Document:

<PAGE>   1
                                                                    Exhibit 10.1

                             SUBSCRIPTION AGREEMENT

         THIS SUBSCRIPTION AGREEMENT (the "Agreement") is made as of this 22nd
day of November, 2000, by and among PETMED EXPRESS, INC., a Florida corporation
(the "Company"), and TRICON HOLDINGS, LLC, a Florida limited liability company
(the "Investor").

                              W I T N E S S E T H:
                               - - - - - - - - - -

         WHEREAS, the Investor desires to subscribe for, purchase and acquire
from the Company and the Company desires to sell and issue to the Investor Ten
Million (10,000,000) shares (the "Shares") of the Company's common stock, par
value $0.001 per share (the "Common Stock") on the terms set forth herein, and a
warrant (the "Warrant") to acquire Three Million (3,000,000) shares of Common
Stock (the "Warrant Shares") on the terms set forth in the Warrant.

         NOW, THEREFORE, for and in consideration of the mutual premises
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. PURCHASE AND SALE OF THE SHARES AND THE WARRANT. Upon the terms and
conditions and subject to the provisions of this Agreement, the Investor
subscribes for and agrees to purchase and acquire from the Company and the
Company agrees to sell and issue to the Investor the Shares and the Warrant, in
the manner set forth in Section 2 hereof, for the aggregate purchase price of
Two Million Dollars ($2,000,000) (the "Purchase Price").

         2. CLOSING. The closing of the transactions contemplated by this
Agreement (the "Closing") shall take place immediately following the execution
of this Agreement at the offices of Stearns Weaver Miller Weissler Alhadeff &
Sitterson, P.A., or at such other time and place as the parties may agree upon.
At the Closing:

                  (a) the Investor shall deliver to the Company (i) Five Hundred
Thousand Dollars ($500,000) by wire transfer and (ii) a promissory note in the
amount of One Million Five Hundred Thousand Dollars ($1,500,000) substantially
in the form attached hereto as EXHIBIT A;

                  (b) the Company shall deliver to the Investor (i)
certificates, registered in the name(s) designated by the Investor, representing
Two Million Five Hundred Thousand (2,500,000) shares of Common Stock, (ii) a
Warrant to acquire Three Million (3,000,000) shares of Common Stock at an
exercise price of Thirty-Three Cents ($0.33) per share and (iii) copies of
certificates, registered in the name(s) designated by the Investor, representing
Seven Million Five Hundred Thousand (7,500,000) shares of Common Stock (the
original certificates which such copies of certificates represent shall be
delivered to Atlas Pearlman, P.A., as escrow agent, to be held in escrow in
accordance with the terms and conditions of that certain Escrow Agreement, by
and

<PAGE>   2

between the Investor, the Company and Atlas Pearlman, P.A., as escrow agent, the
form of which is attached hereto as EXHIBIT B) (such shares of Common Stock, the
"Escrow Shares"); and

                  (c) each party shall deliver to the other party a fully
executed original of the Escrow Agreement, the Warrant and that certain
Registration Rights Agreement by and between the Investor and the Company
relating to the Shares and the Warrant (the "Registration Rights Agreement").
The form of Warrant is attached to this Agreement as EXHIBIT C. The form of
Registration Rights Agreement is attached to this Agreement as EXHIBIT D.

During the period which any Escrow Shares are held in escrow, the Investor shall
have all of the rights of a shareholder with respect to the Escrow Shares,
including, without limitation, that the Investor shall be entitled to receive
dividends and distributions paid with respect to the Escrow Shares and that the
Investor shall be entitled to exercise full voting rights with respect to the
Escrow Shares.

         3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. In order to induce
the Investor to enter into this Agreement, the Company hereby makes the
representations and warranties set forth below to the Investor.

                  (a) ORGANIZATION, GOOD STANDING AND QUALIFICATION. The Company
is a corporation duly organized and validly existing under the laws of the State
of Florida whose status is active. The Company has all requisite corporate
right, power and authority to enter into this Agreement and the Registration
Rights Agreement and to consummate the transactions contemplated hereby and
thereby. The Company is duly qualified to transact business as a foreign
corporation and is in good standing in each jurisdiction in which the failure to
so qualify would have a material adverse effect on its business or properties.

                  (b) AUTHORIZATION. All corporate action on the part of the
Company, and its officers, directors and shareholders necessary for (1) the
authorization, execution and delivery by the Company of this Agreement and the
Registration Rights Agreement, (2) the performance of all obligations of the
Company hereunder and thereunder, and (3) the authorization, sale and delivery
of the Shares and the Warrant has been taken. This Agreement and the
Registration Rights Agreement each constitute valid and legally binding
obligations of the Company, enforceable in accordance with their respective
terms, except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, and other laws of general application affecting
enforcement of creditors' rights generally, (ii) as limited by laws relating to
the availability of specific performance, injunctive relief, or other equitable
remedies, and (iii) to the extent the indemnification provisions contained in
the Registration Rights Agreement may be limited by applicable federal or state
securities laws.

                  (c) NO VIOLATION OR CONFLICT. The execution, delivery and
performance of this Agreement and the Registration Rights Agreement by the
Company and the consummation by the Company of the transactions contemplated
hereby and thereby (1) do not and will not violate or conflict with any
provision of law or regulation, or any rule, ruling, interpretation, writ,
order,

                                      -2-
<PAGE>   3

judgment or decree of any court or governmental or regulatory authority, or any
provision of the Articles of Incorporation or Bylaws of the Company; and (2) do
not and will not, with or without the passage of time or the giving of notice,
result in the breach of, or constitute a default, cause the acceleration of
performance or require any consent under, or result in the creation of any lien
or other encumbrance upon any property or assets of the Company pursuant to any
instrument or agreement to which the Company is a party or by which the Company
may be bound or affected, other than instruments or agreements as to which
consent shall have been obtained at or prior to the Closing, each of which
instruments or agreements is listed on SCHEDULE 3(C) hereto.

                  (d) CONSENT OF GOVERNMENTAL AUTHORITIES. No consent, approval
or authorization of, or registration, qualification or filing with any United
States or foreign, federal, state or local governmental or regulatory authority,
is required to be made by the Company in connection with the execution, delivery
or performance of this Agreement and the Registration Rights Agreement by the
Company, or the consummation by the Company of the transactions contemplated
hereby and thereby, other than the filing of a registration statement(s) to be
declared effective by the Securities and Exchange Commission ("SEC") as
contemplated by the Registration Rights Agreement.

                  (e) CORPORATE RECORDS. The stock records and minute books of
the Company (true, correct and complete copies of which the Company has
previously delivered to the Investor) fully reflect all issuances, transfers and
redemptions of the Company's capital stock, correctly show the total number of
shares of the Company's capital stock issued and outstanding on the date hereof
and contain true, correct and complete copies of the Company's Articles of
Incorporation and Bylaws, in each case as amended and currently in force. Such
minute books also contain complete and accurate records of all meetings and
other corporate actions of the board of directors, committees of the board of
directors, incorporators and shareholders of the Company from its date of
incorporation to the date hereof. All matters requiring the authorization or
approval of the board of directors, a committee of the board of directors, the
incorporators or the shareholders of the Company have been duly and validly
authorized and approved by them.

                  (f) CAPITALIZATION.

                           (1) The authorized capital stock of the Company
consists of Twenty-Five Million (25,000,000) shares of capital stock, of which:

                                    (A) Five Million (5,000,000) shares are
designated as preferred stock, par value $0.001 per share (the "Preferred
Stock"), of which 2,500 shares of Convertible Preferred Stock are issued and
outstanding; and

                                    (B) Twenty Million (20,000,000) shares are
designated as Common Stock, of which 6,385,010 shares are issued and outstanding
(prior to giving effect to the issuance of the Shares).

                                      -3-
<PAGE>   4

                           (2) The outstanding shares of Preferred Stock, Common
Stock and warrants and options to purchase shares of Common Stock are owned by
the shareholders and warrant and option holders, respectively, in the numbers
specified in SCHEDULE 3(F)(2) hereto (prior to giving effect to the issuance of
the Shares and the Warrant). The Shares (after giving effect to the issuance of
the Shares and the Warrant) will represent approximately 43.23% of all
outstanding shares of Common Stock of the Company on a fully diluted basis. The
Shares and the Warrant Shares (after giving effect to the issuance of the Shares
and the Warrant and to the exercise of the Warrant and the issuance of the
Warrant Shares) will represent approximately 56.23% of all outstanding shares of
Common Stock of the Company on a fully diluted basis.

                           (3) All outstanding shares of the Company's capital
stock have been duly authorized, are validly issued and outstanding, and are
fully paid and nonassessable. No securities issued by the Company from its date
of incorporation to the date hereof were issued in violation of the securities
laws of any jurisdiction or the preemptive rights of any person or entity. There
are no dividends which have accrued or been declared but are unpaid on the
capital stock of the Company. All taxes of any nature or kind required to be
paid in connection with the issuance and any transfers of the Company's capital
stock have been paid. All authorizations required to be obtained from or
registrations required to be effected with any person or entity in connection
with the issuances of securities of the Company from the date of its
incorporation to the date hereof have been obtained or effected and all
securities of the Company have been issued and are held in accordance with the
provisions of all applicable securities and other laws, rules and regulations.

                           (4) Except for (a) outstanding options to purchase
1,096,500 shares of Common Stock under various stock option agreements executed
prior to the establishment of the Company's 1998 Stock Option Plan, (b)
outstanding options to purchase 2,168,000 shares of Common Stock under the
Company's 1998 Stock Option Plan, (c) outstanding warrants to purchase 470,000
shares of Common Stock, (d) 10,125 shares of Common Stock reserved for issuance
upon the conversion of the outstanding Preferred Stock and (e) 832,000 shares of
Common Stock reserved for purchase upon exercise of options to be granted in the
future under the Company's 1998 Stock Option Plan, there are (prior to giving
effect to the issuance of the Shares and the Warrant) no shares of capital stock
or other equity interests of the Company reserved for issuance and no
outstanding: (w) securities or instruments convertible into or exercisable for
any of the capital stock or other equity interests of the Company; (x) options,
warrants, subscriptions or other rights to acquire capital stock or other equity
interests of the Company; (y) debt securities with any voting rights or
convertible into securities with voting rights; or (z) commitments, agreements
or understandings of any kind, including, without limitation, shareholders'
agreement, voting agreements, voting trusts, registration rights agreements,
preemptive rights or employee benefit arrangements, relating to any capital
stock or other equity interests of the Company, or the issuance or repurchase by
the Company of (i) any capital stock or other equity interests of the Company or
(ii) any such securities or instruments convertible into or exercisable for
capital stock or other equity interests of the Company. The Company has no
outstanding stock appreciation, phantom stock rights or any similar rights.

                                      -4-
<PAGE>   5

                           (5) Except as set forth on SCHEDULE 3(F)(5) hereto
and except for the Registration Rights Agreement, the Company has not granted or
agreed to grant any registration rights, including piggyback rights, to any
person or entity.

