Document:

Employment Agreement between the Company and Robert T. Clemmens

 Exhibit 10(e)(5) 
 EMPLOYMENT AGREEMENT 
 of 
 ROBERT T. CLEMMENS 
 EMPLOYMENT AGREEMENT (this “Agreement”),
dated as of December 8, 2006 and effective as of the Effective Date (as defined below), between NEWSTAR FINANCIAL, INC., a Delaware corporation (the “Company”), and Robert T. Clemmens (“Executive”). 

In consideration of the mutual agreements set forth below and for other good and valuable consideration given by each party to this Agreement to the
other, the receipt and sufficiency of which are hereby acknowledged, the Company agrees to employ Executive and Executive agrees to serve the Company as an employee pursuant to the terms and subject to the conditions that follow. 
 1. Employment. The Company hereby agrees to employ Executive, and Executive hereby agrees to accept employment with the Company, upon the
terms and conditions contained in this Agreement, effective on the effective date of the IPO (as defined below) (the “Effective Date”). Executive’s employment with the Company shall continue, subject to earlier termination of
such employment pursuant to the terms hereof, until the second (2nd) anniversary of the Effective Date and thereafter shall automatically renew for one additional one (1) year period, unless a notice of intent not to renew shall be
delivered in accordance with Section 14 by either the Company or Executive, as the case may be, at least ninety (90) days prior to such anniversary date or prior to the expiration of such one year renewal period, as the case may be (such
term, as and when so extended, the “Employment Period”). Executive represents to the Company that he has no present intention to terminate employment with the Company. 
 2. Duties. During the Employment Period, Executive shall serve on a full-time basis as Chief Credit Officer – Middle Market and
Structured Products Group of the Company. Executive’s duties and responsibilities as the Chief Credit Officer – Middle Market and Structured Products Group of the Company shall include those duties customarily associated with an officer
with a similar title or as may be assigned to him from time to time by the Chief Executive Officer of the Company. Executive shall devote his full business time attention and energies and use his best efforts in his employment with the Company;
provided, however, that this Agreement shall not be interpreted as prohibiting Executive from in accordance with the policies and procedures of the Company, managing his personal affairs or engaging in charitable or civic activities, so long as, in
each case, such activities do not interfere in any material respect with the performance of Executive’s duties and responsibilities hereunder. 
 3. Compensation and Benefits. In consideration of entering into this Agreement and as full compensation for Executive’s services hereunder, during the Employment Period, Executive shall receive the following compensation
and benefits: 

 (a) Base Salary. The Company shall pay to Executive a base salary (“Base Salary”)
of $250,000 per year, payable in accordance with the payroll policies from time to time in effect at the Company. Executive’s Base Salary may be subject to increase (but shall not be subject to decrease) on an annual basis as the Board of
Directors of the Company or any committee thereof (the “Board of Directors”) shall determine. 
 (b) Incentive
Bonuses. Executive shall be entitled to participate in such incentive bonus programs as the Board of Directors may adopt from time to time for members of senior management of the Company (“Incentive Bonus”). 
 (c) Vacation. Executive shall be entitled to five (5) weeks of paid vacation per calendar year, accrued in accordance with the usual vacation
policies in effect at the Company. 
 (d) Other Benefits. Executive shall participate in and be eligible to receive, but without
duplication, all other benefits (i.e., benefits other than those of the types covered in Sections 3(a)–(c)) offered to senior executives of the Company, including, without limitation, retirement income plans and health and welfare plans,
under and in accordance with the provisions of any employee benefit plan adopted or to be adopted by the Company (collectively, the “Benefit Plans”)other than any severance benefits offered to senior executives in accordance with
any such plan. Except as set forth herein, Executive shall not be entitled to any other benefits. 
 (e) Retiree Health Program. For
purposes of Section 6 hereof, the “Retiree Health Program” shall mean a health insurance plan, with a reputable insurance provider that is sponsored by the Company and provides benefits that are substantially similar to those
provided to then current employees, participation in which is paid for solely by Executive. The Company will use its reasonable best efforts to ensure that any Retiree Health Program provides coverage for Executive if, as of the date hereof,
Executive is eligible for insurance under the Company’s current health insurance plan. 
 4. Reimbursement for Expenses.
During the Employment Period, Executive shall be entitled to incur on behalf of the Company reasonable and necessary expenses in connection with his duties in accordance with Company’s policies and the Company shall pay for or reimburse
Executive for all such expenses upon presentation of proper receipts therefor. The Executive shall comply with such reasonable limitations and reporting requirements with respect to such expenses as the Board of Directors may establish from time to
time. 
 5. Termination. Executive’s employment hereunder may be terminated as follows (each, a “Termination
Event”): 
 (a) Automatically in the event of the death of Executive; 

 (b) At the option of the Company, by the Board of Directors (acting through the Chairman or Secretary) or
by written notice to Executive in the event of the Permanent Disability of Executive. As used herein, the term “Permanent Disability” shall mean a physical or mental incapacity or disability which renders Executive unable to render
the services required hereunder (A) for one hundred eighty (180) days in any twelve (12) month period or (B) for a period of ninety (90) consecutive days. 
 (c) At the option of the Company for Cause (as defined in Section 6(e)); 
 (d) At the option of the Company at any time without Cause, subject to the Company’s obligations under Section 6(c) hereof; 

(e) At the option of Executive for Good Reason (as defined in Section 6(k)); 
 (f) At the option of Executive, at any time, for any reason, on ninety (90) days prior written notice to the Company; 
 (g) At the option of Executive upon Retirement (as defined in Section 6(m)) of Executive; or 
 (h) At the option of Executive upon Early Retirement (as defined in Section 6(n)); or 
 (i) At the option of Executive upon Extended Retirement (as defined in Section 6(o)) of Executive 
 (j) At the option of Executive for Company Failure to Renew (as defined in Section 6(p)). 
 6. Payments. 
 (a)
Death. If the Termination Event is due to Executive’s death, Executive’s legal representatives shall be entitled to receive, as soon as practicable following the date of termination: 
 (i) any accrued but unpaid Base Salary through the date of termination, plus 
 (ii) an amount equal to the greater of (x) Incentive Bonus paid or earned but unpaid to Executive in respect of the prior fiscal year or
(y) the average Incentive Bonus paid or earned but unpaid to Executive in respect of the three (3) previous fiscal years, pro-rated for the period from the beginning of the then current fiscal year and ending on the date of termination
(the “Pro Rated Bonus”), plus 

 (iii) any accrued and unpaid vacation pay or other benefits which may be owing in accordance with the
Company policies and applicable law, plus 
 (iv) acceleration of vesting and exercisability of (A) all of Executive’s shares of
restricted stock issued prior to or in connection with the initial public offering of the Company’s common stock (the “IPO”) and subject to a restricted stock agreement (the “Restricted Stock”), (B) all of
the options to purchase common stock issued by the Company to Executive prior to or in connection with the IPO (the “Options” and, together with the Restricted Stock, the “IPO Incentive Equity”) and (C) any
other equity incentive awards (“Equity Awards” and, together with the IPO Incentive Equity, the “Incentive Equity”) issued to Executive under the Company’s Equity Incentive Award Plan. For purposes of this
Agreement, “vesting” shall mean, in the case of Restricted Stock, ceasing to be subject to forfeiture, plus 
 (v) a period of one
(1) year following the date of termination to exercise any vested Options. 
 (b) Permanent Disability. If the Termination Event
is due to Executive’s Permanent Disability, Executive or his legal representatives shall be entitled to receive, as soon as practicable following the date of termination: 
 (i) any accrued but unpaid Base Salary payable through the date of termination, plus 
 (ii) the Pro Rated Bonus, plus 
 (iii) any
accrued and unpaid vacation pay or other benefits which may be owing in accordance with Company policies and applicable law, plus 
 (iv)
acceleration of vesting and exercisability of the Incentive Equity, plus 
 (v) a period of one (1) year following the date of
termination to exercise any vested Options. 
 (c) Termination Without Cause or for Good Reason. If the Termination Event is
termination by the Company at any time during the Employment Period without Cause or by the Executive at any time during the Employment Period for Good Reason, Executive shall be entitled to: 
 (i) any accrued but unpaid Base Salary through the date of termination, plus 
 (ii) the Pro Rated Bonus payable as soon as practicable following the date of termination, plus 

 (iii) any accrued and unpaid vacation pay, unreimbursed expenses or other benefits which may be
applicable to and owing in accordance with Company policies or applicable law, plus 
 (iv) the Base Salary (which shall be the Base Salary
as of the date of termination) during the Severance Period (as defined in Section 6(l)), payable in accordance with the payroll practices then in effect at the Company, plus 
 (v) an amount equal to the greater of (x) the Incentive Bonus paid or earned but unpaid to Executive in respect of the prior fiscal year or
(y) the average Incentive Bonus paid or earned but unpaid to Executive in respect of the three (3) previous fiscal years, payable as soon as practicable following the date of termination, plus 
 (vi) the continuation of all health benefits during the Severance Period at the same cost to Executive as though Executive continued his employment with
the Company, plus 
 (vii) the reimbursement by the Company for up to $10,000 for the cost of outplacement services during the one year
following the date of termination, plus 
 (viii) the acceleration of vesting and exercisability of the Incentive Equity that would have
vested during the Severance Period, plus 
 (ix) a period of ninety (90) days following the end of the Severance Period to exercise any
vested Options; 
 provided, however, that the Company’s obligations under Section 6(c)(vi) shall terminate prior to the end of the
Severance Period if, during the Severance Period, Executive obtains health benefits from a new employer that are substantially equivalent to those provided by the Company; provided, further, if Executive is a “specified
employee” as defined in Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and the payments described above do not satisfy any applicable exemptions, then such payments shall not be made prior
to the first day following the six-month period beginning on the date of termination of employment if such payments would otherwise violate Section 409A, Department of Treasury regulations and other interpretive guidance issued thereunder,
including without limitation any such regulations or other guidance that may be issued after the Effective Date (“Section 409A Guidance”) and such payments shall instead be accumulated and paid to Executive on the first day of the
seventh month following his termination of employment. All payments due Executive under this Section 6(c) after the six-month period following Executive’s termination of employment shall be paid in accordance with the terms of this
Section 6(c). 
 (d) Termination for Cause or Voluntary Termination by Executive. If the Termination Event is termination by the
Company for Cause pursuant to Section 5(c) or termination by Executive pursuant to Section 5(f), except for Base Salary through the 

 
day on which Executive’s employment was terminated and any accrued and unpaid vacation pay or other benefits which may be owing in accordance with the
Company’s policies or applicable law, Executive shall not be entitled to receive severance or any other compensation or benefits after the last date of employment with the Company. If termination is for Cause, all of (i) the Incentive
Equity that is unvested as of the date of termination and (ii) the Options that remain unexercised as of the date of termination, shall be forfeited for no consideration. If termination is by Executive pursuant to Section 5(f),
(i) all of the Incentive Equity that is unvested as of the date of termination shall be forfeited for no consideration and (ii) Executive shall have one (1) year following the date of termination to exercise any vested Options.

 (e) Cause Defined. For the purpose of this Agreement, the term “Cause” shall mean (i) the willful and
continued failure of Executive to perform substantially the Executive’s duties with the Company or one of its affiliates (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for
substantial performance is delivered to Executive by the Board of Directors, which specifically identifies the manner in which the Board of Directors believes that Executive has not substantially performed Executive’s duties, or
(ii) willful engaging by Executive in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company or its affiliates, or (iii) conviction of or made a plea of guilty or nolo contendere to, a
felony, or (iv) a material breach of his or her obligations under Section 7 or Section 8 hereof. For purposes of this definition of “Cause”, no act or failure to act on the part of Executive shall be considered
“willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that Executive’s actions or omission was in the best interests of the Company. Any act, or failure to act, based upon
express authority given pursuant to a resolution duly adopted by the Board of Directors with respect to such act or omission or upon the instructions of the Chief Executive Officer of the Company or based upon the advice of counsel for the Company
shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. Notwithstanding the foregoing, Executive cannot be terminated for “Cause” unless the Company has
notified Executive in writing that his or her employment or consultancy arrangement is being terminated for Cause which notice shall specify the Cause event and Executive is given an opportunity, at least 30 days after receipt of such written notice
from the Company, to make a presentation to the Board of Directors that Executive should not be terminated for Cause. 
 (f) Termination
Upon Retirement. If the Termination Event is due to the Retirement of Executive, Executive shall be entitled to receive, as soon as practicable following the date of termination: 
 (i) any accrued but unpaid Base Salary through the date of termination, plus 
 (ii) the Pro Rated Bonus, plus 

 (iii) any accrued and unpaid vacation pay or other benefits which may be owing in accordance with
Company policies and applicable law, plus 
 (iv) the right to participate in the Retiree Health Program, plus 
 (v) acceleration of vesting of the Restricted Stock and the continued vesting and exercisability of Options in the same manner that the Options would
vest and become exercisable had Executive continued his employment with the Company, plus 
 (vi) a period equal to the full length of the
remaining term (as set forth in the applicable grant notice) to exercise any vested Options; 
 provided, however, that the Company’s
obligations under Section 6(f)(iv) shall terminate if at any time Executive obtains retiree health benefits from a different employer and provided, further, if Executive is a “specified employee” as defined in
Section 409A, and the payments described above do not satisfy any applicable exemptions, then such payments shall not be made prior to the first day following the six-month period beginning on the date of termination of employment if such
payments would otherwise violate Section 409A Guidance and such payments shall instead be paid to Executive on the first day of the seventh month following his termination of employment. 
 (g) Termination Upon Early Retirement. If the Termination Event is by Executive due to Early Retirement, Executive shall be entitled to receive:

 (i) any accrued but unpaid Base Salary through the date of termination, plus 
 (ii) any accrued and unpaid vacation pay or other benefits which may be owing in accordance with Company policies and applicable law, plus 

(iii) the right to participate in the Retiree Health Program, plus 
 (iv) a period equal to the full length of the remaining term (as set forth in the applicable grant notice) to exercise any vested Options; provided, however, all of the Incentive Equity that is unvested as of the date
of termination, shall be forfeited for no consideration; 
 provided, however, that the Company’s obligations under Section 6(g)(iii)
shall terminate if at any time Executive obtains retiree health benefits from a different employer. 
 (h) Termination Upon Extended
Retirement. If the Termination Event is due to the Extended Retirement of Executive, Executive shall be entitled to receive, as soon as practicable following the date of termination: 
 (i) any accrued but unpaid Base Salary through the date of termination, plus 

