Document:

Form of Change of Control Agreement

 EXHIBIT 10.4 
  
 Change of Control 
 Agreement 
  
 Between 
 HomeBanc Corp. 
 and 

[NAME] 
  
 For purposes of this Agreement, a “Change of Control” shall mean the occurrence of any of the following events: 
  

	 	(a)	individuals who, on the Effective Date, constitute the Board of Directors of the Company (the “Incumbent Directors”) cease for any reason to constitute at least a majority
of such Board, provided that any person becoming a director after the effective date and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent
Director; provided, however, that no individual initially elected or nominated as a Director of the company as a result of an actual or threatened election contest with respect to the election or removal of directors (“Election Contest”)
or other actual or threatened solicitation of proxies or consents by or on behalf of any “person” (such term for the purposes of this section (a) being defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange
Act”) and as used in Section 13(d)(3) and 14(d)(2) of the Exchange Act) including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director, or 

 

	 	(b)	any person who becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) directly or indirectly of either (i) 35% or more of the then-outstanding
shares of common stock of the Company (“Company Common Stock”) or (ii) securities of the Company representing 35% or more of the combined voting power of the Company’s then-outstanding securities eligible to vote for the election of
directors (the “Company Voting Securities”); provided, however, that for the purposes of this paragraph (b), the following acquisitions of Company Common Stock or Company Voting Securities shall not constitute a change of control: (A) an
acquisition directly from the Company, (B) an acquisition by the Company or a subsidiary of the Company, (C) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary of the Company or
(D) an acquisition pursuant to a Non-Qualifying Transaction (as defined in paragraph (c) below; or 

  

	 	(c)	the consummation of a recapitalization, reorganization, merger, consolidation, or statutory share exchange under a similar form of transaction involving the Company or a subsidiary
of the Company (a “Reorganization”) or the sale or other disposition of all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another entity (an “Acquisition”), unless
immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the outstanding Company Common Stock and outstanding Company Voting
Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or indirectly, more than 50% of, respectively, the then-outstanding shares of common stock and the combined voting power of the then-outstanding
voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from or surviving such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets or stock either directly or through one or more subsidiary entities, the “Surviving Entity”) in substantially the same proportions as their ownership
immediately prior to such Reorganization, Sale, or Acquisition, of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no person (other than (x) the Company or any subsidiary of the Company
or (y) the Surviving Entity or its ultimate parent entity, or (z) any employee benefit plan ( or related trust) sponsored or maintained by any of the foregoing) is the beneficial owner, directly or indirectly, of 35% or more of the total common
stock or 35% or more of the total voting power of the outstanding voting securities eligible to elect the board of directors of the Surviving Entity and (C) at least a majority of the members of the board of directors of the Surviving Entity were
Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Reorganization, Sale or Acquisition (any Reorganization, Sale, or Acquisition which satisfies all of the criteria specified in
(A), (B), or (C) above shall be deemed to be a “Non-Qualifying Transaction”); or 

	 	(d)	approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 

  
 If employment is terminated by the Company and if it can reasonably be shown that termination was ( i ) at the direction or request of a
third party that had taken steps reasonably calculated to effect a Change in Control after such termination, or ( ii ) as otherwise defined does, in fact, occur, then the Company will provide the following as if the Change in Control had occurred on
the date immediately preceding the Date of Termination: 
  
 (a) the sum of the
following amounts, to the extent not previously paid (the “Accrued Obligations”): (1) the base salary through the date of termination, (2) a pro-rata bonus for the year in which the date of termination occurs, computed as the product (x)
of the target bonus for such year and a fraction (y), the numerator of which is the number of days in the current fiscal year through the date of termination, and the denominator of which is 365, (3) any accrued pay in lieu of unused vacation, and
(4) unless a later payout date is required under the terms of any deferral plan or agreement, an vested compensation previously deferred (together with any amount equivalent to accrued interest or earnings thereon; and 
  
 (b) a severance payment as determined pursuant to clause (1) or (2) below, as applicable:

  
 (1) if the date of termination occurs before, or more than two years after,
the occurrence of a change of control, the severance payment shall be the product of 12 ( the regular severance factor) times one twelfth o the sum of (a) the base salary in effect as of the date of termination and (b) the greater of the average of
the annual bonuses earned for the two fiscal years in which annual bonuses were paid immediately preceding the year in which the date of termination occurs or the target bonus for the year in which the date of termination occurs; or 
  
