Document:

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                                                                   EXHIBIT 10.44

                              CALLAWAY GOLF COMPANY
                             1996 STOCK OPTION PLAN
                      (As Amended and Restated May 3, 2000)

SECTION 1. PURPOSE OF THE PLAN

     This 1996 Stock Option Plan (the "Plan") of Callaway Golf Company, a
Delaware corporation (the "Company"), is intended as a means whereby the Company
may provide for grants of stock options to employees (including officers),
consultants and advisors of the Company and its subsidiaries and affiliates,
thereby helping to retain and motivate such individuals, and to encourage the
judgment, initiative and efforts of such individuals by further aligning their
interests with those of the shareholders of the Company.

SECTION 2. ADMINISTRATION OF THE PLAN

     2.1 Administration. The Plan shall be administered by the Board of
         --------------
Directors of the Company (the "Board") or, in the discretion of the Board, a
committee appointed thereby (the "Committee"). All expenses and liabilities
incurred by the Board or the Committee in the administration of the Plan shall
be borne by the Company. The Board or the Committee may employ attorneys,
consultants, accountants, agents, brokers or other persons. If no persons are
designated by the Board to serve on the Committee, the Plan shall be
administered by the Board and all references herein to the Committee shall refer
to the Board. Unless otherwise provided by the Board: (a) with respect to any
Options (as defined in Section 5.1 below) for which the Committee determines
                       -----------
that it is necessary or desirable for the grant thereof to be exempt under Rule
16b-3 of the Securities Exchange Act of 1934 (the "Exchange Act"), membership of
the Committee shall conform to the requirements of that Rule to make grants or
awards that are exempt from the operation of Exchange Act Section 16(6), and (b)
with respect to any Options that are intended to qualify as "performance based
compensation" under Section 162(m) of the Internal Revenue Code (the "Code"),
membership of the Committee shall conform to the requirements of Code Section
162(m) and the Treasury regulations thereunder.

     2.2 Determinations. The Committee shall have full and exclusive power to
         --------------
construe and interpret the Plan, to determine and designate the class or classes
of Eligible Persons (as defined in Section 4 below) of the Company and of its
                                   ---------
subsidiaries or affiliates who are eligible to participate in the Plan and any
other criteria that must be satisfied in order for an Eligible Person to
participate in the Plan, to determine the terms of Options, subject to the
requirements and provisions of the Plan, and generally to determine answers to
any and all questions arising under the Plan. All decisions, determinations and
interpretations by the Committee regarding the Plan shall be final and binding
on all Eligible Persons and Participants (as defined in Section 4 below). The
                                                        ---------
Committee shall consider such factors as it deems relevant, in its sole and
absolute discretion, to making such decisions, determinations and
interpretations, including, without limitation, the recommendations or advice of
any
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officer of the Company or Eligible Person and such attorneys, consultants and
accountants as it may select.

     2.3 Powers. Subject to the express provisions of the Plan, the Committee
         ------
shall be authorized and empowered to do all things necessary or desirable in
connection with the administration of the Plan with respect to the Options over
which the Committee has authority, including, without limitation, the following:

         (a) to prescribe, amend and rescind rules and regulations relating to
     the Plan and to define terms not otherwise defined herein;

         (b) to determine which persons are Eligible Persons, to which Eligible
     Persons, if any, Options shall be granted hereunder and the timing of any
     such Options;

         (c) to determine the number of Shares (as defined in Section 3.1
                                                              -----------
     below) that will be subject to any Option and the exercise price of such
     Shares;

         (d) to prescribe and amend the terms of the Option Agreements (as
     defined in Section 5.1 below), which need not be identical;
                -----------

         (e) to determine whether, and the extent to which, adjustments are
     required pursuant to Section 7.2;
                          -----------

         (f) to interpret and construe the Plan, any rules and regulations
     under the Plan and the terms and conditions of any Option granted
     hereunder, and to make exceptions to any such provisions in good faith and
     for the benefit of the Company; and

         (g) to make all other determinations deemed necessary or advisable for
     the administration of the Plan.

SECTION 3. STOCK SUBJECT TO THE PLAN

     3.1 Aggregate Limits. Subject to adjustment as provided in Section 7.2, at
         ----------------                                       -----------
any time, the aggregate number of shares of the Company's Common Stock
("Shares") issued and issuable pursuant to all Options (including all ISOs (as
defined in Section 5.3 below)) granted under the Plan shall not exceed
           -----------
9,000,000. The Shares subject to the Plan may be either Shares reacquired by the
Company (including Shares repurchased in the open market or otherwise) or
authorized but unissued Shares.

     3.2 Code Section 162(m) Limit. The maximum number of Shares with respect to
         -------------------------
which Options may be granted under the Plan during any calendar year to a key
employee shall not exceed 1,000,000. Notwithstanding anything to the contrary in
the Plan, the foregoing limitation (a) shall not apply if it is not required in
order for the compensation attributable to Options under the Plan to qualify as
"performance based compensation"

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described in Code Section 162(m) and the Treasury regulations thereunder, and
(b) shall be subject to adjustment under Section 7.2 only to the extent the
                                         -----------
Committee determines that such adjustment would not affect the status of
compensation attributable to Options hereunder as "performance based
compensation" described in Code Section 162(m) and the Treasury regulations
thereunder.

     3.3 ISO Limits. The aggregate number of Shares issued and issuable pursuant
         ----------
to all ISOs (as defined in Section 5.3) granted under the Plan shall not exceed
                           -----------
9,000,000. Such maximum number does not include the number of Shares subject to
the unexercised portion of any ISO granted under the Plan that expires or is
terminated. Notwithstanding anything to the contrary in the Plan, such aggregate
number of Shares shall be subject to adjustment under Section 7.2 only to the
                                                      -----------
extent that such adjustment will not affect the status of any ISO granted under
the Plan.

     3.4 Calculating Plan Limits. For purposes of Section 3.1,
         -----------------------                  -----------

          (a) The aggregate number of Shares issued under the Plan at any time
     shall equal only the number of Shares actually issued upon exercise or
     settlement of an Option and not returned to the Company upon cancellation,
     expiration or forfeiture of an Option or in payment or satisfaction of the
     purchase price, exercise price or tax withholding obligation of an Option;
     and

          (b) In the event that any outstanding Option under the Plan expires by
     reason of lapse of time or is otherwise terminated without exercise for any
     reason, then the Shares subject to any such Option that have not been
     issued upon exercise of the Option shall again become available in the pool
     of Shares for which Options may be granted under the Plan; provided,
     however, that in the event that the Committee determines that it is
     appropriate to condition the grant of a new Option to a Participant upon
     the surrender by such Participant of a previously issued unexercised Option
     having a higher exercise price than the proposed new Option, then the
     Shares underlying the old Option shall not again become available in the
     pool of Shares for which Options may be granted under the Plan unless and
     until such new Option expires by reason of lapse of time or is otherwise
     terminated without exercise for any reason other than in connection with a
     similar conditional re-grant.

SECTION 4. PERSONS ELIGIBLE UNDER THE PLAN

     Any person who is an employee, consultant or advisor of the Company or any
of its subsidiaries or affiliates (an "Eligible Person") may be eligible to be
considered for the grant of Options hereunder, as determined by the Committee in
its discretion; provided, however, that no director of the Company who is not
also an employee of the Company shall be eligible to receive any Option
hereunder. A "Participant" is any Eligible Person to whom an Option has been
granted and any person (including any estate) to whom an Option has been
assigned or transferred pursuant to Section 6.1.
                                    -----------

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SECTION 5. STOCK OPTION GRANTS

     5.1 Authority to Grant Options. An "Option" is a right to purchase a number
         --------------------------
of Shares at such exercise price, at such times, and on such other terms and
conditions as are specified in the agreement evidencing the Option (the "Option
Agreement"). The Committee, on behalf of the Company, is authorized under the
Plan to grant an Option or provide for the grant of an Option, either
automatically or in the discretion of the Committee, upon the occurrence of
specified events, including, without limitation, the achievement of Qualifying
Performance Criteria (as defined below) or the satisfaction of an event or
condition within the control of the recipient of the Option or within the
control of others.

     For purposes of the Plan, the term "Qualifying Performance Criteria" shall
mean any one or more performance criteria, either individually, alternatively or
in any combination, applied to either the Company as a whole or to a business
unit or subsidiary, either individually, alternatively or in any combination,
and measured either on an absolute basis or relative to a pre-established
target, to previous years' results or to a designated comparison group, in each
case as specified by the Committee in the Option Agreement. For this purpose,
such performance criteria may include (a) cash flow, (b) earnings per share
(including earnings before interest, taxes and amortization), (c) return on
equity, (d) total shareholder return, (e) return on capital, (f) return on
assets or net assets, (g) income or net income, (h) operating income or net
operating income, (i) operating profit or net operating profit, (j) operating
margin, (k) return on operating revenue, (l) market share or circulation, and
(m) any similar performance criteria.

     5.2 Option Agreement. Each Option Agreement shall contain provisions
         ----------------
regarding (a) the number of Shares that may be issued upon exercise of the
Option, (b) the purchase price of the Shares, (c) the term of the Option, (d)
such terms and conditions of exercise as may be determined from time to time by
the Committee, (e) restrictions on the transfer of the Option and forfeiture
provisions, and (f) such further terms and conditions, in each case not
inconsistent with the Plan, as may be determined from time to time by the
Committee.

