Document:

Exhibit 10.10

		

			Exhibit 10.10

		

		

			 

		

		
			NOTIFICATION OF RESTRICTED STOCK AWARD 
		

		
			UNDER THE FLEXSTEEL INDUSTRIES, INC. OMNIBUS STOCK PLAN
		

		
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						 Name of Grantee:   

				
	
					
						 Restricted Stock Award:   

					
					
						 Grant Date:   

				

		
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			1.Notification of Award.  Flexsteel Industries, Inc. (the “Company”), hereby grants to you (“Employee”) a Restricted Stock Award under this Notification of Award (the “Notification of Award”).  The Restricted Stock Award represents the right to receive shares of common stock of the Company (the “Shares”) under the terms and conditions described in this Notification of Award and in the Company’s 2013 Omnibus Stock Plan (the “Plan”), provided upon request. 
		

		
			2.  Vesting.  The Employee’s rights in and to the number of Shares so indicated shall become vested upon the earliest of the following dates or events to occur:
		

			
	
			
				 a.
			

			
	
			
			On _________, 202_, [#] shares shall vest if the Employee is employed and in good standing with the Company on such date;

			
	
			
				 b.
			

			
	
			
			On _________, 202_, [#] shares shall vest if the Employee is employed and in good standing with the Company on such date;

			
	
			
				 c.
			

			
	
			
			On _________, 202_, [#] shares shall vest if the Employee is employed and in good standing with the Company on such date;

			
	
			
				 d.
			

			
	
			
			On the date of the Employee’s death while employed with the Company all unvested Shares shall vest;

			
	
			
				 e.
			

			
	
			
			On the date the Employee is determined to be disabled under the Company’s long-term disability plan for entitlement to benefits thereunder (“Disability”) all unvested Shares shall vest; 

			
	
			
				 f.
			

			
	
			
			On the date of an Involuntary Termination within 30 days before or 12 months following a Change in Control of the Company (See Attachment A, “Definitions”) all unvested Shares shall vest;

			
	
			
				 g.
			

			
	
			
			[On the date Employee’s employment with the Company is terminated, if termination for other than Cause (See Attachment A, “Definitions”) occurs on or after Employee reaches the age of 62 and is the result of other than death or disability, then Employee shall be entitled to receive a pro rata portion of the Restricted Stock Award, including previously vested shares, based  , on the number of days employed by the Company during the period beginning on the Grant Date and ending June 30, 202__.]

		
			Notwithstanding any earlier vesting as provided above, the Employee shall have no rights in or to the restricted stock or payment under this Notification of Award if the Employee is terminated for Cause (See Attachment A, “Definitions”)
		

		
			3.  Dividends.  During the period prior to vesting (as defined in Section 2 above), dividends will be paid quarterly on the unvested Shares unless such Shares have been forfeited hereunder.  Dividends shall otherwise be considered a part of the Restricted Stock Award. 
		

		
			4.Forfeiture Restriction.  In the event of Employee’s cessation of employment with or service to the Company for any reason, all of the Shares which have not otherwise vested pursuant to the vesting schedule set forth in Section 2 above shall thereupon be forfeited immediately and without any further action by the 
		

		 

 

		Company (the “Forfeiture Restriction”). Upon occurrence of such a forfeiture, the Company shall become the legal and beneficial owner of the unvested Shares and all 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 forfeited by Employee. The unvested Shares and Employee’s executed stock assignment (See Attachment B, “Stock Assignment”) to this Notification of Award shall be held by the Company in accordance with in accordance with Section 6 until the Shares are forfeited as provided in this Section 4, until such unvested Shares are fully released from the Forfeiture Restriction, or until such time as this Notification of Award is no longer in effect. Employee hereby authorizes and directs the Secretary of the Company, or such other person designated by the Company, to transfer the unvested Shares which have been forfeited pursuant to this Section 4 from Employee to the Company. The Company will provide to the Employee a separate Stock Assignment for each certificate of Shares. 
		

