Document:

Exhibit 10.6

WILD OATS MARKETS, INC.

2006 EQUITY INCENTIVE PLAN 

RESTRICTED STOCK AGREEMENT

THIS RESTRICTED STOCK AGREEMENT (the "Agreement") is made effective as of
_______________, 20__ (the "Effective Date"), between Wild Oats Markets, Inc., a
Delaware corporation (together with its Affiliated Corporations except where the context
requires otherwise, the "Company"), and ("Grantee"). 

RECITALS 

1. On ____________, 20__, the Board of Directors of the Company authorized
the award of incentives relating to the Company's common stock to be issued under the Wild
Oats Markets, Inc. 2006 Equity Incentive Plan (the "Plan") to specified
Employees. 

2. The purposes of the incentives are to reward each designated Employee for past service
rendered to the Company and/or to provide an incentive for new or continued service with
the Company, increase shareholder value, and advance the interests of shareholders. 

3. This Agreement sets forth the terms and conditions approved by the Committee applicable
to the award and issuance of Restricted Stock to Grantee under the Plan. Unless otherwise
defined herein, capitalized terms used in this Agreement shall have the meanings set forth
in the Plan. 

AGREEMENT 

1. Grant of Restricted Stock. Subject to the terms and
conditions of this Agreement and the Plan, the Company hereby issues to Grantee a total of
_______ shares of the Company's common stock, $0.001 par value (the "Restricted
Stock"). The Restricted Stock is issued as of the Effective Date with a Fair Market
Value, as determined under the Plan on the Effective Date, of $_______ per share.

2. Consideration. The Committee hereby issues this award in
consideration of Grantee's performance of past services to the Company, which have
contributed to the success of the Company and/or as an incentive for new or continued
service as an Employee with the Company and its Affiliates.

3. Transferability; Restrictions and Forfeiture. Restricted Stock
may not be sold, assigned, transferred by gift or otherwise, pledged, hypothecated, or
otherwise disposed of, by operation of law or otherwise, and shall be subject to
forfeiture in accordance with the provisions of Section 6 below, until Grantee becomes
vested in the Restricted Stock in accordance with Section 5. Upon vesting, the
restrictions in this Section 3 shall lapse, the Restricted Stock shall no longer be
subject to forfeiture, and Grantee may transfer shares of Restricted Stock in accordance
with applicable securities laws.

4. Enforcement of Restrictions. To enforce the restrictions set
forth in Section 3, shares of Restricted Stock may be held in electronic form or book
entry in escrow until the restrictions lapse. In the event the Company determines not to
hold the shares in electronic form or book entry, the Restricted Stock may be evidenced in
such manner as the Committee shall determine, including, but not limited to, the issuance
of share certificates in the name of Grantee. In such case, Grantee hereby appoints the
Secretary of the Company, or any other person designated by the Company as escrow agent,
as attorney-in-fact to assign and transfer to the Company any shares of Restricted Stock
forfeited by Grantee pursuant to Section 6 below, and shall, if requested by the Company,
deliver and deposit with Grantee's attorney-in-fact any share certificates representing
the Restricted Stock, together with a stock assignment duly endorsed in blank. The stock
assignment and any share certificates shall be held by Grantee's attorney-in-fact until
the restrictions set forth in Section 3 have lapsed with respect to the shares of
Restricted Stock, or until this Agreement is no longer in effect.

5. Vesting; Lapse of Restrictions. Except as provided otherwise
in this Agreement, the Restricted Stock shall vest only during Grantee's Continuous Status
as an Employee of the Company or an Affiliate from the Effective Date through the dates
described below, and the restrictions set forth in Section 3 shall lapse in their
entirety, as follows:

(a) As of ___________, 2____, the restrictions set forth in Section 3 shall lapse as to
__________ shares of Restricted Stock (__% of the aggregate number of shares); 

(b) As of ___________, 2____, the restrictions set forth in Section 3 shall lapse as to
__________ shares of Restricted Stock (__% of the aggregate number of shares);

(c) As of ___________, 2____, the restrictions set forth in Section 3 shall lapse as to
__________ shares of Restricted Stock (__% of the aggregate number of shares);

(d) As of ___________, 2____, the restrictions set forth in Section 3 shall lapse as to
__________ all remaining shares of Restricted Stock.