 (ii) an amount equal to the Incentive Bonus paid or earned but unpaid to Executive in the prior fiscal
year, pro-rated for the period from the beginning of the then current fiscal year and ending on the date of termination, plus 
 (iii) any
accrued and unpaid vacation pay or other benefits which may be owing in accordance with Company policies and applicable law, plus 
 (iv)
the right to participate in the Retiree Health Program, plus 
 (v) accelerated vesting of any Incentive Equity in the form of restricted
stock and the continued vesting and exercisability of any Incentive Equity in the form of options in the same manner that such options would vest and become exercisable had Executive continued his employment with the Company, plus 
 (vi) a period equal to the full length of the remaining term (as set forth in the applicable grant notice) to exercise any vested Options; 

provided, however, that the Company’s obligations under Section 6(h)(iv) shall terminate if at any time Executive obtains retiree health
benefits from a different employer and provided, further, if Executive is a “specified employee” as defined in Section 409A, and the payments described above do not satisfy any applicable exemptions, then such payments
shall not be made prior to the first day following the six-month period beginning on the date of termination of employment if such payments would otherwise violate Section 409A Guidance and such payments shall instead be paid to Executive on
the first day of the seventh month following his termination of employment. 
 (i) Company Failure to Renew. If the Termination Event
is Company Failure to Renew, Executive shall be entitled to receive: 
 (i) any accrued but unpaid Base Salary through the date of
termination, plus 
 (ii) the Pro Rated Bonus, payable as soon as practicable following the date of termination, plus 
 (iii) any accrued and unpaid vacation pay or other benefits which may be owing in accordance with Company policies and applicable law, plus 

(iv) once Executive reaches the age of 55 and if, at the time of the expiration of the Agreement for failure of the Company to renew, Executive had
at least three (3) years of service with the Company following the IPO, the right to participate in the Retiree Health Program, plus 
 (v) acceleration of vesting of the Restricted Stock and continued vesting and exercisability of the Options in the same manner that the Options would vest and become exercisable had Executive continued his employment with the Company

 provided, however, that the Company’s obligations under Section 6(i)(v) shall terminate if at any
time Executive obtains retiree health benefits from a different employer and provided, further, if Executive is a “specified employee” as defined in Section 409A, and the payments described above do not satisfy any
applicable exemptions, then such payments shall not be made prior to the first day following the six-month period beginning on the date of termination of employment if such payments would otherwise violate Section 409A Guidance and such
payments shall instead be paid to Executive on the first day of the seventh month following his termination of employment. 
 (j) Change
of Control. 
 (i) Special Payment. If, at any time during the two (2) year period following a Change of Control (as defined
in Section 6(j)(ii)), the Executive’s employment is terminated without Cause or by the Executive for Good Reason, the Executive will receive (A) his Base Salary through the date of termination, plus (B) an amount equal to two
times Base Salary (which shall be the Base Salary as of the date of termination), payable in a lump sum as soon as practicable following the date of termination, plus (C) the Pro Rated Bonus, payable as soon as practicable following the date of
termination, plus (D) an amount equal to two times the greater of (x) Incentive Bonus paid or earned but unpaid to Executive in respect of the prior fiscal year or (y) the average Incentive Bonus paid or earned but unpaid to Executive
in respect of the three (3) previous years, payable as soon as practicable following the date of termination (E) any accrued and unpaid vacation pay, unreimbursed expenses or other benefits which may be applicable to and owing in
accordance with Company policies or applicable law, plus (F) the continuation of all health benefits during the Severance Period, plus (G) the reimbursement by the Company for up to $10,000 for the cost of outplacement services during the
one year following the date of termination, plus (H) acceleration of vesting and exercisability of all Incentive Equity; provided, however, if Executive is a “specified employee” as defined in Section 409A and the
payments described above do not satisfy any applicable exemptions, then such payments shall not be made prior to the first day following the six-month period beginning on the date of termination of employment if such payments would otherwise violate
409A Guidance and such payments shall instead be accumulated and paid to Executive on the first day of the seventh month following his termination of employment. All payments due Executive under this Section 6(j) after the six-month period
following Executive’s termination of employment shall be paid in accordance with the terms of this Section 6(j). 
 (ii) Change
of Control Defined. For purposes of this Section, the term “Change of Control” shall mean the occurrence of one or more of the following events: 
 (A) the consummation of a merger or consolidation of the Company with or into any other corporation or other entity in which holders of the Company’s voting securities immediately prior to such merger or
consolidation will not, directly or indirectly, continue to hold at least a majority of the outstanding voting securities of the Company; 

 (B) a sale, lease, exchange or other transfer (in one transaction or a related series of transactions)
of all or substantially all of the Company’s assets; 
 (C) the acquisition by any person or any group of persons, acting together in
any transaction or related series of transactions, of such quantity of the Company’s voting securities as causes such person, or group of persons, to own beneficially, directly or indirectly, as of the time immediately after such transaction or
series of transactions, 50% or more of the combined voting power of the voting securities of the Company other than as a result of (X) an acquisition of securities directly from the Company or (Y) an acquisition of securities by the
Company which by reducing the voting securities outstanding increases the proportionate voting power represented by the voting securities owned by any such person or group of persons to 50% or more of the combined voting power of such voting
securities; 
 (D) a change in the composition of the Board within a two (2) year period such that a majority of the members of the
Board are not Continuing Directors. As used herein, the term “Continuing Directors” shall mean as of any date of determination, any member of the Board of Directors of the Company who (i) was a member of Board of Directors of
the Company immediately after the date of the IPO, or (ii) was nominated for election or elected to the Company’s Board of Directors with the approval of, or whose election to the Board of Directors was ratified by, at least a majority of
the Continuing Members who were members of the Company’s Board of Directors at the time of that nomination or election; or 
 (E) the
liquidation or dissolution of the Company; 
 provided, however, that in no case shall (1) the public offering and sale of the Company’s Common
Stock by its stockholders pursuant to a registered secondary offering or (2) the voluntary or involuntary bankruptcy of the Company constitute a Change in Control. 
 (k) Good Reason Defined. For purposes of this Agreement, “Good Reason” shall mean in the absence of written consent of Executive (i) a reduction by the relevant Company Entity in the
Executive’s annual base salary from such Executive’s annual base salary then in effect, (ii) a forced relocation by the relevant Company Entity of the Executive’s place of employment to a location greater than twenty five
(25) miles from his or her initial place of employment or outside of Fairfield County, Connecticut, or (iii) a material diminution by the relevant Company Entity in the Executive’s principal duties and responsibilities. A change or
restructuring of the reporting structure of the Company or of the person to which Executive directly reports shall not constitute a material diminution of Executive’s duties and responsibilities for purposes of clause (iii). Notwithstanding the
foregoing, in the event that Executive provides written notice of termination for Good Reason in reliance upon this provision, the Company shall have the opportunity to cure such circumstances within thirty (30) days of receipt of such notice.

 (l) Severance Defined. For purposes of this Agreement, “Severance Period” shall mean, as applicable, (i) the
period beginning on the date of termination of 

 
Executive’s employment pursuant to Section 5(d) and ending on the date which is one (1) year thereafter or (ii) the period beginning on
the date of termination of Executive’s employment pursuant to Section 6(j)(i) and ending on the date which is two (2) years thereafter. 
 (m) Retirement Defined. For the purposes of this Agreement, the term “Retirement” shall mean when Executive is fifty-five (55) years of age or older and has been employed by the Company
for five (5) or more years after the date of the IPO and such Executive terminates employment for no other reason. 
 (n) Early
Retirement Defined. For the purposes of this Agreement, the term “Early Retirement” shall mean when Executive’s age plus his years of employment with the Company equal fifty-five (55); provided, however, Executive must be
employed by the Company for a minimum of three (3) years after the date of the IPO. 
 (o) Extended Retirement Defined. For the
purposes of this Agreement, the term “Extended Retirement” shall mean when Executive is fifty-five (55) years of age or older and has been employed by the Company for ten (10) or more years and such Executive terminates
employment for no other reason. 
 (p) Company Failure to Renew Defined. For purposes of this Agreement, the term “Company
Failure to Renew” shall mean the delivery by the Company of a notice of intent not to renew pursuant to Section 1 and the notification by Executive within ninety (90) days after receipt of a notice of intent not to renew that
Executive intends to terminate his employment. 
 (q) Condition to Payment. All payments and benefits due to Executive under this
Section 6 which are not otherwise required by law shall be contingent upon (i) execution by Executive (or Executive’s beneficiary or estate) of a general release of all claims to the maximum extent permitted by law against the
Company, their affiliates and their current and former stockholders, directors, employees and agents, in such form as determined by the Company in its sole discretion and (ii) compliance by Executive with his obligations under any stockholders,
restricted stock or other agreement to which the Company and Executive are a party. 
 (r) No Other Severance. Executive hereby
acknowledges and agrees that, other than the severance payments described in this Section 6, upon termination, Executive shall not be entitled to any other severance under any Company benefit plan or severance policy generally available to the
Company’s employees or otherwise. 
 (s) Survival; Conflicting Terms. Any provision in this Section 6 regarding Incentive
Equity or the right to participate in the Retiree Health Program shall survive any termination or expiration of this Agreement. Section 6(j) shall survive a Change of Control regardless of whether this Agreement is terminated in connection with
a Change of Control or expires by its terms following a Change of Control. In the event 

 
of a conflict between the terms of this Agreement and any Incentive Equity documentation, the terms of this Agreement regarding the Incentive Equity shall
prevail. 
 7. Confidentiality. 
 (a) The Executive agrees that Confidential Information was and shall be made available in connection with the Executive’s employment by or consultancy with the Company. The Executive acknowledges that the
Confidential Information that he or she develops or invents in connection with his or her employment by or services to a Company Entity or has obtained or will obtain in connection therewith is the property of such Company Entity. The Executive
agrees that he or she will not disclose any Confidential Information to any other Person, except that Confidential Information may be disclosed: (i) to the extent required by applicable law, rule or regulation (including complying with any oral
or written questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process to which the Executive is subject); provided that the Executive gives such Company Entity prompt notice of
such requests, to the extent practicable, so that such Company Entity may seek an appropriate protective order or similar relief (and the Executive shall cooperate with such efforts by such Company Entity at Company expense, and shall in any event
make only the minimum disclosure required by such law, rule or regulation unless the Executive reasonably believes that other disclosure is necessary or advisable in order to avoid adverse consequences to the Executive), (ii) if the prior
written consent of the Board of Directors shall have been obtained, or (iii) to such Persons to the extent necessary in the reasonable judgment of the Executive to perform his duties as an employee of or consultant to a Company Entity and, in
his reasonable judgment, such disclosure is not harmful to the Company. 
 (b) “Confidential Information” shall mean any
information relating to the business or affairs of a Company Entity or, as provided below, any of their respective affiliates, including, but not limited to, customer identities, potential customers, employees, business and financial strategies,
methods or practices, business plans, financial models, proposals, documents or materials owned, developed or possessed by a Company Entity, profit margins or other proprietary information used by such Company Entity or any of its affiliates;
provided that Confidential Information shall not include (i) information that is or becomes generally known to the public other than as a result of a disclosure by the Executive in violation of this Agreement, (ii) information that
was known to the Executive prior to becoming a consultant to or an employee of the Company or (iii) information which becomes known to the Executive following a Termination Event, through no wrongful act of the Executive, by disclosure from a
third party unless the Executive has reason to believe that such third party is under an obligation or duty of confidentiality or secrecy with respect to such information or is an employee, officer, director or stockholder of a Company Entity; and
provided, further, that (A) in such case where any affiliate has a separate confidentiality requirement or agreement to which any Company Entity is subject, such confidentiality requirement or agreement shall supersede the
requirements herein and (B) unless a confidentiality requirement or agreement referred to in the preceding clause (A) exists with respect to an 

 
affiliate, Confidential Information for purposes of this definition as it relates to affiliates shall be deemed to include only Confidential Information of
affiliates, the employees or consultants of which, are participants or observers at meetings of the Board of Directors of the Company. 
 8.
Restrictive Covenants. 
 (a) During the term of employment and for a period of one (1) year after the effective date of
the Termination Event, Executive shall not, directly or indirectly (i) cause, solicit, induce or encourage any employees, consultants or contractors of the Company to leave such employment or service, or hire, employ or otherwise engage any
such individual, or (ii) cause, induce or encourage any customer, supplier or licensor of the Company, or any other Person who has a material business relationship with the Company, to terminate or modify any such relationship. 
 (b) During the term of employment and for a period of one (1) year after the effective date of the Termination Event, Executive shall not, directly
or indirectly alone or as a partner, officer, director, shareholder, member, sole proprietor, employee or consultant of any other firm or entity, personally engage or participate in any Restricted Business, as such term is defined below, as a
material portion of his or her responsibilities. 
 (c) The parties hereto agree that, if any court of competent jurisdiction in a final
nonappealable judgment determines that a specified time period, a specified business limitation or any other relevant feature of this Section 8 is unreasonable, arbitrary or against public policy, then a lesser time period, business
limitation or other relevant feature which is determined to be reasonable, not arbitrary and not against public policy may be enforced against the applicable party. 
 (d) “Restricted Business” shall mean any of the following: (i) the business of extending senior, subordinated or asset-based loans to middle-market companies as targeted by the Company at the
effective date of the Termination Event, (ii) providing real estate financing of the types offered by the Company at the effective date of the Termination Event, (iii) extending asset-backed loans or investing in asset-backed securities
with financial products of the types then offered by the Company at the effective date of the Termination Event or (iv) any other material line of business engaged in by the Company at the effective date of the Termination Event. 
 (e) The Board of Directors shall, in its sole discretion, have the authority and discretion to waive any provision of this Section 8 or to
make a determination that a business is not a Restricted Business for purposes hereof. 
 9. Indemnification. If Executive is a
party to any action, suit or proceeding by reason of the fact that Executive is or was an officer or agent of the Company, the Company will indemnify Executive to the fullest extent permitted by the laws of the state 

 
of the Company’s incorporation, in effect at that time, or the certificate of incorporation and bylaws of the Company, whichever affords the greater
protection to Executive. 
 10. Withholding Taxes. Executive acknowledges and agrees that the Company may directly or
indirectly withhold from any payments under this Agreement all federal, state, city or other taxes that will be required pursuant to any law or governmental regulation. 
 11. Section 409A. To the extent applicable, this Agreement shall be interpreted in accordance with 409A Guidance. Notwithstanding any provision of the Agreement to the contrary, (i) if, at the
time of Executive’s termination of employment with the Company, Executive is a “specified employee” as defined in 409A Guidance and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result
of such termination of employment is necessary in order to prevent any accelerated or additional tax under 409A Guidance, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction
in such payments or benefits ultimately paid or provided to Executive) until the date that is six months following Executive’s termination of employment with the Company (or the earliest date as is permitted under Section 409A) and
(ii) if any other payments of money or other benefits due to Executive hereunder could cause the application of an accelerated or additional tax under Section 409A, the Company may (a) adopt such amendments to the Agreement, including
amendments with retroactive effect, that the Company determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by the Agreement and/or (b) take such other actions as the Company determines necessary or
appropriate to comply with the requirements of 409A Guidance. The Company shall consult with Executive in good faith regarding the implementation of this Section 11; provided that none of the Company, any of its affiliates, or any of their
employees or representatives shall have any liability to Executive with respect thereto. 
 12. Effect of Prior Agreements.
This Agreement constitutes the sole and entire agreement and understanding between Executive and the Company with respect to the matters covered hereby and thereby, and there are no other promises, agreements, representations, warranties or other
statements between Executive and the Company in respect to such matters not expressly set forth in this Agreement. This Agreement supersede all prior and contemporaneous agreements, understandings or other arrangements, whether written or oral,
concerning the subject matter thereof. 
 13. Notices. Any notice required, permitted, or desired to be given pursuant to any
of the provisions of this Agreement shall be deemed to have been sufficiently given or served for all purposes when telecopied, when delivered by hand or received by registered or certified mail, postage prepaid, or by nationally reorganized
overnight courier service addressed to the party to receive such notice at the following address or any other address substituted therefor by notice pursuant to these provisions: 

