Document:

HomeStreet, Inc. Executive Deferred Compensation Plan

 Exhibit 10.6 
 HOMESTREET, INC. EXECUTIVE DEFERRED COMPENSATION PLAN 
 ARTICLE I

 PURPOSE 
 This nonqualified Deferred Compensation Plan (the “Plan”) for eligible management or highly-compensated employees of HomeStreet, Inc., HomeStreet Bank, and HomeStreet Capital Corporation (all of
which are referred to hereinafter as the “Employer”) is designed to permit eligible management or highly-compensated employees of the Employer to elect to defer all or a portion of their bonuses, commissions, and other variable pay
(excluding draws) that would be earned in a calendar year, provided that election is made in accordance with the terms of this Plan. 
 ARTICLE II 
 DEFINITIONS 

2.1 Administrator. “Administrator” of the Plan means the Controller of HomeStreet, Inc. and HomeStreet Bank. 

2.2 Board. “Board” means the Board of Directors of HomeStreet, Inc. 

2.3 Committee. “Committee” means the Human Resource and Corporate Governance Committee appointed by the HomeStreet Bank
Board. 
 2.4 Effective Date. The “Effective Date” of this amended and restated Plan is January 1, 2005.
The original effective date of this Plan is February 1, 2004. This Plan document supersedes any previously adopted Plan document and is intended to comply with Internal Revenue Code Section 409A and applicable IRS and Treasury guidance and
regulations. 
 2.5 Eligible Employee. “Eligible Employee” means an employee who is selected by the Committee
from among the group of management or highly compensated employees of the Employer. 

 2.6 Participant. “Participant” means any Eligible Employee. 

2.7 Plan. “Plan” means the HomeStreet, Inc. Executive Deferred Compensation Plan as contained in this
document, and as amended from time to time, plus any administrative rules or regulations adopted by the Controller. 
 2.8
Plan Year. “Plan Year” of this amended and restated Plan means the calendar year. 
 ARTICLE III 

DEFERRED COMPENSATION 
 3.1 Elective Deferrals. Annually during the month of December, an Eligible Employee may irrevocably elect in writing on a form provided by the Employer to defer all or a portion of his or her
annual bonus, commissions and other variable pay (excluding draws) that would otherwise be earned in the following Plan Year. Notwithstanding the preceding sentence, if the Eligible Employee’s annual bonus, commissions, and other variable pay
(excluding draws) for a Plan Year performance period is performance-based compensation, then the Eligible Employee may irrevocably elect by June 30 of that Plan Year performance period in writing on a form provided by the Employer to defer all
or a portion of his or her annual bonus, commissions, and other variable pay (excluding draws) that is performance-based compensation for that Plan Year performance period. 
 For purposes of this Section 3.1, performance-based compensation means compensation that is contingent (either as to the amount or the entitlement to receipt) on the satisfaction of pre-established
organizational or individual performance goals that relate to a Plan Year performance period of at least 12 consecutive months. An Eligible Employee’s initial deferral election for a Plan Year performance period may be made for
performance-based compensation by the date six months before the end of the performance period (June 30), if (i) the Eligible Employee performs 

 

  
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 services continuously from the later of the date the performance period starts (January 1) or the date the
performance criteria for that Plan Year performance period are established through the date the initial deferral election for that Plan Year performance period is made, and (ii) no election to defer performance-based compensation is made after
the compensation is substantially certain to be paid. 
 Organizational or individual performance criteria are considered
preestablished if they are established in writing by not later than 90 days after the commencement of the Plan Year performance period to which the criteria relates, provided that the outcome is substantially uncertain at the time the criteria are
established. 
 If bonuses, commissions, and other variable pay (excluding draws) are performance-based compensation, Eligible
Employees may elect in writing by June 30 of each Plan Year performance period to defer a percentage or a specified dollar amount of their bonuses, commissions and other variable pay (excluding draws) for that Plan Year performance period that
would otherwise be paid in the next Plan Year. In that case, an Eligible Employee may elect that the percentage of bonuses, commissions, and other variable pay (excluding draws) to be deferred will be based on bonuses, commissions, and variable pay
that exceed a specified dollar amount. For example, an Eligible Employee may elect by June 30, 2008 to defer 50% of the sum of his or her bonuses, commissions, and other variable pay that constitute performance-based compensation for the 2008
Plan Year performance period and that exceed $20,000. 
 Any long-term incentive compensation paid in stock or any other
compensation paid in stock may not be deferred. The amount to be deferred by an Eligible Employee for a Plan Year performance period must be at least the lesser of $2,500 or 5% of the Eligible Employee’s total 