                           (6) All securities issued by the Company in
connection with this Agreement have been, or prior to their issuance will have
been, duly and validly authorized and, when issued and paid for in accordance
with the terms of this Agreement and the Warrant, will be duly and validly
issued, fully paid and nonassessable.

                  (g) SUBSIDIARIES. The Company does not own or control,
directly or indirectly, any interest in any other corporation, association or
entity, other than the Company's direct ownership of 100% of the issued and
outstanding capital stock of Southeastern Veterinary Exports, Inc., a Florida
corporation, which has no material assets or operations. The Company is not a
participant in any joint venture, partnership or similar arrangement.

                  (h) FINANCIAL STATEMENTS. The Company has previously delivered
to the Investor, true and complete copies of (1) the audited balance sheet of
the Company for the fiscal year ended March 31, 2000 and the related audited
statements of income, cash flows and changes in shareholders' equity of the
Company for the fiscal years ended March 31, 2000 and 1999, including any
related notes and (2) the unaudited balance sheet of the Company as of September
30, 2000 (the "Balance Sheet") and the related unaudited statements of income,
cash flows and changes in shareholders' equity for the nine month periods ended
September 30, 2000 and 1999 (collectively, the "Financial Statements"). All such
Financial Statements (1) have been prepared in accordance with Regulation S-X
promulgated by the SEC, (2) have been prepared in accordance with the books of
account and records of the Company; (3) fairly present and are true, correct and
complete statements in all material respects of the financial condition and the
results of operations of the Company at the dates and for the periods specified
in those statements; and (4) have been prepared in accordance with generally
accepted accounting principles consistently applied with prior periods (subject
in the case of interim statements, to normal non-material year end adjustments
and the absence of notes). Except as clearly disclosed in the Balance Sheet, the
Company has no liabilities, commitments or obligations of any nature whatsoever,
whether accrued, contingent or otherwise or any unrealized or anticipated losses
from any commitments, and there is no basis for assertion against the Company of
any such liability, commitment, obligation or loss, other than (1) liabilities
incurred in the ordinary course of business subsequent to September 30, 2000,
and (2) liabilities not required under generally accepted accounting principles
to be reflected in the Financial Statements, which are not material to the
financial condition or operating results of the Company.

                  (i) LAWS. The Company is in compliance in all material
respects with all applicable United States and foreign federal, state and local
laws, rules, regulations, rulings, interpretations, orders and decrees. Except
as set forth in SCHEDULE 3(I) hereto, the Company has not been charged with any
alleged violation or nonconformity with any United States or foreign federal,
state or local law, rule, regulation, ruling, interpretation, order or decree
and is not subject to any order, writ, injunction or decree against or affecting
the Company or its assets or business.

                                      -5-
<PAGE>   6

                  (j) PERMITS. The Company has all material permits, licenses,
certificates of authority, orders and approvals of, and has made all material
filings, applications and registrations with, all United States or foreign
federal, state or local governmental or administrative agencies or authorities
or regulatory bodies or other persons or entities that are required to be
obtained, maintained or made in order to permit the Company to own its assets
and to carry on its business as presently conducted. All of the foregoing are
current, in good standing and in full force and effect, and, there is no
proceeding or action pending or, to the knowledge of the Company, threatened in
connection with the foregoing.

                  (k) INVESTIGATIONS; LITIGATION. Except as disclosed on
SCHEDULE 3(K) hereto, there is no investigation by any United States or foreign
federal, state or local governmental or administrative agency or authority, or
any action, suit, proceeding or claim pending or, to the knowledge of the
Company, threatened, against or adversely affecting the Company (including,
without limitation, any investigation, action or proceeding with respect to
taxes or products manufactured, sold, marketed or distributed by the Company),
or the assets or business of the Company. Except as disclosed on SCHEDULE 3(K),
neither the Company nor any director, officer, employee or agent of the Company,
in their respective capacities as such, is a party to any, and there are no
pending or, to the knowledge of the Company, threatened, legal, administrative,
arbitral or other proceedings, claims, suits, actions or governmental
investigations of any nature against the Company, or any director, officer,
employee or agent of the Company, in their respective capacities as such, or
involving any property or asset of the Company.

                  (l) SEC FILINGS. The Company has timely filed all forms,
reports and documents required to be filed by it with the SEC since its
incorporation including, without limitation, those forms, reports and documents
required to be filed by it pursuant to the Securities Act of 1933, as amended
(the "Securities Act") or the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), other than, only with respect to its untimely filing, the
Company's Annual Report on Form 10-KSB for the fiscal year ended March 31, 2000
(all such forms, reports and documents, including, without limitation, the Form
10-KSB, collectively, the "SEC Filings"). The Company has previously delivered
to the Investor a true and complete copy of each SEC Filing. Each of the SEC
Filings complies as to form with the applicable requirements of the SEC for such
filing. The SEC Filings, as of the dates they were respectively filed with the
SEC, did not contain any untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

                  (m) INTELLECTUAL PROPERTY. Set forth on SCHEDULE 3(M) hereto
is a list and description of all patents, copyrights, trademarks, servicemarks,
trade dress, trade secrets, logos, domain names, trade names and corporate
names, together with all derivations and combinations thereof and including all
goodwill associated therewith, and all applications, registrations, and renewals
in connection therewith (the "Intellectual Property"). The Intellectual Property
is adequate for the operation of the business of the Company as presently
conducted. The Company is the sole and exclusive owner of all right, title and
interest in and to all of the Intellectual Property and has

                                      -6-
<PAGE>   7

the exclusive right to use and license the same, free and clear of any claim or
conflict with the rights of others. No royalties, honorariums or fees are
payable by the Company to any person or entity by reason of the ownership or use
of any of the Intellectual Property. There have been no claims made or, to the
knowledge of the Company, threatened against the Company asserting the
invalidity, abuse, misuse, or unenforceability of any of the Intellectual
Property, and to the knowledge of the Company, no grounds for any such claims
exist. The Company has not made nor threatened to make any claim of any
violation or infringement by others of its rights in the Intellectual Property,
and to the knowledge of the Company, no grounds for any such claims exist. The
Company has not received any notice that it is in conflict with or infringing
upon the asserted rights of others in connection with the Intellectual Property
and neither the use of the Intellectual Property by the Company nor the
operation of its business is infringing or has infringed upon any rights of
others. To the extent that any item constituting part of the Intellectual
Property has been registered with, filed in or issued by, as the case may be,
any government or other administrative regulatory agency or authority, such
registrations, filings or issuances are listed on SCHEDULE 3(M) hereto and were
duly made and remain in full force and effect. To the extent any of the
Intellectual Property constitutes proprietary or confidential information, the
Company has adequately safeguarded such information from disclosure.

                  (n) REAL PROPERTY; LEASES. SCHEDULE 3(N) hereto describes all
real estate owned or leased by the Company (the "Real Property"). All Real
Property, if owned by the Company, is owned under good and marketable title,
free and clear of all mortgages, liens, loans and encumbrances, except as
disclosed in the Financial Statements and except statutory liens for taxes not
yet due. Except as set forth on SCHEDULE 3(N) hereto, (1) all of the owned Real
Property is free from all special taxes or assessments, except those generally
applicable to other properties in the tax districts in which such Real Property
is located; (2) the Company has the exclusive right of possession of each tract
comprising such Real Property; (3) all improvements on such Real Property and
the operations therein conducted conform in all material respects to all
applicable health, fire, environmental, safety, zoning and building laws, rules
and regulations and all buildings, structures, improvements and fixtures owned,
leased or used by the Company in the conduct of its business conform in all
material respects to (or are otherwise exempt from) all applicable codes and
rules adopted by national and local associations and boards of insurance
underwriters; and (4) all such buildings, structures, improvements and fixtures
are in satisfactory operating condition and repair, normal wear and tear
excepted. All of the leases under which the Company leases any of the Real
Property (the "Leases") are valid, subsisting and in full force and effect and
neither the Company nor, to the knowledge of the Company, any other party
thereto is in material breach or default thereunder and such Leases entitle the
Company to the use and possession of the Real Property purported to be covered
thereby for the terms specified in such Leases.

                  (o) PERSONAL PROPERTY. Except as set forth on SCHEDULE 3(O)
hereto, the Company has good title, free and clear of all liens and other
encumbrances, to each item of machinery, equipment, furniture, fixtures and
other tangible personal property (the "Personal Property") owned by it and holds
valid leaseholds in all of the Personal Property leased by it, and all such
Personal Property leases are valid and enforceable. The Company is not in breach
of or

                                      -7-
<PAGE>   8

default under (and no event has occurred which, with due notice or lapse of time
or both, may constitute such a breach or default under) any lease of any items
of Personal Property leased by it. All items of Personal Property owned or
leased by the Company are in good operating condition and repair, normal wear
and tear excepted. The Real Property leased by the Company and the Personal
Property, taken together, includes all assets, properties, rights and interests
necessary or desirable for the continued operation of the business of the
Company in the ordinary course and as presently conducted.

                  (p) RELATED-PARTY TRANSACTIONS. Except as set forth in
SCHEDULE 3(P) hereto, no employee, officer, director, or, to the knowledge of
the Company, any shareholder, agent or attorney of the Company or any affiliate
or immediate family member of any of the foregoing (1) owns, directly or
indirectly, any interest or has made any loan, advance, commitment or investment
in any person or entity which is a competitor, potential competitor, supplier or
customer of the Company; (2) owns, directly or indirectly, in whole or in part,
any property, asset or right, real, personal or mixed, tangible or intangible
(including, but not limited to, any of the Intellectual Property) which is
utilized in the operation of the business of the Company or is necessary or
desirable to the business of the Company as presently conducted or as
contemplated to be conducted; or (3) has an interest or loan, advance,
commitment or investment in or is, directly or indirectly, a party to any
contract, agreement or other arrangement or relationship pertaining or relating
to the business, operations or assets of the Company.

                  (q) CONTRACTS. The SEC Filings contain true, correct and
complete copies of all contracts, agreements, understandings, covenants,
commitments and other instruments of any kind, whether oral or written, express
or implied, to which the Company is a party or otherwise relating to or
affecting any of the Company's assets, properties or operations, which are
required to be filed with the SEC pursuant to the rules and regulations
promulgated by the SEC (collectively, the "Commitments"). Each Commitment is
valid, binding and enforceable against the parties thereto in accordance with
its terms, and is in full force and effect on the date hereof. The Company has
performed all obligations required to be performed to date under, is not in
default in respect of, any Commitment, and no event has occurred which, with due
notice or lapse of time or both, would constitute such a default. Except as
disclosed on SCHEDULE 3(C) hereto no consent of or notice to third parties is
required relating to any Commitment as a consequence of this Agreement or the
Registration Rights Agreement or the transactions contemplated hereby or
thereby. To the knowledge of the Company, no other party to any Commitment is in
default in respect thereof, and no event has occurred which, with due notice or
lapse of time or both, would constitute such a default. The Company is not a
party to or otherwise bound by an Commitments limiting or restraining it from
engaging or competing in any lines of business or with any person or entity.

