Document:

Exhibit 10.16

Exhibit 10.16

POSITIVEID ANIMAL HEALTH CORPORATION

RESTRICTED STOCK AWARD AGREEMENT

UNDER POSITIVEID ANIMAL HEALTH CORPORATION 2010 FLEXIBLE STOCK PLAN

This RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”) is made as of [insert date of grant]
(the “Grant Date”) between PositiveID Animal Health Corporation, a Florida corporation (the
“Company”), and [insert name of Grantee] (the “Grantee”).

Background Information

A. The Compensation Committee has granted to the Grantee an award of [insert applicable
number] restricted shares of common stock, par value $0.01 per share (the “Common Stock”), of the
Company (the “Award”) pursuant to the Company’s 2010 Flexible Stock Plan (the “2010 Plan”).

B. The Company and the Grantee are entering into this Agreement in order to evidence the
Award, which shall be governed in all respects by the terms and provisions hereof.

C. The Grantee desires to accept the Award grant and agrees to be bound by the terms and
conditions of this Agreement.

D. This Agreement shall be subject to and governed by the 2010 Plan, which is incorporated
herein by reference. For purposes of such incorporation, all references in such sections to the
term “Plan” shall be deemed to be references to this Agreement.

Agreement

1. Restricted Stock. Subject to the terms and conditions provided in this Agreement,
the Company hereby grants to the Grantee [insert applicable number] shares of Common Stock (the
“Restricted Stock”) as of the Grant Date. The extent to which the Grantee’s rights and interest in
the Restricted Stock becomes vested and non-forfeitable shall be determined in accordance with the
provisions of Sections 2 and 3 of this Agreement.

2. Vesting. Except as may be otherwise provided in Section 3 of this Agreement, the
vesting of the Grantee’s rights and interest in the Restricted Stock shall be determined in
accordance with this Section 2. The Grantee’s rights and interest in the Restricted Stock shall
become fully vested and non-forfeitable and shall cease being restricted on [insert applicable
date], provided that (1) the Grantee does not resign prior to [insert applicable date] and (2) the
Company does not terminate the employment of the Grantee for cause prior to [insert applicable
date], with said cause being defined as a conviction of a felony or Grantee’s being prevented from
providing services hereunder as a result of Grantee’s violation of any law, regulation and/or rule.

3. Change of Control. In the event of a Change of Control (as defined in the 2010
Plan), Restricted Stock that is not yet vested on the date such Change of Control is determined to
have occurred shall become fully vested on the date such Change of Control is determined to have
occurred.

4. Restrictions on Transfer; Legending of Shares. Until such time as any share of
Restricted Stock becomes vested pursuant to Section 2 or Section 3 of this Agreement, the Grantee
shall not have the right to make or permit to occur any transfer, pledge or hypothecation of all or
any portion of the Restricted Stock, whether outright or as security, with or without
consideration, voluntary or involuntary. Any transfer, pledge or hypothecation not made in
accordance with this Agreement shall be deemed null and void. The certificate evidencing the
Restricted Stock shall contain a legend in substantially the following form:

“The shares evidenced by this certificate are subject to restrictions on
transfer set forth in the Restricted Stock Award Agreement, dated [insert
applicable date], between PositiveID Animal Health Corporation (the “Company”)
and [insert name of Grantee], a copy of which may be obtained from the Company
at its principal executive offices.”

“The shares of common stock of the Company represented hereby have not been
registered under the Securities Act of 1933, as amended, or applicable state
securities laws and may not be transferred, pledged, hypothecated or otherwise
disposed of in the absence of an effective registration statement covering such
shares under that Act and any applicable state securities laws, unless, in the
opinion of counsel satisfactory to the Company, an exemption from registration
thereunder is available.”

 

 

 

5. Forfeiture. The Grantee shall forfeit all of his rights and interest in the
Restricted Stock if the Grantee resigns or the Company terminates the employment of the Grantee for
cause (as defined in Section 2 above) before the Restricted Stock becomes fully vested in
accordance with Section 2 or Section 3 of this Agreement.

