Document:

Exhibit 10.8

		

			Exhibit 10.8

		

		

			 

		

		
			NOTIFICATION OF NON-STATUTORY STOCK OPTION AWARD
		

		
			UNDER THE FLEXSTEEL INDUSTRIES, INC. OMNIBUS STOCK PLAN
		

			
					
						Name of Optionee:     

				
	
					
						Effective Date:    

				
	
					
						Number of Shares Covered:    

					
					
						Date of Grant:    

				
	
					
						Exercise Price Per Share:    

					
					
						Expiration Date:    

				

		
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			Flexsteel Industries, Inc. (the “Company”) hereby grants you an option (the “Option”) under this Notification of Non-Statutory Stock Option Award (this “Notification of Award”), under the Flexsteel Industries Inc. Omnibus Stock Plan (the “Plan”) provided upon request. The Options granted under this Notification of Award are subject to the following terms and conditions:
		

		
			1.  Stock Option.  The Option is not intended to be an Incentive Stock Option within the meaning of Section 422 of the Internal Revenue Code (the “Code”).
		

		
			2.  Purchase Price.  The purchase price of the Stock is the Exercise Price Per Share, which shall not be less than the Fair Market Value of the Stock on the Date of Grant.
		

		
			3.  Expiration Date. Unless the right to exercise the Option is terminated earlier under Section 7, the Option will expire on the Expiration Date.  The Expiration Date shall not be more than ten years from the Date of Grant.  You are solely responsible for exercising this Option, if at all, prior to its Expiration Date. The Company has no obligation to notify you of this Option’s expiration. 
		

		
			4.  Vesting. The Shares under the Option shall vest pursuant to the following vesting schedule: 
		

			
					
						Shares

					
					
						Date

				
	
					
						  

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				

		
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			In the event of an Involuntary Termination, other than for Cause, 30 days before or 12 months following a Change of Control (see Attachment A, “Definitions”) of the Company, then the vesting schedule set forth above shall be automatically accelerated so that all Shares purchased or purchasable upon exercise of this Option shall become fully vested, effective as of the effective time of the Change in Control. 
		

		
			5.  Exercise Period.  The Option may only be exercised prior to the Expiration Date.  Your right to exercise some or all of the Option may be terminated before the Expiration Date as provided in Section 7, relating to termination of your employment.  In all cases, you may only exercise the Option to the extent the Option has vested as stated in the Notification of Award. 
		

		
			6.  Transferability.  The Option may be exercised during your lifetime only by you and any exercise must be prior to the Expiration Date.  You may not transfer the Option, other than by will or the laws of descent and distribution.
		

		

		

		 

 

		

			 

		

		7.  Termination of Employment.   All of your rights in this Option, to the extent not previously vested and exercised, shall terminate upon your termination of employment except as described in this Section 7. With respect to the vested and exercisable portion of the Option, and subject to    subsection (f): 
		

		
			(a)  In the event of your termination of employment due to reasons other than death, Disability, Termination for Cause (see Attachment A, “Definitions”) or termination on or after you reach the age of 62, the Option may be exercised (to the extent exercisable at the date of termination) by you within three months after the date of termination of employment.
		

		
			(b)  In the event of your termination of employment on or after you reach the age of 62, the Option may be exercised (to the extent exercisable at the date of termination) by you within three years after the date of termination of employment.       
		

		
			(c)   In the event of your termination of employment due to Disability, the Option may be exercised in full by you within one year after the date of termination of employment.
		

		
			(d)  In the event of your termination of employment due to death, the Option may be exercised in full by your estate or by a person who acquires the right to such Option by bequest or inheritance or otherwise by reason of your death, within one year after the date of termination of employment.
		

		
			(e)  In the event of your Termination for Cause, the Option and your right to exercise the Option shall terminate immediately.
		

		
			(f)  Notwithstanding anything in this Notification of Award, in no event may the Option be exercised after the Expiration Date.
		

		
			8.  Method of Exercise; Use of Company Stock.  
		

		
			(a)  The Option may be exercised by delivering written notice of exercise to the Company at the principal executive office of the Company, to the attention of the Company’s Secretary.  The notice must state the number of Shares to be purchased, and must be signed by the person exercising the Option.  If you are not the person exercising the Option, the person also must submit appropriate proof of his/her right to exercise the Option.  The Company may designate a third party to administer the option program in which case the third party may receive any required notice.
		

		
			(b)  Upon giving notice of any exercise hereunder, you must provide for payment of the purchase price of the Shares being purchased through one or a combination of the following methods:
		

		
			  (i)    Purchase.  By paying cash (including check paid to the Company, wire transfer, bank draft, or money order);
		

		
			(ii)  Delivery of Shares.  By delivery or tender to the Company of unencumbered Shares (by actual delivery or attestation) having an aggregate Fair Market Value on the date the Option is exercised equal to the purchase price of the Shares being purchased under the Option, or a combination thereof, as determined by the Committee (provided, however, that no fractional Shares will be issued or accepted);  
		

		

		

		 

		

			 

		

			

					

						 

					

					

						 

					

					

						 

				
	

					

						Notification of Non-Statutory Stock Option Award

					

					

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		(iii)  Broker-Assisted Cashless Exercise.  By directing a stockbroker designated by the Company to affect a broker assisted cashless exercise to sell Shares issued on exercise of the Option and remitting the proceeds of such sale to the Company; or
		

		
			(iv)    Net Exercise.  By instructing the Company to withhold Shares having an aggregate Fair Market Value on the date of exercise less than or equal to the purchase price of the Shares acquired upon exercise; provided that this method of exercise may only be used to deliver net shares to you and no cash compensation may be provided.
		