     5.3 ISOs and Nonqualified Options. Options that are intended to qualify as
         -----------------------------
Incentive Stock Options ("ISOs") pursuant to Code Section 422 and Options that
are not intended to qualify as ISOs ("Nonqualified Options") may be granted
under this Section 5 as the Committee in its discretion shall determine. Option
           ---------
Agreements evidencing ISOs shall contain such terms and conditions as may be
necessary to comply with the applicable provisions of Section 422 of the Code.

     5.4 Option Price. The exercise price per Share of each Option granted under
         ------------
the Plan shall be not less than the Fair Market Value (as defined below) on the
date the Option is granted.

     Unless the Committee shall specify otherwise, for purposes of the Plan, the
"Fair Market Value" of a Share as of a particular date shall be: (a) if the
Shares are of a class listed on

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an established stock exchange or exchanges (including, for this purpose, The
Nasdaq National Market), the closing sale price of the Share quoted for such
date in the Transactions Index of each such exchange, as published in The Wall
Street Journal, or, if no sale price was quoted in any such Index for such date,
then as of the next preceding date on which such a sale price was quoted; or (b)
if the Shares are of a class not then listed on an exchange, the average of the
closing bid and asked prices per share for the Share in the over-the-counter
market as quoted on the NASDAQ system on such date; or (c) if the Shares are of
a class not then listed on an exchange or quoted in the over-the-counter market,
an amount determined in good faith by the Committee; provided, however, that
when appropriate, the Committee in determining the Fair Market Value may take
into account such other factors as it may deem appropriate under the
circumstances. Notwithstanding the foregoing, the Fair Market Value for purposes
of grants of ISOs shall be determined in compliance with applicable provisions
of the Code.

     5.5 Termination of Options. Unless determined otherwise by the Committee in
         ----------------------
its sole discretion, Options shall expire on the earliest of (a) one (1) year
from the date on which the Participant ceases to be an Eligible Person of the
Company for any reason other than death; (b) one (1) year from the date of the
Participant's death; or (c) with respect to each installment of such Option, the
fifth anniversary of the vesting date of such installment. If a Participant who
is an employee of the Company (or of a subsidiary or affiliated entity) ceases
for any reason to be such an employee, that portion of the Option that has not
yet vested shall terminate, unless the Committee accelerates the vesting
schedule in its sole discretion (in which case, the Committee may impose
whatever conditions it considers appropriate on the accelerated portion).
Options granted to a Participant who is not such an employee may be made subject
to such other termination provisions as determined appropriate by the Committee.

     5.6 Option Exercise.
         ---------------

         (a) Partial Exercise. Unless otherwise provided by the Committee, an
     exercisable Option may be exercised in whole or in part.

         (b) Manner of Exercise. All or a portion of an exercisable Option shall
     be deemed exercised upon delivery to the Secretary of the Company at the
     Company's principal office all of the following: (i) notice of exercise
     specifying the number of Shares to be purchased and signed by the
     Participant, (ii) full payment of the exercise price for such number of
     Shares, (iii) such representations and documents as the Committee, in its
     sole discretion, deems necessary or advisable to effect compliance with all
     applicable provisions of the Securities Act of 1933, as amended, and any
     other federal, state or foreign securities laws or regulations, (iv) in the
     event that the Option shall be exercised pursuant to Section 6.1 by any
                                                          -----------
     person or persons other than the Eligible Person, appropriate proof of the
     right of such person or persons to exercise the Option, and (v) such
     representations and documents as the Committee, in its sole discretion,
     deems necessary or advisable to provide for the tax withholding pursuant to
     Section 9. Shares shall be registered in the name of the Participant as
     ---------
     soon as administratively practicable after exercise of any Option, subject
     to reasonable
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delays and to delays beyond the reasonable control of the Company such as but
not limited to completion of registration of said Shares with the Securities and
Exchange Commission (the "SEC") or compliance with any federal or state laws,
rules or regulations.

         (c) Payment of Exercise Price. The exercise price of an Option shall be
     paid in the form of one of more of the following, as the Committee shall
     specify, either through the terms of the Option Agreement or at the time of
     exercise of an Option: (i) cash, (ii) other property deemed acceptable by
     the Committee, (iii) a commitment by a brokerage firm acceptable to the
     Company to pay such exercise price from the proceeds of a sale of Shares
     issuable upon exercise of the Option, or (iv) any combination of (i)
     through (iii). The Company may, in its sole discretion, assist any person
     to whom an Option is granted hereunder in the payment of the purchase price
     (including, without limitation, by loan or the acceptance of a promissory
     note) payable in connection with the receipt or exercise of that Option.

SECTION 6. OTHER PROVISIONS APPLICABLE TO OPTIONS

     6.1 Nonassignability. Unless the Committee shall otherwise determine on a
         ----------------
case by case basis, no Option granted under the Plan shall be assignable or
transferable except (a) by will or by the laws of descent and distribution, or
(b) subject to the final sentence of this Section, upon dissolution of marriage
pursuant to a qualified domestic relations order. Unless the Committee shall
otherwise determine on a case by case basis, during the lifetime of a
Participant, an Option granted to him or her shall be exercisable only by the
Participant (or the Participant's permitted transferee) or his or her guardian
or legal representative. Notwithstanding the foregoing, (i) no Option owned by a
Participant subject to Section 16 of the Exchange Act may be assigned or
transferred in any manner inconsistent with Rule 16b-3 thereunder as interpreted
and administered by the Commission and its staff, and (ii) ISOs may not be
assigned or transferred in violation of Section 422(b)(5) of the Code or the
Treasury Regulations thereunder, and nothing herein is intended to allow such
assignment or transfer.

     6.2 Dividends. Unless otherwise provided by the Committee, no adjustment
         ---------
shall be made in Shares issuable under Options on account of cash dividends that
may be paid or other rights that may be issued to the holders of Shares prior to
their issuance under any Option. Unless otherwise provided by the Committee, no
dividends or dividend equivalent amounts shall be paid to any Participant with
respect to the Shares subject to any Option that has not vested or has not been
exercised on the record date for dividends.

     6.3 Consideration for Issuance of Shares. Any issuance of Shares may be
         ------------------------------------
conditioned upon payment of an amount equal to the minimum amount, if any,
required by applicable law for the issuance of such Shares. The absence of any
such condition shall be deemed to reflect a determination by the Committee that
non-cash consideration in an amount at least equal to the minimum amount, if
any, required by law has been or will be received prior to the issuance of such
Shares.

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     6.4 Conditions for Issuance of Options. The Committee may, in its
         ----------------------------------
discretion and on such terms as it may specify, require as a condition to the
grant of any Option that the Eligible Person surrender for cancellation some or
all of any previously granted employee benefit arrangement (including other
Options), or any rights under any such employee benefit arrangement. Any such
Option that is conditioned upon the surrender and cancellation of another
employee benefit arrangement or of rights thereunder may contain such other
terms as the Committee deems appropriate.

     6.5 Tandem Stock or Cash Rights. Either at the time an Option is granted or
         ---------------------------
by subsequent action, the Committee may, but need not, provide that an Option
shall contain as a term thereof, a right, either in tandem with the other rights
under the Option or as an alternative thereto, of the Participant to receive,
without payment to the Company, a number of Shares, cash or a combination
thereof, the amount of which is determined by reference to the value of the
Option.

     6.6 No Repricing. The Committee may not decrease the exercise price of
         ------------
Shares that may be acquired pursuant to Options granted under the Plan unless
such decrease is (a) made subject to approval by the shareholders of the Company
or (b) made pursuant to the adjustment provisions of Section 7.2.
                                                     -----------

SECTION 7. CHANGES IN CAPITAL STRUCTURE

     7.1 No Preferential Rights. The existence of outstanding Options shall not
         ----------------------
affect in any way the right or power of the Company or its shareholders to make
or authorize any or all adjustments, recapitalizations, reorganizations,
exchanges, or other changes in the Company's capital structure or its business,
or any merger or consolidation of the Company, or any issuance of any Shares or
other securities or subscription rights thereto, or any issuance of bonds,
debentures, preferred or prior preference stock ahead of or affecting the Shares
or the rights thereof, or the dissolution or liquidation of the Company, or any
sale or transfer of all or any part of its assets or business, or any other
corporate act or proceeding, whether of a similar character or otherwise.

     7.2 Adjustment in Shares. If the outstanding securities of the class then
         --------------------
subject to the Plan are increased, decreased or exchanged for or converted into
cash, property or a different number or kind of shares or securities, or if
cash, property or shares or securities are distributed in respect of such
outstanding securities, in either case as a result of a reorganization, merger,
consolidation, recapitalization, restructuring, reclassification, dividend
(other than a regular, quarterly cash dividend) or other distribution, stock
split, reverse stock split, spin-off or the like, or if substantially all of the
property and assets of the Company are sold, then, unless the terms of such
transaction shall provide otherwise, the Committee shall make appropriate and
proportionate adjustments in (a) the number and type of shares or other
securities or cash or other property that may be acquired pursuant to Options
theretofore granted under the Plan and the exercise or settlement price of such
Options, provided, however, that such adjustment shall be made in such a manner
that will not affect the status of any Option intended to qualify as an ISO
under Code Section 422, and (b) the maximum

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number and type of shares or other securities that may be issued pursuant to
such Options thereafter granted under the Plan. Any adjustments made by the
Committee pursuant to this Section shall be binding upon the holders of each
then outstanding Option, without need for any consent or amendment signed by
such holder, effective at such date as is fixed by the Committee.

