Form of Stock Option Agreement



 Exhibit 10.2 
 U.S. AUTO PARTS NETWORK, INC. 
 STOCK OPTION AGREEMENT 
 RECITALS 
 A. The Board has adopted the Plan
for the purpose of retaining the services of selected Employees, non-employee members of the Board or the board of directors of any Parent or Subsidiary and consultants and other independent advisors in the service of the Corporation (or any Parent
or Subsidiary). 
 B. Optionee is to render valuable services to the Corporation (or a Parent or Subsidiary), and this Agreement is executed
pursuant to, and is intended to carry out the purposes of, the Plan in connection with the Corporation’s grant of an option to Optionee. 
 C. All capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix. 
 NOW,
THEREFORE, it is hereby agreed as follows: 
 1. Grant of Option. The Corporation hereby grants to Optionee, as of the Grant
Date, an option to purchase up to the number of Option Shares specified in the Grant Notice. The Option Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at the Exercise Price. 
 2. Option Term. This option shall have a term of ten (10) years measured from the Grant Date and shall accordingly expire at the close
of business on the Expiration Date, unless sooner terminated in accordance with Paragraph 5 or 6. 
 3. Limited
Transferability. 
 (a) This option shall be neither transferable nor assignable by Optionee other than by will or the laws of
inheritance following Optionee’s death and may be exercised, during Optionee’s lifetime, only by Optionee. However, Optionee may designate one or more persons as the beneficiary or beneficiaries of this option, and this option shall, in
accordance with such designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee’s death while holding this option. Such beneficiary or beneficiaries shall take the transferred option subject to all the
terms and conditions of this Agreement, including (without limitation) the limited time period during which this option may, pursuant to Paragraph 5, be exercised following Optionee’s death. 
 (b) If this option is designated a Non-Statutory Option in the Grant Notice, then this option may be assigned in whole or in part during Optionee’s
lifetime to the Optionee’s family members as a gift, whether directly or indirectly, or by means of a trust or partnership or otherwise, or pursuant to a qualified domestic relations order as defined in the Code or Title 1 of the Employee
Retirement Income Security Act of 1974, as amended, provided, that, if the Corporation is subject to the reporting requirements of Section 13 or 15(d) of the 







 Exchange Act, then as otherwise permitted pursuant to General Instructions A.1(a)(5) to Form S-8 under the Securities Act
of 1933, as amended, or any successor thereto. For purposes of this Agreement, unless otherwise determined by the Plan Administrator, “family member” shall have the meaning given to such term in Rule 701 promulgated under the
Securities Act, provided, that, if the Corporation is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, then it shall have the meaning given to such term in General Instructions A.1(a)(5) to Form
S-8 under the Securities Act of 1933, as amended, or any successor thereto. The assigned portion shall be exercisable only by the person or persons who acquire a proprietary interest in the option pursuant to such assignment. The terms applicable to
the assigned portion shall be the same as those in effect for this option immediately prior to such assignment. 
 4. Dates of
Exercise. This option shall become exercisable for the Option Shares in one or more installments as specified in the Grant Notice. As the option becomes exercisable for such installments, those installments shall accumulate, and the option
shall remain exercisable for the accumulated installments until the Expiration Date or sooner termination of the option term under Paragraph 5 or 6. 
 5. Cessation of Service. The option term specified in Paragraph 2 shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions
become applicable: 
 (a) Should Optionee cease to remain in Service for any reason (other than death, Disability or Misconduct) while this
option is outstanding, then Optionee (or any person or persons to whom this option is transferred pursuant to a permitted transfer under Paragraph 3) shall have a period of thirty (30) days (commencing with the date of such cessation of
Service) during which to exercise this option, but in no event shall this option be exercisable at any time after the Expiration Date. 
 (b) Should Optionee die while this option is outstanding, then the personal representative of Optionee’s estate or the person or persons to whom the option is transferred pursuant to Optionee’s will or the laws of inheritance
following Optionee’s death or to whom the option is transferred during Optionee’s lifetime pursuant to a permitted transfer under Paragraph 3 shall have the right to exercise this option. However, if Optionee dies while holding this
option and has an effective beneficiary designation in effect for this option at the time of his or her death, then the designated beneficiary or beneficiaries shall have the exclusive right to exercise this option following Optionee’s death.
Any such right to exercise this option shall lapse, and this option shall cease to be outstanding, upon the earlier of (i) the expiration of the six (6)-month period measured from the date of Optionee’s death or (ii) the
Expiration Date. 
 (c) Should Optionee cease Service by reason of Disability while this option is outstanding, then Optionee (or any person
or persons to whom this option is transferred pursuant to a permitted transfer under Paragraph 3) shall have a period of six (6) months (commencing with the date of such cessation of Service) during which to exercise this option. In no
event shall this option be exercisable at any time after the Expiration Date. 
 Note: Exercise of this option on a
date later than three (3) 