		
			5.Release of Shares from Forfeiture Restriction.  The Shares shall be released from the Forfeiture Restriction in accordance with the vesting schedule set forth in Section 2 of this Notification of Award. Any of the Shares which, from time to time, have not yet been released from the Forfeiture Restriction are referred to herein as “Unreleased Shares.” As soon as administratively practicable following the release of any Shares from the Forfeiture Restriction, the Company shall, as applicable, either deliver to the Employee the certificate or certificates representing such Shares in the Company’s possession belonging to the Employee, or, if the Shares are held in book entry form, then the Company shall remove the notations on the book form. The Employee (or the beneficiary or personal representative of the Employee in the event of the Employee’s death or incapacity, as the case may be) shall deliver to the Company any representations or other documents or assurances as the Company or its representatives deem necessary or advisable in connection with any such delivery. 
		

		
			6.Escrow.  The Unreleased Shares and Employee’s executed Stock Assignment shall be held by the Company until the Shares are forfeited as provided in Section 4, until such Unreleased Shares are fully released from the Forfeiture Restriction, or until such time as this Notification of Award no longer is in effect. In such event, Employee shall not retain physical custody of any certificates representing Unreleased Shares issued to Employee. Employee, by acceptance of this Notification of Award, shall be deemed to appoint, and does so appoint, the Company and each of its authorized representatives as Employee’s attorney(s)-in-fact to effect any transfer of forfeited Unreleased Shares to the Company as may be required pursuant to the Plan or this Notification of Award, and to execute such representations or other documents or assurances as the Company or such representatives deem necessary or advisable in connection with any such transfer. The Company, or its designee, shall not 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 an in the exercise of its judgment. 
		

		
			7.  Withholding Taxes.  The Company has the right to deduct and withhold any taxes due as a result of this Restricted Stock Award.  The Company may, in its discretion, elect to withhold cash from other compensation payable to the Employee by the Company or withhold shares otherwise payable to you under this Notification of Award to satisfy applicable federal, state, and local withholding tax requirements with respect to the Restricted Stock Award and dividends.  The Employee agrees to pay to the Company, when due, any amount necessary to satisfy applicable federal, state, and local withholding tax requirements with respect to the Restricted Stock Award and dividends. The Company will process payment of the amount determined under this Section 7 through the Employee’s payroll along with applicable withholding taxes.
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						Restricted Stock Award

					

					

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						Flexsteel Industries, Inc.

					

					

						 

					

					

						 

				

		

			 

		

 

		8.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 any of the Unreleased Shares under this Notification of Award if you have a termination for Cause.  Any repayment due under this Section 8 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.  
		

		
			9.Employment of Employee.  Nothing in this Notification of Award shall be construed as constituting a commitment, guaranty, agreement or understanding of any kind or nature that the Company shall continue to employ the Employee, and this Notification of Award shall not affect in any way the right of the Company or its subsidiaries to terminate the employment of the Employee at any time for any reason.  The Company shall have the right to reduce or recoup amounts due under the Notification of Award, but only to the extent such reduction or recoupment is specifically required by any federal or Minnesota law or regulation with respect to amounts due under this Notification of Award.
		

		
			10.Transferability.  The Employee shall not sell, transfer, pledge, assign or otherwise encumber any of the Restricted Stock Award, whether voluntarily, involuntarily or by operation of law.  Any purported transfer, pledge or encumbrance of such Restricted Stock Award shall be void and unenforceable against the Company, and no purported transferee shall acquire any right or interest with respect to the Restricted Stock Award or the payment therefor as a result.
		

		
			11.Rights of Stockholder.  Except as otherwise provided in the Plan or this Notification of Award, upon issuance of the Shares by the Company, Employee shall have all of the rights of a stockholder with respect to said Shares, subject to the restrictions herein, including the right to vote the Shares and to receive all dividends or other distributions paid or made with respect to the Shares. 
		

