Document:

Exhibit 10.07

 

EXHIBIT 10.07

INTUIT INC.

PERFORMANCE INCENTIVE PLAN

Effective August 1, 2002

	1.	 	Overview: Intuit’s Performance Incentive Plan (IPI) is Intuit’s
cash bonus incentive program for salaried employees other than sales
who are not eligible for overtime pay in the U.S. or its equivalent.
It replaces the Incentive Plan for Leaders (IPL) for those employees
eligible for the IPL during Intuit’s fiscal year ending July 31, 2002
and the Performance Sharing Plan for other salaried employees. The IPI
is a program under which Intuit pays discretionary cash bonus awards to
select employees. Bonus awards under the IPI are paid annually. The
amount of a bonus award is based upon the employee’s bonus target and
performance during the fiscal year and the bonus pool made available
for payments under the IPI for the applicable fiscal year.
	 
	2.	 	Purposes: The IPI is a component of Intuit’s overall strategy to
pay its employees for performance. The purposes of IPI are to: (a)
motivate salaried employees by tying compensation to performance; (b)
reward exceptional performance that supports overall Intuit objectives;
and (c) attract and retain top performing employees.
	 
	3.	 	Effective Date: The IPI is effective with Intuit’s 2003 fiscal
year that begins August 1, 2002.
	 
	4.	 	Eligibility: Employees who are not eligible for overtime pay in
the U.S. or its equivalent in other countries are eligible to
participate in the IPI, except for those salaried employees who are in
sales positions that are covered by local sales incentive or
commissions plans. Those salaried sales employees are not eligible to
participate in the IPI. Those employees who are determined to be
eligible for bonus awards under the IPI are called “Participants.”
Participants in the IPI are not eligible to simultaneously participate
in Intuit’s Performance Sharing Plan. Participants in the IPI are not
eligible to simultaneously participate in any other bonus or cash
incentive plan, unless the Director of Total Rewards otherwise
specifically approves such participation in writing. An employee must
be hired or otherwise become eligible to participate in the IPI no
later than April 1 to be eligible for a bonus award under the IPI for
that fiscal year. Being a Participant does not entitle the individual
to receive a bonus award. Bonus awards are based on individual
performance and Intuit’s performance and are payable to Participants
that meet the criteria set forth in Paragraph 6 below.
	 
	5.	 	Plan Year: The IPI operates on a fiscal year basis, August 1
through July 31.

 

 

	6.	 	Bonus Awards: Bonus awards are discretionary payments. A
Participant must be an active employee in good standing and on Intuit’s
or an approved subsidiary’s payroll on the day the bonus award is paid
to receive any portion of the bonus payment. A Participant who is not
actively employed or on an approved payroll for whatever reason on the
date a bonus award is paid is not entitled to a partial or pro rata
bonus award. Intuit may make exceptions in its sole discretion. There
is no minimum award or guaranteed payment. Bonus awards are paid based
on the fiscal year. A bonus award is calculated with reference to the
Participant’s bonus target and performance for the fiscal year and the
bonus pool made available for bonus awards under the IPI for the fiscal
year.

	 	a.	 	Bonus Targets: Bonus targets are established as a
percentage of a Participant’s base salary.

	 	 	 
	i.	 	
When an employee becomes a
Participant he or she is advised of his or her bonus
target for the fiscal year.
	
	
	
	

	ii.	 	
Following the beginning of each
fiscal year, each Participant is advised of his or her
bonus target by the executive leader of the
Participant’s business or functional unit or the
executive leader’s designee.
	
	
	
	

	iii.	 	
The Compensation Committee
establishes individual bonus targets for Executive
Officers (as defined in the Charter of the Compensation
Committee of the Board of Directors) and other Intuit
officers. Bonus targets for other employees are
established by the Director of Total Rewards in
consultation with Intuit’s President and Chief Executive
Officer, the employee’s manager and the individual
responsible for the business unit or division thereof or
functional unit or division thereof in which the
employee works and that unit or division’s HR director.
	
	
	
	

	iv.	 	
Intuit may establish bonus target
guidelines for each fiscal year. A Participant’s bonus
target for a fiscal year may be based upon a variety of
factors, including but not limited to, his or her
salary, position or level. A bonus target does not
guarantee that a bonus award will be made at that rate.

	 	b.	 	Determination of a Bonus Award Amount

	 	 	 
	i.	 	
The amount of a bonus award to a
Participant who is an Executive Officer (as defined in
the Charter of the Compensation Committee of the Board
of Directors) or other Intuit officer is determined by
the Compensation Committee. The amount of a bonus award
to a Participant who is not an officer is determined by
the executive

 

 

	 	 	 
	
	
	
	

	 	 	
leader of the Participant’s business or functional unit and
Intuit’s President and Chief Executive Officer in
consultation with the Participant’s direct manager and the
Director of Total Rewards.
	
	
	
	

	ii.	 	
A Participant’s bonus award is linked
to an assessment of the Participant’s total job
performance for the fiscal year. Factors that may be
considered, include but are not limited to, what the
Participant does to advance Intuit’s success and how the
Participant does it, especially leadership, balance of
short-term actions with long-term goals, resource
allocation and maintenance by the Participant of focus
on Intuit while prioritizing the needs of customers,
employees and stockholders.
	
