Document:

Exhibit 10.1

Exhibit 10.1

HESKA CORPORATION

1997 STOCK INCENTIVE PLAN

(AS AMENDED MARCH 6, 2007 AND MAY 5, 2009)

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 1. INTRODUCTION
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 2. ADMINISTRATION
	 	 	3	 
	2.1 Committee Composition
	 	 	3	 
	2.2 Committee Responsibilities
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 3. SHARES AVAILABLE FOR GRANTS
	 	 	3	 
	3.1 Basic Limitation
	 	 	3	 
	3.2 Annual Increase in Shares
	 	 	4	 
	3.3 Additional Shares
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 4. ELIGIBILITY
	 	 	4	 
	4.1 Nonstatutory Stock Options and Restricted Shares
	 	 	4	 
	4.2 Incentive Stock Options
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 5. OPTIONS
	 	 	4	 
	5.1 Stock Option Agreement
	 	 	4	 
	5.2 Number of Shares
	 	 	4	 
	5.3 Exercise Price
	 	 	4	 
	5.4 Exercisability and Term
	 	 	5	 
	5.5 Effect of Change in Control
	 	 	5	 
	5.6 Modification or Assumption of Options
	 	 	5	 
	5.7 Buyout Provisions
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 6. PAYMENT FOR OPTION SHARES
	 	 	5	 
	6.1 General Rule
	 	 	5	 
	6.2 Surrender of Stock
	 	 	6	 
	6.3 Exercise/Sale
	 	 	6	 
	6.4 Exercise/Pledge
	 	 	6	 
	6.5 Promissory Note
	 	 	6	 
	6.6 Other Forms of Payment
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 7. [Reserved]
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 8. RESTRICTED SHARES
	 	 	6	 
	8.1 Time, Amount and Form of Awards
	 	 	6	 
	8.2 Payment for Awards
	 	 	6	 
	8.3 Vesting Conditions
	 	 	7	 
	8.4 Voting and Dividend Rights
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 9. PROTECTION AGAINST DILUTION
	 	 	7	 
	9.1 Adjustments
	 	 	7	 
	9.2 Dissolution or Liquidation
	 	 	7	 
	9.3 Reorganizations
	 	 	7	 

 

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	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 10. AWARDS UNDER OTHER PLANS
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 11. LIMITATION ON RIGHTS
	 	 	8	 
	11.1 Retention Rights
	 	 	8	 
	11.2 Stockholders’ Rights
	 	 	8	 
	11.3 Regulatory Requirements
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 12. WITHHOLDING TAXES
	 	 	8	 
	12.1 General
	 	 	8      	 
	12.2 Share Withholding
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 13. FUTURE OF THE PLAN
	 	 	8	 
	13.1 Term of the Plan
	 	 	8	 
	13.2 Amendment or Termination
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 14. DEFINITIONS
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 15. EXECUTION
	 	 	11	 

 

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HESKA CORPORATION

1997 STOCK INCENTIVE PLAN

ARTICLE 1. INTRODUCTION.

The Plan was adopted by the Board effective March 15, 1997. The purpose of the Plan is to
promote the long-term success of the Company and the creation of stockholder value by (a)
encouraging Employees, Outside Directors and Consultants to focus on critical long-range
objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and
Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and
Consultants directly to stockholder interests through increased stock ownership. The Plan seeks to
achieve this purpose by providing for Awards in the form of Restricted Shares or Options (which may
constitute incentive stock options or nonstatutory stock options).

The Plan shall be governed by, and construed in accordance with, the laws of the State of
Colorado (except their choice-of-law provisions).

ARTICLE 2. ADMINISTRATION.

2.1 Committee Composition. The Plan shall be administered by the Committee. The Committee
shall consist exclusively of two or more directors of the Company, who shall be appointed by
the Board. In addition, the composition of the Committee shall satisfy:

(a) Such requirements as the Securities and Exchange Commission may establish for
administrators acting under plans intended to qualify for exemption under Rule 16b-3
(or its successor) under the Exchange Act; and

(b) Such requirements as the Internal Revenue Service may establish for outside
directors acting under plans intended to qualify for exemption under section
162(m)(4)(C) of the Code.