6. Shares Held by Custodian; Rights to Dividends and Voting Rights. The Grantee hereby
authorizes and directs the Company to deliver any share certificate issued by the Company to
evidence the award of Restricted Stock to the Secretary of the Company or such other officer of the
Company (other than the Grantee) as may be designated by the Company’s Board of Directors or the
Compensation Committee of such Board (the “Share Custodian”) to be held by the Share Custodian
until the Restricted Stock becomes fully vested in accordance with Section 2 or Section 3 of this
Agreement. When the Restricted Stock becomes vested, the Share Custodian shall deliver to the
Grantee (or his beneficiary in the event of death) a certificate representing the vested Restricted
Stock (which then will be unrestricted) and may delete the first paragraph of the legend set forth
in Section 4 above. The Grantee hereby irrevocably appoints the Share Custodian, and any successor
thereto, as the true and lawful attorney-in-fact of the Grantee with full power and authority to
execute any stock transfer power or other instrument necessary to transfer the Restricted Stock to
the Company, or to transfer the Restricted Stock to the Grantee on an unrestricted basis upon
vesting, pursuant to this Agreement, in the name, place, and stead of the Grantee. The term of such
appointment shall commence on the Grant Date and shall continue until the Restricted Stock becomes
vested or is forfeited. During the period that the Share Custodian holds the shares of Restricted
Stock subject to this Section 6, the Grantee shall be entitled to all rights applicable to shares
of Common Stock of the Company not so held, including the right to vote and receive dividends, but
provided, however, in the event of (i) any change in the Common Stock of the Company by reason of
any stock dividend, spin-off, split-up, spin-out, recapitalization, merger, consolidation,
reorganization, combination or exchange of shares or (ii) any distribution of Common Stock or other
securities of the Company in respect of such shares of Common Stock, the Grantee agrees that any
certificate representing shares of such additional Common Stock or other securities of the Company
issued as a result of any of the foregoing shall be delivered to the Share Custodian and shall be
subject to all of the provisions of this Agreement as if initially received hereunder.

7. Tax Consequences. Upon the occurrence of a vesting event specified in Section 2 or
Section 3 above, the Grantee must satisfy the federal, state, local or foreign income and social
insurance withholding taxes imposed by reason of the vesting of the Restricted Stock. The Grantee
shall make an election with respect to the method of satisfaction of such tax withholding
obligation in accordance with procedures established by the Compensation Committee of the Company’s
Board of Directors. Unless the Grantee delivers to the Company or its designee within ten (10) days
after the occurrence of the vesting event specified in Section 2 or Section 3 above a certified
check payable in the amount of all tax withholding obligations imposed on the Grantee and the
Company by reason of the vesting of the Restricted Stock, the Grantee’s actual number of vested
shares of Restricted Stock shall be reduced by the smallest number of whole shares which, when
multiplied by the Fair Market Value of the Common Stock on the vesting date, is sufficient to
satisfy the amount of such tax withholding obligations. For purposes of this Agreement, the term
“Fair Market Value” shall have the meaning specified in the 2010 Plan.

The Grantee understands that the Grantee may elect to be taxed at the Grant Date rather than
when the Restricted Stock becomes vested by filing with the Internal Revenue Service an election
under section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), within thirty
(30) days from the Grant Date. The Grantee acknowledges that it is the Grantee’s sole
responsibility, and not the Company’s responsibility, to timely file the Code section 83(b)
election with the Internal Revenue Service if the Grantee intends to make such an election. Grantee
agrees to provide written notification to the Company if the Grantee files a Code section 83(b)
election.

8. No Effect on Employment. Nothing in this Agreement shall confer upon the Grantee
the right to continue in the employment of the Company or affect any right which the Company may
have to terminate the employment of the Grantee regardless of the effect of such termination of
employment on the rights of the Grantee or this Agreement.

 

 

 

9. Governing Laws. This Agreement shall be construed and enforced in accordance with
the laws of the State of Delaware, without regard to any applicable conflicts of law. By accepting
this Award, the Grantee irrevocably and unconditionally consents to submit to the exclusive
jurisdiction of the courts of the State of Florida or of the United States of America, in each case
located in Palm Beach County, Florida, for any litigation arising out of or
relating to this Agreement (and agrees not to commence any litigation relating thereto except
in such courts). The Grantee also irrevocably and unconditionally waives any objection to the
laying of venue of any litigation arising out of or related to this Award in the courts of the
State of Florida or of the United States of America, in each case located in Palm Beach County,
Florida, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim
in any such court that any such litigation brought in any such court has been brought in an
inconvenient forum.

10. Successors. This Agreement shall inure to the benefit of, and be binding upon,
the Company and the Grantee and their heirs, legal representatives, successors and permitted
assigns.

11. Severability. In the event that any one or more of the provisions or portion
thereof contained in this Agreement shall for any reason be held to be invalid, illegal or
unenforceable in any respect, the same shall not invalidate or otherwise affect any other
provisions of this Agreement, and this Agreement shall be construed as if the invalid, illegal or
unenforceable provision or portion thereof had never been contained herein.