                  (r) CHANGES. Since September 30, 2000, there has not been: (1)
any material adverse effect to the assets, properties, financial condition,
operating results or business of the Company (a "Material Adverse Effect"); (2)
any damage, destruction or loss, whether or not covered by insurance, resulting
in a Material Adverse Effect; (3) any waiver by the Company of a valuable right
or of a material debt owed to it; (4) any satisfaction or discharge of any lien,
claim or

                                      -8-
<PAGE>   9

encumbrance or payment of any obligation by the Company, except in the ordinary
course of business and in an amount that is not material to the assets,
properties, financial condition, operating results or business of the Company
(as such business is conducted); (5) any material change or amendment to a
material contract or arrangement by which the Company or any of its assets or
properties is bound or subject; (6) any sale, assignment or transfer of any
Intellectual Property or other intangible assets (other than in the ordinary
course of business); (7) receipt of notice that there has been a loss of, or
material delivery or order cancellation by, any supplier or customer of the
Company; (8) any mortgage, pledge, grant of a security interest in, or lien,
created by the Company, with respect to any of its properties or assets, except
liens for taxes not yet due or payable; (9) any loans or guarantees made by the
Company to or for the benefit of its employees, officers, directors,
shareholders, agents or attorneys or any affiliates or members of the immediate
families of any of the foregoing, other than travel advances and other advances
made in the ordinary course of its business; (10) any amendment to the Company's
Articles of Incorporation or Bylaws; (11) any issuance, sale or authorization
for issuance or sale of any of the Company's capital stock (including, without
limitation, by way of stock split or dividend) or any subscription, option,
warrant, right or convertible security, or entrance into any agreement or
commitment of any character obligating the Company to issue or sell any of the
foregoing (other than as contemplated by this Agreement and the Warrant); (12)
any declaration, setting aside for payment or other distribution in respect of
any of the Company's capital stock, or any direct or indirect redemption,
purchase or other acquisition of any of such stock by the Company; (13) any
transaction other than in the ordinary course of business consistent with past
practices; (14) any other event or condition of any character that might
reasonably be expected to result in a Material Adverse Effect; or (15) any
agreement or commitment by the Company to do anything described in this Section
3(t).

                  (s) PRODUCTS; WARRANTY. The Company has no liability or
obligation and there is no basis for any present or future action, suit,
proceeding, hearing, investigation, charge, complaint, claim or demand against
it giving rise to any liability or obligation, relating to any product
manufactured, marketed, distributed or sold or services provided by the Company,
or any other damages in connection therewith. Except as set forth in SCHEDULE
3(S) hereto, no product manufactured, marketed, distributed or sold or services
provided by the Company is subject to any guaranty, warranty or other indemnity.
True and correct copies of the standard terms and conditions of sale, including
any discounts or other concessions provided to customers, utilized by the
Company (containing applicable guaranty, warranty and indemnity provisions) have
been previously delivered to the Investor. Information contained in any products
provided or services made available to the Company's customers accurately
reflect in all material respects the information which it is represented to
contain.

                  (t) INSURANCE. The Company has in effect insurance coverage
with reputable insurers, which, in respect to amounts, types and risks insured,
is adequate for the business in which the Company is engaged, its assets,
operations and personnel. The insurance policies owned or held by the Company
are sufficient for compliance with all requirements of law, rule and regulation
and of all Commitments (as hereinafter defined). The Company has never been
refused any insurance with respect to its business or any of its assets,
operations or personnel, nor has any coverage been

                                      -9-
<PAGE>   10

limited in any material respect by any insurance carrier to which the Company
has applied for any insurance or with which it has carried insurance since its
incorporation. SCHEDULE 3(T) hereto lists (a) each insurance policy and bond
maintained by the Company or under which any of its business, assets, products,
operations or personnel are insured and (b) areas pertaining to the business,
assets, operations or personnel of the Company with respect to which the Company
is self-insured.

                  (u) TAX RETURNS AND PAYMENTS. The Company has timely filed all
tax returns and reports as required by law, rule or regulation. These returns
and reports are true and correct in all material respects. The Company has
timely paid all taxes and other assessments shown thereon to be due, except
those contested by them in good faith that are listed in SCHEDULE 3(U) hereto.
The provision for taxes of the Company as shown in the Balance Sheet is adequate
for taxes due or accrued as of the date thereof.

                  (v) LABOR AGREEMENTS AND ACTIONS. The Company is not bound by
or subject to (and none of its assets or properties is bound by or subject to)
any written or oral, express or implied, contract, commitment or arrangement
with any labor union, and no labor union has requested or, to the knowledge of
the Company, has sought to represent any of the employees of the Company. There
is no strike or other labor dispute involving the Company pending, or to the
knowledge of the Company threatened, which could reasonably be expected to
result in a Company Material Adverse Effect, nor is the Company aware of any
labor organization activity involving the Company's employees. The Company is
not aware that any of the Company's officers or key employees, or that any group
of key employees, intends to terminate their employment with the Company, nor
does the Company have a present intention to terminate the employment of any of
the foregoing.

                  (w) EMPLOYEE BENEFIT PLANS. Except as set forth in SCHEDULE
3(W) hereto, the Company does not have any Employee Benefit Plan as defined in
the Employee Retirement Income Security Act of 1974 ("ERISA"). The Company is in
compliance in all material respects with the requirements of ERISA with respect
to such plans.

                  (x) MAJOR CUSTOMERS AND SUPPLIERS. Except as set forth on
SCHEDULE 3(X) hereto, no single customer or supplier of the Company accounts for
more than five percent (5%) of the Company's revenues or shipments, products or
inventories, as the case may be. No customer or supplier of the Company which
accounts for more than five percent (5%) of the Company's revenues or shipments,
products or inventories, as the case may be, has (1) canceled, suspended or
otherwise terminated its relationship with the Company or (2) advised the
Company of its intention to cancel, suspend or terminate its relationship or to
significantly decrease its purchases from or shipments to the Company or to
materially and adversely change the terms upon which it purchases or ships or
delivers products or services to or from the Company. To the knowledge of the
Company, none of such persons or entities will cancel, suspend or terminate its
relationship with the Company or substantially decrease its purchases, sales or
volume of business because of the transactions contemplated hereby or otherwise.

                                      -10-
<PAGE>   11
                  (y) COMPANY DEBT. The Company has no indebtedness for borrowed
money or other forms of indebtedness, other than as set forth on SCHEDULE 3(Y)
hereto. SCHEDULE 3(Y) hereto sets forth a description of such indebtedness,
including the maturity date, interest rate and outstanding balance and accrued
and unpaid interest as of the date hereof. All amounts reflected on SCHEDULE
3(Y) hereto can be repaid in full by the Company prior to stated maturity for
the face amount thereof, together with accrued and unpaid interest thereon, and
without incurring any prepayment penalties, yield maintenance premiums or any
material additional amounts.

                  (z) ACCOUNTS RECEIVABLE. All accounts receivable, unbilled
invoices and other debts reflected on the Balance Sheet and in the books and
records of the Company since September 30, 2000 as being due to the Company are
valid, bona fide and binding claims arising in the ordinary course of business,
are subject to no setoffs or counterclaims and are current and collectible in
the ordinary course of business at their recorded amounts, subject only to the
reserve for bad debts clearly set forth on the face of the Balance Sheet (rather
than in any notes thereto) as adjusted for the passage of time through the
Closing in accordance with past practices.

                  (aa) NOTICE TO QUOTATION SYSTEM. No consent, approval or
authorization of, or filing with, any securities exchange or quotation system or
any other similar entity or organization, is required to be made by the Company
in connection with the execution, delivery or performance of this Agreement and
the Registration Rights Agreement by the Company or the consummation by the
Company of the transactions contemplated hereby or thereby, and, except as
contemplated by Section 6 hereof, no consent or vote of the shareholders of the
Company is required in connection herewith or therewith.

                  (bb) BROKERS. No financial advisor, broker or finder, is
entitled to any broker's, finder's, investment banking or similar fees,
commissions or expenses in connection with this Agreement or the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of
the Company.

                  (cc) OFFERING. Subject in part to the Investor's
representations set forth in Section 4 hereof, the offer, sale and issuance of
the Shares and the Warrant as contemplated by this Agreement are exempt from the
registration requirements of the Securities Act, and neither the Company nor any
authorized agent acting on its behalf has taken or will take any action that
would cause the loss of such exemption.

                  (dd) FULL DISCLOSURE. The Company has provided Investor with
all the information that Investor has requested for deciding whether to purchase
the Shares and the Warrant. No representation or warranty of the Company
contained in this Agreement, and none of the statements or information
concerning the Company contained in this Agreement or the Exhibits and the
Schedules hereto, contains or will contain any untrue statement of a material
fact nor will such representations, warranties, covenants or statements taken as
a whole omit a material fact required to be stated therein or necessary in order
to make the statements therein, in light of the circumstances under which they
were made, not misleading.

                                      -11-
<PAGE>   12

         4. REPRESENTATIONS AND WARRANTIES OF THE INVESTOR. In order to induce
the Company to enter into this Agreement, the Investor hereby makes the
representations and warranties set forth below to the Company.

                  (a) ORGANIZATION, GOOD STANDING AND QUALIFICATION. The
Investor is a company duly organized and validly existing under the laws of the
Isle of Man. The Investor has all requisite company right, power and authority
to enter into this Agreement and the Registration Rights Agreement and to
consummate the transactions contemplated hereby and thereby.

                  (b) AUTHORIZATION. All company action on the part of the
Investor, and its officers, directors and shareholders necessary for (1) the
authorization, execution and delivery by the Investor of this Agreement and the
Registration Rights Agreement, (2) the performance of all obligations of the
Investor hereunder and thereunder and (3) the purchase of the Shares and the
Warrant has been taken. This Agreement and the Registration Rights Agreement
each constitute valid and legally binding obligations of the Investor,
enforceable in accordance with their respective terms, except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of
general application affecting enforcement of creditors' rights generally, (ii)
as limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies, and (iii) to the extent the
indemnification provisions contained in the Registration Rights Agreement may be
limited by applicable federal or state securities laws.

                  (c) ACCREDITED INVESTOR. The Investor is an "accredited
investor" within the meaning of Rule 501 of Regulation D under the Securities
Act.

                  (d) RESTRICTED SHARES. The Investor understands that neither
the Shares nor the Warrant has been registered under the Securities Act or any
state securities laws. Consequently, neither the Shares nor the Warrant may be
sold, transferred or otherwise disposed of unless subsequently registered under
the Securities Act and applicable state securities laws or an exemption from
such registration is available. The certificate(s) representing the Shares and
the Warrant will bear restrictive legends to such effect.

                  (e) DISCLOSURE. The Investor has had an opportunity to obtain
information and documents relating to the Company and to ask questions of and
receive answers from representatives of the Company concerning the Company and
the Investor's investment.

