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Exhibit 10.3  

 
 

LIMITED WAIVER AND THIRD AMENDMENT
  TO AMENDED AND RESTATED CREDIT AGREEMENT    
  

        This LIMITED WAIVER AND THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this
"Waiver and Amendment") is dated as of February 3, 2003 and entered into by and among PETCO ANIMAL
SUPPLIES, INC., a Delaware corporation ("Company"), the financial institutions executing the Consent of Lender (the
"Consent") in the form of Exhibit A annexed hereto, and WELLS FARGO BANK, NATIONAL ASSOCIATION
("Wells Fargo"), as administrative agent for Lenders (in such capacity, "Administrative Agent"), and is
made with reference to that certain Amended and Restated Credit Agreement dated as of October 26, 2001, as amended by the Limited Waiver, Consent and Amendment Regarding Initial Public Offering
dated as of February 1, 2002 and as further amended by the Second Amendment to Amended and Restated Credit Agreement dated as of July 31, 2002 (as so amended, the
"Credit Agreement"), by and among Company, Lenders, Administrative Agent, GOLDMAN SACHS CREDIT PARTNERS
L.P., as Syndication Agent, and GENERAL ELECTRIC CAPITAL CORPORATION, as Documentation Agent. Capitalized terms used herein
without definition shall have the same meanings herein as set forth in the Credit Agreement. 

 
 

RECITALS    
  

        WHEREAS, Company and Lenders desire to waive certain requirements of subsections 2.4B(iii)(d) and 7.5 of the
Credit Agreement in connection with the Offering (as defined below), to amend subsections 1.1, 7.5, 7.8 and 8.11 of the Credit Agreement, and to waive the requirements of subsection 2.4B(iii)(e) for
the Fiscal Year ending February 1, 2003, subject to the terms and conditions set forth herein. 

        NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree
as follows: 

Section 1. EFFECTIVENESS  

        This Waiver and Amendment shall become effective as of the date hereof upon (i) the execution of counterparts hereof by Company and counterparts of the
Consents by Lenders constituting Requisite
Lenders and receipt by Company and the Administrative Agent of written or telephonic notification of such execution and authorization of delivery thereof, (ii) the receipt by Administrative
Agent for the account of each Lender that executes this Waiver and Amendment prior to 12:00 Noon, New York Time, January 31, 2003 of a waiver effectiveness fee equal to 0.125% of the sum of
such Lender's Revolving Loan Commitment and the principal amount of the Term Loans held by such Lender and (iii) the receipt by Administrative Agent of counterparts of the Waiver and Amendment
Confirmation dated as of the date hereof in the form of Exhibit B annexed hereto (the "Waiver Confirmation"), executed by each of the Loan
Parties; provided, however, if the Offering is not consummated on or before May 31, 2003, the waiver set forth in Section 2(a) shall
terminate and shall be of no further force and effect and the amendment set forth in Section 3(d) shall not become effective. 

Section 2. WAIVERS  

        (a)  Subject
to the terms and conditions set forth herein and in reliance on the representations and warranties of Company herein contained, Lenders hereby waive compliance
with the provisions of subsections 2.4B(iii)(d) and 7.5 of the Credit Agreement to the extent, and only to the extent, necessary to permit Company to (A) use 100% of the Net Equity Securities
Proceeds of the Offering (as defined below) to redeem or repurchase from time to time up to $40.0 million in aggregate principal amount of its New Senior Subordinated Notes plus any redemption
premiums, interest and transaction expenses related to such redemptions or repurchases and (B) retain any Net Equity Securities Proceeds of the Offering in excess of the amounts applied under
the immediately preceding clause (A); provided that (x) the Offering shall be consummated on or before May 31, 2003, (y) the
Net 

Equity Securities Proceeds of the Offering shall be at least $40.0 million, and (z) simultaneously with the consummation of the Offering, Company shall pay to Administrative Agent for
the account of each Lender that executes this Waiver and Amendment prior to 12:00 Noon, New York Time, January 31, 2003 an offering consummation fee equal to 0.125% of the sum of such Lender's
Revolving Loan Commitment and the principal amount of the Term Loans held by such Lender, it being understood that such offering consummation fee shall not be payable unless the Offering is
consummated. 

        As
used in this Waiver and Amendment, the term "Offering" shall mean a public offering of Company's common stock, including the exercise
of any overallotment option by the underwriters in connection therewith. 

        (b)  Subject
to the terms and conditions set forth herein and in reliance on the representations and warranties of the Company herein contained, Lenders hereby waive
compliance with the provisions of subsection 2.4B(iii)(e) for the Fiscal Year ending February 1, 2003. 

Section 3. AMENDMENTS  

        (a)  Subsection
1.1 of the Credit Agreement is hereby amended by adding thereto the following definitions, which shall be inserted in proper alphabetical order: 

        "Third Amendment" means the Limited Waiver and Third Amendment to Amended and Restated Credit Agreement, dated as of February 3,
2003, by and among Company, Requisite Lenders and Administrative Agent. 

