Document:

The 8/04 Colonial Bank Senior Credit Note

 Exhibit 10.13 
  
 (The “8/04 Colonial Bank Senior Credit Note”) 
  

					
	$25,000,000	 	Houston, Texas	 	August     , 2004

  
 FOR VALUE RECEIVED,
HOMEBANC CORP., a Georgia corporation, and its wholly-owned subsidiary, HOMEBANC MORTGAGE CORPORATION, a Delaware corporation (“Makers” or the “Companies”) jointly and severally to pay to the order of COLONIAL BANK, N.A.
(“Payee”), a national banking association, at the main Houston branch of JPMorgan Chase Bank, 712 Main Street, Houston, Harris County, Texas 77002, or at such other place as the Agent may hereafter designate in writing, in
immediately available funds and in lawful money of the United States of America, the principal sum of Twenty-five Million Dollars ($25,000,000) (or the unpaid balance of all principal advanced against this note, if that amount is less), together
with interest on the unpaid principal balance of this note from time to time outstanding until maturity at the applicable rate(s) provided for in the Credit Agreement (or at such lesser rate, if any, as the holder of this note — the
“Holder”, whether or not Payee is such holder — may in its sole discretion from time to time elect to be applicable for any day or days), and interest on all past due amounts, both principal and accrued interest, at the
Past Due Rate; provided that for the full term of this note the interest rate produced by the aggregate of all sums paid or agreed to be paid to Holder for the use, forbearance or detention of the debt evidenced hereby shall not exceed the
Ceiling Rate. 
  
 1. Definitions. In addition to the
definitions given above, the definitions given in the 6/04 Amended and Restated Senior Secured Credit Agreement dated June 7, 2004, as it may be supplemented, amended or restated from time to time (the “Credit Agreement”)
among (a) Maker, (b) JPMorgan Chase Bank (for itself as a Lender and as Agent for the other Lenders) and (c) the other Lender(s) party thereto, for capitalized terms that are used in this note shall apply here as well as there. 
  
 2. Rates Change Automatically and Without Notice. Without notice to
Maker or any other Person and to the full extent allowed by applicable law from time to time in effect, the Stated Rate, the Past Due Rate and the Ceiling Rate shall each automatically fluctuate upward and downward as and in the amount by which the
interest rate applicable to this note as provided for in the Credit Agreement, the Past Due Rate as defined in the Credit Agreement and such maximum nonusurious rate of interest permitted by applicable law, respectively, fluctuate. 
  
 3. Calculation of Interest. Interest on the amount of each advance
against this note shall be computed on the amount of that advance and from the date it is made. All interest rate determinations and calculations by the Holder, absent manifest error, shall be conclusive and binding. 
  
 4. Excess Interest Will be Refunded or Credited. If, for any reason
whatever, the interest paid or received on this note during its full term produces a rate which exceeds the Ceiling Rate, Holder shall refund to the payor or, at Holder’s option, credit against the principal of Senior Credit Note such portion
of said interest as shall be necessary to cause the interest paid on this note to produce a rate equal to the Ceiling Rate. 
  
 INITIALED FOR 
 IDENTIFICATION: /s/             

 5. Interest Will be Spread. To the extent (if any) necessary to avoid violation of applicable
usury laws (or to minimize the extent of the violation if complete avoidance is impossible for any reason, it being the intent and purpose of Maker and all Holders to comply strictly with all applicable usury and other laws), all sums paid or agreed
to be paid to Holder for the use, forbearance or detention of the indebtedness evidenced hereby shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread in equal parts throughout the full term of this note, so
that the interest rate is uniform throughout the full term of this note. 
  
 6. Payment Schedule. Interest on and principal of this note shall be due and payable as provided in 6.2(c)(2) and 6.10 of the Current Credit Agreement. 
  
 7. Prepayment. Maker may prepay this note in accordance with and
subject to the provisions of Sections 6.9 and 6.2(b)(7)(ix) of the Current Credit Agreement. Prepayments shall be applied first to accrued interest, the balance to principal. 
  