                  (f) PURCHASE FOR INVESTMENT. The Investor is acquiring the
Shares and the Warrant solely for his own account, for investment, and not with
a view to or for the resale, assignment or distribution thereof.

                  (g) BROKERS. No financial advisor, broker or finder, is
entitled to any broker's, finder's, investment banking or similar fees,
commissions or expenses in connection with this Agreement or the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of
the Investor.

                                      -12-
<PAGE>   13
                  (h) CONTROL. The Investor is not an "interested shareholder"
under Section 607.0901 of the Florida Business Corporation Act (as such term is
defined therein) and is not an "acquiring person or member of a group" owning
"control shares" under Section 607.0902 of the Florida Business Corporation Act
(as such terms are defined therein), in each case, as of the date of this
Agreement and prior to giving effect to the transactions contemplated by this
Agreement.

         5. CONDITIONS PRECEDENT TO THE INVESTOR'S OBLIGATIONS. The obligations
of the Investor hereunder are subject to the Company, on or before the Closing,
having satisfied the following conditions:

                  (a) CERTAIN EMPLOYMENT AGREEMENTS. The Company shall have
executed, and shall have caused each of Marc A. Puleo, Chris Lloyd and John
Vermaaten to have executed, and delivered to the Investor, amendments to each of
the foregoing employee's respective employment agreement with the Company (the
forms of which are attached hereto as EXHIBITS E, F AND G, respectively),
pursuant to which each such employee shall have agreed to a reduction to his
annual base salary as set forth therein and shall further have agreed that such
reduction did not and does not and shall not constitute grounds for the
termination of such employee's employment agreement whether in connection with a
breach, default, event of "good cause" termination as defined therein, event of
"constructive" termination as defined therein or otherwise.

                  (b) CERTAIN STATE LAWS. The Board of Directors of the Company
shall have exempted the issuance and purchase of the Shares and the Warrant, and
upon the exercise of the Warrant, the issuance of the Warrant Shares, and this
Agreement and the Registration Rights Agreement and the transactions
contemplated hereby and thereby from any applicable state "control share" or
"affiliate transaction" laws or similar laws (including Sections 607.0901 and
607.0902 under the Florida Business Corporation Act), and shall have adopted and
approved, and delivered to the Investor, written resolutions explicitly stating
the foregoing.

                  (c) BOARD OF DIRECTORS. The Board of Directors of the Company
shall have caused the number of directors who comprise the Board of Directors of
the Company to be fixed at five (5) directors and shall have caused the three
(3) vacancies on the Board of Directors of the Company to be filled by the three
(3) designees of the Investor, and shall have adopted and approved, and
delivered to the Investor, written resolutions explicitly stating the foregoing.

                  (d) EXECUTED DOCUMENTS. The Company shall have executed the
Escrow Agreement, the Warrant and the Registration Rights Agreement
substantially in the forms attached hereto as EXHIBITS B, C AND D, respectively.

                  (e) CONSENTS. The Company shall have obtained all consents and
approvals required to be obtained in connection with the consummation of the
transactions contemplated hereby, including, without limitation, any consents
required to be obtained in connection with those instruments and agreements
listed on SCHEDULE 3(C) hereto.

                                      -13-
<PAGE>   14
         6. INCREASE AUTHORIZED SHARES. The Company shall, as promptly as
practicable after the date hereof, take all necessary and desirable actions to
cause the number of authorized shares of capital stock of the Company to be
increased so as to be sufficient for the reservation of the Warrant Shares and,
upon the exercise of the Warrant, the issuance of the Warrant Shares as
contemplated by the Warrant.

         7. REPORTING COMPANY. So long as the Investor beneficially owns any
portion of the Shares, the Warrant or the Warrant Shares, the Company shall use
its best efforts to timely file all reports required to be filed with the SEC
pursuant to the Exchange Act and the Company shall not terminate its status as a
reporting company under the Exchange Act even if such termination is permitted
under the Exchange Act.

         8. INDEMNIFICATION. The Company agrees to indemnify and hold harmless
the Investor from, against and in respect of, the full amount of any and all
liabilities, damages, claims, deficiencies, fines, assessments, losses, taxes,
penalties, interest, costs and expenses, including, without limitation,
reasonable fees and disbursements of counsel (collectively, the "Indemnified
Losses") arising from, in connection with, or incident to (a) any breach or
violation of any of the Company's representations, warranties, covenants or
agreements contained in this Agreement and (b) any and all actions, suits,
proceedings, demands, assessments or judgments, costs and expenses incidental to
any of the foregoing. In the Investor's sole discretion, in the event of any
breach or violation of any of the Company's representations or warranties set
forth in Section 3(f) and in lieu of the foregoing cash indemnification, the
Company shall issue and deliver to the Investor certificates representing the
number of shares of Common Stock required to cause the representations and
warranties set forth in Section 3(f) to be true and correct in all respects,
such number of shares to be adjusted for any and all stock splits, stock
dividends, reclassifications, recapitalizations and other like transactions,
whether by merger, consolidation, reorganization or otherwise. The Investor
agrees to indemnify and hold harmless the Company and its directors, officers,
employees and agents from, against and in respect of any and all Indemnified
Losses arising from, in connection with, or incident to (a) any breach or
violation of any of the Investor's representations, warranties, covenants or
agreements contained in this Agreement and (b) any and all actions, suits,
proceedings, demands, assessments or judgments, costs and expenses incidental to
any of the foregoing.

         9. MISCELLANEOUS.

                  (a) NOTICE. Any notice, request, demand or other communication
required or permitted under this Agreement shall be in writing and shall be
delivered personally (against receipt) or sent by certified mail, return receipt
requested, postage prepaid, or sent by facsimile or prepaid overnight courier to
the parties at the names and addresses set forth below (or at such other
addresses as shall be specified by the parties by like notice). If to the
Company, then to: PetMed Express, Inc., 1441 SW 29th Avenue, Pompano Beach,
Florida 33069, Attn: Marc A. Puleo, M.D., Facsimile No. 954-971-0544. If to the
Investor, then to: Tricon Holdings, LLC, 1020 NW 163rd Drive, Miami, Florida
33169, Attn: ____________________, Facsimile No. _________________. Such
notices,

                                      -14-
<PAGE>   15

demands, claims and other communications shall be deemed given when actually
received, or (a) in the case of delivery by overnight service with guaranteed
next day delivery, the next day or the day designated for delivery, (b) in the
case of certified U.S. mail, five (5) days after deposit in the U.S. mail, or
(c) in the case of facsimile, the date upon which the transmitting party
received confirmation of receipt by facsimile, telephone or otherwise.

                  (b) FURTHER ASSURANCES. The parties will, upon reasonable
request, execute and deliver all such further assignments, endorsements and
other documents as may be necessary in order to perfect the purchase by the
Investor of the Shares and the Warrant and to consummate the transactions
contemplated by this Agreement.

                  (c) ENTIRE AGREEMENT; AMENDMENT; WAIVER. This Agreement, the
Warrant and the Registration Rights Agreement contain the entire agreement among
the parties hereto with respect to the subject matter hereof and supersede all
prior agreements and understandings with respect thereto. This Agreement may not
be amended or modified except in a writing signed by both of the parties hereto.
Any waiver of any provision of this Agreement shall be evidenced by a writing
signed by the appropriate party. No waiver by any party of its rights under any
provision of this Agreement shall constitute a waiver of such party's rights
under such provisions at any other time or a waiver of such party's rights under
any other provision of this Agreement. No failure by any party hereto to take
any action against any breach of this Agreement or default by another party
shall constitute a waiver of the former party's right to enforce any provision
of this Agreement or to take action against such breach or default or any
subsequent breach or default by such other party.

                  (d) ASSIGNMENT, BINDING EFFECT; NO THIRD PARTY BENEFICIARY.
This Agreement shall not be assigned except in a writing signed by both of the
parties hereto. This Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective heirs, successors and permitted assigns;
however, nothing in this Agreement, expressed or implied, is intended to confer
on any other person other than the parties hereto, or their respective heirs,
successors or permitted assigns, any rights, remedies, obligations or
liabilities under or by reason of this Agreement.

                  (e) SURVIVAL. All of the representations and warranties of the
parties shall survive the Closing Date. Sections 6, 7, 8 and 9 hereof shall also
survive the Closing Date.

                  (f) INJUNCTIVE RELIEF. It is possible that remedies at law may
be inadequate and, therefore, the parties shall be entitled to equitable relief
including, without limitation, injunctive relief, specific performance or other
equitable remedies in addition to all other remedies provided hereunder or
available to the parties at law or in equity.

                  (g) COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of
which together shall be deemed to be one and the same instrument.

                                      -15-
<PAGE>   16

                  (h) GOVERNING LAW. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Florida,
both substantive and remedial.

                  (i) PREVAILING PARTIES. In any action or proceeding brought to
enforce or interpret any provision of this Agreement, or where any provision
hereof is validly asserted as a defense, the prevailing party shall be entitled
to receive and the nonprevailing party shall pay upon demand reasonable
attorneys' fees and expenses for the prevailing party in addition to any other
remedy.

                  (j) HEADINGS. The section headings herein are included for
convenience only and are not to be deemed a part of this Agreement.

                  (k) SEVERABILITY. The provisions of this Agreement are
severable, and in the event that any one or more provisions are deemed illegal,
void or unenforceable, the remaining provisions shall remain in full force and
effect, and such illegal, void or unenforceable provision shall be interpreted
in a manner in which accomplishes, to the extent possible, the original purpose
of such provision.

                                      -16-
<PAGE>   17

         IN WITNESS WHEREOF, each party hereto has duly executed this Agreement
as of the date first written above.

                                         THE COMPANY:

                                         PETMED EXPRESS, INC., a Florida
                                         corporation

                                         By: /s/ Marc Puleo, M.D.
                                             -----------------------------------
                                         Name:  Marc Puleo, M.D.
                                         Title: Chief Executive Officer

                                         THE INVESTOR:

                                         TRICON HOLDINGS, LLC, a Florida limited
                                         liability company

                                         By: /s/ Kenneth Jacobi
                                            ------------------------------------
                                         Name:  Kenneth Jacobi
                                         Title: Manager

                                      -17-
<PAGE>   18

                                    EXHIBIT A

                             FORM OF PROMISSORY NOTE

<PAGE>   19

                                    EXHIBIT B

                            FORM OF ESCROW AGREEMENT

<PAGE>   20

                                    EXHIBIT C

                                 FORM OF WARRANT

<PAGE>   21

                                    EXHIBIT D

                      FORM OF REGISTRATION RIGHTS AGREEMENT

<PAGE>   22

                                    EXHIBIT E

                      FORM OF AMENDMENT TO MARC A. PULEO'S

                              EMPLOYMENT AGREEMENT

<PAGE>   23

                                    EXHIBIT F

                       FORM OF AMENDMENT TO CHRIS LLOYD'S

                              EMPLOYMENT AGREEMENT

<PAGE>   24

                                    EXHIBIT G

                      FORM OF AMENDMENT TO JOHN VERMAATEN'S

                              EMPLOYMENT AGREEMENT<PAGE>   1
                                                                    Exhibit 10.2

================================================================================

                          REGISTRATION RIGHTS AGREEMENT

                          dated as of November 22, 2000

                                     between

                              PETMED EXPRESS, INC.

