Document:

EX-10.1 2005 AMENDED AND RESTATED STOCK INCENTIVE

 

Exhibit 10.1

SERVISFIRST BANCSHARES, INC.

AMENDED AND RESTATED

2005 STOCK INCENTIVE PLAN

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1: DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	2	 
	 
	 	 	 	 
	SECTION 2: THE STOCK INCENTIVE PLAN
	 	 	6	 
	 
	 	 	 	 
	2.1 Purpose of the Plan
	 	 	6	 
	2.2 Stock Subject to the Plan
	 	 	6	 
	2.3 Administration of the Plan
	 	 	6	 
	2.4 Eligibility and Limit
	 	 	6	 
	 
	 	 	 	 
	SECTION 3: TERMS OF STOCK INCENTIVES
	 	 	7	 
	 
	 	 	 	 
	3.1 General Terms and Conditions
	 	 	7	 
	3.2 Terms and Conditions of Options
	 	 	8	 
	3.3 Treatment of Awards Upon Termination of Service
	 	 	10	 
	 
	 	 	 	 
	SECTION 4: RESTRICTIONS ON STOCK
	 	 	10	 
	 
	 	 	 	 
	4.1 Escrow of Shares
	 	 	10	 
	4.2 Restrictions on Transfer
	 	 	10	 
	 
	 	 	 	 
	SECTION 5: GENERAL PROVISIONS
	 	 	10	 
	 
	 	 	 	 
	5.1 Withholding
	 	 	10	 
	5.2 Changes in Capitalization; Merger; Liquidation
	 	 	11	 
	5.3 Cash Awards
	 	 	12	 
	5.4 Compliance with Code
	 	 	12	 
	5.5 Right to Terminate Service
	 	 	12	 
	5.6 Restrictions on Delivery and Sale of Shares Legends
	 	 	12	 
	5.7 Non-Alienation of Benefits
	 	 	13	 
	5.8 Termination and Amendment of the Plan
	 	 	13	 
	5.9 Stockholder Approval
	 	 	13	 
	5.10 Choice of Law
	 	 	13	 
	5.11 Effective Date of the Plan
	 	 	13	 

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SERVISFIRST BANCSHARES, INC.

AMENDED AND RESTATED

2005 STOCK INCENTIVE PLAN

SECTION 1: DEFINITIONS

     1.1 Definitions. Whenever used herein, the masculine pronoun shall be deemed to
include the feminine, and the singular to include the plural, unless the context clearly indicates
otherwise, and the following capitalized words and phrases are used herein with the meaning
thereafter ascribed:

          (a) “Affiliate” means

     (1) any Subsidiary or Parent;

     (2) an entity that directly or through one or more intermediaries controls, is
controlled by, or is under common control with the Company, as determined by the
Company; or

     (3) any entity in which the Company has such a significant interest that the
Company determines it should be deemed an “Affiliate,” as determined in the sole
discretion of the Company.

     (b) “Company” means ServisFirst Bancshares, Inc., a corporation organized under
the laws of the state of Delaware, which assumed the Plan on November 29, 2007 by that
certain Plan of Reorganization and Agreement of Merger dated August 29, 2007.

     (c) “Board of Directors” means the board of directors of the Company.

     (d) “Cause” has the same meaning as provided in the employment agreement
between the Participant and the Company or Affiliate(s) on the date of Termination of
Service, or if no such definition or employment agreement exists, “Cause” means conduct
amounting to

     (1) fraud or dishonesty against the Company or Affiliate(s);

     (2) Participant’s willful misconduct, repeated refusal to follow the reasonable
directions of the Board of Directors or knowing violation of law in the course of
performance of the duties of Participant’s service with the Company or Affiliate(s);

     (3) repeated absences from work without a reasonable excuse;

     (4) repeated intoxication with alcohol or drugs while on the Company’s or
Affiliate(s)’ premises during regular business hours; (5) a conviction or plea of
guilty or nolo contendere to a felony or a crime involving

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dishonesty; or (6) a breach or violation of the terms of any agreement to which
Participant and the Company or Affiliate(s) are party.

