Exhibit 10.11


 


NATURE’S SUNSHINE PRODUCTS, INC.


STOCK OPTION AGREEMENT


 


THIS STOCK OPTION AGREEMENT (this “Agreement”) is dated as of the    th
day of199   (the “Award Date”), between NATURE’S SUNSHINE
PRODUCTS, INC., a Utah corporation (the “Corporation”), and
                                            
(“Employee”).


 


A.           The Corporation has adopted, subject to the
approval of the shareholders of the Corporation, the Nature’s Sunshine Products, Inc.
1995 Stock Option Plan (the “Plan”); and


 


B.             Pursuant to the Plan and as evidenced by
this Agreement, the Corporation has granted to Employee a certain stock option,
defined in Section 1, hereof, which option is not intended as and shall
not be deemed to be an incentive stock option within the meaning of Section 422
of the Internal Revenue Code, as may be amended.


 


NOW, THEREFORE, in consideration of services rendered and to be
rendered by Employee for the Corporation, the Corporation and Employee hereby
agree to the provisions set forth herein.


 


1.              Option Granted. This Agreement evidences
the grant to Employee, as of the Award Date, subject to shareholder approval of
the Plan, of an option to purchase an aggregate of      
(      ) shares of Common Stock under the Plan
subject to adjustment as provided in the Plan (the “Option”).


 


2.              Exercise Price. The Option entitles
Employee to purchase all or any portion of the Option shares at a price per
share of       Dollars and       
Cents ($       ), exercisable from time to
time, subject to the provisions of this Agreement and the Plan. Such price is
the Fair Market Value of the shares on the Award Date.


 


3.              Exercisability of Option. The Option may
be exercised beginning on         .
To the extent Employee does not in any year purchase all or any portion of the
shares to which Employee is entitled to purchase, Employee has the cumulative
right thereafter to purchase any shares not so purchased and such right shall
continue until the Option terminates. When the Option terminates for any
reason, no additional shares may be purchased under this Option.


 


4.              Acceleration in Exercisability of Option.
Notwithstanding anything to the contrary contained herein, the date of
exercisability of the Option or a portion of the shares thereof as provided
herein shall be accelerated to the later of (i) the date of shareholder
approval of the Plan, (ii) July 20, 1996 or (iii) the twentieth
day following the end of any quarter (beginning with the quarter of 199    ),
where the Corporation achieves (i) an increase in consolidated net income
in such quarter of 25 percent over consolidated net income for the
corresponding quarter in the 


 

















 


preceding year, and (ii) an increase in
consolidated sales revenue of 25 percent over consolidated sales for the
corresponding quarter in the preceding year. The amount of shares subject to
acceleration of exercisability shall be as follows:    
shares for each full percent over 25 percent that consolidated net income in
such quarter is increased over consolidated net income for the corresponding quarter
for the preceding year. For example, if consolidated net income in the second
quarter of 1996 is 28% higher than consolidated net income in the second
quarter of 1995, then    shares subject to the Option shall
be exercisable on July 20, 1996, the twentieth day following such quarter.
For purposes of this Agreement, increases in consolidated net income and
consolidated sales revenue shall be conclusively determined by the Committee
applying generally accepted accounting principles consistently applied.


 


5.      Termination of Option. The Option shall terminate
and be of no further force or effect upon any of the
following:


 


(i)                      the tenth annual anniversary of
the Award Date;


 


(ii)                  three months (or
such later date as the Committee may in its sole discretion specify) after
termination of Employee’s employment with the Corporation for any reason other
than for cause (as determined by the Committee in its sole discretion), or
Employee’s death or disability (as determined by the Committee in its sole
discretion);


 


(iii)               on the date of
termination of Employee’s employment with the Corporation if such termination
is for cause (as determined by the Committee in its sole discretion);


 


(iv)               twelve months after termination of
Employee’s employment with the Corporation because of Employee’s disability (as
determined by the Committee in its sole discretion); or


 


(vi)               twelve months after Employee’s death.


 


6.               Securities Laws. The Committee may from
time to time impose such conditions on the exercise of the Option as it deems
necessary or advisable to ensure that rights granted under the Plan satisfy the
requirements of applicable federal and state securities laws. Such conditions
may include, without limitation, the partial or complete suspension of the
right to exercise the Option.


 


7.               Nontransferability
of Option. The Option may not be transferred or assigned by Employee or
exercised by anyone other than Employee except pursuant to (i) Employee’s
will, (ii) applicable laws of descent and distribution, or (iii) a
QDRO.


 

















 


8.               Interpretation.
The Option and this Agreement are subject to, and the Corporation and Employee
hereby agree to be bound by, all of the provisions of the Plan. Such provisions
are incorporated herein and made a part hereof by this reference. Employee
acknowledges receiving a copy of the Plan. Capitalized terms not otherwise
defined in this Agreement shall have the meaning assigned to such terms in the
Plan.


 


IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.


 


 


	
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  Nature’s
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