Document:

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Exhibit 10.01

OCEANEERING INTERNATIONAL, INC. 2006 ANNUAL CASH BONUS AWARD PROGRAM

On March 20, 2006, the Compensation Committee of the Board of Directors (the “Compensation
Committee”) of Oceaneering International, Inc. (the “Company) approved the 2006 Annual Cash Bonus
Award Programs for (a) Named Executive Officers in the cash compensation table of the Company’s
2006 proxy statement (“NEOs”) and (b) all other participating employees, each under the 2005
Incentive Plan of the Company. In the case of NEOs, cash bonuses are based on the level of
achievement of net income for the Company in 2006 (“Net Income”) as compared to planned results
approved by the Compensation Committee (100% of award). In the case of all other participating
employees: (a) with respect to corporate employee participants, cash bonuses are based upon level
of achievement as compared to planned results of: (i) Net Income (70% of award) and (ii) Individual
Goals (30% of award), (b) with respect to profit center executives, cash bonuses are based on the
level of achievement as compared to planned results of: (i) Net Income (50% of award), and (ii)
goals of the executive’s profit center (50% of award), which profit center percentage amount is
comprised of the level of achievement as compared to planned results of the following: operating
income of the profit center (50%), HSE goals (20%), and objectives for the profit center (30%), and
(c) for all other participating employees, based upon the level of achievement as compared to
planned results of: (i) Net Income (20% of award), (ii) goals of the participant’s profit center
(50%, which is comprised of the same elements as for profit center executives), and (iii)
Individual Goals (30%).

For each participant, the maximum cash award achievable is a percentage approved by the
Compensation Committee of the participant’s annual base salary as of March 1, 2006. For NEOs, that
percentage ranges from 100%-125%, and for all other employees, the percentage ranges from 10%-80%.
A participant must be employed by the Company or a subsidiary at the time the cash awards are
approved for payment by the Compensation Committee to receive a cash award. Payment of any cash
awards under the 2006 Annual Cash Bonus Award Program shall be made no later than March 15, 2007.exv10w1

 

Exhibit 10.1

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     THIS
FIRST AMENDMENT TO AMENDED AND RESTATED
CREDIT AGREEMENT (this “Amendment”),
dated as of May 3, 2006, is among SESI,
L.L.C., as Borrower, SUPERIOR ENERGY
SERVICES, INC., as Parent, JPMORGAN
CHASE BANK, N.A., as Agent (the
“Agent”), WELLS FARGO BANK, N.A., as
Syndication Agent, WHITNEY NATIONAL
BANK, as Documentation Agent, and the
other Lenders party hereto, who agree as
follows:

RECITALS

     A. The Borrower, Agent and Lenders have heretofore executed an Amended and Restated Credit
Agreement dated as of October 31, 2005 (as amended, the “Credit Agreement”).

     B. The Borrower has requested that the Lenders permit the Borrower to refinance certain
existing senior unsecured Funded Indebtedness and to incur additional senior unsecured Funded
Indebtedness of up to an aggregate principal amount of $300,000,000.

     C. The Agent and Lenders are willing to accept the Borrower’s request on the terms and
conditions set forth below.

     D. Capitalized terms used herein, and not otherwise defined herein, shall have the meanings
defined in the Credit Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants and undertakings, the parties hereby
agree as follows:

ARTICLE 1

AMENDMENTS TO THE CREDIT AGREEMENT

     1.1 Sections 6.11 (Indebtedness) of the Credit Agreement is hereby amended to substitute the
following Clause (vi) for the existing Clause (vi), to read as follows:

	 	(vi)	 	Obligations represented by the Borrower’s senior notes due not sooner than
December 31, 2013, with an interest rate not to exceed 9% per annum, up to the
aggregate principal amount of $300,000,000.

     1.2 Except as specifically amended hereby, all of the remaining terms and conditions of the
Credit Agreement remain in full force and effect.

     1.3 This Amendment shall become effective upon the Borrower’s refinancing of the Funded
Indebtedness described in existing Section 6.11 (vi) of the Credit Agreement, provided such
refinancing occurs not later than August 31, 2006. If such refinancing does not occur by August
31, 2006 (unless extended by the Lenders in writing), this Amendment shall become null and void.

 

 

ARTICLE 2

ACKNOWLEDGMENT OF COLLATERAL

     2.1 Borrower hereby specifically reaffirms all of the Collateral Documents.

ARTICLE 3

MISCELLANEOUS

     3.1 This Amendment may be executed in any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one in the same instrument. This
Amendment shall be effective as of the date first written above upon execution by the Borrower,
Parent and the Required Lenders.

[Rest of page intentionally blank]

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     IN WITNESS WHEREOF, the Borrower, the Agent and the Lenders have executed this Agreement as of
the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	BORROWER:	 	 	 	SESI, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Superior Energy Services, Inc.	 	 
	 	 	 	 	 	 	Member Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Robert S. Taylor
 

	 	 
	 

	 	 	 	 	 	Name:
	 	Robert S. Taylor	 	 
	 

	 	 	 	 	 	Title:
	 	Chief Financial Officer	 	 

	 	 	 	 	 	 	 
	PARENT:	 	SUPERIOR ENERGY SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert S. Taylor
 

Name: Robert S. Taylor
	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	AGENT AND LENDER:	 	JPMORGAN CHASE BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven D. Nance
 

Name: Steven D. Nance
	 	 
	 

	 	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	SYNDICATION AGENT AND LENDER:	 	WELLS FARGO BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	DOCUMENTATION AGENT AND LENDER:	 	WHITNEY NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Hollie L. Ericksen
 

Name: Hollie L. Ericksen
	 	 
	 

	 	 	 	Title: Vice President	 	 

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	LENDERS:	 	PNC BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kay Snyder
 

Name: Kay Snyder
	 	 
	 

	 	 	 	Title: Relationship Manager	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF SCOTLAND	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Karen Weich
 

Name: Karen Weich
	 	 
	 

	 	 	 	Title: Assistant Vice President	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NATEXIS BANQUES POPULAIRES	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Louis P. Laville, III
 

Name: Louis P. Laville, III
	 	 
	 

	 	 	 	Title: Vice President and Group Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Donovan C. Broussard
 

Name: Donovan C. Broussard
	 	 
	 

	 	 	 	Title: Vice President and Group Manager	 	 
	 
	 	 	 	 	 	 
	 	 	CAPITAL ONE, NATIONAL ASSOCIATION	 	 
	 	 	(formerly known as Hibernia National Bank)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John Castellano
 

Name: S. John Castellano
	 	 
	 

	 	 	 	Title: Senior Vice President	 	 

- 4 -exv4w1

 

Exhibit 4.1

VCA ANTECH, INC.

2006 EQUITY INCENTIVE PLAN

     1. Purpose; Eligibility.

          1.1 General Purpose. The name of this plan is the VCA Antech, Inc. 2006 Equity
Incentive Plan (the “Plan”). The purpose of the Plan is to enable VCA Antech, Inc., a Delaware
corporation (the “Company”), and any Affiliate to obtain and retain the services of the types of
Employees, Consultants and Directors who will contribute to the Company’s long range success and to
provide incentives that are linked directly to increases in share value which will inure to the
benefit of all stockholders of the Company.

          1.2 Eligible Award Recipients. The persons eligible to receive Awards are the
Employees, Consultants and Directors of the Company and its Affiliates.

          1.3 Available Awards. The purpose of the Plan is to provide a means by which eligible
recipients of Awards may be given an opportunity to benefit from increases in value of the Common
Stock through the granting of one or more of the following Awards: (a) Incentive Stock Options,
(b) Nonstatutory Stock Options, (c) Restricted Awards, (d) Performance Awards and (e) Stock
Appreciation Rights.

     2. Definitions.

          2.1 “409A Award” means an Award that is considered “nonqualified deferred compensation” within
the meaning of Section 409A of the Code and Section 8 of this Plan.

          2.2 “Administrator” means the Board or the Committee appointed by the Board in accordance with
Section 3.5.

          2.3 “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether
now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of
the Code.

          2.4 “Award” means any right granted under the Plan, including an Incentive Stock Option, a
Nonstatutory Stock Option, a Restricted Award, a Performance Award, a Stock Appreciation Right and
a 409A Award.

          2.5 “Award Agreement” means a written agreement between the Company and a holder of an Award
evidencing the terms and conditions of an individual Award grant. Each Award Agreement shall be
subject to the terms and conditions of the Plan.

          2.6 “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5
under the Exchange Act, except that in calculating the beneficial ownership of any particular
“person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” shall be
deemed to have beneficial ownership of all securities that such “person” has the right to acquire
by conversion or exercise of other securities, whether such right is currently
exercisable or is exercisable only after the passage of time. The terms “Beneficially Owns”
and “Beneficially Owned” have a corresponding meaning.

					
	 	 	 	 	 
	 
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          2.7 “Board” means the Board of Directors of the Company.

          2.8 “Cashless Exercise” has the meaning set forth in Section 6.4.

          2.9 “Cause” means, (a) with respect to any Participant who is a party to an employment or
service agreement or employment policy manual with the Company or its Affiliates and such agreement
or policy manual provides for a definition of Cause, as defined therein and (b) with respect to all
other Participants, (i) the commission of, or plea of guilty or no contest to, a felony or a crime
involving moral turpitude or the commission of any other act involving willful malfeasance or
material fiduciary breach with respect to the Company or an Affiliate, (ii) conduct tending to
bring the Company into substantial public disgrace, or disrepute, (iii) gross negligence or willful
misconduct with respect to the Company or an Affiliate or (iv) material violation of state or
federal securities laws. The Administrator, in its absolute discretion, shall determine the effect
of all matters and questions relating to whether a Participant has been discharged for Cause.

          2.10 “Change in Control” shall mean:

               (a) The direct or indirect sale, transfer, conveyance or other disposition (other than by way
of merger or consolidation), in one or a series of related transactions, of all or substantially
all of the properties or assets of the Company to any “person” (as that term is used in Section
13(d)(3) of the Exchange Act);

               (b) The Incumbent Directors cease for any reason to constitute at least a majority of the
Board;

               (c) The adoption of a plan relating to the liquidation or dissolution of the Company; or

               (d) Any “person” or “group” (as such terms are used in Section 13(d) and 14(d) of the Exchange
Act) becomes the Beneficial Owner, directly or indirectly, of securities of the Company
representing more than 35% of the combined voting power of the Company’s then outstanding
securities eligible to vote for the election of the Board (the “Company Voting Securities”); or

               (e) The consummation of a merger, consolidation, statutory share exchange or similar form of
corporate transaction involving the Company or any of its Subsidiaries that requires the approval
of the Company’s stockholders, whether for such transaction or the issuance of securities in the
transaction (a “Business Combination”), unless immediately following such Business Combination: (1)
65% or more of the total voting power of (i) the Surviving Corporation, or (ii) if applicable, the
ultimate Parent Corporation that directly or indirectly has beneficial ownership of 100% of the
voting securities eligible to elect directors of the Surviving Corporation, is represented by
Company Voting Securities that were outstanding immediately prior to such Business Combination (or,
if applicable, is represented by shares into
which such Company Voting Securities were converted pursuant to such Business Combination),
and such voting power among the holders thereof is in substantially the same proportion as the
voting power of such Company Voting Securities among the holders thereof immediately prior to the
Business Combination, (2) no person (other than any employee benefit plan (or related trust)

					
	 	 	 	 	 
	 
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	 	VCA Antech, Inc. 2006 Equity Incentive Plan
	 	 	 	 	 

 

 

sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the
beneficial owner, directly or indirectly, of more than 35% of the total voting power of the
outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there
is no Parent Corporation, the Surviving Corporation) and (3) at least a majority of the members of
the board of directors of the Parent Corporation (or if there is no Parent Corporation, the
Surviving Corporation) following the consummation of the Business Combination were Incumbent
Directors at the time of the Board’s approval of the execution of the initial agreement providing
for such Business Combination (any Business Combination which satisfies all of the criteria
specified in (1), (2) and (3) above shall be deemed to be a “Non-Qualifying Transaction”).