  

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months following cessation of Service due to Disability will result in loss of favorable Incentive Option treatment, unless such Disability
constitutes Permanent Disability. In the event that Incentive Option treatment is not available, this option will be taxed as a Non-Statutory Option upon exercise. 
 (d) During the limited period of post-Service exercisability, this option may not be exercised in the aggregate for more than the number of Option Shares in which Optionee is, at the time of Optionee’s cessation
of Service, vested pursuant to the Vesting Schedule specified in the Grant Notice or the special vesting acceleration provisions of Paragraph 6. Upon the expiration of such limited exercise period or (if earlier) upon the Expiration Date, this
option shall terminate and cease to be outstanding for any vested Option Shares for which the option has not been exercised. To the extent Optionee is not vested in one or more Option Shares at the time of Optionee’s cessation of Service, this
option shall immediately terminate and cease to be outstanding with respect to those shares. 
 (e) Should Optionee’s Service be
terminated for Misconduct or should Optionee otherwise engage in Misconduct while this option is outstanding, then this option shall terminate immediately and cease to remain outstanding. 
 6. Change of Control Assumption. 
 (a) If this option is assumed in connection with a Change in Control or otherwise continued in effect, then this option shall be appropriately adjusted, immediately after such Change in Control, to apply to the number and class of
securities which would have been issuable to Optionee in consummation of such Change in Control had the option been exercised immediately prior to such Change in Control, and appropriate adjustments shall also be made to the Exercise Price,
provided the aggregate Exercise Price shall remain the same. To the extent that the actual holders of the Corporation’s outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Change in Control,
the successor corporation may, in connection with the assumption of this option, substitute one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid per share of Common Stock in such Change in
Control. 
 (b) This Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise
change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
 7. Adjustment in Option Shares. Should any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or class of securities subject to this option and (ii) the
Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder. 
  

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 8. Stockholder Rights. The holder of this option shall not have any stockholder rights with
respect to the Option Shares until such person shall have exercised the option, paid the Exercise Price and become the record holder of the purchased shares. 
 9. Market Stand-Off. In connection with any underwritten public offering by the Corporation of its equity securities pursuant to an effective registration statement filed under the 1933 Act, including
the Corporation’s initial public offering, Optionee shall not sell or otherwise transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, of
any Common Stock (or other securities) of the Corporation held by Optionee (other than those included in the registration) during a period as requested by the Corporation (not to exceed one hundred ninety eight (198) days) following the
effective date of the Corporation’s public offering (the “Market Stand-Off”) , provided, that: (i) all officers and directors of the Corporation and holders of at least one percent (1%) of the
Corporation’s voting securities are bound by and have entered into similar agreements (ii) such agreement shall provide that any discretionary waiver or termination of the restrictions of such agreements by the Corporation or underwriters
shall apply to all persons pro rata based on the number of shares of Common Stock subject to such agreements and (iii) the Market Stand-Off shall in no event be applicable to any underwritten public offering effected more than two
(2) years after the effective date of the Corporation’s initial public offering. The obligations described in this shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that
may be promulgated in the future, or a registration relating solely to a transaction on Form S-4 or similar forms that may be promulgated in the future. The Corporation may impose stop-transfer instructions and may stamp each such certificate with a
legend with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of such lock up period. If requested by the Corporation and an underwriter of Common Stock (or other securities) of the
Corporation, each Optionee agrees to execute a market stand-off agreement with said underwriters in customary form consistent with the provisions of this Section 9. 
 10. Manner of Exercising Option. 
 (a) In order to exercise this option with respect to all or
any part of the Option Shares for which this option is at the time exercisable, Optionee (or any other person or persons exercising the option) must take the following actions: 
 (i) Execute and deliver to the Corporation a Purchase Agreement for the Option Shares for which the option is exercised. 
 (ii) Pay the aggregate Exercise Price for the purchased shares in one or more of the following forms: 
 (A) cash or check made payable to the Corporation; or 
  

