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                                                                    EXHIBIT 10.1

                          CARIBOU COFFEE COMPANY, INC.
                             1994 STOCK AWARDS PLAN

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                          CARIBOU COFFEE COMPANY, INC.
                              1994 STOCK AWARD PLAN

      Section 1: Purpose. The purpose of the 1994 Stock Award Plan is to induce
Caribou Coffee Company, Inc. key employees and certain non-employee service
providers to continue to provide valuable services to Caribou Coffee Company,
Inc. (the "Corporation") and to encourage such persons to secure or increase on
reasonable terms their stock ownership in the Corporation. The Board of
Directors of the Corporation believes the Plan is in the best interest of the
Corporation and will promote the success of the Corporation. This success will
be achieved by encouraging continuity of Team Members and increased incentive
and personal interest in the welfare of the Corporation by those who are
primarily responsible for shaping and implementing the long-range plans of the
Corporation.

      Certain Options granted under this Plan are intended to be Incentive Stock
Options qualified under Section 422 of the Code. The Plan also permits the grant
of Nonqualified Stock Options and Restricted Stock Awards.

      Section 2: Definitions. For purposes of this Plan, the following terms
shall have the meanings indicated below:

            (a) "Award" means, individually or collectively, any Incentive Stock
      Option, Nonqualified Stock Option or Restricted Stock Award.

            (b) "Capital Stock": any of the Corporation's authorized but
      unissued shares of $.01 par value common stock.

            (c) "Code": the Internal Revenue Code of 1986, as amended from time
      to time.

            (d) "Fair Market Value": the price per share determined by the Board
      of Directors at the time any Option is granted. Fair Market Value of
      Incentive Stock Options shall be determined consistent with the Code and
      regulations.

            (e) "Incentive Stock Option": an option defined in Section 422 of
      the Code to purchase shares of the common stock of the Corporation.

            (f) "Nonqualified Stock Option": an option, not intended to qualify
      as an Incentive Stock Option as defined in Section 422 of the Code, to
      purchase common stock of the Corporation.

            (g) "Option": the term shall refer to a Stock Option granted under
      this Plan.

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            (h) "Option Agreement": a written agreement pursuant to which the
      Corporation grants an Option to an Optionee and sets the terms and
      conditions of the Option.

            (i) "Option Date": the date upon which an Option Agreement for an
      option granted pursuant to this Plan is duly executed by or on behalf of
      the Corporation.

            (j) "Optionee": an officer, management level or other employee,
      non-employee director of or consultant to Corporation to whom an Option
      has been granted under the Plan.

            (k) "Plan": this 1994 Stock Option Plan as amended hereafter from
      time to time.

            (l) "Restricted Period" means, with respect to any share of
      Restricted Stock, the period of time determined by the Committee during
      which such share of Restricted Stock is subject to the restrictions set
      forth in Section 7.

            (m) "Restricted Stock" means shares of Common Stock issued or
      transferred to a Participant subject to the restrictions set forth in
      Section 7 and any new, additional or different securities a Participant
      may become entitled to receive as a result of adjustments made pursuant to
      Section 8.

            (n) "Restricted Stock Award" means an Award granted under Section 7
      of the Plan.

            (o) "Stock": the $.01 par value common stock of the Corporation
      (subject to adjustment as described in Section 8) reserved for Options and
      Restricted Stock Grants pursuant to this Plan, or any other class of stock
      of the Corporation which may be substituted therefore by exchange, stock
      split or otherwise.

            (p) A "Subsidiary": any corporation in an unbroken chain of
      corporations beginning with the Corporation, if, at the time of granting
      the option, each of the corporations other than the last corporation in
      the chain owns 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. The term shall include any subsidiaries which
      become such after adoption of this Plan.

            (q) "Team Members": common law employees of Caribou Coffee Company,
      Inc.