The foregoing notwithstanding, a transaction shall not constitute a Change in Control if (i) 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; (ii) it constitutes a secondary public offering
that results in any security of the Company being listed (or approved for listing) on any
securities exchange or designated (or approved for designation) as a national market security on an
interdealer quotation system; (iii) it constitutes a change in Beneficial Ownership that results
from a change in ownership of an existing stockholder; or (iv) solely because 35% or more of the
total voting power of the Company’s then outstanding securities is acquired by (A) a trustee or
other fiduciary holding securities under one or more employee benefit Plans of the Company or any
Affiliate, or (B) any company which, immediately prior to such Business Combination, is owned
directly or indirectly by the stockholders of the Company in substantially the same proportion as
their ownership of stock in the Company immediately prior to such acquisition.

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

          2.12 “Committee” means a committee of one or more members of the Board appointed by the Board
to administer the Plan in accordance with Section 3.5.

          2.13 “Common Stock” means the common stock, $0.001 par value per share of the Company.

          2.14 “Company” means VCA Antech, Inc., a Delaware corporation.

          2.15 “Consultant” means any person, including an advisor, (a) engaged by the Company or an
Affiliate to render consulting or advisory services and who is compensated for such services or who
provides bona fide services to the Company or an Affiliate pursuant to a written agreement or (b)
who is a member of the Board of Directors of an Affiliate; provided that, except as otherwise
permitted in Section 5.4(b) hereof, such person is a natural person and such services are
not in connection with the offer or
sale of securities in a capital raising transaction and do not directly or indirectly promote
or maintain a market for the Company’s securities.

          2.16 “Continuous Service” means that the Participant’s service with the Company or an
Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. The
Participant’s Continuous Service shall not be deemed to have terminated merely

					
	 	 	 	 	 
	 
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	 	VCA Antech, Inc. 2006 Equity Incentive Plan
	 	 	 	 	 

 

 

because of a change
in the capacity in which the Participant renders service to the Company or an Affiliate as an
Employee, Consultant or Director or a change in the entity for which the Participant renders such
service, provided that there is no interruption or termination of the Participant’s Continuous
Service. For example, a change in status from an Employee of the Company to a Consultant of an
Affiliate or a Director will not constitute an interruption of Continuous Service. The
Administrator or its delegate, in its sole discretion, may determine whether Continuous Service
shall be considered interrupted in the case of any leave of absence approved by that party,
including sick leave, military leave or any other personal or family leave of absence.

          2.17 “Covered Employee” means the chief executive officer and the four other highest
compensated officers of the Company for whom total compensation is or would be required to be
reported to stockholders under the Exchange Act, as determined for purposes of Section 162(m) of
the Code.

          2.18 “Date of Grant” means, provided the key terms and conditions of the Award are
communicated to the Participant within a reasonable period of time following the Administrator’s
action, the date on which the Administrator adopts a resolution, or takes other appropriate action,
expressly granting an Award to a Participant that specifies the key terms and conditions of the
Award and from which the Participant begins to benefit from or be adversely affected by subsequent
changes in the Fair Market Value of the Company Common Stock or, if a different date is set forth
in such resolution, or determined by the Administrator, as the Date of Grant, then such date as is
set forth in such resolution. In any situation where the terms of the Award are subject to
negotiation with the Participant, the Date of Grant shall not be earlier than the date the key
terms and conditions of the Award are communicated to the Participant.

          2.19 “Detrimental Activity” means: (a) violation of the terms of any agreement with the
Company concerning non-disclosure, confidentiality, intellectual property, privacy or exclusivity;
(b) disclosure of the Company’s confidential information to anyone outside the Company, without
prior written authorization from the Company, or in conflict with the interests of the Company,
whether the confidential information was acquired or disclosed by the Participant during or after
employment by the Company; (c) failure or refusal to disclose promptly or assign to the Company all
right, title and interest in any invention, work product or idea, patentable or not, made or
conceived by the Participant during employment by the Company, relating in any manner to the
interests of the Company or, the failure or refusal to do anything reasonably necessary to enable
the Company to secure a patent where appropriate in the United States and in other countries; (d)
activity that is discovered to be grounds for or results in termination of the Participant’s
employment for Cause; (e) any breach of a restrictive covenant contained in any employment
agreement, Award Agreement or other agreement between the Participant and the Company, during any
period for which a restrictive covenant prohibiting Detrimental Activity, or other similar conduct
or act, is applicable to the Participant during or
after employment by the Company; (f) any attempt directly or indirectly to induce any Employee
of the Company to be employed or perform services or acts in conflict with the interests of the
Company; (g) any attempt, in conflict with the interests of the Company, directly or indirectly, to
solicit the trade or business of any current or prospective customer, client, supplier or partner
of the Company; (h) the conviction of, or guilty plea entered by, the Participant for any felony or
a crime involving moral turpitude whether or not connected with the
Company; or (i) the

					
	 	 	 	 	 
	 
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	 	VCA Antech, Inc. 2006 Equity Incentive Plan
	 	 	 	 	 

 

 

the commission
of any other act involving willful malfeasance or material fiduciary breach with respect to the
Company.

          2.20 “Director” means a member of the Board.

          2.21 “Disability” means that the Optionholder is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment; provided, however,
for purposes of determining the term of an Incentive Stock Option pursuant to Section 6.10
hereof, the term Disability shall have the meaning ascribed to it under Code Section 22(e)(3). The
determination of whether an individual has a Disability shall be determined under procedures
established by the Administrator. Except in situations where the Administrator is determining
Disability for purposes of the term of an Incentive Stock Option pursuant to Section 6.10
hereof within the meaning of Code Section 22(e)(3), the Administrator may rely on any determination
that a Participant is disabled for purposes of benefits under any long-term disability plan
maintained by the Company or any Affiliate in which a Participant participates.

          2.22 “Effective Date” shall mean March 7, 2006, the date the Board adopted the Plan.

          2.23 “Employee” means any person employed by the Company or an Affiliate. Mere service as a
Director or payment of a director’s fee by the Company or an Affiliate shall not be sufficient to
constitute “employment” by the Company or an Affiliate.

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

          2.25 “Existing Plans” mean the VCA Antech, Inc. Amended and Restated 1996 Stock Incentive Plan
and the VCA Antech, Inc. 2001 Stock Incentive Plan.

          2.26 “Fair Market Value” means, as of any date, the value of the Common Stock as determined
below. The Fair Market Value on any date on which the Company’s shares of Common Stock are
registered under Section 12 of the Exchange Act and listed on the Nasdaq National Market shall be
the closing price of a share of Common Stock on the Nasdaq National Market on such date, and
thereafter (a) if the Common Stock is admitted to quotation on the over the counter market or any
interdealer quotation system, the Fair Market Value on any given date shall not be less than the
average of the highest bid and lowest asked prices of the Common Stock reported for such date or,
if no bid and asked prices were reported for such date, for the last day preceding such date for
which such prices were reported, (b) if the Common Stock is admitted to trading on a national
securities exchange or the Nasdaq National Market or Nasdaq Small Cap Market, the Fair Market Value
on any date shall not be less than the closing price
reported for the Common Stock on such exchange or system for such date or, if no sales were
reported for such date, for the last date preceding the date on which such a sale was reported or
(c) in the absence of an established market for the Common Stock, the Fair Market Value determined
in good faith by the Administrator and such determination shall be conclusive and binding on all
persons.

          2.27 “Form S-8” has the meaning set forth in Section 5.4(b).

					
	 	 	 	 	 
	 
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	 	VCA Antech, Inc. 2006 Equity Incentive Plan
	 	 	 	 	 

 

 

          2.28 “Free Standing Rights” has the meaning set forth in Section 7.3(a).

          2.29 “Incentive Stock Option” means an Option intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

          2.30 “Incumbent Directors” means individuals who, on the Effective Date, constitute the Board,
provided that any individual becoming a Director subsequent to the Effective Date whose election or
nomination for election to the Board was approved by a vote of at least two-thirds of the Incumbent
Directors then on the Board (either by a specific vote or by approval of the proxy statement of the
Company in which such person is named as a nominee for Director without objection to such
nomination) shall be an Incumbent Director. No individual initially elected or nominated as a
director of the Company as a result of an actual or threatened election contest with respect to
Directors or as a result of any other actual or threatened solicitation of proxies by or on behalf
of any person other than the Board shall be an Incumbent Director.

          2.31 “Listing Date” means the first date upon which any security of the Company is listed (or
approved for listing) upon notice of issuance on any securities exchange or designated (or approved
for designation) upon notice of issuance as a national market security on an interdealer quotation
system.

          2.32 “Market Stand-Off” has the meaning set forth in Section 15.

          2.33 “Nasdaq” means the National Association of Securities Dealers Automated Quotation System,
or any successor thereto.

          2.34 “Non-Employee Director” means a Director who is a “non-employee director” within the
meaning of Rule 16b-3.

          2.35 “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock
Option.

          2.36 “Officer” means (a) before the Listing Date, any person designated by the Company as an
officer and (b) on and after the Listing Date, a person who is an officer of the Company within the
meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

          2.37 “Option” means an Incentive Stock Option or a Nonstatutory Stock Option granted pursuant
to the Plan.

          2.38 “Option Agreement” means a written agreement between the Company and an Optionholder
evidencing the terms and conditions of an individual Option grant. Each Option Agreement shall be
subject to the terms and conditions of the Plan and need not be identical.

          2.39 “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Option.

					
	 	 	 	 	 
	 
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	 	VCA Antech, Inc. 2006 Equity Incentive Plan
	 	 	 	 	 

 

 

          2.40 “Outside Director” means a Director who is an “outside director” within the meaning of
Section 162(m) of the Code and Treasury Regulations Section 1.162-27(e)(3).

          2.41 “Participant” means a person to whom an Award is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Award.

          2.42 “Performance Award” means Awards granted pursuant to Section 7.2.

          2.43 “Permitted Transferee” means (a) any spouse, parents, siblings (by blood, marriage or
adoption) or lineal descendants (by blood, marriage or adoption) of a Participant; (b) any trust or
other similar entity for the benefit of a Participant or the Participant’s spouse, parents,
siblings or lineal descendants; provided, however, that any transfer made by a Participant to a
Permitted Transferee may only be made if the Permitted Transferee, prior to the time of transfer of
stock, agrees in writing to be bound by the terms of this Plan and provides written notice to the
Company of such transfer.

