Document:

exv10w1

 

Exhibit 10.1

2008 ACQUISITION EQUITY INCENTIVE PLAN

Effective Date: May 15, 2008

1. Purpose of the Plan.

     The purpose of this Plan is to promote the success of Phoenix Technologies Ltd., a Delaware
corporation (the “Company”), by creating an incentive compensation arrangement that will assist the
Company in attracting and retaining employees of entities acquired by the Company with exceptional
abilities, and encouraging ownership in the Company by such individuals, thereby encouraging such
persons to act in the stockholders’ interests. The Company intends that the Plan be reserved for
persons to whom the Company may issue securities without stockholder approval as an inducement
grant pursuant to Rule 4350(i)(1)(A)(iv) of the Marketplace Rules of the Nasdaq Stock Market, Inc.

2. Definitions.

     As used herein, the following definitions shall apply:

(a) “Administrator” means the Board, any Committees or such delegates of the Board as shall
be administering the Plan in accordance with Section 4 of the Plan.

(b) “Affiliate” means any entity that is directly or indirectly controlled by the Company or
any entity in which the Company has a significant ownership interest as determined by the
Administrator.

(c) “Applicable Laws”  means the requirements relating to the administration of stock option
and stock award plans under U.S. federal and state laws, any stock exchange or quotation
system on which the Company has listed or submitted for quotation the Common Stock to the
extent provided under the terms of the Company’s agreement with such exchange or quotation
system and, with respect to Awards subject to the laws of any foreign jurisdiction where
Awards are, or will be, granted under the Plan, the laws of such jurisdiction.

(d) “Award” means a Stock Award or Option granted in accordance with the terms of the Plan.

(e) “Awardee” means an Employee of the Company or any Affiliate who has been granted an
Award under the Plan, subject to the eligiblility requirements in Section 5 of the Plan.

(f) “Award Agreement” means a Stock Award Agreement and/or Option Agreement, which may be in
written or electronic format, in such form and with such

 

 

terms and conditions as may be specified by the Administrator, evidencing the terms and
conditions of an individual Award. Each Award Agreement is subject to the terms and
conditions of the Plan.

(g) “Board” means the Board of Directors of the Company.

(h) “Change in Control”  means, unless such term or an equivalent term is otherwise defined
with respect to an Award by the Awardee’s Option Agreement, Stock Award Agreement or written
contract of employment or service, the occurrence of any of the following:

(i) the sale, lease, conveyance or other disposition of all or substantially all of
the Company’s assets to any “person” (as such term is used in Section 13(d) of the
Exchange Act), entity or group of persons acting in concert;

(ii) any person or group of persons becoming the “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing 50% or more of the total voting power represented by the
Company’s then outstanding voting securities;

(iii) a merger, consolidation or other transaction of the Company with or into any
other corporation, entity or person, other than a transaction in which the holders
of at least 50% of the shares of capital stock of the Company outstanding
immediately prior thereto continue to hold (either by voting securities remaining
outstanding or by their being converted into voting securities of the surviving
entity or its controlling entity) at least 50% of the total voting power represented
by the voting securities of the Company or such surviving entity (or its controlling
entity) outstanding immediately after such transaction; or

(iv) a contest for the election or removal of members of the Board that results in
the removal from the Board of at least 50% of the incumbent members of the Board.

(i) “Code” means the United States Internal Revenue Code of 1986, as amended.

(j) “Committee” means the compensation committee of the Board or a committee of Directors
appointed by the Board in accordance with Section 4 of the Plan.

(k) “Common Stock” means the common stock of the Company.

(l) “Company” means Phoenix Technologies Ltd., a Delaware corporation, or its successor.

(m) “Consultant” means any person engaged by the Company or any Affiliate to render services
to such entity as an advisor or consultant.  

(n) “Director” means a member of the Board.

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(o) “Employee” means a regular, active employee of the Company or any Affiliate, including
an Officer and/or Inside Director. The Administrator shall determine whether or not the
chairman of the Board qualifies as an “Employee.” Within the limitations of Applicable Law,
the Administrator shall have the discretion to determine the effect upon an Award and upon
an individual’s status as an Employee in the case of (i) any individual who is classified by
the Company or its Affiliate as leased from or otherwise employed by a third party or as
intermittent or temporary, even if any such classification is changed retroactively as a
result of an audit, litigation or otherwise, (ii) any leave of absence approved by the
Company or an Affiliate, (iii) any transfer between locations of employment with the Company
or an Affiliate or between the Company and any Affiliate or between any Affiliates, (iv) any
change in the Awardee’s status from an Employee to a Consultant or Director, and (v) at the
request of the Company or an Affiliate an Employee becomes employed by any partnership,
joint venture or corporation not meeting the requirements of an Affiliate in which the
Company or an Affiliate is a party.

(p) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

(q) “Fair Market Value” means, as of any date, the value of a share of Common Stock or other
property as determined by the Administrator, in its discretion, subject to the following:

(i) If, on such date, the Common Stock is listed on a national or regional
securities exchange or market system, including without limitation the Nasdaq Global
Market, the Fair Market Value of a share of Common Stock shall be the closing price
on such date of a share of Common Stock (or the mean of the closing bid and asked
prices of a share of Common Stock if the stock is so quoted instead) as quoted on
such exchange or market system constituting the primary market for the Common Stock,
as reported in The Wall Street Journal or such other source as the
Administrator deems reliable. If the relevant date does not fall on a day on which
the Common Stock has traded on such securities exchange or market system, the date
on which the Fair Market Value shall be established shall be the last day on which
the Common Stock was so traded prior to the relevant date, or such other appropriate
day as shall be determined by the Administrator, in its discretion.

