Document:

Exhibit 10.16 to United Financial Corporation Form 10-K for fiscal year ended December 31, 2005

Exhibit 10.16

HERITAGE BANK

SUPPLEMENTAL
RETIREMENT AGREEMENT

	
 

	
 

	
 

	
THIS
  Supplemental Retirement Agreement (“Agreement”) is made this 1st day of
  January, 2006 by and between Heritage Bank,
  a Montana bank corporation located in Great Falls, Montana (the
  “Company”), and Jeffrey C. Mortensen (the “Executive”). This agreement is effective January 1, 2006 for vesting and
  accrual computation purposes.

INTRODUCTION

          To
encourage the Executive to remain an employee of the Company, the Company is
willing to provide salary continuation benefits to the Executive, in accordance
with the terms of this Agreement. The Company will pay the benefits from its
general assets.

AGREEMENT

          The
Executive and the Company agree as follows:

Article 1

Definitions

          1.1     Definitions.
Whenever used in this Agreement, the
following words and phrases shall have the meanings specified: 

	
 

	
 

	
 

	
 

	
1.1.1

	
“Change
  of Control” means
  the transfer of 51% or more of the Company’s outstanding voting common stock within a period of less than 6
months
  or a transfer of shares, which require regulatory approval.

	
 

	
 

	
 

	
 

	
1.1.2

	
 “Code” means the Internal
  Revenue Code of 1986, as amended.

	
 

	
 

	
 

	
          1.1.3  “Disability” means, if the Executive is
covered by a
  Company sponsored disability insurance policy, total disability as defined in
  such policy without regard to any waiting period. If the Executive is not covered by such a policy, Disability
means the
  Executive suffering a sickness, accident or injury which, in the
  judgment of a physician reasonably satisfactory to the Company, prevents the
  Executive from performing substantially all of the Executive’s normal duties
  for the

	
 

	
 

	
.

	
Company for a period of
  not less than 180 consecutive days. As a condition to any benefits, the Company may require the Executive to
submit to
  such physical or mental evaluations and tests as the Company’s Board
  of Directors reasonably deems appropriate.

	
 

	
 

	
 

	
          1.1.4     “Normal Retirement
  Age” means the Executive’s 65th birthday.

	
 

	
 

	
 

	
 

	
          1.1.5     “Normal
  Retirement Date” means the later of the Normal Retirement Age or the
  date of the Executive’s Termination of Employment.

	
 

	
 

	
 

	
          1.1.6     “Plan
  Year” means
  the plan’s accounting year of twelve consecutive months commencing on the effective date of this
  Agreement and ending on each anniversary date thereafter.

	
 

	
 

	
 

	
          1.1.7     “Termination
  of Employment” means the Executive ceasing to be employed by the Company for any reason whatsoever,
  voluntary or involuntary, other than by reason of an approved leave of absence.

Article 2

Lifetime Benefits

          2.1     Normal
Retirement Benefit . If the Executive
terminates employment on or after the Normal Retirement Age for
reasons other than death, the Company shall pay to the Executive the benefit
described in this Section 2. 1.

                    2.1.1.     Amount
of Benefit. The benefit under this
Section 2.1 is either a lump sum payment in the amount shown on Schedule A, or at the election of the
Executive, an annuity with a term acceptable
to the Executive, which shall be purchased using all available accrued amounts.
The payment or annuity purchase shall begin or be made within 60 days
from the Normal Retirement Date.

                    Notwithstanding
the preceding, if at that time of the payment of any or all benefits pursuant to this Agreement, the Executive is
a key
employee, within the meaning of Code Sections 409A(a)(2)(B)(i)
and 416(i), the payment of such benefits shall not commence in less than six
month’s following the Executive’s separation from service.

          2.2     Early
Termination Benefit. If the Executive terminates employment
before the Normal Retirement Age for reasons other than death, Disability
or Change of Control, the Company shall pay to the Executive the benefit described in this Section 2.2.