          2.44 “Plan” means this VCA Antech, Inc. 2006 Equity Incentive Plan.

          2.45 “Related Rights” has the meaning set forth in Section 7.3(a).

          2.46 “Restricted Award” means any Award granted pursuant to Section 7.1.

          2.47 “Restricted Period” has the meaning set forth in Section 7.1.

          2.48 “Right of Repurchase” means the Company’s option to repurchase Common Stock acquired
under the Plan upon the Participant’s termination of Continuous Service pursuant to Section
11.7.

          2.49 “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule
16b-3, as in effect from time to time.

          2.50 “Rule 701” has the meaning set forth in Section 5.4(a).

          2.51 “SAR Amount” has the meaning set forth in Section 7.3(h).

          2.52 “SAR exercise price” has the meaning set forth in Section 7.3(b).

          2.53 “Securities Act” means the Securities Act of 1933, as amended.

          2.54 “Stock Appreciation Right” means the right pursuant to an award granted under Section
7.3 to receive an amount equal to the excess, if any, of (A) the Fair Market Value, as of the
date such Stock Appreciation Right or portion thereof is surrendered, of the shares of stock
covered by such right or such portion thereof, over (B) the aggregate SAR exercise price of such
right or such portion thereof.

          2.55 “Stock for Stock Exchange” has the meaning set forth in Section 6.4.

          2.56 “Surviving Entity” means the Company if immediately following any merger, consolidation
or similar transaction, the holders of outstanding voting securities of the

					
	 	 	 	 	 
	 
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	 	VCA Antech, Inc. 2006 Equity Incentive Plan
	 	 	 	 	 

 

 

Company immediately
prior to the merger or consolidation own equity securities possessing more than 50% of the voting
power of the entity existing following the merger, consolidation or similar transaction. In all
other cases, the other entity to the transaction and not the Company shall be the Surviving Entity.
In making the determination of ownership by the stockholders of an entity immediately after the
merger, consolidation or similar transaction, equity securities which the stockholders owned
immediately before the merger, consolidation or similar transaction as stockholders of another
party to the transaction shall be disregarded. Further, outstanding voting securities of an entity
shall be calculated by assuming the conversion of all equity securities convertible (immediately or
at some future time) into shares entitled to vote.

          2.57 “Ten Percent Stockholder” means a person who owns (or is deemed to own pursuant to
Section 424(d) of the Code) stock possessing more than 10% of the total combined voting power of
all classes of stock of the Company or of any of its Affiliates.

     3. Administration.

          3.1 Administration by Board. The Plan shall be administered by the Board unless and
until the Board delegates administration to a Committee, as provided in Section 3.5.

          3.2 Powers of Administrator. The Administrator shall have the power and authority to
select and grant to Participants, Awards pursuant to the terms of the Plan.

          3.3 Specific Powers. In particular, the Administrator shall have the authority: (a)
to construe and interpret the Plan and apply its provisions; (b) to promulgate, amend, and rescind
rules and regulations relating to the administration of the Plan; (c) to authorize any person to
execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;
(d) to delegate its authority to one or more Officers of the Company with respect to awards that do
not involve Covered Employees or “insiders” within the meaning of Section 16 of
the Exchange Act; (e) to determine when Awards are to be granted under the Plan; (f) from time
to time to select, subject to the limitations set forth in this Plan, those Participants to whom
Awards shall be granted; (g) to determine the number of shares of Common Stock to be made subject
to each Award; (h) to determine whether each Option is to be an Incentive Stock Option or a
Nonstatutory Stock Option; (i) to prescribe the terms and conditions of each Award, including,
without limitation, the exercise price and medium of payment, vesting provisions and Right of
Repurchase provisions, and to specify the provisions of the Award Agreement relating to such grant
or sale; (j) to amend any outstanding Awards, including for the purpose of modifying the time or
manner of vesting, or the term of any outstanding Award; provided, however, that if any such
amendment impairs a Participant’s rights or increases a Participant’s obligations under his or her
Award or creates or increases a Participant’s federal income tax liability with respect to an
Award, such amendment shall also be subject to the Participant’s consent (provided, however, a
cancellation of an Award where the Participant receives a payment equal in value to the Fair Market
Value of the vested Award or, in the case of vested Options, the difference between the Fair Market
Value of the Common Stock subject to an Option and the exercise price, shall not constitute an
impairment of the Participant’s rights that requires consent); (k) to determine the duration and
purpose of leaves of absences which may be granted to a Participant without constituting
termination of their employment for purposes of the Plan, which periods shall be no shorter than
the periods generally applicable to Employees under the Company’s employment

					
	 	 	 	 	 
	 
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policies; (l) to make
decisions with respect to outstanding Options that may become necessary upon a change in corporate
control or an event that triggers anti-dilution adjustments; and (m) to exercise discretion to make
any and all other determinations which it determines to be necessary or advisable for
administration of the Plan. The Administrator also may modify the purchase price or the exercise
price of any outstanding Award, provided that if the modification effects a repricing, stockholder
approval shall be required before the repricing is effective.

          3.4 Decisions Final. All decisions made by the Administrator pursuant to the
provisions of the Plan shall be final and binding on the Company and the Participants, unless such
decisions are determined by a court having jurisdiction to be arbitrary and capricious.

          3.5 The Committee.

               (a) General. The Board may delegate administration of the Plan to a Committee or
Committees of one or more members of the Board, and the term “Committee” shall apply to any person
or persons to whom such authority has been delegated. If administration is delegated to a
Committee, the Committee shall have, in connection with the administration of the Plan, the powers
theretofore possessed by the Board, including the power to delegate to a subcommittee any of the
administrative powers the Committee is authorized to exercise (and references in this Plan to the
Board or the Administrator shall thereafter be to the Committee or subcommittee), subject, however,
to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time
to time by the Board. The Board may abolish the Committee at any time and revest in the Board the
administration of the Plan. The members of the Committee shall be appointed by and serve at the
pleasure of the Board. From time to time, the Board may increase or decrease the size of the
Committee, add additional members to, remove members (with or without cause) from, appoint new
members in substitution therefor, and fill vacancies, however caused, in the Committee. The
Committee shall act pursuant to a vote of the majority of its members or, in the case of a
committee
comprised of only two members, the unanimous consent of its members, whether present or not,
or by the written consent of the majority of its members and minutes shall be kept of all of its
meetings and copies thereof shall be provided to the Board. Subject to the limitations prescribed
by the Plan and the Board, the Committee may establish and follow such rules and regulations for
the conduct of its business as it may determine to be advisable.

               (b) Committee Composition when Common Stock is Registered. At such time as the Common
Stock is required to be registered under Section 12 of the Exchange Act, in the discretion of the
Board, a Committee may consist solely of two or more Non-Employee Directors who are also Outside
Directors. The Board shall have discretion to determine whether or not it intends to comply with
the exemption requirements of Rule 16b-3 and/or Section 162(m) of the Code. However, if the Board
intends to satisfy such exemption requirements, with respect to Awards to any Covered Employee and
with respect to any insider subject to Section 16 of the Exchange Act, the Committee shall be a
compensation committee of the Board that at all times consists solely of two or more Non-Employee
Directors who are also Outside Directors. Within the scope of such authority, the Board or the
Committee may (i) delegate to a committee of one or more members of the Board who are not Outside
Directors the authority to grant Awards to eligible persons who are either (A) not then Covered
Employees and are not expected to be Covered Employees at the time of recognition of income
resulting from

					
	 	 	 	 	 
	 
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such Award or (B) not persons with respect to whom the Company wishes to comply with
Section 162(m) of the Code or (ii) delegate to a committee of one or more members of the Board who
are not Non-Employee Directors the authority to grant Awards to eligible persons who are not then
subject to Section 16 of the Exchange Act. Nothing herein shall create an inference that an option
is not validly granted under the Plan in the event Awards are granted under the Plan by a
compensation committee of the Board that does not at all times consist solely of two or more
Non-Employee Directors who are also Outside Directors.

          3.6 Indemnification. In addition to such other rights of indemnification as they may
have as Directors or members of the Committee, and to the extent allowed by applicable law, the
Administrator shall be indemnified by the Company against the reasonable expenses, including
attorney’s fees, actually incurred in connection with any action, suit or proceeding or in
connection with any appeal therein, to which the Administrator may be party by reason of any action
taken or failure to act under or in connection with the Plan or any option granted under the Plan,
and against all amounts paid by the Administrator in settlement thereof (provided, however, that
the settlement has been approved by the Company, which approval shall not be unreasonably withheld)
or paid by the Administrator in satisfaction of a judgment in any such action, suit or proceeding,
except in relation to matters as to which it shall be adjudged in such action, suit or proceeding
that such Administrator did not act in good faith and in a manner which such person reasonably
believed to be in the best interests of the Company, and in the case of a criminal proceeding, had
no reason to believe that the conduct complained of was unlawful; provided, however, that within 60
days after institution of any such action, suit or proceeding, such Administrator shall, in
writing, offer the Company the opportunity at its own expense to handle and defend such action,
suit or proceeding.

     4. Shares Subject to the Plan.

          4.1 Share Reserve. Subject to the provisions of Section 12.1 relating to
adjustments upon changes in Common Stock, the shares that may be issued pursuant to Awards shall
consist of the Company’s authorized but unissued Common Stock, and the maximum aggregate amount of
such Common Stock which may be issued upon exercise of all Awards under the Plan shall not exceed
6,000,000 plus any shares of Common Stock that were reserved under the Existing Plans but not yet
subject to issued awards and any shares of Common Stock underlying awards granted to Employees
prior to the Effective Date under the Existing Plans that have been issued and are outstanding on
the Effective Date that expire, are forfeited or terminate for any reason without having been
exercised in full. As of March 7, 2006, there are 380,000 shares reserved for issuance under the
Existing Plans that are not subject to issued awards and 6,040,274 shares that are reserved for
issuance under outstanding but unexercised awards. All shares reserved for issuance under this
Plan may be used for Incentive Stock Options. Awards for fractional shares of Common Stock may not
be issued under the terms of the Plan.

          4.2 Reversion of Shares to the Share Reserve. If any Award shall for any reason
expire or otherwise terminate, in whole or in part, the shares of Common Stock not acquired under
such Award shall revert to and again become available for issuance under the Plan. If shares of
Common Stock issued under the Plan are reacquired by the Company pursuant to the terms of any
forfeiture provision, including the Right of Repurchase of unvested Common Stock under Section
11.7(a), such shares shall again be available for purposes of the Plan.

					
	 	 	 	 	 
	 
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          4.3 Source of Shares. The shares of Common Stock subject to the Plan may be
authorized but unissued Common Stock or reacquired Common Stock, bought on the market, pursuant to
any forfeiture provision or otherwise.

     5. Eligibility.

          5.1 Eligibility for Specific Awards. Incentive Stock Options may be granted only to
Employees. Awards other than Incentive Stock Options may be granted to Employees, Directors and
Consultants.

          5.2 Ten Percent Stockholders. A Ten Percent Stockholder shall not be granted an
Incentive Stock Option unless the exercise price of such Option is at least 110% of the Fair Market
Value of the Common Stock at the Date of Grant and the Option is not exercisable after the
expiration of five years from the Date of Grant.

