Document:

<PAGE>

                              FORBEARANCE AGREEMENT

      THIS AGREEMENT dated as of April 9, 2004 by and between VIRBAC
CORPORATION, a Delaware corporation ("Virbac"), PM RESOURCES, INC., a Missouri
corporation ("PM Resources"), ST. JON LABORATORIES, INC., a California
corporation ("St. JON"), FRANCODEX LABORATORIES, INC., a Kansas corporation
("Francodex"), VIRBAC AH, INC., a Delaware corporation ("Virbac AH,"), and
DELMARVA LABORATORIES, INC., a Virginia corporation ("Delmarva," and
collectively with Virbac, PM Resources, St. JON, Francodex and Virbac AH
referred to herein as the "Borrowers") and FIRST BANK, a Missouri state banking
corporation (the "Lender") ( the "Agreement").

                                   WITNESSETH:

      WHEREAS, Borrowers are currently in default under a Credit Agreement dated
as of September 7, 1999 made by and among Borrowers and Lender, as previously
amended by an Amendment to Credit Agreement dated as of December 30, 1999 made
by and among Borrowers and Lender, by a Second Amendment to Credit Agreement
dated as of May 1, 2000 made by and among Borrowers and Lender, by a Third
Amendment to Credit Agreement dated as of April 4, 2001 made by and among
Borrowers and Lender, by a Fourth Amendment to Credit Agreement dated as of
August 7, 2002 made by and among Borrowers and Lender, by a Fifth Amendment to
Credit Agreement dated as of August 11, 2003 made by and among Borrowers and
Lender, by a Sixth Amendment to Credit Agreement dated as of September 3, 2003
made by and among Borrowers and Lender, and by a Seventh Amendment to Credit
Agreement dated as of March 1, 2004 made by and among Borrowers and Lender (as
amended, the "Credit Agreement;" capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to such terms in the Credit Agreement),
such default being Borrowers' default under the Credit Agreement for failure to
remain within the Borrowing Base (as defined therein) on and after January 31,
2004; and

      WHEREAS, Borrowers are currently in default under their Revolving Credit
Note dated September 3, 2003 in the original principal amount of up to Thirty
Million Dollars ($30,000,000.00) payable to the order of Lender as therein set
forth (as amended and restated, the "Note") upon which an aggregate principal
amount of loans presently outstanding of $25,293,491.48 is outstanding as of the
date hereof and Letters of Credit in the outstanding face amount of $275,000.00
have been issued thereunder (Borrowers' duties and obligations under the Credit
Agreement, the Note, the Letters of Credit, the Security Documents, as
hereinafter defined, and all related documents are herein referred to as the
"Obligations"); and

      WHEREAS, Virbac has previously executed a certain Security Agreement dated
as of May 14, 1998 in favor of the Lender, as amended from time to time, St. JON
has previously executed a certain Security Agreement dated as of May 14, 1998 in
favor of the Lender, as amended from time to time, PM Resources has previously
executed a certain Security Agreement dated as of May 14, 1998 in favor of the
Lender, as amended from time to time, Francodex has previously executed a
certain Security Agreement dated as of September 7, 1999 in favor of the Lender,
as amended from time to time, Virbac AH has previously executed a certain
Security Agreement dated as of September 7, 1999 in favor of the Lender, as
amended from time to time, Delmarva has previously executed a certain Security
Agreement dated as of September 3, 2003 in favor of the Lender, as amended from
time to time (collectively, as amended, the "Security Agreements"), Virbac has
previously executed a certain Second Amended and Restated Agreement of Pledge
dated as of September 3, 2003 in favor of the Lender, as amended from time to
time, Virbac AH has previously executed a certain Amended and Restated Agreement
of Pledge dated as of September 3, 2003 in favor of the Lender, as amended from
time to time (collectively, as amended, the "Agreements of Pledge"), PM
Resources has previously executed a certain Deed of Trust and Security Agreement
dated as of September 9, 1993 in favor of the Lender, as amended from time to
time, Virbac

<PAGE>

has previously executed a certain Deed of Trust and Security Agreement dated as
of September 3, 2003 in favor of the Lender, as amended from time to time
(collectively, as amended, the "Deeds of Trust"), Delmarva has previously
executed a certain Patent, Trademark and License Security Agreement dated as of
September 3, 2003 in favor of the Lender, as amended from time to time, Virbac
has previously executed a certain Patent, Trademark and License Security
Agreement dated as of September 3, 2003 in favor of the Lender, as amended from
time to time, and Virbac AH has previously executed a certain Patent, Trademark
and License Security Agreement dated as of September 3, 2003 in favor of the
Lender, as amended from time to time (collectively, as amended, the "IP Security
Agreements"), and other documents pledging a substantial portion of each such
Borrowers' tangible and intangible assets to secure performance and repayment of
the Obligations, (said Security Agreements, Agreements of Pledge, Deeds of
Trust, IP Security Agreements and other documents are referred to herein
collectively as the "Security Documents"); and

      WHEREAS, Borrowers acknowledge that the Lender may currently exercise all
remedies under the Note, the Credit Agreement and the Security Documents now in
effect and as otherwise provided by law, as a result of the defaults by
Borrowers; and

      WHEREAS, Borrowers have requested that Lender forbear from enforcing its
rights against and making demand upon Borrowers and their assets for a certain
period of time and on certain conditions as set forth herein; and

      WHEREAS, Lender is willing to forbear in the enforcement of its rights
against and in making demand upon Borrowers, provided that such forbearance is
on the following terms and conditions and, except as expressly provided below,
such forbearance does not waive or otherwise prejudice Lender's rights or
ability to make demand.

      NOW, THEREFORE, in consideration of the premises and the covenants and
agreements here in contained, the parties hereto agree as follows:

      1.    Terms of Standstill. During the "Standstill Period" (as defined in
Section 3 herein), the parties agree to act in accordance with the following
provisions:

            (a)   Lender. Lender covenants and agrees that it will:

            (i)   not file or join in the filing of any involuntary petition in
      bankruptcy with respect to the Borrowers or otherwise initiate or
      participate in any similar proceedings for the benefit of creditors,
      including any proceeding for the appointment of a trustee, receiver,
      conservator, or liquidator, of the Borrowers or any portion of their
      assets;

            (ii)  not seek to collect or enforce against the Borrowers by
      litigation or other legal proceedings any payment or other obligation due
      under the Note except as provided for herein; and

            (iii) not exercise or enforce any right or remedy against the
      Borrowers to which Lender would be entitled under the terms of the Note,
      Credit Agreement or Security Documents by reason of any event of default
      existing as of the date of this Agreement (which forbearance in exercise
      of enforcement shall not, however, act as a waiver of Lender's right to
      enforce any such right or remedy after termination of the Standstill
      Period).