SECTION 8. CHANGE OF CONTROL

     The Committee may, through the terms of the Option or otherwise, provide
that a Participant may have the ability to exercise any portion of the Option
not previously exercisable, upon change of control related events or termination
of the Participant's services for the Company following a change of control
related event. The Committee shall have the authority from time to time to
define change of control related events for purposes of this Section 8, which
                                                             ---------
may include, without limitation, a merger, reorganization, sale of assets,
liquidation, acquisition of a specified percentage of the Company's outstanding
equity securities (which specified percentage may be less than 50%), or a
significant change in composition of the Board.

SECTION 9. TAXES

     9.1 Withholding Requirements. The Committee may make such provisions or
         ------------------------
impose such conditions as it may deem appropriate for the withholding or payment
by the Participant, as appropriate, of any taxes that it determines are required
in connection with any Options granted under the Plan, and a Participant's
rights in any Option are subject to satisfaction of such conditions.

     9.2 Payment of Withholding Taxes. Notwithstanding the terms of Section 9.1,
         ----------------------------                               -----------
the Committee may in its discretion, but need not, provide in the Option
Agreement or otherwise that all or any portion of the taxes required to be
withheld by the Company in connection with the exercise of a Nonqualified Option
or the disposition of Shares issued under an ISO shall be paid or, at the
election of the Participant, may be paid by the Company withholding shares of
the Company's capital stock otherwise issuable or subject to such Option having
a fair market value equal to the amount required to be withheld or paid. Any
such elections are subject to such conditions or procedures as may be
established by the Committee and may be subject to disapproval by the Committee.

SECTION 10. AMENDMENT AND TERMINATION

     The Committee may, insofar as permitted by law, from time to time suspend
or discontinue the Plan or revise or amend it in any respect whatsoever, and the
Plan as so revised or amended will govern all Options thereunder, including
those granted before such revision or amendment, except that no such amendment
shall alter or impair or diminish in any material respect any rights or
obligations under any Option theretofore granted under the Plan without the
consent of the person to whom such Option was granted. In addition, if an
amendment to the Plan would materially increase the number of shares subject to
the Plan (as adjusted under Section 7.2), materially modify the requirements as
                            -----------
to eligibility for participation in the Plan, extend the final

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date upon which Options may be granted under the Plan, or otherwise materially
increase the benefits accruing to recipients in a manner not specifically
contemplated herein and that affects the Plan's compliance with Rule 16b-3 under
the Exchange Act or applicable provisions of the Code or requires the approval
of the Company's shareholders so that the Options hereunder continue to qualify
as "performance based compensation" described in Code Section 162(m) and the
Treasury regulations thereunder, then the amendment shall be subject to approval
by the Company's shareholders to the extent required to comply with Rule 16b-3
under the Exchange Act or applicable provisions of or rules under the Code.
Notwithstanding the foregoing, the Committee may amend the Plan to comply with
or take advantage of the rules or regulations (or interpretations thereof)
promulgated under Section 16 of the Exchange Act or under the Code, subject to
the shareholder approval requirement described above.

SECTION 11. COMPLIANCE WITH LAWS AND REGULATIONS

     11.1 Applicability of Laws. The Company shall not be required to issue or
          ---------------------
deliver any certificates for Shares prior to the completion of any registration
or qualification of such Shares under any federal, state or foreign law or any
ruling or regulation of any government body that the Committee shall, in its
sole discretion, determine to be necessary or advisable.

     11.2 Compliance with Securities Laws. The Plan, the grant and exercise of
          -------------------------------
Options thereunder, and the obligation of the Company to sell, issue or deliver
Shares under such Options, shall be subject to all applicable federal, state and
foreign laws, rules and regulations and to such approvals by any governmental or
regulatory agency as may be applicable. The exercisability of any Option and the
sale of any Share hereunder is conditioned upon the registration of the Shares
to be offered and sold with the SEC. In no event shall any Shares be offered or
sold hereunder prior to the effective date of registration with the SEC.

SECTION 12. NO RIGHT TO COMPANY EMPLOYMENT

     Neither the Plan nor the terms of any Option shall be construed to give any
Eligible Person the right to be retained in the employ of the Company or any
subsidiary or affiliate. The Company and its subsidiaries and affiliates each
retain the unqualified right to terminate the employment of any Eligible Person
at any time. Any Option Agreement may contain such provisions as the Committee
may approve with reference to the effect of approved leaves of absence.

SECTION 13. LIABILITY OF THE COMPANY

     The Company and any affiliate of the Company that is in existence or
hereafter comes into existence shall not be liable to a Participant, an Eligible
Person or other persons as to the following:

     13.1 The Non-Issuance of Shares. The non-issuance or sale of Shares as to
          --------------------------
which the Company has been unable to obtain from any regulatory body having
jurisdiction

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the authority deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder; and

     13.2 Tax Consequences. Any tax consequence expected, but not realized, by
          ----------------
any Eligible Person, Participant or other person due to the receipt, exercise or
settlement of any Option granted hereunder.

SECTION 14. EFFECTIVENESS AND EXPIRATION OF PLAN

     The Plan shall be effective as of the date designated by the Board, and
shall continue (unless earlier terminated by the Board) until its expiration as
set forth below; provided that the Plan shall be submitted for the approval of
each class of capital stock eligible to vote on matters submitted to a vote of
the Company's shareholders as soon as reasonably practicable; and provided,
further, that any Options granted prior to such shareholder approval shall be
considered subject to such approval. Unless previously terminated, the authority
to grant Options under the Plan shall expire ten (10) years after the effective
date of the Plan, but such expiration shall not affect any Option previously
made or granted that is then outstanding.

SECTION 15. NON-EXCLUSIVITY OF THE PLAN

     The adoption of the Plan by the Board shall not be construed as creating
any limitations on the power of the Company to adopt such other incentive
arrangements as it may deem desirable, including without limitation, the
granting of stock options otherwise than under the Plan, and such arrangements
may be either generally applicable or applicable only in specific cases.

SECTION 16. GOVERNING LAW

     This Plan and any agreements hereunder shall be interpreted and construed
in accordance with the internal laws of the State of Delaware and applicable
federal law. The Committee may provide that any dispute as to any Option shall
be presented and determined in such forum as the Committee may specify,
including through binding arbitration. Any reference in the Plan or in an Option
Agreement to a provision of law or to a rule or regulation shall be deemed to
include any successor law, rule or regulation of similar effect or
applicability.

                                       10<PAGE>

                                                                     EXHIBIT 4.4
                                                                     -----------

                                CREDIT AGREEMENT
                                ----------------

This Credit Agreement ("Agreement") is made and entered into on April 12, 2000,
by and between Synbiotics Corporation, a California corporation, ("Borrower"),
and Imperial Bank, a California banking corporation, ("Bank").

Subject to the terms and conditions of this Agreement, any security agreement(s)
executed by Borrower in favor of Bank, any note(s) executed by Borrower in favor
of Bank, or any other agreements executed in conjunction therewith
(collectively, the "Loan Documents"), Bank shall make the loan(s) and or
advance(s) (individually a "Loan" and collectively "Loans") referred to below to
Borrower.

In consideration of mutual covenants and conditions hereof, the parties hereto
agree as follows:

1.  AMOUNT AND TERMS OF CREDIT
    --------------------------

1.01     TERM LOAN COMMITMENT.

(a) TERM LOAN. Subject to the terms and conditions of this Agreement, Bank shall
make available to Borrower a term loan (the "Term Loan") in the amount of Six
Million Dollars ($6,000,000) the proceeds of which shall be used only for
refinancing existing senior debt.

(b) TERM LOAN NOTE. The interest rate, payment terms, maturity date and certain
other terms of the Term Loan will be contained in a promissory note dated the
date of this agreement, as such may be amended or replaced from time to time.

1.02     REVOLVING CREDIT COMMITMENT.

(a) REVOLVING LINE OF CREDIT. Subject to the terms and conditions of this
Agreement, provided that no event of default then has occurred and is
continuing, Bank shall, upon Borrower's request make advances ("Revolving
Loans") to Borrower, for general corporate purposes and the issuance of letters
of credit, in an amount not to exceed Four Million Dollars ($4,000,000) (the
"Revolving Line of Credit") until March 29, 2002 (the "Revolving Line of Credit
Maturity Date"). Revolving Loans may be repaid and reborrowed, subject to the
provisions of the LIBOR Addendum attached to the promissory note evidencing the
Revolving Line of Credit, provided that all outstanding principal and accrued
interest on the Revolving Loans shall be payable in full on the Revolving Credit
Maturity Date.

