Document:

Pledge Agreement

 EXHIBIT 10.4 
 PLEDGE AGREEMENT 
 (Stock) 
 THIS PLEDGE AGREEMENT (“this Agreement”) dated as of April 3, 2006, is between ALABAMA NATIONAL BANCORPORATION, a Delaware
corporation, as pledgor (the “Pledgor”) and AMSOUTH BANK, an Alabama banking corporation, as pledgee and secured party (the “Lender”). 
 Recitals 
 A. The Pledgor is the holder, beneficially and of record, of certain shares of the
outstanding capital stock of First American Bank, an Alabama banking corporation (the “Corporation”), as more particularly described on Exhibit A attached hereto and made a part hereof (the “Stock”). 
 B. Capitalized terms used in these Recitals have the meanings defined for them above or in Section 1.2. The Pledgor has requested that the Lender
extend a revolving loan (the “Revolving Loan”) to the Pledgor as to be evidenced by that certain Revolving Note dated of even date herewith, executed by the Pledgor in favor of the Lender. To secure the Obligations, and to induce the
Lender to extend the Revolving Loan to the Pledgor, the Pledgor has agreed to execute and deliver this Agreement to the Lender. 
 Agreement 
 NOW, THEREFORE, in consideration of the foregoing Recitals, and to induce the Lender to extend the
Revolving Loan to the Pledgor, the Pledgor agrees with the Lender as follows: 
 ARTICLE 1 
 Rules of Construction and Definitions 
 SECTION 1.1 Rules of Construction. 
 For the purposes of this Agreement, except as otherwise expressly provided
or unless the context otherwise requires: 
 (a) Words of masculine, feminine or neuter gender include the correlative words of other genders.
Singular revolving include the plural as well as the singular, and vice versa. 
 (b) All references herein to designated
“Articles,” “Sections” and other subdivisions or to lettered Exhibits are to the designated Articles, Sections and subdivisions hereof and the Exhibits annexed hereto unless expressly otherwise designated in context. All Article,
Section, other subdivision and Exhibit captions herein are used for reference only and do not limit or describe the scope or intent of, or in any way affect, this Agreement. 

 (c) The terms “include,” “including,” and similar terms shall be construed as if
followed by the phrase “without being limited to.” 
 (d) The terms “herein,” “hereof” and
“hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section, other subdivision or Exhibit. 
 (e) All Recitals set forth in, and all Exhibits to, this Agreement are hereby incorporated in this Agreement by reference. 
 (f) No inference in favor of or against any party shall be drawn from the fact that such party or such party’s counsel has drafted any portion hereof. 
 (g) All references in this Agreement to a separate instrument are to such separate instrument as the same may be amended or supplemented from time to
time pursuant to the applicable provisions thereof. 
 SECTION 1.2 Definitions. 
 The following terms are defined as follows: 
 (a) Unless otherwise defined herein, terms used in this Agreement that are defined in Article 9 of the Alabama Uniform Commercial Code (the “UCC”) have the meanings defined for them therein. 
 (b) Additional Stock is defined in Section 2.2. 
 (c) Business Day means any day, excluding Saturday and Sunday, on which the Lender’s main office in Birmingham, Alabama, is open to the public for carrying on substantially all of its banking
business. 
 (d) Default Rate means a rate of interest equal to four percentage points (four hundred basis points) in excess of
the highest interest rate that would otherwise be payable on the principal amount of the Revolving Loan under the Revolving Note from time to time in the absence of the existence of a default, or the maximum rate permitted by law, whichever is less.

 (e) Event of Default is defined in Section 4.1. An Event of Default “exists” if the same has occurred and is
continuing. 
 (f) Governmental Authority means any national, state, county, municipal or other government, domestic or
foreign, and any agency, authority, department, commission, bureau, board, court or other instrumentality thereof. 
 (g) Lien
means any mortgage, pledge, assignment, charge, encumbrance, lien, security title, security interest or other preferential arrangement. 
 (h) Obligations means (1) the payment of all amounts now or hereafter becoming due and payable under the Revolving Note, including the principal amount of the Revolving 
  

 2 

 Loan, all interest thereon (including interest that, but for the filing of a petition in bankruptcy, would accrue on any
such principal) and all other fees, charges and costs (including attorneys’ fees and disbursements) payable in connection therewith; (2) the observance and performance by the Pledgor of all of the provisions of the Revolving Note;
(3) the payment of all sums advanced or paid by the Lender in exercising any of its rights, powers or remedies under the Revolving Note, and all interest (including post-bankruptcy petition interest, as aforesaid) on such sums provided for
herein or therein; (4) the payment of all amounts now or hereafter becoming due and payable under any agreement between the Pledgor and the Lender now existing or hereafter entered into, which provides for an interest rate or commodity swap,
cap, floor, collar, forward foreign exchange transaction, currency swap, cross-currency rate swap, currency option, or any combination of, or option with respect to, these or similar transactions, for the purpose of hedging such Pledgor’s
exposure to fluctuations in interest rates, currency valuations or commodity prices, and (5) all renewals, extensions, modifications and amendments of any of the foregoing, whether or not any renewal, extension, modification or amendment
agreement is executed in connection therewith. 
 (i) Obligors means all “obligors” as defined in Article 9 of the
UCC, the Pledgor and each other person, if any, executing any Security Document as a grantor, and any other maker, endorser, surety, guarantor or other person now or hereafter liable for the payment or performance, in whole or in part, of any of the
Obligations. 
 (j) Permitted Encumbrances means any Liens and other matters affecting title to the Property that are described
in Exhibit C. 
 (k) Person (whether or not capitalized) includes natural persons, sole proprietorships,
corporations, trusts, unincorporated organizations, associations, companies, institutions, entities, joint ventures, partnerships, limited liability companies and Governmental Authorities. 
 (l) Pledged Stock is defined in Section 2.2. 
 (m) Property is defined in Section 2.2. 
 (n) Security Documents means this
Agreement and all documents that now or hereafter grant or purport to grant to the Lender any guaranty, collateral or other security for any of the Obligations. 
 ARTICLE 2  
 Security Agreement 
 SECTION 2.1 Pledge of Stock. 
 As security for the Obligations, the Pledgor hereby grants to the Lender security title to and a continuing security interest in, a lien upon and assigns, transfers, conveys, pledges and hypothecates to the Lender, all of the Pledgor’s
right, title and interest in and to the Stock and all proceeds and supporting obligations thereof, and, as applicable, the Pledgor hereby delivers to the Lender the stock certificate(s) evidencing the Stock, as described more fully in
Exhibit A, together with separate assignments thereof, to be held by the Lender upon the terms and conditions set forth in this Agreement. 
  

