Document:

2004 Share Option Plan

 EXHIBIT 10.1 
  
 JOYO.COM LIMITED 
  
 2004 SHARE OPTION PLAN 
  

 TABLE OF CONTENT 
  

			
	 ARTICLE 1 PURPOSE
	  	1
		
	 ARTICLE 2 DEFINITIONS
	  	1
		
	 ARTICLE 3 ADMINISTRATION
	  	2
		
	 ARTICLE 4 ELIGIBILITY
	  	3
		
	 ARTICLE 5 SHARES SUBJECT TO PLAN
	  	4
		
	 ARTICLE 6 GRANT OF OPTIONS
	  	4
		
	 ARTICLE 7 EXERCISE OF OPTIONS
	  	4
		
	 ARTICLE 8 LIMITATION ON EXERCISES
	  	5
		
	 ARTICLE 9 EXERCISE PRICE
	  	5
		
	 ARTICLE 10 PAYMENT
	  	6
		
	 ARTICLE 11 CASHLESS EXERCISE
	  	6
		
	 ARTICLE 12 OPTION PERIOD
	  	6
		
	 ARTICLE 13 TERMINATION OF EMPLOYMENT
	  	6
		
	 ARTICLE 14 NON-ASSIGNABILITY
	  	7
		
	 ARTICLE 15 RIGHT OF FIRST REFUSAL
	  	7
		
	 ARTICLE 16 AMENDMENT OR DISCONTINUANCE
	  	8
		
	 ARTICLE 17 TERM
	  	8
		
	 ARTICLE 18 RECAPITALIZATION, MERGER AND CONSOLIDATION
	  	8
		
	 ARTICLE 19 LIQUIDATION OR DISSOLUTION
	  	9
		
	 ARTICLE 20 NO RIGHT TO CONTINUED EMPLOYMENT
	  	9
		
	 ARTICLE 21 INDEMNIFICATION OF BOARD AND COMMITTEE
	  	9
		
	 ARTICLE 22 DISQUALIFYING DISPOSITION
	  	9
		
	 ARTICLE 23 TAX REQUIREMENT
	  	10
		
	 ARTICLE 24 GOVERNING LAW
	  	10

  

 ARTICLE 1 
 PURPOSE 
  
 The purpose of this Plan is to:

  

	(a)	to align the interests of the employees with the performance of the business of the Company and its Subsidiaries; 

  

	(b)	to provide additional incentives to the employees to continue their services for the Company and its Subsidiaries; and 

  

	(c)	to attract and retain the best available persons to positions of responsibility with the Company and its Subsidiaries. 

  
 This Plan is intended to replace any other share option plan that the Company may previously
have had in place. 
  
 ARTICLE 2 
 DEFINITIONS 
  
 For the purpose of the Plan: 
  
 “Administrator” means the Board or the Committee administering the Plan under Article 3. 
  
 “Applicable Laws” means the requirements relating to the administration of share option plans under U.S. state corporate laws, U.S. federal and state
securities laws, the Code, the regulations or rules of any share exchange or quotation system on which the Shares are listed or quoted and the applicable laws of any other country or jurisdiction where Options are granted under the Plan. 

 
 “Board” means the board of directors of the Company. 
  
 “Cashless Exercise” means the mechanism described in Article 11. 

 
 “Code” means the U.S. Internal Revenue Code of 1986, as amended.

  
 “Committee” means a committee appointed by the Board in
accordance with Article 3. 
  
 “Company” means Joyo.com Limited,
a company registered under the laws of the British Virgin Islands. 
  
 “Date of Grant” means the effective date on which an option is awarded to an employee as set out in the employee’s Option Agreement. 
  
 “Effective Date” means the date the Plan was approved and adopted by the Board. 
  

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 “Fair Market Value” means, as of any date, the value of Shares determined as follows: 
  

	 	(i)	if the Shares are listed on any established share exchange or national market system, its Fair Market Value shall be the closing sales price for such Shares (or the closing bid, if
no sales were reported) as quoted on such exchange or system for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

  

	 	(ii)	if the Shares are regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked
prices for the Shares on the last market trading day prior to the day of determination; or 

  

	 	(iii)	in the absence of an established market for the Shares, its Fair Market Value shall be determined in good faith by the Administrator. 

  
 “Incentive Share Option” means Option which is intended to qualify as an
incentive share option under Section 422 of the Code. 
  
 “Non-statutory
Share Option” means an Option which is not intended to qualify as an Incentive Share Option. 
  
 “Option” means a share option granted under the Plan to purchase shares of the Company. 
  
 “Option Agreement” means the agreement between the Company and an Optionee evidencing the terms and conditions of the individual grant of an Option.

  
 “Option Period” means the period during which an Option may
be exercised commencing on the date when the Option vests in the Optionee and ending when the Option expires or is terminated in accordance with the Plan or the Option Agreement. 
  
 “Optionee” means the holder of an outstanding Option. 
  
 “Plan” means this 2004 Joyo.com Limited Share Option Plan, as amended from time to time. 
  
 “Shares” means the common shares of the Company having a par value of US
$0.01. 
  
 “Subsidiary” means any entity in which the Company
owns or controls directly or indirectly 50% or more of the total combined voting power of all classes of shares or other securities in such entity (including without limitation Beijing Shenzhou Joyo Science & Technology Development Co., Ltd., a
wholly foreign-owned enterprise organized under the laws of the People’s Republic of China; Beijing Century Joyo Information Technology Co., Ltd.; Beijing Century Joyo Courier Service Co., Ltd.), and “Subsidiaries” means all of
such entities. 
  
 ARTICLE 3 
 ADMINISTRATION 
  

	(a)	 The Plan shall be administered by the Board or a Committee appointed by the Board which shall consist of not less than two members from the Board or the
Company’s compensation committee for the purpose of administering the Plan. If 

  

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no Committee is appointed, the Board shall have the powers described in this Article. 

  

	(b)	Any member of the Committee may be removed at any time, with or without cause, by resolution of the Board. Any vacancy in the membership of the Committee may be filled by
appointment by the Board. The Committee shall select one of its members to act as its Chairman and shall make such rules and regulations for its operation as it deems appropriate. A majority of the Committee shall constitute a quorum, and any
decision of a majority of the members of the Committee present at a meeting at which a quorum has formed shall be a decision of the Committee. 

  

	(c)	Subject to the provisions of the Plan and, in the case of a Committee, the specific duties delegated by the Board to such Committee, the Administrator shall have the authority in
its discretion: 

  

	 	(i)	to determine the Fair Market Value; 

  

	 	(ii)	to select the employees to whom Options may from time to time be granted; 

  

	 	(iii)	to determine the number of Shares to be the subject of each Option granted; 

  

	 	(iv)	to approve forms of agreement for use under the Plan; 

  

	 	(v)	to determine the terms and conditions, of any Option granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options
may be exercised (which may be based on performance criteria), vesting acceleration, and any restriction or limitation regarding any Option or the Shares relating thereto, in each case based on such factors as the Administrator, in its sole
discretion, shall determine; 

  

	 	(vi)	to prescribe, amend and rescind rules, regulations and procedures relating to the Plan; and 

  

	 	(vii)	to construe and interpret the terms of the Plan and awards granted pursuant to the Plan. 

