exv10w17







Exhibit 10.17




NOTICE OF GRANT OF [INCENTIVE/NON-QUALIFIED] STOCK OPTION AWARD




PRIMO WATER CORPORATION

2010 OMNIBUS LONG-TERM INCENTIVE PLAN




     FOR GOOD AND VALUABLE CONSIDERATION, Primo Water Corporation (the “Company”) hereby
grants, pursuant to the provisions of the Company’s 2010 Omnibus Long-Term Incentive Plan (the
“Plan”), to the Optionee designated in this Notice of Grant of [Incentive/Non-Qualified] Stock
Option Award (the “Notice”) an option to purchase the number of shares of the Common Stock of the
Company set forth in the Notice (the “Shares”), subject to certain restrictions as outlined below
in this Notice and the additional provisions set forth in the attached Terms and Conditions of
Stock Option Award (collectively, the “Agreement”).



	 	 	 

	Optionee: [                    ]

	 	Type of Option:
[Incentive/Non-Qualified] Stock Option
	 
	 	 
	Exercise Price per Share: $                    

	 	Date of Grant:                     
	 
	 	 
	Total Number of
Shares Granted:                     

	 	Expiration Date:                     





Vesting Schedule: Subject to the Terms and Conditions and the provisions of the Plan,
this Option shall vest and become exercisable, in accordance with the following schedule, in
the event the Optionee does not have a Separation from Service prior to the applicable
vesting date:




	 	 	 

	Date
of Vesting

	 	Cumulative Amount Vested
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 





Acceleration of Vesting: Notwithstanding the foregoing Vesting Schedule, the Option shall be
deemed fully vested and exercisable in the event of the Optionee’s death or Disability.
Further, vesting of the Option shall be accelerated in accordance with the terms of any
applicable employment, change in control or similar agreement between the Optionee and the
Company or an Affiliate which is in effect during the Term (the “Employment Agreement”).



Exercise After Separation from Service:



Separation from Service for any reason other than death, Disability or for Cause: any
non-vested portion of the Option expires immediately and any vested portion of the Option
remains exercisable for [thirty (30) days] following the Separation from Service;


Separation from Service due to death or Disability: the entire Option, including any
non-vested portion for which vesting is accelerated above, is exercisable by the Optionee
(or the Optionee’s beneficiary in the event of the Optionee’s death) for [twelve (12)
months] following the Optionee’s Separation from Service;


Separation from Service for Cause: the entire Option, including any vested and non-vested
portion, expires immediately upon Separation from Service.



IN NO EVENT MAY THIS OPTION BE EXERCISED AFTER THE EXPIRATION DATE AS PROVIDED ABOVE.



By signing below, the Optionee agrees that this [Incentive/Non-Qualified] Stock Option Award is
granted under and governed by the terms and conditions of the Company’s 2010 Omnibus Long-Term
Incentive Plan and the attached Terms and Conditions.




	 	 	 	 	 	 	 
	Optionee 	 	
Primo Water Corporation
 	 

	 
	 	 	By:  	 	 
	 	 	 	 	Title:  	 	 
	Date: 	 	 	 	                             Date: 	 	 



 









 






	 	 	 	 	 



TERMS AND CONDITIONS OF STOCK OPTION AWARD





     1. Grant of Option. The Option granted to the Optionee and described in the Notice of
Grant is subject to the terms and conditions of the Plan, which is incorporated by reference in its
entirety into these Terms and Conditions of Stock Option Award.



          The Board of Directors of the Company has authorized and approved the 2010 Omnibus Long-Term
Incentive Plan (the “Plan”), which has been approved by the stockholders of the Company. The
[Board/Committee] has approved an award to the Optionee of a number of shares of the Company’s
Common Stock, conditioned upon the Optionee’s acceptance of the provisions set forth in the Notice
and these Terms and Conditions within 60 days after the Notice and these Terms and Conditions are
presented to the Optionee for review. For purposes of the Notice and these Terms and Conditions,
any reference to the Company shall include a reference to any Affiliate.




          If designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this Option is
intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code.
Nevertheless, to the extent that the Option fails to meet the requirements of an ISO under Section
422 of the Code, this Option shall be treated as a Non-qualified Stock Option (“NSO”).




