Document:

EX-10.13

 Exhibit 10.13 

PARDES BIOSCIENCES INC. 

EXECUTIVE SEVERANCE PLAN 

1. Purpose. Pardes Biosciences Inc. (the “Company”) considers it essential to the best interests of its stockholders
to foster the continuous employment of key management personnel. The Board of Directors of the Company (the “Board”) recognizes, however, that, as is the case with many publicly-held corporations, the possibility of an involuntary
termination of employment, either before or after a Change in Control (as defined in Section 2 hereof), exists and that such possibility, and the uncertainty and questions that it may raise among management, may result in the departure or
distraction of management personnel to the detriment of the Company and its stockholders. Therefore, the Board has determined that the Pardes Biosciences Inc. Executive Severance Plan (the “Plan”) should be adopted to reinforce and
encourage the continued attention and dedication of the Company’s Covered Executives (as defined in Section 2 hereof) to their assigned duties without distraction. Nothing in this Plan shall be construed as creating an express or implied
contract of employment and nothing shall alter the “at will” nature of the Covered Executives’ employment with the Company. 

2. Definitions. The following terms shall be defined as set forth below: 

(a) “Accounting Firm” shall mean a nationally recognized accounting firm selected by the Company. 

(b) “Administrator” means the Board or the Compensation Committee of the Board. 

(c) “Base Salary” shall mean the higher of (i) the annual base salary in effect immediately prior to the Date of
Termination or (ii) the annual base salary in effect for the year immediately prior to the year in which the Date of Termination occurs. 

(d) “Cause” shall mean, and shall be limited to, the occurrence of any one or more of the following events: 

(i) the Covered Executive’s intentional commission of an act, or intentional failure to act, that materially injures the
business of the Company; 
 (ii) the Covered Executive’s intentional refusal or intentional failure to act in accordance
with any lawful and proper direction or order of the Board or the Covered Executive’s manager, as applicable; 
 (iii)
the Covered Executive’s material breach of Covered Executive’s fiduciary, statutory, contractual, or common law duties to the Company (including any material breach of the Restrictive Covenant Agreement or the Company’s written
policies); 
 (iv) the Covered Executive’s indictment for or conviction of any felony or any crime involving dishonesty;

  
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 (v) the Covered Executive’s participation in any fraud or other act of
willful misconduct against the Company; 
 provided, however, that for clauses (i) and (ii), in no event shall any business judgment made in good faith
by Covered Executive and within Covered Executive’s defined scope of authority constitute a basis for termination for Cause under this Plan. Further, that in the event that any of the foregoing events listed in clauses (i) or (v) is
reasonably capable of being cured, the Company shall provide Covered Executive with written notice describing the nature of such event and Covered Executive shall thereafter have twenty (20) days to cure such event. 

(e) “Change in Control” shall mean a Sale Event, as defined in the Pardes Biosciences Inc. 2021 Stock Option and Incentive
Plan, as amended from time to time. 
 (f) “Change in Control Period” shall mean the period beginning on the date three
(3) months prior to a Change in Control and ending on the one-year anniversary of the Change in Control. 

(g) “Code” shall mean the Internal Revenue Code of 1986, as amended. 

(h) “Covered Executives” shall mean the Tier 1 Executive and those other employees designated by the Administrator in its
sole discretion as the Tier 2 Executives and Tier 3 Executives, and, in each case, who meet the eligibility requirements set forth in Section 4 of the Plan. 

(i) “Date of Termination” shall mean the date that a Covered Executive’s employment with the Company (or any successor)
ends, which date shall be specified in the Notice of Termination. Notwithstanding the foregoing, a Covered Executive’s employment shall not be deemed to have been terminated solely as a result of the Covered Executive becoming an employee of
any direct or indirect successor to the business or assets of the Company. 
 (j) “Disability” shall mean the following: if
through any illness, injury, accident or condition of either a physical or psychological nature, the Covered Executive becomes unable to perform substantially all of the Covered Executive’s duties and responsibilities for a continuous period of
sixteen (16) consecutive weeks or for any twenty-six (26) weeks within a fifty-two (52) week period.
Determinations as to whether Covered Executive is Disabled shall be made by a physician selected by the Board or its insurers and acceptable to the Covered Executive or the Covered Executive’s legal representative, such agreement as to
acceptability not to be unreasonably withheld or delayed. 
 (k) “Good Reason” shall mean that the Covered Executive has
complied with the “Good Reason Process” following the occurrence of any of the following events without consent: 

(i) a material diminution in the nature or scope of Covered Executive’s position, responsibilities, authority or duties;

 (ii) a material reduction in Covered Executive’s Base Salary (other than as part of a reduction in the base salaries
of all or substantially all other senior executives of the Company that is in the same proportion as the reduction in Covered Executive’s Base Salary); or 

  
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 (iii) the permanent, non-voluntary
relocation of Covered Executive’s principal place of employment with the Company to a location that increases Covered Executive’s one-way commuting distance by more than fifty (50) miles as
compared to Covered Executive’s then-current principal place of employment immediately prior to such relocation. 
 For purposes of
Section 2(k)(i), a change in the reporting relationship, or a change in a title will not, by itself, be sufficient to constitute a material diminution of responsibilities, authority or duties. Additionally, a reassignment of certain of Covered
Executive’s authority, duties or responsibilities related to certain business units/departments, divisions or functions to others will not, by itself, constitute a material diminution of responsibilities, authority or duties for purposes of
Section 2(k)(i), so long as Covered Executive retains his/her authority, duties or responsibilities (including by way of oversite of others) for at least one of the significant business units/departments, divisions or functions for which the
Covered Executive has had primary responsibility. 
 (l) “Good Reason Process” shall mean: 

(i) the Covered Executive reasonably determines in good faith that a “Good Reason” condition has occurred; 

(ii) the Covered Executive notifies the Company in writing of the first occurrence of the Good Reason condition within sixty
(60) days of the first occurrence of such condition; 
 (iii) the Covered Executive cooperates in good faith with the
Company’s efforts, for a period of not less than thirty (30) days following such notice (the “Cure Period”), to remedy the condition; 

(iv) notwithstanding such efforts, the Good Reason condition continues to exist following the Cure Period; and 

(v) the Covered Executive terminates the Covered Executive’s employment and provides the Company with a Notice of
Termination with respect to such termination, each within sixty (60) days after the end of the Cure Period. 
 If the Company cures the
Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred. 
 (m) “Notice of
Termination” shall mean a written notice which shall indicate the specific termination provision in this Plan relied upon for the termination of a Covered Executive’s employment and the Date of Termination. 

(n) “Participation Agreement” shall mean an agreement between a Covered Executive and the Company that
acknowledges the Covered Executive’s participation in the Plan.  

  
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 (o) “Qualified Termination Event” shall mean (i) a
termination of the Covered Executive’s employment by the Company other than for Cause, death or Disability or (ii) the Covered Executive’s resignation from the Company for Good Reason. 

(p) “Restrictive Covenants Agreement” shall mean the Proprietary Information and Invention Assignment Agreement or similar
agreement entered into between the Covered Executive and the Company. 
 (q) “Tier 1 Executive” shall mean the
Company’s Chief Executive Officer. 
 (r) “Tier 2 Executives” shall mean the individuals designated as such by the
Administrator and who are listed in Exhibit A, attached hereto, as such exhibit is amended by the Administrator from time to time. 

(s) “Tier 3 Executives” shall mean the individuals designated as such by the Administrator and who are listed in Exhibit
B, attached hereto, as such exhibit is amended by the Administrator from time to time. 
 3. Administration of the Plan.  

(a) Administrator. The Plan shall be administered by the Administrator. 

(b) Powers of Administrator. The Administrator shall have all powers necessary to enable it properly to carry out its duties with
respect to the complete control of the administration of the Plan. Not in limitation, but in amplification of the foregoing, the Administrator shall have the power and authority in its discretion to: 

(i) construe the Plan to determine all questions that shall arise as to interpretations of the Plan’s provisions; 

(ii) determine which individuals are and are not Covered Executives, designate an individual as Tier 2 Executive or Tier 3
Executive, determine the benefits to which any Covered Executives may be entitled, the eligibility requirements for participation in the Plan and all other matters pertaining to the Plan; 

(iii) adopt amendments to the Plan which are deemed necessary or desirable to comply with all applicable laws and regulations,
including but not limited to Code Section 409A and the guidance thereunder; 
 (iv) make all determinations it deems
advisable for the administration of the Plan, including the authority and ability to delegate administrative functions to a third party; 

(v) decide all disputes arising in connection with the Plan; and 

(vi) otherwise supervise the administration of the Plan. 

