Document:

Form of Stock Option Agreement under Stock Incentive Plan- Early Exercise Form

 Exhibit 10.3B 
 SOLARWINDS, INC. 
 STOCK INCENTIVE PLAN 
 STOCK OPTION AGREEMENT — EARLY EXERCISE 
 Unless otherwise defined herein, the terms defined in the Stock Incentive Plan (the “Plan”) shall have the same defined meanings in this Stock Option Agreement – Early Exercise (the “Option Agreement”). 

 

	I.	NOTICE OF STOCK OPTION GRANT 

  

							
	Name:	 		 		 	
	Address:	 	  
	 		 	
				
		 	  
	 		 	

 The undersigned Participant has been granted an Option to purchase common stock of the Company,
subject to the terms and conditions of the Plan and this Option Agreement, as follows: 
  

							
	Date of Grant	 	  
	  	
			
	Vesting Commencement Date	 	  
	  	
			
	Exercise Price per share of Stock	 	     $
	  	
			
	Total Number of shares of Stock Granted	 	  
	  	
			
	Total Exercise Price	 	     $
	  	
				
	Type of Option:	 	  
	 	Incentive Stock Option	  	
				
		 	  
	 	Nonstatutory Stock Option	  	
			
	Term/Expiration Date:	 	  
	  	
			
	Vesting Schedule:	 		  	

 This Option shall be exercisable in whole or in part, according to the following vesting schedule:

 One fourth ( 1/
4th) of the shares of Stock subject to the Option shall vest on the one
(1) year anniversary of the Vesting Commencement Date, and one forty-eighth ( 1/48th) of the shares of Stock subject to the Option shall vest each month thereafter on the same day of the month as the Vesting Commencement Date (and if there is no corresponding
day, on the last day of the month), subject to Participant’s continuing service or employment with the Employer through each such date. 

 Termination Period: 
 This Option shall be exercisable for ninety (90) days after Participant ceases service or employment with the Employer for reasons other than Cause, death or Disability. If Participant’s employment or
service with the Employer is terminated due to Participant’s death or Disability, this Option may be exercised for twelve (12) months after Participant ceases service or employment with the Employer. If the Employer terminates
Participant’s employment or service for Cause, this Option (whether vested or unvested) shall immediately terminate as of the date of such termination. Notwithstanding the foregoing, in no event may this Option be exercised after the
Term/Expiration Date as provided above and may be subject to earlier termination as provided in Section 10(b) of the Plan. 
  

	II.	AGREEMENT 

 1. Grant of Option. The
Plan administrator of the Company hereby grants to the Participant named in the Notice of Grant in Part I of this Agreement (“Participant”) an option (the “Option”) to purchase the number of shares of Stock set forth in the
Notice of Grant, at the exercise price per share of Stock set forth in the Notice of Grant (the “Exercise Price”), and subject to the terms and conditions of the Plan, which is incorporated herein by reference. Subject to
Section 16(c) of the Plan, in the event of a conflict between the terms and conditions of the Plan and this Option Agreement, the terms and conditions of the Plan shall prevail. 
 If designated in the Notice of Grant as an incentive stock option (“ISO”), this Option is intended to qualify as an incentive stock option as
defined in Section 422 of the Code. Nevertheless, to the extent that it exceeds the $100,000 rule of Code Section 422(d), this Option shall be treated as a nonstatutory stock option (“NSO”). 
 2. Exercise of Option. This Option shall be exercisable during its term in accordance with the provisions of Section 5 of the Plan as
follows: 
 (a) Right to Exercise. 
 (i) Subject to subsections 2(a)(ii) and 2(a)(iii) below, this Option shall be exercisable cumulatively according to the vesting schedule set forth in the Notice of Grant. Alternatively, at the election of
Participant, this Option may be exercised in whole or in part at any time as to shares of Stock that have not yet vested. Vested shares of Stock shall not be subject to the Company’s repurchase right (as set forth in the Restricted Stock
Purchase Agreement, attached hereto as Exhibit C-1). 
 (ii) As a condition to exercising this Option for unvested shares of
Stock, Participant shall execute the Restricted Stock Purchase Agreement. 
 (iii) This Option may not be exercised for a fraction of a
Share. 
 (b) Method of Exercise. This Option shall be exercisable by delivery of an exercise notice in the form attached as
Exhibit A (the “Exercise Notice”) or in a manner and pursuant to such procedures as the Plan administrator may determine, which shall state the election to exercise the Option, the number of shares of Stock with respect to which the
Option is being 

  

 -2- 

 
exercised, and such other representations and agreements as may be required by the Company. The Exercise Notice shall be accompanied by payment of the
aggregate Exercise Price as to all exercised shares of Stock, together with any applicable tax withholding. This Option shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by the aggregate
Exercise Price, together with any applicable tax withholding. 
 No shares of Stock shall be issued pursuant to the exercise of an Option
unless such issuance and such exercise comply with the requirements relating to the administration of equity compensation plans under U.S. state corporate laws, U.S. federal and state securities laws, the Internal Revenue Code of 1986, as amended,
any stock exchange or quotation system on which the Stock is listed or quoted and the applicable laws of any other country or jurisdiction where Awards are granted under the Plan (“Applicable Laws”). Assuming such compliance, for income
tax purposes the shares of Stock shall be considered transferred to Participant on the date on which the Option is exercised with respect to such shares of Stock. 
 3. Participant’s Representations. In the event the shares of Stock have not been registered under the Securities Act of 1933, as amended, at the time this Option is exercised, Participant shall, if
required by the Company, concurrently with the exercise of all or any portion of this Option, deliver to the Company his or her Investment Representation Statement in the form attached hereto as Exhibit B. 
 4. Lock-Up Period. Participant hereby agrees that Participant shall not offer, pledge, sell, contract to sell, sell any option or contract to
purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any common stock (or other securities) of the Company or enter into any swap,
hedging or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any common stock (or other securities) of the Company held by Participant (other than those included in the registration)
for a period specified by the representative of the underwriters of common stock (or other securities) of the Company not to exceed one hundred eighty (180) days following the effective date of any registration statement of the Company filed
under the Securities Act (or such other period as may be requested by the Company or the underwriters to accommodate regulatory restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations
and opinions, including, but not limited to, the restrictions contained in NASD Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto). 
 Participant agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriter which are consistent
with the foregoing or which are necessary to give further effect thereto. In addition, if requested by the Company or the representative of the underwriters of common stock (or other securities) of the Company, Participant shall provide, within ten
(10) days of such request, such information as may be required by the Company or such representative in connection with the completion of any public offering of the Company’s securities pursuant to a registration statement filed under the
Securities Act. The obligations described in this Section shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely
to a Commission Rule 145 transaction on Form S-4 or similar forms that may be promulgated in the future. The Company may impose stop-transfer instructions with respect 

  

 -3- 

 
to the shares of common stock (or other securities) subject to the foregoing restriction until the end of said one hundred eighty (180) day (or other)
period. Participant agrees that any transferee of the Option or shares acquired pursuant to the Option shall be bound by this Section. 
 5.
Method of Payment. Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of Participant: 
 (a) cash; 
 (b) certified check or banker’s check; 
 (c) consideration received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan; or 
 (d) surrender of other shares of Stock which, (i) in the case of shares of Stock acquired from the Company, either directly or indirectly, have been
owned by Participant, and not subject to a substantial risk of forfeiture, for more than six (6) months on the date of surrender, and (ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the
exercised shares of Stock. 
 6. Restrictions on Exercise. This Option may not be exercised until such time as the Plan has been
approved by the stockholders of the Company, or if the issuance of such shares of Stock upon such exercise or the method of payment of consideration for such shares would constitute a violation of any Applicable Law. 
 7. Non-Transferability of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or
distribution and may be exercised during the lifetime of Participant only by Participant. The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of Participant. 

