Document:

401(k)  Retirement Plan

 Exhibit 4.3 
  

 
 HOMEBANC MORTGAGE CORPORATION 
  
 401(k) RETIREMENT PLAN 
  
  
 Amended and Restated 
  
 Effective April 1, 2005

					
	ARTICLE I DEFINITIONS	  	2
			
	 1.01.
	    	Account	  	2
	 1.02.
	    	Actual Deferral Percentage	  	2
	 1.03.
	    	Administrator	  	2
	 1.04.
	    	Affiliated Employer	  	2
	 1.05.
	    	After-Tax Account	  	3
	 1.06.
	    	After-Tax Contributions	  	3
	 1.07.
	    	Annual Addition	  	3
	 1.08.
	    	Beneficiary	  	3
	 1.09.
	    	Board of Directors	  	4
	 1.10.
	    	Break In Service	  	4
	 1.11.
	    	Catch-up Contributions	  	4
	 1.12.
	    	Code	  	4
	 1.13.
	    	Compensation	  	4
	 1.14.
	    	Contribution Percentage	  	6
	 1.15.
	    	401(k) Account	  	6
	 1.16.
	    	Defined Benefit Plan	  	6
	 1.17.
	    	Defined Contribution Plan	  	6
	 1.18.
	    	Disability	  	6
	 1.19.
	    	Early Retirement Age	  	7
	 1.20.
	    	Earnings	  	7
	 1.21.
	    	Effective Date	  	7
	 1.22.
	    	Eligible Employee	  	7
	 1.23.
	    	Employee	  	7
	 1.24.
	    	Employer	  	8
	 1.25.
	    	Employer Matching Contributions	  	8
	 1.26.
	    	Enrollment Date	  	8
	 1.27.
	    	ERISA	  	8
	 1.28.
	    	ESOP	  	8
	 1.29.
	    	Excess Aggregate Contributions	  	8
	 1.30.
	    	Excess Contributions	  	9
	 1.31.
	    	Excess Deferrals	  	9
	 1.32.
	    	Fiduciary Committee	  	10
	 1.33.
	    	First Horizon National Corporation	  	10
	 1.34.
	    	Fund or Investment Fund	  	10
	 1.35.
	    	Highly Compensated Employee	  	10
	 1.36.
	    	HomeBanc Corp. Stock	  	11
	 1.37.
	    	Hour of Service	  	11
	 1.38.
	    	Information Date	  	14
	 1.39.
	    	Leased Employee	  	14
	 1.40.
	    	Limitation Year	  	14
	 1.41.
	    	Match Account	  	14
	 1.42.
	    	Military Leave	  	14
	 1.43.
	    	Normal Retirement Age	  	15

  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	 

					
	 1.44.
	    	Participant	  	15
	 1.45.
	    	Participant Contributions	  	15
	 1.46.
	    	Payment Starting Date	  	15
	 1.47.
	    	Plan	  	15
	 1.48.
	    	Plan Year	  	15
	 1.49.
	    	Profit Sharing Account	  	16
	 1.50.
	    	Regular Associates	  	16
	 1.51.
	    	Required Beginning Date	  	16
	 1.52.
	    	Retirement	  	16
	 1.53.
	    	Rollover Account	  	16
	 1.54.
	    	Rollover Contributions	  	16
	 1.55.
	    	Spousal Consent	  	16
	 1.56.
	    	Spouse or Surviving Spouse	  	17
	 1.57.
	    	Statutory Compensation	  	17
	 1.58.
	    	Temporary or Interim Employees	  	18
	 1.59.
	    	Trust Fund	  	18
	 1.60.
	    	Trustee	  	18
	 1.61.
	    	Uniformed Service	  	18
	 1.62.
	    	USERRA	  	18
	 1.63.
	    	Valuation Date	  	18
	 1.64.
	    	Year of Service	  	19
		
	ARTICLE II PARTICIPATION	  	20
			
	 2.01.
	    	Initial Eligibility to Participate	  	20
	 2.02.
	    	Eligibility to Make Contributions	  	20
	 2.03.
	    	Reemployment of Former Employees and Former Participants	  	20
	 2.04.
	    	Transferred Participants	  	21
	 2.05.
	    	Termination of Participation	  	21
		
	ARTICLE III CONTRIBUTIONS	  	22
			
	 3.01.
	    	Pre-Tax Contributions	  	22
	 3.02.
	    	After-Tax Contributions	  	23
	 3.03.
	    	Employer Matching Contributions	  	23
	 3.04.
	    	Profit Sharing Contributions	  	24
	 3.05.
	    	Rollover Contributions and Transfers	  	24
	 3.06.
	    	USERRA Contributions	  	25
	 3.07.
	    	Change or Suspension of Contributions	  	26
	 3.08.
	    	Nondiscrimination Limitations	  	26
	 3.09.
	    	Maximum Annual Additions	  	30
	 3.10.
	    	Return of Contributions	  	31
	 3.11.
	    	Contributions Not Contingent Upon Profits	  	31
	 3.12.
	    	Limitation Based on Deductibility	  	31
	 3.13.
	    	Form of Contributions	  	31

  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	ii

					
	ARTICLE IV INVESTMENTS	  	33
			
	 4.01.
	    	Investment Funds	  	33
	 4.02.
	    	Investment of Participants’ Accounts	  	33
	 4.03.
	    	Responsibility for Investments	  	34
	 4.04.
	    	Change of Election	  	34
	 4.05.
	    	Reallocation of Accounts Among the Funds	  	34
	 4.06.
	    	Limitations Imposed by Contracts	  	35
		
	ARTICLE V VALUATION OF THE ACCOUNTS	  	36
			
	 5.01.
	    	Valuation	  	36
	 5.02.
	    	Discretionary Power of the Fiduciary Committee	  	36
	 5.03.
	    	Statement of Accounts	  	36
		
	ARTICLE VI VESTED PORTION OF ACCOUNTS	  	37
			
	 6.01.
	    	After-Tax Account	  	37
	 6.02.
	    	Rollover Account	  	37
	 6.03.
	    	401(k) Account	  	37
	 6.04.
	    	Employer Match and Profit Sharing Accounts	  	37
	 6.05.
	    	Crediting Years of Service for Vesting	  	37
	 6.06.
	    	Vesting Break in Service Rules	  	38
	 6.07.
	    	Forfeitures	  	38
	 6.08.
	    	Amendment of Vesting Schedule	  	39
		
	ARTICLE VII WITHDRAWALS WHILE STILL EMPLOYED	  	40
			
	 7.01.
	    	In-Service Withdrawals	  	40
	 7.02.
	    	Hardship Withdrawal	  	40
	 7.03.
	    	Procedures and Restrictions	  	42
	 7.04.
	    	Dividends on HomeBanc Corp. Stock	  	42
	 7.05.
	    	Limitations on Distributions of 401(k) Contributions	  	43
		
	ARTICLE VIII PLAN LOANS	  	45
			
	 8.01.
	    	In General	  	45
	 8.02.
	    	Loan Application	  	45
	 8.03.
	    	Prohibition Against Discrimination	  	45
	 8.04.
	    	Interest Rate and Amortization Period	  	45
	 8.05.
	    	Adequate Security	  	45
	 8.06.
	    	Loan Amount	  	46
	 8.07.
	    	Repayment Period	  	46
	 8.08.
	    	Events of Default	  	46

  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	iii

					
	ARTICLE IX DISTRIBUTION OF ACCOUNTS UPON SEVERANCE FROM EMPLOYMENT	  	48
			
	 9.01.
	    	Eligibility	  	48
	 9.02.
	    	Form of Distribution	  	48
	 9.03.
	    	Payments Upon Death.	  	49
	 9.04.
	    	Commencement of Payments	  	49
	 9.05.
	    	Small Benefits	  	50
	 9.06.
	    	Form of Payment	  	51
	 9.07.
	    	Required Distributions	  	51
	 9.08.
	    	Direct Rollover of Certain Distributions	  	51
	 9.09.
	    	Minimum Distribution Requirements.	  	53
		
	ARTICLE X ADMINISTRATION OF PLAN	  	55
			
	 10.01.
	    	Named Fiduciaries	  	55
	 10.02.
	    	Fiduciary Limitation	  	55
	 10.03.
	    	Appointment of Committee	  	55
	 10.04.
	    	Fiduciary Committee Responsibilities	  	56
	 10.05.
	    	Responsibilities Regarding Investment Funds	  	58
	 10.06.
	    	Organization of Committees	  	58
	 10.07.
	    	Action of Majority	  	58
	 10.08.
	    	Compensation and Bonding	  	58
	 10.09.
	    	Establishment of Rules; Actions by Committee	  	59
	 10.10.
	    	Service in More Than One Fiduciary Capacity	  	59
	 10.11.
	    	Limitation of Liability	  	59
	 10.12.
	    	Indemnification	  	59
	 10.13.
	    	Errors and Omissions	  	59
	 10.14.
	    	Fiduciary Discretion	  	60
		
	ARTICLE XI MANAGEMENT OF FUNDS	  	61
			
	 11.01.
	    	Trust Agreement	  	61
	 11.02.
	    	Exclusive Benefit Rule	  	61
	 11.03.
	    	Duties of Fiduciary Committee	  	61
	 11.04.
	    	Investment Managers	  	61
	 11.05.
	    	Voting of Shares.	  	62
	 11.06.
	    	Tender or Exchange Offers	  	63
	 11.07.
	    	Expenses	  	64
		
	ARTICLE XII GENERAL PROVISIONS	  	65
			
	 12.01.
	    	Qualification	  	65
	 12.02.
	    	Nonalienation	  	65
	 12.03.
	    	Qualified Domestic Relations Order Payments	  	65
	 12.04.
	    	Conditions of Employment Not Affected by Plan	  	68
	 12.05.
	    	Facility of Payment	  	68

  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	iv

					
	 12.06.
	    	Information	  	68
	 12.07.
	    	Top-Heavy Provisions	  	68
	 12.08.
	    	Unclaimed Benefits	  	70
	 12.09.
	    	Severability	  	70
	 12.10.
	    	Construction	  	71
	 12.11.
	    	No Guarantees	  	71
		
	ARTICLE XIII AMENDMENT, MERGER AND TERMINATION	  	72
			
	 13.01.
	    	Amendment of Plan	  	72
	 13.02.
	    	Additional Employers	  	72
	 13.03.
	    	Termination of Plan	  	73
	 13.04.
	    	No Reversion to Employer	  	73
	 13.05.
	    	Merger or Consolidation	  	74

  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	v

 HOMEBANC MORTGAGE CORPORATION 
  
 401(K) RETIREMENT PLAN 
  
 INTRODUCTION 
  
 The HomeBanc Mortgage Corporation Savings Plan became effective May 1, 2000. The plan is a profit sharing plan intended to meet the requirements of
Section 401(a) of the Internal Revenue Code of 1986, as amended (the “Code”). In addition, the plan provides for contributions under Code section 401(k) and matching and employee contributions under Code section 401(m). 
  
 The restated Plan (the “Plan”) contained herein constitutes an
amendment and restatement of the earlier and remaining plan provisions, effective April 1, 2005, rather than a replacement of such plan. It is intended that this restated Plan meet all the requirements of the Code and the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”). The Plan shall be interpreted to comply with the Code and ERISA and all formal regulations and rulings issued under the Code, ERISA and any amendments thereto. 
  
 The Plan, as amended and restated, converts all amounts held in the HomeBanc
Corp. Stock Fund that relate to (i) Employer Matching Contributions and (ii) Profit Sharing Contributions to an employee stock ownership plan (satisfying the requirements of Code section 4975(e)(7)) and a stock bonus plan (satisfying the
requirements of Code Section 401(a)). 
  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	 

 ARTICLE I 
 DEFINITIONS 
  
 1.01. Account

  
 “Account” means, collectively, the Match
Account, the Profit Sharing Account, the After-Tax Account, the 401(k) Account, and the Rollover Account, to the extent any one or more of such subaccounts has been established for the benefit of a Participant under the terms of the Plan.

  
 1.02. Actual Deferral Percentage 
  
 “Actual Deferral Percentage” means, with respect to a specified
group of Employees for a Plan Year, the average of the ratios, calculated separately for each Employee in that group, of 
  
 (a) the amount of 401(k) Contributions for a Plan Year (whether or not such contributions are returned to the Participant pursuant to Plan section
3.01(c)); to 
  
 (b) the Employee’s Statutory Compensation
for the Plan Year. 
  
 The ratios and the Actual Deferral
Percentage for each specified group of Employees shall be calculated to the nearest hundredth of a percentage point. The Actual Deferral Percentage of an Employee who is eligible but does not make a 401(k) Contribution is zero. For Plan Years
beginning on and after January 1, 2002, Catch-Up Contributions made pursuant to Plan section 3.01(d) and Code section 414(v) shall not be taken into account in determining the Actual Deferral Percentage. 
  
 1.03. Administrator 
  
 “Administrator” means the Fiduciary Committee. Except as otherwise specifically provided herein, the duties of the
Administrator, as set forth in the Plan, shall be performed by the HomeBanc Mortgage Corporation Benefits Department. 
  
 1.04. Affiliated Employer 
  
 “Affiliated Employer” means any corporation which is a member of a controlled group of corporations (determined under Code section 1563(a)
without regard to Code sections 1563(a)(4) and (e)(3)(C)) which also includes as a member HomeBanc Corp., except that with respect to Plan section 3.09 “more than 50 percent” shall be substituted for “at least 80 percent” where
it appears in Code section 1563(a)(1). “Affiliated Employer” shall also include any trade or business under common control (as defined in Code section 414(c)) with HomeBanc Corp., or a member of an affiliated service group (as defined in
Code section 414(m)) which includes HomeBanc Corp., as such definitions may be modified by regulations issued pursuant to Code section 414(o). For purposes of determining an Affiliated Employer of an Employer which is not HomeBanc Corp., the
references to “HomeBanc Corp.” above shall be replaced with the name of such Employer. 
  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	2

 1.05. After-Tax Account 
  

“After-Tax Account” means the subaccount to which a Participant’s After-Tax Contributions are allocated. 
  
 1.06. After-Tax Contributions 
  
 “After-Tax Contributions” means a Participant’s after-tax
contributions made pursuant to Plan section 3.02. 
  
 1.07. Annual Addition

  
 “Annual Addition” means the sum of the
following amounts allocated to a Participant’s Accounts under this Plan or any other Defined Contribution Plan maintained by an Employer or an Affiliated Employer for any Limitation Year: 
  
 (a) the total contributions, including 401(k) Contributions, made on the
Participant’s behalf by the Employers and all Affiliated Employers; 
  
 (b) Participant Contributions, exclusive of any Rollover Contributions, and determined without regard to Employee contributions to a simplified employee pension (SEP) which are excludable from gross income under Code
section 408(k)(6); 
  
 (c) forfeitures, if applicable, that have
been allocated to the Participant’s Accounts under this Plan or his accounts under any other such Defined Contribution Plan. Any Excess Deferrals, Excess Contributions or Excess Aggregate Contributions which may have been distributed under the
provisions of Plan section 3.01(c) or Plan section 3.08 shall be included in the Annual Addition for the year allocated; and 
  
 (d) amounts allocated to an individual medical account as defined in Code section 415(l)(2), which is part of any pension or annuity plan maintained by
the Employer or any Affiliated Employer and amounts derived from contributions paid or accrued which are attributable to post-retirement medical benefits allocated to the separate account of a key employee (as defined in Code section 419A(d)(3))
under a welfare benefit plan (as defined in Code section 419(e)) maintained by an Employer or Affiliated Employer. 
  
 (e) Notwithstanding the preceding, Catch-Up Contributions made pursuant to Plan section 3.01(d) and Code section 414(v) are not treated as Annual
Additions. 
  
 1.08. Beneficiary 
  
 “Beneficiary” means any person or entity designated by a
Participant in a manner prescribed by the Administrator to receive benefits payable in the event of the Participant’s death. However, if the Participant is married, his Spouse shall be deemed to be the Beneficiary unless Spousal Consent to the
designation of another Beneficiary has been received by the Administrator. Notwithstanding the preceding, to the extent a Qualified Domestic Relations 

  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	3

 
Order has been entered naming an Alternate Payee (as defined in Plan section 12.03(l)) as Beneficiary of all or any portion of any benefit payable under this
Plan on the death of a Participant, such Qualified Domestic Relations Order shall control or supersede, as applicable, the relevant portion of any such Beneficiary designation. If no such designation is in effect at the time of death of the
Participant, or if no person or persons so designated shall survive the Participant, the Participant’s Spouse, children, parents, brothers and sisters, or estate, in that order, shall be deemed to be the Beneficiary. 
  
 1.09. Board of Directors 
  
 “Board of Directors” means the Board of Directors of HomeBanc
Corp. 
  
 1.10. Break In Service 
  
 A “Break in Service” means a Year of Service during which a
Participant completes fewer than 501 Hours of Service with the Employer. An Employee who is reemployed after an absence from employment due to Military Leave shall be treated as not having incurred a Break in Service as a result of his period or
periods of Military Leave. 
  
 1.11. Catch-up Contributions 
  
 “Catch-up Contributions” mean an eligible Participant’s
contributions under Plan section 3.01(d) and Code section 414(v). Catch-up Contributions shall be disregarded for purposes of Plan sections 1.02 and 1.14. 
  
 1.12. Code 
  
 “Code” means the Internal Revenue Code of 1986, as amended from time to time. Reference to a section of the Code shall include that section and
any comparable section or sections of any future legislation that amends, supplements or supersedes said section. 
  
 1.13. Compensation 
  
 (a) “Compensation” means an Employee’s wages, salary and other amounts received (without regard to whether an amount is paid in cash) for
personal services actually rendered in the course of employment with the Employer to the extent that the amounts are includible in gross income (including, by way of example, overtime, bonuses and commissions, compensation for services on the basis
of a percentage of profits, tips, and premium pay). Compensation excludes foreign source income, accountable and non-accountable expense reimbursements or other expense allowances, severance pay, cash and non-cash fringe benefits, moving expenses
(whether or not deductible), long-term disability, taxable medical reimbursements, non-taxable fringe benefits, and sick pay. Compensation also excludes (1) employer contributions to a plan of deferred compensation which are not includable in the
Employee’s gross income for the taxable year in which contributed, or employer contributions under a “simplified employee pension” as defined in Code section 408(k), to the extent such contributions are deductible by the Employee, or
any distributions from a plan of deferred compensation; (2) amounts realized from 

  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	4

 
the grant or exercise of a non-qualified stock option, or when restricted stock (or property) held by the Employee either becomes freely transferable or is
no longer subject to a substantial risk of forfeiture or with respect to which a Code section 83(b) election is made; (3) amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option plan; and (4)
other amounts which receive special tax benefits or contributions made by the Employer (whether or not under a salary reduction agreement) for the purchase of an annuity described in Code section 403(b) (whether or not the amounts are actually
excludable from the gross income of the Employee). Compensation includes taxable group term insurance premiums and any elective deferral contributions (as defined in Code section 402(g)(3)) and any amount which is contributed or deferred by the
Employer at the election of the Employee and which is not includible in the gross income of the Employee by reason of Code sections 125, 132(f)(4), 403(b), or 457. 
  
 (b) Amounts shall be treated as Compensation in the calendar year of receipt by the Participant. 
  
 (c) Dollar Limitation. Notwithstanding anything herein to the
contrary, the annual Compensation of each Participant taken into account in determining allocations for any Plan Year beginning on and after January 1, 2002, shall not exceed $200,000, as adjusted for cost-of-living increases in accordance with Code
section 401(a)(17)(B). Compensation means Compensation during the Plan Year (the determination period). The cost-of-living adjustment in effect for a calendar year applies to annual Compensation for the determination period that begins with or
within such calendar year. 
  
 (d) Notwithstanding the preceding,
to facilitate the efficient administration of the Plan and interface with any Employer’s payroll system, for purposes of determining the amount of Compensation that may be taken into account for purposes of the Code section 401(a)(17) annual
limitation, Compensation shall include either — depending on which is more favorable to the affected Participant — all Compensation earned through the applicable pay period, or the sum of all pro-rated amounts of Compensation through the
applicable pay period where the pro-rated amount as to any affected Participant for each pay period is the applicable annual limit divided by the number of pay periods in the Plan Year applicable to such Participant (adjusted to reflect changes in
status). In no event may the amount of Compensation that is taken into account exceed a Participant’s actual compensation through the applicable pay period. 
  
 (e) During Military Leave. Any Employee returning from Military Leave while his or her reemployment rights are
protected by USERRA shall be treated as having received Compensation during his or her Military Leave equal to either (i) the Compensation the Employee would have received from an Employer but for the Military Leave, or (ii) if the Compensation the
Employee would have received during the period of Military Leave is not reasonably certain, the Employee’s average Base Compensation during the 12-month period immediately preceding the Military Leave (or, if shorter, the period of employment
immediately preceding the Military Leave). 
  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	5

 1.14. Contribution Percentage 
  
 “Contribution Percentage” means, with respect to a specified group of Employees for a Plan Year, the average of
the ratios, calculated separately for each Employee in that group, of 
  
 (a) the sum of the Employee’s Employer Matching Contributions and After-Tax Contributions for that Plan Year, to 
  
 (b) his Statutory Compensation for the Plan Year. 
  
 The ratios and the Contribution Percentage for each specified group of Employees shall be calculated to the nearest hundredth of a percentage point. The
ESOP and non-ESOP components of the Plan will be treated as a single plan for testing purposes. 
  
 1.15. 401(k) Account 
  
 “401(k) Account” means the subaccount to which shall be credited the 401(k) Contributions made on a Participant’s behalf pursuant to Plan section 3.01 and Catch-Up Contributions under Plan section 3.01(d) and Code section
414(v). 
  
 1.16. Defined Benefit Plan 
  
 “Defined Benefit Plan” means any qualified plan which is not a
Defined Contribution Plan; however, in the case of a Defined Benefit Plan which provides a benefit which is based partly on the balance of the separate account of a Participant, that plan shall be treated as a Defined Contribution Plan to the extent
benefits are based on the separate account of a Participant and as a Defined Benefit Plan with respect to the remaining portion of the benefits under the plan. 
  

1.17. Defined Contribution Plan 
  
 “Defined Contribution Plan” means a qualified plan that is a pension, profit-sharing or stock bonus plan and which provides for an individual
account for each Participant and for benefits based solely upon the amounts allocated to the Participant’s account, and any income, expenses, gains and losses, and any forfeitures of accounts of other Participants which may be allocated to that
Participant’s accounts. 
  
