Document:

exhibit10_6x05282022

1  MILLERKNOLL, INC. 2020 LONG-TERM INCENTIVE PLAN  PREMIUM STOCK OPTION AGREEMENT  Participant: [INSERT NAME]  Award Date: [INSERT AWARD DATE]  Number of Stock Options: [INSERT TOTAL OPTIONS]  Purchase Price: [INSERT PURCHASE PRICE]  Expiration Date: [INSERT EXPIRATION DATE]  This certifies MillerKnoll, Inc. (the “Company”) has on the Date of the Stock Option Grant set  forth above (the “Award Date”) granted to the Participant named above (the “Participant”) a grant  of Stock Options (the “Award”) as summarized above and as detailed in the Executive  Compensation Equity Award Notice (the “Award Notice”).  The Award is granted under the MillerKnoll, Inc. 2020 Long-Term Incentive Plan (the  "Plan") and subject to the terms set forth in this Stock Option Agreement (the “Award  Agreement”). A copy of the Plan Prospectus has been delivered to Participant, and a copy of the  Plan is available from the Company on request. The Plan is incorporated into this Award  Agreement by reference, and in the event of any conflict between the terms of the Plan and this  Award Agreement, the terms of the Plan will govern; provided, however, that definitions under  this Award Agreement shall govern.  Any capitalized terms not defined herein will have the  meaning set forth in the Plan.  1. Option.  Pursuant to the Plan and this Award Agreement, the Participant has the option to purchase the Option Shares on the terms and conditions herein set forth (the "Option").  This Option shall not be designated as an incentive stock option ("ISO") for purposes of qualifying  as such under the provisions of Section 422 of the Internal Revenue Code of 1986, as amended.  2. Purchase Price.  The purchase price of the shares covered by this Award Agreement shall be the per share price shown above (the “Purchase Price”). The "Committee" (provided for  in Article 3 of the Plan) has determined that such price represents xxx percent (xxx%) of the fair  market value of a share of the Company's common stock as of the Award Date.   3. Term of Option. This Option shall expire on the date set forth above subject to earlier termination as provided in subsequent sections of this Award Agreement (the "Expiration  Date").  4. Participant's Agreement.  In consideration of the granting of the Option, the Participant agrees to remain in the employ of the Company for the lesser of a period of at least  twelve (12) months from the Award Date, or a period commencing on the date hereof and ending  upon the Participant's Retirement (the "Minimum Employment Period"). Such employment,  subject to the provisions of any written contract between the Company and the Participant, shall  be at the pleasure of the Board of Directors, and this Award Agreement shall not impose on the  Company any obligation to retain the Participant in its employ for any period. In the event of the  Exhibit 10.6 

 

2  termination of employment of the Participant for any reason during the Minimum Employment  Period, this Award Agreement shall terminate, unless this Option becomes exercisable as provided  in Sections 8 or 9.     5. Exercise of Option.      (a) Except as provided in Section 8 and 9, this Option may be exercised and  Option Shares may be purchased in accordance with the vesting schedule set forth in  Section 5(b) below.  Subject to that vesting schedule, this Option may be exercised at any  time during the term of this Award Agreement, by written notice to the Company. The  notice shall state the number of shares with respect to which the Option is being exercised,  shall be signed by the person exercising this Option, and shall be accompanied by payment  of the full purchase price of the shares. This Award Agreement shall be submitted to the  Company with the notice for purposes of recording the shares being purchased, if exercised  in part, or for purposes of cancellation if all shares then subject to this Option are being  purchased. In the event this Option shall be exercised pursuant to Section 8(e) hereof by  any person other than the Participant, such notice shall be accompanied by appropriate  proof of the right of such person to exercise the Option. Payment of the purchase price shall  be made by: (a) cash, check, bank draft, or money order, payable to the order of the  Company; (b) the delivery by the Participant of unencumbered shares of common stock of  the Company, with a fair market value on the date of exercise equal to the total purchase  price of the shares to be purchased; or (c) reduction in the number of shares of Common  Stock issuable upon exercise (based on the Fair Market Value of the Common Stock on  the last trading date preceding payment as determined by the Committee) or (d) a  combination of (a), (b) and (c). Upon exercise of all or a portion of this Option, the  Company shall issue to the Participant a stock certificate or book entry deposit representing  the number of shares with respect to which this Option was exercised.    (b) Vesting Schedule.  Subject to the terms and conditions of this Option, the  Option Shares shall vest as set forth in the Award Notice.     (c) Automatic Exercise Upon Expiration. Notwithstanding any other provision  of this Award Agreement (other than this Section 5(c)), on the last trading day on which  all or a portion of the outstanding Option may be exercised, if as of the close of trading on  such day the then Fair Market Value of a share of Common Stock exceeds the per share  Purchase Price of the Option by at least $.01 (such expiring portion of the Option that is so  in-the-money, an “Auto-Exercise Eligible Option”), the Participant will be deemed to have  automatically exercised such Auto-Exercise Eligible Option (to the extent it is then vested  and has not previously been exercised or forfeited) as of the close of trading in accordance  with the provisions of this Section 5(c); provided that, if such automatic exercise would  result in the issuance of less than one whole share of Common Stock to the Participant  following the reduction for the Purchase Price and withholding described in the following  sentence, then the Option shall not be automatically exercised pursuant to this Section 5(c).  In the event of an automatic exercise pursuant to this Section 5(c), the Company will reduce  the number of shares of Common Stock issued to the Participant upon such automatic  exercise of the Auto-Exercise Eligible Option in an amount necessary to satisfy (1) the  Participant’s Purchase Price obligation for the Auto-Exercise Eligible Option, and (2) the  

 