  
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 annual bonus, commissions, and other variable pay (excluding draws) for that Plan Year performance period.

 Notwithstanding any language in this Paragraph 3.1 to the contrary, an Eligible Employee who first becomes eligible to
participate in the Plan on a date after January 1 may elect to defer receipt of all or a portion of his or her annual bonuses, commissions, and other variable pay (excluding draws) for services to be performed subsequent to his or her deferral
election in the remainder of the initial Plan Year of eligibility. That election must be made in writing within thirty (30) days after the Eligible Employee becomes eligible to participate in this Plan, and shall be irrevocable as to any annual
bonuses, commissions, and other variable pay (excluding draws) for services to be performed subsequent to his or her deferral election in the remainder of that Plan Year. 
 3.2 Employer Contributions. The Employer shall make an Employer contribution to the Plan on behalf of senior management committee members for each calendar year beginning with 2004. The
amount of that Employer contribution shall be equal to the additional Employer contributions (Employer discretionary profit sharing contributions, Employer discretionary matching contributions, and ESOP contributions) that would have been made to
the HomeStreet, Inc. 401(k) Savings and Employee Stock Ownership Plan (“401(k) and ESOP”) based on senior management committee members’ Compensation that was not deferred under the Executive Deferred Compensation Plan (as Compensation
is defined for purposes of each type of contribution under the 401 (k) and ESOP) if (a) the Internal Revenue Code Section 401(a)(17) compensation dollar limit did not apply to the 401(k) and ESOP, and (b) the Internal Revenue
Code Section 415 annual addition limit did not apply to reduce such Employer contributions to the 401(k) and ESOP, plus (c) a deemed rate of earnings on the amount by which such Employer 

  
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 contributions to the 401 (k) and ESOP were required to be reduced to meet the Internal Revenue Code
Section 415 annual addition limit, with that deemed earnings rate determined by the Committee in its discretion. 
 3.3
Initial Election As To Time and Form of Payment. A Participant’s written deferral election for a particular Plan Year must also include the Participant’s initial written election of the time and form of payment of his or her Plan
deferrals for that Plan Year, adjusted to reflect the applicable deemed earnings on such deferrals, as described in Article IV below. A Participant who may be entitled to an Employer contribution under Paragraph 3.2 above for a particular Plan Year
must make an initial written election of the time and form of payment of the Employer contribution for that Plan Year by December 31 of the calendar year preceding that Plan Year. 

3.4 December 31, 2008 Election Deadline. Notwithstanding any provision of this Plan to the contrary, an individual who is an
Eligible Employee may make his or her initial elections as to the time and form of payment of his Plan benefits that were deferred for each Plan Year prior to 2009 and that were not otherwise payable by the Plan to the Participant in those Plan
Years, if those initial time and form of payment elections are made by December 31, 2008. 
 ARTICLE IV 

FORM AND TIME OF BENEFIT PAYMENT 
 4.1 Initial Election of Form and Time of Payment. A Participant’s Plan benefits shall be 100% vested and nonforfeitable at all times. A Participant (or if a Participant dies before payments
commence, a deceased Participant’s beneficiary) shall commence to receive a distribution of his or her Plan deferrals for a particular Plan Year, adjusted to reflect the applicable deemed earnings on such deferrals, upon the occurrence of the
earliest of (1) a future date specified by the Participant in his or her deferral election for that Plan Year, (2) the 

