Document:

EX-10.7

 Exhibit 10.7 

SYNOPSYS, INC. 
 EMPLOYEE
STOCK PURCHASE PLAN 
 (As amended by approval of the Board of Directors on December 15, 2015 

and approved by the stockholders on April 5, 2018) 
  

	I.	PURPOSE 

 The Synopsys, Inc. Employee Stock Purchase Plan (the “Plan”) is
intended to provide Eligible Employees of the Company and one or more of its Corporate Affiliates with the opportunity to acquire a proprietary interest in the Company through purchases of shares of the Company’s common stock. 

 

	II.	DEFINITIONS 

 For purposes of the Plan, the following terms shall have the meanings
indicated. 
 Board means the Company’s Board of Directors or its delegate, as applicable, to the extent the Board has delegated
its authority to administer the Plan pursuant to Section III. 
 Code means the Internal Revenue Code of 1986, as amended from time
to time. 
 Committee means a committee of Board members that will satisfy Rule 16b-3 of the
Securities and Exchange Commission, as in effect with respect to the Company from time to time. 
 Company means Synopsys, Inc., a
Delaware corporation, and any corporate successor to all or substantially all of the assets or voting stock of Synopsys, Inc. that shall by appropriate action adopt the Plan. 

Common Stock means shares of the Company’s common stock. 

Corporate Affiliate means any “parent” or “subsidiary” of the Company as such terms are defined in Rule 405 of the
Securities Act, including any such parent or subsidiary that becomes such after the Effective Date. 
 Earnings has the meaning
ascribed to it in the applicable Offering Document. 
 Effective Date means January 27, 2010, the date this amended and restated
Plan was approved by the Board. 
 Eligible Employee means an Employee who meets the requirements set forth in the applicable
Offering Document for eligibility to participate in the Offering, provided that such Employee also meets the requirements for eligibility to participate set forth in the Plan. 

Employee means any person who is treated as an employee in the records of the Company or a Corporate Affiliate. However, service solely
as a director, or payment of a fee for such services, shall not cause a director to be considered an “Employee” for purposes of the Plan. 

Fair Market Value means fair market value per share of Common Stock, as determined on any relevant date in accordance with the
following procedures: 
 (i) If the Common Stock is listed on any established stock exchange or traded on any established
market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the date of
determination, as reported in such source as the Board deems reliable. Unless otherwise provided by the Board, if there is no closing sales price for the Common Stock on the date of determination, then the Fair Market Value shall be the closing
selling price (or closing bid if no sales were reported) on the last preceding date for which such quotation exists. 
 (ii)
In the absence of such markets for the Common Stock, then the Fair Market Value per share of the Common Stock on such date shall be determined by the Board, after taking into account such factors as the Board deems appropriate. 

Offering means the grant of Purchase Rights to purchase shares of Common Stock under the Plan to Eligible Employees under terms
approved by the Board and set forth in an Offering Document. 

  
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 Offering Date means a date selected by the Board for an Offering to commence and specified
in the Offering Document. 
 Offering Document means the document setting forth the terms of an Offering as approved by the Board.

 Offering Period means the duration of an Offering, as set forth in the Offering Document. 

Original Effective Date means the first day of the initial Offering scheduled to commence upon the later of (i) February 1,
1992 or (ii) the effective date of the S-8 Registration Statement covering the shares of Common Stock issuable under the Plan. 

Participant means any Eligible Employee of a Participating Company who is actively participating in the Plan. 

Participating Company means the Company and such Corporate Affiliate or Corporate Affiliates as may be designated from time to time by
the Board, the Employees of which may qualify as Eligible Employees that may participate in an Offering. 
 Period of Participation
means each period for which the Participant actually participates in an Offering. 
 Plan Administrator means any Committee or other
group of persons that has been delegated authority to administer the Plan pursuant to Section III.A. 
 Purchase Date means one or
more dates during an Offering established by the Board and set forth in the Offering Document on which Purchase Rights shall be exercised and purchases of shares of Common Stock shall be carried out in accordance with such Offering. 

Purchase Right means an option to purchase shares of Common Stock granted pursuant to the Plan under the terms set forth in the Plan
and the applicable Offering Document. 
 Securities Act means the Securities Act of 1933, as amended. 

 

	III.	ADMINISTRATION 

 A. The Plan shall be administered by the Board or its designee (each
such designee is a “Plan Administrator”). As of the Effective Date, the Board has designated the Compensation Committee of the Board as the Plan Administrator. The Board or its Compensation Committee may from time to time select another
committee or persons to be responsible as Plan Administrator for any Plan transactions not subject to Rule 16b-3, which Plan Administrator shall be subject to the overall supervision of the Compensation
Committee or the Board, as applicable. Unless otherwise specified herein, the Plan Administrator shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Plan
Administrator, including the power to delegate to a Committee or other persons any of the administrative powers the Plan Administrator is authorized to exercise (and except as otherwise specifically provided herein, all references to the Board in
this Plan or in any Offering Document shall thereafter be deemed references to the Plan Administrator or its designee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by
the Board. The Board retains the authority to concurrently administer the Plan with the Plan Administrator and may, at any time, revest in the Board some or all of the powers previously delegated to the Plan Administrator. 

B. The Board may administer, interpret and amend the Plan in any manner it believes to be desirable (including amendments to outstanding
Purchase Rights and the designation of a brokerage firm at which accounts for the holding of shares purchased under the Plan must be established by each Eligible Employee desiring to participate in the Plan), and any such interpretation shall be
final and binding on all parties who have an interest in the Plan. 
 C. Any Plan Administrator that is not a Committee may not, without the
approval of the Board, or without stockholder approval to the extent required under Section X: (i) increase the number of shares issuable under the Plan, except that the Plan Administrator shall have the authority, exercisable without such
approval, to effect adjustments to the extent necessary to reflect changes in the Company’s capital structure pursuant to Section VI.B; (ii) alter the purchase price formula so as to reduce the purchase price payable for the shares
issuable under the Plan; or (iii) materially increase the benefits accruing to Participants under the Plan or materially modify the requirements for eligibility to participate in the Plan. 

