Document:

RJF - Amended 2005 Restricted Stock Plan

    EXHIBIT
      10.1

    

    

    FIRST
      AMENDMENT

    TO

    2005
      RAYMOND JAMES FINANCIAL, INC. RESTRICTED STOCK PLAN

    

    This
      Amendment (the “Amendment”) to the 2005 Raymond James Financial, Inc. Restricted
      Stock Plan (the “Plan”) is made by Raymond James Financial, Inc., a Florida
      corporation (the “Company”) on this 16th day February, 2006 and effective as of
      Feb 16, 2006.

    

    RECITALS

    

    A. On
      or
      about November 30, 2004, the board of directors of the Company adopted the
      Plan
      and on or about February 17, 2005, the shareholders of the Company approved
      the
      Plan.

    

    B. The
      Company desires to amend certain provisions of the Plan in order to permit
      the
      award of restricted stock units under the Plan.

    

    C. Pursuant
      to Section 8 of the Plan, the Compensation Committee of the board of directors
      of the Company has the power to amend or terminate the Plan, subject to
      shareholder approval where required by federal or state law, provided that
      any
      such amendment or termination shall not adversely affect any right of any
      participant under the Plan with respect to any outstanding restricted stock
      awards granted under the Plan without the written consent of the participant
      holding the award.

    

    D. The
      Compensation Committee of the board of directors of the Company has concluded
      that neither federal nor state law requires shareholder approval to effectuate
      the desired amendments. 

    

    E.  Capitalized
      terms used but not defined in this Amendment shall have the meaning given to
      such terms in the Plan.

    

    NOW
      THEREFORE, the Plan is hereby amended as follows:

    

    AGREEMENT

    

    Section
      1. Section
      2(g) containing the definition of Participant shall be amended in its entirety
      to read as follows:

    

    “Participant”
means
      an Eligible Person selected or ratified for selection by the Committee or a
      senior executive officer of the Company, pursuant to the Committee’s authority
      or the officer’s authority, as the case may be, in Section
      6,
      to
      receive an Award of Restricted Stock or of an Award of a Restricted Stock Unit.
      

    

    Section
      2. Section
      2(h) containing the definition of Restricted Period shall be amended in its
      entirety to read as follows:

    

    “Restricted
      Period”
means
      the period during which the restrictions on the Restricted Stock or the
      Restricted Stock Unit are in effect.

    

    Section
      3. A
      new
      Section 2(j) which defines the term “Restricted Stock Unit” shall added to read
      as follows and the existing Sections 2(j) through 2(m) shall be relettered
      as
      Sections 2(k) through 2(n), respectively:

    

    “Restricted
      Stock Unit”
means
      an award of the right to receive Stock or cash or a combination thereof upon
      settlement that is subject to the restrictions set forth in Section
      5A.
      

    

    Section
      4. Relettered
      Section 2(k) which defines the term “Retirement” shall be amended to read as
      follows:

    

    “Retirement”
means,
      unless otherwise defined in the documented grant of the specific award to the
      Participant, a Participant’s separation of service from the Company or any
      Subsidiary after attainment of age 65. 

    

    Section
      5. Section
      4
      shall be amended in its entirety to read as follows:

    

    

    SECTION
      4

    AMOUNT
      AND FORM OF AWARDS

    

    (a) The
      Committee, in its sole discretion, shall determine and grant the awards of
      Restricted Stock and Restricted Stock Units to be granted under the Plan,
      provided, however, that awards under this Plan may be determined and granted
      by
      senior executive officers of the Company, based on recommendations of various
      departments or Subsidiaries of the Company, in connection with the initial
      association of an individual who upon association will qualify as an Eligible
      Person. A Participant will receive such awards in Restricted Stock or Restricted
      Stock Units, as designated in the grant.

    

    	(b)  	
            The
              maximum number of shares of Stock which may be issued under the Plan
              as
              Restricted Stock or which may be covered by Restricted Stock Units,
              when
              aggregated, shall be not more than 1,500,000 shares of Stock, subject
              to
              adjustment as provided in Section 7, and, with respect to any Restricted
              Stock, such shares may be authorized but unissued shares, or previously
              issued shares reacquired by the Company, or both. In the event Restricted
              Stock or a Restricted Stock Unit is forfeited prior to the end of the
              Restricted Period, the shares of Stock so forfeited or the number of
              shares to which the forfeited Restricted Stock Unit relates, shall
              immediately become available for future
              awards.

          

    

    Section
      6. Section
      5(a) shall be amended by deleting the second sentence in its entirety and
      substituting therefor the following sentence:

    

    For
      purposes of this Plan, the
      fair
      market value
      of Stock
      for an award will be the Stock’s closing price on the New York Stock Exchange or
      the last sale price on any other national securities exchange registered under
      the Securities and Exchange Act of 1934, as amended, upon which the Stock is
      then listed on such date, or if the Stock was not traded on such date, on the
      next preceding day on which sales of shares of the Stock were reported, all
      as
      determined by the Committee.

    

    Section
      7. The
      first
      subsection (ii) of Section 5(f) shall be amended by deleting the first sentence
      in its entirety and substituting therefor the following sentence.