  
 ARTICLE 4 
 ELIGIBILITY 
  

	(a)	Any director, employee or consultant of the Company or any of its Subsidiaries whose judgment, initiative and efforts contributed or may be expected to contribute to the performance
of the Company is eligible to participate in the Plan. The adoption of this Plan shall not be deemed to give any director, employee or consultant of the Company any right to be granted an Option except as may be evidenced by an Option Agreement
executed on behalf of the Company. 

  

	(b)	Non-statutory Share Options may be granted to directors, employers and consultants of the Company and its Subsidiaries. Incentive Share Options may only be granted to employees of
the Company and its Subsidiaries. 

  

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 ARTICLE 5 
 SHARES SUBJECT TO PLAN 
  
 Subject to the
provision of Article 18, the maximum aggregate number of Shares which may be subject to Options granted under the Plan is Forty Six Million One Hundred Fifty Three Thousand Eight Hundred and Forty Six (46,153,846) Shares. Shares which are the
subject of Options granted under the Plan may be made available from either authorized but unissued Shares or Shares held by the Company in its treasury. Shares which are the subject of Options which have expired, terminated or become unexercisable
shall become available for future grant under the Plan. However, Shares that have actually been issued under the Plan, upon the exercise of an Option, shall not be returned to the Plan and shall not become available for future distribution under the
Plan. 
  
 ARTICLE 6 
 GRANT OF OPTIONS 
  

	(a)	Options granted under the Plan may be Incentive Share Options or Non-statutory Share Options as determined by the Administrator at the time of grant. 

  

	(b)	Unless the Administrator otherwise determines, the grant of Options (if any) shall be made on an annual basis on or around July 1 in each calendar year. Employees who commence
employment with the Company on or before June 30 in a calendar year shall be eligible for the grant of options on July 1 in that calendar year. Employees who commence employment with the Company after June 30 in a calendar year shall be eligible for
the grant of options on July 1 of the next calendar year. 

  

	(c)	The grant of Options shall be evidenced by Option Agreements executed on behalf of the Company setting forth the total number of Shares subject to the Option, the exercise price,
the term of the Option, the Date of Grant, and such other terms and conditions as approved by the Administrator. 

  

	(d)	The Plan shall be submitted to the Company’s shareholders for approval. Prior to obtaining shareholders approval, the Administrator may grant Options under the Plan which shall
only become effective upon obtaining such approval. 

  
 ARTICLE 7 
 EXERCISE OF OPTIONS 
  

	(a)	An Option shall be exercised, in whole or in part, by delivery of an exercise notice which shall state the number of Shares with respect to which the Option is being exercised and
be signed by the Optionee. The Exercise Notice shall be accompanied by the payment of the aggregate exercise price for the number of Shares with respect to which the Option is being exercised. 

  

	(b)	 Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), the Optionee
shall not have the right to vote or receive dividends or any other rights as a shareholder with respect to the Shares, notwithstanding the exercise of the 

  

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Option. No adjustment will be made for any dividends or other similar rights declared prior to the issue of the Shares. 

  

	(c)	The Administrator may determine that, upon the grant of an Option or the exercise of an Option by an Optionee, the Option or Shares (as the case may be) be issued and delivered to a
trustee or escrow agent appointed by the Company to hold on behalf of the Optionee. Beneficial ownership of the Option or Shares (as the case may be) shall remain with the Optionee. The trustee shall act in accordance with the Optionee’s
instructions in respect of the exercise of the Option and/or the sale of the Shares. The Optionee may elect to keep any proceeds from the sale of the Shares in the Optionee’s account under the trust or escrow arrangement or to have the proceeds
distributed to the Optionee pursuant to such channels as the Company reasonably determines appropriate. 

  
 ARTICLE 8 
 LIMITATION ON EXERCISES

  

	(a)	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 shall comply with Applicable Laws
and shall, at the discretion of the Administrator, be further subject to the approval of counsel for the Company with respect to such compliance. 

  

	(b)	As a condition to the exercise of an Option, the Administrator may require the person exercising such Option to represent and warrant to the Company in writing that the Shares are
being acquired only for investment and not with a view to sale or distribution of such Shares. 

  

	(c)	Notwithstanding the designation of an Option in the relevant Option Agreement as an Incentive Share Option, if the aggregate Fair Market Value of the Shares in respect of the
Incentive Share Option exercised by an Optionee exceeds US$100,000 in any calendar year, such Incentive Share Option shall be treated as a Non-statutory Share Option. 

  
 ARTICLE 9 
 EXERCISE PRICE 
  

	(a)	Subject to the provisions of this Article, the per share exercise price for the Shares to be issued upon the exercise of an Option shall be such price as is determined by the
Administrator. 

  

	(b)	In the case of an Incentive Share Option, the exercise price shall not be less than 100% of the Fair Market Value per share of the Shares on the Date of Grant.

  

	(c)	In the case of an Incentive Share Option granted to an employee who owns shares representing more than 10% of the voting power of all classes of shares of the Company, or its
Subsidiaries, the exercise price shall be no less than 110% of the Fair Market Value per share of the Shares on the Date of Grant. 

  

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 ARTICLE 10 
 PAYMENT 
  
 The exercise price to be paid
for the Shares to be issued upon the exercise of an Option, including the method of payment, shall be determined by the Administrator. Such consideration, at the discretion of the Administrator, may consist of: 
  

	(a)	cash; 

  

	(b)	check; 

  

	(c)	promissory note; 

  

	(d)	other Shares which: (i) in the case of Shares acquired by the exercise of an Option, have been owned by the Optionee for more than six (6) months on the date of surrender; and (ii)
have a Fair Market Value on the date of surrender equal to the exercise price; or 

  

	(e)	consideration received by the Company under a Cashless Exercise implemented by the Company in accordance with the Plan. 

  
 ARTICLE 11 
 CASHLESS EXERCISE 
  
 Where an Optionee exercises his Option and elects not to pay the exercise price in cash, the Administrator may, in its absolute discretion, substitute his right to acquire the number of Shares which is the subject of the Option being
exercised with a payment of a cash sum (in full and final satisfaction of such right) equal to the Fair Market Value of those Shares less the exercise price that would otherwise have been payable. 
  
 ARTICLE 12 
 OPTION PERIOD 
  
 The
Option Period of, each Option shall begin and terminate on the dates specified by the Administrator in the relevant Option Agreement, but shall not terminate later than ten (10) years from the Date of Grant. No Option granted under the Plan may be
exercised at any time after the expiry of the Option Period. 
  
 ARTICLE 13 
 TERMINATION OF EMPLOYMENT 
  
 In the event an Optionee shall cease to be employed by the Company or its Subsidiaries, such Optionee may only exercise his Option as
follows: 
  

	(a)	 In the event of termination of employment as the result of the death of the Optionee the Option may be exercised for a period of one (1) year after the
Optionee’s death or until the expiry of the Option Period, whichever is earlier, to the extent of the outstanding portion of the Option which has vested but is unexercised as of the date of the Optionee’s death. Such Option may only be
exercised by the personal representative of the Optionee’s estate or by any 

  

 6 

	 	 
successor who has acquired the right to exercise the Option under a will or the laws of succession. 