                                       and

                              TRICON HOLDINGS, LLC

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS

                                                                          Page
                                                                          ----
Section 1.        Definitions................................................1

Section 2.        Demand Registration........................................3
                  a.       Request for Registration by Holders...............3
                  b.       Filing and Effectiveness..........................3
                  c.       Priority On Demand Registration...................4
                  d.       Postponement of Demand Registration...............4

Section 3.        Shelf Registration.........................................5

Section 4.        Piggyback Registration.....................................5
                  a.       Right to Piggyback................................5
                  b.       Priority On Piggyback Registrations...............6

Section 5.        Registration Procedures....................................7

Section 6.        Registration Expenses.....................................12

Section 7.        Indemnification...........................................12
                  a.       Indemnification by the Company...................12
                  b.       Indemnification by Holders.......................13
                  c.       Conduct of Indemnification Proceedings...........13
                  d.       Contribution.....................................13

Section 8.        Underwritten Registrations................................14

Section 9.        Miscellaneous.............................................15
                  a.       Remedies.........................................15
                  b.       Amendments and Waivers...........................15
                  c.       Notices..........................................15
                  d.       Successors and Assigns...........................16
                  e.       Counterparts.....................................16
                  f.       Titles and Subtitles.............................16
                  g.       Governing Law....................................16
                  h.       Separability.....................................16
                  i.       Entire Agreement.................................16
                  j.       Merger or Consolidation of the Company...........16

                                       -i-

<PAGE>   3

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT") is made and
entered into as of November 22, 2000, by and between PETMED EXPRESS, INC., a
Florida corporation (together with its successors and assigns, the "COMPANY")
and TRICON HOLDINGS, LLC, a Florida limited liability company (together with its
successors and assigns, the "PURCHASER"), and each other person who becomes a
Holder (as defined below) hereunder.

                                    RECITALS

         WHEREAS, the Company and the Purchaser have entered into a Subscription
Agreement dated as of November 22, 2000 (the "SUBSCRIPTION AGREEMENT"); and

         WHEREAS, to induce the Purchaser to execute and deliver the
Subscription Agreement, the Company has agreed to provide to the Holders certain
registration rights under the Securities Act (as defined below).

         NOW, THEREFORE, in consideration of the mutual promises and agreements
set forth herein and in the Subscription Agreement, and other valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:

         Section 1. DEFINITIONS.  For purposes of this Agreement, the following
capitalized terms have the following meanings:

         "ARTICLES OF INCORPORATION" shall mean the Articles of Incorporation of
the Company.

         "ANCILLARY DOCUMENTS" shall mean this Agreement and the Warrant.

         "COMMON STOCK" shall mean the Common Stock, par value $0.001 per share
of the Company and any securities into which such common stock may be or has
been converted or exchanged in any merger, consolidation or reclassification.

         "HOLDERS" shall mean the Purchaser and each of the Purchaser's
permitted transferees pursuant to Section 9(d) who agree to be bound by the
provisions of this Agreement in accordance with said section.

         "PERSON" shall mean an individual, partnership, corporation, limited
liability company, unincorporated organization, trust or joint venture, or a
governmental agency or political subdivision thereof, or other entity of any
kind.

         "PROSPECTUS" shall mean the prospectus included in any Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed

<PAGE>   4

as part of an effective registration statement in reliance upon Rule 430A under
the Securities Act), as amended or supplemented by any prospectus supplement,
with respect to the terms of the offering of any portion of the Registrable
Securities covered by such Registration Statement and all other amendments and
supplements to such prospectus, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by reference in
such prospectus.

         "REGISTRABLE SECURITIES" shall mean all Shares and Warrant Shares,
excluding (i) any such shares that have been disposed of by a Holder pursuant to
a Registration Statement relating to the sale thereof that has become effective
under the Securities Act or pursuant to Rule 144 or Rule 145 under the
Securities Act and (ii) any such shares that may be sold under Rule 144 under
the Securities Act by a Holder who owns less than 1% of the issued and
outstanding shares of Common Stock of the Company. Registrable Securities shall
also include any shares of the Common Stock or other securities (or shares of
Common Stock underlying such other securities) that may be received by the
Holders (x) as a result of a stock dividend on or stock split of Registrable
Securities or (y) on account of Registrable Securities in a recapitalization of
or similar transaction involving the Company.

         "REGISTRATION STATEMENT" shall mean any registration statement of the
Company under the Securities Act (including Shelf Registration Statements as
defined in Section 3) that covers any of the Registrable Securities pursuant to
the provisions of this Agreement, including the related Prospectus, any
preliminary prospectus, all amendments and supplements to such registration
statement (including post-effective amendments), all exhibits and all material
incorporated by reference or deemed to be incorporated by reference in such
registration statement.

         "SEC" shall mean the Securities and Exchange Commission or any
successor agency.

         "SECURITIES ACT" shall mean the Securities Act of 1933, as amended, and
the rules and regulations promulgated thereunder, all as the same shall be in
effect from time to time.

         "SHARES" shall have the meaning set forth in the Subscription
Agreement, as well as any securities into which such common stock may be or has
been converted or exchanged in any merger, consolidation or reclassification.

         "SUBSCRIPTION AGREEMENT" shall have the meaning set forth in the
recitals hereto.

         "UNDERWRITTEN OFFERING" shall mean a distribution, registered pursuant
to the Securities Act, in which securities of the Company are sold to the public
through one or more underwriters.

         "WARRANT" shall have the meaning set forth in the Subscription
Agreement.

         "WARRANT SHARES" shall have the meaning set forth in the Subscription
Agreement.

                                       2
<PAGE>   5

         Section 2. DEMAND REGISTRATION.

                           a. REQUEST FOR REGISTRATION BY HOLDERS. Subject to
the conditions set forth in this Agreement, at any time, one or more Holders
will have the right, by written notice delivered to the Company (a "DEMAND
NOTICE"), to require the Company to register Registrable Securities under and in
accordance with the provisions of the Securities Act (a "DEMAND REGISTRATION");
provided that: (i) the Holders may not make in the aggregate more than two (2)
Demand Registrations under this Agreement and of the foregoing, no more than
once in any calendar year; and (ii) no Demand Notice may be given prior to six
(6) months after the date on which a registration pursuant to this Section 2 was
terminated in its entirety prior to the effective date of the applicable
registration statement. The Demand Notice shall set forth (A) the name of each
Holder signing such Demand Notice, (B) the number of Registrable Securities held
by each such Holder, and, if different, the number of Registrable Securities
such Holder has elected to have registered, and (C) the intended methods of
disposition of the Registrable Securities. A Holder may not withdraw Registrable
Securities from a registration without the Company's consent, which shall not be
unreasonably withheld unless all Holders requesting to include Registrable
Securities in such registration have withdrawn all of their Registrable
Securities. In the event of any such withdrawal, (1) any continuing registration
of Registrable Securities shall constitute a Demand Registration and (2) the
withdrawing Holder shall reimburse the Company for any registration and filing
fees (including any fees payable to the National Association of Securities
Dealers, Inc. or any successor organization) it has incurred with respect to the
withdrawn Registrable Securities (unless all Registrable Securities are
withdrawn, in which case the withdrawing Holder(s) shall reimburse the Company,
on a pro rata basis based on the number of Registrable Securities requested to
be included in such registration, for all costs and expenses incurred by it in
connection with the registration of such Registrable Securities). Subject to
compliance with clause (2) of the preceding proviso, a registration that is
terminated in its entirety prior to the effective date of the applicable
registration statement will not constitute a Demand Registration.

                           If a Demand Registration is not declared and
maintained effective for the period required by Section 2(b) or if the
consummation of the offering of Registrable Securities pursuant to such Demand
Registration is interfered with by any stop order, injunction or other order or
requirement of the SEC or other governmental agency or court which is not due to
the act or omission of any Holder, then the Holders shall be entitled to an
additional Demand Registration in lieu thereof.

                           b. FILING AND EFFECTIVENESS.

                                    (i) The Company will file a Registration
Statement relating to any Demand Registration as promptly as practicable (but in
any event within 75 days) following the date on which the Demand Notice is given
and will use its reasonable best efforts to cause the same to be declared
effective by the SEC as soon as practicable thereafter, but in any event within
120 days thereafter (the "EFFECTIVENESS DATE").

                                       3
<PAGE>   6

                                    (ii) The Company agrees to use its best
efforts to comply with all necessary provisions of the federal securities laws
in order to keep each Registration Statement relating to a Demand Registration
effective until all Registrable Securities covered by such Registration
Statement have been sold pursuant to such Registration Statement.

                                    Within ten (10) business days after receipt
of such Demand Notice, the Company will serve written notice thereof (the
"NOTICE") to all other Holders and will, subject to the provisions of Section
2(c), include in any registration required under this Section 2 all Registrable
Securities with respect to which the Company receives written requests for
inclusion therein within fifteen (15) business days after receipt of the Notice
by the applicable Holder. Subject to Section 2(a), the Holder will be permitted
to withdraw in good faith all or part of the Registrable Securities from a
Demand Registration at any time prior to the effective date of such Demand
Registration, in which event the Company will promptly amend or, if applicable,
withdraw the related Registration Statement.

                           c. PRIORITY ON DEMAND REGISTRATION. If Registrable
Securities are to be registered pursuant to a Demand Registration, the Company
shall provide written notice to the other Holders and will permit all such
Holders who request to be included in the Demand Registration to include any or
all Registrable Securities held by such Holders in such Demand Registration.
Notwithstanding the foregoing, if the managing underwriter or underwriters of an
Underwritten Offering to which such Demand Registration relates advises the
Holders that the total amount of Registrable Securities that such Holders intend
to include in such Demand Registration is in the aggregate such as to materially
and adversely affect the success of such offering, then the number of
Registrable Securities to be included in such Demand Registration will, if
necessary, be reduced and there will be included in such underwritten offering
the number of Registrable Securities that, in the opinion of such managing
underwriter or underwriters, can be sold without materially and adversely
affecting the success of such Underwritten Offering. The Registrable Securities
of the Holder or Holders initiating the Demand Registration shall receive
priority in such Underwritten Offering to the full extent of the Registrable
Securities such Holder or Holders desire to sell (unless these securities would
materially and adversely affect the success of such offering, in which case the
number of such Holder's Registrable Securities included in the offering shall be
reduced to the extent necessary) and the remaining allocation available for
sale, if any, shall be allocated PRO RATA among the other Holders on the basis
of the amount of Registrable Securities requested to be included therein by each
such Holder.