    

    Upon
      the
      Retirement of a Participant, and after satisfaction of a non-compete provision
      as set forth below, any unvested Restricted Stock Unit shall vest on a pro-rated
      basis (with
      the
      pro-ration being determined by comparing completed years of service since the
      date of initial award to the vesting schedule or by such other pro-ration method
      as may otherwise be set forth in the underlying contract with the Participant
      or
      in the documented grant of the specific award to the Participant).

    

    Section
      8. The
      first
      subsection (ii) of Section 5(f) shall be amended by substituting the term
“Subsidiary” for the term “Related Employer” in Sections 5(f)(ii)(2) and
      5(f)(ii)(3). 

    

    Section
      9. A
      new
      Section 5A shall be added to the Plan immediately following Section 5 to read
      as
      follows:

    

    SECTION
      5A

    RESTRICTED
      STOCK UNITS

    

    (a) The
      number of Restricted Stock Units awarded to a Participant under the Plan will
      be
      determined in accordance with Section 4(a). For purposes of this Plan,
the
      fair
      market value
      of Stock
      for an award will be the Stock’s closing price on the New York Stock Exchange or
      the last sale price on any other national securities exchange registered under
      the Securities and Exchange Act of 1934, as amended, upon which the Stock is
      then listed on such date, or if the Stock was not traded on such date, on the
      next preceding day on which sales of shares of the Stock were reported, all
      as
      determined by the Committee.
      In
      the
      event the Committee provides for alternative methods for grants of awards,
      the
      Committee, in its sole discretion, may provide for alternative methods of
      determining the fair market value of Stock for such awards, and may also provide
      for alternative forfeiture provisions, so long as the alternative methods or
      provisions do not (i) materially increase the benefits, (ii) materially increase
      the number of Restricted Stock Units issued or (iii) materially modify the
      eligibility requirements applicable to Section 16(a) Persons.

    

    (b) A
      "book
      entry" (i.e., a computerized or manual entry) shall be made in the records
      of
      the Company to evidence an award of Restricted Stock Units to a Participant,
      but
      no “book entry” shall be made in the stock records of the Company at the time of
      an award of a Restricted Stock Unit. All Restricted Stock Units shall be
      recorded in an individual account for each Participant until the Restricted
      Period (as defined in
      Section 5A(c))
      has
      expired. Such Company records shall, absent manifest error, be binding on the
      Participants.

    

    (c) The
      Restricted Stock Units awarded pursuant to this Section 5A shall be subject
      to
      the restrictions and conditions set forth in the underlying contracts with
      the
      Participants and/or as set forth in the documented grant of any award pursuant
      to this Plan to the Participants.

    

    (d) With
      respect to a Restricted Stock Unit, no certificate for shares of stock shall
      be
      issued at the time the grant is made (nor shall any “book entry” be made in the
      stock records of the Company) and the Participant shall have no right to or
      interest in shares of stock of the Company as a result of the grant of
      Restricted Stock Units. 

    

    (e) Dividend
      equivalents may be credited in respect of Restricted Stock Units, as the
      Committee deems appropriate. Such dividend equivalents may be paid in cash
      or
      converted into additional Restricted Stock Units by dividing (1) the aggregate
      amount or value of the dividends paid with respect to that number of shares
      of
      Stock equal to the number of Restricted Stock Units then credited by (2) the
      fair market value per share of Stock on the payment date for such dividend.
      The
      additional Restricted Stock Units credited by reason of such dividend
      equivalents will be subject to all of the terms and conditions of the underlying
      Restricted Stock Award to which they relate.

    

    (f) Any
      shares of Stock that may be issued in satisfaction of a Restricted Stock Unit
      delivered under the Plan shall be delivered to the Participant in accordance
      with
      Section 9(a)
      promptly
      after, and only after, the Restricted Period shall expire (or such earlier
      time
      as the restrictions may lapse in accordance with
      Section 5A(g))
      without
      forfeiture in respect of such Restricted Stock Unit.

    

    (g) Subject
      to the provisions of
      Section 5A(c),
      the
      following provisions shall apply to a Participant's Restricted Stock Unit prior
      to the end of the Restricted Period (including extensions):

    

    (i) Upon
      the
      death or Disability of a Participant, the restrictions on his or her Restricted
      Stock Unit shall immediately lapse. Upon the death of a Participant, such
      Participant's Restricted Stock Unit shall transfer to the Participant's
      beneficiary as such beneficiary is designated on a form provided by the Company,
      or if no beneficiary is so designated, by will or the laws of descent and
      distribution.

