Document:

Exhibit 10.6

 

SUPPLY AGREEMENT

 

This Supply Agreement (this “Agreement”)
is made and entered into as of this 2 day of February 2022, (the “Effective Date”), by and between Parazero Technologies
Ltd., an Israeli private company, having a place of business at Dov Hoz 30 Kiryat Ono, Israel (“Parazero”) and
Delta Drone International Ltd (ACN 618 678 701), a company organized under the laws of Australia, having a place of business at
Level 27, 101 Collins Street, Melbourne VIC 3000 (the “Delta”) (each shall also be referred to as a “Party”
and collectively the “Parties”).

 

		Whereas,	L.I.A Pure Capital Ltd. and additional entities on its behalf (collectively, “Pure”)
and Delta entered into Share Purchase Agreement dated January 28, 2022 (the “SPA”), under which inter alia Pure
purchased 100% of the issued and outstanding share capital of Parazero; and

 

		Whereas,	Parazero is the developer, manufacturer and seller of commercial products as listed under Exhibit
A attached hereto (the “Product/s”);

 

		Whereas,	According to the SPA, Delta is to contract Parazero for the supply to Delta of the Products, subject to
the terms and conditions herein,

 

Now,
Therefore, in consideration of the terms, conditions and covenants herein contained, the parties hereto agree as follows:

 

1. Definitions
and Interpretations

 

		1.1	The preamble to this Agreement and the Exhibits attached hereto form an integral part hereof. In the event
of any contradiction between the provisions of this Agreement and any of the provisions of the Exhibits, the provisions of this Agreement
shall prevail.

 

		1.2	The headlines and captions in this Agreement are for convenience of reference only and shall not define,
limit or otherwise affect any of the terms or provisions hereof.

 

     

     

    

 

2. Scope
of Agreement

 

Notwithstanding any agreement and other
provisions to which Parazero is a party to, Parazero shall grant Delta and its subsidiaries (hereinafter collectively referred to as “Delta”)
for the Term (as such term is defined below) the right to purchase directly from Parazero, or through any other entity or third-party
on behalf of Parazero, all Products that are actually sold by Parazero in the relevant territory for Delta’s use and the use of
specific entities associated to Delta including Delta Drone SA (but not the resale), on the drones operated by the Delta and the agreed
associated entities for their business operations, according to the standard terms and conditions of Parazero (including with respect
to and without limitations, its standard warranty, supply methods and timing, etc.), and the current price list attached hereto as Exhibit
B, as may change from time to time, provided such changes apply to all other Parazero customers. Nothing contained herein shall
be deemed as Delta’s obligation to purchase any quantity of Products or at all or that a purchase of a products will be for a minimum
dollar amount. Nothing herein shall prohibit Parazero from appointing representatives, agents, distributors etc., for the Products in
any territory whatsoever, including on an exclusive basis and Delta understands that in the event that any such third party is appointed
by Parazero, all sales of Products may be performed through such third party and not Parazero, provided that in such event Delta shall
in any event purchase the Products from such party for the same prices set forth in Exhibit B (as may change from time to time, provided
such changes apply to all other Parazero customers) and if for any reason or cause the sale shall not take place, Delta shall be entitled
to purchase such Products directly from the Company.

 

3. Payment,
Purchase Orders and Delivery

 

		3.1	Payment for any Products will be paid by Delta 30 days after receiving a validly issued tax invoice, issued
by Parazero.

 

		3.2	All sums payable by Delta under this Agreement are exclusive of VAT which shall be added to each payment
according to applicable law.

 

		3.3	Delta shall be entitled to withhold and deduct at source any tax payment required to be withheld at source
under the applicable tax laws with respect to any payment hereunder, unless provided in advance with an authorization issued by the relevant
tax authority to do otherwise.

 

		3.4	All purchase orders shall be forwarded in writing by Delta to Parazero.

 

		3.5	During the Term, Delta shall provide Parazero on a timely basis for each calendar quarter during the term
of this Agreement a rolling, non-binding, quarterly forecast of orders for the Products for the next 12 months. These forecasts will be
updated at least every 3 months, and sooner and where possible, if a moderate market change occurs, that impacts the sales forecast and
production schedule.

