Document:

Exhibit
10.2

AGREEMENT
FOR PRODUCT PURCHASES

THIS AGREEMENT for
Product Purchases (this “Agreement”),
executed as of this 1st day of December, 2006, is made by and between
MWI Veterinary Supply Co., located at 651 S. Stratford Dr., Suite 100,
Meridian, ID 83642 (“MWI”) and
Medical Management International, Inc., dba Banfield, The Pet Hospital®,
located 8000 NE Tillamook Street, Portland, OR 97213 (“Banfield”).  The
parties agree to the following:

1.                                      Product
Pricing.

MWI will invoice
products to Banfield at prices equal to MWI’s ** or **, whichever is lower.  MWI’s ** is the ** for each particular
product based on all of the ** for each particular product and the related **
of each ** from the **.  As an example,
for Product A if MWI has **, and MWI ** units ** $**, ** units ** $** and **,
then MWI’s ** would equal **.

2.                                      Special
Inventory Provision.

In the event that
Banfield should stop purchasing or convert away from any inventory items that
are Banfield branded or that are otherwise unique to Banfield, Banfield agrees
to purchase or cause the respective manufacturer to restock MWI’s remaining
inventory of these products with no penalty to MWI.  MWI will provide to Banfield each ** a report
listing all items that are stocked exclusively for Banfield, including on-hand
quantities. MWI will not hold Banfield responsible for items stocked that are
also sold to MWI’s core customers in sufficient quantities such that the excess
inventory could be sold by MWI within **.

3.                                      Freight.

On all sales,
title and risk of loss will pass upon delivery of the goods to the Banfield
hospital or other destination.  MWI will
make arrangements for transportation of all goods to the ordering hospital by
carriers approved by Banfield.  ** will
pay the carriers.  All goods will be shipped
by next-day ground transportation if available from an MWI
warehouse.  If next-day ground
transportation is not available, MWI will utilize such alternative as is
approved by Banfield.  MWI will charge
Banfield freight expense ** for merchandise shipped by MWI.  The **, will be equal to the **.  Actual freight costs will include ** (based
on the maintenance of at least ** by MWI); and will reflect the ** by MWI;
provided, however, that ** will be included to the extent they result from **
by a mode of transportation or carrier other than those specified above without
the approval of Banfield.  Banfield and
MWI will develop a plan to limit shipments from MWI secondary warehouses to the
greatest extent possible in order to reduce the related freight expense.  MWI will maintain complete records of all
freight costs and will make such records available for audit by Banfield at any
time upon no less than 72 hours prior written notice from Banfield.  MWI and Banfield will regularly review
freight companies, contracts, delivery methods and processes in an effort to
reduce delivery costs to Banfield.

4.                                      Payment
Terms.

MWI will extend
payment terms to Banfield of net ** from invoice date.  When using the consolidated invoice download,
the invoice date will be considered to be the date of the

consolidated
invoice weekly report.  Banfield may
prepay for purchases by issuing a payment to MWI for approximately ** days
of purchases.  **.  **.   Banfield
and MWI will review and true up Banfield’s account once each month by an
additional payment from Banfield if the prepayment was less than the actual
invoice total and by a refund to Banfield if the prepayment exceeded the actual
invoice total.  Banfield also agrees to make
all payments via electronic funds transfer.

5.                                      Provisions
Regarding Delivery.

Unless otherwise
requested by Banfield, all orders other than opening orders and resets will be
delivered directly to the ordering hospital. 
** hospital orders will be transmitted to MWI on ** ** and deliveries
will be made on **, if next day ground transportation is available, otherwise
on **.  MWI will send to Banfield each **
a report listing hospitals that did not submit ** orders on schedule.  In order to ensure that orders are properly
received by the hospitals (e.g. that goods requiring refrigeration are promptly
placed into a refrigerator), MWI will be responsible for seeing that all orders
(other than the opening order) are delivered when the hospital is open and a
hospital team member is available to receive the order, provided that MWI is
given the current operating hours for all such hospitals on a current basis.  In order to permit Banfield to schedule the
activities of its opening team, MWI will be responsible for seeing that opening
orders are delivered on or before the date specified by Banfield, provided such
date is specified no less than ** business days in advance.

MWI will use its
reasonable best efforts to ship products with no less than ** remaining before the
expiration or “out-of-code” date on any product, and will not in any case ship
products with less than ** dating on any “new-hospital opening” order.

MWI will, within
**business days of each month-end, provide to Banfield the **.

6.                                      **.

**.

7.                                      Term.

This Agreement
shall be effective December 1, 2006 through November 30, 2009 (the “Initial Term”).  During
the final 90 days of the Initial Term, MWI and Banfield will analyze the fiscal
results of the prior three years and agree upon any revisions to the pricing or
other aspects of this Agreement (the “Review Period”).  During this time, Banfield and MWI will
discuss and assess options to reduce costs to Banfield.  If the parties reach agreement in writing
upon any adjustment to pricing or other provisions of this Agreement during the
Review Period, then the term of this Agreement will continue for an additional 12
months from the end of the Initial Term. 
If, before or during the first 30 days of the Review Period either party
communicates a concern or required revision in writing and a resolution is not
achieved to the mutual satisfaction of both parties during the Review Period,
this Agreement shall terminate at the end of the Initial Term.  If no such communications are set forth in
writing, before or during the first 30 days of the Review Period, this Agreement
will automatically renew for an additional 12 months from

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the end of the Initial
Term.  This process will continue year
after year, unless MWI and Banfield cannot reach agreement during any Review
Period.

8.                                      Termination.

Notwithstanding
anything in Section 7 hereof, either party may terminate this Agreement at any
time, whether during or after the Initial Term, with or without cause, provided
that Banfield will give MWI at least one hundred fifty (150) days prior written
notice if Banfield elects to terminate and MWI will give Banfield at least one
hundred fifty (150) days prior written notice if MWI elects to terminate.  Upon termination of this Agreement, any and
all rights and obligations of the parties under this Agreement will terminate,
provided that all rights, obligations or liabilities accrued hereunder prior to
termination, and all rights or obligations which by their nature or express
duration extend beyond the termination of this Agreement, will survive
termination and continue in effect indefinitely or for that express duration.

9.                                      Disclaimer
and Limitation of Warranties and Remedies.

9.1                               Limited
Warranty.  There are no
warranties that extend beyond the description on the face of this limited
warranty.  MWI makes no warranties either
express or implied regarding title, quality or conformity of the products,
including without limitation no implied warranty of merchantability, no implied
warranty of fitness for a particular purpose, and no implied warranty arising
from any course of dealing, usage of trade or advertising, except the following
express warranties with respect to all goods sold by MWI and paid for by
Banfield:  (1) the title conveyed is
good, and its transfer rightful, (2) the products shall be delivered free
of any security interest, lien or encumbrance, (3) the products delivered
will conform to the description, grade and condition of the products invoiced, and
(4) all products will be free and clear of any defects arising from the
failure of MWI to properly handle and store such products or from any other
cause while such products are in MWI’s possession or control or in the
possession or control of any carrier transporting the goods from MWI to
Banfield.

9.2                               Remedies.  Banfield’s exclusive remedy for breach of
warranty is to return the products (at MWI’s expense) for refund of the
purchase price, or repair or replacement of the nonconforming products.  MWI has the exclusive right to select the
remedy.  Neither party shall have any liability
to the other for incidental, consequential, exemplary, or punitive damages.

9.3                               Manufacturer’s
Warranty.  The manufacturer of
the products may provide its own warranty. 
All such warranties will be passed on to Banfield to the fullest extent
allowed.  MWI does not represent or
warrant the existence or scope of manufacturer’s warranty.

