EX-10.3





 Exhibit 10.3 

INCENTIVE STOCK OPTION AGREEMENT 

PURSUANT TO THE 
 PAYCOR
HCM, INC. 2021 OMNIBUS INCENTIVE PLAN 
 * * * * * 

Participant: [•] 
 Grant Date: [•] 

Per Share Exercise Price: $[•] 
 Number of Shares
subject to this Option: [•] 
 * * * * * 

THIS INCENTIVE STOCK OPTION AWARD AGREEMENT (this “Agreement”), dated as of the Grant Date specified above, is entered into
by and between Paycor HCM, Inc., a corporation organized in the State of Delaware (the “Company”), and the Participant specified above, pursuant to the Paycor HCM, Inc. 2021 Omnibus Incentive Plan, as in effect and as amended from
time to time (the “Plan”), which is administered by the Committee; and 
 WHEREAS, it has been determined under the Plan
that it would be in the best interests of the Company to grant the Incentive Stock Option provided for herein to the Participant. 
 NOW,
THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth and for other good and valuable consideration, the parties hereto hereby mutually covenant and agree as follows: 

1. Incorporation By Reference; Plan Document Receipt. This Agreement is subject in all respects to the terms and provisions of the Plan
(including, without limitation, any amendments thereto adopted at any time and from time to time unless such amendments are expressly intended not to apply to the Award provided hereunder), all of which terms and provisions are made a part of and
incorporated in this Agreement as if they were each expressly set forth herein. Any capitalized term not defined in this Agreement will have the same meaning as is ascribed thereto in the Plan. The Participant hereby acknowledges receipt of a true
copy of the Plan and that the Participant has read the Plan carefully and fully understands its content. In the event of any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan will control. 

2. Grant of Option. The Company hereby grants to the Participant, as of the Grant Date specified above, an Incentive Stock Option (this
“Option”) to acquire from the Company at the Per Share Exercise Price specified above, the aggregate number of shares of Common Stock specified above (the “Option Shares”). Except as otherwise provided by the Plan,
the Participant agrees and understands that nothing contained in this Agreement provides, or is intended to provide, the Participant with any protection against potential future dilution of the Participant’s interest in the Company for any
reason. The Participant will have no rights as a stockholder with respect to any shares of Common Stock covered by the Option unless and until the Participant has become the holder of record of such shares, and no adjustments will be made for
dividends in cash or other property, distributions or other rights in respect of any such shares, except as otherwise specifically provided for in the Plan or this Agreement. 












 3. Tax Matters. The Option granted hereunder is intended to qualify as an
“incentive stock option” under Section 422 of the Code. Notwithstanding the foregoing, the Option will not qualify as an “incentive stock option,” among other events: (a) if the Participant disposes of the Option Shares
at any time during the two-year period following the date of this Agreement or the one-year period following the date of any exercise of the Option; (b) except in
the event of the Participant’s death or Disability, if the Participant is not employed by the Company, a Parent or a Subsidiary at all times during the period beginning on the date of this Agreement and ending on the day that is three months
before the date of any exercise of the Option; or (c) to the extent that the aggregate fair market value of the Common Stock subject to “incentive stock options” held by the Participant which become exercisable for the first time in
any calendar year (under all plans of the Company, a Parent or a Subsidiary) exceeds $100,000. For purposes of clause (c) above, the “fair market value” of the Common Stock will be determined as of the Grant Date. To the extent that
the Option does not qualify as an “incentive stock option,” it will not affect the validity of the Option and will constitute a separate non-qualified stock option. In the event that the Participant
disposes of the Option Shares within either two years following the Grant Date or one year following the date of exercise of the Option, the Participant must deliver to the Company, within seven days following such disposition, a written notice
specifying the date on which such shares were disposed of, the number of shares so disposed, and, if such disposition was by a sale or exchange, the amount of consideration received. The Company will have no liability or responsibility if the Option
ceases to be an incentive stock option for any reason. 
 4. Vesting and Exercise. 