 8. The 6/04 Credit Agreement, this Note and its Security. This note is
one of the Senior Credit Notes, as such term is defined in the Credit Agreement, is issued pursuant to the Credit Agreement (to which reference is made for all purposes) and may be referred to as the “8/04 Colonial Bank Credit
Note”, and as it may hereafter be renewed, extended, rearranged, increased, decreased, modified or replaced in accordance with the Credit Agreement may be referred to as the “Current Colonial Bank Senior Credit
Note”. Holder is entitled to the benefits of and security provided for in the Credit Agreement. Such security includes, among other security, the security interests granted by Section 7.1 of the Current Credit Agreement.

  
 9. Revolving Credit. Upon and subject to the terms and
conditions of the Credit Agreement, Maker may borrow, repay and reborrow against this note under the circumstances, in the manner and for the purposes specified in the Credit Agreement, but for no other purposes. Advances against this note by Payee
or other Holder shall be governed by the terms of the Credit Agreement. The unpaid principal balance of this note at any time shall be the total of all principal lent or advanced against this note less the sum of all principal payments and permitted
prepayments made on this note by or for the account of Maker. Absent manifest error, Holder’s computer records shall on any day conclusively evidence the unpaid balance of this note and its advances and payments history posted up to that day.
All loans and advances and all payments and permitted prepayments made hereon may be (but are not required to be) endorsed by or on behalf of Holder on the schedule which is attached as Annex I hereto (which is hereby made a part hereof for
all purposes) or otherwise recorded in Holder’s computer or manual records; provided, that any failure to make notation of (a) any principal advance or accrual of interest shall not cancel, limit or otherwise affect Maker’s
obligations or any Holder’s rights with respect to that advance or accrual, or (b) any payment or permitted prepayment of principal or interest shall not cancel, limit or otherwise affect Maker’s entitlement to credit for that payment as
of the 
  
 INITIALED FOR 
 IDENTIFICATION: /s/             
  

 Page 2 of 4 Pages 

 date of its receipt by Holder. Maker and Payee expressly agree, pursuant to Chapter 346 (“Chapter
346”) of the Texas Finance Code, that Chapter 346 (which relates to open-end line of credit revolving loan accounts) shall not apply to this note or to any loan evidenced by this note, and that neither this note nor any such loan shall
be governed by Chapter 346 or subject to its provisions in any manner whatsoever. 
  
 10. Defaults and Remedies. Any Event of Default under the Credit Agreement or any other Facilities Papers shall constitute an Event of Default under this note and all other Facilities Papers and shall have the
consequences provided for in the Credit Agreement which may include acceleration of the indebtedness evidenced hereby. Subject to the terms of the Credit Agreement, Holder or the Agent may waive any default without waiving any other prior or
subsequent default. Holder or the Agent may remedy any default without waiving the default remedied. Holder’s or the Agent’s failure to exercise any right, power or remedy upon any default shall not be construed as a waiver of such default
or as a waiver of the right to exercise any such right, power or remedy at a later date. No single or partial exercise by Holder or the Agent of any right, power or remedy hereunder shall exhaust it or shall preclude any other or future exercise of
it, and every such right, power or remedy under this note may be exercised at any time and from time to time. No modification or waiver of any provision of this note nor consent to any departure by Maker from its terms shall be effective unless it
is in writing and signed by Holder (or, if authorized for that purpose by the Credit Agreement, the Agent), and then such waiver or consent shall be effective only in the specific instance given, for the purposes for which given and to the extent
therein specified. 
  
 11. Legal Costs. If any Holder or
the Agent retains an attorney in connection with any such default or to collect, enforce or defend this note or any papers intended to secure or guarantee it in any lawsuit or in any probate, reorganization, bankruptcy or other proceeding, or if
Maker or anyone claiming by, through or under Maker sues any Holder in connection with this note or any such papers and does not prevail, then Maker agrees to pay to each such Holder and the Agent, respectively, in addition to principal and
interest, all reasonable costs and expenses incurred by such Holder or the Agent in trying to collect this note or in any such suit or proceeding, including reasonable attorneys’ fees. 
  