(ii) If, on such date, the Common Stock is not listed on a national or regional
securities exchange or market system, the Fair Market Value of a share of Common
Stock shall be as determined by the Administrator in good faith using a reasonable
application of a reasonable valuation method without regard to any restriction other
than a restriction which, by its terms, will never lapse.

(r) “Grant Date” means, for all purposes, the date on which the Administrator approves the
grant of an Award, or such other date as is determined by the Administrator.

(s) “Insider Director” means a Director who is an Employee.

(t) “Nasdaq” means the Nasdaq Stock Market, Inc. or its successor.

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(u) “Nonstatutory Stock Option” means an Option not intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code and the regulations promulgated
thereunder.

(v) “Officer” means a person who is an officer of the Company within the meaning of
Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

(w) “Option” means a right granted under Section 8 to purchase a number of Shares at such
exercise price, at such times, and on such other terms and conditions as are specified in
the agreement or other documents evidencing the Option (the “Option Agreement”). Only
Nonstatutory Stock Options may be granted under the Plan.

(x) “Participant” means the Awardee or any person (including any estate) to whom an Award
has been assigned or transferred as permitted hereunder.

(y) “Plan” means this Phoenix Technologies Ltd. 2008 Acquisition Equity Incentive Plan.

(z) “Share” means a share of the Common Stock, as adjusted in accordance with Section 12 of
the Plan.

(aa) “Stock Appreciation Right” means a right to receive cash and/or shares of Common Stock
based on a change in the Fair Market Value of a specific number of shares of Common Stock
between the grant date and the exercise date granted under Section 11. 

(bb) “Stock Award”  means an award or issuance of Shares, Stock Units, Stock Appreciation
Rights or other similar awards made under Section 10 of the Plan, the grant, issuance,
retention, vesting, settlement, and/or transferability of which is subject during specified
periods of time to such conditions (including continued employment or performance
conditions) and terms as are expressed in the agreement or other documents evidencing the
Award (the “Stock Award Agreement”).

(cc) “Stock Unit” means a bookkeeping entry representing an amount equivalent to the Fair
Market Value of one Share (or a fraction or multiple of such value), payable in cash,
property or Shares. Stock Units represent an unfunded and unsecured obligation of the
Company, except as otherwise provided for by the Administrator.

(dd) “Subsidiary” means any company (other than the Company) in an unbroken chain of
companies beginning with the Company, provided each company in the unbroken chain (other
than the Company) owns, at the time of determination, stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other companies in such
chain.

(ee) “Termination of Employment” shall mean ceasing to be an Employee, Consultant or
Director, as determined in the sole discretion of the Administrator. The Administrator
shall determine whether any corporate transaction, such as a sale or spin-

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off of a division or business unit, or a joint venture, shall be deemed to result in a
Termination of Employment.

(ff) “Total and Permanent Disability” shall have the meaning set forth in Section 22(e)(3)
of the Code.

3. Stock Subject to the Plan.

(a)
Aggregate Limits. Subject to the provisions of Section 12 of the Plan, the maximum
aggregate number of Shares that may be sold or issued under the Plan is 650,000. Shares
subject to Awards granted under the Plan that are cancelled, expire or are forfeited shall
be available for re-grant under the Plan. If an Awardee pays the exercise or purchase price
of an Award granted under the Plan through the tender of Shares, or if Shares are tendered
or withheld to satisfy any Company withholding obligations, the number of Shares so tendered
or withheld shall not become available for re-issuance thereafter under the Plan.

4. Administration of the Plan.

     (a) Procedure.

(i)
Multiple Administrative Bodies. The Plan shall be administered by the Board,
a Committee and/or other delegates approved by the Board consistent with Applicable
Law.

(ii)
Approval of Awards. Awards under the Plan shall be approved by either the
Compensation Committee of the Board or a majority of the Company’s independent
directors within the meaning of Nasdaq Rule 4200(a)(15). To the extent desirable to
qualify transactions hereunder as exempt under Rule 16b-3 promulgated under the
Exchange Act (“Rule 16b-3”), Awards to Officers and Inside Directors shall be made
by the entire Board or a Committee of two or more “non-employee directors” within
the meaning of Rule 16b-3.

(iii) Delegation of Authority for the Day-to-Day Administration of the
Plan. Except to the extent prohibited by Applicable Law, the Administrator may
delegate to one or more individuals the day-to-day administration of the Plan and
any of the functions assigned to it in this Plan. Such delegation may be revoked at
any time.

(iv)
Nasdaq. The Plan will be administered in a manner that complies with any
applicable Nasdaq or stock exchange listing requirements.

(b)
Powers of the Administrator. Subject to the provisions of the Plan and, in the case
of a Committee or delegates acting as the Administrator, subject to the specific duties
delegated to such Committee or delegates, the Administrator shall have the authority, in its
discretion:

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(i) to select the Employees (including Inside Directors) of the Company or its
Affiliates to whom Awards are to be granted hereunder;

(ii) to determine the number of shares of Common Stock to be covered by each Award
granted hereunder;

(iii) to determine the type of Award to be granted to the selected Awardees;

(iv) to approve forms of Award Agreements for use under the Plan;

(v) to determine the terms and conditions, not inconsistent with the terms of the
Plan, of any Award granted hereunder. Such terms and conditions include, but are
not limited to, the exercise and/or purchase price (if applicable), the time or
times when an Award may be exercised (which may or may not be based on performance
criteria), the vesting schedule, any vesting and/or exercisability acceleration or
waiver of forfeiture restrictions, the acceptable forms of consideration, the term,
and any restriction or limitation regarding any Award or the Shares relating
thereto, based in each case on such factors as the Administrator, in its sole
discretion, shall determine and may be established at the time an Award is granted
or thereafter;