                                      -2-
<PAGE>

      (b)   Borrowers. Borrowers covenants and agrees that during the
"Standstill Period" (as defined in Section 3 hereof):

            (i)   On or before April 9, 2004, Borrowers shall pay to Lender
      $3,000,000.00 in cash to be applied by Lender to reduce a portion of the
      overadvance amount by which Borrowers' outstanding Loans currently exceeds
      their Borrowing Base under the Credit Agreement and the Note, provided
      that prior to such payment Borrowers shall have: (A) notified Lender of
      the source of funds for making such repayment (which if in the form of
      debt and any Liens securing such debt must be subordinated to the
      Obligations in form and substance satisfactory to Lender) and (B) provided
      copies of any agreements to be made by any of the Borrowers with respect
      to obtaining such funds, all of which must be in form and substance
      acceptable to Lender (subject to satisfaction of such conditions, Lender
      agrees to waive the limitation of Sections 7.2(a) and 7.2(b) of the Credit
      Agreement for purposes of Borrowers incurring Indebtedness to make such
      $3,000,000.00 payment);

            (ii)  On or before May 3, 2004, Borrowers shall pay to Lender such
      additional principal payments as may be necessary to reduce the amount by
      which Borrowers' outstanding Loans then exceeds their Borrowing Base under
      the Credit Agreement and the Note to $0.00, provided that prior to such
      payment Borrowers shall have: (A) notified Lender of the source of funds
      for making such repayment (which if in the form of debt must be
      subordinated to the Obligations in form and substance satisfactory to
      Lender) and (B) provided copies of any agreements to be made by any of the
      Borrowers with respect to obtaining such funds, all of which must be in
      form and substance acceptable to Lender (subject to satisfaction of such
      conditions, Lender agrees to waive the limitation of Sections 7.2(a) and
      7.2(b) of the Credit Agreement for purposes of Borrowers incurring
      Indebtedness to make such payment);

            (iii) In addition to the reports required under the Credit Agreement
      and the Security Documents, Borrowers shall deliver to Lender:

                        (A) on or before Friday of each week, commencing with
            the next such delivery on Friday, April 9, 2004, a cash budget for
            Borrowers for the following week, setting forth Borrowers'
            projections based upon the best estimates available to Borrowers as
            to the anticipated cash receipts and cash disbursements of Borrowers
            as well as the anticipated repayments of the outstanding loans under
            the Credit Agreement and the Note, certified to Lender by the
            President or Chief Financial Officer of the Borrowers as to fairness
            of assumptions made and form of presentation; and

                        (B) on or before April 19, 2004, Borrowers' plan for
            elimination of the existing overadvance amount (by which Borrowers'
            outstanding Loans currently exceeds their Borrowing Base under the
            Credit Agreement and the Note), which plan shall provide for
            reduction of such amount to $0.00 on or before May 3, 2004 and shall
            set forth all of Borrowers' assumptions concerning anticipated
            sales, collections of receivables, Inventory purchases and such
            other information as Lender may reasonably require in order to
            evaluate the feasibility of such plan and its likelihood of success;
            and

                        (C) on or before April 26, 2004, the consolidated
            balance sheet of Borrowers and their Consolidated Subsidiaries as of
            December 31, 2003

                                      -3-
<PAGE>

            and the related consolidated statements of income, retained earnings
            and cash flows for the fiscal year ended as of December 31, 2003,
            all with consolidating disclosures and setting forth in each case,
            in comparative form, the figures for the previous fiscal year,
            together with any and all restated financial statements (balance
            sheets and statements of income, retained earnings and cash flows)
            for the fiscal years (or any periods during the fiscal years) ending
            December 31, 2002 and December 31, 2001, all such financial
            statements to be prepared in accordance with Generally Accepted
            Accounting Principles consistently applied and audited by and
            accompanied by the unqualified opinion of PriceWaterhouse Coopers.

            (iv)  Borrowers shall continue to supply to Lender in a timely
      fashion all other reports and documents as required under the Credit
      Agreement and the Security Documents, including, without limitation, the
      monthly Borrowing Base report required under the Credit Agreement;

            (v)   Borrowers shall comply with and fulfill the additional
      covenants and other terms and conditions set forth herein, including those
      contained in Sections 4 and 5 hereof;

            (vi)  Borrowers shall comply and fulfill all of the Obligations
      except to the extent any Obligation is directly amended by the express
      terms of this Agreement; and

            (vii) Borrowers agrees to pay Lender within five (5) days after any
      demand therefor all reasonable out-of-pocket costs and expenses and all
      reasonable attorneys' fees incurred by Lender in connection with the
      preparation, negotiation and execution of this Agreement and the other
      documents executed in connection with this Agreement; all of the
      obligations of Borrowers under this Section 1(b)(viii) shall survive the
      satisfaction and payment of Borrowers' Obligations and the termination of
      this Agreement and the Credit Agreement.

      2.    Conditions Precedent. This Agreement shall become effective upon the
occurrence or satisfaction of all of the following conditions precedent, all of
which conditions must occur on or before April 9, 2004:

            (a)   Borrowers shall have delivered to Lender this Forbearance
Agreement, duly executed by an authorized officer of each of the Borrowers;

            (b)   Borrowers shall have delivered to Lender resolutions of the
Board of Directors of Borrowers duly adopted which authorize the transactions
set forth in this Forbearance Agreement, which resolutions shall be in form and
substance satisfactory to Lender and shall be certified to Lender by the
President and Secretary or Assistant Secretary of each of the Borrowers;

            (c)   Borrowers shall have paid the fee required under Section 5(a)
herein; and

            (d)   Bank One, NA shall have executed an amended and restated
Amended and Restated Agreement and Certificate of Participation in the form of
Exhibit A attached hereto.

                                      -4-
<PAGE>

      3.    Standstill Period.

            (a)   The Standstill Period shall commence at such time as all
conditions precedent to this Agreement have occurred or have been satisfied, as
provided in Section 2 hereof, and shall terminate on May 10, 2004.

            (b)   Notwithstanding the foregoing, the Standstill Period shall
terminate earlier upon the occurrence of any of the following events of
termination:

            (i)   the entry of a decree or order by a court having jurisdiction
      in the premises for relief in respect to the Borrowers under Title 11 of
      the United States Code, as now constituted or hereafter amended, or any
      other applicable federal, state or foreign bankruptcy law, or other
      similar law, or appointing a receiver, liquidator, assignee, trustee,
      custodian, conservator or similar official of the Borrowers, or of any
      substantial part of the property of the Borrowers, or ordering the winding
      up of or liquidation of the affairs of the Borrowers;

            (ii)  the filing by the Borrowers of a petition or answer or consent
      seeking relief for Borrowers under Title 11 of the United States Code, as
      now constituted or hereafter amended, or any other applicable federal,
      state or foreign bankruptcy law or other similar law, or the consent by
      the Borrowers to the institution of proceedings thereunder or to the
      filing of any such petition or the appointment of taking possession by a
      receiver, liquidator, assignee, trustee, custodian, conservator, or other
      similar official of Borrowers or of any substantial portion of the
      property of Borrowers;

            (iii) the breach or violation by the Borrowers of any covenant or
      provision of this Agreement, or, except for the defaults presently in
      existence as of the date hereof and acknowledged herein, the breach or
      violation by the Borrowers of any other provision of the Credit Agreement,
      the Security Documents or any of the other Transaction Documents from and
      after the date hereof, and the expiration of applicable cure periods, if
      any;

            (iv)  the payment by Borrowers of all of the Obligations to Lender.

      4.    Amendments to the Credit Agreement and the other Transaction
Documents.

      Provided an event of termination as defined in Section 3(b) above does not
then exist or would not be created thereby or any event which, after notice or
lapse of time or both should constitute such an event of termination, does not
then exist, Lender shall continue to forbear on its rights and remedies under
the Credit Agreement and the Note subject to the following amendments to the
Credit Agreement:

            (a)   Amendment of Interest Rates. Provided no further Default or
Event of Default occurs, the interest accruing on the Obligations shall be
amended to increase such interest rate to a rate per annum equal to the Prime
Rate plus a Floating Rate Margin of One and One-Half Percent (1.50%) per annum
until the $3,000,000.00 payment required under Section 1(b)(i) herein is
received by Lender; upon receipt of such $3,000,000.00 payment required under
Section 1(b)(i) herein, the interest accruing on the Obligations shall be
reduced to a rate per annum equal to the Prime Rate plus a Floating Rate Margin
of One and One-Fourth Percent (1.25%) per annum until such time as Lender
determines that the overadvance amount (by which Borrowers' outstanding Loans
exceed the Borrowing Base under the Credit Agreement) has been eliminated as
required by Section 1(b)(ii) herein; and upon Lender's determination that the
overadvance amount has been eliminated as required by Section 1(b)(ii) herein,
the

                                      -5-
<PAGE>

Obligations shall thereafter accrue interest at the rate per annum equal to the
Prime Rate plus a Floating Rate Margin of One Percent (1.00%) per annum. The
definition of "Floating Rate Margin" in Section 2 of the Credit Agreement shall
be deleted in its entirety and in its place shall be substituted the following:

            Floating Rate Margin shall mean: (a) One and One-Half Percent
      (1.50%) per annum until the principal repayment in the amount of
      $3,000,000.00 is received by Bank as required under Section 1(b)(i) of
      that certain Forbearance Agreement dated as of April 9, 2004 made by and
      among Borrowers and Bank (as the same may be amended or modified from time
      to time, the "Forbearance Agreement"); (b) One and One-Fourth Percent
      (1.25%) from the date of receipt of the $3,000,000.00 payment described in
      part (a) of this definition until such time as Bank determines that the
      overadvance amount (the amount by which Borrowers' outstanding Loans then
      exceeds the Borrowing Base) has been eliminated as required by Section
      1(b)(ii) of the Forbearance Agreement; and (c) from and after the date the
      Bank determines that the overadvance amount has been eliminated as
      required by Section 1(b)(ii) of the Forbearance Agreement, One Percent
      (1.00%) per annum.

