Document:

Exhibit 10.1

 

FTD COMPANIES, INC.

2015 MANAGEMENT BONUS PLAN

 

I.                                        PURPOSES OF THE PLAN

 

1.01 The FTD Companies, Inc. (the “Company”) 2015 Management Bonus Plan (the “Plan”) is hereby established under the Incentive Bonus Program of the Company’s stockholder-approved Amended and Restated 2013 Incentive Compensation Plan (the “2013 ICP”) and is intended to promote the interests of the Company by creating an incentive program to (i) attract and retain employees who will strive for excellence and (ii) motivate those individuals to achieve above-average objectives by providing them with rewards for contributions to the financial performance of one or more business segments or business units of the Company.

 

1.02 For purposes of the Plan, the financial performance for the 2015 fiscal year of the Company shall be measured to determine the bonus amounts (if any) payable for such fiscal year to the participants in the Plan.

 

II.                                   ADMINISTRATION OF THE PLAN

 

2.01 The Plan is hereby adopted by the Compensation Committee of the Company’s Board of Directors (the “Committee”) as a special cash bonus program under the Incentive Bonus Program of the 2013 ICP and shall be administered by the Committee pursuant to the administrative authority provided the Committee under the 2013 ICP and the Incentive Bonus Program thereunder.

 

2.02 The bonuses that may be earned under the Plan shall be tied to the financial performance of the Company for the Company’s 2015 fiscal year ending December 31, 2015 (the “2015 Fiscal Year”). The Committee shall establish the applicable performance goals for the Company in writing not later than ninety (90) days after the commencement of the 2015 Fiscal Year, provided that the outcome of the applicable goals must be substantially uncertain at the time of their establishment (the “Performance Goals Schedule”). The Performance Goals Schedule shall be attached to the minutes of the meeting or the consent resolutions at or by which such performance goals were established.

 

2.03 The interpretation and construction of the Plan and the adoption of rules and regulations for administering the Plan shall be made by the Committee in its sole discretion. Decisions of the Committee shall be final and binding on all parties who have an interest in the Plan.

 

III.                              DETERMINATION OF PARTICIPANTS

 

3.01 The following individuals (each, a “Participant”) will participate in the Plan on the following basis:

 

1

 

(i) The bonus potential for Robert S. Apatoff shall be allocated one hundred percent (100%) to the consolidated financial results of the Company.

 

(ii) The bonus potential for the individuals set forth on Schedule I attached hereto shall be allocated to the financial results of the Company and to achievement of such person’s approved divisional or departmental goals for the 2015 Fiscal Year as set forth on such Schedule I next to the name of each person.  The Company’s CEO shall approve all divisional or departmental goals.

 

3.02 Except as provided below and except as otherwise provided in any employment agreement or severance agreement between the Company (or a subsidiary thereof) and a Participant, if a Participant does not continue in the employ of the Company or one of its subsidiaries through the last business day of the 2015 Fiscal Year (the “Bonus Qualification Date”), then such Participant will not be eligible to receive a bonus under the Plan. However, the following special partial payment provisions shall be in effect:

 

(i) Should the Participant’s employment terminate prior to the Bonus Qualification Date as a result of death or permanent disability (as defined below), then that individual or such individual’s estate shall be entitled to a pro-rated portion of the bonus such individual would have earned, based on the Company’s actual performance for the 2015 Fiscal Year had such individual continued in the Company’s employ through the Bonus Qualification Date.

 

(ii) A Participant who is on a leave of absence or whose employment terminates after the start of the 2015 Fiscal Year but recommences prior to the Bonus Qualification Date may remain eligible at the discretion of the Committee, and the Committee may provide that individual with a pro-rated portion (based on period or periods of active employment during such year) of the bonus such individual would have earned, based on the Company’s actual performance for the 2015 Fiscal Year had such individual remained continuously in the Company’s employ through the Bonus Qualification Date.

 

3.03 For purposes of the Plan:

 

A. A Participant shall be considered an employee for so long as such individual remains employed by the Company or one or more corporations that are subsidiary corporations of the Company at all times during the 2015 Fiscal Year.