(b) REVOLVING NOTE. The interest rate, payment terms maturity date and certain
other terms of the Revolving Loan will be contained in a promissory note dated
the date of this agreement, as such may be amended or replaced from time to
time.

(c) LETTER OF CREDIT USAGE AND SUBLIMIT. Subject to availability under the
Revolving Line of Credit, at any time and from time to time from the date hereof
through the banking day immediately prior to the Revolving Line of Credit
Maturity Date, Bank shall issue for the account of Borrower such standby and
commercial letters of credit ("Letters of Credit") as Borrower may request,
which requests shall be made by delivering to Bank a duly executed letter of
credit application on Bank's standard form; provided, however, that the
outstanding and undrawn amounts under all such Letters of Credit (i) shall not
at any time exceed

                                       1
<PAGE>

$1,000,000 ("Letter of Credit Sublimit") and (ii) shall be deemed to constitute
Revolving Loans for the purpose of calculating availability under the Revolving
Line of Credit. Unless agreed to in writing by Bank, no Letter of Credit shall
have an expiration date that is later than the Revolving Line of Credit Maturity
Date. All Letters of Credit shall be in form and substance acceptable to Bank in
its sole discretion and shall be subject to the terms and conditions of Bank's
form application and letter of credit agreement and other agreements required by
Bank. Borrower will pay all usual issuance and other fees that Bank notifies
Borrower it will be charged for issuing and processing Letters of Credit for
Borrower.

1.03     LOAN FEES. In addition to any other amounts due, or to become due,
concurrent with the execution hereof, in connection with: (a) the Revolving Line
of Credit, Borrower shall pay to Bank a loan fee of Ten Thousand Dollars
($10,000) and (b) the Term Loan, Borrower shall pay to Bank a loan fee in the
amount of Thirty Thousand Dollars ($30,000). Borrower has paid, and Bank hereby
acknowledges receipt of Ten Thousand Dollars ($10,000) towards the payment of
these Loan Fees. Borrower shall pay to Bank a fee on the unused portion of the
Revolving Line of Credit equal to one-half percent (0.50%) per annum payable
quarterly in arrears (any amounts reserved for letters of credit will be
included in used portion).

1.04     DOCUMENTATION FEES, COSTS AND EXPENSES. In addition to any other
amounts due, or to become due, concurrently with the execution hereof, Borrower
agrees to pay to Bank a documentation fee in the amount of Five Thousand Dollars
($5000.00), and all other costs and expenses incurred by the Bank in the
preparation of this Agreement, the other Loan Documents and the perfection of
any security interest granted to Bank by Borrower.

1.05     COLLATERAL. Borrower shall grant or cause to be granted to Bank a first
priority lien on any and all personal property assets of Borrower which is
assigned or hereafter is assigned to Bank as security or in which Bank now has
or hereafter acquires a security interest or pursuant to the terms of any
security agreement, an intellectual property security agreement or otherwise as
security for all of Borrower's obligations to Bank, all as may be subject to
Section 5.03 hereof.

1.06     COLLECTION OF PAYMENTS. Borrower authorizes Bank to collect all
interest, fees, costs, and/or expenses due under this Agreement by charging
Borrower's demand deposit account number 08-220-638 with Bank, or any other
demand deposit account maintained by Borrower with Bank, for the full amount
thereof. Should there be insufficient funds in any such demand deposit account
to pay all such sums when due, the full amount of such deficiency shall be
immediately due and payable by Borrower.

2.  REPRESENTATIONS OF BORROWER
    ---------------------------

Borrower represents and warrants that:

2.01     EXISTENCE AND RIGHTS. Borrower is a corporation, duly organized and
existing and in good standing under the laws of the state of California, which
shall survive at least five years beyond the maturity of any Loans hereunder,
and Borrower is authorized and in good standing to do business in the state of
its incorporation. Borrower has the appropriate powers and adequate authority,
rights and franchises to own its property and to carry on its business as now
conducted, and is duly qualified and in good standing in each state in which the
character of the properties owned by it therein or the conduct of its business
makes such qualification necessary; and Borrower has the power and adequate
authority to make and carry out this Agreement. Borrower has no investment in
any other business entity (other than those listed on Schedule 2.01) unless
                                                      -------------
specified in writing to Bank.

                                       2
<PAGE>

2.02     AGREEMENT AUTHORIZED. The execution, delivery and performance of this
Agreement and the Loan Documents are duly authorized and do not require the
consent or approval of any governmental body or other regulatory authority; are
not in contravention of or in conflict with any law or regulation or any term or
provision of Borrower's articles of incorporation, or similar document as the
case may be, and this Agreement is the valid, binding and legally enforceable
obligation of Borrower in accordance with its terms; subject only to bankruptcy,
insolvency or similar laws affecting creditors rights generally.

2.03     NO CONFLICT. The execution, delivery and performance of this Agreement
and the Loan Documents are not in contravention of or in conflict with any
agreement, indenture or undertaking to which Borrower is a party or by which it
or any of its property may be bound or affected, and do not cause any lien,
charge or other encumbrance to be created or imposed upon any such property by
reason thereof.

2.04     LITIGATION. Except as disclosed in writing to Bank by Borrower, there
is no litigation or other proceeding pending or threatened against or affecting
Borrower which if determined adversely to Borrower or its interest would have a
material adverse effect on the financial condition of Borrower, and Borrower is
not in default with respect to any order, writ, injunction, decree or demand of
any court or other governmental or regulatory authority.

2.05     FINANCIAL CONDITION. The consolidated balance sheet of Borrower as of
December 31, 1999 and the related profit and loss statement for the 12- month
period ended as of that date, a copy of which has heretofore been delivered to
Bank by Borrower, and all other statements and data submitted in writing by
Borrower to Bank in connection with this request for credit are true and
correct, and said balance sheet truly presents the financial condition of
Borrower as of the date thereof, and has been prepared in accordance with
generally accepted accounting principles on a basis consistently maintained.
Since such date there have been no material adverse changes in the financial
condition or business of Borrower. Borrower has no knowledge of any liabilities,
contingent or otherwise, at such date not reflected in said balance sheet, and
Borrower has not entered into any special commitments or substantial contracts
which are not reflected in said balance sheet, other than in the ordinary and
normal course of its business, which may have a materially adverse effect upon
its financial condition, operations or business as now conducted.

2.06     TITLE TO ASSETS.  Borrower has good title to its assets, and the same
are not subject to any liens or encumbrances other than those permitted by
Section 5.03 hereof.

2.07     TAX STATUS.  Borrower has no liability for any delinquent state, local
or federal taxes, and, if Borrower has contracted with any government agency,
Borrower has no liability for renegotiation of profits.

2.08     TRADEMARKS, PATENTS. Borrower, as of the date hereof, possesses all
necessary trademarks, trade names, copyrights, patents, patent rights, and
licenses to conduct its business as now operated, without any known conflict
with the valid trademarks, trade names, copyrights, patents and license rights
of others.

2.09     REGULATION U. None of the proceeds of any Loan shall be used to
purchase or carry margin stock (as defined within Regulation U of the Board of
Governors of the Federal Reserve system).

                                       3
<PAGE>

2.10     ERISA. All defined benefit pension plans as defined in the Employees
Retirement Income Security Act of 1974, as amended ("ERISA"), of Borrower meet,
as of the date hereof, the minimum funding standards of Section 302 of ERISA,
and no Reportable Event or Prohibited Transaction as defined in ERISA has
occurred with respect to any such plan.

3.  CONDITIONS PRECEDENT TO LOAN
    ----------------------------

     Prior to Bank being obligated to make any Loan pursuant to this Agreement,
Bank must receive all of the following, each of which must be in form and
substance satisfactory to Bank:

3.01     PROMISSORY NOTE(S).  Original, executed promissory note(s) as
applicable.

3.02     SECURITY AGREEMENT.  Original, executed security agreement(s) covering
the personal property collateral securing the Loans.

3.03     FINANCING STATEMENT.  Financing statement(s) executed by Borrower and
any grantor of a security interest, including Borrower's subsidiaries.

3.04     INSURANCE. Borrower shall have delivered to Bank evidence of insurance
coverage required pursuant to that Agreement to Provide Insurance executed by
Borrower, in form, substance, amounts, covering risks and issued by companies
satisfactory to Bank, and where required by Bank, with Lenders Loss Payable
endorsement in favor of Bank.

3.05     ORGANIZATIONAL DOCUMENTS.  Copies of the articles of incorporation, or
similar document as the case may be, of the any Borrower.

3.06     AUTHORIZATIONS.  Certified copies of all action taken by any Borrower
to authorize the execution, delivery and performance of the Loan Documents.

3.07     GOOD STANDING.   Good standing certificates from the appropriate
secretary of state of the state in which any Borrower is organized and in each
state in which it is required to be qualified to do business.

3.08     CREDIT AGREEMENT.  This Agreement executed by Borrower.

3.09     ADDITIONAL DOCUMENTS.  Such other documents as Bank may reasonably deem
necessary.

4.  AFFIRMATIVE COVENANTS OF BORROWER
    ---------------------------------

Borrower agrees that so long as it is indebted to Bank, under borrowings, or
other indebtedness, or so long as Bank has any obligation to extend credit to
Borrower it will, unless Bank shall otherwise consent in writing:

                                       4
<PAGE>

4.01     RIGHTS AND FACILITIES. Maintain and preserve all rights, franchises and
other authority adequate for the conduct of its business; maintain its
properties, equipment and facilities in good order and repair; conduct its
business in an orderly manner without voluntary interruption and, if a
corporation or partnership, maintain and preserve its existence.