    

    (ii) Upon
      the
      Retirement of a Participant, and after satisfaction of a non-compete provision
      as set forth below, any unvested Restricted Stock Unit shall vest on a pro-rated
      basis (with
      the
      pro-ration being determined by comparing completed years of service since the
      date of initial award to the vesting schedule or by such other pro-ration method
      as may otherwise be set forth in the underlying contract with the Participant
      or
      in the documented grant of the specific award to the Participant)..
      (A) For
      purposes of this subparagraph (g)(ii), a Participant shall be deemed to have
      not
      satisfied the non-compete provision if the Participant, within one year after
      the date of retirement:

    

    
      	 	
              (1)

            	
              discloses
                the list of the Company's or a Subsidiary's customers or any part
                thereof
                to any person, firm, corporation, association, or other entity for
                any
                reason or purpose whatsoever; or

            

    

    

    
      	 	
              (2)

            	
              discloses
                to any person, firm, corporation, association, or other entity any
                information regarding the Company's or a Subsidiary's general business
                practices or procedures, methods of sale, list of products, personnel
                information and any other valuable confidential business or professional
                information unique to the Company's or a Subsidiary’s business;
                or

            

    

    

    
      	 	
              (3)

            	
              owns
                more than five per cent (5%) of, manages, operates, controls, is
                employed
                by, acts as an agent for, participates in or is connected in any
                manner
                with the ownership, management, operation or control of any business
                which
                is engaged in businesses which are competitive to the business of
                the
                Company or a Subsidiary ; and are located within a radius of 100
                miles of
                any location where participant was employed or which was under the
                supervision, management or control of the participant.;
                or

            

    

    

    
      	 	
              (4)

            	
              solicits
                or calls either for himself/herself or any other person or firm,
                any of
                the customers of the Company or a Subsidiary on whom the Participant
                called, with whom the Participant became acquainted, or of whom the
                Participant learned of during his employment;
                or

            

    

    

    	(5)  	
            solicits
              any of the employees or agents of the Company or a Subsidiary to terminate
              their employment or relationship with the Company or a
              Subsidiary.

          

    

    (iii) It
      is the
      intention of the Company and its Subsidiaries that this paragraph (g) be given
      the broadest protection allowed by law with regard to the restrictions herein
      contained. Each restriction set forth in this paragraph (g) shall be construed
      as a condition separate and apart from any other restriction or condition.
      To
      the extent that any restriction contained in this paragraph (g) is determined
      by
      any court of competent jurisdiction to be unenforceable by reason of it being
      extended for too great a period of time, or as encompassing too large a
      geographic area, or over too great a range of activity, or any combination
      of
      these elements, then such restriction shall be interpreted to extend only over
      the maximum period of time, geographic area, and range of activities which
      said
      court deems reasonable and enforceable.

    

    (iv) If
      a
      Participant voluntarily terminates employment, or if a Participant is
      involuntarily terminated for Cause, such Participant shall forfeit his or her
      Restricted Stock Unit for which the Restricted Period has not expired on the
      date that the Participant voluntarily terminates employment or is involuntarily
      terminated for Cause.

    

    (h) The
      Committee shall have the power and authority, directly or indirectly, to
      establish or to cause to be established a trust for purpose of purchasing Stock
      on the open market, holding such Stock and using such Stock to satisfy the
      Company’s obligations under grants of Restricted Stock Units. If the trust is
      established to satisfy the Company’s obligations with respect to grants of
      Restricted Stock Units to Participants resident in Canada, such trust may be
      structured to qualify as an “employee benefit plan” within the meaning assigned
      by the Income
      Tax Act
      (Canada). 

    

    Section
      10. Section
      6
      shall be amended in its entirety to read as follows:

    

    

    SECTION
      6

    ADMINISTRATION

    

    The
      Plan
      shall be administered by the Committee.

    

    The
      Committee (and senior executive officers in the case of initial association
      grants) shall have the power and authority to grant Restricted Stock and
      Restricted Stock Units to Participants, pursuant to the terms of the
      Plan.

    

    In
      particular, the Committee (and senior executive officers in the case of initial
      association grants) shall have the authority:

    

    (i) to
      select
      or ratify the selection of Eligible Persons;

    

    (ii) to
      determine whether and to what extent Restricted Stock or a Restricted Stock
      Unit
      is to be granted to Participants hereunder or ratify the grant
      thereof;

    

    (iii) to
      determine the number of shares of Stock to be covered by such award granted
      hereunder or ratify the grant thereof;

    

    (iv) to
      determine the terms and conditions, not inconsistent with the terms of the
      Plan,
      of any award granted hereunder (including, but not limited to, the Restricted
      Period and the other conditions of full vesting of the Restricted Stock or
      the
      Restricted Stock Units) or to ratify the grant thereof; and

    

    (v)  to
      determine or ratify the determination of the terms and conditions, not
      inconsistent with the terms of the Plan, which shall govern all documentation
      evidencing the Restricted Stock or the Restricted Stock Unit.

    

    In
      the
      event of an initial association grant of Restricted Stock or Restricted Stock
      Units effectuated by action of a senior executive officer, the terms and
      conditions of such grant shall be reported to the Committee at the Committee’s
      next meeting for informational purposes only, it being understood that such
      report shall not in any way be a condition to the effectiveness of the
      grant.

    

    The
      Committee shall have the authority to adopt, alter and repeal such
      administrative rules, guidelines and practices governing the Plan as it shall,
      from time to time, deem advisable; to interpret the terms and provisions of
      the
      Plan and any award issued under the Plan; and to otherwise supervise the
      administration of the Plan. All decisions made by the Committee pursuant to
      the
      provisions of the Plan shall be final and binding on all persons, including
      the
      Company, its Subsidiaries and the Participants.

