Document:

INDEMNIFICATION AGREEMENT

          This
Agreement, made and entered into this February 8, 2006 (“Agreement”), by and
between XLNT Veterinary Care Inc., a Delaware corporation (“Company”), and
__________ (“Indemnitee”): 

          WHEREAS,
to serve companies as directors or as officers or in other capacities, highly
competent persons require adequate indemnification against risks of claims and
actions against them rising out of their service to, and activities on behalf
of, such companies; 

          WHEREAS,
it is reasonable, prudent and necessary for the Company to obligate itself to
indemnify, and to advance expenses on behalf of, its officers and directors to
the fullest extent permitted by applicable law so that they will serve or
continue to serve the Company free from concern that they will not be so
indemnified; and 

          WHEREAS,
Indemnitee is willing to serve, continue to serve or to take on additional
service for or on behalf of the Company on the condition that he be so
indemnified; 

          NOW,
THEREFORE, in consideration of the promises and the covenants contained herein,
the Company and Indemnitee do hereby covenant and agree as follows: 

          Section
1. Services to the Company. Indemnitee will serve or continue to serve
as a director or officer of the Company for so long as Indemnitee is duly
elected or appointed or until Indemnitee tenders his resignation. 

          Section
2. Indemnity in Third-Party Proceedings. The Company shall indemnify
Indemnitee in accordance with the provisions of this Section 2 if Indemnitee
was, is, or is threatened to be made, a party to or a participant in any
Proceeding, other than a Proceeding by or in the right of the Company to
procure a judgment in its favor. Pursuant to this Section 2, Indemnitee shall
be indemnified against all Expenses, judgments, fines and amounts paid in
settlement actually and reasonably incurred by Indemnitee or on his behalf in
connection with such Proceeding or any claim, issue or matter therein, if
Indemnitee acted in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of the Company and, in the case of a
criminal Proceeding, had no reasonable cause to believe that his conduct was
unlawful. 

          Section
3. Indemnity in Proceedings by or in the Right of the Company. The
Company shall indemnify Indemnitee in accordance with the provisions of this
Section 3 if Indemnitee was, is, or is threatened to be made, a party to or a
participant in any Proceeding by or in the right of the Company to procure a
judgment in its favor. Pursuant to this Section 3, Indemnitee shall be
indemnified against all Expenses actually and reasonably incurred by him or on
his behalf in connection with such Proceeding or any claim, issue or matter
therein, if the Indemnitee acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Company. No
indemnification for Expenses shall be made under this Section 3 in respect of
any claim, issue or matter as to which Indemnitee shall have been finally
adjudged by a court to be liable to the Company, unless and only to the extent
that the Delaware Court of Chancery, or any court in which the Proceeding was
brought, shall determine upon 

application
that, despite the adjudication of liability but in view of all circumstances of
the case, Indemnitee is fairly and reasonably entitled to indemnification. 

          Section
4. Indemnification for Expenses of a Party Who is Wholly or Partly
Successful. Notwithstanding any other provisions of this Agreement, to the
extent that Indemnitee is a party to or a participant in and is successful, on
the merits or otherwise, in any Proceeding or in defense of any claim, issue or
matter therein, in whole or in part, the Company shall indemnify Indemnitee
against all Expenses actually and reasonably incurred by him or on his behalf
in connection therewith. If Indemnitee is not wholly successful in such
Proceeding but is successful, on the merits or otherwise, as to one or more but
less than all claims, issues or matters in such Proceeding, the Company shall
indemnify Indemnitee against all Expenses actually and reasonably incurred by
him or on his behalf in connection with each successfully resolved claim, issue
or matter. If the Indemnitee is not wholly successful in such Proceeding, the
Company shall indemnify the Indemnitee against all Expenses reasonably incurred
in connection with any claim, issue or matter that is related to any claim,
issue or matter on which the Indemnitee was successful; provided, that an
express determination adverse to the Indemnitee was not rendered with respect
to such related claim, issue or matter. For purposes of this Section 4 and
without limitation, the termination of any claim, issue or matter in such a
Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter. 

          Section
5. Indemnification for Expenses of a Witness. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is, in his position
as Company Agent, a witness in any Proceeding to which Indemnitee is not a
party, Indemnitee shall be indemnified against all Expenses actually incurred
by Indemnitee or on his behalf in connection therewith. 

          Section
6. Additional Indemnification. 

                    (a)
Notwithstanding any limitation in Sections 2, 3, or 4, the Company shall
indemnify the Indemnitee to the fullest extent permitted by law if Indemnitee
is, or is threatened to be made, a party to any Proceeding against all
Expenses, judgments, fines and amounts paid in settlement actually and
reasonably incurred by Indemnitee in connection with the Proceeding. No
indemnity shall be made under this Section 6(a) on account of the Indemnitee’s
conduct which has been adjudicated to constitute a breach of the Indemnitee’s
duty of loyalty to the Company or its shareholders or an act or omission not in
good faith or which involves intentional misconduct or a knowing violation of
the law. 

                    (b)
For purposes of Section 6(a), the meaning of the phrase “to the fullest extent
permitted by law” shall include, but not be limited to: 

	
 

	
 

	
 

	
          (i)
  to the fullest extent permitted by the provision of the DGCL that authorizes
  or contemplates additional indemnification by agreement, or the corresponding
  provision of any amendment to or replacement of the DGCL; and 

	
 

	
 

	
 

	
          (ii)
  to the fullest extent authorized or permitted by any amendments to, changes
  in, or replacements of the DGCL adopted or effected after the date of this
  Agreement, whether as a result of a change in statute, rule or regulation or
  judicial 

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decision,
  that increase the extent to which a corporation may indemnify its officers
  and directors. 

          Section
7. Exclusions. Notwithstanding any provision in this Agreement, the
Company shall not be obligated under this Agreement to make any indemnity in
connection with any claim made against Indemnitee: 

                    (a)
for which payment has actually been received by or on behalf of Indemnitee
under any insurance policy or other indemnity provision, except with respect to
any excess beyond the amount actually received under any insurance policy or
other indemnity provision; 

                    (b)
for an accounting of profits made from the purchase and sale (or sale and
purchase) by Indemnitee of securities of the Company within the meaning of
Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions
of state statutory or common law; or 

                    (c)
in connection with any Proceeding (or part of any Proceeding) initiated or
brought voluntarily by Indemnitee, including any Proceeding (or any part of any
Proceeding) initiated by Indemnitee against the Company or its directors,
officers, employees or other indemnitees, unless (i) the Board of Directors of
the Company authorized the Proceeding (or any part of any Proceeding) prior to
its initiation or (ii) the Company agrees to provide indemnification under this
Agreement, in its sole discretion, pursuant to the powers vested in the Company
under applicable law. 

          Section
8. Advancement of Expenses. 

                    (a)
Notwithstanding any provision of this Agreement to the contrary, the Company
shall advance all reasonable Expenses incurred by or on behalf of Indemnitee in
connection with any Proceeding within thirty (30) days after the receipt by the
Company of a statement or statements requesting such advances from time to
time, whether prior to or after final disposition of any Proceeding. Such
statement or statements shall reasonably evidence the Expenses incurred or to
be incurred by Indemnitee and shall include or be preceded or accompanied by an
undertaking by or on behalf of Indemnitee to repay any Expenses advanced to the
extent it shall ultimately be determined that Indemnitee is not entitled to be
indemnified against such Expenses. 

                    (b)
Notwithstanding the foregoing, the obligation of the Company to advance
Expenses pursuant to Section 8(a) shall be subject to the condition that, if,
when and to the extent that the Company determines that Indemnitee would not be
permitted to be indemnified under applicable law, the Company shall be entitled
to be reimbursed, within thirty (30) days of such determination, by Indemnitee
(who hereby agrees to reimburse the Company) for all such amounts theretofore
paid; provided, however, that if Indemnitee has commenced or thereafter
commences legal proceedings in a court of competent jurisdiction to secure a
determination that Indemnitee should be indemnified under applicable law, any
determination made by the Company that Indemnitee would not be permitted to be
indemnified under applicable law shall not be binding and Indemnitee shall not
be required to reimburse the Company for any advance 

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of Expenses
until a final judicial determination is made with respect thereto (as to which
all rights of appeal therefrom have been exhausted or lapsed). 

                    (c)
The Company will be entitled to participate in the Proceeding at its own
expense. 

          Section
9. Procedure for Determination of Entitlement to Indemnification. 

                    (a)
To obtain indemnification under this Agreement, Indemnitee shall submit to the
Company in accordance with Section 23 a written request not later than thirty
(30) days after receipt by Indemnitee of notice of the commencement of any
Proceeding. The request shall include therein or therewith such documentation
and information as is reasonably available to Indemnitee and is reasonably
necessary whether and to what extent Indemnitee is entitled to indemnification.
The Indemnitee’s failure to make a written request will relieve the Company of
its indemnification obligations under this Agreement only to the extent the
Company can establish that such failure to make a written request resulted in
actual prejudice to it, and the failure to make a written request will not
relieve the Company from any liability which it may have to indemnify the
Indemnitee otherwise than under this Agreement. The Company shall, promptly
upon receipt of such a request for indemnification, advise the Board in writing
that Indemnitee has requested indemnification. Upon submission of the written
request for indemnification by the Indemnitee pursuant to this Section 9(a),
the Indemnitee’s entitlement to indemnification shall be determined according
to Sections 9(b)-(d) of this Agreement. 