 

B. Each corporation (other than the Company) in an unbroken chain of corporations beginning with the Company shall be considered to be a subsidiary of the Company, provided each such corporation (other than the last corporation in the unbroken chain) owns, at the time of determination, stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

2

 

C. Unless defined otherwise in any employment or severance agreement entitling the Participant to a full or pro-rated bonus upon a disability termination, permanent disability shall mean the Participant’s inability to engage in any substantial activity necessary to perform the duties and responsibilities of his position with the Company (or any subsidiary thereof) by reason of any medically-determinable physical or mental impairment which can be expected to result in such individual’s death or which has lasted, or can be expected to last, for a continuous period of not less than twelve (12) months.

 

D. In no event shall there be any duplication of bonus payments under this Plan and any employment agreement or severance agreement between the Company (or any subsidiary thereof) and a Participant that provides such individual with a stated bonus or bonus formula for a particular year or includes an annual bonus payment as part of a severance pay formula thereunder. Accordingly, in order to avoid any such potential duplication, such Participant shall only be entitled to receive the annual bonus amount to which he may otherwise be entitled under his employment or severance agreement based on the terms and conditions set forth therein and shall not be entitled to any bonus payment under the Plan. However, the accelerated vesting of any outstanding equity awards held by the Participant under any of the Company’s stock plans, including any outstanding stock options, restricted stock or restricted stock unit awards, or the extension of any exercise periods for such stock options, shall not be deemed to constitute a bonus payment for purposes of this Section 3.03D.

 

IV.                               BONUS AWARDS

 

4.01 The following provisions shall govern the calculation and payment of the individual bonus awards that become payable under the Plan.

 

(a) The individual bonus award payable under the Plan to each Participant for the 2015 Fiscal Year shall be payable in cash on the Bonus Payment Date (as defined in Section 5.01), with the cash bonus amount to be determined on the basis of the performance of the Company and the achievement of the divisional or departmental goals, as applicable, to which the bonus potential for that Participant has been allocated in accordance with Section 3.01.

 

(b) The performance of the Company shall be measured in terms of (i) the revenue for the Company and (ii) the net income before depreciation, amortization, stock based compensation, interest and taxes, and certain other expenses and subject to certain adjustments, all as specified in Section 4.02 (“Adjusted EBITDA”), for the Company.  Accordingly, fifty percent (50%) of the portion of the bonus potential allocated to the performance of the Company shall be based upon the achievement of the revenue target (“Revenue Targets”) specified for the Company in the Performance Goals Schedule, and the remaining fifty percent (50%) of the bonus potential allocated to the performance of the Company shall be based upon the achievement of the Adjusted EBITDA target (“Adjusted EBITDA Targets”) specified for the Company in the Performance Goals Schedule.

 

3

 

4.02 The following provisions shall govern the calculation of the levels at which the Revenue Targets and Adjusted EBITDA Targets are attained for the 2015 Fiscal Year and the determination of the bonus amounts based on those calculations:

 

(a) The actual level at which revenue for the Company has been attained for the 2015 Fiscal Year will be determined on the basis of the revenues to be reported in the Company’s Financial Statements (as defined in Section 4.03) for such fiscal year and will be calculated, for purposes of the Plan, in a manner consistent with the methodology utilized by the Committee in establishing the Company Revenue Targets.

 