 If to the Company, at: 
 NewStar Financial, Inc. 
 500 Boylston Street 
 Suite 1600 
 Boston, MA 02116 
 Attention: Timothy J. Conway 
 Facsimile:
(617) 848 4300 
 If to Executive, at: 
 Robert T. Clemmens 
 13 Ridgecrest 
 Stamford, CT 06824 
 14.
Assignability. The obligations of Executive may not be delegated and Executive may not, without the Company’s written consent thereto, assign, transfer, convey, pledge, encumber, hypothecate or otherwise dispose of this Agreement
or any interest herein. Any such attempted delegation or disposition shall be null and void and without effect. The Company and Executive agree that this Agreement and all of the Company’ rights and obligations hereunder may be assigned or
transferred by the Company to and may be assumed by and become binding upon and may inure to the benefit of any affiliate of or successor to the Company. The term “successor” shall mean, with respect to the Company, any other corporation
or other business entity which, by merger, consolidation, purchase of the assets, or otherwise, acquires all or a material part of its assets. Any assignment by either of the Company of its rights or obligations hereunder to any affiliate of or
successor of the Company shall not be a termination of employment for purposes of this Agreement. 
 15. Modification. This
Agreement may not be modified or amended except in writing signed by the parties. No term or condition of this Agreement will be deemed to have been waived except in writing by the party charged with waiver. A waiver will operate only as to the
specific term or condition waived and will not constitute a waiver for the future or act on anything other than that which is specifically waived. 
 16. Governing Law. This Agreement has been executed and delivered in the Commonwealth of Massachusetts and its validity, interpretation, performance and enforcement will be governed by the laws of that state applicable to
contacts made and to be performed entirely within that state. 
 17. Severability. All provisions of this Agreement are
intended to be severable. In the event any provision or restriction contained herein is held to be invalid or unenforceable in any respect, in whole or in part, such finding will in no way affect the validity or enforceability of any other provision
of this Agreement. The parties hereto further agree that any such invalid or unenforceable provision will be deemed modified so that it will be enforced to the greatest extent permissible under law, and to the extent that any court of competent
jurisdiction determines any restriction herein to be unreasonable in any respect, such court may limit this Agreement to render it reasonable in the light of the circumstances in which it was entered into and specifically enforce this Agreement as
limited. 

 18. No Waiver. No course of dealing or any delay on the part of the Company or Executive in
exercising any rights hereunder shall operate as a waiver of any such rights. No waiver of any default or breach of this Agreement shall be deemed a continuing waiver of any other breach or default. 
 19. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original by the party
executing the same but all of which together will constitute one and the same instrument. 
 20. Binding Arbitration.

 (a) Generally. Executive and the Company hereby agree that any controversy or claim arising out of or relating to this Agreement,
the employment relationship between Executive and the Company, or the termination thereof, including the arbitrability of any controversy or claim, which cannot be settled by mutual agreement will be finally settled by binding arbitration in
accordance with the Federal Arbitration Act (or if not applicable, the applicable state arbitration law) as follows: Any party who is aggrieved will deliver a notice to the other party setting forth the specific points in dispute. Any points
remaining in dispute twenty (20) days after the giving of such notice may, upon ten (10) days’ notice to the other party, be submitted to arbitration in Boston, Massachusetts, to the American Arbitration Association, before a single
arbitrator appointed in accordance with the Commercial Dispute Resolution Procedures and Rules of the American Arbitration Association, as such procedures and rules may be amended from time to time and modified only as herein expressly provided. The
arbitrator may enter a default decision against any party who fails to participate in the arbitration proceedings. 
 (b) Binding
Effect. The decision of the arbitrator on the points in dispute will be final, unappealable and binding, and judgment on the award may be entered in any court having jurisdiction thereof. The parties agree that this provision has been adopted by
the parties to rapidly and inexpensively resolve any disputes between them and that this provision will be grounds for dismissal of any court action commenced by either party with respect to this Agreement, other than post-arbitration actions
seeking to enforce an arbitration award. In the event that any court determines that this arbitration procedure is not binding, or otherwise allows any litigation regarding a dispute, claim, or controversy covered by this Agreement to proceed, the
parties hereto hereby waive any and all right to a trial by jury in or with respect to such litigation. 
 (c) Fees and Expenses.
Executive or his beneficiaries shall pay all attorney’s fees and expenses incurred by Executive or his beneficiaries in resolving any claim or dispute arising out of or relating to this Agreement. If it is finally determined that Executive or
his beneficiaries prevailed with respect to such claim or dispute, the Company shall reimburse all attorney’s fees and expenses incurred by Executive. 

 (d) Confidentiality. The parties will keep confidential, and will not disclose to any person,
except as may be required by law, the existence of any controversy under this Section 20, the referral of any such controversy to arbitration or the status or resolution thereof. In addition, the confidentiality restrictions set forth in the
Non-Competition Agreement shall continue in full force and effect. 
 (e) Waiver. Executive acknowledges that this agreement to submit
to arbitration includes all controversies or claims of any kind (e.g., whether in contract or in tort, statutory or common law, legal or equitable) now existing or hereafter arising under any federal, state, local or foreign law (except for any
claims or controversy arising out of the Non-Competition Agreement), including, but not limited to, the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866, the Employee Retirement Income
Security Act, the Family and Medical Leave Act, the Americans With Disabilities Act and all similar federal, state and local laws, and Executive hereby waives all rights thereunder to have a judicial tribunal and/or a jury determine such claims.

 21. Acknowledgment. Executive acknowledges that before entering into this Agreement, Executive has had the opportunity to
consult with any attorney or other advisor of Executive’s choice, and that this provision constitutes advice from the Company to do so if Executive chooses. Executive further acknowledges that Executive has entered into this Agreement of
Executive’s own free will, and that no promises or representations have been made to Executive by any person to induce Executive to enter into this Agreement other than the express terms set forth herein. Executive further acknowledges that
Executive has read this Agreement and understands all of its terms, including the waiver of rights set forth in Section 20(e). 
 Remainder of page intentionally blank 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day written above.

 NEWSTAR FINANCIAL, INC. 
 By:  /s/  TIMOTHY J. CONWAY  
         Name: Timothy J. Conway 
         Title: President 
 ROBERT T. CLEMMENS 
 /s/ ROBERT T. CLEMMENSAmended & Restated 2006 Incentive Plan

 Exhibit 10(f) 
 2006 INCENTIVE PLAN 
 OF 
 NEWSTAR FINANCIAL, INC. 
 AMENDED AND RESTATED AS OF JANUARY 28, 2009 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
			
	ARTICLE I	 	 DEFINITIONS
	  	1
			
	 1.1
	 	General	  	1
	 1.2
	 	Affiliate	  	1
	 1.3
	 	Annual Incentive Award	  	1
	 1.4
	 	Award	  	1
	 1.5
	 	Award Agreement	  	1
	 1.6
	 	Benefit Arrangement	  	2
	 1.7
	 	Board	  	2
	 1.8
	 	Cause	  	2
	 1.9
	 	Code	  	2
	 1.10
	 	Committee	  	2
	 1.11
	 	Common Stock	  	2
	 1.12
	 	Company	  	2
	 1.13
	 	Company Entity	  	3
	 1.14
	 	Continuing Directors	  	3
	 1.15
	 	Covered Employee	  	3
	 1.16
	 	Deferred Stock	  	3
	 1.17
	 	Director	  	3
	 1.18
	 	Disability	  	3
	 1.19
	 	Dividend Equivalent Right	  	3
	 1.20
	 	Eligible Grantee	  	3
	 1.21
	 	Employee	  	3
	 1.22
	 	Exchange Act	  	3
	 1.23
	 	Fair Market Value	  	3
	 1.24
	 	Grantee	  	3
	 1.25
	 	Incentive Stock Option	  	4
	 1.26
	 	Independent Director	  	4
	 1.27
	 	Non-Qualified Stock Option	  	4
	 1.28
	 	Option	  	4
	 1.29
	 	Optionee	  	4

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	 	 	  	Page
			
	 1.30
	 	Performance Award	  	4
	 1.31
	 	Performance Goals	  	4
	 1.32
	 	Performance Measures	  	4
	 1.33
	 	Plan	  	5
	 1.34
	 	Reporting Person	  	5
	 1.35
	 	Restricted Stock	  	5
	 1.36
	 	Restricted Stock Unit	  	5
	 1.37
	 	Retirement	  	5
	 1.38
	 	Rule 16b-3	  	5
	 1.39
	 	Section 162(m)	  	5
	 1.40
	 	Stock Payment	  	5
	 1.41
	 	Subsidiary	  	6
	 1.42
	 	Termination of Directorship	  	6
	 1.43
	 	Termination of Employment	  	6
			
	ARTICLE II	 	 SHARES SUBJECT TO PLAN
	  	7
			
	 2.1
	 	Shares Subject to Plan	  	7
	 2.2
	 	Share Usage	  	7
	 2.3
	 	Limits on Individual Grants	  	8
			
	ARTICLE III	 	 GRANTING OF OPTIONS
	  	8
			
	 3.1
	 	Eligibility	  	8
	 3.2
	 	Granting of Options	  	8
	 3.3
	 	Special Rules Applicable to Incentive Stock Options	  	9
	 3.4
	 	Substitute Options	  	9
			
	ARTICLE IV	 	 TERMS OF OPTIONS
	  	9
			
	 4.1
	 	Option Agreement	  	9
	 4.2
	 	Option Price	  	10
	 4.3
	 	Option Term	  	10
	 4.4
	 	Option Vesting and Exercisability	  	10
	 4.5
	 	Expiration of Options	  	10

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	 	 	  	Page
			
	ARTICLE V	 	 EXERCISE OF OPTIONS
	  	11
			
	 5.1
	 	Partial Exercise	  	11
	 5.2
	 	Manner of Exercise	  	11
	 5.3
	 	Conditions to Issuance of Stock Certificate	  	12
	 5.4
	 	Rights as Stockholders	  	12
	 5.5
	 	Ownership and Transfer Restrictions	  	12
			
	ARTICLE VI	 	 AWARD OF RESTRICTED STOCK AND STOCK UNITS
	  	13
			
	 6.1
	 	Award of Restricted Stock	  	13
	 6.2
	 	Restricted Stock Agreement	  	13
	 6.3
	 	Rights as Stockholders	  	13
	 6.4
	 	Restriction	  	14
	 6.5
	 	Escrow	  	14
	 6.6
	 	Legend	  	14
			
	ARTICLE VII	 	 STOCK APPRECIATION RIGHTS
	  	14
			
	 7.1
	 	Grant of SARs	  	14
	 7.2
	 	Exercise Price	  	14
	 7.3
	 	Treatment of Dividend Rights	  	15
	 7.4
	 	Other Terms	  	15
			
	ARTICLE VIII	 	 PERFORMANCE AND ANNUAL INCENTIVE AWARDS
	  	15
			
	 8.1
	 	Performance Conditions	  	15
	 8.2
	 	Performance or Annual Incentive Awards Granted to Designated Covered Employees	  	15
	 8.3
	 	Written Determinations	  	16
	 8.4
	 	Status of Awards Under Section 162(m)	  	16
			
	ARTICLE IX	 	 PARACHUTE LIMITATIONS
	  	17
			
	ARTICLE X	 	 UNRESTRICTED AND DEFERRED STOCK, DIVIDEND EQUIVALENT RIGHTS, OR OTHER AWARDS
	  	18
			
	 10.1
	 	Dividend Equivalents	  	18
	 10.2
	 	Unrestricted Stock	  	18
	 10.3
	 	Deferred Stock	  	18
	 10.4
	 	Other Stock Based Awards	  	19

  

 iii 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	 	 	  	Page
			
	 10.5
	 	Form of Agreement	  	19
			
	ARTICLE XI	 	 ADMINISTRATION
	  	19
			
	 11.1
	 	Compensation Committee	  	19
	 11.2
	 	Duties and Powers of Committee	  	19
	 11.3
	 	Majority Rule	  	20
	 11.4
	 	Expense Reimbursement; Professional Assistance; Good Faith Actions	  	20
			
