Salton, Inc. Stock Option Agreement for Employees

Summary

This agreement is between Salton, Inc. and an employee, granting the employee the right to purchase company stock at a set price under the company's Stock Option Plan. The agreement specifies whether the options are incentive or non-qualified, outlines vesting schedules, and includes SEC trading restrictions for employees with access to material non-public information. The grant is not complete until the employee signs and returns the agreement. The document also provides tax guidance and reporting requirements for stock sales within certain IRS-defined periods.

EX-10.39 2 c98782exv10w39.txt FORM OF STOCK OPTION AGREEMENT EXHIBIT 10.39 FORM OF STOCK OPTION AGREEMENT _______, 20__ A Notice of Grant of Stock Options is attached which references options granted to you on ____, 2005. [They are considered non-qualified stock options whole grant is intended not to fall under the provisions of Section 422 of the Internal Revenue Code of 1986, as amended. They are considered incentive stock options within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended. Please contact your personal tax advisor for appropriate tax treatment of these options. If you sell stock acquired through these stock options within the "holding period" as defined by IRS regulations, the Company is required to report the ordinary income portion on your W-2 or a Form 1099. In that event, a form is enclosed entitled "Notice of Sale of Stock Purchased with Stock Options" which must be provided to the payroll department.] Based on Security and Exchange Commission's ("SEC") rules and regulations, the Company has adopted certain policies regarding purchasing common stock of Salton, Inc., selling common stock or any other transaction that is deemed trading under the rules and regulations of the SEC. Any Manager or employee that has the ability to obtain material non-public information about the company, cannot sell or buy common stock of the company two weeks prior to an earnings release or 48 hours after such event. Please sign and return the ORIGINAL COPY of your Notice of Grant of Stock Options to Linda Kaiser, c/o Human Resources Department, 1801 N. Stadium Boulevard, Columbia, MO 65202 in the envelope provided. You should retain a copy for your files. The granting of the option will not be considered complete until a signed copy is received. Corporate Controller Enclosures NOTICE OF GRANT OF STOCK OPTIONS AND OPTION AGREEMENT SALTON, INC. ID: 363777824 1955 FIELD COURT LAKE FOREST, IL 60045 NAME OPTION NUMBER: ADDRESS PLAN: CITY, STATE, ZIP ID: Effective (date), you have been granted a(n) (Incentive Stock Option) (or Non-Qualified Option) to buy (number) shares of Salton, Inc. (the Company) stock at (option price) per share. The total option price of the shares granted is $0.00 Shares in each period will become fully vested on the date shown.

By your signature and the Company's signature below, you and the Company agree that these options are granted under and governed by the terms and conditions of the Company's Stock Option Plan as amended and the Option Agreement, all of which are attached and made a part of this document. Salton, Inc. Date: (EMPLOYEE NAME) Date: