Document:

Exhibit 10.7

 

PROFESSIONAL HOLDING CORP.

2014 SHARE APPRECIATION RIGHTS
PLAN

 

Professional
Holding Corp., a registered bank holding company organized under the laws of the State of Florida (“Corporation”),
hereby adopts this 2014 Share Appreciation Rights Plan (“Plan”) through its Board of Directors for benefit of
its employees and for the benefit of the employees of Professional Bank (“Bank”), its wholly owned subsidiary,
effective as of October 21, 2014, (“Effective Date”) (Corporation and Bank are collectively referred to as “Company”).

 

1.               
Purpose. The purpose of the Plan is to further the growth, development and financial success of the Company
by providing appropriate incentives to certain key employees who have been or will be given responsibility for the management
or administration of the business affairs; to provide for distinct plans for operating management in order to maximize incentives
offered while minimizing expenses; and to enable the Company to obtain and retain the services of the type of professional, technical
and managerial employees considered essential to both the Company’s long-range success. This Plan shall be separate and distinct
from the Professional Bank 2012 Share Appreciation Rights Plan.

 

2.               
Definitions.

 

(a)              
“Base Price” shall mean the Fair Market Value of a Unit at the time of the Grant.

 

(b)              
“Board” shall mean the Board of Directors of the Corporation.

 

(c)              
“Change in Control” shall mean any one of the following events with respect to the Company (and as pertains
to either the Corporation or the Bank):

 

(i)                
“Change in the Ownership of the Company” that occurs on the date that any one person, or more than one person
acting as a group acquires ownership of Common Stock of the Company that, together with Common Stock held by such person or group,
constitutes more than 50 percent of the total fair market value or total voting power of the Common Stock of the Company. However,
if any one person, or more than one person acting as a group, is considered to own more than 50 percent of the total fair market
value or total voting power of the Common Stock of the Company (or such higher percentage specified in accordance with the preceding
sentence), the acquisition of additional Common Stock by the same person or persons is not considered to cause a change in the
ownership of the Company (or to cause a change in the effective control of the Company. An increase in the percentage of Common
Stock owned by any one person, or persons acting as a group, as a result of a transaction in which the Company acquires its Common
Stock in exchange for property will be treated as an acquisition of Common Stock for purposes of this section. This section applies
only when there is a transfer of Common Stock of the Company (or issuance of Common Stock of a Company) and Common Stock in the
Company remains outstanding after the transaction; or

 

(ii)              
“Change in the Effective Control of the Company” that occurs only on either of the following dates:

 

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(1)              
The date any one person, or more than one person acting as a group acquires (or has acquired during the 12-month period
ending on the date of the most recent acquisition by such person or persons) ownership of Common Stock of the corporation possessing
30 percent or more of the total voting power of the Common Stock of such corporation, or

 

(2)              
The date a majority of members of the Company’s Board is replaced during any 12-month period by directors whose appointment
or election is not endorsed by a majority of the members of the Company’s Board before the date of the appointment or election;
or

 

(iii)              
 “Change in the Ownership of a Substantial Portion of a Company’s Assets” occurs on the date that any one person, or
more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than
40 percent of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions.

 

(d)              
“Chairman” shall mean the Chairman of the Board of the Corporation, as elected from time to time.

 

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

 

(f)               
“Committee” shall mean the Compensation Committee of the Corporation, which shall be the administrative
committee for the Plan (the “Committee”); provided, that to the extent required by Rule 16b-3 of the Securities and
Exchange Commission under the Exchange Act, such Committee shall be comprised solely of two or more Non-Employee Directors, as
defined in Rule 16b-3(b)(3) under the Exchange Act. All references in this Plan to the “Committee” shall mean the Board
if no Committee has been appointed.

 

(g)              
“Common Stock” shall mean the Class A Common Stock of the Corporation, $0.01 par value per share.

 

(h)              
“Company” shall mean the Corporation and/or the Bank as the case may be in the context used as to all
provisions of this Plan.

 

(i)                
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

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(j)                 “Fair
Market Value” shall mean (1) the closing price of the Common Stock on the principal national securities exchange on
which the Common Stock is traded, if the Common Stock is then traded on a national securities exchange; or (2) the closing
price of the Common Stock on the Nasdaq National Market, if the Common Stock is not then traded on a national
securities exchange; or (3) the closing bid price last quoted by an established quotation service for over-the-counter
securities, if the Common Stock is not reported on the Nasdaq National Market. However, if the Common Stock is not
publicly-traded, “Fair Market Value” shall be deemed to be the fair value of the Common Stock as determined by the
Committee after taking into consideration all factors which it deems appropriate, including, without limitation, recent sale
and offer prices of the Common Stock in private transactions negotiated at arm’s length consistent with the provisions of
Regulation 1.409A-1(b)(5)(iv)(B). The Fair Market Value of the Common Stock shall be determined consistently once every 365
days during which period the Fair Market Value so determined shall be used for all purposes of this Plan; provided, however,
the Committee may select an interim valuation date on a nondiscriminatory basis it its discretion if and when it deems
necessary. Notwithstanding the foregoing, the Committee’s determination of the Fair Market Value of Common Stock under this
Plan shall not take into consideration any amounts paid by the Company to Shareholders in redemption of Common Stock. In
addition, the Committee may use any other alternate valuation methods for separate actions for which a valuation is relevant
provided that a single valuation method is used for each separate action and, once used, may not retroactively be altered
once the valuation has been established, as contemplated in Regulation 1.409A-1(b)(5)(iv)(B)(3).

 

(k)                
“Grant Date” shall mean, with respect to any individual Participant, the date such Participant has executed a
separate Unit Agreement pursuant to the terms of this Plan.

