Document:

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                                                                    EXHIBIT 10.1

                           SECOND AMENDED AND RESTATED

                           2004 WCA WASTE CORPORATION

                                 INCENTIVE PLAN

                         (EFFECTIVE SEPTEMBER 15, 2006)

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                           SECOND AMENDED AND RESTATED
                           2004 WCA WASTE CORPORATION
                                 INCENTIVE PLAN
                         (EFFECTIVE SEPTEMBER 15, 2006)

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                          <C>
ARTICLE I INTRODUCTION....................................................    1
   1.1      Purpose.......................................................    1
   1.2      Definitions...................................................    1
   1.3      Shares Subject to the Plan....................................    5
   1.4      Administration of the Plan....................................    6
   1.5      Granting of Awards to Participants............................    7
   1.6      Leave of Absence..............................................    7
   1.7      Term of Plan..................................................    7
   1.8      Amendment and Discontinuance of the Plan......................    7

ARTICLE II NON-QUALIFIED OPTIONS..........................................    8
   2.1      Eligibility...................................................    8
   2.2      Exercise Price................................................    8
   2.3      Terms and Conditions of Non-Qualified Options.................    8
   2.4      Option Repricing..............................................   10
   2.5      Vesting.......................................................   10

ARTICLE III NON-EMPLOYEE DIRECTOR OPTIONS.................................   10
   3.1      Eligibility and Maximum.......................................   10
   3.2      Grants of Non-Employee Director Options.......................   10
   3.3      Exercise Price................................................   10
   3.4      Vesting.......................................................   10

ARTICLE IV INCENTIVE OPTIONS..............................................   11
</TABLE>

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<TABLE>
<S>                                                                          <C>
   4.1      Eligibility...................................................   11
   4.2      Exercise Price................................................   11
   4.3      Dollar Limitation.............................................   11
   4.4      10% Stockholder...............................................   11
   4.5      Incentive Options Not Transferable............................   11
   4.6      Compliance with Code Section 422..............................   11
   4.7      Limitations on Exercise.......................................   12

ARTICLE V PURCHASED STOCK.................................................   12
   5.1      Eligibility...................................................   12
   5.2      Purchase Price................................................   12
   5.3      Payment of Purchase Price.....................................   12

ARTICLE VI BONUS STOCK....................................................   12

ARTICLE VII STOCK APPRECIATION RIGHTS AND PHANTOM STOCK...................   12
   7.1      Stock Appreciation Rights.....................................   12
   7.2      Phantom Stock Awards..........................................   13

ARTICLE VIII RESTRICTED STOCK.............................................   14
   8.1      Eligibility...................................................   14
   8.2      Restrictions, Restricted Period and Vesting...................   14
   8.3      Forfeiture of Restricted Stock................................   15
   8.4      Delivery of Shares of Common Stock............................   15

ARTICLE IX PERFORMANCE AWARDS.............................................   15
   9.1      Performance Awards............................................   15
   9.2      Performance Goals.............................................   15

ARTICLE X OTHER STOCK OR PERFORMANCE-BASED AWARDS.........................   17

ARTICLE XI CERTAIN PROVISIONS APPLICABLE TO ALL AWARDS....................   17
</TABLE>

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<TABLE>
<S>                                                                          <C>
   11.1     General.......................................................   17
   11.2     Stand-Alone, Additional, Tandem and Substitute Awards.........   18
   11.3     Term of Awards................................................   18
   11.4     Form and Timing of Payment under Awards; Deferrals............   18
   11.5     Vested and Unvested Awards....................................   19
   11.6     Exemptions from Section 16(b) Liability.......................   19
   11.7     Securities Requirements.......................................   19
   11.8     Transferability...............................................   20
   11.9     Rights as a Stockholder.......................................   20
   11.10    Listing and Registration of Shares of Common Stock............   20
   11.11    Termination of Employment, Death, Disability and Retirement...   21
   11.12    Change in Control.............................................   22

ARTICLE XII WITHHOLDING FOR TAXES.........................................   23

ARTICLE XIII MISCELLANEOUS................................................   23
   13.1     No Rights to Awards or Uniformity Among Awards................   23
   13.2     Conflicts with Plan...........................................   23
   13.3     No Right to Employment........................................   23
   13.4     Governing Law.................................................   24
   13.5     Gender, Tense and Headings....................................   24
   13.6     Severability..................................................   24
   13.7     Other Laws....................................................   24
   13.8     Shareholder Agreements........................................   24
   13.9     Funding.......................................................   24
   13.10    No Guarantee of Tax Consequences..............................   24
</TABLE>

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                           SECOND AMENDED AND RESTATED
                           2004 WCA WASTE CORPORATION
                                 INCENTIVE PLAN
                         (EFFECTIVE SEPTEMBER 15, 2006)

                                    ARTICLE I
                                  INTRODUCTION

     1.1 PURPOSE. The Second Amended and Restated 2004 WCA Waste Corporation
Incentive Plan (the "Plan") is intended to promote the interests of WCA Waste
Corporation, a Delaware corporation (the "Company"), and its stockholders by
encouraging Employees, Consultants and Non-Employee Directors of the Company or
its Affiliates (as defined below) to acquire or increase their equity interests
in the Company, thereby giving them an added incentive to work toward the
continued growth and success of the Company. The Board of Directors of the
Company (the "Board") also contemplates that through the Plan, the Company and
its Affiliates will be better able to compete for the services of the
individuals needed for the continued growth and success of the Company. The Plan
provides for payment of various forms of incentive compensation, and
accordingly, is not intended to be a plan that is subject to the Employee
Retirement Income Security Act of 1974, as amended, and shall be administered
accordingly.

     1.2 DEFINITIONS. As used in the Plan, the following terms shall have the
meanings set forth below:

     "Affiliate" means (i) any entity in which the Company, directly or
indirectly, owns 50% or more of the combined voting power, as determined by the
Committee, (ii) any "parent corporation" of the Company (as defined in section
424(e) of the Code), (iii) any "subsidiary corporation" of any such parent
corporation (as defined in section 424(f) of the Code) of the Company and (iv)
any trades or businesses, whether or not incorporated which are members of a
controlled group or are under common control (as defined in Sections 414(b) or
(c) of the Code) with the Company.

     "Awards" means, collectively, Options, Purchased Stock, Bonus Stock, Stock
Appreciation Rights, Phantom Stock, Restricted Stock, Performance Awards, or
Other Stock or Performance-Based Awards.

     "Board" means the board of directors described in Section 1.1 of the Plan.

     "Bonus Stock" means Common Stock described in Article VI of the Plan.

     "Change of Control" shall be deemed to have occurred upon any of the
following events:

     (a) any "person" (as defined in Section 3(a)(9) of the Exchange Act, and as
modified in Section 13(d) and 14(d) of the Exchange Act) other than (i) the
Company or any of its subsidiaries, (ii) any employee benefit plan of the
Company or any of its subsidiaries, (iii) any

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Affiliate, (iv) a company owned, directly or indirectly, by stockholders of the
Company in substantially the same proportions as their ownership of the Company
or (v) an underwriter temporarily holding securities pursuant to an offering of
such securities (a "Person"), becomes the "beneficial owner" (as defined in Rule
13d-3 of the Exchange Act), directly or indirectly, of securities of the Company
representing more than 50% of the shares of voting stock of the Company then
outstanding;

     (b) the consummation of any merger, organization, business combination or
consolidation of the Company or one of its subsidiaries with or into any other
entity, other than a merger, reorganization, business combination or
consolidation which would result in the holders of the voting securities of the
Company outstanding immediately prior thereto holding securities which represent
immediately after such merger, reorganization, business combination or
consolidation more than 50% of the combined voting power of the voting
securities of the Company or the surviving company or the parent of such
surviving company;

     (c) the consummation of a sale or disposition by the Company of all or
substantially all of the Company's assets, other than a sale or disposition if
the holders of the voting securities of the Company outstanding immediately
prior thereto hold securities immediately thereafter which represent more than
50% of the combined voting power of the voting securities of the acquiror, or
parent of the acquiror, of such assets;

     (d) the stockholders of the Company approve a plan of complete liquidation
or dissolution of the Company; or

     (e) individuals who, as of the Effective Date, constitute the Board (the
"Incumbent Board") cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to
the Effective Date whose election by the Board, was approved by a vote of at
least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an election contest with respect to the election or
removal of directors or other solicitation of proxies or consents by or on
behalf of a person other than the Board.

     Solely with respect to any Award that is subject to Section 409A of the
Code, this definition is intended to comply with the definition of change in
control under Section 409A of the Code as in effect commencing January 1, 2005
and, to the extent that the above definition does not so comply, such definition
shall be void and of no effect and, to the extent required to ensure that this
definition complies with the requirements of Section 409A of the Code, the
definition of such term set forth in regulations or other regulatory guidance
issued under Section 409A of the Code by the appropriate governmental authority
is hereby incorporated by reference into and shall form part of this Plan as
fully as if set forth herein verbatim and the Plan shall be operated in
accordance with the above definition of Change in Control as modified to the
extent necessary to ensure that the above definition complies with the
definition prescribed in such regulations or other regulatory guidance insofar
as the definition relates to any Award that is subject to Section 409A of the
Code.

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     "Code" means the Internal Revenue Code of 1986, as amended from time to
time, and the rules and regulations thereunder.

     "Committee" means the compensation committee of the Board which shall
consist of not less than two independent members of the Board, each of whom
shall qualify as a "non-employee director" (as that term is defined in Rule
16b-3 of the General Rules and Regulations under the Exchange Act) appointed by
and serving at the pleasure of the Board to administer the Plan or, if none, the
independent members of the Board; provided, however, that with respect to any
Award granted to a Covered Employee which is intended to be "performance-based
compensation" as described in Section 162(m)(4)(C) of the Code, the Committee
shall consist solely of two or more "outside directors" as described in Section
162(m)(4)(C)(i) of the Code.

     "Common Stock" means the common stock, $.01 par value per share, of the
Company.

     "Company" means the corporation described in Section 1.1 of the Plan or any
successor thereto which assumes and continues the Plan.

     "Consultant" means any individual, other than a Director or an Employee,
who renders consulting or advisory services to the Company or an Affiliate,
provided that such services are not in connection with the offer or sale of
securities in a capital-raising transaction.

     "Covered Employee" shall mean any of the Chief Executive Officer of the
Company and the four highest paid officers of the Company other than the Chief
Executive Officer, as described in Section 162(m)(3) of the Code.

     "Disability" means an inability to perform the Employee's or Non-Employee
Director's material services for the Company for a period of 90 consecutive days
or a total of 180 days, during any 365-day period, in either case as a result of
incapacity due to mental or physical illness, which is determined to be total
and permanent. A determination of Disability shall be made by a physician
satisfactory to both the Participant (or his guardian) and the Company, provided
that if the Employee or Non-Employee Director (or his guardian) and the Company
do not agree on a physician, the Employee or Non-Employee Director and the
Company shall each select a physician and these two together shall select a
third physician, whose determination as to Disability shall be final, binding
and conclusive with respect to all parties. Notwithstanding the above,
eligibility for disability benefits under any policy for long-term disability
benefits provided to the Participant by the Company shall conclusively establish
the Participant's disability. Notwithstanding the above, eligibility for
disability benefits under any policy for long-term disability benefits provided
to the Participant by the Company shall conclusively establish the Participant's
disability. Solely with respect to any Award that is subject to Section 409A of
the Code, this definition is intended to comply with the definition of
disability under Section 409A of the Code as in effect commencing January 1,
2005 and, to the extent that the above definition does not so comply, such
definition shall be void and of no effect and, to the extent required to ensure
that this definition complies with the requirements of Section 409A of the Code,
the definition of such term set forth in regulations or other regulatory
guidance issued under Section 409A of the Code by the appropriate governmental
authority is hereby incorporated by reference into and shall form part of this
Plan as fully as if set forth herein verbatim and the Plan shall be operated in
accordance with the above definition of Disability as

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modified to the extent necessary to ensure that the above definition complies
with the definition prescribed in such regulations or other regulatory guidance
insofar as the definition relates to any Award that is subject to Section 409A
of the Code.

     "Effective Date" means, with respect to the Plan, the date that the Plan is
(a) adopted by the Board and (b) approved by shareholders of the Company,
provided that such shareholder approval occurs not more than one year prior to
or after the date of such adoption. The Effective Date of the Plan as amended
and restated shall be September 15, 2006 unless otherwise indicated.