(b) In determining the actual level at which Adjusted EBITDA for the Company has been attained, Adjusted EBITDA will be determined consistent with the Company’s methodology for calculating Adjusted EBITDA for financial reporting purposes. For financial reporting purposes, Adjusted EBITDA is defined as net income before net interest expense, provision (benefit) for income tax expense, depreciation, amortization, stock-based compensation, litigation or dispute settlement charges or gains (including, without limitation, fees, expenses, damages and settlement costs related to litigation, arbitration, investigations, disputes or similar matters), transaction related costs (including, without limitation, expenses resulting from actual or potential transactions such as business combinations, mergers, acquisitions, and financing transactions, and including compensation expense and expense for advisors and representatives such as investment bankers, consultants, attorneys and accounting firms), restructuring and other exit costs (including, without limitation, severance expenses, facility closure expenses, relocation costs and other restructuring charges) and impairment of goodwill, intangible assets and long-lived assets.  In addition, to the extent the following are not otherwise taken into account in calculating Adjusted EBITDA for financial reporting purposes, Adjusted EBITDA shall be calculated before, and expenses for the purpose of calculating Adjusted EBITDA shall exclude: (1) any bonus amounts which accrue under this Plan; (2) any adjustments to Adjusted EBITDA attributable to a change in accounting principles that occurs after the start of the 2015 Fiscal Year (such that the actual Adjusted EBITDA is calculated consistently with Adjusted EBITDA target as it relates to accounting principles) ; (3) all items of gain, loss or expense determined to be extraordinary, unusual or non-recurring (it being understood and agreed that Item 10(e) of Regulation S-K under the Securities Act of 1933 shall not constitute a limitation on any such determination); (4) losses, charges or expenses with respect to litigation, investigations or other legal matters; and (5) all items of gain, loss or expense related to the sale or divestiture of a business; provided, however, that in determining the actual level at which the Company Adjusted EBITDA has been attained, the associated amount under clause (1), clause (3) or clause (4) shall be excluded from the calculation of Adjusted EBITDA only to the extent the actual aggregate amount under clause (1), clause (3) or clause (4) exceeds the aggregate budgeted amount therefor that was included in the Company’s Adjusted EBITDA Targets set forth in the Performance Goals.

 

(c) In the event the actual foreign currency exchange rate (determined as set forth below) for the GBP: U.S. Dollar for the 2015 Fiscal Year is lower than 1:1.48 (the “GBP  Floor”), the final revenue and/or Adjusted EBITDA calculations for the Company will be adjusted using the GBP Floor. In the event the actual foreign currency exchange rate (determined as set forth below) for the Euro: U.S. Dollar for the 2015 Fiscal Year is lower than 1:1.11 (the

 

4

 

“Euro Floor”), the final revenue and Adjusted EBITDA calculations for the Company will be adjusted using the Euro Floor. For the purpose of clarity, the GBP Floor and/or the Euro Floor will not be used to adjust the final revenues and Adjusted EBITDA calculations in the event the actual foreign currency exchange rates for the GBP: U.S. Dollar and/or the Euro: U.S. Dollar for such financial measures for the 2015 Fiscal Year are higher than the GBP Floor or the Euro Floor, respectively. For the purposes of this paragraph, an “actual foreign currency exchange rate” will be determined for each of year-end revenues and Adjusted EBITDA and calculated by (i) translating into U.S. Dollars the year-end revenues and Adjusted EBITDA amounts for the applicable non-U.S. subsidiaries in a manner consistent with the Company’s historical methodology for financial reporting purposes and (ii) dividing each such U.S. Dollars amount by its pre-translation (GBP or Euro) year-end revenues or Adjusted EBITDA amount, as applicable.

 

(d) In the event the Company acquires other companies or businesses during the 2015 Fiscal Year, the financial performance of those acquired entities shall not be taken into account in determining whether the Revenue Targets or Adjusted EBITDA Targets for the Company for the 2015 Fiscal Year have been achieved.

 

(e) Should the Company sell, divest or spin off a business during the 2015 Fiscal Year and the financial performance of such business was taken into account in establishing the Revenue Targets and Adjusted EBITDA Targets set forth in the Performance Goals Schedule, then for the purpose of determining whether the Revenue Targets or Adjusted EBITDA Targets for the Company for the 2015 Fiscal Year have been attained, the revenue and Adjusted EBITDA calculations for the Company shall be made (1) by taking into account the actual revenue and Adjusted EBITDA performance of the divested business during the portion of the 2015 Fiscal Year preceding the closing of such sale, divestiture or spin off and (2) for the post-closing portion of the 2015 Fiscal Year, by assuming that the sold, divested or spun business attained the level of revenue and Adjusted EBITDA performance that was projected for that period by the Committee for purposes of establishing the “Target” bonus payout levels (i.e., payout level 6) for the Revenue Targets and Adjusted EBITDA Targets for the Company.