 

(1)                
“Liquidity Event” shall mean an event that triggers an exit opportunity for holders of the Common Stock of
the Corporation or the holders of the common stock of the Bank (depending on the nature of the sales transaction) to
liquidate their stock holdings through a transaction with the Corporation or with the Bank that (A) results in the receipt of
cash or securities by either (i) the Corporation for Bank’s common stock or (ii) by the Corporation’s Shareholders for their
Common Stock and provided (B) the receipt of cash or securities in (A) occurs in the same transaction in which a Change in
Control shall occur.

 

(m)            
“Noncompetition Requirement” shall mean the agreement by the Participant with the Company, contained within
each Unit Agreement, that during the Term and for a period of three hundred sixty-five days (365) following the Participant’s
separation from service with the Bank for any reason whatsoever (except where the employment of the Participant is terminated
pursuant to Section 8.(c) of the Plan), Participant will not enter the employ of, or have any interest in, directly or indirectly
(either as executive, partner, director, officer, consultant, principal, agent or employee), any other bank or financial institution
or any entity which either accepts deposits or makes loans (whether presently existing or subsequently established) and which
has an office located within a radius of 50 miles of any office of the Bank; provided, however, that the foregoing shall not preclude
any ownership by the Participant of an amount not to exceed 5% of the equity securities of any entity which is subject to the
periodic reporting requirements of the 1934 Act and the shares of Bank common stock owned by the Participant at the time of termination
of employment.

 

(n)              
“Option 1” shall mean the Participant has made an irrevocable election, as of the Grant Date, to receive
payment of a Unit Appreciation Payment under this Plan after the Unit has vested in accordance with Section 7(a) of this Plan.

 

(o)              
“Option 2” shall mean the Participant has made an irrevocable election, as of the Grant Date, to receive
payment of a Unit Appreciation Payment under this Plan after the Unit has vested in accordance with Section 7(b) of this Plan.

 

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(p)              
“Participant” shall mean select group of management or highly compensated employees who are in the regular
employment of the Company and who are expected to be primarily responsible for the management, growth, or supervision of some
part or all of the business of the Company. The power to determine who is and who is not a Participant shall be reserved solely
for the Committee but participation shall exclude employees who would not qualify as one of the foregoing group of employees.

 

(q)              
“Participant Election” shall mean the irrevocable election the Participant makes in the Unit Agreement
to receive payment of a Unit Appreciation Payment under this Plan under Option 1 or Option 2.

 

(r)               
“Plan” shall mean this Professional Bank 2014 Share Appreciation Rights Plan.

 

(s)               
“Prior Plan” shall mean the Professional Bank 2012 Share Appreciation Rights Plan.

 

(t)                
“Regulation” shall mean a Treasury Regulation unless otherwise clear from the context used.

 

(u)              
“Separation from service” shall have the same meaning as in Regulation 1.409A-1(h).

 

(v)              
“Shareholders” shall mean the holders of the Common Stock.

 

(w)            
“Term” shall include the period beginning upon the effective date of this Plan, October 21, 2014, and
continuing until such time as Participant has separated from service with the Company in Section 8.

 

(x)              
“Unit” shall mean a vested or nonvested future right to share in the increase the Fair Market Value of
a share of Common Stock as may be granted under this Plan which may entitle a Participant to receive a Unit Appreciation Payment
as more specifically provided in Section 8.

 

(y)              
“Unit Agreement” shall mean an agreement between Company and a Participant setting out the terms and conditions
of a grant of Units, substantially in the form attached hereto as Exhibit A.

 

(z)              
“Unit Appreciation Payment” shall mean the payment equal to the difference between the Base Price of a
Unit and the Fair Market Value of the Unit (but not below zero) as of the date set forth in Section 8 hereof.

 

3.       Effective
Date and Termination Date. The Plan was approved by the Board on October 21, 2014. The Plan shall be effective as of
October 21, 2014 upon its adoption by the Board. It shall continue in effect for a term of ten (10) years thereafter unless
sooner terminated under Section 13 hereof (“Termination Date”). With respect to any Units outstanding after
the Termination Date, vested or unvested, the terms of this Plan shall continue to apply to: (i) unvested Units under Option
1 until such time as the Units are vested and a Unit Appreciation Payment has been made pursuant to Section 8.(a); and (ii)
all Units under Option 2, until such Units are vested under Section 7.(b), the occurrence of an event described in Section
8.(b) and a Unit Appreciation Payment is made.

 

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4.       Grants
of Units. Units may be granted to any Participant designated by the Committee, who in the discretion of the Committee,
has already made or is in a position to make a significant contribution to the success of the Company. Subject to the provisions
of this Plan, the Committee shall determine at what time(s) Units are to be granted, which Participants are to be granted Units,
the number of Units, the duration of each Unit, the Base Price for each Unit (as herein defined), and the time or times within
which all or portions of each Unit shall vest. In making such determinations, the Committee shall consider the nature of the services
rendered by the employee, the employee’s present and potential future contributions and such other factors as the Committee, in
its sole discretion, deems relevant. Notwithstanding the above, the Committee may delegate certain powers relating to the granting
of Awards as it deems appropriate to executive officers of the Company, including the power to determine certain terms and conditions
of such grants. The Participant shall make the Participant Election in the Unit Agreement to receive payment of a Unit Appreciation
Payment under this Plan pursuant to either Option 1 or Option 2. A Participant Election that is made for Unit(s) in a Unit Agreement
cannot subsequently be changed or modified by Participant or Company. However, different Participant Elections may be made for
the Unit(s) granted in each separate Unit Agreement.