     "Employee" means any employee of the Company or an Affiliate.

     "Employment" includes any period in which a Participant is an Employee of
the Company or an Affiliate.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     "Fair Market Value" or "FMV Per Share" mean, with respect to shares of
Common Stock, the fair market value of such shares determined in good faith by
the Committee, which may be conclusively deemed by the Committee to be the
closing sales price (or, if applicable, the highest reported bid price) of a
share of Common Stock on the applicable date (or if there is no trading in the
Common Stock on such date, on the next preceding date on which there was
trading) as reported in The Wall Street Journal (or other reporting service
approved by the Committee). If such shares are not publicly traded at the time a
determination of its fair market value is required to be made hereunder, the
determination of fair market value shall be made in good faith by the Committee
using any fair and reasonable means selected in the Committee's discretion.

     "Incentive Option" means any option that satisfies the requirements of Code
Section 422 and is granted pursuant to Article IV of the Plan.

     "Incumbent Board" means the Board described in paragraph (e) of the
definition of Change of Control under Section 1.2 of the Plan.

     "Non-Employee Director" means a person who is a member of the Board but who
is neither an Employee nor a Consultant of the Company or any Affiliate.

     "Non-Employee Director Option" means an option not intended to satisfy the
requirements of Code Section 422 and which is granted pursuant to Article III of
the Plan.

     "Non-Qualified Option" means an option not intended to satisfy the
requirements of Code Section 422 and which is granted pursuant to Article II of
the Plan.

     "Option" means an option to acquire Common Stock granted pursuant to the
provisions of the Plan, and refers to either an Incentive Stock Option or a
Non-Qualified Stock Option, or both, as applicable.

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     "Option Expiration Date" means the date determined by the Committee, which
shall not be more than ten years after the date of grant of an Option.

     "Optionee" means a Participant who has received or will receive an Option.

     "Other Stock or Performance-Based Award" means an award granted pursuant to
Article X of the Plan that is not otherwise specifically provided for, the value
of which is based in whole or in part upon the value of a share of Common Stock.

     "Participant" means any Non-Employee Director, Employee or Consultant
granted an Award under the Plan.

     "Performance Award" means an Award granted pursuant to Article IV of the
Plan, which, if earned, shall be payable in shares of Common Stock, cash or any
combination thereof as determined by the Committee.

     "Phantom Stock" means an Award, granted pursuant to Article VII of the
Plan, of the right to receive (a) shares of Common Stock issued at the end of a
Restricted Period, (b) the Fair Market Value of shares of Common Stock paid in
cash at the end of a Restricted Period or (c) a combination of shares of Common
Stock and cash, as determined by the Committee, at the end of a Restricted
Period.

     "Plan" means the plan described in Section 1.1 of the Plan and set forth in
this document, as amended from time to time.

     "Purchased Stock" means a right to purchase Common Stock granted pursuant
to Article V of the Plan.

     "Restricted Period" means the period established by the Committee with
respect to an Award during which the Award either remains subject to forfeiture
or is not exercisable by the Participant.

     "Restricted Stock" means one or more shares of Common Stock, prior to the
lapse of restrictions thereon, granted under Article VIII of the Plan.

     "Retirement" means termination of Employment of an Employee, or if
determined by the Committee, termination of service of a Non-Employee Director,
under circumstances as shall constitute retirement, as determined by the
Committee.

     "Securities Act" means the Securities Act of 1933, as amended.

     "Spread" means the amount determined pursuant to Section 7.1(a) of the
Plan.

     "Stock Appreciation Rights" means an Award granted pursuant to Article VII
of the Plan.

     1.3 SHARES SUBJECT TO THE PLAN. The maximum number of shares of Common
Stock that may be issued under the Plan shall be 2,250,000 shares. In addition,
during any calendar year, the number of shares of Common Stock reserved for
issuance under the Plan which are

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subject to Options that may be granted to any one Participant plus the number of
such shares underlying Stock Appreciation Rights that may be granted to that
same Participant shall not exceed 200,000 shares.

     Notwithstanding the above, in the event that at any time after the
Effective Date the outstanding shares of Common Stock are changed into or
exchanged for a different number or kind of shares or other securities of the
Company by reason of a merger, consolidation, recapitalization,
reclassification, stock split, stock dividend, combination of shares or the
like, the aggregate number and class of securities available under the Plan
shall be ratably adjusted by the Committee. Upon the occurrence of any of the
events described in the immediately preceding sentence, in order to ensure that
after such event the shares of Common Stock subject to the Plan and each
Participant's proportionate interest shall be maintained substantially as before
the occurrence of such event, the Committee shall, in such manner as it may deem
equitable, adjust (a) the number of shares of Common Stock with respect to which
Awards may be granted, (b) the number of shares of Common Stock subject to
outstanding Awards and (c) the grant or exercise price with respect to an Award.
Such adjustment in an outstanding Option shall be made (i) without change in the
total price applicable to the Option or any unexercised portion of the Option
(except for any change in the aggregate price resulting from rounding-off of
share quantities or prices) and (ii) with any necessary corresponding adjustment
in exercise price per share. The Committee's determinations shall be final,
binding and conclusive with respect to the Company and all other interested
persons.

     In the event the number of shares to be delivered upon the exercise or
payment of any Award granted under the Plan is reduced for any reason other than
the withholding of shares or the payment of taxes or exercise price, or in the
event any Award (or portion thereof) granted under the Plan can no longer under
any circumstances be exercised or paid, the number of shares no longer subject
to such Award shall thereupon be released from such Award and shall thereafter
be available under the Plan for the grant of additional Awards. Shares that
cease to be subject to an Award because of the exercise of the Award, or the
vesting of a Restricted Stock Award or similar Award, shall no longer be subject
to or available for any further grant under the Plan. Shares issued pursuant to
the Plan (x) may be treasury shares, authorized but unissued shares or, if
applicable, shares acquired in the open market and (y) shall be fully paid and
nonassessable. No fractional shares shall be issued under the Plan. Payment for
any fractional shares that would otherwise be issuable hereunder in the absence
of the immediately preceding sentence shall be made in cash.

     1.4 ADMINISTRATION OF THE PLAN.

     (a) Committee, Meetings, Rule Making and Interpretations. The Plan shall be
administered by the Committee. Subject to the provisions of the Plan, the
Committee shall (i) interpret the Plan and all Awards under the Plan, (ii) make,
amend and rescind such rules as it deems necessary for the proper administration
of the Plan, (iii) make all other determinations necessary or advisable for the
administration of the Plan and (iv) correct any defect or supply any omission or
reconcile any inconsistency in the Plan or in any Award under the Plan in the
manner and to the extent that the Committee deems desirable to effectuate the
Plan. Any action taken or determination made by the Committee pursuant to this
and the other paragraphs of the

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Plan shall be final, binding and conclusive on all affected persons, including,
without limitation, the Company, any Affiliate, any grantee, holder or
beneficiary of an Award, any stockholder and any Employee, Consultant or
Non-Employee Director. No member of the Board or the Committee shall be liable
for any action or determination made in good faith with respect to the Plan or
any Award granted hereunder, and the members of the Board and the Committee
shall be entitled to indemnification and reimbursement by the Company and its
Affiliates in respect of any claim, loss, damage or expense (including legal
fees) arising therefrom to the fullest extent permitted by law.

     1.5 GRANTING OF AWARDS TO PARTICIPANTS. The Committee shall have the
authority to grant, prior to the expiration date of the Plan, Awards to such
Employees, Consultants and Non-Employee Directors as may be selected by it,
subject to the terms and conditions set forth in the Plan. In selecting the
persons to receive Awards, including the type and size of the Award, the
Committee may consider the contribution the recipient has made and/or may make
to the growth of the Company or its Affiliates and any other factors that it may
deem relevant. No member of the Committee shall vote or act upon any matter
relating solely to himself. Grants of Awards to members of the Committee must be
ratified by the Board. In no event shall any Employee, Consultant or
Non-Employee Director, nor his or its legal representatives, heirs, legatees,
distributees or successors have any right to participate in the Plan, except to
such extent, if any, as permitted under the Plan and as the Committee may
determine.

     1.6 LEAVE OF ABSENCE. If an employee is on military, sick leave or other
bona fide leave of absence, such person shall be considered an "Employee" for
purposes of an outstanding Award during the period of such leave, provided that
it does not exceed 90 days (or such longer period as may be determined by the
Committee in its sole discretion), or, if longer, so long as the person's right
to reemployment is guaranteed either by statute or by contract. If the period of
leave exceeds 90 days (or such longer period as may be determined by the
Committee in its sole discretion), the employment relationship shall be deemed
to have terminated on the ninety-first (91st) day (or the first day immediately
following any period of leave in excess of 90 days as approved by the Committee)
of such leave, unless the person's right to reemployment is guaranteed by
statute or contract.

     1.7 TERM OF PLAN. If not sooner terminated under the provisions of Section
1.8, the Plan shall terminate upon, and no further Awards shall be made after,
June 1, 2015.

     1.8 AMENDMENT AND DISCONTINUANCE OF THE PLAN. The Board may amend, suspend
or terminate the Plan at any time without prior notice to or consent of any
person; provided, however, that subject to Section 11.12, no amendment,
suspension or termination of the Plan may without the consent of the holder of
an Award, terminate such Award or adversely affect such person's rights with
respect to such Award in any material respect; and provided further that no
amendment shall be effective prior to its approval by the stockholders of the
Company, to the extent such approval is required by (a) applicable legal
requirements, (b) the requirements of any securities exchange on which the
Company's stock may be listed or (c) the requirements of the Nasdaq Stock
Market, Inc. on which the Company's stock may be listed. Notwithstanding the
foregoing, the Board may amend the Plan in such manner as it deems necessary in
order to

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permit Awards to meet the requirements of the Code or other applicable laws, or
to prevent adverse tax consequences to the Participants.

                                   ARTICLE II
                              NON-QUALIFIED OPTIONS

     2.1 ELIGIBILITY. The Committee may grant Non-Qualified Options to purchase
shares of Common Stock to any Employee, Consultant and Non-Employee Directors
according to the terms set forth below. Each Non-Qualified Option granted under
the Plan shall be evidenced by a written agreement between the Company and the
individual to whom such Non-Qualified Option was granted in such form as the
Committee shall provide.

     2.2 EXERCISE PRICE. The exercise price to be paid for each share of Common
Stock deliverable upon exercise of each Non-Qualified Option granted under this
Article II shall not be less than one hundred percent (100%) of the FMV Per
Share on the date of grant of such Non-Qualified Option. The exercise price for
each Non-Qualified Option granted under Article II shall be subject to
adjustment as provided in Section 2.3(e) of the Plan.

     2.3 TERMS AND CONDITIONS OF NON-QUALIFIED OPTIONS. Non-Qualified Options
shall be in such form as the Committee may from time to time approve, shall be
subject to the following terms and conditions and may contain such additional
terms and conditions, not inconsistent with this Article II, as the Committee
shall deem desirable:

     (a) Option Period and Conditions and Limitations on Exercise. No
Non-Qualified Option shall be exercisable later than the Option Expiration Date.
To the extent not prohibited by other provisions of the Plan, each Non-Qualified
Option shall be exercisable at such time or times as the Committee, in its
discretion, may determine at the time such Non-Qualified Option is granted.

     (b) Manner of Exercise. In order to exercise a Non-Qualified Option, the
person or persons entitled to exercise such Non-Qualified Option shall deliver
to the Company payment in full for (i) the shares being purchased and (ii)
unless other arrangements have been made with the Committee, any required
withholding taxes. The payment of the exercise price for each Non-Qualified
Option shall either be (x) in cash or by check payable and acceptable to the
Company, (y) with the consent of the Committee, which consent may be granted or
withheld in the Committee's sole discretion, by tendering to the Company shares
of Common Stock owned by the person for more than six months having an aggregate
Fair Market Value as of the date of exercise that is not greater than the full
exercise price for the shares with respect to which the Non-Qualified Option is
being exercised and by paying any remaining amount of the exercise price as
provided in (x) above or (z) with the consent of the Committee, which may be
granted or withheld in the Committee's sole discretion, and upon compliance with
such instructions as the Committee may specify, at the person's written request
the Company may deliver certificates for the shares of Common Stock for which
the Non-Qualified Option is being exercised to a broker for sale on behalf of
the person, provided that the person has irrevocably instructed such broker to
remit directly to the Company on the person's behalf from the proceeds of such
sale the full amount of the exercise price, plus all required withholding taxes.
In the event that the person elects to make payment as allowed under clause (y)
above, the Committee may, upon confirming

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that the Optionee owns the number of shares being tendered, authorize the
issuance of a new certificate for the number of shares being acquired pursuant
to the exercise of the Non-Qualified Option, less the number of shares being
tendered upon the exercise and return to the person (or to require surrender of)
the certificate for the shares being tendered upon the exercise. If the
Committee so requires, such person or persons shall also deliver a written
representation that all shares being purchased are being acquired for investment
and not with a view to, or for resale in connection with, any distribution of
such shares.

