Exhibit 4.01



 



Exhibit 4.01


INTUIT INC.

 

2002 EQUITY INCENTIVE PLAN

 

As Adopted by the Board on October 24, 2001

And Amended by the Board on November 26, 20011

and Approved by Stockholders on January 18, 2002


     1. PURPOSE. The purpose of the Plan is to provide incentives to attract,
retain and motivate eligible persons whose present and potential contributions
are important to the success of the Company its Parent or Subsidiaries by
offering them an opportunity to participate in the Company’s future performance
through awards of Options, Restricted Stock and Stock Bonuses. Capitalized
terms not defined in the text are defined in Section 23.



     2. SHARES SUBJECT TO THE PLAN.



          2.1 Number of Shares Available. Subject to Sections 2.2 and 18, the
following number of Shares are available for grant and issuance under the Plan:
(a) 8,000,000 Shares, plus (b) the additional number of shares resulting from
(i) any authorized shares not issued or subject to outstanding grants under the
Company’s 1993 Equity Incentive Plan (the “Prior Plan”) on the Effective Date
(as defined in Section 19) and (ii) any shares that are issuable upon exercise
of options granted pursuant to the Prior Plan that, after the Effective Date,
expire or become unexercisable for any reason without having been exercised in
full; plus (c) Shares that are subject to: (i) issuance upon exercise of an
Option but cease to be subject to the Option for any reason other than exercise
of the Option; (ii) an Award that otherwise terminates without Shares being
issued; or (iii) are subject to an Award that is forfeited or are repurchased
by the Company at the original issue price. No more than 10,000,000 shares
shall be issued as ISOs. At all times the Company will reserve and keep
available a sufficient number of Shares to satisfy the requirements of all
outstanding Options granted under the Plan and all other outstanding but
unvested Awards granted under the Plan.



          2.2 Adjustment of Shares. If the number of outstanding Shares is changed
by a stock dividend, recapitalization, stock split, reverse stock split,
subdivision, combination, reclassification or similar change in the capital
structure of the Company, without consideration, then (a) the number of Shares
reserved for issuance under the Plan, (b) the Exercise Prices of and number of
Shares subject to outstanding Options, (c) the number of Shares subject to
other outstanding Awards, (d) the 10,000,000 maximum number of shares that may
be issued as ISOs set forth in Section 2.1; (e) the 2,000,000 and 3,000,000
maximum number of shares that may be issued to an individual in any one
calendar year set forth in Section 3; and (f) the annual 500,000 Share limit on
the aggregate number of Shares that may be: (i) made subject to an Option
granted at an Exercise Price of less than Fair Market Value on the date of
grant, (ii) issued under the Plan as a Stock Bonus; and (iii) issued under the
Plan as a Restricted Stock Award at a Purchase Price of less than Fair Market
Value on the date the Award is made, will be proportionately adjusted, subject
to any required action by the Board or the stockholders of the Company and
compliance with applicable securities laws; provided that fractions of a Share
will not be issued but will either be paid in cash at Fair Market Value, or
will be rounded up to the nearest Share, as determined by the Committee; and
provided further that the Exercise Price of any Option may not be decreased to
below the par value of the Shares.



     3. ELIGIBILITY. ISOs may be granted only to employees (including officers
and directors who are also employees) of the Company or of a Parent or
Subsidiary. All other Awards may be granted to employees, officers, directors,
consultants, independent contractors and advisors of the Company or any Parent
or Subsidiary; provided that such consultants, contractors and advisors render
bona fide services not in connection with the offer and sale of securities in a
capital-raising transaction. The Committee (or its designee under 4.1(c)) will
from time to time determine and designate among the eligible persons who will
be granted one or more Awards under the







	1  	Amended by the Board on
November 26, 2001 solely to reserve 8,000,000 new shares
for grant and issuance under Section 2.1(a) of the Plan.



 

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Plan. A person may be granted more than one Award under the Plan. However, no
person will be eligible to receive more than 2,000,000 Shares in any calendar
year under this Plan pursuant to the grant of Awards hereunder, other than new
employees of the Company or of a Parent or Subsidiary (including new employees
who are also officers and directors of the Company or any Parent or
Subsidiary), who are eligible to receive up to a maximum of 3,000,000 Shares in
the calendar year in which they commence their employment.



     4. ADMINISTRATION.



          4.1 Committee Authority. The Plan shall be administered by the Committee.
Subject to the terms and conditions of the Plan, the Committee will have full
power to implement and carry out the Plan. Without limiting the previous
sentence, the Committee will have the authority to:




	       	(a)	  	construe and interpret the Plan, any Award Agreement and any
other agreement or document executed pursuant to the Plan;
	 
	       	(b)	  	prescribe, amend and rescind rules and regulations relating
to the Plan, including determining the forms and agreements used in
connection with the Plan; provided that the Committee may delegate
to the President, the Chief Financial Officer or the officer in
charge of Human Resources, in consultation with the General Counsel,
the authority to approve revisions to the forms and agreements used
in connection with the Plan that are designed to facilitate Plan
administration, and that are not inconsistent with the Plan or with
any resolutions of the Committee relating to the Plan;
	 
	       	(c)	  	select persons to receive Awards; provided that the Committee
may delegate to one or more executive officers of the Company the
authority to grant an Award under the Plan to Participants who are
not Insiders of the Company;
	 
	       	(d)	  	determine the terms of Awards;
	 
