Document:

Exhibit 10.8

Exhibit 10.8

Heska Corporation 2010 Management Incentive Plan

The following is intended to implement the Heska Corporation Management Incentive Plan Master
Document for the year beginning on January 1, 2010 and ending on December 31, 2010 (the “2010
MIP”). The Compensation Committee has agreed on the following for the 2010 MIP.

1) The Category Percentages for the 2010 MIP are as follows:

	 	 	 	 	 
	Chief Executive Officer
	 	50.0% of base pay
	President
	 	35.0% of base pay
	Chief Financial Officer
	 	35.0% of base pay
	Vice Presidents
	 	35.0% of base pay
	Directors
	 	25.0% of base pay

2) The Plan Allocation for the 2010 MIP is as follows:

75% on overall achievement of the company-wide financial objective and 25% on individual
performance

3) The Key Parameters for the 2010 MIP is as follows:

Pre-MIP Operating Income

4) The Payout Structure for the 2010 MIP is as follows:

53% of Pre-MIP Operating Income above $3,257,000, with a maximum MIP Payout of $1,500,000 (the
“Maximum MIP Payout”). Any MIP payment in excess of the Maximum MIP Payout shall be at the sole
and absolute discretion of the Compensation Committee.Exhibit 10.9

Exhibit 10.9

HESKA CORPORATION

DIRECTOR COMPENSATION POLICY

Non-employee directors of Heska Corporation, a Delaware corporation (the “Company”) shall
receive the following compensation for their service as a member of the Board of Directors (the
“Board”) of the Company:

Cash Compensation

Annual Retainer for Board Service

Effective January 1, 2010, each non-employee director shall be entitled to an annual cash
retainer in the amount of $30,000 (the “Annual Retainer”). The Company shall pay the Annual
Retainer on a quarterly basis in advance on the first day of the calendar quarter, subject to the
non-employee director’s continued service to the Company as a non-employee director on such date.

Board Committee Chair Retainer

Commencing July 1, 2009, a non-employee director who serves as the Chair of the Audit,
Compensation or Corporate Governance committee of the Board shall be entitled to an annual cash
retainer in the amount of $2,500 (the “Chair Retainer”). The Company shall pay the Chair Retainer
on a quarterly basis in advance on the first day of the calendar quarter, subject to the
non-employee director’s continued service to the Company as Chair of such committee for the
following quarter.

Board Committee Member Retainer

Commencing July 1, 2007, a non-employee director who serves as a member of the Audit,
Compensation or Corporate Governance committee shall be entitled to an annual cash retainer of
$2,500 for membership on each Board committee they serve on (the “Committee Retainer”). A
non-employee director who is also the Chair of a committee shall be entitled to the Committee
Retainer in addition to the Chair Retainer. The Company shall pay the Committee Retainer on a
quarterly basis in advance on the first day of the calendar quarter, subject to the non-employee
director’s continued service to the Company as a member of such committee for the following
quarter.

Equity Compensation

Initial Award for New Directors

For new non-employee directors appointed or elected after January 1, 2007, on the date a new
director becomes a member of the Board, each non-employee director shall automatically receive a
grant of an option valued at $37,500 to purchase shares of the Company’s common stock (an “Initial
Option”), at an exercise price equal to the fair
market value of the common stock on the date of grant, subject to such grant covering a
maximum of 50,000 shares. The Initial Option is subject to vesting over a period of four years in
equal annual installments commencing on the date of grant, subject to the non-employee director’s
continued service to the Company through the vesting dates. The Initial Option will be immediately
exercisable, but if “early exercised,” unvested shares shall remain subject to the Company’s right
of repurchase at the exercise price upon termination of service prior to the fourth anniversary of
the date of grant. An employee director who ceases to be an employee, but who remains a director,
will not receive an Initial Option.