    

    The
      Committee may delegate the administrative details and management of the Plan
      to
      members of the Company's management and staff. No such delegation shall affect
      the Committee’s right to make final decisions with respect to any matter arising
      under the Plan.

    

    

    Section
      11. Section
      7
      shall be amended in its entirety to read as follows:

    

    

    SECTION
      7

    ADJUSTMENTS
      UPON A CHANGE IN COMMON STOCK

    

    In
      the
      event of any change in the outstanding Stock of the Company by reason of any
      stock split, stock dividend, recapitalization, merger, consolidation,
      reorganization, combination or exchange of shares or other similar event that
      may equitably require an adjustment in the number or kind of shares that may
      be
      issued under the Plan or covered by an award under the Plan pursuant
      to
      Section 4(b),
      such
      adjustment shall be made by the Committee in accordance with its sole discretion
      and shall be conclusive and binding for all purposes of the Plan.

    

    Section
      12. Section
      8
      shall be amended in its entirety to read as follows:

    

    

    SECTION
      8

    AMENDMENT
      AND TERMINATION

    

    The
      Plan
      may be amended from time to time or terminated at any time and from time to
      time
      by the Committee, subject to shareholder approval where required by federal
      or
      state law. Neither an amendment to the Plan nor the termination of the Plan
      shall adversely affect any right of any Participant with respect to any
      Restricted Stock or Restricted Stock Unit theretofore granted without such
      Participant's written consent.

    

    Section
      13. Section
      9(a) shall be amended in its entirety to read as follows:

    

    (a) All
      shares of Restricted Stock and any shares of Stock that may be issued in
      satisfaction of a Restricted Stock Unit delivered under the Plan after the
      Restricted Period has expired shall be distributed in accordance with the
      instructions of each Participant. Such shares of Stock shall be subject to
      such
      stop transfer orders and other restrictions as the Committee may deem advisable
      under the rules, regulations, and other requirements of the Securities and
      Exchange Commission, any stock exchange upon which the Stock is then listed,
      and
      any applicable federal or state securities law.

    

    Section
      14. Section
      9(e) shall be amended in its entirety to read as follows:

    

    (e) The
      Company and its Subsidiaries shall have the right to deduct from any payment
      made under the Plan any federal, state, provincial or local income or other
      taxes required by law to be withheld with respect to such payment. It shall
      be a
      condition to the obligation of the Company to issue shares of Stock upon the
      lapse of restrictions on Restricted Stock and a condition to the issuance of
      any
      shares of Stock to satisfy a Restricted Stock Unit upon the lapse of
      restrictions on the Restricted Stock Unit that the Participant (i) pay to the
      Company, upon its demand, such amount as may be requested by the Company for
      the
      purpose of satisfying any liability to withhold federal, state, provincial
      or
      local income or other taxes and (ii) provide the Company with a copy of the
      election, if required, under Section 83 of the Code, or any amendment thereto
      (the "Section 83 Election") as filed with the Internal Revenue Service. If
      the
      amount requested is not paid and the copy of the Section 83 Election, if
      required, is not provided, the Company may refuse to issue shares of Stock
      until
      such time as the Participant so complies. Unless the Committee shall in its
      sole
      discretion determine otherwise, payment for taxes required to be withheld may
      be
      made in whole or in part by an election by a Participant, in accordance with
      rules adopted by the Committee from time to time, to have the Company withhold
      shares of Stock otherwise issuable pursuant to the Plan having a fair market
      value equal to such tax liability, to be determined in such reasonable manner
      as
      may be provided for from time to time by the Committee or as may be required
      in
      order to comply with or to conform to the requirements of any applicable or
      relevant laws or regulations.

    

    Section
      15. A
      new
      Section 9(g) shall be added to the Plan to read as follows:

    

    (g) This
      Plan
      is intended in all respects to comply with the provisions of Section 409A of
      the
      Code and the Company shall interpret and administer the Plan in a manner
      consistent with Section 409A. In accordance with Prop. Reg.
§ 1.409A-3(h)(2)(vi) (or any subsequent corresponding provision of law),
      should there be a final determination that this Plan fails to meet the
      requirements of Section 409A and the regulations thereunder with respect to
      any
      Participant, the Company may distribute to the Participant an amount not to
      exceed the amount required to be included in income as a result of the failure
      to comply with the requirements of Section 409A and the
      regulations.

    

     

    IN
      WITNESS WHEREOF, this First Amendment to the 2005 Raymond James Financial,
      Inc.
      Restricted Stock Plan is hereby duly executed and delivered by the Company
      on
      the date first above written.