      Section 3: Shares Available For Awards Under Plan. An aggregate of 750,000
shares of the Corporation's authorized but unissued shares of $.01 par value
common stock is hereby made available for grant, and shall be reserved for
issuance, under this Plan. The aggregate

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number of shares available under this Plan shall be subject to adjustment on the
occurrence of any of the events and in the manner set forth in Section 8. If an
Option shall expire or terminate for any reason without having been exercised in
full, or if a Restricted Stock Award shall be forfeited in whole or part, the
unpurchased or forfeited shares, shall (unless the Plan shall have been
terminated) become available for other Awards under the Plan.

      Section 4: Administration. The Plan shall be administered by the Board of
Directors of the Corporation. At all times subject to the authority of the Board
of Directors, the Board of Directors may from time to time delegate some or all
of its authority under the Plan to a committee consisting of two (2) or more
Directors (the "Committee"), and/or obtain assistance or recommendations from
such Committee. If no separate committee is appointed, the Board shall
constitute the Committee, and references to the Committee shall include the
entire Board of Directors.

      The Corporation shall grant Awards pursuant to the Plan upon
determinations of the Committee as to which of the eligible persons shall be
granted Awards, the type of Award (Options or Restricted Stock), the number of
shares to be Optioned or Awarded and the term during which any such Options may
be exercised. If the Corporation is publicly traded on a recognized securities
exchange, a majority of the members of the Committee making determinations about
the grant of Awards to employee-directors must be disinterested in the grant
being made. The Committee may from time to time adopt rules and procedures for
carrying out the Plan and interpretations and constructions of any provision of
the Plan, which shall be final and conclusive.

      Section 5: Eligibility for Stock Options. Incentive Stock Options under
the Plan may only be granted to such Team Members as selected by the Committee
in its discretion. Nonqualified Stock Options may be granted to Team Members,
non-employee directors and any other persons providing valuable services to the
Corporation.

      In selecting the Team Members or other persons to whom Stock Options shall
be granted, as well as determining the number of shares subject to each Option,
the Committee shall take into consideration such factors as it deems relevant in
connection with accomplishing the purpose of the Plan. For any calendar year,
the aggregate Fair Market Value (determined at the Option Date) of the stock
with respect to which any Incentive Stock Options are exercisable for the first
time by any individual employee (under all Incentive Stock Option plans of the
Corporation and all subsidiary corporations) shall not exceed $100,000. Subject
to the provisions of Section 3, an optionee who has been granted an Option may,
if he or she is otherwise eligible, be granted an additional Option or Options
if the Committee shall so determine. Any Incentive Stock Options that become
exercisable and exceed the above limitation shall be treated as a Nonqualified
Option.

      No Stock Option may be granted under this Plan with an expiration date
later than the ten (10) years from the effective date.

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      Section 6: Terms and Conditions of Options. Whenever the Committee shall
designate an Optionee, it shall communicate to the Secretary of the Corporation
the name of the Optionee, the number of shares to be Optioned and such other
terms and conditions as it shall determine, not inconsistent with the provisions
of this Plan. The President or other officer of the Corporation shall then enter
into an Option Agreement with the Optionee, complying with and subject to the
following terms and conditions and setting forth such other terms and conditions
of the Option as determined by the Committee:

            (a) Number of shares and Option price. The Option Agreement shall
      state the total number of shares to which it pertains. The price of
      Incentive Stock Option Stock shall be not less than one hundred percent
      (100%) of the Fair Market Value of the Option Stock at the Option Date. In
      the event an Incentive Stock Option is granted to an employee, who, at the
      Option Date (directly or indirectly), owns more than ten percent (10%) of
      the voting power of all classes of the Corporation's stock then
      outstanding, the price of the shares of Option Stock which will be covered
      by such Option shall be not less than one hundred ten percent (110%) of
      the Fair Market Value of the Option Stock at the Option Date. Nonqualified
      Options may be granted at a price equal to, greater than or less than Fair
      Market Value at the date of grant. The Option price shall be subject to
      adjustment as provided in Section 7 hereof.

            (b) Period of Options and right to exercise. Options granted under
      this Plan shall be subject to such terms and conditions, shall vest and be
      exercisable at such times and shall be evidenced by such form of written
      Option Agreement as the Committee shall determine, provided that for
      Incentive Stock Options, such determinations are not inconsistent with
      Code Section 422 and the regulations thereunder. Unless modified by the
      Committee in the Option Agreement, Incentive Stock Options will all vest
      at a rate of thirty-three and one-third percent (33 1/3%) per year
      measured from the date of grant.