 

5.       Available
Units. The maximum number of Units which shall be made available for issuance under the Plan shall be Five Hundred Thousand
(500,000) Units. If any Unit granted under the Plan is terminated, forfeited, or ceases to be exercisable for any other reason
prior to the end of the period during which Units may be granted under the Plan, such unpaid Units shall become available for
new grants under the Plan to any eligible employee, including the original holder of such Units.

 

6.       Consideration
of Grant.

 

(a)              
Services are Consideration of Grants. Grants of Units under the Plan are made in consideration of the services to
be rendered by the Participant to the Company and is subject to the terms and conditions of the Plan and the Unit Agreement.

 

(b)              
Noncompetition Requirement. As a condition precedent to the grant of any Unit, the Participant shall agree by execution
of the Unit Agreement that any entitlements to a Unit Appreciation Payment accrued or received under this Plan shall be subject
to Participant’s compliance with the Noncompetition Requirement. The Committee may also require the Participant to agree to the
amendment of the Participant’s employment agreement, if any, to participate in the Plan and forego participation in the Prior
Plan. The Committee may take into consideration a Participant’s willing waiver of future participation under the Prior Plan.

 

7.       Vesting
of Units.

 

(a)              
Vesting of Units under Option 1. A nonvested Unit granted to a Participant who has elected to receive a Unit Appreciation
Payment under Option 1 of this Plan shall vest at the earlier of the following events: (i) completion of 1,825 full calendar
days of continuous service with the Bank from Grant Date; (ii) an involuntary separation from service without cause (as defined
in Section 8.(a)(ii)) that occurs within the one hundred and eighty (180) day period preceding a Liquidity Event; (iii) upon Disability
or death of the Participant described in Section 8.(d) and (e), respectively; or (iv) upon the occurrence of a Liquidity Event.

 

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(b)              
Vesting of Units under Option 2. A nonvested Unit granted to a Participant who has elected to receive a Unit Appreciation
Payment under Option 2 of this Plan shall vest at the earlier of the following events: (i) completion of 1,825 full calendar
days of continuous service with the Bank from the Grant Date; (ii) an involuntary separation from service without cause that occurs
within the one hundred and eighty (180) day period preceding a Liquidity Event; (iii) upon Disability or death of the Participant;
or (iv) upon the occurrence of a Liquidity Event.

 

(c)              
Partial Vesting upon a Partial Liquidity Event. If the Liquidity Event results in only a partial cash distribution
to the Company or to the Shareholders so that less than 100% of the Common Stock or Company assets are sold, the nonvested Units
shall partially vest based on a fraction, the numerator of which shall be the cash exchanged in the Liquidity event and the denominator
shall be 100% of the Fair Market Value of the then outstanding Common Stock: the remainder of the nonvested Units shall continue
to be subject to vesting as provided above in Sections 7.(a) or 7.(b) or shall be forfeited as the case may be.

 

(d)              
Forfeiture of Nonvested Units Upon Separation From Service. Except as may otherwise be provided in this Section
7., all nonvested Units granted to a Participant shall be forfeited and become null and void upon separation from service for
any reason.

 

(e)              
Forfeiture of Vested Units and/or Repayment of Unit Appreciation Payments.

 

(i)                
Forfeiture. Notwithstanding the foregoing, a Participant’s vested Units shall become forfeited and null and void
if the Participant’s involuntary separation from service for cause (as defined in Section 8(c)).

 

(ii)             
Repayment of Unit Appreciation Payments. If after separation from service for any reason (except an involuntary
separation from service without cause), the Participant shall fail to comply with the Noncompetition Requirement in the Unit Agreement,
(i) all vested Units shall be forfeited and (ii) any payments attributable to Units received by the Participant within the Noncompetition
Requirement shall be repaid to the Company within ninety (90) days of such failure to comply or as the Participant and Committee
may otherwise agree in writing.

 

8.       Unit
Appreciation Payment

 

(a)       Payment
Pursuant to Option 1.

 

(i)                
Payment of Vested Units. A Unit Appreciation Payment for vested Units under Option 1 shall be made in a lump sum on the
90th day following the date such Units become vested under Section 7.(a), and pursuant to such additional applicable payment terms
under this Section 8. The amount of the Unit Appreciation Payment shall be the difference between the Base Price of the vested
Unit and the Fair Market Value as of the date of vesting.

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(ii)                
Payment of Certain Nonvested Units. If the Bank had initiated the Participant’s involuntary separation from service for
any reason other than for Cause, Death or Disability (“involuntary separation from service without cause”) and the Participant
had not completed 1,825 full calendar days of continuous service with the Bank from the Grant Date as of the date of the involuntary
separation from service without cause, the Participant shall nevertheless receive a Unit Appreciation Payment if and only if a
Liquidity Event occurs within 180 days after the date of the Participant’s involuntary separation from service without cause.
The amount of the Unit Appreciation Payment shall be the difference between the Base Price of each vested Unit and the Fair Market
Value of such Unit determined as of the date of the Liquidity Event (but not below zero). If no Liquidity Event shall occur within
the 180 day period after the involuntary separation from service without cause, the nonvested Unit shall be forfeited and null
and void as of the date of separation from service.

 

(b)       Payment Pursuant to Option 2.

 

(i)                
Payment of Vested Units. 

 

(1)              
While Employed by the Company. A Unit Appreciation Payment for vested Units under Option 2 shall be made only upon
the occurrence of a Liquidity Event and pursuant to the same terms and conditions of the Liquidity Event as applicable to holders
of the Common Stock. The amount of the Unit Appreciation Payment shall be the difference between the Base Price of each vested
Unit and the Fair Market Value of such Unit as determined in the Liquidity Event.