	ARTICLE XII	 	 MISCELLANEOUS PROVISIONS
	  	20
			
	 12.1
	 	Not Transferable	  	20
	 12.2
	 	Amendment, Suspension or Termination of this Plan	  	21
	 12.3
	 	Approval of Plan by Stockholders	  	21
	 12.4
	 	Limitations Applicable to Section 16 Persons and Performance-Based Compensation	  	22
	 12.5
	 	Effect of Plan Upon Options and Compensation Plans	  	22
	 12.6
	 	Compliance with Laws	  	22
	 12.7
	 	Titles	  	23
	 12.8
	 	Governing Law	  	23
	 12.9
	 	Change in Control	  	23
	 12.10
	 	Withholding. Requirements and Arrangements	  	24
	 12.11
	 	Adjustments	  	25
	 12.12
	 	Other Transfer Restrictions	  	27
	 12.13
	 	Certain Indebtedness to the Company	  	27
	 12.14
	 	Foreign Nationals	  	27
	 12.15
	 	No Right to Employment	  	28
	 12.16
	 	Authorization of Sub Plans	  	28
	 12.17
	 	Severability	  	28
	 12.18
	 	Inability to Obtain Authority	  	28
	 12.19
	 	Uncertificated Shares	  	28
	 12.20
	 	Unfunded Plan	  	28
	 12.21
	 	No Constraint on Corporate Action	  	29
	 12.22
	 	Special Provisions Relating to Section 409A of the Code	  	29

  

 iv 

 2006 INCENTIVE PLAN 
 OF 
 NEWSTAR FINANCIAL, INC. 
 The name of this plan is the NewStar Financial, Inc. 2006 Incentive Plan (the “Plan”). The Plan was adopted by the Board of Directors
(“Board”) of NewStar Financial, Inc. (“Company”) on November 16, 2006 and is hereby amended and restated effective as of January 28, 2009. The purpose of the Plan is to enable the Company to attract and
retain highly qualified personnel who will contribute to the Company’s success by their ability, ingenuity and industry experience and to provide incentives to the participating officers, directors, employees, consultants and advisors that are
linked directly to shareholder interests and will therefore inure to the benefit of all shareholders of the Company. To this end, the Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units,
stock payments, dividend equivalents, deferred stock, performance awards and cash awards. Any of these awards may, but need not, be made as performance incentives to reward attainment of annual or long-term performance goals in accordance with the
terms hereof. 
 ARTICLE I 
 DEFINITIONS 
 1.1 General. Wherever the following terms are used in this Plan they shall have the meaning specified below,
unless the context clearly indicates otherwise. 
 1.2 Affiliate. “Affiliate” shall mean any corporation or other entity
(including, but not limited to, a partnership or a limited liability company) that is affiliated with the Company through stock or equity ownership or otherwise, and is designated as an Affiliate for purposes of this Plan by the Committee.

 1.3 Annual Incentive Award. “Annual Incentive Award” shall mean an Award made subject to attainment of performance goals
(as described in Article VIII) over a performance period of up to and including one year (the fiscal year, unless otherwise specified by the Committee). 
 1.4 Award. “Award” shall mean the grant of an Option, Restricted Stock, Restricted Stock Unit, Performance Award, Dividend Equivalent Right, Deferred Stock, Stock Payments, Stock Appreciation Rights,
or other awards pursuant to Article X of this Plan. Awards may be granted for services to be rendered or for services already rendered to the Company or any Affiliate. 
 1.5 Award Agreement. “Award Agreement” means either: (i) a written agreement entered into by the Company and a Grantee setting forth the terms and provisions applicable to an Award granted under
this Plan, or (ii) a written statement issued by the Company to a Grantee describing the terms and provisions of such Award, including any amendment or modification thereof. The Committee may provide for the use of electronic, Internet, or
other nonpaper Award Agreements, and the use of electronic, Internet, or other nonpaper means for the acceptance thereof and actions thereunder by a Grantee. 

 1.6 Benefit Arrangement. “Benefit Arrangement” shall have the meaning set forth in
Article IX hereof. 
 1.7 Board. “Board” shall mean the Board of Directors of the Company. 
 1.8 Cause. “Cause” shall mean “Cause” as defined in the Optionee’s employment agreement with the Company or, if the
Optionee does not have an employment agreement with the Company, (i) the willful and continued failure of the Optionee to perform substantially the Optionee’s duties with the Company or one of its Affiliates (other than any such failure
resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Optionee by the Board, which specifically identifies the manner in which the Board believes that the Optionee has
not substantially performed the Optionee’s duties, or (ii) willful engaging by the Optionee in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company or its affiliates, or (iii) conviction of
the Optionee or entry of a plea of guilty or nolo contendere by the Optionee to, a felony, or (iv) a material breach of his or her obligations under a restrictive covenant included in any agreement between the Optionee and the Company.
For purposes of this definition of “Cause”, no act or failure to act on the part of the Optionee shall be considered “willful” unless it is done, or omitted to be done, by the Optionee in bad faith or without reasonable belief
that the Optionee’s actions or omission was in the best interests of the Company. Any act, or failure to act, based upon express authority given pursuant to a resolution duly adopted by the Board with respect to such act or omission or upon the
instructions of the Chief Executive Officer of the Company or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Optionee in good faith and in the best interests of the Company.

 1.9 Code. “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto.

 1.10 Committee. “Committee” shall mean the Compensation Committee of the Board, or a subcommittee of the Board, appointed
as provided in Section 11.1. The Committee shall be responsible for administering and interpreting the Plan in accordance with Article XI. Unless otherwise determined by the Board, if the Committee is authorized to grant Awards to a
Reporting Person or a Covered Employee, each member shall be a “non-employee director” or the equivalent within the meaning of applicable Rule 16b-3 under the Exchange Act or an “outside director” within the meaning of
Section 162(m), respectively. 
 1.11 Common Stock. “Common Stock” shall mean the common stock, $0.01 par value, of the
Company. 
 1.12 Company. “Company” shall mean NewStar Financial, Inc. a Delaware corporation. 
  

 2 

 1.13 Company Entity. “Company Entity” shall mean the Company or one of its Subsidiaries.

 1.14 Continuing Directors. “Continuing Directors” shall mean as of any date of determination, any member of the Board who
(i) was a member of Board immediately after the date of the Company’s initial public offering, or (ii) was nominated for election or elected to the Board with the approval of, or whose election to the Board was ratified by, at least a
majority of the Continuing Members who were members of the Board at the time of that nomination or election. 
 1.15 Covered Employee.
“Covered Employee” shall mean a “covered employee” within the meaning of Section 162(m). 
 1.16 Deferred
Stock. “Deferred Stock” shall mean Common Stock awarded under Article X of this Plan. 
 1.17 Director.
“Director” shall mean a member of the Board. 
 1.18 Disability. “Disability” shall be defined pursuant to
Section 22(e)(3) of the Code. 
 1.19 Dividend Equivalent Right. “Dividend Equivalent Right” shall mean a right to
receive the equivalent value (in cash or Common Stock) of dividends paid on Common Stock, awarded under Article X of this Plan. 
 1.20
Eligible Grantee. “Eligible Grantee” shall mean any officer, Employee, consultant, advisor or Independent Director of the Company. 
 1.21 Employee. “Employee” shall mean any officer or other employee (as defined in accordance with Section 3401 (c) of the Code) of the Company, or of any corporation which is a Subsidiary. 
 1.22 Exchange Act. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 1.23 Fair Market Value. “Fair Market Value” of a share of Common Stock as of a given date shall be (i) the value of a share of
Common Stock at the closing of trading on such date on the principal exchange on which shares of Common Stock are then trading, if any, or if shares were not traded on such date, then on the closest preceding date on which a trade occurred, or
(ii) if the Common Stock is not publicly traded, the value of a share of Common Stock as established by the Committee acting in good faith; provided, that any determination of Fair Market Value shall be made in compliance with Section 409A
of the Code and any other applicable, statutory and regulatory guidelines. 
 1.24 Grantee. “Grantee” shall mean an officer,
Employee, Independent Director, advisor or consultant granted an Award pursuant to the terms of this Plan. 
  

 3 

 1.25 Incentive Stock Option. “Incentive Stock Option” shall mean an option which
conforms to the applicable provisions of Section 422 of the Code and which is designated as an Incentive Stock Option by the Committee. 
 1.26 Independent Director. “Independent Director” shall mean a member of the Board who is not an Employee of the Company. 
 1.27 Non-Qualified Stock Option. “Non-Qualified Stock Option” shall mean an Option which is not an Incentive Stock Option, including any Option determined by the Committee not to constitute an Incentive Stock Option.

 1.28 Option. “Option” shall mean a stock option granted under Article III of this Plan. An Option granted under this Plan
shall, as determined by the Committee, be either a Non-Qualified Stock Option or an Incentive Stock Option; provided, however, that Options granted to Independent Directors, consultants and advisors shall be Non-Qualified Stock Options.

 1.29 Optionee. “Optionee” shall mean an Employee, consultant, advisor or Independent Director granted an Option under
this Plan. 
 1.30 Performance Award. “Performance Award” shall mean a cash bonus, stock bonus or other performance or
incentive award that is paid in cash, Common Stock or a combination of both, awarded under Article VIII of this Plan. The Committee in its discretion may grant Performance Awards that are intended to qualify for the performance-based compensation
exception under Section 162(m) and Performance Awards that are not intended to so qualify. 
 1.31 Performance Goals.
“Performance Goals” shall mean with respect to any designated performance period as defined in Article VIII one or more Performance Measures established by the Committee prior to the beginning of such performance period or within such
period after the beginning of the performance period as shall meet the requirements to be considered “pre-established objective performance goals” for purposes of the regulations issued under Section 162(m). Such Performance Goals may
be particular to a Grantee or may be based, in whole or in part, on the performance of the division, department, line of business, Subsidiary, or other business unit, whether or not legally constituted, in which the Grantee works or on the
performance of the Company generally. 
 1.32 Performance Measures. “Performance Measures” shall include, but not be limited
to (measured either absolutely or by reference to an index or indices and determined either on a consolidated basis or, as the context permits, on a divisional, Subsidiary, line of business, project or geographical basis or in combinations thereof):
sales; revenues; assets; expenses; earnings before or after deduction for all or any portion of interest, taxes, depreciation, or amortization, whether or not on a continuing operations or an aggregate or per share basis; return on equity,
investment, capital or assets; one or more operating ratios; borrowing levels, leverage ratios or credit rating; market share; capital expenditures; cash flow; stock price; stockholder return; sales of particular 

  

 4 

 
products or services; customer acquisition or retention; acquisitions and divestitures (in whole or in part); joint ventures and strategic alliances;
spin-offs, split-ups and the like; reorganizations; or recapitalizations, restructurings, financings (issuance of debt or equity) or refinancings. A Performance Measure and any targets with respect thereto determined by the Committee shall be based
on achievement of an objectively determinable performance goal. To the extent consistent with the requirements for satisfying the performance-based compensation exception under Section 162(m), the Committee may provide in the case of an Award
intended to qualify for such exception that one or more of the Performance Measures applicable to such Award will be adjusted in an objectively determinable manner to reflect events (for example, but without limitation, acquisitions or dispositions)
occurring during the performance period that affect the applicable Performance Measure(s). Prior to the grant, exercisability, vesting, payment or full enjoyment of the Performance Award, as the case may be, the Committee will determine whether the
Performance Measures have been attained and such determination will be conclusive. If the Performance Measures are not attained, no other Award will be provided in substitution of the Performance Award with respect to which such Performance Measures
have not been met. 
 1.33 Plan. “Plan” shall mean this 2006 Incentive Plan, as amended and restated. 
 1.34 Reporting Person. “Reporting Person” shall mean: (i) any director or officer of the Company in the event that the Company is
an issuer with a class of equity securities registered pursuant to Section 12 of the Exchange Act; and (ii) any beneficial owner of greater than 10% of a class of the Company’s equity securities registered under Section 12 of the
Exchange Act, as determined by voting or investment control over the securities pursuant to Exchange Act Rule 16a-1(a)(l). 
 1.35
Restricted Stock. “Restricted Stock” shall mean Common Stock awarded under and subject to restrictions as provided in Article VI of this Plan. 
 1.36 Restricted Stock Unit. “Restricted Stock Unit” shall mean a notional account representing a share of Restricted Stock. 
 1.37 Retirement. “Retirement” shall mean when Grantee is fifty-five (55) or older and has been employed by the Company for five
(5) or more years after the date of the Company’s initial public offering and such Grantee terminates employment for no other reason. 
 1.38 Rule 16b-3. “Rule 16b-3” shall mean that certain Rule 16b-3 under the Exchange Act, as such Rule may be amended from time to time. 
 1.39 Section 162(m). “Section 162(m)” means Section 162(m) of the Code, including the Treasury regulations thereunder and other applicable Internal Revenue Service guidance. 
 1.40 Stock Payment. “Stock Payment” shall mean (1) a payment in the form of shares of Common Stock, or (2) a right to purchase
shares of Common Stock, as part of a 

  

 5 

 
deferred compensation arrangement, made in lieu of all or any portion of the compensation, including without limitation, salary, bonuses and commissions,
that would otherwise become payable to an Employee, consultant, Independent Director or advisor in cash, awarded under Article X of this Plan. 
 1.41 Subsidiary. “Subsidiary” shall mean any corporation in an unbroken chain of corporations beginning with the Company if each of the corporations other than the last corporation in the unbroken chain then owns stock
possessing 50 percent or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
 1.42 Termination of Directorship. “Termination of Directorship” shall mean the time when a Grantee who is an Independent Director ceases to be a Director for any reason, including, but not by way of limitation, a
termination by resignation, failure to be elected, death or retirement. The Board, in its sole and absolute discretion, shall determine the effect of all matters and questions relating to Termination of Directorship. 
 1.43 Termination of Employment. “Termination of Employment” shall mean the time when the employee-employer relationship between the
Grantee and the Company or any Subsidiary is terminated for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, disability or retirement; but excluding (i) terminations where there is a
simultaneous reemployment, continuing employment or retention as a consultant or advisor of a Grantee by the Company or any Subsidiary, (ii) at the discretion of the Committee, terminations which result in a temporary severance of the
employee-employer relationship, and (iii) at the discretion of the Committee, terminations which are followed by the simultaneous establishment of a consulting relationship by the Company or a Subsidiary with the former Employee. The Committee,
in its absolute discretion, shall determine the effect of all matters and questions relating to Termination of Employment, including, but not by way of limitation, the question of whether a Termination of Employment resulted from a discharge for
good cause, and all questions of whether particular leaves of absence constitute Terminations of Employment; provided, however, that, with respect to Incentive Stock Options, a leave of absence, change in status from an Employee to an
independent contractor or other change in the employee-employer relationship shall constitute a Termination of Employment if, and to the extent that, such leave of absence, change in status or other change interrupts employment for the purpose of
Section 422(a)(2) of the Code and the then applicable regulations and revenue rulings under said section. Notwithstanding any other provision of this Plan, the Company or any Subsidiary has an absolute and unrestricted right to terminate an
Employee’s employment at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in writing. 
 The date of the termination of a Grantee’s service for any reason shall be determined by the Committee in its sole discretion. For purposes of the Plan, however, the following events shall not be deemed a
termination of service of a Grantee: (i) a transfer of service from the Company to a Subsidiary, from a Subsidiary to the Company, or from one Subsidiary to another Subsidiary; or (ii) a leave of absence for military 