	       	(e)	  	determine the number of Shares or other consideration subject
to Awards;
	 
	       	(f)	  	determine whether Awards will be granted singly, in
combination, or in tandem with, in replacement of, or as
alternatives to, other Awards under the Plan or any other incentive
or compensation plan of the Company or any Parent or Subsidiary;
	 
	       	(g)	  	grant waivers of Plan or Award conditions;
	 
	       	(h)	  	determine the vesting, exercisability, transferability, and payment
of Awards;
	 
	       	(i)	  	correct any defect, supply any omission, or reconcile any
inconsistency in the Plan, any Award or any Award Agreement;
	 
	       	(j)	  	determine whether an Award has been earned;
	 
	       	(k)	  	amend the Plan, except for amendments that increase the
number of Shares available for issuance under the Plan or change the
eligibility criteria for participation in the Plan; or any other
amendments that require approval of the stockholders of the Company;
or
	 
	       	(l)	  	make all other determinations necessary or advisable for the
administration of the Plan.




          4.2 Committee Interpretation and Discretion. Any determination made by
the Committee with respect to any Award shall be made in its sole discretion at
the time of grant of the Award or, unless in contravention of any express term
of the Plan or Award, at any later time, and such determination shall be final
and binding on the Company and all persons having an interest in any Award
under the Plan. Any dispute regarding the interpretation of the Plan or any
Award Agreement shall be submitted by Participant or the Company to the


 

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Committee for review. The resolution of such a dispute by the Committee shall
be final and binding on the Company and Participant.



     5. OPTIONS. The Committee may grant Options to eligible persons and will
determine (a) whether the Options will be ISOs or NQSOs; (b) the number of
Shares subject to the Option, (c) the Exercise Price of the Option, (d) the
period during which the Option may be exercised, and (e) all other terms and
conditions of the Option, subject to the following:



          5.1 Form of Option Grant. Each Option granted under the Plan will be
evidenced by a Stock Option Agreement that will expressly identify the Option
as an ISO or NQSO. The Stock Option Agreement will be substantially in a form
(which need not be the same for each Participant) that the Committee or an
officer of the Company (pursuant to Section 4.1(b)) has from time to time
approved, and will comply with and be subject to the terms and conditions of
the Plan.



          5.2 Date of Grant. The date of grant of an Option will be the date on
which the Committee makes the determination to grant the Option, unless a later
date is otherwise specified by the Committee. The Stock Option Agreement, and
a copy of the Plan and the current Prospectus for the Plan (plus any additional
documents required to be delivered under applicable laws), will be delivered to
the Participant within a reasonable time after the Option is granted. The
Plan, the Prospectus and other documents may delivered in any manner (including
electronic distribution or posting) that meets applicable legal requirements.



          5.3 Exercise Period and Expiration Date. Options will be exercisable
within the times or upon the occurrence of events determined by the Committee
and set forth in the Stock Option Agreement, subject to the provisions of
Section 5.6, and subject to Company policies established by the Committee (or
by individuals to whom the Committee has delegated responsibility) from time to
time with respect to vesting during leaves of absences. The Stock Option
Agreement shall set forth the last date that the option may be exercised (the
“Expiration Date”); provided that no Option will be exercisable after the
expiration of ten years from the date the Option is granted; and provided
further that no ISO granted to a Ten Percent Stockholder will be exercisable
after the expiration of five years from the date the Option is granted. The
Committee also may provide for Options to become exercisable at one time or
from time to time, periodically or otherwise, in such number of Shares or
percentage of Shares subject to the Option as the Committee determines.



          5.4 Exercise Price. The Exercise Price of an Option will be determined by
the Committee when the Option is granted and may be less than Fair Market Value
(but not less than the par value of the Shares); provided that (i) the Exercise
Price of an ISO will not be less than the Fair Market Value of the Shares on
the date of grant and (ii) the Exercise Price of any ISO granted to a Ten
Percent Stockholder will not be less than 110% of the Fair Market Value of the
Shares on the date of grant. Notwithstanding the foregoing, no more than
500,000 Shares annually (less any Shares that have been issued under the Plan
as Stock Bonuses or as Restricted Stock Awards at a price of less than Fair
Market Value on the date of grant) may be made subject to Options granted an
Exercise Price that is less than Fair Market Value on the date of grant.
Payment for the Shares purchased must be made in accordance with Section 8 of
the Plan and the Stock Option Agreement.



          5.5 Procedures for Exercise. A Participant or Authorized Transferee may
exercise Options by following the procedures established by the Company’s Stock
Administration Department, as communicated and made available to Participants
through the stock pages on the Intuit Legal Department intranet web site,
and/or through the Company’s electronic mail system.



          5.6 Termination.



     (a)  Vesting. Any Option granted to a Participant will cease to vest on the
Participant’s Termination Date, if the Participant is Terminated for any reason
other than “total disability” (as defined in this Section 5.6(a)) or death (or
his or her death occurs within three months of Termination). Any Option
granted to a Participant who is an employee who has been actively employed by
the Company or any Subsidiary for one year or more or a director will vest as
to 100% of the Shares subject to such Option, if the Participant is Terminated
due to “total disability” or death (or his or her death occurs within three
months of Termination). For purposes of this Section



 

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5.6(a), “total disability” shall mean: (A) (i) for so long as such definition
is used for purposes of the Company’s group life insurance and accidental death
and dismemberment plan or group long term disability plan, that the Participant
is unable to perform each of the material duties of any gainful occupation for
which the Participant is or becomes reasonably fitted by training, education or
experience and which total disability is in fact preventing the Participant
from engaging in any employment or occupation for wage or profit; or, (ii) if
such definition has changed, such other definition of “total disability” as
determined under the Company’s group life insurance and accidental death and
dismemberment plan or group long term disability plan; and (B) the Company
shall have received from the Participant’s primary physician a certification
that the Participant’s total disability is likely to be permanent. Any Option
granted to an employee who is Terminated by the Company, or any Subsidiary or
Parent within one year following the date of a Corporate Transaction, will
immediately vest as to such number of Shares as the Participant would have been
vested twelve months after the date of Termination had the Participant remained
employed for that twelve month period.



