Document:

EX-10.3 CHANGE OF CONTROL AGRMT/CLARENCE POUNCEY

 

Execution Copy

Exhibit 10.3

CHANGE IN CONTROL AGREEMENT

     This CHANGE IN CONTROL AGREEMENT (this “Agreement”), dated as of the 6th day of June, 2006,
between ServisFirst Bank, an Alabama State chartered bank (the “Bank”), and Clarence Pouncey (the
“Executive”).

     WHEREAS, the Bank employs the Executive as Executive Vice President, and in consideration of
such employment the Bank and the Executive wish to provide for certain payment to the Executive in
the event such employment is terminated following a Change in Control (as defined herein).

     NOW, THEREFORE, in consideration of the mutual covenants set forth herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Bank
and the Executive agree as follows:

     1. Employment Status. The Bank has employed the Executive as Executive Vice President
as an employee-at-will. Unless and until a Change in Control shall have occurred, nothing in this
Agreement shall modify, amend or vary the terms of such employment or constitute any independent
obligation of the Bank to employ, or continue to employ, the Executive.

     2. Change In Control. For purposes of this Agreement, a “Change in Control” is hereby
defined to be:

     (a) a merger, consolidation or other corporate reorganization (other than a holding
company reorganization) of the Bank in which the Bank does not survive, or if it survives,
the shareholders of the Bank before such transaction do not own more than 50% of,
respectively, (i) the Common Stock of the surviving entity, and (ii) the combined voting
power of any other outstanding securities entitled to vote on the election of directors of
the surviving entity.

     (b) the acquisition, other than from the Bank, by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended from time to time (the “Exchange Act”)) of beneficial ownership of 50% or more of
either the then outstanding shares of Common Stock of the Bank or the combined voting power
of the then outstanding voting securities of the Bank entitled to vote generally in the
election of directors; provided, however, that neither of the following shall constitute a
Change in Control:

     (i) any acquisition by the Bank, any of its subsidiaries, or any employee
benefit plan (or related trust) of the Bank or its subsidiaries, or;

     (ii) any acquisition by any corporation, entity, or group, if, following such
acquisition, more than 50% of the then outstanding voting rights of such
corporation, entity or group are owned, directly or indirectly, by all or

1

 

Execution Copy

substantially all of the persons who were the owners of the Common Stock of the
Bank immediately prior to such acquisition; or

     (c) individuals who, as of the effective date of this Agreement, constitute the Board
of Directors of the Bank (the “Incumbent Bank Board”) cease for any reason to constitute at
least a majority of such Board of Directors (the “Board”), provided that any individual
becoming a director subsequent to such date, whose election, or nomination for election by
the Bank’s shareholders, was approved by a vote of at least a majority of the directors then
comprising the Incumbent Bank Board, shall be considered as though such individual were a
member of the Incumbent Bank Board, but excluding, for this purpose, any individual whose
initial assumption of office is in connection with an actual or threatened election contest
relating to the election of the directors of the Bank (as such terms are used in Rule 14a-11
of Regulation 14A promulgated under the Exchange Act); or

     (d) approval by the shareholders of the Bank of:

     (i) a complete liquidation or dissolution of the Bank, or

     (ii) the sale or other disposition of all or substantially all the assets of
the Bank, other than to a corporation, with respect to which immediately following
such sale or other disposition, more than 50% of, respectively, the
then outstanding shares of common stock of such corporation, and the combined voting power of the
then outstanding voting securities of such corporation entitled to vote generally in
the election of directors, is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the outstanding Common Stock of the Bank, and the
outstanding voting securities of the Bank immediately prior to such sale or other
disposition, in substantially the same proportions as their ownership, immediately
prior to such sale or disposition, of the outstanding Common Stock of the Bank and
outstanding securities of the Bank, as the case may be.

By way of illustration, and not limitation, Section 2(d)(ii) would not be applicable to
the sale of the assets of the Bank to a new corporation (“Newco”) assuming the shareholders
of the Bank own more than 50% of the outstanding shares and voting power of Newco in
substantially the same proportions as they held in the Bank.

     (e) Notwithstanding the foregoing, if Section 409A of the Internal Revenue Code of 1986
(the “Code”) would apply to any payment or right arising hereunder as a result of a Change
in Control as hereinabove described, then with respect to such right or payment the only
events that would constitute a Change in Control for purposes hereof shall be those events
that would constitute a change in the ownership or effective control of the corporation, or
in the ownership of a substantial portion of the assets of the corporation in accordance
with said section 409A.

