<SEC-DOCUMENT>0001437749-19-014172.txt : 20190718
<SEC-HEADER>0001437749-19-014172.hdr.sgml : 20190718
<ACCEPTANCE-DATETIME>20190717181648
ACCESSION NUMBER:		0001437749-19-014172
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20190718
DATE AS OF CHANGE:		20190717
EFFECTIVENESS DATE:		20190718

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PETMED EXPRESS INC
		CENTRAL INDEX KEY:			0001040130
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-DRUG STORES AND PROPRIETARY STORES [5912]
		IRS NUMBER:				650680967
		STATE OF INCORPORATION:			FL
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-28827
		FILM NUMBER:		19960034

	BUSINESS ADDRESS:	
		STREET 1:		420 SOUTH CONGRESS AVENUE
		CITY:			DELRAY BEACH
		STATE:			FL
		ZIP:			33445
		BUSINESS PHONE:		(561) 426-4444

	MAIL ADDRESS:	
		STREET 1:		420 SOUTH CONGRESS AVENUE
		CITY:			DELRAY BEACH
		STATE:			FL
		ZIP:			33445
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEFA14A
<SEQUENCE>1
<FILENAME>pets20190717_defa14a.htm
<DESCRIPTION>FORM DEFA14A
<TEXT>
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	<title>pets20190710_defr14a.htm</title>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">UNITED STATES</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">SECURITIES AND EXCHANGE COMMISSION</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">Washington, D.C. 20549</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">SCHEDULE 14A INFORMATION</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">Proxy Statement Pursuant to Section 14(a) of the</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">Securities Exchange Act of 1934</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">(Amendment No.__)</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">&nbsp;</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Filed by the Registrant &#9746;</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Filed by a Party other than the Registrant &#9744;</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&nbsp;</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Check the appropriate box:</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&#9744;&nbsp;Preliminary Proxy Statement</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&#9744; Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&#9744;&nbsp;Definitive Proxy Statement</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&#9746;&nbsp;Definitive Additional Materials</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&#9744; Soliciting Material Pursuant to &#167;240.14a-12</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><b>&nbsp;</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;"><b>PETMED EXPRESS, INC.</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">(Name of Registrant as Specified In Its Charter)</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;">(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Payment of Filing Fee (Check the appropriate box):</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&#9746; No fee required.</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&#9744; Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</p>

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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">(1)</p>
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			<td style="vertical-align:top;width:93.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Title of each class of securities to which transaction applies:</p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">(2)</p>
			</td>
			<td style="vertical-align:top;width:93.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Aggregate number of securities to which transaction applies:</p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>
			</td>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">(3)</p>
			</td>
			<td style="vertical-align:top;width:93.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):</p>
			</td>
		</tr>

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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>
			</td>
			<td style="vertical-align:top;width:3.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">(4)</p>
			</td>
			<td style="vertical-align:top;width:93.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Proposed maximum aggregate value of transaction:</p>
			</td>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>
			</td>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">(5)</p>
			</td>
			<td style="vertical-align:top;width:93.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total fee paid:</p>
			</td>
		</tr>

</table>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:43.2pt;margin-right:7.2pt;margin-top:0pt;text-align:left;">&nbsp;</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&#9744; Fee paid previously with preliminary materials.</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&nbsp;</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&#9744; Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously.</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&nbsp;</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing:</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</p>

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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">(1)</p>
			</td>
			<td style="vertical-align:top;width:93.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Amount previously paid:</p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>
			</td>
			<td style="vertical-align:top;width:3.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">(2)</p>
			</td>
			<td style="vertical-align:top;width:93.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Form, Schedule or Registration Statement No.:</p>
			</td>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>
			</td>
			<td style="vertical-align:top;width:3.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">(3)</p>
			</td>
			<td style="vertical-align:top;width:93.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Filing party:</p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>
			</td>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">(4)</p>
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			<td style="vertical-align:top;width:93.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Date Filed:</p>
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</table>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</p>

