INTUIT INC
EXHIBIT 10.07
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<TYPE>EX-10.07
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<DESCRIPTION>EXHIBIT 10.07
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<P align="right"><FONT size="2">EXHIBIT 10.07
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<P align="center"><FONT size="2">INTUIT INC.<BR>
PERFORMANCE INCENTIVE PLAN<BR>
Effective August&nbsp;1, 2002
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        <TD width="1%" align="left" nowrap><FONT size="2"><B>1.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Overview: </B>Intuit&#146;s Performance Incentive Plan (IPI)&nbsp;is Intuit&#146;s
cash bonus incentive program for salaried employees other than sales
who are not eligible for overtime pay in the U.S. or its equivalent.
It replaces the Incentive Plan for Leaders (IPL)&nbsp;for those employees
eligible for the IPL during Intuit&#146;s fiscal year ending July&nbsp;31, 2002
and the Performance Sharing Plan for other salaried employees. The IPI
is a program under which Intuit pays discretionary cash bonus awards to
select employees. Bonus awards under the IPI are paid annually. The
amount of a bonus award is based upon the employee&#146;s bonus target and
performance during the fiscal year and the bonus pool made available
for payments under the IPI for the applicable fiscal year.</FONT></TD>
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        <TD><FONT size="2">&nbsp;</FONT></TD>
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        <TD width="1%" align="left" nowrap><FONT size="2"><B>2.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Purposes</B>: The IPI is a component of Intuit&#146;s overall strategy to
pay its employees for performance. The purposes of IPI are to: (a)
motivate salaried employees by tying compensation to performance; (b)
reward exceptional performance that supports overall Intuit objectives;
and (c)&nbsp;attract and retain top performing employees.</FONT></TD>
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        <TD><FONT size="2">&nbsp;</FONT></TD>
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        <TD width="1%" align="left" nowrap><FONT size="2"><B>3.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Effective Date</B>: The IPI is effective with Intuit&#146;s 2003 fiscal
year that begins August&nbsp;1, 2002.</FONT></TD>
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        <TD><FONT size="2">&nbsp;</FONT></TD>
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        <TD width="1%" align="left" nowrap><FONT size="2"><B>4.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Eligibility</B>: Employees who are not eligible for overtime pay in
the U.S. or its equivalent in other countries are eligible to
participate in the IPI, except for those salaried employees who are in
sales positions that are covered by local sales incentive or
commissions plans. Those salaried sales employees are not eligible to
participate in the IPI. Those employees who are determined to be
eligible for bonus awards under the IPI are called &#147;Participants.&#148;
Participants in the IPI are not eligible to simultaneously participate
in Intuit&#146;s Performance Sharing Plan. Participants in the IPI are not
eligible to simultaneously participate in any other bonus or cash
incentive plan, unless the Director of Total Rewards otherwise
specifically approves such participation in writing. An employee must
be hired or otherwise become eligible to participate in the IPI no
later than April 1 to be eligible for a bonus award under the IPI for
that fiscal year. Being a Participant does not entitle the individual
to receive a bonus award. Bonus awards are based on individual
performance and Intuit&#146;s performance and are payable to Participants
that meet the criteria set forth in Paragraph&nbsp;6 below.</FONT></TD>
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        <TD><FONT size="2">&nbsp;</FONT></TD>
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        <TD width="1%" align="left" nowrap><FONT size="2"><B>5.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Plan Year</B>: The IPI operates on a fiscal year basis, August 1
through July&nbsp;31.</FONT></TD>
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        <TD width="1%" align="left" nowrap><FONT size="2"><B>6.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Bonus Awards</B>: Bonus awards are discretionary payments. A
Participant must be an active employee in good standing and on Intuit&#146;s
or an approved subsidiary&#146;s payroll on the day the bonus award is paid
to receive any portion of the bonus payment. A Participant who is not
actively employed or on an approved payroll for whatever reason on the
date a bonus award is paid is not entitled to a partial or pro rata
bonus award. Intuit may make exceptions in its sole discretion. There
is no minimum award or guaranteed payment. Bonus awards are paid based
on the fiscal year. A bonus award is calculated with reference to the
Participant&#146;s bonus target and performance for the fiscal year and the
bonus pool made available for bonus awards under the IPI for the fiscal
year.</FONT></TD>
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        <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>a.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="91%"><FONT size="2"><B>Bonus Targets</B>: Bonus targets are established as a
percentage of a Participant&#146;s base salary.</FONT></TD>
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        <TD width="3%">&nbsp;</TD>
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        <TD width="96%">&nbsp;</TD>
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        <TD valign="top"><FONT size="2">i.</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
When an employee becomes a
Participant he or she is advised of his or her bonus
target for the fiscal year.</FONT></TD>
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        <TD valign="top"><FONT size="2">ii.</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Following the beginning of each
fiscal year, each Participant is advised of his or her
bonus target by the executive leader of the
Participant&#146;s business or functional unit or the
executive leader&#146;s designee.</FONT></TD>
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        <TD valign="top"><FONT size="2">iii.</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
The Compensation Committee
establishes individual bonus targets for Executive
Officers (as defined in the Charter of the Compensation
Committee of the Board of Directors) and other Intuit
officers. Bonus targets for other employees are
established by the Director of Total Rewards in
consultation with Intuit&#146;s President and Chief Executive
Officer, the employee&#146;s manager and the individual
responsible for the business unit or division thereof or
functional unit or division thereof in which the
employee works and that unit or division&#146;s HR director.</FONT></TD>
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        <TD valign="top"><FONT size="2">iv.</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Intuit may establish bonus target
guidelines for each fiscal year. A Participant&#146;s bonus
