Document:

FORM OF EMPLOYMENT AGREEMENT

 Exhibit 10.2 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (the “Employment Agreement”) is entered, effective
                    , (the “Effective Date”) by and between HealthExtras, Inc. (the “Company”) and
                     (the “Executive”). 
  
 WHEREAS, the Company is engaged in business as a pharmacy benefits manager; and 
  
 WHEREAS, The Executive is familiar with the business of the Company arising from his services as
                     for the Company and his careful study of the Company; and 
  
 WHEREAS, Executive and the Company wish to enter into this Employment Agreement to set forth the terms for employment
and compensation for the Executive; and 
  
 NOW, THEREFORE,
in consideration of the premises and mutual covenants herein and for other good and valuable consideration, the parties hereto hereby agree to enter into this Employment Agreement effective as of the Effective Date. 
  
 SECTION I 
 Term of Employment; Executive Representation. 
  

	1.1	Employment Term. Executive shall be employed by the Company under the terms of this Employment Agreement for a three-year period commencing on
                     (the “Employment Term”). Notwithstanding the foregoing, the Executive’s employment with the Company may be
terminated pursuant to Section VIII, on the terms and subject to the conditions set forth in this Employment Agreement. 

  

	1.2	Executive Representation. Executive hereby represents to the Company that the execution and delivery of this Employment Agreement by Executive and the Company, and the
performance by Executive of the Executive’s duties hereunder, shall not constitute a breach of, or otherwise contravene, the terms of any employment agreement, other agreement, or policy (including any covenant not to compete, solicit
employees, or customers of any prior employer(s)) to which Executive is a party or otherwise bound. Executive further warrants that he has not been the subject of any criminal, civil proceeding, investigated, or sanctioned by any licensing authority
of any state, Federal agency court, other public body, or of any self-regulatory organization. Executive further represents that he is not aware of any basis that he would not be fit to transact business with an agency or instrumentality of the
federal or any state government. 

  

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 SECTION II 
 Position. 
  

	2.1	During the Employment Term, Executive shall serve as the Company’s
                     and shall principally perform Executive’s duties to the Company and its affiliates from the Company’s offices
in Rockville, Maryland, subject to normal and customary travel requirements in the conduct of the Company’s business to customer locations and to its facilities, including (but not limited to) its facilities in Florida, Louisiana, Maryland,
Nevada, North Carolina, and Texas. In such position, Executive shall report to the Company’s Chief Executive Officer (herein “CEO”) and shall have such duties which shall be those normally performed by a
                    . 

  

	2.2	During the Employment Term, Executive will devote Executive’s full business time and best efforts to the performance of Executive’s duties hereunder and will not engage in
any other business, profession, or occupation for compensation or otherwise which would conflict with the rendition of such services either directly or indirectly, without the prior written consent of the CEO. 

  

	2.3	Executive has no equity interest in any company engaged in the same lines of business as the Company. Executive agrees not to acquire any interest in any such company without the
express consent of the Company. Notwithstanding the foregoing, the Executive may acquire up to a two percent interest in any publicly traded company so long as his activity with respect to such company remains a passive investment.

  

	2.4	Executive, as an obligation of employment, shall be/become familiar with requirements of law(s) applicable to the lines of business in which the Company is engaged and similarly
with respect to its legal obligations as a public company. Should any practice at the Company appear to be inconsistent with such requirements, the Executive shall report such incident or suspected activity to the CEO, or to counsel for the Company
(at the address identified in Section 11.7, below). Failure to comply with the obligations of this section is grounds for immediate dismissal. 

  
 SECTION III 
 Base Salary. 
  

	3.1	The Executive will be paid a base salary at regular installments in accordance with the Company’s usual payment practices. Effective as of
                    , the Executive’s base salary will be paid at an annual rate of
$            . The Executive’s base salary, as in effect at a given time hereunder, is hereinafter referred to as the “Base Salary.” Any changes to Base Salary during
the term of this Employment Agreement shall be as authorized by the CEO. 

  

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 SECTION IV 
 Incentive Bonus. 
  

	4.1	Executive is, and shall be, eligible to earn an incentive cash bonus award (an “Incentive Bonus”), as determined by the CEO. The current Incentive Bonus range for which
the Executive is eligible, subject to determination by the CEO, is set forth in Schedule 4-1. 

  
 SECTION V 
 Equity Arrangements. 
  

	5.1	The Executive is, and shall be, eligible to earn awards under the Company’s 2003 Equity Incentive Plan, and such similar programs as may be adopted from time-to-time to provide
long-term incentives for executives of the Company. 

  
 SECTION VI 
 Employee Benefits. 
  

	6.1	During the Employment Term, Executive shall be entitled to participate in the employee benefit plans of the Company maintained generally for employees (including, e.g., without
limitation, standard medical and dental benefits, and savings plan), as well as those maintained for other senior executives of the Company. In addition, Executive shall be eligible for the following benefits: 

  

	 	A.	Four weeks of paid vacation per year which may be taken at such times as approved by the CEO, which approval will not be unreasonably withheld; and 

  

	 	B.	An automobile allowance of $             per quarter (payable no less frequently than quarterly).

  

	 	C.	Term life insurance as currently in effect and to be maintained in an amount equal to at least
                     times the Executive’s Base Salary. 

  
 SECTION VII 
 Business Expenses. 
  

	7.1	During the Employment Term, reasonable business expenses incurred by Executive in the performance of Executive’s duties hereunder shall be reimbursed by the Company in
accordance with Company policies. 

  

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 SECTION VIII 
 Termination. 
  

	8.1	The Employment Term and Executive’s employment hereunder may be terminated by either party at any time and for any reason in accordance with the provisions of this Section
VIII. Notwithstanding any other provision of this Employment Agreement, the provisions of this Section VIII shall exclusively govern the Executive’s rights upon termination of employment with the Company and its affiliates. The following
provisions shall apply to termination of the Executive’s employment with the Company. 

  

	 	A.	By the Company for Cause. 

  

	 	(i)	The Employment Term and Executive’s employment hereunder may be immediately terminated by the Company for Cause (as defined below) at any time. 