		
			In no event will you be permitted to pay any portion of the purchase price with Shares, through a broker-assisted cashless exercise or through net exercise, if the Committee, in its sole discretion, determines that payment in such manner could have adverse tax or financial accounting consequences for the Company.  
		

		
			9.  Withholding.  In any case where withholding is required or advisable under federal, state or local law in connection with any exercise by you under this Notification of Award, the Company is authorized to withhold appropriate amounts from amounts payable to you or may require that you remit to the Company an amount equal to such appropriate amounts.  Upon the exercise of the Option, you may elect, subject to the approval of the Committee and compliance with applicable laws and regulations, to satisfy any withholding requirements, in whole or in part, by having the Company withhold Stock having a Fair Market Value, on the date the tax is to be determined, equal to the standard required withholding rates for non-periodic payments.  In no event will the Company be required to permit the exercise of the Option unless the applicable withholding requirements are satisfied.
		

		
			10.  Changes in Capitalization, Dissolution, Liquidation, Reorganization, Acquisition.  The terms stated in the Notification of Award are subject to modification upon the occurrence of certain events as described in Section 16 of the Plan.
		

		
			11.  Severability.  In the event any provision of this Notification of Award is held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of this Notification of Award, and the Notification of Award will be interpreted and enforced as if the illegal or invalid provision had not been included.
		

		
			12.  No Guarantee of Employment.  The Notification of Award will in no way restrict the right of the Company to terminate your employment at any time.
		

		
			13.  Tax Advice.    You acknowledge that you have not looked to or relied upon the Company or any of its officers, directors, optionees, shareholders, accountants or legal counsel for tax advice concerning the tax consequences of the grant to, and your exercise of, the Option and that you have obtained such advice, to the extent you determine that it is necessary, from other sources located by you.
		

		
			14.  No Shareholder Rights.    You will have no rights as a shareholder with respect to any Stock subject to the Option prior to the date of exercise of the Option and, after such date, will only have rights as a shareholder with respect to the Stock acquired upon exercise.
		

		
			15.  Governing Terms.  This Notification of Award is made according to the provisions of the Plan.  The terms of the Plan are incorporated by reference in this Notification of Award.  Terms used in this Notification of 
		

		 

		

			 

		

			

					

						 

					

					

						 

					

					

						 

				
	

					

						Notification of Non-Statutory Stock Option Award

					

					

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		Award have the meanings used in the Plan unless the context clearly requires otherwise.  The terms “termination of employment,” “terminate employment,” and similar terms shall mean “Separation from Service” as defined in the Plan.  In the event of a conflict between the provisions of the Plan and the provisions of this Notification of Award, the provisions of the Plan will govern.
		

		
			16.  Resale Restrictions.  The resale of Stock acquired upon exercise of awards granted under the Plan is generally not restricted by the terms of the Plan. Resales by participants who are officers or directors of the Company must comply with (i) Rule 144 under the Securities Act of 1933, as amended, and (ii) the six-month short swing profit restrictions under Section 16(b) of the Securities Exchange Act of 1934, as amended.
		

		
			17.  Entire Understanding.  This Notification of Award constitutes the entire understanding of you and the Company with respect to the subject matter of this Notification of Award, and, except as otherwise provided in the Plan, may not be amended, changed, modified, terminated, or waived other than by written instrument signed by you and the Company.  This Notification of Award supersedes all prior oral or written agreements and understandings between you and the Company concerning the subject matter of the Notification of Award, including any implied or express representations regarding your ownership of any interest in the Company or its property, and any prior oral or written agreements conveying stock option rights to you.
		

		
			18.  Limitation on Rights; No Right to Future Grants; Extraordinary Item of Compensation.    By accepting the Option, you acknowledge that:  (a) the Plan is discretionary in nature and may be suspended or terminated by the Company at any time; (b) the grant of the Option is a one-time benefit that does not create any contractual or other right to receive future grants of options, or benefits in lieu of options; (c) all determinations with respect to any such future grants, including but not limited to, the times when options will be granted, the number of shares of Stock subject to each option, the Exercise Price Per Share, and the time or times when each option will be exercisable, will be at the sole discretion of the Company; (d) your participation in the Plan is voluntary; (e) the value of the Option is an extraordinary item of compensation that is outside the scope of your employment agreement, if any, with the Company; (f) the Option is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payment, bonus, long-service award, pension or retirement benefit or similar payment; (g) the exercisability of the Option ceases upon termination of employment with the Company for any reason except as may otherwise be explicitly provided in the Plan or this Notification of Award or otherwise permitted by the Committee; (h) the future value of the Stock subject to the Option is unknown and cannot be predicted with certainty; and (i) if the Stock subject to the Option does not increase in value, the Option will have no value.
		

		
			19.  Forfeiture and Repayment. If you receive or become entitled to receive a payment under this Notification of Award within six months before your Separation from Service with the Company, the Company, in its sole discretion, may require you to forfeit or return the Award, as the case may be, in the event you:  (a) engage in Competitive Activity at any time during your employment or within a two-year period after your Separation from Service or (b) engage in Improper Use of Confidential Information at any time.  (See Attachment A, “Definitions.”)  The Company also reserves the right to require you to pay back to the Company any amount received under the Award as described in Section 18 of the Plan.  Further, in no event will you be entitled to an Award under this Notification of Award if you have a Termination for Cause at any time before the payment 
		

		 

		

			 

		

			

					

						 

					

					

						 

					

					

						 

				
	

					

						Notification of Non-Statutory Stock Option Award

					

					

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		date of the Award.  Any repayment due under this Section 17 or Section 18 of the Plan will be made by you either in the Shares, or in a dollar amount equal to the Fair Market Value of the Shares determined on the date of repayment, you received under the Award.  The Committee, in its discretion, will determine which method of payment is acceptable.  Further, in no event will you be entitled to an Award under this Notification of Award if you have a Termination for Cause at any time prior to the payment date.  
		