The Board may also appoint one or more separate committees of the Board, each composed of one or
more directors of the Company who need not satisfy the foregoing requirements, who may administer
the Plan with respect to Employees and Consultants who are not considered officers or directors of
the Company under section 16 of the Exchange Act, may grant Awards under the Plan to such Employees
and Consultants and may determine all terms of such Awards.

2.2 Committee Responsibilities. The Committee shall (a) select the Employees, Outside
Directors and Consultants who are to receive Awards under the Plan, (b) determine the type,
number, vesting requirements and other features and conditions of such Awards, (c) interpret
the Plan and (d) make all other decisions relating to the operation of the Plan. The
Committee may adopt such rules or guidelines as it deems appropriate to implement the Plan.
The Committee’s determinations under the Plan shall be final and binding on all persons.

ARTICLE 3. SHARES AVAILABLE FOR GRANTS.

3.1 Basic Limitation. Common Shares issued pursuant to the Plan may be authorized but
unissued shares or treasury shares. The aggregate number of Options and Restricted Shares
awarded under the Plan shall not exceed (a) 1,350,000 plus (b) the aggregate number of
Common Shares remaining available for grants under the Predecessor Plans on March 15, 1997,
plus (c) the additional Common Shares described in Sections 3.2 and 3.3 less (d) 250,000.
No additional grants shall be made under the Predecessor Plans after March 15, 1997. The
limitation of this Section 3.1 shall be subject to adjustment pursuant to Article 9.

 

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3.2 Annual Increase in Shares. As of January 1 of each year, commencing with the year 1998
and continuing through January 1, 2007, the aggregate number of Options and Restricted
Shares that may be awarded under the Plan shall be increased by a number of Common Shares
equal to the lesser of (a) 5% of the total number of Common Shares outstanding as of the
next preceding December 31 or (b) 1,500,000. After the annual increase on January 1, 2007,
there shall be no further annual increases under the Plan unless and until stockholder
approval of such increase has been obtained.

3.3 Additional Shares. If Options granted under this Plan or under the Predecessor Plans
are forfeited or terminate for any other reason before being exercised, then the
corresponding Common Shares shall become available for the grant of Options and Restricted
Shares under this Plan. If Restricted Shares are forfeited, then the corresponding Common
Shares shall again become available for the grant of NQOs and Restricted Shares under the
Plan. The aggregate number of Common Shares that may be issued under the Plan upon the
exercise of ISOs shall not be increased when Restricted Shares are forfeited.

ARTICLE 4. ELIGIBILITY.

4.1 Nonstatutory Stock Options and Restricted Shares. Only Employees, Outside Directors and
Consultants shall be eligible for the grant of NQOs and Restricted Shares.

4.2 Incentive Stock Options. Only Employees who are common-law employees of the Company, a
Parent or a Subsidiary shall be eligible for the grant of ISOs. In addition, an Employee
who owns more than 10% of the total combined voting power of all classes of outstanding
stock of the Company or any of its Parents or Subsidiaries shall not be eligible for the
grant of an IS0 unless the requirements set forth in section 422(c)(6) of the Code are
satisfied.

ARTICLE 5. OPTIONS.

5.1 Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a
Stock Option Agreement between the Optionee and the Company. Such Option shall be subject
to all applicable terms of the Plan and may be subject to any other terms that are not
inconsistent with the Plan. The Stock Option Agreement shall specify whether the Option is
an IS0 or an NQO. The provisions of the various Stock Option Agreements entered into under
the Plan need not be identical. Options may be granted in consideration of a cash payment
or in consideration of a reduction in the Optionee’s other compensation. A Stock Option
Agreement may provide that a new Option will be granted automatically to the Optionee when
he or she exercises a prior Option and pays the Exercise Price in the form described in
Section 6.2.

