Sample Business Contracts

Stock Option Agreement - Hansen Natural Corp. and Hilton H. Schlosberg

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	  This Stock Option Agreement  ("Agreement") is made as of May 28, 2003,
by and between  Hansen Natural  Corporation,  a Delaware  corporation  (the
"Company"), and Hilton H. Schlosberg ("Holder").

						  Preliminary Recitals

	  A. Holder is an employee of the Company or one of its  subsidiaries or

	  B. Pursuant to the Hansen Natural  Corporation  2001 Stock Option Plan
(the "Plan"), the Company desires to grant Holder an incentive stock option
to purchase shares of the Company's common stock, par value $.005 per share
(the "Common  Stock"),  subject to the terms and conditions of the Plan and
subject further to the terms and conditions set forth below.

	NOW, THEREFORE, the Company and Holder agree as follows:

	  1. Grant of  Incentive  Stock  Option.  The Company  hereby  grants to
Holder, subject to the terms and conditions set forth herein, the incentive
stock option ("ISO") to purchase up to 150,000  shares of Common Stock,  at
the  purchase  price of $4.20 per  share,  such ISO to be  exercisable  and
exercised as hereinafter provided.

	  2.  Exercise  Period.  The ISO shall  expire  three  months  after the
termination   of  the  Holder's   employment   with  the  Company  and  its
subsidiaries  and affiliates  (the "Hansen Group") unless the employment is
terminated by a member of the Hansen Group for Cause (as defined  below) or
unless  the  employment  is  terminated  by  reason  of the  death or Total
Disability  (as defined  below) of Holder.  If the Holder's  employment  is
terminated by a member of the Hansen Group for Cause,  the ISO shall expire
as of the date employment terminates. If the Holder's employment terminates
due to his  death or Total  Disability,  then the ISO may be  exercised  by
Holder  or the  person or  persons  to which  Holder's  rights  under  this
Agreement  pass by  will,  or if no such  person  has  such  right,  by his
executors or  administrators,  within six months after the date of death or
Total  Disability,  but no later  than the  expiration  date  specified  in
Section 3(d) below.  "Cause" means the Holder's act of fraud or dishonesty,
knowing  material  failure to comply with  applicable  laws or regulations,
drug or alcohol abuse, as determined by the Committee of the Hansen Natural
Corporation Stock Option Plan (the  "Committee").  "Total Disability" means
the complete and permanent inability of Holder to perform all of his duties
of employment  with the Company,  as  determined by the Committee  upon the
basis of such evidence,  including independent medical reports and data, as
the Committee deems appropriate or necessary.

	3.      Exercise of Option

		   (a) Subject to the other terms of this  Agreement  regarding  the
	  exercisability of the ISO, the ISO may only be exercised in respect of
	  the  number of shares  listed in column A from and after the  exercise
	  dates listed in column B,

					Column "A"                       Column "B"
				Number of Shares                   Exercise Date
				----------------                   ---------------
					 30,000                        January 1, 2004
					 30,000                        January 1, 2005
					 30,000                        January 1, 2006
					 30,000                        January 1, 2007
					 30,000                        January 1, 2008

		   (b) This ISO may be exercised,  to the extent  exercisable by its
	  terms,  from time to time in whole or in part at any time prior to the
	  expiration  thereof.  Any exercise  shall be  accompanied by a written
	  notice to the Company specifying the number of shares as to which this
	  ISO is being exercised (the "Option Shares"). Notations of any partial
	  exercise  or  installment  exercise,  shall be made by the  Company on
	  Schedule A hereto.

		   (c)   Notwithstanding   the  above,   this  ISO  shall  be  fully
	  exercisable in the event Holder's  employment with the Hansen Group is
	  terminated by Holder for "Good Reason" (as defined below), or a member
	  of the Hansen Group  terminates  his  employment  without  "Cause" (as
	  defined  above).  "Good  Reason"  means the  Holder's  termination  of
	  employment  with  the  Hansen  Group on or  after a  reduction  in his
	  compensation  or benefits,  his removal as the Company's Vice Chairman
	  of the Board of Directors,  President,  Chief Operating Officer, Chief
	  Financial  Officer  or  Secretary,  or his  being  assigned  duties or
	  responsibilities that are inconsistent with the dignity, importance or
	  scope of his position with the Company.

