Document:

[FORM OF SUBORDINATED
NOTE]

 

THIS SUBORDINATED
NOTE IS NOT A DEPOSIT OR ACCOUNT OR OTHER OBLIGATION OF ANY OF THE BANK OR NON-BANK SUBSIDIARIES OF SERVISFIRST BANCSHARES, INC.
AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
OR ANY OTHER GOVERNMENTAL OR REGULATORY AGENCY OR INSTRUMENTALITY.

 

THIS SUBORDINATED
NOTE IS SUBORDINATED TO CLAIMS OF GENERAL CREDITORS AND TO THE PAYMENT OF OTHER INDEBTEDNESS OF SERVISFIRST BANCSHARES, INC. THIS
OBLIGATION IS UNSECURED.

 

THIS SUBORDINATED
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES
LAWS OF ANY STATE, BUT HAS BEEN OFFERED AND SOLD PURSUANT TO AND IN RELIANCE UPON EXEMPTIONS FROM REGISTRATION THEREUNDER. THIS
SUBORDINATED NOTE MAY NOT BE SOLD, ASSIGNED, CONVEYED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED BY THE HOLDER OF THIS SUBORDINATED
NOTE EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT REGISTERING THIS SUBORDINATED NOTE UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, OR SUCH OTHER EVIDENCE OBTAINED BY SUCH HOLDER AND IN ALL RESPECTS
SATISFACTORY TO SERVISFIRST BANCSHARES, INC., THAT REGISTRATION UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES
LAWS IS NOT REQUIRED FOR THE HOLDER TO LAWFULLY EFFECT SUCH SALE, ASSIGNMENT, CONVEYANCE, PLEDGE, HYPOTHECATION OR OTHER TRANSFER.

 

SERVISFIRST BANCSHARES, INC.

 

5.50% SUBORDINATED NOTE DUE NOVEMBER 9,
2022

 

	No. [_______]	November 9, 2012

 

$[__________]

 

FOR
VALUE RECEIVED, the undersigned SERVISFIRST BANCSHARES, INC. (herein called the “Company”), a corporation organized
and existing under the laws of the State of Delaware, hereby promises to pay to [____________] or registered assigns,
the principal sum of [__________] DOLLARS ($[_____]) on November 9, 2022 (the “Maturity Date”), with
interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid balance thereof at the rate of 5.50% per
annum from the date hereof, payable semi-annually on the last day of June and December in each year, commencing on December 31,
2012, and continuing thereafter until the principal hereof shall have become due and payable.

 

Payments of principal
of and interest on this Note are to be made in lawful money of the United States of America at the offices of the Company, or at
such other place as the Company shall have designated by written notice to the holder of this Note, as provided in the Note Purchase
Agreement referred to below.

 

    	1

    	 

    

 

This Note is one of
a series of Subordinated Notes (herein called the “Notes”) issued pursuant to the Note Purchase Agreement dated
as of November 9, 2012 (as from time to time amended, the “Note Purchase Agreement”), between the Company and
the respective Purchasers named therein, and is entitled to the benefits thereof. Each holder of this Note will be deemed, by its
acceptance hereof, (i) to have agreed to the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement
and (ii) to have made the representations set forth in Sections 6.1 and 6.2 of the Note Purchase Agreement. Unless otherwise indicated,
capitalized terms used but not defined herein shall have the meanings given to such terms in the Note Purchase Agreement.

 

This Note may not be
prepaid in any amount or at any time prior to the third anniversary of the date hereof. From and after the third anniversary of
the date hereof, the Company may prepay all or part of the outstanding unpaid principal balance under this Note without penalty,
as provided in Section 8.1 of the Note Purchase Agreement. The Company may be required under regulations promulgated by the FRB
to obtain prior FRB approval before making any prepayment (including payment pursuant to an acceleration clause or redemption prior
to maturity).

 

This
Note is not secured by any assets of the Company or any other collateral.

 

If an Event of Default
described in subsections (g)(i) or (ii) of Section 11 of the Note Purchase Agreement occurs and is continuing, the principal of
this Note may be declared or otherwise become due and payable by the Required Holders in the manner, at the price and with the
effect provided in the Note Purchase Agreement.

 

The
rights of payment of the principal sum hereunder or any part hereof and to any accrued interest thereon shall remain subject,
and subordinate and junior in right of payment, to the claims of all general creditors of the Company, whether now outstanding
or hereafter incurred and, upon dissolution or liquidation of the Company, no payment of principal, interest or premium (including
post-default interest) shall be due and payable under the terms of this Note until all general creditors of the Company shall have
been paid in full. In particular, the rights of payment of the principal sum hereunder or any part hereof and to any accrued interest
thereon shall remain subject and subordinate to (a) all purchased and borrowed money of the Company, (b) similar obligations of
the Company arising from off-balance sheet guarantees and direct credit substitutes, and (c) obligations of the Company associated
with derivative products such as interest and foreign exchange rate contracts, commodity contracts, and similar arrangements. In
the event of any bankruptcy, insolvency, receivership, conservatorship, reorganization, readjustment of debt, marshaling of assets
and liabilities or similar proceedings, after payment in full of all sums owing on such prior obligations, the holder of this Note
shall be entitled to be paid from the remaining assets of the Company the unpaid principal hereof and any unpaid premium, if any,
and interest before any payment or other distribution, whether in cash, property or otherwise (including post-default interest),
shall be made on account of any capital stock or any obligations of the Company ranking junior to this Note.