4.02     USE OF PROCEEDS.  Use the proceeds of the Loans only for purposes
specified in Section 1 of this Agreement.

4.03     INSURANCE. Maintain public liability, property damage and workers'
compensation insurance and insurance on all its insurable property against fire
and other hazards with responsible insurance carriers to the extent usually
maintained by similar businesses and/or in the exercise of good business
judgment, and as required by that Agreement to Provide Insurance executed by
Borrower, with the Bank to be shown as Lenders Loss Payee on such policies.

4.04     TAXES AND OTHER LIABILITIES. Pay and discharge, before the same become
delinquent and before penalties accrue thereon, all taxes, assessments and
governmental charges upon or against it or any of its properties, and all its
other liabilities at any time existing, except to the extent and so long as:

(a) The same are being contested in good faith and by appropriate proceedings in
such manner as not to cause any materially adverse effect upon its financial
condition or the loss of any right of redemption from any sale thereunder; and

(b) It shall have set aside on its books reserves (segregated to the extent
required by generally accepted accounting practice) deemed by it to be adequate
with respect thereto.

4.05     RECORDS AND REPORTS. Maintain a standard and modern system of
accounting in accordance with generally accepted accounting principles on a
basis consistently maintained; permit Bank's representatives to have access to,
and to examine its properties, books and records at all reasonable times and
upon reasonable notice during normal business hours; and furnish Bank:

(a) MONTHLY FINANCIAL STATEMENT. As soon as available, and in any event within
thirty (30) days after the close of each month, a consolidated and consolidating
balance sheet, profit and loss statement and reconciliation of Borrower's
capital balance accounts as of the close of such period and covering operations
for the portion of Borrower's fiscal year ending on the last day of such period,
all in reasonable detail and reasonably acceptable to Bank, in accordance with
generally accepted accounting principles on a basis consistently maintained by
Borrower and certified by an appropriate officer of Borrower.

(b) QUARTERLY FINANCIAL STATEMENT. As soon as available, and in any event within
forty-five (45) days after the close of each quarter (except Borrower's last
fiscal quarter), a 10Q report and a consolidated and consolidating balance
sheet, profit and loss statement and reconciliation of Borrower's capital
balance accounts as of the close of such period and covering operations for the
portion of Borrower's fiscal year ending on the last day of such period, all in
reasonable detail and reasonably acceptable to Bank, in accordance with
generally accepted accounting principles on a basis consistently maintained by
Borrower and certified by an appropriate officer of Borrower.

                                       5
<PAGE>

(c) ANNUAL FINANCIAL STATEMENT. As soon as available, and in any event within
ninety (90) days after and as of the close of each fiscal year of Borrower, a
10K report and a consolidated report of audit of Company, all in reasonable
detail, audited by an independent certified public accountant selected by
Borrower and reasonably acceptable to Bank, in accordance with generally
accepted accounting principles on a basis consistently maintained by Borrower
and certified by an appropriate officer of Borrower.

(d) OFFICER'S CERTIFICATE. Within forty-five (45) days after the end of each
quarter and within ninety (90) days of fiscal year end of Borrower, a
certificate of the chief financial officer of Borrower ("Compliance
Certificate"), stating that Borrower has performed and observed each and every
covenant contained in this Agreement to be performed by it and that no event has
occurred and no condition then exists which constitutes an event of default
hereunder or would constitute such an event of default upon the lapse of time or
upon the giving of notice and the lapse of time specified herein; or, if any
such event has occurred or any such condition exists, specifying the nature
thereof in the form of Schedule 4.05 (c) attached hereto.

(e) AUDIT REPORTS. Promptly after the receipt thereof by Borrower, copies of any
detailed audit reports submitted to Borrower by independent accountants in
connection with each annual or interim work on the accounts of Borrower made by
such accountants;

(f) STOCKHOLDER, SECURITY AND EXCHANGE COMMISSION STATEMENTS AND REPORTS.
Promptly after the same are available, copies of all such proxy statements,
financial statements and reports as Borrower or any subsidiary shall send to its
members or stockholders as appropriate, if any, and copies of all reports which
Borrower or any subsidiary may file with the Securities and Exchange Commission.

(g) OTHER INFORMATION. Such other information relating to the affairs of
Borrower as the Bank reasonably may request from time to time.

4.06     WORKING CAPITAL. Maintain at all times working capital, meaning current
assets (excluding all amounts due from stockholders, officers and affiliates)
minus total current liabilities (including all amounts due to stockholders,
officers and affiliates and any outstandings under the Revolving Line of Credit)
of not less than Six Million Dollars ($6,000,000).

4.07     TANGIBLE NET WORTH. Maintain at all times a consolidated Tangible Net
Worth (defined as stockholder's equity less any value for goodwill, trademarks,
patents, copyrights, leaseholds, organization expense and other similar
intangible items, and any amounts due from stockholders, officers and
affiliates) plus Subordinated Debt, meaning debt subordinated to the obligations
of Borrower to Bank, in form and substance satisfactory to Bank, of not less
than Five Million Dollars ($5,000,000) to be increased on a cumulative basis by:
(i) 70% of positive net income, plus (ii) 100% of the proceeds from the sale of
issuance of stock by Borrower, plus (iii) 100% of the equity issued in
connection with mergers and acquisitions, plus (iv) 100% of extraordinary gains;
all calculated in accordance with generally accepted accounting principles on a
basis consistently maintained by Borrower.

4.08     FIXED CHARGE COVERAGE RATIO. Maintain at all times on a consolidated
basis, a Fixed Charge Coverage Ratio of not less than 1.50 to 1.00. Fixed Charge
Coverage Ratio is defined as the ratio of EBITDA divided by the sum of (a)
current maturities of Long Term Debt, plus (b) capital lease expense, (c) plus
interest expense, (d) plus cash state and federal income taxes actually paid.
EBITDA

                                       6
<PAGE>

shall mean the sum of (a) net income after taxes, plus (b) interest expense,
plus (c) consolidated income tax expense, plus (d) depreciation and amortization
expense. Long Term Debt shall mean those debts or renewals or extensions thereof
whose original terms exceed one (1) year.

4.09     FUNDED SENIOR DEBT TO EBITDA. Maintain at all times on a consolidated
basis a ratio of Funded Senior Debt to EBITDA of not more than 3.0 to 1.0
beginning with test date March 31, 2000 through and including December 31, 2001;
of not more than 2.5 to 1.0 beginning with March 31, 2002 through and including
December 31, 2002; and of not more than 2.0 to 1.0 beginning with March 31, 2003
through maturity. Funded Senior Debt shall mean all liabilities of whatever
nature or duration consisting of indebtedness for borrowed money or indebtedness
(including obligations under capital leases but excluding debt subordinated to
the obligations of Borrower to Bank) incurred to finance the purchase of any
asset (including letter of credit obligations). EBITDA shall mean the sum of (a)
net income after taxes, plus (b) interest expense, plus (c) consolidated income
tax expense, plus (d) depreciation and amortization expense. Long Term Debt
shall mean those debts or renewals or extensions thereof whose original terms
exceed one (1) year.

For purposes of determining the Leverage Ratio and the Fixed Charge Coverage
Ratio, EBITDA shall be calculated as set forth in the table below opposite the
applicable Test Date:

                Test Date                  EBITDA CALCULATION
                ---------                  ------------------

           3/31/00                     EBITDA for the prior fiscal quarter ended
                                       on the test date multiplied by 4.

           6/30/00                     EBITDA for the prior two fiscal quarters
                                       ended on the test date multiplied by 2.

           9/30/00                     EBITDA for the prior three fiscal
                                       quarters ended on the test date
                                       multiplied by 4 then divided by 3.

           12/31/00 and each           EBITDA for the prior four fiscal quarters
           quarter  thereafter         ended on the test date

4.10     ERISA. Cause all defined benefit pension plans, as defined in ERISA, of
Borrower to, at all times, meet the minimum funding standards of Section 302 of
ERISA, and ensure that no Reportable Event or Prohibited Transaction, as defined
in ERISA, will occur with respect to any such plan.

4.11     LAWS. At all times comply with, or cause to be complied with, all laws,
statues, rules, regulations, orders and directions of any governmental authority
having jurisdiction over Borrower or Borrower's business.

4.12     GAAP. Compliance with all financial covenants shall be calculated
based on generally accepted accounting principles applied on a consistent basis
as maintained by Borrower.

                                       7
<PAGE>

4.13     OPERATING ACCOUNTS. Maintain all primary accounts and banking
relationship with the Bank. Maintain, or cause to be maintained, on deposit with
Bank, non-interest bearing demand deposit balances sufficient to compensate Bank
for all services provided by Bank. Balances shall be calculated after reduction
for the reserve requirement of the Federal Reserve Board and uncollected funds.
Any deficiencies shall be charged directly to the Borrower on a monthly basis.

