Document:

Exhibit 10.11

 

Execution Version

 

STRIPES US HOLDING, INC.

2019 OMNIBUS INCENTIVE PLAN

 

STOCK OPTION AGREEMENT

 

GRANT NOTICE

 

Stripes US
Holding, Inc. (the “Company”), pursuant to its 2019 Omnibus Incentive Plan, as amended from time to
time (the “Plan”), hereby grants to the participant set forth below
(“Participant”), a Nonqualified Stock Option to purchase the number of shares of the Company’s
Common Stock (referred to herein as “Shares”) set forth below. This Nonqualified Stock Option is subject
to all of the terms and conditions as set forth herein and in the Stock Option Agreement attached hereto as Exhibit A
(the “Stock Option Agreement”) and the Plan, each of which is incorporated herein by reference. Unless
otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Stock Option Grant Notice and
the Stock Option Agreement.

 

	Participant:	
	 
	Grant Date:	
	 
	Exercise Price per Share:	
	 
	Total Exercise Price:	
	 
	Total Number of Shares Subject to Nonqualified Stock Option:	
	 
	Expiration Date:1	

 

	Type
    of Option:	 ̈  Incentive
Stock Option	 ̈     Nonqualified
    Stock Option

 

	Vesting Schedule:	The Nonqualified Stock Option shall be fully vested and exercisable on the Grant
    Date.

 

By his or her signature and
the Company’s signature below, Participant agrees to be bound by the terms and conditions of the Plan, the Stock Option Agreement
and this Grant Notice. Participant has reviewed the Stock Option Agreement, the Plan and this Grant Notice in their entirety, has had
an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of this Grant
Notice, the Stock Option Agreement and the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Committee upon any questions arising under the Plan or the Nonqualified Stock Option.

 

	STRIPES US HOLDING, INC.:	 	 PARTICIPANT:
	 	 	 
	
	By:	                        	 	By:	                    
	Name:	 	 	Name:	 
	Title:	 	 	 
	
	 	 	

 

 

1. To be tenth anniversary of the Grant Date.

 

     

     

    

 

EXHIBIT A

 

TO STOCK OPTION AGREEMENT

 

Pursuant to the Stock Option
Grant Notice (“Grant Notice”) to which this Stock Option Agreement (this “Agreement”)
is attached, Stripes US Holding, Inc. (the “Company”) has granted to Participant a Nonqualified Stock Option
under the Company’s 2019 Omnibus Incentive Plan, as amended from time to time (the “Plan”), to purchase
the number of Shares indicated in the Grant Notice.

 

ARTICLE I

 

GENERAL

 

1.1       Defined Terms.
Capitalized terms not specifically defined herein shall have the meanings specified in the Plan and the Grant Notice.

 

1.2      Incorporation
of Terms of Plan. The Nonqualified Stock Option is subject to the terms and conditions of the Plan which are incorporated herein by
reference. In the event of a conflict between the terms of the Agreement and the Plan, the terms of the Plan shall control.

 

1.3      Grant
of Nonqualified Stock Option. In consideration of Participant’s past and/or continued service to the Company or a parent or
subsidiary and for other good and valuable consideration, effective as of the grant date set forth in the Grant Notice (the “Grant
Date”), the Company irrevocably grants to Participant a Nonqualified Stock Option to purchase any part or all of an aggregate
of the number of Shares set forth in the Grant Notice, upon the terms and conditions set forth in the Plan and this Agreement.

 

1.4      Treatment
on Sale of the Company. Unless otherwise determined by the Committee in its sole discretion, in the event of a Sale of the Company,
the Nonqualified Stock Option shall be surrendered to the Company by Participant and/or be immediately cancelled by the Company, and Participant
will be entitled to receive a cash payment in an amount, if any, equal to the aggregate number of Shares then subject to the portion of
the surrendered Nonqualified Stock Option multiplied by the excess, if any, of the Fair Market Value of a Share as of the date of the
Sale of the Company, over the Exercise Price per Share, on such terms and subject to such conditions as the Committee deems appropriate.
For the avoidance of doubt, if the Fair Market Value of a Share is less than the Exercise Price Per Share, the Nonqualified Stock Option
may be cancelled without payment.

 

ARTICLE II

 

PERIOD OF EXERCISABILITY

 

2.1      Vesting;
Commencement of Exercisability. The Nonqualified Stock Option is vested and exercisable on the Grant Date.