                    (b)
Upon written request by Indemnitee for indemnification pursuant to Section 9(a)
hereof (or at such time as such a request should have been made pursuant to
Section 9(a) hereof), a determination with respect thereto shall be made in the
specific case: 

	
 

	
 

	
 

	
          (i)
  if a Change in Control shall have occurred, by Independent Counsel (unless
  Indemnitee shall request that such determination be made by the Board of
  Directors or the stockholders, in which case the determination shall be made
  in the manner provided below in clauses (ii) or (iii)) in a written opinion
  to the Board of Directors, a copy of which shall be delivered to Indemnitee; 

	
 

	
 

	
 

	
          (ii)
  if a Change of Control shall not have occurred, (A) by a majority vote of a
  quorum of the Board of Directors consisting of Disinterested Directors (as
  hereinafter defined), or (B) if a quorum of the Board of Directors consisting
  of Disinterested Directors is not obtainable or even if obtainable, such
  quorum of Disinterested Directors so directs, by Independent Counsel in a
  written opinion to the Board, a copy of which shall be delivered to
  Indemnitee or (C) if so directed by the Board, by the stockholders of the
  Company; or 

	
 

	
 

	
 

	
          (iii)
  as provided in Section 10(b) of this Agreement. If it is so determined that
  Indemnitee is entitled to indemnification, payment to Indemnitee shall be
  made within ten (10) days after such determination. The Company and the
  Indemnitee shall each cooperate with the person, persons or entity making
  such determination with respect to Indemnitee’s entitlement to indemnification,
  including providing to such person, persons or entity upon reasonable advance
  

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request any
  documentation or information which is not privileged or otherwise protected
  from disclosure and that is reasonably available to Indemnitee and reasonably
  necessary to such determination. Any costs or expenses (including attorneys’
  fees and disbursements) incurred by Indemnitee in so cooperating with the
  person, persons or entity making such determination shall be borne by the
  Company (irrespective of the determination as to Indemnitee’s entitlement to
  indemnification), and the Company hereby indemnifies and agrees to hold
  Indemnitee harmless therefrom. 

                    (c)
In the event the determination of entitlement to indemnification is to be made
by Independent Counsel pursuant to Section 9(b) hereof, the Independent Counsel
shall be selected as provided in this Section 9(c). If a Change of Control
shall not have occurred, the Independent Counsel shall be selected by the Board
of Directors, and the Company shall give written notice to Indemnitee advising
Indemnitee of the identity of the Independent Counsel so selected. If a Change
of Control shall have occurred, the Independent Counsel shall be selected by
Indemnitee (unless Indemnitee shall request that such selection be made by the
Board of Directors, in which event the preceding sentence shall apply), and
Indemnitee shall give written notice to the Company advising it of the identity
of the Independent Counsel so selected. In either event, Indemnitee or the
Company, as the case may be, may, within seven (7) days after such written
notice of selection shall have been given, deliver to the Company or to
Indemnitee, as the case may be, a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that
the Independent Counsel so selected does not meet the requirements of
“Independent Counsel” as defined in Section 18(n) of this Agreement, and the
objection shall set forth with particularity the factual basis of such
assertion. If such written objection is so made, the Independent Counsel so
selected may not serve as Independent Counsel unless and until such objection
is withdrawn or a court has determined that such objection is without merit. If,
within 20 days after submission by Indemnitee of a written request for
indemnification pursuant to Section 9(a) hereof, no Independent Counsel shall
have been selected and not objected to, either the Company or Indemnitee may
petition the Delaware Court of Chancery for resolution of any objection which
shall have been made by the Company or Indemnitee to the other’s selection of
Independent Counsel and/or for the appointment as Independent Counsel of a
person selected by the Court or by such other person as the Court shall
designate, and the person with respect to whom all objections are so resolved
or the person so appointed shall act as Independent Counsel under Section 9(b)
hereof. The Company shall pay all reasonable fees and expenses of Independent
Counsel incurred by such Independent Counsel in connection with acting pursuant
to Section 9(b) hereof, and the Company shall pay all reasonable fees and
expenses incident to the procedures of this Section 9(c), regardless of the
manner in which such Independent Counsel was selected or appointed. Upon the
due commencement of any judicial proceeding or arbitration pursuant to Section
11(a) of this Agreement, the Independent Counsel shall be discharged and
relieved of any further responsibility in such capacity (subject to the
applicable standards of professional conduct then prevailing).  

                    (d)
The Company shall not be required to obtain the consent of Indemnitee to the
settlement of any Proceeding that the Company has undertaken to defend if the
Company assumes full and sole responsibility for such settlement and the
settlement grants Indemnitee a complete and unqualified release in respect of
the potential liability. The Company shall not be 

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liable for any
amount paid by Indemnitee in settlement of any Proceeding that is not defended
by the Company, unless the Company has consented to such settlement, which
consent shall not be unreasonably withheld or delayed. 

          Section
10. Presumptions and Effect of Certain Proceedings. 

                    (a)
In making a determination with respect to entitlement to indemnification, the
person or persons or entity making such determination shall presume that Indemnitee
is entitled to indemnification under this Agreement if Indemnitee has submitted
a request for indemnification in accordance with Section 9(a) of this
Agreement, and the Company shall have the burden of proof to overcome that
presumption in connection with the making by any person, persons or entity of
any determination contrary to that presumption. Neither the failure of the
Company (including by its directors or independent legal counsel) to have made
a determination prior to the commencement of any action pursuant to this
Agreement that indemnification is proper in the circumstances because
Indemnitee has met the applicable standard of conduct, nor an actual
determination by the Company (including by its directors or independent legal
counsel) that Indemnitee has not met such applicable standard of conduct, shall
be a defense to such an action or create a presumption that Indemnitee has not
met the applicable standard of conduct. 

                    (b)
If the person, persons or entity empowered or selected under Section 9 of this
Agreement to determine whether Indemnitee is entitled to indemnification shall
not have made a determination within sixty (60) days after receipt by the
Company of the request therefor, the requisite determination of entitlement to
indemnification shall be deemed to have been made, and Indemnitee shall be
entitled to such indemnification, absent (i) a misstatement by Indemnitee of a
material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under applicable
law; provided, however, that such 60-day period may be extended for a
reasonable time, not to exceed an additional thirty (30) days, if the person,
persons or entity making the determination with respect to entitlement to
indemnification in good faith requires such additional time for the obtaining
or evaluating of documentation and/or information relating thereto and so
notifies the Indemnitee in writing prior to the end of such 60-day period, identifying
with specificity the reasons for such additional time not greater than thirty
(30) days required; and provided, further, that the foregoing provisions of
this Section 10(b) shall not apply (i) if the determination of entitlement to
indemnification is to be made by the stockholders pursuant to Section 9(b) of
this Agreement and if (A) within fifteen (15) days after receipt by the Company
of the request for such determination the Board of Directors has resolved to
submit such determination to the stockholders for their consideration at an
annual meeting thereof to be held within seventy-five (75) days after such
receipt and such determination is made thereat, or (B) a special meeting of
stockholders is called within fifteen (15) days after such receipt for the
purpose of making such determination, such meeting is held for such purpose
within sixty (60) days after having been so called and such determination is
made thereat, or (ii) if the determination of entitlement to indemnification is
made by Independent Counsel pursuant to Section 9(b) of this Agreement. 

                    (c)
The termination of any Proceeding or of any claim, issue or matter therein, by
settlement or upon a plea of nolo contendere or its equivalent, shall not
(except as otherwise expressly provided in this Agreement) of itself adversely
affect the right of Indemnitee to 

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indemnification
hereunder or create a presumption that Indemnitee did not act in good faith and
in a manner which he reasonably believed to be in or not opposed to the best
interests of the Company or, with respect to any criminal Proceeding, that
Indemnitee had reasonable cause to believe that his conduct was unlawful. 

                    (d)
Reliance as Safe Harbor. For purposes of any determination of Indemnitee’s good
faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s
action was based on the record or books of account of the Company or relevant
enterprise, including financial statements, or on information supplied to
Indemnitee by the officers of the Company or relevant enterprise in the course
of their duties, or on the advice of legal counsel for the Company or relevant
enterprise or on information or records given in reports made to the Company or
relevant enterprise by an independent certified public accountant or by an
appraiser or other expert selected by the Company or relevant enterprise. The
provisions of this Section 9(d) shall not be deemed to be exclusive or to limit
in any way the other circumstances in which the Indemnitee may be deemed to
have acted in good faith. 

                    (e)
Actions of Others. The knowledge and/or actions, or failure to act, of
any other director, partner, managing member, officer, agent or employee or
trustee of the Company or relevant enterprise shall not be imputed to
Indemnitee for purposes of determining his right to indemnification under this
Agreement, unless it is established that such actions or failures to act were
done at the direction of the Indemnitee. 

          Section
11. Remedies of Indemnitee. 