 

4.03 The Committee shall, within seventy-five (75) days following the close of the 2015 Fiscal Year, determine and certify on the basis of the Company’s financial statements for such fiscal year as publicly reported by the Company in connection with its earnings release related to the 2015 Fiscal Year (the “Financial Statements”), the actual level of attainment for revenue and Adjusted EBITDA for the 2015 Fiscal Year. Such certification shall be included as part of the formal minutes of the meeting at which such determinations are made. On the basis of such certification, the Committee shall determine the actual bonus award for each Participant.  However, the Committee, in making such determination, shall not award a bonus in excess of the dollar amount determined for the Participant on the basis of the bonus potential established for the particular levels at which revenue and Adjusted EBITDA for the 2015 Fiscal Year are in fact attained unless the Committee determines that it is in the best interests of the Company to do so. In the event that revenue or Adjusted EBITDA falls between two specified levels set forth in the schedule approved by the Committee, the resulting bonus amount shall be interpolated on a straight-line basis between those two points. In no event shall the bonus awarded to any Participant exceed the maximum dollar limitation of Section 4.05.

 

5

 

4.04 Except as otherwise provided in Section 3.02, no Participant shall earn or accrue any right to any portion of a bonus award hereunder until the Bonus Qualification Date.

 

4.05 In no event shall the actual bonus amount payable under this Plan to any individual Participant for the 2015 Fiscal Year exceed the dollar amount of One Million Five Hundred Thousand dollars ($2,000,000).

 

V.                                    PAYMENT OF BONUS AWARDS

 

5.01 The actual bonus to which each Participant becomes entitled based on the certified level at which the Revenue and Adjusted EBITDA Targets are actually attained for the 2015 Fiscal Year shall be paid in cash, subject to the Company’s collection of all applicable federal, state and local income, employment and payroll withholding taxes. Schedule II attached hereto sets forth the bonus amounts payable to each Participant based on the level at which such Revenue and Adjusted EBITDA Targets are attained. Except as otherwise provided in Section 3.02, the bonus payments shall be made in the 2016 calendar year but not later than March 15, 2016, with the actual payment date to constitute the Bonus Payment Date.

 

VI.                               GENERAL PROVISIONS

 

6.01 The Committee may at any time amend, suspend or terminate the Plan, provided such action is effected by written resolution and is subject to stockholder approval to the extent required under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”). Moreover, the Committee reserves the right to amend this Plan as may be necessary or appropriate to avoid adverse tax consequences under Section 409A of the Code.

 

6.02 No amounts awarded or accrued under this Plan shall actually be funded, set aside or otherwise segregated prior to payment. The obligation to pay the bonuses awarded hereunder shall at all times be an unfunded and unsecured obligation of the Company. Plan participants shall have the status of general creditors and shall look solely to the general assets of the Company for the payment of their bonus awards.

 

6.03 No Participant shall have the right to alienate, pledge or encumber his/her interest in this Plan or any bonus payable hereunder, and such interest shall not (to the extent permitted by law) be subject in any way to the claims of the employee’s creditors or to attachment, execution or other process of law.

 

6.04 Neither the action of the Company in establishing the Plan, nor any action taken under the Plan by the Committee, nor any provision of the Plan, shall be construed so as to grant any person the right to remain in the employ of the Company or its subsidiaries for any period of specific duration. Rather, each employee will be employed “at-will,” which means that either such employee or the Company may terminate the employment relationship at any time for any reason, with or without cause, subject in each case to any applicable benefits that may become payable under any employment agreement between such person and the Company or any of its subsidiaries.

 

6

 

6.05 The Plan shall be administered, operated and construed in compliance with the requirements of the short-term deferral exception to Section 409A of the Code and Treasury Regulations Section 1.409A-1(b)(4). Accordingly, to the extent there is any ambiguity as to whether one or more provisions of the Plan would otherwise contravene the requirements or limitations of Section 409A of the Code applicable to such short-term deferral exception, then those provisions shall be interpreted and applied in a manner that does not result in a violation of the requirements or limitations of Section 409A of the Code and the Treasury Regulations thereunder that apply to such exception.

 

6.06 This is the full and complete agreement between the Participants and the Company with respect to their incentive bonus compensation for the 2015 Fiscal Year and the related service period through the Bonus Qualification Date. This Plan does not supersede, but is supplemental to, any provisions of any employment agreement to which any of the Participants in this Plan may be a party.

