Document:

First Amendment to the Perferred Stock Agreement

 EXHIBIT 4.2 
  

FIRST AMENDMENT 
  
 to the 
  
 PREFERRED STOCK RIGHTS AGREEMENT 
  
 between 
  
 J.D. EDWARDS
& COMPANY 
  
 and 
  
 COMPUTERSHARE TRUST COMPANY, INC. 
  
 This First Amendment to the Preferred Stock Rights Agreement (the
“Amendment”) is made and entered into as of June 1, 2003 between J.D. EDWARDS & COMPANY, a Delaware corporation (the “Company”), and COMPUTERSHARE TRUST COMPANY, INC., as Rights Agent (the “Rights
Agent”). 
  
 R E C I T A L S 
  
 WHEREAS, the Company and the Rights Agent entered into the Preferred Stock
Rights Agreement dated as of October 22, 2001 (the “Rights Agreement”); 
  
 WHEREAS, Section 27 of the Rights Agreement provides that, prior to the Distribution Date (as defined in the Rights Agreement), the Company may supplement or amend the Rights Agreement in any respect without the
approval of any holders of Rights; 
  
 WHEREAS, the Company,
PeopleSoft, Inc., a Delaware corporation (“PeopleSoft”), and Jersey Acquisition Corporation, a Delaware corporation and a wholly-owned subsidiary of PeopleSoft (“Sub”), intend to enter into an Agreement and Plan of
Merger (the “Merger Agreement”) pursuant to which, among other things, Sub will merge with and into the Company (the “Merger”) and the outstanding shares of Common Stock of the Company will be converted into shares
of Common Stock of PeopleSoft, upon the terms and subject to the conditions of the Merger Agreement; 
  
 WHEREAS, concurrent with the Merger Agreement, PeopleSoft and certain stockholders of the Company (the “Voting Agreement Holders”),
intend to enter into Irrevocable Proxy and Voting Agreements (the “Company Voting Agreements”), pursuant to which, among other things, the Voting Agreement Holders will vote in favor of the Merger; 
  
 WHEREAS, on June 1, 2003, the Board of Directors of the Company resolved to
amend the Rights Agreement to exempt the Merger, the Merger Agreement, the Company Voting Agreements 

 and the other transactions specifically contemplated thereby from the application of the Rights Agreement; and

  
 WHEREAS, the Company intends to modify the terms of the Rights
Agreement in certain respects as set forth herein, and in connection therewith, is entering into this Amendment and directing the Rights Agent to enter into this Amendment. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereto agree as follows: 
  
 1. Capitalized Terms. All
capitalized, undefined terms used in this Amendment shall have the meanings assigned thereto in the Rights Agreement. 
  
 2. Amendments. 
  
 (a) Section 1(a) of the Rights Agreement is hereby amended by adding the following new paragraph to the end of Section 1(a): 
  
 “Notwithstanding anything in this Agreement that might otherwise be
deemed to the contrary, neither PeopleSoft, nor Sub, nor any of the Voting Agreement Holders, nor any of such parties’ Affiliates or Associates shall be deemed to be an Acquiring Person solely by reason of: (i) the approval, execution or
delivery of the Merger Agreement, including any amendment or supplement thereto, or the Company Voting Agreements; or (ii) the consummation of the transactions specifically contemplated thereby, each upon the terms and subject to the conditions of
the Merger Agreement.” 
  
 (b) Section 1(k) of the Rights
Agreement is hereby amended by adding the following new paragraph to the end of Section 1(k): 
  
 “Notwithstanding anything in this Agreement that might otherwise be deemed to the contrary, no Distribution Date shall be deemed to have occurred by reason of: (i) the approval, execution or delivery of the
Merger Agreement, including any amendment or supplement thereto, or the Company Voting Agreements; or (ii) the consummation of the transactions specifically contemplated thereby, each upon the terms and subject to the conditions of the Merger
Agreement.” 
  
 (c) Section 1(nn) of the Rights Agreement is
hereby amended by adding the following new paragraph to the end of Section 1(nn): 
  
 “Notwithstanding anything in this Agreement that might otherwise be deemed to the contrary, no Triggering Event shall be deemed to have occurred by reason of: (i) the approval, execution or delivery of the Merger
Agreement, including any amendment or supplement thereto, or the Company Voting Agreements; or (ii) the consummation of the transactions specifically contemplated thereby, each upon the terms and subject to the conditions of the Merger
Agreement.” 
  
