Document:

Exhibit 10.26

 

loan
AGREEMENT

 

THIS LOAN AGREEMENT
(the “Agreement”) is made and entered into effective as of December 19, 2019 (“Effective Date”), by and
between PROFESSIONAL HOLDING CORP., a Florida corporation, whose mailing address is 396 Alhambra Circle, Suite 255, Coral
Gables, Florida 33134 (“Borrower”), for the benefit of VALLEY NATIONAL BANK, a National Banking Association
(“Lender” or “Bank”).

 

R E C I T A L S:

 

A.           
Borrower has requested that the Lender grant to the Borrower a $10,000,000.00 revolving line of credit (the “Loan”)
to be secured by collateral owned by BORROWER (collectively the “Collateral”) which Collateral consists of all
of the issued and outstanding shares of PROFESSIONAL BANK, a Florida corporation (“Professional Bank”) pursuant
to amounts, terms and conditions set forth below.

 

B.           
In conjunction with the Loan, the Borrower has executed and delivered to Lender various loan documents (collectively, the
 “Loan Documents”).

 

C.          
As a condition to granting the Loan, the Lender is requiring the Borrower to execute this Agreement.

 

NOW, THEREFORE, in
consideration of the mutual covenants herein contained and other good and valuable considerations, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

 

ARTICLE
1

DEFINITIONS

 

1.1         
DEFINITIONS. The following terms, as used herein, shall have the following meanings:

 

“Advance”
shall mean the principal amount of sums advanced by Lender to or for the benefit of Borrower pursuant to Section 2.4 hereof.

 

“Authorized Signatory”
shall mean DANIEL R. SHEEHAN or MARY USATEGUI.

 

“Borrower”
shall mean PROFESSIONAL HOLDING CORP, a Florida corporation.

 

“Borrowing Date”
shall mean the date as of which an Advance is made.

 

“Business Day”
shall mean a day on which banks are not authorized or required to be closed in New York, New York.

 

“Closing”
shall mean the execution and delivery of documents required to be delivered pursuant to this Agreement.

 

“Collateral”
shall mean all collateral securing the Loan including, without limitation, the assets pledged pursuant to the Pledge Agreement
from Borrower in favor of Lender dated as of the Effective Date. Without limiting the generality of the definition of Collateral,
Collateral shall also include, without limitation: (i) all proceeds from the sale of any of the Collateral; (ii) shares of such
securities which the Lender, in the exercise of Lender’s sole discretion, may elect to accept as Collateral; and (iii) cash
pledged to the Lender represented in U.S. Dollars.

 

    1 

     

    

 

“Commitment”
shall mean the agreement of Lender to make Advances hereunder during the term of the Commitment pursuant to the terms and subject
to the conditions herein expressed.

 

“Commitment Amount”
shall mean the aggregate principal amount of advances which Lender agrees to make available and are permitted to be outstanding
at any one time hereunder, up to the amount set forth in Section 2.1.

 

“Compliance Certificate”
shall mean the Compliance Certificate executed by Borrower in the form of Exhibit 5.5(a) certifying that Borrower is
in compliance with the requirements and the agreements of Borrower herein, and that there does not exist any Default or Event of
Default hereunder.

 

“Default”
shall mean any event or condition which with the passage of time or giving of notice, or both, would, unless cured or waived, constitute
an Event of Default.

 

“Default Rate”
shall mean that certain rate of interest described in the Note as applicable upon an Event of Default.

 

“Dollars”
shall mean lawful money of the United States of America.

 

“Event of Default”
shall mean an Event of Default specified in ARTICLE 7 of this Agreement, including the expiration of any period to cure specified
herein.

 

“Interest Payment
Date” shall mean the quarterly payment date of interest as set forth in the Note.

 

“Interest Rate”
shall mean the floating “prime rate” as published in the “Money Rates” column of The Wall Street Journal
plus zero percent (0%). Said Interest Rate shall adjust with each change in such prime rate (the “Adjustment Date”).
If the Adjustment Date on any particular day would otherwise fall on a day that is not a banking day then, at the Lender’s
option, the Adjustment Date will be the first banking day immediately following thereafter.

 

“Lender”
shall mean VALLEY NATIONAL BANK, a National Banking Association, its successors, assigns and affiliates.

 

“Loan” shall
mean the principal amount or the aggregate principal amount, as the case may be, advanced by Lender as a loan to the Borrower under
ARTICLE 2 hereof, or, where the context so requires, the amount thereof then outstanding.

 

“Loan Documents”
shall mean this Loan Agreement, the Note, the Pledge Agreement, any Hedge Agreement (as hereinafter defined), and the certificates,
documents and instruments to be executed by Borrower called for herein or therein, together with any renewal, modification or consolidation
of any of the foregoing.

 

“Maturity Date”
shall mean the date on which all principal, interest and expenses, if not sooner paid, shall be due and payable in full, as set
forth in the Note.

 

“Note” shall
mean the Promissory Note in the original principal amount of Ten Million Dollars (U.S. $10,000,000.00) dated as of even date herewith,
together with all renewals and restatements thereof and substitutions therefor.

 

    2 

     

    

 

“Notes” shall
mean the Note together with all renewals thereof, substitutions therefor and all other present and subsequent promissory notes
which may have been previously or may hereafter be, executed by Borrower with respect to Advances whether as renewals or not.

 

“Obligation”
shall mean the aggregate of outstanding indebtedness under the Notes and any outstanding principal, interest, expenses and other
indebtedness of Borrower to Lender arising in connection with the Loan Documents not evidenced by the Note, any outstanding amount
advanced or incurred by Lender to enforce, protect, preserve or maintain its rights with respect to, or by reason of Borrower’s
failure to comply with any agreement contained in the Notes, this Loan Agreement, the Pledge Agreement or any of the other Loan
Documents, and all of Lender’s expenses, as described in Section 8.1 hereof, together with all accrued and unpaid interest
on all of the foregoing, all computed and payable in Dollars. Without limiting the generality of the foregoing, the Obligation
shall include, without limitation, all obligations of the Borrower incurred by Borrower under any agreement between Borrower and
Lender or any Lender affiliate now existing or hereafter entered into, which provides for an interest rate, currency, equity, credit
or commodity swap, cap, floor or collar, spot or forward foreign exchange transaction, cross currency rate swap, currency option,
any combination of, or option with respect to, any of the foregoing or any similar transactions, for the purpose of hedging Borrower’s
exposure with respect to the Note to fluctuations in interest rates, exchange rates, currency, stock, portfolio or loan valuations
or commodity prices (including any such or similar agreement or transaction entered into by Lender or any Lender affiliate thereof
in connection with any other agreement or transaction between Borrower and Lender or any Lender affiliate thereof) (“Hedge
Agreement”).

 

“Pledge Agreement”
shall mean the Pledge Agreement from Borrower in favor of Bank dated as of the Effective Date, together with any modification,
amendment or renewal thereof.

 

“Professional
Bank” shall mean Professional Bank, a Florida corporation, or successor by acquisition, merger, consolidation or otherwise.

 

“Regulation D”
shall mean Regulation D of the Board of Governors of the Federal Reserve System, 12 C.F.R. Part 204, or any successor or other
regulation relating to reserve requirements applicable to member banks of the Federal Reserve System or otherwise made applicable
to financial institutions such as the Lender.

 

“Request for Advance”
shall mean the form of Request for Advance attached hereto as Exhibit 4.5.

 

“Security Interest”
shall mean the interest in the Collateral granted by the Pledge Agreement.

 

“Term” shall
mean the period during which the Loan is scheduled to be outstanding hereunder, commencing on the date hereof and ending on the
Maturity Date.

 

“UCC” shall
mean the Uniform Commercial Code as adopted in Florida as of the date of the Pledge Agreement.

 

    3 

     

    

 

ARTICLE
2 

CREDIT FACILITY

 

2.1         
LOAN AMOUNT. The Loan Amount is Ten Million Dollars lawful money of the United States (U.S. $10,000,000.00). Provided
that no Event of Default has occurred and is continuing, Borrower may borrow, repay and reborrow funds under the Loan.

 

2.2         
NOTE. The Loan shall be evidenced by the Note.

 

2.3         
TERM OF COMMITMENT; TERM AND PRINCIPAL PAYMENT OF NOTE.

 

(a)         
Provided all of the conditions for Advances are met, Lender shall make the Loan to Borrower or disburse to third parties
as Borrower may direct, commencing on the date hereof, until the Maturity Date.

 

(b)         
The terms of and the principal payments on the Note shall be as follows:

 

(i)           
Principal outstanding under the Note shall be payable in full on the Maturity Date as therein provided.

 

(ii)          
All other Notes which may subsequently become a part of the Obligation shall be paid in accordance with the terms thereof.

 

(iii)         
If any payment of principal of, or interest on, the Loan shall become due on a day which is not a Business Day, such payment
shall be made on the next succeeding Business Day; provided, however, that interest shall continue to accrue until payment is actually
received.

 

(iv)         
The business records of Lender shall be conclusive as to the date and amount of any Advance hereunder and any payment or
prepayment of interest or principal thereof, absent manifest error.

 

(c)          
The Commitment and the Term shall end one (1) Business Day prior to the close of business (2:00 p.m.) on the Maturity
Date, unless there shall have sooner occurred an Event of Default under this Agreement, in which event, Lender may immediately
accelerate the Loan without prior notice to Borrower; provided, however, that, notwithstanding the foregoing, this Loan Agreement
shall continue in full force and effect until the Obligation is paid in full and Lender carries out the termination provisions
of Section 8.3 hereof.

 

(d)         
The outstanding principal balance under the Note as of any day shall be the outstanding principal balance as of the beginning
of the day, plus any Advances made pursuant hereto charged to the account on that day (exclusive of interest) and less any payments
of principal credited to the account on that day. Each Advance shall therefore bear interest commencing on the date it is made
and continuing until but not including the date it is paid, if timely paid as provided herein.

 

(e)         
Any payment of principal or interest or both not made when due shall itself bear interest on such principal and/or interest
amount of the payment at the Default Rate, commencing on the due date, until payment, maturity, or the occurrence of an Event of
Default. After maturity of a Note, if Lender sends to Borrower written notice of or the occurrence of an Event of Default hereunder
or thereunder, interest shall accrue on the entire outstanding balance of principal and interest at the Default Rate.

 

    4 

     

    

 

2.4         
COMMITMENT AND ADVANCES.

 

(a)         
Subject to compliance by Borrower with all of the conditions set forth in ARTICLE 4 hereof, and provided that no Event of
Default under ARTICLE 7 hereof has occurred and is continuing, and subject to the other conditions contained herein, Lender will
make Advances to Borrower from time to time until the end of the Term of the Commitment, in an aggregate principal amount outstanding
at any one time of up to the maximum amount set forth in Section 2.1 hereof, provided, however, that upon: (i) the occurrence
of any Event of Default; or (ii) the failure to satisfy any condition of any Advance, Lender shall have no obligation to make any
Advance unless and until such Event of Default is cured (if subject to cure) and such condition is satisfied. Borrower may borrow
Advances hereunder and repay and reborrow such sums.

 

(b)         
Procedure for Advances. Any request for an Advance must be received by Lender pursuant to Section 4.5, prior
to 11:00 a.m. Eastern Time on the Borrowing Date, and, if each of the other conditions precedent to such Advance have been satisfied,
the Advance will be available prior to 2:00 p.m. Eastern Time, as the case may be, on such Borrowing Date. Unless Lender is notified
otherwise by Borrower in a signed writing which is accepted and agreed to by Lender, Lender shall cause the amount of any Advance
requested by Borrower to be paid to the credit of Borrower’s deposit account with Lender.

 

All requests for Advance
shall specify (i) the Borrowing Date (which shall be a Business Day), and (ii) the amount of the Advance, and be signed by an Authorized
Signatory. Any notice delivered or given by the Borrower to Lender as provided in this Section 2.4(b) shall be irrevocable
and binding upon the Borrower upon receipt by Lender. Each Advance shall be in a minimum amount of $100,000.00.

 

2.5         
AMBIGUITY OR CONFLICT. In the event of an ambiguity or conflict of terms between any of the provisions of the Note,
Pledge Agreement, the other Loan Documents and this Loan Agreement, the terms of this Loan Agreement shall be deemed to amend and
control all of the other agreements; and, to the extent that any of the agreements are silent, each shall supplement the others;
provided, however, in the event of any conflict between the terms of this Loan Agreement, the Pledge Agreement, the Note, the other
Loan Documents and any of them, the terms which, in Lender’s sole discretion, grant Lender the greater protection with respect
to the prospect of payment of the Note, or in any other manner are of greater benefit to Lender, shall control. All other provisions
of contemporaneous or previous agreements and understandings between Borrower, and Lender relating to the Commitment of Lender
and the Note in conflict with any expressed provision hereof shall be merged into this Loan Agreement and be extinguished and of
no further force and effect.

 

2.6         
THIS SPACE IS INTENTIONALLY LEFT BLANK

 

2.7         
COLLATERAL.

 

(a)         
Continuing Security Interest. As security for the payment and performance of the Obligations, Borrower has granted
to Lender a first priority and continuing Security Interest in the Collateral as described in the Pledge Agreement.

 

(b)         
Upon Lender’s request following an Event of Default, Borrower shall take all action required to enable Lender to realize
upon the Collateral. For the avoidance of doubt Borrower has, even date herewith, exercised and delivered to Lender a Power of
Attorney and Lender is authorized to take all actions reasonably received to realize upon the Collateral following an Event of
Default.

