Document:

exv10w12

 

Exhibit 10.12

March 25, 2005

Dear Doug,

On behalf of Shutterfly, Inc. (the “Company”), I am pleased to offer you the full-time position of
Senior Vice President Business & Corporate Development reporting to Jeff Housenbold, President &
CEO. By signing this letter, you confirm to the Company that you have no contractual commitments
or other legal obligations that would prohibit you from performing your duties for the Company.

Your base salary will be $225,000, annually, subject to all applicable deductions and withholding
payable in accordance with the Company’s standard payroll policies. In addition, you will be
eligible to be considered for an incentive bonus, which will be submitted to and reviewed and
approved by the Company’s Compensation Committee. The bonus (if any) will be awarded based on your
achievement of criteria established by the Company’s Compensation Committee, including but not
limited to the Company’s achievement of its financial target objectives.

Stock Options:

You will be granted an option to purchase 200,000 shares of the Company’s Common Stock, at an
exercise price equal to the fair market value of the Common Stock on the date the Board grants your
stock option or on your first date of employment with the Company, whichever is later. Your option
will be subject to all of the terms, conditions and restrictions of the Company’s 1999 Stock Plan
and the execution of a stock option agreement pursuant to such plan.

If the Company is subject to a Change in Control (as defined in the Plan), merger or acquisition,
whereas, (1) you will no longer be SVP Business & Corporate Development of Shutterfly, or (2) your
role is materially diminished, or (3) the corporate office is moved and you choose not to relocate
with the company, then Shutterfly will agree to pay you severance pay of 6 months following the
termination of your employment and accelerate your vesting schedule by 12 months from that date.
Your severance pay will be paid in accordance with the Company’s standard payroll procedures.
However, to receive this severance pay you must have (a) signed a general release (in a form
prescribed by the Company) and (b) returned all Company property. If the Company is subject to a
Change in Control (as defined in the Plan), merger or acquisition, whereas, you continue to report
to the Board of Shutterfly, the severance and accelerated vesting will not be offered.

Severance:

If the Company terminates your employment for any reason other than Cause (as defined in the next
paragraph), then the Company will pay you severance pay for a period of 6 months and accelerate
your vesting schedule by 6 months from that date following the termination of your employment.
Your monthly severance pay will be paid at the rate of your monthly base salary in effect at the
time of the termination of your employment and in accordance with the Company’s standard payroll
procedures. However, to receive this severance pay you must have (a) signed a general release (in
a form prescribed by the Company) and (b) returned all Company property.

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For all purposes under this letter agreement, “Cause” means (a) any breach of this letter
agreement, the Proprietary Information and Inventions Agreement between you and the Company, or any
other written agreement between you and the Company; (b) any failure to comply with the Company’s
written policies or rules, as they may be in effect from time to time during your employment; (c)
commission, conviction of, or a plea of “guilty’ or “no contest” to, a felony under the laws of the
United States or any State; (d) neglect of duties; or (e) misconduct.

All portions of this offer will be in effect as of the above stated start date once this letter is
signed by both parties.

As a regular, full time employee of Shutterfly, you will be provided with the Company benefit
package. The Company’s existing plans for group life, health and accident insurance may change
from time to time.

Shutterfly is excited about having you join our team. We feel we are a great company and take
pride in treating our employees with dignity and respect. As you well know, there are numerous
laws that both the employee and employer must understand and accept. The next several paragraphs
list the legal requirements associated with becoming a Shutterfly employee.

This offer of employment is contingent upon you completing, signing, and returning to us, this
offer letter and the Employee Proprietary Information and Inventions Agreement. In addition, by
accepting these terms of employment, you represent that you have not brought and will not bring
with you to the Company, or utilize In the course of your employment by the Company, any
confidential or proprietary information or materials of any prior employer.

For purposes of federal immigration law (Immigration Reform and Control Act of 1986) you are
required to provide documentary evidence of your eligibility for employment in the United States.
Please bring the appropriate documentation, as listed on the enclosed I-9 Form, with you to New
Hire Orientation.

Further, your employment with Shutterfly is “at will” and may be terminated by either the employee
or the Company at any time, for any reason, with or without cause and with or without notice.
Nothing in this offer is to be construed as a contract of employment for any specific length of
time.

