Document:

ex10_02

Exhibit 10.02

[*] Confidential treatment requested

CONFIDENTIAL TREATMENT REQUESTED, CERTAIN PORTIONS OF THIS
DOCUMENT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATEMENT AND, WHERE APPLCIABLE, HAVE BEEN MARKED
WITH AN ASTERISK TO DENOTE WHERE OMISSIONS HAVE BEEN MADE.  THE
CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISION

AMENDMENT NO. 2
TO
SUPPLY AGREEMENT
    
This Amendment No. 2 to the Supply Agreement (the “Amendment”) is made as of August 23, 2012 (“Amendment Effective Date”) by and between Shutterfly, Inc. (“Shutterfly”), a Delaware corporation with offices at 2800 Bridge Parkway, Redwood City, CA  94065 and FUJIFILM North America Corporation (“Fujifilm”), a New York corporation with offices at 200 Summit Lake Drive, Valhalla. New York 10595.

WHEREAS, the parties have entered into that certain Supply Agreement dated as of April 20, 2007 and Amendment No.1 to Supply Agreement dated as of March 29, 2010 (collectively, the “Agreement”) and desire to amend the Agreement as provided in this Amendment;

WHEREAS, the parties desire to amend the terms of the Agreement;

NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

l.    Amendment of Agreement.  The following amendments to the Agreement are hereby made:
(a) Section 1.1 of the Supply Agreement entitled “Term” is amended by adding
		
	      
	the following language:

“Shutterfly  and Fujifilm agree that as of the expiration of the current term of the Agreement  on March  29, 2013,  the  Agreement  shall  renew  for  a period  from March 30, 2013 through August 31, 2015.”

(b) Section 2(a) of the Supply Agreement entitled “Paper and Chemistry” is amended      by adding the following language at the end of such section:

“Reference is made to that certain Fulfillment Agreement between Shutterfly and
Fujifilm dated as of June 23, 2007 as amended on September 1, 2008, March 29,
20l0 and August _, 2012 (the “Fulfillment Agreement”).  If from the Amendment Effective Date on, Shutterfly continuously  sends at least [*] of its U.S.-based fulfillment of silver halide prints to Fujifilm pursuant to the terms of the Fulfillment Agreement, the prices for Paper and Chemistry will be limited to a [*] increase on March 30, 2013 and another [*] increase on March 30, 2014.  If Shutterfly and its affiliates do not continuously send at least [*] of all of its U.S.-based fulfillment of silver halide prints to Fujifilm during the Term, Fujifilm may in its discretion increase the prices for Paper and Chemistry by more than [*] at any time on or after March 30, 2013.  For purposes of this Agreement, the term “continuously” means that the monthly number of Shutterfly's U.S-based silver halide prints which are sent to Fujifilm must be at least equal to [*] of all silver halide prints that are ordered through Shutterfly and its affiliates during the same calendar month. If Shutterfly falls below the required minimum of [*] of all silver halide 

1

prints sent to Fuji film in any particular calendar month during the Term, Shutterfly may make up the difference in the following calendar month during the Term by increasing the volume of silver halide prints sent to Fujifilm during such calendar month in order to make up the volume difference from the previous calendar month.

 If Fujifilm increases prices for Paper and Chemistry by more than the permitted
[*] increments described in this Section 2(a), Shutterfly may purchase Paper and/or Chemistry from vendors other than Fujifilm.  For purposes of clarity, the current prices for Paper and Chemistry as of the Amendment Effective Date are set forth in Exhibit B included in Amendment No. 1 to the Supply Agreement, and the increased prices for Paper and Chemistry beginning on March 30, 2013 (assuming a [*]% increase) are attached to this Amendment as Exhibit B.”

2.     Survival of Terms.  Except as otherwise amended in this Amendment, all provisions of the Agreement shall remain in full force and effect.

3.     Counterparts. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

4.     Severability.  If one or more provisions of this Amendment are held to be unenforceable under applicable law, such provision shall be excluded from this Amendment and the balance of the Amendment shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

IN WITNESS WHEREOF, the parties have executed this Amendment No. 2 as of the Amendment Effective Date.