8. Term of Option. This Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during such term only
in accordance with the Plan and the terms of this Option. 
 9. Tax Obligations. 
 (a) Withholding Taxes. Participant agrees to make appropriate arrangements with the Company (or the Affiliate employing or retaining Participant)
for the satisfaction of all Federal, state, local and foreign income and employment tax withholding requirements applicable to the Option exercise. Participant acknowledges and agrees that the Company may refuse to honor the exercise and refuse to
deliver the shares of Stock if such withholding amounts are not delivered at the time of exercise. 
 (b) Notice of Disqualifying
Disposition of ISO Shares. If the Option granted to Participant herein is an ISO, and if Participant sells or otherwise disposes of any of the shares of Stock acquired pursuant to the ISO on or before the later of (i) the date two
(2) years after the Date of Grant, and (ii) the date one (1) year after the date of exercise, Participant shall immediately notify the Company in writing of such disposition. Participant agrees that Participant may be subject to
income tax withholding by the Company on the compensation income recognized by Participant. 
  

 -4- 

 (c) Code Section 409 A. Under Code Section 409A, an Option that vests after
December 31, 2004 that was granted with an exercise price per share of Stock that is determined by the Internal Revenue Service (the “IRS”) to be less than the fair market value of a share of Stock on the date of grant (a
“discount option”) may be considered “deferred compensation.” An Option that is a “discount option” may result in (i) income recognition by Participant prior to the exercise of the Option, (ii) an additional
twenty percent (20%) tax, and (iii) potential penalty and interest charges. Participant acknowledges that the Company cannot and has not guaranteed that the IRS will agree that the exercise price per share of Stock of this Option equals or
exceeds the Fair Market Value of a share of Stock on the date of grant in a later examination. Participant agrees that if the IRS determines that the Option was granted with an exercise price per share of Stock that was less than the Fair Market
Value of a share of Stock on the date of grant, Participant shall be solely responsible for Participant’s costs related to such a determination. 
 10. Restrictions. This Option and the shares of Stock issued on exercise of this Option are subject to the terms and limitations set forth in the Plan, including: (a) the Investors’ drag-along rights
set forth in Section 8(b) of the Plan, (b) the Company’s rights in the event Participant engages in any Competitive Activity during the term of Participant’s employment or service with the Employer or during the six
(6) month-period following the termination of Participant’s employment or service with the Employer, as set forth in Section 9 of the Plan, and (c) the Company’s repurchase rights upon Participant’s termination of
employment or service with the Employer, as set forth in Section 8(c) of the Plan. 
 11. Entire Agreement; Governing Law. The
Plan is incorporated herein by reference. The Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the
Company and Participant with respect to the subject matter hereof, and may not be modified adversely to Participant’s interest except by means of a writing signed by the Company and Participant. This Agreement is governed by the internal
substantive laws but not the choice of law rules of Oklahoma. 
 12. No Guarantee of Continued Service. PARTICIPANT ACKNOWLEDGES AND
AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS AN EMPLOYEE OR OTHER SERVICE PROVIDER AT THE WILL OF THE COMPANY (OR THE AFFILIATE EMPLOYING OR RETAINING PARTICIPANT) AND NOT THROUGH THE ACT
OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER. PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS OPTION AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN
EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE OR SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE RIGHT OF THE COMPANY (OR THE AFFILIATE
EMPLOYING OR RETAINING PARTICIPANT) TO TERMINATE PARTICIPANT’S RELATIONSHIP AS AN EMPLOYEE OR SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE. 
  

 -5- 

 Participant acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the
terms and provisions thereof, and hereby accepts this Option subject to all of the terms and provisions thereof. Participant has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Option and fully understands all provisions of the Option. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Plan administrator upon any questions arising under the Plan or
this Option. Participant further agrees to notify the Company upon any change in the residence address indicated below. 
  

							
	PARTICIPANT	 		 	SOLARWINDS, INC.
				
	  
	 		 	By:	 	  

	Signature	 		 		 	
				
	  
	 		 	Title:	 	  

	Print Name	 		 		 	
				
	  
	 		 	Name:	 	  

	Address	 		 		 	
	  
	 		 		 	

  

 -6- 

 EXHIBIT A 
 STOCK INCENTIVE PLAN 
 EXERCISE NOTICE 
 SolarWinds, Inc. 
 IV Barton Skyway 
 1301 S. Mopac Expressway, Ste. 360 
 Austin, Texas 78746 
 Attention: Stock Administrator 
 1. Exercise of
Option. Effective as of today,                 ,         , the undersigned (“Participant”) hereby
elects to exercise Participant’s option (the “Option”) to purchase                  shares of the common stock (the “Shares”) of
SolarWinds, Inc. (the “Company”) under and pursuant to the Stock Incentive Plan (the “Plan”) and the Stock Option Agreement dated
                     (the “Option Agreement”). 
 2. Delivery of Payment. Participant herewith delivers to the Company the full purchase price of the Shares, as set forth in the Option Agreement, and any and all withholding taxes due in connection with the
exercise of the Option. 
 3. Representations of Participant. Participant acknowledges that Participant has received, read and
understood the Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions, without limitation, the terms of Section 4 (“Lock-Up Period”) of the Option Agreement. 
 4. Rights as Stockholder. Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Option, notwithstanding the exercise of the Option. The Shares shall be issued to Participant as
soon as practicable after the Option is exercised in accordance with the Option Agreement. No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance except as provided in Section 10 of
the Plan. 
 5. Company’s Right of First Refusal. Before any Shares held by Participant or any transferee (either being sometimes
referred to herein as the “Holder”) may be sold or otherwise transferred (including transfer by gift or operation of law), the Company or its assignee(s) shall have a right of first refusal to purchase the Shares on the terms and
conditions set forth in this Section 5 (the “Right of First Refusal”). 
 (a) Notice of Proposed Transfer. The Holder of
the Shares shall deliver to the Company a written notice (the “Notice”) stating: (i) the Holder’s bona fide intention to sell or otherwise transfer such Shares; (ii) the name of each proposed purchaser or other transferee
(“Proposed Transferee”); (iii) the number of Shares to be transferred to each Proposed Transferee; and (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer the Shares (the “Offered
Price”), and the Holder shall offer the Shares at the Offered Price to the Company or its assignee(s). 

 (b) Exercise of Right of First Refusal. At any time within thirty (30) days after receipt of
the Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all, but not less than all, of the Shares proposed to be transferred to any one or more of the Proposed Transferees, at the purchase price
determined in accordance with subsection (c) below. 
 (c) Purchase Price. The purchase price (“Purchase Price”) for
the Shares purchased by the Company or its assignee(s) under this Section 5 shall be the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by
the Board of Directors of the Company in good faith. 
 (d) Payment. Payment of the Purchase Price shall be made, at the option of the
Company or its assignee(s), in cash (by check), by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any combination thereof within
thirty (30) days after receipt of the Notice or in the manner and at the times set forth in the Notice. 
 (e) Holder’s Right to
Transfer. If all of the Shares proposed in the Notice to be transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section 5, then the Holder may sell or otherwise transfer
such Shares to that Proposed Transferee at the Offered Price or at a higher price, provided that such sale or other transfer is consummated within one hundred and twenty (120) days after the date of the Notice, that any such sale or other
transfer is effected in accordance with any applicable securities laws and that the Proposed Transferee agrees in writing that the provisions of this Section 5 shall continue to apply to the Shares in the hands of such Proposed Transferee. If
the Shares described in the Notice are not transferred to the Proposed Transferee within such period, a new Notice shall be given to the Company, and the Company and/or its assignees shall again be offered the Right of First Refusal before any
Shares held by the Holder may be sold or otherwise transferred. 
 (f) Exception for Certain Family Transfers. Anything to the
contrary contained in this Section 5 notwithstanding, the transfer of any or all of the Shares during Participant’s lifetime or on Participant’s death by will or intestacy to Participant’s immediate family or a trust for the
benefit of Participant’s immediate family shall be exempt from the provisions of this Section 5. “Immediate Family” as used herein shall mean spouse, lineal descendant or antecedent, father, mother, brother or sister. In such
case, the transferee or other recipient shall receive and hold the Shares so transferred subject to the provisions of this Section 5, and there shall be no further transfer of such Shares except in accordance with the terms of this
Section 5. 
 (g) Termination of Right of First Refusal. The Right of First Refusal shall terminate as to any Shares upon the
earlier of (i) the first sale of common stock of the Company to the general public, or (ii) a Change in Control in which the successor corporation has equity securities that are publicly traded. 
  