  
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 Participant’s death, (3) the Participant’s Permanent Disability as defined in Paragraph 9.7,
(4) the Participant’s retirement on or after age 65, or (5) the Participant’s termination of employment. A Participant who may be entitled to an Employer contribution under Paragraph 3.2 above for a particular Plan Year must make
an initial written election of the time of payment of the Employer contribution for that Plan Year within the time described in Paragraph 3.3 above, and that time of payment must be the earliest of (1) a future date specified by the Participant
in his or her election of the time of payment for Employer contributions for that Plan Year, or (2) the Participant’s death, (3) the Participant’s Permanent Disability as defined in Paragraph 9.7, (4) the Participant’s
retirement on or after age 65, or (5) the Participant’s termination of employment. 
 At the time the
Participant’s initial time of payment election is made for a particular Plan Year, the Participant must also elect in writing to receive the Participant’s deferrals or Employer contributions for a particular Plan Year in the form of:

  

	 	a.	a single lump sum payment, or 

  

	 	b.	annual installment payments over a period of years, but not more than (10) years. 

4.2 Election to Change Form of Payment. A Participant who initially elects a form of payment for a particular Plan Year’s
deferrals or Employer contributions may later elect to change the form of payment the Participant previously elected for those deferrals or Employer contributions to another form of permitted payment (for example, from a lump sum to installments
payable over a period of up to 10 years, or vice versa), as long as (1) that new election is made at least 12 months prior to the earlier of (a) the specified payment date previously elected by the Participant for payment of that
particular Plan Year’s deferrals or Employer contributions or (b) the date the Participant retires or terminates employment, (2) the 

  
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 distribution date is changed to a date at least five years after the earlier of (a) the applicable
specified date previously elected by the Participant for payment of those deferrals or Employer contributions or (b) the date the Participant retired or terminated employment, and (3) the election change does not take effect for at least
12 months after it is made in writing and delivered to the Plan Administrator. 
 4.3 Election to Change Time of Payment.
A Participant who initially elects the time of payment for a particular Plan Year’s deferrals or Employer contributions may later elect to change the time of payment the Participant previously elected for those deferrals or Employer
contributions to the earliest of a new future date specified by the Participant, the Participant’s death or Permanent Disability, or the date the Participant retires or terminates employment, as long as (1) that new election is made at
least 12 months prior to the earlier of (a) the specified payment date previously elected by the Participant for payment of that particular Plan Year’s deferrals or Employer contributions or (b) the date the Participant retires or
terminates employment, (2) the distribution date is changed to a date at least five years after the earlier of (a) the applicable specified date previously elected by the Participant for payment of those deferrals or Employer contributions
or (b) the date the Participant retired or terminated employment, and (3) the election change does not take effect for at least 12 months after it is made in writing and delivered to the Plan Administrator. 

4.4 Participant’s Death or Permanent Disability. The five year deferral in the payment date does not apply in the case of the
Participant’s death or Permanent Disability. Payment will commence at the time of the Participant’s death or Permanent Disability if payment of the Participant’s Plan deferrals or Employer contributions for a particular Plan Year has
not begun at the time of the Participant’s death or Permanent Disability. Notwithstanding the 

  
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 foregoing, if a Participant is receiving installment payments and dies before all installments have been
paid, the Participant’s beneficiary shall be paid the Participant’s remaining installment payments. 
 4.5 No
Initial Election of Form of Payment. If a Participant makes no initial election of the form of payment for a particular Plan Year’s deferrals or Employer contributions, then the Participant’s deferrals for that Plan Year, adjusted to
reflect deemed earnings, shall be paid in a lump sum at the time payable under this Plan. 
 4.6 Payment Commencement
Date. Payments from the Plan shall commence no later than 60 days following the applicable distribution date as provided in this Article IV, and a Participant shall not be permitted, directly of indirectly, to designate the tax year of any
payment. 
 ARTICLE V 
 EARNINGS CREDITED 
 The Plan will establish and maintain separate Employer
recordkeeping accounts for each Participant’s deferrals or Employer contributions for a particular Plan Year. Such accounts shall be credited with a deemed earnings rate to be determined by the Committee and communicated to the Participants.
The Committee may amend that deemed earnings rate prospectively in its discretion, and shall communicate to Plan Participants any change in that deemed earnings rate. 
 ARTICLE VI 
 BENEFICIARIES 

6.1 Designation. Any amount due to a Participant which is unpaid upon his or her death shall be paid to the beneficiary designated
by him or her on a form provided by the Administrator and filed with the Administrator. The designated beneficiary may be changed from time to time by filing a new beneficiary designation with the Administrator. The designation last filed will
control. 