5.2 Number of Shares. Each Stock Option Agreement shall specify the number of Common Shares
subject to the Option and shall provide for the adjustment of such number in accordance with
Article 9. Options granted to any Optionee in a single fiscal year of the Company shall not
cover more than 500,000 Common Shares, except that Options granted to a new Employee in the
fiscal year of the Company in which his or her service as an Employee first commences shall
not cover more than one million Common Shares. The limitations set forth in the preceding
sentence shall be subject to adjustment in accordance with Article 9.

5.3 Exercise Price. Each Stock Option Agreement shall specify the Exercise Price; provided
that the Exercise Price under an IS0 shall in no event be less than 100% of the Fair Market
Value of a Common Share on the date of grant and the Exercise Price under an NQO shall in no
event be less than 85% of the Fair Market Value of a Common Share on the date of grant. In
the case of an NQO, a Stock Option Agreement may specify an Exercise Price that varies in
accordance with a predetermined formula while the NQO is outstanding.

 

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5.4 Exercisability and Term. Each Stock Option Agreement shall specify the date when all or
any installment of the Option is to become exercisable. The Stock Option Agreement shall
also specify the term of the Option; provided that the term of an IS0 shall in no event
exceed 10 years from the date of grant. A Stock Option Agreement may provide for
accelerated exercisability in the event of the Optionee’s death, disability or retirement or
other events and may provide for expiration prior to the end of its term in the event of the
termination of the Optionee’s service. NQOs may also be awarded in combination with
Restricted Shares, and such an Award may provide that the NQOs will not be exercisable
unless the related Restricted Shares are forfeited.

5.5 Effect of Change in Control. The Committee may determine, at the time of granting an
Option or thereafter, that such Option shall become exercisable as to all or part of the
Common Shares subject to such Option in the event that a Change in Control occurs with
respect to the Company, subject to the following limitations:

(a) In the case of an ISO, the acceleration of exercisability shall not occur without
the Optionee’s written consent.

(b) If the Company and the other party to the transaction constituting a Change in
Control agree that such transaction is to be treated as a “pooling of interests” for
financial reporting purposes, and if such transaction in fact is so treated, then the
acceleration of exercisability shall not occur to the extent that the surviving
entity’s independent public accountants determine in good faith that such
acceleration would preclude the use of “pooling of interests” accounting.

5.6 Modification or Assumption of Options. Within the limitations of the Plan, the Committee
may modify, extend or assume outstanding options or may accept the cancellation of
outstanding options (whether granted by the Company or by another issuer) in return for the
grant of new options for the same or a different number of shares and at the same or a
different exercise price. The foregoing notwithstanding, no modification of an Option
shall, without the consent of the Optionee, alter or impair his or her rights or obligations
under such Option.

5.7 Buyout Provisions. The Committee may at any time (a) offer to buy out for a payment in
cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect
to cash out an Option previously granted, in either case at such time and based upon such
terms and conditions as the Committee shall establish.

ARTICLE 6. PAYMENT FOR OPTION SHARES.

6.1 General Rule. The entire Exercise Price of Common Shares issued upon exercise of Options
shall be payable in cash or cash equivalents at the time when such Common Shares are
purchased, except as follows:

(a) In the case of an IS0 granted under the Plan, payment shall be made only pursuant
to the express provisions of the applicable Stock Option Agreement. The Stock Option
Agreement may specify that payment may be made in any form(s) described in this
Article 6.

(b) In the case of an NQO, the Committee may at any time accept payment in any
form(s) described in this Article 6.

 

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6.2 Surrender of Stock. To the extent that this Section 6.2 is applicable, all or any part
of the Exercise Price may be paid by surrendering, Common Shares that are already owned by
the Optionee. Such Common Shares shall be valued at their Fair Market Value on the date
when the new Common Shares are purchased under the Plan. The Optionee shall not surrender,
Common Shares in payment of the Exercise Price if such action would cause the Company to
recognize compensation expense (or additional compensation expense) with respect to the
Option for financial reporting purposes.

