Document:

exv10w2

 

EXHIBIT 10.2

March 7, 2008

Harold J. Egler

[Address]

Dear Harry,

I am pleased to extend an offer of employment with Celebrate Express, Inc. on the
following terms and conditions:

Position. You will be employed in the position of Vice President Marketing
for Celebrate Express, Inc. In this position, you will be responsible for providing
marketing leadership across all brands and all sales channels, including catalog and
online. This will include but may not be limited to:

	•	 	The successful development and execution of highly rationalized catalog
circulation plans.
	 
	•	 	Lead the marketing and branding development of the Company’s Next
Generation website, including the prioritized ROI-based selection of features,
benefits and technologies; partner with the head of technology in the successful
on-time, on-budget phased implementation, pending Board approval.
	 
	•	 	Sales and order budgeting and forecasting across all channels by day and
order method
	 
	•	 	Develop the marketing analytics and key metrics necessary to support
thorough, timely and effective direct marketing management.
	 
	•	 	The development of cohesive customer contact strategies across all
channels, e.g., catalogs, emails, package inserts, etc.
	 
	•	 	Building customer loyalty and positive word of mouth advertising
	 
	•	 	Continuous development and leveraging of the CBX customer database, the
centerpiece for Celebrate Express’ business intelligence, e.g., the development of
customer lifetime value models; ensure the efficacy of the database at all times.
	 
	•	 	New business development, e.g., loyalty programs, joint ventures, business-to-business
	 
	•	 	Market research
	 
	•	 	The communication and coordination of marketing initiatives company-wide
	 
	•	 	The development and execution of effective customer communications
policies and procedures to support Celebrate Express’ Customer First! initiative.
	 
	•	 	Optimizing the income from ancillary revenue streams like list rental
sales, package insert programs and online upselling.
	 
	•	 	The quantitative testing and assessment of marketing and business
opportunities.
	 
	•	 	The development of merchandise analyses and assortment plans; develop
data, reports and analyses to support merchandising post mortems
	 
	•	 	Partnering with Finance to develop a rolling three year financial model.
	 
	•	 	Brand development strategies; public relations
	 
	•	 	Team building and mentoring; creating a positive role model toward
creating a disciplined direct marketing environment that will attract and retain top
talent.

You will be part of the Celebrate Express senior management team and as such will also
participate in setting, planning and executing the overall vision for Celebrate Express.
On occasion, you will be expected to travel to Greensboro North Carolina, the location of
the Company’s distribution center and other locations as needed. You will also be
expected to participate in other special projects and related activities. You will
report to the Company’s CEO.

Compensation. This is a full time exempt position. Your cash compensation will be
$8461.54 payable every two weeks. There are 26 pay periods each year. We anticipate this is
equal to approximately $220,000 per year. In addition, starting in FY09 you will be eligible
for an annual bonus opportunity through the Management Incentive Compensation Plan of up to
20% of your annual salary based on the achievement of Company and individual objectives each
fiscal year which begins June 1 and ends May 31. The weight of the bonus opportunity shall
be 75% on the Company achieving its financial objectives and 25% on individual/department
objectives payable in FQ1 following the close of the fiscal year, which is May 31. Bonus
objectives shall be documented in writing, and

 

 

agreed upon by the CEO and you within 30 days of your employment start date. Future bonus
opportunities shall be aligned with current Company programs made available to all executives
and as approved by the Board of Directors.

	 	 	 	 	 
	Targeted Annual Earnings [TAE]:
	 	 	 	 
	Salary
	 	$	220,000	 
	Bonus at 100% of plan
	 	$	44,000	 
	 
	 	 	 
	TAE
	 	$	264,000	 

Celebrate Express believes employees should be able to participate in the ownership of the
Company through the Company’s Equity Incentive Plan. It is the responsibility of every
employee/stockholder to help the Company succeed in the market. A stock option in effect
enables you to become a part owner of the Company. As part of this offer letter we will
propose to our Board of Directors that you receive a stock option for 20,000 shares to be
earned over a four-year period. In accordance with the Plan, vesting will start as of the
date set by the Board of Directors and the exercise price will be the closing price of our
common stock on the date the Board approves the option grant.

Employee Benefits. You will be entitled to the personal leave, holiday and other
benefits for employees. The company currently offers 10 paid holidays each year. Personal
leave hours will begin accruing upon the first date of your employment, accruing at the rate
of 20 days per year. This is equal to 1.66 personal leave days earned per month (20 days /
12 months = 1.66 days).