  
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 (c) All decisions and interpretations of the Administrator shall be binding on all persons,
including the Company and Covered Executives. 
 4. Eligibility. All Covered Executives who have executed and submitted to the
Company a Participation Agreement, and satisfied such other requirements as may be determined by the Administrator, are eligible to participate in the Plan. The Administrator may determine at any time that a Covered Executive should no longer be
designated as such as a result of a material change in such Covered Executive’s role, and such individual shall cease to be eligible to participate in the Plan upon the Administrator taking action by resolution to update the applicable Exhibits
hereto. 
 5. Termination Benefits Generally. In the event a Covered Executive’s employment with the Company is terminated for
any reason, the Company shall pay or provide to the Covered Executive any earned but unpaid salary, unpaid expense reimbursements in accordance with Company policy, accrued but unused vacation (if the Company has an accrual vacation policy) or leave
entitlement, and any vested benefits the Covered Executive may have under any employee benefit plan of the Company in accordance with the terms and conditions of such employee benefit plan (collectively, the “Accrued Benefits”), within the
time required by law but in no event more than sixty (60) days after the Date of Termination. 
 6. Termination Not in
Connection with a Change in Control. In the event of a Qualified Termination Event at any time other than during the Change in Control Period, with respect to such Covered Executive, in addition to the Accrued Benefits, subject to his or her
execution of a separation agreement in a form and manner satisfactory to the Company containing, among other provisions, a general release of claims in favor of the Company and related persons and entities, confidentiality, return of property, and non-disparagement provisions and reaffirmation of the Restrictive Covenants Agreement (the “Separation Agreement and Release”) and the Separation Agreement and Release becoming irrevocable, all within the
time period set forth in the Separation Agreement and Release but in no event more than sixty (60) days after the Date of Termination, and subject to the Covered Executive complying with the Separation Agreement and Release, the Company shall:

 (a) pay the Covered Executive an amount equal to twelve (12) months’ Base Salary for the Tier 1 Executive, nine
(9) months’ Base Salary for each Tier 2 Executive and six (6) months’ Base Salary for each Tier 3 Executive; 
 (b) if
the Covered Executive was participating in the Company’s group health plan immediately prior to the Date of Termination and elects COBRA health continuation, then the Company shall pay to the Covered Executive a monthly cash payment in an
amount equal to the monthly employer contribution that the Company would have made to provide health insurance to the Covered Executive if the Covered Executive had remained employed by the Company, based on the premium rates as of the Date of
Termination, until the earlier of (i) twelve (12) months for the Tier 1 Executive, nine (9) months for each Tier 2 Executive and six (6) months for each Tier 3 Executive, after the Date of Termination, (ii) the expiration of the
Covered Executive’s eligibility for the continuation coverage under COBRA, or (iii) the date when the Covered Executive becomes eligible for substantially equivalent health insurance coverage in connection with new employment or
self-employment; and 

  
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 (c) for the Tier 1 Executive and each Tier 2 Executive, with respect to outstanding and
unvested equity awards held by the Covered Executive and granted prior to the Effective Date, such equity awards will be subject to any acceleration of vesting provisions as specified in the terms of the applicable award agreements.  
 The amounts payable under Section 6(a) and (b), as applicable, shall be paid out in substantially
equal installments in accordance with the Company’s payroll practice over 12 (twelve) months for the Tier 1 Executive, nine (9) months for each Tier 2 Executive and six (6) months for each Tier 3 Executive, commencing within sixty
(60) days after the Date of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, the amounts shall be paid in the second calendar year
no later than the last day of such 60-day period; provided further, that the initial payment shall include a catch-up payment to cover amounts retroactive to the day
immediately following the Date of Termination. Each payment pursuant to this Plan is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). 

7. Termination in Connection with a Change in Control. In the event a Qualified Termination Event occurs within the Change in Control
Period, then with respect to such Covered Executive, in addition to the Accrued Benefits, subject to his or her execution and non-revocation of the Separation Agreement and Release, all within the time period
set forth in the Separation Agreement and Release, but in no event more than sixty (60) days after the Date of Termination, the Company shall: 

(a) cause 100% of the outstanding and unvested equity awards with time-based vesting held by the Covered Executive to immediately become fully
vested, exercisable or nonforfeitable as of the Date of Termination (or the date of the Change in Control, if later); provided, that the performance conditions applicable to any outstanding and unvested equity awards subject to performance
conditions will be deemed satisfied in the Administrator’s discretion or to the extent of the target level specified in the terms of the applicable award agreement. Notwithstanding the
foregoing, in the event of a Change in Control where the parties to such Change in Control do not provide for the assumption, continuation or substitution of equity awards of the Company, any and all outstanding and unvested equity awards held by
the Covered Executive shall be subject to Section 3(c) of the Company’s 2021 Stock Option and Incentive Plan, as amended from time to time; 

(b) pay to the Covered Executive an amount equal to the sum of (i) 150% of Base Salary for the Tier 1 Executive, 100% of Base Salary for each
Tier 2 Executive and 50% of Base Salary for each Tier 3 Executive plus (ii) 150% for the Tier 1 Executive, 100% for each Tier 2 Executive and 50% for each Tier 3 Executive, of the Covered Executive’s annual target bonus in effect immediately
prior to the Qualified Termination Event (or the Covered Executive’s annual target bonus in effect immediately prior to the Change in Control, if higher); and 

  
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 (c) if the Covered Executive was participating in the Company’s group health plan
immediately prior to the Date of Termination and elects COBRA health continuation, then the Company shall pay to Covered Executive and Covered Executive’s eligible dependents a lump sum cash payment in an amount equal to the monthly employer
contribution that the Company would have made to provide health insurance to the Covered Executive and eligible dependents if the Covered Executive had remained employed by the Company for eighteen (18) months for the Tier 1 Executive, twelve
(12) months for each Tier 2 Executive and six (6) months for each Tier 3 Executive, after the Date of Termination, based on the premium rates as of the Date of Termination. 

The amounts payable under Section 7(b) and (c), as applicable, shall be paid out in a lump sum within sixty (60) days after the Date of Termination;
provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, the amounts shall be paid in the second calendar year no later than the last day of the 60-day period. For the avoidance of doubt, the severance pay and benefits provided in this Section 7 shall apply in lieu of, and expressly supersede, the provisions of Section 6 and no Covered Executive
shall be entitled to the severance pay and benefits under both Section 6 and 7 hereof. 
 8. Additional Limitation. 

(a) Anything in this Plan to the contrary notwithstanding, in the event that the amount of any compensation, payment or distribution by the
Company to or for the benefit of the Covered Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Plan or otherwise, calculated in a manner consistent with Section 280G of the Code and the applicable
regulations thereunder (the “Aggregate Payments”), would be subject to the excise tax imposed by Section 4999 of the Code, then the Aggregate Payments shall be reduced (but not below zero) so that the sum of all of the Aggregate
Payments shall be $1.00 less than the amount at which the Covered Executive becomes subject to the excise tax imposed by Section 4999 of the Code; provided that such reduction shall only occur if it would result in the Covered Executive
receiving a higher After Tax Amount (as defined below) than the Covered Executive would receive if the Aggregate Payments were not subject to such reduction. In the event of such reduction, the Aggregate Payments shall be reduced in the following
order, in each case, in reverse chronological order beginning with the Aggregate Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G of the Code: (i) cash payments not
subject to Section 409A of the Code; (ii) cash payments subject to Section 409A of the Code; (iii) equity-based payments and acceleration; and (iv) non-cash forms of benefits; provided
that in the case of all the foregoing Aggregate Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or
(c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c). 

