Document:

exv10w53

Exhibit 10.53

SUMMARY OF AMENDMENT NUMBER 2 TO

AMERICAN PHYSICIANS CAPITAL, INC.

INCENTIVE COMPENSATION PLAN AS OF MARCH 2007

Adopted May 9, 2008 (Effective January 1, 2008)

     Notwithstanding any other provision in the Incentive Compensation Plan to the contrary, no
bonuses shall be paid under the Incentive Compensation Plan to the Company’s executive officers in
years following a fiscal year in which the Company incurs a net loss except to the extent that the
Company subsequently has cumulative net earnings that offset such net loss. The operation of this
modification is best illustrated by the following example:

Assumptions: The Company incurs a loss of $25 million in year 1 and has net
income of $10 million in each of years 2, 3 and 4.

Outcome: Executive officers would not be entitled to a bonus in years 2 and
3 and the modified ROE-based bonus amount in year 4 would be calculated using $5
million as the net income figure (the amount by which cumulative earnings in the
years following year 1 exceed the amount of the loss in year 1).

The Amendment is effective as of January 1, 2008.EX-10.11

EXHIBIT 10.11

Pet DRx Corporation Annual Incentive Plan

Summary of Material Terms

The Board of Directors (the “Board”) of Pet DRx (the “Company”) established the Pet DRx Annual
Incentive Plan (the “Plan”). The Plan has been designed to serve as an incentive for selected
employees of the Company to improve corporate performance by providing each participating employee
with an opportunity to receive a cash bonus payment based upon the attainment of certain
performance criteria, and thus motivating such employees to stimulate the Company’s overall growth
and success.

Eligible Employees; Participation in the Plan. Present and future senior executive
officers and bonus eligible corporate associates of the Company and its subsidiaries are eligible
to participate in the Plan. The Board of Directors (the “Board”) will designate employees as
participants in the Plan and will also establish each participant’s target bonus percentage under
the Plan.

Annual Incentive Awards. Annual incentive awards will be expressed as a percentage of a
participant’s base salary. A participant may earn more or less than the target annual incentive
award, depending on Company performance.

Performance Goals. Each year, the Board will establish the performance targets for the
relevant year. The Board currently expects that the performance targets under the Plan will be
based on the achievement of certain EBITDA (earnings before interest, taxes, depreciation and
amortization) levels. The Board will establish threshold and target EBITDA levels for each year.
If the target EBITDA level is achieved, each participant will be entitled to receive his or her
target annual incentive amount and if the threshold level is not achieved, no bonuses will be paid
under the Plan (unless the Board, in its sole discretion, determines otherwise). If the target
EBITDA level is exceeded, each participant will be entitled to receive an annual incentive award in
excess of the target award. Achievement of performance between the threshold and target levels and
above the target level will result in a bonus payment that is calculated based on the actual level
of EBITDA achieved. The Board retains the discretion to base annual incentive awards under the
Plan on performance metrics other than EBITDA.

Payment of Annual Incentive Awards; Other Terms and Conditions. Annual incentive awards
will be paid in cash as soon as practicable after the Board determines whether the applicable
performance goals have been met and following the completion of audited financial statements for
the calendar year to which the award relates. The Board will determine the terms and conditions of
each annual incentive award granted under the Plan.EX-10.12

EXHIBIT 10.12

Pet DRx Corporation 2008 Non-Employee Director Compensation Program

The Board of Directors (the “Board”) of Pet DRx Corporation (the “Company”) adopted the Company’s
2008 Non-Employee Director Compensation Program (the “Director Program”) upon the recommendation of
the Compensation Committee of the Board. Under the Director Program, the Company will compensate
members of the Board who are not employees of the Company or its subsidiaries for their service on
the Board and its committees as follows. Each non-employee director will receive a grant of an
option to purchase 65,000 shares of Company common stock upon his or her appointment to the Board,
which will generally vest on the one-year anniversary of the date of grant. On an annual basis,
each non-employee director will receive a grant of an option to purchase 16,000 shares of Company
common stock, which will be vested upon grant. Additionally, on an annual basis, the Chairman of
the Board will receive a grant of an option to purchase 20,000 shares of Company common stock, the
Chair of the Audit Committee will receive an option to purchase 12,000 shares and the Chairs of the
Compensation Committee, the Nominating and Corporate Governance Committee and the Acquisition
Committee will each receive an option to purchase 8,000 shares. These options will be vested upon
grant. All options granted will have a term of ten years, subject to earlier termination upon a
director’s termination of service with the Company. Non-employee directors will also be entitled
to be reimbursed for expenses incurred in connection with Board and committee meetings. No other
compensation will be paid or provided to the Company’s non-employee directors.EX-10.13

