Document:

exv10w1

 

Exhibit 10.1

June 26, 2007

Scott Devitt

13582 Wyecrosse Court

Bristow, VA 20136

Dear Scott,

On behalf of Blue Nile, Inc. (the “Company”), I am pleased to offer you the position of Chief
Financial Officer, reporting to Diane Irvine. The terms of your relationship with the Company will
be as indicated herein.

	 	1.	 	Position. You will become the Chief Financial Officer for the Company. As
such, you will have responsibilities as determined by the President. The Company may
change your position, duties, and reporting relationship from time to time in its
discretion.
	 
	 	2.	 	Base Salary. You will be paid a monthly salary of $16,667 less payroll
deductions and all required withholdings which represents an annualized rate of $200,000.
Your wage will be payable in accordance with the Company’s standard payroll policies. The
Company may modify your compensation from time to time in its discretion.
	 
	 	3.	 	Performance Bonus. You will be eligible to earn an annual performance bonus
with a target payout of $100,000. The target will be pro rated for fiscal year 2007 based
on your start date. Your performance bonus can range from 0% to 200% of target based on the
performance of the Company and your individual performance against key objectives.
	 
	 	4.	 	Signing Bonus. You will be paid a signing bonus of $200,000, with 50% earned
and paid upon your date of employment and 50% paid on your one year anniversary with the
Company subject to your continued employment at that time.
	 
	 	5.	 	Stock Options. We will recommend to the Board of Directors or Subcommittee
thereof, that you be granted a non statutory stock option to purchase 45,000 shares of
common stock of the Company. The exercise price will be the closing sales price (or the
closing bid, if no sales were reported) as quoted on the NASDAQ Stock Market LLC on the
last market trading day prior to the date of grant. One eighth (1/8) of the shares subject
to such option will vest on the six month anniversary of your hire date and one
forty-eighth (1/48) of the shares subject to such option will vest each month thereafter as
long as your employment continues with the Company. The Company’s 2004 Equity Incentive
Plan, the Grant Notice and the Stock Option Agreement shall govern the terms of this option
grant in all respects.
	 
	 	6.	 	Restricted Stock Units. We will recommend to the Board of Board of Directors
or Subcommittee thereof, that you be granted 6,500 restricted stock units. One fourth
(1/4) of the restricted stock units will vest on each anniversary of your hire date as long
as your employment continues with the Company. The Company’s 2004 Equity Incentive Plan,
the Restricted Stock Unit Grant Notice and the Restricted Stock Unit Award Agreement shall
govern the terms of this grant in all respects.
	 
	 	7.	 	Benefits. You will be eligible to participate in our healthcare and dental
benefits, life and disability insurance, and a 401(k) plan effective on the first of the
month following your date of hire in accordance with the terms of the applicable plans.
The Company may modify your benefits from time to time in its discretion.
	 
	 	8.	 	Relocation. We will reimburse you for your reasonable relocation expenses.
	 
	 	9.	 	Standard Employee Agreement. As a condition to your employment, you are
required to sign and comply with the Company’s standard Employee Nondisclosure, Proprietary
Information, Inventions, Nonsolicitation and Noncompetition Agreement.

 

 

	 	10.	 	Employee Handbook. As a Company employee, you will be expected to abide by the
Company’s rules and standards. You further understand that you will be required to
acknowledge and sign that you have received a copy of the Company’s Employee Handbook and
that you understand the Company’s policies set forth in the Company’s Employee Handbook.
	 
	 	11.	 	Federal Immigration Law. For purposes of federal immigration law, you will be
required to provide to the Company documentary evidence of your identity and eligibility
for employment in the United States. Such documentation must be provided to us within
three (3) business days of your date of hire, or our employment relationship with you may
be terminated.
	 
	 	12.	 	At-Will Employment. Your employment is at-will, as defined under applicable
law. This means you may voluntarily quit at any time, for any reason or for no reason,
simply by notifying the Company. Likewise, the Company may terminate your employment at
any time, for any lawful reason or for no reason, with or without cause or advance notice.
This at-will employment relationship cannot be changed except in a writing signed by a
Company officer.
	 