	
 

	
 

	
 

	
           2.2.1.     Amount of Benefit. The amount of the
  benefit shall be the vested amount accrued on the books of the
  employer, in accordance with Schedule A, attached. The benefit shall be the accrued balance at the date of
Termination
  of Employment.

	
 

	
 

	
 

	
           2.2.2     Payment of Benefit. The payment shall be
  in a lump sum, made within 60 days of Termination of Employment.

                    Notwithstanding
the preceding, if at that time of the payment of any or all benefits pursuant to this Agreement, the Executive is
a key
employee, within the meaning of Code Sections

	
 

	
 

	
409A(a)(2)(B)(i)
  and 416(i), the payment of such benefits shall not commence in less than six
  month’s following the
  Executive’s separation from service.

	

          2.3     Disability
Benefit. If the Executive terminates employment for Disability
prior to the Normal Retirement Age, the Company shall pay to the Executive
the benefit described in this Section 2.3. 

	
 

	
 

	
 

	
 

	
           2.3.1     Amount of Benefit. The amount of the benefit
  shall be the vested amount accrued on the books of the employer, in accordance with Schedule A, attached.
  The employee will be considered 100% vested upon a determination of
  Disability.

	
 

	
 

	
 

	
 

	
           2.3.2     Payment
  of Benefit. The payment shall be made in a lump sum within 60 days of Termination of Employment as a
result of
  disability.

	
 

	
 

	
 

	
          Not
  withstanding the preceding, if at that time of the payment of any or all
  benefits pursuant to this Agreement, the Executive is a key employee, within
  the meaning of Code Sections 409A(a)(2)(B)(i) and 416(i), the payment of such
  benefits shall not commence in less than six month’s following the Executive’s separation
  from service.

	
 

	
 

	
 

	
          2.4     Change
of
  Control Benefit. Upon a Change of Control while the Executive is
  in the active service of the Company
  resulting in termination of Executive, the Company shall pay to the Executive
  the benefit described in this Section 2.4 in lieu of any other benefit under
  this Agreement.

	
 

	
 

	
 

	
 

	
          2.4.1     Amount of Benefit. The amount of the benefit shall be
the
  vested amount accrued on the books of the
  employer, in accordance with Schedule A, attached. The employee will be
  considered 100% vested upon a change in control.

	
 

	
 

	
 

	
 

	
          2.4.2     Payment
  of Benefit. The payment shall be made in a lump sum within 60 days of Termination of Employment as a result
of a
  change in control.

                    Notwithstanding
the preceding, if at that time of the payment of any or all benefits pursuant
to this
Agreement, the Executive is a key employee, within the meaning of Code Sections
409A(a)(2)(B)(i) and 416(i), the payment of such benefits shall not commence in less than
six month’s following the Executive’s
separation from service.

          2.5     Vesting
of Benefit. The Executive shall vest 10% for every Plan Year he is employed
beginning
January 1, 2009 and 100% vested December 31, 2018. The initial effective date
for vesting is January 1, 2006.  

Article 3

Death Benefits

          3.1     Death
During Active Service. If the Executive dies while in the active service of the Company, the Company
shall pay to the Executive’s designated beneficiary the benefit described in
this Section 3.1.

	
 

	
 

	
 

	
          3.1.1.     
  Amount of Benefit. The amount
  of the benefit shall be the vested amount accrued on the books of the employer, in accordance
  with Schedule A, attached. The Executive shall become fully vested if death
  is prior to the normal retirement date.

	
 

	
 

	
 

	
          3.1.2     Payment of Benefit. The payment shall be made in a lump
sum
  within 60 days of death.

                    Notwithstanding
the preceding, if at that time of the payment of any or all benefits pursuant
to this
Agreement, the Executive is a key employee, within the meaning of Code Sections
409A(a)(2)(B)(i) and 416(i), the payment of such benefits shall not commence in less than
six month’s following the Executive’s
separation from service.