EXHIBIT 10.13

NON-QUALIFIED STOCK OPTION AWARD

PURSUANT TO THE 2007 PET DRx CORPORATION

STOCK INCENTIVE PLAN

     THIS AWARD is made as of the Grant Date, by Pet DRx Corporation (the “Company”) to
_______________ (the “Optionee”). Upon and subject to the Terms and Conditions
attached hereto and incorporated herein by reference, the Company hereby awards as of the Grant
Date to Optionee a non-qualified stock option (the “Option”), as described below, to purchase the
Option Shares.

	A.	 	Grant Date: ____________.
	 
	B.	 	Type of Option: Non-Qualified Stock Option.
	 
	C.	 	Plan (under which Option is granted): 2007 Pet DRx Corporation Stock Incentive Plan.
	 
	D.	 	Option Shares: _________ shares of the Company’s common stock (the “Common Stock”), subject to
adjustment as provided in the attached Terms and Conditions.
	 
	E.	 	Exercise Price: $_________ per share, subject to adjustment as provided in the attached Terms
and Conditions. The Exercise Price is not less than 100% of the Fair Market Value of a share
of Common Stock on the Grant Date.
	 
	F.	 	Option Period: The Option may be exercised only during the Option Period which commences on
the Grant Date and ends on the earliest of:

	 	(i)	 	the tenth (10th) anniversary of the Grant Date;
	 
	 	(ii)	 	three (3) months following the date the Optionee ceases to serve as a director of
the Company (as defined in the Plan) for any reason other than death, Disability
(defined in the Plan) or
	 
	 	(iii)	 	twelve (12) months following the date the Optionee ceases to serve as a director
of the Company due to death or Disability.
	 
	 	 	 	Notwithstanding the foregoing, the Option shall cease to be exercisable upon the date the
Optionee ceases to serve as a director of the Company due to his/her removal from the board of
directors of the Company for Cause (as defined in the attached Terms and Conditions and the
Plan).
	 
	 	 	 	The Option may only be exercised as to the vested Option Shares determined pursuant to the
Vesting Schedule. Note that other restrictions to exercising the Option, as described in the
attached Terms and Conditions and the Plan, may apply.

	G.	 	Vesting Schedule: The Option shall become vested in accordance with the vesting schedule
attached hereto as Schedule 1. Any portion of the Option which is not vested at the time
Optionee ceases service as a director with the Company shall be forfeited to the Company with
no consideration due to the Optionee.

 

 

IN WITNESS WHEREOF, the Optionee and the Company have executed and sealed this Award as of the
Grant Date set forth above.

	 	 	 	 	 
	OPTIONEE

	 	PET DRx CORPORATION
	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	Gene E. Burleson
	 

	 	Title:
	 	Chairman of the Board of Directors

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TERMS AND CONDITIONS TO THE

NON-QUALIFIED STOCK OPTION AWARD

PURSUANT TO THE

2007 PET DRx CORPORATION STOCK INCENTIVE PLAN

     1. Exercise of Option. Subject to the provisions provided herein or in the Award made
pursuant to the 2007 Pet DRx Corporation Stock Incentive Plan;

     (a) the Option may be exercised with respect to all or any portion of the vested Option
Shares at any time during the Option Period by the delivery to the Company, at its principal
place of business, of (i) a written notice of exercise in substantially the form attached
hereto as Exhibit 1, which shall be actually delivered to the Company at least ten (10) days
prior to the date upon which Optionee desires to exercise all or any portion of the Option
(unless such prior notice is waived by the Company, in which case the notice shall be
delivered at such time before the exercise as may be required by the Company) and (ii)
payment to the Company of the Exercise Price multiplied by the number of shares
being purchased (the “Purchase Price”) in the manner provided in Subsection (b). Upon
acceptance of such notice and receipt of payment in full of the Purchase Price and any tax
withholding liability, the Company shall cause to be issued a certificate representing the
Option Shares purchased.

