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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>WASHINGTON, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>_______________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>_______________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PURSUANT TO SECTION 13 OR 15(d) OF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>THE SECURITIES EXCHANGE ACT OF 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Date of report (Date of earliest event reported):
February 2, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>BLUEFLY, INC.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified in its
charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 32%; vertical-align: top; border-bottom: black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">Delaware</TD>
    <TD STYLE="width: 4%; vertical-align: bottom; padding-bottom: 1.2pt; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 30%; vertical-align: top; border-bottom: black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">001-14498</TD>
    <TD STYLE="width: 4%; vertical-align: bottom; padding-bottom: 1.2pt; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 30%; vertical-align: top; border-bottom: black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">13-3612110</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(State or other jurisdiction</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">of incorporation)</P></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Commission file</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">number)</P></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(I.R.S. Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Identification No.)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 57%; vertical-align: top; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">42 West 39th Street, New York, New York</TD>
    <TD STYLE="width: 5%; vertical-align: bottom; padding-bottom: 1.2pt; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 38%; vertical-align: top; border-bottom: black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">10018</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Address of principal executive offices)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt; text-align: center">(Zip Code)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Registrant&rsquo;s telephone number, including
area code:<B><U> (212)&nbsp;944-8000</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">N/A</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: center">(Former name or former address, if changed since last report.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Check the appropriate box below if the Form&nbsp;8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&#9633;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written communications
pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&#9633;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material
pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&#9633;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications
pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&#9633;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications
pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>ITEM 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION
OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On February 2, 2012, Bluefly, Inc. (the &ldquo;Company&rdquo;) announced
that Joseph C. Park, previously Chief Operating Officer, has been promoted to Chief Executive Officer, effective immediately, replacing
Melissa Payner-Gregor, who resigned as Chief Executive Officer and a member of the Company&rsquo;s Board of Directors. Mr. Park
is also replacing Ms. Payner-Gregor on the Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Resignation of Melissa Payner-Gregor </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In connection with her resignation, Ms. Payner-Gregor and the Company
executed a Separation Agreement, dated February 2, 2012 (the &ldquo;Agreement&rdquo;). In connection with the Agreement, the Company
has agreed to provide Ms. Payner-Gregor with the continuation of salary and certain benefits for twelve months, and accelerated
vesting of all unvested stock options, with all vested stock options remaining exercisable for one year. In addition, during the
twelve month period following her resignation, Ms. Payner-Gregor will continue to be subject to the restrictive covenants contained
in her employment agreement, including non-competition and non-solicitation restrictions. Ms. Payner-Gregor and the Company executed
customary releases in connection with the Agreement. The foregoing description of the Agreement is not intended to be complete
and is qualified in its entirety by the complete text of the Agreement, which is filed as Exhibit 10.1 hereto and is incorporated
herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Appointment of Joseph Park as Chief Executive Officer and a Member
of the Board</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In connection with his appointment as Chief Executive Officer, the
Company approved the following changes to Mr. Park&rsquo;s compensation: (i) Mr. Park&rsquo;s base salary was increased from $325,000
to $375,000, subject to an annual cost of living adjustment commencing January 1, 2013; (ii) Mr.
Park&rsquo;s target bonus opportunity was increased from 35% of his base salary to 50% of his base salary; and (iii) in the event
of a termination &ldquo;without cause&rdquo; or a &ldquo;constructive termination&rdquo; (as such terms are defined in Mr. Park&rsquo;s
employment agreement with the Company, dated as of May 3, 2011 (the &ldquo;Park Employment Agreement&rdquo;)), Mr. Park&rsquo;s
severance was increased from six months of base salary continuation to twelve months of base salary continuation, and all stock
options held by Mr. Park that would have vested during the twelve month period following such termination will vest on the date
of such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In addition, in connection with Mr. Park&rsquo;s appointment as
the Company&rsquo;s Chief Executive Officer, Mr. Park was granted a stock option to purchase 450,000 shares of the Company&rsquo;s
common stock at a per share exercise price equal to the fair market value on the date of grant, with such stock option to have
a ten year term and to become vested in equal monthly installments over the four year period following the grant date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Mr. Park and the Company are expected to amend and restate the Park
Employment Agreement to reflect his change in positions and new compensation arrangement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Kara Jenny Stock Option Grant</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On February 2, 2012, the Committee granted Kara Jenny, the Company&rsquo;s
Chief Financial Officer, a stock option to purchase 150,000 shares of the Company&rsquo;s common stock at a per share exercise
price equal to the fair market value on the date of grant, with such stock option to have a ten year term and to become vested
in equal monthly installments over the four year period following the grant date. This stock option grant was awarded to Ms. Jenny
in order to provide her with an equity compensation package appropriate for her position and responsibilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<HR NOSHADE SIZE="1" STYLE="color: Black; width: 100%; margin-top: 3pt; margin-bottom: 3pt">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(d)&nbsp;Exhibits</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 9%; border-bottom: black 1.5pt solid">Exhibit No.</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 87%; border-bottom: black 1.5pt solid">Description</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">10.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Separation Agreement, dated February 2, 2012, by and between Bluefly, Inc. and Melissa Payner-Gregor.&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 35%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">BLUEFLY, INC.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(Registrant)</P></TD>
    <TD STYLE="width: 12%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: white 3pt solid">Dated : February 3, 2012</TD>
    <TD STYLE="border-bottom: white 3pt solid">By:</TD>
    <TD NOWRAP STYLE="border-bottom: black 1.5pt solid">/s/&nbsp;Kara B. Jenny</TD>
    <TD STYLE="border-bottom: white 3pt solid">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom">Name:&nbsp;&nbsp;&nbsp;Kara B. Jenny</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>



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[{"type": "8-K", "sequence": "1", "filename": "k301207_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 19266}]
{"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": "12571262"}, "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"}}
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):
February 2, 2012
BLUEFLY, INC.
