Document:

Letter Agreement

 Exhibit 10.4 
 January 31, 2006 
 Alesco Financial Trust 
 1818 Market Street, 28th Floor 
 Philadelphia, PA 19103 
 Attn: James J. McEntee, III, President and Chief
Executive Officer 
  

			
	 Re:
	  	Alesco Financial Trust

 Dear Mr. McEntee: 
 Reference is made to that certain Management Agreement, dated as of January 31, 2006, (the “Management Agreement”) by and between Alesco Financial
Trust (the “Company”) and Cohen Brothers Management, LLC (the “Manager”), a wholly owned subsidiary of Cohen Brothers, LLC (“Cohen Bros.”). During the Initial Term and any Renewal Term of the Management
Agreement, the undersigned hereby agree as follows: 
  

	 	(1)	Except as provided in the next paragraph, Cohen Bros., on behalf of itself and its subsidiaries, including the Manager, hereby agrees that the Company shall have the right, before
any other person, to (a) purchase the equity interests in CDOs collateralized by U.S. dollar denominated TruPS issued by banks, bank holding companies and insurance companies for which Cohen Bros. or its affiliates will serve as collateral
manager, in which event the Company shall have a priority right to fund the origination, through its warehouse facilities, of U.S. dollar denominated TruPS originated by the Manager and Cohen Bros. that will collateralize the CDOs as to which the
Company has exercised the right of first refusal to acquire equity interests and (b) purchase the equity interests in CLOs of U.S. dollar denominated Leveraged Loans for which Cohen Bros. or its affiliates will serve as collateral manager. The
foregoing rights of the Company are referred to herein collectively as the “Right of First Refusal.” 

 Notwithstanding anything contained herein to the contrary, the Right of First Refusal shall not extend to (1) individual investments in Leveraged Loans, (2) TruPS that collateralize CDOs in which the Company declines its Right of
First Refusal to acquire equity interests in the CDO or (3) any non-U.S. dollar denominated investments. In addition, Cohen Bros. shall have a limited right, which if exercised shall not violate the Right of First Refusal, to substitute newly
originated or acquired TruPS investments for existing TruPS investments held by a CDO if such existing TruPS have been downgraded by one or more rating agencies and, as a result, are disposed of by the CDO. Further, the Right of First Refusal shall
not apply to up to $100 million of TruPS issued by banks, bank holding companies and insurance companies that may be acquired by Alesco Preferred Funding IX Ltd. prior to April 14, 2006. 
 In order to enable the Company to exercise the Right of First Refusal, Cohen Bros. shall, or shall cause one of its subsidiaries to, provide the Company
with at least 15 business days advance notice of the opportunity to exercise the Right of First Refusal, together with such information as may reasonably be necessary to enable the Company to make an informed investment decision. The Company shall
have 15 business days after receipt of such notice to notify Cohen Bros. of its desire to exercise the Right of First Refusal with 

 
respect to the investment. If the Company has not notified Cohen Bros. of its desire to exercise the Right of First Refusal within that 15 day period, the
Company shall be deemed to have declined to make such investment and Cohen Bros. shall have no further obligation to the Company pursuant to this letter agreement with respect to such investment and Cohen Bros. shall be free to deal in such
investment in its discretion. 
  

	 	(2)	Cohen Bros. and its Affiliates shall comply with the Investment Guidelines and Conflict of Interest Policies applicable to the Manager and its Affiliates under the Management
Agreement. 

 In the event of any breach of this letter agreement by Cohen Bros., the Company shall be entitled to injunctive relief, in
addition to any other remedy available at law or equity. 
 Capitalized terms used but not defined in this letter agreement have the meanings ascribed to
such terms in the Management Agreement. 
 This letter agreement shall be governed by and construed in accordance with the laws of the State of New York,
without regard to its conflicts of laws principles. 
 This letter agreement may be signed in one or more counterparts, all of which when taken together
shall be deemed to be one and the same instrument. 
 If the foregoing accurately reflects your understanding of our
agreement, please execute this Letter Agreement below. 
 [Signature page follows.] 

			
	COHEN BROTHERS, LLC
		
	By:	 	/s/    Daniel G. Cohen
		 	 Name: Daniel G. Cohen
 Title: Chief Executive
Officer

  

			
	ALESCO FINANCIAL TRUST
		
	By:	 	/s/    Raphael Licht
		 	 Name: Raphael Licht
 Title: Chief Legal Officer and
Secretary

 [Signature page to Letter Agreement.]Amended and Restated 2001 Stock Option Plan for Non-Employee Directors.

