Exhibit 10(n)
Form of Incentive Stock Option Agreement that Vests 25% per Annum
No. Shares: ____________ Date of Grant: ___________
INCENTIVE STOCK OPTION AGREEMENT
2004 OMNIBUS STOCK AND INCENTIVE PLAN
FOR DENBURY RESOURCES INC.
An Incentive Stock Option (the "Option") for a total of _________________
Shares (collectively, "Option Shares") of Denbury Resources Inc.(the "Company"),
is hereby granted to ________________ (the "Optionee") on _______________ ("Date
of Grant") at the Option Price determined in this Option and in all respects
subject to the terms, definitions and provisions, of the 2004 Omnibus Stock and
Incentive Plan For Denbury Resources Inc. (the "Plan"), which is incorporated
herein by reference except to the extent otherwise expressly provided in this
Option.
1. Option Price. The Option Price is _______________________ for each Share,
which price is the Fair Market Value of a Share on the Date of Grant.
2. Vesting of Option Shares. The Option Shares shall Vest and become Vested
Option Shares in accordance with the dates set forth in the following Vesting
Schedule:
(i) 25% of the Option Shares on the first anniversary of the Date of
Grant,
(ii) 25% of the Option Shares on the second anniversary of the Date of
Grant;
(iii) 25% of the Option Shares on the third anniversary of the Date of
Grant; and
(iv) 25% of the Option Shares on the fourth anniversary of the Date of
Grant.
Without limiting the generality of the forgoing, in the event that, prior to the
fourth (4th) anniversary of the Date of Grant, either (i) Optionee incurs a
Separation by reason of Optionee's death, or Disability, or (ii) there is a
Change in Control, then all of the Option Shares which have not previously
become Vested Option Shares shall become Vested Option Shares as of the date of
such death, Disability or Change in Control.
3. Exercisability of Option. This Option shall not be exercisable prior to the
first date on which Shares become Vested, and thereafter (and prior to the
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termination of this Option), this Option shall be exercisable, in whole or in
part, with respect to Vested Option Shares.
(a) Method of Exercise. Without limitation, this Option shall be
exercised by a written notice delivered to the Administrator which shall:
(i) state the election to exercise the Option and the number of
Vested Option Shares in respect of which it is being exercised; and
(ii) be signed by the person or persons entitled to exercise the
Option and, if the Option is being exercised by any person or persons
other than the Optionee, be accompanied by proof, satisfactory to the
Administrator, of the rights of such person or persons to exercise the
Option.
(b) Payment. The Option Price of any Vested Option Shares purchased
shall be paid by the Optionee to the Administrator in cash, or by the
delivery of Shares held by Optionee for at least 6 months (which period
may, in the sole discretion of the Administrator, be increased to the
extent the Administrator deems necessary in order to avoid a charge to the
Company's earnings), or both. To the extent Shares are used in payment of
the Option Price, the value of such Shares shall be their Fair Market Value
on the date of delivery to the Administrator.
(c) Issuance of Shares. No person shall be, or have any of the rights
or privileges of, a holder of the Shares subject to this Option unless and
until certificates representing such Shares shall have been issued and
delivered to such person, such issuance, without limitation, being subject
to the terms of the Plan.
(d) Surrender of Option. Upon exercise of this Option in part, if
requested by the Administrator, the Optionee shall deliver this Option and
other written agreements executed by the Company and the Optionee with
respect to this Option to the Administrator who shall endorse or cause to
be endorsed thereon a notation of such exercise and return all agreements
to the Optionee.
4. Term of Option. Without limitation, the unexercised portion of this Option
shall automatically terminate at the time of the earliest to occur of the
following:
(i) on the 90th day following Optionee's Separation for any reason
except death, Disability or for Cause; or
(ii) immediately upon Optionee's Separation as a result, in whole or
in material part, of a discharge for Cause; or
(iii) on the first anniversary of a Optionee's Separation by reason of
death or Disability;
(iv) if you are a 10% Person, on the fifth (5th ) anniversary of the
Date of Grant; or
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(v) on the tenth (10th) anniversary of the Date of Grant
5. No Transfers Permitted. The rights under this Option are not transferable by
the Optionee otherwise than by will or the laws of descent and distribution, and
so long as Optionee lives, only Optionee or his or her guardian or legal
representative shall have the right to exercise this Option.
6. No Right To Continued Employment. Neither the Plan nor this Option shall
confer upon the Optionee any right with respect to continuation of employment by
the Company, or any right to provide services to the Company, nor shall it
interfere in any way Optionee's right to terminate employment, nor the Company's
right to terminate Optionee's employment, at any time.
7. Law Governing. WITHOUT LIMITATION, THIS OPTION SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF DELAWARE.
Dated as of this _______ day of ______________, 2005.
DENBURY RESOURCES INC.
Per:____________________________
Gareth Roberts, President
Per:____________________________
Phil Rykhoek, Sr. V.P., C.F.O.
and Secretary
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Acknowledgment
The undersigned hereby acknowledges (i) my receipt of this Option, (ii) my
opportunity to review the Plan, (iii) my opportunity to discuss this Option with
a representative of the Company, and my personal advisors, to the extent I deem
necessary or appropriate, (iv) my understanding of the terms and provisions of
the Option and the Plan, and (v) my understanding that, by my signature below, I
am agreeing to be bound by all of the terms and provisions of this Option and
the Plan.
Without limitation, I agree to accept as binding, conclusive and final all
decisions or interpretations (including, without limitation, all interpretations
of the meaning of provisions of the Plan, or Option, or both) of the
Administrator upon any questions arising under the Plan, or this Option, or
both.
Dated as of this ________ day of ______________, 200__.
________________________________
Optionee Name
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