 

(2)              
Termination after Involuntary Separation from Service Without Cause. A Unit Appreciation Payment for vested Units
under Option 2, after a Participant’s involuntary separation from service without cause, shall be made only upon the occurrence
of a Liquidity Event and pursuant to the same terms and conditions of the Liquidity Event as applicable to holders of the Common
Stock. The amount of the Unit Appreciation Payment shall be the difference between the Base Price of each vested Unit and the
Fair Market Value of such Unit as determined on the date of the Participant’s involuntary separation from service without cause.

 

(ii)                
Payment
of Certain Nonvested Units. If the Bank had initiated the Participant’s involuntary separation from service without cause
and the Participant had not completed 1,825 full calendar days of continuous service with the Bank from the Grant Date as of the
date of the involuntary separation from service without cause, the Participant shall nevertheless receive a Unit Appreciation
Payment if and only if a Liquidity Event occurs within 180 days after the date of the Participant’s involuntary separation from
service without cause. The amount of the Unit Appreciation Payment shall be the difference between the Base Price of each vested
Unit and the Fair Market Value of such Unit determined as of the date of the Liquidity Event (but not below zero). If no Liquidity
Event shall occur within the 180 day period after the involuntary separation from service without cause, the nonvested Unit shall
be forfeited and null and void as of the date of separation from service.

 

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(c)       Separation
from Service for Cause. If the Bank shall initiate the Participant’s separation from service for cause (“involuntary
separation from service for cause”), all of the Units then granted to the Participant (whether vested or unvested) shall
immediately be forfeited and become null and void, and no Unit Appreciation Payment shall be made as to such forfeited Units under
any circumstances. If the involuntary separation from service for cause is not defined in any separate employment agreement between
the Participant and the Company, then for purposes of this Plan, “involuntary separation from service for cause” shall
mean the Participant’s:

 

(i)                
dishonesty, fraud, malfeasance, gross negligence or misconduct which, in the reasonable judgment of the Company, has resulted,
or is likely to result, in material injury to Company, its affiliates or the business reputation of Company or its affiliates;

 

(ii)             
willful failure to comply with the direction (consistent with Participant’s duties) of the Company or the Bank or to follow
the policies, procedures, and rules of Company or Bank;

 

(iii)           
negligent failure to comply with the direction (consistent with Participant’s duties) of the Company or the Bank or to follow
the policies, procedures, and rules of Company or Bank which is not substantially cured as is objectively reasonable within thirty
(30) days of receipt of written notice from Company or Bank specifying the failure;

 

(iv)            
conviction of, or Participant’s entry of a plea of guilty or no contest to, a felony or crime involving moral turpitude;
or

 

(v)              
failure to meet goals and performance objectives as specified by the Company and/or the Chairman on an annual basis.

 

(d)       Separation from Service due to
Disability. A Participant’s separation from service due to the Participant’s Disability occurs when the Participant has
been diagnosed with a medically determinable physical or mental impairment that conforms to one of the definitions in
Regulation 1.409A-3(i)(4)(i). All nonvested Units shall thereupon vest as of the date of Disability. All vested Units under
Option 1 and Option 2 shall receive Unit Appreciation Payments in an amount that shall be the difference between the Base
Price of each vested Unit and the Fair Market Value of such Unit determined as of the date of separation from service due to
Disability (but not below zero). Unless the Participant or the Participant’s guardian shall tender cash to the Company in
full payment of applicable all Participant and Company payroll and withholding taxes attributable to all Unit Appreciation
Payments, the amount of such Unit Appreciation Payment shall be reduced (but not below zero) by the amount of Participant and
Company payroll and withholding taxes. Payment of the Unit Appreciation Payment shall be made on the 90th day
following the date of separation from service due to Disability. No further payments shall thereafter be made to such
Units.

 

(e)       Separation
from Service due to Death. A Participant’s separation from service due to the Participant’s Death shall cause all
nonvested Units to vest as of the date of Death. All vested Units under Option 1 and Option 2 shall receive Unit Appreciation
Payments in an amount that shall be the difference between the Base Price of each vested Unit and the Fair Market Value of
such Unit determined as of the date of separation from service due to Death (but not below zero). Unless the Participant’s
estate or trust shall tender cash to the Company in full payment of applicable all Participant and Company payroll and
withholding taxes attributable to all Unit Appreciation Payments, the amount of such Unit Appreciation Payment shall be
reduced (but not below zero) by the amount of Participant and Company payroll and withholding taxes. Payment of the Unit
Appreciation Payment shall be made on the 90th day following the date of separation from service due to Death. No
further payments shall thereafter be made to such Units.

 

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(f)               
Voluntary Separation from Service. If a Participant voluntarily separates from service before the Units are vested
under Option 1 or Option 2, the Participant’s nonvested Units shall immediately be forfeited and become null and void, and no Unit
Appreciation Payment shall be made as to those nonvested Units under any circumstances.

 

(g)              
Form of payment. The Committee shall have the discretion to pay the amount of the Unit Appreciation Payment either
in (i) cash, (ii) Common Stock with cash for fractional shares and for the payment of withholding and payroll taxes, or (iii) in
kind consideration as provided in the Liquidity Event with cash for fractional shares and for the payment of withholding and payroll
taxes.

 

(h)              
No interest. No interest shall be paid on any unpaid vested Unit Appreciation Payment under any circumstances.

 

(i)                
Withholding and Payroll Taxes. Unless the Participant shall tender cash to the Company in full payment of all applicable
Participant and Company payroll and withholding taxes attributable to a Unit Appreciation Payment, the amount of such Unit Appreciation
Payment shall be reduced (but not below zero) by the total amount of Participant’s and Company’s payroll and withholding tax obligations.