     (b)  Post-Termination Exercise Period. Following a Participant’s
Termination, the Participant’s Option may be exercised to the extent vested as
set forth in Section 5.6(a):




	       	(i)	  	no later than 90 days after the Termination Date
if a Participant is Terminated for any reason except death or
Disability, unless a longer time period, not exceeding five
years, is specifically set forth in the Participant’s Stock
Option Agreement; provided that no Option may be exercised
after the Expiration Date of the Option; or
	 
	       	(ii)	  	no later than (A) twelve months after the
Termination Date in the case of Termination due to Disability
or (B) eighteen months after the Termination Date in the case
of Termination due to death or if a Participant dies within
three months of the Termination Date, unless a longer time
period, not exceeding five years, is specifically set forth in
the Participant’s Stock Option Agreement; provided that no
Option may be exercised after the Expiration Date of the
Option.




          5.7 Limitations on Exercise. The Committee may specify a reasonable
minimum number of Shares that may be purchased on any exercise of an Option;
provided that the minimum number will not prevent a Participant from exercising
an Option for the full number of Shares for which it is then exercisable.



          5.8 Limitations on ISOs. The aggregate Fair Market Value (determined as
of the date of grant) of Shares with respect to which ISOs are exercisable for
the first time by a Participant during any calendar year (under the Plan or
under any other incentive stock option plan of the Company or any Parent or
Subsidiary) shall not exceed $100,000. If the Fair Market Value of Shares on
the date of grant with respect to which ISOs are exercisable for the first time
by a Participant during any calendar year exceeds $100,000, the Options for the
first $100,000 worth of Shares to become exercisable in that calendar year will
be ISOs, and the Options for the Shares with a Fair Market Value in excess of
$100,000 that become exercisable in that calendar year will be NQSOs. If the
Code is amended after the Effective Date of the Plan to provide for a different
limit on the Fair Market Value of Shares permitted to be subject to ISOs, such
different limit shall be automatically incorporated into the Plan and will
apply to any Options granted after the effective date of the amendment.



          5.9 Notice of Disqualifying Dispositions of Shares Acquired on Exercise of
an ISO. If a Participant sells or otherwise disposes of any Shares acquired
pursuant to the exercise of an ISO on or before the later of (1) the date two
years after the Date of Grant, and (2) the date one year after the exercise of
the ISO (in either case, a “Disqualifying Disposition”), the Participant must
immediately notify the Company in writing of such disposition. The Participant
may be subject to income tax withholding by the Company on the compensation
income recognized by the Participant from the Disqualifying Disposition.



          5.10 Modification, Extension or Renewal. The Committee may modify, extend
or renew outstanding Options and authorize the grant of new Options in
substitution therefor; provided that any such action may not, without the
written consent of Participant, impair any of Participant’s rights under any
Option previously granted; and provided, further that without stockholder
approval, the modified, extended, renewed or new Option may not have a lower
Exercise Price than the outstanding Option. Any outstanding ISO that is
modified, extended,


 

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renewed or otherwise altered shall be treated in accordance with Section 424(h)
of the Code. The Committee may reduce the Exercise Price of outstanding
Options without the consent of Participants affected, by a written notice to
them; provided, however, that unless prior stockholder approval is secured, the
Exercise Price may not be reduced below that of the outstanding Option.



          5.11 No Disqualification. Notwithstanding any other provision in the
Plan, no term of the Plan relating to ISOs will be interpreted, amended or
altered, and no discretion or authority granted under the Plan will be
exercised, so as to disqualify the Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code.



     6. RESTRICTED STOCK AWARDS. The Committee may award Restricted Stock
Awards under the Plan to any eligible person. The Committee will determine the
number of Shares subject to the Restricted Stock Award, the Purchase Price, the
restrictions on the Shares and all other terms and conditions of the Restricted
Stock Award, subject to the following:



          6.1 Restricted Stock Purchase Agreement. All purchases under a Restricted
Stock Award will be evidenced by Restricted Stock Purchase Agreement, which
will be in substantially a form (which need not be the same for each
Participant) that the Committee has from time to time approved, and will comply
with and be subject to the terms and conditions of the Plan. A Participant can
accept a Restricted Stock Award only by signing and delivering to the Company a
Restricted Stock Purchase Agreement, and full payment of the Purchase Price,
within thirty days from the date the Restricted Stock Purchase Agreement was
delivered to the Participant. If the Participant does not accept the
Restricted Stock Award in this manner within thirty days, then the offer of the
Restricted Stock Award will terminate, unless the Committee determines
otherwise.