 

If an Event of Default
(as defined in the Note Purchase Agreement) shall occur, the registered holder hereof shall have the rights set forth in Section
12 of the Note Purchase Agreement. The Company shall reimburse and indemnify and hold such holder hereof harmless from and against
any reasonable costs (including court costs and reasonable attorneys’ fees) incurred by such holder in the collection of
any amounts due as a result of an Event of Default or as otherwise provided in the Note Purchase Agreement.

 

    	2

    	 

    

 

This Note is a registered
Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer, duly endorsed,
or accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney
duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.
Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as
the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice
to the contrary.

 

This Note shall be
construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of Alabama,
excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other
than such State.

 

	 	SERVISFIRST BANCSHARES, INC.
	 	 	 
	 	By:	 
	 	 	 
	 	Title: 	 

 

    	3Agreement

 

This Agreement (the
“Agreement”) between Glenn D. Estrella (“Estrella”), W. Jeffrey Sawyers (“Sawyers”) and Barbara
M. Johnson (“Johnson,” and together with Estrella and Sawyers, the “Employees”) and World Surveillance
Group Inc. (the “Company”) is effective on November 13, 2012 (the "Effective Date"), and is entered into
by and between Estrella, the Company’s President and Chief Executive Officer, with an address of 1608 Sheridan Drive, Wall
Township, NJ 07753, Sawyers, the Company’s Chief Financial Officer and Treasurer, with an address of 131 Calabria Springs
Cove, Sanford, FL 32771, Johnson, the Company’s Vice President, General Counsel and Secretary, with an address of 2700 Harbortown
Drive, Merritt Island, FL 32952, and the Company, a Delaware corporation with offices at State Road 405, Building M6-306A, Room
1400, Kennedy Space Center, FL 32815.

 

WHEREAS, pursuant to
certain restricted stock agreements as set forth on Exhibit A (the “Restricted Stock Agreements”) and conversion
agreements as set forth on Exhibit A (the “Conversion Agreements,” and together with the Restricted Stock Agreements,
the “Agreements”) between the Employees and the Company, the Company issued to Estrella 9,266,667 shares, to Sawyers
1,750,000 shares and to Johnson 6,400,000 shares (collectively, the “Shares”) of its common stock, par value $0.00001
per share (the “Common Stock).

 

WHEREAS, the Employees
and the Company now desire to rescind the issuance of the Shares as more particularly set forth below:

 

NOW, THEREFORE, in consideration of the
mutual promises and consideration contained herein, the parties agreed as follows:

 

1.            The Employees and the Company have
mutually agreed to rescind the issuance of their respective Shares whereby such Shares are hereby returned by the respective Employee
to the Company for cancellation and return to treasury, and hereafter all right, title and interest of the Employee in their respective
Shares is hereby terminated.

 

2.            The
Agreements as set forth on Exhibit A as they relate to the Employees’ Shares are hereby terminated and of no further
force or effect.         

 

3.            This
Agreement embodies the entire agreement between the Employees and the Company with respect to the matters set forth herein.

 

4.            This
Agreement shall be construed and governed by the laws of the State of Delaware.

 

    	Page 1 of 3

    	 

    

 

IN WITNESS WHEREOF, the Employees and the
Company have executed and delivered this Agreement effective as of the Effective Date.

 

	 	World Surveillance Group Inc.
	 	 	 
	 	By:	/s/ Anthony Bocchichio
	 	Name: Anthony Bocchichio
	 	Title: Chairman of Board of Directors
	 	 
	 	/s/ Glenn D. Estrella
	 	Glenn D. Estrella
	 	 
	 	/s/ W. Jeffrey Sawyers
	 	W. Jeffrey Sawyers
	 	 
	 	/s/ Barbara M Johnson
	 	Barbara M. Johnson

 

    	Page 2 of 3

    	 

    

 

Exhibit A

 

Estrella

 

Conversion
Agreement – dated November 2, 2011 – 666,667 shares

Restricted
Stock Agreement – dated September 28, 2011 – 600,000 shares

Restricted
Stock Agreement – dated December 28, 2011 – 1,500,000 shares

Restricted
Stock Agreement – dated December 28, 2011 – 5,000,000 shares

Restricted
Stock Agreement – dated April 3, 2012 – 1,500,000 shares

 

Sawyers

 

Restricted
Stock Agreement – dated December 28, 2011 – 500,000 shares

Restricted
Stock Agreement – dated December 28, 2011 – 750,000 shares

Restricted
Stock Agreement – dated May 10, 2012 – 500,000 shares

 

Johnson

 

Conversion
Agreement – dated November 2, 2011 – 400,000 shares

Restricted
Stock Agreement – dated September 28, 2011 – 500,000 shares

Restricted
Stock Agreement – dated December 28, 2011 – 1,500,000 shares

Restricted
Stock Agreement – dated December 28, 2011 – 2,500,000 shares

Restricted
Stock Agreement – dated April 3, 2012 – 1,500,000 shares

 

    	Page 3 of 3

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