2

 

Execution Copy

     3. Termination Following Change in Control. Except as otherwise provided in Section 4
hereof, the Bank will provide or cause to be provided to the Executive the payment described in
Section 4 hereof in the event that the Executive’s employment is terminated at any time within two
years (or, if Section 409A is applicable, and a lesser period is required thereunder, then such
lesser period) following a Change in Control (as such term is defined in Section 2) under the
circumstances stated in (a) or (b) below:

     (a) by the Bank for reasons other than for Cause (as is defined below) or other than as
a consequence of the Executive’s death, permanent disability or attainment of normal
retirement date; or

     (b) by the Executive following the occurrence of any of the following events:

     (i) the assignment of the Executive to any duties or responsibilities that are
materially inconsistent with his position, duties, responsibilities or status
immediately preceding such Change in Control, or a change in his reporting
responsibilities or titles in effect at such time resulting in a reduction of his
responsibilities or position;

     (ii) the reduction of the Executive’s base salary or, to the extent such has
been established by the Bank Board or its Compensation Committee, target bonus
(including any deferred portions thereof) or substantial reduction in the
Executive’s level of benefits or supplemental compensation from those in effect
immediately preceding such Change in Control; or

     (iii) the transfer of the Executive to a location requiring a change in
residence or a material increase in the amount of travel normally required of the
Executive in connection with his employment.

Termination of the Executive’s employment for “Cause” shall mean: (A) a pattern of conduct which
tends to hold the Bank up to ridicule, or which adversely affects the Bank, in the business
community, (B) engaging in conduct disloyal to the Bank, (C) non-diligent performance of
Executive’s duties, (D) failure to appear for work during regularly scheduled hours without a
sufficient reason, (E) failure to comply with any of the Bank’s policy and procedures as from time
to time amended, (F) any action against the Executive by federal or state banking regulatory
authorities acting under lawful authority pursuant to provisions of federal or state law or
regulation which may be in effect from time to time, (G) any act (including any omission or failure
to act) that constitutes, on the part of the Executive, fraud, dishonesty, gross negligence,
misconduct, incompetence, or breach of fiduciary duty involving direct or indirect gain to or
personal enrichment of the Executive, (H) conviction of any felony crime and (I) dependence upon,
or abuse of, any addictive substance, including but not limited to, alcohol, amphetamines,
barbiturates, LSD, cocaine, marijuana, or narcotic drugs; provided, however, that in the
case of clauses (A) through (E) above, such conduct shall not constitute Cause unless (1) there
shall have been delivered to the Executive a written notice setting forth with specificity the
reasons that the Bank Board believes the Executive’s conduct constitutes the criteria set forth in
clause (A) through (E), as the case may be, (2) the Executive shall have been provided the
opportunity

3

 

Execution Copy

to be heard in person by the Bank Board (with the assistance of the Executive’s counsel if the
Executive so desires), and (3) after such hearing, the termination is evidenced by a resolution
adopted in good faith by a majority of the members of the Bank Board (other than the Executive).

     4. Rights and Payment Upon Termination upon Change in Control. In the event of the
termination of the Executive’s employment under any circumstance set forth in Section 3 hereof
(“Termination”), the Bank agrees to pay in cash to the Executive an amount equal to one (1) times
the Executive’s then current annual base salary as approved by the Bank Board or its Compensation
Committee or any designee thereof for the year in which the Change in Control occurs. Payment
shall be made in a lump sum to the Executive within 30 days of Termination. The Bank’s obligation
to pay the Executive the payment provided in this Section 4 shall be absolute and unconditional and
shall not be affected by any circumstances, including, without limitation, any offset,
counterclaim, recoupment, defense or other right, which the Bank or any subsidiary may have against
him or anyone else. All amounts payable by or on behalf of the Bank under this Section 4 shall,
unless specifically stated to the contrary herein, be paid without notice or demand. Each and
every payment made under this Section 4 by or on behalf of the Bank shall be final and the Bank and
its subsidiaries shall not, for any reason whatsoever, seek to recover all or any part of such
payment from the Executive or from whoever shall be entitled thereto. If the Executive is
terminated for Cause as defined in Section 3 hereof, the Bank shall have no obligation to provide
or cause to be provided to the Executive the payment described in this Section 4.

