Document:

Exhibit 10.17

EMPLOYMENT AGREEMENT

THIS
EMPLOYMENT AGREEMENT (“Agreement”) is entered into by and between Diamond
Animal Health, Inc., an Iowa corporation with its principal office at 2538 S.E.
43rd Street, Des Moines, Iowa (“Company”) and Michael McGinley (“Employee”), effective as of May 1, 2000.

W I T N E S S E T H:

Whereas        Company desires to employ Employee to
act as its Vice President, Scientific Affairs
in an at-will capacity; and

Whereas        Employee wishes to act as Company’s Vice President, Scientific Affairs as an employee in an
at-will capacity;

NOW,
THEREFORE, in consideration of the mutual covenants and warranties contained
herein, the parties agree as follows:

1.                     Employment.  Company hereby employs Employee as its Vice President, Scientific Affairs, and Employee hereby
accepts such employment. 

2.                     Duties and
Responsibilities.  Employee shall
serve as Vice President, Scientific Affairs of
Company, with such duties and responsibilities as may be assigned to him from time to time by his
superior officers (the “Senior Management”) and/or the Board of Directors of
Company, and with such on-going daily duties and responsibilities as are
typically entailed in such position.  The
Senior Management and/or the Board of Directors shall be entitled to change such
title, duties and responsibilities from time to time, in their discretion.  Employee shall devote his
full time and energies to such duties.

3.                     Compensation.  Company shall pay Employee, as compensation
for services rendered under this Agreement, a “base salary” per year, the
amount of which shall initially be $118,000, which
may be increased from time-to-time by the Company in its discretion.  If for any reason during any given year,
Employee does not work an entire year, other than normal vacations as provided
hereunder, the compensation will be prorated to compensate only for the actual
time worked.

4.                     Expenses.  Company shall reimburse Employee for his reasonable out-of-pocket expenses incurred in connection
with the business of Company, including travel away from the Company’s
facilities, upon presentation of appropriate written receipts and reports and
subject to the customary practices and limitations of the Company.

5.                     Employee Benefits.  During the term of his
employment hereunder, Employee shall be entitled to receive the same benefits
that the Board of Directors establishes generally for the officers and other
employees of Company.  These may include,
from time to time, medical insurance, life insurance, paid vacation time and
medical disability insurance.

6.                     Termination.

(a)                                  At-Will.  This is an at-will employment
agreement and does not bind either of the parties to any specific term or
duration.

(i)  Employee is free to terminate employment with
Company at any time, for any reason, or for no reason, for cause or without
cause, and without any prior notice.

(ii)  Company is free to terminate the employment
of Employee at any time, for any reason or for no reason, for cause or without
cause, and without any prior notice.

(b)                                 Termination “Without Cause” — Separation
Benefits. 

(i)        Upon
“involuntary termination” of his employment
with Company for other than a “change of control”, as defined in Paragraph
6(c)(iii) below, Employee will be entitled to severance pay as provided in
Paragraph 6(b)(ii) below, unless he is
terminated for “cause” as defined in Paragraph 6(d)(ii) below.  Employee’s entitlement to any severance pay
is dependent on his execution of a complete
release of claims against Company and its affiliates.  

(ii)       In the event that severance pay is due to
Employee as a result of the “involuntary termination” of his
employment “without cause”, Employee will be paid six months’ “base salary” at
the rate in effect immediately prior to the termination in six equal monthly
installments (subject to all applicable taxes and other deductions), with the
first such installment due 15 days after the date of such termination and with
the following five installments due no later than monthly thereafter on Company’s
then regular payroll dates.  The Company
will also pay the employer contribution and administrative cost of the health
insurance premiums for the medical and dental insurance coverage previously
maintained by the Company for Employee and his eligible
dependents during this six month period or until Employee is provided or
obtains medical and dental insurance coverage by another employer or entity,
whichever first occurs.

(c)                                  Change of Control — Separation Benefits. 

(i)        Upon “involuntary termination” of his
employment due to a “change of control” of Company, Employee will be entitled
to severance pay as provided in Paragraph 6(c)(iv) below, unless he is terminated for “cause”, as defined in Paragraph
6(d)(ii) below.  Employee’s entitlement
to any severance pay is dependent on his execution
of a complete release of claims against Company and its affiliates.

