EX-10.3



 Exhibit 10.3 

COASTAL FINANCIAL CORPORATION 

2018 OMNIBUS INCENTIVE PLAN 

Section 1. Purpose. The purpose of the Coastal Financial Corporation 2018 Omnibus Incentive Plan (the “Plan”) is
to motivate and reward employees and other individuals to perform at the highest level and contribute significantly to the success of Coastal Financial Corporation (together with its subsidiaries and any and all successor entities, the
“Company”), thereby furthering the best interests of the Company and its shareholders. 
 Section 2.
Definitions. As used in the Plan, the following terms shall have the meanings set forth below: 
 “Award” means any
Option, SAR, Restricted Stock, RSU, or Performance Award granted under the Plan. 
 “Award Agreement” means any agreement,
contract or other instrument or document evidencing any Award granted under the Plan, which may, but need not, be executed or acknowledged by a Participant. 

“Beneficial Owner” has the meaning ascribed to such term in Rule 13d-3 under the
Exchange Act. 
 “Beneficiary” means a Person entitled to receive payments or other benefits or exercise rights that are
available under the Plan in the event of the Participant’s death. If no such Person can be named or is named by the Participant, or if no Beneficiary designated by such Participant is eligible to receive payments or other benefits or exercise
rights that are available under the Plan at the Participant’s death, such Participant’s Beneficiary shall be such Participant’s estate. 

“Board” means the board of directors of the Company. 

“Change of Control” means the occurrence of any one or more of the following events, except as otherwise provided in the
Participant’s Award Agreement: 
 (a) Merger. The Company merges into or consolidates with another entity, or merges another
entity into the Company and, as a result, less than a majority of the combined voting power of the resulting entity or, if applicable, the ultimate parent thereof, immediately after the merger or consolidation is held by persons who were
stockholders of the Company immediately before the merger or consolidation; 
 (b) Acquisition of Significant Share Ownership. The
acquisition by any person (within the meaning of Section 13(d) of the Exchange Act), other any employee benefit plan or trust maintained by the Company, of fifty percent (50%) or more of the combined voting power entitled to vote generally in
the election of directors of the Company’s then outstanding voting securities; 
 (c) Change in Board Composition. During any
period of two consecutive years, individuals who constitute the Company’s Board of Directors at the beginning of the two-year period cease for any reason to constitute at least a majority of the
Company’s Board of Directors; provided, however, that for purposes of this clause (c), each director who is first elected by the Board (or first nominated by the Board for election by the stockholders) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period shall be deemed to have also been a director at the beginning of such period; or


  
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 (d) Sale of Assets. A sale, transfer, or other disposition of all or substantially
all of the assets of the Company which is consummated and immediately following which the persons who were the owners of the Company immediately prior to such sale, transfer, or disposition, do not own, directly or indirectly and in substantially
the same proportions as their ownership immediately prior to the sale, transfer, or disposition, more than fifty percent (50%) of the combined voting power entitled to vote generally in the election of directors of (i) the entity or entities to
which such assets or ownership interest are sold or transferred or (ii) an entity that, directly or indirectly, owns more than fifty percent (50%) of the combined voting power entitled to vote generally in the election of directors of the
entities described in clause (i). 
 Notwithstanding the foregoing or any provision of any Award Agreement to the contrary, for any Award
that provides for accelerated distribution on a Change of Control of amounts that constitute “deferred compensation” (as defined in Section 409A of the Code and the regulations thereunder), if the event that constitutes such Change of
Control does not also constitute a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the Company’s assets (in either case, as defined in Section 409A of the Code), such amount
shall not be distributed on such Change of Control but instead shall vest as of the date of such Change of Control and shall be paid on the scheduled payment date specified in the applicable Award Agreement, except to the extent that earlier
distribution would not result in the Participant who holds such Award incurring interest or additional tax under Section 409A of the Code. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules, regulations and guidance
thereunder. Any reference to a provision in the Code shall include any successor provision thereto. 
 “Committee” means
the Compensation Committee of the Board unless another committee is designated by the Board. If there is no Compensation Committee of the Board and the Board does not designate another committee, references herein to the “Committee” shall
refer to the Board. 
 “Director” means any member of the Company’s Board and, for eligibility purposes, a director of
any Subsidiary board of directors. 
 “Employee” means any individual employed by the Company or any Subsidiary or any
prospective employee who has accepted an offer of employment from the Company or any Subsidiary. 
 “Exchange Act” means
the Securities Exchange Act of 1934, as amended from time to time, and the rules, regulations and guidance thereunder. Any reference to a provision in the Exchange Act shall include any successor provision thereto. 