     5. Federal Rules and Regulations. This Agreement is subject to all the laws, rules
and regulations governing Alabama state chartered member banks, and, in particular, the provisions
of 12 U.S.C. Section 1828(k) and 12 C.F.R. Part 359.

     To the extent that any provision of this Agreement is inconsistent with applicable federal
laws, rules or regulations, such laws, rules or regulations shall control. In such case, such
provision of this Agreement shall be invalid, but only to the extent necessary for this Agreement
to comply with applicable federal laws, rules and regulations. To the extent that any provision of
any other Section of this Agreement is inconsistent with any provision of this Section 5, such
provision of this Section 5 shall govern.

     6. Compliance with Section 409A. This Agreement shall be amended prior to December
31, 2006 to the extent necessary to comply with Section 409A of the Code. Prior to such amendment,
and notwithstanding anything contained herein to the contrary, this Agreement shall be construed in
a manner consistent with Section 409A of the Code and the parties shall take such actions as are
required to comply in good faith with the provisions of Section 409A of the Code.

     7. Waiver. No waiver of any obligation of any party hereto under this Agreement shall
be effective unless in a writing specifying such waiver and executed by the other party. No waiver
of any right or remedy of any party hereto under this Agreement shall be effective unless in a
writing specifying such waiver and executed by such party. A waiver by any party hereto of any of
its rights or remedies under this Agreement on any occasion shall not be a bar to the

4

 

Execution Copy

exercise of the same right or remedy on any subsequent occasion or of any other right or remedy at
any time.

     8. Binding Effect; Benefits. This Agreement shall inure to the benefit of, and shall
be binding upon, the parties hereto and their respective successors, permitted assigns, heirs and
legal representatives, including, without limitation, any corporation with which the Bank or the
Bank may merge or consolidate; provided, however, that this Agreement, because it relates to
personal services, cannot be assigned by the Executive.

     9. Attorneys’ Fees and Costs. If any action at law or in equity is necessary to
enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to
reasonable attorneys’ fees, costs, and necessary disbursements in addition to any other relief to
which he or it may be entitled.

     10. Notices. Any notice or other written communication, with respect to the
employment of the Executive by the Bank, or any matter related to the rights or obligations of any
party under this Agreement, and to be given to a party hereto, shall be given to such party at the
address for such party provided herein, or such other address as such party shall hereafter
provide, in writing, to the other party.

	 	 	 
	To the Executive:

	 	Clarence Pouncey
	 

	 	371 Woodward Court
	 

	 	Birmingham, Alabama 35242
	 
	 	 
	To the Bank (personally delivered,
	 	 
	airfreight or overnight delivery):

	 	3300 Cahaba Road, Suite 300
	 

	 	Birmingham, Alabama 35223
	 

	 	Attention: Chief Executive Officer
	 
	 	 
	To the Bank (via mail):

	 	P.O. Box 1508
	 

	 	Birmingham, Alabama 35201-1508
	 

	 	Attention: Chief Executive Officer

All such notices or communications shall be given by being personally delivered, placed in the
United States mail, postage prepaid, certified or registered mail, or by being sent by prepaid air
freight, overnight delivery, which is guaranteed and acknowledgement of receipt of which is
required, to the party to which such notice or communication is to be given at the address for such
party specified above. Each such notice shall be deemed to be effective upon receipt, if personally
delivered, one business day after being so sent by air freight, or five business days after being
so mailed. For purposes of this Agreement, a business day shall mean a day other than a Saturday,
Sunday or federal or Alabama state holiday.

     11. Integration and Amendments. This Agreement constitutes the entire agreement and
understanding between the parties hereto with respect to the subject matter hereof and supersedes
any prior agreement or understanding, whether written or oral, relating to such subject matter. No
modification or amendment to this Agreement shall be effective or binding

5

 

Execution Copy

unless in writing, specifying such modification or amendment, executed by all of the parties
hereto.

     12. Headings. The headings contained in this Agreement are for reference purposes
only and shall not affect the construction or interpretation of this Agreement.