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 (B) a promissory note payable to the Corporation, but only to the extent authorized by
the Plan Administrator in accordance with Paragraph 14. 
 Should the Common Stock be registered under Section 12 of the
1934 Act at the time the option is exercised, then the Exercise Price may also be paid as follows: 
 (C) in shares of Common
Stock held by Optionee (or any other person or persons exercising the option) for the requisite period necessary to avoid a charge to the Corporation’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise
Date; or 
 (D) to the extent the option is exercised for vested Option Shares and unless prohibited by Section 402 of
the Sarbanes Oxley Act of 2002, through payment in accordance with a brokerage transaction as permitted under the provisions of Regulation T applicable to cashless exercises promulgated by the Federal Reserve Board out of the sale proceeds available
on the settlement date of sufficient funds to cover the aggregate exercise price payable for the purchased shares plus all applicable income and employment taxes required to be withheld by the Corporation by reason of such exercise and the Optionee
(or any other person or persons exercising the option) shall concurrently provide irrevocable instructions to the Corporation to deliver the certificates for the purchased shares directly to a brokerage firm in order to complete the sale.

 (iii) Furnish to the Corporation appropriate documentation that the person or persons exercising the option (if other than
Optionee) have the right to exercise this option. 
 (iv) Execute and deliver to the Corporation such written representations
as may be requested by the Corporation in order for it to comply with the applicable requirements of applicable securities laws. 
 (v) Make appropriate arrangements with the Corporation (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all applicable income and employment tax withholding requirements applicable to the option exercise.

 (b) As soon as practical after the Exercise Date, the Corporation shall issue to or on behalf of Optionee (or any other person or persons
exercising this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto. 
  

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 11. REPURCHASE RIGHTS. ALL OPTION SHARES ACQUIRED UPON THE EXERCISE OF THIS OPTION SHALL BE
SUBJECT TO CERTAIN RIGHTS OF THE CORPORATION AND ITS ASSIGNS TO REPURCHASE THOSE SHARES IN ACCORDANCE WITH THE TERMS SPECIFIED IN THE PURCHASE AGREEMENT. 
 12. Compliance with Laws and Regulations. 
 (a) The exercise of this option and the issuance
of the Option Shares upon such exercise shall be subject to compliance by the Corporation and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq National Market,
if applicable) on which the Common Stock may be listed for trading at the time of such exercise and issuance. 
 (b) The inability of the
Corporation to obtain approval from any regulatory body having authority deemed by the Corporation to be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Corporation of any liability with
respect to the non-issuance or sale of the Common Stock as to which such approval shall not have been obtained. The Corporation, however, shall use its best efforts to obtain all such approvals. 
 13. Successors and Assigns. Except to the extent otherwise provided in Paragraphs 3 and 6, the provisions of this Agreement shall inure to
the benefit of, and be binding upon, the Corporation and its successors and assigns and Optionee, Optionee’s assigns and the legal representatives, heirs and legatees of Optionee’s estate. 
 14. Notices. Any notice required to be given or delivered to the Corporation under the terms of this Agreement shall be in writing and
addressed to the Corporation at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the address indicated below Optionee’s signature line on the Grant
Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified. 
 15. Financing. The Plan Administrator may, in its absolute discretion and without any obligation to do so, permit Optionee to pay the Exercise Price for the purchased Option Shares by delivering a
full-recourse promissory note bearing interest at a market rate and secured by those Option Shares. The payment schedule in effect for any such promissory note shall be established by the Plan Administrator in its sole discretion. 
 Note: If the Optionee is a consultant, then the promissory note delivered in payment of the Exercise Price must be secured
by collateral other than the purchased Option Shares. 
 16. Construction. This Agreement and the option evidenced hereby are
made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All decisions of the Plan Administrator with respect to any question or issue arising under 