	
	
	

	iii.	 	
There is neither a minimum nor
maximum amount of a bonus award that may be paid to a
Participant for a fiscal year. At Intuit’s discretion,
a bonus award amount may be prorated for those
Participants who are eligible to participate in the IPI
for less than a full fiscal year.

	 	c.	 	When Bonus Awards are Paid: The timing for payment
of a bonus award is determined by Intuit’s Director of Total
Rewards in consultation with Intuit’s President and Chief
Executive Officer and other senior management. A Participant
has no right to a bonus award until it is paid. Notwithstanding
the foregoing, in the event of an administrative error in the
calculation or payment of a bonus award to a Participant, Intuit
reserves the right to seek recovery from a Participant of an
erroneously paid excessive bonus amount.

	7.	 	Unfunded: The IPI is not funded. Bonus awards, if any, are made
from the general assets of Intuit. Intuit determines in its sole
discretion the amount of funds it would like to make available for
bonus awards based on Intuit’s performance for the fiscal year.
Intuit’s performance for this purpose may be measured in a number of
ways, including but not limited to: financial measures, such as revenue
and operating income; qualitative measures, such as accomplishments to
position Intuit for the future; the year’s market conditions;
stockholder returns and progress of Intuit’s business model. Intuit is
not be bound to pay any part of such funds in bonus awards.
	 
	8.	 	Amendment: Intuit reserves the right to terminate, change, modify
or amend the provisions of the Plan at any time. The President and
Chief Executive Officer or the Chief Financial Officer and the Senior
Vice President, Human Resources have the authority to make amendments
to the Plan that do not significantly increase the cost of the Plan
which in their determination (i) clarify the terms of the Plan; (ii)
assist in the administration of the Plan; or (iii) are necessary or
advisable for the Plan comply with applicable law.

 

 

	9.	 	Administration and Discretion: Intuit through its Compensation
Committee or President and Chief Executive Officer and the Director of
Total Rewards has the sole discretion to: (a) adopt such rules,
regulations, agreements and instruments as it deems necessary to
administer the IPI; (b) interpret the terms of the IPI; (c) determine
an employee’s eligibility under the IPI; (d) determine whether a
Participant is to receive a bonus award under the IPI; (e) determine
the amount of any bonus award to a Participant; (f) determine when a
bonus award is to be paid to a Participant and whether any such bonus
award should be prorated based on the Participant’s service or other
factors; (g) determine whether a bonus award will be made in
replacement of or as an alternative to any other incentive or
compensation plan of Intuit or acquired business unit or corporation;
(h) grant waivers of IPI standard procedures and policies; (i) correct
any defect, supply any omission, or reconcile any inconsistency in the
IPI, any bonus award or any notice to Participants or a Participant
regarding bonus awards; and (j) take any and all other actions it deems
necessary or advisable for the proper administration of the IPI.
	 
	10.	 	Participation Provides No Guarantee of Employment: Employment at
Intuit and its subsidiaries is at-will. Participation in the IPI in no
way constitutes an employment contract conferring either a right or
obligation of continued employment.
	 
	11.	 	Governing Law: The IPI will be governed by and construed in
accordance with the laws of the State of California.Exhibit 10.09

 

EXHIBIT 10.09

INDEMNITY AGREEMENT

     This Indemnity Agreement (this “Agreement”), dated as of
     (“Effective Date”), is made by and between Intuit Inc., a
Delaware corporation (the “Company”), and         , an
individual who is a director and/or officer of the Company and/or of a
subsidiary of the Company (the “Indemnitee”).

RECITALS

     A. The Company is aware that competent and experienced persons are
increasingly reluctant to serve as directors or officers of corporations unless
they are protected by comprehensive liability insurance and/or indemnification,
due to their increased exposure to litigation costs and risks resulting from
their service to such corporations, and due to the fact that this exposure
frequently bears no reasonable relationship to the compensation of such
directors and officers.

     B. The Board of Directors of the Company (the “Board”) has determined that
uncertainties relating to the availability, expense and the scope of protection
afforded by liability insurance and uncertainties regarding the availability
and scope of indemnification have increased the difficulty of attracting and
retaining such persons to serve as directors and officers, and that this
situation is detrimental to the best interests of the Company and its
stockholders.

     C. Based on the experience of its members, the Board has concluded that,
to retain and attract talented and experienced individuals to serve as officers
and directors of the Company and its subsidiaries, and to encourage such
individuals to make the business decisions and take the business risks
necessary for the success of the Company and its subsidiaries, it is
reasonable, prudent and necessary for the Company to contractually obligate
itself to indemnify, and to advance expenses on behalf of, its officers and
directors and certain officers and directors of its subsidiaries, and to assume
for itself maximum liability for expenses and damages in connection with claims
against such officers and directors in connection with their service to the
Company and its subsidiaries (including service in such capacities during time
periods occurring prior to the date this Agreement is executed).

     D. Section 145 (“Section 145”) of the General Corporation Law of Delaware,
under which the Company is organized (the “Law”), empowers the Company to
indemnify by agreement its officers, directors, employees and agents, and
persons who serve, at the request of the Company, as directors, officers,
employees or agents of other corporations or enterprises, and expressly
provides that the indemnification provided by the Law is not exclusive.

     E. The Company has requested the Indemnitee to serve or continue to serve
as a director or officer of the Company and/or one or more of the subsidiaries
of the Company, and desires that the Indemnitee do so free from undue concern
for claims for damages arising out of or related to such services to the
Company and/or subsidiaries of the Company that may impede the free exercise of
the Indemnitee’s business judgment on behalf of the Company and/or any of its
subsidiaries.

     F. The Indemnitee is willing to serve and to continue to serve the Company
on the condition that the Indemnitee is indemnified and afforded rights to the
advancement of expenses as provided in this Agreement.