      In addition, no Option granted, shall by its terms, be exercisable after
      the expiration of ten (10) years from the date such Option is granted.
      Except, however, Options granted to any employee who at the time of grant
      owns more than ten percent (10%) of the voting power of all shares of
      the classes of Corporation's stock then outstanding may not by its terms
      be exercisable after expiration of five (5) years from the date such
      Option is granted. The period during which the Option may be exercised,
      once it is granted, shall not be reduced, except as provided in paragraphs
      (c), (d) and (e) below. The exercise of any Option will be contingent upon
      receipt by the Corporation of payment as provided in paragraph (h) below
      for the full purchase price of such shares. No Optionee or his or her
      legal representatives, legatees or distributees, as the case may be, will
      be, or will be deemed to be, a holder of any shares subject to an Option
      unless and until certificates for such shares are issued under the terms
      of the Plan.

            (c) Termination of Employment or Service. In the event that an
      Optionee shall cease to be employed by or performing services for the
      Corporation for any

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      reason other than death or gross misconduct, subject to the condition that
      no Incentive Stock Option shall be exercisable after the expiration of ten
      (10) years from the date it is granted, such Optionee shall have the right
      to exercise any outstanding Options at any time within thirty (30) days
      after the termination of employment or service (in the case of a disabled
      employee or other Optionee, the Committee at its discretion may permit
      exercise of Options within one year of termination of employment).

                  Any Optionee whose employment or other services is terminated
      by reason of gross misconduct shall immediately forfeit all unexercised
      Options whether vested or nonvested. "Gross misconduct" for purposes of
      this subparagraph means that the Optionee has engaged in theft,
      misappropriation of Corporation property or other acts of dishonesty which
      have a detrimental effect on the Corporation.

            (d) Death of Optionee. If the Optionee shall die (i) while in the
      employ of or under contract with the Corporation or any subsidiary, or
      (ii) within a period of three (3) months after the termination of his or
      her employment or contract with the Corporation or any subsidiary as
      provided in paragraph (c) of this section, and in either case shall not
      have fully exercised his or her Options, any Options granted pursuant to
      the Plan shall be exercisable until the earlier of the originally stated
      date of termination or one year from the date of death. Such Option shall
      be exercised pursuant to subparagraph (g) of this Section by the person or
      persons to whom the Optionee's rights under the Option shall pass by the
      Optionee's will or by the laws of descent and distribution, and only to
      the extent that such Options were exercisable at the time of his death.

            (e) Transfer of Option. Each Option granted hereunder shall, by its
      terms, not be transferable by the Optionee other than by will or by the
      laws of descent and distribution, and shall be, during the Optionee's
      lifetime, exercisable only by the Optionee. Except as permitted by the
      preceding sentence, each Option granted under the Plan and the rights and
      privileges thereby conferred shall not be transferred, assigned or pledged
      in any way (whether by operation of law or otherwise), and shall not be
      subject to execution, attachment or similar process. Upon any attempt to
      so transfer, assign, pledge, or otherwise dispose of the Option, or of any
      right or privilege conferred thereby, contrary to the provisions of the
      Option or the Plan, or upon levy of any attachment or similar process upon
      such rights and privileges, the Option, and such rights and privileges,
      shall immediately become null and void.

            (f) Manner of Exercise of Options. An Option may be exercised, in
      whole or in part, at such time or times and with respect to such number of
      shares, as the Committee, in its sole discretion, shall determine at the
      time that the Option is granted. The Option terms shall be set forth in
      the Option Agreement granting the Option. Such Option shall be exercisable
      only within the Option period and only by (i) written notice to the
      Corporation of intent to exercise the Option with respect to a specified
      number of shares of stock; (ii) tendering the original Option Agreement to

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      the Corporation; and (iii) payment to the Corporation of the amount of the
      Option purchase price for the number of shares of stock with respect to
      which the Option is then exercised. Payment of the Option purchase price
      may be made in cash or by check. When shares of stock are issued to the
      Optionee pursuant to the exercise of an Option, the fact of such issuance
      shall be noted on the Option Agreement by the Corporation before the
      Agreement is returned to the Optionee. When all shares of Optioned stock
      covered by the Option Agreement have been issued to the Optionee, or the
      Option shall expire, the Option Agreement shall be cancelled and retained
      by the Corporation.