    

    THE
      COMPANY:

    

    RAYMOND
      JAMES FINANCIAL, INC.,

    a
      Florida
      corporation

     

    

    
      First
        Amaendment #4
By:
      /s/
      Jeffrey P. Julien

    Jeffrey
      P. Julien

    Senior
      Vice President - Finance

    And
      Chief
      Financial Officer<PAGE>

                                                                    EXHIBIT 10.1

                       SEPARATION AND CONSULTING AGREEMENT

      This SEPARATION AND CONSULTING AGREEMENT is entered into as of the 15th
day of February, 2006, by and between CELEBRATE EXPRESS, INC., a Washington
corporation (the "Company"), and MICHAEL K. JEWELL ("Jewell"), with respect to
the following facts:

      A. Jewell has been the President and Chief Executive Officer of the
Company.

      B. The parties each desire to, among other things, confirm Jewell'
resignation as an officer of the Company and any subsidiaries and affiliates of
the Company and, as applicable, as trustee of any of the Company's employee
benefit plans and provide for Jewell to render certain consulting services to
the Company, all on the terms and conditions set forth below.

      ACCORDINGLY, in consideration of the foregoing premises, and the mutual
covenants contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which hereby are acknowledged, Jewell and the Company
hereby agree as follows:

      1. Resignation. Concurrently with the execution and delivery of this
Agreement, Jewell has delivered a resignation to the Board of Directors of the
Company, in the form attached to this Agreement as Exhibit A.

      2. Consulting Services.

      (a) The Company hereby retains Jewell as a consultant, and Jewell hereby
accepts such appointment, on the terms and conditions set forth below, to
perform such services as are required hereunder from time to time during the
period commencing on February 10, 2006 and ending on August 30, 2006 (the
"Consulting Period").

      (b) Jewell will render such services to the Company, and will perform such
duties and acts, in order to assure the smooth transition of his
responsibilities and/or as reasonably may be requested by the then acting Chief
Executive Officer or Board of Directors, or any committee thereof. Jewell will
devote such time, ability and attention to the Company's business as may be
necessary or advisable to discharge his duties hereunder in a professional and
businesslike manner.

      (c) Jewell will make himself available to perform such services on a
full-time basis in February and March 2006, up to fifteen (15) days in April
2006, up to days ten (10) days a month in May, and up to five (5) days a month
June, July and August of 2006; provided, however, that additional days may be
requested by the Company and agreed to by Jewell. The Company shall pay Jewell
at the rate of $1,500 per day (or portion thereof based on a 10 hour day) for
the services performed during the term of this Agreement. Subject to prior
approval by the Company, the Company will reimburse Jewell for reasonable and
necessary out-of-pocket costs incurred while performing the services.

<PAGE>

      (d) Jewell will be an independent contractor of the Company. Nothing in
this Agreement will be construed to give Jewell any rights as an employee,
agent, partner or joint venturer of the Company or to entitle Jewell to control
in any manner the business of the Company or to incur any debt, liability or
obligation on behalf of the Company. Jewell will keep complete written records
of the services provided and shall invoice the Company by the 10th day of the
following month for the services performed in the previous month. Invoices shall
be submitted to the attention of the Vice President, Finance of the Company.
Jewell agrees that he will be responsible for the payment of all taxes and
withholding on any amounts paid to Jewell under this Agreement.

      3. Options. On March 1, 2006, Jewell will receive the standard
"Non-Employee Director" nonstatutory stock option grant to purchase 13, 246
shares of Common Stock of the Company in accordance with the Company's 2004
Equity Incentive Plan.

      4. Return of Property. Jewell hereby represents and warrants to the
Company that as of February 28, 2006 he will have returned to the Company all
property of the Company and all property related to the Company's business, in
the custody or under the control of Jewell, in whatever form, including, but not
limited to, all equipment (including computers), security access codes,
proprietary information, documents, books, records, reports, memoranda,
contracts, lists, computer disks (or other computer-generated files or data),
and copies thereof, created on any medium.

      5. Release.

      (a) Except as expressly set forth in this Agreement, each party hereby
fully, forever and unconditionally releases, exonerates, waives, relinquishes,
discharges, acquits, relieves and covenants not to sue or charge the other and
its agents, employees, representatives, attorneys, stockholders, officers,
directors, successors and assigns (collectively, "all related persons"), and all
affiliated, parent and subsidiary corporations, and each of them, and all
related persons connected therewith, from any and all rights, claims, demands,
debts, obligations, liabilities, promises, acts, agreements, costs, expenses
(including, but not limited to, attorneys' fees and costs), damages, disputes,
controversies, actions and causes of action (collectively, "claims") through the
date of this Agreement, of whatever kind or nature, in law or equity, potential
or actual, including but not limited to those based on, arising out of or in any
way connected with or related to (i) the employment of Jewell by the Company, or
the termination of such employment, (ii) Jewell' right to purchase, or actual
purchase, of securities of the Company, (iii) the breach by Jewell or the
Company of any provision of the Company's employee handbook, personnel policies
or any oral or written representations or statements made by Jewell or by
officers, directors, employees or agents of the Company, (iv) the breach by
Jewell or the Company of any state or federal law regulating wages, hours,
compensation or employment, and (v) any claim for misrepresentation, wrongful
termination or intentional infliction of emotional distress in connection with
any of the foregoing matters. Notwithstanding the foregoing or any other
provision of this Agreement, the releases provided for in this Section 4 do not
extend to any obligations arising under this Agreement or, except as provided in
Section 5(a)(ii), any claims related to ownership of securities of the Company.

