Document:

Executive Employment Agreement btwn United PanAm and Stacy M. Friederichsen

 Exhibit 10.4 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 This Executive Employment Agreement (“Agreement”) is made
effective as of January 1, 2007 (“Effective Date”), by and between Stacy M. Friederichsen (“Executive”) and United PanAm Financial Corp and its subsidiary United Auto Credit Corporation, both of which may be referred to
interchangeably hereinafter as “Company”. 
 The parties agree as follows: 
 1. Employment. The Company hereby employs Executive, and Executive hereby accepts such employment, upon the terms and conditions set forth herein.

 2. Duties. 
 2.1
Position. Executive is employed on a full-time basis as Chief Administrative Officer and Executive Vice President of the Company, shall report directly to President and CEO,”).,and shall have the duties and responsibilities commensurate
with such position as shall be reasonably and in good faith determined from time to time by the Board of Directors (the “Board). 
 2.2
Obligations. Executive shall: (i) abide by all federal, state and local laws, regulations and ordinances and as applicable, all policies and charter documents of the Company and its affiliates, and (ii) except for vacation and
illness periods, devote substantially all of his business time, energy, skill and efforts to the performance of his duties hereunder in a manner that will faithfully and diligently further the business interests of the Company. 
 3. Term. The term of this Agreement shall commence on the Effective Date and shall continue until December 31, 2009, unless earlier
terminated as herein provided (the “Initial Term”). As used herein, “Term” shall include the Initial Term and any Extended Term, but the Term of this Agreement shall end upon any termination of Executive’s employment with
the Company as herein provided. 
 4. Compensation. 
 4.1 Base Salary. As compensation for Executive’s performance of Executive’s duties and subject to Executive’s continued employment pursuant to this Agreement up to and through such times, the
Company shall pay or cause to be paid to Executive the annual base salary set forth in Exhibit A hereto during the Term of Employment (“Base Salary”), payable in accordance with the normal payroll practices of the Company or the paying
entity, less all legally required or authorized payroll deductions and tax withholdings. During the Term of Employment, the Base Salary amount set forth in Exhibit A may be increased from time to time at the sole and absolute discretion of the
Board. 
  

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 4.2 Bonuses. 
 (a) Target Bonus. Executive shall be eligible to receive an annual bonus payment based on the payout formula and Target Bonus amount set forth in Exhibit A. Such bonus payment shall be paid no later than the
sixty (60) day anniversary of the last day of the applicable performance period, less all legally required or authorized payroll deductions and tax withholdings. Each performance period during the Term of this Agreement shall begin on the first
day of the Company’s fiscal year and end on the last day. Executive must maintain continuous employment throughout the relevant performance period to be eligible for a bonus payment under this Section 4.2(a). 
 4.3 Equity Compensation. Executive shall be eligible to receive grants of stock options and/or restricted stock awards (“Equity Compensation
Awards”) pursuant to the Company’s [Amended and Restated 1997 Employee Stock Incentive Plan] (the “Plan”) as set forth in Exhibit B. Stock option awards shall be made with an exercise price equal to the fair market value of the
underlying Shares on the date of grant. . 
 5. Health and Welfare Benefits. Executive shall be eligible for all health and welfare
benefits generally available to full-time employees of the Company of similar rank and status, subject to the terms and conditions of the Company’s policies and benefit plan documents. 
 6. Vacation. Executive shall be entitled to earn vacation at the rate of four (4) weeks per year. 
 7. Business and Personal Expenses. Executive shall be reimbursed for all reasonable, out-of-pocket business expenses incurred in the performance
of Executive’s duties on behalf of the Company, provided that Executive furnish to the Company adequate records and other documentation as may be required for the substantiation of such expenditures as a business expense of the Company.

 8. Automobile Allowance. Executive shall receive an automobile allowance of three-hundred and fifty dollars ($350) per month.

 9. Termination of Employment. Subject to the terms and conditions of this Section 9, either the Company or Executive may
terminate Executive’s employment at any time, with or without Cause (as defined in Section 9.7), during the Term of Employment. Any termination of Executive’s employment during the Term of Employment shall be communicated by written
notice of termination from the terminating party to the other party (“Notice of Termination”). The Notice of Termination shall indicate the specific provision(s) of this Agreement relied upon in effecting the termination, if any.
Termination shall be effective on the date designated by the terminating party in the Notice of Termination. In the event Executive’s employment is terminated by either party, for any reason, during the Term of Employment, the Company shall pay
the prorated Base Salary earned as of the date of Executive’s termination of employment and the accrued but unused vacation as of the date of Executive’s termination of employment to Executive upon Executive’s termination of
employment. Except as otherwise provided in this Section 9, the Company shall have no further obligation to make or provide to Executive, and Executive shall have no further right to receive or obtain from the Company, any payments or benefits
in respect of the termination of Executive’s employment with the Company during the Term of Employment. 
 9.1 Severance Upon
Involuntary Termination without Cause and Termination by Executive with Good Reason. In the event that the Company causes to occur an involuntary termination without Cause (as defined in Section 9.7(a)) or in the event that Executive
resigns from employment with the Company for Good Reason (as defined in Section 9.7(c)) during the Term of 

  

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Employment, Executive shall be entitled to a “Severance Payment” as set forth in Exhibit C; provided, however, that Executive executes a
Separation Agreement that includes a general release in favor of the Company, any successor company, and all subsidiary and related entities, and their officers, directors, shareholders, employees and agents to the fullest extent permitted by law,
drafted by and in a form reasonably satisfactory to the Company, and does not revoke the general release within any legally required revocation period, if applicable. All legally required and authorized deductions and tax withholdings shall be made
from the Severance Payment, including for wage garnishments, if applicable, to the extent required or permitted by law. Effective immediately upon termination of employment, Executive shall no longer be eligible to contribute to or to be an active
participant in any retirement or benefit plan covering employees of the Company. All other Company obligations to Executive shall be automatically terminated and completely extinguished. 
 9.2 Effect of Disability. In the event Executive’s employment is terminated on account of Disability (as defined in Section 9.7),
Executive shall be entitled to payment of the difference between (a) any monthly disability payments provided through insurance plans offered by the Company, if any, provided Executive has enrolled in such plans, has paid the costs thereof and
is otherwise eligible, and (b) the monthly Base Salary effective immediately prior to the date of termination, for a period of six (6) months following the date of termination, plus a prorated Target Bonus for such year through the date of
termination, calculated on the basis of 100% achievement of target. Both (a) and (b) in the preceding sentence shall be paid in equal monthly installments during the six month period following the date of termination. All legally required
and authorized deductions and tax withholdings shall be made from the payments described in the previous sentence, including for wage garnishments, if applicable, to the extent required or permitted by law. 
 9.3 Effect of Death. In the event Executive’s employment is terminated by reason of death, this Agreement shall terminate without further
obligations of Employer to Executive (or your heirs or legal representatives) under this Agreement, other than for payment of: (i) any unpaid base salary (as set forth in Section 4.1 hereof) through the date of termination; (ii) the
amount of any Target Bonus prorated through the date of termination, calculated on the basis of 100% achievement of target; (iii) all compensation previously deferred by you; (iv) any accrued vacation and/or sick leave pay; and
(v) any amounts due pursuant to the terms of any applicable welfare benefit plan. All of the foregoing amounts (other than any prorated bonus compensation) shall be paid to Executive’s estate or beneficiary, as applicable, in a lump sum
cash payment within thirty (30) days after the date of termination or earlier as required by applicable law. 
 9.4 Employment
Reference. In the event Executive’s employment is terminated without Cause, or Executive resigns for Good Reason, Executive and the Company will negotiate in good faith to reach an agreement on a statement reflecting a benign reason for
termination or resignation. This statement will include, at minimum, positions held, date of hire, employment period and confirmation of salary history (if requested by Executive). 
 9.5 Ineligibility For Severance. Executive shall not be entitled to any Severance Package under this Agreement, if at any time during the Term of
Employment, either (a) Executive voluntarily resigns or otherwise terminates employment with the Company other than for Good Reason, or (b) the Company involuntarily terminates Executive’s employment with Cause. Effective immediately
upon termination of employment, Executive shall no longer be eligible to contribute to or to be an active participant in any retirement or benefit plan covering employees of the Company. All other Company obligations to Executive shall be
automatically terminated and completely extinguished. 
 9.6 Taxes and Withholdings. The Company may withhold from any amounts payable
under this Agreement, including any benefits or Severance Payment, such federal, state or local taxes as may be required to be withheld pursuant to applicable law or regulations, which amounts shall be deemed to have been paid to Executive.

