Document:

Q2 2019 Exhibit 10.38

Exhibit 10.38

September 25, 2018

Mr. Steven Gatoff 

RE:8x8, Inc. Executive Vice President, Chief Financial Officer

Dear Steven,

On behalf of 8x8, Inc., a Delaware corporation ("8x8," or the "Company"), I am pleased to offer you the positions of Executive Vice President, Chief Financial
Officer and Special Advisor to the CEO.  The terms of your employment relationship with the Company will be as set forth below.  

	Position.  You will initially hold the position Executive Vice President, Special Advisor to the CEO, with your employment commencing on a mutually agreed
upon date no later than October 15, 2018.  In this position, you will have responsibilities as determined by your manager, which shall be the Company's Chief Executive Officer, and you will work
closely with the Company's outgoing Chief Financial Officer.   Effective as of (a) the first business day following the filing of the Company's Quarterly Report on Form 10-Q for the quarter ending
September 30, 3018 or (b) November 5, 2018, whichever is earlier, you will become Executive Vice President, Chief Financial Officer, and you will continue to report to the Company's Chief
Executive Officer.  In this position, you will have responsibilities determined by your manager and as set forth in the Company's by-laws and other organizational documents.  Your duties and
responsibilities are subject to change depending on the needs of the Company.

	Compensation.

	Base Salary. You will be paid an annualized salary of $375,000, payable in accordance with the
Company's standard payroll policies, and subject to required withholding.

	Salary Review.  Your base salary will be reviewed as part of the Company's normal salary review process.

	Expenses. You will be reimbursed for all reasonable and necessary business expenses incurred in the performance of your duties as provided in the
Company's Employee Handbook.

	One-Time Bonus.  As promptly as practicable (and in any event within 30 days) following the commencement of your employment, you will be paid a one-time
cash bonus of $45,000, subject to applicable taxes and withholdings.

	Management Incentive Plan.  Commencing on your first day of employment, you will participate in the Company's Management Incentive Bonus Plan (the
"MIP"), with a total annual bonus target equal to 60% of your base salary.  Payments are made under the MIP on a quarterly and annual basis, shortly after the completion of the relevant fiscal
period, based on the Company's achievement of its performance targets and/or your attainment of your individual objectives, and subject to the Company's achievement of minimum financial targets
for the fiscal period.  Your participation in the MIP would commence on your employment start date, and you would be entitled to a pro rata payment (based on number of days of participation) of
any quarterly and annual awards that become payable in

   

8x8, Inc.                                 
2125 O'Nel Drive                                 
San Jose, CA  95131                                 
Phone: 408.727.1885                                  Fax: 408.980.0432

   

Mr. Steven Gatoff

September 25, 2018 

Page 2 

respect of the partial period during which you begin participating in the MIP.  A copy of the MIP is attached for reference as Exhibit
A.  Notwithstanding the foregoing, the Company reserves the right to change the terms of the MIP at any time.

	Stock Awards.

	Initial Equity Grants.  You will receive the following equity awards shortly after the commencement of your employment:

	RSUs (restricted stock units) representing rights to acquire a total of 71,232 shares of 8x8's common stock, vesting over a three-year period, with one-third (1/3)
of the total number of shares subject to the award vesting on the first anniversary of the grant date, and one-eighth (1/8) of the remaining number of shares vesting on a quarterly basis thereafter,
subject to your continued employment or other qualifying association with the Company or any of its subsidiaries; and

	PSUs (performance share units) representing rights to acquire a total of 59,076 shares of common stock (at target), which vest and may be earned in
accordance with the terms and conditions set forth on Exhibit B attached hereto.

We expect that each of these awards will be subject to the terms and conditions of the 8x8, Inc. Amended and Restated 2012 Equity Incentive Plan (the "2012
Plan") and an award agreement between the Company and you in the Company's standard form.

	Share Retention.  You agree to acquire and retain an ownership interest in shares of 8x8 Common Stock whose value equals or exceeds one times (1X) the
amount of your base salary as set forth above in paragraph 2(a).  For avoidance of doubt, any unvested or unearned shares will not be counted towards this requirement.  You will have five years
from your start date in which to meet this stock ownership threshold.  If at any time thereafter, while you remain employed by the Company, your aggregate share ownership as defined in this
paragraph 5 should fall below the threshold, you agree (a) to retain shares as they vest and you acquire them pursuant to any awards granted to you, and (b) not to sell or otherwise transfer any of
your shares of 8x8 common stock (other than in satisfaction of withholding requirements as permitted under the 2012 Plan), until your share ownership equals or exceeds the threshold.  In the event
of a Corporate Transaction (as defined in the 2012 Plan), this paragraph 5 shall cease to apply.