		
			20.  Beneficiary Designation.  If your employment is terminated as a result of your death, someone other than you may become entitled to exercise this Option, as provided in Section 7 of this Notification of Award.  The Plan permits you to designate a beneficiary to exercise the vested portion of this Option in the event of your death.  Any beneficiary can be named and you may change your beneficiaries at any time by submitting such designation, in writing, to the Company. (See Attachment B, “Beneficiary Designation of Employee”)
		

		
			[Signature Page to Follow]
		

		
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						Notification of Non-Statutory Stock Option Award

					

					

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		NOTIFICATION OF NON-STATUTORY STOCK OPTION AWARD
		

		
			UNDER THE FLEXSTEEL INDUSTRIES, INC. OMNIBUS STOCK PLAN
		

		
			ACKNOWLEDGMENT
		

			
					
						Name of Optionee:     

				
	
					
						Effective Date:     

					
					
						Vesting Schedule:       

				
	
					
						Number of Shares Covered:    

					
					
						Date of Grant:    

				
	
					
						Exercise Price Per Share:    

					
					
						Expiration Date:    

				

		
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			FLEXSTEEL INDUSTRIES, INC.:
		

			
					
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						By:  Jerald K. Dittmer  

				
	
					
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						Its:  President & CEO

				

		
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			Acknowledgement:  Your receipt of this Notification of Award constitutes your agreement to be bound by the terms and conditions of this Notification of Award and the Plan.
		

		
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			OPTIONEE:
		

			
					
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						{name}

				

		
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						NSO Acknowledgment

					

					

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		ATTACHMENT A
		

		
			Definitions
		

		
			The Capitalized terms used in this Notification of Award have the meanings set forth below.
		

		
			“Change in Control” means any of the following but only if such event meets the definition of “change in control” for purposes of Section 409A of the Code):
		

		
			(i)  Any individual, entity or group becomes a “Beneficial Owner” (as defined in Rule 13d-3 of the Securities Exchange Act of 1934, as amended), directly or indirectly, of at least thirty percent (30%) but less than fifty percent (50%) of the voting stock of the Company in a transaction that is not previously approved by the Board of Directors of the Company;
		

		
			(ii)  Any individual, entity or group becomes a Beneficial Owner, directly or indirectly, of at least fifty percent (50%) of the voting stock of the Company;
		

		
			(iii)  The person who were directors of the Company immediately prior to any contested election or series of contested elections, tender offer, exchange offer, merger, consolidation, other business combination, or any combination of the foregoing cease to constitute a majority of the members of the Board of Directors immediately following such occurrence;
		

		
			(iv)  Any merger, consolidation, reorganization or other business combination where the individuals or entities who constituted the Company’s shareholders immediately prior to the combination will not immediately after the combination own at least fifty percent (50%) of the voting securities of the business resulting from the combination; 
		

		
			(v)  The sale, lease, exchange, or other transfer of all or substantially all the assets of the Company to any individual, entity or group not affiliated with the Company;
		

		
			(vi)  The liquidation or dissolution of the Company; or
		

		
			(vii)  The occurrence of any other event by which the Company no longer operates as an independent public company. 
		

		
			“Competitive Activity” means any of the following regardless of whether it is undertaken, directly or indirectly, on your own behalf or on behalf of any person or entity other than the Company, including without limitation as a proprietor, principal, agent, partner, officer, director, stockholder, employee, member of any association, contractor, consultant or otherwise:
		

		
			(i)  Engaging in any business activity, in any geographic market in which the Company is then engaged in business that is competitive with the business of the Company; or
		

		
			(ii)  Hiring or soliciting for employment any person who is then an employee of the Company; or  
		

		
			(iii)  Inducing or attempting to induce any person to end his or her employment relationship with the Company; or  
		

		
			
		

		 

		

			 

		

			

					

						Definitions

					

					

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		(iv)  Soliciting business concerning any business (as described in Section (i) above) from any person or entity who is, or who was, a client, customer, prospective client or prospective customer of the Company; or 
		

		
			(v)  Taking any action to divert business from, or inducing or attempting to induce any customer or prospective customer or any vendor, supplier or other business relation to cease doing business with the Company.
		

		
			“Improper Use of Confidential Information” means:  
		

		
			(i)  Any use or disclosure of Confidential Information except as required for the performance of your duties as an employee of the Company;
		

		
			(ii)  Any act or omission that directly or indirectly would materially reduce the value of Confidential Information except for such acts or omissions that are required for the performance of your duties as an employee of the Company.   
		

		
			(iii)  Notwithstanding anything in Sections (i) or (ii) above, Improper Use of Confidential Information does not include:
		

		
			(A)  any disclosure, use or other act or omission that is expressly authorized in writing, in advance by the Company; or 
		

		
			(B)  any required disclosure of Confidential Information by law or legal process, if:  (x) you provide prompt notice to the Company in writing, and prior to disclosing any Confidential Information, so that the Company may elect to seek an appropriate protective order to prevent disclosure at the Company’s option and expense; and (y) you cooperate with the Company in any efforts to seek a protective order.
		