(b) For purposes of this Section 8, the “After Tax Amount” means the amount of the Aggregate Payments less all federal, state,
and local income, excise and employment taxes imposed on the Covered Executive as a result of the Covered Executive’s receipt of the Aggregate Payments. For purposes of determining the After Tax Amount, the Covered Executive shall be deemed to
pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual
taxation in each applicable state and locality, net of the maximum reduction in federal income taxes (if any) which could be obtained from deduction of such state and local taxes. 

  
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 (c) The determination as to whether a reduction in the Aggregate Payments shall be made
pursuant to Section 8(a) shall be made by the Accounting Firm, which shall provide detailed supporting calculations both to the Company and the Covered Executive within fifteen (15) business days of the Date of Termination, if applicable,
or at such earlier time as is reasonably requested by the Company or the Covered Executive. Any determination by the Accounting Firm shall be binding upon the Company and the Covered Executive. 

9. Restrictive Covenants Agreement. 
 As
a condition to participating in the Plan, each Covered Executive shall continue to comply with the terms and conditions contained in the Restrictive Covenants Agreements or similar agreement entered into between the Covered Executive and the Company
and such other agreement(s) as designated in the applicable Participation Agreement. If a Covered Executive has not entered into a Restrictive Covenants Agreement or similar agreement with the Company, he or she shall enter into such agreement prior
to participating in the Plan.  
 10. Withholding. All payments made by the
Company under this Plan shall be subject to any tax or other amounts required to be withheld by the Company under applicable law. 
 11.
Section 409A. 
 (a) Anything in this Plan to the contrary notwithstanding, if at the time of the Covered Executive’s
“separation from service” within the meaning of Section 409A of the Code, the Company determines that the Covered Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to
the extent any payment or benefit that the Covered Executive becomes entitled to under this Plan would be considered deferred compensation subject to the twenty (20) percent additional tax imposed pursuant to Section 409A(a) of the Code as
a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (i) six (6) months and one (1) day after the Covered
Executive’s separation from service, or (ii) the Covered Executive’s death. If any such delayed cash payment is otherwise payable on an installment basis, the first payment shall include a
catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance of the
installments shall be payable in accordance with their original schedule. 
 (b) The parties intend that this Plan will be administered in
accordance with Section 409A of the Code and that all amounts payable hereunder shall be exempt from the requirements of such section as a result of being “short term deferrals” for purposes of Section 409A of the Code to the
greatest extent possible. To the extent that any provision of this Plan is not exempt from Section 409A of the Code and ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner to comply
with Section 409A of the Code. Each payment pursuant to this Plan is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). The parties agree that this
Plan may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without
additional cost to either party. 

  
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 (c) To the extent that any payment or benefit described in this Plan constitutes “non-qualified deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Covered Executive’s termination of employment, then such
payments or benefits shall be payable only upon the Covered Executive’s “separation from service.” The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set
forth in Treasury Regulation Section 1.409A-1(h). 
 (d) All
in-kind benefits provided and expenses eligible for reimbursement under this Plan shall be provided by the Company or incurred by the Covered Executive during the time periods set forth in this Plan. All
reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred. The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement
in any other taxable year (except for any lifetime or other aggregate limitation applicable to medical expenses). Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for
another benefit. 
 (e) The Company makes no representation or warranty and shall have no liability to the Covered Executive or any other
person if any provisions of this Plan are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section. 

12. Notice and Date of Termination.  

(a) Notice of Termination. A termination of the Covered Executive’s employment shall be communicated by Notice of Termination from
the Company to the Covered Executive or vice versa in accordance with this Section 12. 
 (b) Notice to the Company. Any
notices, requests, demands, and other communications provided for by this Plan shall be sufficient if in writing and delivered in person or sent by registered or certified mail, postage prepaid, to a Covered Executive at the last address the Covered
Executive has filed in writing with the Company, or to the Company at the following physical or email address: 
 Pardes Biosciences Inc.

 Attention: General Counsel 

2173 Salk Ave. 
 Suite 250, PMB
#052 
 Carlsbad, CA 92008 

13. No Mitigation. The Covered Executive is not required to seek other employment or to attempt in any way to reduce any amounts
payable to the Covered Executive by the Company under this Plan. 

  
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 14. Benefits and Burdens. This Plan shall inure to the benefit of and be binding upon
the Company and the Covered Executives, their respective successors, executors, administrators, heirs and permitted assigns. In the event of a Covered Executive’s death after a termination of employment but prior to the completion by the
Company of all payments due to the Covered Executive under this Plan, the Company shall continue such payments to the Covered Executive’s beneficiary designated in writing to the Company prior to the Covered Executive’s death (or to the
Covered Executive’s estate, if the Covered Executive fails to make such designation). 
 15. Enforceability. If any portion or
provision of this Plan shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Plan, or the application of such portion or provision in circumstances other than those as to which it
is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Plan shall be valid and enforceable to the fullest extent permitted by law. 

16. Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of
any party to require the performance of any term or obligation of this Plan, or the waiver by any party of any breach of this Plan, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent
breach. 
 17. Non-Duplication of Benefits and Effect on Other Plans. Notwithstanding any
other provision in the Plan to the contrary, the benefits provided hereunder shall be in lieu of any other severance payments and/or benefits provided by the Company, including any such payments and/or benefits pursuant to an employment agreement or
offer letter between the Company and the Covered Executive, other than as provided in Section 3(c) of the Company’s 2021 Stock Option and Incentive Plan, as amended from time to time. 

18. No Contract of Employment. Nothing in this Plan shall be construed as giving any Covered Executive any right to be retained in the
employ of the Company or shall affect the terms and conditions of a Covered Executive’s employment with the Company. 
 19.
Amendment or Termination of Plan. The Company may amend or terminate this Plan at any time or from time to time, but no such action shall adversely affect the rights of any Covered Executive without the Covered Executive’s written
consent. 
 20. Governing Law. This Plan shall be construed under and be governed in all respects by the laws of the State of
Delaware, without giving effect to the conflict of laws principles. 
 21. Obligations of Successors(c). In addition to any
obligations imposed by law upon any successor to the Company, any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company shall expressly assume and
agree to perform this Plan in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. 

22. Effectiveness and Term. The Executive Severance Plan is effective as of December 23, 2021 (the “Effective Date”).

  
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 Exhibit A 

Tier 2 Executives1 

[***] 
  

 

	1 	 Tier 2 = C-level Executives 

  
 11 

 Exhibit B 

Tier 3 Executives2 

[***] 
  

 

	2 	 Tier 3 = Vice President Level 

  
 12EX-4.1

 Exhibit 4.1 

December 30, 2021 
 Priam Capital Fund II,
LP 
 c/o Priam Capital Associates, LLC 
 445 Park Avenue, Suite
1401 
 New York, NY 10022 
 Patriot Financial Partners II,
L.P. 
 Patriot Financial Partners Parallel II, L.P. 
 c/o
Patriot Financial Partners II, LP 
 Four Radnor Corporate Center, Suite 210 

100 Matsonford Road 
 Radnor, PA 19087 

 

	Re:	 USCB Financial Holdings, Inc. 

Ladies and Gentlemen: 
 Reference is made to that
certain Second Amended and Restated Investment Agreement (the “Investment Agreement”), dated February 19, 2015, between U.S. Century Bank, a Florida banking corporation (“USCB”), Priam Capital Fund II, LP
(“Priam”), Patriot Financial Partners II, L.P. and Patriot Financial Partners Parallel II, L.P. (together with Patriot Financial Partners II, L.P., “Patriot”). 

In connection with the reorganization of USCB (the “Reorganization”), pursuant to which each outstanding share of USCB Common Stock
(as defined below) will be converted into one share of the corresponding Parent Common Stock (as defined below), with the result that USCB will become a wholly-owned subsidiary of USCB Financial Holdings, Inc., a Florida corporation
(“Parent”), Parent, USCB and the Large Investors are entering into this agreement (this “Side Letter Agreement”) and, as such, the parties hereto acknowledge and agree that, upon the effectiveness of the Reorganization (the
“Effective Time”), this Side Letter Agreement shall supersede and replace the obligations of USCB set forth in Sections 6.3, 7.4, 7.11, 7.13, 7.14, 7.15, 7.19 and 7.20 of the Investment Agreement. For the avoidance of doubt and
notwithstanding anything to the contrary contained herein, the provisions of Article X of the Investment Agreement will not be affected by this Side letter Agreement and shall remain in full force and effect in accordance with its terms. 