        "Transaction Costs" means the fees, costs and expenses payable or reimbursable by Company or any of its Subsidiaries in connection with
the transactions contemplated by (i) the Loan Documents and the Related Agreements, (ii) the refinancing of the Existing Senior Subordinated Notes, (iii) the Limited Waiver,
Consent and Amendment Regarding Initial Public Offering dated as of February 1, 2002, (iv) the Second Amendment and (v) the Third Amendment. 

        (b)  Subsection
7.5 of the Credit Agreement is hereby amended by adding a new clause (v) at the end thereof: 

        ",
and (v) Company may from and after the date of the Third Amendment (i) redeem or repurchase from time to time through the date which is 270 days after the closing
of the Offering (as defined in the Third Amendment) up to $40.0 million in aggregate principal amount of its New Senior Subordinated Notes with the Net Equity Securities Proceeds of the
Offering as permitted by Section 2(a) of the Third Amendment and (ii) redeem or repurchase from time to time up to an additional $50.0 million in aggregate principal amount of its
New Senior Subordinated Notes, provided that at the time of any redemption or repurchase pursuant to clause (ii) of this subsection 7.5(v), after giving effect to such redemption or repurchase
(including the incurrence of any Indebtedness in connections therewith), the Company's Consolidated Pro Forma Senior Leverage Ratio is less than or equal to 1.25:1.00." 

        (c)  Subsection
7.8 of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 

        "Company
shall not, and shall not permit its Subsidiaries to, make or incur Consolidated Capital Expenditures in an aggregate amount in excess of (x) $68,860,710 for the Fiscal
Year ending on the Saturday closest to January 31 in 2003, (y) $85,000,000 for each Fiscal Year ending on the Saturday closest to January 31 in 2004 and 2005, and
(z) $90,000,000 for each Fiscal Year thereafter (such amount, for each Fiscal Year, the "Maximum Expenditure Amount"),  provided that the Maximum
Expenditure Amount for any Fiscal Year, beginning with the Fiscal Year ending in 2004, shall be increased by an
amount equal to the excess, if any, of the Maximum Expenditure Amount for the previous year (without giving effect to any previous adjustment made in accordance with this proviso) over the actual
amount of Consolidated Capital Expenditures for such previous Fiscal Year, but in no event shall such increase exceed 10% of the Maximum Expenditure Amount for such previous Fiscal Year,  provided, further that notwithstanding the limitations set forth in clauses (x), (y) and (z) herein,
 

Company may make or incur additional Consolidated Capital Expenditures from and after the date of the Third Amendment in an aggregate amount not to exceed $15 million for the purpose of
purchasing the land and improvements comprising Company's corporate headquarters (or a portion thereof)." 

        (d)  Subject
to the effectiveness of the waiver set forth in Section 2(a), subsection 8.11 of the Credit Agreement is hereby amended by deleting all references to
"35%" therein and substituting "20%" therefor. 

SECTION 4. LIMITATION OF WAIVERS  

        Without limiting the generality of the provisions of subsections 10.6, 10.7 and 10.10 of the Credit Agreement, the waivers set forth above shall be limited
precisely as written and relate solely to the noncompliance by Company with the provisions of subsections 2.4B(iii)(d), 2.4B(iii)(e) and 7.5 of the Credit Agreement in the manner and to the extent
described above, and nothing in this Waiver and Amendment shall be deemed to: 

        (a)  constitute
a waiver of compliance by Company with respect to (i) subsections 2.4 or 7.5 of the Credit Agreement in any other instance or (ii) any other
term, provision or condition of the Credit Agreement or any other instrument or agreement referred to therein (whether in connection with the Offering or otherwise); or 

        (b)  prejudice
any right or remedy that the Administrative Agent or any Lender may now have or may have in the future under or in connection with the Credit Agreement or any
other instrument or agreement referred to therein. 

        Except
as expressly set forth herein, the terms, provisions and conditions of the Credit Agreement and the other Loan Documents shall remain in full force and effect and in all other
respects are hereby ratified and confirmed. 

SECTION 5. REPRESENTATIONS AND WARRANTIES  

        In order to induce Lenders to enter into this Waiver and Amendment, Company hereby represents and warrants that after giving effect to this Waiver and Amendment: 

        (a)  as
of the date hereof, there exists no Event of Default or Potential Event of Default under the Credit Agreement; 

        (b)  all
representations and warranties contained in the Credit Agreement and the other Loan Documents are true, correct and complete in all material respects on and as of
the date hereof except to the extent such representations and warranties specifically relate to an earlier date, in which case they were true, correct and complete in all material respects on and as
of such earlier date; and 

        (c)  as
of the date hereof, Company has performed all agreements to be performed on its part as set forth in the Credit Agreement. 

Section 6. COUNTERPARTS  

        This Waiver and Amendment may be executed in any number of counterparts and by different parties hereto and thereto in separate counterparts, each of which when
so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. 

Section 7. REFERENCE TO AND EFFECT ON THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS  

        On and after the date hereof, each reference in the Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or words of like import referring to the
Credit Agreement, and each reference in the other Loan Documents to the "Credit Agreement", "thereunder", "thereof" or words 

of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended by this Waiver and Amendment. 