	Severance Benefits.  You will be eligible for benefits under the 8x8, Inc. 2017 Executive Change-in-Control and Severance Policy (the "Policy") as a
Tier Two participant (the Executive Vice President tier), upon the termination of your employment under specified circumstances, or in connection with a Change-in-Control (as defined in the Policy),
subject to the terms and conditions of the Policy and this paragraph 6.  A copy of the Policy, as in effect on the date of this offer letter, is attached for reference as Exhibit C.
Notwithstanding the provisions of the Policy (including, without limitation, Section 4.3 thereof and the Benefits Schedule attached thereto), in the event you experience a Constructive Termination in
Connection with a Change-in-Control, among other severance benefits you would receive from the Company (as provided in the Policy), you will vest in 100% of your outstanding Time-Based Equity
Awards effective as of your date of termination (or, if later, the date of the Change-in-Control), regardless of whether the date of termination or the date of the Change-in-Control (or both)

   

Mr. Steven Gatoff

September 25, 2018 

Page 3 

occurs prior to the 12-month anniversary of your date of hire.  Subject to and upon your execution of this offer letter, the Policy shall be deemed amended solely to the extent necessary to allow you to
receive the vesting benefits described in this paragraph 6, without impacting any benefits to which any other Executive would be entitled, or any other benefits to which you would be entitled, under
the Policy.  Capitalized terms used and not defined in this paragraph 6 shall have the meanings assigned to them in the Policy.

	Benefits.  The Company will make available to you standard vacation, medical and dental insurance benefits.  The Company will also make available to you a
401(k) Plan.  Medical benefits will start on your date of hire, and dental benefits will start on the first day of the month following your date of hire.  You will also be eligible to participate in the
Company's Employee Stock Purchase Plan, the offering periods for which commence on February 1st and August 1st of each year.  A copy of this plan is available at
the SEC's website at https://www.sec.gov/Archives/edgar/data/1023731/000113626117000117/exh10-4.htm.  A summary of benefits is being provided to you with this letter.

	 Standard Confidentiality and Inventions Assignment Agreement.  Like all Company employees, you will be required to sign the Company's standard form of
Confidential Information and Inventions Assignment Agreement (the "Confidentiality Agreement"), which includes provisions relating to the use and disclosure of the Company's
proprietary and confidential information, the assignment of inventions, and the solicitation of Company employees, among other provisions.

	Compliance with Obligations to Former Employers.  During the course of your employment with 8x8, we expect you to comply with any and all duties and
obligations you may have to your former employers (including your current employer), including, for example, prohibitions against the use or disclosure of such employer's confidential information, or
the solicitation of its employees.

 We do not want you to take with you, or to use or disclose during the course of your employment with 8x8, any trade secrets or other confidential or proprietary information of
these other companies.  Prior to commencing your employment with 8x8, we expect you to return or destroy (as directed by your former employer) any confidential information of your former
employer that you may have in your possession or under your control, in accordance with its policies and instructions.  You will not need this information to perform your duties at 8x8, and using
such information would violate 8x8 policies.  8x8 is hiring you for your talents, skills, general industry knowledge and expertise. 

We understand from our discussions with you that working for 8x8 in the role described in this letter will not violate any restrictions against working for competitors or similar
covenants to which you may be subject.  If this is incorrect, please do not sign this letter and contact us as soon as possible to discuss.  We encourage you to consult with a personal
attorney if you have any uncertainty in this regard.

	At-Will Employment; Employee Handbook.  You will be an at-will employee of the Company, meaning that either you or the Company may terminate your
employment at any time, without notice, for any reason or no reason, subject to applicable law.  You will be expected to review and comply with the policies set forth in the Company's Employee
Handbook, which will be made available to you on or around your first day of employment.  

   

Mr. Steven Gatoff

September 25, 2018 

Page 4 

	No Outside Consulting.  You agree not to serve on the board of directors (or in a comparable managerial or supervisory position) of any other organization, nor
to perform any outside consulting work for any other person or organization, while you remain employed full-time at the Company, other than with the advance written approval of the Chief Executive
Officer.  This restriction shall not apply to any positions in which you currently serve and have disclosed in writing to the Company.