  

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the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option. 
 17. Governing Law. The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of
California without resort to that State’s conflict-of-laws rules. 
 18. Stockholder Approval. If the Option Shares
covered by this Agreement exceed, as of the Grant Date, the number of shares of Common Stock which may be issued under the Plan as last approved by the stockholders, then this option shall be void with respect to such excess shares, unless
stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock issuable under the Plan is obtained in accordance with the provisions of the Plan. 
 19. Additional Terms Applicable to an Incentive Option. In the event this option is designated an Incentive Option in the Grant Notice, the
following terms and conditions shall also apply to the grant: 
 (a) This option shall cease to qualify for favorable tax treatment as an
Incentive Option if (and to the extent) this option is exercised for one or more Option Shares: (i) more than thirty (30) days after the date Optionee ceases to be an Employee for any reason other than death or Permanent Disability or
(ii) more than six (6) months after the date Optionee ceases to be an Employee by reason of Permanent Disability. 
 (b) This
option shall not become exercisable in the calendar year in which granted if (and to the extent) the aggregate Fair Market Value (determined at the Grant Date) of the Common Stock for which this option would otherwise first become exercisable in
such calendar year would, when added to the aggregate value (determined as of the respective date or dates of grant) of the Common Stock and any other securities for which one or more other Incentive Options granted to Optionee prior to the Grant
Date (whether under the Plan or any other option plan of the Corporation or any Parent or Subsidiary) first become exercisable during the same calendar year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate. To the extent the
exercisability of this option is deferred by reason of the foregoing limitation, the deferred portion shall become exercisable in the first calendar year or years thereafter in which the One Hundred Thousand Dollar ($100,000) limitation of this
Paragraph 19(b) would not be contravened, but such deferral shall in all events end immediately prior to the effective date of a Change in Control in which this option is not to be assumed or otherwise continued in effect, whereupon the option
shall become immediately exercisable as a Non-Statutory Option for the deferred portion of the Option Shares. 
 (c) Should Optionee hold,
in addition to this option, one or more other options to purchase Common Stock which become exercisable for the first time in the same calendar year as this option, then the foregoing limitations on the exercisability of such options as Incentive
Options shall be applied on the basis of the order in which such options are granted. 
  

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 APPENDIX 
 The following definitions shall be in effect under the Agreement: 
 A. Agreement shall mean
this Stock Option Agreement. 
 B. Board shall mean the Corporation’s Board of Directors. 
 C. Change in Control shall mean a change in ownership or control of the Corporation effected through any of the following transactions:

 (i) a merger, consolidation or other reorganization approved by the Corporation’s stockholders, unless
securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the same
proportion, by the persons who beneficially owned the Corporation’s outstanding voting securities immediately prior to such transaction, or 
 (ii) a stockholder-approved sale, transfer or other disposition of all or substantially all of the Corporation’s assets in complete liquidation or dissolution of the Corporation, or 
 (iii) the acquisition, directly or indirectly by any person or related group of persons (other than the Corporation or a person that
directly or indirectly controls, is controlled by, or is under common control with, the Corporation), of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total
combined voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s stockholders. 
 In no event shall any public offering of the Corporation’s securities be deemed to constitute a Change in Control. 
 D. Code shall mean the Internal Revenue Code of 1986, as amended. 
 E. Common
Stock shall mean the Corporation’s common stock. 
 F. Corporation shall mean U.S. Auto Parts Network, Inc., a
Delaware corporation, and any successor corporation to all or substantially all of the assets or voting stock of U.S. Auto Parts Network, Inc. which shall by appropriate action assume this option. 
 G. Disability shall mean the inability of Optionee to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment and shall be determined by the Plan Administrator on the basis of such medical 
  