3  applicable Federal, state, local and, if applicable, foreign income and employment tax and  social insurance withholding requirements arising upon the automatic exercise in  accordance with the procedures of Section 15.3 of the Plan (unless the Committee deems  that a different method of satisfying the tax withholding obligations is practicable and  advisable), in each case based on the Fair Market Value of the Common Stock as  determined in accordance with the Plan. The Participant may notify the Plan record-keeper  in writing in advance that the Participant does not wish for the Auto-Exercise Eligible  Option to be exercised and, if such advance notification is provided, the automatic exercise  shall not apply. This Section 5(c) shall not apply to the Option to the extent that this Section  5(c) causes the Option to fail to qualify for favorable tax or accounting treatment under  applicable law or accounting standards. In its discretion, the Company may determine to  cease automatically exercising some or all stock options, including the Option, at any time.   The Participant understands, acknowledges, agrees and hereby stipulates that the automatic  exercise procedure pursuant to this Section 5(c) is provided solely as a convenience to the  Participant as protection against the Participant’s inadvertent failure to exercise all or any  portion of an in-the-money Option that is vested and exercisable before such Option expires  under this Award Agreement. Because any exercise of all or any portion of the Option is  solely the Participant’s responsibility, the Participant hereby waives and releases and  agrees to indemnify and hold the Company harmless from and against any and all claims  of any kind whatsoever against the Company and/or any other party (including without  limitation, the Committee and the Company’s employees and agents) arising out of or  relating to the automatic exercise procedure pursuant to this Section 5(c) (or any failure  thereof), including without limitation any resulting individual income tax, penalty and/or  interest liability and/or any other liability if the automatic exercise of the Option does  occur, or does not occur for any reason or no reason whatsoever and/or the Option actually  expires.     6. Tax Withholding.    (a) (a) In order to comply with all applicable federal, state, and local tax  withholding laws or regulations, the Company may take such action as it deems appropriate  to ensure that all applicable federal, state, and local payroll, withholding, income or other  taxes, which are the sole and absolute responsibility of Participant are withheld or collected  from Participant.    (b) The Company shall have the authority to cause the required tax withholding  obligation to be satisfied, in whole or in part, by:    (i) The Participant tendering a payment to the Company in the form of  cash, check (bank check, certified check or personal check) or money order payable  to the Company;    (ii) Withholding from shares of Common Stock to be issued to  Participant a number of shares of Common Stock with an aggregate Fair Market  Value that would satisfy the withholding amount due; or     

 

4  (iii) Delivering to the Company unencumbered shares of Common Stock  already owned by Participant, or causing the broker to sell from the number of shares  of Common Stock to be issued to the Participant, the number of shares of Common  Stock with an aggregate Fair Market Value necessary to satisfy the withholding  amount due. Any shares of Common Stock already owned by Participant referred  to in this Section 6(b)(iii) must have been owned by Participant for no less than six  (6) months prior to the date delivered to the Company.    7. Restriction on Transfer.  This Option shall not be sold, assigned, transferred,  pledged hypothecated or otherwise disposed of by Participant otherwise than by will or the laws  of descent and distribution, and any such purported sale, assignment, transfer, pledge,  hypothecation or other disposition will be void and unenforceable against the Company.    8. Termination of Employment.      (a) Termination of Employment for Reasons Other Than Retirement, Disability  or Death. In the event the Participant ceases to be employed by the Company for any reason  other than Retirement (as defined below) or on account of Disability or death, this Option  shall, to the extent rights to purchase shares hereunder have vested at the date of such  termination and shall not have been fully exercised, be exercisable, in whole or in part, at  any time within a period of three (3) months following cessation of the Participant's  employment, subject, however, to prior expiration of the term of this Option and any other  limitations upon its exercise in effect at the date of exercise.    (b) Termination of Employment for Retirement Prior to Full Vesting.  If the  Participant ceases to be employed by the Company by reason of Retirement prior to the  full vesting of the Option Shares under Section 5(b) above and subject to Participant's  compliance with the covenants set forth in Section 12 below, if (1) the date of Retirement  occurs on or after the first anniversary of the Award Date, this Option shall vest in  accordance with the schedule set forth in Section 5(b) above, or (2) if the date of Retirement  occurs before the first anniversary of the Award Date, the number of Option Shares subject  to this Option shall be deemed vested by multiplying that number of Option Shares by a  fraction, the numerator of which shall be the number of full calendar months of  employment service subsequent to the Award Date, and the denominator of which shall be  twelve (12). “Retires” or “Retirement” means the Participant’s resignation on or after  attaining (A) age 55 and 5 or more years of service, or (B) 30 or more years of service. For  clarity, a Company-initiated termination of the employment of the Participant shall not be  considered a “Retirement”. Subject to Participant's compliance with the covenants set forth  in Section 12 below, this Option shall, to the extent rights to purchase shares hereunder  have vested, be exercisable, in whole or in part, at any time within the period of five (5)  years following the date of Retirement subject, however, to prior expiration of the term of  this Option and any other limitations upon its exercise in effect at the date of exercise. If  the Participant dies after such Retirement, this Option shall be exercisable in accordance  with Section 8(e) hereof.    (c) Termination of Employment for Retirement After Full Vesting.  If the  Participant ceases to be employed by the Company by reason of Retirement after the full  

 