  
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 6.2 Failure to Designate a Beneficiary. If a Participant fails to designate a
beneficiary or if the person or persons designated on the beneficiary designation predecease the Participant and the beneficiary designation form does not indicate who receives the amount due, the amount owing shall be paid to the following in the
order named: 
  

	 	a.	Surviving spouse; 

  

	 	b.	Surviving descendants, per stirpes; 

  

	 	c.	Surviving parents in equal shares; 

  

	 	d.	Surviving brothers and sisters, in equal shares, provided that the share of a sibling who is then deceased shall be paid to his or her then living descendants, per
stirpes; and 

  

	 	e.	Executors or administrators. 

6.3 Payment to a Beneficiary. Payment of a Participant’s Plan benefits to the beneficiary of a deceased Participant shall be
made in accordance with Article IV. 
 ARTICLE VII 
 ADMINISTRATION 
 The Controller is the Administrator of this Plan. The
construction and interpretation by the Administrator of any provision of this Plan shall be final, conclusive and binding upon all parties. The Administrator shall have the power and authority in its sole discretion to adopt, interpret, alter, amend
or revoke rules and regulations necessary to assist it in the administration of the Plan, and to delegate ministerial duties and employ such outside professionals as may be required for prudent administration of the Plan. Expenses of Plan
administration shall be paid by the Employer. 
 Social Security (“FICA”) taxes are due on the Participant’s
deferrals, including any Employer contributions, at the time of such deferrals or contributions. The Employer shall 

  
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 withhold applicable FICA taxes at the appropriate times from the Participant’s non-deferred
compensation. 
 All amounts payable to a Participant hereunder may be reduced by any federal and state income taxes imposed
upon the Participant or his or her beneficiary, which are required to be withheld from such payments. 
 ARTICLE VIII

 AMENDMENT AND TERMINATION 
 8.1 Amendment. The Board of Directors of HomeStreet, Inc. shall have the right to amend the Plan at any time and from time to time, in whole or in part. The Board of Directors of HomeStreet, Inc.
hereby delegates to the Committee the right to amend the Plan. Any amendment adopted by the Committee pursuant to this delegated authority shall be reported to the Board of Directors within two and one-half (2 1/2) months after the close of
the Plan Year of adoption. The Board or the Committee shall notify each Participant in writing of any Plan amendment. 
 8.2
Termination. Although the Board of Directors of HomeStreet, Inc. has established this Plan with a bona fide intention and expectation to maintain the Plan indefinitely, the Board of Directors of HomeStreet, Inc. may terminate or discontinue the
Plan in whole or in part at any time without any liability for such termination or discontinuance. Upon Plan termination, all deferrals and Employer contributions shall cease. No amendment or Plan termination shall adversely affect the rights of any
Participant to his or her deferred compensation under the Plan which has accrued prior to the date of such amendment or Plan termination, adjusted to reflect the applicable deemed earnings on such deferrals. If the Plan is terminated,
Participants’ past deferrals and Employer contributions, credited with earnings as 

  
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 described in Article V, shall be paid at the time and in the form described above in Articles III and IV.