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     NOW, THEREFORE, in consideration of the covenants contained in this
Agreement, the parties hereto, intending to be legally bound, hereby agree as
follows:

     1. Definitions. For the purposes of this Agreement, the following terms
have the following meanings:

          (a) Agent. An “agent” of the Company means any person who: (i) is or was
a director or officer of the Company or a subsidiary (as defined below) of the
Company; (ii) is or was serving at the request of, for the convenience of, or
to represent the interest of, the Company or a subsidiary of the Company as a
director or officer of another foreign or domestic corporation, partnership,
joint venture, limited liability company, trust or other enterprise or an
affiliate of the Company; or (iii) was a director or officer of a foreign or
domestic corporation which was a predecessor corporation of the Company or a
subsidiary of the Company, or was a director or officer of another enterprise
or affiliate of the Company at the request of, for the convenience of, or to
represent the interests of, such predecessor corporation. The term
“enterprise” includes, without limitation, any employee benefit plan of the
Company, its subsidiaries, affiliates and predecessor corporations.

          (b) Change of Control. A “Change of Control” shall be deemed to have
occurred if, after the Effective Date: (i) any “person” (as such term is used
in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended
(the “1934 Act”)), other than a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or a corporation owned directly
or indirectly by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company, is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or
indirectly, of securities of the Company representing fifty percent (50%) or
more of the combined voting power of the Company’s then outstanding securities
without the prior approval of at least two-thirds of the members of the Board
in office immediately prior to such person attaining such percentage interest;
(ii) the Company is a party to a consummated merger, consolidation, or sale of
assets of the Company, as a consequence of which the members of the Board in
office immediately prior to the consummation of such transaction constitute
less than a majority of the members of the Board immediately after the
consummation of such transaction; (iii) the stockholders of the Company approve
a plan of complete liquidation or dissolution of the Company or an agreement
for the sale or disposition by the Company (in one transaction or a series of
transactions) of all or substantially all of the Company’s assets; or (iv)
during any period of twenty-four consecutive months, other than as a result of
an event described in clause (ii) or clause (iii) of this Section 1(b), the
Incumbent Directors (as defined below) cease for any reason to constitute at
least a majority of the members of the Board. For purposes of the foregoing
clause (iv), with respect to any particular twenty-four month period, the term
“Incumbent Directors” means (A) the individuals who at the beginning of such
twenty-four month period constituted the Board and (B) each other individual
whose election to the Board during such twenty-four month period or whose
nomination for election to the Board by the Company’s stockholders during such
twenty-four month period was approved by a vote of at least two-thirds of the
directors in office who were either members of the Board at the beginning of
such twenty-four month period or whose election or nomination for election to
the Board was approved as described in this clause (B).

          (c) Company. The term the “Company” includes, in the event of a merger or
consolidation involving the Company, (i) the corporation surviving or resulting
from such merger or consolidation (the “survivor”) and (ii) any constituent
corporation of such merger or consolidation absorbed in such merger or
consolidation or merger which, if its separate existence had continued, would
have had the power and authority to indemnify its agents so that, if the
Indemnitee is or was an agent of such constituent corporation, or is or was
serving at the request of such constituent corporation as an agent of another
corporation or other enterprise, then from and after the consummation of such
merger or consolidation the Indemnitee shall stand in the same position under
the provisions of this Agreement with

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respect to the survivor as the Indemnitee would have with respect to such
constituent corporation if its separate existence had continued.

          (d) Disinterested Director. The term “Disinterested Director” means a
member of the Board who is not and was not a party to a proceeding (as defined
below) in respect of which indemnification is sought by the Indemnitee.

          (e) Expenses. The term “expenses” includes all direct and indirect costs
of any type or nature whatsoever (including, without limitation, all attorneys’
fees and related disbursements and other out-of-pocket costs) actually and
reasonably incurred by the Indemnitee in connection with the investigation,
defense or appeal of, or being a witness in or otherwise participating in
(including on appeal), or preparing to defend, to be a witness in or to
otherwise participate in, a proceeding (as defined below), or establishing or
enforcing a right to indemnification or advancement of expenses under this
Agreement, Section 145 or otherwise; provided, however, that the term expenses
shall not include any judgments, fines, ERISA excise taxes or penalties or
amounts paid in settlement of a proceeding.

          (f) Independent Counsel. The term “Independent Counsel” means a law
firm, or an attorney-at-law, that is experienced in matters of corporation law
and neither presently is, nor in the past three years has been, retained to
represent: (i) the Company or the Indemnitee in any matter material to the
Company or the Indemnitee, or (ii) any other party to the proceeding giving
rise to a claim for indemnification or advancement of expenses under this
Agreement. Notwithstanding the foregoing, the term “Independent Counsel” shall
not include any person who, under the applicable standards of professional
conduct then prevailing, would have a conflict of interest in representing
either the Company or the Indemnitee in an action to determine the Indemnitee’s
rights under this Agreement. The Company agrees to pay the reasonable fees and
expenses of the Independent Counsel referred to above incurred in performing
any function or service in accordance with this Agreement which expressly
contemplates the participation of Independent Counsel and, if requested to do
so by such Independent Counsel, the Company will enter into an indemnification
agreement mutually agreed to by the Company and Independent Counsel at the time
Independent Counsel is engaged.

          (g) Proceeding. The term “proceeding” means any threatened, pending or
completed action, suit, alternative dispute resolution mechanism (including but
not limited to an arbitration or mediation) or other proceeding, whether civil,
criminal, administrative, investigative or any other type whatsoever, or any
hearing, inquiry or investigation that the Indemnitee in good faith believes
might lead to the institution of any such action, suit, arbitration, mediation,
alternative dispute resolution mechanism or other proceeding.