		
			12.Legends.  The certificate or certificates representing the Shares, if any, shall bear the following legend (as well as any legends required by applicable state and federal corporate and securities laws):
		

		
			THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO FORFEITURE IN FAVOR OF THE COMPANY AND MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF A RESTRICTED STOCK AWARD AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.
		

		
			13.Governing Law.  This Notification of Award shall be construed and enforced in accordance with the laws of the State of Minnesota, without regard to the principles of rules of any jurisdiction with respect to conflict of laws. 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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		14.Incorporation of Plan.  Except to the extent specifically provided in this Notification of Award, this grant shall be subject to and governed by the terms and conditions of the Plan, which shall be incorporated as though fully set forth herein.  Capitalized terms not otherwise defined in this Notification of Award shall have the meaning set forth 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.  
		

		
			15.Entire Notification of Award; Modification.  This Notification of Award sets forth all of the promises, conditions, understandings, warranties and representations between the parties with respect to the Restricted Stock Award, and there are no promises, agreements, conditions, understandings, warranties or representations, oral or written, express or implied, between the parties with respect to the Restricted Stock Award other than as set forth in this Notification of Award, the Plan and referenced and related attachments to the Plan.  This Notification of Award is, and is intended by the parties to be, an integration of any and all prior agreements or understandings, oral or written, with respect to the Restricted Stock Award.  Except as provided in Section 14, any change in, or modification of, this Agreement shall be valid only if in writing and signed by the parties to this Agreement.
		

		
			16.Notices.  Any and all notices provided for in this Notification of Award shall be addressed: (i) if to the Company, to the principal executive office of the Company to the attention of Secretary, and (ii) if to the Employee, to the address of the Employee as reflected in the records of the Company.  
		

		
			17.Invalid or Unenforceable Provisions.  The invalidity or unenforceability of any particular provisions of this Notification of Award shall not affect the other provisions, and this Notification of Award shall be construed in all respects as if that invalid or unenforceable provision were omitted.
		

		
			18.  Acknowledgment.    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.  
		

		
			IN WITNESS WHEREOF, the Company and the Employee have executed this Notification of Award to be effective as of the Grant Date.
		

		
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						FLEXSTEEL INDUSTRIES, INC. 

					
					
						 

					
					
						EMPLOYEE

				
	
					
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						Jerald K. DittmeBy:  Jerald K. Dittmer

					
					
						 

					
					
						By:

				
	
					
						Its: President & CEIts:  President & CEO

					
					
						 

					
					
						 

				

		
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						Restricted Stock Award

					

					

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			ATTACHMENT A
		

		
			Definitions
		

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

		

		
			“Cause”  means:
		

		
			(i)The willful and continued failure of the Employee to perform substantially the Employee’s duties as established from time to time by the Company’s management (other than any such failure resulting from a Disability), after a written demand for substantial performance is delivered to the Employee by the Company’s management that specifically identifies the manner in which the management believes that the Employee has not substantially performed the Employee’s duties; or
		

		
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			(ii)Dishonesty, fraud, misappropriation of funds, theft relating to the Employee’s position, harassment, an act of violence, acts punishable by law, misconduct as described in the Flexsteel 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.
		

		
			“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. 

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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			“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
		

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

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

		
			(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:
		

			
					
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						(i)

					
					
						Any use or disclosure of Confidential Information except as required for the performance of the Employee's duties as an employee of the Company;

				
	
					
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						(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 the Employee’s duties as an employee of the Company.

				
	
					
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						(iii)

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

				
	
					
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						(A)

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

				
	
					
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						(B)

					
					
						any required disclosure of Confidential Information by law or legal process, if: (x) the Employee provides 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) the Employee cooperates with the Company in any efforts to seek a protective order.