 3 

 SECTION 2.2 Pledge of Additional Stock. 
 If the Pledgor shall acquire by exchange or replacement any additional shares of capital stock, of whatever class or description (“Additional
Stock”) at any time after the date hereof, the Pledgor hereby grants to the Lender a security interest in, and assigns, transfers, conveys, pledges and hypothecates to the Lender, all of the Pledgor’s right, title and interest in and to
the Additional Stock and such certificates, and immediately upon receipt thereof the Pledgor shall pledge and deposit the Additional Stock with the Lender and shall deliver to the Lender certificates therefor registered in the name of the Pledgor,
together with executed separate assignments thereof, to be held by the Lender under this Agreement. The Stock, the Additional Stock, and any stock or other securities issued in exchange therefor or replacement thereof, are hereinafter together
called the “Pledged Stock,” and the Pledged Stock and all proceeds thereof and all other securities and moneys received and at the time held by the Lender hereunder are hereinafter together called the “Property,” all of which
shall be subject to the Liens granted to the Lender under this Agreement. 
 SECTION 2.3 Dividends and Other Distributions.

 Unless an Event of Default exists, all cash dividends paid on the Pledged Stock shall be paid to the Pledgor, except that all cash
dividends payable on the Pledged Stock that are determined by the Lender to represent in whole or in part an extraordinary, liquidating or other distribution in return of capital shall be paid to the Lender and retained by it as Property. The Lender
shall also be entitled to receive directly and to retain as Property: 
 (a) all stock and other securities or property (other than cash) paid
or distributed with respect to the Pledged Stock by way of dividend; 
 (b) all stock and other securities or property (including cash) paid
or distributed with respect to the Pledged Stock by way of stock-split, spin-off, split-up, reclassification, combination of shares or similar or other corporate rearrangement; and 
 (c) all stock and other securities or property (including cash) that may be paid or distributed with respect to the Pledged Stock by reason of any
consolidation, merger, exchange of stock, conveyance of assets, liquidation or similar corporate reorganization. 
 SECTION 2.4
Voting While No Event of Default. 
 Unless an Event of Default exists, the Pledgor shall have the right to vote any and all shares
of the Pledged Stock and to give consents, waivers and ratifications with respect to the Property and otherwise act with respect thereto. All such rights of the Pledgor to vote and to give consents, waivers and ratifications shall cease if an Event
of Default exists. 
  

 4 

 ARTICLE 3 
 Representations, Warranties and Covenants 
 SECTION 3.1 Representations and
Warranties. 
 The Pledgor represents and warrants to the Lender that (a) subject to Permitted Encumbrances, the Pledgor has the
power to transfer or is the holder of record and sole beneficial owner of the Stock (which is fully issued and non-assessable), free of Liens and adverse claims of any kind, except Permitted Encumbrances; (b) the Pledgor has a good right to
grant to the Lender the Liens in the Stock purported to be granted under this Agreement; (c) there are no outstanding subscriptions, options, rights, warrants, calls, commitments or agreements of any kind to acquire or transfer any of the Stock
or to issue any additional shares of the capital stock, and there are no securities in existence that are convertible into any shares of such capital stock; (d) to the best of the Pledgor’s knowledge, no consent, authorization or other
action by, and no notice to or filing with, any other person (including any stockholder, partner or creditor of the Pledgor and any Governmental Authority) is required for (1) the execution and delivery of this Agreement by the Pledgor,
(2) the granting to the Lender of the Liens on the Property under this Agreement, or (3) the exercise by the Lender of the rights, powers and remedies granted to it under this Agreement, except as may be required in connection with any
disposition by the Lender of the Property under laws affecting the offering and sale of securities generally; and (e) the location (including addresses, if applicable) of (1) each of the Pledgor’s places of business, (2) the
Pledgor’s chief executive office, and (3) the Pledgor’s state of incorporation or registration (if the Pledgor was created by such state filing), are correctly and completely set forth on Exhibit D. The Pledgor’s legal
name is as set forth in the first paragraph to this Agreement. No change has occurred in any of the foregoing in the five years immediately preceding the execution of this Agreement. 
 SECTION 3.2 Encumbrances and Dispositions. 
 The Pledgor shall not (a) encumber any of the Property, or permit any of the Property to be encumbered, with any kind of Lien, other than Permitted Encumbrances, (b) sell, transfer or otherwise dispose of,
or grant any option or warrant with respect to, any of the Property, or (c) permit the Corporation to issue any additional shares of its capital stock (to the extent that the Pledgor has the ability to prevent such issuance). 
 SECTION 3.3 Taxes and Assessments. 
 The Pledgor shall pay when due all taxes, assessments and other charges levied or assessed against any of the Property, and all other claims that are or may become Liens against any of the Property, except any that
are Permitted Encumbrances; and should default be made in the payment of same, the Lender, at its option, may pay them. 
 SECTION 3.4 Filing Fees and Taxes. 
 The Pledgor agrees, to the extent permitted by law, to pay all recording and
filing fees, revenue stamps, taxes and other expenses and charges payable in connection with the execution and delivery of the Revolving Note or this Agreement, and the recording, filing, satisfaction, continuation and release thereof. 

 

 5 

 SECTION 3.5 Control. 
 The Pledgor hereby grants control of the Property to the Lender, and the Pledgor shall take all actions requested by the Lender that the Lender deems in
its sole discretion advisable to further establish such control, including obtaining control agreements from the applicable holders of the Property. 
 SECTION 3.6 Authorization. 
 The Pledgor authorizes the Lender to perfect, preserve,
continue, amend and maintain the Lender’s interest in the Property by whatever actions the Lender in its sole discretion deems appropriate under applicable law. The Pledgor shall assist and cooperate with the Lender in taking such actions and
shall pay all costs and expenses incurred by the Lender in taking such actions. Such actions may include without limitation (1) the Lender’s obtaining control of the Property; (2) the Lender’s filing of financing statements
describing the Property; or (3) the Lender’s taking possession of the Property. 
 SECTION 3.7 Further Assurances.

 At the Pledgor’s cost and expense and upon request of the Lender, the Pledgor shall duly execute and deliver, or cause to be duly
executed and delivered, to the Lender such further instruments and do and cause to be done such further acts as may be reasonably necessary or proper in the opinion of the Lender or its counsel to perfect, preserve and protect the validity of the
Liens of the Lender in the Property and to carry out more effectively the provisions and purposes of this Agreement. 
 SECTION 3.8
Attorney-in-Fact. 
 The Pledgor hereby constitutes and appoints the Lender, or any other person whom the Lender may designate, as
the Pledgor’s attorney-in-fact, at the Pledgor’s sole cost and expense, effective upon the existence of any Event of Default, with full authority in the place and stead of the Pledgor and in the name of the Pledgor or otherwise, from time
to time in the Lender’s discretion to take any action (a) that the Pledgor has agreed, but has failed, to take under this Agreement, (b) that the Lender in its sole discretion deems necessary or advisable to maintain, preserve or
protect the security intended to be afforded by this Agreement, or (c) that the Lender may deem necessary or advisable to accomplish the purposes of this Agreement and the Revolving Note. 
 SECTION 3.9 Release. 
 The
Pledgor shall not file a release, amendment, partial release, or termination statement with respect to any of the Property without the Lender’s prior written consent. 
  