SHUTTERFLY, INC.                FUJIFILM NORTH AMERICA
CORPORATION

Signature: /s/ Charlotte Falla____________        Signature: /s/ Go Miyazaki_____________

Name (Print) Charlotte Falla            Name (Print) Go Miyazaki

Title: VP Legal & General Counsel            Title:    President

Date: 9/11/12                    Date: 8/31/12    

2

EXHIBIT B
CONFIDENTIAL SHUTTERFLY.COM

CHEMICAL PRICES
	
						
	Fujifilm Material #
	Fujifilm Description
	Invoice Unit
	Unit Makes/Contains
	Shipping Configuration
	Invoice Net

	[*]
	[*]
	Bottle
	100 Tablets
	BT [Each]
	[*]

	[*]
	[*]
	Carton
	2 x 111/125 M2
	CAR [Each]
	[*]

	[*]
	[*]
	Carton
	2 x 3.7 L Mix
	CAR [Carton Each]
	[*]

	[*]
	[*]
	Carton
	2 x 3.7 L Mix
	CAR [Carton Each]
	[*]

	
						
	[*]
	[*]
	1 Gallon Bottle
	 
	 
	[*]

	[*]
	[*]
	55 Gallon Drum
	7,040 Gallons
	DR [4 Drums/Pallet]
	[*]

	[*]
	[*]
	55 Gallon Drum
	212 Gallons
	DR [4 Drums/Pallet]
	[*]

	[*]
	[*]
	55 Gallon Drum
	220 Gallons
	DR [4 Drums/Pallet]
	[*]

	[*]
	[*]
	55 Gallon Drum
	220 Gallons
	DR [4 Drums/Pallet]
	[*]

COLOR PAPER PRICES
	
						
	Fujifilm Material #
	Fujifilm Description
	Invoice Unit
	Unit Makes/Contains
	Shipping Configuration
	Invoice Net

	[*]
	[*]
	ROL
	2 ROL per Carton
	84 ROL per Pallet
	[*]

	[*]
	[*]
	ROL
	2 ROL per Carton
	84 ROL per Pallet
	[*]

	[*]
	[*]
	ROL
	Bulk (no   Carton)
	54 ROL per Pallet
	[*]

	[*]
	[*]
	ROL
	Bulk (no   Carton)
	54 ROL per Pallet
	[*]

	[*]
	[*]
	ROL
	Bulk (no   Carton)
	63 ROL per Pallet
	[*]

	[*]
	[*]
	ROL
	Bulk (no   Carton)
	63 ROL per Pallet
	[*]

	[*]
	[*]
	ROL
	2 ROL per Carton
	60 ROL per Pallet
	[*]

	[*]
	[*]
	ROL
	2 ROL per Carton
	60 ROL per Pallet
	[*]

	[*]
	[*]
	ROL
	1 ROL per Carton
	24 ROL per Pallet
	[*]

3September 30, 2012 10-Q  Exhibit 10.1

Exhibit 10.1 

SEVERANCE AND GENERAL RELEASE AGREEMENT

This Agreement (the "Agreement") is entered into by and among Jeff Wilson ("Employee") and MicroVision, Inc.
("MicroVision," "Employer" or "the Company") to describe the terms of Employee's separation from
employment with the Company.  For the consideration described herein, Employee and the Company agree as follows:

	TRANSITION/SEPARATION FROM EMPLOYMENT

Employee shall resign from his position as Chief Financial Officer of MicroVision, which shall be announced on or about
September 20, 2012.  He shall continue to work as Chief Financial Officer until MicroVision's 10Q is filed for Q3 of 2012,
expected to be in early November 2012 ("Transition Period").  After the end of the Transition Period the Company
may terminate the  Employee's employment with MicroVision without notice.  The Employee may terminate his employment upon the
filing of the Company's 10Q for Q3 of 2012 or later upon thirty (30) days' notice to the Company.  If Employee voluntarily resigns,
Employee shall only be eligible for the Severance Payments and other benefits of this Agreement if he remains employed through the
Transition Period and provides thirty (30) days' notice required in this section.  The final date of employment shall be considered the
"Separation Date."  