     (c) Proceeds. The proceeds received from the sale of shares of Common Stock
pursuant to exercise of Non-Qualified Options exercised under the Plan will be
used for general corporate purposes.

     (d) Non-Qualified Options not Transferable. Except as provided below, no
Non-Qualified Option granted hereunder shall be transferable other than by (i)
will or by the laws of descent and distribution or (ii) pursuant to a domestic
relations order, and during the lifetime of the Participant to whom any such
Non-Qualified Option is granted, it shall be exercisable only by the Participant
(or his guardian). Any attempt to transfer, assign, pledge, hypothecate or
otherwise dispose of, or to subject to execution, attachment or similar process,
any Non-Qualified Option granted hereunder, or any right thereunder, contrary to
the provisions hereof, shall be void and ineffective, shall give no right to the
purported transferee and shall, at the sole discretion of the Committee, result
in forfeiture of the Non-Qualified Option with respect to the shares involved in
such attempt. With respect to a specific Non-Qualified Option, in accordance
with rules and procedures established by the Committee from time to time, the
Participant (or his guardian) may transfer, for estate planning purposes, all or
part of such Non-Qualified Option to one or more immediate family members or
related family trusts or partnerships or similar entities as determined by the
Committee. Any Non-Qualified Option that is transferred in accordance with the
provisions of this Section 2.3(d) may only be exercised by the person or persons
who acquire a proprietary interest in the Non-Qualified Options pursuant to the
transfer.

     (e) Adjustment of Non-Qualified Options. In the event that at any time
after the Effective Date the outstanding shares of Common Stock are changed into
or exchanged for a different number or kind of shares or other securities of the
Company by reason of merger, consolidation, recapitalization, reclassification,
stock split, stock dividend, combination of shares or the like, the Committee
shall make appropriate and equitable adjustments to all Non-Qualified Options
then outstanding as provided in Section 1.3.

     (f) Listing and Registration of Shares. Each Non-Qualified Option shall be
subject to the requirement that if at any time the Committee determines, in its
discretion, that the listing, registration or qualification of the shares
subject to such Non-Qualified Option under any securities exchange or under any
state or federal law, or the consent or approval of any governmental regulatory
body, is necessary or desirable as a condition of, or in connection with, the
issue or purchase of shares thereunder, such Non-Qualified Option may not be
exercised in whole or in part unless such listing, registration, qualification,
consent or approval shall have been effected or obtained and the same shall have
been free of any conditions not acceptable to the Committee.

                                       9

<PAGE>

     2.4 OPTION REPRICING. With shareholder approval, the Committee, in its
absolute discretion, may grant to holders of outstanding Non-Qualified Options,
in exchange for the surrender and cancellation of such Non-Qualified Options,
new Non-Qualified Options having exercise prices lower (or higher with any
required consent) than the exercise price provided in the Non-Qualified Options
so surrendered and canceled and containing such other terms and conditions as
the Committee may deem appropriate.

     2.5 VESTING. See Section 11.11 of the Plan for provisions on vesting in
connection with termination of Employment or service. Also, see Section 11.12 of
the Plan relating to vesting in connection with a Change of Control.

                                   ARTICLE III
                          NON-EMPLOYEE DIRECTOR OPTIONS

     The terms specified in this Article III shall be applicable to all
Non-Employee Director Options. Except as modified by the provisions of this
Article III, all the provisions of Article II shall be applicable to
Non-Employee Director Options.

     3.1 ELIGIBILITY AND MAXIMUM. Non-Employee Director Options may only be
granted to Non-Employees Directors, and in the aggregate the maximum number of
shares of Common Stock that may be issued pursuant to Non-Employee Director
Options shall be 150,000 shares (out of the number set forth in Section 1.3 of
the Plan).

     3.2 GRANTS OF NON-EMPLOYEE DIRECTOR OPTIONS. The Board or the Committee
may, from time to time, make additional grants of Non-Employee Director Options.

     3.3 EXERCISE PRICE. The exercise price to be paid for each share of Common
Stock deliverable upon exercise of each Non-Employee Director Option granted
under this Article III shall be the FMV Per Share on the date of grant of such
Non-Employee Director Option. The exercise price for each Non-Employee Director
Option granted under this Article III shall be subject to adjustment as provided
in Section 2.3(e) of the Plan.

     3.4 VESTING. Each Non-Employee Director Option shall be subject to a
three-year vesting schedule, pursuant to which one-third of such Non-Employee
Director Option shall become vested on the first (1st) anniversary of the date
of grant, one-third of such Non-Employee Director Option shall become vested on
the second (2nd) anniversary of the date of grant and the remaining one-third of
such Non-Employee Director Option shall become vested on the third (3rd)
anniversary of the date of grant; provided, however, that in the event that an
incumbent Non-Employee Director is not nominated for election to an additional
term as a director, all Non-Employee Director Options held by such incumbent
Non-Employee Director shall immediately vest in full upon the expiration of his
then-current term of office. In addition to the foregoing, all Non-Employee
Director Options shall be subject to the provisions of Section 11.11 and Section
11.12 to the extent such provisions do not conflict with the provisions of this
Section 3.3.

                                       10

<PAGE>

                                   ARTICLE IV
                                INCENTIVE OPTIONS

     The terms specified in this Article IV shall be applicable to all Incentive
Options. Except as modified by the provisions of this Article IV, all the
provisions of Article II shall be applicable to Incentive Options. Options which
are specifically designated as Non-Qualified Options shall NOT be subject to the
terms of this Article IV.

     4.1 ELIGIBILITY. Incentive Options may only be granted to Employees of the
Company or its parent or subsidiary as defined in Sections 424(e) or (f) of the
Code, as applicable, while each such entity is a "corporation" described in
Section 7701(a)(3) of the Code and Treas. Reg. Section 1.421-1(i)(1).

     4.2 EXERCISE PRICE. Subject to Section 4.4, the exercise price per share
shall not be less than one hundred percent (100%) of the FMV Per Share on the
date of grant of the Incentive Option.

     4.3 DOLLAR LIMITATION. The aggregate Fair Market Value (determined as of
the respective date or dates of grant) of shares of Common Stock for which one
or more Options granted to any Employee under the Plan (or any other option plan
of the Company or any Affiliate which is a parent or subsidiary as defined in
Code Sections 424(e) or (f), as applicable) may for the first time become
exercisable as Incentive Options during any one (1) calendar year shall not
exceed the sum of $100,000. To the extent the Employee holds two (2) or more
such Options which become exercisable for the first time in the same calendar
year, the foregoing limitation on the exercisability of such Options as
Incentive Options shall be applied on the basis of the order in which such
Options are granted.

     4.4 10% STOCKHOLDER. If any Employee to whom an Incentive Option is granted
owns stock possessing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or any "parent corporation" of the
Company (as defined in Section 424(e) of the Code) or any "subsidiary
corporation" of the Company (as defined in Section 424(f) of the Code), then the
exercise price per share under such Incentive Option shall not be less than one
hundred ten percent (110%) of the FMV Per Share on the date of grant, and the
Option term shall not exceed five (5) years measured from the date of grant. For
purposes of the immediately preceding sentence, the attribution rules under
Section 424(d) of the Code shall apply for purposes of determining an Employee's
ownership.

     4.5 INCENTIVE OPTIONS NOT TRANSFERABLE. No Incentive Option granted
hereunder (a) shall be transferable other than by will or by the laws of descent
and distribution and (b) except as permitted in regulations or other guidance
issued under Section 422 of the Code, shall be exercisable during the Optionee's
lifetime by any person other than the Optionee (or his guardian).

     4.6 COMPLIANCE WITH CODE SECTION 422. All Options that are intended to be
Incentive Stock Options described in Code Section 422 shall be designated as
such in the Option grant and in all respects shall be issued in compliance with
Code Section 422. No Incentive Stock Options will be granted after April 29,
2015.

                                       11

<PAGE>

     4.7 LIMITATIONS ON EXERCISE. No Incentive Option shall be exercisable more
than three (3) months after the Optionee ceases to be an Employee for any reason
other than death or Disability, or more than one (1) year after the Optionee
ceases to be an Employee due to death or Disability.

                                    ARTICLE V
                                 PURCHASED STOCK

     5.1 ELIGIBILITY. The Committee shall have the authority to sell shares of
Common Stock to such Employees, Consultants and Non-Employee Directors of the
Company or its Affiliates as may be selected by it, on such terms and conditions
as it may establish, subject to the further provisions of this Article V. Each
issuance of Common Stock under this Article V shall be evidenced by an
agreement, which shall be subject to applicable provisions of this Plan and to
such other provisions not inconsistent with this Plan as the Committee may
approve for the particular sale transaction.

     5.2 PURCHASE PRICE. The price per share of Common Stock to be purchased by
a Participant under this Article V shall be determined in the sole discretion of
the Committee, and may be less than, but shall not greater than the FMV Per
Share at the time of purchase.

     5.3 PAYMENT OF PURCHASE PRICE. Payment of the purchase price of Purchased
Stock under this Article V shall be made in full in cash.

                                   ARTICLE VI
                                   BONUS STOCK

     The Committee may, from time to time and subject to the provisions of the
Plan, grant shares of Bonus Stock to Employees, Consultants and Non-Employee
Directors. Such grants of Bonus Stock shall be in consideration of performance
of services by the Participant without additional consideration, except as may
be required by the Committee or pursuant to Section 11.1. Bonus Stock shall be
shares of Common Stock that are not subject to a Restricted Period under Article
VIII.

                                   ARTICLE VII
                   STOCK APPRECIATION RIGHTS AND PHANTOM STOCK

     7.1 STOCK APPRECIATION RIGHTS. The Committee is authorized to grant Stock
Appreciation Rights to Employees, Consultants and Non-Employee Directors on the
following terms and conditions.

     (a) Right to Payment. A Stock Appreciation Right shall confer on the
Participant to whom it is granted, upon exercise thereof, a right to receive
shares of Common Stock, the value of which is equal to the excess of (i) the FMV
Per Share on the date of exercise over (ii) the FMV Per Share on the date of the
grant (such excess, the "Spread"). Notwithstanding the foregoing, the Committee
may provide, in its sole discretion, that the Spread covered by a Stock
Appreciation Right may not exceed a specified amount.

                                       12

<PAGE>

     (b) Terms. The Committee shall determine at the date of grant the time or
times at which and the circumstances under which a Stock Appreciation Right may
be exercised in whole or in part (including based on achievement of performance
goals and/or future service requirements), the method of exercise, and any other
terms and conditions of any Stock Appreciation Right; provided, however, a Stock
Appreciation Right shall not be granted in tandem or in combination with any
other Award if that would (i) cause application of Section 409A of the Code to
the Award or (ii) result in adverse tax consequences under Section 409A of the
Code should that Code section apply to the Award.

     7.2 PHANTOM STOCK AWARDS. Subject to Section 11.5 of the Plan, the
Committee is authorized to grant Phantom Stock Awards to Employees, Consultants
and Non-Employee Directors, which are rights to receive cash equal to the Fair
Market Value of a specified number of shares of Common Stock at the end of a
specified deferral period, subject to the following terms and conditions:

     (a) Award and Restrictions. Satisfaction of a Phantom Stock Award shall
occur upon expiration of the deferral period specified for such Phantom Stock
Award by the Committee or, if permitted by the Committee, as elected by the
Participant. In addition, Phantom Stock Awards shall be subject to such
restrictions (which may include a risk of forfeiture), if any, as the Committee
may impose in its sole discretion as set forth in the Award, which restrictions
may lapse at the expiration of the deferral period or at earlier specified times
(including times based on achievement of performance goals and/or future service
requirements), separately or in combination, as the Committee may determine in
its sole discretion to be appropriate or advisable for any Award; provided,
however, that Phantom Stock Awards shall not be transferable (other than by will
or the laws of descent and distribution).