          5.3 Section 162(m) Limitation. Subject to the provisions of Section 12.1
relating to adjustments upon changes in the shares of Common Stock, no Employee shall be eligible
to be granted Awards covering more than 500,000 shares during any fiscal year. This Section
5.3 shall not apply prior to the Listing Date and, following the Listing Date, this Section
5.3 shall not apply until (a) the earliest of: (i) the first material modification of the Plan
(including any increase in the number of shares of Common
Stock reserved for issuance under the Plan in accordance with Section 4.1); (ii) the
issuance of all of the shares of Common Stock reserved for issuance under the Plan; (iii) the
expiration of the Plan; or (iv) the first meeting of stockholders at which Directors are to be
elected that occurs after the close of the third calendar year following the calendar year in which
occurred the first registration of an equity security under Section 12 of the Exchange Act; or (b)
such other date required by Section 162(m) of the Code and the rules and regulations promulgated
thereunder.

          5.4 Consultants.

               (a) Prior to the Listing Date, a Consultant shall not be eligible for the grant of an Award
if, at the time of grant, either the offer or the sale of the Company’s securities to such
Consultant is not exempt under Rule 701 of the Securities Act (“Rule 701”) because of the nature of
the services that the Consultant is providing to the Company, or because the Consultant is not a
natural person, or as otherwise provided by Rule 701, unless the Company determines that such grant
need not comply with the requirements of Rule 701 and will satisfy another exemption under the
Securities Act as well as comply with the securities laws of all other relevant jurisdictions.

               (b) From and after the Listing Date, a Consultant shall not be eligible for the grant of an
Award if, at the time of grant, a Form S-8 Registration Statement under the Securities Act (“Form
S-8”) is not available to register either the offer or the sale of the Company’s securities to such
Consultant because of the nature of the services that the Consultant is providing to the Company
(i.e., capital raising), or because the Consultant is not a natural person, or as otherwise
provided by the rules governing the use of Form S-8, unless the Company determines both (i) that
such grant (A) shall be registered in another manner under the Securities Act (e.g., on a Form S-3
Registration Statement) or (B) does not require registration

					
	 	 	 	 	 
	 
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under the Securities Act in order to
comply with the requirements of the Securities Act, if applicable, and (ii) that such grant
complies with the securities laws of all other relevant jurisdictions.

          5.5 Directors. Each Director of the Company shall be eligible to receive
discretionary grants of Awards under the Plan.

     6. Option Provisions.

          Each Option shall be in such form and shall contain such terms and conditions as the
Administrator shall deem appropriate. All Options shall be separately designated Incentive Stock
Options or Nonstatutory Stock Options at the time of grant, and, if certificates are issued, a
separate certificate or certificates will be issued for shares of Common Stock purchased on
exercise of each type of Option. Notwithstanding the foregoing, the Company shall have no
liability to any Participant or any other person if an Option designated as an Incentive Stock
Option fails to qualify as such at any time or if an Option is determined to constitute
“nonqualified deferred compensation” within the meaning of Section 409A of the Code and the terms
of such Option do not satisfy the additional conditions applicable to nonqualified deferred
compensation under Section 409A of the Code and Section 8 of the Plan. The provisions of
separate Options need not be identical, but
each Option shall include (through incorporation of provisions hereof by reference in the
Option or otherwise) the substance of each of the following provisions:

          6.1 Term. Subject to the provisions of Section 5.2 regarding Ten Percent
Stockholders, no Incentive Stock Option shall be exercisable after the expiration of 10 years from
the date it was granted.

          6.2 Exercise Price of an Incentive Stock Option. Subject to the provisions of
Section 5.2 regarding Ten Percent Stockholders, the exercise price of each Incentive Stock
Option shall be not less than 100% of the Fair Market Value of the Common Stock subject to the
Option on the date the Option is granted. Notwithstanding the foregoing, an Incentive Stock Option
may be granted with an exercise price lower than that set forth in the preceding sentence if such
Option is granted pursuant to an assumption or substitution for another option in a manner
satisfying the provisions of Section 424(a) of the Code.

          6.3 Exercise Price of a Nonstatutory Stock Option. The exercise price of each
Nonstatutory Stock Option shall be not less than 100% of the Fair Market Value of the Common Stock
subject to the Option on the date the Option is granted; provided, however, any Nonstatutory Stock
Option granted with an exercise price less than 100% of the Fair Market Value of the Common Stock
subject to the Option on the date the Option is granted shall satisfy the additional conditions
applicable to nonqualified deferred compensation under Section 409A of the Code, in accordance with
Section 6.15 and Section 8 hereof. Notwithstanding the foregoing, a Nonstatutory
Stock Option may be granted with an exercise price lower than that set forth in the preceding
sentence if such Option is granted pursuant to an assumption or substitution for another option in
a manner satisfying the provisions of Section 424(a) of the Code.

					
	 	 	 	 	 
	 
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          6.4 Consideration. The exercise price of Common Stock acquired pursuant to an Option
shall be paid, to the extent permitted by applicable statutes and regulations, either (a) in cash
or by certified or bank check at the time the Option is exercised or (b) in the discretion of the
Administrator, upon such terms as the Administrator shall approve, the exercise price may be paid:
(i) by delivery to the Company of other Common Stock, duly endorsed for transfer to the Company,
with a Fair Market Value on the date of delivery equal to the exercise price (or portion thereof)
due for the number of shares being acquired, or by means of attestation whereby the Participant
identifies for delivery specific shares of Common Stock that have been held for more than six
months (or such longer or shorter period of time required to avoid a charge to earnings for
financial accounting purposes) that have a Fair Market Value on the date of attestation equal to
the exercise price (or portion thereof) and receives a number of shares of Common Stock equal to
the difference between the number of shares thereby purchased and the number of identified
attestation shares of Common Stock (a “Stock for Stock Exchange”); (ii) during any period for which
the Common Stock is publicly traded (i.e., the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq National Market, or
if the Common Stock is quoted on the Nasdaq System (but not on the Nasdaq National Market) or any
similar system whereby the Common Stock is regularly quoted by a recognized securities dealer but
closing sale prices are not reported), by a copy of instructions to a broker directing such broker
to sell the Common Stock for which such
Option is exercised, and to remit to the Company the aggregate Exercise Price of such Options
(a “Cashless Exercise”); (iii) in any other form of legal consideration that may be acceptable to
the Administrator, including without limitation with a full-recourse promissory note; provided,
however, if applicable law requires, the par value (if any) of Common Stock, if newly issued, shall
be paid in cash or cash equivalents. Any Common Stock acquired upon exercise with a promissory
note shall be pledged as security for payment of the principal amount of the promissory note and
interest thereon. The interest rate payable under the terms of the promissory note shall not be
less than the minimum rate (if any) required to avoid the imputation of additional interest under
the Code. Subject to the foregoing, the Administrator (in its sole discretion) shall specify the
term, interest rate, amortization requirements (if any) and other provisions of such note. Unless
the Administrator determines otherwise, shares of Common Stock having a Fair Market Value at least
equal to the principal amount of any such loan shall be pledged by the holder to the Company as
security for payment of the unpaid balance of the loan and such pledge shall be evidenced by a
pledge agreement, the terms of which shall be determined by the Administrator, in its discretion;
provided, however, that each loan shall comply with all applicable laws, regulations and rules of
the Board of Governors of the Federal Reserve System and any other governmental agency having
jurisdiction. Unless otherwise specifically provided in the Option, the purchase price of Common
Stock acquired pursuant to an Option that is paid by delivery (or attestation) to the Company of
other Common Stock acquired, directly or indirectly from the Company, shall be paid only by shares
of the Common Stock of the Company that have been held for more than six months (or such longer or
shorter period of time required to avoid a charge to earnings for financial accounting purposes).
Notwithstanding the foregoing, during any period for which the Common Stock is publicly traded
(i.e., the Common Stock is listed on any established stock exchange or a national market system,
including without limitation the Nasdaq National Market, or if the Common Stock is quoted on the
Nasdaq System (but not on the Nasdaq National Market) or any similar system whereby the Common
Stock is regularly quoted by a recognized securities dealer but closing sale prices are

					
	 	 	 	 	 
	 
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not
reported), an exercise with a promissory note or other transaction by a Director or executive
officer that involves or may involve a direct or indirect extension of credit or arrangement of an
extension of credit by the Company, or an Affiliate in violation of Section 402(a) of the
Sarbanes-Oxley Act (codified as Section 13(k) of the Exchange Act) shall be prohibited with respect
to any Award under this Plan. Unless otherwise provided in the terms of an Option Agreement,
payment of the exercise price by a Participant who is an officer, director or other “insider”
subject to Section 16(b) of the Exchange Act in the form of a Stock for Stock Exchange is subject
to pre-approval by the Administrator, in its sole discretion. Any such pre-approval shall be
documented in a manner that complies with the specificity requirements of Rule 16b-3, including the
name of the Participant involved in the transaction, the nature of the transaction, the number of
shares to be acquired or disposed of by the Participant and the material terms of the Options
involved in the transaction.

          6.5 Transferability of an Incentive Stock Option. An Incentive Stock Option shall not
be transferable except by will or by the laws of descent and distribution and shall be exercisable
during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing,
the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the Optionholder, shall
thereafter be entitled to exercise the Option.

          6.6 Transferability of a Nonstatutory Stock Option. A Nonstatutory Stock Option may,
in the sole discretion of the Administrator, be transferable to a Permitted Transferee upon written
approval by the Administrator to the extent provided in the Option Agreement. A Permitted
Transferee includes: (a) a transfer by gift or domestic relations order to a member of the
Optionholder’s immediate family (child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships), any person
sharing the Optionholder’s household (other than a tenant or employee), a trust in which these
persons have more than 50% of the beneficial interest, a foundation in which these persons (or the
Optionholder) control the management of assets, and any other entity in which these persons (or the
Optionholder) own more than 50% of the voting interests; (b) third parties designated by the
Administrator in connection with a program established and approved by the Administrator pursuant
to which Participants may receive a cash payment or other consideration in consideration for the
transfer of such Nonstatutory Stock Option; and (c) such other transferees as may be permitted by
the Administrator in its sole discretion. If the Nonstatutory Stock Option does not provide for
transferability, then the Nonstatutory Stock Option shall not be transferable except by will or by
the laws of descent and distribution and shall be exercisable during the lifetime of the
Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by
delivering written notice to the Company, in a form satisfactory to the Company, designate a third
party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise
the Option.

          6.7 Vesting Generally. The Option may, but need not, vest and therefore become
exercisable in periodic installments that may, but need not, be equal. The Option may be subject
to such other terms and conditions on the time or times when it may be exercised (which may be
based on performance or other criteria) as the Administrator may deem appropriate. The vesting
provisions of individual Options may vary. No Option may be exercised for a fraction of

					
	 	 	 	 	 
	 
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a share of
Common Stock. The Administrator may, but shall not be required to, provide for an acceleration of
vesting and exercisability in the terms of any Option Agreement upon the occurrence of a specified
event.