				

		
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			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 the Employee has learned or developed in the past as a result of Employee’s employment by or association with the Company or which the Employee learns or develops 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 the Employee or to which the Employee obtains access in whatever form, whether originated by the Employee or by others, during the period that the Employee provides services to the Company will be presumed to be Confidential Information if it is treated by the Company as being Confidential Information or if the Employee has 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 an Employee; or (ii) that is independently made available to the Employee 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.
		

		
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			ATTACHMENT B
		

		
			STOCK ASSIGNMENT
		

		
			FOR VALUE RECEIVED, the undersigned, ____________________, hereby sells, assigns and transfers unto FLEXSTEEL INDUSTRIES, INC. (the “Company”), a Minnesota corporation, __________ shares of the Company’s common stock, standing in its name of the books of the Company represented by Certificate No. ______ herewith and do hereby irrevocably constitute and appoint ________________________ to transfer the said stock on the books of the Company with full power of substitution on the premises. 
		

		
			This Stock Assignment may be used only in accordance with the Notification of Restricted Stock Award between the Company and the undersigned dated July 1, 2019. 
		

		
			___________________________________
		

		
			INSTRUCTIONS: Please do not fill in the blanks other than the signature line. The purpose of this assignment is to enable the Company to enforce the Forfeiture Restriction as set forth in the Notification of Restricted Stock Award, without requiring additional signatures on the part of the Employee. 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

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						Flexsteel Industries, Inc.Exhibit 10.2

		

			Exhibit 10.2

		

		

			 

		

		
			FLEXSTEEL INDUSTRIES, INC.
		

		
			CASH INCENTIVE  COMPENSATION PLAN
NOTIFICATION OF AWARD
		

		
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			TO:
		

		
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			1.Performance Award.  Flexsteel Industries, Inc., (the “Company”), grants to you an Award under the Flexsteel Industries, Inc. Cash Incentive Compensation Plan (the “Plan”) provided upon request.  
		

		
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						Grant Date:

					
						July 1, 2017 

					
					
						Performance Period:

					
						July 1, 2017 – June 30, 2018

					
					
						Base Salary:

					
						 $XXX

				
	
					
						Target Percentage Participation %:   XX% 

					
					
						Target Cash Value:    $XX

				

		
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			2.Performance Goals.  To be eligible to receive payment under this Award, you must meet the Performance Goals set forth below.   If the threshold goal amount is not reached, no amounts will be paid in any category.
		

		
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						Weighting

					
						%

					
					
						Target Cash Value

					
					
						GOAL(S)

					
					
						Goal Achievement Posts

				
	
					
						Threshold

					
						40%

					
					
						TARGET

					
						100%

					
					
						Outstanding

					
						160%

					
					
						Special

					
						200%

				
	
					
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						100%

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
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			(See attachment for annual goal details.)
		

		
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			3.Calculation of Award.  Following the close of the Performance Period, the Award payable to you will be calculated by the achievement of the Performance Goal(s) against the Target Performance Award to determine your Award payout for the Performance Period. 
		

		
			 
		

		
			4.Employment Requirement. In general, in order to receive an Award payment under this Notification of Award, you must be employed by the Company through the last day of the Performance Period.  However, if your employment is terminated during a Performance Period as a result of your death, disability, on or after reaching age 62, or an Involuntary Termination for reasons other than Cause within 30 days before or 12 months following a Change in Control (See Attachment A, “Definitions”) you (or your beneficiary in the case of your death) will be entitled to receive a pro rata portion of the Award based on the number of days you were employed by the Company during the Performance Period.  
		

		
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			5.Payment of Award.  Your Award for a Performance Period will be paid to you in a cash lump sum after the audited financials for the Performance Period are completed, but no later than the 15th day of the third month following the end of the Performance Period, unless a delay is otherwise permitted under the terms of the Plan.  Under certain circumstances, the payment may be made at an earlier date, as determined by the Committee, as long as the acceleration does not result in a violation of Section 409A or 162(m) of the Code.
		