(e) In the event the above lapse of restriction results in the lapse of partial shares,
the number of shares effected by the lapse shall be adjusted downward to the nearest whole
share.

6. Change in Control. Upon the occurrence of a Change in
Control (as defined in Section 9(b) of the Plan), Restricted Stock covered by this
Agreement shall become fully exercisable regardless of whether all conditions of exercise
relating to length of service have been satisfied.

7. Termination of Employment; Forfeiture of Restricted Stock. 

(a) Death or Disability. If Grantee's Continuous Status as an
Employee with the Company and its Affiliates terminates on account of death or permanent
and total disability (within the meaning of Section 422(c)(6) of the Code), the Restricted
Stock shall vest in full and the restrictions set forth in Section 3 shall lapse in their
entirety.

(b) Other Terminations. If Grantee's Continuous Status as an
Employee with the Company and its Affiliates terminates on account of any reason other
than death or disability, including but not limited to voluntary resignation or
involuntary termination by the Company with or without cause prior to the lapse of
restrictions set forth in Section 5, the shares of Restricted Stock with respect to which
the restrictions have not yet lapsed shall automatically be forfeited.

(c) Manner of Forfeiture. Any shares of Restricted Stock forfeited
by Grantee pursuant to this Section 6 shall promptly be transferred to the Company without
the requirement of further notice or the payment of any consideration. Grantee, or
Grantee's attorney-in-fact, shall execute all documents and take all actions necessary or
desirable, in the sole discretion of the Committee, to promptly effectuate the transfer.
On and after the time at which any shares are required to be transferred to the Company,
Grantee shall not be permitted to exercise any of the privileges or rights of a
stockholder with respect to the shares but shall, in so far as permitted by law, treat the
Company as owner of the shares.

(d) Effect of Prohibited Transfer. If any transfer of
Restricted Stock is made or attempted to be made contrary to the terms of this Agreement,
the Company shall have the right to acquire for its own account, without the payment of
any consideration, such shares from the owner thereof or his or her transferee, at any
time before or after the prohibited transfer. In addition to any other legal or equitable
remedies it may have, the Company may enforce its rights to specific performance to the
extent permitted by law and may exercise such other equitable remedies then available to
it. The Company may refuse for any purpose to recognize any transferee who receives shares
contrary to the provisions of this Agreement as a stockholder of the Company and may
retain or recover all dividends on such shares that were paid or payable subsequent to the
date on which the prohibited transfer was made or attempted.

8. Adjustments upon Changes in Stock; Sale or Merger.

(a) Adjustment by Merger, Stock Split, Stock Dividend, Etc. If the
Company's common stock, as presently constituted, shall be changed into or exchanged for a
different number or kind of shares of stock or other securities of the Company or of
another corporation (whether by reason of merger, consolidation, recapitalization,
reclassification, stock split, spinoff, combination of shares or otherwise), or if the
number of such shares of stock shall be increased through the payment of a stock dividend,
then there shall be substituted for or added to each share of Restricted Stock, the number
and kind of shares of stock or other securities into which each outstanding share of
Restricted Stock shall be so changed or for which each such share shall be exchanged or to
which each such share shall be entitled, as the case may be. 

(b) Other Distributions and Changes in the Stock. In the event
there shall be any other change affecting the number or kind of the outstanding shares of
the Company's common stock, or any stock or other securities into which the stock shall
have been changed or for which it shall have been exchanged, then if the Committee shall,
in its sole discretion, determine that the change equitably requires an adjustment in the
shares of Restricted Stock, an adjustment shall be made in accordance with such
determination.

(c) General Adjustment Rules. All adjustments relating to stock or
securities of the Company shall be made by the Committee, whose determination in that
respect shall be final, binding and conclusive. Fractional shares resulting from any
adjustment to the Restricted Stock pursuant to this Section 9 may be settled as the
Committee shall determine. Notice of any adjustment shall be given to Grantee.

(d) Reservation of Rights. The issuance of Restricted Stock
shall not affect in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business structure, to
merge, to consolidate, to dissolve, to liquidate or to sell or transfer all or any part of
its business or assets.