  

	 	(ii)	For purposes of this Employment Agreement, “Cause” shall mean the Executive’s: (i) failure to comply with any law or regulation arising from conduct not
undertaken in good faith; (ii) commission of an act of fraud upon, or act evidencing dishonesty to, the Company, (iii) misappropriation of any funds, property, or rights of the Company; (iv) willful breach or habitual neglect of
Executive’s job duties or Executive’s failure or refusal to comply with explicit directives of the Company; (v) conviction of a felony or a misdemeanor involving moral turpitude; (vi) use or possession of illegal drugs at work or
Executive’s working under the influence of drugs at work; or (vii) Executive’s breach of the provisions of any non-competition or confidentiality agreements with, or written policies of, the Company or its affiliates to which
Executive is bound or subject. 

  

	 	(iii)	If Executive’s employment is terminated by the Company for Cause; Executive shall be entitled to receive: 

  

	 	(a)	The Base Salary through the date of termination; 

  

	 	(b)	Reimbursement for any unreimbursed business expenses properly incurred by Executive in accordance with Company policy prior to the date of the Executive’s termination; and

  

	 	(c)	Such Employee Benefits, if any, as to which Executive may be entitled under the terms of the employee benefit plans of the Company. 

  

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	 	B.	By the Company Without Cause or by the Executive with Good Reason (Including Death or Permanent Disability). 

  

	 	(i)	The Employment Term and Executive’s employment hereunder may be terminated by the Company at any time without Cause. 

  

	 	(ii)	If Executive’s employment is terminated by the Company without Cause, upon the death, or permanent disability of the Executive, or by the Executive for Good Reason, then
Executive shall be entitled to receive: 

  

	 	(a)	The Executive’s Base Salary, Automobile Allowance, and continuation of healthcare benefits at the Company’s expense, through the remaining Employment Term or for a period
of twelve months, whichever period is longer; 

  

	 	(b)	Any Incentive Bonus earned but unpaid as of the date of termination; 

  

	 	(c)	Reimbursement for any unreimbursed business expenses properly incurred by Executive in accordance with Company policy prior to the date of Executive’s termination; and

  

	 	(d)	Such Employee Benefits, if any, as to which Executive may be entitled to under the terms of the employee benefit plans of the Company. 

  

	 	(iii)	Executive shall have the right, upon not less than 30 days’ advance written notice to the Company, to terminate his employment hereunder for “Good Reason” (as
hereinafter defined) if the Company fails to substantially cure the action set forth as grounds for Good Reason, and such termination shall be treated as a termination of Executive’s employment by the Company without Cause pursuant to this
Employment Agreement. Any such notice of termination of employment by Executive for Good Reason must be given in writing to the CEO, within four calendar months after the occurrence of the event constituting Good Reason. 

  

	 	(a)	“Good Reason” means (i) the assignment to Executive of any duties inconsistent in any respect with Executive’s position (including status, offices, titles, and
reporting relationships), authority, duties, or responsibilities as of the Effective Date; and (ii) the Company’s failure to honor all of the terms of this Employment Agreement, excluding for such purpose any isolated, insubstantial, and
inadvertent action not taken in bad-faith and which is remedied by the Company promptly after receipt of written notice thereof from the Executive. 

  

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	 	(iv)	Permanent disability shall be determined based upon the ability of the Executive to perform the functions of
                    . The determination that the Executive is permanently disabled for purposes of any Company paid disability policy with
respect to the Executive shall be proof that the Executive is permanently disabled. 

  

	 	C.	By the Executive without Good Reason. 

  

	 	(i)	The Employment Term and Executive’s employment hereunder may be terminated by the Executive without Good Reason upon not less than 90 days’ advance written notice to the
Company. 

  

	 	(ii)	If Executive’s employment is terminated by the Executive without Good Reason, then Executive shall be entitled to receive: 

  

	 	(a)	The Base Salary through the date of termination; 

  

	 	(b)	Reimbursement for any unreimbursed business expenses properly incurred by Executive in accordance with Company policy prior to the date of Executive’s termination; and

  

	 	(c)	Such Employee Benefits, if any, as to which Executive may be entitled under the terms of the employee benefit plans of the Company. 

  

	 	D.	Termination Within 18 Months After Change in Control 

  

	 	(i)	In the event that Executive’s employment is terminated within eighteen months after a Change in Control by the Company without Cause or by Executive for Good Reason, Executive
shall be entitled to the same rights, payments and benefits as provided in paragraph B of this Section VIII, except that in lieu of the continuation of Base Salary provided in subparagraph (ii)(a) thereof, Executive shall be entitled to a lump sum
payment equal to two times Executive’s Base Salary (without regard to any reduction in Base Salary after the Change in Control). Notwithstanding the foregoing, if as provided in Appendix A Executive would otherwise be subject to the excise tax
imposed by Section 4999 of the Internal Revenue Code, the amounts payable under this Employment Agreement shall be reduced as provided in Appendix A. 

  

	 	(ii)	If any contest or dispute shall arise under this Employment Agreement involving termination of Executive’s employment with the Company after a Change in Control or involving
the failure or refusal of the Company to perform fully in accordance with the terms of this Section VIII, the Company shall reimburse Executive for all reasonable legal fees and related expenses, if any, incurred by Executive in connection with such
contest or dispute if a court of competent jurisdiction or an arbitration panel substantially upholds Executive’s position. 

  

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	 	(iii)	For purposes of this Section VIII, paragraph D: 

  

	 	(a)	“Cause” shall have the meaning given to such term in Section 8.1A(ii). 

  

	 	(b)	“Good Reason” shall have the meaning set forth in paragraph 8.1B(iii)(a) of Section VIII and shall also also include (i) any requirement of the Company that Executive
(a) be based anywhere more than fifty (50) miles from Executive’s primary office location and more than fifty (50) miles from Executive’s principal residence at the time of the Change in Control or (b) travel on Company
business to an extent substantially greater than the travel obligations of Executive immediately prior to such Change in Control; and (ii) the Company’s failure to continue to provide Executive with benefits in the aggregate substantially
equivalent to the benefits Executive was entitled under the employee benefit plans of the Company in which Executive was participating immediately prior to such Change in Control, at a substantially equivalent cost. 

  

	 	(c)	“Change in Control” shall have the meaning ascribed to such term in Appendix B. 

  

	 	E.	Any payment provided for in paragraphs A through D of this Section VIII constituting a plan that provides for deferral of compensation covered by Section 409A of the
Internal Revenue Code, shall be payable within thirty days following the six month period after the date of separation of service of the Executive. Otherwise, any payment provided for in paragraphs A through D of this Section VIII shall be paid
within thirty days after separation of service of the Executive. 

