Document:

Cost Plus, Inc. 1996 Director Option Plan, as amended

 EXHIBIT 4.5 
  

COST PLUS, INC. 
  
 1996 DIRECTOR OPTION PLAN 
 (Amended
June 19, 1997) 
 (Amended June 15, 1999) 
 (Amended June 22, 2000) 
 (Amended June 27, 2002) 
 (Amended July 1, 2004) 
  
 1. Purposes of the Plan. The purposes of this 1996 Director Option Plan are to attract and retain the best available personnel for service as
Outside Directors (as defined herein) of the Company, to provide additional incentive to the Outside Directors of the Company to serve as Directors, and to encourage their continued service on the Board. 
  
 All options granted hereunder shall be nonstatutory stock
options. 
  
 2. Definitions. As used herein, the following
definitions shall apply: 
  
 (a)
“Board” means the Board of Directors of the Company. 
  
 (b) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (c) “Common Stock” means the Common Stock of the Company. 
  
 (d) “Committee” means a committee appointed by the Board to administer the Plan and to
perform the functions set forth herein, or, if no such committee is appointed, the Board. 
  
 (e) “Company” means Cost Plus, Inc., a California corporation. 
  
 (f) “Director” means a member of the Board.

  
 (g) “Employee” means any
person, including officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. The payment of a Director’s fee by the Company shall not be sufficient in and of itself to constitute “employment” by the
Company. 
  
 (h) “Exchange Act”
means the Securities Exchange Act of 1934, as amended. 
  
 (i) “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the 

  

 -1- 

 
day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
  
 (ii) If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the date of determination, as reported in The Wall Street
Journal or such other source as the Board deems reliable, or; 
  
 (iii) In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Board. 
  
 (j) “Inside Director” means a Director who is an Employee. 
  
 (k) “Option” means a stock option granted
pursuant to the Plan. 
  
 (l) “Optioned
Stock” means the Common Stock subject to an Option. 
  
 (m) “Optionee” means a Director or an entity that holds an Option. 
  
 (n) “Outside Director” means a Director who is not an Employee. 
  
 (o) “Parent” means a “parent
corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
  
 (p) “Plan” means this 1996 Director Option Plan. 
  
 (q) “Representative Director” means a Director who is a member of the Board as the
representative for an entity that employs such Director. The determination of whether an Outside Director is a Representative Director shall be determined by the representations of such Director and such determination may be changed at any time by
such Director. 
  
 (r) “Share”
means a share of the Common Stock, as adjusted in accordance with Section 10 of the Plan. 
  
 (s) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section
424(f) of the Internal Revenue Code of 1986. 
  
 3. Stock
Subject to the Plan. Subject to the provisions of Section 10 of the Plan, the maximum aggregate number of Shares which may be optioned and sold under the Plan is 503,675 Shares of Common Stock. The Shares may be authorized, but unissued, or
reacquired Common Stock. 
  
 If an Option expires
or becomes unexercisable without having been exercised in full, the unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated). Shares that have actually been issued
under the Plan shall not be returned to the Plan and shall not become available for future distribution under the Plan. 
  

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 4. Administration and Grants of Options under the Plan. 
  
 (a) The Plan shall be administered by the Committee which
shall hold meetings at such times as may be necessary for the proper administration of the Plan. The Committee shall keep minutes of its meetings. Except as otherwise provided in the Company’s Articles of Incorporation or By-Laws, a quorum
shall consist of a majority of the members of the Committee and a majority of a quorum may authorize any action. Except as otherwise provided in the Company’s Articles of Incorporation or Bylaws, any decision or determination reduced to writing
and signed by the requisite number of the members of the Committee shall be as fully effective as if made by the vote of the requisite number of members at a meeting duly called and held. 
  
 (b) The Committee shall be composed of the Board of
Directors or a committee appointed by the Board. 
  
 (c) Subject to the express terms and conditions set forth herein, the Committee shall have the power from time to time: 
  
 (i) to determine those individuals to whom Options shall be granted under the Plan and the number of Shares subject to each Option to be
granted, to prescribe the terms and conditions (which need not be identical) of each such Option, including the Fair Market Value on any date, and to make any amendment or modification to any option agreement, including the acceleration of vesting,
consistent with the terms of the Plan; 
  
 (ii)
to construe and interpret the Plan and the Options granted hereunder and to establish, amend and revoke rules and regulations for the administration of the Plan, including, but not limited to, correcting any defect or supplying any omission, or
reconciling any inconsistency in the Plan or in any Agreement, in the manner and to the extent it shall deem necessary or advisable so that the Plan complies with applicable law, and otherwise to make the Plan fully effective. All decisions and
determinations by the Committee in the exercise of this power shall be final, binding and conclusive upon the Company, its Subsidiaries, the Optionees, and all other persons having any interest therein; 
  
 (iii) to exercise its discretion with respect to the powers
and rights granted to it as set forth in the Plan; and 
  
 (iv) generally, to exercise such powers and to perform such acts as are deemed necessary or advisable to promote the best interests of the Company with respect to the Plan. 
  
 (d) Procedure for Grants. The terms of an Option granted hereunder shall be as follows: 

 
 (i) the term of the Option shall be up to ten (10) years.

  

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 (ii) subject to Sections 8 and 10 hereof, the Option shall be exercisable: 
  
 (A) in the event of an Option held directly by an Outside
Director, only while the Outside Director remains a Director of the Company. 
  
 (B) in the event of an Option held by an entity pursuant to Section 5(b) hereof, only while the Representative Director remains a Director of the Company. 
  
 (iii) the exercise price per Share shall be 100% of the Fair Market Value per Share on the date of grant of
the Option. In the event that the date of grant of the Option is not a trading day, the exercise price per Share shall be the Fair Market Value on the next trading day immediately following the date of grant of the Option. 
  
 (iv) subject to Section 10 hereof, the Option shall become
exercisable as determined by the Committee at the time of grant of the Option. 
  
 5. Eligibility. 
  
 (a) Except as provided in Section 5(b) hereof, Options may be granted only to Outside Directors. 
  
 (b) In the event an Outside Director is a Representative Director, Options shall be granted in the name of the entity employing such
Representative Director and such Representative Director shall not personally receive any option grants in the Representative Director’s own name. 
  