6.3 Exercise/Sale. To the extent that this Section 6.3 is applicable, all or any part of
the Exercise Price and any withholding taxes may be paid by delivering (on a form prescribed
by the Company) an irrevocable direction to a securities broker approved by the Company to
sell all or part of the Common Shares being purchased under the Plan and to deliver all or
part of the sales proceeds to the Company.

6.4 Exercise/Pledge. To the extent that this Section 6.4 is applicable, all or any part of
the Exercise Price and any withholding taxes may be paid by delivering (on a form prescribed
by the Company) an irrevocable direction to pledge all or part of the Common Shares being
purchased under the Plan to a securities broker or lender approved by the Company, as
security for a loan, and to deliver all or part of the loan proceeds to the Company.

6.5 Promissory Note. To the extent that this Section 6.5 is applicable, all or any part of
the Exercise Price and any withholding taxes may be paid by delivering (on a form prescribed
by the Company) a full-recourse promissory note; provided that the par value of the Common
Shares being purchased under the Plan shall be paid in cash or cash equivalents.

6.6 Other Forms of Payment. To the extent that this Section 6.6 is applicable, all or any
part of the Exercise Price and any withholding taxes may be paid in any other form that is
consistent with applicable laws, regulations and rules.

ARTICLE 7. [Reserved]

ARTICLE 8. RESTRICTED SHARES.

8.1 Time, Amount and Form of Awards. Awards under the Plan may be granted in the form of
Restricted Shares. Restricted Shares may also be awarded in combination with NQOs, and such
an Award may provide that the Restricted Shares will be forfeited in the event that the
related NQOs are exercised.

8.2 Payment for Awards. To the extent that an Award is granted in the form of newly issued
Restricted Shares, the Award recipient, as a condition to the grant of such Award, shall be
required to pay the Company in cash or cash equivalents an amount equal to the par value of
such Restricted Shares. To the extent that an Award is granted in the form of Restricted
Shares from the Company’s treasury, no cash consideration shall be required of the Award
recipients. Any amount not paid in cash may be paid with a full recourse promissory note.

 

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8.3 Vesting Conditions. Each Award of Restricted Shares may or may not be subject to
vesting. Vesting shall occur, in full or in installments, upon satisfaction of the
conditions specified in the Stock Award Agreement. A Stock Award Agreement may provide for
accelerated vesting in the event of the Participant’s death, disability or retirement or
other events. The Committee may determine, at the time of granting Restricted Shares or
thereafter, that all or part of such Restricted Shares shall become vested in the event that
a Change in Control occurs with respect to the Company, except as provided in the next
following sentence. If the Company and the other party to the transaction constituting a
Change in Control agree that such transaction is to be treated as a “pooling of interests”
for financial reporting purposes, and if such transaction in fact is so treated, then the
acceleration of vesting shall not occur to the extent that the surviving entity’s
independent public accountants determine in good faith that such acceleration would preclude
the use of “pooling of interests” accounting.

8.4 Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan
shall have the same voting, dividend and other rights as the Company’s other stockholders.
A Stock Award Agreement, however, may require that the holders of Restricted Shares invest
any cash dividends received in additional Restricted Shares. Such additional Restricted
Shares shall be subject to the same conditions and restrictions as the Award with respect to
which the dividends were paid.

ARTICLE 9. PROTECTION AGAINST DILUTION.