		   (d)  Notwithstanding  anything else herein to the contrary,  this
	  ISO shall expire ten years from the date of this agreement.

		   (e) The Holder  hereby agrees to notify the Company in writing in
	  the event  shares  acquired  pursuant to the  exercise of this ISO are
	  transferred,  other  than  by  will  or by the  laws  of  descent  and
	  distribution,  within  two  years  after the date  indicated  above or
	  within one year after the  issuance  of such  shares  pursuant to such

	  4.  Payment  of  Purchase  Price  Upon  Exercise.  At the  time of any
exercise of the ISO the purchase  price of the ISO shall be paid in full to
the Company in either of the following  ways or in any  combination  of the
following ways:

		   (a) By check or other immediately available funds.

		   (b) With  property  consisting  of shares of Common  Stock.  (The
	  shares of Common Stock to be used as payment shall be valued as of the
	  date of exercise of the ISO at the Closing Price as defined below. For
	  example,  if Holder  exercises  the option for 4,000 shares at a total
	  Exercise Price of $7,000,  assuming exercise price of $1.75 per share,
	  and the Closing Price is $5.00, he may pay for the 4,000 Option Shares
	  by transferring 1,400 shares of Common Stock to the Company.)

		   (c) For  purposes of this  Agreement,  the term  "Closing  Price"
	  means, with respect to the Company's Common Stock, the last sale price
	  regular-way  or, in case no such sale takes  place on such  date,  the
	  average  of the  closing  bid  and  asked  prices  regular-way  on the
	  principal  national  securities  exchange on which the  securities are
	  listed or admitted to trading;  or, if they are not listed or admitted
	  to trading on any national securities exchange, the last sale price of
	  the securities on the consolidated transaction reporting system of the
	  National  Association of Securities Dealers (NASD"), if such last sale
	  information  is reported on such  system or, if not so  reported,  the
	  average of the closing bid and asked prices of the  securities  on the
	  National  Association of Securities Dealers Automatic Quotation System
	  ("NASDAQ")  or any  comparable  system or, if the  securities  are not
	  listed on NASDAQ or a  comparable  system,  the average of the closing
	  bid and asked prices as furnished by two members of NASD selected from
	  time to time by the Company for that purpose.

	  5. Purchase for Investment; Resale Restrictions. Unless at the time of
exercise  of the ISO  there  shall be a valid  and  effective  registration
statement  under the  Securities  Act of 1933 ("'33  Act") and  appropriate
qualification  and  registration  under  applicable  state  securities laws
relating to the Option Shares being acquired, Holder shall upon exercise of
the ISO give a representation  that he is acquiring such shares for his own
account for  investment  and not with a view to, or for sale in  connection
with, the resale or distribution of any such shares. In the absence of such
registration  statement,  Holder shall execute a written affirmation,  in a
form  reasonably  satisfactory to the Company,  of such investment  intent.
Holder  further  agrees that he will not sell or transfer any Option Shares
until he requests and receives an opinion of the Company's counsel or other
counsel  reasonably  satisfactory  to the  Company to the effect  that such
proposed  sale or transfer will not result in a violation o the '33 Act, or
a  registration  statement  covering the sale or transfer of the shares has
been declared  effective by the Securities and Exchange  Commission,  or he
obtains a no-action letter from the Securities and Exchange Commission with
respect to the proposed transfer.

	  6.  Nontransferability.  This ISO shall not be transferable other than
by will or by the laws of descent and distribution.  During the lifetime of
Holder, this ISO shall be exercisable only by Holder.