  

	(b)	In the event of termination of employment as the result of a total and permanent disability which prevents the Optionee from performing his duties, the Option may be exercised by
the Optionee or his guardian for a period of six (6) months after such termination or until the expiry of the Option Period, whichever is earlier, to the extent of the outstanding portion of the Option which has vested but is unexercised on the date
of such termination. 

  

	(c)	In the event of termination of employment for reasons other than as set forth in subparagraphs (a) and (b) above, the Option may be exercised by the Optionee for a period of ninety
(90) days after such termination or until the expiry of the Option Period, whichever is earlier, to the extent of the outstanding portion of the Option which has vested but is unexercised on the date of such termination. 

  
 ARTICLE 14 
 NON-ASSIGNABILITY 
  
 Except as otherwise specifically provided herein, an Option granted to an Optionee shall not be transferred, sold, assigned, pledged or otherwise disposed of other than by will or by the laws of succession. Except as otherwise specifically
provided herein, an Option may only be exercised, during the lifetime of the Optionee. If the Optionee attempts to transfer, sell, assign, pledge or otherwise dispose of his Option, except as provided for in this Plan, the Administrator may
terminate the Option by notice to the Optionee, and such Option shall become null and void. 
  
 ARTICLE 15 
 RIGHT OF FIRST REFUSAL 
  

	(a)	If the Optionee intends to transfer, sell, pledge or otherwise dispose of any Shares which he receives pursuant to the exercise of an Option, the Company shall have a right of first
refusal to purchase (either itself or using a nominee) such Shares. Prior to such disposal, the Optionee shall first deliver to the Company a written notice (“Notice”) stating: (i) the Optionee’s intention to transfer such Shares;
(ii) the name of each proposed transferee; (iii) the number of Shares to be transferred (“Sale Shares”); and (iv) the cash price or other consideration for which the Optionee proposes to transfer the Sale Shares (“Offered
Price”), and the Optionee shall offer the Sale Shares at the Offered Price to the Company (or its nominee). 

  

	(b)	Within thirty (30) days after receipt of the Notice, the Company or its nominee may, by written notice to the Optionee, elect to purchase all, but not less than all, of the Sale
Shares at the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board of the Company in good faith. 

  

	(c)	 If the Company does not exercise its right of first refusal within the stipulated time, the Optionee shall be entitled to transfer such Sale Shares at a price not
lower than the Offered Price, provided that such transfer is consummated within sixty (60) days after the date of the Notice, and provided further that the Optionee has procured the proposed transferee to execute a written undertaking, in a form

  

 7 

	 	 
satisfactory to the Board, in favor of the Company to be bound by a restriction on the transfer of shares substantially similar to that set out in this
Article. 

  

	(d)	The Company’s right of first refusal under this Article shall cease to have effect immediately prior to the initial public offering of the Company’s Shares on any
internationally recognized stock exchange or similar trading system. 

  
 ARTICLE 16 
 AMENDMENT OR DISCONTINUANCE 
  
 The Plan may be amended or discontinued by the Board without the approval of the shareholders
of the Company. No amendment may adversely affect an outstanding Option without the consent of the Optionee. 
  
 ARTICLE 17 
 TERM 
  
 Unless sooner terminated by a resolution of the Board, the Plan will terminate on the tenth
(10th) anniversary of the Effective Date, but Options granted before the termination of the Plan will continue to be
effective in accordance with their terms and conditions. 
  
 ARTICLE 18 
 RECAPITALIZATION, MERGER AND CONSOLIDATION 
  

	(a)	The number of Shares available under the Plan, the number of Shares deliverable upon the exercise of Options granted under the Plan, and the exercise price per share payable upon
exercise of the Options, shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a subdivision, consolidation of shares, the payment of a share dividend or any other increase or decrease in the
number of issued shares, effected without receipt of consideration by the Company. No fractional shares shall be issued under the Plan and the Optionee shall receive from the Company cash in lieu of such fractional shares resulting from any such
adjustment. 

  

	(b)	 In the event of (i) a merger or consolidation of the Company with or into any other corporation (but excluding any transactions in which the shareholders of the
Company immediately prior to such transactions control, immediately after consummation of the transactions, more than fifty (50%) of the voting power of the surviving entity), or (ii) a sale of all or substantially all of the assets of the Company,
each outstanding Option shall be assumed or an equivalent option or right substituted by the successor corporation or a parent or subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute
the Options, the Option shall fully vest in the Optionee and the Optionee shall have the right to exercise the Option as to all of the Shares subject to the Option, including Shares which would not otherwise be vested or exercisable. If an Option
becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Administrator shall notify the Optionee in writing or electronically that the Option shall be fully exercisable for a period
of fifteen (15) days from the date of such notice, and the Option shall terminate upon the expiration of such period. For the purposes of this paragraph, the Option shall be considered assumed if, following the merger or sale of assets, the Option
confers the right to purchase or receive, 

  

 8 

	 	 
for each Share subject to the Option, the consideration (whether shares, cash, or other securities or property) received in the merger or sale of assets by
holders of Shares on the completion of the transaction. 

  

	(c)	The issue by the Company of shares of any class, or securities convertible into shares of any class, shall not affect, and no adjustment by reason thereof shall be made with respect
to, the number or price of Shares subject to Options granted under this Plan. 

  
 ARTICLE 19 
 LIQUIDATION OR DISSOLUTION 
  
 In the event of the proposed dissolution or liquidation of the Company, the Administrator
shall notify each Optionee as soon as practicable prior to the effective date of such proposed action. The Administrator in its discretion may provide for an Optionee’s Option to vest immediately and for the Optionee to have the right to
exercise his Option at any time until fifteen (15) days prior to the completion of such action as to all of the Shares covered under such Option. To the extent it has not been previously exercised, an Option will terminate immediately prior to the
consummation of such proposed action. 
  
 ARTICLE 20

 NO RIGHT TO CONTINUED EMPLOYMENT 
  
 Nothing in the Plan or the grant of any Option confers upon any employee the right to continue in the employ of the Company or its Subsidiaries or interferes with or
restricts in any way the right of the Company or its Subsidiaries to discharge any employee at any time (subject to any contract rights of such employee). 
  
 ARTICLE 21 
 INDEMNIFICATION OF BOARD
AND COMMITTEE 
  
 No member of the Board or the Committee, nor any officer or
employee of the Company acting on behalf of the Board or the Committee, shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board or the Committee
and each and any officer or employee of the Company acting on their behalf shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, determination or interpretation. This obligation shall
survive any termination of this Plan. 
  
 ARTICLE 22

 DISQUALIFYING DISPOSITION 
  
 If Shares acquired upon the exercise of an Incentive Share Option are disposed of by an Optionee prior to the expiration of either: (i) two (2) years from the Date of
Grant, or (ii) one (1) year from the transfer of shares to the Optionee pursuant to the exercise of such Option, or (iii) in any other disqualifying disposition within the meaning of Section 422 of the Code, such Optionee shall notify the Company in
writing as soon as practicable (and in any event not later than five (5) days) of the date and terms of such disposition. A disqualifying disposition by an Optionee shall not affect the status of any other Option granted under the Plan as an
Incentive Share Option. 
  