9.1 Adjustments. In the event of a subdivision of the outstanding Common Shares, a
declaration of a dividend payable in Common Shares, a declaration of a dividend payable in a
form other than Common Shares in an amount that has a material effect on the price of Common
Shares, a combination or consolidation of the outstanding Common Shares (by reclassification
or otherwise) into a lesser number of Common Shares, a recapitalization, a spin-off or a
similar occurrence, the Committee shall make such adjustments as it, in its sole discretion,
deems appropriate in one or more of (a) the number of Options and Restricted Shares
available for future Awards under Article 3, (b) the limitations set forth in Section 5.2,
(c) the number of Common Shares covered by each outstanding Option or (d) the Exercise Price
under each outstanding Option. Except as provided in this Article 9, a Participant shall
have no rights by reason of any issue by the Company of stock of any class or securities
convertible into stock of any class, any subdivision or consolidation of shares of stock of
any class, the payment of any stock dividend or any other increase or decrease in the number
of shares of stock of any class.

9.2 Dissolution or Liquidation. To the extent not previously exercised, Options shall
terminate immediately prior to the dissolution or liquidation of the Company.

9.3 Reorganizations. In the event that the Company is a party to a merger or other
reorganization, outstanding Options and Restricted Shares shall be subject to the agreement
of merger or reorganization. Such agreement may provide, without limitation, for the
continuation of outstanding Awards by the Company (if the Company is a surviving
corporation), for their assumption by the surviving corporation or its parent or subsidiary,
for the substitution by the surviving corporation or its parent or subsidiary of its own
awards for such Awards, for accelerated vesting and accelerated expiration, or for
settlement in cash or cash equivalents.

 

7

 

ARTICLE 10. AWARDS UNDER OTHER PLANS.

The Company may grant awards under other plans or programs. Such awards may be settled in the
form of Common Shares issued under this Plan. Such Common Shares shall be treated for all purposes
under the Plan like Restricted Shares and shall, when issued, reduce the number of Common Shares
available under Article 3.

ARTICLE 11. LIMITATION ON RIGHTS.

11.1 Retention Rights. Neither the Plan nor any Award granted under the Plan shall be
deemed to give any individual a right to remain an Employee, Outside Director or Consultant.
The Company and its Parents, Subsidiaries and Affiliates reserve the right to terminate the
service of any Employee, Outside Director or Consultant at any time, with or without cause,
subject to applicable laws, the Company’s certificate of incorporation and bylaws and a
written employment agreement (if any).

11.2 Stockholders’ Rights. A Participant shall have no dividend rights, voting rights or
other rights as a stockholder with respect to any Common Shares covered by his or her Award
prior to the time when a stock certificate for such Common Shares is issued or, in the case
of an Option, the time when he or she becomes entitled to receive such Common Shares by
filing a notice of exercise and paying the Exercise Price. No adjustment shall be made for
cash dividends or other rights for which the record date is prior to such time, except as
expressly provided in the Plan.

11.3 Regulatory Requirements. Any other provision of the Plan notwithstanding, the
obligation of the Company to issue Common Shares under the Plan shall be subject to all
applicable laws, rules and regulations and such approval by any regulatory body as may be
required. The Company reserves the right to restrict, in whole or in part, the delivery of
Common Shares pursuant to any Award prior to the satisfaction of all legal requirements
relating to the issuance of such Common Shares, to their registration, qualification or
listing or to an exemption from registration, qualification or listing.

ARTICLE 12. WITHHOLDING TAXES.

12.1 General. To the extent required by applicable federal, state, local or foreign law, a
Participant or his or her successor shall make arrangements satisfactory to the Company for
the satisfaction of any withholding tax obligations that arise in connection with the Plan.
The Company shall not be required to issue any Common Shares or make any cash payment under
the Plan until such obligations are satisfied.

12.2 Share Withholding. The Committee may permit a Participant to satisfy all or part of his
or her withholding or income tax obligations by having the Company withhold all or a portion
of any Common Shares that otherwise would be issued to him or her or by surrendering all or
a portion of any Common Shares that he or she previously acquired. Such Common Shares shall
be valued at their Fair Market Value on the date when taxes otherwise would be withheld in
cash.

ARTICLE 13. FUTURE OF THE PLAN.