Section 8. GOVERNING LAW  

        THIS WAIVER AND AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT
REGARD TO CONFLICTS OF LAWS PRINCIPLES.

[Remainder of page intentionally left bank]

        IN WITNESS WHEREOF, the parties hereto have caused this Waiver and Amendment to be duly executed and delivered by their respective
officers thereunto duly authorized as of the date first written above. 

	COMPANY:	 	 	 
	

 	
 	

PETCO ANIMAL SUPPLIES, INC.
	

 	
 	

By:	

/s/  JAMES M. MYERS      
	 	 	 	
 Name: James M. Myers

Title: Executive Vice President and Chief Financial Officer
	
ADMINISTRATIVE AGENT:	
 	

 	

 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent
	

 	
 	

By:	

/s/  ALEX Y. KIM      
	 	 	 	
 Name: Alex Y. Kim

Title: Vice President
	
LENDERS:	
 	

 	

 
	 	 	Per Individual Consents executed by each signing Lender

 
 

EXHIBIT A
  CONSENT OF LENDER    
  

        This Consent of Lender is delivered by the undersigned Lender with reference to that certain Amended and Restated Credit Agreement dated as of October 26,
2001, as amended by the Limited Waiver, Consent and Amendment Regarding Initial Public Offering dated as of February 1, 2002 and as further amended by the Second Amendment to Amended and
Restated Credit Agreement dated as of July 31, 2002 by and among Petco Animal Supplies, Inc., a Delaware corporation, the Lenders from time to time party thereto ("Lenders"), Wells Fargo
Bank, National Association, as Administrative Agent, Goldman Sachs Credit Partners L.P., as Syndication Agent, and General Electric Capital Corporation, as Documentation Agent. The undersigned Lender
hereby consents to the Limited Waiver and Third Amendment to Amended and Restated Credit Agreement dated as of February 3, 2003. 

	 	 	
 [Name of Lender]
	 	 	By:	 	 
	 	 	 	 	

	 	 	Name:	 	 
	 	 	 	 	

	 	 	Title:	 	 
	 	 	 	 	

 
 

EXHIBIT B
  WAIVER AND AMENDMENT CONFIRMATION    
  

        This WAIVER AND AMENDMENT CONFIRMATION is dated as of February 3, 2003 (the "Waiver
Confirmation") and entered into by and among PETCO ANIMAL SUPPLIES, INC., a Delaware corporation
("Company"), INTERNATIONAL PET SUPPLIES AND DISTRIBUTION, INC., a
California corporation ("IPSD"), PETCO SOUTHWEST, INC., a California corporation
("Southwest Inc."), PETCO SOUTHWEST, L.P., a California limited partnership
("Southwest L.P."), PET CONCEPTS INTERNATIONAL, a California corporation ("Pet
Concepts"), PM MANAGEMENT INCORPORATED, a California corporation ("PM
Management") (collectively the "Loan Parties") and WELLS FARGO BANK, NATIONAL
ASSOCIATION, as administrative agent for and representative of (in such capacity the "Secured Party") the financial institutions
("Lenders") party to the Credit Agreement referred to below. 

 
 

R E C I T A L S    
  

        WHEREAS, pursuant to that certain Amended & Restated Credit Agreement dated as of October 26, 2001,
as amended by the Limited Waiver, Consent and Amendment Regarding Initial Public Offering dated as of February 1, 2002 and as further amended by the Second Amendment to Amended and Restated
Credit Agreement dated as of July 31, 2002 by and among Company, Secured Party, Goldman Sachs Credit Partners, L.P., as syndication agent (in such capacity the
"Syndication Agent"), General Electric Capital Corporation, as documentation agent (in such capacity the "Documentation
Agent") and the Lenders named therein (as amended, the "Credit Agreement", the terms defined therein and not otherwise defined
herein being used herein as therein defined), Lenders extended the credit facilities set forth in the Credit Agreement to Company; and 

        WHEREAS, pursuant to the terms of the Credit Agreement (i) each Loan Party pledged and granted a security interest in certain of
its real property, (ii) each domestic Loan Party pledged all of its capital stock in each of its subsidiaries, whether then existing or thereafter created or acquired, (iii) each of
IPSD, Southwest Inc., Southwest L.P., Pet Concepts and PM Management guaranteed the obligations of Company and (iv) each Loan Party granted a security interest in substantially all of
its assets to the Secured Party; and 

        WHEREAS, Company, Lenders and Secured Party desire to waive and amend certain provisions of the Credit Agreement pursuant to the Limited
Waiver and Third Amendment to Amended and Restated Credit Agreement, dated as of February 3, 2003 (the "Waiver and Amendment"); 

        NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each Loan Party and the Secured Party hereby agrees as follows: 

Section 1. CONFIRMATION.  