Interest accrued under the Note prior to the date of this Forbearance Agreement
shall continue to be due and payable, until paid, at the rates applicable prior
to the amendment made under this Section 4(b). Following any further Default or
Event of Default or following expiration of the Standstill Period for any
reason, interest shall accrue and be payable, on demand, at the default rate set
forth in Section 3.4(c) of the Credit Agreement.

            (b)   Amendment to Consolidated Net Worth Covenant. Section
7.1(i)(i) of the Loan Agreement shall be deleted in its entirety and in its
place shall be substituted the following:.

            (i)   Maintain a minimum Consolidated Net Worth at all times during
      the Term hereof of not less than the sum of: (A) the lesser of (1)
      $24,000,000.00 or (2) the December 31, 2003 Tangible Net Worth reflected
      on Borrowers' audited Consolidated financial statements, plus (B)
      Seventy-Five Percent (75%) of the Consolidated Net Income of Borrowers
      (with no deductions for any consolidated losses for any such month) shown
      on Borrowers' monthly consolidated financial statements for each month,
      commencing with the fiscal month ending January 31, 2004, such required
      increases to be cumulative from month to month;

            (c)   Collateral Security. All of the Security Documents and other
guaranties, security agreements and other Transaction Documents securing or
guarantying any of the Obligations shall continue to secure the Obligations as
herein amended.

      5.    Additional Covenants.

            (a)   In consideration of Lender's agreement to forbear as set forth
herein, Borrowers covenant and agree that they will pay to the Lender a fee on
the date hereof in the amount of $25,278.00, which fee is due and payable on the
date hereof and shall be fully earned on the date hereof;

            (b)   Borrowers covenant and agree that they will promptly furnish
to Lender any additional financial or other information as Lender may reasonably
request from time to time in order to assess the progress of Borrowers' ability
to repay or refinance all of the Obligations on or before May 10, 2004, to
verify Borrowers' compliance with this Agreement, or to ascertain whether any
event of termination of the Standstill Period has occurred;

                                      -6-
<PAGE>

            (c)   Borrowers covenant and agree that they will from time to time
execute such documents as are reasonably requested by Lender to protect Lender's
liens and security interests referred to herein and any other liens and security
interests of Lender, whether now or hereafter required;

            (d)   Borrowers covenant and agree that the Lender and its
designated representatives, upon request by Lender and upon reasonable notice,
shall have the right to visit and inspect the premises of each of the Borrowers
and inspect the books and records of each of the Borrowers as set forth in the
Credit Agreement, including, without limitation, the right to audit the
inventory and accounts receivable of the Borrowers or any similar and related
activities as Lender may request;

            (e)   Borrowers shall notify Lender in writing of any default
hereunder or any other event causing the Standstill Period to terminate, such
notice to be delivered to Lender within 24 hours of Borrowers' or any of their
respective employees or officers having received such knowledge or notice; and

            (f)   Borrowers shall not prepay any expense nor make any deposit of
funds with any person or entity other than Lender in excess of $1,000.00 without
prior written consent of the Lender, which consent shall not be unreasonably
withheld.

      6.    Representations and Warranties.

            (a)   Each of the Borrowers hereby represents and warrants to Lender
that it has the legal power and ability to enter into and perform this
Agreement, that all corporate actions required of it in connection with the
authorization, execution, delivery and performance of this Agreement have been
duly taken, and that when executed and delivered by each such Borrower, this
Agreement shall constitute its valid and binding obligation.

            (b)   Each of the Borrowers hereby expressly acknowledges the
Defaults and Events of Default set forth in the recital paragraphs to this
Forbearance Agreement; and each of the Borrowers further hereby expressly
acknowledges the Lender's right to take any and all actions and other remedies
set forth in the Note, Credit Agreement or Security Documents and as otherwise
provided for by law immediately upon the termination of the Standstill Period.

      7.    Miscellaneous.

            (a)   Each of the Borrowers hereby releases Lender and its
successors, assigns, directors, officers, agents, employees, representatives and
attorneys from any and all claims, demands, causes of action, liabilities or
damages, whether now existing or hereafter arising or contingent or
noncontingent, or actions in law or equity of any type or matter, relating to or
in connection with any statements, agreements, action or inaction on the part of
Lender occurring at any time prior to the execution of this Agreement, with
respect to any of the Borrowers, the Credit Agreement, the Note or any of the
Security Documents.

            (b)   Any Event of Default (other than the existing Event of Default
on the date hereof for Borrowers' failure to remain within the Borrowing Base
(as defined in the Credit Agreement)) under any of the terms of the Credit
Agreement (as herein amended), the Note, any of the other Security Documents or
any default under any of the terms of this Agreement shall permit Lender to
terminate the Standstill Period as set forth in Section 3(b)(iii) herein.

                                      -7-
<PAGE>

            (c)   Notwithstanding anything herein to the contrary, nothing
herein shall be construed as requiring Lender to extend the term of this
Forbearance Agreement or to continue forbearing in the exercise of any of its
rights and remedies beyond the period set forth in Section 3 hereof.

            (d)   This Agreement may not be modified in any manner, except by
written agreement signed by all parties hereto.

            (e)   No course of dealings heretofore or hereafter between
Borrowers and Lender or any failure or delay on the part of Lender in exercising
any rights or remedies under this Agreement or existing by law shall operate as
a waiver of any right or remedy of Lender with respect to the Obligations, and
no single or partial exercise of any right or remedy hereunder shall operate as
a waiver or a preclusion to the exercise of any rights or remedies Lender may
have under the Note, the Credit Agreement and/or the Security Documents.

            (f)   Notwithstanding anything herein to the contrary, nothing
herein shall be construed as a limitation or restriction against Lender's
enforcement of its rights in any proceeding described in subsection 3(b)(i) or
(ii) of this Agreement.

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

            (h)   This Agreement shall be governed by and construed in
accordance with the laws of the State of Missouri applicable to contracts made
and to be wholly performed within such State.

            (i)   Notices required hereunder shall be in writing and delivered
in person or sent by telecopy or registered or certified mail, return receipt
requested and postage prepaid, to the applicable party at its address or
telecopy number set forth below and shall be effective upon delivery:

      If to Borrowers:

            Virbac Corporation
            3200 Meacham Boulevard
            Fort Worth, Texas 76137
            Attention: David G. Eller, President
            Telecopy No. (817) 831-8362

      If to Lender:

            First Bank
            135 North Meramec
            St. Louis, Missouri  63105
            Attention: Traci Dodson, Vice President
            Telecopy No. (314) 854-5454

      ORAL COMMITMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR
FROM ENFORCING REPAYMENT OF A DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH
DEBT, ARE NOT ENFORCEABLE. TO PROTECT YOU AND US FROM MISUNDERSTANDING OR
DISAPPOINTMENT, ANY AGREEMENTS WE

                                      -8-
<PAGE>

REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE
AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER
AGREE IN WRITING TO MODIFY IT.