13.1 Term of the Plan. The Plan, as set forth herein, shall become effective on March 14,
1997. The Plan shall remain in effect until it is terminated under Section 13.2, except
that no ISOs shall be granted after May 4, 2019.

 

8

 

13.2 Amendment or Termination. The Board may, at any time and for any reason, amend or
terminate the Plan. An amendment of the Plan shall be subject to the approval of the
Company’s stockholders only to the extent required by applicable laws, regulations or rules.
No Awards shall be granted under the Plan after the termination thereof. The termination of
the Plan, or any amendment thereof, shall not affect any Award previously granted under the
Plan.

ARTICLE 14. DEFINITIONS.

14.1
“Affiliate” means any entity other than a Subsidiary, if the Company and/or one or more
Subsidiaries own not less than 50% of such entity.

14.2 “Award” means any award of an Option or a Restricted Share under the Plan.

14.3 “Board” means the Company’s Board of Directors, as constituted from time to time.

14.4 “Change in Control” shall mean:

(a) The consummation of a merger or consolidation of the Company with or into another
entity or any other corporate reorganization, if more than 50% of the combined voting
power of the continuing or surviving entity’s securities outstanding immediately
after such merger, consolidation or other reorganization is owned by persons who were
not stockholders of the Company immediately prior to such merger, consolidation or
other reorganization;

(b) The sale, transfer or other disposition of all or substantially all of the
Company’s assets;

(c) A change in the composition of the Board, a result of which fewer than 50% of the
incumbent directors are directors who either (i) had been directors of the Company on
the date 24 months prior to the date of the event that may constitute a Change in
Control (the “original directors”) or (ii) were elected, or nominated for election,
to the Board with the affirmative votes of at least a majority of the aggregate of
the original directors who were still
in office at the time of the election or nomination and the directors whose election
or nomination was previously so approved; or

(d) Any transaction as a result of which any person is the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities
of the Company representing at least 30% of the total voting power represented by the
Company’s then outstanding voting securities. For purposes of this Paragraph (d),
the term “person” shall have the same meaning as when used in sections 13(d) and
14(d) of the Exchange Act but shall exclude (i) any person, or person affiliated with
said person, who, on March 15, 1997, is the beneficial owner of securities of the
Company representing at least 20% of the total voting power represented by the
Company’s then outstanding voting securities (11,607,764), (ii) a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or of a
Parent or Subsidiary and (iii) a corporation owned directly or indirectly by the
stockholders of the Company in substantially the same proportions as their ownership
of the common stock of the Company.

A transaction shall not constitute a Change in Control if its sole purpose is to change the state
of the Company’s incorporation or to create a holding company that will be owned in substantially
the same proportions by the persons who held the Company’s securities immediately before such
transaction.

 

9

 

14.5 “Code” means the Internal Revenue Code of 1986, as amended.

14.6 “Committee” means a committee of the Board, as described in Article 2.

14.7 “Common Share” means one share of the common stock of the Company.

14.8 “Company” means either (a) Heska Corporation, a California corporation (prior to the
formation of Heska Corporation, a Delaware corporation), or (b) Heska Corporation, a
Delaware corporation (following its formation).

14.9 “Consultant” means a consultant or adviser who provides bona fide services to the
Company, a Parent, a Subsidiary or an Affiliate as an independent contractor. Service as a
Consultant shall be considered employment for all purposes of the Plan, except as provided
in Section 4.2.

14.10 “Employee” means a common-law employee of the Company, a Parent, a Subsidiary or an
Affiliate.

14.11 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

14.12 “Exercise Price” means the amount for which one Common Share may be purchased upon
exercise of such Option, as specified in the applicable Stock Option Agreement.

14.13 “Fair Market Value” means the market price of Common Shares, determined by the
Committee in good faith on such basis as it deems appropriate. Whenever possible, the
determination of Fair Market Value by the Committee shall be based on the prices reported in
The Wall Street Journal. Such determination shall be conclusive and binding on all persons.