Article 4

Beneficiaries

          4.1     Beneficiary
Designations. The Executive shall designate a beneficiary
by filing a written designation with the
Company (See Schedule B). The Executive may revoke or modify the designation at
any time by filing a new designation. However, designations will only be
effective if signed by the Executive
and receipt by the Company of the designation. The Executive’s beneficiary
designation shall be deemed automatically revoked if the beneficiary
predeceases the Executive, or if the Executive names a spouse as beneficiary
and the marriage is subsequently dissolved. If the Executive dies without a
valid beneficiary designation, all payments
shall be made to the Executive’s surviving spouse, if any, and if none, to the Executive’s surviving children and
the
descendants of any deceased child by right of representation, and if no
children or descendants survive, to the Executive’s estate.

          4.2     Facility
of Payment. If a benefit is payable to a minor, to a
person declared incompetent, or to a person
incapable of handling the disposition of his or her property, the Company may
pay such benefit to the guardian,
legal representative or person having the care or custody of such minor, incompetent person or incapable person.
The
Company may require proof of incompetence, minority or guardianship as it may deem appropriate prior to
distribution of the benefit. Such distribution shall completely discharge the Company from all
liability with respect to such benefit. In the event the company
institutes legal proceeding to determine appropriate issues as to distribution
it will be entitled as a cost to recover from the distribution its reasonable
attorney fees and cost.

Article 5

General Limitations

                    Notwithstanding
any provision of this Agreement to the contrary, the Company shall not pay any benefit under this
Agreement:

          5.1     Excess
Parachute Payment. To the extent the benefit would be an excess parachute payment under Section 28OG of the
Code.

	
 

	
 

	
          5.2     Termination
far Cause. If the Company
  terminates the Executive’s employment for:

	
 

	
 

	
 

	
          5.2.1     Good
cause;

	
 

	
 

	
 

	
          5.2.2     Conviction
of a
  felony;

	
 

	
 

	
 

	
or

	
 

	
 

	
 

	
          5.2.3     Fraud,
dishonesty or
  violation of any law or Company policy committed in connection with the
  Executive’s employment and resulting in a material adverse effect on the Company. 

Article 6

Claims and Review Procedures

          6.1     Claims
Procedure. The
Company shall notify the Executive, the Executive’s beneficiary, or any other party who claims a right to an
interest under the Agreement (the “Claimant”) in writing, within sixty (30) days of his or her written
application for benefits, of his or her eligibility or ineligibility for
benefits under the Agreement. If the Company determines that the Claimant is
not eligible for benefits or full benefits,
the notice shall set forth (1) the specific reasons for such denial, (2) a
specific reference to the provisions
of the Agreement on which the denial is based, (3) a description of any additional information or material
necessary for
the claimant to perfect his or her claim, and a description of why it is needed, and (4) an explanation of
the Agreement’s claims review procedure and other appropriate
information as to the steps to be taken if the Claimant wishes to have the
claim reviewed. If the Company determines that there are special circumstances
requiring additional time to make a decision,
the Company shall notify the Claimant of the special circumstances and the date
by which a decision is expected to be made, and may extend the time for up to
an additional ninety-day period.

Article 7

Amendments and Termination

          This
Agreement may be amended or terminated only by a written agreement signed by
the Company and the Executive except that the Company, in its sole discretion, may
amend or terminate this Agreement at any time if, pursuant to legislative,
judicial or regulatory action, continuation of the Agreement would (i)
cause benefits to be taxable to the Executive prior to actual receipt, or (ii)
result in significant financial penalties or detriment to the Company (other
than the financial impact of paying the benefits). In the event of any termination of the
employee or of the Agreement, the Executive shall be treated as if the date
of termination of the Agreement were his Termination of Employment under
Section 2.2.