1. Certain Definitions. In addition to capitalized terms defined elsewhere herein, for purposes of this Side Letter Agreement, the
following terms shall have the following respective meanings: 
 (a) “Affiliate” means, as to any Person, any other Person which,
directly or indirectly, is in control of, is controlled by or is under common control with such Person. For purposes of this definition, “control,” “controlling,” “controlled by” and “under common control
with” mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, or otherwise. 

 (b) “BHC Act” means Bank Holding Company Act of 1956, as amended. 

(c) “Business Day” means Monday through Friday of each week, except a legal holiday recognized as such by the United States federal
government or any day on which banking institutions in the State of Florida or the State of New York are authorized or obligated by Law to close. 

(d) “CBCA” means the federal Change in Bank Control Act, 12 U.S.C. 1817(j), as amended, and the rules and regulations issued
thereunder. 
 (e) “Exchange Act” means the Securities Exchange Act of 1934, as amended, together with the rules and regulations
promulgated thereunder. 
 (f) “FDIC” means the Federal Deposit Insurance Corporation. 

(g) “Federal Reserve” means The Board of Governors of the Federal Reserve System. 

(h) “Florida OFR” means the State of Florida Office of Financial Regulation. 

(i) “GAAP” means generally accepted accounting principles in the United States, consistently applied over the period involved. 

(j) “Governmental Authority” means any federal, state, local or foreign government or any other governmental, legislative, judicial,
arbitral, administrative, executive or regulatory authority (including any Regulatory Authorities), instrumentality, agency, commission, body, court or other governmental entity, self-regulatory organization or any Taxing Authority. 

(k) “Large Investor” means each of Priam and Patriot. For purpose of this definition, this Side Letter Agreement shall be deemed to
be a “stock purchase agreement” within the meaning of Article X, Section A.6 of Parent’s Articles of Incorporation. 
 (l)
“Law” means any federal, state, county, municipal, local or foreign law, statute, ordinance, rule, regulation, Permit, consent, waiver, notice, approval, registration, finding of suitability, license, judgment, Order, decree, injunction or
other authorization. 
 (m) “Offering” means USCB’s offering in 2015 of an aggregate amount of: (i) 9,594,556 shares of
voting USCB Common Stock; (ii) 12,009,480 shares of Class D non-voting, perpetual preferred stock, $1.00 par value per share; (iii) 6,121,052 shares of non-voting
USCB Common Stock; and (iv) 52,748 shares of Class C non-voting, perpetual preferred stock, $1.00 par value per share. 

(n) “Order” means any decree, injunction, judgment, order, decision or award, ruling, or writ of any Governmental Authority. 

  
 2 

 (o) “Organizational Documents” means, with respect to any Person, such
Person’s articles of incorporation, articles of organization, charter, by-laws, certificate of incorporation, limited liability company operating agreement, partnership agreement or other similar
organizational or constituent documents. 
 (p) “Person” means an individual, corporation, partnership, limited liability company,
association, trust, unincorporated organization, other entity or group (as defined in Section 13(d)(3) of the Exchange Act). 
 (q)
“Parent Common Stock” means both the shares of Class A Voting Common Stock of Parent, $1.00 par value per share, and the shares of Class B Non-Voting Common Stock of Parent, $1.00 par value
per share. 
 (r) “Parent Subsidiaries” means U.S. Century Bank, U.S. Century Real Estate Holdings, LLC, U.S. Century REH I, LLC,
U.S. Century REH II, LLC, U.S. Century REH III, LLC, U.S. Century REH IV, LLC, U.S. Century REH V, LLC, U.S. Century REH VI, LLC, U.S. Century REH VII, LLC and Florida Peninsula Title LLC and such other entities that become Subsidiaries of Parent
subsequent to the date hereof. 
 (s) “Regulatory Authority” means any Governmental Authority charged with the supervision or
regulation of financial institutions or their holding companies or issuers of securities or engaged in the insurance of deposits (including the Federal Reserve, any Federal Reserve Bank, the Florida OFR and the FDIC). 

(t) “Smaller Investor” means any Person that concurrently participated with the Large Investors in the Offering by entering into
separate subscription agreements. 
 (u) “Subsidiary” means, with respect to any Person, any corporation, partnership, joint
venture, limited liability company or other business association or entity, whether incorporated or unincorporated, of which (a) such Person or any other Subsidiary of such Person is a general partner or a managing member, (b) such Person
and/or one or more of its Subsidiaries holds voting power to elect a majority of the board of directors or other governing body performing similar functions or (c) such Person and/or one or more of its Subsidiaries, directly or indirectly, owns
or controls more than 50% of the equity, membership, partnership or similar interests. 
 (v) “Tax” (including, with correlative
meanings, the terms “Taxes” and “Taxable”) means (a) all federal, state, local and foreign taxes, charges, fees, customs, duties, levies or other assessments, however denominated, including all net income, gross income,
profits, gains, gross receipts, sales, use, ad valorem, value added, goods and services, capital, production, transfer, franchise, windfall profits, license, alternative or add-on minimum withholding, payroll,
employment, disability, employer health, excise, estimated, severance, stamp, occupation, property, environmental, unemployment, capital stock or any other taxes, charges, fees, customs, duties, levies or other assessments of any nature whatsoever,
together with all interest, penalties and additions imposed with respect to such amounts and any interest in respect of such penalties and additions and (b) any liability pursuant to Section 1.1502-6
of the Treasury Regulations or comparable provisions of state, local or foreign Tax Law, any 

  
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obligations under any contract with any Person with respect to the liability for, or sharing of, Taxes (including pursuant to Section 1.1502-6 of the
Treasury Regulations or comparable provisions of state, local or foreign Tax Law) and any liability for Taxes as a transferee or successor, by contract, indemnity or otherwise, together with all interest, penalties and additions imposed with respect
to such amounts and any interest in respect of such penalties and additions. 
 (w) “Taxing Authority” means any Governmental
Authority charged with the administration of any Tax Law. 
 (x) “Tax Law” means any applicable Law relating to Taxes. 

(y) “USCB Common Stock” means both the shares of Class A Voting Common Stock of USCB, $1.00 par value per share, and the shares
of Class B Non-Voting Common Stock of USCB, $1.00 par value per share. 
 (z) “Voting
Securities” means at any time shares of any class of capital stock of Parent that are then entitled to vote generally in the election of directors. 

2. Governance Matters. 

(a) Parent shall maintain its Board of Directors (the “Board of Directors”) at not less than five nor more than seven directors. At
the Effective Time, Parent will promptly cause one person nominated by each Large Investor (each, a “Board Representative”) to be elected or appointed to the Board of Directors, subject to satisfaction of all legal and governance
requirements regarding service as a director of Parent, which Board Representative shall initially be Howard Feinglass for Priam and W. Kirk Wycoff for Patriot. After such appointment, so long as a Large Investor and its Affiliates collectively
beneficially own shares of Parent Common Stock representing 50% or more of the shares of USCB Common Stock purchased by such Large Investor in the Offering (as adjusted from time to time for any reorganization, including the Reorganization,
recapitalization, stock dividend, stock split, reverse stock split, or other like changes in the capitalization of USCB or Parent), Parent will be required to recommend to its shareholders the election of such Large Investor’s Board
Representative at each Parent’s annual meeting, subject to satisfaction of all legal and governance requirements regarding service as a director of Parent, to the Board of Directors. If either Large Investor and its Affiliates collectively no
longer beneficially own the minimum number of shares of USCB Common Stock specified in or calculated by the prior sentence, such Large Investor will have no further rights under Sections 2(a)-(d). 

(b) Each Board Representative (including any replacement thereof) duly selected in accordance with Section 2(a) shall, subject to
applicable Law, be one of Parent’s and Parent’s Nominating and Governance Committee’s nominees to serve on the Board of Directors at each of Parent’s annual meetings. Parent shall use its reasonable best efforts to have the Board
Representative elected as a director of Parent at each of Parent’s annual meeting and Parent shall solicit proxies for each such person to the same extent as it does for any of its other nominees to the Board of Directors (and vote all
unrestricted proxies in favor of the election of such Board Representative). 