	DUTIES DURING THE TRANSITION PERIOD

2.1   During the Transition Period, Employee shall continue to work in his capacity as Chief Financial Officer, performing duties normally
associated with such position; transitioning his duties to others as requested; and performing other duties as requested.

2.2   During the Transition Period and until the Separation Date, Employee will receive the same salary and be able to participate in the
same benefits that he earned as of September 1, 2012.

	POTENTIAL TERMINATION DURING THE TRANSITION PERIOD

During the Transition Period, Employee's employment shall remain terminable at will.  MicroVision may also terminate
Employee's employment at any time without notice based on his failure to satisfactorily complete his assigned duties or any other
conduct potentially harmful to MicroVision in the sole judgment or discretion of MicroVision.  In the event that Employee resigns or
terminates his employment voluntarily other than as provided in Section 1 during the Transition Period, or MicroVision terminates
employment as outlined above, on the effective date of such termination MicroVision shall have no further obligation under this
Agreement other than to pay Employee his salary and reimburse any expenses he incurs prior to the effective date of the termination.
The effective date of such termination shall be the Separation Date under this Agreement.  In the event that Microvision terminates
Employee's employment during the Transition Period for any reason other than Employee's conduct or failure to satisfactorily perform
his assigned duties as described above, MicroVision shall pay Employee any remaining salary through October 31, 2012, plus
the Severance Payments and other benefits described in paragraph 5.

                                               1

	FINAL WAGES, ACCRUED VACATION, EXPENSE REIMBURSEMENT

4.1   Final Wages.The Company will pay Employee his regular monthly salary and provide employment benefits
through the Separation Date.

4.1   Accrued Vacation, Reimbursement for Expenses Incurred.  With the next regularly-scheduled payroll after the Separation
Date, the Company shall pay Employee for any earned but unused vacation.  The Company shall reimburse Employee for reasonable
and necessary business expenses incurred before the Separation Date to the extent such expenses are reimbursable under the
Company's normal expense reimbursement policies and procedures, and provided that receipts or other acceptable documentation for
such expenses are submitted in accordance with standard Company policy.  

	SEVERANCE PAY AND SEVERANCE BENEFITS

5.1   Severance Payment.  Provided Employee remains employed by MicroVision through the Transition Period and until
the Separation Date, the Company agrees to pay Employee an amount equal to nine months of his regular base salary in effect as of
the Separation Date (totaling $165,345.00)as a severance pay (the "Severance Payments").  The Severance Payments
shall be paid in equal installments in conjunction with the Company's regular payroll beginning with the next regularly scheduled payroll
after the later of the Effective Date of this Agreement and the Separation Date.  The Severance Payment shall be subject to withholding
and deduction for payroll taxes and other deductions as are required by federal and state law.  

5.2   Stock Awards and Options.  Upon approval of MicroVision's Board of Directors or its designee, provided Employee meets
all of his obligations hereunder, as of the Separation Date, 15,185 unvested restricted stock units  awarded to Employee by grants
A0002983 (1,435 shares) and A0003014 (13,750 shares) shall immediately vest.  In addition, effective as of the Separation Date,
employee hereby forfeits all of his rights to the stock options listed on Exhibit A.  MicroVision shall not have any obligations to pay the
Severance Payments until such time as this Agreement is effective and Employee's wife has relinquished in writing any rights she may
have in the stock options listed on Exhibit A.  All other unvested stock options shall be forfeited in accordance with their terms and the
terms of the 2006 Incentive Plan.  Employee's rights to the vested stock and options shall be governed by applicable grants and 2006
Incentive Plan, except as specifically stated in this paragraph.

	GROUP MEDICAL BENEFITS COVERAGE

After the Separation Date, Employee and/or his dependents shall be eligible to elect a temporary extension of group health
plan coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as subsequently amended
("COBRA").

	OTHER BENEFITS PLANS

After the Separation Date, Employee's rights and obligations with respect to all other benefits plans, including any stock
options, 401(k), disability and life insurance, shall be governed by the terms of all applicable plans and laws.   

