Document:

Financial Investors of the South,Inc. 2004 Incentive Stock Option Plan

 EXHIBIT 10.3 
  
 FINANCIAL INVESTORS OF THE SOUTH, INC. 
 2004 Incentive Stock Option Plan 
  
 Financial Investors of the South, Inc., a Delaware corporation (the “Company”), hereby establishes an incentive stock option plan, which shall be known as the “2004 Incentive Stock Option Plan” (the “Plan”).
The Plan provides for the grant of options (“Options”) to purchase shares of common stock, par value $1.00 per share, of the Company (“Shares”) to certain employees of the Company or its subsidiaries, Bank of Alabama, an Alabama
banking corporation, and Capital Bank, an Alabama banking corporation (collectively, the “Subsidiaries”). The Plan shall become effective on November 15, 2004, the date of its approval by the Board of Directors of the Company (the
“Effective Date”). This Plan shall be submitted to the Company’s stockholders for ratification and approval within twelve (12) months from the Effective Date. The Plan shall remain in effect until May 31, 2005, unless sooner
terminated by the Board of Directors in the manner described in this Plan. 
  
 1. Plan Shares; Administration of Plan. Subject to adjustment as provided below in Section 3, the maximum number of Shares of that may be issued under this Plan is Forty Thousand Five Hundred (40,500).
This Plan authorizes the grant of only those Options designated on Schedule I of this Plan, which is attached hereto and incorporated herein as part of this Plan. This Plan and the Options granted hereunder shall be administered by the
Compensation Committee of the Board of Directors of the Company or any other committee appointed for such purpose (“Committee”). If no such appointment is in effect at any time, the Board of Directors of the Company shall constitute and
act as the Committee. 
  
 2. Incentive Stock Options and
Agreements. The individuals named on Schedule I (each, a “Participant”), who are employees of either the Company or one of its Subsidiaries, shall be granted the number of Options designated on Schedule I for such Participant as of the
Effective Date. Each Option granted under this Plan is intended to qualify as an incentive stock option (an “Incentive Stock Option”) under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), and shall
be evidenced by a Stock Option Agreement that specifies the terms and conditions of the grant (an “Agreement”). Options shall be subject to the terms and conditions set forth in this Plan and such other terms and conditions not
inconsistent with this Plan as the Committee may specify. 
  
 3.
Adjustment. In the event of any change in corporate capitalization, such as a stock dividend or stock split, or a corporate transaction, such as any merger, consolidation, separation, including a spin-off, or other distribution of stock or
property of the Company, any reorganization (whether or not such reorganization comes within the definition of such term in Section 368 of the Code) or any partial or complete liquidation of the Company, such adjustment shall be made in the
number and class of Shares reserved under the Plan, and in the number, class and price of Shares subject to outstanding awards granted under the Plan, as may be determined to be appropriate and equitable by the Committee, in its sole discretion, to
prevent dilution or enlargement of rights; provided, however, that the number of Shares subject to any award shall always be a whole number. 
  
 4. Option Price. “Fair Market Value” means the value determined by the Committee in good faith using any method or methods which the
Committee may deem appropriate, and such determination of Fair Market Value shall be binding upon all parties for all purposes under this Plan. The Committee hereby determines that the Fair Market Value of Common Stock as of the Effective Date of
this Plan is Fifteen Dollars ($15.00) per Share. The price for all of the Options described on Schedule I of this Plan, which are to be granted as of the Effective Date, shall be Fifteen Dollars ($15.00) per share (the “Option Price”).
Notwithstanding the foregoing, in the case of an Incentive Stock Option granted to any Participant who owns ten percent or more of the outstanding shares of Company stock, the Option Price shall be adjusted so that it is not be less than one hundred
and ten percent (110%) of the Fair Market Value of the Common Stock on the date of grant. 
  
 5. Term of Options. The period during which an Option may be exercised shall be determined by the Committee and specifically set forth in the applicable Agreement; provided, however, that an Option shall not be
exercisable after ten (10) years (five (5) years in the case of an Incentive Stock Option granted to any Participant who owns ten percent of the outstanding shares of the Company) from its date of grant. 
  