 12. Waivers. Maker and any and all co-makers, endorsers (other than
the Holder or the Payee), guarantors and sureties severally waive notice (including, but not limited to, notice of intent to accelerate and notice of acceleration, notice of protest and notice of dishonor), demand, presentment for payment, protest,
diligence in collecting and the filing of suit for the purpose of fixing liability and consent that the time of payment hereof may be extended and re-extended from time to time without notice to any of them. Each such Person agrees that his, her or
its liability on or with respect to this note shall not be affected by any release of or change in any guaranty or security at any time existing or by any failure to perfect or maintain perfection of any lien against or security interest in any such
security or the partial or complete unenforceability of any guaranty or other surety obligation, in each case in whole or in part, with or without notice and before or after maturity. 
  
 INITIALED FOR 
 IDENTIFICATION: /s/             
  

 Page 3 of 4 Pages 

 13. Not Purpose Credit. None of the proceeds of this note shall ever be used, directly or
indirectly, for the purpose of purchasing or carrying any Margin Stock or for the purpose of reducing or retiring any debt which was originally incurred to purchase or carry any Margin Stock or to extend credit to others for the purpose of
purchasing or carrying any Margin Stock or which would constitute this transaction a “purpose credit” within the meaning of Regulation U, as now or hereafter in effect. 
  
 14. Governing Law, Jurisdiction and Venue. This note shall be governed by and construed in accordance with the laws
of the State of Texas and the United States of America from time to time in effect. Maker and all endorsers (other than the Holder or the Payee), guarantors and sureties each hereby irrevocably submits to the nonexclusive jurisdiction of the United
States District Court for the Southern District of Texas and the state district courts of Harris County, Texas, for purposes of all legal proceedings arising out of or relating to this note, the debt evidenced hereby or any loan agreement, security
agreement, guaranty or other papers or agreements relating to this note. To the fullest extent permitted by law, Maker and all endorsers (other than the Holder or the Payee), guarantors and sureties each irrevocably waives any objection which he,
she or it may now or hereafter have to the laying of venue for any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum. Harris County, Texas shall be a
proper place of venue for suit on or in respect of this note. Nothing herein shall affect the right of Maker, the Payee or any Holder at any time to initiate any suit in the United States District Court for the Southern District of Texas, Houston
Division, or to remove any pending suit to that Court. 
  
 15.
General Purpose of Loan. Maker warrants and represents to Payee, all other Holders and the Agent that all loans evidenced by this note are and will be for business, commercial, investment or other similar purpose and not primarily for
personal, family, household or agricultural use, as such terms are used in the Texas Finance Code. 
  

			
	 HOMEBANC CORP., as comaker

		
	 By:
	 	 /s/ Debra F. Watkins

	 Name:
	 	 Debra F. Watkins

	 Title:
	 	 Executive Vice President

	
	 HOMEBANC MORTGAGE CORPORATION, as comaker

		
	 By:
	 	 /s/ Debra F. Watkins

	 Name:
	 	 Debra F. Watkins

	 Title:
	 	 Executive Vice President

  

 Page 4 of 4 Pages 

 ANNEX 1 
 to $25,000,000 
 HomeBanc Mortgage Corporation 
 8/04 Colonial Bank Senior Credit Note 
  
 LOANS AND PAYMENTS OF PRINCIPAL AND INTEREST 
  

											
	 Date of Payment or Advance

	  	Payment Applied on
(or advance vs.)
Principal

	  	Payment
Applied on
Interest

	  	Principal
Balance

	  	Interest Paid
to

	  	Name of Person
Making NotationAMENDED AND RESTATED EMPLOYEE DEFERRED COMPENSATION: BILLY T. WOODARD