            (g) Delivery of Certificate. As promptly as practicable after
      receipt of the written notice and payment specified above, the Corporation
      shall deliver to the Optionee certificates for the number of shares with
      respect to which the Option has been exercised, issued in the Optionee's
      name; provided, however, that such delivery shall be deemed effected for
      all purposes when the Corporation, or the stock transfer agent for the
      Corporation, shall have deposited such certificates in the United States
      mail, postage prepaid, addressed to the Optionee at the address specified
      in the written notice of exercise.

            (h) Other Provisions. The Option Agreements authorized under this
      Section may contain such other provisions as the Committee shall deem
      advisable, including, but not limited to a requirement that Capital Stock
      purchased pursuant to the exercise of an Option be subject to a buy-sell
      agreement which will restrict the Optionee's ability to transfer the
      Capital Stock to third parties, provisions for forfeiture of shares or
      Options or provision to assist the Optionee in financing the purchase of
      the Corporation's Stock through the exercise of Options upon reasonable
      terms.

      Section 7: Restricted Stock Awards.

            (a) Award of Restricted Stock.

                  (i) The Committee shall have the authority (1) to directly
            grant Restricted Stock Awards, (2) to issue or transfer Restricted
            Stock to Participants, and (3) to establish terms, conditions and
            restrictions applicable to such Restricted Stock, including the
            Restricted Period, which may differ with respect to each grantee,
            the time or times at which Restricted Stock shall be granted or
            become vested and the number of shares or units to be covered by
            each grant.

                  (ii) The Holder of a Restricted Stock Award shall execute and
            deliver to the Secretary of the Company an agreement with respect to
            Restricted Stock satisfactory to the Committee and the appropriate
            blank stock powers with respect to the Restricted Stock covered by
            such agreements and shall pay to the Company, as the purchase price
            of the shares of Stock subject

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            to such Award, the purchase price, if any, established by the
            Committee in its discretion and indicated in the Award within 60
            days following the making of such Award. If a Participant shall fail
            to execute the agreement, stock powers or shall fail to pay such
            purchase price within such period, the Award shall be null and void.
            Subject to the restrictions set forth in Section 7(b), the Holder
            shall generally have the rights and privileges of a stockholder as
            to such Restricted Stock, including the right to vote such
            Restricted Stock. At the discretion of the Committee, cash and stock
            dividends with respect to the Restricted Stock may be either
            currently paid or withheld by the Company for the Holder's account,
            and interest may be paid on the amount of cash dividends withheld at
            a rate and subject to such terms as determined by the Committee.
            Cash or stock dividends so withheld by the Committee shall not be
            subject to forfeiture.

                  (iii) In the case of a Restricted Stock Award, the Committee
            shall then cause stock certificates registered in the name of the
            Holder to be issued and held by the Secretary of the Company or an
            agent.

            (b) Restrictions.

                  (i) Restricted Stock awarded to a Participant shall be subject
            to the following restrictions until the expiration of the Restricted
            Period: (1) the Holder shall not be entitled to delivery of the
            stock certificate; (2) the shares shall be subject to the
            restrictions on transferability set forth in the Grant; (3) the
            shares shall be subject to forfeiture to the extent provided by the
            Committee in the Restricted Stock Award Agreement and, to the extent
            such shares are forfeited, the stock certificates shall be returned
            to the Company, and all rights of the Holder to such shares and as a
            shareholder shall terminate without further obligation on the part
            of the Company.

                  (ii) The Committee shall have the authority to remove any or
            all of the restrictions on the Restricted Stock whenever it may
            determine that, by reason of changes in applicable laws or other
            changes in circumstances arising after the date of the Restricted
            Stock Award, such action is appropriate.

