Document:

Exhibit 10.03

 

EXHIBIT 10.03

INTUIT INC.

1996 EMPLOYEE STOCK PURCHASE PLAN

As Amended Through July 30, 2003

     1.     Establishment of Plan. The Company proposes to grant options for
purchase of the Company’s Common Stock, $0.01 par value, to eligible employees
of the Company and Participating Subsidiaries pursuant to this Plan. A total
of 5,400,0001 shares of the Company’s Common Stock is reserved for issuance
under this Plan. Such number shall be subject to adjustments effected in
accordance with Section 14 of this Plan. The Company intends this Plan to
qualify as an “employee stock purchase plan” under Section 423 of the Code
(including any amendments to or replacements of such Section), and this Plan
shall be so construed. Capitalized terms not defined in the text are defined
in Section 26 below. Any term not expressly defined in this Plan that is
defined in Section 423 of the Code shall have the same definition herein.

     2.     Purpose. The purpose of this Plan is to provide eligible employees of
the Company and Participating Subsidiaries with a convenient means of acquiring
an equity interest in the Company through payroll deductions, to enhance such
employees’ sense of participation in the affairs of the Company and
Participating Subsidiaries, and to provide an incentive for continued
employment.

     3.     Administration. This Plan shall be administered by the Committee.
Subject to the provisions of this Plan and the limitations of Section 423 of
the Code or any successor provision in the Code, all questions of
interpretation or application of this Plan and any agreement or document
executed pursuant to this Plan shall be determined by the Committee and its
decisions shall be final and binding upon all Participants. The Committee
shall have full power and authority to prescribe, amend and rescind rules and
regulations relating to this Plan, including determining the forms and
agreements used in connection with this 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 or her designee,
the authority to approve revisions to the forms and agreements used in
connection with this Plan that are designed to facilitate administration of the
Plan and that are not inconsistent with the Plan or with any resolutions of the
Committee relating to the Plan. The Committee may amend this Plan as described
in Section 25 below. Members of the Committee shall receive no compensation
for their services in connection with the administration of this Plan, other
than standard fees as established from time to time by the Board for services
rendered by Committee members serving on Board committees. All expenses
incurred in connection with the administration of this Plan shall be paid by
the Company.

	1 On July 30,
2003 the Company’s Board of Directors amended this Plan to
increase the authorized share pool by 500,000 shares from 4,900,000 to
5,400,000 shares. This 500,000 share increase is subject to stockholder
approval at the Company’s October 30, 2003 Annual Meeting.

 

 

Intuit Inc.

1996 Employee Stock Purchase Plan

     4.     Eligibility.

          (a) Prior to the Offering Period commencing December 16, 2001, any
employee of the Company or of any Participating Subsidiary is eligible to
participate in an Offering Period under this Plan, except the following:

               (i) employees who are not employed fifteen (15) days before the beginning
of such Offering Period;

               (ii) employees who are customarily employed for less than twenty (20)
hours per week;

               (iii) employees who are customarily employed for less than five (5)
months in a calendar year; and

               (iv) employees who, together with any other person whose stock would be
attributed to such employee pursuant to Section 424(d) of the Code, own stock
or hold options to purchase stock possessing five percent (5%) or more of the
total combined voting power or value of all classes of stock of the Company or
any of its Subsidiaries or who, as a result of being granted an option under
this Plan with respect to such Offering Period, would own stock or hold options
to purchase stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of stock of the Company or any of its
Subsidiaries.

          (b) Effective with the Offering Period commencing December 16, 2001, any
employee of the Company or of any Participating Subsidiary is eligible to
participate in an Offering Period under this Plan, except the following:

               (i) employees who are not employed fifteen (15) days before the beginning
of such Offering Period; and

               (ii) employees who, together with any other person whose stock would be
attributed to such employee pursuant to Section 424(d) of the Code, own stock
or hold options to purchase stock possessing five percent (5%) or more of the
total combined voting power or value of all classes of stock of the Company or
any of its Subsidiaries or who, as a result of being granted an option under
this Plan with respect to such Offering Period, would own stock or hold options
to purchase stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of stock of the Company or any of its
Subsidiaries.

          (c) An individual who provides services to the Company, or any
Participating Subsidiary, as an independent contractor shall not be considered
an “employee” for purposes of this Section 4 or this Plan, and shall not be
eligible to participate in the Plan, except during such periods as the Company
or the Participating Subsidiary, as applicable, is required to withhold U.S.
federal employment taxes for the individual. This exclusion from participation

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1996 Employee Stock Purchase Plan

shall apply even if the individual is reclassified as an employee, rather than
an independent contractor, for any purpose other than U.S. federal employment
tax withholding.

     5.     Offering Dates.

          (a) Prior to the Offering Period commencing June 16, 2001, Offering
Periods shall be of six (6) months duration commencing on December 16 and June
16 of each year and ending on June 15 and December 15 of each year, except for
the first and second Offering Periods under this Plan. The first Offering
Period began on January 1, 1997 and ended on June 30, 1997, and the second
Offering Period began on July 1, 1997 and ended on December 15, 1997.

          (b) Effective with the Offering Period commencing June 16, 2001, Offering
Periods shall be of twelve (12) months duration commencing on December 16 and
June 16 of each year and ending on the following December 15 and June 15. Each
Offering Period shall consist of two six-month Accrual Periods during which
payroll deductions of the Participants are accumulated under this Plan.

          (c) Effective with the Offering Period commencing June 16, 2003, Offering
Periods shall be of twelve (12) months duration commencing on each June 16,
September 16, December 16 and March 16 and ending on the following June 15,
September 15, December 15 and March 15, respectively. Each Offering Period
shall consist of four three-month Accrual Periods during which payroll
deductions of the Participants are accumulated under this Plan. The Offering
Period commencing December 16, 2002 shall be a transitional Offering Period of
twelve (12) months duration comprised of one six-month Accrual Period
commencing on December 16, 2002 and ending on June 15, 2003 and two three-month
Accrual Periods, the first commencing on June 16, 2003 and ending on September
15, 2003 and the second commencing on September 16, 2003 and ending on December
15, 2003.

          (d) The Committee shall have the power to change the duration of Offering
Periods with respect to future offerings without stockholder approval if such
change is announced prior to the scheduled beginning of the first Offering
Period to be affected.