 (c) The Plan shall not confer upon any Outside Director any right with respect to continuation of service as a Director or nomination to
serve as a Director, nor shall it interfere in any way with any rights which the Director or the Company may have to terminate the Director’s relationship with the Company at any time. 
  
 6. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board or its approval by the shareholders of the Company as described in Section 16 of the Plan. It shall continue in effect for a term of ten (10) years unless sooner terminated under Section 11 of the Plan. 

 
 7. Form of Consideration. The consideration to be paid for the
Shares to be issued upon exercise of an Option, including the method of payment, shall consist of (i) cash, (ii) check, (iii) other shares which (x) in the case of Shares acquired upon exercise of an Option, have been owned by the Optionee for more
than six (6) months on the date of surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised, (iv) delivery of a properly executed exercise
notice together with such other documentation as the Company and the broker, if applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the exercise price, or (v) any
combination of the foregoing methods of payment. 
  

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 8. Exercise of Option. 
  
 (a) Procedure for Exercise; Rights as a Shareholder. Any Option granted hereunder shall be
exercisable at such times as are set forth in Section 4 hereof. 
  
 An Option may not be exercised for a fraction of a Share. 
  
 An Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms
of the Option by the person entitled to exercise the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may consist of any consideration and method of payment allowable
under Section 7 of the Plan. 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 stock certificate evidencing such Shares, no right to vote or receive
dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. A share certificate for the number of Shares so acquired shall be issued to the Optionee as soon as
practicable after exercise of the Option. No adjustment shall be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 10 of the Plan. 
  
 Exercise of an Option in any manner shall result in a
decrease in the number of Shares which thereafter may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
  
 (b) Termination of Continuous Status as a Director.
Subject to Section 10 hereof, in the event an Optionee’s status as a Director terminates (other than the Optionee’s death or total and permanent disability (as defined in Section 22(e)(3) of the Code)), the Optionee may exercise his or her
Option, but only within six (6) months following the date of such termination, and only to the extent that the Optionee was entitled to exercise it on the date of such termination (but in no event later than the expiration of its ten (10) year
term). To the extent that the Optionee was not entitled to exercise an Option on the date of such termination, and to the extent that the Optionee does not exercise such Option (to the extent otherwise so entitled) within the time specified herein,
the Option shall terminate. 
  
 (c) Disability
of Optionee. In the event an Optionee’s status as a Director terminates as a result of total and permanent disability (as defined in Section 22(e)(3) of the Code), the Optionee may exercise his or her Option, but only within twelve (12)
months following the date of such termination, and only to the extent that the Optionee was entitled to exercise it on the date of such termination (but in no event later than the expiration of its ten (10) year term). To the extent that the
Optionee was not entitled to exercise an Option on the date of termination, or if the Optionee does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
  
 (d) Death of Optionee. In the event of an
Optionee’s death, the person or entity designated as beneficiary in writing by the Optionee, or, if no such person or entity has been designated as beneficiary by the Optionee, the Optionee’s estate or a person who acquired the right to
exercise the 

  

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Option by bequest or inheritance may exercise the Option, but only within twelve (12) months following the date of death, and only to the extent that the
Optionee was entitled to exercise it on the date of death (but in no event later than the expiration of its ten (10) year term). To the extent that the Optionee was not entitled to exercise an Option on the date of death, and to the extent that the
Optionee’s estate or a person who acquired the right to exercise such Option does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
  
 9. Non-Transferability of Options. The Option may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. 
  
 10. Adjustments Upon Changes in Capitalization, Dissolution, Merger or
Asset Sale. 
  
 (a) Changes in
Capitalization. Subject to any required action by the shareholders of the Company, the number of Shares covered by each outstanding Option, the number of Shares which have been authorized for issuance under the Plan but as to which no Options
have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Option, as well as the price per Share covered by each such outstanding Option shall be proportionately adjusted for any increase or decrease in the
number of issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued Shares effected without receipt of
consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Except as expressly provided herein, no issuance by
the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an Option.

  
 (b) Dissolution or Liquidation. In the
event of the proposed dissolution or liquidation of the Company, to the extent that an Option has not been previously exercised, it shall terminate immediately prior to the consummation of such proposed action. 
  
 (c) Merger or Asset Sale. In the event of a merger of
the Company with or into another corporation or the sale of substantially all of the assets of the Company, outstanding Options may be assumed or equivalent options may be substituted by the successor corporation or a Parent or Subsidiary thereof
(the “Successor Corporation”). If an Option is assumed or substituted for, the Option or equivalent option shall continue to be exercisable as provided in Section 4 hereof for so long as the Optionee (or, in the case of an entity Optionee,
such Optionee’s Representative Director) serves as a Director or a director of the Successor Corporation. Following such assumption or substitution, if the Optionee’s (or, in the case of an entity Optionee, such Optionee’s
Representative Director’s) status as a Director or director of the Successor Corporation, as applicable, is terminated other than upon a voluntary resignation by the Optionee (or, in the case of an entity Optionee, such Optionee’s
Representative Director), the Option or option shall become fully exercisable, including as to Shares for which it would not otherwise be exercisable. Thereafter, the Option or option shall remain exercisable in accordance with Sections 8(b) through
(d) above. 
  

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 If the Successor Corporation does not assume an outstanding Option or substitute for it an equivalent
option, the Option shall become fully vested and exercisable, including as to Shares for which it would not otherwise be exercisable. In such event the Board shall notify the Optionee that the Option shall be fully exercisable for a period of thirty
(30) days from the date of such notice, and upon the expiration of such period the Option shall terminate. 
  
 For the purposes of this Section 10(c), an Option shall be considered assumed if, following the merger or sale of assets, the Option confers the right to
purchase or receive, for each Share of Optioned Stock subject to the Option immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets 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). 
  
 11. Amendment and Termination of the Plan. 
  
 (a) Amendment and Termination. Except as set forth in
Section 4, the Board may at any time amend, alter, suspend, or discontinue the Plan, but no amendment, alteration, suspension, or discontinuation shall be made which would impair the rights of any Optionee under any grant theretofore made, without
such Optionee’s consent. In addition, to the extent necessary and desirable to comply with any other applicable law or regulation (including any rule of a stock exchange or automated stock quotation system upon which the shares are traded), the
Company shall obtain shareholder approval of any Plan amendment in such a manner and to such a degree as required. 
  
