Exhibit 10.66

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CREDIT AGREEMENT

among

ADOBE SYSTEMS INCORPORATED

and

LENDERS NAMED HEREIN

and

ABN AMRO BANK N.V.,
as Administrative Agent for Lenders

(364-Day Revolving Credit/Term Loan Facility)

August 9, 2000

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TABLE OF CONTENTS

Page SECTION I.         INTERPRETATION 1      1.01.   Definitions 1      1.02.  
GAAP 18      1.03.   Headings 18      1.04.   Plural Terms 18      1.05.   Time
19      1.06.   Governing Law 19      1.07.   Construction 19      1.08.  
Entire Agreement 19      1.09.   Calculation of Interest and Fees 19      1.10.
  References. 19      1.11.   Other Interpretive Provisions 20   SECTION II.  
      CREDIT FACILITIES 20      2.01.   Revolving Loans 20      2.02.  
Extension of Revolving Loan Maturity Date 21      2.03.   Term Loans 23  
   2.04.   Interest 24      2.05.   Purpose 26      2.06.   Increases in Total
Commitment, Commitment Reductions, Etc 27      2.07.   Fees 29      2.08.  
Prepayments 29      2.09.   Other Payment Terms 30      2.10.   Loan Accounts;
Notes 31      2.11.   Loan Funding 32      2.12.   Pro Rata Treatment 33  
   2.13.   Change of Circumstances 34      2.14.   Taxes on Payments 36  

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TABLE OF CONTENTS

(continued)

Page    2.15.   Funding Loss Indemnification 38      2.16.   Replacement of
Lenders 38   SECTION III.         CONDITIONS PRECEDENT 39      3.01.   Initial
Conditions Precedent 39      3.02.   Conditions Precedent to Term Loan Borrowing
39      3.03.   Conditions Precedent to Each Credit Event 39      3.04.  
Covenant to Deliver 40   SECTION IV.          REPRESENTATIONS AND WARRANTIES 40
     4.01.   Borrower’s Representations and Warranties 40      4.02.  
Reaffirmation 44   SECTION V.         COVENANTS 45      5.01.   Affirmative
Covenants 45      5.02.   Negative Covenants 48      5.03.   Financial Covenants
56   SECTION VI.          DEFAULT 56      6.01.   Events of Default 56  
   6.02.   Remedies 58   SECTION VII.          AGENTS AND RELATIONS AMONG
LENDERS 59      7.01.   Appointment, Powers and Immunities of Administrative
Agent 59      7.02.   Reliance by Administrative Agent 59      7.03.   Defaults
60      7.04.   Indemnification 60      7.05.   Non-Reliance 60      7.06.  
Resignation or Removal of Administrative Agent 61      7.07.   Administrative
Agent in its Individual Capacity 61   SECTION VIII.          MISCELLANEOUS 62  
   8.01.   Notices 62  

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TABLE OF CONTENTS

(continued)

Page 8.02.   Expenses 63   8.03. Indemnification 63 8.04.   Waivers; Amendments
64   8.05. Successors and Assigns 64 8.06.   Setoff 68   8.07.   No Third Party
Rights 68   8.08.   Partial Invalidity 68   8.09.   Jury Trial 68   8.10.  
Confidentiality 69   8.11.   Counterparts 70   SCHEDULES           I Lenders    
II Pricing Grid     3.01 Initial Conditions Precedent     4.01(q) Subsidiaries  
  5.02(a) Existing Indebtedness     5.02(b) Existing Liens     5.02(e) Existing
Investments             EXHIBITS             A Notice of Revolving Loan
Borrowing (2.01(b))     B Extension Request (2.02(a))     C Notice of Term Loan
Borrowing (2.03(b))     D Notice of Interest Period Selection (2.04(b))     E
Notice of Term Loan Conversion (2.04(c))     F New Lender Joinder (2.06(a))    
G Consent to Increase Commitment (2.06(a))     H Revolving Loan Note (2.10(b))  
  I Term Loan Note (2.10(c))     J Assignment Agreement (8.05(c))    

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An extra section break has been inserted above this paragraph. Do not delete
this section break if you plan to add text after the Table of
Contents/Authorities. Deleting this break will cause Table of
Contents/Authorities headers and footers to appear on any pages following the
Table of Contents/Authorities.

 

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CREDIT AGREEMENT

          THIS CREDIT AGREEMENT, dated as of August 9, 2000, is entered into by
and among:

          (1)  ADOBE SYSTEMS INCORPORATED, a Delaware corporation (“Borrower”);

          (2)  Each of the financial institutions from time to time listed in
Schedule I hereto, as amended from time to time (such financial institutions to
be referred to herein collectively as “Lenders”); and

          (3)  ABN AMRO BANK N.V., as agent for Lenders (in such capacity,
“Administrative Agent”).

RECITALS

A.  Borrower has requested Lenders to provide certain credit facilities to
Borrower.

B.  Lenders are willing to provide such credit facilities upon the terms and
subject to the conditions set forth herein.

AGREEMENT

          NOW, THEREFORE, in consideration of the above Recitals and the mutual
covenants herein contained, the parties hereto hereby agree as follows:

SECTION I.     INTERPRETATION.

          1.01.  Definitions. Unless otherwise indicated in this Agreement or
any other Credit Document, each term set forth below, when used in this
Agreement or any other Credit Document, shall have the respective meaning given
to that term below or in the provision of this Agreement or other document,
instrument or agreement referenced below.

          “ABN AMRO” shall mean ABN AMRO Bank N.V.

          “Administrative Agent” shall have the meaning given to that term in
clause (3) of the introductory paragraph hereof.

          “Administrative Agent’s Fee Letter” shall mean the letter agreement
dated as of August 9, 2000, between Borrower and Administrative Agent regarding
certain fees payable by Borrower to Administrative Agent.

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          “Adobe Incentive Partners” shall mean Adobe Incentive Partners, L.P.,
a California limited partnership, in which Borrower is the general partner and
all of the limited partners are Borrower or Affiliates of Borrower.

          “Adobe Incentive Partners Distributions” shall mean distributions of
cash or securities owned by Adobe Incentive Partners, repurchases of unvested
partnership interests in Adobe Incentive Partners, and issuances of partnership
interests in Adobe Incentive Partners.

          “Affiliate” shall mean, with respect to any Person, (a) each Person
that, directly or indirectly, owns or controls, whether beneficially or as a
trustee, guardian or other fiduciary, ten percent (10%) or more of any class of
Equity Securities of such Person, (b) each Person that controls, is controlled
by or is under common control with such Person or any Affiliate of such Person
or (c) each of such Person’s officers, directors, general partners and, if such
Person is a joint venture organized as a separate legal entity, joint venturers
having powers comparable to a general partner; provided, however, that in no
case shall any of the following Persons be deemed to be an Affiliate of Borrower
or any of its Subsidiaries for purposes of this Agreement: (i) Administrative
Agent or any Lender or (ii) the general partner of any VC Partnership which
would otherwise be deemed an Affiliate solely because it acts as general partner
and controls such VC Partnership. For the purpose of this definition, “control”
of a Person shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of its management or policies.

          “Agreement” shall mean this Credit Agreement.

          “Applicable Lending Office” shall mean, with respect to any Lender,
(a) in the case of its Base Rate Loans and Base Rate Portions, its Domestic
Lending Office, and (b) in the case of its LIBOR Loans and LIBOR Portions, its
Euro-Dollar Lending Office. “Applicable Margin” shall mean, with respect to any
Loan or Portion at any time, the per annum margin which is determined pursuant
to the Pricing Grid and added to the Base Rate or LIBO Rate, as the case may be,
for such Loan or Portion; provided, however, that each Applicable Margin
determined pursuant to the Pricing Grid shall be increased by two percent
(2.00%) per annum on the date an Event of Default occurs and shall continue at
such increased rate unless and until such Event of Default is waived or cured in
accordance with this Agreement. The Applicable Margins shall be determined as
provided in the Pricing Grid and may change for each Pricing Period.

          “Assignee Lender” shall have the meaning given to that term in
Subparagraph 8.05(c).

          “Assignment” shall have the meaning given to that term in Subparagraph
8.05(c).

          “Assignment Agreement” shall have the meaning given to that term in
Subparagraph 8.05(c).

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          “Assignment Effective Date” shall have, with respect to each
Assignment Agreement, the meaning set forth therein.

          “Assignor Lender” shall have the meaning given to that term in
Subparagraph 8.05(c).

          “Base Rate” shall mean, on any day, the greater of (a) the Prime Rate
in effect on such date and (b) the Federal Funds Rate for such day plus one-half
percent (0.50%).

          “Base Rate Loan” shall mean, at any time, a Revolving Loan which then
bears interest as provided in clause (i) of Subparagraph 2.04(a).

          “Base Rate Portion” shall mean, at any time, a Portion of the Term
Loan Borrowing or a Term Loan, as the case may be, which then bears interest as
provided in clause (i) of Subparagraph 2.04(a).

          “Borrower” shall have the meaning given to that term in clause (1) of
the introductory paragraph hereof.

          “Borrowing” shall mean a Revolving Loan Borrowing or the Term Loan
Borrowing.

          “Business Day” shall mean any day on which (a) commercial banks are
not authorized or required to close in San Francisco, California, New York, New
York or Chicago, Illinois, and (b) if such Business Day is related to a LIBOR
Loan or a LIBOR Portion, dealings in Dollar deposits are carried out in the
London interbank market.

          “Capital Adequacy Requirement” shall have the meaning given to that
term in Subparagraph 2.13(d).

          “Capital Asset” shall mean, with respect to any Person, any tangible
fixed or capital asset owned or leased (in the case of a Capital Lease) by such
Person, or any expense incurred by such Person that is required by GAAP to be
reported as a non-current asset on such Person’s balance sheet.

          “Capital Leases” shall mean any and all lease obligations that, in
accordance with GAAP, are required to be capitalized on the books of a lessee.

          “Change of Control” shall mean

          (a) With respect to Borrower, (i) the acquisition after the date
hereof by any person or group of persons (within the meaning of Section 13 or 14
of the Securities Exchange Act of 1934 (as amended, the “Exchange Act”)) of (A)
beneficial ownership (within the meaning of Rule 13d-3 promulgated by the
Securities and Exchange Commission under the Exchange Act) of fifty percent
(50%) or more of the outstanding Equity Securities of Borrower entitled to vote
for members of the board of directors, or (B) all or substantially all of the
assets of

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Borrower; or (ii) during any period of twelve (12) consecutive calendar months,
individuals who are directors of Borrower on the first day of such period
(“Initial Directors”) and any directors of Borrower who are specifically
approved by two-thirds of the Initial Directors and previously-approved
Directors shall cease to constitute a majority of the Board of Directors of
Borrower before the end of such period; or

          (b) With respect to any Material Subsidiary, Borrower shall cease to
own, directly or indirectly, one hundred percent (100%) of the Equity Securities
of such Subsidiary except for nominal amounts of stock necessary to do business
in certain jurisdictions outside the United States.

          “Change of Law” shall have the meaning given to that term in
Subparagraph 2.13(b).

          “Commitment Effective Date” shall have the meaning given to that term
in Subparagraph 2.06(a).

          “Commitment Fee Percentage” shall mean, at any time, the per annum
percentage which is used to calculate Commitment Fees. The Commitment Fee
Percentages shall be determined as provided in the Pricing Grid and may change
for each Pricing Period.

          “Commitment Fees” shall have the meaning given to that term in
Subparagraph 2.07(b).

          “Commitment” shall mean, with respect to each Lender, the Dollar
amount set forth under the caption “Commitment” opposite such Lender’s name on
Part A of Schedule I, or, if changed, such Dollar amount as may be set forth for
such Lender in the Register.

          “Compliance Certificate” shall have the meaning given to that term in
Subparagraph 5.01(a).

          “Consent to Increase Commitment” shall have the meaning given to that
term in Subparagraph 2.06(a).

          “Contingent Obligation” shall mean, with respect to any Person, (a)
any Guaranty Obligation of that Person; and (b) any direct or indirect
obligation or liability, contingent or otherwise, of that Person (i) in respect
of any Surety Instrument issued for the account of that Person or as to which
that Person is otherwise liable for reimbursement of drawings or payments, (ii)
as a partner or joint venturer in any partnership or joint venture, (iii) to
purchase any materials, supplies or other property from, or to obtain the
services of, another Person if the relevant contract or other related document
or obligation requires that payment for such materials, supplies or other
property, or for such services, shall be made regardless of whether delivery of
such materials, supplies or other property is ever made or tendered, or such
services are ever performed or tendered, (iv) in respect to any Rate Contract
that is not entered into in connection with a bona fide hedging

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operation that provides offsetting benefits to such Person, or (v) to purchase
or sell Equity Securities or other securities of any Person. The amount of any
Contingent Obligation shall (subject, in the case of Guaranty Obligations, to
the last sentence of the definition of “Guaranty Obligation”) be deemed equal to
the maximum reasonably anticipated liability in respect thereof; provided, that
(A) in the case of item (b)(v) of this definition, the amount of the Contingent
Obligation with respect to the purchase or sale of such Equity Securities or
other securities shall be the net settlement amount to be paid in cash or
securities, and (B) in the case of item (b)(iv) of this definition, the
Contingent Obligation with respect to such Rate Contracts shall be marked to
market on a current basis.

          “Contractual Obligation” of any Person shall mean, any indenture,
note, lease, loan agreement, security, deed of trust, mortgage, security
agreement, guaranty, instrument, contract, agreement or other form of
contractual obligation or undertaking to which such Person is a party or by
which such Person or any of its property is bound.

          “Credit Documents” shall mean and include this Agreement, the Notes
and the Administrative Agent’s Fee Letter; all other documents, instruments and
agreements delivered to Administrative Agent or any Lender pursuant to Paragraph
3.01; and all other documents, instruments and agreements pursuant to the terms
of this Agreement required to be delivered by Borrower or any of its
Subsidiaries to Administrative Agent or any Lender in connection with this
Agreement on or after the date of this Agreement.

          “Credit Event” shall mean the making of any Loan (other than the
making of a Base Rate Loan solely to repay an existing Loan); the conversion of
any Portion into a LIBOR Portion; or the selection of a new Interest Period for
any LIBOR Loan or LIBOR Portion.

          “Debt/EBITDA Ratio” shall mean, with respect to Borrower for any
consecutive four-quarter period, the ratio, determined on a consolidated basis
in accordance with GAAP, of:

          (a) The total Indebtedness of Borrower and its Subsidiaries on the
last day of such period, excluding any Indebtedness under or with respect to
currency exchange Rate Contracts;

to

          (b) The EBITDA of Borrower and its Subsidiaries for such period.

          “Default” shall mean an Event of Default or any event or circumstance
not yet constituting an Event of Default which, with the giving of any notice or
the lapse of any period of time or both, would become an Event of Default.

          “Defaulting Lender” shall mean a Lender which has failed to fund its
portion of any Borrowing which it is required to fund under this Agreement and
has continued in such failure for five (5) Business Days.

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          “Document Delivery Date” shall have the meaning given to that term in
Subparagraph 3.01.

          “Dollars” and “$” shall mean the lawful currency of the United States
of America and, in relation to any payment under this Agreement, same day or
immediately available funds.

          “Domestic Lending Office” shall mean, with respect to any Lender, (a)
initially, its office designated as such in Schedule I (or, in the case of any
Lender which becomes a Lender by an assignment pursuant to Subparagraph 8.05(c),
its office designated as such in the applicable Assignment Agreement) and (b)
subsequently, such other office or offices as such Lender may designate to
Administrative Agent as the office at which such Lender’s Base Rate Loans and
Base Rate Portions will thereafter be maintained and for the account of which
all payments of principal of, and interest on, such Lender’s Base Rate Loans and
Base Rate Portions will thereafter be made.

          “EBITDA” shall mean, with respect to Borrower for any period, the sum,
determined on a consolidated basis in accordance with GAAP, of the following:

          (a) The net income or net loss of Borrower and its Subsidiaries for
such period before provision for income taxes;

plus

          (b) The sum (to the extent deducted in calculating net income or loss
in clause (a) above) of (i) all Interest Expenses of Borrower and its
Subsidiaries for such period, (ii) all depreciation and amortization expenses of
Borrower and its Subsidiaries for such period, and (iii) all non-cash charges
taken by Borrower and its Subsidiaries during such period for in-process
research and development.

 

          “Eligible Assignee” shall mean a Person that is a commercial bank or
another financial institution which is a qualified institutional buyer as
defined in Rule 144A under the Securities Act of 1933, as amended; provided that
(i) such Person has a combined capital and surplus of at least $100,000,000 and
(ii) such Person is acting through a branch, agency or office located in the
United States.

          “Employee Benefit Plan” shall mean any employee benefit plan within
the meaning of section 3(3) of ERISA maintained or contributed to by Borrower or
any ERISA Affiliate, other than a Multiemployer Plan.

          “Environmental Laws” shall mean the Clean Air Act, 42 U.S.C. Section
7401 et seq.; the Federal Water Pollution Control Act, 33 U.S.C. Section 1251 et
seq.; the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Section 6901
et seq.; the Comprehensive Environment Response, Compensation and Liability Act
of 1980 (including the Superfund Amendments and Reauthorization Act of 1986,
“CERCLA”), 42 U.S.C. Section 9601 et seq.; the Toxic Substances Control Act, 15
U.S.C. Section 2601 et seq.; the Occupational Safety and Health Act, 29 U.S.C.
Section 651; the

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Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Section
11001 et seq.; the Mine Safety and Health Act of 1977, 30 U.S.C. Section 801 et
seq.; the Safe Drinking Water Act, 42 U.S.C. Section 300f et seq.; and all other
Governmental Rules relating to the protection of human health and the
environment, including all Governmental Rules pertaining to the reporting,
licensing, permitting, transportation, storage, disposal, investigation or
remediation of emissions, discharges, releases, or threatened releases of
Hazardous Materials into the air, surface water, groundwater, or land, or
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transportation or handling of Hazardous Materials.

          “Equity Securities” of any Person shall mean (a) all common stock,
preferred stock, participations, shares, partnership interests or other equity
interests in and of such Person (regardless of how designated and whether or not
voting or non-voting) and (b) all warrants, options and other rights to acquire
or sell any of the foregoing.

          “ERISA” shall mean the Employee Retirement Income Security Act of
1974. “ERISA Affiliate” shall mean any Person which is treated as a single
employer with Borrower under Section 414 of the IRC.

          “Extension Request” shall have the meaning given to that term in
Subparagraph 2.02(a).

          “Euro-Dollar Lending Office” shall mean, with respect to any Lender,
(a) initially, its office designated as such in Schedule I (or, in the case of
any Lender which becomes a Lender by an assignment pursuant to Subparagraph
8.05(c), its office designated as such in the applicable Assignment Agreement)
and (b) subsequently, such other office or offices as such Lender may designate
to Administrative Agent as the office at which such Lender’s LIBOR Loans and
LIBOR Portions will thereafter be maintained and for the account of which all
payments of principal of, and interest on, such Lender’s LIBOR Loans and LIBOR
Portions will thereafter be made.

          “Event of Default” shall have the meaning given to that term in
Paragraph 6.01.

          “Federal Funds Rate” shall mean, for any day, the rate per annum set
forth in the weekly statistical release designated as H.15(519), or any
successor publication, published by the Federal Reserve Board (including any
such successor publication, “H.15 (519)”) for such day opposite the caption
“Federal Funds (Effective)”. If on any relevant day, such rate is not yet
published in H.15 (519), the rate for such day shall be the rate set forth in
the daily statistical release designated as the Composite 3:30 p.m. Quotations
for U.S. Government Securities, or any successor publication, published by the
Federal Reserve Bank of New York (including any such successor publication, the
“Composite 3:30 p.m. Quotations”) for such day under the caption “Federal Funds
Effective Rate”. If on any relevant day, such rate is not yet published in
either H.15 (519) or the Composite 3:30 p.m. Quotations, the rate for such day
shall be the arithmetic mean, as determined by Administrative Agent, of the
rates quoted to Administrative Agent for such day by three

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(3) Federal funds brokers of recognized standing selected by Administrative
Agent, and Administrative Agent shall promptly provide written evidence of such
calculation to Borrower.

          “Federal Reserve Board” shall mean the Board of Governors of the
Federal Reserve System.

          “Financial Statements” shall mean, with respect to any accounting
period for any Person, statements of income, shareholders’ equity and cash flows
of such Person for such period, and a balance sheet of such Person as of the end
of such period, setting forth in each case in comparative form figures for the
corresponding period in the preceding fiscal year if such period is less than a
full fiscal year or, if such period is a full fiscal year, corresponding figures
from the preceding annual audit, all prepared in reasonable detail and in
accordance with GAAP.

          “Fixed Charge Coverage Ratio” shall mean, with respect to Borrower for
any consecutive four-quarter period, the ratio, determined on a consolidated
basis in accordance with GAAP, of:

          (a) The sum of (i) the net income of Borrower and its Subsidiaries for
such period, plus (ii) to the extent deducted in calculating such net income,
(A) all Interest Expenses of Borrower and its Subsidiaries for such period, (B)
all income tax expenses of Borrower and its Subsidiaries for such period, (C)
all rental expenses of Borrower and its Subsidiaries for such period, (D) all
non-cash charges taken by Borrower and its Subsidiaries during such period for
in-process research and development, and (E) all amortization charges for
goodwill taken by Borrower and its Subsidiaries during such period;

to

          (b) The sum of (i) all Interest Expenses of Borrower and its
Subsidiaries for such period, plus (ii) all rental expenses of Borrower and its
Subsidiaries for such period, plus (iii) the current portion of all long-term
Indebtedness of Borrower and its Subsidiaries appearing on the consolidated
balance sheet of Borrower and its Subsidiaries on the last day of such period,
plus without duplication, (iv) twenty percent (20%) of all off-balance sheet
Indebtedness of Borrower and its Subsidiaries on the last day of such period;
provided, however, that any Indebtedness under or with respect to currency
exchange Rate Contracts shall be excluded for purposes of the calculation under
this subparagraph (b).

          “Foreign Plan” shall mean any employee benefit plan maintained by
Borrower or any of its Subsidiaries which is mandated or governed by any
Governmental Rule of any Governmental Authority other than the United States.

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          “GAAP” shall mean generally accepted accounting principles and
practices as in effect in the United States of America from time to time,
consistently applied.

          “Governmental Authority” shall mean any domestic or foreign national,
state or local government, any political subdivision thereof, any department,
agency, authority or bureau of any of the foregoing, or any other entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, including, without limitation, the
Federal Deposit Insurance Corporation, the Federal Reserve Board, the
Comptroller of the Currency, any central bank or any comparable authority.

          “Governmental Charges” shall mean, with respect to any Person, all
levies, assessments, fees, claims or other charges imposed by any Governmental
Authority upon such Person or any of its property or otherwise payable by such
Person.

          “Governmental Rule” shall mean any law, rule, regulation, ordinance,
order, code interpretation, judgment, decree, directive, guidelines, policy or
similar form of decision of any Governmental Authority which is made publicly
available.

          “Granting Lender” shall have the meaning given to that term in
Subparagraph 8.05(d).

          “Guaranty Obligation” shall mean, with respect to any Person, any
direct or indirect liability of that Person with respect to any indebtedness,
lease, dividend, letter of credit or other obligation (the “primary
obligations”) of another Person (the “primary obligor”), including any
obligation of that Person, whether or not contingent, (a) to purchase,
repurchase or otherwise acquire such primary obligations or any property
constituting direct or indirect security therefor, or (b) to advance or provide
funds (i) for the payment or discharge of any such primary obligation, or (ii)
to maintain working capital or equity capital of the primary obligor or
otherwise to maintain the net worth or solvency or any balance sheet item, level
of income or financial condition of the primary obligor, or (c) to purchase
property, securities or services primarily for the purpose of assuring the owner
of any such primary obligation of the ability of the primary obligor to make
payment of such primary obligation, or (d) otherwise to assure or hold harmless
the holder of any such primary obligation against loss in respect thereof. The
amount of any Guaranty Obligation shall be deemed equal to the stated or
determinable amount of the primary obligation in respect of which such Guaranty
Obligation is made or, if not stated or if indeterminable, the maximum
reasonably anticipated liability in respect thereof.

          “Hazardous Materials” shall mean all pollutants, contaminants and
other materials, substances and wastes which are hazardous, toxic, caustic,
harmful or dangerous to human health or the environment, including petroleum and
petroleum products and byproducts, radioactive materials, asbestos,
polychlorinated biphenyls and all materials, substances and wastes which are
classified or regulated as “hazardous,” “toxic” or similar descriptions under
any Environmental Law.

          “Indebtedness” of any Person shall mean, without duplication:

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          (a) All obligations of such Person evidenced by notes, bonds,
debentures or other similar instruments and all other obligations of such Person
for borrowed money (including obligations to repurchase receivables and other
assets sold with recourse);

          (b) All obligations of such Person for the deferred purchase price of
property or services (including obligations under letters of credit and other
credit facilities which secure or finance such purchase price and obligations
under “synthetic” leases);

          (c) All obligations of such Person under conditional sale or other
title retention agreements with respect to property acquired by such Person (to
the extent of the value of such property if the rights and remedies of the
seller or lender under such agreement in the event of default are limited solely
to repossession or sale of such property);

          (d) All obligations of such Person as lessee under or with respect to
Capital Leases;

          (e) All non-contingent payment or reimbursement obligations of such
Person under or with respect to Surety Instruments;

          (f) All net obligations of such Person, contingent or otherwise, under
or with respect to Rate Contracts;

          (g) All Guaranty Obligations of such Person with respect to the
obligations of other Persons of the types described in clauses (a) - (f) above
and all other Contingent Obligations of such Person; and

          (h) All obligations of other Persons of the types described in clauses
(a) - (f) above to the extent secured by (or for which any holder of such
obligations has an existing right, contingent or otherwise, to be secured by)
any Lien in any property (including accounts and contract rights) of such
Person, even though such Person has not assumed or become liable for the payment
of such obligations.

          “Interest Expenses” shall mean, with respect to any Person for any
period, the sum, determined on a consolidated basis in accordance with GAAP, of
(a) all interest on the Indebtedness of such Person paid or accrued during such
period (including interest attributable to Capital Leases) plus (b) all fees in
respect of outstanding letters of credit paid or accrued by such Person during
such period.

          “Interest Period” shall mean, with respect to any LIBOR Loan or LIBOR
Portion, the time period selected by Borrower pursuant to Subparagraph 2.01(b),
Subparagraph 2.03(b) or Subparagraph 2.04(c) which commences on the first day of
such Loan or Portion or the effective date of any conversion and ends on the
last day of such time period, and thereafter, each subsequent time period
selected by Borrower pursuant to

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Subparagraph 2.04(b) which commences on the last day of the immediately
preceding time period and ends on the last day of that time period.

          “Investment” of any Person shall mean any loan or advance of funds by
such Person to any other Person (other than advances to employees of such Person
for moving and travel expenses, drawing accounts and similar expenditures in the
ordinary course of business), any purchase or other acquisition of any Equity
Securities or Indebtedness of any other Person, any capital contribution by such
Person to or any other investment by such Person in any other Person (including
any Guaranty Obligations of such Person and any indebtedness of such Person of
the type described in clause (h) of the definition of “Indebtedness” on behalf
of any other Person); provided, however, that Investments shall not include (a)
accounts receivable or other indebtedness owed by customers of such Person which
are current assets and arose from sales of inventory in the ordinary course of
such Person’s business, (b) prepaid expenses of such Person incurred and prepaid
in the ordinary course of business, or (c) acquisitions of Equity Securities
subject to Subparagraph 5.02(d).

          “IRC” shall mean the Internal Revenue Code of 1986.

          “Lenders” shall have the meaning given to that term in clause (2) of
the introductory paragraph hereof.

          “LIBO Rate” shall mean, with respect to any Interest Period for the
LIBOR Loans in any Revolving Loan Borrowing consisting of LIBOR Loans or any
LIBOR Portion of the Term Loan Borrowing, a rate per annum equal to the quotient
(rounded upward if necessary to the nearest 1/100 of one percent) of:

          (a) As elected by Borrower, either:

          (i) The arithmetic mean (rounded upward if necessary to the nearest
1/16 of one percent) of the rates per annum appearing on Telerate Page 3750 (or
any successor publication) on the second Business Day prior to the first day of
such Interest Period at or about 11:00 A.M. (London time) (for delivery on the
first day of such Interest Period) for a term comparable to such Interest Period
(the “Telerate Page Rate”); or

          (ii) The arithmetic mean (rounded upward if necessary to the nearest
1/16 of one percent) of the rates per annum at which Dollar deposits are offered
to each of the Reference Banks in the London interbank market on the second
Business Day prior to the first day of such Interest Period at or about 11:00
A.M. (London time) (for delivery on the first day of such Interest Period) in an
amount substantially equal to such Reference Bank’s LIBOR Loan or LIBOR Portion
in such Borrowing and for a term comparable to such Interest Period (the
“Reference Bank Rate”);

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divided by

          (b) One minus the Reserve Requirement for such Loans or Portion in
effect from time to time.

If, for any reason, any Reference Banks do not provide Administrative Agent with
rates pursuant to clause (a)(ii) after Borrower elects the Reference Bank Rate
to determine the LIBO Rate for any Interest Period, Administrative Agent shall
calculate the Reference Bank Rate for such Interest Period based upon the rate
or rates provided by the other Reference Banks or Reference Bank; provided,
however, that, if no Reference Bank provides Administrative Agent with such a
rate, Administrative Agent shall determine the LIBO Rate for such Interest
Period based upon the Telerate Page Rate. If, for any reason, the Telerate Page
Rate is not available after Borrower elects the Telerate Page Rate to determine
the LIBO Rate for any Interest Period, Administrative Agent shall determine the
LIBO Rate for such Interest Period based upon the Reference Bank Rate. The LIBO
Rate shall be adjusted automatically as to all LIBOR Loans and LIBOR Portions
then outstanding as of the effective date of any change in the Reserve
Requirement.

          “LIBOR Loan” shall mean, at any time, a Revolving Loan which then
bears interest as provided in clause (ii) of Subparagraph 2.04(a). “LIBOR
Portion” shall mean, at any time, a Portion of the Term Loan Borrowing or a Term
Loan, as the case may be, which then bears interest as provided in clause (ii)
of Subparagraph 2.04(a).

          “Lien” shall mean, with respect to any property, any security
interest, mortgage, pledge, lien, charge or other encumbrance in, of, or on such
property or the income therefrom, including, without limitation, the interest of
a vendor or lessor under a conditional sale agreement, Capital Lease or other
title retention agreement, or any agreement to provide any of the foregoing, and
the filing of any financing statement or similar instrument under the Uniform
Commercial Code or comparable law of any jurisdiction other than filings made
for notice purposes only in connection with true leases (which would not include
“synthetic” leases).

          “Loan” shall mean a Revolving Loan or a Term Loan.

          “Loan Account” shall have the meaning given to that term in
Subparagraph 2.10(a).

          “Majority Lenders” shall mean at any time, Lenders whose Proportionate
Shares then exceed fifty percent (50%), except at any time any Lender is a
Defaulting Lender. (For the purposes of determining “Majority Lenders” at any
time any Lender is a Defaulting Lender, the “Proportionate Shares” of
non-defaulting Lenders shall be determined excluding from the Total Commitment
and the aggregate principal amount of all Term Loans the aggregate amounts of
the Defaulting Lenders’ Commitments and

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Term Loans; and “Majority Lenders” shall mean non-defaulting Lenders whose
Proportionate Shares as so determined then exceed fifty percent (50%).)

