Document:

Exhibit
10.1

ADOBE
SYSTEMS INCORPORATED

2003
EQUITY INCENTIVE PLAN

2007 PERFORMANCE SHARE PROGRAM

ADOPTED:  JANUARY 24,
2007

1.             Purpose.  The Adobe Systems Incorporated 2007
Performance Share Program (the “Program”), established under the Adobe Systems
Incorporated 2003 Equity Incentive Plan (the “Plan”), is intended to provide
equity incentive compensation to individuals who make a significant
contribution to the performance of Adobe Systems Incorporated (the “Company”).  Program objectives are to:  (i) focus key Employees on achieving specific
performance targets, (ii) reinforce a team orientation, (iii) provide
significant award potential for achieving outstanding performance, and (iv)
enhance the ability of the Company to attract and retain highly talented and
competent individuals.

2.             Definitions.

Defined
terms not explicitly defined in this Program but defined in the Plan shall have
the same definitions as in the Plan.

(a)           “Actual Award” means the number of shares of Stock
credited to a Designated Participant under the Program during a Performance
Period based on achievement of applicable Performance Goals and Other
Performance Goals.

(b)           “Board”
means the Board of Directors of the Company.

(c)           “Certification Date” means the date on
which the Committee certifies whether the Performance Goals have been met under
the Performance Award Formula and whether any reductions in the Maximum Awards
should be made on account of the degree of achievement of the Other
Performance Goals.

(d)           “Committee”
means a committee of one or more members of the Board appointed by the Board
pursuant to the Plan; provided, however, that for purposes of administering the
Plan with respect to Designated Participants who are or may be deemed “covered
employees” (as defined for purposes of Section 162(m) of the Code), the “Committee”
shall be composed of two or more members of the Board, each of whom is an “outside
director” for purposes of Section 162(m) of the Code.

(e)           “Disability” means, with respect to a Designated
Participant, the inability of such Designated Participant to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than twelve (12) months,
as provided in Section 22(e)(3) and 409A(a)(2)(c)(i) of the Code.

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(f)            “Designated Participant” means a key Employee of the
Company or any other Participating Companywho
is designated by the Committee in writing to participate in the Program.

(g)           “Maximum Award” means the maximum number of shares of
Stock that may be credited to a Designated Participant under the Program in
respect of a specified Performance Period if the applicable Performance Goals
are achieved at the levels set by the Committee during the applicable
Performance Period and the Designated Participant continues to render Service
to the Company or any other
Participating Company during the entire Performance Period.

(h)           “Other Performance Goal” means a performance goal
established by the Committee that is not a Performance Goal established
pursuant to Section 9.3 of the Plan.

(i)            “Performance Period” means the period of time selected by the Committee over which the
attainment of one or more Performance Goals will be measured for the purpose of
determining a Designated Participant’s right to an Actual Award.  At the discretion of the Committee, a
Performance Period may be divided into shorter periods (for example, fiscal
years of the Company) over which the attainment of one or more Performance
Goals will be measured.

3.             How
Awards Are Earned Under the Program.

(a)           General Program
Description.  The Program
provides the opportunity for certain key Employees to earn shares of Stock
based on the performance of the Company. 
In general, the Committee will select certain key Employees to
participate in the Program at the beginning of a Performance Period.  Upon selection to participate in the Program,
each such Designated Participant will be granted a Maximum Award equal to the
number of shares of Stock that will be represented by an Actual Award to such
Designated Participant if (i) specified levels of applicable Performance Goals
are achieved during the Performance Period, (ii) the Committee does not reduce
the Maximum Award on account of the degree of achievement of applicable Other
Performance Goals, and (iii)the
Designated Participant continues to render Service to the Company or any other
Participating Company during the entire Performance Period and any subsequent additional
vesting period.  If the Committee does
reduce the Maximum Award on account of the degree of achievement of applicable
Other Performance Goals, the Designated Participant will be awarded a portion
(or none) of the shares of Stock subject to the Maximum Award; provided, however, that (i) if the
specified level of Performance Goals is not achieved during the Performance
Period, the Designated Participant will not receive any shares of Stock, and
(ii) the maximum number of shares of Stock that a Designated Participant may
receive as an Actual Award will in no event exceed the Maximum Award.  The methodology for the operation of the
Program in terms of establishing the Maximum Award based on the levels of
achievement of the Performance Goals and the determination of whether the
Maximum Award, or some portion of it, will become payable to a Designated
Participant as an Actual Award in respect of a Performance Period is set forth
in the attached Exhibit A.  As required by Section 5.4(b)(iii) of the
Plan and in accordance with Section 162(m) of the Code, in no event may a
Maximum Award be granted to a Designated Participant such that the number of
shares of Stock that could be earned by such Designated Participant as an
Actual Award would 

 2
 

exceed two hundred
thousand (200,000) shares of Stock for each full fiscal year of the Company
contained in the Performance Period for such Actual Award.

(b)           Designated Participants. 
Each key Employee of the Company or any other Participating Companywho is designated by the Committee in
writing for participation in the Program for a particular Performance Period
shall be eligible for a Maximum Award with respect to such Performance
Period.  The Committee may designate a
key Employee who commences Service
after the beginning of a particular Performance Period as eligible to receive a
prorated Maximum Award for such Performance Period.  The determination as to whether an
individual is a Designated Participant shall be made by the Committee, in its
sole discretion, and such determination shall be binding and conclusive on all
persons.

No Employee shall
have any right to be a Designated Participant in the Program, to continue as a
Designated Participant, or to be granted a Maximum Award or Actual Award under
the Program.  The Company is not
obligated to give uniform treatment (e.g.,
number of shares subject to Maximum Awards) to Employees or Designated
Participants under the Program. 
Participation in the Program as to a particular Performance Period does
not convey any right to participate in the Program as to any other Performance
Period.