(vi) to correct administrative errors;

(vii) to construe and interpret the terms of the Plan (including sub-plans and Plan
addenda) and Awards granted pursuant to the Plan;

(viii) to adopt rules and procedures relating to the operation and administration of
the Plan to accommodate the specific requirements of local laws and procedures.
Without limiting the generality of the foregoing, the Administrator is specifically
authorized (A) to adopt the rules and procedures regarding the conversion of local
currency, withholding procedures and handling of stock certificates which vary with
local requirements and (B) to adopt sub-plans and Plan addenda as the Administrator
deems desirable, to accommodate foreign laws, regulations and practice;

(ix) to prescribe, amend and rescind rules and regulations relating to the Plan,
including rules and regulations relating to sub-plans and Plan addenda;

(x) to modify or amend each Award, including, but not limited to, the acceleration
of vesting and/or exercisability, provided, however, that any such amendment is
subject to Section 13 of the Plan and except as set forth in that Section, may not
impair any outstanding Award unless agreed to in writing by the Participant;

(xi) to allow Participants to satisfy withholding tax amounts by electing to have
the Company withhold from the Shares to be issued upon exercise of an Option or
vesting of a Stock Award that number of Shares having a Fair Market Value equal to
the amount required to be withheld. The Fair Market Value of the

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Shares to be withheld shall be determined in such manner and on such date that the
Administrator shall determine or, in the absence of provision otherwise, 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 such form and
under such conditions as the Administrator may provide;

(xii) to authorize any person to execute on behalf of the Company any instrument
required to effect the grant of an Award previously granted by the Administrator;

(xiii) to impose such restrictions, conditions or limitations as it determines
appropriate as to the timing and manner of any resales by a Participant or other
subsequent transfers by the Participant of any Shares issued as a result of or under
an Award, including without limitation, (A) restrictions under an insider trading
policy or under any other Company policy relating to Company stock and stock
ownership and (B) restrictions as to the use of a specified brokerage firm for such
resales or other transfers;

(xiv) to provide, either at the time an Award is granted or by subsequent action,
that an Award shall contain as a term thereof, a right, either in tandem with the
other rights under the Award or as an alternative thereto, of the Participant to
receive, without payment to the Company, a number of Shares, cash or a combination
thereof, the amount of which is determined by reference to the value of the Award;
and

(xv) to make all other determinations deemed necessary or advisable for
administering the Plan and any Award granted hereunder.

(c)
Effect of Administrator’s Decision. All decisions, determinations and interpretations
by the Administrator regarding the Plan, any rules and regulations under the Plan and the
terms and conditions of any Award granted hereunder, shall be final and binding on all
Participants and on all other persons. The Administrator shall consider such factors as it
deems relevant, in its sole and absolute discretion, to making such decisions,
determinations and interpretations including, without limitation, the recommendations or
advice of any officer or other employee of the Company and such attorneys, consultants and
accountants as it may select.

5. Eligibility.

     Awards may be granted only to persons to whom the Company may issue securities without
stockholder approval in accordance with Nasdaq Rule 4350(i)(1)(A)(iv).

6. Effectiveness and Term of Plan.

     The Plan shall become effective upon approval by the Compensation Committee of the Board and
shall continue in effect until the earliest to occur of (a) its termination by the Board under
Section 13 of the Plan, or (b) the date on which all of the shares of Common Stock available for
issuance under the Plan have been issued. .

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7. Term of Award.

     The term of each Award shall be determined by the Administrator and stated in the Award
Agreement. In the case of an Option, the term shall be ten (10) years from the Grant Date or such
shorter term as may be provided in the Award Agreement; provided that the term may be ten and
one-half (10 1/2) years (or a shorter period) in the case of Options granted to Employees in certain
jurisdictions outside the United States as determined by the Administrator.

8. Options.

     The Administrator may grant an Option or provide for the grant of an Option, either from time
to time in the discretion of the Administrator or automatically upon the occurrence of specified
events, including, without limitation, the achievement of performance goals, the satisfaction of an
event or condition within the control of the Awardee or within the control of others.

(a)
Option Agreement. Each Option Agreement shall contain provisions regarding (i) the
number of Shares that may be issued upon exercise of the Option, (ii) the type of Option,
(iii) the exercise price of the Shares and the means of payment for the Shares, (iv) the
term of the Option, (v) such terms and conditions on the vesting and/or exercisability of an
Option as may be determined from time to time by the Administrator, (vi) restrictions on the
transfer of the Option or the Shares issued upon exercise of the Option and forfeiture
provisions and (vii) such further terms and conditions, in each case not inconsistent with
this Plan as may be determined from time to time by the Administrator.

(b)
Exercise Price. The per Share exercise price shall be no less than one hundred
percent (100%) of the Fair Market Value per Share on the Grant Date.

(c)
No Option Repricings. Other than in connection with a change in the Company’s
capitalization (as described in Section 12(a) of the Plan), the exercise price of an Option
may not be reduced without stockholder approval.

(d)
Vesting Period and Exercise Dates. Options granted under this Plan shall vest and/or
be exercisable at such time and in such installments during the period prior to the
expiration of the Option’s term as determined by the Administrator. The Administrator shall
have the right to make the timing of the ability to exercise any Option granted under this
Plan subject to continued employment, the passage of time and/or such performance
requirements as deemed appropriate by the Administrator. At any time after the grant of an
Option, the Administrator may reduce or eliminate any restrictions surrounding any
Participant’s right to exercise all or part of the Option.