 (b) Effect of Amendment or Termination. Any such amendment or termination of the Plan shall not affect Options already granted and
such Options shall remain in full force and effect as if this Plan had not been amended or terminated. 
  
 12. Time of Granting Options. The date of grant of an Option shall, for all purposes, be the date determined in accordance with Section 4 hereof.

  
 13. Conditions Upon Issuance of Shares. Shares shall
not be issued pursuant to the exercise of an Option unless the exercise of such Option and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act
of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, state securities laws, and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance. 
  
 As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment
and without any present intention to sell or distribute such Shares, if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned relevant provisions of law. 
  

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 Inability of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to
which such requisite authority shall not have been obtained. 
  
 14. Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
  
 15. Option Agreement. Options shall be evidenced by written option
agreements in such form as the Board shall approve. 
  

 -8-Cost Plus, Inc. Deferred Compensation Plan, as amended

 EXHIBIT 4.6 
  

COST PLUS, INC. 
 DEFERRED
COMPENSATION PLAN 
  
 As amended and restated effective May
21, 2004 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

		
	 ARTICLE I DEFINITIONS
	  	1
		
	 ARTICLE II ELIGIBILITY
	  	4
			
	 2.1
	  	 Eligibility
	  	4
	 2.2
	  	 Commencement of Participation
	  	4
	 2.3
	  	 Cessation of Participation
	  	4
		
	 ARTICLE III DEFERRALS
	  	4
			
	 3.1
	  	 Salary Deferrals
	  	4
	 3.2
	  	 Bonus Deferrals
	  	5
	 3.3
	  	 Limitations on Deferrals
	  	5
	 3.4
	  	 Time for Making Deferral Elections
	  	6
	 3.5
	  	 Vesting
	  	6
		
	 ARTICLE IV COMPANY CREDITS
	  	6
			
	 4.1
	  	 Company Credits
	  	6
	 4.2
	  	 Vesting
	  	6
		
	 ARTICLE V ACCOUNTS
	  	6
			
	 5.1
	  	 Account
	  	6
	 5.2
	  	 Interest Credited to Accounts at Least Monthly
	  	7
	 5.3
	  	 Determination of Interest Rate
	  	7
		
	 ARTICLE VI BENEFIT DISTRIBUTIONS AND ACCOUNT WITHDRAWALS
	  	7
			
	 6.1
	  	 Benefit Amount
	  	7
	 6.2
	  	 Timing of Distributions
	  	7
	 6.3
	  	 Planned Benefit Distributions
	  	8
	 6.4
	  	 Distribution Following a Change of Control
	  	8
	 6.5
	  	 Form of Distribution of Benefits
	  	8
	 6.6
	  	 Method of Distribution Following Plan Termination
	  	9
	 6.7
	  	 Death Benefits
	  	9
	 6.8
	  	 Early Withdrawal
	  	9
	 6.9
	  	 Financial Hardship Withdrawal
	  	10
	 6.10
	  	 Limitation on Distributions to Covered Employees
	  	10
	 6.11
	  	 Tax Withholding
	  	11
		
	 ARTICLE VII BENEFICIARIES
	  	11
			
	 7.1
	  	 Designation of Beneficiary
	  	11
	 7.2
	  	 No Designated Beneficiary
	  	11
		
	 ARTICLE VIII TRUST OBLIGATION TO PAY BENEFITS
	  	11
			
	 8.1
	  	 Deferrals Transferred to the Trust
	  	11

  

 TABLE OF CONTENTS 
 (Continued) 
  

					
	 	  	 	  	Page

	 8.2
	  	 Source of Benefit Payments
	  	11
	 8.3
	  	 Investment Discretion
	  	11
	 8.4
	  	 No Secured Interest
	  	11
		
	 ARTICLE IX PLAN ADMINISTRATION, AMENDMENT AND TERMINATION
	  	12
			
	 9.1
	  	 Committee Powers and Responsibilities
	  	12
	 9.2
	  	 Decisions of the Committee
	  	13
	 9.3
	  	 Plan Amendment
	  	13
	 9.4
	  	 Plan Termination
	  	13
	 9.5
	  	 Additional Power and Responsibility Following a Change of Control
	  	13
		
	 ARTICLE X MISCELLANEOUS
	  	14
			
	 10.1
	  	 No Assignment
	  	14
	 10.2
	  	 Successors
	  	14
	 10.3
	  	 No Employment Agreement
	  	14
	 10.4
	  	 Attorneys’ Fees
	  	14
	 10.5
	  	 Arbitration
	  	14
	 10.6
	  	 Governing Law
	  	14
	 10.7
	  	 Entire Agreement
	  	14

  

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 COST[w1] PLUS, INC. 
 DEFERRED COMPENSATION PLAN 
  
 As amended and restated effective May 21, 2004 
  
 THE COST PLUS, INC. DEFERRED COMPENSATION PLAN (the “Plan”) is adopted effective October 1, 1997, and amended and restated effective May 21, 2004, by COST PLUS, INC., a California corporation (“Company”), for the purpose
of providing a tax-deferred capital accumulation program through the deferral of Salary and Bonuses as well as additional corporate contributions to a select group of management or highly compensated employees of the Company and its subsidiaries.
This Plan is intended to be an unfunded, nonqualified deferred compensation plan. Plan participants shall have the status of unsecured creditors of the Company with respect to the payment of Plan benefits. 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Whenever used herein, the masculine pronoun shall be deemed to include the feminine, and the singular to include the plural, unless the context clearly
indicates otherwise, and the following definitions shall govern the Plan: 
  
 1.1 “Accounts” means the book entry account(s) established under the Plan for each Participant to which are credited Salary Deferrals, Bonus Deferrals, Company Credits, and the Interest with respect
thereto. Account balances shall be reduced by any distributions made to the Participant or the Participant’s Beneficiary(ies) therefrom and any charges that may be imposed on such Account pursuant to the terms of the Plan. 
  
 1.2 “Benchmark Fund” shall mean one or more of the mutual
funds or contracts selected by the Committee pursuant to Section 5.3.1. 
  