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<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left">&nbsp;</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>PETMED EXPRESS, INC.</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>SUPPLEMENTAL MATERIAL TO OUR PROXY STATEMENT</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>FOR OUR ANNUAL MEETNG TO BE HELD ON JULY 26, 2019</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">This letter dated July 17, 2019 supplements the Proxy Statement of PetMed Express, Inc. (&#8220;we&#8221;, &#8220;our&#8221; or the &#8220;Company&#8221;) dated June 14, 2019 (the &#8220;Proxy Statement&#8221;) with the following information. The letter included below will be sent to certain of our Stockholders beginning on July 17, 2019:</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Letter to Our Stockholders</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">July 17, 2019</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Dear Stockholders,</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Board of Directors of PetMed Express, Inc. is issuing supplemental information to our Proxy Statement filed on June 14, 2019, in order to provide additional information concerning our Stockholder outreach efforts. In addition, the Board is clarifying certain aspects of our executive compensation program, CEO employment agreement, stock ownership guidelines, clawback policy, and Board composition and governance processes.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i>Stockholder</i><i> Outreach</i></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company&#8217;s 2018 Say on Pay vote at the July 2018 annual meeting received 60.2% support from our Stockholders. Management and our investor relations team then held many meetings and discussions with Stockholders between the 2018 annual meeting and the end of 2018. This effort supplemented the ongoing communications between our management and Stockholders, through various engagement channels including direct meetings, analyst conferences and road shows. Then in response to proxy advisor recommendations and the Say on Pay vote last year, members of the Board again reached out by email and phone calls to our top 20 institutional investors representing 58% of shares outstanding to request meetings to discuss any issues or concerns they may have with our executive compensation program. Stockholders representing nearly 26% of our outstanding shares agreed to engage with us.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the engagement, the Board&#8217;s Independent Chair and Chair of the Compensation Committee, Mr. Schweitzer, and the Board&#8217;s Chair of the Corporate Governance and Nominating Committee, Ms. Campbell, along with the Company&#8217;s Chief Financial Officer, Mr. Rosenbloom, met by phone with the Stockholders representing nearly 26% of our outstanding shares. We provided an open forum to each Stockholder to discuss and comment on any aspects of the Company&#8217;s executive compensation program. The Company after this engagement with its Stockholders, agreed to keep in contact with them, as well as with the other Stockholders who chose not to engage with the Company, in order to continue to receive whatever feedback they may have on the Company&#8217;s executive compensation program and our corporate governance processes.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The specific feedback from investors, as well as the changes the Board and Compensation Committee made in response to Stockholders, are set forth below.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

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			<td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 14.7%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>Topic</b></p>
			</td>
			<td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 32.3%; border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>What We Heard From </b><b>Stockholders</b></p>
			</td>
			<td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 53%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>Changes We Made</b></p>
			</td>
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			<td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 14.7%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Compensation</p>
			</td>
			<td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 32.3%; border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Stockholders requested that a greater portion of CEO compensation be performance-based</p>
			</td>
			<td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 53%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">As discussed below and in our Proxy Statement filed on June 14, 2019, the Compensation Committee determined to make several changes and enhancements to the CEO&#8217;s compensation structure to include pre-determined performance metrics for cash and equity compensation beginning in fiscal year 2020.</p>
			</td>
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			<td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 14.7%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Compensation</p>
			</td>
			<td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 32.3%; border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Stockholders requested that we eliminate the &#8220;modified single trigger&#8221; from the employment agreement of the CEO, Menderes Akdag</p>
			</td>
			<td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 53%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">On July 12, 2019, the Board approved, and Mr. Akdag readily agreed to, an amendment to his employment agreement to include a definition of &#8220;Good Reason&#8221; to any benefits received in connection with voluntary termination following a Change in Control of the Company.</p>
			</td>
		</tr>
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			<td style="vertical-align: top; width: 14.7%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Compensation</p>
			</td>
			<td style="vertical-align: top; width: 32.3%; border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Stockholders requested that we disclose our rationale for paying the CEO&#8217;s withholding tax associated with the restricted shares</p>
			</td>
			<td style="vertical-align: top; width: 53%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Compensation Committee has provided discussion in this supplemental filing about the Board&#8217;s rationale for the payment of withholding taxes associated with restricted shares. We also provided clarification that this is a universal company practice.</p>
			</td>
		</tr>

