Document:

Exhibit

Exhibit 10.10

HESKA CORPORATION
2003 EQUITY INCENTIVE PLAN
RESTRICTED STOCK GRANT AGREEMENT

(Outside Director Award)

THIS AGREEMENT is made as of the _________ day of ____________, 20__ (the “Grant Date”) by and between Heska Corporation (the “Company”) and ___________ (the “Director”).
In consideration of the mutual covenants and representations herein set forth, the Company and Director agree as follows:
SECTION 1.    GRANT OF STOCK.

1.1    Precedence of Plan.  This Agreement is subject to and shall be construed in accordance with the terms and conditions of the Heska Corporation 2003 Equity Incentive Plan (the “Plan”), as now or hereinafter in effect.  Any capitalized terms that are used in this Agreement without being defined and that are defined in the Plan shall have the meaning specified in the Plan.  

1.2    Grant of Stock.  The Company hereby grants to Director an aggregate of ___________ shares of Restricted Stock (the “Shares”), subject to vesting as provided in Section 2.

SECTION 2.    UNVESTED SHARES SUBJECT TO FORFEITURE.
 
2.1    Shares Subject to Forfeiture.  

a.    The Shares will vest (the “Vesting Time”) at the latter of (i) the Company’s next Annual Meeting of Stockholders (the “Meeting”) and (ii) the one year anniversary of the Grant Date.  In addition, vesting is subject to (i) the Director’s service as a member of the Company’s Board of Directors (the “Board”) through the Vesting Time, unless that Director’s current Board term expires at the Meeting, in which case vesting is subject to the Director’s service as a member of the Company’s Board to the Meeting, and (ii) the Director not engaging in “Competition” prior to the Vesting Time.  For purposes of this Agreement, Director will be deemed to have engaged in “Competition” if Director, without the written consent of the Board, directly or indirectly (i) provides services or assistance in any form to any individual, entity, or company providing veterinary products for the companion animal health industry or imaging products or services for the veterinary market (a “Restricted Company”), whether such services or assistance is provided as an employee, consultant, agent, corporate officer, director, or otherwise or (ii) participates in the financing, operation, management, or control of, a Restricted Company.  A Restricted Company includes, without limitation, Abaxis, Inc., IDEXX Laboratories, Inc., scil animal health company GmbH (currently a wholly-owned subsidiary of Henry Schein, Inc.), Sound Technologies, Inc. (currently a wholly-owned subsidiary of VCA Inc.), and Synbiotics Corporation (currently a wholly owned subsidiary of Zoetis Inc.).  Notwithstanding the foregoing, Director shall not be deemed to be in Competition if Director is 

employed or engaged in a corporate function or senior management position (and holding commensurate equity interests) in a division of a Restricted Company, so long as such division is not in any way engaged in providing veterinary products for the companion animal health industry or imaging products or services for the veterinary market and Director does not directly or indirectly provide services or assistance to any division that does provide veterinary products for the companion animal health industry or imaging products or services for the veterinary market.

b.    In the event that the Director serves as a member of the Company’s Board for at least one (1) year from the Grant Date and Director’s service as a member of the Board is subsequently terminated because of either (i) Director’s death or (ii) Director’s Disability, the Shares will vest at the time the Director’s service as a member of the Board terminates.  Furthermore, if Director completes his or her Board term at the Meeting and prior to the Vesting Time and does not engage in Competition prior to the Vesting Time, the Shares shall vest at the Vesting Time.

c.    Except in the cases of (i) either a Change in Control of the Company, in which case the Shares shall vest, or (ii) the circumstances described in subsection b. above, which is governed by subsection b. above, in the event that Director’s service as a member of the Company’s Board is terminated prior to vesting, Director will forfeit all right to the Shares.

2.2    Restriction on Transfer.  Until the Shares are vested, the Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated.

SECTION 3.    STOCKHOLDER RIGHTS

3.1    Stock Register and Certificates.  The Shares will be recorded in the stock register of the Company in the name of Director.  If applicable, a stock certificate or certificates representing the Shares will be registered in the name of Director, but such certificates shall remain in the custody of the Company.  Director shall deposit with the Company a Stock Assignment Separate from Certificate in the form attached below as Attachment 1, endorsed in blank, so as to permit retransfer to the Company of all or a portion of the Shares that are forfeited or otherwise do not become vested in accordance with the Plan and this Agreement.

3.2    Exercise of Stockholder Rights.  Director shall have the right to vote the Shares (to the extent of the voting rights of said Shares, if any), to receive and retain all regular cash dividends and such other distributions, as the Board of the Company may, in its discretion, designate, pay or distribute on such Shares, and to exercise all other rights, powers and privileges of a holder of Common Stock with respect to such Shares, except as set forth in this Agreement and the Plan.

3.3    Legends.  Certificates, if any, representing the Shares will contain the following or other legends in the Company’s discretion:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS UPON AND OBLIGATIONS WITH RESPECT TO TRANSFER AND RIGHTS OF REPURCHASE AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL 

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REGISTERED HOLDER, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY.
SECTION 4.    RESPONSIBILITY FOR TAXES.