12. Notices. All notices required or permitted hereunder shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to the party to be notified; (b) when
sent by confirmed facsimile if sent during normal business hours of the recipient, if not, then on
the next business day; (c) three (3) business days after having been sent by registered or
certified mail, return receipt requested, postage prepaid; or (d) one (1) day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with written verification of
receipt. All communications shall be sent as follows:

If to the Company:

PositiveID Animal Health Corporation

1690 South Congress Avenue, Suite 200

Delray Beach, Florida 33445

If to Grantee:

[insert name of Grantee]

[insert home address of Grantee]

13. Entire Agreement. Subject to paragraph D in the section of this Agreement under
the heading “Background Information,” this Agreement expresses the entire understanding and
agreement of the parties hereto with respect to the terms and conditions of this Award.

14. Headings. Section headings used herein are for convenience of reference only and
shall not be considered in construing this Agreement.

15. Additional Acknowledgements. By their signatures below (including electronic
signatures), the Grantee and the Company agree that the Restricted Stock is granted under and
governed by the terms and conditions of this Agreement. Grantee has reviewed the terms of this
Agreement, has had an opportunity to obtain the advice of counsel prior to executing this Agreement
and fully understands all provisions of this Agreement. Grantee hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Compensation Committee of the
Company’s Board of Directors upon any questions relating to this Agreement.

IN WITNESS WHEREOF, the Company and the Grantee have executed this Agreement as of the Grant
Date set forth above.

	 	 	 	 	 
	 	POSITIVEID ANIMAL HEALTH CORPORATION

 	 
	 	By:  	
 	 
	 	
GRANTEE: 
	 
	 	 	 	 
	 	
 	 
	 	[insert name of Grantee]Exhibit 10.17

Exhibit 10.17

NON-QUALIFIED STOCK OPTION AWARD GRANTED UNDER THE

POSITIVEID ANIMAL HEALTH CORPORATION

2010 FLEXIBLE STOCK PLAN

Name of Option Recipient: [insert name of Grantee]

On [insert applicable date] (the “Grant Date”), PositiveID Animal Health Corporation (the
“Company”) awarded you a stock option. You were granted an option to buy [insert applicable number]
Shares of the Common Stock at the price of $[insert applicable amount] per Share on or after
[insert vesting date], and on or before [insert expiration date]. [Where the option award is to
vest in tranches, use the following sentence as a replacement for the one immediately prior: You
were granted an option to buy [insert applicable number] Shares of the Common Stock at the price of
$[insert applicable amount] per Share on or after the following dates—[insert number for first
tranche] on [insert first vesting date]; [insert number for second tranche] on [insert second
vesting date]; and [insert number for third tranche] on [insert third vesting date]—and, in each
case, no later than [insert expiration date]. If to vest over more than, or less than, three
tranches, customize as necessary.]

IMPORTANT: By signing below, you agree to be bound by, and acknowledge receipt of, the
attached Terms and Conditions of this Non-Qualified Stock Option Award and the PositiveID Animal
Health Corporation 2010 Flexible Stock Plan.

	 	 	 	 	 	 	 
	 	 	PositiveID Animal Health Corporation
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

Read and agreed to this

_____ 

day of
 _____, 20___.

	 	 	 
	  

(Insert
Name of Grantee)

	 	 

 

 

 

TERMS AND CONDITIONS 

NON-QUALIFIED STOCK OPTION AWARD GRANTED UNDER 

POSITIVEID ANIMAL HEALTH CORPORATION 

2010 FLEXIBLE STOCK PLAN 

1. Definitions

	 	(a)	 	Committee	The Committee (or, in certain cases, its designees) who
administers the Stock Option Plan
	 
	 	(b)	 	Company	PositiveID Animal Health Corporation, a Florida corporation
	 
	 	(c)	 	Option 	The option granted by the Option Award
	 
	 	(d)	 	Option Award	The Non-Qualified Stock Option Award to which the Terms and
Conditions are attached together with, except where the
context requires otherwise, these Terms and Conditions
	 
	 	(e)	 	Participant	The recipient of an Option Award
	 
	 	(f)	 	Stock Option Plan	PositiveID Animal Health Corporation 2010 Flexible Stock Plan

All capitalized terms not otherwise defined herein shall have the meanings given to such terms by
the Stock Option Plan.

2. Evidence of Option Grant and Option not an Incentive Stock Option

The Option Award evidences a grant to the Participant of an Option to purchase that number of
Shares (“Optioned Shares”) of the Common Stock of the Company (“Shares”) set forth on the Option
Award. The Participant may exercise the Option as shown on the Option Award. In no event shall the
Option or any part of the Option be exercisable after [insert expiration date] (the “Option
Expiration Date”). The Option shall not be treated as an “Incentive Stock Option,” as defined in
Section 422 of the Internal Code of 1986, as amended (“Code”), notwithstanding the fact that
certain provisions of these Terms and Conditions incorporate portions of Code Section 422 and/or
comply with the requirements of such section.