 6 

 SECTION 3.10 Application of Payments. 
 The Pledgor irrevocably waives the right to direct the application of any payments and collections at any time or times hereafter received by the Lender
from or on behalf of the Pledgor, and the Pledgor irrevocably agrees that the Lender shall have the continuing exclusive right to apply and reapply any and all such payments and collections received at any time or times hereafter by the Lender or
its agent against the Obligations, in such order and in such proportions as the Lender may deem advisable, whether due or not, and notwithstanding any entry by the Lender upon its books and records. 
 SECTION 3.11 Change of Certain Items. 
 Without the Lender’s prior written consent, the Pledgor shall not (1) add to or change any of the locations set forth in Exhibit D; (2) alter or change its legal name; (3) change the state
of its incorporation or registration (if the Pledgor was created by such state filing); (4) alter or change its legal form or status (corporate, partnership, or otherwise, if an entity); or (5) merge, in one transaction or in a series of
related transactions, into or consolidate with any other entity (if an entity). 
 SECTION 3.12 Risk of Loss. 

The risk of loss or damage to the Property is on the Pledgor whether or not the Property is held by or controlled by the Lender. 
 SECTION 3.13 Certification of the Pledgor. 
 Upon the request of the Lender, the Pledgor shall give the Lender a certification, in written or other record form, attesting that the Pledgor has not sold or otherwise transferred any of the Property unless expressly
permitted by this Agreement and has not changed any of the following without the prior written consent of the Lender: (a) the Pledgor’s legal name; (b) the state of the Pledgor’s incorporation or registration (if the Pledgor was
created by such state filing); (c) the Pledgor’s chief executive office; and (d) the Pledgor’s principal place of business. 
 SECTION 3.14 Use and Operation. 
 Whenever any of the Property is in the possession or control of the Lender, or
whether for perfection, enforcement or otherwise, the Pledgor agrees to the Lender’s unrestricted use and operation of the Property. The Pledgor waives any rights it may have to require the Lender to keep all nonfungible property segregated or
separately identifiable and agrees that the Lender may commingle all of the Property (fungible or otherwise) with its own without any liability to the Pledgor for so doing. 
  

 7 

 ARTICLE 4 
 Events of Default 
 SECTION 4.1 Events of Default. 
 The occurrence of any of the following events shall constitute an event of default (an “Event of Default”) under this Agreement (whatever the
reason for such event and whether or not it shall be voluntary or involuntary or be effected by operation of law or pursuant to any Governmental Requirement): 
 (a) any representation or warranty made in this Agreement or in the Revolving Note shall prove to be false or misleading in any material respect as of the time made; or 
 (b) any report, certificate, financial statement or other instrument furnished in connection with the Revolving Note or this Agreement, shall prove to be
false or misleading in any material respect as of the time furnished; or 
 (c) default shall be made in the payment when due of any of the
Obligations; or 
 (d) default shall be made in the due observance or performance of any covenant, condition or agreement on the part of the
Pledgor to be observed or performed pursuant to the terms of this Agreement (other than any covenant, condition or agreement, default in the observance or performance of which is elsewhere in this Section 4.1 specifically dealt with) and such
default shall continue unremedied for a period of thirty (30) calendar days; or 
 (e) any default or event of default, as therein
defined, shall occur under the Revolving Note (after giving effect to any applicable notice, grace or cure period specified therein). 
 ARTICLE 5 
 Remedies 
 SECTION 5.1 Acceleration of Obligations. 
 If an Event of Default exists that does not
already result in the automatic acceleration of the Obligations under the Revolving Note, the Lender shall have the right without further notice to the Pledgor (except any such notice as may be specifically required under the Revolving Note) to
declare all of the Obligations immediately due and payable. 
 SECTION 5.2 Remedies. 
 If an Event of Default exists, the Lender shall be entitled to exercise all of the rights, powers and remedies vested in it by this Agreement and
applicable law (including all rights of a secured party under the UCC) for the protection and enforcement of its rights with respect to the Property, including the rights: 
 (a) to receive all amounts payable with respect to the Property otherwise payable to the Pledgor under Section 2.3 (except as otherwise provided with respect to the payment of taxes); 
  

 8 

 (b) to transfer all or any part of the Pledged Stock into the Lender’s name or the name of its
nominee and to cause new certificates to be issued in the name of such transferee; 
 (c) to vote all or any part of the Pledged Stock,
whether or not transferred into the name of the Lender or its nominee, and to give all consents, waivers and ratifications with respect to the Property and otherwise act with respect thereto as though the Lender were the outright owner thereof (the
Pledgor hereby irrevocably constituting and appointing the Lender the proxy and attorney-in-fact of the Pledgor, with full power of substitution, to do so); 
 (d) to settle, adjust, compromise and arrange all accounts, controversies, claims and demands in relation to any Property; 
 (e) to execute all contracts, agreements, documents and instruments, to bring, defend and abandon all actions and proceedings, and to take all other actions, in relation to any Property as the Lender in its sole
discretion may determine; and 
 (f) at any time or from time to time to sell, assign and deliver, or grant options to purchase, lease,
license or otherwise dispose of all or any part of the Property, or any interest therein, at any public or private sale, at any exchange, broker’s board or at any of the Lender’s offices, in one or more parcels, without demand of
performance, advertisement or notice (to the extent permitted by law) of intention to sell or of the time or place of sale or adjournment thereof or otherwise (all of which are hereby waived by the Pledgor), for cash, on credit, or for other
property, for immediate or future delivery without any assumption of credit risk, and for such prices and on such terms as the Lender in its sole discretion may deem to be commercially reasonable. The Lender shall not be obligated to make any sale
of Property regardless of notice having been given. The Lender may adjourn any sale from time to time by announcement at the time and place fixed therefor, and any such sale may, without further notice, be made at the time and place to which it was
adjourned. The Lender shall not be liable for any failure to collect or realize upon any Property or for any delay in so doing, or shall it be obligated to take any action whatsoever with respect thereto. 
 SECTION 5.3 Non-Public Sale. 
 If at any time when the Lender shall determine to exercise its right to sell all or any of the Pledged Stock and other securities pursuant to Section 5.2, such Pledged Stock and other securities or the part thereof to be sold shall not
for any reason be effectively registered under the Securities Act of 1933, as then in effect, the Lender may, in its sole discretion, sell such Pledged Stock and other securities or part thereof by private sale in such manner and under such
circumstances as the Lender may deem necessary or advisable in order that such sale may legally be effected without such registration. Without limiting the generality of the foregoing, in any such event the Lender, in its sole discretion
(a) may proceed to make such private sale notwithstanding that a registration statement registering any such Pledged Stock shall have been filed under such Securities Act, (b) may approach and negotiate with as few as one possible

  

 9 

 purchaser to effect such sale, and (c) may restrict such sale to a purchaser who will represent and agree that such
purchaser is purchasing for its own account, for investment, and not with a view to the distribution or sale of any such Pledged Stock and who will satisfy such other conditions as at such time may be required for lawful non-public sale. In the
event of any such sale, the Lender shall incur no responsibility or liability for selling all or any part of the Pledged Stock at a price which the Lender, in its sole discretion, may deem reasonable under the circumstances, notwithstanding the
possibility that a substantially higher price might be realized if the sale were deferred until after registration. 
 SECTION 5.4
Reasonable Care. 
 The Lender shall be deemed to have exercised reasonable care in the custody and preservation of any Property in
its possession if it takes such reasonable actions for that purpose as the Pledgor shall request in writing, but the Lender shall have sole power to determine whether such actions are reasonable. Any omission to do any act not requested by the
Pledgor shall not be deemed a failure to exercise reasonable care. 
 SECTION 5.5 Waiver of Redemption, Marshalling, etc.

