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8-K</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CURRENT
REPORT</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to Section 13 or 15(d) of</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
Securities Exchange Act of 1934</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
of Report (Date of Earliest Event Reported): November 18, 2008</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
Name of the Registrant as Specified in Its Charter)</font></div>
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or Other Jurisdiction of Incorporation)</font></div>
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      File Number)</font></div>
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      </font></td>
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      Employer Identification No.)</font></div>
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      </font></td>
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      Bridge Parkway, Suite 101,</font></div>
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610-5200</font></div>
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Telephone Number, Including Area Code)</font></div>
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Name or Former Address, If Changed Since Last Report)</font></div>
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    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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 (see General Instruction A.2. below):</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[&#160;&#160;&#160;]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)</font></div>
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    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[&#160;&#160;&#160;]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)</font></div>
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    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[&#160;&#160;&#160;]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2)</font></div>
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    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[&#160;&#160;&#160;]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))</font></div>
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      5.02.</font></div>
              </td>
              <td width="1324">
                <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Departure
      of Directors or Certain Officers; Election of Directors; Appointment of
      Certain Officers; Compensatory Arrangements of Certain
      Officers.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 53px">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font></div>
              </td>
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                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      November 18 and 21, 2008, the Compensation Committee (the "Committee") of
      the Board of Directors of Shutterfly, Inc. (the "Company") took the
      following actions relating to the&#160;Company's Chief Executive
      Officer:</font></div>
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            </tr>
        </table>
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      <div align="center">
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Committee established a new annual base salary level of $485,000 for Jeffrey T.
Housenbold, the Company's Chief Executive Officer, effective as of November 18,
2008, and established an annual cash bonus target for Mr. Housenbold of 100% of
Mr. Housenbold&#8217;s base salary for fiscal 2009.&#160;&#160;Ten percent (10%) of
the target bonus is guaranteed and will be paid quarterly in the following
amounts:&#160;&#160;$9,700 at the end of each of the first three quarters, and
$19,400 at the end of the fourth quarter of fiscal 2009.&#160;&#160;The balance
of the target bonus&#160;($436,500) will be paid quarterly if the Company
achieves certain&#160;financial goals to be established by the Board for fiscal
2009.&#160;&#160;Mr. Housenbold is eligible to receive, at the discretion of the
Committee, up to 125% of the target bonus in the event the Company exceeds its
financial goals.</font></div>
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    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
addition, the Committee approved the award to Mr. Housenbold of 400,000
restricted stock units (&#8220;RSUs&#8221;), of which 280,000 will vest and be settled
annually over three years, 1/3 on each of November 21, 2009, November 21, 2010
and November 21, 2011, and the remaining 120,000 RSUs will be performance
based.&#160;&#160;The performance based RSUs will be awarded to the extent that
the Company achieves certain quarterly financial goals to be established by the
Board for fiscal 2009, with 20% of the performance based RSUs to be awarded
based on achievement of the financial goals for each of the first three quarters
and 40% to be awarded based on achievement of the financial goals for the fourth
quarter of fiscal 2009.&#160;&#160;To the extent earned, these performance based
RSUs will vest and be settled annually over three years, 1/3 on each of February
15, 2010, February 15, 2011 and February 15, 2012.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Committee also approved amendments to Mr. Housenbold&#8217;s employment agreement to
provide that:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a) in the event of Mr.
Housenbold&#8217;s termination without cause or constructive termination, the vesting
of all of his then outstanding stock options and RSUs will accelerate by 12
months, and all of his then vested stock options will remain exercisable until
the earlier of 24 months following the date of his termination or the expiration
date of the option; and</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b) in the event of Mr.