4.14     NOTICES. Promptly notify Bank in writing of (i) the occurrence of any
Event of Default hereunder or any event which upon notice and lapse of time
would be an Event of Default; (ii) all litigation affecting Borrower where the
amount is Fifty Thousand Dollars ($50,000) or more; any substantial dispute
which may exist between Borrower and any governmental regulatory body or law
enforcement authority; any change in Borrower's name or principal place of
business; or any other matter which has resulted or might result in a material
adverse change in Borrower's financial condition or operations.

5.  NEGATIVE COVENANTS OF BORROWER
    ------------------------------

Borrower agrees that so long as it is indebted to Bank, or so long as Bank has
any obligation to extend credit to Borrower, it will not, without Bank's written
consent:

5.01     TYPE OF BUSINESS; MANAGEMENT; CHANGE IN CONTROL. Make any substantial
change in the character of its business or make any change in its executive
management.

5.02     OUTSIDE INDEBTEDNESS. Create, incur, assume or permit to exist any
indebtedness for borrowed moneys other than Loans from the Bank except
obligations now existing as shown in the financial statement dated December 31,
1999, excluding those obligations being refinanced by Bank, and other than those
Permitted Indebtedness listed on Schedule 5.02 attached hereto, or sell or
transfer, either with or without recourse, any accounts or notes receivable or
any moneys due or to become due.

5.03     LIENS AND ENCUMBRANCES. Create, incur, permit to exist, or assume any
mortgage, pledge, encumbrance, lien or charge of any kind upon any asset now
owned or hereafter acquired by it, other than liens for taxes not delinquent and
liens in Bank's favor and other than liens agreed to in writing by Bank (as
shown on Schedule 5.03 Permitted Liens).

5.04     LOANS, INVESTMENTS, SECONDARY LIABILITIES. Make any loans or advances
to any person or other entity other than in the ordinary and normal course of
its business as now conducted or make any investment in the securities of any
person or other entity other than the United States Government; or guarantee or
otherwise become liable upon the obligation of any person or other entity,
except by endorsement of negotiable instruments for deposit or collection in the
ordinary and normal course of its business.

5.05     ACQUISITION OR SALE OF BUSINESS; MERGER OR CONSOLIDATION. Purchase or
otherwise acquire the assets or business of any person or other entity; or
liquidate, dissolve, merge or consolidate, or commence any proceedings therefor;
or sell any assets except in the ordinary and normal course of its business as
now conducted; or sell, lease, assign, or transfer any substantial part of its
business or fixed assets, or any property or other assets necessary for the
continuance of its business as now conducted, including without limitation the
selling of any property or other asset accompanied by the leasing back of the
same.

                                       8
<PAGE>

Notwithstanding the above, Borrower is permitted to acquire the assets
comprising the Poultry Diagnostics Business from Kirkegaard & Perry Laboratories
("KPL") for Six Million Dollars ($6,000,000) pursuant to the Exchange Agreement
dated April 14, 2000 by and between Borrower and KPL.

In addition, Bank acknowledges Borrower and the members and managers of W3
Commcerce LLC ("W3C") have entered into an Exchange Agreement dated as of
January 12, 2000 whereby the individual members of W3C agreed to exchange their
membership interests in W3C solely for the convertible subordinated promissory
notes of Borrower with an aggregate original principal amount equal to Two
Million Eight Hundred Twelve Thousand Four Hundred Ninety-nine Dollars and Fifty
Cents ($2,812,499.50) and, if and when certain contingencies are satsified as
stated in the subordinated promissory notes, shares of common stock of Borrower.

5.06     CAPITAL EXPENDITURES. Make or incur obligations for fixed or capital
assets, which includes purchase money indebtedness or capital lease obligations,
in excess of One Million Dollars ($1,000,000) in any fiscal year.

Notwithstanding the above, Borrower is permitted to purchase the assets
comprising the Poultry Diagnostics Business from Kirkegaard & Perry Laboratories
("KPL") pursuant to the Exchange Agreement dated April 14, 2000 by and between
Borrower and KPL. The total purchase price of Six Million Dollars ($6,000,000)
shall be comprised of Three Million Five Hundred Thousand Dollars ($3,500,000)
cash payment to KPL at closing; One Million Dollars ($1,000,000) cash payment to
KPL upon the successful transfer of manufacturing to Borrower; and a three-year
royalty agreement not to exceed One Million Five Hundred Thousand Dollars
($1,500,000).

5.07     OPERATING LEASE  EXPENDITURES.  Make or incur obligations for operating
leases for real or personal property in excess of Two Hundred Thousand Dollars
($200,000) in any fiscal year.

5.08     DIVIDENDS. Declare or pay any dividend or make any other distribution
on any of its capital stock now outstanding or hereafter issued or purchase,
redeem or retire any of such stock other than in dividends or distributions
payable in Borrower's capital stock, except for the repurchase of Borrower's
capital stock from officers, directors, employees or consultants of Borrower
upon termination of their employment with or rendering of service to Borrower.

5.09     SUBORDINATED LIABILITIES. Make any payments on any Borrower's
obligation subordinated to the obligations to Bank, other than in accordance
with the provisions of any subordination agreement executed by the Bank and the
subordinated debt holder.

6.  EVENTS OF DEFAULT
    -----------------

The occurrence of any of the following events of default ("Events of Default")
shall, at Bank's option, terminate Bank's commitment to lend and make all sums
of principal and interest then remaining unpaid on all Borrower's indebtedness
to Bank immediately due and payable, all without demand, presentment or notice,
all of which are hereby expressly waived:

6.01     FAILURE TO PAY.  Failure to pay any installment of principal or of
interest on any indebtedness of Borrower to Bank within five (5) days of its due
date.

                                       9
<PAGE>

6.02     BREACH OF COVENANT.  Failure of Borrower to perform any other term or
condition of this Agreement or any Loan Document  binding upon Borrower.

6.03     BREACH OF WARRANTY. Any of Borrower's representations or warranties
made herein or any statement or certificate at any time given in writing
pursuant hereto or in connection herewith shall be false or misleading in any
respect.

6.04     INSOLVENCY; RECEIVER OR TRUSTEE. Borrower shall become insolvent; or
admit its inability to pay its debts as they mature; or make an assignment for
the benefit of creditors; or apply for or consent to the appointment of a
receiver or trustee for it or for a substantial part of its property or
business.

6.05     JUDGMENTS, ATTACHMENTS. Any money judgment in excess of Fifty Thousand
Dollars ($50,000), writ or warrant of attachment, or similar process shall be
entered or filed against Borrower or any of its assets and shall remain
unvacated, unbonded or unstayed for a period of ten (10) days or in any event
later than five (5) days prior to the date of any proposed sale thereunder.

6.06     BANKRUPTCY. Bankruptcy, insolvency, reorganization or liquidation
proceedings or other proceedings for relief under any bankruptcy law or any law
for the relief of debtors shall be instituted by or against Borrower and, if
instituted against it, shall not be dismissed within thirty (30) days
thereafter.

6.07     REVOCATION OF GUARANTEE AND/OR SUBORDINATION AGREEMENT. Any guarantee
or subordination agreement required hereunder is breached or becomes
ineffective; or any Guarantor or subordination creditor disavows or attempts to
revoke or terminate such guarantee or subordination agreement.

6.08     CESSATION OF BUSINESS. Borrower shall voluntarily suspend its
business.

6.09     ADVERSE CHANGE. Any change which, in the opinion of Bank, is materially
adverse to the financial condition of Borrower or any Guarantor; or should Bank,
for any reason, believe that the prospect of Borrower's payment or performance
hereunder or under any other agreement or instrument with Bank be impaired.

6.10     OTHER DEFAULTS. Borrower shall commit or do or fail to commit or do
any act or thing which would constitute an event of default under any of the
terms of any other agreement, document or instrument executed or to be executed
by it concerning the obligation to pay money.

6.11     ADVANCES. Notwithstanding anything to the contrary contained herein,
Bank shall have no duty to make advances while any event of default exists
notwithstanding any cure period provided for herein.

7.  MISCELLANEOUS PROVISIONS
    ------------------------

7.01     FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of
Bank or any holder of notes issued hereunder, in the exercise of any power,
right or privilege hereunder shall operate

                                       10
<PAGE>

as a waiver thereof, nor shall any single or partial exercise of any such power,
right or privilege preclude other or further exercise thereof or of any other
right, power or privilege. All rights and remedies existing under this Agreement
or any note (s) issued in connection with a Loan that Bank may make hereunder,
are cumulative to, and not exclusive of, any rights or remedies otherwise
available.

7.02     COUNTERPARTS; ENTIRE AGREEMENT. This Agreement may be executed by the
parties hereto in several counterparts, each of which shall be deemed to be an
original and all of which shall constitute together but one and the same
agreement. This Agreement, and the other Loan Documents constitute the entire
understanding among the parties hereto with respect to the subject matter hereof
and supersedes any prior agreements, written or oral, with respect thereto.