          6.2 Purchase Price. The Purchase Price for a Restricted Stock Award will
be determined by the Committee, and may be less than Fair Market Value (but not
less than the par value of the Shares) on the date the Restricted Stock Award
is granted. Notwithstanding the foregoing, the Committee may not award
Restricted Stock for more than 500,000 Shares annually (less any Shares that
have been made subject to Options granted with an Exercise Price of less than
Fair Market Value on the date of grant or Stock Bonuses) with a Purchase Price
that is less than Fair Market Value on the date of grant. Payment of the
Purchase Price must be made in accordance with Section 8 of the Plan and the
Restricted Stock Purchase Agreement, and in accordance with any procedures
established by the Company’s Stock Administration Department, as communicated
and made available to Participants through the stock pages on the Intuit Legal
Department intranet web site, and/or through the Company’s electronic mail
system.



          6.3 Terms of Restricted Stock Awards. Restricted Stock Awards will be
subject to all restrictions, if any, that the Committee may impose. These
restrictions may be based on completion of a specified number of years of
service with the Company or upon completion of the performance goals as set out
in advance in the Participant’s Restricted Stock Purchase Agreement, which
shall be in substantially in a form (which need not be the same for each
Participant) as the Committee or an officer of the Company (pursuant to Section
4.1(b)) shall from time to time approve, and shall comply with and be subject
to the terms and conditions of the Plan and the Restricted Stock Purchase
Agreement. Prior to the grant of a Restricted Stock Award, the Committee shall:
(a) determine the nature, length and starting date of any Performance Period
for the Restricted Stock Award; (b) select from among the Performance Factors
to be used to measure performance goals, if any; and (c) determine the number
of Shares that may be awarded to the Participant. Prior to the payment for
Shares to be purchased under any Restricted Stock Award, the Committee shall
determine the extent to which such Restricted Stock Award has been earned.
Performance Periods may overlap and a Participant may participate
simultaneously with respect to Restricted Stock Awards that are subject to
different Performance Periods and having different performance goals and other
criteria.



     7. STOCK BONUSES.



          7.1 Awards of Stock Bonuses. The Committee may award Stock Bonuses to any
eligible person. No payment will be required for Shares awarded pursuant to a
Stock Bonus. A Stock Bonus may be awarded for past services already rendered
to the Company, or any Parent or Subsidiary pursuant to a Stock Bonus



 

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Agreement, which shall be in substantially a form (which need not be the same
for each Participant) that the Committee has from time to time approved, and
will comply with and be subject to the terms and conditions of the Plan.
Notwithstanding the foregoing, the Committee may not award Stock Bonuses for
more than 500,000 Shares annually (less any Shares that have been made subject
to Options granted with an Exercise Price of less than Fair Market Value on the
Date of Grant and any Shares that have been issued under the Plan as Restricted
Stock at a Purchase Price of less than Fair Market Value on the date of grant).



          7.2 Terms of Stock Bonuses. Stock Bonuses will be subject to all
restrictions, if any, that the Committee imposes. These restrictions may be
based upon completion of a specified number of years of service with the
Company or upon completion of the performance goals as set out in advance in
the Participant’s Stock Bonus Agreement. The terms of Stock Bonuses may vary
from Participant to Participant and between groups of Participants. Prior to
the grant of a Stock Bonus, the Committee shall: (a) determine the nature,
length and starting date of any Performance Period for the Stock Bonus; (b)
select from among the Performance Factors to be used to measure performance
goals; and (c) determine the number of Shares that may be awarded to the
Participant. Prior to the issuance of any Shares or other payment to a
Participant pursuant to a Stock Bonus, the Committee will determine the extent
to which the Stock Bonus has been earned. Performance Periods may overlap and
a Participant may participate simultaneously with respect to Stock Bonuses that
are subject to different Performance Periods and having different performance
goals and other criteria.



          7.3 Form of Payment to Participant. The Committee will determine whether
a Stock Bonus will be paid to the Participant in the form of cash, whole
Shares, or a combination thereof, based on the Fair Market Value on the date of
payment, and in either a lump sum payment or in installments.



          7.4 Termination During Performance Period. If a Participant is Terminated
during a Performance Period for any reason, then the Participant will be
entitled to payment (whether in Shares, cash or otherwise) with respect to the
Stock Bonus only to the extent earned as of the date of Termination in
accordance with the Stock Bonus Agreement, unless the Committee determines
otherwise.



     8. PAYMENT FOR SHARE PURCHASES.



          8.1 Payment. Payment for Shares purchased pursuant to the Plan may be
made by any of the following methods (or any combination of such methods) that
are described in the applicable Stock Option Agreement or other Award Agreement
and that are permitted by law:




	       	(a)	  	in cash (by check);
	 
	       	(b)	  	in the case of exercise by the Participant, Participant’s
guardian or legal representative or the authorized legal
representative of Participants’ heirs or legatees after
Participant’s death, by cancellation of indebtedness of the Company
to the Participant;
	 
	       	(c)	  	by surrender of Shares that either: (1) were obtained by the
Participant or Authorized Transferee in the public market; or (2) if
the Shares were not obtained in the public market, they have been
owned by the Participant or Authorized Transferee for more than six
months and have been paid for within the meaning of SEC Rule 144
(and, if the Shares were purchased from the Company by use of a
promissory note, the note has been fully paid with respect to the
Shares);
	 
	       	(d)	  	by tender of a full recourse promissory note having such
terms as may be approved by the Committee and bearing interest at a
rate sufficient to avoid imputation of income under Sections 483 and
1274 of the Code; provided, however, that a Participant who is not
an employee of the Company may not purchase Shares with a promissory
note unless the note is adequately secured by collateral other than
the Shares; and provided, further, that the portion of the Purchase
Price or Exercise Price equal to the par value of the Shares must be
paid in cash.