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 ARTICLE 23 
 TAX REQUIREMENTS 
  
 The Company shall have
the right to deduct from all amounts paid in cash any taxes required by any tax authority having competent jurisdiction over the Company to be withheld with respect to such cash payments. The employee receiving Shares issued upon exercise of any
Option shall be required to pay the Company the amount of any taxes which the Company is required to withhold with respect to such Shares. Such payments shall be made prior to the delivery of any certificate representing such Shares. Such payment
may be made in cash, by check, or by the company withholding a number of shares to be issued upon the exercise of the Option having an aggregate Fair Market Value equal to the required withholding payment, or any combination thereof. 
  
 ARTICLE 24 
 GOVERNING LAW. 
  
 This Plan shall be interpreted and construed in accordance with the laws of the State of New York. 
  

 10 

 IN WITNESS WHEREOF, the Company has caused this instrument to be executed as of the Effective Date pursuant to
prior action taken by the Board. 
  

			
	JOYO.COM LIMITED
		
	By:	 	 Lei Jun

	 Title:
	 	 Chairman of the Board of
 JOYO.COM limited

  

			
		
	Signature:	 	 /s/ Lei Jun

  

 11Cost Plus, Inc. 2004 Stock Plan

 EXHIBIT 4.4 
  

COST PLUS, INC. 
  
 2004 STOCK PLAN 
  
 1. Purposes of the Plan. The purposes of this Stock Plan are: 
  

	 	•	to attract and retain the best available personnel for positions of substantial responsibility, 

  

	 	•	to provide additional incentive to Service Providers, and 

  

	 	•	to promote the success of the Company’s business. 

  
 Awards granted under the Plan may be Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock, Stock Appreciation Rights, Performance Shares,
Performance Units or Deferred Stock Units, as determined by the Administrator at the time of grant. 
  
 2. Definitions. As used herein, the following definitions shall apply: 
  
 (a) “Administrator” means the Board or any of its Committees as shall be administering the
Plan, in accordance with Section 4 of the Plan. 
  
 (b) “Annual Revenue” means the Company’s or a business unit’s net sales for the Fiscal Year, determined in accordance with generally accepted accounting principles; provided, however, that prior to the Fiscal
Year, the Administrator shall determine whether any significant item(s) shall be excluded or included from the calculation of Annual Revenue with respect to one or more Participants. 
  
 (c) “Applicable Laws” means the legal requirements relating to the administration of equity
compensation plans under state corporate and securities laws and the Code. 
  
 (d) “Award” means, individually or collectively, a grant under the Plan of Options, Restricted Stock, Stock Appreciation Rights, Performance Shares, Performance Units or Deferred Stock Units.

  
 (e) “Award Agreement” means
the written agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan. 
  
 (f) “Awarded Stock” means the Common Stock subject to an Award. 
  
 (g) “Board” means the Board of Directors of
the Company. 
  
 (h) “Cash
Position” means the Company’s level of cash and cash equivalents. 
  

 (i) “Change of Control” means the occurrence of any of the following
events: 
  
 (i) The acquisition by any
“person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of the
“beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then
outstanding voting securities; 
  
 (ii) A change
in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean Directors who either (A) are Directors as of the date
hereof, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual not otherwise an
Incumbent Director whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); 
  
 (iii) A merger or consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least
fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; 
  
 (iv) The approval by the shareholders of the Company of a plan of complete liquidation of the Company;

  
 (v) The sale of all or substantially all of
the assets of the Company determined on a consolidated basis; or 
  
 (vi) The complete liquidation or dissolution of the Company. 
  
 (j) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (k) “Committee” means a Committee appointed
by the Board in accordance with Section 4 of the Plan. 
  
 (l) “Common Stock” means the Common Stock of the Company. 
  
 (m) “Company” means Cost Plus, Inc., a California corporation. 
  
 (n) “Consultant” means any person,
including an advisor, engaged by the Company or a Parent or Subsidiary to render services and who is compensated for such services. The term Consultant shall not include Directors who are compensated by the Company only for their service as
Directors. 
  

 -2- 

 (o) “Deferred Stock Unit” means a deferred stock unit Award granted to a
Participant pursuant to Section 13. 
  
 (p)
“Director” means a member of the Board. 
  
 (q) “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code. 
  
 (r) “Earnings Per Share” means as to any Fiscal Year, the Company’s or a business unit’s Net Income, divided by
a weighted average number of common shares outstanding and dilutive common equivalent shares deemed outstanding, determined in accordance with generally accepted accounting principles. 
  
 (s) “Employee” means any person, including Officers and Directors, employed by the Company
or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent,
any Subsidiary, or any successor. For purposes of Incentive Stock Options, no such leave may exceed ninety days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of
absence approved by the Company is not so guaranteed, then three (3) months following the 91st day of such leave any
Incentive Stock Option held by the Participant shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Non-statutory Stock Option. Neither service as a Director nor payment of a director’s fee by the
Company shall be sufficient to constitute “employment” by the Company. 
  
 (t) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (u) “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 of the National Association of Securities Dealers, Inc. Automated Quotation
(“NASDAQ”) System, the Fair Market Value of a Share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such system or exchange (or the exchange with the greatest
volume of trading in Common Stock) on the 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 quoted on the NASDAQ System (but not on the Nasdaq National Market thereof) or
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 last market trading
day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
  
 (iii) In the absence of an established market for the Common Stock, the Fair Market Value shall be determined in good faith by the
Administrator. 
  

 -3- 

 (v) “Fiscal Year” means a fiscal year of the Company. 
  
 (w) “Incentive Stock Option” means an
Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
  
 (x) “Net Income” means as to any Fiscal Year, the income after taxes of the Company for the Fiscal Year determined in
accordance with generally accepted accounting principles, provided that prior to the Fiscal Year, the Administrator shall determine whether any significant item(s) shall be included or excluded from the calculation of Net Income with respect to one
or more Participants. 
  
 (y)
“Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 
  
 (z) “Notice of Grant” means a written notice evidencing certain terms and conditions of an individual Award. The Notice
of Grant is part of the Option Agreement. 
  
 (aa) “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  
 (bb) “Operating Cash Flow” means the
Company’s or a business unit’s sum of Net Income plus depreciation and amortization less capital expenditures plus changes in working capital comprised of accounts receivable, inventories, other current assets, trade accounts payable,
accrued expenses, product warranty, advance payments from customers and long-term accrued expenses, determined in accordance with generally acceptable accounting principles. 
  
 (cc) “Operating Income” means the Company’s or a business unit’s income from
operations but excluding any unusual items, determined in accordance with generally accepted accounting principles. 
  
 (dd) “Option” means a stock option granted pursuant to the Plan. 
  
 (ee) “Option Agreement” means a written
agreement between the Company and a Participant evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 
  
 (ff) “Parent” means a “parent
corporation”, whether now or hereafter existing, as defined in Section 424(e) of the Code. 
  
 (gg) “Participant” means the holder of an outstanding Award granted under the Plan. 
  
 (hh) “Performance Goals” means the goal(s)
(or combined goal(s)) determined by the Administrator (in its discretion) to be applicable to a Participant with respect to an Award. As determined by the Administrator, the Performance Goals applicable to an Award may provide for a targeted level
or levels of achievement using one or more of the following measures: (a) Annual 

  

 -4- 

 
Revenue, (b) Cash Position, (c) Earnings Per Share, (d) Net Income, (e) Operating Cash Flow, (f) Operating Income, (g) Return on Assets, (h) Return on
Equity, (i) Return on Sales, and (j) Total Shareholder Return. The Performance Goals may differ from Participant to Participant and from Award to Award. 
  