 3. Effective Date. This Amendment
shall become effective as of the date first above written but such effectiveness is contingent upon (a) the execution and delivery of the Merger 

 Agreement and/or Company Voting Agreements by the Company and (b) the authorization by the Board of Directors of the
Company approving the Merger and other transactions contemplated by the Merger Agreement. 
  
 4. Effect of Amendment. Except as expressly provided herein, the Rights Agreement shall be and remain in full force and effect. 
  
 5. Governing Law. This Amendment shall be governed by, construed and enforced in accordance with the laws of the
State of Delaware without reference to the conflicts or choice of law principles thereof. 
  
 6. Counterparts. This Amendment may be executed in separate counterparts, each of which when executed and delivered is an original but all of which taken together constitute one and the same instrument.

  
 7. Fax Transmission. A facsimile, telecopy or other
reproduction of this Amendment may be executed by one or more parties hereto, and an executed copy of this Amendment may be delivered by one or more parties hereto by facsimile or similar instantaneous electronic transmission device pursuant to
which the signature of or on behalf of such party can be seen, and such execution and delivery shall be considered valid, binding and effective for all purposes. At the request of any party hereto, all parties hereto agree to execute an original of
the Amendment as well as any facsimile, telecopy or other reproduction thereof. 
  
 8. Certification. The undersigned officer of the Company, being an appropriate officer of the Company and authorized to do so by resolution of the Board of Directors of the Company duly adopted and approved at
a meeting held June 1, 2003, hereby certifies to the Rights Agent that this amendment is in compliance with Section 27 of the Rights Agreement. 
  

 IN WITNESS WHEREOF, the Company and the Rights Agent have caused this Amendment to be duly executed as of
the day first above written. 
  

	 J.D. EDWARDS & COMPANY

		
	 By:
	 	 /s/  RICHARD E. ALLEN

	 Name:
	 	 Richard E. Allen

	 Title:
	 	 Executive Vice President and Chief Financial Officer

	
	 COMPUTERSHARE TRUST COMPANY, INC.

		
	 By:
	 	 /s/  KELLIE GWINN

	 Name:
	 	 Kellie Gwinn

	 Title:
	 	 Vice President/Trust Officer

	
	 COMPUTERSHARE TRUST COMPANY, INC.

		
	 By:
	 	 /s/  THERESA HENSHAW

	 Name:
	 	 Theresa Henshaw

	 Title:
	 	 Operations Manager/Trust Officer<PAGE>

                                                                     EXHIBIT 4.3

                               JOHNSON & JOHNSON

                             2000 STOCK OPTION PLAN
                         (AS AMENDED FEBRUARY 10, 2003)

1.  PURPOSE

     The purpose of the Johnson & Johnson 2000 Stock Option Plan (the "Plan") is
to promote the interests of Johnson & Johnson (the "Company") by ensuring
continuity of management and increased incentive on the part of officers and
executive employees responsible for major contributions to effective management,
through facilitating their acquisition of an equity interest in the Company on
reasonable terms.

2.  ADMINISTRATION

     The Plan shall be administered by the Compensation Committee of the Board
of Directors (the "Committee"). The Committee shall consist of not less than
three directors. No person shall be eligible to continue to serve as a member of
such Committee unless such person is a "Non-Employee Director" within the
meaning of Rule 16b-3 of the General Rules and Regulations under the Securities
Exchange Act of 1934, as amended, and an "outside director" within the meaning
of Section 162(m) of the Internal Revenue Code of 1986, as amended (the
"Internal Revenue Code"). The Committee shall have the power to select
optionees, to establish the number of shares and other terms applicable to each
such option, to construe the provisions of the Plan, and to adopt rules and
regulations governing the administration of the Plan.