“Fair Market Value” on any date, means (i) if the Shares are listed or traded on an exchange, the closing sales price on
such exchange or over such system on such date or, in the absence of reported sales on such date, the closing sales price on the immediately preceding date on which sales were reported, or (ii) if the Shares are not listed on a securities
exchange, Fair Market Value shall mean a price determined by the Committee in good faith on the basis of objective criteria. 

“Incentive Stock Option” means an option representing the right to purchase Shares from the Company, granted pursuant to the
provisions of Section 6, that meets the requirements of Section 422 of the Code. 

  
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 “Non-Statutory Stock Option” means an
option representing the right to purchase Shares from the Company, granted pursuant to Section 6, that is not an Incentive Stock Option. 

“Option” means an Incentive Stock Option or a Non-Statutory Stock Option. 

“Participant” means the recipient of an Award granted under the Plan. 

“Performance Award” means an Award granted pursuant to Section 9. 

“Performance Period” means the period established by the Committee at the time any Performance Award is granted or at any
time thereafter during which any performance goals specified by the Committee with respect to such Award are measured. 

“Person” has the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections
13(d) and 14(d) thereof, including “group” as defined in Section 13(d) thereof. 
 “Restricted
Stock” means any Share granted pursuant to Section 8. 
 “RSU” means a contractual right granted pursuant to
Section 8 that is denominated in Shares. Each RSU represents a right to receive the value of one Share (or a percentage of such value) in cash, Shares or a combination thereof. Awards of RSUs may include the right to receive dividend
equivalents. 
 “SAR” means any right granted pursuant to Section 7 to receive upon exercise by the Participant or
settlement, in cash, Shares or a combination thereof, the excess of (i) the Fair Market Value of one Share on the date of exercise or settlement over (ii) the exercise price of the right on the date of grant, or if granted in connection
with an Option, on the date of grant of the Option. 
 “SEC” means the Securities and Exchange Commission. 

“Shares” means shares of the Company’s common stock, no par value per Share. 

“Subsidiary” means (i) any entity that, directly or indirectly, is controlled by the Company, (ii) any entity in
which the Company, directly or indirectly, has a significant equity interest, in each case as determined by the Committee and (iii) any other company which the Committee determines should be treated as a “Subsidiary.” 

Section 3. Eligibility. Any Employee, Director or any other individual who provides services to the Company or any Subsidiary
shall be eligible to be selected to receive an Award under the Plan, to the extent an offer of an Award or a receipt of such Award is permitted by applicable law, stock market or exchange rules and regulations or accounting or tax
rules and regulations. 
 Section 4. Administration. 

(a) Administration of the Plan. The Plan shall be administered by the Committee. All decisions of the Committee shall be final,
conclusive and binding upon all parties, including the Company, its shareholders, Participants and any Beneficiaries thereof. The Committee may issue rules and regulations for administration of the Plan. It shall meet at such times and places
as it may determine. 

  
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 (b) Composition of Committee. To the extent necessary or desirable to comply with
applicable regulatory regimes, any action by the Committee shall require the approval of Committee members who are (i) independent, within the meaning of and to the extent required by applicable rulings and interpretations of the applicable
stock market or exchange on which the Shares are quoted or traded; and (ii) non-employee Directors within the meaning of Rule 16b-3 under the Exchange Act. The
Board may designate one or more Directors as alternate members of the Committee who may replace any absent or disqualified member at any meeting of the Committee. To the extent permitted by applicable law, the Committee may delegate to one or more
officers of the Company the authority to grant Options and SARs or other Awards in the form of Share rights, except that such delegation shall not be applicable to any Award for a Person then covered by Section 16 of the Exchange Act. 