          (h) Subsidiary. The term “subsidiary” means any corporation of which more
than fifty percent (50%) of the outstanding voting securities is owned directly
or indirectly by (i) the Company, (ii) the Company and one or more of its
subsidiaries or (iii) one or more of the Company’s subsidiaries.

     2. Agreement to Serve. The Indemnitee agrees to serve and/or continue to
serve as an agent of the Company, at the will of the Company (or under separate
agreement, if such agreement exists), in the capacity the Indemnitee currently
serves as an agent of the Company, faithfully and to the best of the
Indemnitee’s ability, so long as the Indemnitee is duly appointed or elected
and qualified in accordance with the applicable provisions of the Bylaws or
charter documents of the Company or any subsidiary of the Company or other
enterprise; provided, however, that the Indemnitee may at any time and for any
reason resign from such position (subject to any contractual obligation that
the Indemnitee may have assumed apart from this Agreement), and the Company or
any subsidiary shall have no obligation under this Agreement to continue the
Indemnitee in any such position.

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     3. Maintenance of Liability Insurance.

          (a) The Company hereby covenants and agrees that, so long as the
Indemnitee shall continue to serve as an agent of the Company and thereafter
so long as the Indemnitee shall be subject to any possible proceeding by
reason of the fact that the Indemnitee was an agent of the Company, the
Company, subject to Section 3(b), shall use reasonable efforts to obtain and
maintain in full force and effect directors’ and officers’ liability
insurance (“D&O Insurance”) in reasonable amounts from established and
reputable insurers, on such terms as may be approved from time to time by the
Board.

          (b) Notwithstanding the foregoing, the Company shall have no obligation
to obtain or maintain D&O Insurance if the Company determines in good faith
that such insurance is not reasonably available, the premium costs for such
insurance are disproportionate to the amount of coverage provided, the
coverage provided by such insurance is limited by exclusions so as to provide
an insufficient benefit, or the Indemnitee is covered by similar insurance
maintained by a subsidiary of the Company.

     4. Mandatory Indemnification.

          (a) Third Party Actions. If the Indemnitee is a person who was or is a
party to, or is threatened to be made a party to, any proceeding (other than an
action by or in the right of the Company) by reason of the fact that the
Indemnitee is or was an agent of the Company, or by reason of anything done or
not done by the Indemnitee in the Indemnitee’s capacity as an agent of the
Company, then, subject to the provisions of Section 8 of this Agreement and the
exceptions set forth in Section 9 of this Agreement, the Company shall
indemnify the Indemnitee against any and all expenses and liabilities of any
type whatsoever (including, but not limited to, judgments, fines, ERISA excise
taxes or penalties and amounts paid in settlement) actually and reasonably
incurred by the Indemnitee in connection with the investigation, defense,
settlement or appeal of, or being a witness in or participating in (including
on appeal) or preparing to defend, to be a witness in or to participate in,
such proceeding if the Indemnitee acted in good faith and in a manner the
Indemnitee reasonably believed to be in, or not opposed to, the best interests
of the Company and, with respect to any criminal action or proceeding, had no
reasonable cause to believe the Indemnitee’s conduct was unlawful.

          (b) Actions by or in Right of the Company. If the Indemnitee was or is a
party to, or is threatened to be made a party to, any proceeding by or in the
right of the Company to procure a judgment in its favor by reason of the fact
that the Indemnitee is or was an agent of the Company, or by reason of anything
done or not done by the Indemnitee in the Indemnitee’s capacity as an agent of
the Company, then, subject to the provisions of Section 8 of this Agreement and
the exceptions set forth in Section 9 of this Agreement, the Company shall
indemnify the Indemnitee against any amounts paid in settlement of any such
proceeding and all expenses actually and reasonably incurred by Indemnitee in
connection with the investigation, defense, settlement or appeal of, or being a
witness in or participating in (including on appeal), or preparing to defend,
to be a witness in or to participate in, such proceeding if the Indemnitee
acted in good faith and in a manner the Indemnitee reasonably believed to be
in, or not opposed to, the best interests of the Company; except that no
indemnification under this subsection 4(b) shall be made in respect of any
claim, issue or matter as to which the Indemnitee shall have been finally
adjudged to be liable to the Company by a court of competent jurisdiction,
unless and only to the extent that the Court of Chancery or the court in which
such proceeding was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, the
Indemnitee is fairly and reasonably entitled to indemnity for such amounts
which the Court of Chancery or such other court shall deem proper.

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          (c) Witness Expenses in Certain Proceedings. Notwithstanding any other
provision of this Agreement to the contrary, to the extent that the Indemnitee
was or is, by reason of the fact that the Indemnitee is or was an agent of the
Company, a witness or other non-party participant in any proceeding to which
the Indemnitee is not made a party then the Company shall indemnify the
Indemnitee against all expenses actually and reasonably incurred by the
Indemnitee or on the Indemnitee’s behalf solely in connection with the
Indemnitee’s being a witness or other non-party participant in such proceeding
(including on appeal), and in preparing to be a witness or such other non-party
participant in such proceeding without the need for any determination with
respect to the Indemnitee’s conduct pursuant to Section 8 of this Agreement.