 

9.                 
At Will Employment. Nothing in the Plan or in any Unit Agreement hereunder shall confer upon any Participant
any right to continue in the employ of the Bank, or shall interfere with or restrict in any way the rights of the Bank, which are
hereby expressly reserved, to discharge any Participant at any time for any reason whatsoever, as an involuntary separation from
service without cause or for cause as those terms are defined in Section 8 hereof except to the extent expressly provided otherwise
in a written employment agreement between the Participant and the Company.

 

10.             
Administration. The Plan shall be administered by the Committee. The Committee shall have full and exclusive
discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all
disputed claims filed under the Plan. Every finding, decision and determination made by the Committee shall, to the full extent
permitted by law, be final and binding upon all parties. Members of the Board who are Participants are permitted to participate
in the Plan, provided that members of the Board who are eligible to participate in the Plan may not vote on any matter affecting
the administration of the Plan or the grant of any Unit pursuant to the Plan.

 

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11.             
Transferability. Any
rights granted to a Participant under the terms of this Plan may not be assigned, transferred, pledged or otherwise disposed
of in any way by the Participant. Any such attempt at assignment, transfer, pledge or other disposition shall be
without effect and null and void.

 

12.             
Adjustments
Upon Changes in Capitalization. Unless the Committee specifically determines otherwise, the price per share of Common Stock
covered by each Unit under the Plan which has not yet been exercised shall be proportionately adjusted for any increase or decrease
in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the number of shares of Common Stock effected without
receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall
not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Committee,
whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by
the Company of shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares of Common Stock subject to the Plan. Any adjustment accomplished as a result of a change in capitalization
shall be subject to any required action by the shareowners of the Company.

 

13.             
Amendment or Termination.

 

(a)              
The Committee may, without further action by the Board and without receiving further consideration from the Participants,
amend this Plan or condition or modify awards under this Plan in response to changes in securities or other laws or rules, regulations
or regulatory interpretations thereof applicable to this Plan or to comply with applicable self-regulatory organization rules or
requirements.

 

(b)              
The Committee may at any time and from time to time terminate or modify or amend the Plan in any respect, except that, without
Board approval, the Committee may not materially amend the Plan, including, but not limited to, increasing the number of shares
of Common Stock to be issued under the Plan (other than adjustments pursuant to Section 12).

 

14.             
Notices. All notices or other communications by a Participant to the Company under or in connection with the Plan shall
be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated
by the Company for the receipt thereof.

 

15.             
Conditions Upon Issuance of
Shares. Common Stock that may be issued with respect to a Unit Appreciation Payment shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Exchange
Act, the rules and regulations promulgated thereunder and the requirements of any stock exchange upon which the shares may
then be listed.

 

16.             
Compliance with Laws.

 

(a)       Securities
Laws. The Plan, the granting and vesting of Units under the Plan and the payment of Unit Appreciation Payment are
subject to compliance with all applicable federal and state laws, rules and regulations and to such approvals by any
regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in
connection therewith. To the extent permitted by applicable law, the Plan and Units granted or awarded hereunder shall be
deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

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(b)              
Non-ERISA Plan. Unless otherwise determined by the Committee, in each Unit Agreement, the Participant shall acknowledge
and agree with the Company as follows: (a) the Plan serves as part of the compensation package for key employees and provides a
mechanism to monetize executive performance consistent with adding Shareholder value; (b) the award of Units is not a security
and does not provide rights as a holder of Common Stock; (c) the Plan is intended not to be an ERISA plan and is limited to key
employee participants and not available to all employees; (e) no Units granted under the Plan may be sold, pledged, assigned or
transferred in any way; and (f) the Company shall be entitled to require that appropriate payroll and withholding taxes be withheld
at the time of the payment of the Unit Appreciation Payment to the Participant.

 

(c)              
Code §409A Compliant Construction. The Plan is intended to comply with Section 409A of the Code and shall be
construed and interpreted in accordance with such intent. Any provision of the Plan that would cause a grant or any other payment
under the Plan to fail to satisfy Section 409A of the Code shall have no force and effect until amended to comply with Code Section
409A (which amendment may be retroactive to the extent permitted by the Guidance). If the Committee at any time determines that
the Plan or Units granted under the Plan are or may be subject to, and fail or may fail to comply with, the requirements of Section
409A of the Code, the Committee may make such modifications to the Plan and to the terms of any Unit Agreements as it deems advisable
to comply. Notwithstanding the foregoing, nothing herein shall create any obligation by the Company to any participant should the
grant of a Unit or if a Unit Appreciation Payment shall fail to satisfy Section 409A of the Code.

 

17.             
Interpretation. Any dispute regarding the interpretation of this Plan shall be submitted by the Participant or
the Company to the Committee for review, and shall be reviewed in favor of this Plan. The resolution of such dispute by the Committee
shall be final and binding on the Participant and the Company.

 

18.             
Confidentiality of the Plan. The terms of this Plan are proprietary in nature and the Participant shall not make
any public statement, announcement, press release, or otherwise disclose the terms of the Plan, or make public any documents Participant
receives describing the Plan (including but not limited to, the Unit Agreement, the Plan, summary plan document, etc.), to any
third parties not affiliated with the Company, without the prior written consent of the Company. Notwithstanding the foregoing,
nothing herein shall prohibit Participant from sharing the terms of the Plan with Participant’s own legal counsel and/or accountants.

 

19.              Additional
Restrictions of Section 16 of the Exchange Act. The terms and conditions of rights granted hereunder to persons
subject to Section 16 of the Exchange Act shall comply with the applicable provisions of the rules and
regulations promulgated under such Section 16. This Plan, the Units, the Unit Appreciation Payment any and the shares that
may be issued hereunder shall be subject to, such additional conditions and restrictions as may be required by such rules and
regulations to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions.

