Exhibit 10.7
STOCK OPTION AGREEMENT
(Non-Qualified Stock Option)
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THIS STOCK OPTION AGREEMENT is entered into as of ______________ (the
"Grant Date") by and between The Scotts Company ("Scotts" or "we") and
_____________ ("Optionee" or "you").
1. Grant of Option. You are hereby granted an option (the "Option")
under Scotts' 1996 Stock Option Plan (the "Plan") to purchase _______ common
shares of Scotts. This Option is not intended to qualify as an incentive stock
option under Section 422 of the Internal Revenue Code of 1986.
2. Terms and Conditions of Your Option. The purchase price (the "Option
Price") to be paid by you upon the exercise of your Option is $_______ per
share. Subject to the terms and conditions of the Plan: a) you may exercise your
Option immediately, however, if you exercise your Option within three years of
the Grant Date, you agree that all proceeds will be retained by Scotts; b) if
your employment with Scotts or any of its affiliates is terminated within three
years from the Grant Date, the exercisability of your Option will be governed by
Section 7 of the Plan; and c) your Option terminates and ceases to be
exercisable on the fifth anniversary of the Grant Date.
3. Exercise. Once vested, you may exercise your Option, in whole or in
part, by delivering to Xxxxxxx Xxxxx a signed notice of exercise. If you die or
transfer your Option as permitted under the Plan, the person entitled to
exercise the Option must deliver the signed notice of exercise. The notice of
exercise must state the number of whole common shares being purchased. You may
pay the Option Price in any manner permitted by Section 6.4 of the Plan. You (or
if you die, your estate) will be responsible for paying to Scotts the amount of
any taxes we are required by law to withhold in connection with the exercise of
the Option. You may satisfy these tax withholding requirements in any manner
permitted under Section 10.4 of the Plan. No proceeds from the exercise of your
Option will be paid to you until all tax withholding requirements have been
satisfied.
4. Your Rights as a Shareholder. You have no rights or privileges as a
shareholder of Scotts as to any of the common shares covered by the Option until
you are issued a share certificate.
5. General. This Agreement incorporates and your Option is subject to
all of the provisions of the Plan which are not specifically described in this
Agreement. If there is any inconsistency between the provisions of this
Agreement and those of the Plan, the provisions of the Plan control. This
Agreement is governed by Ohio law. This Agreement represents the entire and
exclusive agreement between you and Scotts concerning your Option grant. Any
change, termination or attempted waiver of the provisions of this Agreement must
be made in a writing signed by you and Scotts. The rights and obligations of
Scotts under this Agreement will also extend to our successors and assigns.
IN WITNESS WHEREOF, Scotts has caused this Agreement to be
executed by its duly authorized officer, and Optionee has executed this
Agreement, in each case, effective as of the Grant Date.
THE SCOTTS COMPANY
By:
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Xxxxx X. Xxxxxxxxx
Executive Vice President, General Counsel
Optionee acknowledges receipt of a copy of the Plan and the Prospectus
dated October 1, 2002, and all supplements thereto, related to the Plan.
Optionee represents that Optionee is familiar with the terms and conditions of
the Plan. By signing below, Optionee accepts the Option subject to all terms and
conditions of this Agreement and the Plan. Optionee agrees to accept as binding,
conclusive and final all decisions or interpretations of the committee
administering the Plan should any questions arise under the Plan or this
Agreement.
OPTIONEE:
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Signature of Optionee