 

    5 

     

    

 

ARTICLE
3

REPRESENTATIONS AND WARRANTIES

 

To induce Lender to enter
into this Loan Agreement and make the Commitment and Advances hereunder, Borrower represents and warrants to Lender as follows:

 

3.1         
POWERS, ETC. Borrower is an entity, duly organized, validly existing and in good standing under the laws of its state
of incorporation and has the power and authority to own its property and to carry on its business in each jurisdiction in which
Borrower does business.

 

3.2         
AUTHORIZATION OF LOAN, ETC. The making of the Loan, the execution, delivery and performance of this Loan Agreement,
the Pledge Agreement, the Note and the other Loan Documents:

 

(a)         
will not violate or contravene

 

(i)           
any provisions of law applicable to Borrower or Professional Bank;

 

(ii)          
any order, rule or regulation of any regulatory authority, court or other agency of government applicable to Borrower or
Professional Bank; or

 

(iii)         
any agreement or obligation to which Borrower or Professional Bank is a party or by which Borrower or Professional Bank
or any of their properties is or may be bound, or be in conflict with, result in a breach of or constitute (with or without notice
or lapse of time, or both) a default or event of default under, any such agreement or other instrument; and

 

(b)         
shall not result in the creation of any lien of any nature whatsoever upon any property or assets of Borrower or Borrower
except as contemplated herein.

 

3.3         
FINANCIAL STATEMENTS. Borrower has heretofore furnished to Lender the audited financial statements of Borrower as
of _________________ (if blank, December 31, 2018), such financial statements are complete and correct in all material respects
and present fairly the financial position of Borrower for the periods to which they relate, and there have not been any changes
in the business and financial condition of Borrower since the date of the latest financial statements furnished to Lender which
are individually or in the aggregate material and adverse in nature, so as to materially affect the financial position of Borrower
or its assets or liabilities or its ability to perform its agreements hereunder, except as fully described on Exhibit 3.3
hereto. The financial statements include or note therein all material liabilities under guaranties and all other material contingent
liabilities.

 

3.4         
LITIGATION. Except as previously disclosed in writing to the Lender, there are no actions, suits or proceedings pending,
or, to the knowledge of Borrower, threatened against or affecting Borrower or Professional Bank, before any court or governmental
authority or arbitrator involving the possibility of any judgment or liability that would likely result in a material adverse change
in the condition (financial or otherwise) of Borrower or Professional Bank, and the Borrower has no knowledge of any default with
respect to any order of any court or governmental authority that would likely result in any such change.

 

3.5         
PAYMENT OF TAXES AND OTHER CHARGES. Borrower has duly filed and paid all federal, state and local tax returns and
taxes shown on the returns (or have timely filed extensions for such returns), and all assessments, governmental and other charges,
liens or claims levied or imposed, and payable as of the date of this Loan Agreement, which if unpaid might become a lien or charge
upon the property, assets or earnings of Borrower or have a material adverse effect on its financial condition or its ability
to perform its agreements hereunder, as the case may be. To the best knowledge of Borrower after due inquiry, all taxes due and
payable as of the date of each return are properly shown on said return.

 

    6 

     

    

 

3.6         
FEDERAL RESERVE REGULATIONS.

 

(a)         
Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve
System of the United States);

 

(b)         
no part of the Advances shall be used to purchase or carry any such margin stock or to extend credit to others for the purpose
of purchasing or carrying any such margin stock; and

 

(c)          
no part of the Advances shall be used for any purpose that violates, or which is inconsistent with, the provisions of Regulation
T, U or X of said Board of Governors.

 

3.7         
CONSENTS, ETC. Other than as otherwise expressly set forth in the Loan Documents, no consent, approval, authorization
of, or registration, declaration or filing with any governmental authority (federal, state or local, domestic or foreign) is required
in connection with the execution or delivery by the Borrower of this Loan Agreement, or the Note, or the performance of or compliance
with the terms, provisions and conditions hereof or thereof or any of the Loan Documents.

 

3.8         
PROPERTIES. Borrower agrees and warrants that Borrower has good, legal and equitable title to all of their respective
properties and assets, tangible and intangible, except such as are expressly and specifically designated as property leased from
others on their respective financial statements.

 

3.9         
AGREEMENTS. Borrower is not a party to any agreement or instrument or subject to any other restriction materially
and adversely affecting their respective properties or assets, or condition (financial or other), or their ability to perform their
agreement herein. Borrower is not in default in the performance, service or fulfillment of any of the obligations, covenants or
conditions contained in any agreement or instrument to which either is a party, which is likely to result in a material adverse
change in either of their condition, financial or otherwise, or either of their ability to perform Borrower’s agreements
herein.

 

3.10      
ENFORCEABILITY OF LOAN DOCUMENTS. The execution and delivery by Borrower of this Loan Agreement, the Pledge Agreement,
the Note and other Loan Documents, and the performance of Borrower’s obligations hereunder or thereunder, or under any other
instrument executed by or on his behalf hereunder, constitute the legal, valid and binding obligations of Borrower, enforceable
against Borrower in accordance with their respective terms, subject to the effect of bankruptcy, insolvency, reorganization, receivership,
moratorium and other similar laws affecting the rights and remedies of creditors generally, and to the effect of general principles
of equity, whether applied by a court of law or equity.

 

3.11      
USE OF PROCEEDS. The Loan shall be used to provide short term working capital for Borrower, but shall not be used
to purchase or carry margin stock within the meaning of 12 C.F.R. Chapter 221. The proceeds of the Loan shall be used for
business purposes only and shall not be used for personal or household purposes.

 

    7 

     

    

 

ARTICLE
4

CONDITIONS OF ADVANCES UNDER THE LOAN

 

The obligation of Lender
to make the Advances under Loan is subject to the following conditions precedent:

 

4.1         
NO DEFAULT. On the effective date of this Loan Agreement, and at the date of each Advance after giving effect to
the Advance hereunder, Borrower shall have observed and performed all the terms, conditions, agreements and provisions set forth
in the Loan Documents, on their respective part to be observed or performed, the warranties of Borrower contained herein or in
any instrument or certificate executed by Borrower and delivered in connection herewith shall be true and correct in all material
respects, and no Event of Default shall have occurred and be continuing.

 

4.2         
OPINIONS OF COUNSEL. On the date of the Closing, Lender shall have received from counsel for the Borrower, a favorable
opinion, dated the closing date, in form and substance acceptable to Lender.

 

4.3         
SUPPORTING DOCUMENTS AND OTHER CONDITIONS. Lender shall have received a certificate from Borrower that there has
not been any material adverse change in the financial condition of Borrower from that reflected on its financial statement most
recently furnished to Lender and that there is no pending or threatened material litigation against Borrower or Professional Bank.

 

4.4         
LITIGATION. There shall be no order, injunction, decree, judgment or verdict prohibiting or restraining (a) Lender
from making the Loan, or (b) Borrower from performing its obligations under the Loan Documents.

 

4.5         
REQUEST FOR ADVANCE. At the time of each Advance hereunder, Borrower shall have delivered to Lender in the form attached
as Exhibit 4.5, dated the date of the Request for the Advance, and signed by an Authorized Signatory of Borrower. There
shall be no exceptions for material litigation (as described in Section 3.4) reflected therein in connection with any Advance.

 

4.6         
DOCUMENTS. This Loan Agreement, all exhibits hereto, and the other Loan Documents must be simultaneously executed
and delivered to Lender at Closing together with the Collateral.

 

ARTICLE
5

COVENANTS

 

From the Effective Date
and so long as this Loan Agreement shall remain in force and effect, and until payment in full of the principal and interest due
under the Note (with all commitments to fund having been terminated) and until full satisfaction of the Obligation, Borrower shall:

 

5.1         
PROMPT PAYMENT. Make payments of principal and interest promptly when due under the Note.

 

5.2         
FINANCIAL COVENANTS.

 

(a)         
Professional Bank shall maintain a minimum Leverage Ratio (defined as Tier 1 Capital divided by Average Assets) of at least
eight percent (8.0%) at all times, tested quarterly.

 

    8 

     

    

 

(b)         
Professional Bank shall maintain a Texas Ratio (defined as non-performing loans plus troubled debt restructures plus loans
greater than 90 days past due divided by tangible common equity plus loan loss reserves) not to exceed thirty-five percent
(35%) at all times, tested quarterly.

 

(c)          
Professional Bank shall maintain a percentage of non-performing loans (defined as non-accrual loans plus accruing loans
greater than 90 days past due divided by total loans) not to exceed five percent (5%) at any time, tested quarterly.

 

5.3         
NOTICE OF DEFAULT. Immediately notify the Lender in writing upon becoming aware of the happening, occurrence or existence
of any Default or Event of Default, and shall provide the Lender with such written notice, and the action being taken or proposed
to be taken by the Borrower with respect thereto.

 

5.4         
NOTICE. Give prompt written notice to Lender of: (i) all litigation against Borrower and/or Professional Bank in
which recovery sought is in excess of $500,000.00 in the aggregate, except in cases where the claim is covered by insurance and
the insurance company has agreed that such claim is covered by insurance (except for deductible amounts); (ii) all proceedings
with respect to Borrower or Professional Bank before any court or governmental authority which if adversely determined would materially
and adversely affect the financial condition of Borrower or Professional Bank; and (iii) any regulatory action against Borrower
or Professional Bank.

 

5.5         
ACCOUNT AND REPORTS. Furnish or cause to be furnished to Lender copies of each of the following:

 

(a)         
Borrower shall deliver to Bank its annual audited financial statements within 180 days of fiscal year end.

 

(b)         
Borrower’s 10K regulatory financial reports within 60 days of each period end.

 

(c)          
Borrower’s 10Q regulatory financial reports within 60 days of each period end.

 

(d)         
Such additional financial reporting with respect to the Borrower as is reasonably requested by Bank.

 

(e)         
With each financial statement described above, a Compliance Certificate in the form of Exhibit 5.5(a) certified
by Borrower.

 

5.6         
FUTURE TAXES. Pay all taxes and governmental assessments as the same shall become due excepting only taxes and governmental
assessments which are being contested in good faith. Except as provided in the immediately preceding sentence, failure to pay taxes
or assessments before they become delinquent shall constitute an Event of Default under this Agreement, at the option of Lender.
If the same shall not be promptly paid, Lender may, at any time before or after delinquency, pay the same without waiving or affecting
any right hereunder and every payment so made shall bear interest from the date thereof at the Default Rate. Nothing to the contrary
herein contained shall require Borrower to pay and discharge any such taxes, assessments, charges, levies or claims so long as
Borrower in good faith shall contest the validity thereof, and shall set aside adequate reserves, including reserves for interest
and penalties with respect thereto.

 

    9 

     

    

 

5.7         
COSTS OF LOAN. Pay all costs including documentary stamp taxes, intangible taxes, other than the annual recurring
tax on intangible property not consisting of obligations secured by real property, attorneys’ fees and filing fees and other
costs as described in Section 7.1 incurred by Lender or Borrower or imposed jointly on both of them in connection with this
Loan Agreement, the other Loan Documents and the Loan hereunder.

 

5.8         
EXECUTION OF OTHER DOCUMENTS. Promptly, upon request by Lender, execute all such additional agreements, contracts,
documents, instruments, take such other actions and give such further assurances, notices and affidavits in connection with this
Loan Agreement and the other Loan Documents as Lender may reasonably deem necessary or otherwise to carry out in good faith the
intent of this Agreement.

 

5.9         
DOCUMENTS REGARDING ADDITIONAL COLLATERAL. To the extent the Borrower acquires from time to time any additional shares
of stock of Collateral as a result of a stock split or stock dividends in respect of the shares constituting the Collateral, the
Borrower shall immediately execute such documents and deliver to the Lender such shares and such documents as are necessary to
grant to the Lender a valid and first lien or security interest in such stock.

 

ARTICLE
6

NEGATIVE COVENANTS

 

From the Effective Date
and so long as this Loan Agreement shall remain in effect, and until payment in full of the principal and interest on the Note,
Borrower shall not:

 

6.1         
NO OTHER DEBT. Voluntarily or involuntarily incur, create, assume or suffer to exist any further debt without prior
written consent from Lender, which consent shall not be unreasonably withheld.

 

6.2         
NO FURTHER LIENS ON AND ENCUMBRANCE OF COLLATERAL. Voluntarily or involuntarily incur, create, assume or suffer to
exist any mortgage, pledge, lien, security interest or other encumbrance of any nature whatsoever on the Collateral other than
the security interest in favor of the Lender contemplated hereby.

 

6.3         
NO OTHER AGREEMENTS. Enter into any arrangements, contractual or otherwise, which would materially and adversely
affect its duties or the rights of the Lender under the Loan Documents, or which is inconsistent with or limits or abrogates any
provision of the Loan Documents.