                    (a)
In the event that (i) a determination is made pursuant to Section 9 of this
Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not made timely and otherwise in
accordance with Section 8 of this Agreement, (iii) payment of indemnification
is not made pursuant to Section 4, 5, 6 or 9(b) of this Agreement within ten (I
0) days after receipt by Company of a written request therefor, (iv) payment of
indemnification pursuant to Section 2 or 3 of this Agreement is not made within
ten (10) days after a determination has been made that the Indemnitee is
entitled to indemnification, or (v) Indemnitee determines in Indemnitee’s sole
discretion that such action is appropriate or desirable, the Indemnitee may
seek, and shall be entitled to an adjudication by the Delaware Court of
Chancery, or any other court of competent jurisdiction, of Indemnitee’s
entitlement to such indemnification or advancement of Expenses. Alternatively,
Indemnitee, at Indemnitee’s option, may seek, and shall be entitled to, a
determination in arbitration to be conducted by a single arbitrator pursuant to
the Commercial Arbitration Rules of the American Arbitration Association. 

                    (b)
In the event that a determination shall have been made pursuant to Section 9(b)
of this Agreement that Indemnitee is not entitled to indemnification, any
judicial proceeding or arbitration commenced pursuant to this Section 11 shall
be conducted in all respects as a de novo trial, or arbitration, on the merits,
and Indemnitee shall not be prejudiced by reason of that adverse determination.
In any judicial proceeding or arbitration commenced pursuant to this Section
11, the Company shall have the burden of proving that Indemnitee is not
entitled to indemnification or advancement of Expenses, as the case may be.  

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                    (c)
If a determination shall have been made pursuant to Section 9 of this Agreement
that Indemnitee is entitled to indemnification, the Company shall be bound by
such determination in any judicial proceeding or arbitration commenced pursuant
to this Section 11, absent (i) a misstatement by Indemnitee of a material fact,
or an omission of a material fact necessary to make Indemnitee’s statement not
materially misleading in connection with the request for indemnification or
(ii) a prohibition of such indemnification under applicable law. 

                    (d)
If the Indemnitee, pursuant to this Section 11, seeks a judicial adjudication
of, or an award in arbitration to enforce, his rights under, or to recover
damages for breach of, this Agreement, Indemnitee shall be entitled to recover
from the Company, and shall be indemnified by the Company against, any and all
Expenses actually and reasonably incurred by him in such judicial adjudication
or arbitration, but only if he prevails therein. If Indemnitee is entitled
under a judicial adjudication or arbitration under this Section 11 to
indemnification by the Company for some or a portion of the Expenses paid with
respect to such judicial adjudication or arbitration but not, however, for the
total amount thereof, the Expenses incurred by Indemnitee in connection with
such judicial adjudication or arbitration shall be appropriately prorated. 

                    (e)
The Company shall be precluded from asserting in any judicial proceeding or
arbitration commenced pursuant to this Section 11 that the procedures and
presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court or before any such arbitrator that the Company is
bound by all the provisions of this Agreement. 

          Section
12. Non-Exclusivity; Survival of Rights; Insurance; Subrogation. 

                    (a)
The rights of indemnification and to receive advancement of Expenses of
Indemnitee as provided by this Agreement are a supplement to and in furtherance
of the Company’s Amended and Restated Certificate of Incorporation, By-laws,
any other agreement, any vote of stockholders or any resolution of directors or
otherwise, and shall not be deemed a substitute therefore, shall not diminish
or abrogate any rights of Indemnitee thereunder, and shall not be deemed
exclusive of any other rights to which Indemnitee may at any time be entitled
under applicable law, the Company’s Amended and Restated Certificate of
Incorporation, the Company’s Bylaws, any agreement, any vote of stockholders or
any resolution of directors, or otherwise. No amendment, alteration or repeal
of this Agreement or any provision hereof shall limit or restrict the right of
Indemnitee under this Agreement in respect of any action taken or omitted by
such Indemnitee prior to such amendment, alteration or repeal. No right or
remedy herein conferred is intended to be exclusive of any other right or
remedy, and every other right or remedy shall be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other right or remedy. 

                    (b)
The Company shall, from time to time, make a good faith determination as to
whether or not it is practicable for the Company to obtain and maintain a
policy or policies of insurance with reputable insurance companies providing
the directors or officers of the Company with coverage for losses from wrongful
acts, or to ensure the Company’s performance of its indemnification obligations
under this agreement and otherwise. Among other considerations, 

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the Company
will weigh the costs of obtaining such insurance coverage against the
protection afforded by such coverage. To the extent that the Company maintains
an insurance policy or policies providing liability insurance for directors,
officers, employees or agents of the Company or of any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise which
such person serves at the request of the Company, Indemnitee shall be covered
by such policy or policies in accordance with its or their terms to the maximum
extent of the coverage available for any such director, officer, employee or
agent under such policy or policies. If, at the time of the receipt of a notice
of a claim pursuant to the terms hereof, the Company has director and officer
liability insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of the Indemnitee, all amounts payable as a result of such proceeding in
accordance with the terms of such policies. 

                    (c)
The Company shall not be liable under this Agreement to make any payment in
connection with any Proceeding made against Indemnitee to the extent Indemnitee
has otherwise actually received payment (under any insurance policy, By-law or
otherwise) of the amounts otherwise indemnifiable hereunder. The Company’s
obligation to indemnify or advance Expenses hereunder to Indemnitee who is or
was serving at the request of the Company as a director, officer, employee or
agent of any other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise shall be reduced by any amount Indemnitee has
actually received as indemnification or advancement of expenses from such other
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise. 

                    (d)
In the event of any payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of
Indemnitee, who shall execute all papers required and take all action necessary
to secure such rights, including execution of such documents as are necessary
to enable the Company to bring suit or enforce such rights. 

          Section
13. Duration of Agreement. 

                    (a)
This Agreement shall continue until and terminate upon the later of: (i) 10
years after the date that Indemnitee shall have ceased to serve as a director
or officer of the Company (or as a director, partner, managing member, officer,
employee, agent or trustee of any Other Enterprise which Indemnitee served at
the request of the Company); or (ii) the final termination of any Proceeding,
including any and all appeals, then pending in respect of which Indemnitee is
granted rights of indemnification or advancement of Expenses hereunder and of
any proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement
relating thereto. 

                    (b)
This Agreement shall not be deemed an employment contract between the Company
(or any of its subsidiaries) and Indemnitee. Indemnitee specifically
acknowledges that Indemnitee’s employment with the Company (or any of its
subsidiaries), if any, is at will, and the Indemnitee may be discharged at any
time for any reason, with or without cause, except as may be otherwise provided
in any written employment contract between Indemnitee and the Company (or any
of its subsidiaries), other applicable formal severance policies duly adopted
by 

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the Board, or,
with respect to service as a director or officer of the Company, by the
Company’s Amended and Restated Certificate of Incorporation, By-laws, and the
DGCL. The foregoing notwithstanding, this Agreement shall continue in force as
provided above after Indemnitee has ceased to serve as a director or officer of
the Company. 

          Section
14. Successors and Assigns, Etc. This Agreement shall be binding upon
and inure to the benefit of (i) the Company, its successors and assigns
(including any direct or indirect successor by merger, consolidation or
operation of law or by transfer of all or substantially all of its assets) and
(ii) Indemnitee and the heirs, personal and legal representatives, executors,
administrators or assigns of Indemnitee. 

          Section
15. Severability. If any provision or provisions of this Agreement shall
be held to be invalid, illegal or unenforceable for any reason whatsoever: (a)
the validity, legality and enforceability of the remaining provisions of this
Agreement (including without limitation, each portion of any Section of this
Agreement containing any such provision held to be invalid, illegal or
unenforceable, that is not itself invalid, illegal or unenforceable) shall not
in any way be affected or impaired thereby and shall remain enforceable to the
fullest extent permitted by law; (b) such provision or provisions shall be
deemed reformed to the extent necessary to conform to applicable law and to
give the maximum effect to the intent of the parties hereto; and (c) to the fullest
extent possible, the provisions of this Agreement (including, without
limitation, each portion of any Section of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that is not itself
invalid, illegal or unenforceable) shall be construed so as to give effect to
the intent manifested thereby. 

          Section
16. Identical Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall for all purposes be deemed to be an
original but all of which together shall constitute one and the same Agreement.
Only one such counterpart signed by the party against whom enforceability is
sought needs to be produced to evidence the existence of this Agreement. 

          Section
17. Headings. The headings of the paragraphs of this Agreement are
inserted for convenience only and shall not be deemed to constitute part of
this Agreement or to affect the construction thereof. 

          Section
18. Definitions. For purposes of this Agreement: 

                    (a)
“Beneficial Owner” and “Beneficial Ownership” shall have the meaning set forth
in Rule 13d-3 promulgated under the Exchange Act. 