		
			For purposes of this definition, “Confidential Information” means any non-public information regarding the Company or any of its owners, directors, representatives, agents, employees, suppliers, vendors, shareholders, members, clients, customers, or other third parties or entities with whom the Company does business and which you have learned or developed in the past as a result of your employment by or association with the Company or which you learn or develop while providing services to the Company.  Confidential Information includes, but is not limited to, trade secrets, information about customers, prospective customers, marketing strategies, business strategies, sales strategies, products, services, key personnel, suppliers, pricing, technology, computer software code, methods, processes, designs, research, development systems, techniques, finances, accounting, purchasing, forecasts, or planning.  All information disclosed to you or to which you obtain access in whatever form, whether originated by you or by others, during the period that you provide services to the Company will be presumed to be Confidential Information if it is treated by the Company as being Confidential Information or if you have a reasonable basis to believe it to be Confidential Information. For these purposes, Confidential Information will not include knowledge or information: (i) that is now or subsequently becomes generally publicly known, other than as a direct or indirect result of Improper Use or Disclosure of Confidential Information by you; or (ii) that is independently made available to you in good faith by a third party who has not violated any legal duty or confidential relationship with the Company.
		

		

		

		 

		

			 

		

 

		

			 

		

		“Involuntary Termination” has the meaning set forth in U.S. Treasury Regulation §1.409A-1(n).  Generally, this means that the Company has terminated your employment under circumstances where you have not initiated or requested the termination and you are willing and able to continue your employment.  An “involuntary termination,” for these purposes, also includes your separation from service due to “good reason” if your separation occurs due to a material diminution in your base compensation; a material diminution of your authority, duties or responsibilities; or a material change in the geographic location at which you must perform services.  In order for a separation from service to be considered a “good reason” separation from service, you must provide a written notice to the Company of the existence of the condition within a 30-day period following the initial existence of the condition, upon which the Company must be provided a period of at least 90 days during which it may remedy the condition.
		

		
			“Termination for Cause” means the involuntary termination of a Participant’s employment with the Company as a result of dishonesty, fraud, misappropriation of funds, theft relating to the Participant’s position, harassment, an act of violence, acts punishable by law, misconduct as described in the Flexsteel Industries, Inc. Employee Handbook, as amended from time to time, or such other serious misconduct as will be determined by the Company to constitute conduct that warrants forfeiture pursuant to the Plan and this Notification of Award.
		

		
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		ATTACHMENT B
		

		
			FLEXSTEEL INDUSTRIES, INC.
		

		
			OMNIBUS STOCK PLAN
		

		
			NON-STATUTORY STOCK OPTION
		

		
			BENEFICIARY DESIGNATION OF EMPLOYEE
		

		
			Under the Flexsteel Industries, Inc. Omnibus Stock Plan, I,      {name}                             , hereby designate the following as beneficiary of any portion of my award which has been earned according to the terms of the Plan and unpaid at the time of my death.
		

		
			A.  Primary Beneficiary:    ____________________________________
		

		
			B.  Contingent Beneficiary:   ____________________________________
		

		
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			Signature: ____________________________________
		

		
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			Name:     {name}_______________________________
		

		
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			Date: ____________________________________
		

		
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			*This election is valid until a later dated designation is completed and filed with the Company.
		

		 

		

			 

		

			

					

						 

					

					

						1Document

Exhibit 10.2
    
270 Brannan Street
San Francisco, CA 94107

Via Electronic Mail

April 29, 2021

Shawn Bice
c/o Splunk Inc.
270 Brannan Street
San Francisco, CA 

Dear Shawn:
I am thrilled and delighted to offer you the position of President, Products and Technology of Splunk Inc. (the “Company”), reporting to me. Your primary work location will be your home office in Seattle, Washington. We are very excited to have you join the team. In your role, you will have the opportunity to make a meaningful impact on our future success. Understandably, this offer is contingent upon you fully cooperating with, and satisfactorily completing, and clearing background, reference and conflicts checks. Here are the terms of our proposed offer (the “Offer”):
1.Annual Salary; Executive Bonus. Your gross base salary will be $600,000 per year, less applicable deductions and withholdings, and paid in accordance with the Company’s standard payroll practices. In addition, you will be eligible to participate in Splunk's Executive Bonus Plan beginning with the Executive Bonus Plan in effect for the Company’s 2022 fiscal year. Your initial annualized target bonus will be 100% of your annual base salary. Your actual bonus amount will be based on actual achievement of Company financial goal(s), as determined by the Compensation Committee of our Board of Directors (“Compensation Committee”) and prorated as of the Effective Date (defined below). Under current practices (which may change in the future), you will be paid a mid-fiscal-year bonus of up to 50% of your annualized target bonus, pro-rated for the time you have worked during the fiscal year. Any mid-fiscal-year bonus will be based on the Company's forecasted annual achievement of the bonus plan’s performance metrics as of the end of the fiscal second quarter. Your actual mid-fiscal-year bonus amount will be included in the calculation of your annual bonus, meaning that your year-end bonus payment will be equal to your calculated annual bonus amount, less any mid-fiscal-year bonus amount already paid for that fiscal year. The year-end bonus payment will be made in the nearest pay period following the final approval date after the completion of the fiscal year and after the Compensation Committee's review and approval of executive bonuses, but in no event later than two and a half months following the end of the Company’s fiscal year. Note that all payments to you will be made after applicable withholdings.