9. Legends; Additional Requirements. Grantee hereby acknowledges the Company may place
legends on stock certificates issued pursuant to this Agreement as such counsel to the
Company deems necessary or appropriate in order to comply with applicable securities laws,
including, but not limited to, legends restricting the transfer of the stock. In
connection therewith and prior to the issuance of shares, Grantee may be required to
deliver to the Company such other documents and representations as may be reasonably
necessary to ensure compliance with securities laws.

10. Rights of a Stockholder. Subject to the restrictions imposed by Section 3 and the
terms of any other relevant sections hereof, Grantee shall have all of the voting,
dividend, liquidation and other rights of a stockholder with respect to the Restricted
Stock.

11. Tax Withholding Obligations. The Company's obligation to deliver shares of Common
Stock to Grantee upon the vesting of such shares shall be subject to the satisfaction of
all applicable federal, state and local income and employment tax withholding
requirements. If Grantee has not otherwise satisfied his or her tax withholding obligation
related to the vested shares by 5:00 p.m. Mountain Standard Time on the date the shares
become vested, the Company shall withhold from the vested shares that would have been
delivered a number of vested shares necessary to satisfy Grantee's withholding obligation.

Grantee may elect, subject to Company approval, to authorize the Company to satisfy any
federal, state or local tax withholding obligation by any of the following means or by a
combination of such means: 

(a) Tendering a cash payment;

(b) Authorizing the Company to withhold shares from the shares of Common Stock otherwise
issuable hereunder; or

(c) With prior consent of the Company, by delivering to the Company owned and
unencumbered shares of the Common Stock of the Company with respect to those shares free.
The Grantee does not need to make an election from restriction as of the Effective Date.

To satisfy the tender of a cash payment, Grantee may authorize the Company to withhold the
amount due from Grantee's pay during pay periods immediately preceding the date of
vesting. If vested shares are withheld to satisfy the tax withholding obligation, the
number of shares withheld will be determined as the number of shares having an aggregate
Fair Market Value equal to the minimum amount required to be withheld or such lesser
amount as may be elected by Grantee. The Company may limit the number of shares withheld
or delivered to the Company to satisfy Grantee's tax withholding obligation, if necessary,
to avoid any adverse accounting treatment for the Company. 

All elections shall be subject to the approval or disapproval by the Company. The value of
shares withheld or transferred shall be based on the Fair Market Value of the stock on the
date the amount of tax to be withheld is to be determined (the "Tax Date"). Any
election to have shares withheld or transferred for this purpose will be subject to the
following restrictions:

(i) All elections must be made prior to the Tax Date; 

(ii) All elections shall be irrevocable; or 

(iii) If Grantee is an officer or director of the Company within the meaning of Section
16 of the Exchange Act, Grantee must satisfy the requirements of Section 16 and any
applicable rules thereunder with respect to the use of stock to satisfy tax withholding
obligations. 

12. Tax Consequences. Set forth below is a brief summary as of
the date of grant of certain United States federal income tax consequences of the award of
the Restricted Stock. This summary does not address employment, specific state, local or
foreign tax consequences that may be applicable to Grantee. Grantee understands this is
only a summary, it is not complete, and the tax laws and regulations are subject to
change.

Grantee shall recognize ordinary income at the time or times described in Section 5 that
the shares of Restricted Stock are released from the restrictions in Section 3, in an
amount equal to the Fair Market Value of the shares on such date(s) less the amount paid,
if any, and the Company shall be required to collect all applicable withholding taxes with
respect to the income. 

By signing this Agreement, Grantee represents he or she has consulted with his or her
own personal tax advisor, or determined consultation is not necessary, and has not relied
on any statements or representations of the Company or any of its agents regarding tax
advice. Grantee understands and agrees he or she (and not the Company) shall be
responsible for any tax liability that may arise as a result of the transactions
contemplated by this Agreement. 

This summary does not address employment, state specific, local or foreign tax
consequences that may be applicable to Grantee. Grantee understands this summary is
necessarily incomplete and the tax laws and regulations are subject to change.

13. Notices. Any notice required or permitted to be given under
this Agreement or the Plan shall be given in writing and shall be deemed effectively given
upon receipt or, in the case of notices delivered by the Company to Grantee, five (5) days
after deposit in the United States mail, postage prepaid, addressed to Grantee at the
address currently on file with the Company or at such other address as Grantee hereafter
designates by written notice to the Company.

14. Certificates. Stock may be delivered electronically or in the form of certificates in
the discretion of the Company. Any references to certificates herein are deemed to include
electronic delivery of securities. 