	Background Check.  This offer letter is contingent upon satisfactory results of a background check and reference checks (which you hereby authorize the
Company to conduct), and it may be rescinded at any time in the event either such check fails to meet the Company's reasonable and lawful requirements.  In addition, this offer letter is contingent
on your demonstrating your right to work in the United State in accordance with applicable law.  Subject to your authorization, the Company will begin the background check and reference check
process promptly and endeavor to complete it as expeditiously as reasonably practicable.

	Acceptance; Expiration.  You will be deemed to have accepted this offer when the Company receives your signed counterpart to this offer letter.  This offer will
expire at 5:00pm Pacific Time on October 10, 2018.  Subject to paragraph 12 of this offer letter, this offer will not be revoked by 8x8, and it will
remain open until your acceptance or its earlier expiration, in each case as provided in this paragraph 13.

	Start Date.  Your employment with the Company will commence effective on a mutually agreed upon date no later than October 15, 2018.

 

Congratulations on joining the team!
Sincerely,

 

By: /s/ Vikram Verma

      Vikram Verma

       Chief Executive Officer

ACCEPTED:

/s/  Steven Gatoff

  Steven Gatoff

Date: September 25, 2018

   

Mr. Steven Gatoff

September 25, 2018 

Exhibits to Offer Letter

   

   

   

Exhibit A

8x8, Inc. Amended and Restated Management Incentive Bonus Plan

 

[See attached]*

 

   

   

   

   

* This document was filed as Exhibit 10.4 to the Registrant's Annual Report on Form 10-K for the fiscal year ended March 31, 2018, filed on May 30, 2018. 

   

Mr. Steven Gatoff

September 25, 2018 

Exhibits to Offer Letter

   

   

Exhibit B

PSU Vesting Schedule

PSUs will vest (1) as to 50% of the total number of "on-target" shares, on the second anniversary of the grant date, and (2) as to the remaining 50% of the
total number of "on-target" shares, on the third anniversary of the grant date, in each case subject to performance of the Company's Common Stock relative to the Russell 2000 Index
during the period from grant date through the applicable vesting date, with 100% of the applicable tranche vesting if the total shareholder return (TSR) of the Company's Common Stock equals the
TSR of the Russell 2000 Index over the applicable measurement period.  The number of PSUs that vest will be increased (or decreased), relative to target, by 2% for each 1% positive (or negative)
difference in the TSR of the Company's Common Stock relative to the TSR of the Russell 2000 Index; provided, however, (1) in the event the TSR of the Company's Common Stock is more than
30% lower than the TSR of the Russell 2000 Index for the applicable measurement period, no PSUs of the applicable tranche shall vest, and (2) in no event will the total number of PSUs that vest in
the event of a positive difference in the TSR of the Company's Common Stock relative to the TSR of the Russell 2000 Index exceed 200% of the total number of "on-target" PSUs in the
applicable tranche.

TSR shall be determined on a percentage basis based on the change in value of a $100 investment in Company Common Stock and the Russell 2000 Index, respectively,
made on the grant date, including deemed reinvestment of dividends. Fair market value of Company Common Stock and the Russell 2000 Index on any particular date shall be the 30-day trading
average price for the period prior to and through the date of determination.  

In addition and notwithstanding anything herein to the contrary, all vesting is subject to continued employment or other association with the Company or any of its subsidiaries
through the end of the applicable measurement period.

 

 

 

 

   

Mr. Steven Gatoff

September 25, 2018 

Exhibits to Offer Letter

   

   

Exhibit C

8x8, Inc. 2017 Executive Change-in-Control and Severance Policy

 

[See attached]

 

 

   

   

   

   

* This document was filed as Exhibit 10.3 to the Registrant's Annual Report on Form 10-K for the fiscal year ended March 31, 2018, filed on May 30, 2018. 

   

   

October 23, 2018

VIA E-MAIL

Mr. Steven Gatoff 

RE:Performance Share Unit Award

Dear Steven,

On behalf of 8x8, Inc., a Delaware corporation ("8x8," or the "Company"), I am pleased to inform you that the Board of Directors has approved the award to
you of performance share units ("PSUs") representing rights to acquire a total of 71,232 shares of the Company's common stock (at target).  These PSUs were granted in
lieu of the PSU award for 59,076 shares of common stock (at target) referenced in your offer letter dated September 25, 2018.  All other terms of the PSU award granted to you are
consistent with the terms referenced in your offer letter.