     6.     Participation in this Plan. An eligible employee may become a
Participant in an Offering Period on the first Offering Date after satisfying
the eligibility requirements by following the enrollment procedures established
by the Company and enrolling in the Plan by the enrollment deadline established
by the Company before such Offering Date. The enrollment deadline shall be the
same for all eligible employees with respect to a given Offering Period. An
eligible employee who does not timely enroll after becoming eligible to
participate in such Offering Period shall not participate in that Offering
Period or any subsequent Offering Period unless such employee follows the
enrollment procedures established by the Company and enrolls in this Plan by
the enrollment deadline established by the Company before a subsequent Offering
Date. A Participant will automatically participate in each Offering Period
commencing immediately following the last day of the prior Offering Period
unless he or she withdraws or is deemed to withdraw from this Plan or
terminates further participation in the Offering Period as set forth in
Sections 11 or 12 below. A

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1996 Employee Stock Purchase Plan

Participant is not required to file any additional agreement in order to
continue participation in this Plan. An employee may only participate in one
Offering Period at a time.

     7.     Grant of Option on Enrollment. Enrollment by an eligible employee in
this Plan with respect to an Offering Period will constitute the grant (as of
the Offering Date) by the Company to such Participant of an option to purchase
on the Purchase Date up to that number of shares of Common Stock of the Company
determined by dividing (a) the amount accumulated in such employee’s payroll
deduction account during the applicable Accrual Period in such Offering Period
by (b) the lower of (i) eighty-five percent (85%) of the Fair Market Value of a
share of the Company’s Common Stock on the Offering Date (but in no event less
than the par value of a share of the Company’s Common Stock), or (ii)
eighty-five percent (85%) of the Fair Market Value of a share of the Company’s
Common Stock on the Purchase Date (but in no event less than the par value of a
share of the Company’s Common Stock); provided, however, that the number of
shares of the Company’s Common Stock subject to any option granted pursuant to
this Plan shall not exceed the maximum number of shares which may be purchased
pursuant to Sections 10(a), 10(b) or 10(c) below with respect to the applicable
Accrual Period. The fair market value of a share of the Company’s Common Stock
shall be determined as provided in Section 8 hereof.

     8.     Purchase Price. The purchase price per share at which a share of
Common Stock will be sold to Participants in any Offering Period shall be
eighty-five percent (85%) of the lesser of:

          (a) The Fair Market Value on the Offering Date; or

          (b) The Fair Market Value on the Purchase Date;

provided, however, that in no event may the purchase price per share of the
Company’s Common Stock be below the par value per share of the Company’s Common
Stock.

     9.     Payment Of Purchase Price; Changes In Payroll Deductions; Issuance Of
Shares.

          (a) The purchase price of the shares is accumulated by regular payroll
deductions made during each Accrual Period in an Offering Period. The
deductions are made as a percentage of the Participant’s compensation in one
percent (1%) increments not less than two percent (2%), nor greater than ten
percent (10%) or such lower limit set by the Committee. Compensation shall
mean base salary and commissions. Payroll deductions shall commence on the
first payday of each Accrual Period and shall end on the last payday that
occurs in such Accrual Period unless sooner altered or terminated as provided
in this Plan. Notwithstanding the foregoing, if the last payday that occurs in
an Accrual Period is within five business days prior to the Purchase Date, the
last payday may be deemed to be the immediately preceding payday, provided that
such determination is made and announced prior to the scheduled beginning of
the applicable Accrual Period.

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1996 Employee Stock Purchase Plan

          (b) A Participant may change the rate of payroll deductions during an
Offering Period as set forth below:

               (i) Effective for Offering Periods commencing on or before December 16,
2002 (and through the first six-month Accrual Period in such Offering Period),
a Participant may lower (but not increase) the rate of payroll deductions
during an Offering Period by filing with the Company a new authorization for
payroll deductions, in which case the new rate shall become effective after the
Company’s receipt of the authorization in accordance with the Company’s
administrative procedures for the Plan and shall continue for the remainder of
the Offering Period unless changed as described below. Such change lowering
the rate of payroll deductions may be made at any time during an Offering
Period, but not more than one (1) change may be made effective during any
Accrual Period. A Participant who lowers his or her rate of payroll deduction
during an Accrual Period may later request to cease payroll deductions during
the same Accrual Period under Section 9(d) below through the first six-month
Accrual Period in the Offering Period commencing December 16, 2002.

               (ii) Effective beginning with the first three-month Accrual Period in the
Offering Period commencing December 16, 2002 and for each subsequent Offering
Period, a Participant may lower or increase the rate of payroll deductions to
be effective with the next Accrual Period in the Offering Period in which the
Participant is enrolled by filing with the Company a new authorization for
payroll deductions. The Participant must file the authorization before the
beginning of the next Accrual Period during the same time period as enrollment
is open under Section 6 above.

          (c) A Participant may increase or decrease the rate of payroll deductions
for any subsequent Offering Period by filing with the Company a new
authorization for payroll deductions before the beginning of such Offering
Period by the deadline established by the Company and in accordance with the
Company’s administrative procedures for the Plan.

          (d) Effective with the Offering Period commencing December 16, 2000 and
ending with the first six-month Accrual Period in the Offering Period
commencing December 16, 2002, a participant may reduce his or her payroll
deduction rate to zero during an Offering Period by filing with the Company a
request to cease payroll deductions. Such request shall be effective after the
Company’s receipt of the request in accordance with the Company’s
administrative procedures for the Plan and provided the payroll deduction
suspension request is made by the deadline established by the Company no
further payroll deductions will be made for the duration of the Offering
Period. Payroll deductions credited to the Participant’s account prior to the
effective date of the request shall be used to purchase shares of Common Stock
of the Company in accordance with Section 9(f) below. A Participant may not
resume making payroll deductions during the Offering Period in which he or she
reduces his or her payroll deduction rate to zero. Unless the Participant
elects to withdraw effective following the purchase in accordance with Section
11 below, the Participant’s payroll deductions will automatically restart for
the Offering Period that begins immediately following the Purchase Date at the
rate that was in effect before the Participant filed his or her request to
cease payroll deductions.

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1996 Employee Stock Purchase Plan

          (e) All payroll deductions made for a Participant are credited to his or
her account under this Plan and are deposited with the general funds of the
Company. No interest accrues on the payroll deductions. All payroll
deductions received or held by the Company may be used by the Company for any
corporate purpose, and the Company shall not be obligated to segregate such
payroll deductions.