3. Exercise of Option

The Option shall be exercised by the Participant delivering a written notice of exercise to
the Company’s corporate headquarters at 1690 S. Congress Ave., Suite 200, Delray Beach, Florida
33445. This notice shall specify the number of Optioned Shares the Participant then desires to
purchase.

4. Payment of Option Price

Payment for the Shares purchased under the Option shall be made to the Company in cash
(including cashier’s check, bank draft or money order).

In addition to the foregoing methods of payment, payment of the Option price may, at the
discretion of the Committee, be made in whole or in part in other property (including Shares owned
by the Participant), rights and credits, including the Participant’s promissory note.

5. Form of Notice of Exercise

The Participant’s notice as required by Section 3 shall be signed by the Participant and shall
be in substantially the following form:

“I hereby exercise my Option to purchase                      Shares in accordance
with my Option Award dated                     ,
 _____, granted
under the Company’s 2010 Flexible Stock Plan.

 

 

 

The aggregate Option price of the Shares I am purchasing is $                    . I
hereby tender in payment of such price, my cashier’s check, bank draft or money order made
payable to the Company in the amount of $                    .

I
hereby represent to the Company that I own the
                     Shares delivered
herewith in payment of the purchase price for the Shares free and clear of all liens and
encumbrances.

If the Shares purchased have not been registered under the Securities Act of 1933, I hereby
further represent to the Company that I am acquiring the                      Shares
that I am purchasing solely for investment and solely for my own account and that I have no
present intention of selling or offering for sale any of such Shares to any other person or
persons.”

6. Stock Certificates

Upon the exercise of the Option and payment of the Option price for the Shares being acquired
upon such exercise, whether in cash or cash and property, rights and/or credits specifically
permitted by the Committee, the Participant shall be entitled to a certificate evidencing the
Shares acquired upon exercise.

7. Legends on Certificates

The certificate or certificates to be issued under Section 6 shall be issued as soon as
practicable. Such certificate or certificates shall contain thereon a legend in substantially the
following form if the Shares evidenced by such certificate have not been registered under the
Securities Act of 1933, as amended:

“The shares represented by this certificate have not been registered under the Securities Act
of 1933 or any applicable state law. They may not be offered for sale, sold, transferred or
pledged without (1) registration under the Securities Act of 1933 and any applicable state
law, or (2) at holder’s expense, an opinion satisfactory to the Company that registration is
not required.”

The certificates shall also contain such other legends as may be appropriate or required by law,
such as a legend relating to any stockholders’ agreement that may apply to the Shares.

8. Termination of Employment/Service; Nonassignability

8.1 Voluntary Termination of Employment or Termination of Employment for Cause.

a. If the Participant shall voluntarily terminate his or her employment prior to
attainment of age 65, the Participant’s full interest in the Option shall terminate on
the date of such termination of employment and all rights thereunder shall cease, whether
or not the Option is then exercisable.

b. If the Participant’s employment is terminated by the Employer for “Cause”, as defined
below, then the Participant’s full interest in the Option shall terminate on the date of
such termination of employment and all rights thereunder shall cease, whether or not the
Option is then exercisable.

I. Whether a Participant’s employment is terminated for Cause shall be determined
by the Committee.

II. Cause shall include, but not be limited to, gross negligence, willful
misconduct, flagrant or repeated violations of the Employer’s policies, rules or
ethics, a material breach by the Participant of any employment agreement between
the Participant and the Employer, intoxication, substance abuse, sexual or other
unlawful harassment, disclosure of confidential or proprietary information,
engaging in a business competitive with the Employer, or dishonest, illegal or
immoral conduct.

8.2 Other Termination.

a. Death, Disability or Retirement. If the Participant’s employment shall be terminated
for death, disability (as such term is defined in Section 422(c)(6) of the Code), or
voluntary termination by the Participant after attainment of age 65 (“Retirement”), such
termination shall have no effect on his or her rights under the Option, regardless of
whether or not the Option is then exercisable. The Option shall continue to vest and
remain outstanding and exercisable until it expires by its terms.

 

 

 

b. Termination by the Employer without Cause. If the Participant’s employment shall be
terminated by the Employer without Cause, such termination shall have no effect on his or
her rights under the Option, regardless of whether or not the Option is then exercisable.
The Option shall continue to vest and remain outstanding and exercisable until it expires
by its terms.

