Document:

ex_257246.htm

Exhibit 10.1

 

CEO SEPARATION AGREEMENT AND GENERAL RELEASE

 

THIS CEO SEPARATION AGREEMENT AND GENERAL RELEASE (this “Agreement”) is dated as of June 11, 2021, by and between Menderes Akdag, an individual whose address is 7136 NE 8 Drive, Boca Raton, FL 33487 (“Executive”), and PetMed Express, Inc., a Florida corporation, whose principal place of business is located at 420 S Congress Ave #100, Delray Beach, FL 33445 (the “Company”). The Company and Executive are individually referred to as a “Party”, and are collectively referred to in this Agreement as the “Parties.”

 

RECITALS

 

A.    Executive is currently the President and Chief Executive Officer (“CEO”), and a member of the Board of Directors of the Company.

 

B.    Executive’s prior Executive Employment Agreement with an effective date of March 16, 2001, as amended, will terminate effective July 30, 2021 (the “Employment Agreement”), and will not be renewed or extended.

 

C.    Executive and the Company desire to effectuate an orderly transition to a new CEO as described in more detail below.

 

NOW THEREFORE, in consideration of the mutual promises set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, do hereby agree as follows:

 

TERMS

 

1.    Recitals; Certain Definitions. The Recitals are true and correct and are incorporated into this Agreement.

 

2.    Employment. Executive shall remain in his current position as President and CEO of the Company under, and subject to the terms of, the Employment Agreement, through and including July 30, 2021 (the “Employment Termination Date”), and he shall remain a member of the Board of Directors during such period. Effective automatically as of the Employment Termination Date, Executive hereby resigns as a director and officer of, and from any and all other positions the Executive holds with the Company and its subsidiaries. The Executive and Company hereby agree that this Agreement is currently effective, and shall replace the Employment Agreement as of July 31, 2021, and accordingly the Employment Agreement will expire according to its terms as of July 30, 2021. Until the Employment Termination Date, Executive agrees to continue to give his full time and attention to the affairs of the Company as its CEO, which Executive acknowledges includes to fully and completely reasonably cooperate with those persons designated by the Board of Directors to work with him on a transition to a new CEO, including but not limited to promptly answering questions, and providing timely and accurate information and data about the operations of the Company to the persons assigned by the Board of Directors. For a period of six months following the Employment Termination Date (the “Cooperation Period”), while Executive shall not be employed by, or be serving as a consultant for the Company, Executive shall be reasonably available by telephone to provide timely and accurate answers to questions posed by members of the Board of Directors or executive management of the Company as to matters Executive was involved with during the term of his employment with the Company or as to which Executive has specific knowledge.

 

Exhibit 10.1 Page 1 of 27

 

 

 

 

3.    Stock Vesting. Notwithstanding the termination of Executive’s employment as of July 30, 2021, the Company agrees that so long as Executive has complied with the Employment Agreement, the Restrictive Covenant Agreement (as defined below), and this Agreement through and including July 31, 2021, the 37,800 shares of restricted stock granted to Executive shall vest, and shall be issued to Executive, and the tax thereon shall be paid by the Company, all as provided in the Employment Agreement, as amended, including specifically Amendment No. 8 to Executive Employment Agreement.

 

4.    Statement Regarding Termination of Employment. The Company shall provide Executive with drafts of all written disclosures the Company intends to make with respect to the circumstances of the termination of Executive’s employment for Executive’s review and comment. Further, if asked or if volunteering the information, the Parties shall explain that Executive and the Company agreed that Executive’s employment would terminate as of the Employment Termination Date.

 

5.    Severance Payments. In exchange for the mutual covenants and releases set forth in this Agreement, and contingent on Executive’s compliance with the Employment Agreement, the Restrictive Covenant Agreement, and this Agreement, and further contingent on Executive not revoking this Agreement during the Revocation Period (as defined below) and Executive executing and delivering to the Company the reaffirmation statement set forth immediately following Executive’s signature below, the Executive will be entitled to the following:

 

Severance Payments. The Company agrees to provide Executive with a lump sum payment in the amount of Three Hundred Twenty-Five Thousand Dollars and No Cents ($325,000.00) minus legally required tax withholdings (the “First Severance Payment”). The First Severance Payment shall be paid to Executive no later than August 10, 2021. The Company agrees to pay the Executive a second lump-sum payment of Three Hundred Twenty-Five Thousand Dollars and No Cents ($325,000.00) minus legally required tax withholdings to be paid on December 31, 2021 (the “Second Severance Payment”). Both of these payments shall be referred to as “Severance Payments”, and shall be conditioned on the above conditions being satisfied. Executive is excused from the contingency of, and from executing and delivering to the Company the reaffirmation statement if the Company has materially breached this Agreement.

 

6.    Nondisclosure, Non-Compete and Non-Solicitation Agreement.

 

a.    Reaffirmation. Executive reaffirms and agrees to be bound by all of the terms and provisions of that certain Non-Disclosure, Non-Compete and Non-Solicitation Agreement entered into by and between the Company and Executive with an effective date of November 12, 2012, that is attached hereto as Exhibit “A” and is made a substantive part of this Agreement (the “Restrictive Covenant Agreement”). The Parties affirm that for purposes of the Restrictive Covenant Agreement, the date of Executive’s termination of his employment with the Company is the Employment Termination Date.

 

b.    Nondisparagement. Subject to Section 10 and Section 11 below, Executive agrees to not make any statements, written or oral, while employed by the Company and thereafter, which would be reasonably likely to disparage or damage the Company or its Affiliates and subsidiaries or the personal or professional reputation of any present or former employees, officers, or directors of the Company and its Affiliates or subsidiaries; provided that the Executive will respond accurately and fully to any question, inquiry or

 

Exhibit 10.1 Page 2 of 27

 

 

 

 

request for information when required by legal process. The Company agrees that it will instruct each of its directors, officers, and employees not to make any disparaging communication regarding Executive, and no such person or entity will be authorized on the Company’s behalf to make any such disparaging communications regarding Executive, provided that nothing shall be deemed to preclude the Company and any of its directors, officers, or employees from complying with disclosure or other obligations imposed by law or regulation (including under the rules of the Securities and Exchange Commission) or accurately and fully responding to any question, inquiry or request for information when required by legal process. For purposes of this Agreement, the term “Affiliate” means, as to any specified person or entity, any other person or entity that directly or indirectly controls, or is under common control with, or is controlled by, such specified person or entity. As used in this definition, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) shall mean possession, directly or indirectly, of power to direct or cause the direction of the management or policies (whether through ownership of securities or partnership or other ownership interests, by contract, or otherwise).

 

7.    Survival of Certain Obligations. Notwithstanding the termination of Executive’s employment, the obligations, covenants, and restrictions set forth in the Restrictive Covenant Agreement shall continue to remain in full force and effect at all times hereafter in accordance with the terms of the Restrictive Covenant Agreement. The Parties agree that following the Employment Termination Date, Executive will no longer be a “Reporting Person” as defined under the Company’s Statement of Policy Regarding Insider Trading. Notwithstanding the foregoing, Executive acknowledges and agrees that (i) he shall be subject to all applicable laws with respect to trading on material, nonpublic information regarding Company (including without limitation material, nonpublic information received by the Executive in connection with the communications contemplated by the last sentence of Section 2 hereof) and (ii) he, and not Company, shall be responsible for all reporting and other obligations that Executive may have under Section 16 of the Securities Exchange Act of 1934, as amended.

 

8.    No Claim for Additional Compensation or Injury. Executive agrees that Executive has been paid all amounts owed to Executive under the Employment Agreement as of the date of this Agreement and any failure to make payments owed to Executive under the Employment Agreement shall also constitute a breach of this Agreement. Executive also represents that Executive is not aware of any conduct that Executive believes would constitute fraud, any accounting or financial improprieties, or any conduct that would be unlawful under Sarbanes-Oxley, Dodd-Frank, or any other similar statute or Company policy. Executive agrees that Executive has not suffered any on the job injury for which Executive has not already filed a claim.

 

9.    Releases and Waivers of Claims.

 

a.    In consideration for the payments and other benefits provided for under this Agreement, Executive hereby unconditionally and irrevocably releases, waives and forever discharges the Company and all past and present parents, successors in interests and assigns, Affiliates, subsidiaries, divisions, departments, wholly-owned corporations or partnerships, business associations, sole proprietorships, insurers and its current or former officers, agents, representatives, attorneys, fiduciaries, administrators, directors, stockholders, members, partners, or employees, in both their individual and official capacities (herein collectively referred to as “Released Parties”) of and from, and agrees not to sue and not to assert against them any causes of action, claims and demands

 

Exhibit 10.1 Page 3 of 27

 

 

 

 

whatsoever, at law, in equity, or before any agency or commission of local, state and federal governments, arising, alleged to have arisen, or which might have been alleged to have arisen, or which may arise under any law including, but not limited to, the Civil Rights Act of 1886, 1871, 1964, and 1991; 42 U.S.C. Section 1981; the Age Discrimination in Employment Act; the Equal Pay Act; the Employee Retirement Income Security Act; the Americans with Disabilities Act; the Family and Medical Leave Act; the National Labor Relations Act; the Fair Labor Standards Act, the Immigration Reform and Control Act of 1986; the Worker Adjustment Retraining and Notification Act; the Occupational Safety and Health Act; the Consolidated Omnibus Budget Reconciliation Act; the Florida Civil Rights Act of 1992; the Florida Minimum Wage Act; the Genetic Information Nondisclosure Act, the Florida Whistle-Blower’s Act; Sections 440.205 and 448.101-105, Florida Statutes, and any other statutory, common law, or public policy claim, whether in tort (including without limitation any claim for assault, battery, intentional infliction of emotional distress, invasion of privacy, negligence, or negligent hiring, retention, or supervision) or contract including but not limited to any claims of any breach of any prior employment agreements with the Company (including the Employment Agreement); whether federal, state, or local; whether at law or in equity; including attorney fees, costs, and expenses, to the date of this Agreement. Executive expressly intends this release to reach to the maximum extent permitted by law. Notwithstanding this provision, expressly excluded from this release, and not being released, are each of the following:

 

(i)         Company’s obligations to Executive pursuant to this Agreement, the Company’s obligation to Executive under the Employment Agreement through the Termination Date, the Indemnification Agreement attached as Exhibit “B”, and all other agreements between the Parties that remain in force and effect (collectively the “Surviving Agreements”), and

 

(ii)         Executive’s status as a shareholder of the Company, and the right to vote all shares of Company common stock held by the Executive and receive all dividends (if any) with respect thereto.

 

b.         In consideration for the payments and other benefits provided for under this Agreement, the Company hereby unconditionally and irrevocably releases, waives and forever discharges Executive of and from, and agrees not to sue and not to assert against Executive any causes of action, claims and demands whatsoever, at law, in equity, or before any agency or commission of local, state and federal governments, arising, alleged to have arisen, or which might have been alleged to have arisen, or which may arise under any law including any statutory, common law, or public policy claim, whether in tort (including without limitation any claim for assault, battery, intentional infliction of emotional distress, invasion of privacy, negligence, or negligent hiring, retention, or supervision) or contract including but not limited to any claims of any breach of any prior employment agreements with the Company (including the Employment Agreement); whether federal, state, or local; whether at law or in equity; including attorney fees, costs, and expenses, to the date of this Agreement. The Company expressly intends this release to reach to the maximum extent permitted by law. Notwithstanding this provision, expressly excluded from this release, and not being released are each of the following:

 

(i)         Executive’s obligations to the Company pursuant to the Surviving Agreements, and

 

Exhibit 10.1 Page 4 of 27

 

 

 

 

(ii)         any claim arising from any wrongful act or omission by the Executive that the Board of Directors of the Company (excluding the Executive) first learns about after the date of the execution of this Agreement.