 -2- 

 6. Tax Consultation. Participant understands that Participant may suffer adverse tax consequences
as a result of Participant’s purchase or disposition of the Shares. Participant represents that Participant has consulted with any tax consultants Participant deems advisable in connection with the purchase or disposition of the Shares and that
Participant is not relying on the Company for any tax advice. 
 7. Restrictive Legends and Stop-Transfer Orders. 
 (a) Legends. Participant understands and agrees that the Company shall cause the legends set forth below or legends substantially equivalent
thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by the Company or by state or federal securities laws: 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND A RIGHT OF FIRST REFUSAL HELD BY THE ISSUER
OR ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE
BINDING ON TRANSFEREES OF THESE SHARES. 
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER FOR A PERIOD OF
TIME FOLLOWING THE EFFECTIVE DATE OF THE UNDERWRITTEN PUBLIC OFFERING OF THE COMPANY’S SECURITIES SET FORTH IN AN AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF BY THE HOLDER
PRIOR TO THE EXPIRATION OF SUCH PERIOD WITHOUT THE CONSENT OF THE COMPANY OR THE MANAGING UNDERWRITER. 
 (b) Stop-Transfer Notices.
Participant agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own
securities, it may make appropriate notations to the same effect in its own records. 
 (c) Refusal to Transfer. The Company
shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Exercise Notice or (ii) to treat as owner of such Shares or to accord the right to
vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred. 
  

 -3- 

 8. Successors and Assigns. The Company may assign any of its rights under this Exercise Notice to
single or multiple assignees, and this Exercise Notice shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Exercise Notice shall be binding upon Participant and his
or her heirs, executors, administrators, successors and assigns. 
 9. Interpretation. Any dispute regarding the interpretation of
this Exercise Notice shall be submitted by Participant or by the Company forthwith to the Plan administrator, which shall review such dispute at its next regular meeting. The resolution of such a dispute by the Plan administrator shall be final and
binding on all parties. 
 10. Governing Law; Severability. This Exercise Notice is governed by the internal substantive laws, but not
the choice of law rules, of Oklahoma. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Exercise Notice shall continue in full force and effect. 

11. Entire Agreement. The Plan and Option Agreement are incorporated herein by reference. This Exercise Notice, the Plan, the Restricted Stock
Purchase Agreement, the Option Agreement and the Investment Representation Statement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of
the Company and Participant with respect to the subject matter hereof, and may not be modified adversely to Participant’s interest except by means of a writing signed by the Company and Participant. 
  

							
	Submitted by:	 		 	Accepted by:
			
	PARTICIPANT	 		 	SOLARWINDS, INC.
				
	  
	 		 	By:	 	  

	Signature	 		 		 	
				
	  
	 		 	Name:	 	  

	Print Name	 		 		 	
				
	  
	 		 	Title:	 	  

			
	Address:	 		 	Address:
	  
	 		 	IV Barton Skyway
	  
	 		 	 1301 S. Mopac Expressway, Ste. 360
 Austin, Texas 78746

			
		 		 	  

		 		 	Date Received

  

 -4- 

 EXHIBIT B 
 INVESTMENT REPRESENTATION STATEMENT 
  

							
				
	PARTICIPANT	  	:	  	  
	 	
				
	COMPANY	  	:	  	SOLARWINDS, INC.	 	
				
	SECURITY	  	:	  	COMMON STOCK	 	
				
	AMOUNT	  	:	  	  
	 	SHARES
				
	DATE	  	:	  	  
	 	

 In connection with the purchase of the above-listed Securities, the undersigned Participant represents to the
Company the following: 
 (a) Participant is aware of the Company’s business affairs and financial condition and has acquired sufficient
information about the Company to reach an informed and knowledgeable decision to acquire the Securities. Participant is acquiring these Securities for investment for Participant’s own account only and not with a view to, or for resale in
connection with, any “distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”). 
 (b) Participant acknowledges and understands that the Securities constitute “restricted securities” under the Securities Act and have not been registered under the Securities Act in reliance upon a specific
exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Participant’s investment intent as expressed herein. In this connection, Participant understands that, in the view of the Securities and Exchange
Commission, the statutory basis for such exemption may be unavailable if Participant’s representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for
a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future. Participant further understands that the Securities must be held indefinitely unless
they are subsequently registered under the Securities Act or an exemption from such registration is available. Participant further acknowledges and understands that the Company is under no obligation to register the Securities. Participant
understands that the certificate evidencing the Securities shall be imprinted with any legend required under applicable state securities laws. 
 (c) Participant is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of “restricted securities” acquired, directly or
indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to Participant, the
exercise shall be exempt from registration under the Securities Act. In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or such

 
longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold, subject to the satisfaction of certain
of the conditions specified by Rule 144, including: (1) the resale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly with a market maker (as said term is defined under the
Securities Exchange Act of 1934); and, in the case of an affiliate, (2) the availability of certain public information about the Company, (3) the amount of Securities being sold during any three (3) month period not exceeding the
limitations specified in Rule 144(e), and (4) the timely filing of a Form 144, if applicable. 
 In the event that the Company does
not qualify under Rule 701 at the time of grant of the Option, then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which requires the resale to occur not less than one
(1) year after the later of the date the Securities were sold by the Company or the date the Securities were sold by an affiliate of the Company, within the meaning of Rule 144; and, in the case of acquisition of the Securities by an
affiliate, or by a non-affiliate who subsequently holds the Securities less than two (2) years, the satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of the paragraph immediately above. 
 (d) Participant further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under
the Securities Act, compliance with Regulation A, or some other registration exemption shall be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed
its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 shall have a substantial burden of proof in establishing that an exemption from registration
is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. Participant understands that no assurances can be given that any such other registration
exemption shall be available in such event. 
  

	
	 PARTICIPANT

	
	  

	Signature
	
	  

	Print Name
	
	  

	Date

  

 -2- 

 EXHIBIT C-1 
 SOLARWINDS, INC. 
 STOCK INCENTIVE PLAN 
 RESTRICTED STOCK PURCHASE AGREEMENT 
 THIS RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”) is made between
                                        