 

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	       	(e)	  	in the case of exercise by the Participant, Participant’s
guardian or legal representative or the authorized legal
representative of Participants’ heirs or legatees after
Participant’s death, by waiver of compensation due or accrued to
Participant for services rendered;
	 
	       	(f)	  	by tender of property; or
	 
	       	(g)	  	with respect only to purchases upon exercise of an Option,
and provided that a public market for the Company’s stock exists:





	              	(1)	  	through a “same day sale” commitment from
Participant or Authorized Transferee and an NASD Dealer
whereby the Participant or Authorized Transferee irrevocably
elects to exercise the Option and to sell a portion of the
Shares purchased in order to pay the Exercise Price, and
whereby the NASD Dealer irrevocably commits upon receipt of
the Shares to forward the Exercise Price directly to the
Company; or
	 
	              	(2)	  	through a “margin” commitment from Participant or
Authorized Transferee and an NASD Dealer whereby Participant
or Authorized Transferee irrevocably elects to exercise the
Option and to pledge the Shares purchased to the NASD Dealer
in a margin account as security for a loan from the NASD
Dealer in the amount of the Exercise Price, and whereby the
NASD Dealer irrevocably commits upon receipt of the Shares to
forward the Exercise Price directly to the Company.




          8.2 Loan Guarantees. The Committee may, in its sole discretion, help a
Participant pay for Shares purchased under the Plan by authorizing a guarantee
by the Company of a third-party loan to the Participant.



          8.3 Issuance of Shares. Upon payment of the applicable Purchase Price or
Exercise Price (or a commitment for payment from the NASD Dealer designated by
the Participant or Authorized Transferee in the case of an exercise by means of
a “same-day sale” or “margin” commitment), and compliance with other conditions
and procedures established by the Company for the purchase of shares, the
Company shall issue the Shares registered in the name of Participant or
Authorized Transferee (or in the name of the NASD Dealer designated by the
Participant or Authorized Transferee in the case of an exercise by means of a
“same-day sale” or “margin” commitment) and shall deliver certificates
representing the Shares (in physical or electronic form, as appropriate). The
Shares may be subject to legends or other restrictions as described in Section
14 of the Plan.



     9. WITHHOLDING TAXES.



          9.1 Withholding Generally. Whenever Shares are to be issued under Awards
granted under the Plan, the Company may require the Participant to pay to the
Company an amount sufficient to satisfy federal, state and local withholding
tax requirements prior to the delivery of any certificate(s) for the Shares.
If a payment in satisfaction of an Award is to be made in cash, the payment
will be net of an amount sufficient to satisfy federal, state, and local
withholding tax requirements.



          9.2 Stock Withholding. When, under applicable tax laws, a Participant
incurs tax liability in connection with the exercise or vesting of any Award
that is subject to tax withholding and the Participant is obligated to pay the
Company the amount required to be withheld, the Committee may, in its sole
discretion, allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be
issued that number of Shares having a Fair Market Value equal to the minimum
amount required to be withheld, determined on the date that the amount of tax
to be withheld is to be determined. All elections by a Participant to have
Shares withheld for this purpose shall be made in writing in a form acceptable
to the Committee.



     10. PRIVILEGES OF STOCK OWNERSHIP. No Participant or Authorized
Transferee will have any rights as a stockholder of the Company with respect to
any Shares until the Shares are issued to the Participant or Authorized
Transferee. After Shares are issued to the Participant or Authorized
Transferee, the Participant or



 

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Authorized Transferee will be a stockholder and have all the rights of a
stockholder with respect to the Shares; provided, however, that if the Shares
are Restricted Stock, any new, additional or different securities the
Participant or Authorized Transferee may become entitled to receive with
respect to the Shares by virtue of a stock dividend, stock split or any other
change in the corporate or capital structure of the Company will be subject to
the same restrictions as the Restricted Stock; provided further, that the
Participant or Authorized Transferee will have no right to retain such
dividends or distributions with respect to Shares that are repurchased at the
Participant’s original Exercise Price or Purchase Price pursuant to Section 14.



     11. TRANSFERABILITY. Except as otherwise provided in this Section 11, no
Award and no interest therein, shall be sold, pledged, assigned, hypothecated,
transferred or disposed of in any manner other than by will or by the laws of
descent and distribution and no Award may be made subject to execution,
attachment or similar process.



          11.1 Awards Other Than NQSOs. All Awards other than NQSO’s shall be
exercisable (a) during a Participant’s lifetime only by Participant or the
Participant’s guardian or legal representative; and (b) after Participant’s
death, by the legal representative of the Participant’s heirs or legatees.



          11.2 NQSOs. During a Participant’s lifetime an NQSO shall be exercisable
by Participant or the Participant’s guardian or legal representative, and with
the permission of the Committee, may be transferred to an Authorized
Transferee.



     12. RESTRICTIONS ON SHARES. At the discretion of the Committee, the
Company may reserve to itself and/or its assignee(s) in the Award Agreement a
right to repurchase all or a portion of a Participant’s Shares that are not
“Vested” (as defined in the Award Agreement), following the Participant’s
Termination, at any time within ninety days after the later of (i) the
Participant’s Termination Date or (ii) the date the Participant purchases
Shares under the Plan, for cash or cancellation of purchase money indebtedness
with respect to Shares, at the Participant’s original Exercise Price or
Purchase Price; provided that upon assignment of the right to repurchase, the
assignee must pay the Company, upon assignment of the right to repurchase, cash
equal to the excess of the Fair Market Value of the Shares over the original
Purchase Price.