10.                               Confidential
Information.

Except for any
disclosure required by law, each party agrees to retain all confidential
information received from the other party in confidence, not to disclose any
such information to any other person, and not to use any such information for
its own benefit, to the other party’s detriment or for any purpose other than
in furtherance of this Agreement.  All
information which either party and any of its agents receives at any time from the
other party or any of its agents shall be deemed confidential and subject to
the provisions of this Section 10, whether the information

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shall be received
orally, in writing, visually, by inspection of documents, products or
processes, by electronic transmission, or in any other form or manner,
excepting only information which the recipient establishes was generally
available to the public at the time of disclosure or subsequently became
generally available to the public other than as a result, directly or
indirectly, of disclosure by the recipient or its agents.  Information shall be confidential and shall
be subject to this Section 10 whether or not it is marked or designated “confidential”
at the time of disclosure. 
Notwithstanding the provisions above, the recipient may disclose
confidential information to its agents only to the limited extent necessary to
carry out this Agreement and maintain the business relationship.  The recipient shall be fully responsible for
any use or disclosure of confidential information by any of its agents in
violation of this Section 10.

11.                               Return
Goods Policy.

As a channel of
distribution, MWI generally follows the Return Goods Policy of each
manufacturer whose goods MWI distributes. 
If products are ordered in error by a Banfield Hospital, they may be
returned, if in saleable condition, without penalty.  In most instances, such product can be
returned via commercial carrier with the freight cost paid by Banfield.  If products are shipped in error by MWI, they
may be returned without penalty, MWI will pay the freight costs.

12.                               Force
Majeure.

In the event MWI
shall be unable or fail at any time to supply, or Banfield shall be unable or
fail at any time to take and purchase, any product to be sold and purchased
hereunder in consequence of fire, explosion, accident, earthquake, flood,
drought, embargo, war (whether or not declared), riot, terrorist attack, governmental
act, delay or failure of carriers, Acts of God, or any other contingency or
delay or failure or cause beyond the control of the party affected, excluding
economic conditions affecting either party, MWI shall not be liable to Banfield
for failure to supply the product, nor shall Banfield be liable to MWI for
failure to take or purchase the product, during the period of such disability
or failure.

13.                               Notices.

Any notice or
demand given by either party to the other shall be in writing and shall be sent
by courier, certified mail, postage prepaid, return receipt requested, or fax,
addressed as follows:

	
  If to MWI:

  	
   

  	
  651 S. Stratford Drive, Suite 100

  	
   

  	
  If to Banfield:

  	
   

  	
  8000 NE Tillamook Street

  
	
   

  	
   

  	
  Meridian, ID 83642

  	
   

  	
   

  	
   

  	
  Portland, OR 97213

  
	
   

  	
   

  	
  Attn: Director, Banfield Accounts

  	
   

  	
   

  	
   

  	
  Attn: Senior Director of Purchasing

  
	
   

  	
   

  	
  Fax: 208-955-8999

  	
   

  	
   

  	
   

  	
  Fax: 503-922-6147

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  651 S. Stratford Drive

  	
   

  	
  With a copy to:

  	
   

  	
  Banfield, The Pet Hospital

  
	
   

  	
   

  	
  Suite 100

  	
   

  	
   

  	
   

  	
  8000 NE Tillamook Street

  
	
   

  	
   

  	
  Meridian, ID 83642

  	
   

  	
   

  	
   

  	
  Portland, OR 97213

  
	
   

  	
   

  	
  Attn: President

  	
   

  	
   

  	
   

  	
  Attn: Legal Counsel

  
	
   

  	
   

  	
  Fax: 208-955-8999

  	
   

  	
   

  	
   

  	
  Fax: 503-922-6112

  

 

Notice sent by
courier shall be deemed effective upon delivery.  Notice sent by certified mail shall be deemed
effective on the third business day after its deposit in the U.S. mail.  Notice sent

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by fax shall be deemed
effective upon machine confirmation of receipt. 
Either party may by written notice change its address for purposes of
this Agreement.

14.                               Entire
Agreement and Modifications.

This Agreement
constitutes the entire agreement and understanding of the parties and
supersedes any prior agreements and understandings between the parties with
respect to the specific subject matter hereof.  This Agreement cannot be modified except in
writing signed by both parties.  Furthermore,
MWI and Banfield agree that the waiver of the breach of any term or condition
of this Agreement shall not be deemed to constitute the waiver of any
subsequent breach of the same or any other term or condition.

15.                               Governing
Law.

This Agreement
shall be governed by, interpreted, construed, and the respective rights of the
parties hereto determined and all claims and disputes, whether in tort,
contract or otherwise, resolved according to the laws of the State of Oregon
notwithstanding any conflict of law principles to the contrary.  Any proceeding initiated by MWI arising out of
or in connection with this Agreement will be determined solely by a state or
federal court in Multnomah County, Oregon, and any proceeding initiated by
Banfield arising out of or in connection with this Agreement will be determined
fully by a state or federal court located in Ada County, Idaho, and the parties
consent to the jurisdiction of those courts.

16.                               Successors
and Assignment.

All of the terms
and provisions of this Agreement will be binding on and inure to the benefit of
the parties and their respective successors and assigns.  Neither party may assign, delegate nor
transfer to third parties its rights or obligations hereunder without the prior
written consent of the other party.

17.                               Counterpart
Signatures.

This Agreement may
be executed in counterparts, each of which will be deemed an original but all
of which will constitute one and the same instrument.

18.                               Insurance.

MWI will at all
times maintain insurance in an amount equal to at least the replacement cost of
all Banfield property held directly or indirectly by MWI.  MWI will provide Banfield with a certificate
of insurance naming Banfield as an additional insured with respect to such
coverage.  Specifically, the certificate
should reference “Property of Others” with the limits and deductibles stated.

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In
witness whereof, the parties have executed this Agreement as of the date first
written above.

	
  MEDICAL MANAGEMENT

  	
   

  	
  MWI VETERINARY SUPPLY CO.

  
	
  INTERNATIONAL,
  INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
  /s/ John Payne

  	
   

  	
   

  	
  By

  	
  /s/ Jim Cleary

  	
   

  
	
   

  	
  John Payne

  	
   

  	
   

  	
  Jim Cleary

  
	
   

  	
  Sr. Vice President

  	
   

  	
   

  	
  President &
  CEO

  
	
   

  	
  Practice Development

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
  /s/ Bob Rusunen

  	
   

  	
   

  	
  By

  	
  /s/ Jim Ross

  	
   

  
	
   

  	
  Bob Rusunen

  	
   

  	
   

  	
  Jim Ross

  
	
   

  	
  Sr. Director of Purchasing

  	
   

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  	
  Business
  Development, Banfield

  

 

 6Exhibit 10.3

MWI Veterinary Supply

2007
- 2008 MERIAL INDEPENDENT SALES AGENT AGREEMENT

THIS 2007 - 2008
MERIAL INDEPENDENT SALES AGENT AGREEMENT (“Agreement”), is executed  as of this 16th day of November, 2006 and
effective as of the “Commencement Date” as defined below, by and between MERIAL
LIMITED, a company limited by shares registered in England and Wales
(registered number 3332751) with a registered office at P.O. Box 327, Sandringham House,
Sandringham Avenue, Harlow Business Park, Harlow, Essex CM19 5QA, England,
and domesticated in Delaware, U.S.A. as MERIAL LLC, with a place of business at
3239 Satellite Boulevard, Duluth, Georgia 30096-4640 USA (hereinafter “MERIAL”)
and MWI Veterinary Supply Co., with a place of business at 651 S. Stratford
Drive, Meridian, ID 83642 (hereinafter called “Independent Sales Agent”).

W I T N E S S E T
H:

WHEREAS, MERIAL is
a company that researches, develops, manufactures and distributes
pharmaceutical and biological products for animal health use, including
products for companion animals;

WHEREAS,
Independent Sales Agent employs representatives (“Sales Agent Representatives”)
who call upon veterinarians, in person and via telephone, to sell products to
be used for companion animals;

WHEREAS, MERIAL
desires to appoint Independent Sales Agent to sell, market and provide services
related to MERIAL companion animal products; and

WHEREAS,
Independent Sales Agent accepts such appointment under the terms and conditions
hereinafter set forth;

NOW THEREFORE, in
exchange for the promises and covenants described in the Agreement, and other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, MERIAL and Independent Sales Agent hereby agree as follows:

1.  DEFINITIONS AND INTERPRETATION

1.1                                 Definitions

In this Agreement
and any Schedules incorporated herein, each expression below shall have the
following meaning unless expressly stated otherwise:

(a)                                  “Affiliate”
shall mean (i) any business entity fifty percent (50%) or more of which is
owned directly or indirectly by a party to this Agreement; (ii) any business
entity which directly or indirectly owns fifty percent (50%) or more of a party
to this Agreement; or (iii) any business entity under the direct or indirect control
of any business entity as described in (i) or (ii) above.