  
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	IV.	OFFERINGS 

 A. The Board may from time to time grant Purchase Rights to purchase shares
of Common Stock under the Plan to Eligible Employees in an Offering (consisting of one or more Periods of Participation) on an Offering Date or Offering Dates selected by the Board and as specified in an Offering Document. Each Offering Document
shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate, which shall comply with the terms of the Plan, and which shall designate the Participating Companies for such Offering. Unless otherwise
specifically provided in the Offering Document, with respect to each Offering in effect under the Offering Document each Participating Company shall be considered for purposes of the Plan to have its own separate Offering for the Eligible Employees
employed by such Participating Company, so that no two Participating Companies shall participate in the same Offering. 
 B. The terms and
conditions of an Offering shall be set forth in an Offering Document that is incorporated by reference into the Plan and treated as part of the Plan. The provisions of separate Offerings under the Plan need not be identical, but each Offering
Document shall include (through incorporation of the provisions of this Plan by reference in the Offering Document) the Offering Period, which period shall not exceed twenty-seven (27) months beginning with the Offering Date, and the substance
of the provisions contained in Sections IV through VII, inclusive. 
 C. If a Participant has more than one Purchase Right outstanding under
the Plan, unless he or she otherwise indicates in agreements or notices delivered hereunder: (i) each agreement or notice delivered by that Participant shall be deemed to apply to all of his or her Purchase Rights under the Plan, and
(ii) a Purchase Right with a lower exercise price (or an earlier-granted Purchase Right, if different Purchase Rights have identical exercise prices) shall be exercised to the fullest possible extent before a Purchase Right with a higher
exercise price (or a later-granted Purchase Right if different Purchase Rights have identical exercise prices) shall be exercised. 
 D. The
Board shall have the discretion to structure an Offering so that if the Fair Market Value of the shares of Common Stock on the first day of a new Purchase Period within that Offering is less than or equal to the Fair Market Value of the shares of
Common Stock on the Offering Date, then (i) that Offering shall terminate immediately, and (ii) the Participants in such terminated Offering shall be automatically enrolled in a new Offering beginning on the first day of such new Purchase
Period. 
  

	V.	ELIGIBILITY 

 A. Purchase Rights may be granted only to employees of the Company or, as
the Board may designate, to employees of a Corporate Affiliate. Except as provided in Section V.B, an Employee shall not be eligible to be granted Purchase Rights under the Plan unless, on the Offering Date, such Employee has been in the employ of
the Company or a Corporate Affiliate, as the case may be, for such continuous period preceding such Offering Date as the Board may require pursuant to the Offering Document, but in no event shall Offerings intended to qualify under Code
Section 423 require that the period of continuous employment be greater than two (2) years. In addition, the Board may provide in the Offering Document that no employee shall be eligible to be granted Purchase Rights under the Plan unless,
on the Offering Date, such employee’s customary employment with the Company or the Corporate Affiliate is for more than twenty (20) hours per week (or such lesser number of hours per week as the Board may approve for an Offering) and more
than five (5) months per calendar year (or such lesser number of months per calendar year as the Board may approve for the Offering). 

B. The Board may provide in an Offering Document that each person who, during the course of an Offering, first becomes an Eligible Employee
shall, on a date or dates specified in the Offering Document which coincides with the day on which such person becomes an Eligible Employee or that occurs thereafter, receive a Purchase Right under that Offering, which Purchase Right shall
thereafter be deemed to be a part of that Offering. Such Purchase Right shall have the same characteristics as any Purchase Rights originally granted under that Offering, as described herein, except that: 

(i) the date on which such Purchase Right is granted shall be the “Offering Date” of such Purchase Right for all
purposes, including determination of the exercise price of such Purchase Right; 
 (ii) the period of the Offering with
respect to such Purchase Right shall begin on its Offering Date and end coincident with the end of such Offering; and 

(iii) the Board may provide that if such person first becomes an Eligible Employee within a specified period of time before the
end of the Offering, he or she shall not receive any Purchase Right under that Offering. 

  
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 C. No Employee shall be eligible for the grant of any Purchase Rights under the Plan if,
immediately after any such Purchase Rights are granted, such Employee owns stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any Corporate Affiliate. For purposes
of this Section V.C., the rules of Section 424(d) of the Code shall apply in determining the stock ownership of any Employee, and stock that such Employee may purchase under all outstanding Purchase Rights shall be treated as stock owned by
such Employee. 
 D. As specified by Section 423(b)(8) of the Code, an Eligible Employee may be granted Purchase Rights under the Plan
only if such Purchase Rights, together with any other rights granted under all employee stock purchase plans of the Company and any Corporate Affiliates, do not permit such Eligible Employee’s rights to purchase stock of the Company or any
Corporate Affiliate to accrue at a rate that exceeds twenty five thousand dollars ($25,000) of Fair Market Value of such stock (determined at the time such rights are granted and, with respect to the Plan, as of their respective Offering Dates) for
each calendar year in which such rights are outstanding at any time. Notwithstanding the foregoing, such limitation shall not apply to Eligible Employees participating in an Offering that is not intended to qualify as a qualified employee stock
purchase plan offering under Code Section 423, unless otherwise provided in the Offering Document. 
 E. Officers of the Company and
any designated Corporate Affiliate, if they are otherwise Eligible Employees, shall be eligible to participate in Offerings under the Plan. Notwithstanding the foregoing, the Board may provide in an Offering that Employees who are highly compensated
Employees within the meaning of Section 423(b)(4)(D) of the Code shall not be eligible to participate. 
  

