Document:

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                                                                   EXHIBIT 10.12

                              SECURITY AGREEMENT

This Security Agreement is made as of April l, 1999 between Interpet, Inc., a
Delaware corporation ("Pledgee"), and Carina Schaldach ("Pledgor").

                                   Recitals
                                   --------

Pursuant to Pledgor's purchase of 240,000 shares of the Pledgee's Common Stock
under the Common Stock Purchase Agreement dated April 1, 1999 (the "Purchase
Agreement"), between Pledgor and Pledgee, Pledgor's desires to pay for 120,000
of such shares of Pledgee's Common Stock (the "Shares") with this promissory
note (the "Note"), for a total loan of $30,000.  The Note and the obligations
thereunder are as set forth as Exhibit A to this Security Agreement.
                               ---------

NOW, THEREFORE, it is agreed as follows:

     1.   Creation and Description of Security Interest.  In consideration of
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the transfer of the Shares to Pledgor under the Purchase Agreement, Pledgor,
pursuant to the California Commercial Code, hereby pledges all of such Shares
(herein sometimes referred to as the "Collateral") represented by certificate
number C- duly endorsed in blank or with executed stock powers, and herewith
delivers said certificate to the Secretary of Pledgee ("Pledgeholder"), who
shall hold said certificate subject to the terms and conditions of this Security
Agreement.

     The pledged stock (together with an executed blank stock assignment for use
in transferring all or a portion of the Shares to Pledgee if, as and when
required pursuant to this Security Agreement) shall be held by the Pledgeholder
as security for the repayment of the Note, and any extensions or renewals
thereof, and the Pledgeholder shall not encumber or dispose of such Shares
except in accordance with the provisions of this Security Agreement.

     2.   Pledgor's Representations and Covenants.  To induce Pledgee to enter
          ---------------------------------------
into this Security Agreement, Pledgor represents and covenants to Pledgee, its
successors and assigns, as follows:

          Payment of Indebtedness.  Pledgor will pay the principal sum of the
          -----------------------
Note secured hereby, together with interest thereon, at the time and in the
manner provided in the Note.
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          Encumbrances.  The Shares are free of all other encumbrances, defenses
          ------------
and liens, and Pledgor will not further encumber the Shares without the prior
written consent of Pledgee.

          Margin Regulations.  In the event that Pledgee's Common Stock is now
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or later becomes margin-listed by the Federal Reserve Board and Pledgee is
classified as a "lender" within the meaning of the regulations under Part 207 of
Title l2 of the Code of Federal Regulations ("Regulation G"), Pledgor agrees to
cooperate with Pledgee in making any amendments to the Note or providing any
additional collateral as may be necessary to comply with such regulations.

     3.   Voting Rights.  During the term of this pledge and so long as all
          -------------
payments of principal and interest are made as they become due under the terms
of the Note, Pledgor shall have the right to vote all of the Shares pledged
hereunder.

     4.   Stock Adjustments.  In the event that during the term of the pledge
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any stock dividend, reclassification, readjustment or other changes are declared
or made in the capital structure of Pledgee, all new, substituted and additional
shares or other securities issued by reason of any such change shall be
delivered to and held by the Pledgee under the terms of this Security Agreement
in the same manner as the Shares originally pledged hereunder.  In the event of
substitution of such securities, Pledgor, Pledgee and Pledgeholder shall
cooperate and execute such documents as are reasonable so as to provide for the
substitution of such Collateral and, upon such substitution, references to
"Shares" in this Security Agreement shall include the substituted shares of
capital stock of Pledgor as a result thereof.

     5.   Options and Rights.  In the event that, during the term of this
          ------------------
pledge, subscription options or other rights or options shall be issued in
connection with the pledged Shares, such rights and options shall be the
property of Pledgor and, if exercised by Pledgor, all new stock or other
securities so acquired by Pledgor as it relates to the pledged Shares then held
by Pledgeholder shall be immediately delivered to Pledgeholder, to be held under
the terms of this Security Agreement in the same manner as the Shares pledged.

     6.   Default.  Pledgor shall be deemed to be in default of the Note and of
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this Security Agreement in the event:

               Payment of principal or interest on the Note shall be delin-
quent for a period of 10 days or more; or

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                Pledgor fails to perform any of the covenants contained in this
Security Agreement for a period of 10 days after written notice thereof from
Pledgee.