 

ARTICLE
7

EVENTS OF DEFAULT

 

7.1         
EVENTS OF DEFAULT. Upon the happening of any one or more of the following events, each of which shall constitute
a default hereunder (herein referred to as an “Event of Default”), all liabilities of Borrower to Lender arising in
connection with the Loan Documents, shall thereupon or thereafter, at the option of Lender, without notice or demand, become due
and payable:

 

(a)         
Borrower fails to pay in full, any principal of or interest on the Note following any applicable grace period;

 

(b)          Except
as set forth below, Borrower fails to strictly perform, or comply with any of the agreements and covenants in this Loan
Agreement or any other Loan Document (other than failure to pay principal or interest as set forth in
Section 7.1(a) above), within thirty (30) days after notice to Borrower of such failure to perform or comply when due;
provided, however, if the failure to perform cannot reasonably be cured within such thirty (30) day period, then the Borrower
shall instead have a period of sixty (60) days to cure the default, provided Borrower shall have commenced to cure the
default within the initial thirty (30) day period and shall diligently attempt to cure the default;

 

    10 

     

    

 

(c)          
Borrower or Professional Bank shall make an assignment for the benefit of creditors, file a Petition in Bankruptcy, petition
or apply to any tribunal for the appointment of a custodian, receiver or any trustee or commence any proceeding under any bankruptcy,
reorganization, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, whether now or
hereafter in effect; or if there shall have been filed any such petition or application, or any such proceeding shall have been
commenced against Borrower or Professional Bank in which an order for relief is entered or which remains undismissed for a period
of sixty (60) days or more;

 

(d)         
Borrower or Professional Bank, by any act or omission shall:

 

(i)           
indicate consent to, approval of or fail to object timely to any such petition, application or proceeding or order for relief
or the appointment of a custodian, receiver or any trustee or shall suffer any such custodianship, receivership or trusteeship
to continue undischarged for a period of sixty (60) days or more;

 

(ii)          
generally not pay its debts as such debts become due or admit in writing its inability to pay its debts as they mature;
or

 

(iii)         
have concealed, removed, or permitted to be concealed or removed, any part of its properties or assets, with intent to hinder,
delay or defraud its creditors or any of them, or made or suffered a transfer of any of its property which may be fraudulent under
any bankruptcy, fraudulent conveyance or similar law, or shall have made any transfer of its property to or for the benefit of
a creditor at a time when other creditors similarly situated have not been paid; or

 

(iv)         
be “insolvent”, as such term is defined in the Bankruptcy Code;

 

(e)         
The entry of a judgment or judgments not covered by insurance against Borrower or Professional Bank in an aggregate amount
of $500,000.00 or more, upon which execution is not stayed by stipulation or proper filing of a bond in the appropriate amount
within the time provided by law for the stay of execution;

 

(f)          
A formal adverse regulatory action is entered against either Borrower or Professional Bank;

 

(g)         
The taking of any substantial part of the property of Borrower or Professional Bank at the instance of any governmental
authority without receipt of reasonably equivalent value in exchange therefor;

 

(h)         
A material adverse change in the financial condition of Borrower or Professional Bank from the conditions set forth in the
most recent financial statement of Borrower and Professional Bank furnished to Lender;

 

(i)           
Any written warranty, representation, certificate or statement of Borrower pertaining to or in connection with the Loan
Documents is not true in any material respect as of the date when made;

 

    11 

     

    

 

(j)           
The sale, transfer or encumbrance of any of the Collateral;

 

(k)          
The failure of Borrower to remain in good standing in its state of incorporation, which failure to remain in good standing
shall not be cured within fifteen (15) days following written notice thereof from Lender to Borrower; or

 

(l)           
The merger of Borrower into another entity.

 

Upon the happening of
any Event of Default, or at any time thereafter, the Note, the Obligation and all other payments required to be made hereunder
shall be forthwith due and payable at Lender’s option, both as to principal and interest, without presentment, demand, protest
or other notice of nonpayment or default or other notice of any kind, all of which are hereby expressly waived, anything contained
herein or in the Note to the contrary notwithstanding except as provided above in this Section. Upon the happening of an Event
of Default, the Lender may exercise any rights given to it by law, the Note, or this Loan Agreement or the other Loan Documents,
all of which rights shall be cumulative, and exercisable together and simultaneously and not alternative in any way, provided that
Lender may have only one recovery of the Obligation.

 

7.2         
RECOVERY OF PAYMENTS. If after receipt of any payment of or any part of the Obligation, the Lender is for any reason
compelled to surrender such payment to any person because such payment is determined to be void or voidable as preference, impermissible
setoff, or a diversion of trust funds, or for any other reason, this Agreement shall continue in full force and the Borrower shall
remain liable to Lender for the amount of such payment surrendered. The provisions of this Section shall be and remain effective
notwithstanding any contrary action which may have been taken by the Lender in reliance upon such payment, and any such contrary
action so taken shall be without prejudice to the Lender’s rights under this Agreement and shall be deemed to have been conditioned
upon such payment having become final and irrevocable. The provisions of this Section shall survive the termination of this Agreement
until all periods for such surrender have ended without such action having been instituted.

 

ARTICLE
8

MISCELLANEOUS

 

8.1         
COSTS OF LOAN; EXPENSES OF LENDER. Borrower shall pay all reasonable and documented out-of-pocket third party
expenses incurred by Lender in connection with the enforcement, preservation, and maintenance of the rights of Lender under this
Loan Agreement, the Pledge Agreement and under the Note, and any other agreements between Borrower and Lender, including all reasonable
attorneys’ fees, costs and disbursements incurred by the Lender, whether in consultation or in judicial proceedings or proceedings
of any other kind whatsoever, including, without limitation, bankruptcy and arbitration, including all appellate proceedings. Such
reasonable, out-of-pocket third party expenses specifically include the cost of all documentary tax stamps or other taxes
which are or become payable by reason of the transactions between Borrower and Lender which are encompassed by this Agreement as
well as any penalties or additional taxes which may become due by reason of Borrower’s instructions to Lender concerning
the payment of such taxes, costs of tax, judgment and lien searches, filing and recording fees; provided, however, that Borrower
shall not be liable for the payment of any tax on or measured by net income imposed on or measured by the net income or portion
thereof of Lender.

 

8.2          SURVIVAL
OF REPRESENTATIONS. All covenants, agreements, representations and warranties made herein or delivered or in the other
Loan Documents or to be delivered pursuant hereto shall survive the making by Lender of the Loan and the execution
and delivery to Lender of the Note, and shall continue in full force and effect (as of the date when made, in the case of
representations and warranties) so long as any portion of any principal of the Note is outstanding or this Loan Agreement has
not been terminated, subject to reinstatement in the event of any recovery of payments under the Bankruptcy Code or other
similar laws providing for similar recoveries.

 

    12 

     

    

 

8.3         
TERMINATION OF LOAN. This Agreement may not be terminated by Borrower until payment of the Obligation in full. Upon
payment in full of all sums due and owing to Lender under the provisions of the Note, this Loan Agreement, and all other Loan Documents
and upon termination of any commitment by the Lender hereunder, Lender agrees that within a reasonable time thereafter it will:

 

(a)         
Mark the Note indicating payment in full and return the same to the Borrower.

 

(b)         
Send Borrower written notice signed by Lender that this Loan Agreement and the other Loan Documents are terminated and any
other documents as Borrower shall reasonably request to evidence such termination.

 

(c)         
Release the Collateral to Borrower in exchange for a receipt therefor signed by Borrower on Lender’s standard form
receipt of collateral.

 

(d)         
At the request of Borrower, execute and deliver to Borrower all releases and other documents reasonably necessary for the
release of the liens created by the Loan Document on the Collateral.

 

8.4         
APPLICABLE LAW. The terms and performance of this Loan Agreement and the terms and payment of the Note and the other
Loan Documents shall be construed in accordance with and controlled and governed by the laws of the State of Florida, and applicable
federal law, as amended from time to time. Lender and Borrower agree that the venue of any action brought to enforce any rights
created hereunder may be in Palm Beach County, Florida.

 

8.5         
MODIFICATION OF AGREEMENT. Unless otherwise specifically provided for in this Loan Agreement, no consent, modification,
amendment or waiver of any provision of this Loan Agreement, the Note, the other Loan Documents, nor any consent of Lender to Borrower’s
departing or varying therefrom, shall in any event be effective unless the same shall be in writing and signed by Lender, and,
in the case of any such modification or amendment, Borrower.

 

8.6         
INTEREST. It is the intention of Lender that the interest which may be charged by Lender, or which Borrower may be
obligated to pay to Lender on the Loan, shall never exceed the maximum rate of interest permitted to be charged under applicable
law; Lender will refund any amounts paid in excess of the applicable maximum rate, by payment to Borrower, or by reduction of principal
if so desired by Borrower.

 

8.7         
SEVERABILITY. In case any one or more of the provisions contained in this Loan Agreement, the Note, the other Loan
Documents, or any other instrument executed by Borrower should be invalid, illegal or unenforceable in any respect, the validity,
legality or enforceability of the remaining provisions contained herein or therein or both shall not in any way be affected or
impaired thereby.

 

8.8          SUCCESSORS
AND ASSIGNS; JOINT AND SEVERAL. This Loan Agreement shall inure to the benefit of and shall be binding upon the
successors and assigns of the parties hereto, subject to the consent of Lender, which determination shall be in the
Lender’s sole discretion.

 

    13 

     

    

 

8.9         
NOTICES. All notices, demands, requests, consents or other communications required or permitted to be given or made
under this Agreement shall be in writing and signed by the party giving the same and shall be deemed given or made when delivered
in person, provided a written receipt is obtained from the intended recipient or his authorized agent, or when mailed by certified
mail, return receipt requested, postage prepaid, to the intended recipient at the address set forth in this Agreement or the last
address furnished in writing for such purpose or with respect to communications sent by email upon the sender’s receipt of
an acknowledgment from the intended recipient (such as by the “return receipt requested” function, as available, return
email or other written acknowledgment). Receipts from the United States Postal Service shall constitute sufficient proof of mailing,
provided the name of the addressee is listed on the receipt, and its issuance is verified by proper postal markings.

 

Notice shall be given to Lender
at the following address:

 

VALLEY NATIONAL
BANK, a National Banking Association

1155 Valley Road

Wayne, New Jersey 07470

Attention: Loan Administration

 

With a copy to:

 

GREENSPOON
MARDER LLP

200 East
Broward Boulevard, Suite 1500

Fort Lauderdale,
Florida 33301

Attention:
Mark K. Somerstein, Esq.

Email: mark.somerstein@gmlaw.com

 

And to the Borrower at the following
address:

 

PROFESSIONAL
HOLDING CORP.

5100 PGA
Boulevard, Suite 101

Palm Beach
Gardens, Florida 33418

Email: drs@probankfl.com

 

With a copy to:

 

GUNSTER YOAKLEY

777 South
Flagler Drive, Suite 500 East

West Palm
Beach, Florida 33401

Attention:
Michael Mitrione, Esq.

Email: mmitrione@gunster.com

 

The foregoing addresses may be changed
by either party by giving notice to the other party in accordance with the above.

 

8.10        WAIVER
OF CHOICE OF REMEDIES. Borrower hereby waives any right Borrower may have to cause Lender to choose any remedy and pursue
such remedy to fruition, and agrees and consent that Lender may simultaneously and contemporaneously pursue two or more of
the several remedies available to Lender, all of which are agreed to be concurrent and not alternative in any way, to the end
that Lender may file and pursue to final judgment and final collection, actions (i) to foreclose on Collateral, (ii)
against any one or more or all of the persons claiming ownership or encumbrances against Collateral, (iii) against Borrower
on the Note, and (iv) against any other persons liable in respect of the Obligations, all at the same time, in any
combination, in one action and in several actions, and any of them, all at Lender’s sole discretion, provided only that
Lender may not ultimately recover more than the total amount of the Obligations plus such expenses which are included in the
Obligation.

 

    14 

     

    

 

8.11        
NO WAIVER, CUMULATIVE REMEDIES. No failure or delay on the part of the Lender in exercising any right, power or remedy
hereunder, or under the Notes or other Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise
of any such right, power or remedy preclude any other or further exercise thereof, or the exercise of any other right, power, or
remedy, hereunder or thereunder. The remedies herein and therein provided are cumulative and not exclusive of any remedies provided
by law or in equity.

 

8.12        EVEN
CONSTRUCTION. This Agreement shall not be construed more strictly against either party by virtue of the preparation of this
Agreement.

 

8.13       
WAIVER OF JURY TRIAL. BORROWER AND LENDER WAIVE TRIAL BY JURY IN RESPECT OF ANY “DISPUTE” AND ANY ACTION
ON SUCH “DISPUTE.” THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY BORROWER AND LENDER, AND BORROWER AND
LENDER HEREBY REPRESENT THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY PERSON OR ENTITY TO INDUCE THIS WAIVER
OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING
INTO THE LOAN DOCUMENTS. BORROWER AND LENDER ARE EACH HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE
EVIDENCE OF THIS WAIVER OF JURY TRIAL. BORROWER FURTHER REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF
THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT
LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

 

8.14       
USA Patriot Act Notice. Lender hereby notifies Borrower that pursuant to the requirements of the USA Patriot Act
(Title III of Pub. L. 107-56 [signed into law October 26, 2001]) (the “Act”), Lender is required to obtain, verify
and record information that identifies Borrower, which information includes the name and address of Borrower and other information
that will allow Lender to identify Borrower in accordance with the Act. In addition, Borrower acknowledges and agrees that now
and throughout the term of the Loan, Borrower shall not: (i) be or become subject to at any time to any law, regulation, or list
of any government agency (including, without limitation, the U.S. Office of Foreign Asset Control List) that prohibits or limits
the Lender from making any advance or extension of credit to Borrower or from otherwise conducting business with Borrower or (ii) fail
to provide documentary and other evidence of Borrower and/or Guarantor’s identity as may be reasonably requested by the Lender
at any time to enable the Lender to verify the Borrower’s identity or to comply with any applicable law or regulation, including,
without limitation, Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318.