          “Margin Stock” shall have the meaning given to that term in Regulation
U issued by the Federal Reserve Board.

          “Material Adverse Effect” shall mean a material adverse effect on (a)
the business, assets, operations or financial condition of Borrower and its
Subsidiaries, taken as a whole; (b) the ability of Borrower to pay or perform
the Obligations in accordance with the terms of this Agreement and the other
Credit Documents; or (c) practical realization of the material rights and
remedies of Administrative Agent or any Lender intended to be provided under
this Agreement and the other Credit Documents.

          “Material Subsidiary” shall mean any Subsidiary that had revenues
during the immediately preceding fiscal year equal to or greater than five
percent (5%) of the consolidated gross revenues of Borrower and its Subsidiaries
during such year.

          “Maturity” shall mean, with respect to any Loan, interest, fee or
other amount payable by Borrower under this Agreement or the other Credit
Documents, the date such Loan, interest, fee or other amount becomes due,
whether upon the stated maturity or due date, upon acceleration or otherwise.

          “Maturity Date” shall mean (a) with respect to the Revolving Loans,
the Revolving Loan Maturity Date and (b) with respect to the Term Loans, the
Term Loan Maturity Date.

          “Multiemployer Plan” shall mean any multiemployer plan within the
meaning of section 3(37) of ERISA maintained or contributed to by Borrower or
any ERISA Affiliate.

          “New Lender” shall have the meaning given to that term in Subparagraph
2.06(a).

          “New Lender Joinder” shall have the meaning given to that term in
Subparagraph 2.06(a).

          “Net Proceeds” shall mean, with respect to any sale or issuance of any
Equity Security or any other security by any Person, the aggregate consideration
received by such Person from such sale or issuance less the sum of the actual
amount of the reasonable fees and commissions payable to Persons other than such
Person or any Affiliate of such Person, the reasonable legal expenses and the
other reasonable costs and expenses directly related to such sale or issuance
that are to be paid by such Person.

          “Net Share Repurchases” shall mean, with respect to Borrower for any
period, the remainder, calculated on a consolidated basis, of (a) the aggregate
consideration paid by Borrower and its Subsidiaries during such period
(including Indebtedness incurred) to purchase, redeem, retire, defease or
otherwise acquire Equity Securities of Borrower and its Subsidiaries minus (b)
the aggregate Net Proceeds received by Borrower and its

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Subsidiaries during such period for Equity Securities issued by Borrower and its
Subsidiaries; provided, that (i) capital stock of Borrower and its Subsidiaries
issued in exchange for other capital stock of Borrower and its Subsidiaries as
permitted by clause (i) of Subparagraph 5.02(f) shall be excluded for purposes
of calculating clauses (a) and (b) above, (ii) repurchases of capital stock from
employees of Borrower or its Subsidiaries as permitted by clause (iv) of
Subparagraph 5.02(f) shall be excluded for purposes of calculating clause (a)
above, and (iii) Equity Securities issued in connection with acquisitions
permitted by Subparagraph 5.02(d) shall be excluded for purposes of calculating
clause (b) above.

          “Net Worth” shall mean, with respect to Borrower at any time, the
remainder at such time, determined on a consolidated basis in accordance with
GAAP, of (a) the total assets of Borrower and its Subsidiaries at such time,
minus (b) the sum (without limitation and without duplication of deductions) of
the total liabilities of Borrower and its Subsidiaries at such time and all
reserves of Borrower and its Subsidiaries at such time for anticipated losses
and expenses (to the extent not deducted in calculating total assets in clause
(a) above).

          “Note” shall mean a Revolving Loan Note or a Term Loan Note.

          “Notice of Borrowing” shall mean a Notice of Revolving Loan Borrowing
or the Notice of Term Loan Borrowing.

          “Notice of Term Loan Borrowing” shall have the meaning given to that
term in Subparagraph 2.03(b).

          “Notice of Interest Period Selection” shall have the meaning given to
that term in Subparagraph 2.04(b).

          “Notice of Revolving Loan Borrowing” shall have the meaning given to
that term in Subparagraph 2.01(b).

          “Notice of Term Loan Conversion” shall have the meaning given to that
term in Subparagraph 2.04(c).

          “Obligations” shall mean and include, with respect to Borrower, all
loans, advances, debts, liabilities, and obligations, howsoever arising, owed by
Borrower to Administrative Agent or any Lender of every kind and description
(whether or not evidenced by any note or instrument and whether or not for the
payment of money), direct or indirect, absolute or contingent, due or to become
due, now existing or hereafter arising pursuant to the terms of this Agreement
or any of the other Credit Documents, including without limitation all interest,
fees, charges, expenses, attorneys’ fees and accountants’ fees chargeable to
Borrower or payable by Borrower hereunder or thereunder.

          “Participant” shall have the meaning given to that term in
Subparagraph 8.05(b).

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          “PBGC” shall mean the Pension Benefit Guaranty Corporation. “Permitted
Indebtedness” shall have the meaning given to that term in Subparagraph 5.02(a).

          “Permitted Liens” shall have the meaning given to that term in
Subparagraph 5.02(b).

          “Person” shall mean and include an individual, a partnership, a
corporation (including a business trust), a joint stock company, an
unincorporated association, a limited liability company, a joint venture, a
trust or other entity or a Governmental Authority.

          “Portion” shall mean a portion of the principal amount of the Term
Loan Borrowing or a Term Loan. The Term Loan Borrowing shall consist of one or
more Portions, and each Term Loan comprising the Term Loan Borrowing shall
consist of the same number of Portions, with each such Term Loan Portion
corresponding pro rata to a Term Loan Borrowing Portion. Any reference to a
Portion of the Term Loan Borrowing shall include the corresponding Portion of
each Term Loan comprising the Term Loan Borrowing.

          “Pricing Grid” shall mean Schedule II.

          “Pricing Period” shall mean (a) the period commencing on the date of
this Agreement and ending on September 30, 2000, (b) the three-calendar month
period commencing October 1, 2000 and ending December 31, 2000 and (c) each
consecutive three-calendar month period thereafter which commences on the day
following the last day of the immediately preceding three-calendar month period
and ends on the last day of that time period.

          “Prime Rate” shall mean the per annum rate publicly announced by ABN
AMRO from time to time at its Chicago Office. The Prime Rate is determined by
ABN AMRO from time to time as a means of pricing credit extensions to some
customers and is neither directly tied to any external rate of interest or index
nor necessarily the lowest rate of interest charged by ABN AMRO at any given
time for any particular class of customers or credit extensions. Any change in
the Base Rate resulting from a change in the Prime Rate shall become effective
on the Business Day on which each change in the Prime Rate occurs.

          “Proportionate Share” shall mean:

          (a) With respect to any Lender at any time prior to the termination of
the Commitments, the ratio (expressed as a percentage rounded to the eighth
digit to the right of the decimal point) of (i) such Lender’s Commitment at such
time to (ii) the Total Commitment at such time; and

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          (b) With respect to any Lender at any time after the termination of
the Commitments, the ratio (expressed as a percentage rounded to the eighth
digit to the right of the decimal point) of (i) the aggregate principal amount
of all of such Lender’s Loans outstanding at such time to (ii) the aggregate
principal amount of all Lenders’ Loans outstanding at such time.

          “Quick Ratio” shall mean, with respect to Borrower and its
Subsidiaries at any time, the ratio, determined on a consolidated basis in
accordance with GAAP, of:

          (a) The sum at such time, to the extent unencumbered and unrestricted,
of all (i) cash of Borrower and its Subsidiaries; (ii) cash equivalents of
Borrower and its Subsidiaries; (iii) short-term investments of Borrower and its
Subsidiaries which comply with the investment policy of Borrower meeting the
requirements of clause (i) of Subparagraph 5.02(e) and (iv) accounts receivable
of Borrower and its Subsidiaries, net of appropriate loss and other reserves
therefor;

to

          (b) The sum at such time of all (i) current liabilities of Borrower
and its Subsidiaries (including the current portion of all Loans hereunder); and
(ii) to the extent not included in such current liabilities under the preceding
clause (i), the current portion of all Indebtedness of the types described in
clauses (a) – (d) of the definition of “Indebtedness”.

          “Rate Contracts” shall mean swap agreements (as that term is defined
in Section 101 of the Federal Bankruptcy Reform Act of 1978, as amended) and any
other agreements or arrangements designed to provide protection against
fluctuations in interest or currency exchange rates.

          “Reference Bank Rate” shall have the meaning given to that term in
clause (a)(ii) of the definition of “LIBO Rate” in Paragraph 1.01.

          “Reference Banks” shall mean ABN AMRO, Bank of Montreal and Fleet
National Bank.

          “Register” shall have the meaning given to that term in Subparagraph
8.05(e). “Reportable Event” shall have the meaning given to that term in ERISA
and applicable regulations thereunder.

          “Required Lenders” shall mean, at any time, Lenders whose
Proportionate Shares then equal or exceed sixty-six and two-thirds percent (66
2/3%), except at any time any Lender is a Defaulting Lender. (For the purposes
of determining “Required Lenders” at any time any Lender is a Defaulting Lender,
the “Proportionate Shares” of non-defaulting Lenders shall be determined
excluding from the Total Commitment and the aggregate principal amount of all
Term Loans the aggregate amounts of the Defaulting Lenders’ Commitments and Term
Loans; and “Required Lenders” shall mean non-defaulting

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Lenders whose Proportionate Shares as so determined then equal or exceed
sixty-six and two-thirds percent (66 2/3%).)

          “Requirement of Law” applicable to any Person shall mean (a) the
Articles or Certificate of Incorporation and By-laws, Partnership Agreement or
other organizational or governing documents of such Person, (b) any Governmental
Rule applicable to such Person, (c) any license, permit, approval or other
authorization granted by any Governmental Authority to or for the benefit of
such Person or (d) any judgment, decision or determination of any Governmental
Authority or arbitrator, in each case applicable to or binding upon such Person
or any of its property or to which such Person or any of its property is
subject.

          “Reserve Requirement” shall mean, with respect to any day in an
Interest Period for a LIBOR Loan or LIBOR Portion, the aggregate of the reserve
requirement rates (expressed as a decimal) in effect on such day for
eurocurrency funding (currently referred to as “Eurocurrency liabilities” in
Regulation D of the Federal Reserve Board) maintained by a member bank of the
Federal Reserve System. As used herein, the term “reserve requirement” shall
include, without limitation, any basic, supplemental or emergency reserve
requirements imposed on any Lender by any Governmental Authority. “Revolving
Loan” shall have the meaning given to that term in Subparagraph 2.01(a).

          “Revolving Loan Borrowing” shall mean a borrowing by Borrower
consisting of the Revolving Loans made by each of the Lenders on the same date
and of the same Type pursuant to a single Notice of Revolving Loan Borrowing.

          “Revolving Loan Maturity Date” shall mean the date 364 days after the
date of this Agreement (or, if extended pursuant to Paragraph 2.02, the date to
which so extended).

          “Revolving Loan Note” shall have the meaning given to that term in
Subparagraph 2.10(b).

          “Solvent” shall mean, with respect to any Person on any date, that on
such date (a) the fair value of the property of such Person is greater than the
fair value of the liabilities (including contingent, subordinated, matured and
unliquidated liabilities) of such Person, (b) the present fair saleable value of
the assets of such Person is greater than the amount that will be required to
pay the probable liability of such Person on its debts as they become absolute
and matured, (c) such Person does not intend to, and does not believe that it
will, incur debts or liabilities beyond such Person’s ability to pay as such
debts and liabilities mature and (d) such Person is not engaged in or about to
engage in business or transactions for which such Person’s property would
constitute an unreasonably small capital.

          “SPC” shall have the meaning given to that term in Subparagraph
8.05(d).

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          “Subsidiary” of any Person shall mean (a) any corporation of which
more than 50% of the issued and outstanding Equity Securities having ordinary
voting power to elect a majority of the Board of Directors of such corporation
(irrespective of whether at the time capital stock of any other class or classes
of such corporation shall or might have voting power upon the occurrence of any
contingency) is at the time directly or indirectly owned or controlled by such
Person, by such Person and one or more of its other Subsidiaries or by one or
more of such Person’s other Subsidiaries, (b) any partnership, joint venture,
limited liability company or other association of which more than 50% of the
equity interest having the power to vote, direct or control the management of
such partnership, joint venture or other association is at the time owned and
controlled by such Person, by such Person and one or more of the other
Subsidiaries or by one or more of such Person’s other Subsidiaries or (c) any
other Person whose results of operations are included in the Financial
Statements of such Person on a consolidated basis.

          “Surety Instruments” shall mean all letters of credit (including
standby and commercial), banker’s acceptances, bank guaranties, shipside bonds,
surety bonds and similar instruments.

          “Taxes” shall have the meaning given to such term in Subparagraph
2.14(a).

          “Telerate Page Rate” shall have the meaning given to that term in
clause (a)(i) of the definition of “LIBO Rate” in Paragraph 1.01.

          “Term Loan” shall have the meaning given to that term in Subparagraph
2.03(a).

          “Term Loan Borrowing” shall mean the borrowing by Borrower consisting
of the Term Loans made by each of the Lenders on the Revolving Loan Maturity
Date pursuant to the Notice of Term Loan Borrowing.

          “Term Loan Maturity Date” shall mean the date two years after the
Revolving Loan Maturity Date.

          “Term Loan Note” shall have the meaning given to that term in
Subparagraph 2.10(c).

          “Total Commitment” shall mean, at any time, the sum at such time of
the Lenders’ Commitments.

          “Type” shall mean, with respect to any Loan, Borrowing or Portion at
any time, the classification of such Loan, Borrowing or Portion by the type of
interest rate it then bears, whether an interest rate based upon the Base Rate
or the LIBO Rate.

          “Unused” shall mean. with respect to the Commitments at any time, the
remainder of (i) the Total Commitment at such time minus (ii) the aggregate
principal amount of all Revolving Loans outstanding at such time.

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          “VC Partnership” shall have the meaning given to that term in
Subparagraph 5.02(e).

          1.02. GAAP. Unless otherwise indicated in this Agreement or any other
Credit Document, all accounting terms used in this Agreement or any other Credit
Document shall be construed, and all accounting and financial computations
hereunder or thereunder shall be computed, in accordance with GAAP. If GAAP
changes during the term of this Agreement such that any covenants contained
herein would then be calculated in a different manner or with different
components, Borrower, Lenders and Administrative Agent agree to negotiate in
good faith to amend this Agreement in such respects as are necessary to conform
those covenants as criteria for evaluating Borrower’s financial condition to
substantially the same criteria as were effective prior to such change in GAAP;
provided, however, that, until Borrower, Lenders and Administrative Agent so
amend this Agreement, all such covenants shall be calculated in accordance with
GAAP as in effect immediately prior to such change.

          1.03. Headings. Headings in this Agreement and each of the other
Credit Documents are for convenience of reference only and are not part of the
substance hereof or thereof.

          1.04. Plural Terms. All terms defined in this Agreement or any other
Credit Document in the singular form shall have comparable meanings when used in
the plural form and vice versa.

          1.05. Time. All references in this Agreement and each of the other
Credit Documents to a time of day shall mean San Francisco, California time,
unless otherwise indicated.

          1.06. Governing Law. Unless otherwise expressly provided in any Credit
Document, this Agreement and each of the other Credit Documents shall be
governed by and construed in accordance with the laws of the State of California
without reference to conflicts of law rules.

          1.07. Construction. This Agreement is the result of negotiations
among, and has been reviewed by, Borrower, each Lender, Administrative Agent and
their respective counsel. Accordingly, this Agreement shall be deemed to be the
product of all parties hereto, and no ambiguity shall be construed in favor of
or against Borrower, any Lender or Administrative Agent.

          1.08. Entire Agreement. This Agreement and each of the other Credit
Documents, taken together, constitute and contain the entire agreement of
Borrower, Lenders and Administrative Agent and supersede any and all prior
agreements, negotiations, correspondence, understandings and communications
among the parties, whether written or oral, respecting the subject matter hereof
(excluding the Administrative Agent’s Fee Letter).

          1.09. Calculation of Interest and Fees. All calculations of interest
and fees under this Agreement and the other Credit Documents for any period (a)
shall include the first day of such period and exclude the last day of such
period and (b) shall be calculated on the basis of a year of 360 days for actual
days elapsed, except that during any period any Loan or Portion bears interest

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based upon the Prime Rate, such interest shall be calculated on the basis of a
year of 365 or 366 days, as appropriate, for actual days elapsed.

          1.10. References.

          (a) References in this Agreement to “Recitals,” “Sections,”
“Paragraphs,” “Subparagraphs,” “Exhibits” and “Schedules” are to recitals,
sections, paragraphs, subparagraphs, exhibits and schedules therein and thereto
unless otherwise indicated.

          (b) References in this Agreement or any other Credit Document to any
document, instrument or agreement (i) shall include all exhibits, schedules and
other attachments thereto, (ii) shall include all documents, instruments or
agreements issued or executed in replacement thereof if such replacement is
permitted hereby, and (iii) shall mean such document, instrument or agreement,
or replacement or predecessor thereto, as amended, modified and supplemented
from time to time and in effect at any given time if such amendment,
modification or supplement is permitted hereby.

          (c) References in this Agreement or any other Credit Document to any
Governmental Rule (i) shall include any successor Governmental Rule, (ii) shall
include all rules and regulations promulgated under such Governmental Rule (or
any successor Governmental Rule), and (iii) shall mean such Governmental Rule
(or successor Governmental Rule) and such rules and regulations, as amended,
modified, codified or reenacted from time to time and in effect at any given
time.

          (d) References in this Agreement or any other Credit Document to any
Person in a particular capacity (i) shall include any permitted successors to
and assigns of such Person in that capacity and (ii) shall exclude such Person
individually or in any other capacity.

          1.11. Other Interpretive Provisions. The words “hereof,” “herein” and
“hereunder” and words of similar import when used in this Agreement or any other
Credit Document shall refer to this Agreement or such other Credit Document, as
the case may be, as a whole and not to any particular provision of this
Agreement or such other Credit Document, as the case may be. The words “include”
and “including” and words of similar import when used in this Agreement or any
other Credit Document shall not be construed to be limiting or exclusive. In the
event of any inconsistency between the terms of this Agreement and the terms of
any other Credit Document, the terms of this Agreement shall govern.

SECTION II.     CREDIT FACILITIES.

          2.01. Revolving Loans.

          (a) Availability. Subject to the terms and conditions of this
Agreement, each Lender severally agrees to advance to Borrower from time to time
during the period beginning on the date of this Agreement and ending on the
Revolving Loan Maturity Date

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such revolving loans as Borrower may request (individually, a “Revolving Loan”);
provided, however, that:

          (i) The aggregate principal amount of all Revolving Loans made by each
Lender at any time outstanding shall not exceed such Lender’s Commitment at such
time; and

          (ii) The aggregate principal amount of all Revolving Loans made by all
Lenders at any time outstanding shall not exceed the Total Commitment at such
time.

All Revolving Loans shall be made on a pro rata basis by Lenders in accordance
with their respective Proportionate Shares, with each Revolving Loan Borrowing
to be comprised of a Revolving Loan by each Lender equal to such Lender’s
Proportionate Share of such Borrowing. Except as otherwise provided herein,
Borrower may borrow, repay and reborrow Revolving Loans until the Revolving Loan
Maturity Date.

          (b) Notice of Revolving Loan Borrowing. Borrower shall request each
Revolving Loan Borrowing by delivering to Administrative Agent an irrevocable
written notice in the form of Exhibit A, appropriately completed (a “Notice of
Revolving Loan Borrowing”), which specifies, among other things:

          (i) The principal amount of the requested Revolving Loan Borrowing,
which shall be in the amount of (A) $1,000,000 or an integral multiple of
$100,000 in excess thereof in the case of a Borrowing consisting of Base Rate
Loans; or (B) $2,500,000 or an integral multiple of $500,000 in excess thereof
in the case of a Borrowing consisting of LIBOR Loans;

          (ii) Whether the requested Revolving Loan Borrowing is to consist of
Base Rate Loans or LIBOR Loans;

          (iii) If the requested Revolving Loan Borrowing is to consist of LIBOR
Loans, the initial Interest Period selected by Borrower for such LIBOR Loans in
accordance with Subparagraph 2.04(b);

          (iv) If the requested Revolving Loan Borrowing is to consist of LIBOR
Loans, whether the initial LIBO Rate is to be based upon the Telerate Page Rate
or the Reference Bank Rate; and

          (v) The date of the requested Revolving Loan Borrowing, which shall be
a Business Day; 

Borrower shall give each Notice of Revolving Loan Borrowing to Administrative
Agent at least three (3) Business Days before the date of the requested
Revolving Loan Borrowing in the case of a Revolving Loan Borrowing consisting of
LIBOR Loans and at least one (1) Business Day before the date of the requested
Revolving Loan Borrowing in the case of a Revolving Loan Borrowing consisting of
Base Rate Loans. Each Notice of

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Revolving Loan Borrowing shall be delivered by first-class mail or facsimile to
Administrative Agent at the office or facsimile number and during the hours
specified in Paragraph 8.01; provided, however, that (A) Borrower shall promptly
deliver to Administrative Agent the original of any Notice of Revolving Loan
Borrowing initially delivered by facsimile and (B) in the case of any
outstanding Revolving Loan Borrowing which is being rolled over in the same
principal amount, Borrower may deliver such Notice of Revolving Loan Borrowing
electronically, with a digital signature, to the email address of Administrative
Agent. Administrative Agent shall promptly notify each Lender of the contents of
each Notice of Revolving Loan Borrowing.

          (c) Repayment. Unless Borrower converts all Revolving Loans
outstanding on the Revolving Loan Maturity Date into term loans pursuant to
Paragraph 2.03, Borrower shall repay the outstanding principal amount of all
Revolving Loans on such date.

          2.02. Extension of Revolving Loan Maturity Date.

          (a) Extension Requests. Borrower may request Lenders to extend the
Revolving Loan Maturity Date for additional 364-day periods. Borrower shall
request each such extension by appropriately completing, executing and
delivering to Administrative Agent a written request in the form of Exhibit B
(an “Extension Request”) on or before the last Business Day which is sixty (60)
days prior to the Revolving Loan Maturity Date. The Extension Request shall be
given to Administrative Agent by first-class mail or facsimile to the office or
the facsimile number and during the hours specified in Paragraph 8.01; provided,
however, that Borrower shall promptly deliver to Administrative Agent the
original of the Extension Request if initially delivered by facsimile.
Administrative Agent shall promptly deliver to each Lender three (3) copies of
any Extension Request received by Administrative Agent.

          (b) Lender Approval. Borrower understands that this Paragraph 2.02 is
included in this Agreement for Borrower’s convenience in requesting extensions
and acknowledges that neither Administrative Agent nor any Lender has promised
(either expressly or implicitly), or has any obligation or commitment, to extend
the Revolving Loan Maturity Date at any time. If a Lender, in its sole and
absolute discretion, consents to an Extension Request, such Lender shall
evidence such consent by executing and returning two (2) copies of the Extension
Request to Administrative Agent not later than the last Business Day which is
thirty (30) days prior to the Revolving Loan Maturity Date. Any such consent
given by a Lender shall be deemed irrevocable on the date that occurs thirty
(30) days prior to the existing Revolving Loan Maturity Date. Any failure by any
Lender so to execute and return an Extension Request shall be deemed a denial
thereof.

          (c) Notice of Lender Action. If Borrower delivers an Extension Request
to Administrative Agent pursuant to Subparagraph 2.02(a), then not later than
the last Business Day which is twenty-five (25) days prior to the Revolving Loan
Maturity Date, Administrative Agent shall notify Borrower and each Lender in
writing of (i) the Lenders that have consented to such Extension Request by
returning to Administrative Agent

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executed copies of such Extension Request and (ii) the Lenders that have not.
Administrative Agent shall deliver to Borrower with any such notice, a copy of
each executed Extension Request returned to Administrative Agent by a Lender.

(d) Effect of Lender Action. 

          (i) If all Lenders consent to an Extension Request pursuant to
Subparagraph 2.02(b), this Agreement shall be deemed amended as provided in
clause (iv) below and each such Lender shall remain a Lender under this
Agreement (as so amended).

          (ii) If none of the Lenders consent to an Extension Request, the
Revolving Loan Maturity Date shall remain unchanged.

          (iii) If some but not all of the Lenders consent to an Extension
Request, 

          (A) Borrower shall pay to each applicable non-consenting Lender, on
the existing Revolving Loan Maturity Date, all amounts payable to such Lender on
such date, and 

          (B) Subject to such payments, (1) each non-consenting Lender shall
cease to be a Lender hereunder after such date, (2) this Agreement shall be
deemed amended as provided in clause (iv) below, and (3) each consenting Lender
shall remain a Lender under this Agreement (as so amended) after such date;

Provided, however, that a non-consenting Lender may be replaced by an Assignee
Lender as provided in Paragraph 2.16.

          (iv) If all or some of Lenders consent to an Extension Request
pursuant to Subparagraph 2.02(b), this Agreement shall be deemed amended on the
existing Revolving Loan Maturity Date such that the date contained in the
definition of “Revolving Maturity Date” shall be extended to a date 364 days
from the existing Revolving Loan Maturity Date, effective as of the existing
Revolving Loan Maturity Date.

          2.03. Term Loans.

          (a) Availability. Subject to the terms and conditions of this
Agreement, each Lender severally agrees, if so requested by Borrower, to advance
to Borrower on the Revolving Loan Maturity Date a term loan (individually, a
“Term Loan”) by converting all Revolving Loans made by such Lender and
outstanding on such date into a term loan; provided, however, that: 

          (i) The aggregate principal amount of the Term Loan made by each
Lender shall not exceed such Lender’s Commitment on the Revolving Loan Maturity
Date; and

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          (ii) The aggregate principal amount of all Term Loans made by all
Lenders shall not exceed the Total Commitment on the Revolving Loan Maturity
Date.

The Term Loans shall be made on a pro rata basis by Lenders in accordance with
their respective Proportionate Shares, with the Term Loan Borrowing to be
comprised of a Term Loan by each Lender equal to such Lender’s Proportionate
Share of such Borrowing. Borrower may not reborrow the principal amount of a
Term Loan after any prepayment or repayment thereof.

          (b) Notice of Term Loan Borrowing. Borrower shall request the Term
Loan Borrowing by delivering to Administrative Agent an irrevocable written
notice in the form of Exhibit C, appropriately completed (the “Notice of Term
Loan Borrowing”), which specifies, among other things:

          (i) The principal amount of the Term Loan Borrowing;

          (ii) (A) The principal portion of the Term Loan Borrowing which is to
be a Base Rate Portion and (B) the principal portion(s) of the Term Loan
Borrowing which is (are) to be a LIBOR Portion(s);

          (iii) If any portion of the Term Loan Borrowing is initially to be a
LIBOR Portion, the initial Interest Period selected by Borrower for each such
LIBOR Portion in accordance with Subparagraph 2.04(b); and

          (iv) If any portion of the Term Loan Borrowing is initially to be a
LIBOR Portion, whether the initial LIBO Rate for such Portion is to be based
upon the Telerate Page Rate or the Reference Bank Rate.

Borrower shall give the Notice of Term Loan Borrowing to Administrative Agent at
least five (5) Business Days before the Revolving Loan Maturity Date. The Notice
of Term Loan Borrowing shall be delivered by first-class mail or facsimile to
Administrative Agent at the office or facsimile number and during the hours
specified in Paragraph 8.01; provided, however, that Borrower shall promptly
deliver to Administrative Agent the original of the Notice of Term Loan
Borrowing if initially delivered by facsimile. Administrative Agent shall
promptly notify each Lender of the contents of the Notice of Term Loan
Borrowing.

          (c) Repayment. Borrower shall repay the principal amount of the Term
Loans in full in a single installment payable on the Term Loan Maturity Date.

          2.04. Interest.

          (a) Interest Rates. Borrower shall pay interest on the unpaid
principal amount of each Loan from the date of such Loan until the Maturity
thereof, at one of the following rates per annum:

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          (i) During such periods as any Revolving Loan is a Base Rate Loan or
any Portion of a Term Loan is a Base Rate Portion, at a rate per annum on such
Loan or Portion equal to the Base Rate plus the Applicable Margin therefor, such
rate to change from time to time as the Applicable Margin or Base Rate shall
change; and

          (ii) During such periods as any Revolving Loan is a LIBOR Loan or any
Portion of a Term Loan is a LIBOR Portion, at a rate per annum on such Loan or
Portion equal at all times during each Interest Period for such Loan or Portion
to the LIBO Rate for such Interest Period plus the Applicable Margin therefor,
such rate to change from time to time during such Interest Period as the
Applicable Margin shall change.

All Revolving Loans in each Revolving Loan Borrowing shall, at any given time
prior to Maturity, bear interest at one, and only one, of the above rates. The
number of Revolving Loan Borrowings consisting of LIBOR Loans shall not exceed
five (5) at any time. Each Base Rate Portion of the Term Loan Borrowing shall be
in a minimum amount of $1,000,000 or an integral multiple of $100,000 in excess
thereof and each LIBOR Portion of the Term Loan Borrowing shall be in a minimum
amount of $2,500,000 or an integral multiple of $500,000 in excess thereof. The
number of LIBOR Portions of the Term Loan Borrowing shall not exceed five (5) at
any time.

          (b) LIBOR Loan and LIBOR Portion Interest Periods. 

          (i) The initial and each subsequent Interest Period selected by
Borrower for a Revolving Loan Borrowing consisting of LIBOR Loans or a LIBOR
Portion of the Term Loan Borrowing shall be one (1), two (2), three (3), six
(6), nine (9) or twelve (12) months; provided, however, that (A) any Interest
Period that would otherwise end on a day which is not a Business Day shall be
extended to the next succeeding Business Day unless such next Business Day falls
in another calendar month, in which case such Interest Period shall end on the
immediately preceding Business Day; (B) any Interest Period that begins on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of a calendar month; and (C) no
Interest Period shall end after the applicable Maturity Date.

          (ii) Borrower shall notify Administrative Agent by an irrevocable
written notice in the form of Exhibit D, appropriately completed (a “Notice of
Interest Period Selection”), at least three (3) Business Days prior to the last
day of each Interest Period for a Revolving Loan Borrowing consisting of LIBOR
Loans or a LIBOR Portion of the Term Loan Borrowing of the Interest Period
selected by Borrower for the next succeeding Interest Period for such LIBOR
Loans or LIBOR Portion and whether the LIBO Rate for such Interest Period is to
be based upon the Telerate Page Rate or the Reference Bank Rate. Each Notice of
Interest Period Selection shall be given by first-class mail or facsimile to the
office or the

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facsimile number and during the hours specified in Paragraph 8.01; provided,
however, that (A) Borrower shall promptly deliver to Administrative Agent the
original of any Notice of Interest Period Selection initially delivered by
facsimile and (B) in the case of any Notice of Interest Period Selection for any
outstanding Revolving Loan Borrowing consisting of LIBOR Loans or any
outstanding LIBOR Portion of the Term Loan Borrowing which is being rolled over
in the same principal amount, Borrower may deliver such Notice of Interest
Period Selection electronically, with a digital signature, to the email address
of Administrative Agent. If Borrower fails to notify Administrative Agent of the
next Interest Period for a Revolving Loan Borrowing consisting of LIBOR Loans or
a LIBOR Portion of the Term Loan Borrowing in accordance with this Subparagraph
2.04(b), such LIBOR Loans or LIBOR Portion shall automatically convert to Base
Rate Loans or a Base Rate Portion, as the case may be, on the last day of the
current Interest Period therefor. If Borrower fails to notify Administrative
Agent whether the LIBO Rate for any Interest Period is to be based upon the
Telerate Page Rate or the Reference Bank Rate, the LIBO Rate for such Interest
Period shall automatically be based upon the Telerate Page Rate.