Shawn Bice
April 29, 2021

2.Start Date. Your start date will be June 1, 2021 (the “Effective Date”).
3.Signing Bonus. We are pleased to offer you a cash signing bonus in the amount of $8,500,000, less all applicable deductions and withholdings.  This bonus will be payable approximately 30 days after your start date.  If you voluntarily resign from the Company for any reason within 12 months following your start date, you agree to reimburse the Company for 100% of the cash signing bonus. If you voluntarily resign after the 12 month anniversary of your start date, you agree to reimburse the Company for up to 50% of the cash signing bonus on a prorated basis with the amount to be reimbursed determined by subtracting the number of months completed after the 12 month anniversary of your start date from 12 and divided by 12.  By your signature on this offer letter, if you voluntarily resign before the date that is 24 months from your start date, you authorize the Company to withhold the entire cash signing bonus amount that is repayable to the Company under this paragraph from all amounts otherwise due and payable to you on termination of employment if, and as permitted by applicable law.  If any amount remains unpaid, you agree to promptly repay the Company the remaining unpaid amount, in full. 
4.Benefits.  You will be eligible to participate in the healthcare, 401(k), employee stock purchase and other employee benefit plans established for our employees and executives, subject to the eligibility criteria and other terms and conditions for such plans.  You will be eligible to receive healthcare benefits on your first day of active, full-time employment.  You will be entitled to 15 days of Personal Time-Off (PTO) annually, accrued on a semi-monthly basis in accordance with Company policy.
5.Equity. We will recommend to the Compensation Committee that you be granted a total new hire equity grant with a value of $10,750,000 under the Company’s 2012 Equity Incentive Plan or its successor (the “EIP”) and the applicable award agreement approved for grants thereunder. $4,300,000 of the new hire grant will be granted in Restricted Stock Units (“RSUs”), which will vest over approximately 3 years, with 33.33% of the RSUs vesting on or about March 10, 2022 and 1/12th of the RSUs vesting quarterly thereafter as specified in your RSU agreement, so long as you remain employed by the Company. The remaining portion of the equity grant will be in the form of Performance Stock Units (“PSUs”) with a target value of approximately $6,450,000, which PSUs will vest pursuant to the terms established by the Compensation Committee, including without limitation the relevant performance metrics and measurement period, as well as vesting terms set forth in your PSU agreement.  The PSUs, if earned, will vest over approximately 3 years with 33.33% of the PSUs vesting on or about March 10, 2022 and 1/12th of the PSUs vesting quarterly thereafter as specified in your PSU agreement, so long as you remain employed by the Company. Each dollar amount discussed in this section will be converted into a number of shares by dividing the dollar amount by the average closing stock price for the 60 trading days ending the day before the grant date, rounded down to the nearest whole unit. 
-2-

Shawn Bice
April 29, 2021

6.Confidentiality.  You agree not to disclose the existence of this Offer, its proposed terms or your joining the Company to any third party prior to the public announcement of such by the Company, with the exception of disclosure to your legal and financial advisors and current manager or employer, provided that each has agreed to maintain confidentiality.  As an employee of the Company, you will have access to confidential information of the Company and certain third parties and you may, during the course of your employment, create inventions, improvements, designs, original works of authorship, computer software programs, trade secrets and other matters that will be the sole and exclusive property of the Company. You hereby irrevocably assign each such invention, work and matter to the Company. As a condition of employment, you are required to comply with the terms of the Company’s “Employee Invention Assignment and Confidentiality Agreement,” which is attached to this Offer. We wish to impress upon you that the Company does not want you to, and we hereby direct you not to, bring with you or use on behalf of the Company, any confidential or proprietary material or information of any former employer or other third party. In addition, you must not violate any other obligation you may have to any former employer or other third party. During the period that you render services to the Company, you agree that you will not engage in any employment, business or activity that is in any way competitive with the business or proposed business of the Company. You will disclose to the Company, in writing, any other employment, business or activity that you are currently associated with or participate in that competes with the Company and that you become associated with during the period that you render services to the Company. You will not assist any other person or organization in competing with the Company or in preparing to engage in competition with the business or proposed business of the Company. By signing this Offer, you certify that your employment with the Company will not violate any contractual or other legal obligation that would prohibit or limit you from performing your duties to the Company. 
7.At-Will Employment.  During your entire employment you will be an at-will employee of the Company, which means the employment relationship can be terminated by either of us for any lawful reason or no reason, at any time, with or without prior notice and with or without Cause.  Your participation in any equity or benefit program does not assure you of continuing employment for any particular period of time.  Any modification or change in your at-will employment status may only occur by way of a written agreement signed by you and the Chief Executive Officer of the Company.
8.Severance.  We will recommend to the Compensation Committee that you receive the following severance benefits.
(a)Separation in Event of Termination Within the 3-Month Period Before or 18-Month Period Following a Change in Control.  In the event of your involuntary separation from employment with the Company without Cause or for Good Reason, in each case within the period that begins after the signing of a definitive agreement that ultimately results in a Change in Control (defined below) within three 
-3-