 1.3 “Beneficiary” means one, some, or all (as the context shall require) of those persons, trusts or other entities designated by a Participant to receive the undistributed value of his or her Account following the
Participant’s death. 
  
 1.4 “Benefit Distribution
Election” means the election, whereby a Participant may elect an optional form of Benefit distribution pursuant to Section 6.5.3, a planned Distribution Date pursuant to Section 6.3 or an early-withdrawal of Benefits pursuant to Section
6.8. Such election shall be made in such manner as may be prescribed by the Committee from time to time. 
  
 1.5 “Benefit(s)” means the total vested amount credited to a Participant’s Account. 
  
 1.6 “Board of Directors” or “Board” means
the Board of Directors of the Company. 
  
 1.7
“Bonus” shall mean cash amounts, if any, paid under such of the Employer’s bonus plans as may be applicable to a Participant. 
  

 1.8 “Bonus Deferral” means the amount or percentage of a Participant’s Bonus that
the Participant elects to defer pursuant to Article III. 
  
 1.9
“Change of Control” means (a) the purchase or other acquisition by any person(s) or entity(ies), within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934 (the “Act”) or any comparable successor
provisions, of beneficial ownership (within the meaning of Rule 13d-3 under the Act) of thirty percent (30%) or more of the outstanding shares of common stock or the combined voting power of the Employer’s outstanding voting securities; (b) the
approval by the Employer’s shareholders of a reorganization, merger or consolidation transaction when after such transaction the Employer’s shareholders own less than fifty percent (50%) of the combined voting power owned before such
transaction; (c) a dissolution or liquidation of the Employer; or (d) the sale of all or substantially all of the Employer’s assets. 
  
 1.10 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 1.11 “Committee” means the Deferred Compensation Committee composed of five or more (but always an odd
number) individuals appointed by the Board, or following a Change of Control, by the Committee, to function as the Plan administrator. The Deferred Compensation Committee shall interpret and administer this Plan and take such other actions as may be
specified herein. 
  
 1.12 “Company” means Cost
Plus, Inc., a California corporation, and any successor organization thereto. 
  
 1.13 “Company Credit” means an amount credited to a Participant’s Account by the Company in its discretion on behalf of a Participant pursuant to Article IV. 
  
 1.14 “Deferral Election” means the election whereby a
Participant elects to make Salary Deferrals and/or Bonus Deferrals to the Plan. Such Deferral Election shall be made in such manner as may be prescribed by the Committee from time to time. 
  
 1.15 “Distribution Date” means the date on which
distribution of a Participant’s Benefits is made or commenced pursuant to Article VI. 
  
 1.16 “Effective Date” means the date on which the Plan shall be first effective, which is October 1, 1997. 
  
 1.17 “Eligible Employee” means an employee of the Employer who is designated by the Committee, in its sole discretion, as a member of the
select group of management and highly compensated employees who are eligible to participate in the Plan. 
  
 1.18 “Employer” means the Company or a subsidiary thereof that has adopted this Plan. 
  
 1.19 “Entry Date” means March 1 of each year. 
  

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 1.20 “Independent Plan Administrator” means the entity selected by the Committee
pursuant to Section 9.5 hereof. 
  
 1.21 “Initial Entry
Date” means October 1, 1997, or, if later, the first day of the month following the date on which an individual is designated as an Eligible Employee who is eligible to participate in the Plan. 
  
 1.22 “Interest” means the investment return or loss
determined in accordance with Article V, which shall be credited to the Participant’s Account. 
  
 1.23 “Interest Rate” shall have the meaning set forth in Section 5.3.3. 
  
 1.24 “Participant” means an Eligible Employee who has elected to participate in the Plan by submitting a
Deferral Election to the Committee. A Participant shall also mean an Eligible Employee for whom Company Credits are made, regardless of whether such Eligible Employee has submitted a Deferral Election Form. 
  
 1.25 “Plan” means this Cost Plus, Inc. Deferred Compensation
Plan, effective October 1, 1997, as it may be amended from time to time in the future. 
  
 1.26 “Plan Year” means the 12-month period beginning on March 1 and ending on February 28 of each calendar year, except the first Plan Year shall be the period commencing on the Effective Date and
next ending on February 28 thereafter. 
  
 1.27
“Salary” shall mean the base salary paid by the Employer, but shall not include any other form of compensation, whether taxable or non-taxable, including, but not limited to, Bonuses, commissions, incentive payments, non-monetary
awards and other forms of additional compensation. 
  
 1.28
“Salary Deferral” means the amount or percentage of a Participant’s Salary that the Participant has elected to defer pursuant to Article III. 
  
 1.29 “Total Disability” means a determination by the Social Security Administration that the Participant is
totally and permanently disabled and eligible for Social Security disability benefits or by the insurer under the Company’s long-tern disability insurance policy that the Participant is disabled and eligible for long-term disability benefits
under such policy. 
  
 1.30 “Trust” means the
legal entity created by the Trust Agreement. 
  
 1.31
“Trust Agreement” means that trust agreement entered into in connection with this Plan and any amendments thereto. The Trust Agreement is attached to this Plan as Exhibit A. 
  
 1.32 “Trustee” means the original Trustees named in the
Trust Agreement and any duly appointed successor or successors thereto. 
  

 -3- 

 1.33 “Year of Service” means a period of 12 consecutive months during which the
Participant is employed by the Employer. Employment commences on the date the Participant first performs an hour of service for the Employer and ends on the date that the Participant quits, retires, is discharged, is determined to be Totally
Disabled or dies. 
  
 ARTICLE II 
  
 ELIGIBILITY 
  
 2.1 Eligibility. Eligibility for participation in the Plan shall be
limited to key management or highly compensated employees of the Employer who are selected by the Committee, in its sole discretion, to participate in the Plan. Individuals who are in this select group shall be notified as to their eligibility to
participate in the Plan. 
  
 2.2 Commencement of
Participation. An Eligible Employee may begin participation in the Plan upon his Initial Entry Date or any subsequent Entry Date thereafter, subject to making a Deferral Election Form pursuant to Article III. In addition, participation of an
Eligible Employee who has not otherwise commenced participation in the Plan, shall commence when a Company Credit is made to the Account of such Eligible Employee pursuant to the provisions of Article IV. 
  