          (f) On each Purchase Date, so long as this Plan remains in effect and
provided that the Participant has not timely submitted a signed and completed
withdrawal form before that date which notifies the Company that the
Participant wishes to withdraw from that Offering Period under this Plan and
have all payroll deductions accumulated in the account maintained on behalf of
the Participant as of that date returned to the Participant, the Company shall
apply the funds then in the Participant’s account to the purchase of whole
shares of Common Stock reserved under the option granted to such Participant
with respect to the Offering Period to the extent that such option is
exercisable on the Purchase Date. The purchase price per share shall be as
specified in Section 8 of this Plan. Effective with the Offering Period
commencing June 16, 2001, any cash remaining in a Participant’s account after
such purchase of shares because the amount is insufficient to purchase a whole
share shall be returned to the Participant, without interest. Prior to the
Offering Period commencing June 16, 2001, any cash remaining in a Participant’s
account after such purchase of shares because the amount is insufficient to
purchase a whole share shall be carried forward, without interest, into the
next Accrual Period. Any cash remaining in a Participant’s account after such
purchase due to the limitations in Section 10 below shall be returned to the
Participant, without interest. Subject to Section 12 below, no Common Stock
shall be purchased on a Purchase Date on behalf of any employee or former
employee whose participation in this Plan has terminated prior to such Purchase
Date.

          (g) As promptly as practicable after the Purchase Date, the Company shall
issue shares representing the shares purchased.

          (h) During a Participant’s lifetime, such Participant’s option to
purchase shares hereunder is exercisable only by him or her. The Participant
will have no interest or voting right in shares covered by his or her option
until such option has been exercised. Shares issued for the benefit of a
Participant under this Plan will be issued to an account in the name of the
Participant or in the name of the Participant and his or her spouse.

     10. Limitations on Shares to be Purchased.

          (a) No Participant shall be entitled to purchase stock under this Plan at
a rate which, when aggregated with his or her rights to purchase stock under
all other employee stock purchase plans of the Company or any Subsidiary,
exceeds $25,000 in fair market value, determined as of the Offering Date (or
such other limit as may be imposed by the Code) for each calendar year in which
the employee is a Participant in this Plan.

          (b) No more than twice the number of shares that the Participant could
have purchased at the price on an Offering Date may be purchased by a
Participant on any single Purchase Date within that Offering Period.

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1996 Employee Stock Purchase Plan

          (c) No Participant shall be entitled to purchase more than the Maximum
Share Amount on any single Purchase Date. Prior to the commencement of any
Offering Period, the Committee may, in its sole discretion, set a Maximum Share
Amount. In no event shall the Maximum Share Amount exceed the amounts
permitted under Section 10(b) above. If a new Maximum Share Amount is set,
then all Participants must be notified of such Maximum Share Amount prior to
the deadline established by the Company to enroll or change the rate of payroll
deductions for the next Offering Period. Once the Maximum Share Amount is set,
it shall continue to apply with respect to all succeeding Offering Periods
unless revised by the Committee as set forth above.

          (d) If the number of shares to be purchased on a Purchase Date by all
Participants exceeds the number of shares then available for issuance under
this Plan, then the Company will make a pro rata allocation of the remaining
shares in as uniform a manner as shall be reasonably practicable and as the
Committee shall determine to be equitable. In such event, the Company shall
give written notice of such reduction of the number of shares to be purchased
under a Participant’s option to each Participant affected thereby.

          (e) Any payroll deductions accumulated in a Participant’s account which
are not used to purchase stock due to the limitations in this Section 10 shall
be returned to the Participant as soon as practicable after the end of the
applicable Accrual Period, without interest.

     11.     Withdrawal.

          (a) Each Participant may withdraw from an Offering Period under this Plan
by withdrawing from the Plan in accordance to the procedures established by the
Company by the deadline established by the Company for withdrawals.

          (b) Upon withdrawal from this Plan, the accumulated payroll deductions
shall be returned to the withdrawn Participant, without interest, and his or
her interest in this Plan shall terminate. In the event a Participant
withdraws from this Plan in accordance with Section 11(a), he or she may not
resume his or her participation in this Plan during the same Offering Period,
but he or she may participate in any Offering Period under this Plan which
commences on a date subsequent to such withdrawal by filing a new authorization
for payroll deductions in the same manner as set forth above in Section 6 for
initial participation in this Plan.

          (c) If the Fair Market Value on the first day of a current Offering
Period in which a Participant is enrolled is higher than the Fair Market Value
on the first day of any subsequent Offering Period, the current Offering Period
will end following the Purchase Date and the Company will automatically enroll
such Participant in the Offering Period that begins immediately following the
Purchase Date. Any funds accumulated in the Participant’s account prior to the
first day of such subsequent Offering Period will be applied to the purchase of
shares on the Purchase Date immediately prior to the first day of such
subsequent Offering Period. A Participant does not need to file any forms with
the Company to

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1996 Employee Stock Purchase Plan

automatically be enrolled in the subsequent Offering Period in accordance with
this Section 11(c).

     12. Termination of Employment.

          (a) Effective with the Offering Period commencing December 16, 2001 and
ending with the Purchase Date of the first six-month Accrual Period in the
Offering Period commencing December 16, 2002, if a Participant terminates
employment for any reason within ninety (90) days prior to a Purchase Date,
payroll deductions credited to the Participant’s account prior to the date his
or her employment terminates shall be used to purchase shares of Common Stock
of the Company in accordance with Section 9(f) above. If, however, the
Participant or, in the event of the Participant’s death, the Participant’s
legal representative, elects to withdraw from the Plan in accordance with
Section 11 above, payroll deductions credited to the Participant’s account
prior to the date his or her employment terminates shall be returned to the
Participant or, in the case of his or her death, to his or her legal
representative, without interest. If a Participant terminates employment for
any reason more than ninety (90) days prior to a Purchase Date, payroll
deductions credited to the Participant’s account prior to the date his or her
employment terminates shall be returned to him or her or, in the case of his or
her death, to his or her legal representative, without interest.

          (b) Prior to the Offering Period commencing December 16, 2001 and
effective immediately following the first Purchase Date of the Offering Period
commencing December 16, 2002 and for subsequent Offering Periods, termination
of a Participant’s employment for any reason, including retirement, death or
the failure of a Participant to remain an eligible employee under Section 4
above, immediately terminates his or her participation in this Plan. In such
event, the payroll deductions credited to the Participant’s account will be
returned to him or her or, in the case of his or her death, to his or her legal
representative, without interest.

          (c) For purposes of this Section 12, an employee will not be deemed to
have terminated employment or failed to remain an eligible employee in the case
of sick leave, military leave, or any other leave of absence approved by the
Committee; provided that such leave is for a period of not more than ninety
(90) days or reemployment upon the expiration of such leave is guaranteed by
contract or statute.