  

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service or sickness, or for any other purpose approved by the Company, if the Grantee’s right to employment is guaranteed either by a statute or by
contract or under the policy pursuant to which the leave of absence was granted or if the Board otherwise so provides in writing; provided, however, that if the Grantee fails to resume his or her active service to the Company upon the
completion of such leave of absence, then the Committee may, to the extent permitted by applicable law, deem such Grantee’s service to have terminated as of the commencement of such leave of absence. For purposes of the Plan, employees of a
Subsidiary shall be deemed to have terminated their service on the date on which such Subsidiary ceases to be a Subsidiary. 
 The Committee
shall have full authority to determine and specify in the applicable Award Agreement the effect, if any, that a Grantee’s termination of service for any reason will have on the vesting, exercisability, payment or lapse of restrictions
applicable to an outstanding award. 
 ARTICLE II 
 SHARES SUBJECT TO PLAN 
 2.1 Shares Subject to Plan. The shares of stock subject to Awards under this
Plan shall be the Company’s Common Stock. The aggregate number of such shares of Common Stock, which may be issued upon exercise of Options or Stock Appreciation Rights or upon any other Awards under the Plan, shall not exceed 6,900,000
(“Share Authorization”), subject to adjustment as provided in Section 12.11. The maximum number of shares of Common Stock of the Share Authorization that may be issued pursuant to ISOs under this Plan shall be 6,000,000. The
shares of Common Stock issuable upon exercise of Options or Stock Appreciation Rights or upon grant of any other Award may be either previously authorized but unissued shares or treasury shares. 
 2.2 Share Usage. Shares of Common Stock covered by an Award shall be counted as used as of the date of grant. Any shares of Common Stock related
to Awards under this Plan which terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, are settled in cash in lieu of shares of Common Stock, or are exchanged with the Committee’s permission, prior
to the issuance of Shares, for Awards not involving shares of Common Stock, shall be available again for grant under this Plan. Moreover, if the Option Price of any Option granted under this Plan or the tax withholding requirements with respect to
any Award granted under this Plan is satisfied by tendering shares of Common Stock to the Company (by either actual delivery or by attestation), such tendered shares of Common Stock shall again be available for grant under this Plan. Furthermore, if
a Stock Appreciation Right is exercised and settled in shares of Common Stock, the difference between the total shares of Common Stock exercised and the net shares of Common Stock delivered shall again be available for grant under this Plan, with
the result being that only the number of shares of Common Stock issued upon exercise of a Stock Appreciation Right are counted against the Shares available. 
  

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 2.3 Limits on Individual Grants. The following limits on individual Awards shall apply:

 (a) The maximum number of shares of Common Stock subject to Options granted to any Grantee, and that may be granted as Stock Appreciation
Rights, Restricted Stock, Restricted Stock Units, Deferred Stock, or other stock based Award made pursuant to Section 10.4 to any Grantee shall not exceed an aggregate of 6,900,000 in any 12 month period. 
 (b) No more than $4,000,000 may be paid to any individual in any 12 month period pursuant to an Award other than as listed in Section 2.3(a).

 ARTICLE III 
 GRANTING OF
OPTIONS 
 3.1 Eligibility. Any officer, Employee, consultant, advisor or Independent Director shall be eligible to be granted an
Option; provided, however, that only officers and Employees may be granted Incentive Stock Options. 
 3.2 Granting of Options.
The Committee shall from time to time, in its absolute discretion: 
 (a) Select which Eligible Grantees shall be granted Options; 

(b) Determine the number of shares subject to such Options; 
 (c) Determine whether such Options are to be Incentive Stock Options or Non-Qualified Stock Options and whether such Options are to qualify as performance-based compensation as described in Section 162(m)(4)(C)
of the Code; and 
 (d) Determine the terms and conditions of such Options, consistent with this Plan; provided, however, that
the terms and conditions of Options intended to qualify as performance-based compensation as described in Section 162(m)(4)(C) of the Code shall include, but not be limited to, such terms and conditions as may be necessary to meet the
applicable provisions of Section 162(m). 
 (e) The Committee shall instruct the Secretary of the Company to issue such Options and may
impose such conditions on the grant of such Options as it deems appropriate. Without limiting the generality of the preceding sentence, the Committee may, in its discretion and on such terms as it deems appropriate, require as a condition on the
grant of an Option that the Optionee surrender for cancellation some or all of the unexercised Options, awards of Restricted Stock or Deferred Stock, Performance Awards, Dividend Equivalent Rights, Stock Payments or other awards or rights which have
been previously granted to him or her under this Plan or otherwise. Such grant or other Award may contain such terms and conditions as the Committee deems appropriate and shall be exercisable in accordance with its terms, subject to statutory and
regulatory compliance. 
  

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 3.3 Special Rules Applicable to Incentive Stock Options. 
 (a) No person may be granted an Incentive Stock Option under this Plan if such person, at the time the Incentive Stock Option is granted, owns stock
possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any then existing Subsidiary unless the exercise price per share is not less than one hundred ten percent (110%) of the
Fair Market Value per share of Common Stock on the grant date of the Incentive Stock Option and the term does not exceed five (5) years measured from such grant date. 
 (b) No Incentive Stock Option shall be granted unless such Option, when granted, qualifies as an “incentive stock option” under
Section 422 of the Code. No Incentive Stock Option shall be granted to any person who is not an Employee. 
 (c) Any Incentive Stock
Option granted under this Plan may be modified by the Committee to disqualify such option from treatment as an “incentive stock option” under Section 422 of the Code. 
 (d) To the extent that the aggregate Fair Market Value of a Share of Common Stock with respect to which “incentive stock options” (within the
meaning of Section 422 of the Code, but without regard to Section 422(d) of the Code) are exercisable for the first time by an Optionee during any calendar year (under the Plan and all other incentive stock option plans of the Company and
any Subsidiary) exceeds $100,000, such Options shall be treated as Non-Qualified Options to the extent required by Section 422 of the Code and subject to the provisions of Section 3.4 of this Plan and the Company shall issue separate
certificates to the Grantee with respect to Options that are Non-Qualified Options and Options that are Incentive Stock Options. The rule set forth in the preceding sentence shall be applied by taking Options into account in the order in which they
were granted. For purposes of this Section 3.3(d), the Fair Market Value of stock shall be determined as of the time the Option with respect to such Common Stock is granted. 
 3.4 Substitute Options. In the event that the Company or any Subsidiary consummates a transaction described in Section 424(a) of the Code
(relating to the acquisition of property or stock from an unrelated corporation), individuals who become employees of the Company or any Subsidiary on account of such transaction may be granted Incentive Stock Options in substitution for options
granted by their former employer, subject to the requirements of Section 409A of the Code. The Committee, in its sole discretion and consistent with Sections 409A and 424(a) of the Code, shall determine the exercise price of such substitute
Options. 
 ARTICLE IV 
 TERMS OF
OPTIONS 
 4.1 Option Agreement. Each Option shall be evidenced by an Award Agreement, which shall be executed by the Optionee and an
authorized officer of the 

  

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Company and which shall contain such terms and conditions as the Committee shall determine, consistent with this Plan. Award Agreements evidencing Options
intended to qualify as performance-based compensation as described in Section l62(m)(4)(C) of the Code shall contain such terms and conditions as may be necessary to meet the applicable provisions of Section 162(m). Award Agreements evidencing
Incentive Stock Options shall contain such terms and conditions as may be necessary to meet the applicable provisions of Section 422 of the Code. Any Award Agreement may require that the Grantee agree to be bound by any stockholders’
agreement among all or certain stockholders of the Company that may be in effect at the time of either the grant of an Award or the exercise of an Option, if applicable, or certain provisions of any such agreement that may be specified by the
Committee. 
 4.2 Option Price. The Option price for each grant of an Option shall be set by the Committee and shall be specified in
the applicable Award Agreement; provided, however, that (i) in the case of Non-Qualified Stock Options, such price shall be no less than 100% of the Fair Market Value of a share of Common Stock on the date such Non-Qualified Stock
Option is granted, and (ii) in the case of Options intended to qualify as Incentive Stock Options or as performance-based compensation as described in Section 162(m)(4)(C) of the Code such price shall be no less than 100% of the Fair
Market Value of a share of Common Stock on the date such Incentive Stock Option is granted (110% of the Fair Market Value of a share of Common Stock on the date such Incentive Stock Option is granted in the case of an individual then owning (within
the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company or any Subsidiary). 
 4.3 Option Term. The term of an Option shall be set by the Committee in its discretion; provided, however, that, in the case of Incentive Stock Options, the term shall not be more than ten
(10) years from the date the Incentive Stock Option is granted, or five (5) years from such date if the Incentive Stock Option is granted to an individual then owning (within the meaning of Section 424(d) of the Code) more than 10% of
the total combined voting power of all classes of stock of the Company or any Subsidiary. 
 4.4 Option Vesting and Exercisability.
Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee at or after grant. The Committee may provide, in its discretion, that any Stock Option shall be exercisable only in
installments, and the Committee may waive such installment exercise provisions at any time in whole or in part based on such factors as the Committee may determine, in its sole discretion, including but not limited to in connection with any Change
in Control of the Company, as defined in Article 12 herein. Notwithstanding the foregoing, the Committee may accelerate (i) the vesting of any Option (including an Incentive Stock Option) and (ii) the date on which any Option first
becomes exercisable. An Incentive Stock Option shall not be exercisable until such Incentive Stock Option is vested. 
 4.5 Expiration of
Options. A Grantee’s Options shall expire as set forth in the applicable Award Agreement. Notwithstanding anything to the contrary in the Plan, if the Committee determines after the Grantee’s Termination of Employment that the Grantee

  

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has engaged in conduct constituting Cause (whether before or after such Termination of Employment), the Grantee’s Options shall terminate immediately to
the extent not exercised in accordance with the terms of this Agreement. 
 ARTICLE V 
 EXERCISE OF OPTIONS 
 5.1 Partial Exercise. An exercisable Option may be
exercised in whole or in part, as determined by the Committee on the date of grant. However, an Option shall not be exercisable with respect to fractional shares and the Committee may require that, by the terms of the Option, a partial exercise be
with respect to a minimum number of shares. 
 5.2 Manner of Exercise. All or a portion of an exercisable Option shall be deemed
exercised upon delivery of all of the following to the Secretary of the Company or the Secretary’s office: 
 (a) A written notice
complying with the applicable rules established by the Committee stating that the Option, or a portion thereof, is to be exercised. The notice shall be signed by the Optionee or other person then entitled to exercise the Option or such portion
thereof; 
 (b) Such representations and documents as the Committee, in its absolute discretion, deems necessary or advisable to effect
compliance with all applicable provisions of the Securities Act of 1933, as amended, and any other federal or state securities laws or regulations. The Committee may, in its absolute discretion, also take whatever additional actions it deems
appropriate to effect such compliance, including, without limitation, placing legends on share certificates and issuing stop-transfer notices to agents and registrars; 
 (c) In the event that the Option shall be exercised pursuant to Section 5.1 by any person or persons other than the Optionee, appropriate proof of the right of such person or persons to exercise the Option; and

 (d) Full cash payment to the Secretary of the Company for the shares of Common Stock with respect to which the Option, or portion thereof,
is exercised. However, at the discretion of the Committee and subject to compliance with applicable statutory and regulatory guidance, the terms of the Option and related Award Agreement may (i) allow payment, in whole or in part, through the
delivery of shares of Common Stock owned by the Optionee, duly endorsed for transfer to the Company with a Fair Market Value on the date of delivery equal to the aggregate exercise price of the Option or exercised portion thereof; (ii) allow
payment, in whole or in part, through the surrender of shares of Common Stock then issuable upon exercise of the Option having a Fair Market Value on the date of Option exercise equal to the aggregate exercise price of the Option or exercised
portion thereof; (iii) allow payment through any combination of cash, the delivery shares or surrender of shares; or (iv) if the Common Stock is then traded on a 

  

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national securities exchange, allow payment by delivery of an irrevocable undertaking, satisfactory in form and substance to the Company, by a creditworthy
securities broker to sell shares of Common Stock issuable upon the exercise of the Option or portion thereof and to deliver promptly to the Company, the proceeds of such sale in an amount necessary and sufficient to fund the aggregate exercise price
and any applicable withholding or employment taxes, or allow payment by delivery by the Optionee to the Company of a copy of irrevocable instructions, satisfactory in form and substance to the Company, to a creditworthy securities broker to sell
shares of Common Stock issuable upon the exercise of the Option or portion thereof and to deliver promptly to the Company the proceeds of such sale in an amount necessary and sufficient to fund the aggregate exercise price and any applicable
withholding or employment taxes. 
 5.3 Conditions to Issuance of Stock Certificate. The Company shall not be required to issue or
deliver any certificate or certificates for shares of Common Stock purchased upon the exercise of any Option or portion thereof prior to fulfillment of all of the following conditions: 
 (a) The admission of such shares to listing on all stock exchanges on which such class of stock is then listed; 
 (b) The completion of any registration or other qualification of such shares under any state or federal law, or under the rulings or regulations of the
Securities and Exchange Commission or any other governmental regulatory body which the Committee shall, in its absolute discretion, deem necessary or advisable; 
 (c) The obtaining of any approval or other clearance from any state or federal governmental agency which the Committee shall, in its absolute discretion, determine to be necessary or advisable; 
 (d) The lapse of such reasonable period of time following the exercise of the Option as the Committee may establish from time to time for reasons of
administrative convenience; 
 (e) The receipt by the Company of full payment for such shares, including payment of any applicable
withholding or employment tax; and 
 (f) Compliance with the terms of this Plan and any other applicable agreements pertaining to the Award.