 

2.2      Duration
of Exercisability. The Nonqualified Stock Option shall remain vested and exercisable until it becomes unexercisable under Section 2.3
or pursuant to the terms of the Plan. Once the Nonqualified Stock Option becomes unexercisable, it shall be forfeited immediately.

 

    A-1

     

    

 

2.3         Expiration
of Option. The Option may not be exercised to any extent by anyone after the first to occur of the following events:

 

		(a)	The Expiration Date set forth in the Grant Notice;

 

		(b)	The expiration of one year following the consummation of an initial Public Offering; and

 

(c)           
Unless otherwise determined by the Committee, immediately prior to a Sale of the Company in accordance with Section 1.4.

 

ARTICLE III

 

EXERCISE OF OPTION

 

3.1       Person
Eligible to Exercise. During the lifetime of Participant, only Participant may exercise the Nonqualified Stock Option or any portion
thereof. After the death of Participant, any exercisable portion of the Nonqualified Stock Option may, prior to the time when the Nonqualified
Stock Option becomes unexercisable under Section 2.3, be exercised by Participant’s personal representative or by any person
empowered to do so under the deceased Participant’s will or under the then applicable laws of descent and distribution.

 

3.2       Partial
Exercise. Any exercisable portion of the Nonqualified Stock Option or the entire Nonqualified Stock Option, if then wholly exercisable,
may be exercised in whole or in part at any time prior to the time when the Nonqualified Stock Option or portion thereof becomes unexercisable
under Section 2.3.

 

3.3       Manner
of Exercise. The Nonqualified Stock Option, or any exercisable portion thereof, may be exercised solely by delivery to the Secretary
of the Company or the Secretary’s office, or such other place as may be determined by the Committee, of all of the following prior
to the time when the Nonqualified Stock Option or such portion thereof becomes unexercisable under Section 2.3:

 

 (a)         An exercise notice
in substantially in the form attached as Exhibit B to the Grant Notice (or such other form as is prescribed by the Committee)
(the “Exercise Notice”) in writing signed by Participant or any other person then entitled to exercise the Nonqualified
Stock Option or portion thereof, stating that the Nonqualified Stock Option or portion thereof is thereby exercised, such notice complying
with all applicable rules established by the Committee; and

 

 (b)         Full payment for the
Shares with respect to which the Nonqualified Stock Option or portion thereof is exercised in accordance with Section 2.1(c) of
the Plan; and

 

 (c)         In the event the Nonqualified
Stock Option or portion thereof shall be exercised pursuant to Section 3.1 by any person or persons other than Participant, appropriate
proof of the right of such person or persons to exercise the Nonqualified Stock Option.

 

ARTICLE IV

 

OTHER PROVISIONS

 

4.1            Restrictive
Legends and Stop-Transfer Orders.

 

 (a)         Participant agrees
that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer”
instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to
the same effect in its own records.

 

    A-2

     

    

 

 (b)         The Company shall not
be required: (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions
of this Agreement, or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other
transferee to whom such shares shall have been so transferred.

 

4.2           Notices.
Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company at its principal executive
offices in care of the Secretary of the Company, and any notice to be given to Participant shall be addressed to Participant at the most
recent address for Participant shown in the Company’s records. By a notice given pursuant to this Section 4.2, either party
may hereafter designate a different address for notices to be given to that party. Any notice which is required to be given to Participant
shall, if Participant is then deceased, be given to the person entitled to exercise his or her Nonqualified Stock Option by written notice
under this Section 4.2. Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt
requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal
Service.

 

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

 

4.4            Governing
Law; Severability. This Agreement and the Exercise Notice shall be administered, interpreted and enforced under the laws of the State
of Delaware, without regard to the conflicts of law principles thereof. Should any provision of this Agreement be determined by a court
of law to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.

 

4.5            Conformity
to Securities Laws. Participant acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the
Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder,
and state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Nonqualified
Stock Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent
permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and
regulations.

 

4.6           Successors
and Assigns. The Company may assign any of its rights under this Agreement and the Exercise Notice to single or multiple assignees,
and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein
set forth, this Agreement shall be binding upon Participant and his or her heirs, executors, administrators, successors and assigns.

 

    A-3

     

    

 

4.7           Stockholders
Agreement. Upon receipt of Shares pursuant to exercise of the Nonqualified Stock Option, Participant hereby agrees to join and become
a party to that certain Management Stockholders Agreement of the Company to be entered into by the Company and the participants under
the Plan, as may be amended from time to time (the “Management Stockholders Agreement”), and the Company hereby agrees
to accept Participant as a party to, the Management Stockholders Agreement, and this Agreement shall serve as Participant’s joinder
to the Management Stockholders Agreement. By virtue of the grant of the Nonqualified Stock Option hereunder and Participant’s execution
of this Agreement, Participant shall be deemed to have granted Participant’s perpetual and irrevocable power of attorney to the
Company, with full right, power and authority to take all actions necessary and/or desirable on behalf of Participant to effectuate the
provisions of the Stockholders Agreement with respect to all Shares owned by Participant and as may be acquired by Participant. 