Shawn Bice
April 29, 2021

(3) months of its signing or within eighteen (18) months following a Change in Control (“Change in Control Period”), then, in addition to any accrued compensation, and provided that you deliver to the Company a signed release of claims in favor of the Company (“Release”), and satisfy all conditions to make the Release effective within sixty (60) days following your separation from service, you shall be entitled to the benefits as set forth below:
(i)Lump sum payment equal to twelve (12) months of your then-current base salary, plus 100% of your annual target bonus as in effect in the fiscal year of termination;
(ii)Provided you timely elect to continue health coverage under COBRA, payment or reimbursement, as applicable, for any monthly COBRA premium payments made by you in the twelve (12) months following your separation from service.  If at the time you separate from service, it would result in a Company excise tax to reimburse you for COBRA premiums, then no such premiums will be reimbursed and if doing so would not cause imposition of an excise tax, you will be paid a single lump sum of $24,000; and
(iii)Acceleration of vesting as to all then-unvested shares or rights subject to all equity awards which have been granted to you.  You shall have six (6) months following your separation from service from the Company in which to exercise any stock options that have been granted to you.
(b)Severance in Event of Termination Without Cause Outside the Change in Control Period.  In the event of your involuntary separation from employment with the Company without Cause not during the Change in Control Period, then, in addition to any accrued compensation, and provided that you deliver to the Company a signed Release and satisfy all conditions to make the Release effective within sixty (60) days following your separation from service, you shall be entitled to benefits as set forth below:
(i)Lump sum payment equal to six (6) months of your then-current base salary, plus a pro-rated portion of your annual target bonus for the time you are actively employed in the fiscal year of termination;
(ii)Provided you timely elect to continue health coverage under COBRA, payment or reimbursement, as applicable, for any monthly COBRA premium payments made by you in the six (6) months following your separation from service.  If at the time you separate from service, it would result in a Company excise tax to reimburse you for COBRA premiums then no such premiums will be reimbursed and if doing so would not cause imposition of an excise tax, you will be paid a single lump sum of $12,000; and
(iii)Acceleration of vesting as to the number of shares or rights subject to all equity awards which have been granted to you as would have vested in the six (6) months following your separation from service.  You shall have six (6) 
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months following your separation from service from the Company in which to exercise any vested options that have been granted to you.
9.Section 409A Matters.
(a)For purposes of this Offer, no payment will be made to you upon termination of your employment unless such termination constitutes a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and Section 1.409A-l(h) of the regulations promulgated thereunder.
(b)To the extent any payments to which you become entitled under this Offer, or any agreement or plan referenced herein, in connection with your separation from service from the Company constitute deferred compensation subject to Section 409A of the Code (the “Deferred Payments”), such payments will be paid on, or in the case of installments, will not commence, until the sixtieth (60th) day following your separation from service, or if later, such time as required by Section 9(c).  Except as required by Section 9(c), any installment payments that would have been made to you during the sixty (60) day period immediately following your separation from service but for the preceding sentence will be paid to you on or around the sixtieth (60th) day following your separation from service and the remaining payments will be made as provided herein.
(c)If you are deemed at the time of such separation from service to be a “specified employee” under Section 409A of the Code, then any Deferred Payment(s) shall not be made or commence until the earliest of (i) the expiration of the six (6)-month period measured from the date of your “separation from service” (as such term is at the time defined in Treasury Regulations under Section 409A of the Code) with the Company or (ii) the date of your death following such separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to you, including (without limitation) the additional twenty percent (20%) tax for which you would otherwise be liable under Section 409A(a)(l)(B) of the Code in the absence of such deferral.  Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph shall be paid to you or your beneficiary in one lump sum.
(d)To the extent any payments to which you become entitled under this Offer, or any agreement or plan referenced herein, in connection with your separation from service from the Company constitute deferred compensation subject to Section 409A of the Code, you and the Company may make changes to this Offer to avoid adverse tax consequences under Section 409A.  Each payment and benefit payable hereunder is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.
10.Parachute Payments.
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(a)Reduction of Severance Benefits.  Notwithstanding anything set forth herein to the contrary, if any payment or benefit that you would receive from the Company or any other party whether in connection with the provisions herein or otherwise (the “Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment will be equal to the Best Results Amount. The “Best Results Amount” will be either (x) the full amount of such Payment or (y) such lesser amount as would result in no portion of the Payment being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local employment taxes, income taxes and the Excise Tax, results in your receipt, on an after-tax basis, of the greater amount notwithstanding that all or some portion of the Payment may be subject to the Excise Tax.  If a reduction in payments or benefits constituting parachute payments is necessary so that the Payment equals the Best Results Amount, reduction will occur in the following order: reduction of cash payments; cancellation of accelerated vesting of stock awards; and reduction of employee benefits.  In the event that acceleration of vesting of stock award compensation is to be reduced, such acceleration of vesting will be cancelled in the reverse order of the date of grant of your equity awards.
(b)Determination of Excise Tax Liability.  The Company will select a professional services firm to make all of the determinations required to be made under these paragraphs relating to parachute payments.  The Company will request that firm provide detailed supporting calculations both to the Company and you prior to the date on which the event that triggers the Payment occurs if administratively feasible, or subsequent to such date if events occur that result in parachute payments to you at that time.  For purposes of making the calculations required under these paragraphs relating to parachute payments, the firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith determinations concerning the application of the Code.  The Company and you will furnish to the firm such information and documents as the firm may reasonably request in order to make a determination under these paragraphs relating to parachute payments.  The Company will bear all costs the firm may reasonably incur in connection with any calculations contemplated by these paragraphs relating to parachute payments.  Any such determination by the firm will be binding upon the Company and you, and the Company will have no liability to you for the determinations of the firm.