		
			 
		

		

		

		 

 

		6. Withholding Taxes.  The Company may deduct and withhold from any payment due you under this Notification of Award or any other compensation payable to you by the Company any taxes due as a result of the Award payout. 
		

		
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			7. Beneficiary Designation. If your employment is terminated as a result of death during a Performance Period, an amount may be payable upon your death as provided in Section 4 of this Notification of Award.  The Plan permits each Participant to designate a beneficiary to receive payments that may be due in the event of 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”).
		

		
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			8.Forfeiture and Repayment. If you receive or become entitled to receive a payment under this 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 6.5 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 date of the Award.
		

		
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			9.No Employment Contract.  Nothing contained in the Plan or this Notification of Award creates any right to your continued employment or otherwise affects your status as an employee at will.  You acknowledge that the Company and you each have the right to terminate your employment at any time for any reason or for no reason at all, subject only to the terms of any written employment agreement between you and the Company.
		

		
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			10. Governing Terms.  The Award is subject to the terms of this Notification of Award and the terms of the Plan.  In the event of any conflict between the terms of the Notification of Award and the Plan, the terms of the Plan will govern. Capitalized terms used but not defined in this Notification of Award will have the meanings given to them in the Plan.
		

		
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			11.Acknowledgment. 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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						FLEXSTEEL INDUSTRIES, INC. 

					
					
						 

					
					
						Acknowledgment of Receipt:

					
					
						 

				
	
					
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						Jerald K. DittmeJerald K. Dittmer

					
					
						 

					
					
						Name

					
					
						     Date

				
	
					
						President & CEPresident & CEO

					
					
						 

					
					
						 

					
					
						 

				

		
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			Cash Incentive Compensation Plan Notice of Award

		

		

			 

		

 

		
		

		
			ATTACHMENT A
		

		
			FLEXSTEEL INDUSTRIES, INC.
		

		
			CASH INCENTIVE COMPENSATION PLAN
		

		
			NOTIFICATION OF AWARD DEFINITIONS
		

		
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			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;

		
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				 (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;

		
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				 (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;

		
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				 (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;

		
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				 (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

		
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				 (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  
		

		
			
		

		 

		

			Cash Incentive Compensation Plan Notice of Award

		

		

			 

		

 

		(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 the Participant's 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 the Participant’s 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) the Participant provides 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) the Participant cooperates 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 the Participant has learned or developed in the past as a result of Participant’s employment by or association with the Company or which the Participant learns or develops 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 the Participant or to which the Participant obtains access in whatever form, whether originated by the Participant or by others, during the period that the Participant provides services to the Company will be presumed to be Confidential Information if it is treated by the Company as being Confidential Information or if the Participant has 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 a Participant; or (ii) that is independently made available to the Participant in good faith by a third party who has not violated any legal duty or confidential relationship with the Company.
		

		
			
		

		 

		

			Cash Incentive Compensation Plan Notice of Award

		

		

			 

		

 

		“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 Section 8 of this Notification of Award.
		

		
			
		

		 

		

			Cash Incentive Compensation Plan Notice of Award

		

		

			 

		

 

		ATTACHMENT B
		

		
			FLEXSTEEL INDUSTRIES, INC.
		

		
			CASH INCENTIVE COMPENSATION PLAN
		

		
			BENEFICIARY DESIGNATION OF EMPLOYEE
		

		
			﻿
		

		
			Under the Flexsteel Industries, Inc. Cash Incentive Compensation Plan, I, «First_Name» «Last_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:  ___________________________________

		
			﻿
		

		
			Signature:  ________________________________
		

		
			Name:   «First_Name» «Last_Name»
		

		
			Date:  ____________________________________
		

		
			﻿
		

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

		
			﻿
		

		 

		

			Cash Incentive Compensation Plan Notice of Award

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