 

8.15        Entire
Agreement. The Loan Documents constitute the entire understanding and agreement between Borrower and Lender with respect
to the transactions arising in connection with the Loan and supersede all prior written or oral understandings and agreements
between Borrower and Lender with respect to the matters addressed in the Loan Documents. In particular, and
without limitation, the terms of any commitment by Lender to make the Loan are merged into the Loan Documents. Except as
incorporated in writing into the Loan Documents, there are no representations, understandings, stipulations, agreements or
promises, oral or written, with respect to the matters addressed in the Loan Documents.

 

[THIS SPACE IS INTENTIONALLY
LEFT BLANK]

 

    15 

     

    

 

IN WITNESS WHEREOF,
the parties have caused these presents to be executed in their respective names effective on the dates set forth below.

 

	 	BORROWER:
	 	 
	 	PROFESSIONAL
    HOLDING CORP.
	 	 
	 	By:	/s/
    DANIEL R. SHEEHAN
	 	 	Daniel
    R. Sheehan, CEO

 

 

 

BORROWER(S) SIGNATURE PAGE

 

     

     

    

 

 

		LENDER:
	 	 
	 	VALLEY
    NATIONAL BANK, N.A., a National Banking Association
	 	 
	 	By:	/s/
    Thomas Goldrick
	 	Print Name:	Thomas Goldrick
	 	Title:	First Vice President
	 	 	

 

 

 

LENDER(S)
SIGNATURE PAGE

 

     

     

    

 

 

EXHIBIT
3.3

 

None

 

     

     

    

 

EXHIBIT 4.5

 

REQUEST FOR ADVANCE

 

I,                             ,
Authorized Signatory for PROFESSIONAL HOLDING CORP. (“Borrower”), pursuant to the provisions of that certain
Loan Agreement dated as of _________________ (as amended, modified, or supplemented from time to time, the “Loan Agreement”),
between Borrower and of VALLEY NATIONAL BANK, a National Banking Association (“Lender”), hereby certify that:

 

1.           
Borrower hereby requests an Advance in the aggregate principal amount of $______________ to be made on  , 20_____.

 

The proceeds of the Advance shall be disbursed
into the Borrower’s account with Lender. The foregoing instructions shall be irrevocable as provided in the Loan Agreement.

 

2.           
All representations and warranties of the Borrower made in Article 3 of the Loan Agreement are true and correct in all material
respects as of the date hereof as if made on the date hereof, with and after giving effect to the application of the proceeds of
the Advance in connection with which this Request for Advance is given except as set forth on Exhibit A hereto.

 

3.           
There does not exist and will not exist on the date of the requested Advance, both before and after giving effect to the
requested Advance, an Event of Default.

 

4.           
All conditions precedent in Article 4 of the Loan Agreement to the funding of the requested Advance have been met.

 

5.           
The proceeds of the requested Advance will be used for the purposes set forth in Section 3.11 of the Loan Agreement.

 

6.           
Capitalized terms used in this Request for Advance, not otherwise defined or limited herein, are used as defined in the
Loan Agreement.

 

Done and executed
on the            day of             ,
20___.

 

	 	 
	 	Authorized Signatory under the Loan Agreement

 

     

     

    

 

EXHIBIT 5.5(e)

 

COMPLIANCE CERTIFICATE

 

I, the undersigned,
Authorized Signatory of PROFESSIONAL HOLDING CORP. (“Borrower”) under the Loan Agreement (as amended, modified,
or supplemented from time to time, the “Loan Agreement”) between Borrower and VALLEY NATIONAL BANK, a National
Banking Association (“Lender”), dated as of ______________, do hereby certify that:

 

1.           
This Compliance Certificate is furnished pursuant to the Loan Agreement and is made as of            
, 20_____. Unless otherwise defined herein, capitalized terms used in this Compliance Certificate have the meanings assigned
to such terms in the Loan Agreement.

 

2.           
As of the date of this Compliance Certificate, no Default or Event of Default has occurred and is continuing.

 

3.           
Borrower is in compliance with the requirements and agreements of Borrower contained in the Loan Agreement.

 

4.           
The financial statements furnished by Borrower pursuant to the Loan Agreement fairly present the financial condition of
the Borrower.

 

5.           
There has not been any material adverse change in the financial condition of Borrower or Professional Bank from that reflected
on, and as of the date of, the financial statement most recently furnished to Lender.

 

6.           
There is no pending or threatened material litigation against Borrower or Professional Bank, or which seeks to prevent performance
by Borrower of Borrower’s agreements under the Loan Agreement.

 

7.           
Neither the Borrower nor Professional Bank is a party to any agreement or instrument or subject to any other order, rule,
regulation or other restriction materially and adversely affecting their respective properties, assets or financial condition,
or Borrower’s or Professional Bank’s ability to perform the agreements contained in the Loan Agreement.

 

Done and executed this
               day of              , 20___.

  

	 	 
	 	AUTHORIZED SIGNATORYEX-10.5

 Exhibit 10.5 

VELOCITY FINANCIAL, INC. 

2020 OMNIBUS INCENTIVE PLAN 

1.    Purpose. The purpose of the Velocity Financial, Inc. 2020 Omnibus Incentive Plan is to provide a
means through which the Company and the other members of the Company Group may attract and retain key personnel and to provide a means whereby directors, officers, employees, consultants and advisors of the Company and the other members of the
Company Group can acquire and maintain an equity interest in the Company, or be paid incentive compensation, including incentive compensation measured by reference to the value of Common Stock, thereby strengthening their commitment to the welfare
of the Company Group and aligning their interests with those of the Company’s stockholders. 

2.    Definitions. The following definitions shall be applicable throughout the Plan. 

(a)    “Absolute Share Limit” has the meaning given to such term in Section 5(b) of the Plan. 

(b)    “Adjustment Event” has the meaning given to such term in Section 12(a) of the Plan. 

(c)    “Affiliate” means any Person that directly or indirectly controls, is controlled by or is under
common control with the Company. The term “control” (including, with correlative meaning, the terms “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting or other securities, by contract or otherwise. 

(d)    “Award” means, individually or collectively, any Incentive Stock Option, Nonqualified Stock Option,
Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Other Equity-Based Award and Cash-Based Incentive Award granted under the Plan. 

(e)    “Award Agreement” means the document or documents by which each Award (other than a Cash-Based
Incentive Award) is evidenced. 
 (f)    “Board” means the Board of Directors of the Company. 

(g)    “Cash-Based Incentive Award” means an Award denominated in cash that is granted under
Section 11 of the Plan. 
 (h)    “Cause” means, as to any Participant, unless the applicable Award
Agreement states otherwise, (i) “Cause,” as defined in any employment or consulting agreement between the Participant and the Service Recipient in effect at the time of the Participant’s Termination; or (ii) in the absence of any
such employment or consulting agreement (or the absence of any definition of “Cause” contained therein), the Participant’s (A) willful neglect in the performance of the Participant’s duties for the Service Recipient or
willful or repeated failure or refusal to perform such duties; (B) engagement in conduct in connection with the Participant’s employment or service with the Service Recipient, which results in, or could reasonably be expected to result in,
material harm to the business or reputation of the Company or any other member of the Company Group; (C) conviction of, or plea of guilty or no contest to, (I) any felony; or (II) any other crime that results in, or could reasonably
be expected to result in, material harm to the business or reputation of the Company or any other member of the Company Group; (D) material violation of the written policies of the Service Recipient, including, but not limited to, those
relating to sexual harassment or the disclosure or misuse of confidential information, or those set forth in the manuals or statements of policy of the Service Recipient; (E) fraud or misappropriation, embezzlement or misuse of funds or
property belonging to the Company or any other member of the Company Group; or (F) act of personal dishonesty that involves personal profit in connection with the Participant’s employment or service to the Service Recipient. 

 (i)    “Change in Control” means: 

(i)    the acquisition (whether by purchase, merger, consolidation, combination or other similar
transaction) by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than fifty percent (50%) (on a fully diluted basis) of either (A) the then
outstanding shares of Common Stock, taking into account as outstanding for this purpose such Common Stock issuable upon the exercise of options or warrants, the conversion of convertible stock or debt, and the exercise of any similar right to
acquire such Common Stock; or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors; provided, that, for purposes of the Plan, the following
acquisitions shall not constitute a Change in Control: (I) any acquisition by the Company or any Affiliate; (II) any acquisition by any employee benefit plan sponsored or maintained by the Company or any Affiliate; or (III) in respect
of an Award held by a particular Participant, any acquisition by the Participant or any group of Persons including the Participant (or any entity controlled by the Participant or any group of Persons including the Participant); 

(ii)    during any period of twelve (12) months, individuals who, at the beginning of such period,
constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board; provided, that any person becoming a director subsequent to the Effective Date, whose election or
nomination for election was approved by a vote of at least two-thirds (2/3rd) of the Incumbent Directors then on the Board (either by a specific vote or by
approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; provided, that no individual initially elected or nominated
as a director of the Company as a result of an actual or threatened election contest, as such terms are used in Rule 14a-12 of Regulation 14A promulgated under the Exchange Act, with respect to directors or as
a result of any other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board shall be deemed to be an Incumbent Director; or 

(iii)    the sale, transfer or other disposition of all or substantially all of the assets of the Company
Group (taken as a whole) to any Person that is not an Affiliate of the Company. 
 (j)    “Code” means
the Internal Revenue Code of 1986, as amended, and any successor thereto. Reference in the Plan to any section of the Code shall be deemed to include any regulations or other interpretative guidance under such section, and any amendments or
successor provisions to such section, regulations or guidance. 
 (k)    “Committee” means the
Compensation Committee of the Board or any properly delegated subcommittee thereof or, if no such Compensation Committee or subcommittee thereof exists, the Board. 

(l)    “Common Stock” means the common stock of the Company, par value $0.01 per share (and any stock or
other securities into which such Common Stock may be converted or into which it may be exchanged). 

(m)    “Company” means Velocity Financial, Inc., a Delaware corporation, and any successor thereto. 

(n)    “Company Group” means, collectively, the Company and its Subsidiaries. 

(o)    “Date of Grant” means the date on which the granting of an Award is authorized, or such other date
as may be specified in such authorization. 
 (p)    “Designated Foreign Subsidiaries” means all members
of the Company Group that are organized under the laws of any jurisdiction or country other than the United States of America that may be designated by the Board or the Committee from time to time. 

(q)    “Disability” means, as to any Participant, unless the applicable Award Agreement states otherwise,
(i) “Disability,” as defined in any employment or consulting agreement between the Participant and the Service Recipient in effect at the time of the Participant’s Termination; or (ii) in the absence of any such employment or
consulting agreement (or the absence of any definition of “Disability” contained therein), a condition entitling the Participant to receive benefits under a long-term disability plan of the Service Recipient or

 
other member of the Company Group in which such Participant is eligible to participate, or, in the absence of such a plan, the complete and permanent inability of the Participant by reason of
illness or accident to perform the duties of the position at which the Participant was employed or served when such disability commenced. Any determination of whether Disability exists in the absence of a long-term disability plan shall be made
by the Company (or its designee) in its sole and absolute discretion. 
 (r)    “Effective Date” means
[●], 2020. 
 (s)    “Eligible Person” means any
(i) individual employed by any member of the Company Group; provided, that no such employee covered by a collective bargaining agreement shall be an Eligible Person unless and to the extent that such eligibility is set forth in such
collective bargaining agreement or in an agreement or instrument relating thereto; (ii) director or officer of any member of the Company Group; or (iii) consultant or advisor to any member of the Company Group who may be offered securities
registrable pursuant to a registration statement on Form S-8 under the Securities Act, who, in the case of each of clauses (i) through (iii) above has entered into an Award Agreement or who has received
written notification from the Committee or its designee that they have been selected to participate in the Plan. 

(t)    “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor
thereto. Reference in the Plan to any section of (or rule promulgated under) the Exchange Act shall be deemed to include any rules, regulations or other interpretative guidance under such section or rule, and any amendments or successor
provisions to such section, rules, regulations or guidance. 
 (u)    “Exercise Price” has the meaning
given to such term in Section 7(b) of the Plan. 
 (v)    “Fair Market Value” means, on a given
date, (i) if the Common Stock is listed on a national securities exchange, the closing sales price of the Common Stock reported on the primary exchange on which the Common Stock is listed and traded on such date, or, if there are no such sales
on that date, then on the last preceding date on which such sales were reported; (ii) if the Common Stock is not listed on any national securities exchange but is quoted in an inter-dealer quotation system on a last sale basis, the average
between the closing bid price and ask price reported on such date, or, if there is no such sale on that date, then on the last preceding date on which a sale was reported; or (iii) if the Common Stock is not listed on a national securities
exchange or quoted in an inter-dealer quotation system on a last sale basis, the amount determined by the Committee in good faith to be the fair market value of the Common Stock; provided, that, as to any Awards granted on or with a Date of
Grant of the date of the pricing of the Company’s initial public offering, “Fair Market Value” shall be equal to the per share price at which the Common Stock is offered to the public in connection with such initial public offering.

 (w)    “GAAP” has the meaning given to such term in Section 7(d) of the Plan. 

(x)    “Immediate Family Members” has the meaning given to such term in Section 14(b) of the Plan.

 (y)    “Incentive Stock Option” means an Option which is designated by the Committee as an incentive
stock option as described in Section 422 of the Code and otherwise meets the requirements set forth in the Plan. 

(z)    “Indemnifiable Person” has the meaning given to such term in Section 4(e) of the Plan. 