15. Amendment. The Board may amend the Plan in accordance with
Section 11(e) of the Plan. The Board may also amend the terms of this Agreement; provided,
however, the rights and obligations of Grantee hereunder shall not be impaired by any such
amendment unless (a) the Company requests consent of Grantee and (b) Grantee consents in
writing.

16. Relationship to Plan. This Agreement shall not alter the terms of the Plan. If
there is a conflict between the terms of the Plan and the terms of this Agreement, the
terms of the Plan shall control. Capitalized terms used in this Agreement but not defined
herein shall have the meanings set forth in the Plan.

17. Construction; Severability. The section headings contained
herein are for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement. The invalidity or unenforceability 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 by law.

18. Waiver. Any provision contained in this Agreement may be waived, either generally or
in any particular instance, by the Committee appointed under the Plan, but only to the
extent permitted under the Plan.

19. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the
Company and Grantee and their respective heirs, executors, administrators, legal
representatives, successors and assigns.

20. Rights to Employment. Nothing contained in this Agreement or
the Plan shall be construed as giving Grantee any right to continue employment or other
service with the Company or its Affiliates or shall affect the right of the Company or an
Affiliate to terminate the employment of Grantee with or without notice and with or
without cause. 

21. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without regard to the
choice of law principles thereof.

22. Entire Agreement. Grantee acknowledges as of the date he or
she signs this Agreement, it sets forth the entire understanding between Grantee and the
Company and its Affiliates regarding the acquisition of stock in the Company and
supersedes all prior oral and written agreements on that subject [with the exception of
the following agreements only:______]. 

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates set forth
below to be effective as of the Effective Date. 

  
    
      
        
          
            
              WILD OATS MARKETS, INC.

              Company

              

              

              By:  __________________________

                                 
              [Name, Title] 

              Date:  ________________________

              

              

            

          

        

      

    

  

ACKNOWLEDGMENT AND AGREEMENT 

By signature below, I acknowledge receipt of the Restricted Stock granted hereunder and
I understand the grant is subject to the terms and conditions set forth in this Agreement
and additional terms and conditions may be imposed under the terms of the Plan. I hereby
accept the Restricted Stock awarded hereunder, subject to the terms and conditions set
forth herein. I acknowledge I have received a copy of the Plan and the Prospectus for the
Plan. I further acknowledge this award sets forth the entire understanding between me and
the Company and its Affiliates regarding acquisition of stock in the Company and
supersedes all prior oral and written agreements on that subject.

  
    
      
        
          
            
              [NAME]

              Grantee

              

              

              By:  ________________________

              Date:  _______________________

              Address:  ____________________Exhibit 10.7

WILD OATS MARKETS, INC.

2006 EQUITY INCENTIVE PLAN

INCENTIVE STOCK OPTION AGREEMENT

THIS INCENTIVE STOCK OPTION AGREEMENT is made as of this ____ day of ______________, 200__
(the "Grant Date"), between Wild Oats Markets, Inc., a Delaware corporation
(together with its Affiliated Corporations, except where the context requires otherwise,
the "Company"), and __________________________ (the "Option Holder").

1. Grant of Option. Pursuant to the Wild Oats Markets, Inc. 2006
Equity Incentive Plan (the "Plan") and subject to the terms and conditions of
this Agreement, the Company hereby grants to the Option Holder an incentive stock option
(the "Option") to purchase __________________ (________) shares of the common
stock of the Company (the "Stock") at an exercise price per share of $________
(the "Option Price"). The Option is effective as of the Grant Date. The Option
is intended to qualify as an incentive stock option under Section 422 of the Internal
Revenue Code of 1986, as amended (the "Code").

