Form of Option Agreement, 2004 Stock Plan.


 Exhibit 10.2 
  
 COST PLUS, INC. 
  
 2004 STOCK PLAN 
  
 STOCK OPTION AWARD AGREEMENT 
  
 Unless otherwise defined herein, the terms defined in the 2004 Stock Plan will have the same defined meanings in this Award Agreement. 
  

	I.	NOTICE OF STOCK OPTION GRANT 

  
 Name: 
  
 Address: 
  
 You have been
granted an option to purchase Common Stock of the Company, subject to the terms and conditions of the Plan and this Award Agreement, as follows: 
  

			
	Grant Number	  	___________________________________  
		
	Date of Grant	  	___________________________________  
		
	Vesting Commencement Date	  	___________________________________  
		
	Exercise Price per Share	  	$___________________________________
		
	Total Number of Shares Granted	  	___________________________________  
		
	Total Exercise Price	  	$___________________________________
		
	Type of Option:	  	 
	 	  	         Incentive Stock Option
		
	 	  	         Nonstatutory Stock Option
		
	Term/Expiration Date:	  	___________________________________  

  
 Vesting Schedule:

  
 Subject to accelerated vesting as set forth in the Plan,
this Option may be exercised, in whole or in part, in accordance with the following schedule: 
  
 [25% of the Shares subject to the Option will vest twelve months after the Vesting Commencement Date, and 1/48 of the Shares subject to the Option will vest each month thereafter on the same day of the month as the
Vesting Commencement Date, subject to Participant continuing to be a Service Provider through each vesting date.] 






 Termination Period: 
  
 This Option shall be exercisable for [three months] after Participant ceases to be a Service Provider, unless such
termination is due to Participant’s death or Disability, in which case this Option shall be exercisable for [one (1) year] after Participant ceases to be Service Provider. Notwithstanding the foregoing, in no event may this Option be
exercised after the Term/Expiration Date as provided above. 
  

	II.	AGREEMENT 

  

	 	A.	Grant of Option. 

  
 The Administrator hereby grants to the individual named in the Notice of Grant attached as Part I of this Agreement (the “Participant”) an
option (the “Option”) to purchase the number of Shares, as set forth in the Notice of Grant, at the exercise price per Share set forth in the Notice of Grant (the “Exercise Price”), subject to the terms and conditions of the
Plan, which is incorporated herein by reference. Subject to Section 18(c) of the Plan, in the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Award Agreement, the terms and conditions of the Plan
will prevail. 
  
 If designated in the Notice of Grant as an
Incentive Stock Option (“ISO”), this Option is intended to qualify as an Incentive Stock Option under Section 422 of the Code. However, if this Option is intended to be an Incentive Stock Option, to the extent that it exceeds the $100,000
rule of Code Section 422(d) it will be treated as a Nonstatutory Stock Option (“NSO”). 
  

	 	B.	Exercise of Option. 

  
 (a) Right to Exercise. This Option is exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Grant and the
applicable provisions of the Plan and this Award Agreement. 
  
 (b) Method of Exercise. This Option is exercisable by delivery of an exercise notice, in the form attached as Exhibit A (the “Exercise Notice”), which will state the election to exercise the Option, the number of
Shares with respect to which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan. The Exercise Notice will be
completed by Participant and delivered to the Company. The Exercise Notice will be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares together with any applicable withholding taxes. This Option will be deemed to be
exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by such aggregate Exercise Price. 
  
 No Shares will be issued pursuant to the exercise of this Option unless such issuance and exercise comply with Applicable Laws. Assuming such compliance,
for income tax purposes the Exercised Shares will be considered transferred to Participant on the date the Option is exercised with respect to such Exercised Shares. 
  

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	 	C.	Method of Payment. 

  
 Payment of the aggregate Exercise Price will be by any of the following, or a combination thereof, at the election of Participant: 
  
 1. cash; 
  
 2. check; 
  
 3. consideration received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan; or 
  
 4. surrender of other Shares which (A) in the case of Shares acquired from
the Company, either directly or indirectly, have been owned by Participant, and not subject to a substantial risk of forfeiture, for more than six months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to
the aggregate Exercise Price of the Exercised Shares. 
  

	 	D.	Non-Transferability of Option. 

  
 This Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner otherwise than by will or by the laws of descent
or distribution and may be exercised during the lifetime of Participant only by Participant. The terms of the Plan and this Award Agreement will be binding upon the executors, administrators, heirs, successors and assigns of Participant. 

 

	 	E.	Term of Option. 

  
 This Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during such term only in accordance with the Plan
and the terms of this Award Agreement. 
  

