0001104659-10-013131 Sample Contracts

NONQUALIFIED STOCK OPTION AGREEMENT
Nonqualified Stock Option Agreement • March 9th, 2010 • KKR KFC Investments LLC • Finance services • New York

THIS AGREEMENT (the “Agreement”), is made effective as of the 12th day of August, 2004 (hereinafter called the “Date of Grant”), between KKR Financial Corp., a Maryland corporation (hereinafter called the “Company”), and KKR Financial Advisors LLC (hereinafter called the “Participant”):

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KKR FINANCIAL LLC
Original Agreement • March 9th, 2010 • KKR KFC Investments LLC • Finance services

This distribution and transfer is made subject to the terms and conditions of the Option Agreements and the Plan. By KKR KFC’s acceptance of this distribution and transfer, evidenced by KKR KFC’s signature below, KKR KFC agrees to be bound by the Option Agreements and the Plan to the extent applicable, as if KKR KFC was the optionee thereunder. The Company and KKR KFC acknowledge and understand that any reference in the Plan or the

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