This letter further confirms that your appointment as Chief Financial Officer will be effective as of November 1, 2018.

Sincerely,

 

By: /s/ Vikram Verma

  Vikram Verma

      Chief Executive Officer

   

   

   

8x8, Inc.                                 
2125 O'Nel Drive                                 
San Jose, CA  95131                                 
Phone: 408.727.1885                                  Fax: 408.980.0432Q2 2019 Exhibit 10.39

Exhibit 10.39

November 5, 2018

Mary Ellen Genovese

RE:8x8, Inc. Managing Director of European Operations

Dear Mary Ellen,

This letter supersedes and replaces in its entirety the employment agreement between you and 8x8, Inc. ("8x8" or "the Company") dated October 6, 2014, as amended to date.  This
letter confirms that, effective as of November 1, 2018, you ceased serving as the Company's Chief Financial Officer and became the Managing Director of European Operations.  The terms of your new employment relationship
with the Company, effective as of November 1, 2018, will be as set forth below.

	Position. Your position will be Managing Director of European Operations. You will cease to be an Executive Vice President of the Company, but you will continue to report to the Company's
Chief Executive Officer.  As such, you will have responsibilities as determined by the Company's Chief Executive Officer.  You will promptly relocate to the Company's London office
and will work from that office until on or around May 31 2019 (but no later than June 14, 2019), at which time
you will return to the United States and continue to be employed by the Company on a part-time basis until September 30, 2019.  Your duties and responsibilities are subject to change depending on the needs of the Company.
Subject to further advice from employment and tax counsel in the United States and United Kingdom, you may become a temporary employee of 8x8 UK Limited for the duration of your employment in the United Kingdom.

Unless you and the Company agree otherwise, you will cease to serve as director of each subsidiary of which you currently serve as a director, other than 8x8 UK Limited.  You will remain a director of
8x8 UK Limited until the Company's appointment of a successor, or until your earlier removal or resignation.

	Termination Date.  Your employment with the Company will terminate on September 30, 2019 (the "Termination Date"), unless you and the Company mutually agree to alter this
date, and otherwise subject to the terms and conditions of this offer letter.

	Compensation.

	Base Salary. You will be paid an annualized salary of $290,000 payable in accordance with the Company's standard payroll policies subject to normal required withholding.

	Expenses. You will be provided with a lump-sum payment of $50,000 to offset your housing costs while living in the UK.  You will be reimbursed for all reasonable and necessary
business expenses incurred in the performance of your duties as provided in the Company's Employee Handbook.  

8x8, Inc.                                 
2125 O'Nel Drive                                 
San Jose, CA  95131                                 
Phone: 408.727.1885                                  Fax: 408.980.0432

	Management Incentive Plan. You will be eligible to participate in the Company's Management Incentive Plan while you are a full-time employee, with a target annual bonus of 50% of
your annual base salary, and otherwise on substantially the same terms as your current participation.

	Stock Awards; No Participation in Policies.  

	You will not be entitled to any additional awards of stock-based compensation, but your existing equity awards will continue to vest subject to your continued employment or other qualifying association
with the Company or any of its subsidiaries, in accordance with the terms and conditions of such equity awards, and further subject to this Section 4.

	Except as set forth in Section 4(c) below, as of the Effective Date, you shall no longer be eligible to participate in any change-in-control or severance policies or agreements, including but not limited to,
the 8x8, Inc. 2015 Amended and Restated Executive Change-in-Control and Severance Policy (Amended and Restated as of October 1, 2017) and the 8x8, Inc. 2017 Executive Change-in-Control and Severance Policy.

	Involuntary Termination: In the event that you are subject to an Involuntary Termination (as defined below) prior to the Termination Date, including due to a Change-in-Control, then (to the
extent the underlying shares have not vested between the date of this letter and the date of your Involuntary Termination) the RSU awards and options listed on Exhibit A hereto will accelerate and vest as to the number
of shares set forth for each award in Exhibit A.  With respect to PSUs, the performance period shall be deemed to end on the date of the termination of your employment (the "Involuntary Termination Date"),
and you will receive shares of stock based on the Company's performance through the Involuntary Termination Date (i.e., at 100% target, you would receive the number of shares set forth for each award in Exhibit A).

"Involuntary Termination" means without your express written consent, a termination of your employment with the Company without Cause that prevents continued vesting of your unvested equity.   