(c) Authority of Committee. Subject to the terms of the Plan and applicable law, the Committee (or its delegate) shall have full power
and authority to: (i) designate Participants; (ii) determine the type or types of Awards to be granted to each Participant under the Plan; (iii) determine the number of Shares to be covered by (or with respect to which payments,
rights or other matters are to be calculated in connection with) Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent and under what circumstances Awards may be settled or exercised in cash,
Shares, other Awards, other property, net settlement, or any combination thereof, or canceled, forfeited or suspended, and the method or methods by which Awards may be settled, exercised, canceled, forfeited or suspended; (vi) determine
whether, to what extent and under what circumstances cash, Shares, other Awards, other property and other amounts payable with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder thereof or of
the Committee; (vii) correct any defect, supply any omission and reconcile any inconsistency in the Plan or any Award, in the manner and to the extent it shall deem desirable to carry the Plan into effect; (viii) interpret and administer
the Plan and any instrument or agreement relating to, or Award made under, the Plan; (ix) establish, amend, suspend or waive such rules and regulations and appoint such agents, trustees, brokers, depositories and advisors and determine
such terms of their engagement as it shall deem appropriate for the proper administration of the Plan and due compliance with applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations; and
(x) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan and due compliance with applicable law, stock market or exchange rules and regulations or
accounting or tax rules and regulations; provided, however, that nothing in subsections (ix) or (x) of this paragraph is intended to provide the Committee with the authority to accelerate the vesting of any Awards except for
instances of death, disability or a Change of Control. Notwithstanding anything to the contrary contained herein, the Board may, in its sole discretion, at any time and from time to time, grant Awards or administer the Plan. In any such case, the
Board shall have all of the authority and responsibility granted to the Committee herein. 
 Section 5. Shares Available for
Awards. 
 (a) The number of Shares that may be issued pursuant to Awards granted under the Plan shall not exceed in the aggregate two
million five hundred thousand (2,500,000) Shares; provided that the aggregate number of Shares with respect to which Incentive Stock Options may be granted under the Plan shall be two million five hundred thousand (2,500,000) Shares. The aggregate
number of shares of Stock available for grant under this Plan and the number of shares of Stock subject to outstanding awards shall be subject to adjustment as provided in Section 5(c). Any Shares distributed pursuant to an Award may consist,
in whole or in part, of authorized and unissued Shares, treasury Shares or Shares purchased in the open market or by private purchase. 

  
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 (b) If any Award is forfeited, expires, terminates, otherwise lapses or is settled for cash, in
whole or in part, without the delivery of Shares, then the Shares covered by such forfeited, expired, terminated or lapsed Award shall again be available for grant under the Plan. For clarification, the following will not again become available
for issuance under the Plan: (i) any Shares withheld in respect of taxes, (ii) Shares added back that have been repurchased by the Company using Option exercise proceeds, (iii) stock-settled SARs where only actual Shares delivered
with respect to the Award are counted against the Plan reserve; and (iv) any Shares tendered or withheld to pay the exercise price of Options. 

(c) In the event that the Committee determines that, as a result of any dividend or other distribution (whether in the form of cash, Shares or
other securities), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, separation, rights offering, split-up, spin-off,
combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, issuance of Shares pursuant to the anti-dilution provisions of securities
of the Company, or other similar corporate transaction or event affecting the Shares, or of changes in applicable laws, regulations or accounting principles, an adjustment is appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the Committee shall, subject to compliance with Section 409A of the Code, adjust equitably (including, without limitation, by payment of cash) any or all of: 

(i) the number and type of Shares (or other securities) which thereafter may be made the subject of Awards, including the
aggregate limit specified in Section 5(a); 
 (ii) the number and type of Shares (or other securities) subject to
outstanding Awards; and 
 (iii) the grant, purchase or exercise price with respect to any Award or, if deemed appropriate,
make provision for a cash payment to the holder of an outstanding Award; 
 provided, however, that the number of Shares
subject to any Award denominated in Shares shall always be a whole number. 
 Section 6. Options. The Committee is authorized to
grant Options to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine: 

(a) The exercise price per Share under an Option shall be determined by the Committee at the time of grant; provided, however,
that, subject to Section 6(f), such exercise price shall not be less than the Fair Market Value of a Share on the date of grant of such Option. 