     (e) “Change in Control” shall, unless otherwise provided by the Committee in a
Stock Incentive Agreement, have the same meaning as provided in the employment agreement
between the Participant and the Company or Affiliate(s), or if no such definition or
employment agreement exists, “Change in Control” shall mean any one of the following events
which may occur after the date the Stock Incentive is granted:

     (1) the
acquisition by any individual, entity or “group,” within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934, as
amended, (a “Person”) of beneficial ownership (within the meaning of Rule 13-d-3
promulgated under the Securities Exchange Act of 1934) of voting securities of the
Company where such acquisition causes any such Person to own fifty percent (50%) or
more of the combined voting power of the then outstanding voting securities entitled
to vote generally in the election of directors;

     (2) a reorganization, merger or consolidation, with respect to which persons
who were the stockholders of the Company immediately prior to such reorganization,
merger or consolidation do not, immediately thereafter, own more than fifty percent
(50%) of the combined voting power entitled to vote in the election of directors of
the reorganized, merged or consolidated Company’s then outstanding voting
securities; or

     (3) the sale, transfer or assignment of all or substantially all of the assets
of the Company to any third party.

     (f) “Code” means the Internal Revenue Code of 1986, as amended.

     (g) “Committee” means the committee appointed by the Board of Directors to
administer the Plan pursuant to Plan Section 2.3. If the Committee has not been appointed,
the Board of Directors in its entirety shall constitute the Committee.

     (h) “Disability” has the same meaning as provided in the long-term disability
plan or policy maintained or, if applicable, most recently maintained, by the Company or an
Affiliate for the Participant. If no long-term disability plan or policy was ever maintained
on behalf of the Participant or, if the determination of Disability relates to an Incentive
Stock Option, Disability shall mean that condition described in Code Section 22(e)(3), as
amended from time to time. In the event of a dispute, the determination of Disability shall
be made by the Board of Directors and shall be supported by advice of a physician competent
in the area to which such Disability relates.

     (i) “Disposition” means any conveyance, sale, transfer, assignment, pledge or
hypothecation, whether outright or as security, inter vivos or testamentary, with or without
consideration, voluntary or involuntary.

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     (j) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (k) “Fair Market Value” with regard to a date means:

     (1) the price at which Stock shall have been sold on that date or the last
trading date prior to that date as reported by the national securities exchange
selected by the Committee on which the shares of Stock are then actively traded or,
if applicable, as reported by the NASDAQ Stock Market;

     (2) if such market information is not published on a regular basis, the price
of Stock in the over-the-counter market on that date or the last business day prior
to that date as reported by the NASDAQ Stock Market or, if not so reported, by a
generally accepted reporting service; or

     (3) if Stock is not publicly traded, as determined in good faith by the
Committee with due consideration being given to (i) the most recent independent
appraisal of the Company, if such appraisal is not more than twelve (12) months old
and (ii) the valuation methodology used in any such appraisal.

For purposes of Paragraphs (1), (2) and (3) above, the Committee may use the closing price
as of the applicable date or the average of the high and low prices as of the applicable
date for a period certain ending on such date, the price determined at the time the
transaction is processed, the tender offer price for shares of Stock, or any other method
which the Committee determines is reasonably indicative of the fair market value.

     (l) “Incentive Stock Option” means an incentive stock option, as defined in
Code Section 422, described in Plan Section 3.2.

     (m) “Non-qualified Stock Option” means a stock option, other than an option
qualifying as an Incentive Stock Option, described in Plan Section 3.2.

     (n) “Option” means a Non-qualified Stock Option or an Incentive Stock Option.

     (o) “Over 10% Owner” means an individual who at the time an Incentive Stock
Option is granted owns Stock possessing more than ten percent (10%) of the total combined
voting power of the Company or one of its Parents or Subsidiaries, determined by applying
the attribution rules of Code Section 424(d).

     (p) “Parent” means any corporation (other than the Company) in an unbroken
chain of corporations ending with the Company if, with respect to Incentive Stock Options,
at the time of granting of the Incentive Stock Option, each of the corporations other than
the Company owns stock possessing fifty percent (50%) or more of the total combined voting
power of all classes of stock in one of the other corporations in the chain.

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     (q) “Participant” means an individual who receives a Stock Incentive hereunder.