  
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 (c) Each Board Representative shall, subject to satisfaction of all legal, bank regulatory,
securities listing and governance requirements, be appointed to two committees of Parent’s Board of Directors identified by the applicable Large Investor. Independent directors shall constitute at least 50% of the membership of any committee of
which a Board Representative is a member. 
 (d) Subject to Section 2(a), each Large Investor shall have the power to designate its
Board Representative’s replacement upon the death, resignation, retirement, disqualification or removal from office of such director, subject to satisfaction of all legal and governance requirements regarding service as a director of Parent.
The Board of Directors will promptly take all action reasonably required to fill the vacancy resulting therefrom with such person (including such person, subject to applicable law, being Parent’s and Parent’s Nominating and Governance
Committee’s nominee to serve on the Board of Directors, using all reasonable best efforts to have such person elected or appointed as director of Parent and Parent soliciting proxies for such person to the same extent as it does for any of its
other nominees to the Board of Directors). 
 (e) Parent hereby agrees that, from and after the Effective Time, for so long as a Large
Investor and its Affiliates collectively beneficially own shares of Parent Common Stock representing 50% or more of the shares of USCB Common Stock purchased by such Large Investor in the Offering (as adjusted from time to time for any
reorganization, including the Reorganization, recapitalization, stock dividend, stock split, reverse stock split, or other like changes in the capitalization of USCB or Parent), Parent shall, subject to applicable Law, invite a person designated by
such Large Investor (each, a “Board Observer”) to attend meetings of the Board of Directors (and any meetings of committees of which the applicable Board Representative is a member or, if the applicable Large Investor does not have a Board
Representative on the Board of Directors, such committees as agreed to between such Large Investor and Parent) in a nonvoting observer capacity; provided, that a Board Observer may only attend any such meeting if the applicable Board Representative
is unable to attend such meeting or if the applicable Large Investor does not have a Board Representative on the Board of Directors on the date of such meeting. 

(f) Each Board Representative shall be entitled to the same compensation and same indemnification in connection with his or her role as a
director of Parent as the other members of the Board of Directors, and each Board Representative and Board Observer shall be entitled to reimbursement for documented, reasonable
out-of-pocket expenses incurred in attending meetings of the Board of Directors or any committees thereof, to the same extent as the other members of the Board of
Directors. Parent shall notify the Board Representative and the Board Observer of all regular and special meetings of the Board of Directors and shall notify the Board Representative and the Board Observer of all regular and special meetings of any
committee of the Board of Directors of which the Board Representative is a member. Parent shall provide the Board Representative and the Board Observer with copies of all notices, minutes, consents and other materials provided to all other members
of the Board of Directors concurrently as such materials are provided to the other members of the Board of Directors. 

  
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 (g) Parent acknowledges that each Board Representative (an “Investor Indemnitee”)
may have certain rights to indemnification, advancement of expenses and/or insurance provided by the Large Investor and/or certain of its Affiliates (collectively, the “Investor Indemnitors”). Parent hereby agrees (1) that it is the
indemnitor of first resort (i.e., its obligations to each Investor Indemnitee are primary and any obligation of Investor Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by any Investor
Indemnitee are secondary), and (2) that it shall be required to advance the full amount of expenses incurred by each Investor Indemnitee and shall be liable for the full amount of all expenses and liabilities, in each case, to the extent
legally permitted and as required by the terms of this Side Letter Agreement and the Organizational Documents of Parent (and any other agreement regarding indemnification between Parent and any Investor Indemnitee), without regard to any rights an
Investor Indemnitee may have against any Investor Indemnitor. Parent further agrees that no advancement or payment by any Investor Indemnitor on behalf of any Investor Indemnitee with respect to any claim for which such Investor Indemnitee has
sought indemnification from Parent shall affect the foregoing and the Investor Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such Investor
Indemnitee against Parent. The parties hereto agree that the Investor Indemnitors are express third party beneficiaries of the terms of this Section 2(g). 

(h) Parent hereby agrees that it shall not amend its Organizational Documents in a manner that adversely affects the rights or preferences of
the Large Investors set forth in this Section 2. 
 (i) During the period during which a Large Investor is entitled to a Board
Representative, such Large Investor shall also be entitled to a representative (the “USCB Board Representative”) on USCB’s Board of Directors (the “USCB Board of Directors”) and to a board observer (the “USCB Board
Observer”) with respect to the USCB Board of Directors and the committees thereof to the same degree as provided in Sections 2(a)-(e). To the extent applicable, all the provisions of this Section 2 shall apply with respect to said USCB
Board Representative and USCB Board Observer. 
 3. Access to Information. 

(a) Parent agrees to disclose and to make available to the Large Investors all books, papers and records (in any medium) relating to the
assets, properties, operations, obligations and liabilities of Parent (including, for the avoidance of doubt, the Parent Subsidiaries) as either Large Investor may reasonably request including, but not limited to, copies of all leases (with
designation of any shareholders or principals of Parent or USCB that have an interest in the landlord) and abstracts thereof, budgets, financial statements, delinquency reports, CAM and real estate tax billings, surveys, environmental reports, title
policies, environmental inspections, tenant sales reports, guarantor tax returns and personal financial statements, development plans and entitlements and building plans; provided, that nothing in this Side Letter Agreement shall require the
furnishing of any information which by applicable Law may not be made available to the Large Investors, or any information which would place at risk the ability of Parent or its attorneys to claim attorney-client privilege or work product privilege
with respect to any third parties (it being understood and agreed that the foregoing shall not limit disclosure of such information to a Board Representative of a Large Investor, unless the same considerations would apply to the Board Representative
in his or her capacity as such); provided, further, that the parties shall make reasonable substitute disclosure arrangements in the 

  
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circumstances in which the foregoing restrictions apply, including redacting applicable portions of information. Upon reasonable notice, Parent shall make the information described above in this
Section 3(a) available to the Large Investors both during and after regular business hours. Notwithstanding anything in this Side Letter Agreement to the contrary, the Large Investors shall not have and agree not to seek access to any
information or materials regarding the bids leading to the Investment Agreement and the transactions contemplated by the Investment Agreement and the Offering, or to any bid or offer between January 1, 2014 and the date of the consummation of
the transactions contemplated by the Investment Agreement and the Offering to invest in USCB, regardless of the medium or format of such information and regardless by whom it is prepared. 

(b) Each of the parties agrees that it shall, and shall advise its respective Affiliates and each of its respective officers, directors,
employees, financial advisors, consultants and agents to, hold in strict confidence and not disclose, and not to use for any purpose other than the Large Investors’ investment in Parent Common Stock, any material information about each other,
or any information relating to any past, current, or prospective customer or transaction with any Person (collectively, the “Subject Information”), whether written or oral, that the one party, its respective Affiliates and officers,
directors, employees, financial advisors, consultants and agents receives from the other party or is made privy to, and which is not publicly available, including the terms of this Side Letter Agreement, except as may be required by Law or by any
Governmental Authority; provided, that each party hereto shall be permitted to disclose Subject Information to the extent necessary for the enforcement of any right of such party arising under this Side Letter Agreement. Notwithstanding the
foregoing, to the extent necessary to carry out the Large Investors’ investment in Parent Common Stock, each party may disclose Subject Information concerning the other party to its attorneys, accountants, financial advisors and other
consultants, so long as such recipients agree or are required by rules governing their profession to keep such Subject Information confidential on the terms set forth herein, and Parent and USCB may disclose the terms of this Side Letter Agreement
to their shareholders in seeking their vote in favor of the Reorganization. The term “Subject Information” does not include any information that (i) at the time of disclosure or thereafter is generally available to the public,
(ii) is obtained on a non-confidential basis from a source other than the party to which it relates, or (iii) is independently acquired or developed without violating any obligation under this Side
Letter Agreement. The provisions of this Section 3(b) shall survive the termination of this Side Letter Agreement. 
 (c) Each of the
parties shall, and shall cause its respective advisors and representatives to, conduct its activities under this Section 3 in such a manner that they will not unreasonably interfere with the normal operations, customers or employee relations of
the other parties and their respective Subsidiaries. 
 4. Financial Statements. In addition to any other information requested in
accordance with Section 3, Parent shall furnish to the Large Investors as soon as reasonably practicable after they become available, and in no event later than one Business Day after their delivery to the Board of Directors or Chief Executive
Officer of Parent, (i) monthly unaudited consolidated financial statements of Parent and the Parent Subsidiaries (including balance sheet, income statement and statement of changes in shareholders’ equity), (ii) quarterly unaudited
consolidated financial statements of Parent and the Parent Subsidiaries (including balance sheet, income statement and statement of changes in shareholders’ equity) and (iii) copies of any internal management reports prepared by Parent or
any Parent Subsidiary relating to the foregoing or their respective business operations. 

