Document:

Exhibit 10.4 Restricted Stock Agreement

    EXHIBIT
      10.4

    
      Schedule
        Prepared in Accordance with Instruction 2 to Item 601 of Regulation
        S-K

        

      The
        Restricted Stock Agreements are substantially identical in all material respects
        except as to the grantee and the number of shares.

      

      

      
        	
                Grantee:

              	
                Number
                  of Shares:

              
	
                George
                  L. Ball

              	
                5,000

              
	
                Clarence
                  A. Davis

              	
                5,000

              
	
                Michael
                  C. James

              	
                5,000

              
	
                David
                  N. Jordan

              	
                5,000

              
	
                Nina
                  R. Mitchell

              	
                5,000

              
	
                Thodore
                  Petroulas

              	
                5,000

              
	
                Daryl
                  Silzer

              	
                5,000

              

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

     

    RESTRICTED
      STOCK AGREEMENT

    

    This
      Restricted Stock Agreement (this “Agreement”)
      is
      made as of this 1st
      day of
      February 2007 (the “Effective
      Date”)
      between Nestor, Inc., a Delaware corporation (the “Company”),
      and
      Clarence A. Davis (the “Director”).

     

    R
      E C
      I T A L S

    

    A. The
      Company believes it to be in the best interests of the Company and its
      stockholders to take action to promote the stability of its Board of Directors
      and otherwise align the interests of the members of the Board of Directors
      with
      those of the Company; and

    

    B. Accordingly
      the Company has determined to issue restricted shares of stock in accordance
      with the provisions of this Agreement and the 2004 Stock Incentive Plan of
      the
      Company (the “Plan”).
      

    

    NOW,
      THEREFORE, in consideration of the mutual covenants contained herein and other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto agree as follows: 

    

    1. Issuance
      of Restricted Stock.

    

    Pursuant
      to the provisions of the Plan, and subject to the terms and conditions of the
      Plan and the terms and conditions herein, upon
      execution of this Agreement (the “Grant Date”), the Company will issue to the
      Director 5,000 shares of Common Stock, $0.01 par value per share, of the Company
      (the “Common
      Stock”)
      in
      consideration of the Director’s services to the Company for the term ending at
      the 2007 annual meeting of stockholders. All of such Common Stock issued to
      the
      Director hereby is referred to herein as “Restricted
      Stock”.
      The
      Restricted Stock will also include equity interests of the Company issued with
      respect to the Restricted Stock by way of an equity split, dividend of equity
      or
      other recapitalization. To secure the restrictions on the Restricted Stock,
      the
      Company will retain possession of the certificates representing the Restricted
      Stock, together with executed stock powers in blank, and will provide the
      Director with copies thereof. 

    

    2. Vesting
      of Restricted Stock.

    

    All
      of
      the Restricted Stock is non-vested and forfeitable as of the Grant Date. The
      Restricted Stock granted hereunder will be deemed “vested” on earlier of (i) the
      date of the annual meeting of the stockholders of the Company in 2007 or (ii)
      December 31, 2007. 

    

    3. Forfeiture
      of Restricted Stock.

    

    If
      the
      Director’s service with the Company ceases for any reason, all Restricted Stock
      that is not then vested and non-forfeitable will be immediately forfeited to
      the
      Company upon such cessation for no consideration.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4. Non-Transferability;
      Legend.

    

    Until
      the
      Restricted Stock becomes vested and non-forfeitable, it may not be assigned,
      transferred, pledged, hypothecated or disposed of in any way (whether by
      operation of law or otherwise) and shall not be subject to execution, attachment
      or similar process.

    

    The
      certificates representing the Restricted Stock will bear the following legend:
      

    

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS
      AND OTHER TERMS SET FORTH IN A RESTRICTED STOCK AGREEMENT DATED AS OF JULY
      3,
      2006, BETWEEN THE COMPANY AND THE OTHER SIGNATORY THERETO. A COPY OF SUCH
      AGREEMENT MAY BE OBTAINED BY THE HOLDER HEREOF AT THE COMPANY’S PRINCIPAL PLACE
      OF BUSINESS WITHOUT CHARGE.”