          6.8 Termination of Continuous Service. Unless otherwise provided in an Option
Agreement or in an employment agreement the terms of which have been approved by the Administrator,
in the event an Optionholder’s Continuous Service terminates (other than upon the Optionholder’s
death or Disability or termination by the Company for Cause), the Optionholder may exercise his or
her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date
of termination) but only within such period of time ending on the earlier of (a) the date three
months following the termination of the Optionholder’s Continuous Service, or (b) the expiration of
the term of the Option as set forth in the Option Agreement. If, after termination, the
Optionholder does not exercise his or her Option within the time specified in the Option Agreement,
the Option shall terminate. Unless otherwise provided in an Option Agreement or in an employment
agreement the terms of which have been approved by the Administrator, or as otherwise provided in
Sections 6.10 and 6.11 of this Plan, outstanding Options that are not exercisable
at the time an Optionholder’s Continuous Service terminates for any reason other than for Cause
(including an Optionholder’s death or Disability) shall be forfeited and expire at the close of
business on the date of such termination. If the Optionholder’s Continuous Service
terminates for Cause, all outstanding Options shall be forfeited (whether or not vested) and
expire as of the beginning of business on the date of such termination for Cause.

          6.9 Extension of Termination Date. An Optionholder’s Option Agreement may also
provide that if the exercise of the Option following the termination of the Optionholder’s
Continuous Service for any reason other than Cause (other than upon the Optionholder’s death or
Disability) would be prohibited at any time because the issuance of shares of Common Stock would
violate the registration requirements under the Securities Act or any other state or federal
securities law or the rules of any securities exchange or interdealer quotation system, then the
Option shall terminate on the earlier of (a) the expiration of the term of the Option in accordance
with Section 6.1 or (b) the expiration of a period after termination of the Participant’s
Continuous Service that is three months after the end of the period during which the exercise of
the Option would be in violation of such registration or other securities law requirements.

          6.10 Disability of Optionholder. Unless otherwise provided in an Option Agreement, in
the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s
Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise such Option as of the date of termination), but only within such period of
time ending on the earlier of (a) the date 12 months following such termination or (b) the
expiration of the term of the Option as set forth in the Option Agreement. If, after termination,
the Optionholder does not exercise his or her Option within the time specified herein, the Option
shall terminate.

          6.11 Death of Optionholder. Unless otherwise provided in an Option Agreement, in the
event an Optionholder’s Continuous Service terminates as a result of the Optionholder’s death, then
the Option may be exercised (to the extent the Optionholder was

					
	 	 	 	 	 
	 
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entitled to exercise such Option as
of the date of death) by the Optionholder’s estate, by a person who acquired the right to exercise
the Option by bequest or inheritance or by a person designated to exercise the Option upon the
Optionholder’s death, but only within the period ending on the earlier of (a) the date 12 months
following the date of death or (b) the expiration of the term of such Option as set forth in the
Option Agreement. If, after death, the Option is not exercised within the time specified herein,
the Option shall terminate.

          6.12 Incentive Stock Option $100,000 Limitation. To the extent that the aggregate
Fair Market Value (determined at the time of grant) of Common Stock with respect to which Incentive
Stock Options are exercisable for the first time by any Optionholder during any calendar year
(under all plans of the Company and its Affiliates) exceeds $100,000, the Options or portions
thereof which exceed such limit (according to the order in which they were granted) shall be
treated as Nonstatutory Stock Options.

          6.13 Early Exercise. The Option may, but need not, include a provision whereby the
Optionholder may elect at any time before the Optionholder’s Continuous Service terminates to
exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior
to the full vesting of the Option. In such case, the shares of Common Stock acquired on exercise
shall be subject to the vesting schedule that otherwise would apply to
determine the exercisability of the Option. Any unvested shares of Common Stock so purchased
may be subject to any other restriction the Administrator determines to be appropriate.

          6.14 Reload Options. At the discretion of the Administrator, the Option may include a
“reload” feature pursuant to which an Optionholder exercising an option by the delivery of a number
of shares of Common Stock in accordance with Section 6.4(b)(i) hereof would automatically
be granted an additional Option (with an exercise price equal to the Fair Market Value of the
Common Stock on the date the additional Option is granted and with the same expiration date as the
original Option being exercised, and with such other terms as the Administrator may provide) to
purchase that number of shares of Common Stock equal to the number delivered in a Stock for Stock
Exchange of the original Option.

          6.15 Additional Requirements Under Section 409A. Each Option Agreement shall include
a provision whereby, notwithstanding any provision of the Plan or the Option Agreement to the
contrary, the Option shall satisfy the additional conditions applicable to nonqualified deferred
compensation under Section 409A of the Code, in accordance with Section 8 hereof, in the
event any Option under this Plan is granted with an exercise price less than Fair Market Value of
the Common Stock subject to the Option on the date the Option is granted (regardless of whether or
not such exercise price is intentionally or unintentionally priced at less than Fair Market Value,
or is materially modified at a time when the Fair Market Value exceeds the exercise price), or is
otherwise determined to constitute “nonqualified deferred compensation” within the meaning of
Section 409A of the Code.

     7. Provisions of Awards Other Than Options.

          7.1 Restricted Awards. A Restricted Award is an Award of actual shares of Common
Stock (“Restricted Stock”) or hypothetical Common Stock units (“Restricted Stock Units”) having a
value equal to the Fair Market Value of an identical number of shares of

					
	 	 	 	 	 
	 
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Common Stock, which may,
but need not, provide that such Restricted Award may not be sold, assigned, transferred or
otherwise disposed of, pledged or hypothecated as collateral for a loan or as security for the
performance of any obligation or for any other purpose for such period (the “Restricted Period”) as
the Administrator shall determine. Each Restricted Award shall be in such form and shall contain
such terms, conditions and Restricted Periods as the Administrator shall deem appropriate,
including the treatment of dividends or dividend equivalents, as the case may be. The
Administrator in its discretion may provide for an acceleration of the end of the Restricted Period
in the terms of any Restricted Award, at any time, including in the event a Change in Control
occurs. The terms and conditions of the Restricted Award may change from time to time, and the
terms and conditions of separate Restricted Awards need not be identical, but each Restricted Award
shall include (through incorporation of provisions hereof by reference in the agreement or
otherwise) the substance of each of the following provisions:

               (a) Purchase Price. The purchase price of Restricted Awards, if any, shall be
determined by the Administrator, and may be stated as cash, property or prior services.

               (b) Consideration. The consideration for Common Stock acquired pursuant to the
Restricted Award shall be paid either: (i) in cash at the time of purchase; or (ii) in any other
form of legal consideration that may be acceptable to the Administrator in its discretion
including, without limitation, a recourse promissory note, property or a Stock for Stock Exchange,
or prior services that the Administrator determines have a value at least equal to the Fair Market
Value of such Common Stock.

               (c) Vesting. Shares of Common Stock acquired under the Restricted Award may, but need
not, be subject to a Restricted Period that specifies a Right of Repurchase in favor of the Company
in accordance with a vesting schedule to be determined by the Administrator, or forfeiture in the
event the consideration was in the form of services. The Administrator in its discretion may
provide for an acceleration of vesting in the terms of any Restricted Award, at any time, including
in the event a Change in Control occurs.

               (d) Termination of Participant’s Continuous Service. Unless otherwise provided in a
Restricted Award or in an employment agreement the terms of which have been approved by the
Administrator, in the event a Participant’s Continuous Service terminates for any reason, the
Company may exercise its Right of Repurchase or otherwise reacquire, or the Participant shall
forfeit the unvested portion of a Restricted Award acquired in consideration of prior or future
services, and any or all of the shares of Common Stock held by the Participant which have not
vested as of the date of termination under the terms of the Restricted Award shall be forfeited and
the Participant shall have no rights with respect to the Award.

               (e) Transferability. Rights to acquire shares of Common Stock under the Restricted
Award shall be transferable by the Participant only upon such terms and conditions as are set forth
in the Award Agreement, as the Administrator shall determine in its discretion, so long as Common
Stock awarded under the Restricted Award remains subject to the terms of the Award Agreement.

               (f) Concurrent Tax Payment. The Administrator, in its sole discretion, may (but shall
not be required to) provide for payment of a concurrent cash award in an amount

					
	 	 	 	 	 
	 
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equal, in whole or
in part, to the estimated after tax amount required to satisfy applicable federal, state or local
tax withholding obligations arising from the receipt and deemed vesting of restricted stock for
which an election under Section 83(b) of the Code may be required.

               (g) Lapse of Restrictions. Upon the expiration or termination of the Restricted
Period and the satisfaction of any other conditions prescribed by the Administrator, the
restrictions applicable to the Restricted Award shall lapse and a stock certificate for the number
of shares of Common Stock with respect to which the restrictions have lapsed shall be delivered,
free of any restrictions except those that may be imposed by law, the terms of the Plan or the
terms of a Restricted Award, to the Participant or the Participant’s beneficiary or estate, as the
case may be, unless such Restricted Award is subject to a deferral condition that complies with the
409A Award requirements that may be allowed or required by the Administrator in its sole
discretion. The Company shall not be required to deliver any fractional share of Common Stock but
will pay, in lieu thereof, the Fair Market Value of such fractional share in cash to the
Participant or the Participant’s beneficiary or estate, as the case may be. Unless otherwise
subject to a deferral condition that complies with the 409A Award requirements, the Common
Stock certificate shall be issued and delivered and the Participant shall be entitled to the
beneficial ownership rights of such Common Stock not later than (i) the date that is 2-1/2 months
after the end of the Participant’s taxable year for which the Restricted Period ends and the
Participant has a legally binding right to such amounts; (ii) the date that is 2-1/2 months after
the end of the Company’s taxable year for which the Restricted Period ends and the Participant has
a legally binding right to such amounts, whichever is later; or (iii) such earlier date as may be
necessary to avoid application of Code Section 409A to such Award.