Article 8 

Miscellaneous 

          8.
1     Binding Effect. This Agreement shall
bind the Executive and the Company, and their beneficiaries, survivors,
executors, administrators and transferees.

          8.2     No
Guarantee
of Employment. This Agreement is not an employment policy or
contract. It does not give the Executive the
right to remain an employee of the Company, nor does it interfere with the Company’s right to discharge the
Executive. It
also does not require the Executive to remain an employee nor interfere
with the Executive’s right to terminate employment at any time. 

          8.3     Non-Transferability.
Benefits
under this Agreement cannot be sold, transferred, assigned, pledged,
attached or encumbered in any manner.

          8.4     Tax
Withholding. The Company shall withhold any taxes that are required to be withheld from the benefits provided
under
this Agreement. 

          8.5     Applicable
Law. The
Agreement and all rights hereunder shall be governed by the laws of the State of Montana, except to the extent
preempted by the laws of the United States of America.

          8.6     Unfunded
Arrangement. The Executive and beneficiary are general unsecured
creditors of
the Company for the payment of benefits under this Agreement. The benefits
represent the mere promise by the Company to pay such benefits. The rights to benefits are
not subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment, or garnishment by creditors.

          8.7     Reorganization.
The Company shall not
merge or consolidate into or with another company, or reorganize, or sell substantially all
of its assets to another company, firm, or person unless such succeeding or
continuing company, firm, or person agrees to assume and discharge the
obligations of the Company under this Agreement. Upon the occurrence of such
event, the term “Company” as used in
this Agreement shall be deemed to refer to the successor or survivor company.
In the event of a failure to expressly assume, this Agreement will be deemed
assumed.

          8.8     Entire
Agreement. This Agreement is the entire agreement between the parties and it contains all of the covenants
and agreements
between the Executive and the Company. 

          IN WITNESS WHEREOF, the Executive and a duly
authorized Company officer have signed this Agreement.

	
 

	
 

	
 

	
EXECUTIVE

	
 

	
COMPANY:

Heritage Bank  

	
 

	
 

	
 

	

	
 

	

	

	
 

	

	
Executive 

	
 

	
BY 

	
 

	
 

	
 

	
 

	
 

	
Ex
  Vice
  President

	
 

	
 

	

	
 

	
 

	
Title 

	
 

	
 

	
 

	
 

	
 

	
12-20-05

	
 

	
 

	

	
 

	
 

	
Date 

Schedule
B

Designation of Beneficiary

Supplemental Retirement Agreement

By and between Jeffrey C. Mortensen and Heritage Bank

Beneficiary
Designation:

	
 

	
 

	
 

	
MARCIE D. MARTIN (SPOUSE)

	

	
 

	
886 WIERDA WAY

	

	
 

	
MANHATTAN, MT 59741

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Signed:

	

	
 

	
Date:
  12-20, 2005

	
 

	

	
 

	
 

	

This
Beneficiary Designation only refers to that Supplemental Retirement Agreement
between Jeffrey C. Mortensen
and Heritage Bank signed on 12-20-2005.

Schedule A

Supplemental
Retirement Agreement

By and between Jeffrey C. Mortensen and Heritage Bank

Dated
January 1,2006

Benefit
Accrual

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Year

	
 

	
Annual

	
 

	
Total
  Accrual

	
 

	
Monthly

	
 

	
Vesting%

  (as of 12-31)

	
 

	
2006

	
 

	
$

	
8,391

	
 

	
 

	
$

	
8,391

	
 

	
 

	
$

	
699.25

	
 

	
 

	
0

	
 

	
2007

	
 

	
$

	
9,062

	
 

	
 

	
$

	
17,453

	
 

	
 

	
$

	
755.19

	
 

	
 

	
0

	
 

	
2008

	
 

	
$

	
9,787

	
 

	
 

	
$

	
27,241

	
 

	
 

	
$

	
815.61

	
 

	
 

	
0

	
 