Finally, by accepting this offer, you agree to be bound by an agreement to arbitrate set forth in
this paragraph, which means that if a dispute arises between you and the Company during your
employment or after, the dispute would be resolved by a neutral arbitrator, rather than through a
lawsuit. The neutral arbitrator will be selected and the arbitration conducted pursuant to the
Employment Dispute Resolution rules of the American Arbitration Association (AAA). This paragraph
covers all disputes arising from your employment, including (1) claims for wages, benefits or
compensation, (2) all torts and contract claims of any kind, including disputes concerning this
paragraph, and (3) claims based on any federal or state law, including discrimination, harassment
or retaliation. The only claims not covered by this paragraph are worker’s compensation and
unemployment compensation claims. In addition, this paragraph does not preclude the Company from
enforcing in court its rights under the Employee Proprietary Information and Inventions Agreement
or any other agreement concerning

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intellectual property, proprietary or confidential information or inventions and any laws
concerning these subjects. Except as provided in the previous two sentences, arbitration is the
exclusive remedy for all disputes covered by this paragraph, including whether a particular dispute
is covered by this paragraph, and is binding on both parties, which means that BOTH YOU AND THE
COMPANY WAIVE ANY RIGHT TO A JURY TRIAL. If you would like to review a copy of the AAA Employment
Dispute Resolution rules, please contact Connie Tedrow in the Human Resources Department.

Doug, we are pleased to welcome you to Shutterfly. Please signify your acceptance of our offer by
signing it below and returning this letter to Connie Tedrow, no later than March 30, 2004.

Very truly yours,

/s/ Jeff Housenbold

Jeff Housenbold

Chief Executive Officer

cc: Human Resources File

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I accept Shutterfly’s offer of employment and agree to the terms in this letter and its
attachments. I acknowledge that except for the Employee Proprietary Information and Inventions
Agreement attached to the letter, this letter is the entire agreement related to my employment with
Shutterfly and supersedes all prior or contemporaneous oral or written communication and
representations. This agreement (offer of employment, attachments and Employee Proprietary
Information and Inventions Agreement) can only be modified in writing, by signed agreement from the
Chairman of the Board. I accept this offer voluntarily and not in reliance on any promises other
than those contained in this letter and attachments.

	 	 	 	 	 
	/s/ Doug Galen

	 	Doug Galen
	 	 
	 

	 	 	 	 
	Name, Signature

	 	Name Printed	 	 
	 
	 	 	 	 
	3-31-05
 

	 	  	 	 
	Today’s Date

	 	 	 	 
	 
	 	 	 	 
	3-31-05
 

	 	  	 	 
	Start Date

	 	 	 	 

4exv10w13

 

Exhibit 10.13

April 3, 2006

Dear Stanford:

Shutterfly, Inc. (the “Company”) is pleased to offer you the opportunity to join Shutterfly. You
are being offered a position as SVP of Technology reporting to me. If you decide to join us, your
annual base pay will be $235,000.00 less applicable taxes and withholdings. You will be paid
semimonthly in accordance with the Company’s normal payroll procedure. Shutterfly may change
your position, compensation, duties and work location from time to time, as it deems appropriate.
Your start date is April 3, 2006.

Stock:

Subject to the approval of the Company’s Board of Directors, you will be granted an option to
purchase 210,000 shares of the Company’s Common Stock, at an exercise price equal to the fair
market value of the Common Stock on the date the Board grants your stock option or on your first
date of employment with the Company, whichever is later. Your option will be subject to all of the
terms, conditions and restrictions of the Company’s 1999 Stock Plan and the execution of a stock
option agreement pursuant to such plan.

Hire in Bonus:

You will receive hire in bonus of $15,000 less applicable withholding after 90 days of employment.
If you terminate prior to one (1) year of employment you will be responsible for reimbursing the
company a prorated portion of the bonus.

Benefits:

As an employee, you will also be eligible to receive certain employee benefits including medical
and dental coverage. The medical, dental and vision coverage begin on your date of hire as an
employee. The Company reserves the right to revise or discontinue any or all of its benefit plans,
at any time, in the Company’s sole discretion.