     13.     Return of Payroll Deductions. In the event a Participant’s interest
in this Plan is terminated by withdrawal, termination of employment or
otherwise, or in the event this Plan is terminated, the Company shall promptly
deliver to the Participant all payroll deductions credited to such
Participant’s account. No interest shall accrue on the payroll deductions of a
Participant in this Plan.

     14.     Capital Changes. Subject to any required action by the stockholders
of the Company, the number of shares of Common Stock covered by each option
under this Plan which has not yet been exercised and the number of shares of
Common Stock which have been authorized for issuance under this Plan but have
not yet been placed under option, as

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1996 Employee Stock Purchase Plan

well as the price per share of Common Stock covered by each option under this
Plan which has not yet been exercised, shall be proportionately adjusted for
any increase or decrease in the number of issued and outstanding shares of
Common Stock of the Company resulting from a stock split or the payment of a
stock dividend (but only on the Common Stock) or any other increase or decrease
in the number of issued and outstanding shares of Common Stock effected without
receipt of any 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”; and provided further, that the
price per share of Common Stock shall not be reduced below its par value per
share. Such adjustment shall be made by the Committee, whose determination
shall be final, binding and conclusive. Except as expressly provided herein,
no issue 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 option.

     In the event of the proposed dissolution or liquidation of the Company,
each Offering Period will terminate immediately prior to the consummation of
such proposed action and the accrued payroll deductions will be returned to
each Participant without interest, unless otherwise provided by the Committee.
The Committee may, in the exercise of its sole discretion in such instances,
shorten each Offering Period in progress and establish a new Purchase Date (the
“Special Purchase Date”) upon which the accrued payroll deductions of each
Participant who does not elect to withdraw his or her payroll deductions will
be used to purchase whole shares with any remaining cash balance in a
Participant’s account being returned to such Participant as soon as
administratively practicable following the Special Purchase Date. In the event
of a proposed sale of all or substantially all of the assets of the Company, or
the merger or consolidation of the Company with or into another corporation,
each option under this Plan shall be assumed or an equivalent option shall be
substituted by such successor corporation or a parent or subsidiary of such
successor corporation. In the event the successor corporation does not assume
or substitute such options, the Committee shall shorten each Offering Period in
progress and establish a Special Purchase Date upon which the accrued payroll
deductions of each Participant who does not elect to withdraw his or her
payroll deductions will be used to purchase whole shares with any remaining
cash balance in a Participant’s account being returned to such Participant as
soon as administratively practicable following the Special Purchase Date. The
price at which each share may be purchased on such Special Purchase Date shall
be calculated in accordance with Section 8 above as if “Purchase Date” were
replaced by “Special Purchase Date”.

     The Committee may, if it so determines in the exercise of its sole
discretion, also make provision for adjusting the Reserves, as well as the
price per share of Common Stock covered by each outstanding option, in the
event that the Company effects one or more reorganizations, recapitalizations,
rights offerings or other increases or reductions of shares of its outstanding
Common Stock, or in the event of the Company being consolidated with or merged
into any other corporation; provided, that the price per share of Common Stock
shall not be reduced below its par value per share.

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1996 Employee Stock Purchase Plan

     15.     Nonassignability. Neither payroll deductions credited to a
Participant’s account nor any rights with regard to the exercise of an option
or to receive shares under this Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 22 hereof) by the Participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be void and
without effect.

     16.     Reports. Individual accounts will be maintained for each Participant
in this Plan. Each Participant shall receive promptly after the end of each
Offering Period a report of his or her account setting forth the total payroll
deductions accumulated, the number of shares purchased, the per share price
thereof and any cash remaining in the Participant’s account after the shares
are purchased.

     17.     Notice of Disposition. Effective January 1, 2003, in order that the
Company may properly report the compensation attributable to a Participant’s
disposition of shares purchased under this Plan, the Company may require
Participants to keep shares purchased under this Plan in an account established
with a broker dealer approved by the Company until the Participant sells, gifts
or transfers such shares by descent or distribution. Prior to such Offering
Period, each Participant may be required to notify the Company if the
Participant disposes of any of the shares purchased in any Offering Period
pursuant to this Plan if such disposition occurs within the Notice Period. The
Company may, at any time during the Notice Period, place a legend or legends on
any certificate representing shares acquired pursuant to this Plan requesting
the Company’s transfer agent to notify the Company of any transfer of the
shares. The obligation of the Participant to provide such notice shall
continue notwithstanding the placement of any such legend on the certificates.

     18.     No Rights to Continued Employment. Neither this Plan nor the grant
of any option hereunder shall confer any right on any employee to remain in the
employ of the Company or any Subsidiary, or restrict the right of the Company
or any Subsidiary to terminate such employee’s employment.

     19.     Equal Rights And Privileges. All eligible employees shall have equal
rights and privileges with respect to this Plan so that this Plan qualifies as
an “employee stock purchase plan” within the meaning of Section 423 or any
successor provision of the Code and the related regulations. Any provision of
this Plan which is inconsistent with Section 423 or any successor provision of
the Code shall, without further act or amendment by the Company or the
Committee, be reformed to comply with the requirements of Section 423. This
Section 19 shall take precedence over all other provisions in this Plan.

     20.     Notices. All notices or other communications by a Participant to the
Company under or in connection with this Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

     21.     Term; Stockholder Approval. This Plan became effective October 7,
1996, the date on which it was adopted by the Board and was approved by the
stockholders of the

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1996 Employee Stock Purchase Plan

Company, in a manner permitted by applicable corporate law, within twelve (12)
months after the date this Plan was adopted by the Board. No purchase of
shares pursuant to this Plan occurred prior to such stockholder approval. This
Plan shall continue until the earlier to occur of (a) termination of this Plan
by the Board or the Committee (which termination may be effected at any time),
(b) issuance of all of the shares of Common Stock reserved for issuance under
this Plan, or (c) ten (10) years from the adoption of this Plan by the Board.

     22.     Death of a Participant.

          (a) Effective with the Offering Period commencing December 16, 2001 and
ending with the Purchase Date of the first six-month Accrual Period in the
Offering Period commencing December 16, 2002, in the event of a Participant’s
death, payroll deductions in his or her account shall, in accordance with
Section 12(a) above, and the Participant’s will or the laws of descent and
distribution to the extent consistent with this Plan, either (i) purchase
Shares on the next Purchase Date in accordance with Section 12(a); or (ii) be
refunded to the Participant’s legal representative in accordance with Section
12(a). Effective immediately following the first Purchase Date of the Offering
Period commencing December 16, 2002 and for subsequent Offering Periods in the
event of a Participant’s death, payroll deductions in his or her account shall
be refunded to the Participant’s legal representative in accordance with
Section 12(b). Any shares purchased under the Plan on behalf of a Participant
are to be treated in accordance with the Participant’s will or the laws of
descent and distribution.