          (c) Conversion of Term Loan Portions. Borrower may convert any Portion
of the Term Loan Borrowing from one Type of Portion into another Type; provided,
however, that any conversion of a LIBOR Portion into a Base Rate Portion shall
be made on, and only on, the last day of an Interest Period for such LIBOR
Portion. Borrower shall request such a conversion by an irrevocable written
notice to Administrative Agent in the form of Exhibit E, appropriately completed
(a “Notice of Term Loan Conversion”), which specifies, among other things:

          (i) The Portion of the Term Loan Borrowing which is to be converted;

          (ii) The amount and Type of each Portion of the Term Loan Borrowing
into which it is to be converted;

          (iii) If any Portion of the Term Loan Borrowing is to be converted
into a LIBOR Portion, the initial Interest Period selected by Borrower for such
Portion in accordance with Subparagraph 2.04(b);

          (iv) If any Portion of the Term Loan Borrowing is to be converted into
a LIBOR Portion, whether the initial LIBO Rate for such Portion is to be based
upon the Telerate Page Rate or the Reference Bank Rate; and

          (v) The date of the requested conversion, which shall be a Business
Day.

Borrower shall give each Notice of Term Loan Conversion to Administrative Agent
at least three (3) Business Days before the date of the requested conversion.
Each Notice of Term Loan Conversion shall be delivered by first-class mail or
facsimile to Administrative Agent at the office or to the facsimile number and
during the hours

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specified in Paragraph 8.01; provided, however, that (A) Borrower shall promptly
deliver to Administrative Agent the original of any Notice of Term Loan
Conversion initially delivered by facsimile and (B) in the case of any Notice of
Term Loan Conversion for any outstanding Portion of the Term Loan Borrowing
which is being rolled over into another Type of Portion in the same principal
amount, Borrower may deliver such Notice of Term Loan Conversion electronically,
with a digital signature, to the email address of Administrative Agent.
Administrative Agent shall promptly notify each Lender of the contents of each
Notice of Term Loan Conversion.

          (d) Scheduled Interest Payments. Borrower shall pay accrued interest
on the unpaid principal amount of each Loan in arrears (i) in the case of a Base
Rate Loan or Base Rate Portion, on the first day in each January, April, July
and October (commencing October 1, 2000), (ii) in the case of a LIBOR Loan or
LIBOR Portion, on the last day of each Interest Period therefor (and, if any
such Interest Period is longer than three (3) months, every three (3) months);
and (iii) in the case of all Loans, upon prepayment (to the extent thereof) and
at Maturity. 

          2.05. Purpose. Borrower shall use the proceeds of the Revolving Loans
to repurchase shares of its common stock to the extent permitted hereby and for
Borrower’s general corporate purposes. Borrower shall use the proceeds of the
Term Loans solely to repay the Revolving Loans on the Revolving Loan Maturity
Date.

          2.06. Increases in Total Commitment, Commitment Reductions, Etc.

          (a) Increase in Total Commitment. If no Default has occurred and is
continuing, upon the written request of Borrower and with the consent of
Administrative Agent, the Total Commitment may be increased by adding an
additional Lender (a “New Lender”) or increasing the Commitment of an existing
Lender; provided, however, that:

          (i) The Total Commitment shall not be increased above $100,000,000
without the consent of all Lenders;

          (ii) Any New Lender shall satisfy the requirements of an Assignee
Lender and shall execute a joinder instrument substantially in the form of
Exhibit F (a “New Lender Joinder”) and any increase in the Commitment of an
existing Lender shall be evidenced by the written consent of such Lender
substantially in the form of Exhibit G (a “Consent to Increase Commitment”).
Five (5) counterparts of each New Lender Joinder or Consent to Increase
Commitment shall be executed by the New Lender or existing Lender whose
Commitment is being increased and delivered to Administrative Agent for its
acceptance and recording in the Register. Each New Lender Joinder or Consent to
Increase Commitment shall specify the Commitment amount of such New Lender or
existing Lender and the date on which such Commitment of the New Lender or such
increase in the Commitment of an existing Lender becomes effective (a
“Commitment Effective Date”), which date shall be at least five (5) Business
Days after the date counterparts of the New Lender Joinder or Consent to
Increase

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Commitment are delivered to Administrative Agent unless Administrative Agent
shall otherwise consent;

          (iii) Upon receipt of any New Lender Joinder or Consent to Increase
Commitment which is accepted by Administrative Agent for recording,
Administrative Agent will give notice to Borrower and all Lenders (including any
New Lender) of (y) the applicable Commitment Effective Date, and (z) if any
Revolving Loan Borrowing is outstanding on such Commitment Effective Date, the
aggregate amount of all Revolving Loans to be funded by the New Lender or the
existing Lender whose Commitment is being increased on the Commitment Effective
Date. If any Revolving Loan Borrowing is outstanding on a Commitment Effective
Date, the applicable New Lender or existing Lender whose Commitment is being
increased shall before 12:00 noon (San Francisco time) on such Commitment
Effective Date make available to Administrative Agent at Administrative Agent’s
office specified in Paragraph 8.01, in same day or immediately available funds,
such New Lender’s applicable Proportionate Share of such Revolving Loan
Borrowing or the difference between the principal amount of such existing
Lender’s Revolving Loan which is part of such Revolving Loan Borrowing and its
applicable Proportionate Share of such Revolving Loan Borrowing and
Administrative Agent shall disburse such funds to the other Lenders in the
amount necessary so that each Lender’s Revolving Loan which is part of such
Revolving Loan Borrowing is equal to such Lender’s Proportionate Share of such
Revolving Loan Borrowing. If such outstanding Revolving Loan Borrowing consists
of LIBOR Loans, Borrower shall pay to each Lender receiving any prepayment of
such LIBOR Loans on a date other than the last day of an Interest Period for
such LIBOR Loans all amounts payable to such Lender under Paragraph 2.15;

          (iv) Upon the Commitment Effective Date for any New Lender, such New
Lender shall be a Lender hereunder with a Commitment and Loans in the amount set
forth in the notice given by Administrative Agent pursuant to clause (iii) above
and shall have the rights, duties and obligations of such a Lender under this
Agreement and the other Credit Documents. Upon the Commitment Effective Date for
any existing Lender whose Commitment is being increased, such Lender shall be a
Lender with a Commitment and Loans in the amount set forth in the notice given
by Administrative Agent pursuant to clause (iii) above. Each New Lender Joinder
and Consent to Increase Commitment which is accepted and recorded by
Administrative Agent shall be deemed to amend Schedule I to the extent, and only
to the extent, necessary to reflect the addition of each New Lender and its
Commitment, any increase in the Commitment of an existing Lender and the
resulting adjustment of the Proportionate Shares arising from such changes in
the Commitments;

          (v) On or prior to any Commitment Effective Date, Borrower, at its own
expense, shall execute and deliver to Administrative Agent a new Revolving Loan
Note to the order of any New Lender or existing Lender whose Commitment

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is being increased (in exchange for the surrendered Revolving Loan Note, if any,
of such existing Lender) that requests such Revolving Loan Note. Each such
Revolving Loan Note shall be in an amount equal to the Commitment of such New
Lender or existing Lender on such Commitment Effective Date and shall be dated
the date of this Agreement. Any Revolving Loan Note surrendered by an existing
Lender shall be returned by Administrative Agent to Borrower marked “replaced”;
and

          (vi) Each New Lender which is not incorporated in the United States of
America or a state thereof shall, within three (3) Business Days of becoming a
Lender, deliver to Borrower and Administrative Agent two duly completed copies
of United States Internal Revenue Service Form W-8BEN or W-8ECI (or successor
applicable form), as the case may be, certifying in each case that such Lender
is entitled to receive payments under this Agreement without deduction or
withholding of any United States federal income taxes.

          (b) Reduction or Termination of Commitments. Borrower may, upon five
(5) Business Days written notice to Administrative Agent, permanently reduce the
Total Commitment by the amount of Five Million Dollars ($5,000,000) or an
integral multiple thereof or terminate the Total Commitment in its entirety;
provided, however, that:

          (i) Borrower may not reduce the Total Commitment prior to the
Revolving Loan Maturity Date, if, after giving effect to such reduction, the
aggregate principal amount of all Revolving Loans then outstanding would exceed
the Total Commitment; and

          (ii) Borrower may not terminate the Total Commitment prior to the
Revolving Loan Maturity Date, if, after giving effect to such termination, any
Revolving Loan would then remain outstanding.

Unless sooner terminated pursuant to this Agreement, the Commitments shall
terminate on the Revolving Loan Maturity Date.

          (c) Effect of Commitment Increases or Reductions. From the effective
date of any increase or reduction of the Total Commitment, the Commitment Fees
payable pursuant to Subparagraph 2.07(b) shall be computed on the basis of the
Total Commitment as so increased or reduced. Once reduced or cancelled by
Borrower pursuant to Subparagraph 2.06(b), the Total Commitment may not be
increased or reinstated without the prior written consent of all applicable
Lenders. Any reduction of the Total Commitment pursuant to Subparagraph 2.06(b)
shall be applied ratably to reduce each Lender’s Commitment in accordance with
clause (i) of Subparagraph 2.12(a).

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          2.07. Fees.

          (a) Administrative Agent’s Fee. Borrower shall pay to Administrative
Agent, for its own account, agent’s fees and other compensation in the amounts
and at the times set forth in the Administrative Agent’s Fee Letter.

          (b) Commitment Fees. Borrower shall pay to Administrative Agent for
the ratable benefit of the Lenders as provided in clause (iv) of Subparagraph
2.12(a), commitment fees (the “Commitment Fees”) equal to the Commitment Fee
Percentage of the daily average Unused amount of the Total Commitment for the
period beginning on the date of this Agreement and ending on the Revolving Loan
Maturity Date. Borrower shall pay the Commitment Fees in arrears on the first
day in each January, April, July and October (commencing October 1, 2000) and on
the Revolving Loan Maturity Date (or if the Total Commitment is cancelled on a
date prior to the Revolving Loan Maturity, as the case may be, on such prior
date).

          2.08. Prepayments.

          (a) Terms of all Prepayments. Upon the prepayment of any Loan (whether
such prepayment is an optional prepayment under Subparagraph 2.08(b), a
mandatory prepayment required by Subparagraph 2.08(c) or a mandatory prepayment
required by any other provision of this Agreement or the other Credit Documents,
including a prepayment upon acceleration), Borrower shall pay to the Lender that
made such Loan (i) all accrued interest to the date of such prepayment on the
amount prepaid and (ii) if such prepayment is the prepayment of a LIBOR Loan or
of a LIBOR Portion on a day other than the last day of an Interest Period for
such LIBOR Loan or such LIBOR Portion, all amounts payable to such Lender
pursuant to Paragraph 2.15.

          (b) Optional Prepayments. At its option, Borrower may, upon one (1)
Business Day notice to Administrative Agent in the case of Base Rate Loans or
Base Rate Portions or three (3) Business Days notice to Administrative Agent in
the case of LIBOR Loans or LIBOR Portions, prepay the Loans in any Borrowing in
part, in an aggregate principal amount of $2,500,000 or more, or in whole.

          (c) Mandatory Prepayments. If, at any time, the aggregate principal
amount of all Revolving Loans then outstanding exceeds the Total Commitment at
such time, Borrower shall immediately prepay Revolving Loans in an aggregate
principal amount equal to such excess.

          (d) Application of Term Loan Prepayments. All Term Loan prepayments
shall, to the extent possible, be first applied to prepay Base Rate Portions and
then if any funds remain, to prepay LIBOR Portions. 

          2.09. Other Payment Terms.

          (a) Place and Manner. Borrower shall make all payments due to each
Lender or Administrative Agent hereunder by payments to Administrative Agent at

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Administrative Agent’s office located at the address specified in Paragraph
8.01, with each payment due to a Lender to be for the account of such Lender and
such Lender’s Applicable Lending Office. Borrower shall make all payments
hereunder in lawful money of the United States and in same day or immediately
available funds not later than 12:00 noon (San Francisco time) on the date due.
Administrative Agent shall promptly disburse to each Lender each payment
received by Administrative Agent for the account of such Lender.

          (b) Date. Whenever any payment due hereunder shall fall due on a day
other than a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall be included in the computation of
interest or fees, as the case may be.

          (c) Late Payments. If any amount required to be paid by Borrower under
this Agreement or the other Credit Documents (including principal or interest
payable on any Loan, any fee or other amount) remains unpaid after such amount
is due, Borrower shall pay interest on the aggregate, outstanding balance of
such amount from the date due until such amount is paid in full at a per annum
rate equal to the Base Rate plus two percent (2.00%) per annum, such rate to
change from time to time as the Base Rate shall change.

          (d) Application of Payments. All payments hereunder shall be applied
first to unpaid fees, costs and expenses then due and payable under this
Agreement or the other Credit Documents, second to accrued interest then due and
payable under this Agreement or the other Credit Documents and finally to reduce
the principal amount of outstanding Loans.

          (e) Failure to Pay Administrative Agent. Unless Administrative Agent
shall have received notice from Borrower at least one (1) Business Day prior to
the date on which any payment is due to Lenders hereunder that Borrower will not
make such payment in full, Administrative Agent shall be entitled to assume that
Borrower has made or will make such payment in full to Administrative Agent on
such date and Administrative Agent may, in reliance upon such assumption, cause
to be paid to Lenders on such due date an amount equal to the amount then due
such Lenders. If and to the extent Borrower shall not have so made such payment
in full to Administrative Agent, each such Lender shall repay to Administrative
Agent forthwith on demand such portion of the amount distributed to such Lender
as was not received from Borrower together with interest thereon, for each day
from the date such amount is distributed to such Lender until the date such
Lender repays the amount required to be returned to Administrative Agent, at a
per annum rate equal to (i) the Federal Funds Rate for the first three (3) days
and (ii) the rate applicable to Base Rate Loans thereafter. A certificate of
Administrative Agent submitted to any Lender with respect to any amount owing by
such Lender under this Subparagraph 2.09(e) shall constitute prima facie
evidence of such amount.

          2.10. Loan Accounts; Notes.

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          (a) Loan Accounts. The obligation of Borrower to repay the Loans made
to it by each Lender and to pay interest thereon at the rates provided herein
shall be evidenced by an account or accounts maintained by such Lender on its
books (individually, a “Loan Account”), except that any Lender may request that
its Loans be evidenced by a note or notes pursuant to Subparagraph 2.10(b) and
Subparagraph 2.10(c). Each Lender shall record in its Loan Accounts (i) the date
and amount of each Loan made by such Lender, (ii) the interest rates applicable
to each such Loan and each Portion thereof and the effective dates of all
changes thereto, (iii) the Interest Period for each LIBOR Loan and LIBOR
Portion, (iv) the date and amount of each principal and interest payment on each
Loan and Portion and (v) such other information as such Lender may determine is
necessary for the computation of principal and interest payable to it by
Borrower hereunder; provided, however, that any failure by a Lender to make, or
any error by any Lender in making, any such notation shall not affect Borrower’s
Obligations. The Loan Accounts shall constitute prima facie evidence of the
matters noted therein.

          (b) Revolving Loan Notes. If any Lender so requests, such Lender’s
Revolving Loans shall be evidenced by promissory notes in the form of Exhibit H
(individually, a “Revolving Loan Note”) which notes shall be (i) payable to the
order of such Lender, (ii) in the amount of such Lender’s Commitment, (iii)
dated the date of this Agreement and (iv) otherwise appropriately completed.
Borrower authorizes each Lender to record on the schedule annexed to such
Lender’s applicable Revolving Loan Note the date and amount of each Revolving
Loan made by such Lender and of each payment or prepayment of principal thereon
made by Borrower, and agrees that all such notations shall constitute prima
facie evidence of the matters noted; provided, however, that any failure by a
Lender to make, or any error by any Lender in making, any such notation shall
not affect Borrower’s Obligations. Borrower further authorizes each Lender to
attach to and make a part of such Lender’s Revolving Loan Notes continuations of
the schedule attached thereto as necessary.

          (c) Term Loan Notes. If any Lender so requests, such Lender’s Term
Loan shall be evidenced by a promissory note in the form of Exhibit I
(individually, a “Term Loan Note”) which note shall be (i) payable to the order
of such Lender, (ii) in the amount of such Lender’s Term Loan, (iii) dated the
Revolving Loan Maturity Date and (iv) otherwise appropriately completed.

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          2.11. Loan Funding.

          (a) Lender Funding and Disbursement to Borrower. Each Lender shall,
before 12:00 noon (San Francisco time) on the date of each Borrowing, make
available to Administrative Agent at Administrative Agent’s office specified in
Paragraph 8.01, in same day or immediately available funds, such Lender’s
applicable Proportionate Share of such Borrowing. After Administrative Agent’s
receipt of such funds and upon satisfaction of the applicable conditions set
forth in Section III, Administrative Agent shall promptly disburse such funds to
Borrower in same day or immediately available funds. Administrative Agent shall
disburse the proceeds of each Revolving Loan Borrowing by disbursement to the
account or accounts specified in the applicable Notice of Borrowing. The
proceeds of the Term Loan Borrowing shall be applied to repay the Revolving
Loans and shall be disbursed directly to Lenders.

          (b) Lender Failure to Fund. Unless Administrative Agent shall have
received notice from a Lender prior to the date of any Borrowing that such
Lender will not make available to Administrative Agent such Lender’s applicable
Proportionate Share of such Borrowing, Administrative Agent shall be entitled to
assume that such Lender has made or will make such portion available to
Administrative Agent on the date of such Borrowing in accordance with
Subparagraph 2.11(a), and Administrative Agent may on such date, in reliance
upon such assumption, disburse or otherwise credit to Borrower a corresponding
amount. If any Lender does not make the amount of its applicable Proportionate
Share of any Borrowing available to Administrative Agent on or prior to the date
of such Borrowing, such Lender shall pay to Administrative Agent, on demand,
interest which shall accrue on such amount from the date of such Borrowing until
such amount is paid to Administrative Agent at rates equal to (i) the daily
Federal Funds Rate during the period from the date of such Borrowing through the
third Business Day thereafter and (ii) the rate applicable to Base Rate Loans
thereafter. A certificate of Administrative Agent submitted to any Lender with
respect to any amount owing by such Lender under this Subparagraph 2.11(b) shall
constitute prima facie evidence of such amount. If the amount of any Lender’s
applicable Proportionate Share of any Borrowing is not paid to Administrative
Agent by such Lender within three (3) Business Days after the date of such
Borrowing, Borrower shall repay such amount to Administrative Agent, on demand,
together with interest thereon, for each day from the date such amount was
disbursed to Borrower until the date such amount is repaid to Administrative
Agent, at the interest rate applicable at the time to the Loans comprising such
Borrowing.

          (c) Lenders’ Obligations Several. The failure of any Lender to make
the Loan to be made by it as part of any Borrowing shall not relieve any other
Lender of its obligation hereunder to make its Loan as part of such Borrowing,
but no Lender shall be obligated in any way to make any Loan which another
Lender has failed or refused to make or otherwise be in any way responsible for
the failure or refusal of any other Lender to make any Loan required to be made
by such other Lender on the date of any Borrowing.

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          2.12. Pro Rata Treatment.

          (a) Borrowings, Commitment Reductions, Etc. Except as otherwise
provided herein:

          (i) Each Borrowing and reduction of the Total Commitment shall be made
or shared among Lenders pro rata according to their respective Proportionate
Shares;

          (ii) Each payment of principal on Loans in any Borrowing shall be
shared among Lenders pro rata according to the respective unpaid principal
amounts of such Loans then owed to such Lenders;

          (iii) Each payment of interest on Loans in any Borrowing shall be
shared among Lenders pro rata according to (A) the respective unpaid principal
amounts of such Loans made or funded by such Lenders and (B) the dates on which
such Lenders so made or funded such Loans;

          (iv) Each payment of Commitment Fees shall be shared among Lenders
(except for Defaulting Lenders) pro rata according to (A) their respective
Proportionate Shares and (B) in the case of each Lender which becomes a Lender
hereunder after the date hereof, the date upon which such Lender so became a
Lender;

          (v) Each payment of interest (other than interest on Loans) shall be
shared among Lenders and Administrative Agent owed the amount upon which such
interest accrues pro rata according to (A) the respective amounts so owed such
Lenders and Administrative Agent and (B) the dates on which such amounts became
owing to such Lenders and Administrative Agent; and

          (vi) All other payments under this Agreement and the other Credit
Documents shall be for the benefit of the Person or Persons specified.

          (b) Sharing of Payments, Etc. If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of setoff, or
otherwise) on account of Loans owed to it in excess of its ratable share of
payments on account of such Loans obtained by all Lenders entitled to such
payments, such Lender shall forthwith purchase from the other Lenders such
participations in the Loans as shall be necessary to cause such purchasing
Lender to share the excess payment ratably with each of them; provided, however,
that if all or any portion of such excess payment is thereafter recovered from
such purchasing Lender, such purchase shall be rescinded and each other Lender
shall repay to the purchasing Lender the purchase price to the extent of such
recovery together with an amount equal to such other Lender’s ratable share
(according to the proportion of (i) the amount of such other Lender’s required
repayment to (ii) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered. Borrower

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agrees that any Lender so purchasing a participation from another Lender
pursuant to this Subparagraph 2.12(b) may, to the fullest extent permitted by
law, exercise all its rights of payment (including the right of setoff) with
respect to such participation as fully as if such Lender were the direct
creditor of Borrower in the amount of such participation.

          2.13. Change of Circumstances.

          (a) Inability to Determine Rates. If, on or before the first day of
any Interest Period for any LIBOR Loan or LIBOR Portion, (i) any Lender shall
advise Administrative Agent that the LIBO Rate for such Interest Period cannot
be adequately and reasonably determined due to the unavailability of funds in or
other circumstances affecting the London interbank market or (ii) Majority
Lenders shall advise Administrative Agent that the rate of interest for such
Loan or Portion, as the case may be, does not adequately and fairly reflect the
cost to such Lenders of making or maintaining such LIBOR Loan or LIBOR Portion,
Administrative Agent shall immediately give notice of such condition to Borrower
and the other Lenders. After the giving of any such notice and until
Administrative Agent shall otherwise notify Borrower that the circumstances
giving rise to such condition no longer exist, Borrower’s right to request the
making of, conversion to or a new Interest Period for LIBOR Loans or LIBOR
Portions shall be suspended. Any LIBOR Loans or LIBOR Portions outstanding at
the commencement of any such suspension shall be converted at the end of the
then current Interest Period for such LIBOR Loans or LIBOR Portions into Base
Rate Loans or Base Rate Portions, as the case may be, unless such suspension has
then ended.

          (b) Illegality. If, after the date of this Agreement, the adoption of
any Governmental Rule, any change in any Governmental Rule or the application or
requirements thereof (whether such change occurs in accordance with the terms of
such Governmental Rule as enacted, as a result of amendment or otherwise), any
change in the interpretation or administration of any Governmental Rule by any
Governmental Authority, or compliance by any Lender with any request or
directive (whether or not having the force of law) of any Governmental Authority
(a “Change of Law”) shall make it unlawful or impossible for any Lender to make
or maintain any LIBOR Loan or LIBOR Portion, such Lender shall immediately
notify Administrative Agent and Borrower of such Change of Law. Upon receipt of
such notice, (i) Borrower’s right to request the making of, conversion to or a
new Interest Period for LIBOR Loans or LIBOR Portions shall be terminated, and
Borrower shall, at the request of such Lender, (A) repay any outstanding LIBOR
Loans or convert any outstanding LIBOR Portions into Base Rate Loans at the end
of the current Interest Period for such LIBOR Loans or LIBOR Portions or (B)
immediately repay or convert any such LIBOR Loans or LIBOR Portions if such
Lender shall notify Borrower that such Lender may not lawfully continue to fund
and maintain such LIBOR Loans or LIBOR Portions. Any conversion or prepayment of
LIBOR Loans or LIBOR Portions made pursuant to the preceding sentence prior to
the last day of an Interest Period for such LIBOR Loans or LIBOR Portions shall
be deemed a prepayment thereof for purposes of Paragraph 2.15. After any Lender
notifies Administrative Agent and Borrower of such a Change of Law and until
such Lender notifies Administrative Agent and Borrower that it is no longer
unlawful or impossible

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for such Lender to make or maintain a LIBOR Loan or LIBOR Portion, all Revolving
Loans and all Portions of the Term Loan of such Lender shall be Base Rate Loans
and Base Rate Portions, respectively.

          (c) Increased Costs. If, after the date of this Agreement, any Change
of Law:

           (i) Shall subject any Lender to any tax, duty or other charge with
respect to any LIBOR Loan or LIBOR Portion, or shall change the basis of
taxation of payments by Borrower to any Lender on such a LIBOR Loan or LIBOR
Portion or in respect to such a LIBOR Loan or LIBOR Portion under this Agreement
(except for changes in the rate of taxation on the overall net income of any
Lender imposed by its jurisdiction of incorporation or the jurisdiction in which
its principal executive office is located); or

          (ii) Shall impose, modify or hold applicable any reserve (excluding
any Reserve Requirement or other reserve to the extent included in the
calculation of the LIBO Rate for any Loans or Portions), special deposit or
similar requirement against assets held by, deposits or other liabilities in or
for the account of, advances or loans by, or any other acquisition of funds by
any Lender for any LIBOR Loan or LIBOR Portion; or

          (iii) Shall impose on any Lender any other condition related to any
LIBOR Loan or LIBOR Portion or such Lender’s Commitments;

And the effect of any of the foregoing is to increase the cost to such Lender of
making, renewing, or maintaining any such LIBOR Loan or LIBOR Portion or its
Commitments or to reduce any amount receivable by such Lender hereunder; then
Borrower shall from time to time, within five (5) Business Days after demand by
such Lender, pay to such Lender additional amounts sufficient to reimburse such
Lender for such increased costs or to compensate such Lender for such reduced
amounts; provided, however, that Borrower shall have no obligation to make any
payment to any demanding party under this Subparagraph 2.13(c) on account of any
such increased costs or reduced amounts unless Borrower receives notice of such
increased costs or reduced amounts from the demanding party within six (6)
months after they are incurred or realized. A certificate setting forth in
reasonable detail the amount of such increased costs or reduced amounts,
submitted by such Lender to Borrower shall constitute prima facie evidence of
such costs or amounts. The obligations of Borrower under this Subparagraph
2.13(c) shall survive the payment and performance of the Obligations and the
termination of this Agreement.

          (d) Capital Requirements. If, after the date of this Agreement, any
Lender determines that (i) any Change of Law affects the amount of capital
required or expected to be maintained by such Lender or any Person controlling
such Lender (a “Capital Adequacy Requirement”) and (ii) the amount of capital
maintained by such Lender or such Person which is attributable to or based upon
the Loans, the Commitments or this Agreement must be increased as a result of
such Capital Adequacy Requirement (taking into account such Lender’s or such
Person’s policies with respect to capital adequacy),

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Borrower shall pay to such Lender or such Person, within five (5) Business Days
after demand of such Lender, such amounts as such Lender or such Person shall
determine are necessary to compensate such Lender or such Person for the
increased costs to such Lender or such Person of such increased capital;
provided, however, that Borrower shall have no obligation to make any payment to
any demanding party under this Subparagraph 2.13(d) on account of any such
increased costs unless Borrower receives notice of such increased costs from the
demanding party within six (6) months after they are incurred or realized. A
certificate setting forth in reasonable detail the amount of such increased
costs, submitted by any Lender to Borrower shall constitute prima facie evidence
of such costs. The obligations of Borrower under this Subparagraph 2.13(d) shall
survive the payment and performance of the Obligations and the termination of
this Agreement.

          (e) Mitigation. Any Lender which becomes aware of (i) any Change of
Law which will make it unlawful or impossible for such Lender to make or
maintain any LIBOR Loan or LIBOR Portion or (ii) any Change of Law or other
event or condition which will obligate Borrower to pay any amount pursuant to
Subparagraph 2.13(c) or Subparagraph 2.13(d) shall notify Borrower and
Administrative Agent thereof as promptly as practical. If any Lender has given
notice of any such Change of Law or other event or condition and thereafter
becomes aware that such Change of Law or other event or condition has ceased to
exist, such Lender shall notify Borrower and Administrative Agent thereof as
promptly as practical. Each Lender affected by any Change of Law which makes it
unlawful or impossible for such Lender to make or maintain any LIBOR Loan or
LIBOR Portion or to which Borrower is obligated to pay any amount pursuant to
Subparagraph 2.13(c) or Subparagraph 2.13(d) shall use reasonable commercial
efforts (including changing the jurisdiction of its Applicable Lending Office)
to avoid the effect of such Change of Law or to avoid or materially reduce any
amounts which Borrower is obligated to pay pursuant to Subparagraph 2.13(c) or
Subparagraph 2.13(d) if, in the reasonable opinion of such Lender, such efforts
would not be disadvantageous to such Lender or contrary to such Lender’s normal
banking practices.

          2.14. Taxes on Payments.

          (a) Payments Free of Taxes. All payments made by Borrower under this
Agreement and the other Credit Documents shall be made free and clear of, and
without deduction or withholding for or on account of, any present or future
income, stamp, documentary or other taxes, any duties, or any other levies,
imposts, charges, fees, deductions or withholdings, now or hereafter imposed,
levied, collected, withheld or assessed by any Governmental Authority (except
net income taxes and franchise taxes in lieu of net income taxes imposed on
Administrative Agent or any Lender by its jurisdiction of incorporation or the
jurisdiction in which its Applicable Lending Office is located) (all such
non-excluded taxes, duties, levies, imposts, charges, fees, deductions and
withholdings being hereinafter called “Taxes”). If any Taxes are required to be
withheld from any amounts payable to Administrative Agent or any Lender
hereunder or under the other Credit Documents, the amounts so payable to
Administrative Agent or such Lender shall be increased to the extent necessary
to yield to Administrative Agent or such Lender (after payment of all Taxes)
interest or any such other amounts payable

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hereunder at the rates or in the amounts specified in this Agreement and the
other Credit Documents. Whenever any Taxes are payable by Borrower, as promptly
as possible thereafter, Borrower shall send to Administrative Agent for its own
account or for the account of such Lender, as the case may be, a certified copy
of an original official receipt received by Borrower showing payment thereof. If
Borrower fails to pay any Taxes when due to the appropriate taxing authority or
fails to remit to Administrative Agent the required receipts or other required
documentary evidence, Borrower shall indemnify Administrative Agent and Lenders
for any taxes, interest or penalties that may become payable by Administrative
Agent or any Lender as a result of any such failure. The obligations of Borrower
under this Subparagraph 2.14(a) shall survive the payment and performance of the
Obligations and the termination of this Agreement.

