Ms. Julie McCann Mulligan
554 Beach 133rd Street
Belle Harbor, New York 11694
Dear Julie:
This letter will serve as our understanding of the services you will be
rendering as an employee in the position of Personality Expert Designer for the
1-800-Flowers.Com brand (the "Company") for the Company's FY'09 .
Responsibilities
Your responsibilities will include (i) develop and maintain an exclusive
product line for the Company for FY'09 under the name of "Designs by Julie
Mulligan", or any other name agreed to by you and the Company (the "Line").
Development of the Line includes not only the products themselves, but also any
applicable product descriptions, photography, content and copy related to the
products. The products, their descriptions, content and copy are subject to the
final approval of the Company. It is anticipated that there will be
approximately 6-8 products from the Line on the 1800flowers.com web site at any
one given time; (ii) act as a Company spokesperson at marketing, gift shows
brand, public relations and media events (up to a maximum of 12 per fiscal year)
and shall support the Company in marketing projects (i.e. appear in video
advertising and/or programming); (iii) you will work with the Marketing/PR team
and assist them with generating ideas and concepts, researching information
required for particular storylines, provide detailed "step by steps" for
featured products; sourcing all hard goods required for all filmed/taped
segments and photo shoots; provide art direction and styling for all photo
shoots, stay abreast of all current trends, not only in the floral industry, but
also in home decor, fashion, weddings/event planning, crafts and gift giving;
and (iv) in addition you will perform the duties customarily performed in
persons in the position for which you are employed and such other duties as from
time to time may be prescribed by the Company.
It is agreed that all products designed and developed by you will be made
available for sale once all varieties are confirmed as available by
Merchandising Operations and Planning. All your products must meet or surpass
the quality standards designated by QA and the products must successfully pass
ship testing through the Vendor Relations group. Furthermore, notwithstanding
anything to the contrary contained herein, the Company has the sole discretion
as to which products you design it chooses to use and the manner and extent of
the marketing of any such products. All products developed shall be and remain
the property of the Company
Compensation
Base salary: $130,000 (annualized)
Benefits: Except as otherwise provided herein, you are eligible to continue to
participate in all Company benefit programs subject to the terms of
each plan. You are eligible to participate in the Company medical,
dental, life insurance, and short term and long term disability
commencing. You are eligible to participate in the Company 401(k)
plan. You are eligible for three (3) weeks vacation accruing pursuant
to the Company's policy.
Floral Sales Commission": For sales of floral products under the Line you will
be paid a quarterly commission (the "Quarterly Commission") based upon the
following formula:
I. The Line---Direct Shipped Products:
A) 7% of Net Sales of the products sold under the Line.
II. The Line---Florist Fulfilled Products:
A) 2.5% of Net Sales of the products sold under the Line.
For the purposes of this Agreement, Net Sales means the gross sales
price of the products of the Line sold less any and all taxes,
service, shipping, relay and handling charges, rebates, discounts,
gift certificates, promotional offers, and credit card processing
fees. Any commission earned shall be paid on a quarterly basis and
such payment shall be accompanied by a report showing how the
commission was calculated for said quarter. The Company and you may
mutually agree on arrangements for more frequent reporting on the
sales generated under the Line.
For FY'09, the Company will pay to you minimum commissions of
$150,000. The Quarterly Commission provided for herein is in lieu of
any cash bonus programs that the Company may make available to its
employees. For instance, you will not be participating in the
Company's Sharing Success Program.
Equity: As an employee you may be eligible for stock option or restricted stock
grants subject to the approval of the Compensation Committee of the Board
of Directors pursuant to the terms of the Company's 2003 Long Term
Incentive and Share Award Plan (the "Plan"). All future stock option and
restricted stock awards are at the discretion of the Compensation
Committee.
We are committed to maintaining a competitive position in the employment
marketplace. However, it is agreed that neither the terms of this letter, your
acceptance of same, nor the maintenance of personnel policies, procedures and
benefits creates a contract of employment or a guarantee of any length of
employment or specific benefits. Your employment with the Company is "at-will",
meaning that you retain the option, as does the Company, to end your employment
at any time, for any reason or for no reason.
If, however, your employment is terminated then you will be entitled to
base salary through the date of termination and any other commission amounts
earned, accrued, due and owing, but not yet paid as of the date of your
termination.
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Julie, we look forward to the continuation of our relationship together and
a prosperous fiscal year.
Very truly yours,
/s/ Peter Clarke
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Peter Clarke
SVP Product Development & Merchandising
Agreed to:
/s/ Julie McCann Mulligan
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Julie McCann Mulligan