  

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 9.7 Definitions. 
 (a) “Cause” shall mean the occurrence during the Term of Employment of any of the following: (i) indictment for, formal admission to (including a plea of guilty or nolo contendere to), or
conviction of a felony, (ii) a crime of moral turpitude, dishonesty, breach of trust or unethical business conduct, or any crime involving the Company, (iii) willful or knowing unauthorized dissemination by Executive of Proprietary Company
Information; (iv) failure by Executive to perform Executive’s duties which are reasonably and in good faith requested in writing by the Board; (v) failure of Executive to perform any lawful directive of the Board communicated to
Executive in the form of a written request from the Board, and (vi) Executive’s breach of the Company’s Code of Conduct which would normally result in termination of any Company employee. 
 (b) “Disability” shall mean, to the extent consistent with applicable federal and state law (including, without limitation Section 409A),
Executive’s inability by reason of physical or mental illness to fulfill his obligations hereunder for ninety (90) consecutive days or for a total of one hundred and twenty (120) days in any twelve (12) month period which, in the
reasonable opinion of an independent physician selected by the Company or its insurers and reasonably acceptable to Executive or Executive’s legal representative, renders Executive unable to perform the essential functions of his job, even
after reasonable accommodations are made by the Company. The Company is not, however, required to make unreasonable accommodations for Executive or accommodations that would create an undue hardship on the Company. 
 (c) “Good Reason” shall mean the occurrence during the Term of Employment of any of the following: (i) a material breach of this
Agreement by the Company which is not cured by the Company within thirty (30) days following the Company’s receipt of written notice by Executive to the Company describing such alleged breach; (ii) the Executive’s Base Salary is
reduced by the Company or the Target Bonus formula is changed to the detriment of the Executive; (iii) a reduction in Executive’s title, a material reduction in Executive’s duties and/or responsibilities, or the assignment to
Executive of any duties materially inconsistent with Executive’s position; or (iv) relocation of the Executive’s place of work to a location greater than 35 miles away from the current location. 
 9.8 Nonduplication of Benefits. Notwithstanding any provision in this Agreement or in any other Company benefit plan or compensatory arrangement
to the contrary, but at all times subject to Section 9.5, (a) any payments due under either Section 9.2 or Section 9.3 shall be made not more than once, if at all, (b) payments may be due under either Section 9.2 or
Section 9.3, but under no circumstances shall payments be made under both Section 9.2 and Section 9.3, (c) no payments made under this Agreement shall be considered compensation for purposes of any benefit plan or compensatory
arrangement of the Company, and (d) Executive shall not be entitled to severance benefits from the Company other than as contemplated under this Agreement, unless such other severance benefits offset and reduce the benefits due under this
Agreement on a dollar-for-dollar basis, but not below zero. 
 10. No Competition and No Conflict of Interest. Executive must not
engage in any work, paid or unpaid, that could create a conflict of interest with the interests of the Company during the Term of this Agreement, and for a period of 12 months after Executive’s employment with the Company. Such work shall
include, but is not limited to, directly or indirectly competing with the Company Business in any way, or acting as an officer, director, employee, consultant, stockholder, volunteer, lender, or agent of any business enterprise of the same nature
as, or which is in direct 

  

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competition with, the Company Business or any business in which the Company becomes engaged during the Term of Employment For purposes of this Agreement, the
term “Company Business” shall mean a Sub-prime Auto Finance. 
 11. Confidentiality. During the Term of Employment,
Executive has been and will continue to be given access to a wide variety of information about the Company, its affiliates and other related businesses that the Company considers “Proprietary Company Information.” As a condition of
continued employment, Executive agrees to abide by the Company’s business policies and directives including those on confidentiality and nondisclosure of “Proprietary Company Information.” “Proprietary Company Information”
shall mean all information applicable to the business of the Company which confers or may confer a competitive advantage upon the Company over one who does not possess the information; and has commercial value in the business of the Company or any
other business in which the Company engages or is preparing to engage during Executive’s employment with the Company. “Proprietary Company Information” includes, but is not limited to, information regarding the Company’s business
plans and strategies; manuals, contracts and proposals; and other business partners and the Company’s business arrangements and strategies with respect to them; current and future marketing or advertising campaigns; software programs whether
owned or modified by third parties for the Company’s benefit; codes, formulae or techniques; financial information; personnel information; and all ideas, plans, processes or information related to the current, future and proposed projects or
other business of the Company whether or not such information would be enforceable as a trade secret of the Company or enjoined or restrained by a court or arbitrator as constituting unfair competition. “Proprietary Company information”
also includes confidential information of any third party who may disclose such information to the Company or Executive in the course of the Company’s business. 
 11.1 Nondisclosure. Executive acknowledges that Proprietary Company Information constitutes valuable, special and unique assets of the Company’s business and that the unauthorized disclosure of such
information to competitors of the Company, or to the general public, will be highly detrimental to the Company. Executive therefore agrees to hold Proprietary Company Information in strictest confidence. Except as shall occur as and to the extent
that Executive performs his duties to the Company, Executive agrees not to disclose or allow to be disclosed to any individual or entity, other than those individuals or entities authorized by the Company, any Proprietary Company Information that
Executive has or may acquire during Executive’s employment by the Company (whether or not developed or compiled by Executive and whether or not Executive has been authorized to have access to such Proprietary Company Information). 

11.2 Continuing Obligation. Executive agrees that the agreement not to disclose Proprietary Company Information will be effective during
Executive’s employment and continue even after Executive is no longer employed by the Company. Any obligation not to disclose any portion of any Proprietary Company Information will continue indefinitely unless Executive can demonstrate that
such information (a) has been developed independently without any reference to any information obtained during Executive‘s employment with the Company; or (b) must be disclosed in response to a valid order by a court or government
agency or is otherwise required by law. 
 11.3 Return of Company Property. On termination of employment with the Company for whatever
reason, or at the request of the Company before termination, Executive agrees to promptly deliver to the Company all records, files, computer disks, memoranda, documents, lists and other information regarding the Company and its business or
containing any Proprietary Company Information, including all copies, reproductions, summaries or excerpts thereof, then in Executive’s possession or control, whether prepared by Executive or others. Executive also agrees to promptly return, on
termination or the Company’s request, any and all Company property issued to Executive, including but not limited to computers, cellular phones, keys 

  

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and credits cards. Executive further agrees that should Executive discover any Company property or Proprietary Company Information in Executive’s
possession after the return of such property has been requested, Executive agrees to return it promptly to the Company without retaining copies, summaries or excerpts of any kind. 
 11.4 No Violation of Rights of Third Parties. Executive warrants that the performance of all the terms of this Agreement does not and will not
breach any agreement to keep in confidence proprietary information, knowledge or data acquired by Executive prior to Executive’s employment with the Company. Executive agrees not to disclose to the Company, or induce the Company to use, any
confidential or proprietary information or material belonging to any previous employers or others. Executive warrants that Executive is not a party to any other agreement that will interfere with Executive’s full compliance with this Agreement.
Executive further agrees not to enter into any agreement, whether written or oral, in conflict with the provisions of this Agreement while such provisions remain effective. 
 12. Interference with Business Relations. 
 12.1 Interference with Customers, Suppliers and Other Business Partners. Executive acknowledges that the Company’s tenant and customer base and its other business arrangements have been developed through substantial effort and
expense, and its nonpublic business information is confidential and constitutes trade secrets. In addition, because of Executive’s position, Executive understands that the Company will be particularly vulnerable to significant harm from
Executive’s use such information for purposes other than to further the Company’s business interests. Accordingly, Executive agrees that during the Term of this Agreement Executive’s employment with the Company, and for a period of 24
months after Executive’s employment with the Company is terminated for any reason. , Executive will not, either directly or indirectly, separately or in association with others, interfere with, impair, disrupt or damage the Company’s
relationship with any of the customers, automobile dealers or other business partners of the Company with whom Executive has had contact, or conducted business, by contacting them for the purpose of inducing or encouraging any of them to divert or
take away business from the Company. 
 12.2 Interference with the Company’s Employees. Executive acknowledges that the services
provided by the Company’s employees are unique and special, and that the Company’s employees possess trade secrets and Proprietary Company Information that is protected against misappropriation and unauthorized use. As such, Executive
agrees that during the Term of this Agreement, and for a period of 24 months after Executive’s employment with the Company is terminated for any reason. , Executive will not, either directly or indirectly, separately or in association with
others, interfere with, impair, disrupt or damage the Company’s business by contacting any Company employees for the purpose of inducing or encouraging them to discontinue their employment with the Company. 
 12.3 Negative Information. During the Term of Employment and thereafter, Executive shall not disclose confidential or negative non-public
information regarding, or take any action materially detrimental to the reputation of the Company or its directors, officers, employees, investors, shareholders or advisors and any affiliates of any of the foregoing (collectively, the “Company
Affiliates”); provided, however, that nothing contained in this Section 10.3 shall affect any legal obligation of Executive to respond to mandatory governmental inquiries concerning the Company Affiliates or to act in accordance with, or
to establish, his rights under this Agreement. 
 12.4 Injunctive Relief. Executive acknowledges that Executive’s breach of the
covenants contained in Sections 9 through 11 of this Agreement inclusive (collectively “Covenants”) 

  