                                  Page 2 of 9
<PAGE>

      (b) Except as expressly set forth in this Agreement, each party hereby
acknowledges that except for the express provisions of this Agreement, no
statement, representation, promise or inducement has been made by the other
party in connection with this Agreement, and each party specifically
acknowledges that he or it has not relied upon any statement, representation,
promise or inducement of the other party in executing this Agreement that is not
expressly set forth in this Agreement. Each party hereby represents and warrants
to the other party that he or it holds all rights necessary to release all
claims being released under this Agreement by he or it, without obtaining the
approval or consent of any other person or entity, and he or it has not
transferred or otherwise assigned any of the claims being released under this
Agreement by he or it to any other person or entity.

      (c) The parties acknowledge and agree that they are familiar with, and
have been advised by legal counsel with respect to, the provisions of Section
1542 of the Civil Code of the State of California, which provides as follows:

      A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT
      KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE
      RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
      SETTLEMENT WITH THE DEBTOR.

      Each party hereby expressly waives and releases any right or benefit which
he or it has or may have under Section 1542 of the Civil Code of the State of
California, as well as under the provisions of any and all comparable or similar
statutes, codes, laws, or regulations of any and all states of the United States
and of the United States, to the fullest extent that such rights and benefits
may be waived. Each party acknowledges that he or it may hereafter discover
claims presently unknown or unsuspected, or facts in addition to or different
from those which he or it now knows or believes to be true, with respect to the
matters released herein. Nevertheless, it is the intention of each party through
this Agreement, fully, finally and forever to settle and release all such
matters, and all claims relative thereto, which do now exist, may exist or
heretofore have existed in connection with such matters. In furtherance of such
intention, the release herein given will be and remain in effect as a full and
complete release of such matters notwithstanding the discovery or existence of
any such additional different claims or facts relative thereto.

      (d) Jewell hereby represents, warrants and acknowledges to the Company
that (i) he has not suffered nor aggravated any known on-the-job injuries for
which he has not already filed a claim, and (ii) assuming receipt of full
payment for wages for the period from the date of this agreement, and for
vacation accrued, thru February 28, 2006, he has been fully compensated by the
Company for all amounts owed to him for wages, salaries, bonuses, health
benefits, vacation, expenses, and any other form of compensation and benefits.

      (e) The Company hereby confirms its obligation to indemnify Jewell on the
terms set forth in that certain Indemnification Agreement between Jewell and the
Company, and nothing in Agreement is intended to limit Jewell' rights to
indemnification as provided therein. In addition, Jewell will be provided
indemnification under the Company's articles of

                                  Page 3 of 9
<PAGE>

incorporation and bylaws and applicable law, and coverage under director and
officer liability insurance, no less favorable than is provided to other present
and former officers and directors of the Company.

      6. Prohibition Against Disparagement. The Company will not disparage,
defame or denigrate the reputation of, or cause or encourage any other person to
so disparage, defame or denigrate the reputation of, Jewell; and Jewell will not
disparage, defame or denigrate the reputation of, or cause or encourage any
other person to so disparage, defame or denigrate the reputation of, the
Company, any of its subsidiaries or affiliates, or any of their respective
officers, directors or employees. This Section 6 will not, however, prevent a
party from truthfully testifying as required by compulsion of law.

      7. Restrictive Covenants.

      (a) Jewell hereby agrees that from the date hereof to and including
February 28, 2007, he will not, directly or indirectly, , on behalf of himself
or any other person or entity, engage in any employment or business activity
which is competitive with the business, products or services of the Company, or
which were under development, as of the date of this Agreement.

      (b) Jewell hereby further agrees that from the date hereof to and
including February 28, 2007, he will not, directly or indirectly, on behalf of
himself or any other person or entity, (i) solicit, accept or take away any
customer of the Company with respect to any business, products or services that
are competitive with the business, products or services of the Company, or which
were under development, as of the date of this Agreement, (ii) induce or
encourage any person or entity that is a licensor, vendor to or customer of the
Company to cease doing business with the Company, or (iii) otherwise interfere
with the relationships between the Company and any of its licensors, vendors or
customers.

      (c) Jewell hereby further agrees that from the date hereof to and
including February 28, 2007, he will not, directly or indirectly, on behalf of
himself or any other person or entity, (i) solicit for employment or
consultation services any person who is at the time of solicitation employed by
the Company, or (ii) induce, or attempt to induce, any person who is at the time
of inducement employed by the Company to terminate his or her employment with
the Company.

      8. Confidential Information.

      (a) As used in this Section 8, the term "Confidential Information" means
any and all trade secrets or other confidential or proprietary information of
the Company, or other information of any kind, nature or description concerning
any matters affecting or relating to the Company that derives economic value,
actual or potential, from not being generally known to the public or to other
persons who can obtain economic value from its disclosure or use. Confidential
Information includes without limitation any such information relating to the
financial condition, results of operations, business, customers, properties,
assets, liabilities or future prospects of the Company.