	VI.	STOCK SUBJECT TO PLAN 

 A. The Common Stock purchasable by Participants under the Plan
shall, solely in the discretion of the Board, be made available from either authorized but unissued shares of the Common Stock or from shares of Common Stock reacquired by the Company, including shares of Common Stock purchased on the open market.
The total number of shares that may be issued under the Plan shall not exceed 50,700,000 shares. If any Purchase Right granted under the Plan shall for any reason terminate without having been exercised, the shares of Common Stock not purchased
under such Purchase Right shall again become available for issuance under the Plan. 
 B. In the event any change is made to the
Company’s outstanding Common Stock by reason of any stock dividend, stock split, combination of shares or other change affecting such outstanding Common Stock as a class without receipt of consideration, then appropriate adjustments shall be
made by the Board to (i) the class and maximum number of shares issuable over the term of the Plan, (ii) any share limitations in an Offering on the maximum number of shares purchasable under the Offering; and (iii) the class and
number of shares and the price per share of the Common Stock subject to each Purchase Right at the time outstanding under the Plan. Such adjustments shall be designed to preclude the dilution or enlargement of rights and benefits under the Plan.

  

	VII.	PURCHASE RIGHTS; PURCHASE PRICE 

 A. Maximum Payroll Deductions. The maximum
payroll deduction authorized by the Participant for purposes of acquiring shares of Common Stock under the Plan will be designated by the Board in the Offering Document for the Offering and may not exceed a maximum of fifteen percent (15%) of
the Participant’s Earnings (as defined by the Board in such Offering Document) paid to the Participant for payroll periods that are applicable to the Offering Period, as established by the Board for such Offering. 

B. Enrollment Agreement. An Employee who participates in the Plan for a particular Offering must complete and submit to the Company an
enrollment agreement in the form and in accordance with the procedures prescribed by the Board (which may include electronic enrollment). Each such enrollment agreement shall authorize an amount of payroll deductions expressed as a percentage of the
submitting Participant’s Earnings (as defined in each Offering Document) for payroll periods that are applicable to the Offering Period (not to exceed the maximum percentage specified by the Board in the Offering Document). To the extent
provided in the Offering Document, a Participant may thereafter reduce (including to zero) or increase his or her payroll deductions. 
 C.
Purchase Price. Common Stock shall be issuable on any Purchase Date at a purchase price equal to 85 percent of the lower of (i) the Fair Market Value per share on the Offering Date or (ii) the Fair Market Value per share on the
Purchase Date. 
 D. Number of Purchasable Shares. The number of shares purchasable per Participant on each Purchase Date within an
Offering shall be the number of whole shares obtained by dividing the amount collected from the 

  
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Participant through payroll deductions applicable to the Offering Period (after conversion into U.S. Dollars, if necessary) by the purchase price in effect on the Purchase Date. In connection
with each Offering made under the Plan, the Board may specify (i) a maximum number of shares of Common Stock that may be purchased by any Participant on any Purchase Date during such Offering, and (ii) a maximum aggregate number of shares
of Common Stock that may be purchased by all Participants pursuant to such Offering. In addition, in connection with each Offering that contains more than one Purchase Date: (i) the Board may specify a maximum aggregate number of shares of
Common Stock that may be purchased by all Participants on any Purchase Date under the Offering, and (ii) if the aggregate purchase of shares of Common Stock issuable upon exercise of Purchase Rights granted under the Offering would exceed any
such maximum aggregate number, then, in the absence of any Board action otherwise, a pro rata allocation of the shares of Common Stock available shall be made in as nearly a uniform manner as shall be practicable and equitable. 

E. Condition to Exercise of Purchase Rights. No Purchase Rights may be exercised to any extent unless the shares of Common Stock to be
issued upon such exercise under the Plan are covered by an effective registration statement pursuant to the Securities Act of 1933 (as amended) and the Plan is in material compliance with all applicable federal, state, foreign and other securities
and other laws applicable to the Plan. If on a Purchase Date during any Offering the shares of Common Stock are not so registered or the Plan is not in such compliance, no Purchase Rights of any Offering shall be exercised on such Purchase Date, and
the Purchase Date shall be delayed until the shares of Common Stock are subject to such an effective registration statement and the Plan is in such compliance, except that the Purchase Date shall not be delayed more than twelve (12) months and
the Purchase Date shall in no event be more than twenty-seven (27) months from the Offering Date for the Offering. If, on the Purchase Date under any Offering, as delayed to the maximum extent permissible, the shares of Common Stock are not
registered and the Plan is not in such compliance, no Purchase Rights of any outstanding Offering shall be exercised and all contributed payroll deductions that accumulated during the Offering (reduced to the extent, if any, such contributions have
been used to acquire shares of Common Stock) shall be distributed to the Participants without interest (unless otherwise required by applicable law). The Company shall seek to obtain from each federal, state, foreign or other regulatory commission
or agency having jurisdiction over the Plan such authority as may be required to issue and sell shares of Common Stock upon exercise of the Purchase Rights. If, after commercially reasonable efforts, the Company is unable to obtain from any such
regulatory commission or agency the authority that counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock
upon exercise of such Purchase Rights unless and until such authority is obtained. 
 F. Payment. Payment for the Common Stock
purchased under the Plan shall be effected by means of the Participant’s authorized payroll deductions (after conversion into U.S. Dollars, if necessary) accumulated for the Period of Participation. The amounts so collected shall be credited to
the Participant’s bookkeeping account under the Plan, but no interest shall be paid on the balance outstanding in such account. The amounts collected from a Participant may be commingled with the general assets of the Company and may be used
for general corporate purposes. To the extent specifically provided in the Offering Document, in addition to making contributions by payroll deductions, a Participant may make contributions through the payment by cash or check prior to each Purchase
Date of the Offering. 
 G. Termination of Purchase Right. Unless otherwise provided in the Offering Document, the following
provisions shall govern the termination of outstanding Purchase Rights in effect under the Offering: 
 (i) A Participant
may, at any time prior to the last five (5) business days of the Period of Participation, terminate his /her outstanding Purchase Right under the Plan by filing the prescribed notification form with the Board. No further payroll deductions
shall be collected from the Participant with respect to the terminated Purchase Right, and any payroll deductions collected for the Period of Participation in which such termination occurs shall be refunded without interest (unless otherwise
required by applicable law). 
 (ii) The termination of such Purchase Right shall be irrevocable, and the Participant may not
subsequently rejoin the Offering for which such terminated Purchase Right was granted. In order to resume participation in any subsequent Offering, such individual must re-enroll in the Plan. 