(e)
Form of Consideration. The Administrator shall determine the acceptable form of
consideration for exercising an Option, including the method of payment, either through the
terms of the Option Agreement or at the time of exercise of an Option. Acceptable forms of
consideration may include:

(i) cash;

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(ii) check or wire transfer;

(iii) subject to the Company’s discretion to refuse for any reason and at any time
to accept such consideration and subject to any conditions or limitations
established by the Administrator, other Shares held by the Participant which (x) in
the case of Shares acquired upon exercise of an option, if required to avoid adverse
accounting consequences, such Shares shall have been owned by the Awardee for more
than six (6) months on the date of surrender, and (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which said Option shall be exercised;

(iv) consideration received by the Company under a broker-assisted sale and
remittance program acceptable to the Administrator;

(v) cashless “net exercise” arrangement pursuant to which the Company will reduce
the number of Shares issued upon exercise by the largest whole number of Shares
having an aggregate Fair Market Value that does not exceed the aggregate exercise
price; provided that the Company shall accept a cash or other payment from the
Participant to the extent of any remaining balance of the exercise price not
satisfied by such reduction in the number of whole Shares to be issued;

(vi) such other consideration and method of payment for the issuance of Shares to
the extent permitted by Applicable Laws; or

(vii) any combination of the foregoing methods of payment.

(f) Effect of Termination on Options

(i)
Generally. Unless otherwise provided for by the Administrator or in the
Option Agreement, upon an Awardee’s Termination of Employment other than as a result
of circumstances described in Sections 8(f)(ii) and (iii) below, the Option shall
remain exercisable for three (3) months following the Awardee’s Termination of
Employment; provided that an Option granted to a Director or Officer shall remain
exercisable for six (6) months following the Awardee’s Termination of Employment.
In any case the Option shall not be exerisable beyond the expiration date of the
Option. The Option shall automatically terminate at the end of such period to the
extent the Awardee has not exercised it within such period.

(ii)
Disability of Awardee. Unless otherwise provided for by the Administrator,
upon an Awardee’s Termination of Employment as a result of the Awardee’s disability,
including Total and Permanent Disability, all outstanding Options granted to such
Awardee that were vested and exercisable as of the date of the Awardee’s Termination
of Employment may be exercised by the Awardee until the earlier of (A) twelve (12)
months following Awardee’s Termination of Employment as a result of Awardee’s
disability, including Total and Permanent Disability or (B) the expiration of the
term of such Option. If the Awardee does

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not exercise such Option within the time specified, the Option (to the extent not
exercised) shall automatically terminate.

(iii)
Death of Awardee. Unless otherwise provided for by the Administrator, upon
an Awardee’s Termination of Employment as a result of the Awardee’s death, all
outstanding Options granted to such Awardee that were vested and exercisable as of
the date of the Awardee’s death may be exercised until the earlier of (A) twelve
(12) months following the Awardee’s death or (B) the expiration of the term of such
Option. If an Option is held by the Awardee when he or she dies, such Option may be
exercised, to the extent the Option is vested and exercisable, by the beneficiary
designated by the Awardee (as provided in Section 16 of the Plan), the executor or
administrator of the Awardee’s estate or, if none, by the person(s) entitled to
exercise the Option under the Awardee’s will or the laws of descent or distribution;
provided that the Company need not accept exercise of an Option by such beneficiary,
executor or administrator unless the Company has satisfactory evidence of such
person’s authority to act as such. If the Option is not so exercised within the
time specified, such Option (to the extent not exercised) shall automatically
terminate.

(iv)
Other Terminations of Employment. The Administrator may provide in the
applicable Option Agreement for different treatment of Options upon Termination of
Employment of the Awardee than that specified above.

(v)
Extension of Exercise Period. The Administrator shall have full power and
authority to extend the period of time for which an Option is to remain exercisable
following an Awardee’s Termination of Employment from the periods set forth in
Sections 8(f)(i), (ii) and (iii) above or in the Option Agreement to such greater
time as the Board shall deem appropriate, provided that in no event shall such
Option be exercisable later than the date of expiration of the term of such Option
as set forth in the Option Agreement.

(g)
Leave of Absence. The Administrator shall have the discretion to determine whether
and to what extent the vesting of Options shall be tolled during any unpaid leave of
absence; provided, however, that in the absence of such determination, vesting of Options
shall be tolled during any leave that is not a leave required to be provided to the Awardee
under Applicable Law. In the event of military leave, vesting shall toll during any unpaid
portion of such leave, provided that, upon an Awardee’s returning from military leave (under
conditions that would entitle him or her to protection upon such return under the Uniform
Services Employment and Reemployment Rights Act), he or she shall be given vesting credit
with respect to Options to the same extent as would have applied had the Awardee continued
to provide services to the Company throughout the leave on the same terms as he or she was
providing services immediately prior to such leave.

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9. Exercise of Option.

(a) Procedure for Exercise.

(i) Any Option granted hereunder shall be exercisable according to the terms of the
Plan and at such times and under such conditions as determined by the Administrator
and set forth in the respective Option Agreement.

(ii) An Option shall be deemed exercised when the Company receives (A) written or
electronic notice of exercise (in accordance with the Option Agreement) from the
person entitled to exercise the Option; (B) full payment for the Shares with respect
to which the related Option is exercised; and (C) payment of applicable withholding
taxes (if any).

(iii) An Option may not be exercised for a fraction of a Share.