 

    11

     

    

 

20.              WAIVER
OF JURY TRIAL. THE COMPANY AND EACH PERSON WHO IS A PARTICIPANT, BENEFICIARY, ESTATE, HEIR OR ASSIGN OF A UNIT
EXPRESSLY WAIVES ALL RIGHTS TO ANY TRIAL BY JURY IN ALL LITIGATION RELATING TO OR ARISING OUT OF THE SUBJECT MATTER OF THIS
PLAN.

 

*                      *                       *

As adopted by the Board of Directors of

Professional Holding Corp.

Effective as of October 21, 2014

 

    12

     

    

 

EXHIBIT A

 

PROFESSIONAL HOLDING CORP.

2014 STOCK APPRECIATION
RIGHTS PLAN

UNIT AGREEMENTExhibit 10.13

 

RESTRICTED STOCK AWARD AGREEMENT

 

This Restricted Stock
Award Agreement (this “Agreement”) sets forth the terms of a Restricted Stock award granted on __________________
(the “Effective Date”) by Professional Holding Corp., a Florida corporation (the “Company”),
to _________________________ (the “Participant”). Capitalized terms used but not defined in this Agreement have
the meanings ascribed to them in the Professional Holding Corp. 2019 Equity Incentive Plan (the “Plan”).

 

RECITALS

 

A.       The
Company adopted Plan pursuant to which the Company may grant Restricted Stock awards to certain Employees, Consultants and Directors
or those persons expected to become Employees, Consultants or Directors.

 

B.       The
Committee has determined that it is in the best interests of the Company and its shareholders to grant Restricted Stock to the
Participant in accordance with the terms and conditions of this Agreement.

 

C.       Participant
wishes to accept such grant of Restricted Stock on the terms and subject to the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE,
in consideration of the mutual promises set forth in this Agreement, and for other good and valuable consideration, the adequacy
of which is acknowledged by the parties’ execution of this Agreement, the Company and the Participant agree as follows:

 

1.      
Grant of Restricted Stock. Pursuant to Section 7 of the Plan, the Company has granted to the Participant on
the Effective Date a Restricted Stock award consisting of, in the aggregate, _____________ shares of Class A Voting Common Stock
of the Company, subject to the terms and conditions and subject to the restrictions set forth in this Agreement and the Plan. This
grant of Restricted Stock is made in consideration of the services rendered and to be rendered by the Participant to the Company.

 

2.      
Restricted Period; Vesting.

 

a.      
Vesting Schedule. Except as otherwise provided in this Agreement, provided that the Participant remains in Continuous
Service (as defined below) through the applicable vesting date, and further provided that any additional conditions and Performance
Goals set forth in Schedule A have been satisfied, if any, the Restricted Stock will vest in accordance with the
following schedule:

 

	Vesting Date	Shares of Class A Voting Common Stock
	 	 
	[DATE]	[NUMBER OR % OF SHARES]
	 	 
	[DATE]	[NUMBER OR % OF SHARES]
	 	 
	[DATE]	[NUMBER OR % OF SHARES]
	 	 
	[DATE] (the “Final Vesting Date”)	[NUMBER OR % OF SHARES]

 

    1

     

    

 

The period from the Effective
Date through the Final Vesting Date is referred to as the “Restricted Period.” For purposes of this Agreement,
“Continuous Service” means that the Participant’s service with the Company, whether as an Employee, Consultant
or Director, is not interrupted or terminated. The Participant’s Continuous Service shall not be deemed to have terminated
merely because of a change in the capacity in which the Participant renders service to the Company as an employee, consultant or
director or a change in the entity for which the Participant renders such service, provided that there is no interruption
or termination of the Participant’s Continuous Service; and provided further that if any Award is subject to Section
409A of the Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code. The Committee,
in its sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence
by the Participant, including sick leave, military leave or any other personal or family leave of absence.

 

b.      
Termination of Continuous Service. Except as set forth in this Agreement and subject to the Plan, the foregoing vesting
schedule notwithstanding, if the Participant’s Continuous Service terminates for any reason at any time before all of his
or her Restricted Stock has vested, the Participant’s unvested Restricted Stock shall be automatically forfeited upon such
termination of Continuous Service and the Company shall have no further obligations to the Participant under this Agreement. Neither
the Plan nor this Agreement shall confer upon the Participant any right to be retained in any position, as an Employee, Consultant
or Director of the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company
to terminate the Participant’s Continuous Service at any time, with or without Cause.

 

c.      
Change in Control. The foregoing vesting schedule notwithstanding, upon the occurrence of a Change in Control, 100%
of the unvested Restricted Stock shall vest as of the date of the Change in Control.

 

d.      
Death or Disability. The foregoing vesting schedule notwithstanding, if the Participant’s Continuous Service
terminates as a result of death or Disability of the Participant, then any unvested Restricted Stock that would have vested within
one (1) year from the date of termination (or within such other period as determined by the Committee) shall vest as of the date
of termination and all other unvested shares shall be automatically forfeited as of the date of termination.

 

e.      
Termination without Cause. The foregoing vesting schedule notwithstanding, if the Participant’s Continuous
Service terminates as a result of voluntary resignation by the Participant or termination by the Company without Cause, then any
unvested Restricted Stock that would have vested within thirty (30) days from the date of termination (or within such other period
as determined by the Committee) shall vest as of the date of termination and all other unvested shares shall be automatically forfeited
as of the date of termination.