 

4.8            Entire Agreement.
The Plan, the Stockholders Agreement and this Agreement (including all Exhibits hereto) constitute the entire agreement of the parties
and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter
hereof.

 

* * * * *

 

    A-4

     

    

 

EXHIBIT B

 

TO STOCK OPTION GRANT NOTICE

 

  FORM OF EXERCISE NOTICE

 

Effective as of
today,                      ,
                   , the undersigned (“Participant”) hereby elects to exercise Participant’s option
to purchase                     Shares of Stripes US Holding, Inc. (the “Company”)
under and pursuant to the Stripes US Holding, Inc. 2019 Omnibus Incentive Plan (the “Plan”)
and the Stock Option Grant Notice and Stock Option Agreement dated ____________,
____ (the “Option Agreement”). Capitalized terms used herein without definition shall have the
meanings given in the Option Agreement.

 

	Grant Date:	 	
	 
	Number of Shares as to which Nonqualified Stock Option is Exercised:	 	
	 
	Exercise Price per Share:	 	$ ____________
	 
	Total Exercise Price:	 	$ ____________
	 
	Certificate to be issued in name of:	 	
	 
	Cash Payment delivered herewith:	 	$____________ (Representing, together with the Value of [•] Shares below, the full Exercise Price for the Shares)
	 
	Value of ___ Shares pursuant to net exercise:	 	$____________ (Representing, together with the cash payment above, the full Exercise Price for the Shares)

 

	Type
    of Option:	 ̈  Incentive
Stock Option	 ̈     Nonqualified
    Stock Option

 

1.        Representations
of Participant. Participant acknowledges that Participant has received, read and understood the Plan and the Option Agreement. Participant
agrees to abide by and be bound by their terms and conditions.

 

2.        Tax
Consultation. Participant understands that Participant may suffer adverse tax consequences as a result of Participant’s
purchase or disposition of the Shares. Participant represents that Participant has consulted with any tax consultants
Participant deems advisable in connection with the purchase or disposition of the Shares and that Participant is not relying on the
Company for any tax advice. Participant is relying solely on such advisors and not on any statements or representations of the
Company or any of its agents. Participant understands that Participant (and not the Company) shall be responsible for
Participant’s tax liability that may arise as a result of this investment or the transactions contemplated by this
Agreement.

 

    B-1

     

    

 

 

3.        Restrictive
Legends and Stop-Transfer Orders.

 

 (a)         Legends.
Participant understands and agrees that the Company shall cause any certificates issued evidencing the Shares to have the legends set
forth below or legends substantially equivalent thereto, together with any other legends that may be required by state or federal securities
laws:

 

THE
SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (“ACT”), NOR HAVE THEY BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. NO TRANSFER
OF SUCH SECURITIES WILL BE PERMITTED UNLESS A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO SUCH TRANSFER, THE TRANSFER IS
MADE IN ACCORDANCE WITH RULE 144 UNDER THE ACT, OR IN THE OPINION OF COUNSEL (WHICH MAY BE COUNSEL FOR THE COMPANY)
REGISTRATION UNDER THE ACT IS UNNECESSARY
IN ORDER FOR SUCH TRANSFER TO COMPLY WITH THE ACT AND WITH APPLICABLE STATE SECURITIES LAWS.

 

THE SHARES REPRESENTED BY THIS
CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT
BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF
THE COMPANY. SUCH TRANSFER RESTRICTIONS ARE
BINDING ON TRANSFEREES OF THESE SHARES.

 

 (b)       Participant agrees
that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer”
instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to
the same effect in its own records.

 

 (c)       The Company shall not
be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions
of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other
transferee to whom such Shares shall have been so transferred.

 

4.         Notices.
Any notice required or permitted hereunder shall be given in accordance with the provisions set forth in Section 4.2 of the Option
Agreement.

 

5.         Further
Instruments. Participant hereby agrees to execute such further instruments and to take such further action as the Company determines
are reasonably necessary to carry out the purposes and intent of this Agreement.

