SEC Contract Filing

Filing Date: 2019-03-07

Document Content:
<DOCUMENT>
<TYPE>EX-10.7
<SEQUENCE>8
<FILENAME>exhibit107q42018.htm
<DESCRIPTION>EXHIBIT 10.7
<TEXT>
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<div><a name="sD1463249677DA8A3C5A5EE287F5DDCB9"></a></div><div><div style="line-height:120%;text-align:right;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Exhibit 10.7</font></div></div><div><br></div><div style="line-height:144%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Heska Corporation Stock Incentive Plan (the &#8220;Plan&#8221;)</font></div><div style="line-height:144%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Stock Option Agreement (this &#8220;Agreement&#8221;)</font></div><div style="line-height:144%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">(Outside Directors)</font></div><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="2"></td></tr><tr><td style="width:22%;"></td><td style="width:78%;"></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:2px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Award</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-top:2px;text-align:justify;padding-left:10px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">This Award consists of an Option to purchase the number of Common Shares set forth on the Notice of Stock Option Grant, to which this Agreement is attached, at the Exercise Price per Common Share stated therein, which is not less than one-hundred percent (100%) of the Fair Market Value per Common Share on the Date of Grant (as defined in the Notice of Stock Option Grant).</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:2px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Tax Treatment</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:10px;"><div style="text-align:justify;padding-left:10px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">This Option is intended to be a nonstatutory option.</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-top:2px;padding-left:2px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Vesting/</font></div><div style="padding-top:2px;padding-left:2px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Exercisability</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-top:2px;text-align:justify;padding-left:10px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">This Option vests and becomes exercisable as set forth in the Notice of Stock Option Grant. In addition, this Option shall vest and become exercisable in full if one of the following events occurs:</font></div><div style="text-align:justify;padding-left:58px;text-indent:-24px;font-size:12pt;"><font style="font-family:inherit;font-size:11pt;">&#8226;</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;">Your service as an Outside Director of the Company or a Subsidiary terminates due to your death, Disability, or retirement at or after age 65;</font></div><div style="text-align:justify;padding-left:58px;text-indent:-24px;font-size:12pt;"><font style="font-family:inherit;font-size:11pt;">&#8226;</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;">While you are an Outside Director of the Company or a Subsidiary, a Change in Control is consummated, this Option is not continued by the Company and is not assumed by the surviving corporation or its parent, and the surviving corporation or its parent does not substitute its own option for this Option on no less favorable economic terms; or</font></div><div style="text-align:justify;padding-left:58px;text-indent:-24px;font-size:12pt;"><font style="font-family:inherit;font-size:11pt;">&#8226;</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;">While you are an Outside Director, a Change in Control is consummated and your service is terminated without Cause in connection with or following such Change in Control.</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:2px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Termination of Service</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:10px;"><div style="text-align:justify;padding-left:10px;font-size:12pt;"><font style="font-family:inherit;