                           d. POSTPONEMENT OF DEMAND REGISTRATION.
Notwithstanding anything to the contrary in any other provision of this
Agreement, the Company will be entitled to postpone the filing period of any
Demand Registration for a reasonable period of time not in excess of 60 calendar
days if the Board of Directors of the Company determines, in the good faith
exercise of its business judgment, and has delivered to the Holders written
certification to the effect, that such registration and offering could
materially interfere with a bona fide financing transaction of the Company,
including without limitation a primary offering of securities, or any other
material business transaction of the Company, or would require disclosure of
information, the premature disclosure

                                       4
<PAGE>   7
of which could materially and adversely affect the Company. If the Company
postpones the filing of a Registration Statement, it will promptly notify the
Holders in writing when the events or circumstances permitting such postponement
have ended.

         Section 3. SHELF REGISTRATION. In lieu of the Demand Registrations
provided in Section 2 above, the Holders will be entitled to make one (1)
written request (specifying that such request is being made pursuant to this
Section 3) for the Company to file a Registration Statement on such form as the
Company is then permitted to use, covering up to and including all of the
Registrable Securities, for a public offering on a delayed or continuous basis
pursuant to Rule 415 under the Securities Act (each a "SHELF REGISTRATION
STATEMENT"). Upon receipt of such written request, the Company shall as promptly
as practicable (but in any event within 75 days) file such Shelf Registration
Statement and use its reasonable best efforts to cause the same to be declared
effective by the SEC as soon as practicable thereafter (but in any event within
120 days thereafter) or otherwise file a post-effective amendment and/or
supplement to any then-effective Shelf Registration Statement to allow the sale
of such Registrable Securities pursuant to such Shelf Registration Statement.
The Company agrees to use its best efforts to comply with all necessary
provisions of the federal securities laws in order to keep the Shelf
Registration Statement effective until all Registrable Securities covered by
such Shelf Registration Statement have been sold pursuant to such Shelf
Registration Statement.

         Section 4. PIGGYBACK REGISTRATION.

                           a. RIGHT TO PIGGYBACK. If at any time the Company
proposes to file a Registration Statement, whether or not for sale for the
Company's own account, on a form and in a manner that would also permit
registration of Registrable Securities (other than in connection with a
registration statement on Forms S-4 or S-8 or any similar or successor form),
the Company shall give to Holders holding Registrable Securities, written notice
of such proposed filing at least twenty (20) days before the anticipated filing.
The notice referred to in the preceding sentence shall offer Holders the
opportunity to register such amount of Registrable Securities as each Holder may
request (a "PIGGYBACK REGISTRATION"). Subject to Section 4(b), the Company will
include in each such Piggyback Registration (and any related qualification under
state blue sky laws and other compliance filings, and in any underwriting
involved therein) all Registrable Securities with respect to which the Company
has received written requests for inclusion therein within fifteen (15) days
after the written notice from the Company is given. The Holders will be
permitted to withdraw all or part of the Registrable Securities from a Piggyback
Registration at any time prior to the effective date of such Piggyback
Registration.

                           Notwithstanding the foregoing, the Company will not
be obligated to effect any registration of Registrable Securities under this
Section 4 as a result of the registration of any of its securities solely in
connection with mergers, acquisitions, exchange offers, dividend reinvestment
and share purchase plans offered solely to current holders of the Common Stock,
rights offerings or option or other employee benefit plans.

                                       5
<PAGE>   8

                           b. PRIORITY ON PIGGYBACK REGISTRATIONS. The Company
will cause the managing underwriter or underwriters of a proposed Underwritten
Offering to permit Holders holding Registrable Securities requested to be
included in the registration for such offering to include therein all such
Registrable Securities requested to be so included (such securities, together
with any other shares of the same class requested to be included in such
registration by any other Person pursuant to similar registration rights, the
"PIGGYBACK SHARES") on the same terms and conditions as any other securities of
the Company, whether or not for the Company's own account, included therein
(other than the indemnification by the Holders, which will be limited as set
forth in Section 7 hereof and that the Holders shall give customary
representations and warranties). The Company shall cooperate with any such
Holder of Registrable Securities in order to limit any representations and
warranties to, or agreements with, the Company or the underwriters to be made by
such Holder only to those representations, warranties or agreements regarding
such Holder, such Holder's Registrable Securities and such Holder's intended
method of distribution and any other representation required by law.
Notwithstanding the foregoing, if the managing underwriter or underwriters of
such Underwritten Offering advises the Holders to the effect that the total
amount of securities that such Holders and the Company propose to include in
such Underwritten Offering is such as to materially and adversely affect the
success of such offering, then the Company will include in such registration:

                  (x) in the case of a registration in connection with a sale of
                  securities for the Company's own account, (i) first, 100% of
                  the securities that the Company proposes to sell for its own
                  account, and (ii) second, to the extent that the number of
                  securities in clause (i) above is less than the number of
                  securities which the Company has been advised can be sold in
                  such offering without having the adverse effect referred to
                  above, the number of Piggyback Shares of each Holder and the
                  number of Piggyback Shares requested to be included in such
                  offering by any other Persons pursuant to similar registration
                  rights, determined pro rata on the basis of the number of
                  shares of the class being sold owned by each Holder requesting
                  registration and such other Persons requesting registration,
                  collectively; and

                  (y) in the case of a registration in connection with a sale of
                  securities on account of any Person other than the Company
                  (the "INITIATING PARTY"), (i) first, 100% of the securities,
                  if any, that the Initiating Party proposes to sell, (ii)
                  second, to the extent that the number of securities in clause
                  (i) above is less than the number of securities which the
                  Company has been advised can be sold in such offering without
                  having the adverse effect referred to above, the number of
                  Piggyback Shares of each Holder and the number of Piggyback
                  Shares requested to be included in such offering by any other
                  Persons pursuant to similar registration rights, determined
                  pro rata on the basis of the number of shares of the class
                  being sold

                                       6
<PAGE>   9
                  owned by each Holder requesting registration and such other
                  Persons requesting registration, collectively, and (iii)
                  third, to the extent that the number of securities in clauses
                  (i) and (ii) above is less than the number of securities which
                  the Company has been advised can be sold in such offering
                  without having the adverse effect referred to above, the
                  securities included by the Company in the offering.

         Section 5. REGISTRATION PROCEDURES. In connection with the Company's
registration obligations pursuant to Sections 2, 3 and 4, the Company will
effect such registrations to permit the sale of such Registrable Securities in
accordance with the intended method or methods of disposition thereof, and
pursuant thereto the Company will as expeditiously as possible, and in each case
to the extent applicable (it being understood that the obligations of the
Company in clauses (a), (b), (d), (h), (j), (k), (l), (n) and (q) of this
Section 5 will be subject to the first sentence of Section 4(b) and, except as
provided in Section 4(b), the Holders will not have any right to effect an
underwritten public offering under Section 4):

                           a. Prepare and file with the SEC a Registration
Statement on any appropriate form under the Securities Act available for the
sale of the Registrable Securities by the holders thereof in accordance with the
intended method or methods of distribution thereof, and cause such Registration
Statement to become effective and remain effective as provided herein; provided,
however, that before filing a Registration Statement or Prospectus or any
amendments or supplements thereto (including documents that would be
incorporated or deemed to be incorporated therein by reference) the Company will
furnish to the Holders holding Registrable Securities covered by such
Registration Statement, not more than one counsel chosen by Holders holding a
majority of the Registrable Securities being registered ("SPECIAL COUNSEL") and
the managing underwriters, if any, copies of all such documents proposed to be
filed, which documents will be subject to the review of such Holders, such
Special Counsel and such underwriters, and the Company will not file any such
Registration Statement or amendment thereto or any Prospectus or any supplement
thereto (excluding such documents that, upon filing, will be incorporated or
deemed to be incorporated by reference therein) to which the Holders holding a
majority of the Registrable Securities covered by such Registration Statement or
the managing underwriter, if any, shall reasonably object.

                           b. Prepare and file with the SEC such amendments and
post-effective amendments to each Registration Statement as may be necessary to
keep such Registration Statement continuously effective for the applicable
periods specified in Section 2 or 3, as the case may be; cause the related
Prospectus to be supplemented by any required Prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 (or any similar provisions then in
force) under the Securities Act; and comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
Registration Statement during the applicable period in accordance with the
intended methods of disposition by the sellers thereof set forth in such
Registration Statement as so amended or in such Prospectus as so supplemented.

                                       7
<PAGE>   10
                           c. Notify the selling Holders and the managing
underwriters, if any, promptly, and (if requested by any such person) confirm
such notice in writing, (i) when a Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to a Registration
Statement or any post-effective amendment, when the same has become effective,
(ii) of any request by the SEC or any other federal or state governmental
authority for amendments or supplements to a Registration Statement or related
Prospectus or for additional information, (iii) of the issuance by the SEC or
any other federal or state governmental authority of any stop order suspending
the effectiveness of a Registration Statement or the initiation of any
proceedings for that purpose, (iv) if at any time the representations and
warranties of the Company contained in any agreement contemplated by Section
5(n) (including any underwriting agreement) cease to be true and correct in any
material respect, (v) of the receipt by the Company of any notification with
respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose, (vi) of the
occurrence of any event that makes any statement made in such Registration
Statement or related Prospectus or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or that
requires the making of any changes in a Registration Statement, Prospectus or
any such document so that, in the case of the Registration Statement, it will
not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading and, in the case of the Prospectus, it will not contain
any untrue statement of a material fact or omit to state any material fact
required to be stated or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading, and (vii) of the
Company's reasonable determination that a post-effective amendment to a
Registration Statement would be appropriate.

                           d. Use its reasonable best efforts to obtain the
withdrawal of any order suspending the effectiveness of a Registration
Statement, or the lifting of any suspension of the qualification (or exemption
from qualification) of any of the Registrable Securities for sale in any
jurisdiction, at the earliest possible moment.

                           e. If requested by the managing underwriters, if any,
or Holders holding a majority of the Registrable Securities being registered,
(i) promptly incorporate in a Prospectus supplement or post-effective amendment
such information as the managing underwriters, if any, and such Holders agree
should be included therein as may be required by applicable law and (ii) make
all required filings of such Prospectus supplement or such post-effective
amendment as soon as practicable after the Company has received notification of
the matters to be incorporated in such Prospectus supplement or post-effective
amendment; provided, however, that the Company will not be required to take any
actions under this Section 5(e) that are not, in the opinion of counsel for the
Company, in compliance with applicable law; and provided further that to the
extent that any such information relates only to a particular Holder, the
consent of the Holders of a majority of the Registrable Securities being
registered shall not be required.

                                       8
<PAGE>   11

                           f. Furnish to each selling Holder and each managing
underwriter, if any, without charge, at least one conformed copy of the
Registration Statement and any post-effective amendment thereto (but excluding
schedules, all documents incorporated or deemed incorporated therein by
reference and all exhibits, unless requested in writing by such holder or
underwriter).