 The Pledgor hereby waives and releases to the fullest extent permitted by law any right or equity of redemption with respect to the
Property, whether before or after sale hereunder, and all rights, if any, of marshalling the Property and any other security for the Obligations or otherwise. At any such sale, unless prohibited by applicable law, the Lender may bid for and purchase
all or any part of the Property so sold free from any such right or equity of redemption. 
 SECTION 5.6 Application of
Proceeds. 
 The Lender shall have the continuing exclusive right to apply and reapply the proceeds, including cash and noncash
proceeds (sales on credit or notes and otherwise) resulting from the exercise of any of the rights, powers and remedies of the Lender under this Agreement, against the Obligations in such order and in such proportions as the Lender may deem
advisable. All expenses incurred securing the possession of Property, moving, storing, repairing or finishing the manufacture of Property, and preparing the same for sale, shall become part of the Obligations secured hereby. The Pledgor shall remain
liable to the Lender for any deficiency. 
 SECTION 5.7 Additional Security, etc. 
 Without notice to or consent of the Pledgor, and without impairment of the Liens and rights created by this Agreement, the Lender may accept from the
Pledgor, or any other Obligor or any other person, additional security for the Obligations. Neither the giving of this Agreement nor the acceptance of any such additional security shall prevent the Lender from resorting first to any such additional
security, or first to the Liens created by this Agreement, without affecting the Liens and rights of the Lender under this Agreement. 
  

 10 

 SECTION 5.8 Default Rate. 
 If an Event of Default exists, the Obligations shall bear interest at the Default Rate, until the earlier of (a) such time as all of the Obligations
are paid in full or (b) no such Event of Default exists. 
 SECTION 5.9 Remedies Cumulative. 
 The rights and remedies of the Lender under this Agreement are cumulative and not exclusive of any other rights or remedies now or hereafter existing at
law or in equity. 
 SECTION 5.10 No Obligation to Pursue Others. 
 The Pledgor agrees that the Lender has no obligation to attempt to satisfy the Obligations by collecting them from any other person liable for them and
the Lender may release, modify or waive any collateral provided by any other person to secure any of the Obligations, all without affecting the Lender’s rights against the Pledgor. The Pledgor waives any right it may have to require the Lender
to pursue any other person for any of the Obligations, and that each of the Obligations may be enforced against the Pledgor without the necessity of joining any other Obligor, any other holders of lien and any of the Property or any other person, as
a party. 
 ARTICLE 6 
 Miscellaneous 
 SECTION 6.1 Notices. 
 (i) Any request, demand, authorization, direction, notice, consent, waiver or other document provided or permitted by this Agreement to be made upon,
given or furnished to, or filed with, the Pledgor or the Lender must (except as otherwise provided in this Agreement) be in writing and be delivered by one of the following means: (2) by personal delivery at the hand delivery address specified
below, (3) by first-class, registered or certified mail, postage prepaid and addressed as specified below, or (4) if facsimile transmission facilities for such party are identified below or pursuant to a separate notice from such party,
sent by facsimile transmission to the number specified below or in such notice. 
 (ii) The hand delivery address, mailing address and (if
applicable) facsimile transmission number for receipt of notice or other documents by such parties are as follows: 
 Pledgor 
 By hand: 
 1927 First Avenue North 
 Birmingham, Alabama 35203 
 Attention: Chief Financial Officer 
  

 11 

 By mail: 
 Post Office Box 10686 
 Birmingham, Alabama 35202 
 Attention: Chief Financial Officer 
 By
facsimile: 
 (205) 583-3275 
 Lender

 By hand: 
 Upper Lobby, AmSouth
Center 
 1900 Fifth Avenue North 
 Birmingham, Alabama 35203 
 Attention: Birmingham Commercial Banking Department 
 By mail: 
 P. O. Box 11007 
 Birmingham, Alabama 35288 
 Attention:
Birmingham Commercial Banking Department 
 By facsimile: 
 (205) 801-0157 
 Any of such parties may change the address or facsimile transmission notice for receiving any such notice
or other document by giving notice of the change to the other parties named in this Section 6.1. 
 (iii) Any such notice or other
document shall be deemed delivered when actually received by the party to whom directed (or, if such party is not a natural person, to an officer, director, partner, member or other legal representative of the party) at the address or number
specified pursuant to this Section 6.1, or, if sent by mail, three Business Days after such notice or document is deposited in the United States mail, addressed as provided above. 
 (iv) Five Business Days’ written notice to the Pledgor as provided above shall constitute reasonable notification to the Pledgor when notification
is required by law; provided, however, that nothing contained in the foregoing shall be construed as requiring five Business Days’ notice if, under applicable law and the circumstances then existing, a shorter period of time would constitute
reasonable notice. 
  

 12 

 SECTION 6.2 Expenses. 
 The Pledgor shall promptly on demand pay all costs and expenses, including the fees and disbursements of counsel to the Lender, incurred by the Lender in
connection with (a) the negotiation, preparation and review of this Agreement (whether or not the transactions contemplated by this Agreement shall be consummated), (b) the enforcement of this Agreement, (c) the custody and
preservation of the Property, (d) the protection or perfection of the Lender’s rights and interests under this Agreement in the Property, (e) the exercise by or on behalf of the Lender of any of its rights, powers or remedies under
this Agreement and (f) the prosecution or defense of any action or proceeding by or against the Lender, the Pledgor, any other Obligor, or any one or more of them, concerning any matter related to this Agreement, any of the Property or any of
the Obligations. All such amounts shall bear interest from the date demand is made at the Default Rate and shall be included in the Obligations secured hereby. The Pledgor’s obligations under this Section 6.2 shall survive the payment in
full of the Obligations and the termination of this Agreement. 
 SECTION 6.3 Heirs, Successors and Assigns. 

Whenever in this Agreement any party hereto is referred to, such reference shall be deemed to include the heirs, successors and assigns of such party
or any other person who becomes bound by this Agreement as a debtor, except that the Pledgor may not assign or transfer this Agreement without the prior written consent of the Lender; and all covenants and agreements of the Pledgor contained in this
Agreement shall bind the Pledgor’s heirs, successors and assigns or any other person who becomes bound by this Agreement as a debtor and shall inure to the benefit of the successors and assigns of the Lender. 
 SECTION 6.4 Independent Obligations. 
 The Pledgor agrees that each of the obligations of the Pledgor to the Lender under this Agreement may be enforced against the Pledgor without the necessity of joining any other Obligor, any other holders of Liens in
any Property or any other person, as a party. 
 SECTION 6.5 Governing Law. 
 This Agreement shall be construed in accordance with and governed by Title 9 of the U.S. Code and the internal laws of the State of Alabama (without
regard to conflict of law principles) except as required by mandatory provisions of law and except to the extent that the validity and perfection of the Liens on the Property are governed by the laws of any jurisdiction other than the State of
Alabama. 
 SECTION 6.6 Date of Agreement. 
 The date of this Agreement is intended as a date for the convenient identification of this Agreement and is not intended to indicate that this Agreement was executed and delivered on that date. 
  