     13. Severability. Should any section, provision, or portion of this Agreement be
declared invalid or unenforceable in any jurisdiction, then such section, provision or portion
shall be deemed to be (a) severable from this Agreement as to such jurisdiction (but not elsewhere)
and shall not affect the remainder hereof, and (b) amended to the extent, and only to the extant,
necessary to permit such section, provision or portion, as the case may be, to be valid and
enforceable in such jurisdiction (but not elsewhere).

     14. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall, when executed, be deemed to be an original, but all of which together shall
constitute one and the same instrument.

     15. Governing Law. This Agreement is made and shall be construed under the internal
laws, but not the conflicts of law provisions, of the State of Alabama.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	EXECUTIVE:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Clarence Pouncey
	 	 
	 	 	 	 	 
	 

	 	 	 	Clarence Pouncey	 	 
	 
	 	 	 	 	 	 
	 	 	SERVISFIRST BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas A. Broughton III	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Thomas A. Broughton III	 	 
	 

	 	 	 	Chief Executive Officer	 	 

6EX-10.4 EMPLOYMENT AGREEMENT OF ANDREW N. KATTOS

 

Exhibit 10.4

EMPLOYMENT AGREEMENT

THIS AGREEMENT (“Agreement”), made and entered into as of April 27, 2006, by and between Andy
Kattos (the “Executive”) and ServisFirst Bank (“ServisFirst”).

In consideration of the mutual covenants and agreements set forth below, it is hereby covenanted
and agreed by the Executive and ServisFirst as follows:

	1.	 	TERMS OF EMPLOYMENT. Subject to the terms of this Agreement, there shall be two (2) terms of
employment during the course of this Agreement. The first employment term (“Employment Term
I”) shall commence on March 28, 2006, (the “Hire Date”) and shall end at the close of business
on March 28, 2009. The second employment term (“Employment Term 2”) shall begin on March 29,
2009, and shall end at the close of business on March 29, 2011. The term “Expiration Date”
shall mean the date upon which Employment Term 2 expires, and shall also be defined as the
date upon which either Executive or ServisFirst terminates this Agreement pursuant to the
terms and conditions described herein.
	 
	2.	 	POSITION. The Executive shall serve as President and C.E.O., ServisFirst of Huntsville and
Executive Vice President, ServisFirst upon approval by the State Banking Department. During
the Employment Term, the Executive shall have the responsibility to develop and retain
business on behalf of ServisFirst; to achieve personal goals which shall be established
annually by mutual agreement between Executive and ServisFirst. During the Employment Term,
the Executive shall devote his best efforts and exercise all reasonable and necessary
diligence in the performance of his duties.
	 
	3.	 	COMPENSATION
	 
	 	 	(a) Executive shall receive an annual base salary of $170,000.00, payable every two weeks.
Executive’s base salary shall be increased by $10,000.00 on March 28, 2007, and by an
additional $10,000.00 on March 28, 2008. In addition to annual base salary, Executive shall
receive a signing bonus of $60,000.00, 50% of which shall be paid to Executive within two
weeks of the Hire Date, with the remainder to be paid in equal installments over the three
calendar months following the Hire Date. Executive shall receive a monthly automobile
allowance of $700.00, and shall be reimbursed for one of each country, civic, and dinner
club dues. ServisFirst will provide Executive with a cell phone and/or Blackberry
communication device. Executive will have the opportunity to receive incentive based
compensation of up to 30% of Executive’s base salary for the year 2006, and up to 50% of
Executive’s base salary for the years 2007, 2008, 2009, 2010, and 2011, upon approval by
the State Banking Department. Except as provided in section 4(c)(ii) of this Agreement,
Executive shall forfeit any right to unpaid incentive pay upon his termination, regardless
of the timing of such termination. The terms under which Executive will have the
opportunity to receive this incentive based compensation will be established by ServisFirst
annually.

 

 

	 	 	Executive may also be eligible for additional incentive based compensation based on
performance as may be awarded from time to time by ServisFirst. ServisFirst will provide a
401(k) match to Executive of 100% of the first 4% contribution, as well as pay 60% of
Executive’s family medical insurance. Executive will also be provided with a dental plan
and a cafeteria plan. Executive shall also be entitled to participate in any other benefit
plans and perquisites that are typically provided to employees of ServisFirst.
	 