          The Company intends that this Option not be considered to provide for the deferral of
compensation under Section 409A of the Code and that this Agreement shall be so administered and
construed. Further, the Company may modify the Plan and this Award to the extent necessary to
fulfill this intent.




     2. Exercise of Option.



          (a) Right to Exercise. This Option shall be exercisable, in whole or in part, during
its term in accordance with the Vesting Schedule set out in the Notice of Grant and with the
applicable provisions of the Plan and this Agreement. No Shares shall be issued pursuant to the
exercise of an Option unless the issuance and exercise comply with applicable laws. Assuming such
compliance, for income tax purposes the Shares shall be considered transferred to the Optionee on
the date on which the Option is exercised with respect to such Shares. The [Board/Committee] may,
in its discretion and pursuant to its administrative authority under Section 3.1 of the Plan, (i)
accelerate vesting of the Option, or (ii) extend the applicable exercise period of the Option.




          (b) Method of Exercise. The Optionee may exercise the Option by delivering an
exercise notice in a form approved by the Company (the “Exercise Notice”) which shall state the
election to exercise the Option, the number of Shares with respect to which the Option is being
exercised, and such other representations and agreements as may be required by the Company. The
Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Shares
exercised. This Option shall be deemed to be exercised upon receipt by the Company of such fully
executed Exercise Notice accompanied by the aggregate Exercise Price.




     3. Method of Payment. If the Optionee elects to exercise the Option by submitting an
Exercise Notice under Section 2(b) of this Agreement, the aggregate Exercise Price (as well as any
applicable withholding or other taxes) shall be paid by cash or check; provided, however, that the
[Board/Committee] may accept, in its discretion, payment in any of the following forms, or a
combination of them:



          (a) cash or check;




          (b) a “net exercise” under which the Company reduces the number of shares of Common Stock
issued upon exercise by the largest whole number of shares with a Fair Market Value that






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does not exceed the aggregate Exercise Price and any applicable withholding, or such other
consideration received by the Company under a cashless exercise program approved by the Company in
connection with the Plan;




          (c) surrender of other shares of Common Stock owned by the Optionee which have a Fair Market
Value on the date of surrender equal to the aggregate Exercise Price of the exercised Shares and
any applicable withholding; or




          (d) any other consideration that the [Board/Committee] deems appropriate and in compliance
with applicable law.




     4. Restrictions on Exercise. This Option may not be exercised if the issuance of the
Shares upon exercise or the method of payment of consideration for those shares would constitute a
violation of any applicable law, regulation or Company policy.



     5. Non-Transferability of Option. This Option may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution and may be exercised during the
lifetime of the Optionee only by the Optionee [IF THE OPTION IS A NSO, THE FOLLOWING LANGUAGE MAY
BE INCLUDED PERMITTING LIMITED TRANSFER OF THE OPTION] [; provided, however, that the Optionee may
transfer the Option (i) pursuant to a qualified domestic relations order (as defined by the Code or
the rules thereunder) or (ii) to any Family Member of the Optionee in accordance with Section
17.12.2 of the Plan by delivering to the Company a Notice of Assignment in a form acceptable to the
Company. No transfer or assignment of the Option to or on behalf of a Family Member under this
Section 5 shall be effective until the Company has acknowledged such transfer or assignment in
writing]. The terms of the Plan and this Option Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of the Optionee.



     6. Term of Option. This Option may be exercised only within the term set out in the
Notice of Grant, and may be exercised during such term only in accordance with the Plan and the
terms of this Agreement.



     7. Withholding.



          (a) The [Board/Committee] shall determine the amount of any withholding or other tax required
by law to be withheld or paid by the Company with respect to any income recognized by the Optionee
with respect to the Option Award.




          (b) The Optionee shall be required to meet any applicable tax withholding obligation in
accordance with the provisions of Section 17.3 of the Plan.




          (c) Subject to any rules prescribed by the [Board/Committee], the Optionee shall have the
right to elect to meet any withholding requirement (i) by having withheld from this Award at the
appropriate time that number of whole shares of common stock whose Fair Market Value is equal to
the amount of any taxes required to be withheld with respect to such Award, (ii) by direct payment
to the Company in cash of the amount of any taxes required to be withheld with respect to such
Award or (iii) by a combination of shares and cash.