          (b) Withholding Exemption Certificates. On or prior to the date of the
initial Borrowing or, if such date does not occur within thirty (30) days after
the date of this Agreement, by the end of such 30-day period, each Lender which
is not organized under the laws of the United States of America or a state
thereof shall deliver to Borrower and Administrative Agent two duly completed
copies of United States Internal Revenue Service Form W-8BEN or W-8ECI (or
successor applicable form), as the case may be, certifying in each case that
such Lender is entitled to receive payments under this Agreement without
deduction or withholding or with reduced deduction or withholding of any United
States federal income taxes. Each such Lender further agrees (i) promptly to
notify Borrower and Administrative Agent of any change of circumstances
(including any change in any treaty, law or regulation) which would prevent such
Lender from receiving payments hereunder without any deduction or withholding or
with reduced deduction or withholding of such taxes as indicated on the most
recent such certificate or other form previously delivered by such Lender and
(ii) if such Lender has not so notified Borrower and Administrative Agent of any
change of circumstances which would prevent such Lender from receiving payments
hereunder without any deduction or withholding or with reduced deduction or
withholding of taxes as indicated on the most recent such certificate or other
form previously delivered by such Lender, then on or before the date that any
certificate or other form delivered by such Lender under this Subparagraph
2.14(b) expires or becomes obsolete or after the occurrence of any event
requiring a change in the most recent such certificate or form previously
delivered by such Lender, to deliver to Borrower and Administrative Agent a new
certificate or form, certifying that such Lender is entitled to receive payments
under this Agreement without deduction or withholding or with reduced deduction
or withholding of such taxes. If any Lender fails to provide to Borrower or
Administrative Agent pursuant to this Subparagraph 2.14(b) (or, in the case of a
New Lender, Subparagraph 2.06(a), or, in the case of an Assignee Lender,
Subparagraph 8.05(c)) any certificates or other evidence required by such
provision to establish that such Lender is, at the time it becomes a Lender
hereunder, entitled to receive payments under this Agreement without deduction
or withholding or with reduced deduction or withholding of any United States
federal income taxes, such Lender shall not be entitled to any indemnification
under Subparagraph 2.14(a) for any Taxes imposed on such Lender primarily as a
result of such failure.

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          (c) Mitigation. If Administrative Agent or any Lender claims any
additional amounts to be payable to it pursuant to this Paragraph 2.14, such
Person shall use reasonable commercial efforts to file any certificate or
document requested in writing by Borrower (including copies of Internal Revenue
Service Form W-8BEN (or successor forms) reflecting a reduced rate of
withholding or to change the jurisdiction of its Applicable Lending Office if
the making of such a filing or such change in the jurisdiction of its Applicable
Lending Office would avoid the need for or materially reduce the amount of any
such additional amounts which may thereafter accrue and if, in the reasonable
opinion of such Person, in the case of a change in the jurisdiction of its
Applicable Lending Office, such change would not be disadvantageous to such
Person or contrary to such Person’s normal banking practices.

          (d) Tax Returns. Nothing contained in this Paragraph 2.14 shall
require Administrative Agent or any Lender to make available any of its tax
returns (or any other information relating to its taxes which it deems to be
confidential).

          2.15. Funding Loss Indemnification. If Borrower shall (a) repay,
prepay or convert any LIBOR Loan or LIBOR Portion on any day other than the last
day of an Interest Period therefor (whether a scheduled payment, an optional
prepayment or conversion, a mandatory prepayment or conversion, a payment upon
acceleration or otherwise), (b) fail to borrow any LIBOR Loan or LIBOR Portion
for which a Notice of Borrowing has been delivered to Administrative Agent
(whether as a result of the failure to satisfy any applicable conditions or
otherwise) or (c) fail to convert any Portion of the Term Loan Borrowing into a
LIBOR Portion in accordance with a Notice of Term Loan Conversion delivered to
Administrative Agent (whether as a result of the failure to satisfy any
applicable conditions or otherwise), Borrower shall, within five (5) Business
Days after demand by any Lender, reimburse such Lender for and hold such Lender
harmless from all costs and losses incurred by such Lender as a result of such
repayment, prepayment, conversion or failure; provided, however, that Borrower
shall have no obligation to make any payment to any demanding party under this
Paragraph 2.15 on account of any such costs or losses unless Borrower receives
notice of such costs or losses from the demanding party within six (6) months
after they are incurred or realized. Borrower understands that such costs and
losses may include, without limitation, losses incurred by a Lender as a result
of funding and other contracts entered into by such Lender to fund a LIBOR Loan
or LIBOR Portion. Each Lender demanding payment under this Paragraph 2.15 shall
deliver to Borrower, with a copy to Administrative Agent, a certificate setting
forth the amount of costs and losses for which demand is made, which certificate
shall set forth in reasonable detail the calculation of the amount demanded.
Such a certificate so delivered to Borrower shall constitute prima facie
evidence of such costs and losses. The obligations of Borrower under this
Paragraph 2.15 shall survive the payment and performance of the Obligations and
the termination of this Agreement.

          2.16. Replacement of Lenders. If any Lender shall (a) become a
Defaulting Lender more than one (1) time in a period of twelve (12) consecutive
months, (b) continue as a Defaulting Lender for more than five (5) Business Days
at any time, (c) not consent to an Extension Request given pursuant to
Subparagraph 2.02(a), (d) suspend its obligation to make or maintain LIBOR Loans
or LIBOR Portions pursuant to Subparagraph 2.13(b) for a reason which is not
applicable to any other Lender or (e) demand any payment under Subparagraph
2.13(c),

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2.13(d) or 2.14(a) for a reason which is not applicable to any other Lender,
then Administrative Agent may, with the written consent of Borrower, or shall,
upon the written request of Borrower, replace such Lender (the “affected
Lender”), or cause such affected Lender to be replaced with another lender (the
“replacement Lender”) satisfying the requirements of an Assignee Lender, by
having the affected Lender sell and assign all of its rights and obligations
under this Agreement and the other Credit Documents to the replacement Lender
pursuant to Subparagraph 8.05(c); provided, however, that if Borrower seeks to
exercise such right, it must do so within sixty (60) days after it first knows
or should have known of the occurrence of the event or events giving rise to
such right, and neither Administrative Agent nor any Lender shall have any
obligation to identify or locate a replacement Lender for Borrower. Upon receipt
by any affected Lender of a written notice from Administrative Agent stating
that Administrative Agent is exercising the replacement right set forth in this
Paragraph 2.16, such affected Lender shall sell and assign all of its rights and
obligations under this Agreement and the other Credit Documents to the
replacement Lender pursuant to an Assignment Agreement and Subparagraph 8.05(c)
for a purchase price equal to the sum of the principal amount of the affected
Lender’s Loans so sold and assigned, all accrued and unpaid interest thereon and
its ratable share of all fees to which it is entitled.

SECTION III.      CONDITIONS PRECEDENT.

          3.01. Initial Conditions Precedent. The obligations of Lenders to make
the Loans are subject to receipt by Administrative Agent, not more than thirty
(30) days after the date of this Agreement (the “Document Delivery Date”), of
each item listed in Schedule 3.01, each in form and substance satisfactory to
Administrative Agent and each Lender, and with sufficient copies for,
Administrative Agent and each Lender.

          3.02. Conditions Precedent to Term Loan Borrowing. The obligations of
Lenders to make the Term Loans comprising the Term Loan Borrowing also are
subject to receipt by Administrative Agent, on or prior to the Revolving Loan
Maturity Date, of a Term Loan Note for each Lender so requesting such a note,
duly executed by Borrower.

          3.03. Conditions Precedent to Each Credit Event.

          (a) The occurrence of each Credit Event (including the initial
Borrowing and the Term Loan Borrowing) is subject to the further condition that
Borrower shall have delivered to Administrative Agent the Notice of Borrowing,
Notice of Term Loan Conversion or Notice of Interest Period Selection, as the
case may be, for such Credit Event in accordance with this Agreement.

          (b) On the date each Borrowing is to occur and after giving effect to
such Borrowing, the following shall be true and correct:

          (i) The representations and warranties of Borrower set forth in
Paragraph 4.01 and in the other Credit Documents are true and correct in all
material respects as if made on such date (except for representations and

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warranties expressly made as of a specified date, which shall be true as of such
date); and

          (ii) No Default has occurred and is continuing or will result from
such Borrowing.

The submission by Borrower to Administrative Agent of each Notice of Borrowing
(other than a Notice of Borrowing for a Revolving Loan Borrowing consisting of
Base Rate Loans to be used solely to repay an existing Borrowing) shall be
deemed to be a representation and warranty by Borrower that each of the
statements set forth above in this Subparagraph 3.03(b) is true and correct as
of the date of such notice.

          3.04. Covenant to Deliver. Borrower agrees (not as a condition but as
a covenant) to deliver to Administrative Agent each item required to be
delivered to Administrative Agent as a condition to the occurrence of any Credit
Event if such Credit Event occurs. Borrower expressly agrees that the occurrence
of any such Credit Event prior to the receipt by Administrative Agent of any
such item shall not constitute a waiver by Administrative Agent or any Lender of
Borrower’s obligation to deliver such item.

SECTION IV.      REPRESENTATIONS AND WARRANTIES.

          4.01. Borrower’s Representations and Warranties. In order to induce
Administrative Agent and Lenders to enter into this Agreement, Borrower hereby
represents and warrants to Administrative Agent and Lenders as follows:

          (a) Due Incorporation, Qualification, etc. Each of Borrower and
Borrower’s Material Subsidiaries (i) is a corporation duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization; (ii) has the power and authority to own, lease and operate its
properties and carry on its business as now conducted; and (iii) is duly
qualified, licensed to do business and in good standing as a foreign corporation
in each jurisdiction where the failure to be so qualified or licensed is
reasonably likely to have a Material Adverse Effect.

          (b) Authority. The execution, delivery and performance by Borrower of
each Credit Document executed, or to be executed, by Borrower and the
consummation of the transactions contemplated thereby (i) are within the power
of Borrower and (ii) have been duly authorized by all necessary actions on the
part of Borrower.

          (c) Enforceability. Each Credit Document executed, or to be executed,
by Borrower has been, or will be, duly executed and delivered by Borrower and
constitutes, or will constitute, a legal, valid and binding obligation of
Borrower, enforceable against Borrower in accordance with its terms, except as
limited by bankruptcy, insolvency or other laws of general application relating
to or affecting the enforcement of creditors’ rights generally and general
principles of equity.

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          (d) Non-Contravention. The execution and delivery by Borrower of the
Credit Documents executed by Borrower and the performance and consummation of
the transactions contemplated thereby do not (i) violate any Requirement of Law
applicable to Borrower; (ii) violate any provision of, or result in the breach
or the acceleration of, or entitle any other Person to accelerate (whether after
the giving of notice or lapse of time or both), any Contractual Obligation of
Borrower required by Regulation S-K to be made part of Borrower’s public
filings; or (iii) result in the creation or imposition of any Lien (or the
obligation to create or impose any Lien) upon any property, asset or revenue of
Borrower (except such Liens as may be created in favor of Administrative Agent
pursuant to this Agreement or the other Credit Documents).

          (e) Approvals. No consent, approval, order or authorization of, or
registration, declaration or filing with, any Governmental Authority is required
in connection with the execution and delivery of the Credit Documents executed
by Borrower or the performance or consummation of the transactions contemplated
thereby, except for those which have been made or obtained and are in full force
and effect.

          (f) No Violation or Default. Neither Borrower nor any of its
Subsidiaries is in violation of or in default with respect to (i) any
Requirement of Law applicable to such Person or (ii) any Contractual Obligation
of such Person (nor is there any waiver in effect which, if not in effect, would
result in such a violation or default), where, in each case, such violation or
default is reasonably likely to have a Material Adverse Effect. Without limiting
the generality of the foregoing, neither Borrower nor any of its Subsidiaries
(A) has violated any Environmental Laws, (B) has any liability under any
Environmental Laws or (C) has received notice or other communication of an
investigation or is under investigation by any Governmental Authority having
authority to enforce Environmental Laws, where such violation, liability or
investigation is reasonably likely to have a Material Adverse Effect. No Default
has occurred and is continuing.

          (g) Litigation. Except as disclosed in the 10-Q report filed by
Borrower with the Securities and Exchange Commission for the fiscal quarter
ended June 4, 1999, no actions (including derivative actions), suits,
proceedings or investigations are pending or, to the knowledge of Borrower,
threatened against Borrower or any of its Subsidiaries at law or in equity in
any court or before any other Governmental Authority which (i) is reasonably
likely (alone or in the aggregate) to have a Material Adverse Effect or (ii)
seeks to enjoin, either directly or indirectly, the execution, delivery or
performance by Borrower of the Credit Documents or the transactions contemplated
thereby.

          (h) Title; Possession Under Leases. Borrower and its Material
Subsidiaries own and have good and marketable title, or a valid leasehold
interest in, or licenses with respect to, all their respective properties and
assets as reflected in the most recent Financial Statements delivered to
Administrative Agent (except those assets and properties disposed of in the
ordinary course of business or otherwise in compliance with this Agreement since
the date of such Financial Statements) and all respective assets and properties
acquired by Borrower and its Material Subsidiaries since such date (except those
disposed of in the ordinary course of business or otherwise in compliance with
this

 

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Agreement). Such assets and properties are subject to no Lien, except for
Permitted Liens. Each of Borrower and its Material Subsidiaries has complied
with all material obligations under all material leases to which it is a party
and enjoys peaceful and undisturbed possession under such leases subject only to
rights of sublessees of Borrower or its Material Subsidiaries.

          (i) Financial Statements. The Financial Statements of Borrower and its
Subsidiaries which have been delivered to Administrative Agent, (i) are in
accordance with the books and records of Borrower and its Subsidiaries, which
have been maintained in accordance with good business practice; (ii) have been
prepared in conformity with GAAP; and (iii) fairly present in all material
respects the financial conditions and results of operations of Borrower and its
Subsidiaries as of the date thereof and for the period covered thereby. Neither
Borrower nor any of its Subsidiaries has any Contingent Obligations, liability
for taxes or other outstanding obligations which are material in the aggregate,
except as disclosed in the audited Financial Statements dated December 3, 1999,
or unaudited Financial Statements for the fiscal quarter ended June 2, 2000,
furnished by Borrower to Administrative Agent prior to the date hereof, or in
the Financial Statements delivered to Administrative Agent pursuant to clause
(i) or (ii) of Subparagraph 5.01(a).

          (j) Equity Securities. All Equity Securities of Borrower have been
offered and sold in compliance with all federal and state securities laws and
all other Requirements of Law, except where any failure to comply is not
reasonably likely to have a Material Adverse Effect.

          (k) No Agreements to Sell Assets; Etc. Neither Borrower nor any of its
Subsidiaries has any legal obligation, absolute or contingent, to any Person to
sell the assets of Borrower or any of its Subsidiaries (except as permitted by
Subparagraph 5.02(c)), or to effect any merger, consolidation or other
reorganization of Borrower or any of its Subsidiaries (except as permitted by
Subparagraph 5.02(d)) or to enter into any agreement with respect thereto.

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          (l) Employee Benefit Plans.

          (i) Based upon the latest valuation of each Employee Benefit Plan that
either Borrower or any ERISA Affiliate maintains or contributes to, or has any
obligation under (which occurred within twelve months of the date of this
representation), the aggregate benefit liabilities of such plan within the
meaning of § 4001 of ERISA did not exceed the aggregate value of the assets of
such plan. Neither Borrower nor any ERISA Affiliate has any liability with
respect to any post-retirement benefit under any Employee Benefit Plan which is
a welfare plan (as defined in section 3(1) of ERISA), other than liability for
health plan continuation coverage described in Part 6 of Title I(B) of ERISA,
which liability for health plan contribution coverage is not reasonably likely
to have a Material Adverse Effect.

          (ii) Each Employee Benefit Plan complies, in both form and operation,
in all material respects, with its terms, ERISA and the IRC, and no condition
exists or event has occurred with respect to any such plan which would result in
the incurrence by either Borrower or any ERISA Affiliate of any material
liability, fine or penalty. Each Employee Benefit Plan, related trust agreement,
arrangement and commitment of Borrower or any ERISA Affiliate is legally valid
and binding and in full force and effect. No Employee Benefit Plan is being
audited or investigated by any government agency or is subject to any pending or
threatened claim or suit. Neither Borrower nor any ERISA Affiliate nor any
fiduciary of any Employee Benefit Plan has engaged in a prohibited transaction
under section 406 of ERISA or section 4975 of the IRC.

          (iii) Neither Borrower nor any ERISA Affiliate contributes to or has
any material contingent obligations to any Multiemployer Plan. Neither Borrower
nor any ERISA Affiliate has incurred any material liability (including secondary
liability) to any Multiemployer Plan as a result of a complete or partial
withdrawal from such Multiemployer Plan under Section 4201 of ERISA or as a
result of a sale of assets described in Section 4204 of ERISA. Neither Borrower
nor any ERISA Affiliate has been notified that any Multiemployer Plan is in
reorganization or insolvent under and within the meaning of Section 4241 or
Section 4245 of ERISA or that any Multiemployer Plan intends to terminate or has
been terminated under Section 4041A of ERISA.

          (m) Other Regulations. Borrower is not subject to regulation under the
Investment Company Act of 1940, the Public Utility Holding Company Act of 1935,
the Federal Power Act, the Interstate Commerce Act, any state public utilities
code or to any other Governmental Rule limiting its ability to incur
indebtedness.

          (n) Patent and Other Rights. Except as disclosed in the 10-Q report
filed by Borrower with the Securities and Exchange Commission for the fiscal
quarter ended June 4, 1999, Borrower and its Material Subsidiaries own, license
or otherwise have the full right to use, under validly existing agreements, all
material patents, licenses, trademarks,

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trade names, trade secrets, service marks, copyrights and all rights with
respect thereto, which are required to conduct their businesses as now
conducted.

          (o) Governmental Charges. Borrower and its Subsidiaries have filed or
caused to be filed all tax returns or requests for extension which are required
to be filed by them. Borrower and its Subsidiaries have paid, or made provision
for the payment of, all taxes and other Governmental Charges which have or may
have become due pursuant to said returns or otherwise and all other
indebtedness, except such Governmental Charges or indebtedness, if any, which
are being contested in good faith and as to which adequate reserves (determined
in accordance with GAAP) have been provided or which are not reasonably likely
to have a Material Adverse Effect if unpaid.

          (p) Margin Stock. Borrower owns no Margin Stock which, in the
aggregate, would constitute a substantial part of the assets of Borrower, and no
proceeds of any Loan will be used to purchase or carry, directly or indirectly,
any Margin Stock or to extend credit, directly or indirectly, to any Person for
the purpose of purchasing or carrying any Margin Stock.

          (q) Subsidiaries, Etc. Schedule 4.01(q) (as supplemented by Borrower
from time to time in a written notice to Administrative Agent pursuant to
Subparagraph 5.01(a)(iii)) sets forth each of Borrower’s Subsidiaries, its
jurisdiction of organization, the classes of its Equity Securities and the
percentages of shares of each such class owned directly or indirectly by
Borrower.

          (r) Solvency, Etc. Borrower is Solvent and, after the execution and
delivery of the Credit Documents and the consummation of the transactions
contemplated thereby, will be Solvent.

          (s) Catastrophic Events. Neither Borrower nor any of its Subsidiaries
and none of their properties is or has been affected by any fire, explosion,
accident, strike, lockout or other labor dispute, drought, storm, hail,
earthquake, embargo, act of God or other casualty that is reasonably likely to
have a Material Adverse Effect. There are no disputes presently subject to
grievance procedure, arbitration or litigation under any of the collective
bargaining agreements, employment contracts or employee welfare or incentive
plans to which Borrower or any of its Subsidiaries is a party, and there are no
strikes, lockouts, work stoppages or slowdowns, or, to the best knowledge of
Borrower, jurisdictional disputes or organizing activities occurring or
threatened which alone or in the aggregate are reasonably likely to have a
Material Adverse Effect.

          (t) No Material Adverse Effect. No event has occurred and no condition
exists which is reasonably likely to have a Material Adverse Effect.

          (u) Year 2000 Compatibility. The 10-Q report filed by Borrower with
the Securities and Exchange Commission for the fiscal quarter ended June 4,
1999, describes the actions which Borrower and its Subsidiaries have taken, are
planning to take or are taking to address the “Year 2000 Problem” (that is, the
risk that computer applications

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used by Borrower and its Subsidiaries may be unable to recognize and perform
properly date-sensitive functions involving certain dates prior to and any date
on or after December 31, 1999). Based upon the matters described in such report,
Borrower believes that the “Year 2000 Problem” will not have a Material Adverse
Effect.

          (v) Accuracy of Information Furnished. The Credit Documents and the
other certificates and written statements and information (excluding projections
and analyst reports) prepared by and furnished by Borrower and its Subsidiaries
to Administrative Agent and the Lenders in connection with the Credit Documents
and the transactions contemplated thereby, taken as a whole, do not contain any
untrue statement of a material fact and do not omit to state any material fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. All projections furnished by Borrower and
its Subsidiaries to Administrative Agent and the Lenders in connection with the
Credit Documents and the transactions contemplated thereby have been based upon
reasonable assumptions and represent, as of their respective dates of
presentations, Borrower’s and its Subsidiaries’ reasonable estimates of the
future performance of Borrower and its Subsidiaries.

          4.02. Reaffirmation. Borrower shall be deemed to have reaffirmed, for
the benefit of Lenders and Administrative Agent, each representation and
warranty contained in Paragraph 4.01 on and as of the date of each Borrowing
(except for representations and warranties expressly made as of a specified
date, which shall be true as of such date).

SECTION V.      COVENANTS.

          5.01. Affirmative Covenants. Until the termination of this Agreement
and the satisfaction in full by Borrower of all Obligations, Borrower will
comply, and will cause compliance, with the following affirmative covenants,
unless Required Lenders shall otherwise consent in writing:

          (a) Financial Statements, Reports, etc. Borrower shall furnish to
Administrative Agent, with sufficient copies for each Lender, the following,
each in such form and such detail as Administrative Agent or the Required
Lenders shall reasonably request:

          (i) As soon as available and in no event later than forty-five (45)
days after the last day of each fiscal quarter of Borrower, a copy of the
Financial Statements of Borrower and its Subsidiaries (prepared on a
consolidated basis) for such quarter and for the fiscal year to date, certified
by the chief executive officer or chief financial officer of Borrower to present
fairly in all material respects the financial condition, results of operations
and other information reflected therein and to have been prepared in accordance
with GAAP (subject to normal year-end audit adjustments);

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          (ii) As soon as available and in no event later than ninety (90) days
after the close of each fiscal year of Borrower, (A) copies of the audited
Financial Statements of Borrower and its Subsidiaries (prepared on a
consolidated basis) for such year, audited by KPMG LLP or other independent
certified public accountants of recognized national standing acceptable to
Administrative Agent, and (B) copies of the unqualified opinions (or qualified
opinions reasonably acceptable to Administrative Agent) and, to the extent
delivered and within ten (10) days after delivery, final management letters
delivered by such accountants to the Audit Committee of the Board of Directors
in connection with all such Financial Statements;

          (iii) Contemporaneously with the quarterly and year-end Financial
Statements required by the foregoing clauses (i) and (ii), a compliance
certificate of the chief executive officer, chief financial officer or treasurer
of Borrower (a “Compliance Certificate”) which (A) states that the
representations and warranties of Borrower set forth in Paragraph 4.01 and in
the other Credit Documents are true and correct in all material respects as if
made on such date (except for representations and warranties expressly made as
of a specified date, which shall be true as of such date) and no Default has
occurred and is continuing, or, if any such Default has occurred and is
continuing, a statement as to the nature thereof and what action Borrower
proposes to take with respect thereto; (B) sets forth, for the quarter, year or
other applicable period covered by such Financial Statements or as of the last
day of such quarter or year (as the case may be), the calculation of the
financial ratios and tests provided in Subparagraph 5.02(f) and Paragraph 5.03;
(C) upon Administrative Agent’s request, attaches copies of any letters being
provided routinely to requesting vendors or customers at such time describing
the Year 2000 remediation efforts of Borrower and its Subsidiaries and (D) lists
all Subsidiaries of Borrower and identifies each such Subsidiary which is a
Material Subsidiary;

          (iv) As soon as available and in no event later than forty-five (45)
days after the last day of each fiscal quarter of Borrower, a certificate of the
chief financial officer or treasurer of Borrower which sets forth the
calculation of Borrower’s Debt/EBITDA Ratio for the consecutive four-quarter
period ending as of such date;

          (v) As soon as possible and in no event later than five (5) Business
Days after any officer of Borrower knows of the occurrence or existence of (A)
any Reportable Event under any Employee Benefit Plan or Multiemployer Plan; (B)
any actual litigation, suits or claims against Borrower or any of its
Subsidiaries which individually asserts a claim for monetary damages payable by
Borrower or its Subsidiaries of $10,000,000 or more; (C) any other event or
condition which is reasonably likely to have a Material Adverse Effect; or (D)
any Default; the statement of the chief executive officer, chief financial
officer or treasurer of Borrower setting forth details of such event, condition
or Default and the action which Borrower proposes to take with respect thereto;

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          (vi) As soon as available and in no event later than five (5) Business
Days after they are sent, made available or filed, copies of (A) all
registration statements and reports filed by Borrower or any of its Subsidiaries
with any securities exchange or the United States Securities and Exchange
Commission (including, without limitation, all 10-Q, 10-K and 8-K reports); (B)
all reports, proxy statements and financial statements sent or made available by
Borrower to its security holders; and (C) all press releases concerning any
material developments in the business of Borrower made available by Borrower to
the public generally; and

          (vii) Such other instruments, agreements, certificates, opinions,
statements, documents and information relating to the operations or condition
(financial or otherwise) of Borrower or its Subsidiaries, and compliance by
Borrower with the terms of this Agreement and the other Credit Documents as
Administrative Agent may from time to time reasonably request.

          (b) Books and Records. Borrower and its Subsidiaries shall at all
times keep proper books of record and account in which full, true and correct
entries will be made of their transactions in accordance with GAAP.

          (c) Inspections. Borrower and its Subsidiaries shall permit
Administrative Agent and each Lender, or any agent or representative thereof,
upon reasonable notice and during normal business hours and to the extent
reasonably necessary for the administration of the Obligations, to visit and
inspect any of the properties and offices of Borrower and its Material
Subsidiaries, to examine the books and records of Borrower and its Subsidiaries
and make copies thereof, and to discuss the affairs, finances and business of
Borrower and its Subsidiaries with, and to be advised as to the same by, their
officers and, after prior written notice to Borrower, their auditors and
accountants, all at such times and intervals as Administrative Agent or any
Lender may reasonably request; provided, however, (i) unless an Event of Default
shall have occurred and be continuing, any such visit and inspection shall be
made at the sole expense of Administrative Agent or the Lender whose agent or
representative is making such visit and inspection and (ii) when an Event of
Default exists, any such visit and inspection shall be made at the sole expense
of Borrower.

          (d) Insurance. Borrower and its Material Subsidiaries shall:

          (i) Carry and maintain insurance of the types and in the amounts
customarily carried from time to time during the term of this Agreement by
others engaged in substantially the same business as such Person and operating
in the same geographic area as such Person, including, but not limited to, fire,
public liability, property damage and worker’s compensation;

          (ii) Carry and maintain each policy for such insurance with (A) a
company which is rated A or better by A.M. Best and Company at the time such

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policy is placed and at the time of each annual renewal thereof or (B) any other
insurer which is reasonably satisfactory to Administrative Agent; and

          (iii) Deliver to Administrative Agent upon request not more than once
each year schedules setting forth all insurance then in effect.

          (e) Governmental Charges and Other Indebtedness. Borrower and its
Subsidiaries shall promptly pay and discharge when due (i) all taxes and other
Governmental Charges prior to the date upon which penalties accrue thereon, (ii)
all indebtedness which, if unpaid, could become a Lien upon the property of
Borrower or its Material Subsidiaries and (iii) subject to any subordination
provisions applicable thereto, all other Indebtedness which in each case, if
unpaid, is reasonably likely to have a Material Adverse Effect, except such
Indebtedness as may in good faith be contested or disputed, or for which
arrangements for deferred payment have been made, provided that in each such
case appropriate reserves are maintained to the reasonable satisfaction of
Administrative Agent.

          (f) Use of Proceeds. Borrower shall use the proceeds of the Loans only
for the respective purposes set forth in Paragraph 2.05. Borrower shall not use
any part of the proceeds of any Loan, directly or indirectly, for the purpose of
purchasing or carrying any Margin Stock or for the purpose of purchasing or
carrying or trading in any securities under such circumstances as to involve
Borrower, any Lender or Administrative Agent in a violation of Regulations T, U
or X issued by the Federal Reserve Board.

          (g) General Business Operations. Other than as permitted by
Subparagraphs 5.02(c) and 5.02(d), each of Borrower and its Subsidiaries shall
(i) preserve and maintain its corporate existence and all of its rights,
privileges and franchises reasonably necessary to the conduct of its business,
(ii) conduct its business activities in compliance with all Requirements of Law
and Contractual Obligations applicable to such Person and (iii) keep all
property useful and necessary in its business in good working order and
condition, ordinary wear and tear excepted, except, in each case, where any
failure is not reasonably likely to have a Material Adverse Effect. Borrower
shall maintain its chief executive office and principal place of business in the
United States.

          (h) Year 2000 Compatibility. Borrower and its Subsidiaries shall take
all acts reasonably necessary to ensure that all software, hardware, firmware,
equipment, goods and systems utilized by or material to their business
operations or financial condition will properly perform date sensitive functions
before, during and after the year 2000 except where the failure to do so would
not have a Material Adverse Effect.

          (i) Pari Passu Ranking. Borrower shall take, or cause to be taken, all
actions necessary to ensure that the Obligations of Borrower are and continue to
rank at least pari passu in right of payment with all other unsecured
Indebtedness of Borrower.

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          5.02. Negative Covenants. Until the termination of this Agreement and
the satisfaction in full by Borrower of all Obligations, Borrower will comply,
and will cause compliance, with the following negative covenants, unless
Required Lenders shall otherwise consent in writing:

          (a) Indebtedness. Neither Borrower nor any of its Subsidiaries shall
create, incur, assume or permit to exist any Indebtedness except for the
following (“Permitted Indebtedness”):

          (i) The Obligations of Borrower under the Credit Documents;

          (ii) Indebtedness of Borrower and its Subsidiaries listed in Schedule
5.02(a) and existing on the date of this Agreement which does not otherwise
qualify as Permitted Indebtedness;

          (iii) Indebtedness of Borrower and its Subsidiaries arising from the
endorsement of instruments for collection in the ordinary course of their
businesses;

          (iv) Indebtedness of Borrower and its Subsidiaries for trade accounts
payable, provided that (A) such accounts arise in the ordinary course of
business and (B) no material part of any such account is more than ninety (90)
days past due (unless subject to a bona fide dispute and for which adequate
reserves have been established);

          (v) Indebtedness of Borrower and its Subsidiaries under Rate
Contracts, provided that, at the time each Rate Contract is entered into, such
Rate Contract is for bona fide hedging operations and not for speculation;

          (vi) Indebtedness of Borrower and its Subsidiaries under initial or
successive refinancings of any Indebtedness permitted by clause (ii) above,
provided that (A) the principal amount of any such refinancing does not exceed
the principal amount of the Indebtedness being refinanced and (B) the material
terms and provisions of any such refinancing (including maturity, redemption,
prepayment, default and subordination provisions) are no less favorable to
Lenders than the Indebtedness being refinanced;

          (vii) Indebtedness of Borrower and its Subsidiaries with respect to
surety, appeal, indemnity, performance or other similar bonds in the ordinary
course of business (including surety or similar bonds issued in connection with
the stay of a proceeding of the type described in Subparagraph 6.01(h));

          (viii) Guaranty Obligations of Borrower in respect of Permitted
Indebtedness of its Subsidiaries;

          (ix) Indebtedness of Borrower to any of its Subsidiaries, Indebtedness
of any of Borrower’s Subsidiaries to Borrower or Indebtedness of any of
Borrower’s Subsidiaries to any of Borrower’s other Subsidiaries;

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          (x) Other Indebtedness of Borrower and its Subsidiaries, provided that
the aggregate principal amount of all such other Indebtedness outstanding at any
time does not exceed the sum of $200,000,000 plus ten percent (10%) of
Borrower’s Net Worth determined as of the last day of the immediately preceding
fiscal quarter.