 

		3.6	Within 30 business days of receipt of purchase order, Parazero shall send the Delta an invoice detailing
the estimated date of dispatch of the Products and the total price of the order. Payment shall be made within 30 days as of the invoice
date.

 

		3.7	Delivery of the Product by Parazero to Delta shall be made in accordance with terms of shipment, to be
agreed upon in advance by Parazero and Delta.

 

		3.8	Immediately following dispatch of the Products, Parazero shall inform Delta thereof and shall provide
Delta with details of the marine shipping company, B/L and final documentation of the shipment (including packing list and invoice).

 

    2

     

    

 

4. Term
and Termination

 

		4.1	This Agreement shall commence upon the Effective Date and shall remain in full force and for a period
of 60 months thereafter (the “Term”).

 

		4.2	Either Party may terminate this Agreement following the occurrence of any one of the following events,
by a thirty (30) days prior written notice to the other Party, and provided such Party failed to cure such event within the notice period,
the termination will take an immediate effect:

 

		4.2.1	The commencement by the other Party of any liquidation proceedings or the adoption of a winding up resolution
by the other Party;

 

		4.2.2	The appointment of a temporary or permanent receiver, liquidator, trustee or administrator to the other
Party, its business or property, entirely or in part, in a final and non-applicable court order provided that such receiver, liquidator,
trustee or administrator has not been removed within forty five (45) days of its appointment.

 

		4.2.3	Delta assigns any of its obligations to any third party without the prior written approval from Parazero,
which shall be provided according to Parazero’s sole discretion.

 

		4.2.4	Each Party shall have the right, without prejudicing its other rights at law, to terminate this Agreement
upon prior written notice if Delta or Parazero commits a breach of this Agreement and, despite written demand to amend the breach, has
not done so within until the lapse of the above thirty (30) days prior written notice.

 

		4.3	Parties specifically agree that, upon termination of this Agreement), neither party shall be entitled
to any compensation and/or payment of any kind, including for expenses incurred by such party in the course of this Agreement, loss of
profits, loss of business, income or savings, or any other consequential or incidental damage or loss, incurred in respect of its appointment
herein.

 

		4.4	Termination of this Agreement for any cause shall not release either Party from any duties that are intended
by their nature to survive and/or are expressly designated in this Agreement as surviving termination.

 

    3

     

    

 

5. Proprietary
Rights

 

		5.1	Delta acknowledges that Parazero is the exclusive owner of all intellectual property rights, including,
inter alia, any and all trademarks, trade-names, copyrights and all other proprietary rights in and to the Products, including, but not
limited to, any revisions, corrections, modifications, enhancements, upgrades and/or updates, and any documentation relating thereto (“IP
Rights”). Nothing in this Agreement shall constitute a waiver of Parazero’s IP Rights under any law or be deemed as a
transfer of any IP Rights to Delta. Delta acknowledges that the Product/s, whether separate, combined or integrated with any other products,
is the sole property of Parazero and that Delta shall not obtain any interest of any kind in the Products or any part thereof by or through
this Agreement. Delta shall notify Parazero of any infringements or alterations of the Products that comes to Delta’s attention
and shall assist Parazero, at Parazero’s cost in any prosecutions that Parazero may undertake. Delta shall immediately advise Parazero
of any legal notices served on Delta that may reasonably be anticipated to affect Parazero or its proprietary rights.

 

		5.2	Delta acknowledges that the trademarks, trade-names, copyrights and service marks used by Parazero in
relation to the Products are the sole property of Parazero. Delta agrees that it shall not hold itself out as having acquired any proprietary
rights to any trade name, trademark, or service mark of Parazero by virtue of its use thereof.

 

		5.3	Title to the Products and IP Rights of the Products and any updates/upgrades or further modifications
thereto shall remain with Parazero at all times. Delta has no right to reproduce the Products or any part thereof.