(ii)       For the purposes of this Employment Agreement, “change of
control” is defined as the merger, acquisition or sale of Company or all or
substantially all of its assets with, into, or to a previously unaffiliated
third party entity, other than a merger in which the shareholders of Company
prior to the merger, by reason of such shareholdings, own more than 50% of the
outstanding shares of the company after the merger.

(iii)      The parties agree that for the purposes of this Employment
Agreement, an “involuntary termination” due to a “change of control” will be
deemed to have occurred when Employee is no longer employed by the Company’s
successor following a “change of control” because the Employee’s position is
eliminated within nine (9) months of the “change of control” or when Employee’s
job responsibilities are materially and negatively changed within nine (9)
months of the “change of control”, and Employee elects to resign.

(iv)      In the event that severance pay is due to Employee as a result
of the “involuntary termination” of his employment
without “cause” due to a “change of control”, Employee will be paid one (1)
year’s “base salary” at the rate in effect immediately prior to termination in
twelve equal monthly installments (subject to all applicable taxes and other
deductions), with the first such installment due 15 days after the date of such
termination and with the following eleven installments due no later than
monthly thereafter on Company’s then regular payroll dates.  The Company will also pay the employer
contribution and administrative cost of the health insurance premiums for the
medical and dental insurance coverage previously maintained by the Company for
Employee and his eligible dependents during
this one year period or until Employee is provided or obtains medical and
dental insurance coverage by another employer or entity, whichever first
occurs.

(d)                                 Termination “For Cause”; Voluntary
Resignation.

(i)        If Company or its successor terminates
Employee for “cause” or if Employee’s employment terminates for any reason
other than a termination by the Company “without cause” (as set forth in
paragraph 6(b) or due to a “change of control” (as set forth in Paragraph
6(c)), Employee will not be entitled to any severance pay and shall only
receive pay and benefits which Employee earned as of the date of termination.

(ii)       The parties agree that for the purposes
of this Employment Agreement, a termination for “cause” will be deemed to have
occurred when Company terminates Employee’s employment because of the
occurrence of any of the following events:

(A)      Employee shall refuse to accept a change or modification of his
title, duties or responsibilities by senior management and/or the Board of
Directors;

(B)       Employee shall refuse to accept a reasonable transfer not
arising from a change in control to a position with comparable responsibility and
salary with any affiliated company that does not involve commuting more than
fifty (50) miles each way from the Company’s location in the Des Moines, Iowa
area;

(C)       Employee shall die, be adjudicated to be mentally incompetent
or become mentally or physically disabled to such an extent that Employee is
unable to perform his duties
under this Employment Agreement for a period of ninety (90) consecutive days;

(D)      Employee shall commit any breach of his
obligations under this Agreement;

(E)       Employee shall commit any breach of any material fiduciary
duty to Company;

(F)       Employee shall be convicted of, or enter a plea of nolo  contendere to,
any crime involving moral turpitude or dishonesty, whether a felony or
misdemeanor, or any crime which reflects so negatively on Company as to be
detrimental to Company’s image or interests;

(G)       Employee shall commit insubordination or refusal to comply
with any request of his supervisor
or the Board of Directors of Company relating to the scope or performance of
Employee’s duties;

(H)      Employee shall possess any illegal drug on Company premises or
Employee shall be under the influence of illegal drugs or abusing prescription
drugs or alcohol while on Company business or on Company premises; or

(I)        Employee shall conduct himself in a
manner that, in the good faith and reasonable determination of the Senior
Management and/or the Board of Directors, demonstrates Employee’s unfitness to
serve.

7.                     Proprietary
Information.  Employee agrees that,
if he has not already done so, he will
promptly execute Company’s standard employee proprietary information and
assignment of inventions agreement.