          (b) Liens. Neither Borrower nor any of its Subsidiaries shall create,
incur, assume or permit to exist any Lien on or with respect to any of its
assets or property of any character, whether now owned or hereafter acquired,
except for the following (“Permitted Liens”):

          (i) Liens in favor of Administrative Agent or any Lender securing the
Obligations;

          (ii) Liens listed in Schedule 5.02(b) and existing on the date of this
Agreement which do not otherwise qualify as Permitted Liens;

          (iii) Liens for taxes or other Governmental Charges not at the time
delinquent or thereafter payable without penalty or being contested in good
faith, provided that adequate reserves for the payment thereof have been
established in accordance with GAAP;

          (iv) Liens of carriers, warehousemen, mechanics, materialmen, vendors,
and landlords and other similar Liens imposed by law incurred in the ordinary
course of business for sums not overdue more than 45 days or being contested in
good faith, provided that adequate reserves for the payment thereof have been
established in accordance with GAAP;

          (v) Deposits under workers’ compensation, unemployment insurance and
social security laws or to secure the performance of bids, tenders, contracts
(other than for the repayment of borrowed money) or leases, or to secure
statutory obligations of surety or appeal bonds or to secure indemnity,
performance or other similar bonds in the ordinary course of business;

          (vi) Zoning restrictions, easements, rights-of-way, title
irregularities and other similar encumbrances, which alone or in the aggregate
are not substantial in amount and do not materially detract from the value of
the property subject thereto or interfere with the ordinary conduct of the
business of Borrower or any of its Subsidiaries;

          (vii) Banker’s Liens and similar Liens (including set-off rights) in
respect of bank deposits;

          (viii) Liens on any property or assets acquired, or on the property or
assets of any Persons acquired, by Borrower or any of its Subsidiaries after the
date of this Agreement pursuant to Subparagraph 5.02(d), provided that (A) such

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Liens exist at the time such property or assets or such Persons are so acquired
and (B) such Liens were not created in contemplation of such acquisitions;

          (ix) Judgement Liens, provided that such Liens do not constitute an
Event of Default under Subparagraph 6.01(h);

          (x) Liens in favor of customs and revenue authorities arising as a
matter of law to secure payment of customs duties and in connection with the
importation of goods in the ordinary course of Borrower’s and its Subsidiaries’
businesses;

          (xi) Liens securing purchase money loans and Capital Leases incurred
by Borrower and its Subsidiaries to finance their acquisition of real property,
fixtures or equipment provided that (A) in each case, the Indebtedness secured
by such Liens (1) is incurred by such Person at the time of, or not later than
ninety (90) days after, the acquisition by such Person of the property so
financed, (2) does not exceed the purchase price of the property so financed;
and (3) constitutes Permitted Indebtedness under Subparagraph 5.02(a); and (B)
in each case, such Lien (1) covers only those assets, the acquisition of which
was financed by such Permitted Indebtedness, and (2) secures only such Permitted
Indebtedness; and provided, further, that this clause (xi) shall apply to Liens
incurred to finance the costs incurred by Adobe Systems Europe, Ltd. to acquire
real property in Scotland prior to the date of this Agreement, construct
improvements thereon and install fixtures and equipment therein prior to
completion so long as the Indebtedness secured thereby meets all of the
foregoing requirements except clause (A)(1);

          (xii) Liens on the property or assets of any Subsidiary of Borrower in
favor of Borrower or any other Subsidiary of Borrower;

          (xiii) Liens incurred in connection with the extension, renewal or
refinancing of the Indebtedness secured by the Liens described in clause (ii) or
(xi) above, provided that any extension, renewal or replacement Lien (A) is
limited to the property covered by the existing Lien and (B) secures
Indebtedness which is no greater in amount and has material terms no less
favorable to Lenders than the Indebtedness secured by the existing Lien; and

          (xiv) Other Liens, provided that (A) the Indebtedness secured by such
other Liens constitutes Permitted Indebtedness under Subparagraph 5.02(a) and
(B) the aggregate principal amount of such Indebtedness outstanding at any time
does not exceed ten percent (10%) of Borrower’s Net Worth determined as of the
last day of the immediately preceding fiscal quarter.

          (c) Asset Dispositions. Neither Borrower nor any of its Subsidiaries
shall sell, lease, transfer or otherwise dispose of any of its assets or
property, whether now owned or hereafter acquired, except for the following:

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          (i) Sales by Borrower and its Subsidiaries of inventory in the
ordinary course of their businesses;

          (ii) Sales by Borrower and its Subsidiaries of surplus, damaged, worn
or obsolete equipment or inventory in the ordinary course of their businesses;

          (iii) Sales by Borrower and its Subsidiaries or other dispositions of
Investments permitted by Subparagraph 5.02(e); (iv) Sales or assignments by
Borrower and its Subsidiaries of defaulted receivables to a collection agency in
the ordinary course of their businesses;

          (v) Licenses by Borrower and its Subsidiaries of their products,
patents, copyrights, trademarks, trade names, trade secrets, service marks and
any other intellectual property in the ordinary course of their businesses;

          (vi) Sales by Borrower and its Subsidiaries of closed facilities which
are for cash and do not exceed $55,000,000 in the aggregate during the term of
this Agreement;

          (vii) Sales, licenses or other dispositions of assets and property by
Borrower to any of Borrower’s Subsidiaries or by any of Borrower’s Subsidiaries
to Borrower or any of its other Subsidiaries; and

          (viii) Other sales, leases, transfers and disposals by Borrower and
its Subsidiaries of assets and property, provided that(A) no Default has
occurred and is continuing on the date of, or will result after giving effect
to, any such sale, lease, transfer or disposal and (B) the aggregate book value
of all such assets and property so sold, leased, transferred or otherwise
disposed of in any fiscal year does not exceed ten percent (10%) of Borrower’s
Net Worth determined as of the last day of the immediately preceding fiscal
year.

          (d) Mergers, Acquisitions, Etc. Neither Borrower nor any of its
Subsidiaries shall consolidate with or merge into any other Person or permit any
other Person to merge into it, establish any new Subsidiary, acquire any Person
as a new Subsidiary or acquire all or substantially all of the assets of any
other Person, except as follows:

          (i) Borrower and its Subsidiaries may merge with each other, provided
that (A) no Default has occurred and is continuing on the date of, or will
result after giving effect to, any such merger and (B) in any such merger
involving Borrower, Borrower is the surviving corporation;

          (ii) Any Subsidiary of Borrower may dissolve after transferring or
distributing its assets to Borrower or any of its Subsidiaries, provided that no
Default has occurred and is continuing on the date of, or will result after
giving effect to, any such dissolution; and

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          (iii) Borrower and its Subsidiaries may establish any new Subsidiary
or acquire any Person as a new Subsidiary or all or substantially all of the
assets of any other Person, provided that no Default has occurred and is
continuing on the date of, or will result after giving effect to, any such
acquisition.

          (e) Investments. Neither Borrower nor any of its Subsidiaries shall
make any Investment except for Investments in the following:

          (i) Investments permitted by the investment policy of Borrower set
forth in Schedule 5.02(e) or, if any changes to the investment policy of
Borrower are hereafter duly approved by the Board of Directors of Borrower or
designated committee thereof, in any subsequent investment policy which is the
most recent investment policy delivered by Borrower to Administrative Agent with
a certificate of Borrower’s chief financial officer to the effect that such
investment policy has been duly approved by Borrower’s Board of Directors and is
then in effect;

          (ii) Investments listed in Schedule 5.02(e) existing on the date of
this Agreement which are not otherwise permitted by the investment policy of
Borrower set forth in Schedule 5.02(e);

          (iii) Investments received by Borrower and its Subsidiaries in
connection with the bankruptcy or reorganization of customers and suppliers and
in settlement of delinquent obligations of, and other disputes with, customers
and suppliers arising in the ordinary course of business;

          (iv) Investments arising from rights received by Borrower and its
Subsidiaries upon the required payment of any permitted Indebtedness of Borrower
and its Subsidiaries;

          (v) Investments consisting of loans to employees, officers and
directors of Borrower or its Subsidiaries;

          (vi) Investments by Borrower and its Subsidiaries in Rate Contracts,
provided that, at the time each Rate Contract is entered into, such Rate
Contract is for bona fide hedging operations and not for speculation;

          (vii) Deposit accounts;

          (viii) Investments permitted by Subparagraph 5.02(d);

          (ix) Investments by Borrower and its Subsidiaries in each other;

          (x) Venture capital Investments made by Borrower and/or its
Subsidiaries and Adobe Ventures, L.P., Adobe Ventures II, L.P. and any other
venture capital partnership in which all of the limited partners are Borrower,
its Subsidiaries, its Affiliates or employees of Borrower or its Subsidiaries

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(individually, a “VC Partnership”), provided that (A) at the time a venture
capital Investment is made in any Person, such Person either operates or is
expected to operate in an industry related to the business operations of
Borrower or its Subsidiaries (including Persons which possess or may possess
technologies, sales and services capabilities, operations or content related to
any product of Borrower or its Subsidiaries) or has been identified by Borrower
as a candidate for a strategic relationship with Borrower or its Subsidiaries,
(B) the aggregate consideration paid (including Indebtedness incurred) by
Borrower or its Subsidiaries for all such venture capital Investments (less any
return of capital received in cash on the sale of such venture capital
Investments and any gain or other income realized on such venture capital
Investments which is reinvested in new venture capital Investments) does not
exceed $175,000,000 at any time, and (C) no Default has occurred and is
continuing on the date of, or will result after giving effect to, any such
venture capital Investment;

          (xi) Investments consisting of purchase money financing provided by
Borrower and its Subsidiaries to their customers; and

          (xii) Other Investments, provided that:

          (A) No Default has occurred and is continuing on the date of, or will
result after giving effect to, any such Investment; and

          (B) The aggregate consideration paid (including Indebtedness incurred)
by Borrower and its Subsidiaries for all such Investments in any fiscal year
does not exceed ten percent (10%) of Borrower’s Net Worth determined as of the
last day of the immediately preceding fiscal year.

          (f) Dividends, Redemptions, Etc. Neither Borrower nor any of its
Subsidiaries shall pay any dividends or make any distributions on its Equity
Securities; purchase, redeem, retire, defease or otherwise acquire for value any
of its Equity Securities; return any capital to any holder of its Equity
Securities as such; make any distribution of assets, Equity Securities,
obligations or securities to any holder of its Equity Securities as such; or set
apart any sum for any such purpose; except as follows:

          (i) Borrower or any of its Subsidiaries may pay dividends on its
capital stock payable solely in such Person’s own capital stock and Borrower may
purchase, redeem, retire, defease or otherwise acquire for value capital stock
of Borrower issued to employees of Borrower or its Subsidiaries in exchange for
other capital stock of Borrower;

          (ii) Any Subsidiary of Borrower may pay dividends to or repurchase its
capital stock from Borrower;

          (iii) Adobe Incentive Partners may make Adobe Incentive Partners
Distributions and any VC Partnership may make distributions to its partners;

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          (iv) Borrower may repurchase its capital stock from an employee of
Borrower or its Subsidiaries (A) in an amount equal to any taxes payable by such
employee upon the exercise of options to purchase capital stock of Borrower, or
(B) upon termination of such employee’s employment; and

          (v) Borrower may pay other dividends on its capital stock in cash or
repurchase its capital stock for cash, provided that:

          (A) In each case, no Event of Default has occurred and is continuing
on the date of, or will result after giving effect to, any such payment or
repurchase; and

          (B) If the Debt/EBITDA Ratio of Borrower for any consecutive
four-quarter period is equal to or greater than 1.25:1.00, the sum of Borrower’s
Net Share Repurchases and cash dividends (excluding dividends payable pursuant
to clauses (ii) and (iii) above) for the next succeeding quarter shall not
exceed forty percent (40%) of Borrower’s EBITDA for such consecutive
four-quarter period.

          (g) Change in Business. Neither Borrower nor any of its Subsidiaries
shall engage in any business substantially different from its present business,
as described in the 10-K report filed by Borrower with the Securities and
Exchange Commission for the fiscal year ended November 27, 1998, and other
internet-related services for its customers.

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          (h) Employee Benefit Plans. 

          (i) Neither Borrower nor any ERISA Affiliate shall (A) adopt or
institute any Employee Benefit Plan that is an employee pension benefit plan
within the meaning of Section 3(2) of ERISA, (B) take any action which will
result in the partial or complete withdrawal, within the meanings of sections
4203 and 4205 of ERISA, from a Multiemployer Plan, (C) engage or permit any
Person to engage in any transaction prohibited by section 406 of ERISA or
section 4975 of the IRC involving any Employee Benefit Plan or Multiemployer
Plan which would subject Borrower or any ERISA Affiliate to any tax, penalty or
other liability including a liability to indemnify, (D) incur or allow to exist
any accumulated funding deficiency (within the meaning of section 412 of the IRC
or section 302 of ERISA), (E) fail to make full payment when due of all amounts
due as contributions to any Employee Benefit Plan or Multiemployer Plan, (F)
fail to comply with the requirements of section 4980B of the IRC or Part 6 of
Title I(B) of ERISA, or (G) adopt any amendment to any Employee Benefit Plan
which would require the posting of security pursuant to section 401(a)(29) of
the IRC, where singly or cumulatively, the above would be reasonably likely to
have a Material Adverse Effect.

          (ii) Neither Borrower nor any of its Subsidiaries shall (A) engage in
any transaction prohibited by any Governmental Rule applicable to any Foreign
Plan, (B) fail to make full payment when due of all amounts due as contributions
to any Foreign Plan or (C) otherwise fail to comply with the requirements of any
Governmental Rule applicable to any Foreign Plan, where singly or cumulatively,
the above would be reasonably likely to have a Material Adverse Effect.

          (i) Transactions With Affiliates. Neither Borrower nor any of its
Subsidiaries shall enter into any Contractual Obligation with any Affiliate
(other than Borrower or one of its Subsidiaries) or engage in any other
transaction with any Affiliate except (i) for agreements with officers and
directors of Borrower or its Subsidiaries for indemnification or participation
under Borrower’s equity plans and loans to or retention or severance agreements
with officers and directors of Borrower or its Subsidiaries, each as approved by
the Board of Directors of Borrower; (ii) upon terms at least as favorable to
Borrower or such Subsidiary as an arms-length transaction with unaffiliated
Persons; or (iii) for transactions with Affiliates in which Borrower or its
Subsidiaries have venture capital Investments permitted by Subparagraph
5.02(e)(x).

          (k) Accounting Changes. Neither Borrower nor any of its Subsidiaries
shall change (i) its fiscal year (currently ending the Friday closest to
November 30) or (ii) its accounting practices except as required by GAAP.

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          5.03. Financial Covenants. Until the termination of this Agreement and
the satisfaction in full by Borrower of all Obligations, Borrower will comply,
and will cause compliance, with the following financial covenants, unless
Required Lenders shall otherwise consent in writing:

          (a) Quick Ratio. Borrower shall not permit its Quick Ratio to be less
than 1.00 on the last day of any fiscal quarter.

          (b) Debt/EBITDA Ratio. Borrower shall not permit its Debt/EBITDA Ratio
for any consecutive four-quarter period to be greater than 2.50.

          (c) Fixed Charge Coverage Ratio. Borrower shall not permit its Fixed
Charge Coverage Ratio for any consecutive four-quarter period to be less than
2.25.

SECTION VI.     DEFAULT.

          6.01. Events of Default. The occurrence or existence of any one or
more of the following shall constitute an “Event of Default” hereunder:

          (a) Non-Payment. Borrower shall (i) fail to pay when due any principal
of any Loan, (ii) fail to pay on the Maturity Date for any Loans any interest,
fees or other amounts payable with respect to such Loans on such Maturity Date,
or (iii) fail to pay within five (5) days after the same becomes due, any other
interest, fees or amounts required under the terms of this Agreement or any of
the other Credit Documents; or

          (b) Specific Defaults. Borrower or any of its Subsidiaries shall fail
to observe or perform any covenant, obligation, condition or agreement set forth
in Paragraph 5.02 or Paragraph 5.03; or

          (c) Other Defaults. Borrower or any of its Subsidiaries shall fail to
observe or perform any other covenant, obligation, condition or agreement
contained in this Agreement or the other Credit Documents and such failure shall
continue for fifteen (15) Business Days after the earlier of (i) Borrower’s
written acknowledgement of such failure and (ii) Administrative Agent’s or any
Lender’s written notice to Borrower of such failure; or

          (d) Representations and Warranties. Any written representation,
warranty, certificate, information or other statement (financial or otherwise)
made or furnished by Borrower or any of its Subsidiaries to Administrative Agent
or any Lender in or in connection with this Agreement or any of the other Credit
Documents shall be false, incorrect, incomplete or misleading in any material
respect when made or furnished and either:

          (i) Borrower has acknowledged that such representation, warranty,
certificate, information or other statement was false, incorrect, incomplete or
misleading in any material respect or Administrative Agent or any Lender has

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delivered to Borrower written notice to such effect and such representation,
warranty, certificate, information or other statement cannot be remedied; or

          (ii) Such representation, warranty, certificate, information or other
statement continues to be false, incorrect, incomplete or misleading in any
material respect thirty (30) days after the earlier of (A) Borrower’s written
acknowledgement that such representation, warranty, certificate, information or
other statement was false, incorrect, incomplete or misleading in any material
respect and (B) Administrative Agent’s or any Lender’s written notice to
Borrower to such effect; or

          (e) Cross-Default. (i) Borrower or any of its Subsidiaries shall fail
to make any payment on account of any Indebtedness of such Person (other than
the Obligations) when due (whether at scheduled maturity, by required
prepayment, upon acceleration or otherwise) and such failure shall continue
beyond any period of grace provided with respect thereto, if the amount of such
Indebtedness exceeds $5,000,000 or the effect of such failure is to cause, or
permit the holder or holders thereof to cause, Indebtedness of Borrower and its
Subsidiaries (other than the Obligations) in an aggregate amount exceeding
$5,000,000 to become redeemable, due or otherwise payable (whether at scheduled
maturity, by required prepayment, upon acceleration or otherwise) and/or to be
secured by cash collateral or (ii) Borrower or any of its Subsidiaries shall
otherwise fail to observe or perform any agreement, term or condition contained
in any agreement or instrument relating to any Indebtedness of such Person
(other than the Obligations), or any other event shall occur or condition shall
exist, if the effect of such failure, event or condition is to cause, or permit
the holder or holders thereof to cause, Indebtedness of Borrower and its
Subsidiaries (other than the Obligations) in an aggregate amount exceeding
$5,000,000 to become redeemable, due or otherwise payable (whether at scheduled
maturity, by required prepayment, upon acceleration or otherwise) and/or to be
secured by cash collateral; or

          (f) Insolvency, Voluntary Proceedings. Borrower or any of its Material
Subsidiaries shall (i) apply for or consent to the appointment of a receiver,
trustee, liquidator or custodian of itself or of all or a substantial part of
its property, (ii) be unable, or admit in writing its inability, to pay its
debts generally as they mature, (iii) make a general assignment for the benefit
of its or any of its creditors, (iv) be dissolved or liquidated in full or in
part except as otherwise permitted by Subparagraph 5.02(d)(ii), (v) become
insolvent (as such term may be defined or interpreted under any applicable
statute), (vi) commence a voluntary case or other proceeding seeking
liquidation, reorganization or other relief with respect to itself or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in effect
or consent to any such relief or to the appointment of or taking possession of
its property by any official in an involuntary case or other proceeding
commenced against it, or (vi) take any action for the purpose of effecting any
of the foregoing; or

          (g) Involuntary Proceedings. Proceedings for the appointment of a
receiver, trustee, liquidator or custodian of Borrower or any of its Material
Subsidiaries or of all or

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a substantial part of the property thereof, or an involuntary case or other
proceedings seeking liquidation, reorganization or other relief with respect to
Borrower or any of its Material Subsidiaries or the debts thereof under any
bankruptcy, insolvency or other similar law now or hereafter in effect shall be
commenced and an order for relief entered or such proceeding shall not be
dismissed or discharged within sixty (60) days of commencement; or

          (h) Judgments. (i) One or more judgments, orders, decrees or
arbitration awards requiring Borrower and/or its Subsidiaries to pay an
aggregate amount of $10,000,000 or more (exclusive of amounts covered by
insurance issued by an insurer not an Affiliate of Borrower and otherwise
satisfying the requirements set forth in Subparagraph 5.01(d)) shall be rendered
against Borrower and/or any of its Subsidiaries in connection with any single or
related series of transactions, incidents or circumstances and the same shall
not be satisfied, vacated or stayed for a period of ten (10) consecutive days;
(ii) any judgment, writ, assessment, warrant of attachment, tax lien or
execution or similar process shall be issued or levied against a substantial
part of the property of Borrower and its Subsidiaries taken as a whole and the
same shall not be released, stayed, vacated or otherwise dismissed within ten
(10) days after issue or levy; or (iii) any other judgments, orders, decrees,
arbitration awards, writs, assessments, warrants of attachment, tax liens or
executions or similar processes which, alone or in the aggregate, are reasonably
likely to have a Material Adverse Effect are rendered, issued or levied; or

          (i) Credit Documents. The Credit Documents, taken as a whole, shall
cease to provide Administrative Agent or any Lender the practical realization of
the material rights and remedies intended to be provided thereunder or be
asserted by Borrower or any of its Subsidiaries not to be a legal, valid and
binding obligation of Borrower or any of its Subsidiaries enforceable in
accordance with its terms; or

          (j) Employee Benefit Plans. Any Reportable Event which constitutes
grounds for the termination of any Employee Benefit Plan by the PBGC or for the
appointment of a trustee by the PBGC to administer any Employee Benefit Plan
shall occur, or any Employee Benefit Plan shall be terminated within the meaning
of Title IV of ERISA or a trustee shall be appointed by the PBGC to administer
any Employee Benefit Plan; or

          (k) Change of Control. Any Change of Control shall occur; or

          (l) Material Adverse Effect. Any event(s) or condition(s) which is
(are) reasonably likely to have a Material Adverse Effect shall occur or exist.

          6.02. Remedies. At any time after the occurrence and during the
continuance of any Event of Default (other than an Event of Default referred to
in Subparagraph 6.01(f) or 6.01(g)), Administrative Agent may, with the consent
of the Required Lenders, or shall, upon instructions from the Required Lenders,
by written notice to Borrower, (a) terminate the Commitments and the obligations
of Lenders to make Loans and/or (b) declare all outstanding Obligations payable
by Borrower to be immediately due and payable without presentment, demand,
protest or any other notice of any kind, all of which are hereby expressly
waived, anything contained herein or

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in the Notes to the contrary notwithstanding. Upon the occurrence or existence
of any Event of Default described in Subparagraph 6.01(f) or 6.01(g),
immediately and without notice, (1) the Commitments and the obligations of
Lenders to make Loans shall automatically terminate and (2) all outstanding
Obligations payable by Borrower hereunder shall automatically become immediately
due and payable, without presentment, demand, protest or any other notice of any
kind, all of which are hereby expressly waived, anything contained herein or in
the Notes to the contrary notwithstanding. In addition to the foregoing
remedies, upon the occurrence or existence of any Event of Default,
Administrative Agent may exercise any other right, power or remedy available to
it under any of the Credit Documents or otherwise by law, either by suit in
equity or by action at law, or both.

SECTION VII.     AGENTS AND RELATIONS AMONG LENDERS.

          7.01. Appointment, Powers and Immunities of Administrative Agent. Each
Lender hereby appoints and authorizes Administrative Agent to act as its agent
hereunder and under the other Credit Documents with such powers as are expressly
delegated to Administrative Agent by the terms of this Agreement and the other
Credit Documents, together with such other powers as are reasonably incidental
thereto. Administrative Agent shall not have any duties or responsibilities
except those expressly set forth in this Agreement or in any other Credit
Document, be a trustee for any Lender or have any fiduciary duty to any Lender.
Notwithstanding anything to the contrary contained herein, Administrative Agent
shall not be required to take any action which is contrary to this Agreement or
any other Credit Document or any applicable Governmental Rule. Neither
Administrative Agent nor any Lender shall be responsible to any other Lender for
any recitals, statements, representations or warranties made by Borrower or any
of its Subsidiaries contained in this Agreement or in any other Credit Document,
for the value, validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any other Credit Document or for any failure by
Borrower or any of its Subsidiaries to perform their respective obligations
hereunder or thereunder. Administrative Agent may employ agents and
attorneys-in-fact and shall not be responsible to any Lender for the negligence
or misconduct of any such agents or attorneys-in-fact selected by it with
reasonable care. Neither Administrative Agent nor any of its directors,
officers, employees, agents or advisors shall be responsible to any Lender for
any action taken or omitted to be taken by it or them hereunder or under any
other Credit Document or in connection herewith or therewith, except for its or
their own gross negligence or willful misconduct. Except as otherwise provided
under this Agreement, Administrative Agent shall take such action with respect
to the Credit Documents as shall be directed by the Required Lenders.
Administrative Agent shall provide each Lender with copies of such documents
received from Borrower pursuant to the Credit Documents as such Lender may
reasonably request.

          7.02. Reliance by Administrative Agent. Administrative Agent shall be
entitled to rely upon any certificate, notice or other document (including any
cable, telegram, facsimile or telex) believed by it in good faith to be genuine
and correct and to have been signed or sent by or on behalf of the proper Person
or Persons, and upon advice and statements of legal counsel, independent
accountants and other experts selected by Administrative Agent with reasonable
care. As to any other matters not expressly provided for by this Agreement,
Administrative

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Agent shall not be required to take any action or exercise any discretion, but
shall be required to act or to refrain from acting upon instructions of the
Required Lenders and shall in all cases be fully protected by Lenders in acting,
or in refraining from acting, hereunder or under any other Credit Document in
accordance with the instructions of the Required Lenders, and such instructions
of the Required Lenders and any action taken or failure to act pursuant thereto
shall be binding on all of Lenders.

          7.03. Defaults. Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default unless Borrower has failed
to make a payment required to be made to Administrative Agent hereunder or
Administrative Agent has received a written notice from a Lender or Borrower,
referring to this Agreement and describing the provision under which such
Default occurred. If Administrative Agent receives such a notice of the
occurrence of a Default, Administrative Agent shall give prompt notice thereof
to Lenders. Administrative Agent shall take such action with respect to such
Default as shall be reasonably directed by the Required Lenders; provided,
however, that until Administrative Agent shall have received such directions,
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default as it shall deem
advisable in the best interest of Lenders.

          7.04. Indemnification. Without limiting the Obligations of Borrower
hereunder, each Lender agrees to indemnify Administrative Agent (to the extent
not reimbursed by Borrower), ratably in accordance with their Proportionate
Shares, for any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever which may at any time be imposed on, incurred by or asserted
against Administrative Agent (other than in its capacity as a Lender) in any way
relating to or arising out of this Agreement or any documents contemplated by or
referred to herein or therein or the transactions contemplated hereby or thereby
or the enforcement of any of the terms hereof or thereof subject to
reimbursement on a pro rata basis if any such payment is subsequently recovered
from Borrower; provided, however, that no Lender shall be liable for any of the
foregoing to the extent they arise from Administrative Agent’s gross negligence
or willful misconduct. Administrative Agent shall be fully justified in refusing
to take or in continuing to take any action hereunder unless it shall first be
indemnified to its satisfaction by Lenders against any and all liability and
expense which may be incurred by it by reason of taking or continuing to take
any such action. The obligations of each Lender under this Paragraph 7.04 shall
survive the payment and performance of the Obligations, the termination of this
Agreement and any Lender ceasing to be a party to this Agreement (with respect
to events which occurred prior to the time such Lender ceased to be a Lender
hereunder).

          7.05. Non-Reliance. Each Lender represents that it has, independently
and without reliance on Administrative Agent or any other Lender, and based on
such documents and information as it has deemed appropriate, made its own
appraisal of the business, prospects, management, financial condition and
affairs of Borrower and the Subsidiaries and its own decision to enter into this
Agreement and agrees that it will, independently and without reliance upon
Administrative Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
appraisals and decisions in taking or not taking action under this Agreement.
Neither Administrative Agent nor any of its

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affiliates nor any of their respective directors, officers, employees, agents or
advisors shall (a) be required to keep any Lender informed as to the performance
or observance by Borrower or any of its Subsidiaries of the obligations under
this Agreement or any other document referred to or provided for herein or to
make inquiry of, or to inspect the properties or books of Borrower or any of its
Subsidiaries; (b) have any duty or responsibility to provide any Lender with any
credit or other information concerning Borrower or any of its Subsidiaries which
may come into the possession of Administrative Agent, except for notices,
reports and other documents and information expressly required to be furnished
to Lenders by Administrative Agent hereunder; or (c) be responsible to any
Lender for (i) any recital, statement, representation or warranty made by
Borrower or any officer, employee or agent of Borrower in this Agreement or in
any of the other Credit Documents, (ii) the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any Credit
Document, (iii) the value or sufficiency of any collateral or the validity or
perfection of any of the liens or security interests intended to be created by
the Credit Documents, or (iv) any failure by Borrower to perform its obligations
under this Agreement or any other Credit Document.

          7.06. Resignation or Removal of Administrative Agent. Subject to the
appointment and acceptance of a successor Administrative Agent as provided
below, Administrative Agent may resign at any time by giving thirty (30) days
prior written notice thereof to Borrower and Lenders, and Administrative Agent
may be removed at any time with or without cause by the Required Lenders. Upon
any such resignation or removal, the Required Lenders shall have the right to
appoint a successor Administrative Agent, which Administrative Agent, if not a
Lender, shall be reasonably acceptable to Borrower; provided, however, that
Borrower shall have no right to approve a successor Administrative Agent if a
Default has occurred and is continuing. Upon the acceptance of any appointment
as Administrative Agent hereunder by a successor Administrative Agent, such
successor Administrative Agent shall thereupon succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from the duties
and obligations thereafter arising hereunder. After any retiring Administrative
Agent’s resignation or removal hereunder as Administrative Agent, the provisions
of this Section VII shall continue in effect for its benefit in respect of any
actions taken or omitted to be taken by it while it was acting as Administrative
Agent.