     (b) The Purchase Price shall be paid in full upon the exercise of an Option and no
Option Shares shall be issued or delivered until full payment therefor has been made.
Payment of the Purchase Price for all Option Shares purchased pursuant to the exercise of an
Option shall be made in cash, certified check, or, alternatively, as follows:

     (i) by delivery to the Company of a number of shares of Common Stock having a
Fair Market Value, as determined under the Plan, on the date of exercise either
equal to the Purchase Price or in combination with cash to equal the Purchase Price;
or

     (ii) if permitted by the Committee (defined in the Plan) at the time of
exercise, by receipt of the Purchase Price in cash from a broker, dealer or other
“creditor” as defined by Regulation T issued by the Board of Governors of the
Federal Reserve System following delivery by the Optionee to the Committee (defined
in the Plan) of instructions in a form acceptable to the Committee regarding
delivery to such broker, dealer or other creditor of that number of Option Shares
with respect to which the Option is exercised.

     2. Withholding. The Optionee must satisfy his federal, state, and local, if any,
withholding taxes imposed by reason of the exercise of the Option either by paying to the Company
the full amount of the withholding obligation (i) in cash; (ii) by tendering shares of Common Stock
having a Fair Market Value equal to the withholding obligation; (iii) by electing, irrevocably and
in writing, to have the smallest number of whole shares of Common Stock withheld by the Company
which, when multiplied by the Fair Market Value of the Common Stock as of the date the Option is
exercised, is sufficient to satisfy the amount of withholding tax; or (iv) by any combination of
the above.

     3. Rights as Shareholder. Until the stock certificates reflecting the Option Shares
accruing to the Optionee upon exercise of the Option are issued to the Optionee, the Optionee shall
have no rights as a shareholder with respect to such Option Shares. The Company shall make no
adjustment for any dividends or distributions or other rights on or with respect to Option Shares
for which the record date is prior to the issuance of that stock certificate, except as the Plan or
this Award otherwise provides.

     4. Restriction on Transfer of Option and Option Shares. The Option evidenced hereby
is nontransferable other than by will or the laws of descent and distribution, and shall be
exercisable during the

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lifetime of the Optionee only by the Optionee (or in the event of his disability, by his legal
representative) and after his death, only by legal representative of the Optionee’s estate.

     5. Changes in Capitalization.

     (a) The number of Option Shares and the Exercise Price shall be proportionately
adjusted for nonreciprocal transactions between the Company and the holders of capital stock
of the Company that causes the per share value of the shares of Common Stock underlying the
Option to change, such as a stock dividend, stock split, spinoff, rights offering, or
recapitalization through a large, nonrecurring cash dividend (each, an “Equity
Restructuring”).

     (b) In the event of a merger, consolidation, extraordinary dividend, sale of
substantially all of the Company’s assets or other material change in the capital structure
of the Company, or a tender offer for shares of Common Stock, or a Change in Control, that
in each case is not an “Equity Restructuring,” the Committee shall take such action to make
such adjustments in the Option or the terms of this Award as the Committee, in its sole
discretion, determines in good faith is necessary or appropriate, including, without
limitation, adjusting the number and class of securities subject to the Option, with a
corresponding adjustment in the Exercise Price, substituting a new option to replace the
Option, accelerating the termination of the Option Period or terminating the Option in
consideration of a cash payment to the Optionee in an amount equal to the excess of the then
Fair Market Value of the Option Shares over the aggregate Exercise Price of the Option
Shares. Any determination made by the Committee pursuant to this Section 5(b) will be final
and binding on the Optionee. Any action taken by the Committee need not treat all optionees
equally.

     (c) The existence of the Plan and this Award shall not affect in any way the right or
power of the Company to make or authorize any adjustment, reclassification, reorganization
or other change in its capital or business structure, any merger or consolidation of the
Company, any issue of debt or equity securities having preferences or priorities as to the
Common Stock or the rights thereof, the dissolution or liquidation of the Company, any sale
or transfer of all or any part of its business or assets, or any other corporate act or
proceeding.

     6. Special Limitations on Exercise. Any exercise of the Option is subject to the
condition that if at any time the Committee, in its discretion, shall determine that the listing,
registration or qualification of the shares covered by the Option (including, but not limited to,
on a Form S-8 Registration Statement) upon any securities exchange or under any state or federal
law is necessary or desirable as a condition of or in connection with the delivery of shares
thereunder, the delivery of any or all shares pursuant to the Option may be withheld unless and
until such listing, registration or qualification shall have been effected. The Optionee shall
deliver to the Company, prior to the exercise of the Option, such information, representations and
warranties as the Company may reasonably request in order for the Company to be able to satisfy
itself that the Option Shares being acquired in accordance with the terms of an applicable
exemption from the securities registration requirements of applicable federal and state securities
laws.