Housenbold&#8217;s termination without cause or constructive termination within 12
months following a change of control of the Company, all of his then outstanding
stock options and RSUs will accelerate in full, and all of his then vested
options will remain exercisable until the earlier of 24 months following the
date of his termination or the expiration date of the
option.</font></font></div><br>
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      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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 thereunto
duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" colspan="3" valign="bottom" width="69%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">SHUTTERFLY,
      INC.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="middle" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td colspan="2" valign="top" width="95%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td valign="top" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:</font></div>
            </td>
            <td colspan="2" valign="top" width="95%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;/s/
      Mark J. Rubash </font>

              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Mark
      J. Rubash</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Senior
      Vice President &amp; Chief Financial
Officer</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;&#160;November
24, 2008</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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{"company-data": {"conformed-name": "SHUTTERFLY INC", "cik": "0001125920", "assigned-sic": "7384", "irs-number": "000000000"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-33031", "film-number": "081210804"}, "business-address": {"street1": "2800 BRIDGE PARKWAY", "street2": "STE 101", "city": "REDWOOD CITY", "state": "CA", "zip": "94065"}}
sfly8-k_ceocomp.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): November 18, 2008
Shutterfly,
Inc.
(Exact
Name of the Registrant as Specified in Its Charter)
Delaware
(State
or Other Jurisdiction of Incorporation)
001-33031
99-3330068
(Commission
      File Number)
(IRS
      Employer Identification No.)
2800
      Bridge Parkway, Suite 101,
Redwood
      City, California
94065
(Address
      of Principal Executive Offices)
(Zip
      Code)
(650)
610-5200
(Registrant's
Telephone Number, Including Area Code)
(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 (see General Instruction A.2. below):
[   ]
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)
[   ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item
      5.02.
Departure
      of Directors or Certain Officers; Election of Directors; Appointment of
      Certain Officers; Compensatory Arrangements of Certain
      Officers.
(e)
On
      November 18 and 21, 2008, the Compensation Committee (the "Committee") of
      the Board of Directors of Shutterfly, Inc. (the "Company") took the
      following actions relating to the Company's Chief Executive
      Officer:
The
Committee established a new annual base salary level of $485,000 for Jeffrey T.
Housenbold, the Company's Chief Executive Officer, effective as of November 18,
2008, and established an annual cash bonus target for Mr. Housenbold of 100% of
Mr. Housenbold's base salary for fiscal 2009.  Ten percent (10%) of
the target bonus is guaranteed and will be paid quarterly in the following
amounts:  $9,700 at the end of each of the first three quarters, and
$19,400 at the end of the fourth quarter of fiscal 2009.  The balance
of the target bonus ($436,500) will be paid quarterly if the Company
achieves certain financial goals to be established by the Board for fiscal
2009.  Mr. Housenbold is eligible to receive, at the discretion of the
Committee, up to 125% of the target bonus in the event the Company exceeds its
financial goals.
In
addition, the Committee approved the award to Mr. Housenbold of 400,000
restricted stock units ("RSUs"), of which 280,000 will vest and be settled
annually over three years, 1/3 on each of November 21, 2009, November 21, 2010
and November 21, 2011, and the remaining 120,000 RSUs will be performance
based.  The performance based RSUs will be awarded to the extent that
the Company achieves certain quarterly financial goals to be established by the
Board for fiscal 2009, with 20% of the performance based RSUs to be awarded
based on achievement of the financial goals for each of the first three quarters
and 40% to be awarded based on achievement of the financial goals for the fourth
quarter of fiscal 2009.  To the extent earned, these performance based
RSUs will vest and be settled annually over three years, 1/3 on each of February
15, 2010, February 15, 2011 and February 15, 2012.
The
Committee also approved amendments to Mr. Housenbold's employment agreement to
provide that:
(a) in the event of Mr.
Housenbold's termination without cause or constructive termination, the vesting
of all of his then outstanding stock options and RSUs will accelerate by 12
months, and all of his then vested stock options will remain exercisable until
the earlier of 24 months following the date of his termination or the expiration
date of the option; and
(b) in the event of Mr.
Housenbold's termination without cause or constructive termination within 12
months following a change of control of the Company, all of his then outstanding
stock options and RSUs will accelerate in full, and all of his then vested
options will remain exercisable until the earlier of 24 months following the
date of his termination or the expiration date of the
option.
SIGNATURES
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 thereunto
duly authorized.
SHUTTERFLY,
      INC.
By:
/s/
      Mark J. Rubash
Mark
      J. Rubash
Senior
      Vice President & Chief Financial
Officer
Date:  November
24, 2008