                    (b)
“Change in Control”. A Change of Control shall be deemed to occur upon the
earliest to occur after the date of this Agreement of any of the following
events: 

	
 

	
 

	
 

	
          (i)
  Acquisition of Stock by Third Party. Any Person becomes the Beneficial
  Owner, directly or indirectly, of a Controlling Interest, provided, however,
  that for purposes of this subsection (i), the following acquisitions shall
  not constitute a Change in Control: (A) any such acquisition by any employee
  benefit plan (or related trust) sponsored or maintained by the Company or any
  

- 10 -

	
 

	
 

	
 

	
corporation
  controlled by the Company or (B) any such acquisition by any Person pursuant
  to an Excluded Business Combination; 

	
 

	
 

	
 

	
          (ii)
  Change in Board of Directors. During any period of two (2) consecutive
  years (not including any period prior to the execution of this Agreement),
  individuals who at the beginning of such period constituted the Board and any
  new director (other than a director designated by a person who has entered
  into an agreement with the Company to effect a transaction described in
  Sections 18(c)(i), 18(c)(iii) or 18(c)(iv)) whose election by the Board or
  nomination for election by the Company’s shareholders was approved by at
  least two-thirds of the Incumbent Board, cease for any reason to constitute
  at least a majority of the members of the Board; or 

	
 

	
 

	
 

	
          (iii)
  Corporate Transactions. The effective date of a merger or
  consolidation of the Company with any other entity, other than a merger or
  consolidation which would result in the voting securities of the Company
  outstanding immediately prior to such merger or consolidation continuing to
  represent (either by remaining outstanding or by being converted into voting
  securities of the surviving entity) more than 50% of the combined voting
  power of the voting securities of the surviving entity outstanding
  immediately after such merger or consolidation and with the power to elect at
  least a majority of the board of directors or other governing body of such
  surviving entity (an “Excluded Business Combination”); 

	
 

	
 

	
 

	
          (iv)
  Liquidation. The approval by the shareholders of the Company of a
  complete liquidation of the Company or an agreement, or a series of
  agreements, for the sale or disposition by the Company of all or
  substantially all of the Company’s assets; and 

	
 

	
 

	
 

	
          (v)
  Other Events. There occurs any other event of a nature that would be
  required to be reported in response to Item 6(e) of the Schedule 14A of
  Regulation 14A (or a response to any similar item on any similar schedule or
  form) promulgated under the Exchange Act, whether or not the Company is then
  subject to such reporting requirement. 

                    (c)
“Company” shall have the meaning set forth in the Preamble to this Agreement. 

                    (d)
“Company Agent” means serving as a director, trustee, general partner, partner,
managing member, officer, employee, agent or fiduciary of the Company, any
Subsidiary or, at the request of the Company, any Other Enterprise. 

                    (e)
“Controlling Interest” means securities of the Company representing twenty
percent (20%) or more of the combined voting power of the Company’s then
outstanding securities. 

                    (f)
“DGCL” means the Delaware General Corporation Law, as in effect from time to
time. 

- 11 -

                    (g)
“Delaware Court” means the Chancery Court of the State of Delaware. 

                    (h)
“Disinterested Director” means a director of the Company who is not and was
not, and has not been threatened to become, a party to or a participant in the
Proceeding in respect of which indemnification is sought by Indemnitee. 

                    (i)
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

                    (j)
“Excluded Business Combination” has the meaning as set forth in Section 18(b)(iii).

                    (k)
“Expenses” shall include all reasonable attorneys’ fees, retainers, court
costs, transcript costs, fees of experts, witness fees, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage, delivery
service fees, and all other disbursements or expenses of the types customarily
incurred in connection with prosecuting, defending, preparing to prosecute or
defend, investigating, being or preparing to be a witness, in, or otherwise
participating in, a Proceeding. Expenses also shall include Expenses incurred
in connection with any appeal resulting from any Proceeding, including without
limitation the premium, security for, and other cost relating to any cost bond,
supersedeas bond, or other appeal bond or its equivalent. Expenses, however,
shall not include amounts paid in settlement by Indemnitee or the amount of
judgments or fines against Indemnitee. 

                    (l)
“Incumbent Board” means, at any given time during any specified period, the directors
then still in office who either were directors at the beginning of the period
or whose election or nomination for election was previously approved by at
least two-thirds of the directors who were directors at the beginning of the
period. 

                    (m)
“Indemnitee” shall have the meaning set forth in the Preamble to this
Agreement. 

                    (n)
“Independent Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, nor in the
past five years has been, retained to represent: (i) the Company or Indemnitee
in any matter material to either such party (other than with respect to matters
concerning the rights of Indemnitee under this Agreement, or of other indemnitees
under similar indemnification agreements) or (ii) any other person who is, was
or is threatened to be involved as a party to or a participant in the
Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “Independent Counsel” shall not include
any person who, under the applicable standards of professional conduct then
prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this
Agreement. 

                    (o)
“Other Enterprise” means any corporation (other than the Company or any
Subsidiary), partnership, joint venture association, employee benefit plan,
trust or other enterprise or organization for which Indemnitee acts as a
Company Agent at the request of the Company or any Subsidiary. Indemnitee shall
be deemed to be acting as a Company Agent of an Other Enterprise at the request
of the Company with respect to any Other Enterprise in which the Company or any
Subsidiary has an investment as to which Indemnitee shall act as a Company
Agent from time to time. Indemnitee shall be deemed to be acting as a Company
Agent of an 

- 12 -

Other
Enterprise at the request of the Company, if Indemnitee acts as a Company Agent
of an Other Enterprise at the written or oral request of the Company or of any
Subsidiary by which the Indemnitee is employed from time to time or if
Indemnitee acts as a Company Agent of an Other Enterprise by reason of being
requested, elected, hired or retained to succeed or assume the responsibilities
of a Person who previously acted as a Company Agent of an Other Enterprise at
the request of the Company. 

                    (p)
“Person” means a natural person, company, government, political subdivision,
agency, or instrumentality of a government, partnership, limited partnership,
syndicate, or other group, but does not include a foreign central bank. 

                    (q)
“Proceeding” includes any threatened, pending or completed action, suit,
arbitration, alternate dispute resolution mechanism, investigation, inquiry,
administrative hearing or other proceeding, including any and all appeals,
whether brought by or in the right of the Corporation or otherwise and whether
of a civil, criminal, administrative or investigative nature, to or in which
Indemnitee was, is, or is threatened to be made, a party or a participant, by
reason of the fact that Indemnitee is or was a Company Agent, by reason of any
action taken by Indemnitee or of any inaction on his part while acting as a
Company Agent, or by reason of the fact that he is or was serving as a Company
Agent; in each case whether or not acting or serving in any such capacity at
the time any liability or expense is incurred for which indemnification or
advancement of expenses can be provided under this Agreement; except one
initiated by an Indemnitee pursuant to Section 10 of this Agreement to enforce
his right under this Agreement. 

                    (r)
“Subsidiary” means any corporation, limited partnership, limited liability
company or other entity of which more than 50% of the outstanding capital stock
or other equity interests of such entity having ordinary voting power to elect
a majority of the board of directors (or equivalent governing body) of such
entity is now or hereafter owned, directly or indirectly by the Company. 

          Section
19. Enforcement. 

                    (a)
The Company expressly confirms and agrees that it has entered into this
Agreement and assumed the obligations imposed on it hereby in order to induce
Indemnitee to serve or continue to serve as a director and/or officer of the
Company, and the Company acknowledges that Indemnitee is relying upon this
Agreement in serving or continuing to serve as a director and/or officer of the
Company. 

                    (b)
This Agreement constitutes the entire agreement between the parties hereto with
respect to the subject matter hereof and supersedes all prior agreements and
understandings, oral, written and implied, between the parties hereto with
respect to the subject matter hereof. 

          Section
20. Modification and Waiver. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by both of the
parties hereto. No waiver of any of the provisions of this Agreement shall be
deemed or shall constitute a waiver of any other provisions hereof (whether or
not similar) nor shall such waiver constitute a continuing waiver. 

- 13 -

          Section
21. Effectiveness of Agreement. This Agreement shall be effective as of
the date set forth on the first page and shall apply to all acts or omissions
of Indemnitee which occurred prior to such date if Indemnitee was an officer,
director, employee or other agent of the Company, or was serving as a Company
Agent, at the time such act or omission occurred. 

          Section
22. Notice by Indemnitee. Indemnitee agrees promptly to notify the
Company in writing upon being served with any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding
or matter which may be subject to indemnification or advancement of Expenses
covered hereunder. The failure of Indemnitee to so notify the Company shall not
relieve the Company of any obligation which it may have to the Indemnitee under
this Agreement or otherwise except to the extent the Company is actually
prejudiced by any such failure or delay. 

          Section
23. Notices. All notices, requests, demands or other communications
hereunder shall be in writing and shall be deemed to have been duly given if
(i) delivered by hand and receipted for by the party to whom said notice or
other communication shall have been direct, or (ii) mailed by certified or
registered mail with postage prepaid, on the third business day after the date
on which it is so mailed to the recipient at the address set forth on the
signature page hereto or to such other address as may have been furnished to
Indemnitee by the Company or to the Company by Indemnitee, as the case may be. 

          Section
24. Contribution. To the fullest extent permissible under applicable
law, if the indemnification provided for in this Agreement is unavailable to
Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying
Indemnitee, shall contribute to the amount incurred by Indemnitee for which
Indemnitee would otherwise be indemnified pursuant to this Agreement, whether
for judgments, fines, penalties, excise taxes, amounts paid or to be paid in
settlement, interest, assessments and other charges paid or payable in
connection therewith, any federal, state, local or foreign taxes imposed (net
of the value to Indemnitee of any tax benefits resulting from tax deductions or
otherwise) as a result of the actual or deemed receipt of any payments under
this Agreement and/or for Expenses, in connection with any Proceeding, in such
proportion as is deemed fair and reasonable in light of all of the
circumstances of such Proceeding in order to reflect (i) the relative benefits
received by the Company and Indemnitee as a result of the event(s) and/or
transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault
of the Company (and its directors, officers, employees and agents) and
Indemnitee in connection with such event(s) and/or transaction(s). 