 

		5.4	Any updates and/or upgrades provided by Parazero to Delta in the future shall be deemed incorporated into
the definition of the Products and shall be deemed to be Supplier’s property.

 

		5.5	Delta shall not reverse engineer, change, enhance, apply improvements or otherwise modify the Products
(or any part thereof) in any manner whatsoever, without Parazero’s prior written approval or permit such actions by third parties.

 

6. Warranty,
Disclaimer, Limitation of Liability

 

		6.1	The limited warranty provided by Parazero to Delta in respect of the Products under this Agreement shall
be Parazero’s standard warranty as shall be in effect from time to time. Other than set forth in the standard warranty, Parazero
makes no warranties, representations or guarantees that operation of the Products shall be uninterrupted or error free. Parazero’s
sole liability is that the Products shall comply with its specifications and configurations.

 

		6.2	Any warranty made by Delta to its customers or any third parties is made by Delta alone and shall not
bind Parazero or be deemed or considered as having been made by Parazero and service of any such warranty shall be the sole responsibility
of Delta. Nothing in this Agreement is or shall be construed as: (i) any warranty or representation by Parazero that anything made, used,
sold or otherwise disposed of under the rights granted pursuant to this Agreement is or will be free from infringement of patents, copyrights
and other rights of third parties; or (ii) an obligation on the part of Parazero to bring or prosecute actions or suits against third
parties for infringement.

 

    4

     

    

  

		6.3	EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PRODUCTS ARE SOLD HEREUNDER “AS IS”.
PARAZERO MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

		6.4	Parazero shall not bear any liability, whether based on contract, torts (including negligence) or any
other legal theory, for incidental, consequential, indirect, special or punitive damages of any kind, or for loss of revenue or profits,
loss of business or any other damages that are not direct, arising out of or in connection with this Agreement or the performance or breach
hereof. Such limitation of liability shall also apply to Parazero’s employees, directors, officers, agents or representatives.

 

7. Miscellaneous

 

		7.1	Independent Contractors. The relationship between the Parties is solely that of independent contractors.
Neither Party has the authority to make any agreement or to incur any liability in the name or on behalf of the other Party.

 

		7.2	Assignment. Neither Party may assign or transfer this Agreement or any rights or obligations hereunder,
in whole or in part, to any party without the other Party’s prior written consent.

 

		7.3	Entire Agreement. The terms and provisions contained in this Agreement and all Annexes thereto constitute
the entire agreement between the Parties and shall supersede all previous communications, oral or written, between the parties hereto
with respect to the subject matter hereof.

 

		7.4	Modification of Agreement. No modification, amendment or correction to this Agreement shall be binding
upon either of the Parties hereto unless in writing and signed by the duly authorized representatives of both Parties.

 

		7.5	Waiver. The failure of any Party at any time to require the strict performance of any provision hereof
or to enforce any right with respect thereto shall in no manner affect the right of such Party at a later time to enforce the same and
shall in no way be construed as a waiver of such provision or rights, unless specifically done so in writing.

 

		7.6	Governing Law and Forum. This Agreement will be governed by the laws of the State of Israel without reference
to its conflict of laws principles and shall be subject to the exclusive jurisdiction of the competent courts of Tel-Aviv, to the exclusion
of the jurisdiction of any other court. However, each party retains the right to file for interim and/or injunctive relief in any relevant
jurisdiction.

 

    5

     

    

 

		7.7	Notices. Any notice provided pursuant to this Agreement shall be in writing and sent by registered mail,
courier, facsimile or e-mail, to the addresses and numbers hereunder. All notices and other communications hereunder shall be deemed to
have been delivered one business day after the date personally delivered by hand, facsimile or e-mail, or ten business days after mailing
by registered mail (return receipt requested).

 

If to Parazero:

 

ParaZero Technologies Ltd.

30 Dov Hoz St.

Kiryat Ono, Israel

e-mail: contact@parazero.com

Attention: Boaz Shetzer

 

with a copy (which shall not constitute notice) to:

 

Shibolet & Co., Law Offices

4 Berkowitz St.

Tel Aviv, Israel

Email: o.manor@shibolet.com

Attention: Ofer Manor, Adv.