(b) The term of each Option shall be fixed by the Committee but shall not exceed 10 years from the date of grant of such Option;
provided that the Committee may (but shall not be required to) provide in an Award Agreement for an extension of such 10-year term in the event the exercise of the Option would be prohibited by law on
the expiration date. 
 (c) The Committee shall determine the time or times at which an Option becomes vested and exercisable in whole or in
part. 
 (d) The Committee shall determine the method or methods by which, and the form or forms, including, but not limited to, cash,
Shares, net settlement, broker assisted cashless exercise or any combination thereof, having a Fair Market Value on the exercise date equal to the exercise price of the Shares as to which the Option shall be exercised, in which payment of the
exercise price with respect thereto may be made or deemed to have been made. 

  
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 (e) No grant of Options may be accompanied by a tandem award of dividend equivalents or provide
for dividends, dividend equivalents or other distributions to be paid on such Options. 
 (f) The terms of any Incentive Stock Option granted
under the Plan shall comply in all respects with the provisions of Section 422 of the Code. Incentive Stock Options may be granted only to employees of the Company or of a parent or subsidiary corporation (as defined in
Section 424(a) of the Code). Notwithstanding any designation as an Incentive Stock Option, to the extent that the aggregate Fair Market Value of Shares subject to a Participant’s Incentive Stock Options that become exercisable for the
first time during any calendar year exceeds $100,000, such excess Options shall be treated as Non-Statutory Stock Options. For purposes of the foregoing, Incentive Stock Options shall be taken into
account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined as of the time of grant. No Incentive Stock Options may be issued more than ten years following the earlier of (i) the date of adoption
of this Plan by the Board or (ii) the date of approval of this Plan by the Company’s shareholders. In the case of a 10% shareholder, the exercise price per Share under an Incentive Stock Option shall not be less than 110% of the Fair
Market Value on the date of grant of such Incentive Stock Option and the term of such Incentive Stock Option shall not exceed five years from the date of grant of such Incentive Stock Option. 

(g) Each Participant awarded an Incentive Stock Option under the Plan shall notify the Committee in writing immediately after the date on which
the Participant makes a disqualifying disposition of any Shares acquired pursuant to the exercise of an Incentive Stock Option. A disqualifying disposition is any disposition (including, without limitation, any sale) of such Shares before the later
of (i) two years after the date of grant of an Incentive Stock Options and (ii) one year after the date of exercise of an Incentive Stock Option. 

Section 7. Stock Appreciation Rights. The Committee is authorized to grant SARs to Participants with the following
terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine: 

(a) SARs may be granted under the Plan to Participants either alone (“freestanding”) or in addition to other Awards granted under the
Plan (“tandem”) and may, but need not, relate to a specific Option granted under Section 6. 
 (b) The exercise price per
Share under a SAR shall be determined by the Committee; provided, however, that, such exercise price shall not be less than the Fair Market Value of a Share on the date of grant of such SAR. 

(c) The term of each SAR shall be fixed by the Committee but shall not exceed 10 years from the date of grant of such SAR. 

(d) The Committee shall determine the time or times at which a SAR may be exercised or settled in whole or in part. 

(e) Upon the exercise of a SAR, the Company shall pay to the Participant an amount equal to the number of Shares subject to the SAR multiplied
by the excess, if any, of the Fair Market Value of one Share on the exercise date over the exercise price of such SAR. The Company shall pay such excess in cash, in Shares valued at Fair Market Value, or any combination thereof, as determined by the
Committee. 

  
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 (f) No grant of SARs may be accompanied by a tandem award of dividend equivalents or provide for
dividends, dividend equivalents or other distributions to be paid on such SARs. 
 Section 8. Restricted Stock and RSUs. The
Committee is authorized to grant Awards of Restricted Stock and RSUs to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the
Committee shall determine: 
 (a) The Award Agreement shall specify the vesting schedule and, with respect to RSUs, the delivery schedule
(which may include deferred delivery later than the vesting date) and whether the Award of Restricted Stock or RSUs is entitled to voting rights, dividend rights or any other rights. 