 

As of the date of this Agreement, the Board knows of no facts and circumstances that would cause the Company or its Directors to have any claims against Executive.

 

10.    Challenge to Enforceability. Executive agrees not to challenge the enforceability of any provision of this Agreement in any court of competent jurisdiction or arbitration, except as to validity under the Age Discrimination in Employment Act of 1967. Executive understands that nothing contained in this Agreement limits Executive’s ability to file a charge or complaint with the Equal Employment Opportunity Commission (“EEOC”), the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”). Executive further understands that this Agreement does not limit Executive’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company. This Agreement does not limit Executive’s right to receive an award for information provided to any Government Agencies. Nothing in this Agreement shall prevent Executive’s participation in any legal proceedings against the Company or any Released Party in compliance with a summons that requires such participation, or Executive’s initiation of or participation in administrative proceedings or investigations of the EEOC or other Government Agencies; provided, however, that this Agreement shall prevent Executive from receiving any monetary or financial damages or recoveries from the Company or any Released Party or reinstatement with the Company in connection with any such proceedings or investigations which is not based on recovering or receiving an award paid by a Government Agency. Executive represents that Executive has not filed or asserted any claims whatsoever against the Company or any Released Party. Executive is not aware of any conduct by the Company or any Released Party that may violate any federal, state or local law, rule or regulation. Nothing contained in this Agreement shall prevent either Party from bringing any claim for breach or to otherwise take legal action to enforce its terms.

 

11.    Defend Trade Secrets Act Disclaimer.

 

a.    Nothing in this Agreement is intended to discourage or restrict Executive from reporting any theft of trade secrets pursuant to the Defend Trade Secrets Act of 2016 (the “DTSA”) or other applicable state or federal law.  The DTSA prohibits retaliation against an employee because of whistleblower activity in connection with the disclosure of trade secrets, so long as any such disclosure is made either (i) in confidence to an attorney or a federal, state, or local government official and solely to report or investigate a suspected violation of the law, or (ii) under seal in a complaint or other document filed in a lawsuit or other proceeding.

 

b.    If Executive believes that any employee or any third party has misappropriated or improperly used or disclosed trade secrets or confidential information, Executive should report such activity to the Company’s Chairman of the Board. This Agreement is in addition to and not in lieu of any obligations to protect the Company’s trade secrets and confidential information which otherwise exists. Nothing in this Agreement shall limit, curtail or diminish the Company’s statutory rights under the DTSA, any applicable state law regarding trade secrets or common law.

 

 

Exhibit 10.1 Page 5 of 27

 

 

 

 

12.    Indemnification. After the Employment Termination Date, the Company shall indemnify Executive pursuant to the terms of the Indemnification Agreement attached as Exhibit “B”, which the Parties acknowledge remains in full force and effect.

 

13.    Default. If the Company fails to make either of the Severance Payments on the specified dates, with time being of the essence, and the Company fails to make the payment within five (5) days of the date of an email sent to the Company advising of the default in payment, then the Company shall be in default of this Agreement, and Executive shall have all rights and remedies available at law and equity.

 

14.    Governing Law; Venue; Waiver of Jury Trial. This Agreement shall be subject to and governed by the laws of the State of Florida, without giving effect to the principles of conflicts of law under Florida law that would require or permit the application of the laws of a jurisdiction other than the State of Florida and irrespective of the fact that the Parties now or at any time may be residents of or engage in activities in a different state. Executive agrees that in the event of any dispute or claim arising under this Agreement, jurisdiction and venue shall be vested and proper, and Executive hereby consents to the jurisdiction of any court sitting in Ft. Lauderdale, Florida, including the United States District Court for the Southern District of Florida. THE PARTIES HEREBY WAIVE A JURY TRIAL IN ANY LITIGATION ARISING UNDER OR RELATING TO THIS AGREEMENT.

 

15.    Legal Fees. In the event of any controversy arising under or relating to the interpretation or implementation of this Agreement, or the breach thereof, the prevailing Party will be entitled to attorneys’ fees and costs for any trial and appellate proceedings.

 

16.    Entire Agreement. This Agreement incorporates the entire understanding among the Parties with respect to the subject matter hereof. In reaching the agreements in this Agreement, neither Party has relied upon any representation or promise, oral or written, except those set forth herein. This Agreement has been duly authorized by the Parties, and duly executed on behalf of each Party by the duly authorized officers or principals and in the manner required by all laws and regulations applicable to each such entity.

 

17.    Counterpart Signatures. This Agreement may be executed in one or more counterparts, and by the Parties in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. The Parties further agree that facsimile signatures or signatures scanned into .pdf (or similar) format and sent by e-mail shall be deemed original signatures.

 

18.    Assignment. This Agreement shall be binding upon and inure solely to the benefit of each Party identified herein, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. The Company may assign this Agreement to any successors (whether direct or indirect, by purchase, merger, consolidation or otherwise) to the business and/or assets of the Company. In as much as the duties of Executive hereunder are personal in nature, he may not assign this Agreement.

 

19.    Standstill. Without the prior written consent of the Company, the Executive shall not, nor shall he permit his Affiliates to, at any time prior to July 31, 2022: (a) except at the invitation of the Board of Directors of the Company, propose to enter into any merger or business combination involving the Company or its Affiliates or to purchase a material portion of the assets of the Company or its Affiliates; (b) make, or in any way participate, directly or indirectly, in any

 

Exhibit 10.1 Page 6 of 27

 

 

 

 

“solicitation” of “proxies” to vote (as such terms are used in the proxy rules of the Securities Exchange Act of 1934, as amended), or seek to advise or influence any person or entity with respect to the voting of, any voting securities of the Company; (c) form, join or in any way participate in a “group” (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) with respect to any voting securities of the Company; or (d) otherwise act, alone or in concert with others, to seek to control or influence the management, board of directors or policies of the Company.

 

20.    Severability. In the event any provision of this Agreement shall be held invalid or unenforceable, it shall be deemed modified, only to the extent necessary to make it lawful. To effect such modification, the said provision shall be deemed deleted, added to and/or rewritten, whichever shall most fully preserve the intentions of the Parties as originally expressed herein.

 

21.    Voluntary Execution. Executive represents that Executive has read this Agreement in its entirety and that Executive has had the opportunity to consult with legal counsel prior to signing this Agreement, that Executive has in fact consulted with his attorney Andrew Lavin, Esq. who has represented Executive in the negotiation of this Agreement and that Executive is fully aware of its contents and of its legal effect. Executive signs this Agreement of Executive’s own free will and act, without any legal reservations, duress, coercion or undue influence, and it is Executive’s intention that Executive be legally bound hereby. Each Party has had independent counsel and as such, each party shall bear his or its respective legal fees and expenses relating to this Agreement.

 

22.    Period to Consider and Revoke. Executive acknowledges that Executive was offered the opportunity to consider this Agreement for a period of twenty-one (21) days from the time Executive received it on June 7, 2021 and is hereby advised to review it with an attorney of Executive’s choice. This Agreement does not become effective until eighth (8th) day after the date Executive signs this Agreement and provides the Company with an original thereof. Executive can

 

Exhibit 10.1 Page 7 of 27

 

 

 

 

revoke the Agreement at any time during the seven (7) days after signing it (the “Revocation Period”).

 

23.    Acceptance and/or Revocation. IMPORTANT NOTICE TO EXECUTIVE: You may accept this Agreement by signing it and returning it to the Company. You may exercise your right to revoke your decision to sign this Agreement by sending a written notice of revocation to the individual and address specified below by no later than the last day of the Revocation Period stated above:

 

Dr. Gian Fulgoni

1800PetMeds

Email: gian@fulgoni.net

420 South Congress Avenue, #100

Delray Beach, Florida 33445

 

 

IN WITNESS WHEREOF, the Parties have duly executed this CEO Separation Agreement and General Release as of the date first written above.

 

PetMed Express, Inc.

 

 

By:  /s/ Gian Fulgoni

Dr. Gian Fulgoni

Its: Chair, Board of Directors

 

 

EXECUTIVE:                                                                                           

 

/s/ Menderes Akdag

Menderes Akdag, individually                                                       

 

Date of Signature: June 11, 2021

 

Exhibit 10.1 Page 8 of 27

 

 

 

 

REAFFIRMATION

Not to be signed before July 31, 2021

 

Reference is hereby made to the CEO Separation Agreement and General Release, dated June 11, 2021 (the “Separation Agreement and General Release”), between PetMed Express, Inc. and Menderes Akdag. The undersigned hereby agrees and affirms that, as a condition to receiving the Severance Payments, the undersigned hereby reaffirms and recommits to adhere to all of the obligations, covenants, releases, and waivers contained in the Separation Agreement and General Release. Should Menderes Akdag provide written notice to the then Chair of the Company’s Board of Directors of his intent not to sign this Reaffirmation pursuant to Section 5, all of the waivers and releases contained in the Separation Agreement and General Release granted by him to the Released Parties shall be void.

 

 

______________________________

Menderes Akdag

 

Exhibit 10.1 Page 9 of 27

 

 

 

 

EXHIBIT “A”

 

NON-DISCLOSURE, NON-COMPETE 

AND NON-SOLICITATION AGREEMENT 

 

         THIS NON-DISCLOSURE AND NON-COMPETE AGREEMENT (hereinafter the “Agreement”) is made and entered into as of Nov 12th, 2012 (the “Effective Date”) by and between PetMed Express, Inc. (hereinafter the “Employer”), a Florida corporation, and Menderes Akdag, an individual (hereinafter the “Employee”). Employer and Employee are referred to herein collectively as the “parties.”

 

For and in consideration of Employee’s employment by Employer and as a material inducement for Employer to provide Employee with training, to disclose certain confidential, proprietary information to Employee in connection with his/her employment in the operation of its business, and in consideration for Employer permitting Employee to work with Employer’s customers, clients, vendors, databases, and for other good and valuable consideration, the receipt and adequacy of which are hereby stipulated and acknowledged, Employee agrees to be bound by the following representations, warranties and covenants, to be effective unless expressly stated in writing to the contrary, during and at all times after Employee’s employment by Employer.

 

1.    Recitals. The above recitals are true and correct and are incorporated herein by this reference.

 

2.    Definitions.

 

	 	
			a.

				
			Employer. For purposes of this Agreement, “Employer” shall mean PetMed Express, Inc., its subsidiaries, affiliates, successors and any and all assigns.

			

 

	 	
			b.

				
			Facility. For purposes of this Agreement, “facility” or “facilities” shall mean any office, location and/or training site of Employer whether already existing as of the Effective Date of this Agreement or thereafter.