  
 SECTION IX 
 Notice of Termination. 
  

	9.1	Any purported termination of employment by the Company or by Executive (other than due to Executive’s death) shall be communicated by written Notice of Termination to the other
party hereto in accordance with Section 11.7 hereof. For purposes of this Employment Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Employment Agreement relied
upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of employment under the provision so indicated. 

  

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 SECTION X 
 Confidentiality. 
  

	10.1	Executive acknowledges and agrees to the provisions of the Confidentiality and Non-Competition Addendum set forth fully in Schedule 10-1 to this Employment Agreement, made a part
hereof, and acknowledged by the signatures of the Executive and Company (or their respective representatives). 

  
 SECTION XI 
 Miscellaneous. 

 

	11.1	Governing Law. This Employment Agreement, except as otherwise expressly provided, shall be governed by and construed in accordance with the laws of the State of Maryland,
without regard to conflicts of laws principles thereof. 

  

	11.2	Entire Agreement/Amendments. This Employment Agreement (together with its Schedules, Appendices and the Confidentiality and Non-Competition Addendum) contains the
entire understanding of the parties with respect to the employment of Executive by the Company. There are no restrictions, agreements, promises, warranties, covenants, or undertakings between the parties with respect to the subject matter herein
other than those expressly set forth herein. This Employment Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto. 

  

	11.3	No Waiver. The failure of a party to insist upon strict adherence to any term of this Employment Agreement on any occasion shall not be considered a waiver of such
party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Employment Agreement. 

  

	11.4	Severability. In the event that any one or more of the provisions of this Employment Agreement shall be or become invalid, illegal, or unenforceable in any respect, the
validity, legality, and enforceability of the remaining provisions of this Employment Agreement shall not be affected thereby. 

  

	11.5	Assignment. This Employment Agreement shall not be assignable by Executive. This Employment Agreement may be assigned by the Company to a company which is a successor in
interest to substantially all of the business operations of the Company. Such assignment shall become effective when the Company notifies the Executive of such assignment or at such later date as may be specified in such notice. Upon such
assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such successor company, provided that any assignee expressly assumes the obligations, rights, and privileges of this Employment
Agreement. 

  

	11.6	Successors; Binding Agreement. This Employment Agreement shall inure to the benefit of and be binding upon the personal or legal representatives, executors, administrators,
successors, heirs, distributees, devises, and legatees of the respective parties to this Employment Agreement. 

  

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	11.7	Notice. For the purpose of this Employment Agreement, notices and all other communications provided for in the Employment Agreement shall be in writing and shall be deemed to
have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, and addressed to the respective addresses set forth below or to such other address as either party may have furnished to the
other in writing in accordance herewith. Notice of change of address shall be effective only upon receipt. 

  

					
	If to the Company:	 	HealthExtras, Inc.
	 	 	800 King Farm Boulevard, 4th
Floor
	 	 	Rockville, MD 20850
	 	 	Attn:	  	General Counsel
		
	If to Executive:	 	To the most recent address of Executive set forth in the personnel records of the Company.

  

	11.8	Withholding Taxes. The Company may withhold from any amounts payable under this Employment Agreement such federal, state, and local taxes as may be required to be withheld
pursuant to any applicable law or regulation. 

  

	11.9	Counterparts. This Employment Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were
upon the same instrument. 

  
 [The remainder of this
page intentionally left blank. Signature page follows.] 
  

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 IN WITNESS WHEREOF, the parties hereto have duly executed this Employment Agreement as of the day
and year first above written. 
  

					
	HealthExtras, Inc.	 	Executive
			
	BY:	 	  

	 	  

	TITLE:	 	 	 	 

  

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 SCHEDULES TO THE EMPLOYMENT AGREEMENT OF JULY 1, 2005 
 BETWEEN HEALTHEXTRAS, INC. AND EXECUTIVE 
  
 Schedule 4-1 (Incentive Bonus) 
  
 The Executive participates in the Executives and Senior Management bonus pool, tier __, targeting a bonus ranging between 0 percent and
         percent of Base Salary. 
  
 Schedule 10-1 (See the Confidentiality and Non-Competition Addendum annexed to and made a part of the Employment Agreement) 
  

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 CONFIDENTIALITY AND NON-COMPETITION ADDENDUM TO THE 
 EMPLOYMENT AGREEMENT OF JULY 1, 2005 BETWEEN HEALTHEXTRAS, INC. AND EXECUTIVE 
  
 WHEREAS, HealthExtras, Inc. (“Company”) has and intends to devote large amounts of time, effort, and
expense in developing, acquiring, and using technical and non-technical information (“Confidential Information,” “Written Material,” and “Inventions” as more specifically defined below and referred to collectively as
“Proprietary Information”) in the healthcare delivery industry and human resource management industry and may, both on its behalf and on behalf of customers of the Company, develop, or participate in the development of additional
Proprietary Information 
  
 WHEREAS, during the employment
of                      (the “Executive”) with the Company, the Company anticipates the development of additional Proprietary
Information; and 
  
 WHEREAS, in the course of performance
of Executive’s duties for the Company, Executive will be given or have access to the Company’s Proprietary Information which is vital to the success of the Company’s business and the Company must be protected from the substantial
injury and loss that it would suffer as a result of violations of this Confidentiality and Non-Competition Addendum (“Confidentiality Addendum “); and 
  

WHEREAS, the Company is desirous of balancing its interests in protecting its Proprietary Information with Executive’s right to be free
from unreasonable restraints of trade; 
  
 NOW THEREFORE,
in consideration of good and valuable consideration, including but not limited to the employment or continued employment of Executive, the Company and Executive mutually agree as follows: 
  
 SECTION I 
 Confidential Information. 
  

	1.1	Non-Disclosure, Use and Return of Confidential Information. Executive agrees that at all times (both during his/her employment with the Company and after his/her separation
from the Company): (i) not to disclose Confidential Information to unauthorized persons, (ii) not to copy or use Confidential Information for unauthorized purposes, and (iii) to comply with any procedures that the Company may adopt to
preserve the confidentiality of Confidential Information. Upon termination of employment with the Company, Executive agrees to deliver to the Company all Confidential Information in his/her possession, including files stored in electronic or other
media, and agrees not to retain copies of any Confidential Information. If Executive has some question as to whether certain information falls within the scope of Confidential Information, he/she agrees to treat such information as Confidential
Information until told otherwise in writing by the Company. The Company further agrees to respond promptly when questioned about whether something is Confidential Information. 