 Exhibit 10.1 
  
 STATE OF NORTH CAROLINA 
  
 COUNTY OF WAKE 
  
 AMENDED AND RESTATED EMPLOYEE 
 DEFERRED COMPENSATION, CONSULTATION,

 POST-RETIREMENT NON-COMPETITION 
 AND DEATH BENEFIT AGREEMENT 
  
 THIS
AGREEMENT is made, entered into and effective as of the 24th day of May, 2004, by and between THE FIDELITY
BANK, a North Carolina banking corporation with its principal office in Fuquay-Varina, North Carolina (“Employer”) and BILLY T. WOODARD (“Employee”); 
  
 W I T N E S S E T H 
  
 WHEREAS, Employee is an employee of Employer who has provided
guidance, leadership and direction in the growth, management and development of Employer and has learned trade secrets, confidential procedures and information, and technical and sensitive plans of Employer; and, 
  
 WHEREAS, Employer desires to limit Employee’s availability to
other employers or entities which are in competition with Employer following Employee’s retirement from employment with Employer; and, 
  
 WHEREAS, Employer has offered to Employee a non-competition arrangement and a deferred compensation/consultation arrangement together with a death
benefit arrangement for Employee’s designated beneficiary or estate, as applicable, and the parties hereto have reached an agreement concerning those arrangements and other matters contained herein and desire to set forth the terms and
conditions thereof. 
  
 NOW, THEREFORE, for and in
consideration of the mutual promises and undertakings herein set forth, Employee and Employer hereby agree as follows: 
  
 1. Deferred Compensation/Consultation Payments. In the event Employee retires from employment on Employee’s “Retirement Date”
(as defined below), Employer shall pay to Employee the sum of Two Thousand One Hundred Eighty-Four and 37/100 Dollars ($2,184.37) per month, beginning not later than two months after Employee’s Retirement Date, for a period of ten years
following Employee’s Retirement Date or until his death, whichever first occurs (“Deferred Compensation/Consultation Payments”). Such monthly payments shall be paid for and in consideration of Employee’s support, sponsorship,
advisory and other services provided to Employer (“Consultation Services”); such sum to be payable to Employee whether or not Employee’s Consultation Services have been utilized by Employer. Except as set forth below, Deferred
Compensation/Consultation Payments hereunder shall be payable each month without deductions and Employee agrees to be solely responsible for the 

 payment of all income and other taxes out of said funds and all Social Security, self-employment and any other taxes or
assessments, if any applicable on said compensation. 
  
 For and
in consideration of said monthly Deferred Compensation/Consultation Payments to Employee, Employee will provide Consultation Services as an independent contractor to Employer, as and when Employer may request, which services may be provided with
respect to all phases of Employer’s business and particularly those phases in which Employee has particular expertise and knowledge. Employee’s services shall be limited to those of an independent consultant, shall not be on a day-to-day
regularly scheduled operational basis and shall be provided only when Employee is reasonably available and willing. Employer shall make available to Employee such office space and equipment as are reasonably necessary for Employee to carry out the
obligations under this Agreement and shall reimburse Employee for any extraordinary expenses incurred in carrying out the obligations hereunder. 
  
 Effective as of Employee’s Retirement Date, Employee and Employer agree that Employee shall be, under the terms of this Agreement, an independent
contractor, and Employee agrees that his rights and privileges and his obligations are as provided in this Agreement as to matters covered herein. 
  
 Notwithstanding the foregoing, if Employer determines that the Deferred Compensation/Consulting Payments will constitute deferred compensation rather than
payments for Consultation Services, such payments shall be subject to any and all applicable withholding, Social Security, employment, income and other taxes or assessments, if any, which apply to deferred compensation under the applicable tax law.

  
 If Employee should die during the ten-year period during which
Deferred Compensation/Consultation Payments are being made under this Paragraph 1, then those payments shall terminate and future payments, if any, shall be made to Employee’s designated beneficiary(ies) or Employee’s estate in accordance
with the provisions of Paragraph 3 of this Agreement. 
  