"Cause" means: (i) any act of personal dishonesty taken by you in connection with your responsibilities in your service to the Company which is intended to result in your personal enrichment; (ii) your
conviction of a felony; (iii) any act by you that constitutes material misconduct and is injurious to the Company; (iv) any breach of fiduciary duty to the company, (v) a material breach of any agreement with the Company, or (vi)
your initiating litigation against the Company (excluding any litigation to enforce the Company's compliance with the terms of this agreement).  For purposes of this clause (d), "Company" includes the Company and
each of its subsidiaries.

"Change-in-Control" means the consummation of any of the following corporate transactions: 

8x8, Inc.                                 
2125 O'Nel Drive                                 
San Jose, CA  95131                                 
Phone: 408.727.1885                                  Fax: 408.980.0432

	an acquisition in one or more related transactions of 45% or more of the Company's common stock or voting securities by a "person" (as defined in Sections 13(d) and 14(d) of the
Securities Exchange Act, but excluding the Company, any employee benefit plan of the Company and any corporation controlled by the Company's stockholders) or multiple "persons" acting as a group; 

	a complete liquidation or dissolution of the Company; 

	a sale, transfer or other disposition of all or substantially all of the Company's assets; or 

	a merger, consolidation or reorganization (collectively, a "Business Combination") other than a Business Combination in which (i) the stockholders of the Company receive 50% or more of
the stock of the corporation resulting from the Business Combination and (ii) at least a majority of the board of directors of such resulting corporation were incumbent directors of the Company immediately prior to the
consummation of the Business Combination and (iii) after which no individual, entity or group (excluding any corporation or other entity resulting from the Business Combination or any employee benefit plan of such corporation or
of the Company) who did not own 45% or more of the stock of the resulting corporation or other entity immediately before the Business Combination owns 45% or more of the stock of such resulting corporation or other entity.

	Benefits. The Company will continue to make available to you standard medical, dental, life and disability insurance benefits, as well a 401(k) Plan, and Employee Stock Purchase
Plan.

	Standard Confidentiality and Inventions Assignment Agreement. You will remain bound by the Company's standard Confidential Information and Inventions
Assignment Agreement (the "Confidentiality Agreement") which you signed on July 1, 2014.

	At-Will Employment. You will continue to be an employee-at-will, meaning that either you or the Company may terminate your employment at any time, without notice, for
any reason or no reason without further obligation or liability to either party, except as provided in Section 4(c) regarding an Involuntary Termination. Such termination will not affect the parties' respective obligations under the
Confidentiality Agreement. 

	No Outside Consulting. You agree to not sit on any board of directors of, or do any outside consulting work for, any other unaffiliated person or company while employed at the Company other
than with the advance written approval of the Chief Executive Officer of the Company.

Please indicate your acceptance by signing and returning a copy of the signed letter to me via DocuSign or email.

8x8, Inc.                                 
2125 O'Nel Drive                                 
San Jose, CA  95131                                 
Phone: 408.727.1885                                  Fax: 408.980.0432

Congratulations on your new assignment!

Sincerely,

By: /s/Vikram Verma      

      Vikram Verma

       Chief Executive Officer

AGREED AND ACCEPTED:

 /s/Mary Ellen Genovese     

Mary Ellen Genovese

Date: November 6, 2018

   

   

   

8x8, Inc.                                 
2125 O'Nel Drive                                 
San Jose, CA  95131                                 
Phone: 408.727.1885                                  Fax: 408.980.0432

Exhibit A

	
Grant DateType
	
Vest Date
	
Shares to Vest
	
Notes
	
	
9/22/2015
	
ISO
	
9/22/2019
	
                                         10,443 
	
 

	
9/22/2015
	
RSU
	
9/22/2019
	
                                      13,923 
	
 

	
9/20/2016
	
RSU
	
9/20/2019
	
                                       11,975 
	
 

	
9/19/2017
	
RSU
	
9/19/2019
	
                                      16,892 
	
 

	
9/20/2016
	
PSU
	
9/20/2019
	
                                       17,838 
	
50% of total award target referenced; actual number of shares subject to performance achievement at the close of the performance period. 

	
9/19/2017
	
PSU
	
9/20/2019
	
                                      27,694 
	
50% of total award target referenced; actual number of shares subject to performance achievement at the close of the performance period. 

   

   

   

8x8, Inc.                                 
2125 O'Nel Drive                                 
San Jose, CA  95131                                 
Phone: 408.727.1885                                  Fax: 408.980.0432

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