     13. CERTIFICATES. All certificates for Shares or other securities
delivered under the Plan (whether in physical or electronic form, as
appropriate) will be subject to stock transfer orders, legends and other
restrictions that the Committee deems necessary or advisable, including without
limitation restrictions under any applicable federal, state or foreign
securities law, or any rules, regulations and other requirements of the SEC or
any stock exchange or automated quotation system on which the Shares may be
listed.



     14. ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a
Participant’s Shares, the Committee may require the Participant to deposit all
certificates representing Shares, together with stock powers or other transfer
instruments approved by the Committee, appropriately endorsed in blank, with
the Company or an agent designated by the Company, to hold in escrow until such
restrictions have lapsed or terminated, and the Committee may cause a legend or
legends referencing such restrictions to be placed on the certificates. Any
Participant who is permitted to execute a promissory note as partial or full
consideration for the purchase of Shares under the Plan will be required to
pledge and deposit with the Company all or part of the Shares purchased as
collateral to secure the payment of the Participant’s obligation to the Company
under the promissory note; provided, however, that the Committee may require or
accept other or additional forms of collateral to secure the payment of such
obligation and, in any event, the Company will have full recourse against the
Participant under the promissory note notwithstanding any pledge of the
Participant’s Shares or other collateral. In connection with any pledge of the
Shares, the Participant will be required to execute and deliver a written
pledge agreement in a form that the Committee has from time to time approved.
The Shares purchased with the promissory note may be released from the pledge
on a pro rata basis as the promissory note is paid.



     15. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Award shall not be
effective unless the Award is in compliance with all applicable state, federal
and foreign securities laws, rules and regulations of any governmental body,
and the requirements of any stock exchange or automated quotation system on
which the Shares may then be listed, as they are in effect on the date of grant
of the Award and also on



 

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the date of exercise or other issuance. Notwithstanding any other provision in
the Plan, the Company shall have no obligation to issue or deliver certificates
for Shares under the Plan prior to (a) obtaining any approvals from
governmental agencies that the Company determines are necessary or advisable,
and/or (b) completion of any registration or other qualification of such shares
under any state, federal or foreign law or ruling of any governmental body that
the Company determines to be necessary or advisable. The Company shall be
under no obligation to register the Shares with the SEC or to effect compliance
with the registration, qualification or listing requirements of any state,
federal or foreign securities laws, stock exchange or automated quotation
system, and the Company shall have no liability for any inability or failure to
do so.



     16. NO OBLIGATION TO EMPLOY. Nothing in the Plan or any Award granted
under the Plan shall confer or be deemed to confer on any Participant any right
to continue in the employ of, or to continue any other relationship with, the
Company or any Parent or Subsidiary or limit in any way the right of the
Company or any Parent or Subsidiary to terminate Participant’s employment or
other relationship at any time, with or without cause.



     17. EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or from
time to time, authorize the Company, with prior stockholder approval and the
consent of the respective Participants, to issue new Awards in exchange for the
surrender and cancellation of any or all outstanding Awards. The Committee may
at any time buy from a Participant an Option previously granted with payment in
cash, Shares or other consideration, based on such terms and conditions as the
Committee and the Participant shall agree.



     18. CORPORATE TRANSACTIONS.



          18.1 Assumption or Replacement of Awards by Successor. In the event of a
Corporate Transaction any or all outstanding Awards may be assumed or replaced
by the successor corporation, which assumption or replacement shall be binding
on all Participants. In the alternative, the successor corporation may
substitute equivalent Awards or provide substantially similar consideration to
Participants as was provided to stockholders (after taking into account the
existing provisions of the Awards). The successor corporation may also issue,
in place of outstanding Shares of the Company held by the Participant,
substantially similar shares or other property subject to repurchase
restrictions no less favorable to the Participant. In the event such successor
corporation, if any, refuses to assume or replace the Awards, as provided
above, pursuant to a Corporate Transaction or if there is no successor
corporation due to a dissolution or liquidation of the Company, such Awards
shall immediately vest as to 100% of the Shares subject thereto at such time
and on such conditions as the Board shall determine and the Awards shall expire
at the closing of the transaction or at the time of dissolution or liquidation.



          18.2 Other Treatment of Awards. Subject to any greater rights granted to
Participants under Section 18.1, in the event of a Corporate Transaction, any
outstanding Awards shall be treated as provided in the applicable agreement or
plan of merger, consolidation, dissolution, liquidation or sale of assets.



          18.3 Assumption of Awards by the Company. The Company, from time to time,
also may substitute or assume outstanding awards granted by another company,
whether in connection with an acquisition of such other company or otherwise,
by either (a) granting an Award under the Plan in substitution of such other
company’s award, or (b) assuming such award as if it had been granted under the
Plan if the terms of such assumed award could be applied to an Award granted
under the Plan. Such substitution or assumption shall be permissible if the
holder of the substituted or assumed award would have been eligible to be
granted an Award under the Plan if the other company had applied the rules of
the Plan to such grant. In the event the Company assumes an award granted by
another company, the terms and conditions of such award shall remain unchanged
(except that the exercise price and the number and nature of Shares issuable
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code). In the event the Company elects to grant a new
Option rather than assuming an existing option, such new Option may be granted
with a similarly adjusted Exercise Price.