 6. Exercise of Options. The Shares subject to an Option may be
purchased in such installments and on such exercise dates as shall be set forth in the applicable Agreement. Any Shares not purchased on the applicable 

  

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exercise date may be purchased thereafter at any time prior to the final expiration of the Option. In no event shall any Option be exercised, in whole or in
part, after its expiration date. 
  
 7. Payment. Options
shall be exercised by the delivery of a written notice of exercise to the Company, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares. The Option Price upon exercise of
any Option shall be payable to the Company either: (a) in cash or its equivalent; (b) by tendering previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the aggregate Option Price (provided that
the Shares which are tendered have been held by the Participant for at least six (6) months prior to their tender to satisfy the Option Price); (c) by surrendering Options having a “Net Value” equal to the aggregate Option Price
of the Options to be exercised, where “Net Value” is equal to (i) the “Fair Market Value” of the shares of Stock relating to surrendered Options less (ii) the aggregate Option Price for the surrendered Options; or
(d) by a combination of (a), (b) and (c). The Committee also may allow cashless exercise through a registered broker-dealer pursuant to such cashless exercise procedures which are, subject to applicable securities laws restrictions, deemed
acceptable by the Committee or by any other means which the Committee determines to be consistent with the Plan’s purpose and Applicable Law. As soon as practicable after receipt of a written notification of exercise and full payment, the
Company shall deliver to the Participant, in the Participant’s name, Share certificates in an appropriate amount based upon the number of Shares purchased under the Option(s). 
  
 8. Termination of Service. In the event that a Participant resigns, retires or his employment with the Company or its
Subsidiaries terminates before the expiration of his or her Agreement under this Plan, the following shall apply: 
  
 (a) Disability. If the employment of the Participant is terminated solely on account of Disability (as defined below), then his or
her Options may be exercised by the Participant or his or her legal representative in the manner prescribed in the applicable Agreement, until the earlier to occur of: the expiration of the Agreement by its terms or the first anniversary of the
effective date of the termination of employment. “Disability” of a Participant exists if the Participant (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) has, by reason of any medically determinable physical or mental impairments which can be expected to result in death
or can be expected to last for a continuous period of not less than 12 months, received income replacement benefits for a period of not less than 3 months under an accident or health plan covering employees of the Company and its Subsidiaries.

  
 (b) Death. If the employment of a
Participant is terminated due to death of the Participant, then his or her Options may be exercised by the Participant’s legal representative, executor, administrator, or personal representative, or the person or persons to whom the Option has
been validly transferred by such executor or administrator pursuant to will or the laws of descent and distribution (as the case may be), in the manner prescribed in the Agreement, until the earlier to occur of: the expiration of the Agreement by
its terms or the first anniversary of the effective date of the termination of employment. 
  
 (c) Retirement. If Participant retires from employment (in accordance with the terms of the Company’s then-current retirement
program), his or her Option shall be exercisable in the manner prescribed in the applicable Agreement until the earlier to occur of: the expiration of the Agreement by its terms or 90 days following the effective date of retirement. 
  
 (d) Other. If the employment of Participant is
terminated for any reason other than Disability, death or retirement, then his or her unexercised Options shall terminate immediately, unless the Agreement and/or Committee permits later exercise. Furthermore, in the event of resignation of the
Participant from employment with the Company or the Subsidiaries or termination of his or her employment by the Company or the Subsidiaries for “cause”, any Shares obtained by the Participant pursuant to exercise of Options within the
180-day period preceding such resignation or termination shall be forfeited. 
  
 9. Nontransferability. No Option granted under this Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.
Further, all Options granted to a Participant under this Plan shall be exercisable during his or her lifetime only by such Participant. The interests of any Participant under this Plan are not subject to the claims of creditors and may not, in any
way, be assigned, alienated or encumbered except as provided in an Agreement. 
  