	 	13.	 	Entire Agreement. This offer letter agreement, together with your Employee
Nondisclosure, Proprietary Information, Inventions, Nonsolicitation and Noncompetition
Agreement, constitutes the complete and exclusive statement of your employment agreement
with the Company. The employment terms in this letter supersede any other agreements or
promises made to you by anyone, whether written or oral.
	 
	 	14.	 	Start Date. July 23, 2007.

Again, let me indicate how pleased we all are to extend this offer, and how much we look forward to
working together. Please indicate your acceptance by signing and returning the enclosed copy of
this letter.

Very truly yours,

Blue Nile Inc.

	 	 	 
	/s/ Mark Vadon

	 	 
	 
	 	 
	Mark Vadon, CEO
	 	 

The foregoing terms and conditions are hereby accepted:

	 	 	 	 	 
	Signed:

	 	     /s/ Scott Devitt
	 	 
	 

	 	 	 	 
	 

	 	     Scott Devitt	 	 
	 
	 	 	 	 
	Dated:

	 	     6/27/2007exv10w2

 

Exhibit 10.2

Blue Nile, Inc. 

Restricted Stock Unit Grant Notice

(2004 Equity Incentive Plan)

Blue Nile, Inc. (the “Company”), pursuant to Section 7(b) of the Company’s 2004 Equity Incentive
Plan (the “Plan”), hereby awards to Participant a Restricted Stock Unit Award covering the number
of restricted stock units (the “Restricted Stock Units”) set forth below (the “Award”). This Award
shall be evidenced by a Restricted Stock Unit Award Agreement (the “Award Agreement”). This Award
is subject to all of the terms and conditions as set forth herein and in the applicable Award
Agreement and the Plan, each of which are attached hereto and incorporated herein in their
entirety.

	 	 	 
	Participant:
	 	 
	 

	 	 
	Date of Grant:
	 	 
	 

	 	 
	Vesting Commencement Date:
	 	 
	 

	 	 
	Number of Restricted Stock Units:
	 	 
	 

	 	 
	Payment for Common Stock:

	 	Participant’s services to the Company
	 

	 	 

Vesting Schedule: The Restricted Stock Units shall vest [in four equal annual installments
commencing on the first anniversary of the Vesting Commencement Date].

	 	 	 	 	 
	Special Tax Withholding Right:

	 	o
	 	You may direct the Company
(i) to withhold, from shares
otherwise issuable upon
vesting of the Award, a
portion of those shares with
an aggregate fair market
value (measured as of the
vesting date) equal to the
amount of the applicable
withholding taxes, and (ii)
to make a cash payment equal
to such fair market value
directly to the appropriate
taxing authorities, as
provided in Section 10 of the
Award Agreement.
	 

	 	o
	 	None

Delivery Schedule: Delivery of one share of Common Stock for each Restricted Stock Unit which
vests shall occur on the applicable vesting date, provided that delivery may be delayed as provided
in Section 3 of the Award Agreement.

Additional Terms/Acknowledgements: Participant acknowledges receipt of, and understands and agrees
to, this Grant Notice, the Award Agreement and the Plan. Participant further acknowledges that as
of the Date of Grant, this Grant Notice, the Award Agreement and the Plan set forth the entire
understanding between Participant and the Company regarding the award of the Restricted Stock Units
and the underlying Common Stock and supersede all prior oral and written agreements on that subject
with the exception of (i) Stock Awards previously granted and delivered to Participant under the
Plan, and (ii) the following agreements only:

	 	 	 
	Other Agreements:
	 	
 

	 	 	 	 	 	 	 	 	 
	Blue Nile, Inc.  	 	Participant
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 

Signature	 	 	 	 

Signature

	 
	 	 	 	 	 	 	 	 
	Title:

	 	
 

	 	 	 	Date:
	 	
 

	 
	 	 	 	 	 	 	 	 
	Date:

	 	
 
	 	 	 	 	 	 

Attachments: Award Agreement, and 2004 Equity Incentive Plan

 

 

Blue Nile, Inc. 