(aa)    “Nonqualified Stock Option” means an Option which is not designated by the Committee as an
Incentive Stock Option. 
 (bb)    “Non-Employee Director” means
a member of the Board who is not an employee of any member of the Company Group. 
 (cc)    “Option”
means an Award granted under Section 7 of the Plan. 
 (dd)    “Option Period” has the meaning
given to such term in Section 7(c) of the Plan. 

 (ee)    “Other Equity-Based Award” means an Award that
is not an Option, Stock Appreciation Right, Restricted Stock or Restricted Stock Unit, that is granted under Section 10 of the Plan and is (i) payable by delivery of Common Stock, and/or (ii) measured by reference to the value of
Common Stock. 
 (ff)    “Participant” means an Eligible Person who has been selected by the Committee
to participate in the Plan and to receive an Award pursuant to the Plan. 
 (gg)    “Performance
Criteria” means specific levels of performance of the Company (and/or one or more of the Company’s Affiliates, divisions or operational and/or business units, business segments, administrative departments, or any combination of the
foregoing) or any Participant, which may be determined in accordance with GAAP or on a non-GAAP basis including, but not limited to, one or more of the following measures: (i) terms relative to a peer
group or index; (ii) basic, diluted, or adjusted earnings per share; (iii) sales or revenue; (iv) earnings before interest, taxes, and other adjustments (in total or on a per share basis); (v) cash available for distribution;
(vi) basic or adjusted net income; (vii) returns on equity, assets, capital, revenue or similar measure; (viii) level and growth of dividends; (ix) the price or increase in price of Common Stock; (x) total shareholder
return; (xi) total assets; (xii) growth in assets, new originations of assets, or financing of assets; (xiii) equity market capitalization; (xiv) reduction or other quantifiable goal with respect to general and/or specific
expenses; (xv) equity capital raised; (xvi) mergers, acquisitions, increase in enterprise value of Affiliates, Subsidiaries, divisions or business units or sales of assets of Affiliates, Subsidiaries, divisions or business units or sales
of assets; and (xvii) any combination of the foregoing. Any one or more of the Performance Criteria may be stated as a percentage of another Performance Criteria, or used on an absolute or relative basis to measure the performance of the
Company and/or one or more Affiliates as a whole or any divisions or operational and/or business units, business segments, administrative departments of the Company and/or one or more Affiliates or any combination thereof, as the Committee may deem
appropriate, or any of the above Performance Criteria may be compared to the performance of a selected group of comparison companies, or a published or special index that the Committee, in its sole discretion, deems appropriate, or as compared to
various stock market indices. 
 (hh)     “Permitted Transferee” has the meaning given to such term in
Section 14(b) of the Plan. 
 (ii)    “Person” means any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act). 
 (jj)    “Plan” means this Velocity
Financial, Inc. 2020 Omnibus Incentive Plan, as it may be amended and/or restated from time to time. 

(kk)    “Qualifying Director” means a person who is, with respect to actions intended to obtain an
exemption from Section 16(b) of the Exchange Act pursuant to Rule 16b-3 under the Exchange Act, a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act. 
 (ll)    “Restricted Period” means the
period of time determined by the Committee during which an Award is subject to restrictions, including vesting conditions. 

(mm)    “Restricted Stock” means Common Stock, subject to certain specified restrictions (which may
include, without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified period of time), granted under Section 9 of the Plan. 

(nn)    “Restricted Stock Unit” means an unfunded and unsecured promise to deliver shares of Common Stock,
cash, other securities or other property, subject to certain restrictions (which may include, without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified period of time), granted
under Section 9 of the Plan. 
 (oo)    “SAR Period” has the meaning given to such term in
Section 8(c) of the Plan. 
 (pp)    “Securities Act” means the Securities Act of 1933, as amended,
and any successor thereto. Reference in the Plan to any section of (or rule promulgated under) the Securities Act shall be deemed to include any rules, regulations or other interpretative guidance under such section or rule, and any amendments
or successor provisions to such section, rules, regulations or guidance. 

 (qq)    “Service Recipient” means, with respect to a
Participant holding a given Award, the member of the Company Group by which the original recipient of such Award is, or following a Termination was most recently, principally employed or to which such original recipient provides, or following a
Termination was most recently providing, services, as applicable. 
 (rr)    “Stock Appreciation Right”
or “SAR” means an Award granted under Section 8 of the Plan. 
 (ss)    “Strike
Price” has the meaning given to such term in Section 8(b) of the Plan. 

(tt)    “Subsidiary” means, with respect to any specified Person: 

(i)    any corporation, association or other business entity of which more than fifty percent (50%) of the
total voting power of shares of such entity’s voting securities (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) is at
the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and 

(ii)    any partnership (or any comparable foreign entity) (A) the sole general partner (or functional
equivalent thereof) or the managing general partner of which is such Person or Subsidiary of such Person or (B) the only general partners (or functional equivalents thereof) of which are that Person or one or more Subsidiaries of that Person
(or any combination thereof). 
 (uu)    “Substitute Award” has the meaning given to such term in
Section 5(e) of the Plan. 
 (vv)    “Sub-Plans” means any sub-plan to the Plan that has been adopted by the Board or the Committee for the purpose of permitting the offering of Awards to employees of certain Designated Foreign Subsidiaries or otherwise outside the United
States of America, with each such sub-plan designed to comply with local laws applicable to offerings in such foreign jurisdictions. Although any Sub-Plan may be
designated a separate and independent plan from the Plan in order to comply with applicable local laws, the Absolute Share Limit and the other limits specified in Section 5(b) shall apply in the aggregate to the Plan and any Sub-Plan adopted hereunder. 
 (ww)    “Termination” means the
termination of a Participant’s employment or service, as applicable, with the Service Recipient for any reason (including death). 

3.    Effective Date; Duration. The Plan shall be effective as of the Effective Date. The
expiration date of the Plan, on and after which date no Awards may be granted hereunder, shall be the tenth (10th) anniversary of the Effective Date; provided, that such expiration shall not affect Awards then outstanding, and the terms and
conditions of the Plan shall continue to apply to such Awards. 
 4.    Administration. 

(a)    General. The Committee shall administer the Plan. To the extent required to comply with the
provisions of Rule 16b-3 promulgated under the Exchange Act (if the Board is not acting as the Committee under the Plan), it is intended that each member of the Committee shall, at the time such member takes
any action with respect to an Award under the Plan that is intended to qualify for the exemptions provided by Rule 16b-3 promulgated under the Exchange Act, be a Qualifying Director. However, the fact
that a Committee member shall fail to qualify as a Qualifying Director shall not invalidate any Award granted by the Committee that is otherwise validly granted under the Plan. 

(b)    Committee Authority. Subject to the provisions of the Plan and applicable law, the Committee shall have
the sole and plenary authority, in addition to other express powers and authorizations conferred on the Committee by the Plan, to (i) designate Participants; (ii) determine the type or types of Awards to be granted to a

 
Participant; (iii) determine the number of shares of Common Stock to be covered by, or with respect to which payments, rights, or other matters are to be calculated in connection with,
Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled in, or exercised for, cash, shares of Common Stock, other securities, other Awards or
other property, or canceled, forfeited, or suspended and the method or methods by which Awards may be settled, exercised, canceled, forfeited, or suspended; (vi) determine whether, to what extent, and under what circumstances the delivery of
cash, shares of Common Stock, other securities, other Awards or other property and other amounts payable with respect to an Award shall be deferred either automatically or at the election of the Participant or of the Committee; (vii) interpret,
administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any instrument or agreement relating to, or Award granted under, the Plan; (viii) establish, amend, suspend, or waive any rules and
regulations and appoint such agents as the Committee shall deem appropriate for the proper administration of the Plan; (ix) adopt Sub-Plans; and (x) make any other determination and take any other
action that the Committee deems necessary or desirable for the administration of the Plan. 

(c)    Delegation. Except to the extent prohibited by applicable law or the applicable rules and regulations of
any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or traded, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate
all or any part of its responsibilities and powers to any person or persons selected by it. Any such allocation or delegation may be revoked by the Committee at any time. Without limiting the generality of the foregoing, the Committee may
delegate to one or more officers of any member of the Company Group, the authority to act on behalf of the Committee with respect to any matter, right, obligation, or election which is the responsibility of, or which is allocated to, the Committee
herein, and which may be so delegated as a matter of law, except with respect to grants of Awards to persons (i) who are Non-Employee Directors, or (ii) who are subject to Section 16 of the
Exchange Act. 
 (d)    Finality of Decisions. Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations, and other decisions under or with respect to the Plan, any Award or any Award Agreement shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive and
binding upon all Persons, including, without limitation, any member of the Company Group, any Participant, any holder or beneficiary of any Award, and any stockholder of the Company. 

(e)    Indemnification. No member of the Board, the Committee or any employee or agent of any member of the
Company Group (each such Person, an “Indemnifiable Person”) shall be liable for any action taken or omitted to be taken or any determination made with respect to the Plan or any Award hereunder (unless constituting fraud or a
willful criminal act or omission). Each Indemnifiable Person shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense (including attorneys’ fees) that may be imposed upon or incurred by
such Indemnifiable Person in connection with or resulting from any action, suit or proceeding to which such Indemnifiable Person may be a party or in which such Indemnifiable Person may be involved by reason of any action taken or omitted to be
taken or determination made with respect to the Plan or any Award hereunder and against and from any and all amounts paid by such Indemnifiable Person with the Company’s approval, in settlement thereof, or paid by such Indemnifiable Person in
satisfaction of any judgment in any such action, suit or proceeding against such Indemnifiable Person, and the Company shall advance to such Indemnifiable Person any such expenses promptly upon written request (which request shall include an
undertaking by the Indemnifiable Person to repay the amount of such advance if it shall ultimately be determined, as provided below, that the Indemnifiable Person is not entitled to be indemnified); provided, that the Company shall have the
right, at its own expense, to assume and defend any such action, suit or proceeding and once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel of the Company’s
choice. The foregoing right of indemnification shall not be available to an Indemnifiable Person to the extent that a final judgment or other final adjudication (in either case not subject to further appeal) binding upon such Indemnifiable
Person determines that the acts, omissions or determinations of such Indemnifiable Person giving rise to the indemnification claim resulted from such Indemnifiable Person’s fraud or willful criminal act or omission or that such right of
indemnification is otherwise prohibited by law or by the organizational documents of any member of the Company Group. The foregoing right of indemnification shall not be exclusive of or otherwise supersede any other rights of indemnification to
which such Indemnifiable Persons may be entitled under the organizational documents of any member of the Company Group, as a matter of law, under an individual indemnification agreement or contract or otherwise, or any other power that the Company
may have to indemnify such Indemnifiable Persons or hold such Indemnifiable Persons harmless. 

 (f)    Board Authority. Notwithstanding anything to the
contrary contained in the Plan, the Board may, in its sole discretion, at any time and from time to time, grant Awards and administer the Plan with respect to any Awards. Any such actions by the Board shall be subject to the applicable rules of
the securities exchange or inter-dealer quotation system on which the Common Stock is listed or quoted. In any such case, the Board shall have all the authority granted to the Committee under the Plan. 

5.    Grant of Awards; Shares Subject to the Plan; Limitations. 

(a)    Grants. The Committee may, from time to time, grant Awards to one or more Eligible Persons. All Awards
granted under the Plan shall vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee, including, without limitation, attainment of Performance Criteria. 

(b)    Share Reserve and Limits. Awards granted under the Plan shall be subject to the following
limitations: (i) subject to Section 12 of the Plan, no more than [●] shares of Common Stock (the “Absolute Share Limit”) shall be available for Awards under the Plan; (ii) subject to Section 12 of the
Plan, no more than the number of shares of Common Stock equal to the Absolute Share Limit may be issued in the aggregate pursuant to the exercise of Incentive Stock Options granted under the Plan; and (iii) the maximum number of shares of
Common Stock subject to Awards granted during a single fiscal year to any Non-Employee Director, taken together with any cash fees paid to such Non-Employee Director
during the fiscal year, shall not exceed one million dollars ($1,000,000) in total value (calculating the value of any such Awards based on the grant date fair value of such Awards for financial reporting purposes). 

(c)    Share Counting. Other than with respect to Substitute Awards, to the extent that an Award expires or is
canceled, forfeited, or terminated without issuance to the Participant of the full number of shares of Common Stock to which the Award related, the unissued shares will again be available for grant under the Plan. Shares of Common Stock shall
be deemed to have been issued in settlement of Awards if the Fair Market Value equivalent of such shares is paid in cash in connection with such settlement; provided, that no shares shall be deemed to have been issued in settlement of a SAR
or Restricted Stock Unit that provides for settlement only in cash and settles only in cash or in respect of any Cash-Based Incentive Award. In no event shall shares (i) tendered or withheld on exercise of Options or other Awards for the
payment of the exercise or purchase price or withholding taxes, (ii) not issued upon the settlement of a SAR that by the terms of the Award Agreement would settle in shares of Common Stock (or could settle in shares of Common Stock), or
(iii) purchased on the open market with cash proceeds from the exercise of Options, again become available for other Awards under the Plan. 

(d)    Source of Shares. Shares of Common Stock issued by the Company in settlement of Awards may be authorized
and unissued shares, shares held in the treasury of the Company, shares purchased on the open market or by private purchase or a combination of the foregoing. 