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 10. General Limits. Incentive Stock Options shall not be granted under this Plan to any
Participant if such grant would result in the Participant holding the right to exercise for the first time in any one calendar year, under all Incentive Stock Options granted under this Plan or any other plan maintained by the Company, with respect
to Shares having an aggregate Fair Market Value, determined as of the date of the Option is granted, in excess of $100,000. Should it be determined that an Incentive Stock Option granted under this Plan exceeds such maximum for any reason other than
a failure in good faith to value the Shares subject to such Option, the excess portion of such Option shall be considered a non-statutory stock option. To the extent the Participant holds two (2) or more such Options which become exercisable
for the first time in the same calendar year, the foregoing limitation on the exercisability of such Options as Incentive Stock Options under the federal tax laws shall be applied on the basis of the order in which such Options are granted. If, for
any reason, an entire Option does not qualify as an Incentive Stock Option by reason of exceeding such maximum, such Option shall be considered a non-statutory stock option. 
  
 11. Change in Control. Upon the occurrence of a Change in Control (as defined below), unless otherwise specifically
prohibited under applicable laws: (i) any and all Options granted hereunder shall become immediately exercisable, and shall remain exercisable throughout their entire term. “Change in Control” means the occurrence of any of the
following: (a) when any “person,” as such term is used in Section 13(d) or 14(d) of the Securities Exchange Act of 1934 (other than the Company or any subsidiary or any employee benefit plan of the Company or any subsidiary
(including its trustee)), is or becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated under such Act), directly or indirectly of securities of the Company representing twenty percent (20%) or more of the combined voting
power of the Company’s outstanding securities; or (b) any transaction requiring stockholder approval for the acquisition of the Company by an entity other than the Company or any subsidiary through the purchase of assets, or by merger,
share exchange, or otherwise. 
  
 12. Amendment or
Termination. The Board may amend, alter or terminate this Plan in any respect at any time; provided, however, that, after this Plan has been approved by the stockholders of the Company, no amendment, alteration or termination of this Plan shall
be made by the Board without approval of (a) the Company’s stockholders to the extent stockholder approval of the amendment is required by applicable laws, if any, and (b) each affected Participant if such amendment, alteration or
termination would adversely affect his or her rights or obligations under any Options granted prior to the date of such amendment, alteration or termination. 
  
 13. No Employment Rights. This Plan does not constitute inducement or consideration for the employment or service of any Participant, nor is it a
contract between the Company or its Subsidiaries and any Participant. Participation in this Plan shall not give a Participant any right to be retained in the service of the Company or its Subsidiaries. 
  
 14. No Bar to Additional Awards. Neither the adoption of this Plan nor
its submission to the stockholders shall be taken to impose any limitations on the powers of the Company or its Subsidiaries to issue, grant, or assume options, warrants, rights, or restricted stock, or other awards otherwise than under this Plan,
or to adopt other stock option, restricted stock, or other plans or to impose any requirement of stockholder approval upon the same. 
  
 15. Successors. All obligations of the Company under this Plan and Options granted hereunder shall be binding on any successor to the Company or
its Subsidiaries, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all substantially all of the business or assets of the Company or its Subsidiaries. 
  
 16. Governing Law. This Plan shall be governed, construed and
administered in accordance with the laws of the State of Delaware, without regard to conflicts of law principles. 
  
 17. Compliance with the Code. The Plan shall be governed, construed and administered in compliance with the deferred compensation provisions of
Section 409A of the Code and shall be amended as necessary to maintain compliance with the provisions of Section 409A. The Committee may place such restrictions or provisions in any Agreement as may be necessary to comply with the
provisions of Section 409A of the Code. 
  

 3Form of Incentive Stock Option Award

 EXHIBIT 10.4 
  
 FINANCIAL INVESTORS OF THE SOUTH, INC. 
 2004 INCENTIVE STOCK OPTION PLAN 
 STOCK OPTION AGREEMENT 
  
 These securities have not been registered under the Securities Act of 1933
(the “Act”) or the securities laws of any state, and they or any interest therein may not be offered, sold, transferred, assigned, pledged or otherwise disposed of in whole or in part, in such a manner as to violate the registration
requirements of the Act or any applicable state securities laws, and (a) without the issuer having received (i) prior written notice from the holder of the holder’s intention to make such offer, sale, transfer, assignment, pledge or
other disposition, and (ii) an opinion of counsel that such offer, sale, transfer, assignment, pledge or other disposition will not (A) result in the issuer being subjected to any additional regulatory requirements, or (B) violate
applicable law or the certificate of incorporation of the issuer; and (b) without the holder having received the prior written consent of the issuer to such offer, sale, transfer, assignment, pledge or other disposition. 
  