 

7

 

SCHEDULE I

 

	
Name
    	
 
    	
Corporate
    	
 
    	
Divisional/Departmental
    
	
Dorion, Michael
    	
 
    	
20% (Consolidated); 60% (Domestic)
    	
 
    	
20%
    
	
Howard, Clark
    	
 
    	
20% (Consolidated); 60% (Domestic)
    	
 
    	
20%
    
	
Hughes, Rhys
    	
 
    	
30% (Consolidated)
    	
 
    	
70%
    
	
Levin, Scott
    	
 
    	
80% (Consolidated)
    	
 
    	
20%
    
	
Michie, Cheryl
    	
 
    	
20% (Consolidated); 60% (Domestic)
    	
 
    	
20%
    
	
Moeller, Tom
    	
 
    	
30% (Consolidated)
    	
 
    	
70%
    
	
Mueller, Holger
    	
 
    	
20% (Consolidated); 60% (Domestic)
    	
 
    	
20%
    
	
Saunders, Anne
    	
 
    	
30% (Consolidated)
    	
 
    	
70%
    
	
Sheehan, Becky
    	
 
    	
80% (Consolidated)
    	
 
    	
20%
    

 

 

SCHEDULE II

 

	
 
    	
 
    	
Rob Apatoff
    	
 
    	
Becky Sheehan/Scott Levin
    	
 
    
	
 
    	
 
    	
Consolidated
    	
 
    	
Consolidated
    	
 
    
	
 
    	
 
    	
Revenue
    	
 
    	
Adj   EBITDA
    	
 
    	
Revenue
    	
 
    	
Adj   EBITDA
    	
 
    
	
 
    	
 
    	
Payout %
    	
 
    	
Payout %
    	
 
    	
Payout %
    	
 
    	
Payout %
    	
 
    
	
1
    	
 
    	
25.0
    	
%
    	
25.0
    	
%
    	
20.0
    	
%
    	
20.0
    	
%
    
	
2
    	
 
    	
30.0
    	
%
    	
30.0
    	
%
    	
24.0
    	
%
    	
24.0
    	
%
    
	
3
    	
 
    	
35.0
    	
%
    	
35.0
    	
%
    	
28.0
    	
%
    	
28.0
    	
%
    
	
4
    	
 
    	
40.0
    	
%
    	
40.0
    	
%
    	
32.0
    	
%
    	
32.0
    	
%
    
	
5
    	
 
    	
45.0
    	
%
    	
45.0
    	
%
    	
36.0
    	
%
    	
36.0
    	
%
    
	
6
    	
 
    	
50.0
    	
%
    	
50.0
    	
%
    	
40.0
    	
%
    	
40.0
    	
%
    
	
7
    	
 
    	
55.0
    	
%
    	
55.0
    	
%
    	
42.0
    	
%
    	
42.0
    	
%
    
	
8
    	
 
    	
60.0
    	
%
    	
60.0
    	
%
    	
44.0
    	
%
    	
44.0
    	
%
    
	
9
    	
 
    	
65.0
    	
%
    	
65.0
    	
%
    	
46.0
    	
%
    	
46.0
    	
%
    
	
10
    	
 
    	
70.0
    	
%
    	
70.0
    	
%
    	
48.0
    	
%
    	
48.0
    	
%
    
	
11
    	
 
    	
75.0
    	
%
    	
75.0
    	
%
    	
50.0
    	
%
    	
50.0
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Anne   Saunders
    	
 
    	
Tom   Moeller / Rhys Hughes
    	
 
    
	
 
    	
 
    	
Consolidated
    	
 
    	
Division
    	
 
    	
Consolidated
    	
 
    	
Division
    	
 
    
	
 
    	
 
    	
Payout %
    	
 
    	
Payout %
    	
 
    	
Payout %
    	
 
    	
Payout %
    	
 
    
	
1
    	
 
    	
11.3
    	
%
    	
26.3
    	
%
    	
15.0
    	
%
    	
35.0
    	
%
    
	
2
    	
 
    	
13.5
    	
%
    	
31.5
    	
%
    	
18.0
    	
%
    	
42.0
    	
%
    
	
3
    	
 
    	
15.8
    	
%
    	
36.8
    	
%
    	
21.0
    	
%
    	
49.0
    	
%
    
	
4
    	
 
    	
18.0
    	
%
    	
42.0
    	
%
    	
24.0
    	
%
    	
56.0
    	
%
    
	
5
    	
 
    	