     (r) “Plan” means this ServisFirst Bancshares, Inc. Amended and Restated 2005
Stock Incentive Plan, formerly known as the ServisFirst Bank 2005 Stock Incentive Plan.

     (s) “Stock” means the Company’s $.001 par value common stock.

     (t) “Stock Incentive Agreement” means an agreement between the Company, or
ServisFirst Bank if prior to November 29, 2007, the effective date of the Plan of
Reorganization and Agreement of Merger, and a Participant or other documentation evidencing
an award of a Stock Incentive.

     (u) “Stock Incentives” means, collectively, Incentive Stock Options and Non-
qualified Stock Options.

     (v) “Subsidiary” means any corporation (other than the Company) in an unbroken
chain of corporations beginning with the Company if, with respect to Incentive Stock
Options, at the time of the granting of the Incentive Stock Option, each of the corporations
other than the last corporation in the unbroken chain owns stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one of the other
corporations in the chain. A “Subsidiary” shall include any entity other than a corporation
to the extent permissible under Section 424(f) or regulations or rulings thereunder.

     (w) “Termination of Service” means the termination of the service relationship,
whether employment or otherwise, between a Participant and the Company and any Affiliates,
regardless of the fact that severance or similar payments are made to the Participant for
any reason, including, but not by way of limitation, a termination by resignation,
discharge, death, Disability or retirement. The Committee shall, in its absolute discretion,
determine the effect of all matters and questions relating to a Termination of Service,
including, but not by way of limitation, the question of whether a leave of absence
constitutes a Termination of Service, or whether a Termination of Service is for Cause.

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SECTION 2: THE STOCK INCENTIVE PLAN

     2.1 Purpose of the Plan. The Plan is intended to (a) provide incentives to officers,
employees and directors of the Company and its Affiliates to stimulate their efforts toward the
continued success of the Company and to operate and manage the business in a manner that will
provide for the long-term growth and profitability of the Company; (b) encourage stock ownership by
officers, employees and directors by providing them with a means to acquire a proprietary interest
in the Company by acquiring shares of Stock; and (c) provide a means of obtaining and rewarding key
personnel.

     2.2 Stock Subject to the Plan. Subject to adjustment in accordance with Section 5.2,
1,025,000 shares of Stock (the “Maximum Plan Shares”) are hereby reserved exclusively for issuance
upon exercise or payment pursuant to Stock Incentives. All or any portion of the Maximum Plan
Shares may be issued upon the exercise of Incentive Stock Options. The shares of Stock attributable
to the nonvested, unpaid, unexercised, unconverted or otherwise unsettled portion of any Stock
Incentive that is forfeited or cancelled or expires or terminates for any reason without becoming
vested, paid, exercised, converted or otherwise settled in full will again be available for
purposes of the Plan.

     2.3 Administration of the Plan. The Plan shall be administered by the Committee. The
Committee shall have full authority in its discretion to determine the officers, employees and
directors of the Company or its Affiliates to whom Stock Incentives shall be granted and the terms
and provisions of Stock Incentives subject to the Plan. Subject to the provisions of the Plan, the
Committee shall have full and conclusive authority to interpret the Plan; to prescribe, amend and
rescind rules and regulations relating to the Plan; to determine the terms and provisions of the
respective Stock Incentive Agreements and to make all other determinations necessary or advisable
for the proper administration of the Plan. The Committee’s determinations under the Plan need not
be uniform and may be made by it selectively among persons who receive, or are eligible to receive,
awards under the Plan (whether or not such persons are similarly situated). The Committee’s
decisions shall be final and binding on all Participants. Each member of the Committee shall serve
at the discretion of the Board of Directors and the Board of Directors may from time to time remove
members from or add members to the Committee. Vacancies on the Committee shall be filled by the
Board of Directors.

     The Committee shall select one of its members as chairman and shall hold meetings at the times
and in the places as it may deem advisable. Acts approved by a majority of the Committee in a
meeting at which a quorum is present, or acts reduced to or approved in writing by a majority of
the members of the Committee, shall be the valid acts of the Committee.