 2.3 Cessation of Participation. Active participation in the Plan shall
end when a Participant’s employment terminates for any reason. No contributions to the Plan shall be made with respect to Salary or Bonuses paid after such termination date. Upon termination of employment, a Participant shall remain an inactive
Participant in the Plan until all of the Benefits to which he or she is entitled under this Plan have been paid in full. 
  
 ARTICLE III 
  
 DEFERRALS 
  
 3.1 Salary Deferrals. 
  
 3.1.1
As of the Participant’s Initial Entry Date, the Participant may elect to reduce his or her Salary by the amount or percentage (up to a maximum of 70% of Salary) set forth in a written and signed Deferral Election that is filed with the
Committee. Salary Deferrals shall be subject to the limitations of Section 3.3 below. The Salary Deferral shall not be paid to the Participant, but shall be withheld from the Participant’s Salary and an amount equal to the Salary Deferral shall
be credited to the Participant’s Account. 
  
 3.1.2 Each election to make or cease Salary Deferrals shall apply only to Salary earned after the effective date of such election. Generally, Salary Deferrals shall commence on the first day of the pay period which begins on or after the
effective date of the election. 
  
 3.1.3 An
election to make Salary Deferrals shall be revocable throughout the Plan Year for which it was made. If a Participant revokes his or her election to make Salary Deferrals, no 

  

 -4- 

 
further Salary Deferrals shall be made with respect to such Participant until the subsequent Plan Year. Effective as of any subsequent Plan Year, a
Participant may modify or terminate an election to make Salary Deferrals by filing a new election for such subsequent Plan Year. 
  
 3.1.4 Unless amended to cease or modify Salary Deferrals, the Participant’s Salary Deferral election shall continue in effect until
the Participant terminates employment with the Employer. 
  
 3.2
Bonus Deferrals. 
  
 3.2.1 As of the
Participant’s Initial Entry Date, and the first day of each Plan Year thereafter, the Participant may elect to reduce his or her cash Bonus payable with respect to the Plan Year by the amount or percentage (up to a maximum of 100%) set forth in
a written and signed Deferral Election Form that is filed with the Committee. Bonus Deferrals shall be subject to the limitation provisions of Section 3.3 below. The Bonus Deferral shall not be paid to the Participant, but shall be withheld from the
Participant’s Bonus payments and an amount equal to the Bonus Deferral shall be credited to the Participant’s Account. For purposes of this Section 3.2, a Bonus shall be payable with respect to a Plan Year if it relates to a Plan Year or
is calculated based on performance during a Plan Year, regardless of when such Bonus is actually paid. 
  
 3.2.2 Notwithstanding any other provision herein to the contrary, a Participant may make a Bonus Deferral election upon his or her Initial
Entry Date only if such Initial Entry Date is at least six (6) months prior to the end of the Plan Year in which such Initial Entry Date occurs. Thereafter, a Participant’s election to make Bonus Deferrals for any Plan Year shall be effective
only if it is received by the Committee by the February 15 immediately preceding the first day of the Plan Year 
  
 3.2.3 An election to make Bonus Deferrals shall be irrevocable throughout the Plan Year for which it was made. A Participant’s Bonus
Deferral election shall be valid only for the Bonus, if any, payable with respect to the Plan Year for which it was made. A new Bonus Deferral election must be filed each year. 
  
 3.3 Limitations on Deferrals. A Participant’s Salary Deferrals and Bonus Deferrals shall be limited as follows:

  
 3.3.1 A Participant must defer a minimum of
$2,500 each Plan Year. This minimum deferral amount may be satisfied by Salary Deferrals, Bonus Deferrals or a combination of both. In the event the total deferral in a Plan Year is less than $2,500, the amount deferred during that Plan Year shall
be paid out to the Participant as soon as administratively feasible after the end of the Plan Year. 
  
 3.3.2 The Participant’s Salary and/or Bonus Deferral elections shall be reduced by the amount(s), if any, which may be necessary:

  
 3.3.2.1 To satisfy all applicable income and
employment tax withholding and FICA contributions; 
  

 -5- 

 3.3.2.2 To satisfy all garnishments or other amounts required to be withheld by
applicable law or court order. 
  
 3.3.2.3 To
satisfy contributions under the Company’s employee stock purchase plan and other welfare benefit plans. 
  
 Any salary deferral elections made under a 401(k) Plan shall be determined based on the Participant’s compensation after reduction for the Salary
Deferral and/or Bonus Deferral Contributions to this Plan. 
  
 3.4
Time for Making Deferral Elections. A Deferral Election for a Participant’s initial participation must be received by the Committee within thirty (30) days of the Participant’s Initial Entry Date and shall be effective as of the
first period which begins thereafter. A Deferral Election for any subsequent Plan Year must be received by the Committee by the February 15 preceding the first day of such Plan Year and shall be effective for the first pay period which begins in the
Plan Year for which such election is made. 
  
 3.5 Vesting.
Salary Deferrals, Bonus Deferrals and the Interest credited to the Participant’s Account with respect thereto shall be 100% vested at all times. 
  
 ARTICLE IV 
  
 COMPANY CREDITS 
  
 4.1 Company Credits. In addition to Salary and Bonus Deferrals, a Participant’s Account shall be credited with such amounts and at such times as the Employer may, in its sole discretion, determine and
communicate to the Participant. The Employer shall be under no obligation to continue to make Company Credits and may discontinue or change the amount or method of calculating the amount of such Company Credits at any time. 
  
 4.2 Vesting. A Participant shall vest in his or her Company Credits
and the Interest credited to the Participant’s Account with respect to such amounts and at such times as the Company may, in its sole discretion, specify. 
  

ARTICLE V 
  
 ACCOUNTS 
  
 5.1 Account. An Account shall be established and maintained for each Participant. The Participant’s Account shall be credited with the Participant’s Salary Deferrals, Bonus Deferrals and Company Credits, if any, made on
behalf of each Participant. The Participant’s Account shall be credited (debited) with the applicable Interest, as set forth in Section 5.2. The Participant’s Account 

  

 -6- 

 
shall be reduced by distributions therefrom and any charges which may be imposed on the Account pursuant to the terms of the Plan. 
  