8.3 Termination of Service on the Company’s Board of Directors (the “Board”).

a. For purposes of determining the rights of a member of the Board (a “Director”) under
this Section 8.3, the Participant’s service as a member of the Board shall be terminated
when he or she ceases to be a Director.

Notwithstanding the foregoing sentence, if a Participant is both a Director and an
Employee, his or her employment shall not be deemed to have been terminated as long as he
or she remains either a Director or an Employee, as the case may be.

b. If the Participant shall voluntarily terminate his or her service as a Director prior
to attainment of age 65, and before the expiration of his or her term, the Participant’s
full interest in the Option shall continue to vest and remain outstanding and exercisable
until it expires by its terms.

c. If the Participant’s service as a Director terminates as a result of not running for
reelection after the expiration of his or her term, said Director shall not be deemed to
have incurred a termination of service as a result of such term expiration. For purposes
of this Option, the Director shall be deemed to continue to serve on the Board until
(i) the expiration of the Option or (ii) as otherwise provided by the Committee in its
sole and absolute discretion.

d. If the Participant’s service as a Director terminates as a result of his or her death,
disability (as such term is defined in Section 422(c)(6) of the Code), or Retirement,
such termination shall have no effect on his or her rights under the Option, regardless
of whether or not the Option is then exercisable. The Option shall continue to vest and
remain outstanding and exercisable until it expires by its terms.

e. Notwithstanding any other provision in this Section 8.3, if the Participant’s service
as a Director is terminated for Cause, then the Participant’s full interest in the Option
shall terminate on the date of such termination of service and all rights thereunder
shall cease, whether or not the Option is then exercisable.

f. The Participant’s service as a Director shall be deemed to have been terminated
without Cause if the Participant ceases to serve in such a position solely due to the
failure to be reelected or reappointed, as the case may be, and such failure is not a
result of an act or omission which would constitute Cause. If the Participant’s service
as a Director is terminated without Cause, such termination shall have no effect on his
or her rights under the Option, regardless of whether or not the Option is then
exercisable. The Option shall continue to vest and remain outstanding and exercisable
until it expires by its terms.

8.4 Non-Transferability of Rights; Designation of Beneficiaries. The Option shall not
be transferable by the Participant otherwise than by will or the laws of descent and distribution
or as provided in this Section 8.4. During the lifetime of the Participant the Option shall be
exercisable only by the Participant. The Participant, however, may file with the Company a written
designation of a beneficiary or beneficiaries to exercise, in the event of death of the
Participant, the Option granted hereunder, subject to all of the provisions of this Section 8. A
Participant may from time to time revoke or change any such designation of beneficiary and any
designation of beneficiary under the Plan shall be controlling over any other disposition,
testamentary or otherwise; provided, however, that if the Committee shall be in doubt as to the
right of any such beneficiary to exercise the Option, the Committee may determine to recognize only
an exercise by the personal representative of the estate of the Participant, in which case the
Company, the Committee and the members thereof shall not be under any further liability to anyone.

8.5 Deemed Termination of Employment and Transfer. If the Employer that employs the
Participant (or of which the Participant is a Director) ceases to be an Employer, the Participant’s
employment shall be deemed to have been terminated by such Employer without Cause as of the date
that it ceases to be an Employer. The transfer of a Participant’s employment (or a Director’s
service as a Director) from one Employer to another Employer shall not be deemed a termination of
employment.

 

 

 

9. Withholding

The Company or any Affiliate that employs the Participant shall have the right to deduct any
sums that federal, state or local tax law requires to be withheld with respect to the exercise of
the Option, or as otherwise may be required by such laws. The Company or any such Affiliate may
require as a condition to issuing Shares upon the exercise of the Option that the Participant or
other person exercising the Option pay any sum that federal, state or local tax law requires to be
withheld with respect to such exercise. In the alternative, the Participant or other person
exercising the Option, may elect to pay such sums to the Company or the Affiliate delivering
written notice of that election to the Company’s corporate headquarters at 1690 S. Congress Avenue,
Suite 200, Delray Beach, Florida 33445, prior to or concurrently with exercise. There is no
obligation that the Participant be advised of the existence of the tax or the amount which the
employer corporation will be so required to withhold.

10. Right to Exercise Acceleration

On or before the Option Expiration Date, the Option shall be immediately exercisable in full
(if not already exercisable) upon a Change of Control.

11. Stock Option Plan Controls

The Option Award and these Terms and Conditions are subject to all terms and provisions of the
Stock Option Plan, which is incorporated herein by reference. In the event of any conflict, the
Stock Option Plan shall control over the Option Award and these Terms and Conditions.

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