(a) Vesting. Subject to the provisions of Sections 4(b) and 4(c) hereof, the Option will vest and become exercisable as
follows; provided that, the Participant has not incurred a Termination prior to each such vesting date: 
  

			
	 Vesting Date
	  	Number of Shares
	[•]	  	[•]
	[•]	  	[•]
	[•]	  	[•]
	[•]	  	[•]

 There will be no proportionate or partial vesting in the periods prior to each vesting date and all vesting
will occur only on the appropriate vesting date, subject to the Participant’s continued service with the Company or any of its Subsidiaries on each applicable vesting date. Upon expiration of the Option, the Option will be cancelled and no
longer exercisable. 
 (b) Committee Discretion to Accelerate Vesting. Notwithstanding the foregoing, the Committee may, in its sole
discretion, provide for accelerated vesting of the Option at any time and for any reason; provided that, the Option will immediately accelerate and become fully vested if the Participant experiences a Termination that is the result of a
termination by the Company or any of its Subsidiaries for reasons other than Cause (and not due to death or Disability) at any time on or following a Change in Control. 

(c) Expiration. Unless earlier terminated in accordance with the terms and provisions of the Plan and/or this Agreement, all portions
of the Option (whether vested or not vested) will expire and will no longer be exercisable after the expiration of ten years from the Grant Date. 

5. Termination. Subject to the terms of the Plan and this Agreement, the Option, to the extent vested at the time of the
Participant’s Termination, will remain exercisable as follows: 

  
 2 













 (a) Termination due to Death or Disability. In the event of the Participant’s
Termination by reason of death or Disability, the vested portion of the Option will remain exercisable until the earlier of (i) one year from the date of such Termination, and (ii) the expiration of the stated term of the Option pursuant
to Section 4(c) hereof. 
 (b) Involuntary Termination Without Cause. In the event of the
Participant’s involuntary Termination by the Company without Cause, the vested portion of the Option will remain exercisable until the earlier of (i) 90 days from the date of such Termination, and (ii) the expiration of the stated term of
the Option pursuant to Section 4(c) hereof. 
 (c) Voluntary Resignation. In the event of the
Participant’s voluntary Termination (other than a voluntary Termination described in Section 5(d) hereof), the vested portion of the Option will remain exercisable until the earlier of (i) 30 days from the date of such
Termination, and (ii) the expiration of the stated term of the Option pursuant to Section 4(c) hereof. 
 (d)
Termination for Cause. In the event of the Participant’s Termination for Cause or in the event of the Participant’s voluntary Termination (as provided in Section 5(c) hereof) after an event that would be
grounds for a Termination for Cause, the Participant’s entire Option (whether or not vested) will terminate and expire upon such Termination. 

(e) Treatment of Unvested Options upon Termination. Any portion of the Option that is not vested as of the date of the
Participant’s Termination for any reason will terminate and expire as of the date of such Termination. 
 6. Method of Exercise and
Payment. Subject to Section 9 hereof, to the extent that the Option has become vested and exercisable with respect to a number of shares of Common Stock as provided herein, the Option may thereafter be exercised by the
Participant, in whole or in part, at any time or from time to time prior to the expiration of the Option as provided herein and in accordance with Sections 6.4(c) and 6.4(d) of the Plan, including, without limitation, by the filing of any written
form of exercise notice as may be required by the Committee and payment in full of the Per Share Exercise Price specified above multiplied by the number of shares of Common Stock underlying the portion of the Option exercised. The Participant
acknowledges and agrees to notify the Company in writing if he or she sells any shares of Common Stock acquired pursuant to such exercise within one year of any such sale. 

7. Non-Transferability. The Option, and any rights and interests with respect thereto, issued
under this Agreement and the Plan will not be sold, exchanged, transferred, assigned or otherwise disposed of in any way by the Participant (or any beneficiary(ies) of the Participant), other than by testamentary disposition by the Participant or
the laws of descent and distribution. Any attempt to sell, exchange, transfer, assign, pledge, encumber or otherwise dispose of or hypothecate in any way the Option, or the levy of any execution, attachment or similar legal process upon the Option,
contrary to the terms and provisions of this Agreement and/or the Plan will be null and void and without legal force or effect. 
 8.
Governing Law. All questions concerning the construction, validity and interpretation of this Agreement will be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to the choice of law principles
thereof. 
 9. Withholding of Tax. The Company will have the power and the right to deduct or withhold, or require the Participant to
remit to the Company, an amount sufficient to satisfy any federal, state, local and foreign taxes of any kind (including, but not limited to, the Participant’s FICA and SDI obligations) which the Company, in its sole discretion, deems necessary
to be withheld or remitted to comply with the Code and/or any other applicable law, rule or regulation with respect to the Option and, if the Participant 