5  vesting of the Option Shares under Section 5(b) above, this Option shall be exercisable, in  whole or in part, at any time within the period of five (5) years following the date of  Retirement, subject, however, to prior expiration of the term of this Option and any of the  limitations upon its exercise in effect at the date of exercise.  If the Participant dies after  such Retirement, this Option shall be exercisable in accordance with Section 8(e) hereof.    (d) Termination of Employment for Disability.  If the Participant ceases to be  employed by the Company by reason of Disability, this Option shall, to the extent rights to  purchase shares hereunder have vested as of the date of such Disability and have not been  fully exercised, be exercisable, in whole or in part, at any time within the period of five (5)  years following such termination of employment, subject, however, to prior expiration of  the term of this Option and any other limitations upon its exercise in effect at the date of  exercise.  If the Participant dies after such Disability, this Option shall be exercisable in  accordance with Section 8(e) hereof.    (e) Termination of Employment Because of Death.  In the event of the  Participant's death, this Option shall, to the extent rights to purchase shares hereunder have  vested at the date of death and shall not have been fully exercised, be exercisable, in whole  or in part, by the personal representative of the Participant's estate, by any person or persons  who shall have acquired this Option directly from the Participant by bequest or inheritance  at any time during the following periods: (i) if Participant dies while employed by the  Company, at any time within five (5) years after the date of death, or (ii) if Participant dies  during the extended exercise period following termination of employment specified in  Section 8(b), (c), or (d) above, at any time within the longer time of such extended period  or one year after the date of death, subject, however, in each case, to the prior expiration  of the term of this Option and any other limitations on the exercise of such Option in effect  at the date of exercise.    (f) Termination of Option.  If this Option is not exercised within whichever of  the exercise periods specified in Sections 8(a), (b), (c), (d) or (e) is applicable, this Option  shall terminate upon expiration of such exercise period.    9.  Change in Control.  Notwithstanding any term to the contrary in this Agreement or  the Plan, if, within two (2) years following a Change in Control, the Participant's employment (a)  is terminated without Cause (b) terminates with Good Reason, or (c) terminates under  circumstances that entitle the Participant to accelerated vesting under any individual employment  agreement between the Participant and the Company, a Subsidiary, or any successor thereof, then  this Award (or its replacement) shall become fully vested and immediately exercisable and shall  remain exercisable for the applicable period as described in Section 8. Notwithstanding the  foregoing, if upon the occurrence of a Change in Control this Award is not assumed or continued,  then this Award shall be treated in accordance with Section 14.3(a) of the Plan.    10.  Rights as a Shareholder.  Participant shall not have any rights as a shareholder with  respect to any shares covered hereby until Participant shall have become the holder of record of  such shares. No adjustment shall be made for dividends, distributions or other rights for which the  record date is prior to the date on which Participant shall have become the holder of record thereof,  except as provided in Section 11 hereof.  

 

6    11. Adjustments to Option Shares for Certain Corporate Transactions.      (a) The Committee will make an appropriate and proportionate adjustment to  the number of Option Shares granted under this Award if (i) the outstanding shares of  Common Stock are increased or decreased, as a result of merger, consolidation, sale of all  or substantially all of the assets of the Company, reclassification, stock dividend, stock  split, reverse stock split with respect to such shares of Common Stock or other securities,  or (ii) additional shares or new or different shares or other securities are distributed with  respect to such shares of Common Stock or other securities or exchanged for a different  number or kind of shares or other securities through merger, consolidation, sale of all or  substantially all of the assets of the Company, reorganization, recapitalization,  reclassification, stock dividend, stock split, reverse stock split or other distribution with  respect to such shares of Common Stock or other securities.    (b) The Committee may make an appropriate and proportionate adjustment in  the number of Option Shares granted under this Award if the outstanding shares of  Common Stock are increased or decreased as a result of a recapitalization or reorganization  not included within Section 11(a) above.    12. Participant Covenants.  In consideration of the grant of this Award by the Company,  Participant agrees to the following:    (a) Confidentiality.  In the course of Participant's employment with the  Company, Participant may be making use of, acquiring, or adding to the Company's  confidential information, trade secrets, and Protected Information; accordingly, Participant  agrees and promises:.    (i) to protect and maintain the confidentiality of Protected Information  while employed by the Company;    (ii) to return (and not retain) any and all materials reflecting Protected  Information that Participant may possess (including all Company-owned  equipment) immediately upon end of employment or upon demand by the  Company; and    (iii) to not use or disclose, except as necessary for the performance of  Participant's services on behalf of the Company or as required by law or legal  process, any Protected Information where such use or disclosure would be  detrimental to the interests of the Company. This promise applies only for so long  as such Protected Information remains confidential and not generally known to the  Company's competitors, or 18 months following the end of Participant's  employment with the Company, whichever occurs first.    (b) Restrictive Covenants.  Participant understands and agrees that the  Company has legitimate interests in protecting its goodwill, its relationships with  customers and business partners, and in maintaining its confidential information, trade  

 

7  secrets and Protected Information, and hereby agrees that the following restrictions are  appropriate to meet such goals.     (i) Non-Solicitation.  Participant acknowledges that the relationships  and goodwill that Participant develops with Company Customers as a result of  Participant's employment belong to the Company.  Participant therefore agrees that  while employed by the Company and for a period of 18 months after Participant's  employment with the Company ends, for whatever reason, Participant will not, and  will not assist anyone else to, (1) solicit or encourage any Company Customer to  terminate or diminish its relationship with the Company relating to Competitive  Services or Products; or (2) seek to persuade any Company Customer to conduct  with anyone other than the Company any business or activity relating to  Competitive Services or Products that such Company Customer conducts or could  conduct with the Company.    (ii) Non-Competition.  Participant agrees that while employed by the  Company and for a period of 18 months after Participant's employment with the  Company ends for any reason, Participant will not, for himself or herself, or on  behalf of any other person or entity, directly or indirectly, provide services to a  Direct Competitor in a role where Participant's knowledge of Protected Information  is likely to affect Participant's decisions or actions for the Direct Competitor to the  detriment of the Company.    (c) Definitions.  For purposes of this Section 12, the following terms shall be  defined as follows:     (i) Protected Information.  "Protected Information" means Company  information not generally known to, and not readily ascertainable through proper  means by, the Company's competitors on matters such as customer information,  partner information, and the relative skills and experience of the Company's other  Participants or agents; nonpublic information; strategic plans; business methods;  investment strategies and plans; intellectual property; sales and marketing plans;  Company (not individual) know-how; trade secrets; and other information of a  technical or economic nature relating to the Company's business.    Protected Information does not include information that (i) was in the public  domain, (ii) was independently developed or acquired by Participant, (iii) was  approved by the Company for use and disclosure by Participant without restriction,  or (iv) is the type of information which might form the basis for protected concerted  activity under the National Labor Relations Act (for example, Participant pay or  Participant terms and conditions of employment).  (ii) Company Customer.  "Company Customer" is limited to those  customers or partners who did business with the Company within the most recent  18 months of Participant's employment (or during the period of Participant's  employment, if Participant was employed for less than 18 months) and with whom  Participant personally dealt on behalf of the Company in the 12 months  immediately preceding the last day of Participant's employment and Participant had  

 