 13 

 SECTION 6.7 Separability Clause. 
 If any provision of the Revolving Note or this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby. 
 SECTION 6.8 Counterparts. 
 This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed an original, but all such counterparts shall
together constitute but one and the same agreement. 
 SECTION 6.9 No Oral Agreements. 
 This Agreement is the final expression of the agreement between the parties hereto, and this Agreement may not be contradicted by evidence of any prior
oral agreement between such parties. All previous oral agreements between the parties hereto have been incorporated into this Agreement and the Revolving Note, and there is no unwritten oral agreement between the parties hereto in existence.

 SECTION 6.10 Waiver and Election. 
 The exercise by the Lender of any option given under this Agreement shall not constitute a waiver of the right to exercise any other option. No failure or delay on the part of the Lender in exercising any right, power
or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any further exercise thereof or the exercise of any other right, power or remedy. No modification,
termination or waiver of any provisions of the Revolving Note or this Agreement, nor consent to any departure by the Pledgor therefrom, shall be effective unless in writing and signed by an authorized officer of the Lender, and then such waiver or
consent shall be effective only in the specific instance and for the specific purpose for which given. No notice to or demand on the Pledgor in any case shall entitle the Pledgor to any other or further notice or demand in similar or other
circumstances. 
 SECTION 6.11 No Obligations of Lender; Indemnification. 
 The Lender does not by virtue of this Agreement or any of the transactions contemplated by the Revolving Note assume any duties, liabilities or
obligations with respect to any of the Property unless expressly assumed by the Lender under a separate agreement in writing, and this Agreement shall not be deemed to confer on the Lender any duties or obligations that would make the Lender
directly or derivatively liable for any person’s negligent, reckless or wilful conduct. The Pledgor agrees to indemnify and hold the Lender harmless against and with respect to any damage, claim, action, loss, cost, expense, liability, penalty
or interest (including attorney’s fees) and all costs and expenses of all actions, suits, proceedings, demands, assessments, claims and judgments directly or indirectly resulting from, occurring in connection with, or arising out of:
(a) any inaccurate representation made by the Pledgor in this Agreement or any the Revolving Note; (b) any breach of any of the warranties or obligations of the Pledgor under this Agreement or the Revolving Note; and (c) the Property,
or the Liens of the Lender thereon. The provisions of this Section 6.11 shall survive the payment of the Obligations in full and the termination, satisfaction, release (in whole or in part) and foreclosure of this Agreement. 
  

 14 

 SECTION 6.12 Advances by the Lender. 
 If the Pledgor shall fail to comply with any of the provisions of this Agreement in any material respect, the Lender may (but shall not be required to)
make advances to perform the same, and where necessary enter any premises where any Property is located for the purpose of performing the Pledgor’s obligations under any such provision. The Pledgor agrees to repay all such sums advanced upon
demand, with interest from the date such advances are made at the Default Rate, and all sums so advanced with interest shall be a part of the Obligations. The making of any such advances shall not be construed as a waiver by the Lender of any Event
of Default resulting from the Pledgor’s failure to pay such amounts. 
 SECTION 6.13 Rights, Liens and Obligations
Absolute. 
 All rights of the Lender hereunder, all Liens granted to the Lender hereunder, and all obligations of the Pledgor
hereunder, shall be absolute and unconditional and shall not be affected by (a) any lack of validity or enforceability as to any other person of the Revolving Note or any Security Document, (b) any change in the time, manner or place of
payment of, or any other term of the Obligations, (c) any amendment or waiver of any of the provisions of the Revolving Note or any Security Document as to any other person, and (d) any exchange, release or non-perfection of any other
collateral or any release, termination or waiver of any guaranty, for any of the Obligations. 
 SECTION 6.14 Termination.

 This Agreement and the Lender’s Liens in the Property hereunder will not be terminated until one of the Lender’s officers
signs a written termination agreement. Except as otherwise expressly provided for in this Agreement, no termination of this Agreement shall in any way affect or impair the representations, warranties, agreements or other obligations of the Pledgor
or the rights, powers and remedies of the Lender under this Agreement with respect to any transaction or event occurring prior to such termination, all of which shall survive such termination. Even if all of the Obligations outstanding at any one
time should be paid in full, this Agreement will continue to secure any Obligations that might later be owed the Lender until such written termination agreement has been executed by the Lender. 
 SECTION 6.15 Reinstatement. 
 This Agreement, the obligations of the Pledgor hereunder, and the Liens, rights, powers and remedies of the Lender hereunder, shall continue to be effective, or be automatically reinstated, as the case may be, if at any time any amount
applied to the payment of any of the Obligations is rescinded or must otherwise be restored or returned to the Pledgor, any Obligor, or any other person (or paid to the creditors of any of them, or to any custodian, receiver, trustee or other
officer with similar powers with respect to any of them, or with respect to any part of their property) upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Pledgor, any Obligor or any such person, or upon or as a
result of the appointment of a custodian, receiver, trustee or other officer with respect to any of them, or with respect to any part of their property, or otherwise, all as though such payment had not been made. 
  

 15 

 SECTION 6.16 Submission to Jurisdiction. 
 The Pledgor irrevocably (a) acknowledges that this Agreement will be accepted by the Lender and performed by the Pledgor in the State of Alabama;
(b) submits to the jurisdiction of each state or federal court sitting in Jefferson County, Alabama (collectively, the “Courts”) over any suit, action or proceeding arising out of or relating to this Agreement (to enforce the
arbitration provisions hereof or, if the arbitration provisions are found to be unenforceable, to determine any issues arising out of or relating to this Agreement) or any of the other Revolving Note (individually, an “Agreement Action”);
(c) waives, to the fullest extent permitted by law, any objection or defense that the Pledgor may now or hereafter have based on improper venue, lack of personal jurisdiction, inconvenience of forum or any similar matter in any Agreement Action
brought in any of the Courts; (d) agrees that final judgment in any Agreement Action brought in any of the Courts shall be conclusive and binding upon the Pledgor and may be enforced in any other court to the jurisdiction of which the Pledgor
is subject, by a suit upon such judgment; (e) consents to the service of process on the Pledgor in any Agreement Action by the mailing of a copy thereof by registered or certified mail, postage prepaid, to the Pledgor at the Pledgor’s
address designated in or pursuant to Section 6.1; (f) agrees that service in accordance with Section 6.16(e) shall in every respect be effective and binding on the Pledgor to the same extent as though served on the Pledgor in person
by a person duly authorized to serve such process; and (g) AGREES THAT THE PROVISIONS OF THIS SECTION, EVEN IF FOUND NOT TO BE STRICTLY ENFORCEABLE BY ANY COURT, SHALL CONSTITUTE “FAIR WARNING” TO THE PLEDGOR THAT THE EXECUTION OF
THIS AGREEMENT MAY SUBJECT THE PLEDGOR TO THE JURISDICTION OF EACH STATE OR FEDERAL COURT SITTING IN JEFFERSON COUNTY, ALABAMA WITH RESPECT TO ANY AGREEMENT ACTIONS, AND THAT IT IS FORESEEABLE BY THE PLEDGOR THAT THE PLEDGOR MAY BE SUBJECTED TO THE
JURISDICTION OF SUCH COURTS AND MAY BE SUED IN THE STATE OF ALABAMA IN ANY AGREEMENT ACTIONS. Nothing in this Section 6.16 shall limit or restrict the Lender’s right to serve process or bring Agreement Actions in manners and in courts
otherwise than as herein provided. 
 SECTION 6.17 Arbitration. 
 (a) The Pledgor represents to the Lender that its business and affairs constitute substantial interstate commerce and that it contemplates using the
proceeds of the Revolving Note in substantial interstate commerce. Except as otherwise specifically set forth below, any action, dispute, claim, counterclaim or controversy (“Dispute” or “Disputes”), between or among the Lender,
the Pledgor or any other Obligor, including any claim based on or arising from an alleged tort, shall be resolved by arbitration as set forth below. As used herein, Disputes shall include all actions, disputes, claims, counterclaims or controversies
arising in connection with the Revolving Note, any extension of or commitment to extend credit by the Lender, any collection of any indebtedness owed to the Lender, any security or collateral given to the Lender, any action taken (or any omission to
take any action) in connection with any of the foregoing, any past, present and future agreement between or among the Lender, the Pledgor or any other 
  