(the “Purchaser”) and SolarWinds, Inc. (the “Company”) or its assignees of rights hereunder as of                     ,
        . 
 Unless otherwise defined herein, the terms defined in the Stock Incentive Plan
shall have the same defined meanings in this Agreement. 
 RECITALS 
 A. Pursuant to the exercise of the option granted to Purchaser under the Plan and pursuant to the Stock Option Agreement (the “Option
Agreement”) dated                      by and between the Company and Purchaser with respect to such grant (the
“Option”), which Plan and Option Agreement are hereby incorporated by reference, Purchaser has elected to purchase
                     of those shares of common stock which have not become vested under the vesting schedule set forth in the Option Agreement
(“Unvested Shares”). The Unvested Shares and the shares subject to the Option Agreement, which have become vested are sometimes collectively referred to herein as the “Shares.” 
 B. As required by the Option Agreement, as a condition to Purchaser’s election to exercise the option, Purchaser must execute this Agreement, which
sets forth the rights and obligations of the parties with respect to Shares acquired upon exercise of the Option. 
 1. Repurchase
Option. 
 (a) If Purchaser’s status as a an employee or other service provider is terminated for any reason, including for death and
Disability, the Company shall have the right and option for ninety (90) days from such date to purchase from Purchaser, or Purchaser’s personal representative, as the case may be, all of the Purchaser’s Unvested Shares as of the date
of such termination at the price paid by the Purchaser for such Shares (the “Repurchase Option”). 
 (b) Upon the occurrence of
such termination, the Company may exercise its Repurchase Option by delivering personally or by registered mail, to Purchaser (or his transferee or legal representative, as the case may be) with a copy to the escrow agent described in Section 2
below, a notice in writing indicating the Company’s intention to exercise the Repurchase Option AND, at the Company’s option, (i) by delivering to the Purchaser (or the Purchaser’s transferee or legal representative) a check in
the amount of the aggregate repurchase price, or (ii) by the Company canceling an amount of the Purchaser’s indebtedness to the Company equal to the aggregate repurchase price, or (iii) by a combination of (i) and (ii) so
that the combined payment and 

 
cancellation of indebtedness equals such aggregate repurchase price. Upon delivery of such notice and payment of the aggregate repurchase price in any of the
ways described above, the Company shall become the legal and beneficial owner of the Unvested Shares being repurchased and the rights and interests therein or relating thereto, and the Company shall have the right to retain and transfer to its own
name the number of Unvested Shares being repurchased by the Company. 
 (c) Whenever the Company shall have the right to repurchase Unvested
Shares hereunder, the Company may designate and assign one or more employees, officers, directors or stockholders of the Company or other persons or organizations to exercise all or a part of the Company’s Repurchase Option under this Agreement
and purchase all or a part of such Unvested Shares. 
 (d) If the Company does not elect to exercise the Repurchase Option conferred above by
giving the requisite notice within ninety (90) days following the termination, the Repurchase Option shall terminate. 
 (e) The
Repurchase Option shall terminate in accordance with the vesting schedule contained in Purchaser’s Option Agreement. 
 2.
Transferability of the Shares; Escrow. 
 (a) Purchaser hereby authorizes and directs the Secretary of the Company, or such other
person designated by the Company, to transfer the Unvested Shares as to which the Repurchase Option has been exercised from Purchaser to the Company. 
 (b) To insure the availability for delivery of Purchaser’s Unvested Shares upon repurchase by the Company pursuant to the Repurchase Option under Section 1, Purchaser hereby appoints the Secretary, or any
other person designated by the Company as escrow agent (the “Escrow Agent”), as its attorney-in-fact to sell, assign and transfer unto the Company, such Unvested Shares, if any, repurchased by the Company pursuant to the Repurchase Option
and shall, upon execution of this Agreement, deliver and deposit with the Escrow Agent, the share certificates representing the Unvested Shares, together with the stock assignment duly endorsed in blank, attached hereto as Exhibit C-2. The
Unvested Shares and stock assignment shall be held by the Escrow Agent in escrow, pursuant to the Joint Escrow Instructions of the Company and Purchaser attached as Exhibit C-3 hereto, until the Company exercises its Repurchase Option, until
such Unvested Shares are vested, or until such time as this Agreement no longer is in effect. Upon vesting of the Unvested Shares, the Escrow Agent shall promptly deliver to the Purchaser the certificate or certificates representing such Shares in
the Escrow Agent’s possession belonging to the Purchaser, and the Escrow Agent shall be discharged of all further obligations hereunder; provided, however, that the Escrow Agent shall nevertheless retain such certificate or certificates as
Escrow Agent if so required pursuant to other restrictions imposed pursuant to this Agreement. 
 (c) Neither the Company nor the Escrow
Agent shall be liable for any act it may do or omit to do with respect to holding the Shares in escrow and while acting in good faith and in the exercise of its judgment. 
 (d) Transfer or sale of the Shares is subject to restrictions on transfer imposed by any applicable state and federal securities laws. Any transferee shall hold such Shares subject to all 

  

 -2- 

 
the provisions hereof and the Exercise Notice executed by the Purchaser with respect to any Unvested Shares purchased by Purchaser and shall acknowledge the
same by signing a copy of this Agreement. 
 3. Ownership, Voting Rights, Duties. This Agreement shall not affect in any way the
ownership, voting rights or other rights or duties of Purchaser, except as specifically provided herein. 
 4. Legends. The share
certificate evidencing the Shares issued hereunder shall be endorsed with the following legend (in addition to any legend required under applicable federal and state securities laws): 
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS UPON TRANSFER AND RIGHTS OF REPURCHASE AS SET FORTH IN AN AGREEMENT BETWEEN
THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY. 
 5. Adjustment for Stock Split. All
references to the number of Shares and the purchase price of the Shares in this Agreement shall be appropriately adjusted to reflect any stock split, stock dividend or other change in the Shares, which may be made by the Company pursuant to
Section 10 of the Plan after the date of this Agreement. 
 6. Notices. Notices required hereunder shall be given in person or by
registered mail to the address of Purchaser shown on the records of the Company, and to the Company at their respective principal executive offices. 
 7. Survival of Terms. This Agreement shall apply to and bind Purchaser and the Company and their respective permitted assignees and transferees, heirs, legatees, executors, administrators and legal successors.

 8. Section 83(b) Election. Purchaser hereby acknowledges that he or she has been informed that, with respect to the exercise
of an Option for Unvested Shares, an election (the “Election”) may be filed by the Purchaser with the Internal Revenue Service, within thirty (30) days of the purchase of the exercised Shares, electing pursuant to Section 83(b)
of the Code to be taxed currently on any difference between the purchase price of the exercised Shares and their Fair Market Value on the date of purchase. In the case of a nonstatutory stock option, this shall result in recognition of taxable
income to the Purchaser on the date of exercise, measured by the excess, if any, of the Fair Market Value of the exercised Shares, at the time the Option is exercised over the purchase price for the exercised Shares. Absent such an Election, taxable
income shall be measured and recognized by Purchaser at the time or times on which the Company’s Repurchase Option lapses. In the case of an incentive stock option, such an Election shall result in a recognition of income to the Purchaser for
alternative minimum tax purposes on the date of exercise, measured by the excess, if any, of the Fair Market Value of the exercised Shares, at the time the option is exercised, over the purchase price for the exercised Shares. Absent such an
Election, alternative minimum taxable income shall be measured and recognized by Purchaser at the time or times on which the Company’s Repurchase Option lapses. Purchaser is strongly encouraged to seek the 

  

 -3- 

 
advice of his or her own tax consultants in connection with the purchase of the Shares and the advisability of filing of the Election under
Section 83(b) of the Code. A form of Election under Section 83(b) is attached hereto as Exhibit C-4 for reference. 
 PURCHASER ACKNOWLEDGES THAT IT IS PURCHASER’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b) OF THE CODE, EVEN IF PURCHASER REQUESTS THE COMPANY OR ITS REPRESENTATIVE TO MAKE THIS
FILING ON PURCHASER’S BEHALF. 
 9. Representations. Purchaser has reviewed with his own tax advisors the federal, state, local
and foreign tax consequences of this investment and the transactions contemplated by this Agreement. Purchaser is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. Purchaser understands
that he (and not the Company) shall be responsible for his own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement. 
 10. Governing Law. This Agreement shall be governed by the internal substantive laws, but not the choice of law rules, of Oklahoma. 
 Purchaser represents that he has read this Agreement and is familiar with its terms and provisions. Purchaser hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Board upon any questions arising under this Agreement. 
 IN WITNESS WHEREOF,
this Agreement is deemed made as of the date first set forth above. 
  

							
	PURCHASER	 		  	SOLARWINDS, INC.
				