			

 

3.    Covenant Not to Disclose. In connection with Employee’s employment by Employer, Employer will disclose or make known to Employee and Employee will be given access to or may become acquainted with various confidential, trade secret, and/or proprietary information and ideas, proprietary rights, techniques and applications all relating to Employer’s business concepts and activities, including without limitation, databases, files, customers and customer lists, vendors and vendor lists, customer and vendor confidential information, potential or prospective customers, policy information and trade secrets regarding procedures, processes, business methods, manuals, marketing strategies and information, sales reports, cost reports and lists, employment lists, competitor reports, supplies, price lists, computer systems and other information and know-how, all relating to or useful in Employer’s business and from which Employer derives independent, economic value, which have not been disclosed to the general public and which are subject to Employer’s efforts to maintain the information as secret and/or confidential. In particular, but without limiting the foregoing, Employee acknowledges and stipulates that Employer has compiled and developed customer and vendor lists, specialized training techniques, cultivated customer and vendor relationships, and built goodwill over an extended period of time in the provision of its services which is deemed highly confidential, trade secret and proprietary

 

Exhibit 10.1 Page 10 of 27

 

 

 

 

information (hereinafter the information which is the subject of this Paragraph shall be referred to, collectively as “Confidential Business Information.”). Employee recognizes and acknowledges that the Confidential Business Information, in any form or medium, belongs to and shall remain the exclusive property of Employer and constitutes proprietary information and trade secrets of Employer. Upon termination of Employee’s employment with Employer for any reason, Employee represents, warrants and agrees that for a period of ten (10) years thereafter for trade secrets, or for a period of two (2) years thereafter in all other instances, Employee will keep any and all Confidential Business Information from being known or disclosed (directly or indirectly) to any person or entity, except for the exclusive use and benefit of Employer.

 

4.    Termination Of Employment. Upon termination of Employee’s employment with Employer for any reason, Employee agrees to immediately surrender and return to Employer all documents, information, records, materials, notebooks, devices, and any other materials in any medium whatever in Employee’s possession or under Employee’s control which contain, may contain or be derived from the Confidential Business Information, together with all documents, notes or other work product which is in any way connected with or derived from Employee’s services to, or affiliation with, the Employer and shall certify in writing that he/she has done so. Employee acknowledges that he/she shall never derive any proprietary interest in or right to any of the work product which he/she or others develop or use, or which may arise out of Employee’s employment by Employer.

 

5.    Covenant Not To Compete And Not Solicit. Employee acknowledges and agrees that Employer would be unable to protect the Confidential Business Information against unauthorized use or disclosure and would be unable to disclose to Employee the Confidential Business Information unless Employee agreed to the covenants contained herein and described in this Paragraph. Employee covenants that so long as Employee is an employee of Employer and for a period of two (2) years thereafter, Employee will not:

 

	 	
			a.

				
			Directly or indirectly engage in any business that is in actual or prospective competition with Employer whether as a principal, officer, director, proprietor, employee, contractor, partner, investor, advisor, agent, representative or other participant. This Paragraph shall not however, prohibit Employee from owning stock in any publicly traded corporation so long as such ownership does not exceed five percent (5%) of the total value of the outstanding stock of such corporation;

			

 

	 	
			b.

				
			Directly or indirectly, solicit or otherwise attempt to induce or solicit, or in any other manner influence, any current or future employee or vendor of Employer to terminate or modify his/her/its relationship with Employer. Employee acknowledges and agrees that Employer has a legitimate business interest in prohibiting Employee from soliciting or interfering with Employer’s current and future employees and vendors; and

			

 

	 	
			c.

				
			Directly or indirectly solicit or otherwise attempt to induce or solicit, or in any other manner influence, any customer or prospective customer of Employer for any business purpose other than for the benefit of Employer. Employee acknowledges and agrees that Employer has a legitimate business interest in prohibiting Employee from soliciting its customers or prospective customers.

			

 

Exhibit 10.1 Page 11 of 27

 

 

 

 

6.    Reasonableness of Restrictions. Employee acknowledges and agrees that

the restrictions contained in Paragraphs 3 and 5 above including, but not limited to, the time period of the restrictions, the geographic areas of the restrictions, and the scope of the restrictions, are fair and reasonable and are not the result of overreaching, duress or coercion of any kind. Employee also acknowledges and agrees that his/her full, uninhibited and faithful observance of the covenants contained in this Agreement will not cause any undue hardship, financial or otherwise, and that the enforcement of each of the covenants contained in this Agreement will not impair his/her ability to obtain gainful employment acceptable without violating this Agreement in the event Employee’s employment with Employer terminates for any reason whatsoever, and that there are numerous other employment and business opportunities available to Employee that are not affected by the restrictions set forth in this Agreement. Employee further acknowledges and agrees that the restrictions set forth in this Agreement do not impose any greater restraint than is necessary to protect the goodwill, proprietary information and other legitimate business interests of Employer and its affiliated entities, officers, directors, shareholders and employees.

 

7.    Remedies. Employee acknowledges and agrees that the Confidential Business Information described in this Agreement is a unique and valuable asset of Employer, and that Employer will be irreparably damaged if this Agreement is not enforced. Employee also acknowledges and agrees that in the event of Employee’s breach (whether actual, implied or threatened) of any of the terms, conditions or provisions of this Agreement, Employer’s remedies at law shall be inadequate. Accordingly, Employee acknowledges and agrees that in such event, Employer shall have the right to specific performance and/or injunctive relief without being required to show any actual damage to Employer or to post an injunction bond in addition to any and all other remedies and rights at law or in equity, all of which shall be cumulative. Employee further acknowledges and agrees that in the event that Employee violates the restrictions or obligations contained in this Agreement, the period of those restrictions and obligations shall be extended by a period of time equal to that period beginning when such violation commenced and ending when the activities constituting such violations cease. If an action and/or lawsuit should have to be brought by Employer against Employee to enforce the provisions of this Agreement or as a result of the breach thereof, Employee acknowledges and agrees that Employer shall be entitled to preliminary and permanent injunctive relief, actual damages, exemplary or punitive damages, as well as an award of reasonable attorney’s fees in the trial and appellate courts and costs and expenses of investigation and litigation. Moreover, Employer and Employee stipulate and agree that Employer shall be deemed to be the prevailing party (and therefore entitled to recover all of its reasonable attorney’s fees, costs and expenses) in any litigation concerning this Agreement (whether or not a court, for whatever reason, determines not to permanently and/or temporarily enjoin Employee from said employment), if Employer proves by a preponderance of the evidence that (i) Employee has disclosed or used any Confidential Business Information in violation of this Agreement; (ii) Employee has retained any Confidential Business Information or documentation which Employee was required by this Agreement to return to Employer; or (iii) Employee has engaged in any conduct violating the non-compete, non-solicitation or other terms of this Agreement.

 

8.    Waiver Of Trial By Jury. The parties to this Agreement know and understand that they have a constitutional right to a jury trial. The parties acknowledge that any dispute or controversy that may arise out of this Agreement will involve complicated and difficult factual and legal issues. The parties

 

Exhibit 10.1 Page 12 of 27

 

 

 

 

hereby waive any right to trial by jury in any proceeding arising out of or relating in any way to this Agreement, whether sounding in contract, tort or otherwise. The parties agree that either of them may file a copy of this Paragraph with any court as written evidence of the knowing, voluntary and bargained-for agreement between them to irrevocably waive trial by jury and that any proceeding whatsoever between them arising out of or relating in any way to this Agreement shall instead be tried by a court of competent jurisdiction by a judge sitting without a jury.

 

9.    Binding Effect. This Agreement may be assigned by Employer and shall inure to the benefit of Employer, its successors and assigns. This Agreement may not be assigned or transferred by Employee to any other person or entity.

 

10.    Severability. Should any part of this Agreement be held unenforceable or in conflict with the applicable laws or regulations of any jurisdiction, the invalid or unenforceable part or provision shall be replaced with a provision which accomplishes, to the extent possible, the original business or conciliatory purpose of such part or provision in a valid and enforceable manner, the remainder of this Agreement shall remain binding upon the parties. Specifically, Employer and Employee agree that in the event any court shall hold that the time, geographical area or any other provision stated in this Agreement constitute an unreasonable restriction on Employee, Employee hereby expressly agrees that the provisions of this Agreement shall not be rendered void, but shall apply to a term, geographical area or to such other extent as a court may deem a reasonable restriction under the circumstances.

 

11.    Governing Law and Venue. This Agreement is entered into in the State of Florida and shall be governed by and interpreted solely in accordance with the laws of the State of Florida, without regard to conflicts of laws provisions. Any action to enforce or relating to this Agreement shall be brought and decided in the state courts of Florida, and may not be removed to federal court. The parties consent to and submit themselves to the jurisdiction of the state courts of Florida with respect to any such action.

 

12.    Non-Waiver. Waiver by any party of any breach of any provision of this Agreement shall not be considered as or constitute a continuing waiver or a waiver of any other breach of the same or any other provision of this Agreement.

 

13.    Entire Agreement. This Agreement constitutes a single, fully integrated agreement expressing and representing the entire agreement and understanding of the parties as of the date of execution hereof with respect to the subject matter hereof, and supersedes all prior and contemporaneous oral and written agreements, negotiations, discussions, understandings, representations, statements and writings between the parties relating thereto and with respect to the subject matter hereof. There are no other agreements, written or oral, express or implied, between the parties hereto concerning the subject matter of this Agreement. No modification, alteration, amendment, waiver or change in any of the terms of this Agreement shall be valid or binding upon the parties hereto unless made in writing and duly executed by the parties to be bound thereto. Employee understands that this Agreement is not an employment agreement, and does not replace, alter, or supersede the at-will employment relationship between Employer and Employee, or any other Agreements that may exist between Employer and Employee including, but not limited to, work policies, hours, job duties, and compensation.

 

Exhibit 10.1 Page 13 of 27

 

 

 

 

14.    Communications. All notices or other communications which are required or permitted hereunder shall be in writing and deemed sufficient if delivered personally or sent by registered or certified U.S. Mail or by a nationally recognized overnight courier to the addresses as set forth in this Agreement or such other addresses as may be designated by the parties.

 

15.    Counterparts. This Agreement may be executed by the parties in separate counterparts and/or by facsimile, each of which when so executed and delivered shall be an original and binding and enforceable, but all such counterparts shall together constitute but one and the same instrument.

 

16.    Headings and Captions. The titles or captions of paragraphs and subparagraphs contained in this Agreement are for convenience and reference only and shall not be construed to define, limit, extend, or describe the scope of this Agreement nor the intent of any provision.

 

17.    Employer’s Discretion To Reduce Scope Of Covenants. Employee understands, acknowledges and agrees that Employer shall have the right, in its sole discretion, to reduce the scope of any covenants set forth in this Agreement without Employee’s consent, effective immediately upon receipt by Employee of written notice thereof from Employer.

 

 

 

IN WITNESS WHEREOF, this Agreement is made and entered into as of the date first above written.

 

 

 

	
			Employee: 

				Menderes Akdag	 
	 	 	 
	
			Signature:

				/S/ Menderes Akdag	   Date:  11-12-2012 
	 	 	 
	
			Address:

				7136 NE 80th Drive	 
	 	 	 
	
			 

				Boca Raton, FL 33487	 
	 	 	 
	 	 	 
	 	 	 
	
			For:

				PETMED EXPRESS, INC., a Florida corporation
	 	 	 
	 	 	 
	
			By:

				/S/ Debbie Friedman	
			   Date:  11/12/12 

			
	 	 	 
	 	 	 
	
			Name:

				Debbie Friedman	 
	 	 	 
	 	 	 
	
			Title:

				HR Director	 

 

Exhibit 10.1 Page 14 of 27

 

 

 

 

EXHIBIT “B”

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (this "Agreement") is made and entered into this 26 day of July, 2019, by and between Mendo Akdag (the "Indemnified Party") and PetMed Express, Inc., a Florida corporation (the "Corporation").