 

If to Delta:

 

Delta Drone International Ltd.

Level 27, 101 Collins Street,

Melbourne VIC 3000

e-mail: stephen.buckley@dlti.com.au

Attention: Stephen Buckley

 

with a copy (which shall not constitute notice) to:

 

Shibolet & Co., Law Offices

4 Berkowitz St.

Tel Aviv, Israel

Email: o.manor@shibolet.com

Attention: Ofer Manor, Adv.

 

[Signature page to follow]

 

    6

     

    

 

IN WITNESS WHEREOF, the Parties hereto have
executed this Agreement on the date first above written.

 

	/s/ Eden Attias	 
	ParaZero Ltd.	 
	 	 
	By:	Eden Attias	 
	 	 
	Title:	Director	 

 

	EXECUTED by Delta Drone International Ltd	)	 
	(ACN 618 678 701) in accordance with section	)	 
	127(1) of the Corporations Act 2001	)	 

 

	/s/ Eden Attias	 	/s/ Christopher Clark	 
	Signature of Director	 	Signature of Director	 
	 	 	 	 
	Eden Attias	 	Christopher Clark	 
	Name of Director	 	Name of Director	 

 

[Signature Page to Supply Agreement]

 

     

     

    

 

Exhibit A

 

	#	 	Product	 	Description
	 	 	 	 	 
	1	 	SafeAir Phantom	 	Drone safety system for DJI Phantom 4 series
	 	 	 	 	 
	2	 	SafeAir Mavic	 	Drone safety system for DJI Mavic Pro and Mavic Pro 2 series
	 	 	 	 	 
	3	 	SafeAir 2G	 	Generic drone safety system for drones with a maximum take-off weight of up to 4kg
	 	 	 	 	 
	4	 	SafeAir Pro	 	Generic drone safety system for drones with a take-off weight of 4kg – 100kg
	 	 	 	 	 
	5	 	SafeAir M-200 Pro	 	Drone safety system for DJI Matrice 200 series
	 	 	 	 	 
	6	 	SafeAir M-300 Pro	 	Drone safety system for DJI Matrice 300 series
	 	 	 	 	 
	7	 	SafeAir M-600 Pro	 	Drone safety system for DJI Matrice 600 series
	 	 	 	 	 
	8	 	SAP	 	SmartAir Pro, Flight computer for drone safety system for drones of over 4kg
	 	 	 	 	 
	9	 	Professional Kit	 	An add-on for SafeAir Phantom/ Mavic to comply with ASTM F3322-18 standard and FAA regulation
	 	 	 	 	 
	10	 	ParaZero RC 2.0	 	Parazero remote controller for manual triggering of the parachute system.  2nd generation
	 	 	 	 	 
	11	 	SafeAir 350	 	Parachute launcher for up to 350kg

 

     

     

    

 

Exhibit B

 

	#	 	Product	 	Price (USD)	 
	 	 	 	 	 	 
	1	 	SafeAir Phantom	 	$	499	 
	 	 	 	 	 	 	 
	2	 	SafeAir Mavic	 	$	499	 
	 	 	 	 	 	 	 
	3	 	SafeAir 2G	 	$	750	 
	 	 	 	 	 	 	 
	4	 	SafeAir Pro	 	$	4,800	 
	 	 	 	 	 	 	 
	5	 	SafeAir M-200 Pro	 	$	3,400	 
	 	 	 	 	 	 	 
	6	 	SafeAir M-300 Pro	 	$	3,800	 
	 	 	 	 	 	 	 
	7	 	SafeAir M-600 Pro	 	$	3,800	 
	 	 	 	 	 	 	 
	8	 	SAP	 	$	1,650	 
	 	 	 	 	 	 	 
	9	 	Professional Kit	 	$	500	 
	 	 	 	 	 	 	 
	10	 	ParaZero RC 2.0	 	$	500	 
	 	 	 	 	 	 	 
	11	 	SafeAir 350	 	$	15,000ex_378979.htm

Exhibit 4.2

 

DESCRIPTION OF THE COMPANY’S SECURITIES REGISTERED

PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

The following is a brief description of the common stock, $0.001 par value per share (the “Common Stock”), of PetMed Express, Inc., a Florida corporation (the “Company”), which is the only security of the Company registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended.