(b) Rights as a Stockholder. The Company shall issue (or cause to be issued) such Shares as
soon as administratively practicable after the Option is exercised. Shares issued upon
exercise of an Option shall be issued in the name of the Participant or, if requested by the
Participant, in the name of the Participant and his or her spouse. Unless provided
otherwise by the Administrator or pursuant to this Plan, until the Shares are issued (as
evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any other rights as
a stockholder shall exist with respect to the Shares subject to an Option, notwithstanding
the exercise of the Option.  

10. Stock Awards.

(a)
Stock Award Agreement. Each Stock Award Agreement shall contain provisions regarding
(i) the number of Shares subject to such Stock Award or a formula for determining such
number, (ii) the purchase price of the Shares, if any, and the means of payment for the
Shares, (iii) the performance criteria (including Qualifying Performance Criteria) , if any,
and level of achievement versus these criteria that shall determine the number of Shares
granted, issued, retainable and/or vested, (iv) such terms and conditions on the grant,
issuance, vesting, settlement and/or forfeiture of the Shares as may be determined from time
to time by the Administrator, (v) restrictions on the transferability of the Stock Award and
(vi) such further terms and conditions in each case not inconsistent with this Plan as may
be determined from time to time by the Administrator.

(b)
Restrictions and Performance Criteria. The grant, issuance, retention, settlement
and/or vesting of each Stock Award or the Shares subject thereto may be subject to such
performance criteria and level of achievement versus these criteria as the Administrator
shall determine, which criteria may be based on financial performance, personal performance
evaluations and/or completion of service by the Awardee.

(c)
Forfeiture. Unless otherwise provided for by the Administrator, upon the Awardee’s
Termination of Employment, the Stock Award and the Shares subject thereto shall be
forfeited, provided that to the extent that the Participant purchased or earned any Shares,
the Company shall have a right to repurchase the unvested Shares at such price and on such
terms and conditions as the Administrator determines.

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(d) Rights as a Stockholder. Unless otherwise provided by the Administrator in the Award
Agreement, the Participant shall have the rights equivalent to those of a stockholder and
shall be a stockholder only after Shares are issued (as evidenced by the appropriate entry
on the books of the Company or of a duly authorized transfer agent of the Company) to the
Participant. Unless otherwise provided by the Administrator, a Participant holding Stock
Units shall not be entitled to receive dividend payments or any credit therefor as if he or
she was an actual stockholder.

(e) Stock Appreciation Rights.

(i) General. Stock Appreciation Rights may be granted either alone, in addition
to, or in tandem with other Awards granted under the Plan. The Board may grant
Stock Appreciation Rights to eligible Participants subject to terms and conditions
not inconsistent with this Plan and determined by the Board. The specific terms and
conditions applicable to the Participant shall be provided for in the Stock Award
Agreement. Stock Appreciation Rights shall be exercisable, in whole or in part, at
such times as the Board shall specify in the Stock Award Agreement.

(ii) Exercise of Stock Appreciation Right. Upon the exercise of a Stock
Appreciation Right, in whole or in part, the Participant shall be entitled to a
payment in an amount equal to the excess of the Fair Market Value on the date of
exercise of a fixed number of Shares covered by the exercised portion of the Stock
Appreciation Right, over the Fair Market Value on the Grant Date of the Shares
covered by the exercised portion of the Stock Appreciation Right (or such other
amount calculated with respect to Shares subject to the Award as the Board may
determine). The amount due to the Participant upon the exercise of a Stock
Appreciation Right shall be paid in such form of consideration as determined by the
Board and may be in cash, Shares or a combination thereof, over the period or
periods specified in the Stock Award Agreement. A Stock Award Agreement may place
limits on the amount that may be paid over any specified period or periods upon the
exercise of a Stock Appreciation Right, on an aggregate basis or as to any
Participant. A Stock Appreciation Right shall be considered exercised when the
Company receives written notice of exercise in accordance with the terms of the
Stock Award Agreement from the person entitled to exercise the Stock Appreciation
Right.

(iii) Nonassignability of Stock Appreciation Rights. Except as determined by the
Administrator, no Stock Appreciation Right shall be assignable or otherwise
transferable by the Participant except by will or by the laws of descent and
distribution.

11. Other Provisions Applicable to Awards.

	 	(a)	 	Non-Transferability of Awards.  Unless determined otherwise by the
Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred,
or disposed of in any manner for value other than by beneficiary

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	 	 	 	designation, will or by the laws of descent or distribution. The Administrator may
in its discretion make an Award transferable to an Awardee’s family member or any
other person or entity as it deems appropriate. If the Administrator makes an Award
transferable, either at the time of grant or thereafter, such Award shall contain
such additional terms and conditions as the Administrator deems appropriate, and any
transferee shall be deemed to be bound by such terms upon acceptance of such
transfer.

	 	(b)	 	Tax Withholding Obligation. As a condition of the grant, issuance, vesting,
exercise or settlement of an Award granted under the Plan, the Participant shall make
such arrangements as the Administrator may require for the satisfaction of any
applicable federal, state, local or foreign withholding tax obligations that may arise
in connection with such grant, issuance, vesting, exercise or settlement of the Award.
The Company shall not be required to issue any Shares under the Plan until such
obligations are satisfied.
	 