(b) Shares of Restricted Stock and RSUs shall be subject to such restrictions as the Committee may impose, which restrictions may lapse
separately or in combination at such time or times, in such installments or otherwise, as the Committee may deem appropriate. 
 (c) The
Committee may specify in the applicable Award Agreement that any or all dividends, dividend equivalents or other distributions, as applicable, paid on Awards of Restricted Stock or RSUs prior to vesting or settlement, as applicable, be paid either
in cash or in additional Shares and either on a current or deferred basis and that such dividends, dividend equivalents or other distributions may be reinvested in additional Shares, which may be subject to the same restrictions as the underlying
Awards; provided, however, that dividends, dividend equivalents or other distributions, as applicable, on Awards of Restricted Stock and RSUs with restrictions that lapse as a result of the achievement of performance conditions shall
be deferred until and paid contingent upon the achievement of the applicable performance conditions. 
 (d) Any Share of Restricted Stock
granted under the Plan may be evidenced in such manner as the Committee may deem appropriate, including book-entry registration or issuance of a stock certificate or certificates. In the event any stock certificate is issued in respect of shares of
Restricted Stock granted under the Plan, such certificate shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted Stock. No Shares
shall be issued at the time an RSU award is made. 
 (e) If a Participant makes an election pursuant to Section 83(b) of the Code
with respect to an Award of Restricted Stock, the Participant shall be required to file promptly a copy of such election with the Company and the applicable Internal Revenue Service office. 

(f) The Committee may determine the form or forms (including cash or Shares or any combination thereof) in which payment of the amount owing
upon settlement of any RSU Award may be made. 
 Section 9. Performance Awards. The Committee is authorized to grant Performance
Awards to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine: 

(a) Performance Awards may be denominated as a cash amount, number of Shares or a combination thereof and may be earned upon achievement or
satisfaction of performance conditions specified by the Committee. In addition, the Committee may specify that any other Award shall constitute a Performance Award by conditioning the right of a Participant to exercise the Award or have it settled,
and the timing thereof, upon achievement or satisfaction of such performance conditions as may be 

  
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specified by the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions. Subject to the
terms of the Plan, the performance goals to be achieved during any Performance Period, the length of any Performance Period, the amount of any Performance Award granted and the amount of any payment or transfer to be made pursuant to any Performance
Award shall be determined by the Committee. Performance criteria may be measured on an absolute or relative basis, may be established on a corporate-wide basis or with respect to one or more business units, may be based on a ratio or separate
calculation of any performance criteria and may be made relative to an index or one or more of the performance goals themselves. Relative performance may be measured against a group of peer companies, a financial market index or other acceptable
objective and quantifiable indices. If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company, or the manner in which the Company conducts its business, or other events or
circumstances render the performance objectives unsuitable, the Committee may modify the performance objectives or the related minimum acceptable level of achievement, in whole or in part, as the Committee deems appropriate and equitable.
Performance measures may vary from Performance Award to Performance Award and from Participant to Participant, and may be established on a stand-alone basis, in tandem or in the alternative. 

(b) Settlement of Performance Awards shall be in cash or Shares or any combination thereof, as determined in the discretion of the Committee.
The Committee shall specify the circumstances in which, and the extent to which, Performance Awards shall be paid or forfeited in the event of a Participant’s termination of service. 

(c) Unless otherwise provided in the applicable Award Agreement, the Committee may provide for the payment of dividend equivalents on
Performance Awards either in cash or in additional Shares, subject in all cases to payment on a deferred and contingent basis based on the Participant’s earning of the Performance Shares upon achievement or satisfaction of performance
conditions specified by the Committee with respect to which such dividend equivalents are paid. 
 (d) Performance Awards shall be settled
only after the end of the relevant Performance Period. The Committee may, in its discretion, increase or reduce the amount of a settlement otherwise to be made in connection with a Performance Award. 

Section 10. Effect of a Change of Control on Awards. 

(a) Notwithstanding any other provision of the Plan to the contrary, and unless otherwise provided in the Award Agreement, in the event of a
Change of Control: 
 (i) Any options and Stock Appreciation Rights outstanding which are not then exercisable and vested,
shall become fully exercisable and vested upon the termination of the participant’s employment, other than for Just Cause, during the Applicable Period. 