 

 

 

Annual Award for Continuing Board Members

Commencing with the 2007 Annual Meeting of Stockholders, each continuing non-employee director
shall automatically receive an annual grant of an option valued at $37,500 to purchase shares of
the Company’s common stock (an “Annual Option”), at an exercise price equal to the fair market
value of the common stock on the date of grant which shall be the date of each Company Annual
Meeting of stockholders, subject to such grant covering a maximum of 50,000 shares. The Annual
Option for continuing Board members shall vest in full on the earlier of (i) the one year
anniversary of the date of grant and (ii) the date immediately preceding the date of the Annual
Meeting of the Company’s stockholders for the year following the year of grant for the award,
subject to the non-employee director’s continued service to the Company through the vesting date.
The Annual Option shall be immediately exercisable, but if “early exercised,” remain subject to the
Company’s right of repurchase at the exercise price upon termination of service prior to the
vesting date.

Provisions Applicable to All Non-Employee Director Equity Compensation Grants

All grants shall be subject to the terms and conditions of the Company’s 1997 Stock Incentive
Plan or 2003 Equity Incentive Plan, as applicable, and the terms of the Stock Option Agreement
issued thereunder.

For purposes of this Director Compensation Policy, the “value” for Initial Grants and Annual
Grants to non-employee directors shall be determined in accordance with the Company’s option
valuation policy in place at the time of grant for financial reporting purposes.

Any unvested shares underlying non-employee director option grants shall become fully vested
in the event of: (1) the termination of the non-employee director’s services because of death,
total and permanent disability or retirement at or after age 65; or (2) a change in control occurs
with respect to the Company while such non-employee director is a member of the Board.

 

2

 

Expense Reimbursement

All non-employee directors shall be entitled to reimbursement from the Company for their
reasonable travel (including airfare and ground transportation), lodging and meal
expenses incident to meetings of the Board or committees thereof or in connection with other
Board related business. The Company shall also reimburse directors for attendance at director
continuing education programs that are relevant to their service on the Board and which attendance
is pre-approved by the Chair of the Corporate Governance Committee and Chairman of the Board. The
Company shall make reimbursement to a non-employee director within a reasonable amount of time
following submission by the non-employee director of reasonable written substantiation for the
expenses.

Amended and Restated November 10, 2009

 

3Exhibit 10.22

Exhibit 10.22

THIRD AMENDMENT TO NET LEASE AGREEMENT 

THIS THIRD AMENDMENT TO LEASE AGREEMENT (“Third Amendment”) is made and entered into by
and between Millbrae Square Company (“Landlord”) and Heska Corporation (“Tenant”).

RECITALS

	 	1.	 	The Tenant previously entered into a Net Lease Agreement dated May 24, 2004 (“Lease”)
with the prior owner of the subject property, CCMRED 40, LLC (“CCMRED”).

	 	2.	 	Tenant and CCMRED entered into a First Amendment to Net Lease Agreement (“First
Amendment”) dated February 11, 2005 and a Second Amendment to Net Lease Agreement (“Second
Amendment”) dated July 14, 2005.

	 	3.	 	Landlord has acquired the subject property from CCMRED and, as the owner, is now the
Landlord under the Lease, as amended.

	 	4.	 	The parties desire to enter into this Third Amendment to Net Lease Agreement.

NOW, THEREFORE, for good and valuable consideration, the adequacy of which is hereby
acknowledged, the parties mutually agree as follows:

	 	1.	 	The Recitals set forth above are accurate and are incorporated into this Third
Amendment.

	 	2.	 	The parties hereby agree that the following subsection (e) be added to Section 38,
Option to Extend, in the Lease:

(e) In the event Tenant fails to exercise its initial Extension
Option, the Expiration Date shall be 12:00 midnight on December 31,
2023 and Tenant shall pay Monthly Base Rent equal to LY23 Annual
Base Rent divided by 12 for each month of the seven month period
from June 1, 2023 to December 31, 2023 (the “Stub Year”).

	 	3.	 	Except as modified by this Third Amendment, the Lease, as amended, shall remain in full
force and effect.

	 	4.	 	This document may be executed in counterparts, each of which shall constitute an
original.

 

 

 

Dated effective this 1st day of January, 2010.

