GEORGIA GULF CORP /DE/
EX-10.3
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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;10.3</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="FormofNonqualifiedStockOptionAgreem"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">FORM&nbsp;OF<br>
NONQUALIFIED STOCK OPTION AGREEMENT<br>
NON-EMPLOYEE DIRECTOR</font></b></a></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This AGREEMENT (the
&#147;Agreement&#148;) is made as of _____ __, 200__ (the &#147;Date of Grant&#148;) by and between
GEORGIA GULF CORPORATION, a Delaware corporation (the &#147;Company&#148;), and ________________________
(&#147;Optionee&#148;).</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">Grant of Stock Option</font></b>.&nbsp;&nbsp; Subject to and
upon the terms, conditions, and restrictions set forth in this Agreement and in
the Company&#146;s 2002 Equity and Performance Incentive Plan (the &#147;Plan&#148;), the
Company hereby grants to the Optionee as of the Date of Grant a stock option
(the &#147;Option&#148;) to purchase ______ shares of the Company&#146;s Common Stock (the &#147;Optioned
Shares&#148;). The Option may be exercised from time to time in accordance with the
terms of this Agreement. The price at which the Optioned Shares may be
purchased pursuant to this Option shall be $______ per share subject to
adjustment as hereinafter provided (the &#147;Option Price&#148;). The Option is intended
to be a nonqualified stock option and shall not be treated as an &#147;incentive
stock option&#148; within the meaning of that term under Section&nbsp;422 of the
Code, or any successor provision thereto.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">Term of Option</font></b>.&nbsp;&nbsp; The term of the
Option shall commence on the Date of Grant and, unless earlier terminated in
accordance with Section&nbsp;6 hereof, shall expire ten (10)&nbsp;years from
the Date of Grant.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">Right to Exercise</font></b>.&nbsp;&nbsp; Subject to
expiration or earlier termination, 100% of the Option shall become exercisable
on the first anniversary of the Date of Grant. To the extent the Option is
exercisable, it may be exercised in whole or in part. In no event shall the
Optionee be entitled to acquire a fraction of one Optioned Share pursuant to
this Option. The Optionee shall be entitled to the privileges of ownership with
respect to Optioned Shares purchased and delivered to him upon the exercise of
all or part of this Option.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">Transferability</font></b>.&nbsp;&nbsp; The Option granted
hereby shall be transferable by an Option, without payment of consideration
therefor by the transferee, to any one or more members of the Optionee&#146;s
Immediate Family (or to one or more trusts established solely for the benefit
of one or more members of the Optionee&#146;s Immediate Family or to one or more
partnerships in which the only partners are members of the Participant&#146;s
Immediately Family); provided, however, that (i)&nbsp;no such transfer shall be
effective unless reasonable prior notice thereof is delivered to the Company
and such transfer is thereafter effected in accordance with any terms and
conditions that shall have been made applicable thereto by the Company or the
Board and (ii)&nbsp;any such transferee shall be subject to the same terms and
conditions hereunder as the Optionee.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">Notice of Exercise; Payment</font></b>.</font></p>

<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160; To the
extent then exercisable, the Option may be exercised by written notice to the
Company stating the number of Optioned Shares for which the Option is being
exercised and the intended manner of payment. Payment equal to the aggregate
Option Price of the Optioned Shares being exercised shall be tendered in full
with the notice of exercise to the Company in cash in the form of currency or
check or other cash equivalent acceptable to the Company. The requirement of
payment in cash shall be deemed satisfied if the Optionee makes arrangements
that are satisfactory to the Company with a broker that is a member of the
National Association of Securities Dealers,&nbsp;Inc. to sell a sufficient
number of Optioned Shares which are being purchased pursuant to the exercise,
so that the net proceeds of the sale transaction will at least equal the amount
of the aggregate Option Price, and pursuant to which the broker undertakes to
deliver to the Company the amount of the aggregate Option Price not later than
the date on which the sale transaction will settle in the ordinary course of
business.</font></p>

<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160; The
Optionee may also tender the Option Price by (i)&nbsp;the actual or
constructive transfer to the Company of nonforfeitable, nonrestricted Common
Shares that have been owned by the Optionee for more than six months prior to
the date of exercise, or (ii)&nbsp;by any combination of the foregoing </font></p>

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<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">methods of payment,
including a partial tender in cash and a partial tender in nonforfeitable,
nonrestricted Common Shares.</font></p>

<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160; Within ten
(10)&nbsp;days after notice, the Company shall direct the due issuance of the
Optioned Shares so purchased.</font></p>

<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160; Nonforfeitable,
nonrestricted Common Shares that are transferred by the Optionee in payment of
all or any part of the Option Price shall be valued on the basis of their
Market Value per Share as defined in the Plan.</font></p>

<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160; As a
further condition precedent to the exercise of this Option, the Optionee shall
comply with all regulations and the requirements of any regulatory authority
having control of, or supervision over, the issuance of Common Stock and in
connection therewith shall execute any documents which the Compensation
Committee shall in its sole discretion deem necessary or advisable. The date of
such notice shall be the exercise date.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:6.0pt 0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160; <b><font style="font-weight:bold;">Termination of Agreement</font></b>.</font>&nbsp;&nbsp; <font face="Times New Roman">The
Agreement and the Option granted hereby shall terminate automatically and
without further notice on the earliest of the following dates:</font></p>