	
2009

	
 

	
$

	
10,570

	
 

	
 

	
$

	
37,811

	
 

	
 

	
$

	
880.85

	
 

	
 

	
10

	
 

	
2010

	
 

	
$

	
11,416

	
 

	
 

	
$

	
49,227

	
 

	
 

	
$

	
951.32

	
 

	
 

	
20

	
 

	
2011

	
 

	
$

	
12,329

	
 

	
 

	
$

	
61,556

	
 

	
 

	
$

	
1,027.43

	
 

	
 

	
30

	
 

	
2012

	
 

	
$

	
13,315

	
 

	
 

	
$

	
74,871

	
 

	
 

	
$

	
1,109.62

	
 

	
 

	
40

	
 

	
2013

	
 

	
$

	
14,381

	
 

	
 

	
$

	
89,252

	
 

	
 

	
$

	
1,198.39

	
 

	
 

	
50

	
 

	
2014

	
 

	
$

	
15,531

	
 

	
 

	
$

	
104,783

	
 

	
 

	
$

	
1,294.26

	
 

	
 

	
60

	
 

	
2015

	
 

	
$

	
16,774

	
 

	
 

	
$

	
121,557

	
 

	
 

	
$

	
1,397.80

	
 

	
 

	
70

	
 

	
2016

	
 

	
$

	
18,116

	
 

	
 

	
$

	
139,672

	
 

	
 

	
$

	
1,509.63

	
 

	
 

	
80

	
 

	
2017

	
 

	
$

	
19,565

	
 

	
 

	
$

	
159,237

	
 

	
 

	
$

	
1,630.40

	
 

	
 

	
90

	
 

	
2018

	
 

	
$

	
21,130

	
 

	
 

	
$

	
180,367

	
 

	
 

	
$

	
1,760.83

	
 

	
 

	
100

	
 

	
2019

	
 

	
$

	
22,820

	
 

	
 

	
$

	
203,187

	
 

	
 

	
$

	
1,901.70

	
 

	
 

	
100

	
 

	
 

	
 

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
$

	
203,187Exhibit 10.6 to Nature Vision, Inc. Form 10-K for fiscal year ended December 31, 2005

Exhibit 10.6

NATURE VISION, INC.
NONSTATUTORY OPTION AGREEMENT

          This nonstatutory option agreement (this
“Agreement”) among Nature Vision, Inc., f/k/a Photo Control Corporation, a Minnesota corporation (the
“Company”) and _____________ (the “Optionee”), takes effect on ______________ (the
“Grant Date”). Subject to the terms and conditions of this Agreement, the Company hereby grants to the Optionee
an option (the “Option”) under the Company’s 2004 Stock Incentive Plan (the “Plan”) to
purchase _________ shares of Common Stock (the “Shares”).  

	
 

	
 

	
1.

	
Nonstatutory Stock Option. The
  Option shall be a Nonqualified Stock Option, as that term is used and defined
  in the Plan.

	
 

	
 

	
2.

	
Purchase Price.The
  purchase price of the Shares shall be $_____ per Share.

	
 

	
 

	
3.

	
Period of Exercise.
The Option will expire on November 3, 2009, the fifth anniversary of the
Grant Date (the “Expiration Date”).The Option may be exercised only while the
Optionee is actively engaged in providing services to the Company as an
Eligible Employee, Consultant or Director and as otherwise provided in
Section 6 of this Agreement. 

	
 

	
 

	
4.

	
Vesting Schedule.
  The Option will vest as follows:

	
 

	
 

	
 

	
 

	
 

	
(a)

	
The Option may not be exercised before November 3,
  2005.

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
_______ Shares will vest and may be purchased in
  accordance with the terms of this Agreement on November 3, 2005.

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
An additional _______ Shares will vest and may be
  purchased in accordance with the terms of this Agreement on November 3, 2006.

	
 

	
 

	
 

	
 

	
 

	
 

	
(d)

	
An additional _______Shares will vest and may be purchased in accordance with the terms of this Agreement on May
3, 2009. Notwithstanding the foregoing, the vesting and purchase schedule of the Shares described in this Section 4(d) may be
accelerated and adjusted as follows: (i) ______of the Shares will vest and may be purchased on March 31, 2006 if certain
performance targets for the Company are met in the Company’s 2005 fiscal year; and (ii) ______of the Shares will vest and may
be purchased on March 31, 2007 if certain performance targets for the Company are met in the Company’s 2006 fiscal year. The
performance targets described above shall be set by the Administrator (as defined in the Plan) and the Administrator shall
determine, in its sole and absolute discretion, whether such performance targets have been met by the Company for the applicable
fiscal year.

	
 

	
 

	
 

	
5.

	
Transferability. The Option is not transferable except by will or the laws of descent and distribution and
may only be exercised during the lifetime of the Optionee by the Optionee.

	
 

	
 

	
6.

	
Termination of Services.  Except as otherwise agreed to by the Company and the Optionee
  in writing, in the event that the Optionee ceases to provide services to the
  Company as an Eligible Employee, Consultant or Director, the Optionee may
  purchase Shares which have vested under Section 4 in the three months
  following the date of the termination, subject to the following:  

	
 

	
 

	
 

	
 

	
(a)

	
If the Optionee’s services were terminated due to the Optionee’s Retirement or Total Disability, the
Optionee may purchase Shares which have vested under Section 4 in the 12 months following the date of the termination. 

	
 

	
 

	
 

	
 

	
(b)

	
If the Optionee dies, the Option may be exercised (to the extent exercisable by the Optionee at the date of death)
by the legal representative of the Optionee or by a person who acquired the right to exercise the Option by bequest or inheritance
or by reason of the death of the Optionee, but the Option must be exercised within one year after the date of the Optionee’s
death.

	
 

	
 

	
 

	
 

	
(c)

	
If the Optionee’s services were terminated by the Company for cause, as determined by the Administrator in
his, her or its sole discretion, the Option and all of the Optionee’s rights under this Agreement shall terminate
immediately.

	
 

	
 

	
 

	
 

	
(d)

	
Notwithstanding the foregoing, in no event may any Shares be purchased after the Expiration Date. 

	
 

	
 

	
7.

	
Right to Terminate. Nothing in the Option or in any agreement entered into pursuant to the Option will
interfere with or limit in any way the right of the Company to terminate the employment or service of any Eligible Employee,
Consultant or Director at any time, nor confer upon any Eligible Employee, Consultant or Director any right to continue in the
employ or service of the Company.

	
 

	
 

	
8.

	
No Rights of Shareholders. The Optionee does not have any dividend rights, voting rights or other rights or
privileges of a shareholder with respect to any Shares covered by the Option until the date of issuance of a stock certificate for
such Shares. No adjustment shall be made for cash dividends or other rights for which the record date is before the date of such
an issuance, except as expressly provided in the Plan.

	
 

	
 

	
9.

	
Method of Exercise.  

	
 

	
 

	
 

	
 

	
(a)

	
The Option may be exercised and Shares may be purchased by the Optionee’s delivery of written notice to the
Company in the form attached to this Agreement as Exhibit A (each, an “Exercise Notice”). Each Exercise
Notice must be accompanied by (i) payment of the full purchase price of the Shares to be purchased, in such form or combination of
forms as described in this Section 9, and, if applicable, (ii) proof of the right to exercise the Option and purchase Shares if
the exercise and purchase are pursuant to the terms described in Sections 6(a) and (b) of this Agreement.
  