          7.07. Administrative Agent in its Individual Capacity. Administrative
Agent and its affiliates may make loans to, accept deposits from and generally
engage in any kind of banking or other business with Borrower and its
Subsidiaries and affiliates as though Administrative Agent were not
Administrative Agent hereunder. With respect to Loans, if any, made by
Administrative Agent in its capacity as a Lender, Administrative Agent in its
capacity as a Lender shall have the same rights and powers under this Agreement
and the other Credit Documents as any other Lender and may exercise the same as
though it were not Administrative Agent, and the terms “Lender” or “Lenders”
shall include Administrative Agent in its capacity as a Lender.

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SECTION VIII.      MISCELLANEOUS.

     8.01.      Notices. Except as otherwise provided herein, all notices,
requests, demands, consents, instructions or other communications to or upon
Borrower, any Lender or Administrative Agent under this Agreement or the other
Credit Documents shall be in writing and faxed, mailed, delivered or, where
permitted, electronically mailed, if to Borrower or Administrative Agent, at its
respective facsimile number or address set forth below or, if to any Lender, at
the address or facsimile number specified beneath the heading “Address for
Notices” under the name of such Lender in Part B of Schedule I (or to such other
facsimile number or address for any party as indicated in any notice given by
that party to the other parties or in any applicable Assignment Agreement). All
such notices and communications shall be effective (a) when sent by an overnight
courier service of recognized standing, upon delivery; (b) when mailed, first
class postage prepaid and addressed as aforesaid through the United States
Postal Service, upon receipt; (c) when delivered by hand, upon delivery; (d)
when faxed, upon confirmation of receipt and (e) when electronically mailed,
upon return confirmation of receipt; provided, however, that any notice
delivered to Administrative Agent under Section II shall not be effective until
received by Administrative Agent.

Administrative Agent:   ABN AMRO Bank N.V.      208 South LaSalle Street, Suite
1500      Chicago, IL 60604-1003      Attn: Agency Services, Joycelyn Gay     
Tel. No: (312) 992-5094      Fax. No: (312) 992-5157      Email:
joycelyn.gay@abnamro.com                With a copy to:                ABN AMRO
Bank N.V.       101 California Street, Suite 4550      San Francisco, CA
94111-5812      Attn: Jamie Dillon      Tel: (415) 984-3750      Fax: (415)
362-3524      Email: jamie.dillon@abnamro.com         Borrower:   Adobe Systems
Incorporated      345 Park Avenue      San Jose, CA 95110-2704      Attn:
Barbara Hill, Treasurer      Tel. No: (408) 536-3272      Fax No. (408) 537-4035
     Email: bhill@adobe.com        

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Each Notice of Borrowing, Extension Request, Notice of Term Loan Conversion and
Notice of Interest Period Selection shall be given by Borrower to Administrative
Agent’s office located at the address referred to above during Administrative
Agent’s normal business hours; provided, however, that any such notice received
by Administrative Agent after 11:00 a.m. (San Francisco time) on any Business
Day shall be deemed received by Administrative Agent on the next Business Day.
In any case where this Agreement authorizes notices, requests, demands or other
communications by Borrower to Administrative Agent or any Lender to be made by
telephone or facsimile, Administrative Agent or any Lender may conclusively
presume that anyone purporting to be a person designated in any incumbency
certificate or other similar document received by Administrative Agent or a
Lender is such a person.

     8.02.      Expenses. Borrower shall pay on demand, whether or not any Loan
is made hereunder, (a) all reasonable fees and expenses, including reasonable
attorneys’ fees and expenses, incurred by Administrative Agent in connection
with the syndication of the facilities provided hereunder, the preparation,
negotiation, execution and delivery of, and the exercise of its duties under,
this Agreement and the other Credit Documents, and the preparation, negotiation,
execution and delivery of amendments and waivers hereunder and thereunder and
(b) all reasonable fees and expenses, including reasonable attorneys’ fees and
expenses, incurred by Administrative Agent and Lenders in the enforcement or
attempted enforcement of any of the Obligations or in preserving any of
Administrative Agent’s or Lenders’ rights and remedies (including, without
limitation, all such fees and expenses incurred in connection with any “workout”
or restructuring affecting the Credit Documents or the Obligations or any
bankruptcy or similar proceeding involving Borrower or any of its Subsidiaries).
As used herein, the term “reasonable attorneys’ fees and expenses” shall
include, without limitation, allocable costs and expenses of Administrative
Agent’s and Lenders’ in-house legal counsel and staff. The obligations of
Borrower under this Paragraph 8.02 shall survive the payment and performance of
the Obligations and the termination of this Agreement.

     8.03.      Indemnification. To the fullest extent permitted by law,
Borrower agrees to protect, indemnify, defend and hold harmless Administrative
Agent, Lenders and their Affiliates and their respective directors, officers,
employees, agents and advisors (“Indemnitees”) from and against any and all
liabilities, losses, damages or expenses of any kind or nature and from any
suits, claims or demands (including in respect of or for reasonable attorney’s
fees and other expenses) arising on account of or in connection with any matter
or thing or action or failure to act by Indemnitees, or any of them, arising out
of or relating to the Credit Documents or any transaction contemplated thereby,
including without limitation any use by Borrower of any proceeds of the Loans,
except to the extent such liability arises from the willful misconduct or gross
negligence of such Indemnitee. Upon receiving knowledge of any suit, claim or
demand asserted by a third party that Administrative Agent or any Lender
believes is covered by this indemnity, Administrative Agent or such Lender shall
give Borrower notice of the matter and an opportunity to defend it, at
Borrower’s sole cost and expense, with legal counsel reasonably satisfactory to
Administrative Agent or such Lender, as the case may be. Administrative Agent or
such Lender may also require Borrower to defend the matter. Any failure or delay
of Administrative Agent or any Lender to notify Borrower of any such suit, claim
or demand shall not relieve Borrower of its obligations under this Paragraph
8.03 but shall reduce such obligations to the extent of any increase in those
obligations caused solely by any such failure or

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delay which is unreasonable. The obligations of Borrower under this Paragraph
8.03 shall survive the payment and performance of the Obligations and the
termination of this Agreement.

     8.04.      Waivers; Amendments. Any term, covenant, agreement or condition
of this Agreement or any other Credit Document may be amended or waived, and any
consent under this Agreement or any other Credit Document may be given, if such
amendment, waiver or consent is in writing and is signed by Borrower and the
Required Lenders (or Administrative Agent on behalf of the Required Lenders with
the written approval of the Required Lenders); provided, however that:

                (a)      Any amendment, waiver or consent which would (i)
increase the Total Commitment other than as provided in Subparagraph 2.06(a),
(ii) postpone, delay or extend the Revolving Loan Maturity Date (except for
extensions as provided in Paragraph 2.02) or the Term Loan Maturity Date, (iii)
reduce the principal of or interest on the Loans, the Commitment Fees or any
other fees or amounts payable for the account of all Lenders hereunder or
postpone, delay or extend the scheduled date for payment of any such principal,
interest, fees or amounts, (iv) amend this Paragraph 8.04, (v) amend the
definition of Required Lenders, or (vi) waive any Default based on Borrower’s
failure to pay any sum due to all Lenders hereunder, must be in writing and
signed or approved in writing by all Lenders;                      (b)      Any
amendment, waiver or consent which would increase or decrease the Commitment of
any Lender (except for a pro rata decrease in the Commitments of all Lenders)
must be in writing and signed by such Lender; and                      (c)     
Any amendment, waiver or consent which affects the rights or obligations of
Administrative Agent must be in writing and signed by Administrative Agent. 

No failure or delay by Administrative Agent or any Lender in exercising any
right under this Agreement or any other Credit Document shall operate as a
waiver thereof or of any other right hereunder or thereunder nor shall any
single or partial exercise of any such right preclude any other further exercise
thereof or of any other right hereunder or thereunder. Unless otherwise
specified in such waiver or consent, a waiver or consent given hereunder shall
be effective only in the specific instance and for the specific purpose for
which given.

  8.05.      Successors and Assigns.                     (a)      Binding
Effect. This Agreement and the other Credit Documents shall be binding upon and
inure to the benefit of Borrower, Lenders, Administrative Agent, all future
holders of the Notes and their respective successors and permitted assigns,
except that Borrower may not assign or transfer any of its rights or obligations
under any Credit Document without the prior written consent of Administrative
Agent and each Lender.                     (b)      Participations. Any Lender
may at any time sell to one or more banks or other financial institutions
(“Participants”) participating interests in any Loan owing to such Lender, any
Note held by such Lender, any Commitment of such Lender or any other

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  interest of such Lender under this Agreement and the other Credit Documents.
In the event of any such sale by a Lender of participating interests, such
Lender’s obligations under this Agreement shall remain unchanged, such Lender
shall remain solely responsible for the performance thereof, such Lender shall
remain the holder of its Notes for all purposes under this Agreement and
Borrower and Administrative Agent shall continue to deal solely and directly
with such Lender in connection with such Lender’s rights and obligations under
this Agreement. Any agreement pursuant to which any such sale is effected may
require the selling Lender to obtain the consent of the Participant in order for
such Lender to agree in writing to any amendment, waiver or consent of a type
specified in Subparagraph 8.04(a), Subparagraph 8.04(b), Subparagraph 8.04(c) or
Subparagraph 8.04(d) to the extent applicable but may not otherwise require the
selling Lender to obtain the consent of such Participant to any other amendment,
waiver or consent hereunder. Borrower also agrees that any Lender which has
transferred any participating interest in its Commitments or Loans shall,
notwithstanding any suchtransfer, be entitled to the full benefits accorded such
Lender under Paragraph 2.13, Paragraph 2.14, and Paragraph 2.15, as if such
Lender had not made such transfer.                     (c)      Assignments. Any
Lender may, at any time, sell and assign to any Lender or any Eligible Assignee
(individually, an “Assignee Lender”) all or a portion of its rights and
obligations under this Agreement and the other Credit Documents (such a sale and
assignment to be referred to herein as an “Assignment”) pursuant to an
assignment agreement substantially in the form of Exhibit J (an “Assignment
Agreement”), executed by each Assignee Lender and such assignor Lender (an
“Assignor Lender”) and delivered to Administrative Agent for its acceptance and
recording in the Register; provided, however, that: 

      (i)      Without the written consent of Administrative Agent and, if no
Default has occurred and is continuing, Borrower (which consent of
Administrative Agent and Borrower shall not be unreasonably withheld), no Lender
may make any Assignment to any Assignee Lender which is not, immediately prior
to such Assignment, a Lender hereunder or an Affiliate thereof; or      
(ii)      Without the written consent of Administrative Agent and, if no Default
has occurred and is continuing, Borrower (which consent of Administrative Agent
and Borrower shall not be unreasonably withheld), no Lender may make any
Assignment of its Commitment and Loans to any Assignee Lender if, after giving
effect to such Assignment, the Commitment (or, after the termination of the
Commitments, the Loans) of such Lender or such Assignee Lender would be less
than Five Million Dollars ($5,000,000), except that a Lender may make an
Assignment which reduces its Commitment (or, after the termination of the
Commitments, its Loans) to zero without the written consent of Borrower and
Administrative Agent; or       (iii)      Without the written consent of
Administrative Agent and, if no Default has occurred and is continuing, Borrower
(which consent of

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  Administrative Agent and Borrower shall not be unreasonably withheld), no
Lender may make any Assignment of its Commitment and Loans which does not assign
and delegate an equal pro rata interest in such Lender’s Commitment, Loans and
all other rights, duties and obligations of such Lender under this Agreement and
the other Credit Documents.

       Upon such execution, delivery, acceptance and recording of each
Assignment Agreement, from and after the Assignment Effective Date determined
pursuant to such Assignment Agreement, (A) each Assignee Lender thereunder shall
be a Lender hereunder with Commitments and Loans as set forth on Attachment 1 to
such Assignment Agreement (under the caption “Commitment or Loans After
Assignment”) and shall have the rights, duties and obligations of such a Lender
under this Agreement and the other Credit Documents, and (B) the Assignor Lender
thereunder shall be a Lender with Commitment and Loans as set forth on
Attachment 1 to such Assignment Agreement (under the caption “Commitments or
Loans After Assignment”), or, if the Commitment and Loans of the Assignor Lender
has been reduced to 0% and $0, the Assignor Lender shall cease to be a Lender
and to have any obligation to make any Loan; provided, however, that any such
Assignor Lender which ceases to be a Lender shall continue to be entitled to the
benefits of any provision of this Agreement which by its terms survives the
termination of this Agreement. Each Assignment Agreement shall be deemed to
amend Schedule I to the extent, and only to the extent, necessary to reflect the
addition of each Assignee Lender, the deletion of each Assignor Lender which
reduces its Commitment and Loans to 0% and $0 and the resulting adjustment of
Proportionate Shares arising from the purchase by each Assignee Lender of all or
a portion of the rights and obligations of an Assignor Lender under this
Agreement and the other Credit Documents. On or prior to the Assignment
Effective Date determined pursuant to each Assignment Agreement, Borrower, at
its own expense, shall execute and deliver to Administrative Agent, in exchange
for the surrendered Notes, if any, of the Assignor Lender thereunder, a new Note
to the order of each Assignee Lender thereunder that requests such Note (with
each new Revolving Loan Note to be in amounts equal to the applicable
Commitments assumed by such Assignee Lender and each new Term Loan Note to be in
the original principal amount of the Term Loan then held by such Assignee
Lender) and, if the Assignor Lender is continuing as a Lender hereunder, new
Revolving Loan Notes and a Term Loan Note to the order of the Assignor Lender if
so requested by such Assignor Lender (with the new Revolving Loan Notes to be in
amounts equal to the applicable Commitments retained by it and the new Term Loan
Note to be in the original principal amount of the Term Loan retained by it).
Each such new Revolving Loan Note shall be dated the date of this Agreement,
each such new Term Loan Note shall be dated the Revolving Loan Maturity Date,
and each such new Note shall otherwise be in the form of the Note replaced
thereby. The Notes surrendered by the Assignor Lender shall be returned by
Administrative Agent to Borrower marked “replaced”. Each Assignee Lender which
was not previously a Lender hereunder and which is not incorporated under the
laws of the United States of America or a state thereof shall, within three (3)
Business Days of becoming a Lender, deliver to Borrower and Administrative Agent
two duly completed copies of United States Internal Revenue Service Form W-8BEN
or W-8ECI  

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  (or successor applicable form), as the case may be, certifying in each case
that such Lender is entitled to receive payments under this Agreement without
deduction or withholding of any United States federal income taxes.    
              (d)      Grant of Option by Lender to SPC. Notwithstanding
anything to the contrary herein, any Lender (a “Granting Lender”) may grant to a
special purpose funding entity (such entity being an “SPC”) the option to
provide to Borrower all or part of any Loan that such Granting Lender would
otherwise be obligated to make to Borrower pursuant to Paragraph 2.01 or 2.02,
provided that (i) nothing herein shall constitute a Commitment to make any Loan
by any SPC and (ii) if an SPC elects not to exercise such option or otherwise
fails to provide all or any part of such Loan, such Granting Lender shall be
obligated to make such Loan pursuant to the terms hereof. The making of a Loan
by an SPC hereunder shall utilize the Commitment of the respective Granting
Lender to the same extent, and as if, such Loan were made by such Granting
Lender, but shall not release such Granting Lender from any other liability
under the Credit Documents. Each party hereto agrees that no SPC shall be liable
for any indemnity or similar payment obligation under this Agreement (all
liability for which shall remain with the respective Granting Lender). In
furtherance of the foregoing, each party hereto hereby agrees, which agreement
shall survive the termination of this Agreement, that, prior to the date that is
one year and one day after the payment in full of all outstanding senior
Indebtedness of any SPC, it will not institute against, or join any other Person
in instituting against, such SPC any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or similar proceedings under the laws of
the United States of America or any state thereof. In addition, notwithstanding
anything to the contrary contained in this Paragraph 8.05, any SPC may (x) with
notice, but without prior written consent of Administrative Agent or Borrower
and without paying any registration and processing fee, assign all or part of
its interests in any Loans to its respective Granting Lender and (y) subject to
Paragraph 8.10, disclose any non-public information relating to its Loans to any
rating agency, commercial paper dealer or provider of a surety, guarantee or
credit or liquidity enhancement to such SPC. In no event shall Borrower be
obligated to pay to an SPC that has made a Loan any greater amount than Borrower
would have been obligated to pay under this Agreement if the respective Granting
Lender had made such Loan. Borrower, Agents and each other Lender shall continue
to deal solely and directly with, and send notices solely to, the respective
Granting Lender with respect to any Loan made by its SPC and such Granting
Lender shall not transfer or grant to its SPC the right to approve any
amendment, waiver or consent hereunder. This Subparagraph 8.05(d) may not be
amended without the written consent of each Granting Lender.                    
(e)      Register. Administrative Agent shall maintain at its address referred
to in Paragraph 8.01 a copy of each Assignment Agreement delivered to it and a
register (the “Register”) for the recordation of the names and addresses of
Lenders and the Commitments or Loans of each Lender from time to time. The
entries in the Register shall be conclusive in the absence of manifest error,
and Borrower, Administrative Agent and Lenders may treat each Person whose name
is recorded in the Register as the owner of the Loans recorded therein for all
purposes of this Agreement. The Register shall be

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  available for inspection by Borrower or any Lender at any reasonable time and
from time to time upon reasonable prior notice.                     (f)     
Registration. Upon its receipt of an Assignment Agreement executed by an
Assignor Lender and an Assignee Lender (and, to the extent required by
Subparagraph 8.05(c), by Borrower and Administrative Agent) together with
payment to Administrative Agent by Assignor Lender or Assignee Lender of a
registration and processing fee of $3,000, Administrative Agent shall (i)
promptly accept such Assignment Agreement and (ii) on the Assignment Effective
Date determined pursuant thereto record the information contained therein in the
Register and give notice of such acceptance and recordation to Lenders and
Borrower. Administrative Agent may, from time to time at its election, prepare
and deliver to Lenders and Borrower a revised Schedule I reflecting the names,
addresses and respective the Commitments or Loans of all Lenders then parties
hereto.                      (g)      Confidentiality. Subject to Paragraph
8.10, Administrative Agent and Lenders may disclose the Credit Documents and any
financial or other information relating to Borrower or any Subsidiary to each
other or to any potential Participant or Assignee Lender.                      
(h)      Pledges to Federal Reserve Banks. Notwithstanding any other provision
of this Agreement, any Lender may at any time assign all or a portion of its
rights under this Agreement and the other Credit Documents to a Federal Reserve
Bank. No such assignment shall relieve the assigning Lender from its obligations
under this Agreement and the other Credit Documents.

     8.06.      Setoff. In addition to any rights and remedies of Lenders
provided by law, each Lender shall have the right, with the prior consent of
Administrative Agent but without prior notice to or consent of Borrower, any
such notice and consent being expressly waived by Borrower to the extent
permitted by applicable law, upon the occurrence and during the continuance of
an Event of Default, to set-off and apply against the Obligations any amount
owing from such Lender to Borrower. The aforesaid right of set-off may be
exercised by such Lender against Borrower or against any trustee in bankruptcy,
debtor in possession, assignee for the benefit of creditors, receiver or
execution, judgment or attachment creditor of Borrower or against anyone else
claiming through or against Borrower or such trustee in bankruptcy, debtor in
possession, assignee for the benefit of creditors, receiver, or execution,
judgment or attachment creditor, notwithstanding the fact that such right of
set-off may not have been exercised by such Lender at any prior time. Each
Lender agrees promptly to notify Borrower after any such set-off and application
made by such Lender, provided that the failure to give such notice shall not
affect the validity of such set-off and application.

     8.07.      No Third Party Rights. Nothing expressed in or to be implied
from this Agreement is intended to give, or shall be construed to give, any
Person, other than the parties hereto and their permitted successors and assigns
hereunder, any benefit or legal or equitable right, remedy or claim under or by
virtue of this Agreement or under or by virtue of any provision herein.

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     8.08.      Partial Invalidity. If at any time any provision of this
Agreement is or becomes illegal, invalid or unenforceable in any respect under
the law or any jurisdiction, neither the legality, validity or enforceability of
the remaining provisions of this Agreement nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction shall
in any way be affected or impaired thereby.

     8.09.      Jury Trial. EACH OF BORROWER, LENDERS AND ADMINISTRATIVE AGENT,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION,
PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO ANY CREDIT DOCUMENT.

  8.10.      Confidentiality.                     (a)      Neither any Lender
nor Administrative Agent shall make use of, disseminate, or in any way disclose
confidential information with respect to Borrower or any of its Subsidiaries
which is furnished pursuant to this Agreement or under the other Credit
Documents except as authorized by this Agreement. As used in this Paragraph
8.10, “confidential information” shall mean any and all technical and
non-technical information including patent, trade secret, and proprietary
information, techniques, sketches, drawings, models, inventions, know-how,
processes, apparatus, equipment, algorithms, software programs, software source
documents, and formulae related to the current, future and proposed products and
services of Borrower and its Subsidiaries, and includes, without limitation,
their respective information concerning research, experimental work,
development, design details and specifications, engineering, financial
information, procurement requirements, purchasing, manufacturing, customer
lists, business forecasts, sales and merchandising, and marketing plans and
information. Neither Borrower nor any of its Subsidiaries licenses any
intellectual property to any Lender or Administrative Agent under this
Agreement.                     (b)      Each Lender and Administrative Agent is
authorized to disclose confidential information with respect to Borrower or any
of their Subsidiaries: (i) to its own directors, officers, employees, auditors,
counsel and other advisors and to its Affiliates who need to know such
information; (ii) to any other Lender or Administrative Agent; (iii) which is in
the public domain at or subsequent to the time it was received by such Lender or
Administrative Agent through no fault of such recipient, was rightfully in the
possession of such Lender or Administrative Agent free of any obligation of
confidence at or subsequent to the time it was communicated to such recipient by
Borrower or any of its Subsidiaries, or was developed by employees or agents of
such Lender or Administrative Agent independently of and without reference to
any information communicated to such recipient by Borrower or any of its
Subsidiaries; (iv) if required or appropriate in any report, statement or
testimony submitted to any Governmental Authority having or claiming to have
jurisdiction over such Lender or Administrative Agent; (v) if required in
response to any valid order by a court or Governmental Authority; (vi) as
necessary to establish the rights of any party under this Agreement or the other
Credit Documents; (vii) to comply with any Requirement of Law

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applicable to such Lender or Administrative Agent; (viii) to any New Lender,
Assignee Lender or Participant or any prospective New Lender, Assignee Lender or
Participant, provided that such New Lender, Assignee Lender or Participant or
prospective New Lender, Assignee Lender or Participant agrees to be bound by
this Paragraph 8.10; or (ix) otherwise with the prior consent of Borrower;
provided, however, that (A) any Lender or Administrative Agent served with any
court order demanding the disclosure of any such confidential information shall
use reasonable efforts to notify Borrower promptly of such court order if not
prohibited by any Requirement of Law and, if requested by Borrower and not
disadvantageous to such Lender or Administrative Agent, to cooperate with
Borrower in obtaining a protective order restricting such disclosure, and (B)
any disclosure made in violation of this Agreement shall not affect the
obligations of Borrower and their Subsidiaries under this Agreement and the
other Credit Documents. Each Lender and Administrative Agent (x) shall treat all
confidential information with respect to Borrower and its Subsidiaries which is
furnished pursuant to this Agreement or under the other Credit Documents with
the same degree of care as it accords its own confidential information and (y)
represents to Borrower that it exercises reasonable care with respect to its own
confidential information and has policies in place regarding the handling of
confidential information by its employees.

     8.11.      Counterparts. This Agreement may be executed in any number of
identical counterparts, any set of which signed by all the parties hereto shall
be deemed to constitute a complete, executed original for all purposes.

[The first signature page follows.]

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     IN WITNESS WHEREOF, Borrower, Lenders and Administrative Agent have caused
this Agreement to be executed as of the day and year first above written.

BORROWER: ADOBE SYSTEMS INCORPORATED             By:  /s/ MURRAY J. DEMO      

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      Name:      Murray J. Demo        

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      Title:        Sr. Vice President, CFO        

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            By:  /s/ JOHN E. WARNOCK      

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      Name:      John E. Warnock        

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      Title:        Chairman, CEO        

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          ADMINISTRATIVE     AGENT: ABN AMRO BANK N.V.             By:  /s/
JAMIE DILLON      

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      Name:      Jamie Dillon        

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      Title:        Senior Vice President        

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            By:  /s/ NIA MILLER      

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      Name:      Nia Miller        

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      Title:        Vice President        

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          LENDERS: ABN AMRO BANK N.V.             By:  /s/ JAMIE DILLON      

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      Name:      Jamie Dillon        

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      Title:        Senior Vice President        

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            By:  /s/ NIA MILLER      

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      Name:     Nia Miller        

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      Title:        Vice President        

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S-1

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  BANK OF AMERICA, N.A.             By:  /s/ JOUNI KORHONEN      

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      Name:     Jouni Korhonen        

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      Title:        Managing Director        

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            BANK HAPOALIM B.M.             By:  /s/ CONRAD
WAGNER                       /s/ LEWROY HACKETT      

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      Name:     Conrad Wagner                        Lewroy Hackett        

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      Title:        First Vice President                 Vice President        

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            BANK OF MONTREAL             By:  /s/ KANU MODI      

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      Name:     Kanu Modi        

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      Title:        Director        

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            BNP PARIBAS             By:  /s/ C. BETTLES                        
        /s/ TJALLING TERPSTRA      

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      Name:     C. Bettles                                  Tjalling Terpstra  
     

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      Title:        Sr. Vice President                  Vice President        

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            FIRST UNION NATIONAL BANK             By:  /s/ JORGE A. GONZALEZ    
 

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      Name:     Jorge A. Gonzalez        

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      Title:        Senior Vice President        

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      FLEET NATIONAL BANK             By:  /s/ WILLIAM S. ROWE      

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      Name:     William S. Rowe        

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      Title:        Assistant Vice President        

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S-2

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          THE INDUSTRIAL BANK OF JAPAN, LIMITED             By:  /s/ YOSHIHIKO
SUGITA      

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      Name:     Yoshihiko Sugita        

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      Title:       Senior Vice President &   Deputy General Manager      

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            KEYBANK NATIONAL ASSOCIATION             By:  /s/ MARY K. YOUNG    
 

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      Name:     Mary K. Young        

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      Title:        Vice President        

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            MELLON BANK, N.A.             By:  /s/ LAWRENCE C. IVEY      

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      Name:     Lawrence C. Ivey        

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      Title:        Vice President        

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            THE NORTHERN TRUST COMPANY             By:  /s/ ASHISH S. BHAGWAT  
   

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      Name:     Ashish S. Bhagwat        

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      Title:        2nd Vice President        

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      THE ROYAL BANK OF SCOTLAND PLC             By:  /s/ KAREN L. STEFANCIO    
 

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      Name:     Karen L. Stefancio        

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      Title:        Vice President        

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             THE SUMITOMO BANK, LIMITED             By:  /s/ AZAR SHAKERI      

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      Name:     Azar Shakeri        

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      Title:        Vice President and Manager        

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S-3

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          UBS AG      Stamford Branch              By:  /s/ ROBERT H. RILEY III
     

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      Name:     Robert H. Riley III        

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      Title:        Executive Director        

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            By:  /s/ WILFRED SAINT      

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      Name:     Wilfred Saint        

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  Title: Associate Director Loan Portfolio Support, US      

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S-4

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SCHEDULE I

LENDERS

PART A – COMMITMENTS

Lender

Commitment  

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ABN AMRO Bank N.V. $ 9,288,321.21   Bank of Montreal   8,467,153.28   First
Union National Bank   8,467,153.28   KeyBank National Association   8,467,153.28
  Fleet National Bank   8,467,153.28   The Sumitomo Bank, Limited   7,500,000.00
  The Northern Trust Company   7,299,270.07   Bank of America, N.A.  
5,255,474.45   BNP Paribas   5,255,474.45   The Industrial Bank of Japan,  
5,255,474.45   Limited       Mellon Bank, N.A.   5,255,474.45   The Royal Bank
of Scotland   5,255,474.45   plc       UBS AG   4,379,562.04   Stamford Branch  
    Bank Hapoalim B.M.   2,919,708.03         Total $ 91,532,846.72  

I-1

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PART B - ADDRESSES, ETC.