          Section
25. Governing Law; Submission to Jurisdiction: Appointment of Agent for
Service of Process. This Agreement and the legal relations among the
parties shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware, without regard to its conflict of laws
rules. Except with respect to any arbitration commenced by Indemnitee pursuant
to Section 11(a) of this Agreement, the Company and Indemnitee hereby
irrevocably and unconditionally (i) agree that any action or proceeding arising
out of or in connection with this Agreement shall be brought only in the
Delaware Court, and not in any other state or federal court in the United
States of America or any court in any other country, (ii) consent to submit to
the exclusive jurisdiction of the Delaware Court for purposes of any action or
proceeding arising out of or in connection with this Agreement, (iii) to the
extent such party is not a resident of the State of Delaware, irrevocably name
National Registered Agents, Inc. or its 

- 14 -

successors and
assigns as its agent in the State of Delaware for acceptance of legal process
in connection with any such action or proceeding against such party with the
same legal force and validity as if served upon such party personally within
the State of Delaware, (iv) waive any objection to the laying of venue of any
such action or proceeding in the Delaware Court, and (v) waive, and agree not
to plead or to make, any claim that any such action or proceeding brought in
the Delaware Court has been brought in an improper or otherwise inconvenient
forum. 

          Section
26. Miscellaneous. Use of the masculine pronoun shall be deemed to
include usage of the feminine pronoun where appropriate. The headings of the
paragraphs of this Agreement are inserted for convenience only and shall not be
deemed to constitute part of this Agreement or to affect the construction
thereof. 

[Remainder of Page Intentionally Blank]

- 15 -

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and
year first above written. 

	
 

	
 

	
 

	
 

	
XLNT
  VETERINARY CARE, INC.

	
 

	
 

	
 

	
By:

	
 

	
 

	 

	
 

	
Robert
  Wallace, Chief Executive Officer

	
 

	
 

	
 

	
15466 Los
  Gatos Blvd. #109-352

	
 

	
Los Gatos,
  California 95032

	
 

	
Tel. # (408)
  356-9576

	
 

	
Fax #
  (408)356-7417

	
 

	
 

	
 

	
INDEMNITEE

	
 

	
 

	
 

	 

	
 

	
Name:

	
 

	
Address:

	
 

	
Telephone:

	
 

	
Fax:XLNT Veterinary Care, Inc.

2004 STOCK OPTION PLAN

          1.
Purpose. This XLNT Veterinary Care, Inc.
2004 Stock Option Plan (the “Plan”)
is established to create additional incentives for certain valued employees, directors, consultants and advisors of XLNT
Veterinary Care, Inc. (the “Company”) and to promote the financial success and progress of the Company. It is
intended that (i) options which qualify as incentive stock options (“Incentive
Options”) under Section 422 of the Internal Revenue Code of 1986 as amended or
superseded, and (ii) options which are nonincentive stock options
(“Nonincentive Options”) may be granted under this Plan.

          2.
Effective Date and Term of the Plan.

                    a.
This Plan shall become effective on the date of its adoption by the Board of
Directors of the Company (the “Board”), provided the Plan is approved by the
shareholders of the Company within twelve months before or after that date. If
the Plan is not so approved by the shareholders of the Company, all options
granted under this Plan shall be rescinded
and shall be void.

                    b. This
Plan shall terminate upon the earlier of (i) ten (10) years from the date the
Plan is adopted by the Board or approved by the shareholders, whichever is
earlier, or (ii) the date on which all shares available for issuance under this
Plan shall have been issued pursuant to the exercise of options granted
hereunder, or (iii) by action of the Board pursuant to Section 16 hereof. All
options outstanding on the date of termination of this Plan shall
continue in force and effect in accordance with the provisions of the
agreements evidencing such options, and shall continue to include by reference
all of the relevant provisions of this Plan notwithstanding such termination.

          3.
Certain Definitions. Unless the context otherwise requires, the
following defined terms (and all other capitalized terms
defined in this Plan) shall govern the construction
of this Plan, and any stock option agreements entered into pursuant to this Plan:

                    a.
“Code” means the Internal Revenue Code of 1986 as amended or superseded.

                    b. “Common stock” shall mean
the voting Common Stock of the Company, $ 0.001 par value.

                    c.
“Corporate Group” means the Company and any
successor thereof, any and all parent corporations of the Company, and
any and all subsidiary corporations of the Company as of the relevant date of
determination. For these purposes “parent

1

corporation”
and “subsidiary corporation” shall be as defined in Sections 424(c) and 424(f) of the Code.

                    d.
“Permanent and total disability” shall have the
same meaning as defined in Section 22(e)(3) of the Code.

                    e.
Except as otherwise expressly provided herein,
“fair market value” means:

	
 

	
 

	
 

	
                    (i)
 If the common stock of the Company is not then traded on a Public Market
 (as hereinafter defined), then the “fair market value” of the shares of such common stock of the Company shall be as
 determined by the Board in good faith based upon the then current
 value of the stock in terms of present earnings
 and future prospects of the Company as of the relevant date, or pursuant to
 such other or additional standards as required by applicable law; or

	
 

	
 

	
 

	
                    (ii)
 If the common stock of the Company is then traded on a Public Market (as
 hereinafter defined), then the “fair market value” of the shares of such
 common stock of the Company shall be the closing price of such stock on the
 principal exchange or securities market on which such stock is then listed or
 admitted to trading, on the date immediately prior to the relevant date. If
 there are no reported sales of such stock of the Company on such principal
 exchange or securities market on said date, then the closing price on such exchange or market on the next preceding day for
 which quotations do exist shall be
 determinative of fair market value.

                    f.
“For cause” means (i) conviction of a crime involving moral turpitude or any felony; (ii) failure to perform or
material neglect or incompetence in the performance of the regular duties of
the Optionee as an employee or consultant or advisor of the Company or other
member of the Corporate Group; (iii) participation in any fraud or other
material act of malfeasance related to the business of the Company or other
member of the Corporate Group; or (iv) the imparting, disclosure or use of any confidential
information in material violation of any then applicable employment or
engagement agreement or nondisclosure agreement to which the Company or other member of the Corporate Group is a party; except
as otherwise provided by the terms of the relevant Option Agreement. Nothing in
this Plan is intended to change the nature of the at-will employment or at-will
engagement of an Optionee with the Company or other member of the Corporate Group.

                    g.
“Option” collectively means an Incentive Option or a Nonincentive Option granted to an Optionee hereunder pursuant
to an Option Agreement.

                    h.
“Option Agreement” means the written agreement between the Company and an
Optionee granting an Option hereunder.

2

                    i.
“Option Price” with respect to any particular Option means the exercise price at which the Optionee may acquire
each share of the Option Shares under such Option.

                    j.
“Option Shares” mean the shares of the common stock of the Company issued or issuable by the Company pursuant
to the exercise of an Option granted hereunder;
all stock or securities received in replacement of the Option Shares in
connection with a recapitalization, reorganization, merger or other transaction
subject to Section 5(b) hereof; all stock or other securities received as stock
dividends or as a result of any stock
splits; and all new, substituted or additional stock or other securities to
which an Optionee may be entitled by reason of the exercise of an Option
or the ownership of the Option Shares.

                    k.
“Optionee” means the eligible person to whom an Option is granted hereunder,
and any permissible transferee thereof pursuant to Section 6(e) of this Plan.
Any permissible transferee shall be bound by
all of the terms and
conditions and obligations of this Plan and
the relevant Option Agreement.

                    l.
“Public Market” means a market where me common stock of the Company (i) is listed on a national securities
exchange (as that term is used in the Securities Exchange Act of 1934)
or (ii) is traded on the over-the-counter market and prices are published daily
on business days in a recognized national financial journal.

                    m.
“Ten Percent Shareholder” means a person who owns, either directly or
indirectly by virtue of the ownership attribution provisions set forth in
Section 424(d) of the Code, at the time such person is granted an Option, stock
possessing more than ten percent (10%) of the total combined voting power or
value of all classes of stock of the Company or of its parent or subsidiary
corporation or corporations.

          4. Eligibility.
The persons who shall be eligible to be granted Options pursuant to this Plan shall be the employees,
officers, directors, consultants and/or advisors of the Company or any
parent or subsidiary corporation of the Company, as the Board shall select from time to time in its sole discretion.

          5. Shares Subject to
Plan.

                    a.
The stock issuable under this Plan shall be shares of the authorized but unissued or reacquired common stock of the
Company. The aggregate number of shares of common stock which may be issued
under this Plan shall be Three-Hundred-Thousand (300,000)
shares, subject to adjustment as provided in Section 5(b) hereof. In the event
that any outstanding Option for any reason expires or is terminated or
cancelled in whole or in part, the Option Shares allocable to any unexercised
portion of such Option shall be available for subsequent grants hereunder.