(b)                                 “AMA”
shall mean an Authorized Merial Account.

(c)                                  “Business
Day” shall mean a day (except a Saturday or Sunday) on which banks in the
U.S.A. are open for the normal range of banking business;

(d)                                 “Commencement
Date” shall mean January 1, 2007;

(e)                                  “Confidential
Information” shall have the meaning given in paragraph 14.6 hereof;

(f)                                    “EDI”
shall mean Electronic Data Interchange System;

(g)                                 “EDI
Information” shall mean EDI and procedures set forth in Schedule C, attached
hereto and incorporated herein, such information including MERIAL companion
animal product sales and AMA information consisting at a minimum of the
customer’s name, address and account number as well as MERIAL companion animal
product purchase information, including MERIAL companion animal product name
and quantity of MERIAL companion animal product purchased by package size and
units;

(h)                                 “Interest
Rate” shall mean the interest rate that is two percent (2%) above Citibank-New York
branch’s prevailing prime rate in existence in the U.S.A.;

(i)                                     “Monthly
Business Share” shall mean the Independent Sales Agent’s percent share of the
respective month’s total of the following: 
(i) commissioned sales (for which the Independent Sales Agent is named),
(ii) Net Sales on which EDI transaction fees are paid to the Independent Sales
Agent, and (iii) Net Sales made to NHOs for which a sales commission is paid to
the Independent Sales Agent.  Monthly Business
Share percentages are as provided in Schedule B hereto;

(j)                                     “Named
Sales Agent” shall mean the Independent Sales Agent that is designated on an
order by an Independent Sales Agent code;

(k)                                  “Named
Sales Agent Sale(s)” shall mean a sale to an AMA in the Named Sales Agent’s
Territory generated by placement of an order with MERIAL by (i) the Named Sales
Agent; (ii) an AMA designating a Named Sales Agent; or (iii) an authorized
MERIAL representative designating the Independent Sales Agent as the Named
Agent;

(l)                                     “Net
Sales” shall mean sales net of all discounts, rebates (including, but not
limited to, free goods, consumer coupons, and free dose offers) and returns;

(m)                               “NHO”
shall mean Network Hospital Organization;

(n)                                 “Other
Products” shall mean the finished MERIAL companion animal products, jointly and
severally, in such sizes and presentation forms as set forth in Schedule E,
attached hereto and incorporated herein. 
The list of Other Products set forth in Schedule E may be amended, as
MERIAL in its sole discretion determines necessary, to (i) include other
products which MERIAL may hereafter develop, manufacture, or market, or (ii)
delete Other Products;

(o)                                 “Party”
shall mean MERIAL or Independent Sales Agent;

(p)                                 “Products”
shall mean the finished MERIAL companion animal products, jointly and
severally, in such sizes and presentation forms as set forth in Schedule A,
attached hereto and incorporated herein. The list of Products set forth in
Schedule A may be amended, as MERIAL in its sole discretion determines
necessary, to (i) include other 

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products which MERIAL may hereafter develop,
manufacture, or market, or (ii) delete Products;

(q)                                 “Product
Literature” shall mean all advertising, promotional and technical literature,
label and packaging text, package inserts or other material that bears a
Trademark or that is used in the promotion of the Products and Other Products;

(r)                                    “Property”
shall have the meaning given in paragraph 9.1 hereof;

(s)                                  “Sales
Agent Representatives” shall have the meaning given in the second whereas
clause.

(t)                                    “Sales
Goal,” as specifically set forth in Schedule D hereto, shall mean the sum of
all Net Sales derived from (i) commissioned sales (for which the Independent
Sales Agent is named ), (ii) Net Sales on which EDI transaction fees are paid
to the Independent Sales Agent, and (iii) Net Sales made to NHOs for which a
sales commission is paid to the Independent Sales Agent;

(u)                                 “Term”
shall mean the duration of this Agreement as defined in paragraph 3.1 herein
and any renewal(s) hereof;

(v)                                 “Termination
Fee” shall have the meaning given in paragraph 3.2 hereof;

(w)                               “Territory”
shall mean the following geographic area: 
United States

(x)                                   “Trademarks”
shall mean all designated proprietary trademarks, and associated trade dress,
tradenames, symbols, brand names, package designs and the like now or hereafter
owned, acquired, used or registered by MERIAL in the Territory to identify (i)
the Products of MERIAL, set forth in attached Schedule A, and which are to be
used only on or in relation to the Products and (ii) the Other Products of
MERIAL, set forth in attached Schedule E, and which are to be used only on or
in relation to the Other Products;

(y)                                 “United
States” or “U.S.A” shall mean the fifty (50) states and the District of
Columbia that make up the United States of America;

(z)                                   “Veterinary
Trade” shall mean practicing veterinarians and animal hospitals that are in
compliance with the rules of the American Veterinary Medical Association.

1.2                                 Interpretation

In this Agreement,
unless expressly stated otherwise:

(a)                                  a
reference to any Party includes that Party’s executors, administrators and
permitted assigns, or being a company, its successors and permitted assigns;

(b)                                 the
singular includes the plural and vice versa;

(c)                                  a
reference to a gender includes each gender;

(d)                                 a
reference to a person includes an individual, firm, body, corporation,
association (whether incorporated or not) and authority or agency (whether
governmental, semi-governmental or local);

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(e)                                  a
reference to time of day is to the time applicable at the relevant date in the
Eastern time zone in the U.S.A.;

(f)                                    the
inclusion of headings, clause numbers, italics, bold print and underlining is
for convenience of reference only and shall not affect the interpretation of
this Agreement;

(g)                                 the
schedules attached hereto are incorporated herein and deemed a part of this
Agreement;

(h)                                 a
reference to any agreement or document is to that agreement or document (and,
where applicable, any of its provisions) as amended, novated, supplemented or
replaced from time to time;

(i)                                     a
reference to any statute, regulation, rule or other legislative provision
includes any amendment to, statutory modification or re-enactment of,
legislative provision substituted for, and any statutory instrument issued
under that statute, regulation, rule or other legislative provision;

(j)                                     where
the performance of an obligation under this Agreement falls on a day other than
a Business Day, this Agreement shall be construed as requiring that obligation
to be performed on the next Business Day;

(k)                                  unless
otherwise expressly stated herein, any reference to dollars or money shall mean
the lawful currency of the United States;

(l)                                     the
word “writing” includes typewriting, printing, lithography, photography and
other modes of visibly representing words and the word “written” has a
corresponding meaning.

2.                                       RIGHTS
GRANTED

2.1                                 Subject
to the terms and conditions hereof, MERIAL hereby appoints Independent Sales
Agent to sell, market and provide services related to the Products to the
Veterinary Trade in the Territory during the term of this Agreement.  Independent Sales Agent hereby accepts MERIAL’s
appointment and agrees to use its reasonable efforts to promote the sale of the
Products to the Veterinary Trade in the Territory.  Independent Sales Agent further agrees to
perform such services and other independent sales agent functions in the
Territory as MERIAL may from time to time reasonably request.  Furthermore:

(a)                                  Independent
Sales Agent is authorized to obtain orders on behalf of MERIAL for the Products
from established AMAs in the Territory and from new accounts within the
Veterinary Trade within the Territory, after MERIAL has approved such
account(s) as an AMA(s).  MERIAL shall
pay commissions on the Net Sales of orders for Products from new and established
AMAs within the Territory according to the schedule and terms outlined in
Schedule B, attached hereto and incorporated herein by this reference.

(b)                                 Independent
Sales Agent is authorized to obtain orders on behalf of MERIAL for the Products
from established NHOs within the Territory. 
MERIAL shall pay commissions on the Net Sales of orders for Products
from NHOs within the Territory according to the schedule and terms outlined in
Schedule B.