	 	 	 	 	 
	TENANT:	 	 
	 
	 	 	 	 
	HESKA CORPORATION,

a Delaware Corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ Robert B. Grieve
 

ROBERT B. GRIEVE
	 	 
	 

	 	Chairman and Chief Executive Officer	 	 
	 
	 	 	 	 
	ATTEST:	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jason A. Napolitano
 

JASON A. NAPOLITANO
	 	 
	 

	 	Executive Vice President, Chief Financial Officer & Secretary	 	 
	 
	 	 	 	 
	LANDLORD:	 	 
	 
	 	 	 	 
	MILLBRAE SQUARE COMPANY,

a California Limited Partnership	 	 
	 
	 	 	 	 
	By:

	 	/s/ Modesto R. Imbimbo
 

MODESTO R. IMBIMBO
	 	 
	 

	 	General PartnerExhibit 10.29

Exhibit 10.29

[***] — Certain information in this exhibit have been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.

SEVENTH AMENDMENT TO THIRD AMENDED AND RESTATED

CREDIT AND SECURITY AGREEMENT

This Amendment, dated as of November 30, 2009, is made by and between Heska Corporation, a
Delaware corporation (“Heska”), Diamond Animal Health, Inc., an Iowa corporation (“Diamond”) (each
of Heska and Diamond may be referred to herein individually as a “Borrower” and collectively as the
“Borrowers”), and Wells Fargo Bank, National Association, operating through its Wells Fargo
Business Credit operating division (the “Lender”).

Recitals

The Borrowers and the Lender are parties to a Third Amended and Restated Credit and Security
Agreement dated as of December 30, 2005 (as amended to date and as the same may be hereafter
amended from time to time, the “Credit Agreement”).

The Borrowers have requested that certain amendments be made to the Credit Agreement, which
the Lender is willing to make pursuant to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
herein contained, it is agreed as follows:

1. Defined Terms. Capitalized terms used in this Amendment which are defined in the
Credit Agreement shall have the same meanings as defined therein, unless otherwise defined herein.
In addition, Section 1.1 of the Credit Agreement is amended by adding or amending, as the case may
be, the following definitions:

“Daily Three Month LIBOR” means, for any day, the rate of interest equal to LIBOR then in
effect for delivery for a three (3) month period. When interest is determined in relation
to Daily Three Month LIBOR, each change in the interest rate shall become effective each
Banking Day that the Lender determines that Daily Three Month LIBOR has changed.

“LIBOR” means the rate per annum (rounded upward, if necessary, to the nearest whole 1/8th
of one percent (1%)) determined pursuant to the following formula:

	 	 	 	 	 	 	 
	 

	 	LIBOR =
	 	Base LIBOR
 

100% - LIBOR Reserve Percentage
	 	 

 

 

 

(a) “Base LIBOR” means the rate per annum for United States dollar deposits quoted
by the Lender for the purpose of calculating the effective Revolving Floating Rate
or Term Floating Rate, as applicable, for loans that reference Daily Three Month
LIBOR as the Inter-Bank Market Offered Rate, in effect from time to time for three
(3) month delivery of funds in amounts approximately equal to the principal amount
of such loans. Borrowers understand and agree that the Lender may base its
quotation of the Inter-Bank Market Offered Rate upon such offers or other market
indicators of the Inter-Bank Market as the Lender in its discretion deems
appropriate, including but not limited to the rate offered for U.S. dollar deposits
on the London Inter-Bank Market.

(b) “LIBOR Reserve Percentage” means the reserve percentage prescribed by the Board
of Governors of the Federal Reserve System (or any successor) for “Eurocurrency
Liabilities” (as defined in Regulation D of the Federal Reserve Board, as amended),
adjusted by the Lender for expected changes in such reserve percentage during the
applicable term of the Notes.

“Maturity Date” means (i) with respect to the Term B Advances May 31, 2010, and (ii) with
respect to all other Advances, December 31, 2012.

“Prepayment Factor” means one percent (1.0%).