 Exhibit 10.13 
 PALM, INC. 
 2001 STOCK OPTION PLAN FOR NON-EMPLOYEE DIRECTORS 
 (As Amended and Restated Effective as of October 5, 2006) 

 TABLE OF CONTENTS 
  

					
	 	    	 	  	Page
	SECTION 1 EFFECTIVE DATE AND PURPOSE	  	1
			
	        1.1	    	Effective Date	  	1
	        1.2	    	Purpose of the Plan.	  	1
		
	SECTION 2 DEFINITIONS	  	1
			
	        2.1	    	“1934 Act”	  	1
	        2.2	    	“Board”	  	1
	        2.3	    	“Change of Control”	  	1
	        2.4	    	“Committee”	  	2
	        2.5	    	“Company”	  	2
	        2.6	    	“Director”	  	2
	        2.7	    	“Disability”	  	2
	        2.8	    	“Exercise Price”	  	2
	        2.9	    	“Fair Market Value”	  	2
	        2.10	    	“Grant Date”	  	2
	        2.11	    	“Non-Employee Director”	  	2
	        2.12	    	“Option”	  	2
	        2.13	    	“Option Agreement”	  	2
	        2.14	    	“Participant”	  	2
	        2.15	    	“Plan”	  	2
	        2.16	    	“Shares”	  	2
	        2.17	    	“Subsidiary”	  	3
	        2.18	    	“Termination of Service”	  	3
		
	SECTION 3 ADMINISTRATION	  	3
			
	        3.1	    	The Committee	  	3
	        3.2	    	Authority of the Committee	  	3
	        3.3	    	Decisions Binding	  	3
		
	SECTION 4 SHARES SUBJECT TO THE PLAN	  	3
			
	        4.1	    	Number of Shares	  	3
	        4.2	    	Lapsed Options	  	3
	        4.3	    	Adjustments in Options and Authorized Shares	  	3
		
	 SECTION 5 STOCK OPTIONS
	  	4
			
	        5.1	    	Granting of Options	  	4
	        5.2	    	Terms of Options	  	6
	        5.3	    	Exercise	  	6
	        5.4	    	Options are not Incentive Stock Options	  	7
		
	SECTION 6 MISCELLANEOUS	  	7
			
	        6.1	    	No Effect on Service	  	7
	        6.2	    	Indemnification	  	7

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	    	 	  	Page
	        6.3	    	Successors	  	7
	        6.4	    	Beneficiary Designations	  	7
	        6.5	    	Nontransferability of Options	  	8
	        6.6	    	No Rights as Stockholder	  	8
	        6.7	    	Withholding Requirements	  	8
		
	SECTION 7 AMENDMENT, TERMINATION, AND DURATION	  	8
			
	        7.1	    	Amendment or Termination	  	8
	        7.2	    	Duration of the Plan	  	8
		
	 SECTION 8 LEGAL CONSTRUCTION
	  	8
			
	        8.1	    	Gender and Number	  	8
	        8.2	    	Severability	  	8
	        8.3	    	Requirements of Law	  	9
	        8.4	    	Compliance with Rule 16b-3	  	9
	        8.5	    	Governing Law	  	9
	        8.6	    	Captions	  	9

  

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 PALM, INC. 
 2001 STOCK OPTION PLAN FOR NON-EMPLOYEE DIRECTORS 
 (As Amended and Restated Effective as of October 5,
2006) 
 PALM, INC., having adopted the Palm, Inc. 2001 Stock Option Plan for Non-Employee Directors (the “Plan”) effective as of
October 11, 2001, amended and restated the Plan in its entirety effective as of October 15, 2002 and amended and restated the Plan in its entirety effective as of October 28, 2003, hereby further amends and restates the Plan in its
entirety effective as of October 5, 2006, as follows: 
 SECTION 1 
 EFFECTIVE DATE AND PURPOSE 
 1.1 Effective Date. The Plan originally became
effective as of October 11, 2001. This amended and restated Plan is effective as of October 5, 2006. 
 1.2 Purpose of the
Plan. The Plan is intended to closely align the interests of the Non-Employee Directors with the interests of the Company’s stockholders. This is achieved by making a significant portion of Non-Employee Director compensation directly
related to the total return performance of the Shares. The Plan also is intended to encourage Share ownership on the part of Non-Employee Directors. 
 SECTION 2 
 DEFINITIONS 
 The following words and phrases shall have the following meanings unless a different meaning is plainly required by the context: 
 2.1 “1934 Act” means the Securities Exchange Act of 1934, as amended. Reference to a specific section of the 1934 Act or regulation thereunder shall include such section or regulation, any valid regulation promulgated under
such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation. 
 2.2 “Board” means the Board of Directors of the Company. 
 2.3 “Change of
Control” means the occurrence of any of the following events: 
 (a) Any “person” (as such term is used in Sections 13(d)
and 14(d) of the 1934 Act) becomes the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power
represented by the Company’s then outstanding voting securities; or 
 (b) The consummation of the sale or disposition by the Company
of all or substantially all the Company’s assets; or 
 (c) The consummation of a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the voting 

 securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining out-standing
or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding
immediately after such merger or consolidation; or 
 (d) A change in the composition of the Board occurring within a two-year period, as a
result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (1) are directors of the Company as of the effective date of the Plan, or (2) are elected, or
nominated for election, to the Board with the affirmative votes of at least a majority of those directors whose election or nomination was not in connection with any transaction described in subsections (a), (b), or (c) above, or in connection
with an actual or threatened proxy contest relating to the election of directors to the Company. 
 2.4 “Committee” means
the committee appointed pursuant to Section 3.1 to administer the Plan. 
 2.5 “Company” means Palm, Inc., a Delaware
corporation, or any successor thereto. 
 2.6 “Director” means an individual who is a member of the Board. 
 2.7 “Disability” means a permanent and total disability, as determined by the Committee (in its discretion) in accordance with uniform
and non-discriminatory standards adopted by the Committee from time to time. 
 2.8 “Exercise Price” means the price at
which a Share may be purchased by a Participant pursuant to the exercise of an Option. 
 2.9 “Fair Market Value” means the
closing per share selling price for the Shares, as quoted on the Nasdaq National Market for the date in question. 
 2.10 “Grant
Date” means, with respect to a particular Option, the date on which the Option was granted. 
 2.11 “Non-Employee
Director” means a Director who is an employee of neither the Company nor of any Subsidiary. 
 2.12 “Option” means
an option to purchase Shares granted pursuant to Section 5. 
 2.13 “Option Agreement” means the written agreement
setting forth the terms and provisions applicable to each Option granted under the Plan. 
 2.14 “Participant” means a
Non-Employee Director who has an outstanding Option. 
 2.15 “Plan” means the Palm, Inc. 2001 Stock Option Plan for
Non-Employee Directors, as set forth in this instrument and as hereafter amended from time to time. 
 2.16 “Shares” means
the shares of the Company’s common stock, $0.001 par value. 
  

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 2.17 “Subsidiary” means any corporation in an unbroken chain of corporations beginning
with the Company if each of the corporations other than the last corporation in the unbroken chain then owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 
 2.18 “Termination of Service” means a cessation of the Participant’s service on the
Board for any reason. 
 SECTION 3 
 ADMINISTRATION 
 3.1 The Committee. The Plan shall be administered by the Committee. The Committee shall consist of one or
more Directors who shall be appointed by, and serve at the pleasure of, the Board. Until otherwise determined by the Board, the Compensation Committee of the Board shall serve as the Committee. 
 3.2 Authority of the Committee. It shall be the duty of the Committee to administer the Plan in accordance with the Plan’s provisions.
The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (a) interpret the Plan and the Options, (b) adopt rules for the
administration, interpretation and application of the Plan as are consistent therewith, (c) interpret, amend or revoke any such rules, and (d) adopt such procedures and subplans as are necessary or appropriate to permit participation in
the Plan by Non-Employee Directors who are foreign nationals or employed outside of the United States. 
 3.3 Decisions
Binding. All determinations and decisions made by the Committee shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law. 
 SECTION 4 
 SHARES SUBJECT TO THE PLAN 
 4.1 Number of Shares. Subject to adjustment as provided in Section 4.3, the total number of Shares available for grant under the Plan
shall not exceed 1,900,000. Shares issued under the Plan may be either authorized but unissued Shares or treasury Shares. 
 The total number
of Shares available for grant under the Plan shall be appropriately increased from time to time for any increase in the number of issued Shares resulting from any adjustment pursuant to Section 4.3.1 in connection with the transaction in which
the Company’s interest in its PalmSource, Inc. subsidiary is distributed to the Company’s stockholders. 
 4.2 Lapsed
Options. If an Option terminates or expires for any reason, any Shares subject to such Option again shall be available to be the subject of an Option. 
 4.3 Adjustments in Options and Authorized Shares.
 4.3.1 Changes in Capitalization. Subject to
any required action by the shareholders of the Company, the number and class of Shares which may be delivered under the Plan, and the 
  