 5.4 Rights as Stockholders. The holders of Options shall not be, nor have any of the rights or privileges of, stockholders of the
Company in respect of any shares purchasable upon the exercise of an Option unless and until certificates representing such shares have been issued by the Company to such holders and such holder has entered into any applicable stockholder agreement,
as determined by the Committee in its sole discretion. 
 5.5 Ownership and Transfer Restrictions. In addition to the restrictions set
forth in Section 12.1 of this Plan, the Committee, in its absolute discretion, may impose 

  

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such restrictions on the ownership and transferability of the shares purchasable upon the exercise of an Option as it deems appropriate. Any such restriction
shall be set forth in the respective Option Award Agreement and may be referred to on the certificates evidencing such shares. The Committee may require the Optionee to give the Company prompt notice of any disposition of shares of Common Stock
acquired by exercise of an Incentive Stock Option within (i) two (2) years from the date the Option was granted or (ii) one (1) year after the transfer of such shares to the Optionee. The Committee may direct that the
certificates evidencing shares acquired by exercise of an Option refer to such requirement to be given prompt notice of disposition. 
 ARTICLE VI 
 AWARD OF RESTRICTED STOCK AND STOCK UNITS 
 6.1 Award of Restricted Stock. 
 (a)
The Committee shall from time to time, in its absolute discretion, select which Eligible Grantees shall be awarded Restricted Stock or Restricted Stock Units, and determine the purchase price, if any, and other terms and conditions applicable to
such Restricted Stock or Restricted Stock Units, consistent with this Plan. 
 (b) The Committee shall establish the purchase price, if any,
and form of payment for Restricted Stock or Restricted Stock Units, including any consideration required by applicable law. Awards of Restricted Stock or Restricted Stock Units may be made for no consideration (other than par value of the shares
which is deemed paid by services already rendered). The Committee shall instruct the Secretary of the Company to issue such Restricted Stock or Restricted Stock Units, and may impose such conditions on the issuance of such Restricted Stock or
Restricted Stock Units, as it deems appropriate. 
 6.2 Restricted Stock Agreement. Restricted Stock and Restricted Stock Unit grants
shall be issued only pursuant to a written Award Agreement, which shall be executed by the Grantee and an authorized officer of the Company and which shall contain such terms and conditions as the Committee shall determine, consistent with this
Plan. 
 6.3 Rights as Stockholders. Upon delivery of the shares of Restricted Stock to the escrow holder pursuant to
Section 6.5, the Grantee of a Restricted Stock Award shall have, unless otherwise provided by the Committee, all the rights of a stockholder with respect to said shares, subject to the restrictions set forth in the applicable Award Agreement
and any applicable stockholder agreement, including the right to receive all dividends and other distributions paid or made with respect to the shares; provided, however, that in the discretion of the Committee, any extraordinary
distributions with respect to shares of Common Stock shall be subject to the restrictions set forth in Section 6.4. 
  

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 6.4 Restriction. All shares of Restricted Stock and Restricted Stock Units issued under this Plan
(including any shares received by holders thereof with respect to shares of Restricted Stock as a result of stock dividends, stock splits or any other form of recapitalization) shall, in the terms of applicable Award Agreement, be subject to such
restrictions as the Committee shall provide, which restrictions may include, without limitation, restrictions concerning voting rights and transferability and restrictions based on duration of employment with the Company, Company performance and
individual performance; provided, however, that by a resolution adopted after the Restricted Stock or Restricted Stock Unit is granted, the Committee may, on such terms and conditions as it may determine to be appropriate, remove any
or all of the restrictions imposed by the terms of the applicable Award Agreement. Restricted Stock may not be sold or encumbered until all restrictions are terminated or expire. 
 6.5 Escrow. The Secretary of the Company or such other escrow holder as the Committee may appoint shall retain physical custody of each
certificate representing Restricted Stock until all of the restrictions imposed under the applicable Award Agreement with respect to the Restricted Stock evidenced by such certificate expire or shall have been removed. 
 6.6 Legend. In order to enforce the restrictions imposed upon shares of Restricted Stock hereunder, the Committee shall cause a legend or legends
to be placed on certificates representing all shares of Restricted Stock that are still subject to restrictions under applicable Award Agreements, which legend or legends shall make appropriate reference to the conditions imposed thereby.

 ARTICLE VII 
 STOCK
APPRECIATION RIGHTS 
 7.1 Grant of SARs. Subject to the provisions of the Plan, the Committee may grant rights to receive any excess
in value of shares of Common Stock over the exercise price (“Stock Appreciation Rights” or “SARs”) in tandem with an Option (at or after the award of the Option), or alone and unrelated to an Option. SARs in tandem
with an Option shall terminate to the extent that the related Option is exercised, and the related Option shall terminate to the extent that the tandem SARs are exercised. The Committee shall determine at the time of grant or thereafter whether SARs
are settled in cash, Common Stock or other securities of the Company, Awards or other property, and may define the manner of determining the excess in value of the shares of Common Stock. 
 7.2 Exercise Price. The Committee shall fix the exercise price of each SAR or specify the manner in which the price shall be determined; provided,
that, such exercise price shall be no less than 100% of the Fair Market Value of a share of Common Stock on the date such SAR is granted. An SAR granted in tandem with an Option shall have an exercise price not less than the exercise price of the
related Option. SARs granted alone and unrelated to an Option may be granted at such exercise prices as the Committee may determine. 
  

 14 

 7.3 Treatment of Dividend Rights. No SAR shall include a right to dividends between the date of
grant and date of exercise in the absence of a separate agreement. 
 7.4 Other Terms. The Committee shall determine at the date of
grant or thereafter, the time or times at which and the circumstances under which an SAR may be exercised in whole or in part (including based on achievement of performance goals and/or future service requirements), the time or times at which SARs
shall cease to be or become exercisable following termination of Service or upon other conditions, the method of exercise, method of settlement, form of consideration payable in settlement which may be cash or shares of Common Stock, method by or
forms in which shares of Common Stock will be delivered or deemed to be delivered to Grantees, whether or not an SAR shall be in tandem or in combination with any other Award, and any other terms and conditions of any SAR. 
 ARTICLE VIII 
 PERFORMANCE AND ANNUAL
INCENTIVE AWARDS 
 8.1 Performance Conditions. The right of a Grantee to exercise or receive a grant or settlement of any Award, and
the timing thereof, may be subject to such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other performance measures as it may deem appropriate in establishing any performance
conditions, and may exercise its discretion to reduce the amounts payable under any Award subject to performance conditions, except as limited under Sections 8.2 hereof in the case of a Performance Award or Annual Incentive Award intended to
qualify under Section 162(m). If and to the extent required under Section 162(m), any power or authority relating to a Performance Award or Annual Incentive Award intended to qualify under Section 162(m) shall be exercised by the
Committee and not the Board. To the extent permitted by applicable law, the Committee may delegate to one or more executive officers of the Company the power to make Awards to Grantees who are not Reporting Persons or Covered Employees and all
determinations under the Plan with respect thereto, provided that the Committee shall fix the maximum amount of such Awards for all such Grantees and a maximum for any one Grantee. 
 8.2 Performance or Annual Incentive Awards Granted to Designated Covered Employees. If and to the extent that the Committee determines that a
Performance or Annual Incentive Award to be granted to a Grantee who is designated by the Committee as likely to be a Covered Employee should qualify as “performance-based compensation” for purposes of Section 162(m), the grant,
exercise and/or settlement of such Performance or Annual Incentive Award shall be contingent upon achievement of pre-established performance goals and other terms set forth in this Section 8.2. 
 (a) Performance Goals Generally. The Performance Goals for Performance Awards or Annual Incentive Awards shall consist of one or more Performance
Measures and a targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with this Section 8.2. 

  

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Performance Goals shall be objective and shall otherwise meet the requirements of Section 162(m), including the requirement that the level or levels of
performance targeted by the Committee result in the achievement of Performance Goals being “substantially uncertain.” The Committee may determine that Performance Awards or Annual Incentive Awards shall be granted, exercised and/or settled
upon achievement of any one Performance Goal or that two or more of the Performance Goals must be achieved as a condition to grant, exercise and/or settlement of such Performance Awards or Annual Incentive Awards. Performance Goals may differ for
Performance Awards or Annual Incentive Awards granted to any one Grantee or to different Grantees. 
 (b) Timing For Establishing
Performance Goals. Performance Goals shall be established not later than 90 days after the beginning of any performance period applicable to such Performance Awards or Annual Incentive Awards, or at such other date as may be required or
permitted for “performance-based compensation” under Section 162(m). 
 (c) Performance or Annual Incentive Award Pool.
The Committee may establish a Performance Award or Annual Incentive Award pool, which shall be an unfunded pool, for purposes of measuring Company performance in connection with Performance Awards or Annual Incentive Awards. 
 (d) Settlement of Performance or Annual Incentive Awards; Other Terms. Settlement of such Performance Awards or Annual Incentive Awards shall be
in cash, shares of Common Stock, other Awards or other property, in the discretion of the Committee. The Committee may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with Performance Awards or Annual
Incentive Awards. The Committee shall specify the circumstances in which Performance Awards or Annual Incentive Awards shall be paid or forfeited in the event of the Grantee’s Termination of Employment prior to the end of a performance period
or settlement of the Performance or Annual Incentive Awards. 
 8.3 Written Determinations. All determinations by the Committee as to
the establishment of Performance Goals, the amount of any Performance Award pool or potential individual Performance Awards and as to the achievement of Performance Goals relating to Performance Awards, and the amount of any Annual Incentive Award
pool or potential individual Annual Incentive Awards and the amount of final Annual Incentive Awards, shall be made in writing in the case of any Award intended to qualify under Section 162(m). To the extent required to comply with
Section 162(m), the Committee may delegate any responsibility relating to such Performance Awards or Annual Incentive Awards. 
 8.4
Status of Awards Under Section 162(m). It is the intent of the Company that Performance Awards and Annual Incentive Awards under Section 8.2 hereof granted to persons who are designated by the Committee as likely to be Covered
Employees within the meaning of Section 162(m) shall, if so designated by the Committee, constitute “qualified performance-based compensation” within the meaning of section 162(m). Accordingly, the terms of Section 8.2, including
the definitions of Covered Employee 

  

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and other terms used therein, shall be interpreted in a manner consistent with Section 162(m). The foregoing notwithstanding, because the Committee
cannot determine with certainty whether a given Grantee will be a Covered Employee with respect to a fiscal year that has not yet been completed, the term Covered Employee as used herein shall mean only a person designated by the Committee, at the
time of grant of a Performance Award or an Annual Incentive Award, as likely to be a Covered Employee with respect to that fiscal year. If any provision of the Plan or any Award Agreement relating to such Performance Awards or Annual Incentive
Awards does not comply or is inconsistent with the requirements of Section 162(m), such provision shall be construed or deemed amended to the extent necessary to conform to such requirements. 
 ARTICLE IX 
 PARACHUTE LIMITATIONS 

Notwithstanding any other provision of this Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by a
Grantee with the Company or any Affiliate, except an agreement, contract, or understanding between the Grantee and the Company or any Affiliate that modifies or excludes application of this paragraph (an “Other Agreement”), and
notwithstanding any formal or informal plan or other arrangement for the direct or indirect provision of compensation to the Grantee (including groups or classes of Grantees or beneficiaries of which the Grantee is a member), whether or not such
compensation is deferred, is in cash, or is in the form of a benefit to or for the Grantee (a “Benefit Arrangement”), if the Grantee is a “disqualified individual,” as defined in Section 280G(c) of the Code, any Award
held by that Grantee and any right to receive any payment or other benefit under this Plan shall not become exercisable or vested (i) to the extent that such right to exercise, vesting, payment, or benefit, taking into account all other rights,
payments, or benefits to or for the Grantee under this Plan, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Grantee under this Plan to be considered a “parachute payment” within the meaning of
Section 280G(b)(2) of the Code as then in effect (a “Parachute Payment”) and (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax amounts received by the Grantee from the Company under this Plan,
all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by the Grantee without causing any such payment or benefit to be considered a Parachute Payment. In the event that the receipt
of any such right to exercise, vesting, payment, or benefit under this Plan, in conjunction with all other rights, payments, or benefits to or for the Grantee under any Other Agreement or any Benefit Arrangement would cause the Grantee to be
considered to have received a Parachute Payment under this Plan that would have the effect of decreasing the after-tax amount received by the Grantee as described in clause (ii) of the preceding sentence, then the Grantee shall have the right,
in the Grantee’s sole discretion, to designate those rights, payments, or benefits under this Plan, any Other Agreements, and any Benefit Arrangements that should be reduced or eliminated so as to avoid having the payment or benefit to the
Grantee under this Plan be deemed to be a Parachute Payment. 
  

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 ARTICLE X 
 UNRESTRICTED AND DEFERRED STOCK, DIVIDEND EQUIVALENT RIGHTS, 
 OR OTHER AWARDS 
 10.1 Dividend Equivalents. Any Eligible Grantee selected by the Committee may be granted Dividend Equivalent Rights. A Dividend Equivalent Right
is an Award entitling the recipient to receive credits based on cash distributions that would have been paid on the shares of Common Stock specified in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued
to and held by the recipient. A Dividend Equivalent Right may be granted hereunder to any Grantee as a component of another Award or as a freestanding Award. The terms and conditions of Dividend Equivalent Rights shall be specified in the grant.
Dividend Equivalent Rights credited to the holder of a Dividend Equivalent Right may be paid currently, may be accrued and paid at a later date subject to completion of a vesting condition or may be deemed to be reinvested in additional shares of
Common Stock, which may thereafter accrue additional equivalents. Any such reinvestment shall be at the Fair Market Value of a share of Common Stock on the date of reinvestment. Dividend Equivalent Rights may be settled in cash or Common Stock or a
combination thereof, in a single installment or installments, all determined in the sole discretion of the Committee. A Dividend Equivalent Right granted as a component of another Award may provide that such Dividend Equivalent Right shall be
settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other award. A Dividend Equivalent
Right granted as a component of another Award may also contain terms and conditions different from such other award. 
 10.2 Unrestricted
Stock. The Committee may, in its sole discretion, grant (or sell at par value or such other higher purchase price determined by the Committee) an Unrestricted Stock Award to any Grantee pursuant to which such Grantee may receive shares of Common
Stock free of any restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards may be granted or sold as described in the preceding sentence in respect of past services and other valid consideration, or in lieu of,
or in addition to, any cash compensation due to such Grantee. 
 10.3 Deferred Stock. Any Eligible Grantee selected by the Committee
may be granted an Award of Deferred Stock in the manner determined from time to time by the Committee. The number of shares of Deferred Stock shall be determined by the Committee and may be linked to the market value, book value, net profits or
other measure of the value of Common Stock or other specific performance criteria determined appropriate by the Committee. Common Stock underlying a Deferred Stock Award will not be issued until the Deferred Stock Award has vested, pursuant to a
vesting schedule or performance criteria set by the Committee. Unless otherwise provided by the Committee, a Grantee of Deferred Stock shall have no rights as a Company stockholder with respect to such Deferred Stock until such time as the Award has
vested and the Common Stock underlying the Award has been issued. 
  