  

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	1.2	Definitions. For purposes of this Confidentiality Addendum, the term Confidential Information means any information, whether or not reduced to writing: (i) that is not
generally known in the Company’s trade or industry, (ii) that the Company or its customers and clients treat, or is obligated to treat, as confidential, and (iii) that Executive may create or have access to as a result of his/her
employment with the Company. Confidential Information includes, but is not limited to, trade secrets, and other information concerning the Company’s products and services, business procedures, marketing, customers (including their identities,
services acquired from the Company, pricing, and contact list), and software. 

  
 SECTION II 
 Intellectual Property. 
  

	2.1	If during Executive’s employment with the Company, the Executive accomplishes or conceives any invention, creation, works, or intellectual property in any other forms, as a
result of or relating to the employment of Executive with the Company, the proprietary rights to such intellectual property, including but not limited to patent, copyright, trade secrets, and other related rights, shall be vested in the Company.

  

	2.2	Executive shall promptly give the Company full details of any invention or improvement which he/she may from time-to-time make or discover in the course of his/her duties, and to
further the interests of the Company’s undertaking with regard thereto. Any such invention or improvement shall be the property of the Company without any additional compensation to Executive, and Executive shall take all steps, and execute
such documents as may be necessary and reasonably required by the Company, at the expense of the Company, to procure and ensure that the Company obtains and retains complete and exclusive legal title to any such invention or improvement.

  

	2.3	The Executive shall assist the Company in obtaining, securing, and enforcing the abovementioned intellectual property rights as is required by the Company. 

 
 SECTION III 
 Return of Company Property. 
  

	3.1	Executive shall promptly, whenever requested by the Company, and in any event upon the termination of his/her employment with the Company, deliver to the Company all lists of
clients or customers, correspondence, and all other documents, papers, records, and any other properties which may have been prepared by him/her or have come into his/her possession in the course of his/her employment with the Company. Executive
shall not be entitled to, and shall not retain, any copies thereof. Title and copyright thereto shall be vested in the Company. 

  

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 SECTION IV 
 Non-Competition and Non-Solicitation. 
  

	4.1	Non-Competition. 

  

	 	A.	In consideration of the remuneration and benefits given by the Company hereunder and in view of Executive’s position in the Company that would enable him/her to get access to
trade secrets and other Confidential Information, Executive hereby explicitly agrees and commits for the period of his employment with the Company and for a period of 24 months thereafter, as follows: 

  

	 	(i)	That he/she shall not attempt in any manner to solicit from any of the Company’s clients business of the type performed by the Company, or to persuade any clients to cease
business, to reduce the amount of business which a client has customarily done or contemplates doing with the Company, or any of its subsidiary companies, whether or not the relationship with the Company and such client was originally established in
whole or in part through Executive’s efforts; 

  

	 	(ii)	That he/she shall not attempt to employ or assist anyone else to employ, any person who is/has been employed by the Company (or any of its affiliates and subsidiary companies)
within the six months period prior to the Executive’s separation from service with the Company; 

  

	 	(iii)	That he/she shall not at any time disclose to anyone any Confidential Information or trade secrets of the Company, or any client of the Company, or utilize such Confidential
Information or trade secrets for Executive’s own benefit, or for the benefit of any third parties; 

  

	 	(iv)	That he/she shall not remove from the Company, or make copies of, any memoranda, notes, records, computer diskettes/files, or other documents concerning the business of the Company
and/or its clients, compiled by the Executive, or made available to the Executive, during the employment. 

  

	 	B.	Executive agrees that should he/she violate this covenant, damages to the Company will be difficult to enforce. In recognition of the loss that a breach would cause, Executive
agrees that the twenty-four month restrictive period shall be extended so that the Company enjoys a complete, contiguous twenty-four month period during which Executive has honored this Confidentiality Addendum. 

  

	4.2	Reasonableness of Restrictions. Executive acknowledges: (i) that the restrictions in Section IV are reasonable in terms of scope: duration, geographically, and
otherwise, (ii) that the protection afforded to the Company hereunder is necessary to protect its legitimate business interests, and (iii) that the agreement to observe such restrictions form a material part of the consideration for the
Employment Agreement, including this Confidentiality Addendum, and his/her employment by the Company. 

  

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	4.3	Enforceability. In the event that, notwithstanding the foregoing, any of the provisions of Section IV shall be held to be invalid or unenforceable, Executive agrees that the
remaining provisions hereof shall nevertheless continue to be valid and enforceable as though the invalid or unenforceable parts had not been included therein. In the event that any provision of Section IV, relating to the time period and/or the
areas of restriction and/or any related aspects, shall be declared by a court of competent jurisdiction to exceed the maximum restrictions such court deems reasonable and enforceable, the time period and/or areas of restriction and/or related
aspects deemed reasonable and enforceable by the court shall become, and thereafter be, the maximum restriction in such regard, and the restriction shall remain enforceable to the fullest extent deemed reasonable by such court.

  

	4.4	Injunctive Relief. Executive understands that his/her failure to comply with the obligations under this Confidentiality Addendum and in particular the restrictions contained
in Section IV of this Confidentiality Addendum will cause the Company to suffer irreparable injury and harm, the full extent of which will, or may, be impossible to ascertain, and for which monetary damages will not be a complete remedy.
Accordingly, Executive agrees that the Company will, in addition to any other remedies available to it at law or in equity, be entitled to preliminary and permanent injunctive relief to enforce, or to prevent a breach of, the terms of this
Confidentiality Addendum. 

  

	4.5	Exception. Notwithstanding the foregoing or any other obligation imposed under this Confidentiality Addendum, the obligations of this Confidentiality Addendum do not apply in
the event that the Executive is terminated from employment without cause or terminates his/her employment for good cause, as described in the Employment Agreement. 

  
 SECTION V 
 Miscellaneous. 
  

	5.1	Assignability. This Confidentiality Addendum may be assigned only as part of, and consistent with the assignment provisions of Section 11.5 of the Employment Agreement
of which it is a part. 

  

	5.2	Successors; Binding Agreement. This Confidentiality Addendum (along with the entire Employment Agreement) shall inure to the benefit of and be binding upon the personal or
legal representatives, executors, administrators, successors, heirs, distributees, devises and legatees of the respective parties to the Employment Agreement (which includes this Confidentiality Addendum). 

