Document:

Exhibit 10.1

 

COPART, INC.

 

STAND-ALONE STOCK OPTION AWARD AGREEMENT

 

NOTICE OF STOCK OPTION GRANT

 

Participant Name:

 

Address:

 

You
have been granted a Nonstatutory Stock Option to purchase Common Stock of
Copart, Inc. (the “Company”), subject to the terms and conditions of this
Stand-Alone Stock Option Agreement (the “Option Agreement”), as follows:

 

	
  Grant Number

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date of Grant

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exercise Price
  per Share

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Number of
  Shares Granted

  	
   

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Exercise
  Price

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Term/Expiration
  Date:

  	
   

  	
   

  	
   

  

 

Vesting
Schedule:

 

Subject
to any acceleration provisions set forth in this Option Agreement, this Option
may be exercised, in whole or in part, in accordance with the following
schedule:

 

One
fifth (1/5th) of
the Shares subject to the Option shall vest on the one-year anniversary of the
Date of Grant and one sixtieth (1/60th)
of the Shares subject to the Option shall vest each month thereafter on the
same day of the month as the Date of Grant, subject to Participant continuing
to be a Service Provider through each such date.

 

Notwithstanding
the foregoing and anything contrary in this Option Agreement, if (i) prior
to a Change in Control, Participant’s status as a Service Provider is
terminated by the Company without Cause, or (ii) upon or following a
Change in Control, Participant’s status as a Service Provider is terminated (A) by
the Company (any termination described in clauses (i) and (ii), a “Covered
Termination”), successor corporation or the entity to whom Participant is
providing services following a transaction (the “Employer”) without Cause, or (B) by
Participant for Good Reason, then one hundred percent (100%) of Participant’s
Shares subject to the Option shall immediately vest and become exerciseable.

 

Termination
Period:

 

As set
forth in Section 9 of this Option Agreement, this Option will be
exercisable for twelve (12) months after Participant ceases to be a Service
Provider, unless such termination is a Covered Termination, in which case this
Option will remain exercisable through the Term/Expiration Date as provided
above. Notwithstanding the foregoing sentence, in no event may this Option be
exercised after the Term/Expiration Date as provided above and may be subject
to earlier termination as provided in Section 11(c) of this Option
Agreement.

 

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 Stock Option Grant, attached hereto as Exhibit A,
which is made a part of this document. Participant has reviewed this Option
Agreement in its entirety, has had an opportunity to obtain the advice of
counsel prior to executing this Option Agreement and fully understands all provisions
of the Option Agreement. Participant hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Administrator upon
any questions relating to the Option Agreement. Participant further agrees to
notify the Company upon any change in the residence address indicated below.

 

 

	
  PARTICIPANT:

  	
   

  	
  COPART,
  INC.

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  By

  
	
   

  	
   

  	
   

  
	
  Print
  Name

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  Resident
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

2

 

EXHIBIT A

 

TERMS AND CONDITIONS OF STOCK OPTION GRANT

 

1.                         Definitions. As used herein, the following
definitions will apply:

 

(a)                                  “Administrator” means the Board or any of
its committees as will be administering the Option, in accordance with Section 17
of the Option Agreement.

 

(b)                                 “Option Agreement” means this Option
agreement between the Company and Participant evidencing the terms and
conditions of this Option.

 

(c)                                  “Board” means the Board of Directors of the
Company.

 

(d)                                 “Cause” means (i) any act of
dishonesty made by Participant in connection with Participant’s
responsibilities as a Service Provider; (ii) Participant’s conviction of,
or plea of nolo contendere to, a felony or any crime involving fraud,
embezzlement or any other act of moral turpitude; (iii) Participant’s
gross misconduct; (iv) willful and continued failure of Participant to
substantially perform his or her principal duties and/or obligations of
employment to his or her Employer; or (v) Participant’s unauthorized use
or disclosure of any proprietary information or trade secrets of the Company or
any other party to whom Participant owes an obligation of nondisclosure as a
result of Participant’s relationship with the Company.