 

Description of Common Stock

 

General

 

The following descriptions of our Common Stock and of certain provisions of Florida law do not purport to be complete and are subject to and qualified in their entirety by reference to our amended and restated articles of incorporation, our amended and restated bylaws and the Florida Business Corporation Act, as amended (the “Florida Act”). The Company has authorized 40,000,000 shares of Common Stock of which as of May 24, 2022, 20,988,237 shares of Common Stock are issued and outstanding. All of our outstanding shares of Common Stock are fully paid and non-assessable. Our Common Stock is listed on the NASDAQ Global Select Market under the symbol “PETS.”

 

Common Stock

 

Holders of the Common Stock have no pre-emptive, redemption, subscription or conversion rights. Each outstanding share of Common Stock is entitled to one vote on all matters submitted to a vote of the Company's shareholders. Subject to the dividend rights of the holders of any outstanding preferred stock, each share of Common Stock is entitled to participate equally with respect to dividends as may be declared by the board of directors out of funds legally available therefor. In the case of voluntary or involuntary liquidation, distribution or sale of assets, dissolution, or winding up of the Company, holders of our Common Stock are entitled to receive a pro rata share of the amount distributed after provisions for payment of all debts, other liabilities and any liquidation preferences of outstanding preferred stock. The Florida Act also may affect the terms of these securities.

 

Limitations on Rights of Holders of Common Stock – Preferred Stock

 

The rights of holders of Common Stock may be materially limited or qualified by the rights of holders of preferred stock that we may issue in the future. Set forth below is a description of the Company’s authority to issue preferred stock and the possible terms of that stock.

 

Our amended and restated articles of incorporation authorizes our board of directors, without further shareholder action, to provide for the issuance of up to 5,000,000 shares of preferred stock, with a par value of $.001 per share, in one or more series, and to fix the designations, preferences, conversion rights, cumulative, relative, participating, optional or other rights, including voting rights, qualifications, limitations or restrictions, redemption and liquidation preferences of each of these series. Of the preferred stock, 250,000 shares have been designated Convertible Preferred Stock of which as of May 24, 2022, 2,500 shares of Convertible Preferred Stock are issued and outstanding. We may amend from time to time our amended and restated articles of incorporation to increase the number of authorized shares of preferred stock. Any such amendment would require the approval of the holders of a majority of our shares of Common Stock entitled to vote.

 

Shareholder Action by Written Consent and Special Meeting

 

Our amended and restated bylaws provide for action by our shareholders without a meeting with the written consent of shareholders holding the number of shares necessary to approve such action if it were taken at a meeting at which all shares entitled to vote thereon were present. Our amended and restated bylaws also provide that shareholder action can be taken at an annual meeting of the shareholders or at a special meeting which may be called, for any purpose or purposes, by the board of directors or the person or persons authorized to do so by the board of directors and must be called by the Secretary if the holders of not less than ten percent of all votes entitled to be cast on any issue proposed to be considered at such special meeting sign, date and deliver to the Secretary one or more written demands for a special meeting, describing the purpose or purposes for which it is to be held.

 

 

 

 

Authorized but Unissued Shares 

 

Our authorized but unissued shares of Common Stock and preferred stock are available for future issuance without shareholder approval, subject to the requirements of applicable law or regulation, including any listing requirement of the principal stock exchange on which our Common Stock is then listed. These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence of authorized but unissued shares of Common Stock and preferred stock could render more difficult or discourage an attempt to obtain control of a majority of our Common Stock by means of a proxy contest, tender offer, merger or otherwise.