                           g. Deliver to each selling Holder and the
underwriters, if any, without charge as many copies of the Prospectus or
Prospectuses relating to such Registrable Securities (including each preliminary
prospectus) and any amendment or supplement thereto as such persons may
reasonably request; and, subject to the last paragraph of this Section 5, the
Company hereby consents to the use of such Prospectus or each amendment or
supplement thereto by each of the selling Holders and the underwriters, if any,
in connection with the offering and sale of the Registrable Securities covered
by such Prospectus or any amendment or supplement thereto.

                           h. Prior to any public offering of Registrable
Securities, to register or qualify or cooperate with the selling Holders, the
underwriters, if any, and their respective counsel in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the
securities or blue sky laws of such jurisdictions within the United States as
any seller or underwriter reasonably requests in writing; use all reasonable
efforts to keep such registration or qualification (or exemption therefrom)
effective during the period the applicable Registration Statement is required to
be kept effective and do any and all other acts or things necessary or advisable
to enable the disposition in each such jurisdiction of the Registrable
Securities covered by the applicable Registration Statement; provided, however,
that the Company will not be required to (i) qualify to do business in any
jurisdiction where it is not then so qualified or (ii) take any action that
would subject it to taxation or service of process in any such jurisdiction
where it is not then so subject.

                           i. Cooperate with the selling Holders and the
managing underwriters, if any, to facilitate the timely preparation and delivery
of certificates representing Registrable Securities to be sold and enable such
Registrable Securities to be in such denominations and registered in such names
as the managing underwriters, if any, shall request at least two business days
prior to any sale of Registrable Securities to the underwriters.

                           j. Use its reasonable best efforts to cause the
Registrable Securities covered by the applicable Registration Statement to be
registered with or approved by such other governmental agencies or authorities
within the United States except as may be required solely as a consequence of
the nature of any selling Holder's business, in which case the Company will
cooperate in all reasonable respects with the filing of such Registration
Statement and the granting of such approvals as may be necessary to enable the
seller or sellers thereof or the underwriters, if any, to consummate the
disposition of such Registrable Securities.

                           k. Upon the occurrence of any event contemplated by
Section 5(c)(vi) or 5(c)(vii), prepare a supplement or post-effective amendment
to each Registration Statement or a supplement to the related Prospectus or any
document incorporated therein by reference or file any

                                       9
<PAGE>   12

other required document so that, as thereafter delivered to the purchasers of
the Registrable Securities being sold thereunder, such Prospectus will not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.

                           l. If requested by Holders holding a majority of the
Registrable Securities covered by such Registration Statement or the managing
underwriters, if any, use its best efforts to cause all Registrable Securities
covered by such Registration Statement to be (i) listed on each securities
exchange, if any, on which securities issued by the Company of the same class
are then listed, or (ii) authorized to be quoted on the National Association of
Securities Dealers Automated Quotation System ("NASDAQ"), if the securities
qualify to be so quoted.

                           m. As needed, (i) engage an appropriate transfer
agent and provide the transfer agent with printed certificates for the
Registrable Securities in a form eligible for deposit with The Depository Trust
Company and (ii) provide a CUSIP number for the Registrable Securities.

                           n. Enter into such customary agreements (including,
in the event of an Underwritten Offering, an underwriting agreement in form,
scope and substance as is customary in underwritten offerings) and take all such
other commercially reasonable and customary actions in connection therewith
(including those reasonably requested by the Holders holding a majority of the
Registrable Securities being sold or, in the event of an Underwritten Offering,
those reasonably requested by the managing underwriters) in order to facilitate
the disposition of such Registrable Securities and in such connection, but only
where an underwriting agreement is entered into in connection with an
underwritten registration, (i) make such representations and warranties to the
underwriters with respect to the businesses of the Company and its subsidiaries,
the Registration Statement, Prospectus and documents incorporated by reference
or deemed incorporated by reference therein, if any, in each case, in form,
substance and scope as are customarily made by issuers to underwriters in
underwritten offerings and confirm the same if and when requested; (ii) obtain
opinions of counsel to the Company and updates thereof, which counsel and
opinions (in form, scope and substance) shall be reasonably satisfactory to the
managing underwriters, if any, addressed to each of the underwriters covering
the matters customarily covered in opinions requested in underwritten offerings
and such other matters as may be reasonably requested by such underwriters;
(iii) obtain "comfort" letters and updates thereof from the independent
certified public accountants of the Company (and, if necessary, any other
certified public accountants of any subsidiary of the Company or of any business
acquired by the Company for which financial statements and financial data is, or
is required to be, included in the Registration Statement), addressed to each of
the underwriters, such letters to be in customary form and covering matters of
the type customarily covered in "comfort" letters in connection with
underwritten offerings; (iv) cause the Company's management to be made available
for, and assist in, the marketing and disposition of such Registrable Securities
in the manner and to the extent reasonably requested by the underwriters
including, without limitation, participation by management in customary road
shows, investor conferences and other similar presentations and (v) deliver such
documents and certificates as may be reasonably requested by the managing
underwriters, if any, to evidence the continued validity of

                                       10
<PAGE>   13

the representations and warranties of the Company and its subsidiaries made
pursuant to clause (i) above and to evidence compliance with any customary
conditions contained in the underwriting agreement entered into by the Company.
The foregoing actions will be taken in connection with each closing under such
underwriting agreement as and to the extent required thereunder.

                           o. Make available for reasonable inspection during
normal business hours by a representative of the Holders holding Registrable
Securities being sold, any underwriter participating in any disposition of
Registrable Securities, and any attorney or accountant retained by such selling
Holders or underwriter, all financial and other records, pertinent corporate
documents and properties of the Company and its subsidiaries, and cause the
officers, directors and employees of the Company and its subsidiaries to supply
all information reasonably requested by any such representative, underwriter,
attorney or accountant in connection with such Registration Statement; provided,
however, that any records, information or documents that are designated by the
Company in writing as confidential at the time of delivery of such records,
information or documents will be kept confidential by such persons unless (i)
such records, information or documents are in the public domain or otherwise
publicly available, (ii) disclosure of such records, information or documents is
required by court or administrative order or is necessary to respond to
inquiries of regulatory authorities, or (iii) disclosure of such records,
information or documents, in the reasonable opinion of counsel to such person,
is otherwise required by law (including, without limitation, pursuant to the
requirements of the Securities Act).

                           p. Comply with all applicable rules and regulations
of the SEC and make generally available to its security holders earning
statements satisfying the provisions of Section 11(a) of the Securities Act and
Rule 158 thereunder (or any similar rule promulgated under the Securities Act)
no later than 45 calendar days after the end of any 12-month period (or 90
calendar days after the end of any 12-month period if such period is a fiscal
year) (i) commencing at the end of any fiscal quarter in which Registrable
Securities are sold to underwriters in a firm commitment or best efforts
underwritten offering, or (ii) if not sold to underwriters in such an offering,
commencing on the first day of the first fiscal quarter of the Company, after
the effective date of a Registration Statement, which statements shall cover
such 12-month period.

                           The Company may require each seller of Registrable
Securities as to which any registration is being effected to furnish to the
Company such information regarding the distribution of such Registrable
Securities as the Company may, from time to time, reasonably request in writing,
and the Company may exclude from such registration the Registrable Securities of
any seller who unreasonably fails to furnish such information within a
reasonable time after receiving such request.

                           Each Holder will be deemed to have agreed by virtue
of its acquisition of Registrable Securities that, upon receipt of any notice
from the Company of the occurrence of any event of the kind described in Section
5(c)(ii), 5(c)(iii), 5(c)(v), 5(c)(vi) or 5(c)(vii) ("SUSPENSION NOTICE"), such
Holder will forthwith discontinue disposition of such Registrable Securities
covered by such Registration Statement or Prospectus (a "BLACK-OUT") until such
Holder's receipt of the

                                       11
<PAGE>   14

copies of the supplemented or amended Prospectus contemplated by Section 5(k),
or until it is advised in writing (the "ADVICE") by the Company that the use of
the applicable Prospectus may be resumed, and such Holder has received copies of
any additional or supplemental filings that are incorporated or deemed to be
incorporated by reference in such Prospectus. Except as expressly provided
herein, there shall be no limitation with regard to the number of Suspension
Notices that the Company is entitled to give hereunder; provided, however, that
in no event shall the aggregate number of days the Holders are subject to
Black-Out during any period of 12 consecutive months exceed 180 days.

         Section 6. REGISTRATION EXPENSES. Subject to the second to last
sentence of Section 2(a) and the last sentence of this Section 6, all fees and
expenses incident to the performance of or compliance with this Agreement by the
Company will be borne by the Company whether or not any of the Registration
Statements become effective. Such fees and expenses will include, without
limitation, (i) printing expenses (including, without limitation, expenses of
printing certificates for Registrable Securities in a form eligible for deposit
with The Depository Trust Company and of printing a reasonable number of
prospectuses if the printing of such prospectuses is requested by the Holders
holding a majority of the Registrable Securities included in any Registration
Statement), (ii) messenger, telephone and delivery expenses incurred by the
Company, (iii) fees and disbursements of counsel for the Company incurred by the
Company, (iv) all registration and filing fees (excluding fees and expenses for
compliance with securities or "blue sky" laws), and (v) fees and disbursements
of all independent certified public accountants referred to in Section 5(n)(iii)
(including the expenses of any special audit and "comfort" letter required by or
incident to such performance) incurred by the Company. In addition, the Company
will pay internal expenses (including without limitation all salaries and
expenses of its officers and employees performing legal or accounting duties),
the expense of any annual audit, the fees and expenses incurred in connection
with the listing of the securities to be registered on any securities exchange
on which securities of the same class issued by the Company are then listed and
the fees and expenses of any person, including special experts, retained by the
Company. In no event, however, will the Company be responsible for any
underwriting discounts or selling commissions with respect to any sale of
Registrable Securities pursuant to this Agreement, and the Holders shall be
responsible on a pro rata basis for any taxes of any kind (including, without
limitation, transfer taxes) with respect to any disposition, sale or transfer of
Registrable Securities and for any legal, accounting and other expenses incurred
by them in connection with any Registration Statement.

         Section 7. INDEMNIFICATION.

                           a. INDEMNIFICATION BY THE COMPANY. The Company will
indemnify and hold harmless, to the fullest extent permitted by law, each Holder
holding Registrable Securities registered pursuant to this Agreement, the
officers, directors and agents and employees of each of them, each person who
controls such a Holder (within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act) and the officers, directors, agents and
employees of any such controlling person, from and against all losses, claims,
damages, liabilities, costs (including without limitation the costs of
investigation and attorneys' fees) and expenses (collectively, "LOSSES"),

                                       12
<PAGE>   15

arising out of or based upon any untrue or alleged untrue statement of a
material fact contained in any Registration Statement, Prospectus or form of
Prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or based upon any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, except insofar and then only to the
extent that the same are based upon information furnished in writing to the
Company by such Holder specifically for use therein.