	  
	 		  	By:	  	  

	Signature	 		  		  	
				
	  
	 		  	Name:	  	  

	Print Name	 		  		  	
				
	  
	 		  	Title:	  	  

	Address	 		  		  	
				
	Dated:                     ,         
	 		  		  	

  

 -4- 

 EXHIBIT C-2 
 ASSIGNMENT SEPARATE FROM CERTIFICATE 
 FOR VALUE RECEIVED I,
                                        ,
hereby sell, assign and transfer unto SolarWinds, Inc.
                                        
(                    ) shares of the common stock of SolarWinds, Inc. standing in my name of the books of said corporation represented by
Certificate No. _____ herewith and do hereby irrevocably constitute and appoint                      to transfer the said stock on the
books of the within named corporation with full power of substitution in the premises. 
 This Stock Assignment may be used only in
accordance with the Restricted Stock Purchase Agreement between SolarWinds, Inc. and the undersigned dated                     ,
         (the “Agreement”). 
  

							
	Dated:                     ,         
	 		  	Signature:	  	  

 INSTRUCTIONS: Please do not fill in any blanks other than the signature line. The purpose of this
assignment is to enable the Company to exercise its “repurchase option,” as set forth in the Agreement, without requiring additional signatures on the part of the Purchaser. 

 EXHIBIT C-3 
 JOINT ESCROW INSTRUCTIONS 
                     ,          
 Escrow Agent Wilson Sonsini Goodrich & Rosati, P.C. 
 900 South
Capital of Texas Highway 
 Las Cimas IV, Fifth Floor 
 Austin,
Texas 78746 
 Dear Escrow Agent: 
 As Escrow
Agent for both SolarWinds, Inc. (the “Company”), and the undersigned purchaser of stock of the Company (the “Purchaser”), you are hereby authorized and directed to hold the documents delivered to you pursuant to the terms of that
certain Restricted Stock Purchase Agreement (the “Agreement”) between the Company and the undersigned, in accordance with the following instructions: 
 1. In the event the Company and/or any assignee of the Company (referred to collectively for convenience herein as the “Company”) exercises the Company’s repurchase option set forth in the Agreement,
the Company shall give to Purchaser and you a written notice specifying the number of shares of stock to be purchased, the purchase price, and the time for a closing hereunder at the principal office of the Company. Purchaser and the Company hereby
irrevocably authorize and direct you to close the transaction contemplated by such notice in accordance with the terms of said notice. 
 2.
At the closing, you are directed (a) to date the stock assignments necessary for the transfer in question, (b) to fill in the number of shares being transferred, and (c) to deliver the stock assignments, together with the certificate
evidencing the shares of stock to be transferred, to the Company or its assignee, against the simultaneous delivery to you of the purchase price (by cash, a check, or some combination thereof) for the number of shares of stock being purchased
pursuant to the exercise of the Company’s repurchase option. 
 3. Purchaser irrevocably authorizes the Company to deposit with you any
certificates evidencing shares of stock to be held by you hereunder and any additions and substitutions to said shares as defined in the Agreement. Purchaser does hereby irrevocably constitute and appoint you as Purchaser’s attorney-in-fact and
agent for the term of this escrow to execute with respect to such securities all documents necessary or appropriate to make such securities negotiable and to complete any transaction herein contemplated, including but not limited to the filing with
any applicable state blue sky authority of any required applications for consent to, or notice of transfer of, the securities. Subject to the provisions of this Section 3, Purchaser shall exercise all rights and privileges of a stockholder of
the Company while the stock is held by you. 
 4. Upon written request of the Purchaser, but no more than once per calendar year, unless the
Company’s repurchase option has been exercised, you shall deliver to Purchaser a 

 
certificate or certificates representing so many shares of stock as are not then subject to the Company’s repurchase option. Within one hundred and
twenty (120) days after cessation of Purchaser’s continuous employment by or services to the Company, or any parent or subsidiary of the Company, you shall deliver to Purchaser a certificate or certificates representing the aggregate
number of shares held or issued pursuant to the Agreement and not purchased by the Company or its assignees pursuant to exercise of the Company’s repurchase option. 
 5. If at the time of termination of this escrow you should have in your possession any documents, securities, or other property belonging to Purchaser, you shall deliver all of the same to Purchaser and shall be
discharged of all further obligations hereunder. 
 6. Your duties hereunder may be altered, amended, modified or revoked only by a writing
signed by all of the parties hereto. 
 7. You shall be obligated only for the performance of such duties as are specifically set forth
herein and may rely and shall be protected in relying or refraining from acting on any instrument reasonably believed by you to be genuine and to have been signed or presented by the proper party or parties. You shall not be personally liable for
any act you may do or omit to do hereunder as Escrow Agent or as attorney-in-fact for Purchaser while acting in good faith, and any act done or omitted by you pursuant to the advice of your own attorneys shall be conclusive evidence of such good
faith. 
 8. You are hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person
or corporation, excepting only orders or process of courts of law and are hereby expressly authorized to comply with and obey orders, judgments or decrees of any court. In case you obey or comply with any such order, judgment or decree, you shall
not be liable to any of the parties hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or found to
have been entered without jurisdiction. 
 9. You shall not be liable in any respect on account of the identity, authorities or rights of the
parties executing or delivering or purporting to execute or deliver the Agreement or any documents or papers deposited or called for hereunder. 
 10. You shall not be liable for the outlawing of any rights under the Statute of Limitations with respect to these Joint Escrow Instructions or any documents deposited with you. 
 11. You shall be entitled to employ such legal counsel and other experts as you may deem necessary properly to advise you in connection with your
obligations hereunder, may rely upon the advice of such counsel, and may pay such counsel reasonable compensation therefor. 
 12. Your
responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be an officer or agent of the Company or if you shall resign by written notice to each party. In the event of any such termination, the Company shall appoint a
successor Escrow Agent. 
 13. If you reasonably require other or further instruments in connection with these Joint Escrow Instructions or
obligations in respect hereto, the necessary parties hereto shall join in furnishing such instruments. 
  

 -2- 

 14. It is understood and agreed that should any dispute arise with respect to the delivery and/or
ownership or right of possession of the securities held by you hereunder, you are authorized and directed to retain in your possession without liability to anyone all or any part of said securities until such disputes shall have been settled either
by mutual written agreement of the parties concerned or by a final order, decree or judgment of a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but you shall be under no duty whatsoever to
institute or defend any such proceedings. 
 15. Any notice required or permitted hereunder shall be given in writing and shall be deemed
effectively given upon personal delivery or upon deposit in the United States Post Office, by registered or certified mail with postage and fees prepaid, addressed to each of the other parties thereunto entitled at the following addresses or at such
other addresses as a party may designate by ten days’ advance written notice to each of the other parties hereto. 
 16. By signing
these Joint Escrow Instructions, you become a party hereto only for the purpose of said Joint Escrow Instructions; you do not become a party to the Agreement. 
 17. This instrument shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns. 
 18. These Joint Escrow Instructions shall be governed by the internal substantive laws, but not the choice of law rules, of Oklahoma. 
  

							
	PURCHASER	 		  	SOLARWINDS, INC.
				
	  
	 		  	By:	  	  

	Signature	 		  		  	
				
	  
	 		  	Name:	  	  

	Print Name	 		  		  	
				
	  
	 		  	Title:	  	  

	Address	 		  		  	
				
	ESCROW AGENT	 		  		  	
	Wilson Sonsini Goodrich & Rosati, P.C.	 		  		  	
				