     19. ADOPTION AND STOCKHOLDER APPROVAL. The Plan was adopted by the Board
on October 24, 2002 (the “Adoption Date”). The Plan will become effective when
approved by stockholders of the Company, consistent with applicable laws,
within twelve months after the Adoption Date (the “Effective Date”).



 

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     20. TERM OF PLAN. The Plan will terminate ten years from the Adoption
Date.



     21. AMENDMENT OR TERMINATION OF PLAN. The Board may at any time terminate
or amend the Plan in any respect, including without limitation amendment of any
form of Award Agreement or instrument to be executed pursuant to the Plan. In
addition, pursuant to Section 4.1(k), the Board has delegated to the Committee
the authority to make certain amendments to the Plan. Notwithstanding the
foregoing, neither the Board nor the Committee shall, without the approval of
the stockholders of the Company, amend the Plan in any manner that requires
such stockholder approval pursuant to the Code or the regulations promulgated
thereunder as such provisions apply to ISO plans, or pursuant to the Exchange
Act or any rule promulgated thereunder. In addition, no amendment that is
detrimental to a Participant may be made to any outstanding Award without the
consent of the Participant.



     22. NONEXCLUSIVITY OF THE PLAN; UNFUNDED PLAN. Neither the adoption of
the Plan by the Board, the submission of the Plan to the stockholders of the
Company for approval, nor any provision of the Plan shall be construed as
creating any limitations on the power of the Board to adopt such additional
compensation arrangements as it may deem desirable, including, without
limitation, the granting of stock options and bonuses otherwise than under the
Plan, and such arrangements may be either generally applicable or applicable
only in specific cases. The Plan shall be unfunded. Neither the Company nor
the Board shall be required to segregate any assets that may at any time be
represented by Awards made pursuant to the Plan. Neither the Company, the
Committee, nor the Board shall be deemed to be a trustee of any amounts to be
paid under the Plan.



     23. DEFINITIONS. As used in the Plan, the following terms shall have the
following meanings:




	       	(a)	  	“Authorized Transferee” means the permissible recipient, as
authorized by this Plan and the Committee, of an NQSO that is
transferred during the Participant’s lifetime by the Participant by
gift or domestic relations order. For purposes of this definition a
“permissible recipient” is: (i) a child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law or sister-in-law of the Participant,
including any such person with such relationship to the Participant
by adoption; (ii) any person (other than a tenant or employee)
sharing the Participant’s household; (iii) a trust in which the
persons in (i) or (ii) have more than fifty percent of the
beneficial interest; (iv) a foundation in which the persons in (i)
or (ii) or the Participant control the management of assets; or (v)
any other entity in which the person in (i) or (ii) or the
Participant own more than fifty percent of the voting interest.
	 
	       	(b)	  	“Award” means any award under the Plan, including any Option,
Restricted Stock or Stock Bonus.
	 
	       	(c)	  	“Award Agreement” means, with respect to each Award, the
signed written agreement between the Company and the Participant
setting forth the terms and conditions of the Award.
	 
	       	(d)	  	“Board” means the Board of Directors of the Company.
	 
	       	(e)	  	“Code” means the Internal Revenue Code of 1986, as amended,
and the regulations promulgated thereunder.
	 
	       	(f)	  	“Committee” means the committee appointed by the Board to
administer the Plan, or if no committee is appointed, the Board.
Each member of the Committee shall be (i) a “non-employee director”
for purposes of Section 16 and Rule 16b-3 of the Exchange Act, and
(ii) an “outside director” for purposes of Section 162(m) of the
Code, unless the Board has fewer than two such outside directors.




 

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	       	(g)	  	“Company” means Intuit Inc., a corporation organized under
the laws of the State of Delaware, or any successor corporation.
	 
	       	(h)	  	“Corporate Transaction” means (a) a merger or consolidation
in which the Company is not the surviving corporation (other than a
merger or consolidation with a wholly-owned subsidiary, a
reincorporation of the Company in a different jurisdiction, or other
transaction in which there is no substantial change in the
stockholders of the Company and the Awards granted under the Plan
are assumed or replaced by the successor corporation, which
assumption shall be binding on all Participants), (b) a dissolution
or liquidation of the Company, (c) the sale of substantially all of
the assets of the Company, (d) a merger in which the Company is the
surviving corporation but after which the stockholders of the
Company immediately prior to such merger (other than any stockholder
that merges, or which owns or controls another corporation that
merges, with the Company in such merger) cease to own their shares
or other equity interest in the Company; or (e) any other
transaction which qualifies as a “corporate transaction” under
Section 424(a) of the Code wherein the stockholders of the Company
give up all of their equity interest in the Company (except for the
acquisition, sale or transfer of all or substantially all of the
outstanding shares of the Company).
	 
	       	(i)	  	“Disability” means a disability within the meaning of Section
22(e)(3) of the Code, as determined by the Committee.
	 
	       	(j)	  	“Exchange Act” means the Securities Exchange Act of 1934, as
amended, and the regulations promulgated thereunder.
	 
	       	(k)	  	“Exercise Price” means the price at which a Participant who
holds an Option may purchase the Shares issuable upon exercise of
the Option.
	 
