EXHIBIT 10.01
Published on December 1, 2006
Exhibit 10.01
INTUIT INC.
MANAGEMENT STOCK PURCHASE PROGRAM
1. ESTABLISHMENT OF PROGRAM; PURPOSE. The Intuit Inc. Management Stock Purchase Program (the
MSPP) was adopted by the Compensation and Organizational Development Committee of the Board on
October 24, 2006. The MSPP is intended to provide encouragement and assistance to certain key
employees of the Company in meeting the Companys stock ownership guidelines by providing for the
opportunity to purchase and receive awards of Restricted Stock Units under Sections 6 and 9 of the
Intuit Inc. 2005 Equity Incentive Plan (the Plan). The MSPP is intended to be a part of the
Plan. All capitalized terms in the MSPP that are not defined herein shall have the meanings given
to them in the Plan. The MSPP is not meant to interpret, extend, or change the Plan in any way, or
to represent the full terms of the Plan. If there is any discrepancy, conflict or omission between
the MSPP and the provisions of the Plan, the provisions of the Plan shall apply.
2. TAX COMPLIANCE. The MSPP is intended to comply with Section 409A of the Code and any
regulatory or other guidance issued under such section. At the time the Company adopted the MSPP,
the Department of Treasury had not yet issued final regulations under Section 409A of the Code. It
is the Companys intention that any terms of the MSPP (and any Restricted Stock Units issued
pursuant to the MSPP) that conflict with such final regulations or other future guidance shall be
null and void and that any terms that are missing from the MSPP which such regulations and/or other
guidance would require the MSPP to contain in order to comply with the requirements of Section 409A
of the Code shall be incorporated into the MSPP. To that end, once the final regulations under
Section 409A are issued, the Committee shall be entitled to amend and otherwise conform on a
unilateral basis, the MSPP (and any Restricted Stock Units issued pursuant to the MSPP) to the
requirements of Section 409A of the Code and the regulations and other interpretive authority
promulgated thereunder.
3. ELIGIBILITY AND PARTICIPATION.
3.1 Eligibility. An employee of the Company shall be eligible to participate in the MSPP if
the employee is a member of a select group of management or highly compensated employees within the
meaning of the Employee Retirement Income Security Act of 1974, as amended (ERISA) and is named
by the Committee or the Companys Chief Executive Officer to be a participant in the MSPP (each
such employee who elects to defer bonus compensation pursuant to the MSPP is referred to herein a
Participant); provided however, that the Companys Chief Executive Officer shall not be permitted
to participate in the MSPP. To be considered for participation in a year, the Participant must
have projected annualized base salary and target incentive compensation equal to at least $145,000
and be employed in the U.S., at a position at the director level or above. Notwithstanding the
foregoing, an employee who has participated in the MSPP as a director whose position has been
reduced to below that of director may be eligible to participate in the MSPP for the year in which
such reduction occurs provided he continues to have projected base salary and target incentive
compensation equal to at least $145,000.
3.2 Participation. An eligible employee may elect to participate in the MSPP with respect to
any calendar year by submitting a participation agreement (in the form determined by the Company (a
Participation Agreement) to the Company, prior to the date established by the Company, in the
immediately preceding calendar year.
3.3 Partial Year Participation. In the event that an employee first becomes eligible to
participate during a calendar year, a Participation Agreement must be submitted to the Company no
later than thirty (30) days following the employee first becoming eligible to participate in the
MSPP. Such Participation Agreement shall be effective only with regard to bonus compensation for
services to be performed subsequent to the receipt of the Participation Agreement by the Company.
4. RESTRICTED STOCK UNIT AWARDS
4.1 Bonus Deferral Commitment. A Participant may elect defer from 5% to 15% of his or her
annual bonus compensation (in increments of 1%), whether paid under the Companys Performance
Incentive Plan or Senior Executive Incentive Plan (collectively, Bonus Compensation), in the
Participation Agreement (any amount
so elected to be deferred pursuant to the MSPP is referred to
herein as a Bonus Deferral Commitment). Deferrals of Bonus Compensation under the MSPP are
intended to conform to the requirements of Section 409A of the Code. The amount to be deferred
shall be stated as a percentage of any Bonus Compensation payable during the calendar year with
respect to which the deferral applies (the Deferral Period) from any Bonus Compensation payable
during the Deferral Period, or in such other form as allowed by the Committee consistent with the
requirements of Section 409A of the Code. Each Bonus Deferral Commitment shall be obtained by a
Participant in a time and manner that complies with Section 409A of the Code and any regulatory or
other guidance issued thereunder.