     8. Defined Terms. Capitalized terms used but not defined in the Notice and these
Terms and Conditions shall have the meanings set forth in the Plan, unless such term is defined in
any employment or similar agreement between the Optionee and the Company or an Affiliate. Any
terms used in the Notice and these Terms and Conditions, but defined in an employment or similar
agreement with the Optionee are incorporated herein by reference and shall be effective for
purposes of the Notice



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and these Terms and Conditions without regard to the continued effectiveness of such
employment or similar agreement.




     9. Optionee Representations. The Optionee hereby represents to the Company that the
Optionee has read and fully understands the provisions of the Notice, these Terms and Conditions
and the Plan and the Optionee’s decision to participate in the Plan is completely voluntary.
Further, the Optionee acknowledges that the Optionee is relying solely on his or her own advisors
with respect to the tax consequences of this stock option award.



     10. Regulatory Limitations on Exercises. Notwithstanding the other provisions of this
Agreement, the [Board/Committee] shall have the sole discretion to impose such conditions,
restrictions and limitations (including suspending the exercise of the Option and the tolling of
any applicable exercise period during such suspension) on the issuance of Common Stock with respect
to this Option unless and until the [Board/Committee] determines that such issuance complies with
(i) any applicable registration requirements under the Securities Act or the [Board/Committee] has
determined that an exemption therefrom is available, (ii) any applicable listing requirement of any
stock exchange on which the Common Stock is listed, (iii) any applicable Company policy or
administrative rules, and (iv) any other applicable provision of state, federal or foreign law,
including foreign securities laws where applicable.



     11. Miscellaneous.




(a) Notices. All notices, requests, deliveries, payments, demands and other
communications which are required or permitted to be given under these Terms and Conditions
shall be in writing and shall be either delivered personally or sent by registered or
certified mail, or by private courier, return receipt requested, postage prepaid to the
parties at their respective addresses set forth herein, or to such other address as either
shall have specified by notice in writing to the other. Notice shall be deemed duly given
hereunder when delivered or mailed as provided herein.




(b) Waiver. The waiver by any party hereto of a breach of any provision of the
Notice or these Terms and Conditions shall not operate or be construed as a waiver of any
other or subsequent breach.




(c) Entire Agreement. These Terms and Conditions, the Notice, the Plan and any
applicable Employment Agreement constitute the entire agreement between the parties with
respect to the subject matter hereof.




(d) Binding Effect; Successors. These Terms and Conditions shall inure to the
benefit of and be binding upon the parties hereto and to the extent not prohibited herein,
their respective heirs, successors, assigns and representatives. Nothing in these Terms and
Conditions, express or implied, is intended to confer on any person other than the parties
hereto and as provided above, their respective heirs, successors, assigns and
representatives any rights, remedies, obligations or liabilities.




(e) Governing Law. The Notice and these Terms and Conditions shall be governed by
and construed in accordance with the laws of the State of North Carolina without giving
effect to the principles of conflicts of law, provided that the provisions set forth herein
that are required to be governed by the Delaware General Corporation Law shall be governed
by such law.




(f) Headings. The headings contained herein are for the sole purpose of convenience
of reference, and shall not in any way limit or affect the meaning or interpretation of any
of the terms or provisions of these Terms and Conditions.



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(g) Conflicts; Amendment. The provisions of the Plan are incorporated in these
Terms and Conditions in their entirety. In the event of any conflict between the provisions
of this Agreement and the Plan, the provisions of the Plan shall control. Further, in the
event of any conflict between the provisions of this Agreement and any Employment Agreement,
the provisions of such Employment Agreement shall control. The Agreement may be amended at
any time by the [Board/Committee], provided that no amendment may, without the consent of
the Optionee, materially impair the Optionee’s rights with respect to the Option.




(h) No Right to Continued Employment. Nothing in the Notice or these Terms and
Conditions shall confer upon the Optionee any right to continue in the employ or service of
the Company or affect the right of the Company to terminate the Optionee’s employment or
service at any time.




(i) Further Assurances. The Optionee agrees, upon demand of the Company or the
[Board/Committee], to do all acts and execute, deliver and perform all additional documents,
instruments and agreements which may be reasonably required by the Company or the
[Board/Committee], as the case may be, to implement the provisions and purposes of the
Notice and these Terms and Conditions and the Plan.




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