	 	 	(b) ServisFirst and Executive acknowledge and agree that they have entered into a Stock
Incentive Agreement with a grant date of April 20, 2006. The Stock Incentive Agreement
grants options to Executive in accordance with a Vesting Schedule as set forth therein.
ServisFirst and Executive agree that nothing contained in the Stock Incentive Agreement
creates a guarantee of employment or a contract of employment beyond the dates set forth
herein, and nothing contained in the Stock Incentive Agreement alters the terms set forth
herein. The Stock Incentive Agreement constitutes an agreement to vest options in Executive
only if Executive is employed by ServisFirst on the dates set forth in the Vesting
Schedule.

	 	4	 	TERMINATION OF EMPLOYMENT

	 	a.	 	For Cause by ServisFirst. The Employment Term and the
Executive’s employment hereunder may be terminated by ServisFirst for “Cause.”
For purposes of the Agreement, “Cause” shall mean any of the following: (i)
the Executive’s indictment in connection with a felony, (ii) the Executive’s
indictment in connection with any crime whether a felony or misdemeanor,
involving the purchase or sale of any security, mail or wire fraud, theft,
embezzlement, moral turpitude or misappropriation of Company property, (iii)
the Executive’s willful or gross neglect of his duties hereunder, (iv) the
Executive’s willful misconduct in connection with the performance of his
duties hereunder, (v) a material breach by the Executive of ServisFirst’s Code
of Ethics, or (vi) the suspension or removal of the Executive by any bank or
securities regulator or such regulatory agency.
	 
	 	 	 	Upon the date of termination of the Executive’s employment (i.e., the
“Expiration Date”) for Cause pursuant to this Section 4(a), this Agreement
and all compensation and benefits it provides shall end and be of no
further force and effect. All other benefits, if any, due the Executive
following the Executive’s termination of employment pursuant to this
Section 4(a) shall be determined in accordance with the plans, policies,
and practices of ServisFirst
	 
	 	b.	 	Disability or Death. The Employment Term and the Executive’s
employment hereunder shall terminate upon his death. Due to the

2

 

	 	 	 	unique nature of Executive’s responsibilities, ServisFirst may terminate
the Executive’s employment if he becomes physically or mentally
incapacitated and is therefore unable to perform his duties for an
aggregate period of 120 working days in any consecutive twelve (12) month
period (such incapacity is hereinafter referred to as “Disability”). Any
question as to the existence of the Disability of the Executive as to
which the Executive and ServisFirst cannot agree shall be determined in
writing by a qualified independent physician mutually acceptable to the
Executive and ServisFirst. If the Executive and ServisFirst cannot agree
as to a qualified independent physician, each shall appoint such a
physician and those two physicians shall select a third who shall make
such determination in writing. The determination of Disability made in
writing to ServisFirst and the Executive shall be final and conclusive for
all purposes of this Agreement. The date of termination shall be the date
of such determination of disability.
	 
	 	 	 	Upon the date of termination of the Executive’s employment hereunder for
either Disability or death (i.e., the “Expiration Date”), this Agreement
and all compensation and benefits it provides shall end and be of no
further force or effect. All other benefits, if any, due to the Executive
following termination pursuant to this Section 4(b) shall be determined in
accordance with the plans, policies and practices of ServisFirst;
provided, however, that the Executive or his estate shall not participate
in any other severance plan, policy or program of ServisFirst.
	 
	 	c.	 	Termination by ServisFirst without Cause.
	 
	 	 	 	(i) Executive’s employment may be terminated without “cause” by providing
notice of termination as set forth in Section 17 of this Agreement. The
date of termination shall be the date that Executive receives such notice.
Upon the date of termination of Executive’s employment by ServisFirst
without “Cause” (i.e., the “Expiration Date”) (other than by reason of his
Disability or death), the Executive shall be entitled to continue to
receive cash payments equal to the total base salary that would otherwise
be paid to Executive for the remainder of the applicable Employment Term
(either Employment Term 1 or Employment Term 2) or twelve (12) months base
salary, whichever is greater, and all other current cash obligations of
ServisFirst to the Executive (e.g. unused vacation). The cash payments
described herein shall be determined based on the base salary paid to
Executive by ServisFirst at the time that notice of the termination
without “Cause” is given. Such cash payments shall be paid every two
weeks. Upon Executive’s termination by ServisFirst without cause,

3

 

	 	 	 	Executive will no longer be entitled to any other compensation or benefits
set forth in Section 3(a), including other perquisites provided to
employees of ServisFirst. All other benefits, if any, due the Executive
following termination pursuant to this Section 4(c) shall be determined in
accordance with the plans, policies, and practices of ServisFirst;
provided, however, that the Executive shall not participate in any other
severance plan, policy or program of ServisFirst.
	 