target for a fiscal year may be based upon a variety of
factors, including but not limited to, his or her
salary, position or level. A bonus target does not
guarantee that a bonus award will be made at that rate.</FONT></TD>
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        <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>b.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="91%"><FONT size="2"><B>Determination of a Bonus Award Amount</B></FONT></TD>
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        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="96%">&nbsp;</TD>
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        <TD valign="top"><FONT size="2">i.</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
The amount of a bonus award to a
Participant who is an Executive Officer (as defined in
the Charter of the Compensation Committee of the Board
of Directors) or other Intuit officer is determined by
the Compensation Committee. The amount of a bonus award
to a Participant who is not an officer is determined by
the executive</FONT></TD>
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leader of the Participant&#146;s business or functional unit and
Intuit&#146;s President and Chief Executive Officer in
consultation with the Participant&#146;s direct manager and the
Director of Total Rewards.</FONT></TD>
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        <TD valign="top"><FONT size="2">ii.</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
A Participant&#146;s bonus award is linked
to an assessment of the Participant&#146;s total job
performance for the fiscal year. Factors that may be
considered, include but are not limited to, what the
Participant does to advance Intuit&#146;s success and how the
Participant does it, especially leadership, balance of
short-term actions with long-term goals, resource
allocation and maintenance by the Participant of focus
on Intuit while prioritizing the needs of customers,
employees and stockholders.</FONT></TD>
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        <TD valign="top"><FONT size="2">iii.</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
There is neither a minimum nor
maximum amount of a bonus award that may be paid to a
Participant for a fiscal year. At Intuit&#146;s discretion,
a bonus award amount may be prorated for those
Participants who are eligible to participate in the IPI
for less than a full fiscal year.</FONT></TD>
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<TR valign="top">
        <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>c.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="91%"><FONT size="2"><B>When Bonus Awards are Paid</B>: The timing for payment
of a bonus award is determined by Intuit&#146;s Director of Total
Rewards in consultation with Intuit&#146;s President and Chief
Executive Officer and other senior management. A Participant
has no right to a bonus award until it is paid. Notwithstanding
the foregoing, in the event of an administrative error in the
calculation or payment of a bonus award to a Participant, Intuit
reserves the right to seek recovery from a Participant of an
erroneously paid excessive bonus amount.</FONT></TD>
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<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>7.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Unfunded</B>: The IPI is not funded. Bonus awards, if any, are made
from the general assets of Intuit. Intuit determines in its sole
discretion the amount of funds it would like to make available for
bonus awards based on Intuit&#146;s performance for the fiscal year.
Intuit&#146;s performance for this purpose may be measured in a number of
ways, including but not limited to: financial measures, such as revenue
and operating income; qualitative measures, such as accomplishments to
position Intuit for the future; the year&#146;s market conditions;
stockholder returns and progress of Intuit&#146;s business model. Intuit is
not be bound to pay any part of such funds in bonus awards.</FONT></TD>
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        <TD><FONT size="2">&nbsp;</FONT></TD>
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        <TD width="1%" align="left" nowrap><FONT size="2"><B>8.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Amendment</B>: Intuit reserves the right to terminate, change, modify
or amend the provisions of the Plan at any time. The President and
Chief Executive Officer or the Chief Financial Officer and the Senior
Vice President, Human Resources have the authority to make amendments
to the Plan that do not significantly increase the cost of the Plan
which in their determination (i)&nbsp;clarify the terms of the Plan; (ii)
assist in the administration of the Plan; or (iii)&nbsp;are necessary or
advisable for the Plan comply with applicable law.</FONT></TD>
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
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        <TD width="1%" align="left" nowrap><FONT size="2"><B>9.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Administration and Discretion</B>: Intuit through its Compensation
Committee or President and Chief Executive Officer and the Director of
Total Rewards has the sole discretion to: (a)&nbsp;adopt such rules,
regulations, agreements and instruments as it deems necessary to
administer the IPI; (b)&nbsp;interpret the terms of the IPI; (c)&nbsp;determine
an employee&#146;s eligibility under the IPI; (d)&nbsp;determine whether a
Participant is to receive a bonus award under the IPI; (e)&nbsp;determine
the amount of any bonus award to a Participant; (f)&nbsp;determine when a
bonus award is to be paid to a Participant and whether any such bonus
award should be prorated based on the Participant&#146;s service or other
factors; (g)&nbsp;determine whether a bonus award will be made in
replacement of or as an alternative to any other incentive or
compensation plan of Intuit or acquired business unit or corporation;
(h)&nbsp;grant waivers of IPI standard procedures and policies; (i)&nbsp;correct
any defect, supply any omission, or reconcile any inconsistency in the
IPI, any bonus award or any notice to Participants or a Participant
regarding bonus awards; and (j)&nbsp;take any and all other actions it deems
necessary or advisable for the proper administration of the IPI.</FONT></TD>
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        <TD><FONT size="2">&nbsp;</FONT></TD>
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        <TD width="1%" align="left" nowrap><FONT size="2"><B>10.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Participation Provides No Guarantee of Employment</B>: Employment at
Intuit and its subsidiaries is at-will. Participation in the IPI in no
way constitutes an employment contract conferring either a right or
obligation of continued employment.</FONT></TD>
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        <TD><FONT size="2">&nbsp;</FONT></TD>
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        <TD width="1%" align="left" nowrap><FONT size="2"><B>11.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Governing Law: </B>The IPI will be governed by and construed in
accordance with the laws of the State of California.</FONT></TD>
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