11.Definitions.
(a)Cause.  For purposes of this Offer, “Cause” means (i) your conviction of or plea of nolo contendere to a felony or a crime involving moral turpitude which the Board believes has had or will have a detrimental effect on the Company’s reputation or business; (ii) your engaging in an act of gross negligence or willful misconduct in the performance of your employment obligations and duties; (iii) your committing an act of fraud against, material misconduct or willful misappropriation of 
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property belonging to the Company; (iv) your engaging in any other misconduct that has had or will have an adverse effect on the Company’s reputation or business; or (v) your breach of the Employee Invention Assignment and Confidentiality Agreement or other unauthorized misuse of the Company’s or a third party’s trade secrets or proprietary information.
(b)Change in Control.  For purposes of this Offer “Change in Control” means (i) a sale, conveyance, exchange or transfer (excluding any venture-backed or similar investments in the Company) in which any person or entity, other than persons or entities who as of immediately prior to such sale, conveyance, exchange or transfer own securities in the Company, either directly or indirectly, becomes the beneficial owner, directly or indirectly, of securities of the Company representing fifty (50%) percent of the total voting power of all its then-outstanding voting securities; (ii) a merger or consolidation of the Company in which its voting securities immediately prior to the merger or consolidation do not represent, or are not converted into securities that represent, a majority of the voting power of all voting securities of the surviving entity immediately after the merger or consolidation; or (iii) a sale of substantially all of the assets of the Company or a liquidation or dissolution of the  Company.
(c)Good Reason.  For purposes of this Offer, “Good Reason” means any of the following taken without your written consent and provided (a) the Company receives, within thirty (30) days following the occurrence of any of the events set forth in clauses (i) through (iv) below, written notice from you specifying the specific basis for your belief that you are entitled to terminate employment for Good Reason, (b) the Company fails to cure the event constituting Good Reason within thirty (30) days after receipt of such written notice thereof,  and (c) you terminate your employment within thirty (30) days following expiration of such cure period: (i) a material change, adverse to you, in your position, title(s), office(s) or duties; (ii) an assignment of any significant duties to you that are inconsistent with your positions or offices held under this Offer; (iii) a decrease in your then-current annual base salary by more than 10% (other than  in connection with a general decrease in the salary of all executives); or (iv) your relocation to a facility or a location more than thirty (30) miles from your residence.
12.Authorization to Work. As required by law, this offer of employment is contingent upon your providing legal proof of your identity and authorization to work in the United States within three (3) business days of starting your employment.
13.Policies.  You acknowledge that you have read and will comply with all Company policies, guidelines and processes in effect throughout your employment, including but not limited to the Company Code of Business Conduct and Ethics, Insider Trading Policy, Anticorruption Compliance Policy and Guidelines, and U.S.  Export Control Compliance Policy Statement.  You acknowledge that the Company may implement, modify or revoke Company policies, guidelines and processes from time to time, and you agree to read and comply with each then-current policy, guideline and/or process.
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14.Arbitration.
(a)Informal Resolution/Mediation.  In the event of any dispute or claim in any way relating to or arising out of your recruitment by the Company, your employment with the Company, or your separation from the Company, you and Splunk agree to initially attempt to resolve the issue informally or with the assistance of a neutral, outside mediator.  If any dispute or claim cannot be resolved by these means, and except as specifically listed below, the sole and exclusive means for final dispute or claim resolution is through final and binding arbitration, as more fully described in the Arbitration provision.  You may choose to opt out of arbitration; please see the last paragraph below in this Arbitration provision, to understand what you need to do to opt out.
(b)Arbitration. In consideration of your employment with the Company, its promise to arbitrate all employment-related disputes, and your receipt of the compensation, pay raises, and other benefits paid to you by the Company, at present and in the future, you agree that any and all controversies, claims, or disputes with anyone (including the Company and any employee, officer, director, shareholder, or benefit plan of the Company, in their capacity as such or otherwise), arising out of, relating to, or resulting from your recruitment by the Company, employment with the Company or your separation from service from the Company, including any breach of this Offer, shall be subject to binding arbitration under the arbitration provisions set forth in California Code of Civil Procedure sections 1280 through 1294.2, including section 1281.8 (the “Act”), and pursuant to California law.  The Federal Arbitration Act shall continue to apply with full force and effect notwithstanding the application of procedural rules set forth in the Act. Disputes that you agree to arbitrate, and thereby agree to waive any right to a trial by jury, include any statutory claims under local, state, or federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the Sarbanes-Oxley Act, the Worker Adjustment and Retraining Notification Act, the California Fair Employment and Housing Act, the Family and Medical Leave Act, the California Family Rights Act, the California Labor Code, the Florida Civil Human Rights Act, the Florida Omnibus AIDS Act, the Florida Whistleblower’s Act, Florida wage payment laws, claims of harassment, discrimination, wrongful termination, retaliation, unpaid wages, incentive compensation, breach of contract, torts and any statutory or common law claims. Notwithstanding the foregoing, you understand that nothing in this Offer constitutes a waiver of your rights under section 7 of the National Labor Relations Act. You further understand that this agreement to arbitrate also applies to any disputes that the Company may have with you. You and the Company each retain their right to and shall not be prohibited or limited from seeking or obtaining equitable relief from a court having jurisdiction over the parties.
To the extent permitted by law, all claims covered under this arbitration agreement must be brought in your individual capacity, and not as a plaintiff or 
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class member in any purported class or collective proceeding. No claim may be brought or maintained on a class or collective basis either in court or in arbitration.  All such claims will be decided on an individual basis in arbitration pursuant to the parties’ agreement to arbitrate.  The parties expressly waive any right with respect to any covered claims to submit, initiate, or participate as a plaintiff, claimant or member in a class or collective action, regardless of whether the action is filed in arbitration or in court.  Claims may not be joined or consolidated in arbitration with disputes brought by other individuals, unless agreed to in writing by all parties.