 

W I T N E S S E T H:

 

WHEREAS, it is essential to the Corporation to retain and attract as directors and officers the most capable persons available; and

 

WHEREAS, the substantial increase in corporate litigation subjects directors and officers to expensive litigation risks at the same time that the availability of directors' and officers' liability insurance is limited; and

 

WHEREAS, in addition, the indemnification provisions of the Florida Business Corporation Act (the "FBCA," as further defined below) expressly provide that such provisions are non-exclusive; and

 

WHEREAS, the Indemnified Party does not regard the protection available under the Articles of Incorporation and Bylaws of the Corporation and insurance, if any, as adequate in the present circumstances, and considers it a necessary condition to the Indemnified Party's agreement to serve as a director and/or officer of the Corporation to have adequate protection and appropriate contractual rights to indemnification from the Corporation, and the Corporation desires the Indemnified Party to serve in such capacity or capacities and to have such protection and rights as set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained in this Agreement, it is hereby agreed as follows:

 

1. Definitions. For the purposes of this Agreement, the terms below shall have the indicated meanings except where the context in which such a term is used in this Agreement clearly indicates otherwise:

 

(a) Affiliate means, as to any Person (the "first Person"), any other Person that, either directly or indirectly, controls, is controlled by or is under common control with the first Person; and the term "control" (including in correlative meaning, the terms "controlled by" and "under common control with"), as used with respect to any first Person, means the possession by any other Person, either directly or indirectly, of the power to direct, or to cause the direction of, the management and policies of the first Person, whether through the ownership of voting securities, by contract or otherwise.

 

(b) Associate means, as to any Person, a director, officer, employee, agent, consultant, independent contractor, stockholder or partner of such Person.

 

(c) Board means the Board of Directors of the Corporation.

 

Exhibit 10.1 Page 15 of 27

 

 

 

 

 

(d) Evaluation Date means, as to any Indemnification Notice, the date that is thirty (30) calendar days after the date of receipt by the Board of such Indemnification Notice.

 

(e) Expenses means any and all costs or expenses (other than Liabilities), including but not limited to Legal Fees, and including interest on any of the foregoing, actually and reasonably paid or incurred by the Indemnified Party on account of or in connection with any Proceeding; and Expense means any one of the Expenses.

 

(f) Expense Advance Request means the request provided for by Section 2(b)(iv) of this Agreement.

 

(g) FBCA means the Florida Business Corporation Act, Chapter 607, Florida Statutes, and any successor statute.

 

(h) Final Judicial Determination means a determination by a Court of competent jurisdiction as to which all rights of appeal therefrom have been exhausted or have lapsed.

 

(i) Hold Harmless Agreement means the agreement provided for by Section 2(c)(i) of this Agreement.

 

(j) Indemnification Notice means the notice provided for by Section 2(b) of this Agreement.

 

(k) Legal Fees means the fees and disbursements of legal counsel, legal assistants, experts, accountants, consultants and investigators, before and at trial, in appellate or bankruptcy proceedings and otherwise actually and reasonably paid or incurred by the Indemnified Party on account of or in connection with any Proceeding.

 

(l) Liabilities means any and all liabilities of every type whatsoever (other than an Expense), including, but not limited to, judgments, assessments, fines, penalties, excise or other taxes and amounts paid in settlement, and including interest on any of the foregoing, actually and reasonably paid, incurred or suffered by the Indemnified Party on account of or in connection with any Proceeding; and Liability means any one of the Liabilities.

 

(m) Non-indemnifiable Conduct means any act or omission to act of the Indemnified Party material to a Proceeding as to which indemnification is sought under this Agreement, which act or omission to act is not subject to indemnification by the Corporation under the provisions of Section 607.0850, Florida Statutes, or any other then-applicable law.

 

(n) Person means any natural person or individual, or any artificial person, including any corporation, association, unincorporated organization, partnership, joint venture, firm, company, business, trust, business trust, limited liability company, government, public body or authority, governmental agency or department, and any other entity.

 

Exhibit 10.1 Page 16 of 27

 

 

 

 

(o) Plan means any employee benefit or welfare benefit plan sponsored by the Corporation or any of its Affiliates.

 

(p) Proceeding means any threatened, pending or completed claim, demand, inquiry, investigation, action, suit or proceeding, regarding any matter (including but not limited to matters arising under or relating to federal or state securities laws, laws relating to the protection of the environment, the Employee Retirement Income Security Act of 1974 ("ERISA") or other laws for the benefit or protection of employees, federal or state tax laws, laws relating to discrimination against persons or groups, or any other civil or criminal law), whether formal or informal, or whether brought by or in the right of the Corporation, whether brought by a governmental body, agency or representative or by any other Person, and whether of a civil, criminal, administrative or investigative nature, and includes any Third Party Proceeding.

 

(q) Third Party Proceeding means any Proceeding against the Indemnified Party by, or any Proceeding by the Indemnified Party against, any third party.

 

2. Indemnification Generally.

 

(a) Extent of Indemnity.

 

(i) Grant of Indemnity. The Corporation shall indemnify the Indemnified Party to the fullest extent permitted by applicable law in effect on the date hereof as such law may from time to time be amended (but, in the case of any such amendment, only to the extent such amendment permits the Corporation to provide broader indemnification rights and protection than the law permitted the Corporation to provide before such amendment). Without in any manner limiting the generality of the immediately preceding sentence, but subject to and upon the terms and conditions of this Agreement, the Corporation shall indemnify and hold harmless the Indemnified Party in respect of:

 

(1) any and all Liabilities that may be incurred or suffered by the Indemnified Party as a result of or arising out of prosecuting, defending, settling, investigating or being a witness in any Proceeding in which the Indemnified Party may be or may have been involved as a party or otherwise, arising out of the fact that the Indemnified Party is or was an Associate of the Corporation or any of its Affiliates, or serves or served as an Associate in or for any Person at the request of the Corporation (including without limitation service as a trustee or in any other fiduciary or similar capacity for or in connection with any Plan maintained by the Corporation or any of its Affiliates or for the benefit of any of the employees of the Corporation or any of its Affiliates, or service on any trade association, civic, religious, educational or charitable boards or committees);

 

(2) any and all Liabilities that may be incurred or suffered by the Indemnified Party as a result of or arising out of or in connection with any attempt (regardless of its success) by any Person to charge or cause the Indemnified Party to be charged with wrongdoing or with financial responsibility for damages arising out of or incurred in connection with the matters indemnified against in this Agreement; and

 

Exhibit 10.1 Page 17 of 27

 

 

 

 

(3) any and all Expenses that may be incurred or suffered by the Indemnified Party as a result of or arising out of, incident to or in connection with any of the matters indemnified against in this Agreement.

 

(ii) Coordination With Insurance. The obligations of the Corporation under this Agreement are not conditioned in any way on any attempt, whether or not successful, by the Indemnified Party or by the Corporation to collect from an insurer any amount under any insurance policy.

 

(iii) Limitations. In no case shall any indemnification or advancement or payment of Expenses be provided under this Agreement to or on behalf of or for the direct or indirect benefit of the Indemnified Party by the Corporation:

 

(1) In any Proceeding brought by or in the name or interest of the Indemnified Party against the Corporation, except as set forth in Section 6(e) of this Agreement;

 

(2) In any Proceeding brought by the Corporation against the Indemnified Party, which action is initiated at the direction of the Board, except as set forth in Section 6(e) of this Agreement; or

 

(3) for any Non-indemnifiable Conduct, but no limitation contained in this Section 2(a)(iii)(3) shall prohibit or otherwise restrict, or provide the Corporation with a basis to withhold payments with respect to, the indemnification of the Indemnified Party (subject to the repayment provisions of Section 2(g) of this Agreement) unless and until a determination is made pursuant to the provisions of this Agreement that the Indemnified Party's actions or omissions to act constitute such Non-indemnifiable Conduct.

 

(b) Claims for Indemnification.

 

(i) Submission of Claims. Whenever any claims shall arise for indemnification under this Agreement, the Indemnified Party shall notify the Corporation as promptly as reasonably practicable after the Indemnified Party has actual knowledge of the facts constituting the basis for such claim (an "Indemnification Notice"). The Indemnification Notice shall specify in reasonable detail the facts known to the Indemnified Party giving rise to such indemnification right, the positions and allegations of the parties to any related Proceeding and the factual bases therefor, and the amount or an estimate of the amount of Liabilities and Expenses reasonably expected to arise therefrom (or a statement to the effect that such Liabilities and Expenses cannot be reasonably estimated). A delay by the Indemnified Party in providing such notice shall not relieve the Corporation from its obligations under this Agreement unless and then only to the extent that the Corporation is materially and adversely affected by the delay. If the Indemnified Party desires to personally retain the services of an attorney in connection with any Proceeding, the Indemnified Party shall notify the Corporation of such desire in the Indemnification Notice relating thereto, and such notice shall identify the counsel to be retained.

 

(ii) Presumption of Right to Indemnification. Upon submission of an Indemnification Notice to the Corporation, the Board shall review such Indemnification Notice and endeavor to

 

Exhibit 10.1 Page 18 of 27

 

 

 

 

determine whether the Indemnified Party is entitled to indemnification under this Agreement with respect to the matters described therein. As of the Evaluation Date, unless the Board has reasonably determined that the Indemnified Party is not entitled to indemnification under this Agreement with respect to the matters described in such Indemnification Notice, there shall be created a presumption that the Indemnified Party is entitled to such indemnification. Such presumption shall continue, and indemnification shall be provided under this Agreement, unless and until such time as the Board shall reasonably determine that the Indemnified Party is not entitled to indemnification under this Agreement. This paragraph is procedural only and shall not affect the right of the Indemnified Party to indemnification under this Agreement. Any determination by the Board that the Indemnified Party is not entitled to indemnification under this Agreement and any failure to make any advancements or payments requested in an Indemnification Notice or otherwise shall be subject to judicial review.

 

(iii) Limitation on Adverse Determinations by the Board. Subject to applicable law, no determination by the Board that the Indemnified Party is not entitled to indemnification under this Agreement shall be given effect under this Agreement unless (i) such determination is made in good faith and is based upon clear and convincing evidence, (ii) such determination is made by a vote of a majority of the Corporation's directors at a meeting at which a quorum is present, and (iii) the Indemnified Party is given written notice of such meeting at least 10 days in advance of such meeting and is given a meaningful opportunity to present at such meeting information in support of the claim for indemnification.

 

(iv) Expenses.

 

(1) With respect to any Proceeding as to which the Indemnified Party is entitled (or is presumed to be entitled) to indemnification under this Agreement, Expenses incurred or required to be incurred by or on behalf of the Indemnified Party in connection with such Proceeding, but prior to the final disposition of such Proceeding, shall be advanced or paid or caused to be advanced or paid by the Corporation to or on behalf of the Indemnified Party notwithstanding that there has been no final disposition of such Proceeding, to the extent provided in the immediately following paragraph.

 

(2) For purposes of determining whether to authorize advancement or payment of Expenses pursuant to the immediately preceding paragraph, the Indemnified Party shall from time to time submit to the Board a statement requesting advancement of Expenses (an "Expense Advance Request"). Each Expense Advance Request shall set forth (i) in reasonable detail, all Expenses already incurred or required to be incurred by the Indemnified Party and the reason therefor, and (ii) an undertaking by the Indemnified Party, in form and substance reasonably satisfactory to the Corporation, to repay all of the Expenses advanced or paid by the Corporation if it shall ultimately be determined that the Indemnified Party is not entitled to be indemnified with respect to such Proceeding by the Corporation under this Agreement or otherwise. Upon receipt of an Expense Advance Request satisfying the foregoing requirements, as to each Expense set forth therein, unless the Board reasonably determines that the Indemnified Party is not entitled to advancement or payment of such Expense, the Corporation shall, within 10 business days thereafter (or, if later as to any Expense yet to be incurred by the Indemnified Party, on or before the date that is three business days prior to the date such Expense is required

 

Exhibit 10.1 Page 19 of 27

 

 

 

 

to be paid by the Indemnified Party), pay or cause to be paid by the Corporation the amount of such Expense to or on behalf of the Indemnified Party. No security shall be required in connection with any Expense Advance Request, and the ability or inability of the Indemnified Party to make repayment shall not be considered in any evaluation of an Expense Advance Request.

