Exhibit 10.6
NATURE VISION, INC.
NONSTATUTORY OPTION AGREEMENT
This
nonstatutory option agreement (this “ Agreement
”) among Nature Vision, Inc., f/k/a Photo Control
Corporation, a Minnesota corporation (the “ Company
”) and _____________ (the “ Optionee ”),
takes effect on ______________ (the “ Grant Date
”). Subject to the terms and conditions of this Agreement,
the Company hereby grants to the Optionee an option (the “
Option ”) under the Company’s 2004 Stock
Incentive Plan (the “ Plan ”) to purchase
_________ shares of Common Stock (the “ Shares
”).
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1.
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Nonstatutory Stock
Option. The Option shall
be a Nonqualified Stock Option, as that term is used and defined in
the Plan.
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2.
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Purchase Price.
The purchase price of the Shares
shall be $_____ per Share.
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3.
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Period of Exercise
. The Option will expire on November
3, 2009, the fifth anniversary of the Grant Date (the “
Expiration Date ”).The Option may be exercised only
while the Optionee is actively engaged in providing services to the
Company as an Eligible Employee, Consultant or Director and as
otherwise provided in Section 6 of this Agreement.
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4.
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Vesting Schedule
. The Option will vest as
follows:
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(a)
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The Option may not be exercised
before November 3, 2005.
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(b)
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_______ Shares will vest and may
be purchased in accordance with the terms of this Agreement on
November 3, 2005.
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(c)
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An additional _______ Shares will
vest and may be purchased in accordance with the terms of this
Agreement on November 3, 2006.
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(d)
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An additional _______Shares will
vest and may be purchased in accordance with the terms of this
Agreement on May 3, 2009. Notwithstanding the foregoing, the
vesting and purchase schedule of the Shares described in this
Section 4(d) may be accelerated and adjusted as follows: (i)
______of the Shares will vest and may be purchased on March 31,
2006 if certain performance targets for the Company are met in the
Company’s 2005 fiscal year; and (ii) ______of the Shares will
vest and may be purchased on March 31, 2007 if certain performance
targets for the Company are met in the Company’s 2006 fiscal
year. The performance targets described above shall be set by the
Administrator (as defined in the Plan) and the Administrator shall
determine, in its sole and absolute discretion, whether such
performance targets have been met by the Company for the applicable
fiscal year.
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5.
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Transferability.
The Option is not transferable
except by will or the laws of descent and distribution and may only
be exercised during the lifetime of the Optionee by the
Optionee.
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6.
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Termination of
Services. Except as
otherwise agreed to by the Company and the Optionee in writing, in
the event that the Optionee ceases to provide services to the
Company as an Eligible Employee, Consultant or Director, the
Optionee may purchase Shares which have vested under Section 4 in
the three months following the date of the termination, subject to
the following:
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(a)
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If the Optionee’s services
were terminated due to the Optionee’s Retirement or Total
Disability, the Optionee may purchase Shares which have vested
under Section 4 in the 12 months following the date of the
termination.
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(b)
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If the Optionee dies, the Option
may be exercised (to the extent exercisable by the Optionee at the
date of death) by the legal representative of the Optionee or by a
person who acquired the right to exercise the Option by bequest or
inheritance or by reason of the death of the Optionee, but the
Option must be exercised within one year after the date of the
Optionee’s death.
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(c)
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If the Optionee’s services
were terminated by the Company for cause, as determined by the
Administrator in his, her or its sole discretion, the Option and
all of the Optionee’s rights under this Agreement shall
terminate immediately.
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(d)
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Notwithstanding the foregoing, in
no event may any Shares be purchased after the Expiration
Date.
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7.
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Right to Terminate
. Nothing in the Option or in any
agreement entered into pursuant to the Option will interfere with
or limit in any way the right of the Company to terminate the
employment or service of any Eligible Employee, Consultant or
Director at any time, nor confer upon any Eligible Employee,
Consultant or Director any right to continue in the employ or
service of the Company.
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8.
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No Rights of
Shareholders. The
Optionee does not have any dividend rights, voting rights or other
rights or privileges of a shareholder with respect to any Shares
covered by the Option until the date of issuance of a stock
certificate for such Shares. No adjustment shall be made for cash
dividends or other rights for which the record date is before the
date of such an issuance, except as expressly provided in the
Plan.
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9.
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Method of
Exercise.
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(a)
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The Option may be exercised and
Shares may be purchased by the Optionee’s delivery of written
notice to the Company in the form attached to this Agreement as
Exhibit A (each, an “ Exercise Notice ”).
Each Exercise Notice must be accompanied by (i) payment of the full
purchase price of the Shares to be purchased, in such form or
combination of forms as described in this Section 9, and, if
applicable, (ii) proof of the right to exercise the Option and
purchase Shares if the exercise and purchase are pursuant to the
terms described in Sections 6(a) and (b) of this
Agreement.
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(b)
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As soon as practicabl
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