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 evidence as the Plan Administrator deems warranted under the circumstances. Disability shall be deemed to constitute
Permanent Disability in the event that such Disability is expected to result in death or has lasted or can be expected to last for a continuous period of twelve (12) months or more. 
 H. Employee shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the control and
direction of the employer entity as to both the work to be performed and the manner and method of performance. 
 I. Exercise
Date shall mean the date on which the option shall have been exercised in accordance with Paragraph 9 of the Agreement. 
 J.
Exercise Price shall mean the exercise price payable per Option Share as specified in the Grant Notice. 
 K. Expiration
Date shall mean the date on which the option expires as specified in the Grant Notice. 
 L. Fair Market Value per
share of Common Stock on any relevant date shall be determined in accordance with the following provisions: 
 (i) If the
Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as the price is reported by the National Association of Securities
Dealers on the Nasdaq National Market and published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last
preceding date for which such quotation exists. 
 (ii) If the Common Stock is at the time listed on any Stock Exchange, then
the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted
in the composite tape of transactions on such exchange and published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price
on the last preceding date for which such quotation exists. 
 (iii) If the Common Stock is at the time neither listed on any
Stock Exchange nor traded on the Nasdaq National Market, then the Fair Market Value shall be determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate. 
 M. Grant Date shall mean the date of grant of the option as specified in the Grant Notice. 
  

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 N. Grant Notice shall mean the Notice of Grant of Stock Option accompanying the Agreement,
pursuant to which Optionee has been informed of the basic terms of the option evidenced hereby. 
 O. Incentive Option shall
mean an option which satisfies the requirements of Code Section 422. 
 P. Misconduct shall mean the commission of any act
of fraud, embezzlement or dishonesty by Optionee, any unauthorized use or disclosure by Optionee of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by Optionee adversely
affecting the business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude or restrict the right of the Corporation (or any Parent or Subsidiary) to discharge or
dismiss Optionee or any other person in the Service of the Corporation (or any Parent or Subsidiary) for any other acts or omissions, but such other acts or omissions shall not be deemed, for purposes of the Plan or this Agreement, to constitute
grounds for termination for Misconduct. 
 Q. 1934 Act shall mean the Securities Exchange Act of 1934, as amended. 

R. Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422. 
 S. Option Shares shall mean the number of shares of Common Stock subject to the option. 
 T. Optionee shall mean the person to whom the option is granted as specified in the Grant Notice. 
 U. Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation,
provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, 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. 
 V. Plan shall mean the Corporation’s 2006 Equity Incentive Plan. 
 W. Plan Administrator shall mean either the Board or a committee of the Board acting in its capacity as administrator of the Plan.

 X. Purchase Agreement shall mean the stock purchase agreement in substantially the form of Exhibit C to the Grant Notice.

 Y. Service shall mean the Optionee’s performance of services for the Corporation (or any Parent or Subsidiary) in the
capacity of an Employee, a non-employee member of the board of directors or an independent consultant. 
  

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 Z. Stock Exchange shall mean the American Stock Exchange or the New York Stock Exchange.

 AA. Subsidiary shall mean any entity in which, directly or indirectly through one or more intermediaries, the Corporation
has at least a 50% ownership interest or, where permissible under Code Section 409A, at least a 20% ownership interest. 
 BB.
Vesting Schedule shall mean the vesting schedule specified in the Grant Notice pursuant to which the Optionee is to vest in the Option Shares in a series of installments over his or her period of Service. 
  

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