 As used
in this Agreement, the term “Retirement Date” shall mean the last day of the calendar month in which Employee attains the age of seventy-three and one-half (73 1/2), or such other date prior or subsequent thereto as Employer and Employee shall agree in writing to treat as the “Retirement Date” for purposes of this Agreement.
Employer and Employee hereby acknowledge that compulsory retirement is not enforceable except as provided by law. Employer and Employee further agree that no provision herein shall be construed as requiring Employee’s retirement except as may
now or hereafter be permitted by law. 
  
 2.
Non-competition Payments. In the event Employee retires from his employment with Employer on the Retirement Date, Employer shall pay to Employee the sum of Six Thousand Five Hundred Fifty-Three and 13/100 Dollars ($6,553.13) per month,
beginning 
  

 2 

 not later than two months after Employee’s Retirement Date, for a period of ten years following Employee’s
Retirement Date or until his death, whichever first occurs. Such monthly payments shall be paid for and in consideration of Employee’s agreement in this Paragraph 2 below (Employee’s “Covenant Not To Compete”). Payments hereunder
(“Non-competition Payments”) shall be payable each month without deductions and Employee agrees to be solely responsible for the payment of all income or other taxes or assessments, if any, applicable on those payments. 
  
 For and in consideration of monthly Non-competition Payments to Employee,
Employee agrees not to become an officer or employee of, provide any consultation to, nor participate in any manner with, any other entity of any type or description involved in any major element of business which Employer is performing at the time
of Employee’s Retirement Date, nor will Employee perform or seek to perform any consultation or other type of work or service with any other firm, person or entity, directly or indirectly, in any such business which competes with Employer,
whether done directly or indirectly, in ownership, consultation, employment or otherwise. Employee agrees not to reveal to outside sources, without the consent of Employer, any matters, the revealing of which could, in any manner, adversely affect
or disclose Employer’s business or any part thereof, unless required by law to do so. This Covenant Not To Compete by Employee is limited to the geographic area consisting of the counties in which Employer shall maintain a banking or other
business office at the time of Employee’s Retirement Date, shall exist for and during the term of all payments to be made under this Paragraph 2, whether made directly by Employer or as otherwise provided herein, and shall not prevent Employee
from purchasing or acquiring, as an investor only, a financial interest of less than 5% in a business or other entity which is in competition with Employer. 
  
 Employee acknowledges that the remedy at law for breach of Employee’s Covenant Not To Compete will be inadequate and that Employer shall be entitled
to injunctive relief as to any violation thereof; however, nothing herein shall be construed as prohibiting Employer from pursuing any other remedies available to it, in addition to injunctive relief, whether at law or in equity, including the
recovery of damages. In the event Employee shall breach any condition of Employee’s Covenant Not To Compete, then Employee’s right to any of the payments becoming due under Paragraphs 1 and 2 of this Agreement after the date of such breach
shall be forever forfeited and the right of Employee’s designated beneficiary(ies) or Employee’s estate to any payments under this Agreement shall likewise be forever forfeited. This forfeiture is in addition to and not in lieu of any of
the above-described remedies of Employer and shall be in addition to any injunctive or other relief as described herein. Employee further acknowledges that any breach of Employee’s Covenant Not To Compete shall be deemed a material breach of
this Agreement. 
  

 3 

 If Employee should die during the ten-year period during which Non-competition Payments are being made
under this Paragraph 2, then those payments shall terminate and future payments, if any, shall be made to Employee’s designated beneficiary(ies) or Employee’s estate in accordance with the provisions of Paragraph 3 of this Agreement.

  
 3. Continuation of Payments. Upon
Employee’s death during the original ten-year period of payments under Paragraphs 1 and 2 above, the sum of Eight Thousand Seven Hundred Thirty-Seven and 50/100 Dollars ($8,737.50) per month shall be paid to such individual or individuals as
Employee shall have designated in writing as his beneficiary(ies) as provided in Paragraph 11 below or, in the absence of such designation, to Employee’s estate, as applicable, beginning the first calendar month following the date of
Employee’s death and continuing thereafter until the expiration of said original ten-year period. Once the Deferred Compensation/Consultation Payments and Non-competition Payments have begun, whether paid by Employer or as otherwise provided
herein, the maximum payment period under this Agreement shall be ten years. Payments hereunder shall be payable each month without deductions and the recipient shall be solely responsible for the payment of all income and other taxes and
assessments, if any, applicable on those payments. 
  