 

(c) Rights to Defend or Settle; Third Party Proceedings, etc.

 

(i) Corporation's Right to Defend or Settle. If, at any time, the Corporation shall provide the Indemnified Party with an agreement in writing, in form and substance reasonably satisfactory to the Indemnified Party and the Indemnified Party's counsel, agreeing to indemnify, defend or prosecute and hold the Indemnified Party harmless from all Liabilities and Expenses arising from any Third Party Proceeding (a "Hold Harmless Agreement"), and demonstrating to the reasonable satisfaction of the Indemnified Party the Corporation's financial ability to accomplish such indemnification, the Corporation may thereafter at its own expense undertake full responsibility for the defense or prosecution of such Third Party Proceeding. The Corporation may contest or settle any such Third Party Proceeding for money damages on such terms and conditions as it deems appropriate but shall be obligated to consult in good faith with the Indemnified Party and not to contest or settle any Third Party Proceeding involving injunctive or equitable relief against or affecting the Indemnified Party or the Indemnified Party's properties or assets without the prior written consent of the Indemnified Party, such consent not to be withheld unreasonably. The Indemnified Party may participate at the Indemnified Party's own expense and with the Indemnified Party's own counsel in the defense or prosecution of a Third Party Proceeding controlled by the Corporation. Such participation shall not relieve the Corporation of its obligation to indemnify the Indemnified Party under this Agreement with respect to such Third Party Proceeding.

 

(ii) Indemnified Party's Rights to Settle or Defend. If the Corporation fails to deliver a reasonably satisfactory Hold Harmless Agreement and evidence of financial ability as contemplated by the preceding paragraph within 10 days after receipt by the Board of an Indemnification Notice, the Indemnified Party may contest or settle the Third Party Proceeding on such terms as the Indemnified Party sees fit but shall not reach a settlement with respect to the payment of money damages without consulting in good faith with the Corporation. The Corporation may participate at its own expense and with its own counsel in defense or prosecution of a Third Party Proceeding pursuant to this Section 2(c)(ii), but any such participation shall not relieve the Corporation of its obligations to indemnify the Indemnified Party under this Agreement. As to any Third Party Proceeding as to which the Indemnified Party is entitled (or is presumed to be entitled) to indemnification under this Agreement, unless and until such time as the Corporation at its own expense undertakes full responsibility for and control of the defense or prosecution of such Third Party Proceeding, the Indemnified Party shall be entitled to indemnification under this Agreement with respect any Expenses of the Indemnified Party, including Legal Fees, relating to such Third Party Proceeding. Notwithstanding the foregoing, the Corporation may at any time deliver to the Indemnified Party a reasonably satisfactory Agreement of Indemnity and evidence of financial ability as contemplated by the preceding paragraph, and thereafter at its own expense undertake full responsibility for and control of the defense or prosecution of such Third Party Proceeding.

 

Exhibit 10.1 Page 20 of 27

 

 

 

 

(iii) Expenses as to Third Party Proceeding. All Expenses incurred in defending or prosecuting any Third Party Proceeding shall be advanced or paid in accordance with the procedure set forth in Section 2(b)(iv) of this Agreement.

 

(iv) Addressing Liens, Attachments, Etc. If by reason of any Third Party Proceeding as to which the Indemnified Party is entitled (or is presumed to be entitled) to indemnification under this Agreement, a lien, attachment, garnishment or execution is placed upon any of the property or assets of the Indemnified Party, the Corporation shall promptly furnish a reasonably satisfactory indemnity bond to obtain the prompt release of such lien, attachment, garnishment or execution.

 

(v) Cooperation. The Indemnified Party shall cooperate in the prosecution or defense of any Third Party Proceeding that is controlled by the Corporation, but the Indemnified Party shall continue to be entitled to advancement or payment of Expenses incurred by him or her in connection therewith as provided in this Agreement.

 

(d) Powers of Attorney; Access to Records. The parties to this Agreement shall execute such powers of attorney as may be necessary or appropriate to permit participation of counsel selected by any party hereto and, as may be reasonably related to any such proceeding, shall provide to the counsel, accountants and other representatives of each party access during normal business hours to all properties, personnel, books, records, contracts, commitments and all other business records of such other party and will furnish to such other party copies of all such documents as may be reasonably requested (certified, if requested).

 

(e) Choice of Counsel. In all matters as to which indemnification is or may be available to the Indemnified Party under this Agreement, the Indemnified Party shall be free to choose and retain counsel, provided that the Indemnified Party shall secure the prior written consent of the Corporation as to such selection, which consent shall not be unreasonably withheld.

 

(f) Consultation. If the Indemnified Party desires to retain the services of an attorney prior to the determination by the Corporation as to whether it will undertake the defense or prosecution of the Third Party Proceeding as provided in Section 2(c) of this Agreement, the Indemnified Party shall notify the Corporation of such desire in the Indemnification Notice delivered pursuant to Section 2(b)(i), and such Indemnification Notice shall identify the counsel to be retained. The Corporation shall then have 10 days within which to advise the Indemnified Party whether it will assume the defense or prosecution of the Third Party Proceeding in accordance with Section 2(c)(i) hereof. If the Indemnified Party does not receive an affirmative response within such ten-day period, he or she shall be free to retain counsel of his or her choice, and the indemnity provided in Section 2(a) shall apply to the Expenses incurred by the Indemnified Party after the expiration of such 10-day period. Expenses incurred by the Indemnified Party prior to the expiration of such 10-day period shall be covered by the indemnity of Section 2(a), to the extent that representation prior to the expiration of the 10-day period is determined by the Board to be necessary to protect any material interests of the Indemnified Party.

 

Exhibit 10.1 Page 21 of 27

 

 

 

 

(g) Repayment. Notwithstanding the other provisions of this Agreement to the contrary, if the Corporation has paid or advanced any Liabilities or Expenses under this Agreement (including pursuant to an Expense Advance Request) to, on behalf of or for the benefit of the Indemnified Party and if it is determined, by a Final Judicial Determination, that the Indemnified Party's actions or omissions to act constituted Non-indemnifiable Conduct or that the Indemnified Party otherwise is not or was not entitled to such payment or advance or that the Indemnified Party is required to reimburse or repay the Corporation for the amount thereof, the Indemnified Party shall and does hereby undertake in such circumstances to reimburse the Corporation for any and all such amounts previously paid to or for the benefit of the Indemnified Party. Such reimbursement shall be without interest, except that interest calculated as provided in Section 5(e)(ii) shall begin to accrue 20 days after the date of the Final Judicial Determination.

 

3. Representations and Agreements of the Corporation.

 

(a) Authority. The Corporation represents, covenants and agrees that it has the corporate power and authority to enter into this Agreement and to carry out its obligations under this Agreement. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement have been duly authorized by the Board. This Agreement is a valid and binding obligation of the Corporation and is enforceable against the Corporation in accordance with its terms.

 

(b) Non-contestability. The Corporation represents, covenants and agrees that it will not initiate, and that it will use its best efforts to cause any of its Affiliates not to initiate, any action, suit or proceeding challenging the validity or enforceability of this Agreement.

 

4. Good Faith Judgment. The Corporation represents, covenants and agrees that it will exercise good faith judgment in determining the entitlement of the Indemnified Party to indemnification under this Agreement.

 

5. Relationship of this Agreement to Other Indemnities.

 

(a) Non-exclusivity.

 

(i) This Agreement and all rights granted to the Indemnified Party under this Agreement are in addition to and shall not be deemed to be exclusive with or of any other rights that may be available to the Indemnified Party under any Articles of Incorporation, bylaw, statute, agreement, or otherwise. To the extent that any change to applicable law (whether by statute or judicial decision) shall permit any broader indemnification by agreement than would be afforded under the provisions of this Agreement, it is the intent of the parties to this Agreement that the Indemnified Party shall enjoy by this Agreement the broader rights and protection so afforded by such change.

 

(ii) The rights, duties and obligations of the Corporation and the Indemnified Party under this Agreement do not limit, diminish or supersede the rights, duties and obligations of the Corporation and the Indemnified Party with respect to the indemnification afforded to the Indemnified Party under any liability insurance, the FBCA, or under the bylaws or the Articles of

 

Exhibit 10.1 Page 22 of 27

 

 

 

 

Incorporation of the Corporation. In addition, the Indemnified Party's rights under this Agreement will not be limited or diminished in any respect by any amendment to the bylaws or the Articles of Incorporation of the Corporation.

 

(b) Availability, Contribution, Subrogation, Etc.

 

(i) The availability or non-availability of indemnification by way of any insurance policy, Articles of Incorporation, bylaw, vote of stockholders, or otherwise from the Corporation to the Indemnified Party shall not affect the right of the Indemnified Party to indemnification under this Agreement, provided that all rights under this Agreement shall be subject to applicable statutory provisions in effect from time to time, except as otherwise expressly provided by this Agreement.

 

(ii) Notwithstanding any contrary provisions contained in this Agreement, any funds received by the Indemnified Party by way of indemnification or payment from any source other than from the Corporation under this Agreement shall reduce any amount otherwise payable to the Indemnified Party under this Agreement.

 

(iii) If the Indemnified Party is entitled under any provision of this Agreement to indemnification by the Corporation for some claims, issues or matters, but not as to other claims, issues or matters, or for some or a portion of Liabilities or the Expenses actually and reasonably incurred by him or her or amounts actually and reasonably paid in settlement by him or her in the investigation, defense, appeal or settlement of any matter for which indemnification is sought under this Agreement, but not for the total amount thereof, the Corporation shall indemnify the Indemnified Party for the portion of such claims, issues or matters, or the portion of such Liabilities or Expenses to which the Indemnified Party is entitled.

 

(iv) If for any reason it is determined by a court of competent jurisdiction, in a decision which neither party to this Agreement properly appeals or which decision is affirmed on appeal, that the indemnity provided under this Agreement is unavailable, or if for any reason the indemnity under this Agreement is insufficient to hold the Indemnified Party harmless as provided in this Agreement, then, in any such event, the Corporation shall contribute to the amounts paid or payable by the Indemnified Party in such proportion as equitably reflects the relative benefits received by, and fault of, the Indemnified Party and the Corporation and its Affiliates and its and their respective Associates.

 

6. Miscellaneous.

 

(a) All notices, requests, demands and other communications which are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given when received if personally delivered; when transmitted if transmitted by telecopy, electronic telephone line facsimile transmission or other similar electronic or digital transmission method; the day after it is sent, if sent by recognized overnight delivery service with all fees payable by the sender; and five days after it is sent, if mailed, first class mail, postage prepaid. In each case notice shall be sent to:

 

Exhibit 10.1 Page 23 of 27

 

 

 

 

If to the Indemnified Party:

 

the Indemnified Party's address on file with the Corporation

 

If to the Corporation:

 

the Corporation's principal executive offices, Attention Chief Executive Officer to such other address as either party may have specified in writing to the other using the procedures specified above in this Section 6(a).

