Company: NEWTP
Filing Date: 2025-04-24
Form Type: DEF 14A
Source: 0001587987-25-000073
Chunk: 34

Company: NewtekOne, Inc.
Filing Date: 2025-04-24
Form: DEF 14A
Chunk 34
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 received (as a business development company regulated under the Investment Company Act of 1940) an exemptive order from the SEC permitting us to award Restricted Stock Awards to our employees, officers, and non-employee directors, and on July 27, 2016, our shareholders approved the 2015 Stock Plan. The 2015 Stock Plan permitted us to issue awards of stock options and Restricted Stock Awards in an aggregate amount of up to 20% of our issued and outstanding Common Shares (the “Plan Maximum Shares”) as of the effective date of the plan. Under the 2015 Stock Plan, all of the Plan Maximum Shares were available for grants of stock options, and half of the Plan Maximum Shares (up to 10% of our issued and outstanding Common Shares as of the effective date of the 2015 Stock Plan) were available for grants of Restricted Stock Awards. In connection with our 2023 conversion to a financial holding company and the adoption of the 2023 Stock Plan, the 2015 Stock Plan was terminated by the Board in April 2023.

The 2023 Stock Plan was approved by the Board of Directors in April 2023 and the Company’s shareholders on June 14, 2023. The 2023 Stock Plan permits us to issue Restricted Stock Awards and stock options (collectively, the “Awards”) up to an aggregate amount of three million (3,000,000) shares of Common Stock. The number of Restricted Stock Awards issued and outstanding will not at the time of issuance of any Restricted Stock Awards exceed ten percent (10%) of the outstanding voting securities of the Company, and no more than 500,000 shares of Common Stock may be issued through incentive stock options (“ISOs”). The Nominating Committee believes that Restricted Stock Awards are the best method of encouraging stock ownership in the Company by eligible participants by giving them a proprietary interest in the Company’s performance, which more closely aligns compensation with the Company’s performance and provides a means to attract and retain persons of outstanding ability in key positions with the Company. Restricted Stock Awards are based on the employee’s and the Company’s performance and the mix and weighting of the factors vary, depending on the business segment and the employee’s responsibilities. The level of achievement and the overall contribution by the employee determines the level of Restricted Stock Award.

The Company’s Board of Directors and its Nominating Committee, which consists entirely of directors who are not employees of the Company, believe that in light of the Company’s plan for