        (a)  Each
Loan Party hereby acknowledges that it has reviewed the terms and provisions of the Waiver and Amendment and consents to the Waiver and Amendment and this Waiver
Confirmation. Each Loan Party hereby confirms that each Credit Support Document to which it is a party or otherwise bound, and all Collateral encumbered thereby will continue to guaranty or secure, as
the case may be, to the fullest extent possible the payment and performance of all "Obligations," "Guarantied Obligations" and "Secured Obligations" as the case may be (in each case as the applicable
terms are defined in the applicable Credit Support Document), including, without limitation, the payment and performance of all such "Obligations," "Guarantied Obligations" and "Secured Obligations,"
as the case may be, in respect of the Obligations of each of the Loan Parties now or hereafter existing under or in respect of the Credit Agreement and the Notes defined therein. 

        (b)  Each
Loan Party acknowledges and agrees that any of the Credit Support Documents to which it is a party or otherwise bound, shall continue in full force and effect and
that all of its 

obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of the Waiver and Amendment. 

        (c)  Each
Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in the Waiver and Amendment, such Guarantor is not
required by the terms of either the Credit Agreement or any other Loan Document to consent to the Waiver and Amendment and (ii) nothing in the Credit Agreement or any other Loan Document shall
be deemed to require the consent of such Guarantor to any future amendments of or waivers to the Credit Agreement. 

Section 2. MISCELLANEOUS.  

        (a)  The
execution, delivery and performance of this Waiver Confirmation shall not, except as expressly provided herein, constitute a waiver of any provision of, or operate
as a waiver of any right, power or remedy of the Secured Party or of any Lender under, the Credit Agreement or any of the other Loan Documents. 

        (b)  THIS WAIVER CONFIRMATION SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

        (c)  This
Waiver Confirmation may be executed in any number of counterparts, and by different parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart
so that all signature pages are physically attached to the same document.In witness whereof, the parties hereto have caused this Waiver Confirmation to be duly executed and delivered as of the date
first written above. 

	 	 	PETCO ANIMAL SUPPLIES, INC.
	 	 	By	 	 	 	 
	 	 	 	 	

	

 	
 	

 	
 	

Name:	
 	

James M. Myers
	 	 	 	 	Title:	 	Executive Vice President and Chief Financial Officer
	

 	
 	

 	
 	

Address:	
 	

9125 Rehco Road

San Diego, California 92121
	

 	
 	
INTERNATIONAL PET SUPPLIES AND DISTRIBUTION, INC.
	

 	
 	

By	
 	

 	
 	

 
	 	 	 	 	

	

 	
 	

 	
 	

Name:	
 	

James M. Myers
	 	 	 	 	Title:	 	Senior Vice President and Chief Financial Officer
	

 	
 	

 	
 	

Address:	
 	

9125 Rehco Road

San Diego, California 92121

	 	 	PETCO SOUTHWEST, INC.
	

 	
 	

By	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	James M. Myers
	 	 	 	 	Title:	 	Senior Vice President and Chief Financial Officer
	

 	
 	

 	
 	

Address:	
 	

9125 Rehco Road

San Diego, California 92121
	

 	
 	
PET CONCEPTS INTERNATIONAL
	

 	
 	

By	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	James M. Myers
	 	 	 	 	Title:	 	Senior Vice President and Chief Financial Officer
	

 	
 	

 	
 	

Address:	
 	

9125 Rehco Road

San Diego, California 92121
	

 	
 	
PM MANAGEMENT INCORPORATED
	

 	
 	

By	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	James M. Myers
	 	 	 	 	Title:	 	Senior Vice President and Chief Financial Officer
	

 	
 	

 	
 	

Address:	
 	

9125 Rehco Road

San Diego, California 92121
	

 	
 	
PETCO SOUTHWEST, L.P.
	 	 	    by PETCO ANIMAL SUPPLIES, INC.

    Its General Partner
	

 	
 	

By	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	James M. Myers
	 	 	 	 	Title:	 	Executive Vice President and Chief Financial Officer
	

 	
 	

 	
 	

Address:	
 	

9125 Rehco Road

San Diego, California 92121
	

 	
 	
WELLS FARGO BANK, NATIONAL ASSOCATION

as Secured Party
	

 	
 	

By	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	Alex Y. Kim
	 	 	 	 	Title:	 	Vice President
	

 	
 	

 	
 	

Address:	
 	

333 South Grand Avenue, 9th Floor

Los Angeles, California 90071

 
 

EXHIBIT A
  CONSENT OF LENDER    
  

        This Consent of Lender is delivered by the undersigned Lender with reference to that certain Amended and Restated Credit Agreement dated as of October 26,
2001, as amended by the Limited Waiver, Consent and Amendment Regarding Initial Public Offering dated as of February 1, 2002 and as further amended by the Second Amendment to Amended and
Restated Credit Agreement dated as of July 31, 2002 by and among Petco Animal Supplies, Inc., a Delaware corporation, the Lenders from time to time party thereto ("Lenders"), Wells Fargo
Bank, National Association, as Administrative Agent, Goldman Sachs Credit Partners L.P., as Syndication Agent, and General Electric Capital Corporation, as Documentation Agent. The undersigned Lender
hereby consents to the Limited Waiver and Third Amendment to Amended and Restated Credit Agreement dated as of February 3, 2003. 

