Exhibit
10.16


 


ELECTROMEDICAL
TECHNOLOGIES, INC. AWARD AGREEMENT - 2017 EMPLOYEE AND CONSULTANT STOCK OWNERSHIP PLAN - OPTIONS


 


Participant
Name: Alexander Pedenko Participant ID: N/A


 


Type
of Option: Nonstatutory Stock Option Grant Date: 6/20/2019


 


Exercise
Price: $0.71


 


Shares
Granted: 100,000


 


Term
and Vesting Date(s): Only if the participant is still a consultant or employee of Electromedical Technologies, Inc. as follows:
(1) 50,000 shares on June 20, 2019 and (2) 50,000 shares on January 1, 2020. If the participant is not an employee or consultant
of Electromedical Technologies on the Vesting Date, or if the participant is not employed or a consultant of Electromedical Technologies
prior to exercising the Grant, the Grant shall automatically lapse and be terminated.


 


Expiration
Date: June 30, 2022 Acceptance Date: June 20, 2019


 


This
Award Agreement (referred to below as this “Agreement”) spells out the terms and conditions of the stock option (the
“Option’”) granted to you by ElectroMedical Technologies, Inc., a Delaware corporation (the “Company”),
pursuant to the 2017 Employee and Consultant Stock Option Plan (the “Plan”) on and as of the Grant Date designated
above. Except as otherwise defined herein, capitalized terms used in this Agreement have the respective meanings set forth in
the Plan. The Plan, as in effect on the date of this Agreement and as it may be amended from time to time, is incorporated into
this Agreement by this reference.


 


You
and the Company agree as follows:


 


	1.	Grant
    of Stock Option.


 


Pursuant
to the approval and direction of the Administrator, the Company hereby grants you an Option to purchase all or any part of the
number of Shares Granted set forth above of common stock of the Company, par value $0.00001 (“Common Stock”), at the
per-share Exercise Price set forth above, which is 100% of the Fair Market Value of a share of Common Stock on the Grant Date,
subject to the terms and conditions of the Plan and this Agreement. For the avoidance of doubt, only Incentive Stock Options,
and not Nonstatutory Stock Options, will be treated as incentive stock options within the meaning of Code Section 422 and the
Treasury Regulations promulgated thereunder. If you are not a resident or citizen of the United States, the Company is not liable
to you for any loss, damage or liability you may incur in your country of residence by participating in the Plan and receiving
this Award.


 


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	2.	Vesting/Exercise/Expiration.


 


The
Employee or Consultant may not exercise the Option prior to each Vesting Date set forth above absent action by the Administrator
to waive or alter such restrictions or as may be permitted under paragraphs 3, 4 or 5 below. Thereafter, except as hereinafter
provided, the Employee or Consultant may exercise the Option, to the extent it is vested, at any time and from time to time until
the close of business on the Expiration Date set forth above, subject, in the event of a Change in Control, to the Administrator’s
exercise of its discretion under Section 9 of the Plan. The Option may be exercised to purchase any number of whole shares of
Common Stock, except that no purchase shall be for less than ten (10) full shares, or the remaining unexercised shares, if less.
Any Option is deemed to be “outstanding” until it has been exercised in full or expired pursuant to the terms of this
Agreement.


 


	3.	Forfeiture
    of Outstanding Options Following Termination of Service.


 


Without
limiting Sections 3(f)(11)-(iv) of the Plan and notwithstanding any provision of this Agreement to the contrary, your remaining
rights to any Options pursuant to this Agreement, if any, shall immediately terminate if and when:


 


	(a)	if
    you are an employee receiving Incentive Stock Options, during your employment with the Company, you voluntary quit or resign,
    or if you are terminated for Cause as determined by the Administrator, then your right to exercise your Incentive Stock Options
    shall terminate as of the date of you cease to be employed by the Company, subject to the right of the Administrator to extend
    the exercise period of this Incentive Stock Options. For purposes of this Section 3, “Cause” means any one or
    more of the following, as determined by the Administrator in its sole discretion:


 


	(b)	commission
    of a felony or any crime of moral turpitude;


 


	(ii)	dishonesty
    or material violation of standards of integrity in the course of fulfilling your employment duties to the Company or any Parent
    or Subsidiary;


 


	(iii)	material
    violation of a material written policy of the Company or any Parent or Subsidiary violation of which is grounds for immediate
    termination;


 


	(iv)	willful
    and deliberate failure to perform your employment duties to the Company or any Parent or Subsidiary in any material respect,
    after reasonable notice of such failure and an opportunity to correct it; or


 


	(v)	your
    failure to comply in any material respect with the Foreign Corrupt Practices Act, the Securities Act, the Exchange Act, the
    Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and the Truth in Negotiations
    Act, or any rules or regulations thereunder.