     2.4 Eligibility and Limit. Stock Incentives may be granted only to officers,
employees and directors of the Company or any Affiliate; provided, however, that an Incentive Stock
Option may only be granted to an employee of the Company or any Subsidiary. In the case of
Incentive Stock Options, the aggregate Fair Market Value (determined as of the date an Incentive
Stock Option is granted) of stock with respect to which stock options intended to meet the
requirements of Code Section 422 become exercisable for the first time by an individual during any
calendar year under all plans of the Company and its Parents and Subsidiaries shall not exceed
$100,000; provided further, that if the limitation is exceeded, the Incentive Stock

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Option(s) which cause the limitation to be exceeded shall be treated as Non-qualified Stock
Option(s). If, after grant, the exercise price of an Option is reduced, the transaction shall be
treated as the cancellation of the Option and the grant of a new Option. If an Option is deemed to
be cancelled as described in the preceding sentence, the Option that is deemed to be cancelled and
the Option that is deemed to be granted shall both be counted against the Maximum Plan Shares and
the maximum number of shares for which Options may be granted to an employee during any calendar
year.

SECTION 3: TERMS OF STOCK INCENTIVES

     3.1 General Terms and Conditions.

     (a) The number of shares of Stock as to which a Stock Incentive shall be granted shall
be determined by the Committee in its sole discretion, subject to the provisions of Section
2.2, as to the total number of shares available for grants under the Plan. If a Stock
Incentive Agreement so provides, a Participant may be granted a new Option to purchase a
number of shares of Stock equal to the number of previously owned shares of Stock tendered
in payment of the Exercise Price (as defined below) for each share of Stock purchased
pursuant to the terms of the Stock Incentive Agreement.

     (b) Each Stock Incentive shall be evidenced by a Stock Incentive Agreement in such form
and containing such terms, conditions and restrictions as the Committee may determine is
appropriate. Each Stock Incentive Agreement shall be subject to the terms of the Plan and
any provision in a Stock Incentive Agreement that is inconsistent with the Plan shall be
null and void.

     (c) The date a Stock Incentive is granted shall be the date on which the Committee has
approved the terms of, and satisfaction of any conditions applicable to, the grant of the
Stock Incentive and has determined the recipient of the Stock
Incentive and the number of shares covered by the Stock Incentive and has taken all such other action necessary to
complete the grant of the Stock Incentive.

     (d) The Committee may provide in any Stock Incentive Agreement (or subsequent to the
award of a Stock Incentive but prior to its expiration or cancellation, as the case may be)
that, in the event of a Change in Control, the Stock Incentive shall or may be cashed out on
the basis of any price not greater than the highest price paid for a share of Stock in any
transaction reported by any market or system selected by the Committee on which the shares
of Stock are then actively traded during a specified period immediately preceding or
including the date of the Change in Control or offered for a share of Stock in any tender
offer occurring during a specified period immediately preceding or including the date the
tender offer commences; provided that, in no case shall any such specified period exceed
three (3) months (the “Change in Control Price”). For purposes of this Subsection, any
Option shall be cashed out on the basis of the excess, if any, of the Change in Control
Price over the Exercise Price to the extent the Option is then exercisable in accordance
with the terms of the Option and the Plan.

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     (e) Any Stock Incentive may be granted in connection with all or any portion of a
previously or contemporaneously granted Stock Incentive. Exercise or vesting of a Stock
Incentive granted in connection with another Stock Incentive may result in a pro rata
surrender or cancellation of any related Stock Incentive, as specified in the applicable
Stock Incentive Agreement.

     (f) Stock Incentives shall not be transferable or assignable except by will or by the
laws of descent and distribution and shall be exercisable, during the Participant’s
lifetime, only by the Participant; in the event of the Disability of the Participant, by the
legal representative of the Participant; or in the event of the death of the Participant, by
the personal representative of the Participant’s estate or if no personal representative has
been appointed, by the successor in interest determined under the Participant’s will.