	 	F.	Tax Obligations. 

  
 1. Withholding Taxes. Participant agrees to make appropriate arrangements with the Company (or the Parent or Subsidiary employing or retaining
Participant) for the satisfaction of all Federal, state, local and foreign income and employment tax withholding requirements applicable to the Option exercise. Participant acknowledges and agrees that the Company may refuse to honor the exercise
and refuse to deliver Shares if such withholding amounts are not delivered at the time of exercise. 
  
 2. Notice of Disqualifying Disposition of ISO Shares. If the Option granted to Participant herein is an ISO, and if Participant sells or otherwise
disposes of any of the Shares acquired pursuant to the ISO on or before the later of (1) the date two years after the Grant Date, or (2) the date one year after the date of exercise, Participant will immediately notify the Company in writing of such
disposition. Participant agrees that Participant may be subject to income tax withholding by the Company on the compensation income recognized by Participant. 
  

	 	G.	Entire Agreement; Governing Law. 

  
 The Plan is incorporated herein by reference. The Plan and this Award Agreement constitute the entire agreement of the parties with respect to the subject
matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof, and may not be modified adversely to Participant’s interest except by means of a
writing signed by the Company and Participant. This Award Agreement is governed by the internal substantive laws, but not the choice of law rules, of California. 
  

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	 	H.	NO GUARANTEE OF CONTINUED SERVICE. 

  
 PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER
AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER). PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING
SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE, CONSULTANT OR NON-EMPLOYEE DIRECTOR FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT INTERFERE WITH PARTICIPANT’S
RIGHT OR THE COMPANY’S RIGHT TO TERMINATE PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE. 
  
 [Remainder of Page Intentionally Left Blank] 
  

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 By Participant’s signature and the signature of the Company’s representative below, Participant
and the Company agree that this Option is granted under and governed by the terms and conditions of the Plan and this Award Agreement. Participant has reviewed the Plan and this Award Agreement in their entirety, has had an opportunity to obtain the
advice of counsel prior to executing this Award Agreement and fully understands all provisions of the Plan and Award Agreement. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions relating to the Plan and Award Agreement. Participant further agrees to notify the Company upon any change in the residence address indicated below. 
  

			
	PARTICIPANT:	 	COST PLUS, INC.
	  
  

	 	  
  


	Signature	 	By
	  
  

	 	  
  


	Print Name	 	Title
	  
  

	 	 
	Residence Address	 	 
	  

	 	 

  

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 EXHIBIT A 
  
 COST PLUS, INC. 
  
 2004 STOCK PLAN 
  
 EXERCISE NOTICE 
  
 Cost Plus, Inc. 
 200 Fourth Street 
 Oakland, CA 94607 
  
 Attention: [Title] 
  
 1.
Exercise of Option. Effective as of today,                     ,
            , the undersigned (“Purchaser”) hereby elects to purchase
                     shares (the “Shares”) of the Common Stock of Cost Plus, Inc. (the “Company”) under and pursuant to
the 2004 Stock Plan (the “Plan”) and the Award Agreement dated,              (the “Award Agreement”). The purchase price for the Shares will be
$                    , as required by the Award Agreement. 
  
 2. Delivery of Payment. Purchaser herewith delivers to the Company the full purchase price for the Shares any
required withholding taxes to be paid in connection with the exercise of the Option. 
  
 3. Representations of Purchaser. Purchaser acknowledges that Purchaser has received, read and understood the Plan and the Award Agreement and agrees to abide by and be bound by their terms and conditions.

  
 4. Rights as Shareholder. Until the issuance (as
evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the Shares, no right to vote or receive dividends or any other rights as a shareholder will exist with respect to the Optioned
Stock, notwithstanding the exercise of the Option. The Shares so acquired will be issued to Participant as soon as practicable after 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 of issuance, except as provided in Section 16 of the Plan. 
  
 5. Tax Consultation. 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 with 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. 






 6. Entire Agreement; Governing Law. The Plan and Award Agreement are incorporated herein by
reference. This Agreement, the Plan and the Award Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Purchaser
with respect to the subject matter hereof, and may not be modified adversely to the Purchaser’s interest except by means of a writing signed by the Company and Purchaser. This agreement is governed by the internal substantive laws, but not the
choice of law rules, of California. 
  

			
	Submitted by:	  	Accepted by:
		
	 PURCHASER:
  
  

	  	 COST PLUS, INC.
  
  


	 Signature
  
  

	  	 By
  
  


	Print Name	  	Its
		
	Address:	  	Address:
	  

	  	200 Fourth Street
	  

	  	Oakland, CA 94607
	 	  	  
  


	 	  	Date Received

  

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