2. Requirements for Exercise; Vesting. 

(a) General. Except as provided otherwise in this Agreement,
the Option shall not become exercisable until the Option Holder has completed one full
year of continuous employment after the Grant Date. Thereafter, the Option shall become
vested and exercisable in increments, in accordance with the following schedule, so long
as the Option Holder has remained in the continuous employment of the Company from the
Grant Date until the Vesting Date:

(i) As of __________, 20__, 25% of the Shares initially subject to the Options shall
become Vested and Exercisable;

(ii) As of __________, 20__, an additional 6.25% of the Shares initially subject to the
Options shall become Vested and Exercisable;

(iii) As of __________, 20__, an additional 6.25% of the Shares initially subject to the
Options shall become Vested and Exercisable;

(iv) As of __________, 20__, an additional 6.25% of the Shares initially subject to the
Options shall become Vested and Exercisable;

(v) As of __________, 20__, an additional 6.25% of the Shares initially subject to the
Options shall become Vested and Exercisable;

(vi) As of __________, 20__, an additional 6.25% of the Shares initially subject to the
Options shall become Vested and Exercisable; 

(vii) As of __________, 20__, an additional 6.25% of the Shares initially subject to the
Options shall become Vested and Exercisable;

(viii) As of __________, 20__, an additional 6.25% of the Shares initially subject to the
Options shall become Vested and Exercisable;

(ix) As of __________, 20__, an additional 6.25% of the Shares initially subject to the
Options shall become Vested and Exercisable;

(x) As of __________, 20__, an additional 6.25% of the Shares initially subject to the
Options shall become Vested and Exercisable;

(xi) As of __________, 20__, an additional 6.25% of the Shares initially subject to the
Options shall become Vested and Exercisable;

(xii) As of __________, 20__, all remaining Shares of the grant shall become Vested and
Exercisable.

Except as set forth in Section 4 and Section 5 of this Agreement, the Option shall not be
exercisable as to any shares of Stock as to which the vesting requirements of this Section
2 have not be satisfied, regardless of the circumstances under which the Option Holder's
employment by the Company shall be terminated. The number of shares of Stock as to which
the Option may be exercised shall be cumulative, so that once the Option shall become
vested and exercisable as to any shares of Stock it shall continue to be vested and
exercisable as to such shares, until expiration or termination of the Option as provided
in Section 4 or Section 5 hereof. If at any time the number of shares of Stock that are
covered by the vested and exercisable portion of the Option includes a fractional share,
the number of shares of Stock as to which the Option shall be actually vested and
exercisable shall be rounded down to the next whole share of Stock. Legends evidencing
such restrictions may be placed on the Stock certificates.

(b) Accelerated Vesting in Certain Circumstances. The Option
Holder shall become 100% vested with respect to the entire Option, and the entire Option
shall become exercisable, upon the death or permanent and total disability (within the
meaning of Section 422(c)(6) of the Code), of the Option Holder.

3. Method for Exercising the Option. The Option may be exercised
only in accordance with rules established by the Company.

The Company intends to register the shares of Stock subject to this Option and this Option
on a Form S-8 Registration Statement (or any successor or replacement Form).
Notwithstanding such registration, the Company may require the Option Holder, as a
condition of exercise of this Option, to give written assurance in substance and form
satisfactory to the Company and its counsel to the effect that the Option Holder is
acquiring the Stock for his own account for investment and not with any present intention
of selling or otherwise distributing the same, and to such other effects as the Company
deems necessary or appropriate in order to comply with federal and state securities laws.

The purchase of such Stock shall take place at the address of the Company set forth above
upon delivery of a notice of exercise that specifies the number of shares with respect to
which the Option is being exercised and payment of the Option Price for the Stock in full
(i) in cash or by check, bank draft or money order payable to the order of the Company, or
(ii) by delivering shares of Stock having a Fair Market Value on the date of payment equal
to the amount of the Option Price, but only to the extent such exercise of the Option
would not result in an accounting compensation charge with respect to the shares used to
pay the Option Price unless otherwise determined by the Committee, or (3) a combination of
the foregoing. For purposes of this Option, the Fair Market Value of any shares of Stock
delivered in payment of the Option Price upon exercise of the Option shall be the Fair
Market Value on the day prior to the remittance of the Stock; the exercise date shall be
the day of delivery of the certificates for the Stock used as payment of the Option Price.
In addition to the foregoing, the Option may be exercised by a broker-dealer acting on
behalf of the Option Holder if (A) the broker-dealer has received from the Option Holder
or the Company a notice evidencing the exercise of the Option and instructions signed by
the Option Holder requesting the Company to deliver the shares of Stock subject to the
Option to the broker-dealer on behalf of the Option Holder and specifying the account into
which such shares should be deposited, (B) adequate provision has been made with respect
to the payment of any withholding taxes due upon such exercise, and (C) the broker-dealer
and the Option Holder have otherwise complied with Section 220.3(e)(4) of Regulation T, 12
CFR, Part 220 and any successor rules and regulations applicable to such exercise. If,
upon exercise of an Option, the Option Price is paid by a broker's transaction as provided
in the preceding sentence, Fair Market Value, for purposes of the exercise, shall be the
price at which the Stock is sold by the broker. If the Option Price is paid by means of a
broker's transaction described in the preceding sentences, in whole or in part, the
closing of the purchase of the Stock under the Option shall take place (and the Option
shall be treated as exercised) on the date on which, and only if, the sale of Stock upon
which the broker's transaction was based has been closed and settled, unless the Option
Holder makes an irrevocable written election, at the time of exercise of the Option, to
have the exercise treated as fully effective for all purposes upon receipt of the exercise
price by the Company regardless of whether or not the sale of the Common Stock by the
broker is closed and settled.

