Form of Key Employee Option Agreement


 Exhibit 10.3 
  
 NONSTATUTORY STOCK OPTION AGREEMENT 
 (Employee, Director or Consultant) 
  
 AGREEMENT made as of the      day of                     ,
200    , between TRICO MARINE SERVICES, INC., a Delaware corporation (the “Company”), and
                             (“Optionee”). 
  
 To carry out the purposes of the TRICO MARINE SERVICES, INC. 2004 STOCK
INCENTIVE PLAN (the “Plan”), by affording Optionee the opportunity to purchase shares of the common stock of the Company, par value $.01 per share (“Stock”), and in consideration of the mutual agreements and other matters set
forth herein and in the Plan, the Company and Optionee hereby agree as follows: 
  
 1. Grant of Option. The Company hereby irrevocably grants to Optionee the right and option (“Option”) to purchase all or any part of an aggregate of
                     shares of Stock on the terms and conditions set forth herein and in the Plan, which Plan is incorporated herein by
reference as a part of this Agreement. In the event of any conflict between the terms of this Agreement and the Plan, the Plan shall control. Capitalized terms used but not defined in this Agreement shall have the meaning attributed to such terms
under the Plan, unless the context requires otherwise. This Option shall not be treated as an incentive stock option within the meaning of section 422(b) of the Code. 
  
 2. Purchase Price. The purchase price of Stock purchased pursuant to the exercise of this Option shall be
$             per share, which has been determined to be not less than the Fair Market Value of the Stock at the date of grant of this Option. For all purposes of this Agreement,
Fair Market Value of Stock shall be determined in accordance with the provisions of the Plan. 
  
 3. Exercise of Option. Subject to the earlier expiration of this Option as herein provided, this Option may be exercised, by written notice to the Company at its principal executive office addressed to
the attention of its Corporate Secretary (or such other officer or employee of the Company as the Company may designate from time to time), at any time and from time to time after the date of grant hereof, but, except as otherwise provided below,
this Option shall not be exercisable for more than a percentage of the aggregate number of shares offered by this Option determined by the number of full years from the date of grant hereof to the date of such exercise, in accordance with the
following schedule: 
  

			
	 Number of Full Years

	  	 Percentage of Shares
 That May Be Purchased


	 Less than 1 year
	  	33 1/3%
	                   1 year
	  	50%
	                   2 years
	  	66 2/3%
	                   3 years
	  	83 1/3%
	                   4 or more years
	  	100%

  
 This Option may be exercised only
while Optionee remains an employee of the Company and will terminate and cease to be exercisable upon Optionee’s termination of employment with the Company, except that: 
  
 (a) If Optionee’s employment with the Company terminates by reason of disability (within the meaning of
section 22(e)(3) of the Code), this Option may be exercised by Optionee (or Optionee’s estate or the person who acquires this Option by will or the laws of descent and distribution or otherwise by reason of the death of Optionee) at any time
during the period of one year following such termination, but only as to the number of shares Optionee was entitled to purchase hereunder as of the date Optionee’s employment so terminates. 






 (b) If Optionee dies while in the employ of the Company, Optionee’s estate, or the
person who acquires this Option by will or the laws of descent and distribution or otherwise by reason of the death of Optionee, may exercise this Option at any time during the period of one year following the date of Optionee’s death, but only
as to the number of shares Optionee was entitled to purchase hereunder as of the date of Optionee’s death. 
  
 (c) If Optionee’s employment with the Company terminates for any reason other than as described in (a) or (b) above, this Option may
be exercised by Optionee at any time during the period of three months following such termination, or by Optionee’s estate (or the person who acquires this Option by will or the laws of descent and distribution or otherwise by reason of the
death of Optionee) during a period of one year following Optionee’s death if Optionee dies during such three month period, but in each case only as to the number of shares Optionee was entitled to purchase hereunder as of the date
Optionee’s employment so terminates. 
  
 This Option shall not be exercisable
in any event after the expiration of seven years from the date of grant hereof. The purchase price of shares as to which this Option is exercised shall be paid in full at the time of exercise (a) in cash (including check, bank draft or money order
payable to the order of the Company), (b) by delivering or constructively tendering to the Company shares of Stock having a Fair Market Value equal to the purchase price (provided such shares used for this purpose must have been held by Optionee for
such minimum period of time as may be established from time to time by the Committee), (c) if the Stock is readily tradable on a national securities market, through a “broker-assisted cashless exercise” in accordance with a Company
established policy or program for the same, or (d) any combination of the foregoing. No fraction of a share of Stock shall be issued by the Company upon exercise of an Option or accepted by the Company in payment of the exercise price thereof;
rather, Optionee shall provide a cash payment for such amount as is necessary to effect the issuance and acceptance of only whole shares of Stock. Unless and until a certificate or certificates representing such shares shall have been issued by the
Company to Optionee, Optionee (or the person permitted to exercise this Option in the event of Optionee’s death) shall not be or have any of the rights or privileges of a shareholder of the Company with respect to shares acquirable upon an
exercise of this Option. 
  