     The Board of Directors, within its discretion, shall have authority to
amend the Plan and the terms of any option issued hereunder without the
necessity of obtaining further approval of the shareowners, unless such approval
is required by law. Notwithstanding the foregoing, except for any stock split,
adjustment or other change in the corporate structure or shares of the Company
as contemplated under Section 6(A)(v) hereof, the Company shall neither lower
the exercise price of any option granted under the Plan nor grant any option
hereunder in replacement of an option which had previously been granted at a
higher exercise price, without the approval of the shareowners.

3.  ELIGIBILITY

     Those eligible to participate in the Plan will be selected by the Committee
from the following:

          (1) Directors.

          (2) Officers and other key employees of the Company and its domestic
     subsidiaries.

          (3) Key employees of subsidiaries outside the United States.

          (4) Key employees of a joint venture operation of the Company or its
     subsidiaries and key employees of joint venture partners who are assigned
     to such a joint venture.

     In all cases, optionees shall be selected on the basis of demonstrated
ability to contribute substantially to the effective management or financial
performance of the Company or its subsidiaries.

     In no event shall an option be granted to any individual who, immediately
after such option is granted, is considered to own stock possessing more than
10% of the combined voting power of all classes of stock of Johnson & Johnson or
any of its subsidiaries within the meaning of Section 422 of the Internal
Revenue Code.

4.  ALLOTMENT OF SHARES

     The amount of Common Stock of the Company (par value $1.00 per share) that
may be made subject to grants of options under the Plan in any calendar year
shall not exceed an amount equal to 1.6 percent of the issued shares of the
Company's Common Stock (including Treasury Shares) on January 1 of such year,
plus

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<PAGE>

(i) the number of shares that were available for grants in the previous year
under the Plan but were not made subject to a grant in such previous year and
(ii) the number of shares that were covered by options granted under the Plan
which options lapsed, expired or terminated in the previous year without being
exercised. Notwithstanding the foregoing, no more than 75 million shares in the
aggregate shall be available for issuance as incentive stock options under the
Plan.

     The total number of shares which may be awarded under the Plan to any
optionee in any one year shall not exceed the lesser of (x) 5% of the total
shares allotted to the Plan for such year and (y) 2 million shares. The
Committee may, in its discretion, issue upon exercise of any option Treasury
Shares or authorized but unissued shares.

5.  EFFECTIVE DATE AND TERM OF PLAN

     The Plan, if approved by the shareowners of the Company, shall become
effective on April 19, 2000. No option shall be granted pursuant to this Plan
later than April 18, 2005, but the rights of optionees under options theretofore
granted to them will not be affected, and all unexpired options will continue in
force and operation thereafter, except as such options may lapse or be
terminated in accordance with their terms and conditions.

6.  TERMS AND CONDITIONS

     A.  ALL OPTIONS

         The following shall apply to all options granted under the Plan:

       (i) Option Price

              The option price per share for each stock option shall be
         determined by the Committee and shall not be less than the fair market
         value on the date the option is granted. The fair market value shall be
         determined as prescribed by the Internal Revenue Code and Regulations.

       (ii) Time of Exercise of Option

              The Committee shall establish the time or times within the option
         period when the stock option may be exercised in whole or in such parts
         as may be specified from time to time by the Committee. With respect to
         an optionee whose employment has terminated by reason of death,
         disability or retirement, the Committee may in its discretion
         accelerate the time or times when any particular stock option held by
         said optionee may be so exercised so that such time or times are
         earlier than those originally provided in said option. In all cases
         exercise of a stock option shall be subject to the provisions of
         Section 6B(ii) or 6C(iii), as the case may be. The Committee shall
         determine, either at the time of grant or later, whether and to what
         extent and under what circumstances, the delivery of shares issuable in
         connection with the exercise of a non-qualified option may be deferred
         at the election of the optionee.

       (iii) Payment

              The entire option price may be paid at the time the option is
         exercised. When an option is exercised prior to termination of
         employment, the Committee shall have the discretion to arrange for the
         payment of such price, in whole or in part, in installments. In such
         cases, the Committee shall obtain such evidence of the optionee's
         obligation, establish such interest rate and require such security as
         it may deem appropriate for the adequate protection of the Company.