“Revolving Floating Rate” means an annual interest rate equal to the sum of the Prime Rate
plus two and one-half percent (2.50%) which annual rate shall change when and as the Prime
Rate Changes; provided, however, effective as of the first day of the month following the
month in which the Borrowers deliver to the Lender their audited financial statements for
the fiscal year ending December 31, 2009 “Revolving Floating Rate” shall mean Daily Three
Month LIBOR plus the Spread which annual rate shall change when and as Daily Three Month
LIBOR changes.

“Term Floating Rate” means an annual interest rate equal to the sum of the Prime Rate plus
two and one-half percent (2.50%) which annual rate shall change when and as the Prime Rate
Changes; provided, however, effective as of the first day of the month following the month
in which the Borrowers deliver to the Lender their audited financial statements for the
fiscal year ending December 31, 2009 “Term Floating Rate” shall mean Daily Three Month LIBOR
plus the Spread which annual rate shall change when and as Daily Three Month LIBOR changes.

 

-2-

 

[***] — Certain information on this page have been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.

2. Spread. Section 2.7 of the Credit Agreement is hereby amended to read it its
entirety as follows:

“Section 2.7 Spread. The spread (the “Spread”) means the percentage
set forth in the table below opposite the applicable prior-fiscal-year Net Income of
the Borrowers, which percentage shall change annually effective as of the first day
of the month following the month in which the Borrowers deliver to the Lender
their audited financial statements for the prior fiscal year; provided, however,
that in no case shall any decrease in the Spread occur during a Default Period:

	 	 	 	 	 
	Prior Fiscal Year Net Income	 	Spread	 
	 
	 	 	 	 
	Less than $0
	 	 	6.00	%
	Greater than or equal to $0
but less than $2,500,000
	 	 	5.00	%
	Greater than or equal to $2,500,000
but less than $5,000,000
	 	 	4.00	%
	Greater than or equal to $5,000,000
	 	 	3.00	%”

3. Financial Covenants. Sections 6.12 and 6.13 of the Credit Agreement are hereby
amended to read in their entireties as follows:

“Section 6.12 Minimum Capital. Heska will maintain, on a consolidated
basis, as of each date listed below, its Capital at an amount not less than the
amount set forth opposite such date:

	 	 	 
	Date	 	Minimum Capital
	October 31, 2009

	 	[***]
	November 30, 2009

	 	[***]
	December 31, 2009

	 	[***]
	January 31, 2010

	 	[***]
	February 28, 2010

	 	[***]
	March 31, 2010

	 	[***]
	April 30, 2010

	 	[***]
	May 31, 2010

	 	[***]
	June 30, 2010

	 	[***]
	July 31, 2010

	 	[***]
	August 31, 2010

	 	[***]
	September 30, 2010

	 	[***]
	October 31, 2010

	 	[***]
	November 30, 2010

	 	[***]
	December 31, 2010

	 	[***]

 

-3-

 

[***] — Certain information on this page have been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.

The covenant levels for January 31, 2010 through and including December 31,
2010 shall be adjusted upwards or downwards, respectively on a dollar-for-dollar
basis, by an amount equal to the amount by which Heska’s Capital, as evidenced by
Heska’s audited balance sheet as of December 31, 2009, is greater
than or less than [***]; provided, however, that any such downward adjustment shall
not exceed $500,000.

Section 6.13 Minimum Net Income. Heska will achieve, on a consolidated
basis, during each period described below, Net Income in an amount not less than the
amount set forth opposite such period (amounts in parentheses denote negative
numbers):

	 	 	 
	 	 	Minimum Net
	Period	 	Income
	Twelve months ending December 31, 2009

	 	[***]
	Three months ending March 31, 2010

	 	[***]
	Six months ending June 30, 2010

	 	[***]
	Nine months ending September 30, 2010

	 	[***]
	Twelve months ending December 31, 2010

	 	[***]

 

-4-

 

[***] — Certain information on this page have been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.