ABN AMRO BANK N.V.   Domestic Lending Office and Euro-Dollar Lending Office:  
            ABN AMRO Bank N.V.             208 South LaSalle Street, Suite 1500
            Chicago, IL 60604-1003   Address for Notices of Borrowing, Notices
of Interest Period Selection and Notices of Term Loan Conversion:              
ABN AMRO Bank N.V.             208 South LaSalle Street, Suite 1500            
Chicago, IL 60604-1003             Attn: Loan Administration             Tel.
No.: (312) 992-5153             Fax No.: (312) 992-5158   Address for all other
notices:               ABN AMRO Bank N.V.             208 South LaSalle Street,
Suite 1500             Chicago, IL 60604-1003             Attn: Credit
Administration             Tel. No.: (312) 992-5110             Fax No.: (312)
992-5111   With a copy of all notices to:               ABN AMRO Bank N.V.
            101 California Street, Suite 4550             San Francisco, CA
94111             Attn: Jamie Dillon             Tel. No: (415) 984-3750
            Fax No: (415) 362-3524             Email: jamie.dillon@abnamro.com  
I-2  

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Wiring Instructions:               ABN AMRO Bank N.V.             New York, New
York             ABA No.: 026009580             F/O ABN AMRO Bank N.V.
            Chicago Branch CPU             Account No.: 650-001-1789-41
            Reference: CPU 00457353 Adobe Systems   I-3  

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BANK OF AMERICA, N.A.   Domestic Lending Office and Euro-Dollar Lending Office:
              Bank of America, N.A.             901 Main Street            
Dallas, TX 75202   Address for Notices of Borrowing, Notices of Interest Period
Selection and Notices of Term Loan Conversion:               Bank of America,
N.A.             901 Main Street             Dallas, TX 75202             Attn:
Brandi Baker             Tel. No.: (214) 209-0592             Fax No.: (214)
290-9417             Email: [___________________]   Address for all other
notices:               Bank of America, N.A.             555 California Street
            San Francisco, CA 94104             Attn: Jouni Korhonen            
Tel. No.: (415) 622-7293             Fax No.: (415) 622-0632             Email:
jouni.j.korhonen@bankofamerica.com   Wiring Instructions:               Bank of
America, N.A.             Dallas, TX             ABA No.: 111000012            
For further credit to: Credit Services             Account No.: 1292000883
            Reference: Adobe Systems Inc.   I-4  

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BANK HAPOALIM B.M.   Domestic Lending Office and Euro-Dollar Lending Office:
            Bank Hapoalim B.M.             San Francisco Branch             250
Montgomery Street, Suite 700             San Francisco, CA 94104   Address for
Notices of Borrowing, Notices of Interest Period Selection and Notices of Term
Loan Conversion:               Bank Hapoalim B.M.             San Francisco
Branch             250 Montgomery Street, Suite 700             San Francisco,
CA 94104             Attn: Fe Ona             Tel. No.: (415) 989-9940 Ext. 130
            Fax No.: (415) 989-9948 or (415) 989-9036             Email:
[____________________]   Address for all other notices:               Bank
Hapoalim B.M.             San Francisco Branch             250 Montgomery
Street, Suite 700             San Francisco, CA 94104             Attn: Chris
Hillard             Tel. No.: (415) 989-9940 Ext. 124             Fax No.: (415)
989-9948             Email: cjhill@aol.com   Wiring Instructions:              
Bank Hapoalim B.M.             New York Branch             ABA No.: 0260-0886-6
            For further credit to: BHSF             Reference: Adobe Systems  
I-5  

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BANK OF MONTREAL   Domestic Lending Office and Euro-Dollar Lending Office:  
            Bank of Montreal             115 South LaSalle Street, 12th Floor
            Chicago, IL 60603   Address for Notices of Borrowing, Notices of
Interest Period Selection and Notices of Term Loan Conversion:              
Bank of Montreal             115 South LaSalle Street, 12th Floor            
Chicago, IL 60603             Attn: Phyllis Lee             Tel. No.: (312)
750-5947             Fax No.: (312) 750-6061 or (312) 750-4345            
Email: phyllis.lee@bmo.com   Address for all other notices:               Bank
of Montreal             115 South LaSalle Street, 12th Floor            
Chicago, IL 60603             Attn: Craig Ingram             Tel. No.: (312)
750-3750             Fax No.: (312) 845-2199             Email:
craig.ingram@bmo.com   Wiring Instructions:               Harris Trust and
Savings Bank             111West Monroe Street             Chicago, IL 60603
            ABA No.: 071000288             Account Name: Bank of Montreal
            Account No.: 124-856-6             Reference: Adobe Systems
Incorporated   I-6  

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BNP PARIBAS   Domestic Lending Office and Euro-Dollar Lending Office:  
            BNP Paribas             725 South Figueroa Street, Suite 2090
            Los Angeles, CA 90017   Address for Notices of Borrowing, Notices of
Interest Period Selection and Notices of Term Loan Conversion:               BNP
Paribas             Treasury Department             180 Montgomery Street
            San Francisco, CA 94104             Attn: Donald A. Hart            
Tel. No.: (415) 956-2511             Fax No.: (415) 989-9041             Email:
[____________________]               with a copy to:               BNP Paribas
            725 S. Figueroa Street             Los Angeles, CA 90017            
Attn: Tjalling Terpstra             Tel. No.: (213) 688-6425             Fax
No.: (213) 488-9602             Email: tjalling.terpstra@americas.bnpparibas.com
              BNP Paribas             Loan Operations             180 Montgomery
Street             San Francisco, CA 94104             Attn: Nancy Mak
            Tel. No.: (415) 956-0707             Fax No.: (415) 956-4230
            Email: [____________________]   I-7  

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Address for all other notices:               BNP Paribas             725 S.
Figueroa Street             Los Angeles, CA 90017             Attn: Tjalling
Terpstra             Tel. No.: (213) 688-6425             Fax No.: (213)
488-9602             Email: tjalling.terpstra@americas.bnpparibas.com   Wiring
Instructions:               Federal Reserve Bank of New York             ABA
No.: 026007689 BNP Paribas             Beneficiary: BNP Paribas, San Francisco
            ACA 14334000176             For further credit to BNP Paribas Los
Angeles             Reference: Adobe Systems, Inc.             Attention: Jenny
Seow   I-8  

--------------------------------------------------------------------------------

FIRST UNION NATIONAL BANK   Domestic Lending Office and Euro-Dollar Lending
Office:               First Union National Bank             301 South College
Street             Charlotte, NC 28288   Address for Notices of Borrowing,
Notices of Interest Period Selection and Notices of Term Loan Conversion:  
            First Union National Bank             301 South College Street, 4th
Floor             Charlotte, NC 28288-1183             Attn: Todd Tucker
            Tel. No.: (704) 383-0905             Fax No.: (704) 383-7999
            Email: todd.tucker@capmark.funb.com   Address for all other notices:
              First Union National Bank             301 South College Street,
5th Floor             Charlotte, NC 28288-0735             Attn: Trip Caldwell
            Tel. No.: (704) 715-1041             Fax No.: (704) 383-7236
            Email: trip.caldwell@funb.com   Wiring Instructions:              
First Union National Bank             Charlotte, NC             ABA No.:
053-000-219             Account No.: 465906-0004568   I-9  

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FLEET NATIONAL BANK     Domestic Lending Office and Euro-Dollar Lending Office:
                Fleet National Bank               100 Federal Street  
            Boston, MA 02110       Address for Notices of Borrowing, Notices of
Interest Period Selection and Notices of Term Loan Conversion:                  
Fleet National Bank               Mail Code: MA DE 10009G             100
Federal Street               Boston, MA 02110               Attn: Pauline
Kowalczyk             Tel. No.: (617) 346-0622             Fax No.: (617)
346-0595             Email: [____________________]     Address for all other
notices:                 Fleet National Bank               Mail Code: MA DE
10009G             100 Federal Street               Boston, MA 02110  
            Attn: William Rowe             Tel. No.: (617) 434-6396            
Fax No.: (617) 434-0819             Email: william_s_rowe@fleet.com     Wiring
Instructions:                   Fleet National Bank               Boston, MA  
            ABA No.: 011 000 138             For further credit to:  Adobe
Systems, Inc.             Account No.: 1510351-03156             Attn:
Commercial Loan Wire Suspense   I-10  

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THE INDUSTRIAL BANK OF JAPAN, LIMITED   Domestic Lending Office and Euro-Dollar
Lending Office:               The Industrial Bank of Japan, Limited            
One Market Street             Spear Tower, Suite 1610             San Francisco,
CA 94105   Address for Notices of Borrowing, Notices of Interest Period
Selection and Notices of Term Loan Conversion:               The Industrial Bank
of Japan, Limited             1251 Avenue of the Americas             New York,
NY 10020-1104             Attn: Richard Emmich or Michelle Fuimo            
Tel. No.: (212) 282-4092 or (212) 282-4063             Fax No.: (212) 282-4478  
Address for all other notices:               The Industrial Bank of Japan,
Limited             One Market Street             Spear Tower, Suite 1610
            San Francisco, CA 94105             Attn: Eric Maubert            
Tel. No.: (415) 693-1805             Fax No.: (415) 982-1917             Email:
emaubert@ibjsf.com   Wiring Instructions:               The Industrial Bank of
Japan, Limited             New York, NY             ABA No. 026-008-345
            Attn: Richard Emmich, Credit Administration #1 Dept.   I-11  

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KEYBANK NATIONAL ASSOCIATION   Domestic Lending Office and Euro-Dollar Lending
Office:               KeyBank National Association             700 Fifth Avenue,
46th Floor             Seattle, WA 98104   Address for Notices of Borrowing,
Notices of Interest Period Selection and Notices of Term Loan Conversion:  
            KeyBank National Association             431 East Park Center
Boulevard             Boise, ID 83706             Attn: Specialty Services Group
            Tel. No.: (800) 297-5518             Fax No.: (800) 297-5495  
Address for all other notices:               KeyBank National Association
            700 Fifth Avenue, 46th Floor             Seattle, WA 98104
            Attn: Mary K. Young             Tel. No.: (206) 684-6085            
Fax No.: (206) 684-6035             Email: mary_k_young@keybank.com   Wiring
Instructions:               KeyBank National Association             Seattle, WA
            ABA No.: 125000574             For further credit to: NW Region
Specialty Services             Account No.: 01500163             Reference:
Adobe Systems Incorporated   I-12  

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MELLON BANK, N.A.   Domestic Lending Office and Euro-Dollar Lending Office:  
            Mellon Bank, N.A.             400 South Hope Street, 5th Floor
            Los Angeles, CA 90071   Address for Notices of Borrowing, Notices of
Interest Period Selection and Notices of Term Loan Conversion:              
Mellon Bank, N.A.             Three Mellon Bank Center, Room #1203            
Pittsburgh, PA 15259             Attn: Lorrie J. Amadio             Tel. No.:
(412) 234-4769             Fax No.: (412) 209-6122             Email:
amadio.lj@mellon.com   Address for all other notices:               Mellon Bank,
N.A.             400 South Hope Street, 5th Floor             Los Angeles, CA
90071             Attn: Edwin Wiest             Tel. No.: (213) 553-9503
            Fax No.: (213) 629-0492             Email: wiest.eh@mellon.com  
Wiring Instructions:               Mellon Bank, N.A.             Pittsburgh, PA
            ABA No.: 0430-0026-1             For further credit to: Loan
Administration             Account No.: 990873800             Reference: Adobe
Systems Incorporated   I-13  

--------------------------------------------------------------------------------

THE NORTHERN TRUST COMPANY   Domestic Lending Office and Euro-Dollar Lending
Office:               The Northern Trust Company             50 South LaSalle
Street             Chicago, IL 60675   Address for Notices of Borrowing, Notices
of Interest Period Selection and Notices of Term Loan Conversion:              
The Northern Trust Company             50 South LaSalle Street            
Chicago, IL 60675             Attn: Linda Honda             Tel. No.: (312)
444-3532             Fax No.: (312) 630-1566             Email:
[____________________]   Address for all other notices:               The
Northern Trust Company             50 South LaSalle Street             Chicago,
IL 60603             Attn: John Brazzale             Tel. No.: (312) 444-7445
            Fax No.: (312) 630-6062             Email: jpbl@ntrs.com   Wiring
Instructions:               The Northern Trust Bank             ABA No.:
071000152             Account No.: 5186401000             For further credit to:
Commercial Loan Dept.             Reference: Adobe   I-14  

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THE ROYAL BANK OF SCOTLAND PLC   Domestic Lending Office and Euro-Dollar Lending
Office:               The Royal Bank of Scotland plc             Wall Street
Plaza             88 Pine Street, 26th Floor             New York, NY 10005  
Address for Notices of Borrowing, Notices of Interest Period Selection and
Notices of Term Loan Conversion:               The Royal Bank of Scotland plc
            Wall Street Plaza             88 Pine Street, 26th Floor            
New York, NY 10005             Attn: Jeanne DeQuar             Tel. No.: (212)
269-1700 Ext. 260             Fax No.: (212) 344-4065             Email:
[____________________]   Address for all other notices:               The Royal
Bank of Scotland plc             Wall Street Plaza             88 Pine Street,
26th Floor             New York, NY 10005             Attn: Karen Stefancic
            Tel. No.: (212) 269-3390             Fax No.: (212) 480-0791
            Email: stefank@rbsny.com   Wiring Instructions:              
Citibank, N.A.             New York, NY             ABA No.: 0210-0008-9
            For further credit to: The Royal Bank of Scotland            
Account No.: 36023239             Reference: Adobe             Attn: DeQuar  
I-15  

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THE SUMITOMO BANK, LIMITED   Domestic Lending Office and Euro-Dollar Lending
Office:               The Sumitomo Bank, Limited             777 South Figueroa
Street, Suite 2600             Los Angeles, CA 90017   Address for Notices of
Borrowing, Notices of Interest Period Selection and Notices of Term Loan
Conversion:               The Sumitomo Bank, Limited             777 South
Figueroa Street, Suite 2600             Los Angeles, CA 90017             Attn:
Miriam Delgado             Tel. No.: (213) 955-0883             Fax No.: (213)
623-6832             Email: [____________________]   Address for all other
notices:               The Sumitomo Bank, Limited             555 California
Street, Suite 3350             San Francisco, CA 94104             Attn: Azar
Shakeri             Tel. No.: (415) 616-3010             Fax No.: (415) 362-6527
            Email: azar_shakeri@sumitomobank.com   Wiring Instructions:  
            The Sumitomo Bank, Limited             Los Angeles Branch
            ABA No.: 122041594             Reference: Adobe             Attn:
Miriam Delgado   I-16  

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UBS AG           Domestic Lending Office and Euro-Dollar Lending Office:        
            UBS AG                 Stamford Branch                 677
Washington Boulevard               Stamford, CT 06912         Address for
Notices of Borrowing, Notices of Interest Period Selection and Notices of Term  
Loan Conversion:                       UBS AG                 Stamford Branch  
              677 Washington Boulevard               Stamford, CT 06912  
            Attn: Philip FitzGerald               Tel. No.: (203) 719-5993  
            Fax No.: (203) 719-4176               Email: [____________________]
        Address for all other notices:                     UBS AG    
            Stamford Branch                 677 Washington Boulevard  
            Stamford, CT 06912               Attn: Robert H. Riley, III  
            Tel. No.: (203) 719-4066               Fax No.: (203) 719-6354  
            Email: robert.riley@wdr.com         Wiring Instructions:          
            UBS AG                 Stamford Branch                 ABA No.:
026007993               CHIPS ABA No.:  799               For further credit
to:  Portfolio Management House Account No. 101-WA-894001-001              
Reference: Adobe Systems     I-17  

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SCHEDULE II

PRICING GRID

 

Applicable Margin

Debt/   Base     EBITDA Pricing Rate LIBOR Commitment Ratio* Level Loans Loans
Fee Percentage

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

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                    < 0.45   1   0%   0.750%   0.175%     > 0.45,         < 0.75
2 0% 0.875% 0.175%   > 0.75,                   < 1.00   3   0%   1.000%   0.175%
    > 1.00,         < 1.50 4 0% 1.125% 0.175%             >1.50   5   0%  
1.375%   0.175%  

*        For a consecutive four-quarter period.

EXPLANATION

1. The Applicable Margin for each Loan and Portion and the Commitment Fee
Percentage will be set for each Pricing Period and will vary depending upon
whether such period is a Level 1 Period, a Level 2 Period, a Level 3 Period, a
Level 4 Period or a Level 5 Period.         2.  The first Pricing Period will
commence on the date of the Credit Agreement and end on September 30, 2000 and
each Pricing Period thereafter will commence on the first day immediately
following the preceding Pricing Period and end on the last day of the month
three months thereafter.         3. Each Pricing Period will be a Level 1
Period, a Level 2 Period, a Level 3 Period, a Level 4 Period or a Level 5 Period
depending upon Borrower’s Debt/EBITDA Ratio for the consecutive four-quarter
period ending one quarter prior to the first day of such Pricing Period.

1.01-1

--------------------------------------------------------------------------------

5.    Examples:

  (a) Borrower’s Debt/EBITDA Ratio for the consecutive four-quarter period
ending May 28, 2000 is 0.80. The Pricing Period of October 1, 2000 – December
31, 2000 will be a Level 3 period.           (b) Borrower’s Debt/EBITDA Ratio
for the consecutive four-quarter period ending August 27, 2000 is 0.60. The
Pricing Period of January 1, 2001 – March 31, 2001 will be a Level 2 period.

1.01-2

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SCHEDULE 3.01

INITIAL CONDITIONS PRECEDENT

A.    Principal Credit Documents.

     (1)     The Credit Agreement, duly executed by Borrower, each Lender and
Administrative Agent; and            (2)     Revolving Loan Notes payable to
each Lender requesting such notes, each duly executed by Borrower.

B.    Borrower Corporate Documents.

     (1)     The Certificate or Articles of Incorporation of Borrower, certified
as of a recent date prior to the Document Delivery Date by the Secretary of
State (or comparable official) of its jurisdiction of incorporation;           
(2)     A Certificate of Good Standing (or comparable certificate) for Borrower,
certified as of a recent date prior to the Document Delivery Date by the
Secretary of State (or comparable official) of its jurisdiction of
incorporation;            (3)     A certificate of the Secretary or an Assistant
Secretary of Borrower, dated the Document Delivery Date, certifying (a) that
attached thereto is a true and correct copy of the Bylaws of Borrower as in
effect on the Document Delivery Date; (b) that attached thereto are true and
correct copies of resolutions duly adopted by the Board of Directors of Borrower
and continuing in effect, which authorize the execution, delivery and
performance by Borrower of this Agreement and the other Credit Documents
executed or to be executed by Borrower and the consummation of the transactions
contemplated hereby and thereby; and (c) that there are no proceedings for the
dissolution or liquidation of Borrower;             (4)     A certificate of the
Secretary or an Assistant Secretary of Borrower, dated the Document Delivery
Date, certifying the incumbency, signatures and authority of the officers of
Borrower authorized to execute, deliver and perform this Agreement, the other
Credit Documents and all other documents, instruments or agreements related
thereto executed or to be executed by Borrower; and             (5)    
Certificates of Good Standing (or comparable certificates) for Borrower,
certified as of a recent date prior to the Document Delivery Date by the
Secretary of State and Franchise Tax Board of California.

C.    Opinions. Favorable written opinions from each of the following counsel
for Borrower, each dated the Document Delivery Date, addressed to Administrative
Agent for the benefit of

3.01-1

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Administrative Agent and Lenders, covering such legal matters as Administrative
Agent may reasonably request and otherwise in form and substance satisfactory to
Administrative Agent and each Lender: 

     (1)     Cooley Godward LLP, outside counsel for Borrower and its
Subsidiaries; and             (2)     Colleen Pouliot, internal general counsel
for Borrower and its Subsidiaries.

D.    Other Items.

     (1)     All fees and expenses payable to Administrative Agent and Lenders
on or prior to the Document Delivery Date (including all fees payable to
Administrative Agent pursuant to the Administrative Agent’s Fee Letter);      
     (2)     All fees and expenses of Administrative Agent’s counsels through
the Document Delivery Date; and            (3)     Such other evidence as
Administrative Agent or any Lender may reasonably request to establish the
accuracy and completeness of the representations and warranties and the
compliance with the terms and conditions contained in this Agreement and the
other Credit Documents.

3.01-2

--------------------------------------------------------------------------------

SCHEDULES 4.01(q)

SUBSIDIARIES

[SEE ATTACHED]

4.01(q)-1

--------------------------------------------------------------------------------

SCHEDULES 5.02(a)

EXISTING INDEBTEDNESS

1. Amended, restated and consolidated master lease agreement between Sumitomo
Bank Leasing and Finance and Adobe Systems Incorporated, dated August 11, 1999
for $142,500,000       2. Note Payable to Robin Henson due 2006 for $604,800    
  3. Bank guarantee from ABN AMRO for the Hamburg office lease contract for
DM92,300       4. Letter of comfort from Adobe Systems Incorporated for the
Munich office lease contract       5. Bank guarantee for the Netherlands office
of DFL139,460       6. Bank guarantee for Adobe Direct taxes in the Netherlands
of DFL7,350       7. Bank guarantee for a car lease in Belgium of BEF88,860    
  8. Bank guarantee for the Italy office of ITL26,510,000       9. Guarantees of
VAT reimbursement in Italy of ITL683,407,279       10. Bank guarantee for the
Switzerland office of CHF66,000       11. Contingent liability regarding turnkey
manufacturing inventory       12. Credit Agreement, dated August 11, 1999 among
Adobe Systems Incorporated as borrower, the financial institutions from time to
time parties thereto as lenders, and ABN AMRO Bank N.V. as administrative agent
for such lenders, under which a revolving credit facility in the amount of
$100,000,000 is available       13. Bank guarantee with for customs in India for
clearance of consignment INR4.2 million       14. American Express Centurion
Bank $200,000 facility to guarantee cash advances on the American Express T&E
card       15. Adobe Systems Incorporated parent guarantee of Adobe
International LP and all international subsidiaries with ABN AMRO Bank       16.
Overdraft lines with ABN AMRO for various Adobe subsidiaries       17. Bankers
Automated Clearing System (BACS) facility for Bank of Scotland transfers in U.K.
        18. Letter of comfort for Post Girot Bank in Sweden for purchasing card
program  

5.02(a)-1

--------------------------------------------------------------------------------

19. Guarantee in favor of Modus Media to cover outstanding obligations of Adobe
International LP.  

5.02(a)-2

--------------------------------------------------------------------------------

SCHEDULES 5.02(b)

EXISTING LIENS

1. Rent deposit for Belgium office of DFL27,855       2. Rent deposit for France
office of FRF255,862       3. Bill guarantees through Banco Bilbao Vizcaya for
judicial requests due to antipiracy actions of ESP6,000,000       4. Rent
deposit for Spain office of ESP1,160,000       5. Rent deposit for Italy office
of ITL1,327,500       6. Rent deposit for Singapore office of SGD53,666       7.
Rent deposit for Korea office of KRW75,091,500       8. Rent deposit for China
office of US$34,026       9. Rent deposit for Argentina office of US$2,700      
10. Rent deposit for Portugal office of EUR2,475  

5.02(b)-1

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SCHEDULES 5.02(e)

EXISTING INVESTMENTS

See Adobe Investment Policy (attached)

5.02(e)-1

--------------------------------------------------------------------------------

EXHIBIT A

NOTICE OF REVOLVING LOAN BORROWING

_______, ____

ABN AMRO Bank N.V. 
  as Administrative Agent
Agency Services
208 South LaSalle Street
Chicago, IL 60604-1003
Attn: Joycelyn Gay

          1.   Reference is made to that certain Credit Agreement, dated as of
August 9, 2000 (the “Credit Agreement”), among Adobe Systems Incorporated
(“Borrower”), the financial institutions listed in Schedule I to the Credit
Agreement (the “Lenders”) and ABN AMRO BANK N.V., as agent for Lenders (in such
capacity, “Administrative Agent”). Unless otherwise indicated, all terms defined
in the Credit Agreement have the same respective meanings when used herein.

          2.   Pursuant to Subparagraph 2.01(b) of the Credit Agreement,
Borrower hereby irrevocably requests a Revolving Loan Borrowing upon the
following terms:

                (a)     The principal amount of the requested Borrowing is to be
$__________;

                (b)     The requested Borrowing is to consist of [ Base Rate or
LIBOR ] Loans;

                (c)     If the requested Borrowing is to consist of LIBOR Loans,
the initial Interest Period for such Loans will
          be __________ month[s];

                (d)     If the requested Borrowing is to consist of LIBOR Loans,
the initial LIBO Rate for such Loans will be based upon
          the [Telerate Page or Reference Bank] Rate; and

                (e)     The date of the requested Borrowing is to be __________,
____.

          3.   Borrower hereby certifies to Administrative Agent and Lenders
that, on the date of this Notice of Revolving Loan Borrowing
     and after giving effect to the requested Revolving Loan Borrowing:

                (a)     The representations and warranties of Borrower set forth
in Paragraph 4.01 of the Credit Agreement and in the
          other Credit Documents are true and correct in all material respects
as if made on such date (except for representations
          and warranties expressly made as of a specified date, which shall be
true as of such date); and

  A-1

--------------------------------------------------------------------------------

                (b)     No Default has occurred and is continuing.

          4.   Please disburse the proceeds of the requested Revolving Loan
Borrowing to _____________________________
__________________________________________________________________________________________________
__________________________________________________________________________.

          IN WITNESS WHEREOF, Borrower has executed this Notice of Revolving
Loan Borrowing on the date set forth above.

                                       
                                          
                                       ADOBE SYSTEMS INCORPORATED

                                       
                                          
                                       By: ___________________________
                                          
                                          
                                           Name: _____________________
                                          
                                          
                                           Title: ______________________

                                       
                                          
                                       By: ___________________________
                                          
                                          
                                           Name: _____________________
                                          
                                          
                                           Title: ______________________

A-2

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EXHIBIT B

EXTENSION REQUEST

[Date]

ABN AMRO Bank N.V. 
  as Administrative Agent
Agency Services
208 South LaSalle Street
Chicago, IL 60604-1003
Attn: Joycelyn Gay

          1.   Reference is made to that certain Credit Agreement, dated as of
August 9, 2000 (the “Credit Agreement”), among Adobe Systems Incorporated
(“Borrower”), the financial institutions listed in Schedule I to the Credit
Agreement (the “Lenders”) and ABN AMRO Bank N.V., as agent for Lenders (in such
capacity, “Administrative Agent” ). Unless otherwise indicated, all terms
defined in the Credit Agreement have the same respective meanings when used
herein.

          2.   Pursuant to Paragraph 2.02(a) of the Credit Agreement, Borrower
hereby irrevocably requests Lenders to extend the Revolving Maturity Date for an
additional 364 days. 

          3.   Borrower hereby certifies to Lenders and Administrative Agent
that, on the date of this Extension Request, and after giving effect to the
requested extension of the Revolving Loan Maturity Date: 

                (a)     The representations and warranties of Borrower set forth
inParagraph 4.01 of the Credit Agreement and in the other 
          Credit Documents are true and correct in all material respects as if
made on such date (except for representations and
          warranties expressly made as of a specified date, which shall be true
as of such date); and 

                (b)     No Default has occurred and is continuing.

B-1

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IN WITNESS WHEREOF, Borrower has executed this Extension Request on the date set
forth above.

 

                                       
                                          
                                       ADOBE SYSTEMS INCORPORATED

                                       
                                          
                                       By: ___________________________
                                          
                                          
                                           Name: _____________________
                                          
                                          
                                           Title: ______________________

                                       
                                          
                                       By: ___________________________
                                          
                                          
                                           Name: _____________________
                                          
                                          
                                           Title: ______________________

--------------------------------------------------------------------------------

CONSENT

The undersigned Lender hereby consents to the above Extension Request:

                                       
                                          
                                       ___________________________________

                                       
                                          
                                       By: ___________________________
                                          
                                          
                                           Name: _____________________
                                          
                                          
                                           Title: ______________________

B-2

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EXHIBIT C

NOTICE OF TERM LOAN BORROWING

_______, ____ 

ABN AMRO Bank N.V. 
  as Administrative Agent
Agency Services
208 South LaSalle Street
Chicago, IL 60604-1003
Attn: Joycelyn Gay

          1.  Reference is made to that certain Credit Agreement, dated as of
August 9, 2000 (the “Credit Agreement”), among Adobe Systems Incorporated
(“Borrower”), the financial institutions listed in Schedule I to the Credit
Agreement (the “Lenders”) and ABN AMRO Bank N.V., as agent for Lenders (in such
capacity, “Administrative Agent”). Unless otherwise indicated, all terms defined
in the Credit Agreement have the same respective meanings when used herein.

          2.  Pursuant to Subparagraph 2.03(b) of the Credit Agreement, Borrower
hereby irrevocably requests the Term Loan Borrowing on the Revolving Loan
Maturity Date upon the following terms: 

                (a)     The principal amount of the requested Borrowing is to be
$__________; and 

                (b)     The requested Borrowing is to consist initially of the
following Portions[s] (specify for each Portion the amount; Type;
          and, for each LIBOR Portion, Interest Period and basis for determining
the initial LIBO Rate Telerate Page or Reference Bank):

Portion
Amount Portion
Type Interest
Period LIBO Rate
Basis

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

$ __________ __________ __ month[s] __________ $ __________ __________ __
month[s] __________ $ __________ __________ __ month[s] __________ $ __________
__________ __ month[s] __________ $ __________ __________ __ month[s] __________

C-1

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          3.   Borrower hereby certifies to Administrative Agent and Lenders
that, on the date of this Notice of Term Loan Borrowing and after giving effect
to the requested Borrowing: 

                (a)     The representations and warranties of Borrower set forth
in Paragraph 4.01 of the Credit Agreement and in the other
          Credit Documents are true and correct in all material respects as if
made on such date (except for representations and
          warranties expressly made as of a specified date, which shall be true
as of such date); and 

                (b)     No Default has occurred and is continuing.

          4.   The proceeds of the Term Loan Borrowing shall be distributed to
the Lenders on the Revolving Loan Maturity Date to repay all Revolving Loans
outstanding on that date. 

          IN WITNESS WHEREOF, Borrower has executed this Notice of Term Loan
Borrowing on the date set forth above.

                                       
                                          
                                       ADOBE SYSTEMS INCORPORATED

                                       
                                          
                                       By: ___________________________
                                          
                                          
                                           Name: _____________________
                                          
                                          
                                           Title: ______________________

                                       
                                          
                                       By: ___________________________
                                          
                                          
                                           Name: _____________________
                                          
                                          
                                           Title: ______________________

C-2

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EXHIBIT D

NOTICE OF INTEREST PERIOD SELECTION

_______, ____

ABN AMRO BANK N.V. 
     as Administrative Agent
Agency Services
208 South LaSalle Street
Chicago, IL 60604-1003
Attn: Joycelyn Gay

          1.  Reference is made to that certain Credit Agreement, dated as of
August 9, 2000 (the “Credit Agreement”), among Adobe Systems Incorporated
(“Borrower”), the financial institutions listed in Schedule I to the Credit
Agreement (the “Lenders”) and ABN AMRO BANK N.V., as agent for Lenders (in such
capacity, “Administrative Agent”). Unless otherwise indicated, all terms defined
in the Credit Agreement have the same respective meanings when used herein.

          2.  Pursuant to Subparagraph 2.04(b) of the Credit Agreement, Borrower
hereby irrevocably selects a new Interest Period for a [Revolving Loan
Borrowing][Portion of the Term Loan Borrowing] as follows: 

                (a)     The [Borrowing][Portion] for which a new Interest Period
is to be selected [consists of LIBOR Loans]
          [is a LIBOR Portion] in the aggregate principal amount of $__________;

                (b)     The current Interest Period for such
[Borrowing][Portion] is _______ month[s] and expires on
          ________, ____;

                (c)     The next Interest Period for such [Borrowing][Portion],
commencing upon the last day of the current
          Interest Period, is to be _________ month[s]; and 

                (d)     The initial LIBO Rate for such Interest Period will be
based upon the [“Telerate Page” or 
          “Reference Bank”] Rate.

D-1

--------------------------------------------------------------------------------

          IN WITNESS WHEREOF, Borrower has executed this Notice of Interest
Period Selection on the date set forth above.

                                       
                                          
                                       

ADOBE SYSTEMS INCORPORATED By: _______________________________

  Name: ______________________ Title: ______________________

 

By: _______________________________

  Name: ______________________ Title: ______________________

D-2

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EXHIBIT E

NOTICE OF TERM LOAN CONVERSION

     _______, ____ 

ABN AMRO BANK N.V. 
     as Administrative Agent
Agency Services
208 South LaSalle Street
Chicago, IL 60604-1003
Attn: Joycelyn Gay

          1.  Reference is made to that certain Credit Agreement, dated as of
August 9, 2000 (the “Credit Agreement”), among Adobe Systems Incorporated
(“Borrower”), the financial institutions listed in Schedule I to the Credit
Agreement (the “Lenders”) and ABN AMRO BANK N.V., as agent for Lenders (in such
capacity, “Administrative Agent”). Unless otherwise indicated, all terms defined
in the Credit Agreement have the same respective meanings when used herein.

          2.  Pursuant to Subparagraph 2.04(c) of the Credit Agreement, Borrower
hereby irrevocably requests to convert a Portion of the Term Loan Borrowing at
the end of its current Interest Period as follows:

                (a)     The Portion of the Term Loan Borrowing to be converted
is the [“Base Rate” or “LIBOR”] Portion in
          the aggregate principal amount of $__________ [which has a current
Interest Period of ____ month[s] expiring
          on __________, ____]; 

                (b)     The Portion to be converted is to be converted into [a]
Portion(s) of [a] Type(s); in [an] amount(s); 
           and, if such Portion(s) is [are] to include a LIBOR Portion(s), the
Interest Period(s) therefor and the basis for
           determining the initial LIBO Rate – Telerate Page or Reference Bank
is [are] as follows:

  Portion
Amount Portion
Type Interest
Period LIBO Rate
Basis

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

$

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

__ month[s]

--------------------------------------------------------------------------------

$

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

__ month[s]

--------------------------------------------------------------------------------

$

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

__ month[s]

--------------------------------------------------------------------------------

$

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

__ month[s]

--------------------------------------------------------------------------------

$

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

__ month[s]

--------------------------------------------------------------------------------

$

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

__ month[s]

--------------------------------------------------------------------------------

E-1

--------------------------------------------------------------------------------

          IN WITNESS WHEREOF, Borrower has executed this Notice of Term Loan
Conversion on the date set forth above.