          (d) Exception for Amounts Covered by Insurance. Notwithstanding the
foregoing, the Company shall not be obligated to make any separate payments to
the Indemnitee for expenses or liabilities of any type whatsoever (including,
but not limited to, judgments, fines, ERISA excise taxes or penalties and
amounts paid in settlement) to the extent that D&O Insurance covers such
expenses or liabilities and the carrier of the D&O Insurance makes payment for
such expenses and/or liabilities directly to the Indemnitee. To the extent
that any payment payable by the carrier of the D&O Insurance in respect of such
expenses or liabilities has previously been paid or advanced to the Indemnitee
by the Company, the parties agree that the Company shall be subrogated to the
rights of the Indemnitee to receive such payments from the D&O Insurance
carrier and that the Indemnitee will take all actions reasonably necessary to
turn over or otherwise cause the Company to receive such payment from the D&O
Insurance carrier.

     5. Partial Indemnification and Contribution.

          (a) Partial Indemnification. If the Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of any expenses or liabilities of any type whatsoever (including, but
not limited to, judgments, fines, ERISA excise taxes or penalties and amounts
paid in settlement) incurred by The Indemnitee in the investigation, defense,
settlement or appeal of, or being a witness in or participating in (including
on appeal), or preparing to defend, to be a witness in or to participate in, a
proceeding but the Indemnitee is not entitled, however, to indemnification for
the total amount thereof, then the Company shall nevertheless indemnify the
Indemnitee for such total amount except as to the portion thereof to which the
Indemnitee is not entitled to indemnification.

          (b) Contribution. If the Indemnitee is not entitled to the
indemnification provided in Section 4 for any reason other than the statutory
limitations set forth in the Law or the provisions of Section 9, then in
respect of any threatened, pending or completed proceeding in which the Company
is jointly liable with the Indemnitee (or would be if joined in such
proceeding), the Company shall contribute to the amount of expenses, judgments,
fines, ERISA excise taxes or penalties and amounts paid in settlement actually
and reasonably incurred and paid or payable by the Indemnitee in such
proportion as is appropriate to reflect (i) the relative benefits received by
the Company on the one hand and the Indemnitee on the other hand from the
transaction from which such proceeding arose and (ii) the relative fault of the
Company on the one hand and of the Indemnitee on the other hand in connection
with the events which resulted in such expenses, judgments, fines, ERISA excise
taxes, penalties or settlement amounts, as well as any other relevant equitable
considerations. The relative fault of the Company on the one hand and of the
Indemnitee on the other hand shall be determined by reference to, among other
things, the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent the circumstances resulting in such expenses,
judgments, fines, ERISA excise taxes, penalties or settlement amounts. The
Company agrees that it would not be just and equitable if contribution pursuant
to this Section 5(b) were determined by pro rata allocation or any other method
of allocation which does not take account of the foregoing equitable
considerations.

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     6. Mandatory Advancement of Expenses.

          (a) Advancement. Subject to the exceptions in Section 9 below, the
Company shall advance all expenses actually and reasonably incurred by the
Indemnitee in connection with the investigation, defense, settlement or appeal
of, or the Indemnitee’s being a witness in or participating in (including on
appeal), or preparing to defend, to be a witness in or to participate in, any
proceeding to which the Indemnitee is a party or witness or other participant
in, or is threatened to be made a party to or witness or other participant in,
by reason of the fact that the Indemnitee is or was an agent of the Company or
by reason of anything done or not done by the Indemnitee in any such capacity.
The Indemnitee hereby undertakes to promptly repay such amounts advanced to the
Indemnitee to the Company only if, and to the extent that, it shall ultimately
be determined that the Indemnitee is not entitled to be indemnified by the
Company under the provisions of this Agreement, the Certificate of
Incorporation or Bylaws of the Company, the Law or otherwise with respect to
the proceeding in respect of which such amounts were advanced. The advances to
be made hereunder shall be paid by the Company to the Indemnitee within twenty
(20) days following delivery of a written request therefor by the Indemnitee to
the Company. Such request shall reasonably evidence the expenses incurred by
the Indemnitee (such as, for example, by submission of invoices from third
parties for such expenses).

          (b) Exception. Notwithstanding the provisions of Section 6(a), and
subject to the provisions of Section 6(c), unless otherwise determined pursuant
to Section 8, no advance of expenses shall be made by the Company if a
determination is reasonably and promptly made by the Board by the vote of a
majority of the Disinterested Directors (or, if there are no Disinterested
Directors, by Independent Counsel in a written opinion) that the facts known to
the party making such determination at the time such determination is made
demonstrate clearly and convincingly that, (i) with respect to the proceeding
in respect of which the Indemnitee has requested an advance of expenses from
the Company, the Indemnitee acted in bad faith or in a manner that the
Indemnitee did not believe to be in the best interests of the Company and its
stockholders or (ii) that the expenses submitted for advancement have been
fraudulently submitted by the Indemnitee or were submitted in bad faith by the
Indemnitee.

          (c) Effect of Change of Control. Notwithstanding the foregoing provisions
of Section 6(b), if, at any time after the occurrence of the activities or
omissions that are the primary focus of the proceeding with respect to which an
advance of expenses is sought by the Indemnitee, the Company has undergone a
Change of Control, then only Independent Counsel selected by the Indemnitee
(and not a majority of the Disinterested Directors) may make the determination
described in Section 6(b).

     7. Notice; Assumption of Defense.

          (a) Notice of Proceeding. Promptly after receipt by the Indemnitee of
notice of the commencement of or the threat of commencement of any proceeding,
the Indemnitee shall, if the Indemnitee believes that indemnification with
respect to such proceeding may be sought from the Company under this Agreement,
notify the Company of the commencement or threat of commencement thereof.