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first set forth above.

                                             Borrowers:

                                             VIRBAC CORPORATION
                                             PM RESOURCES, INC.
                                             ST. JON LABORATORIES, INC.
                                             VIRBAC AH, INC.
                                             FRANCODEX LABORATORIES, INC.
                                             DELMARVA LABORATORIES, INC.

                                             By: /s/ David G. Eller
                                                _______________________________
                                                 David G. Eller, President

                                             Lender:

                                             FIRST BANK

                                             By /s/ Traci Dodson
                                                ________________________________
                                                Traci Dodson, Vice President

                                      -9-<PAGE>

                       AMENDMENT TO FORBEARANCE AGREEMENT

      THIS AMENDMENT TO FORBEARANCE AGREEMENT, made and entered into as of the
10th day of May, 2004, by and between VIRBAC CORPORATION, a Delaware corporation
("Virbac"), PM RESOURCES, INC., a Missouri corporation ("PM Resources"), ST. JON
LABORATORIES, INC., a California corporation ("St. JON"), FRANCODEX
LABORATORIES, INC., a Kansas corporation ("Francodex"), VIRBAC AH, INC., a
Delaware corporation ("Virbac AH,"), and DELMARVA LABORATORIES, INC., a Virginia
corporation ("Delmarva," and collectively with Virbac, PM Resources, St. JON,
Francodex and Virbac AH referred to herein as the "Borrowers"), and FIRST BANK,
a Missouri banking corporation (the "Lender").

                                   WITNESSETH:

      WHEREAS, Borrowers and Lender have heretofore executed a Credit Agreement
dated as of September 7, 1999 made by and among Borrowers and Lender, as
previously amended from time to time (as amended, the "Credit Agreement"); and

      WHEREAS, Borrowers are presently in default under such Credit Agreement
and the other Security Documents and Transaction Documents as more fully set
forth in that certain Forbearance Agreement dated as of April 9, 2004 made by
and among Borrowers and Lender (as amended, the "Forbearance Agreement;"
capitalized terms used herein and not otherwise defined shall have the meanings
ascribed to such terms in the Forbearance Agreement); and

      WHEREAS, Lender's agreement to forebear with respect to Borrowers'
existing events of default as set forth in the Forbearance Agreement is
presently set to expire on May 10, 2004, and Borrowers have requested that
Lender extend such agreement to forebear; and

      WHEREAS, Borrowers and Lender desire to amend the Forbearance Agreement on
the terms and conditions set forth herein;

      NOW, THEREFORE, in consideration of the premises and the mutual provisions
and agreements hereinafter set forth, the parties hereto do hereby mutually
promise and agree as follows:

      1. Section 1(b)(ii) of the Forbearance Agreement shall be deleted in its
entirety and in its place shall be substituted the following:

            (ii) On or before May 10, 2004, Borrowers shall pay to Lender such
      additional principal payments as may be necessary to reduce the amount by
      which Borrowers' outstanding Loans then exceeds their Borrowing Base under
      the Credit Agreement and the Note to $0.00, provided that prior to such
      payment Borrowers shall have: (A) notified Lender of the source of funds
      for making such repayment (which if in the form of debt must be
      subordinated to the Obligations in form and substance satisfactory to
      Lender) and (B) provided copies of any agreements to be made by any of the
      Borrowers with respect to obtaining such funds, all of which must be in
      form and substance acceptable to Lender (subject to satisfaction of such
      conditions, Lender agrees to waive the limitation of Sections 7.2(a) and
      7.2(b) of the Credit Agreement for purposes of Borrowers incurring
      Indebtedness to make such payment);

      2. Section 1(b)(iii)(C) of the Forbearance Agreement shall be deleted in
its entirety and in its place shall be substituted the following:

<PAGE>

                  (C) on or before July 16, 2004, the consolidated balance sheet
      of Borrowers and their Consolidated Subsidiaries as of December 31, 2003
      and the related consolidated statements of income, retained earnings and
      cash flows for the fiscal year ended as of December 31, 2003, all with
      consolidating disclosures and setting forth in each case, in comparative
      form, the figures for the previous fiscal year, together with any and all
      restated financial statements (balance sheets and statements of income,
      retained earnings and cash flows) for the fiscal years (or any periods
      during the fiscal years) ending December 31, 2002 and December 31, 2001,
      all such financial statements to be prepared in accordance with Generally
      Accepted Accounting Principles consistently applied and audited by and
      accompanied by the unqualified opinion of PriceWaterhouse Coopers.

      3. A new Section 1(b)(iii)(D) shall be added to the Forbearance Agreement
immediately following Section 1(b)(iii)(C) therein as follows:

            (D) Within twenty-eight (28) days after the end of each month and in
      any event, simultaneously with the delivery of the preceding month's
      Borrowing Base Certificate, (A) an Accounts trial balance of Borrowers and
      their Consolidated Subsidiaries indicating which Accounts are up to 30, 31
      to 60, 61 to 90 and 91 days or more past the invoice date and including,
      if requested by the Bank, a listing of the names and addresses of all
      applicable Account Debtors, (B) a summary of accounts payable of Borrowers
      and their Consolidated Subsidiaries showing which accounts payable are
      current, up to 30, 31 to 60, 61 to 90 and 91 days or more past due, with
      contra accounts identified therein, and including, if requested by the
      Bank, a listing of the names and addresses of applicable creditors, (C) an
      Inventory listing, with obsolete, packaging and offsite inventory noted
      thereon, (D) a listing of all foreign account debtors, (E) a listing of
      all Accounts for which the Account Debtor is a Related Party to one or
      more of the Borrowers, (F) any other additional schedules necessary to
      compute the Borrowing Base which may be required by the Bank, (G) if
      requested by Bank, a schedule of the current outstanding orders of the ten
      largest customers of the Borrowers as of the preceding month-end, and (H)
      a schedule of the preceding month's gross sales and net sales (after
      discounts and other incentives) to each customer of the Borrowers, all in
      form and detail reasonably satisfactory to Bank and certified as being
      true, correct and complete by the President or the chief financial officer
      of the Borrowers;

      4. Section 3(a) of the Forbearance Agreement shall be deleted in its
entirety and in its place shall be substituted the following:

                  (a) The Standstill Period shall commence at such time as all
      conditions precedent to this Agreement have occurred or have been
      satisfied, as provided in Section 2 hereof, and shall terminate on August
      9, 2004.

      5. Section 3(b)(iv) of the Forbearance Agreement shall be deleted in its
entirety and in its place shall be substituted the following Sections 3(b)(iv)
and (v):

            (iv) that certain Subordination Agreement dated as of April 9, 2004
      made by Virbac S. A. in favor of the Bank and acknowledged by the
      Borrowers (as amended or restated from time to time, the "Subordination
      Agreement") shall at any time for any reason cease to be in full force and
      effect or shall be declared to be null and void by a court of competent
      jurisdiction, or if the validity or enforceability of the Subordination
      Agreement shall be contested or denied by Virbac S. A., or if Virbac S. A.
      shall deny that it has any

                                     - 2 -
<PAGE>

      further liability or obligation under the Subordination Agreement or if
      any repayment of any of the Subordinated Indebtedness (as defined in such
      Subordination Agreement) except to the extent any such repayments
      constitute "Permitted Payments" (as defined in such Subordination
      Agreement); and

            (v) the payment by Borrowers of all of the Obligations to Lender.