H. Stock Purchase. Shares of Common Stock shall automatically be purchased on behalf of each Participant (other than Participants whose
payroll deductions have previously been refunded or set aside for refund 

  
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in accordance with the “Termination of Purchase Right” provisions above) on each Purchase Date (after conversion into U.S. Dollars, if necessary). The purchase shall be effected by
applying each Participant’s payroll deductions accumulated for the Period of Participation ending on such Purchase Date (plus any payments by cash or check to the extent permitted in the Offering Document) to the purchase of whole shares of
Common Stock (subject to the limitation on the maximum number of purchasable shares set forth above) at the purchase price in effect on such Purchase Date. Any payroll deductions not applied to such purchase (a) because insufficient to purchase
a whole share or (b) by reason of the limitation on the maximum number of shares purchasable by the Participant on such Purchase Date shall be promptly refunded to the Participant without interest (unless otherwise required by applicable law).
No fractional shares shall be issued upon the exercise of Purchase Rights. 
 I. Rights as Stockholder. A Participant shall have no
stockholder rights with respect to the shares subject to his/her outstanding Purchase Right until the shares are actually purchased on the Participant’s behalf in accordance with the applicable provisions of the Plan. No adjustments shall be
made for dividends, distributions or other rights for which the record date is prior to the date of such purchase. 
 J.
Assignability. No Purchase Right granted under the Plan shall be assignable or transferable by the Participant other than by will or by the laws of descent and distribution following the participant’s death, and during the
Participant’s lifetime the Purchase Right shall be exercisable only by the Participant. 
 K. Change in Ownership. Should the
Company or its stockholders enter into an agreement to dispose of all or substantially all of the assets or outstanding capital stock of the Company by means of: 

(i) a sale, merger or other reorganization in which the Company will not be the surviving corporation (other than a
reorganization effected primarily to change the State in which the Company is incorporated), or 
 (ii) a reverse merger in
which the Company is the surviving corporation but in which more than fifty percent (50%) of the Company’s outstanding voting stock is transferred to holders different from those who held the stock immediately prior to the reverse merger,

 then all outstanding Purchase Rights under the Plan shall automatically be exercised immediately prior to the consummation of such sale, merger,
reorganization or reverse merger by applying the accumulated payroll deductions of each Participant (after conversion into U.S. Dollars, if necessary) for the Period of Participation in which the transaction occurs to the purchase of whole shares of
Common Stock at eighty-five percent (85%) of the lower of (i) the Fair Market Value per share on the Offering Date for the Offering in which such transaction occurs or (ii) the Fair Market Value per share immediately prior to the
consummation of such transaction. However, the applicable share limitations of Section V and any share purchase limitations set forth in the Offering Document shall continue to apply to any such purchase. The Company shall use its best efforts to
provide at least ten (10) days’ advance written notice of the occurrence of any such sale, merger, reorganization or reverse merger, and Participants shall, following the receipt of such notice, have the right to terminate their
outstanding Purchase Rights in accordance with the applicable provisions of this Section VII. 
  

	VIII.	STATUS OF PLAN UNDER FEDERAL TAX LAWS 

 The Plan is designed to qualify as an employee
stock purchase plan under Code Section 423, so that Offerings under the Plan may qualify as qualified employee stock purchase plan offerings under Code Section 423, and all shares reserved for issuance under the Plan may be issued pursuant
to the exercise of Purchase Rights that qualify as qualified employee stock purchase rights under Code Section 423. However, the Board may in its sole discretion determine to approve Offerings under the Plan that are not intended to meet the
requirements of Code Section 423, including, without limitation, Offerings in which Eligible Employees who are not subject to U.S. tax laws may participate. 

  
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	IX.	AMENDMENT AND TERMINATION 

 A. The Board may amend, alter, suspend, discontinue, or
terminate the Plan at any time, including amendments to outstanding Purchase Rights. Subject to the requirements of Section III, the Plan Administrator may amend the Plan and outstanding Purchase Rights. However, stockholder approval shall be
required for any amendment of the Plan that: 
 (i) increase the number of shares issuable under the Plan, except that the
Board shall have the authority, exercisable without such stockholder approval, to effect adjustments to the extent necessary to reflect changes in the Company’s capital structure pursuant to Section VI.B; 

(ii) alter the purchase price formula so as to reduce the purchase price payable for the shares issuable under the Plan; or

 (iii) materially increase the benefits accruing to Participants under the Plan or materially modify the requirements for
eligibility to participate in the Plan; 
 but in each of (i) through (iii) above only to the extent stockholder approval is required by
applicable law or listing requirements. 
 B. The Board may elect to terminate any or all outstanding Purchase Rights at any time. In the
event the Plan is terminated, the Board may also elect to terminate outstanding Purchase Rights either immediately or upon completion of the purchase of shares on the next Purchase Date, or may elect to permit Purchase Rights to expire in accordance
with their terms (and participation to continue through such expiration dates). If Purchase Rights are terminated prior to expiration, all funds contributed to the Plan that have not been used to purchase shares shall be returned to the Participants
as soon as administratively feasible. 
  