 

		3.	Restrictions.

 

a.      
Transfer Restriction. Subject to any exceptions set forth in this Agreement or the Plan, during the Restricted Period,
the Restricted Stock or the rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise transferred
or encumbered by the Participant. Any attempt to assign, alienate, pledge, attach, sell or otherwise transfer or encumber the Restricted
Stock or the rights relating thereto during the Restricted Period shall be wholly ineffective and, if any such attempt is made,
the Restricted Stock will be forfeited by the Participant and all of the Participant’s rights to such shares shall immediately
terminate without any payment or consideration by the Company.

 

b.      
Effect of Prohibited Transfer. The Company shall not be required to (i) transfer on its books any shares of Restricted
Stock that have been transferred in violation of any of the provisions set forth in this Agreement, or (i) treat as owner of such
Restricted Stock or to pay dividends or other distributions to any transferee to whom any such Restricted Stock shall have been
so sold or transferred.

 

    2

     

    

 

		4.	Rights as a Shareholder; Dividends.

 

a.      
Shareholder Rights. The Participant shall be the record owner of the Restricted Stock (including unvested Restricted
Stock) granted under this Agreement until the shares are sold or otherwise disposed of, and shall be entitled to all of the rights
of a shareholder of the Company including, without limitation, the right to vote such shares and receive all dividends or other
distributions paid with respect to such shares. Notwithstanding the foregoing, (i) any dividends or other distributions shall be
subject to the same restrictions on transferability as the shares of Restricted Stock with respect to which they were paid; and
(ii) any dividends or other distributions paid by the Company with respect to any shares of Restricted Stock shall accrue but shall
not be payable unless and until vesting of such Restricted Stock occurs, at which time the accumulated dividends shall be paid
by the Company.

 

b.      
Stock Certificates. The Company may, but need not, issue stock certificates or evidence the Participant’s interest
by using a restricted book entry account with the Company’s transfer agent.

 

c.      
Forfeiture. If the Participant forfeits any rights he or she has under this Agreement pursuant to Section 3, the
Participant shall, on the date of such forfeiture, no longer have any rights as a shareholder with respect to any unvested Restricted
Stock and shall no longer be entitled to vote or receive dividends on such shares.

 

5.      
Tax Liability and Withholding.

 

a.      
Payment of Taxes. The Participant shall be required to pay to the Company, and the Company shall have the right to
deduct from any compensation paid to the Participant pursuant to this Agreement, the amount of any required withholding taxes in
respect of the Restricted Stock granted under this Agreement and to take all such other action as the Committee deems necessary
to satisfy all obligations for the payment of such withholding taxes. The Committee may permit the Participant to satisfy any federal,
state or local tax withholding obligation by any of the following means, or by a combination of such means: (i) tendering a cash
payment; (ii) authorizing the Company to withhold shares from those otherwise issuable or deliverable to the Participant as a result
of the vesting of the Restricted Stock; provided, however, that no shares of Class A Voting Common Stock shall be withheld with
a value exceeding the minimum amount of tax required to be withheld by law; or (iii) delivering to the Company previously owned
and unencumbered shares of Class A Voting Common Stock.

 

b.      
Liability. Notwithstanding any action the Company takes with respect to any or all income tax, social insurance,
payroll tax, or other tax-related withholding (the “Tax-Related Items”), the ultimate liability for all Tax-Related
Items is and remains the Participant’s responsibility and the Company (a) makes no representation or undertakings regarding
the treatment of any Tax-Related Items in connection with the grant or vesting of the Restricted Stock or the subsequent sale of
any shares; and (b) does not commit to structure the Restricted Stock to reduce or eliminate the Participant’s liability
for Tax-Related Items.

 

6.      
Section 83 Election. The Participant may make an election under Code Section 83(b) (a “Section 83(b)
Election”) with respect to the Restricted Stock granted under this Agreement. Any such election must be made within thirty
(30) days after the Effective Date. If the Participant elects to make a Section 83(b) Election, the Participant shall provide the
Company with a copy of an executed version and satisfactory evidence of the filing of the executed Section 83(b) Election with
the U.S. Internal Revenue Service. The Participant agrees to assume full responsibility for ensuring that the Section 83(b) Election
is actually and timely filed with the U.S. Internal Revenue Service and for all tax consequences resulting from the Section 83(b)
Election.

 

    3

     

    

 

		7.	Compliance with Law.

 

a.      
Compliance. The issuance and transfer of shares of Restricted Stock granted under this Agreement shall be subject
to compliance by the Company and the Participant with all applicable requirements of federal and state securities laws and with
all applicable requirements of any stock exchange on which the Company’s shares of Class A Voting Common Stock may be listed.
No shares of Restricted Stock granted under this Agreement shall be issued or transferred unless and until any then applicable
requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company
and its counsel. The Participant understands that the Company is under no obligation to register the shares of Class A Voting Common
Stock with the Securities and Exchange Commission, any state securities commission or any stock exchange to effect such compliance.

 

b.      
Legend. A legend may be placed on any certificate(s) or other document(s) delivered to the Participant indicating
restrictions on transferability of the shares of Restricted Stock pursuant to this Agreement or any other restrictions that the
Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any
applicable federal or state securities laws or any stock exchange on which the shares of Class A Voting Common Stock are then listed
or quoted.

 

		8.	Miscellaneous.

 

a.      
Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant
or the Company to the Committee for review. The resolution of such dispute by the Committee shall be final and binding on the Participant
and the Company. In the event of any inconsistency between the terms and conditions of this Agreement and any existing employment
agreement, service contract or other agreement between the Participant and the Company (each, a “Service Agreement”),
the terms and conditions of the Service Agreement shall control.