          (b) Notice to D&O Insurance Carrier. If, at the time of the receipt of a
notice of the commencement of a proceeding pursuant to Section 7(a), the
Company has D&O Insurance in effect, the Company shall give prompt notice of
the commencement of such proceeding to the insurer or insurers providing such
D&O Insurance in accordance with the procedures set forth in the respective D&O
Insurance policies. The Company shall thereafter take all necessary or
desirable action to cause such insurers to pay, on behalf of the Indemnitee,
all amounts payable by such insurers as a result of such proceeding in
accordance with the terms of such D&O Insurance policies.

-6-

 

          (c) Assumption of Defense by Company. In the event the Company shall be
obligated to advance the expenses for any proceeding against the Indemnitee,
the Company, if appropriate, shall be entitled to assume the defense of such
proceeding, with counsel approved by the Indemnitee (which approval shall not
be unreasonably withheld), upon the Company’s delivery to the Indemnitee of
written notice of the Company’s election to do so. After delivery of such
notice, approval of such counsel by the Indemnitee and the retention of such
counsel by the Company, the Company will not be liable to the Indemnitee under
this Agreement for any fees of counsel subsequently incurred by the Indemnitee
with respect to the same proceeding, provided that: (i) the Indemnitee shall
have the right to employ his or her own counsel in any such proceeding at the
Indemnitee’s expense; (ii) the Indemnitee shall have the right to employ his or
her own counsel in connection with any such proceeding at the expense of the
Company, if such counsel serves only in a review, observer, advice and
counseling capacity and does not otherwise materially control or participate in
the defense of such proceeding; and (iii) if (A) the employment of counsel by
the Indemnitee has been previously authorized by the Company, (B) the
Indemnitee shall have reasonably concluded that there may be a conflict of
interest between the Company and the Indemnitee in the conduct of any such
defense or (C) the Company shall not, in fact, have employed counsel to assume
the defense of such proceeding, then the fees and expenses (of the types
described in the definition of expenses in Section 1(e) of this Agreement) of
the Indemnitee’s counsel shall be at the expense of the Company. The Company
shall not be required to obtain the consent of the Indemnitee to the settlement
of any proceeding as to which the Company has assumed the defense of the
Indemnitee if the Company assumes full and sole responsibility and liability
for such settlement and the settlement grants the Indemnitee a complete and
unqualified release in respect of the potential liability arising from such
proceeding.

     8. Determination of Right to Indemnification.

          (a) Indemnitee Successful on Merits. To the extent the Indemnitee has
been successful on the merits or otherwise in defense of any proceeding
referred to in Section 4(a) or 4(b) of this Agreement or in the defense of
any claim, issue or matter described therein, the Company shall indemnify the
Indemnitee against all expenses actually and reasonably incurred by the
Indemnitee in connection with the investigation, defense or appeal of such
proceeding or the Indemnitee’s being a witness or other participant in such
proceeding.

          (b) Indemnitee Not Successful on Merits. In the event that Section 8(a)
is inapplicable, the Company shall nonetheless indemnify the Indemnitee as
provided in Section 4(a) or 4(b), as applicable, unless the Company shall
claim and prove by clear and convincing evidence to a forum listed in Section
8(d) below that (i) the Indemnitee has not met the applicable standard of
conduct required to entitle the Indemnitee to such indemnification under
Section 4(a) or 4(b), as applicable, or (ii) the Indemnitee is not entitled
to indemnification under the provisions of Section 9.

          (c) Witness Expenses if Section 4(c) Applies. In the event that the
provisions of Section 4(c) apply because the Indemnitee was not a party to
the proceeding, the Company shall indemnify the Indemnitee against all
expenses actually and reasonably incurred by the Indemnitee or on the
Indemnitee’s behalf in connection with being a witness or other non-party
participant in such proceeding (including on appeal), and in preparing to be
a witness or such other non-party participant in such proceeding.

          (d) Selection of Forum to Determine Entitlement to Indemnification. In
the event that the Company claims that the Indemnitee is not entitled to
indemnification pursuant to Section 4(a) or 4(b) of this Agreement, then the
Indemnitee shall be entitled to select the forum in which the validity of the
Company’s claim that the Indemnitee is not entitled to indemnification shall
be heard from among the following:

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               (1) A majority of the members of the Board who are Disinterested
Directors with respect to the proceeding for which indemnification is being
sought by the Indemnitee;

               (2) The stockholders of the Company;

               (3) Independent Counsel selected by the Indemnitee, and reasonably
approved by the Board, which Independent Counsel shall make such
determination in a written opinion; or

               (4) A panel of three arbitrators, one of whom is selected by the
Company, another of whom is selected by the Indemnitee and the last of whom
is selected by the first two arbitrators so selected, who will conduct the
determination in Mountain View, California pursuant to the Commercial
Arbitration Rules of the American Arbitration Association.

          (e) Procedure for Determination. As soon as practicable, and in no
event later than thirty (30) days after written notice of the Indemnitee’s
choice of forum pursuant to Section 8(d), the Company shall, at its own
expense, submit to the selected, in such manner as the Indemnitee or the
Indemnitee’s counsel may reasonably request, its claim under Section 8(b)
that the Indemnitee is not entitled to indemnification and the Company shall
act in the utmost good faith to assure the Indemnitee a complete opportunity
to defend against such claim. The Indemnitee shall cooperate with the forum
making such determination with respect to the Indemnitee’s entitlement to
indemnification, including providing to such forum upon reasonable advance
request any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to the Indemnitee
and reasonably necessary to such determination.