 5.2 Interest Credited to Accounts at Least Monthly. Each Account shall
be credited (debited) monthly, or more frequently as the Committee may specify, in an amount equal to the Account balance on the first day of the prior month multiplied by the Interest Rate. 
  
 5.3 Determination of Interest Rate. 
  
 5.3.1 The Company shall designate the particular funds or
contracts which shall constitute the Benchmark Funds, and may, in its sole discretion, change or add to the Benchmark Funds; provided, however, that the Committee shall notify the Participants of any such change prior to the effective
date thereof. 
  
 5.3.2 Each Participant may
select among the Benchmark Funds and specify the manner in which his or her Account shall be deemed to be invested, solely for purposes of determining the Participant’s Interest Rate. The Committee shall establish and communicate the rules,
procedures and deadlines for making and changing Benchmark Fund selections. The Company shall have no obligation to acquire investments corresponding to the Participant’s Benchmark Fund selections. 
  
 5.3.3 The Interest Rate is the investment return, net of
administrative fees and investment management fees and other applicable fees or charges, of the Benchmark Fund(s) designated by Participant and other applicable fees or charges. The Interest Rate may be negative if the applicable Benchmark Fund(s)
sustain a loss. 
  
 ARTICLE VI 
  
 BENEFIT DISTRIBUTIONS AND ACCOUNT WITHDRAWALS 
  
 6.1 Benefit Amount. The value of the Participant’s Benefit shall
be equal to the vested value of the Participant’s Account on the last day of the calendar month prior to the Distribution Date, adjusted for any Salary or Bonus Deferrals or withdrawals which have been subsequently credited thereto or made
therefrom prior to the Distribution Date. 
  
 6.2 Timing of
Distributions. Benefits shall be paid (or installment payments shall commence) as soon as practicable after the earlier of 
  
 6.2.1 The first day of the month following the end of the calendar quarter in which the Participant’s employment with the Employer
terminates; or 
  
 6.2.2 The Distribution Date
designated by the Participant at least two years in advance in accordance with Section 6.3; or 
  
 6.2.3 The date that the Plan is terminated in accordance with Section 9.4. 
  

 -7- 

 6.3 Planned Benefit Distributions. 
  
 6.3.1 Two-Year Advance Election. A Participant may elect a Distribution Date by filing a Benefit
Distribution Election at such time and in such manner as the Committee shall specify. Such Benefit Distribution Election shall specify a Distribution Date that is at least two years after the date the Benefit Distribution Election is received by the
Committee. Except as otherwise provided in this Article VI the Benefit Distribution Election shall apply to the Participant’s Salary Deferrals and Bonus Deferrals and shall also apply to Company Credits, except to the extent the Company has
specified otherwise, for the Plan Year(s) specified in the Benefit Distribution Election and the Interest credited thereto until the Distribution Date, or to such lesser dollar amount as may be specified in the Benefit Distribution Election.

  
 6.3.2 Revocation or Amendment of Benefit
Distribution Election. A Participant may revoke and/or amend a Benefit Distribution Election by filing a revocation or, an amended Benefit Distribution Election at least twelve (12) months in advance of the Distribution Date specified in the
prior Benefit Distribution Election. Any new Distribution Date elected in an amended Benefit Distribution Election must be a date later than the Distribution Date specified in the prior Benefit Distribution Election. A Participant may revoke and/or
amend a Benefit Distribution Election no more than twice in such Participant’s lifetime. 
  
 6.3.3 Termination Before the Planned Distribution Date. Notwithstanding any prior Benefit Distribution Election, if the Participant
terminates employment with the Employer before his elected Distribution Date, distribution of the Participant’s Account shall commence as soon as administratively feasible after the first day of the month following the end of the quarter in
which the employment termination occurs. 
  
 6.4 Distribution
Following a Change of Control. In the event of a Change of Control, as defined in Section 1.9, the Committee may decide, in its sole discretion, that the Plan shall be terminated and all Accounts shall be distributed as soon as administratively
feasible after the termination date of the Plan. 
  
 6.5 Form
of Distribution of Benefits. 
  
 6.5.1
Installment Payments. Except as provided in Section 6.5.3, below, if all of the following requirements are met, the Participant’s Benefits shall be distributed in 60 quarterly installment payments: 
  
 6.5.1.1 The value of the Benefits payable, determined in
accordance with Section 6.1, exceeds $25,000 and the Participant has completed at least five Years of Service for the Employer; and 
  
 6.5.1.2 Benefits are payable on account of a termination of employment (A) after the Participant has attained age 55, or (B) as the result
of the Participant’s Total Disability. 
  

 -8- 

 6.5.2 Lump Sum Payments. If the requirements set forth in Section 6.5.1 are not
satisfied, then the Participant’s Benefits shall be paid in a lump sum cash payment. 
  
 6.5.3 Optional Form of Payment. A Participant who satisfies the requirements for installment payments set forth in Section 6.5.1
may elect to have his or her Benefits paid in one of the following optional forms of payment: 
  
 6.5.3.1 Lump sum cash payment; 
  
 6.5.3.2 20 quarterly installments; 
  
 6.5.3.3 40 quarterly installments. 
  
 6.5.4 An election to receive an optional form of payment may be made, revoked or amended by filing a written Benefit Distribution
Election, in the form required by the Committee, at least one year in advance of the Distribution Date. 
  
 In the absence of such timely filed election (or revocation or amendment thereof), the value of such Participant’s Benefits shall be distributed in
accordance with a previously timely filed Benefit Distribution Election, and if there are none, in accordance with the provisions of Section 6.5.1 or 6.5.2, above. 
  
 6.5.5 Installment Amounts. For purposes of this Section 6.5, installment payments shall be
substantially equal payments. The amount of each payment shall be determined by dividing the value of the Participant’s Benefits at the time of such installment by the number of payments remaining. 
  
 6.6 Method of Distribution Following Plan Termination. Generally, all
Benefits shall be paid in a lump sum cash payment following termination of the Plan. Notwithstanding the foregoing, if a lump sum payment will result in an “excess parachute payment” to a Participant, as that term is defined in the
Internal Revenue Code, the Committee, in its sole discretion, may determine that such Participant’s Account shall be paid by some other method. 
  