      6. The lead-in paragraph to Section 4 on page five of the Forbearance
Agreement shall be deleted in its entirety and in its place shall be substituted
the following:

            4. Amendments to the Credit Agreement and the other Transaction
      Documents.

            Provided an event of termination as defined in Section 3(b) above
      does not then exist or would not be created thereby or any event which,
      after notice or lapse of time or both should constitute such an event of
      termination, does not then exist, Lender shall continue to make advances
      to the Borrower under the terms of the Credit Agreement and the Note
      subject to the following amendments to the Credit Agreement and the Note:

With such revision to the lead-in paragraph to Section 4, and notwithstanding
the termination of the Bank's obligation to make any new Loans to any of the
Borrowers from and after March 1, 2004 as set forth in Paragraph 1 of the
Seventh Amendment to Credit Agreement and Amendment to Note dated as of March 1,
2004 made by and among Borrowers and Bank, subject to the terms of the Credit
Agreement (as amended by Sections 4(a) through 4(j) of the Forbearance Agreement
(as herein amended)), Bank will again make new Loans to Borrowers (provided that
an event of termination as defined in Section 3(b) of the Forbearance Agreement
does not then exist or any event which, after notice or lapse of time or both
would constitute such an event of termination, does not then exist) up to the
lesser of $20,000,000.00 or the then current Borrowing Base.

      7. Section 4(b) of the Forbearance Agreement shall be deleted in its
entirety and in its place shall be substituted the following:

                  (b) Amendment to Consolidated Net Worth Covenant. Section
      7.1(i)(i) of the Loan Agreement shall be deleted in its entirety and in
      its place shall be substituted the following:.

            (i) Maintain a minimum Consolidated Net Worth at all times during
      the Term hereof of not less than the sum of: (A) the lesser of (1)
      $27,500,000.00 or (2) the December 31, 2003 Net Worth reflected on
      Borrowers' audited Consolidated financial statements, plus (B)
      Seventy-Five Percent (75%) of the Consolidated Net Income of Borrowers
      (with no deductions for any consolidated losses for any such month) shown
      on Borrowers' monthly consolidated financial statements for each month,
      commencing with the fiscal month ending April 30, 2004, such required
      increases to be cumulative from month to month;

      8. A new Section 4(d) shall be added to the Forbearance Agreement
immediately following Section 4(c) therein as follows:

            (d) The third paragraph beginning with the word "WHEREAS" on the
      first page of the Credit Agreement shall be deleted in its entirety and in
      its place shall be substituted the following:

                                     - 3 -
<PAGE>

                  WHEREAS, Borrowers, including Virbac AH, Francodex and
            Delmarva which have been added as parties to the credit facilities,
            have requested that the aggregate amount thereof be amended to an
            aggregate principal amount of up to Twenty Million Dollars
            ($20,000,000.00) and otherwise amended on the terms and conditions
            set forth herein, with such loans to mature on August 9, 2004; and

      9. A new Section 4(e) shall be added to the Forbearance Agreement
immediately following Section 4(d) therein as follows:

            (e) Section 1 of the Credit Agreement shall be deleted in its
      entirety and in its place shall be substituted the following:

                  The "Term" of this Agreement shall commence on the date hereof
            and shall end on August 9, 2004, unless earlier terminated upon the
            occurrence of an Event of Default under this Agreement or upon an
            event of termination as defined in Section 3(b) of that certain
            Forbearance Agreement dated as of April 9, 2004 made by and among
            Borrowers and Lender, as amended.

      10. A new Section 4(f) shall be added to the Forbearance Agreement
immediately following Section 4(e) therein as follows:

            (f) The definition of "Eligible Accounts" in Section 2 of the Credit
      Agreement shall be deleted in its entirety and in its place shall be
      substituted the following:

                  Eligible Accounts shall mean all Accounts other than: (a)
            Accounts which remain unpaid for more than ninety (90) days after
            their invoice dates and Accounts which are not due and payable
            within ninety (90) days after their invoice dates; (b) Accounts
            owing by a single Account Debtor, including a currently scheduled
            Account, if ten percent (10%) or more of the balance owing by said
            Account Debtor upon said Accounts is ineligible pursuant to clause
            (a) above; (c) Accounts owing by a single Account Debtor, including
            a currently scheduled Account, to the extent the balance owing by
            said Account Debtor upon its Accounts exceeds Thirty Percent (30%)
            of the then outstanding amount of Borrowers' total Accounts); (d)
            Accounts with respect to which the Account Debtor is a shareholder
            or partner of any of the Borrowers or a Related Party of any of the
            Borrowers; (e) Accounts with respect to which payment by the Account
            Debtor is or may be conditional; (f) Accounts with respect to which
            the Account Debtor is not a resident or citizen of or otherwise
            located in the continental United States of America; (g) Accounts
            with respect to which the Account Debtor is the United States of
            America or any department, agency or instrumentality thereof unless
            such Accounts are duly assigned to Bank in accordance with all
            applicable governmental and regulatory rules and regulations
            (including, without limitation, the Federal Assignment of Claims Act
            of 1940, as amended, if applicable) so that Bank is recognized by
            the Account Debtor to have all of the rights of an assignee of such
            Accounts; (h) Accounts with respect to which any of the Borrowers is
            or may become liable to the Account Debtor for goods sold or
            services rendered by such Account Debtor to any such Borrower; (i)
            Accounts with respect to which the goods giving rise thereto have
            not been shipped and delivered to and accepted as satisfactory by
            the Account Debtor thereof or with respect to which the services
            performed giving rise thereto have

                                     - 4 -
<PAGE>

            not been completed and accepted as satisfactory by the Account
            Debtor thereof; (j) Accounts which are not invoiced (and dated as of
            such date) and sent to the Account Debtor thereof concurrently with
            or not later than five (5) days after the shipment and delivery to
            and acceptance by said Account Debtor of the goods giving rise
            thereto or the performance of the services giving rise thereto; (k)
            Accounts arising from a "sale on approval" or a "sale or return;"
            (l) Accounts as to which Bank, at any time or times hereafter,
            determines, in good faith, that the prospects of payment or
            performance by the Account Debtor is or will be impaired; (m)
            Accounts of an Account Debtor to the extent, but only to the extent,
            that the same exceed a credit limit determined by Bank in its
            discretion, at any time or times hereafter; (n) Accounts with
            respect to which the Account Debtor is located in the State of New
            Jersey or the State of Minnesota; provided, however, that such
            restriction shall not apply if such Borrower (i) has filed and has
            effective (A) in respect of Account Debtors located in the State of
            New Jersey, a Notice of Business Activities Report with the New
            Jersey Division of Taxation for the then current year or (B) in
            respect of Account Debtors located in the State of Minnesota, a
            Minnesota Business Activity Report with the Minnesota Department of
            Revenue for the then current year, as applicable, or (ii) is
            otherwise exempt from such reporting requirements under the laws of
            such State(s); (o) Accounts which are not subject to a first
            priority perfected security interest in favor of Bank; and (p)
            Accounts which have been factored by any of the Borrowers.

      11. A new Section 4(g) shall be added to the Forbearance Agreement
immediately following Section 4(f) therein as follows:

            (g) Section 3.1(a) of the Credit Agreement shall be deleted in its
      entirety and in its place shall be substituted the following:

                  (a) Revolving Credit Loans. Subject to the terms and
            conditions hereof, during the Term of this Agreement, Bank hereby
            agrees to make such loans (individually, a "Loan" and collectively,
            the "Loans") to Borrowers, jointly and severally, as any of the
            Borrowers may from time to time request pursuant to Section 3.2 and
            in Bank's discretion, to issue Letters of Credit for the account of
            the Borrowers, or any of them, upon any Borrower's execution of a
            Letter of Credit Application therefor pursuant to Section 3.3
            (subject to Bank's approval of the form of the Letters of Credit
            requested to be issued). The maximum aggregate principal amount of
            Loans plus the face amount of issued and outstanding Letters of
            Credit which Bank, cumulatively, may be required to have outstanding
            hereunder at any one time shall not exceed the lesser of Twenty
            Million Dollars ($20,000,000.00) (the "Bank's Commitment"), or (ii)
            the Borrowing Base (as hereinafter defined). Subject to the terms
            and conditions hereof, Borrowers may jointly and severally borrow,
            repay and reborrow such sums from Bank, provided, however, that the
            aggregate principal amount of all Loans outstanding hereunder plus
            the face amount of Letters of Credit issued and outstanding
            hereunder at any one time shall not exceed the lesser of the Bank's
            Commitment or the then current Borrowing Base.