2004 Equity Incentive Plan

Restricted Stock Unit Award Agreement

     Pursuant to the Restricted Stock Unit Grant Notice (“Grant Notice”) and this Restricted Stock
Unit Award Agreement (“Agreement”), Blue Nile, Inc. (the “Company”) has awarded you a Restricted
Stock Unit Award pursuant to Section 7(b) of the Company’s 2004 Equity Incentive Plan (the “Plan”)
for the number of Restricted Stock Units as indicated in the Grant Notice (collectively, the
“Award”). Defined terms not explicitly defined in this Agreement but defined in the Plan shall
have the same definitions as in the Plan. Subject to adjustment and the terms and conditions as
provided herein and in the Plan, each Restricted Stock Unit shall represent the right to receive
one (1) share of Common Stock.

     The details of your Award, in addition to those set forth in the Grant Notice, are as follows.

     1. Number of Restricted Stock Units and Shares of Common Stock. The number of
Restricted Stock Units in your Award is set forth in the Grant Notice.

          (a) The number of Restricted Stock Units subject to your Award and the number of shares of
Common Stock deliverable with respect to such Restricted Stock Units may be adjusted from time to
time for Capitalization Adjustments as described in Section 11(a) of the Plan. Except as provided
in Section 11 below, you shall receive no benefit or adjustment to your Award with respect to any
cash dividend or other distribution that does not result in a Capitalization Adjustment pursuant to
Section 11(a) of the Plan; provided, however, that this sentence shall not apply with respect to
any shares of Common Stock that are delivered to you in connection with your Award after such
shares have been delivered to you.

          (b) Any additional Restricted Stock Units, shares of Common Stock, cash or other property that
becomes subject to the Award pursuant to this Section 1 shall be subject, in a manner determined by
the Board, to the same forfeiture restrictions, restrictions on transferability, and time and
manner of delivery as applicable to the other Restricted Stock Units and Common Stock covered by
your Award.

          (c) Notwithstanding the provisions of this Section 1, no fractional Restricted Stock Units or
rights for fractional shares of Common Stock shall be created pursuant to this Section 1. The
Board shall, in its discretion, determine an equivalent benefit for any fractional Restricted Stock
Units or fractional shares that might be created by the adjustments referred to in this Section 1.

     2. Vesting. The Restricted Stock Units shall vest, if at all, as provided in the
Vesting Schedule set forth in your Grant Notice and the Plan, provided that vesting shall cease
upon the termination of your Continuous Service.

     3. Delivery of Shares of Common Stock. Subject to the provisions of this Agreement
and the Plan, in the event one or more Restricted Stock Units vests, the Company shall deliver to
you one (1) share of Common Stock for each Restricted Stock Unit that vests on the applicable
vesting date. However, if a scheduled delivery date falls on a date that is not a business day,
such delivery date shall instead fall on the next following business day. Notwithstanding the
foregoing, in the event that you are subject to the Company’s Policy on

 

 

Stock Trading by Directors, Officers and Employees (or any successor policy) and any shares
covered by your Award are scheduled to be delivered on a day (the “Original Delivery Date”) that
does not occur during a “window period” applicable to you as determined by the Company in
accordance with such policy, then such shares shall not be delivered on such Original Delivery Date
and shall instead be delivered on the earlier to occur of the following: (i) the first day of the
next “window period” applicable to you pursuant to such policy; or (ii) the day that is sixty (60)
days after the Original Delivery Date. The form of such delivery (e.g., a stock certificate or
electronic entry evidencing such shares) shall be determined by the Company.

     4. Payment by You. This Award was granted in consideration of your services for the
Company. Subject to Section 10 below, except as otherwise provided in the Grant Notice, you will
not be required to make any payment to the Company (other than your past and future services for
the Company) with respect to your receipt of the Award, vesting of the Restricted Stock Units, or
the delivery of the shares of Common Stock underlying the Restricted Stock Units.

     5. Securities Law Compliance. You may not be issued any Common Stock under your
Award unless the shares of Common Stock are either (i) then registered under the Securities Act, or
(ii) the Company has determined that such issuance would be exempt from the registration
requirements of the Securities Act. Your Award must also comply with other applicable laws and
regulations governing the Award, and you shall not receive such Common Stock if the Company
determines that such receipt would not be in material compliance with such laws and regulations.