 

(b) Governing Law. This Agreement shall be construed pursuant to and governed by the substantive laws of the State of Florida (but any provision of Florida law shall not apply if the application of such provision would result in the application of the law of a state or jurisdiction other than Florida).

 

(c) Severability. Any provision of this Agreement that is determined by a court of competent jurisdiction to be prohibited, unenforceable or not authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition, unenforceability or non-authorization without invalidating the remaining provisions hereof or affecting the validity, enforceability or legality of such provision in any other jurisdiction. In any such case, such determination shall not affect any other provision of this Agreement, and the remaining provisions of this Agreement shall remain in full force and effect. If any provision or term of this Agreement is susceptible to two or more constructions or interpretations, one or more of which would render the provision or term void or unenforceable, the parties agree that a construction or interpretation which renders the term or provision valid shall be favored.

 

(d) Specific Enforcement; Presumption.

 

(i) The parties agree and acknowledge that in the event of a breach by the Corporation of its obligations under this Agreement, or a breach of any other material provision of this Agreement, damages at law will be an insufficient remedy to the Indemnified Party. Accordingly, the parties agree that, in addition to any other remedies or rights that may be available to the Indemnified Party, the Indemnified Party shall also be entitled, upon application to a court of competent jurisdiction, to obtain temporary or permanent injunctions to compel specific performance of the obligations of the Corporation under this Agreement.

 

(ii) There shall exist in any action to enforce the rights of the Indemnified Party under this Agreement a rebuttable presumption that the Indemnified Party is entitled to indemnification under this Agreement, and the burden of proving that the Indemnified Party is not entitled to indemnification under this Agreement shall be on the Corporation. Neither the failure of the Corporation (through the Board or independent legal counsel), prior to the commencement of such action, to have made a determination that the Indemnified Party is entitled to indemnification under this Agreement, nor an actual determination by the Corporation (through the Board or independent legal counsel) that the Indemnified Party is not entitled to indemnification under this Agreement, shall (X) constitute a defense to the action, (Y) create a presumption that the Indemnified Party is not entitled to indemnification under this Agreement,

 

Exhibit 10.1 Page 24 of 27

 

 

 

 

or (Z) otherwise alter the presumption in favor of the Indemnified Party referred to in the immediately preceding sentence.

 

(e) Cost of Enforcement; Interest.

 

(i) If the Indemnified Party engages the services of an attorney or any other third party or in any way initiates legal action to enforce his rights under this Agreement, including but not limited to the collection of monies due from the Corporation to the Indemnified Party, the prevailing party shall be entitled to recover all reasonable costs and expenses (including reasonable attorneys' fees before and at trial, in appellate proceedings and otherwise). Should the Indemnified Party prevail, such costs and expenses shall be in addition to monies otherwise due the Indemnified Party under this Agreement.

 

(ii) If any monies shall be due the Indemnified Party from the Corporation under this Agreement (including under an Expense Advance Request) and shall not be paid within 30 days from the date of written request for payment, interest shall accrue on such unpaid amount at the rate of 2% per annum in excess of the prime rate announced from time to time by Citibank, New York, New York, or such lower rate as may be required to comply with applicable law from the date when due until it is paid in full.

 

(f) No Assignment. Any claim, right, title, benefit, remedy or interest of the Indemnified Party in, to or under or arising out of or in connection with this Agreement is personal and may not be sold, assigned, transferred, pledged or hypothecated, but the provisions of this Agreement shall survive the death, disability or incapacity of the Indemnified Party or the termination of the Indemnified Party's services as a director or officer of the Corporation, or in any other capacity as to which indemnification is available under this Agreement, and shall inure to the benefit of the Indemnified Party's heirs, devisees, executors, administrators and other legal representatives. This Agreement shall inure to the benefit of and shall be binding upon the successors in interest and assigns of the Corporation, including any successor corporation resulting from a merger, consolidation, recapitalization, reorganization, sale of all or substantially all of the assets of the Corporation, or any other transaction resulting in the successor corporation assuming the liabilities of the Corporation under this Agreement (by operation of law or otherwise).

 

(g) No Third Party Beneficiaries. This Agreement is not intended to benefit, and has not been entered into for the benefit of, any third parties and, other than as set forth in the preceding paragraph as to heirs, devisees, assignees, executors, administrators, other legal representatives and successors, nothing in this Agreement, whether express or implied, is intended or should be construed to confer upon, or to grant to, any Person, except the Corporation and the Indemnified Party, any claim, right, benefit or remedy under or because of this Agreement or any provision set forth in this Agreement.

 

(h) Construction. As used in this Agreement, (1) the word "including" is always without limitation; and (2) the words in the singular number include words of the plural number and vice versa; and the use of any gender shall include all genders where the context so permits.

 

Exhibit 10.1 Page 25 of 27

 

 

 

 

(i) Further Assurances. The parties to this Agreement shall execute and deliver, or cause to be executed and delivered, such additional or further documents, agreements or instruments and shall cooperate with one another in all respects for the purpose of carrying out the intent of the parties as expressed in this Agreement.

 

(j) Venue; Process. The parties to this Agreement agree that jurisdiction and venue in any action brought pursuant to this Agreement to enforce its terms or otherwise with respect to the relationships between the parties shall properly lie in the Circuit Court of the State of Florida in and for Palm Beach County, or in the United States District Court for the Southern District of Florida. Such jurisdiction and venue are merely permissive; jurisdiction and venue shall also continue to lie in any court where jurisdiction and venue would otherwise be proper. The parties agree that they will not object that any action commenced in the foregoing jurisdictions is commenced in a forum non conveniens. The parties further agree that the mailing by certified or registered mail, return receipt requested, of any process required by any such court shall constitute valid and lawful service of process against them, without the necessity for service by any other means provided by statute or rule of court.

 

(k) Waiver and Delay. Any term or provision of this Agreement may be waived at any time by the party entitled to the benefit of such waived term or provision by an instrument in writing duly executed by or on behalf of the party entitled to the benefit of such waived term or provision. No waiver by any party to this Agreement of any term or provision of this Agreement shall operate or be construed as a waiver of any other term or provision of this Agreement, whether or not similar. No delay on the part of any party in exercising any right, power or privilege under this Agreement shall operate as a waiver of any such right, power or privilege.

 

(l) Construction. Each party to this Agreement severally acknowledges and confirms that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be utilized in the interpretation or construction of this Agreement.

 

(m) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be considered an original, but all of which together shall constitute one and the same instrument.

 

Exhibit 10.1 Page 26 of 27

 

 

 

 

(n) Headings. The headings of the various sections in this Agreement are inserted for the convenience of the parties and shall not affect the meaning, construction or interpretation of this Agreement.

 

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

 

	 	
			PETMED EXPRESS, INC.

			 

			 

			By: /s/ Bruce S Rosenbloom

			 

			Name: Bruce S Rosenbloom

			 

			Title: CFO

			
	 	 
	 	 
	 	INDEMNIFIED PARTY:
	 	 
	 	 
	 	/s/ Menderes Akdag 
	 	(Signature)
	 	 
	 	Menderes Akdag 
	 	(Print Name)

 

Exhibit 10.1 Page 27 of 27Document

Exhibit 10.3

    One La-Z-Boy Drive
    MONROE, MICHIGAN 48162-5138
    PHONE: (734) 241-3067

Effective April 25, 2021

Melinda D. Whittington

Dear Melinda:

La-Z-Boy Incorporated (the “Company”) considers the establishment and maintenance of a sound and vital management to be essential to protecting and enhancing the best interests of the Company and its shareholders. In this connection, the Company recognizes that, as is the case with many publicly held corporations, the possibility of a change in control may arise and that such possibility, and the uncertainty and questions which it may raise among management, may result in the departure or distraction of management personnel to the detriment of the Company and its shareholders. The Company further recognizes that it is absolutely vital to the Company to retain well-qualified executives and to assure itself of continuity of management in considering any actual or threatened change of control of the Company. 

For the above reasons, the Board of Directors of the Company (the "Board") has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company's management to their assigned duties without distraction in circumstances arising from the possibility of a change in control of the Company. In particular, the Board believes that it is important, should the Company or its shareholders receive a proposal for transfer of control of the Company, that you be able to assess and advise the Company and its shareholders and to take such other action regarding such proposal as the Board might determine to be appropriate, without being influenced by the uncertainties of your own situation. 

In order to induce you to remain in the employ of the Company, this letter agreement (sometimes called the “Agreement”), which has been approved by the Board, sets forth the severance benefits which the Company agrees will be provided to you in the event your employment with the Company is terminated subsequent to a "change in control" of the Company under the circumstances described below.
 
1.Agreement to Provide Services; Right to Terminate. 

(i)Except as otherwise provided in paragraph (ii) below, the Company or you may terminate your employment at any time, subject to the Company's providing the benefits hereinafter specified in accordance with the terms hereof. 

(ii)In the event a tender offer or exchange offer is made by a Person (as hereinafter defined) for more than 30% of the combined voting power of the Company's outstanding common stock, you agree that you will not leave the employ of the Company (other than as a result of Disability, as that term is hereinafter defined) and will continue to render your employment services until such tender offer or exchange offer has been abandoned or terminated or a change in control of the 
			
	

Company, as defined in Section 3 hereof, has occurred. For purposes of this Agreement, the term "Person" shall mean and include any individual, corporation, partnership, group, association or other "person", as such term is used in Section 14(d) of the Securities Exchange Act of 1934 (the "Exchange Act"), other than the Company, a wholly-owned subsidiary of the Company or any employee benefit plan(s) sponsored by the Company. 

2.Term of Agreement.

This Agreement shall commence on April 25, 2021, and shall continue in effect until December 31, 2021; provided, however, that commencing on January 1, 2022 and each January 1 thereafter, the term of this Agreement shall automatically be extended for one additional year unless at least 90 days prior to such January 1st date, the Company or you shall have given notice that this Agreement shall not be extended; and provided, further, that this Agreement shall continue in effect for a period of thirty-six (36) months beyond the term provided herein if a change in control of the Company, as defined in Section 3 hereof, shall have occurred during such term. Notwithstanding anything in this Section 2 to the contrary, this Agreement shall terminate if you or the Company terminates your employment prior to a change in control of the Company, as defined in Section 3 hereof. 

3.Change in control.

For purposes of this Agreement, a "change in control" of the Company shall mean a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company, as more fully described in attached Exhibit A, which shall be interpreted in accordance with Code §409A(a)(2)(A)(v) and regulations and other guidance thereunder.  Notwithstanding anything in the foregoing to the contrary, no change in control shall be deemed to have occurred for purposes of this Agreement by virtue of any transaction which results in you, or a group of Persons which includes you acquiring, directly or indirectly, 30% or more of the combined voting power of the Company's Voting Securities. 

4.Termination Following change in control.
 
If any of the events described in Section 3 hereof constituting a change in control of the Company shall have occurred, you shall be entitled to the benefits provided in paragraphs (iii) and (iv) of Section 5 hereof upon the termination of your employment within thirty-six (36) months after such event, unless such termination is (a) because of your death, (b) by the Company for Cause or Disability (c) by you other than for Good Reason (as all capitalized terms are hereinafter defined) or unless (d) such termination does not constitute a “Separation from Service” as described in attached Exhibit B.
 