ADOBE SYSTEMS INCORPORATED     By: _______________________________

  Name: ______________________ Title: ______________________

 

By: _______________________________

  Name: ______________________ Title: ______________________

E-2

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EXHIBIT F

NEW LENDER JOINDER

          THIS NEW LENDER JOINDER (this “New Lender Joinder”), dated as
of____________, ____, is executed by ___________________ (“New Lender”) in favor
of ADOBE SYSTEMS INCORPORATED (“Borrower”) and ABN AMRO BANK N.V., acting as
agent (in such capacity, and each successor thereto in such capacity,
“Administrative Agent”) for the financial institutions which are from time to
time parties to the Credit Agreement referred to in Recital A below
(collectively, the “Lenders”).

RECITALS

          A.   Pursuant to a Credit Agreement dated as of August 9, 2000 (as
amended from time to time, the “Credit Agreement”), among Borrower, Lenders and
Administrative Agent, Lenders have agreed to extend certain credit facilities to
Borrower upon the terms and subject to the conditions set forth therein.

          B.   New Lender is willing to commit to make loans to Borrower as
contemplated by the Credit Agreement.

AGREEMENT

          NOW, THEREFORE, in consideration of the above recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, New Lender hereby agrees with Borrower and Administrative Agent as
follows:

          1.   Definitions. Unless otherwise defined herein, all capitalized
terms used herein and defined in the Credit Agreement shall have the respective
meanings given to those terms in the Credit Agreement.

          2.   Agreement to be Bound. Effective ______ , ______ (the “Commitment
Effective Date”), upon the consent of Borrower and Administrative Agent and
acceptance of this New Lender Joinder by Administrative Agent for recording as
evidenced by delivery of a notice in the form of Attachment 1 hereto, New Lender
hereby accepts a Commitment of ___________ Dollars ($_______________) and agrees
to perform in accordance with their terms all of the obligations which by the
terms of the Credit Agreement and the other Credit Documents are required to be
performed by a Lender with such Commitment.

          3.   Representations, Warranties and Covenants. New Lender further
represents, warrants and covenants with Borrower, Administrative Agent and
Lenders as follows: 

                (a)     New Lender confirms that it has received a copy of the
Credit Agreement and such other documents
          and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this 
          New Lender Joinder.

F-1

--------------------------------------------------------------------------------

               (b)     New Lender will, independently and without reliance upon
Administrative Agent or any other Lender
          and based upon such documents and information as it shall deem
appropriate at the time, continue to make its
          own credit decisions in taking or not taking action under the Credit
Agreement and the other Credit Documents.

               (c)     New Lender appoints and authorizes Administrative Agent
to take such action as Administrative
          Agent on its behalf and to exercise such powers under the Credit
Agreement and the other Credit Documents
          as Administrative Agent is authorized to exercise by the terms
thereof, together with such powers as are 
          reasonably incidental thereto, all in accordance with Section VII of
the Credit Agreement. 

               (d)     Attachment 2 hereto sets forth administrative information
with respect to New Lender.

               (e)     New Lender hereby (     ) DOES (     ) DOES NOT request a
Revolving Loan Note.

          4.   Miscellaneous. This New Lender Joinder shall be governed by, and
construed in accordance with, the laws of the State of California. Paragraph
headings in this New Lender Joinder are for convenience of reference only and
are not part of the substance hereof.

          IN WITNESS WHEREOF, New Lender has caused this New Lender Joinder to
be executed by its duly authorized officer as of the Commitment Effective Date.

  [NEW LENDER] By:

--------------------------------------------------------------------------------

Name:

--------------------------------------------------------------------------------

Title:

--------------------------------------------------------------------------------

 

CONSENTED TO BY:

ADOBE SYSTEMS INCORPORATED

By:

--------------------------------------------------------------------------------

Name:

--------------------------------------------------------------------------------

Title:

--------------------------------------------------------------------------------

 

By:

--------------------------------------------------------------------------------

Name:

--------------------------------------------------------------------------------

Title:

--------------------------------------------------------------------------------

F-2

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

As Administrative Agent

By:

--------------------------------------------------------------------------------

Name:

--------------------------------------------------------------------------------

Title:

--------------------------------------------------------------------------------

ACCEPTED FOR RECORDATION
     IN REGISTER:

 

--------------------------------------------------------------------------------

As Administrative Agent

By:

--------------------------------------------------------------------------------

Name:

--------------------------------------------------------------------------------

Title:

--------------------------------------------------------------------------------

 F-3

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ATTACHMENT 1
TO NEW LENDER JOINDER

FORM OF
COMMITMENT EFFECTIVE NOTICE

          Reference is made to the Credit Agreement, dated as of August 9, 2000,
among ADOBE SYSTEMS INCORPORATED (“Borrower”), the financial institutions
parties thereto (the “Lenders”) and ABN AMRO BANK N.V., as agent for Lenders (in
such capacity, “Administrative Agent”). Administrative Agent hereby acknowledges
receipt of five executed counterparts of a completed New Lender Joinder executed
by__________________(“New Lender”), a copy of which is attached hereto. [Note:
Attach copy of New Lender Joinder.] Terms defined in the Credit Agreement are
used herein as therein defined.

          1.  Pursuant to such New Lender Joinder, you are advised that New
Lender shall have a Commitment of $_______, effective _____________ (“Commitment
Effective Date”).

          2.  Pursuant to such New Lender Joinder, Borrower is required to
deliver to Administrative Agent on or before the Commitment Effective Date a
Revolving Loan Note, dated August 9, 2000, in the principal amount of New
Lender’s Commitment.

          3.  Pursuant to such New Lender Joinder, New Lender is required to pay
$_______, which constitutes New Lender’s Proportionate Share of all outstanding
Revolving Loan Borrowings, to Administrative Agent at or before 12:00 Noon on
the Commitment Effective Date in same day or immediately available funds.
Administrative Agent shall disburse such funds to the other Lenders in the
amount necessary so that each Lender’s outstanding Revolving Loans are equal to
such Lender’s Proportionate Share of all outstanding Revolving Loan Borrowings.

Very truly yours,       ABN AMRO BANK N.V.     as Administrative Agent

          By: _______________________________

  Name: ______________________ Title: ______________________

          By: _______________________________

  Name: ______________________ Title: ______________________

F-1

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ATTACHMENT 2
TO NEW LENDER JOINDER

[New Lender]

Domestic Lending Office: 

 

Euro-Dollar Lending Office: 

 

Address for Notices: 

 

Wiring Instructions:

F-1

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EXHIBIT G

CONSENT TO INCREASE COMMITMENT

          THIS CONSENT TO INCREASE COMMITMENT (this “Consent to Increase
Commitment”), dated as of ____________, ____, is executed by ____________
(“Existing Lender”) in favor of ADOBE SYSTEMS INCORPORATED (“Borrower”) and ABN
AMRO BANK N.V., acting as agent (in such capacity, and each successor thereto in
such capacity, “Administrative Agent”) for the financial institutions which are
from time to time parties to the Credit Agreement referred to in Recital A below
(collectively, the “Lenders”).

RECITALS

          A.   Pursuant to a Credit Agreement dated as of August 9, 2000 (as
amended from time to time, the “Credit Agreement”), among Borrower, Lenders
(including Existing Lender) and Administrative Agent, Lenders have agreed to
extend certain credit facilities to Borrower upon the terms and subject to the
conditions set forth therein.

          B.   Existing Lender is willing to increase its commitment to make
loans to Borrower as contemplated by the Credit Agreement.

AGREEMENT

          NOW, THEREFORE, in consideration of the above recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Existing Lender hereby agrees with Borrower and Administrative
Agent as follows:

          1.   Definitions. Unless otherwise defined herein, all capitalized
terms used herein and defined in the Credit Agreement shall have the respective
meanings given to those terms in the Credit Agreement.

          2.   Agreement to Increase Commitment. Effective ____________,____,
(the “Commitment Effective Date”), upon the consent of Borrower and
Administrative Agent and acceptance of this Consent to Increase Commitment by
Administrative Agent for recording as evidenced by delivery of a notice in the
form of Attachment 1 hereto, Existing Lender hereby agrees to increase its
Commitment to ____________ Dollars ($____ ).

          3.   Delivery of Note. On or prior to the Commitment Effective Date,
Existing Lender will deliver to Administrative Agent the Revolving Loan Note, if
any, payable to Existing Lender and advise Administrative Agent whether Existing
Lender requests a replacement Revolving Loan Note in the amount of Existing
Lender’s increased Commitment.

          4.   Miscellaneous. This Consent to Increase Commitment shall be
governed by, and construed in accordance with, the laws of the State of
California. Paragraph headings in this Consent to Increase Commitment are for
convenience of reference only and are not part of the substance hereof.

G-1

--------------------------------------------------------------------------------

          IN WITNESS WHEREOF, Existing Lender has caused this Consent to
Increase Commitment to be executed by its duly authorized officer as of the
Commitment Effective Date.

  [EXISTING LENDER] By:

--------------------------------------------------------------------------------

Name:

--------------------------------------------------------------------------------

Title:

--------------------------------------------------------------------------------

 

CONSENTED TO BY:

ADOBE SYSTEMS INCORPORATED

By:

--------------------------------------------------------------------------------

Name:

--------------------------------------------------------------------------------

Title:

--------------------------------------------------------------------------------

 

By:

--------------------------------------------------------------------------------

Name:

--------------------------------------------------------------------------------

Title:

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

As Administrative Agent

 

By:

--------------------------------------------------------------------------------

Name:

--------------------------------------------------------------------------------

Title:

--------------------------------------------------------------------------------

ACCEPTED FOR RECORDATION
    IN REGISTER

--------------------------------------------------------------------------------

As Administrative Agent

 

By:

--------------------------------------------------------------------------------

Name:

--------------------------------------------------------------------------------

Title:

--------------------------------------------------------------------------------

G-2

--------------------------------------------------------------------------------

ATTACHMENT 1
TO CONSENT TO INCREASE COMMITMENT

FORM OF
COMMITMENT EFFECTIVE NOTICE

          Reference is made to the Credit Agreement, dated as of August 9, 2000,
among ADOBE SYSTEMS INCORPORATED (“Borrower”), the financial institutions
parties thereto (the “Lenders”) and ABN AMRO BANK N.V., as agent for Lenders (in
such capacity, “Administrative Agent”). Administrative Agent hereby acknowledges
receipt of five executed counterparts of a completed Consent to Increase
Commitment executed by __________________ (“Existing Lender”), a copy of which
is attached hereto. [Note: Attach copy of Consent to Increase Commitment.] Terms
defined in the Credit Agreement are used herein as therein defined.

          1.   Pursuant to such Consent to Increase Commitment, you are advised
that the Commitment of Existing Lender shall increase to $______________ ,
effective ________________ (“Commitment Effective Date”). 

          2.   Pursuant to such Consent to Increase Commitment, Existing Lender
is required to deliver to Administrative Agent on or before the Commitment
Effective Date the Revolving Loan Note, if any, payable to Existing Lender.

          3.   Pursuant to such Consent to Increase Commitment, Borrower is
required to deliver to Administrative Agent on or before the Commitment
Effective Date a Revolving Loan Note, dated August 9, 2000, in the principal
amount of Existing Lender’s increased Commitment.

          4.   Pursuant to such Consent to Increase Commitment, Existing Lender
is required to pay $ _______________, which constitutes the difference between
the principal amount of Existing Lender’s outstanding Revolving Loans and its
Proportionate Share of all outstanding Revolving Loan Borrowings, to
Administrative Agent at or before 12:00 Noon on the Commitment Effective Date in
same day or immediately available funds. Administrative Agent shall disburse
such funds to the other Lenders in the amount necessary so that each Lender’s
outstanding Revolving Loans are equal to such Lender’s Proportionate Share of
all outstanding Revolving Loan Borrowings.

Very truly yours,       ABN AMRO BANK N.V.      as Administrative Agent  

 

  By: _______________________________

  Name: ______________________ Title: ______________________

G-3

--------------------------------------------------------------------------------

                                       
                                          
                                       By: ___________________________
                                          
                                          
                                           Name: _____________________
                                          
                                          
                                           Title: ______________________

G-4

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EXHIBIT H

REVOLVING LOAN NOTE 

$______________                                    
                                                                 
___________________, __________
                                          
                                          
                                                    ________________, ____ 

          FOR VALUE RECEIVED, ADOBE SYSTEMS INCORPORATED, a Delaware corporation
(“Borrower”), hereby promises to pay to the order of ____________________, a
____________________ (“Lender”), the principal sum of
______________________________ DOLLARS ($__________) or such lesser amount as
shall equal the aggregate outstanding principal balance of the Revolving Loans
made by Lender to Borrower pursuant to the Credit Agreement referred to below
(as amended from time to time, the “Credit Agreement”), on or before the
Revolving Loan Maturity Date specified in the Credit Agreement; and to pay
interest on said sum, or such lesser amount, at the rates and on the dates
provided in the Credit Agreement.

          Borrower shall make all payments hereunder, for the account of
Lender’s Applicable Lending Office, to Administrative Agent as indicated in the
Credit Agreement, in lawful money of the United States and in same day or
immediately available funds.

          Borrower hereby authorizes Lender to record on the schedule(s) annexed
to this note the date and amount of each Revolving Loan and of each payment or
prepayment of principal made by Borrower and agrees that all such notations
shall constitute prima facie evidence of the matters noted; provided, however,
that the failure of Lender to make any such notation shall not affect Borrower’s
obligations hereunder.

          This note is one of the Revolving Loan Notes referred to in the Credit
Agreement, dated as of August 9, 2000, among Borrower, Lender and the other
financial institutions from time to time parties thereto (collectively, the
“Lenders”) and ABN AMRO Bank N.V., as agent for Lenders. This note is subject to
the terms of the Credit Agreement, including the rights of prepayment and the
rights of acceleration of maturity set forth therein. Terms used herein have the
meanings assigned to those terms in the Credit Agreement, unless otherwise
defined herein.

        The transfer, sale or assignment of any rights under or interest in this
note is subject to certain restrictions contained in the Credit Agreement,
including Paragraph 8.05 thereof.

        Borrower shall pay all reasonable fees and expenses, including
reasonable attorneys’ fees, incurred by Lender in the enforcement or attempt to
enforce any of Borrower’s obligations hereunder not performed when due. Borrower
hereby waives notice of presentment, demand, protest or notice of any other
kind. This note shall be governed by and construed in accordance with the laws
of the State of California.

H-1

--------------------------------------------------------------------------------

          IN WITNESS WHEREOF, Borrower has executed this Revolving Loan Note on
the date set forth above.

                                       
                                          
                                       ADOBE SYSTEMS INCORPORATED

                                       
                                          
                                       By: ___________________________
                                          
                                          
                                           Name: _____________________
                                          
                                          
                                           Title: ______________________

                                       
                                          
                                       By: ___________________________
                                          
                                          
                                           Name: _____________________
                                          
                                          
                                           Title: ______________________

H-2

--------------------------------------------------------------------------------

LOANS AND PAYMENTS OF PRINCIPAL

        Amount of Unpaid     Type of Amount of Interest Principal Paid Principal
Notation Date Loan Loan Period or Prepaid Balance Made By

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

H-3

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EXHIBIT I

TERM LOAN NOTE

$_______________                                  
                                                                 
____________________,_____
                                          
                                          
                                                     ___________________,____   

          FOR VALUE RECEIVED, ADOBE SYSTEMS INCORPORATED, a Delaware corporation
(“Borrower”), hereby promises to pay to the order of ____________________, a
____________________ (“Lender”), the principal sum of
______________________________ DOLLARS ($__________), payable on the Term Loan
Maturity Date; and to pay interest on the outstanding balance of said sum at the
rates and on the dates provided in the Credit Agreement referred to below (as
amended from time to time, the “Credit Agreement”).

          Borrower shall make all payments hereunder, for the account of
Lender’s Applicable Lending Office, to Administrative Agent as indicated in the
Credit Agreement, in lawful money of the United States and in same day or
immediately available funds.

          This note is one of the Term Loan Notes referred to in the Credit
Agreement, dated as of August 9, 2000, among Borrower, Lender and the other
financial institutions from time to time parties thereto (collectively, the
“Lenders”) and ABN AMRO Bank N.V., as agent for Lenders. This note is subject to
the terms of the Credit Agreement, including the rights of prepayment and the
rights of acceleration of maturity set forth therein. Terms used herein have the
meanings assigned to those terms in the Credit Agreement, unless otherwise
defined herein.

          The transfer, sale or assignment of any rights under or interest in
this note is subject to certain restrictions contained in the Credit Agreement,
including Paragraph 8.05 thereof. 

          Borrower shall pay all reasonable fees and expenses, including
reasonable attorneys’ fees, incurred by Lender in the enforcement or attempt to
enforce any of Borrower’s obligations hereunder not performed when due. Borrower
hereby waives notice of presentment, demand, protest or notice of any other
kind. This note shall be governed by and construed in accordance with the laws
of the State of California.

          IN WITNESS WHEREOF, Borrower has executed this Term Loan Note on the
date set forth above.

                                                                                
                             ADOBE SYSTEMS INCORPORATED

                                                                                
                             By : ________________________________
                                          
                                                                           Name:
__________________________
                                          
                                                                          
Title:   __________________________

 

                                                                                
                             By:  ________________________________

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                             Name: _______________________________ 

                                                                                
                             Title:   _______________________________  

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EXHIBIT J

ASSIGNMENT AGREEMENT

     THIS ASSIGNMENT AGREEMENT, dated as of the date set forth at the top of
Attachment 1 hereto, by and among: 

              (1)     The bank designated under item A of Attachment 1 hereto as
the Assignor Lender
     (“Assignor Lender”); and

              (2)     Each bank designated under item B of Attachment 1 hereto
as an Assignee Lender (individually, an
      “Assignee Lender”).

RECITALS

     A.     Assignor Lender is one of Lenders which is a party to the Credit
Agreement dated as of August 9, 2000, by and among ADOBE SYSTEMS INCORPORATED
(“Borrower”), Assignor Lender and the other financial institutions parties
thereto (collectively, the “Lenders”) and ABN AMRO BANK N.V., as agent for
Lenders (in such capacity, “Administrative Agent”). (Such credit agreement, as
amended, supplemented or otherwise modified in accordance with its terms from
time to time to be referred to herein as the “Credit Agreement”).

     B.     Assignor Lender wishes to sell, and Assignee Lender wishes to
purchase, all or a portion of Assignor Lender’s rights under the Credit
Agreement pursuant to Subparagraph 8.05(c) of the Credit Agreement.

AGREEMENT

    Now, therefore, the parties hereto hereby agree as follows:

     1.     Definitions. Except as otherwise defined in this Assignment
Agreement, all capitalized terms used herein and defined in the Credit Agreement
have the respective meanings given to those terms in the Credit Agreement.

     2.     Sale and Assignment. Subject to the terms and conditions of this
Assignment Agreement, Assignor Lender hereby agrees to sell, assign and
delegate, without recourse except to the extent of its representations and
warranties expressly set forth herein, to each Assignee Lender and each Assignee
Lender hereby agrees to purchase, accept and assume the rights, obligations and
duties of a Lender under the Credit Agreement and the other Credit Documents
having Commitments and Loans as set forth under the caption “Commitments or
Loans Transferred” opposite such Assignee Lender’s name on Attachment 1 hereto
and corresponding Proportionate Shares. Such sale, assignment and delegation
shall become effective on the date designated in Attachment 1 hereto (the
“Assignment Effective Date”), which date shall be, unless Administrative Agent
shall otherwise consent, at least five (5) Business Days after the date
following the date counterparts of this Assignment Agreement are delivered to
Administrative Agent in accordance with Paragraph 3 hereof.

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     3.     Assignment Effective Notice. Upon (a) receipt by Administrative
Agent of five (5) counterparts of this Assignment Agreement (to each of which is
attached a fully completed Attachment 1), each of which has been executed by
Assignor Lender and each Assignee Lender (and, to the extent required by
Subparagraph 8.05(c) of the Credit Agreement, by Borrower and Administrative
Agent) and (b) payment to Administrative Agent of the registration and
processing fee specified in Subparagraph 8.05(f) of the Credit Agreement by
Assignor Lender, Administrative Agent will transmit to Borrower, Assignor Lender
and each Assignee Lender an Assignment Effective Notice substantially in the
form of Attachment 2 hereto, fully completed (an “Assignment Effective
Notice”). 

     4.     Assignment Effective Date. At or before 12:00 noon (local time of
Assignor Lender) on the Assignment Effective Date, each Assignee Lender shall
pay to Assignor Lender, in immediately available or same day funds, an amount
equal to the purchase price, as agreed between Assignor Lender and such Assignee
Lender (the “Purchase Price”), for the Commitments, Loans and Proportionate
Shares purchased by such Assignee Lender hereunder. Effective upon receipt by
Assignor Lender of the Purchase Price payable by each Assignee Lender, the sale,
assignment and delegation to such Assignee Lender of such Commitments, Loans and
Proportionate Shares as described in Paragraph 2 hereof shall become effective. 

     5.     Payments After the Assignment Effective Date. Assignor Lender and
each Assignee Lender hereby agree that Administrative Agent shall, and hereby
authorize and direct Administrative Agent to, allocate amounts payable under the
Credit Agreement and the other Credit Documents as follows: 

             (a)      All principal payments made after the Assignment Effective
Date with respect to each Commitment, Loan
     and Proportionate Share assigned to an Assignee Lender pursuant to this
Assignment Agreement shall be payable
     to such Assignee Lender.      

             (b)      All interest, fees and other amounts accrued after the
Assignment Effective Date with respect to each 
     Commitment, Loan and Proportionate Share assigned to an Assignee Lender
pursuant to this Assignment
     Agreement shall be payable to such Assignee Lender.

Assignor Lender and each Assignee Lender shall make any separate arrangements
between themselves which they deem appropriate with respect to payments between
them of amounts paid under the Credit Documents on account of the Commitments,
Loans and Proportionate Shares assigned to such Assignee Lender, and neither
Administrative Agent nor Borrower shall have any responsibility to effect or
carry out such separate arrangements.

     6.     Delivery of Notes. On or prior to the Assignment Effective Date,
Assignor Lender will deliver to Administrative Agent the Notes, if any, payable
to Assignor Lender. On or prior to the Assignment Effective Date, Borrower will,
if so requested by Assignee Lender(s) and Assignor Lenders, deliver to
Administrative Agent new Notes for each Assignee Lender and Assignor Lender, in
each case in principal amounts reflecting, in accordance with the Credit
Agreement, their respective Commitments and Loans (as adjusted pursuant to this
Assignment Agreement). Each such new Note shall be dated as provided in
Subparagraph 8.05(c) of the

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Credit Agreement.     Promptly after the Assignment Effective Date,
Administrative Agent will send to each of Assignor Lender and the Assignee
Lenders its new Notes and will send to Borrower the superseded Notes payable to
Assignor Lender, marked “Replaced.” 

     7.    Delivery of Copies of Credit Documents. Concurrently with the
execution and delivery hereof, Assignor Lender will provide to each Assignee
Lender (if it is not already a Lender party to the Credit Agreement) conformed
copies of all documents delivered to Assignor Lender on or prior to the Closing
Date in satisfaction of the conditions precedent set forth in the Credit
Agreement.

     8.      Further Assurances. Each of the parties to this Assignment
Agreement agrees that at any time and from time to time upon the written request
of any other party, it will execute and deliver such further documents and do
such further acts and things as such other party may reasonably request in order
to effect the purposes of this Assignment Agreement.

     9.      Further Representations, Warranties and Covenants. Assignor Lender
and each Assignee Lender further represent and warrant to and covenant with each
other, Administrative Agent and Lenders as follows: 

             (a)     Other than the representation and warranty that it is the
legal and beneficial owner of the interest being
     assigned hereby free and clear of any adverse claim, Assignor Lender makes
no representation or warranty and   
     assumes no responsibility with respect to any statements, warranties or
representations made in or in connection
     with the Credit Agreement or the other Credit Documents or the execution,
legality, validity, enforceability,
     genuineness, sufficiency or value of the Credit Agreement or the other
Credit Documents furnished or the
     collateral or any security interest therein.

             (b)     Assignor Lender makes no representation or warranty and
assumes no responsibility with respect to the
      financial condition of Borrower or any of its obligations under the Credit
Agreement or any other Credit   
      Documents.

             (c)     Each Assignee Lender confirms that it has received a copy
of the Credit Agreement and such other
     documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into
     this Assignment Agreement. 

             (d)     Each Assignee Lender will, independently and without
reliance upon Administrative Agent, Assignor
      Lender or any other Lender and based upon such documents and information
as it shall deem appropriate at the
      time, continue to make its own credit decisions in taking or not taking
action under the Credit Agreement and the
      other Credit Documents.

             (e)      Each Assignee Lender appoints and authorizes
Administrative Agent to take such action as
      Administrative Agent on its behalf and to exercise such powers under the
Credit Agreement and the other Credit
      Documents as Administrative Agent is authorized to exercise by the terms
thereof, together with such powers as
      are reasonably incidental thereto, all in accordance with Section VII of
the Credit Agreement.

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              (f)      Each Assignee Lender agrees that it will perform in
accordance with their terms all of the obligations
      which by the terms of the Credit Agreement and the other Credit Documents
are required to be performed by it as
      a Lender.

              (g)      Attachment 1 hereto sets forth administrative information
with respect to each Assignee Lender.

     10.     Effect of this Assignment Agreement. On and after the Assignment
Effective Date, (a) each Assignee Lender shall be a Lender with Commitments and
Loans equal to the Commitments and Loans set forth under the caption
“Commitments or Loans After Assignment” opposite such Assignee Lender’s name on
Attachment 1 hereto and corresponding Proportionate Shares and shall have the
rights, duties and obligations of such a Lender under the Credit Agreement and
the other Credit Documents and (b) Assignor Lender shall be a Lender with
Commitments and Loans equal to the Commitments and Loans set forth under the
caption “Commitments or Loans After Assignment” opposite Assignor Lender’s name
on Attachment 1 hereto and corresponding Proportionate Shares and shall have the
rights, duties and obligations of such a Lender under the Credit Agreement and
the other Credit Documents, or, if the Commitments and Loans of Assignor Lender
have been reduced to $0, Assignor Lender shall cease to be a Lender and shall
have no further obligation to make any Loans.

     11.     Miscellaneous. This Assignment Agreement shall be governed by, and
construed in accordance with, the laws of the State of California. Paragraph
headings in this Assignment Agreement are for convenience of reference only and
are not part of the substance hereof.

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          IN WITNESS WHEREOF, the parties hereto have caused this Assignment
Agreement to be executed by their respective duly authorized officers as of the
date set forth in Attachment 1 hereto.

                                       
                                                   
_______________________________________________, as
                                          
                                                 Assignor Lender
                                          
                                                            
                                          
                                                 By:      
__________________________________________ 
                                          
                                                              Name:  
___________________________________
                                          
                                                              Title:    
___________________________________
                                          
                                                            
                                          
                                                
____________________________________________, as an
                                          
                                                 Assignee Lender
                                          
                                                            
                                          
                                                 By:     
____________________________________________
                                          
                                                              Name:   
____________________________________
                                          
                                                              Title:     
____________________________________
                                          
                                                              
                                          
                                          
      ____________________________________________, as an
                                          
                                                 Assignee Lender
                                          
                                                                  
                                          
                                                 By:   
 ____________________________________________
                                          
                                                              Name:    
___________________________________
                                          
                                                              Title:      
___________________________________
                                          
                                                     
                                          
                                          
      ____________________________________________, as an  
                                          
                                                 Assignee Lender 
                                          
                                          
                                          
                                          
                                                 By:  
  ____________________________________________
                                          
                                                               Name:   
___________________________________
                                          
                                                               Title:     
___________________________________

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CONSENTED TO AND ACKNOWLEDGED BY: 

ADOBE SYSTEMS INCORPORATED

By:    ___________________________________ 
         Name:  _____________________________
         Title:    _____________________________    

By:    ___________________________________
         Name:  _____________________________
         Title:    _____________________________

________________________________________,
As Administrative Agent

By:    ___________________________________ 
         Name:  _____________________________
         Title:    _____________________________   

ACCEPTED FOR RECORDATION
  IN REGISTER:

________________________________________,
As Administrative Agent

By:    ____________________________________ 
         Name:  ______________________________ 
         Title:    ______________________________  

J-6

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ATTACHMENT 1
TO ASSIGNMENT AGREEMENT

______________, ____

ATTACHMENT 1
TO ASSIGNMENT AGREEMENT

PART A

Commitments or Loans Commitments or Loans Assigned After Assignment

--------------------------------------------------------------------------------

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Commitment Loan Commitment Loan

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Assignor Lender:                          

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                          ______________   $ __________   $ __________   $
__________   $ __________                               Assignee Lenders:      
                   

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                                                      ______________   $
__________   $ __________   $ __________   $ __________   ______________   $
__________   $ __________   $ __________   $ __________   ______________   $
__________   $ __________   $ __________   $ __________   ______________   $
__________   $ __________   $ __________   $ __________  

J(1)-1

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PART B

[Assignee Lender]

Domestic Lending Office: 

 

 

 

Euro-Dollar Lending Office:

 

 

 

 

 Address for Notices: 

 

 

 

Wiring Instructions:

J(1)-2

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C.
   ASSIGNMENT EFFECTIVE DATE: 

______________________, ______

J(1)-2

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ATTACHMENT 2

TO ASSIGNMENT AGREEMENT

 

FORM OF

ASSIGNMENT EFFECTIVE NOTICE

        Reference is made to the Credit Agreement, dated as of August 9, 2000,
among ADOBE SYSTEMS INCORPORATED (“Borrower”), the financial institutions
parties thereto (the “Lenders”) and ABN AMRO BANK N.V., as agent for Lenders (in
such capacity, “Administrative Agent”). Administrative Agent hereby acknowledges
receipt of five executed counterparts of a completed Assignment Agreement, a
copy of which is attached hereto. [Note: Attach copy of Assignment Agreement.]
Terms defined in such Assignment Agreement are used herein as therein defined.

        1.     Pursuant to such Assignment Agreement, you are advised that the
Assignment Effective Date will be __________.

        2.     Pursuant to such Assignment Agreement, Assignor Lender is
required to deliver to Administrative Agent on or before the Assignment
Effective Date the Note, if any, payable to Assignor Lender.

        3.     Pursuant to such Assignment Agreement, Borrower is required to
deliver to Administrative Agent on or before the Assignment Effective Date the
following Notes, each dated _________________ [Insert appropriate date]: 

               [Describe each new Note, if any, for Assignor Lender and each
Assignee Lender as to principal amount.] 

        4.     Pursuant to such Assignment Agreement, each Assignee Lender is
required to pay its Purchase Price to Assignor Lender at or before 12:00 Noon on
the Assignment Effective Date in immediately available funds.

                                       
                                          Very truly yours,

                                       
                                          ABN AMRO BANK N.V. 

                                       
                                               as Administrative Agent

                                     
                                            ; By:     
________________________________

                                       
                                                       Name:   
_________________________

                                       
                                                       Title:     
_________________________

 

J(2)-1

 

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