14.14 “ISO” means an incentive stock option described in section 422(b) of the Code.

14.15 “NQO means a stock option not described in sections 422 or 423 of the Code.

14.16 “Option” means an IS0 or NQO granted under the Plan and entitling the holder to
purchase Common Shares.

14.17 “Optionee” means an individual or estate who holds an Option.

14.18 “Outside Director” shall mean a member of the Board who is not an Employee. Service
as an Outside Director shall be considered employment for all purposes of the Plan, except
as provided in Section 4.2.

14.19 “Parent” means any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company, if each of the corporations other than the Company
owns stock possessing 50% or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain. A corporation that attains the status of a
Parent on a date after the adoption of the Plan shall be considered a Parent commencing as
of such date.

14.20 “Participant” means an individual or estate who holds an Award.

14.21 “Plan” means this Heska Corporation 1997 Stock Incentive Plan, as amended from time to
time.

14.22 “Predecessor Plans” means (a) the 1988 Heska Corporation Stock Plan and (b) the Heska
Corporation 1994 Key Executive Stock Plan.

 

10

 

14.23 “Restricted Share” means a Common Share awarded under the Plan.

14.24 “Stock Award Agreement” means the agreement between the Company and the recipient of a
Restricted Share that contains the terms, conditions and restrictions pertaining to such
Restricted Share.

14.25 “Stock Option Agreement” means the agreement between the Company and an Optionee that
contains the terms, conditions and restrictions pertaining to his or her Option.

14.26 “Subsidiary” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company, if each of the corporations other than the last
corporation in the unbroken chain owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. A
corporation that attains the status of a Subsidiary on a date after the adoption of the Plan
shall be considered a Subsidiary commencing as of such date.

ARTICLE 15. EXECUTION.

To record the adoption of the Plan by the Board, the Company has caused its duly authorized
officer to execute this document in the name of the Company.

	 	 	 	 	 
	 	HESKA CORPORATION

 	 
	 	By:  	/s/  Jason A. Napolitano
 	 
	 	 	Executive Vice President and 	 
	 	 	Chief Financial Officer 	 

 

11Exhibit 10.8

Exhibit 10.8

Heska Corporation

2011 Management Incentive Plan

	1.	 	The Category Percentages for the 2011 MIP are as follows:

	 	 	 
	Title	 	Heska MIP
	Chief Executive Officer
	 	50.0% of base pay
	President
	 	35.0% of base pay
	Chief Financial Officer
	 	35.0% of base pay
	Executive Vice Presidents
	 	35.0% of base pay
	Vice Presidents
	 	35.0% of base pay
	Managing Directors
	 	25.0% of base pay
	Directors
	 	25.0% of base pay

	2.	 	The Plan Allocation for the 2011 MIP is as follows:
	 
	 	 	50% on overall achievement of the Financial Performance Metric (“FPM”) and
50% on Strategic Growth Initiatives (“SGI”).
	 
	3.	 	The Key Parameters for the 2011 MIP are as follows:

	 	•	 	Pre-MIP Operating Income — 50%
	 
	 	•	 	Strategic Growth Initiative Milestone Achievement — 50%, as defined below

	 	•	 	Growth Initiative A

	 	•	 	Milestone A: Execute contract by end of Q2 2011

	 	•	 	Growth Initiative B

	 	•	 	Milestone B1: Execute contract by end of Q2 2011
	 
	 	•	 	Milestone B2: Launch first product by end of Q3 2011

	 	•	 	Growth Initiative C

	 	•	 	Milestone C1: Execute agreement by end of Q3 2011
	 
	 	•	 	Milestone C2: Formalize alliance by end of Q3 2011

	4.	 	The Payout Structure for the 2011 MIP is as follows:

	 	•	 	For FPM of Pre-MIP Operating Income see the attached table
	 
	 	•	 	For SGI, achievement of milestones and Pre-MIP Operating Income of $1,500,000,
see the attached table. Each milestone is worth 20% of the potential MIP payout
for SGI

