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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">UNITED
STATES</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">SECURITIES
AND EXCHANGE COMMISSION</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">WASHINGTON,
D.C. 20549</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: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
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        <hr style="COLOR: black" align="center" noshade size="1" width="15%">
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    <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="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">FORM
8-K</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: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
      <hr style="COLOR: black" align="center" noshade size="1" width="15%">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
Report</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><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; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Securities Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
of Report (Date of earliest event reported):&#160;&#160;January 6,
2010</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: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">BLUEFLY,
INC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(EXACT
NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)</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: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">DELAWARE</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State or
other jurisdiction of incorporation)</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="48%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">001-14498</font></div>
            </td>
            <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="48%" style="BORDER-BOTTOM: black 2px solid">
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            </td>
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          <tr>
            <td valign="top" width="48%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Commission
      File Number)</font></div>
            </td>
            <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="48%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(I.R.S.
      Employer Identification Number)</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="48%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="48%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td valign="top" width="48%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">42
      West 39<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">th</font>
      Street, New York, New York</font></div>
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      </font></td>
            <td valign="bottom" width="48%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10018</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="48%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Address
      of principal executive offices)</font></div>
            </td>
            <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="48%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Zip
      Code)</font></div>
            </td>
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    </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">Registrant&#8217;s
telephone number, including area code: <font style="DISPLAY: inline; TEXT-DECORATION: underline">(212)
944-8000</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="80%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
      Applicable</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
      name or former address, if changed since last
  report)</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">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:</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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            </td>
            <td align="left">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></font></div>
            </td>
          </tr>
      </table>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">Soliciting material
      pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></font></div>
            </td>
          </tr>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></font></div>
            </td>
          </tr>
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      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></font></div>
            </td>
          </tr>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</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">&#160;</div>
      </div>
    </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="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">Item 5.02 Departure of Directors or
Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.</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: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">(e) </font><font style="DISPLAY: inline; COLOR: #000000; TEXT-DECORATION: underline">Amendment to
Bonus Plan</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: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
January 6, 2010, the Compensation Committee (the &#8220;Committee&#8221;) of the Board of
Directors of Bluefly, Inc. (the &#8220;Company&#8221;) modified the cash bonus plan for
fiscal year 2009 (the &#8220;Bonus Plan&#8221;) it had previously approved in October 2009
to increase the contingent bonus levels which could be earned by Melissa
Payner-Gregor, the Company&#8217;s Chief Executive Officer, and Kara Jenny, the
Company&#8217;s Chief Financial Officer, if it is determined that the Company exceeded
the previously established adjusted EBITDA target levels for fiscal year 2009 by
certain specified amounts.&#160;&#160;As amended, the range of the contingent
bonus which may become payable to Ms. Payner under the Bonus Plan, based upon a
formula approved by the Committee, is between zero and $600,000.&#160;&#160;The
amount of the contingent bonus payable to Ms. Jenny, based upon the same
formula, is generally between 27% and 30% of the amount payable to Ms. Payner,
but not subject to a cap.&#160;&#160;The contingent bonus payments, if any, are
payable as soon as practicable following the availability of the Company&#8217;s
audited financial statements (but in no event later than March 15,
2010).</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: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Bonus
Plan, as approved in October 2009, provided for the payment of a $125,000 cash
bonus to Ms. Payner in October 2009, and cash bonuses of $75,000 to Ms. Payner
and $33,000 to Ms. Jenny if they remained with the Company at year
end.&#160;&#160;Those additional amounts were paid in January
2010.&#160;&#160;The Bonus Plan also provided for contingent bonus payments to
Ms. Payner and Ms. Jenny if the Company achieved specified adjusted EBITDA
target levels for fiscal year 2009.&#160;&#160;The range of the contingent
bonuses under the Bonus Plan was originally between zero and $180,000 for Ms.
