BG
Staffing, Inc.


2013
Long-Term Incentive Plan


 


Form
of Nonqualified Stock Option Agreement


 





This Nonqualified Stock
Option Agreement (this “Agreement”) is made and entered into as of the Grant Date below by and between BG Staffing,
Inc., a Delaware corporation (the “Company”) and _______________ (the “Participant”).


 


Grant Date: 


 


Exercise Price per Share:



 


Number of Option Shares:



 


Expiration Date: 


 


1.                 
Grant of Option


 


1.1             
Grant; Type of Option. The Company hereby grants to the Participant an option (the “Option”) to
purchase the total number of shares of Common Stock of the Company equal to the number of Option Shares set forth above, at the
Exercise Price set forth above. The Option is being granted pursuant to the terms of the Company’s 2013 Long-Term Incentive
Plan (the “Plan”). The Option is not intended to be an Incentive Stock Option within the meaning of Section
422 of the Code.


 


1.2             
Consideration; Subject to Plan. The grant of the Option is made in consideration of the services to be rendered by
the Participant to the Company and is subject to the terms and conditions of the Plan. Capitalized terms used but not defined herein
will have the meaning ascribed to them in the Plan.


 


2.                 
Exercise Period; Vesting


 


2.1             
Vesting Schedule. The Option will be immediately vested and exercisable.


 


2.2             
Expiration. The Option will expire on the Expiration Date set forth above, or earlier as provided in this Agreement
or the Plan.


 


3.                 
Termination of Continuous Service


 


3.1             
Termination for Reasons Other Than Death. If the Participant’s Continuous Service is terminated for any reason
other than death, the Participant will retain the right to exercise the Option until the Expiration Date. If the Participant dies
after his Continuous Service ceases, the provisions of Section 3.2 will apply as though the Participant ceased Continuous Service
on his date of death.


 


3.2             
Termination Due to Death. If the Participant’s Continuous Service terminates as a result of the Participant’s
death, the Option may be exercised by the Participant’s estate, by a person who acquired the right to exercise the Option
by bequest or inheritance, or by the person designated to exercise the Option upon the Participant’s death, at any time until
the Expiration Date.


 






    	 



    	 



    

 


Nonqualified Stock
Option Agreement for [NAME]


Grant Date:


 


4.     
Manner of Exercise


 


4.1             
Election to Exercise. To exercise the Option, the Participant (or the Participant’s executor, administrator,
heir or legatee, as the case may be) must deliver to the Company a notice of intent to exercise in the manner designated by the
Committee. If someone other than the Participant exercises the Option, that person must submit documentation reasonably acceptable
to the Committee verifying that the person has the legal right to exercise the Option.


 


4.2             
Payment of Exercise Price. The entire Exercise Price of the Option will be payable in full at the time of exercise
to the extent permitted by applicable statutes and regulations, either:


 


(a)      
in cash or by certified or bank check at the time the Option is exercised;


 


(b)      
by delivery to the Company of other shares of Common Stock, duly endorsed for transfer to the Company, with a Fair Market
Value on the date of delivery equal to the Exercise Price (or portion thereof) due for the number of shares being acquired, or
by means of attestation whereby the Participant identifies for delivery specific shares that have a Fair Market Value on the date
of attestation equal to the Exercise Price (or portion thereof) and receives a number of shares equal to the difference between
the number of shares thereby purchased and the number of identified attestation shares (a “Stock for Stock Exchange”);


 


(c)      
through a “cashless exercise program” established with a broker;


 


(d)      
by reduction in the number of shares otherwise deliverable upon exercise of the Option with a Fair Market Value equal to
the aggregate Exercise Price at the time of exercise;


 


(e)      
by any combination of the foregoing methods; or


 


(f)       
in any other form of legal consideration that may be acceptable to the Committee.


 


4.3             
Withholding. The Participant must make arrangements satisfactory to the Company to pay or provide for any applicable
federal, state and local withholding obligations of the Company. The Participant may satisfy any federal, state or local tax withholding
obligation relating to the exercise of the Option by any of the following means:


 


(a)      
tendering a cash payment;


 


(b)      
authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant
as a result of the exercise of the Option; provided, however, that no shares of Common Stock are withheld with a value exceeding
the minimum amount of tax required to be withheld by law; or


 


(c)      
delivering to the Company previously owned and unencumbered shares of Common Stock.


 


The Company has the
right to withhold from any compensation paid to a Participant.


 


4.4             
Issuance of Shares. Provided that the exercise notice and payment are in form and substance satisfactory to the Company,
the Company will issue the shares of Common Stock registered in the name of the Participant, the Participant’s authorized
assignee, or the Participant’s legal representative that will be evidenced by stock certificates representing the shares
with the appropriate legends affixed thereto, appropriate entry on the books of the Company or of a duly authorized transfer agent,
or other appropriate means as determined by the Company.


 






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Nonqualified Stock
Option Agreement for [NAME]


Grant Date:



 


5.                 
No Right to Continued Service; No Rights as Shareholder. Neither the Plan nor this Agreement confer
upon the Participant any right to be retained in any position as an Employee or Director of the Company. Further, nothing in the
Plan or this Agreement may be construed to limit the discretion of the Company to terminate the Participant’s Continuous
Service at any time, with or without Cause. The Participant will not have any rights as a shareholder with respect to any shares
of Common Stock subject to the Option unless and until certificates representing the shares have been issued by the Company to
the holder of the shares, or the shares have otherwise been recorded on the books of the Company or of a duly authorized transfer
agent as owned by the holder.