          (b) Prior to the Offering Period commencing December 16, 2001, a
Participant may file a written designation of a beneficiary who is to receive
any shares and cash, if any, from the Participant’s account under this Plan in
the event of such Participant’s death subsequent to the end of an Offering
Period but prior to delivery to him of such shares and cash. In addition, a
Participant may file a written designation of a beneficiary who is to receive
any cash from the Participant’s account under this Plan in the event of such
Participant’s death prior to a Purchase Date.) Such designation of beneficiary
may be changed by the Participant at any time by written notice. In the event
of the death of a Participant and in the absence of a beneficiary validly
designated under this Plan who is living at the time of such Participant’s
death, the Company shall deliver such shares or cash to the executor or
administrator of the estate of the Participant, or if no such executor or
administrator has been appointed (to the knowledge of the Company), the
Company, in its discretion, may deliver such shares or cash to the spouse or to
any one or more dependents or relatives of the Participant, or if no spouse,
dependent or relative is known to the Company, then to such other person as the
Company may designate.

     23.     Conditions Upon Issuance of Shares; Limitation on Sale of Shares.
Shares shall not be issued with respect to an option unless the exercise of
such option and the issuance and delivery of such shares pursuant thereto shall
comply with all applicable provisions of law, domestic or foreign, including,
without limitation, the Securities Act of 1933, as amended, the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder, and the requirements of any stock exchange or automated quotation
system upon which the shares may then be listed, and shall be further subject
to the approval of counsel for the Company with respect to such compliance.

- 11 -

 

Intuit Inc.

1996 Employee Stock Purchase Plan

     24.     Applicable Law. The Plan shall be governed by the substantive laws
(excluding the conflict of laws rules) of the State of California.

     25.     Amendment or Termination of this Plan. The Committee may at any time
amend, terminate or extend the term of this Plan, except that any such
termination cannot affect options previously granted under this Plan, nor may
any amendment make any change in an option previously granted which would
adversely affect the right of any Participant.

Notwithstanding the prohibition against affecting options previously granted
under this Plan, this Plan or an Offering Period may be terminated by the
Committee on a Purchase Date or by the Committee’s setting a new Purchase Date
with respect to an Offering Period then in progress if the Committee determines
that termination of the Plan and/or the Offering Period is in the best
interests of the Company and the stockholders or if continuation of the Plan
and/or the Offering Period would cause the Company to incur adverse accounting
charges as a result of a change in the generally accepted accounting rules or
interpretations thereof that are applicable to this Plan.

The Company must obtain stockholder approval for each amendment of this Plan
for which stockholder approval is required by the Code, the rules of any stock
exchange or automated quotation system upon which the Company’s shares may then
be listed, or any other applicable laws or regulation. Such stockholder
approval must be obtained, in a manner permitted by applicable corporate law,
within twelve (12) months of the adoption of such amendment by the Committee.

     26.     Definitions.

	 	(a)	 	“Board” means the Board of Directors of the
Company.
	 
	 	(b)	 	“Code” means the Internal Revenue Code of 1986,
as amended.
	 
	 	(c)	 	“Committee” means a committee appointed by the
Board. If two or more members of the Board are Outside
Directors, the Committee will be comprised of at least two (2)
members of the Board, all of whom are Outside Directors. If
no Committee has been established references to the
“Committee” shall mean the Board.
	 
	 	(d)	 	“Company” means Intuit Inc., a Delaware
corporation.
	 
	 	(e)	 	“Fair Market Value” means as of any date, the
value of a share of the Company’s Common Stock determined as
follows:

		
	 	(i) if such Common Stock is then quoted on the Nasdaq
National Market, its last reported sale price on the Nasdaq
National Market or, if

- 12 -

 

Intuit Inc.

1996 Employee Stock Purchase Plan

		
	 	no such reported sale takes place on such date, the average
of the closing bid and asked prices;

		
	 	(ii) if such Common Stock is publicly traded and is then
listed on a national securities exchange, its last reported
sale price 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;
	 
	 	(iii) if such Common Stock is publicly traded but is not
quoted on the Nasdaq National Market or listed or admitted to
trading on a national securities exchange, the average of the
closing bid and asked prices on such date, as reported in The
Wall Street Journal, for the over-the-counter market; or
	 
	 	(iv) if none of the foregoing is
applicable, by the Board in good faith.

	 	(f)	 	“Maximum Share Amount” means the maximum number
of shares which may be purchased by any employee at any single
Purchase Date.
	 
	 	(g)	 	“Notice Period” is the period beginning two (2)
years from the Offering Date and one (1) year from the
Purchase Date on which such shares were purchase.
	 
	 	(h)	 	“Offering Date” is the first business day of each
Offering Period.
	 
	 	(i)	 	“Offering Period” means through the Offering
Period commencing June 16, 2002, a twelve-month period
containing two six-month Accrual Periods. Effective with the
Offering Period commencing June 16, 2003, Offering Period
means a twelve-month period containing four three-month
Accrual Periods. The transitional Offering Period commencing
December 16, 2002 shall be a twelve-month period containing
one six-month Accrual Period and two three-month Accrual
Periods. Effective prior to June 16, 2001, the Offering
Period was six-months in length and contained one six-month
Accrual Period.
	 
	 	(j)	 	“Outside Directors” means outside directors
within the meaning of Code Section 162(m).
	 
	 	(k)	 	“Participating Subsidiaries” means Subsidiaries
that have been designated by the Committee from time to time
as eligible to participate in this Plan,
	 
	 	(l)	 	“Plan” means this Intuit Inc. 1996 Employee Stock
Purchase Plan, as amended from time to time.

- 13 -

 

Intuit Inc.

1996 Employee Stock Purchase Plan

	 	(m)	 	“Parent Corporation” and “Subsidiary”
(collectively, “Subsidiaries”) shall have the same meanings as
“parent corporation” and “subsidiary corporation” in Code
Sections 424(e) and 424(f).
	 
	 	(n)	 	“Participant” means an employee who meets the
eligibility requirements of Section 4 above and timely enrolls
in the Plan in accordance with Section 6 above.
	 
	 	(o)	 	“Purchase Date” is the last business day of each
Accrual Period.
	 