 (ii) “Performance Share” means a performance share Award granted to a Participant pursuant to Section 11. 
  
 (jj) “Performance Unit” means a performance
unit Award granted to a Participant pursuant to Section 12. 
  
 (kk) “Per Share Strike Price” means, with respect to each Option or SAR, the per share exercise price. 
  
 (ll) “Plan” means this 2004 Stock Plan. 
  
 (mm) “Restricted Stock” means Shares granted pursuant to Section 10 of the Plan.

  
 (nn) “Retirement” means a
Participant’s voluntary retirement at or after age 65 (or, with the consent of the Plan Administrator, in its sole discretion, age 55). 
  
 (oo) “Return on Assets” means the percentage equal to the Company’s or a business unit’s Operating Income
before incentive compensation, divided by average net Company or business unit, as applicable, assets, determined in accordance with generally accepted accounting principles. 
  
 (pp) “Return on Equity” means the percentage equal to the Company’s Net Income divided
by average shareholder’s equity, determined in accordance with generally accepted accounting principles. 
  
 (qq) “Return on Sales” means the percentage equal to the Company’s or a business unit’s Operating Income before
incentive compensation, divided by the Company’s or the business unit’s, as applicable, revenue, determined in accordance with generally accepted accounting principles. 
  
 (rr) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as
in effect when discretion is being exercised with respect to the Plan. 
  
 (ss) “Section 16(b)” means Section 16(b) of the Securities Exchange Act of 1934, as amended. 
  
 (tt) “Service Provider” means an Employee or Consultant. 
  
 (uu) “Share” means a share of the Common Stock, as adjusted in accordance with Section 16
of the Plan. 
  

 -5- 

 (vv) “Stock Appreciation Right” or “SAR” means an Award
granted pursuant to Section 9 hereof. 
  
 (ww)
“Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  
 (xx) “Total Shareholder Return” means the total return (change in share price plus reinvestment of any dividends) of a
Share. 
  
 3. Stock Subject to the Plan. Subject to the
provisions of Section 16 of the Plan, the maximum aggregate number of Shares which may be issued under the Plan is 900,000 Shares plus any Shares remaining available for issuance pursuant to the Company’s 1995 Stock Plan as of the date upon
which this Plan is approved, up to a maximum of 100,000 Shares, plus any shares subject to any outstanding options under the Company’s 1995 Stock Option Plan that subsequently expire unexercised, up to a maximum of an additional 800,000 Shares;
provided, however, that in no event shall more than 30% of the Stock remaining issuable under the Plan as of the date of obtaining shareholder approval in 2004 and 30% of the Shares subsequently added to the Plan by virtue of outstanding 1995 Stock
Option Plan options expiring unexercised be issued pursuant to Awards with an exercise price or purchase price that is less than 100% of Fair Market Value on the date of grant. The Shares may be authorized, but unissued, or reacquired Common Stock.

  
 If an Award expires or becomes unexercisable without having
been exercised in full, or, with respect to Restricted Stock, Performance Shares, Performance Units or Deferred Stock Units, is forfeited to or repurchased by the Company, the unpurchased Shares (or for Awards other than Options and SARs, the
forfeited or repurchased shares) which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated). With respect to SARs, only shares actually issued pursuant to an SAR shall cease to be
available under the Plan; all remaining shares under SARs shall remain available for future grant or sale under the Plan (unless the Plan has terminated). However, Shares that have actually been issued under the Plan under any Award shall not be
returned to the Plan and shall not become available for future distribution under the Plan; provided, however, that if Shares of Restricted Stock, Performance Shares, Performance Units or Deferred Stock Units are repurchased by the Company at their
original purchase price or are forfeited to the Company, such Shares shall become available for future grant under the Plan. To the extent an Award under the Plan is paid out in cash rather than stock, such cash payment shall not result in reducing
the number of Shares available for issuance under the Plan. 
  
 4.
Administration of the Plan. 
  
 (a)
Procedure. 
  
 (i) Multiple
Administrative Bodies. The Plan may be administered by different Committees with respect to different groups of Service Providers. 
  
 (ii) Section 162(m). To the extent that the Administrator determines it to be desirable to qualify Options granted hereunder as
“performance-based compensation” within the 

  

 -6- 

 
meaning of Section 162(m) of the Code, the Plan shall be administered by a Committee of two or more “outside directors” within the meaning of
Section 162(m) of the Code. 
  
 (iii) Rule
16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder shall be structured to satisfy the requirements for exemption under Rule 16b-3. 
  
 (iv) Other Administration. Other than as provided
above, the Plan shall be administered by (A) the Board or (B) a Committee, which committee shall be constituted to satisfy Applicable Laws. 
  
 (b) Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific
duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion: 
  
 (i) to determine the Fair Market Value of the Common Stock, in accordance with Section 2(u) of the Plan; 
  
 (ii) to select the Service Providers to whom Awards may be
granted hereunder; 
  
 (iii) to determine whether
and to what extent Awards or any combination thereof, are granted hereunder; 
  
 (iv) to determine the number of shares of Common Stock to be covered by each Award granted hereunder; 
  
 (v) to approve forms of agreement for use under the Plan; 
  
 (vi) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any award
granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options or SARs may be exercised or other Awards vest (which may be based on performance criteria), any vesting acceleration or
waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 
  
 (vii) to construe and interpret the terms of the Plan and
Awards; 
  
 (viii) to prescribe, amend and
rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws; 
  
 (ix) to modify or amend each Award (subject to Section 18(c)
of the Plan), including the discretionary authority to extend the post-termination exercisability period of Options and SARs longer than is otherwise provided for in the Plan; 
  

 -7- 

 (x) to authorize any person to execute on behalf of the Company any instrument required
to effect the grant of an Option or Stock Appreciation previously granted by the Administrator; 
  
 (xi) to allow Participants to satisfy withholding tax obligations by electing to have the Company withhold from the Shares or cash to be
issued upon exercise or vesting of an Award (or distribution of a Deferred Stock Unit) that number of Shares or cash having a Fair Market Value equal to the minimum amount required to be withheld. The Fair Market Value of any Shares to be withheld
shall be determined on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares or cash withheld for this purpose shall be made in such form and under such conditions as the Administrator may
deem necessary or advisable; 
  
 (xii) to
determine the terms and restrictions applicable to Awards; and 
  
 (xiii) to make all other determinations deemed necessary or advisable for administering the Plan. 
  
 (c) Effect of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations shall be final
and binding on all Participants and any other holders of Awards. 
  
 5. Eligibility. Restricted Stock, Performance Shares, Performance Units, Stock Appreciation Rights, Deferred Stock Units and Nonstatutory Stock Options may be granted to Service Providers. Incentive Stock Options may be granted only
to Employees. 
  
 6. Limitations. 
  
 (a) Each Option shall be designated in the Notice of Grant
as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designations, to the extent that the aggregate Fair Market Value: 
  
 (i) of Shares subject to a Participant’s Incentive Stock Options granted by the Company, any Parent or
Subsidiary, which 
  
 (ii) become exercisable for
the first time during any calendar year (under all plans of the Company or any Parent or Subsidiary) 
  
 exceeds $100,000, such excess Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock Options shall be taken into account in the order in which they were granted, and
the Fair Market Value of the Shares shall be determined as of the time of grant. 
  