 

(e)                                  “Change in Control” means the occurrence of
any of the following events:

 

(i)                                  A
change in the ownership of the Company which occurs on the date that any one
person, or more than one person acting as a group, (“Person”) acquires
ownership of the stock of the Company that, together with the stock held by
such Person, constitutes more than 50% of the total voting power of the stock
of the Company; provided, however, that for purposes of this subsection (i),
the acquisition of additional stock by any one Person, who is considered to own
more than 50% of the total voting power of the stock of the Company will not be
considered a Change in Control; or

 

(ii)                               A
change in the effective control of the Company which occurs on the date that a
majority of members of the Board is replaced during any twelve (12) month
period by Directors whose appointment or election is not endorsed by a majority
of the members of the Board prior to the date of the appointment or election.
For purposes of this clause (ii), if any Person is considered to effectively
control the Company, the acquisition of additional control of the Company by
the same Person will not be considered a Change in Control; or

 

(iii)                            A change in the ownership
of a substantial portion of the Company’s assets which occurs on the date that
any Person acquires (or has acquired during the twelve (12) month period ending
on the date of the most recent acquisition by such person or persons) assets
from the Company that have a total gross fair market value equal to or more
than 50% of the total gross fair market value of all of the assets of the
Company immediately prior to such acquisition or acquisitions; provided,
however, that for purposes of this subsection (iii), the following will not
constitute a change in the ownership of a substantial portion of the Company’s
assets: (A) a transfer to an entity that is controlled by the Company’s
stockholders immediately after the transfer, or (B) a transfer of assets
by the Company to: (1) a stockholder of the Company (immediately before
the asset transfer) in exchange for or with respect to the Company’s stock, (2) an
entity, 50% or more of the total value or voting power of which is owned,
directly or indirectly, by the Company, (3) a Person, that owns, directly
or indirectly, 50% or more of the total value or voting power of all the
outstanding stock of the Company, or (4) an entity, at least 50% of the
total value or voting power of which is owned, directly or indirectly, by a
Person described in this subsection (iii)(B)(3). For purposes of this
subsection (iii), gross fair market value means the value of the assets of the
Company, or the value of the assets being disposed of, determined without
regard to any liabilities associated with such assets.

 

For purposes of this Section 1(e), persons will
be considered to be acting as a group if they are owners of a corporation that
enters into a merger, consolidation, purchase or acquisition of stock, or
similar business transaction with the Company.

 

(f)                                    “Code” means the Internal Revenue Code of
1986, as amended. Any reference to a section of the Code herein will be a reference
to any successor or amended section of the Code.

 

(g)                                 “Common Stock” means the common stock of
the Company.

 

3

 

(h)                                 “Company” means Copart, Inc., a
California corporation, or any successor thereto.

 

(i)                                     “Consultant” means any person, including an
advisor, engaged by the Company or a Parent or Subsidiary to render services to
such entity.

 

(j)                                     “Director” means a member of the Board.

 

(k)                                  “Disability” means total and permanent
disability as defined in Section 22(e)(3) of the Code.

 

(l)                                     “Employee” means any person, including
Officers and Directors, employed by the Company or any Parent or Subsidiary of
the Company. Neither service as a Director nor payment of a director’s fee by
the Company will be sufficient to constitute “employment” by the Company.

 

(m)                               “Fair Market Value” means, as of any date,
the value of the Common Stock as the Administrator may determine in good faith
by reference to the price of such stock on any established stock exchange or a
national market system on the day of determination if the Common Stock is so
listed on any established stock exchange or a national market system. If the
Common Stock is not listed on any established stock exchange or a national
market system, the value of the Common Stock will be determined as the
Administrator may determine in good faith.

 

(n)                                 “Good Reason” means, within thirty (30)
days following the expiration of any Company cure period (discussed below)
following the occurrence of one or more of the following without Participant’s
consent: (i) the assignment, reduction or removal of Participant’s duties
or position, either of which results in a material diminution in Participant’s
authority, duties or responsibilities with the Company in effect immediately prior
to such assignment, reduction or removal; (ii) a material reduction by the
Company of Participant’s base salary as in effect immediately prior to such
reduction; or (iii) the material change in geographic location of
Participant’s principal place of performing his or her duties as a Service
Provider of the Company by more than fifty (50) miles. In order for an event to
qualify as Good Reason, Participant must not terminate as a Service Provider
without first providing the Company with written notice of the acts or
omissions constituting the grounds for Good Reason within ninety (90) days of
the initial existence of the grounds for “Good Reason” and a reasonable cure
period of not less than thirty (30) days following the date of such notice.