          7.2 Performance Awards.

               (a) Nature of Performance Awards. A Performance Award is an Award entitling the
recipient to acquire shares of Common Stock or hypothetical Common Stock units having a value equal
to the Fair Market Value of an identical number of shares of Common Stock that will be settled in
the form of shares of Common Stock upon the attainment of specified performance goals. The
Administrator may make Performance Awards independent of or in connection with the granting of any
other Award under the Plan. Performance Awards may be granted under the Plan to any Participant,
including those who qualify for awards under other performance plans of the Company. The
Administrator in its sole discretion shall determine whether and to whom Performance Awards shall
be made, the performance goals applicable under each Award, the periods during which performance is
to be measured, and all other limitations and conditions applicable to the awarded shares;
provided, however, that the Administrator may rely on the performance goals and other standards
applicable to other performance plans of the Company in setting the standards for Performance
Awards under the Plan. Performance goals shall be based on a pre-established objective formula or
standard that specifies the manner of determining the number of shares under the Performance Award
that will be granted or will vest if the performance goal is attained. Performance goals will be
determined by the Administrator prior to the time 25% of the service period has elapsed and may be
based on one or more business criteria that apply to a Participant, a business unit or the Company
and its Affiliates. Such business criteria may include, by way of example and without limitation,
revenue, earnings before interest, taxes, depreciation and amortization (EBITDA), funds from
operations, funds from operations per share, operating income, pre-tax or after-tax income, cash

					
	 	 	 	 	 
	 
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available for distribution, cash available for distribution per share, net earnings, earnings per
share, return on equity, return on assets, return on capital, economic value added, share price
performance, improvements in the Company’s attainment of expense levels, and implementing or
completion of critical projects, or improvement in cash-flow (before or after tax). A performance
goal may be measured over a performance period on a periodic, annual, cumulative or average basis
and may be established on a corporate-wide basis or established with respect to one or more
operating units, divisions, subsidiaries, acquired businesses, minority investments, partnerships
or joint ventures. More than one performance goal may be incorporated in a performance objective,
in which case achievement with respect to each performance goal may be assessed individually or in
combination with each other. The Administrator may, in connection with the establishment of
performance goals for a performance period, establish a matrix setting forth the relationship
between performance on two or more performance goals and the amount of the Performance Award
payable for that performance period. The level or levels of performance specified with respect to
a performance goal may be established in absolute terms, as objectives relative to performance in
prior periods, as an objective compared to the performance of one or more comparable companies or
an index covering multiple companies, or otherwise as the
Administrator may determine. Performance goals shall be objective and, if the Company is
publicly traded, shall otherwise meet the requirements of Section 162(m) of the Code. Performance
goals may differ for Performance Awards granted to any one Participant or to different
Participants. A Performance Award to a Participant who is a Covered Employee shall (unless the
Administrator determines otherwise) provide that in the event of the Participant’s termination of
Continuous Service prior to the end of the performance period for any reason, such Award will be
payable only (i) if the applicable performance objectives are achieved and (ii) to the extent, if
any, the Administrator shall determine. Such objective performance goals are not required to be
based on increases in a specific business criteria, but may be based on maintaining the status quo
or limiting economic losses.

               (b) Restrictions on Transfer. Performance Awards and all rights with respect to such
Performance Awards may not be sold, assigned, transferred, pledged or otherwise encumbered.

               (c) Rights as a Stockholder. A Participant receiving a Performance Award that is
denominated in shares of Common Stock or hypothetical Common Stock units shall have the rights of a
stockholder only as to shares actually received by the Participant under the Plan and not with
respect to shares subject to the Award but not actually received by the Participant. A Participant
shall be entitled to receive a stock certificate evidencing the acquisition of shares of Common
Stock under a Performance Award only upon satisfaction of all conditions specified in the written
instrument evidencing the Performance Award (or in a performance plan adopted by the
Administrator). The Common Stock certificate shall be issued and delivered and the Participant
shall be entitled to the beneficial ownership rights of such Common Stock not later than (i) the
date that is 2-1/2 months after the end of the Participant’s taxable year for which the
Administrator certifies that the Performance Award conditions have been satisfied and the
Participant has a legally binding right to such amounts; (ii) the date that is 2-1/2 months after
the end of the Company’s taxable year for which the Administrator certifies that the Performance
Award conditions have been satisfied and the Participant has a legally binding right to such
amounts, whichever is later; or (iii) such other date as may be necessary to avoid application of
Section 409A to such Awards.

					
	 	 	 	 	 
	 
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               (d) Termination. Except as may otherwise be provided by the Administrator at any
time, a Participant’s rights in all Performance Awards shall automatically terminate upon the
Participant’s termination of employment (or business relationship) with the Company and its
Affiliates for any reason.

               (e) Acceleration, Waiver, Etc. At any time prior to the Participant’s termination of
employment (or other business relationship) by the Company and its Affiliates, the Administrator
may in its sole discretion accelerate, waive or, subject to Section 13, amend any or all of
the goals, restrictions or conditions imposed under any Performance Award. The Administrator in
its discretion may provide for an acceleration of vesting in the terms of any Performance Award at
any time, including in the event a Change in Control occurs.

               (f) Certification. Following the completion of each performance period, the
Administrator shall certify in writing, in accordance with the requirements of
Section 162(m) of the Code, whether the performance objectives and other material terms of a
Performance Award have been achieved or met. Unless the Administrator determines otherwise,
Performance Awards shall not be settled until the Administrator has made the certification
specified under this Section 7.2(f).

          7.3 Stock Appreciation Rights.

               (a) General. Stock Appreciation Rights may be granted either alone (“Free Standing
Rights”) or, provided the requirements of Section 7.3(b) are satisfied, in tandem with all
or part of any Option granted under the Plan (“Related Rights”). In the case of a Nonstatutory
Stock Option, Related Rights may be granted either at or after the time of the grant of such
Option. In the case of an Incentive Stock Option, Related Rights may be granted only at the time
of the grant of the Incentive Stock Option.

               (b) Grant Requirements. A Stock Appreciation Right may only be granted if the Stock
Appreciation Right: (i) does not provide for the deferral of compensation within the meaning of
Section 409A of the Code; or (ii) satisfies the requirements of Section 7.3(h) and
Section 8 hereof. A Stock Appreciation Right does not provide for a deferral of
compensation if: (A) the value of the Common Stock the excess over which the right provides for
payment upon exercise (the “SAR exercise price”) may never be less than the Fair Market Value of
the underlying Common Stock on the date the right is granted, (B) the compensation payable under
the Stock Appreciation Right can never be greater than the difference between the SAR exercise
price and the Fair Market Value of the Common Stock on the date the Stock Appreciation Right is
exercised, (C) the number of shares of Common Stock subject to the Stock Appreciation Right must be
fixed on the date of grant of the Stock Appreciation Right, and (D) the right does not include any
feature for the deferral of compensation other than the deferral of recognition of income until the
exercise of the right.

               (c) Exercise and Payment. Upon exercise thereof, the holder of a Stock Appreciation
Right shall be entitled to receive from the Company, an amount equal to the product of (i) the
excess of the Fair Market Value, on the date of such written request, of one share of Common Stock
over the SAR exercise price per share specified in such Stock Appreciation Right or its related
Option, multiplied by (ii) the number of shares for which such

					
	 	 	 	 	 
	 
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Stock Appreciation Right shall be
exercised. Payment with respect to the exercise of a Stock Appreciation Right that satisfies the
requirements of Section 7.3(b)(i) shall be paid on the date of exercise and made in shares
of Common Stock (with or without restrictions as to substantial risk of forfeiture and
transferability, as determined by the Administrator in its sole discretion), valued at Fair Market
Value on the date of exercise. Payment with respect to the exercise of a Stock Appreciation Right
that does not satisfy the requirements of Section 7.3(b)(i) shall be paid at the time
specified in the Award in accordance with the provisions of Section 7.3(h) and Section
8. Payment may be made in the form of shares of Common Stock (with or without restrictions as
to substantial risk of forfeiture and transferability, as determined by the Administrator in its
sole discretion), cash or a combination thereof, as determined by the Administrator.

               (d) Exercise Price. The exercise price of a Free Standing Stock Appreciation Right
shall be determined by the Administrator, but shall not be less than 100% of the Fair Market Value
of one share of Common Stock on the Date of Grant of such Stock Appreciation Right. A Related
Right granted simultaneously with or subsequent to the grant of an Option and in conjunction
therewith or in the alternative thereto shall have the same exercise price as the related Option,
shall be transferable only upon the same terms and conditions as the related Option, and shall be
exercisable only to the same extent as the related Option; provided, however, that a Stock
Appreciation Right, by its terms, shall be exercisable only when the Fair Market Value per share of
Common Stock subject to the Stock Appreciation Right and related Option exceeds the exercise price
per share thereof and no Stock Appreciation Rights may be granted in tandem with an Option unless
the Administrator determines that the requirements of Section 7.3(b)(i) are satisfied.

               (e) Reduction in the Underlying Option Shares. Upon any exercise of a Stock
Appreciation Right, the number of shares of Common Stock for which any related Option shall be
exercisable shall be reduced by the number of shares for which the Stock Appreciation Right shall
have been exercised. The number of shares of Common Stock for which a Stock Appreciation Right
shall be exercisable shall be reduced upon any exercise of any related Option by the number of
shares of Common Stock for which such Option shall have been exercised.

               (f) Written Request. Unless otherwise determined by the Administrator in its sole
discretion and only if permitted in the Stock Appreciation Right’s Award Agreement, any exercise of
a Stock Appreciation Right for cash, may be made only by a written request filed with the Corporate
Secretary of the Company during the period beginning on the third business day following the date
of release for publication by the Company of quarterly or annual summary statements of earnings and
ending on the twelfth business day following such date. Within 30 days of the receipt by the
Company of a written request to receive cash in full or partial settlement of a Stock Appreciation
Right or to exercise such Stock Appreciation Right for cash, the Administrator shall, in its sole
discretion, either consent to or disapprove, in whole or in part, such written request. A written
request to receive cash in full or partial settlement of a Stock Appreciation Right or to exercise
a Stock Appreciation Right for cash may provide that, in the event the Administrator shall
disapprove such written request, such written request shall be deemed to be an exercise of such
Stock Appreciation Right for shares of Common Stock.

					
	 	 	 	 	 
	 
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               (g) Disapproval by Administrator. If the Administrator disapproves in whole or in
part any election by a Participant to receive cash in full or partial settlement of a Stock
Appreciation Right or to exercise such Stock Appreciation Right for cash, such disapproval shall
not affect such Participant’s right to exercise such Stock Appreciation Right at a later date, to
the extent that such Stock Appreciation Right shall be otherwise exercisable, or to elect the form
of payment at a later date, provided that an election to receive cash upon such later exercise
shall be subject to the approval of the Administrator. Additionally, such disapproval shall
not affect such Participant’s right to exercise any related Option.

               (h) Additional Requirements under Section 409A. A Stock Appreciation Right that is
not intended to or fails to satisfy the requirements of Section 7.3(b)(i) shall satisfy the
requirements of this Section 7.3(h) and the additional conditions applicable to
nonqualified deferred compensation under Section 409A of the Code, in accordance with Section
8 hereof. The requirements herein shall apply in the event any Stock Appreciation Right under
this Plan is granted with an SAR exercise price less than Fair Market Value of the Common Stock
underlying the Award on the date the Stock Appreciation Right is granted (regardless of whether or
not such SAR exercise price is intentionally or unintentionally priced at less than Fair Market
Value, or is materially modified at a time when the Fair Market Value exceeds the SAR exercise
price), provides that it is settled in cash, or is otherwise determined to constitute “nonqualified
deferred compensation” within the meaning of Section 409A of the Code. Any such Stock Appreciation
Right may provide that it is exercisable at any time permitted under the governing written
instrument, but such exercise shall be limited to fixing the measurement of the amount, if any, by
which the Fair Market Value of a share of Common Stock on the date of exercise exceeds the SAR
exercise price (the “SAR Amount”). However, once the Stock Appreciation Right is exercised, the
SAR Amount may only be paid on the fixed time, payment schedule or other event specified in the
governing written instrument or in Section 8.1 hereof.

     8. Additional Conditions Applicable to Nonqualified Deferred Compensation Under
Section 409A of the Code.

          In the event any Award under this Plan is granted with an exercise price less than Fair Market
Value of the Common Stock subject to the Award on the Date of Grant (regardless of whether or not
such exercise price is intentionally or unintentionally priced at less than Fair Market Value, or
such Award is materially modified and deemed a new Award at a time when the Fair Market Value
exceeds the exercise price), or is otherwise determined to constitute a 409A Award, the following
additional conditions shall apply and shall supersede any contrary provisions of this Plan or the
terms of any 409A Award agreement.