3

                    
b. In the event the Company shall change the outstanding shares of its common
stock into a different number or class of shares by means of any merger, consolidation, recapitalization, reorganization,
reclassification, stock split, reverse stock split, stock dividend, combination, exchange, or other comparable
change in the corporate structure of the Company effected without
receipt of consideration, then the Board shall make appropriate adjustments to
the number and/or class of Option Shares and the Option Price per share of the
stock subject to each outstanding and unexercised Option and with regard to the maximum number and/or class of
shares of common stock of the Company issuable under this Plan, in order
to prevent the dilution of benefits provided under such Options and this Plan.
For these purposes (i) changes occurring on account of the issuance of shares
of stock by the Company at any time upon the exercise of any stock options, rights or warrants or upon the
conversion of any convertible securities or debt or other issuance of
stock by the Company in a private or public offering for consideration shall not require any adjustment in the number or
class of shares or the Option Price, and (ii) in the case of Incentive
Options, any and all adjustments provided for hereunder shall fully comply with
Sections 422 and 424 of the Code.

                    
c. Neither the grant of an Option nor any other provision hereof shall in any way affect the right of the Company to
adjust, reclassify, restructure, reorganize or otherwise change its capital or
business structure or to merge, consolidate, dissolve, liquidate or sell or
transfer or otherwise dispose of all or any part of its stock, business or assets at any time.

          6. Grant of Options; Option Agreements. Each Option granted pursuant to this
Plan shall be authorized by the action of the Board and shall be evidenced by
an Option Agreement between the Company and
the person to whom such Option is granted, in the form and substance satisfactory
to the Board from time to time and consistent with and pursuant to this Plan. Without limiting the foregoing, each Option
Agreement shall be deemed to include
and incorporate by reference each and all of the following terms and
conditions:

                    a.
Grant Date. The date stated in the Option Agreement as the grant
date of the Option shall be the “Grant Date”
of the Option for all purposes hereof. Notwithstanding the foregoing, an
Option shall not be effective and legally enforceable hereunder until the completed execution and delivery of the written
Option Agreement by the Optionee and a duly authorized officer of the
Company.

                    b.
Term of Option. The Board shall have the power to set the time
or times within which each Option shall be exercisable or the event or
events upon the occurrence of which all or
a portion of each Option shall be exercisable and the term of each
Option; provided however that no Option shall be exercisable after the
expiration of ten (10) years from the date
such Option is granted; or in the case of a Ten Percent Shareholder, after the
expiration of five (5) years from the date such Option is granted.

4

                    c.
Right to Exercise; Vesting.
The right to exercise an Option shall vest at
the rate of at least twenty percent (20%) per year over five (5) years from
the Grant Date of the Option in all events, subject to reasonable
conditions such as the continued employment or engagement of the Optionee and
specifically subject to Section 6(h) of this Plan. Except as otherwise expressly provided in the relevant Option
Agreement and subject to the expiration or
earlier termination of the Option, the vesting period of the Option shall be
for a period of four (4) years as follows:

	
 

	
 

	
 

	
                    (i)
  The Optionee shall have no right to exercise any part of the Option at any time
  prior to the expiration of the one (1) year from the Grant Date of the Option;

	
 

	
 

	
 

	
                    (ii)
  The Option shall become exercisable with respect to Twenty-Five Percent (25%) of
  the Option Shares upon the expiration of one (1) year from the Grant Date of
  the Option; and

	
 

	
 

	
 

	
                    (iii)
The Option thereafter shall become exercisable with respect to an additional Two and
Eight Point Thirty Three Hundredths Percent (2.0833%) of the Option Shares for
each month following the expiration of one (1) year from the Grant Date of
the Option.

Exercisable
installments may be exercised by the Optionee in whole or in part and to the extent not exercised
shall accumulate and be exercisable as provided. The Company shall not be required to
issue fractional shares at any time; and any fractional shares remaining in an Option following
any exercise thereof shall be rounded down to the next nearest whole number of Shares.

                    d.
Option Price. The Option Price for each Option shall be as determined in the sole discretion of the Board from time to
time; provided however that:

	
 

	
 

	
 

	
                    (i)
  The Option Price for Incentive Options shall be not less than 100 percent of
  the fair market value of the Option Shares on the Grant Date of the Option; except that
  the Option Price for Incentive Options of a Ten Percent Shareholder shall not
  be less than 110 percent of the fair market value of the Option Shares on the
  Grant Date of the Option.

	
 

	
 

	
 

	
                    (ii)
  The Option Price for Nonincentive Options shall be not less than 85 percent
  of the fair market value of the Option Shares on the Grant Date of the Option; except that the Option Price
  for Nonincentive Options of a Ten Percent
  Shareholder shall not be less than 110 percent of the fair market value of the
  Option Shares on the Grant Date of the Option.

5

                    e.
Non-Transferability. No Option shall be transferable or assignable by
the Optionee other than by will or the laws of descent and distribution, and an
Option may be exercised during the lifetime of the Optionee solely by the
Optionee. Subject to the foregoing, all transfers or assignments or attempted
transfers or assignments of any Option or Option Agreement shall be void ab
initio.

                    f.
Exercise of the Option. Except as otherwise provided in the relevant Option Agreement, in
order to exercise an Option with respect to all or any part of the Option Shares for which
an Option is then exercisable, Optionee (or the executor, administrator, heir or
devisee of Optionee after the death of Optionee) must do the following:

	
 

	
 

	
 

	
                    (i)
  Provide the Secretary of the Company with written notice of such exercise,
  specifying the number of Option Shares for which the Option is being exercised;

	
 

	
 

	
 

	
                    (ii)
  Pay the Option Price for the Option Shares being purchased in one or more of the
  following forms: (1) full payment in cash or check of the Option Price in United
  States Dollars for the Option Shares being purchased; (2) full payment in
  shares of common stock of the Company having a fair market value on the Exercise
  Date equal to the Option Price for the Option Shares being purchased, and held
  for such period required for purposes of Section 16(b) of the Securities
  Exchange Act of 1934 to the extent applicable; or (3) full payment by a
  combination of such shares of common stock of the Company valued at fair market value on the
  Exercise Date and cash or check payable to the order of the Company, equal in
  the aggregate to the Option Price for the Option Shares being purchased; and

	
 

	
 

	
 

	
                    (iii)
  Furnish to the Company appropriate documentation that the person or persons
  exercising the Option, if other than Optionee, have the right to exercise such Option.
  For these purposes, the “Exercise Date” of the Option shall be the date on
  which the Secretary of the Company receives written notice of the exercise of
  such Option, together with full payment of the Option Price for the Option Shares
  being purchased. In the event the Board determines in its sole discretion that the
  shares of common stock of the Company cannot be reasonably valued at fair market
  value as of the Exercise Date, then full payment of the Option Price for the
  Option Shares shall be made only in cash or check payable to the order of the
  Company. The certificate or certificates for the Option Shares shall be registered
  in the name of Optionee, or if applicable, in the name of the estate, heirs or
  devisees of Optionee.

                    g.
Tax Withholding. At the time an Option is exercised in whole or in part, or at any time thereafter as requested by
the Company, the Optionee shall authorize payroll withholding and otherwise shall agree to make adequate payments
to the Company

6

for all federal, state and
other jurisdiction tax withholding obligations of the Company or any parent or
subsidiary thereof which may arise in connection with the Option, if any,
including without limitation obligations arising upon (i) the grant of such
Option, (ii) the exercise of such Option in
whole or in part, (iii) the transfer of any Option Shares or other property or
consideration of any kind in connection with the exercise of such Option, (iv)
the operation of any law or regulations providing for the imputation of
interest or any other income or payment, or (v) the lapsing of any restriction
with respect to any Option Shares.

                    h.
Earlier Termination of Option Term. Except as otherwise provided by the terms of the relevant Option Agreement in
the case of a consultant or advisor to the Company, an Option shall terminate
prior to the expiration date of the Option as follows:

	
 

	
 

	
 

	
                    (i)
  Termination For Cause. If the Company terminates the employment of an
  Optionee for cause or terminates the engagement of an Optionee as a consultant or advisor for
  cause, then the Option shall terminate and cease to be exercisable upon the
  earlier of (1) the termination of the employment
  or engagement of the Optionee or (2) the expiration date of the Option. No
  additional right to exercise the Option with respect to any Option Shares
  shall vest from and after the date the employment or engagement of the Optionee is terminated.

	
 

	
 

	
 

	
                    (ii)
  Voluntary Termination. If the Optionee voluntarily terminates his or
  her employment or engagement with the Company, then the Option shall
  terminate and cease to be exercisable upon the earlier of (1) the expiration
  of thirty (30) days from the date the
  employment or engagement of the Optionee is terminated or (2) the expiration date of the Option. No additional
  right to exercise the Option with respect to any Option Shares shall
  vest from and after the date the
  employment or engagement of the Optionee is terminated.

	
 

	
 

	
 

	
                    (iii)
  Termination Without Cause. If the Company terminates the employment or engagement of the Optionee
  without cause (other than in the case of death or permanent and total disability), then the Option shall
  terminate and cease to be exercisable upon the earlier of (1) the
  expiration of sixty (60) days from the date the employment or engagement of
  the Optionee is terminated or (2) the
  expiration date of the Option. No additional right to exercise the Option with
  respect to any Option Shares shall vest from and after the date the employment or engagement of the Optionee is
  terminated.

	
 

	
 

	
 

	
                    (iv)
  Removal of Director For Cause. If an Optionee is removed as a director
  for cause as defined by
  applicable law, then any Option granted to the Optionee in his or her
  capacity as a director shall terminate and cease to be exercisable upon the
  earlier of (1) the termination of the directorship of the Optionee or (2) the
  expiration date of such Option. No additional right to

7

	
 

	
 

	
 

	
exercise such Option with respect to any Option
 Shares shall vest from and after the date
 the directorship of the Optionee is terminated.