 

(o)                                 “Nonstatutory Stock Option” means an Option
that by its terms does not qualify or is not intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and
the regulations promulgated thereunder.

 

(p)                                 “Notice of Grant” means the portion of this
Option Agreement to which these Terms and Conditions of Stock Option Grant are
attached.

 

(q)                                 “Option” means this option to purchase
shares of Common Stock granted pursuant to this Option Agreement.

 

(r)                                    “Parent” means a “parent corporation,”
whether now or hereafter existing, as defined in Section 424(e) of
the Code.

 

(s)                                  “Participant” means the person named in the
Notice of Grant or such person’s successor.

 

(t)                                    “Service Provider” means an Employee,
Director, or Consultant.

 

(u)                                 “Share” means a share of the Common Stock,
as adjusted in accordance with Section 11 of this Option Agreement.

 

(v)                                 “Subsidiary” means a “subsidiary
corporation,” whether now or hereafter existing, as defined in Section 424(f) of
the Code.

 

2.                         Grant
of Option. The Company hereby grants to the Participant this Option to
purchase the number of Shares 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 all of the
terms and conditions in this Option Agreement.

 

3.                         Vesting Schedule. Except as provided in Section 4,
the Option awarded by this Option Agreement will vest in accordance with the
vesting provisions set forth in the Notice of Grant. Shares scheduled to vest
on a certain date or upon the occurrence of a certain condition will not vest
in Participant in accordance with any of the provisions of this Option
Agreement, unless Participant will have been continuously a Service Provider
from the Date of Grant until the date such vesting occurs.

 

4

 

4.                         Administrator Discretion. The
Administrator, in its discretion, may accelerate the vesting of the balance, or
some lesser portion of the balance, of the unvested Option at any time. If so
accelerated, such Option will be considered as having vested as of the date
specified by the Administrator.

 

5.                         Exercise of Option.

 

(a)                      Right to Exercise. 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 terms of this Option
Agreement.

 

(b)                     Method of Exercise. This Option is
exercisable by delivery of an exercise notice, in the form attached as Exhibit B
(the “Exercise Notice”) or in a
manner and pursuant to such procedures as the Administrator may determine,
which will state the election to exercise the Option, the number of Shares in
respect of which the Option is being exercised (the “Exercised Shares”), and such other representations and
agreements as may be required by the Company. 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 tax withholding. 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.

 

6.                         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.

 

(a)                      cash;

 

(b)                     check;

 

(c)                      consideration
received by the Company under a formal cashless exercise program adopted by the
Company;

 

(d)                     by
net exercise whereby the Option may be exercised in full or in part by
surrendering a portion of the Option as payment of the aggregate Exercise Price
per Share for the number of Shares subject to the Option to be exercised. The
number of Shares subject to the Option that would be surrendered in payment of
the Exercise Price would be determined by multiplying the number of Shares to
be exercised by the per Share Exercise Price, and then dividing the product
thereof by an amount equal to the per Share Fair Market Value on the date of
exercise. If the Fair Market Value of the Shares subject to the portion of the
Option that is surrendered pursuant to a net exercise exceeds the aggregate
Exercise Price of the Exercised Shares, the excess will be paid to the
Participant in cash.

 

(e)                      surrender
of other Shares which have a Fair Market Value on the date of surrender equal
to the aggregate Exercise Price of the Exercised Shares, provided that
accepting such Shares, in the sole discretion of the Administrator, will not
result in any adverse accounting consequences to the Company.

 

7.                         Tax Obligations.

 

(a)                      Tax Withholding. Notwithstanding any
contrary provision of this Option Agreement, no certificate representing the
Shares will be issued to Participant, unless and until satisfactory
arrangements (as determined by the Administrator) will have been made by
Participant with respect to the payment of income, employment and other taxes
which the Company determines must be withheld with respect to such Shares. To
the extent determined appropriate by the Company in its discretion, it will
have the right (but not the obligation) to satisfy any tax withholding
obligations by reducing the number of Shares otherwise deliverable to
Participant. If Participant fails to make satisfactory arrangements for the
payment of any required tax withholding obligations hereunder at the time of
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.