 THIS STOCK OPTION AGREEMENT (this “Agreement”) is made and entered
into effective as of the 15th day of November, 2004, by and between FINANCIAL INVESTORS OF THE SOUTH, INC., a
Delaware corporation (the “Company”), and __________________________________ (the “Optionee”), pursuant to 2004 Incentive Stock Option Plan (the “Plan”) of the Company. 
  
 RECITALS 
  
 The Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of the Company has
determined that it would be to the advantage and best interests of the Company and its stockholders to grant the option provided for in this Agreement to the Optionee in recognition of past services rendered by the Optionee to the Company and to
give the Optionee additional incentive in furthering the business success of the Company. The Company is the owner of 100% of the capital stock of Bank of Alabama, an Alabama banking corporation, and of Capital Bank, an Alabama banking corporation.

  
 In consideration of the premises and mutual covenants
contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 1. The option rights granted herein are in all respects subject to, and shall be governed and determined by, the provisions
set forth in the Plan and to any rules which might be adopted by the Committee with respect thereto to the same extent and with the same effect as if set forth fully herein. Capitalized terms not otherwise defined herein shall have the meanings set
forth in the Plan. 
  
 2. The Company does hereby grant unto the
Optionee the right and option, in the form of an Incentive Stock Option (ISO) intended to qualify under Section 422A of the Internal Revenue Code (“Incentive Stock Option”), to purchase from the Company ______ Thousand
(            ) Shares of the Company’s common stock, par value $1.00 per share (the “Option”), from authorized but unissued Shares of the Company or Shares held in the
treasury of the Company (to be determined in the discretion of the Company), at and for a purchase price of $15.00 per share (the “Exercise Price”), which has been determined by the Committee to be the Fair Market Value of a Share of the
Company’s stock as of the date hereof. 
  
 3. The Option
shall be exercised by (i) written notice delivered to the Company of the Optionee’s intent to exercise the Option, which notice shall specify the number of Shares then being exercised, the person in whose name the stock certificate or
certificates for such Shares of stock is to be registered, such person’s address and the social security number or tax identification number of such person; (ii) delivery of such representations and agreements as to the Optionee’s
investment intent with respect to such Shares as may be satisfactory to the Company’s counsel; and (iii) the payment in full to the Company of an amount equal to the amount obtained by multiplying the Exercise Price by the number of Shares
then being purchased. The Option price shall be payable in full in cash or its equivalent at the time of the exercise of the Option. 
  

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 4. In lieu of exercise of Options by payment in cash or its equivalent of the Option Price, the Optionee
may exercise Options by surrendering Options having a “Net Value” equal to the aggregate Exercise Price of the Options to be exercised, where “Net Value” is equal to (i) the “Fair Market Value” (as hereinafter
defined) of the shares of Common Stock relating to surrendered Options, less (ii) the aggregate Exercise Price for the surrendered Options. The “Fair Market Value” shall be the fair market value of a Share determined in the good faith
judgment of the Board of Directors of the Company, which may, but is not required to be, based in whole or in part upon one or more of the following (i) an appraisal by a person or firm with experience in appraising the value of shares similar
to the Shares of Company stock; (ii) a comparison of the book value and/or price to earnings multiples of the Shares to that of other financial institutions; and (iii) actual arm’s length basis market transactions in Shares of which
the Company is aware. Such determination of Fair Market Value made in writing by the Board of Directors with respect to a particular date of exercise shall be binding upon the Optionee and the Company for all purposes of this Agreement. The Company
agrees to make such determination of “Fair Market Value” upon at least thirty (30) days prior written request by the Optionee (or such shorter period as the Company may agree). The Company shall provide a Fair Market Value which is
valid for purposes of this Agreement for a period of at least ten (10) days with respect to each request for determination of a Fair Market Value made by an Optionee; provided that the Company shall not be required to make any
determination of Fair Market Value with respect to request by an Optionee more than twice each calendar year except that, in any event, the Company upon request of the Optionee made within ninety (90) days of expiration of an Option shall
provide a Fair Market Value upon at least ten (10) days prior written request. 
  