8  business contact or responsibility with such Company Customer as a result of his  or her employment with the Company.  "Company Customer" shall not, however,  include any individual who purchased a Competitive Product from the Company  by direct purchase from one of its retail establishments or via on-line over the  Internet, unless such purchase was of such quantity that the purchase price exceeded  $15,000.     (iii) Competitive Services.  "Competitive Services" means services of  the type that the Company provided or offered to its customers or partners at any  time during the 12 months immediately preceding the last day of Participant's  employment with the Company (or at any time during Participant's employment if  Participant was employed for less than 12 months), and for which Participant was  involved in providing or managing the provision of such services.    (iv) Competitive Products.  "Competitive Products" means products that  serve the same function as, or that could be used to replace, products the Company  provided to, offered to, or was in the process of developing for a present, former,  or future possible customer/partner at any time during the twelve (12) months  immediately preceding the last day of Participant's employment (or at any time  during Participant's employment if Participant was employed for less than 12  months), with which Participant had direct responsibility for the sale or  development of such products or managing those persons responsible for the sale  or development of such products.    (v) Direct Competitor.  "Direct Competitor" means a person, business  or company providing Competitive Products or Competitive Services anywhere in  the United States.  "Direct Competitor" does not include any business which the  parties have agreed in writing to exclude from the definition, and the Company will  not unreasonably or arbitrarily withhold such agreement.    (d) Non-disparagement.  Participant agrees that, while employed with the  Company and thereafter, Participant will not, directly or indirectly, individually or in  concert with others, engage in any conduct or make any statement calculated or likely to  have the effect of undermining, disparaging or otherwise reflecting poorly upon the  Company, any member of its Board of Directors or any executive officer of the Company  (the “Protected Persons”) or the Company’s business.  Without limitation, Participant shall  not publish, communicate, post or blog disparaging or confidential information about the  Protected Persons.  However, the Participant may give truthful and non-malicious  testimony if properly subpoenaed to testify under oath.      (e) Exception.  Nothing in this Award Agreement is intended to prevent the  Participant from making disclosures of Protected Information if required by applicable law,  regulation, or legal process, provided that the Participant provide the Company with prior  notice of the contemplated disclosure and reasonably cooperate with the Company, at its  expense, in seeking a protective order or other appropriate protection of such information.   In addition, nothing in this Award Agreement is intended interfere with the whistleblower  provisions of any United States federal, state or local law or regulation, including but not  

 

9  limited to Rule 21F-17 of the Securities Exchange Act of 1934 or § 1833(b) of the Defend  Trade Secrets Act of 2016. Accordingly, notwithstanding anything to the contrary therein,  nothing in this Award Agreement prohibits, restricts or prevents the Participant from  reporting possible violations of United States federal, state or local law or regulation to any  United States federal, state or local governmental agency or entity, including but not  limited to the Department of Justice, the Securities and Exchange Commission, the  Congress, and any agency Inspector General, or to an attorney, or from making other  disclosures that are protected under the whistleblower provisions of federal law or  regulation, or from disclosing trade secrets and other Protected Information in the course  of such reporting; provided, however, that the Participant use the Participant’s reasonable  best efforts to (i) disclose only information that is reasonably related to such possible  violations or that is requested by such agency or entity and (ii) request that such agency or  entity treat such information as confidential. The Participant does not need the prior  authorization from the Company to make any such whistleblower reports or disclosures  and is not required to notify the Company that the Participant has made such reports or  disclosures.    13. Miscellaneous.    (a) Neither this Award Agreement nor the Plan confers on Participant any right  with respect to the continuance of employment by the Company or any Subsidiary, nor will  there be a limitation in any way on the right of the Company or any Subsidiary by which  Participant is employed to terminate his or her employment at any time.    (b) In the event of a restatement of the Company's consolidated financial  statements for any interim or annual period ("Restatement"), the Committee may determine  that the Award exceeds the amount that would have been awarded or received had the  Restatement been known at the time of the original Award or at the time of vesting of any  Option Shares. In the event that the Committee makes such a determination, the Company  shall have the right: (ii) in the instance of a Participant whose misconduct or violation of a  Company policy causes such Restatement, or; (ii) in the instance where a Participant is an  officer subject to Section 16 of the Securities and Exchange Act of 1934, and without  regard to whether Participant caused the Restatement, to (A) forfeit any vested or unvested  rights in this Award, and/or (B) to require repayment or return of any benefit derived from  the exercise of this Award. Both the cause and the amount of adjustment and/or repayment  shall be determined by the Committee in its sole discretion, and its decision shall be final  and binding upon the Participant.    (c) An original record of this Award Agreement and of the Participant's  acceptance and acknowledgement will be held on file by the Company. This Award  Agreement and the Participant's acknowledgement may be made either paper or electronic  format as specified by the Company. To the extent there is any conflict between the terms  contained in this Award Agreement and the terms contained in the original held by the  Company, the terms of the original held by the Company will control.    14. Section 409A Compliance.  To the extent applicable, it is intended that this Award  Agreement be exempt from or comply with the provisions of Section 409A of the Internal Revenue  

 

10  Code ("Section 409A").  This Award Agreement will be administered and interpreted in a manner  consistent with this intent, and any provision that would cause the Award Agreement to fail to  satisfy Section 409A will have no force and effect until amended to comply therewith (which  amendment may be retroactive to the extent permitted by Section 409A).  If any payments under  this Award Agreement constitute nonqualified deferred compensation subject to the requirements  of Section 409A and are payable upon a termination of the Participant's employment, then (a) all  such payments shall be made only upon a "separation from service" within the meaning of  Section 409A, (b) for purposes of determining the timing of such payments, Participant's  termination shall not be considered to occur until he or she has incurred such a separation from  service and (c) to the extent required for compliance with Section 409A if Participant is a  “specified employee” within the meaning of Section 409A, payments will be delayed by six  months.    15. Section 280G.  Notwithstanding anything contained in this Award Agreement to  the contrary, to the extent that any of the payments and benefits provided for under this Award  Agreement, together with any payments or benefits under any other agreement or arrangement  between the Company or any of its affiliates and the Participant (collectively, the “Payments”)  would constitute a “parachute payment” within the meaning of Section 280G of the Code, the  amount of such Payments shall be reduced (to the extent any reduction is necessary) to the amount  that would result in no portion of the Payments being subject to the excise tax imposed pursuant  to Section 4999 of the Code if and only if such reduction would provide the Participant with an  after-tax amount greater than if there was no reduction. Any reduction shall be done in a manner  that maximizes the amount to be retained by the Participant, provided that to the extent any order  is required to be set forth herein, then such reduction shall be applied in the following order: (a)  payments that are payable in cash that are valued at full value under Treasury Regulation Section  1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last  reduced first; (b) payments due in respect of any equity valued at full value under Treasury  Regulation Section 1.280G-1, Q&A 24(a) will be reduced next (if necessary, to zero), with  amounts that are payable or deliverable last reduced first; (c) payments that are payable in cash  that are valued at less than full value under Treasury Regulation Section 1.280G- 1, Q&A 24 will  be reduced next (if necessary, to zero), with the highest values reduced first (as such values are  determined under Treasury Regulation Section 1.280G-1, Q&A 24); (d) payments due in respect  of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24  will be reduced next (if necessary, to zero), with the highest values reduced first (as such values  are determined under Treasury Regulation Section 1.280G-1, Q&A 24); and (e) all other non-cash  benefits will be next reduced pro-rata.    [Signatures appear on the following page]                