	 	 	
 [Name of Lender]
	 	 	By:	 	 
	 	 	 	 	

	 	 	Name:	 	 
	 	 	 	 	

	 	 	Title:	 	 
	 	 	 	 	

 
 

EXHIBIT B
  WAIVER AND AMENDMENT CONFIRMATION    
  

        This WAIVER AND AMENDMENT CONFIRMATION is dated as of February 3, 2003 (the "Waiver
Confirmation") and entered into by and among PETCO ANIMAL SUPPLIES, INC., a Delaware corporation
("Company"), INTERNATIONAL PET SUPPLIES AND DISTRIBUTION, INC., a California corporation
("IPSD"), PETCO SOUTHWEST, INC., a California corporation
("Southwest Inc."), PETCO SOUTHWEST, L.P., a California limited partnership
("Southwest L.P."), PET CONCEPTS INTERNATIONAL, a California corporation ("Pet
Concepts"), PM MANAGEMENT INCORPORATED, a California corporation ("PM
Management") (collectively the "Loan Parties") and WELLS FARGO BANK, NATIONAL
ASSOCIATION, as administrative agent for and representative of
(in such capacity the "Secured Party") the financial institutions ("Lenders") party to the Credit
Agreement referred to below. 

 
 

R E C I T A L S    
  

        WHEREAS, pursuant to that certain Amended & Restated Credit Agreement dated as of October 26, 2001,
as amended by the Limited Waiver, Consent and Amendment Regarding Initial Public Offering dated as of February 1, 2002 and as further amended by the Second Amendment to Amended and Restated
Credit Agreement dated as of July 31, 2002 by and among Company, Secured Party, Goldman Sachs Credit Partners, L.P., as syndication agent (in such capacity the
"Syndication Agent"), General Electric Capital Corporation, as documentation agent (in such capacity the "Documentation
Agent") and the Lenders named therein (as amended, the "Credit Agreement", the terms defined therein and not otherwise defined
herein being used herein as therein defined), Lenders extended the credit facilities set forth in the Credit Agreement to Company; and 

        WHEREAS, pursuant to the terms of the Credit Agreement (i) each Loan Party pledged and granted a security interest in certain of
its real property, (ii) each domestic Loan Party pledged all of its capital stock in each of its subsidiaries, whether then existing or thereafter created or acquired, (iii) each of
IPSD, Southwest Inc., Southwest L.P., Pet Concepts and PM Management guaranteed the obligations of Company and (iv) each Loan Party granted a security interest in substantially all of
its assets to the Secured Party; and 

        WHEREAS, Company, Lenders and Secured Party desire to waive and amend certain provisions of the Credit Agreement pursuant to the Limited
Waiver and Third Amendment to Amended and Restated Credit Agreement, dated as of February 3, 2003 (the "Waiver and Amendment"); 

        NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each Loan Party and the Secured Party hereby agrees as follows: 

Section 1. CONFIRMATION.  

        (a)  Each
Loan Party hereby acknowledges that it has reviewed the terms and provisions of the Waiver and Amendment and consents to the Waiver and Amendment and this Waiver
Confirmation. Each Loan Party hereby confirms that each Credit Support Document to which it is a party or otherwise bound, and all Collateral encumbered thereby will continue to guaranty or secure, as
the case may be, to the fullest extent possible the payment and performance of all "Obligations," "Guarantied
Obligations" and "Secured Obligations" as the case may be (in each case as the applicable terms are defined in the applicable Credit Support Document), including, without limitation, the payment and
performance of all such "Obligations," "Guarantied Obligations" and "Secured Obligations," as the case may be, in respect of the Obligations of each of the Loan Parties now or hereafter existing under
or in respect of the Credit Agreement and the Notes defined therein. 

        (b)  Each
Loan Party acknowledges and agrees that any of the Credit Support Documents to which it is a party or otherwise bound, shall continue in full force and effect and
that all of its 

obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of the Waiver and Amendment. 

        (c)  Each
Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in the Waiver and Amendment, such Guarantor is not
required by the terms of either the Credit Agreement or any other Loan Document to consent to the Waiver and Amendment and (ii) nothing in the Credit Agreement or any other Loan Document shall
be deemed to require the consent of such Guarantor to any future amendments of or waivers to the Credit Agreement. 

Section 2. MISCELLANEOUS.  

        (a)  The
execution, delivery and performance of this Waiver Confirmation shall not, except as expressly provided herein, constitute a waiver of any provision of, or operate
as a waiver of any right, power or remedy of the Secured Party or of any Lender under, the Credit Agreement or any of the other Loan Documents. 

        (b)  THIS WAIVER CONFIRMATION SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

        (c)  This
Waiver Confirmation may be executed in any number of counterparts, and by different parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and
attached to a single counterpart so that all signature pages are physically attached to the same document.In witness whereof, the parties hereto have caused this Waiver Confirmation to be duly
executed and delivered as of the date first written above. 