 ARTICLE IX 
 MISCELLANEOUS 
 9.1 Representations. The Employer does not represent
or guarantee that any particular federal or state income, payroll, or personal property or other tax consequence will result from participation in the Plan. A Participant should consult with his or her tax advisor to determine the tax consequences
of his or her participation. 
 9.2 Limitation of Rights; Employment Relationship. Nothing contained herein shall be
construed as giving a Participant or other person any legal or equitable right against the Employer except as provided in the Plan, or create a right in the Participant to remain under contract with the Employer, nor will it interfere with the right
of the Employer to discharge or otherwise deal with a Participant without regard to the existence of the Plan. 
 9.3
Assignment. No amounts deferred hereunder shall be assignable in whole or in part, either by voluntary or involuntary act or operation of law. Rights hereunder are not subject to anticipation, alienation, sale, transfer, assignment, pledge or
encumbrance, and such rights may not be subject to the debts, contracts, liabilities, engagements or torts of the Participant or his or her beneficiary. 
 9.4 Unsecured Benefit. The unpaid balance of any account maintained pursuant to this Plan is an unsecured, general obligation of the Employer. All amounts deferred hereunder remain the unrestricted
assets of the Employer. Any assets purchased shall remain the sole property of the Employer subject to the claims of its general creditors and shall be available for the Employer’s use for whatever purpose desired. No Participant hereunder
shall have any right other than the unsecured promise of the Employer to pay deferred compensation in the future. 

  
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 No Participant has ownership rights with respect to any asset of the Employer by reason of his or her
participation in this Plan. 
 9.5 Severability. If a court of competent jurisdiction holds any provision of this Plan to
be invalid or unenforceable, the remaining provisions of the Plan shall continue to be fully effective. 
 9.6 Governing
Law. The Plan shall be construed, administered and enforced according to the laws of the State of Washington. Venue shall also be in the State of Washington. 
 9.7 Definition of Permanent Disability. “Permanent Disability,” for purposes of this Plan, means that the Participant (a) is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (b) is, by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident
and health plan covering employees of the Participant’s Employer. 
 ARTICLE X 

CLAIMS PROCEDURE 
 If a Participant disagrees with the information or computations in connection with any benefits paid pursuant to Article IV, or the Plan Administrator fails to make payments to which the Participant
believes he or she is entitled under the terms of this Plan, the Participant may make a claim to the Plan Administrator. A claim must be in the form of a letter stating the basis of the disagreement and include all relevant facts and information.
The Participant shall be advised of the acceptance or rejection of a claim within ninety (90) days after the claim is 

  
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 received, unless special circumstances require an extension of time for processing the claim. If the Plan
Administrator requires an extension, written notice of the extension stating the special circumstances requiring the extension of time and the date by which the Plan Administrator will make a final decision shall be furnished to the Participant
prior to the end of the initial ninety (90) day period. The extension may not exceed an additional period of ninety (90) days. 
 If the claim is denied, the Plan Administrator shall state in detail: 
  

	 	1.	the specific reasons for the denial; 

  

	 	2.	the specific Plan provisions upon which the denial is based; 

  

	 	3.	any additional material or information which the Participant may provide which would entitle the Participant to the benefits claimed; and 

 

	 	4.	an explanation of why such material or information is necessary. 

 The notice of denial must also explain the steps to be taken if the Participant or a beneficiary wishes to submit a claim for review. If notice of denial of the initial claim is not furnished within the
time period allowed above, the claim shall be deemed denied and the Participant may proceed to request a review of the denied claim. 
 A claim for review by the Plan Administrator must be submitted within sixty (60) days after the date the initial claim is denied. A request for review of a denied claim must include a statement of
the reasons the claim should be allowed. The Participant or an authorized representative may examine any documents the Plan Administrator has in its files and will use in reaching a decision, and may also submit additional written comments to the
Plan Administrator which support the claim. 
 The Plan Administrator shall advise the Participant or beneficiary of its
decision in writing within sixty (60) days following receipt of the request for review, unless special 

  
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 circumstances require an extension of time for processing. If the Plan Administrator requires an extension,
written notice of the extension stating the special circumstances requiring the extension of time and the date by which the Plan Administrator will make a final decision shall be furnished to the Participant prior to the end of the initial sixty
(60) day period. The extension may not exceed an additional period of ninety (90) days. 
 The Plan
Administrator’s decision on review shall be in writing and include specific reasons for the decision, as well as specific references to the Plan provisions upon which the decision is based. The decision of the Plan Administrator is final and
subject to no further appeal or review. 
 IN WITNESS WHEREOF, the Employer has caused this Plan to be executed by its duly
authorized representatives this 19th day of December, 2008. 
  