     6. Restrictive Legends. The Common Stock issued under your Award shall be endorsed
with appropriate legends, if any, determined by the Company.

     7. Transfer Restrictions. Prior to the time that shares of Common Stock have been
delivered to you, you may not transfer, pledge, sell or otherwise dispose of the shares in respect
of your Award. For example, you may not use shares that may be issued in respect of your
Restricted Stock Units as security for a loan, nor may you transfer, pledge, sell or otherwise
dispose of such shares. This restriction on transfer will lapse upon delivery to you of shares in
respect of your vested Restricted Stock Units. Your Award is not transferable, except by will or
by the laws of descent and distribution. Notwithstanding the foregoing, by delivering written
notice to the Company, in a form satisfactory to the Company, you may designate a third party who,
in the event of your death, shall thereafter be entitled to receive any distribution of Common
Stock pursuant to this Agreement.

     8. Award not a Service Contract. Your Award is not an employment or service
contract, and nothing in your Award shall be deemed to create in any way whatsoever any obligation
on your part to continue in the service of the Company or any Affiliate, or on the part of the
Company or any Affiliate to continue such service. In addition, nothing in your Award shall
obligate the Company or any Affiliate, their respective stockholders, boards of directors or
employees to continue any relationship that you might have as an Employee or Consultant of the
Company or any Affiliate.

 

 

     9. Unsecured Obligation. Your Award is unfunded, and even as to any Restricted Stock
Units which vest, you shall be considered an unsecured creditor of the Company with respect to the
Company’s obligation, if any, to issue Common Stock pursuant to this Agreement. You shall not have
voting or any other rights as a stockholder of the Company with respect to the Common Stock
acquired pursuant to this Agreement until such Common Stock is issued to you pursuant to Section 3
of this Agreement. Upon such issuance, you will obtain full voting and other rights as a
stockholder of the Company with respect to the Common Stock so issued. Nothing contained in this
Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a
trust of any kind or a fiduciary relationship between you and the Company or any other person.

     10. Withholding Obligations.

          (a) On or before the time you receive a distribution of Common Stock pursuant to your Award,
or at any time thereafter as requested by the Company, you hereby authorize any required
withholding from the Common Stock issuable to you and otherwise agree to make adequate provision in
cash for any sums required to satisfy the federal, state, local and foreign tax withholding
obligations of the Company or any Affiliate which arise in connection with your Award (the
“Withholding Taxes”). If specified in your Grant Notice, you may direct the Company to withhold
shares of Common Stock with a Fair Market Value (measured as of the vesting date) equal to the
amount of such Withholding Taxes; provided, however, that the number of such shares of Common Stock
so withheld shall not exceed the amount necessary to satisfy the Company’s required tax withholding
obligations using the minimum statutory withholding rates for federal, state, local and foreign tax
purposes, including payroll taxes, that are applicable to supplemental taxable income.

          (b) Unless the tax withholding obligations of the Company and/or any Affiliate are satisfied,
the Company shall have no obligation to deliver to you any Common Stock.

          (c) In the event the Company’s obligation to withhold arises prior to the delivery to you of
Common Stock or it is determined after the delivery of Common Stock to you that the amount of the
Company’s withholding obligation was greater than the amount withheld by the Company, you agree to
indemnify and hold the Company harmless from any failure by the Company to withhold the proper
amount.

     11. Dividend Equivalents. In accordance with Section 7(b)(v) of the Plan, the
Restricted Stock Units subject to this Award shall be credited with any dividends declared and paid
by the Company on its Common Stock. Such dividend equivalents shall be 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 Common Stock equal to the number of Restricted Stock Units then
credited by (2) the Fair Market Value per share of Common 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 the terms and conditions, including vesting, of this Award.

 

 

     12. Notices. Any notices provided for in your Award or the Plan shall be given in
writing to each of the other parties hereto and shall be deemed effectively given on the earlier of
(i) the date of personal delivery, including delivery by express courier, or (ii) the date that is
five (5) days after deposit in the United States Post Office (whether or not actually received by
the addressee), by registered or certified mail with postage and fees prepaid, addressed at the
following addresses, or at such other address(es) as a party may designate by ten (10) days’
advance written notice to each of the other parties hereto:

	 	 	 
	Company:

	 	Blue Nile, Inc.
	 