	X.	GENERAL PROVISIONS 

 A. The Plan originally became effective on the Original Effective
Date. This amended and restated Plan document became effective on the Effective Date. 
 B. All costs and expenses incurred in the
administration of the Plan shall be paid by the Company. 
 C. Neither the action of the Company in establishing the Plan, nor any action
taken under the Plan by the Board, nor any provision of the Plan itself shall be construed so as to grant any person the right to remain in the employ of the Company or any of its Corporate Affiliates for any period of specific duration. 

D. The provisions of the Plan shall be governed by the laws of the State of California without resort to that State’s conflict-of-laws rules. 
 E. If the Board in its discretion so
elects, it may retain a brokerage firm, bank, or other financial institution to assist in the purchase of shares, delivery of reports, or other administrative aspects of the Plan. If the Board so elects, each Participant shall (unless prohibited by
the laws of the nation of his or her employment or residence) be deemed upon enrollment in the Plan to have authorized the establishment of an account on his or her behalf at such institution. If the Board in its discretion so elects, shares
purchased by a Participant under the Plan shall be held in the account in the name in which the share certificate would otherwise be issued pursuant to Section VII until such shares are sold. 

  
 7Exhibit

April 3, 2018

Critical Executive: Ms. Karen Hoguet

Macy’s, Inc. values the critical nature of the work Karen Hoguet performs as Chief Financial Officer and Ms. Hoguet’s contributions are important to Macy’s success.  Because Ms. Hoguet has indicated her intent to retire in 2018 and Macy’s, Inc. desires to have Ms. Hoguet remain through the end of its fiscal year 2018 to ensure a seamless and successful transition to the next Chief Financial Officer once hired, a retention package is being offered to Ms. Hoguet as set forth below.  During the period in which Ms. Hoguet continues to be employed by Macy’s, Inc., she shall continue to serve as Chief Financial Officer of Macy’s, Inc. unless and until a successor Chief Financial Officer is appointed, at which point Ms. Hoguet shall continue to be employed and serve as an advisor to such successor Chief Financial Officer and provide transition services through the end of the Retention Period (as defined below).  For as long as Ms. Hoguet’s employment with Macy’s, Inc. continues, Ms. Hoguet’s current principal place of employment shall not be relocated, she shall continue to be covered under all applicable benefit plans of Macy’s, Inc. in the same manner and to the same extent as she is currently covered (except as otherwise expressly provided herein), and she shall continue to be covered under any applicable indemnification agreements or policies and directors’ and officers’ and any other applicable third party liability insurance policies.

		
	1.
	The Parties

This retention agreement (“Retention Agreement”) is entered into by Karen Hoguet (“Executive”) and Macy’s, Inc. (“Macy’s”, and together with all of its predecessors, successors, and assigns, divisions, subsidiaries, facilities, related or affiliated entities, collectively referred to as the “Company”). 

		
	2.
	Retention Bonus; Retention Period

		
	a.
	The Company will provide Executive with a retention bonus payment (“Retention Bonus”) separate and apart from any annual bonus opportunity for which Executive may be eligible.  The Retention Bonus will be a lump sum cash payment equal to Five Hundred Thousand Dollars ($500,000), less normal withholdings.  Executive’s retention period is from April 3, 2018 through the end of fiscal year 2018 (i.e., February 2, 2019) (the “Retention Period”).  The Retention Bonus will be paid in a cash lump sum following completion of the Retention Period (but in no event later than February 15, 2019), subject to Executive’s continued employment with the Company through the end of the Retention Period.  Please note that the Retention Bonus payment is not considered compensation for purposes of pension, 401(k), or other retirement plans.  If, prior to February 2, 2019, Executive dies or terminates employment due to disability (pursuant to the Company’s long-term disability plan), Executive or her estate, as applicable, shall receive such Retention Bonus as soon as reasonably practicable, and in any event within 30 days, following her termination of employment.    

		
	b.
	Executive shall be deemed to have remained employed through the end of the Retention Period for purposes of Section 2(a), 3, and 4 of this Retention Agreement and for purposes of all Macy’s equity awards held by Executive if, prior to February 2, 2019, (a) Executive’s employment is involuntarily terminated without “cause” (as such term is defined in the Macy’s, Inc. Executive Severance Plan (the “ESP”)), or (b) Executive resigns following a material breach of this Retention Agreement by Macy’s (after written notice delivered by Executive to Macy’s reasonably identifying the alleged breach and failure by Macy’s to cure such breach within 30 days thereafter).  If Executive terminates employment with the Company prior to February 2, 2019 for any other reason, the Retention Bonus shall be forfeited (except as otherwise provided above with respect to a termination due to death or disability), Executive shall not be entitled to receive the other payments and benefits set forth in this Retention Agreement, and Executive’s compensation entitlements, if any, shall be governed by the applicable compensation and benefit plans and agreements.

		
	c.
	These retention provisions do not imply or create a contract of employment for any specific period and only relate to the terms and conditions under which the Retention Bonus and the other payments set forth in this Retention Agreement shall be paid. It is intended that the Retention Bonus be in full compliance with Section 409A of the Internal Revenue Code of 1986, as amended, or an applicable exemption therefrom, and this Retention Agreement will be interpreted and administered in accordance with such intention.

		
	3.
	Annual Bonus.  If Executive remains in employment with the Company through the end of the Retention Period, Macy’s shall pay  Executive  her  full year annual bonus for its fiscal year 2018 when bonuses are paid to other similarly situated senior executive officers of Macy’s, subject to, and based on the level of, achievement of all applicable performance conditions in respect thereof.  