(e)    Substitute Awards. Awards may, in the sole discretion of the Committee, be granted under the Plan in
assumption of, or in substitution for, outstanding awards previously granted by an entity directly or indirectly acquired by the Company or with which the Company combines (“Substitute Awards”). Substitute Awards shall not be
counted against the Absolute Share Limit; provided, that Substitute Awards issued in connection with the assumption of, or in substitution for, outstanding options intended to qualify as “incentive stock options” within the meaning
of Section 422 of the Code shall be counted against the aggregate number of shares of Common Stock available for Awards of Incentive Stock Options under the Plan. Subject to applicable stock exchange requirements, available shares under a
stockholder-approved plan of an entity directly or indirectly acquired by the Company or with which the Company combines (as appropriately adjusted to reflect the acquisition or combination transaction) may be used for Awards under the Plan and
shall not reduce the number of shares of Common Stock available for issuance under the Plan. 

6.    Eligibility. Participation in the Plan shall be limited to Eligible Persons. 

 7.    Options. 

(a)    General. Each Option granted under the Plan shall be evidenced by an Award Agreement, which agreement
need not be the same for each Participant. Each Option so granted shall be subject to the conditions set forth in this Section 7, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award
Agreement. All Options granted under the Plan shall be Nonqualified Stock Options unless the applicable Award Agreement expressly states that the Option is intended to be an Incentive Stock Option. Incentive Stock Options shall be granted
only to Eligible Persons who are employees of a member of the Company Group, and no Incentive Stock Option shall be granted to any Eligible Person who is ineligible to receive an Incentive Stock Option under the Code. No Option shall be treated
as an Incentive Stock Option unless the Plan has been approved by the stockholders of the Company in a manner intended to comply with the stockholder approval requirements of Section 422(b)(1) of the Code; provided, that any Option
intended to be an Incentive Stock Option shall not fail to be effective solely on account of a failure to obtain such approval, but rather such Option shall be treated as a Nonqualified Stock Option unless and until such approval is
obtained. In the case of an Incentive Stock Option, the terms and conditions of such grant shall be subject to, and comply with, such rules as may be prescribed by Section 422 of the Code. If for any reason an Option intended to be an
Incentive Stock Option (or any portion thereof) shall not qualify as an Incentive Stock Option, then, to the extent of such nonqualification, such Option or portion thereof shall be regarded as a Nonqualified Stock Option appropriately granted under
the Plan. 
 (b)    Exercise Price. Except as otherwise provided by the Committee in the case of Substitute
Awards, the exercise price (“Exercise Price”) per share of Common Stock for each Option shall not be less than one hundred percent (100%) of the Fair Market Value of such share (determined as of the Date of Grant); provided,
that, in the case of an Incentive Stock Option granted to an employee who, at the time of the grant of such Option, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of any member of the Company Group,
the Exercise Price per share shall be no less than one hundred ten percent (110%) of the Fair Market Value per share on the Date of Grant. 

(c)    Vesting and Expiration. 

(i)    Options shall vest and become exercisable in such manner and on such date or dates or upon such
event or events as determined by the Committee. 
 (ii)    Options shall expire upon a date determined by
the Committee, not to exceed ten (10) years from the Date of Grant (the “Option Period”); provided, that, if the Option Period (other than in the case of an Incentive Stock Option) would expire at a time when trading in
the shares of Common Stock is prohibited by the Company’s insider trading policy (or Company-imposed “blackout period”), then the Option Period shall be automatically extended until the thirtieth (30th) day following the expiration of
such prohibition. Notwithstanding the foregoing, in no event shall the Option Period exceed five (5) years from the Date of Grant in the case of an Incentive Stock Option granted to a Participant who on the Date of Grant owns stock
representing more than ten percent (10%) of the voting power of all classes of stock of any member of the Company Group. 

(d)    Method of Exercise and Form of Payment. No shares of Common Stock shall be issued pursuant to any
exercise of an Option until payment in full of the Exercise Price therefor is received by the Company and the Participant has paid to the Company an amount equal to any Federal, state, local and non-U.S.
income, employment and any other applicable taxes required to be withheld. Options which have become exercisable may be exercised by delivery of written or electronic notice of exercise to the Company (or telephonic instructions to the extent
provided by the Committee) in accordance with the terms of the Option accompanied by payment of the Exercise Price. The Exercise Price shall be payable: (i) in cash, check, cash equivalent and/or shares of Common Stock valued at the Fair
Market Value at the time the Option is exercised (including, pursuant to procedures approved by the Committee, by means of attestation of ownership of a sufficient number of shares of Common Stock in lieu of actual issuance of such shares to the
Company); provided, that such shares of Common Stock are not subject to any pledge or other security interest and have been held by the Participant for at least six (6) months (or such other period as established from time to time by the
Committee in order to avoid adverse accounting treatment applying generally accepted accounting principles (“GAAP”)); or (ii) by such other method as the 

 
Committee may permit, in its sole discretion, including, without limitation (A) in other property having a fair market value on the date of exercise equal to the Exercise Price; (B) if
there is a public market for the shares of Common Stock at such time, by means of a broker-assisted “cashless exercise” pursuant to which the Company is delivered (including telephonically to the extent permitted by the Committee) a copy
of irrevocable instructions to a stockbroker to sell the shares of Common Stock otherwise issuable upon the exercise of the Option and to deliver promptly to the Company an amount equal to the Exercise Price; or (C) a “net exercise”
procedure effected by withholding the minimum number of shares of Common Stock otherwise issuable in respect of an Option that are needed to pay the Exercise Price. Any fractional shares of Common Stock shall be settled in cash. 

(e)    Notification upon Disqualifying Disposition of an Incentive Stock Option. Each Participant awarded an
Incentive Stock Option under the Plan shall notify the Company in writing immediately after the date the Participant makes a disqualifying disposition of any Common Stock acquired pursuant to the exercise of such Incentive Stock Option. A
disqualifying disposition is any disposition (including, without limitation, any sale) of such Common Stock before the later of (i) the date that is two (2) years after the Date of Grant of the Incentive Stock Option, or (ii) the date
that is one (1) year after the date of exercise of the Incentive Stock Option. The Company may, if determined by the Committee and in accordance with procedures established by the Committee, retain possession, as agent for the applicable
Participant, of any Common Stock acquired pursuant to the exercise of an Incentive Stock Option until the end of the period described in the preceding sentence, subject to complying with any instructions from such Participant as to the sale of such
Common Stock. 
 (f)    Compliance With Laws, etc. Notwithstanding the foregoing, in no event shall a
Participant be permitted to exercise an Option in a manner which the Committee determines would violate the Sarbanes-Oxley Act of 2002, as it may be amended from time to time, or any other applicable law or the applicable rules and regulations of
the Securities and Exchange Commission or the applicable rules and regulations of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or traded. 

8.    Stock Appreciation Rights. 

(a)    General. Each SAR granted under the Plan shall be evidenced by an Award Agreement. Each SAR so
granted shall be subject to the conditions set forth in this Section 8, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. Any Option granted under the Plan may include tandem
SARs. The Committee also may award SARs to Eligible Persons independent of any Option. 
 (b)    Strike
Price. Except as otherwise provided by the Committee in the case of Substitute Awards, the strike price (“Strike Price”) per share of Common Stock for each SAR shall not be less than one hundred percent (100%) of the Fair
Market Value of such share (determined as of the Date of Grant). Notwithstanding the foregoing, a SAR granted in tandem with (or in substitution for) an Option previously granted shall have a Strike Price equal to the Exercise Price of the
corresponding Option. 
 (c)    Vesting and Expiration. 

(i)    A SAR granted in connection with an Option shall become exercisable and shall expire according to
the same vesting schedule and expiration provisions as the corresponding Option. A SAR granted independent of an Option shall vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the
Committee; provided, that, notwithstanding any such vesting dates or events, the Committee may, in its sole discretion, accelerate the vesting of any SAR at any time and for any reason. 

(ii)    SARs shall expire upon a date determined by the Committee, not to exceed ten (10) years from
the Date of Grant (the “SAR Period”); provided, that, if the SAR Period would expire at a time when trading in the shares of Common Stock is prohibited by the Company’s insider trading policy (or Company-imposed
“blackout period”), then the SAR Period shall be automatically extended until the thirtieth (30th) day following the expiration of such prohibition. 

 (d)    Method of Exercise. SARs which have become
exercisable may be exercised by delivery of written or electronic notice of exercise to the Company in accordance with the terms of the Award, specifying the number of SARs to be exercised and the date on which such SARs were awarded. 

(e)    Payment. Upon the exercise of a SAR, the Company shall pay to the Participant an amount equal to the
number of shares subject to the SAR that is being exercised multiplied by the excess of the Fair Market Value of one (1) share of Common Stock on the exercise date over the Strike Price, less an amount equal to any Federal, state, local and non-U.S. income, employment and any other applicable taxes required to be withheld. The Company shall pay such amount in cash, in shares of Common Stock valued at Fair Market Value, or any combination thereof,
as determined by the Committee. Any fractional shares of Common Stock shall be settled in cash. 

9.    Restricted Stock and Restricted Stock Units. 

(a)    General. Each grant of Restricted Stock and Restricted Stock Units shall be evidenced by an Award
Agreement. Each Restricted Stock and Restricted Stock Unit so granted shall be subject to the conditions set forth in this Section 9, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award
Agreement. 
 (b)    Stock Certificates and Book-Entry; Escrow or Similar Arrangement. Upon the grant of
Restricted Stock, the Committee shall cause a stock certificate registered in the name of the Participant to be issued or shall cause share(s) of Common Stock to be registered in the name of the Participant and held in book-entry form subject to the
Company’s directions and, if the Committee determines that the Restricted Stock shall be held by the Company or in escrow rather than issued to the Participant pending the release of the applicable restrictions, the Committee may require the
Participant to additionally execute and deliver to the Company (i) an escrow agreement satisfactory to the Committee, if applicable; and (ii) the appropriate stock power (endorsed in blank) with respect to the Restricted Stock covered by
such agreement. If a Participant shall fail to execute and deliver (in a manner permitted under Section 14(a) of the Plan or as otherwise determined by the Committee) an agreement evidencing an Award of Restricted Stock and, if applicable,
an escrow agreement and blank stock power within the amount of time specified by the Committee, the Award shall be null and void. Subject to the restrictions set forth in this Section 9, Section 14(c) of the Plan and the applicable
Award Agreement, a Participant generally shall have the rights and privileges of a stockholder as to shares of Restricted Stock, including, without limitation, the right to vote such Restricted Stock. To the extent shares of Restricted Stock
are forfeited, any stock certificates issued to the Participant evidencing such shares shall be returned to the Company, and all rights of the Participant to such shares and as a stockholder with respect thereto shall terminate without further
obligation on the part of the Company. A Participant shall have no rights or privileges as a stockholder as to Restricted Stock Units. 

(c)    Vesting. Restricted Stock and Restricted Stock Units shall vest, and any applicable Restricted Period
shall lapse, in such manner and on such date or dates or upon such event or events as determined by the Committee. 

(d)    Issuance of Restricted Stock and Settlement of Restricted Stock Units. 

(i)    Upon the expiration of the Restricted Period with respect to any shares of Restricted Stock, the
restrictions set forth in the applicable Award Agreement shall be of no further force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is used, upon such expiration, the
Company shall issue to the Participant, or the Participant’s beneficiary, without charge, the stock certificate (or, if applicable, a notice evidencing a book-entry notation) evidencing the shares of Restricted Stock which have not then been
forfeited and with respect to which the Restricted Period has expired (rounded down to the nearest full share). Dividends, if any, that may have been withheld by the Committee and attributable to any particular share of Restricted Stock shall
be distributed to the Participant in cash or, in the sole discretion of the Committee, in shares of Common Stock having a Fair Market Value (on the date of distribution) equal to the amount of such dividends, upon the release of restrictions on such
share and, if such share is forfeited, the Participant shall have no right to such dividends. 

 (ii)    Unless otherwise provided by the Committee in an
Award Agreement or otherwise, upon the expiration of the Restricted Period with respect to any outstanding Restricted Stock Units, the Company shall issue to the Participant or the Participant’s beneficiary, without charge, one (1) share
of Common Stock (or other securities or other property, as applicable) for each such outstanding Restricted Stock Unit; provided, that the Committee may, in its sole discretion, elect to (A) pay cash or part cash and part shares of
Common Stock in lieu of issuing only shares of Common Stock in respect of such Restricted Stock Units; or (B) defer the issuance of shares of Common Stock (or cash or part cash and part shares of Common Stock, as the case may be) beyond the
expiration of the Restricted Period if such extension would not cause adverse tax consequences under Section 409A of the Code. If a cash payment is made in lieu of issuing shares of Common Stock in respect of such Restricted Stock Units,
the amount of such payment shall be equal to the Fair Market Value per share of the Common Stock as of the date on which the Restricted Period lapsed with respect to such Restricted Stock Units. 

(e)    Legends on Restricted Stock. Each certificate, if any, or book entry representing Restricted Stock
awarded under the Plan, if any, shall bear a legend or book entry notation substantially in the form of the following, in addition to any other information the Company deems appropriate, until the lapse of all restrictions with respect to such
shares of Common Stock: 
 TRANSFER OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY IS RESTRICTED PURSUANT TO THE TERMS OF THE VELOCITY
FINANCIAL, INC. 2020 OMNIBUS INCENTIVE PLAN AND A RESTRICTED STOCK AWARD AGREEMENT BETWEEN VELOCITY FINANCIAL, INC. AND PARTICIPANT. A COPY OF SUCH PLAN AND AWARD AGREEMENT IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF VELOCITY FINANCIAL,
INC. 
 10.    Other Equity-Based Awards. The Committee may grant Other Equity-Based
Awards under the Plan to Eligible Persons, alone or in tandem with other Awards, in such amounts and dependent on such conditions as the Committee shall from time to time in its sole discretion determine. Each Other Equity-Based Award granted
under the Plan shall be evidenced by an Award Agreement and shall be subject to such conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. 

