Exhibit 10.2.1

 

CONN’S, INC.

2003 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

 

NON-QUALIFIED STOCK OPTION AGREEMENT

 

THIS NON-QUALIFIED STOCK OPTION AGREEMENT (the “Agreement”) is made this     
day of                     , 2004, between CONN’S, INC., a Delaware corporation
(the “Company”), and             , a Non-Employee Director of the Company (the
“Optionee”). All capitalized terms not otherwise defined herein shall have the
meaning set forth in the Conn’s, Inc. 2003 Non-Employee Director Stock Option
Plan (the “Plan”).

 

W I T N E S S E T H :

 

WHEREAS, the Company desires to carry out the purposes of the Plan by affording
the Optionee the opportunity to purchase shares of Company common stock
(“Shares”);

 

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth
and for other good and valuable consideration, the parties hereto agree as
follows:

 

1. Grant of Option. The Company hereby grants to Optionee the right and option
(the “Option”) to purchase an aggregate of              Shares, such Shares
being subject to adjustment as provided in Paragraph 7, on the terms and
conditions herein set forth. This Option is not intended to qualify as an
“incentive stock option” within the meaning of Section 422 of the Code.

 

2. Term of Option. This Option shall remain exercisable until the earlier to
occur of              or three (3) years after the termination of the Optionee’s
service on the Board.

 

3. Purchase Price. The purchase price of the Shares shall be $             per
Share.

 

4. Exercise of Option. Unless this Option has expired as provided in Paragraph
2, this Option may be exercised from time to time after the date first set forth
above (the “Date of Grant”) to the extent of Shares that have vested in
accordance with the vesting schedule set forth below. The Optionee’s right to
exercise the Option accrues only in accordance with the following vesting
schedule except as otherwise provided in Paragraph 6.

 

Vesting Date

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Portion of Shares that are Vested on and After

the Vesting Date and Before the Next Vesting Date

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_________________________

  33.33%

_________________________

  33.33%

_________________________

  33.33%

 

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5. Manner of Exercise, Payment of Purchase Price.

 

(a) Subject to the terms and conditions of this Agreement, the Option shall be
exercised by written notice to the Chief Financial Officer of the Company at its
principal office. Such notice shall state the election to exercise the Option
and specify the number of Shares to be purchased. Such notice of exercise shall
be signed by Optionee and shall be irrevocable when given.

 

(b) The notice of exercise shall be accompanied by full payment of the purchase
price for the Shares to be purchased. The purchase price may be paid by cash or
check or any combination thereof.

 

(c) Upon receipt of the purchase price, and subject to the terms of Paragraph
11, the certificate or certificates representing the Shares purchased shall be
registered in the name of the person or persons so exercising the Option. If the
Option shall be exercised by Optionee and, if Optionee shall so request in the
notice exercising the Option, the Shares shall be registered in the name of
Optionee and his spouse as joint tenants with right of survivorship, and shall
be delivered as provided above to or upon the written order of the person or
persons exercising the Option. All Shares that shall be purchased upon the
exercise of the Option as provided herein shall be fully paid and nonassessable.

 

6. Acceleration of Vesting and Exercise Dates. The other provisions of this
Agreement notwithstanding and pursuant to Paragraph 17 of the Plan:

 

(a) In the event of a proposed dissolution or liquidation of the Company and at
the discretion of the Administrator, this Option may be immediately exercised
for the entire number of Shares covered hereby until fifteen (15) days prior to
such dissolution or liquidation;

 

(b) In the event of a Merger Transaction in which this Option shall not be
assumed or an equivalent option issued as a substitute by a successor entity,
the Administrator shall notify the Optionee in writing that this Option shall be
exercisable for the entire number of Shares covered hereunder for a period of
fifteen (15) days from the date of such notice; or

 

(c) In the event of a Merger Transaction that constitutes a Change of Control in
which this Option is assumed or an equivalent option is issued by a successor
entity, an Involuntary Termination of the Optionee within one (1) year after the
effective date of the Change of Control shall cause this Option or the
equivalent substitute option to be immediately exercisable for the full number
of Shares covered hereunder.

 

7. Adjustments of Shares Subject to Option. The Shares subject to the Option
shall be adjusted from time to time as set forth in Paragraph 17 of the Plan.
The determination of any such adjustment by the Committee shall be final,
binding and conclusive.

 

8. No Contract. This Agreement does not constitute a contract for employment or
service.

 

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9. Rights as Shareholder. This Option shall not entitle Optionee to any rights
of a shareholder of the Company or to any notice of proceedings of the Company
with respect to any Shares issuable upon exercise of this Option unless and
until the Option has been exercised for such Shares and such Shares have been
registered in the Optionee’s name upon the stock records of the Company.

 

10. Restrictions on Exercise. This Option may not be exercised until such time
as the Plan has been approved by the shareholders of the Company, or 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
Law.

 

11. Restriction on Issuance of Shares. The Company shall not be required to
issue or deliver any certificates for Shares purchased upon the exercise of an
Option prior to: (i) the obtaining of any approval from any governmental agency
which the Company shall, in its sole discretion, determine to be necessary or
advisable; (ii) the completion of any registration or other qualification of
such Shares under any state or federal law or ruling or regulation of any
governmental body which the Company shall, in its sole discretion, determine to
be necessary or advisable; and (iii) the determination by the Committee that
Optionee has tendered to the Company any federal, state or local tax owed by
Optionee as a result of exercising the Option when the Company has a legal
liability to satisfy such tax. In addition, if the Common Stock reserved for
issuance upon the exercise of Options shall not then be registered under the
Securities Act of 1933, the Company may upon Optionee’s exercise of an Option,
require Optionee or his permitted transferee to represent in writing that the
Shares being acquired are for investment and not with a view to distribution,
and may mark the certificate for the Shares with a legend restricting transfer
and may issue stop transfer orders relating to such certificate to the Company’s
transfer agent (if applicable).

 

12. Lapse of Option. This Agreement shall be null and void in the event Optionee
shall fail to sign and return a counterpart hereof to the Company within thirty
(30) days of its delivery to Optionee.

 

13. Binding Effect. This Agreement shall be binding upon the heirs, executors,
administrators and successors of the parties hereto.

 

14. Governing Instrument and Entire Agreement. This Option and any Shares issued
hereunder shall in all respects be governed by the terms and provisions of the
Plan. In the event of a conflict between the terms of this Agreement and the
terms of the Plan (a copy of which is attached), the terms of the Plan shall
control. There are no oral agreements between the parties relating to the
subject matter hereof, and this Agreement and the terms of the Plan constitute
the entire agreement of the parties with respect to the subject matter hereof.
This Agreement may not be amended except by written agreement executed by the
Company and Optionee.

 

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CONN’S, INC.

   

By:

 

 

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Name:

 

Thomas J. Frank

   

Title:

 

Chairman and Chief Executive Officer

Accepted and Agreed:

       

OPTIONEE:

       

 

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Date:

 

 

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Optionee’s Printed Name

       

 

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