4.2 Awards of Restricted Stock Units.
(a) | Purchased Restricted Stock Units. On the date that amounts subject to a Bonus Deferral Commitment hereunder would otherwise become payable (the Purchase Date), the Company shall withhold such payment and instead award to the Participant on the Purchase Date pursuant to Sections 6 and 9 of the Plan Restricted Stock Units (Purchased RSUs) covering a number of Shares having an aggregate Fair Market Value on the Purchase Date equal to the amount of the Bonus Compensation elected to be deferred (rounded down to the nearest whole Share). | ||
(b) | Matching Restricted Stock Units. In addition to the Purchased RSUs and subject to the limitations set forth in Section 4.3(c) of this MSPP, on the Purchase Date, the Company shall also award to the Participant pursuant to the Plan Restricted Stock Units (Matching RSUs) covering a number of Shares equal to the number of Shares subject to the Purchased RSUs awarded to the Participant on the Purchase Date pursuant to Section 4.2(a) of this MSPP. | ||
(c) | Vesting. Unless otherwise provided for in the terms of an Award Agreement, all Purchased RSUs shall be fully vested as of the applicable Purchase Date. Matching RSUs shall vest as described in the applicable Award Agreement. All other terms and conditions of the Purchased RSUs and the Matching RSUs shall be set forth either in an applicable Award Agreement or in the Plan. | ||
(d) | Employment Required. Notwithstanding anything herein to the contrary, a Participant must be employed by the Company on the Purchase Date in order to receive an award of Restricted Stock Units under the MSPP. |
4.3 Limitations on Bonus Deferral Commitments and Restricted Stock Unit Awards. The following
limitations shall apply to Bonus Deferral Commitments:
(a) | Minimum and Maximum Deferral. The maximum deferral amount for a Bonus Deferral Commitment must be between five percent (5%) and fifteen percent (15%) of any such Bonus Compensation to be paid or payable during the Deferral Period. | ||
(b) | Maximum Match. In addition to the limit set forth in Section 4.3(b) above, the maximum number of Shares that may be subject to Matching RSUs that may be issued to a Participant in respect of Purchased RSUs purchased in any one calendar year shall be as follows: |
(1) | if the Participant is employed on the Purchase Date at the Director level, 300 Shares; | ||
(2) | if the Participant is employed on the Purchase Date at the Vice President level, 750 Shares; and | ||
(3) | if the Participant is employed on the Purchase Date at the Senior Vice President level or above, 1,500 Shares. |
(c) | Changes in Limits. The Committee may amend the MSPP to change the maximum limits set forth in this Section 4.3 (or implement new minimum or maximum limits) from time to time by giving written notice to all Participants. No such change may affect a Bonus Deferral Commitment made prior to the Committees action unless otherwise required by law. |
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4.4 Modification of Bonus Deferral Commitment. A Bonus Deferral Commitment shall be
irrevocable except that the Committee shall permit a Participant to reduce the amount to be
deferred, or waive the remainder of the Bonus Deferral Commitment upon a finding that the
Participant has suffered an Unforeseeable Emergency (as defined under the Companys Executive
Deferred Compensation Plan, as amended from time to time). If the Committee grants the
application, the Participant will not be allowed to enter into a new Bonus Deferral Commitment for
the remainder of the Deferral Period in which the reduction or waiver of the Bonus Deferral
Commitment occurs and the following Deferral Period. Any resumption of the Participants deferrals
under this Plan shall be made only at the election of the Participant in accordance with this
Section 4.
5. RIGHTS OF PARTICIPANTS.
5.1 Contractual Obligation. The MSPP shall create an unfunded, unsecured contractual
obligation on the part of the Company to make payments due under Restricted Stock Units.