	 	 	PETCO ANIMAL SUPPLIES, INC.
	 	 	By	 	 	 	 
	 	 	 	 	

	

 	
 	

 	
 	

Name:	
 	

James M. Myers
	 	 	 	 	Title:	 	Executive Vice President and Chief Financial Officer
	

 	
 	

 	
 	

Address:	
 	

9125 Rehco Road

San Diego, California 92121
	

 	
 	
INTERNATIONAL PET SUPPLIES AND DISTRIBUTION, INC.
	

 	
 	

By	
 	

 	
 	

 
	 	 	 	 	

	

 	
 	

 	
 	

Name:	
 	

James M. Myers
	 	 	 	 	Title:	 	Senior Vice President and Chief Financial Officer
	

 	
 	

 	
 	

Address:	
 	

9125 Rehco Road

San Diego, California 92121

	 	 	PETCO SOUTHWEST, INC.
	

 	
 	

By	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	James M. Myers
	 	 	 	 	Title:	 	Senior Vice President and Chief Financial Officer
	

 	
 	

 	
 	

Address:	
 	

9125 Rehco Road

San Diego, California 92121
	

 	
 	
PET CONCEPTS INTERNATIONAL
	

 	
 	

By	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	James M. Myers
	 	 	 	 	Title:	 	Senior Vice President and Chief Financial Officer
	

 	
 	

 	
 	

Address:	
 	

9125 Rehco Road

San Diego, California 92121
	

 	
 	
PM MANAGEMENT INCORPORATED
	

 	
 	

By	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	James M. Myers
	 	 	 	 	Title:	 	Senior Vice President and Chief Financial Officer
	

 	
 	

 	
 	

Address:	
 	

9125 Rehco Road

San Diego, California 92121
	

 	
 	
PETCO SOUTHWEST, L.P.
	 	 	    by PETCO ANIMAL SUPPLIES, INC.

    Its General Partner
	

 	
 	

By	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	James M. Myers
	 	 	 	 	Title:	 	Executive Vice President and Chief Financial Officer
	

 	
 	

 	
 	

Address:	
 	

9125 Rehco Road

San Diego, California 92121
	

 	
 	
WELLS FARGO BANK, NATIONAL ASSOCATION

as Secured Party
	

 	
 	

By	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	Alex Y. Kim
	 	 	 	 	Title:	 	Vice President
	

 	
 	

 	
 	

Address:	
 	

333 South Grand Avenue, 9th Floor

Los Angeles, California 90071

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LIMITED WAIVER AND THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

RECITALS

EXHIBIT A CONSENT OF LENDER

EXHIBIT B WAIVER AND AMENDMENT CONFIRMATION

R E C I T A L S

EXHIBIT A CONSENT OF LENDER

EXHIBIT B WAIVER AND AMENDMENT CONFIRMATION

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Exhibit 4.24    
  

 
 

Autonomy Systems Ltd
  Staff in Confidence    
  

 
  Terms and conditions of employment    
  

        This document sets forth the terms of employment between you, Sushovan Hussain, and Autonomy Systems Ltd (the "Company"). In signing this contract you
acknowledge that you have read and agree to the terms set out below. 

1.    Job Title & Role  

        Your job title will be Finance Director (Europe), and as such you will have general responsibility for the financial affairs of the Company throughout the UK and
Europe. You will perform such duties as may from time to time be assigned to you under the authority of the Board of Directors. You will be based at the office in Cambridge, however, you will be
expected to undertake travel within Europe or elsewhere overseas as the Company deems necessary for the effective performance of your duties. 

2.    Commencement  

        Your employment and your period of continuous employment for the purposes of the Employment Rights Act 1996 commenced on 27 June 2001. 

3.    Remuneration  

Salary  

        Your basic salary is £100,000 per annum to be reviewed annually at the complete discretion of the Company. This salary will be paid monthly in arrears
into a nominated bank account. 

Grant of Stock Options  

        Subject to the approval of the Board of Directors of Autonomy Corporation plc, you shall be granted 50,000 Autonomy Corporation share options. Of these, one
quarter shall vest after 12 months employment, and the remaining three quarters shall vest in equal quarterly instalments over the following 36 months. These options will be granted in
accordance with the Autonomy Corporation Share Option Scheme and have an exercise price equal to the fair market value on the date hereof. 

Pensions & Health Cover  

        There are no pension provisions or health insurance arrangements relating to your employment. You will be contracted into the State pension scheme. 

4.    Expenses  

        The Company will reimburse you such travelling (other than between home and your usual place of work), hotel, entertainment and other
out-of-pocket expenses as you reasonably and properly incur during the course of your work with the Company's consent upon your submitting to the Company satisfactory
information and evidence of the same. The Company's expenses protocol contains further details of its policy on expenses, which will be supplied upon request. 

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5.    Hours of work; Exclusive Employment  

	(a)
	Your
normal working week will consist of 37.5 hours from 0930 hours to 1800 hours Monday to Friday with a one hour lunch break. However, you agree to work such additional hours
as may be necessary for the proper and efficient performance of your duties without additional remuneration. You agree that the limit on average weekly working time set out in paragraph 4(1) of
the Working Time Regulations 1998 will not apply to you, although you may withdraw your consent on giving the Company 3 months prior written notice.