      Contemporaneously with the execution of that certain Amendment to
      Forbearance Agreement dated as of May 10, 2004 (amending this Agreement),
      Borrowers shall execute and deliver to Bank a Note of Borrowers dated as
      of May 10, 2004 and payable

                                     - 5 -
<PAGE>

      jointly and severally to the order of Bank in the original principal
      amount of Twenty Million Dollars ($20,000,000.00) in the form attached as
      Exhibit B to such Amendment to Forbearance Agreement and incorporated
      herein by reference (as the same may from time to time be amended,
      modified, extended or renewed, the "Note"). All references in the Credit
      Agreement, this Agreement, the Security Documents and the other
      Transaction Documents to the "Note," the "Revolving Credit Note" and other
      references of similar import shall hereafter be amended and deemed to
      refer to the Note in the form of the Revolving Credit Note, as amended and
      restated in the form attached hereto as Exhibit B.

      12. A new Section 4(h) shall be added to the Forbearance Agreement
immediately following Section 4(g) therein as follows:

            (h) Section 3.1(c) of the Credit Agreement shall be deleted in its
      entirety and in its place shall be substituted the following:

                  (c) Borrowing Base. For purposes of computing the amount of
            the Loans available under this Section 3.1, the "Borrowing Base"
            shall mean the sum of:

                        (i) Seventy-Five Percent (75%) of the face amount of
            Eligible Accounts of each of the Borrowers, plus

                        (ii) Fifty Percent (50%) of the Eligible Inventory of
            each of the Borrowers, not to exceed, however, the then current
            amount calculated under clause (i) of this Section 3.1(c); plus

                        (iii) an amount determined by Lender as the loan value
            of Borrowers' fixed assets, which amount shall be deemed to be
            $9,562,400.00.

      13. A new Section 4(i) shall be added to the Forbearance Agreement
immediately following Section 4(h) therein as follows:

                  (i) Section 3.1(d) of the Credit Agreement shall be deleted in
      its entirety and in its place shall be substituted the following:

                  (d) Borrowing Base Certificate. Borrowers shall deliver to
            Bank on the twenty-eighth (28th) day of each month, commencing in
            the month of May, 2004, a borrowing base certificate in the form of
            Exhibit A attached to the Amendment to Forbearance Agreement dated
            as of May 10, 2004 made by and among Borrowers and the Bank (the
            "Forbearance Agreement Amendment") and incorporated herein by
            reference (a "Borrowing Base Certificate") setting forth:

                        (i) the Borrowing Base and its components as of the end
            of the immediately preceding month;

                        (ii) the aggregate principal amount of all outstanding
            Loans and the aggregate face amount of all issued and outstanding
            Letters of Credit; and

                                     - 6 -
<PAGE>

                        (iii) the difference, if any, between the Borrowing Base
            and the aggregate principal amount of all outstanding Loans plus the
            aggregate face amount of all issued and outstanding Letters of
            Credit.

            The Borrowing Base shown in such Borrowing Base Certificate shall be
            and remain the Borrowing Base hereunder until the next Borrowing
            Base Certificate is delivered to Bank, at which time the Borrowing
            Base shall be the amount shown in such subsequent Borrowing Base
            Certificate. Each Borrowing Base Certificate shall be certified
            (subject to normal year-end adjustments) as to truth and accuracy by
            the President, principal financial officer or controller of each of
            the Borrowers.

All references in the Credit Agreement, the Forbearance Agreement and the other
Transaction Documents to the "Borrowing Base Certificate" and other references
of similar import shall hereafter be amended and deemed to refer to a Borrowing
Base Certificate in the form of the Borrowing Base Certificate, as amended and
restated in the form attached hereto as Exhibit A.

      14.   A new Section 4(j) shall be added to the Forbearance Agreement
immediately following Section 4(i) therein as follows:

                  (j) Section 3.16 of the Loan Agreement shall be deleted in its
            entirety and in its place shall be substituted the following:

                        3.16 Maturity. All Loans not paid prior to August 9,
                  2004, together with all accrued and unpaid interest thereon,
                  shall be due and payable on August 9, 2004 (the "Maturity
                  Date").

      15. Section 5(b) of the Forbearance Agreement shall be deleted in its
entirety and in its place shall be substituted the following:

                  (b) Borrowers covenant and agree that they will promptly
      furnish to Lender any additional financial or other information as Lender
      may reasonably request from time to time in order to assess the progress
      of Borrowers' ability to repay or refinance all of the Obligations on or
      before August 9, 2004, to verify Borrowers' compliance with this
      Agreement, or to ascertain whether any event of termination of the
      Standstill Period has occurred;

      16. Borrowers hereby agrees to reimburse Lender, upon demand, for all
out-of-pocket costs and expenses, including reasonable legal fees and expenses
of the attorneys for the Lender incurred by Lender in the preparation,
negotiation and execution of this Amendment to Forbearance Agreement and all
other documents, instruments and agreements relating to this Amendment to
Forbearance Agreement with Lender.

      17. In consideration of the amendments made by Bank hereunder, Borrowers
shall jointly and severally pay to Bank on the date hereof an amendment fee in
the amount of $40,000.00, which fee shall be fully earned by Bank on the date
hereof.

                                     - 7 -
<PAGE>

      18. The amendments set forth herein are expressly conditioned upon the
following:

            (a) Execution and delivery by Borrowers of this Amendment to
Forbearance Agreement and of the amended and restated Revolving Credit Note in
the form attached hereto as Exhibit B;

            (b) Repayment by the Borrowers of the amount by which Borrowers'
outstanding Loans then exceeds their current Borrowing Base under the Credit
Agreement and the Note, which amount totals $295,331.00 as of the date hereof;

            (c) Payment by the Borrowers of the amendment fee described in
Paragraph 17 above;

            (d) Execution and delivery by Bank One, NA of a Consent of
Participant, in form and substance acceptable to Bank, consenting to the terms
of this Amendment; and

            (e) Execution and delivery of such other agreements and other
documents reasonably requested by Lender to complete the transactions
contemplated herein.

      19. Borrowers hereby represents and warrants to Lender that:

            (a) The execution, delivery and performance by Borrowers of this
Amendment to Forbearance Agreement are within the corporate powers of the
Borrowers, have been duly authorized by all necessary corporate action and
require no action by or in respect of, or filing with, any governmental or
regulatory body, agency or official. The execution, delivery and performance by
Borrowers of this Amendment to Forbearance Agreement do not conflict with, or
result in a breach of the terms, conditions or provisions of, or constitute a
default under or result in any violation of, and Borrowers are not now in
default under or in violation of, the terms of the Articles of Incorporation or
Bylaws of any of the Borrowers, any applicable law, any rule, regulation, order,
writ, judgment or decree of any court or governmental or regulatory agency or
instrumentality, or any agreement or instrument to which any of the Borrowers is
a party or by which any of them is bound or to which any of them is subject
(other than the existing defaults under the Credit Agreement and the other
Transaction Documents described herein above); and

            (b) This Amendment to Forbearance Agreement has been duly executed
and delivered and constitutes the legal, valid and binding obligation of the
Borrowers enforceable in accordance with its terms, except as such
enforceability may be limited by (i) bankruptcy, insolvency or other similar
laws affecting creditors' rights generally and (ii) general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).