	  
	 		  		  	
	Paul Tobias, Member	 		  		  	
				
	 Dated:                     ,
        
	 		  		  	

  

 -3- 

 EXHIBIT C-4 
 ELECTION UNDER SECTION 83(b) 
 OF THE INTERNAL REVENUE CODE OF 1986 
 The undersigned taxpayer hereby elects, pursuant to Sections 55 and 83(b) of the Internal Revenue Code of 1986, as amended, to include in taxpayer’s gross income or
alternative minimum taxable income, as the case may be, for the current taxable year the amount of any compensation taxable to taxpayer in connection with taxpayer’s receipt of the property described below 
  

	1.	The name, address, taxpayer identification number and taxable year of the undersigned are as follows: 

  

					
	 NAME:
	 	TAXPAYER:	 	SPOUSE:
	 ADDRESS:
	 		 	
	 IDENTIFICATION NO.:
	 	TAXPAYER:	 	SPOUSE:
	 TAXABLE YEAR:
	 		 	

  

	2.	The property with respect to which the election is made is described as follows:              shares (the
“Shares”) of the common stock of SolarWinds, Inc. (the “Company”). 

  

	3.	The date on which the property was transferred is:                    ,
        . 

  

	4.	The property is subject to the following restrictions: 

 The Shares may not be transferred and are subject to forfeiture under the terms of an agreement between the taxpayer and the Company. These restrictions lapse upon the satisfaction of certain conditions contained in such agreement.

  

	5.	The fair market value at the time of transfer, determined without regard to any restriction other than a restriction which by its terms shall never lapse, of such property is:
$            . 

  

	6.	The amount (if any) paid for such property is: $            . 

 The undersigned has submitted a copy of this statement to the person for whom the services were performed in connection with the undersigned’s receipt of the
above-described property. The transferee of such property is the person performing the services in connection with the transfer of said property. 
 The
undersigned understands that the foregoing election may not be revoked except with the consent of the Commissioner. 
  

			
	Dated:                     ,         
	  	  

		  	Taxpayer
		
	The undersigned spouse of taxpayer joins in this election.	  	
		
	Dated:                     ,         
	  	  

		  	Spouse of TaxpayerEmployment Agreement between the Registrant and Michael S. Bennett

 Exhibit 10.7 
 EMPLOYMENT AGREEMENT 
 AGREEMENT, dated and effective as of May 11, 2006, by and between
SolarWinds.Net, Inc., an Oklahoma corporation (the “Company”), and Michael Bennett (the “Executive”). 
 IN CONSIDERATION
of the premises and the mutual covenants set forth below, the parties hereby agree as follows: 
 1. Position and Duties.

 (a) Effective May 30, 2006 (the “Effective Date”), the Executive will be employed by the Company,
on a full-time basis as its President and Chief Executive Officer. The Executive shall be a member of the Board of Directors. In addition, the Executive may be asked from time to time to serve as a director or officer of one or more of the
Company’s subsidiaries, without further compensation. 
 (b) The Executive agrees to perform the duties of his position
and such other duties as may reasonably be assigned to the Executive from time to time. The Executive also agrees that, while employed by the Company, the Executive will devote substantially all of his business time and efforts to the advancement of
the business and interests of the Company and its subsidiaries and to the discharge of his duties and responsibilities for them. Notwithstanding the above, the Executive shall be permitted, to the extent such activities do not in the aggregate
materially interfere with the performance by the Executive of his duties and responsibilities hereunder to (i) continue to serve as a director of BBS Technologies, Five Runs Corp, and Blue Coat Systems, Inc.; (ii) manage his personal,
financial and legal affairs; and, (iii) serve on civic, educational, philanthropic or charitable boards or committees. 
 (c) The Company agrees to set up and maintain a corporate office in Austin, Texas sufficient to support senior management, including the incorporation of related functions (for example, but not to be limited to, administrative, sales and
marketing positions). The office will be set up within ninety (90) days of the Effective Date of this Agreement. 
 2. Compensation
and Benefits. During the Executive’s employment, as compensation for all services performed by the Executive for the Company and its subsidiaries, the Company will provide the Executive the following pay and benefits: 
 (a) Base Salary. The Company will pay the Executive a base salary at the rate of Three Hundred Fifty Thousand Dollars ($350,000)
per year (“Base Salary”), payable in accordance with the regular payroll practices of the Company and subject to increase from time to time by the Board of Directors of the Company (the “Board”) in their discretion. 

(b) Bonus Compensation. During employment, the Executive shall be eligible for a bonus, paid on a quarterly basis, targeted at
an aggregate of One Hundred Fifty Thousand Dollars ($150,000) per year based on the attainment of certain quarterly corporate performance objectives mutually agreed upon in advance by the Executive and the Board. The Company and Executive agree to
use their best reasonable efforts to establish the initial performance objectives within ninety (90) days of the Effective Date. 

 (c) Signing Bonus. The Company will pay the Executive a bonus of $75,000 on the
first day of his employment with the Company (the “Vesting Commencement Date”), payable to a private foundation of the Executive’s choosing. The Executive shall repay to the Company the amount of the bonus if he voluntarily
terminates his employment with the Company less than one (1) year following the Effective Date, unless such termination is for Good Reason, as defined in Section 4(b). 
 (d) Stock Options. As of the Vesting Commencement Date, the Company shall grant the Executive an option to purchase a number of
shares of common stock of the Company (the “Common Stock”) equal to five percent (5%) of outstanding Common Stock on such date, determined on a fully diluted basis, at an exercise price equal to the Fair Market Value (as such
term is defined in the Plan) on the Vesting Commencement Date. The option shall vest as to twenty-five percent (25%) on the first anniversary of the Vesting Commencement Date and the remainder shall vest ratably over the next thirty six
(36) months thereafter, and shall otherwise be subject to (i) the terms and conditions of the Plan and a stock option agreement entered into between the parties hereto, and (ii) the accelerated vesting provisions of sections 5(a)(v)
and 6 of this Agreement. Notwithstanding anything to the contrary in any stock plan or stock agreement, following his termination from employment for any reason, Executive shall have up to twelve months from the date of his termination to exercise
any stock options that are vested as of the effective date of Executive’s termination. 
 (e) Participation in
Employee Benefit Plans and Vacation Policies. The Executive will be entitled to participate in all employee benefit plans and vacation policies in effect for employees and senior executives of the Company. The Executive’s participation will
be subject to the terms of the applicable plan documents and generally applicable Company policies. 
 (f) Business
Expenses. The Company will pay or reimburse the Executive for all reasonable business expenses incurred or paid by the Executive in the performance of his duties and responsibilities for the Company, including (i) round-trip travel between
Tulsa, Oklahoma and Austin, Texas as necessary for Executive to perform his job duties pursuant to this Agreement, and (ii) reasonable overhead costs associated with the maintenance of a temporary office in Austin, Texas. Reimbursements shall
be subject to such reasonable substantiation and documentation as the Company may specify from time to time. 
 (g)
Temporary Living. The Company will pay for all expenses incurred by the Executive in Tulsa, Oklahoma including the cost of a corporate apartment, a rental car, and other reasonable expenses. 
 (h) Executive Investments. The Executive will receive the right to purchase up to $1 million of preferred stock in the Company on
the same price and terms as the Bain Capital entities, the Insight Venture Partner entities, SolarWinds Management LLC, and Yonce Management LLC (collectively, the “Preferred Stockholders”) received in connection with the December 2005
leveraged capitalization of the Company, and as documented in a Stockholders’ Agreement dated December 14, 2005. The Executive may exercise this right immediately upon commencing employment, and this right will expire five (5) days
after the effective date of the Executive’s employment with the Company unless exercised prior to that time. Executive’s 