 1.18. Disability 
  
 “Disability” means that the Participant can no longer continue in
the service of his Employer because of a mental or physical condition that is likely to result in death or is expected to continue for a period of at least six months. A Participant shall be considered to have incurred a Disability only if he is
eligible to receive a disability benefit under the terms of the Federal Social Security Act. 
  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	6

 1.19. Early Retirement Age 
  
 “Early Retirement Age” means the Participant’s attainment of age 55 with 10 full years of participation in
the Plan. If a Participant separates from service before satisfying the age requirement for early retirement, but has satisfied the participation requirement, the Participant will be entitled to elect an early retirement benefit upon satisfaction of
such age requirement. 
  
 1.20. Earnings 
  
 “Earnings” means the amount of earnings to be returned with any
Excess Deferrals, Excess Contributions or Excess Aggregate Contributions under Plan sections 3.01 or 3.08 as determined in accordance with regulations prescribed by the Secretary of the Treasury under the provisions of Code sections 402(g), 401(k)
and 401(m). 
  
 1.21. Effective Date 
  
 “Effective Date” means the original effective date of the Plan,
which was May 1, 2000. Except as expressly provided to the contrary herein or as otherwise required by law to be effective as of an earlier or later date, the effective date of this restatement shall be April 1, 2005. 
  
 1.22. Eligible Employee 
  
 “Eligible Employee” means any Employee who is classified as a Regular Associate or a Temporary or Interim
Employee. 
  
 1.23. Employee 
  
 (a) “Employee” means any common law employee who is employed by
and actually rendering services for an Employer, and who is classified as an employee by such Employer for U.S. federal income tax withholding purposes (whether or not such classification is ultimately determined to be correct as a matter of law).

  
 (b) Exclusions. The term Employee excludes all (i)
Leased Employees; (ii) non-resident aliens; (iii) independent contractors; (iv) reclassified employees (persons formerly treated as independent contractors by an Employer who it subsequently agrees to retroactively treat or reclassify as common law
employees); (v) any person who is included in a unit of employees covered by a collective bargaining agreement between an Employer and a collective bargaining unit. It is expressly intended that individuals not treated as common law employees by the
Employer on its payroll records are to be excluded from Plan participation even if a court or administrative agency subsequently reclassifies such individuals as common law employees and not independent contractors. 
  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	7

 1.24. Employer 
  
 “Employer” means HomeBanc Corp., or where appropriate, any Affiliated Employer which has adopted or subsequently adopts the Plan in accordance
with Plan section 13.02, including HomeBanc Mortgage Corporation, and their respective successors and assigns. 
  
 Unless otherwise specifically addressed or contemplated, actions by an Employer shall be actions of HomeBanc Corp. 
  
 1.25. Employer Matching Contributions 
  
 “Employer Matching Contributions” means all amounts contributed on
a Participant’s behalf pursuant to Plan section 3.03. 
  
 1.26. Enrollment
Date 
  
 “Enrollment Date” means, where applicable,
a day as soon as practicable after an Employee’s deferral elections are received in accordance with procedures established by the Administrator. 
  
 1.27. ERISA 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. Reference to a section of ERISA shall include
that section and any comparable section or sections of any future legislation that amends, supplements or supersedes said section. 
  
 1.28. ESOP 
  
 “ESOP” means all amounts held in the HomeBanc Corp. Stock Fund that relates to (i) Employer Matching Contributions and (ii) Profit Sharing
Contributions. Such portion of the Plan is intended to be a stock bonus plan, as defined in Treasury Regulation 1.401-1(b)(1)(iii), and an employee stock ownership plan, satisfying the requirements of Code section 4975(e)(7). Amounts constituting
the ESOP are to be invested solely or 100% in HomeBanc Corp. Stock, except to the extent required to facilitate liquidity needs for operational purposes and subject to Plan section 4.05(b). 
  
 1.29. Excess Aggregate Contributions 
  
 “Excess Aggregate Contributions” means, for any Plan Year, the
amount, if any, by which the Participant’s After-Tax Contributions and Employer Matching Contributions actually made during such Plan Year on behalf of a Highly Compensated Employee exceeds the maximum amount of such contributions permitted
under the limitations described in Plan section 3.08(c). To determine the total Excess Aggregate Contributions under the Plan for a Plan Year, 
  

			
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 (a) calculate the reduction in contributions made on behalf of Highly Compensated Employees in order of
their Contribution Percentages, beginning with the highest of such percentages in accordance with Treas. Reg. Section 1.401(m)-1(e)(2); then 
  
 (b) total the dollar amounts calculated in subsection (a). 
  
 Excess Aggregate Contributions are determined after first determining any Excess Deferrals and Excess Contributions. 
  
 1.30. Excess Contributions 
  
 “Excess Contributions” means, for any Plan Year, the amount, if
any, by which the Elective Deferrals made during such Plan Year by a Highly Compensated Employee exceeds the maximum amount of such contributions permitted under the limitations described in Plan section 3.08(a). To determine the total Excess
Contributions under the Plan for a Plan Year, 
  
 (a) calculate
the reduction in contributions made on behalf of Highly Compensated Employees in order of their Actual Deferral Percentages, beginning with the highest of such percentages in accordance with Treas. Reg. Section 1.401(k)-1(f)(2); then 
  
 (b) total the dollar amounts calculated in subsection (a). 
  
 Excess Contributions are determined after first determining any Excess Deferrals. 

 
 1.31. Excess Deferrals 
  
 “Excess Deferrals” means the amount of elective deferrals that are
includible in the Participant’s gross income under Code section 402(g) to the extent that such Participant’s elective deferrals for a taxable year exceed the applicable dollar amount under Code section 402(g). With respect to any taxable
year, a Participant’s “elective deferrals” are the sum of all contributions made by an Employer on behalf of such Participant pursuant to: 
  
 (a) any election to defer under any qualified cash or deferred arrangement as described in Code section 401(k) to the extent not includible in gross
income for the taxable year under subsection (e)(3); 
  
 (b) any
simplified employee pension cash or deferred arrangement as described in Code section 402(h)(1)(B), or a savings incentive match plan for employees of small employers as described in Code section 408(p)(2)(A)(i); 
  
 (c) any eligible deferred compensation under Code section 457; 
  
 (d) any plan described under Code section 501(c)(18); and 
  
 (e) any contribution made by an employer on behalf of a Participant for the
purchase of an annuity contract under Code section 403(b) pursuant to a salary reduction election. 
  

			
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 Effective for taxable years beginning on and after January 1, 2002, Catch-Up Contributions made pursuant
to Plan section 3.01(d) and Code section 414(v) are not included in the computation of Excess Deferrals. 
  
 1.32. Fiduciary Committee 
  
 “Fiduciary Committee” means the Fiduciary Committee appointed by the chief executive officer of HomeBanc Corp. to administer the Plan in accordance with Article X and to select, monitor and supervise the investment options
available under the Plan (other than the HomeBanc Corp. and First Horizon National Corporation f/k/a First Tennessee Bank Stock Funds as provided in Article XI. 
  

1.33. First Horizon National Corporation f/k/a First Tennessee Bank Stock 
  
 “First Horizon National Corporation f/k/a First Tennessee Bank Stock” means the voting stock, $.625 par value per
share, of First Horizon National Corporation f/k/a First Tennessee Bank. This First Horizon National Corporation f/k/a First Tennessee Bank Stock is stock in which some Participants’ Accounts were invested when First Horizon National
Corporation f/k/a First Tennessee Bank previously was an Affiliated Employer. Such First Horizon National Corporation f/k/a First Tennessee Bank Stock has remained in the Plan subject to a Participant’s right to transfer his Accounts invested
in First Horizon National Corporation f/k/a First Tennessee Bank Stock out of the First Horizon National Corporation f/k/a First Tennessee Bank Stock at any time. 
  
 1.34. Fund or Investment Fund 
  
 “Fund” or “Investment Fund” means any investment medium which may be selected from time to time by the Fiduciary Committee for the
investment of a Participant’s balances under the Plan. The Fiduciary Committee shall have no responsibility for or with respect to the HomeBanc Corp. and First Horizon National Corporation f/k/a First Tennessee Bank Stock Funds which are made
available by the settlor. The Fiduciary Committee shall be responsible for the selection and retention of all other Investment Funds made available to Participants other than the HomeBanc Corp. and First Horizon National Corporation f/k/a First
Tennessee Bank Stock Funds. 
  
 1.35. Highly Compensated Employee

  
 (a) “Highly Compensated Employee” means:

  
 (1) a common law employee of the Employer or
an Affiliated Employer who was at any time during the Plan Year or the preceding Plan Year a five percent owner (as defined in Code section 416(i)(1)); or 
  
 (2) a common law employee of the Employer or an Affiliated Employer who received Statutory Compensation in excess of $80,000 (as adjusted
from time to time to reflect changes in the cost of living in accordance with the Code and applicable regulations) for the preceding Plan Year. 
  

			
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 (A) Only those employees with Statutory Compensation in excess of $80,000 (as adjusted
from time to time to reflect change in the cost of living) for the preceding Plan Year who are among the top 20 percent of all employees of Employers and the applicable Employer’s Affiliated Employers in Statutory Compensation (the top-paid
group) for the previous Plan Year will be considered Highly Compensated Employees. 
  
 (B) An employee’s Statutory Compensation shall be the compensation paid during the calendar year beginning with or within the
previous Plan Year. 
  
 (b) Top-Paid Group. For purposes of
determining the number of Employees in the top-paid group under subsection (a)(2)(A) above, the following Employees shall be excluded: 
  
 (1) Employees who have not completed six (6) months of service; 
  
 (2) Employees who normally work less than seventeen and one-half (17 1/2) hours per week; 
  

(3) Employees who normally work not more than six (6) months during any year; 
  
 (4) Employees who have not attained age twenty-one (21);

  
 (5) except to the extent provided in Treasury
regulations, Employees who are included in a unit of employees covered by an agreement that the Secretary of Labor finds to be a bargaining agreement between employee representatives and the Employer or an Affiliated Employer; and 
  
 (6) Employees who are nonresident aliens and who receive no
earned income (within the meaning of Code section 911(d)(2)) from the Employer or an Affiliated Employer which constitutes income from sources within the United States (within the meaning of Code section 861(a)(3)). 
  
 1.36. HomeBanc Corp. Stock 
  
 “HomeBanc Corp. Stock” means the voting common stock, $.01 par
value per share, of HomeBanc Corp. which constitutes “qualifying employer securities,” as defined in Code section 4975(e)(8). 
  
 1.37. Hour of Service 
  
 “Hours of Service” means: 
  
 (a) Work Hours. Each hour for which an Employee is directly or indirectly paid for the performance of duties, to be credited to the Employee for
the computation period in which the duties are performed. 
  

			
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 (b) Non-Work Hours. Each hour for which an Employee is directly or indirectly paid, or entitled to
payment, by the Employer for reasons other than the performance of duties (irrespective of whether the employment relationship has terminated due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty
prior to December 12, 1994, or leave of absence). 
  
 (1) Maximum Hours. No more than 501 Hours of Service will be credited under this subsection for any single continuous period (whether or not such period occurs in a single computation period). 
  
 (2) Exclusions. No Hours of Service are credited
under this subsection (b) to an individual with respect to any payment that is made or is due under a plan maintained solely for the purposes of complying with applicable worker’s compensation or unemployment compensation or disability
insurance laws, or for a payment that solely reimburses an individual for his medical or medically related expenses incurred. 
  
 (3) Source of Payment. For purposes of this subsection (b), a payment is deemed to be made by or be due from an Employer or an
Affiliated Employer regardless of whether it is made by or due from an Employer or an Affiliated Employer directly, or indirectly through a trust fund to which the Employer or Affiliated Employer contributes or pays premiums and regardless of
whether contributions made or due to the trust fund, or other entity are for the benefit of particular employees or on behalf of a group of employees in the aggregate. 
  
 (c) Back Pay. Each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by
the Employer excluding any hour credited under subsection (a) or (b). These Hours of Service shall be credited to the Employee for the computation period or periods to which the award or agreement pertains, rather than the computation period in
which the award, agreement or payment is made. 
  
 (d) Military
Leave. Each hour during a period in which an individual would have performed services for and been compensated by an Employer or an Affiliated Employer but for the fact that such individual was on a military leave of absence for service in the
Uniformed Services, provided the individual entered such service directly from the employ of an Employer or an Affiliated Employer, was discharged from such service and was reemployed by an Employer or an Affiliated Employer on or after December 12,
1994, within the period during which his employment rights as a veteran are protected by law. Hours credited under this subsection shall be calculated, but not limited, in accordance with subsection (b). 
  
 (e) Leave of Absence. Each hour attributable to a period of service
with respect to which an Employee is not paid or entitled to payment (including an approved leave of absence). For purposes of this subsection, the number of Hours of Service attributable to any such period 

  

			
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of service shall be determined by the Administrator on a basis consistent with the Employee’s customary work week. The provisions of Labor Regulations
sections 2530.200b-2(b) and (c) are incorporated herein by reference. 
  
 (f) Leased Employees. Hours of Service shall be credited for any individual considered an Employee for purposes of this Plan under Code section 414(n) or (o) and the Regulations thereunder. 
  
 (g) Equivalencies. Hours of Service shall be credited on the basis of
the actual hours for which an individual is paid or entitled to payment. Any method for crediting Hours of Service shall apply on a uniform basis to all Employees. 
  
 (h) Service for Affiliate. An Employee shall receive credit for Hours of Service performed for an Affiliated Employer
in the same manner and to the same extent as though such Service had been performed for the Employer. For purposes of the Plan, an owner-Employee shall accrue credit for Hours of Service in the same manner and to the same extent as though he were an
Employee. Further, Hours of Service with First Horizon National Corporation f/k/a First Tennessee Bank shall be recognized for purposes of the Plan, to the extent such hours would be recognized hereunder if First Horizon National Corporation f/k/a
First Tennessee Bank had been an Affiliated Employer. 
  
 (i)
Purpose. Hours of Service are counted for the purposes of determining a Year of Service, a Break in Service, and employment commencement (or reemployment commencement) dates. 
  
 (j) Parental Leave. Solely for purposes of determining, for participation and vesting purposes, whether a Break in
Service has occurred, an Employee who is absent from work for maternity or paternity reasons shall receive credit for 
  
 (1) Hours of Service. If the Employer has specified that Years of Service will be based on Hours of Service, the Hours of Service
which would otherwise have been credited to such individual but for such absence, or in any case in which such hours cannot be determined, eight Hours of Service per day of such absence up to a maximum of 501 Hours of Service. If such an Employee
should incur a Break in Service in the computation period in which such absence began, such hours shall be credited to that computation period. If such Employee would not incur such a Break in Service in the first computation period, such hours
shall be credited to the next succeeding computation period. The Hours of Service to be so credited shall be determined pursuant to Department of Labor Regulations Sections 2530.200b-2(b) and (c), as amended from time to time. 
  
 (2) Parental Leave Defined. For purposes of this
subsection, an absence from work for maternity or paternity reasons means an absence (A) by reason of the pregnancy of the individual, (B) by reason of a birth of a child of the individual, (C) by reason of the placement of a child with the
individual in connection with the adoption of such child by such individual, or (D) for purposes of caring for such child for a period beginning immediately following such birth or placement. 
  

			
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 (k) Family and Medical Leave Act. Solely for purposes of determining, for participation and
vesting purposes, whether a Break in Service has occurred in a computation period, an Employee who takes leave under the Family and Medical Leave Act will receive credit for the Hours of Service that normally would have been credited to such
individual but for such leave. The total number of Hours of Service that can be credited under this subsection cannot exceed 501, and such Hours of Service shall be credited (i) in the computation period in which the absence began if necessary to
prevent the Break in Service in that period, or (ii) in all other cases, in the following computation period. Any individual who receives credit for Hours of Service for a maternity or paternity leave of absence under subsection (j) will not receive
credit for those same Hours of Service under this subsection (k). 
  
 1.38.
Information Date 
  
 “Information Date” means the
date the Participant receives the information required by Plan section 9.01. 
  
 1.39. Leased Employee 
  
 “Leased
Employee” means a person who is not otherwise an Employee and who, pursuant to an agreement between an Employer and another person (a “leasing organization”), has performed services for an Employer, or for an Employer and related
persons (determined in accordance with Code section 414(n)(6)), on a substantially full time basis for a period of at least one year, and such services are performed under the primary direction or control of an Employer, or of an Employer and
related persons (determined in accordance with Code section 414(n)(6)). 
  
 1.40. Limitation Year 
  
 “Limitation
Year” means the calendar year. 
  
 1.41. Match Account 
  
 “Match Account” means the subaccount to which shall be credited
the Employer Matching Contributions made on a Participant’s behalf. 
  
 1.42. Military Leave 
  
 “Military
Leave” means the performance of duty on a voluntary or involuntary basis in a Uniformed Service under competent authority and includes active duty, active duty for training, initial active duty for training, inactive duty training, full-time
National Guard duty, a period for which a person is absent from a position of employment for the purpose of an examination to determine the fitness of the person to perform such duty, and any other absence qualifying as “service in the
uniformed services” within the meaning of USERRA. Notwithstanding the preceding, Military Leave does not include service in a Uniformed Service that terminates as a result of separation of the Participant from such Uniformed Service under other
than honorable conditions, as set forth in USERRA. 
  

			
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 1.43. Normal Retirement Age 
  
 “Normal Retirement Age” means the Participant’s attainment of age 65. 
  
 1.44. Participant 
  
 “Participant” means any Eligible Employee who has satisfied the applicable eligibility requirements and elected to
become a Participant in the Plan or has an Account in the Plan or, solely with respect to investments, earnings allocations and distributions, any former Employee whose Account in the Plan has not yet been distributed. 
  
 1.45. Participant Contributions 
  
 “Participant Contributions” means a Participant’s After-Tax,
401(k), or Catch-up Contributions, determined as a percentage of a Participant’s Compensation and directly or indirectly contributed by or on behalf of a Participant pursuant to Plan sections 3.01 or 3.02. 
  
 1.46. Payment Starting Date 
  
 “Payment Starting Date” means a date that cannot be earlier than
30 days or later than 90 days after the Participant receives the information required by Plan section 9.01 unless he waives the 30-day notice requirement pursuant to that Plan section. 
  
 1.47. Plan 
  
 “Plan” means, effective April 1, 2005, the HomeBanc Mortgage Corporation 401(k) Retirement Plan. Prior to April 1, 2005, the Plan was known as
the HomeBanc Mortgage Corporation Savings Plan. The Plan is intended to be a profit sharing and stock bonus plan and an employee stock ownership plan (within the meaning of Code section 4975(e)(7)). Notwithstanding the existence of the profit
sharing, stock bonus, 401(k), 401(m), and ESOP components of the Plan, the components shall together constitute a “single plan” for purposes of Code section 414(l). There shall be no transfers of assets between the Participant and Rollover
Contribution components of the Plan and the Employer Match and Profit Sharing components of the Plan. 
  
 1.48. Plan Year 
  
 “Plan Year” means the 12-month period commencing each January 1 and ending each subsequent December 31. 
  

			
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 1.49. Profit Sharing Account 
  
 “Profit Sharing Account” means the subaccount to which shall be credited Employer contributions made on a
Participant’s behalf pursuant to Plan section 3.04 and earnings on those contributions. 
  
 1.50. Regular Associates 
  
 “Regular Associates” means individuals who are not Temporary Employees. 
  
 1.51. Required Beginning Date 
  
 “Required Beginning Date” means April 1 of the calendar year following the later of (i) the calendar year in which a Participant separates from service, or (ii) the calendar year in which a Participant attains age seventy and
one-half (70 1/2). Notwithstanding the preceding, the Required Beginning Date of a Participant who is a five
percent owner (as defined in Code section 416(i)(1)), of the Employer, is April 1 of the calendar year following the calendar year in which such Participant attains age seventy and one-half (70 1/2). 
  
 1.52. Retirement 
  
 “Retirement” means, except as noted below, as of any date of determination, the Participant’s early retirement, disability retirement, retirement as of the first day of the month coincident with or next following the
Participant’s attainment of his Normal Retirement Age or the retirement of a Participant after the first day of the month coincident with or next following his Normal Retirement Age as described hereunder. Normal Retirement means the
Participant’s termination of employment with the Employers and all Affiliated Employers. 
  
 1.53. Rollover Account 
  
 “Rollover Account” means the subaccount to which shall be credited the Rollover Contributions made by an Employee and earnings on those contributions. 
  
 1.54. Rollover Contributions 
  
 “Rollover Contributions” means all amounts contributed pursuant to Plan section 3.05(a). 
  
 1.55. Spousal Consent 
  
 “Spousal Consent” means written consent given by a Participant’s Spouse to a designation made by the
Participant of a specified Beneficiary other than his Spouse. The designated Beneficiary shall not be changed unless further Spousal Consent is given. That consent must be duly witnessed by a Plan representative or notary public and shall
acknowledge the effect on the Spouse of the Participant’s election. The requirement for Spousal Consent may be waived by the Administrator if it is established to the Administrator’s satisfaction that there is no Spouse, or that the Spouse
cannot be located, or that such other circumstances exist as may be permitted by applicable law. Spousal Consent shall be applicable only to the particular Spouse who provides the consent. 
  

			
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 1.56. Spouse or Surviving Spouse 
  
 “Spouse” means, unless otherwise provided in a Qualified Domestic Relations Order pursuant to Plan section 12.03,
a person of the opposite sex to whom the Participant was married, as determined under the laws of the jurisdiction in which the Participant resided at the time of determination, at the earlier of his Payment Starting Date or the date of his death.

  
 1.57. Statutory Compensation 
  
 (a) “Statutory Compensation” means the wages, salary, and other
amounts received (without regard to whether or not an amount is paid in cash) by an Employee for personal services actually rendered in the course of employment with the Employer or Affiliated Employer maintaining the Plan to the extent that such
amounts are includible in gross income (including by way of example, overtime, bonuses and commissions, compensation for services on the basis of a percentage of profits, bonuses, fringe benefits, reimbursements, and expense allowances). Statutory
Compensation shall also include amounts pursuant to Code sections 402(e)(3), 402(h), and 403(b), and amounts contributed to any welfare benefit or qualified transportation fringe benefit plans maintained by the Employer through a reduction in the
Employee’s compensation, which, pursuant to Code sections 125 or 132(f)(4), respectively, are not included in the gross income of the Employee for the taxable year in which such amounts are contributed. 
  
 (b) Statutory Compensation shall exclude the following 
  
 (1) Employer contributions to a plan of deferred
compensation which are not includible in the Employee’s gross income for the taxable year in which contributed, or Employer contributions under a “simplified employee pension,” as defined in Code section 408(k), to the extent such
contributions are deductible by the Employee, or any distributions from a plan of deferred compensation; 
  
 (2) amounts realized from the exercise of a non-qualified stock option, or when restricted stock (or property) held by the Employee either
becomes freely transferable or is no longer subject to a substantial risk of forfeiture; 
  
 (3) amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option plan; and 

 
 (4) other amounts which receive special tax benefits or
contributions made by the Employer (whether or not under a salary reduction agreement) towards the purchase of an annuity described in Code section 403(b) (whether or not the amounts are actually excludable from the gross income of the Employee).