  
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 5. Matching Stock Rights. 

(a) Each Large Investor shall have the right to, or shall at any time and from time to time, appoint an Affiliate of such Large Investor (who
may or may not be a shareholder of Parent) that agrees in writing for the benefit of Parent to be bound by the terms of this Side Letter Agreement (any such Affiliate shall be included in the term “Large Investor”), to exercise the
subscription rights set forth in this Section 5 (such Large Investor or such Affiliate, a “Subscription Entity”). If at any time following the Effective Time, for so long as such Large Investor and its Affiliates collectively
beneficially own shares of Parent Common Stock representing 50% or more of the shares of USCB Common Stock purchased by such Large Investor in the Offering (as adjusted from time to time for any reorganization, including the Reorganization,
recapitalization, stock dividend, stock split, reverse stock split, or other like changes in the capitalization of USCB or Parent) (before giving effect to any issuances triggering the provisions of this Section 5), Parent, at any time or from
time to time, makes any public or non-public offering of any equity (including Parent Common Stock, preferred stock and restricted stock), or any securities or options that are convertible or exchangeable into
equity or that include an equity component (such as an “equity kicker”) (including any hybrid security) (any such security a “New Security”) (other than (1) pursuant to the granting or exercise of employee stock options or
other equity incentives to employees or directors pursuant to Parent’s stock incentive plans or the issuance of stock pursuant to any employee stock purchase plan, in each case in the ordinary course of equity compensation awards and to the
extent approved by the Board of Directors, (2) issuances of any securities issued as a result of a stock split, stock dividend, reclassification or reorganization or similar event, but solely to the extent such issuance is made to all holders
of Parent Common Stock, in each case, approved by the Board of Directors and (3) issuances of Parent’s Class A Voting Common Stock in connection with the conversion upon transfer of shares of Parent’s Class B Non-Voting Common Stock, in accordance with the applicable provisions of the Articles of Incorporation of Parent), the Subscription Entity shall be afforded the opportunity to acquire from Parent for the same price
(net of any underwriting discounts or sales commissions) and on the same terms (except that the Subscription Entity may elect to receive such securities in non-voting form) as such securities are proposed to
be offered to others, up to the amount of New Securities in the aggregate required to enable it to maintain its proportionate Parent Common Stock-equivalent interest (with respect to each class of Parent Common Stock) and its proportionate interest
in any other class of equity securities of Parent (including preferred stock) in Parent; provided, that such Large Investor shall not be entitled to acquire securities pursuant to this Section 5 if such acquisition would cause or would result
in such Large Investor and its Affiliates, collectively, (i) being deemed to own, control or have the power to vote, for purposes of the BHC Act, the CBCA or other applicable Laws and any rules and regulations promulgated thereunder, 25% or
more of any class of “voting securities” (as defined in the BHC Act and any rules or regulations promulgated thereunder) of Parent outstanding at such time (it being understood, for the avoidance of doubt, that no security shall be
included in any such percentage calculation to the extent it cannot by its terms be converted into or exercisable for voting securities by the Subscription Entity or its Affiliates) or (ii) being deemed to own or control more than 33.3% of the
total equity of Parent. Subject to the 

  
 8 

 
foregoing proviso, in the case of a class of equity securities being offered as New Securities that is other than Parent’s Class A Voting Common Stock or Class B Non-Voting Common Stock, the amount of such New Securities that the Subscription Entity shall be entitled to purchase in the aggregate shall be determined by multiplying (x) the total number of such offered
shares of New Securities by (y) the percentage of total equity of Parent held by such Large Investor and its Affiliates as of such date. For the avoidance of doubt, to the extent that Parent complies with its obligations pursuant to this
Section 5 with respect to any securities that are convertible or exchangeable into (or exercisable for) equity securities of Parent, the Subscription Entity shall not have an additional right to purchase pursuant to this Section 5
additional securities as a result of the issuance of New Securities upon the conversion, exchange or exercise of such earlier issued securities (whether or not such Large Investor exercised its right to purchase such earlier issued securities). 

(b) In the event Parent proposes to offer New Securities, it shall give the Subscription Entity written notice of its intention, describing
the price (or range of prices), anticipated amount of securities, timing and other terms upon which Parent proposes to offer the same (including, in the case of a registered public offering and to the extent possible, a copy of the prospectus
included in the registration statement filed with respect to such offering) no later than five Business Days, as the case may be, after the initial filing of a registration statement with the Securities and Exchange Commission (the “SEC) with
respect to an underwritten public offering or after Parent proposes to pursue any other offering; provided, that for purposes of this Section 5, in addition to providing notice to the Subscription Entity in accordance with Section 10,
Parent shall use its reasonable best efforts to effect actual notice to the Subscription Entity as promptly as practicable, including via telephone and/or electronic mail. Parent may provide such notice to the Subscription Entity on a confidential
basis prior to public disclosure of such offering. The Subscription Entity shall have ten Business Days from the date of receipt of such notice to notify Parent in writing whether it will exercise such subscription rights and as to the amount of New
Securities the Subscription Entity desires to purchase, up to the maximum amount calculated pursuant to Section 5(a). Such notice shall constitute a binding commitment by the Subscription Entity to purchase the amount of New Securities so
specified at the price and other terms set forth in Parent’s notice to it and subject to other customary closing conditions. The failure of Subscription Entity to respond within such ten Business Day period shall be deemed to be a waiver of
Subscription Entity’s rights under this Section 5 only with respect to the offering described in the applicable notice. 
 (c) If
the Subscription Entity exercises its subscription rights provided in this Section 5, the closing of the purchase of the New Securities with respect to which such right has been exercised shall take place as soon as reasonably possible after
the giving of notice of such exercise, taking into account the need to comply with applicable Laws (including receipt of any necessary regulatory or shareholder approvals). Each of Parent and the Subscription Entity agrees to use its commercially
reasonable efforts to secure any regulatory or shareholder approvals or other consents, and to comply with any Law necessary in connection with the offer, sale and purchase of such New Securities, including calling a meeting of Parent’s
shareholders to vote on any matters requiring shareholder approval in connection with the offer, sale and purchase of such New Securities (the “Subscription Proposals”), recommending to Parent’s shareholders that such shareholders
vote in favor of any Subscription Proposals and soliciting proxies for approval of any Subscription Proposals. 

  
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 (d) In the event the Subscription Entity fails to exercise its subscription rights provided
in this Section 5 within said ten Business Day period, or, if so exercised, the Subscription Entity is unable to consummate such purchase within the time period specified in Section 5(c) above for any reason, Parent shall thereafter be
entitled during the period of 60 days following the conclusion of the applicable period to sell or enter into an agreement (pursuant to which the sale of the New Securities covered thereby shall be consummated, if at all, within 30 days from the
date of said agreement) to sell the New Securities not elected to be purchased pursuant to this Section 5 or which the Subscription Entity does not or is unable to purchase, at a price and upon terms no more favorable to purchasers of such
securities than were specified in Parent’s notice to the Subscription Entity. Notwithstanding the foregoing, if such sale is subject to the receipt of any regulatory or shareholder approval or consent or the expiration of any waiting period,
the time period during which such sale may be consummated shall be extended until the expiration of five Business Days after all such approvals or consents have been obtained or waiting periods expired, but in no event shall such time period exceed
120 days from the date of the applicable agreement with respect to such sale. In the event Parent has not sold the New Securities or entered into an agreement to sell the New Securities within said 60-day
period (or sold and issued New Securities in accordance with the foregoing within 30 days from the date of said agreement (as such period may be extended in the manner described above for a period not to exceed 120 days from the date of said
agreement)), Parent shall not thereafter offer, issue or sell such New Securities without first offering such securities to the Subscription Entity in the manner provided above. 