     3.2 Terms and Conditions of Options. Each Option granted under the Plan shall be
evidenced by a Stock Incentive Agreement. At the time any Option is granted, the Committee shall
determine whether the Option is to be an Incentive Stock Option or a Non-qualified Stock Option,
and the Option shall be clearly identified as to its status as an Incentive Stock Option or a
Non-qualified Stock Option. At the time any Incentive Stock Option is exercised, the Company shall
be entitled to place a legend on the certificates representing the shares of Stock purchased
pursuant to the Option to clearly identify them as shares of Stock purchased upon exercise of an
Incentive Stock Option. An Incentive Stock Option may only be granted within ten (10) years from
the earlier of the date the Plan is adopted by the Board of Directors or approved by the Company’s
stockholders. All Options shall provide that the primary federal regulator of the Company may
require a Participant to exercise the vested portion of the Option in whole or in part if the
capital of the Company falls below minimum requirements and shall further provide that, if the
Participant fails to so exercise any such portion of the Option, that portion of the Option shall
be forfeited.

     (a) Option Price. Subject to adjustment in accordance with Section 5.2 and the
other provisions of this Section 3.2, the exercise price (the “Exercise Price”) per share of
Stock purchasable under any Option shall be as set forth in the applicable Stock Incentive
Agreement. With respect to each grant of an Incentive Stock Option to a Participant who is
not an Over 10% Owner, the Exercise Price per share shall not be less than the Fair Market
Value on the date the Option is granted. With respect to each grant of an Incentive Stock
Option to a Participant who is an Over 10% Owner, the Exercise Price shall not be less than
one hundred ten percent (110%) of the Fair Market Value on the date the Option is granted.
With respect to each grant of a Non-qualified Stock Option, the Exercise Price per share
shall be no less than the Fair Market Value.

     (b) Option Term. The term of an Option shall be as specified in the applicable
Stock Incentive Agreement; provided, however, that any Option granted to a Participant shall
not be exercisable after the expiration of ten (10) years after the date the Option is
granted and any Incentive Stock Option granted to an Over 10% Owner shall not be exercisable
after the expiration of five (5) years after the date the Option is granted.

     (c) Payment. Payment for all shares of Stock purchased pursuant to the exercise
of an Option shall be made in cash or, if the Stock Incentive Agreement

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provides, in a cashless exercise through a broker. In its discretion, the Committee
also may authorize (at the time an Option is granted or thereafter) Company financing to
assist the Participant as to payment of the Exercise Price on such terms as may be offered
by the Committee in its discretion. Payment shall be made at the time that the Option or any
part thereof is exercised, and no shares shall be issued or delivered upon exercise of an
Option until full payment has been made by the Participant. The holder of an Option, as
such, shall have none of the rights of a stockholder.

     (d) Conditions to the Exercise of an Option. Each Option granted under the Plan
shall be exercisable by the Participant or any other designated person, at such time or
times, or upon the occurrence of such event or events, and in such amounts, as the Committee
shall specify in the Stock Incentive Agreement; provided, however, that subsequent to the
grant of an Option, the Committee, at any time before complete termination of such Option,
may accelerate the time or times at which such Option may be exercised in whole or in part,
including, without limitation, upon a Change in Control and may permit the Participant or
any other designated person to exercise the Option, or any portion thereof, for all or part
of the remaining Option term notwithstanding any provision of the Stock Incentive Agreement
to the contrary. Notwithstanding the foregoing, Options granted under the Plan shall not
contain provisions which allow the Option to become vested and exercisable at a rate faster
than in equal annual one-third (1/3) increments over the period measured from the date the
Company opens for business.

     (e) Termination of Incentive Stock Option Status. With respect to an Incentive
Stock Option, in the event of the Termination of Service of a Participant, the Option or
portion thereof held by the Participant which is unexercised shall expire, terminate and
become unexercisable no later than three (3) months after the date of Termination of
Service; provided, however, that in the case of a holder whose Termination of Service is due
to death or Disability, up to one (1) year may be substituted for such three-month period.
For purposes of this Subsection (e), Termination of Service of the Participant shall not be
deemed to have occurred if the Participant is employed by another corporation (or a parent
or subsidiary corporation of such other corporation) which has assumed the Incentive Stock
Option of the Participant in a transaction to which Code Section 424(a) is applicable.