                                  Page 4 of 9
<PAGE>

      (b) Jewell hereby acknowledges and agrees that the Confidential
Information is the sole property of the Company. Jewell hereby agrees that he
will keep confidential and will not directly or indirectly divulge to anyone or
use or otherwise appropriate for his own benefit, or for the benefit of any
other person or entity, any Confidential Information.

      9. Inventions and Intellectual Property.

      (a) As used in this Section 9, the term "Inventions" means any and all
ideas, inventions, techniques, modifications, processes, or improvements
(whether patentable or not), any trademarks, trade names or industrial designs
(whether registerable or not), and any works of authorship (whether or not
copyright protection may be obtained for them) created, conceived, or developed
by Jewell to date, either solely or in conjunction with others, that relate in
any way to, or are useful in any manner in connection with, the Company's
business as it was conducted on or prior to the date of this Agreement. As used
in this Section 9, the terms "Intellectual Property Right" and "Intellectual
Property Rights" mean (i) all rights under all copyright laws of the United
States and all other countries for the full terms thereof (and all rights
accruing by virtue of copyright treaties and conventions), including, but not
limited to, all renewals, extensions, reversions or restorations of copyrights
now or hereafter provided by law and all rights to make applications for and
obtain copyright registrations therefor and recordations thereof; (ii) all
rights to and under new and useful inventions, discoveries, designs, technology
and art and all other patentable subject matter, including, but not limited to,
all improvements thereof and all know-how related thereto, all applications for
and the rights to make applications for patents in the United States and all
other countries, and all reissues, extensions, renewals, divisional applications
and continuations (including continuations-in-part and other continuing
applications) thereof, for the full term thereof; (iii) all trade secrets; (iv)
all trademarks, service marks and Internet domain names and the like throughout
the world; and (v) all other intellectual and industrial property and
proprietary rights throughout the world not otherwise included in the foregoing,
including, without limitation, all techniques, methodologies and concepts and
trade dress.

            NOTICE REQUIRED BY REVISED CODE OF WASHINGTON 49.44.140:

      Any assignment of Inventions required by this Agreement does not apply to
an Invention for which no equipment, supplies, facility or trade secret
information of the Company was used and which was developed entirely on the
employee's own time, unless (a) the Invention relates (i) directly to the
business of the Company or (ii) to the Company's actual or demonstrably
anticipated research or development or (b) the Invention results from any work
performed by the employee for the Company.

      (b) Jewell acknowledges and agrees that all of the Inventions are works
made for hire and are the property of the Company, including any copyrights,
patents, or other Intellectual Property Rights pertaining thereto.
Notwithstanding the foregoing, Jewell agrees to assign and does hereby assign to
the Company all of Jewell' right, title and interest, including all rights of
copyright, patent and other Intellectual Property Rights, to or in such
Inventions. Jewell covenants that he will promptly: (i) disclose to the Company
in writing any Invention; (ii) take all actions that the Company may request
from time to time to assign to the Company (or to a party designated by the
Company), without additional compensation,

                                  Page 5 of 9
<PAGE>

all of Jewell' rights in and to any Invention for the United States and all
foreign jurisdictions; (iii) execute and deliver to the Company such
applications, assignments and other documents as the Company may request in
order to apply for and obtain patent or other registrations with respect to any
Invention in the United States and all foreign jurisdictions; (iv) sign all
other papers necessary to carry out the foregoing; and (v) give testimony and
render any other reasonable assistance in support of the Company's rights to any
Invention.

      (c) To the extent allowed by law, the foregoing agreement to assign and
the assignment of Inventions include all rights known as or referred to as
"moral rights," "artist's rights," "droit moral," or the like (collectively
"Moral Rights"). To the extent Jewell retains any such Moral Rights under
applicable law, Jewell hereby ratifies and consents to any action that may be
taken with respect to such Moral Rights by, or authorized by, the Company, and
agrees not to assert any Moral Rights with respect thereto.

      (d) Jewell hereby irrevocably designates and appoints the Company and its
agents as attorneys-in-fact to act for and in Jewell' behalf to execute and file
any document and to do all other lawfully permitted acts to further the purposes
of this Section 9 with the same legal force and effect as if executed by Jewell.

      10. Successors and Assigns. This Agreement will inure to the benefit of,
and will be binding upon, the successors and assigns of the parties hereto.

      11. Severability. In the event that any provision of this Agreement should
be held to be void, voidable or unenforceable, the remaining provisions, and any
partially unenforceable provisions to the extent enforceable, will remain in
full force and effect.

      12. Governing Law. This Agreement will be construed in accordance with,
and be governed by, the laws of the State of Washington applicable to contracts
made and to be performed wholly within that State.

      13. Attorneys' Fees. Subject to Section 21 of this Agreement, in the event
any party takes legal action to enforce any of the terms of this Agreement, the
unsuccessful party to such action will pay the successful party's expenses,
including reasonable attorneys' fees and costs, incurred in such action.