     7. Legend on Stock Certificates. Certificates evidencing the Option Shares, to the
extent appropriate at the time, shall have noted conspicuously on the certificates a legend
intended to give all persons full notice of the existence of the conditions, restrictions, rights
and obligations set forth in this Award and in the Plan.

     8. Governing Laws. This Award shall be construed, administered and enforced according
to the laws of the State of Delaware; provided, however, no option may be exercised except, in the
reasonable judgment of the Board of Directors, in compliance with exemptions under applicable state
securities laws of the state in which the Optionee resides, and/or any other applicable securities
laws.

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     9. Successors. This Award shall be binding upon and inure to the benefit of the
heirs, legal representatives, successors and permitted assigns of the parties.

     10. Notice. Except as otherwise specified herein, all notices and other
communications under this Award shall be in writing and shall be deemed to have been given if
personally delivered or if sent by registered or certified United States mail, return receipt
requested, postage prepaid, addressed to the proposed recipient at the last known address of the
recipient. Any party may designate any other address to which notices shall be sent by giving
notice of the address to the other parties in the same manner as provided herein.

     11. Severability. In the event that any one or more of the provisions or portion
thereof contained in this Award 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 Award, and this Award shall be construed as if the invalid, illegal or
unenforceable provision or portion thereof had never been contained herein.

     12. Entire Agreement. Subject to the terms and conditions of the Plan, this Award
expresses the entire understanding and agreement of the parties relating to the subject matter
hereof.

     13. Violation. Except as provided in Section 4, any transfer, pledge, sale,
assignment, or hypothecation of the Option or any portion thereof shall be a violation of the terms
of this Award and shall be void and without effect.

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

     15. Specific Performance. In the event of any actual or threatened default in, or
breach of, any of the terms, conditions and provisions of this Award, the party or parties who are
thereby aggrieved shall have the right to specific performance and injunction in addition to any
and all other rights and remedies at law or in equity, and all such rights and remedies shall be
cumulative.

     16. No Right to Continued Service. Neither the establishment of the Plan nor the
award of Option Shares hereunder shall be construed as giving the Optionee the right to a continued
employment or other service relationship with the Company.

     17. Definitions. As used in these Terms and conditions and this Award,

     (a) “Cause” means “Cause” as defined in any agreement between the Optionee and
the Company or an Affiliate, or if no such definition or agreement exists, “Cause” means
(i) willful and continued failure (other than such failure resulting from his incapacity
during physical or mental illness) by the Optionee to substantially perform his duties with
the Company or an Affiliate; (ii) willful misconduct by the Optionee; (iii) gross negligence
by the Optionee causing material harm to the Company or an Affiliate; (iv) any act by the
Optionee of fraud, misappropriation, dishonesty or embezzlement; (v) commission by the
Optionee of a felony or any other crime involving moral turpitude or dishonesty; or (vi)
illegal drug use.

     (b) “Change in Control” means (i) the sale of all, or substantially all, of the
Company’s assets in any single transaction or series of related transactions; (ii) the
acquisition by any person, entity or group within the meaning of Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended, of Common Stock possessing a majority of the
ordinary voting power to elect directors of the Company; or (iii) any merger or
consolidation of the Company with or into another corporation (regardless of which entity is
the surviving corporation) if, after giving effect to such merger or consolidation the
holders of the Company’s voting securities immediately prior to the merger or consolidation
own, directly or indirectly, voting securities of the surviving or resulting corporation

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representing less than a majority of the ordinary voting power to elect directors of the
surviving or resulting corporation.

     (c) Other capitalized terms that are not defined herein have the meaning set forth in
the Plan, except where the context does not reasonably permit.

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SCHEDULE 1

VESTING SCHEDULE

OF THE NON-QUALIFIED STOCK OPTION AWARD

ISSUED PURSUANT TO THE

2007 PET DRx CORPORATION

STOCK INCENTIVE PLAN

Vesting Schedule

	{A.	 	The Option shall become vested in full on January 4, 2009; provided the Optionee continually
serves on the board of directors through such date.
	 
	  B.	 	Notwithstanding the foregoing, the Option Shares shall become fully vested and exercisable
upon the effective date of a Change in Control. }1
	 
	{A.	 	The Option vests in full on date of grant.}2

1 Vesting schedule for Initial Stock Option Award.

2 Vesting schedule for Annual Stock Option Award.

Schedule 1

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