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2.2                                 Subject
to the terms and conditions hereof, MERIAL hereby appoints Independent Sales
Agent to sell, market and provide services related to the Other Products to the
Veterinary Trade in the Territory during the term of this Agreement.  Independent Sales Agent hereby accepts MERIAL’s
appointment.  Furthermore:

(a)                                  Independent
Sales Agent is authorized to obtain orders for the Other Products from
established AMAs in the Territory and from new accounts within the Veterinary
Trade within the Territory, after MERIAL has approved such account(s) as an
AMA(s).  MERIAL shall pay Independent
Sales Agent a transaction fee of one percent (1%) for the Net Sales of each
order for products listed as Other Products on Schedule E within the Territory,
which is transmitted to MERIAL via EDI. 
No fee will be paid to Independent Sales Agent by MERIAL for orders
within the Territory which are not transmitted to MERIAL via EDI, as required
hereunder.

(b)                                 Independent
Sales Agent is authorized to obtain orders for the Other Products from NHOs in
the Territory.  MERIAL shall pay Independent
Sales Agent for the Net Sales value of each order for Other Products from NHOs
within the Territory which is transmitted to MERIAL via EDI at a rate of one
percent (1%).

2.3                                 It
is expressly understood and agreed that the Independent Sales Agent is an
independent contractor and Independent Sales Agent shall have no authority, and
shall not represent that it has any authority, to bind MERIAL to any
obligation, to act for or on behalf of MERIAL, to extend any warranty or make
any representation on behalf of MERIAL, or otherwise to assume, create or
enlarge any obligation or responsibility on behalf of MERIAL or in MERIAL’s
name. This Agreement does not constitute appointment of Independent Sales Agent
as a distributor or franchisee or authorize the same to act as an agent for
MERIAL for any purposes other than those that are expressly provided for
herein.

2.4                                 Independent
Sales Agent expressly acknowledges and agrees that during the term of this
Agreement, MERIAL may, upon fourteen (14) days written notice, amend Schedule
A, as MERIAL in its sole discretion determines necessary, to (i) include
additional products which MERIAL may hereafter develop, manufacture, or market,
or (ii) delete Products, and such addition or deletion of products shall not be
a breach of this Agreement or be considered termination of this Agreement.

2.5                                 Independent
Sales Agent expressly acknowledges and agrees that during the term of this
Agreement, MERIAL may, upon fourteen (14) days written notice, amend Schedule
E, as MERIAL in its sole discretion determines necessary,  to (i) include additional products which
MERIAL may hereafter develop, manufacture, or market, or (ii) delete Other
Products, and such addition or deletion of products shall not be a breach of
this Agreement or be considered termination of this Agreement.

2.6                                 MERIAL
reserves the right to independently audit commissions and transaction fees paid
by Independent Sales Agent to its Sales Representatives, pursuant to Schedule
B, for sales related to MERIAL Products and/or Other Products.

2.7                                 Independent
Sales Agent expressly acknowledges and agrees that nothing contained herein
authorizes Independent Sales Agent to appoint or create other or sub
independent sales agents in the Territory without the prior written consent of
MERIAL. MERIAL reserves the right to expand or reduce the Territory upon thirty
(30) days’ written notice to Independent Sales Agent and to authorize other
independent

 5
 

sales agents to sell MERIAL Products and/or Other
Products, with or without commission or transaction fee, in the Territory.  The expansion or reduction in the geographic
boundaries of the Territory shall not be a breach of this Agreement or be
considered a termination of this Agreement.

2.8                                 Independent
Sales Agent shall refrain, in relation to the sale and promotion of Products or
Other Products, from establishing any branch or distribution depot outside the
United States and from actively seeking customers or orders outside the United
States, without the prior written consent of MERIAL.

2.9                                 Independent
Sales Agent shall sell the Product(s) and/or Other Product(s) only to those
AMAs or Veterinary Trade accounts in which the veterinarian dispenses the
Product(s) and/or Other Product(s) to clients with whom the veterinarian has an
existing veterinarian-client-patient relationship and which accounts comply
with other MERIAL criteria as communicated from time to time by MERIAL to
Independent Sales Agent in writing.

2.10                           If
Independent Sales Agent becomes aware or MERIAL notifies Independent Sales
Agent that any AMA or Veterinary Trade account does not comply with any
criteria set forth pursuant to Paragraph 2.9 (giving reasons if so requested),
Independent Sales Agent shall promptly cease to sell to that account and shall
not resume sales until MERIAL is satisfied that MERIAL criteria are met.  MERIAL’s decision as to whether an AMA or
Veterinary Trade account complies with MERIAL criteria shall be final.

3.                                       TERM
AND TERMINATION 

3.1                                 This
Agreement will be deemed to have commenced on the Commencement Date and,
subject to its terms and conditions, shall continue in full force and effect
from the Commencement Date through and until 31 December 2008.  This Agreement may be renewed for successive
terms by mutual agreement expressed in writing and signed by MERIAL and
Independent Sales Agent.

3.2                                 Either
party may terminate this agreement without cause and without penalty upon one
hundred twenty (120) days’ prior written notice.  In the event that either party terminates
this Agreement without cause upon less than one hundred twenty (120) days’
prior written notice, such party will be obligated to pay a sum equal to the
total commissions earned by Independent Sales Agent during the preceding four
(4) month period (the “Termination Fee”); provided, however, that MERIAL’s
obligation to pay the Termination Fee shall be subject to its rights under
paragraph 7.1(c).  Except as otherwise
provided in this Agreement, this Agreement shall terminate thirty (30) days
after (i) either Party gives the other Party written notice of the other Party’s
default of any of its material obligations under this Agreement, and (ii) the
other Party fails to cure such default within such thirty (30) day period.

3.3                                 MERIAL
may terminate this Agreement immediately by giving written notice of such
termination to Independent Sales Agent, and such termination shall take effect
upon receipt of such notice, in the event of any of the following:

(a)                                  Independent
Sales Agent informs MERIAL in writing or its creditors generally that
Independent Sales Agent is insolvent or is otherwise unable to meet its
obligations;

 6
 

(b)                                 an
application is made to a court for the winding up of Independent Sales Agent’s
business;

(c)                                  an
order is made or a petition is issued or a resolution is passed for the winding
up of Independent Sales Agent’s business;

(d)                                 execution
is levied against Independent Sales Agent by creditors, debenture holders or
trustees under a floating charge;

(e)                                  Independent
Sales Agent enters into a scheme of arrangement or composition with its creditors;

(f)                                    a
receiver, manager or administrator is appointed to control the assets, or any
part of the assets, of Independent Sales Agent, or a petition for an
administration order or a petition for the appointment of a receiver is issued;

(g)                                 Independent
Sales Agent seeks protection from its creditors in a bankruptcy court or takes
advantage of any other law or procedure for the protection of creditors;

(h)                                 Independent
Sales Agent makes any assignment for the benefit of creditors; or

(i)                                     there
is a change in the beneficial interest in the shareholding of Independent Sales
Agent, or all or substantially all of the assets of Independent Sales Agent are
acquired by any other entity, or there is a change in the management of
Independent Sales Agent which has the effect of altering the effective control
of Independent Sales Agent, without the prior consent in writing of MERIAL,
which consent shall not be unreasonably withheld.

3.4                                 MERIAL
may terminate this Agreement at any time before its expiration by giving thirty
(30) days notice in writing to Independent Sales Agent in the event that any
representation or warranty given or made pursuant to this Agreement by
Independent Sales Agent shall prove to have been incorrect or untrue in any
respect.

3.5                                 Independent
Sales Agent shall strictly comply with all applicable state, federal and other
laws and regulations, including those relating to animal drugs, biologicals and
pesticides.  Independent Sales Agent
agrees that its failure to strictly comply with such laws and regulations shall
result in automatic termination of this Agreement without the need for any
prior notice by MERIAL.  In addition,
either Party may terminate this Agreement immediately by sending written notice
to the other Party if the other Party’s actions under this Agreement conflict
in any way with its obligations regarding Ethical Business Practices, as set
forth in paragraph 16.