 
shares of preferred stock purchased within five days of the Executive’s hire date may be repurchased by the Company at the same price as that paid by
Executive, if Executive’s employment terminates for any reason within six (6) months of the effective date of purchase. 
 3.
Confidential Information and Restricted Activities. 
 (a) Confidential Information. During the course of the
Executive’s employment with the Company, the Executive will learn of Confidential Information, as defined below, and the Executive may develop Confidential Information on behalf of the Company. The Executive agrees that he will not use or
disclose to any Person (except as required by applicable law or for the proper performance of the Executive’s regular duties and responsibilities for the Company) any Confidential Information obtained by the Executive incident to the
Executive’s employment or any other association with the Company or any of its subsidiaries. The Executive understands that this restriction shall continue to apply after the Executive’s employment terminates, regardless of the reason for
such termination. 
 (b) Protection of Documents. All material documents, records, software and files, in any media of
whatever kind and description, relating to the business of the Company and its subsidiaries, and any copies, in whole or in part, thereof (the “Documents”), whether or not prepared by the Executive shall be the sole and exclusive property
of the Company. The Executive agrees to safeguard all Documents and to surrender to the Company, at the time the Executive’s employment terminates or at such earlier time or times as the Board or its designee may specify, all Documents then in
the Executive’s possession or control. 
 (c) Non-Competition. The Executive acknowledge that in his employment
with the Company the Executive will have access to Confidential Information which, if disclosed, would assist in competition against the Company and that the Executive will also generate goodwill for the Company in the course of the Executive’s
employment. Therefore, the Executive agrees that the following restrictions on the Executive’s activities during and after the Executive’s employment are necessary to protect the goodwill, Confidential Information and other legitimate
interests of the Company: 
 (i) While the Executive is employed by the Company the Executive shall not, directly or
indirectly, whether as owner, partner, investor, consultant, agent, employee, co-venturer or otherwise (collectively, a “Competitive Role”), actively compete with the Company or any of its subsidiaries or undertake any planning for any
business that is Competitive (as defined below) with the Company or its subsidiaries; provided however, that the Executive may continue his role with the companies listed in Section 1(b), and may be a limited partner in certain
investment partnerships that have currently Competitive investments, and that such partnerships may consider future Competitive investments provided that the Executive agrees not to take on a Competitive Role during the Non-Competition Period.
“Competitive” means any business actively engaged in the development of network management software. 
 (ii) The
Executive agrees that during the Non-Competition Period, and during the twelve (12) months immediately following the voluntary termination of the Executive’s employment or during six (6) months following an involuntary termination of
the Executive’s employment, the Executive will not, directly or through any other Person, (A) hire 

 
any employee of the Company or any of its subsidiaries or seek to persuade any employee of the Company or any of its subsidiaries to discontinue employment,
(B) solicit or encourage any customer of the Company or any of its subsidiaries or independent contractor providing services to the Company or any of its subsidiaries to terminate or diminish its relationship with them or (C) seek to
persuade any customer or active prospective customer of the Company or any of its subsidiaries to conduct with anyone else any business or activity that such customer or prospective customer conducts or could reasonably be expected to conduct with
the Company or any of its subsidiaries at that time. 
 (d) In signing this Agreement, the Executive gives the Company
assurance that the Executive has carefully read and considered all the terms and conditions of this Agreement, including the restraints imposed on the Executive under this Section 3. The Executive agrees without reservation that these
restraints are necessary for the reasonable and proper protection of the Company and its subsidiaries and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area. The Executive further
agrees that, were the Executive to breach any of the covenants contained in this Section 3, the damage to the Company and its subsidiaries would be irreparable. The Executive agrees that the Company, in addition to any other remedies available
to it, shall be entitled to apply for injunctive relief in a court of appropriate jurisdiction. The Executive and the Company further agree that, in the event that any provision of this Section 3 is determined by any court of competent
jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too great a range of activities, the court may modify and enforce the covenant to the extent it believes to be reasonable under
the circumstances. It is also agreed that each of the Company’s subsidiaries shall have the right to enforce all of the Executive’s obligations to that subsidiary under this Agreement, including without limitation pursuant to this
Section 3. 
 4. Termination of Employment. The Executive’s employment under this Agreement shall continue until terminated
pursuant to this Section 4. 
 (a) The Company may terminate the Executive’s employment for Cause with at least
thirty (30) days advance written notice to the Executive setting forth in reasonable detail the nature of the Cause. For purposes of this Agreement, “Cause” means any of the following: (i) the Executive’s continued
substantial violations of his employment duties or willful disregard of reasonable directives from the Board; after Executive has received a written demand for performance from the Board that sets forth the factual basis for the Company’s
belief that Executive has not substantially performed his duties or willfully disregarded directives from the Board; (ii) the Executive’s moral turpitude, dishonesty or gross misconduct in the performance of his duties or which has
materially and demonstrably injured the finances or future business of the Company or any of its subsidiaries as a whole; (iii) the Executive’s material breach of this Agreement; or, (iv) the Executive’s conviction of, or
confession or plea of no contest to, any felony or any other act of fraud, misappropriation, embezzlement, or the like involving the Company’s property; provided, however, that no such act or event described in clauses (i) and
(iii) of this paragraph (a) shall constitute Cause hereunder if the Executive has fully cured such act or event during the applicable thirty (30) day notice period. 

 (b) The Executive may terminate his employment for Good Reason with at least thirty
(30) days advance written notice to the Company setting forth in reasonable detail the nature of the Good Reason. For purposes of this Agreement, “Good Reason” means implementation of any of the following directives by the
Board without Executive’s prior written consent: (i) the assignment to the Executive of duties materially inconsistent with the Executive’s status as the Chief Financial Officer or a materially adverse alteration in the nature of the
Executive’s duties and/or responsibilities, reporting obligations or authority with respect to the Company; (ii) the removal of the Executive from the Board; (iii) the failure by the Company to provide directors and officers liability
covering Executive; and/or (iv) the failure of the Company to set up a corporate office as described in Section 1(c) within ninety (90) days of the Effective Date; provided, however, that no act or event under (i) –
(iii) shall constitute Good Reason hereunder if the Company has fully cured such act or event during the applicable thirty (30) day notice period. 
 (c) This Agreement shall automatically terminate in the event of Executive’s death during employment. In the event the Executive
becomes disabled during employment and, as a result, is unable to continue to perform substantially all of his duties and responsibilities under this Agreement for a consecutive period of twelve (12) weeks, the Company will continue to pay the
Executive his Base Salary and to provide the Executive benefits in accordance with Section 2(c) above during such period. If the Executive is unable to return to work after twelve (12) weeks of disability, the Company may terminate the
Executive’s employment, upon notice to the Executive. Upon termination of Executive’s employment as a result of Executive’s death or disability, Executive shall be entitled to additional vesting with respect to any stock options of
the Company held by Executive for a period of twelve (12) months from the date of such termination to be effected through the acceleration of the vesting of such shares effective as of the date of termination. If any question shall arise as to
whether the Executive is disabled to the extent that the Executive is unable to perform substantially all of his duties and responsibilities for the Company, the Executive shall, at the Company’s request, and at the Company’s expense,
submit to a medical examination by a physician selected by the Company to whom the Executive or the Executive’s guardian, if any, has no reasonable objection to determine whether the Executive is so disabled and such determination shall for the
purposes of this Agreement be conclusive of the issue. If such a question arises and the Executive fails to submit to the requested medical examination, the Company’s determination of the issue shall be binding on the Executive. 
 5. Severance Payments and Other Matters Related to Termination. 
 (a) In the event of termination of the Executive’s employment by the Company other than for Cause or the Executive’s termination
of employment for Good Reason, (i) the Executive shall be entitled to receive a lump sum cash severance amount equal to fifty (50%) percent of Executive’s then current annual salary (the “Severance Payments”),
(ii) any earned but unpaid bonus payment, (iii) reimbursement of the health and dental care continuation premiums for Executive and his dependents incurred by Executive to effect continuation of health and dental insurance coverage for
Executive and his dependents on the same basis as active employees, for a period of twelve (12) months from the date of such termination, to the extent that Executive is eligible for and elects continuation coverage under COBRA; and
(iv) any accrued and unused vacation pay payable within twenty one (21) calendar days of the 