 

(b)                     Code Section 409A. Under Code Section 409A,
an option that vests after December 31, 2004 that was granted with a per
Share exercise price that is determined by the Internal Revenue Service (the “IRS”) to be less than the Fair Market
Value of a Share on the date of grant (a “Discount
Option”) may be considered “deferred compensation.” A Discount
Option may result in (i) income recognition by Participant prior to the
exercise of the option, (ii) an additional twenty percent (20%) federal
income tax, and (iii) potential penalty and interest charges. The Discount
Option may also result in additional state income, penalty and interest charges
to Participant. Participant acknowledges that the Company cannot and has not
guaranteed that the IRS will agree that the per Share exercise price of this
Option equals or exceeds the Fair Market Value of a Share on the Date of Grant
in a later examination. Participant agrees that if the IRS determines that the
Option was granted with a per Share exercise price that was less than the Fair
Market Value of a Share on the date of grant, Participant will be solely
responsible for Participant’s costs related to such a determination.

 

5

 

8.                         Rights as Stockholder. Neither Participant
nor any person claiming under or through Participant will have any of the
rights or privileges of a stockholder of the Company in respect of any Shares
deliverable hereunder unless and until certificates representing such Shares
will have been issued, recorded on the records of the Company or its transfer
agents or registrars, and delivered to Participant. After such issuance,
recordation and delivery, Participant will have all the rights of a stockholder
of the Company with respect to voting such Shares and receipt of dividends and
distributions on such Shares.

 

9.                         Termination of Employment. If Participant
ceases to be a Service Provider, the Option will remain exercisable for twelve
(12) months, unless such termination is the result of a Covered Termination, in
which case the Option will remain exercisable through the Term/Expiration Date
as set forth in the Notice of Grant to the extent the Option is vested on the
date of termination (but in no event later than the Term/Expiration Date as set
forth in the Notice of Grant), and subject to earlier termination as set forth
in Section 11(c). Unless otherwise provided by the Administrator, if on
the date of termination Participant is not vested as to the entire Option, the
Shares covered by the unvested portion of the Option will terminate. If after
termination Participant does not exercise the Option within the time specified
herein, the Option will terminate.

 

10.                   Leaves of Absence. Unless the
Administrator provides otherwise, vesting of the Option granted hereunder will
be suspended during any unpaid leave of absence. Participant will not cease to
be an Employee in the case of (i) any leave of absence approved by the
Company, or (ii) transfers between locations of the Company or between the
Company, its Parent, or any Subsidiary.

 

11.                   Adjustments; Dissolution or Liquidation; Merger or
Change in Control.

 

(a)                      Adjustments. In the event that any
dividend or other distribution (whether in the form of cash, Shares, other
securities, or other property), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, or exchange of Shares or other securities of the Company, or other
change in the corporate structure of the Company affecting the Shares occurs,
the Administrator, in order to prevent diminution or enlargement of the
benefits or potential benefits intended to be made available under the Option
Agreement, will adjust the number, class, and price of Shares covered by the
Option.

 

(b)                     Dissolution or Liquidation. In the event
of the proposed dissolution or liquidation of the Company, the Administrator
will notify Participant as soon as practicable prior to the effective date of
such proposed transaction. To the extent an Option has not been previously
exercised, the Option will terminate immediately prior to the consummation of
such proposed action.

 

(c)                      Change in Control. In the event of a
merger or Change in Control, the Option will be treated as the Administrator
determines, including, without limitation, that the Option will be assumed or
an equivalent option substituted by the successor corporation or a Parent or
Subsidiary of the successor corporation (the “Successor Corporation”).

 

In the event that the Successor Corporation does not
assume or substitute for the Option, Participant will fully vest in and have
the right to exercise all his or her outstanding Option, including Shares as to
which the Option would not otherwise be vested or exercisable. In addition, if
the Option is not assumed or substituted for in the event of a Change in
Control, the Administrator will notify Participant in writing or electronically
that the Option will be fully vested and exercisable for a period of time
determined by the Administrator in its sole discretion, and the Option will
terminate upon the expiration of such period.

 

For the purposes of this subsection (c), the Option
will be considered assumed if, following the Change in Control, the Option
confers the right to purchase or receive, for each Share subject to the Option
immediately prior to the Change in Control, the consideration (whether stock,
cash, or other securities or property) received in the merger or Change in
Control by holders of Common Stock for each Share held on the effective date of
the transaction (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration received in the Change
in Control is not solely common stock of the Successor Corporation, the
Administrator may, with the consent of the Successor Corporation, provide for
the consideration to be received upon the exercise of an Option, for each Share
subject to the Option, to be solely common stock of the Successor Corporation
equal in fair market value to the per share consideration received by holders
of Common Stock in the Change in Control.