	       	(l)	  	“Fair Market Value” means, as of any date, the value of a
share of the Company’s Common Stock determined as follows:





	              	(1)	  	if such Common Stock is then quoted on the NASDAQ
National Market, its last reported sale price on the NASDAQ
National Market on such date or, if no such reported sale
takes place on such date, the average of the closing bid and
asked prices;
	 
	       	(2)	  	if such Common Stock is publicly traded and is
then listed on a national securities exchange, the last
reported sale price on such date or, if no such reported sale
takes place on such date, the average of the closing bid and
asked prices on the principal national securities exchange on
which the Common Stock is listed or admitted to trading;
	 
	       	(3)	  	if such Common Stock is publicly traded but is
not quoted on the NASDAQ National Market nor listed or
admitted to trading on a national securities exchange, the
average of the closing bid and asked prices on such date, as
reported by The Wall Street Journal, for the over-the-counter
market; or
	 
	       	(4)	  	if none of the foregoing is applicable, by the
Board of Directors in good faith.





	       	(m)	  	“Insider” means an officer or director of the Company or any
other person whose transactions in the Company’s Common Stock are
subject to Section 16 of the Exchange Act.
	 
	       	(n)	  	“ISO” means an Incentive Stock Option within the meaning of the
Code.
	 
	       	(o)	  	“NASD Dealer” means broker-dealer that is a member of the
National Association of Securities Dealers, Inc.




 

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	       	(p)	  	“NQSO” means a nonqualified stock option that does not
qualify as an Incentive Stock Option within the meaning of the Code.
	 
	       	(q)	  	“Option” means an award of an option to purchase Shares
pursuant to Section 5 of the Plan.
	 
	       	(r)	  	“Parent” means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if at the
time of the granting of an Award under the Plan, each of such
corporations other than the Company owns stock possessing 50% or
more of the total combined voting power of all classes of stock in
one of the other corporations in such chain.
	 
	       	(s)	  	“Participant” means a person who receives an Award under the
Plan.
	 
	       	(t)	  	“Performance Award” means an award of Shares, or cash in lieu
of Shares, pursuant to Section 8 of the Plan.
	 
	       	(u)	  	“Performance Factors” means the factors selected by the
Committee from among the following measures to determine whether the
performance goals established by the Committee and applicable to
Awards have been satisfied:





	              	(1)	  	Net revenue and/or net revenue growth;
	 
	       	(2)	  	Earnings before income taxes and amortization
and/or earnings before income taxes and amortization growth;
	 
	       	(3)	  	Operating income and/or operating income growth;
	 
	       	(4)	  	Net income and/or net income growth;
	 
	       	(5)	  	Earnings per share and/or earnings per share
growth;
	 
	       	(6)	  	Total stockholder return and/or total stockholder
return growth;
	 
	       	(7)	  	Return on equity;
	 
	       	(8)	  	Operating cash flow return on income;
	 
	       	(9)	  	Adjusted operating cash flow return on income;
	 
	       	(10)	  	Economic value added; and
	 
	       	(11)	  	Individual business objectives.





	       	(v)	  	“Performance Period” means the period of service determined
by the Committee, not to exceed five years, during which years of
service or performance is to be measured for Restricted Stock Awards
or Stock Bonuses.
	 
	       	(w)	  	“Plan” means this Intuit 2002 Equity Incentive Plan, as amended from
time to time.
	 
	       	(x)	  	“Prospectus” means the prospectus relating to the Plan, as
amended from time to time, that is prepared by the Company and
delivered or made available to Participants pursuant to the
requirements of the Securities Act.
	 
	       	(y)	  	“Purchase Price” means the price to be paid for Shares
acquired under the Plan, other than Shares acquired upon exercise of
an Option.




 

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	       	(z)	  	“Restricted Stock Award” means an award of Shares pursuant to Section
6 of the Plan.
	 
	       	(aa)	  	“SEC” means the Securities and Exchange Commission.
	 
	       	(bb)	  	“Securities Act” means the Securities Act of 1933, as
amended, and the regulations promulgated thereunder.
	 
	       	(cc)	  	“Shares” means shares of the Company’s Common Stock $0.01 par
value, reserved for issuance under the Plan, as adjusted pursuant to
Sections 2 and 19, and any successor security.
	 
	       	(dd)	  	“Stock Bonus” means an award of Shares, or cash in lieu of
Shares, pursuant to Section 7 of the Plan.
	 
	       	(ee)	  	“Subsidiary” means any corporation (other than the Company)
in an unbroken chain of corporations beginning with the Company if,
at the time of granting of the Award, each of the corporations other
than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain.
	 
	       	(ff)	  	“Ten Percent Stockholder” means any person who directly or by
attribution owns more than ten percent of the total combined voting
power of all classes of stock of the Company or any Parent or
Subsidiary.
	 
	       	(gg)	  	“Termination” or “Terminated” means, for purposes of the Plan
with respect to a Participant, that the Participant has ceased to
provide services as an employee, director, consultant, independent
contractor or adviser, to the Company or a Parent or Subsidiary;
provided that a Participant shall not be deemed to be Terminated if
the Participant is on a leave of absence approved by the Committee
or by an officer of the Company designated by the Committee; and
provided further, that during any approved leave of absence, vesting
of Awards shall be suspended or continue in accordance with
guidelines established from time to time by the Committee. Subject
to the foregoing, the Committee shall have sole discretion to
determine whether a Participant has ceased to provide services and
the effective date on which the Participant ceased to provide
services (the “Termination Date”).




 

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