	  7. Adjustments.

		   (a) If the Company  hereafter (i) declares a distribution  on its
	  shares in shares, (ii) splits its outstanding  shares,  (iii) combines
	  its  outstanding  shares into a smaller  number of  securities or (iv)
	  issues  any  shares or other  securities  by  reclassification  of its
	  shares  (including  any such  reclassification  in  connection  with a
	  consolidation  or  merger  in  which  the  Company  is the  continuing
	  entity),  the purchase  price in effect at the time of the record date
	  for  such  distribution  or the  effective  date of such  subdivision,
	  combination  or  reclassification  shall be  adjusted so that it shall
	  equal the price  determined  by  multiplying  the purchase  price by a
	  fraction,  the  denominator  of which  shall be the  number  of shares
	  outstanding  immediately  after giving effect to such action,  and the
	  numerator  of  which  shall  be  the  number  of  shares   outstanding
	  immediately prior to such action.  Whenever the purchase price payable
	  upon  exercise  of  the  ISO is  adjusted  pursuant  to the  preceding
	  sentence above,  number of shares purchasable upon exercise of the ISO
	  shall  simultaneously  be adjusted by multiplying the number of shares
	  issuable upon exercise of the ISO immediately prior to the event which
	  causes the  adjustment  by the  purchase  price in effect  immediately
	  prior to the event  which  causes  the  adjustment  and  dividing  the
	  product  so  obtained  by  the  purchase  price,  as  adjusted.   Such
	  adjustments shall be made successively whenever any event listed above
	  shall occur.

		   (b) If, at any time, as a result of an  adjustment  made pursuant
	  to paragraph 7(a) above,  the Holder shall become  entitled to receive
	  any  securities of the Company  other than shares,  the number of such
	  other  securities  so  receivable  upon  exercise  of  the  ISO  shall
	  thereafter be subject to adjustment  from time to time in a manner and
	  on terms as nearly  equivalent as practicable  to the provisions  with
	  respect to the shares contained in paragraph 7(a) above.

		   (c) If any other event  contemplated in Section 10(a) of the Plan
	  occurs,  adjustments  to the number and kind of shares subject to this
	  ISO and/or to the  purchase  price for each share  subject to this ISO
	  may be made in accordance with Section 10(a) of the Plan.

		   (d) No adjustments  shall be made under this Section 7 that would
	  have the effect of modifying this ISO under Internal  Revenue Code 422
	  or 424.

		   (e)  Whenever  the  purchase  price or the  number  of  shares is
	  adjusted, as herein provided,  Hansen shall within 10 business days of
	  the event  causing such  adjustment  give a notice  setting  forth the
	  adjusted  purchase price and adjusted  number of shares  issuable upon
	  exercise of the ISO to be mailed to the Holder.

		   (f)  Notwithstanding  anything else herein to the contrary,  upon
	  the  occurrence of a change in control (as defined in (g) below),  the
	  option or any  portion  thereof  not  theretofore  exercisable,  shall
	  immediately  become  exercisable in its entirety and the option (being
	  the  option  to  purchase  shares  of  Common  Stock  subject  to  the
	  applicable  provisions of the Plan and awarded in accordance  with the
	  Plan in terms of section 1 above) may, with the consent of Holder,  be
	  purchased  by the Company for cash at a price equal to the fair market
	  value (as defined in 7(g) below) less the  purchase  price  payable by
	  Holder to  exercise  the  option as set out in Article 1 above for one
	  (1) share of Common Stock of the Company  multiplied  by the number of
	  shares of Common  Stock  which  Holder has the option to  purchase  in
	  terms of Article 1 above.

		   (g) For the purposes of this agreement

				(i) "Change in Control" means;

					 (A) the  acquisition of  "Beneficial  Ownership" by any
				person (as  defined in rule 13 (d) - 3 under the  Securities
				Exchange Act 1934),  corporation  or other entity other than
				the Company or a wholly owned  subsidiary  of the Company of
				20% or more of the outstanding Stock,

					 (B) the sale or disposition of substantially all of the
				assets of the Company, or

					 (C) the merger of the Company with another  corporation
				in which  the  Common  Stock  of the  Company  is no  longer
				outstanding after such merger.

				(ii) "Fair Market Value" means,  as of any date, the Closing
		   Price for one share of the  Common  Stock of the  Company on such

     8. The  provisions  of  Section  5(b)  (iii)  of the  Plan,  regarding  the
execution of a shareholder's agreement as a condition precedent to the Company's
obligation  to issue  shares  under the Plan,  shall not apply to the ISO or any
shares issued pursuant to the ISO.