                                               2

	VALID CONSIDERATION

Employee agrees and acknowledges that continued employment and the Severance Payments and other benefits provided by
the Company under this Agreement are not required by any other policy or procedure or contractual obligation of the Company and are
offered by the Company solely as consideration for this Agreement.

	FULL PAYMENT

Employee agrees that, with the payment of his final pay through the Separation Date, the Company will have paid to
Employee all compensation due and owing to Employee arising out of Employee's employment with the Company, including, but not
limited to, base pay, bonus, commission, and any other compensation, except any Severance Payments that may be due under this
Agreement.

	GENERAL RELEASE OF CLAIMS

10.1   Release.In consideration of the company's agreement to extend Employee's employment through the Transition
Period as outlined in this Agreement and provision of severance pay and other benefits, employee hereby releases the company, any
company-sponsored employee benefit plan in which employee participates, and any of their employees, agents, officers, directors,
shareholders, insurers, successors and assigns (and their respective marital communities), from all claims, demands, actions or causes
of action of any kind or nature whatsoever which employee may now have or may ever have had against any of them, whether
such claims are known or unknown including claims under local, state, federal or common law with respect to any of the following:
(a) breach of contract; (b) harassment, discrimination, retaliation, or constructive or wrongful discharge; (c) lost
wages, lost employee benefits, physical and personal injury, stress, mental distress, or impaired reputation; (d) claims arising
under the Age Discrimination in Employment Act, Title VII of the Civil Rights Act, the Equal Pay Act, Americans with Disabilities Act,
Family and Medical Leave Act, the Workers Adjustment and Retraining Notification Act, the Older Workers Benefits Protection Act, or
any other federal, state or local laws or regulations governing the employer-employee relationship or prohibiting employment
discrimination; (e) attorneys' fees; and (f) any other claim arising from or relating to employee's employment with the company and/or
employee's separation from employment.  Employee acknowledges that he may hereafter discover facts different from or in addition to
those which employee now knows or believes to be true with respect to such claims; nevertheless, employee agrees that the foregoing
release shall be and remain effective in all respects.

10.2   No Action on Released Claims.Employee agrees not to sue or pursue any court or administrative action against the
Company, or any of its employees, agents, officers, directors or shareholders, regarding any claims released herein or otherwise arising
from Employee's employment with the Company or Employee's separation from employment, except with respect to any breach by the
Company of its obligations under this Agreement.  If any government agency brings any claim or conducts any investigation against
Employer, nothing in this Agreement forbids Employee from cooperating in such proceedings or providing truthful testimony.  Employee
may file an administrative charge of discrimination with the Equal Employment Opportunity Commission, but by this Agreement,
Employee waives and agrees to relinquish any damages or other individual relief that may be awarded as a result of any such
proceedings.  

                                               3

	REVIEW AND REVOCATION PERIOD; EFFECTIVE DATE

Employee has been given 21 days to review this agreement (the "Review Period") and is encouraged to consult an attorney to
review its terms.  In the event that Employee signs this Agreement before expiration of this 21-day period, he waives all remaining time
to consider this Agreement.  By signing this Agreement, Employee acknowledges that (a) the Company has advised Employee to
consult with counsel, and (b) Employee has either consulted an attorney or has voluntarily elected not to do so.  Employee may revoke
this Agreement by providing written notice of the decision to revoke the Agreement to the Company at the following address: 6222
185th Ave NE, Redmond, WA  98052 (Attn: Wayne Evans) within seven days after the date Employee signed this Agreement.  This
Agreement will become effective and enforceable on the first day after the seven-day revocation period expires (the "Effective
Date").

	RETURN OF COMPANY PROPERTY

On or before the Separation Date, and as a condition of receiving Severance Payment and other benefits, Employee shall
return to the Company all Company-owned communication devices, equipment and property and any documents, compilations of data
or other files or records of any nature, or any copy or reproduction thereof, that belong to the Company. Employee agrees that he will
not, for any purpose, attempt to access or use any Company computer or computer network or system and will disclose to the
Company all passwords necessary to enable the Company to access all information which is password-protected on any of its
computer equipment or on its computer network or system.