</table>

<p style="margin: 0pt;">&nbsp;</p>

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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Compensation</p>
			</td>
			<td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 32.3%; border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Stockholders requested that equity granted to the CEO vest over a minimum period of three years</p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">In connection with a renewal of the CEO&#8217;s current one-year agreement in 2020, the Compensation Committee will review future equity awards that may require an as-yet-undetermined longer vesting period.</p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Board</p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Stockholders requested additional clarification about Board diversity</p>
			</td>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Board has provided additional clarification at the end of&nbsp;this supplemental filing about Board diversity, Board composition and governance processes.</p>
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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i>Enhancements to Our</i><i> Executive</i><i> Compensation Program</i></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">In 2018, our Compensation Committee undertook a fresh review of our executive compensation program, with particular emphasis on our short-term and long-term incentive plans. With input from an independent compensation consultant and management, the Compensation Committee conducted a comprehensive review of our programs, including performance measurements.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Following this review, the Compensation Committee determined to make several changes and enhancements to the CEO&#8217;s compensation structure. Specifically, the CEO&#8217;s cash and equity-based compensation for fiscal year 2020 will be based on the following fiscal 2019 goals, on a percentage basis: net revenue (35 percent), operating profit (35 percent), employee engagement survey (15 percent), and the net promoter score (15 percent). The evaluation method and rating scale to measure performance to determine Mr. Akdag&#8217;s future compensation is described more fully in the Company&#8217;s Proxy Statement filed on June 14, 2019. The CEO&#8217;s compensation structure is very similar to the compensation structure of the Company&#8217;s management committee and other members of management. The Company&#8217;s management is graded on corporate goals which are aligned with the annual forecast, which is approved by the Company&#8217;s Board of Directors. This performance-based compensation process is a universal company practice.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i>Changes to </i><i>Mr. Akdag&#8217;s</i><i> Employment Agreement</i></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">As discussed in the chart above, in response to Stockholder concerns, on July 12, 2019, the Board approved, and Mr. Akdag readily agreed to, an amendment to his employment agreement to include a definition of &#8220;Good Reason&#8221; to any benefits received in connection with voluntary termination following a change in control of the Company. In addition, the Board had previously approved an amendment to reduce the term of the employment agreement from three years to one year, with the aforementioned performance-based criteria. Copies of these amendments are appended to Forms 8-K filed on July 12, 2019 and May 13, 2019, respectively.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i>Rationale for Paying the Withholding Tax Associated with Restricted Shares</i></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">In 2006, in connection with the switch from its then-Stock Options Plan to its Restricted Stock Plan, the Board of Directors decided that the Company would pay the withholding tax percentage for the restricted stock compensation awards according to current IRS guidelines for all employees, including named executives. This benefit was not extended to non-employee members of the Board. In coming to this decision, the Board determined that it was in the best interests of the Company and its Stockholders to encourage employee ownership of stock. However, under a Restricted Stock Plan the tax burden is determined at the vesting date, and not on the date of sale as is for Stock Option Plans. This tax burden would encourage most employees to sell their equity shares in order to pay the taxes rather than holding the shares for the long term, and the Board took the payment of withholding tax benefit into account when determining the overall restricted stock issuances. The Board&#8217;s decision at that time to pay for employees&#8217; withholding taxes under the Restricted Stock Plan was a universal company practice.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i>Stock Ownership Guidelines and Clawback Policy</i></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">On March 5, 2019, in order to further encourage ownership and require executives to have a vested interest as owners of the Company, the Board created and approved Corporate Governance Guidelines that include stock ownership guidelines for our named executive officers and the non-employee members of our Board. These Guidelines are intended to align the financial interests of the executives and non-employee directors with our stockholders by requiring them to acquire and maintain a meaningful ownership interest in our common stock at levels sufficient to assure our stockholders of their commitment to long-term value creation.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">According to the Guidelines, our named executive officers and the non-employee members of our Board are required to acquire and hold shares of our common stock with a value at least equal to the following multiple of their annual base salary or cash retainer:&nbsp;</p>

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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">Chief Executive Officer: 5x annual base salary</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">Other named executive officers: 2x annual base salary</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">&#9679;</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">Non-employee members of Board of Directors: 5x annual cash retainer</p>
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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Additional details about our stock ownership guidelines are available on page 15 of our Proxy Statement filed on June 14, 2019.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">In addition, the Guidelines include a clawback policy, which states that the Compensation Committee is authorized to recover performance-based compensation from executive officers in the event of certain financial restatements. Additional details about this policy can be found in our Corporate Governance Guidelines on our website at <u>www.1800petmeds.com</u>.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Compensation Committee refined the executive compensation program consistent with its ongoing efforts to ensure that our programs are optimally designed to reflect Stockholder values, enhance the link between executive pay and company performance, respond to changing market practices and retain effective leaders who have a significant understanding of our business.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">We believe that we have updated our compensation practices in a manner appropriate for a company of our size and stage of growth. We intend to continue engaging with our Stockholders and reviewing our compensation and governance practices in the future.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i>Board </i><i>Composition and Governance Processes</i></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">It is the policy of the Board, as documented in the Corporate Governance Guidelines that one of the stated objectives of the Board is to encompass a range of talent, skill, experience and character sufficient to provide sound and prudent guidance with respect to all of the Company&#8217;s operations and interest. A second stated objective is to reflect the diversity of the Company&#8217;s stockholders, employees, customers and communities.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">With these objectives in mind, the Board nominated Leslie C. G. Campbell to the director slate in July 2018 and she was elected by the shareholders in the annual shareholders meeting. Further to her election to the Board, she joined the audit committee as an Audit Committee Financial Expert (ACFE), she became a member of the Compensation Committee and was elected to chair the Corporate Governance and Nominating Committee. With her election nearly a year ago, the Board acted on its commitment to further diversify the composition of the Board, making the independent directors 20% female, adding another ACFE, bringing in tech industry and supply chain expertise and refreshing the chairmanship of one of the Board&#8217;s three standing committees.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During fiscal year 2019, the Corporate Governance and Nominating Committee took a fresh look at many of the foundational governance practices, and took action to:</p>

