Benzinga | Jun 15, 2021 11:56AM EDT

PetMed Express Says On June 11 Co's President And CEO Entered Into A CEO Separation Agreement

On June 11, 2021, PetMed Express, Inc. (the "Company") and Menderes Akdag, the Company's President and Chief Executive Officer, entered into a CEO Separation Agreement and General Release setting forth certain matters relating to the previously announced expiration of Mr. Akdag's employment with the Company (the "Separation Agreement"). The Separation Agreement provides that Mr. Akdag's employment with the Company, and service as an officer and director of the Company, will terminate as of July 30, 2021. The Separation Agreement also documents Mr. Akdag's agreement that, during his remaining period of employment through July 30, 2021, he will continue to provide his fulltime and attention to the business affairs of the Company and cooperate with the Company's Board of Directors on the transition to a new chief executive officer. The Separation Agreement provides that Mr. Akdag will be paid two lump-sum severance payments of $325,000 each, with the first such payment to be paid on August 10, 2021, and the second to be paid on December 31, 2021, subject to his compliance with the terms and conditions of his existing employment agreement which expires on July 30, 2021, and the Separation Agreement.



In exchange for the Company's agreement to make the severance payments, Mr. Akdag granted the Company a full release of any and all claims that he may have against the Company and its affiliates and related parties. In addition, as a part of the Separation Agreement, the Company confirmed that the 37,800 restricted shares held by Mr. Akdag will vest on July 31, 2021, and that the Company would cover the tax withholding obligations in connection with such vesting as set forth in Mr. Akdag's existing employment agreement. Under the Separation Agreement, Mr. Akdag agreed that he would continue to comply with his existing confidentiality, non-solicitation, and non-compete obligations, and he further agreed that until July 31, 2022, he would comply with certain "standstill" covenants relating to the Company.



The foregoing does not purport to be a complete description of the Separation Agreement and is qualified in its entirety by reference to the full text of such agreement, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.