		
	4.
	Treatment of Equity Awards.  

		
	a.
	2018 Equity Award.  Executive will be entitled to receive a fiscal year 2018 equity award in the form of Macy’s restricted stock units with a grant date value of $1,500,000 on the date that fiscal year 2018 equity awards are granted to other similarly situated senior executive officers of Macy’s, subject to her continued employment with the Company through such grant date.  Such restricted stock units will have the terms and conditions set forth in the form of award agreement made available to Executive prior to the date hereof, subject to any modifications to such terms and conditions  set forth in this Retention Agreement. 

		
	b.
	2017 Performance Restricted Stock Unit Awards.  Executive will receive the shares of Common Stock payable with respect to all Performance Restricted Stock Units (“PRSUs”) granted in two awards in 2017 under the Amended and Restated 2009 Omnibus Incentive Compensation Plan (the “2017 PRSU Awards”), less withholdings for applicable taxes, as set forth below.  In the event that Executive remains employed through the Retention Period, the shares of Common Stock shall vest, without regard to the proration provisions applicable to retirement under the award agreements governing the 2017 PRSU Awards, based on the actual level of achievement of the applicable performance goals over the full performance period (except as otherwise provided by the terms of the award agreements in the event of a Change in Control) and be paid to Executive on the date that shares of Common Stock are paid to actively employed holders of PRSUs granted in 2017.  For purposes of the preceding sentence, it is hereby acknowledged and agreed that, if Executive remains employed through the Retention Period, (i) Executive shall be deemed to have remained employed with the Company through the February 2020 vesting date (or such later vesting date as is required in order to avoid proration of the 2017 PRSU Awards for premature termination), (ii) there are no additional individual goals and/or targets required to be achieved by Executive in order to vest in the 2017 PRSU Awards other than those set forth in the applicable award agreements, (iii) Executive shall be treated no less favorably than other similarly situated senior executive officers of the Company (notwithstanding that Executive  may no longer be an employee as of the end of the performance period), and this treatment shall also be provided for Executive’s PRSU award granted in 2016, and (iv) the Compensation and Management Development Committee of the Macy’s, Inc. Board of Directors shall certify performance results relating to the 2017 PRSU Awards within the time period required by the applicable award agreements, which certification is expected to occur at its February 2020 meeting.

		
	c.
	Treatment of Equity Awards.  All Macy’s equity awards held by Executive will continue to be treated in accordance with their terms, except as otherwise provided in Section 2(b) and Section 4(b) of this Retention Agreement.

		
	5.
	Consultation with Legal Counsel

The Company advises Executive to consult with an attorney prior to executing this Retention Agreement.  Executive acknowledges that Executive has been advised by the Company, in writing, to consult with legal counsel of Executive’s choosing and that Executive has had the opportunity to consult counsel, if Executive chose to do so. The Company shall pay or reimburse Executive for her reasonable legal fees and expenses incurred in negotiating and drafting this Retention Agreement and Exhibit A in an amount not to exceed $10,000, provided that such payment or reimbursement shall be conditioned upon Executive providing a written invoice from her counsel evidencing such fees and expenses incurred within 30 days of the date hereof. 

		
	6.
	Conditions

In consideration for the Retention Bonus payment, the retirement vesting enhancement regarding the 2017 PRSU Awards, and the other payments set forth in this Retention Agreement, Executive agrees (a) to execute a standard General Release of Claims upon conclusion of the Retention Period in the form attached hereto as Exhibit A, and (b) effective as of the date hereof, she is no longer eligible to participate in the ESP or any other severance plan of Macy’s and, notwithstanding anything in the ESP or otherwise to the contrary, Executive shall not receive severance benefits under the ESP or otherwise upon any termination of employment with the Company on or after the date hereof.  All payments under this Retention Agreement are expressly conditioned on Executive’s execution and non-revocation of such General Release of Claims and agreement to the condition set forth in clause (b) above.   

		
	7.
	Communications

Any press release or current report on Form 8-K regarding Executive’s retirement or employment termination shall be subject to Executive’s prior review and comment and Executive’s comments shall be considered by Macy’s in good faith.  Executive shall also be permitted to review and comment upon the sections of the Compensation Discussion and Analysis section of the applicable annual proxy statement of Macy’s that relate to Executive’s termination of employment before such proxy statement is filed with the Securities and Exchange Commission.   

8.    Entire Agreement 

This Retention Agreement contains the entire agreement between the parties hereto and supersedes all previous agreements between the parties, whether written or oral, respecting the subject matter hereof.  No representations, inducements, promises, or agreements, oral or otherwise, between the parties or their agents not embodied herein will be of any force or effect.

9.    Severability

If any term, provision, covenant, or condition of this Retention Agreement, or the application thereof to any person, place or circumstance, shall be held by a court of competent jurisdiction to be invalid, unenforceable or void, the remainder of this agreement and such term, provision, covenant, or condition as applied to other persons, places or circumstances shall remain in full force and effect.

10.    Modification

This Retention Agreement can be modified only by a written agreement signed by both parties.  

11.    Governing Law 

This Retention Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Ohio as applied to agreements entirely entered into and to be performed in Ohio.

[Signature Page Follows.]

Macy’s, Inc.

By:     /s/ Danielle Kirgan                
Its: ___Chief Human Resources Officer______________                              

I accept the terms of this Retention Agreement:

/s/ Karen Hoguet                
Karen Hoguet                    

Exhibit A

Karen Hoguet
[Home Address]
[City, State]  [Zip Code]

Dear Karen:

This letter agreement and general release (“Agreement”) sets forth the agreement between you and the Macy’s, Inc. entity for which you perform services, hereinafter referred to as the “Company.”  In consideration of the mutual promises stated below, you and the Company agree as follows:  

		
	1)
	Employment Termination Date.  You and the Company agree that your final day of work will be __________, __, 201_ (the “Employment Termination Date”).

		
	2)
	Consideration.  You acknowledge that the consideration provided in the Retention Agreement between you and Macy’s, Inc. dated April 3, 2018 (the “Retention Agreement”) is in addition to anything you would otherwise be entitled to receive and that the consideration and promises contained herein are not to be construed as an admission of any wrongdoing or liability by the Company and/or any of the other Released Parties.  

		
	3)
	Release of Claims.  Subject to the provisions of the “Rights Not Waived” paragraph, you hereby release and discharge forever the Company, its parent corporations, predecessors, successors, assigns, divisions, subsidiaries, facilities, related or affiliated entities, and all of their respective current and former officers, directors, employees, shareholders, insurers, agents, and counsel, including, without limitation, any and all current and former management and supervisory employees (hereinafter, with the Company, collectively referred to as the “Released Parties”) of and from all actions, causes of action, claims, complaints, demands, proceedings, lawsuits, costs, and expenses for damages, known or unknown, which you had or now have or may have against the Released Parties arising from any event, fact, or circumstance occurring or existing on or prior to the date that you execute this Agreement relating to your employment with, or termination of employment from, the Company.  This release includes, but is not limited to: (a) any claim of age discrimination under the Age Discrimination in Employment Act, as amended, or under any other state or local statute, ordinance, order, or law, all as amended; (b) any claim of discrimination on any other basis, including, without limitation, age, appearance, color, disability, gender identification, marital status, military status, national origin, political affiliation, race, religion, sex, sexual orientation, transgender status, veteran status, or any other characteristic (including, but not limited to, status as a “whistleblower” except under a federal statute), under any federal, state, or local statute, ordinance, order, or law, including, but not limited to, the Civil Rights Act of 1866, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act, the Older Worker’s Benefit Protection Act of 1990, the Lilly Ledbetter Fair Pay Act of 2009, the Family and Medical Leave Act, the Equal Pay Act, the Pregnancy Discrimination Act of 1978, and the laws in the state in which you worked for the Company, including, but not limited to, the Massachusetts Equal Rights Act (M.G.L. ch. 93), the Massachusetts Payment of Wages Law (M.G.L. ch. 149), the Massachusetts Equal Pay Act (M.G.L. ch. 149), the Massachusetts Maternity Leave Law (M.G.L. ch. 149), the Massachusetts Small Necessities Leave Act (M.G.L. ch. 149), the Massachusetts Fair Employment Practices Law (M.G.L. ch. 151B), the Massachusetts Privacy Statute (M.G.L. ch. 214), the Massachusetts Civil Rights Act (M.G.L. ch. 12), and the New Jersey Conscientious Employee Protection Act, all as amended; (c) any other claim relating to your employment, the termination of your employment, or the Released Parties’ failure to reemploy you, under any federal, state, or local statute, ordinance, order, or law, all as amended; (d) any claim under any contract, tort, or any other federal, state, or local statutory or common law, including, but not limited to, any claim that the Released Parties, jointly or severally, breached any contract or promise, express or implied, or any term or condition of your employment, and any claim for promissory estoppel or wrongful discharge arising out of your employment with the Company or any of the Released Parties and/or the termination of such employment; (e) any claim arising under the Company’s internal dispute resolution program, Solutions InSTORE; and (f) any claim for severance benefits under the Macy’s, Inc. Executive Severance Plan, a copy of which is available to you upon request.  Except as provided in the “Rights Not Waived” paragraph, this release is intended to cover all possible legal and/or equitable relief, including, but not limited to, reinstatement, wages, back pay, front pay, benefits, perquisites, compensatory damages, punitive damages, liquidated damages, damages for pain or suffering, damages for emotional distress, damages for loss of consortium, and attorneys’ fees and costs.  You further agree not to file any action, cause of action, claim, complaint, demand, proceeding, or lawsuit against the Released Parties.  This release of claims does not include any rights you may have under a federal whistleblower statute.  

		
	4)
	Rights Not Waived.  It is specifically understood and agreed that this Agreement has no effect on your rights with regard to claims that cannot be waived by law; however, you acknowledge and agree that you waive any right to monetary recovery for any claims you may make with any federal, state, or local administrative agency or commission or should any federal, state, or local administrative agency or commission pursue any claims on your behalf arising out of or related to your employment with and/or separation from the Company.  This release does not waive or release any rights or claims that you may have based on events occurring after the date that you execute this Agreement.  Nor does this release have any effect on your rights, if any: (a) accrued and vested on or prior to the Employment Termination Date under the Company’s ERISA benefit plans or any other deferred compensation arrangements; (b) brought pursuant to the terms of an ERISA plan; (c) arising under the provisions of Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), as amended, to continue coverage after the Employment Termination Date under the Company’s health plans; (d) with regard to a Workers’ Compensation claim; (e) with regard to any rights you may have under a federal whistleblower statute; (f) to continue participation in all other applicable Company benefit plans (except as otherwise expressly provided in the Retention Agreement) until the Employment Termination Date, subject to the terms of such plans as they may exist from time to time;  (g) under the Retention Agreement; (h) as a shareholder of the Company; (i) pursuant to any outstanding equity awards of the Company; or (j) with respect to any applicable indemnification agreements or policies or directors’ and officers’ or other third party  liability insurance coverage.  It is further specifically understood and agreed that your participation in the Company’s disability, life insurance, accidental death and dismemberment, and/or other related plans will cease in accordance with the terms of the respective plan, and that you have been informed that the Company’s Long Term Disability plan requires as a condition of participation that the employee be “actively at work” and that you will not, therefore, be eligible to continue to participate in such plan after the Employment Termination Date, except as a result of your exercising any conversion rights as contained in the plan. 

		
	5)
	Noncompetition, Nonsolicitation and Confidential Information.  You acknowledge, agree and reaffirm that the obligations set forth under the Noncompetition, Nonsolicitation and Confidentiality Agreement you executed on January 6, 2010 (copy attached) remain in full force and effect. 