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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">update the Company&#8217;s by-laws as proposed in the proxy</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">create and publicly disclose Corporate Governance Guidelines</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">&#9679;</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">update the charters for Audit, Compensation and Corporate Governance and Nominating committees</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">&#9679;</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">enhance the annual corporate strategy review</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">hold a CEO succession planning session</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">&#9679;</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">introduce shareholding guidelines for directors and named executives</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">&#9679;</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">implement a recovery of performance-based compensation (clawback) policy</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">&#9679;</p>
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			<td style="vertical-align:top;">
			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">launch an online Business Ethics training course which has been completed by 100% of employees and board directors</p>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">&#9679;</p>
			</td>
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			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">create a forward looking governance calendar</p>
			</td>
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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">For the current fiscal year 2020, the Corporate Governance and Nominating Committee will undertake the completion of a board or directors skills and attributes matrix to best evaluate the current mix of skills and experiences represented by the board, and to consider those skills and attributes&#8212;including diversity&#8212;which are needed to oversee the Company&#8217;s strategy. This exercise will supplement the annual board and committee self-evaluations and will drive the Board&#8217;s overall planning and any refreshment plans.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Board remains committed to their objectives of creating a board that demonstrates a range of talent, skills, and experience, reflects the diversity of their various stakeholders, and supports the Company&#8217;s strategy. The Board will continue to engage in and enhance the processes that support those objectives.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i>Re-Election of Robert C. Schweitzer to the Board of Directors</i></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">On July 10, 2019, Robert C. Schweitzer, a member of the Board of Directors of the Company, notified the Company of his decision to resign as a member of the Audit Committee of the Board of Directors, effective as of July 10, 2019. Mr. Schweitzer will remain as a member and Chair of the Board of Directors of the Company, as a member and Chair of the Company's Compensation Committee, and as a member of the Company's Corporate Governance and Nominating, and Investment Committees. Mr. Schweitzer is resigning as a member of the Company's Audit Committee because of time constraints relating to his additional responsibilities on the Company's Board of Directors and his other outside professional and business activities, and there are no disagreements between Mr. Schweitzer and the Company on any matter related to the Company's operations, policies or practices. Effective upon Mr. Schweitzer's resignation as a member of the Company's Audit Committee, the size of the Company's Audit Committee was reduced from five to four members.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i>Appointment of Proxy Solicitor</i></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Subsequent to filing the Proxy Statement for our 2019 Annual Meeting of Stockholders to be held on July 26, 2019, we retained Okapi Partners, an independent proxy solicitation firm, to assist in soliciting proxies on our behalf. We have agreed to pay Okapi Partners an initial fee of $15,000, plus costs and expenses, for these services. We bear all proxy solicitation costs. If Stockholders need assistance with casting or changing their vote, they should contact our proxy solicitor, Okapi Partners, toll-free at (877) 274-8654 or via email at <u>info@okapipartners.com</u>.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i>Voting Matters</i></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i>If you have already returned your proxy card or provided voting instructions, you do not need to take any action unless you wish to change your vote.</i> Proxies that have already been submitted, and which are not subsequently revoked or changed as described below, will be voted at the 2019 Annual Meeting as indicated. Detailed information regarding voting procedures can be found in the Proxy Statement. In general, you may revoke your proxy and vote again by (i) delivering a notice of revocation or delivering a later-dated proxy to the Company&#8217;s Corporate Secretary at PetMed Express, Inc. 420 South Congress Avenue, Delray Beach, FL 33445; (ii) submitting another vote over the Internet or by telephone; or (iii) by attending and voting in person during the 2019 Annual Meeting. However, your attendance during the 2019 Annual Meeting will not automatically revoke your proxy unless you specifically so request. A stockholder's last vote is the vote that will be counted. See Questions and Answers about the Proxy Materials and the 2019 Annual Meeting on pages 1 &#8211; 5 of the Proxy Statement.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting to be Held on July 26, 2019</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">This Supplement, Amendment No. 1 to the Proxy Statement, the Proxy Statement and the 2019 Annual Report to Stockholders, which consists of our Annual Report on Form 10-K for the fiscal year ended March 31, 2019, are available at <u>www.viewproxy.com/1800petmeds/2019</u>.</p>

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