	(b)
	During
working hours you are expected to work exclusively for the Company. Outside working hours you may not undertake any secondary employment or occupation without the consent of
your supervisor, such consent not to be unreasonably withheld or delayed. This is to ensure that any outside work does not interfere with the efficient performance of your duties or give rise to a
conflict of interest. Any consent given by the Company may be withdrawn if the Company subsequently finds that in fact your secondary employment or occupation is interfering with the efficient
performance of your duties or gives rise to a conflict of interest. The Company may then require you to cease such employment or occupation. 

6.    Holidays  

	(a)
	In
addition to normal public holidays, you are entitled to 23 days of paid holiday in each calendar year of service, or pro rata for incomplete years. Up to 5 days
unused holidays may be carried over to following years at the discretion of the Company.

	(b)
	Salary
may be deducted for any holiday taken in excess of your entitlement. The times at which you take your holiday are to be agreed jointly with your manager. Up to 3 days of
your entitlement are reserved to be allocated by the Company in order to provide an extended Christmas shutdown.

	(c)
	On
the termination of your employment with the Company, the Company may at its discretion:

	(i)
	require
you to take, during your notice period, any holiday entitlement which will have accrued to you by the date of termination of your employment, which you have not yet taken; or

	(ii)
	pay
you in lieu of accrued but untaken holiday. 

7.    Termination of Employment  

	(a)
	During
the first six months of your employment, your employment may be terminated by either you or the Company giving the other three months notice in writing. Following the first six
months of your employment in good standing, your employment may be terminated by either you or the Company giving the other six months notice in writing.

	(b)
	Your
employment may also be terminated by the Company without notice or payment in lieu of notice, in the event of gross misconduct, examples of which are provided in the Company's
disciplinary rules, or if you commit a material breach of the terms of this contract such as breach of confidentiality, discipline or security. The disciplinary rules do not form part of this contract
and may be amended by the Company from time to time.

	(c)
	The
Company shall be entitled to terminate your employment summarily on making you a payment of your basic salary (less tax and other statutory deductions) in lieu of notice. 

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	(d)
	The
Company shall be under no obligation to provide you with work during any period of notice to terminate your employment, whether given by the Company or by you. During such period
the Company may suspend you from employment, require you to cease carrying out your duties or having any dealings with the Company's employees, suppliers, agents, or customers and may exclude you from
any premises of the company. You will continue to receive your salary and all contractual benefits provided by your employment. 

8.    Absence  

        When you are unable to attend work for any reason, your manager should be informed as soon as possible, and in any event, no later than 9.30 am on the day of
absence. 

9.    Medical & Sickness  

	(a)
	During
periods of absence from work due to sickness or injury you will be entitled to receive Statutory Sick Pay ("SSP") at the appropriate rate, subject to any statutory exceptions
which may apply to you. Any payment of salary additional to SSP will be entirely at the discretion of the Company.

	(b)
	The
Rules relating to payment of SSP have been laid down by the DHSS and may be summarised as follows:

	(i)
	No
SSP is payable for the first three days of a period of incapacity for work, unless these are linked to a previous period of incapacity as set out at (iii) below. These first
three days are referred to as "waiting days".

	(ii)
	Provided
the certification set out at paragraph 10(c) below is supplied by you, SSP will be payable for all qualifying days in a period of incapacity for work up to a maximum
of 140 days. Qualifying days are of the week on which you are required to be available for work within the terms of your contract.

	(iii)
	If
two periods of incapacity for work are linked by 56 days or less and provided you have completed three waiting days in the first period of incapacity, these will count as
waiting days for the purpose of the second period and the first day of absence in the second period will qualify for payment of SSP. 

	(c)
	Payment
of SSP (or any other payment during sickness) is conditional upon your notifying the Company of your incapacity for work by midday on the first day of your absence and upon
certifying your absence as follows:

	(i)
	For
absences of up to 7 successive calendar days inclusive you must on your to work complete and sign the Sickness Declaration form, copies of which you may obtain from your immediate
supervisor;

	(ii)
	For
absences of 8 successive calendar days or more you must supply a medical certificate signed by a Doctor and keep the Company regularly informed about your expected date of return
to work. 

	(d)
	The
Company may from time to time require you to be examined by a medical advisor nominated by the Company, and you consent to the medical advisor disclosing the results of the
examination to the Company. 

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10.  Safety and Security  

        You will be expected to comply with such safety and security procedures which the Company may from time to time issue to meet, or improve upon, any legal
obligations applicable to its operation. You will be expected to take all reasonable precautions to ensure your own safety and that of others, directly or indirectly likely to be affected by your
actions. 

11.  Discipline and Grievance Procedures  

        Copies of the Company's disciplinary and grievance policies are located in the Company's main offices in Cambridge. The policies do not have contractual force and
may be varied from time to time. 

12.  Confidential Information  

	(a)
	You
agree that during your employment and at any time thereafter, you will not without the prior written authorisation of the Company make use of or disclose directly or indirectly to
any third party or parties or make use of any of the trade secrets or other any confidential information of the Company or any other information concerning the business of the Company, which you may
have received or obtained in confidence while in the service of the Company. You will likewise use your best endeavours to prevent the unauthorised publication or disclosure or any such trade secrets
or confidential information.