4. Adjustment of and Changes in the Common Stock. The Option shall
be adjusted as provided in Section 11 of the Plan; provided, that no adjustment shall be
contrary to Code Section 409A or shall be effected in a manner that would subject the
Option Holder to taxes and penalties under Code Section 409A.

5. Change in Control.

(a) Full Vesting; Termination; Assumption or Substitution. Upon
the occurrence of a Change in Control (as defined in Section 9(b) of the Plan), the Option
shall become fully exercisable regardless of whether all conditions of exercise relating
to length of service have been satisfied. The Committee may also provide for the
assumption or substitution of the Option by the surviving entity as described in
subsection 5(b) and make any other provision for the Option as the Committee deems
appropriate in its sole discretion. The Committee may, as it determines in its sole
discretion, provide that any portion of the Option that is outstanding at the time the
Change in Control occurs shall expire at such time so long as the Option Holder is
provided with notice no earlier than 20 days than the later of (i) the date in which the
Option becomes exercisable or (ii) the date in which the transaction occurs.

(b) Assumption or Substitution. The Company, or the successor
or purchaser, as the case may be, may make adequate provision for the assumption of the
Option or the substitution of a new option for the outstanding Option on terms comparable
to the Option.

(c) Potential Consequences on Acceleration. In the event the
Option becomes fully vested, then all or a portion of the Stock subject to the Option may
become, by operation of law, a non-qualified stock option and will be treated as such by
the Company for all purposes.

6. Expiration and Termination of the Option. The Option shall
expire on the tenth (10th) anniversary of the Grant Date, (the period from the Grant Date
to the expiration date is the "Option Period").

(a) Termination for Cause or Termination within Six Months after Grant.
If the Option Holder's employment by the Company is terminated for any reason other than
death or Disability within six (6) months after the Grant Date of the grant or for
"cause" within the Option Period, the entire Option, whether or not vested,
shall become void, shall be forfeited and shall terminate immediately upon the termination
of employment of the Option Holder. For this purpose, "cause" shall mean a gross
violation, as determined by the Company, of the Company's established policies and
procedures or such other cause as the Board in good faith reasonably determines provides
cause for the discharge of the Option Holder.

(b) Termination on Account of Disability. If the Option Holder
becomes Disabled, the Option may be exercised by the Option Holder within one year
following the Option Holder's termination of services on account of Disability (provided
that such exercise must occur within the Option Period), but not thereafter. In any such
case, the Option may be exercised only as to the shares as to which the Option had become
exercisable on or before the date of the Option Holder's termination of services.

(c) Death. If the Option Holder dies during the Option Period
while still employed by or performing services for the Company or within the one year
period referred to in (b) above or the three (3) month period referred to in (d) below,
the Option may be exercised by those entitled to do so under the Option Holder's will or
by the laws of descent and distribution within one year following the Option Holder's
death (provided that such exercise must occur within the Option Period), but not
thereafter. In any such case, the Option may be exercised only as to the shares as to
which the Option had become exercisable on or before the date of the Option Holder's
death.

(d) Termination for Other Reasons. If the services of the Option
Holder are terminated (which for this purpose means the Option Holder is no longer
employed by the Company or performing services for the Company) within the Option Period
for any reason other than cause, Disability, or death and such termination occurs more
than six (6) months after the Grant Date of the grant, the Option may be exercised by the
Option Holder within three (3) months following the date of such termination (provided
such exercise must occur within the Option Period), but not thereafter. In any such case,
the Option may be exercised only as to the shares as to which the Option had become
exercisable on or before the date of termination of services.