          In the case of an event of Default, as set forth above, Pledgee shall
have the right to accelerate payment of the Note upon notice to Pledgor, and
Pledgee shall thereafter be entitled to pursue its remedies under the California
Commercial Code.

     7.   Release of Collateral.  Subject to any applicable contrary rules under
          ---------------------
Regulation G, there shall be released from this pledge a portion of the pledged
Shares held by Pledgeholder hereunder upon payments of the principal of the
Note.  The number of the pledged Shares which shall be released shall be that
number of full Shares which bears the same proportion to the initial number of
Shares pledged hereunder as the payment of principal bears to the initial full
principal amount of the Note.

     8.   Withdrawal or Substitution of Collateral.  Pledgor shall not sell,
          ----------------------------------------
withdraw, pledge, substitute or otherwise dispose of all or any part of the
Collateral without the prior written consent of Pledgee.

     9.   Term.  The within pledge of Shares shall continue until the payment of
          ----
all indebtedness secured hereby, at which time the remaining pledged stock shall
be promptly delivered to Pledgor, subject to the provisions for prior release of
a portion of the Collateral as provided in paragraph 7 above.

     10.  Insolvency.  Pledgor agrees that if a bankruptcy or insolvency
          ----------
proceeding is instituted by or against it, or if a receiver is appointed for the
property of Pledgor, or if Pledgor makes an assignment for the benefit of
creditors, the entire amount unpaid on the Note shall become immediately due and
payable, and Pledgee may proceed as provided in the case of default.

     11.  Pledgeholder Liability.  In the absence of willful or gross
          ----------------------
negligence, Pledgeholder shall not be liable to any party for any of his acts,
or omissions to act, as Pledgeholder.

     12.  Invalidity of Particular Provisions.  Pledgor and Pledgee agree that
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the enforceability or invalidity of any provision or provisions of this Security
Agreement

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shall not render any other provision or provisions herein contained
unenforceable or invalid.

     13.  Successors or Assigns.  Pledgor and Pledgee agree that all of the
          ---------------------
terms of this Security Agreement shall be binding on their respective successors
and assigns, and that the term "Pledgor" and the term "Pledgee" as used herein
shall be deemed to include, for all purposes, the respective designees,
successors, assigns, heirs, executors and administrators.

     14.  Governing Law.  This Security Agreement shall be interpreted and
          -------------
governed under the internal substantive laws, but not the choice of law rules,
of California.

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

                              /s/ Carina Schaldach
"PLEDGOR"                     --------------------------------------------------
                              Carina Schaldach

"PLEDGEE"                     Interpet, Inc.
                              a Delaware corporation

                              /s/ Tom McGovern
                              --------------------------------------------------
                              Tom McGovern, President

                              /s/ Marcia Goodstein
"PLEDGEHOLDER"                --------------------------------------------------
                              Marcia Goodstein, Secretary of Interpret, Inc.

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<PAGE>

                                   EXHIBIT A
                                   ---------

                                     NOTE

$30,000                                                             Pasadena, CA
                                                                   April 1, 1999

FOR VALUE RECEIVED, Carina Schaldach promises to pay to Interpet, Inc., a
Delaware corporation (the "Company"), or order, the principal sum of Thirty
Thousand Dollars ($30,000), together with interest on the unpaid principal
hereof from the date hereof at the rate of seven percent (7%) per annum,
compounded semiannually.

Principal and interest shall be due and payable on April 1, 2004.  Payment of
principal and interest shall be made in lawful money of the United States of
America.

The undersigned may at any time prepay all or any portion of the principal or
interest owing hereunder.

This Note is secured solely by a pledge of the Company's Common Stock under the
terms of a Security Agreement of even date herewith and is subject to all the
provisions thereof.

The holder of this Note shall have no recourse against the undersigned, and
shall be required to proceed solely against the collateral securing this Note in
the event of default.

Should any action be instituted for the collection of this Note, the reasonable
costs and attorneys fees therein of the holder shall be paid by the undersigned.