      20. Borrowers hereby releases Lender and its successors, assigns,
directors, officers, agents, employees, representatives and attorneys from any
and all claims, demands, causes of action, liabilities or damages, whether now
existing or hereafter arising or contingent or noncontingent, or actions in law
or equity of any type or matter, relating to or in connection with any
statements, agreements, action or inaction on the part of Lender occurring at
any time prior to the execution of this Amendment to Forbearance Agreement, with
respect to Borrowers, the Credit Agreement, the Note, any of the Security
Documents or the Forbearance Agreement.

      21. All references in the Forbearance Agreement to "this Forbearance
Agreement," "this Agreement" and any other references of similar import shall
henceforth mean the Forbearance Agreement as amended by this Amendment to
Forbearance Agreement.

                                     - 8 -
<PAGE>

      22. This Amendment to Forbearance Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns, except that Borrowers may not assign, transfer or delegate any of its
rights or obligations hereunder.

      23. This Amendment to Forbearance Agreement shall be governed by and
construed in accordance with the internal laws of the State of Missouri.

      24. In the event of any inconsistency or conflict between this Amendment
to Forbearance Agreement and the Forbearance Agreement, the terms, provisions
and conditions of this Amendment to Forbearance Agreement shall govern and
control.

      25. The Forbearance Agreement, as hereby amended and modified, is and
shall remain the binding obligation of the Borrowers and all of the provisions,
terms, stipulations, conditions, covenants and powers contained therein shall
stand and remain in full force and effect, except only as the same are herein
and hereby specifically varied or amended, and the same are hereby ratified and
confirmed. If any principal, interest or other amount due under the Forbearance
Agreement or under the Note of Borrowers, as modified pursuant hereto, shall not
be paid when due, the Lender shall be entitled to and may exercise all rights
and remedies under the Forbearance Agreement, such Note and as otherwise
provided by law.

      26. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO
FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT, INCLUDING PROMISES TO EXTEND OR
RENEW SUCH DEBT, ARE NOT ENFORCEABLE. TO PROTECT BORROWERS AND LENDER FROM ANY
MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS REACHED BY BORROWERS AND
LENDER COVERING SUCH MATTERS ARE CONTAINED IN THE CREDIT AGREEMENT, AS AMENDED
BY THE FORBEARANCE AGREEMENT AND THIS AMENDMENT TO FORBEARANCE AGREEMENT, WHICH
CONSTITUTES A COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENTS BETWEEN
BORROWERS AND LENDER EXCEPT AS BORROWERS AND LENDER MAY LATER AGREE IN WRITING
TO MODIFY. THE CREDIT AGREEMENT, AS AMENDED BY THE FORBEARANCE AGREEMENT AND
THIS AMENDMENT TO FORBEARANCE AGREEMENT, EMBODIES THE ENTIRE AGREEMENT AND
UNDERSTANDING BETWEEN THE PARTIES HERETO AND SUPERSEDES ALL PRIOR AGREEMENTS AND
UNDERSTANDINGS (ORAL OR WRITTEN) RELATING TO THE SUBJECT MATTER HEREOF.

                                     - 9 -
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this instrument as of
the date first written above effective as of the 10th day of May, 2004.

                                       Borrowers:

                                       VIRBAC CORPORATION
                                       PM RESOURCES, INC.
                                       ST. JON LABORATORIES, INC.
                                       VIRBAC AH, INC.
                                       FRANCODEX LABORATORIES, INC.
                                       DELMARVA LABORATORIES, INC.

                                       By: /s/ David G. Eller
                                          _____________________________________
                                           David G. Eller, President

                                       Lender:

                                       FIRST BANK

                                       By /s/ Traci Dodson
                                         ______________________________________
                                          Traci Dodson, Vice President

                                     - 10 -
<PAGE>

                                    EXHIBIT A

                           BORROWING BASE CERTIFICATE

                             AS OF ________________

      Pursuant to the Credit Agreement dated September 1999 and thereafter
amended among Virbac Corporation ("Borrower) and First Bank ("Bank"), Borrower
hereby warrants to Bank that as of the date indicated above, the information in
this report is true and correct and that the total eligible accounts and
eligible inventory referred to herein qualify per terms of the Credit Agreement.
Borrower further represents and warrants to Bank that as of this date Borrower
is in full compliance with all of its obligations under the Credit Agreement and
all other Loan Documents and is not in default of any term or provision hereof
or thereof.

1.  ELIGIBLE ACCOUNTS RECEIVABLE

<TABLE>
<S>                                                                                   <C>                <C>
Total Accounts Receivable per attached aging of same date as this report hereof       _______________

less: Accounts more than 90 days from date of invoice                                 _______________
less: Credits aged greater than 90 days from date of invoice and included above       _______________

less: Accounts ineligible due to 10% taint                                            _______________
less: That portion of Accounts due from any Account Debtor that exceed 30% of Total
Accounts Receivable                                                                   _______________
less: Accounts due from any Account Debtor that is a shareholder, partner or
related party of Borrower                                                             _______________

less: Rebate Accruals and Credit/Return Reserves                                      _______________
less: Accounts due from any Account Debtor located outside the continental United
States of America                                                                     _______________
less: Accounts for which Borrower is liable to Account Debtor for goods sold or
services provided by Account Debtor                                                   _______________

less: Other ineligible accounts per Credit Agreement                                  _______________

TOTAL ELIGIBLE ACCOUNTS RECEIVABLE:                                                                      $_______________
</TABLE>

2.  ELIGIBLE INVENTORY

<TABLE>
<S>                                                                                 <C>                  <C>
Total Inventory per attached inventory listing of same date as this report hereof   _______________

less: Work in process                                                               _______________

less: Obsolete inventory                                                            _______________

less: Consignment inventory                                                         _______________
</TABLE>

                                     - 15 -
<PAGE>

<TABLE>
<S>                                                                                 <C>                  <C>
less: Inventory not maintained at one of the locations provided in the Security
Agreements                                                                          _______________
less: Inventory not usable or saleable, at prices not less than standard cost, to
include packaging supplies                                                          _______________

less: Other ineligible inventory per Credit Agreement                               _______________

     TOTAL ELIGIBLE INVENTORY:                                                                           $_______________
</TABLE>

3. BORROWING BASE

<TABLE>
<S>                                                                                 <C>                  <C>
Total Eligible Accounts Receivable * 75%                                            _______________
Total Eligible Inventory * 50% (not to exceed Accounts Receivable Borrowing Base
above)                                                                              _______________

Loan Value of Fixed Assets (not to exceed $9,562,400)                               _______________

      TOTAL BORROWING BASE:                                                                              $_______________
</TABLE>

4. LOAN AMOUNT

<TABLE>
<S>                                                                             <C>                      <C>
Lesser of Borrowing Base or Bank's Commitment ($20,000,000)                     _______________

less: Outstanding Loan Balance                                                  _______________

less: Issued and Outstanding Letters of Credit                                  _______________

      TOTAL ADVANCES AVAILABLE:                                                                          $_______________
</TABLE>

VIRBAC CORPORATION

By:    ________________________

Title: ________________________

Date:  ________________________

                                     - 16 -
<PAGE>

                                    EXHIBIT B

                              Revolving Credit Note

$20,000,000.00                                               St. Louis, Missouri
                                                                    May 10, 2004

      FOR VALUE RECEIVED, on August 9, 2004 (or such subsequent anniversary
thereof as determined pursuant to Section 3.16 of the Loan Agreement
(hereinafter identified)), the undersigned, VIRBAC CORPORATION, a Delaware
corporation (formerly known as Agri-Nutrition Group Limited), PM RESOURCES,
INC., a Missouri corporation, ST. JON LABORATORIES, INC., a California
corporation, FRANCODEX LABORATORIES, INC., a Kansas corporation, VIRBAC AH,
INC., a Delaware corporation and DELMARVA LABORATORIES, INC., a Virginia
corporation (collectively, the "Borrowers"), hereby jointly and severally
promise to pay to the order of FIRST BANK, a Missouri state banking corporation
("Bank"), the principal sum of Twenty Million Dollars ($20,000,000.00), or such
lesser sum as may then be outstanding hereunder. The aggregate principal amount
which Bank shall be committed to have outstanding hereunder at any one time
shall not exceed the lesser of (i) Twenty Million Dollars ($20,000,000.00), or
(ii) the "Borrowing Base" (as defined in the Loan Agreement (as hereinafter
defined)), which amount may be borrowed, paid, reborrowed and repaid, in whole
or in part, subject to the terms and conditions hereof and of the Loan Agreement
hereinafter identified.