 (b) Neither the Plan nor any Award shall confer upon a Participant any right with respect to continuing the Participant’s employment
with the Company or its Subsidiaries, nor shall they interfere in any way with the Participant’s right or the Company’s or Subsidiary’s right, as the case may be, to terminate such employment at any time, with or without cause or
notice. 
  

 -8- 

 (c) The following limitations shall apply to grants of Options and Stock Appreciation
Rights to Employees: 
  
 (i) No Employee shall be
granted, in any fiscal year of the Company, Options and Stock Appreciation Rights to purchase more than 300,000 Shares. 
  
 (ii) The foregoing limitations shall be adjusted proportionately in connection with any change in the Company’s capitalization as
described in Section 16. 
  
 7. Term of Plan. The Plan
shall continue in effect for a term of ten (10) years following the date upon which the Board approved the Plan in 2004. 
  
 8. Stock Options. 
  
 (a) Term . The term of each Option shall be stated in the Notice of Grant; provided, however, that the term shall be ten (10) years
from the date of grant or such shorter term as may be provided in the Notice of Grant. Moreover, in the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns stock representing more
than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the date of grant or such shorter term as may be provided in the
Notice of Grant. 
  
 (b) Option Exercise Price
and Consideration. 
  
 (i) Exercise
Price. The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by the Administrator, subject to the following: 
  
 (A) In the case of an Incentive Stock Option 
  
 a) granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing
more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant. 
  
 b) granted to any Employee other than an Employee described
in paragraph a) immediately above, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant. 
  
 (B) In the case of a Nonstatutory Stock Option, the per Share exercise price shall be no less than 25% of the Fair Market Value per share
on the date of grant. In the case of a Nonstatutory Stock Option intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code, the per Share exercise price shall be no less than 100% of the Fair
Market Value per Share on the date of grant. 
  
 (C) Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of grant pursuant to a merger or other corporate transaction. 
  

 -9- 

 (D) The exercise price for an Option may not be reduced without the consent of the
Company’s shareholders. This shall include, without limitation, a repricing of the Option as well as an Option exchange program whereby the Participant agrees to cancel an existing Option in exchange for an Option, SAR or other Award.

  
 (c) Waiting Period and Exercise Dates.
At the time an Option is granted, the Administrator shall fix the period within which the Option may be exercised and shall determine any conditions which must be satisfied before the Option may be exercised. In so doing, the Administrator may
specify that an Option may not be exercised until the completion of a service period. 
  
 (d) Form of Consideration. The Administrator shall determine the acceptable form of consideration for exercising an Option,
including the method of payment. In the case of an Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at the time of grant. Subject to Applicable Laws, such consideration may consist entirely of:

  
 (i) cash; 
  
 (ii) check; 
  
 (iii) other Shares which (A) in the case of Shares acquired
upon exercise of an option, have been owned by the Participant for more than six months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option
shall be exercised; 
  
 (iv) delivery of a
properly executed exercise notice together with such other documentation as the Administrator 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; 
  
 (v) any combination of
the foregoing methods of payment; or 
  
 (vi)
such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws. 
  
 (e) Exercise of Option. 
  
 (i) Procedure for Exercise; Rights as a Shareholder. Any Option granted hereunder shall be exercisable according to the terms of
the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement. 
  
 An Option may not be exercised for a fraction of a Share. 
  
 An Option shall be deemed exercised when the Company receives: (i) written notice of exercise (in accordance with the Option Agreement) from the person
entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted 

  

 -10- 

 
by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Participant or, if requested by the
Participant, in the name of the Participant and his or her spouse. Until the stock certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company), 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. The Company shall issue (or cause to be issued) such stock certificate
promptly after the Option is exercised. No adjustment will 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 16 of the Plan. 
  
 Exercising an Option in any manner shall decrease the number
of Shares thereafter 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. 
  
 (f) Termination of Relationship as a Service Provider. If a Participant ceases to be a Service Provider, other than upon the
Participant’s death, Disability or Retirement, the Participant may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent that the Option is vested on the date of termination (but in no event
later than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for thirty (30) days following the Participant’s
termination. If, on the date of termination, the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Participant does not exercise
his or her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  

(g) Disability or Retirement of Participant. If a Participant ceases to be a Service Provider as a result of the
Participant’s Disability or pursuant to his or her Retirement, the Participant may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent the Option is vested on the date of termination (but
in no event later than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following the
Participant’s termination. If, on the date of termination, the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Participant
does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 (h) Death of Participant. If a Participant dies while a Service Provider, the Option may be exercised
following the Participant’s death within such period of time as is specified in the Option Agreement (but in no event may the option be exercised later than the expiration of the term of such Option as set forth in the Option Agreement), by the
Participant’s designated beneficiary, provided such beneficiary has been designated prior to Participant’s death in a form acceptable to the Administrator. If no such beneficiary has been designated by the Participant, then such Option may
be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent 

  

 -11- 

 
and distribution. In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following
Participant’s death. If the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 9. Stock Appreciation Rights. 
  
 (a) Grant of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to
Participants at any time and from time to time as shall be determined by the Administrator, in its sole discretion. The Administrator shall have complete discretion to determine the number of SARs granted to any Participant. 
  
 (b) Exercise Price and other Terms. Subject to
Section 6(c) of the Plan, the Administrator, subject to the provisions of the Plan, shall have complete discretion to determine the terms and conditions of SARs granted under the Plan; provided, however, that no SAR may have a term of more than ten
(10) years from the date of grant. The exercise price for the Shares or cash to be issued pursuant to an already granted SAR may not be changed without the consent of the Company’s shareholders. This shall include, without limitation, a
repricing of the SAR as well as an SAR exchange program whereby the Participant agrees to cancel an existing SAR in exchange for an Option, SAR or other Award. 
  

(c) Payment of SAR Amount. Upon exercise of a SAR, a Participant shall be entitled to receive payment from the Company in an
amount determined by multiplying: 
  
 (i) The
difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times 
  
 (ii) the number of Shares with respect to which the SAR is exercised. 
  
 (d) Payment upon Exercise of SAR. At the discretion of the Administrator, payment for a SAR may be in
cash, Shares or a combination thereof. 
  
 (e)
SAR Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall specify the exercise price, the term of the SAR, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion,
shall determine. 
  
 (f) Expiration of
SARs. A SAR granted under the Plan shall expire upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement. 
  
 (g) Termination of Relationship as a Service Provider. If a Participant ceases to be a Service
Provider, other than upon the Participant’s death, Disability or Retirement termination, the Participant may exercise his or her SAR within such period of time as is specified in the SAR Agreement to the extent that the SAR is vested on the
date of termination (but in no event later than the expiration of the term of such SAR as set forth in the SAR Agreement). In the absence of a specified time in the SAR Agreement, the SAR shall remain exercisable for thirty (30) days following the
Participant’s termination. If, on the date of termination, the Participant is not vested as to his or her entire SAR, the Shares covered by the unvested portion of the SAR shall revert to the 

  

 -12- 

 
Plan. If, after termination, the Participant does not exercise his or her SAR within the time specified by the Administrator, the SAR shall terminate, and
the Shares covered by such SAR shall revert to the Plan. 
  