5.2 Unsecured Interest. No Participant or party claiming an interest in benefits of a
Participant hereunder shall have any interest whatsoever in any specific asset of the Company. To
the extent that any party acquires a right to receive payments under the MSPP, such right shall be
equivalent to that of an unsecured general creditor of the Company. Each Participant, by
participating hereunder, agrees to waive any priority creditor status with respect to any amounts
due hereunder. The Company shall have no duty to set aside or invest any amounts credited to
Restricted Stock Unit awards under the MSPP.
6. AMENDMENTS AND TERMINATION. The Company reserves the right to amend, modify, or terminate
the MSPP (in whole or in part) at any time by action of the Board or the Committee, with or without
prior notice. Except as described below in this Section 6, no such amendment or termination shall
in any material manner adversely affect any Participants rights to any amounts already deferred or
credited hereunder or deemed earnings thereon, up to the point of amendment or termination, without
the consent of the Participant. Subject to the above provisions, the Board shall have broad
authority to amend the MSPP to take into account changes in applicable law, including but not
limited to securities and tax laws and accounting rules.
7. CLAIMS PROCEDURE.
7.1 Claim. The Committee shall establish rules and procedures to be followed by Participants
and their beneficiaries in (a) filing claims for benefits, and (b) for furnishing and verifying
proof necessary to establish the right to benefits in accordance with the MSPP, consistent with the
remainder of this Section 7. Such rules and procedures shall require that claims and proof be made
in writing and directed to the Committee.
7.2 Review of Claim. The Committee or its designee shall review all claims for benefits. Upon
receipt by the Committee of such a claim, it shall determine all facts which are necessary to
establish the right of the claimant to benefits under the provisions of the MSPP and the amount
thereof as herein provided within ninety (90) days of receipt of such claim. If prior to the
expiration of the initial ninety (90) day period, the Committee determines additional time is
needed to come to a determination on the claim, the Committee shall provide written notice to the
Participant, Beneficiary or other claimant of the need for the extension, not to exceed a total of
one hundred eighty (180) days from the date the application was received.
7.3 Notice of Denial of Claim. In the event that any Participant, beneficiary or other
claimant claims to be entitled to a benefit under the MSPP, and the Committee determines that such
claim should be denied, in whole or in part, the Committee shall, in writing, notify such claimant
that the claim has been denied, in whole or in part, setting forth the specific reasons for such
denial. Such notification shall be written in a manner reasonably expected to be understood by such
claimant, shall refer to the specific sections of the MSPP relied on, shall describe any additional
material or information necessary for the claimant to perfect the claim, shall provide an
explanation of why such
material or information is necessary, and, where appropriate, shall include an explanation of
how the claimant can obtain reconsideration of such denial.
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7.4 Reconsideration of Denied Claim.
(a) | Within sixty (60) days after receipt of the notice of the denial of a claim, such claimant or duly authorized representative may request, by mailing or delivery of such written notice to the Committee, a reconsideration by the Committee of the decision denying the claim. If the claimant or duly authorized representative fails to request such a reconsideration within such sixty (60) day period, it shall be conclusively determined for all purposes of the MSPP that the denial of such claim by the Committee is correct. If such claimant or duly authorized representative requests a reconsideration within such sixty (60) day period, the claimant or duly authorized representative shall have thirty (30) days after filing a request for reconsideration to submit additional written material in support of the claim, review pertinent documents, and submit issues and comments in writing. | ||
(b) | After such reconsideration request, the Committee shall determine within sixty (60) days of receipt of the claimants request for reconsideration whether such denial of the claim was correct and shall notify such claimant in writing of its determination. The written notice of the Committees decision shall be in writing and shall include specific reasons for the decision, shall be written in a manner reasonably calculated to be understood by the claimant, and shall identify specific references to the pertinent Plan provisions on which the decision is based. In the event of special circumstances determined by the Committee, the time for the Committee to make a decision may be extended by an additional sixty (60) days upon written notice to the claimant prior to the commencement of the extension. |
7.5 Employer to Supply Information. To enable the Committee to perform its duties, the Company
shall supply full and timely information to the Committee of all matters relating to the
retirement, Disability, death, or other cause for termination of employment of all Participants,
and such other pertinent facts as the Committee may require.
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