Holidays

Shutterfly observes eleven paid holidays per year. The holiday schedule may change at management’s
discretion.

Change in Control:

If the Company is subject to a Change of Control (as defined in the Plan), merger or acquisition,
whereas, (1) you will no longer be SVP of Technology of Shutterfly, or (2) your role is mutually
diminished, or (3) the corporate office is moved 50 miles or more and you choose not to relocate
with the company, then Shutterfly will agree to pay you severance of six (6) months following the
termination of your employment and accelerate your vesting schedule by 12 months from that date.
Your severance pay will be paid in accordance with the Company’s standard payroll procedures.
However, to receive this severance you must (1) signed a general release (in a form prescribed by
the Company) and (b) return all the Company property. If the Company is subject to a Change of
Control (as defined in the Plan), merger or acquisition, you continue to report to the President,
the severance and accelerated vesting will not be offered.

Introductory Period

Your first 90 days of work is known as an “Introductory Period”. This “getting acquainted”

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period gives your manager the opportunity to determine your ability to perform your job. It also provides
you with the opportunity to determine if you are satisfied with the job and the Company. Shutterfly
reserves the right to extend or cut short the duration of the Introductory Period when it
determines appropriate to do so. However, either you or the company can terminate the employment
relationship at any time during or after the Introductory Period, with or without cause or advance
notice.

Employment Eligibility Verification

For purposes of federal immigration law, you will be required to provide to Shutterfly 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 first date of hire with Shutterfly,
or our employment relationship with you may be terminated.

Employment at Will

If you choose to accept this offer, your employment with Shutterfly will be voluntarily entered
into and will be for no specified period. As a result, you will be free to resign at any time, for
any reason, as you deem appropriate. Shutterfly will have a similar right and may conclude its
employment relationship with you at any time, with or without cause or advance notice.

Acceptance of Offer

To indicate your acceptance of this employment agreement, please sign and date in the space
provided below and return it to Shutterfly, 2800 Bridge Parkway, Redwood City, CA 94065 attention
Human Resources or via Fax to (650) 610 - 5280 no later than April 3, 2006 after which it will
expire. A duplicate original is enclosed for your records. In addition to this letter, your offer
of employment is conditioned upon your: (1) completion and signing of the Shutterfly employment
application; (2) successful completion of a background and reference check and (3) signing of the
Shutterfly Employee Invention Assignment and Confidentiality (and any other similar agreements
relating to proprietary rights between you and the Company).

In the event of any dispute or claim relating to or arising out of your employment relationship
with the Company, this agreement, or the termination of your employment with the Company for any
reason (including, but not limited to, any claims of breach of contract, wrongful termination or
age, sex, race, national origin, disability or other discrimination or harassment), all such
disputes shall be fully, finally and exclusively resolved by binding arbitration conducted by JAMS
under JAMS Employment Arbitration Rules and Procedures then in effect, which are available online
at JAMS’ website at www.jamsadr.org You and the Company hereby waive your respective rights
to have any such disputes or claims tried before a judge or jury.

This letter agreement, the Shutterfly Employee Invention Assignment and Confidentiality Agreement,
and stock option agreement constitute the entire agreement between you and the Company regarding
the terms and conditions of your employment with Shutterfly and supersedes any prior
representations or agreements, whether written or oral. This letter, along with any agreements
herein, may not be modified or amended except by a written agreement signed by the Chief Executive
Officer of the Company. If we do not hear from you by April 3, 2006, we will assume you have
decided not to join Shutterfly.

We look forward to your positive response and welcoming you to the Shutterfly team.

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Sincerely,

/s/ Jeff
Housenbold

Jeff Housenbold

President & CEO

Enclosures

Acceptance

I agree to and accept employment with Shutterfly on the terms and conditions set forth in this
agreement. I Understand and agree that my employment with the Company is at-will.

	 	 	 	 	 	 	 	 	 
	Signature:

	 	/s/ Stanford Au
	 	Date:
	 	4/3/06
	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Stanford Au	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Start Date: April 3, 2006	 	 	 	 	 	 

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