 

Notwithstanding anything in this subsection (c) to
the contrary, an Option that vests, is earned or paid-out upon the satisfaction
of one or more performance goals will not be considered assumed if the Company
or its successor modifies any of such performance goals without Participant’s
consent; provided, however, a modification to such performance goals only to
reflect the Successor Corporation’s post-Change in Control corporate structure
will not be deemed to invalidate an otherwise valid Option assumption.

 

6

 

12.                   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 (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING
PARTICIPANT) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION
OR ACQUIRING SHARES HEREUNDER. PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT
THIS AWARD AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING
SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF
CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY
PERIOD, OR AT ALL, AND WILL NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT
OR THE RIGHT OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING
PARTICIPANT) TO TERMINATE PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER AT
ANY TIME, WITH OR WITHOUT CAUSE.

 

13.                   Address for Notices. Any notice to be
given to the Company under the terms of this Option Agreement will be addressed
to the Company, in care of its General Counsel at Copart, Inc., 4665
Business Center Drive, Fairfield, California, 94534, or at such other address
as the Company may hereafter designate in writing.

 

14.                   Non-Transferability of Option. This Option
may not be transferred 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.

 

15.                   Binding Agreement. Subject to the
limitation on the transferability of this grant contained herein, this Option
Agreement will be binding upon and inure to the benefit of the heirs, legatees,
legal representatives, successors and assigns of the parties hereto.

 

16.                   Additional Conditions to Issuance of Stock.
If at any time the Company will determine, in its discretion, that the listing,
registration or qualification of the Shares upon any securities exchange or
under any state or federal law, or the consent or approval of any governmental
regulatory authority is necessary or desirable as a condition to the issuance of
Shares to Participant (or his or her estate), such issuance will not occur
unless and until such listing, registration, qualification, consent or approval
will have been effected or obtained free of any conditions not acceptable to
the Company. The Company will make all reasonable efforts to meet the
requirements of any such state or federal law or securities exchange and to
obtain any such consent or approval of any such governmental authority.
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.

 

17.                   Administrator Authority. The Administrator
will have the power to interpret this Option Agreement and to adopt such rules for
the administration, interpretation and application of the Option Agreement as
are consistent therewith and to interpret or revoke any such rules (including,
but not limited to, the determination of whether or not any Shares subject to
the Option have vested). The Administrator has full authority and discretion to
administer this Option Agreement, including but not limited to the authority
to: (i) modify or amend the Option (subject to Section 21 of this
Option Agreement), including, but not limited to, the discretionary authority
to extend the post-termination exercise period of the Option, (ii) authorize
any person to execute on behalf of the Company any instrument required to
effect the grant or amendment of the Option previously granted or amended by
the Administrator, and (iii) provide for the transferability of the
Option. All actions taken and all interpretations and determinations made by
the Administrator in good faith will be final and binding upon Participant, the
Company and all other interested persons. No member of the Administrator will
be personally liable for any action, determination or interpretation made in
good faith with respect to this Option Agreement.

 

18.                   Electronic Delivery. The Company may, in
its sole discretion, decide to deliver any documents related to the Option by
electronic means or request Participant’s consent by electronic means.
Participant hereby consents to receive such documents by electronic delivery
through any on-line or electronic system established and maintained by the
Company or another third party designated by the Company.

 

19.                   Captions. Captions provided herein are for
convenience only and are not to serve as a basis for interpretation or
construction of this Option Agreement.

 

20.                   Agreement Severable. In the event that any
provision in this Option Agreement will be held invalid or unenforceable, such
provision will be severable from, and such invalidity or unenforceability will
not be construed to have any effect on, the remaining provisions of this Option
Agreement.

 

21.                   Modifications to the Agreement. This
Option Agreement constitutes the entire understanding of the parties on the
subjects covered. Participant expressly warrants that he or she is not
accepting this Option Agreement in reliance on any promises, representations,
or inducements other than those contained herein. Modifications to this Option
Agreement can be 

 

7

 

made only in an express written contract executed by a
duly authorized officer of the Company. Notwithstanding anything to the
contrary in this Option Agreement, the Company reserves the right to revise
this Option Agreement as it deems necessary or advisable, in its sole
discretion and without the consent of Participant, to comply with Code Section 409A
or to otherwise avoid imposition of any additional tax or income recognition
under Section 409A of the Code in connection to this Option.

