Document:

exv10wxay

 

Exhibit 10(a)

The Toro Company

Annual Management Incentive Plan II

	1.  	Plan Purpose. The purpose of The Toro Company Annual Management Incentive Plan II (the
“Plan”) is to enhance stockholder value of The Toro Company (the “Company”) by providing an
annual incentive to reinforce achievement of the Company’s performance goals (“Performance
Goals”); to link a significant portion of a participating officer’s annual compensation to the
achievement by the Company, and in certain cases, a division or individual, of Performance
Goals and to attract, motivate and retain officers and general managers on a competitive basis
by making awards based on annual achievement of Performance Goals (“Annual Performance
Awards”).

	2.  	Eligibility and Participation. Within the first 90 days of each fiscal year, or before the
first 25% of a shorter performance period has elapsed, the Compensation and Human Resources
Committee (the “Committee”) shall select as recipients of Annual Performance Awards (“Plan
Participants”) those officers and general managers of the Company who, through their position
or performance, can have a significant, positive impact on the Company’s financial results. A
Plan Participant is selected to participate in the Plan for one fiscal year, but may be
selected again. Newly-hired and newly-promoted officers and general managers may be selected
as Plan Participants after the first 90 days of a fiscal year subject to the provisions of
this paragraph and paragraph 4.a. To the extent any provision of the Plan or action by the
Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law
and deemed advisable by the Committee.

	3.  	Award Amounts.

	 	a.  	Target Payout. The target amount that may be paid with respect to an Annual
Performance Award (the “Target Payout”) shall be determined by the Committee and
shall be based on a percentage of a Plan Participant’s actual annual base salary at
the time of grant (“Participation Factor”), within the range established by this
paragraph and subject to adjustment as provided in the last sentence of this
paragraph. The Participation Factors, which are intended to reflect a Plan
Participant’s level of responsibility, are up to 100% for the Chairman and Chief
Executive Officer, up to 85% for the President and Chief Operating Officer, up to 75%
for other elected officers and up to 65% for other officers. The Chief Executive
Officer may approve modifications to the foregoing Participation Factors for any
participant who is not a person referred to in Section 162(m) of the Internal Revenue
Code of 1986, as amended, or the regulations thereunder (“Section 162(m)”), if such
modification is based on level of responsibility. The Committee may establish curves,
matrices or other measurements for prorating the amount of payouts for achievement of
Performance Goals at less or greater than the Target Payout.
	 
	 	b.  	Maximum Payout. The Committee may also establish a maximum potential payout
amount (the “Maximum Payout”) with respect to an Annual Performance Award of up to
200% of the Target Payout in the event Performance Goal targets are exceeded by an
amount established by the Committee at the time Performance Goals are established.
The Committee may establish curves, matrices or other measurements for prorating the
amount of payouts for achievement of Performance Goals at greater than the Target
Payout but less than the Maximum Payout.

 

 

	 	c.  	Division Payout. At the time an Annual Performance Award is made, the
Committee may establish supplemental division-specific Performance Goals
(“Supplemental Division Performance Goals”) and may provide that achievement of a
Supplemental Division Performance Goal at or above an established target level shall
be required in order to earn a Target Payout or Maximum Payout. The Committee shall
also have the discretion to reduce by an amount up to 20% the amount that would
otherwise be paid under the division payout formula to a division officer or general
manager based on the Committee’s evaluation of the quality of division performance.
	 
	 	d.  	Strategic Performance Measure Payout. At the time an Annual Performance
Award is made, the Committee may increase the Target Payout and the Maximum Payout
(as either may be prorated in accordance with paragraphs 3.a. and 3.b.) by up to 20%
but to not more than 200% of the Target Payout, for selected Plan Participants
(“Strategic Performance Participants”), to reflect individual strategic performance
measures (“SPM Performance Goals”) established at that time by the Committee. The
Committee shall have the discretion to reduce by an amount up to 20% the amount that
would otherwise be paid under the payout formula to a Strategic Performance
Participant based on the Committee’s evaluation of the individual’s achievement of
the SPM Performance Goal.
	 
	 	e.  	Section 162(m) Maximum. With respect to any Plan Participant who is or may
become a person referred to in Section 162(m), the maximum dollar amount that may be
paid under an Annual Performance Award shall be set at the time the Committee grants
the award and establishes Performance Goals under the award, and the Committee shall
have the discretion to decrease an award payment, but may not under any circumstances
increase such amount. Notwithstanding any other provision of this Plan, the maximum
dollar amount a Plan Participant may be paid under an Annual Performance Award, with
respect to any fiscal year is $2,000,000 1,500,000. The Committee may, in its
discretion, decrease this maximum, but may not, under any circumstances, increase
this maximum.

	4.  	Performance Goals.

	 	a.  	Establishment. An award payment under an Annual Performance Award shall be
made to a Plan Participant only if the Company, a division and/or the individual
participant achieves Performance Goals established by the Committee in writing not
later than 90 days after the commencement of the fiscal year to which the Performance
Goal relates, provided that the outcome is substantially uncertain at the time the
Committee establishes the Performance Goal; and provided further that in no event
will a Performance Goal be considered to be pre-established if it is established
after 25% of the period of service (as scheduled in good faith at the time the
Performance Goal is established) has elapsed.
	 
	 	b.  	Performance Goal Criteria. Performance Goals to be established under
paragraph 4.a. shall be based on revenue, revenue growth, cost of goods sold,
earnings per share (EPS), earnings growth, return on average net assets (ROANA),
return on average total assets, return on average current assets, return on equity,
average net asset dollar level, average current asset turns, average net asset turns,
average inventory asset turns, division profit adjustment, division controllable
profit contribution, division average asset dollars, economic value added,
controllable value added, product innovation, asset management, customer satisfaction
scores, customer care and fill rate. Supplemental Division Performance Goals for
division participants that may be established under paragraph 4.a. may be based on
any of the foregoing and/or on division specific operating performance goals
including sustained earnings, product warranty experience, product recalls or