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would cause irreparable injury and continuing harm to the Company for which there will be no adequate remedy at law, and agrees that in the event of any such
breach, the Company seek temporary, preliminary and permanent injunctive relief to the fullest extent allowed by the California Arbitration Act, without the necessity of proving actual damages or posting any bond or other security. 
 13. Agreement to Arbitrate. Any dispute, controversy or claim arising out of or in respect of this Agreement (or its validity, interpretation or
enforcement), the employment relationship or the subject matter hereof shall be addressed and settled by arbitration conducted in Orange County under the auspices of JAMS or other mutually agreeable alternative dispute resolution service in
accordance with that service’s rules for the resolution of employment disputes. Included within this provision are any claims based on a violation of any local, state or federal law, such as claims for discrimination or civil rights violations.
Executive understands that arbitration is in lieu of any and all other civil legal proceedings. The aggrieved party can initiate arbitration by sending written notice of any intention to arbitrate by registered or certified mail to all parties and
to the mutually agreed upon alternative dispute resolution service. The notice must contain a description of the dispute, the amount involved and the remedy sought. Any claim or controversy which may be arbitrated under this section is subject to
any applicable statute of limitations that would apply if a lawsuit was being initiated. The arbitration shall provide for written discovery and depositions adequate to give the parties access to documents and witnesses that are essential to the
dispute. The arbitrator shall have no authority to add to or to modify this Agreement, shall apply all applicable law, and shall have no lesser and no greater remedial authority than would a court of law resolving the same claim or controversy. In
addition to any other form of relief to which the parties may be entitled, injunctive relief will be available to enforce any provision of this Agreement including, without limitation, Paragraph 7 of this Agreement. The arbitrator shall issue a
written decision that includes the essential findings and conclusions upon which the decision is based, and which shall be signed and dated. The decision of the arbitrator shall be conclusive, final and binding upon the parties and may be submitted
to any authorized court of law to be confirmed and enforced. The prevailing party (meaning the party that obtains substantially the relief sought by it) in such proceeding will be entitled to the reasonable attorneys’ fees and expenses of
counsel and costs incurred by reason of such arbitration if such would be available if the matter had been pursued in a court of law. Executive and the Company shall each bear his/her or its own costs and attorneys’ fees incurred in conducting
the arbitration, and, except for such disputes where Executive asserts a claim otherwise under a state or federal statute prohibiting discrimination in employment or unless otherwise required by applicable law (“a Statutory Claim”), shall
split equally the fees and administrative costs charged by the arbitrator and the alternative dispute resolution service. In disputes where Executive asserts a Statutory Claim against the Company, Executive shall be required to pay only the initial
administrative filing fee to the extent such filing fee does not exceed the fee to file a complaint in state or federal court. The Company shall pay the balance of the arbitrator’s fees and administrative costs. 
 14. General Provisions. 
 14.1
Successors and Assigns. The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the Company. The Company will require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise) or assignee to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that
the Company would be required to perform it if no such succession or assignment had taken place. Executive shall not be entitled to assign any of Executive’s rights or obligations under this Agreement without the Company’s written consent.

  

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 14.2 Legal Protection Clause. The Company will defend, indemnify and hold harmless the Executive
from and against any claim or legal action taken against Executive as a direct consequence of the discharge of Executive’s duties or obedience to directions of the Company, in accordance with California Labor Code 2802. Such protection, if
applicable, includes the cost of legal defense and judgment, if any, against Executive. 
 14.3 Nonexclusivity of Rights. Except as
expressly provided in this Agreement, Executive is not prevented from continuing or future participation in any Company benefit, bonus, incentive or other plans, programs, policies or practices provided by the Company subject to the terms and
conditions of such plans, programs, or practices. 
 14.4 Waiver. Either party’s failure to enforce any provision of this
Agreement shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Agreement. 
 14.5 Attorneys’ Fees. Each side will bear its own attorneys’ fees in any dispute unless a statutory section at issue, if any, authorizes
the award of attorneys’ fees to the prevailing party, and the arbitrator awards such attorneys’ fees accordingly. 
 14.6
Severability. In the event any provision of this Agreement is found to be unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the
provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the
unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby. 
 14.7 Interpretation; Construction. The headings set forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement. This Agreement has been drafted by legal counsel representing the Company, but
Executive has participated in the negotiation of its terms. Furthermore, Executive acknowledges that Executive has had an opportunity to review and revise the Agreement and have it reviewed by legal counsel, if desired, and, therefore, the normal
rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 
 14.8 Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of California. Except as and to the extent that Section 11 does not properly apply, each party
consents to the jurisdiction and venue of the state or federal courts in Los Angeles County, California in any action, suit or proceeding arising out of or relating to this Agreement. 
 14.9 Notices. Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given as
indicated: (a) by personal delivery when delivered personally; (b) by overnight courier upon written verification of receipt; (c) by telecopy or facsimile transmission upon acknowledgment of receipt of electronic transmission; or
(d) by certified or registered mail, return receipt requested, upon verification of receipt. Notice shall be sent to the addresses set forth below, or such other address as either party may specify in writing. 
 14.10 Survival. Section 9 (“Termination of Employment”), Section 10 (”No Competition and No Conflict of
Interest”), Section 11 (“Proprietary Company Information”), Section 12 (“Interference with Business Relations”), Section 13 (“Agreement to Arbitrate”), Section 14 (“General
Provisions”) and Section 15 (“Entire Agreement”) of this Agreement shall survive Executive’s employment with the Company and the Term of this Agreement as provided therein. 
  

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 15. Entire Agreement. This Agreement, together with the other agreements and documents governing
the benefits described in this Agreement constitute the entire agreement between the parties relating to this subject matter hereof and supersedes all prior or simultaneous representations, discussions, negotiations, and agreements, whether written
or oral. This Agreement may be amended or modified only with the written consent of Executive and the Board of Directors of the Company. No oral waiver, amendment or modification will be effective under any circumstances whatsoever. 
 THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS
AGREEMENT ON THE DATES SHOWN BELOW. 
  

					
		 	Stacy M. Friederichsen
		
	Dated: July 30, 2007	 	/s/ Stacy M. Friederichsen
		 	Address: _____________________
		 	                _____________________
		
		 	United Panam Financial Corporation
			
	Dated: July 30, 2007	 	By:	  	 /s/ Ray C. Thousand

		 		  	Ray C. Thousand
		 		  	President and CEO

  

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 EXHIBIT A 
 Executive Cash Compensation Schedule 
 Pursuant to Sections 4.1 and 4.2 of the 
 Executive Employment Agreement 
  

																									
	 	  	Fiscal 2007	  	Fiscal 2008	 	 	Fiscal 2009	 
	 	  	TGT	 	 	Pay	  	TGT	 	 	Pay	  	%vs
LY	 	 	TGT	 	 	Pay	  	%vs
LY	 
	 Stacy Friederichsen
	  			 			  			 			  			 			 			  		
	 Base
	  			 	$	225,000	  			 	$	236,250	  	5	%	 			 	$	248,063	  	5	%
	 Bonus Target at 100%
	  	35	%	 	$	78,750	  	35	%	 	$	82,688	  	5	%	 	35	%	 	$	86,822	  	5	%
	 Total
	  			 	$	303,750	  			 	$	318,938	  	5	%	 			 	$	334,884	  	5	%

 Target Bonus 
 Target for bonus purposes will be approved by the Board each year. For 2007 it is budget pre-tax income normalized for budget interest expense. 
 33.3% of target bonus is payable based upon achievement of agreed initiatives 
 67.7% of target bonus is payable based upon achievement of budget pre-tax income as normalized 
 “Bonus target at 100%” above refers to the % of base salary that is payable at achievement of 100% of target. 
 Target bonus starts to be paid at achievement of 70% of defined target. Bonus % paid increases pro rata up to 100% of target at maximum. 
 Thus for each 1% above 70% of target that is achieved, the executive receives 3.33% of his/her target bonus % of base salary. 
 For example, if 90% of target is achieved, the executive will be paid 20 x 3.33%, or 66.6% of her target bonus. 

 EXHIBIT B 
 Executive Equity Compensation Schedule 
 Pursuant to Section 4.3 of the 
 Executive Employment Agreement 
  

						
	 	 	Fiscal
Year	 	New Grants
Restricted
Stock $
	Stacey Freiderichsen	 	2007	 	$	75,000
		 	2008	 	$	75,000
		 	2009	 	$	75,000

  

							
				
	 	  	Grant Year	  	Grant Date	  	 Grant Pricing

	 Grant Date
	  	2007	  	07/10/07	  	Market price per share as of grant date, but share quantity calculated using 02/01/07 price ($14.36)
		  	2008	  	02/01/08	  	Market as of grant date
		  	2009	  	02/01/09	  	Market as of grant date
				
	 Vesting
	  	All grants	  		  	33.33% end of year three; 33.33% end of year four; 33.33% end of year five.
		  		  		  	NOTE: for vesting purposes the 2007 grant is assumed to start at 02/01/07
				
	 Change of Control Vesting
	  		  		  	100% vest of all restricted stock granted prior to change of control

  

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 EXHIBIT C 
 Severance Compensation Schedule 
 Pursuant to Section 9 
 Executive Employment Agreement 
  

	•	 	 The Severance Payment shall be equal to twelve (12) months salary at the then current base salary, plus the prorated Target Bonus through the date of
termination, calculated on the basis of achievement of 100% of target. 