  

	5.3	Governing Law. This Confidentiality Addendum will be deemed signed in Maryland, and will be governed by and construed in accordance with the laws of the State of Maryland,
without regard to conflict of laws. 

  

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	5.4	Surviving Obligations. The terms of this Confidentiality Addendum shall survive the expiration of the other provisions of the Employment Agreement. 

 
 [Remainder of this page intentionally left blank. Signature page follows.]

  

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 IN WITNESS WHEREOF, the parties to the Employment Agreement have duly executed, and thereby expressly
acknowledged and agreed to this Confidentiality Addendum to the Employment Agreement. 
  

					
	HealthExtras, Inc.	 	Executive
			
	BY:	 	  

	 	  

	TITLE:	 	 	 	 

  

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 APPENDIX A TO THE EMPLOYMENT AGREEMENT OF JULY 1, 2005 
 BETWEEN HEALTHEXTRAS, INC. AND EXECUTIVE 
  
 Cut-back to Safe Harbor Cap on Payments 
  
 (a) Notwithstanding anything in this Employment Agreement to the contrary, in the event it shall be determined that any payment, award, benefit or
distribution (or any acceleration of any payment, award, benefit or distribution) by the Company (or any of its affiliated entities) or any entity which effectuates a Change in Control (or any of its affiliated entities) to or for the benefit of
Executive, whether pursuant to the terms of this Employment Agreement or otherwise (the “Payments”), would be subject to the excise tax (the “Excise Tax”) imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the “Code”), then the amounts payable to Executive under this Employment Agreement shall be reduced (reducing first the payments under paragraph 8.1D of Section VIII of the Employment Agreement, unless an alternative method of
reduction is elected by Executive) to the maximum amounts will result in no portion of the Payments being subject to such excise tax (the “Safe Harbor Cap”). For purposes of reducing the Payments to the Safe Harbor Cap, only amounts
payable to Executive under this Employment Agreement (and no other Payments) shall be reduced, unless consented to by Executive. 
  
 (b) All determinations required to be made under this Appendix A shall be made by the public accounting firm that is retained by the Company as of the
date immediately prior to the Change in Control (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and Executive within ten (10) business days of the receipt of notice from the Company or
Executive that there has been a Payment, or such earlier time as is requested by the Company. Notwithstanding the foregoing, in the event (i) the Board shall determine prior to the Change in Control that the Accounting Firm is precluded from
performing such services under applicable auditor independence rules or (ii) the Audit Committee of the Board determines that it does not want the Accounting Firm to perform such services because of auditor independence concerns or
(iii) the Accounting Firm is serving as accountant or auditor for the person(s) effecting the Change in Control, the Board shall appoint another nationally recognized public accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses (including, but not limited to, the costs of retaining experts) of the Accounting Firm shall be borne solely by the Company and the Company shall
enter into any agreement requested by the Accounting Firm in connection with the performance of the services hereunder. 
  
 If the Accounting Firm determines that payments shall be reduced to the Safe Harbor Cap, it shall furnish Executive with a written opinion to that effect,
and to the effect that Executive is not required to report any Excise Tax on Executive’s federal income tax return. If the Accounting Firm determines that no Excise Tax would otherwise be payable by Executive, it shall furnish Executive with a
written opinion to such effect, and to the effect that Executive is not required to report any Excise Tax on Executive’s federal income tax return. The determination by the Accounting Firm shall be binding upon the Company and Executive (except
as provided in paragraph (c) below). 
  

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 (c) If it is established pursuant to a final determination of a court or the Internal Revenue Service
(the “IRS”) proceeding which has been finally and conclusively resolved, that Payments have been made to, or provided for the benefit of, Executive by the Company, which are in excess of the limitations provided in this Section 5
(hereinafter referred to as an “Excess Payment”), Executive shall repay the Excess Payment to the Company on demand, together with interest on the Excess Payment at the applicable federal rate (as defined in Section 1274(d) of the
Code) from the date of Executive’s receipt of such Excess Payment until the date of such repayment. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the determination, it is possible that
Payments which will not have been made by the Company should have been made (an “Underpayment”), consistent with the calculations required to be made under this Appendix A. In the event that it is determined (i) by the Accounting
Firm, the Company (which shall include the position taken by the Company, or together with its consolidated group, on its federal income tax return) or the IRS or (ii) pursuant to a determination by a court, that an Underpayment has occurred,
the Company shall pay an amount equal to such Underpayment to Executive within ten (10) days of such determination together with interest on such amount at the applicable federal rate from the date such amount would have been paid to Executive
until the date of payment. Executive shall cooperate; to the extent Executive’s expenses are reimbursed by the Company, with any reasonable requests by the Company in connection with any contests or disputes with the IRS in connection with the
Excise Tax or the determination of the Excess Payment. Notwithstanding the foregoing, in the event that amounts payable under this Employment Agreement were reduced pursuant to paragraph (a) of this Appendix A and the value is stock options is
subsequently redetermined by the Accounting Firm (as defined below) within the context of Treasury Regulation §1.280G-1 Q/A 33 that reduces the value of the Payments attributable to such options, the Company shall promptly pay to Executive any
amounts payable under this Employment Agreement that were not previously paid solely as a result of paragraph (a) up to the Safe Harbor Cap. 
  

 19 

 APPENDIX B TO THE EMPLOYMENT AGREEMENT OF JULY 1, 2005 
 BETWEEN HEALTHEXTRAS, INC. AND EXECUTIVE 
  
 Definition of Change in Control 
  
 For purposes of this Employment Agreement, “Change in Control” means the occurrence of any one of the following events: 
  
 (i) individuals who, on June 7, 2005 constitute the
Board (the “Incumbent Directors”) cease for any reason within any twenty-four (24) month period to constitute at least a majority of the Board (or the board of directors of any successor to the Company), provided that any person
becoming a director subsequent to such date whose election or nomination for election was approved by a vote of at least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the
Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the
Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board (including by reason of any
agreement intended to avoid or settle such election contest or solicitation of proxies) shall be deemed to be an Incumbent Director until twenty-four (24) months after such election; 
  
 (ii) any “person” (as such term is defined in
Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 35% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (the
“Company Voting Securities”); provided, however, that the event described in this paragraph (ii) shall not be deemed to be a Change in Control by virtue of any of the following acquisitions: (A) by the Company
or any Subsidiary, (B) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, (C) by any underwriter temporarily holding securities pursuant to an offering of such securities,
(D) pursuant to a Non-Qualifying Transaction, as defined in paragraph (iii), or (E) by any person of Company Voting Securities from the Company, if a majority of the Incumbent Board approves in advance the acquisition of beneficial
ownership of 35% or more of Company Voting Securities by such person; 
  