    

    5. Rights
      as Stockholder.
      

    

    Except
      as
      otherwise provided in this Agreement with respect to the non-vested and
      forfeitable Restricted Stock, the Director is entitled to all rights of a
      stockholder of the Company, including the right to vote the Restricted Stock
      and
      receive dividends and/or other distributions declared on the Restricted
      Stock.

    

    6. General
      Provisions.

    

    (a) Severability.
      The
      parties agree that each provision herein shall be treated as a separate and
      independent clause, and the unenforceability of any one clause shall in no
      way
      impair the enforceability of any other clauses of this Agreement. If any one
      or
      more provisions of this Agreement is held to be invalid or unenforceable for
      any
      reason, including due to being overbroad in scope activity, subject or
      otherwise: (i) this Agreement shall be considered divisible; (ii) such
      provision shall be deemed inoperative to the extent it is deemed invalid or
      unenforceable; and (iii) in all other respects this Agreement shall remain
      in full force and effect; provided, however, that if any such provision maybe
      made valid or enforceable by limitation thereof, then such provision shall
      be
      deemed to be so limited and shall be valid and/or enforceable to the maximum
      extent permitted by applicable law. 

    

    (b) Entire
      Agreement.
      This
      Agreement, together with the Plan, constitutes the entire agreement and
      understanding of the parties hereto concerning the subject matter hereof and
      from and after the date of this Agreement, this Agreement shall supersede any
      other prior negotiations, discussions, writings, agreements or understandings,
      both written and oral, between the parties with respect to such subject matter.
      

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    (c) Counterparts.
      This
      Agreement may be executed in separate counterparts, each of which is deemed
      to
      be an original and all of which taken together constitute one and the same
      agreement. 

    

    (d) Successors
      and Assigns.

     

    
      	 	
              (i)
                

            	
              
                This
                  Agreement is personal to the Director and without the prior written
                  consent of the Company shall not be assignable by the Director.
                  This
                  Agreement shall inure to the benefit of and shall be enforceable
                  by the
                  Director and the Director’s legal representatives.

                 

              

            

    

    
      	
               

            	
              (ii)
                

            	
              This
                Agreement shall inure to the benefit of and be binding upon the Company
                and its successors and assigns. 

               

            

    

    
      	 	
              (iii)

            	
              Nothing
                in this Agreement, express or implied, is intended to or shall confer
                upon
                any person other than the parties hereto, and their respective heirs,
                legal representatives, successors, and permitted assigns, any rights,
                benefits, or remedies of any nature whatsoever under or by reason
                of this
                Agreement. 

            

    

    

    (e) Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Rhode Island, without giving effect to any choice of law or conflict
      of
      law provision or rule (whether of the State of Rhode Island or any other
      jurisdiction) that would cause the application of the law of any jurisdiction
      other than the State of Rhode Island. 

    

    (f) Remedies.
      Each of
      the parties to this Agreement and any such Person granted rights hereunder
      whether or not such Person is a signatory hereto shall be entitled to enforce
      its rights under this Agreement specifically to recover damages and costs
      (including reasonable attorneys’ fees) for any breach of any provision of this
      Agreement and to exercise all other rights existing in its favor. The parties
      hereto agree and acknowledge that money damages may not be an adequate remedy
      for any breach of the provisions of this Agreement and that any party and any
      such Person granted rights hereunder whether or not such Person is a signatory
      hereto may in its sole discretion apply to any court of law or equity of
      competent jurisdiction for specific performance and/or other injunctive relief
      (without posting any bond or deposit) in order to enforce or prevent any
      violations of the provisions of this Agreement. 

    

    (g) Amendment
      and Waiver.
      The
      provisions of this Agreement may be amended and waived only with the prior
      written consent of the Company and the Director and no course of conduct or
      failure or delay in enforcing the provisions of this Agreement shall be
      construed as a waiver of such provisions or affect the validity, binding effect
      or enforceability of this Agreement or any provision hereof. 

    

    (h) Notices.
      Any
      notice provided for in this Agreement must be in writing and must be either
      personally delivered, transmitted via facsimile, mailed by first class mail
      (postage prepaid and return receipt requested) or sent by reputable overnight
      courier service (charges prepaid) to the recipient at the address below
      indicated or at such other address or to the attention of such other person
      as
      the recipient party has specified by prior written notice to the sending party.
      Notices will be deemed to have been given hereunder and received when delivered
      personally, when received if transmitted via facsimile, five (5) days after
      deposit in the U.S. mail and one (1) day after deposit with a reputable
      overnight courier service. 