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 number, class, and Exercise Price of Shares subject to outstanding Options and future grants, shall be proportionately
adjusted by the Committee for any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend, spin-off combination or reclassification of the Shares, or any other increase or decrease in the
number of issued Shares 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.”
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 subject to an Option. 
 4.3.2 Dissolution or Liquidation. In the event of the proposed dissolution or liquidation
of the Company, to the extent that an Option has not been previously exercised, it shall terminate immediately prior to the consummation of such proposed action. 
 4.3.3 Merger or Asset Sale. In the event of a merger of the Company with or into another corporation or the sale of substantially all of the assets of the Company, outstanding Options may be assumed or
equivalent options may be substituted by the successor corporation or a parent or subsidiary thereof (the “Successor Corporation”). If the Successor Corporation does not assume an outstanding Option or substitute for it an equivalent
option, the Option shall become fully vested and exercisable, including as to Shares for which it would not otherwise be exercisable. In such event the Committee shall notify the Participant that the Option shall be fully exercisable for a period of
thirty (30) days from the date of such notice, and upon the expiration of such period the Option shall terminate. For this purpose, an Option shall be considered assumed if, following the merger or sale of assets, the Option confers the right
to purchase or receive, for each Share covered by the Option immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets by holders of Shares
for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares). If such consideration received in the
merger or sale of assets is not solely common stock of the Successor Corporation, the Committee may, with the consent of the Successor Corporation, provide for the consideration to be received upon the exercise of the Option, for each Share subject
to the Option, to be solely common stock of the Successor Corporation equal in fair market value to the per share consideration received by holders of Shares in the merger or sale of assets. 
 SECTION 5 
 STOCK OPTIONS 
 5.1 Granting of Options.
 5.1.1
Initial Grants. Each individual who first becomes a Non-Employee Director on or after the 2006 Annual Meeting of the Company’s stockholders automatically shall receive an Option on the date that he or she first is appointed or elected as
a Non-Employee Director. The number of Shares covered by each Option described in this Section 5.1.1 shall equal 24,000. 
 5.1.2
Ongoing Grants for Service on the Board. Each Non-Employee Director automatically shall receive an Option on the date of each Annual Meeting of the Company’s 
  

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 stockholders that occurs on or after the 2006 Annual Meeting of the Company’s stockholders, provided that the
individual will receive such Option only if he or she both (a) is a Non-Employee Director on that date, and (b) has served as a Non-Employee Director for at least the six (6) months immediately preceding that date. The number of
Shares covered by each Option described in this Section 5.1.2 shall equal 12,000. 
 5.1.3 Grants for Service as a Committee
Chair. Each Non-Employee Director who first becomes the Chairman of a standing committee of the Board (a “Committee Chair”) on or after the 2006 Annual Meeting of the Company’s stockholders automatically shall receive an Option on
the date that he or she first is appointed as a Committee Chair. Each Non-Employee Director who either has (a) received an Option pursuant to the foregoing sentence, or (b) received an Option pursuant to this Section 5.1.3 as in
effect before the 2006 Annual Meeting of the Company’s stockholders also automatically shall receive an Option on the date of each subsequent Annual Meeting of the Company’s stockholders, provided that the individual will receive such
Option only if he or she both (i) is a Committee Chair on that date, and (ii) has served in such position for at least the six (6) months immediately preceding that date. A Non-Employee Director shall be entitled to more than one
Option pursuant to this Section 5.1.3 to the extent that on any Grant Date, he or she is the Chairman of more than one standing committee of the Board. The number of Shares covered by each Option described in this Section 5.1.3 shall equal
5,000. Each Option granted pursuant to this Section 5.1.3 shall be in addition to any other Option(s) to which the Non-Employee Director may be entitled under any other subsection of Section 5.1. 
 5.1.4 Grants for Service as a Committee Member. Each Non-Employee Director who first becomes a member of a standing committee of the Board (a
“Committee Member”) on or after the 2006 Annual Meeting of the Company’s stockholders automatically shall receive an Option on the date that he or she first is appointed as a Committee Member. Each Non-Employee Director who either has
(a) received an Option pursuant to the foregoing sentence, or (b) received an Option pursuant to this Section 5.1.4 as in effect before the 2006 Annual Meeting of the Company’s stockholders also automatically shall receive an
Option on the date of each subsequent Annual Meeting of the Company’s stockholders, provided that the individual will receive such Option only if he or she both (i) is a Committee Member on that date, and (ii) has served in such
position for at least the six (6) months immediately preceding that date. A Non-Employee Director shall be entitled to more than one Option pursuant to this Section 5.1.4 to the extent that on any Grant Date, he or she has qualifying
membership on more than one standing committee of the Board. The number of Shares covered by each Option described in this Section 5.1.4 shall equal 4,000. Each Option granted pursuant to this Section 5.1.4 shall be in addition to any
other Option(s) to which the Non-Employee Director may be entitled under any other subsection of Section 5.1, except that a Non-Employee Director shall not receive an Option under this Section 5.1.4 for service on any committee with
respect to which he or she is entitled to receive an Option under Section 5.1.3. 
 5.1.5 Grants for Service as Chairman of the
Board. Each Non-Employee Director who is the Chairman of the Board on the date of an Annual Meeting of the Company’s stockholders that occurs on or after the 2006 Annual Meeting of the Company’s stockholders automatically shall receive
an Option to purchase 8,000 Shares on that date. Each Option granted pursuant to this Section 5.1.5 shall be in addition to any other Option(s) to which the Non-Employee Director may be entitled under any other subsection of Section 5.1.