	
 

	
 

	
 

	
 

	
(b)

	
As soon as practicable after the Administrator has concluded, in his, her or its sole and absolute discretion that
the Optionee has fully satisfied the conditions described in Section 9(a) (and if applicable Section 12), the Company will cause
the number of such Shares so exercised under the Option to be issued and will deliver certificates representing the number of such
Shares, registered in the name of the Optionee or other such person designated by the Optionee’s Beneficiary if the Option
was exercised in accordance with Section 6(b). 

	
 

	
 

	
 

	
 

	
(c)

	
When exercising the Option and purchasing Shares, the Optionee may make payment in one of the following ways: (i)
in cash, or by check payable to the Company; (ii) if so authorized by the Administrator, by a promissory note made by the Optionee
in favor of the Company which is (A) upon such terms and conditions determined by the Administrator, (B) bearing interest at a
rate sufficient to avoid imputed interest under the Code, and (C) secured by the Shares so exercised and purchased in compliance
with applicable law (including, without limitation, state corporate law and federal margin requirements); or (ii) by shares of
Common Stock already owned by the Optionee; provided, however, that the Administrator in his, her, or its absolute
discretion may limit the Optionee’s ability to exercise the Option by delivering shares of Common Stock, and any shares of
Common Stock so delivered which were initially acquired upon exercise of the Option or another stock option agreement with the
Company must have been owned by the Optionee at least six months as of the date of delivery. 

	
 

	
 

	
10.

	
Withholding; Taxable Income. The Optionee acknowledges and understands that under the Code the Optionee
will have taxable compensation at the date of exercise of the Option equal to the difference between the purchase price under the
Option and the then Fair Market Value of the Shares purchased. The Optionee specifically agrees that as a condition to permitting
exercise, the Company may require that appropriate 

2

	
 

	
 

	
 

	
arrangements for withholding be made with the
  Optionee before the issuance of shares of Common Stock representing the
  Shares and the delivery of Company stock certificates representing the
  same.  The Administrator may permit
  the Optionee to arrange to have the appropriate number of Shares so exercised
  and purchased otherwise issuable upon exercise withheld or sold to cover such
  tax liabilities.  

	
 

	
 

	
11.

	
Changes in Capitalization, Dissolution,
  Liquidation and Reorganization.  This Agreement is subject to modification upon the occurrence
  of certain events as described in Section 8.2 of the Plan.

	
 

	
 

	
12.

	
Investment
  Representation.  The Optionee acknowledges and agrees that
  the Company may condition the exercise and purchase of any Shares pursuant to
  this Agreement on the Optionee’s delivery to the Company of the following if
  a registration statement under applicable securities laws is not in effect
  with respect to any Shares issued at the time the Optionee exercises the
  Option:  (a) an investment
  representation from the Optionee in a form acceptable to the Company’s
  counsel; (b) a restrictive legend on any certificates issued for the Shares
  in a form acceptable to the Company’s counsel; and (c) a stop order with the
  Company or its transfer agent.

	
 

	
 

	
13.

	
Incorporation of Plan.  This Agreement is made in accordance with
  the terms and conditions of the Plan, which is incorporated into this
  Agreement by reference.  Terms used
  but not otherwise defined in this Agreement have the meanings ascribed to
  them in the Plan.  In the event of a
  conflict between the provisions of the Plan and the provisions of this
  Agreement, the provisions of the Plan shall control and govern.  The Optionee acknowledges that he or she
  has read the Plan and agrees to be bound by its terms.

	
 

	
 

	
14.

	
Severability.  In the event any provision of this
  Agreement shall be held illegal or invalid for any reason, the illegality or
  invalidity shall not affect the remaining parts of this Agreement, and this
  Agreement shall be construed and enforced as if the illegal or invalid
  provision had not been included.

	
 

	
 

	
15.

	
Choice of Law and Venue.  This Agreement is made under and must be
  governed by the laws of the State of Minnesota, without regard to conflict of
  laws principles.  The Company and the
  Optionee each consent to venue any suit or action under or with regard to
  this Agreement in an appropriate court with jurisdiction in Hennepin County,
  Minnesota.