7.03     ATTORNEY'S FEES. Borrower will pay promptly to Bank without demand
after notice, with interest thereon from the date of expenditure at the rate
applicable to the Loan, reasonable attorneys' fees and all costs and expenses
paid or incurred by Bank in collecting or compromising the Loan after the
occurrence of an Event of Default, whether or not suit is filed. If suit is
brought to enforce any provision of this Agreement, the prevailing party shall
be entitled to recover its reasonable attorneys' fees and court costs in
addition to any other remedy or recovery awarded by the court.

7.04     ADDITIONAL REMEDIES. The rights, powers and remedies given to Bank
hereunder shall be cumulative and not alternative and shall be in addition to
all rights, powers and remedies given to Bank by law against Borrower or any
other person, including but not limited to Bank's rights of setoff or banker's
lien.

7.05     INUREMENT. The benefits of this Agreement shall inure to the
successors and assigns of Bank and the permitted successors and assigns of
Borrower.

7.06     APPLICABLE LAW. This Agreement and all other agreements and instruments
required by Bank in connection therewith shall be governed by and construed
according to the laws of the state of California, to the jurisdiction of whose
courts the parties hereby agree to submit.

7.07     OFFSET. In addition to and not in limitation of all rights of offset
that Bank or other holder of the Loan may have under applicable law, Bank or
other holder of any note issued hereunder shall, upon the occurrence of any
Event of Default or any event which with the passage of time or notice would
constitute such an Event of Default, have the right to appropriate and apply to
the payment of the Loan any and all balances, credits, deposits, accounts or
monies of Borrower then or thereafter with Bank or other holder, within ten (10)
days after the Event of Default, and notice of the occurrence of any Event of
Default by Bank to Borrower.

7.08     SEVERABILITY.  Should any one or more provisions of the Agreement be
determined to be illegal or unenforceable, all other provisions nevertheless
shall be effective.

7.09     TIME OF THE ESSENCE. Time is hereby declared to be of the essence of
this Agreement and of every part hereof.

7.10     ACCOUNTING. All accounting terms shall have the meanings applied under
generally accepted accounting principles unless otherwise specified.

                                       11
<PAGE>

7.11     REFERENCE PROVISION.

(a) Other than (i) nonjudicial foreclosure and all matters in connection
therewith regarding security interests in real or personal property; or (ii) the
appointment of a receiver, or the exercise of other provisional remedies (any
and all of which may be initiated pursuant to applicable law), each controversy,
dispute or claim between the parties arising out of or relating to this Credit
Agreement, any security agreement executed by Borrower in favor of Bank or any
note executed by Borrower in favor of Bank or any other agreement or instrument
issued in favor of Bank by Borrower (collectively in this Section, the
"Agreement") which controversy, dispute or claim is not settled in writing
within thirty (30) days after the "Claim Date" (defined as the date on which a
                                   ----------
party subject to this Agreement gives written notice to all other parties that a
controversy, dispute or claim exists), will be settled by a reference proceeding
in California in accordance with the provisions of Section 638 et seq. of the
                                                               -------
California Code of Civil Procedure, or their successor section ("CCP"), which
                                                                 ---
shall constitute the exclusive remedy for the settlement of any controversy,
dispute or claim concerning this Agreement, including whether such controversy,
dispute or claim is subject to the reference proceeding and except as set forth
above, the parties waive their rights to initiate any legal proceedings against
each other in any court or jurisdiction other than the Superior Court in the
County where the Real Property, if any, is located or Los Angeles County if none
(the "Court"). The referee shall be a retired Judge of the Court selected
      -----
by mutual agreement of the parties, and if they cannot so agree within
forty-five (45) days after the Claim Date, the referee shall be promptly
selected by the Presiding Judge of the Court (or his representative). The
referee shall be appointed to sit as a temporary judge, with all of the powers
for a temporary judge, as authorized by law, and upon selection should take and
subscribe to the oath of office as provided for in Rule 244 of the California
Rules of Court (or any subsequently enacted Rule). Each party shall have one
peremptory challenge pursuant to CCP (S)170.6. The referee shall (a) be
requested to set the matter for hearing within sixty (60) days after the date of
selection of the referee and (b) try any and all issues of law or fact and
report a statement of decision upon them, if possible, within ninety (90) days
of the Claim Date. Any decision rendered by the referee will be final, binding
and conclusive and judgment shall be entered pursuant to CCP (S)644 in any court
in the state of California having jurisdiction. Any party may apply for a
reference proceeding at any time after thirty (30) days following notice to any
other party of the nature of the controversy, dispute or claim, by filing a
petition for a hearing and/or trial. All discovery permitted by this Agreement
shall be completed no later than fifteen (15) days before the first hearing date
established by the referee. The referee may extend such period in the event of a
party's refusal to provide requested discovery for any reason whatsoever,
including, without limitation, legal objections raised to such discovery or
unavailability of a witness due to absence or illness. No party shall be
entitled to "priority" in conducting discovery. Depositions may be taken by
either party upon seven (7) days written notice, and request for production or
inspection of documents shall be responded to within ten (10) days after
service. All disputes relating to discovery which cannot be resolved by the
parties shall be submitted to the referee whose decision shall be final and
binding upon the parties. Pending appointment of the referee as provided herein,
the Superior Court is empowered to issue temporary and/or provisional remedies,
as appropriate.

(b) Except as expressly set forth in this Agreement, the referee shall determine
the manner in which the reference proceeding is conducted including the time and
place of all hearings, the order of presentation of evidence, and all other
questions that arise with respect to the course of the reference proceeding. All
proceedings and hearings conducted before the referee, except for trial, shall
be conducted without a court reporter except that when any party so requests, a
court reporter will be used at any hearing conducted before the referee. The
party making such a request shall have the obligation to arrange for and pay for
the court reporter. The costs of the court reporter at the trial shall be borne
equally by the parties.

(c) The referee shall be required to determine all issues in accordance with
existing case law and the statutory laws of the state of California. The rules
of evidence applicable to proceedings at law in the state

                                       12
<PAGE>

of California will be applicable to the reference proceeding. The referee shall
be empowered to enter equitable as well as legal relief, to provide all
temporary and/or provisional remedies and to enter equitable orders that will be
binding upon the parties. The referee shall issue a single judgment at the close
of the reference proceeding which shall dispose of all of the claims of the
parties that are the subject of the reference. The parties hereto expressly
reserve the right to contest or appeal from the final judgment or any appealable
order or appealable judgment entered by the referee. The parties hereto
expressly reserve the right to findings of fact, conclusions of laws, a written
statement of decision, and the right to move for a new trial or a different
judgment, which new trial, if granted, is also to be a reference proceeding
under this provision.

(d) In the event that the enabling legislation which provides for appointment of
a referee is repealed (and no successor statute is enacted), any dispute between
the parties that would otherwise be determined by the reference procedure herein
described will be resolved and determined by arbitration. The arbitration will
be conducted by a retired judge of the Court, in accordance with the California
Arbitration Act, (S)1280 through (S)1294.2 of the CCP as amended from time to
time. The limitations with respect to discovery as set forth hereinabove shall
apply to any such arbitration proceeding.

7.12     This Agreement may be modified only by a  writing signed by all parties
hereto.

This Agreement is executed on behalf of the parties by duly authorized officers
as of the date first above written.

IMPERIAL BANK                          SYNBIOTICS CORPORATION
("BANK")                               ("BORROWER")

By:  /s/ Jamie L. Harney               By:  /s/ Michael K. Green
     -------------------                    --------------------
         Jamie L. Harney                        Michael K. Green

Its:  Vice President                   Its:  Vice President - Finance

By:                                    By:
    --------------------                    --------------------

Its:                                   Its:

                                       13
<PAGE>

                                  SCHEDULE 2.01

                             BORROWER'S INVESTMENTS

SUBSIDIARIES OF SYNBIOTICS CORPORATION:
---------------------------------------

W3Commerce LLC
125 S. Tremont Street, #C
Oceanside, CA 92054

Synbiotics Europe S.A.S.
299 Avenue Jean-Jaures
69007 Lyons, France

                                       14
<PAGE>

                               SCHEDULE 4.05 (c)

                             COMPLIANCE CERTIFICATE
with Schedule I thereto

TO:  IMPERIAL BANK
     Orange County Regional Headquarters
     695 Town Center Drive, Suite 100
     Costa Mesa, CA 92626-1924
     Attention: Commercial Loans
     Fax (714) 641-2219

     THIS COMPLIANCE CERTIFICATE is furnished pursuant to Section 4.05(c) of
that certain Credit Agreement (the "Agreement") dated as of April ____, 2000,
between Synbiotics Corporation ("Borrower") and IMPERIAL BANK ("Bank"). Unless
otherwise defined herein, initially capitalized terms used in this Compliance
Certificate have the meanings described in the Agreement.

     THE UNDERSIGNED HEREBY CERTIFIES THAT:

     (1) The undersigned is the duly elected and serving President or Chief
Financial Officer of Borrower.

     (2) The undersigned has reviewed the terms of the Agreement and the Loan
Documents, and has made, or has caused to be made under the undersigned's
supervision, a detailed review of the transactions and conditions of the
Borrower during the accounting period covered by the attached financial
statements;

     (3) The examinations described in Paragraph (2) above did not disclose, and
the undersigned has no knowledge of, the existence of any condition or event
which constitutes an Event of Default or Unmatured Event of Default during, or
at the end of, the accounting period covered by the attached financial statement
or as of the date of this certificate, except as set forth below;

     (4) Schedule I and Exhibit 1(financial statements) attached hereto and
incorporated by this references set forth financial data and computations
evidencing Borrower's compliance with the Agreement, all of which data and
computations are true, complete and correct.