 (iii) the consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its Subsidiaries that requires the approval of the Company’s
stockholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination: (A) more than 50% of the total 
  

 20 

 voting power of (x) the corporation resulting from such Business Combination (the “Surviving
Corporation”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of at least 90% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent
Corporation”), is represented by Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to
such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Business Combination,
(B) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the beneficial owner, directly or indirectly, of 35% or more of the total
voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (C) at least a majority of the members of the board of directors of
the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were Incumbent Directors at the time of the Board’s approval of the execution of the initial
agreement providing for such Business Combination (any Business Combination which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); 
  
 (iv) the stockholders of the Company approve a plan of
complete liquidation or dissolution of the Company or the consummation of a sale of all or substantially all of the Company’s assets; or 
  
 (v) the occurrence of any other event that the Board determines by a duly approved resolution constitutes a Change in Control. 

 
 Notwithstanding the foregoing, a Change in Control of the Company shall not be deemed to
occur solely because any person acquires beneficial ownership of more than 35% of the Company Voting Securities as a result of the acquisition of Company Voting Securities by the Company which reduces the number of Company Voting Securities
outstanding; provided, that if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that increases the percentage of outstanding Company Voting Securities beneficially
owned by such person, a Change in Control of the Company shall then occur. 
  

 21Employment Agreement

 Exhibit 10.40 
  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  
 This Executive Employment Agreement (“Agreement”) is made effective as of September 12, 2005 (“Effective
Date”), by and between Provide Commerce, Inc. (“Company”) and Eric Carlborg (“Executive”). 
  
 The parties agree as follows: 
  
 1. At-Will Employment. Company and Executive agree that Executive’s employment is at-will and not for a specified period, and either party may
terminate the employment relationship at anytime, with or without cause, subject to section 6 below and its subparts. 
  
 2. Duties. 
  
 2.1 Position. Executive is employed as Chief Financial Officer and will report to the Chief Executive Officer (“CEO”).
Executive shall have the duties and responsibilities as set forth on the attached job description, as may be amended by Company from time to time. Executive shall perform faithfully and diligently all duties assigned to Executive. Company reserves
the right to modify Executive’s position and duties at any time in its sole and absolute discretion. 
  
 2.2 Best Efforts/Full-time. Executive will expend Executive’s best efforts on behalf of Company, and will abide by all lawful
decisions made by Company. Executive will also comply with all Company policies, including but not limited to Company’s Code of Business Conduct and Ethics, Insider Trading Policy, and Whistleblowing Procedures for Accounting and Auditing
Matters, as well as all applicable federal, state and local laws, regulations or ordinances. Executive will act in the best interest of Company at all times. Executive shall devote Executive’s full business time and efforts to the performance
of Executive’s assigned duties for Company, unless Executive notifies the CEO in advance of Executive’s intent to engage in other paid work and receives the CEO’s written consent to do so. Company agrees that Executive may continue
serving as a director for Blue Nile, Inc., provided that such position, either on the Effective Date or at any time during Executive’s employment with Company, does not: (a) create a direct conflict of interest with Company;
(b) interfere with Executive’s work responsibilities at Company; (c) violate Company’s Employee Nondisclosure and Assignment Agreement, which Executive is required to sign as a condition of employment, as referenced in section 8
below; and/or (d) impair Executive’s ability to meet all of his legal and ethical duties to Company. 
  
 2.3 Work Location. Executive’s principal place of work shall be located in San Diego, California, or such other location as
the parties may agree upon from time to time. 
  
 3.
Compensation. 
  
 3.1 Base Salary.
As compensation for Executive’s performance of Executive’s duties hereunder, Company shall pay to Executive an initial Base Salary of Three Hundred Thousand Dollars ($300,000) per year, which shall be guaranteed during the first year of
employment, payable in accordance with the normal payroll practices of Company, less required deductions for state and federal withholding tax, social security and all other employment taxes and payroll deductions. Notwithstanding the foregoing, in
the event Executive’s employment under this Agreement is terminated by either party at any time, for any reason whatsoever, Executive will earn the Base Salary prorated to the date of termination. 
  

 1 

 3.2 Sign-On Bonus. Company will pay Executive a one-time sign-on bonus of One
Hundred Fifty Thousand Dollars ($150,000), less all applicable taxes and withholdings, payable on the Effective Date of this Agreement (“Sign-On Bonus”). Executive agrees that if Executive fails to begin work for Company pursuant to this
Agreement, or voluntarily resigns Executive’s employment with Company within the first year of service or is terminated for Cause by Company within the first year of service, Executive will repay Company a prorated portion of the Sign-On Bonus
(based on months of completed service) within 30 days after Executive’s termination date. 
  
 3.3 Corporate Annual Bonus. In addition to the Base Salary, Executive will be eligible to earn an annual bonus of up to fifty
percent (50%) of Executive’s Base Salary based upon fiscal year-end corporate results, provided Executive remains employed by Company through and including the last day of the applicable fiscal year. The bonus, if any, will be paid
in the pay period after fiscal year-end corporate results are audited and approved by the Vice President of Finance. If Executive’s employment terminates either voluntary or involuntary for any reason whatsoever prior to the last day of any
fiscal year, Executive will not be eligible to earn a bonus for that fiscal year or any prorated amount thereof. 
  
 (a) The amount of the corporate annual bonus, if any, will be determined by Company in its sole and absolute discretion. Notwithstanding
the foregoing, Company agrees to pay Executive a guaranteed corporate annual bonus of 50% of his initial Base Salary for the fiscal year ending June 30, 2006, provided Executive remains employed through and including the last day of the
fiscal year. 
  
 (b) Except as expressly set
forth in subsection 3.3(a) above, Company reserves the right to alter or discontinue the corporate annual bonus on a prospective basis, at any time, at its discretion, on notice to Executive. 
  
 3.4 Stock Options. 
  
 (a) Subject to the Board of Directors’ approval,
Executive will be granted an incentive stock option to purchase 150,000 shares of Company’s Common Stock under Company’s 2003 Stock Option/Stock Issuance Plan (the “Plan”) and related option documents (including the Addendum to
Stock Option Agreement) at an exercise price equal to the fair market value of that stock on the date of the grant (the “Option”). The Option will be subject to the terms and conditions of the Plan and the standard stock option agreement
provided pursuant to the Plan, which Executive will be required to sign as a condition of receiving the Option. 
  