3.6                                 Upon
the effective date of expiration or termination of this Agreement by either
Party, all Products, Other Products, Product Literature and promotional items
in the possession of Independent Sales Agent shall be (a) returned by
Independent Sales Agent to MERIAL; (b) delivered to such agent as MERIAL may
designate; or (c) disposed of according to MERIAL’s instructions.  Transportation of such Products, Other
Products, Promotional Literature and promotional items shall be at MERIAL’s
sole expense in the event this Agreement is terminated by MERIAL without
Independent Sales Agent’s default or breach under any provision of this
Agreement.  Upon termination or
expiration of this Agreement, Independent Sales Agent shall

 7
 

promptly remove from its letterhead, advertising, literature and place
of business and from all telephone and business directories and all commercial
registries of any kind, all reference to MERIAL and the Products and/or Other
Products.  Independent Sales Agent shall
not thereafter use any confusingly similar corporate name, trade name or
trademarks, tending to give the impression that any relationship continues to
exist between MERIAL and Independent Sales Agent for the Products and/or the
Other Products.

3.7                                 Merial
shall have no obligation to Independent Sales Agent arising from expiration or
termination of this Agreement, nor shall Independent Sales Agent be entitled to
compensation from Merial by reason of the expiration or termination of this
Agreement.  Expiration or termination
shall not extinguish obligations and liabilities accrued prior to expiration or
termination.  However, in the event of
expiration or termination, Merial shall not be liable for any claims of lost
future sales, profits, transaction fees or commissions, consequential damages
of any type or on account of expenditures, investments, leases or other
commitments relating to the business of goodwill of Independent Sales Agent.

4.                                       REMEDIES

INDEPENDENT SALES AGENT
EXPRESSLY ACKNOWLEGES AND AGREES THAT MERIAL SHALL NOT BE RESPONSIBLE OR LIABLE
FOR ANY LOSS OR DAMAGE (INCLUDING LOST COMMISSIONS, TRANSACTION FEES OR PROFITS
OR OTHER CONSEQUENTIAL OR INCIDENTAL LOSS OR DAMAGE) HOWEVER CAUSED (WHETHER BY
NEGLIGENCE, BREACH OF CONTRACT OR OTHERWISE) WHICH MAY BE SUFFERED OR INCURRED
OR WHICH MAY ARISE DIRECTLY OR INDIRECTLY FROM THIS AGREEMENT.  To the extent liability cannot by law be
waived in its entirety, Independent Sales Agent expressly acknowledges and
agrees that it shall not be entitled to any lost commissions, transaction fees
or profits or any other consequential or incidental damages or losses, and that
its sole remedy under this Agreement shall in no event exceed the amount of the
total commission payment generated hereunder which may be in dispute.

5.                                       ORDERS

5.1                                 All
orders will be obtained at prices and upon terms established by MERIAL and will
be submitted to MERIAL by Independent Sales Agent for acceptance.  MERIAL shall only accept an order obtained by
Independent Sales Agent which complies with the terms and conditions hereof,
and MERIAL will ship the Products and the Other Products ordered directly to
the AMA.  MERIAL will promptly provide
Independent Sales Agent with notice of any orders which fail to comport with
the terms and conditions of this Agreement and are therefore not accepted.

5.2                                 MERIAL
agrees to use reasonable efforts to fill orders obtained and submitted by the
Independent Sales Agent for the Products and/or Other Products as soon as
possible, subject to availability, the total requirements of MERIAL customers,
and production facility capacity, but shall not be liable in any way for any
loss of trade or profit or commission or other damage or cost incurred by
Independent Sales Agent in the event of any rejection of any order or any
suspension, cancellation or delay in acceptance or delivery of any order.
Independent Sales Agent shall utilize EDI as the primary means for transmitting
orders from AMAs or Veterinary Trade accounts to MERIAL and shall adhere to the
provisions outlined in the attached EDI Policy for

 8
 

Independent Sales Agents
(Schedule C, attached hereto and incorporated herein by this reference) for all
orders placed with MERIAL via EDI.

6.                                       PERFORMANCE
BY INDEPENDENT SALES AGENT

6.1                                 Independent
Sales Agent expressly acknowledges and agrees that its principal obligation is
to fully develop the market and provide excellent customer service for Products
and Other Products in the Territory.  To
this end, Independent Sales Agent agrees that its responsibilities shall
include, but shall not be limited to, the following:

(a)                                  Independent
Sales Agent shall be responsible for promoting sales growth of the Products and
Other Products in the Territory. 
Independent Sales Agent specifically agrees to:

(i)                                     Use
all reasonable efforts to have AMAs and Veterinary Trade accounts actively
endorse the Products and prominently merchandise, display and promote the full
line of Products to achieve maximum sales potential;

(ii)                                  Use
reasonable efforts to solicit orders for Products and Other Products from AMAs
and Veterinary Trade Accounts;  For
purposes of logistical efficiency and to ensure clinic inventories are
sufficient to meet consumer demand on a routine basis, Independent Sales Agent
will implement an action plan before February 15, 2007 (the “Action Plan”),
designed to elevate total orders at or in excess of 20 cartons for FRONTLINE®
and HEARTGARD® brand products.  The
Action Plan will include but not be limited to educational programs for order
entry personnel, reminder systems to help maintain focus on this initiative and
incentive programs funded from the promotional allowance designed to provide
support for achievement of specific sales objectives outlined in the Action
Plan.

(iii)                               Plan
and execute periodic market development campaigns with prior written approval
by MERIAL; vigorously support MERIAL promotional, educational, and advertising
activities to increase sales of Products and Other Products; provide AMAs and
the Veterinary Trade with agreed allowances, samples if any, point-of-sale
materials and MERIAL Product literature; maintain a trained sales force to
execute these activities and educate AMAs and Veterinary Trade accounts;
provide training for Independent Sales Agent’s key personnel, including inside
and outside sales representatives, in the proper procedure for placing AMA
orders with MERIAL and administering MERIAL’s Returned Good Policy (which
policy MERIAL reserves the right to change, modify or amend at any time without
prior notice); and assist MERIAL in providing AMAs in Independent Sales Agent’s
Territory full access to all MERIAL promotional allowances, marketing programs,
point-of-purchase materials, and Product Literature;

(iv)                              Work
with MERIAL representatives to develop a business plan to ensure that key
veterinary customers in each MERIAL sales territory, as determined by MERIAL,
implement merchandising initiatives to place such items as product displays,
point of purchase materials, consumer coupons, etc., in such designated
practices.

 9
 

(v)                                 Achieve,
within the Territory, Performance Goals as set forth in Schedule D, attached
hereto and incorporated herein by this reference.  The terms of these Performance Goals shall be
established by MERIAL for a given year by March 1 of that year preceding the
year this Agreement is in effect.  If
MERIAL does not establish the Performance Goals for a given year by March 1 of
that year, such year’s Performance Goals shall be equal to one hundred twenty
percent (120%) of the prior year’s Performance Goals, respectively.  Independent Sales Agent will assign sales
goals at the MERIAL sales territory level for total sales by Product and Other
Product and will review sales performance by Product and Other Product category
on a quarterly basis to ensure achievement of Performance Goals.

(vi)                              Independent
Sales Agent will assign sales goals at the territory level for total sales by
product and will review sales performance by product category on a quarterly
basis to ensure achievement of performance goals.

(vii)                           Independent
Sales Agent shall provide adequate sales representation to contact and solicit
orders from all AMAs and Veterinary Trade accounts in the Territory.  Independent Sales Agent shall submit orders
within two hours of receipt from the AMA or Veterinary Trade account through
EDI or such other communications method designated and scheduled by MERIAL.

(b)                                 Independent
Sales Agent shall submit to MERIAL, via EDI in accordance with Schedule C
hereof, a current roster of its sales agent representatives at least once each
quarter.

(c)                                  Independent
Sales Agent shall educate and train its sales personnel with material and
courses supplied by MERIAL and/or ensure their attendance at MERIAL training
sessions to ensure a satisfactory level of knowledge about Products and Other
Products and cooperate with MERIAL to offer suitable training and education to
the AMAs and Veterinary Trade accounts. 
MERIAL shall cover all reasonable expenses for those sales personnel of
Independent Sales Agent who attend such training, including reasonable
pre-approved travel expenses.

