**Exhibit 10.6**

**HARBINGER GROUP INC.**

**2011 OMNIBUS EQUITY AWARD PLAN**

**FORM OF EMPLOYEE NONQUALIFIED OPTION AWARD AGREEMENT**

THIS NONQUALIFIED OPTION AWARD AGREEMENT (the “Agreement”), is made, effective as of **[insert date]**(the“Date of Grant”), between Harbinger Group Inc. (the “Company”), and **[insert name]**(the “Participant”). 

**R E C I T A L S:**

WHEREAS, the Company has adopted the HarbingerGroup Inc. 2011 Omnibus Equity Award Plan (the “Plan”), pursuant to which Options may be granted; and 

WHEREAS, the Board of Directors of the Company has determined that it is in the best interests of the Company and its stockholders togrant to the Participant an Option as provided herein and subject to the terms set forth herein. 

NOW THEREFORE, for and inconsideration of the premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns,hereby agree as follows: 

**1. Grant of Option.**

(a) Grant. The Company hereby grants to the Participant an Option (the “Option”) to purchase **[insert number]**shares of Common Stock (such shares, the “OptionShares”), on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan. The Option is not intended to qualify as an Incentive Stock Option. The Exercise Price, being the price at which the Participant shallbe entitled to purchase the Option Shares upon the exercise of all or any portion of the Option, shall be $**[insert price]**per Option Share. 

(b) Incorporation by Reference, Etc. The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed inaccordance with the provisions of the Plan and any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. In the event of a conflict between the Plan and this Agreement, the terms and conditionsof the Plan shall govern. The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Participant and hislegal representative in respect of any questions arising under the Plan or this Agreement. 

**2. Vesting.**Except as may otherwise be provided herein (or as otherwise provided in an employment,consulting or other written agreement between the Participant and the Company or any of its Subsidiaries), subject to the Participant’s continued employment with the Company or a Subsidiary, the Option shall become vested and exercisable withrespect to [**insert percentage**] (XX%) of the Option Shares on each of the [**insert applicable anniversaries**] anniversaries of the [**insert vesting commencement date**] (each such date, a “Vesting Date”). Anyfractional Option Shares resulting from the application of the vesting schedule shall be aggregated and the Option Shares resulting from such aggregation shall vest on the final Vesting Date. 

**3. Transferability**. The Option may not be assigned, alienated, pledged, attached, sold, gifted, loaned or otherwise transferred or encumbered by the Participant other than by will or by the laws ofdescent and distribution, pursuant to a qualified domestic relations order or as otherwise permitted under of the Plan. In the event of the Participant’s death, the Option shall thereafter be exercisable (to the extent otherwise exercisablehereunder) only by the Participant’s executors or administrators. In addition, the Participant agrees to comply with any written holding requirement policy adopted by the Company for employees. ****

**4. Termination of Employment.** Except as otherwise provided below (or as otherwise provided in an employment, consulting or other written agreementbetween the Participant and the Company or any of its Subsidiaries), if the Participant’s employment or service with the Company or any Subsidiary, as applicable, terminates for any reason, then the unvested portion of the Option shall becancelled immediately and the Participant shall immediately forfeit any rights to the Option Shares subject to such unvested portion. ****

**5. Expiration.**

(a) Inno event shall all or any portion of the Option be exercisable after the tenth anniversary of the Date of Grant (the “Option Period”). 

(b) Except as otherwise provided in an employment, consulting or other written agreement between the Participant and the Company or any of its Subsidiaries, if the Participant’s employment or servicewith the Company and all Subsidiaries is terminated (i) by the Company or its Subsidiaries without Cause the Option shall expire on the earlier of the last day of the Option Period or the date that is 90 days after the date of such termination,or (ii) by the Participant for any reason other than at a time when grounds to terminate the Participant’s employment for Cause exist, the Option shall expire on the earlier of the last day of the Option Period or the date that is 30 daysafter the date of such termination. In the event of a termination described in this subsection (b), the Option shall remain exercisable by the Participant until its expiration only to the extent the Option was exercisable at the time of suchtermination. 

(c) Except as otherwise provided in an employment, consulting or other written agreement between the Participantand the Company or any of its Subsidiaries, if the Participant dies or is terminated on account of Disability prior to the end of the Option Period and while still in the employ or service of the Company or a Subsidiary, the Option shall remainexercisable by the Participant or his or her beneficiary, as applicable, until the earlier of the last day of the Option Period or the date that is one year after the date of death or termination on account of Disability of the Participant, asapplicable. In the event of a termination described in this subsection (c), the Option shall remain exercisable by the Participant until its expiration only to the extent the Option was exercisable at the time of such termination. 

 
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(d) If the Participant ceases employment or service of the Company or any of itsSubsidiaries due to a termination for Cause or a termination by the Participant for any reason at a time when grounds to terminate the Participant’s employment for Cause exist, the Option (including any vested portion of the Option) shallexpire immediately upon such cessation of employment or service. 

**6. Method of Exercise.**

(a) Options which have become exercisable may be exercised by delivery of a duly executed written notice of exercise to the Company atits principal business office using such form(s) as may be required from time to time by the Company. The Participant may obtain such form(s) by contacting the Acting General Counsel at the address set forth in Section 9(a) below. 

(b) No Option Shares shall be delivered pursuant to any exercise of the Option until payment in full of the Exercise Price therefor isreceived by the Company in accordance with Section 7(d) of the Plan and the Participant has paid to the Company an amount equal to any federal, state, local and non-U.S. income and employment taxes required to be withheld. 