4. Capital Expenditures. Section 7.10 of the Credit Agreement is hereby amended to
read in its entirety as follows:

“Section 7.10 Capital Expenditures. The Borrowers, together with any
Affiliates, will not incur or contract to incur, in the aggregate, Capital
Expenditures in the aggregate during the fiscal year-to-date period ending on any
date described below in excess of the amount set forth opposite such date:

	 	 	 
	 	 	Maximum Capital
	Period	 	Expenditures
	October 31, 2009

	 	[***]
	November 30, 2009

	 	[***]
	December 31, 2009

	 	[***]
	January 31, 2010

	 	[***]
	February 28, 2010

	 	[***]
	March 31, 2010

	 	[***]
	April 30, 2010

	 	[***]
	May 31, 2010

	 	[***]
	June 30, 2010

	 	[***]
	July 31, 2010

	 	[***]
	August 31, 2010

	 	[***]
	September 30, 2010

	 	[***]
	October 31, 2010

	 	[***]
	November 30, 2010

	 	[***]
	December 31, 2010

	 	[***]

In addition to the foregoing, the amounts set forth above shall be adjusted upward
on a dollar-for-dollar basis by the amount allocated for such purpose in accordance
with Section 2.22, from the date of such increase through the end of the fiscal year
in which such increase occurs.”

5. Compliance Certificate. Exhibit B to the Credit Agreement is replaced in its
entirety by Exhibit A to this Amendment.

6. No Other Changes. Except as explicitly amended by this Amendment, all of the terms
and conditions of the Credit Agreement shall remain in full force and effect and shall apply to any
advance or letter of credit thereunder.

7. Conditions Precedent. This Amendment shall be effective when the Lender shall have
received an executed original hereof, together with the following, each in form and substance
acceptable to the Lender in its sole discretion:

(a) A Certificate of Authority of the Borrowers certifying as to the resolutions of the
boards of directors of the Borrowers approving the execution and delivery of this Amendment.

(b) Such other matters as the Lender may require.

 

-5-

 

8. Representations and Warranties. The Borrowers hereby represent and warrant to the
Lender as follows:

(a) The Borrowers have all requisite power and authority to execute this Amendment and
the Replacement Notes and to perform all of its obligations hereunder, and this Amendment
and the Replacement Notes have been duly executed and delivered by the Borrowers and
constitute the legal, valid and binding obligation of the Borrowers, enforceable in
accordance with their terms.

(b) The execution, delivery and performance by the Borrowers of this Amendment and the
Replacement Notes have been duly authorized by all necessary corporate action and do not (i)
require any authorization, consent or approval by any governmental department, commission,
board, bureau, agency or instrumentality, domestic or foreign, (ii) violate any provision of
any law, rule or regulation or of any order, writ, injunction or decree presently in effect,
having applicability to the Borrowers, or the articles of incorporation or by-laws of the
Borrowers, or (iii) result in a breach of or constitute a default under any indenture or
loan or credit agreement or any other agreement, lease or instrument to which any Borrower
is a party or by which it or its properties may be bound or affected.

(c) All of the representations and warranties contained in Article V of the Credit
Agreement are correct on and as of the date hereof as though made on and as of such date,
except to the extent that such representations and warranties relate solely to an earlier
date.

9. No Waiver. The execution of this Amendment and acceptance of the Replacement Notes
and any documents related hereto shall not be deemed to be a waiver of any Default or Event of
Default under the Credit Agreement or breach, default or event of default under any Security
Document or other document held by the Lender, whether or not known to the Lender and whether or
not existing on the date of this Amendment.

10. Release. The Borrowers hereby absolutely and unconditionally release and forever
discharge the Lender, and any and all participants, parent corporations, subsidiary corporations,
affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all
of the present and former directors, officers, agents and employees of any of the foregoing, from
any and all claims, demands or causes of action of any kind, nature or description, whether arising
in law or equity or upon contract or tort or under any state or federal law or otherwise, which any
Borrower has had, now has or has made claim to have against any such person for or by reason of any
act, omission, matter, cause or thing whatsoever arising from the beginning of time to and
including the date of this Amendment, whether such claims, demands and causes of action are matured
or unmatured or known or unknown.