	 	 	 	(ii) If Executive is terminated without “cause”, and, if upon the
Expiration Date, Executive and/or ServisFirst has satisfied such
performance goals as would entitle Executive to incentive based
compensation, ServisFirst will pay Executive 50% of the incentive based
compensation earned at the Expiration Date.
	 
	 	d.	 	Voluntary ‘Termination by the Executive. Executive
may terminate this Agreement at any time by providing notice as set forth in
Section 17 of this Agreement. The date of termination shall be the date that
ServisFirst receives such notice. Upon the date of voluntary termination of
Executive’s employment with ServisFirst, (i.e., the “Expiration Date”), this
Agreement, and all compensation and benefits it provides, shall end and be of
no further force and effect. All other benefits, if any, due the Executive
following his termination pursuant to this Section 4(d) shall be determined in
accordance with the plans, policies and practices of ServisFirst; provided,
however, that the Executive shall not participate in any severance plan,
policy or program of ServisFirst.

	5.	 	NON-DISCLOSURE OF CONFIDENTIAL FORMATION. The Executive agrees that, during his employment by
ServisFirst and at all times thereafter, he shall hold in a fiduciary capacity for the benefit
of ServisFirst, all secret or confidential information (as defined under Alabama law)
knowledge or data relating to ServisFirst or any of its subsidiaries or affiliates, and their
respective businesses, which shall have been obtained by the Executive during the executive’s
employment by ServisFirst, or an affiliate or subsidiary thereof or performing any services
pursuant to this Agreement after his termination of employment, and which shall not be or
become public knowledge (other than by acts by the Executive or representatives of the
Executive in violation of this Agreement). Except in the good faith performance of his duties
for ServisFirst, the Executive shall not, without the prior written consent of ServisFirst or
as may otherwise be required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than ServisFirst and those designated by it.
Executive shall at all times while employed by ServisFirst adhere to and comply with
ServisFirst’s Code of Ethics and its conflicts of interest provisions. This obligation, as set
forth in this paragraph, shall be binding

4

 

	 	 	upon Executive and shall inure to the benefit of ServisFirst, following any termination or
expiration of this Agreement.
	 
	6.	 	NON-SOLICITATION. As a material inducement to ServisFirst to enter into this Agreement and
to employ Executive, Executive covenants and agrees that for a period of twelve (12) months
following the Expiration Date of this Agreement, or for a period of twelve (12) months
following the final payment to Executive following the termination of Executive’s employment,
whichever is later, the Executive shall not solicit any individual who is employed by
ServisFirst or its subsidiaries or affiliates (or who was so employed within 180 days prior to
the Expiration Date, or the date of the last payment to Executive) within the State of Alabama
to terminate or refrain from renewing or extending such employment or to become employed by or
become a consultant to any other individual or entity other than ServisFirst or its
subsidiaries or affiliates, and the Executive shall not initiate discussion with any such
employee for any such purpose or authorize or knowingly cooperate with the taking of any such
actions by any other individual or entity on behalf of the Executive’s employer, or otherwise.
	 
	7.	 	REASONABLENESS OF RESTRICTIONS. Executive has carefully read and considered the provisions of
Section 5 and Section 6 hereof and, having done so, agrees that the restrictions set forth in
such paragraphs are fair and reasonable and that they are reasonably required for the
protection of the interests of ServisFirst, its shareholders, officers, directors, and other
employees. It is the belief of the parties hereto that the best protection that can be
afforded ServisFirst, which does not in any way infringe upon Executive’s right to engage in
any unrelated business or ability to find gainful work in his field, is to provide for the
restrictions described in Section 5 and Section 6. The covenants set forth in the multiple
parts of Section 5 and Section 6 are covenants for which valuable consideration has been paid,
the receipt, adequacy, and sufficiency of which are acknowledged by Executive, and have also
been made by Executive to induce ServisFirst to enter into this Agreement. Each of the
aforesaid covenants may be availed of or relied upon by ServisFirst in any court of competent
jurisdiction, and shall form the basis for injunctive relief and damages. Attorney’s fees may
be awarded to the prevailing party in any action taken on the basis of any breach of the
aforesaid covenants by Executive.
	 