  

			
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 (c) For any Plan Year commencing on and after January 1, 2002, Statutory Compensation for Plan purposes
may not exceed $200,000 or such adjusted dollar amount announced by the Secretary of the Treasury or his delegate in accordance with Code section 401(a)(17)(B). The cost-of-living adjustment in effect for a calendar year shall apply to any
determination period beginning in such calendar year. 
  
 1.58. Temporary or
Interim Employees 
  
 “Temporary or Interim
Employees” are individuals who are hired to normally work for the Employer for a period of 90 days or less per Plan Year or otherwise for a temporary or specific assignment of limited duration. 
  
 1.59. Trust Fund 
  
 Trust Fund means the assets of the Plan held in trust by one or more Trustees or Custodians pursuant to the terms of a Trust
Agreement or custody agreement and the Plan. 
  
 1.60. Trustee 

 
 “Trustee” or “Trustees” or “Custodian” mean
the person, persons, entity or entities appointed by the Board or its delegate to hold part or all of the assets of the Plan as provided in Article XI. 
  
 1.61. Uniformed Service 
  
 “Uniformed Service” means the Armed Forces; the Army National Guard and the Air National Guard when engaged in active duty training, inactive
duty training, or full-time National Guard duty; the commissioned corps of the Public Health Service; and any other category of persons designated by the President of the United States in time of war or emergency. 
  
 1.62. USERRA 
  
 “USERRA” means the Uniformed Services Employment and Reemployment Rights Act of 1994. 
  
 1.63. Valuation Date 
  
 “Valuation Date” means each business day of the Plan Year that the United States financial markets are open.

  

			
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 1.64. Year of Service 
  
 “Year of Service” means as follows: 
  
 (a) Years of Service and Breaks in Service shall be determined as follows: 
  
 The initial computation period shall be the 12-consecutive month period beginning with the date a Temporary or Interim
Employee first performs an Hour of Service with the Employer (employment commencement date). The computation period after the initial computation period which shall be used for purposes of measuring the completion of a Year of Service shall be the
Plan Year which includes the first anniversary of the Temporary or Interim Employee’s employment commencement date. 
  
 (b) Year of Service means, effective May 1, 2000, a Plan Year (beginning with the Plan Year that includes the date an Employee is first credited with an
Hour of Service for the performance of duties with the Employer) in which an Employee is credited with at least 1,000 Hours of Service. 
  
 (c) In calculating a Participant’s Years of Service for purposes of determining the nonforfeitability of a Participant’s Matching and Profit
Sharing Account, a Participant shall be deemed to have earned Years of Service equal to the product of (i) the number of calendar months (or a fraction thereof) that the Participant was absent from employment due to Military Leave, and (ii) the
average Hours of Service per month the Participant earned during the 12-month period immediately preceding the Military Leave (or, if shorter, the period of the Participant’s employment with the Employer immediately preceding the Military
Leave) if the Participant’s reemployment with the Employer or an Affiliated Employer is in accordance with USERRA. 
  
 (d) For purposes of eligibility and vesting, an individual who is a Leased Employee of an Employer and who subsequently becomes an Employee of an Employer
shall, subject to the Plan’s Break in Service rules, receive credit for all Years of Service he is deemed to have completed for an Employer. 
  
 (e) Additionally, for purposes of eligibility and vesting, an individual shall not receive any credit for any time during which he is working as an
independent contractor. 
  
 (f) Periods of approved leave of
absence not in excess of two years shall be counted as service to the extent determined by the Administrator on the basis of established uniform and nondiscriminatory rules. 
  

			
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 ARTICLE II 
 PARTICIPATION 
  
 2.01. Initial
Eligibility to Participate 
  
 (a) Each Employee who is a
Participant in the Plan on March 31, 2005, continues to be a Participant so long as he continues to be employed by the Employer as an Eligible Employee or, solely for purposes of the Plan’s investment earnings allocation and distribution
provision, is entitled to benefits from the Plan. 
  
 (b) Each
other Regular Associate is eligible to participate in the Plan on the day on which he first completes an Hour of Service for the Employer following his employment or reemployment, and continues to be a Participant as long as he continues to be
employed by an Employer as an Eligible Employee or, solely for purposes of the Plan’s investment earnings allocation and distribution provision, is entitled to benefits from the Plan. 
  
 (c) Each Temporary or Interim Employee is eligible to participate on the day
on which he completes a Year of Service in accordance with Plan section 1.64(a) and continues to be employed by an Employer as an Eligible Employee or, solely for purposes of the Plan’s investment earnings allocation and distribution provision,
is entitled to benefits from the Plan. 
  
 2.02. Eligibility to Make
Contributions 
  
 (a) Enrollment. Each Eligible
Employee may begin making Participant Contributions as soon as administratively practicable following the date he satisfies the eligibility criteria of Plan section 2.01 and enrolls in the Plan in a manner prescribed by the Administrator, including:

  
 (1) designating the percentage of
Compensation he wishes to contribute under the Plan or making the election described in Plan section 3.01, or both, or declining to make such contributions or election; 
  
 (2) authorizing the Employer to make regular payroll deductions or to reduce his Compensation, or both; and

  
 (3) making an investment election.

  
 (b) Beneficiary Designation. Each Participant may
designate a Beneficiary in the manner prescribed by the Administrator. 
  
 2.03. Reemployment of Former Employees and Former Participants 
  
 Any person reemployed by the Employer as an Eligible Employee may commence making Participant Contributions as soon as he has satisfied any applicable eligibility requirements and as soon as administratively
practicable following receipt by the Administrator of such instructions. 
  

			
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 (a) Reemployment Prior to One-Year Break in Service. If any Participant has terminated employment,
and is reemployed by the Employer before a Break in Service, he shall continue to participate in the Plan in the same manner as if such termination had not occurred. 
  
 (b) Reemployment After One-Year Break in Service. Service shall not include, with respect to any Employee who is not
vested in his Account under Plan article VI, service prior to a Break in Service if the aggregate number of consecutive Breaks in Service of such Employee equals or exceeds five (exclusive of any Years of Service excluded under this exception).

  
 (1) Prior Service Disregarded. If all
of a Participant’s Years of Service are disregarded pursuant to this subsection (b), such Participant will be treated as a new Employee for purposes of this Article, and will become a Participant in accordance with Plan section 2.01.

  
 (2) Prior Service Not Disregarded. If
a Participant’s Years of Service may not be disregarded pursuant to this subsection (b), such Participant shall continue to participate in the Plan, or, if terminated, shall participate immediately upon reemployment. 
  
 (c) Military Leave. A Participant who is reemployed after an absence
from employment due to Military Leave which is less than five years in the aggregate and whose reemployment satisfies the conditions required under USERRA shall be treated as not having incurred a Break in Service as a result of a period or periods
of Military Leave. 
  
 2.04. Transferred Participants 
  
 (a) Loss of Employee Status. A Participant who (i) remains in the
employ of an Employer but ceases to be an Eligible Employee or (ii) transfers to another Employer or to an Affiliated Employer which does not participate in the Plan, shall not be deemed to have “terminated employment” for purposes of this
Plan until he is no longer employed by an Employer or any Affiliated Employer. 
  
 (b) Employee Status. Notwithstanding Plan section 2.01, an individual who is originally employed by an Employer or an Affiliated Employer other than as an Employee or by non-participating Affiliated Employer
shall be eligible to become a Participant on the date he is employed as an Employee; provided, however, prior service of individuals excluded under Plan subsections 1.23(b)(ii), (iii) and (iv) shall not be recognized for this purpose. Upon becoming
a Participant such an individual may commence making Participant Contributions as soon as administratively practicable following his enrollment in accordance with Plan section 2.02. 
  
 2.05. Termination of Participation 
  
 A Participant’s participation shall terminate, subject to Plan section 2.04(a), on the date he terminates employment with the Employer and all
Affiliated Employers unless the Participant is entitled to benefits under the Plan, in which event his participation shall continue for purposes of the investment, earnings allocation and distribution provisions until his benefits are fully
distributed. 
  

			
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 ARTICLE III 
 CONTRIBUTIONS 
  
 3.01. Pre-Tax
Contributions 
  
 (a) In General. A Participant may
elect, in a manner prescribed by the Administrator, to reduce his Compensation payable while an Employee by not less than 1% and not more than 45%, in multiples of 1%, and have that amount contributed to the Plan by the Employer as 401(k)
Contributions in a manner to be determined by the Administrator. However, if the sum of the percentages of 401(k) Contributions and After-Tax Contributions elected by the Participant would exceed 50%, then the affected Participant must first reduce
the Participant’s Contributions under Plan section 3.02 and then under this Plan section 3.01, so that such sum equals 50%. 401(k) Contributions shall be promptly paid to the Trustee and in no event later than the 15th business day of the month following the month in which the Participant would have received such amounts in cash. 401(k)
Contributions shall be limited as provided in Plan sections 3.08 and 3.09 and subsection (b) below. 
  
 (b) Limitations. In no event shall the Participant’s reduction in Compensation and the corresponding 401(k) Contributions made on his or her
behalf by the Employer and the Affiliated Employers in any calendar year cause an Excess Deferral. Such limitation shall be further adjusted in the event the Participant makes a withdrawal on account of hardship under Plan section 7.02(d).

  
 (1) The 401(k) Contributions of a Participant
who is not eligible to make Catch-Up Contributions, as defined in subsection (e) hereof, and whose 401(k) Contributions in a taxable year equal or exceed the applicable dollar limitation set forth in Code section 402(g)(1)(B), shall be converted to
After-Tax Contributions. Effective for Plan Years beginning on and after January 1, 2005, the 401(k) Contributions of a Participant who is eligible to make Catch-Up Contributions, as described in Plan section 3.01(e), and whose 401(k) Contributions
in a taxable year exceed the Code section 402(g)(1)(B) limit, shall be treated as Catch-Up Contributions for the taxable year and thereafter may be recharacterized as After-Tax Contributions. 
  
 (2) Each Participant affected by this subsection (b) shall
be afforded a special opportunity to change or suspend the rate at which he makes Participant or Catch-Up Contributions. Any such change or suspension shall not count as a change or suspension for purposes of Plan section 3.07. As of the first pay
period of the following calendar year, the Participant’s election of 401(k) Contributions shall again become effective in accordance with his election as in effect before application of this subsection (b). The Administrator shall establish
such rules as it deems advisable to implement this subsection (b). 
  
 (c) Excess Deferrals. If a Participant makes 401(k) Contributions under another Defined Contribution Plan for any calendar year and those contributions when added to his 401(k) Contributions under this Plan cause an Excess Deferral
for that calendar year, the Participant may allocate all or a portion of such Excess Deferral to this Plan. In that event, the 

  

			
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Excess Deferrals, with Earnings thereon, as allocated shall be returned to the Participant no later than the April 15 following the end of the calendar year
in which the Excess Deferrals were made. However, the Plan shall not be required to return Excess Deferrals unless the Participant notifies the Administrator, in writing, by March 1 of that following calendar year of the amount of the Excess
Deferrals allocated to this Plan. 
  
 The amount of any Excess
Deferrals to be returned under this subsection (c) for any calendar year shall be reduced by any Excess Contributions previously returned to the Participant under Plan section 3.08(b) for the Plan Year beginning in that calendar year. In the event
any 401(k) Contributions returned under this subsection (c) were matched under Plan section 3.03, the corresponding Employer Matching Contributions, with Earnings thereon, shall be returned to the Participant. 
  
 (d) Catch-Up Contributions. Any Employee who is eligible to make
401(k) Contributions under the Plan and who will have attained age 50 by the end of the applicable tax year shall be eligible to make Catch-Up Contributions in accordance with, and subject to the limitations of, Code section 414(v) and the
regulations thereunder. Such Catch-Up Contributions shall not be taken into account for purposes of the provisions of the Plan implementing the required limitations of Code sections 402(g) and 415. The Plan shall not be treated as failing to satisfy
the provisions of the Plan implementing the requirements of Code sections 401(a)(4), 401(a)(30), 401(k)(3), 401(k)(11), 402(h), 403(b), 408(a), 408(b), 408(k), 408(p), 410(b), 416, or 457(b)(2), as applicable, as a result of such contributions.
Catch-Up Contributions under this subsection (d) shall not be eligible for and will not receive Employer Matching Contributions. Only otherwise eligible Participants who have (i) made the maximum 401(k) Contributions under Plan section 3.01(a); (ii)
made 401(k) Contributions equal to the Code section 402(g) applicable dollar limit; or (iii) had 401(k) Contributions limited by the Actual Deferral Percentage Test in Plan section 3.08 for such Plan Year, shall be eligible to make Catch-Up
Contributions for such Plan Year. 
  
 3.02. After-Tax Contributions

  
 Each Participant may also elect, in a manner prescribed
by the Administrator, to make After-Tax Contributions of up to 10% of his Compensation while an Employee. However, if the sum of the percentages of 401(k) Contributions and After-Tax Contributions elected by the Participant would exceed 50%, then
the affected Participant must first reduce the Participant’s Contributions under this Plan section 3.02 and then under Plan section 3.01, so that such sum equals 50%. After-Tax Contributions shall be made through payroll deductions in a manner
to be determined by the Administrator and shall be promptly paid to the Trustee and in no event later than the 15th
business day of the month following the month in which the Participant would have received such amounts in cash. After-Tax Contributions are not eligible for and do not receive Employer Matching Contributions. 
  
 3.03. Employer Matching Contributions 
  
 (a) Employer Discretion. Employer Matching Contributions for a
payroll period or Plan Year shall be at the discretion of the Board of Directors or its delegate. 
  

			
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 (b) Allocation. Employer Matching Contributions, if any, shall be a percentage declared by the
Board of Directors or its delegate. Employer Matching Contributions shall be made either in (i) full and/or fractional shares of HomeBanc Corp. Stock or (ii) cash to be invested in full and/or fractional shares of HomeBanc Corp. Stock. Employer
Matching Contributions shall be allocated to a Participant’s Match Account. Employer Matching Contributions shall be made only with respect to 401(k) Contributions up to 6% of a Participant’s Compensation (the “Matching
Percentage”). Employer Matching Contributions shall be allocated for the relevant payroll period or Plan Year and shall be paid to the Trustee as soon as practicable. To the extent Employer Matching Contributions are made for a relevant payroll
period that is shorter than the Plan Year, and the Employer Matching Contribution is limited based on the Participant’s Compensation for the relevant payroll period, Employer Matching Contributions shall be “trued up” after the close
of the Plan Year to make up any difference between the Employer Matching Contributions already made and the Employer Matching Contributions the Participant otherwise is entitled to receive with respect to his 401(k) Contributions compared to the
Participant’s Compensation for the Plan Year. 
  
 3.04. Profit Sharing
Contributions 
  
 (a) Employer Discretion. Profit
Sharing Contributions for any Plan Year shall be at the discretion of the Board of Directors or its delegate. 
  
 (b) Allocation. Profit Sharing Contributions shall be allocated at least annually but more frequently as determined by the Board of Directors or
its delegate to the Profit Sharing Accounts of eligible Participants. Profit Sharing Contributions shall not exceed 1% of the statutory compensation for such Plan Year under Code section 414(q)(1) (adjusted for cost-of-living at the same time and
same manner as under Code section 415(d)). A Participant must be an Employee on the applicable allocation date and have completed 300 Hours of Service for the relevant Plan Year, unless the Participant has terminated employment during such Plan Year
as result of death, retirement or disability. Employer Profit Sharing contributions shall be allocated pro rata based on each eligible Participant’s Compensation (as of a date selected by the Plan Administrator preceding the allocation date) to
the total of all eligible Participants’ Compensation as of such date. Profit Sharing Contributions shall be made either in (i) full and/or fractional shares of HomeBanc Corp. Stock or (ii) cash to be invested in full and/or fractional shares of
HomeBanc Corp. Stock. 
  
 3.05. Rollover Contributions and Transfers

  
 (a) Rollover Contributions. Without regard to any
limitations on contributions set forth in Plan section 3.09 or limitations on Participant Contributions set forth in Plan section 3.02, the Plan may receive from an Employee, in cash or in such other property as may be acceptable to the
Administrator and the Trustee, any amount previously received by him from a conduit IRA, a qualified Code section 401(k) Plan or a Code section 403(b) plan, provided that such amount is eligible for rollover treatment to a qualified trust in
accordance with Code section 402(a)(5) and the Employee provides evidence satisfactory to the Administrator that such amount qualifies for rollover treatment. The Rollover Contribution must be paid to the Trustee on or before the 60th day after the day it was received by the Participant. 
  

			
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 (b) Direct Transfers. The Plan may accept trustee to trustee transfers from other Defined
Contribution Plans maintained by an Employer or an Affiliated Employer. All amounts shall be invested in accordance with the Participant’s investment election as though such amounts were contributions described in Plan section 4.02(b). Once
allocated, amounts transferred shall be subject to all rules regarding the Accounts and Investment Funds in which such amounts have been placed. 
  
 3.06. USERRA Contributions 
  
 (a) Restoration Contributions. An Employee who is reemployed by an Employer after a period of Military Leave and whose reemployment satisfies the
provisions of USERRA shall be entitled to make 401(k) Restoration Contributions, After-Tax Restoration Contributions, and Catch-Up Restoration Contributions to the Plan during the Account Restoration Period as set forth below. Further, such
Employee shall be entitled to Profit-Sharing Contributions and/or Employer Matching Contributions by his or her Employer equal to the amount the Employer would have contributed on behalf of the Employee had the Employee not incurred Military Leave
and had the Employee’s 401(k) Restoration Contributions actually been made during the period of Military Leave to which such Employer Matching Contributions relate. Earnings and forfeitures shall not be considered in determining the
Employer’s obligation under this Plan section. 
  
 (b)
401(k) Restoration Contributions. 401(k) Restoration Contributions are contributions made to the Plan by an Employer, at the election of an Employee in lieu of Compensation and pursuant to a salary reduction election or other mechanism. An
Employee’s 401(k) Restoration Contributions shall not exceed the amount of Compensation that the Employee could have deferred under the Plan during his Military Leave had the Employee remained employed by the Employer during the Military Leave.
A Participant who makes contributions under subsection (f) below may not defer against that same income under this subsection (b). 401(k) Restoration Contributions may be in addition to any other contributions, including 401(k) Contributions, that
the Employee may make to the Plan upon his return from Military Leave. 
  
 (c) After-Tax Restoration Contributions. An Employee may make After-Tax Restoration Contributions to the Plan totaling an amount not greater than the After-Tax Contributions the Employee could have made to the Plan had the Employee
not incurred a period of Military Leave. After-Tax Restoration Contributions may be in addition to any other contributions, including After-Tax Contributions, that the Employee may make to the Plan upon his return from Military Leave. 
  
 (d) Catch-Up Restoration Contributions. An Employee may make Catch-Up
Restoration Contributions to the Plan totaling an amount not greater than the Catch-Up Contributions the Employee could have made to the Plan had the Employee not incurred a period of Military Leave. Catch-Up Restoration Contributions may be in
addition to any other contributions, including Catch-Up Contributions, that the Employee may make to the Plan upon his return from Military Leave. 
  

			
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 (e) Account Restoration. Notwithstanding any provision of the Plan to the contrary, and in
addition to any other contributions to the Plan, an Employee may cause 401(k) Restoration Contributions, After-Tax Restoration Contributions, and Catch-Up Restoration Contributions to be made on his behalf only during the Account Restoration Period.

  
 (f) Account Restoration Period. The duration of a
Participant’s Account Restoration Period shall equal the lesser of (i) the product of three and the duration of the Military Leave and (ii) five years. The Account Restoration Period commences on the date the Participant becomes reemployed by
an Employer as an Employee following Military Leave. 
  
 (g)
Other Contributions. Notwithstanding the above, an Employer that continues part or all of a Participant’s Compensation during part or all of a period of Military Leave may allow such Participant to continue to make 401(k) or Catch-Up
Contributions under Plan section 3.01 or After-Tax Contributions under Plan section 3.02. Such 401(k) Contributions may be matched by the Employer in accordance with Plan section 3.03. An Employer’s decision to continue part or all of a
Participant’s Compensation shall be nondiscriminatory and shall apply to all Participants similarly situated. 
  
 3.07. Change or Suspension of Contributions 
  
 (a) Automatic Changes. The percentages of Compensation designated by a Participant under Plan sections 3.01 and 3.02 shall automatically apply to
increases and decreases in his Compensation. 
  
 (b)
Participant-Initiated Changes. Subject to the provisions of Plan sections 3.01 and 3.02, a Participant may elect to change, suspend or reinstate the percentage of his authorized payroll deduction and/or Compensation reduction, by giving prior
notice of such change in a manner approved by the Administrator. The revised election shall become effective as soon as administratively practicable and shall be effective only with respect to contributions made thereafter. 
  
 3.08. Nondiscrimination Limitations 
  
 (a) Limitation Based on Actual Deferral Percentage Based on Prior Year
Testing: The Actual Deferral Percentage for a Plan Year for Participants who are Highly Compensated Employees and the prior Plan Year’s Actual Deferral Percentage for Participants who were Non-Highly Compensated Employees for the prior Plan
Year may not exceed the greater of (1) or (2) where: 
  
 (1) is the Actual Deferral Percentage for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the prior Plan Year’s Actual Deferral Percentage for Participants who were Non-Highly
Compensated Employees for the prior Plan Year multiplied by 1.25; or 
  

			
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 (2) is the Actual Deferral Percentage for a Plan Year for Participants who are Highly
Compensated Employees for the Plan Year shall not exceed the prior Plan Year’s Actual Deferral Percentage for Participants who were Non-Highly Compensated Employees for the prior Plan Year multiplied by 2.0, provided that the Actual Deferral
Percentage for Participants who are Highly Compensated Employees does not exceed the Actual Deferral Percentage for Participants who were Non-Highly Compensated Employees in the prior Plan Year by more than 2 percentage points. 
  
 This election to use prior year testing can only be changed if the Plan meets the
requirements for changing to current year testing set forth in Notice 98-1 (or superseding guidance). 
  
 (b) Avoiding or Correcting Excess Contributions: The Administrator may implement rules limiting the 401(k) Contributions which may be made on
behalf of some or all Highly Compensated Employees so that the limitations of subsection (a) are satisfied. If the Administrator determines that the limitations under subsection (a) have been exceeded in any Plan Year, the following provisions shall
apply: 
  
 (1) The amount of 401(k) Contributions
made on behalf of some or all Highly Compensated Employees shall be reduced as follows: 
  
 (A) The 401(k) Contributions of the Highly Compensated Employee with the highest dollar amount of 401(k) Contributions shall be reduced by
the amount required to cause that Highly Compensated Employee’s 401(k) Contributions to equal the dollar amount of the 401(k) Contributions of the Highly Compensated Employee with the next highest dollar amount of 401(k) Contributions. This
amount is then distributed to the Highly Compensated Employee with the highest dollar amount. If a lesser reduction, when added to the total dollar amount already distributed under this step, would equal the total Excess Contributions, the lesser
reduction amount is applied. 
  