The Company has a group medical policy, that you will become eligible to participate in the
first day of the month following your date of employment. At this time, the medical premiums
are paid at the rate of approximately 80%/20% for employees and 50%/50% for dependent
coverage. This means the company will pay approximately 80% of the cost of your
medical/dental insurance and approximately 50% of the cost for eligible dependents. The
premiums are deducted via payroll deductions on a pre-tax basis.

The company will provide a life insurance policy at 1.5 times annual salary, with a maximum
benefit of $300,000. All other benefits will follow standard company benefits offered to all
employees.

The Company will reimburse reasonable business expenses incurred by you on behalf of the
Company, subject to compliance with the Company’s policies regarding personal expense
reports.

Proprietary Information Agreement. You will sign a Proprietary Information Agreement
in the Company’s standard form.

At Will Employment. You understand that your employment with the Company is at-will
and may be terminated by you or the Company at any time, without cause.

Arbitration Agreement. You will sign the Arbitration Agreement that is included with
this offer letter.

Covenant Not to Compete. You agree that for twelve months after termination from
employment with the Company, you will not directly or indirectly, whether as employee,
officer, director, independent contractor, consultant, financing source, agent, partner,
member or otherwise, engage in or have any interest in or enter into any relationship with
any company, business, or business activity which is a competitor or is in competition with
the products and services being developed, manufactured or sold by the Company in any
geographic area in which the Company markets or has marketed its products or services. A
“competitor” means any Company or business that derives five percent (5%) or more of its
gross sales from the sale of products/services in the party supply and Halloween and costume
and girls special occasion apparel markets, offered by Celebrate Express, Inc.

No Solicitation. You agree that for twelve months after termination of employment
from the Company, you will not directly or indirectly solicit, assist, advise, or induce any
individual or entity to end their relationship with Company or to enter into a relationship
with any of Company’s competitors.

 

 

Governing Law. This agreement will be governed by the laws of the State of
Washington as applied to contracts made and to be performed in Washington. If any provision
of this agreement is held to be unenforceable or invalid, the remainder of this agreement
will nevertheless remain in full force and effect.

Expiration to Offer. This offer of employment is valid through the close of
business on March 10, 2008. To indicate your acceptance, please return a signed copy of this
letter to me by that date. We anticipate your start date to be on March 13, 2008, or other
mutually acceptable date.

We are pleased to have you as part of the team. We believe in you and your abilities to
assist us with our expansion plans. Trust, loyalty, a strong focus on customer satisfaction
and a commitment to excellence summarizes our Company culture and values.

On behalf of the team, welcome to Celebrate Express, Inc.

Best regards,

	 	 	 	 	 
	/s/ Kevin Green
 	 
	Kevin Green 	 
	President and Chief Executive Officer 	 
	 

Acceptance:

I understand and voluntarily accept all the terms above without exception or reservation.

	 	 	 	 	 	 	 	 	 	 	 
	Signature:

	 	/s/ Harold Egler
	 	 
	 	Date:
	 	March 13, 2008exv10w3

 

EXHIBIT 10.3

January 10, 2008

Kristopher S. Galvin

[Address]

Dear Kris,

I am pleased to extend an offer of employment with Celebrate Express, Inc. on the
following terms and conditions:

Position. You will be employed in the position of Chief Financial Officer for
Celebrate Express, Inc. In this position, you will be responsible for providing
leadership in planning, developing and maintaining the Company’s financial
organization to support the business needs of Celebrate Express. This includes
treasury, investor relations, banking and leasing relationships, budgeting, forecasts,
cash management, financial controls, and tax and audit functions with a current staff
of seven. The CFO is an officer of the Company and will also be a member of the
Strategic Planning Team in planning and executing the overall vision for Celebrate
Express, Inc. This individual takes a leading role in helping to implement that
strategy.

Additionally, the CFO is responsible for staffing, training and ongoing development of
finance and accounting personnel. Furthermore, this position is responsible for
review and approval of monthly, quarterly and annual financial statements and other
applicable duties. On occasion, you will be expected to travel to Greensboro North
Carolina, and other locations as needed. You will also be expected to participate in
other special projects and related activities. You will report to the Company’s CEO.

Compensation. This is a full time exempt position. Your cash compensation
will be $8,076.92 payable every two weeks. There are 26 pay periods each year. We
anticipate this is equal to approximately $210,000 per year. In addition, you will be
eligible for an annual bonus opportunity through the Management Incentive Compensation
Plan of up to 25% of your annual salary based on the achievement of Company and
individual objectives each fiscal year which begins June 1 and ends May 31. The
weight of the bonus opportunity shall be 75% on the Company achieving its financial
objectives and 25% on individual/department objectives payable in FQ1 following the
close of the fiscal year, which is May 31. Bonus objectives shall be documented in
writing, and agreed upon by the CEO and you within 30 days of your employment start
date. Future bonus opportunities shall be aligned with current Company programs made
available to all executives and as approved by the Board of Directors.