	
 

	
 

	
 

	
                    (v)
 Death of Optionee. In the event of the death of the Optionee during the term of the Option, then the
 executors or administrators of the estate of the Optionee or the heirs or devisees of the Optionee (as the case
 may be) shall have the right to exercise the Option to the extent the
 Optionee was entitled to do so at the
 time of his or her death:
 provided however that the Option shall terminate and cease to be exercisable
 upon the earlier of (1) the expiration of one (1) year from the date of the death of the
 Optionee or (2) the expiration date of the Option. No additional right to
 exercise the Option with respect to any Option
 Shares shall vest from and after the date of the death of the Optionee.

	
 

	
 

	
 

	
                    
 (vi) Disability of Optionee. In the event of the permanent and total
 disability of the Optionee during the term of the Option, then the Optionee
 shall have the right to exercise the Option to the extent the Optionee was
 entitled to do so at the time of the termination of his or her employment or
 engagement or directorship with the Company by reason of such disability;
 provided however that the Option shall
 terminate and cease to be exercisable upon the earlier of (1) the expiration
 of one (1) year from the date of such termination of employment or
 engagement or directorship or (2) the expiration date of the Option. No additional right to exercise the Option with
 respect to any Option Shares shall vest from and after the date of the
 termination of the employment or engagement or
 directorship of the Optionee.

	
 

	
 

	
 

	
                    (vii)
 Employment by Corporate Group. For purposes of this Section, if
 during the term of the Option the Optionee transfers as an employee from the
 Company to another member of the Corporate Group, the employment of the
 Optionee shall not be deemed to have terminated or ceased hereunder and all references to the Company herein shall be
 deemed to include such member of the Corporate Group. For purposes hereof the
 employment of the Optionee shall be deemed to have terminated either
 upon actual termination of employment or upon the employer of Optionee ceasing
 to be a member of the Corporate Group, unless said employer or its successor
 assumes the Option pursuant to the terms hereof.

                    i.
Common Stock Voting Rights. This Plan and any relevant Option Agreement
shall be in full compliance with Section 260.140.1 of the Rules of the California Commissioner of Corporations (as
amended or superseded) regarding the voting rights of common stock.

                    j.
Other Provisions. An Option Agreement may contain such other terms, provisions and conditions,
including but not limited to provisions accelerating the right to exercise an Option, special forfeiture
conditions, other rights of repurchase and

8

restrictions on transfer of Option Shares issued
hereunder, not inconsistent with the provisions
of this Plan or applicable law, as may be determined by the Board in its sole discretion.

          7.
Repurchase Rights of Company.

                    a.
Repurchase Event. Each of the following occurrences shall be defined as
a “Repurchase Event” for purposes of this Plan and the relevant Option
Agreement:

	
 

	
 

	
 

	
                    (i)
 The termination of the Optionee as an employee or director or
 consultant or advisor of the Company at any time for any reason, with respect
 the Option Shares acquired pursuant to exercise of any Option granted to the
 Optionee in connection with such employment or directorship or engagement;

	
 

	
 

	
 

	
                    (ii)
 The death of the Optionee;

	
 

	
 

	
 

	
                    (iii)
 The marital dissolution or other division or transfer of marital property
 between the Optionee and his or her spouse, to the extent ownership of any Option Shares are transferred
 to said spouse in connection with said marital dissolution or division
 of property; or

	
 

	
 

	
 

	
                    (iv)
 The involuntary transfer of any Option Shares of the Optionee pursuant
 to a judicial order or judgment, legal process, execution, attachment or
 other non-consensual lien or seizure or transfer or division in favor of any
 person other than the Company, including without limitation a creditor of the
 Optionee, a trustee in bankruptcy, or a purchaser at a creditor or judicial sale.

The Optionee or his or her successor or representative
shall provide the Company with prompt written notice of the occurrence of any
Repurchase Event (“Notice of Event”), and also shall provide the Company with
prompt written notice in the event of the filing of a petition for bankruptcy
of the Optionee as a debtor under applicable law, or the making by the Optionee
of an assignment for the benefit of creditors of all or substantially all of
his or her assets in one or a series of
related transactions.

                    b.
Repurchase Right. Except as otherwise provided by the relevant Option
Agreement, upon the occurrence of any Repurchase Event the Company shall have the irrevocable right and option but not the
obligation (“Repurchase Right”) to purchase all or any part of the Option
Shares for the Repurchase Price as hereinafter defined, on the following terms
and conditions:

	
 

	
 

	
 

	
                    (i)
 The Company shall have a period of ninety (90) days after (1) the date of termination of the employment
 or directorship or engagement of

9

	
 

	
 

	
 

	
Optionee or (2) in the
 case of any other Repurchase Event, the date the Company receives the Notice of Event, or (3) the last date on which
 the Optionee or his or her successor or representative exercises the Option
 in whole or in part, whichever is later, to exercise the Repurchase
 Right. The Repurchase Right shall be
 exercised by the delivery of written notice by the Company to the Optionee or
 his or her successor or representative (“Repurchase Notice”), setting forth
 the number of Option Shares being repurchased and the amount of the
 Repurchase Price. The Repurchase Right shall lapse at the end of the relevant
 90-day period if not exercised by the Company. Any lapse of the Repurchase
 Right with respect to any Option Shares shall not affect any other rights of
 the Company under this Plan or the relevant Option Agreement.

	
 

	
 

	
 

	
                    (ii)
 The Repurchase Price for the Option Shares being repurchased by the
 Company shall equal the fair market value of the Option Shares being
 repurchased determined as of the date of the Repurchase Event by the written opinion of a qualified independent appraisal firm
 designated in writing by the Company; and
 the cancellation of any indebtedness of Optionee to the Company or any
 other member of the Corporate Group shall be deemed payment to the Optionee
 in cash to the extent of the unpaid principal and any accrued interest cancelled.

	
 

	
 

	
 

	
                    (iii)
 Within ten (10) days of delivery of the Repurchase Notice, the Optionee or his or her successor or
 representative shall be required to tender all of such Option Shares to the
 Company for repurchase. The Repurchase Price shall be paid in full upon the tendering of such Option Shares. The
 failure to tender the Option Shares to the Company shall be a material
 breach for which the Company shall be
 entitled to immediate legal and equitable relief. Without limiting the
 generality of the foregoing, in the event of the failure to tender such Option
 Shares (1) the Optionee or his or her successor or representative shall have
 no rights as a shareholder of the Option Shares (including without limitation any right to vote or to dividends or
 liquidation proceeds), and (2) the Company thereupon shall have the
 right to unilaterally transfer the Option Shares to the Company on the books
 of the Company and to tender and hold the amount
 of the Repurchase Price for the benefit of the Optionee. Upon execution
 of the relevant Option Agreement, each Optionee shall be deemed to
 irrevocably appoint and designate the Secretary or Assistant Secretary of the
 Company, and their respective successors in office, as his or her attorney-in-fact
 for and on his or her behalf and on
 behalf of his or her successors and representatives for such purposes.

                    c.
Termination on Public Offering. Notwithstanding any other provision of
this Section, the Repurchase Right of the Company shall terminate and
thereafter be of no force or effect upon the
initial public offering of the common stock of the Company for sale in a
Public Market.

10

                    d.
Assignment of Repurchase Right. The Company shall have the right to assign the Repurchase
Right at any time.

          8.
Right of First Refusal. In addition to any Repurchase Right of the Company, if the Optionee
receives a bona fide offer (“Offer”) from any third person or entity (“Third Party”)
to purchase all or any part of the Option Shares of said Optionee and the Optionee intends
to sell or otherwise transfer the Offered Shares to the Third Party, then the
following provisions shall be applicable:

                    a.
Notice. The Optionee shall
give prompt written notice of the Offer (“Offer Notice”) to the Company which shall set
forth all material terms of the Offer and the identity of the Third Party and
shall include a copy of a written Offer.

                    b.
Right
of First Refusal. The Company shall have the irrevocable right and option (“Right of
First Refusal”), but not the obligation, to purchase all of such Option Shares pursuant
to the terms of the Offer. Such Option shall be exercisable by the Company within thirty
(30) days from the receipt of the Offer Notice, by delivery of written notice of exercise to the Optionee.
In the event the Option is exercised by the Company,
the purchase price for such Option Shares shall be the amount specified in the
Offer and except as otherwise provided herein shall be payable on the terms and
at the times specified in the Offer. The exercise or failure to exercise by the
Company of such Right of First
Refusal shall not affect the rights of the Company with respect to any other Offer Notice. In the event the Offer Notice
provides for payment other than in cash, the Company shall have the option of paying for such Option Shares by the
discounted cash equivalent of the consideration described in the Offer Notice
as reasonably determined by the
Company.

                    c.
Sale
Period.
If the Company does not exercise its Right of First Refusal for such Option
Shares, then the Optionee shall have the right to sell or otherwise transfer such Shares to
the Third Party in accordance with all material terms of the Offer within six
(6) months after the expiration of the relevant exercise period of the Company.
Upon the expiration of such transfer period any of the Option Shares not transferred
by the Optionee to the Third Party hereunder shall again become subject to the
rights and restrictions of this
Section. The Company shall have the right to demand further assurances from the Optionee and the Third Parry,
in a form satisfactory to the Company, that the transfer of such Option Shares
was bona fide and consummated in fact on the terms and conditions set forth in the Offer Notice.

                    d.
Termination
on Public Offering. Notwithstanding any other provision of this Section, the Right of First Refusal of
the Company shall terminate and thereafter be of no force or effect upon the initial public
offering of the common stock of the Company for sale in a Public Market.