  

 3Amended and Restated 2005 Stock Option Plan and related agreements

 Exhibit 10.4 
 IMPERIUM RENEWABLES, INC. 
 AMENDED AND RESTATED 2005 STOCK OPTION PLAN 
 1. Purposes of the Plan. The purposes of this Amended and Restated 2005 Stock Option Plan are to attract and retain the best available personnel
for positions of substantial responsibility, to provide additional incentive to Employees and Consultants of the Company and its Subsidiaries and to promote the success of the Company’s business. Options granted under the Plan may be Incentive
Stock Options (as defined under Section 422 of the Code) or Nonstatutory Stock Options, as determined by the Administrator at the time of grant of an Option and subject to the applicable provisions of Section 422 of the Code, as amended,
and the regulations promulgated thereunder. 
 2. Definitions. As used herein, the following definitions shall apply: 
 (a) “Administrator” means the Board or any of its Committees appointed pursuant to Section 4 of the Plan. 
 (b) “Affiliate” means an entity other than a Subsidiary (as defined below) in which the Company owns an equity interest or which,
together with the Company, is under common control of a third person or entity. 
 (c) “Applicable Laws” means the legal
requirements relating to the administration of stock option plans under applicable U.S. state corporate laws, U.S. federal and state securities laws, the Code, any Stock Exchange rules and regulations and the applicable laws of any other country or
jurisdiction where Options are granted under the Plan, as such laws, rules, regulations and requirements shall be in place from time to time. 
 (d) “Board” means the Board of Directors of the Company. 
 (e) “Code” means the Internal Revenue
Code of 1986, as amended. 
 (f) “Committee” means the Committee appointed by the Board of Directors to administer the Plan
in accordance with Section 4 below. 
 (g) “Common Stock” means the Common Stock, no par value, of the Company.

 (h) “Company” means Imperium Renewables, Inc., a Washington corporation. 
 (i) “Consultant” means any person, including an advisor, who renders services to the Company, or any Parent, Subsidiary or Affiliate,
and is compensated for such services, and any director of the Company whether compensated for such services or not. 
 (j)
“Continuous Status as an Employee or Consultant” means the absence of any interruption or termination of service as an Employee or Consultant. Continuous Status as an Employee or Consultant shall not be considered interrupted in the
case of: (i) authorized sick leave; (ii) military leave; (iii) any other leave of absence approved by the Administrator, provided that such leave is for a period of not more than 90 days, unless re-employment upon the expiration of
such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to Company policy adopted from time to time; or (iv) in the case of transfers between locations of the Company or between the Company, its Parent(s),
Affiliates, Subsidiaries or their respective successors. For purposes of this Plan, a change in status from 

  

 1 

 
an Employee to a Consultant or from a Consultant to an Employee will not constitute an interruption of Continuous Status as an Employee or Consultant.

 (k) “Corporate Transaction” means: 
 (i) the acquisition of this Company by another entity by means of merger, consolidation or other transaction or series of related transactions resulting in the exchange of the outstanding shares of this Company for
securities of or consideration issued, or caused to be issued, by the acquiring entity or any of its affiliates, or 
 (ii) the
Company’s sale, lease or other distribution of all or substantially all of its assets; 
 provided, however, that after the Corporate Transaction
the shareholders of the Company immediately prior to the Corporate Transaction own less than a majority of the outstanding voting equity securities of the surviving entity immediately following the Corporate Transaction; provided, further,
that neither (x) a merger effected exclusively for the purpose of changing the domicile of the Company nor (y) an equity financing in which the Company is the surviving company shall be considered a “Corporate Transaction.”

 (l) “Director” means a member of the Board. 
 (m) “Employee” means any person, including officers and Directors, employed by the Company or any Parent, Subsidiary or Affiliate of the
Company, with the status of employment determined based upon such minimum number of hours or periods worked as shall be determined by the Administrator in its discretion, subject to any requirements of the Code. The payment of a director’s fee
to a Director shall not be sufficient to constitute “employment” of such Director by the Company. 
 (n) “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
 (o) “Fair Market Value” means, as of any date, the
fair market value of Common Stock determined as follows: 
 (i) If the Common Stock is listed on a Stock Exchange, its Fair Market Value
shall be the closing sales price for such stock (or the closing bid, if no sales were reported), as quoted on such Stock Exchange, or the exchange with the greatest volume of trading in Common Stock for the last market trading day prior to the time
of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
 (ii) If the
Common Stock is quoted on the Nasdaq System (but not on the National Market thereof) or regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low
asked prices for the Common Stock for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 
 (iii) In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator. 
 (p) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the
meaning of Section 422 of the Code, as designated in the applicable written Option Agreement. 
  

 2 

 (q) “Listed Security” means any security of the Company that is listed or approved for
listing on a Stock Exchange. 
 (r) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive
Stock Option, as designated in the applicable written Option Agreement. 
 (s) “Option” means a stock option granted
pursuant to the Plan. 
 (t) “Option Agreement” means a written agreement between an Optionee and the Company reflecting the
terms of an Option granted under the Plan and includes any documents attached to such Option Agreement, including, but not limited to, a notice of stock option grant and a form of exercise notice. 
 (u) “Option Exchange Program” means a program whereby outstanding Options are exchanged for Options with a lower exercise price.

 (v) “Optioned Stock” means the Common Stock subject to an Option. 
 (w) “Optionee” means an Employee or Consultant who receives an Option. 
 (x) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code,
or any successor provision. 
 (y) “Plan” means this Amended and Restated 2005 Stock Option Plan. 
 (z) “Reporting Person” means an officer, Director, or greater than 10% shareholder of the Company within the meaning of Rule 16a-2 under
the Exchange Act, who is required to file reports pursuant to Rule 16a-3 under the Exchange Act. 
 (aa) “Rule 16b-3” means
Rule 16b-3 promulgated under the Exchange Act, as the same may be amended from time to time, or any successor provision. 
 (bb)
“Share” means a share of the Common Stock, as adjusted in accordance with Section 11 of the Plan. 
 (cc)
“Stock Exchange” means any established stock exchange or a national market system including, without limitation, the National Market of the National Association of Securities Dealers, Inc. Automated Quotation
(“Nasdaq”) System, on which prices for the Common Stock are quoted at any given time. 
 (dd) “Subsidiary”
means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code, or any successor provision. 
 3. Stock Subject to the Plan. Subject to the provisions of Section 11 of the Plan, the maximum aggregate number of Shares that may be sold under the Plan is 1,800,000. The Shares may be authorized, but
unissued, or reacquired Common Stock. If an Option expires or becomes unexercisable for any reason without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, the unpurchased Shares that were subject thereto
shall, unless the Plan shall have been terminated, become available for future grant under the Plan. In addition, any shares of Common Stock that are retained by the Company upon exercise of an Option in order to satisfy the exercise or purchase
price for such Option or any withholding taxes due with respect to such exercise shall be treated as not 

  

 3 

 
issued and shall continue to be available under the Plan. Shares repurchased by the Company pursuant to any repurchase right that the Company may have shall
not be available for future grant under the Plan. 
 4. Administration of the Plan. 
 (a) Initial Plan Procedure. Prior to the date, if any, upon which the Company becomes subject to the Exchange Act, the Plan shall be administered
by the Board or a Committee appointed by the Board. 
 (b) Plan Procedure After the Date, if any, Upon Which the Company Becomes Subject
to the Exchange Act. 
 (i) Multiple Administrative Bodies. If permitted by Rule 16b-3, grants under the Plan may be made by
different bodies with respect to Directors, non-Director officers and Employees or Consultants who are not Reporting Persons. 
 (ii)
Administration With Respect to Reporting Persons. With respect to grants of Options to Employees who are Reporting Persons, such grants shall be made by (A) the Board or (B) a Committee designated by the Board to make grants to
Reporting Persons under the Plan, which Committee shall be constituted in such a manner as to permit grants under the Plan to comply with Rule 16b-3. Once appointed, such Committee shall continue to serve in its designated capacity until
otherwise directed by the Board. From time to time the Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies,
however caused, and remove all members of the Committee and thereafter directly make grants to Reporting Persons under the Plan, all to the extent permitted by Rule 16b-3. 
 (iii) Administration With Respect to Consultants and Other Employees. With respect to grants of Options to Employees or Consultants who are not
Reporting Persons, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws. Once appointed, such Committee shall
continue to serve in its designated capacity until otherwise directed by the Board. From time to time the Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new
members in substitution therefor, fill vacancies, however caused, and remove all members of the Committee and thereafter directly administer the Plan, all to the extent permitted by the Applicable Laws. 
 (c) Powers of the Administrator. Subject to the provisions of the Plan and in the case of a Committee, the specific duties delegated by the Board
to such Committee, and subject to the approval of any relevant authorities, including the approval, if required, of any Stock Exchange, the Administrator shall have the authority, in its discretion: 
 (i) to determine the Fair Market Value of the Common Stock, in accordance with Section 2(o) of the Plan; 
 (ii) to select the Consultants and Employees to whom Options may from time to time be granted hereunder; 
 (iii) to determine whether and to what extent Options are granted hereunder; 
  