(c) Subject to applicable law, the Exercise Price and applicable tax withholding shall be payable by (i) cash or cash equivalents(including certified check or bank check or wire transfer of immediately available funds), (ii) if approved by the Committee, tendering previously acquired Common Stock (either actually or by attestation) valued at their then Fair Market Value,(iii) if approved by the Committee, a “net exercise” procedure effected by withholding the minimum number of Option Shares otherwise deliverable in respect of an Option that are needed to pay for the Exercise Price and all applicablerequired withholding taxes, and (iv) such other method which is approved by the Committee. Any fractional shares of Common Stock shall be settled in cash. 

**7. Rights as a Shareholder.**The Participant shall not be deemed for any purpose to be the owner of any Option Shares unless, until and to the extent that (i) this Option shall have beenexercised pursuant to its terms, (ii) the Company shall have issued and delivered to the Participant the Option Shares, and (iii) the Participant’s name shall have been entered as a shareholder of record with respect to such OptionShares on the books of the Company. 

**8. Tax Withholding.** The exercise of the Option (or any portion thereof) shall be subject to theParticipant satisfying any applicable federal, state, local and foreign tax withholding obligations. The Company shall have the power and the right to deduct or withhold from all amounts payable to the Participant in connection with the Option orotherwise, or require the Participant to remit to the Company, an amount sufficient to satisfy any applicable taxes required by law. In addition, the Committee may, in its sole discretion, permit the Participant to satisfy, in whole or in part, theforegoing withholding liability by (A) the delivery of shares of Common Stock (which are not subject to any pledge or other security interest and which would not result in adverse accounting to the Company) owned by the Participant having aFair Market Value 

 
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equal to such withholding liability or (B) having the Company withhold from the number of Option Shares otherwise issuable or deliverable pursuant to the exercise of the Option Shares anumber of shares with a Fair Market Value equal to such withholding liability (but no more than the minimum required statutory withholding liability). The obligations of the Company under this Agreement will be conditional on such payment orarrangements, and the Company will, to the extent permitted by law, have the right to deduct any such withholding taxes from any payment of any kind otherwise due to the Participant. 

**9. Miscellaneous.**

(a) Notices. All notices, demands and othercommunications provided for or permitted hereunder shall be made in writing and shall be by registered or certified first-class mail, return receipt requested, telecopier, courier service or personal delivery: 

if to the Company: 

 
Harbinger Group Inc.450 Park Avenue30th FloorNew York, NY, 10022Facsimile:Attention: Acting General Counsel
if to the Participant, at the Participant’s last known address on file with the Company. 

All such notices, demands and other communications shall be deemed to have been duly given when delivered by hand, if personally delivered; whendelivered by courier, if delivered by commercial courier service; five business days after being deposited in the mail, postage prepaid, if mailed; and when receipt is mechanically acknowledged, if telecopied. 

(b) Clawback/Forfeiture. If the Participant receives any amount in excess of what the Participant should have received withrespect to the Option Shares for any reason (including without limitation by reason of a financial restatement, mistake in calculations or other administrative error), then the Participant shall be required to repay any such excess amount to theCompany upon 30 days prior written demand by the Committee. To the extent required by applicable law (including without limitation Section 304 of the Sarbanes Oxley Act and Section 954 of the Dodd Frank Act), the Option Shares shall besubject to any required clawback, forfeiture or similar requirement. 

(c) Severability. The invalidity orunenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted bylaw. 

(d) No Rights to Service. Nothing contained in this Agreement shall be construed as giving the Participant anyright to be retained, in any position as an employee, consultant or director of the Company or its Affiliates or shall interfere with or restrict in any way the rights of the Company or its Affiliates, which are hereby expressly reserved, to remove,terminate or discharge the Participant at any time for any reason whatsoever. 

 
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(e) Bound by Plan. By signing this Agreement, the Participant acknowledges that hehas received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan. 

(f) Beneficiary. The Participant may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revokesuch designation. If no designated beneficiary survives the Participant, the executor or administrator of the Participant’s estate shall be deemed to be the Participant’s beneficiary. 

(g) Successors. The terms of this Agreement shall be binding upon and inure to the benefit of the Company, its successors andassigns, and the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant. 

(h)Section 409A. The Option is intended to be exempt from or comply with Section 409A of the Code and this Agreement shall be interpreted consistent therewith. This Agreement is subject to Section 15(t) of the Plan. 

(i) Electronic Delivery. By executing this Agreement, the Participant hereby consents to the electronic delivery of prospectuses,annual reports and other information required to be delivered by Securities and Exchange Commission rules. This consent may be revoked in writing by the Participant at any time upon three business days’ notice to the Company, in which casesubsequent prospectuses, annual reports and other information will be delivered in hard copy to the Participant. 

(j)Securities Laws. The Participant agrees that the obligation of the Company to issue Option Shares shall also be subject, as conditions precedent, to compliance with applicable provisions of the Securities Act of 1933, as amended, theSecurities Exchange Act of 1934, as amended, state securities or corporation laws, rules and regulations under any of the foregoing and applicable requirements of any securities exchange upon which the Company’s securities shall be listed.

(k) Entire Agreement. This Agreement and the Plan contain the entire agreement and understanding of the parties heretowith respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto. No change, modification or waiver of any provision of this Agreement shall be valid unless the same bein writing and signed by the parties hereto. 

(l) Governing Law. This Agreement shall be construed and interpreted inaccordance with the laws of the State of Delaware without regard to principles of conflicts of law thereof, or principals of conflicts of laws of any other jurisdiction which could cause the application of the laws of any jurisdiction other than theState of Delaware. 

 
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(m) Headings. The headings of the Sections hereof are provided for convenience onlyand are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement. 

(n)Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 

IN WITNESS WHEREOF, the Company and the Participant have executed this Agreement as set forth below. 

 
Harbinger Group Inc. By:  Title:   [insert name of Participant]
 
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