          (f) Effect of Determination. If the forum listed in Section 8(d) selected
by the Indemnitee determines that the Indemnitee is entitled to indemnification
with respect to a specific proceeding, then such determination shall be final
and binding on the Company, the Company shall indemnify the Indemnitee to the
extent so determined by such forum and payment of such indemnification shall be
made by the Company within thirty (30) days after such determination. If the
forum listed in Section 8(d) selected by the Indemnitee determines that the
Indemnitee is not entitled to indemnification with respect to a specific
proceeding, then the Indemnitee shall have the right to apply to the Court of
Chancery of Delaware, the court in which that proceeding is or was pending or
any other court of competent jurisdiction, for the purpose of appealing such
determination and obtaining an adjudication by such court of the Indemnitee’s
entitlement to such indemnification pursuant to this Agreement with respect to
such proceeding, provided that such right is exercised by the Indemnitee within
sixty (60) days after the final decision of such forum is rendered. The
Company shall not oppose the Indemnitee’s right to seek any such adjudication,
and any such judicial adjudication shall be conducted in all respects as a de
novo trial on the merits, such that any determination made by any forum
selected pursuant to Section 8(d) that the Indemnitee is not entitled to be
indemnified hereunder shall not be binding on any such court and the Indemnitee
shall not be prejudiced by reason of any such determination by such forum. If
the forum selected by the Indemnitee pursuant to Section 8(d) to determine
whether the Indemnitee is entitled to indemnification shall not have made a
determination within 120 days after the date on which the Company is required
by Section 8(e) to submit to such forum its claim that the Indemnitee is not
entitled to such indemnification, then the Indemnitee shall be entitled to
apply to the Court of Chancery of Delaware to have the Indemnitee’s request for
indemnification adjudicated by such Court in lieu of having the determination
made by such forum. The Company shall not oppose the Indemnitee’s right to
seek any such adjudication.

-8-

 

          (g) No Presumption. For purposes of this Agreement, the termination of
any proceeding by judgment, order, settlement (whether with or without court
approval) or conviction, or upon a plea of nolo contendere, or its equivalent,
shall not create a presumption that the Indemnitee did not meet any particular
standard of conduct or have any particular belief or that a court has
determined that indemnification is not permitted by this Agreement or
applicable law. In addition, neither the failure of any forum selected
pursuant to Section 8(d) above to have made a determination as to whether the
Indemnitee has met any particular standard of conduct or had any particular
belief, nor an actual determination by any such selected forum that the
Indemnitee has not met such standard of conduct, shall be a defense to the
Indemnitee’s claim for indemnification or create a presumption that the
Indemnitee has not met any particular standard of conduct or did not have any
particular belief. In connection with any determination by any selected forum
or otherwise as to whether the Indemnitee is entitled to be indemnified
hereunder, the burden of proof shall be on the Company to establish that the
Indemnitee is not so entitled.

          (h) Certain Expenses. Notwithstanding any other provision in this
Agreement to the contrary, the Company shall indemnify the Indemnitee against
all expenses incurred by the Indemnitee in connection with any hearing or
proceeding under this Section 8 (including any adjudication before any court
contemplated by the foregoing provisions of this Section 8) involving the
Indemnitee and against all expenses incurred by the Indemnitee in connection
with any other proceeding between the Company and the Indemnitee involving
the interpretation or enforcement of the rights of the Indemnitee under this
Agreement unless a court of competent jurisdiction finds that each of the
material claims and/or defenses of the Indemnitee in any such proceeding was
frivolous or not made in good faith.

     9. Exceptions. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement:

          (a) Claims Initiated by the Indemnitee. To indemnify or advance expenses
to the Indemnitee with respect to proceedings or claims initiated or brought
voluntarily by the Indemnitee and not by way of defense, except with respect to
proceedings specifically authorized by the Board or brought to establish or
enforce a right to indemnification and/or advancement of expenses arising under
this Agreement, the Bylaws or charter documents of the Company or any
subsidiary or any statute or law or otherwise, but such indemnification or
advancement of expenses may be provided by the Company in specific cases if the
Board finds it to be appropriate; or

          (b) Lack of Good Faith. To indemnify the Indemnitee for any expenses
incurred by the Indemnitee with respect to any proceeding instituted by the
Indemnitee to enforce or interpret this Agreement, if a court of competent
jurisdiction determines that each of the material assertions made by the
Indemnitee in such proceeding was not made in good faith or was frivolous; or

          (c) Unauthorized Settlements. To indemnify the Indemnitee under this
Agreement for any amounts paid in settlement of a proceeding unless the
Company consents in advance in writing to such settlement; or

          (d) Claims by the Company for Willful Misconduct. To indemnify or
advance expenses to the Indemnitee under this Agreement for any expenses
incurred by the Indemnitee with respect to any proceeding or claim brought by
the Company against the Indemnitee for willful misconduct, unless a court of
competent jurisdiction determines that each of such claims was not made in
good faith or was frivolous; or

-9-

 

          (e) Section 16(b) Actions. To indemnify the Indemnitee on account of
any suit in which judgment is rendered against the Indemnitee for an
accounting of profits made from the purchase or sale by the Indemnitee of
securities of the Company pursuant to the provisions of Section 16(b) of the
1934 Act and amendments thereto or similar provisions of any federal, state
or local statutory law; or

          (f) Willful Misconduct. To indemnify the Indemnitee on account of the
Indemnitee’s conduct which is finally adjudged to have been knowingly
fraudulent or deliberately dishonest, or to constitute willful misconduct or
a knowing violation of law; or

          (g) Unlawful Indemnification. To indemnify the Indemnitee if a final
decision by a court having jurisdiction in the matter shall determine that
such indemnification is not lawful. In this respect, the Company and the
Indemnitee have been advised that the Securities and Exchange Commission
takes the position that indemnification for liabilities arising under the
federal securities laws is against public policy and is, therefore,
unenforceable and that claims for indemnification should be submitted to
appropriate courts for adjudication.