 

-6-

 

[***] — Certain information on this page have been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.

11. Costs and Expenses. The Borrowers hereby reaffirm their agreement under the Credit
Agreement to pay or reimburse the Lender on demand for all costs and expenses incurred by the
Lender in connection with the Loan Documents, including without limitation all reasonable fees and
disbursements of legal counsel. Without limiting the generality of the foregoing, the Borrowers
specifically agree to pay all fees and disbursements of counsel to the Lender for the services
performed by such counsel in connection with the preparation of this Amendment and the documents
and instruments incidental hereto. The Borrowers hereby agree
that the Lender may, at any time or from time to time in its sole discretion and without further
authorization by the Borrowers, make a loan to the Borrowers under the Credit Agreement, or apply
the proceeds of any loan, for the purpose of paying any such fees, disbursements, costs and
expenses.

12. Miscellaneous. This Amendment may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an original and all of which counterparts,
taken together, shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of
the date first written above.

	 	 	 	 	 	 	 	 	 
	HESKA CORPORATION	 	 	 	DIAMOND ANIMAL HEALTH, INC.
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ Jason Napolitano
	 	 	 	By
	 	/s/ Jason Napolitano
	 

	 	 
	 	 	 	 	 	 
	 

	 	Its Chief Financial Officer
	 	 	 	 	 	Its Chief Financial Officer
	 
	 	 	 	 	 	 	 	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	[***]	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	[***], Vice President	 	 	 	 	 	 

 

-7-

 

Exhibit A to First Amendment

Compliance Certificate

	 	 	 	 	 
	To:
	 	 	 	 
	 

	 	 

Wells Fargo Business Credit
	 	 
	 
	 	 	 	 
	Date:

	 	                                        , 20___
	 	 

	 	 	 
	Subject:

	 	Heska Corporation
	 

	 	Financial Statements

In accordance with our Third Amended and Restated Credit and Security Agreement dated as of
December 30, 2005 (the “Credit Agreement”), attached are the financial statements of Heska
Corporation (“Heska”) as of and for                     , 20___
(the “Reporting Date”) and the
year-to-date period then ended (the “Current Financials”). All terms used in this certificate have
the meanings given in the Credit Agreement.

I certify that, to the best of my knowledge, the Current Financials have been prepared in
accordance with GAAP, subject to year-end audit adjustments, and fairly present the Borrowers’
financial condition and the results of its operations as of the date thereof.

Events of Default. (Check one):

	 	o	 	The undersigned does not have knowledge of the occurrence of a Default or Event
of Default under the Credit Agreement.

	 	o	 	The undersigned has knowledge of the occurrence of a Default or Event of
Default under the Credit Agreement and attached hereto is a statement of the facts with
respect to thereto.

	 	 	 	I hereby certify to the Lender as follows:

	 	o	 	The Reporting Date does not mark the end of one of the Borrowers’ fiscal
quarters, hence I am completing all paragraphs below except paragraph 4.

	 	o	 	The Reporting Date marks the end of one of the Borrowers’ fiscal quarters, hence I
am completing all paragraphs below.

Financial Covenants. I further hereby certify as follows:

1. Accounts Payable. Pursuant to Section 6.5 of the Credit Agreement, as of
the Reporting Date, Past Due Payables on a consolidated basis was $                    , which
o satisfies o does not satisfy the requirement that the Borrowers have no Past Due Payables.

 

-8-

 

[***] — Certain information on this page have been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.

