Related Party Transactions and Outside Related Director Information

RedEnvelope, Inc. (REDE)

5/23/2006 8K Information

Mr. Galloway is a former Chairman and co-founder of RedEnvelope (formerly Giftworks Online, Inc.). He served as Chairman RedEnvelope's founding in 1997 to February 2000.

8/1/2005 Proxy Information

Polly E. Boe’s employment offer letter dated March 28, 2005, provides that Ms. Boe will receive severance payments equal to six months of her base salary, paid ratably over a six month period, and, at her election, six months of continued health care insurance coverage, in the event her employment is terminated by the Company other than for cause and provided that she signs the Company’s standard general release of any claims against the Company. Ms. Boe is employed by the Company on an at-will basis. Ms. Boe’s offer letter also provides for reimbursement of up to $30,000 of the expenses of moving her household to the San Francisco area and for the provision of up to three months of temporary housing during her relocation.