 4 

 (iv) to determine the number of shares of Common Stock to be covered by each such Option granted
hereunder; 
 (v) to approve forms of agreement for use under the Plan; 
 (vi) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Option granted hereunder, which terms and conditions
include, but are not limited to, the exercise price, the time or times when Options may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, any provisions for early exercise
subject to a right of repurchase by the Company, and any restriction or limitation regarding any Option or any Optioned Stock, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 
 (vii) to determine whether and under what circumstances an Option may be settled in cash under Section 9(g) instead of Common Stock and to make any
other amendments or adjustments to any Option that the Administrator determines, in its discretion and under the authority granted to it under the Plan, to be necessary or advisable, provided however that no amendment or adjustment to an Option that
would materially and adversely affect the rights of any Optionee shall be made without the prior written consent of the Optionee; 
 (viii)
to reduce the exercise price of any Option to the then-current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option has declined since the date the Option was granted; 
 (ix) to initiate an Option Exchange Program; 
 (x) to construe and interpret the terms of the Plan and Options granted under the Plan; 
 (xi) in order to fulfill the purposes of
the Plan and without amending the Plan, to modify grants of Options to participants who are foreign nationals or employed outside of the United States in order to recognize differences in local law, tax policies or customs; and 
 (xii) at any time at which, and with respect to any individual eligible to be granted a Nonstatutory Stock Option to which, the Administrator is
authorized pursuant to Section 8(a)(ii) to grant a Nonstatutory Stock Option having an exercise price per Share that is no greater than the par value, if any, of a Share, or otherwise having any exercise price determined by the Administrator, the
Administrator may determine, in its discretion and in lieu of the grant of such Option, to grant to such individual the right to purchase directly, and without the intervening grant of an Option, such number of Shares for such price as the
Administrator shall determine; and, if so determined by the Administrator and permitted by Applicable Laws, such purchase price may be nil, in which case such award shall be characterized as the grant of Shares in consideration for services rendered
to the Company or for its benefit. Shares granted or sold directly in accordance with this subsection shall be subject to such restrictions on transfer, which shall lapse over such period(s) of time and/or upon the satisfaction of such continued
service and/or performance criteria as the Administrator shall determine, and shall be subject to such other terms and conditions as the Administrator shall determine, in its discretion. The Company shall withhold with respect to such awards all
applicable taxes substantially in the manner provided by Section 10 or as otherwise required by Applicable Laws. The terms and conditions of awards granted pursuant to this subsection shall be set forth in a written agreement between the individual
granted such award and the Company, and such agreement may be described as a stock purchase, restricted stock purchase, stock grant, restricted stock grant, or other agreement, as applicable. 
 (d) Effect of Administrator’s Decision. All decisions, determinations and interpretations of the Administrator shall be final and binding on
all holders of Options. 
 5. Eligibility. 
 (a) Recipients of Grants. Nonstatutory Stock Options may be granted to Employees and Consultants. Incentive Stock Options may be granted only to Employees; provided however that Employees of Affiliates shall
not be eligible to receive Incentive Stock Options. An Employee or Consultant who has been granted an Option may, if he or she is otherwise eligible, be granted additional Options. 
 (b) Type of Option. Each Option shall be designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.
However, notwithstanding such designations, to the extent that the aggregate Fair Market Value of Shares with respect to which Options designated as Incentive Stock Options are exercisable for the first time by any Optionee during any calendar year
(under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 5(b), Incentive Stock Options shall be taken into account in the
order in which they were granted, and the Fair 

  

 5 

 
Market Value of the Shares subject to an Incentive Stock Option shall be determined as of the date of the grant of such Option. 
 (c) At-Will Relationship. The Plan shall not confer upon any Optionee any right with respect to continuation of employment or consulting
relationship with the Company, nor shall it interfere in any way with such Optionee’s right or the Company’s right to terminate his or her employment or consulting relationship at any time, with or without cause. 
 6. Term of Plan. The Plan shall become effective upon its adoption by the Board. It shall continue in effect for a term of ten years unless sooner
terminated under Section 14 of the Plan. 
 7. Maximum Term of Option. The maximum term of each Option shall be the term stated
in the Option Agreement; provided, however, that the maximum term shall be no more than ten years from the date of grant thereof or such shorter term as may be provided in the Option Agreement. However, in the case of an Incentive Stock Option
granted to an Optionee who, at the time the Option is granted, owns stock representing more than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the maximum term of the Option shall be five
years from the date of grant thereof or such shorter term as may be provided in the Option Agreement. 
 8. Option Exercise Price and
Consideration. 
 (a) The per Share exercise price for the Shares to be issued pursuant to exercise of an Option shall be such price as is
determined by the Board and set forth in the applicable Option Agreement, but shall be subject to the following: 
 (i) In the case of an
Incentive Stock Option that is: 
 (A) granted to an Employee who, at the time of the grant of such Incentive Stock Option, owns stock
representing more than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant.

 (B) granted to any other Employee, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date
of grant. 
 (ii) In the case of a Nonstatutory Stock Option that is: 
 (A) granted prior to the date, if any, on which any of the Company’s securities becomes a Listed Security, to a person who is at the time of grant
is a Ten Percent Holder, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant if required by the Applicable Laws and, if not so required, shall be such price as is determined by the
Administrator; 
 (B) granted prior to the date, if any, on which any of the Company’s securities becomes a Listed Security, to any
other eligible person, the per Share exercise price shall be no less than 85% of the Fair Market Value per Share on the date of grant if required by the Applicable Laws and, if not so required, shall be such price as is determined by the
Administrator. 
 (C) granted on or after the date, if any, on which any of the Company’s securities becomes a Listed Security, to any
eligible person, the per share exercise price shall be such price as determined by the Administrator provided that if such eligible person is, at the time of the 

  

 6 

 
grant of such Option, a “covered employee” (as such term is defined in Section 162(m) of the Code) of the Company, the per share exercise
price shall be no less than 100% of the Fair Market Value on the date of grant if such Option is intended to qualify as performance-based compensation under Section 162(m) of the Code. 
 (iii) Notwithstanding the foregoing, Options may be granted with a per Share exercise price other than as required above pursuant to a Corporate
Transaction. 
 (b) The exercise price for Shares to be issued upon exercise of an Option shall be paid in full to the Company by delivery of
consideration equal to the product of the Option exercise price and the number of Shares purchased. Such consideration must be paid in cash or by check, or, in the sole discretion of the Administrator, by the following alternative forms of payment:
(1) a full-recourse promissory note, (2) cancellation of indebtedness, (3) other Shares that (x) in the case of Shares acquired upon exercise of an Option, have been owned by the Optionee for more than six months on the date of
surrender or such other period as may be required to avoid a charge to the Company’s earnings, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option shall be
exercised, (4) authorization for the Company to retain from the total number of Shares as to which the Option is exercised that number of Shares having a Fair Market Value on the date of exercise equal to the exercise price for the total number
of Shares as to which the Option is exercised, (5) delivery of a properly executed exercise notice together with such other documentation as the Administrator and the broker, if applicable, shall require to effect an exercise of the Option and
delivery to the Company of the sale or loan proceeds required to pay the exercise price and any applicable income or employment taxes, (6) delivery of an irrevocable subscription agreement for the Shares that irrevocably obligates the Optionee
to take and pay for the Shares not more than twelve months after the date of delivery of the subscription agreement, (7) any combination of the foregoing methods of payment, or (8) such other consideration and method of payment for the
issuance of Shares to the extent permitted under the Applicable Laws and approved by the Administrator, in its sole discretion. In making its determination as to the type of consideration to accept, the Administrator shall consider if acceptance of
such consideration may be reasonably expected to benefit the Company and if it is permitted under Applicable Laws and/or advisable under generally accepted accounting principles. 
 9. Exercise of Option. 
 (a)
Procedure for Exercise; Rights as a Shareholder. Any Option granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator and reflected in the Option Agreement, which may include vesting
requirements and/or performance criteria with respect to the Company and/or the Optionee. 
 No portion of any vested Option may be exercised
for less 100 Shares (as adjusted pursuant to Section 11(a)); provided, however that if the vested Option is for less than 100 Shares, it may be exercised with respect to all Shares for which it is vested. An Option may not be exercised for a
fraction of a Share. 
 An Option shall be deemed exercised when written notice of such exercise has been given to the Company in accordance
with the terms of the Option by the person entitled to exercise the Option and the Company has received full payment for the Shares with respect to which the Option is exercised. Subject to authorization by the Administrator, in its sole discretion,
full payment may consist of any consideration and method of payment allowable under Section 8(b) of the Plan. As a condition to exercise, the Administrator may require the Optionee to execute and deliver an appropriate stock purchase agreement,
which may include, without limitation, certain restrictions on the transferability of the shares. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized 

  