2. Minimum Capital. Pursuant to Section 6.12 of the Credit Agreement, as of the
Reporting Date, Heska’s Capital was, on a consolidated basis, $_____, which o
satisfies o does not satisfy the requirement that such amount be not less than
$_____ on the Reporting Date, as set forth in the table below and adjusted, if
applicable, in accordance with Section 6.12:

	 	 	 
	Date	 	Minimum Capital
	October 31, 2009

	 	[***]
	November 30, 2009

	 	[***]
	December 31, 2009

	 	[***]
	January 31, 2010

	 	[***]
	February 28, 2010

	 	[***]
	March 31, 2010

	 	[***]
	April 30, 2010

	 	[***]
	May 31, 2010

	 	[***]
	June 30, 2010

	 	[***]
	July 31, 2010

	 	[***]
	August 31, 2010

	 	[***]
	September 30, 2010

	 	[***]
	October 31, 2010

	 	[***]
	November 30, 2010

	 	[***]
	December 31, 2010

	 	[***]

The covenant levels for January 31, 2010 through and including December 31,
2010 shall be adjusted upwards or downwards, respectively on a dollar-for-dollar
basis, by an amount equal to the amount by which Heska’s Capital, as evidenced by
Heska’s audited balance sheet as of December 31, 2009, is greater than or less than
[***]; provided, however, that any such downward adjustment shall not exceed
$500,000.

 

-9-

 

[***] — Certain information on this page have been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.

3. Minimum Net Income. Pursuant to Section 6.13 of the Credit Agreement, as of
the Reporting Date, Heska’s Net Income was, on a consolidated basis, $                    ,
which o satisfies o does not satisfy the requirement that such amount be no less
than $                     on the Reporting Date, as set forth in the table below:

	 	 	 
	 	 	Minimum Net
	Period	 	Income
	Twelve months ending December 31, 2009

	 	[***]
	Three months ending March 31, 2010

	 	[***]
	Six months ending June 30, 2010

	 	[***]
	Nine months ending September 30, 2010

	 	[***]
	Twelve months ending December 31, 2010

	 	[***]

4. Minimum Liquidity. Pursuant to Section 6.14 of the Credit Agreement, as of
the Reporting Date, Heska’s Liquidity was, on a consolidated basis, $                    ,
which o satisfies o does not satisfy the requirement that such amount be no less
than $1,500,000 on the Reporting Date.

5. Minimum Individual Book Net Worth. Pursuant to Section 6.15 of the Credit
Agreement, as of the Reporting Date, Heska’s Book Net Worth was $                     and
Diamond’s Book Net Worth was $                    , which o satisfies o does not
satisfy the requirement that such amounts be no less than zero on the Reporting Date.

6. Maximum Contributions. Pursuant to Section 7.4(a)(v) of the Credit
Agreement, as of the Reporting Date, Heska’s fiscal year-to-date aggregate contributions to
non-Borrower Subsidiaries was $                    , which o satisfies o does not
satisfy the requirement that such amounts be no more than $700,000 during any fiscal year.

 

-10-

 

[***] — Certain information on this page have been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.

7. Capital Expenditures. Pursuant to Section 7.10 of the Credit Agreement, for
the fiscal year-to-date period ending on the Reporting Date, Heska’s Capital Expenditures
were, in the aggregate and on a consolidated basis, $                     which o satisfies o
does not satisfy the requirement that such amount be not more than $                     during
the period ending on the Reporting Date, as set forth in the table below and adjusted, if
applicable, in accordance with Section 7.10:

	 	 	 
	 	 	Maximum Capital
	Period	 	Expenditures
	October 31, 2009

	 	[***]
	November 30, 2009

	 	[***]
	December 31, 2009

	 	[***]
	January 31, 2010

	 	[***]
	February 28, 2010

	 	[***]
	March 31, 2010

	 	[***]
	April 30, 2010

	 	[***]
	May 31, 2010

	 	[***]
	June 30, 2010

	 	[***]
	July 31, 2010

	 	[***]
	August 31, 2010

	 	[***]
	September 30, 2010

	 	[***]
	October 31, 2010

	 	[***]
	November 30, 2010

	 	[***]
	December 31, 2010

	 	[***]

Attached hereto are all relevant facts in reasonable detail to evidence the computations of the
financial covenants referred to above. These computations were made in accordance with GAAP.

	 	 	 	 	 
	 	HESKA CORPORATION 

 	 
	 	By  	

 	 
	 	 	Its 	 	 
	 	 	 	 

 

-11-

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