  
 3 













 
fails to do so, the Company may otherwise refuse to issue or transfer any shares of Common Stock otherwise required to be issued pursuant to this Agreement. Any minimum statutorily required
withholding obligation with regard to the Participant or any additional tax obligation with regard to the Participant that does not result in any adverse accounting implications to the Company may, with the consent of the Committee, be satisfied by
reducing the amount of cash or shares of Common Stock otherwise deliverable upon exercise of the Option. 
 10. Entire Agreement;
Amendment. This Agreement, together with the Plan, contains the entire agreement between the parties hereto with respect to the subject matter contained herein, and supersedes all prior agreements or prior understandings, whether written or
oral, between the parties relating to such subject matter. The Committee will have the right, in its sole discretion, to modify or amend this Agreement from time to time in accordance with and as provided in the Plan. This Agreement may also be
modified or amended by a writing signed by both the Company and the Participant. The Company will give written notice to the Participant of any such modification or amendment of this Agreement as soon as practicable after the adoption thereof. 

11. Notices. Any notice hereunder by the Participant will be given to the Company in writing and such notice will be deemed duly given
only upon receipt thereof by the General Counsel of the Company. Any notice hereunder by the Company will be given to the Participant in writing and such notice will be deemed duly given only upon receipt thereof at such address as the Participant
may have on file with the Company. 
 12. No Right to Employment. Any questions as to whether and when there has been a Termination
and the cause of such Termination will be determined in the sole discretion of the Committee. Nothing in this Agreement will interfere with or limit in any way the right of the Company, its Subsidiaries or its Affiliates to terminate the
Participant’s employment or service at any time, for any reason and with or without cause. 
 13. Transfer of Personal Data. The
Participant authorizes, agrees and unambiguously consents to the transmission by the Company (or any Subsidiary) of any personal data information related to the Option awarded under this Agreement for legitimate business purposes (including, without
limitation, the administration of the Plan). This authorization and consent is freely given by the Participant. 
 14. Compliance with
Laws. The issuance of the Option (and the Option Shares upon exercise of the Option) pursuant to this Agreement will be subject to, and will comply with, any applicable requirements of any foreign and U.S. federal and state securities laws,
rules and regulations (including, without limitation, the provisions of the Securities Act, the Exchange Act and in each case any respective rules and regulations promulgated thereunder) and any other law or regulation applicable thereto. The
Company will not be obligated to issue the Option or any of the Option Shares pursuant to this Agreement if any such issuance would violate any such requirements. 

15. Section 409A. Notwithstanding anything herein or in the Plan to the contrary, the Option is intended to be exempt from the
applicable requirements of Section 409A of the Code and will be limited, construed and interpreted in accordance with such intent. 

16. Binding Agreement; Assignment. This Agreement will inure to the benefit of, be binding upon, and be enforceable by the Company and
its successors and assigns. The Participant will not assign (except in accordance with Section 7 hereof) any part of this Agreement without the prior express written consent of the Company. 

  
 4 













 17. Headings. The titles and headings of the various sections of this Agreement have
been inserted for convenience of reference only and will not be deemed to be a part of this Agreement. 
 18. Counterparts. This
Agreement may be executed in one or more counterparts, each of which will be deemed to be an original, but all of which will constitute one and the same instrument. 

19. Further Assurances. Each party hereto will do and perform (or will cause to be done and performed) all such further acts and will
execute and deliver all such other agreements, certificates, instruments and documents as either party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the Plan and the consummation of
the transactions contemplated thereunder. 
 20. Severability. The invalidity or unenforceability of any provisions of this Agreement
in any jurisdiction will not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Agreement in any other jurisdiction, it being
intended that all rights and obligations of the parties hereunder will be enforceable to the fullest extent permitted by law. 
 21.
Acquired Rights. The Participant acknowledges and agrees that: (a) the Company may terminate or amend the Plan at any time; (b) the award of the Option made under this Agreement is completely independent of any other award or grant
and is made at the sole discretion of the Company; (c) no past grants or awards (including, without limitation, the Option awarded hereunder) give the Participant any right to any grants or awards in the future whatsoever; and (d) any
benefits granted under this Agreement are not part of the Participant’s ordinary salary, and will not be considered as part of such salary in the event of severance, redundancy or resignation. 

* * * * * 

  
 5 













 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above. 
  

			
	 PAYCOR HCM,
INC.



 
			
		
	 By:
	 	 


 
			
		
	 Name:
	 	 


 
			
		
	 Title:
	 	 



  
 [Signature Page to Stock
Option Agreement] 













 
			
	 THE PARTICIPANT

	
	 


 
			
		
	 Name:
	 	 



  
 [Signature Page to Stock
Option Agreement]