     (f) Special Provisions for Certain Substitute Options. Notwithstanding anything
to the contrary in this Section 3.2, any Option issued in substitution for an option
previously issued by another entity, which substitution occurs in connection with a
transaction to which Code Section 424(a) is applicable, may provide for an exercise price
computed in accordance with such Code Section and the regulations thereunder and may contain
such other terms and conditions as the Committee may prescribe to cause such substitute
Option to contain as nearly as possible the same terms and conditions (including the
applicable vesting and termination provisions) as those contained in the previously issued
option being replaced thereby.

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     3.3 Treatment of Awards Upon Termination of Service. Except as otherwise provided by
Plan Section 3.2(e), any award under this Plan to a Participant who suffers a Termination of
Service may be cancelled, accelerated, paid or continued, as provided in the Stock Incentive
Agreement or, in the absence of such provision, as the Committee may determine. The portion of any
award exercisable in the event of continuation or the amount of any payment due under a continued
award may be adjusted by the Committee to reflect the Participant’s period of service from the date
of grant through the date of the Participant’s Termination of Service or such other factors as the
Committee determines are relevant to its decision to continue the award.

SECTION 4: RESTRICTIONS ON STOCK

     4.1 Escrow of Shares. Any certificates representing the shares of Stock issued under
the Plan shall be issued in the Participant’s name, but, if the Stock Incentive Agreement so
provides, the shares of Stock shall be held by a custodian designated by the Committee (the
“Custodian”). Each applicable Stock Incentive Agreement providing for transfer of shares of Stock
to the Custodian shall appoint the Custodian as the attorney-in-fact for the Participant for the
term specified in the applicable Stock Incentive Agreement, with full power and authority in the
Participant’s name, place and stead to transfer, assign and convey to the Company any shares of
Stock held by the Custodian for such Participant, if the Participant forfeits the shares under the
terms of the applicable Stock Incentive Agreement. During the period that the Custodian holds the
shares subject to this Section, the Participant shall be entitled to all rights, except as provided
in the applicable Stock Incentive Agreement, applicable to shares of Stock not so held. Any
dividends declared on shares of Stock held by the Custodian shall, as the Committee may provide in
the applicable Stock Incentive Agreement, be paid directly to the Participant or, in the
alternative, be retained by the Custodian until the expiration of the term specified in the
applicable Stock Incentive Agreement and shall then be delivered, together with any proceeds, with
the shares of Stock to the Participant or to the Company, as applicable.

     4.2 Restrictions on Transfer. The Participant shall not have the right to make or
permit to exist any Disposition of the shares of Stock issued pursuant to the Plan except as
provided in the Plan or the applicable Stock Incentive Agreement. Any Disposition of the shares of
Stock issued under the Plan by the Participant not made in accordance with the Plan or the
applicable Stock Incentive Agreement shall be void. The Company shall not recognize, or have the
duty to recognize, any Disposition not made in accordance with the Plan and the applicable Stock
Incentive Agreement, and the shares so transferred shall continue to be bound by the Plan and the
applicable Stock Incentive Agreement.

SECTION 5: GENERAL PROVISIONS

     5.1 Withholding. The Company shall deduct from all cash distributions under the Plan
any taxes required to be withheld by federal, state or local government. Whenever the Company
proposes or is required to issue or transfer shares of Stock under the Plan, the Company shall have
the right to require the recipient to remit to the Company an amount sufficient to satisfy any
federal, state and local tax withholding requirements prior to the delivery of any certificate or
certificates for such shares. A Participant may pay the withholding obligation in cash, by
tendering shares of Stock which have been owned by the holder for at least

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six (6) months prior to the date of exercise or, if the applicable Stock Incentive Agreement
provides, a Participant may elect to have the number of shares of Stock he is to receive reduced by
the smallest number of whole shares of Stock which, when multiplied by the Fair Market Value of the
shares of Stock determined as of the Tax Date (defined below), is sufficient to satisfy federal,
state and local, if any, withholding obligations arising from exercise or payment of a Stock
Incentive (a “Withholding Election”). A Participant may make a Withholding Election only if both of
the following conditions are met:

     (a) The Withholding Election must be made on or prior to the date on which the amount
of tax required to be withheld is determined (the “Tax Date”) by executing and delivering to
the Company a properly completed notice of Withholding Election as prescribed by the
Committee; and

     (b) Any Withholding Election made will be irrevocable; however, the Committee may, in
its sole discretion, disapprove and give no effect to the Withholding Election.