            (c) Restricted Period. The Restricted Period of Restricted Stock
      shall commence on the Date of Grant and unless otherwise established by
      the Committee in the Restricted Stock Agreement, shall expire from time to
      time as to that part of the Restricted Stock in accordance with a schedule
      included in the letter or form evidencing the Award.

            (d) Delivery of Restricted Stock. Upon the expiration of the
      Restricted Period with respect to any shares of Stock covered by a
      Restricted Stock Award, a stock certificate evidencing the shares of
      Restricted Stock which have not then been

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      forfeited and with respect to which the Restricted Period has expired (to
      the nearest full share) shall be delivered without charge to the Holder,
      or his beneficiary, free of all restrictions under the Plan.

            (e) Payment for Restricted Stock. Except as provided in subparagraph
      7(a)(ii), a Holder shall not be required to make any payment for Stock
      received pursuant to a Restricted Stock Award.

            (f) SEC Restrictions. Unless the Restricted Stock has been otherwise
      registered with the SEC, each certificate representing Restricted Stock
      awarded under the Plan shall bear the following legend:

                  "THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE WERE
            ISSUED PURSUANT TO THE CARIBOU COFFEE COMPANY, INC., 1994 STOCK
            AWARDS PLAN. SUCH SHARES HAVE NOT BEEN REGISTERED UNDER THE
            SECURITIES ACT OF 1933 OR APPLICABLE STATE LAW AND MAY NOT BE SOLD
            OR TRANSFERRED EXCEPT IN COMPLIANCE THEREWITH."

      If the shares of Common Stock to be issued to a Participant have been
      registered under the Securities Act of 1933, as amended, but the
      Participant is subject to resale restrictions under Rule 144 under the
      Securities Act of 1933, as amended, the Company may place the following
      legend on stock certificates issued to the Participant:

                  "THE SHARES REPRESENTED BY THIS CERTIFICATE WERE ISSUED TO AN
            AFFILIATE OF THE ISSUER AND THE RESALE OF SUCH SHARES IS SUBJECT TO
            CERTAIN RESTRICTIONS UNDER RULE 144 UNDER THE SECURITIES ACT OF
            1933, AS AMENDED, OR SUCH OTHER PROVISIONS APPLICABLE TO THE RESALE
            OF SECURITIES BY AFFILIATES."

      Stop transfer orders shall be entered with the Company's transfer agent
      and registrar against the transfer of legended securities except in
      compliance with the Securities Act of 1933, as amended ("Act").

      Section 8: Adjustment of Number of Shares. If, and to the extent that, the
number of issued shares of the Capital Stock of the Corporation shall be
increased or reduced by change in par value, recapitalization, reorganization,
merger, consolidation, split up, distribution of a dividend payable in stock or
the like, the number of shares subject to the Option and the Option price
therefor shall be equitably adjusted by the Committee consistent with such
change to prevent substantial dilution or enlargement of the rights granted to
or available to Optionees. Restricted Stock Awards shall be adjusted in the same
manner as other outstanding shares of stock of the Corporation.

      Subject to the foregoing, the grant of an Option pursuant to the Plan
shall not affect in any way the right or power of the Corporation to make
adjustments, reclassifications,

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reorganizations, or changes of its capital or business structure or to merge or
to consolidate or to dissolve, liquidate or sell, or transfer all or any part of
its business or assets.

      Section 9: Rights as Stockholder. An Optionee shall not, by reason of any
Option granted hereunder, have any right of a stockholder of the Corporation
with respect to the shares covered by his Option until such shares shall have
been issued to the Optionee.

      Section 10: No Obligation to Exercise Option. The granting of an Option
shall impose no obligation upon the Optionee to exercise such Option. Neither
shall the Plan confer upon the Optionee any rights respecting continued
employment nor limit the Optionee's rights or the employer Corporation's rights
to terminate such employment.

      Section 11: Withholding Taxes. Whenever under the Plan shares of Option
Stock are to be issued upon exercise of a Nonqualified Option granted hereunder,
upon a lapse of restrictions on a Restricted Stock Award and prior to the
delivery of any certificates or certificates for said shares by the Corporation
or if required by law, upon a disqualified disposition of an Incentive Stock
Option, the Corporation shall have the right to require any Optionee that is or
was an employee as of the date of grant, to remit to the Corporation an amount
sufficient to satisfy any federal and state withholding or other employment
taxes, if any, resulting from such exercise, lapse or early disposition.