 

22.                   Governing Law. This Option Agreement will
be governed by the laws of the State of California, without giving effect to
the conflict of law principles thereof. For purposes of litigating any dispute
that arises under this Option or this Option Agreement, the parties hereby
submit to and consent to the jurisdiction of the State of California, and agree
that such litigation will be conducted in the courts of Solano County,
California, or the federal courts for the United States for the Northern
District of California, and no other courts, where this Option is made and/or
to be performed.

 

8

 

EXHIBIT B

 

COPART, INC.

 

STAND-ALONE STOCK OPTION AGREEMENT

 

EXERCISE NOTICE

 

Copart, Inc.

4665 Business Center Drive

Fairfield, CA 94534

 

Attention
[                ]

 

1.                         Exercise of Option. Effective as of today,
                        ;
          ,  the undersigned (“Purchaser”) hereby elects
to purchase
              
shares (the “Shares”) of the Common Stock of Copart, Inc. (the “Company”)
under and pursuant to the Stand-Alone Stock Option Agreement dated
                              
(the “Option Agreement”). The purchase price for the Shares will be
                  ,
as required by the Option Agreement.

 

2.                         Delivery of Payment. Purchaser herewith
delivers to the Company the full purchase price of the Shares and any required
tax withholding 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 Option
Agreement and agrees to abide by and be bound by their terms and conditions.

 

4.                         Rights as Stockholder. 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 stockholder will exist with respect
to the Shares subject to the Option, 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 11 of the Option Agreement.

 

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
Option Agreement is incorporated herein by reference. This Exercise Notice and
the Option 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
Option Agreement is governed by the internal substantive laws, but not the
choice of law rules, of the State of California.

 

	
  Submitted by:

  	
   

  	
  Accepted by:

  
	
   

  	
   

  	
   

  
	
  PURCHASER:

  	
   

  	
  COPART, INC.

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  By

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date Received

  

 

9Exhibit 10(h)

 

SUMMARY
DESCRIPTION OF TRUSTEES’ COMPENSATION

 

The compensation paid to
each Individual Trustee and the Corporate Trustee is set forth in the Amendment
to the Agreement of Trust, dated as of October 25, 1982 (the “Amendment”).  The Amendment is filed as Exhibit 3(a) to
the Form 10-K.

 

Pursuant to the Amendment,
each Individual Trustee receives at least $20,000 in annual compensation for
services as Trustee.  Each year, annual
Trustee compensation is adjusted up or down (but not below $20,000) in
accordance with changes from the November 1981 level of 295.5 (the “1981
Escalation Level”) in the All Commodities Producer Price Index (with 1967 = 100
as a base).  The All Commodities Producer
Price Index is published by the U.S. Department of Labor.  The adjustment is made at the end of each
fiscal year and is calculated on the basis of the proportion between (a) the
level of such index for the November preceding the end of such fiscal
year, and (b) the 1981 Escalation Level. 
Each of the Individual Trustees received $35,995 in cash compensation
for services to the Trust during the fiscal year ended January 31, 2009.

 

Also pursuant to the
Amendment, Deutsche Bank Trust Company Americas, as the Corporate Trustee,
receives annual compensation in an amount equal to the greater of (i) $20,000,
or such other amount determined in accordance with the adjustments described in
the preceding paragraph, or (ii) one quarter of one percent (1/4 of 1%) of
the Trust Moneys, exclusive of proceeds of sale of any part of the Trust Estate
(as such terms are defined in the Agreement of Trust), received by the Trustees
and distributed to Trust Unitholders. 
The Corporate Trustee earned $94,628 in cash compensation pursuant to
this provision for the fiscal year ended January 31, 2009.

 

Additionally, each year the Corporate Trustee
receives $62,500 (or more, if unanimously approved by the Individual Trustees)
to cover clerical and administrative services to Mesabi Trust other than
services customarily performed by a registrar or transfer agent.  In fiscal year 2009, the Trust paid the
Corporate Trustee $62,500 for such services.

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