			
	HOMESTREET, INC.
	 By
	 	 /s/ Bruce W. Williams

		 	 Its CEO

	
	 HOMESTREET BANK

	 By
	 	 /s/ Joan Enticknap

		 	 Its President

	
	 HOMESTREET CAPITAL CORPORATION

	 By
	 	 /s/ Debra L. Johnson

		 	 Its CFO

  
 14Form of HomeStreet, Inc. Award Agreement for Nonqualified Stock Options

 Exhibit 10.7 
 FORM OF 
 HOMESTREET, INC. 

AWARD AGREEMENT FOR 
 NONQUALIFIED STOCK OPTIONS 
 FOR GOOD AND VALUABLE CONSIDERATION, HomeStreet, Inc. (the
“Company”), hereby grants to Participant named below the nonqualified stock option (the “Option”) to purchase any part or all of the number of shares of its common stock, par value ______ (the “Common Stock”), that are
covered by this Option, as specified below, at the Exercise Price per share specified below and upon the terms and subject to the conditions set forth in this Award Agreement, the Standard Terms and Conditions (the “Standard Terms and
Conditions”) attached hereto, and those provisions of the HomeStreet, Inc. 2010 Equity Incentive Plan (the “Plan”) incorporated herein by reference. This Option is subject to and qualified in its entirety by the Standard Terms and
Conditions; however, to the extent this Option expressly addresses a matter set forth in the Standard Terms and Conditions, and the provisions of this Option differ from such Standard Terms and Conditions, this Option shall govern such matters and
the remaining Standard Terms and Conditions shall be otherwise unmodified. This Option is granted outside the Plan, pursuant to a Board resolution dated July 1, 2010; however it is intended to be granted under substantially identical terms, and
therefore certain provisions of the Plan are incorporated herein by reference. 
  

			
	 Name of Participant:
	  	
		
	Grant Date:	  	
		
	 Number of Shares of Common

Stock covered by Option:
	  	
		
	Exercise Price Per Share:	  	
		
	Expiration Date:	  	 Ten (10) years after date of grant unless terminated earlier

		
	Vesting Schedule:	  	 25% on date of grant
 25% on
the earlier of one year or upon a capital raise
 25% on the earlier of two years or upon termination of the Cease and Desist Order

25% on three year anniversary from date of grant

 This Option is not intended to qualify as an incentive stock option under Section 422 of the Code. By accepting this Award Agreement, Participant acknowledges that he or she has received; and read,
and agrees that this Option shall be subject to, the terms of this Award Agreement and the Standard Terms and Conditions. 
  

			
	 HOMESTREET, INC.
	  	                             
                                         
                                         
                      
		  	                            
Participant Signature
	
By                       
                                         
                                         
       
	  	
	Title:                            
                                         
                                       	  	Address (please print):
		  	                             
                                         
                                         
                      
		  	                             
                                         
                                         
                      

 HOMESTREET, INC. 

STANDARD TERMS AND CONDITIONS FOR 
 NONQUALIFIED STOCK OPTIONS 
 These Standard Terms and Conditions apply to the Options
granted outside the HomeStreet, Inc. 2010 Stock Incentive Plan (the “Plan”), which are identified as nonqualified stock options and are evidenced by an Award Agreement that specifically refers to these Standard Terms and Conditions. In
addition to the specific Standard Terms and Conditions set forth below, the Option shall be subject to the following applicable terms of the Plan, which are incorporated into these Standard Terms and Conditions by this reference: Sections 2, 7, 12,
13, 14, and 15. Capitalized terms not otherwise defined herein shall have the meaning set forth in Section 2 of the Plan. 
  

	1.	TERMS OF OPTION 

HomeStreet, Inc. (the “Company”), has granted to the Participant named in the Award Agreement provided to said Participant
herewith (the “Award Agreement”) a nonqualified stock option (the “Option”) to purchase up to the number of shares of the Company’s common stock (the “Common Stock”), set forth in the Award Agreement. The exercise
price per share and the other terms and subject to the conditions of the Option are set forth in the Award Agreement, these Standard Terms and Conditions (as amended from time to time), and the incorporated provisions of the Plan. For purposes of
these Standard Terms and Conditions and the Award Agreement, any reference to the Company shall include a reference to any Subsidiary. 
  