  

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 5.2 Terms of Options.
 5.2.1 Option Agreement. Each Option shall be evidenced by a written Option Agreement (satisfactory to the Committee) which shall be executed by the Participant and the Company. 
 5.2.2 Exercise Price. The Exercise Price for the Shares subject to each Option shall be 100% of the Fair Market Value of such Shares on the Grant
Date. 
 5.2.3 Exercisability. 
 (a) Each Option shall become exercisable in three (3) equal annual installments, commencing on the first anniversary of the applicable Grant Date, except as follows. If a Change of Control occurs while the Non-Employee Director is such
and the Non-Employee Director will cease to be such as an immediate and direct consequence of the Change of Control, the Option (if not yet expired) shall become fully exercisable on the date of the Change of Control. Notwithstanding the preceding,
once a Participant ceases to be a Director, his or her Options which are not then exercisable shall never become exercisable and shall be immediately forfeited, except to the limited extent provided in Section 5.2.3(b). 
 (b) Upon a Non-Employee Director’s death, all unvested and unexpired Options held by such person shall immediately become exercisable. 

5.2.4 Expiration of Options. Each Option shall terminate upon the first to occur of the following events: 
 (a) The expiration of ten (10) years from the Grant Date for Options granted prior to October 5, 2006 or the expiration of seven (7) years
from the Grant Date for Options granted on or after October 5, 2006; 
 (b) The expiration of three (3) months from the date of
the Participant’s Termination of Service prior to age 65 for any reason other than the Participant’s death or Disability; 
 (c)
The expiration of one (1) year from the date of the Participant’s Termination of Service by reason of Disability, or 
 (d) The
expiration of one (1) year from the date of the Participant’s Termination of Service at or after age 65 for any reason other than the Participant’s death or Disability. 
 5.2.5 Death of Director. Notwithstanding Section 5.2.4, if a Director dies prior to the expiration of his or her Option(s) in accordance with
Section 5.2.4, his or her Option(s) which are exercisable on the date of his or her death shall terminate one (1) year after the date of death. 
 5.3 Exercise. Options shall be exercised by the Participant’s delivery of a notice of exercise in such form and manner as the Company (or its designee) may designate from time to time. In all events,
the notice shall set forth the number of Shares with respect to which the Option is to be exercised, and be accompanied by full payment for the Shares. Upon the exercise of any Option, the Exercise Price shall be payable to the Company in full in
cash or its equivalent. The Committee, in 
  