     (b) Forfeiture. Except as otherwise determined by the Committee or as may
be set forth in any Award, employment or other agreement pertaining to a Phantom
Stock Award, upon termination of employment or services during the applicable
deferral period or portion thereof to which forfeiture conditions apply, all
Phantom Stock Awards that are at that time subject to deferral (other than a
deferral at the election of the Participant) shall be forfeited; provided,
however, that the Committee may provide, by rule or regulation or in any Award
agreement, or may determine in any individual case, that restrictions or
forfeiture conditions relating to Phantom Stock Awards shall be waived in whole
or in part in the event of terminations resulting from specified causes, and the
Committee may in other cases which it determines appropriate or advisable waive
in whole or in part the forfeiture of Phantom Stock Awards; provided, however,
no such waiver or other change regarding an Award shall (i) cause the
application of Section 162(m) or 409A of the Code to the Award or (ii) create
adverse tax consequences under Section 162(m) or 409A of the Code should either
or both of those Code sections apply to the Award.

     (c) Performance Goals. To the extent the Committee determines that any
Award granted pursuant to this Article VII shall constitute performance-based
compensation for purposes of Section 162(m) of the Code, the grant or settlement
of the Award shall, in the Committee's discretion, be subject to the achievement
of performance goals determined and applied in a manner consistent with Section
9.2.

                                       13

<PAGE>

     (d) Additional Limitations. Notwithstanding any other provision of this
Section 7.2 to the contrary, any such Phantom Stock Award granted under the Plan
shall contain terms that (i) are designed to avoid application of Section 409A
of the Code to the Award or (ii) are designed to avoid adverse tax consequences
under Section 409A of the Code should that Code section apply to the Award.

                                  ARTICLE VIII
                                RESTRICTED STOCK

     8.1 ELIGIBILITY. All Employees, Consultants and Non-Employee Directors
shall be eligible for grants of Restricted Stock.

     8.2 RESTRICTIONS, RESTRICTED PERIOD AND VESTING.

     (a) The Restricted Stock shall be subject to such forfeiture restrictions
(including, without limitation, limitations that qualify as a "substantial risk
of forfeiture" within the meaning given to that term under Section 83 of the
Code) and restrictions on transfer by the Participant and repurchase by the
Company as the Committee, in its sole discretion, shall determine. Prior to the
lapse of such restrictions, the Participant shall not be permitted to transfer
such shares. The Company shall have the right to repurchase or recover such
shares for the amount of cash paid therefor, if any, if (i) the Participant
shall terminate Employment from or services to the Company prior to the lapse of
such restrictions or (ii) the Restricted Stock is forfeited by the Participant
pursuant to the terms of the Award.

     (b) Vesting. See Section 11.11 of the Plan for provisions on vesting in
connection with termination of Employment or service. Also, see Section 11.12 of
the Plan relating to vesting in connection with a Change of Control.

     (c) Immediate Transfer Without Immediate Delivery of Restricted Stock. Each
certificate representing Restricted Stock awarded under the Plan shall be
registered in the name of the Participant and, during the Restricted Period,
shall be left on deposit with the Company, or in trust or escrow pursuant to an
agreement satisfactory to the Committee, along with a stock power endorsed in
blank until such time as the restrictions on transfer have lapsed. The grantee
of Restricted Stock shall have all the rights of a stockholder with respect to
such shares including the right to vote and the right to receive dividends or
other distributions paid or made with respect to such shares; provided, however,
that the Committee may in the Award restrict the Participant's right to
dividends until the restrictions on the Restricted Stock lapse. Any certificate
or certificates representing shares of Restricted Stock shall bear a legend
similar to the following:

          The shares represented by this certificate have been issued pursuant
          to the terms of the 2004 WCA Waste Corporation Incentive Plan, as
          amended and restated, and may not be sold, pledged, transferred,
          assigned or otherwise encumbered in any manner except as is set forth
          in the terms of such award dated _______________, 200___.

                                       14

<PAGE>

     8.3 FORFEITURE OF RESTRICTED STOCK. If, for any reason, the restrictions
imposed by the Committee upon Restricted Stock are not satisfied at the end of
the Restricted Period, any Restricted Stock remaining subject to such
restrictions shall thereupon be forfeited by the Participant and reacquired by
the Company.

     8.4 DELIVERY OF SHARES OF COMMON STOCK. Pursuant to Section 11.5 of the
Plan and subject to the withholding requirements of Article XII of the Plan, at
the expiration of the Restricted Period, a stock certificate evidencing the
Restricted Stock (to the nearest full share) with respect to which the
Restricted Period has expired shall be delivered without charge to the
Participant, or his personal representative, free of all restrictions under the
Plan.

                                   ARTICLE IX
                               PERFORMANCE AWARDS

     9.1 PERFORMANCE AWARDS. The Committee may grant Performance Awards based on
performance goals as set forth in Section 7.2 measured over a period of not less
than six months and not more than ten years.

     9.2 PERFORMANCE GOALS. The grant and/or settlement of a Performance Award
shall be contingent upon terms set forth in this Section 9.2.

     (a) General. The performance goals for Performance Awards shall consist of
one or more business criteria and a targeted level or levels of performance with
respect to each of such criteria, as specified by the Committee. In the case of
any Award granted to a Covered Employee, performance goals shall be designed to
be objective and shall otherwise meet the requirements of Section 162(m) of the
Code and regulations thereunder (including Treasury Regulations sec. 1.162-27
and successor regulations thereto), including the requirement that the level or
levels of performance targeted by the Committee are such that the achievement of
performance goals is "substantially uncertain" at the time of grant. The
Committee may determine that such Performance Awards shall be granted and/or
settled upon achievement of any one performance goal or that two or more of the
performance goals must be achieved as a condition to the grant and/or settlement
of such Performance Awards. Performance goals may differ among Performance
Awards granted to any one Participant or for Performance Awards granted to
different Participants.

     (b) Business Criteria. One or more of the following business criteria for
the Company, on a consolidated basis, and/or for specified subsidiaries,
divisions or business or geographical units of the Company (except with respect
to the total stockholder return and earnings per share criteria), shall be used
by the Committee in establishing performance goals for Performance Awards
granted to a Participant: (i) earnings per share; (ii) increase in price per
share, (iii) increase in revenues; (iv) increase in cash flow; (v) return on net
assets; (vi) return on assets; (vii) return on investment; (viii) return on
equity; (ix) economic value added; (x) gross margin; (xi) net income; (xii)
pretax earnings; (xiii) pretax earnings before interest, depreciation, depletion
and amortization; (xiv) pretax operating earnings after interest expense and
before incentives, service fees, and extraordinary or special items; (xv)
operating income; (xvi) total stockholder return; (xvii) debt reduction; and
(xviii) any of the above goals determined on the absolute or relative basis or
as compared to the performance of a published or special index

                                       15

<PAGE>

deemed applicable by the Committee including, but not limited to, the Standard &
Poor's 500 Stock Index or components thereof or a group of comparable companies.

     (c) Performance Period; Timing for Establishing Performance Goals.
Achievement of performance goals in respect of Performance Awards shall be
measured over a performance period of not less than six months and not more than
ten years, as specified by the Committee. Performance goals in the case of any
Award granted to a Participant shall be established not later than 90 days after
the beginning of any performance period applicable to such Performance Awards,
or at such other date as may be required or permitted for "performance-based
compensation" under Section 162(m) of the Code.

     (d) Settlement of Performance Awards; Other Terms. After the end of each
performance period, the Committee shall determine the amount, if any, of
Performance Awards payable to each Participant based upon achievement of
business criteria over a performance period. Except as may otherwise be required
under Section 409A of the Code, payment described in the immediately preceding
sentence shall be made by the later of (i) the date that is 2 1/2 months after
the end of the Participant's first taxable year in which the Performance Award
is earned and payable under the Plan and (ii) the date that is 2 1/2 months
after the end of the Company's first taxable year in which the Performance Award
is earned and payable under the Plan, and such payment shall not be subject to
any election by the Participant to defer the payment to a later period. The
Committee may not exercise discretion to increase any such amount payable in
respect of a Performance Award which is intended to comply with Section 162(m)
of the Code. The Committee shall specify the circumstances in which such
Performance Awards shall be paid or forfeited in the event of termination of
employment by the Participant prior to the end of a performance period or
settlement of Performance Awards.

     (e) Written Determinations. All determinations by the Committee as to the
establishment of performance goals, the amount of any Performance Award and the
achievement of performance goals relating to Performance Awards shall be made in
a written agreement or other document covering the Performance Award. The
Committee may not delegate any responsibility relating to such Performance
Awards.

     (f) Status of Performance Awards under Section 162(m) of the Code. It is
the intent of the Company that Performance Awards granted to persons who are
designated by the Committee as likely to be Covered Employees within the meaning
of Section 162(m) of the Code and regulations thereunder (including Treasury
Regulations sec. 1.162-27 and successor regulations thereto) shall constitute
"performance-based compensation" within the meaning of Section 162(m) of the
Code and regulations thereunder. Accordingly, the terms of this Section 9.2
shall be interpreted in a manner consistent with Section 162(m) of the Code and
regulations thereunder. Notwithstanding the foregoing, because the Committee
cannot determine with certainty whether a given Participant will be a Covered
Employee with respect to a fiscal year that has not yet been completed, the term
Covered Employee as used herein shall mean only a person designated by the
Committee, at the time of grant of a Performance Award, who is likely to be a
Covered Employee with respect to that fiscal year. If any provision of the Plan
as in effect on the date of adoption or any agreements relating to Performance
Awards that are intended to comply with Section 162(m) of the Code does not
comply or is inconsistent with the

                                       16

<PAGE>

requirements of Section 162(m) of the Code or regulations thereunder, such
provision shall be construed or deemed amended to the extent necessary to
conform to such requirements.

                                    ARTICLE X
                     OTHER STOCK OR PERFORMANCE-BASED AWARDS

     The Committee is hereby authorized to grant to Employees, Non-Employee
Directors and Consultants of the Company or its Affiliates, Other Stock or
Performance-Based Awards, which shall consist of a right which (a) is not an
Award described in any other Article and (b) is denominated or payable in,
valued in whole or in part by reference to, or otherwise based on or related to,
shares of Common Stock (including, without limitation, units or securities
convertible into shares of Common Stock) or cash as are deemed by the Committee
to be consistent with the purposes of the Plan. Subject to the terms of the
Plan, the Committee shall determine the terms and conditions of any such Other
Stock or Performance-Based Awards, which shall be contained in a written
agreement or other document covering such Awards. Notwithstanding any other
provision of the Plan to the contrary, any Other Stock-Based Award granted after
December 31, 2004 shall contain terms that (i) are designed to avoid application
of Section 409A of the Code or (ii) are designed to avoid adverse tax
consequences under Section 409A should that Code section apply to such Award.

                                   ARTICLE XI
                   CERTAIN PROVISIONS APPLICABLE TO ALL AWARDS

     11.1 GENERAL. Awards shall be evidenced by a written agreement or other
document and may be granted on the terms and conditions set forth herein. In
addition, the Committee may impose on any Award or the exercise thereof, such
additional terms and conditions, not inconsistent with the provisions of the
Plan, as the Committee shall determine, including terms requiring forfeiture of
Awards in the event of termination of employment by the Participant and terms
permitting a Participant to make elections relating to his or her Award;
provided, that any such election would not (i) cause the application of Section
409A of the Code to the Award or (ii) create adverse tax consequences under
Section 409A of the Code should Section 409A apply to the Award. The terms,
conditions and/or restrictions contained in an Award may differ from the terms,
conditions and restrictions contained in any other Award. The Committee may
amend an Award; provided, however, that, subject to Section 11.12, no amendment
of an Award may, without the consent of the holder of the Award, adversely
affect such person's rights with respect to such Award in any material respect.
The Committee shall retain full power and discretion to accelerate or waive, at
any time, any term or condition of an Award that is not mandatory under the
Plan; provided, however, that, subject to Section 11.12, the Committee shall not
have any discretion to accelerate or waive any term or condition of an Award (i)
if such discretion would cause the Award to have adverse tax consequences to the
Participant under Section 409A of the Code or (ii) if the Award is intended to
qualify as "performance-based compensation" for purposes of Section 162(m) of
the Code if such discretion would cause the Award not to so qualify. Except in
cases in which the Committee is authorized to require other forms of
consideration under the Plan, or to the extent other forms of consideration must
be paid to satisfy the requirements of the Delaware Corporation Law, no
consideration other than services may be required for the grant of any Award.