11.    Cash-Based Incentive Awards. The Committee may grant Cash-Based Incentive Awards
under the Plan to any Eligible Person. Each Cash-Based Incentive Award granted under the Plan shall be evidenced in such form as the Committee may determine from time to time. 

12.    Changes in Capital Structure and Similar Events. Notwithstanding any other
provision in the Plan to the contrary, the following provisions shall apply to all Awards granted hereunder (other than Cash-Based Incentive Awards): 

(a)    General. In the event of (i) any dividend (other than regular cash dividends) or other distribution
(whether in the form of cash, shares of Common Stock, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, split-off, spin-off, combination, repurchase or exchange of shares of Common Stock or other securities of the Company, issuance of warrants or other rights to acquire shares
of Common Stock or other securities of the Company, or other similar corporate transaction or event that affects the shares of Common Stock (including a Change in Control); or (ii) unusual or nonrecurring events affecting the Company, including
changes in applicable rules, rulings, regulations or other requirements, that the Committee determines, in its sole discretion, could result in substantial dilution or enlargement of the rights intended to be granted to, or available for,
Participants (any event in (i) or (ii), an “Adjustment Event”), the Committee shall, in respect of any such Adjustment Event, make such proportionate substitution or adjustment, if any, as it deems equitable, to any or all of
(A) the Absolute Share Limit, or any other limit applicable under the Plan with respect to the number of Awards which may be granted hereunder; (B) the number of shares of Common Stock or other securities of the Company (or number and kind
of other securities or other property) which may be issued in respect of Awards or with respect to which Awards may be granted under the Plan or any Sub-Plan; and (C) the terms of any outstanding Award,
including, without limitation, (I) the number of shares of Common Stock or other securities of the Company (or number and kind of other securities or other property) subject to outstanding Awards or to which outstanding Awards relate;
(II) the Exercise Price or Strike Price with respect to any Award; or 

 
(III) any applicable performance measures (including, without limitation, Performance Criteria); provided, that, in the case of any “equity restructuring” (within the meaning of
the Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any successor pronouncement thereto)), the Committee shall make an equitable or proportionate adjustment to outstanding Awards to reflect such equity
restructuring. 
 (b)    Change in Control. Without limiting the foregoing, in connection with any Change in
Control, the Committee may, in its sole discretion, provide for any one or more of the following: 

(i)    substitution or assumption of Awards, or to the extent that the surviving entity (or Affiliate
thereof) of such Change in Control does not substitute or assume the Awards, full acceleration of vesting of, exercisability of, or lapse of restrictions on, as applicable, any Awards; provided, that, with respect to any performance-vested
Awards, any such acceleration of vesting, exercisability, or lapse of restrictions shall be based on actual performance through the date of such Change in Control; and 

(ii)    cancellation of any one or more outstanding Awards and payment to the holders of such Awards that
are vested as of such cancellation (including, without limitation, any Awards that would vest as a result of the occurrence of such event but for such cancellation or for which vesting is accelerated by the Committee in connection with such event
pursuant to clause (i) above), the value of such Awards, if any, as determined by the Committee (which value, if applicable, may be based upon the price per share of Common Stock received or to be received by other stockholders of the Company
in such event), including, without limitation, in the case of an outstanding Option or SAR, a cash payment in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Committee) of the shares of Common Stock
subject to such Option or SAR over the aggregate Exercise Price or Strike Price of such Option or SAR (it being understood that, in such event, any Option or SAR having a per share Exercise Price or Strike Price equal to, or in excess of, the Fair
Market Value of a share of Common Stock subject thereto may be canceled and terminated without any payment or consideration therefor). 
 For purposes of
clause (i) above, an award will be considered granted in substitution of an Award if it has an equivalent value (as determined consistent with clause (ii) above) with the original Award, whether designated in securities of the acquiror in
such Change in Control transaction (or an Affiliate thereof), or in cash or other property (including in the same consideration that other stockholders of the Company receive in connection with such Change in Control transaction), and retains the
vesting schedule applicable to the original Award. 
 Payments to holders pursuant to clause (ii) above shall be made in cash or, in the sole
discretion of the Committee, in the form of such other consideration necessary for a Participant to receive property, cash, or securities (or combination thereof) as such Participant would have been entitled to receive upon the occurrence of the
transaction if the Participant had been, immediately prior to such transaction, the holder of the number of shares of Common Stock covered by the Award at such time (less any applicable Exercise Price or Strike Price). 

(c)    Other Requirements. Prior to any payment or adjustment contemplated under this Section 12, the
Committee may require a Participant to (i) represent and warrant as to the unencumbered title to the Participant’s Awards; (ii) bear such Participant’s pro rata share of any post-closing indemnity obligations, and be subject to
the same post-closing purchase price adjustments, escrow terms, offset rights, holdback terms, and similar conditions as the other holders of Common Stock, subject to any limitations or reductions as may be necessary to comply with Section 409A
of the Code; and (iii) deliver customary transfer documentation as reasonably determined by the Committee. 

(d)    Fractional Shares. Any adjustment provided under this Section 12 may provide for the
elimination of any fractional share that might otherwise become subject to an Award. 
 (e)    Binding
Effect. Any adjustment, substitution, determination of value or other action taken by the Committee under this Section 12 shall be conclusive and binding for all purposes. 

 13.    Amendments and Termination. 

(a)    Amendment and Termination of the Plan. The Board or Committee may amend, alter, suspend, discontinue, or
terminate the Plan or any portion thereof at any time; provided, that no such amendment, alteration, suspension, discontinuance or termination shall be made without stockholder approval if (i) such approval is necessary to comply with
any regulatory requirement applicable to the Plan (including, without limitation, as necessary to comply with any rules or regulations of any securities exchange or inter-dealer quotation system on which the securities of the Company may be listed
or quoted) or for changes in GAAP to new accounting standards; (ii) it would materially increase the number of securities which may be issued under the Plan (except for increases pursuant to Sections 5 or 12 of the Plan); or (iii) it would
materially modify the requirements for participation in the Plan; provided, further, that any such amendment, alteration, suspension, discontinuance or termination that would materially and adversely affect the rights of any Participant or
any holder or beneficiary of any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant, holder or beneficiary. Notwithstanding the foregoing, no amendment shall be made to
Section 13(c) of the Plan without stockholder approval. 
 (b)    Amendment of Award Agreements. The
Committee may, to the extent consistent with the terms of the Plan and any applicable Award Agreement, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate, any Award theretofore granted or
the associated Award Agreement, prospectively or retroactively (including after a Participant’s Termination); provided, that, other than pursuant to Section 12, any such waiver, amendment, alteration, suspension, discontinuance,
cancellation or termination that would materially and adversely affect the rights of any Participant with respect to any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant. 

(c)    No Repricing. Notwithstanding anything in the Plan to the contrary, without stockholder approval, except
as otherwise permitted under Section 12 of the Plan, (i) no amendment or modification may reduce the Exercise Price of any Option or the Strike Price of any SAR; (ii) the Committee may not cancel any outstanding Option or SAR and
replace it with a new Option or SAR (with a lower Exercise Price or Strike Price, as the case may be) or other Award or cash payment that is greater than the intrinsic value (if any) of the cancelled Option or SAR; and (iii) the Committee may
not take any other action which is considered a “repricing” for purposes of the stockholder approval rules of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or quoted. 

14.    General. 

(a)    Award Agreements. Each Award (other than a Cash-Based Incentive Award) under the Plan shall be evidenced
by an Award Agreement, which shall be delivered to the Participant to whom such Award was granted and shall specify the terms and conditions of the Award and any rules applicable thereto, including, without limitation, the effect on such Award of
the death, Disability or Termination of a Participant, or of such other events as may be determined by the Committee. For purposes of the Plan, an Award Agreement may be in any such form (written or electronic) as determined by the Committee
(including, without limitation, a Board or Committee resolution, an employment agreement, a notice, a certificate or a letter) evidencing the Award. The Committee need not require an Award Agreement to be signed by the Participant or a duly
authorized representative of the Company. 
 (b)    Nontransferability. 

(i)    Each Award shall be exercisable only by such Participant to whom such Award was granted during the
Participant’s lifetime, or, if permissible under applicable law, by the Participant’s legal guardian or representative. No Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a
Participant (unless such transfer is specifically required pursuant to a domestic relations order or by applicable law) other than by will or by the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment,
sale, transfer or encumbrance shall be void and unenforceable against any member of the Company Group; provided, that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or
encumbrance. 

 (ii)    Notwithstanding the foregoing, the Committee
may, in its sole discretion, permit Awards (other than Incentive Stock Options) to be transferred by a Participant, without consideration, subject to such rules as the Committee may adopt consistent with any applicable Award Agreement to preserve
the purposes of the Plan, to (A) any person who is a “family member” of the Participant, as such term is used in the instructions to Form S-8 under the Securities Act or any successor form of
registration statement promulgated by the Securities and Exchange Commission (collectively, the “Immediate Family Members”); (B) a trust solely for the benefit of the Participant and the Participant’s Immediate Family Members;
(C) a partnership or limited liability company whose only partners or stockholders are the Participant and the Participant’s Immediate Family Members; or (D) a beneficiary to whom donations are eligible to be treated as
“charitable contributions” for federal income tax purposes (each transferee described in clauses (A), (B), (C) and (D) above is hereinafter referred to as a “Permitted Transferee”); provided, that the
Participant gives the Committee advance written notice describing the terms and conditions of the proposed transfer and the Committee notifies the Participant in writing that such a transfer would comply with the requirements of the Plan. 

(iii)    The terms of any Award transferred in accordance with clause (ii) above shall apply to the
Permitted Transferee and any reference in the Plan, or in any applicable Award Agreement, to a Participant shall be deemed to refer to the Permitted Transferee, except that (A) Permitted Transferees shall not be entitled to transfer any Award,
other than by will or the laws of descent and distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred Option unless there shall be in effect a registration statement on an appropriate form covering the shares
of Common Stock to be acquired pursuant to the exercise of such Option if the Committee determines, consistent with any applicable Award Agreement, that such a registration statement is necessary or appropriate; (C) neither the Committee nor
the Company shall be required to provide any notice to a Permitted Transferee, whether or not such notice is or would otherwise have been required to be given to the Participant under the Plan or otherwise; and (D) the consequences of a
Participant’s Termination under the terms of the Plan and the applicable Award Agreement shall continue to be applied with respect to the Participant, including, without limitation, that an Option shall be exercisable by the Permitted
Transferee only to the extent, and for the periods, specified in the Plan and the applicable Award Agreement. 

(c)    Dividends and Dividend Equivalents. The Committee may, in its sole discretion, provide a Participant as
part of an Award with dividends, dividend equivalents, or similar payments in respect of Awards, payable in cash, shares of Common Stock, other securities, other Awards or other property, on a current or deferred basis, on such terms and conditions
as may be determined by the Committee in its sole discretion, including, without limitation, payment directly to the Participant, withholding of such amounts by the Company subject to vesting of the Award or reinvestment in additional shares of
Common Stock, Restricted Stock or other Awards. Without limiting the foregoing, unless otherwise provided in the Award Agreement, any dividend otherwise payable in respect of any share of Restricted Stock that remains subject to vesting
conditions at the time of payment of such dividend shall be retained by the Company and remain subject to the same vesting conditions as the share of Restricted Stock to which the dividend relates. 

(d)    Tax Withholding. 

(i)    A Participant shall be required to pay to the Company or one or more of its Subsidiaries, as
applicable, an amount in cash (by check or wire transfer) equal to the aggregate amount of any income, employment and/or other applicable taxes that are statutorily required to be withheld in respect of an Award. Alternatively, the Company or
any of its Subsidiaries may elect, in its sole discretion, to satisfy this requirement by withholding such amount from any cash compensation or other cash amounts owing to a Participant. 

(ii)    Without limiting the foregoing, the Committee may (but is not obligated to), in its sole
discretion, permit or require a Participant to satisfy, all or any portion of the minimum income, employment and/or other applicable taxes that are statutorily required to be withheld with respect to an Award by (A) the delivery of shares of
Common Stock (which are not subject to any pledge or other security interest) that have been both held by the Participant and vested for at least six (6) months (or such other period as established from time to time by the Committee in order to
avoid adverse accounting treatment under 

 
applicable accounting standards) having an aggregate Fair Market Value equal to such minimum statutorily required withholding liability (or portion thereof); or (B) having the Company
withhold from the shares of Common Stock otherwise issuable or deliverable to, or that would otherwise be retained by, the Participant upon the grant, exercise, vesting or settlement of the Award, as applicable, a number of shares of Common Stock
with an aggregate Fair Market Value equal to an amount, subject to clause (iii) below, not in excess of such minimum statutorily required withholding liability (or portion thereof). 

(iii)    The Committee has full discretion to allow Participants to satisfy, in whole or in part, any
additional income, employment and/or other applicable taxes payable by them with respect to an Award by electing to have the Company withhold from the shares of Common Stock otherwise issuable or deliverable to, or that would otherwise be retained
by, a Participant upon the grant, exercise, vesting or settlement of the Award, as applicable, shares of Common Stock having an aggregate Fair Market Value that is greater than the applicable minimum required statutory withholding liability (but
such withholding may in no event be in excess of the maximum statutory withholding amount(s) in a Participant’s relevant tax jurisdictions). 