(i)Disability. Termination by the Company of your employment based on "Disability" shall mean termination due to the fact that you (i) are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering Employees of the Company, provided that this definition shall be interpreted in accordance with Code §409A(a)(2)(A)(v) and regulations and other guidance thereunder.  Notwithstanding (i) and (ii), you shall be deemed to have a Disability when determined to be totally disabled by the Social Security Administration. 
			
	

(ii)Cause. Termination by the Company of your employment for "Cause" shall mean termination upon (a) the willful and continued failure by you to perform substantially your duties with the Company (other than any such failure resulting from your incapacity due to physical or mental illness) after a demand for substantial performance is delivered to you by the duly authorized representative of the Compensation Committee of the Board which specifically identifies the manner in which such executive believes that you have not substantially performed your duties, or (b) the willful engaging by you in illegal conduct which is materially and demonstrably injurious to the Company. For purposes of this paragraph (ii), no act, or failure to act, on your part shall be considered "willful" unless done, or omitted to be done, by you in bad faith and without reasonable belief that your action or omission was in, or not opposed to, the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by you in good faith and in the best interests of the corporation. Notwithstanding the foregoing, you shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to you a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the Board called and held for the purpose (after reasonable notice to you and an opportunity for you, together with your counsel, to be heard before the Board), finding that in the good faith opinion of the Board you were guilty of the conduct set forth above in (a) or (b) of this paragraph (ii) and specifying the particulars thereof in detail.

(iii)Good Reason. Termination by you of your employment for "Good Reason" shall mean termination based on: 

(A)an adverse change in your status or position(s) as a corporate officer of the Company as in effect immediately prior to the change in control, including, without limitation, any adverse change in your status or position as a result of a material diminution in your duties or responsibilities (other than, if applicable, any such change directly attributable to the fact that the Company is no longer publicly-owned) or the assignment to you of any duties or responsibilities which, in your reasonable judgment, are inconsistent with such status or position(s), or any removal of you from or any failure to reappoint or reelect you to such position(s) (except in connection with the termination of your employment for Cause or Disability or as a result of your death or by you other than for Good Reason);
 
(B)a reduction by the Company in your compensation as in effect immediately prior to the change in control; 

(C)the failure by the Company to continue in effect any Plan (as hereinafter defined) in which you are participating at the time of the change in control of the Company (or Plans providing you with at least substantially similar benefits) other than as a result of the normal expiration of any such Plan in accordance with its terms as in effect at the time of the change in control, or the taking of any action, or the failure to act, by the Company which would adversely affect your continued participation in any of such Plans on at least as favorable a basis to you as is the case on the date of the change in control or which would materially reduce your benefits in the future under any of such Plans or deprive you of any material benefit enjoyed by you at the time of the change in control;
 
			
	

(D)the failure by the Company to provide and credit you with the number of paid vacation days to which you are then entitled in accordance with the Company's normal vacation policy as in effect immediately prior to the change in control;
 
(E)the Company's requiring you to be based anywhere other than where your office is located immediately prior to the change in control except for required travel on the Company's business to an extent substantially consistent with the business travel obligations which you undertook on behalf of the Company prior to the change in control; 

(F)the failure by the Company to obtain from any Successor (as hereinafter defined) the assent to this Agreement contemplated by Section 6 hereof; 

(G)any purported termination by the Company of your employment which is not effected pursuant to a Notice of Termination satisfying the requirements of paragraph (iv) below (and, if applicable, paragraph (ii) above); and for purposes of this Agreement, no such purported termination shall be effective or
 
(H)any refusal by the Company to continue to allow you to attend to matters or engage in activities not directly related to the business of the Company which, prior to the change in control, you were permitted by the Board to attend to or engage in, including without limiting the foregoing, serving on the Boards of Directors of other companies or entities. 

For purposes of this Agreement, "Plan" shall mean any compensation plan such as an incentive, stock option or restricted stock plan or any employee benefit plan such as a savings, pension, profit sharing, medical, disability, accident, life insurance plan or a relocation plan or policy or any other plan, program or policy of the Company intended to benefit employees. 

(iv)Notice of Termination. Any purported termination by the Company or by you following a change in control shall be communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement, a "Notice of Termination" shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon. 

(v)Date of Termination. "Date of Termination" following a change in control shall mean (a) if your employment is to be terminated for Disability, thirty (30) days after Notice of Termination is given (provided that you shall not have returned to the performance of your duties on a full-time basis during such thirty (30) day period), (b) if your employment is to be terminated by the Company for Cause or by you pursuant to Sections 4(iii)(F) and 6 hereof or for any other Good Reason, the date specified in the Notice of Termination, or (c) if your employment is to be terminated by the Company for any reason other than Cause, the date specified in the Notice of Termination, which is no event shall be a date earlier than ninety (90) days after the date on which a Notice of Termination is given, unless an earlier date has been expressly agreed to by you in writing either in advance of, or after, receiving such Notice of Termination. In the case of termination by the Company of your employment for Cause, if you have not previously expressly agreed in writing to the termination, then within thirty (30) days after receipt by you of the Notice of Termination with respect thereto, you may notify the Company that a dispute exists concerning the termination, in which event the Date of Termination shall be the date set either by mutual written agreement of the parties or by the arbitrators in a proceeding as provided in Section 15 hereof. During the pendency of any such dispute, the Company will continue to pay you your full 
			
	

compensation in effect just prior to the time the Notice of Termination is given and until the dispute is resolved in accordance with Section 15. 

5.Compensation Upon Termination or During Disability; Other Agreements. 

During any period following a change in control that you fail to perform your duties as a result of incapacity due to physical or mental illness, you shall continue to receive your salary at the rate then in effect and any benefits or awards under any Plans shall continue to accrue during such period, to the extent not inconsistent with such Plans, until your employment is terminated pursuant to and in accordance with paragraphs 4(i) and 4(v) hereof.  Thereafter, your benefits shall be determined in accordance with the Plans then in effect. 

(i)If your employment shall be terminated for Cause following a change in control of the Company, the Company shall pay you your salary through the Date of Termination at the rate in effect just prior to the time a Notice of Termination is given plus any benefits or awards (including both the cash and stock components) which pursuant to the terms of any Plans have been earned or become payable, but which have not yet been paid to you. Thereupon the Company shall have no further obligations to you under this Agreement. 

(ii)Subject to Section 8 hereof, if, within thirty-six (36) months after a change in control of the Company shall have occurred as defined in Section 3 above, your employment by the Company shall be terminated (a) by the Company other than for Cause, Disability, or death or (b) by you for Good Reason, then, by no later than the fifth day following the Date of Termination (except as otherwise provided), you shall be entitled, without regard to any contrary provision of any Plan, to the benefits provided below: 

(A)the Company shall pay your salary through the Date of Termination at the rate in effect just prior to the time a Notice of Termination is given plus any benefits or awards (including both the cash and stock components) which pursuant to the terms of any Plans have been earned or become payable, but which have not yet been paid by you; and

(B)as severance pay and in lieu of any further salary for periods subsequent to the Date of Termination, the Company shall pay to you an amount in cash equal to three (3) times the sum of (i) your annualized salary at the rate in effect at the Date of Termination and (ii) an amount equal to the average bonus paid you in the previous three (3) years.
 
(iii)Following a change in control of the Company, unless you are terminated for Cause, Disability, or death or you terminate your employment other than for Good Reason, the Company shall maintain in full force and effect, for the continued benefit of you and your dependents for a period terminating on the earliest of (a) thirty-six (36) months after the Date of Termination, (b) the commencement date of equivalent benefits from a new employer or (c) your normal retirement date under the terms of the La-Z-Boy Incorporated Retirement Contribution and Profit Sharing Plan (or any successor or substitute plan or plans of the Company put into effect prior to a change in control), all insured and self-insured employee welfare benefits plans in which you were entitled to participate immediately prior to the Date of Termination, provided that your continued participation is possible under the general terms and provisions of such Plans (and any applicable funding media) and you continue to pay an amount equal to your regular contribution under such Plans for such participation.  If 
			
	

permitted by applicable law, right to continuation coverage pursuant to COBRA will run concurrently with such continued participation provided by the Company.  If the terms of the Company’s medical and dental plans do not permit your continued participation after the termination of your employment and you elect to continue medical or dental coverage as provided for by COBRA, the Company will, for the lesser of 36 months or the period during which you maintain such COBRA continuation coverage, pay the difference between the cost of your COBRA premiums for medical and dental insurance and the normal employee contribution for such coverage.  Such payments will be made by the Company in accordance with its normal schedule for premium payments in accordance with the applicable plan.  (You may thereafter have the right under COBRA to continue such insurance at your expense for the remaining months of your eligibility.)  You will be responsible for any tax on such benefits or payments made by the Company. If, at the end of thirty-six (36) months after the Termination Date, you have not reached your normal retirement date and you have not previously received or are not then receiving equivalent benefits from a new employer, the Company shall arrange to enable you to convert your and your dependents' coverage under such Plans to individual policies or programs upon the same terms as employees of the Company may apply for such conversions. 

(iv)Except as specifically provided herein, the amount of any payment provided for in this Section 5 shall not be reduced, offset or subject to recovery by the Company by reason of any compensation earned by you as the result of employment by another employer after the Date of Termination, or otherwise. 

Certain Section 409A Rules.  

(a) Specified Employee. Notwithstanding any provision of this Agreement to the contrary, if you are a Specified Employee, any payment or benefit under this Agreement that constitutes deferred compensation subject to Section 409A of the Code and for which the payment event is a Separation from Service shall not be made or provided before the date that is six months after the date of your Separation from Service. Any payment or benefit that is delayed pursuant to these Rules shall be made or provided on the first business day of the seventh month following the month in which the your Separation from Service occurs. With respect to any cash payment delayed pursuant to these Rules, the first payment shall include interest, at the Wall Street Journal Prime Rate published in the Wall Street Journal on the Separation from Service date of (or the previous business day if such date is not a business day), for the period from the date the payment would have been made but for these Rules through the date payment is made. These Rules shall apply to the extent required to avoid your incurrence of any additional tax or interest under Section 409A of the Code. 

(b) Reimbursement and In-Kind Benefits. Notwithstanding any provision of this Agreement to the contrary, with respect to in-kind benefits provided or expenses eligible for reimbursement under this Agreement which are subject to Section 409A of the Code, (i) the benefits provided or the amount of expenses eligible for reimbursement during any calendar year shall not affect the benefits provided or expenses eligible for reimbursement in any other calendar year, except as otherwise provided in Treas. Reg. §1.409A-3(i)(1)(iv)(B), and (ii) the reimbursement of an eligible expense shall be made as soon as practicable after your request for such reimbursement (subject to (a), above), but not later than the December 31 following the calendar year in which the expense was incurred. 

			
	

(c) “Specified Employee” shall mean a specified employee as defined in Section 409A of the Code as of the date of a Separation from Service.

(d)  Interpretation and Construction. This Agreement is intended to comply with Section 409A of the Code and shall be administered, interpreted and construed in accordance therewith to avoid the imposition of additional tax under Section 409A of the Code. 
 
6.Successors; Binding Agreement. 

(i)Upon your written request, the Company will seek to have any Successor (as hereinafter defined), by agreement in form and substance satisfactory to you, assent to the fulfillment by the Company of its obligations under this Agreement. Failure of the Company to obtain such assent at least three (3) business days prior to the time a Person becomes a Successor (or where the Company does not have at least three (3) business days advance notice that a Person may become a Successor, within one (1) business day after having notice that such Person may become or has become a Successor) shall constitute Good Reason for termination by you of your employment and, if a change in control of the Company has occurred, shall entitle you immediately to the applicable benefits provided in Section 5 hereof upon delivery by you of a Notice of Termination. For purposes of this Agreement, "Successor" shall mean any Person that succeeds to, or has the practical ability to control (either immediately or with the passage of time), the Company's business directly, by merger or consolidation, or indirectly, by purchase of the Company's Voting Securities, all or substantially all of its assets or otherwise.
 