 

6.        Entire
Agreement. The Plan and Option Agreement are incorporated herein by reference. This Agreement, the Plan and the Option Agreement constitute
the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant
with respect to the subject matter hereof.

 

	ACCEPTED BY:	 	SUBMITTED BY
	STRIPES US HOLDING, INC.	 	PARTICIPANT:
	 	 	 
	By:	 ________________________________________________________	 	By: 	                      

	Print Name:	           	 	Print Name:	 

	Title:		 	 	 

 

    B-2Exhibit 10.12

 

MATTRESS FIRM HOLDING CORP.

ANNUAL SHORT-TERM INCENTIVE PLAN

 

This Annual Short-Term Incentive
Plan (the “Plan”') has been established to advance the interest of Mattress Firm Holding Corp. (the “Company”)
by providing for the grant of Awards (as defined in Section III below) to employees of the Company and its Affiliates.

 

I.              ADMINISTRATION

 

The Plan will be administered
by the Board of Directors of Stripes US Holding, Inc., a Delaware corporation and parent company of the Company (the “Board”).
The Board shall have the authority to interpret the Plan, and any interpretation or decision by the Board with regard to any questions
arising under the Plan shall be final and conclusive on all parties. The Board may delegate to other persons such duties, powers and responsibilities
as it deems appropriate.

 

II.             ELIGIBILITY;
PARTICIPANTS

 

Executive officers and other
key employees of the Company and its Affiliates shall be eligible to participate in the Plan. An “Affiliate”
means any corporation or other entity that stands in a relationship to the Company that would result in the Company and such corporation
or other entity being treated as one employer under Section 4 l4(b) and Section 414(c) of the Internal Revenue Code
of 1986, as amended (the “Code”). The persons who shall from time to time participate in the Plan (each, a “Participant”)
shall be identified in such person’s offer letter of employment or employment agreement with the Company or its Affiliate. Participation
by a Participant with respect to one Award under the Plan shall not entitle the individual to participate with respect to a subsequent
Award or Awards, if any, or at a similar level as any prior Award or Awards.

 

III.           GRANT
OF AWARDS

 

The term “Award”
as used in the Plan means a cash bonus that is granted to a Participant with respect to the performance period (the “Performance
Period”) to which the Award relates. A Participant who is granted an Award shall be entitled to a payment, if any, under
the Award only if all conditions to payment have been satisfied in accordance with the Plan and the terms of the Award. By accepting (or,
under such rules as the Board may prescribe, being deemed to have accepted) an Award, the Participant agrees to the terms of the
Award and the Plan. A Participant will be deemed to have accepted an Award if the Participant does not expressly reject such Award in
writing. Except as otherwise specified by the Board in connection with the grant of an Award, the Performance Period applicable to Awards
under the Plan shall be the fiscal year of the Company.

 

IV.           PERFORMANCE
CRITERIA

 

As used in the Plan, the term
 “Performance Criteria” means specified criteria, the satisfaction of which is a condition for the vesting or
full enjoyment of an Award. A Performance Criterion and any targets with respect thereto determined by the Board need not be based upon
an increase, a positive or improved result or avoidance of loss. All Awards issued under the Plan shall be subject to the following Performance
Criteria:

 

		(a)	the Company’s achievement of the target earnings or losses before taxes, before interest and taxes,
or before interest, taxes, depreciation and/or amortization, or “EBITDA” as set forth in the Company’s
annual budget for the Performance Period approved by the Board, as the same may be amended
by the Board during the Performance Period (the “EBITDA Criteria”);

 

		(b)	the Company’s achievement of the year-end cash flow target as set forth in the Company’s annual budget for the
Performance Period approved by the Board, as the same may be amended by the Board during the Performance Period (the “Cash
Criteria”, and, together with the EBITDA Criteria, the “Criteria”); and

 

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		(c)	any other objective criteria based on Company performance that may be specified by the Board, if any.

 

 V.            DETERMINATION OF PERFORMANCE SATISFACTION; AMOUNT PAYABLE UNDER AWARDS

 