 

11  IN WITNESS WHEREOF, the parties have executed this Award Agreement effective as  of the Award Date.    MillerKnoll, Inc.          By:_____________________________________   Jeffrey M. Stutz   Chief Financial Officer         ACCEPTANCE AND ACKNOWLEDGEMENT     Via electronic ACCEPT, I accept the Award Agreement described herein and in the Plan,  acknowledge receipt of a copy of this Award Agreement and the Plan Prospectus, and  acknowledge that I have read them carefully and that I fully understand their contents.exhibit10_7x05282022

MILLERKNOLL, INC. 2020 LONG-TERM INCENTIVE PLAN  RESTRICTED STOCK UNIT AWARD AGREEMENT  Participant: [INSERT NAME]  Award Date: [INSERT AWARD DATE]  Number of Restricted Stock Units: [INSERT TOTAL RSUs]  This certifies MillerKnoll, Inc. (the “Company”) has on the Date of the Restricted Stock Unit  Grant set forth above (the “Award Date”) granted to the Participant named above (the  “Participant”) a grant of Restricted Stock Units (the “Award”) as summarized above and as  detailed in the Executive Compensation Equity Award Notice (the “Award Notice”).  The Award is granted under the MillerKnoll, Inc. 2020 Long-Term Incentive Plan (the  "Plan") and subject to the terms set forth in this agreement (the "Award Agreement"). A copy of  the Plan Prospectus has been delivered to Participant, and a copy of the Plan is available from the  Company on request. The Plan is incorporated into this Award Agreement by reference, and in the  event of any conflict between the terms of the Plan and this Award Agreement, the terms of the  Plan shall govern; provided, however, that definitions under this Award Agreement shall govern.  Any capitalized terms not defined herein shall have the meaning set forth in the Plan.  1. Rights of the Participant with Respect to the Restricted Stock Units. (a) No Shareholder Rights. The Restricted Stock Units granted pursuant to this Award are not shares of Common Stock, but instead are the contingent right to receive  shares of Common Stock and do not and shall not entitle Participant to any rights of a  shareholder of Common Stock. The rights of Participant with respect to the Restricted  Stock Units shall remain forfeitable at all times prior to the date on which such rights  become vested in accordance with Section 2, 3 or 4.  (b) Additional Restricted Stock Units. As long as Participant holds Restricted Stock Units granted pursuant to this Award, the Company shall credit to Participant, as of  each date that the Company pays a Dividend (as defined below) in cash to holders of  Common Stock (the "Dividend Payment Date"), an additional number of Restricted Stock  Units ("Additional Restricted Stock Units") equal to:  (i) The total number of Restricted Stock Units and Additional Restricted Stock Units credited to Participant under this Award as of the close of  business on the record date for such Dividend, multiplied by  (ii) The dollar amount of the Dividend paid per share of Common Stock by the Company on such Dividend Payment Date, divided by  (iii) The Fair Market Value of a share of Common Stock on such Dividend Payment Date.  Exhibit 10.7 

 

  The term "Dividend" shall include all dividends, whether normal or special, and  whether payable in cash, Common Stock, or other property.  A report showing the number of Additional Restricted Stock Units so credited shall  be made available to Participant periodically, as determined by the Company. The  Additional Restricted Stock Units so credited shall vest and be subject to the same terms  and conditions as the Restricted Stock Units to which such Additional Restricted Stock  Units relate, and the Additional Restricted Stock Units shall be forfeited in the event that  the Restricted Stock Units with respect to which such Additional Restricted Stock Units  were credited are forfeited.  (c) Conversion of Restricted Stock Units; Issuance of Common Stock. No  shares of Common Stock shall be issued to Participant prior to the date on which the  Restricted Stock Units vest, and the restrictions with respect to the Restricted Stock Units  lapse, in accordance with Section 2, 3 or 4. Neither this Section 1(c) nor any action taken  pursuant to or in accordance with this Section 1(c) shall be construed to create a trust of  any kind. After any Restricted Stock Units vest pursuant to Section 2, 3 or 4, all restrictions  with respect to the distribution of the Restricted Stock Units have lapsed, and any tax  withholding obligations related to such Restricted Stock Units have been satisfied pursuant  to Section 8, the Company shall, within sixty (60) days, cause to be issued to the Participant  or the Participant's legal representatives, beneficiaries or heirs, as the case may be, a stock  certificate or book entry representing the number of shares of Common Stock in payment  of such vested whole Restricted Stock Units and Additional Restricted Stock Units, unless  a valid deferral has been made pursuant to Section 7, in which case such distribution shall  be made within sixty (60) days after the date to which distribution has been deferred.   2. Vesting. Subject to the terms and conditions of this Award, the Restricted Stock  Units shall vest as set forth in the Award Notice.  3. Forfeiture or Early Vesting Upon Termination of Employment.  (a) Termination of Employment Generally. Except as provided in Sections  3(b), 3(c), and 3(d), if, prior to full vesting of the Restricted Stock Units pursuant to  Section 2 or 4, Participant ceases to be an employee of the Company or a Subsidiary, then  Participant's rights to all of the unvested Restricted Stock Units shall be immediately and  irrevocably forfeited, including the right to receive Additional Restricted Stock Units  issued in respect of unvested Restricted Stock Units.  (b) Death. If Participant dies while employed by the Company or a Subsidiary  and has complied with Section 2 prior to the time that his or her Restricted Stock Units  become fully vested, then all of his or her unvested Restricted Stock Units shall become  immediately vested as of the date of death. No transfer by will or the applicable laws of  descent and distribution of any Restricted Stock Units that vest by reason of Participant's  death shall be effective to bind the Company unless the Committee shall have been  furnished with written notice of such transfer and a copy of the will or such other evidence  as the Committee may deem necessary to establish the validity of the transfer.   