 


6.                 
Transferability. The Option is not transferable by the Participant other than to a designated beneficiary
upon the Participant’s death or by will or the laws of descent and distribution, and is exercisable during the Participant’s
lifetime only by the Participant. No assignment or transfer of the Option, or the rights represented thereby, whether voluntary
or involuntary, by operation of law or otherwise (except to a designated beneficiary, upon death, by will or the laws of descent
or distribution) will vest in the assignee or transferee any interest or right whatsoever, but immediately upon the assignment
or transfer the Option will terminate and become of no further effect.


 


7.                 
Cash-Out Upon Change in Control. In the event of a Change in Control, the Committee may, in its discretion
and upon at least ten days’ advance notice to the Participant, cancel the Option and pay to the Participant the value of
the Option based upon the price per share of Common Stock received or to be received by other stockholders of the Company in the
event. Notwithstanding the foregoing, if at the time of a Change in Control the Exercise Price of the Option equals or exceeds
the price paid for a share of Common Stock in connection with the Change in Control, the Committee may cancel the Option without
the payment of consideration.


 


8.                 
Adjustments. The shares of Common Stock subject to the Option may be adjusted or terminated in any
manner as contemplated by the Plan.


 


9.                 
Tax Liability and Withholding. Notwithstanding any action the Company takes with respect to any or
all income tax, Social Security tax, payroll tax, or other tax-related withholding (“Tax-Related Items”), the
ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and the Company (a) makes no
representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting, or exercise
of the Option or the subsequent sale of any shares acquired on exercise; and (b) does not commit to structure the Option to reduce
or eliminate the Participant’s liability for Tax-Related Items.


 


10.             
Compliance with Law. The exercise of the Option and the issuance and transfer of shares of Common Stock
will be subject to compliance by the Company and the Participant with all applicable requirements of federal and state securities
laws and with all applicable requirements of any stock exchange on which the Company’s shares of Common Stock may be listed.
No shares of Common Stock will be issued pursuant to this Option unless and until any then applicable requirements of state or
federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. The Participant
understands that the Company is under no obligation to register the shares with the Securities and Exchange Commission, any state
securities commission, or any stock exchange to effect such compliance.


 


11.             
Notices. Any notice required to be delivered to the Company under this Agreement must be in writing
and addressed to the Chief Financial Officer of the Company at the Company’s principal corporate offices. Any notice required
to be delivered to the Participant under this Agreement will be in writing and addressed to the Participant at the Participant’s
address as shown in the records of the Company. Either party may designate another address in writing (or by other method approved
by the Company) from time to time.


 






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Nonqualified Stock
Option Agreement for [NAME]


Grant Date:



 


12.             
Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the
State of Delaware without regard to conflict of law principles.


 


13.             
Interpretation. Any dispute regarding the interpretation of this Agreement must be submitted by the
Participant or the Company to the Committee for review. The resolution of the dispute by the Committee will be final and binding
on the Participant and the Company.


 


14.             
Options Subject to Plan. This Agreement is subject to the Plan as approved by the Company’s stockholders.
The terms and provisions of the Plan, as amended from time to time, are incorporated by reference. In the event of a conflict between
any term or provision contained in this Agreement and a term or provision of the Plan, the applicable terms and provisions of the
Plan will govern and prevail.


 


15.             
Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement
will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer
set forth herein, this Agreement will be binding upon the Participant and the Participant’s beneficiaries, executors, administrators,
and the person(s) to whom this Agreement may be transferred by will or the laws of descent or distribution.


 


16.             
Severability. The invalidity or unenforceability of any provision of the Plan or this Agreement will
not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan
and this Agreement will be severable and enforceable to the extent permitted by law.


 


17.             
Discretionary Nature of Plan. The Plan is discretionary and may be amended, cancelled, or terminated
by the Company at any time, in its discretion. The grant of the Option in this Agreement does not create any contractual right
or other right to receive any Options or other Awards in the future. Future Awards, if any, will be at the sole discretion of the
Company. Any amendment, modification, or termination of the Plan will not constitute a change or impairment of the terms and conditions
of the Participant’s employment or other service with the Company.


 


18.             
Amendment. The Committee has the right to amend, alter, suspend, discontinue or cancel the Option,
prospectively or retroactively; provided, that, no amendment may adversely affect the Participant’s material rights
under this Agreement without the Participant’s consent.


 


19.             
No Impact on Other Benefits. The value of the Participant’s Option is not part of the Participant’s
normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance, or similar benefit.


 


20.             
Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original
but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted
by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to
preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper
document bearing an original signature.


 


21.             
Acceptance. The Participant acknowledges receipt of a copy of the Plan and this Agreement. The Participant
has read and understands the terms and provisions thereof, and accepts the Option subject to all of the terms and conditions of
the Plan and this Agreement. The Participant acknowledges that there may be adverse tax consequences upon exercise of the Option
or disposition of the underlying shares and that the Participant should consult a tax advisor prior to such exercise or disposition.


 





[Signature
Page Follows]


 






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Nonqualified Stock
Option Agreement for [NAME]


Grant Date:



 


 


BG
Staffing, Inc.


 


 


 


By: ______________________________________


 


L. Allen
Baker, Jr., Chief Executive Officer


 


 


Participant


 


_________________________________________


 


[NAME]


 






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