 (B) This process
in step (A) shall be repeated until the total Excess Contributions have been distributed. 
  
 (2) 401(k) Contributions subject to reduction under this subsection (b) (“Excess Contributions”), together with Earnings, shall
be paid to the Participant before the close of the Plan Year following the Plan Year in which the Excess Contributions were made, and to the extent practicable within 2 1/2 months of the close of the Plan Year in which the Excess Contributions were made. However, any Excess Contributions to be returned under this subsection (b) for any Plan Year
shall be reduced by any Excess Deferrals previously returned to the Participant under Plan section 3.01(c) for the calendar year ending within that Plan Year. In the event any Excess Contributions returned under this subsection (b) were matched by
Employer contributions, such corresponding Employer Matching Contributions, with Earnings thereon, shall be distributed to the Participant. 
  

			
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 If these distributions are made, the Plan is treated as meeting the nondiscrimination test of Code section 401(k)(3)
regardless of whether the Actual Deferral Percentage test, if recalculated after distributions, would satisfy Code section 401(k)(3). 
  
 If, and only if, the Administrator adopts appropriate rules to implement recharacterization of 401(k) Contributions, the Participant may elect, in lieu of
a return of the Excess Contributions, to recharacterize the Excess Contributions to the Plan as After-Tax contributions for the Plan Year in which the Excess Contributions were made. Notwithstanding the previous sentence, if such Participant is
eligible to make Catch-Up Contributions under Plan section 3.01(d) and Code section 414(v), any Excess Contribution shall be recharacterized as a Catch-Up Contribution for the Plan Year in which the Excess Contribution was made. Recharacterized
Excess Contributions shall be subject to the provisions of the Plan as though the Excess Contributions were Catch-Up Contributions or After-Tax Contributions, as appropriate, except that such contributions shall be considered Participant
Contributions made in the Plan Year to which the Excess Contributions relate for purposes of subsection (c) below. The Participant’s election to recharacterize Excess Contributions shall be made within 21⁄2 months of the close of the Plan
Year in which the Excess Contributions were made or within such shorter period as the Administrator may prescribe. In the absence of a timely election by the Participant, the Administrator shall return his Excess Contributions. 
  
 (c) Limitation Based on Contribution Percentage for Prior Year Testing:
The Contribution Percentage for a Plan Year for Participants who are Highly Compensated Employees and the prior Plan Year’s Contribution Percentage for Participants who were Non-Highly Compensated Employees for the prior Plan Year may not
exceed the greater of (1) or (2) where: 
  
 (1)
is the Contribution Percentage for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the prior Plan Year’s Contribution Percentage for Participants who were Non-Highly Compensated Employees for
the prior Plan Year multiplied by 1.25; or 
  
 (2) is the Contribution Percentage for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the prior Plan Year’s Contribution Percentage for Participants who were Non-Highly Compensated
Employees for the prior Plan Year multiplied by 2.0, provided that the Contribution Percentage for Participants who are Highly Compensated Employees does not exceed the Contribution Percentage for Participants who were Non-Highly Compensated
Employees in the prior Plan Year by more than 2 percentage points. 
  
 This
election to use prior year testing can only be changed if the Plan meets the requirements for changing to current year testing set forth in Notice 98-1 (or superseding guidance). The ESOP and non-ESOP components of the Plan shall be treated as a
single plan for testing purposes. 
  

			
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 (d) Avoiding or Correcting Excess Aggregate Contributions: If the Administrator determines that
the limitations under subsection (c) have been exceeded in any Plan Year, the following provisions shall apply: 
  
 (1) The amount of After-Tax Contributions and Employer Matching Contributions made by or on behalf of some or all Highly Compensated
Employees in the Plan Year shall be reduced as follows: 
  
 (A) The After-Tax Contributions and Employer Matching Contributions of the Highly Compensated Employee with the highest total dollar amount of such contributions shall be reduced by the amount required to cause that
Highly Compensated Employee’s After-Tax Contributions and Employer Matching Contributions to equal the dollar amount of such contributions of the Highly Compensated Employee with the next highest total dollar amount of such contributions. This
amount is then distributed to the Highly Compensated Employee with the highest dollar amount. If a lesser reduction, when added to the total dollar amount already distributed under this step, would equal the total Excess Aggregate Contributions, the
lesser reduction amount is applied. 
  
 (B) This
process in step (A) shall be repeated until the total Excess Aggregate Contributions have been distributed. 
  
 (2) Any After-Tax Contributions and Employer Matching Contributions subject to reduction under this subsection (d) (“Excess Aggregate
Contributions”), together with Earnings, shall be reduced and allocated in the following order: 
  
 (A) So much of the After-Tax Contributions and corresponding Employer Matching Contributions as shall be necessary to equal the balance of
the Excess Aggregate Contributions, together with the Earnings attributable to those contributions, shall be paid to the Participant. 
  
 (3) Any repayment of Excess Aggregate Contributions shall be made before the close of the Plan Year following the Plan Year for which
those contributions were made, and to the extent practicable shall be made within 21⁄2 months of the close of the Plan Year in which the contributions were made. 
  
 If these distributions are made, the Plan is treated as meeting the nondiscrimination test of Code section 401(m)(2) regardless of whether
the Contribution Percentage test, if recalculated after distributions, would satisfy Code section 401(m)(2). 
  
 (e) Participation of Highly Compensated Employees in Multiple Plans: If any Highly Compensated Employee is a Participant of another Defined
Contribution Plan of an Employer or an Affiliated Employer under which 401(k) contributions or employer matching contributions are made on behalf of the Highly Compensated Employee or under which the Highly Compensated Employee makes Participant
contributions, the Administrator shall implement rules, which shall be uniformly applicable to all employees similarly situated, to take into account all such contributions under all such plans in applying the limitations of this Plan section.

  

			
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 (f) Qualified Nonelective Contributions: (i) The Board of Directors may authorize that
“qualified nonelective contributions,” as defined in Code section 401(m)(4)(C), shall be made for a Plan Year, subject to applicable regulations. Such contributions shall be allocated in such amounts as the Administrator shall determine,
to Non-Highly Compensated Employees. Qualified nonelective contributions shall be 100% nonforfeitable when made and shall not be available for withdrawal under Article VII. The Administrator shall establish such separate accounts as may be necessary
to implement this subsection. If the Administrator determines that it is advisable in order to prevent a violation of subsections (a) or (c) above, it may include 
  
 (1) some or all of the qualified nonelective contributions made for the Plan Year for purposes of the tests
described in subsection (a) above and 
  
 (2)
some or all of such qualified nonelective contributions and some or all of the 401(k) Contributions made for the Plan Year for purposes of the tests described in subsection (c) above; provided the requirements of the applicable regulations are met.

  
 3.09. Maximum Annual Additions 
  
 (a) In General. For Limitation Years beginning after December 31,
2001, the Annual Addition to a Participant’s Accounts for any Limitation Year, when added to the Participant’s Annual Addition for that Plan Year under any other Defined Contribution Plan of an Employer or an Affiliated Employer, shall not
exceed an amount which is equal to the lesser of (i) 100% of his aggregate Statutory Compensation for that Plan Year or (ii) $40,000 (as adjusted by the Secretary of the Treasury for increases in the cost of living). 
  
 (b) Correction of Excess Annual Additions. If for any Limitation Year,
as a result of a reasonable error in estimating a Participant’s annual Compensation, or such other facts and circumstances as the Internal Revenue Service will permit, the Annual Addition to a Participant’s Accounts, prior to the
application of the limitation set forth in subsection (a) above, exceeds that limitation, the amount of contributions credited to the Participant’s Accounts in that Plan Year shall be adjusted to the extent necessary to satisfy that limitation
in accordance with the following order of priority: 
  
 (1) The Participant’s After-Tax Contributions shall be reduced to the extent necessary. The amount of the reduction attributable to the Participant’s After-Tax Contributions shall be returned to the Participant, together with any
investment earnings on those contributions to be returned. 
  
 (2) The Profit Sharing Contributions allocated to the Participant under Plan section 3.04 shall be reduced and the amount of the reduction shall be applied to reduce subsequent contributions of the Employer.

  
 (3) The Employer Matching Contributions
allocated to the Participant under Plan section 3.03 shall be reduced and the amount of the reduction shall be applied to reduce subsequent contributions of the Employer. 
  

			
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 (4) The Participant’s 401(k) Contributions under Plan section 3.01 shall be reduced
and held in a suspense account for the Participant and shall be allocated to his 401(k) Account in the next calendar year (and succeeding years, as necessary) provided that if a Participant’s employment terminates, any amount remaining in the
suspense account for his benefit after all permitted allocations to his 401(k) Account have been made shall be applied to reduce subsequent contributions of the Employer. 
  
 3.10. Return of Contributions 
  
 (a) Disallowance of Deductions. If all or part of an Employer’s deductions under Code section 404 for contributions to the Plan are disallowed
by the Internal Revenue Service, the portion of the contributions to which that disallowance applies shall be returned to the Employer without interest but reduced by any investment loss attributable to those contributions. The return shall be made
within one year after the disallowance of deduction. 
  
 (b)
Mistake of Fact. An Employer may recover without interest the amount of its contributions to the Plan made on account of a mistake of fact, reduced by any investment loss attributable to those contributions, if recovery is made within one
year after the date of those contributions. 
  
 (c) 401(k)
Contributions. In the event that 401(k) Contributions made under Plan section 3.01(a) are returned to the Employer in accordance with the provisions of this Plan section 3.10 the elections to reduce Compensation which were made by Participants
on whose behalf those contributions were made shall be void retroactively to the beginning of the period for which those contributions were made. The 401(k) Contributions so returned shall be distributed in cash to those Participants for whom those
contributions were made. 
  
 3.11. Contributions Not Contingent Upon Profits

  
 The Employer shall make all contributions to the Plan
without regard to the existence or the amount of current and accumulated earnings and profits. Notwithstanding the foregoing, however, this Plan is designed to qualify as a “profit-sharing plan” for all purposes of the Code. 
  
 3.12. Limitation Based on Deductibility 
  
 In no event shall an Employer’s contributions under this Article III
for any Plan Year exceed the amounts deductible under Code section 404. 
  
 3.13. Form of Contributions 
  
 (a) Employer
contributions under Plan sections 3.03 and 3.04 shall be paid to the Trustee at such times as the Employer may determine; provided, however, that all such contributions must be paid to the Trustee no later than the time prescribed by law, including
permitted extensions of time, for the filing of the Employer’s federal income tax return for the fiscal year with respect to which such contributions are made. Employer contributions may be paid to the Trustee in cash, in shares of HomeBanc
Corp. Stock acquired on the open market (but 

  

			
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not Treasury shares or authorized but unissued shares), or other property, as determined by HomeBanc Corp. in its sole discretion. All Employer contributions
referencing a certain percentage of pay or contributions shall also mean a number of shares of HomeBanc Corp. Stock of an equivalent value. If and to the extent that Employer contributions are made in shares of HomeBanc Corp. Stock, the value of
such shares shall be determined as in subsection (b) below. 
  
 (b) The value of HomeBanc Corp. Stock on the date of contribution shall be the closing price on such date of the HomeBanc Corp. Stock prevailing on the New York Stock Exchange. 
  

			
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 ARTICLE IV 
 INVESTMENTS 
  
 4.01. Investment Funds

  
 (a) Accounts. Except as otherwise specially
provided, Participant Accounts shall be invested in the HomeBanc Corp. Stock Fund, First Horizon National Corporation f/k/a First Tennessee Bank Stock Fund, or one or more of the Investment Funds selected from time to time by the Fiduciary
Committee. 
  
 (b) Cash Levels. With respect to the
HomeBanc Corp. Stock Fund and the First Horizon National Corporation f/k/a First Tennessee Bank Stock Fund, the Trustee shall keep only such amounts of cash as it, in its sole discretion, deems necessary or advisable to perform liquidity functions
with respect to the Funds, all within the limitations specified in the trust or custody agreement. 
  
 (c) Earnings. Except as otherwise specifically provided, dividends, interest, and other distributions received on the assets held by the Trustee
for each of the Funds shall be reinvested in the respective Fund. 
  
 (d) Changes. The Fiduciary Committee may add, drop or change Investment Funds for which it is responsible without amending the Plan. 
  
 4.02. Investment of Participants’ Accounts 
  
 (a) 401(k) and After-Tax Accounts. A Participant shall make investment elections covering his 401(k) and After-Tax Accounts in accordance with one
of the following options: 
  
 (1) 100% in any one
Investment Fund; or 
  
 (2) in more than one of
such Investment Funds allocated in multiples of 1%. 
  
 Investment
Funds for purposes of this Plan subsection 4.02(a) shall not include the HomeBanc Corp. Stock Fund or the First Horizon National Corporation f/k/a First Tennessee Bank Stock Fund. 
  
 In the event a Participant does not make an investment election, or fails to do so in a timely manner, his 401(k) and
After-Tax Accounts shall be invested in an Investment Fund designated by the Fiduciary Committee. 
  
 (b) Rollover Account. A Participant shall make a separate investment election with respect to his Rollover Account in accordance with one of the
following options: 
  
 (1) 100% in any one
Investment Fund; or 
  
 (2) in more than one of
such Investment Funds allocated in multiples of 1%. 
  

			
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 Investment Funds for purposes of this Plan subsection 4.02(b) shall not include the HomeBanc Corp. Stock
Fund or the First Horizon National Corporation f/k/a First Tennessee Bank Stock Fund. 
  
 In the event a Participant does not make an investment election, or fails to do so in a timely manner, his rollover contribution shall be invested in the same manner as the Participant’s 401(k) and After-Tax
Accounts pursuant to Plan section 4.02(a). 
  
 (c) Employer
Match Account and Profit Sharing Account. Employer Matching Contributions and Profit Sharing Contributions shall be invested in the HomeBanc Corp. Stock Fund, subject to Plan Section 4.05(b)(1). 
  
 (d) Administrative Rules. In the event the Fiduciary Committee adds,
drops or changes an Investment Fund pursuant to Plan section 4.01(d), the Fiduciary Committee shall establish, consistent with this Plan section 4.02, reasonable rules with respect to the Plan’s then available Investment Funds. 
  
 4.03. Responsibility for Investments 
  
 Each Participant is solely responsible for the selection of his or her
investment options. The Trustee, the Administrator, the Fiduciary Committee, the Employer, and the officers, supervisors and other employees of the Employer are not empowered to advise a Participant as to the manner in which his or her Accounts
shall be invested. The fact that an Investment Fund is available to Participants for investment under the Plan shall not be construed as a recommendation for investment in that Investment Fund. 
  
 4.04. Change of Election 
  
 A Participant may change his election under Plan section 4.02 as desired. To
change his election, a Participant must give notice in a manner prescribed by the Administrator. Any change in the Participant’s investment elections under Plan section 4.02 shall be applied uniformly among the Participant’s 401(k),
After-Tax and Rollover Accounts. The changed election shall become effective as soon as administratively feasible and shall be effective only with respect to subsequent contributions. 
  
 4.05. Reallocation of Accounts Among the Funds 
  
 (a) In General. A Participant may elect to reallocate his 401(k) Account, After-Tax Account and Rollover Account, as
though such Accounts constituted a single Account, among one or more Investment Funds other than the HomeBanc Corp. Stock Fund or the First Horizon National Corporation f/k/a First Tennessee Bank Stock Fund in multiples of 1%. Any reallocation under
this Plan subsection 4.05(a) shall be applied uniformly among the Participant’s 401(k), After-Tax and Rollover Accounts. 
  
 (b) HomeBanc Corp. and First Horizon National Corporation f/k/a First Tennessee Bank Stock Funds. 
  

			
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 (1) Subject to such restrictions as may be imposed under Plan subsection 4.05(c), a
Participant may move his Employer Match and Profit Sharing Accounts into or out of the HomeBanc Corp. Stock Fund at any time. Cash dividends received on HomeBanc Corp. Stock shall be invested in the HomeBanc Corp. Stock Fund, subject to a
Participant’s right to move his Employer Match and Profit Sharing Accounts into or out of the HomeBanc Corp. Stock Fund at any time. 
  
 (2) Subject to such restrictions as may be imposed under Plan subsection 4.05(c), a Participant may transfer his Accounts invested in the
First Horizon National Corporation f/k/a First Tennessee Bank Stock Fund out of the First Horizon National Corporation f/k/a First Tennessee Bank Stock Fund at any time. Amounts moved out of the First Horizon National Corporation f/k/a First
Tennessee Bank Stock Fund may not be reinvested therein. Cash dividends received on First Horizon National Corporation f/k/a First Tennessee Bank Stock will be invested pursuant to Plan subsection 4.05(a). 
  
 (c) Limitations. A Participant may elect to reallocate his Accounts
within Plan limitations. The Administrator may, however, from time to time in its sole discretion impose restrictions on the number or timing of such transactions, impose suspension periods or transaction fees deemed appropriate to eliminate or
discourage market timing or other trading practices deemed to have or which may have an adverse impact on other Plan Participants or otherwise violate the law or the policies of an investment option available under the Plan. Reallocations will be
processed in accordance with policies and procedures prescribed by the Administrator and applied in a uniform and nondiscriminatory manner to all affected Plan Participants. 
  
 (d) Administrative Rules. The Fiduciary Committee shall, consistent with this Plan section 4.05, establish reasonable
rules with respect to the Plan’s then available Investment Funds for which it is responsible when it adds, drops or changes an Investment Fund pursuant to Plan section 4.01. 
  
 4.06. Limitations Imposed by Contracts 
  
 Notwithstanding anything in this Article to the contrary, any contributions or Accounts invested in a stable value or similar fund shall be subject to any
and all terms of the contracts which compose said Fund, including any limitations placed on the exercise of any rights otherwise granted to a Participant under any other provision of this Plan with respect to such contributions or Accounts.

  

			
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	 	35

 ARTICLE V 
 VALUATION OF THE ACCOUNTS 
  
 5.01.
Valuation 
  
 The Trustee shall value the Investment Funds on
each business day of the Plan Year that United States’ financial markets are open. Participant Accounts shall be allocated the proportionate share of the increase or decrease in the fair market value of each Fund in which the Participant’s
Accounts are invested on each Valuation Date. Whenever an event requires a determination of the value of the Participant’s Accounts, the value shall be computed as of the Valuation Date coincident with or immediately preceding such event,
subject to the provisions of Plan section 5.02. 
  
 5.02. Discretionary Power
of the Fiduciary Committee 
  
 The Fiduciary Committee
reserves the right to change from time to time the procedures used in valuing the Accounts or crediting (or debiting) the Accounts, or to change the Valuation Date used to determine the value of a Participant’s Account, in order to effect a
distribution if it believes, after due deliberation, that such an action is justified in that it results in a more accurate reflection of the fair market value of assets. 
  
 5.03. Statement of Accounts 
  
 No less frequently than once a year, each Participant shall be furnished a statement setting forth the value of his Accounts. 
  

			
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 ARTICLE VI 
 VESTED PORTION OF ACCOUNTS 
  
 6.01.
After-Tax Account 
  
 A Participant’s interest in his
After-Tax Account is at all times fully vested and nonforfeitable. 
  
 6.02.
Rollover Account 
  
 A Participant’s interest in his
Rollover Account is at all times fully vested and nonforfeitable. 
  
 6.03.
401(k) Account 
  
 A Participant’s interest in his
401(k) Account is at all times fully vested and nonforfeitable. 
  
 6.04.
Employer Match and Profit Sharing Accounts 
  
 (a) Each
Participant who dies, becomes Disabled, or reaches Normal Retirement Age while in the employ of the Employer shall have a fully vested, nonforfeitable interest in his Employer Match and Profit Sharing Accounts. 
  
 (b) Otherwise, a Participant shall have a vested, nonforfeitable interest in
his Employer Match and Profit Sharing Accounts based on his Years of Service as following: 
  

				
	 Years of Service

	  	Vested
Percentage

	 
	 Less than 1
	  	0	%
	 1
	  	25	%
	 2
	  	50	%
	 3
	  	75	%
	 4
	  	100	%

  
 6.05. Crediting Years of Service
for Vesting 
  
 (a) Except as provided in this Plan section
and Plan section 6.06, all of an individual’s Years of Service are counted to determine the vested interest in a Participant’s Employer Match and Profit Sharing Accounts. 
  
 (1) Service with the Employer before the Employer maintained this Plan or a predecessor plan shall be
excluded. Notwithstanding the preceding, Years of Service with First Horizon National Corporation f/k/a First Tennessee Bank shall be recognized for purposes of the Plan to the extent such hours would be recognized hereunder if First Horizon
National Corporation f/k/a First Tennessee Bank had been an Affiliated Employer. 
  

			
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 (b) A Participant’s vested interest in his Employer Match and Profit Sharing Accounts will be
determined based on his Years of Service. 
  
 6.06. Vesting Break in Service
Rules 
  
 A Participant’s Years of Service for vesting
purposes under Plan section 6.04 shall be computed subject to the following limitations and restrictions: 
  
 (a) If an Employee returns to service for an Employer after incurring a Break in Service but before incurring five consecutive one-year Breaks in Service,
he earns Years of Service for both his service before the Break in Service and his service after the Break in Service for purposes of determining his nonforfeitable interest in his pre-break and post-break Accounts. 
  
 (b) If an Employee returns to service with an Employer after incurring five
or more consecutive one-year Breaks in Service, all Years of Service after such Breaks in Service will be disregarded for the purpose of vesting in his pre-break Account. For purposes of determining such Participant’s nonforfeitable interest in
his post-break Account, he retains his Years of Service for his service before the Breaks in Service only if either of the following applies. 
  
 (1) He had a nonforfeitable interest in his Matching or Profit Sharing Accounts at the time of his separation from service. 
  
 (2) At the time he returns to service for an Employer, the
number of his consecutive one-year Breaks in Service is less than his Years of Service. 
  
 6.07. Forfeitures 
  
 (a) When a Participant
terminates his employment, the provisions of this Plan section shall apply to any forfeitable portion of his Employer Match and Profit Sharing Accounts. 
  
 (b) Any forfeitures of Employer Match Contributions and/or Profit Sharing Contributions shall be first used to reduce administrative expenses associated
with the Plan in the Plan Year following such forfeiture. Any forfeitures remaining thereafter shall be used to reduce Employer contributions for the Plan Year following the Plan Year in which the forfeiture occurs. 
  