 (2) if the date of termination occurs within two years after the occurrence of a change of
control, the severance payment shall be the product of 18 (the change of control severance factor) times one-twelfth of the sum of the base salary in effect as of the date of termination, and the greater of the average of the annual bonuses earned
for the two fiscal years in which annual bonuses were paid immediately preceding the year in which the date of termination occurs, or the target bonus for the year in which the date of termination occurs; and 
  
 (3) the Company shall continue to provide, for a number of months equal to the Regular
Severance Factor or the Change of Control Severance Factor (as determined above, as applicable) after the date of termination (the “Welfare Benefits Continuation Period”) or such longer period as may be provided by the terms of the
appropriate plan, program, practice or policy, any group health benefits to which you and/or your eligible dependents would otherwise be entitled under COBRA, or benefits substantially equivalent to those group benefits which would have been
provided to them in accordance with the Welfare Plans provided by the Company if employment had not been terminated, provided, however, that if employment with another company commences (including self-employment) and group benefits are available
under another employer-provided plan, the Company’s obligation to provide benefits shall cease, except as otherwise provided by law and provided further that the Welfare Benefit Continuation Period shall run concurrently with any period for
which you are eligible to elect continuation coverage under COBRA; and 
  
 (4) all
grants of stock options and other equity awards granted by the Company and held by you as of the date of termination will become immediately vested and exercisable as of the date of termination and to the extent necessary, this Agreement is hereby
deemed an amendment of any such outstanding stock option or other equity award; and 
  
 (5) the Company shall provide you with reasonable outplacement services for a period of one year; provided, that the Company shall be obligated to pay not more than 25% of your annual base salary immediately in effect prior to the date of
termination for such outplacement services and that the period of services may be shortened to such extent; and 
  
 (6) to the extent not theretofore paid or provided, the Company shall timely pay or provide any other amounts or benefits required to be paid or provided or which you are
eligible to receive under any plan, program, policy or practice of the Company to the extent provided to Peers prior to the date of termination (“Other Benefits”). 

 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Change of Control Agreement as of
                , 200    . 
  

			
	HOMEBANC CORP.
		
	 By:
	 	  

	 Title:
	 	  

	
	 Associate Signature:Form of Stock Appreciation Right Certificate

 EXHIBIT 10.9 
  
 STOCK APPRECIATION RIGHTS CERTIFICATE 
  
 Non-transferable 
  
 GRANT TO 
  
 _______________________ 
 (“Grantee”) 
  
 by HomeBanc Corp. (the “Company”) of 
 Stock Appreciation Rights with respect to 
  
 [            ] 
  
 shares of its common stock, $0.01 par value (the “SARs”) 
  
 having a base value of $      per share (the
“Base Value”) 
  
 pursuant to and subject to the provisions of the
HomeBanc Corp. Amended and Restated 2004 Long-Term Incentive Plan (the “Plan”) and to the terms and conditions set forth on page 2 hereof. By accepting the SARs, Grantee shall be deemed to have agreed to the terms and conditions set forth
in this Certificate and the Plan. 
  
 Unless vesting is accelerated in accordance
with the Plan or in the discretion of the Committee, the SARs shall vest (become exercisable) in accordance with the following schedule: 
  

			
	 Continued Employment
 after Grant Date

	 	 Percent of SAR Shares Vested

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

  
 IN WITNESS WHEREOF, HomeBanc Corp. has
caused this Certificate to be executed as of the Grant Date, as indicated below. 
  

			
	 HOMEBANC CORP.

		
	 By:
	 	  

	 Its:
	 	 Authorized Officer

	 Grant Date:
                    , 200    

  

 TERMS AND CONDITIONS 
  
 1. Grant of SARs. HomeBanc Corp. (the “Company”) hereby grants to the Grantee named on page 1 hereof (“Grantee”), under the HomeBanc Corp.
Amended and Restated 2004 Long-Term Incentive Plan (the “Plan”) and on the terms and on conditions set forth in this award certificate (this “Certificate”), stock appreciation rights with respect to the number of shares of Stock
indicated on page 1 hereof at the Base Value per share set forth on page 1 hereof (the “SARs”). Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan. 
  
 2. Base Value and Benefit. The Base Value of each SAR is equal to the Fair Market
Value of a share of Stock on the Grant Date. Each SAR entitles Grantee to receive from the Company upon the exercise of the SAR an amount, payable in shares of Stock, equal to the excess, if any, of (a) the Fair Market Value of one share of Stock on
the date of exercise, over (b) the Base Value per share. 
  
 3. Vesting of
SARs. The SARs shall vest (become exercisable) in accordance with the schedule shown on page 1 of this Certificate. Notwithstanding the vesting schedule, (i) if Grantee’s employment terminates by reason of his or her death, Disability or
Retirement at any time, or (ii) if grantee’s employment is terminated by the Company without Cause within two years following a Change of Control, the SARs shall become fully vested and exercisable as of such date of termination. 
  