                                       17

<PAGE>

     11.2 STAND-ALONE, ADDITIONAL, TANDEM AND SUBSTITUTE AWARDS. Subject to
Section 2.4 of the Plan, Awards granted under the Plan may, in the discretion of
the Committee, be granted either alone or in addition to, in tandem with, or in
substitution or exchange for, any other Award or any award granted under another
plan of the Company, any Affiliate or any business entity to be acquired by the
Company or an Affiliate, or any other right of a Participant to receive payment
from the Company or any Affiliate; provided, however, no Award shall be issued
under the Plan if issuance of the Award would result in adverse tax consequences
under Section 409A of the Code. Such additional, tandem and substitute or
exchange Awards may be granted at any time. If an Award is granted in
substitution or exchange for another Award, the Committee shall require the
surrender of such other Award for cancellation in consideration for the grant of
the new Award. In addition, Awards may be granted in lieu of cash compensation,
including in lieu of cash amounts payable under other plans of the Company or
any Affiliate. Any such action contemplated under this Section 11.2 shall be
effective only to the extent that such action will not cause (i) the holder of
the Award to lose the protection of Section 16(b) of the Exchange Act and rules
and regulations promulgated thereunder, (ii) any Award that is designed to
qualify payments thereunder as performance-based compensation as defined in
Section 162(m) of the Code to fail to qualify as such performance-based
compensation or (iii) any Award that is subject to Section 409A of the Code to
result in adverse consequences under Section 409A of the Code.

     11.3 TERM OF AWARDS. The term or Restricted Period of each Award that is an
Option, Stock Appreciation Right, Phantom Stock or Restricted Stock shall be for
such period as may be determined by the Committee; provided, however, that in no
event shall the term of any such Award exceed a period of ten years (or such
shorter terms as may be required in respect of an Incentive Stock Option under
Section 422 of the Code).

     11.4 FORM AND TIMING OF PAYMENT UNDER AWARDS; DEFERRALS. Subject to the
terms of the Plan and any applicable Award agreement, payments to be made by the
Company or an Affiliate upon the exercise of an Option or other Award or
settlement of an Award may be made in a single payment or transfer, in
installments or on a deferred basis. The settlement of any Award may, subject to
any limitations set forth in the Award agreement, be accelerated and cash paid
in lieu of shares in connection with such settlement, in the discretion of the
Committee or upon occurrence of one or more specified events; provided, however,
that such discretion may not be exercised by the Committee if the exercise of
such discretion would result in adverse tax consequences to the Participant
under Section 409A of the Code. In the discretion of the Committee, Awards
granted pursuant to Article VII or Article IX of the Plan may be payable in
shares to the extent permitted by the terms of the applicable Award agreement.
Installment or deferred payments may be required by the Committee (subject to
Section 1.8 of the Plan, including the consent provisions thereof in the case of
any deferral of an outstanding Award not provided for in the original Award
agreement) or permitted at the election of the Participant on terms and
conditions established by the Committee; provided, however, that no deferral
shall be required or permitted by the Committee if such deferral would result in
adverse tax consequences to the Participant under Section 409A of the Code.
Payments may include, without limitation, provisions for the payment or
crediting of reasonable interest on installment or deferred payments or the
grant or crediting of amounts in respect of installment or deferred payments
denominated in shares. Any deferral shall only be allowed as is provided in a
separate deferred

                                       18

<PAGE>

compensation plan adopted by the Company. The Plan shall not constitute any
"employee benefit plan" for purposes of Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended.

     11.5 VESTED AND UNVESTED AWARDS. After the satisfaction of all of the terms
and conditions set by the Committee with respect to an Award of (a) Restricted
Stock, a certificate, without the legend set forth in Section 8.2(c) for the
number of shares that are no longer subject to such restrictions, terms and
conditions shall be delivered to the Employee, (b) Phantom Stock, to the extent
not paid in cash, a certificate for the number of shares equal to the number of
shares of Phantom Stock earned and (c) Stock Appreciation Rights or Performance
Awards, cash and/or a certificate for the number of shares equal in value to the
number of Stock Appreciation Rights or amount of Performance Awards vested shall
be delivered to the person. The number of shares of Common Stock which shall be
issuable upon exercise of a Stock Appreciation Right or earning of a Performance
Award shall be determined by dividing (1) by (2) where (1) is the number of
shares of Common Stock as to which the Stock Appreciation Right is exercised
multiplied by the Spread or the amount of Performance Award that is earned and
payable, as applicable, and (2) is the FMV Per Share of Common Stock on the date
of exercise of the Stock Appreciation Right or the date the Performance Award is
earned and payable, as applicable. Upon termination, resignation or removal of a
Participant under circumstances that do not cause such Participant to become
fully vested, any remaining unvested Options, shares of Restricted Stock,
Phantom Stock, Stock Appreciation Rights or Performance Awards, as the case may
be, shall either be forfeited back to the Company or, if appropriate under the
terms of the Award, shall continue to be subject to the restrictions, terms and
conditions set by the Committee with respect to such Award.

     11.6 EXEMPTIONS FROM SECTION 16(B) LIABILITY. It is the intent of the
Company that the grant of any Awards to or other transaction by a Participant
who is subject to Section 16 of the Exchange Act shall be exempt from Section
16(b) of the Exchange Act pursuant to an applicable exemption (except for
transactions acknowledged by the Participant in writing to be non-exempt).
Accordingly, if any provision of this Plan or any Award agreement does not
comply with the requirements of Rule 16b-3 as then applicable to any such
transaction, such provision shall be construed or deemed amended to the extent
necessary to conform to the applicable requirements of Rule 16b-3 so that such
Participant shall avoid liability under Section 16(b) of the Exchange Act.

     11.7 SECURITIES REQUIREMENTS. No shares of Common Stock will be issued or
transferred pursuant to an Award unless and until all then-applicable
requirements imposed by federal and state securities and other laws, rules and
regulations and by any regulatory agencies having jurisdiction and by any stock
market or exchange upon which the Common Stock may be listed, have been fully
met. As a condition precedent to the issuance of shares pursuant to the grant or
exercise of an Award, the Company may require the grantee to take any reasonable
action to meet such requirements. The Company shall not be obligated to take any
affirmative action in order to cause the issuance or transfer of shares pursuant
to an Award to comply with any law or regulation described in the second
preceding sentence.

                                       19

<PAGE>

     11.8 TRANSFERABILITY.

     (a) Non-Transferable Awards and Options. Except as otherwise specifically
provided in the Plan, no Award and no right under the Plan, contingent or
otherwise, other than Purchased Stock, Bonus Stock or Restricted Stock as to
which restrictions have lapsed, will be (i) assignable, saleable or otherwise
transferable by a Participant except by will or by the laws of descent and
distribution or pursuant to a qualified domestic relations order or (ii) subject
to any encumbrance, pledge or charge of any nature. No transfer by will or by
the laws of descent and distribution shall be effective to bind the Company
unless the Committee shall have been furnished with a copy of the deceased
Participant's will or such other evidence as the Committee may deem necessary to
establish the validity of the transfer. Any attempted transfer in violation of
this Section 11.8(a) shall be void and ineffective for all purposes.

     (b) Ability to Exercise Rights. Except as otherwise specifically provided
under the Plan, only the Participant or his guardian (if the Participant becomes
Disabled), or in the event of his death, his legal representative or
beneficiary, may exercise Options, receive cash payments and deliveries of
shares or otherwise exercise rights under the Plan. The executor or
administrator of the Participant's estate, or the person or persons to whom the
Participant's rights under any Award will pass by will or the laws of descent
and distribution, shall be deemed to be the Participant's beneficiary or
beneficiaries of the rights of the Participant hereunder and shall be entitled
to exercise such rights as are provided hereunder.

     11.9 RIGHTS AS A STOCKHOLDER.

     (a) No Stockholder Rights. Except as otherwise provided in Section 11.9(b),
a Participant who has received a grant of an Award or a transferee of such
Participant shall have no rights as a stockholder with respect to any shares of
Common Stock until such person becomes the holder of record. Except as otherwise
provided in Section 11.9(b), no adjustment shall be made for dividends (ordinary
or extraordinary, whether in cash, securities or other property) or
distributions or other rights for which the record date is prior to the date
such stock certificate is issued.

     (b) Holder of Restricted Stock. Unless otherwise approved by the Committee
prior to the grant of a Restricted Stock Award, a Participant who has received a
grant of Restricted Stock or a permitted transferee of such Participant shall
not have any rights of a stockholder until such time as a stock certificate has
been issued with respect to all, or a portion of, such Restricted Stock Award.

     11.10 LISTING AND REGISTRATION OF SHARES OF COMMON STOCK. The Company, in
its discretion, may postpone the issuance and/or delivery of shares of Common
Stock upon any exercise of an Award until completion of such stock exchange
listing, registration or other qualification of such shares under any state
and/or federal law, rule or regulation as the Company may consider appropriate,
and may require any Participant to make such representations and furnish such
information as it may consider appropriate in connection with the issuance or
delivery of the shares in compliance with applicable laws, rules and
regulations.

                                       20

<PAGE>

     11.11 TERMINATION OF EMPLOYMENT, DEATH, DISABILITY AND RETIREMENT.

     (a) Termination of Employment. Unless otherwise provided in the Award, if
Employment of an Employee or service of a Non-Employee Director is terminated
for any reason whatsoever other than death, Disability or Retirement, or if
service of a Consultant is terminated for any reason whatsoever other than
death, any nonvested Award granted pursuant to the Plan outstanding at the time
of such termination and all rights thereunder shall wholly and completely
terminate and no further vesting shall occur, and the Employee, Consultant or
Non-Employee Director shall be entitled to exercise his or her rights with
respect to the portion of the Award vested as of the date of termination for a
period that shall end on the earlier of (i) the expiration date set forth in the
Award with respect to the vested portion of such Award or (ii) the date that
occurs six (6) months after such termination date (three (3) months after the
date of termination in the case of an Incentive Option).

     (b) Retirement. Unless otherwise provided in the Award, upon the Retirement
of an Employee or, if applicable, Non-Employee Director:

          (i) any nonvested portion of any outstanding Award shall immediately
     terminate and no further vesting shall occur; and

          (ii) any vested Award shall expire on the earlier of (A) the
     expiration date set forth in the Award or (B) the expiration of (x) twelve
     (12) months after the date of Retirement in the case of any Award other
     than an Incentive Option and (y) three (3) months after the date of
     Retirement in the case of an Incentive Option.

     (c) Disability or Death. Unless otherwise provided in the Award, upon
termination of Employment or service from the Company or any Affiliate that is a
parent or subsidiary of the Company as a result of Disability of an Employee or
Non-Employee Director or death of an Employee, Non-Employee Director or
Consultant, or with respect to a Participant who is either a retired former
Employee or Non-Employee Director who dies during the period described in
Section 11.11(b), hereinafter the "Applicable Retirement Period," or a disabled
former Employee or Non-Employee Director who dies during the period that expires
on the earlier of the expiration date set forth in any applicable outstanding
Award or the first anniversary of the person's termination of Employment or
service due to Disability, hereinafter the "Applicable Disability Period,"

          (i) any nonvested portion of any outstanding Award that has not
     already terminated shall immediately terminate and no further vesting shall
     occur; and

          (ii) any vested Award shall expire upon the earlier of (A) the
     expiration date set forth in the Award or (B) the later of (1) the first
     anniversary of such termination of Employment as a result of Disability or
     death or (2) the first anniversary of such person's death during the
     Applicable Retirement Period or the Applicable Disability Period.

     (d) Continuation. Notwithstanding any other provision of the Plan, the
Committee, in its discretion, may provide for the continuation of any Award for
such period and upon such

                                       21

<PAGE>

terms and conditions as are determined by the Committee in the event that a
Participant ceases to be an Employee, Consultant or Non-Employee Director.