 

 

	 	   	inventory levels. SPM Performance Goals that may be established under paragraph 4.a.
may be based on quantitative or qualitative factors, and may include, but are not
limited to, aggressive revenue growth, sustained earnings initiative, warranty
experience, product recalls, field inventory, acquisition experience, customer
satisfaction (determined by such measurements as product innovation, asset management,
product quality, warranty, on-time delivery, after-market service, customer care or
customer satisfaction scores or survey results), inventory reduction and inventory
turnover or any of the other Performance Goals listed in this paragraph. Each
Performance Goal is to be specifically defined by the Committee on a Company, division
or individual basis and/or in comparison with peer group performance.

	5.  	Payments. Before any payment is made under the Plan, the Committee must certify in writing,
as reflected in the minutes, that the Performance Goals established with respect to an Annual
Performance Award have been achieved. To the extent necessary with respect to any fiscal year,
in order to avoid any undue windfall or hardship due to external causes, the Committee may
make the determination as to whether a Performance Goal has been achieved without regard to
the effect on the Performance Goal measure, as it may otherwise be presented in the financial
statements, of any change in accounting standards, any acquisition by the Company not planned
for at the time the Performance Goals are established or any Board-approved extraordinary or
non-recurring event or item.

	6.  	Administration. The Committee shall have the authority to administer the Plan; establish
policies under the Plan; amend the Plan, subject to the provisions of paragraph 8; interpret
provisions of the Plan; select Plan Participants; establish Performance Goals; make Annual
Performance Awards; or terminate the Plan, in its sole discretion. The Committee may delegate
certain of these activities and all decisions not required to be exercised by it under Section
162(m) or Section 16 of the Exchange Act, as it solely determines. All decisions of the
Committee shall be final and binding upon all parties including the Company, its stockholders
and Plan Participants.

	7.  	Governing Law. The Plan, awards granted under the Plan and agreements entered into under the
Plan shall be construed, administered and governed in all respects under and by the applicable
laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that
might otherwise refer construction or interpretation of the Plan or an award or agreement to
the substantive law of another jurisdiction.

	8.  	Plan Amendment and Termination. The Committee may, in its sole discretion, amend, suspend or
terminate the Plan at any time, with or without advance notice to Plan Participants, provided
that no amendment to the Plan shall be effective that would increase the maximum amount
payable under paragraph 3.e. to a Plan Participant who is a person referred to in Section
162(m); that would change the Performance Goal criteria applicable to a Plan Participant who
is a person referred to in Section 162(m) for payment of awards stated under paragraph 4; or
that would modify the requirements as to eligibility for participation under paragraph 2,
unless the stockholders of the Company shall have approved such change in accordance with the
requirements of Section 162(m). No amendment, modification or termination of the Plan may
adversely affect in a material manner any right of any Plan Participant with respect to any
Annual Performance Award theretofore granted without such participant’s written consent.

	9.  	Effective Date of the Plan and Amendments. The Plan first became effective on November 1,
1995. Any amendment to the Plan shall be effective on the date established by the Committee,
subject to stockholder approval, if required under the provisions of paragraph 8.exv10w03

 

EXHIBIT 10.03

INTUIT INC.

1996 EMPLOYEE STOCK PURCHASE PLAN

As Amended Through January 25, 2005

     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.

     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;

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 was
approved by the Company’s stockholders at the Company’s October 30,
2003 Annual Meeting.

 

 

Intuit Inc.

1996 Employee Stock Purchase Plan

               (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 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.

-2-

 

Intuit Inc.

1996 Employee Stock Purchase 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) Effective with the Offering Period commencing June 16, 2005, Offering Periods shall be of
three (3) months duration commencing on each June 16, September 16, December 16 and March 16 and
ending on the following September 15, December 15, March 15 and June 15, respectively.

          (e) 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
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.

-3-

 

Intuit Inc.

1996 Employee Stock Purchase Plan

     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.

          (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.

-4-

 

Intuit Inc.

1996 Employee Stock Purchase 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.

          (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

-5-

 

Intuit Inc.

1996 Employee Stock Purchase Plan

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.

          (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) For Offering Periods that commenced prior to June 15, 2005, 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
automatically be enrolled in the subsequent Offering Period in accordance with this Section 11(c).

-6-

 

Intuit Inc.

1996 Employee Stock Purchase Plan

     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 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

-7-

 

Intuit Inc.

1996 Employee Stock Purchase Plan

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.

     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

-8-

 

Intuit Inc.

1996 Employee Stock Purchase Plan

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 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

-9-

 

Intuit Inc.

1996 Employee Stock Purchase Plan

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.

     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.

-10-

 

Intuit Inc.

1996 Employee Stock Purchase Plan

	 	(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 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
purchased.
	 
	 	(h)  	“Offering Date” is the first business day of each Offering
Period.
	 
	 	(i)  	“Offering Period” means, for the Offering Period commencing
June 15, 2005 and thereafter, a three-month period containing a single
three-month Accrual Period. Effective with the Offering Period commencing June
15, 2001, and through the Offering Period commencing June 16, 2002, Offering
Period means 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,

-11-

 

Intuit Inc.

1996 Employee Stock Purchase Plan

	 	(l)  	“Plan” means this Intuit Inc. 1996 Employee Stock Purchase
Plan, as amended from time to time.
	 
	 	(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.

-12-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]