	 	(p)	 	“Accrual Period” means prior to June 16, 2003, a
six-month period during which payroll deductions are
accumulated and effective June 16, 2003 means, a three-month
period during which payroll deductions are accumulated.
	 
	 	(q)	 	“Reserves” means (i) the number of shares of
Common Stock covered by each option under this Plan which has
not yet been exercised and (ii) the number of shares of Common
Stock which have been authorized for issuance under this Plan
but have not yet been placed under option.

- 14 -Exhibit 10.05

 

EXHIBIT 10.05

INTUIT INC.

1998 OPTION PLAN FOR MERGERS AND ACQUISITIONS

As Amended Through July 29, 2003

     1.     PURPOSE. The purpose of the Plan is to provide incentives to retain
and motivate eligible persons whose present and potential contributions are
important to the success of the Company (or any Parent, Subsidiary or Affiliate
of the Company), by offering those persons an opportunity to participate in the
Company’s future performance through awards of Options. Capitalized terms are
defined in Section 21 if they are not otherwise defined in other sections of
the Plan.

     2.     SHARES SUBJECT TO THE PLAN.

          2.1     Number of Shares Available. Subject to Sections 2.2 and 16, the total
number of Shares reserved and available for grant and issuance pursuant to
Options under the Plan shall be 6,000,000 Shares. Subject to Sections 2.2 and
16, Shares will again be available for grant and issuance in connection with
future Options under the Plan if the Shares: (a) are subject to issuance upon
exercise of an Option but cease to be subject to the Option for any reason
other than exercise of the Option; (b) are issued on exercise of an Option but
are repurchased by the Company at the original issue price because the Shares
are unvested at the time of the Participant’s Termination. At all times the
Company will reserve and keep available a sufficient number of Shares to
satisfy the requirements of all outstanding Options granted under the Plan.

          2.2     Adjustment of Shares. If the number of outstanding Shares is changed
by a stock dividend, recapitalization, stock split, reverse stock split,
subdivision, combination, reclassification or similar change in the capital
structure of the Company, without consideration, then (a) the number of Shares
reserved for issuance under the Plan, (b) the Exercise Prices of and number of
Shares subject to outstanding Options, and (c) the number of Shares subject to
other outstanding Options, will be proportionately adjusted, subject to any
required action by the Board or the stockholders of the Company and compliance
with applicable securities laws; provided that fractions of a Share will not be
issued but will either be paid in cash at Fair Market Value, or will be rounded
up to the nearest Share, as determined by the Committee; and provided further
that the Exercise Price of any Option may not be decreased to below the par
value of the Shares.

     3.     ELIGIBILITY. Only persons who commence providing services to the
Company or any Parent, Subsidiary or Affiliate of the Company as a result of a
merger or acquisition by the Company or any Parent, Subsidiary or Affiliate of
the Company may receive Options under the Plan. Options may be granted to such
individuals only for a period of up to eighteen months following the closing of
the merger or acquisition. Options may be granted to employees, officers,
consultants, independent contractors and advisors of the Company or any Parent,
Subsidiary or Affiliate of the Company. Options awarded to Insiders or to
other individuals who are officers of the Company may not exceed in the
aggregate forty-five percent (45%) of all Shares that are reserved for grant
under the Plan and employees who are not officers of Intuit must receive at
least fifty-one percent (51%) of all Shares that are reserved for grant under
the Plan. Only consultants, contractors and advisors that render bona fide
services not in connection with the offer and sale of securities in a
capital-raising transaction may be granted Options under the Plan. A person
may be granted more than one Option under the Plan.

     4.     ADMINISTRATION.

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

		
	 	(a)     construe and interpret the Plan, any Stock Option Agreement and
any other agreement or document executed pursuant to the Plan;

 

 

		
	 	(b)     prescribe, amend and rescind rules and regulations relating to
the Plan, including determining the forms and agreements used in
connection with the Plan; provided that the Committee may delegate
to the President, the Chief Financial Officer or the officer in
charge of Human Resources, in consultation with the General Counsel,
the authority to approve revisions to the forms and agreements used
in connection with the Plan that are designed to facilitate Plan
administration, and that are not inconsistent with the Plan or with
any resolutions of the Committee relating to the Plan;

		
	 	(c)     select persons to receive Options; provided that the Committee
may delegate to one or more Executive Officers of the Company the
authority to grant an Option under the Plan to Participants who are
not Insiders of the Company;

		
	 	(d)     determine the terms of Options;

		
	 	(e)     determine the number of Shares subject to Options;

		
	 	(f)     determine whether Options will be granted singly, in
combination, or in tandem with, in replacement of, or as
alternatives to, other Options under the Plan or any other incentive
or compensation plan of the Company or any Parent, Subsidiary or
Affiliate of the Company;

		
	 	(g)     grant waivers of Plan or Option conditions;

		
	 	(h)     determine the vesting, exercisability of Options;

		
	 	(i)     correct any defect, supply any omission, or reconcile any
inconsistency in the Plan, any Option or any Stock Option Agreement;

		
	 	(j)     determine whether an Option has been earned;

		
	 	(k)     amend the Plan, except for amendments that increase the number
of Shares available for issuance under the Plan or change the
eligibility criteria for participation in the Plan; or

		
	 	(l)     make all other determinations necessary or advisable for the
administration of the Plan.

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

     5.     OPTIONS. Only nonqualified stock options that do not qualify as
incentive stock options within the meaning of the section 422(b) Code may be
granted under the Plan. The Committee may grant Options to eligible persons
and will determine (i) the number of Shares subject to the Option, (ii) the
Exercise Price of the Option, (iii) the period during which the Option may be
exercised, and (iv) all other terms and conditions of the Option, subject to
the following:

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

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

-2-

 

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

          5.4     Exercise Price. The Exercise Price of an Option will be determined by
the Committee when the Option is granted and may not be less than the Fair
Market Value (and not less than the par value of the Shares) of the Shares on
the date of grant. Payment for the Shares purchased must be made in accordance
with Section 6 of the Plan and the Stock Option Agreement.