      Section 12: Common Stock Acquired for Investment. Common Stock acquired by
an Optionee under this Plan by exercise of any Option or a Restricted Stock
Award shall be acquired by the Optionee for investment and without intention of
resale, unless, in the opinion of counsel of the Corporation, such common stock
may be purchased without any investment representation. Where an investment
representation is deemed necessary, the Committee may require a written
representation to that effect by the Optionee as a condition of the Optionee
exercising an Option under this Plan, and the Committee may place an appropriate
legend on the common stock issued to the Optionee indicating that such common
stock has not been registered under federal or state securities laws. Each
Option shall be subject to the requirement that if, at any time, the Committee
shall determine in its discretion that the listing, registration or
qualification of the shares subject to such Option upon any securities exchange
or under any state or federal law, or the consent or approval of any
governmental regulatory body, is necessary or desirable as a condition of, or in
connection with, the granting of such Option or the issuance or purchase of
shares thereunder, then such Option shall not be granted or exercised in whole
or in part unless such listing, registration, qualification, consent or approval
shall have been effected or obtained free of any conditions not acceptable to
the Committee. Nothing contained herein shall require the Corporation to
register the Options or the shares of voting common stock purchased upon the
exercise of said Options.

      Section 13: Effective Date. This Plan shall be effective May 1, 1994 (the
"Effective Date") as approved by the Board of Directors. However, unless within
12 months before or 12 months after the Plan is adopted by the Board of
Directors, the Plan is approved

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by the vote of the holders of a majority of the outstanding Capital Stock of the
Corporation, the Plan shall not qualify under Section 422 of the Code. All
subsequent stock options granted hereunder will be Nonqualified Stock Options.
All Options granted prior to disqualification of the Plan for failure to obtain
shareholder approval shall be converted to Nonqualified Stock Options.

      Section 14: Liquidation. Upon the complete liquidation of the Corporation,
any unexercised Options theretofore granted under this Plan shall be deemed
cancelled, except as otherwise provided in Section 8 in connection with a
merger, consolidation or reorganization of the Corporation provided that
Optionees are given at least 30 days written notice in advance of the effective
date during which time Options may be exercised.

      Section 16: Termination and Amendment of the Plan. This Plan shall
terminate ten (10) years after the Effective Date or at such earlier time as the
Board of Directors shall determine. Any termination shall not affect any Options
then outstanding under the Plan.

      The Board may make such modifications of the Plan as it shall deem
advisable, but may not, without further approval of the stockholders of the
Corporation, except as provided in Section 8 hereof, (a) increase the number of
shares reserved for Options under this Plan, (b) change the manner of
determining the Option price for Incentive Stock Options, (c) increase the
maximum term of the Options provided for herein, or (d) change the class of
persons eligible to receive Options under the Plan.

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                                                                    EXHIBIT 10.2

                      NON-QUALIFIED STOCK OPTION AGREEMENT
                                    UNDER THE
                          CARIBOU COFFEE COMPANY, INC.
                             1994 STOCK AWARDS PLAN

      THIS AGREEMENT is dated effective as of the grant date set forth on
Exhibit A attached hereto, between Caribou Coffee Company, Inc., a Minnesota
corporation (the "Company"), and the employee listed on Exhibit A ("Optionee").

      WHEREAS, the Company has adopted the Caribou Coffee Company, Inc. 1994
Stock Awards Plan (the "Plan") to permit stock options to be granted to certain
key employees and other persons providing valuable services to the Company; and

      WHEREAS, the Company desires to grant and the Optionee desires to accept
the options to purchase shares of common stock of the Company (as defined
below);

      NOW THEREFORE, in consideration of the premises and of the covenants and
agreements set forth below, it is mutually agreed as follows:

      1.    Grant of Options. The Company hereby grants to Optionee an option to
purchase from the Company all or any part of an aggregate amount of the shares
of the common stock of the Company, par value $0.01 per share (the "Common
Stock"), at the option price and on other terms, as set forth in Exhibit A
attached hereto and made a part hereof. The date of this Agreement is the
effective date of the grant. This option is a non-qualified stock option under
the Internal Revenue Code.