     11.12 CHANGE IN CONTROL.

     (a) Change in Control. Unless otherwise provided in the Award, in the event
of a Change in Control described in clauses (ii), (iii) or (iv) of the
definition of Change in Control under Section 1.2 of the Plan:

          (i) the Committee may accelerate vesting and the time at which all
     Options and Stock Appreciation Rights then outstanding may be exercised so
     that those types of Awards may be exercised in full for a limited period of
     time on or before a specified date fixed by the Committee, after which
     specified date all unexercised Options and Stock Appreciation Rights and
     all rights of Participants thereunder shall terminate, or the Committee may
     accelerate vesting and the time at which Options and Stock Appreciation
     Rights may be exercised so that those types of Awards may be exercised in
     full for their then remaining term;

          (ii) the Committee may waive all restrictions and conditions of all
     Restricted Stock and Phantom Stock then outstanding with the result that
     those types of Awards shall be deemed satisfied, and the Restriction Period
     or other limitations on payment in full with respect thereto shall be
     deemed to have expired, as of the date of the Change in Control or such
     other date as may be determined by the Committee; and

          (iii) the Committee may determine to amend Performance Awards and
     Other Stock or Performance-Based Awards, or substitute new Performance
     Awards and Other Stock or Performance-Based Awards in consideration of
     cancellation of outstanding Performance Awards and any Other Stock or
     Performance-Based Awards, in order to ensure that such Awards shall become
     fully vested, deemed earned in full and promptly paid to the Participants
     as of the date of the Change in Control or such other date as may be
     determined by the Committee, without regard to payment schedules and
     notwithstanding that the applicable performance cycle, retention cycle or
     other restrictions and conditions shall not have been completed or
     satisfied.

Notwithstanding the above provisions of this Section 11.12(a), the Committee
shall not be required to take any action described in the preceding provisions
of this Section 11.12(a), and any decision made by the Committee, in its sole
discretion, not to take some or all of the actions described in the preceding
provisions of this Section 11.12(a) shall be final, binding and conclusive with
respect to the Company and all other interested persons.

     (b) Right of Cash-Out. If approved by the Board prior to or within thirty
(30) days after such time as a Change in Control shall be deemed to have
occurred, the Board shall have the right for a forty-five (45) day period
immediately following the date that the Change in Control is deemed to have
occurred to require all, but not less than all, Participants to transfer and
deliver to the Company all Awards previously granted to the Participants in
exchange for an amount equal to the "cash value" (defined below) of the Awards.
Such right shall be exercised by written notice to all Participants. For
purposes of this Section 11.12(b), the cash value of an

                                       22

<PAGE>

Award shall equal the sum of (i) the cash value of all benefits to which the
Participant would be entitled upon settlement or exercise of any Award which is
not an Option or Restricted Stock and (ii) in the case of any Award that is an
Option or Restricted Stock, the excess of the "market value" (defined below) per
share over the option price, or the market value (defined below) per share of
Restricted Stock, multiplied by the number of shares subject to such Award. For
purposes of the preceding sentence, "market value" per share shall mean the
higher of (x) the average of the Fair Market Value per share of Common Stock on
each of the five trading days immediately following the date a Change in Control
is deemed to have occurred or (y) the highest price, if any, offered in
connection with the Change in Control. The amount payable to each Participant by
the Company pursuant to this Section 11.12(b) shall be in cash or by certified
check and shall be reduced by any taxes required to be withheld.

                                   ARTICLE XII
                              WITHHOLDING FOR TAXES

     Any issuance of Common Stock pursuant to the exercise of an Option or in
payment of any other Award under the Plan shall not be made until appropriate
arrangements satisfactory to the Company have been made for the payment of any
tax amounts (federal, state, local or other) that may be required to be withheld
or paid by the Company with respect thereto at the minimum statutory rate. Such
arrangements may, at the discretion of the Committee, include allowing the
person to tender to the Company shares of Common Stock owned by the person, or
to request the Company to withhold shares of Common Stock being acquired
pursuant to the Award, whether through the exercise of an Option or as a
distribution pursuant to the Award, which have an aggregate FMV Per Share as of
the date of such withholding that is not greater than the sum of all tax amounts
to be withheld with respect thereto, together with payment of any remaining
portion of such tax amounts in cash or by check payable and acceptable to the
Company.

     Notwithstanding the foregoing, if on the date of an event giving rise to a
tax withholding obligation on the part of the Company the person is an officer
or individual subject to Rule 16b-3, such person may direct that such tax
withholding be effectuated by the Company withholding the necessary number of
shares of Common Stock (at the minimum statutory tax rate required by the Code)
from such Award payment or exercise.

                                  ARTICLE XIII
                                  MISCELLANEOUS

     13.1 NO RIGHTS TO AWARDS OR UNIFORMITY AMONG AWARDS. No Participant or
other person shall have any claim to be granted any Award; there is no
obligation for uniformity of treatment of Participants, or holders or
beneficiaries of Awards; and the terms and conditions of Awards need not be the
same with respect to each recipient.

     13.2 CONFLICTS WITH PLAN. In the event of any inconsistency or conflict
between the terms of the Plan and an Award, the terms of the Plan shall govern.

     13.3 NO RIGHT TO EMPLOYMENT. The grant of an Award shall not be construed
as giving a Participant the right to be retained in the employ of the Company or
any Affiliate. Further, the Company or any Affiliate may at any time dismiss a
Participant from employment,

                                       23

<PAGE>

free from any liability or any claim under the Plan, unless otherwise expressly
provided in the Plan or in any Award.

     13.4 GOVERNING LAW. The validity, construction and effect of the Plan and
any rules and regulations relating to the Plan shall be determined in accordance
with applicable federal law and the laws of the State of Delaware, without
regard to any principles of conflicts of law.

     13.5 GENDER, TENSE AND HEADINGS. Whenever the context requires such, words
of the masculine gender used herein shall include the feminine and neuter, and
words used in the singular shall include the plural. Section headings as used
herein are inserted solely for convenience and reference and constitute no part
of the Plan.

     13.6 SEVERABILITY. If any provision of the Plan or any Award is or becomes
or is deemed to be invalid, illegal or unenforceable in any jurisdiction or as
to any Participant or Award, or would disqualify the Plan or any Award under any
law deemed applicable by the Committee, such provision shall be construed or
deemed amended as necessary to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall be
stricken as to such jurisdiction, Participant or Award, and the remainder of the
Plan and any such Award shall remain in full force and effect.

     13.7 OTHER LAWS. The Committee may refuse to issue or transfer any shares
or other consideration under an Award if, acting in its sole discretion, it
determines that the issuance or transfer of such shares or such other
consideration might violate any applicable law.

     13.8 SHAREHOLDER AGREEMENTS. The Committee may condition the grant,
exercise or payment of any Award upon such person entering into a stockholders'
or repurchase agreement in such form as approved from time to time by the Board.

     13.9 FUNDING. Except as provided under Article VIII of the Plan, no
provision of the Plan shall require or permit the Company, for the purpose of
satisfying any obligations under the Plan, to purchase assets or place any
assets in a trust or other entity to which contributions are made or otherwise
to segregate any assets, nor shall the Company maintain separate bank accounts,
books, records or other evidence of the existence of a segregated or separately
maintained or administered fund for such purposes. Participants shall have no
rights under the Plan other than as unsecured general creditors of the Company,
except that insofar as they may have become entitled to payment of additional
compensation by performance of services, they shall have the same rights as
other Employees, Consultants or Non-Employee Directors under general law.

     13.10 NO GUARANTEE OF TAX CONSEQUENCES. Neither the Board, nor the Company
nor the Committee makes any commitment or guarantee that any federal, state or
local tax treatment will apply or be available to any person participating or
eligible to participate hereunder.

                                       24exv10w03

 

EXHIBIT 10.03+

INTUIT INC.

2005 EQUITY INCENTIVE PLAN

(As Amended on July 26, 2006)

(Numbers within revised to reflect 2-for-1 Stock Split Effective July 7, 2006)

     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, Stock Bonuses, Stock Appreciation
Rights (SARs) and Restricted Stock Units. Capitalized terms not defined in the text are defined in
Section 26.

     2. SHARES SUBJECT TO THE PLAN.

          2.1 Number of Shares Available. Subject to Sections 2.2 and 21, 26,000,000 Shares are
available for grant and issuance under the Plan. Shares that are subject to: (a) issuance upon
exercise of an Option or SAR granted under this Plan but cease to be subject to the Option or SAR
for any reason other than exercise of the Option; (b) an Award granted under this Plan but are
forfeited or are repurchased by the Company at the original issue price; or (c) an Award granted
under this Plan that otherwise terminates without Shares being issued, will return to the pool of
Shares available for grant and issuance under this Plan. In any fiscal year of the Company no more
than fifty percent (50%) of the Shares subject to Awards granted in such fiscal year may have an
Exercise Price or Purchase Price per Share that is less than Fair Market Value on the applicable
date of grant. In order that ISOs may be granted under this Plan, no more than 26,000,000 shares
shall be issued as ISOs. The Company may issue Shares which are authorized but unissued or
treasury shares pursuant to the Awards granted under this Plan. At all times the Company will
reserve and keep available a sufficient number of Shares to satisfy the requirements of all
outstanding Options and SARs 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, extraordinary dividend of cash or stock or similar change in the capital
structure of the Company, without consideration, then (a) the number of Shares reserved for
issuance under the Plan and the limits that are set forth in Section 2.1; (b) the Exercise Prices
of and number of Shares subject to outstanding Options and SARs; (c) the number of Shares subject
to other outstanding Awards; (d) the 4,000,000 and 6,000,000 maximum number of shares that may be
issued to an individual in any one calendar year set forth in Section 3; and (e) the number of
Shares that are granted as Options to Non-Employee Directors as set forth in Section 10, 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 replaced by a cash payment equal to the Fair Market Value of such
fraction of a Share or will be rounded up to the nearest whole 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 (including officers and directors who are also employees), non-employee directors and
consultants 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
Plan. A person may be granted more than one Award under the Plan. However, no person will be
eligible to receive more than 4,000,000 Shares issuable under Awards granted in any calendar year,
other than new employees of the Company or of a Parent or Subsidiary (including new employees who
are also officers

1

 

and directors of the Company or any Parent or Subsidiary), who are eligible to receive up
to a maximum of 6,000,000 Shares issuable under Awards granted in the calendar year in which they
commence their employment.

     4. ADMINISTRATION.

          4.1 Committee Authority. The Plan shall be administered by the Committee or by the
Board acting as the Committee. Except for automatic grants to Non-Employee Directors pursuant to
Section 10 hereof, and subject to the general purposes, 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 or any
Award, 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 (who would also be considered “officers” under Delaware
law) the authority to grant an Award under the Plan to Participants who are not
Insiders;
	 
	 	(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; or
	 
	 	(l)	 	make all other determinations necessary or advisable for the administration of
the Plan.

          4.2 Committee Interpretation and Discretion. Except for automatic grants to
Non-Employee Directors pursuant to Section 10 hereof, 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 the Participant or Company to the Committee for review.
The resolution of such a

2

 

dispute by the Committee shall be final and binding on the Company and
Participant. The Committee may delegate to one or more Executive Officers, the authority to review
and resolve disputes with respect to Awards held by Participants who are not Insiders, and such
resolution shall be final and binding on the Company and Participant. Notwithstanding any
provision of the Plan to the contrary, administration of the Plan shall at all times be limited by
the requirement that any administrative action or exercise of discretion shall be void (or suitably
modified when possible) if necessary to avoid the application to any Participant of immediate
taxation and/or tax penalities under Section 409A of the Code.

     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 provisions of this Section 5 and the Plan.
Options granted to Non-Employee Directors pursuant to Section 10 hereof shall be governed by that
Section.

          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. Except as
otherwise required by the terms of Options to Non-Employee Directors as provided in the terms of
Section 10 hereof, the Stock Option Agreement will be substantially in a form and contain such
provisions (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 Stock
Option Agreement, Plan, the Prospectus and other documents may be delivered in any manner
(including electronic distribution or posting) that meets applicable legal requirements.

          5.3 Exercise Period and Expiration Date. An Option will be exercisable within the
times or upon the occurrence of events determined by the Committee and set forth in the Stock
Option Agreement governing such Option, 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
seven 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 (including, without limitation, upon the attainment during
a Performance Period of performance goals based on Performance Factors), 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, subject to the limit of Section 2.1, 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. Payment for the Shares purchased must
be made in accordance with Section 11 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.

3

 

          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. 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 who is 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. For purposes of this Section 5.6(a), “total
disability” shall mean: (i) (A) 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, (B) 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 (ii) 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 held by 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 in 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 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 Code’s 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 (a) the date two years after the Date of Grant, and (b) the date one year
after the exercise of the ISO (in either case, a “Disqualifying Disposition”), the Company
may require the Participant to immediately notify the Company in writing of such Disqualifying
Disposition.

4

 

          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, 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.