20.3
    	
%
    	
47.3
    	
%
    	
27.0
    	
%
    	
63.0
    	
%
    
	
6
    	
 
    	
22.5
    	
%
    	
52.5
    	
%
    	
30.0
    	
%
    	
70.0
    	
%
    
	
7
    	
 
    	
23.4
    	
%
    	
54.6
    	
%
    	
31.2
    	
%
    	
72.8
    	
%
    
	
8
    	
 
    	
24.3
    	
%
    	
56.7
    	
%
    	
32.4
    	
%
    	
75.6
    	
%
    
	
9
    	
 
    	
25.2
    	
%
    	
58.8
    	
%
    	
33.6
    	
%
    	
78.4
    	
%
    
	
10
    	
 
    	
26.1
    	
%
    	
60.9
    	
%
    	
34.8
    	
%
    	
81.2
    	
%
    
	
11
    	
 
    	
27.0
    	
%
    	
63.0
    	
%
    	
36.0
    	
%
    	
84.0
    	
%
    

 

[Continues on Next Page]

 

 

	
 
    	
 
    	
Clark Howard
    	
 
    	
Michael Dorion / Holger Mueller
    	
 
    
	
 
    	
 
    	
Consolidated
    	
 
    	
Domestic
    	
 
    	
Consolidated
    	
 
    	
Domestic
    	
 
    
	
 
    	
 
    	
Payout %
    	
 
    	
Payout %
    	
 
    	
Payout %
    	
 
    	
Payout %
    	
 
    
	
1
    	
 
    	
7.0
    	
%
    	
21.0
    	
%
    	
10.0
    	
%
    	
30.0
    	
%
    
	
2
    	
 
    	
8.4
    	
%
    	
25.2
    	
%
    	
12.0
    	
%
    	
36.0
    	
%
    
	
3
    	
 
    	
9.8
    	
%
    	
29.4
    	
%
    	
14.0
    	
%
    	
42.0
    	
%
    
	
4
    	
 
    	
11.2
    	
%
    	
33.6
    	
%
    	
16.0
    	
%
    	
48.0
    	
%
    
	
5
    	
 
    	
12.6
    	
%
    	
37.8
    	
%
    	
18.0
    	
%
    	
54.0
    	
%
    
	
6
    	
 
    	
14.0
    	
%
    	
42.0
    	
%
    	
20.0
    	
%
    	
60.0
    	
%
    
	
7
    	
 
    	
14.7
    	
%
    	
44.1
    	
%
    	
21.0
    	
%
    	
63.0
    	
%
    
	
8
    	
 
    	
15.4
    	
%
    	
46.2
    	
%
    	
22.0
    	
%
    	
66.0
    	
%
    
	
9
    	
 
    	
16.1
    	
%
    	
48.3
    	
%
    	
23.0
    	
%
    	
69.0
    	
%
    
	
10
    	
 
    	
16.8
    	
%
    	
50.4
    	
%
    	
24.0
    	
%
    	
72.0
    	
%
    
	
11
    	
 
    	
17.5
    	
%
    	
52.5
    	
%
    	
25.0
    	
%
    	
75.0
    	
%
    

 

	
 
    	
 
    	
Cheryl   Michie
    	
 
    
	
 
    	
 
    	
Consolidated
    	
 
    	
Domestic
    	
 
    
	
 
    	
 
    	
Payout %
    	
 
    	
Payout %
    	
 
    
	
1
    	
 
    	
7.5
    	
%
    	
22.5
    	
%
    
	
2
    	
 
    	
9.0
    	
%
    	
27.0
    	
%
    
	
3
    	
 
    	
10.5
    	
%
    	
31.5
    	
%
    
	
4
    	
 
    	
12.0
    	
%
    	
36.0
    	
%
    
	
5
    	
 
    	
13.5
    	
%
    	
40.5
    	
%
    
	
6
    	
 
    	
15.0
    	
%
    	
45.0
    	
%
    
	
7
    	
 
    	
15.8
    	
%
    	
47.3
    	
%
    
	
8
    	
 
    	
16.5
    	
%
    	
49.5
    	
%
    
	
9
    	
 
    	
17.3
    	
%
    	
51.8
    	
%
    
	
10
    	
 
    	
18.0
    	
%
    	
54.0
    	
%
    
	
11
    	
 
    	
18.8
    	
%
    	
56.3
    	
%Exhibit 10.2

 

AMENDMENT #1 TO SERVICES AGREEMENT

 

This AMENDMENT #1 TO SERVICES AGREEMENT (the “Addendum”), dated as of April 1, 2015 (the “Effective Date”), is entered into between Liberty Interactive Corporation (“Liberty”) and Provide Commerce, Inc. (“Provide”).