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

          5.6     Termination.

     (a)     Vesting. Any Option granted to a Participant will cease to vest on the
Participant’s Termination Date, if the Participant is Terminated for any reason
other than “total disability” (as defined in this Section 5.6(a)) or death (or
his or her death occurs within three months of Termination). Any Option
granted on or after May 31, 2002 to a Participant who is an employee will vest
as to 100% of the Shares subject to such Option, if the Participant is
Terminated due to “total disability” or death (or his or her death occurs
within three months of Termination) provided that the Participant is either an
employee who has been actively employed by the Company or any Subsidiary for
one year or more or a director. For purposes of this Section 5.6(a) “total
disability” shall mean: (A) (i) for so long as such definition is used for
purposes of the Company’s group life insurance and accidental death and
dismemberment plan or group long term disability plan, that the Participant is
unable to perform each of the material duties of any gainful occupation for
which the Participant is or becomes reasonably fitted by training, education or
experience and which total disability is in fact preventing the Participant
from engaging in any employment or occupation for wage or profit; or, (ii) if
such definition has changed, such other definition of “total disability” as
determined under the Company’s group life insurance and accidental death and
dismemberment plan or group long term disability plan; and (B) the Company
shall have received from the Participant’s primary physician a certification
that the Participant’s total disability is likely to be permanent. Any Option
granted to an employee on or after May 31, 2002 who is Terminated by the
Company, or any Subsidiary or Parent within one year following the date of a
Corporate Transaction (other than the merger or acquisition that made the
Participant eligible for Options under this Plan), will immediately vest as to
such number of Shares as the Participant would have been vested twelve months
after the date of Termination had the Participant remained employed for that
twelve month period.

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

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

-3-

 

          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     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. The Committee may reduce the
Exercise Price of outstanding Options without the consent of Participants
affected, by a written notice to them; provided, however, that the Exercise
Price may not be reduced below the minimum Exercise Price that would be
permitted under Section 5.4 of the Plan for Options granted on the date the
action is taken to reduce the Exercise Price; and provided, further, that the
Exercise Price shall not be reduced below the par value of the Shares.

     6.     PAYMENT FOR SHARE PURCHASES.

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

		
	 	(a)     in cash (by check);

		
	 	(b)     by cancellation of indebtedness of the Company to the
Participant;

		
	 	(c)     by surrender of shares that either: (1) were obtained by the
Participant in the public market; or (2) if the shares were not
obtained in the public market, they have been owned by the
Participant for more than six months and have been paid for within
the meaning of SEC Rule 144 (and, if the shares were purchased from
the Company by use of a promissory note, the note has been fully
paid with respect to the Shares);

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

-4-

 

	 	 	 	for a Participant who is an Executive Officer or a director
of the Company, through a “margin” commitment from
Participant and an NASD Dealer whereby the NASD Dealer
irrevocably commits to forward the Exercise Price directly
to the Company before the Company issues the Shares.

          6.2     Issuance of Shares. Upon payment of the applicable Exercise Price (or
a commitment for payment from the NASD Dealer designated by the Participant 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 in the name of the NASD Dealer designated by the
Participant 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 12 of the Plan.

     7.     WITHHOLDING TAXES.

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

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

     8.     PRIVILEGES OF STOCK OWNERSHIP. No Participant will have any rights as
a stockholder of the Company with respect to any Shares until the Shares are
issued to the Participant. After Shares are issued to the Participant, the
Participant will be a stockholder and have all the rights of a stockholder with
respect to the Shares; provided, however, that if the Shares are unvested, any
new, additional or different securities the Participant 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 unvested Shares; provided further,
that the Participant will have no right to retain such dividends or
distributions with respect to Shares that are repurchased at the Participant’s
original Exercise Price pursuant to Section 10.

     9.     TRANSFERABILITY. Options granted under the Plan, and any interest
therein, shall not be transferable or assignable by the Participant, and may
not be made subject to execution, attachment or similar process, otherwise than
by will or by the laws of descent and distribution or as consistent with the
Plan and specific Stock Option Agreement provisions relating thereto. During
the lifetime of the Participant an Option shall be exercisable only by the
Participant, and any elections with respect to an Option may be made only by
the Participant.

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

     11.     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

-5-

 

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.

     12.     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.

     13.     SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Option shall not
be effective unless the Option 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 Option 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.

     14.     NO OBLIGATION TO EMPLOY. Nothing in the Plan or any Option 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, Subsidiary or Affiliate of the Company or limit in any
way the right of the Company or any Parent, Subsidiary or Affiliate of the
Company to terminate Participant’s employment or other relationship at any
time, with or without cause.

     15.     EXCHANGE AND BUYOUT OF OPTIONS. The Committee may, at any time or
from time to time, authorize the Company, with the consent of the respective
Participants, to issue new Options in exchange for the surrender and
cancellation of any or all outstanding Options. 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.

     16.     CORPORATE TRANSACTIONS.

          16.1     Assumption or Replacement of Options by Successor. In the event of
(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 Options 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, or (d) 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), any or all
outstanding Options 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 Options or
provide substantially similar consideration to Participants as was provided to
stockholders (after taking into account the existing provisions of the
Options). 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 Options, as provided above, pursuant to a transaction
described in this Section 16.1, such Options shall expire in connection with
the transaction at such time and on such conditions as the Board shall
determine. 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.

-6-

 

          16.2     Other Treatment of Options. Subject to any greater rights granted to
Participants under Section 16.1, in the event of the occurrence of any
transaction described in Section 16.1, any outstanding Options shall be treated
as provided in the applicable agreement or plan of merger, consolidation,
dissolution, liquidation, sale of assets or other “corporate transaction.”

          16.3     Assumption of Options 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 Option 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 Option 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 Option 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.

     17.     ADOPTION. The Plan is effective on the date that it is adopted by the Board (the “Effective Date”).

     18.     TERM OF PLAN. The Plan will terminate ten years from the Effective
Date.

     19.     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 Stock Option Agreement or instrument to be executed pursuant to the
Plan. In addition, pursuant to Section 4.1(k), the Board has delegated to the
Committee the authority to make certain amendments to the Plan. In addition,
no amendment that is detrimental to a Participant may be made to any
outstanding Option without the consent of the Participant.

     20.     NONEXCLUSIVITY OF THE PLAN; UNFUNDED PLAN. Neither the adoption of
the Plan by the Board 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 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 Options 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.

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

		
	 	(a)     “Affiliate” means any corporation that directly, or indirectly
through one or more intermediaries, controls or is controlled by, or
is under common control with, another corporation, where “control”
(including the terms “controlled by” and “under common control
with”) means the possession, direct or indirect, of the power to
cause the direction of the management and policies of the
corporation, whether through the ownership of voting securities, by
contract or otherwise.

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

		
	 	(c)     “Code” means the Internal Revenue Code of 1986, as amended, and
the regulations promulgated thereunder.