     9. The  Company  represents  and  warrants  to Holder that (a) there are no
options  to  purchase  the  Company's  Common  Stock,  containing  the  same  or
substantially  the same  terms as the  ISO,  which  are  actively  traded  on an
established  market  within the  meaning  of  Internal  Revenue  Code 83 and the
regulations promulgated  thereunder;  and (b) the shares of the Company's Common
Stock issued upon exercise of the ISO, when issued in accordance  with the terms
hereof, will be duly authorized,  validly issued,  fully paid and nonassessable.
The Company  shall  reserve and keep  reserved out of its  authorized  shares of
Common Stock the number of shares of Common Stock that may be issuable from time
to time upon exercise of the ISO.

     10. No Rights as Stockholder.  Holder shall have no rights as a stockholder
with respect to any shares of Common Stock subject to this ISO prior to the date
of issuance to him of a certificate or certificates for such shares.

     11. No Right to Continue  Employment.  This Agreement shall not confer upon
Holder any right with respect to  continuance  of employment  with any member of
the Hansen  Group nor shall it  interfere  in any way with the right of any such
member to terminate his employment at any time.

     12.  Compliance With Law and Regulation.  This Agreement and the obligation
of the Company to sell and deliver  shares of Common  Stock  hereunder  shall be
subject to all applicable  federal and state laws,  rules and regulations and to
such approvals by any government or regulatory agency as may be required.  If at
any time the Board of  Directors  of the Company  shall  determine  that (i) the
listing,  registration or qualification of the shares of Common Stock subject or
related thereto upon any securities  exchange or under any state or federal law,
or (ii) the consent or approval of any government  regulatory body, is necessary
or desirable as a condition  of or in  connection  with the issue or purchase of
shares of Common Stock  hereunder,  this ISO may not be exercised in whole or in
part unless such  listing,  registration,  qualification,  consent,  approval or
agreement  shall have been  effected  or  obtained  free of any  conditions  not
acceptable to the Board of Directors.  The Company  agrees to use its reasonable
efforts to obtain any necessary listing, registration,  qualification,  consent,
approval or agreement  as  expeditiously  as possible,  and the term of this ISO
shall be extended until 30 days  following the date such listing,  registration,
qualification, consent, approval or agreement is effected or obtained. Moreover,
this ISO may not be exercised if its exercise or the receipt of shares of Common
Stock pursuant thereto would be contrary to applicable law.

     13.  Tax  Withholding  Requirements.  The  Company  shall have the right to
require  Holder to remit to the  Company an amount  sufficient  to  satisfy  any
federal,  state or local  withholding tax requirements  prior to the delivery of
any certificate or certificates for Common Stock.

     14.  Fractional  Shares.   Notwithstanding  any  other  provision  of  this
Agreement,  no  fractional  shares of stock shall be issued upon the exercise of
this ISO and the Company shall not be under any obligation to compensate  Holder
in any way for such fractional shares.

     15. Notices.  Any notice  hereunder to the Company shall be addressed to it
at its office at 1010 Railroad  Street,  Corona,  California  92882,  Attention:
Rodney Sacks with a copy to Benjamin  Polk,  Winston & Strawn,  200 Park Avenue,
New York, New York 10166,  and any notice hereunder to Holder shall be addressed
to him at 2 Nidden,  Irvine,  California  92715,  subject to the right of either
party to designate at any time hereafter in writing some other address.

     16.  Amendment.  No  modification,  amendment  or  waiver  of  any  of  the
provisions of this Agreement shall be effective  unless in writing  specifically
referring hereto, and signed by both parties.

     17. Governing Law. This Agreement shall be construed  according to the laws
of the  State of  Delaware  and all  provisions  hereof  shall  be  administered
according to and its validity shall be determined under, the laws of such State,
except where preempted by federal laws.

     18.   Counterparts.   This  Agreement  may  be  executed  in  one  or  more
counterparts, each of which shall constitute one and the same instrument.

     IN WITNESS WHEREOF, Hansen Natural Corporation has caused this Agreement to
be executed by a duly authorized  officer and Holder has executed this Agreement
both as of the day and year first above written.

                                                   HANSEN  NATURAL  CORPORATION

                                            By:/s/ RODNEY C. SACKS
                                            Title: Chairman and CEO

Hilton H. Schlosberg