 

  (c) Disability. If Participant's employment by the Company or Subsidiary is  terminated due to Participant's Disability and the Participant has complied with Section 2  at all times prior to such termination, then all of his or her unvested Restricted Stock Units  shall become immediately vested as of the date of such termination.   (d) Retirement.  (i) Except as provided in 3(d)(ii) below, if Participant's employment by  the Company or Subsidiary is terminated by reason of Participant's Retirement (as  defined below) during the first 12 months after the Award Date and prior to the  time that his or her Restricted Stock Units have otherwise become fully vested, then  a portion of his or her unvested Restricted Stock Units shall become immediately  vested as of the date the Participant Retires. The portion of the Restricted Stock  Units that shall vest upon the date of the Participant's Retirement will be determined  by multiplying the sum of Participant's Restricted Stock Units granted under this  Award and any related Additional Restricted Stock Units by a fraction, the  numerator of which is the number of full calendar months, beginning on the Award  Date and ending on the date the Participant Retires during which the Participant  was employed by the Company, and the denominator of which is 12. If Participant  terminates his or her employment by reason of Retirement after the initial 12 month  period, all of his or her Restricted Stock Units will be fully vested. "Retires" or  "Retirement" means for purposes of this Award Agreement the Participant's  resignation on or after attaining (A) age 55 and 5 or more years of service, or (B)  30 or more years of service. For clarity, a Company-initiated termination of the  employment of the Participant shall not be considered a "Retirement". Subject to  Participant's compliance with the covenants set forth in Section 9 below and to  applicable policies of the Company, the Restricted Stock Units shall, to the extent  the right to receive shares has vested in accordance with the preceding sentences,  be sellable any time.  (ii)  Notwithstanding (i), if the Participant is a "Key Employee" (as  defined below), such pro rata portion of Participant's Restricted Stock Units shall  become vested as provided above, but the conversion to Common Stock and the  distribution of Common Stock to the Participant shall not occur until the earlier of:  (A) The date which is six (6) months after the date of the  Participant's Retirement, or  (B) The date of Participant's death.  (iii)  For purposes of Section 3, a "Key Employee" is a Participant who,  at any time during the year in which his or her employment with the Company  terminated, was:  (A) An officer of the Company whose compensation from the  Company for the year was more than $180,000, as adjusted pursuant to  Code Section 416(i)(1)(A);  

 

  (B) A more than 5% owner of the Company; or  (C) A more than 1% owner of the Company with annual  compensation from the Company of more than $150,000. For purposes of  this Section 3, the term "owner" will include ownership attributed to the  Participant under the rules of Code Section 318; provided, however, that the  rules of Code Section 414(b), (c), and (m) do not apply for purposes of  determining ownership of the Company.  4. Change in Control. Notwithstanding any term to the contrary in this Agreement or  the Plan, if within two (2) years after a Change in Control the Participant's employment (a) is  terminated without Cause, (b) terminates with Good Reason or (c) terminates under circumstances  that entitle the Participant to accelerated vesting under any individual employment agreement  between the Participant and the Company, a Subsidiary, or any successor thereof, then this Award  (or its replacement) shall become fully vested upon the date of such termination of employment.  Notwithstanding the foregoing, if upon the occurrence of a Change in Control this Award is not  assumed or continued, then this Award shall be treated in accordance with Section 14.3(a) of the  Plan.  5. Restriction on Transfer. Any rights under this Award may not be sold, assigned,  transferred, pledged, hypothecated, or otherwise disposed of by Participant otherwise than by will  or by the laws of descent and distribution, and any such purported sale, assignment, transfer,  pledge, hypothecation or other disposition will be void and unenforceable against the Company.  6. Adjustments to Restricted Stock Units for Certain Corporate Transactions.   (a) The Committee will make an appropriate and proportionate adjustment to  the number of Restricted Stock Units granted under this Award, if (i) the outstanding shares  of Common Stock are increased or decreased, as a result of merger, consolidation, sale of  all or substantially all of the assets of Company, reclassification, stock dividend, stock split,  reverse stock split, with respect to such shares of Common Stock or other securities, or  (ii) additional shares or new or different shares for other securities are distributed with  respect to such shares of Common Stock or other securities or exchanged for a different  number or kind of shares or other securities to merger, consolidation, sale of all or  substantially all of the assets of the Company, reorganization, recapitalization,  reclassification, stock dividend, stock split, reverse stock split or other distribution with  respect to such shares of Common Stock or other securities.   (b) The Committee may make an appropriate and proportionate adjustment in  the number of Restricted Stock Units granted under this Award if the outstanding shares  of Common Stock are increased or decreased as a result of a recapitalization or  reorganization not included within Section 6(a) above.   7. Deferral of Distribution. A Participant may elect to defer the conversion of  Restricted Stock Units granted under this Award and related Additional Restricted Stock Units  into Common Stock and the issuance of such Common Stock with respect thereto to a time later  than that provided under Section 1(c). The Participant must file such election with the Committee  