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    If
      to the
      Company, to: 

    

    Nestor,
      Inc.

    42
      Oriental Street

    Providence,
      Rhode Island 02906

    Attention:
      President 

    

    With
      a
      copy to: 

    

    Nestor,
      Inc.

    42
      Oriental Street

    Providence,
      Rhode Island 02906

    Attention:
      General Counsel 

    

    If
      to the
      Director, to:

     

    Clarence
      A. Davis

    7
      Hibernia Road

    Savannah,
      GA  31411

    

    (i) Business
      Days.
      If any
      time period for giving notice or taking action hereunder expires on a day which
      is a Saturday, Sunday or holiday in the state in which the Company’s chief
      executive office is located, the time period for giving notice or taking action
      shall be automatically extended to the business day immediately following such
      Saturday, Sunday or holiday. 

    

    (j) Descriptive
      Headings.
      The
      descriptive headings of this Agreement are inserted for convenience only and
      do
      not constitute a part of this Agreement. 

     

    (k) Construction.
      Where
      specific language is used to clarify by example a general statement contained
      herein, such specific language shall not be deemed to modify, limit or restrict
      in any manner the construction of the general statement to which it relates.
      The
      language used in this Agreement shall be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rule of strict construction
      shall
      be applied against any party. 

    

    (l) WAIVER
      OF JURY TRIAL.
      EACH OF
      THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN
      ANY
      ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.
      

    
 

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (m) Nouns
      and Pronouns.
      Whenever the context may require, any pronouns used herein shall include the
      corresponding masculine, feminine or neuter forms, and the singular form of
      nouns and pronouns shall include the plural and vice versa. 

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Restricted Stock
      Agreement as of the date first written above. 

    

    

      
        	 	
                NESTOR,
                  INC.

              
	 	 
	 	
                By:
                  /s/ Nigel P. Hebborn

              
	 	
                Nigel
                  P. Hebborn

              
	 	
                Executive
                  Vice President, Treasurer and CFO

              
	 	 
	 	 
	 	 
	 	
                DIRECTOR

              
	 	 
	 	
                By:
                  /s/ Clarence A. Davis

              
	 	
                Clarence
                  A. Davis

              
	 	 

      

    

     

    

    

    
      
        
        

      

      
        -5-Unassociated Document

    AMENDMENT
      NUMBER ONE

    

    to
      the

    

    POOLING
      AND SERVICING AGREEMENT

    

    BEAR
      STEARNS ASSET BACKED SECURITIES I TRUST 2006-HE10,

    

    Dated
      as
      of December 1, 2006

    

    among

    

    BEAR
      STEARNS ASSET BACKED SECURITIES I LLC,

    as
      Depositor,

    

    EMC
      MORTGAGE CORPORATION,

    as
      Seller
      and Master Servicer,

    

    and

    

    LASALLE
      BANK NATIONAL ASSOCIATION,

    as
      Trustee

    

    

    This
      AMENDMENT NUMBER ONE is made and entered into this 1st
      day of
      February, 2007, by and among BEAR STEARNS ASSET BACKED SECURITIES I LLC, a
      Delaware limited liability company, as depositor (the “Depositor”), EMC MORTGAGE
      CORPORATION, a Delaware corporation, as seller (in such capacity, the “Seller”)
      and as master servicer (in such capacity, the “Master Servicer ”), and LASALLE
      BANK NATIONAL ASSOCIATION, a national banking association, as trustee (the
      “Trustee”), in connection with the Pooling and Servicing Agreement, dated as of
      December 1, 2006, among the above-mentioned parties (the “Agreement”), and the
      issuance of Bear Stearns Asset Backed Securities I Trust 2006-HE10, Asset-Backed
      Certificates, Series 2006-HE10. This amendment is made pursuant to Section
      11.01
      of the Agreement.

    

    1. Capitalized
      terms used herein and not defined herein shall have the meanings assigned to
      such terms in the Agreement.