 (c) The nonvested portion of the Employer Match and Profit Sharing Accounts
of a terminated Participant who receives a distribution from his Employer Match and Profit Sharing Accounts prior to the date on which he completes five consecutive one-year Breaks in Service shall be forfeited as of the Valuation Date coincident
with or immediately following the date of the distribution. If the Participant is later reemployed and resumes participation in the Plan, the value of the nonvested portion of his Employer Match and Profit Sharing Accounts that was forfeited
pursuant to this subsection shall be reinstated to its value as of the date of forfeiture, without adjustment for any subsequent gains or losses of the Trust Fund, if the Participant repays in cash in a lump sum the entire amount distributed to him
before the earlier of five years after the Participant’s reemployment date or the date he incurs five consecutive Breaks in Service following the date of distribution. 
  

			
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 (d) In the case of a terminated Participant whose vested interest in his Employer Match and Profit
Sharing Accounts is zero, such Participant shall be deemed to have received a distribution of such vested Account balance as of the Valuation Date following the Participant’s termination of employment, and the Participant’s nonvested
Account balances shall be forfeited as of such date. If the Participant is later reemployed and resumes participation in the Plan before he has incurred five consecutive Breaks in Service, the value of the nonvested portions of his Employer Match
and Profit Sharing Accounts that was forfeited, if any, pursuant to this subsection shall be reinstated to his Employer Match and Profit Sharing Accounts at their value as of the date of forfeiture. 
  
 (e) Amounts reinstated according to this Plan section may be made, as
directed by the Plan Administrator, from forfeitures as provided in Plan section 6.07 or Employer contributions. 
  
 6.08. Amendment of Vesting Schedule 
  
 (a) If the Plan’s vesting schedule is amended, or the Plan is amended in any way that directly or indirectly affects the computation of a
Participant’s vested percentage in his Account balance or if the Plan is deemed amended by an automatic change to or from a top-heavy vesting schedule, each Participant with at least three Years of Service with the Employer shall be deemed to
have elected the vesting schedule most favorable to him. 
  
 (b)
No amendment to the Plan shall be effective to the extent that it has the effect of decreasing a Participant’s vested percentage in his Account balance. A Plan amendment which has the effect of decreasing a Participant’s vested percentage
in his Account balance or eliminating an optional form of benefit with respect to contributions attributable to service before the amendment shall be treated as reducing a Participant’s Account balance. Furthermore, if the Plan’s vesting
schedule is amended, in the case of an Employee who is a Participant as of the later of the date such amendment is adopted or the date it becomes effective, the nonforfeitable percentage (determined as of such date) of such Employee’s right to
his Employer Match and Profit Sharing Accounts will not be less than his percentage computed under the Plan without regard to such amendment. 
  

			
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 April 1, 2005 Restatement
	 	39

 ARTICLE VII 
 WITHDRAWALS WHILE STILL EMPLOYED 
  
 7.01. In-Service Withdrawals 
  
 (a) After-Tax
Account. A Participant may make a withdrawal of all or part his After-Tax Account. A Participant may withdraw the lesser of (i) the fair market value of such Account valued as of the Valuation Date coincident with or next preceding the date of
distribution or (ii) the amount of his After-Tax Contributions to the Plan and exclusive of any prior withdrawals from such Account. Any amount withdrawn pursuant to this Plan section is charged against the Participant After-Tax Account as of the
date of withdrawal. The distribution shall be paid in a lump sum as soon as administratively practicable. Withdrawals under this Plan subsection 7.01(a) shall be limited to two a year. A Participant may not replace any amount withdrawn under this
subsection. 
  
 (b) Age 591⁄2 Withdrawals. A Participant
who has attained age 591⁄2 may make a full or partial withdrawal of the amount credited to his vested Accounts other than his Rollover Account, if any. Any distribution pursuant to this subsection shall be valued as of the Valuation Date
coinciding with or next preceding the date of distribution. The distribution shall be paid in a lump sum as soon as administratively practicable and shall be made pro rata from his vested Accounts other than his Rollover Account, if any. Withdrawals
under this Plan subsection 7.01(b) shall be limited to two a year. 
  
 (c) Rollover Account. In-service withdrawals from a Participant’s Rollover Account are not permitted. 
  
 7.02. Hardship Withdrawal 
  
 (a) Application for Hardship Withdrawal: A Participant may apply for a hardship withdrawal if he has withdrawn the total amount available for
withdrawal under Plan section 7.01. 
  
 (b) Determination of
Hardship. The Participant must file a request in a manner prescribed by the Administrator in order to receive a withdrawal on account of hardship and must furnish proof of financial hardship in accordance with Plan section 7.02(d), and such
other supporting documentation as may be required under rules prescribed by the Administrator. The Administrator, in its sole discretion and using uniform and nondiscriminatory rules, shall determine whether a withdrawal is allowable on account of
hardship. 
  
 (c) Amount of Hardship Withdrawal: The amount
of the withdrawal cannot exceed the amount reasonably necessary to meet the immediate and heavy financial need of the Participant. The amount may include any amounts necessary to pay any federal, state, or local income taxes or penalties reasonably
anticipated to result from the distribution. The maximum amount that may be withdrawn from the Participant’s 401(k) Account shall be limited to those amounts that can be withdrawn under applicable law in connection with a hardship. 

 

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
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 April 1, 2005 Restatement
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 (d) Deemed Hardship: A distribution is deemed to be on account of an immediate and heavy financial
need of the Participant if the requirements of paragraph (d)(1) are met by the Participant certifying to the Administrator, in such manner as may be prescribed by the Administrator, that the requested withdrawal is necessary to satisfy the financial
need described in paragraph (d)(2). The Participant shall also furnish such supporting documentation as may be required under rules prescribed by the Administrator. Unless the Administrator has actual knowledge to the contrary, the Administrator may
rely upon the Participant’s representation that the requested withdrawal is necessary to meet the Participant’s financial need. 
  
 (1) Certification. The Participant must certify that: 
  
 (A) the Participant has obtained all other currently available distributions (including dividends payable on
the ESOP portion of a Participant’s Accounts but not hardship distributions), and nontaxable (at the time of the loan) loans, currently available under the Plan and all other plans of the Employer and Affiliated Employers; and 
  
 (B) the Plan and all other plans of the Employer and
Affiliated Employers must provide that the Participant’s elective contributions and after-tax contributions will be suspended for at least 6 months after receipt of the hardship distribution. The suspension must apply to all qualified and
non-qualified plans of deferred compensation, including a cash or deferred arrangement that is part of a cafeteria plan within the meaning of Code section 125, other than mandatory employee contribution portion of a defined benefit plan or a health
or welfare plan (including one that is part of a cafeteria plan). 
  
 (2) Financial Need. The Participant must provide documentation that the financial need is on account of one of the following: 
  
 (A) expenses for (or necessary to obtain) medical care that would be deductible under Code section 213(d)
(determined without regard to whether the expenses exceed 7.5% of adjusted gross income) incurred by the Participant, his Spouse or any of his dependents; 
  
 (B) costs directly related to the purchase of a principal residence for the Participant (excluding mortgage payments); 
  
 (C) payment of tuition, related educational fees, and room
and board expenses, for up to the next 12 months of post-secondary education for the Participant, or his Spouse, children, or dependents (as defined in Code section 152, and for taxable years beginning on or after January 1, 2005, without regard to
Code section 152(b)(1), (b)(2), and (d)(1)(B)); 
  
 (D) payments necessary to prevent the eviction of the Participant from his principal residence or foreclosure on the mortgage on that residence; or 
  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
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 April 1, 2005 Restatement
	 	41

 (E) payments for burial or funeral expenses for the Participant’s deceased parent,
Spouse, children, or dependents (as defined in Code section 152, and for taxable years beginning on or after January 1, 2005, without regard to Code section 152(d)(1)(B); or 
  
 (F) expenses for the repair of damage to the Participant’s principal residence that would qualify for
the casualty deduction under Code section 165 (determined without regard to whether the loss exceeds 10% of adjusted gross income); or 
  
 (G) such other deemed immediate and heavy financial needs as may be approved by the Internal Revenue Service through the issuance of
Revenue Rulings, Notices, or other means. 
  
 (e) Order of
Withdrawal. The Participant’s Accounts shall be liquidated pro rata across all Investment Funds in which his vested Account is invested for the purpose of satisfying the hardship withdrawal and from the Participant’s Accounts in such
order as the Administrator may prescribe. 
  
 7.03. Procedures and
Restrictions 
  
 (a) Restrictions. A Participant shall
not be permitted to make a withdrawal unless he is employed by the Employer or an Affiliated Employer. The minimum withdrawal permitted under Plan sections 7.01 and 7.02 shall be $100 or, if less, the total value of the Participant’s vested
Accounts available for a withdrawal. The amount of the withdrawal shall be allocated between and among the Investment Funds in proportion to the value of the Participant’s vested Accounts from which the withdrawal is made in each Investment
Fund as of the date of the withdrawal. A Participant may not obtain more than two in-service withdrawals each under Plan section 7.01(a) and (b) in any Plan year. 
  
 (b) Procedures. To make a withdrawal, a Participant shall give written notice to the Administrator, during such
period and in such manner as the Administrator may prescribe. A withdrawal shall be effective as of the Valuation Date coincident with or next preceding the date on which the withdrawal distribution is made. A Participant may make a hardship
withdrawal at any time. All payments to Participants under this Article shall be made in cash as soon as practicable after the effective date of the withdrawal request. Any distribution made pursuant to Plan sections 7.01 or 7.02 shall be made in a
manner consistent with and satisfying Plan section 9.09 and the notice and consent requirements of Code section 411(a)(11). 
  
 7.04. Dividends on HomeBanc Corp. Stock 
  
 Any dividend paid with respect to shares of HomeBanc Corp. Stock, held in the ESOP component of the HomeBanc Corp. Stock Fund, shall be paid or invested
pursuant to the Participant’s election for such Plan Year in accordance with uniform and nondiscriminatory procedures established by the Administrator, under one of the following methods: 
  
 (a) paid by or on behalf of the Employer in cash to the Participant or his
or her Beneficiaries; 
  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
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 (b) paid by the Employer to the Plan and distributed by the Trustee (or its agent) in cash to the
Participant no later than 90 days after the end of the Plan Year in which paid to the Trustees; or 
  
 (c) paid by the Employer to the applicable Participant’s Account under the Plan and reinvested in HomeBanc Corp. Stock through the HomeBanc Corp.
Stock Fund. 
  
 A Participant who does not make a timely election
to receive the payment of dividends with respect to shares of HomeBanc Corp. Stock held in the ESOP component of the Plan shall be deemed to have elected to have dividends paid by the Employer to the applicable Participant’s Account under the
Plan and reinvested in shares of HomeBanc Corp. Stock through the HomeBanc Corp. Stock Fund. Such election shall remain in effect until affirmatively changed by the Participant. Any change in an election shall apply only to ex-dividend dates
occurring after the date such election is received. 
  
 Dividends
on HomeBanc Corp. Stock represented by units in the HomeBanc Corp. Stock Fund and credited to a Participant’s Accounts that are part of the ESOP component of the Plan which a Participant has elected to receive shall be paid quarterly but in no
event more than ninety (90) days following the end of the Plan Year to which they relate. Such distributions shall be made on a date or dates selected by the Administrator. Actual distributions shall include only the dividends and not any earnings
or appreciation thereon, and, in the case of a decline in value where dividends are invested in HomeBanc Corp. Stock or the HomeBanc Corp. Stock Fund pending distribution, shall not exceed the value of the shares of HomeBanc Corp. Stock or units of
the HomeBanc Corp. Stock Fund in question at the time of the distribution. 
  
 7.05. Limitations on Distributions of 401(k) Contributions 
  
 (a) Notwithstanding any other provision of the Plan, 401(k) and Catch-Up Contributions may not be distributed before one of the following events occur: 
  
 (1) the Participant has died; 
  
 (2) the Participant has become disabled (either Disabled, or disabled within the meaning of Code section
72(m)(7) or under any other definition of disability consistent with Code section 401(k)(2)(B)); 
  
 (3) the Participant has incurred a hardship according to Plan section 7.02; 
  
 (4) the Participant has attained age 591⁄2; 
  
 (5) the Plan terminates without the establishment or
maintenance of a successor qualified plan, other than an employee stock ownership plan (as defined in Code sections 4975(e)(7) or 409, or a simplified employee pension plan, as defined in Code section 408(k)); 
  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
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 April 1, 2005 Restatement
	 	43

 (6) a Participant’s Employer disposes of substantially all of its assets to an
unrelated corporation, within the meaning of Code section 409(d)(2), used in its trade or business and that Participant continues employment with the business that acquires the assets; 
  
 (7) a corporation disposes of its interest in the Participant’s Employer, which is a subsidiary of the
selling corporation within the meaning of Code section 409(d)(3), and the Participant continues his employment with the Employer; or 
  
 (8) the Participant’s severance from employment. However, any distribution based on a severance from employment shall be subject to
all provisions of the Plan regarding distributions, other than provisions that require a severance from employment before such amounts may be distributed. 
  
 (b) A distribution cannot be made pursuant to an event described in paragraph (6) unless distribution would be a lump sum distribution under Code section
402(e)(4)(D), without regard to clauses (I), (II), (III), and (IV) of clause (i) and, with respect to paragraphs (6) and (7), the transferor corporation continues to maintain the Plan after the disposition. 
  

			
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	 	44

 ARTICLE VIII 
 PLAN LOANS 
  
 8.01. In General

  
 Subject to prior approval by the Fiduciary Committee,
each Participant who is an Employee shall have the right to borrow from the Trust using the Participant’s Account as security for such loan. In addition, each “party in interest,” as defined in ERISA Section 3(14), who is (a) a
Participant but no longer an Employee, (b) the Beneficiary of a deceased Participant, or (c) an alternate payee of a Participant pursuant to the provisions of a “qualified domestic relations order,” as Section 12.03 defines that term,
shall also have the right, subject to prior approval by the Fiduciary Committee, to borrow from the Trust. 
  
 8.02. Loan Application 
  
 In order to apply for a loan, a borrower must submit to the Fiduciary Committee or its designee documents or such other information the Fiduciary Committee requires for this purpose. The borrower will receive the loan as soon as
administratively practicable after the Fiduciary Committee approves the borrower’s loan application. The borrower may not have more than two loans outstanding under the Plan at any time, except that the borrower may have three outstanding loans
at a time if such loans were outstanding as of April 1, 2005. The Participant’s Account may be charged an appropriate fee for processing each loan. 
  
 8.03. Prohibition Against Discrimination 
  
 Loans shall be available to all eligible borrowers on a reasonably equivalent basis which shall take into account the borrower’s creditworthiness,
ability to repay and ability to provide adequate security. Loans shall not be made available to Highly Compensated Employees of an Employer in an amount greater than the amount made available to other borrowers. This provision shall be deemed to be
satisfied if all borrowers have the right to borrow the same percentage of their interest in the Participant’s Account. 
  
 8.04. Interest Rate and Amortization Period 
  
 Each loan shall bear a reasonable rate of interest and provide that the loan be amortized in substantially level payments, made no less frequently than
quarterly, over a specified period of time. A reasonable rate of interest shall be that rate that provides the Trust with a return commensurate with the interest rates that persons in the business of lending money charge for loans which would be
made under similar circumstances. 
  
 8.05. Adequate Security 

 
 Each loan shall be adequately secured, with the security for the
outstanding balance of all loans to the borrower to consist of not more than one-half of the borrower’s interest in the Participant’s Account and such other security as the Fiduciary Committee deems acceptable. The Individual Funds in
which the Participant’s Account is invested shall be charged as security for the loan on a prorated basis. 
  

			
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 April 1, 2005 Restatement
	 	45

 8.06. Loan Amount 
  
 The minimum amount for each loan shall be $1,000. Each loan, when added to the outstanding balance of all other loans to the borrower from all qualified
retirement plans of the Employer and Affiliated Employers, shall not exceed the lesser of: 
  
 (a) $50,000, reduced by the excess, if any, of 
  
 (1) the highest outstanding balance of loans made to the borrower from all qualified retirement plans of the Employer and Affiliated
Employers during the one-year period immediately preceding the day prior to the date on which such loan was made, over 
  
 (2) the outstanding balance of loans made to the borrower from all qualified retirement plans of the Employer and Affiliated Employers on
the date on which such loan was made, or 
  
 (b) the greater of

  
 (1) $10,000, or 
  
 (2) one-half of the value of the borrower’s interest in
the Participant’s vested Account. 
  
 For purposes of this
Section, the value of the Account shall be established as of the latest preceding Valuation Date, and shall be adjusted for any distributions, withdrawals or contributions made through the date of the origination of the loan. 
  
 8.07. Repayment Period 
  
 Except as otherwise permitted by USERRA, each loan shall by its terms be repaid within five years, except that any loan that
the borrower intends to use to acquire any dwelling unit that, within a reasonable time, the borrower will use (determined at the time the loan is made) as his principal residence shall, by its terms, be repaid within ten years. Payment of interest
shall be allocated to the Participant’s Account. 
  
 8.08. Events of
Default 
  
 The entire unpaid principal sum and accrued
interest shall, at the option of the Fiduciary Committee, become due and payable only if (a) a borrower fails to make any loan payment when due, (b) a borrower ceases to be a “party in interest” as described in Section 8.01, (c) the vested
Account held as security under the Plan for the borrower will, as a result of an impending distribution or withdrawal, be reduced to an amount less than the amount of all unpaid principal, accrued interest then outstanding under the loan and any
other applicable charges under the note 

  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
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evidencing the loan, (d) a borrower makes any untrue representations or warranties in connection with the obtaining of the loan or (e) the borrower dies or
(if an Employee at the time of the loan) ceases to be an Employee. In that event, the Fiduciary Committee may take such steps as it deems necessary to preserve the assets of the Trust, including, but not limited to, the following: (1) direct the
Trustee to deduct the unpaid principal sum, accrued interest and any other applicable charges under the note evidencing the loan from any benefits that become payable from the Plan to the borrower or (2) liquidate the security the borrower has
given, other than amounts attributable to a Participant’s Account, and deduct from the proceeds the unpaid principal balance, accrued interest and any other applicable charges under the note evidencing the loan. 
  
 8.09. Loan Procedures 
  
 The Fiduciary Committee will establish loan policies and procedures in accordance with ERISA section 408(b)(1), with such
uniform and nondiscriminatory rules and procedures as the Fiduciary Committee deems necessary or appropriate. 
  

			
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 ARTICLE IX 
 DISTRIBUTION OF ACCOUNTS UPON SEVERANCE FROM EMPLOYMENT 
  
 9.01. Eligibility 
  
 Upon
a Participant’s severance from employment his Accounts shall be distributed as provided in this Article. 
  
 (a) Consent. If, as of the applicable Valuation Date, a Participant’s Vested Interest exceeds $5,000, then on his Information Date, the
Participant shall receive the information required by Plan section 9.01(c) and must consent in a manner prescribed by the Administrator to receive a distribution in accordance with Plan section 9.01(d). 
  
 (b) Mandatory Distributions. In the event of a mandatory distribution
made on or after March 28, 2005, greater than $1,000 but not greater than $5,000, as determined in accordance with the provisions of Plan section 9.05(c), if the Participant does not elect to have such distribution paid directly to an
Eligible Retirement Plan (as defined in Plan section 9.08(b)(3)) specified by the Participant in a direct rollover or to receive the distribution directly, then the Plan Administrator will pay the distribution in a direct rollover to an individual
retirement plan designated by the Plan Administrator.  
  
 (c) Written Notice. On his Information Date, a Participant shall be given a written notice which describes the following: (i) the terms and conditions of the optional forms of benefit payment under Plan section
9.02; (ii) the Participant’s right to make, and the effect of, an election to receive benefits under the optional forms of payment and the rights of the Participant’s Spouse (if any) with respect to such an election; (iii) the right to
make, and the effect of, a revocation of any election; and (iv) sufficient additional information explaining the forms of benefit available under the Plan. 
  
 (d) Timing of Consent. The Participant must consent to receipt of a distribution within a period that is at least 30 days but not more than 90 days
after his Information Date. A Participant may affirmatively elect to waive the minimum 30-day period, provided that he receives adequate information describing his right to a 30-day election period and may revoke such affirmative election until his
Payment Starting Date. After the Payment Starting Date, no further elections, changes in elections or revocations of elections are permitted. 
  
 9.02. Form of Distribution 
  
 A Participant who severs employment for any reason shall receive his or her vested Account balance in a lump sum distribution. A Participant whose Account
is not subject to Plan section 9.05 and who has not consented to receive a distribution in accordance with Plan section 9.01(a), shall be deemed to have elected to defer the commencement of the distribution of his or her Accounts to his or her
Required Beginning Date. A Participant who elects or is deemed to elect (by not electing a distribution) to defer the commencement of his or her distribution may elect to have his Accounts distributed in a lump sum payment at any time prior to his
Required Beginning Date. 
  

			
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 9.03. Payments Upon Death. 
  
 (a) Death Before Payments Begin. If a Participant dies before his benefits commence, his Accounts shall be paid to
his Beneficiary in a lump sum. 
  
 (b) Timing of Death Benefit.
The lump sum payment shall be made as soon as administratively practicable after receipt by the Administrator of the Beneficiary’s election. Such distribution shall be made as of the Valuation Date coincident with or next preceding the date
of distribution. Notwithstanding the preceding, if the Participant’s Beneficiary is his estate, the balance of the Participant’s Accounts shall be paid as a lump sum as soon as administratively practicable following the Participant’s
date of death. 
  
 (c) Proof of Death. The Administrator
may require and rely upon such proof of death and such evidence of the right of any Beneficiary or other person to receive the value of the Accounts of a deceased Participant as the Administrator may deem proper and its determination of death and of
the right of that Beneficiary or other person to receive payment shall be conclusive. 
  
 (d) Beneficiary Elections. Any election required hereunder shall be made by the Beneficiary not later than sixty (60) days after benefits become payable as provided in Plan section 9.01. Except as otherwise
provided in the case of a Spousal Beneficiary, in all events a Participant’s interest in this Plan shall be distributed within five (5) years after his date of death. If a Participant’s designated Beneficiary is his Spouse, benefit
payments need not begin until the date the Participant would have reached age 701⁄2 and, if the Spouse dies before such payments begin, the Participant’s interest in this Plan shall then be distributed pursuant to this Plan section 9.03, as
if the Spouse were the Participant. Further, for purposes of this Plan section any benefits payable to a child of a deceased Participant shall be treated as if they were payable to the Participant’s Spouse if the benefits will become payable to
the Spouse when the child reaches majority (or upon such other designated event permitted by regulations). 
  
 9.04. Commencement of Payments 
  
 (a) In General. Normally, distributions will commence as provided in Plan sections 9.01, 9.02, or 9.03. In all events, payment of a Participant’s Accounts shall be made as soon as administratively practicable following the later
of (i) the Participant’s termination of service or (ii) the 65th anniversary of the Participant’s date of birth (but not more than 60 days after the close of the Plan Year in which the later of (i) or (ii) occurs). 
  