 

  at least 12 months prior to the date provided under Section 1(c) that such Restricted Stock Units  are scheduled to be converted into Common Stock and issued to the Participant. The Participant  must specify in the election the date on which the Restricted Stock Units granted under this Award  and the related Additional Restricted Stock Units will be converted to Common Stock and issued  to Participant. The date elected must be at least five (5) years later than the date on which the  Restricted Stock Units would have been converted to Common Stock and issued to the Participant  under Section 1(c).   8. Tax Withholding.  (a) In order to comply with all applicable federal, state, and local tax  withholding laws or regulations, the Company may take such action as it deems appropriate  to ensure that all applicable federal, state, and local payroll, withholding, income or other  taxes, which are the sole and absolute responsibility of Participant are withheld or collected  from Participant.    (b) The Company shall have the authority to cause the required tax withholding  obligation to be satisfied, in whole or in part, by:    (i) The Participant tendering a payment to the Company in the form of  cash, check (bank check, certified check or personal check) or money order payable  to the Company;    (ii) Withholding from shares of Common Stock to be issued to  Participant a number of shares of Common Stock with an aggregate Fair Market  Value that would satisfy the withholding amount due; or     (iii) Delivering to the Company unencumbered shares of Common Stock  already owned by Participant, or causing the broker to sell from the number of shares  of Common Stock to be issued to the Participant, the number of shares of Common  Stock with an aggregate Fair Market Value necessary to satisfy the withholding  amount due. Any shares of Common Stock already owned by Participant referred  to in this Section 8(b)(iii) must have been owned by Participant for no less than six  (6) months prior to the date delivered to the Company.    9. Participant Covenants. In consideration of the grant of this Award by the Company,  Participant agrees to the following:  (a) Confidentiality. In the course of Participant's employment with the  Company, Participant may be making use of, acquiring, or adding to the Company's  confidential information, trade secrets, and Protected Information; accordingly, Participant  agrees and promises:  (i) to protect and maintain the confidentiality of Protected Information  while employed by the Company;  

 

  (ii) to return (and not retain) any and all materials reflecting Protected  Information that Participant may possess (including all Company-owned  equipment) immediately upon end of employment or upon demand by the  Company; and  (iii) not to use or disclose, except as necessary for the performance of  Participant's services on behalf of the Company or as required by law or legal  process, any Protected Information where such use or disclosure would be  detrimental to the interests of the Company. This promise applies only for so long  as such Protected Information remains confidential and not generally known to the  Company's competitors, or 18 months following the end of Participant's  employment with the Company, whichever occurs first.  (b) Restrictive Covenants. Participant understands and agrees that the  Company has legitimate interests in protecting its goodwill, its relationships with  customers and business partners, and in maintaining its confidential information, trade  secrets and Protected Information, and hereby agrees that the following restrictions are  appropriate to meet such goals.  (i) Non-Solicitation. Participant acknowledges that the relationships  and goodwill that Participant develops with Company Customers as a result of  Participant's employment belong to the Company. Participant therefore agrees that  while employed by the Company and for a period of 12 months after Participant's  employment with the Company ends, for whatever reason, Participant will not, and  will not assist anyone else to, (1) solicit or encourage any Company Customer to  terminate or diminish its relationship with the Company relating to Competitive  Services or Products; or (2) seek to persuade any Company Customer to conduct  with anyone other than the Company any business or activity relating to  Competitive Services or Products that such Company Customer conducts or could  conduct with the Company.  (ii) Non-Competition. Participant agrees that while employed by the  Company and for a period of 12 months after Participant's employment with the  Company ends for any reason, Participant will not, for himself or herself, or on  behalf of any other person or entity, directly or indirectly, provide services to a  Direct Competitor in a role where Participant's knowledge of Protected Information  is likely to affect Participant's decisions or actions for the Direct Competitor to the  detriment of the Company.  (c) Definitions. For purposes of this Section 9, the following terms shall be  defined as follows:   (i) Protected Information. "Protected Information" means Company  information not generally known to, and not readily ascertainable through proper  means by, the Company's competitors on matters such as customer information,  partner information, and the relative skills and experience of the Company's other  Participants or agents; nonpublic information; strategic plans; business methods;  

 

  investment strategies and plans; intellectual property; sales and marketing plans;  Company (not individual) know-how; trade secrets; and other information of a  technical or economic nature relating to the Company's business.  Protected Information does not include information that (i) was in the public  domain, (ii) was independently developed or acquired by Participant, (iii) was  approved by the Company for use and disclosure by Participant without restriction,  or (iv) is the type of information which might form the basis for protected concerted  activity under the National Labor Relations Act (for example, Participant pay or  Participant terms and conditions of employment).  (ii) Company Customer. "Company Customer" is limited to those  customers or partners who did business with the Company within the most recent  18 months of Participant's employment (or during the period of Participant's  employment, if Participant was employed for less than 18 months) and with whom  Participant personally dealt on behalf of the Company in the 12 months  immediately preceding the last day of Participant's employment and Participant had  business contact or responsibility with such Company Customer as a result of his  or her employment with the Company. "Company Customer" shall not, however,  include any individual who purchased a Competitive Product from the Company  by direct purchase from one of its retail establishments or via on-line over the  Internet, unless such purchase was of such quantity that the purchase price exceeded  $15,000.  (iii) Competitive Services. "Competitive Services" means services of the  type that the Company provided or offered to its customers or partners at any time  during the 12 months immediately preceding the last day of Participant's  employment with the Company (or at any time during Participant's employment if  Participant was employed for less than 12 months), and for which Participant was  involved in providing or managing the provision of such services.  (iv) Competitive Products. "Competitive Products" means products that  serve the same function as, or that could be used to replace, products the Company  provided to, offered to, or was in the process of developing for a present, former,  or future possible customer/partner at any time during the twelve (12) months  immediately preceding the last day of Participant's employment (or at any time  during Participant's employment if Participant was employed for less than 12  months), with which Participant had direct responsibility for the sale or  development of such products or managing those persons responsible for the sale  or development of such products.  (v) Direct Competitor. "Direct Competitor" means a person, business or  company providing Competitive Products or Competitive Services anywhere in the  United States. "Direct Competitor" does not include any business which the parties  have agreed in writing to exclude from the definition, and the Company will not  unreasonably or arbitrarily withhold such agreement.  