 4.
Death Benefits. In the event Employee dies while employed by Employer prior to Employee’s Retirement Date, Employer will pay the sum of Eight Thousand Seven Hundred Thirty-Seven and 50/100 Dollars ($8,737.50) per month for a period
of ten years, to such individual or individuals as Employee shall have designated in writing as his beneficiary(ies) as provided in Paragraph 11 below or, in the absence of such designation, to Employee’s estate, as applicable. The first
payment shall be made not later than two months following Employee’s death. Payments under this Paragraph 4 shall be payable each month without deductions and the recipient shall be solely responsible for the payment of all income and other
taxes and assessments, if any, applicable on those payments. 
  
 5. Forfeiture of Benefits. This Agreement is subject to termination by Employer at any time and without stated cause. In the event Employer shall terminate this Agreement, Employee shall forfeit all rights to receive any
payment provided for herein. Likewise, in the event Employee’s employment is terminated, either voluntarily or involuntarily, for reasons other than retirement on his Retirement Date or his death, Employee shall forfeit all rights to receive
any payment provided for herein. Employee acknowledges and agrees that any benefit provided for herein is merely a contractual benefit and that nothing contained herein shall be construed as conferring upon Employee any vested benefits or any vested
rights to receive any payment provided for herein and that any and all payments provided for herein shall be subject to a substantial risk of forfeiture until such time as said payments are actually made by Employer. 
  

 4 

 6. Claims Procedure. Any claim for benefits under this Agreement shall be made in writing
to Employer. If any claim for benefits under this Agreement is wholly or partially denied, notice of the decision shall be furnished to the claimant within a reasonable period of time, not to exceed 90 days after receipt of the claim by Employer,
unless special circumstances require an extension of time for processing the claim. If such an extension of time is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 90-day period.
In no event shall such extension exceed the period of 90 days from the end of such initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date on which the administrator expects to render
a decision. 
  
 Employer shall provide every claimant who is
denied a claim for benefits written notice setting forth, in a manner calculated to be understood by the claimant, the following: (i) specific reasons for the denial; (ii) specific reference to pertinent provisions upon which the denial is based;
(iii) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and (iv) an explanation of the Agreement’s claims review
procedure as set forth below. 
  
 The claimant may appeal the
denial of his claim to Employer for a full and fair review. The claimant or his duly authorized representative may request a review upon written application to Employer, review pertinent documents, and submit issues and comments in writing. A
claimant (or his duly authorized representative) shall request a review by filing a written application for review with Employer or its designee (the “Reviewer”) at any time within 60 days after receipt by the claimant of written notice of
the denial of his claim. 
  
 The decision on review shall be made
by the Reviewer, who may, in its or his discretion, hold a hearing on the denied claim; the Reviewer shall make this decision promptly, and not later than 60 days after Employer receives the request for review, unless special circumstances require
extension of time for processing, in which case a decision shall be rendered as soon as possible, but not later than 120 days after receipt of the request for review. If such an extension of time for review is required, written notice of the
extension (including the special circumstances requiring the extension of time) shall be furnished to the claimant prior to the commencement of the extension. In the event that the decision on review is not furnished within the time period set forth
in this paragraph, the claim shall be deemed denied on review. 
  
 The decision on review shall be in writing and shall include reasons for the decision, written in a manner calculated to be understood by the claimant, and specific references to the pertinent provisions in the relevant documents on which
the decision is based. 
  

 5 

 7. Assignment of Rights; Spendthrift Clause. Neither Employee nor Employee’s estate or
any designated beneficiary shall have any right to sell, assign, transfer or otherwise convey the right to receive any payment hereunder. To the extent permitted by law, no benefits payable under this Agreement shall be subject to the claim of any
creditor of Employee or Employee’s estate or any designated beneficiary, or to any legal process by any creditor of any such person. 
  