      2.    Incorporation of Plan by Reference. This option and any shares
purchased upon the exercise of this option shall be subject to each and every
provision of the Plan. A copy of the Plan and all amendments is available from
the Company upon request of the Optionee. All terms contained in this Agreement
which are not defined in this Agreement shall have the same meaning given to
such terms in the Plan.

      3.    Exercise Period. This option shall vest and become exercisable in
accordance with the schedule attached hereto as Exhibit A and made a part
hereof. If Optionee terminates employment prior to an applicable vesting date,
all non-vested options shall be immediately forfeited. All options must be
exercised on or before a date ten (10) years from the date of the grant.

      4.    Exercise of Option. This option may be exercised only by written
notice of intent to the Company at its office at 615 North Third Street,
Minneapolis, Minnesota 55401. Such notice shall state the number of shares in
respect of which the option is being exercised and shall be accompanied by
payment for such shares in cash, certified or cashier's check or by personal
check, if acceptable to the Committee, or in such other manner as specified in
the Plan. A form of Notice of Exercise is attached hereto.

      5.    Withholding. In the event that the Optionee elects to exercise this
Option or any part thereof, and if the Company shall be required to withhold any
amounts by reasons of any federal, state or local tax laws, rules or regulations
in respect of the issuance of shares to the Optionee pursuant to the Option, the
Company shall be entitled to deduct and withhold such amounts from any payments
to be made to the Optionee. In any event, the Optionee shall make available to
the Company, promptly when requested by the Company, sufficient funds to meet

<PAGE>

the requirements of such withholding; and the Company shall be entitled to take
and authorize such steps as it may deem advisable in order to have such funds
available to the Company out of any funds or property due or to become to the
Optionee.

      6.    Exercise Upon Death or Termination of Employment. If the Optionee's
employment with the Company or any subsidiary terminates for any reason other
than gross misconduct, the option shall remain in force for a period of thirty
(30) days and remain subject to the terms of the Plan and this Agreement. If
Optionee shall die while an employee of the Company or any subsidiary or within
thirty (30) days after termination of employment, this option may be exercised
(subject to the previous sentence), to the extent that the Optionee was entitled
to do so at the date of death, by the person or persons to whom Optionee's
rights under this option pass by will or applicable law, or if no such person
has such right, by his or her executors or administrators, subject to the terms
of this Agreement. If Optionee is terminated by reason of gross misconduct as
described in the Plan, this option shall terminate as of the date of such
termination.

      7.    No Right of Employment. Nothing contained in this Agreement shall
obligate the Company or any subsidiary of the Company to continue the employment
of Optionee for any particular period or interfere with the right of the Company
or any such subsidiary to terminate Optionee's employment at any time.

      8.    No Shareholder Rights. Optionee shall have no rights as a
stockholder with respect to any shares of Common Stock subject to this option
prior to the date of issuance of a certificate or certificates for such shares.

      9.    Investment Representation. Notice of the exercise of this option
shall include a representation that any of the option shares purchased shall be
acquired as an investment and not with a view to, or for sale in connection
with, any public distribution.

      10.   Compliance with Law and Regulations. The Optionee acknowledges that
this option may not be exercised until the Company has taken all actions then
required to comply with all applicable federal and state laws, rules and
regulations and any exchange on which the stock may then be listed. The
certificates representing the shares purchased upon the exercise of this option
shall bear a legend in substantially the following form:

      THESE SHARES HAVE NOT BEEN REGISTERED EITHER UNDER ANY APPLICABLE FEDERAL
      LAW AND RULES AND RESALE WILL NOT BE PERMITTED UNDER STATE LAW UNLESS THE
      SHARES ARE FIRST REGISTERED UNDER THE MINNESOTA SECURITIES LAW. FURTHER,
      NO SALE, OFFER TO SELL, OR TRANSFER OF THESE SHARES SHALL BE MADE UNLESS A
      REGISTRATION STATEMENT UNDER THE FEDERAL SECURITIES ACT OF 1933, AS
      AMENDED, WITH RESPECT TO SUCH SHARES IS THEN IN EFFECT OR AN EXEMPTION
      FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT IS THEN IN FACT APPLICABLE
      TO SUCH SHARES.