 

RECITALS

 

A.                                    Liberty and Provide (collectively, the “Parties”) have previously entered into a Services Agreement dated December 31, 2014 (the “Agreement”) and desire to modify certain terms and conditions therein.

 

B.                                    All capitalized terms used herein but not defined shall have the meanings given to such terms in the Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing, and in consideration of mutual covenants and agreements of the Parties hereto, the Parties mutually covenant and agree as follows:

 

1.                                      Section 6.02 of the Agreement shall be amended and replaced in its entirety with the following:

 

“6.02                  Termination.  Notwithstanding anything herein to the contrary, the rights and obligations of each Party under this Services Agreement shall terminate, and the obligation of the Service Provider to provide or cause to be provided any Service shall cease, on the earliest to occur of (i) the last date indicated for the termination of any Service as indicated on the Services Schedule, (ii) the date on which the provision of all Services has been cancelled pursuant to Article IV hereof, (iii) the date on which this Services Agreement is terminated by either Party, as the case may be, in accordance with the terms of Section 6.03 hereof or (iv) June 30, 2015; provided, that, in each case, no such termination shall relieve any Party of any liability for any breach of any provision of this Services Agreement prior to the date of such termination.”

 

2.                                      Exhibit A of the Agreement shall be amended and replaced in its entirety, as of the Effective Date, with the Exhibit A attached to this Amendment.

 

3.                                      Except as otherwise amended herein, the Agreement shall remain in full force and effect.

 

4.                                      This Amendment may be executed in any number of counterparts, each of which may be executed by less than all of the Parties hereto, and all of which together shall constitute one instrument.  This Amendment may be executed and delivered by facsimile and the Parties agree that such facsimile execution and delivery shall have the same force and effect as delivery of an original document with original signatures, and that each Party may use such facsimile signatures

 

1

 

as evidence of the execution and delivery of this Amendment by all Parties to the same extent that an original signature could be used.

 

5.                                      This Amendment shall be governed by, and construed in accordance with, the Laws of the State of Delaware, without regard to Laws that may be applicable under conflicts of Laws principles (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Law of any jurisdiction other than the State of Delaware.

 

IN WITNESS WHEREOF, Liberty and Provide have executed this Amendment as of the Effective Date.

 

	
 
    	
LIBERTY   INTERACTIVE CORPORATION
    
	
 
    	
 
    
	
 
    	
Signed:
    	
/s/   Craig Troyer
    
	
 
    	
 
    
	
 
    	
Printed   Name:
    	
Craig   Troyer
    
	
 
    	
 
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PROVIDE   COMMERCE, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Signed:
    	
/s/   Scott D. Levin
    
	
 
    	
 
    
	
 
    	
Printed   Name:
    	
Scott   D. Levin
    
	
 
    	
 
    
	
 
    	
Title:
    	
Executive   Vice President and General Counsel
    
								

 

2

 

Exhibit A
 Schedule of Services

 

	
Functional Area
    	
 
    	
Description of
   Service
    	
 
    	
Service End
   Date(1)
    	
 
    	
Payment for Service(2)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
IT   SERVICES
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Network Access through VPN, where applicable.
    	
 
    	
As   Needed.
    	
 
    	
Outside Date
    	
 
    	
 

Hourly Rates for Services between April 1, 2015 and Outside   Date: $75/Hr
    
	
Segregated Data Storage on Provide’s Servers.
    	
 
    	
Access   restricted to drive segments containing RedEnvelope data, as needed.
    	
 
    	
Outside Date
    	
 
    	
All OH Telecom and Network Services shall be billed to RedEnvelope at   cost.
    
	
E-mail (including web based and   VPN access)
    	
 
    	
Same   as pre-close level of access and support.
    	