	8.	 	EQUITABLE REMEDIES. The Executive acknowledges that in accordance with this Agreement, he
will perform services which directly affect the business of ServisFirst and that ServisFirst
will be irreparably injured by a violation of Section 5 or Section 6 of this Agreement. There
being no adequate remedy at law to protect the interests of ServisFirst, the Executive agrees
that in addition to any other remedies available to it for such breach or threatened breach of
the covenants and agreements herein, ServisFirst shall be entitled to a preliminary
in-junction, temporary restraining order, or other equivalent relief, restraining the
Executive from any actual or threatened breach of Section 5 and/or Section 6. If a bond is
required to be posted in order for ServisFirst to secure an injunction or

5

 

	 	 	other equitable remedy, the parties agree that said bond need not be more than a nominal
sum. The foregoing remedy shall be in addition to, and not in limitation of, any other
rights or remedies to which ServisFirst is or may be entitled at law or in equity. In the
event of such breach, ServisFirst shall not be obligated to make the payments or provide
any benefits otherwise due and payable under this Agreement.
	 
	9.	 	ASSISTANCE WITH CLAIMS. Executive agrees that, consistent with the Executive’s business and
personal affairs, during and after his employment by ServisFirst, he will assist ServisFirst
and its subsidiaries and affiliates in the defense of any claims, or potential claims that may
be made or threatened to be made against any of them in any action, suit or proceeding,
whether civil, criminal, administrative or investigative (a “Proceeding”), and will assist
ServisFirst and its affiliates in the prosecution of any claims that may be made by
ServisFirst or any subsidiary or affiliate in any Proceeding, to the extent that such claims
may relate to the Executive’s employment or the period of Executive’s employment by
ServisFirst. Executive agrees, unless precluded by law, to promptly inform ServisFirst if
Executive is asked to participate (or otherwise become involved) in any Proceeding involving
such claims or potential claims. Executive also agrees, unless precluded by law, to promptly
inform ServisFirst if Executive is asked to assist in any investigation (whether governmental
or private) of ServisFirst or any subsidiary or affiliate (or their actions), regardless of
whether a lawsuit has then been filed against ServisFirst or any subsidiary or affiliate with
respect to such investigation. ServisFirst agrees to reimburse Executive for all of
Executive’s reasonable out-of-pocket expenses associated with such assistance, including
travel expenses and any attorneys’ fees deemed necessary by ServisFirst, which retains sole
discretion to determine the necessity of such fees, and shall pay a reasonable per diem fee
for Executive’s services if such action occurs after the Expiration Date.
	 
	10.	 	MUTUAL NON-DISPARAGEMENT. Each party agrees that, following the Expiration Date, neither
party will make any public statements which disparage the other party. Notwithstanding the
foregoing, nothing shall prohibit any person from making truthful statements when required by
order of a court or other body having jurisdiction over that person.
	 
	11.	 	ASSIGNABILITY AND BINDING NATURE. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, personal representatives (in the
case of the Executive), successors and assigns. No rights or obligations of ServisFirst under
this Agreement may be assigned or transferred by ServisFirst except that such rights or
obligations may be assigned or transferred pursuant to a merger or consolidation in which
ServisFirst is not the continuing entity, or the sale or liquidation of all or substantially
all of the assets of ServisFirst, provided that the assignee or transferee is the successor to
all or substantially all of the assets of ServisFirst, as contained in this Agreement, either
contractually or as a matter of law. No rights

6

 

	 	 	or obligations of the Executive under this Agreement may be assigned or transferred by the
Executive other than his rights to compensation and benefits, which may be transferred only
by will or operation of law.
	 
	12.	 	AMENDMENT. This Agreement may be amended or cancelled only by mutual agreement of the
parties in writing. In the event of the Executive’s Disability so as to render him incapable
of such action, his legal representative may be substituted for purposes of such amendment.
	 
	13.	 	APPLICABLE LAW. The provisions of this Agreement shall be considered in accordance with the
laws of the State of Alabama, without regard to the conflict of law provisions of any state.
	 