8.                     Arbitration;
Attorney’s Fees.  If any dispute
arises under this Agreement or by reason of any asserted breach of it, or from
the Parties’ employment relationship or any other relationship, the Company, at
its sole discretion, may elect to have the dispute resolved through
arbitration, so long as all of the arbitrator’s fees and expenses are

borne exclusively by the Company. 
The arbitration shall be conducted pursuant to the rules of the American
Arbitration association, with the arbitrator being selected by mutual agreement
of the parties.  Regardless of whether
the dispute is resolved through arbitration or litigation, the prevailing party
shall be entitled to recover all costs and expenses, including reasonable
attorneys’ fees, incurred in enforcing or attempting to enforce any of the
terms, covenants or conditions, including costs incurred prior to commencement
of arbitration or legal action, and all costs and expenses, including
reasonable attorneys’ fees, incurred in any appeal from an action brought to
enforce any of the terms, covenants or conditions.  For purposes of this section, “prevailing
party” includes, without limitation, a party who agrees to dismiss a suit or
proceeding upon the other’s payment of performance of substantially the relief
sought.

9.                     Notices.  Any notice to be given to Company under the
terms of this Agreement shall be addressed to Company at the address of its
principal place of business.  Any notice
to be given to Employee shall be addressed to him
at his home address last shown on the
records of Company, or to such other address as Employee shall have given
notice of hereunder.

10.                   Miscellaneous.  This Agreement shall be governed by the laws
of the State of Iowa as applied to contracts between residents of that state to
be performed wholly within that state. 
This Agreement is the entire agreement of the parties with respect to
the subject matter hereof and supersedes all prior understandings and
agreements.  This Agreement may be
modified only by a written document signed by both parties, except that the
Company, in its discretion, may modify any policies, guidelines or other
directives, none of which shall constitute a binding agreement or impose any
contractual obligations.  This Agreement
shall be binding upon and shall inure to the benefit of the successors and
assigns of the parties.

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

	
  

  	
  DIAMOND ANIMAL HEALTH, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT B. GRIEVE

  	
   

  
	
   

  	
   

  	
  Robert B. Grieve

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chairman

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  /s/ MICHAEL McGINLEY

  	
   

  
	
   

  	
   

  	
  Michael McGinleyExhibit 10.18

EMPLOYMENT
AGREEMENT

THIS
EMPLOYMENT AGREEMENT (“Agreement”) is entered into by and between Heska
Corporation, a Delaware corporation with its principal office at 1613 Prospect
Parkway, Fort Collins, Colorado 80525 (“Company”) and Nancy Wisnewski (“Employee”),
effective as of April 15, 2002.

W I T N E S S E T H:

Whereas  Company desires to employ Employee to act as
its Senior Director, Pharmaceuticals in an at-will capacity; and

Whereas  Employee wishes to act as Company’s Senior
Director, Pharmaceuticals, as an employee in an at-will capacity;

NOW, THEREFORE, in
consideration of the mutual covenants and warranties contained herein, the
parties agree as follows:

1.             Employment.  Company hereby employs Employee as its Senior
Director, Pharmaceuticals and Employee hereby accepts such employment.

2.             Duties and Responsibilities.  Employee shall serve as Senior Director,
Pharmaceuticals of Company, with such duties and responsibilities as may be
assigned to her from time to time by her superior officers (the “Senior
Management”) and/or the Board of Directors of Company, and with such on-going
daily duties and responsibilities as are typically entailed in such
position.  The Senior Management and/or
the Board of Directors shall be entitled to change such title, duties and
responsibilities from time to time, in their discretion.  Employee shall devote her full time and
energies to such duties.

3.             Compensation.  Company shall pay Employee, as compensation
for services rendered under this Agreement, a “base salary” per year, the
amount of which shall initially be $117,500, which may be increased from
time-to-time by the Company in its discretion. 
If for any reason during any given year, Employee does not work an
entire year, other than normal vacations as provided hereunder, the
compensation will be prorated to compensate only for the actual time worked.

4.             Expenses.  Company shall reimburse Employee for her
reasonable out-of-pocket expenses incurred in connection with the business of
Company, including travel away from the Company’s facilities, upon presentation
of appropriate written receipts and reports and subject to the customary
practices and limitations of Company.