(d)                                 Subject
to the requirements of paragraph 6.1(e) hereof, Independent Sales Agent will
distinguish MERIAL Products and Other Products from other products it carries
by:

·                  conveying to Independent Sales Agent’s
sales and marketing organizations the strategic importance of MERIAL and its
Products and Other Products;

·                  recommending the Products and Other
Products as the preferred products in their respective market categories to
AMAs and the Veterinary Trade;

·                  offering sales representatives
financial incentives to sell Products and Other Products, as designated in
Schedule B hereto, that are comparable or greater than the incentives offered
by Independent Sales Agent to sell any other supplier’s products that compete
directly with Products or Other Products;

·                  permitting no negative selling
against any Products or Other Products;

·                  making
no affirmative efforts to shift sales of Products or Other Products to
competing products;

 10

·                  regularly featuring Products and
Other Products in daily detailing and sales campaigns and mailings;

·                  utilizing MERIAL sales and technical
support to increase and maintain sales support;

·                  providing MERIAL up to quarterly
access to its sales personnel for Product, Other Product and sales training;

·                  providing premium space allocation in
publications for Product and Other Product advertisements; and

·                  providing
to MERIAL preferred participation in regional and national sales meetings.

(e)                                  Other
than for those Products manufactured and/or marketed by MERIAL, neither
Independent Sales Agent nor its Affiliates shall, directly or indirectly,
manufacture, distribute, wholesale, take orders for (including the transmission
of uncompensated EDI orders), market, sell, promote, represent, broker or
provide services relating to: (i) any ivermectin product(s) or other product
used for the treatment and/or control and/or prevention of heartworms or
internal parasites or both for cats and/or for dogs which is administered less
frequently than daily or (ii) any product used or administered less frequently
than weekly for the treatment and/or control and/or prevention of fleas or
ticks or both.  Notwithstanding the
foregoing to the contrary, the restrictions on Independent Sales Agent pursuant
to this Section 6.1(e) shall not apply to over-the-counter products (“OTC
Products”) which (a) were appropriately registered prior to January 1, 2005 and
(b) contain the active ingredients amitraz, diazinon, carbaryl,
organophosphates, pyrethrin, permethrins or permethrin derivatives, (s)
methoprene, and pyriproxyfen.  If
Independent Sales Agent is interested in selling OTC products registered
subsequent to 2004, it may submit a written request to MERIAL for approval,
which approval may be withheld within MERIAL’s sole discretion.  MERIAL shall provide Independent Sales Agent
with its approval or denial of Independent Sales Agent’s written request within
three (3) business days (the “Approval Period”) of MERIAL’s receipt
thereof.  If such approval or denial is
not received by Independent Sales Agent within the Approval Period, MERIAL’s
approval shall be deemed granted.  In the
event that Independent Sales Agent violates the terms of this paragraph 6.1(e)
and manufactures, wholesales, markets, promotes, brokers, represents, sells,
distributes or provides services relating to the types of products set forth
herein at (i) or (ii) and not supplied or manufactured by MERIAL, MERIAL
reserves the right to immediately terminate this Agreement, without giving the
notice required by Paragraph 3.2, and permanently withhold all commissions then
due and owing to Independent Sales Agent by MERIAL.  MERIAL agrees that it will not accept EDI
orders for Products from non-named sales agents with whom MERIAL does not have
a valid Independent Sales Agent agreement.

(f)                                    Ensure
compliance with the Robinson-Patman Act and all other applicable laws.  Independent Sales Agent agrees that it shall
not rebate or otherwise provide any part of the commission payment, either
directly or indirectly, to any AMA or Veterinary Trade account.

(g)                                 Arrange
for MERIAL representatives to meet and make sales calls with Independent Sales
Agent’s representatives when needed to support MERIAL marketing and sales
promotions.

 11
 

(h)                                 Make
no representations or warranties with respect to Products or Other Products,
other than such representations issued or approved in writing by MERIAL.  Independent Sales Agent will not in any way
jeopardize the good will and reputation of MERIAL or its Products or Other
Products.

(i)                                     Immediately
notify MERIAL upon being made aware of any adverse reaction, injury, damage,
claim or lawsuit involving a Product or Other Product, whether or not directly
attributable to the Product or Other Product. 
Independent Sales Agent, at the request and expense of MERIAL, shall do
all such things as may be reasonably required to assist MERIAL in resolving
such matters.

(j)                                     Indemnify
and hold MERIAL, its parent companies, officers, directors, employees and
representatives harmless from and against all expenses, claims, damages,
losses, liabilities or money judgments, including legal fees, incurred by
MERIAL arising out of any act or omission by Independent Sales Agent including
from the negligence or fault of Independent Sales Agent, from Independent Sales
Agent’s advertising or promotion of the Products or Other Products, or
Independent Sales Agent’s failure to comply with the terms of this Agreement,
including promotion of the Products or Other Products outside the scope of MERIAL’s
safety and efficacy claims for the Products or Other Products, as the case may
be, except to the extent that said claim arises out of any act or omission of
MERIAL.

(k)                                  Independent
Sales Agent shall not in any way jeopardize the good will and reputation of
MERIAL or Products or Other Products, and will have no authority to bind MERIAL
to any act or representation unless specifically so authorized in writing.  Independent Sales Agent shall indemnify and
hold MERIAL harmless from and against all claims arising out of any breach of
this subsection.

(l)                                     Independent
Sales Agent records, which shall include but not be limited to accounting
records, customer records, customer purchase orders and invoices, written
policies and procedures, reports, correspondence, memoranda or any other
documentation relating to the marketing and sale of the Products or Other
Products or any other matter relating to this Agreement, shall be open to
inspection and subject to audit and/or reproduction, during normal business working
hours, by MERIAL or its authorized representative to the extent necessary to
adequately evaluate Sales Agent Representative commissions, transaction fees or
customer information submitted by Independent Sales Agent or desirable for any
other valid business purpose.  For the
purpose of such audits, inspections, examinations and evaluations, MERIAL or
its authorized representative shall have access to said records beginning on
the Commencement Date and continuing for five (5) years following the termination
or expiration of this Agreement and any renewal thereof.

(m)                               Provide
MERIAL with timely, complete and accurate data on market conditions in
Independent Sales Agent’s Territory.

7.                                       PERFORMANCE
BY MERIAL

7.1                                 MERIAL
agrees that it shall:

 12
 

(a)                                  Use
reasonable efforts to fill orders submitted by Independent Sales Agents as soon
as possible, giving consideration to the quantity of the Products available at
the time, the total requirements of MERIAL customers and the capacity of
production facilities.

(b)                                 Be
responsible for all collection actions and expenses.  Independent Sales Agent will assist in
obtaining paymentfrom AMAs and Veterinary Trade
accounts with overdue invoices when requested to do so by MERIAL.

(c)                                  Pay
Independent Sales Agent, as full and total compensation for all services
rendered under this Agreement, certain commissions for the sales of Products as
outlined in Schedule B and commissions or transaction fees for the sale of
Other Products as provided for in paragraph 2.2 hereof.  At all times, commissions and transaction
fees will be calculated on Net Sales.  An
earnings statement reporting invoiced sales, Net Sales, and earnings (including
commissions and transaction fees) will be provided monthly to Independent Sales
Agent.  Independent Sales Agent also
expressly acknowledges and agrees that MERIAL has the right to apply
commissions and transaction fees earned by Independent Sales Agent against any
amounts past due owed by Independent Sales Agent to MERIAL hereunder or under
any distributor agreement with MERIAL.

(d)                                 Make
available for the purposes of securing sales from AMAs and Veterinary Trade
accounts all national and/or regional deals and sales promotion programs
designed for AMAs and applicable to Products.

(e)                                  Work
with Independent Sales Agent to conduct business planning to increase sales
opportunities and results and to maximize the use of available resources for
MERIAL Products.