(ii)This Agreement shall inure to the benefit of and be enforceable by your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If you should die while any amount would still be payable to you hereunder if you had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to your devisee, legatee or other designee or, if there be no such designee, to your estate.
 
(iii)For purposes of this Agreement, the "Company" shall include any corporation or other entity which is the surviving or continuing entity in respect of any merger, consolidation or form of business combination in which the Company ceases to exist.
 
7.Fees and Expenses; Mitigation.
 
(i)The Company shall pay all reasonable legal fees and related expenses incurred by you in connection with this Agreement following a change in control of the Company, including, without limitation, (a) all such fees and expenses, if any, incurred in contesting or disputing any such termination or incurred by you in seeking advice with respect to the matters set forth in Section 8 hereof or (b) your seeking to obtain or enforce any right or benefit provided by this Agreement. 

(ii)You shall not be required to mitigate the amount of any payment the Company becomes obligated to make to you in connection with this Agreement, by seeking other employment or otherwise. 

8.Taxes. 

			
	

(i)All payments to be made to you under this Agreement will be subject to required withholding of federal, state and local income and employment taxes.
 
(ii)Notwithstanding any other provision of this Agreement, if any of the payments or benefits received or to be received by you pursuant to this Agreement, when taken together with payments and benefits provided to you under any other plans, contracts, or arrangements with the Company or its subsidiaries (the “Total Payments”), will be subject to any excise tax imposed under Code Section 4999 (together with any interest or penalties, the “Excise Tax”), then such Total Payments shall be reduced to the extent necessary so that no portion thereof will be subject to the Excise Tax; provided, however, that if you would receive in the aggregate greater value (as determined under Code Section 280G and the regulations thereunder) on an after tax basis if the Total Payments were not subject to such reduction, then no such reduction shall be made.  In effectuating the reduction described above, if applicable, the Company will first reduce or eliminate the payments and benefits provided under this Agreement.  All calculations required to be made under this Section will be made by the Company’s independent public accountants, subject to the right of your representative to review the same.  If the Company’s independent public accountants refuse to make the required determinations, then such determinations will be made by an independent accounting firm with national reputation reasonably selected by the Company.  As a result of the uncertainty in the application of the Internal Revenue Code, it is possible that the Company will in good faith make payments to you that it should not make.  In the event of such overpayment, the Company shall have no further liability or obligation to you for any resulting excise taxes, interest, or penalty that you are required to pay.

9.Survival. 

The respective obligations of, and benefits afforded to, the Company and you as provided in Sections 5, 6(ii), 7, 8, 13, and 15 of this Agreement shall survive termination of this Agreement. 

10.Notice. 

For the purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when sent by electronic mail or when delivered or mailed by United States registered mail, return receipt requested, postage prepaid and addressed, in the case of the Company, to the address set forth on the first page of this Agreement or, in the case of the undersigned employee, to the most current address he has provided to the Company on its records, provided that all notices to the Company shall be directed to the attention of the duly authorized representative of the Compensation Committee of the Board, with a copy to the Secretary of the Company, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.
 
11.Miscellaneous. 

No provision of this Agreement may be modified, waived or discharged unless such modification, waiver or discharge is agreed to in a writing signed by you and the duly authorized representative of the Compensation Committee of the Board. No waiver by either party hereto at any time of any breach by the other party hereto of, or of compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not 
			
	

expressly set forth in this Agreement.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Michigan. 

12.Full Settlement. 

The Company's obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any circumstances, including without limitation any setoff, counterclaim, recoupment, defense or other right which the Company may have against you. 

13.Confidential Information. 

You agree that you will hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company or any of its affiliated companies, and their respective businesses, which shall have been obtained by you during your employment by the Company or any of its affiliated companies and which shall not be public knowledge. After termination of your employment with the Company you shall not, without the prior written consent of the Company, communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated by it. Provided, however, that nothing in this Agreement shall prohibit you from reporting possible violations of law or regulation to the Securities and Exchange Commission or any other governmental agency or entity.  In no event shall an asserted violation of the provisions of this Section 13 constitute a basis for deferring or withholding any amounts otherwise payable to you under this Agreement.
 
14.Validity. 

The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

15.Arbitration. 

You and the Company agree that final and binding arbitration is and will be the sole and exclusive remedy and forum for resolving any dispute or claim between you and the Company arising out of this Agreement, including:
 
(i)The Company's termination of your employment; and/or

(ii)Any dispute or claim concerning or arising out of whether your termination was for "Cause" or for "Good Reason." 

You have a right to appeal your dispute to arbitration. The arbitrator will be selected by mutual agreement. If the arbitrator is not selected by mutual agreement, then the arbitrator will be selected from a panel of experienced labor and employment arbitrators supplied by the American Arbitration Association (AAA). The parties will alternatively strike names from the AAA panel until one name (the Arbitrator) remains. The arbitrator will decide the time and place of a hearing, which will be conducted according to AAA Rules. At the arbitration hearing, you will have the opportunity to rebut the evidence presented by the Company and you may present witnesses and evidence to support your case. The arbitrator will decide, in writing, the resolution of the dispute. 

			
	

The Company will be responsible for its and your own costs including attorney fees. If you decide to be represented by an attorney, you must notify the Company at least one month before the arbitration hearing. If you do not choose to be represented by an attorney, then the Company will not be represented by an attorney.
 
This arbitration procedure and the decision of the arbitrator is your exclusive remedy in case of discharge, and is final and binding on both the Company and you and is fully enforceable in court. If this letter correctly sets forth our agreement on the subject matter hereof, kindly sign and return to the Company the enclosed copy of this letter which will then constitute our agreement on this subject. 

This letter agreement replaces the letter agreement between you and La-Z-Boy Incorporated effective June 21, 2018 (“Prior Agreement”).  By signing below, you acknowledge that the Prior Agreement is terminated as of the date and time this Agreement takes effect.

[Signatures on next page]

			
	

Sincerely,

LA-Z-BOY INCORPORATED  

/s/ Uzma Ahmad
______________________________
By:  Uzma Ahmad
Vice President, Deputy General Counsel and Corporate Secretary
La-Z-Boy Incorporated

Effective April 25, 2021.

/s/ Melinda D. Whittington
 
______________________________                    
Melinda D. Whittington
President and Chief Executive Officer

			
	

Exhibit A
Change in control

“Change in control” means any change required to be reported in Item 6(e) of Schedule 14A of Regulation 14A issued under the Securities Exchange Act of 1934 (the “Exchange Act”) that qualifies as a change in control event pursuant to Code §409A.  A “change in control event” pursuant to Code §409A includes the occurrence of a change in the ownership of the Company (as defined in Reg. §1.409A-3 (i)(5)(v)), a change in effective control of the Company (as defined in Reg. §1.409A-3(i)(5)(vi)), or a change in the ownership of a substantial portion of the assets of the Company (as defined in Reg. §1.409A-3(i)(5)(vii), and, in particular, any one or more of the following events:

a.    A change in ownership of the Company in which any one person, or more than one person acting as a group acquires beneficial ownership of stock of the Company that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of the Company; provided, however, that for purposes of this subsection (a), the following acquisitions shall not constitute a Change in Control: (i) any acquisition by the Company, or (ii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or by any corporation controlled by the Company.

b.    A change in the effective control of the Company, pursuant to which either:

(i)    Any one person, or more than one person acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) beneficial ownership of stock of the Company possessing 30 percent or more of the total voting power of the stock of the Company.

(ii)    A majority of members of the Company’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s board of directors before the date of the appointment or election.

c.    A change in the ownership of a substantial portion of the Company’s assets pursuant to which any one person, or more than one person acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions.  As used herein, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.  However, there is no change in control event under this paragraph when there is a transfer to a related person as described in Reg. §1.409A-3(i)(5)(vii)(B)

However, a change in control shall not include a merger of the Company with another entity, a consolidation involving the Company, or the sale of all or substantially all of the assets or equity interests of the Company to another entity if, in any such case, (a) the holders of equity securities of the Company immediately prior to such event beneficially own immediately after such event equity securities of the resulting entity entitled to more than fifty percent of the votes then eligible to be cast in the election of directors (or comparable governing body) of the resulting entity in substantially the same proportions that they owned the equity securities of the Company immediately prior to such event or (b) the persons who 
			
	

were members of the Board immediately prior to such event constitute at least a majority of the board of directors of the resulting entity immediately after such event.

For purposes of this definition:

(A)    “Beneficial owner” (or “beneficial ownership”) includes ownership by attribution as provided in Reg. §1.409A.

(B)    Where applicable, “person” means a person as defined in Section 3(a)(9) of Securities Exchange Act of 1934, as amended (the “Exchange Act”);

(C)    “Acting as a group” means so acting within the meaning of the applicable portion of Reg. §1.409A-3(i)(5).  Persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.  If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders only with respect to the ownership in that corporation before the transaction giving rise to the change and not with respect to the ownership interest in the other corporation.  Where applicable, “group” means a group as described in Rule 13d-5 promulgated under the Exchange Act or any successor regulation.

			
	

Exhibit B
Separation From Service

A Separation From Service occurs on the date upon which a Participant is no longer an Employee of the Company, as determined in accordance with Code §409A and Treasury Regulations promulgated thereunder.

For purposes of this Plan, an Employee separates from service with the Company if the Employee dies, retires or otherwise has a termination of employment with the Company.  However, the employment relationship is treated as continuing intact while the Employee is on military leave, sick leave, or other bona fide leave of absence (such as temporary employment by the government) if the period of such leave does not exceed six months, or if longer, so long as the Employee’s right to reemployment with the Company is provided either by statute or by contract. If the period of leave exceeds six months and the Employee’s right to reemployment is not provided either by statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such six-month period. 

Whether a termination of employment has occurred is determined based on the facts and circumstances. Where an Employee either actually or purportedly continues in the capacity as an Employee, such as through the execution of an employment agreement under which the Employee agrees to be available to perform services if requested, but the facts and circumstances indicate that neither the Company nor the Employee intended for the Employee to provide more than insignificant services to the Company, an Employee will be treated as having a Separation From Service.  For purposes of the preceding sentence, the Company and Employee will not be treated as having intended for the Employee to provide insignificant services where the Employee continues to provide services at an annual rate that is at least equal to 20 percent of the services rendered, on average, during the immediately preceding three full calendar years of employment (or, if employed less than three years, such lesser period) and the annual remuneration for such services is at least equal to 20 percent of the average annual remuneration earned during the final three full calendar years of employment (or, if less, such lesser period). Where an Employee continues to provide services to the Company in a capacity other than as an Employee, a Separation From Service will not be deemed to have occurred if such former Employee is providing services at an annual rate that is 50 percent or more of the services rendered, on average, during the immediately preceding three full calendar years of employment (or if employed less than three years, such lesser period) and the annual remuneration for such services is 50 percent or more of the annual remuneration earned during the final three full calendar years of employment (or if less, such lesser period). For purposes of this paragraph, the annual rate of providing services is determined based upon the measurement used to determine the Company’s base compensation (for example, amounts of time required to earn salary, hourly wages, or payments for specific projects).

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