(ii) The restrictions applicable to any Restricted Stock or Restricted Stock Unit Award which are not performance-based shall
lapse and such Restricted Stock or Restricted Stock Unit shall become free of all restrictions and become fully vested and transferable upon the termination of the participant’s employment, other than for Just Cause, during the Applicable
Period. 
 (iii) The conditions applicable to any Performance Award shall be deemed satisfied at the target level and shall
become free of all restrictions and become fully vested and transferable upon the termination of the participant’s employment, other than for Just Cause, during the Applicable Period. 

  
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 (b) For purposes of this Section 10, and unless otherwise provided in the Award Agreement,
(i) the term “Applicable Period” shall mean the twelve (12) month period ending on the first anniversary of a Change of Control and (ii) a termination for “Just Cause” shall mean termination on account of the
occurrence of any of the following events: (i) personal dishonesty; (ii) willful misconduct; (iii) breach of fiduciary duty involving personal profit; (iv) intentional failure to perform duties; or (v) willful violation of
any law, rule or regulation (other than traffic violations or similar offenses), or final cease-and-desist order. Notwithstanding the foregoing, it is expected that
the Participant will perform all duties and responsibilities of his or her position, and the Participant shall have the right to cure non-performance, to the extent such performance is reasonably capable of
being cured, and shall promptly comply upon receipt of written notice of non-performance that the Company alleges to be Just Cause, with the requirements of such notice, and further if the Participant shall
not comply with such notice to the satisfaction of the Company within forty-eight (48) hours after delivery thereof (except if such compliance cannot be reasonably completed within forty-eight (48) hours, if the Participant shall not
commence to comply within such period and thereafter proceed to completion with due diligence) the Company shall have the right to proceed with termination for Just Cause. 

(c) In order to maintain the participants’ rights in the event of a Change of Control, the Committee, as constituted before such Change of
Control, is hereby authorized, and has sole discretion, as to any Award, either at the time such Award is made hereunder or any time thereafter, to take any one or more of the following actions: (i) provide for the purchase of any such Award
for an amount of cash equal to the amount that could have been attained upon the exercise of such Award or realization of the participant’s rights, had such Award been currently exercisable or payable; or (ii) cause any such Award then
outstanding to be assumed, or new rights substituted therefore, by the acquiring or surviving corporation after such Change of Control; provided, however, that nothing in this paragraph is intended to provide the Committee with the authority
to accelerate the vesting of any Awards except for instances of death, disability or a Change of Control. The Committee may, in its discretion, include such further provisions and limitations in any Award Agreement, as it may deem equitable and in
the best interests of the Company. 
 Section 11. General Provisions Applicable to Awards. 

(a) Awards shall be granted for such cash or other consideration, if any, as the Committee determines; provided that in no event shall
Awards be issued for less than such minimal consideration as may be required by applicable law. 
 (b) Awards may, in the discretion of the
Committee, be granted either alone or in addition to or in tandem with any other Award or any award granted under any other plan of the Company. Awards granted in addition to or in tandem with other Awards, or in addition to or in tandem with awards
granted under any other plan of the Company, may be granted either at the same time as or at a different time from the grant of such other Awards or awards. 

(c) Subject to the terms of the Plan, payments or transfers to be made by the Company upon the grant, exercise or settlement of an Award may be
made in the form of cash, Shares, other Awards, other property, net settlement, or any combination thereof, as determined by the Committee in its discretion at the time of grant, and may be made in a single payment or transfer, in installments or on
a deferred basis, in each case in accordance with rules and procedures established by the Committee. Such rules and procedures may include provisions for the payment or crediting of reasonable interest on installment or deferred payments
or the grant or crediting of dividend equivalents in respect of installment or deferred payments. 

  
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 (d) No Award and no right under any Award shall be assignable, alienable, saleable or
transferable by a Participant otherwise than by will or pursuant to Section 11(e). During a Participant’s lifetime, each Award, and each right under any Award, shall be exercisable only by such Participant or, if permissible under
applicable law, by such Participant’s guardian or legal representative. The provisions of this Section 11(d) shall not apply to any Award that has been fully exercised or settled, as the case may be, and shall not preclude forfeiture
of an Award in accordance with the terms thereof. 
 (e) A Participant may designate a Beneficiary or change a previous Beneficiary
designation only at such times as prescribed by the Committee, in its sole discretion, and only by using forms and following procedures approved or accepted by the Committee for that purpose. 