 
    	
Outside Date
    	
 
    	
 
    
	
Help Desk (including Footprints support   for all IT Services specified herein)
    	
 
    	
Same   as pre-close level of access and support.
    	
 
    	
Outside Date
    	
 
    	
 
    

 

(1)  Services contemplated in this Exhibit A shall initiate on April 1, 2015. The Receiving Party shall have the right to terminate a service soon as practicable (in accordance with the terms of the Services Agreement) but the provision of such service shall not extend past June 30, 2015 (“Outside Date”). The Outside Date may be amended by the Parties from time to time upon written amendment of this Exhibit A.

(2)  Invoices shall be submitted electronically on a bi-weekly basis, with such amounts being due within thirty (30) days of receipt of invoice.

 

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Telecom and Network Services (e.g.   internet, phone, fax, conference call, video conference, support for company   approved cell/smart phones, PDAs, etc.)
    	
 
    	
Same   as pre-close level of access and support.
    	
 
    	
Outside Date
    	
 
    	
 
    
	
IT Backup/Data Security
    	
 
    	
Same   as pre-close level of access and support, as needed.
    	
 
    	
Outside Date
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Computer Accessories (e.g.   keyboard, mouse, monitors, ethernet cables, etc.)
    	
 
    	
To   the extent it is feasible, the same as pre-close level of access and support.
    	
 
    	
Outside Date
    	
 
    	
Provide will pass through the cost to purchase any additional   accessories; such costs to be approved by RedEnvelope upon request for such   accessories.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Computer Software (i.e. all laptop/desktop   software currently licensed to Provide, like Microsoft Office,   Exchange, etc.)
    	
 
    	
To   the extent it is feasible, the same as pre-close level of access and support   for those suites of software. Computer Software access and support is   contingent upon RedEnvelope’s agreement to destroy any such Computer Software   after use.
    	
 
    	
Outside Date
    	
 
    	
Provide will pass through Provide’s cost to purchase/license any   software
    

 

2

 

	
Additional Transition-Out   Services

 -    Data Transfer;

 -    Hard Good transfer;

 -    Removal of Equipment.
    	
 
    	
Assistance   (as needed) to transition the above-listed services, stand-alone systems, or   platforms of Provide out to RedEnvelope.
    	
 
    	
Outside Date
    	
 
    	
External costs shall pass through to RedEnvelope.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
MANAGEMENT   SERVICES
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Executive Management
    	
 
    	
Management   of Wind-Down and Potential sale of Business and/or Assets
    	
 
    	
Outside Date
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Continued legal support for corporate filings   and notices from Provide
    	
 
    	
Includes   access and support, including but not limited to support for corporate   filings, notices, intellectual property management, and contract review.
    	
 
    	
Outside Date
    	
 
    	
Hourly Rates for Services between April 1, 2015 and Outside   Date:

·                       Management: 

EVP,   SCO: $200/Hr 

VP,   GM: $140/Hr 

VP,   SCO: $140/Hr 

VP,   HR: $100/Hr 

·                       Legal:   $140/Hr 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Accounting Services
    	
 
    	
Same   level
    	
 
    	
Outside Date
    	
 
    	
·                       On-site   Wind-down
    

 

3

 

	
Invoice Processing
    	
 
    	
Provide   will continue to administer the collection of receivables and payment of   bills on behalf of RedEnvelope (Provide not responsible for payment)
    	
 
    	
Outside   Date
    	
 
    	
Services   related to Inventory Management: $100/Hr 

·                  All other   services (e.g., Payroll, General HR, Accounting): $75/Hr

 
    
	
Access to financial systems
    	
 
    	
Access   and support as currently provided, plus normal course access and assistance   for any transition to a new platform.
    	
 
    	
Outside   Date
    	
 
    	
All filing costs, RedEnvelope employee costs or outside costs   incurred shall pass through to RedEnvelope.
    
	
Payroll
    	
 
    	
Payroll   services for salary, commissions, bonuses, direct deposit, manual   checks, etc.
    	
 
    	
Outside   Date
    	
 
    	
 
    
	
On-Site Wind-Down Services
    	
 
    	
Shut   Down of Operations; Return Handling, etc.
    	
 
    	
Outside   Date
    	
 
    	
 
    

 

4

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