5.             Employee Benefits.  During the term of her employment hereunder,
Employee shall be entitled to receive the same benefits that the Board of
Directors establishes generally for the officers and other employees of
Company.  These may include, from time to
time, medical insurance, life insurance, paid vacation time and medical
disability insurance.

 1
 

6.             Termination.

(a)           At-Will.  This is an at-will employment agreement and
does not bind either of the parties to any specific term or duration.

(i)            Employee is free to terminate
employment with Company at any time, for any reason, or for no reason, for
cause or without cause, and without any prior notice.

(ii)           Company is free to terminate the
employment of Employee at any time, for any reason or for no reason, for cause
or without cause, and without any prior notice.

(b)           Termination “Without Cause” —
Separation Benefits.

(i)            Upon “involuntary termination” of
her employment with Heska Corporation for other than a “change of control”, as
defined in Paragraph 6(c)(iii) below, Employee will be entitled to severance
pay as provided in Paragraph 6(b)(ii) below, unless she is terminated for “cause”,
as defined in Paragraph 6(d)(ii) below. Employee’s entitlement to any severance
pay is dependent on her execution of a complete release of claims against
Company and its affiliates.

 (ii)          In
the event that severance pay is due to Employee as a result of the “involuntary
termination” of her employment “without cause”, Employee will be paid six
months’ “base salary” at the rate in effect immediately prior to the
termination in six equal monthly installments (subject to all applicable taxes
and other deductions), with the first such installment due 15 days after the
date of such termination and with the following five installments due no later
than monthly thereafter on Company’s then regular payroll dates.  The Company will also pay the employer
contribution and administrative cost of the health insurance premiums for the
medical and dental insurance coverage previously maintained by the Company for
Employee and her eligible dependents during this six month period or until
Employee is provided or obtains medical and dental insurance coverage by
another employer or entity, whichever first occurs.

 (c)          Change
of Control — Separation Benefits.

(i)            Upon “involuntary termination” of
her employment due to a “change of control” of Heska Corporation, Employee will
be entitled to severance pay as provided in Paragraph 6(c)(iv) below, unless
she is terminated for “cause”, as defined in Paragraph 6(d)(ii) below.  Employee’s entitlement to any severance pay
is dependent on her execution of a complete release of claims against Company
and its affiliates.

(ii)           For the purposes of this Employment
Agreement, “change of control” is defined as the merger, acquisition or sale of
Company or all or substantially all of its assets with, into, or to a
previously unaffiliated third party entity, other than a merger in which the
shareholders of Company prior to the merger, by reason of such shareholdings,
own more than 50% of the outstanding shares of the company after the merger.

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(iii)        The
parties agree that for the purposes of this Employment Agreement, an “involuntary
termination” due to a “change of control” will be deemed to have occurred when
Employee is no longer employed by the Company’s successor following a “change
of control” because the Employee’s position is eliminated within nine (9)
months of the “change of control” or when Employee’s job responsibilities are
materially and negatively changed within nine (9) months of the “change of
control”, and Employee elects to resign.

(iv)          In the event that severance pay is due
to Employee as a result of the “involuntary termination” of her employment
without “cause” due to a “change of control”, Employee will be paid one (1)
year’s “base salary” at the rate in effect immediately prior to the termination
in twelve equal monthly installments (subject to all applicable taxes and other
deductions), with the first such installment due 15 days after the date of such
termination and with the following eleven installments due no later than
monthly thereafter on Company’s then regular payroll dates. The Company will
also pay the employer contribution and administrative cost of the health
insurance premiums for the medical and dental insurance coverage previously
maintained by the Company for Employee and her eligible dependents during this
one year period or until Employee is provided or obtains medical and dental
insurance coverage by another employer or entity, whichever first occurs.

(d)                                 Termination
“For Cause”; Voluntary Resignation.

(i)            If Company or its successor
terminates Employee for “cause” or if Employee’s employment terminates for any
reason other than a termination by the Company “without cause” (as set forth in
paragraph 6(b)) or due to a “change of control” (as set forth in Paragraph
6(c)), Employee will not be entitled to any severance pay and shall only
receive pay and benefits which Employee earned as of the date of termination.