(f) All certificates for Shares and/or other securities delivered under the Plan pursuant to any Award or the exercise thereof shall be subject
to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations and other requirements of the SEC, any stock market or exchange upon which such Shares or other securities are then
quoted, traded or listed, and any applicable securities laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

(g) The Committee may impose restrictions on any Award with respect to non-competition, confidentiality
and other restrictive covenants as it deems necessary or appropriate in its sole discretion. 
 Section 12. Amendment and
Terminations. 
 (a) Amendment or Termination of the Plan. Except to the extent prohibited by applicable law and unless otherwise
expressly provided in an Award Agreement or in the Plan, the Board may amend, alter, suspend, discontinue or terminate the Plan or any portion thereof at any time; provided, however, that no such amendment, alteration, suspension,
discontinuation or termination shall be made without (i) shareholder approval if such approval is required by applicable law or the rules of the stock market or exchange, if any, on which the Shares are principally quoted or traded or
(ii) subject to Section 5(c) and Section 10, the consent of the affected Participant, if such action would materially adversely affect the rights of such Participant under any outstanding Award, except (x) to the extent any
such amendment, alteration, suspension, discontinuance or termination is made to cause the Plan to comply with applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations or (y) to impose
any “clawback” or recoupment provisions on any Awards in accordance with Section 18. 
 (b) Dissolution or Liquidation.
In the event of the dissolution or liquidation of the Company, each Award shall terminate immediately prior to the consummation of such action, unless otherwise determined by the Committee. 

(c) Terms of Awards. The Committee may waive any conditions or rights under, amend any terms of, or amend, alter, suspend, discontinue
or terminate any Award theretofore granted, prospectively or retroactively, without the consent of any relevant Participant or holder or Beneficiary of an Award; provided, however, that, subject to Section 5(c) and
Section 10, no such action shall materially adversely affect the rights of any affected Participant or holder or Beneficiary under any Award theretofore granted under the Plan, except (x) to the extent any such action is made to cause the
Plan to comply with applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations, or (y) to impose any “clawback” or recoupment provisions on any Awards in accordance with
Section 16; provided further, that the Committee’s authority under this Section 12(c) is limited in the case of Awards subject to Section 9(b). Except as provided in Section 9, the Committee shall be authorized
to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of events 

  
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(including the events described in Section 5(c)) affecting the Company, or the financial statements of the Company, or of changes in applicable laws, regulations or accounting principles,
whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. 

(d) No Repricing. Notwithstanding the foregoing, except as provided in Section 5(c), the Committee shall not without the approval
of the shareholders of the Company, (i) reduce the exercise price or base price of any previously granted Option or SAR, (ii) cancel any previously granted Option or SAR in exchange for another Option or SAR with a lower exercise price or
base price, or (iii) cancel any previously granted Option or SAR in exchange for cash or another Award if the exercise price of such Option or the base price of such SAR exceeds the Fair Market Value of a Share on the date of such cancellation,
in each case other than in connection with a corporate transaction including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation,
split-up, spin-off, combination, or exchange of Shares. 

Section 13. Miscellaneous. 

(a) No Employee, Participant or other Person shall have any claim to be granted any Award under the Plan, and there is no obligation for
uniformity of treatment of employees, Participants or holders or Beneficiaries of Awards under the Plan. The terms and conditions of Awards need not be the same with respect to each recipient. Any Award granted under the Plan shall be a one-time Award that does not constitute a promise of future grants. The Company, in its sole discretion, maintains the right to make available future grants under the Plan. 

(b) The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of, or to continue to provide
services to, the Company or any Subsidiary. The receipt of any Award under the Plan is not intended to confer any rights on the receiving Participant except as set forth in the applicable Award Agreement. 

(c) Nothing contained in the Plan shall prevent the Company from adopting or continuing in effect other or additional compensation
arrangements, and such arrangements may be either generally applicable or applicable only in specific cases. 
 (d) The Company shall be
authorized to withhold from any Award granted or any payment due or transfer made under any Award or under the Plan or from any compensation or other amount owing to the Participant the amount (in cash, Shares, other Awards, other property, net
settlement, or any combination thereof) of applicable withholding taxes due in respect of an Award, its exercise or settlement or any payment or transfer under such Award or under the Plan and to take such other action (including providing for
elective payment of such amounts in cash or Shares by such Participant) as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such taxes; provided that if the Committee allows the withholding or
surrender of Shares to satisfy the Participant’s tax withholding obligations, the Company shall not allow Shares to be withheld in an amount that exceeds the minimum statutory withholding rates for federal and state tax purposes, including
payroll taxes. In the event ASC 718 is modified to allow higher amounts of Share withholding, the Company may satisfy tax withholding obligations using such levels of withholding permitted under ASC 718 that do not trigger liability accounting. 