4.1    Section 83(b) Election.  Director may complete and file with the Internal Revenue Service an election pursuant to Section 83(b) of the Internal Revenue Code to be taxed currently on the fair market value of the Shares without regard to the vesting restrictions set forth in this Agreement.  Director shall be responsible for all taxes associated with the acceptance of the transfer of the Shares, including any tax liability associated with the representation of fair market value if the election is made pursuant to Code Section 83(b).

4.2    Withholding.  In accordance with Section 11 of the Plan, Director agrees to remit to the Company an amount sufficient to satisfy federal, state and local taxes (including the Executive’s FICA obligation) required to be withheld with respect to the vesting of the Shares, or otherwise to satisfy such obligation as permitted under the Plan.

SECTION 5.    MISCELLANEOUS.

5.1    Not an Employment Contract.  This Agreement is not an employment contract and nothing in this Agreement shall be deemed to create in any way whatsoever any obligation on the part of Director to remain in the service of the Company in any capacity, or of the Company to continue Director’s service in any capacity.

5.2    Further Assurances.  The parties agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

5.3    Entire Agreement.  This Agreement, including any exhibits, is the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior oral and written understandings of the parties.

5.4    Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware as applied to contracts between Delaware residents to be wholly performed within the State of Delaware.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.
	
					
	DIRECTOR
	 
	HESKA CORPORATION

	 
	 
	 
	a Delaware corporation

	 
	 
	 
	 
	 

	 
	 
	By:
	 

	 
	 
	 
	Title:
	 

	Address
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

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Attachment 1

ASSIGNMENT SEPARATE FROM CERTIFICATE

FOR VALUE RECEIVED, I, _____________________, hereby sell, assign and transfer unto ______________________________________(______) shares of the Common Stock of Heska Corporation, standing in my name on the books of said corporation represented by Certificate No.         herewith and do hereby irrevocably constitute and appoint    
                                             to transfer said stock on the books of the within-named corporation with full power of substitution in the premises.

Dated:                 , 20    .
	
			
	 
	Signature:
	 

This Assignment Separate from Certificate was executed in conjunction with the terms of a Restricted Stock Grant Agreement between the above assignor and Heska Corporation, dated __________ __, 20__.

		
	Instruction:
	Please do not fill in any blanks other than the signature line.Exhibit

Exhibit 10.11

Heska Corporation 2003 Equity Incentive Plan
Stock Option Agreement
(employees and consultants)
	
		
	Tax Treatment
	This option is intended to be an incentive stock option under section 422 of the Internal Revenue Code or a nonstatutory option, as provided in the Notice of Stock Option Grant.  To the extent this option is designated an incentive stock option and it does not qualify as an incentive stock option and it does not qualify as an incentive stock option under applicable laws, it will be treated as a nonstatutory option.

	Vesting/
Exercisability
	This option vests and becomes exercisable in installments, as shown in the Notice of Stock Option Grant.  In addition, in the event your service as an Employee, Director or Consultant terminates because of your death or Disability, your option shall become fully vested and exercisable as to the total number of shares subject thereto immediately upon the date of your death or your Termination of Service, as applicable.  
Except as otherwise provided below following a Change in Control, no additional shares become vested after your Termination of Service and the option shall terminate as to any shares that are unvested as of the end of business on the date of your Termination of Service.

	Term
	This option expires in any event at the close of business at Company headquarters on the day before the 10th anniversary of the Date of Grant, as shown in the Notice of Stock Option Grant.  (It will expire earlier if your service terminates, as described below.)

	Regular Termination
	In the event of your Termination of Service for any reason except death or Disability, then this option will expire as to unexercised vested option shares at the close of business at Company headquarters on the date three months after your termination date.  The Company determines when your service terminates for this purpose.

	Death
	In the event of your Termination of Service because of your death or your death within three months after your Termination of Service, then this option will expire as to unexercised vested option shares at the close of business at Company headquarters on the date one year after your date of death.

	Disability
	In the event of your Termination of Service because of your Disability, then this option will expire as to unexercised vested option shares at the close of business at Company headquarters on the date one year after your termination date.

	Leaves of Absence
	Vesting of this option shall be suspended during any unpaid leave of absence unless continued vesting is required by the terms of the leave or by applicable law.  