Payner and between zero and $60,000 for Ms. Jenny, but&#160;&#160;was not in
limitation of additional discretionary bonuses for performance above the
specified target levels.</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: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Amendment to Ms. Payner&#8217;s
Employment Agreement</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: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
January 6, 2010, the Committee also approved an amendment to the Employment
Agreement (the &#8220;Payner Agreement&#8221;), dated as of November 14, 2006, between the
Company and Ms. Payner.&#160;&#160;Pursuant to the amendment, the Payner
Agreement will be modified to provide for:</font></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: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
      term of 36 months beginning on January 1, 2010 and to automatically renew
      for successive one-year terms unless the Company provides Ms. Payner
      written notice of its desire to renew the Payner Agreement at least 90
      days prior to the end of the then-current term, including any one year
      renewal term (the &#8220;Evergreen
Extension&#8221;);</font></div>
            </td>
          </tr>
      </table>
    </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: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">annual
      cost of living adjustments to Ms. Payner&#8217;s annual base salary under the
      Payner Agreement, based on adjustments to the United States Consumer Price
      Index, beginning on January 1,
2011;</font></div>
            </td>
          </tr>
      </table>
    </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: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
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            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">payment
      of an annual performance bonus equal to 60% of Ms. Payner&#8217;s annual base
      salary thereunder based upon the achievement of one or more targets to be
      set for each fiscal year by the Compensation Committee in its sole
      discretion, which bonus amount </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">shall be paid on an adjusted basis for achievement of 75% to 125%
of such targets, provided that such bonus shall not be in limitation of
additional discretionary bonuses; and</div>
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            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      immediate vesting of one-half of any unvested stock options granted to Ms.
      Payner by the Company which are outstanding as of the date of a change of
      control (as defined in the Payner Agreement) and have not yet vested, with
      the remaining one-half of such unvested stock options vesting on the
      earliest to occur of: (a) the scheduled vesting date and (b) 12 months
      from the date of the change of
control.</font></div>
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terms of the Payner Agreement will not be affected by the
amendment.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Amendment to Ms. Jenny&#8217;s
Employment Agreement</font></font></div>
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January 6, 2010, the Committee also approved an amendment to the Amended and
Restated Employment Agreement (the &#8220;Jenny Agreement&#8221;), dated as of March 19,
2008, between the Company and Ms. Jenny.&#160;&#160;Pursuant to the amendment,
the Jenny Agreement will be modified to provide for:</font></div>
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            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
      term of 36 months beginning on January 1, 2010 subject to an Evergreen
      Extension;</font></div>
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            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">an
      increase to Ms. Jenny&#8217;s annual base salary from $250,000 to $300,000;
      and</font></div>
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            <td style="WIDTH: 18pt">
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            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      immediate vesting of one-half of any unvested stock options granted to Ms.
      Jenny by the Company which are outstanding as of the date of a change of
      control (as defined in the Jenny Agreement) and have not yet vested, with
      the remaining one-half of such unvested stock options vesting on the
      earliest to occur of: (a) the scheduled vesting date and (b) 12 months
      from the date of the change of
control.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The other
terms of the Jenny Agreement will not be affected by the amendment.</font></div>
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anticipated that definitive agreements embodying these terms will be entered
into shortly.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; 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 1934, Bluefly, Inc. has duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.</font></div>
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      12, 2010</font></div>
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      INC.</font></div>
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      </font></td>
            <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">&#160;
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            <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">&#160;
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      Kara B. Jenny</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">&#160;
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      B. Jenny</font></div>
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            <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">&#160;
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{"company-data": {"conformed-name": "BLUEFLY INC", "cik": "0001030896", "assigned-sic": "5961", "irs-number": "133612110", "state-of-incorporation": "DE", "fiscal-year-end": "0403"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-14498", "film-number": "10523063"}, "business-address": {"street1": "42 WEST 39TH ST", "city": "NEW YORK", "state": "NY", "zip": "10018", "phone": "2129448000"}, "mail-address": {"street1": "42 WEST 39TH ST", "city": "NEW YORK", "state": "NY", "zip": "10018"}, "former-company": {"former-conformed-name": "PIVOT RULES INC", "date-changed": "19970305"}}
Unassociated Document
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 6,
2010
BLUEFLY,
INC.
(EXACT
NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE
(State or
other jurisdiction of incorporation)
001-14498
13-3612110
(Commission
      File Number)
(I.R.S.