 (b) Upon Death. In the case of the death of a Participant before his
benefits commence, his Accounts shall be paid to his Beneficiary (subject to the election of a Spousal Beneficiary to defer his or her distribution pursuant to Plan section 9.03(d) or to receive a distribution pursuant to Plan section 9.02 as soon
as administratively practicable following the Participant’s date of death (and in all events no later than 5 years after the Participant’s date of 

  

			
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death). Notwithstanding the preceding, a non-Spousal Beneficiary may also elect to defer a lump sum distribution until the January 1 following the
Participant’s date of death. In such event the distribution shall be made as soon as administratively practicable following such January 1. 
  
 9.05. Small Benefits 
  
 (a) Involuntary Cash Outs. Notwithstanding any provision of the Plan to the contrary, a lump sum payment shall be made as soon as administratively
practicable following the Participant’s termination of employment if: 
  
 (1) the value of the Participant’s Accounts is $5,000 or less; or 
  
 (2) the value of a terminated Participant’s Accounts drop to (or below) $5,000 as of the last day of any Plan Year. 
  
 (b) The value of a terminated Participant’s Account balance for purposes
of Plan section 9.05(a) shall be determined without regard to that portion of the Account balance that is attributable to Rollover Contributions (and earnings allocable thereto) within the meaning, to the extent applicable, of Code sections 402(c),
403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16). If the value of the terminated Participant’s Account balance, as so determined, is $5,000 or less, the Plan shall immediately distribute such Participant’s entire Account balance as
soon as practicable. 
  
 (c) In the event of a mandatory
distribution made on or after March 28, 2005, greater than $1,000 but not greater than $5,000, in accordance with the provisions of this Plan section 9.05, if the Participant does not elect to have such distribution paid directly to an
Eligible Retirement Plan (as defined in Plan section 9.08(b)(3)) specified by the Participant in a direct rollover or to receive the distribution directly, then the Plan Administrator will pay the distribution in a direct rollover to an individual
retirement plan designated by the Plan Administrator. For purposes of this Plan section 9.05(c), when determining if the value of a terminated Participant’s Account balance is greater than $1,000, the value of a terminated Participant’s
Account balance shall be determined by including that portion of the Account balance that is attributable to rollover contributions (and earnings allocable thereto) within the meaning, to the extent applicable, of Code sections 402(c), 403(a)(4),
403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16). 
  
 (d) In the event
of a mandatory distribution of $1,000 or less (determined for purposes of this Plan section 9.05(d) by including in the value of the terminated Participant’s Account balance any portion of the Account balance that is attributable to rollover
contributions (and earnings allocable thereto) within the meaning, to the extent applicable, of Code sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16)) made on or after March 28, 2005, such distribution shall be made as soon as
practicable unless the Participant elects to have such distribution paid to an Eligible Retirement Plan (as defined in Plan section 9.08(b)(3). 
  
 (e) De minimis Benefits. Notwithstanding any provision of the Plan to the contrary, if the administrative cost of making a distribution is greater
than the Participant’s benefit to be distributed and such benefit does not exceed $20, such benefit shall be forfeited and used to reduce Plan expenses. 
  

			
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 9.06. Form of Payment 
  
 (a) Cash. Distributions from a Participant’s Accounts pursuant to this Article IX shall be made in cash, except as otherwise provided in
subsection (b) or (c) below or to the extent the Participant elects to receive his or her distribution in shares of HomeBanc Corp. Stock. 
  
 (b) HomeBanc Corp. and First Horizon National Corporation f/k/a First Tennessee Bank Stock Funds. The portion of a lump sum payment under this
Article attributable to the HomeBanc Corp. and First Horizon National Corporation f/k/a First Tennessee Bank Stock Funds shall be made in kind in accordance with such rules as the Administrator may establish. Notwithstanding the preceding,
fractional shares of HomeBanc Corp. Stock and First Horizon National Corporation f/k/a First Tennessee Bank Stock shall be paid in cash. 
  
 (c) Promissory Note. A promissory note representing the outstanding principal balance and accrued unpaid interest on a Participant’s loan may
be distributed in kind as part of a single sum payment under this Article if a direct rollover of such note is made to another qualified plan pursuant to Plan section 9.08 or the note is transferred to such a plan pursuant to an elective transfer
under applicable Treasury Regulations. 
  
 9.07. Required Distributions

  
 (a) The entire interest of a Participant under the Plan
must be, or must begin to be, distributed not later than his Required Beginning Date. 
  
 (b) A Participant whose Accounts must commence being distributed under this Plan section 9.07 prior to his separation from service shall be paid the minimum amount required under Code section 401(a)(9) until his
actual severance from employment. 
  
 9.08. Direct Rollover of Certain
Distributions 
  
 (a) Direct Rollover: Notwithstanding
any provision of the Plan to the contrary that would otherwise limit a distributee’s election under this Plan section 9.08, a “distributee” may elect, at the time and in the manner prescribed by the Administrator, to have any portion
of an “eligible rollover distribution” paid directly to an “eligible retirement plan,” specified by the distributee in a “direct rollover.” 
  
 (b) Definitions: The following definitions shall apply for purposes of this Plan section: 
  
 (1) Direct Rollover: A direct rollover is a payment
by the Plan to the eligible retirement plan specified by the distributee. 
  

			
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 (2) Distributee: A distributee includes an employee or former employee. In
addition, the employee’s or former employee’s surviving Spouse, and the employee’s or former employee’s Spouse or former Spouse who is the alternate payee under a qualified domestic relations order as defined in Code section
414(p), are distributees with regard to the interest of the Spouse or former Spouse. 
  
 (3) Eligible Retirement Plan: An eligible retirement plan is an individual retirement account described in Code section 408(a), an
individual retirement annuity described in Code section 408(b), an annuity plan described in Code section 403(a), or a qualified trust described in Code section 401(a), that accepts the distributee’s eligible rollover distribution. Eligible
Retirement Plan shall also mean an annuity contract described in Code section 403(b) and an eligible plan under Code section 457 which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan. The definition of Eligible Retirement Plan shall also apply in the case of a distribution to a Surviving Spouse, or to a
Spouse or former spouse who is the Alternate Payee under a Qualified Domestic Relations Order. 
  
 (4) Eligible Rollover Distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to
the credit of the distributee, 
  
 (A) except
that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint
lives (or joint life expectancies) of the distributee and the distributee’s designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Code section 401(a)(9);
returns of 401(k) Contributions pursuant to Treasury Regulation section 1.415-6(b)(6)(iv); returns of Excess Contributions, Excess Deferrals and Excess Aggregate Contributions pursuant to Treasury Regulation sections 1.401(k)-1(f)(4),
1.402(g)-1(e)(3) and 1.401(m)-1(e)(3) and the income allocable to those corrective distributions; loans treated as distributions under Code section 72(p) and not excepted by Code section 72(p)(2) and loans in default that are deemed distributions;
dividends paid on employer stock as described in Code section 404(k); any amount that is distributed on account of hardship pursuant to Plan section 7.02; and similar items designated by the Commissioner of the Internal Revenue. 
  
 (B) A portion of a distribution shall not fail to be an
eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described
in Code sections 401(a) or 403(a) that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is
not so includible. 
  

			
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 (c) Requirements of Administrator: In order to elect a direct rollover, the distributee must
specify the eligible retirement plan to which the distribution is to be made, provide the Administrator with such information and/or documentation as the Administrator may require and comply with such procedures as the Administrator may prescribe.

  
 (d) Notice Requirement: The Administrator shall provide
to each distributee a notice that satisfies Code section 402(f) at least 30 but not more than 90 days before the distributee’s Payment Starting Date. A distributee may affirmatively elect to waive the minimum 30-day notice period, provided he
receives adequate information describing his right to a 30-day election period. 
  
 (e) Failure to Elect: A distributee who fails to make an affirmative election shall be treated as having elected not to make a direct rollover. 
  
 9.09. Minimum Distribution Requirements. 
  
 (a) General Rules. The provisions of this section will apply for purposes of determining required minimum distributions for calendar years
beginning with the 2003 calendar year. The requirements of this section will take precedence over any inconsistent provisions of the Plan. All distributions required under this section will be determined and made in accordance with the Treasury
regulations under section 401(a)(9) of the Internal Revenue Code. 
  
 (b) Time and Manner of Distribution. 
  
 (1) Required Beginning Date. The Participant’s entire interest will be distributed to the Participant no later than the Participant’s Required Beginning Date, as defined in Plan section 1.50, and any subsequent allocations
will be distributed at least annually thereafter. 
  
 (2) Death of Participant Before Distributions Begin. If the Participant dies before distributions begin, the Participant’s entire interest will be distributed no later than as follows: 
  
 (A) If the Participant’s Surviving Spouse is the
Participant’s sole designated Beneficiary, then a distribution to the Surviving Spouse will be made by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar
year in which the Participant would have attained age 701⁄2, if later. 
  
 (B) If the Participant’s Surviving Spouse is not the Participant’s sole designated Beneficiary, then a distribution to the designated Beneficiary will be made by December 31 of the calendar year immediately
following the calendar year in which the Participant died. 
  

			
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 (C) If there is no designated Beneficiary as of September 30 of the year following the
year of the Participant’s death, the Participant’s entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. 
  
 (D) If the Participant’s Surviving Spouse is the
Participant’s sole designated Beneficiary            ,and the Surviving Spouse dies after the Participant but before a distribution has been made to the Surviving Spouse, this
subsection 9.09(b)(2), other than subsection 9.09(b)(2)(A), will apply as if the Surviving Spouse were the Participant. 
  
 For purposes of this subsection 9.09(b)(2) unless subsection 9.09(b)(2)(D) applies, distributions are considered made on the Participant’s Required
Beginning Date. If subsection 9.09(b)(2)(D) applies, distributions are considered made on the date distributions are required to be made to the Surviving Spouse under subsection 9.09(b)(2)(A). 
  
 (3) Forms of Distribution. All distributions under
the Plan shall be made in a lump sum on or before the Required Beginning Date, as of the first distribution calendar year. 
  
 (c) Definitions. 
  
 (1) Designated Beneficiary. The individual who is designated as Beneficiary under the Plan is the designated Beneficiary under
section 401(a)(9) of the Internal Revenue Code and section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations. 
  
 (2) Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before
the Participant’s death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Participant’s Required Beginning Date. For distributions beginning after the Participant’s
death, the first distribution calendar year is the calendar year in which distributions are required to begin under subsection 9.09(b)(2). The required minimum distribution for the Participant’s first distribution calendar year will be made on
or before the Participant’s Required Beginning Date. The required minimum distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which the Participant’s
Required Beginning Date occurs, will be made on or before December 31 of that distribution calendar year. 
  

			
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 ARTICLE X 
 ADMINISTRATION OF PLAN 
  
 10.01. Named
Fiduciaries 
  
 (a) In General. The Fiduciary
Committee and the Employer shall each be a “named fiduciary” within the meaning of ERISA section 402, but each party’s role as a named fiduciary shall be limited solely to the exercise of its own authority and discretion, as defined
under the terms of this Plan, to control and manage the operation and administration of the Plan (other than the authority and discretion assigned under this Plan, or delegated pursuant thereto, to the Trustee). 
  
 (b) Delegation. A named fiduciary may designate other persons who are
not named fiduciaries to carry out its fiduciary responsibilities hereunder, and any such person shall become a fiduciary under the Plan with respect to such delegated responsibilities. In the event of such a designation, the named fiduciary shall
not be liable for an act or omission of the designee in carrying out responsibilities delegated to him except to the extent provided in ERISA section 405. 
  
 10.02. Fiduciary Limitation 
  
 Named fiduciaries under the Plan, as well as the Trustee and any other person who may be a fiduciary by virtue of ERISA section 3(21), shall exercise and
discharge their respective powers and duties in the following manner: 
  
 (a) by acting solely in the interest of the Participants and their Beneficiaries; 
  
 (b) by acting for the exclusive purpose of providing benefits to Participants and their Beneficiaries and defraying reasonable expenses of administering the Fund and Plan; and 
  
 (c) by acting with the care, skill, prudence and diligence under the
circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of like character and with like aims; and 
  
 (d) by otherwise acting in accordance with this Plan and the Trust Agreement
to the extent consistent with ERISA Title I. 
  
 10.03. Appointment of
Committee 
  
 The Plan shall be administered by the Fiduciary
Committee. Participants of the Fiduciary Committee shall be appointed and may be removed by the chief executive officer of HomeBanc Corp. at any time with or without cause upon written notice from the chief executive officer of HomeBanc Corp. Any
Participant of the Fiduciary Committee may resign by delivering his written resignation to the corporate secretary of HomeBanc Corp. and the secretary of the Fiduciary Committee. 
  

			
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 10.04. Fiduciary Committee Responsibilities 
  
 The Fiduciary Committee shall have the following responsibilities: 
  
 (a) Powers and Duties: The Fiduciary Committee shall be the
“plan administrator” under Code section 414(g) and under ERISA section 3(16)(A) except to the extent such duties may be and are delegated pursuant to subsection (g) hereof. The Fiduciary Committee shall administer the Plan in accordance
with its terms and shall have all power necessary to carry out that obligation. The Fiduciary Committee shall have the exclusive discretionary authority to interpret and construe the provisions of the Plan, to supply omissions herein, and to
determine all questions arising in the administration, interpretation and application of the Plan including, without limitation, the authority to construe disputed Plan terms and the authority and discretion to determine questions concerning
eligibility for benefits and coverage. All such interpretive and administrative decisions, and rules and regulations, shall be conclusive and binding on all persons. In the exercise of its discretion, the Fiduciary Committee shall not discriminate
against any Participant, Beneficiary or Employee or any group or class thereof. If, due to errors in drafting, any Plan provision does not accurately reflect its intended meaning, as demonstrated by consistent interpretations or other evidence of
intent, the provision shall be considered ambiguous and shall be interpreted by the Fiduciary Committee in a fashion consistent with its intent. All actions taken and all determinations made by the Fiduciary Committee shall be final and binding on
all persons claiming any interest in or under the Plan. 
  
 (b)
Records and Reports: The Fiduciary Committee shall be responsible for keeping a record of all its proceedings and actions and shall maintain, or cause to be maintained by its delegates, all such books of account, records and other data as
shall be necessary to administer the Plan and to meet the disclosure and reporting requirements of ERISA. 
  
 (c) Individual Accounts: The Fiduciary Committee shall maintain, or cause to be maintained, records showing the individual balances in each
Participant’s Accounts. However, maintenance of those records and Accounts shall not require any segregation of the funds of the Plan. 
  
 (d) Committee Procedures: The Fiduciary Committee may act at a meeting or in writing without a meeting. The Fiduciary Committee may adopt such
regulations as it deems desirable for the conduct of its affairs. 
  
 (e) Distribution of Benefits: 
  
 (1) Direction to the Trustee: The Fiduciary Committee shall issue directions to the Trustee or Trustees concerning all benefits which are to be paid pursuant to the provisions of the Plan, and shall warrant that all such directions
are in accordance with the Plan. 
  
 (2)
Application by Participants: The Fiduciary Committee shall require a Participant to complete and file with it an application for the payment of benefits under the Plan and any other forms deemed necessary and desirable by the Fiduciary

  

			
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Committee for the proper administration of the Plan and furnish all pertinent information requested by the Fiduciary Committee. The Fiduciary Committee may
rely upon all such information so furnished it, including the Participant’s current mailing address. 
  
 (f) Claims Procedure: 
  
 (1) Filing of Claim: Any Participant or Beneficiary believing himself to be entitled to benefits under this Plan shall be entitled
to file a written claim for benefits with the Administrator, as agent for the Committee, setting forth the benefits to which he believes he is entitled and the reasons therefore. Within ninety (90) days after receipt of such claim for benefits, the
Administrator shall determine the claimant’s right to the benefits claimed and shall give said claimant written or electronic notice of the Administrator’s decision, and, if the claim is denied in whole or in part, said written notice
shall set forth in a manner calculated to be understood by the claimant: (a) the specific reason or reasons for the denial; (b) specific references to pertinent Plan provisions on which the denial is based; (c) a description of any additional
material or information necessary for the claimant to perfect the claim and an explanation of why such materials or information is necessary; and (d) a description of the Plan’s claims review procedure and time limits applicable to such
procedures, including a claimant’s right to bring a civil action under ERISA section 502(a) following an adverse benefit determination on review. Such notice shall be sent by certified mail, return receipt requested, to the address of the
claimant filing the claim as it appears in the books and records of the Employer, or to such other address as the claimant may direct. To the extent permitted by regulation, under special circumstances, the Administrator is allowed an additional
period of not more than ninety (90) days (one hundred eighty (180) days in total) within which to notify the claimant of the decision. If such an extension is required, the claimant will receive a written notice from the Administrator indicating the
reason for the delay and the date the claimant may expect a final decision. 
  
 (2) Review Procedure: If a claim for benefits is denied in whole or in part, the claimant or his or her duly authorized representative, may request a full and fair review of the claim and the adverse benefit
determination. The claims procedure must provide claimants with (1) at least 60 days following receipt of an adverse determination on which to appeal the determination; (2) the opportunity to submit to the Fiduciary Committee written comments,
documents and records relating to the claim; (3) reasonable access to and copies of documents and records relevant to the claim for benefits, upon request and free of charge; and (4) a review taking into account all comments, documents, records and
information submitted by the claimant relating to the claim, without regard to whether the information was submitted or considered in the initial benefit determination. Its decision shall be made within sixty (60) days, or within one hundred twenty
(120) days if, as provided by regulations, special circumstances require an extension of time for processing, after its receipt of a written appeal by the claimant. If the claim is denied on appeal, the Fiduciary Committee shall set forth the
reasons for denial and the pertinent Plan provisions in a written decision which shall be sent to the claimant. For all purposes under the Plan, such decision on claims where no 

  

			
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review is requested, and decisions on claims where review is requested, shall be final, binding and conclusive on all interested parties. Any electronic
notification shall comply with the standards imposed by Department of Labor Regulation 2520.104b-1(c). 
  
 (g) Assignment of Functions: The Fiduciary Committee shall appoint the Administrator to perform the functions assigned thereto under the Plan and
those additional duties as may from time to time be delegated thereto and may delegate the functions set forth in subsections (a), (b), (c) and (e) to a person or persons, which may include employees of the Employer. To the extent such functions are
delegated, such persons shall exercise such power as “plan administrator.” 
  
 10.05. Responsibilities Regarding Investment Funds 
  
 The general supervision of the funds of the Plan’s Investment Funds (other than shares of HomeBanc Corp. or First Horizon National Corporation f/k/a First Tennessee Bank) shall be with the Fiduciary Committee. 
  
 10.06. Organization of Committees 
  
 The Participants of the Fiduciary Committee shall elect a chairman from
their number and a secretary for their respective Committees who may be but need not be one of the Participants of such Committee; may appoint from their number such subcommittees with such powers as they shall determine; may authorize one or more
of their number or any agent to execute or deliver any instrument or make any payment on their behalf; may retain counsel, employ agents and provide for such clerical, accounting, and consulting services as they may require in carrying out the
provisions of the Plan; and may allocate among themselves or delegate to other persons all or such portion of their duties under the Plan, other than those granted to the Trustee or Trustees under a trust agreement adopted for use in implementing
the Plan, as they, in their sole discretion, shall decide. 
  
 10.07. Action of
Majority 
  
 Any act which the Plan authorizes or requires
the Fiduciary Committee to do may be done by a majority of its Participants. The action of that majority expressed from time to time by a vote at a meeting or in writing without a meeting shall constitute the action of the Fiduciary Committee and
shall have the same effect for all purposes as if assented to by all Participants of the Fiduciary Committee at the time in office. 
  
 10.08. Compensation and Bonding 
  
 No Participant of the Fiduciary Committee shall receive any compensation from the Plan for his services as such. Except as may otherwise be required by
law, no bond or other security need be required of any Participant in that capacity in any jurisdiction. 
  

			
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 10.09. Establishment of Rules; Actions by Committee 
  
 Subject to the limitations of the Plan, the Fiduciary Committee from time to time shall establish rules for the
administration of the Plan and the transaction of its business. Any rules established by, or actions taken by the Committee, shall not discriminate in favor of Highly Compensated Employees and shall be uniformly applied to similarly situated
employees. The determination of the Fiduciary Committee as to any disputed question shall be conclusive. 
  
 10.10. Service in More Than One Fiduciary Capacity 
  
 Any individual, entity or group of persons may serve in more than one fiduciary capacity with respect to the Plan and/or the funds of the Plan. 
  
 10.11. Limitation of Liability 
  
 The Employers, the directors of the Employers, the Participants of the Fiduciary Committee, and any officer, employee or agent of an Employer shall not
incur any liability individually or on behalf of any other individuals or on behalf of the Employer for any act or failure to act, made in good faith in relation to the Plan or the funds of the Plan. However, this limitation shall not act to relieve
any such individual or the Employers from a responsibility or liability for any fiduciary responsibility, obligation or duty under of ERISA Part 4, Title I. 
  
 10.12. Indemnification 
  
 The Participants of the Fiduciary Committee, directors, and the officers and employees of an Employer shall be indemnified against any and all liabilities
arising by reason of any act, or failure to act, in relation to the Plan or the funds of the Plan, including, without limitation, expenses reasonably incurred in the defense of any claim relating to the Plan or the funds of the Plan, and amounts
paid in any compromise or settlement relating to the Plan or the funds of the Plan, except for actions or failures to act made in bad faith. The foregoing indemnification shall be from the assets of the Employer. 
  
 10.13. Errors and Omissions 
  
 Individuals and entities charged with the administration of the Plan must
see that it is administered in accordance with its terms as long as it is not in conflict with the Code or ERISA. If an innocent error or omission is discovered in the Plan’s operation or administration, and the Administrator determines that
the error did not result in discrimination in operation or cause a qualification or excise-tax problem, then, to the extent that an adjustment will not in the Administrator’s judgment result in discrimination in operation, the Administrator may
authorize any equitable adjustment it deems necessary or desirable to correct the error or omission, including but not limited to the authorization of additional employer contributions designed, in a manner consistent with the goodwill intended to
be engendered by the Plan, to put Participants in the same relative position they would have enjoyed if there had been no error or omission. Any contribution made pursuant to this Plan section is an additional discretionary contribution. 

 

			
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 10.14. Fiduciary Discretion 
  
 In discharging the duties assigned to it under the Plan, each fiduciary has the discretion to interpret the Plan; adopt,
amend and rescind rules and regulations pertaining to its duties under the Plan. Each fiduciary’s discretionary authority is absolute and exclusive if exercised in a uniform and nondiscriminatory manner with respect to similarly situated
individuals. The express grant in the Plan of any specific power to a fiduciary with respect to any duty assigned to it under the Plan must not be construed as limiting any power or authority of the fiduciary to discharge its duties. A
fiduciary’s decision is final and conclusive unless it is established that the fiduciary’s decision constituted an abuse of its discretion. Benefits under this Plan will be paid only if the Fiduciary Committee decides in its discretion
that the applicant is entitled to them. 
  