          8.1 Exercise and Distribution. No 409A Award shall be exercisable or distributable
earlier than upon one of the following:

               (a) Specified Time. A specified time or a fixed schedule set forth in the written
instrument evidencing the 409A Award, but not later than after the expiration of 10 years from the
Date of Grant. If the written grant instrument does not specify a fixed time or schedule, such
time shall be the date that is the fifth anniversary of the Date of Grant.

					
	 	 	 	 	 
	 
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               (b) Separation from Service. Separation from service (within the meaning of Section
409A of the Code) by the 409A Award recipient; provided, however, if the 409A Award recipient is a
“key employee” (as defined in Section 416(i) of the Code without regard to paragraph (5) thereof)
and any of the Company’s stock is publicly traded on an
established securities market or otherwise, exercise or distribution under this Section
8.1(b) may not be made before the date which is six months after the date of separation from
service.

               (c) Death. The date of death of the 409A Award recipient.

               (d) Disability. The date the 409A Award recipient becomes disabled (within the
meaning of Section 8.4(b) hereof).

               (e) Unforeseeable Emergency. The occurrence of an unforeseeable emergency (within the
meaning of Section 8.4(c) hereof), but only if the net value (after payment of the exercise
price) of the number of shares of Common Stock that become issuable does not exceed the amounts
necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a
result of the exercise, after taking into account the extent to which the emergency is or may be
relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the
Participant’s other assets (to the extent such liquidation would not itself cause severe financial
hardship).

               (f) Change in Control Event. The occurrence of a Change in Control Event (within the
meaning of Section 8.4(a) hereof), including the Company’s discretionary exercise of the
right to accelerate vesting of such Award upon a Change in Control Event or to terminate the Plan
or any 409A Award granted hereunder within 12 months of the Change in Control Event.

          8.2 Term. Notwithstanding anything to the contrary in this Plan or the terms of any
409A Award agreement, the term of any 409A Award shall expire and such Award shall no longer be
exercisable on the date that is the later of: (a) 2-1/2 months after the end of the Company’s
taxable year in which the 409A Award first becomes exercisable or distributable pursuant to
Section 8 hereof and is not subject to a substantial risk of forfeiture; or (b) 2-1/2
months after the end of the 409A Award recipient’s taxable year in which the 409A Award first
becomes exercisable or distributable pursuant to Section 8 hereof and is not subject to a
substantial risk of forfeiture, but not later than the earlier of (i) the expiration of 10 years
from the date the 409A Award was granted, or (ii) the term specified in the 409A Award agreement.

          8.3 No Acceleration. A 409A Award may not be accelerated or exercised prior to the
time specified in Section 8 hereof, except in the case of one of the following events:

               (a) Domestic Relations Order. The 409A Award may permit the acceleration of the
exercise or distribution time or schedule to an individual other than the Participant as may be
necessary to comply with the terms of a domestic relations order (as defined in Section
414(p)(1)(B) of the Code).

               (b) Conflicts of Interest. The 409A Award may permit the acceleration of the exercise
or distribution time or schedule as may be necessary to comply with the terms of a certificate of
divestiture (as defined in Section 1043(b)(2) of the Code).

					
	 	 	 	 	 
	 
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               (c) Change in Control Event. The Administrator may exercise the discretionary right
to accelerate the vesting of such 409A Award upon a Change in Control Event or to terminate the
Plan or any 409A Award granted thereunder within 12 months of the Change in Control Event and
cancel the 409A Award for compensation. In addition, the Administrator may exercise the
discretionary right to accelerate the vesting of such 409A Award provided that such acceleration
does not change the time or schedule of payment of such Award and otherwise satisfies the
requirements of this Section 8 and the requirements of Section 409A of the Code.

          8.4 Definitions. Solely for purposes of this Section 8 and not for other
purposes of the Plan, the following terms shall be defined as set forth below:

               (a) “Change in Control Event” means the occurrence of a change in the ownership of the
Company, a change in effective control of the Company, or a change in the ownership of a
substantial portion of the assets of the Company (as defined in Proposed Regulations §
1.409A-3(g)(5) and any subsequent guidance interpreting Code Section 409A). For example, a Change
in Control Event will occur if:

               (i) a person or more than one person acting as a group:

     (A) acquires ownership of stock that brings such person’s or
group’s total ownership in excess of 50% of the outstanding stock of
the Company; or

     (B) acquires ownership of 35% or more of the total voting power
of the Company within a 12 month period; or

               (ii) acquires ownership of assets from the Company equal to 40% or more
of the total value of the Company within a 12 month period.

               (b) “Disabled” means a Participant (i) is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less than 12 months, or
(ii) is, by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than three months under an
accident and health plan covering Employees.

               (c) “Unforeseeable Emergency” means a severe financial hardship to the Participant resulting
from an illness or accident of the Participant, the Participant’s spouse, or a dependent (as
defined in Section 152(a) of the Code) of the Participant, loss of the Participant’s property due
to casualty, or similar extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant.

     9. Covenants of the Company.

          9.1 Availability of Shares. During the terms of the Awards, the Company shall keep
available at all times the number of shares of Common Stock required to satisfy such Awards.

					
	 	 	 	 	 
	 
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          9.2 Securities Law Compliance. Each Option Agreement and Award Agreement shall
provide that no shares of Common Stock shall be purchased or sold thereunder unless and until (a)
any then applicable requirements of state or federal laws and regulatory agencies shall have been
fully complied with to the satisfaction of the Company and its counsel and (b) if required to do so
by the Company, the Participant shall have executed and delivered to the Company a letter of
investment intent in such form and containing such provisions as the Administrator may require.
The Company shall use reasonable efforts to seek to obtain from each regulatory commission or
agency having jurisdiction over the Plan such authority as may be required to grant Awards and to
issue and sell shares of Common Stock upon exercise of the Awards; provided, however, that this
undertaking shall not require the Company to register under the Securities Act the Plan, any Award
or any Common Stock issued or issuable pursuant to any such Award. If, after reasonable efforts,
the Company is unable to obtain from any such regulatory commission or agency the authority which
counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the
Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock
upon exercise of such Awards unless and until such authority is obtained.

     10. Use of Proceeds from Stock.

          Proceeds from the sale of Common Stock pursuant to Awards shall constitute general funds of
the Company.

     11. Miscellaneous.

          11.1 Acceleration of Exercisability and Vesting. The Administrator shall have the
power to accelerate the time at which an Award may first be exercised or the time during which an
Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in
the Award stating the time at which it may first be exercised or the time during which it will
vest.

          11.2 Stockholder Rights. No Participant shall be deemed to be the holder of, or to
have any of the rights of a holder with respect to, any shares of Common Stock subject to such
Award unless and until such Participant has satisfied all requirements for exercise of the Award
pursuant to its terms and no adjustment shall be made for dividends (ordinary or extraordinary,
whether in cash, securities or other property) or distributions of other rights for which the
record date is prior to the date such Common Stock certificate is issued, except as provided in
Section 12.1 hereof.

          11.3 No Employment or Other Service Rights. Nothing in the Plan or any instrument
executed or Award granted pursuant thereto shall confer upon any Participant any right to continue
to serve the Company or an Affiliate in the capacity in effect at the time the Award was granted or
shall affect the right of the Company or an Affiliate to terminate (a) the
employment of an Employee with or without notice and with or without Cause, (b) the service of
a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate
or (c) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any
applicable provisions of the corporate law of the state in which the Company or the Affiliate is
incorporated, as the case may be.

					
	 	 	 	 	 
	 
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          11.4 Transfer, Approved Leave of Absence. For purposes of the Plan, no termination of
employment by an Employee shall be deemed to result from either (a) a transfer to the employment of
the Company from an Affiliate or from the Company to an Affiliate, or from one Affiliate to
another; or (b) an approved leave of absence for military service or sickness, or for any other
purpose approved by the Company, if the Employee’s right to re-employment is guaranteed either by a
statute or by contract or under the policy pursuant to which the leave of absence was granted or if
the Administrator otherwise so provides in writing.

          11.5 Investment Assurances. The Company may require a Participant, as a condition of
exercising or acquiring Common Stock under any Award, (a) to give written assurances satisfactory
to the Company as to the Participant’s knowledge and experience in financial and business matters
and/or to employ a purchaser representative reasonably satisfactory to the Company who is
knowledgeable and experienced in financial and business matters and that he or she is capable of
evaluating, alone or together with the purchaser representative, the merits and risks of exercising
the Award; and (b) to give written assurances satisfactory to the Company stating that the
Participant is acquiring Common Stock subject to the Award for the Participant’s own account and
not with any present intention of selling or otherwise distributing the Common Stock. The
foregoing requirements, and any assurances given pursuant to such requirements, shall be
inoperative if (i) the issuance of the shares of Common Stock upon the exercise or acquisition of
Common Stock under the Award has been registered under a then currently effective registration
statement under the Securities Act or (ii) as to any particular requirement, a determination is
made by counsel for the Company that such requirement need not be met in the circumstances under
the then applicable securities laws. The Company may, upon advice of counsel to the Company, place
legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate
in order to comply with applicable securities laws, including, but not limited to, legends
restricting the transfer of the Common Stock.

          11.6 Withholding Obligations. To the extent provided by the terms of an Award
Agreement and subject to the discretion of the Administrator, the Participant may satisfy any
federal, state or local tax withholding obligation relating to the exercise or acquisition of
Common Stock under an Award by any of the following means (in addition to the Company’s right to
withhold from any compensation paid to the Participant by the Company) or by a combination of such
means: (a) tendering a cash payment; (b) authorizing the Company to withhold shares of Common
Stock from the shares of Common Stock otherwise issuable to the Participant as a result of the
exercise or acquisition of Common Stock under the Award, provided, however, that no shares of
Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld
by law; (c) delivering to the Company previously owned and unencumbered shares of Common Stock of
the Company or (d) by execution of a recourse promissory note by a Participant who is not a
Director or executive officer. Unless otherwise provided in the terms of an Option Agreement,
payment of the tax
withholding by a Participant who is an officer, director or other “insider” subject to Section
16(b) of the Exchange Act by delivering previously owned and unencumbered shares of Common Stock of
the Company or in the form of share withholding is subject to pre-approval by the Administrator, in
its sole discretion. Any such pre-approval shall be documented in a manner that complies with the
specificity requirements of Rule 16b-3, including the name of the Participant involved in the
transaction, the nature of the transaction, the number of shares to be

					
	 	 	 	 	 
	 
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acquired or disposed of by
the Participant and the material terms of the Options involved in the transaction.

          11.7 Right of Repurchase. Each Award Agreement may provide that, following a
termination of the Participant’s Continuous Service, the Company may repurchase the Participant’s
unvested Common Stock acquired under the Plan as provided in this Section 11.7 (the “Right
of Repurchase”). The Right of Repurchase for unvested Common Stock shall be exercisable at a price
equal to the lesser of the purchase price at which such Common Stock was acquired under the Plan or
the Fair Market Value of such Common Stock (if an Award is granted solely in consideration of past
services without payment of any additional consideration, the unvested Common Stock shall be
forfeited without any repurchase). The Award Agreement may specify the period of time following a
termination of the Participant’s Continuous Service during which the Right of Repurchase may be
exercised.