 

Board Authority to Amend Bylaws 

 

Under our amended and restated bylaws, our board of directors has the authority to adopt, amend or repeal the bylaws without the approval of our shareholders unless the Florida Act reserves the power to amend a particular bylaw provision exclusively to the shareholders.

 

Certain Anti-Takeover provisions of Florida Law and our Bylaws

 

Florida Business Corporation Act

 

We are subject to certain anti-takeover provisions that apply to public corporations under Florida law. Pursuant to Section 607.0901 of the Florida Act, a publicly held Florida corporation may not engage in a broad range of business combinations or other extraordinary corporate transactions with an “interested shareholder” without the approval of the holders of two-thirds of the voting shares of such corporation (excluding shares held by the interested shareholder), unless:

 

	 	
			●

				
			the transaction is approved by a majority of disinterested directors before the shareholder becomes an interested shareholder;

			

 

	 	
			●

				
			the interested shareholder has owned at least 80% of the corporation’s outstanding voting shares for at least five years preceding the announcement date of any such business combination;

			

 

	 	
			●

				
			the interested shareholder is the beneficial owner of at least 90% of the outstanding voting shares of the corporation, exclusive of shares acquired directly from the corporation in a transaction not approved by a majority of the disinterested directors; or

			

 

	 	
			●

				
			the consideration paid to the holders of the corporation’s voting stock is at least equal to certain fair price criteria.

			

 

An “interested shareholder” is defined as a person who together with affiliates and associates beneficially owns more than 10% of a corporation’s outstanding voting shares. We have not made an election in our amended and restated articles of incorporation to opt out of Section 607.0901.

 

In addition, we are subject to Section 607.0902 of the Florida Act which prohibits the voting of shares in a publicly held Florida corporation that are acquired in a “control share acquisition” unless (i) our board of directors approved such acquisition prior to its consummation or (ii) after such acquisition, in lieu of prior approval by our board of directors, the holders of a majority of the corporation’s voting shares, exclusive of shares owned by officers of the corporation, employee directors or the acquiring party, approve the granting of voting rights as to the shares acquired in the control share acquisition. A “control share acquisition” is defined as an acquisition that immediately thereafter entitles the acquiring party to 20% or more of the total voting power in an election of directors.

 

These statutory provisions may prevent takeover attempts that might result in a premium over the market price for shares of our common stock.

 

 

 

 

Advance Notice of Shareholder Proposals or Nominations

 

Our amended and restated bylaws provide that shareholders at an annual meeting may only consider proposals or nominations (i) specified in the notice of meeting given by or at the direction of the Board, (ii) properly brought before the meeting by or at the direction of the Board or (iii) otherwise properly brought before the meeting by a shareholder of the Company who was a shareholder of record on (a) the date of the giving of timely notice to our Corporate Secretary and (b) the record date for the meeting, who is entitled to vote at the meeting and who has given our Corporate Secretary timely written notice, in proper form. In addition to certain other applicable requirements, for business to be properly brought before an annual meeting by a shareholder, such shareholder generally must have given notice thereof in proper written form to our Corporate Secretary not less than 90 days nor more than 120 days prior to the anniversary date of the immediately preceding annual meeting of shareholders. Our amended and restated bylaws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed or may discourage or defer a potential acquiror from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of us.

 

Proxy Access

 

Our By-Laws permit a shareholder (or a group of up to 20 shareholders) owning three percent (3%) or more of our common stock continuously for at least three years to nominate and include in our proxy statement candidates for up to the greater of 2 of 20% of our Board. To be timely, a notice of a nomination under our proxy access bylaw provisions must be delivered to or mailed and received at the principal executive offices of the Company not less than one-hundred twenty (120) days nor more than one-hundred fifty (150) days prior to the anniversary of the date that the Company first distributed its proxy statement to shareholders for the immediately preceding annual meeting of shareholders. The notice must contain certain information specified in our amended and restated bylaws.

 

Transfer Agent and Registrar

 

The transfer agent and registrar for the Company's common stock is Continental Stock Transfer & Trust Company.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}]]