	(b)
	You
also agree that you will not use (save as in the proper course of your employment or as required by law) any information or knowledge which you acquire in relation to the
businesses of the Company or its customers for your own or other purposes except where such information or knowledge is or becomes in the public domain other than through your own breach of
confidentiality or is ordered to be disclosed by a Court of competent jurisdiction or otherwise required to be disclosed by law. Nothing in this clause will prevent you making a "protected disclosure"
within the meaning of the Public Interest Disclosure Act 1998.

	(c)
	For
the purposes of this Agreement confidential information shall include, but shall not be limited to the Company's marketing and business plans and budgets and other confidential
financial data such as management accounts and bank details; details of salaries, bonuses, commissions and other employment terms applicable within the Company; the names and addresses of customers
and potential customers with whom the Company is in negotiations to supply its services, including customer lists in whatever medium this information is stored and details of contacts at those
customers; the terms and rates on which the Company trades with its customers and suppliers; and information which the Company is bound by an obligation of confidence owed to a third party.

	(d)
	You
further agree that all data, drawings, specifications or other documents, notes or media supplied to you by the Company, or prepared by you in the course of your employment and
all rights therein, belong to the Company and will be returned promptly on request or on termination of your employment, together with all copies of such data, drawings, specifications, other
documents, notes or media that you may have in your possession. 

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13.  Post Termination Covenants  

        You agree that during your employment with the Company or within 6 months of its termination howsoever arising, you shall not without the written consent
of the Company (such consent only to be withheld so far as may be reasonably necessary to protect the interests of the Company), either alone or jointly with, or on behalf of any other person, firm,
company, business or other organisation which competes with the business of the Company: 

	(i)
	carry
on or be concerned or engaged or interested in any business anywhere which competes with the business of the Company with which you were involved at any time or times during the
period of 2 years prior to the date of termination; or

	(ii)
	directly
or indirectly provide services or offer to provide services of a type which compete with those provided by the Company to any of the Company's customers, with whom you had
business dealings or about whom you were privy to confidential information during the last 12 months of your employment.

	(iii)
	directly
or indirectly, solicit or endeavour to entice away from the Company any of its directors, marketing managers, senior sales staff or any other senior staff or any of their
consultants, who are employed or engaged by the Company at the date your employment is terminated (or at any time in the six months prior thereto if they have left due to solicitation on your part)
and with whom you had contact during the last 12 months of your employment; or

	(iv)
	solicit
or endeavour to entice away from the Company any of its clients, suppliers, customers, distributors or agents with whom you were concerned or dealt with during the last
12 months of your employment. 

14.  Inventions  

        Subject to the provisions of the Patents Act 1977 (as amended from time to time), you agree that all inventions, improvements and other intellectual property
rights (including, without limit, data base rights, copyrights, trade marks and domain names) (the "Works") which in the course of your employment under this contract you produce, develop, create or
invent, alone or in conjunction with others, relating to the products or business area of the Company or any associated company, shall be the exclusive property of the Company, and you will promptly
disclose the same to your manager but otherwise keep the same strictly confidential. You hereby assign to the Company all rights, title and interest you may have in the Works. You further agree that
the copyright in any Work shall belong to the Company. You further agree that you will execute all papers and documents as requested by the Company to apply for registration, letters patent or other
protection for the Works in the Company's name and to vest title to such intellectual property rights in the Works to the Company, at the Company's expense. To the fullest extent permitted by law, you
hereby irrevocably waive all moral rights (and any rights of a similar nature anywhere in the world) in any of the Works." 

15.  Other Interests  

        You confirm that you do not have, and will not have without the prior consent of the Company, any third-party obligations which would conflict with, or be
prejudicial to, the interests of the Company. 

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16.  General  

	(a)
	You
have agreed with the Company that the restrictions in the above Clauses are no greater than is reasonable and necessary for the protection of the interest of the Company and
associated companies in its or their property and assets but should any restriction be held void but would be valid if deleted in part or reduced in application, such restriction shall apply with such
deletion or modification as may be necessary to make it valid and enforceable.

	(b)
	This
document supersedes and is in substitution for any subsisting agreements between the Company and you relating to your employment. All such subsisting agreements are terminated by
mutual consent with effect from the date of commencement of your employment.

	(c)
	There
are no collective Agreements which directly affect your terms and conditions of employment.

	(d)
	This
contract of employment the includes the particulars of employment required by the Employment Rights Act 1996.

	(e)
	The
Company reserves the right to make reasonable changes to your terms of employment on prior notice, where it considers these changes are necessary to comply with changes in the law
or where they are in the Company's commercial interests.

	(f)
	This
agreement is governed by English law and subject to the non-exclusive jurisdiction of the English Courts. 

	 
	 

	

SIGNED:	

	for	AUTONOMY SYSTEMS LIMITED.
	

SIGNED:	

	

DATE:	

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Exhibit 4.24

Autonomy Systems Ltd Staff in Confidence

Terms and conditions of employment

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