 16 

 Obligor (including the Revolving Note and any Security Document), and any past, present or future transactions between or
among the Lender, the Pledgor or any other Obligor. Without limiting the generality of the foregoing, Disputes shall include actions commonly referred to as “lender liability” actions. 
 (b) All Disputes shall be resolved by binding arbitration in accordance with Title 9 of the U.S. Code and the Commercial Arbitration Rules of the
American Arbitration Association (the “AAA”). Defenses based on statutes of limitation, estoppel, waiver, laches and similar doctrines, that would otherwise be applicable to an action brought by a party, shall be applicable in any such
arbitration proceeding, and the commencement of an arbitration proceeding with respect to this Agreement shall be deemed the commencement of an action for such purposes. 
 (c) Notwithstanding the foregoing, the Pledgor agrees that the Lender shall have the option, but not the obligation, to submit to and pursue in a court of law any claim against the Pledgor or any other Obligor for a
debt due. The Pledgor and each other Obligor agrees that, if the Lender pursues such a claim in a court of law, (1) failure of the Lender to assert any additional claim in such proceeding shall not be deemed a waiver of, or estoppel to pursue,
such claim as a claim or counterclaim in arbitration as set forth above, and (2) the institution or maintenance of a judicial action hereunder shall not constitute a waiver of the right of any party to submit any other action, dispute, claim or
controversy as described above, even though arising out of the same transaction or occurrence, to binding arbitration as set forth herein. If the Pledgor asserts a claim against the Lender in arbitration or otherwise during the pendency of a claim
brought by the Lender in a court of law, the court action shall be stayed and the parties shall submit to arbitration all claims. 
 (d) No
provision of, nor the exercise of any rights under this Section, shall limit the right of any party (1) to foreclose against any real or personal property collateral by exercise of a power of sale under any Security Document, or by exercise of
any rights of foreclosure or of sale under applicable law, (2) to exercise self-help remedies such as set-off, or (3) to obtain provisional or ancillary remedies such as injunctive relief, attachment or the appointment of a receiver from a
court having jurisdiction before, during or after the pendency of any arbitration or referral. The institution and maintenance of an action for judicial relief or pursuit of provisional or ancillary remedies or exercise of self-help remedies shall
not constitute a waiver of the right of any party, including the plaintiff in such an action, to submit the Dispute to arbitration or, in the case of actions on a debt, to judicial resolution. 
 (e) Whenever an arbitration is required hereunder, the arbitrator shall be selected in accordance with the Commercial Arbitration Rules of the AAA. The
AAA shall designate a panel of 10 potential arbitrators knowledgeable in the subject matter of the Dispute. Each of the Lender and the Obligor shall designate, within 30 days of the receipt of the list of potential arbitrators, one of the potential
arbitrators to serve, and the two arbitrators so designated shall select a third arbitrator from the eight remaining potential arbitrators. The panel of three arbitrators shall determine the resolution of the Dispute. 
 [Remainder of page intentionally left blank] 
  

 17 

 IN WITNESS WHEREOF, the undersigned Pledgor has caused this Agreement dated the date first above
written to be executed by its duly authorized representative. 
  

			
	PLEDGOR:
	
	ALABAMA NATIONAL BANCORPORATION
		
	By:	 	 /s/ William E. Matthews, V

	Its:	 	 Executive Vice President and Chief Financial Officer

  

 18 

 EXHIBIT A 
 (Description of the Stock of the Corporation) 
 Stock Certificates: 
  

							
	 Certificate No.
	 	 No. of Shares
	 	 Issued To
	 	 Date

	 781
	 	20,000	 	Borrower	 	11/30/97

 Other Investment Property: 
 None. 
  

 A-1 

 EXHIBIT B 
 (Permitted Encumbrances) 
  

	1.	The Liens granted to the Lender under this Agreement. 

  

	2.	Other Liens of the Lender. 

  

 B-1 

 EXHIBIT C 
 (Locations) 
  

	1.	Address(es) of the Pledgor’s place(s) of business and chief executive office (if the Pledgor has more than one place of business): 

 1927 First Avenue North 
 Birmingham, AL 35203

  

	2.	State of incorporation or registration (if the Pledgor was created by such state filing): 

 Delaware 
  

 C-1Resignation and General Release Agreement

 Exhibit 10.1 
 RESIGNATION AND GENERAL RELEASE AGREEMENT 
 This RESIGNATION AND GENERAL RELEASE
AGREEMENT (the “Agreement”) is made and entered into by and between Catherine A. Ricks (“Ricks”) and Embrex, Inc. (“Embrex” or the “Company”). 
 Ricks resigned from her current positions as Corporate Officer and Vice President, Research & Development with Embrex effective March 10,
2006. Notwithstanding the foregoing, Ricks’ employment is not being terminated in connection with her resignation inasmuch as she will continue to be employed by the Company, albeit on a limited, part-time basis. Ricks is not entitled by any
written or oral agreement to any severance or separation benefits if she resigns her current position with the Company. Nevertheless, Ricks desires and Embrex is willing to provide the benefits described herein in exchange for Ricks’ entering
into this Agreement. 
 Ricks represents that she has carefully read the entire Agreement, understands its consequences, and voluntarily
enters into it. 
 NOW, THEREFORE, in consideration of the above and the mutual promises set forth below and other good and valuable
consideration, the receipt and sufficiency of which the parties acknowledge, Ricks and the Company agree as follows: 
 1.
RESIGNATION. Ricks has tendered, and Embrex has accepted, her resignation from her current positions as Corporate Officer and Vice President, Research & Development with Embrex to be effective on March 10, 2006 (the
“Resignation Date”). 
 2. RESIGNATION BENEFITS. In consideration of the release and other promises contained herein,
the adequacy of which Ricks hereby acknowledges, Embrex shall pay resignation benefits as follows: (i) on September 29, 2006, Embrex shall pay Ricks One Hundred Thousand Dollars ($100,000.00), less required withholdings; and (ii) on or before the
last day of each month, commencing 

