EXHIBIT 10.15
Published on September 26, 2005
Exhibit 10.15
INTUIT INC.
EMPLOYEE STOCK PURCHASE PLAN
As Amended and Restated On July 27, 2005
1. Establishment of Plan. The Company proposes to grant options for purchase of the
Companys Common Stock, $0.01 par value, to eligible employees of the Company and Participating
Subsidiaries pursuant to this Plan. A total of 5,400,000 shares of the Companys 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) 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
Intuit Inc.
Employee Stock Purchase Plan
Employee Stock Purchase Plan
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) 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) 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. Notwithstanding the foregoing and subject to Section 11(c) below,
the Offering Period that commenced on March 16, 2005 shall be of twelve months duration and consist
of four three-month Accrual Periods.
(b) 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 employees
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 Companys Common
Stock on the Offering Date (but in no event less than the par value of a share of the Companys
Common Stock), or (ii) eighty-five percent (85%) of the Fair Market Value of a share of
the Companys Common Stock on the Purchase Date (but in no event less than the par value of a share
of the Companys Common Stock); provided, however, that the number of shares of the Companys
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
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respect to the applicable Accrual Period. The fair market value of a share of the Companys 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 Companys
Common Stock be below the par value per share of the Companys 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. The deductions are made as a percentage of the Participants 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 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 Companys administrative procedures for the Plan.
(c) Solely
with respect to the twelve-month Offering Period that commenced on March 16, 2005,
a Participant may lower or increase the rate of payroll deductions to be effective with the next
Accrual Period to occur in that Offering Period 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.
(d) 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.
(e) 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 Participants
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.
Any cash remaining in a Participants account after such purchase of shares because the amount is
insufficient to
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purchase a whole share shall be returned to the Participant, without interest. Any
cash remaining in a Participants 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 whose participation in
this Plan has terminated prior to such Purchase Date.
(f) As promptly as practicable after the Purchase Date, the Company shall deliver shares
representing the shares purchased.
(g) During a Participants lifetime, such Participants 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. The
Company may require shares to be issued to an account established by a broker dealer approved by
the Company.
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 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(e) below. 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.
(c) 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 Participants
option to each Participant affected thereby.
(d) Any payroll deductions accumulated in a Participants 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.
(e) Solely with respect to the twelve-month Offering Period that commenced on March 16, 2005,
no more than twice the number of shares that the Participant could have purchased at the
price on the Offering Date may be purchased by a Participant on any single Purchase Date within
that Offering Period.
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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) Solely with respect to the twelve-month Offering Period that commenced on March 16, 2005,
if the Fair Market Value on the Offering Date is higher than the Fair Market Value on the first day
of any subsequent Offering Period, the March 16, 2005 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 Participants
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).
12. Termination of Employment.
(a) Termination of a Participants 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 Participants 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.
(b) 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 Participants 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 Participants 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
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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 Participants 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
Participants 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 Participants 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 Participants account after the shares are
purchased.
17. Notice of Disposition. In order that the Company may properly report the compensation
attributable to a Participants disposition of shares purchased under this Plan, the Company may
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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. 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
Companys 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 employees
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) July
27, 2015.
22. Death of a Participant.
(a) In the event of a Participants death, payroll deductions in his or her account shall be
refunded to the Participants legal representative in accordance with the Companys then current
Payroll Departments procedures for payment of a deceased employees wages. Any shares purchased
under the Plan on behalf of a Participant are to be treated in accordance with the Participants
will or the laws of descent and distribution.
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.
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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
Committees 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 Companys 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) | Accrual Period means the three-month period coinciding with the Offering Period during which payroll deductions are accumulated, with the exception of the twelve-month Offering Period that commenced on March 16, 2005 which, subject to Section 11(c), is comprised of four three-month Accrual Periods. | ||
(b) | Board means the Board of Directors of the Company. | ||
(c) | Code means the Internal Revenue Code of 1986, as amended. | ||
(d) | Committee means the Compensation and Organizational Development Committee appointed by the Board. The Committee is comprised of at least two (2) members of the Board, all of whom are Outside Directors. | ||
(e) | Company means Intuit Inc., a Delaware corporation. | ||
(f) | Fair Market Value means as of any date, the value of a share of the Companys 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
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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.
(g) | Maximum Share Amount means the maximum number of shares which may be purchased by any employee at any single Purchase Date. | ||
(h) | 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. | ||
(i) | Offering Date is the first business day of each Offering Period. | ||
(j) | Offering Period means a three-month period containing a single three-month Accrual Period. Notwithstanding the foregoing, and subject to Section 11(c) above, the Offering Period that commenced on March 16, 2005 shall be a twelve-month period containing four three-month Accrual Periods. | ||
(k) | Outside Directors means outside directors within the meaning of Code Section 162(m). | ||
(l) | Participating Subsidiaries means Subsidiaries that have been designated by the Committee from time to time as eligible to participate in this Plan. | ||
(m) | Plan means this Intuit Inc. Employee Stock Purchase Plan, as amended from time to time. | ||
(n) | 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). | ||
(o) | 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. | ||
(p) | Purchase Date is the last business day of each Accrual Period. | ||
(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. |
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