(e)    Data Protection. By participating in the Plan or accepting any rights granted under it, each Participant
consents to the collection and processing of personal data relating to the Participant so that the Company and its Affiliates can fulfill their obligations and exercise their rights under the Plan and generally administer and manage the
Plan. This data will include, but may not be limited to, data about participation in the Plan and shares offered or received, purchased, or sold under the Plan from time to time and other appropriate financial and other data (such as the date
on which the Awards were granted) about the Participant and the Participant’s participation in the Plan. 

(f)    No Claim to Awards; No Rights to Continued Employment; Waiver. No employee of any member of the Company
Group, or other Person, shall have any claim or right to be granted an Award under the Plan or, having been selected for the grant of an Award, to be selected for a grant of any other Award. There is no obligation for uniformity of treatment of
Participants or holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee’s determinations and interpretations with respect thereto need not be the same with respect to each Participant and may be made
selectively among Participants, whether or not such Participants are similarly situated. Neither the Plan nor any action taken hereunder shall be construed as giving any Participant any right to be retained in the employ or service of the
Service Recipient or any other member of the Company Group, nor shall it be construed as giving any Participant any rights to continued service on the Board. The Service Recipient or any other member of the Company Group may at any time dismiss
a Participant from employment or discontinue any consulting relationship, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan or any Award Agreement. By accepting an Award under the Plan, a
Participant shall thereby be deemed to have waived any claim to continued exercise or vesting of an Award or to damages or severance entitlement related to non-continuation of the Award beyond the period
provided under the Plan or any Award Agreement, except to the extent of any provision to the contrary in any written employment contract or other agreement between the Service Recipient and/or any member of the Company Group and the Participant,
whether any such agreement is executed before, on or after the Date of Grant. 
 (g)    International
Participants. With respect to Participants who reside or work outside of the United States of America, the Committee may, in its sole discretion, amend the terms of the Plan and create or amend
Sub-Plans or amend outstanding Awards with respect to such Participants in order to conform such terms with the requirements of local law or to obtain more favorable tax or other treatment for a Participant or
any member of the Company Group. 
 (h)    Designation and Change of Beneficiary. Each Participant may file
with the Committee a written designation of one or more Persons as the beneficiary or beneficiaries, as applicable, who shall be entitled to receive the amounts payable with respect to an Award, if any, due under the Plan upon the Participant’s
death. A Participant may, from time to time, revoke or change the Participant’s beneficiary designation without the consent of any prior beneficiary by filing a new designation with the Committee. The last such designation received by
the Committee shall be controlling; provided, that no designation, or change or revocation thereof, shall be effective unless received by the Committee prior to the Participant’s death, and in no event shall it be effective as of a date
prior to such receipt. If no beneficiary designation is filed by a Participant, the beneficiary shall be deemed to be the Participant’s spouse or, if the Participant is unmarried at the time of death, the Participant’s estate. 

 (i)    Termination. Except as otherwise provided in an Award
Agreement, unless determined otherwise by the Committee at any point following such event: (i) neither a temporary absence from employment or service due to illness, vacation or leave of absence (including, without limitation, a call to active
duty for military service through a Reserve or National Guard unit) nor a transfer from employment or service with one Service Recipient to employment or service with another Service Recipient (or vice-versa) shall be considered a Termination; and
(ii) if a Participant undergoes a Termination of employment, but such Participant continues to provide services to the Company Group in a non-employee capacity, such change in status shall not be
considered a Termination for purposes of the Plan. Further, unless otherwise determined by the Committee, in the event that any Service Recipient ceases to be a member of the Company Group (by reason of sale, divestiture, spin-off or other similar transaction), unless a Participant’s employment or service is transferred to another entity that would constitute a Service Recipient immediately following such transaction, such
Participant shall be deemed to have suffered a Termination hereunder as of the date of the consummation of such transaction. 

(j)    No Rights as a Stockholder. Except as otherwise specifically provided in the Plan or any Award
Agreement, no Person shall be entitled to the privileges of ownership in respect of shares of Common Stock which are subject to Awards hereunder until such shares have been issued or delivered to such Person. 

(k)    Government and Other Regulations. 

(i)    The obligation of the Company to settle Awards in shares of Common Stock or other consideration
shall be subject to all applicable laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation
to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any shares of Common Stock pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities Act with the Securities and
Exchange Commission or unless the Company has received an opinion of counsel (if the Company has requested such an opinion), satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available
exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register for sale under the Securities Act any of the shares of Common Stock to be offered or sold
under the Plan. The Committee shall have the authority to provide that all shares of Common Stock or other securities of any member of the Company Group issued under the Plan shall be subject to such stop-transfer orders and other restrictions
as the Committee may deem advisable under the Plan, the applicable Award Agreement, the Federal securities laws, or the rules, regulations and other requirements of the Securities and Exchange Commission, any securities exchange or inter-dealer
quotation system on which the securities of the Company are listed or quoted and any other applicable Federal, state, local or non-U.S. laws, rules, regulations and other requirements, and, without limiting
the generality of Section 9 of the Plan, the Committee may cause a legend or legends to be put on certificates representing shares of Common Stock or other securities of any member of the Company Group issued under the Plan to make appropriate
reference to such restrictions or may cause such Common Stock or other securities of any member of the Company Group issued under the Plan in book-entry form to be held subject to the Company’s instructions or subject to appropriate
stop-transfer orders. Notwithstanding any provision in the Plan to the contrary, the Committee reserves the right to, at any time, add any additional terms or provisions to any Award granted under the Plan that the Committee, in its sole
discretion, deems necessary or advisable in order that such Award complies with the legal requirements of any governmental entity to whose jurisdiction the Award is subject. 

(ii)    The Committee may cancel an Award or any portion thereof if it determines, in its sole discretion,
that legal or contractual restrictions and/or blockage and/or other market considerations would make the Company’s acquisition of shares of Common Stock from the public markets, the Company’s issuance of Common Stock to the Participant,
the Participant’s acquisition of Common Stock from the Company and/or the Participant’s sale of Common Stock to the public markets, illegal, impracticable or inadvisable. If the Committee determines to cancel all or any portion of an
Award in accordance with the foregoing, the Company shall, subject to any limitations or reductions as may be necessary to comply with 

 
Section 409A of the Code, (A) pay to the Participant an amount equal to the excess of (I) the aggregate Fair Market Value of the shares of Common Stock subject to such Award or
portion thereof canceled (determined as of the applicable exercise date, or the date that the shares would have been vested or issued, as applicable); over (II) the aggregate Exercise Price or Strike Price (in the case of an Option or SAR,
respectively) or any amount payable as a condition of issuance of shares of Common Stock (in the case of any other Award). Such amount shall be delivered to the Participant as soon as practicable following the cancellation of such Award or
portion thereof, or (B) in the case of Restricted Stock, Restricted Stock Units or Other Equity-Based Awards, provide the Participant with a cash payment or equity subject to deferred vesting and delivery consistent with the vesting
restrictions applicable to such Restricted Stock, Restricted Stock Units or Other Equity-Based Awards, or the underlying shares in respect thereof. 

(l)    No Section 83(b) Elections Without Consent of Company. No election under
Section 83(b) of the Code or under a similar provision of law may be made unless expressly permitted by the terms of the applicable Award Agreement or by action of the Company in writing prior to the making of such election. If a
Participant, in connection with the acquisition of shares of Common Stock under the Plan or otherwise, is expressly permitted to make such election and the Participant makes the election, the Participant shall notify the Company of such election
within ten (10) days of filing notice of the election with the Internal Revenue Service or other governmental authority, in addition to any filing and notification required pursuant to Section 83(b) of the Code or other applicable
provision. 
 (m)    Payments to Persons Other Than Participants. If the Committee shall find that any Person
to whom any amount is payable under the Plan is unable to care for the Participant’s affairs because of illness or accident, or is a minor, or has died, then any payment due to such Person or the Participant’s estate (unless a prior claim
therefor has been made by a duly appointed legal representative) may, if the Committee so directs the Company, be paid to the Participant’s spouse, child, relative, an institution maintaining or having custody of such Person, or any other
Person deemed by the Committee to be a proper recipient on behalf of such Person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor. 

(n)    Nonexclusivity of the Plan. Neither the adoption of the Plan by the Committee nor the submission of the
Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Committee or Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the
granting of equity-based awards otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases. 

(o)    No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust
or separate fund of any kind or a fiduciary relationship between any member of the Company Group, on the one hand, and a Participant or other Person, on the other hand. No provision of the Plan or any Award shall require the Company, for the
purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company be obligated to maintain separate
bank accounts, books, records or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than as unsecured general creditors of the
Company, except that insofar as they may have become entitled to payment of additional compensation by performance of services, they shall have the same rights as other service providers under general law. 

(p)    Reliance on Reports. Each member of the Committee and each member of the Board shall be fully justified
in acting or failing to act, as the case may be, and shall not be liable for having so acted or failed to act in good faith, in reliance upon any report made by the independent public accountant of any member of the Company Group and/or any other
information furnished in connection with the Plan by any agent of the Company or the Committee or the Board, other than himself or herself. 

(q)    Relationship to Other Benefits. No payment under the Plan shall be taken into account in determining any
benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically provided in such other plan or as required by applicable law. 

 (r)    Governing Law. The Plan shall be governed by and
construed in accordance with the internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws provisions thereof. EACH PARTICIPANT WHO
ACCEPTS AN AWARD IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION, OR OTHER PROCEEDING INSTITUTED BY OR AGAINST SUCH PARTICIPANT IN RESPECT OF THE PARTICIPANT’S RIGHTS OR OBLIGATIONS HEREUNDER. 

(s)    Severability. If any provision of the Plan or any Award or Award Agreement is or becomes or is deemed to
be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the
applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be construed or deemed stricken as to such jurisdiction,
Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect. 

(t)    Obligations Binding on Successors. The obligations of the Company under the Plan shall be binding upon
any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to substantially all of the assets and business of the Company.

 (u)    Section 409A of the Code. 

(i)    Notwithstanding any provision of the Plan to the contrary, it is intended that the provisions of the
Plan comply with Section 409A of the Code, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code. Each Participant
is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or in respect of such Participant in connection with the Plan (including any taxes and penalties under Section 409A of the Code), and
neither the Service Recipient nor any other member of the Company Group shall have any obligation to indemnify or otherwise hold such Participant (or any beneficiary) harmless from any or all of such taxes or penalties. With respect to any
Award that is considered “deferred compensation” subject to Section 409A of the Code, references in the Plan to “termination of employment” (and substantially similar phrases) shall mean “separation from service”
within the meaning of Section 409A of the Code. For purposes of Section 409A of the Code, each of the payments that may be made in respect of any Award granted under the Plan is designated as a separate payment. 

(ii)    Notwithstanding anything in the Plan to the contrary, if a Participant is a “specified
employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, no payments in respect of any Awards that are “deferred compensation” subject to Section 409A of the Code and which would otherwise be payable upon the
Participant’s “separation from service” (as defined in Section 409A of the Code) shall be made to such Participant prior to the date that is six (6) months after the date of such Participant’s “separation from
service” or, if earlier, the date of the Participant’s death. Following any applicable six (6) month delay, all such delayed payments will be paid in a single lump sum on the earliest date permitted under Section 409A of the
Code that is also a business day. 
 (iii)    Unless otherwise provided by the Committee in an Award
Agreement or otherwise, in the event that the timing of payments in respect of any Award (that would otherwise be considered “deferred compensation” subject to Section 409A of the Code) would be accelerated upon the occurrence of
(A) a Change in Control, no such acceleration shall be permitted unless the event giving rise to the Change in Control satisfies the definition of a change in the ownership or effective control of a corporation, or a change in the ownership of
a substantial portion of the assets of a corporation pursuant to Section 409A of the Code; or (B) a Disability, no such acceleration shall be permitted unless the Disability also satisfies the definition of “Disability” pursuant
to Section 409A of the Code. 
 (v)    Clawback/Repayment. All Awards shall be subject to reduction,
cancellation, forfeiture or recoupment to the extent necessary to comply with (i) any clawback, forfeiture or other similar policy adopted by 

 
the Board or the Committee and as in effect from time to time; and (ii) applicable law. Further, to the extent that the Participant receives any amount in excess of the amount that the
Participant should otherwise have received under the terms of the Award for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error), the Participant shall be required to
repay any such excess amount to the Company. 
 (w)    Right of Offset. The Company will have the right to
offset against its obligation to deliver shares of Common Stock (or other property or cash) under the Plan or any Award Agreement any outstanding amounts (including, without limitation, travel and entertainment or advance account balances, loans,
repayment obligations under any Awards, or amounts repayable to the Company pursuant to tax equalization, housing, automobile or other employee programs) that the Participant then owes to any member of the Company Group and any amounts the Committee
otherwise deems appropriate pursuant to any tax equalization policy or agreement. Notwithstanding the foregoing, if an Award is “deferred compensation” subject to Section 409A of the Code, the Committee will have no right to
offset against its obligation to deliver shares of Common Stock (or other property or cash) under the Plan or any Award Agreement if such offset could subject the Participant to the additional tax imposed under Section 409A of the Code in
respect of an outstanding Award. 
 (x)    Expenses; Titles and Headings. The expenses of administering the
Plan shall be borne by the Company Group. The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

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