 on October 31, 2006, and ending on July 31, 2007, Embrex shall pay Ricks Sixteen Thousand Six Hundred and
Sixty-Six Dollars and Sixty-Seven Cents ($16,666.67) per month, less required withholdings. As of and after the Resignation Date, Ricks shall not be entitled to participate in any employee benefit plans or programs, bonus plans, or incentive plans
not otherwise offered to other similarly situated part-time employees. Nothing in this Agreement shall be deemed to limit Ricks’ continuation coverage rights under COBRA or Ricks’ vested rights, if any, under the 401(k) plan or other
plans, and the terms of those plans shall govern. 
 3. RELEASE FROM EMPLOYMENT AGREEMENT OBLIGATIONS. Ricks hereby agrees to
release the Company from any and all obligations it may have under the following agreements previously entered into by and between the parties: (i) an Employment Agreement dated November 13, 1989; (ii) an Amendment to Employment Agreement dated May
16, 1996; and (iii) Change in Control Severance Agreement dated May 21, 1996. 
 4. RELEASE OF CLAIMS. RICKS, ON
BEHALF OF HERSELF, HER FAMILY MEMBERS, HEIRS, ASSIGNS, EXECUTORS AND OTHER REPRESENTATIVES, HEREBY RELEASES EMBREX, ITS PAST, PRESENT AND FUTURE SUBSIDIARIES AND AFFILIATES, AND ITS AND/OR THEIR PAST, PRESENT AND FUTURE PREDECESSORS, SUCCESSORS,
ASSIGNS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, REPRESENTATIVES, EMPLOYEE BENEFIT PLANS (TOGETHER WITH ALL PLAN ADMINISTRATORS, TRUSTEES, FIDUCIARIES AND INSURERS) (“RELEASEES”) FROM ALL KNOWN OR UNKNOWN CLAIMS FOR RELIEF,
INCLUDING, BUT NOT LIMITED TO, COMPENSATION, BONUSES, VACATION PAY OR PAID TIME OFF, COMPENSATORY DAMAGES, PUNITIVE DAMAGES, INJUNCTIVE RELIEF, ATTORNEYS’ FEES AND COSTS AND WAIVES ALL RIGHTS SHE MAY HAVE OR CLAIM TO HAVE RELATING TO HER
EMPLOYMENT WITH EMBREX, ITS SUBSIDIARIES AND AFFILIATES, OR 
  

 -2- 

 RESIGNATION THEREFROM, arising from events that have occurred up to the date she executes this Agreement including
but not limited to claims, whether previously known or unknown or later discovered, for: (i) discrimination, harassment or retaliation arising under federal, state or local laws prohibiting age, sex, national origin, race, religion,
disability, veteran status or other protected class discrimination or harassment or retaliation for protected activity; including; but not limited to claims under the Age Discrimination in Employment Act of 1967, as amended, (“ADEA”), the
Older Workers Benefit Protection Act of 1990 (“OWBPA”), Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act, and any similar federal, state, and local laws; (ii) for compensation and benefits
(including but not limited to claims under the Employee Retirement Income Security Act of 1974, as amended, (“ERISA”), Fair Labor Standards Act of 1934 (FLSA), as amended, and similar federal, state, and local laws; (iii) under federal,
state or local law of any nature whatsoever (including but not limited to constitutional, statutory, tort, express or implied contract or other common law); or (iv) attorneys’ fees. Provided, however, that this Section 4 shall not apply to any
claim for Workers’ Compensation or Unemployment Compensation benefits or to any claim arising out of the rights, duties and obligations set forth in this Agreement. For the purpose of implementing a full and complete release and discharge,
Ricks expressly acknowledges that this Agreement is intended to include in its effect, without limitation, all claims that she does not know or suspect to exist in her favor at the time of execution hereof, and that this Agreement
contemplated the extinguishment of any such claim or claims. 
 The Company releases Ricks from all known or unknown claims for
relief which it may have or claim to have relating to her employment with the Company arising from events that have occurred up to the date that this Agreement is executed; provided, however, that this release shall not apply to the Company’s
rights or Rick’s obligations under any previously executed confidentiality, proprietary information, secrecy or non-competition agreements or to any claim arising out of the rights, duties or obligations set forth in this Agreement. 

 

 -3- 

 5. COVENANT NOT TO SUE. Ricks will not sue Releasees on any matters relating to her
employment arising before the execution of this Agreement, including but not limited to claims under the ADEA, or join as a party with others who may sue Releasees on any such claims; provided, however, this Section 5 will not bar a challenge
under the OWBPA to the enforceability of the waiver and release of ADEA claims set forth in this Agreement, claims for workers’ compensation or unemployment benefits referenced in Section 4 above, or where otherwise prohibited by law. If
Ricks does not abide by this Section 5, then (i) she will return all monies received under this Agreement and indemnify Releasees for all expenses they incur in defending the action, and (ii) Releasees will be relieved of its
obligations hereunder. 
 6. VALUE OF BENEFITS. Ricks acknowledges that the benefits she will receive under this Agreement are
of significant value to her, which she would not be entitled to receive if she did not sign this Agreement. 
 7. REVIEW
PERIOD. This Agreement, including the Release language contained in Sections 4 and 5 herein, was hand delivered to Ricks on March 8, 2006 (the “Notification Date”). Ricks understands that Embrex desires that she have adequate
time and opportunity to review and understand the consequences of entering into this Agreement. Accordingly, Ricks understands that she has the right and Embrex encourages Ricks: (i) to consult with an attorney prior to executing this
Agreement; and (ii) that she has twenty-one (21) days from the Notification Date within which to consider signing it. The parties agree that any changes to the Agreement made after the Notification Date, whether material or immaterial, do
not restart the running of the 21-day period. In the event that Ricks does not return an executed copy of the Agreement to Embrex by March 30, 2006, she understands that she will not be entitled to the benefits described in Section 2
above, and this Agreement will be null and void. This Agreement may not be executed by Ricks prior to her Resignation Date. 
  