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 its sole discretion, also may permit exercise by (a) tendering previously acquired Shares having an aggregate Fair
Market Value at the time of exercise equal to the total Exercise Price, or (b) any other means which the Committee, in its sole discretion, determines to both provide legal consideration for the Shares, and to be consistent with the purposes of
the Plan. As soon as practicable after receipt of a written notification of exercise and full payment for the Shares purchased, the Company shall deliver to the Participant (or the Participant’s designated broker), Share certificates (which may
be in book-entry form) representing such Shares. 
 5.4 Options are not Incentive Stock Options. Options are not intended to be
incentive stock options within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended. 
 SECTION 6 
 MISCELLANEOUS 
 6.1 No Effect on
Service. Nothing in the Plan shall (a) create any obligation on the part of the Board to nominate any Participant for reelection by the Company’s stockholders, or (b) interfere with or limit in any way the right of the
Company to terminate any Participant’s service. 
 6.2 Indemnification. Each person who is or shall have been a member of
the Committee, or of the Board, shall be indemnified and held harmless by the Company against and from (a) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from
any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any Option Agreement, and (b) from any and all amounts paid by him
or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its
own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may
be entitled under the Company’s Certificate of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless. 
 6.3 Successors. All obligations of the Company under the Plan shall be binding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the Company. 
 6.4 Beneficiary Designations. If permitted by the Committee, a Participant may name a beneficiary or beneficiaries to whom any vested but unpaid Option shall be paid in the event of the Participant’s
death. Each such designation shall revoke all prior designations by the Participant and shall be effective only if given in a form and manner acceptable to the Committee. In the absence of any such designation, any vested benefits remaining unpaid
at the Participant’s death shall be paid to the Participant’s estate and, subject to the terms of the Plan and of the applicable Option Agreement, any unexercised vested Option may be exercised by the administrator or executor of the
Participant’s estate. 
  

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 6.5 Nontransferability of Options. No Option granted under the Plan may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution, or to the limited extent provided in Section 6.4. All rights with respect to an Option granted to a Participant shall be
available during his or her lifetime only to the Participant. Notwithstanding the foregoing, the Participant may, if permitted by the Committee and in a manner specified by the Committee, transfer an Option by bona fide gift and not for any
consideration, to a member of the Participant’s immediate family or to a trust or other entity for the exclusive benefit of the Participant and/or a member or members of the Participant’s immediate family. 
 6.6 No Rights as Stockholder. No Participant (nor any beneficiary) shall have any of the rights or privileges of a stockholder of the Company
with respect to any Shares issuable pursuant to an Option (or exercise thereof), unless and until certificates representing such Shares shall have been issued, recorded on the records of the Company or its transfer agents or registrars, and
delivered to the Participant or beneficiary. 
 6.7 Withholding Requirements. Prior to the delivery of any Shares or cash
pursuant to an Option (or exercise thereof), the Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy the minimum Federal, state, and local taxes required
to be withheld with respect to such Option (or exercise thereof). 
 SECTION 7 
 AMENDMENT, TERMINATION, AND DURATION 
 7.1 Amendment or Termination. The
Board, in its sole discretion, may amend or terminate the Plan, or any part thereof, at any time and for any reason. The amendment, suspension, or termination of the Plan shall not, without the consent of the Participant, alter or impair any rights
or obligations under any Option theretofore granted to such Participant. 
 7.2 Duration of the Plan. This amended and restated
Plan is effective as of October 5, 2006 and, subject to Section 7.1 (regarding the Board’s right to amend or terminate the Plan), shall remain in effect thereafter. 
 SECTION 8 
 LEGAL CONSTRUCTION 
 8.1 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the
plural shall include the singular and the singular shall include the plural. 
 8.2 Severability. In the event any provision of
the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

  

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 8.3 Requirements of Law. The granting of Options and the issuance of Shares under the Plan
shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 8.4 Compliance with Rule 16b-3. For the purpose of ensuring that transactions under the Plan do not subject Participants to liability under Section 16(b) of the 1934 Act, all transactions under the
Plan are intended to comply with all applicable conditions of Rule 16b-3 promulgated under the 1934 Act, and any future regulation amending, supplementing or superseding such regulation. To the extent any provision of the Plan, Option Agreement or
action by the Committee or a Participant fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee. 
 8.5 Governing Law. The Plan and all Option Agreements shall be construed in accordance with and governed by the laws of the State of California without giving effect to any choice or conflict of law
provision or rule (whether of the State of California or otherwise) which would cause the application of the laws of any jurisdiction other than the State of California. 
 8.6 Captions. Captions provided herein are for convenience only, and shall not serve as a basis for interpretation or construction of the Plan. 
  

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