         (iv) Non-Transferability of Option

              Unless otherwise specified by the Committee to the contrary, an
         option by its terms shall not be transferable by the optionee otherwise
         than by will or by the laws of descent and distribution and shall be
         exercisable during the optionee's lifetime only by the optionee. The
         Committee may, in the manner established by the Committee, provide for
         the transfer, without payment of consideration, of a non-qualified
         option by an optionee to a member of the optionee's immediate family or
         to a trust or partnership whose beneficiaries are members of the
         optionee's immediate family. In such case, the

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<PAGE>

         option shall be exercisable only by such transferee. For purposes of
         this provision, an optionee's "immediate family" shall mean the
         holder's spouse, children and grandchildren.

       (v) Adjustment in Event of Recapitalization of the Company

              In the event of a reorganization, recapitalization, stock split,
         stock dividend, combination of shares, merger, consolidation, rights
         offering, or any other change in the corporate structure or shares of
         the Company, the Board of Directors shall make such adjustment as it
         may deem equitably required in the number and kind of shares authorized
         by and for the Plan, the number and kind of shares covered by the
         options granted, the number of shares which may be awarded to an
         optionee in any one year, and the option price.

       (vi) Rights after Termination of Employment

              (1) In the event of termination of employment due to any cause
         other than death, disability or retirement, rights to exercise the
         stock option shall cease, except for those which have accrued to and
         including the "date of termination" (as defined below), unless the
         Committee shall otherwise specify. These rights shall remain
         exercisable for a period of three (3) months after the date of
         termination, or such longer period (not to exceed three (3) years) as
         the Committee shall provide.

              (2) In the event of termination of employment due to death or
         disability, rights to exercise the stock option shall cease, except for
         those which have accrued to and including the date of termination,
         unless the Committee shall otherwise specify. These rights shall remain
         exercisable for a period of three (3) years or such longer period (not
         to exceed the term of the option) as the Committee shall provide.

              Notwithstanding the above, in the event such termination of
         employment due to death or disability occurs with optionee having at
         least ten (10) years of service, any unexercised or unexercisable
         portion of the stock option may be exercised in whole or in part during
         the remaining term of the option at such times and to the extent the
         optionee could have exercised such stock option had the optionee's
         employment not terminated.

              (3) In the event of retirement (unrelated to termination for
         cause, as defined below, which shall be governed by the provisions of
         (1) above) rights to exercise the stock option shall cease, except for
         those which have accrued to and including the date of termination,
         unless the Committee shall otherwise specify. These rights shall remain
         exercisable for a period of three (3) years, or such longer period (not
         to exceed the term of the option) as the Committee shall provide,
         provided, however, that in the event the optionee is "employed by a
         competitor" (as defined below) within two (2) years from the date of
         such retirement, no rights may be exercisable beyond a date which is
         three (3) months after the commencement of such employment with a
         competitor.

              Notwithstanding the above, in the event such retirement (unrelated
         to termination for cause which shall be governed by the provisions of
         (1) above) occurs with optionee having at least ten (10) years of
         service, any unexercised or unexercisable portions of the stock option
         may be exercised in whole or in part during the remaining term of the
         stock option at such times and to the extent the optionee could have
         exercised such stock option had the optionee's employment not
         terminated, provided, however, that in the event the optionee is
         employed by a competitor within two (2) years from the date of such
         retirement, (i) any unexercisable portion of the stock option shall
         terminate immediately and (ii) no rights may be exercisable beyond a
         date which is three (3) months after the commencement of such
         employment with a competitor.

              (4) No stock option shall, in any event, be exercised after the
         expiration of 10 years from the date such option is granted, or such
         earlier date as may be specified in the option. In addition, any stock
         option granted within six (6) months of termination of employment due
         to any cause whatsoever shall be void unless the Committee shall
         otherwise provide.

              (5) As used in the Plan:

                (i) The term "termination for cause" shall mean optionee's
           termination by the Company or any of its subsidiaries in connection
           with the violation of any federal or state law, dishonesty, the
           willful and deliberate failure on the part of an optionee to perform
           his/her employment

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<PAGE>

           duties in any material respect or such other events, including the
           existence of a conflict of interest, as the Management Compensation
           Committee may determine. Such committee shall have the sole
           discretion to determine whether a "termination for cause" exists, and
           its determination shall be final.