(f)                                    Increase
awareness and usage of Products in Independent Sales Agent’s Territory by means
that MERIAL determines to be reasonable, which may include:

i.                            Conducting
national and regional consumer marketing and promotional campaigns.

ii.                           Conducting
sales promotions, disease and product awareness campaigns, and client education
programs for AMAs and Veterinary Trade accounts.

iii.                        Providing
marketing assistance programs to develop professional promotional and
educational programs, workshops, and seminars as mutually agreed between MERIAL
and Independent Sales Agent.

iv.                       Providing
product and skills training to Independent Sales Agent which may include the
following:

·                  sales training
for Independent Sales Agent’s field and telemarketing sales organizations;

·                  sales management
training for Independent Sales Agent’s managers;

·                  technical
training in the Products and the diseases which are controlled or prevented by
them; and, at Independent Sales Agent’s specific request, technical training in
the vaccines included as Other

 13
 

Products and the diseases which are controlled, treated, or prevented
by them;

·                  conducting meetings
to inform Independent Sales Agent’s sales force about sales promotions and the
use of campaign detail materials, sales tools, and point-of-purchase
merchandising aids;

·                  participating in
account presentations to AMAs; and

·                  handling
customer complaints and inquiries and providing consultations to promote and
maintain customer satisfaction.

(g)                                 Indemnify
and hold Independent Sales Agent harmless from and against any and all claims,
damages, losses, and liabilities directly caused by the use of Products or
Other Products, except to the extent that said claim arises out of any
statement, act, or omission by Independent Sales Agent.

7.2                                 MERIAL
shall maintain a MERIAL territory-based Sales Agent Representative trip program
as described in Schedule B.  The value,
duration, and location of any such trip shall be left to the sole discretion of
MERIAL.

8.                                       REPRESENTATIONS
AND WARRANTIES OF INDEPENDENT SALES AGENT

8.1                                 Independent
Sales Agent hereby represents and warrants to MERIAL as follows:

(a)                            Independent
Sales Agent is an entity duly organized and validly existing under the laws of
the State of Idaho and has full power and authority to enter into and perform
its obligations under this Agreement.

(b)                           Independent
Sales Agent shall maintain a business establishment, facilities and resources,
and sales staff adequate to handle all sales, service and promotion obligations
required of Independent Sales Agent under this Agreement.

9.                                       RESTRICTION

9.1                                 Independent
Sales Agent expressly acknowledges and agrees that MERIAL’s exclusive property
(the “Property”) includes:

(a)                                  all
trademarks, including those listed in Schedule A, Schedule E attached hereto,
and all trade dress and tradenames now or hereinafter associated with Products
and Other Products, registered or unregistered;

(b)                                 formulations
of all Products and Other Products; and

(c)                                  all
MERIAL logos, labels, package designs, literature, promotional pieces, data
sheets, brochures and other printed matter now or hereafter associated with
Products and Other Products.

9.2                                 Independent
Sales Agent is authorized on a non-exclusive basis to use the Property solely
in association with the marketing, promotion and sale of the corresponding
Products and/or Other Products, solely in the Territory, and solely during the
this Agreement, so long as Independent Sales Agent uses the Property in
accordance with MERIAL’s standards, specifications, and instructions.  Independent Sales Agent shall afford MERIAL a
reasonable opportunity to inspect and monitor Independent Sales Agent’s use of
the Property.  All use of the Property
shall clearly identify MERIAL as the owner of such Property and shall meet all
requirements of the United States

 14
 

Patent and Trademark
Office and any other applicable agency. 
This authorization of use does not constitute a grant to Independent
Sales Agent of any property right or interest in any Property.  Independent Sales Agent will have no right to
delegate or assign rights granted to it under this, or any other, provision hereof.  Independent Sales Agent shall use the
Property only to the extent necessary to enable Independent Sales Agent to
carry out its obligations under this Agreement. 
Independent Sales Agent specifically agrees that (i) during this
Agreement, it shall not formulate, produce, distribute, wholesale or sell any
competitive products as specified in paragraph 6.1(e); and (ii) after the term
of this Agreement, it shall not formulate, produce, distribute, wholesale, sell
or use within the Territory products, formulas, or trademarks embodying or identified
with the Property.  Independent Sales
Agent represents that it has not sought or obtained and agrees not to seek or
obtain, in the Territory or elsewhere, any trademark or copyright registration
or any patent embodying the Property and it further agrees to discontinue all
use of the Property after termination or expiration of this Agreement.

9.3                                 Independent
Sales Agent agrees that it will not register or use any trademark which, in the
opinion of MERIAL, is confusingly similar to the Trademarks or to any other
trademarks registered or used by MERIAL.

9.4                                 Independent
Sales Agent agrees to use its reasonable efforts to prevent other persons from
seeking or obtaining any patents, trademarks or copyrights embodying the
Property.  Independent Sales Agent agrees
to notify MERIAL immediately of any potential infringement or imitation of the
Property which comes to the attention of Independent Sales Agent during the
term of this Agreement.  Independent
Sales Agent will render all reasonable assistance sought by MERIAL in
connection with any action taken by MERIAL to protect or enforce its
Trademarks.  All decisions about such
action, including the determination whether to initiate action or to settle,
will be under the sole control of MERIAL. 
MERIAL will not be liable for any attorney’s fees or expenses unless
Independent Sales Agent incurs such fees and expenses at the written request of
MERIAL and only to the extent that MERIAL determines such fees to be
reasonable.

9.5                                 Independent
Sales Agent may not use the Property as a part of its trade name, unless such
use is expressly authorized by MERIAL in writing, and shall never use it in a
manner to indicate that Independent Sales Agent is anything other than an
independent contractor, as distinguished from an agent or employee of MERIAL,
and shall never use such Property in a manner detrimental to the image or
reputation of MERIAL or otherwise harmful to MERIAL interests.

9.6                                 Independent
Sales Agent agrees that all uses of Trademarks and any enhancement in the value
of Property, in the Territory or elsewhere, which result from efforts of
Independent Sales Agent, shall inure to MERIAL’s sole benefit.

10.                                 ASSIGNMENT

10.1                           Independent
Sales Agent shall not, without the written consent of MERIAL, directly or
indirectly in any manner assign, transfer, encumber or subcontract its rights
and obligations under this Agreement to any third party.

10.2                           MERIAL
may assign, transfer or subcontract its rights and obligations hereunder
without the approval of Independent Sales Agent.

 15
 

11.                                 STATUS
OF INDEPENDENT SALES AGENT/TAXES

Independent Sales Agent is not a joint or co-venturer,
partner, employee or agent of MERIAL and does not have any power or authority,
directly or indirectly or through its directors, employees or agents, to bind
MERIAL to any agreement with any person. 
Independent Sales Agent agrees that it shall comply with all relevant
laws relating to applicable payroll taxes and any other required taxes.  Independent Sales Agent shall indemnify
MERIAL against any and all claims arising from Independent Sales Agent’s
failure to pay any of said expenses, salaries or taxes, or to comply with any
laws relating to employment.

12.                                 GOVERNING
LAW

This Agreement shall be governed by, interpreted,
construed, and the respective rights of the parties hereto determined and all
claims and disputes, whether in tort, contract or otherwise, resolved according
to the laws of the State of Georgia notwithstanding any conflict of law
principles to the contrary.  In the event
of any controversy or claim arising out of or relating to this Agreement,
performance hereunder, termination hereof, or relationship created hereby, each
party submits to the exclusive jurisdiction of the courts of Georgia for the
purposes of any suit, action or other proceeding arising out of this Agreement
or transactions contemplated hereby. 
Each party further agrees that service of any process, summons, notice
or document by U.S. registered mail to such party’s respective address set
forth in Article 13.2 shall be effective service of process for any action,
suit or proceeding in Georgia with respect to matters relating to this
Agreement, and hereby waives any objection to the laying of venue in the courts
of Georgia and that any such action was brought in an inconvenient forum.  In the event of any dispute arising from this
Agreement or any acts of any party, the prevailing party in such dispute shall
be entitled to recover reasonable costs and attorneys’ fees.  Notwithstanding the foregoing, MERIAL shall
have the right to seek interim injunctive relief from any court of competent
jurisdiction wherever situated in the event of a threatened disclosure in
violation of this Agreement to prevent such disclosure pending resolution of
the merits of the dispute.  This
paragraph shall survive the termination of this Agreement.

13.                                 NOTICES

13.1                           A
notice, approval, direction, consent, offer, demand or other communication in
connection with this Agreement shall be in writing and shall be signed by an
authorized officer of the relevant Party and given to the recipient Party
either by (a) hand delivery; (b) registered or certified mail, return receipt
requested; or (c) express mail capable of being tracked.