<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160; One (1)&nbsp;year
after the Optionee&#146;s death (if the Optionee dies while serving on the Board);</font></p>

<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160; One (1)&nbsp;year
after the date of the Optionee&#146;s permanent and total disability that is
confirmed by a licensed physician&#146;s statement if the Optionee becomes
permanently and totally disabled while serving on the Board;</font></p>

<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160; 60 days
after the Optionee&#146;s termination from service on the Board, for any reason
other than as described in this Section&nbsp;6 hereof; or</font></p>

<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160; Ten (10)&nbsp;years
from the Date of Grant.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event that the Optionee&#146;s termination from
service on the Board for cause (as determined by the Board), the Agreement shall
terminate at the time of such termination notwithstanding any other provision
of this Agreement.</font></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement
shall not be exercisable for any number of Optioned Shares in excess of the
number of Optioned Shares for which this Agreement is then exercisable,
pursuant to Sections 3 and 7 hereof, on the date of termination from service on
the Board. For the purposes of this Agreement, the continuous service of the
Optionee with the Company shall not be deemed to have been interrupted if an
Optionee subsequently becomes an employee of the Company or a Subsidiary while
remaining a member of the Board.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">Acceleration of Option</font></b>.&nbsp;&nbsp; Notwithstanding
Section&nbsp;3, but subject to earlier termination, the Option granted hereby
shall become immediately exercisable in full in the event of a Change of
Control.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">Compliance with Law</font></b>.&nbsp;&nbsp; The Company
shall make reasonable efforts to comply with all applicable federal and state
securities laws; provided, however, notwithstanding any other provision of this
Agreement, the Option shall not be exercisable if the exercise thereof would
result in a violation of any such law.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">Adjustments</font></b>.&nbsp;&nbsp; The Committee may make
or provide for such adjustments in the number of Optioned Shares covered by
this Option, in the Option Price applicable to such Option, and in the kind of
shares covered thereby, as the Compensation Committee may determine is
equitably required to prevent dilution or enlargement of the Optionee&#146;s rights
that otherwise would result from (a)&nbsp;any stock dividend, stock split,
combination of shares, recapitalization, or other change in the capital
structure of the Company, (b)&nbsp;any merger, consolidation, spin-off,
split-off, spin-out, split-up, reorganization, partial or complete liquidation,
or other distribution of assets or issuance of rights or warrants to purchase
securities, or (c)&nbsp;any other corporate transaction or event having an
effect similar to any of the foregoing. In the event of any such transaction or
event, the Compensation Committee may provide in substitution for this Option </font></p>

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<p style="margin:0pt 0pt 6.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">such alternative
consideration as it may determine to be equitable in the circumstances and may
require in connection therewith the surrender of this Option.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160; <b><font style="font-weight:bold;">Amendments</font></b>.&nbsp;&nbsp; Any amendment to the Plan
shall be deemed to be an amendment to this Agreement to the extent that the
amendment is applicable hereto; provided, however, that no amendment shall
adversely affect the rights of the Optionee under this Agreement without the Optionee&#146;s
consent.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.&#160;&#160; <b><font style="font-weight:bold;">Severability</font></b>.&nbsp;&nbsp; In the event that one
or more of the provisions of this Agreement shall be invalidated for any reason
by a court of competent jurisdiction, any provision so invalidated shall be
deemed to be separable from the other provisions hereof, and the remaining
provisions hereof shall continue to be valid and fully enforceable.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160; <b><font style="font-weight:bold;">Relation to Plan</font></b>.&nbsp;&nbsp; This Agreement is
subject to the terms and conditions of the Plan. In the event of any
inconsistent provisions between this Agreement and the Plan, the Plan shall
govern. Capitalized terms used herein without definition shall have the
meanings assigned to them in the Plan. The Board acting pursuant to the Plan,
as constituted from time to time, shall, except as expressly provided otherwise
herein, have the right to determine any questions which arise in connection
with this option or its exercise.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160; <b><font style="font-weight:bold;">Successors and Assigns</font></b>.&nbsp;&nbsp; The
provisions of this Agreement shall inure to the benefit of, and be binding
upon, the successors, administrators, heirs, legal representatives and assigns
of the Optionee, and the successors and assigns of the Company.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160; <b><font style="font-weight:bold;">Governing Law</font></b>.&nbsp;&nbsp; The interpretation,
performance, and enforcement of this Agreement shall be governed by the laws of
the State of Georgia, without giving effect to the principles of conflict of
laws thereof.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160; <b><font style="font-weight:bold;">Notices</font></b>.&nbsp;&nbsp; Any notice to the Company
provided for herein shall be in writing to the Company, marked Attention: Joel
I. Beerman, Vice President - General Counsel and Secretary, and any notice to
the Optionee shall be addressed to said Optionee at his or her address
currently on file with the Company. Except as otherwise provided herein, any
written notice shall be deemed to be duly given if and when delivered
personally or deposited in the United States mail, first class registered mail,
postage and fees prepaid, and addressed as aforesaid. Any party may change the
address to which notices are to be given hereunder by written notice to the
other&#160;&#160;&#160; party as herein specified
(provided that for this purpose any mailed notice shall be deemed given on the
third business day following deposit of the same in the United States mail).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the
Company has caused this Agreement to be executed on its behalf by its duly
authorized officer and Optionee has also executed this Agreement in duplicate,
as of the day and year first above written.</font></p>

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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">GEORGIA GULF CORPORATION</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice President</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Optionee</font></p>
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