		
	6)
	Non-Disparagement; Non-Communication.  You agree that (a) you will not take any action nor make any disparaging remarks about, or in any other way seek by word or act to harm or impair the reputation or goodwill of, or lead to unfavorable publicity about, the Company, its parent corporations, predecessors, successors, assigns, divisions, subsidiaries, facilities, related or affiliated entities, and the current and former officers, directors, and employees of any of them, provided that the prohibition in this paragraph does not apply to communications with administrative or other governmental authorities or in response to valid compulsory legal process or in connection with truthful testimony given in good faith in any litigation; and (b) you and anyone on your behalf will not communicate, either orally or in writing, with any print, broadcast, or electronic media about any matter arising out of your employment with the Company and/or your departure from the Company without first obtaining the written consent of the Company; provided that you may make factual biographical statements about your employment with the Company, after providing reasonable prior notice to the Company with respect to any such statement to be made before the second anniversary of the Employment Termination Date, without obtaining the written consent of the Company.    Nothing contained in this paragraph precludes or limits the Company from also seeking equitable relief for any breach of this paragraph.

 
		
	7)
	Non-Disparagement by the Company.  The Company’s senior executives will not take any action nor make any disparaging remarks about, or in any other way seek by word or act to harm or impair the reputation or goodwill of, or lead to unfavorable publicity about you, provided that the prohibition in this paragraph does not apply to communications with administrative or other governmental authorities or in response to valid compulsory legal process or in connection with truthful testimony given in good faith in any litigation.

		
	8)
	Cooperation in Legal Matters.  You agree that, upon the reasonable request of the Company, you will cooperate in any threatened, pending or future litigation or governmental inquiry that involves any interests of the Company to which you (or your employer) are not a party adverse to the Company (or which is not against your own legal interests) and for which you have knowledge or information.  Upon the request and at the expense of the Company (including reasonable costs for independent counsel if you believe your engagement of such counsel to be appropriate), and upon reasonable notice, you will testify truthfully in such proceedings, in any jurisdiction, whether or not such testimony can otherwise be compelled.  The Company will attempt to schedule such cooperation in a manner that does not interfere with your professional or personal obligations, but cannot guarantee such scheduling.  

		
	9)
	Covenant Not to Pursue Released Claims.  You covenant and affirm that you have not and will not institute legal proceedings, or file, initiate, or cause to be filed, any action, cause of action, claim, complaint, demand, proceeding, or lawsuit based upon, arising out of, or relating to any of the released claims, nor will you participate, assist, or cooperate in any action, cause of action, claim, complaint, demand, proceeding, or lawsuit regarding the Released Parties, whether before a court, or otherwise, unless required to do so by law.  This paragraph does not include any rights you may have under a federal whistleblower statute.   

		
	10)
	Severability.  If any provision of this Agreement is held to be invalid, void, or unenforceable, in whole or in part, the remaining provisions of this Agreement will not be affected and will continue in full force and effect.

		
	11)
	Governing Law.  This Agreement shall be governed by the laws of Ohio without regard to its conflict of laws principles.  

		
	12)
	Return of Company Property and Information.  You agree that the payments and benefits provided under the Retention Agreement are contingent upon you signing and not revoking this Agreement and returning all Company property and confidential and/or proprietary information in your possession or control, including, but not limited to, identification badges, keys, computers, cellular telephones, other electronic devices, and credit cards; provided, that, any immaterial failure to return property shall not constitute a basis for the Company to refuse to make payments under the Retention Agreement.  Notwithstanding the foregoing, you may retain your Company-provided iPad and iPhone and the Company will take such action as may be reasonably necessary to cause the applicable mobile carriers to transfer any relevant mobile numbers to you.  The Company shall have the right to have its IT department delete any proprietary or confidential information from such devices before transferring them to you.   You may also make and retain an electronic copy of your contacts list and calendar, any emails needed to file your personal income tax returns and any personal emails.  

		
	13)
	Consideration Period.  You acknowledge that you have been informed that you have up to twenty-one (21) days within which to consider this Agreement prior to your execution of it.

		
	14)
	Attorney Consultation; Revocation Period.  You are hereby advised:

		
	a.
	to consult an attorney prior to executing this Agreement; and

		
	b.
	that for a period of seven (7) days after the date on which you execute this Agreement, you may revoke this Agreement; this Agreement is not effective or enforceable until such seven (7) day period has expired; if you exercise your right to revoke this Agreement within seven (7) days after signing this Agreement, all provisions contained in this Agreement will be null and void and the contents of this Agreement may not be used by either party for any purpose; and should you decide to revoke this Agreement, such revocation must be in writing and directed to the undersigned by personal delivery or by first class mail, postage prepaid, or certified mail within the same seven (7) day period (if mailed, the date of the postmark or certification will be used to determine the date of revocation). 

		
	15)
	Knowing and Voluntary Agreement.  You acknowledge that you have read this Agreement; you have been given an opportunity to review this Agreement with legal counsel of your own choosing, at your own expense; you have apprised yourself of sufficient relevant information, through sources of your own selection, in order that you might intelligently exercise your own judgment in deciding whether to execute this Agreement; this Agreement fully and accurately reflects the content of any and all understandings and agreements between the parties; you have freely executed this Agreement on the basis of your own judgment, belief, and knowledge, and not on the basis of any representation by the Company, its attorneys, or anyone acting on its behalf; and you are not relying on any promise or representation whatsoever not contained herein as an inducement to execute this Agreement.

[Signature Page Follows.]

You and the Company have read the foregoing letter agreement and indicate knowing and voluntary agreement to its terms.

                                                    
		
	Date
	[Authorized Company Representative’s Name] 

[Title]
                        

    
                                                    
Date                    Karen Hoguet

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