			
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 ARTICLE XI 
 MANAGEMENT OF FUNDS 
  
 11.01. Trust
Agreement 
  
 All the funds of the Plan shall be held by or
on behalf of a Trustee or Trustees appointed from time to time by the Board of Directors or its delegate under a trust agreement or agreements adopted, or as amended, by the Board of Directors for use in providing the benefits of the Plan and paying
its expenses not paid directly by the Employers. The Employers shall have no liability for the payment of benefits under the Plan nor for the administration of the funds paid over to the Trustee. 
  
 11.02. Exclusive Benefit Rule 
  
 Except as otherwise provided in the Plan, no part of the corpus or income of
the funds of the Plan shall be used for, or diverted to, purposes other than for the exclusive benefit of Participants and other persons entitled to benefits under the Plan. No person shall have any interest in or right to any part of the earnings
of the funds of the Plan, or any right in, or to, any part of the assets held under the Plan, except as and to the extent expressly provided in the Plan. 
  
 11.03. Duties of Fiduciary Committee 
  
 The Fiduciary Committee shall be responsible for the administration and management of the funds held by a Trustee under a trust or custody agreement other
than shares of HomeBanc Corp. or First Horizon National Corporation f/k/a First Tennessee Bank; shall establish guidelines and objectives for the Investment Funds other than shares of HomeBanc Corp. or First Horizon National Corporation f/k/a First
Tennessee Bank which may be offered from time to time under the Plan; may segregate all or a portion of the funds of the Plan into one or more accounts for investment management and shall appoint an investment manager or managers to be responsible
for such accounts; and in accordance with the objectives of the Investment Funds other than shares of HomeBanc Corp. or First Horizon National Corporation f/k/a First Tennessee Bank may direct a Trustee to sell any or all assets of the Plan, or to
invest or retain all or any portion of the funds of the Plan. Notwithstanding the foregoing, neither the Fiduciary Committee nor any Trustee or Custodian shall have any authority or responsibility to sell any of the shares in the HomeBanc Corp. or
First Horizon National Corporation f/k/a First Tennessee Bank Stock Funds, except pursuant to a Participant’s investment election, change of election, or reallocation election pursuant to Plan sections 4.02, 4.04 or 4.05. 
  
 11.04. Investment Managers 
  
 The Fiduciary Committee shall have the power to appoint or remove one or
more investment managers and to delegate to such manager authority and discretion to manage (including the power to acquire and dispose of) the assets or a portion of the assets of the Plan other than shares of HomeBanc Corp. or First Horizon
National Corporation f/k/a First Tennessee Bank, provided that: 
  
 (a) each manager with such authority and discretion shall be: 
  
 (1) a bank, an insurance company or registered investment advisor under the Investment Advisors Act of 1940: 
  

			
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 (2) an investment advisor not registered under the Investment Advisers Act of 1940 by
reason of paragraph (1) of section 203A(a) of such Act, but which is registered as an investment advisor under the laws of the state (referred to in such paragraph (1)) in which it maintains its principal office and place of business and at the time
it filed the most recent registration form required to maintain its registration under the laws of such state, also filed a copy of such form with the Secretary of Labor; 
  
 (3) a bank as defined in the Investment Advisors Act of 1940; or 
  
 (4) an insurance company qualified to manage assets of
retirement plans or perform similar functions under the laws of more than one state, 
  
 (b) and acknowledges in writing to the Fiduciary Committee that it is a fiduciary with respect to the Plan. 
  
 The Fiduciary Committee shall periodically review the investment performance and methods of each manager with such authority and discretion. 
  
 11.05. Voting of Shares. 
  
 (a) Registered Stock. If any class of stock of HomeBanc Corp. or
First Horizon National Corporation f/k/a First Tennessee Bank is required to be registered under Section 12 of the Securities and Exchange Act of 1934, as amended, then each Participant in the Plan shall be entitled to instruct the applicable
Trustee or Custodian (to the extent not inconsistent with ERISA) as to the manner in which any shares of HomeBanc Corp. or First Horizon National Corporation f/k/a First Tennessee Bank Stock allocated to his or her Account shall be voted, but only
to the extent required under Code section 409(e). If no class of stock of HomeBanc Corp. or First Horizon National Corporation f/k/a First Tennessee Bank is required to be so registered, then subsection (b) of this Plan section shall apply instead
of this subsection. 
  
 (b) Corporate Restructuring. With
respect to any corporate merger, consolidation, recapitalization, reclassification, liquidation, dissolution, sale of substantially all the assets of HomeBanc Corp. or First Horizon National Corporation f/k/a First Tennessee Bank or a similar
transaction, each Participant shall be entitled to instruct the applicable Trustee or Custodian as to the manner in which the shares of HomeBanc Corp. or First Horizon National Corporation f/k/a First Tennessee Bank Stock then allocated to his
Accounts shall be voted, but only to the extent required by Code sections 401(a)(22) and 409(e)(3) and the Treasury Regulations promulgated thereunder. 
  
 (c) Voting by Trustee. On any occasion on which the stockholders of HomeBanc Corp. or First Horizon National Corporation f/k/a First Tennessee Bank
vote, the applicable 

  

			
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Trustee or Custodian shall separately vote all shares of HomeBanc Corp. Stock allocated to the Accounts of Participants for which no instructions are
received, and all shares of HomeBanc Corp. Stock or First Horizon National Corporation f/k/a First Tennessee Bank Stock that are not then allocated to any Participant’s Accounts, in proportion to the responses actually received from
Participants with respect to respective allocated shares in connection with each question before the shareholders on such occasion to the extent permitted by ERISA. 
  
 (d) Confidentiality. All voting instructions provided a Trustee or Custodian (or the entity recording shareholder
votes) by Participants shall be held in confidence. 
  
 11.06. Tender or
Exchange Offers 
  
 (a) Written Direction.
Notwithstanding any other provisions of this Plan or Trust Agreement to the contrary, except as set forth in the following sentence, in the event of a tender or exchange offer for securities of the Employer or any successor thereto held by the
Trustee in the HomeBanc Corp. or First Horizon National Corporation f/k/a First Tennessee Bank Stock Fund under the Plan for the account of, or on behalf of, any Participant the Trustee shall have no discretion or authority to sell, convey or
transfer such securities except to the extent, and only to the extent, that the Trustee is timely directed to do so in writing by the Participant, and, upon timely receipt of such written instructions, the Trustee shall so sell, convey or transfer
such securities. In the event the Trustee does not receive any instructions with respect to such tender or exchange offer, the applicable Trustee shall have the discretion or authority to sell, convey or transfer such securities to the extent
permitted by ERISA. 
  
 (b) Communication. In the event of
a tender or exchange offer for the securities of HomeBanc Corp. or First Horizon National Corporation f/k/a First Tennessee Bank stock held by the Trustee for the account of, or on behalf of, any Participant under the Plan, (i) neither the Employer
nor the Fiduciary Committee shall interfere in any manner or in any way attempt to influence a Participant’s decision regarding the tender or exchange of such securities (hereinafter referred to as the “Investment Decision”); (ii) the
Employer and the Fiduciary Committee shall adequately communicate or cause to be communicated to the Participants the provisions of the Plan and the Trust Agreement relating to the tender or exchange of such shares and timely distribute to
Participants all communications directed generally to the owners of the securities subject to the tender or exchange offer; and (iii) the Trustee shall timely transmit to, or cause to be timely transmitted for distribution to, Participants, all
communications relating to such tender or exchange offer that the Trustee may receive, if any, from the offeror of such tender or exchange offer. 
  
 (c) Reinvestment. Notwithstanding any other provisions of this Plan to the contrary, any securities received by the Trustee as a result of
tendering securities of the Employer shall be held by the Trustee pending further instructions from the Participant, based on options acceptable to HomeBanc Corp., and any cash received by a Trustee as a result of tendering securities of the
Employer shall be invested in short-term fixed income investments having an investment maturity of not more than two years from the time of the making of the investment and during the period of any such tender or exchange offer the Trustee shall not
make any purchase of securities of the Employer unless such purchase is required under the Code in order for the Employer to maintain the qualified status of the Plan. 
  

			
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 11.07. Expenses 
  
 All reasonable expenses of the Plan and any Fund shall be paid by, and constitute a charge upon, the trust fund or the applicable fund, except to the
extent that expenses have been paid by the Employer in its discretion and for which it does not seek reimbursement. Such expenses shall include any expenses incident to the operation of the Plan, including, without limitation, attorneys’ fees
and the compensation of agents, accounting and clerical charges, the expense, if any, of being bonded under ERISA, and any other costs of administering the Plan. Such expenses may be paid directly or reimbursed to the Employer which has advanced
them and seeks reimbursement therefore. Notwithstanding the preceding, effective January 1, 2005, certain expenses associated with a Participant’s Account shall be passed through and charged against the affected Participant’s Account. Such
expenses shall include charges for fund wire transfers, overnight delivery charges, the cost of having domestic relations orders reviewed to determine if they constitute Qualified Domestic Relations Orders, and may include other charges associated
with the maintenance or administration of a Participant’s Account as determined from time to time by the Administrator and communicated in advance to Participants. 
  

			
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 ARTICLE XII 
 GENERAL PROVISIONS 
  
 12.01.
Qualification 
  
 This Plan has been created for the
exclusive purpose of providing benefits to Participants and their Beneficiaries and defraying reasonable expenses of administering the Plan. The Plan shall be interpreted in a manner consistent with applicable provisions of the Code and of ERISA.
Except as permitted by law, under no circumstances shall any funds contributed to this Plan, any assets of this Plan held under any Trust Agreement or income attributable to such assets, revert to or be used or enjoyed by an Employer, nor shall any
such funds, assets or income ever be used or diverted to purposes other than the exclusive benefit of Participants or their Beneficiaries, except as provided in Plan section 6.07. 
  
 12.02. Nonalienation 
  
 No benefit under the Plan shall in any manner be anticipated, assigned or alienated, and any attempt to do so shall be void; provided, however, payments
shall be made pursuant to (i) a Federal tax levy made pursuant to Code section 6331; (ii) a judgment in favor of the United States resulting from an unpaid tax assessment; (iii) a Qualified Domestic Relations Order, as discussed in Plan section
12.03; or (iv) certain orders or decrees authorizing the settlement of liabilities incurred against the Plan by a Participant as allowed by Code section 401(a)(13). 
  
 12.03. Qualified Domestic Relations Order Payments 
  
 (a) In General. This section applies to amounts that are subject to a Qualified Domestic Relations Order (defined in
Plan section 12.03(k)). 
  
 (b) Administrative Procedures.
The Administrator must establish reasonable written procedures for determining the qualified status of a domestic relations order and for administering distributions under a Qualified Domestic Relations Order. The Administrator must promptly
notify the Participant and each Alternate Payee (defined in Plan section 12.03(l)) of the receipt of a domestic relations order and of the procedures for determining its qualified status. 
  
 (c) Separate Accounting. The Administrator must separately account for or segregate amounts that would be payable to
or segregated for the benefit of an Alternate Payee during the 18-month period commencing on the first date on which a payment would have been required to have been made to an Alternate Payee under a domestic relations order (or a modification of a
domestic relations order) received by the Plan Administrator for determination of its status as a Qualified Domestic Relations Order, assuming the domestic relations order were to be determined to be a Qualified Domestic Relations Order. Any
domestic relations order determined to be a Qualified Domestic Relations Order after the expiration of such eighteen-month period will apply only on a prospective basis. Likewise, during the period the Administrator or any other entity is
determining whether a domestic relations order is a Qualified Domestic Relations Order, the Plan may not pay the Participant, or any other person, amounts that would be payable to the Alternate Payee assuming the domestic relations order is
determined to be a Qualified Domestic Relations Order. 
  

			
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 (d) Hold on Distributions. No benefits will be distributed to the Participant to whom a domestic
relations order relates after the date on which the Administrator receives the order (or modification of an order) for determination as a Qualified Domestic Relations Order and before the earliest of (i) the expiration of the 18-month period
beginning on that date; (ii) the date on which the Administrator determines that the order (or modification of an order) is a Qualified Domestic Relations Order; or (iii) the date the parties notify the Administrator that they no longer intend to
pursue a Qualified Domestic Relations Order with respect to the Participant’s Account. 
  
 (e) Timing of Payments. The Trustee shall make payments pursuant to a Qualified Domestic Relations Order as soon as practicable after the payment commencement date specified in the order. If specified in the
Qualified Domestic Relations Order, distributions may be made to the Alternate Payee prior to the date that a Participant attains his “earliest retirement age” under the Plan as defined under Code section 414(p)(4). If the Participant dies
before that date, the Alternate Payee is entitled to benefits only if the order requires the establishment of a separate account for the Alternate Payee or otherwise requires survivor benefits to be paid. To the extent that a contrary result is not
specified in the Qualified Domestic Relations Order, payments to the Alternate Payee shall be made in a lump sum cash payment. 
  
 (f) Segregation of Accounts. Upon determination that an order is a Qualified Domestic Relations Order, amounts subject to the Qualified Domestic
Relations Order that are not immediately distributable may be segregated, as of the Valuation Date specified in the Qualified Domestic Relations Order or if no such Valuation Date is specified, as of the Valuation Date coincident with or immediately
preceding the date of segregation, into a separate account for the benefit of the Alternate Payee (the “QDRO Account”). To the extent established in the Qualified Domestic Relations Order, the QDRO Account will participate in the earnings,
gains or losses of the Fund in the same manner as a Participant’s Account. Except as otherwise allowed to a Participant in the Plan, a distribution to the Alternate Payee from his QDRO Account will be made a soon as possible after the payment
date specified in the order. The Qualified Domestic Relations Order may not specify payment in a form of distribution other than that provided for in the Plan. 
  

(g) Cash-Outs. If the value of the Alternate Payee’s QDRO payment exceeds $5,000 as of the Valuation Date coincident with or preceding the
date that such payment is distributed, then the Alternate Payee must consent to receive a distribution only if so provided in the QDRO. Notwithstanding the preceding sentence, if the value of the Alternate Payee’s QDRO payment does not exceed
$5,000 as of the applicable Valuation Date, then the Trustee shall distribute such Account balance in a lump sum as soon as practicable following such Valuation Date. The value of an Alternate Payee’s QDRO Account balance shall be determined
without regard to that portion of the QDRO Account balance that is attributable to the Participant’s Rollover Contributions (and earnings allocable thereto) within the meaning, to the extent applicable, of Code sections 402(c), 403(a)(4),
403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16). If the value of the Alternate Payee’s QDRO Account balance, as so determined, is $5,000 or less, the Plan shall immediately distribute such QDRO Account balance as soon as practicable. 
  

			
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 (h) Proportional Distribution. Unless otherwise specified, a distribution made pursuant to a
Qualified Domestic Relations Order will be charged proportionally against a Participant’s Accounts, including the earnings thereon. 
  
 (i) Restriction on Distribution. If a distribution is made to an Alternate Payee under a Qualified Domestic Relations Order before any amounts are
segregated pursuant to subsection (f), in no event may the distribution exceed the value of the Participant’s Account as of the Valuation Date on or immediately preceding the date of distribution. 
  
 (j) Upon Alternate Payee’s Death. If the Alternate Payee dies
prior to receiving his entire interest in his QDRO Account, any remaining interest in that account will be distributed in accordance with the Qualified Domestic Relations Order or in the event that the Qualified Domestic Relations Order does not
specify the manner in which the Alternate Payee’s interest in his QDRO Account will be distributed upon his death, in accordance with a beneficiary designation form completed by the Alternate Payee, or if the Alternate Payee makes no valid
beneficiary designation, to the Alternate Payee’s children, parents, brothers and sisters, or estate, in that order. 
  
 (k) Definition of QDRO. “Qualified Domestic Relations Order” means a judgment, decree, order, or approval of a property settlement
agreement that: 
  
 (1) relates to the provision
of child support, alimony payments, or marital property rights to an Alternate Payee; 
  
 (2) is made pursuant to a state domestic relations or community property law; 
  
 (3) creates or recognizes the right of, or assigns the right
to, an Alternate Payee to receive all or a portion of the benefits payable with respect to the Participant under this Plan; 
  
 (4) clearly specifies (A) the name and last known mailing address (if available) of the Participant and the name and mailing address of
each Alternate Payee, unless the Administrator has reason to know the address independently of the Order; (B) the amount or percentage of the Participant’s benefits to be paid by the Plan to each Alternate Payee or the manner in which such
amount or percentage is to be determined; (C) the number of payments or period to which the Order applies; and (D) each plan to which the Order applies; 
  
 (5) does not require the Plan to provide any type or form of benefit, or any option, not otherwise provided under the Plan; 
  

			
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 (6) does not require the Plan to provide increased benefits (that is, does not provide
for the payment of benefits in excess of the actuarial equivalent of the benefits to which the Participant would be entitled in the absence of the Order); and 
  

(7) does not require the payment of benefits to an Alternate Payee that are required to be paid to another Alternate Payee under
another order determined previously to be a Qualified Domestic Relations Order. 
  
 (l) Definition of Alternate Payee. “Alternate Payee” means a Participant’s Spouse, former Spouse, child, or other dependent who is recognized by a Qualified Domestic Relations Order as having a
right to receive all or a portion of the benefits payable under the Plan with respect to the Participant. 
  
 12.04. Conditions of Employment Not Affected by Plan 
  
 The establishment of the Plan shall not confer any legal rights upon any Employee or other person for a continuation of employment, nor shall it interfere with the rights of the Employer to discharge any Employee and
to treat him without regard to the effect which that treatment might have upon him as a Participant or potential Participant of the Plan. 
  
 12.05. Facility of Payment 
  
 If the Administrator shall find that a Participant or other person entitled to a benefit is unable to care for his affairs because he is physically or
mentally incapable or is a minor, the Administrator may direct that any benefit due him be paid to a duly appointed legal representative. Any payment so made shall be a complete discharge of the liabilities of the Plan for that benefit. 

 
 12.06. Information 
  
 Each Participant, Beneficiary or other person entitled to a benefit, before any benefit shall be payable to him or on his
account under the Plan, shall file with the Administrator the information that it shall require to establish his rights and benefits under the Plan. 
  
 12.07. Top-Heavy Provisions 
  
 (a) In General. For purposes of this Plan section, the Plan shall be “top-heavy” with respect to any Plan Year if as of the applicable
determination date, the top-heavy ratio exceeds 60 per cent. The top-heavy ratio shall be determined as of the applicable Valuation Date in accordance with Code sections 416(g)(3) and (4) and Article V, and shall take into account any contributions
made after the applicable Valuation Date but before the last day of the Plan Year in which the applicable Valuation Date occurs. For purposes of determining whether the Plan is top-heavy, the account balances under the Plan will be combined with the
account balances or the present value of accrued benefits under each other plan in the required aggregation group, and, in the Employer’s discretion, may be combined with the account balances or the present value of accrued benefits under any
other qualified plan in the permissive aggregation group. 
  

			
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 (b) Minimum Benefits. For any Plan Year with respect to which the Plan is top-heavy an additional
Employer contribution shall be allocated on behalf of each Participant (and each Employee eligible to become a Participant) who is a non-key employee, and who has not separated from service as of the last day of the Plan Year, to the extent that the
contributions made on his behalf under Plan section 3.04 for the Plan Year would otherwise be less than 3% of his Statutory Compensation. However, if the greatest percentage of Statutory Compensation contributed on behalf of a key employee under
Plan sections 3.01, 3.03 and 3.04 for the Plan Year would be less than 3%, that lesser percentage shall be substituted for “3%” in the preceding sentence. 
  
 (1) Employer Matching Contributions shall be taken into account for purposes of satisfying the minimum
contribution requirements of Code section 416(b)(2) and the Plan. Employer Matching Contributions that are used to satisfy the minimum contribution requirements shall be treated as matching contributions for purposes of the ACP test and other
requirements of Code section 401(m). 
  
 (2)
Notwithstanding the foregoing provisions of this subsection (b), no minimum contribution shall be made under this Plan with respect to a Participant (or an Employee eligible to become a Participant) if the required minimum benefit under Code section
416(c)(1) is provided to him by any other qualified pension plan of the Employer or an Affiliated Employer. 
  
 (c) Definitions. The following definitions apply to the terms used in this Plan section: 
  
 (1) “applicable determination date” means the last
day of the preceding Plan Year; 
  
 (2)
“top-heavy ratio” means the ratio of (A) the value of the aggregate of the Accounts under the Plan for key employees to (B) the value of the aggregate of the Accounts under the Plan for all key employees and non-key employees; provided,
however, if an Employee has not performed any services for the Employer at any time during the one year period ending on the applicable Valuation Date, the Account of that Employee shall not be considered in determining the top-heavy ratio;

  
 (3) “key employee” means an
employee who is in a category of employees determined in accordance with the provisions of Code sections 416(i)(1) and (5) and any regulations thereunder, and where applicable, on the basis of the Employee’s compensation (defined as set forth
in Treasury Regulations section 1.415-2(d)(2) and (3), as modified by Code section 415(c)(3)(D)) from the Employer or an Affiliated Employer; 
  
 (4) “non-key employee” means any Employee who is not a key employee; 
  
 (5) “applicable Valuation Date” means the
Valuation Date coincident with or immediately preceding the last day of the preceding Plan Year, 
  

			
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 (6) “required aggregation group” means any other qualified plan(s) of the
Employer or an Affiliated Employer in which there are Participants who are key employees or which enable(s) the Plan to meet the requirements of Code sections 401(a)(4) or 410, including any qualified plan(s) of the Employer or an Affiliated
Employer that terminated within the one-year period ending on the Determination Date; and 
  
 (7) “permissive aggregation group” means each plan in the required aggregation group and any other qualified plan(s) of the
Employer or an Affiliated Employer in which all Participants are non-key employees, if the resulting aggregation group continues to meet the requirements of Code sections 401(a)(4) and 410. 
  
 (d) Interests Measured. An individual’s interest in a defined
contribution plan is equal to his account balance for that plan as of the determination date. The account balances of an Employee as of the determination date shall be (1) increased by the distributions made with respect to the Employee under the
Plan and any plan aggregated with the Plan under Code section 416(g)(2) during the one-year period ending on the determination date. In the case of a distribution made for a reason other than severance from employment, death, or disability,
subsection (1) shall be applied by substituting “five-year period” for “one-year period.”; and (2) decreased by any catch-up contributions under Plan section 3.01(d) and Code section 414(v). 
  
 (e) Top-Heavy Determination. If, at any time during the one-year
period ending on the applicable determination date, an individual has not performed services for an Employer or Affiliated Employer maintaining this Plan or a plan that is a part of this Plan’s aggregation group, the interest of such individual
is not taken into account for purposes of this section. 
  