     5.2 Changes in Capitalization; Merger; Liquidation.

     (a)
The number of shares of Stock reserved for the grant of Options, the number of shares of Stock reserved for issuance upon the exercise of each outstanding Option, and the
Exercise Price of each outstanding Option shall be proportionately adjusted for any increase
or decrease in the number of issued shares of Stock resulting from a subdivision or
combination of shares or the payment of an ordinary stock dividend in shares of Stock to
holders of outstanding shares of Stock or any other increase or
decrease in the number of shares of Stock outstanding effected without receipt of consideration by the Company.

     (b) In the event of any merger, consolidation, reorganization, extraordinary dividend,
spin-off, sale of substantially all of the Company’s assets, other change in the capital
structure of the Company or its Stock (including any Change in
Control) or tender offer for shares of Stock, the Committee, in its sole discretion, may make such adjustments with
respect to awards and take such other action as it deems necessary or appropriate to reflect
or in anticipation of such merger, consolidation, reorganization, extraordinary dividend,
spin-off, sale of substantially all of the Company’s assets, other change in capital
structure or tender offer, including, without limitation; the assumption of other awards,
the substitution of new awards, the adjustment of outstanding awards (with or without the
payment of any consideration), the acceleration of awards or the removal of restrictions on
outstanding awards, all as may be provided in the applicable Stock Incentive Agreement or,
if not expressly addressed therein, as the Committee subsequently may determine in the event
of any such merger, consolidation, reorganization, extraordinary dividend, spin-off, sale of
substantially all of the Company’s assets, other change in the capital structure of the
Company or its Stock or tender offer for shares of Stock or the termination of outstanding
awards in exchange for the cash value, as determined in good faith by the Committee of the
vested and/or unvested portion of the award. The Committee’s general authority under this
Section 5.2 is limited by and subject to all other express provisions of the Plan. Any
adjustment

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pursuant to this Section 5.2 may provide, in the Committee’s discretion, for the
elimination without payment therefor of any fractional shares that might otherwise become
subject to any Stock Incentive.

     (c) The existence of the Plan and the Stock Incentives granted pursuant to the Plan
shall not affect in any way the right or power of the Company to make or authorize any
adjustment, reclassification, reorganization or other change in its capital or business
structure, any merger or consolidation of the Company, any issue of debt or equity
securities having preferences or priorities as to the Stock or the rights thereof the
dissolution or liquidation of the Company, any sale or transfer of all or any part of its
business or assets, or any other corporate act or proceeding.

     5.3 Cash Awards. The Committee may, at any time and in its discretion, grant to any
holder of a Stock Incentive the right to receive, at such times and in such amounts as determined
by the Committee in its discretion, a cash amount which is intended to reimburse such person for
all or a portion of the federal, state and local income taxes imposed upon such person as a
consequence of the receipt of the Stock Incentive or the exercise of rights thereunder.

     5.4 Compliance with Code. All Incentive Stock Options to be granted hereunder are
intended to comply with Code Section 422, and all provisions of the Plan and all Incentive Stock
Options granted hereunder shall be construed in such a manner as to effectuate that intent.

     5.5 Right to Terminate Service. Nothing in the Plan or in any Stock Incentive
Agreement shall confer upon any Participant the right to continue as an officer, employee or
director of the Company or affect the right of the Company to terminate the Participant’s services
at any time.

     5.6 Restrictions on Delivery and Sale of Shares; Legends. Each Stock Incentive is
subject to the condition that if at any time the Committee, in its discretion, shall determine that
the listing, registration or qualification of the shares covered by such Stock Incentive upon any
securities exchange or under any state or federal law is necessary or desirable as a condition of
or in connection with the granting of such Stock Incentive or the purchase or delivery of shares
thereunder, the delivery of any or all shares pursuant to such Stock Incentive may be withheld
unless and until such listing, registration or qualification shall have been effected. If a
registration statement is not in effect under the Securities Act of 1933 or any applicable state
securities laws with respect to the shares of Stock purchasable or otherwise deliverable under
Stock Incentives then outstanding, the Committee may require, as a condition of exercise of any
Option or as a condition to any other delivery of Stock pursuant to a Stock Incentive, that the
Participant or other recipient of a Stock Incentive represent, in writing, that the shares received
pursuant to the Stock Incentive are being acquired for investment and not with a view to
distribution and agree that the shares will not be disposed of except pursuant to an effective
registration statement, unless the Company shall have received an opinion of counsel that such
disposition is exempt .from such requirement under the Securities Act of 1933 and any applicable
state securities laws. The Company may include on certificates representing shares delivered
pursuant to a Stock Incentive such legends referring to the foregoing representations or