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 10.4 Other Stock Based Awards. The Committee shall have the right to grant such Awards based upon
the Common Stock having terms and conditions as the Committee may determine, including, without limitation, the grant of shares based upon certain conditions, the grant of securities convertible into Common Stock and the grant of warrants to
purchase Common Stock. 
 10.5 Form of Agreement. Each Award granted pursuant to this Article X shall be evidenced by an Award
Agreement, which shall be executed by the Grantee and an authorized officer of the Company and which shall contain such terms and conditions as the Committee shall determine, consistent with this Plan, including the term of the Award and payment on
exercise and vesting. 
 ARTICLE XI 
 ADMINISTRATION 
 11.1 Compensation Committee. The Compensation Committee (or a subcommittee of the Board assuming the
functions of the Committee under this Plan) shall consist of two (2) or more Directors appointed by and holding office at the pleasure of the Board. To the extent applicable, the members of the Committee shall each be an “outside
director” as defined under Section 162(m). Appointment of Committee members shall be effective upon acceptance of appointment. Committee members may resign at any time by delivering written notice to the Board. Vacancies in the Committee
may be filled by the Board. 
 To the extent applicable, during the period any Independent Director is serving on the Committee, he or she
shall not (i) be an officer of the Company or a parent or Subsidiary of the Company, or otherwise currently employed by the Company or a parent or Subsidiary of the Company; (ii) receive compensation, either directly or indirectly, from
the Company or a parent or Subsidiary of the Company for services rendered as a consultant or in any capacity other than as a Director, except for an amount that does not exceed the dollar amount for which disclosure would be required pursuant to
Rule 404(a) of the Exchange Act; (iii) possess an interest in any other transaction for which disclosure would be required pursuant to Rule 404(a); and (iv) be engaged in a business relationship for which disclosure would be required
pursuant to Rule 404(b). The requirements of this subsection are intended to comply with Rule 16b-3 under Section 16 of the Exchange Act or any successor rule or regulation, and shall be interpreted and construed in a manner which assures
compliance with said Rule. To the extent said Rule 16b-3 is modified to reduce or increase the restrictions on who may serve on the Committee, the Plan shall be deemed modified in a similar manner. 
 11.2 Duties and Powers of Committee. The Committee shall be responsible for the administration of the Plan. The Committee shall select the
Grantees to receive Awards and determine the terms and conditions of such Awards. To the extent permitted by applicable law, the Committee may delegate to one or more executive officers of the Company the power to make Awards to Grantees who are not
Reporting Persons or Covered Employees and all determinations under the Plan with respect thereto, provided 

  

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that the Committee shall fix the maximum amount of such Awards for all such Grantees and a maximum for any one Grantee. It shall be the duty of the Committee
to conduct the general administration of this Plan in accordance with its provisions. The Committee shall have the power to interpret this Plan and the agreements pursuant to which Awards are granted or awarded, and to adopt such rules for the
administration, interpretation, and application of this Plan as are consistent therewith and to interpret, amend or revoke any such rules. Any Awards need not be the same with respect to each Grantee. Any such interpretations and rules with respect
to Incentive Stock Options shall be consistent with the provisions of Section 422 of the Code. In its absolute discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under this Plan
except with respect to matters which under Rule 16b-3 or Section 162(m), or any regulations or rules issued thereunder, are required to be determined in the sole discretion of the Committee. In this regard, to the extent that the guidelines
pursuant to Section 162(m) are applicable, not only will the Committee consist solely of two or more outside directors but the Committee shall be required to certify that any Performance Goals and/or other material terms associated with any
Award have been satisfied prior to the payment of any Award pursuant to Article VIII. 
 11.3 Majority Rule. The Committee shall act
by a majority of its members in attendance at a meeting at which a quorum is present or by a memorandum or other written instrument signed by all members of the Committee. 
 11.4 Expense Reimbursement; Professional Assistance; Good Faith Actions. All expenses and liabilities which members of the Committee incur in
connection with the administration of this Plan shall be borne by the Company. The Committee may, with the approval of the Board, employ attorneys, consultants, accountants, appraisers, brokers, or other persons. The Committee, the Company and the
Company’s officers and Directors shall be entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken and all interpretations and determinations made by the Committee in good faith shall be final and binding
upon all Grantees, the Company and all other interested persons. No members of the Committee or Board shall be personally liable for any action, determination or interpretation made in good faith with respect to this Plan or any Award under this
Plan and the Committee and the Board shall be fully protected and indemnified by the Company in respect of any such action, determination or interpretation. 
 ARTICLE XII 
 MISCELLANEOUS PROVISIONS 
 12.1 Not Transferable. Except as otherwise provided in an Award Agreement, Awards under this Plan may not be sold, pledged, assigned, or
transferred in any manner other than by will or the laws of descent and distribution, unless and until such rights or awards have been exercised, or the shares underlying such rights or awards have been issued, and all restrictions applicable to
such shares have lapsed. No Award or interest or right therein shall be liable for the debts, contracts or engagements of the Grantee or his or her successors in interest nor shall it be subject to disposition by transfer, alienation, 

  

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anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect; provided however, that this Section 12.1 shall not prevent
(1) transfers by will or by the applicable laws of descent and distribution, or (2) the designation of a beneficiary to exercise any Option or other right or award (or any portion thereof) granted under the Plan after the Grantee’s
death. 
 During the lifetime of the Grantee, only the Grantee may exercise an Option or other Award (or any portion thereof) granted under
the Plan. After the death of the Grantee, any exercisable portion of an Option or other Award may, subject to the terms of such Option or other Award, be exercised by the Grantee’s personal representative or by any person empowered to do so
under a beneficiary designation, under a will or under the then applicable laws of descent and distribution. 
 12.2 Amendment, Suspension
or Termination of this Plan. This Plan shall terminate on the tenth anniversary of the Board’s adoption of this Plan. This Plan may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to
time by the Committee. However, without approval of the Company’s stockholders given within twelve months before or after the action by the Committee, no action of the Committee may, except as provided in Section 12.3, increase the limits
imposed in Section 2.1 on the maximum number of shares which may be issued under this Plan, increase the per-Grantee limitations in Section 2.3 or change the class of employee entitled to participate in the Plan, and no action of the
Committee may be taken that would otherwise require stockholder approval as a matter of applicable law, regulation or rule. No amendment, suspension or termination of this Plan shall, without the consent of the holder, alter or impair any rights or
obligations under any Award granted or awarded, unless the Award itself otherwise expressly so provides. No Awards may be granted or awarded during any period of suspension or after termination of this Plan, and in no event may any Incentive Stock
Option be granted under this Plan after the first to occur of the following events: 
 (a) The expiration of ten years from the date the Plan
is adopted by the Board; or 
 (b) The expiration of ten years from the date the Plan is last approved by the Company’s stockholders
under Section 12.3. 
 12.3 Approval of Plan by Stockholders. This Plan will be submitted for the approval of the Company’s
stockholders within twelve months after the date of the Board’s initial adoption of this Plan. Options, Performance Awards, Dividend Equivalent Rights, Stock Payments or other Awards may be granted and Restricted Stock, Restricted Stock Units,
or Deferred Stock may be awarded prior to such stockholder approval, provided that such Options, Performance Awards, Dividend Equivalent Rights, Stock Payments or other awards shall not be exercisable and such Restricted Stock, Restricted Stock
Units, or Deferred Stock shall not vest prior to the time when this Plan is approved 

  

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by the stockholders, and provided further that if such approval has not been obtained at the end of said twelve (12) month period, all Options,
Performance Awards, Dividend Equivalent Rights, Stock Payments or other awards previously granted and all Restricted Stock, Restricted Stock Units, or Deferred Stock previously awarded under this Plan shall thereupon be canceled and become null and
void. 
 12.4 Limitations Applicable to Section 16 Persons and Performance-Based Compensation. Notwithstanding any other
provision of this Plan, any Award granted or awarded, to an Employee or Director who is then subject to Section 16 of the Exchange Act, shall be subject to any additional limitations set forth in any applicable exemptive rule under
Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule, and this Plan shall be deemed amended to the extent necessary to conform to such
limitations. Furthermore, notwithstanding any other provision of this Plan, any Option or other Awards intended to qualify as performance-based compensation as described in Section 162(m)(4)(C) of the Code shall be subject to any additional
limitations set forth in Section 162(m) (including any amendments to Section 162(m)) or any Treasury regulations or rulings issued thereunder that are requirements for qualification as performance-based compensation as described in
Section 162(m)(4)(C) of the Code, and this Plan shall be deemed amended to the extent necessary to conform to such requirements. 
 12.5
Effect of Plan Upon Options and Compensation Plans. The adoption of this Plan shall not affect any other compensation or incentive plans in effect for the Company or any Subsidiary. Neither Awards made under this Plan nor shares of Common
Stock or cash paid pursuant to such Awards may be included as “compensation” for purposes of computing the benefits payable to any Grantee under the Company’s or any Subsidiary’s or Affiliate’s retirement plans (both
qualified and nonqualified) or welfare benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a Grantee’s benefit. Nothing in this Plan shall be construed to limit the right of
the Company (1) to establish any other forms of incentives or compensation for Employees of the Company or any Subsidiary or (2) to grant or assume options or other rights otherwise than under this Plan in connection with any proper
corporate purpose including but not by way of limitation, the grant or assumption of options in connection with the acquisition by purchase, lease, merger, consolidation or otherwise, of the business, stock or assets of any corporation, partnership,
firm or association. 
 12.6 Compliance with Laws. This Plan, the granting and vesting of Awards under this Plan and the issuance and
delivery of shares of Common Stock and the payment of money under this Plan or under such Awards made hereunder are subject to compliance with all applicable federal and state laws, rules and regulations (including but not limited to state and
federal securities law and federal margin requirements and the requirements of the Code) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in
connection therewith. Any securities delivered under this Plan shall be subject to such restrictions, and the person acquiring such securities shall, if requested by 

  

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the Company, provide such assurances and representations to the Company as the Company may deem necessary or desirable to assure compliance with all
applicable legal requirements. To the extent permitted by applicable law, the Plan and Awards made hereunder shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
 12.7 Titles. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Plan.

 12.8 Governing Law. This Plan and any agreements hereunder shall be administered, interpreted and enforced under the internal laws
of the State of Delaware without regard to conflicts of laws thereof. Unless otherwise provided in the Award Agreement, recipients of an Award under this Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state
courts of Delaware, to resolve any and all issues that may arise out of or relate to this Plan or any related Award Agreement. 
 12.9
Change in Control. Notwithstanding any other provision of the Plan, and the provisions of any particular Award Agreement, in the event of any Change in Control (as defined below) of the Company, and in anticipation thereof if required by the
circumstances, the Board, in its sole discretion (and in addition to or in lieu of any actions permitted to be taken by the Company under the terms of any particular Award Agreement), may, on either an overall or a Grantee by Grantee basis,
(i) accelerate the exercisability, prior to the effective date of such Change in Control, of any outstanding Options and SARs (and terminate the restrictions applicable to Restricted Stock Units and any shares of Restricted Stock),
(ii) upon written notice, provide that any outstanding Options and SARs must be exercised, to the extent then exercisable, within a specified number of days after the date of such notice, at the end of which period such Options shall terminate,
(iii) if there is a surviving or acquiring entity, and subject to the consummation of such Change in Control, cause that entity or a Subsidiary of that entity to grant replacement awards having such terms and conditions as the Board determines
to be appropriate in its sole discretion, upon which replacement the replaced Awards shall be terminated or cancelled, as the case may be, (iv) terminate any outstanding Awards and make such payments, if any, therefor (or cause the surviving or
acquiring entity to make such payments, if any, therefor) as the Board determines to be appropriate in its sole discretion (including, without limitation, with respect to only the then exercisable portion of such Options and SARs based on the Fair
Market Value of the underlying shares of Common Stock as determined by the Board in good faith), upon which termination such Options and SARs shall immediately cease to have any further force or effect, (v) repurchase (or cause the surviving or
acquiring entity to purchase) any shares of Restricted Stock for such amounts, if any, as the Board determines to be appropriate in its sole discretion (including, without limitation, an amount with respect to only the vested portion of such shares
(i.e., the portion that is not then subject to forfeiture or repurchase at a price less than their value), based on the Fair Market Value of such vested portion as determined by the Board in good faith), upon which purchase the holder of such shares
shall surrender such shares to the purchaser, or (vi) take any combination (or none) of the foregoing actions. A “Change in Control” shall mean and include any of the following: 
 (a) consummation of a merger or consolidation of the Company with or into any other corporation or other entity in which holders of the Company’s
voting securities immediately prior to such merger or consolidation will not, directly or indirectly, continue to hold at least a majority of the outstanding voting securities of the Company; 
  

 23 

 (b) a sale, lease, exchange or other transfer (in one transaction or a related series of transactions) of
all or substantially all of the Company’s assets; 
 (c) the acquisition by any person or any group of persons, acting together in any
transaction or related series of transactions, of such quantity of the Company’s voting securities as causes such person, or group of persons, to own beneficially, directly or indirectly, as of the time immediately after such transaction or
series of transactions, 50% or more of the combined voting power of the voting securities of the Company other than as a result of (i) an acquisition of securities directly from the Company or (ii) an acquisition of securities by the
Company which by reducing the voting securities outstanding increases the proportionate voting power represented by the voting securities owned by any such person or group of persons to 50% or more of the combined voting power of such voting
securities; or 
 (d) a change in the composition of the Board within a two (2) year period such that a majority of the members of the
Board are not Continuing Directors; or 
 (e) the liquidation or dissolution of the Company. 
 12.10 Withholding. Requirements and Arrangements. 
 (a) Options and SARs. In the case of any Option or SAR, the Committee may require the Grantee to remit to the Company an amount sufficient to satisfy the federal, state and local withholding and employment tax
obligations of the Company with respect to the exercise of such Option (or make other arrangements satisfactory to the Committee with regard to such taxes, including withholding from regular cash compensation, providing other security to the
Company, or remitting or foregoing the receipt of shares of Common Stock having a Fair Market Value on the date of delivery sufficient to satisfy such minimum statutory obligations) prior to the delivery of any shares in respect of such Option or
SAR. 
 (b) Restricted Stock. In the case of any shares of Restricted Stock that are “substantially vested” (within the
meaning of Treasury Regulations Section 1.83-3(b)) upon issuance, the Committee may require the Grantee to remit to the Company an amount sufficient to satisfy the federal, state or local withholding and employment tax requirements (or make
other arrangements satisfactory to the Company with regard to such taxes, including withholding from regular cash compensation, providing other security to the Company, or remitting or foregoing the receipt of shares of Common Stock having a Fair
Market Value on the date of delivery sufficient to satisfy such minimum statutory obligations) prior to the issuance of any such shares. In the case of any shares of Restricted Stock that are not “substantially vested” upon issuance, if
the 