 7 

 
transfer agent of the Company) of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder
shall exist with respect to the Optioned Stock, not withstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly upon exercise of the Option. No adjustment will be made for a dividend or
other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 11 of the Plan. 
 Exercise of an Option in any manner shall result in a decrease in the number of Shares that thereafter may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is
exercised. 
 (b) Termination of Employment or Consulting Relationship. Subject to Sections 9(c) and 9(d) below, in the event of
termination of an Optionee’s Continuous Status as an Employee or Consultant with the Company, such Optionee may, but only within three months (or such other period of time not less than 30 days as is determined by the Administrator, with such
determination in the case of an Incentive Stock Option being made at the time of grant of the Option and not exceeding three months) after the date of such termination (but in no event later than the expiration date of the term of such Option as set
forth in the Option Agreement), exercise his or her Option to the extent that the Optionee was entitled to exercise it at the date of such termination; provided, however that if such termination is for cause (as determined in the sole
discretion of the Administrator), any vested Option may be exercised no later than the date of such termination. To the extent that the Optionee was not entitled to exercise the Option at the date of such termination, or if the Optionee does not
exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate and the Optioned Stock underlying the unexercised portion of the Option shall revert to the Plan. No termination shall be deemed to occur and
this Section 9(b) shall not apply if (i) the Optionee is a Consultant who becomes an Employee, or (ii) the Optionee is an Employee who becomes a Consultant. 
 (c) Disability of Optionee. Notwithstanding Section 9(b) above, in the event of termination of an Optionee’s Continuous Status as an
Employee or Consultant as a result of his or her total and permanent disability (within the meaning of Section 22(e)(3) of the Code), such Optionee may, but only within twelve months from the date of such termination (but in no event later than
the expiration date of the term of such Option as set forth in the Option Agreement), exercise the Option to the extent otherwise entitled to exercise it at the date of such termination. To the extent that the Optionee was not entitled to exercise
the Option at the date of termination, or if the Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate and the Optioned Stock underlying the unexercised portion of the Option
shall revert to the Plan. 
 (d) Death of Optionee. In the event of the death of an Optionee during the period of Continuous Status as
an Employee or Consultant since the date of grant of the Option, or within 30 days following termination of the Optionee’s Continuous Status as an Employee or Consultant, the Option may be exercised, at any time within twelve months following
the date of death (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), by such Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or
inheritance, but only to the extent of the right to exercise that had accrued at the date of death or, if earlier, the date of termination of the Optionee’s Continuous Status as an Employee or Consultant. To the extent that the Optionee was not
entitled to exercise the Option at the date of death or termination, as the case may be, or if the Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate and the Optioned Stock
underlying the unexercised portion of the Option shall revert to the Plan. 
  

 8 

 (e) Extension of Exercise Period. The Administrator shall have full power and authority to extend
the period of time for which an Option is to remain exercisable following termination of an Optionee’s Continuous Status as an Employee or Consultant from the periods set forth in Sections 9(b), 9(c) and 9(d) above or in the Option
Agreement to such greater time as the Board shall deem appropriate, provided, that in no event shall such option be exercisable later than the date of expiration of the term of such Option as set forth in the Option Agreement. 
 (f) Rule 16b-3. Options granted to Reporting Persons shall comply with Rule 16b-3 and shall contain such additional conditions or restrictions as
may be required thereunder to qualify for the maximum exemption for Plan transactions. 
 (g) Buy-Out Provisions. The Administrator
may at any time offer to buy out for a payment in cash or Shares an Option previously granted, based on such terms and conditions as the Administrator shall establish and communicate to the Optionee at the time such offer is made. 
 10. Taxes. 
 (a) As a condition of the
exercise of an Option granted under the Plan, the Optionee (or in the case of the Optionee’s death, the person exercising the Option) shall make such arrangements as the Administrator may require for the satisfaction of any applicable federal,
state, local or foreign withholding tax obligations that may arise in connection with the exercise of the Option and the issuance of Shares. The Company shall not be required to issue any Shares under the Plan until such obligations are satisfied.
If the Administrator allows the withholding or surrender of Shares to satisfy an Optionee’s tax withholding obligations under this Section 10 (whether pursuant to Section 10(c), (d) or (e), or otherwise), the Administrator shall
not allow Shares to be withheld in an amount that exceeds the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes. 
 (b) In the case of an Employee and in the absence of any other arrangement, the Employee shall be deemed to have directed the Company to withhold or collect from his or her compensation an amount sufficient to satisfy
such tax obligations from the next payroll payment otherwise payable after the date of an exercise of the Option. 
 (c) This
Section 10(c) shall apply only after the date, if any, upon which any of the Company’s securities becomes a Listed Security. In the case of an Optionee other than an Employee (or in the case of an Employee where the next payroll payment is
not sufficient to satisfy such tax obligations, with respect to any remaining tax obligations), in the absence of any other arrangement and to the extent permitted under the Applicable Laws, the Optionee shall be deemed to have elected to have the
Company withhold from the Shares to be issued upon exercise of the Option that number of Shares having a Fair Market Value determined as of the applicable Tax Date (as defined below) equal to the amount required to be withheld. For purposes of this
Section 10, the Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined under the Applicable Laws (the “Tax Date”). 
 (d) If permitted by the Administrator, in its discretion, an Optionee may satisfy his or her tax withholding obligations upon exercise of an Option by
surrendering to the Company Shares that have a Fair Market Value determined as of the applicable Tax Date equal to the amount required to be withheld. In the case of shares previously acquired from the Company that are surrendered under this
Section 10(d), such Shares must have been owned by the Optionee for more than six (6) months on the date of surrender (or such other period of time as is required for the Company to avoid adverse accounting charges). 
  

 9 

 (e) Any election or deemed election by an Optionee to have Shares withheld to satisfy tax withholding
obligations under Section 10(c) or (d) above shall be irrevocable as to the particular Shares as to which the election is made and shall be subject to the consent or disapproval of the Administrator. Any election by a Optionee under
Section 10(d) above must be made on or prior to the applicable Tax Date. 
 (f) In the event an election to have Shares withheld is made
by an Optionee and the Tax Date is deferred under Section 83 of the Code because no election is filed under Section 83(b) of the Code, the Optionee shall receive the full number of Shares with respect to which the Option is exercised but
such Optionee shall be unconditionally obligated to tender back to the Company the proper number of Shares on the Tax Date. 
 11.
Adjustments Upon Changes in Capitalization or Corporate Transactions. 
 (a) Changes in Capitalization. 
 (i) Subject to any required action by the shareholders of the Company, the number of shares of Common Stock covered by each outstanding Option, and the
number of shares of Common Stock that have been authorized for issuance under the Plan but as to which no Options have yet been granted or that have been returned to the Plan upon cancellation or expiration of an Option, as well as the price per
share of Common Stock covered by each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend,
combination, recapitalization or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” 
 (ii) In the event that the Common Stock is exchanged for other stock of the Company (the “New Stock”), each Option shall thereafter give the holder the right to purchase (subject to the vesting schedule and other terms of
the Option), in lieu of the Common Stock issuable upon exercise of the Option, that number of shares of New Stock equal to the number of shares of New Stock that a holder of the Common Stock issuable upon exercise of the Option immediately prior to
such exchange would have received upon such exchange had they held such Common Stock immediately prior to such exchange (with the exercise price of the Option being proportionately adjusted so as to preserve the aggregate exercise price of the
Option). 
 (iii) The adjustment referred to in this Section 11(a) shall be made by the Administrator, whose determination in that
respect shall be final, binding and conclusive. With respect to the foregoing adjustments, the number of shares subject to an Option shall always be a whole number. The Administrator may, if deemed appropriate, provide for a cash payment to any
Optionee in connection with any such adjustment. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option. 
 (b) Dissolution or
Liquidation. In the event of the proposed dissolution or liquidation of the Company, other than as provided for in a transaction contemplated in Section 11(c), the Option will terminate immediately prior to the consummation of such proposed
action, unless otherwise provided by the Administrator. In such instances the Administrator may, in the exercise of its sole discretion, declare that any Option shall terminate as of a date fixed by the Administrator and give 

  

 10 

 
Optionees the right to exercise their Options as to all of the Optioned Stock, including Shares as to which the Option would not otherwise be exercisable.

 (c) Corporate Transactions. 
 (i) In the event of a Corporate Transaction, the exercisability of each outstanding Option shall automatically be accelerated completely so that one hundred percent (100%) of the number of shares of Common Stock covered by such Option
shall be fully vested immediately prior to the consummation of the Corporate Transaction. 
 (ii) Notwithstanding the foregoing, except as
otherwise provided in the Option Agreement evidencing the Option, the vesting of each outstanding Option shall not be accelerated prior to the consummation of the Corporate Transaction if and to the extent: (A) such Option is either to
be assumed by the successor corporation (or parent thereof) at the consummation of the Corporate Transaction or be replaced with a comparable option to purchase shares of the capital stock of the successor corporation (or parent thereof) at the
consummation of the Corporate Transaction, (B) such Option is to be replaced by a comparable cash incentive program of the successor corporation based on the value of the Option at the time of the consummation of the Corporate Transaction or
(C) the acceleration of such Option is subject to other limitations imposed by the Administrator at the time of the Option Grant. The determination of option comparability shall be made by the Board, and its determination shall be conclusive
and binding. 
 (iii) Immediately following the consummation of the Corporate Transaction, all outstanding Options shall terminate and cease
to be outstanding, except to the extent assumed by the successor corporation (or parent thereof). 
 (d) Certain Distributions. In the
event of any distribution to the Company’s shareholders of securities of any other entity or other assets (other than dividends payable in cash or stock of the Company) without receipt of consideration by the Company, the Administrator may, in
its sole discretion, appropriately adjust the price per Share of Common Stock covered by each outstanding Option to reflect the effect of such distribution. 
 (e) No Limitation on Corporate Actions. The grant of Options shall in no way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
 12. Non-Transferability of Options.
Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised or purchased during the lifetime of the Optionee only by the
Optionee. The designation of a beneficiary by an Optionee will not constitute a transfer. An Option may be exercised, during the lifetime of the Optionee, only by the Optionee or a transferee permitted by this Section 12. 
 13. Time of Granting Options. The date of grant of an Option shall, for all purposes, be the date on which the Administrator makes the
determination granting such Option, or such other date as is determined by the Board; provided, however, that in the case of any Incentive Stock Option, the grant date shall be the later of the date on which the Administrator makes the
determination granting such Incentive Stock Option or the date of commencement of the Optionee’s employment relationship with the Company. Notice of the determination shall be given to each Employee or Consultant to whom an Option is so granted
within a reasonable time after the date of such grant. 
  