12

 

restrictions or any other applicable restrictions on resale as the Company, in its discretion,
shall deem appropriate.

     5.7 Non-Alienation of Benefits. Other than as specifically provided herein, no
benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or charge; and any attempt to do so shall be void. No such benefit
shall, prior to receipt by the Participant, be in any manner liable for or subject to the debts,
contracts, liabilities, engagements or torts of the Participant.

     5.8 Termination and Amendment of the Plan. The Board of Directors at any time may
amend or terminate the Plan without stockholder approval; provided, however, that the Board of
Directors may condition any amendment on the approval of stockholders of the Company if such
approval is necessary or advisable with respect to tax, securities or other applicable laws. No
such termination or amendment without the consent of the holder of a Stock Incentive shall
adversely affect the rights of the Participant under such Stock Incentive.

     5.9 Stockholder Approval. The Plan was approved by the stockholders of ServisFirst
Bank on June 5, 2005 and further approved by the stockholders of the Company by approval of the
Plan of Reorganization and Agreement of Merger. No additional approval by the stockholders of the
Company is therefore required.

     5.10 Choice of Law. The laws of the State of Alabama shall govern the Plan, to the
extent not preempted by federal law.

     5.11 Effective Date of the Plan. The Plan was approved by the Board of Directors of
ServisFirst Bank as of May 2, 2005 and was approved by the shareholders of ServisFirst Bank as of
that date. The Plan was then assumed by the Company pursuant to that certain Plan of
Reorganization and Agreement of Merger dated August 29, 2007 by which ServisFirst Bank reorganized
in to a holding company structure with the Company as the holding company and ServisFirst Bank as
its wholly-owned subsidiary. As a consequence, all shareholders of ServisFirst Bank became
shareholders of the Company and the Plan became the stock incentive plan for the Company and all
outstanding grants of stock options to purchaser shares of common stock of ServisFirst Bank became
outstanding options to purchase shares of the common stock of the Company. The reorganization and
thus the assumption of the Plan by the Company became effective November 29, 2007.

	 	 	 	 	 	 	 
	 	 	SERVISFIRST BANCSHARES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas A. Broughton III	 	 
	 

	 	 	 	 	 	 
	 
	 

	 	Title:
	 	President and CEO	 	 

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	ATTEST:

	 	 
	 
	 	 
	/s/ William M. Foshee
	 	 
	 
	 	 
	Secretary
	 	 
	 
	 	 
	[SEAL]
	 	 

14EX-10.2 CHANGE OF CONTROL AGREEMENT/WILLIAM FOSHEE

 

Exhibit 10.2

CHANGE IN CONTROL AGREEMENT

     This CHANGE IN CONTROL AGREEMENT (this “Agreement”), dated this 20th day of May,
2005, between ServisFirst Bank, an Alabama State chartered bank (the “Bank”), and William M. Foshee
(the “Executive”).

     WHEREAS, the Bank employs the Executive as Chief Financial Officer, 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 Chief Financial Officer
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

 

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

     (c) 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.

     (d) 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.

     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;

2

 

     (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
tot 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 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 two (2) times
the Executive’s 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

3

 

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, 2005 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 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

4

 

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:

	 	William M. Foshee
	 

	 	5120 Stratford Road
	 

	 	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 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).

5

 

     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/ William M. Foshee
	 	 
	 	 	 	 	 
	 

	 	 	 	       William M. Foshee	 	 
	 
	 	 	 	 	 	 
	 	 	SERVISFIRST BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas A. Broughton III	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	      Thomas A. Broughton III 	 	 
	 

	 	 	 	  Chief Executive Officer	 	 

6

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