	 	(c)	 	Compliance with Section 409A. Notwithstanding anything to the contrary
contained herein, to the extent that the Administrator determines that any Award
granted under the Plan is subject to Code Section 409A and unless otherwise specified
in the applicable Award Agreement, the Award Agreement evidencing such Award shall
incorporate the terms and conditions necessary for such Award to avoid the consequences
described in Code Section 409A(a)(1), and to the maximum extent permitted under
Applicable Law (and unless otherwise stated in the applicable Award Agreement), the
Plan and the Award Agreements shall be interpreted in a manner that results in their
conforming to the requirements of Code Section 409A(a)(2), (3) and (4) and any
Department of Treasury or Internal Revenue Service regulations or other interpretive
guidance issued under Section 409A (whenever issued, the “Guidance”). Notwithstanding
anything to the contrary in this Plan (and unless the Award Agreement provides
otherwise, with specific reference to this sentence), to the extent that a Participant
holding an Award that constitutes “deferred compensation” under Section 409A and the
Guidance is a “specified employee” (also as defined thereunder), no distribution or
payment of any amount shall be made before a date that is six (6) months following the
date of such Participant’s “separation from service” (as defined in Section 409A and
the Guidance) or, if earlier, the date of the Participant’s death.
	 
	 	(d)	 	Deferral of Award Benefits. The Administrator may in its discretion and upon
such terms and conditions as it determines appropriate permit one or more Participants
whom it selects to (a) defer compensation payable pursuant to the terms of an Award, or
(b) defer compensation arising outside the terms of this Plan pursuant to a program
that provides for deferred payment in satisfaction of such other compensation amounts
through the issuance of one or more Awards. Any such deferral arrangement shall be
evidenced by an Award Agreement in such form as the Administrator shall from time to
time establish, and no such deferral arrangement shall be a valid and binding
obligation unless evidenced by a fully executed Award Agreement, the form of which the
Administrator has approved, including through the Administrator’s establishing a
written program

13

 

	 	 	 	(the “Program”) under this Plan to govern the form of Award Agreements participating
in such Program. Any such Award Agreement or Program shall specify the treatment of
dividends or dividend equivalent rights (if any) that apply to Awards governed
thereby, and shall further provide that any elections governing payment of amounts
pursuant to such Program shall be in writing, shall be delivered to the Company or
its agent in a form and manner that complies with Code Section 409A and the
Guidance, and shall specify the amount to be distributed in settlement of the
deferral arrangement, as well as the time and form of such distribution in a manner
that complies with Code Section 409A and the Guidance.

12. Adjustments upon Changes in Capitalization, Dissolution or Change in Control.

	 	(a)	 	Changes in Capitalization. Subject to any required action by the
stockholders of the Company, the number of shares of Common Stock covered by each
outstanding Award, the number of shares of Common Stock which have been authorized for
issuance under the Plan, but as to which no Awards have yet been granted or which have
been returned to the Plan upon cancellation, forfeiture or expiration of an Award, the
price per Share subject to each such outstanding Award, the number of Shares issuable
pursuant to Automatic Director Options and the share limits set forth in Section 3 and
shall be proportionately adjusted for any increase or decrease in the number of issued
   shares of Common Stock resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any convertible
securities of the Company shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Administrator, whose determination
in that respect shall be final, binding and conclusive. Except as expressly provided
herein, no issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment by
reason thereof shall be made with respect to, the number or price of shares of Common
Stock subject to an Award.
	 
	 	(b)	 	Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Administrator shall notify each Participant as soon as
practicable prior to the effective date of such proposed transaction. To the extent it
has not been previously exercised or the Shares subject thereto issued to the Awardee
and unless otherwise determined by the Administrator, an Award will terminate
immediately prior to the consummation of such proposed transaction.
	 
	 	(c)	 	Change in Control. In the event there is a Change in Control of the Company,
as determined by the Board or a Committee, the Board or Committee may, in its
discretion, (i) provide for the assumption or substitution of, or adjustment (including
to the number and type of Shares and exercise or purchase price applicable) to, each
outstanding Award; (ii) accelerate the vesting of Options and

14

 

	 	 	 	terminate any restrictions on Stock Awards and/or (iii) provide for termination of
Awards as a result of the Change in Control on such terms and conditions as it deems
appropriate, including providing for the cancellation of Awards for a cash or other
payment to the Participant.

	 	 	 	For purposes of this Section 12(c), an Award shall be considered assumed, without
limitation, if, at the time of issuance of the stock or other consideration upon a
Change in Control, as the case may be, each holder of an Award would be entitled to
receive upon exercise of the Award the same number and kind of shares of stock or
the same amount of property, cash or securities as such holder would have been
entitled to receive upon the occurrence of the transaction if the holder had been,
immediately prior to such transaction, the holder of the number of Shares covered by
the Award at such time (after giving effect to any adjustments in the number of
Shares covered by the Award as provided for in Section 12(c)); provided that if such
consideration received in the transaction is not solely common stock of the
successor corporation, the Administrator may, with the consent of the successor
corporation, provide for the consideration to be received upon exercise of the Award
to be solely common stock of the successor corporation equal to the Fair Market
Value of the per Share consideration received by holders of Common Stock in the
transaction.

13. Amendment and Termination of the Plan.

	 	(a)	 	Amendment and Termination. The Administrator may amend, alter or discontinue
the Plan or any Award Agreement, but any such amendment shall be subject to approval of
the stockholders of the Company in the manner and to the extent required by Applicable
Law. In addition, without limiting the foregoing, unless approved by the stockholders
of the Company, no such amendment shall be made that would:

	 	(i)	 	materially increase the maximum number of Shares for which
Awards may be granted under the Plan, other than an increase pursuant to
Section 12 of the Plan;
	 
	 	(ii)	 	reduce the minimum exercise price at which Options may be
granted under the Plan;
	 
	 	(iii)	 	result in a repricing of Options by (x) reducing the exercise
price of outstanding Options or (y) canceling an outstanding Option held by an
Awardee and re-granting to the Awardee a new Option with a lower exercise
price, in either case other than in connection with a change in the Company’s
capitalization pursuant to Section 12 of the Plan; or
	 
	 	(iv)	 	change the class of persons eligible to receive Awards under the Plan.