     (5) Described below are the exceptions, if any, to Paragraph (3) above
which list, in detail, the nature of the condition or event, the period during
which it has existed and the action which Borrower has taken, is taking, or
proposed to take with respect to each such condition or event:

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

                                       15
<PAGE>

     This Compliance Certificate, together with the computations set forth in
Schedule A and Exhibit 1 hereto and the financial statements delivered
concurrently herewith in support hereof, are made and delivered this _______day
of _______ , 2000.

     By: ________________________________
         President or Chief Financial Officer

                                       16
<PAGE>

                                   SCHEDULE I
                            TO COMPLIANCE CERTIFICATE

<TABLE>
<CAPTION>

WORKING CAPITAL - SECTION 4.06
------------------------------
<S>                                <C>                                                 <C>
                                   Current Assets                                      ____________
                                   Minus:
                                   Current Liabilities                                 ____________

                                   Actual Working Capital                              ____________

                                   Required                                             $6,000,000

                                   In Compliance?                                       Yes     No

TANGIBLE NET WORTH - SECTION 4.07
---------------------------------
     (a)  Consolidated Tangible Net Worth as shown on March 31, 2000 Financial
          Statements (after giving effect to KPL Acquisition)                          ____________

     (b)  70% of cumulative Consolidated Net Income for all fiscal quarters from
          and including March 31, 2000 (determined without making any reduction
          in the amount thereof by reason of any net loss arising in any fiscal
          quarter)                                                                     ____________

     (c)  100% of proceeds received by Borrower or Subsidiaries after March 31,
          2000 through the sale of equity of Borrower or its subsidiaries
                                                                                       ____________

     (d)  100% of equity issued in connection with mergers and acquisitions
          after March 31, 2000                                                         ____________

     (e)  100% of proceeds resulting from extraordinary gains realized after
          March 31, 2000                                                               ____________

          Required Tangible Net Worth (sum of (a) through (e))                         ____________

          Actual Tangible Net Worth                                                    ____________

          In Compliance?                                                                Yes     No
</TABLE>

                                       17
<PAGE>

<TABLE>
<CAPTION>
FIXED CHARGE COVERAGE RATIO  - SECTION 4.08
-------------------------------------------
<S>                                                                             <C>                 <C>
     (a)  Current Maturities of Long Term Debt                                  ____________
     (b)  Capital Lease Expense (for last fiscal four quarters)                 ____________
     (c)  Interest Expense (for last fiscal four quarters)                      ____________
     (d)  State and Federal Income Taxes (Cash Taxes Actually Paid)
          (for last fiscal four quarters)                                       ____________
     (e)  Total Fixed Charges for Last Fiscal Four Quarters
          (sum of (a) through (d))                                                                  ============
     (f)  Net Income After Taxes (for last fiscal four quarters)                ____________
     (g)  Interest Expense (for last fiscal four quarters)                      ____________
     (h)  Consolidated Income Tax Expense (for last fiscal four quarters)       ____________
     (i)  Depreciation and Income Tax Expense (for last fiscal four quarters)   ____________
     (j)  Rolling Four Quarter EBITDA (sum of (f) through (i))                                      ============

          Required Fixed Charge Coverage Ratio                                                       1.50:1.00
                                                                                                    ____________

          Actual Fixed Charge Coverage Ratio ((j) divided by (e))                                   ____________

          In   Compliance?                                                                            Yes   No
</TABLE>

For test periods 3/31/00; 6/30/00; and 9/30/00, EBITDA will be calculated per
Section 4.09 of the Credit Agreement

<TABLE>
<CAPTION>

FUNDED SENIOR DEBT TO EBITDA
----------------------------
     <S>                                                                           <C>            <C>
     (a)  Consolidated Total Senior Indebtedness
          (including outstanding Letters of Credit)                                ____________
     (b)  Capital Leases                                                           ____________
     (C)  Total Senior Indebtedness (sum of (a) through (b))                                       ============
     (d)  Net Income After Taxes (for last fiscal four quarters)                   ____________
     (e)  Interest Expense (for last fiscal four quarters)                         ____________
     (f)  Consolidated Income Tax Expense (for last fiscal four quarters)          ____________
     (g)  Depreciation and Income Tax Expense (for last fiscal four quarters)      ____________
     (h) Rolling Four Quarter EBITDA (sum of (d) through (g))                                      ============

          Required Funded Senior Debt to EBITDA Ratio                                              ____________

          Actual Funded Senior Debt to EBITDA Ratio ((c) divided by (h))                           ____________

          In Compliance?                                                                             Yes   No
</TABLE>
For test periods 3/31/00; 6/30/00; and 9/30/00, EBITDA will be calculated per
Section 4.09 of the Credit Agreement

                                       18
<PAGE>

                                  SCHEDULE 5.02

                             PERMITTED INDEBTEDNESS

Convertible Promissory Noted dated January 12, 2000 in the amount of Fourteen
Thousand Sixty-two Dollars ($14,062.00) from Synbiotics Corporation ("Maker") to
Kimberley Lind ("Payee")

Convertible Promissory Noted dated January 12, 2000 in the amount of Twenty-
eight Thousand One Hundred Twenty-five Dollars ($28,125.00) from Synbiotics
Corporation ("Maker") to Drew Keene ("Payee")

Convertible Promissory Noted dated January 12, 2000 in the amount of Twenty-
eight Thousand One Hundred Twenty-five Dollars ($28,125.00) from Synbiotics
Corporation ("Maker") to Steven Usrey ("Payee")

Convertible Promissory Noted dated January 12, 2000 in the amount of Twenty-
eight Thousand One Hundred Twenty-five Dollars ($28,125.00) from Synbiotics
Corporation ("Maker") to Tim Mudd ("Payee")

Convertible Promissory Note dated January 12, 2000 in the amount of Forty-two
Thousand One Hundred Eighty-seven Dollars and Fifty Cents ($42,187.50) from
Synbiotics Corporation ("Maker") to Mark Brunel-Cohen ("Payee")

Convertible Promissory Note dated January 12, 2000 in the amount of Fifty-six
Thousand Two Hundred Fifty Dollars ($56,250.00) from Synbiotics Corporation
("Maker") to Rigdon Currie ("Payee")

Convertible Promissory Note dated January 12, 2000 in the amount of Eighty-four
Thousand Three Hundred Seventy-five Dollars ($84,375.00) from Synbiotics
Corporation ("Maker") to Regan Francis Carey ("Payee")

Convertible Promissory Note dated January 12, 2000 in the amount of Three
Hundred Thirty-seven Thousand Five Hundred Dollars ($337,500.00) from Synbiotics
Corporation ("Maker")to Edward Brunel-Cohen ("Payee")

Convertible Promissory Note dated January 12, 2000 in the amount of Four Hundred
Twenty-one Thoursand Eight Hundred Seventy-five Dollars ($421,875.00) from
Synbiotics Corporation ("Maker") to Donna Lucas-Mudd ("Payee")

Convertible Promissory Note dated January 12, 2000 in the amount of One Million
Seven Hundred Seventy-one Thousand Eight Hundred Seventy-five Dollars
($1,771,875.00) from Synbiotics Corporation ("Maker") to Colin Lucas-Mudd
("Payee")

                                       19
<PAGE>

                                  SCHEDULE 5.03

                                 PERMITTED LIENS

UCC Financing Statement, #9513760936 filed on May 15, 1995
          Secured Party: Copelco Capital Inc.
          Debtor:        Synbiotics Corporation

UCC Financing Statement, #9616460594 filed on June 10, 1996
          Secured Party: Bankers Leasing Association, Inc.
          Debtor:        Synbiotics Corporation

UCC Financing Statement, #9620560318 filed on July 19, 1996
          Secured Party: Bankers Leasing Association, Inc.
          Debtor:        Synbiotics Corporation

UCC Financing Statement, #9710761031 filed on April 15, 1997
          Secured Party: Canon Financial Services, Inc.
          Debtor:        Synbiotics Corporation

UCC Financing Statement, #9824660102 filed on August 31, 1998
          Secured Party: Inter-Tel Leasing Inc.
          Debtor:        Synbiotics Corporation

UCC Financing Statement, #9824660292 filed on August 31, 1998
          Secured Party: Inter-Tel Leasing Inc.
          Debtor:        Synbiotics Corporation

UCC Financing Statement, #9912360657 filed on April 26, 1999
          Secured Party: General Electric Capital Business Asset Funding Corp.
          Debtor:        Synbiotics Corporation

UCC Financing Statement, #99146C0331 filed on May 24, 1999 - Assignment
          Secured Party: Celtic Leasing Corp.
          Debtor:        Synbiotics Corporation
          Assignee:      General Electric Capital Business Asset Funding Corp.

UCC Financing Statement, #99355C0326 filed on December 15, 1999
          Secured Party: General Electric Capital Business Asset Funding Corp.
          Debtor:        Synbiotics Corporation

                                       20

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