      14. Counterparts. This Agreement may be executed simultaneously in two or
more counterparts, each one of which will be deemed an original, but all of
which will constitute one and the same instrument.

      15. Survival. All representations, warranties and agreements made by the
parties hereto in this Agreement will survive the date hereof and any
investigations, inspections, examinations or audits made by or on behalf of any
party.

      16. Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto pertaining to the subject matter hereof, and, except
as otherwise expressly set forth herein, supersedes all prior agreements,
understandings, negotiations and discussions, whether oral or written, relating
to the subject matter of this Agreement. No supplement, modification, waiver or
termination of this Agreement will be valid unless

                                  Page 6 of 9
<PAGE>

executed by the party to be bound thereby. No waiver of any of the provisions of
this Agreement will be deemed or will constitute a waiver of any other
provisions hereof (whether or not similar), nor will such waiver constitute a
continuing waiver unless otherwise expressly provided. Nothing in this Agreement
will affect the provisions of that certain Proprietary Information Agreement
between Jewell and the Company, which will remain in full force and effect.

      17. Injunctive Relief. The parties acknowledge that if a party should
default in any of its obligations under this Agreement it would be impracticable
to measure the resulting damages to the aggrieved party and it may not be
possible to adequately compensate the aggrieved party for the resulting injury
by means of monetary damages. Accordingly, without prejudice to the right to
seek and recover monetary damages, the aggrieved party will be entitled to seek
and obtain specific performance of this Agreement or other injunctive relief,
subject to Section 21 of this Agreement, and the parties each waive any defense
that a remedy in damages would be adequate and any requirement for the aggrieved
party to post any bond or other security in order to obtain such relief.

      18. Notices. Any notice or other communication required or permitted
hereunder will be in writing and will be deemed to have been given and received
(i) if personally delivered, when so delivered, (ii) if mailed, one week after
having been placed in the U.S. mail, as certified mail, postage prepaid,
addressed to the party to whom it is directed at the address set forth below or
(iii) if given by facsimile, when such notice or other communication is
transmitted to the telecopier number specified below and the appropriate
answerback or telephonic confirmation is received. Either party may change the
address to which such notices are to be addressed by giving the other party
notice in the manner herein set forth.

            If to the Company, to:

            Celebrate Express, Inc.
            11200 120th Ave. NE
            Kirkland, Washington 98033
            Facsimile:
            Attention: President and CEO

            With a copy to:

            Jeffry Shelby
            Heller Ehrman LLP
            701 Fifth Avenue
            Seattle, WA  98104
            Facsimile:  (206) 515-8965

            If to Jewell, to:

            Michael K. Jewell

                                  Page 7 of 9
<PAGE>

            With a copy to:

      19. Headings. Section and subsection headings are not to be considered
part of this Agreement and are included solely for convenience and reference and
in no way define, limit or describe the scope of this Agreement or the intent of
any provisions hereof.

      20. Further Assurances. Each party hereto will, from time to time at and
after the date hereof, execute and deliver such instruments, documents and
assurances and take such further actions as the other party may reasonably
request to carry out the purpose and intent of this Agreement.

      21. Arbitration. Any and all disputes, controversies or claims arising out
of or related to this Agreement, including without limitation, those relating to
claims released in Section 6, fraud in the inducement of this Agreement, or the
general validity or enforceability of this Agreement, will be submitted to final
and binding arbitration before JAMS, or its successor, if any, or if it is no
longer in existence, before the American Arbitration Association. The
arbitration will be conducted in King County, Washington, in accordance with the
provisions of JAMS's Streamlined Arbitration Rules and Procedures or, if
applicable, the rules of the American Arbitration Association, in effect at the
time of filing of the demand for arbitration. There will be one arbitrator, who
will be a retired circuit court or federal judge. The parties agree that they
have waived any right to trial by jury. The decision of the arbitrator will be
final and binding and the judgment rendered may be entered in any court having
jurisdiction. The prevailing party in any such arbitration proceeding will be
entitled to its costs and reasonable attorneys' fees, costs and expenses.
Notwithstanding the foregoing, either party may apply to either the federal or
state courts in King County, Washington for temporary or preliminary injunctive
relief, and any such application will not be deemed incompatible with or a
waiver of this agreement to arbitrate.

      22. Legal Counsel. EACH PARTY HEREBY ACKNOWLEDGES THAT IN CONNECTION WITH
THIS AGREEMENT IT HAS SOUGHT THE ADVICE OF SUCH INDEPENDENT LEGAL COUNSEL AS IT
WILL HAVE DETERMINED TO BE NECESSARY OR ADVISABLE IN ITS SOLE AND ABSOLUTE
DISCRETION.

                            [Signature Page Follows]

                                  Page 8 of 9
<PAGE>

                                                                    EXHIBIT 10.1

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date and year first set forth above.

                                     CELEBRATE EXPRESS, INC.

                                     By /s/ Jean Reynolds
                                        ----------------------------------------
                                     Name: Jean Reynolds
                                     Title: Director

                                     /s/ Michael K. Jewell
                                     -------------------------------------------
                                     MICHAEL K. JEWELL

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]