          6.1 Awards of Restricted Stock. A Restricted Stock Award is an offer by the Company
to sell to an eligible person Shares that are subject to restrictions. The Committee will
determine to whom an offer will be made, the number of Shares the person may purchase, the Purchase
Price, the restrictions under which the Shares will be subject and all other terms and conditions
of the Restricted Stock Award, subject to the following:

          6.2 Restricted Stock Purchase Agreement. All purchases under a Restricted Stock Award
will be evidenced by a Restricted Stock Purchase Agreement, which will be in substantially 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. A Participant accepts a Restricted Stock Award by signing
and delivering to the Company a Restricted Stock Purchase Agreement with 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 within
thirty days, then the offer of the Restricted Stock Award will terminate, unless the Committee
determines otherwise.

          6.3 Purchase Price. The Purchase Price for a Restricted Stock Award will be
determined by the Committee and, subject to the limit of Section 2.1, 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. Payment of the Purchase Price must be made in accordance with Section 11 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.

          6.4 Terms of Restricted Stock Awards. Restricted Stock Awards will be subject to such
restrictions as 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
based on Performance Factors during any Performance Period as set out in advance in the
Participant’s 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.

          6.5 Termination During Performance Period. If a Participant is Terminated during a
Performance Period or vesting period, for any reason, then such Participant will be entitled to
payment (whether in Shares, cash or otherwise) with respect to the Restricted Stock Award only to
the extent earned as of the date of Termination in accordance with the Restricted Stock Purchase Agreement, unless the Committee will
determine otherwise.

5

 

     7. STOCK BONUS AWARDS.

          7.1 Awards of Stock Bonuses. A Stock Bonus Award is an award to an eligible person of
Shares (which may consist of Restricted Stock or Restricted Stock Units) for services to be
rendered or for past services already rendered to the Company or any Parent or Subsidiary. All
Stock Bonus Awards shall be made pursuant to a Stock Bonus Agreement, which shall be in
substantially 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. No payment will be required for
Shares awarded pursuant to a Stock Bonus Award, but the number of Shares awarded is subject to the
limit of Section 2.1.

          7.2 Terms of Stock Bonus Awards. The Committee will determine the number of Shares to
be awarded to the Participant under a Stock Bonus Award and any restrictions thereon. These
restrictions may be based upon completion of a specified number of years of service with the
Company or upon satisfaction of performance goals based on Performance Factors during any
Performance Period as set out in advance in the Participant’s Stock Bonus Agreement. If the Stock
Bonus Award is to be earned upon the satisfaction of performance goals, the Committee shall: (a)
determine the nature, length and starting date of any Performance Period for the Stock Bonus Award;
(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 Award, the Committee will
determine the extent to which the Stock Bonus Award has been earned. Performance Periods may
overlap and a Participant may participate simultaneously with respect to Stock Bonus Awards that
are subject to different Performance Periods and different performance goals and other criteria.
The number of Shares may be fixed or may vary in accordance with such performance goals and
criteria as may be determined by the Committee. The Committee may adjust the performance goals
applicable to a Stock Bonus Award to take into account changes in law and accounting or tax rules
and to make such adjustments as the Committee deems necessary or appropriate to reflect the impact
of extraordinary or unusual items, events or circumstances to avoid windfalls or hardships.

          7.3 Form of Payment to Participant. The Committee will determine whether the earned
portion of a Stock Bonus Award will be paid to the Participant currently or on a deferred basis
with such interest or dividend equivalent, if any, as the Committee may determine. To the extent
permissible under law, the Committee may also permit a Participant to defer payment under a Stock
Bonus Award to a date or dates after the Stock Bonus Award is earned provided that the terms of the
Stock Bonus Award and any deferral satisfy the requirements of Section 409A of the Code and
provided further that payout shall not be deferred beyond March 15 of the year following the year
of vesting unless a deferral election in compliance with Section 409A of the Code has been made.
Payment may be made in the form of cash, whole Shares, or a combination thereof, based on the Fair
Market Value of the Shares earned under a Stock Bonus Award on the date of payment, and in either a
lump sum payment or in installments.

          7.4 Termination of Participant. In the event of a Participant’s Termination during a
Performance Period or vesting period, for any reason, then such Participant will be entitled to
payment (whether in Shares, cash or otherwise) with respect to the Stock Bonus Award only to the
extent earned as of the date of Termination in accordance with the Stock Bonus Agreement, unless
the Committee determines otherwise.

     8. STOCK APPRECIATION RIGHTS. 

          8.1 Awards of SARs. A Stock Appreciation Right (“SAR”) is an award to an
eligible person that may be settled in cash, or Shares (which may consist of Restricted Stock),
having a value equal to the value determined by multiplying the difference between the Fair Market
Value on the date of exercise over the Exercise Price and the number of Shares with respect to
which the SAR is being settled. The SAR may be granted for services to be rendered or for past
services already rendered to the Company, or any Parent or Subsidiary. All

6

 

SARs shall be made pursuant to a SAR Agreement, which shall be in substantially 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 this Plan.

          8.2 Terms of SARs. The Committee will determine the terms of a SAR including, without
limitation: (a) the number of Shares deemed subject to the SAR; (b) the Exercise Price and the time
or times during which the SAR may be settled; (c) the consideration to be distributed on settlement
of the SAR; and (d) the effect on each SAR of the Participant’s Termination. The Exercise Price of
the SAR will be determined by the Committee when the SAR is granted and, subject to the limit of
Section 2.1, may be less than Fair Market Value (but not less than the par value of the Shares. A
SAR may be awarded upon satisfaction of such performance goals based on Performance Factors during
any Performance Period as are set out in advance in the Participant’s individual SAR Agreement. If
the SAR is being earned upon the satisfaction of performance goals, then the Committee will: (x)
determine the nature, length and starting date of any Performance Period for each SAR; and (y)
select from among the Performance Factors to be used to measure the performance, if any. Prior to
settlement of any SAR earned upon the satisfaction of performance goals pursuant to a SAR
Agreement, the Committee shall determine the extent to which such SAR has been earned. Performance
Periods may overlap and Participants may participate simultaneously with respect to SARs that are
subject to different performance goals and other criteria. The Exercise Price of an outstanding
SAR may not be reduced without stockholder approval.

          8.3 Exercise Period and Expiration Date. A SAR will be exercisable within the times
or upon the occurrence of events determined by the Committee and set forth in the SAR Agreement
governing such SAR. The SAR Agreement shall set forth the last date that the SAR may be exercised
(the “Expiration Date”); provided that no SAR will be exercisable after the expiration of
seven years from the date the SAR is granted. The Committee may also provide for SARs to become
exercisable at one time or from time to time, periodically or otherwise (including, without
limitation, upon the attainment during a Performance Period of performance goals based on
Performance Factors), in such number of Shares or percentage of the Shares subject to the SAR as
the Committee determines.

          8.4 Form and Timing of Settlement. The portion of a SAR being settled may be paid
currently or on a deferred basis with such interest or dividend equivalent, if any, as the
Committee determines. Payment may be made in the form of cash or whole Shares or a combination
thereof, either in a lump sum payment or in installments, as the Committee determines, provided
that the terms of the SAR and any deferral satisfy the requirements of Section 409A of the Code and
provided further that payout shall not be deferred beyond March 15 of the year following the year
of vesting unless a deferral election in compliance with Section 409A of the Code has been made.

	     9. 	RESTRICTED STOCK UNITS

          9.1 Awards of Restricted Stock Units. A Restricted Stock Unit (“RSU”) is an
award to an eligible person covering a number of Shares that may be settled in cash, or by issuance
of those Shares (which may consist of Restricted Stock) for services to be rendered or for past
services already rendered to the Company or any Parent or Subsidiary. The Committee may authorize
the issuance of RSUs to certain eligible persons who elect to defer cash compensation. All RSUs
shall be made pursuant to a RSU Agreement, which shall be in substantially 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 (including the limit set forth in Section 2.1).

          9.2 Terms of RSUs. The Committee will determine the terms of a RSU including, without
limitation: (a) the number of Shares deemed subject to the RSU; (b) the time or times during which
the RSU may be exercised; (c) the consideration to be distributed on settlement, and the effect on
each RSU of the Participant’s Termination. A RSU may be awarded upon satisfaction of such
performance goals based on Performance Factors during any Performance Period as are set out in
advance in the Participant’s individual RSU Agreement. If the RSU is being earned upon
satisfaction of performance goals, then the Committee will: (x) determine the nature, length and
starting date of any Performance Period for the RSU; (y) select from among the Performance Factors
to be used to measure the performance, if any; and (z) determine the number of Shares deemed
subject to the RSU. Prior to

7

 

settlement of any RSU earned upon the satisfaction of performance goals pursuant to a RSU
Agreement, the Committee shall determine the extent to which such SAR has been earned. Performance
Periods may overlap and participants may participate simultaneously with respect to RSUs that are
subject to different Performance Periods and different performance goals and other criteria. The
number of Shares may be fixed or may vary in accordance with such performance goals and criteria as
may be determined by the Committee. The Committee may adjust the performance goals applicable to
the RSUs to take into account changes in law and accounting and to make such adjustments as the
Committee deems necessary or appropriate to reflect the impact of extraordinary or unusual items,
events or circumstances to avoid windfalls or hardships.

          9.3 Form and Timing of Settlement. The portion of a RSU being settled may be paid
currently or on a deferred basis with such interest or dividend equivalent, if any, as the
Committee determines. To the extent permissible under law, the Committee may also permit a
Participant to defer payment under a RSU to a date or dates after the RSU is earned provided that
the terms of the RSU and any deferral satisfy the requirements of Section 409A of the Code and
provided further that payout shall not be deferred beyond March 15 of the year following the year
of vesting unless a deferral election in compliance with Section 409A of the Code has been made.
Payment may be made in the form of cash or whole Shares or a combination thereof, either in a lump
sum payment or in installments, all as the Committee determines.

     10. AUTOMATIC GRANTS TO NON-EMPLOYEE DIRECTORS.1

          10.1 Eligibility. Non-Employee Directors are eligible for options granted pursuant to
this Section 10.

          10.2 Initial Grant. Each Non-Employee Director who first becomes a member of the
Board on or after July 26, 2006, will automatically be granted an option for 67,500 Shares on the
date such Non-Employee Director first becomes a member of the Board. Each Option granted pursuant
to this Section 10.2 shall be called an “Initial Grant”.

          10.3 Succeeding Grant. On each anniversary occuring on or after July 26, 2006, of an
Initial Grant under this Plan (or under the Company’s 1996 Directors Stock Option Plan) each
Non-Employee Director who has served continuously as a member of the Board during that period will
automatically be granted an Option for 22,500 Shares. Each Option granted pursuant to this Section
10.3 shall be called a “Succeeding Grant”.

          10.4 Audit Committee Grants. Each Non-Employee Director who is appointed Chairperson
of the Audit Committee, if any, on or after July 26, 2006, will automatically be granted an Option
for 10,000 Shares on the day he or she is appointed (the “Audit Committee Chairperson
Grant”). On each anniversary of a Non-Employee Director’s first Audit Committee Chairperson
Grant on which the Non-Employee Director continues to be the Chairperson of the Audit Committee,
the Non-Employee Director will automatically be granted an Option for 10,000 Shares (also an
“Audit Committee Chairperson Grant”). Each Non-Employee Director who is appointed a new
non-Chairperson member of the Audit Committee on or after July 26, 2006, will automatically be
granted an Option for 7,500 Shares on the day he or she is appointed. The types of option grant
referenced in the preceding two sentences or granted under this Section 10.4 prior to July 26,
2006, are each hereinafter referred to as an “Audit Committee Grant”. If on each
subsequent anniversary occuring on or after July 26, 2006, of a Non-Employee Director’s first Audit
Committee Grant, the Non-Employee Director is a non-Chairperson member of the Audit Committee and
if the Non-Employee Director has been in continuous service on the Audit Committee since such Audit
Committee Grant, then the Non-Employee Director will automatically be granted an Option for 7,500
Shares (each such Option a “Succeeding Audit Committee Grant”).

          10.5 Compensation and Organizational Development Committee Grants. Each Non-Employee
Director who is appointed Chairperson of the Compensation and Organizational Development Committee,
if any, on or after July 26, 2006, will automatically be granted an Option for 10,000 Shares on the
day

 

			
	1	 	The automatic grants referenced in this
Section 10 reflect the amendment of the Plan adopted by the Board on July 26,
2006. Previously Initial Grants were for 45,000 shares, Succeeding Grants were
for 15,000 shares and grants for service on a qualifying committee were for
10,000 shares.