 4. Withholding of Tax.
To the extent that the exercise of this Option or the disposition of shares of Stock acquired by exercise of this Option results in compensation income or wages to Optionee for federal, state or local tax purposes, Optionee shall deliver to the
Company at the time of such exercise or disposition such amount of money as the Company may require to meet its minimum obligation under applicable tax laws or regulations. No exercise of this Option shall be effective until Optionee (or the person
entitled to exercise this Option, as applicable) has made arrangements approved by the Company to satisfy all applicable minimum tax withholding requirements of the Company. 
  
 5. Status of Stock. The Company intends to register for issuance under the Securities Act of 1933, as amended
(the “Act”), the shares of Stock acquirable upon exercise of this Option, and to keep such registration effective throughout the period this Option is exercisable. In the absence of such effective registration or an available exemption
from registration under the Act, issuance of shares of Stock acquirable upon exercise of this Option will be delayed until registration of such shares is effective or an exemption from registration under the Act is available. The Company intends to
use its reasonable efforts to ensure that no such delay will occur. In the event exemption from registration under the Act is available upon an exercise of this Option, Optionee (or the person permitted to exercise this Option in the event of
Optionee’s death or incapacity), if requested by the Company to do so, will execute and deliver to the Company in writing an agreement containing such provisions as the Company may require to assure compliance with applicable securities laws.

  

 2 







 Optionee agrees that the shares of Stock which Optionee may acquire by exercising this Option will not be
sold or otherwise disposed of in any manner which would constitute a violation of any applicable federal or state securities laws. Optionee also agrees that (i) the certificates representing the shares of Stock purchased under this Option may bear
such legend or legends as the Committee deems appropriate in order to assure compliance with applicable securities laws, (ii) the Company may refuse to register the transfer of the shares of Stock purchased under this Option on the stock transfer
records of the Company if such proposed transfer would in the opinion of counsel satisfactory to the Company constitute a violation of any applicable securities law, and (iii) the Company may give related instructions to its transfer agent, if any,
to stop registration of the transfer of the shares of Stock purchased under this Option. 
  
 6. Employment Relationship. For purposes of this Agreement, Optionee shall be considered to be in the employment of the Company as long as Optionee remains (i) an employee of, (ii) a member of the board
of directors of, or (iii) a Consultant to, either the Company, an Affiliate, or a corporation or a parent or subsidiary of such corporation assuming or substituting a new option for this Option. Without limiting the scope of the preceding sentence,
it is expressly provided that Optionee shall be considered to have terminated employment with the Company at the time of the termination of the “Affiliate” status under the Plan of the entity or other organization that employs Optionee or
to which Optionee otherwise provides services. Any question as to whether and when there has been a termination of such employment relationship, and the cause of such termination, shall be determined by the Committee, and its determination shall be
final. 
  
 7. Surrender of Option. At any time and
from time to time prior to the termination of this Option, Optionee may surrender all or a portion of this Option to the Company for no consideration by providing written notice to the Company at its principal executive office addressed to the
attention of its Corporate Secretary (or such other officer or employee of the Company as the Company may designate from time to time). Such notice shall specify the number of shares with respect to which this Option is being surrendered and, if
this Option is being surrendered with respect to less than all of the shares then subject to this Option, then such notice shall also specify the date upon which this Option became (or would become) exercisable in accordance with Paragraph 3 with
respect to the shares being surrendered. 
  
 8. Additional
Agreement. Promptly following the later of the date of grant of this Option and the publication by the Internal Revenue Service of regulations (whether final, proposed or temporary) or other formal guidance regarding section 409A of the
Code, the Company and Optionee shall determine whether or not this Agreement provides for a deferral of compensation subject to section 409A of the Code. If the Company and Optionee determine that this Agreement does provide for such a deferral,
then Optionee and the Committee shall work together so that this Agreement may be amended by no later than December 31, 2005, in a manner that is mutually agreeable to Optionee and the Committee and which will cause this Agreement to not provide for
a deferral of compensation subject to section 409A of the Code, which amendment may include, without limitation, a change in the purchase price set forth in Paragraph 2 above. 
  
 9. Binding Effect. This Agreement shall be binding upon and inure to the benefit of any successors to the
Company and all persons lawfully claiming under Optionee. 
  
 10.
Entire Agreement. This Agreement constitutes the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties with
respect to the Option granted hereby; provided, however, that 

  

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the terms of this Agreement shall not modify and shall be subject to the terms and conditions of any employment and/or severance agreement between the
Company (or an Affiliate) and the Optionee in effect as of the date a determination is to be made under this Agreement. Without limiting the scope of the preceding sentence, except as provided therein, all prior understandings and agreements, if
any, among the parties hereto relating to the subject matter hereof are hereby null and void and of no further force and effect. Any modification of this Agreement shall be effective only if it is in writing and signed by both Optionee and an
authorized officer of the Company. 
  
 11. Governing
Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas, without regard to conflicts of laws principles thereof. 
  
 IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its officer thereunto duly
authorized, and Optionee has executed this Agreement, all as of the day and year first above written. 
  

			
	TRICO MARINE SERVICES, INC.
		
	By:	 	  


	
	  


	 	 	Optionee


  

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