	 	Attn: General Counsel
	 

	 	705 Fifth Avenue South
	 

	 	Seattle, WA 98104
	 
	 	 
	Participant:

	 	Your address as on file with the Company at the time notice is given

     13. Headings. The headings of the Sections in this Agreement are inserted for
convenience only and shall not be deemed to constitute a part of this Agreement or to affect the
meaning of this Agreement.

     14. Amendment. This Agreement may be amended only by a writing executed by the
Company and you which specifically states that it is amending this Agreement. Notwithstanding the
foregoing, this Agreement may be amended solely by the Company by a writing which specifically
states that it is amending this Agreement, so long as a copy of such amendment is delivered to you,
and provided that no such amendment adversely affecting your rights hereunder may be made without
your written consent. Without limiting the foregoing, the Company reserves the right to change, by
written notice to you, the provisions of this Agreement in any way it may deem necessary or
advisable to carry out the purpose of the grant as a result of any change in applicable laws or
regulations or any future law, regulation, ruling, or judicial decision, provided that any such
change shall be applicable only to rights relating to that portion of the Award which is then
subject to restrictions as provided herein.

     15. Miscellaneous.

          (a) The rights and obligations of the Company under your Award shall be transferable by the
Company to any one or more persons or entities, and all covenants and agreements hereunder shall
inure to the benefit of, and be enforceable by the Company’s successors and assigns.

          (b) You agree upon request to execute any further documents or instruments necessary or
desirable in the sole determination of the Company to carry out the purposes or intent of your
Award.

          (c) You acknowledge and agree that you have reviewed your Award in its entirety, have had an
opportunity to obtain the advice of counsel prior to executing and accepting your Award and fully
understand all provisions of your Award.

 

 

          (d) This Agreement shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required.

          (e) All obligations of the Company under the Plan and this Agreement shall be binding on any
successor to the Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

     16. Governing Plan Document. Your Award is subject to all the provisions of the
Plan, the provisions of which are hereby made a part of your Award, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time be promulgated and
adopted pursuant to the Plan. In the event of any conflict between the provisions of your Award
and those of the Plan, the provisions of the Plan shall control; provided, however, that Section 3
of this Agreement shall govern the timing of any distribution of Common Stock under your Award.
The Company shall have the power to interpret the Plan and this Agreement and to adopt such rules
for the administration, interpretation, and application of the Plan as are consistent therewith and
to interpret or revoke any such rules. All actions taken and all interpretations and determinations
made by the Board shall be final and binding upon you, the Company, and all other interested
persons. No member of the Board shall be personally liable for any action, determination, or
interpretation made in good faith with respect to the Plan or this Agreement.

     17. Effect on Other Employee Benefit Plans. The value of the Award subject to this
Agreement shall not be included as compensation, earnings, salaries, or other similar terms used
when calculating benefits under any employee benefit plan (other than the Plan) sponsored by the
Company or any Affiliate except as such plan otherwise expressly provides. The Company expressly
reserves its rights to amend, modify, or terminate any or all of the employee benefit plans of the
Company or any Affiliate.

     18. Severability. If all or any part of this Agreement or the Plan is declared by
any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity
shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or
invalid. Any Section of this Agreement (or part of such a Section) so declared to be unlawful or
invalid shall, if possible, be construed in a manner which will give effect to the terms of such
Section or part of a Section to the fullest extent possible while remaining lawful and valid.

     19. Other Documents. You hereby acknowledge receipt or the right to receive a
document providing the information required by Rule 428(b)(1) promulgated under the Securities Act.
In addition, you acknowledge receipt of the Company’s Policy on Stock Trading by Directors,
Officers and Employees.

* * * * *

 

 

     This Restricted Stock Unit Award Agreement shall be deemed to be signed by the Company and the
Participant upon the signing by the Participant of the Restricted Stock Unit Grant Notice to which
it is attached.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]