 6.7 Death Benefits. If a Participant dies before his Benefit payments have commenced, then such Participant’s Benefits shall be paid to his
designated Beneficiary in a lump sum cash payment as soon as administratively feasible after the Committee is notified of the Participant’s death and receives evidence satisfactory to it thereof. 
  
 6.8 Early Withdrawal. Notwithstanding any other provision of the Plan,
a Participant may withdraw ninety percent (90%) (but not less than 90%) of the total amount of his or her vested Benefits at any time. The amount so withdrawn shall be paid in a single lump sum. Upon such withdrawal, the remaining ten percent (10%)
of the total vested Benefits and any unvested Company Credits, shall be forfeited and the Participant shall have no further right thereto. Such Participant shall be prohibited from making any further Salary Deferrals or Bonus Deferrals pursuant to
the Plan and no Company Credits shall be made to the Participant’s Account for the remainder of the Plan 

  

 -9- 

 
Year in which an early withdrawal occurs and for the entire Plan Year thereafter. A Participant shall be permitted to take a maximum of two early
withdrawals. 
  
 6.9 Financial Hardship Withdrawal. With
the consent of the Committee, a Participant may withdraw up to one hundred percent (100%) of his or her vested Benefits as may be required to meet a sudden unforeseeable financial emergency of the Participant. Such hardship distribution shall be
subject to the following provisions: 
  
 6.9.1
The hardship withdrawal must be necessary to satisfy the unforeseeable emergency and no more may be withdrawn than is required to relieve the financial need after taking into account other resources that are reasonably available to the Participant
for this purpose. 
  
 6.9.2 The Participant must
certify that the financial need cannot be relieved: (i) through reimbursement or compensation by insurance or otherwise; (ii) by reasonable liquidation of the Participant’s assets, to the extent such liquidation would not itself cause an
immediate and heavy financial need; (iii) by discontinuing the Participant’s Salary and Bonus Deferrals; or (iv) by borrowing from commercial sources on reasonable commercial terms. 
  
 6.9.3 An unforeseeable financial emergency is a severe financial hardship to Participant resulting from a
sudden and unexpected illness or accident of Participant or of a dependent of Participant (as defined in Section 152(a) of the Internal Revenue Code), loss of Participant’s property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of Participant. Neither the need to pay tuition expenses on behalf of the Participant or the Participant’s spouse or children nor the desire to purchase a home shall
be considered an unforeseeable emergency. 
  
 6.9.4 The Committee, in its sole discretion, shall determine if there is an unforeseeable financial emergency, if the Participant has other resources to satisfy such emergency and the amount of the hardship withdrawal that is required to
alleviate the Participant’s financial hardship. 
  
 6.9.5 A Participant shall be prohibited from making any further Salary Deferrals and Bonus Deferrals and the Employer shall not make any Company Credits pursuant to the Plan for the remainder of the Plan Year in which a financial hardship
withdrawal occurs and for the entire Plan Year thereafter. 
  
 6.10 Limitation on Distributions to Covered Employees Prior to a Change of Control. Notwithstanding any other provision of this Article VI in the event that, prior to a Change of Control, the Participant is a “covered
employee” as that term is defined in Section 162(m)(3) of the Code, or would be a covered employee if Benefits were distributed in accordance with his or her Benefit Distribution Election or early withdrawal request, the maximum amount which
may be distributed from the Participant’s Account in any Plan Year shall not exceed one million dollars ($1,000,000) less the amount of compensation paid to the Participant in such Plan Year which is not “performance-based” (as
defined in Code Section 162(m)(4)(C)), which amount shall be reasonably determined by the Committee at the time of the proposed distribution. Any amount which is not 

  

 -10- 

 
distributed to the Participant in a Plan Year as a result of this limitation shall be distributed to the Participant in the next Plan Year, subject to
compliance with the foregoing limitation set forth in this Section 6.10. 
  
 6.11 Tax Withholding. Distribution and withdrawal payments under this Article VI shall be subject to all applicable withholding requirements for state and federal income taxes and to any other federal, state or
local taxes that may be applicable to such payments. 
  
 ARTICLE
VII 
  
 BENEFICIARIES 
  
 7.1 Designation of Beneficiary. The Participant shall have the right
to designate on such form as may be prescribed by the Committee, one or more Beneficiaries to receive any Benefits due under Article VI which may remain unpaid on the date of the Participant’s death. The Participant shall have the right at any
time to revoke such designation and to substitute one or more other Beneficiaries. 
  
 7.2 No Designated Beneficiary. If, upon the death of the Participant, there is no valid Beneficiary designation, the Beneficiary shall be the Participant’s surviving spouse. In the event there is no
surviving spouse, then the Participant’s Beneficiary shall be the Participant’s estate. 
  
 ARTICLE VIII 
  
 TRUST OBLIGATION TO PAY BENEFITS 
  
 8.1
Deferrals Transferred to the Trust. The Employer may transfer Salary Deferrals, Bonus Deferrals or Company Credits, if any, made by or on behalf of a Participant to the Trustee to be held pursuant to the terms of the Trust Agreement.

  
 8.2 Source of Benefit Payments. All benefits payable to
a Participant hereunder shall be paid by the Trustee to the extent of the assets held in the Trust by the Trustee, and by the Employer to the extent the assets in the Trust are insufficient to pay a Participant’s Benefits as provided under this
Plan. 
  
 8.3 Investment Discretion. The Benchmark Funds
established pursuant to Section 5.3 shall be for the sole purpose of determining the Interest Rate to be used for determining the Interest credited to the Participant’s Account. Neither the Trustee nor the Committee shall have any obligation to
invest the Participants’ Account in accordance with his deemed investment directions or in any other investment. 
  
 8.4 No Secured Interest. Except as otherwise provided by the Trust Agreement, the assets of the Trust, shall be subject to the claims of creditors
of the Employer. Except as provided in the Trust Agreement, the Participant (or the Participant’s Beneficiary) shall be a general unsecured creditor of the Employer with respect to the payment of Benefits under this Plan. 
  