	 	 	 	 	 
	Targeted Annual Earnings [TAE]:	 
	Salary
	 	$	210,000	 
	Bonus at 100% of plan
	 	$	52,500	 
	 
	 	 	 
	TAE
	 	$	262,500	 

Celebrate Express believes employees should be able to participate in the ownership of
the Company through the Company’s Equity Incentive Plan. It is the responsibility of
every employee/stockholder to help the Company succeed in the market. A stock
option in effect enables you to become a part owner of the Company. As part of
this offer letter we will propose to our Board of Directors that you receive a stock
option for 30,000 shares to be earned over a four-year period. In accordance with the
Plan, vesting will start as of the date set by the Board of Directors and the exercise
price will be the closing price of our common stock on the date the Board approves the
option grant.

Employee Benefits. You will be entitled to the personal leave, holiday and
other benefits for employees. The company currently offers 10 paid holidays each
year. Personal leave hours will begin accruing upon

 

 

the first date of your employment, accruing at the rate of 20 days per year. This is
equal to 1.66 personal leave days earned per month (20 days / 12 months = 1.66 days).

The Company has a group medical policy, that you will become eligible to participate
in the first day of the month following your date of employment. At this time, the
medical premiums are paid at the rate of approximately 80%/20% for employees and
50%/50% for dependent coverage. This means the company will pay approximately 80% of
the cost of your medical/dental insurance and approximately 50% of the cost for
eligible dependents. The premiums are deducted via payroll deductions on a pre-tax
basis.

The company will provide a life insurance policy at 1.5 times annual salary, with a
maximum benefit of $300,000. All other benefits will follow standard company benefits
offered to all employees.

The Company will reimburse reasonable business expenses incurred by you on behalf of
the Company, subject to compliance with the Company’s policies regarding personal
expense reports.

Proprietary Information Agreement. You will sign a Proprietary Information
Agreement in the Company’s standard form.

At Will Employment. You understand that your employment with the Company is
at-will and may be terminated by you or the Company at any time, without cause.

Arbitration Agreement. You will sign the Arbitration Agreement that is
included with this offer letter.

Covenant Not to Compete. You agree that for twelve months after termination
from employment with the Company, you will not directly or indirectly, whether as
employee, officer, director, independent contractor, consultant, financing source,
agent, partner, member or otherwise, engage in or have any interest in or enter into
any relationship with any company, business, or business activity which is a
competitor or is in competition with the products and services being developed,
manufactured or sold by the Company in any geographic area in which the Company
markets or has marketed its products or services. A “competitor” means any Company or
business that derives five percent (5%) or more of its gross sales from the sale of
products/services in the party supply and Halloween and costume and girls special
occasion apparel markets, offered by Celebrate Express, Inc.

No Solicitation. You agree that for twelve months after termination of
employment from the Company, you will not directly or indirectly solicit, assist,
advise, or induce any individual or entity to end their relationship with Company or
to enter into a relationship with any of Company’s competitors.

Governing Law. This agreement will be governed by the laws of the State of
Washington as applied to contracts made and to be performed in Washington. If any
provision of this agreement is held to be unenforceable or invalid, the remainder of
this agreement will nevertheless remain in full force and effect.

Expiration to Offer. This offer of employment is valid through the close of
business on January 14, 2008. To indicate your acceptance, please return a signed
copy of this letter to me by that date. We anticipate your start date to be on
February 4, 2008, or other mutually acceptable date.

We are pleased to have you as part of the team. We believe in you and your abilities
to assist us with our expansion plans. Trust, loyalty, a strong focus on customer
satisfaction and a commitment to excellence summarizes our Company culture and values.

 

 

On behalf of the team, welcome to Celebrate Express, Inc.

Best regards,

	 	 	 	 	 
	             /s/ Kevin Green
 	 
	Kevin Green 	 
	President and Chief Executive Officer 	 
	 

Acceptance:

I understand and voluntarily accept all the terms above without exception or
reservation.

	 	 	 	 	 	 	 
	/s/ Kristopher Galvin

	 	 
	 	January 11, 2008
	 	 
	 	 	 	 	 	 	 
	Signature

	 	 	 	Date

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