  

 24 

 
Committee determines that under applicable law and regulations the Company could be liable for the withholding of any federal or state tax with respect to
such shares of Common Stock, the Committee may require the Grantee to remit to the Company an amount sufficient to satisfy any such potential liability (or make other arrangements satisfactory to the Company with respect to such taxes, including
withholding from regular cash compensation, providing other security to the Company, or remitting or foregoing the receipt of shares of Common Stock having a Fair Market Value on the date of delivery sufficient to satisfy such obligations) at the
time such shares of Restricted Stock are delivered to the Grantee, at the time the Grantee makes an election under Section 83(b) of the Code with respect to such shares of Restricted Stock and/or at the time such shares become
“substantially vested,” and to agree to augment such security from time to time in any amount reasonably deemed necessary by the Committee to preserve the adequacy of such security. 
 (c) Other Awards. In the case of payment, whether in cash or shares of Common Stock, under any Award not specified in paragraphs (a) and
(b) above, the Committee may require the Grantee to remit to the Company an amount sufficient to satisfy the federal, state and local withholding and employment tax obligations of the Company with respect to such payments (or make other
arrangements satisfactory to the Committee with regard to such taxes, including withholding from regular cash compensation, providing other security to the Company, or remitting or foregoing the receipt of shares of Common Stock having a Fair Market
Value on the date of delivery sufficient to satisfy such minimum statutory obligations) prior to the delivery of any cash or shares of Common Stock in respect of such Award, if any. 
 (d) Retention of Shares. With respect to any Grantee subject to Section 16(a) of the Exchange Act, any retention of shares of Common Stock by
the Company to satisfy a tax obligation with respect to such Grantee shall be made in compliance with any applicable requirements of Rule 16b-3(e) or any successor rule under the Exchange Act. 
 (e) Offset Against Payments. The Company may, to the extent permitted by law, deduct any tax obligations of a Grantee from any payment of any kind
otherwise due to the Grantee hereunder. 
 12.11 Adjustments. Upon the happening of any of the following described events, a
Grantee’s rights with respect to Awards granted hereunder shall be adjusted as hereinafter provided, unless otherwise specifically provided in the Award Agreement: 
 (a) Stock Splits and Recapitalizations. In the event the Company issues any of its shares of Common Stock as a stock dividend upon or with respect to the shares, or in the event shares of Common Stock shall be
subdivided or combined into a greater or smaller number of shares, or if, upon a merger or consolidation, reorganization, split-up, liquidation, combination, recapitalization or the like of the Company, shares of Common Stock shall be exchanged for
other securities of the Company, securities of another entity, cash or other property, each Grantee upon exercising an Option (for the purchase price to be paid under the Option) shall be entitled to purchase such number of 

  

 25 

 
shares, other securities of the Company, securities of such other entity, cash or other property as the Grantee would have received if the Grantee had been
the holder of the shares with respect to which the award is exercised at all times between the grant date of the Award and the date of its exercise, and appropriate adjustments shall be made in the purchase price per share. In determining whether
any Award granted hereunder has vested, appropriate adjustments will be made for distributions and transactions described in this Section 12.11(a). The Committee shall adjust the number of shares subject to outstanding awards and the exercise
price and the terms of outstanding awards to take into consideration material changes in accounting practices or principles, extraordinary dividends, acquisitions or dispositions of stock or property, or any other event if it is determined by the
Committee that such adjustment is appropriate to avoid distortion in the operation of the Plan, including adjustments of the limitations in Sections 2.1 and 2.3 on the maximum number and kind of shares which may be issued. Where an adjustment
of the type described above is made to an Incentive Stock Option under this Section 12.11, the adjustment will be made in a manner which will not be considered a “modification” under the provisions of subsection 424(h)(3) of the Code.

 (b) Restricted Stock. If any person owning Restricted Stock receives new or additional or different shares or securities
(“New Securities”) in connection with a corporate transaction or stock dividend described in Section 12.11(a) as a result of owning such Restricted Stock, the New Securities shall be subject to all of the conditions and
restrictions applicable to the Restricted Stock with respect to which such New Securities were issued. Notwithstanding the foregoing, any adjustment under this Section 12.11(b) shall not be permitted to the extent that the individual award or
this Plan, in general, would constitute deferred compensation subject to Section 409A of the Code unless the Award Agreement sets forth the terms and conditions necessary to comply with the requirements of Section 409A of the Code.

 (c) Fractional Shares. No fractional shares of Common Stock shall be issued under the Plan. Any fractional shares of Common Stock
which, but for this Section 12.11(c), would have been issued shall be deemed to have been issued and immediately sold to the Company for their Fair Market Value, and the Grantee shall receive from the Company cash in lieu of such fractional
shares of Common Stock. 
 (d) Further Adjustment. Upon the happening of any of the events described in Sections 12.11(a) or 12.11(b),
the class and aggregate number of shares set forth in Section 2.1 hereof that are subject to Awards which previously have been or subsequently may be granted under the Plan, and the number of shares set forth in Section 2.3 hereof that may
be granted to a Grantee in any year shall be appropriately adjusted to reflect the events described in such Sections. 
 (e) Assumption of
Options Upon Certain Events. In connection with a merger or consolidation of an entity with the Company or the acquisition by the Company of property or stock of an entity, the Committee may grant awards under the Plan in substitution for stock
and stock based awards issued by such entity or a subsidiary thereof, as long as such substitute awards will not constitute a deferral of compensation under Section 409A of the Code. Notwithstanding the foregoing, to the extent that the 

  

 26 

 
Committee determines that any such substitute award shall constitute a deferral of compensation under Section 409A of the Code, such award shall be
accompanied with a written award agreement which shall set forth the terms and conditions required to comply with the requirements of Section 409A of the Code. The substitute awards shall be granted on such terms and conditions as the Committee
considers appropriate in the circumstances. The awards so granted shall not reduce the number of shares that would otherwise be available for awards under the Plan. Notwithstanding the foregoing, in the event of such a reorganization, merger,
consolidation, recapitalization, reclassification, stock split-up, stock dividend or combination, or other adjustment or event which results in shares of Common Stock being exchanged for or converted into cash, securities or other property, the
Company will have the right, subject to applicable statutory and regulatory guidance, including but not limited to Section 409A of the Code, to terminate this Plan as of the date of the exchange or conversion, in which case all options, rights
and other awards under this Plan shall become the right to receive such cash, securities or other property, net of any applicable exercise price. 
 12.12 Other Transfer Restrictions. Notwithstanding any other provision of the Plan, in order to qualify for the exemption provided by Rule 16b-3 under the Exchange Act, and any successor provision, (i) any Restricted Stock
offered under the Plan to a Grantee subject to Section 16 of the Exchange Act (a “Section 16 Grantee”) may not be sold for six (6) months after acquisition and (ii) any Option or other similar right related to an
equity security issued under the Plan shall not be transferable except in accordance with the rules under Section 16 of the Exchange Act, subject to any other applicable transfer restrictions under the Plan or the Award Agreement. The Committee
shall have no authority to take any action if the authority to take such action, or the taking of such action, would disqualify a transaction under the Plan from the exemption provided by Rule 16b-3 under the Act, or any successor provision.

 12.13 Certain Indebtedness to the Company. No Option or other Award may be exercised at any time after the Committee has
determined, in good faith, that the Grantee is indebted to the Company or any Subsidiary for advances of salary, advances of expenses, recoverable draws or other amounts unless and until either (a) such indebtedness is satisfied in full or
(b) such condition is waived by the Committee. The period during which any Option or other Award may by its terms be exercised shall not be extended during any period in which the Grantee is prohibited from such exercise by the preceding
sentence, and the Company shall have no liability to any Grantee, or to any other party, if any Option or other Award expires unexercised in whole or in part during such period or if any Option that is intended to be an Incentive Stock Option is
deemed to be an Non-Qualified Option because such Option is not exercised within three (3) months after the Grantee’s Termination of Employment with the Company or a Subsidiary. 
 12.14 Foreign Nationals. Awards may be made to Grantees who are foreign nationals or employed outside the United States on such terms and
conditions different from those specified in the Plan as the Committee considers necessary or advisable to achieve the purposes of the Plan or to comply with applicable laws. 
  

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 12.15 No Right to Employment. No person shall have any claim or right to be granted an Award.
Neither the adoption, maintenance, nor operation of the Plan nor any Award hereunder shall confer upon any employee or consultant of the Company or of any Affiliate any right with respect to the continuance of his/her employment by or other service
with the Company or any such Affiliate nor shall they interfere with the rights of the Company (or Affiliate) to terminate any employee at any time or otherwise change the terms of employment, including, without limitation, the right to promote,
demote or otherwise re-assign any employee from one position to another within the Company or any Affiliate. 
 12.16 Authorization of Sub
Plans. The Board may from time to time establish one or more sub-plans under the Plan for purposes of satisfying applicable blue sky, securities or tax laws of various jurisdictions. The Board shall establish such sub-plans by adopting
supplements to this Plan containing (i) such limitations on the Board’s discretion under the Plan as the Board deems necessary or desirable or (ii) such additional terms and conditions not otherwise inconsistent with the Plan as the
Board shall deem necessary or desirable. All supplements adopted by the Board shall be deemed to be part of the Plan, but each supplement shall apply only to Grantees within the affected jurisdiction, and the Company shall not be required to provide
copies of any supplement to Grantees in any jurisdiction which is not the subject of such supplement. 
 12.17 Severability. In the
event any provision of this Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Plan, and this Plan shall be construed and enforced as if the illegal or invalid provision
had not been included. 
 12.18 Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory
body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares of Common Stock hereunder, shall relieve the Company of any liability in respect of the failure to issue
or sell such shares of Common Stock as to which such requisite authority shall not have been obtained. 
 12.19 Uncertificated Shares.
To the extent that this Plan provides for issuance of certificates to reflect the transfer of shares of Common Stock, the transfer of such shares of Common Stock may be effected on a noncertificated basis, to the extent not prohibited by applicable
law or the rules of any stock exchange. 
 12.20 Unfunded Plan. Grantees shall have no right, title, or interest whatsoever in or to
any investments that the Company, and/or its Subsidiaries, and/or its Affiliates may make to aid it in meeting its obligations under this Plan. Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be
construed to create a trust of any kind, or a fiduciary relationship between the Company and any Grantee, beneficiary, legal representative, or any other individual. To the extent that any individual acquires a right to receive payments from the
Company, its Subsidiaries, and/or its Affiliates under this Plan, such right shall be no greater than the right of an unsecured general creditor of the Company, a Subsidiary, or an Affiliate, as the case may be. All 

  

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payments to be made hereunder shall be paid from the general funds of the Company, a Subsidiary, or an Affiliate, as the case may be and no special or
separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in this Plan. 
 12.21 No Constraint on Corporate Action. Nothing in this Plan shall be construed to: (i) limit, impair, or otherwise affect the Company’s or a Subsidiary’s or an Affiliate’s right or power
to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or (ii) limit the right
or power of the Company or a Subsidiary or an Affiliate to take any action which such entity deems to be necessary or appropriate. 
 12.22
Special Provisions Relating to Section 409A of the Code. Unless otherwise indicated in the applicable Award Agreement, it is not intended that any Award under this Plan, in form and/or operation, will constitute “deferred
compensation” within the meaning of Section 409A of the Code and therefore, each Award is intended to be exempt from the requirements applicable to deferred compensation under Section 409A of the Code and the regulations thereunder.

 (a) Awards that are not intended to constitute deferred compensation. With respect to an Award that is not intended to constitute
deferred compensation within the meaning of Section 409A of the Code, (i) to the extent necessary and permitted under Section 409A of the Code, the Company is authorized to amend this Plan or applicable Award Agreement or to
substitute such Award with another Award of comparable economic value so that the Award as modified or substituted and/or the Plan as modified, remains exempt from the requirements applicable to deferred compensation under Section 409A of the
Code and (ii) the Committee shall take no action otherwise permitted under the Plan or under an Award Agreement to the extent such action shall cause such Award to be treated as deferred compensation within the meaning of Section 409A of
the Code. The Committee, in its sole discretion, shall determine to what extent, if any, this Plan or applicable Award Agreement shall be required to be so modified or substituted. Notwithstanding any provision to the contrary, such modification or
substitution shall be made without prior notice to or consent of Grantees. 
 (b) Awards that constitute deferred compensation. With
respect to an Award that constitutes deferred compensation within the meaning of Section 409A by form or operation (including, but not limited to, an Award referenced under paragraph (a) above that the Committee determines is a form of
deferred compensation), (i) to the extent necessary the Company is authorized to amend this Plan or applicable Award Agreement or to substitute such Award with another Award of comparable economic value so that the Award as modified or
substituted and/or the Plan as modified, complies with the requirements applicable to deferred compensation under Section 409A of the Code and (ii) the Committee shall take no action otherwise permitted under the Plan or under an Award
Agreement to the extent such action shall cause such Award to no longer comply with the requirements applicable to deferred compensation under Section 409A of the Code. The Committee, in its sole discretion, shall determine to what extent if
any, 

  

 29 

 
this Plan or applicable Award Agreement shall be required to be so modified or substituted. Notwithstanding any provision to the contrary, such modification
or substitution shall be made without prior notice to or consent of Grantees. 
 * * * 
 Adopted by the Board of Directors on November 16, 2006 and approved by the Company’s stockholders on December 13, 2006. 
 Amended and Restated by the Compensation Committee of the Board of Directors on June 30, 2008 and approved by the Company’s stockholders on January 28,
2009. 
  

 30

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