8

 

he or she is appointed (the “Compensation Committee Chairperson Grant”). On each
anniversary of a Non-Employee Director’s first Compensation Committee Chairperson Grant on which
the Non-Employee Director continues to be the Chairperson of the Compensation and Organizational
Development Committee, the Non-Employee Director will automatically be granted an Option for 10,000
Shares (also a “Compensation Committee Chairperson Grant”). Each Non-Employee Director who
is appointed a new non-Chairperson member of the Compensation and Organizational Development
Committee on or after July 26, 2006, will automatically be granted an Option for 7,500 Shares on
the day he or she is appointed. The types of option grant referenced in the preceding two
sentences or granted under this Section 10.5 prior to July 26, 2006, are each hereinafter referred
to as a “Compensation Committee Grant”. If on each subsequent anniversary occuring on or
after July 26, 2006, of a Non-Employee Director’s first Compensation Committee Grant the
Non-Employee Director is a non-Chairperson member of the Compensation and Organizational
Development Committee and if the Non-Employee Director has been in continuous service on the
Compensation and Organizational Development Committee since such Compensation Committee Grant, then
the Non-Employee Director will automatically be granted an Option for 7,500 Shares (each such
Option a “Succeeding Compensation Committee Grant”).

          10.6 Nominating & Governance Committee Grants. Each Non-Employee Director who is
appointed Chairperson of the Nominating & Goverance Committee, if any, on or after July 26, 2006,
will automatically be granted an Option for 10,000 Shares on the day he or she is appointed (the
“Nominating & Goveranance Committee Chairperson Grant”). On each anniversary of a
Non-Employee Director’s first Nominating & Goverance Committee Chairperson Grant on which the
Non-Employee Director continues to be the Chairperson of the Nominating & Governance Committee, the
Non-Employee Director will automatically be granted an Option for 10,000 Shares (also a
“Nominating & Goverance Committee Chairperson Grant”). Each Non-Employee Director who is
appointed a new non-Chairperson member of the Nominating & Governance Committee on or after July
26, 2006, will automatically be granted an Option for 7,500 Shares on the day he or she is
appointed. The types of option grant referenced in the preceding two sentences or granted under
this Section 10.6 prior to July 26, 2006, are each hereinafter referred to as a “Nominating &
Governance Committee Grant”. If on each anniversary occuring on or after July 26, 2006, of a
Non-Employee Director’s first Nominating & Goverance Committee Grant the Non-Employee Director is a
non-Chairperson member of the Nominating & Governance Committee and if the Non-Employee Director
has been in continuous service on the Nominating & Goverance Committee since such Nominating &
Goverance Committee Grant, the Non-Employee Director will automatically be granted an Option for
7,500 Shares (each such Option a “Succeeding Nominating & Goverance Committee Grant”).

          10.7 Vesting and Exercisability

               (a) Initial Grants shall become exercisable as they vest as to 25% of the Shares upon the
first anniversary of the date such Option is granted and an additional 2.0833% of the shares each
month thereafter and become fully vested on the fourth anniversary of the date of grant, so long as
the Non-Employee Director continuously remains a director or a consultant of the Company.

               (b) Succeeding Grants shall become exercisable as they vest as to 50% of the Shares upon the
first anniversary of the date such Option is granted and an additional 4.1666% of the Shares each
month thereafter and become fully vested on the second anniversary of the date of grant, so long as
the Non-Employee Director continuously remains a director or a consultant of the Company.

               (c) Each Audit Committee Grant, Succeeding Audit Committee Grant, Compensation Committee
Grant, Succeeding Compensation Committee Grant, Nominating & Governance Committee Grant and
Succeeding Nominating & Goverance Committee Grant shall become exercisable as they vest as to
8.333% of the Shares each month following the date of grant and become fully vested on the first
anniversary of the date of grant, so long as the Non-Employee Director continuously remains a
director or a consultant of the Company.

               (d) Any Option granted to a Non-Employee Director will vest as to 100% of the Shares subject
to such Option, if the Non-Employee Director ceases to be a member of the Board or a consultant of
the Company due to “total disability” or death. For purposes of this Section 10.7(d), “total
disability” shall mean:

9

 

(1) (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
Non-Employee Director is unable to perform each of the material duties of any gainful occupation
for which the Non-Employee Director is or becomes reasonably fitted by training, education or
experience and which total disability is in fact preventing the Non-Employee Director 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 (2) the Company
shall have received from the Non-Employee Director’s primary physician a certification that the
Non-Employee Director’s total disability is likely to be permanent.

               (e) In the event of a Corporate Transaction, the vesting of all Options granted to
Non-Employee Directors pursuant to this Section 10 will accelerate and such Options will become
exercisable in full prior to the consummation of such event at such time and on such conditions as
the Committee determines, and if such Options are not exercised on or prior to the consummation of
the corporate transaction, they shall terminate.

          10.8 Form of Option Grant. Each Option granted under this Section 10 shall be a NQSO
and shall be evidenced by a Non-Employee Director Stock Option Grant Agreement in such form as the
Committee shall from time to time approve and which shall comply with and be subject to the terms
and conditions of this Plan.

          10.9 Exercise Price. The Exercise Price of each Option granted under this Section 10
shall be the Fair Market Value of the Share on the date the Option is granted. The Exercise Price
of an outstanding Option may not be reduced without stockholder approval.

          10.10 Termination of Option. Except as provided in Section 10.7(e) or this Section
10.10, each Option granted under this Section 10 shall expire seven (7) years after its date of
grant. The date on which the Non-Employee Director ceases to be a member of the Board or a
consultant of the Company shall be referred to as the “Non-Employee Director Termination
Date” for purposes of this Section 10.10. An Option may be exercised after the Non-Employee
Director Termination Date only as set forth below:

               (a) Termination Generally. If the Non-Employee Director ceases to be a member of the
Board or consultant of the Company for any reason except death or Disability, then each Option, to
the extent then vested pursuant to Section 10.7 above, then held by such Non-Employee Director may
be exercised by the Non-Employee Director within seven months after the Non-Employee Director
Termination Date, but in no event later than the Expiration Date.

               (b) Death or Disability. If the Non-Employee Director ceases to be a member of the
Board or consultant of the Company because of his or her death or Disability, then each Option, to
the extent then vested pursuant to Section 10.7 above, then held by such Non-Employee Director may
be exercised by the Non-Employee Director or his or her legal representative within twelve months
after the Non-Employee Director Termination Date, but in no event later than the Expiration Date.

     11. PAYMENT FOR SHARE PURCHASES.

          11.1 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
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 of the Company’s Common Stock;

10

 

	 	(d)	 	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;
	 
	 	(e)	 	by tender of property; or
	 
	 	(f)	 	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 the Participant or
Authorized Transferee and an NASD Dealer meeting the requirements of the
Company’s “same day sale” procedures and in accordance with law; or
	 
	 	(2)	 	through a “margin” commitment from Participant or Authorized
Transferee and an NASD Dealer meeting the requirements of the Company’s
“margin” procedures and in accordance with law.

          11.2 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
15 of the Plan.

     12. WITHHOLDING TAXES.

          12.1 Withholding Generally. Whenever Shares are to be issued in satisfaction of
Awards granted under the Plan, the Company may require the Participant to remit 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.

          12.2 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
whole 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 accordance with the
requirements established by the Committee and be in writing in a form acceptable to the Committee.

     13. 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 Authorized Transferee will be a stockholder and have all the rights
of a stockholder with respect to the Shares including the right to vote and receive all dividends
or other distributions made or paid with respect to such Shares; provided, 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 15.

11

 

     14. TRANSFERABILITY. 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;
provided, however that with the consent of the Committee a Participant may transfer a NQSO to an
Authorized Transferee. Transfers by the Participant for consideration are prohibited. Without
such permission by the Committee, a NQSO shall like all other Awards under the Plan be exercisable
(a) during a Participant’s lifetime only by the 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.

     15. 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 (a) the Participant’s
Termination Date or (b) 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 cash equal to the excess of the Fair Market Value of the Shares over
the original Purchase Price.

     16. 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.

     17. ESCROW. 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.

     18. 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 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.

     19. 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.

     20. REPRICING PROHIBITED; EXCHANGE AND BUYOUT OF AWARDS. The repricing of Options or SARs is
prohibited without prior stockholder approval. The Committee may, at any time or from time to
time, authorize the Company, with prior stockholder approval, in the case of an Option or SAR
exchange, 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

12

 

payment in cash, Shares or other consideration, based
on such terms and conditions as the Committee and the Participant shall agree; provided, however,
that in no event will an Option with an Exercise Price above the Fair Market Value at the time of
such proposed buyout be repurchased.

     21. CORPORATE TRANSACTIONS.

          21.1 Assumption or Replacement of Awards by Successor. Except as provided for in
Section 10.7(e), 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.

          21.2 Other Treatment of Awards. Subject to any greater rights granted to Participants
under Section 21.1, 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.

          21.3 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.

     22. ADOPTION AND STOCKHOLDER APPROVAL. The Plan was adopted by the Compensation and
Organizational Development Committee on August 26, 2004. The Plan shall become effective upon
approval by stockholders of the Company, consistent with applicable laws.

     23. TERM OF PLAN. The Plan will terminate three years following the date it originally became
effective upon approval by stockholders of the Company.

     24. 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. 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 or pursuant to the listing requirements of the national securities market on
which the Shares are listed. In addition, no amendment that is detrimental to a Participant may be
made to any outstanding Award without the consent of the Participant.

     25. 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

13

 

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.

     26. 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,
Stock Bonus, Stock Appreciation Right or Restricted Stock Unit.

     (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 Compensation and Organizational Development Committee of the
Board or such other 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.

     (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) “Effective Date” means the date stockholders approve the Plan pursuant
to Section 22 of the Plan.

14

 

     (k) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the
regulations promulgated thereunder.

     (l) “Executive Officer” means a person who is an “executive officer” of the Company as
defined in Rule 3b-7 promulgated under the Exchange Act.

     (m) “Exercise Price” means the price at which a Participant who holds an Option or SAR
may purchase the Shares issuable upon exercise of the Option or SAR.

     (n) “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 closing price on the NASDAQ National Market on such date or if such
date is not a trading date, the closing price on the NASDAQ National Market on
the last trading date that precedes such date;
	 
	 	(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.

     (o) “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.

     (p) “ISO” means an Incentive Stock Option within the meaning of the Code.

     (q) “NASD Dealer” means broker-dealer that is a member of the National Association of
Securities Dealers, Inc.

     (r) “NQSO” means a nonqualified stock option that does not qualify as an
ISO.

     (s) “Option” means an Award pursuant to Section 5 of the Plan.

     (t) “Non-Employee Director” means a member of the Company’s Board of Directors who is
not a current or former employee of the Company or any Parent or Subsidiary.

     (u) “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.

     (v) “Participant” means a person who receives an Award under the Plan.

     (w) “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;

15

 

	 	(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.

     (x) “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 the Award.

     (y) “Plan” means this Intuit Inc. 2005 Equity Incentive Plan, as amended from time to
time.

     (z) “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.

     (aa) “Purchase Price” means the price to be paid for Shares acquired under the Plan,
other than Shares acquired upon exercise of an Option.

     (bb) “Restricted Stock Award” means an award of Shares pursuant to Section 6 of the Plan.

     (cc) “Restricted Stock Unit” means an Award granted pursuant to Section 9 of the Plan.

     (dd) “RSU Agreement” means an agreement evidencing a Restricted Stock Unit Award
granted pursuant to Section 9 of the Plan.

     (ee) “SAR Agreement” means an agreement evidencing a Stock Appreciation Right granted
pursuant to Section 8 of the Plan.

     (ff) “SEC” means the Securities and Exchange Commission.

     (gg) “Securities Act” means the Securities Act of 1933, as amended, and the
regulations promulgated thereunder.

     (hh) “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 21, and any successor security.

     (ii) “Stock Appreciation Right” means an Award granted pursuant to Section 8 of the Plan.

     (jj) “Stock Bonus” means an Award granted pursuant to Section 7 of the Plan.

16

 

     (kk) “Stock Option Agreement” means the agreement which evidences a Stock Option,
granted pursuant to Section 5 of the Plan.

     (ll) “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.

     (mm) “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.

     (nn) “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”).

17

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