      11.   Non-Transferability. This option shall not be transferable other
than by will or by laws of descent and distribution. During the lifetime of the
Optionee, this option shall be exercisable only by such Optionee.

      12.   Dispute or Disagreement. As a condition of the granting of this
option, the Optionee agrees that any dispute or disagreement which may arise
under or as a result of or pursuant to this Agreement or the Plan shall be
determined by the Committee in its sole discretion, and that any interpretation
by the Committee of the terms of this Agreement or the Plan shall be final,
binding and conclusive.

      13.   Other Assistance. Upon the exercise of this option the Optionee or
other person exercising the option must execute a shareholder's agreement and
make any representation or

                                        2

<PAGE>

give any commitment which the Committee, in its discretion, deems necessary or
advisable by reason of the securities laws of the United States or any state,
and execute any document or pay any sum of money in respect of taxes or
undertake to pay or have paid any such sum which the Committee, in its
discretion, deems necessary be reason of the Code or any rule or regulation
thereunder, or by reason of the tax laws of any state.

      14.   Binding Agreement. This Agreement shall be binding upon and inure to
the benefit of the legal representatives, executors, administrators, successors
and assigns of each parties to this Agreement.

      15.   Complete Agreement. This Agreement sets forth the entire
understanding of the parties hereto and shall not be amended, changed or
terminated except by an instrument in writing signed by the parties to this
Agreement.

      16.   Counterparts and Governing Law. This Agreement may be executed in
counterparts, and its validity, construction and performance, shall be governed
by the laws of the state of Minnesota.

      IN WITNESS WHEREOF, the parties have executed this Agreement effective the
date first above written.

                          CARIBOU COFFEE COMPANY, INC.

                          By: ____________________________________

                          Print Name:

                          Title:

                          OPTIONEE

                              [Optionee's signature is set forth on Exhibit A
                          attached hereto and made a part hereof.]

                                        3

<PAGE>

                       NOTICE OF EXERCISE OF STOCK OPTION

Caribou Coffee Company, Inc.
615 North 3rd Street
Minneapolis, MN  55401

      The undersigned is the holder of a non-qualified stock option (the
"Option") to purchase shares of common stock ("Stock") of Caribou Coffee
Company, Inc. (the "Company"), pursuant to the terms of the Company's 1994 Stock
Awards Plan (the "Plan") and the Stock Option Agreement between the Company and
the undersigned (the "Agreement"). The undersigned hereby irrevocably elects to
exercise the Option to purchase _____ shares of common stock (the "Option
Shares"). Enclosed herewith are (1) the original signed Agreement, and (2)
payment for the Option Shares as required under the Plan and the Agreement. The
undersigned requests that the certificate representing the Option Shares be
issued in the name of the undersigned and delivered to the address set forth
below.

      In connection with the issuance of the Option Shares to the undersigned,
the undersigned hereby certifies and represents to the Company that the
undersigned is acquiring such shares for the purpose of investment and not with
a view toward distribution. The undersigned understands that these securities
have not been registered either under any applicable federal law and rules or
applicable state law and rules and that resale will not be permitted under state
law unless the securities are first registered or the sale is a transaction
exempt from registration under the applicable state securities law.

      The undersigned further understands that no sale, offer to sell, or
transfer of the Option Shares shall be made unless a registration statement
under the federal Securities Act of 1933, as amended (the "Act"), with respect
to the Option Shares is then in effect or an exemption from the registration
requirements of the Act is then in fact applicable to the Option Shares. The
undersigned understands that a legend reciting this investment restriction shall
be placed on any stock certificate that may be issued to the undersigned.

Dated:__________________________________

________________________________________
        (Optionee Signature)

________________________________________
            (Address)

S.S. No.__________________________________

                                        4

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