 


	(b)	if
    you receive either Incentive Stock Options or Nonstatutory Stock Options, you violate any obligation that you may have to
    the Company during or after your employment or consultancy with the Company, including but not limited to any non-competition,
    non-solicitation, confidentiality, non-disparagement or other restrictive covenant, to which you have agreed either orally
    or in writing.


 


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	4.	Exercise
    Process.


 


An
Option may be exercised by giving written notice to ElectroMedical Technologies, Inc., Attention: Plan Administrator, 16561 N
92TM Street, Suite 101, Scottsdale, AZ 85260 (or such other address as the Company may specify). Alternatively, the Company
may designate one or more third parties to administer the Option exercise process and direct you accordingly. The exercise notice
(a) shall be signed by you or (in the event of your death) your legal representative, (b) shall specify the number of full shares
then elected to be purchased, and (c) shall be accompanied by payment in full of the Exercise Price of the shares to be purchased.
Payment may be made in cash or by check payable to the order of the Company, and such payment shall include any tax withholding
obligation, as set forth in Section 8 below. Alternatively, the Administrator may allow for one or more of the following methods
of exercising an Option:


 


	(a)	Payment
    for shares as to which an Option is being exercised and/or payment of any federal, state, local or other tax withholding obligations
    may be made by transfer to the Company of shares of Common Stock you already own, or any combination of such shares and cash,
    having a fair market value determined at the time of exercise of the Option equal to, but not exceeding, the Exercise Price
    and/or the tax withholding obligation, as the case may be.


 


	(b)	A
    “same day sale” transaction pursuant to which a third party (engaged by your or the Company) loans funds to you
    to enable you to purchase the shares and pay any tax withholding obligations, and then sells a sufficient number of the exercised
    shares on your behalf to enable you to repay the loan and any fees. The remaining shares and/or cash are then delivered by
    the third party to you.


 


	(c)	A
    “net exercise” transaction, pursuant to which the Company delivers to you the net number of whole shares remaining
    from the portion of the Option being exercised after deduction of a number of shares of Common Stock with a Fair Market Value
    equal to the exercise price and a number of shares of Common Stock with a Fair Market Value equal to the amount of any tax
    withholding obligations.


 


As
promptly as practicable after receipt of such notice and payment (including payment with respect to any tax withholding obligations),
subject to Section 8 below, the Company shall cause to be issued and delivered to you (or in the event of your death to your legal
representative, as the case may be), certificates for the shares of Common Stock so purchased. Alternatively, such shares may
be issued and held in book entry form.


 


	5.	Tax
    Withholding.


 


The
Company may make such provisions and take such actions as it may deem necessary or appropriate for the withholding of any Federal,
state, local income and employment taxes and other taxes required by law to be withheld with respect to this Agreement, including,
but not limited to, deducting the amount of any such withholding taxes from the amount to be paid hereunder, whether in Common
Stock or in cash, or from any other amount then or thereafter payable to you, or requiring you or your beneficiary or legal representative
to pay to the Company the amount required to be withheld or to execute such documents as the Administrator or its designee deems
necessary or desirable to enable the Company to satisfy its withholding obligations. The Company may refuse to deliver Common
Stock if you, your beneficiary or legal representative fail to comply with your or its obligations under this Section. Regardless
of any action the Company takes with respect to any or all income tax, social security, payroll tax, payment on account or other
tax-related withholding (“Taxes”) that you are required to bear pursuant to all applicable laws, any and all Taxes
are your responsibility.


 


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	6.	Limited
    Transferability.


 


You
may not sell, transfer, pledge, assign or otherwise alienate or hypothecate this Agreement (any rights thereunder), whether voluntarily
or involuntarily or by operation of law, other than by beneficiary designation effective upon your death, by will or by the laws
of intestacy. During your lifetime this Agreement and all rights granted hereunder shall be exercisable only by you. Notwithstanding
the foregoing, you may transfer this Agreement, in whole or in part, in accordance with Section 3(f)(iv) of the Plan and subject
to any conditions specified by the Administrator under the Plan.