 

  (d) Non-disparagement. Participant agrees that, while employed with the  Company and thereafter, Participant will not, directly or indirectly, individually or in  concert with others, engage in any conduct or make any statement calculated or likely to  have the effect of undermining, disparaging or otherwise reflecting poorly upon the  Company, any member of its Board of Directors or any executive officer of the Company  (the "Protected Persons") or the Company's business. Without limitation, Participant shall  not publish, communicate, post or blog disparaging or confidential information about the  Protected Persons. However, the Participant may give truthful and non-malicious  testimony if properly subpoenaed to testify under oath.   (e) Exception. Nothing in this Award Agreement is intended to prevent the  Participant from making disclosures of Protected Information if required by applicable law,  regulation, or legal process, provided that the Participant provide the Company with prior  notice of the contemplated disclosure and reasonably cooperate with the Company, at its  expense, in seeking a protective order or other appropriate protection of such information.  In addition, nothing in this Award Agreement is intended interfere with the whistleblower  provisions of any United States federal, state or local law or regulation, including but not  limited to Rule 21F-17 of the Securities Exchange Act of 1934 or § 1833(b) of the Defend  Trade Secrets Act of 2016. Accordingly, notwithstanding anything to the contrary therein,  nothing in this Award Agreement prohibits, restricts or prevents the Participant from  reporting possible violations of United States federal, state or local law or regulation to any  United States federal, state or local governmental agency or entity, including but not  limited to the Department of Justice, the Securities and Exchange Commission, the  Congress, and any agency Inspector General, or to an attorney, or from making other  disclosures that are protected under the whistleblower provisions of federal law or  regulation, or from disclosing trade secrets and other Protected Information in the course  of such reporting; provided, however, that the Participant use the Participant's reasonable  best efforts to (i) disclose only information that is reasonably related to such possible  violations or that is requested by such agency or entity and (ii) request that such agency or  entity treat such information as confidential. The Participant does not need the prior  authorization from the Company to make any such whistleblower reports or disclosures  and is not required to notify the Company that the Participant has made such reports or  disclosures.  10. Miscellaneous.  (a) Neither this Award Agreement nor the Plan confers on Participant any right  with respect to the continuance of employment by the Company or any Subsidiary, nor will  there be a limitation in any way on the right of the Company or any Subsidiary by which  Participant is employed to terminate his or her employment at any time.  (b) In the event of a restatement of the Company's consolidated financial  statements for any interim or annual period ("Restatement"), the Committee may determine  that the Award exceeds the amount that would have been awarded or received had the  Restatement been known at the time of the Award Date or at the time of conversion of the  Restricted Stock Units to shares of Common Stock. In the event that the Committee makes  such a determination, the Company shall have the right: (i) in the instance of a Participant  

 

  whose misconduct or violation of a Company policy causes such Restatement, or; (ii) in  the instance where a Participant is an officer subject to Section 16 of the Securities and  Exchange Act of 1934, and without regard to whether Participant caused the Restatement,  to (A) forfeit this Award, and/or (B) to require repayment or return of any benefit derived  from this Award. Both the cause and the amount of adjustment and/or repayment shall be  determined by the Committee in its sole discretion, and its decision shall be final and  binding upon the Participant.   (c) An original record of this Award Agreement and all the terms hereof,  executed by the Company and accepted and acknowledged by the Participant, is held on  file by the Company. This Award Agreement and the Participant's acknowledgment may  be made in paper or in electronic format as specified by the Company. To the extent there  is any conflict between the terms contained in this Award and the terms contained in the  original held by the Company, the terms of the original held by the Company shall control.  11. Section 409A Compliance. To the extent applicable, it is intended that this Award  Agreement be exempt from or comply with the provisions of Section 409A of the Internal Revenue  Code ("Section 409A"). This Award Agreement will be administered and interpreted in a manner  consistent with this intent, and any provision that would cause the Award Agreement to fail to  satisfy Section 409A will have no force and effect until amended to comply therewith (which  amendment may be retroactive to the extent permitted by Section 409A). If any payments under  this Award Agreement constitute nonqualified deferred compensation subject to the requirements  of Section 409A and are payable upon a termination of the Participant's employment, then (a) all  such payments shall be made only upon a "separation from service" within the meaning of  Section 409A, (b) for purposes of determining the timing of such payments, Participant's  termination shall not be considered to occur until he or she has incurred such a separation from  service and (c) to the extent required for compliance with Section 409A if Participant is a  "specified employee" within the meaning of Section 409A, payments will be delayed by six  months.  12. Section 280G. Notwithstanding anything contained in this Award Agreement to the  contrary, to the extent that any of the payments and benefits provided for under this Award  Agreement, together with any payments or benefits under any other agreement or arrangement  between the Company or any of its affiliates and the Participant (collectively, the "Payments")  would constitute a "parachute payment" within the meaning of Section 280G of the Code, the  amount of such Payments shall be reduced (to the extent any reduction is necessary) to the amount  that would result in no portion of the Payments being subject to the excise tax imposed pursuant  to Section 4999 of the Code if and only if such reduction would provide the Participant with an  after-tax amount greater than if there was no reduction. Any reduction shall be done in a manner  that maximizes the amount to be retained by the Participant, provided that to the extent any order  is required to be set forth herein, then such reduction shall be applied in the following order: (a)  payments that are payable in cash that are valued at full value under Treasury Regulation Section  1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last  reduced first; (b) payments due in respect of any equity valued at full value under Treasury  Regulation Section 1.280G-1, Q&A 24(a) will be reduced next (if necessary, to zero), with  amounts that are payable or deliverable last reduced first; (c) payments that are payable in cash  that are valued at less than full value under Treasury Regulation Section 1.280G- 1, Q&A 24 will  

 

  be reduced next (if necessary, to zero), with the highest values reduced first (as such values are  determined under Treasury Regulation Section 1.280G-1, Q&A 24); (d) payments due in respect  of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24  will be reduced next (if necessary, to zero), with the highest values reduced first (as such values  are determined under Treasury Regulation Section 1.280G-1, Q&A 24); and (e) all other non-cash  benefits will be next reduced pro-rata.  IN WITNESS WHEREOF, the parties have executed this Award Agreement effective as  of the Award Date.  MillerKnoll, Inc.     By:_____________________________________   Jeffrey M. Stutz   Chief Financial Officer        ACCEPTANCE AND ACKNOWLEDGEMENT  Via electronic ACCEPT, I accept the Award Agreement described herein and in the Plan,  acknowledge receipt of a copy of this Award Agreement and the Plan Prospectus, and  acknowledge that I have read them carefully and that I fully understand their contents.        17414635.1

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