	2.	NONQUALIFIED STOCK OPTION 

The Option is not intended to be an incentive stock option under Section 422 of the Code and will be interpreted accordingly.

  

	3.	EXERCISE OF OPTION 

 On
and after the Grant Date, to the extent not previously exercised, and subject to termination or acceleration as provided in these Standard Terms and Conditions, the Option shall be exercisable only to the extent it becomes vested, as described in
the Award Agreement or the terms of the Plan, to purchase up to that number of shares of Common Stock as set forth in the Award Agreement, provided that (except as set forth in Section 4.A below) the Participant remains employed with the
Company and does not experience a Termination of Service. The vesting period and/or exercisability of an Option may be adjusted by the Board to reflect the decreased level of employment during any period in which the Participant is on an approved
leave of absence or is employed on a less than full time basis. The Option shall become fully vested upon a Change in Control under the terms in Section 14 of the Plan. 
 To exercise the Option (or any part thereof), the Participant shall deliver to the Company a “Notice of Exercise” in a form specified by the Board, specifying the number of whole shares of
Common Stock the Participant wishes to purchase and how the Participant’s 

 
shares of Common Stock should be registered (in the Participant’s name only or in the Participant’s and the Participant’s spouse’s names as community property or as joint
tenants with right of survivorship). 
 The exercise price (the “Exercise Price”) of the Option is set forth in the
Award Agreement. The Company shall not be obligated to issue any shares of Common Stock until the Participant shall have paid the total Exercise Price for that number of shares of Common Stock. The Exercise Price may be paid in Common Stock, cash or
a combination thereof, including an irrevocable commitment by a broker to pay over such amount from a sale of the Common Stock issuable under the Option, the delivery of previously owned Common Stock, withholding of shares of Common Stock
deliverable upon exercise of the Option, or in another manner, all as may be permitted by the Board. 
 Fractional shares may not
be exercised. Shares of Common Stock will be issued as soon as practical after exercise. Notwithstanding the above, the Company shall not be obligated to deliver any shares of Common Stock during any period when the Company determines that the
exercisability of the Option or the delivery of shares of Common Stock hereunder would violate any federal, state or other applicable laws. 
  

	4.	EXPIRATION OF OPTION 

 The
Option shall expire and cease to be exercisable as of the earlier of (a) the Expiration Date set forth in the Award Agreement or (b) the date specified below in connection with the Participant’s Termination of Service: 

 

	 	A.	If the Participant’s Termination of Service is by reason of death or Disability, the Participant (or the Participant’s estate, beneficiary or legal
representative) may exercise the Option, to the extent then vested, until the date that is twelve months following the date of such Termination of Service. The unvested portion of the Option shall be forfeited and cancelled as of the date of such
event. 

  

	 	B.	If the Participant’s Termination of Service is for any reason other than death, Disability or Cause, the Participant may exercise any portion of the Option that is
vested and exercisable at the time of such Termination of Service until the date that is ninety (90) days following the date of such Termination of Service. Any portion of the Option that is not vested and exercisable at the time of such
Termination of Service (after taking into account any accelerated vesting under Section 14 of the Plan or any other agreement between the Participant and the Company, if applicable) shall be forfeited and canceled as of the date of such
Termination of Service. 

  

	 	C.	If the Participant’s Termination of Service is by the Company for Cause, the entire Option, whether or not then vested and exercisable, shall be immediately
forfeited and canceled as of the date of such Termination of Service. 