	 	(b)	 	Effect of Amendment or Termination. No amendment, suspension or termination
of the Plan shall impair the rights of any Award, unless mutually agreed otherwise
between the Participant and the Administrator, which agreement must be in

15

 

	 	 	 	writing and signed by the Participant and the Company; provided further that the
Administrator may amend an outstanding Award in order to conform it to the
Administrator’s intent (in its sole discretion) that such Award not be subject to
Code Section 409A(a)(1)(B). Termination of the Plan shall not affect the
Administrator’s ability to exercise the powers granted to it hereunder with respect
to Awards granted under the Plan prior to the date of such termination.

	 	(c)	 	Effect of the Plan on Other Arrangements. Neither the adoption of the Plan
by the Board or a Committee nor the submission of the Plan to the stockholders of the
Company for approval shall be construed as creating any limitations on the power of the
Board or any Committee to adopt such other incentive arrangements as it or they may
deem desirable, including without limitation, the granting of restricted stock or stock
options otherwise than under the Plan, and such arrangements may be either generally
applicable or applicable only in specific cases. The value of Awards granted pursuant
to the Plan will not be included as compensation, earnings, salaries or other similar
terms used when calculating an Awardee’s benefits under any employee benefit plan
sponsored by the Company or any Subsidiary except as such plan otherwise expressly
provides.

14. Designation of Beneficiary. 

	 	(a)	 	An Awardee may file a written designation of a beneficiary who is to receive
the Awardee’s rights pursuant to Awardee’s Award or the Awardee may include his or her
Awards in an omnibus beneficiary designation for all benefits under the Plan. To the
extent that Awardee has completed a designation of beneficiary while employed with the
Company, such beneficiary designation shall remain in effect with respect to any Award
hereunder until changed by the Awardee to the extent enforceable under Applicable Law.
	 
	 	(b)	 	Such designation of beneficiary may be changed by the Awardee at any time by
written notice. In the event of the death of an Awardee and in the absence of a
beneficiary validly designated under the Plan who is living at the time of such
Awardee’s death, the Company shall allow the executor or administrator of the estate of
the Awardee to exercise the Award, or if no such executor or administrator has been
appointed (to the knowledge of the Company), the Company, in its discretion, may allow
the spouse or one or more dependents or relatives of the Awardee to exercise the Award
to the extent permissible under Applicable Law or if no spouse, dependent or relative
is known to the Company, then to such other person as the Company may designate.

15. No Right to Awards or to Employment. 

     No person shall have any claim or right to be granted an Award and the grant of any Award
shall not be construed as giving an Awardee the right to continue in the employ or service of the
Company or its Affiliates. Further, the Company and its Affiliates expressly reserve the right, at
any time, to dismiss any Employee, Consultant or Awardee at any time without liability

16

 

or any claim under the Plan, except as provided herein or in any Award Agreement entered into
hereunder.

16. Legal Compliance.

     Subject to Section 20, shares shall not be issued pursuant to the exercise of an Option or
Stock Award unless the exercise of such Option or Stock Award and the issuance and delivery of such
Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel
for the Company with respect to such compliance.

17. Reservation of Shares.    

     The Company, during the term of this Plan, will at all times reserve and keep available such
number of Shares as shall be sufficient to satisfy the requirements of the Plan.

18. Notice.    

     Any written notice to the Company required by any provisions of this Plan shall be addressed
to the Secretary of the Company and shall be effective when received.

19. Governing Law; Interpretation of Plan and Awards.

(a) This Plan and all determinations made and actions taken pursuant hereto shall be
governed by the substantive laws, but not the choice of law rules, of the state of Delaware.

(b) In the event that any provision of the Plan or any Award granted under the Plan is
declared to be illegal, invalid or otherwise unenforceable by a court of competent
jurisdiction, such provision shall be reformed, if possible, to the extent necessary to
render it legal, valid and enforceable, or otherwise deleted, and the remainder of the terms
of the Plan and/or Award shall not be affected except to the extent necessary to reform or
delete such illegal, invalid or unenforceable provision.

(c) The headings preceding the text of the sections hereof are inserted solely for
convenience of reference, and shall not constitute a part of the Plan, nor shall they affect
its meaning, construction or effect.

(d) The terms of the Plan and any Award shall inure to the benefit of and be binding upon
the parties hereto and their respective permitted heirs, beneficiaries, successors and
assigns.

(e) All questions arising under the Plan or under any Award shall be decided by the
Administrator in its total and absolute discretion. In the event the Participant believes
that a decision by the Administrator with respect to such person was arbitrary or
capricious, the Participant may request arbitration with respect to such decision. The
review by the arbitrator shall be limited to determining whether the Administrator’s
decision was arbitrary or capricious. This arbitration shall be the sole and exclusive

17

 

review permitted of the Administrator’s decision, and the Awardee shall as a condition to
the receipt of an Award be deemed to explicitly waive any right to judicial review.

(f) Notice of demand for arbitration shall be made in writing to the Administrator within
thirty (30) days after the applicable decision by the Administrator. The arbitrator shall
be selected from amongst those members of the Board who are neither Administrators nor
Employees. If there are no such members of the Board, the arbitrator shall be selected by
the Board. The arbitrator shall be an individual who is an attorney licensed to practice
law in the State of Delaware. Such arbitrator shall be neutral within the meaning of the
Commercial Rules of Dispute Resolution of the American Arbitration Association; provided,
however, that the arbitration shall not be administered by the American Arbitration
Association. Any challenge to the neutrality of the arbitrator shall be resolved by the
arbitrator whose decision shall be final and conclusive. The arbitration shall be
administered and conducted by the arbitrator pursuant to the Commercial Rules of Dispute
Resolution of the American Arbitration Association. The decision of the arbitrator on the
issue(s) presented for arbitration shall be final and conclusive and may be enforced in any
court of competent jurisdiction.