     

    
      2. The
        definition of Group I Interest Coverage Distribution Amount in Section 1.01
        of
        the Agreement shall be amended by deleting it in its entirety and replacing
        it
        with the following:

      

      Group
        I Interest Coverage Distribution Amount: With respect to each Distribution
        Date, an amount equal to (x) the weighted average Pass-Through Rate of the
        Group
        I Certificates, multiplied by (y) the sum of (A) the Group I Remaining
        Pre-Funded Amount outstanding at the end of the related Due Period and (B)
        the
        aggregate Stated Principal Balance of the Group I Subsequent Mortgage Loans
        that
        do not have a Subsequent Cut-off Date prior to the end of the related Due
        Period, transferred to the Trust during the related Due Period.

      

      3. The
        definition of Group II Interest Coverage Distribution Amount in Section 1.01
        of
        the Agreement shall be amended by deleting it in its entirety and replacing
        it
        with the following:

      

      Group
        II Interest Coverage Distribution Amount: With respect to each Distribution
        Date, an amount equal to (x) the weighted average Pass-Through Rate of the
        Group
        II Certificates, multiplied by (y) the sum of (A) the Group II Remaining
        Pre-Funded Amount outstanding at the end of the related Due Period and (B)
        the
        aggregate Stated Principal Balance of the Group II Subsequent Mortgage Loans
        that do not have a Subsequent Cut-off Date prior to the end of the related
        Due
        Period, transferred to the Trust during the related Due
        Period.

    

     

    4. The
      definition of Subsequent Cut-off Date in Section 1.01 of the Agreement shall
      be
      amended by deleting it in its entirety and replacing it with the
      following:

    

    Subsequent
      Cut-off Date:
      With
      respect to the Subsequent Mortgage Loans sold to the Trust pursuant to a
      Subsequent Transfer Instrument, the date stated in the related Subsequent
      Mortgage Loan Purchase Agreement.

    

    5. Section
      2.07 of the Agreement is hereby amended by adding the following as Subsection
      2.07(c)(v):

    

    (v) the
      Depositor shall have received an acknowledgment from each Rating Agency that
      conveyance of the Group I Subsequent Mortgage Loans does not result in a
      reduction or withdrawal of any ratings assigned to the Group I Certificates
      by
      the Rating Agencies, provided that, in the case of S&P, such acknowledgement
      shall be a written acknowledgement;

     

    6. Section
      2.08 of the Agreement is hereby amended by adding the following as Subsection
      2.08(c)(v):

    

    (v) the
      Depositor shall have received an acknowledgment from each Rating Agency that
      conveyance of the Group II Subsequent Mortgage Loans does not result in a
      reduction or withdrawal of any ratings assigned to the Group II Certificates
      by
      the Rating Agencies, provided that, in the case of S&P, such acknowledgement
      shall be a written acknowledgement;

     

    7. Except
      as
      amended above, the Agreement shall continue to be in full force and effect
      in
      accordance with its terms.

     

    

    [Signature
      Page Follows]

    

    

    IN
      WITNESS WHEREOF, the Depositor, the Seller, the Master Servicer and the Trustee
      have caused their names to be signed hereto by their respective officers
      thereunto duly authorized as of the day and year first above
      written.

    

    
      	 	 	 	 	 	 	 	
              BEAR
                STEARNS ASSET BACKED

              SECURITIES
                I LLC,

              as
                Depositor

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	
              /s/
                Baron Silverstein

            
	 	 	 	 	 	 	 	
              Name:

            	
              Baron
                Silverstein

            
	 	 	 	 	 	 	 	
              Title:

            	
              Vice
                President

            

    

    

    

    
      	 	 	 	 	 	 	 	
              EMC
                MORTGAGE CORPORATION,

              as
                Seller and Master Servicer

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	
              /s/
                Jenna Kemp 

            
	 	 	 	 	 	 	 	
              Name:

            	
              Jenna
                Kemp

            
	 	 	 	 	 	 	 	
              Title:

            	
              Senior
                Vice President

            

    

    

    

    
      	 	 	 	 	 	 	 	
              LASALLE
                BANK NATIONAL

              ASSOCIATION,

              as
                Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	
              /s/
                Susan L. Feld 

            
	 	 	 	 	 	 	 	
              Name:

            	
              Susan
                L. Feld

            
	 	 	 	 	 	 	 	
              Title:

            	
              Assistant
                Vice President

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