 -11- 

 ARTICLE IX 
  
 PLAN ADMINISTRATION, AMENDMENT AND TERMINATION 
  
 9.1 Committee Powers and Responsibilities. The Committee shall have complete control of the administration of the Plan herein set forth with all
powers necessary to enable it properly to carry out its duties in that respect. Not in limitation, but in amplification of the foregoing, the Committee shall have the power and authority to: 
  
 9.1.1 Construe the Plan and Trust Agreement to determine all
questions that shall arise as to interpretations of the Plan’s provisions including determination of which individuals are Eligible Employees and the determination of the amounts credited to a Participant’s Account, and the appropriate
timing and method of Benefit payments; 
  
 9.1.2
Establish reasonable rules and procedures which shall be applied in a uniform and nondiscriminatory manner with respect to Deferral Elections and Benefit Distribution Elections; 
  
 9.1.3 Establish the rules and procedures by which the Plan will operate that are consistent with the terms
of the Plan documents; 
  
 9.1.4 Compile and
maintain all records it determines to be necessary, appropriate or convenient in connection with the administration of the Plan; 
  
 9.1.5 Adopt amendments to the Plan document and/or the Trust Agreement which are deemed necessary or desirable to facilitate
administration of the Plan and/or to bring these documents into compliance with all applicable laws and regulations, provided that the Committee shall not have the authority to adopt any Plan amendment that will result in increased Company
Credits or substantially increased administrative costs unless such amendment is contingent upon ratification by the Board before becoming effective; 
  
 9.1.6 Employ such persons or organizations to render service or perform services with respect to the administrative responsibilities of
the Committee under the Plan as the Committee determines to be necessary and appropriate, including but not limited to attorneys, accountants, and benefit, financial and administrative consultants; 
  
 9.1.7 Select, review and retain or change the Benchmark
Funds which are used for determining the Interest Rate under the Plan; 
  
 9.1.8 Select, review and retain or change the Benchmark Funds used to determine the Interest Rate; 
  
 9.1.9 Direct the investment of the assets of the Trust; 
  
 9.1.10 Review the performance of the Trustee with respect to the Trustee’s duties, responsibilities and
obligations under the Plan and Trust Agreement. 
  

 -12- 

 9.1.11 Take such other action as may be necessary or appropriate to the management and
investment of the Plan assets. 
  
 9.2 Decisions of the
Committee. Decisions of the Committee made in good faith upon any matter within the scope of its authority shall be final, conclusive and binding upon all persons, including Participants and their legal representatives or Beneficiaries. Any
discretion granted to the Committee shall be exercised in accordance with rules and policies established by the Committee. 
  
 9.3 Plan Amendment. This Plan may be amended by the Company at any time in its sole discretion. Additionally, the Plan may be amended upon an
action of the members of the Committee, subject to the provisions in Section 9.1.1. However, no amendment may be made that alters the nature of a Deferral Election or Benefit Distribution Election or which would reduce the amount credited to
a Participant’s Account on the date of such amendment; and provided further that no amendment that affects the Trustee’s duties and obligations under the Plan may be made without the Trustee’s consent. 
  
 9.4 Plan Termination. The Committee may terminate the Plan in its
entirety at any time upon fifteen (15) days notice to the Participants. The termination of the Plan shall automatically revoke all outstanding Benefit Distribution Elections and all elections to have Benefits paid in installments. If the Plan is
terminated, all benefits shall be paid as set forth in Section 6.6. Any amounts remaining in the Trust after all benefits have been paid shall revert to the Employer. 
  
 9.5 Independent Plan Administrator. In the event of a Change of Control, the Committee may, in its sole discretion,
engage an Independent Plan Administrator to assume administrative duties relating to the Plan under the direction of the Committee. The fees and expenses of the Independent Plan Administrator shall be paid by the Company. 
  
 9.6 No New Participants Following Change of Control. No individual may
commence participation in the Plan following a Change of Control. 
  
 9.7 Deferrals Following a Change of Control. Deferrals shall continue after a Change of Control until, (i) with respect to Salary Deferrals, the first regularly scheduled salary payroll date on or after the Change of Control, and
(ii) with respect to Bonus Deferrals, the first regularly scheduled bonus pay date on or after the Change of Control. 
  
 9.8 Post-Change of Control Election Change. Subject to the terms, conditions and penalties imposed by the Committee, in its sole discretion,
following a Change of Control, each Participant may be afforded the opportunity to elect to change how and when his or her Accounts under the Plan shall be distributed (“Post-COC Election”). Such a Post-COC Election shall be made within
the time and on a form as may be prescribed by the Committee, provided that a Post-COC Election may be made no later than the 90th day after the date of the Change of Control. A Post-COC Election shall be binding on the Participant, Independent Plan Administrator, the Trustee, the Company and any successor to the Company and shall supersede any prior election
for the Account to which it applies. 
  

 -13- 

 ARTICLE X 
  
 MISCELLANEOUS 
  
 10.1 No Assignment. The right of any Participant, any Beneficiary, any Policy Beneficiary or any other person to the payment of any benefits under
this Plan shall not be assigned, transferred, pledged or encumbered. 
  
 10.2 Successors. This Plan shall be binding upon and inure to the benefit of the Employer, its successors and assigns and the Participant and his or her heirs, executors, administrators and legal representatives. 
  
 10.3 No Employment Agreement. Nothing contained herein shall be
construed as conferring upon any Participant the right to continue in the employ of the Employer as an employee. 
  
 10.4 Attorneys’ Fees. If the Employer, the Participant, any Beneficiary, any Policy Beneficiary, the Trustee and/or a successor in interest to
any of the foregoing, brings legal action to enforce any of the provisions of this Plan, the prevailing parry in such legal action shall be reimbursed by the other party, the prevailing party’s costs of such legal action including, without
limitation, reasonable fees of attorneys, accountants and similar advisors and expert witnesses. 
  
 10.5 Arbitration. Any dispute or claim relating to or arising out of this Plan shall be fully and finally resolved by binding arbitration conducted
by the American Arbitration Association in Santa Clara County, California. 
  
 10.6 Governing Law. This Plan shall be construed in accordance with and governed by the laws of the State of California. 
  

10.7 Indemnification. The Committee and each of its members are indemnified by the Company against any and all liabilities incurred by reason of
any action taken in good faith pursuant to the provisions of the Plan. 
  
 10.8 Entire Agreement. This Plan constitutes the entire understanding and agreement with respect to the subject matter contained herein, and there are no agreements, understandings, restrictions, representations or warranties among
any Participant and the Employer other than those as set forth or provided for herein. 
  

 -14-

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