 -4- 

 8. REVOCATION. Ricks understands that she may revoke the Agreement during the seven
(7) day period immediately following its execution. The Agreement will not become effective or enforceable until the revocation period has expired. To revoke the Agreement, a written notice of revocation must be delivered to Embrex, Inc.
addressed to: Randall L. Marcuson, President & CEO, Embrex, Inc., 1040 Swabia Court, Durham, NC 27703. 
 9. DISCLAIMER OF
LIABILITY. Ricks acknowledges that this Agreement is intended to avoid all litigation relating to Ricks’ employment with Embrex and the resignation described above; therefore, it is not to be considered as Embrex’s admission of any
liability — liability that Embrex denies. 
 10. COMPANY INFORMATION AND PROPERTY. Ricks shall not at any time after the
Resignation Date disclose, use or aid third parties in obtaining or using any confidential or proprietary Embrex information. Confidential or proprietary information is information relating to Embrex or any aspect of its business that is not
generally available to the public, Embrex’s competitors, or other third parties, or ascertainable through common sense or general business or technical knowledge. Nothing in this Agreement shall relieve Ricks from any obligations under any
previously executed confidentiality, proprietary information, secrecy or non-competition agreements. Ricks agrees and acknowledges that any previously executed confidentiality, proprietary information, secrecy or non-competition agreements are in
full force and effect and will continue to be in full force and effect after the Resignation Date, she represents that she has remained in compliance with the provisions of these agreements, and she agrees that she shall continue to comply with such
provisions in all respects after the Resignation Date. 
 All records, files or other materials maintained by or under the control, custody
or possession of Embrex or its agents in their capacity as such shall be and remain Embrex’s property. Upon Embrex’s request, Ricks shall: (i) return all Embrex’s property (including, but not limited to, computer hardware and
software, records, files and other documents in whatever form they exist, whether electronic, hard copy or otherwise and all copies, notes or summaries thereof, company manuals, 
  

 -5- 

 credit cards and keys), which she received in connection with her employment; (ii) bring all such records, files,
and other materials up to date before returning them; and (iii) fully cooperate with Embrex in winding up her work and transferring that work to those individuals designated by Embrex. 
 11. STIPULATION. Ricks acknowledges, agrees and hereby stipulates to the following facts: (i) during her employment with the Company,
Ricks was allowed to take all leave and afforded all other rights to which she was entitled under the Family and Medical Leave Act (FMLA); and (ii) the Company has not in any way interfered with, restrained or denied Ricks’ exercise of (or
attempt to exercise) any FMLA rights, nor terminated or otherwise discriminated against her for exercising (or attempting to exercise) any such rights. 
 12. NON-DISPARAGEMENT AND NON-INTERFERENCE. During the Restricted Period, as defined in Section 14: 
 (a) Ricks agrees not to engage in the following activities: 
 (i) on Ricks’ own or another’s
behalf, whether as an officer, director, stockholder, partner, associate, owner, employee, consultant, or otherwise, except with prior written approval by the Company, directly or indirectly, employ, offer employment to, or otherwise solicit for
employment any employee or other person who had been employed by the Company at any time during the last year of Ricks’ employment with the Company or during the Restricted Period, as defined in Section 14; or 
 (ii) directly or indirectly take action, including making disparaging comments about the Company or any of its employees, which is detrimental to the
Company’s goodwill, name, business relations, prospects, or operations. This provision is not intended to limit Ricks’ rights and obligations to provide truthful, factual testimony in judicial or regulatory proceedings or to governmental
officials in connection with a governmental agency investigation. 
 (b) The Company, likewise, agrees not to make disparaging comments about
Ricks which are detrimental to her. This provision is not intended to limit the Company’s rights and obligations to provide truthful, factual testimony in judicial or regulatory proceedings or to governmental officials in connection with a
governmental agency investigation. 
  

 -6- 

 13. NON-COMPETITION. During the Restricted Period, as defined in Section 14, Ricks
will not engage in the following activities unless previously agreed to by the Company in writing: 
 (a) on her own or another’s behalf,
whether as an officer, director, stockholder, partner, associate, owner, employee, consultant, or otherwise, within the geographical areas set forth below, solicit or do business which is the same, similar to, or otherwise in competition with the in
ovo delivery business engaged in by the Company from or with persons or entities who are customers of the Company, who were customers of the Company at any time during the last year of her employment with the Company or to whom the Company had made
proposals for such business at any time during the last year of her employment with the Company; or 
 (b) within the geographical area set
forth below, be employed (or otherwise engaged) in any capacity connected with competitive business activities by any person or entity that engages in the same, similar, or otherwise competitive business as the Company’s in ovo delivery
business. 
 The restrictions set for this Section 13 apply to the following geographical areas: 
 (i) any city, metropolitan area, county (and similar political subdivision in foreign countries) in which the Company is located or does business, or
during Ricks’ employment, did business, or in which Ricks performed substantial services or had substantial responsibility while employed by the Company; and 
 (ii) a 60-mile radius of any Company location where Ricks maintained an office during her employment with the Company. 
 14. RESTRICTED PERIOD. For purposes of this Agreement, “Restricted Period” shall mean the following period commencing on the Resignation Date: 
 (a) twenty-four (24) months: or 
  

 -7- 

 (b) if a court of competent jurisdiction should find twenty-four (24) months to be unreasonable,
then eighteen (18) months; or 
 (c) if a court of competent jurisdiction should find eighteen (18) months to be unreasonable, then
twelve (12) months; or 
 (d) if a court of competent jurisdiction should find twelve (12) months to be unreasonable, then six
(6) months. 
 The alternatives provided in this Section 14 reflect the desire of the parties to retain this Section 14 even
if a court should determine the twenty-four (24) month period to be unenforceable, and are not meant to imply that either or both of the parties believe that the Restricted Period as set forth in Section 14(a) is unreasonable or
unenforceable. 
 Notwithstanding the foregoing, Employee’s ownership, directly or indirectly, of not more than five percent
(5%) of the issued and outstanding stock of a corporation the shares of which are regularly traded on a national securities exchange or in the over-the-counter market shall not violate Section 14. 
 15. BREACH; WAIVER OF BREACH. Ricks acknowledges and agrees that her failure to abide by the obligations set forth in Sections 10, 12, and
13 would constitute a material breach of this Agreement. Ricks’ or Embrex’s waiver of any breach of a provision of this Agreement shall not waive any subsequent breach by the other party. 
 16. ENTIRE AGREEMENT. Except as expressly provided in this Agreement, this Agreement supersedes all other understandings and agreements,
oral or written, between the parties and constitutes the sole agreement between the parties with respect to its subject matter. Each party acknowledges that no representations, inducements, promises or agreements, oral or written, have been made by
any party or by anyone acting on behalf of any party, which are not embodied in this Agreement and no agreement, statement or promise not contained in the Agreement shall be valid or binding on the parties unless such change or modification is in
writing and is signed by the parties. 
  

 -8- 

 17. SEVERABILITY. If a court of competent jurisdiction holds that any provision or sub-part
thereof contained in the Agreement is invalid, illegal or unenforceable, that invalidity, illegality or unenforceability shall not affect any other provision in the Agreement. 
 18. GOVERNING LAW. This Agreement will be governed by North Carolina law. 
 19. PARTIES BOUND. The Agreement shall apply to, be binding upon and inure to the benefit of the parties’ successors, assigns, heirs
and other representatives. 
 [THE REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY.] 
  

 -9- 

 IN WITNESS WHEREOF, WE HAVE SIGNED THIS AGREEMENT ON THE DAY AND YEAR WRITTEN BELOW. 

 

			
	 /s/ Catherine A. Ricks

	Catherine A. Ricks
	
	 March 23, 2006

	Date
	
	EMBREX, INC.
		
	By:	 	 /s/ Randall L. Marcuson

	Its:	 	President & Chief Executive Officer

  

 -10-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}]]