  

	5.	RESTRICTIONS ON RESALES OF SHARES ACQUIRED PURSUANT TO OPTION EXERCISE 

  
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 Shares issued upon the exercise of the Option shall be subject to the terms of a Shareholder
Agreement restricting transfer of the shares, which Shareholder Agreement shall be substantially similar to the form set forth as Exhibit A hereto. Any shares issued upon the exercise of this Option shall bear a legend endorsed on the shares of
Common Stock reflecting the existence of the Shareholder Agreement. The form of such legend shall be as reasonably prescribed by the Company or its counsel, and shall be in addition to any legends required for compliance with applicable securities
and Blue Sky laws. The Company may also impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by the Participant or other subsequent transfers by the Participant of any shares of
Common Stock issued as a result of the exercise of the Option, including without limitation (a) restrictions under an insider trading policy, (b) restrictions designed to delay and/or coordinate the timing and manner of sales by
Participant and other optionholders and (c) restrictions as to the use of a specified brokerage firm for such resales or other transfers. 
  

	6.	INCOME TAXES 

 The Company
shall not deliver shares of Common Stock in respect of the exercise of any Option unless and until the Participant has made arrangements satisfactory to the Board to satisfy applicable withholding tax obligations. Unless the Participant pays the
withholding tax obligations to the Company by cash or check in connection with the exercise of the Option, withholding may be effected, at the Company’s option, by withholding Common Stock issuable in connection with the exercise of the Option
(provided that shares of Common Stock may be withheld only to the extent that such withholding will not result in adverse accounting treatment for the Company). The Participant acknowledges that the Company shall have the right to deduct any taxes
required to be withheld by law in connection with the exercise of the Option from any amounts payable by it to the Participant (including, without limitation, future cash wages). 

 

	7.	NON-TRANSFERAB1LITY OF OPTION 

 Except as permitted by the Board or as permitted under the Plan, the Participant may not assign or transfer the Option to anyone other than by will or the laws of descent and distribution and the Option
shall be exercisable only by the Participant during his or her lifetime. The Company may cancel the Participant’s Option if the Participant attempts to assign or transfer it in a manner inconsistent with this Section 7. 

 

	8.	OTHER AGREEMENTS SUPERSEDED 

 The Award Agreement, these Standard Terms and Conditions, the incorporated provisions of the Plan, and the Shareholder Agreement, constitute the entire understanding between the Participant and the
Company regarding the Option. Any prior agreements, commitments or negotiations concerning the Option are superseded. 

  
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	9.	LIMITATION OF INTEREST IN SHARES SUBJECT TO OPTION 

 Neither the Participant (individually or as a member of a group) nor any beneficiary or other person claiming under or through the Participant shall have any right, title, interest, or privilege in or to
any shares of Common Stock subject to the Award Agreement or these Standard Terms and Conditions except as to such shares of Common Stock, if any, as shall have been issued to such person upon exercise of the Option or any part of it. Nothing in the
Plan, in the Award Agreement, these Standard Terms and Conditions or any other instrument shall confer upon the Participant any right to continue in the Company’s employ or service nor limit in any way the Company’s right to terminate the
Participant’s employment at any time for any reason. 
  

	10.	GENERAL 

 In the event
that any provision of these Standard Terms and Conditions is declared to be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal,
valid and enforceable, or otherwise deleted, and the remainder of these Standard Terms and Conditions shall not be affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision. 

The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part
of these Standard Terms and Conditions, nor shall they affect its meaning, construction or effect. 
 These Standard Terms and
Conditions shall inure to the benefit of and be binding upon the parties hereto and their respective permitted heirs, beneficiaries, successors and assigns. 
 These Standard Terms and Conditions shall be construed in accordance with and governed by the laws of the State of Washington, without regard to principles of conflicts of law. 

In the event of any conflict between the Award Agreement, these Standard Terms and Conditions and the Plan, the Award Agreement and these
Standard Terms and Conditions shall control. In the event of any conflict between the Award Agreement and these Standard Terms and Conditions, the Award Agreement shall control. 

All questions arising under these Standard Terms and Conditions shall be decided by the Board in its total and absolute discretion.

  

	11.	ELECTRONIC DELIVERY 

 By
executing the Award Agreement, the Participant hereby consents to the delivery of information (including, without limitation, information required to be delivered to the Participant pursuant to applicable securities laws) regarding the Company and
the Subsidiaries, the Plan, the Option and the Common Stock via Company web site or other electronic delivery. 

  
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