 11 

 14. Amendment and Termination of the Plan. The Board may at any time amend, alter, suspend or
discontinue the Plan, but no amendment, alteration, suspension or discontinuation shall be made that would materially and adversely affect the rights of any Optionee under any outstanding grant, without his or her consent. The Board may condition
the effectiveness of any such amendment on the receipt of shareholder approval at such time and in such manner as the Committee may consider necessary for the Company to comply with or to avail the Company, the Optionees or both of the benefits of
any securities, tax, market listing or other administrative or regulatory requirement which the Board determines to be desirable. 
 15.
Conditions Upon Issuance of Shares. Notwithstanding any other provision of the Plan or any agreement entered into by the Company pursuant to the Plan, the Company shall not be obligated, and shall have no liability for, failure to issue or
deliver any Shares under the Plan unless the Company, in its sole discretion and in consultation with its legal counsel, is satisfied that such issuance or delivery would comply with the Applicable Laws. 
 As a condition to the exercise of an Option, the Company may require the person exercising such Option to make such representations and warranties at the
time of any such exercise that counsel for the Company deems necessary and appropriate, including but not limited to representations and warranties that the Shares are being purchased only for investment and without any present intention to sell or
distribute such Shares. 
 16. Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep
available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
 17. Option Agreements. Options
shall be evidenced by Option Agreements in such form(s) as the Administrator shall approve from time to time. 
 18. Shareholder
Approval. Continuance of the Plan shall be subject to approval by the shareholders of the Company within twelve months before or after the date the Plan is adopted, if required by the Applicable Laws. Such shareholder approval shall be obtained
in the degree and manner required under the Applicable Laws. To the extent shareholder approval is required by the Applicable Laws and not obtained, all Options issued under the Plan shall become void. 
 19. Application of Funds. The proceeds received by the Company from the sale of Common Stock issued upon the exercise of Options shall be used for
general corporate purposes, unless otherwise directed by the Board. 
 20. Indemnification of Committee Members. In addition to all
other rights of indemnification they may have by virtue of being a member of the Board or an executive officer of the Company, Committee members shall be indemnified by the Company for all reasonable expenses and liabilities of any type or nature,
including attorneys’ fees, incurred in connection with any action, suit or proceeding to which they or any of them are a party by reason of, or in connection with, the Plan or any Option granted under the Plan, and against all amounts paid by
them in settlement thereof (provided that such settlement is approved by independent legal counsel selected by the Company), except to the extent that such expenses relate to matters for which it is adjudged that such Committee member is liable for
willful misconduct; provided, however, that within fifteen (15) days after the institution of any such action, suit or proceeding, the Committee Member involved therein shall, in writing, notify the Company of such action, suit or
proceeding, so that the Company may have the opportunity to make appropriate arrangements to prosecute or defend the same. 
  

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 21. Separability. With respect to Incentive Stock Options, if the Plan does not contain any
provision required to be included herein under Section 422 of the Code, such provision shall be deemed to be incorporated herein with the same force and effect as if such provision had been set out in full herein; provided, however, that
to the extent any Option that is intended to qualify as an Incentive Stock Option cannot so qualify, the Option, to that extent, shall be deemed to be a Nonstatutory Stock Option for all purposes of the Plan. 
 22. Non-Exclusivity of the Plan. Neither the adoption of the Plan by the Board nor the submission of the Plan to the shareholders of the Company
for approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options and the awarding of stock and
cash otherwise than pursuant to the Plan, and such arrangements may be either generally applicable or applicable only in specific cases. 
 23. Exclusion from Pension and Profit-Sharing Computation. By acceptance of an Option, unless otherwise provided in the Agreement evidencing the Option, the Optionee with respect to such Option shall be deemed to have agreed that the
Option is special incentive compensation that will not be taken into account, in any manner, as salary, compensation or bonus in determining the amount of any payment or other benefit under any pension, retirement or other employee benefit plan,
program or policy of the Company or any of its affiliates. 
  

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 IMPERIUM RENEWABLES, INC. 
 AMENDED AND RESTATED 2005 STOCK OPTION PLAN 
 PLAN HISTORY 
  

			
	June 9, 2005	  	Board adopts the 2005 Stock Option Plan, with an initial reserve of 1,800,000 shares.
		
	June 10, 2005	  	Shareholders approve the 2005 Stock Option Plan, with an initial reserve of 1,800,000 shares.
		
	December 20, 2005	  	Board and Shareholders approve increase in initial reserve by 576,228 for a new reserve of 2,376,228 shares.
		
	October 13, 2006	  	Board and Shareholders approve increase of 1,908,209 for new reserve of 4,284,437 shares.
		
	August 3, 2007	  	Board amended and restated the 2005 Stock Option to add a new subsection (xii) to Section 4(c) and change all Seattle Biofuels, Inc. references to Imperium Renewables, Inc.

 IMPERIUM RENEWABLES, INC. 
 AMENDED AND RESTATED 2005 STOCK OPTION PLAN 
 STOCK OPTION AGREEMENT

 1. Grant of Option. Imperium Renewables, Inc., a Washington corporation (the “Company”), hereby grants to Optionee an
option (the “Option”) to purchase a total number of shares of Common Stock (the “Shares”) set forth in the Notice of Stock Option Grant, at the exercise price per share set forth in the Notice of Stock Option Grant (the
“Exercise Price”) subject to the terms, definitions and provisions of the Company’s Amended and Restated 2005 Stock Option Plan (the “Plan”) adopted by the Company, which is incorporated herein by reference. Unless otherwise
defined herein, the terms defined in the Plan shall have the same defined meanings in this Option. 
 If designated an Incentive Stock
Option, this Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code. 
 2. Exercise of
Option. This Option shall be exercisable during its Term in accordance with the Vesting Schedule set out in the Notice of Stock Option Grant and with the provisions of Section 9 of the Plan as follows: 
 (a) Right to Exercise. 
 (i) No
portion of this Option may be exercised for less than 100 Shares (as adjusted pursuant to Section 11(a) of the Plan); provided, however that if the vested Option is for less than 100 Shares, it may be exercised with respect to all Shares for
which it is vested. This Option may not be exercised for a fraction of a Share. 
 (ii) In the event of Optionee’s death, disability or
other termination of employment or consulting relationship, the exercisability of the Option is governed by Sections 5, 6 and 7 below, subject to the limitation contained in Section 2(a)(iii) below. 
 (iii) In no event may this Option be exercised after the Expiration Date of this Option as set forth in the Notice of Stock Option Grant. 
 (b) Method of Exercise. This Option shall be exercisable by execution and delivery of (i) the Exercise Notice attached hereto as Exhibit
A or of any other form of written notice approved for such purpose by the Company which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised, and such other representations and
agreements as to the holder’s investment intent with respect to such Shares as may be required by the Company pursuant to the provisions of the Plan and (ii) a Shareholders’ Agreement in the form provided by the Company, if not
previously executed and delivered by the Optionee. Such written notice shall be signed by Optionee and shall be delivered in person or by certified mail to the Secretary of the Company or his designee. The written notice shall be accompanied by
payment of the Exercise Price. This Option shall be deemed to be exercised upon receipt by the Company of such written notice accompanied by the Exercise Price. 
 No Shares will be issued pursuant to the exercise of an Option unless such issuance and such exercise shall comply with all relevant provisions of applicable law and the requirements of any Stock Exchange upon which
the Shares may then be listed. Assuming such compliance, for income tax 

  