                           b. INDEMNIFICATION BY HOLDERS. In connection with any
Registration Statement in which a Holder is participating, such Holder will
furnish to the Company in writing such information as the Company reasonably
requests for use in connection with any Registration Statement, Prospectus or
preliminary prospectus and will indemnify and hold harmless, to the fullest
extent permitted by law, the Company, its directors and officers, agents and
employees, each person who controls the Company (within the meaning of Section
15 of the Securities Act and Section 20 of the Exchange Act), and the directors,
officers, agents or employees of such controlling persons, from and against all
Losses arising out of or based upon any untrue or alleged untrue statement of a
material fact contained in any Registration Statement, Prospectus or preliminary
prospectus or arising out of or based upon any omission of a material fact
required to be stated therein or necessary to make the statements therein not
misleading, to the extent, but only to the extent, that such untrue statement or
omission is contained in any information so furnished in writing by such Holder
to the Company specifically for use in such Registration Statement, Prospectus
or preliminary prospectus and was relied upon by the Company in the preparation
of such Registration Statement, Prospectus or preliminary prospectus. In no
event will the liability of any selling Holder hereunder be greater in amount
than the dollar amount of the proceeds received by such Holder upon the sale of
the Registrable Securities giving rise to such indemnification obligation.

                           c. CONDUCT OF INDEMNIFICATION PROCEEDINGS. If any
person shall become entitled to indemnity hereunder (an "INDEMNIFIED PARTY"),
such indemnified party shall give prompt written notice to the party from which
such indemnity is sought (the "INDEMNIFYING PARTY") of any claim or of the
commencement of any action or proceeding with respect to which such indemnified
party seeks indemnification or contribution pursuant hereto; provided, however,
that the failure to so notify the indemnifying party will not relieve the
indemnifying party from any obligation or liability except to the extent that
the indemnifying party has been prejudiced materially by such failure. All
reasonable fees and expenses (including any reasonable fees and expenses
incurred in connection with investigating or preparing to defend such action or
proceeding) will be paid to the indemnified party (provided appropriate
documentation for such expenses is also submitted with such notice), as
incurred, within five calendar days of written notice thereof to the
indemnifying party (regardless of whether it is ultimately determined that an
indemnified party is not entitled to indemnification hereunder). The
indemnifying party will not consent to entry of any judgment or enter into any
settlement or otherwise seek to terminate any action or proceeding in which any
indemnified party is or could be a party and as to which indemnification or
contribution could be sought by such indemnified party under this Section 7,
unless such judgment, settlement or other termination includes as an
unconditional term thereof the giving by the claimant or plaintiff to such
indemnified party of a release, in form and substance reasonably satisfactory to
the indemnified

                                       13
<PAGE>   16

party, from all liability in respect of such claim or litigation
for which such indemnified party would be entitled to indemnification hereunder.

                           d. CONTRIBUTION. If the indemnification provided for
in this Section 7 is unavailable to an indemnified party under Section 7(a) or
7(b) in respect of any Losses or is insufficient to hold such indemnified party
harmless, then each applicable indemnifying party, in lieu of indemnifying such
indemnified party, will, severally but not jointly, contribute to the amount
paid or payable by such indemnified party as a result of such Losses, in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party or indemnifying parties, on the one hand, and such indemnified party, on
the other hand, in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such indemnifying party or indemnifying parties, on the
one hand, and such indemnified party, on the other hand, will be determined by
reference to, among other things, whether any action in question, including any
untrue or alleged untrue statement of a material fact or omission or alleged
omission of a material fact, has been taken or made by, or related to
information supplied by, such indemnifying party or indemnified party, and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such action, statement or omission. The amount paid or
payable by a party as a result of any Losses will be deemed to include any legal
or other fees or expenses incurred by such party in connection with any action
or proceeding.

                           The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 7(d) were determined by
pro rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this Section 7(d), an indemnifying
party that is a selling Holder will not be required to contribute any amount in
excess of the amount by which the total price at which the Registrable
Securities sold by such indemnifying party and distributed to the public were
offered to the public exceeds the amount of any damages that such indemnifying
party has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
will be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

                           e. Except for the payment of reasonable fees and
expenses pursuant to Section 7(c), no indemnifying party shall be required to
make any payment under this Section 7 until a court of competent jurisdiction
and a court hearing appeals therefrom have determined in a final judgment that
such party is obligated to do so pursuant to this Section 7.

                           The indemnity, contribution and expense reimbursement
obligations of the Company hereunder will be in addition to any liability the
Company may otherwise have hereunder or otherwise. The provisions of this
Section 7 will survive, notwithstanding any permitted transfer of the
Registrable Securities by any Holder thereof or any termination of this
Agreement.

                                       14
<PAGE>   17

         Section 8. UNDERWRITTEN REGISTRATIONS. The Company will have the
exclusive right in connection with any Demand Registration or Piggyback
Registration that is an Underwritten Offering to select an investment banker or
investment bankers and a manager or managers to manage the offering, provided
that in the case of a Demand Registration, such investment banker(s) is
reasonably acceptable to the Holders holding a majority of the Registrable
Securities included in the Demand Notice. The Company and the Holders agree
that, in connection with any Underwritten Offering hereunder, they shall each
undertake to offer customary indemnification, representations and warranties to
the participating underwriters and to agree to any restrictions required by the
underwriters on the sale of Common Stock or other securities by such party after
the completion of the underwritten offering.

         Section 9. MISCELLANEOUS.

                           a. REMEDIES. In the event of a breach by a party of
its obligations under this Agreement, each other party, in addition to being
entitled to exercise all rights granted by law, including recovery of damages,
will be entitled to specific performance of its rights under this Agreement.
Each party agrees that monetary damages would not be adequate compensation for
any loss incurred by reason of a breach by it of any provision of this Agreement
and hereby further agrees that, in the event of any action for specific
performance in respect of such breach, it will waive the defense that a remedy
at law would be adequate.

                           b. AMENDMENTS AND WAIVERS. The provisions of this
Agreement may not be amended, modified or supplemented without the prior written
consent of the Company, and Holders holding in excess of 50% of the Registrable
Securities in respect of which Registrable Securities are issuable.

                           c. NOTICES. All notices required or permitted
hereunder shall be in writing and shall be deemed effectively given: (i) upon
personal delivery to the party to be notified; (ii) when sent by confirmed telex
or facsimile if sent during normal business hours of the recipient, if not, then
on the next business day; (iii) upon delivery if sent by registered or certified
mail, return receipt requested, postage prepaid; or (iv) upon delivery if
deposited with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. All communications shall be sent
to the parties at the following addresses (or at such other address for a party
as shall be specified by like notice):

If to the Company:                    PetMed Express, Inc.
                                      1441 SW 29th Avenue
                                      Pompano Beach, Florida 33069
                                      Attn:  Marc A. Puleo, M.D.
                                      Facsimile: 954-971-0544

                                       15
<PAGE>   18

With a copy to:                       Atlas Pearlman, P.A.
                                      350 East Las Olas Boulevard
                                      Suite 1700
                                      Fort Lauderdale, Florida 33301
                                      Attn: Roxanne K. Beilly, Esq.
                                      Facsimile: 954-766-7800

If to the Purchaser:                  Tricon Holdings, LLC
                                      1020 N.W. 163rd Drive
                                      Miami, Florida 33169

                                      Attn: ________________
                                      Facsimile:_______________

With a copy to:                       Stearns Weaver Miller Weissler
                                      Alhadeff & Sitterson, P.A.
                                      150 West Flagler Street, Suite 2200
                                      Miami, Florida 33130
                                      Attn: David M. Seifer, Esq.
                                      Facsimile: 305-789-3395

or to such other address or addresses as shall be designated in writing. All
notices shall be effective when received.

                           d. SUCCESSORS AND ASSIGNS. Subject to the terms of
the Common Stock and the Warrant regarding transfers of the Shares and the
Warrant Shares, respectively, any lawful transferee of all or a portion of the
Registrable Securities shall become a Holder hereunder to the extent it agrees
in writing to be bound by all of the provisions applicable hereunder to the
transferring Holder (such acknowledgment being evidenced by execution and
delivery to the Company of a Counterpart and Acknowledgment substantially in the
form of EXHIBIT A). Subject to the requirements of this Section 9(d), this
Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of the parties hereto.

                           e. COUNTERPARTS. This Agreement may be executed in
any number of counterparts, each of which shall be an original, but all of which
together shall constitute one instrument.

                           f. TITLES AND SUBTITLES. The titles of the sections
and subsections of this Agreement are for convenience of reference only and are
not to be considered in construing this Agreement.

                           g. GOVERNING LAW. This Agreement shall be governed in
all respects by the laws of the State of Florida.

                                       16
<PAGE>   19

                           h. SEPARABILITY. In case any provision of this
Agreement shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

                           i. ENTIRE AGREEMENT. This Agreement and the other
documents delivered pursuant hereto, the Subscription Agreement and the other
Ancillary Documents constitute the full and entire understanding and agreement
between the parties with regard to the subjects thereto and no party shall be
liable or bound to any other in any manner by any representations, warranties,
covenants and agreements except as specifically set forth herein and therein.

                           j. MERGER OR CONSOLIDATION OF THE COMPANY. If the
Company is a party to any merger or consolidation pursuant to which the
Registrable Securities are converted into or exchanged for securities or the
right to receive securities of any other person ("CONVERSION SECURITIES"), the
issuer of such Conversion Securities shall assume (in a writing delivered to all
Holders) all obligations of the Company hereunder. The Company will not effect
any merger or consolidation described in the immediately preceding sentence
unless the issuer of the Conversion Securities complies with this Section 9(j).

                                       17
<PAGE>   20

                  IN WITNESS WHEREOF, each of the parties has duly executed this
Agreement as of the date first written above.

                                         PETMED EXPRESS, INC.

                                         By: /s/ Marc Puleo, M.D.
                                             -----------------------------------
                                         Name:  Marc Puleo, M.D.
                                         Title: Chief Executive Officer

                                         TRICON HOLDINGS, LLC

                                         By: /s/ Kenneth Jacobi
                                             -----------------------------------
                                         Name:  Kenneth Jacobi
                                         Title: Manager

                                       18
<PAGE>   21
                                    EXHIBIT A

                          REGISTRATION RIGHTS AGREEMENT
                         COUNTERPART AND ACKNOWLEDGMENT

TO:               The Company

RE:               The Registration Rights Agreement (the "AGREEMENT") dated as
                  of ___________, 2000 by and among the Company and the Holders
                  (as defined in the Agreement)

                  The undersigned hereby agrees to be bound by the terms of the
Agreement as a party to the Agreement, and shall be entitled to all benefits of
the Holders (as defined in the Agreement) and shall be subject to all
obligations and restrictions of the Holders pursuant to the Agreement, as fully
and effectively as though the undersigned had executed a counterpart of the
Agreement together with the other parties to the Agreement. The undersigned
hereby acknowledges having received and reviewed a copy of the Agreement.

                  DATED this _____ day of ____________, _____.

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

                                               Number of
                                               Shares of
                                               Registrable Securities:
                                                                      ----------

                                       19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}]]