11

                    e.
Assignment of Right of First Refusal. The Company shall have the right
to assign the Right of First Refusal at any time.

          9.
Restrictions on Grant or Stock Issuance.

                    a.
The grant of Options and the issuance of Option Shares shall be conditioned
upon and subject to compliance with all of the applicable requirements of
federal and state laws with respect to such securities on the relevant dates of
determination;
and to the entering into of such covenants, representations and warranties by the Optionee as
required under applicable laws in the judgment of the Company or its counsel in
its sole discretion with respect to the grant of the Option and the issuance of
the Option Shares thereunder. Without limiting the foregoing, the Company has
no obligation to file a registration statement under the Securities Act of
1933 or under any similar act or law for the registration or qualification of any Option
or any of the Option Shares or to otherwise assist any Optionee in complying with any
exemption from registration.

                    b.
The certificate or certificates representing the Option Shares acquired by
exercise of the Option shall bear such legends as determined by the Company in
its sole and absolute discretion, including without limitation any applicable
federal or state securities law or corporate law restrictions and legends
regarding the Repurchase Right and
Right of First Refusal of the Company. In order to ensure compliance with the restrictions set forth in this Plan and the Option
Agreement, the Company also may issue appropriate
stop-transfer instructions to its transfer agent, if any, and if the Company
transfers its own securities, the Company may make appropriate notations to the
same effect in its own records.

          10.
No Rights as a Shareholder. No person shall have any rights as a shareholder with respect
to any of the Option Shares subject to an Option until the date of the issuance of a stock
certificate(s) for the Option Shares for which the Option has been exercised.
No adjustments shall be made for dividends or distributions or other rights for
which the record date is prior to the date such stock certificate(s) are
issued, except as provided in Section 5(b) of this Plan.

          11.
No Rights in Other Capacities. Nothing in this Plan or in any Option Agreement shall confer upon any Optionee any
right to continue as an employee or director
or consultant or advisor of the Company (or any other member of the Corporate
Group) or interfere in any manner with any right of the Company (or any other
member of the Corporate Group or
other relevant entity) to terminate the employment or directorship or
engagement of an Optionee at any time. No Optionee shall have any authority to act on behalf of the Company in any
capacity with respect to his or her own participation in this Plan or
with respect to his or her own Option Agreement or Option granted hereunder.

12

          12. Use of Proceeds. The proceeds received
by the Company from the payment of the Option Price pursuant to exercise of an
Option shall be used for such corporate purposes as determined by the Board in its
discretion.

          13. Lock-Up Restrictions. In connection with any
underwritten public offering of stock or other securities of the Company,
including without limitation an initial public offering by the Company of its
common stock, made by the Company pursuant to an effective registration statement filed under
applicable federal securities acts, the Optionee shall fully comply with and
cooperate with the Company and any managing underwriter in connection with any
stock “lock-up” or “standstill” agreements or similar restrictions on the offer or sale or
contract to sell or other transfer or assignment or pledge or loan or other encumbrance of
the shares of the common stock of the Company (including without limitation any
of the Option Shares) generally applicable to similarly situated shareholders
or optionholders of the Company.

          14. Mandatory Notice
of Disposition. The Optionee shall transfer or dispose of any of the Option
Shares only in compliance with the provisions of this Plan and the Option Agreement.
Without limiting the other provisions of this Plan or the Option Agreement, in the event
the Optionee disposes of any of the Option Shares within two (2) years of the Grant Date
of the Option or within one (1) year after the transfer of the Option Shares to the
Optionee in connection with an exercise of the Option, whether such disposition
is made by sale, exchange, gift or otherwise, then the Optionee shall notify
the Chief
Financial Officer of the Company of such disposition in writing within thirty
(30) days from the date of such disposition. Said written notice shall state
the date of such disposition, and the type and amount of the consideration
received for such Option Share or Option Shares by the Optionee in connection therewith.
In the event of any such disposition, the Company shall have the right to
withhold from the Optionee or to require the Optionee to immediately pay to the Company the
aggregate amount of taxes, if any, which the Company is required to withhold under federal
or state or other applicable law as a result of the granting or exercise of the subject
Option or the disposition of the subject Option Shares.

          15. Modification, Extension
and Renewal of Options. Subject to the terms and conditions and within the
limitations of this Plan, the Board may modify, extend or renew outstanding Options
granted under this Plan, or accept the surrender of outstanding Options (to the extent
not theretofore exercised) and authorize the granting of new Options in substitution therefor
(to the extent not theretofore exercised). Notwithstanding the foregoing, no
modification of any Option shall, without the consent of the Optionee, alter or
impair any rights or obligations under any Option theretofore granted under
this Plan.

          16.
Termination or Amendment
of Plan.

                    a.
The Board may at any time terminate or amend this Plan prior to the expiration
of this Plan, provided however that without the approval of the shareholders of

13

the Company there shall be: (i) no increase in the
total number of shares of stock which may be issued under this Plan (except by
operation of the provisions of Section 5(b) hereof),
and (ii) no change in the classes of persons eligible to be granted Options.

                    b.
No amendment of this Plan may adversely affect any then outstanding Option or
any unexercised portion thereof without the consent of the Optionee; provided
however that subject to Section 16(a) hereof the Board expressly reserves the
right to amend the terms and provisions of this Plan and of any outstanding
Options under this Plan to the extent necessary to qualify such Options
for such favorable federal income tax treatment
(including deferral of taxation upon exercise) as may be afforded employee
stock options under amendments to the Code or other statutes or
regulations which become effective after the effective date of this Plan.

          17.
Financial Statements. Subsequent to the Effective Date of the Plan, the
Optionees shall receive financial statements from the Company on at least an
annual basis to the extent required by the
then applicable Rules of the Commissioner of Corporations for the State of California or as otherwise
required by law.

          18.
Notices. All notices, requests, demands and other communications
required or permitted to be given pursuant to this Plan or any Option Agreement
(collectively “notices”) shall be in writing and shall be delivered (i) by
personal delivery, (ii) by nationally
recognized overnight air courier service or (iii) by deposit in the United States
Mail, postage prepaid, registered or certified mail, return receipt requested.
A notice shall be deemed to have been given
on the date delivered, if delivered personally or by overnight air courier service; or five (5)
days after mailing if mailed. All notices shall be addressed if to the Company
at its principal place of business in the State of California, United States of
America, to the attention of the Secretary or Chief Financial Officer of the
Company; and if to Optionee or his or her representative at the last address of
Optionee shown on the records of the
Company. Either party may by written notice to the other party specify a
different address to which notices shall be given, by sending notice thereof to
the other party in the foregoing manner.

          19.
Administration. This Plan shall be administered by the Board or by a
duly appointed committee of the Board
having such powers as shall be specified by the Board. Any references in this Plan to the Board shall
also be deemed to refer to such committee of the Board if appointed for
such purposes with the relevant powers. The Board may also at any time terminate the functions of such committee and reassume
all powers and authority previously delegated to the committee. The Board is
authorized to establish such rules
and regulations as it may deem appropriate for the proper administration of
this Plan and to make such determinations under, and issue such interpretations
of, this Plan and any Option
Agreement or Option granted hereunder as it may deem necessary or advisable. All questions of interpretation of this Plan or
any Option Agreement or Option granted hereunder shall be determined by the
Board and shall be final and binding upon all persons having an interest in
this Plan or any Option Agreement or Option granted

14

hereunder.
No member of the Board shall vote on any matter concerning his or her own participation in this
Plan. No member of the Board shall be liable for any action or interpretation made in
good faith hereunder.

          20.
General Provisions.

                    a.
This
Plan constitutes the entire XLNT Veterinary Care, Inc. Stock Option Plan,
subject to termination or amendment as herein provided. In the event of any
conflict between the terms or provisions of this Plan and any Option Agreement
for any Option granted hereunder, the terms and provisions of this Plan shall
control.

                    b.
This
Plan shall be construed in accordance with and governed by the laws of the State of
California without reference to the principles of conflicts of law.

                    c.
Whenever
possible, each provision of this Plan shall be interpreted in such manner as to be
effective and valid under applicable law. In the event that any provision of this Plan
shall be held by the final judgment of a court of competent jurisdiction to be
invalid or unlawful or unenforceable, then the remaining provisions of this Plan shall remain
in full force and effect and shall be construed to give the fullest effect to
the purpose of this Plan and the intended qualification of this Plan pursuant
to Section
422 of the Code and pursuant to Section 25l02(o) of the California Corporations
Code and
the respective regulations and rules thereunder (as amended or superseded).

                    d.
When the context requires, the plural shall include the singular and the singular the plural and
any gender shall include any other gender. Section headings are for
convenience only and are not part of this Plan.

          21.
Copies of Plan. A complete copy of this Plan as then in effect shall be delivered to each
Optionee at or before the time such person executes and delivers the relevant Option
Agreement.

DATE OF ADOPTION OF THIS PLAN BY THE BOARD OF DIRECTORS
OF THE

COMPANY: October 14, 2004

DATE OF APPROVAL OF THIS
PLAN BY THE SHAREHOLDERS OF THE 

COMPANY: October
14, 2004

15

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