Any issue concerning the validity of this class action or collective action waiver must be decided by a Court and an arbitrator shall not have authority to consider the issue of the validity of this waiver.  If for any reason this class or collective action waiver is found to be unenforceable, the class action or collective action claim may only be heard in court and may not be arbitrated.  The arbitrator shall not have authority to hear or decide class or collective actions.  The arbitrator’s authority to resolve disputes and make awards under this Offer is limited to disputes between: (i) you and the Company; and (ii) you and any current or former officers directors, employees or agents of the Company, if such individual is sued for conduct arising out of his or her employment.  No arbitration award or decision will have any preclusive effect as to issues or claims in any dispute with anyone who is not a named party to the arbitration.  This agreement to arbitrate supersedes all arbitration agreements that previously existed between the employee and the Company.
(c)Procedure. You agree that any arbitration will be administered by Judicial Arbitration & Mediation Services, Inc. (“JAMS”), pursuant to its employment arbitration rules & procedures (the “JAMS rules”), which are available at http://www.jamsadr.com/rules-employment-arbitration/ and from Human Resources. You agree that the arbitrator shall issue a written decision on the merits. You also agree that the arbitrator shall have the power to award any remedies available under applicable law. You agree that the decree or award rendered by the arbitrator may be entered as a final and binding judgment in any court having jurisdiction thereof. You understand that the Company will pay for any administrative or hearing fees charged by the arbitrator or JAMS except that you shall pay any filing fees associated with any arbitration that you initiate, but only so much of the filing fees as you would have instead paid had you filed a complaint in a court of law. You agree that the arbitrator shall administer and conduct any arbitration in accordance with California law, including the California Code of Civil Procedure and the California Evidence Code, and that the arbitrator shall apply substantive and procedural California law to any dispute or claim, without reference to rules of conflict of law. To the extent that the JAMS rules conflict with California law, California law shall take precedence. You agree that any arbitration hearing under this Offer shall be conducted in San Francisco County, California.
(d)Remedy. Except as provided by the Act and this Offer, arbitration shall be the sole, exclusive, and final remedy for any dispute between you 
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and the Company. Accordingly, except as provided for by the Act and this Offer, neither you nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration.
(e)Administrative relief. This Offer does not prohibit you from pursuing an administrative claim with a local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, including, but not limited to, the Department of Fair Employment and Housing, the Equal Employment Opportunity Commission and the National Labor Relations Board. This also includes claims for workers’ compensation benefits, unemployment insurance, or state or federal disability insurance.  Moreover, this Offer does not apply to any other dispute or claim that has been expressly excluded from arbitration by statute.  Nothing in this Offer prohibits or restricts you from initiating communications directly with, responding to any inquiry from, or providing information or testimony to or before, the Securities and Exchange Commission (“SEC”), Department of Justice (“DOJ”), or any other governmental agency or department or self-regulatory organization, about actual or potential violations of laws or regulations (including lawfully reporting fraud, waste or abuse).  You are not required to obtain Splunk’s prior authorization before engaging in such communications, nor are you required to inform Splunk about such communications.  This Offer does, however, preclude you from pursuing court action regarding any such claim, except as permitted by law.
(f)Voluntary nature of agreement. You acknowledge and agree that you are executing this Offer voluntarily and without any duress or undue influence by the Company or anyone else. You further acknowledge and agree that you have carefully read this Offer and that you have asked any questions needed for you to understand the terms, consequences, and binding effect of this Offer and fully understand it, including that you are waiving your right to a jury trial. You agree that you have been provided an opportunity to seek the advice of an attorney of your choice before signing this Offer.
You may choose to opt out of arbitration  To do so, you must send an email to Human Resources at the following email address:  optout@splunk.com and your email must state, “I am opting out of arbitration.”  Your email must be received by Human Resources no later than twenty (20) days after your acceptance of this Offer.
15.Survival and Severability.  Upon termination of your employment for any reason, the obligations in sections 5 (Confidentiality); 8 (Section 409A Matters); 9 (Parachute Payments); 10 (Definitions); 12 (Policies); 13 (Arbitration); 14 (Survival and Severability); 15 (Complete Agreement); and 16 (Acceptance) shall survive and remain in full force and effect.  If any provision of this Agreement is held to be invalid or unenforceable, such term shall be excluded to the extent of such invalidity or unenforceability; all other terms shall remain in full force and effect and the invalid or 
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unenforceable term shall be deemed replaced by a valid and enforceable term that comes closest to expressing the intention of such invalid or unenforceable term.
16.Complete Agreement.  You understand and agree that this Offer, along with the Employee Invention Assignment and Confidentiality Agreement and any other agreements referenced herein, form the complete and exclusive statement of your employment with the Company and supersedes any prior offer letter, employment agreement and/or addenda existing between the parties, whether written or verbal. This Offer can only be modified by a written agreement signed by you and the Chief Executive Officer or Chief Human Resources Officer of the Company. 
17.Acceptance.  This offer of employment will remain open until 5:00 P.M. Pacific on May 4, 2021 and will thereafter expire. To accept this Offer, please sign in the space indicated and return to me.  Your signature will acknowledge that you have read, understand and agree to the terms and conditions of this Offer.

Please feel free to contact me if you have any questions.

Best,

Doug Merritt
President and Chief Executive Officer
Splunk Inc.

Enclosures:
–Employee Invention Assignment and Confidentiality Agreement
–Code of Business Conduct and Ethics
–Insider Trading Policy
–Anticorruption Compliance Policy and Guidelines
–U.S. Export Controls Compliance Policy Statement

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April 29, 2021

Acceptance and Agreement

I have read, understand, agree to and shall comply with each of the terms and conditions as set forth above.

I further acknowledge that no promises or commitments have been made to me except as specifically set forth herein.

									
	/s/ Shawn Bice		May 2, 2021
	Signature of Shawn Bice
		Date:

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