 (h) Disability or Retirement of Participant. If a Participant ceases to be a Service Provider as a result of the Participant’s Disability or his or her Retirement, the Participant may exercise his or her
SAR within such period of time as is specified in the SAR Agreement to the extent the SAR is vested on the date of termination (but in no event later than the expiration of the term of such SAR as set forth in the SAR Agreement). In the absence of a
specified time in the SAR Agreement, the SAR shall remain exercisable for twelve (12) months following the Participant’s termination. If, on the date of termination, the Participant is not vested as to his or her entire SAR, the Shares covered
by the unvested portion of the SAR shall revert to the Plan. If, after termination, the Participant does not exercise his or her SAR within the time specified herein, the SAR shall terminate, and the Shares covered by such SAR shall revert to the
Plan. 
  
 (i) Death of Participant. If a
Participant dies while a Service Provider, the SAR may be exercised following the Participant’s death within such period of time as is specified in the SAR Agreement (but in no event may the SAR be exercised later than the expiration of the
term of such SAR as set forth in the SAR Agreement), by the Participant’s designated beneficiary, provided such beneficiary has been designated prior to Participant’s death in a form acceptable to the Administrator. If no such beneficiary
has been designated by the Participant, then such SAR may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the SAR is transferred pursuant to the Participant’s will or in accordance with
the laws of descent and distribution. In the absence of a specified time in the SAR Agreement, the SAR shall remain exercisable for twelve (12) months following Participant’s death. If the SAR is not so exercised within the time specified
herein, the SAR shall terminate, and the Shares covered by such SAR shall revert to the Plan. 
  
 10. Restricted Stock. 
  
 (a) Grant of Restricted Stock. Subject to the terms and conditions of the Plan, Restricted Stock may be granted to Participants at any time as shall be determined by the Administrator, in its sole discretion.
The Administrator shall have complete discretion to determine (i) the number of Shares subject to a Restricted Stock award granted to any Participant (provided that during any fiscal year of the Company, no Participant shall be granted more than
200,000 Shares of Restricted Stock), and (ii) the conditions that must be satisfied, which typically will be based principally or solely on continued provision of services but may include a performance-based component, upon which is conditioned the
grant or vesting of Restricted Stock. Restricted Stock shall be granted in the form of units to acquire Shares. Each such unit shall be the equivalent of one Share for purposes of determining the number of Shares subject to an Award. Until the
Shares are issued, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the units to acquire Shares. 
  
 (b) Other Terms. The Administrator, subject to the provisions of the Plan, shall have complete discretion to determine the terms
and conditions of Restricted Stock granted under the Plan. Restricted Stock grants shall be subject to the terms, conditions, and restrictions determined by 

  

 -13- 

 
the Administrator at the time the stock is awarded. The Administrator may require the recipient to sign a Restricted Stock Award agreement as a condition of
the award. Any certificates representing the Shares of stock awarded shall bear such legends as shall be determined by the Administrator. 
  
 (c) Restricted Stock Award Agreement. Each Restricted Stock grant shall be evidenced by an agreement that shall specify the
purchase price (if any) and such other terms and conditions as the Administrator, in its sole discretion, shall determine; provided; however, that if the Restricted Stock grant has a purchase price, such purchase price must be paid no more than ten
(10) years following the date of grant. 
  
 (d)
Section 162(m) Performance Restrictions. For purposes of qualifying grants of Restricted Stock as “performance-based compensation” under Section 162(m) of the Code, the Administrator, in its discretion, may set restrictions based
upon the achievement of Performance Goals. The Performance Goals shall be set by the Administrator on or before the latest date permissible to enable the Restricted Stock to qualify as “performance-based compensation” under Section 162(m)
of the Code. In granting Restricted Stock which is intended to qualify under Section 162(m) of the Code, the Administrator shall follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the
Restricted Stock under Section 162(m) of the Code (e.g., in determining the Performance Goals). 
  
 11. Performance Shares. 
  
 (a) Grant of Performance Shares. Subject to the terms and conditions of the Plan, Performance Shares may be granted to Participants
at any time as shall be determined by the Administrator, in its sole discretion. The Administrator shall have complete discretion to determine (i) the number of Shares subject to a Performance Share award granted to any Participant (provided that
during any fiscal year of the Company, no Participant shall be granted more than 200,000 units of Performance Shares), and (ii) the conditions that must be satisfied, which typically will be based principally or solely on achievement of performance
milestones but may include a service-based component, upon which is conditioned the grant or vesting of Performance Shares. Performance Shares shall be granted in the form of units to acquire Shares. Each such unit shall be the equivalent of one
Share for purposes of determining the number of Shares subject to an Award. Until the Shares are issued, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the units to acquire Shares. 

 
 (b) Other Terms. The Administrator, subject to the
provisions of the Plan, shall have complete discretion to determine the terms and conditions of Performance Shares granted under the Plan. Performance Share grants shall be subject to the terms, conditions, and restrictions determined by the
Administrator at the time the stock is awarded, which may include such performance-based milestones as are determined appropriate by the Administrator. The Administrator may require the recipient to sign a Performance Shares agreement as a condition
of the award. Any certificates representing the Shares of stock awarded shall bear such legends as shall be determined by the Administrator. 
  

 -14- 

 (c) Performance Share Award Agreement. Each Performance Share grant shall be
evidenced by an agreement that shall specify such other terms and conditions as the Administrator, in its sole discretion, shall determine. 
  
 (d) Section 162(m) Performance Restrictions. For purposes of qualifying grants of Performance Shares as “performance-based
compensation” under Section 162(m) of the Code, the Administrator, in its discretion, may set restrictions based upon the achievement of Performance Goals. The Performance Goals shall be set by the Administrator on or before the latest date
permissible to enable the Performance Shares to qualify as “performance-based compensation” under Section 162(m) of the Code. In granting Performance Shares which are intended to qualify under Section 162(m) of the Code, the Administrator
shall follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Performance Shares under Section 162(m) of the Code (e.g., in determining the Performance Goals). 
  
 12. Performance Units. 
  
 (a) Grant of Performance Units. Performance Units are
similar to Performance Shares, except that they shall be settled in a cash equivalent to the Fair Market Value of the underlying Shares, determined as of the vesting date. Subject to the terms and conditions of the Plan, Performance Units may be
granted to Participants at any time and from time to time as shall be determined by the Administrator, in its sole discretion. The Administrator shall have complete discretion to determine the conditions that must be satisfied, which typically will
be based principally or solely on achievement of performance milestones but may include a service-based component, upon which is conditioned the grant or vesting of Performance Units. Performance Units shall be granted in the form of units to
acquire Shares. Each such unit shall be the cash equivalent of one Share of Common Stock. No right to vote or receive dividends or any other rights as a shareholder shall exist with respect to Performance Units or the cash payable thereunder.

  
 (b) Number of Performance
Units. The Administrator will have complete discretion in determining the number of Performance Units granted to any Participant, provided that during any fiscal year of the Company, no Participant shall receive Performance Units having an
initial value greater than $1,000,000, except that such Participant may receive Performance Units in a fiscal year of the Company in which his or her service as a Participant first commences with an initial value no greater than $2,000,000.