 8. Unfunded Plan. Employee and Employer do not intend that the amounts payable hereunder be held by Employer in trust or as a segregated
fund for Employee or any other person entitled to payments hereunder. The benefits provided under this Agreement shall be payable solely from the general assets of Employer, and neither Employee nor any other person entitled to payments hereunder
shall have any interest in any assets of Employer by virtue of this Agreement. Employer’s obligation under this Agreement shall be merely that of an unfunded and unsecured promise of Employer to pay money in the future. To the extent that this
Agreement should be deemed to be a “pension plan,” Employee and Employer intend that it be unfunded for federal income tax purposes, as well as for Title I of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”). 
  
 9. Payments and
Funding. Any payments under this Agreement shall be independent of, and in addition to, those under any other plan, program or agreement which may be in effect between the parties hereto, or any other compensation payable to Employee
or Employee’s designee by Employer. This Agreement shall not be construed as a contract of employment nor does it restrict the right of Employer to discharge Employee at will or the right of Employee to terminate his employment at will.

  
 Employer may, in its sole discretion, purchase an insurance
policy on the life of Employee to fund or assist in the funding of this Agreement. Employee agrees to promptly supply to Employer and its selected or prospective insurance carrier, upon request, any and all information requested, in order to enable
the insurance carrier to evaluate the risks involved in providing the insurance requested by Employer. Any and all rights to any and all benefits under such insurance policy on the life of Employee shall be solely the property of Employer and all
proceeds of such policy shall be payable by the insurer solely to Employer, as owner of such policy. Employee specifically waives any rights in any insurance policy on Employee’s life owned by Employer pursuant to this Agreement. Such policy
shall not serve in any way as security to Employee for Employer’s performance under this Agreement. The rights accruing to Employee or any designee hereunder shall be solely those of an unsecured creditor of Employer and shall be subordinate to
the rights of the depositors of Employer. 
  
 Employer may, in its
sole discretion, discharge its liabilities under this Agreement to Employee, Employee’s designated beneficiary(ies) or Employee’s estate at any 
  

 6 

 time by the purchase of an annuity from a reputable insurance or similar company authorized to do, and doing, business in
North Carolina and the assignment of the rights under said annuity to the benefit of Employee, Employee’s designated beneficiary(ies) or Employee’s estate. If this option is exercised by Employer, all rights accruing to Employee,
Employee’s designated beneficiary(ies) or Employee’s estate hereunder shall be governed solely by the annuity contract and any election made under said annuity contract; and Employer shall be fully discharged from any further liabilities
to Employee, Employee’s designated beneficiary(ies) or Employee’s estate under this Agreement. 
  
 Employer may, in its sole discretion, discharge its liabilities under this Agreement to Employee, Employee’s designated beneficiary(ies) or
Employee’s estate at any time by determining the present value of the payments due hereunder, said amount to be determined by the use of the U.S. Government bond rate for the nearest year applicable to the time of the payments due hereunder for
the present value computation, and once determined, by payment of said amount in a lump sum to Employee, Employee’s designated beneficiary(ies) or Employee’s estate, as applicable. 
  
 10. Survivor Annuities and QDROs. Nothing contained in this
Agreement is intended to give or shall give any spouse or former spouse of Employee or any other person any right to benefits under this Agreement by virtue of sections 401(a)(11) and 417 of the Internal Revenue Code (relating to qualified
preretirement survivor annuities and qualified joint and survivor annuities) or Internal Revenue Code sections 401(a)(13)(B) and 414(p) (relating to qualified domestic relations orders). 
  
 11. Designation of Beneficiary(ies). In order to designate one or more beneficiaries as described in Paragraph
3 or 4 above, Employee shall file a written designation with Employer in the form attached as Exhibit A this Agreement. Each such designation shall specify, by name(s), the person(s) to whom any amounts payable under this Agreement shall be paid
following Employee’s death. From time to time, Employee may change or revoke a beneficiary designation without the consent of the beneficiary(ies) by filing a new beneficiary designation form with Employer, and the filing of a new designation
form automatically shall revoke any and all designation forms previously filed with Employer. A beneficiary designation form not properly filed with Employer prior to Employee’s death shall be of no force or effect under this Agreement.