	
		
	Change in Control
	This option shall vest and become exercisable in full if (i) the Company is subject to a Change in Control, (ii) this option is not continued by the Company and (iii) this option is not either assumed by the surviving corporation or its parent or substituted for by the surviving corporation's or its parent's issuing its own option in replacement of this option.  This option shall vest and become exercisable in full if (i) the Company is subject to a Change in Control and (ii) a Termination of Service for you is triggered either (i) without Cause as part of an agreement which contemplated such Change in Control or (ii) without your consent and without Cause.   If the surviving corporation or its parent demotes you to a lower position, materially reduces your authority or responsibilities, materially reduces your total compensation or announces its intention to relocate your principal place of work by more than 20 miles, then that action shall be treated as triggering a Termination of Service under this Agreement.  For the avoidance of doubt, a refusal by the surviving corporation or its parent to extend a consulting engagement beyond its current term shall not be deemed to trigger any option to vest and become immediately exercisable under this Agreement.
“Cause” shall mean (i) your failure to perform your assigned duties or responsibilities as an Employee, Director or Consultant (other than a failure resulting from death or Disability) after notice thereof from the surviving corporation or its parent describing your failure to perform such duties or responsibilities; (ii) your material breach of any confidentiality agreement or invention assignment between you and the Company or a Subsidiary; (iii) your engaging in any act of dishonesty, fraud, misrepresentation, moral turpitude, or misappropriation of material property that was or is materially injurious to the Company or its Affiliates; (iv) your violation of any federal or state regulation applicable to the Company’s business; or (v) your being convicted of, or entering a plea of nolo contendere to, any crime.

	Restrictions on Exercise
	The Company will not permit you to exercise this option if the issuance of shares at that time would violate any law or regulation, and the Company will have no liability for failure to issue or deliver any shares upon exercise of this option if the issuance or delivery would violate any law or regulation as determined by the Company in consultation with its legal counsel.  This option may not be exercised for a fraction of a share.

	Notice of Exercise
	When you wish to exercise this option, you must notify the Company by filing the proper “Notice of Exercise” form at the address given on the form.  Your notice must specify how many shares you wish to purchase.  The exercise will be effective when the Company receives the Notice of Exercise with the option exercise payment described herein.
If someone else wants to exercise this option after your death, that person must prove to the Company's satisfaction that he or she is entitled to do so.

	
		
	Form of Payment
	When you submit your notice of exercise, you must include payment of the option exercise price for the shares you are purchasing.  Payment may be made in one (or a combination of two or more) of the following forms:
● Cash, check or wire transfer.

● Certificates for shares of Company stock that you own, along with any forms needed to affect a transfer of those shares to the Company.  The value of the shares, determined as of the effective date of the option exercise, will be applied to the option exercise price. However, the Company may restrict your ability to surrender shares of Company stock (including your ability to surrender any particular shares of Company Stock held by you) in payment of the exercise price if your doing so would result in the Company's recognizing additional compensation expense with respect to this option for financial reporting purposes.

● Irrevocable directions to a securities broker approved by the Company to sell all or part of your option shares and to deliver to the Company proceeds from the sale in an amount sufficient to pay the option exercise price and any withholding taxes.  (The balance of the sale proceeds, if any, will be delivered to you.)  The directions must be given by signing a special “Notice of Exercise” form provided by the Company.

	Withholding
Taxes and Stock Withholding
	You will not be allowed to exercise this option unless you make arrangements acceptable to the Company to pay any withholding taxes that may be due as a result of the option exercise.  These arrangements may include (with the Company’s approval) withholding shares of Company stock that otherwise would be issued to you when you exercise this option.  The value of these shares, determined as of the effective date of the option exercise, will be applied to the withholding taxes.

	Restrictions on Resale
	By signing this Agreement, you agree not to sell any option shares at a time when applicable laws, Company policies or an agreement between the Company and its underwriters prohibit a sale.  This restriction will apply as long as you are an Employee, Consultant or Director.

	Transfer of Option
	Prior to your death, only you may exercise this option.  You cannot sell, transfer, pledge or assign this option.  For instance, you may not sell this option or use it as security for a loan.  You may, however, dispose of this option in your will, by the laws of descent and distribution or through a beneficiary designation.
Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your former spouse, nor is the Company obligated to recognize your former spouse's interest in your option in any other way. 

	
		
	Retention Rights
	Neither your option nor this Agreement gives you the right to be employed or otherwise retained by the Company in any capacity.  The Company reserves the right to terminate your service at any time, with or without cause.

	Stockholder Rights
	You, or your estate or heirs, have no rights as a stockholder of the Company until you have exercised this option by giving the required notice to the Company and paying the exercise price.

	Applicable Law
	This Agreement will be interpreted and enforced under the laws of the State of Delaware (without giving effect to its conflict of laws provisions).

	The Plan and Other Agreements
	The Amended and Restated 2003 Equity Incentive Plan (the “Plan”) is incorporated in this Agreement by reference.  Unless otherwise defined herein, all capitalized terms herein have the same defined meanings as in the Plan.  In the event of any conflict between the terms and provisions of the Plan and this Agreement, the Plan terms and provisions shall govern.
This Agreement and the Plan constitute the entire understanding between you and the Company regarding this option.  Any prior agreements, commitments or negotiations concerning this option are superseded.  This Agreement may be amended only by another written agreement, signed by both parties.

By signing the notice of stock option grant of this Agreement, you agree to all of the terms and conditions described above and in the Plan.

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