 (b) Executive may be granted additional incentive stock option(s) to purchase Company’s Common Stock or other awards or stock
available under the Plan, the amount of which (if any) shall be determined in the sole and absolute discretion of Company based on Company’s evaluation of Executive’s performance. Such option grants or other awards or stock, if any, will
be subject to the vesting schedules and other restrictions on exercise as set forth in the Plan and related option, award or stock documents. 
  
 3.5 Supplemental Executive Retirement Plan (SERP) and Deferred Compensation. As an executive level employee, Executive is eligible
to participate in Company’s SERP and Deferred Compensation plans, in accordance with the terms and conditions of those plans. Further details are available in the applicable plan documents. 
  
 3.6 Performance and Salary Review. The CEO will
periodically review Executive’s performance on no less than an annual basis. Except as otherwise provided in this 

  

 2 

 
Agreement, adjustments to Base Salary or other compensation, if any, may be made by Company, at any time, in its sole and absolute discretion. 
  
 4. Customary Fringe Benefits. Executive will be eligible for all
customary and usual fringe benefits generally available to executives of Company subject to the terms and conditions of Company’s benefit plan documents. Company reserves the right to change or eliminate the fringe benefits on a prospective
basis, at any time, effective upon notice to Executive. 
  
 5.
Business Expenses. Executive will be reimbursed for all reasonable, out-of-pocket business expenses incurred in the performance of Executive’s duties on behalf of Company. To obtain reimbursement, expenses must be submitted promptly with
appropriate supporting documentation in accordance with Company’s policies. 
  
 6. Termination of Executive’s Employment. 
  
 6.1 Termination for Cause by Company. Although Company anticipates a mutually rewarding employment relationship with Executive,
Company may terminate Executive’s employment immediately at any time for Cause. For purposes of this Agreement, “Cause” is defined as: (a) Executive’s material breach of this Agreement or Company’s Employee
Nondisclosure and Assignment Agreement, Code of Business Conduct and Ethics, Insider Trading Policy or Whistleblowing Procedures for Accounting and Auditing Matters; (b) Executive’s conviction or entry of a plea of nolo contendere for
fraud, misappropriation or embezzlement, or any felony or crime of moral turpitude; or (c) Executive’s death. In the event Executive’s employment is terminated in accordance with this subsection 6.1, Executive shall be entitled to
receive only the Base Salary then in effect, prorated to the date of termination. All other Company obligations to Executive pursuant to this Agreement, other than vested benefits and stock options, if any, will become automatically terminated and
completely extinguished. Executive will not be entitled to receive the Severance Payment described in subsection 6.2 below in the event Executive’s employment is terminated for Cause. 
  
 6.2 Termination Without Cause by Company/Severance.
Company may terminate the employment relationship at any time, without Cause (as defined above), on thirty (30) days’ advance written notice to Executive. In the event of Executive’s termination pursuant to this subsection 6.2,
Executive will receive the Base Salary then in effect, prorated to the date of termination, and a “Severance Package” described in subsection (a) below, provided Executive complies with all the conditions set forth in
subsection (b) below. All other Company obligations to Executive, other than vested benefits and stock options, if any, will be automatically terminated and completely extinguished: 
  
 (a) Severance Package. The Severance Package will consist of the following payment and benefits.

  
 (i) Severance Payment. Executive will
receive a Severance Payment equivalent to six (6) months’ of Executive’s Base Salary then in effect on the date of termination, less all appropriate federal and state income and employment taxes, payable in installments in accordance
with Company’s regular payroll cycle. Company reserves the right to unilaterally amend this Agreement at any time to structure the pay schedule and dates of the Severance Payment to comply with the Internal Revenue Code Section 409A

  
 (ii) Vesting Continuation. Company
will continue the vesting of the Option (as well as any other options to purchase shares of Company’s stock that have been granted to Executive as of Executive’s last day of employment) for a six-month period immediately following
Executive’s last day of employment; provided that Executive enters into, 

  

 3 

 
and remains engaged under, a standard consulting agreement of Company to extend Executive’s continuous “Service” (as such term is defined in
the Plan) for such six-month period with no additional pay. To the extent any vested options are not exercised within 90 days of the termination of Executive’s employment, Executive acknowledges that such options may not qualify for
“incentive stock option” treatment under applicable tax regulations. 
  
 (iii) Continuation of Group Health Benefits. Company will pay the premiums necessary to continue Executive’s and
Executive’s eligible dependents’ group health care coverage in effect on Executive’s last day of employment for a period of six (6) months following Executive’s last day of employment, under the applicable provisions of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), provided Executive and his eligible dependents elect to continue and remain eligible for these benefits under COBRA and do not obtain group health care coverage
through another employer during this period. 
  
 (b) Conditions to Receive Severance Package. Executive shall receive the Severance Package set forth above provided the following requirements are met: 
  
 (i) Executive complies with all surviving provisions of this Agreement as specified in subsection 11.8
below; and 
  
 (ii) Executive executes a
separation agreement, including a full, general release of all claims, known or unknown, that Executive may have against Company in a form provided by Company. 
  

6.3 Voluntary Resignation by Executive. Executive may voluntarily resign Executive’s position with Company, at any time, on
thirty (30) days’ advance written notice to Company. In the event of Executive’s resignation, Executive will be entitled to receive only the Base Salary for the thirty-day notice period. All other Company obligations to Executive
pursuant to this Agreement, other than vested benefits and stock options, if any, will become automatically terminated and completely extinguished. In addition, Executive will not be entitled to receive the Severance Payment described in subsection
6.2 above in the event of a voluntary resignation. 
  
 7. No
Conflict of Interest. During Executive’s employment with Company, Executive must not engage in any work, paid or unpaid, that creates an actual conflict of interest with Company. Such work shall include, but is not limited to, directly or
indirectly competing with Company in any way, or acting as an officer, director, employee, consultant, stockholder, volunteer, lender, or agent of any business enterprise of the same nature as, or which is in direct competition with, the business in
which Company is now engaged or in which Company becomes engaged during Executive’s employment with Company, as may be determined by the CEO in his sole discretion. If the CEO believes such a conflict exists during Executive’s employment
with Company, the CEO may ask Executive to choose to discontinue the other work or resign employment with Company. Company agrees that Executive may continue serving as a director for Blue Nile, Inc., provided that such position, either on
the Effective Date or at any time during Executive’s employment with Company, does not: (a) create a direct conflict of interest with Company; (b) interfere with Executive’s work responsibilities at Company; (c) violate
Company’s Employee Nondisclosure and Assignment Agreement, which Executive is required to sign as a condition of employment, as referenced in section 8 below; and/or (d) impair Executive’s ability to meet all of his legal and ethical
duties to Company. 
  