 
termination date (subject to required withholding). Any obligation of the Company to provide the Executive severance payments under this Section 5(a) is
conditioned, however, upon the Executive signing a release of claims in the form provided by the Company and reasonably acceptable to Executive within twenty-one (21) days of the date on which the Executive gives or receives, as applicable,
notice of termination of employment and upon the Executive’s not revoking the Employee Release thereafter. The Employee Release will also include a mutual release by the Company of any claims against the Executive. 
 (b) In the event of termination of the Executive’s employment by the Company for Cause or the Executive’s unilateral termination
other than for Good Reason, the Company will pay the Executive any Base Salary earned but not paid through the date of termination, any earned but unpaid bonus, and pay for any vacation time accrued but not used to that date. The Company shall have
no obligation to the Executive for bonus or severance payments, which shall be the sole remedy of the Company in the event of such termination. 
 (c) Except for any right the Executive may have under the federal law known as “COBRA” to continue participation in the Company’s group health and dental plans, and subject to Section 5(a)(iii)
above, benefits shall terminate in accordance with the terms of the applicable benefit plans based on the date of termination of the Executive’s employment, without regard to any continuation of base salary or other payment to the Executive
following termination. 
 (d) Provisions of this Agreement shall survive any termination if so provided in this Agreement or
if necessary to accomplish the purposes of other surviving provisions, including without limitation the Executive’s obligations under Section 3 of this Agreement, with the exception of Section 3(c)(i), which obligations do not survive
termination. The obligation of the Company to make payments to the Executive under this Section 5 is expressly conditioned upon the Executive’s continued full performance of the obligations under Section 3 hereof that survive the
termination of Executive’s employment. Upon termination by either the Executive or the Company, all rights, duties and obligations of the Executive and the Company to each other shall cease, except as otherwise expressly provided in this
Agreement. 
 (e) Section 409A. Notwithstanding anything to the contrary in this Agreement, any cash severance payments
otherwise due to the Executive pursuant to Sections 5(a) or 6 or otherwise on or within the six-month period following the Executive’s termination will accrue during such six-month period and will become payable in a lump sum payment, with
interest at the prime rate, on the date six (6) months and one (1) day following the date of termination, provided, that such cash severance payments will be paid earlier, at the times and on the terms set forth in the applicable
provisions of Sections 5(a) or 6, if the Company and the Executive mutually determine that the imposition of additional tax under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), will not apply to an
earlier payment of such cash severance payments. In addition, this Agreement will be deemed amended to the extent necessary to avoid imposition of any additional tax or income recognition prior to actual payment to the Executive under Code
Section 409A and any temporary or final Treasury Regulations and guidance promulgated thereunder and the parties agree to cooperate with each other and to take reasonably necessary steps in this regard. 

 6. Change of Control Benefits. Change of Control shall be defined as a transaction or series of
transactions where the shareholders of the Company immediately preceding such transaction own, following such transaction, less than 50% of the voting securities of the Company. Provided however, that a firmly underwritten public offering of
the Common Stock shall not be deemed a Change of Control. If Executive is terminated without Cause or resigns for Good Reason upon or during the twelve (12) month period after the effective date of a Change of Control, the Executive shall
automatically become fully vested in all of his then-outstanding equity awards, any accrued but unpaid salary, vacation or bonus payment, and the Executive shall be entitled to receive the consideration set forth in section 5(a) hereof and shall be
entitled to receive an additional cash severance amount equal to $350,000. 
 7. Indemnification and Insurance. 
 (a) The Company agrees that (i) if the Executive is made a party, or is threatened to be made a party to any proceeding by reason of
the fact that he is or was a director, officer, employee, agent, manager, consultant or representative of the Company or any of its Affiliates, or (ii) if any claim is made, or is threatened to be made, that arises out of or relates the
Executive’s service in any of the foregoing capacities, then the Executive shall be indemnified and held harmless by the Company to the fullest extent legally permitted, or authorized, by the certificate of incorporation, bylaws, other
organizational documents, or Board resolutions of the Company, against any and all costs, expenses, liabilities and losses (including, without limitation, judgments, interest, expenses of investigation, penalties, fines, ERISA excise taxes or
penalties, reasonable attorneys’ fees, and amounts paid or to be paid in settlement) incurred or suffered by the Executive in connection herewith and such indemnification shall continue as to the Executive even if he has ceased to be a
director, officer, member, employee, agent, manager, consultant or representative of the Company and shall inure to the benefit of the Executive’s heirs, executors, administrators and legal representatives. No amendment of the Company’s
certificates of incorporation or bylaws shall be effective to reduce any of the Executive’s rights to indemnification, or advancement of costs and expenses, under this Section 6. 
 (b) During the term of employment and for a period of six years thereafter, a directors and officers’ liability insurance policy (or
policies) shall be kept in place providing comprehensive coverage to the Executive to the extent that such coverage is then provided by the Company for any other present or former senior executive or director with respect to such senior
executive’s or director’s service as such. 
 8. Definitions. For purposes of this Agreement, the following definitions
apply: 
 “Affiliates” means all persons and entities directly or indirectly controlling, controlled by or under
common control with the Company, where control may be by management authority, equity interest or otherwise. 
 “Confidential Information” means matters relating to the financial condition, results of operations, business, properties, assets, liabilities or future prospects of the Company and its subsidiaries. Confidential Information does
not include information that enters the public domain, other than through the Executive’s breach of the Executive’s obligations under this Agreement. 

 “Person” means an individual, a corporation, a limited liability company, an
association, a partnership, an estate, a trust or any other entity or organization, other than the Company or any of its Affiliates. 
 9.
Conflicting Agreements. The Executive hereby represents and warrants that the Executive’s signing of this Agreement and the performance of the Executive’s obligations under it will not breach or be in conflict with any other
agreement to which the Executive is a party or are bound and that the Executive is not now subject to any covenants against competition or similar covenants or any court order that could affect the performance of the Executive’s obligations
under this Agreement. 
 10. Withholding. All payments made by the Company under this Agreement shall be reduced by any tax or other
amounts required to be withheld by the Company under applicable law. 
 11. Assignment. Neither the Executive nor the Company may make
any assignment of this Agreement or any interest in it, by operation of law or otherwise, without the prior written consent of the other. This Agreement shall inure to the benefit of and be binding upon the Executive and the Company, and each of our
respective successors, executors, administrators, heirs and permitted assigns. 
 12. Severability. If any portion or provision of
this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is
so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 
 13. Miscellaneous. This Agreement sets forth the entire agreement between the Executive and the Company and replaces all prior and contemporaneous
communications, agreements and understandings, written or oral, with respect to the terms and conditions of the Executive’s employment. This Agreement may not be modified or amended, and no breach shall be deemed to be waived, unless agreed to
in writing by the Executive and an expressly authorized representative of the Board. The headings and captions in this Agreement are for convenience only and in no way define or describe the scope or content of any provision of this Agreement. This
Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument. 
 14. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the state of Oklahoma, without regard to the conflict of laws principles thereof. 
 15. Notices. Any notices provided for in this Agreement shall be in writing and shall be effective when delivered in person or deposited in the
United States mail, postage prepaid, and addressed to the Company at its principal place of business, attention of the Chief Executive Officer, with copy to the Board, or in the case of the Executive, at the Executive’s last known 

 
address on the books of the Company (or to such other address as either party may specify by notice to the other actually received), with a copy of such
notice to the Executive delivered to Reece B. Morrel at the following address: 
 Morrel, West, Saffa, Craige & Hicks, Inc.

 3501 South Yale Avenue 
 Tulsa,
Oklahoma 74135 
 Facsimile: (918) 663-1383 
 Attention: Reece B. Morrel, Esq. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the date first written above. 
  

					
	SOLARWINDS.NET, INC.
		
	By:	 	/S/    DON YONCE
		 	Name:	 	Don Yonce
		 	Title:	 	Founder and Chief Architect
	
	/S/    MICHAEL BENNETT
	MICHAEL BENNETT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]