As soon as practicable after
the close of a Performance Period, the Board shall determine whether and to what extent, if at all, the Performance Criterion or Criteria
applicable to each Award granted for the Performance Period have been satisfied. The Board shall then determine the actual payment, if
any, under each Award. If any Performance Criteria is partially satisfied, the Board may authorize and approve a partial payment of the
Award in correlation to the percentage at which the Performance Criteria was satisfied. Unless otherwise specified by the Board, (a) if
the EBITDA Criteria and the Cash Criteria are achieved at less than 90% of targeted Criteria amounts, then no payments under the Awards
shall be made, (b) if the EBITDA Criteria and the Cash Criteria are achieved between 90% and 110% of targeted Criteria amounts,
then the Award payout shall be calculated via straight-line interpolation by reference to the EBITDA Criteria and the Cash Criteria,
and (c) if the EBITDA Criteria and the Cash Criteria are achieved at more than 110% of targeted Criteria amounts, the CEO may, in
his discretion, propose additional bonus payments to one or more Participants, subject to the approval of the Board; provided that none
of the Company’s CEO, Executive Chairman, COO, CFO or EVP of Sales & Service (or equivalent position) may receive more
than 100% of such Participant’s base salary as an additional bonus under clause (c). The Board may, in its sole and absolute discretion
and with or without specifying its reasons for doing so, after determining the amount that would otherwise be payable under any Award
for a Performance Period, reduce (including to zero) the actual payment, if any, to be made under such Award. The Board may exercise
the discretion described in the immediately preceding sentence either in individual cases or in ways that affect more than one Participant.

 

The Award payable to each Participant
shall be equal to a percentage of such Participant’s base salary earnings during the Performance Period, which target percentage
shall be set forth in the Participant’s offer letter of employment or employment agreement with the Company or its Affiliate. In
respect of fiscal year 2017, in the event that 100% of targeted Criteria amounts are attained, the Award payable to each Participant,
subject to the Board’s discretion as provided herein, shall be 150% of such Participant’s target payout percentage.

 

VI.           PAYMENT
UNDER AWARDS

 

Except as otherwise provided
in this Section VI, all payments under the Plan will be made within sixty (60) days after the Board’s determination of the
satisfaction, if any, of the Performance Criteria. Except as otherwise determined by the Board or as expressly provided in a Participant’s
individual employment agreement, no payment shall be made under an Award unless the Participant’s employment with the Company or
its Affiliates continues through the date such Award is paid. Payments hereunder are intended to fall under the short-term deferral exception
to Section 409A of the Code and the regulations thereunder (collectively, “Section 409A”), and shall
be construed and administered accordingly. Notwithstanding the foregoing, (i) if the Award letter or other documentation establishing
the Award provides a specified and objectively determinable payment date or schedule that satisfies the requirements of Section 409A,
payment under an Award may be made in accordance with such date or schedule, and (ii) the Board may, but need not, permit a Participant
to defer payment of an Award beyond the date that the Award would otherwise be payable, provided that any such deferral shall be made
in accordance with and subject to the applicable requirements of Section 409A.

 

VII.          TAX
WITHHOLDINGS

 

All payments under the Plan shall be subject to reduction
for applicable tax and other legally or contractually required withholdings.

 

VIII.         AMENDMENT
AND TERMINATION

 

The Board may amend the Plan at any time and from
time to time. The Board may at any time terminate the Plan.

 

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IX.           MISCELLANEOUS

 

(a) Awards held by a Participant
are subject to forfeiture, termination and rescission, and a Participant will be obligated to return to the Company payments received
with respect to Awards, in each case (i) to the extent provided by the Board in connection with (A) a breach by the Participant
of a non-competition, non-solicitation, confidentiality or similar covenant or agreement or (B) an overpayment to the Participant
of incentive compensation due to inaccurate financial data, (ii) in accordance with Company policy relating to recovery of erroneously-paid
incentive compensation, as such policy may be amended and in effect from time to time, or (iii) as otherwise required by law or applicable
stock exchange listing standards. Each Participant, by accepting an Award pursuant to the Plan, agrees to return the full amount required
under this Section IX(a) at such time and in such manner as the Board shall determine in its sole discretion and consistent
with applicable law. The Company will not be responsible for any adverse tax or other consequences to a Participant that may arise in
connection with this Section IX(a).

 

(b) No person shall have
any claim or right to be granted an Award, nor shall the participation in the Plan for any Performance Period be construed as giving a
Participant the right to be retained in the employ or service of the Company or its Affiliates for that Performance Period or for any
other period. The loss of an Award will not constitute an element of damages in the event of termination of employment for any reason,
even if the termination is in violation of an obligation of the Company or any Affiliate to the Participant.

 

		(c)	The Plan shall be effective as of October 5, 2016.

 

 (d) Except as otherwise provided by the express terms of an Award agreement, the provisions of the Plan and of Awards granted under the Plan and all claims or disputes arising out of our based upon the Plan or any Award under the Plan or relating to the subject matter hereof or thereof will be governed by and construed in accordance with the laws of the State of Delaware without giving effect to any choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.

 

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