      Employer Identification Number)
42
      West 39
th
Street, New York, New York
10018
(Address
      of principal executive offices)
(Zip
      Code)
Registrant's
telephone number, including area code:
(212)
944-8000
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:
o
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
o
Soliciting material
      pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
o
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
o
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)
Amendment to
Bonus Plan
On
January 6, 2010, the Compensation Committee (the "Committee") of the Board of
Directors of Bluefly, Inc. (the "Company") modified the cash bonus plan for
fiscal year 2009 (the "Bonus Plan") it had previously approved in October 2009
to increase the contingent bonus levels which could be earned by Melissa
Payner-Gregor, the Company's Chief Executive Officer, and Kara Jenny, the
Company's Chief Financial Officer, if it is determined that the Company exceeded
the previously established adjusted EBITDA target levels for fiscal year 2009 by
certain specified amounts.  As amended, the range of the contingent
bonus which may become payable to Ms. Payner under the Bonus Plan, based upon a
formula approved by the Committee, is between zero and $600,000.  The
amount of the contingent bonus payable to Ms. Jenny, based upon the same
formula, is generally between 27% and 30% of the amount payable to Ms. Payner,
but not subject to a cap.  The contingent bonus payments, if any, are
payable as soon as practicable following the availability of the Company's
audited financial statements (but in no event later than March 15,
2010).
The Bonus
Plan, as approved in October 2009, provided for the payment of a $125,000 cash
bonus to Ms. Payner in October 2009, and cash bonuses of $75,000 to Ms. Payner
and $33,000 to Ms. Jenny if they remained with the Company at year
end.  Those additional amounts were paid in January
2010.  The Bonus Plan also provided for contingent bonus payments to
Ms. Payner and Ms. Jenny if the Company achieved specified adjusted EBITDA
target levels for fiscal year 2009.  The range of the contingent
bonuses under the Bonus Plan was originally between zero and $180,000 for Ms.
Payner and between zero and $60,000 for Ms. Jenny, but  was not in
limitation of additional discretionary bonuses for performance above the
specified target levels.
Amendment to Ms. Payner's
Employment Agreement
On
January 6, 2010, the Committee also approved an amendment to the Employment
Agreement (the "Payner Agreement"), dated as of November 14, 2006, between the
Company and Ms. Payner.  Pursuant to the amendment, the Payner
Agreement will be modified to provide for:
·
a
      term of 36 months beginning on January 1, 2010 and to automatically renew
      for successive one-year terms unless the Company provides Ms. Payner
      written notice of its desire to renew the Payner Agreement at least 90
      days prior to the end of the then-current term, including any one year
      renewal term (the "Evergreen
Extension");
·
annual
      cost of living adjustments to Ms. Payner's annual base salary under the
      Payner Agreement, based on adjustments to the United States Consumer Price
      Index, beginning on January 1,
2011;
·
payment
      of an annual performance bonus equal to 60% of Ms. Payner's annual base
      salary thereunder based upon the achievement of one or more targets to be
      set for each fiscal year by the Compensation Committee in its sole
      discretion, which bonus amount
shall be paid on an adjusted basis for achievement of 75% to 125%
of such targets, provided that such bonus shall not be in limitation of
additional discretionary bonuses; and
·
the
      immediate vesting of one-half of any unvested stock options granted to Ms.
      Payner by the Company which are outstanding as of the date of a change of
      control (as defined in the Payner Agreement) and have not yet vested, with
      the remaining one-half of such unvested stock options vesting on the
      earliest to occur of: (a) the scheduled vesting date and (b) 12 months
      from the date of the change of
control.
The other
terms of the Payner Agreement will not be affected by the
amendment.
Amendment to Ms. Jenny's
Employment Agreement
On
January 6, 2010, the Committee also approved an amendment to the Amended and
Restated Employment Agreement (the "Jenny Agreement"), dated as of March 19,
2008, between the Company and Ms. Jenny.  Pursuant to the amendment,
the Jenny Agreement will be modified to provide for:
·
a
      term of 36 months beginning on January 1, 2010 subject to an Evergreen
      Extension;
·
an
      increase to Ms. Jenny's annual base salary from $250,000 to $300,000;
      and
·
the
      immediate vesting of one-half of any unvested stock options granted to Ms.
      Jenny by the Company which are outstanding as of the date of a change of
      control (as defined in the Jenny Agreement) and have not yet vested, with
      the remaining one-half of such unvested stock options vesting on the
      earliest to occur of: (a) the scheduled vesting date and (b) 12 months
      from the date of the change of
control.
The other
terms of the Jenny Agreement will not be affected by the amendment.
It is
anticipated that definitive agreements embodying these terms will be entered
into shortly.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act 1934, Bluefly, Inc. has duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
Dated:  January
      12, 2010
BLUEFLY,
      INC.
By:  /s/
      Kara B. Jenny
Name:  Kara
      B. Jenny
Title:    Chief
      Financial Officer