                              /s/ Carina Schaldach
                              -----------------------------------------------
                              Carina Schaldach

                                       6<PAGE>

                                                                   EXHIBIT 10.13

                             SECURED PROMISSORY NOTE

                                                         Los Angeles, California
$26,267.00                                                       January 4, 2000

     FOR VALUE RECEIVED, Michael Houlahan ("Borrower"), hereby unconditionally
promises to pay to the order of PETsMART.com, Inc., a Delaware corporation, and
its successors, endorsees, transferees and assigns ("Payee"), the principal
amount of Twenty Six Thousand Two Hundred Sixty Seven Dollars of the United
States of America (U.S $26,267.00) and interest on the unpaid principal amount
hereof, on or before the earlier of (i) January 4, 2005 or (ii) (A) 30 days
after the termination of Borrower's employment with the Payee with cause (as
defined in Borrower's employment agreement with the Payee) or (B) six months
after the termination of the Borrower's employment with Payee without cause.
Interest shall accrue from the date hereof until this Note is paid in full at a
rate equal to seven percent (7%) per annum compounded semiannually. Interest
shall be computed on the basis of a 360-day year and the actual number of days
elapsed in the period.

     Borrower may at its option make principal payments on this Note without
premium or penalty. All payments of principal shall be accompanied by payments
of accrued and unpaid interest on the principal being repaid. If any payment of
principal or interest on this Note shall become due on a Saturday, Sunday or
legal holiday under the laws of the State of California, such payment shall be
made on the next succeeding business day, and any such extended time of the
payment of principal shall be included in computing interest at the rate this
Note bears prior to maturity in connection with such payment.

     Borrower shall make payment of all interest accruing on all obligations of
the Borrower now existing or hereafter incurred under, arising out of, or in
connection with this Note and the Pledge Agreement (as defined below) after the
filing of a petition by or against the Borrower under the Bankruptcy Code, in
accordance with and at the rate specified in this Note whether or not the claim
for such interest is allowed as a claim after such filing in any proceeding
under the Bankruptcy Code).

     All payments of principal, interest and other amounts payable in respect of
this Note shall be made in lawful money of the United States of America or by
personal check, at the office of Payee located at 35 Hugus Alley, Suite 210,
Pasadena, CA 91103, Attention: Chief Financial Officer or at such other place
that Payee shall have designated in writing for such purpose. Payee shall,
before disposing of this Note or any part hereof, make a notation hereon of all
principal and interest payments previously made hereunder and of the date to
which interest hereon has been paid; provided, that the failure to correctly
make a notation of any payment made on this Note shall not limit or otherwise
affect the obligation of Borrower under this Note with respect to any loan
evidenced hereby or payments of principal or interest on this Note.

     The proceeds of this Note, together with $133.00 in cash, shall be used by
the Borrower, to purchase 132,000 shares of Common Stock (the "Common Stock") of
Payee under the 1999 Stock Plan Stock Option Agreement, dated May 12, 1999,
between the Borrower and the Payee (the "Option Agreement"), which Common Stock
shall secure this Note pursuant to the Pledge Agreement between the Borrower and
Payee, dated as of the date hereof (the "Pledge Agreement"). No reference herein
to the Pledge Agreement and no provision of this Note or the Pledge Agreement
shall alter or impair the obligation of Borrower, which is absolute and
unconditional, to pay the principal of and interest on this Note at the place,
at the respective times, and in the currency herein prescribed.

     The occurrence of any of the following shall constitute an "Event of
Default":
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                  (1) failure of Borrower to pay any principal, interest or
         other amount due under this Note when due, whether at stated maturity,
         by acceleration, by notice of prepayment or otherwise, in each case
         within ten (10) days after the same becomes due and payable;

                  (2) breach of any other representation, warranty or covenant
         of Borrower contained in this Note or of the Pledgor (as defined
         therein) in the Pledge Agreement;

                  (3) an involuntary case shall be commenced against Borrower or
         a court having jurisdiction shall enter a decree or order for relief in
         respect of Borrower in an involuntary case, under any applicable
         bankruptcy, insolvency or other similar law now or hereafter in effect
         (collectively, "Bankruptcy Laws"), which decree or order is not stayed;
         or any other similar relief shall be granted under any other law; or a
         decree or order of a court having jurisdiction for the appointment of a
         receiver, liquidator, sequestrator, trustee, custodian or other officer
         having similar powers over Borrower, or over all or a substantial part
         of Borrower's property, shall have been entered; or the involuntary
         appointment of an interim receiver, trustee or other custodian of
         Borrower for all or a substantial part of Borrower's property; or the
         issuance of a warrant of attachment, execution or similar process
         against any substantial part of the property of Borrower; or

                  (4) Borrower shall have an order for relief entered with
         respect to it or commence a voluntary case under any applicable
         Bankruptcy Law, or shall consent to the entry of an order for relief in
         an involuntary case, or to the conversion to an involuntary case, under
         any such law, or shall consent to the appointment of or taking
         possession of a receiver, trustee or other custodian for all or a
         substantial part of Borrower's properties; the making by Borrower of
         any assignment for the benefit of creditors; or the inability or
         failure of Borrower, or the admission of Borrower in writing of its
         inability, to pay its debts as such debts become due.