	14.	 	SEVERABILITY. The invalidity or unenforceability of any provision of this Agreement will not
affect the validity or enforceability of any other provision of this Agreement and this
Agreement will be construed as if such invalid and unenforceable provision were omitted (but
only to the extent that such provision cannot be appropriately reformed or modified).
	 
	15.	 	WAIVER OF BREACH. No waiver by any party hereto of a breach of any provision of this
Agreement by any other party, or of compliance with any condition or provision of this
Agreement to be performed by such other party, will operate or be construed as a waiver of any
subsequent breach by such other party of any similar or dissimilar provisions and conditions
at the same or any prior or subsequent time. The failure of any party hereto to take any
action by reason of such breach will not deprive such party of the right to take action at any
time while such breach continues.
	 
	16.	 	COMPLIANCE WITH LAW. Notwithstanding any provision contained in this Agreement to the
contrary, in the event the Securities and Exchange Commission, the FDIC, the Office of the
Comptroller of the Currency, the Federal Reserve Board, the Alabama Banking Department, or any
other regulatory authority, commences an appropriate proceeding, action or order challenging
the payment to Executive of any benefit hereunder, or in the event any such payment hereunder
is otherwise prohibited by law, such benefit payment shall be suspended until such time as the
challenge is fully and finally resolved and the applicable regulatory authority does not
object to the payments or until such payments are otherwise permitted by law. In the event
that any challenge to the payments required by this Agreement is initiated by a regulatory
authority or other person, ServisFirst shall notify Executive of such challenge and shall
promptly proceed in good faith to attempt to resolve such challenge in a manner that enables
ServisFirst to make to Executive all payments required hereunder.
	 
	17.	 	NOTICES. Notices and all other communications provided for in this Agreement shall
be in writing and shall be delivered personally or sent by registered mail, return receipt
requested, postage prepaid, or prepaid overnight

7

 

	 	 	courier to the parties at the addresses set forth below (or such other addresses as shall
be specified by the parties by like notice):

to ServisFirst:

ServisFirst Bank

ATTN: President

P.O. Box 1 SO8

Birmingham, Alabama 35201-1508

With a copy to:

Miller, Hamilton, Snider Odom, L.L.C.

505 20th Street North, Suite 1200

Birmingham, Alabama 35203

Attention: James A. Patton, Jr.

Facsimile: (205) 226-5226

or to the Executive

Mr. Andy Kattos

304 Mountainwood Circle, SE

Huntsville, Alabama 35801

Each party, by written notice furnished to the other party, may modify the applicable delivery
address, except that notice of change of address shall be effective only upon receipt. Such
notices, demands, claims and other communications shall be deemed given in the case of delivery by
overnight service with guaranteed next day delivery, the next day or the day designated for
delivery; or in the case of certified or registered U.S. mail, five days after deposit in the U.S.
mail; provided, however, that in no event shall any such communications be deemed to be given later
than the date they are actually received.

	18.	 	SURVIVORSHIP. Upon the expiration or other termination of this Agreement, the respective
rights and obligations of the parties hereto shall survive such expiration or other
termination to the extent necessary to carry out the intentions of the parties under this
Agreement.
	 
	19.	 	ENTIRE AGREEMENT. Except as otherwise noted herein, this Agreement constitutes the entire
agreement between the parties concerning the subject matter hereof and supersedes all prior
and contemporaneous agreements, if any, between the parties relating to the subject matter
hereof.
	 
	20.	 	INTERPRETATION. No provision of the Agreement is to be interpreted for or against any party
because that party or that party’s legal representative drafted such provision.

8

 

	21.	 	COUNTERPARTS. This Agreement may be executed in separate counterparts, each of which is
deemed to be an original and all of which taken together constitute one and the same
agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

9

 

IN WITNESS THEREOF, the Executive has hereunto set his hand, and ServisFirst has caused these
presents to be executed in its name and on its behalf, and its corporate seal to be hereunto
affixed, all as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	[SEAL]

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	EXECUTIVE:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	/s/ Andy Kattos	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Andy Kattos	 	 
	/s/ William M. Foshee
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	[SEAL]
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SERVISFIRST:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Thomas A. Broughton III	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Thomas A. Broughton III	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ William M. Foshee	 	 	 	Its: President	 	 
	 

Witness

	 	 	 	 	 	 	 	 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]