(ii)           The parties agree that for the
purposes of this Employment Agreement, a termination for “cause” will be deemed
to have occurred when Company terminates Employee’s employment because of the
occurrence of any of the following events:

(A)          Employee shall refuse to accept a
change or modification of his title, duties or responsibilities by senior
management and/or the Board of Directors;

(B)           Employee shall refuse to accept a
reasonable transfer not arising from a change in control to a position with
comparable responsibility and salary with any affiliated company that does not
involve commuting more than fifty (50) miles each way from the Company
headquarters in the Fort Collins, Colorado area;

(C)           Employee shall die, be adjudicated to
be mentally incompetent or become mentally or physically disabled to such an
extent that Employee is unable to perform his duties under this Employment
Agreement for a period of ninety (90) consecutive days;

(D)          Employee shall commit any breach of
his obligations under this Agreement;

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(E)           Employee shall commit any breach of
any material fiduciary duty to Company;

(F)           Employee shall be convicted of, or
enter a plea of nolo contendere to, any crime
involving moral turpitude or dishonesty, whether a felony or misdemeanor, or
any crime which reflects so negatively on Company as to be detrimental to
Company’s image or interests;

(G)           Employee shall commit insubordination
or refusal to comply with any request of his supervisor or the Board of
Directors of Company relating to the scope or performance of Employee’s duties;

(H)          Employee shall possess any illegal
drug on Company premises or Employee shall be under the influence of illegal
drugs or abusing prescription drugs or alcohol while on Company business or on
Company premises; or

(I)            Employee shall conduct herself in a
manner that, in the good faith and reasonable determination of the Senior Management
and/or the Board of Directors, demonstrates Employee’s unfitness to serve.

7.             Proprietary Information.  Employee agrees that, if she has not already
done so, she will promptly execute Company’s standard employee proprietary
information and assignment of inventions agreement.

8.             Arbitration; Attorneys’ Fees.  If any dispute arises under this Agreement or
by reason of any asserted breach of it, or from the Parties’ employment
relationship or any other relationship, the Company, at its sole discretion,
may elect to have the dispute resolved through arbitration, so long as all of
the arbitrator’s fees and expenses are borne exclusively by the Company.  The arbitration shall be conducted pursuant
to the rules of the American Arbitration association, with the arbitrator being
selected by mutual agreement of the parties. 
Regardless of whether the dispute is resolved through arbitration or
litigation, the prevailing party shall be entitled to recover all costs and
expenses, including reasonable attorneys’ fees, incurred in enforcing or
attempting to enforce any of the terms, covenants or conditions, including
costs incurred prior to commencement of arbitration or legal action, and all
costs and expenses, including reasonable attorneys’ fees, incurred in any appeal
from an action brought to enforce any of the terms, covenants or
conditions.  For purposes of this
section, “prevailing party” includes, without limitation, a party who agrees to
dismiss a suit or proceeding upon the other’s payment or performance of
substantially the relief sought.

9.             Notices.  Any notice to be given to Company under the
terms of this Agreement shall be addressed to Company at the address of its
principal place of business.  Any notice
to be given to Employee shall be addressed to her at her home address last
shown on the records of Company, or to such other address as Employee shall
have given notice of hereunder.

10.           Miscellaneous.  This Agreement shall be governed by the laws
of the State of Colorado as applied to contracts between residents of that
state to be performed wholly within that state. 
This Agreement is the entire agreement of the parties with respect to
the subject matter hereof and supersedes all prior understandings and agreements.  This Agreement may be modified only by a
written document signed by both parties, except that the Company, in its
discretion, may modify any policies, guidelines or other directives, none of
which shall constitute a binding

 4
 

agreement or
impose any contractual obligations.  This
Agreement shall be binding upon and shall inure to the benefit of the
successors and assigns of the parties.

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

	
  

  	
  HESKA CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ ROBERT
  B. GRIEVE

  
	
   

  	
   

  	
  Robert B. Grieve

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
    /s/ NANCY
  WISNEWSKI

  
	
   

  	
   

  	
  Nancy Wisnewski

  
				

 

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