(e) In the case of the offering of securities for consideration in whole or in part other than cash, including securities acquired in exchange
therefor (other than securities by their terms so exchangeable), the consideration other than cash shall be deemed to be the fair value thereof as determined by the Board of Directors; provided, that such fair value as determined by the Board of
Directors shall not exceed the aggregate market price of the securities being offered as of the date the Board of Directors authorizes the offering of such securities. 

(f) Parent and the Large Investors shall cooperate in good faith to facilitate the exercise of either Large Investor’s rights pursuant to
this Section 5, including securing any required approvals or consents. 
 (g) Notwithstanding the foregoing provisions of this
Section 5, in the event that New Securities are to be offered or issued by Parent at the written direction of the applicable federal banking regulator of Parent, Parent may proceed to complete such issuance prior to the expiration of such time
periods, so long as provision is made in such issuance such that subsequent to the time periods set forth in Section 5(b) and Section 5(c) either (i) purchaser(s) of such New Securities will be obligated to transfer that portion of
such New Securities to any Subscription Entity properly electing to participate in such issuance pursuant to this Section 5 sufficient to satisfy the terms of this Section 5 or (ii) Parent shall issue an incremental amount of such New
Securities to those Subscription Entities properly electing to participate in such issuance pursuant to this Section 5 sufficient to satisfy the terms of this Section 5. 

  
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 6. Corporate Opportunities. Each of the parties hereto acknowledges that the Large
Investors and their respective Affiliates and related investment funds may review the business plans and related proprietary information of any enterprise, including enterprises which may have products or services which compete directly or
indirectly with those of Parent and Parent Subsidiaries, and may trade in the securities of such enterprise. Neither of the Large Investors, nor any of their respective Affiliates or related investment funds shall be precluded or in any way
restricted from investing or participating in any particular enterprise, or trading in the securities thereof whether or not such enterprise has products or services that compete with those of Parent and Parent Subsidiaries. The parties expressly
acknowledge and agree that: (a) the Large Investors, the Board Representatives, the Board Observers and Affiliates of the Large Investors have the right to, and shall have no duty (contractual or otherwise) not to, directly or indirectly,
engage in the same or similar business activities or lines of business as Parent and Parent Subsidiaries; and (b) in the event that a Large Investor, a Board Representative, a Board Observer or any Affiliate of a Large Investor acquires
knowledge of a potential transaction or matter that may be a corporate opportunity for Parent or any of Parent Subsidiaries, such Large Investor, Board Representative, Board Observer or such Affiliate shall have no duty (contractual or otherwise) to
communicate or present such corporate opportunity to Parent or any of the Parent Subsidiaries, and, notwithstanding any provision of this Side Letter Agreement to the contrary, shall not be liable to Parent or any of the Parent Subsidiaries or the
shareholders of Parent for breach of any duty (contractual or otherwise) by reason of the fact that the Large Investor, Board Representative, Board Observer or any Affiliate of such Large Investor or related investment fund thereof, directly or
indirectly, pursues or acquires such opportunity for itself, directs such opportunity to another person, or does not present such opportunity to Parent. 

7. Avoidance of Control. Notwithstanding anything to the contrary in this Side Letter Agreement or in any other agreement, neither
Parent nor any Parent Subsidiary shall take any action (including any redemption, repurchase, or recapitalization of Parent Common Stock, or securities or rights, options or warrants to purchase Parent Common Stock, or securities of any type
whatsoever that are, or may become, convertible into or exchangeable into or exercisable for Parent Common Stock), in each case, (x) that would cause any Large Investor or any other Person to control one third or more of the total equity of
Parent for purposes of the BHC Act or its implementing regulations, or (y) that would cause any Large Investor or any other Person to “control,” or be presumed to “control,” Parent under and for purposes of the BHC Act
or any rules or regulations promulgated thereunder (or any successor provisions); provided, that Parent shall not be deemed to have breached this Section 7 if Parent or any Parent Subsidiary effects a redemption, repurchase or recapitalization
and Parent has given such Large Investor the opportunity to participate in such redemption, repurchase or recapitalization to the extent of such Large Investor’s pro rata proportion on the same terms as the other participants in such
redemption, repurchase or recapitalization and such Large Investor fails to so participate. In the event Parent breaches its obligations under this Section 7 or believes that it is reasonably likely to breach such an obligation, it shall
promptly notify such Large Investor and shall cooperate in good faith with such Large Investor to modify ownership or make other arrangements or take any other action, in each case, as is necessary to cure or avoid such breach. 

8. ERISA Matters. Subject to Parent’s reasonable restriction on the use and disclosure of information and Parent’s right to
limit such disclosure to comply with applicable Laws and to protect any attorney-client privilege, subject to Section 3, and without limitation or prejudice of any of the rights provided to the Large Investors under this Side Letter Agreement,
each Large Investor and, at the written request of a Large Investor, each Affiliate of such Large 

  
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Investor that indirectly has an interest in the any shares of capital stock, voting securities or other equity interests of Parent or any securities or obligations convertible into or
exchangeable into or exercisable for any shares of capital stock, voting securities or other equity interests of Parent through such Large Investor, in each case that is intended to qualify as a “venture capital operating company” (a
“VCOC”) as defined in the U.S. Department of Labor Regulations codified at 29 C.F.R. Section 2510.3-101 (each, a “VCOC Investor”), will have customary and appropriate VCOC rights
relating to inspection, information and consultation with respect to Parent (including customary consultation, inspection and access rights at mutually agreeable times (but not more frequently than quarterly), and rights to receive written materials
prepared for distribution to members of the Board of Directors at the regularly scheduled Board of Directors meetings (“Board Papers”); provided, that Parent reserves the right to exclude such VCOC Investor from access to any Board Papers
or meeting or portion thereof if Parent believes that such exclusion is reasonably necessary to preserve the attorney-client privilege, to protect confidential proprietary information, to comply with regulatory restrictions, or for other similar
reasons), and the right to audited and unaudited financial statements; provided, that Parent shall be under no obligation to provide the VCOC Investor with any material non-public information with respect to
future corporate actions; provided, further, that nothing herein shall entitle more than one Affiliate of a Large Investor to the rights under this Section 8 without the consent of Parent. Parent agrees to consider, in good faith, the
recommendations of the VCOC Investor or its designated representative in connection with the matters on which it is consulted as described above, recognizing that the ultimate discretion with respect to all such matters shall be retained by Parent.
The right of any Person to receive information or access hereunder shall be subject to such Person agreeing or being required by rules governing their profession to keep such information confidential on the terms set forth herein. 

9. Information Rights. 

(a) Parent shall permit the Large Investors and their respective directors, officers, employees, advisers, agents or representatives to have
access to, or to examine or inspect, the general statement of condition of Parent’s general assets and liabilities and a list of shareholders as provided by Section 607.1601 of the Florida Statutes. 

(b) At any time during which Parent is not required to file annual, quarterly and periodic reports with the SEC pursuant to Section 13 or
15(d) of the Exchange Act, Parent will furnish to each Large Investor, as soon as practicable, but in any event within one hundred twenty (120) days after the end of each fiscal year of Parent, (i) a consolidated balance sheet of Parent
and the Parent Subsidiaries as of the end of such fiscal year and statements of operations, changes in capital and a statement of cash flows for such fiscal year, such year-end financial reports to be prepared
in accordance with GAAP consistently applied and audited and certified by independent public accountants of nationally recognized standing selected by Parent, together with a comparison of the figures in such financial statements with the figures
for the previous fiscal year and the figures in Parent’s annual operating budget and (ii) any management letters or other similar correspondence from such accountants. 