  
 (c) Other Terms. The Administrator,
subject to the provisions of the Plan, shall have complete discretion to determine the terms and conditions of Performance Units granted under the Plan. Performance Unit grants shall be subject to the terms, conditions, and restrictions determined
by the Administrator at the time the stock is awarded, which may include such performance-based milestones as are determined appropriate by the Administrator. The Administrator may require the recipient to sign a Performance Unit agreement as a
condition of the award. Any certificates representing the Shares awarded shall bear such legends as shall be determined by the Administrator. 
  

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 (d) Performance Unit Award Agreement. Each Performance Unit grant shall be
evidenced by an agreement that shall specify such terms and conditions as the Administrator, in its sole discretion, shall determine. 
  
 (e) Section 162(m) Performance Restrictions. For purposes of qualifying grants of Performance Units as “performance-based
compensation” under Section 162(m) of the Code, the Administrator, in its discretion, may set restrictions based upon the achievement of Performance Goals. The Performance Goals shall be set by the Administrator on or before the latest date
permissible to enable the Performance Units to qualify as “performance-based compensation” under Section 162(m) of the Code. In granting Performance Units which are intended to qualify under Section 162(m) of the Code, the Administrator
shall follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Performance Units under Section 162(m) of the Code (e.g., in determining the Performance Goals). 
  
 13. Deferred Stock Units. 
  
 (a) Description. Deferred Stock Units shall consist
of a Restricted Stock, Performance Share or Performance Unit Award that the Administrator, in its sole discretion permits to be paid out in installments or on a deferred basis, in accordance with rules and procedures established by the
Administrator. Deferred Stock Units shall remain subject to the claims of the Company’s general creditors until distributed to the Participant. 
  
 (b) 162(m) Limits. Deferred Stock Units shall be subject to the annual 162(m) limits applicable to the underlying Restricted Stock,
Performance Share or Performance Unit Award. 
  
 14. Death of
Participant. In the event that a Participant dies while a Service Provider, then 100% of his or her Awards shall immediately vest. 
  
 15. Non-Transferability of Awards. Unless determined otherwise by the Administrator, an Award 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 recipient, only by the recipient. If the Administrator makes an Award transferable, such Award
shall contain such additional terms and conditions as the Administrator deems appropriate. 
  
 16. Adjustments Upon Changes in Capitalization or Change of Control. 
  
 (a) Changes in Capitalization. Subject to any required action by the shareholders of the Company, the number of shares of Common
Stock covered by each outstanding Award, the number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan upon cancellation or
expiration of an Award, as well as the price per share of Common Stock covered by each such outstanding Award and the 162(m) fiscal year share issuance limits under Sections 6(c), 10(a) and 11(a) shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock 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 

  

 -16- 

 
number of issued shares of Common Stock 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.” Such adjustment shall be made by the Compensation Committee, whose determination in that respect shall be final, binding and
conclusive. 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 of Common Stock subject to an Award. 
  
 (b) Change of Control. 
  
 (i) Stock Options and SARs. In the event of a Change of Control, each outstanding Option and SAR shall become fully (100%) vested and exercisable. In addition, at the election of the Company the following shall
occur: 
  
 (A) each Option and SAR shall be
deemed to have been exercised to the extent it had not been exercised prior to that date, (ii) the Shares issuable in connection with the deemed exercise of each Option and SAR shall be issued to and in the name of the acquiror of the Company, if
any, and (iii) in respect of each Share issued in connection with the deemed exercise of an Option or SAR, the Participant shall receive a per Share payment equal to the number (or amount) and kind of stock, securities, cash, property or other
consideration that each holder of a Share was entitled to receive in connection with the Change of Control, reduced by the Per Share Strike Price, or 
  
 (B) immediately after each outstanding Option and SAR has become fully (100%) vested it shall be terminated in exchange for a per share
payment for each Share then subject to such Option or SAR equal to the number (or amount) and kind of stock, securities, cash, property or other consideration that each holder of a Share was entitled to receive in connection with the Change of
Control, reduced by the Per Share Strike Price, or 
  
 (C) in the event of a Change of Control that is consummated pursuant to a merger, consolidation or reorganization (a “Transaction”), each outstanding Option and SAR shall become fully (100%) vested and exercisable, and the Plan
and the outstanding Options and SARs shall continue in effect in accordance with their respective terms and each Participant shall be entitled to receive in respect of each Share subject to any outstanding Option, upon exercise of such Option, the
same number (or amount) and kind of stock, securities, cash, property or other consideration that each holder of a Share was entitled to receive in connection with the Transaction in respect of a Share. 
  
 (ii) Restricted Stock, Performance Shares, Performance
Units and Deferred Stock Units. In the event of a Change of Control, each outstanding award of Restricted Stock, Performance Shares, Performance Units and Deferred Stock Units shall become fully (100%) vested. In addition, at the election of the
Company, immediately after each outstanding award of Restricted Stock, Performance Shares, Performance Units and Deferred Stock Units have become fully (100%) vested, they shall be terminated and cancelled in exchange for a per share payment for
each Share (or, for Performance Units, unit) then subject to such each outstanding award of 

  

 -17- 

 
Restricted Stock, Performance Shares, Performance Units and Deferred Stock Units equal to the number (or amount) and kind of stock, securities, cash,
property or other consideration that each holder of a Share was entitled to receive in connection with the Change of Control. The Company may also elect to have vested Deferred Stock Units be assumed by the acquirer for distribution according to
their existing distribution schedule. 
  
 17. Date of
Grant. The date of grant of an Award shall be, for all purposes, the date on which the Administrator makes the determination granting such Award, or such other later date as is determined by the Administrator. Notice of the determination shall
be provided to each Participant within a reasonable time after the date of such grant. 
  
 18. Amendment and Termination of the Plan. 
  
 (a) Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan. 
  
 (b) Shareholder Approval. The Company shall obtain
shareholder approval of any Plan amendment to the extent necessary and desirable to comply Section 422 of the Code (or any successor rule or statute or other applicable law, rule or regulation, including the requirements of any exchange or quotation
system on which the Common Stock is listed or quoted). Such shareholder approval, if required, shall be obtained in such a manner and to such a degree as is required by the applicable law, rule or regulation. 
  
 (c) Effect of Amendment or Termination. No amendment,
alteration, suspension or termination of the Plan shall impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the
Company. 
  
 19. Conditions Upon Issuance of Shares.

  
 (a) Legal Compliance. Shares shall not
be issued pursuant to the exercise of an Award unless the exercise of the Award or the issuance and delivery of such Shares (or with respect to Performance Units, the cash equivalent thereof) shall comply with Applicable Laws and shall be further
subject to the approval of counsel for the Company with respect to such compliance. 
  
 (b) Investment Representations. As a condition to the exercise or receipt of an Award, the Company may require the person
exercising or receiving such Award to represent and warrant at the time of any such exercise or receipt 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. 
  

 -18- 

 20. Liability of Company. 
  
 (a) Inability to Obtain Authority. The 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. 
  
 (b) Grants Exceeding Allotted Shares. If the Awarded Stock covered by an Award exceeds, as of the date of grant, the number of
Shares which may be issued under the Plan without additional shareholder approval, such Award shall be void with respect to such excess Awarded Stock, unless shareholder approval of an amendment sufficiently increasing the number of Shares subject
to the Plan is timely obtained in accordance with Section 18(b) of the Plan. 
  
 21. 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.

  

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