	
 

	
 

	
16.

	
Entire Agreement.  This Agreement constitutes the entire
  agreement of the parties with respect to the subject matter hereof and
  supercedes all prior understandings and statements, written and oral.

	
 

	
 

	
17.

	
Change of Control.  The Optionee and the Company
  have certain rights and owe certain obligations in connection with certain
  change of control “Events,” which are fully described in Section 8.4 of the
  Plan.  

3

          The
parties have executed this Agreement to be made effective as of the Grant Date.

	
 

	
 

	
 

	
 

	
NATURE VISION, INC.

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	
 

	

	
 

	
Title:

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
OPTIONEE 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
[SIGNATURE
  PAGE TO ____________________ NONQUALIFIED STOCK OPTION AGREEMENT]

4

EXHIBIT A
FORM OF NOTICE OF EXERCISE OF STOCK OPTION ISSUED

UNDER NATURE VISION, INC.’S 2004 STOCK INCENTIVE PLAN

	
 

	
 

	
To:

	
Secretary

	
 

	
Nature
  Vision, Inc.

	
 

	
213 NW
  Fourth Street

	
 

	
Brainerd,
  Minnesota 56401

          I
hereby exercise my Option dated ___________ (the “Option”)
to purchase _______ shares of Nature Vision, Inc.’s
(the “Company”) Common Stock at
the Option purchase price of $________ per share (the
“Shares”). Payment for the Shares is
enclosed, in the form permitted by the Option or the Company.

	
 

	
 

	
 

	
 

	
I request
  that the Shares be issued to me as follows:

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
(name in
  which the Shares should be issued)

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
(Social
  Security Number)

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
(Street and
  Number)

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
(City)          (State)     (Zip Code)

	
 

	
 

	
 

	
 

	
 

	
Dated:_____________
  , ______.

	
 

	
 

	
 

	
 

	
 

	
Signature:

	
 

	
 

	

	
 

5

FIRST
AMENDMENT TO

NATURE VISION, INC.

NONSTATUTORY OPTION AGREEMENT

          THIS
FIRST AMENDMENT (“Amendment”) is
made and entered into effective November 11, 2005, between Nature Vision,
Inc.
(the “Company”) and ______________
(“Optionee”).

RECITALS

          The
Company and Optionee are parties to a Units Option Agreement dated November
3,
2004 (the “Option”) under which Optionee received an option to
purchase _______
Shares of Common Stock of the Company at an exercise price of $5.43 per
Share,
which option expires on November 3, 2009. The Company has agreed to
accelerate
Optionee’s vesting in the Shares. 

AGREEMENT

	
 

	
 

	
 

	
 

	
 

	
 

	
In
  consideration of the foregoing, the Company and Optionee agree as
follows:

	
 

	
 

	
 

	
 

	
 

	
1.

	
Definitions. All terms which are capitalized
  and used herein will have the meaning stated in the Option.

	
 

	
 

	
 

	
 

	
 

	
2.

	
Replacement. Sections 4(c) and 4(d) of the
Option are hereby deleted in their entirety and replaced with the
following
new Section 4(c) under Section 4. Vesting Schedule: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“(c)

	
All
  remaining Shares under the Option will vest and may be purchased in
  accordance with the terms of this agreement on or after November 11, 2005
  until the Option expires on November 3, 2009.”

	
 

	
 

	
 

	
 

	
 

	
3.

	
Construction. In all other respects, the
  Option will be construed and enforced with its terms.

	
 

	
 

	
 

	
 

	
 

	
NATURE
  VISION, INC.

	
 

	
 

	
 

	 
	
 

	
By

	
 

	 
	
 

	
 

	

	 
	
 

	
Its

	
 

	 
	
 

	
 

	

	 
	
 

	
 

	
 

	 
	
 

	
OPTIONEE:

	
 

	

	
 

	
 

	
 

	 

6

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