13.2                           Deliveries
made, and mail sent, pursuant to paragraph 13.1 shall be to the address of the
recipient Party set out below, and in each case, shall be marked for the
attention of the person specified below in relation to the recipient Party:

	
  

  	
  To MERIAL:

  	
  Executive Director of Sales, Pets U.S.

  
	
   

  	
  Address:

  	
  Merial Limited

  
	
   

  	
   

  	
  3239 Satellite Boulevard

  
	
   

  	
   

  	
  Duluth, Georgia 30096-4640

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
  (678) 638-8956

  

 

 16
 

 

	
  

  	
  With a copy to:

  	
  General Counsel, North America

  
	
   

  	
   

  	
  Merial Limited

  
	
   

  	
   

  	
  3239 Satellite
  Boulevard

  
	
   

  	
   

  	
  Duluth, Georgia
  30096-4640

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
  (678) 638-3350

  
	
   

  	
   

  	
   

  
	
   

  	
  To Independent Sales Agent:

  	
  Mr. James Cleary

  
	
   

  	
   

  	
  651 S. Stratford
  Drive

  
	
   

  	
   

  	
  Meridian, ID
  83642

  
	
   

  	
   

  	
   

  
	
   

  	
  Phone Number:

  	
  1-800-762-4800

  
				

13.3                           A Party
may from time to time change any of the details specified in paragraph 13.2 by
giving not less than ten (10) days prior written notice to the other Party.

14.                                 MISCELLANEOUS

14.1                           This
Agreement, together with any referenced attachments and amendments, embodies
the entire agreement of the Parties in relation to the subject matter of sales
agency for Products listed in Schedule A and Other Products listed in Schedule
E, and supersedes all previous agreements, arrangements and understandings,
verbal or otherwise, in relation thereto. 
No variation, modification or waiver of any provision of this Agreement
nor consent to any departure by any Party therefrom, shall be in any event of
any force or effect unless the same shall be confirmed in writing signed by the
Parties, and then such variation, modification, waiver or consent shall be
effective only to the extent to which it may be made or given.  The Agreement may be amended only in writing
signed by both Parties.

14.2                           No
waiver of any of the provisions of this Agreement, including any term,
condition or provision set forth in any schedule attached hereto, or of any
breach thereof will establish a precedent for any other instance or with
respect to any other provision. No failure, delay, relaxation or indulgence of
any Party in exercising any power or right conferred upon such Party in the
terms of this Agreement shall operate as a waiver of such power or right, nor
shall any single exercise of any such power or right preclude any other or
future exercise thereof, or the exercise of any other power or right under this
Agreement.

14.3                           If any
provisions of this Agreement shall be deemed invalid and not enforceable in
accordance with their terms, all other provisions which are self-sustaining and
capable of separate enforcement without regard to the invalid provisions, shall
continue to be valid and enforceable in accordance with their terms.

14.4                           All
information and materials relating to MERIAL’s sales goals, Independent Sales
Agent’s sales goals, AMA customer databases, AMA sales volume and Product and
Other Product formulation usage information and general AMA account
information, as it pertains to transactions between MERIAL and AMAs and
Veterinary Trade Accounts and the sale of Products and Other Products, is the
sole and confidential property of MERIAL and may not ever be disclosed by
Independent Sales Agent to any third party without the prior written consent of
MERIAL.  Neither party shall at any time
during the Term of this Agreement or for a period of five (5) years following
the expiration or termination of this Agreement disclose to any third party

 17
 

Confidential Information,
as defined in paragraph 14.6, it has gained through its association with the
other.

14.5                           Independent
Sales Agent acknowledges that all sales data, market analysis, and customer
information provided by Independent Sales Agent to MERIAL under this Agreement
shall become the sole property of MERIAL and is deemed confidential and may not
be disclosed by Independent Sales Agent to any third party without the prior
written consent of MERIAL.  Independent
Sales Agent further acknowledges that MERIAL may use any such information for
sales and promotional purposes, including, but not limited to, establishing a
database for direct marketing purposes, and Independent Sales Agent hereby
certifies that it has the right to convey such information to MERIAL.

14.6                           Both
parties shall use Confidential Information for the sole purpose of fulfilling
the obligations of this Agreement.  “Confidential
Information,” as used in this Agreement, shall mean all information,
documentation, and devices disclosed or made available by one party to the
other, including but not limited to, the existence of discussions between the
parties, business plans, present and future products or formulas, trademarks,
policies, procedures, processes, manufacturing or distribution plans, whether
written or oral.  No rights or licenses,
expressed or implied, are hereby granted to either Party under any patents,
copyrights, trademarks, service marks or trade secrets belonging to the other
as a result of or related to this Agreement. 
Both Parties agree to return any and all Confidential Information, and
all other records and copies thereof, to the other upon the termination or
expiration of this Agreement.  The
obligations of this paragraph shall not apply to such information which:

(a)                          at the
time of the initial disclosure was demonstrably already in the possession of
the receiving Party without any applicable obligation of confidentiality; or

(b)                            at the
time of disclosure is, or at some time thereafter becomes, through no fault of
the receiving party, public knowledge, or

(c)                          is
required by law to be disclosed to a public body or regulatory agency, in which
case the party being required to make the disclosure shall promptly give notice
to the other party so that the other party shall have time to oppose such
disclosure.

14.7                           The
provisions of paragraphs 2.6, 3.2, 3.6, 3.7, 4, 6.1(j) 6.1(l), 6.1(k), 7.1(g),
9.1-9.6, 11, 12, 14.4, 14.5 and 14.6 shall survive the termination or
expiration of this Agreement.

15.                                 FORCE
MAJEURE

Sales may be suspended or canceled by MERIAL in the
event of Act of God, war, riot, fire, explosion, accident, flood, sabotage,
inability to obtain fuel, power, raw materials, labor, containers or
transportation facilities, governmental laws, regulations, orders or action,
breakage or failure of machinery or apparatus, national defense requirements or
any other event beyond the reasonable control of MERIAL or in the event of
labor trouble, strike, lockout or injunction (whether or not such labor event
is within the reasonable control of MERIAL), which event prevents the
manufacture, shipment or acceptance of Products.  Deliveries suspended under this paragraph 15
shall be canceled without liability, but this Agreement shall otherwise remain
unaffected.

 18
 

16.                                 ETHICAL
BUSINESS PRACTICES

16.1                           Practices

MERIAL and Independent Sales Agent shall adhere to
business practices in connection with this Agreement which are in accordance
with the letter and spirit of applicable laws and ethical principles.
Independent Sales Agent and MERIAL represent and warrant to the other that all
transactions in connection with this Agreement will be accurately reflected in
their respective books and records, and that no funds or other assets will be
paid directly or indirectly to government officials (or persons acting on their
behalf) for the purpose of influencing government decisions or actions with
respect to Products or Other Products. 
Violation of this policy will result in the immediate termination of this
Agreement.

16.2                           Employees

No employee of MERIAL
will have authority to give any direction, either written or oral, relating to
the making of any commitment by Independent Sales Agent or its agents to any
third party in violation of the terms of this paragraph.

17.                                 ANNOUNCEMENTS

Except as required by law, no announcements will be
made in connection with the subject matter of this Agreement, by or on behalf
of Independent Sales Agent without the prior approval of MERIAL.  Such approval will not be unreasonably with
held or delayed.

18.                                 COUNTERPARTS

18.1                           This
Agreement may be executed in any number of counterparts, and by the Parties in
separate counterparts, but shall not be effective until each party has executed
at least one counterpart.

18.2                           Each
counterpart shall constitute an original of this Agreement, but all the
counterparts shall together constitute the same instrument.

[Signatures
on following page(s)]

 19
 

IN WITNESS WHEREOF
the parties hereto have duly executed this Agreement.

	
  MERIAL LIMITED

  	
   

  	
  MWI Veterinary Supply Co.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Thomas
  Zerzan

  	
   

  	
  By:

  	
  /s/ James Cleary

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Thomas Zerzan

  	
   

  	
  Name:

  	
  James Cleary

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Head of Merial U.S.

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  12-05-06

  	
   

  	
  Date:

  	
  Nov. 16, 2006

  

 

 20

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