      Borrowers further jointly and severally promise to pay to the order of
Bank interest on the principal amount from time to time outstanding hereunder
prior to maturity from the date disbursed until paid at the rate or rates per
annum required by the Loan Agreement. All accrued and unpaid interest with
respect to each principal disbursement made hereunder shall be payable on the
dates set forth in Section 3.6 of the Loan Agreement and at the maturity of this
Note, whether by reason of acceleration or otherwise. After the maturity of this
Note, whether by reason of acceleration or otherwise, interest shall accrue and
be payable on demand on the entire outstanding principal balance hereunder until
paid at a rate per annum equal to Three and One-Half Percent (3.50%) over and
above the Prime Rate, fluctuating as and when said Prime Rate shall change. All
payments hereunder (other than prepayments) shall be applied first to the
payment of all accrued and unpaid interest, with the balance, if any, to be
applied to the payment of principal. All prepayments hereunder shall be applied
solely to the payment of principal.

      All payments of principal and interest hereunder shall be made in lawful
currency of the United States in Federal or other immediately available funds at
the office of Bank situated at 135 North Meramec, Clayton, Missouri 63105, or at
such other place as the holder hereof shall designate in writing. Interest shall
be computed on an actual day, 360-day year basis.

      Bank may record the date and amount of all loans and all payments of
principal and interest hereunder in the records it maintains with respect
thereto. Bank's books and records showing the account between Bank and Borrowers
shall be admissible in evidence in any action or proceeding and shall constitute
prima facie proof of the items therein set forth.

      This Note is the Note referred to in that certain Credit Agreement dated
as of September 7, 1999 made by and between Borrowers and Bank (as the same may
from time to time be amended, the "Loan Agreement"), to which Loan Agreement
reference is hereby made for a statement of the terms and conditions upon which
the maturity of this Note may be accelerated, and for other terms and
conditions, including prepayment, which may affect this Note. All capitalized
terms used herein and not otherwise defined shall have the meanings assigned to
such terms in the Loan Agreement.

      This Note is secured by that certain Security Agreement dated as of May
14, 1998 executed by Virbac Corporation in favor of Bank, by that certain
Security Agreement dated as of May 14, 1998 and executed by PM Resources, Inc.
in favor of Bank, by that certain Security Agreement dated as of May 14, 1998
executed by St. JON

                                     - 17 -
<PAGE>

Laboratories, Inc. in favor of Bank, by that certain Security Agreement dated as
of September 7, 1999 and executed by Virbac AH, Inc. in favor of Bank, by that
certain Security Agreement dated as of September 7, 1999 executed by Francodex
Laboratories, Inc. in favor of Bank and by that certain Security Agreement dated
as of September ___, 2003 executed by Delmarva Laboratories, Inc. in favor of
Bank (as the same may from time to time be amended, the "Security Agreements"),
to which Security Agreements reference is hereby made for a description of the
security and a statement of the terms and conditions upon which this Note is
secured.

      This Note is also secured by that certain Deed of Trust and Security
Agreement dated September 9, 1993 and executed by PM Resources, Inc. in favor of
Katherine D. Knocke, as trustee for Bank and by that certain Deed of Trust and
Security Agreement dated September 3, 2003 executed by Virbac Corporation in
favor of David F. Weaver, as trustee for Bank (as the same may from time to time
be amended, the "Deeds of Trust"), to which Deeds of Trust reference is hereby
made for a description of the security and a statement of the terms and
conditions upon which this Note is secured.

      This Note is also secured by that certain Agreement of Pledge dated as of
September 7, 1999 and executed by Virbac Corporation in favor of Bank and by
that certain Agreement of Pledge dated as of September 7, 1999 and executed by
Virbac AH, Inc. in favor of Bank (collectively, as the same may from time to
time be amended, the "Pledge Agreements"), to which Pledge Agreements reference
is hereby made for a description of the additional security and a statement of
the terms and conditions upon which this Note is further secured.

      This Note is also secured by that certain Patent, Trademark and License
Security Agreement dated as of September 3, 2003 and executed by Virbac
Corporation in favor of Bank, by that certain Patent, Trademark and License
Security Agreement dated as of September 3, 2003 and executed by Virbac AH, Inc.
in favor of Bank and by that certain Patent, Trademark and License Security
Agreement dated as of September 3, 2003 and executed by Delmarva Laboratories,
Inc. in favor of Bank (collectively, as the same may from time to time be
amended, the "IP Security Agreements "), to which IP Security Agreements
reference is hereby made for a description of the additional security and a
statement of the terms and conditions upon which this Note is further secured.

      If any of the Borrowers shall fail to make any payment of any principal of
or interest on this Note as and when the same shall become due and payable, or
if an "Event of Default" (as defined therein) shall occur under or within the
meaning of the Loan Agreement, any of the Security Agreements, the Deeds of
Trust or any of the Pledge Agreements, Bank may, at its option, terminate its
obligation to make any additional loans under this Note and Bank may further
declare the entire outstanding principal balance of this Note and all accrued
and unpaid interest thereon to be immediately due and payable.

      In the event that any payment of any principal of or interest on this Note
shall not be paid when due, whether by reason of acceleration or otherwise, and
this Note shall be placed in the hands of an attorney or attorneys for
collection or for foreclosure of any of the Security Agreements, any of the
Deeds of Trust or any of the Pledge Agreements securing payment hereof or for
representation of Bank in connection with bankruptcy or insolvency proceedings
relating hereto, Borrowers jointly and severally promise to pay, in addition to
all other amounts otherwise due hereon, the reasonable costs and expenses of
such collection, foreclosure and representation, including, without limitation,
reasonable attorneys' fees and expenses (whether or not litigation shall be
commenced in aid thereof). All parties hereto severally waive presentment for
payment, demand, protest, notice of protest and notice of dishonor.

                                     - 18 -
<PAGE>

      This Note shall be governed by and construed in accordance with the
internal laws of the State of Missouri.

      This Revolving Credit Note is a renewal, restatement and continuation of
the obligations due Bank as evidenced by a Revolving Credit Note dated September
3, 2003 from Borrower payable to the order of Bank in the maximum principal
amount of $30,000,000.00 (the "Prior Note"), and is not a novation thereof. All
interest evidenced by the Prior Note being amended and restated by this
instrument shall continue to be due and payable until paid.

                                    VIRBAC CORPORATION

                                    By: /s/ David G. Eller
                                       ________________________________________
                                        David G. Eller, President

                                    PM RESOURCES, INC.

                                    By: /s/ David G. Eller
                                       ________________________________________
                                        David G. Eller, President

                                    ST. JON LABORATORIES, INC.

                                    By: /s/ David G. Eller
                                       ________________________________________
                                        David G. Eller, President

                                    VIRBAC AH, INC.

                                    By: /s/ David G. Eller
                                       ________________________________________
                                        David G. Eller, President

                                    FRANCODEX LABORATORIES, INC.

                                    By: /s/ David G. Eller
                                       ________________________________________
                                        David G. Eller, President

                                    DELMARVA LABORATORIES, INC.

                                    By: /s/ David G. Eller
                                       ________________________________________
                                        David G. Eller, President

                                     - 19 -

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