Attached files
| file | filename |
|---|---|
| EX-10.2 - BLUEFLY INC | k207519_ex10-2.htm |
| EX-10.4 - BLUEFLY INC | k207519_ex10-4.htm |
| EX-10.1 - BLUEFLY INC | k207519_ex10-1.htm |
| EX-10.3 - BLUEFLY INC | k207519_ex10-3.htm |
| EX-10.5 - BLUEFLY INC | k207519_ex10-5.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of
Report (Date of Earliest Event Reported): January 4, 2011
BLUEFLY,
INC.
(Exact
Name of Registrant as Specified in its Charter)
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Delaware
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001-14498
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13-3612110
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(State or Other Jurisdiction of
Incorporation)
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(Commission File Number)
|
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(I.R.S. Employer
Identification Number)
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42 West 39th Street, New
York, New York 10018
(Address
of Principal Executive Offices) (Zip Code)
(212)
944-8000
(Registrant's
Telephone Number, Including Area Code)
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
Item
1.01. Entry into a Material Definitive Agreement.
On
January 4, 2011, Bluefly, Inc. (the “Company”) and A+D
Labs LLC (“A+D
Labs,” and, together with the Company, the “Members”) entering
into a Limited Liability Company Operating Agreement (the “Operating Agreement”)
in connection with the formation of Eyefly LLC (“Eyefly”), a
newly-formed Delaware limited liability company which is initially owned 52% by
the Company, and 48% by A+D Labs. Eyefly was formed for the purposes of
developing and operating an e-commerce Web site and related online and mobile
applications focused on selling fashionable prescription eyewear directly to
consumers.
Pursuant
to the Operating Agreement, the Members made an aggregate of $700,000 of initial
capital contributions ($364,000 from the Company and $336,000 from A+D Labs) and
agreed to make an additional $600,000 of capital contributions ($312,000 from
the Company and $288,000 from A+D Labs) as necessary. In addition, both
the Company and an affiliate of A+D Labs entered into Management Services
Agreements with Eyefly (the “Management Services
Agreements,” and, together with the Operating Agreement, the “Eyefly Agreements”)
pursuant to which they each agreed to provide certain services to Eyefly on a
cost basis.
Under the
terms of the Operating Agreement, the Company is entitled to appoint two members
to Eyefly’s Board of Managers, and A+D Labs is entitled to appoint one member,
subject in each case to certain ongoing ownership requirements. Decisions
are generally made by a majority of the Board of Managers, provided that the
unanimous approval of the Board of Managers is required for (a) any change to
Eyefly’s primary line of business, (b) the issuance of additional equity Units
above a certain agreed upon threshold, unless each of A+D Labs and the Company
is permitted to participate in such issuance on a pro rata basis, (c) a sale of
the company transaction, subject to an exception for a sale on or after the four
year anniversary of formation at a minimum valuation that exceeds a specified
multiple of adjusted EBITDA, (d) transactions between Eyefly and either the
Company or A+D Labs, subject to certain exceptions or (e) approval of any annual
marketing budget that has an ad to sales ratio in excess of certain agreed-upon
thresholds.
The
Operating Agreement contains customary provisions relating to tax allocations
and distributions, confidentiality, indemnification, and restrictions on
transfer of equity in Eyefly, including (without limitation) a right of first
refusal and co-sale rights. In addition, the Operating Agreement provides
the Company with an option (the “Call Option”) to
purchase A+D Labs’ equity in Eyefly on or after the four year anniversary of
formation at a valuation based on a specified multiple of adjusted EBITDA.
In the event that the Company exercises the Call Option, A+D Labs has the option
to receive the purchase price for equity in shares of the Company’s Common
Stock, provided that the total number of shares issued to A+D Labs pursuant to
such option cannot exceed 4,918,856 shares (which is less than 20% of the
outstanding shares of the Company’s Common Stock as of the date of the Operating
Agreement).
In
connection with the formation of Eyefly and the Company’s entry into the Eyefly
Agreements, the Company and Wells Fargo Bank, National Association (“Wells Fargo”)
entered
into: (a)
a consent and amendment to the Company’s Loan and Security Agreement with Wells
Fargo, pursuant to which Wells Fargo agreed to the Company’s investment in
Eyefly (the “Consent
and Amendment”); and (b) a pledge agreement pursuant to which the Company
granted Wells Fargo a security interest in the Company’s equity interest in
Eyefly (the “Pledge
Agreement,” and, together with the Consent and Amendment, the “Wells Fargo
Agreements”).
The
foregoing description is qualified in its entirety by reference to the Eyefly
Agreements and the Wells Fargo Agreements, which are being filed as exhibits to
this Current Report on Form 8-K.
Item
9.01. Financial Statements and Exhibits.
(d) Exhibits
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10.1
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Operating
Agreement of Eyefly LLC, dated as of January 4,
2011.
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10.2
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Management
Services Agreement, dated as of January 4, 2011, by and between Eyefly LLC
and Bluefly, Inc.
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10.3
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Management
Services Agreement, dated as of January 4, 2011, by and between Eyefly LLC
and Tworoger Associates, Ltd.
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10.4
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Eighth
Amendment to Loan and Security Agreement, dated as of January 4, 2011, by
and between Bluefly, Inc. and Wells Fargo Bank, National
Association
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10.5
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Pledge
Agreement, dated as of January 4, 2011, by and between Bluefly, Inc. and
Wells Fargo Bank, National
Association
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SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Dated: January
10, 2011
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BLUEFLY,
INC.
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By:
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/s/ Kara B. Jenny
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Name: Kara
B. Jenny
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Title: Chief
Financial Officer
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INDEX
TO EXHIBITS
Exhibit
No.
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10.1
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Operating
Agreement of Eyefly LLC, dated as of January 4,
2011.
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10.2
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Management
Services Agreement, dated as of January 4, 2011, by and between Eyefly LLC
and Bluefly, Inc.
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10.3
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Management
Services Agreement, dated as of January 4, 2011, by and between Eyefly LLC
and Tworoger Associates, Ltd.
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10.4
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Eighth
Amendment to Loan and Security Agreement, dated as of January 4, 2011, by
and between Bluefly, Inc. and Wells Fargo Bank, National
Association
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10.5
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Pledge
Agreement, dated as of January 4, 2011, by and between Bluefly, Inc. and
Wells Fargo Bank, National
Association
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