Please check News2 -> Template Options -> Features tab and on the bottom you have settings connected with category grid, you've probably set 1 row x 2 columns in all 3 positions, but it's 6 total articles and you set 10 in settings -> reading. These values should be the same, so if you want to have 10 articles, please set i.e. 1th and 2th field to 2 rows x 2 columns and 3th to 1 rows x 1 column, then it should work properly (also with pagination)