 

b.      
Restricted Stock Subject to the Plan. This Agreement is subject to the Plan as approved by the Company’s shareholders,
as the Plan may be amended from time to time, and the terms and provisions of the Plan, as it may be amended from time to time,
are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term
or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

 

c.      
Discretionary Nature of the Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company
at any time, in its discretion. The grant of the Restricted Stock in this Agreement does not create any contractual right or other
right to receive any Restricted Stock or other Awards in the future. Future Awards, if any, will be at the sole discretion of the
Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions
of the Participant’s employment or engagement with the Company.

 

d.      
No Impact on Other Benefits. The value of the Participant’s Restricted Stock granted under this Agreement is
not part of his normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar
employee benefit.

 

e.      
Acceptance. The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement. The Participant
has read and understands the terms and provisions this Agreement and the Plan, and accepts the Restricted Stock granted under this
Agreement subject to all of the terms and conditions of the Plan and this Agreement. The Participant acknowledges that there may
be tax consequences upon the grant or vesting of the Restricted Stock granted under this Agreement and/or the disposition of the
underlying shares and that the Participant has been advised to consult a tax advisor prior to such grant, vesting or disposition.

 

    4

     

    

 

f.       
Gunster, Yoakley & Stewart, P.A. Represents the Company. The Participant acknowledges and agrees that Gunster,
Yoakley & Stewart, P.A., a Florida professional association (“Gunster”) represents the Company and not the
Participant. Participant acknowledges that Gunster has not represented him or her in connection with this Agreement and that he
or she has been advised to engage legal counsel to advise him or her regarding this Agreement.

 

g.      
Further Instruments. The Company and the Participant agree to execute such further instruments and to take such further
action as may reasonably be necessary to carry out the intent of this Agreement.

 

h.      
Notices. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed
to the Chief Financial Officer of the Company at the Company’s principal corporate offices. Any notice required to be delivered
to the Participant under this Agreement shall be in writing and addressed to the Participant at the Participant’s address
as shown in the records of the Company. Either party may designate another address by delivering notice of such designation in
accordance with this Section.

 

i.       
Governing Law, Venue and Jurisdiction. This Agreement shall be governed in all respects by the laws of the State
of Florida without regard to conflicts-of-law principles. Any civil action or legal proceeding arising out of or relating to this
Agreement shall be brought in the courts of record of the State of Florida in Miami-Dade County, Florida. Each party consents to
the jurisdiction of such Florida court in any such civil action or legal proceeding and waives any objection to the laying of venue
of any such civil action or legal proceeding in such Florida court. Service of any court paper may be affected on such party by
mail, as provided in this Agreement, or in such other manner as may be provided under applicable laws, rules of procedure or local
rules.

 

j.       
Assignment. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and
inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in this Agreement,
this Agreement will be binding upon the Participant and the Participant’s beneficiaries, executors, administrators and the
person(s) to whom the Restricted Stock may be transferred by will or the laws of descent or distribution.

 

k.      
Amendment. The Committee has the right to amend, alter, suspend, discontinue or cancel the Restricted Stock granted
under this Agreement, prospectively or retroactively; provided, that, no such amendment, nor any amendment to the Plan, shall adversely
affect the Participant’s material rights under this Agreement without the Participant’s consent.

 

l.       
Severability. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect
the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement
shall be severable and enforceable to the extent permitted by law.

 

m.    
Waiver. No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver
of that or any other right. A waiver or consent given by the Company on any one occasion shall be effective only in that instance
and shall not be construed as a bar or waiver of any right on any other occasion.

 

    5

     

    

 

n.      
JURY WAIVER. IN ANY CIVIL ACTION, COUNTERCLAIM, OR PROCEEDING, WHETHER AT LAW OR IN EQUITY, WHICH ARISES OUT OF,
CONCERNS, OR RELATES TO THIS AGREEMENT, ANY AND ALL TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE PERFORMANCE OF THIS AGREEMENT,
OR THE RELATIONSHIP CREATED BY THIS AGREEMENT, WHETHER SOUNDING IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE, TRIAL SHALL
BE TO A COURT OF COMPETENT JURISDICTION AND NOT TO A JURY. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY. ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT, AS WRITTEN EVIDENCE OF THE CONSENT
OF THE COMPANY AND PARTICIPANT OF THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. NEITHER PARTY HAS MADE OR RELIED UPON ANY ORAL REPRESENTATIONS
TO OR BY ANY OTHER PARTY REGARDING THE ENFORCEABILITY OF THIS PROVISION. EACH PARTY HAS READ AND UNDERSTANDS THE EFFECT OF THIS
JURY WAIVER PROVISION. EACH PARTY ACKNOWLEDGES THAT IT HAS BEEN ADVISED BY ITS OWN COUNSEL WITH RESPECT TO THE TRANSACTION GOVERNED
BY THIS AGREEMENT AND SPECIFICALLY WITH RESPECT TO THE TERMS OF THIS SECTION.

 

o.      
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and a complete
set of which, when taken together, shall constitute one and the same document. Confirmation of execution by electronic transmission
of a facsimile or .pdf signature page shall be binding, and each party hereby irrevocably waives any objection that it has or may
have in the future as to the validity of any such electronic transmission of a signature page.

 

p.      
Entire Agreement. This Agreement, together with the attached Schedule A and the Plan, constitutes the sole and entire
agreement of the parties with respect to the subject matter of this Agreement and supersedes all prior and contemporaneous understandings,
agreements, representations and warranties, both written and oral, with respect to such subject matter.

 

The Company and the
Participant have executed this Restricted Stock Award Agreement as of the Effective Date.

 

	COMPANY:	 	PARTICIPANT:
	 	 	 	 
	PROFESSIONAL HOLDING CORP.	 	[NAME]
	 	 	 	 
	By:		 	
	Name:	            	 	 
	Title: 		 	 

 

    6

     

    

 

Schedule A

 

Additional Conditions and Performance
Goals

 

    7

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