  
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 (c) At any time during which Parent is not required to file annual, quarterly and periodic
reports with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, Parent will furnish to each Large Investor, as soon as practicable, but in any event within forty-five (45) days after the end of each of the first three
(3) quarters of each fiscal year of Parent, an unaudited consolidated balance sheet of Parent and the Parent Subsidiaries as of the end of such fiscal quarter and statements of operations, changes in capital and a statement of cash flows for
such fiscal quarter, in each case prepared in accordance with GAAP consistently applied. 
 10. Notices. All notices, requests,
claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by email, by facsimile or by registered or certified mail (postage prepaid,
return receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be specified by like notice): 

If to Parent or USCB: 
 c/o
U.S. Century Bank 
 2301 N.W. 87th Ave. 

Doral, FL 33172 
 Attention: Luis
de la Aguilera, President & Chief Executive Officer 
 Facsimile:
305-594-3411 

e-mail: Laguilera@uscentury.com 

with a copy (which shall not constitute notice) to: 

Squire Patton Boggs (US) LLP 

2550 M Street, NW 
 Washington, DC
20037 
 Attention: James J. Barresi 

Facsimile: 202-457-6315 

email: james.barresi@squirepb.com 

If to Priam: 
 c/o Priam
Capital Associates, LLC 
 445 Park Avenue, Suite 1401 

New York, NY 10022 
 Attn: Howard
Feinglass; Andrew Goldman 
 Facsimile: 212-688-1347 

email: Agoldman@priamcapital.com; Hfeinglass@priamcapital.com 

with a copy (which shall not constitute notice) to: 

Skadden, Arps, Slate, Meagher & Flom LLP 

1440 New York Avenue, N.W. 

Washington, D.C. 20005 
 Attn:
Brian D. Christiansen 
 Facsimile: 202-661-9154 

email: brian.christiansen@skadden.com 

  
 13 

 If to Patriot: 

c/o Patriot Financial Partners II, LP 

Four Radnor Corporate Center, Suite 210 

100 Matsonford Road 
 Radnor, PA
19087 
 Attention: W. Kirk Wycoff 

Facsimile: 215-399-4665 

email: kwycoff@patriotfp.com 

with a copy (which shall not constitute notice) to: 

Silver, Freedman, Taff & Tiernan LLP 

3299 K Street, N.W. Suite 100 

Washington, DC 20007-4444 

Attention: Philip R. (Ross) Bevan 

Facsimile: 202-337-5502 

email: rbeva@sfttlaw.com 
 11.
Counterparts. This Side Letter Agreement may be executed in one or more counterparts (including by facsimile, electronic mail, or other means of electronic signature), each of which shall be deemed to constitute an original, but all of which
together shall constitute one and the same instrument. 
 12. Governing Law and Venue; Waiver of Jury Trial. 

(a) This Side Letter Agreement shall be deemed to be made in and in all respects shall be interpreted, construed and governed by and in
accordance with the laws of the State of New York. In addition, each of the parties to this Side Letter Agreement (i) consents to submit itself to the exclusive personal jurisdiction of a New York state or federal court sitting in the Borough
of Manhattan, State of New York in the event any dispute arises out of this Side Letter Agreement or any of the offering contemplated by this Side Letter Agreement, (ii) agrees that it will not attempt to deny or defeat such personal
jurisdiction by motion or other request for leave from any such court, (iii) agrees that it will not bring any action relating to this Side Letter Agreement in any court other than a New York state or federal court sitting in the Borough of
Manhattan, State of New York, and (iv) consents to service being made through the mail (not e-mail or facsimile) or courier as set forth in Section 10, such service to be effective ten days after
posting if mailed, or upon delivery if by courier. 
 (b) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS
SIDE LETTER AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS SIDE LETTER AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS 

  
 14 

 
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE
IMPLICATIONS OF THIS WAIVER, (III) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS SIDE LETTER AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11(B).

 (c) In any dispute or action between the parties arising out of this Side Letter Agreement, including any litigation, arbitration, and
appellate proceedings (and efforts to enforce the judgment, award or other disposition of any of the same), including with respect to any claim for indemnification, the prevailing party shall be entitled to have and recover from the other party all
fees, costs and expenses incurred in connection with such dispute or action (including reasonable attorneys’ fees). 
 13.
Severability. If any term or other provision of this Side Letter Agreement is invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of this Side Letter Agreement shall
nevertheless remain in full force and effect so long as the economic or legal substance of this Side Letter Agreement are not affected in any manner adverse to any party. Upon such determination that any term or other provision is invalid, illegal
or incapable of being enforced, the parties to this Side Letter Agreement shall negotiate in good faith to modify this Side Letter Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end
that such original intent is fulfilled to the fullest extent possible. 
 14. Effect. No provision of this Side Letter Agreement
shall be construed to require the Large Investors, USCB, Parent or any of their respective Affiliates, officers or directors to take any action or omit to take any action which action or omission would violate applicable Law. 

15. Assignment. This Side Letter Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their
respective successors and permitted assigns. Parent shall not assign or delegate, in whole or in part, this Side Letter Agreement or any rights or obligations under this Side Letter Agreement. No Large Investor may assign its rights or delegate its
obligations under this Side Letter Agreement without the prior written consent of Parent; provided, that each Large Investor may assign its rights and obligations under this Side Letter Agreement to any Affiliate, but only if the transferee agrees
in writing for the benefit of Parent (with a copy thereof to be furnished to Parent) to be bound by the terms of this Side Letter Agreement (any such transferee shall be included in the term “Large Investor”). 

16. Independent Nature of Large Investors’ Obligations and Rights. The rights and obligations of each Large Investor under this
Side Letter Agreement are several and not joint with the rights and obligations of the other Large Investor, and each Large Investor shall not be responsible in any way for the performance of the obligations of the other Large Investor. Nothing
contained herein, and no action taken by either Large Investor pursuant hereto, shall be deemed to constitute the Large Investors as, and each of USCB and Parent acknowledges that the Large Investors do not so constitute, a partnership, an
association, a joint venture or any other 

  
 15 

 
kind of group or entity, or create a presumption that the Large Investors are in any way acting in concert or as a group or entity with respect to such obligations. Each Large Investor represents
and warrants, severally and not jointly, to USCB and Parent that such Large Investor has acted independently of, and not in concert with, the other Large Investor in entering into this Side Letter Agreement, and each of USCB and Parent acknowledges
that its dealings and negotiations with each Large Investor have been on an investor-by-investor basis. Each Large Investor further acknowledges, severally and not
jointly, that no Large Investor has acted or will act or be obligated to act as agent or fiduciary for or representative of the other Large Investor in connection with this Side Letter Agreement. Each Large Investor shall be entitled to
independently protect and enforce its own rights, including the rights arising out of this Side Letter Agreement, and it shall not be necessary for the other Large Investor to be joined as an additional party in any proceeding for such purpose. The
use of a single agreement to document the rights of the Large Investors hereunder is solely for convenience. It is expressly understood and agreed that each provision contained in this Side Letter Agreement is between USCB and Parent, on the one
hand, and each Large Investor, solely, on the other hand, and not between USCB and Parent, on the one hand, and the Large Investors collectively on the other end, and also not between and among the Large Investors. 

17. Captions. The article, section, paragraph and clause captions herein are for convenience of reference only, do not constitute part
of this Side Letter Agreement and will not be deemed to limit or otherwise affect any of the provisions hereof. 
 [REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK] 

  
 16 

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

			
	USCB Financial Holdings, Inc.
		
	By:	 	/s/ Luis de la Aguilera
	Name: Luis de la Aguilera
	Title: President/CEO

  

			
	 U.S. Century Bank

		
	By:	 	/s/ Luis de la Aguilera
	Name: Luis de la Aguilera
	Title: President/CEO

 Agreed and acknowledged as of the date first above written: 

 

			
	 Priam Capital Fund II, LP

		
	By:	 	 /s/ Howard Feinglass

	 Name: Howard Feinglass

	 Title: Member

  

			
	 Patriot Financial Partners II, L.P.

		
	By:	 	 /s/ W. Kirk Wycoff

	 Name: W. Kirk Wycoff

	 Title: Managing Partner

  

			
	 Patriot Financial Partners Parallel II, L.P.

		
	By:	 	 /s/ W. Kirk Wycoff

	 Name: W. Kirk Wycoff

	 Title: Managing Partner

 [Signature Page to Side Letter Agreement]

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