                (ii) The term "employed by a competitor" shall mean the
           optionee's engaging in any activity or providing services, whether as
           director, employee, advisor, consultant or otherwise, for any
           corporation or other entity which is a competitor of the Company or
           any of its subsidiaries. The Management Compensation Committee shall
           have the sole discretion to determine if an optionee is "employed by
           a competitor", and its determination shall be final.

                (iii) The term "date of termination" shall mean the last date on
           which the optionee was in an active employment status. Specifically,
           in the event an optionee is covered by a severance agreement or
           arrangement, the "date of termination" shall be the last day date of
           active employment, not the date corresponding to the end of the
           severance period.

     B.  NON-QUALIFIED STOCK OPTIONS

         The Committee may, in its discretion, grant options under the Plan
         which, in whole or in part, do not qualify as incentive stock options
         under Section 422 of the Internal Revenue Code. In addition to the
         terms and conditions set forth in Section 6A above, the following terms
         and conditions shall govern any option (or portion thereof) to the
         extent that it does not so qualify.

       (i) Form of Payment

              Payment of the option price of any option (or portion thereof) not
         qualifying as an incentive stock option shall be made in cash or, in
         the discretion of the Committee, in the Common Stock of the Company
         valued at its fair market value (as the same shall be determined by the
         Committee), or a combination of such Common Stock and cash. Where
         payment of the option price is to be made with Common Stock acquired
         under a Company compensation plan (within the meaning of Opinion No. 25
         of the Accounting Principles Board), such Common Stock will not be
         accepted as payment unless the optionee has beneficially owned such
         Common Stock for at least six months (increased to one year if such
         Common Stock was acquired under an incentive stock option) prior to
         such payment.

       (ii) Period of Option

              The exercise period of each non-qualified stock option by its
         terms shall not be more than 10 years from the date the option is
         granted as specified by the Committee.

     C.  INCENTIVE STOCK OPTIONS

         The Committee may, in its discretion, grant options under the Plan
         which qualify in whole or in part as incentive stock options under
         Section 422 of the Internal Revenue Code. In addition to the terms and
         conditions set forth in Section 6A above, the following terms and
         conditions shall govern any option (or portion thereof) to the extent
         that it so qualifies:

       (i) Maximum Fair Market Value of Incentive Stock Options

              The aggregate fair market value (determined as of the time such
         option is granted) of the Common Stock for which any optionee may have
         stock options which first become vested in any calendar year (under all
         incentive stock option plans of the Company and its subsidiaries) shall
         not exceed $100,000.

       (ii) Form of Payment

            Payment of the option price for incentive stock options shall be
         made in cash or in the Common Stock of the Company valued at its fair
         market value (as the same shall be determined by the Committee), or a
         combination of such Common Stock and cash. Where payment of the option
         price is to be made with Common Stock acquired under a Company
         compensation plan (within the meaning of Opinion No. 25 of the
         Accounting Principles Board), such Common Stock will not be accepted as
         payment unless the optionee has beneficially owned such Common Stock
         for at least six

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<PAGE>

         months (increased to one year if such Common Stock was acquired under
         an incentive stock option) prior to such payment.

       (iii) Period of Option

              The exercise period of each incentive stock option by its terms
         shall not be more than 10 years from the date the option is granted as
         specified by the Committee.

     D.  OPTIONS FOR NON-EMPLOYEE DIRECTORS

         Notwithstanding the foregoing, in the event of any inconsistency
         between the terms and conditions above and the following terms and
         conditions, the following terms and conditions shall govern the stock
         options granted to non-employee directors of the Board of Directors:

              (i) The Committee shall establish the time or times within the
         option period when the stock option may be exercised in whole or in
         such parts as may be specified from time to time by the Committee;
         provided however that each option shall become 100% exercisable upon
         the completion of a non-employee director's Board service.

              (ii) If a non-employee director completes his or her service as a
         director of the Company for any reason (other than death), their
         options may be exercised at any time during the remainder of the option
         term.

              (iii) In the event of a non-employee director's death, regardless
         of whether he or she is still serving as a director, the option may be
         exercised, subject to the provisions of Section 6B (ii) above, within
         three (3) years after death by his or her estate or by any person who
         acquires such option by inheritance or devise. Thereafter, such rights
         shall lapse.

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