 8. Confidentiality and Proprietary
Rights. Executive agrees to read, sign and abide by Company’s Employee Nondisclosure and Assignment Agreement, which is provided with this Agreement and incorporated herein by reference. 
  

 4 

 9. Injunctive Relief. Executive acknowledges that Executive’s breach of the covenants
contained in sections 7 or 8 (collectively “Covenants”) would cause irreparable injury to Company and agrees that in the event of any such breach, Company shall be entitled to seek temporary, preliminary and permanent injunctive relief
without the necessity of proving actual damages or posting any bond or other security. 
  
 10. Agreement to Arbitrate. Executive agrees to read, sign and abide by Company’s Employment Arbitration Agreement, which is provided with this Agreement and incorporated herein by reference. 

 
 11. General Provisions. 
  
 11.1 Successors and Assigns. The rights and
obligations of Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Company. Executive shall not be entitled to assign any of Executive’s rights or obligations under this Agreement.

  
 11.2 Waiver. Either party’s
failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Agreement. 
  
 11.3 Attorneys’ Fees. Each side will bear its
own attorneys’ fees in any dispute unless a statutory section at issue, if any, authorizes the award of attorneys’ fees to the prevailing party. 
  
 11.4 Severability. In the event any provision of this Agreement is found to be unenforceable by an arbitrator or court of competent
jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by
law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby.

  
 11.5 Interpretation; Construction. The
headings set forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement. This Agreement has been drafted by legal counsel representing Company, but Executive has participated in the negotiation of its
terms. Furthermore, Executive acknowledges that Executive has had an opportunity to review and revise the Agreement and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction to the effect that any ambiguities
are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 
  
 11.6 Governing Law. This Agreement will be governed by and construed in accordance with the laws of the United States and the State
of California. Each party consents to the jurisdiction and venue of the state or federal courts in San Diego, California, if applicable, in any action, suit, or proceeding arising out of or relating to this Agreement. 
  
 11.7 Notices. Any notice required or permitted by
this Agreement shall be in writing and shall be delivered as follows with notice deemed given as indicated: (a) by personal delivery when delivered personally; (b) by overnight courier upon written verification of receipt; (c ) by telecopy
or facsimile transmission upon acknowledgment of receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of 

  

 5 

 
receipt. Notice shall be sent to the addresses set forth below, or such other address as either party may specify in writing. 
  
 11.8 Survival. Sections 6.2 (Termination Without
Cause by Company/Severance), 7 (“No Conflict of Interest”), 8 (“Confidentiality and Proprietary Rights”), 9 (“Injunctive Relief”), 10 (“Agreement to Arbitrate”), 11 (“General Provisions”) and 12
(“Entire Agreement”) of this Agreement shall survive Executive’s employment by Company. 
  
 12. Entire Agreement. This Agreement, including Company’s Employee Nondisclosure and Assignment Agreement and Employment Arbitration Agreement
incorporated herein by reference and Company’s 2003 Stock Option/Stock Issuance Plan and related option documents described in this Agreement, constitutes the entire agreement between the parties relating to this subject matter and supersedes
all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral. This Agreement may be amended or modified only with the written consent of Executive and CEO of Company. No oral waiver, amendment or
modification will be effective under any circumstances whatsoever. 
  
 THE PARTIES
TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW. 
  

							
	 	 	 	 	ERIC CARLBORG
			
	Dated: 9-6-05	 	 	 	/s/ W. Eric Carlborg
	 	 	 	 	 610 Pullman Road
 Hillsborough, CA
94010

	 	 	 	 	 	 	 
	 	 	 	 	PROVIDE COMMERCE, INC.
				
	Dated: 9-6-05	 	 	 	By:	 	/s/ Penny Handscomb
	 	 	 	 	 	 	 Penny Handscomb
 VP Human Resources &
Training
  
 5005 Wateridge Vista Drive, Suite 200
 San Diego, CA 92121

  

 6 

 EXHIBIT A 
  

Job Description – Chief Financial Offer 
  
 General Duties and Responsibilities: 
  

	 	•	 	Represent the company to the financial community, acting as the key liaison between the company and the analyst community while maintaining successful relationships with external
auditors, lawyers, investors and vendors 

  

	 	•	 	Serve as key business partner and contributor to growth strategies, tactics and long-range planning, ensuring that current revenue-generating strategies create enterprise value

  

	 	•	 	Advise senior management and the Board of Directors on the financial implications of business activities; make recommendations to strategically enhance financial performance;
collaboratively develop operating policies and procedures and improvement programs for the attainment of corporate objectives 

  

	 	•	 	Development and direction for all accounting and financial systems and controls; ensure the efficient day to day operation of the Accounting and Finance groups through the
development and management of all internal and external financial reports, forecasts, budgets, long range plans, etc. 

  

	 	•	 	Contribute to aggressive management of current margins in order to enhance profitability 

  

	 	•	 	And any other duties which may be assigned from time to time 

  
 Qualifications: 
  

	 	•	 	5 years experience at the CFO level in a publicly-held company 

  

	 	•	 	Proven experience and understanding of how value is created in equity markets 

  

	 	•	 	Proven ability to understand and communicate effectively with analysts and institutional investors 

  

	 	•	 	CFA or MBA, CPA is a definite asset 

  

	 	•	 	Perceived by the executive management team and Board of Directors as a true business partner 

  

	 	•	 	High-energy self-starter with strong written and verbal communication skills 

  

Key Management Skills:  
  

	 	•	 	Drive for Results 

  

	 	•	 	Strategic Agility 

  

	 	•	 	Communication / Presentation Skills 

  

	 	•	 	Command Skills 

  

	 	•	 	Negotiation Skills 

  

	 	•	 	Team Building and Leadership (especially, virtual teams) 

  

	 	•	 	Organization Agility 

  

	 	•	 	Intellectual Horsepower 

  

 7

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