 

 

 

	 	•	 	Payouts for each parameter will be calculated independent of the success or
failure of the other parameter
	 
	 	•	 	Maximum MIP Payout for Proposed 2011 MIP for the financial metric parameter is
paid at $5,562,500 of Pre-MIP Operating Income and 100% achievement of the five
milestones for SGI
	 
	 	•	 	For example, 100% achievement of the SGI milestones and $1,300,000 of Pre-MIP
Operating Income would pay no MIP for either category. Achievement of 60% of the
SGI milestones and $3,177,072 of Pre-MIP Operating Income would pay MIP of $315,000
for SGI and $315,000 for FPM
	 
	 	•	 	Any MIP payment in excess of the Maximum MIP Payout shall be at the sole and
absolute discretion of the Compensation Committee

Heska Corporation

2011 MIP Payout Table

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	FPM	 	 	 	 	 	 	 	 	 	 
	Operating	 	Operating	 	 	MIP	 	 	50% FPM	 	 	 	 	 	 	 
	Income	 	Income	 	 	Payout	 	 	MIP	 	 	SGI Payout	 	 	Total Payout	 
	Pre-MIP	 	Post-MIP	 	 	%	 	 	Amount	 	 	Amount*	 	 	Amount	 
	1,500,000
	 	 	975,000	 	 	 	0	%	 	 	—	 	 	 	525,000	 	 	 	525,000	 
	1,779,512
	 	 	1,202,012	 	 	 	10	%	 	 	52,500	 	 	 	525,000	 	 	 	577,500	 
	2,059,024
	 	 	1,429,024	 	 	 	20	%	 	 	105,000	 	 	 	525,000	 	 	 	630,000	 
	2,338,536
	 	 	1,656,036	 	 	 	30	%	 	 	157,500	 	 	 	525,000	 	 	 	682,500	 
	2,618,048
	 	 	1,883,048	 	 	 	40	%	 	 	210,000	 	 	 	525,000	 	 	 	735,000	 
	2,897,560
	 	 	2,110,060	 	 	 	50	%	 	 	262,500	 	 	 	525,000	 	 	 	787,500	 
	3,177,072
	 	 	2,337,072	 	 	 	60	%	 	 	315,000	 	 	 	525,000	 	 	 	840,000	 
	3,456,584
	 	 	2,564,084	 	 	 	70	%	 	 	367,500	 	 	 	525,000	 	 	 	892,500	 
	3,736,096
	 	 	2,791,096	 	 	 	80	%	 	 	420,000	 	 	 	525,000	 	 	 	945,000	 
	4,015,608
	 	 	3,018,108	 	 	 	90	%	 	 	472,500	 	 	 	525,000	 	 	 	997,500	 
	4,295,125
	 	 	3,245,125	 	 	 	100	%	 	 	525,000	 	 	 	525,000	 	 	 	1,050,000	 
	4,548,600
	 	 	3,446,100	 	 	 	110	%	 	 	577,500	 	 	 	525,000	 	 	 	1,102,500	 
	4,802,075
	 	 	3,647,075	 	 	 	120	%	 	 	630,000	 	 	 	525,000	 	 	 	1,155,000	 
	5,055,550
	 	 	3,848,050	 	 	 	130	%	 	 	682,500	 	 	 	525,000	 	 	 	1,207,500	 
	5,309,025
	 	 	4,049,025	 	 	 	140	%	 	 	735,000	 	 	 	525,000	 	 	 	1,260,000	 
	5,562,500
	 	 	4,250,000	 	 	 	150	%	 	 	787,500	 	 	 	525,000	 	 	 	1,312,500	 
	5,562,500
	+ 	 	4,250,000	 	 	Capped	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 
	*	 	Assumes 100% achievement of milestones.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]