 


	7.	Rights
    as Shareholder.


 


You
shall have no rights as a shareholder of the Company with respect to the shares of Common Stock subject to this Agreement until
such time as the purchase price has been paid and a certificate of stock for such shares has been issued to you or such shares
of Common Stock have been recorded in your name in book entry form. Except as provided in Section 9 below, no adjustment shall
be made for dividends or distributions or other rights with respect to such shares for which the record date is prior to the date
on which you become the holder of record thereof. Anything herein to the contrary notwithstanding, if a law or any regulation
of the Securities and Exchange Commission or of any other body having jurisdiction shall require the Company or you to take any
action before shares of Common Stock can be delivered to you hereunder, then the date of delivery of such shares may be delayed
accordingly.


 


8.
Securities Laws.


 


Provided
the Company is not subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, you hereby represent that
you are acquiring the shares of Common Stock for investment and with no present intention of selling or transferring them and
that you will not sell or otherwise transfer the shares except in compliance with all applicable securities laws and requirements
of any stock exchange on which the shares of Common Stock may then be listed.


 


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The
Company will use its best efforts to register the Option Shares on Form S-1 or such other form that is legally permissible.


 


	9.	Change
    in Common Stock.


 


In
the event of any change in Common Stock by reason of any stock dividend, recapitalization, reorganization, split-up, merger, consolidation,
exchange of shares, or of any similar change affecting Common Stock, the number of shares of Common Stock subject to this Agreement
and the Exercise Price shall be equitably adjusted by the Administrator.


 


	10.	No
    Guarantee of Employment or Retainer.


 


Nothing
in this Award Agreement shall interfere with or limit in any way the right of the Company or any of its subsidiaries to terminate
your employment or consultancy at any time, nor confer upon you or any Employee or Consultant any right to continue in the employ
of the Company or any of its Subsidiaries. No Employee or Consultant shall have a right to be selected to be granted an Option
or any other Award under the Plan.


 


	11.	Administrator
    Authority; Recoupment.


 


It
is expressly understood that the Administrator is authorized to administer, construe, and make all determinations necessary or
appropriate for the administration of the Plan and this Agreement, including the enforcement of any recoupment policy, all of
which shall be binding upon you and any claimant. Any inconsistency between this Agreement and the Plan shall be resolved in favor
of the Plan.


 


	12.	Amendment
    or Modification, Waiver.


 


Except
as set forth in the Plan, no provision of this Agreement may be amended or waived unless the amendment or waiver is agreed to
in writing, signed by you and by a duly authorized officer of the Company. No waiver of any condition or provision of this Agreement
shall be deemed a waiver of a similar or dissimilar condition or provision at the same time, any prior time or any subsequent
time.


 


	13.	Governing
    Law and Jurisdiction.


 


This
Agreement is governed by the substantive and procedural laws of the state of Delaware. You and the Company shall submit to the
exclusive jurisdiction of, and venue in, the courts in Arizona in any dispute relating to this Agreement.


 


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	14.	Conformity
    with Applicable Law.


 


If
any provision of this Agreement is determined to be invalid, illegal or unenforceable in any respect under any applicable law
or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability
of any other provision of this Agreement or the validity, legality or enforceability of such provision in any other jurisdiction,
but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein.


 


	15.	Successors.


 


This
Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and any person or persons
who shall, upon your death, acquire any rights hereunder.


 


This
Agreement contains highly sensitive and confidential information. Please handle it accordingly. Once you have read and understood
this Agreement, please sign and date the document below to certify and confirm your agreement to be bound by the terms and conditions
of this Agreement and to acknowledge your receipt of the disclosure documentation required by the Securities Act and Exchange
Act (as applicable), the Plan and this Agreement and your acceptance of the terms and conditions of the Stock Option Award granted
hereunder.


 


Subject
to 409A ELECTROMEDICAL PARTICIPANT TECHNOLOGIES, IN¢ LLL a By: | By: Name: Matthew/Wolfson Name: Alexander Pedenko Title:
CEO Employee/Consultant (strike out as applicable) For and on behalf of the Administrator Date: June 20, 2019 Date: June 20, 2019


 


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