7. Transferability.

(a) No Lifetime Transfers. The Option may not be transferred
except by will or pursuant to the laws of descent and distribution, and it shall be
exercisable during the Option Holder's life only by him, or in the event of Disability or
incapacity, by his guardian or legal representative, and after his death, only by those
entitled to do so under his will or the applicable laws of descent and distribution. Any
attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the Option or any
right or privilege granted hereunder, or upon the levy of any attachment or similar
process upon the rights and privileges herein conferred, the Option and the rights and
privileges hereunder shall become immediately null and void.

8. Limitation of Rights. The Option Holder or his successor
shall have no rights as a stockholder with respect to the shares of Stock covered by this
Option until the Option Holder or his successors become the holder of record of such
shares. 

9. Stock Reserve. The Company shall at all times during the term
of this Agreement reserve and keep available such number of shares of Stock as will be
sufficient to satisfy the requirements of this Agreement, and the Company shall pay all
original issue taxes (if any) on the exercise of the Option, and all other fees and
expenses necessarily incurred by the Company in connection therewith. 

10. Withholding. In the event the exercise of the Option gives
rise to withholding, the Option Holder shall make appropriate arrangements with the
Company to provide for the amount of additional income and other tax withholding
applicable to the exercise of the Option.

11. Miscellaneous.

(a) Notices. Any notice required or permitted to be given under this Agreement shall be in
writing and shall be given by first class registered or certified mail, postage prepaid,
or by personal delivery to the appropriate party, addressed:

(i) If to the Company, to Wild Oats Markets, Inc., Attention: Corporate Secretary, 3375
Mitchell Lane, Boulder, CO 80301-2294, or at such other address as may have been furnished
to the Option Holder in writing by the Company; or

(ii) If to the Option Holder, to the Option Holder at Wild Oats Markets, Inc., Attention:
Corporate Secretary, 3375 Mitchell Lane, Boulder, CO 80301-2294, or at other address as
may have been furnished to the Company by the Option Holder. 

Any such notice shall be deemed to have been given as of the second day after deposit in
the United States mails, postage prepaid, properly addressed as set forth above, in the
case of mailed notice, or as of the date delivered in the case of personal delivery.

(b) Certificates. Stock may be delivered electronically or in the
form of certificates in the discretion of the Company. Any references to certificates
herein are deemed to include electronic delivery of securities.

(c) Amendment. Except as provided herein, this Agreement may not
be amended or otherwise modified unless evidenced in writing and signed by the Company and
the Option Holder.

(d) Defined Terms. Capitalized terms shall have the meaning set
forth in the Plan or herein, as the case may be.

(e) Compliance with Securities Laws. This Agreement shall be
subject to the requirement that if at any time counsel to the Company shall determine the
listing, registration or qualification of the shares of Stock subject to the Option upon
any securities exchange or under any state or federal law, or the consent or approval of
any governmental or regulatory body, is necessary as a condition of, or in connection
with, the issuance or purchase of such shares thereunder, the Option may not be exercised
in whole or in part unless such listing, registration, qualification, consent or approval
shall have been effected or obtained on conditions acceptable to the Committee. Nothing
herein shall be deemed to require the Company to apply for or obtain such listing,
registration or qualification.

(f) Construction; Severability. The section headings contained
herein are for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement. The invalidity or unenforceability 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 by law.

(g) Waiver. Any provision contained in this Agreement may be
waived, either generally or in any particular instance, by the Committee appointed under
the Plan, but only to the extent permitted under the Plan.

(h) Binding Effect. This Agreement shall be binding upon and inure
to the benefit of the Company and the Option Holder and their respective heirs, executors,
administrators, legal representatives, successors and assigns.

(i) Rights to Employment. Nothing contained in this Agreement
shall be construed as giving the Option Holder any right to be retained in the employ of
the Company and this Agreement is limited solely to governing the rights and obligations
of the Option Holder with respect to the Stock and the Option.

(j) Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware.

[SIGNATURE PAGE FOLLOWS]

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

WILD OATS MARKETS, INC.

By_____________________________________

_____________________________

 

OPTION HOLDER

________________________________________

___________________

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