 5. Subject to paragraph 7, the Option may be exercised and Shares may be purchased by the Optionee as the result of such exercise commencing on the date hereof and ending on the earlier to occur of (the
“Time of Expiration”): (i) the date all of the Shares subject to the Option are purchased pursuant to the terms of this Agreement; or (ii) 5:00 p.m. Birmingham, Alabama time, November 14, 2014. 
  
 6. In case of any exercise of the Option, this Agreement, accompanied by
payment of the full purchase price for the Shares then being purchased, shall be surrendered to the Company. The Company will thereupon cause to be issued and delivered to the Optionee, as soon as reasonably may be done in accordance with the terms
of the Plan, a certificate or certificates, representing the Shares so purchased and fully paid for. In the event of a partial exercise, the Company will endorse on this Agreement the fact that the Option has been partially exercised on such date
and the extent of such exercise. 
  
 7. The Optionee may not
exercise any of the option rights granted herein unless at all times during the period beginning on the date hereof and ending on the date of exercise the Optionee was a full-time employee of the Company, subject to the following: 
  
 (a) if the employment of the Optionee has been terminated
solely on account of Disability or death of the Optionee, then the Option may be exercised by the Optionee, the Optionee’s legal representative in the event of the Disability of the Optionee, or the executor, administrator, or personal
representative of the estate of the Optionee, or the person or persons to whom the Option has been validly transferred by such executor or administrator pursuant to will or the laws of descent and distribution in the event of death (as the case may
be), in the manner prescribed herein before the Time of Expiration and within one (1) year after the effective date of the termination of the Optionee’s employment; and 
  
 (b) if Optionee retires from employment (in accordance with the terms of the Company’s then-current
retirement program), his or her Options hereunder shall be exercisable in the manner prescribed herein before the Time of Expiration and within ninety days after the effective date of resignation of Optionee. 
  
 8. Notwithstanding anything else to the contrary contained herein, any Shares
issued pursuant to the exercise of an Option hereunder shall be immediately forfeited and returned to the Company in the event that either (i) the Optionee resigns employment from the Company (including its affiliates), or (ii) is
terminated from employment by the Company (or its affiliates) “for cause”, in each case within 180 days after the exercise of such Option hereunder (the “Forfeiture Period”). Upon such forfeiture, the Exercise Price, if any, paid
in cash or its equivalent by the Optionee shall be repaid, without interest, to the Optionee by the Company. No reimbursement shall be made in the event that such Option was exercised pursuant to the provisions of Section 4 

  

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hereof. The Company shall be entitled, in its sole discretion, to either place a legend on any certificate for Shares subject to this provision noting the
restriction, or the Company may retain the certificates representing such Shares until the expiration of the Forfeiture Period. 
  
 9. This Agreement and the option rights granted herein are personal to the Optionee and may not in any manner or respect be assigned or transferred
otherwise than by will or the laws of descent and distribution, and are exercisable during the Optionee’s lifetime only by the Optionee or, in the event of Disability, his legal representative. 
  
 10. This Agreement shall terminate and be of no further force or effect at
the Time of Expiration. 
  
 11. This Agreement shall be governed
by and construed in accordance with the laws of the State of Alabama. Any 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 provisions were omitted. 
  
 12. This Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto and their respective executors, administrators, personal representatives, legal representatives, heirs, and successors in interest.

  
 13. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original, and such counterparts shall, together, constitute and be one and the same instrument. 
  
 14. The Optionee hereby consents to any withholding actions that the Company deems reasonably necessary to enable the Company to obtain the benefit of an
income tax deduction under the Internal Revenue Code of 1986, as amended, and any related state or local income tax laws, in the amount of the difference between the Exercise Price of the Shares and its fair market value on the date of exercise or
the lapse of a restriction, as applicable. 
  
 IN WITNESS WHEREOF,
this Agreement has been executed by the Company and the Optionee as of the date first above written. 
  

			
	FINANCIAL INVESTORS OF THE SOUTH, INC.
		
	By:	 	 
	 Its:
	 	 

  

	
	OPTIONEE
	
	 
	 
	[Print Name]

  

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