     10. Non-Exclusivity. The provisions for indemnification and advancement
of expenses set forth in this Agreement shall not be deemed exclusive of, or a
substitute for, or to diminish or abrogate, any other rights which the
Indemnitee may have under any provision of law, the Company’s Certificate of
Incorporation or Bylaws, the vote of the Company’s stockholders or
Disinterested Directors, other agreements or otherwise, both as to action in
the Indemnitee’s official capacity and to action in another capacity while
occupying his or her position as an agent of the Company; provided, however,
that this Agreement shall supersede and replace that certain Indemnity
Agreement between the Indemnitee and the Company entered into prior to the
Effective Date (the “Prior Indemnity Agreement”), except that, to the extent
that superseding or replacing the Prior Indemnity Agreement with this Agreement
would for any reason result in the Indemnitee not being entitled to rights
under this Agreement with respect to any proceeding arising out of any facts,
events or circumstances occurring prior to the Effective Date of this Agreement
(a “Pre-Existing Proceeding”), then, in such case only, the Indemnitee’s rights
and obligations under the Prior Indemnity Agreement will survive, but only with
respect to any such Pre-Existing Proceeding. The Indemnitee’s rights hereunder
shall continue after the Indemnitee has ceased acting as an agent of the
Company and shall inure to the benefit of the heirs, executors and
administrators of the Indemnitee. No amendment, alteration or repeal of this
Agreement or of any provision hereof shall limit or restrict any right of the
Indemnitee under this Agreement in respect of any action taken or omitted by
the Indemnitee as an agent prior to such amendment, alteration or repeal. To
the extent that a change in the Law, whether by statue or judicial decision,
permits greater indemnification or advancement of expenses than would be
afforded currently under the Company’s Bylaws and this Agreement, it is the
intent of the parties hereto that the Indemnitee shall enjoy by this Agreement
the greater benefits afforded by such change. The assertion or employment of
any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other right or remedy.

     11. Interpretation of Agreement; References. It is understood that the
parties hereto intend this Agreement to be interpreted and enforced so as to
provide indemnification and advancement of expenses to the Indemnitee to the
fullest extent now or hereafter permitted by law, except as expressly limited
herein. Unless otherwise indicated, all references in this Agreement to a
“Section” refer to a Section of this Agreement.

     12. Severability. If any provision or provisions of this Agreement shall
be held to be invalid, illegal or unenforceable for any reason whatsoever,
then: (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including, without limitation, all portions of
any paragraphs of this Agreement containing any such provision held to be
invalid, illegal or unenforceable that are not themselves invalid, illegal or
unenforceable) shall not in any way be affected or

-10-

 

 impaired thereby; and (b) to the fullest extent possible, the provisions
of this Agreement (including, without limitation, all portions of any
paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable and to give effect to
Section 11.

     13. Modification and Waiver. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by both of the
parties hereto. No waiver of any of the provisions of this Agreement shall be
deemed or shall constitute a waiver of any other provision hereof (whether or
not similar), nor shall such waiver constitute a continuing waiver.

     14. Subrogation. In the event of full payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of the Indemnitee, who shall execute all documents required and
shall do all acts that may be necessary or desirable to secure such rights and
to enable the Company effectively to bring suit to enforce such rights.

     15. Counterparts. This Agreement may be executed in one or more
counter-parts, which shall together constitute one agreement.

     16. Successors and Assigns. The terms of this Agreement shall bind, and
shall inure to the benefit of, the successors and assigns of the parties
hereto, and in particular shall be binding upon any company into which the
Company is merged or consolidated and any corporation or other entity that
comes within the definition of the “Company” under the provisions of Section 1
of this Agreement.

     17. Notice. All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed duly given: (a) if
delivered by hand and signed for by the party addressee; (b) if mailed by
certified mail, with postage prepaid, on the third business day after the
mailing date; (c) the first business day after deposit with an express
overnight courier, with proof of delivery from the courier requested.
Addresses for notice to either party are as shown on the signature page of this
Agreement or as subsequently modified by written notice.

     18. Governing Law. This Agreement shall be governed exclusively by and
construed according to the laws of the State of Delaware, as applied to
contracts between Delaware residents entered into and to be performed entirely
within Delaware.

     19. Consent to Jurisdiction. The Company and the Indemnitee each hereby
irrevocably consent to the jurisdiction of the courts of the State of Delaware
for all purposes in connection with any action or proceeding which arises out
of or relates to this Agreement.

     20. Attorneys’ Fees. In the event the Indemnitee is required to bring any
action to enforce the Indemnitee’s rights under this Agreement, the Indemnitee
shall be entitled to all reasonable fees and expenses in bringing and pursuing
such action, unless a court of competent jurisdiction finds each of the
material claims of the Indemnitee in any such action was frivolous and not made
in good faith.

[The remainder of this page has intentionally been left blank]

-11-

 

     IN WITNESS WHEREOF, the parties hereto have entered into this Indemnity
Agreement effective as of the date first written above.

	 	 	 	 	 
	INTUIT INC.	 	INDEMNITEE:

	 
	By:	 	 	 	 	 	 
	 	
	 	

	Name:	 	 	 	 	 	 
	 	

	Title:	 	 	 	 	 	 
	 	

	Address:	 	 	Address:	 
	 	
	 	 	

	 
	 	
	 	 	

[Signature Page to Indemnity Agreement]

-12-

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