  
 Subject to reasonable restrictions imposed by Employer and to
Employer’s right to refuse to accept such a designation for reasons satisfactory to it, Employee may designate more than one beneficiary and/or alternative or contingent beneficiaries, in which case Employee’s designation form shall
specify the relative shares and terms and conditions upon which amounts shall be paid to such multiple or alternative or contingent beneficiaries. 
  

 7 

 If, at the time of Employee’s death, (i) no beneficiary designation is on file with Employer,
(ii) no beneficiary designated by Employee has survived Employee, or (iii) there are other circumstances not covered by the beneficiary designation form on file with Employer, then Employee’s estate conclusively shall be deemed to
be the beneficiary designated to receive any amounts then remaining payable to Employee under this Agreement. 
  
 In making all determinations regarding Employee’s beneficiary, the latest designation form filed by Employee with Employer shall control, and all
changes in circumstances that occur after the filing of that designation shall be ignored. For example, if Employee’s spouse is designated as beneficiary in the latest designation filed by Employee but, thereafter, is divorced from Employee,
such designation shall remain valid until and unless Employee files a later beneficiary designation form with Employer naming a different beneficiary. 
  
 Any check for a payment under this Agreement that is issued on or before the date of Employee’s death shall remain payable to Employee and shall be
handled accordingly, whether or not the check actually is received by Employee prior to death. Any check issued after the date of Employee’s death shall be the property of Employee’s beneficiary(ies) determined in accordance with this
Paragraph 11. 
  
 12. Named Fiduciary and
Administrator. (The purpose of this Paragraph is to comply with ERISA in the event any portion of the Plan is subject to ERISA.) The named fiduciary shall be Employer. The named fiduciary shall have the authority to control and manage the
operation and administration of this Agreement. The administration of this Agreement shall be under the supervision of a director, officer or employee of Employer (hereinafter referred to as the “Administrator”) designated by the Board of
Directors of Employer. It shall be a principal duty of the Administrator to see that this Agreement is carried out in accordance with its terms. 
  
 13. [intentionally omitted] 
  
 14. Binding Effect. This Agreement shall be binding upon Employee, his heirs, personal representatives and assigns, and upon Employer, its
successors and assigns. 
  
 15. Amendment of
Agreement. This Agreement may not be altered, amended or revoked except by a written agreement signed by Employer and Employee. 
  
 16. Interpretation. Where appropriate in this Agreement, words used in the singular shall include the plural and words used in the masculine
shall include the feminine. 
  
 17. Invalid
Provision. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision
were not contained herein. 
  
 18. Governing Law.
This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of North Carolina. 
  

 8 

 19. Termination of Prior Agreement. This Agreement replaces in its entirety that
certain Employee Death Benefit and Post-Retirement Noncompetition and Consultation Agreement dated as of November 10, 1986, as amended, by and between Employer and Employee, together with all amendments thereto (the “Prior Agreement”). The
Prior Agreement is hereby terminated, and shall have no further force or effect. 
  
 IN TESTIMONY WHEREOF, Employer has caused this Agreement to be executed in its corporate name by its President, and attested by its Secretary/Assistant Secretary, all by the authority of its Board of Directors
duly given, and Employee has hereunto set his hand and adopted as his seal the typewritten word “SEAL” appearing beside his name, as of the day and year first above written. 
  

					
	THE FIDELITY BANK	 	 
			
	 By:
	 	 /s/ Mary W. Willis

	 	 

  

	
	ATTEST:
	
	 /s/ Betty K. Hedgepath

	 Secretary

  

					
	 	 	 /s/ Billy T. Woodard

	 	 (SEAL)

	 	 	 Billy T. Woodard
	 	 

  

 9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}]]