 1 

 
purposes the Shares shall be considered transferred to Optionee on the date on which the Option is exercised with respect to such Shares. 
 3. Method of Payment. Payment of the Exercise Price shall be by cash or check or, if an alternative form(s) of consideration described in
Section 8(b) of the Plan is approved by the Administrator, in its sole discretion, one of such methods of payment, or any approved combination of such methods of payment (including cash or check), at the election of Optionee. 
 4. Restrictions on Exercise. This Option may not be exercised (a) until such time as the Plan has been approved by the shareholders of the
Company, or (b) if the issuance of such Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation of any applicable federal or state securities or other law or regulation. As a condition to
the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation. 
 5. Termination of Relationship. In the event of termination of Optionee’s Continuous Status as an Employee or Consultant, Optionee may, to
the extent otherwise so entitled at the date of such termination (the “Termination Date”), exercise this Option during the Termination Period set forth in the Notice of Stock Option Grant. To the extent that Optionee was not entitled to
exercise this Option at such Termination Date, or if Optionee does not exercise this Option within the Termination Period, the Option shall terminate. 
 6. Disability of Optionee. Notwithstanding the provisions of Section 5 above, in the event of termination of Continuous Status as an Employee or Consultant as a result of Optionee’s total and
permanent disability (within the meaning of Section 22(e)(3) of the Code), Optionee may, but only within twelve (12) months from the Termination Date (but in no event later than the Expiration Date set forth in the Notice of Stock Option
Grant and in Section 9 below), exercise this Option to the extent Optionee was entitled to exercise it as of such Termination Date. To the extent that Optionee was not entitled to exercise the Option as of the Termination Date, or if Optionee
does not exercise such Option (to the extent so entitled) within the time specified in this Section 6, the Option shall terminate. 
 7.
Death of Optionee. In the event of the death of Optionee (a) during the Term of this Option and while an Employee or Consultant of the Company and having been in Continuous Status as an Employee or Consultant since the date of grant of
the Option, or (b) within thirty (30) days after Optionee’s Termination Date, the Option may be exercised at any time within twelve (12) months following the date of death (but in no event later than the Expiration Date set forth
in the Notice of Stock Option Grant and in Section 9 below), by Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that had accrued at
date or death or, if earlier, the Termination Date. 
 8. Non-Transferability of Option. This Option may not be transferred in any
manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by him or her. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and
assigns of Optionee. 
 9. Term of Option. This Option may be exercised only within the Term set forth in the Notice of Stock Option
Grant, subject to the limitations set forth in Section 7 of the Plan. 
 10. Withholding Tax Obligations. As a condition to the
exercise of this Option and as further set forth in Section 10 of the Plan, Optionee agrees to make adequate provision for federal, state or 

  

 2 

 
other tax withholding obligations, if any, which arise upon the vesting or exercise of the Option, or disposition of the Shares, whether by withholding,
direct payment to the Company, or otherwise. 
 11. Market Standoff Agreement. In connection with the initial public offering of the
Company’s securities and upon request of the Company or the underwriters managing any underwritten offering of the Company’s securities, Optionee hereby agrees not to sell, make any short sale of, loan, grant any option for the purchase
of, or otherwise dispose of any Shares (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed 180 days) from the effective
date of such registration as may be requested by the Company or such managing underwriters and to execute an agreement reflecting the foregoing as may be requested by the underwriters at the time of the Company’s initial public offering.

 12. Adjustment to Shares. The Shares subject hereto may be adjusted in the event of certain changes in the capitalization structure
of the company or for any other reason required or permitted by the Plan. 
 13. No Rights as a Shareholder. Optionee acknowledges
that until the issuance of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option.

  

 3 

 EXHIBIT A 
 IMPERIUM RENEWABLES, INC. 
 AMENDED AND RESTATED 2005 STOCK OPTION PLAN 
 EXERCISE NOTICE 
 This Agreement
(“Agreement”) is made as of                     , by and between Imperium Renewables, Inc., a Washington corporation (the
“Company”), and
                                        
         (“Purchaser”). To the extent any capitalized terms used in this Agreement are not defined, they shall have the meaning ascribed to them in the Amended and Restated 2005 Stock Option Plan
(the “Plan”). 
 1. Exercise of Option. Subject to the terms and conditions hereof, Purchaser hereby elects to exercise his
or her option to purchase              shares of the Common Stock (the “Shares”) of the Company under and pursuant to the Plan and the Stock Option Agreement dated
                                , (the “Option Agreement”). The purchase
price for the Shares shall be $             per Share for a total purchase price of $            . The term
“Shares” refers to the purchased Shares and all securities received in replacement of the Shares or as stock dividends, splits or reverse splits, all securities received in replacement of the Shares in a recapitalization, merger,
reorganization, exchange or the like, and all new, substituted or additional securities or other properties to which Purchaser is entitled by reason of Purchaser’s ownership of the Shares. 
 2. Time and Place of Exercise. The purchase and sale of the Shares under this Agreement shall occur at the principal office of the Company
simultaneously with the execution and delivery of this Agreement in accordance with the provisions of Section 2(b) of the Option Agreement. On such date, the Company will deliver to Purchaser a certificate representing the Shares to be
purchased by Purchaser (which shall be issued in Purchaser’s name) against payment of the Exercise Price therefor by Purchaser by cash or check (or other method or combination of methods of payment as permitted under the Plan and approved by
the Administrator, in its sole discretion). 
 3. Investment and Taxation Representations. In connection with the purchase of the
Shares, Purchaser represents to the Company the following: 
 (a) Purchaser is aware of the Company’s business affairs and financial
condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Shares. Purchaser is purchasing these securities for investment for his or her own account only and not with a view
to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act. Purchaser does not have any present intention to transfer the Shares to any person or entity. 
 (b) Purchaser understands that the Shares have not been registered under the Securities Act by reason of a specific exemption therefrom, which exemption
depends upon, among other things, the bona fide nature of Purchaser’s investment intent as expressed herein. 
 (c) Purchaser further
acknowledges and understands that the securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Purchaser further acknowledges and understands that the
Company is under no obligation to register the securities. Purchaser understands that the certificate(s) evidencing the securities 

  

 A-1 

 
will be imprinted with a legend which prohibits the transfer of the securities unless they are registered or such registration is not required in the opinion
of counsel for the Company. 
 (d) Purchaser is familiar with the provisions of Rules 144 and 701, each promulgated under the Securities Act,
which, in substance, permit limited public resale of “restricted securities” acquired, directly or indirectly, from the issuer of the securities (or from an affiliate of such issuer), in a non-public offering subject to the satisfaction of
certain conditions. Purchaser understands that the Company provides no assurances as to whether he or she will be able to resell any or all of the Shares pursuant to Rule 144 or Rule 701, which rules require, among other things, that the Company be
subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, that resales of securities take place only after the holder of the Shares has held the Shares for certain specified time periods, and under certain
circumstances, that resales of securities be limited in volume and take place only pursuant to brokered transactions. Notwithstanding this paragraph (d), Purchaser acknowledges and agrees to the restrictions set forth in paragraph (e) below.

 (e) Purchaser understands that Purchaser may suffer adverse tax consequences as a result of Purchaser’s purchase or disposition of
the Shares. Purchaser represents that Purchaser has consulted any tax consultants Purchaser deems advisable in connection with the purchase or disposition of the Shares and that Purchaser is not relying on the Company for any tax advice. 

4. Restrictive Legends and Stop-Transfer Orders. 
 (a) Legends. The certificate or certificates representing the Shares shall bear the following legend (as well as any legends required by applicable state and federal corporate and securities laws): 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS. 
 (b) Stop-Transfer
Notices. Purchaser agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers
its own securities, it may make appropriate notations to the same effect in its own records. 
 (c) Refusal to Transfer. The Company
shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or
pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred. 
 5. No Employment Rights.
Nothing in this Agreement shall affect in any manner whatsoever the right or power of the Company, or a Parent or Subsidiary of the Company, to terminate Purchaser’s employment or consulting relationship, for any reason, with or without cause.

 6. Market Stand-off Agreement. In connection with the initial public offering of the Company’s securities and upon request of
the Company or the underwriters managing any underwritten 

  

 A-2 

 
offering of the Company’s securities, Purchaser agrees not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise
dispose of any Shares (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed 180 days) from the effective date of such
registration as may be requested by the Company or such managing underwriters and to execute an agreement reflecting the foregoing as may be requested by the underwriters at the time of the Company’s initial public offering. 
 7. Miscellaneous. 
 (a) Governing
Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Washington, without giving effect to
principles of conflicts of law. 
 (b) Entire Agreement; Enforcement of Rights. This Agreement sets forth the entire agreement and
understanding of the parties relating to the subject matter herein and merges all prior discussions between them. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in
writing signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party. 
 (c) Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate
such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement
shall be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms. 
 (d) Construction. This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be
the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto. 
 (e)
Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient when delivered personally or sent by telegram or fax or forty-eight (48) hours after being deposited in the U.S. mail, as
certified or registered mail, with postage prepaid, and addressed to the party to be notified at such party’s address as set forth below or as subsequently modified by written notice. 
 (f) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together
shall constitute one instrument. 
 (g) Successors and Assigns. The rights and benefits of this Agreement shall inure to the benefit
of, and be enforceable by the Company’s successors and assigns. The rights and obligations of Purchaser under this Agreement may only be assigned with the prior written consent of the Company. 
 (h) State Securities Laws. THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE DEPARTMENT OF
FINANCIAL INSTITUTIONS, DEPARTMENT OF SECURITIES, OF THE STATE OF WASHINGTON OR ANY OTHER STATE, AND THE ISSUANCE OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO THE 

  

 A-3 

 
QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM QUALIFICATION UNDER THE SECURITIES LAWS OF THE STATE OF WASHINGTON OR SUCH OTHER
STATES. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT. 
  

 A-4

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