     Upon the occurrence of any Event of Default specified in items (3) or (4)
above, the principal of this Note, together with all unpaid interest and all
other amounts payable hereunder, shall become due and payable forthwith, without
presentment, demand, notice, protest or other requirement of any kind, all of
which are expressly waived by Borrower. Upon the occurrence of any event
specified in items (1) or (2) above, Payee may, by written notice to Borrower,
declare this Note, together with all unpaid interest and all other amounts
payable hereunder, and this Note, together with all unpaid interest and all
other amounts payable hereunder, shall immediately become, due and payable
without presentment, further demand or notice, protest or other requirements of
any kind, all of which are expressly waived by Borrower.

     Borrower agrees to advise Payee as to the occurrence of any event or
existence of any condition that, with the passage of time or giving of notice,
or both, could constitute an Event of Default as soon as possible but not later
than two business days after Borrower becomes aware of the occurrence of such
event or existence of such condition. The failure to provide such notice will
constitute an Event of Default.

     This Note shall be construed and enforced in accordance with, and shall be
governed by, the laws of the State of California, without regard to conflict of
law principles thereof. Borrower and Payee further agree that a non-exclusive
forum for the determination of any action relating to this Note or the Pledge
Agreement shall include an appropriate court of the State of California or the
United States District Court or United States Bankruptcy Court for the District
of California and Borrower and Payee hereby irrevocably submit to the
jurisdiction thereof.

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     To the maximum extent permitted by law, Borrower and Payee hereby expressly
waive any right to trial by jury of any action, cause of action, claim, demand,
or proceeding arising under or with respect to this Note, or in any way
connected with, related to, or incidental to the dealings of Borrower and Payee
with respect to this Note or the transactions related hereto, in each case
whether now existing or hereafter arising, and irrespective of whether sounding
in contract, tort, or otherwise. To the maximum extent permitted by law,
Borrower and Payee each mutually agree that any such action, cause of action,
claim, demand, or proceedings shall be decided by a court trial without a jury
and that the defending party may file a copy of this section with any court or
other tribunal as written evidence of the consent of the complaining party to
the waiver of its right to trial by jury.

     Borrower promises to pay all costs and expenses, including attorneys' fees,
incurred in the collection and enforcement of this Note, including, without
limitation, enforcement before any court and including all appellate
proceedings. Borrower hereby consents to renewal and extensions of time at or
after the maturity hereof, without notice, and hereby waives diligence,
presentment, protest, demand and notice of every kind and, to the full extent
permitted by law, the right to plead any statute of limitations as a defense to
any demand hereunder.

     No delay or omission on the part of Payee in the exercise of any right or
remedy shall operate as a waiver thereof, and no single or partial exercise by
Payee of any right or remedy shall preclude any other or further exercise
thereof or the exercise of any other right or remedy. The rights and remedies of
Payee are cumulative and not exclusive of any rights or remedies it otherwise
has.

     Wherever possible each provision of this Note shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of this Note shall be prohibited by or invalid under such law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Note, shall be interpreted so as to be effective and valid.

     The holder of this Note shall have the right at any time to sell, assign,
transfer, negotiate or pledge all or any part of its interest in this Note.
Borrower may not assign, and no person may assume, any of the obligations of
Borrower under this Note without the prior written consent of Payee, which
consent may be granted or withheld in Payee's sole discretion, and any attempt
to do so without such consent shall be void.

     IN WITNESS WHEREOF, Borrower has executed and delivered this Note as of the
day and year and at the place first written above.

                              Borrower

                              By: /s/ M. Houlahan
                                  ---------------------------------
                                  Michael Houlahan
                                  1438 Ontario Avenue
                                  Pasadena, CA  91103

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