 12.08. Unclaimed
Benefits 
  
 The Administrator shall be required to make a
diligent search to locate all Participants and Beneficiaries entitled to payments under this Plan. In the event that a present or former Participant or a Beneficiary entitled to benefits hereunder cannot be located by diligent efforts of the
Administrator within a reasonable time after such benefits shall become payable, the amounts that would have been payable to that Participant or Beneficiary must be treated as a forfeiture, and allocated to the other Participant’s accounts in a
nondiscriminatory manner. If the identity or whereabouts of a person entitled to such benefits is later determined to the satisfaction of the Administrator, the amount previously forfeited shall be reinstated and payments made accordingly.

  
 12.09. Severability 
  
 In the event that any provision of this Plan is held invalid or illegal for
any reason, such invalidity or illegality shall not affect the remaining parts of the Plan and the Plan shall be enforced and construed as if such provision had never been inserted herein. 
  

			
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 12.10. Construction 
  
 (a) The Plan shall be construed, regulated and administered under the laws of the Delaware, to the extent not preempted by Federal law. 
  
 (b) Unless the context clearly indicates to the contrary, in reading this
document the singular shall include the plural and the masculine shall include the feminine. 
  
 (c) The titles and headings of the Articles and Sections in this Plan are for convenience only. In the case of ambiguity or inconsistency, the text rather than the titles or headings shall control. 
  
 12.11. No Guarantees 
  
 (a) Neither the Trustee, the Employer, nor any other Employer in any way guarantees the payment of any benefit or amount
that may become due under the Plan to any Participant or retired Participant, or to the legal representative or Beneficiary of any such Participant or retired Participant. Each Participant, retired Participant, or legal representative or Beneficiary
of any deceased or retired Participant, shall look solely to the assets of the Trust Fund for the payment of benefits under the Plan. 
  
 (b) The Plan shall not be deemed to constitute a contract between any Employer and an employee, or to be consideration or inducement for the employment of
any employee by any Employer. Nothing contained in the Plan shall be deemed to give any Employee the right to be retained in the service of any Employer or to interfere with the rights of such Employer to discharge or to terminate the service of any
Employee at any time without regard to the effect such discharge or termination may have on any rights under the Plan. 
  

			
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 ARTICLE XIII 
 AMENDMENT, MERGER AND TERMINATION 
  
 13.01. Amendment of Plan 
  
 (a) Authority to
Amend. The Board of Directors reserves the right at any time or from time to time, and for any reason, to modify, alter or amend, in whole or in part, any or all of the provisions of the Plan or its concomitant Trust agreement, prospectively or
retroactively, if deemed necessary or appropriate, by a majority vote of its members at a meeting, by unanimous consent in lieu of a meeting, or in any other manner permissible under applicable state law. In addition, the Board of Directors in its
sole discretion may delegate all or part of the authority to amend the Plan or its concomitant Trusts to an appropriate officer or officers of HomeBanc Corp. 
  
 (b) Restrictions. However, no amendment shall make it possible for any part of the funds of the Plan to be used for, or diverted to, purposes other
than for the exclusive benefit of persons entitled to benefits under the Plan. No amendment shall be made which has the effect of decreasing the balance of the Accounts of any Participant or of reducing the nonforfeitable percentage of the balance
of the Accounts of a Participant below the nonforfeitable percentage computed under the Plan as in effect on the date on which the amendment is adopted or, if later, the date on which the amendment becomes effective. 
  
 13.02. Additional Employers 
  
 (a) Adoption of Plan. If any company is or becomes a subsidiary of or
associated with HomeBanc Corp., the Board of Directors or its delegate may authorize the employees of that subsidiary or associated company to participate in the Plan upon appropriate action by that company necessary to adopt the Plan. By adopting
the Plan, such subsidiary or associated company shall be deemed to have delegated to the Board of Directors the sole authority to amend, merge or otherwise modify the Plan, except to the extent such authority has been delegated to an appropriate
officer or officers of HomeBanc Corp. Such Employer’s employees shall be subject to the terms of the Plan; provided, however, that by a written addendum to the Plan certain employees employed in one or more specified divisions, plants,
locations or other identifiable employee groups may be excluded from participation in the Plan; and provided, further, that the terms and provisions of the Plan with respect to such employees may be modified or supplemented as described in such
written addendum. 
  
 (b) Termination of Participation.
Each Employer reserves the right to terminate its participation in the Plan prospectively or to prospectively discontinue accruals under the Plan with respect to its otherwise eligible employees by action of its board of directors and in
accordance with applicable law. Further, with the consent of the Board of Directors, or its delegate, any entity participating in the Plan may, by action of its board of directors, withdraw from the Plan by giving six months’ advance notice of
its intention to the Administrator, unless a shorter notice period shall be agreed to in writing by the Board of Directors, or its delegate. The withdrawal of an Employer shall be effected in accordance with such terms and conditions as may be
agreed upon by the Board of Directors, or its delegate, and the withdrawing Employer 

  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	72

 
under applicable law. Should the Board of Directors or its delegate, and the withdrawing Employer not reach agreement, the accrued benefits of affected
Participants shall continue to be held under the Plan until distributed. 
  
 13.03. Termination of Plan 
  
 (a) The Board of
Directors or its delegate, may terminate the Plan or completely discontinue contributions under the Plan for any reason at any time in accordance with the procedures set forth in Plan section 13.01. In case of termination or partial termination of
the Plan, or complete discontinuance of Employer contributions to the Plan, the rights of affected Participants to their Accounts under the Plan as of the date of the termination or discontinuance shall be nonforfeitable. The total amount in each
Participant’s Accounts shall be distributed in a single lump sum, as the Fiduciary Committee shall direct, to him or for his benefit or continued in trust for his benefit. 
  
 (b) While the Employer expects to continue the Plan indefinitely, continuance of the Plan is not assumed as a contractual
obligation. The Board of Directors or its delegate, may terminate the Plan for any reason, in accordance with the procedures set forth in Plan section 13.01. In addition, the Employer reserves the right, on behalf of all Employers, to discontinue
Employer contributions and to terminate the Plan at any time by action of the Board in accordance with the procedures set forth in Plan section 13.01. An Employer reserves the right to discontinue Employer contributions and to terminate the Plan on
behalf of its Employees at any time by action of its board of directors. 
  
 (c) The Employer shall give notice to the Plan Administrator and the applicable Trustee at least 30 days prior to the effective date of termination. The Plan shall terminate without notice on the bankruptcy,
insolvency or termination of business of the Employer, or the complete discontinuance of Employer contributions. 
  
 (d) On termination of the Plan (or in the event of a complete or partial termination, or complete discontinuance of contributions or curtailment), the
interests of present Participants (to the extent affected by such action) in their Account balances as of the date of such event shall be nonforfeitable. The Employer may elect to continue the Trusts in effect, in which case the applicable Trustee
or Custodian shall continue to administer the Trust in accordance with the provisions of the Plan and the applicable Trust or Custody Agreement for the sole benefit of the Participants or Beneficiaries who are then receiving or entitled to receive
future benefits; or the Employer may elect to discontinue the applicable Trust, in which case the benefits of Participants and Beneficiaries shall be distributed as provided in Plan article IX. In the event of a termination, no further contributions
will be made to the Plan by the Employers or by the Participant, and the sole recourse of Participants and Beneficiaries for benefits due under the Plan shall be to Plan assets. 
  
 13.04. No Reversion to Employer 
  
 The Employer has no beneficial interest in the Trust Fund, and no part of the Trust Fund shall ever revert or be repaid to the Employer, directly or
indirectly, except as provided in Plan sections 6.07 and 11.02 if, and to the extent, permitted by the Code, ERISA and applicable regulations thereunder. 
  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	73

 13.05. Merger or Consolidation 
  
 (a) The Plan may not be merged or consolidated with, and its assets or liabilities may not be transferred to, any other plan
unless each person entitled to benefits under the Plan would, if the resulting plan were then terminated, receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit he would have been
entitled to receive immediately before the merger, consolidation, or transfer if the Plan had then terminated. 
  
 (b) Subject to subsection (a), the Trustee, with the consent of the Employer, may transfer the vested Account of a terminated Participant to another
qualified plan or trust that accepts such transfers. Any amounts transferred under this subsection must be fully vested and separately accounted for. 
  

			
	 HomeBanc Mortgage Corporation 401(k) Retirement Plan
 PN: 001
 April 1, 2005 Restatement
	 	74EXHIBIT 10.3

 Exhibit 10.3 
  
 SELLING AGREEMENT 
  
 This Selling Agreement (“Agreement”) made this 17th day of February 2005 by and between KH Funding Company, a Maryland corporation (the
“Company”), and Spencer Edwards Inc., a Colorado corporation (“Seller”) (collectively, the “Parties”). 
  
 WHEREAS, the Company is an issuer of investment debt securities, and has registered or will register the Investment Debt Securities it issues under
the Securities Act of 1933 (“1933 Act”), to the extent required thereby, on Form SB-2 (“Registration Statement”); and 
  
 WHEREAS, the Board of Directors of the Company (“Board”) has established and authorized the issuanceof those types of Investment Debt
Securities listed on Schedule A hereto (each, a “Note” and collectively, the “Notes”), as the same may be amended from time to time by mutual written agreement of the Parties (“ Schedule A”); and 
  
 WHEREAS, Seller desires to act as an authorized seller of the Notes;
and 
  
 WHEREAS, Seller is a broker-dealer registered under
the Securities Exchange Act of 1934 (“1934 Act”) and a member of the National Association of Securities Dealers, Inc. (“NASD”); and 
  
 NOW THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt of which is hereby
acknowledged, the Parties agree as follows: 
  
 1.
Appointment and Obligation of Seller. 
  
 The Company
hereby appoints Seller as an authorized seller of the Notes and Seller hereby accepts such appointment. By accepting this appointment, Seller represents and warrants that it is a business corporation duly organized, validly existing, and in good
standing under the laws of the State of its incorporation as indicated above, and that it has full corporate power, authority and legal right to execute, deliver, and perform its duties and comply with its obligations under this Agreement. Further,
Seller expressly represents that it is a member of the NASD and a registered broker-dealer under the 1934 Act, and in such states as broker-dealer registration may be required for the conduct of its business. 
  
 2. Sale of Notes. 
  
 2.1 Availability of Notes. The Company agrees to issue such Notes as
Seller may sell in accordance with the terms and conditions set forth herein and the disclosures contained in the Company’s Registration Statement. 
  
 2.2 Best
Efforts. Seller agrees to use its best efforts to promote the sale of the Notes, but is not obligated to sell any specific number of Notes. 
  

 1 

 2.3 Rejection or Suspension of Sales: Corporate Actions. Notwithstanding anything herein to the
contrary, the Company may, at any time, reject for any reason any order to purchase any Note. In addition, the Company may suspend or terminate the offering of any Note, if such action is required by law, judicial order, or by regulatory authorities
having jurisdiction, or if the Board, in its sole discretion, determines that such action is in the best interests of the Company. Further, the Company reserves the right at all times to terminate the future offering of Notes and to take any
corporate actions, including, but not limited to, the dissolution, merger, and sale of its assets, solely upon the authorization of its Board. 
  
 2.4 Purchase Payments. Seller shall accept purchase payments for Notes as described in the Company’s then effective prospectus relating to the
Notes as it may be amended or supplemented from time to time (“Prospectus,” unless the context otherwise requires). 
  
 2.5 Manner of Offering. Seller shall offer the Notes for sale in the manner described in the Company’s Prospectus, and only in those
jurisdictions where Seller is legally able to offer or sell such Notes and where the Notes have been properly registered or qualified, or are exempt from registration. 
  
 2.6 Sales Commissions. As compensation for services rendered hereunder, Seller shall be entitled to payment of a
commission on the sale of Certificates in accordance with Schedule A. 
  
 2.7 Order and Payment Processing. Seller shall immediately transmit to the Company any order to purchase Notes. Such order shall consist of a completed application to purchase a Note, accompanied by a check made payable to the
Company, or any other form of payment deemed acceptable by the Company. The Company, in its sole discretion, reserves the right to reject, for any reason, any application for the purchase of a Note. 
  
 2.8 Purchases for Own Account. Seller shall not purchase Notes for its
own account for purposes of resale to the public. Seller may purchase Notes for its own investment account upon its written assurance to the Company that the purchase is for investment purposes only and that such Certificates will not be resold.

  
 2.9 Non-Exclusivity. Notwithstanding anything herein to
the contrary, the Company may appoint other broker-dealers who are registered as such under the 1934 Act and members of the NASD, in addition to Seller to serve as authorized sellers of the Company’s Notes, and the Notes may be directly sold by
the Company without the services of any broker-dealer. 
  
 3.
Withdrawal, Surrender, Conversion and Exchange Requests. 
  
 Seller shall immediately forward any withdrawal, surrender or conversion request, or a request to exchange one type of Note for another that it receives to the Company. All such requests shall be provided in a manner deemed acceptable by
the Company. The Company will make payments of withdrawal and surrender proceeds directly to the Note holder. 
  

 2 

 4. Allocation of Expenses. 
  
 Except as set forth herein, each Party shall bear all expenses of fulfilling its duties and obligations under this
Agreement. However, the Company may bear some of Seller’s initial costs in selling the Certificates, as the Parties may mutually agree from time to time. 
  

5. Marketing Materials. 
  
 5.1 Preparation, Printing, and Distribution. Except as provided below, the Company, at its sole cost, shall be responsible for preparing, printing,
and distributing, or causing the same to be done, all marketing materials to be used in connection with its offer and sale of Notes. Seller may create marketing materials in connection with the sale of the Notes. However, any such marketing
materials shall be created at the Seller’s sole cost, and the Company shall be entitled to use such marketing materials at any time in its sole discretion with consent of Seller, which will not be unreasonably withheld. The Company will
reimburse the Seller for the filing fees paid to the NASD for any marketing materials it may use. 
  
 5.2 Company Approval. Seller shall submit definitive copies of all marketing materials it creates to the Company for its approval; consent shall
not be unreasonably withheld, at least ten (10) business days prior to their first use. The Company shall be deemed to have granted its approval of such marketing materials unless it objects within such ten (10) business day period. 
  
 5.3 Regulatory Approvals. To the extent required and in a timely
manner: (i) Seller shall file with the NASD, or any other regulatory body, as appropriate, all marketing materials it employs (other than the prospectus, annual and semi-annual reports) in the offer and sale of Notes, whether such materials are
created by Seller or the Company for Seller’s use. Seller shall obtain all necessary regulatory approvals of any marketing materials it proposes to employ, and shall, provide to the Company, promptly after receipt thereof, a copy of each NASD
approval of marketing materials submitted to the NASD for review and approval. 
  
 6. Non-Marketing Materials. 
  
 6.1 Note Holder Correspondence. Seller, at its sole cost, shall be responsible for preparing, printing, and distributing, or causing the same to be done, all correspondence with Note holders in its capacity as
an authorized Seller, except for correspondence prepared, printed, and distributed by Seller at the Company’s
request. Seller shall, from time to time, make such correspondence available to the Company for review upon request. 
  
 6.2 Confirmations. The Company, at its sole cost, shall be responsible for preparing, printing, and distributing in a timely manner, or causing the
same to be done, confirmations of Note holder transactions generated by the seller and required to be delivered pursuant to applicable law. The Seller acknowledges its responsibilities as a Broker/Dealer to comply with the confirmation Rules under
the 1934 Act and agrees to provide such information as is required under those rules to the company. 
  
 6.3 Prospectuses, Reports, etc. The Company, at its sole cost, shall be responsible for preparing, printing, and distributing, or causing the same
to be done, all Prospectuses, Reports, and other documents required by applicable law to be provided to Note holders of each series, and for filing such materials with the SEC or any other regulatory body, as appropriate, and shall obtain any
necessary regulatory approvals or clearances of these materials. 
  

 3 

 7. Conduct of Business. 
  
 7.1 General. In selling Notes, Seller shall comply in all respects with the requirements of all federal and state
laws and regulations and the regulations of the NASD, relating to the sale of the Notes. Neither Seller nor any other person is authorized by the Company to give any information or to make any representations, other than those contained in the
Company’s Registration Statement, Prospectus or Reports, and any marketing materials authorized by the Company as provided in section 5 above. 
  
 7.2 Independent Contractor. Seller shall undertake and discharge its obligations hereunder as an independent contractor and shall, unless otherwise
expressly provided or authorized, have no authority to act for or represent the Company in any way and shall not be deemed to be an employee of the Company. Seller shall be responsible for its own conduct and the employment, control and conduct of
its agents and employees, and for injury to such agents or employees or to others through its agents or employees. Seller shall assume full responsibility for its agents and employees under applicable statutes and agrees to pay all employer taxes

  
 7.3 Non-Exclusive Services. Seller’s services
pursuant to this Agreement shall not be deemed to be exclusive, and Seller may render similar services for other companies in the offering of their Notes, consistent with its best efforts obligations set forth herein. 
  
 7.4 Records. Seller shall prepare and maintain full and accurate books
and records of its business as conducted under this Agreement, including transactions by its registered representatives; as such books and records are required to be maintained by applicable law and regulations, including applicable rules of the SEC
and NASD. Such books and records shall remain the property of Seller. Seller shall, however, make such books and records available to the Company or regulatory authorities at any reasonable time and place upon request, 
  
 7.5 Notice. Seller shall promptly provide notice to the Company of any
inquiry or investigation with respect to Seller’s activities initiated or conducted by the NASD, SEC, or any other federal or state regulatory entity. 
  
 8. Termination. 
  
 This Agreement may be terminated at any time without cause and without the payment of any penalty, by the Company or by Seller, on thirty days written
notice to the other party. 
  
 9. Definitions.

  
 Intentionally left blank. 
  
 10. Notices. 
  
 Any notice under this Agreement shall be in writing, addressed and
delivered, or mailed postage prepaid, to the other party at such address as the other party may designate for the receipt of notices. Until further notice to the other party, it is agreed that the address of the Company shall be 10801 Lockwood
Drive, Suite 370, Silver Spring, MD 20901, and the address for Seller shall be 6041 South Syracuse Way, Suite 305, Englewood, CO 80111. 
  

 4 

 11. Severability. 
  
 If any provision of this Agreement shall be held or made invalid by a court decision, statute, rule, or otherwise, the
remainder of this Agreement shall not be affected thereby. 
  
 12. Confidentiality. 
  
 Each party to
this agreement shall maintain the confidentiality of any client list or any other proprietary information that it may acquire in the performance of this agreement. 
  
 13. Applicable Law. 
  

This Agreement shall be governed by the laws of the State of Maryland 
  
 14. Parties to Cooperate. 
  
 The Company and Seller agree to fully cooperate with each other in assuring compliance under this Agreement with all federal
and state laws and regulations. 
  
 15. Indemnification

  
 15.1 By Company. The Company hereby agrees to
indemnify and hold Seller harmless from and against any and all losses, liability, damages and expenses (including reasonable attorneys’ fees and expenses) which Seller may incur or be obligated to pay, or for which it may become liable or be
compelled to pay in any action, claim or proceeding against it, for or by reason of any breach by the Company of any of the representations or covenants of the Company in this Agreement, or, to the extent permitted by law, any such losses,
liabilities, damages or expenses, based on any untrue statements of material facts or material omissions contained in the Registration Statement, including any prospectus contained therein or any amendment or supplement thereto. 
  
 15.2. By Seller. Seller hereby agrees to indemnify and hold the
Company harmless from and against any and all losses, liability, damages and expenses (including reasonable attorneys’ fees and expenses) which the Company may incur or be obligated to pay or for which it may become liable or be compelled to
pay in any action, claim or proceeding against it, for or by reason of any breach of any of the representations or covenants of Seller in this Agreement, including, without limitation, Seller’s failure to comply with the provisions of paragraph
7.1 of this Agreement. 
  
 15.3 Survival of Provisions. The
provisions of this paragraph 15 shall survive the expiration or termination of this Agreement. 
  

 5 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first written above. 

 

	
	 Spencer Edwards, Inc.,

	 A Colorado corporation

	
	 /s/ Gordon Dihle

	 Gordon Dihle

	 Chief Operating Officer

	
	 KH Funding Company,

	 A Maryland corporation

	
	 /s/ Robert L. Harris

	 Robert L. Harris

	 Chief Executive Officer, President

  

 6 

 SCHEDULE A 
  

This Schedule A is an integral part of the Agreement to which it is attached. Capitalized terms used herein have the same meaning as given to them in
the Agreement, except as otherwise noted. This Schedule A sets out the names of the types of Notes covered by the Agreement and the compensation of Seller for the services rendered with respect thereto. 
  
 NAMES OF NOTES 
  
 Series 3 Senior Secured Notes: 
  
 One Day Demand Notes 
  
 Thirty Day Demand Notes 
  
 One Year Fixed Term Notes 
  
 Three Year Fixed Term Notes 
  
 Five Year Fixed
Term Notes 
  
 Series 4 Subordinated Unsecured Notes: 
  
 One Year Fixed Term Notes 
  
 Three Year Fixed Term Notes 
  
 Five Year Fixed Term Notes 
  
 COMPENSATION 
  
 For its services rendered pursuant to the Agreement, Seller shall be entitled to receive as full compensation therefore, the following sales concessions
(subject to any scheduled variations or eliminations of concessions as set forth in the Company’s Prospectus): 
  
 Concession Schedule 
  
 All concessions are due upon the sale of any Note and calculated as a percentage of the initial purchase payment for such Note, except that with respect to the
sale of the One Day and Thirty Day Demand Notes, where the concession is payable quarterly, and shall be calculated on the average daily balance for the respective previous quarter. Trailers are also calculated as a percentage of the initial
purchase payment for such Note and to be paid quarterly after the 1st anniversary. 
  
 A. For Series 3 Senior Secured Notes 
  

			
	 •      One Day Demand Notes
	  	0.50% per annum
	 •      Thirty Day Demand Notes
	  	0.60% per annum

  

 7 

			
	 •      One Year Fixed Term Notes
	  	1.00%
	 •      Three Year Fixed Term Notes
	  	2.00%+0.20% annual trail
	 •      Five Year Fixed Term Notes
	  	3.00%+ 0.20% annual trail

  
 B. For Series 4
Subordinated Notes 
  

			
	 •      One Year Fixed Term Notes
	  	1.00%
	 •      Three Year Fixed Term Notes
	  	2.00%+ 0.40% annual trail
	 •      Five Year Fixed Term Note
	  	3.00%+ 0.40% annual trail

  
 A concession becomes payable only upon
acceptance, by the Company, of the application to purchase a Note, and after payment for such Note has been verified and cleared. The Company will make payment of all concessions and marketing allowance then payable by the 15th of each calendar month. 
  

 8

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