     12. Adjustments Upon Changes in Stock.

          12.1 Capitalization Adjustments. If any change is made in the Common Stock subject to
the Plan, or subject to any Award, without the receipt of consideration by the Company (through
merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend
in property other than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the receipt of
consideration by the Company), then (a) the aggregate number of shares of Common Stock or class of
shares which may be purchased pursuant to Awards granted hereunder; (b) the aggregate number of
shares of Common Stock or class of shares which may be purchased pursuant to Incentive Stock
Options granted hereunder; (c) the number and/or class of shares of Common Stock covered by
outstanding Options and Awards; (d) the maximum number of shares of Common Stock with respect to
which Options may be granted to any single Optionholder during any calendar year; and (e) the
exercise price of any Option in effect prior to such change shall be proportionately adjusted by
the Administrator to reflect any increase or decrease in the number of issued shares of Common
Stock or change in the Fair Market Value of such Common Stock resulting from such transaction;
provided, however, that any fractional shares resulting from the adjustment shall be eliminated.
The Administrator shall make such adjustments, and its determination shall be final, binding and
conclusive. The conversion of any securities of the Company that are by their terms convertible
shall not be treated as a transaction “without receipt of consideration” by the Company.

          12.2 Dissolution or Liquidation. In the event of a dissolution or liquidation of the
Company, then all outstanding Awards shall terminate immediately prior to such event.

          12.3 Change in Control – Asset Sale, Merger, Consolidation or Reverse Merger. In the
event of a Change in Control, a dissolution or liquidation of the Company, or any corporate
separation or division, including, but not limited to, a split-up, a split-off or a spin-off, or a
sale of substantially all of the assets of the Company; a merger or consolidation in which the
Company is not the Surviving Entity; or a reverse merger in which the Company is the Surviving
Entity, but the shares of Common Stock outstanding immediately preceding the merger are converted
by virtue of the merger into other property, whether in the form of securities, cash or otherwise,
then the Company, to the extent permitted by applicable law, but otherwise in the sole

					
	 	 	 	 	 
	 
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discretion
of the Administrator may provide for: (a) the continuation of outstanding Awards by the Company (if
the Company is the Surviving Entity); (b) the assumption of the Plan and such outstanding Awards by
the Surviving Entity or its parent; (c) the substitution by the Surviving Entity or its parent of
Awards with substantially the same terms (including an award to acquire the same consideration paid
to the stockholders in the transaction described in this Section 12.3) for such outstanding
Awards and, if appropriate, subject to the equitable adjustment provisions of Section 12.1
hereof; (d) the cancellation of such outstanding Awards in consideration for a payment (in the form
of stock or cash) equal in value to the Fair Market Value of vested Awards, or in the case of an
Option, the difference between the Fair Market Value and the exercise price for all shares of
Common Stock subject to exercise (i.e., to the extent vested) under any outstanding Option; or (e)
the cancellation of such outstanding Awards without payment of any consideration. If such Awards
would be canceled without consideration for vested Awards, the Participant shall have the right,
exercisable during the later of the 10-day period ending on the fifth day prior to such merger or
consolidation or 10 days after the Administrator provides the Award holder a notice of
cancellation, to exercise such Awards in whole or in part without regard to any installment
exercise provisions in the Option Agreement.

     13. Amendment of the Plan and Awards.

          13.1 Amendment of Plan. The Board at any time, and from time to time, may amend or
terminate the Plan. However, except as provided in Section 12.1 relating to adjustments
upon changes in Common Stock, no amendment shall be effective unless approved by the stockholders
of the Company to the extent stockholder approval is necessary to satisfy any applicable law or any
Nasdaq or securities exchange listing requirements. At the time of such amendment, the Board shall
determine, upon advice from counsel, whether such amendment will be contingent on stockholder
approval.

          13.2 Stockholder Approval. The Board may, in its sole discretion, submit any other
amendment to the Plan for stockholder approval, including, but not limited to, amendments to the
Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations
thereunder regarding the exclusion of performance-based compensation from the limit on corporate
deductibility of compensation paid to certain executive officers.

          13.3 Contemplated Amendments. It is expressly contemplated that the Board may amend
the Plan in any respect the Board deems necessary or advisable to provide eligible Employees with
the maximum benefits provided or to be provided under the provisions of the Code and the
regulations promulgated thereunder relating to Incentive Stock Options or to the
nonqualified deferred compensation provisions of Section 409A of the Code and/or to bring the
Plan and/or Awards granted under it into compliance therewith.

          13.4 No Impairment of Rights. Rights under any Award granted before amendment of the
Plan shall not be impaired by any amendment of the Plan unless (a) the Company requests the consent
of the Participant and (b) the Participant consents in writing. However, a cancellation of an
Award where the Participant receives a payment equal in value to the Fair Market Value of the
vested Award or, in the case of vested Options, the difference between the Fair Market Value and
the exercise price, shall not be an impairment of the Participant’s rights that requires consent of
the Participant.

					
	 	 	 	 	 
	 
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          13.5 Amendment of Awards. The Administrator at any time, and from time to time, may
amend the terms of any one or more Awards; provided, however, that the Administrator may not effect
any amendment which would otherwise constitute an impairment of the rights under any Award unless
(a) the Company requests the consent of the Participant and (b) the Participant consents in
writing. For the avoidance of doubt, the cancellation of a vested Award where the Participant
receives a payment equal in value to the Fair Market Value of the vested Award or, in the case of
vested Options, the difference between the Fair Market Value of the Common Stock underlying the
Option and the aggregate exercise price, shall not be an impairment of the Participant’s rights
that requires consent of the Participant.

     14. General Provisions.

          14.1 Other Compensation Arrangements. Nothing contained in this Plan shall prevent
the Board from adopting other or additional compensation arrangements, subject to stockholder
approval if such approval is required; and such arrangements may be either generally applicable or
applicable only in specific cases.

          14.2 Recapitalizations. Each Option Agreement and Award Agreement shall contain
provisions required to reflect the provisions of Section 12.1.

          14.3 Delivery. Upon exercise of a right granted under this Plan, the Company shall
issue Common Stock or pay any amounts due within a reasonable period of time thereafter. Subject
to any statutory or regulatory obligations the Company may otherwise have, for purposes of this
Plan, 30 days shall be considered a reasonable period of time.

          14.4 Other Provisions. The Option Agreements and Award Agreements authorized under
the Plan may contain such other provisions not inconsistent with this Plan, including, without
limitation, restrictions upon the exercise of the Awards, as the Administrator may deem advisable.

          14.5 Cancellation and Rescission of Awards for Detrimental Activity.

               (a) Upon exercise, payment or delivery pursuant to an Award, the Participant shall certify in
a manner acceptable to the Company that the Participant has not engaged in any Detrimental Activity
described in Section 2.19.

               (b) Unless the Award Agreement specifies otherwise, the Administrator may cancel, rescind,
suspend, withhold or otherwise limit or restrict any unexpired, unpaid or deferred Awards at any
time if the Participant engages in any Detrimental Activity described in Section 2.19.

               (c) In the event a Participant engages in Detrimental Activity described in Section
2.19 after any exercise, payment or delivery pursuant to an Award, during any period for which
any restrictive covenant prohibiting such activity is applicable to the Participant, such exercise,
payment or delivery may be rescinded within one year thereafter. In the event of any such
rescission, the Participant shall pay to the Company the amount of any gain realized or payment
received as a result of the exercise, payment or delivery, in such manner and on such terms and
conditions as may be required by the Company. The Company shall be

					
	 	 	 	 	 
	 
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entitled to set-off against the
amount of any such gain any amount owed to the Participant by the Company.

          14.6 Disqualifying Dispositions. Any Participant who shall make a “disposition” (as
defined in Section 424 of the Code) of all or any portion of shares of Common Stock acquired upon
exercise of an Incentive Stock Option within two years from the Date of Grant of such Incentive
Stock Option or within one year after the issuance of the shares of Common Stock acquired upon
exercise of such Incentive Stock Option shall be required to immediately advise the Company in
writing as to the occurrence of the sale and the price realized upon the sale of such shares of
Common Stock.

     15. Market Stand-Off.

          Each Option Agreement and Award Agreement shall provide that, in connection with any
underwritten public offering by the Company of its equity securities pursuant to an effective
registration statement filed under the Securities Act, the Participant shall agree not to sell,
make any short sale of, loan, hypothecate, pledge, grant any option for the repurchase of, transfer
the economic consequences of ownership or otherwise dispose or transfer for value or otherwise
agree to engage in any of the foregoing transactions with respect to any Common Stock without the
prior written consent of the Company or its underwriters, for such period of time from and after
the effective date of such registration statement as may be requested by the Company or such
underwriters (the “Market Stand-Off”). In order to enforce the Market Stand-Off, the Company may
impose stop-transfer instructions with respect to the shares of Common Stock acquired under this
Plan until the end of the applicable stand-off period. If there is any change in the number of
outstanding shares of Common Stock by reason of a stock split, reverse stock split, stock dividend,
recapitalization, combination, reclassification, dissolution or liquidation of the Company, any
corporate separation or division (including, but not limited to, a split-up, a split-off or a
spin-off), a merger or consolidation; a reverse merger or similar transaction, then any new,
substituted or additional securities which are by reason of such
transaction distributed with respect to any shares of Common Stock subject to the Market
Stand-Off, or into which such shares of Common Stock thereby become convertible, shall immediately
be subject to the Market Stand-Off.

     16. Effective Date of Plan.

          The Plan shall become effective as of the Effective Date, but no Award shall be exercised (or,
in the case of a stock Award, shall be granted) unless and until the Plan has been approved by the
stockholders of the Company, which approval shall be within twelve (12) months before or after the
date the Plan is adopted by the Board.

     17. Termination or Suspension of the Plan.

          The Plan shall terminate automatically on the day before the 10th anniversary of the Effective
Date. No Award shall be granted pursuant to the Plan after such date, but Awards theretofore
granted may extend beyond that date. The Board may suspend or terminate the Plan at any earlier
date pursuant to Section 13.1 hereof. No Awards may be granted under the Plan while the
Plan is suspended or after it is terminated.

					
	 	 	 	 	 
	 
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     18. Choice of Law.

          The law of the State of Delaware shall govern all questions concerning the construction,
validity and interpretation of this Plan, without regard to such state’s conflict of law rules.

     19. Execution.

          To record the adoption of the Plan by the Board, the Company has caused its authorized officer
to execute the Plan as of the date specified below.

[SIGNATURE PAGE FOLLOWS]

					
	 	 	 	 	 
	 
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	 	VCA Antech, Inc. 2006 Equity Incentive Plan
	 	 	 	 	 

 

 

          IN WITNESS WHEREOF, upon authorization of the Board of Directors, the undersigned has caused
the VCA Antech, Inc. 2006 Equity Incentive Plan to be executed effective as of the 7th day of
March, 2006.

	 	 	 	 	 
	 	 	VCA ANTECH, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Robert L. Antin, Chief Executive Officer and President

Signature
Page

VCA Antech, Inc. 2006 Equity Incentive Plan

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