20. Limitation on Liability.

     The Company and any Affiliate which is in existence or hereafter comes into existence shall
not be liable to a Participant, an Employee, an Awardee or any other persons as to:

(a)
The Non-Issuance of Shares. The non-issuance or sale of Shares (including under
Section 16 above) as to which the Company has been unable, or the Administrator deems it
infeasible, to obtain from any regulatory body having jurisdiction the authority deemed by
the Company’s counsel to be necessary to the lawful issuance and sale of any shares
hereunder; and

(b)
Tax Consequences. Any tax consequence realized by any Participant, Employee, Awardee
or other person due to the receipt, vesting, exercise or settlement of any Option or other
Award granted hereunder or due to the transfer of any Shares issued hereunder. The
Participant is responsible for, and by accepting an Award under the Plan agrees to bear, all
taxes of any nature that are legally imposed upon the Participant in connection with an
Award, and the Company does not assume, and will not be liable to any party for, any cost or
liability arising in connection with such tax liability legally imposed on the Participant.
In particular, Awards issued under the Plan may be characterized by the Internal Revenue
Service (the “IRS”) as “deferred compensation” under the Code resulting in additional taxes,
including in some cases interest and penalties. In the event the IRS determines that an
Award constitutes deferred compensation under the Code or challenges any good faith
characterization made by the Company or any other party of the tax treatment applicable to
an Award, the Participant will be responsible for the additional taxes, and interest and
penalties, if any, that are determined to apply if such challenge succeeds, and the Company
will not reimburse the Participant for the amount of any additional taxes, penalties or
interest that result.

18

 

(c)
Forfeiture. The requirement that Participant forfeit an Award, or the benefits
received or to be received under an Award, pursuant to any Applicable Law.

21. Unfunded Plan.

     Insofar as it provides for Awards, the Plan shall be unfunded. Although bookkeeping accounts
may be established with respect to Awardees who are granted Stock Awards under this Plan, any such
accounts will be used merely as a bookkeeping convenience. The Company shall not be required to
segregate any assets which may at any time be represented by Awards, nor shall this Plan be
construed as providing for such segregation, nor shall the Company nor the Administrator be deemed
to be a trustee of stock or cash to be awarded under the Plan. Any liability of the Company to any
Participant with respect to an Award shall be based solely upon any contractual obligations which
may be created by the Plan; no such obligation of the Company shall be deemed to be secured by any
pledge or other encumbrance on any property of the Company. Neither the Company nor the
Administrator shall be required to give any security or bond for the performance of any obligation
which may be created by this Plan.

19exv10w01

 

Exhibit 10.01

INTUIT INC.

2005 EQUITY INCENTIVE PLAN

(As Amended on April 23, 2008)

     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, 46,000,000 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 46,000,000 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 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.

1

 

     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 subplans, 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 both
domestically and abroad, 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 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

2

 

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 penalties 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.

          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

3

 

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.

          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

4

 

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.

     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

5

 

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 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

6

 

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 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.

7

 

          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.

          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 occurring 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 occurring 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 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 occurring 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

8

 

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 & Governance 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 & Governance Committee Chairperson Grant”). On each anniversary of a
Non-Employee Director’s first Nominating & Governance 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 & Governance 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 occurring on or after July 26, 2006, of a
Non-Employee Director’s first Nominating & Governance 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 & Governance Committee since such Nominating &
Governance Committee Grant, the Non-Employee Director will automatically be granted an Option for
7,500 Shares (each such Option a “Succeeding Nominating & Governance Committee Grant”).

          10.7
Acquisition Committee Grants. Each Non-Employee Director who
became a member of the Acquisition Committee prior to April 23, 2008, will
be granted an Option for 7,500 Shares on the next regularly scheduled option grant date for
employees after April 23, 2008. Each Non-Employee Director who is appointed a new member
of the Acquisition Committee on or after April 23, 2008, 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 sentences are each hereinafter referred to as an “Acquisition Committee
Grant”. On each anniversary of a Non-Employee Director’s first Acquisition Committee Grant, if
the Non-Employee Director is a member of the Acquisition Committee and has been in
continuous service on the Acquisition Committee since such Acquisition Committee Grant, the
Non-Employee Director will automatically be granted an Option for 7,500 Shares (each such Option a
“Succeeding Acquisition Committee Grant”). If a
Non-Employee Director is appointed Chairperson of the Acquisition
Committee, then each Acquisition Committee Grant and Succeeding
Acquisition Committee Grant made to that Non-Employee Director during
the term of his or her appointment as Chairperson shall be an
option for 10,000 shares, rather than 7,500 shares.

          10.8 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, Succeeding
Nominating & Governance Committee Grant, Acquisition Committee Grant and Succeeding Acquisition
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.

9

 

               (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 10.8(d), “total
disability” shall mean: (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.

          10.9 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.

          10.10 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.

          10.11 Termination of Option. Except as provided in Section 10.8(e) or this Section
10.11, 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 10.11. 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 10.8 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 10.8 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);

10

 

	 	(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;
	 
	 	(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

11

 

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.

     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.

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     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 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 10.8(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 five 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.

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     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 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).

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     (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.

     (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.

15

 

     (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;
	 
	 	(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.

16

 

     (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.

     (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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