 4. Term of SARs and Limitations on Right to Exercise. The term of the SARs is a period
of ten years, expiring at 5:00 p.m., Eastern Time, on the tenth anniversary of the Grant Date (the “Expiration Date”). To the extent not previously exercised, the SARs will lapse prior to the Expiration Date upon the earliest to occur of
the following circumstances: (a) three months after the termination of the Grantee’s employment with the Company for any reason other than by reason of the Grantee’s death, Disability or Retirement; (b) twelve months after the date of the
termination of the Grantee’s employment with the Company by reason of Disability or Retirement; (c) twelve months after the date of the Grantee’s death, if the Grantee dies while employed with the Company, or during the 3-month period
described in subsection (a) above or during the twelve-month period described in subsection (b) above and before the SARs otherwise lapse. Upon the Grantee’s death, the SARs may be exercised by the Grantee’s beneficiary designated pursuant
to the Plan. 
  
 The Committee may, prior to the lapse of the SARs under the
circumstances described in paragraphs (a), (b), or (c) above, extend the time to exercise the SARs. If the Grantee or his or her beneficiary exercises a SAR after termination of employment, the SARs may be exercised only with respect to the shares
that were otherwise vested as of such termination. 
  
 5. Dividend
Equivalents. If and when dividends or other distributions are paid with respect to the Stock while the SARs are outstanding, the dollar amount or fair market value of such dividends or distributions with respect to the number of shares of Stock
then underlying the SARs shall be converted into Restricted Stock Units (“RSUs”) in Grantee’s name, based on the Fair Market Value of the Stock as of the date such dividends or distributions were payable, and such RSUs shall be
subject to the same restrictions as apply to the SARs with respect to which they relate. Upon exercise of the SARs, the value of the accumulated RSUs (based on the Fair Market Value of the price of Stock at the time of exercise) will be added to the
amount payable upon exercise of the SAR, and the total value will be converted to shares of Common Stock to be delivered to the Grantee. 
  
 6. Exercise of SAR. The value due upon exercise of the SARs is calculated as follows: (a) the number of SARs being exercised, times the excess, if any, of (i) the
Fair Market Value of one share of Stock on the date of exercise, over (ii) the Base Value of the SAR, plus (b) the value of the accumulated RSUs (based on the Fair Market Value of the Stock at the time of exercise), The SARs shall not be exercisable
if the value derived from the above formula is zero or less. Provided such value is more than zero, the SARs shall be exercised by written notice directed to the Secretary of the Company or his or her designee at the address and in the form
specified by the Secretary from time to time. If the person exercising a SAR is not Grantee, such person shall also deliver with the notice of exercise appropriate proof of his or her right to exercise the SAR. 
  
 7. Limitation of Rights. The SARs do not confer to Grantee or Grantee’s
beneficiary any rights of a shareholder of the Company unless and until shares of Stock are in fact issued to such person in connection with the exercise of the SARs. Nothing in this Certificate shall interfere with or limit in any way the right of
the Company or any affiliate to terminate Grantee’s employment at any time, nor confer upon Grantee any right to continue in the employment of the Company or any affiliate. 

 8. Withholding. The Company or any employer affiliate has the authority and the right to deduct or withhold, or
require Grantee to remit to the employer, an amount sufficient to satisfy federal, state, and local taxes (including Grantee’s FICA obligation) required by law to be withheld with respect to any taxable event arising as a result of the exercise
of the SARs. The withholding requirement may be satisfied, in whole or in part, at the election of the Secretary, by withholding from the SAR shares of Stock having a Fair Market Value on the date of withholding equal to the minimum amount (and not
any greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Secretary establishes. 
  
 9. Plan Controls. The terms contained in the Plan are incorporated into and made a part of this Certificate and this Certificate shall be governed by and construed
in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Certificate, the provisions of the Plan shall be controlling and determinative. 
  
 10. Severability. If any one or more of the provisions contained in this Certificate
is deemed invalid, illegal or unenforceable, the other provisions of this Certificate will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included. 
  
 11. Notice. Notices and communications under this Certificate must be in writing and
either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to: HomeBanc Corp., 2002 Summit Boulevard, Suite 100, Atlanta, Georgia 30319;
Attn: Secretary, or any other address designated by the Company in a written notice to Grantee. Notices to Grantee will be directed to the address of Grantee then currently on file with the Company, or at any other address given by Grantee in a
written notice to the Company.

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