	CONFIDENTIALITY, NON-DISPARAGEMENT.  

Employee agrees to protect and maintain the confidentiality of all information in his possession related to the Company, including
information about is finances, technology, employees, sales or prospective sales, customers and all other information not publicly
known or available.  Employee agrees to abide by, and hereby reaffirms, his obligations contained in the MicroVision, Inc.
Confidentiality and Inventions Agreement that he has previous signed. Employee agrees that he will not disparage or criticize the
Company, its Board of Directors, management, products or services and will not otherwise do or say anything that could disrupt the
morale of the employees of the Company or interfere in any way with the Company's business interests, its reputation or any of its
customer or other business relationships.  Specifically, but without limiting the generality of the foregoing, Employee agrees that he will
not disparage the Company to potential future investors or otherwise interfere in any manner with the Company's efforts to obtain
financing in the future.  Nothing in this Agreement shall prohibit truthful testimony in any proceeding.

	EMPLOYEE COOPERATION.

Employee agrees to cooperate with the Company hereafter with respect to all matters arising during or related to his
employment, including but not limited to all matters in connection with any governmental investigation, litigation or regulatory or other
proceeding which may have arisen or which may arise following the signing of this Agreement.  The Company will reimburse
Employee's out-of-pocket expenses incurred in complying with Company requests hereunder, provided such expenses are authorized
by the Company in advance.  

                                               4

	NO ADMISSION

Employee and Company understand and acknowledge that neither the Severance Payment and other benefits offered nor the
execution and delivery of this Agreement by the Company constitutes an admission by either party to (i) any breach of an
agreement (ii) any violation of a federal, state or local statute, regulation or ordinance, or (iii) any other wrongdoing by
either Company or Employee.

	INFORMED AND VOLUNTARY AGREEMENT

Employee declares that Employee has read and fully understands the terms of this Agreement, and its significance and
consequence.  Employee understands and acknowledges that, except as specifically reserved herein, in exchange for the Severance
Payment and other benefits, Employee is waiving and giving up every possible claim arising out of employment with the Company
and/or the termination of that employment.

	GOVERNING LAW/SEVERABILITY

The parties acknowledge that this Agreement shall be interpreted under and enforced by and consistent with the laws of the
State of Washington. The provisions of this Agreement are severable, and if any part of it is found to be unlawful or unenforceable, the
other provisions of this Agreement shall remain fully valid and enforceable to the maximum extent consistent with applicable law.

	ENTIRE AGREEMENT

This is the entire Agreement between Employee and the Company.  The Company has not made any promises to Employee
other than those included within this Agreement.  This Agreement may be signed in counterparts.  Facsimile signatures are to be given
the same force and effect as original signatures.

PLEASE READ CAREFULLY.  THIS AGREEMENT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN EMPLOYMENT CLAIMS.

	
EMPLOYEE

Signature:________________________

Printed Name:_____________________

Date:____________________________
	
MICROVISION, INC. 

By_______________________________

Title______________________________

Date:_____________________________

                                               5

Exhibit A

	
Type of Grant
	
Grant No.
	
Date of Grant
	
Total No. of Shares
	
Exercise Price
	
Total Vested
	
Total Unvested

	
  
	
  
	
  
	
  
	
  
	
  
	
  

	
Stock Option
	
A0001437
	
4/5/2006
	
1,250
	
$27.44 
	
1,250
	
  

	
Stock Option
	
A0002072
	
4/19/2007
	
12,500
	
$35.12 
	
12,500
	
  

	
Stock Option
	
A0002073
	
4/19/2007
	
952
	
$35.12 
	
952
	
  

	
Stock Option
	
A0002973
	
4/26/2010
	
2,125
	
$27.28 
	
2,125
	
  

	
Stock Option
	
A0002978
	
4/26/2010
	
3,347
	
$27.28 
	
1,673
	
1,674

	
Stock Option
	
AR001566
	
5/17/2006
	
10,828
	
$22.16 
	
9,829
	
  

                                               6

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