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

  
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 (f) Neither the Plan nor any Award shall create or be construed to create a trust or separate
fund of any kind or a fiduciary relationship between the Company and a Participant or any other Person. To the extent that any Person acquires a right to receive payments from the Company pursuant to an Award, such right shall be no greater than the
right of any unsecured general creditor of the Company. 
 (g) No fractional Shares shall be issued or delivered pursuant to the Plan or any
Award, and the Committee shall determine whether cash or other securities shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise eliminated.

 Section 14. Effective Date of the Plan. This Plan shall be submitted to the shareholders of the Company for
approval at the Company’s 2018 annual meeting of shareholders and, if so approved, the Plan shall become effective as of the date the Plan was approved by the shareholders (the “Effective Date”). 

Section 15. Term of the Plan. No Award shall be granted under the Plan after the earliest to occur of (i) the tenth
anniversary of the Effective Date; (ii) the maximum number of Shares available for issuance under the Plan have been issued; or (iii) the Board terminates the Plan in accordance with Section 12(a). However, unless otherwise expressly
provided in the Plan or in an applicable Award Agreement, any Award theretofore granted may extend beyond such date, and the authority of the Committee to amend, alter, adjust, suspend, discontinue or terminate any such Award, or to waive any
conditions or rights under any such Award, and the authority of the Board to amend the Plan, shall extend beyond such date. 

Section 16. Cancellation or “Clawback” of Awards. The Committee shall have full authority to implement any policies and
procedures necessary to comply with Section 10D of the Exchange Act and any rules promulgated thereunder and any other regulatory regimes relating to clawback or recoupment. Notwithstanding anything to the contrary contained herein, the
Committee may, to the extent permitted by applicable law and stock exchange rules or by any applicable Company policy or arrangement, and shall, to the extent required, cancel or require reimbursement of any Awards granted to the Participant or
any Shares issued or cash received upon vesting, exercise or settlement of any such Awards or sale of Shares underlying such Awards. 

Section 17. Section 409A of the Code. With respect to Awards subject to Section 409A of the Code, the Plan
is intended to comply with the requirements of Section 409A of the Code and the regulations thereunder, and the provisions of the Plan and any Award Agreement shall be interpreted in a manner that satisfies the requirements of Section 409A
of the Code, and the Plan shall be operated accordingly. If any provision of the Plan or any term or condition of any Award would otherwise frustrate or conflict with this intent, the provision, term or condition shall be interpreted and deemed
amended so as to avoid this conflict. Notwithstanding anything else in the Plan, if the Board considers a Participant to be a “specified employee” under Section 409A of the Code at the time of such Participant’s “separation
from service” (as defined in Section 409A of the Code), and the amount hereunder is “deferred compensation” subject to Section 409A of the Code, any distribution that otherwise would be made to such Participant with respect
to an Award as a result of such “separation from service” shall not be made until the date that is six months after such “separation from service,” except to the extent that earlier distribution would not result in such
Participant’s incurring interest or additional tax under Section 409A of the Code. If the Award includes a “series of installment payments” (within the meaning of 

  
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Section 1.409A-2(b)(2)(iii) of the Treasury Regulations), the Participant’s right to the series of installment payments shall be treated as
a right to a series of separate payments and not as a right to a single payment. Notwithstanding the foregoing, the tax treatment of the benefits provided under the Plan or any Award Agreement is not warranted or guaranteed, and in no event shall
the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A of the Code. 

Section 18. Successors and Assigns. The terms of the Plan shall be binding upon and inure to the benefit of the Company and any
successor entity. 
 Section 19. Governing Law. The Plan and each Award Agreement shall be governed by the laws of the State of
Washington, without application of the conflicts of law principles thereof. 

  
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