(Exact name of registrant as specified in its
charter)
Delaware
001-14498
13-3612110
(State or other jurisdiction
of incorporation)
(Commission file
number)
(I.R.S. Employer
Identification No.)
42 West 39th Street, New York, New York
10018
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including
area code:
(212) 944-8000
N/A
(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 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION
OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.
On February 2, 2012, Bluefly, Inc. (the "Company") announced
that Joseph C. Park, previously Chief Operating Officer, has been promoted to Chief Executive Officer, effective immediately, replacing
Melissa Payner-Gregor, who resigned as Chief Executive Officer and a member of the Company's Board of Directors. Mr. Park
is also replacing Ms. Payner-Gregor on the Board of Directors.
Resignation of Melissa Payner-Gregor
In connection with her resignation, Ms. Payner-Gregor and the Company
executed a Separation Agreement, dated February 2, 2012 (the "Agreement"). In connection with the Agreement, the Company
has agreed to provide Ms. Payner-Gregor with the continuation of salary and certain benefits for twelve months, and accelerated
vesting of all unvested stock options, with all vested stock options remaining exercisable for one year. In addition, during the
twelve month period following her resignation, Ms. Payner-Gregor will continue to be subject to the restrictive covenants contained
in her employment agreement, including non-competition and non-solicitation restrictions. Ms. Payner-Gregor and the Company executed
customary releases in connection with the Agreement. The foregoing description of the Agreement is not intended to be complete
and is qualified in its entirety by the complete text of the Agreement, which is filed as Exhibit 10.1 hereto and is incorporated
herein by reference.
Appointment of Joseph Park as Chief Executive Officer and a Member
of the Board
In connection with his appointment as Chief Executive Officer, the
Company approved the following changes to Mr. Park's compensation: (i) Mr. Park's base salary was increased from $325,000
to $375,000, subject to an annual cost of living adjustment commencing January 1, 2013; (ii) Mr.
Park's target bonus opportunity was increased from 35% of his base salary to 50% of his base salary; and (iii) in the event
of a termination "without cause" or a "constructive termination" (as such terms are defined in Mr. Park's
employment agreement with the Company, dated as of May 3, 2011 (the "Park Employment Agreement")), Mr. Park's
severance was increased from six months of base salary continuation to twelve months of base salary continuation, and all stock
options held by Mr. Park that would have vested during the twelve month period following such termination will vest on the date
of such termination.
In addition, in connection with Mr. Park's appointment as
the Company's Chief Executive Officer, Mr. Park was granted a stock option to purchase 450,000 shares of the Company's
common stock at a per share exercise price equal to the fair market value on the date of grant, with such stock option to have
a ten year term and to become vested in equal monthly installments over the four year period following the grant date.
Mr. Park and the Company are expected to amend and restate the Park
Employment Agreement to reflect his change in positions and new compensation arrangement.
Kara Jenny Stock Option Grant
On February 2, 2012, the Committee granted Kara Jenny, the Company's
Chief Financial Officer, a stock option to purchase 150,000 shares of the Company's common stock at a per share exercise
price equal to the fair market value on the date of grant, with such stock option to have a ten year term and to become vested
in equal monthly installments over the four year period following the grant date. This stock option grant was awarded to Ms. Jenny
in order to provide her with an equity compensation package appropriate for her position and responsibilities.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
Exhibit No.
Description
10.1
Separation Agreement, dated February 2, 2012, by and between Bluefly, Inc. and Melissa Payner-Gregor.
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 hereunto duly authorized.
BLUEFLY, INC.
(Registrant)
Dated : February 3, 2012
By:
/s/ Kara B. Jenny
Name:   Kara B. Jenny
Title:     Chief Financial Officer