		
	 	(d)     “Committee” means the committee appointed by the Board to
administer the Plan, or if no committee is appointed, the Board.
Each member of the Committee shall be (i) a “non-employee director”
for purposes of Section 16 and Rule 16b-3 of the Exchange Act, and
(ii) an “outside director” for purposes of Section 162(m) of the
Code, unless the Board has fewer than two such outside directors.

		
	 	(e)     “Company” means Intuit Inc., a corporation organized under the
laws of the State of Delaware, or any successor corporation.

-7-

 

		
	 	(f)     “Disability” means a disability within the meaning of Section
22(e)(3) of the Code, as determined by the Committee.

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

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

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

		
	 	(j)     “Fair Market Value” means, as of any date, the value of a share
of the Company’s Common Stock determined as follows:

		
	 	(1)     if such Common Stock is then quoted on the NASDAQ National
Market, its last reported sale price on the NASDAQ National
Market on such date or, if no such reported sale takes place
on such date, the average of the closing bid and asked prices;

		
	 	(2)     if such Common Stock is publicly traded and is then listed
on a national securities exchange, the last reported sale
price on such date or, if no such reported sale takes place on
such date, the average of the closing bid and asked prices on
the principal national securities exchange on which the Common
Stock is listed or admitted to trading;

		
	 	(3)     if such Common Stock is publicly traded but is not quoted
on the NASDAQ National Market nor listed or admitted to
trading on a national securities exchange, the average of the
closing bid and asked prices on such date, as reported by The
Wall Street Journal, for the over-the-counter market; or

		
	 	(4)     if none of the foregoing is applicable, by the Board of
Directors of the Company in good faith.

		
	 	(k)     “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.

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

		
	 	(m)     “Option” means an award of an option to purchase Shares pursuant
to Section 5 of the Plan.

		
	 	(n)     “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 Option 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.

		
	 	(o)     “Participant” means a person who receives an Option under the
Plan.

		
	 	(p)     “Plan” means this Intuit Inc. 1998 Option Plan for Mergers and
Acquisitions, as amended from time to time.

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

-8-

 

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

		
	 	(t)     “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 16, and any successor security.

		
	 	(u)     “Stock Option Agreement” means an agreement evidencing the award
of an Option.

		
	 	(v)     “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 Option, 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.

		
	 	(w)     “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, consultant, independent contractor
or advisor, to the Company or a Parent, Subsidiary or Affiliate of
the Company; 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 Options 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”).

-9-

 

Grant No. <<GrantNumber>>

INTUIT INC. 1998 OPTION PLAN GRANT AGREEMENT

Intuit Inc., a Delaware corporation (the “Company”), hereby grants a
non-qualified stock option (“Option”) to Participant named below, pursuant to
the Company’s 1998 Option Plan for Mergers and Acquisitions, as amended through
July 29, 2003 (the “Plan”), to purchase shares of the Company’s Common Stock,
$0.01 par value per share (“Common Stock”) as described below. This Option is
subject to all of terms and conditions of the Plan, which is attached to this
Agreement and incorporated into this Agreement by reference. All capitalized
terms in this Agreement that are not defined in the Agreement have the meanings
given to them in the Plan.

Name of Participant:

Social Security Number:

Address:

	 	 	 
	Number of Shares:	 	 
	Type of Option:	 	
Non-qualified Stock Option
	Exercise Price
Per Share:	 	 
	Date of Grant:	 	 
	First Vesting Date:	 	 
	Expiration Date:	 	 
	Vesting Schedule:	
So long as Participant is providing services to the
Company, 33 1/3% of the Shares will vest on the First
Vesting Date; then 2.778% of the Shares will vest on
each monthly anniversary of the First Vesting Date
until 100% vested. On Termination, the Option shall
either cease to vest or, in the event Participant has
been actively employed by the Company for one year or
more and becomes totally disabled or dies as provided
in Section 5.6 of the Plan, accelerate in full.
Following termination, Participant may exercise the
Option only as provided in Section 5.6 of the Plan.
Vesting may also be suspended in accordance with
Company policies, as described in Section 5.6 of the
Plan.

To exercise this Option, Participant must follow the exercise procedures
established by the Company, as described in Section 5.5 of the Plan. This
Option may be exercised only with respect to vested shares. Payment of
the Exercise Price for the Shares may be made in cash (by check) and/or,
if a public market exists for the Company’s Common Stock, by means of a
Same-Day-Sale Commitment or Margin Commitment from Participant and an NASD
Dealer (as described in Section 6.1 of the Plan). Upon exercise of this
Option, Participant understands that the Company may be required to
withhold taxes.

This Agreement (including the Plan, which is incorporated by reference)
constitutes the entire agreement between the Company and the Participant with
respect to this Option, and supersedes all prior agreements or promises with
respect to the Option. Except as provided in the Plan, this Agreement may be
amended only by a written document signed by the Company and the Participant.
Subject to the terms of the Plan, the Company may assign any of its rights and
obligations under this Agreement, and this Agreement shall be binding on, and
inure to the benefit of, the successors and assigns of the Company. Subject
to the restrictions on transfer of the Option described in the Plan, this
Agreement shall be binding on Participant’s permitted successors and assigns
(including heirs, executors, administrators and legal representatives). All
notices required under this Agreement or the Plan must be mailed or
hand-delivered to the Company or the Participant at their respective addresses
set forth in this Agreement, or at such other address designated in writing by
either of the parties to the other.

Additional information about the Plan and this Option (including certain tax
consequences of exercising the Option and disposing of the Shares) is contained
in the Prospectus for the Plan. A copy of the Prospectus is available on the
stock options pages of the Intuit Legal Department intranet web site, or by
calling Sharon Savatski, the Company’s Stock Plan Analyst, at (650) 944-6504.

The Company has signed this Option Agreement effective as the Date of Grant.

	 	 	 	 	 
	 	 	INTUIT INC.

2632 Marine Way

Mountain View, California 94043
	 	 	 	 	 
	 	 	
By:
	 	 
	 	 	 	 	

	 	 	 	 	Robert B. Henske, Senior Vice President
	 	 	 	 	and Chief Financial Officer

PARTICIPANT’S ACCEPTANCE

I accept this Agreement and agree to the terms and conditions in this
Agreement and the Plan. I acknowledge that I have received a copy of the
Company’s 1998 Option Plan for Mergers and Acquisitions, and I understand
and
agree that this Agreement is not meant to interpret, extend, or
change the Plan in any way, nor to represent the full terms of the
Plan. If there is any discrepancy, conflict or omission between
this Agreement and the provisions of the Plan as interpreted by the
Company, the provisions of the Plan shall apply.

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