(c)           Performance Goals and Other Performance Goals.  The Performance Goals for a particular
Performance Period and Other Performance Goals, if applicable, and their
relative weights, will be determined by the Committee, in its sole discretion.
The Committee also may establish, in its sole discretion, Performance Goals and
Other Performance Goals for annual, quarterly or other periods within the
applicable Performance Period.  The
Performance Goals and Other Performance Goals for a Performance Period or for
shorter periods within a Performance Period are not required to be identical to
the Performance Goals and Other Performance Goals for any other Performance
Period or shorter period within a Performance Period.  The Committee may establish Performance Goals
and Other Performance Goals for the Company that differ from those established
for one or more other Participating Companies and may establish different
Performance Goals and Other Performance Goals for each Designated Participant
or for groups of Designated Participants.

4.             Other
Program Provisions.

(a)           Distribution
of Actual Awards.  Assessment
of actual performance, determination of Actual Awards and the distribution of
shares of Stock in respect of Actual Awards will be subject to (i)
certification by the Committee that the applicable Performance Goals and other
terms of the Program have been met, (ii) the Committee’s determination as to
the appropriate reductions, if any, in the amounts of the Maximum Awards in
arriving at the amounts of the Actual Awards, based on the levels of
achievement of applicable Other Performance Goals, and (iii) the completion of
any subsequent additional vesting period. 
Unless an Actual Award is subject to subsequent additional vesting,
shares of Stock that are credited to a Designated Participant as an Actual
Award will be distributed to the Designated Participant (or the Designated
Participant’s heirs in the case of death) within thirty (30) days following the
later of (i) the Certification Date and (ii) the first anniversary of the
vesting commencement date. 
Notwithstanding the foregoing, if the Company has provided a Designated
Participant with a plan or program by which to defer distribution of such
shares of Stock and the Designated 

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Participant has made an
effective election to defer such distribution under such plan or program, such
shares will be distributed to the Designated Participant (or the Designated
Participant’s heirs in the case of death) in accordance with such
election.  The Company shall withhold shares of Stock
otherwise deliverable to the Designated Participant in satisfaction of any
federal, state or local tax withholding obligation relating to the delivery of
Stock under the Actual Award, but the Company shall not withhold a number of
shares with a fair market value in excess of the applicable tax withholdings
determined by application of the minimum required statutory rates.

(b)           Employment and Termination.  In order to receive shares of Stock in
respect of an Actual Award under the Program, a Designated Participant must
continue to render Service to the Company or any other Participating Company
during the entire Performance Period, and for any subsequent additional vesting
period, except as otherwise provided under the terms of the applicable award
agreement.

(c)           No Employment or Service
Rights.  Nothing in the
Program or any instrument executed or Award granted pursuant to the Program
shall (i) confer upon any Employee or Designated Participant any right to
continue to be retained in the employ or service of the Company or any other
Participating Company, (ii) change the at-will employment relationship between
the Company or any other Participating Company and an Employee or Designated
Participant, or (iii) interfere with the right of the Company or any other
Participating Company to discharge any Employee, Designated Participant or
other person at any time, with or without cause, and with or without advance
notice.

A.            Program Administration. 
The Committee shall be responsible for all decisions and recommendations
regarding Program administration and retains final authority regarding all
aspects of Program administration, the resolution of any disputes, and
application of the Program in any respect to a Designated Participant.  All
determinations and interpretations made by the Committee in good faith shall
not be subject to review by any person and shall be final, binding and
conclusive on all persons.  The
Committee may, without notice, amend, suspend or terminate the Program; provided, however, that no such action may adversely affect
any then outstanding Award unless (i) expressly provided by the Committee and
(ii) with the consent of the Participant, unless such action is necessary to
comply with any applicable law, regulation or rule.

B.            Stockholder
Rights.  No Designated Participant shall be deemed to be the holder of, or to
have any of the rights of a holder with respect to, any shares of Stock subject
to a Maximum Award (including, without limitation, the right to receive
dividends) unless and until such Designated Participant has received an
Actual Award under the Program, has vested in the shares subject to the Actual
Award and has received delivery of such shares; provided,
however, that a plan or program by which receipt of shares of Stock
in respect of an Actual Award may be deferred may provide for the crediting of
dividend equivalent rights.

(d)           Validity.  If any
provision of the Program is held invalid, void, or unenforceable, the same will
not affect, in any respect whatsoever, the validity of any other provision of
the Program.

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(e)           Governing Plan Document.  The
Program is subject to all the provisions of the Plan and is further subject to
all interpretations, amendments, rules and regulations which may from time to
time be promulgated and adopted by the Committee, the Board or the Company
pursuant to the Plan.  In the event of
any conflict between the provisions of this Program and those of the Plan, the
provisions of the Plan shall control.

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EXHIBIT A

2007 PERFORMANCE SHARE PROGRAM

AWARD
CALCULATION METHODOLOGY

	
  Parameter

  	
   

  	
  Description

  
	
  1) Award Metrics

  	
   

  	
  “Initial Meta-Funding Gate” (for purposes of
  compliance with Internal Revenue Code (“IRC”) Section 162(m)): Achieve GAAP
  revenues of 90% of AOP Threshold performance 

  ·      If Initial Meta-Funding Gate is not met, no
  Actual Awards will be earned for 2007 

  ·      If Initial Meta-Funding Gate is met, Maximum
  Awards may be earned, subject to reduction based on the level of achievement
  of the following “Other Performance Goals”: 

  ·      Revenue (including shippable backlog at the end
  of the fiscal year) – Maximum Award reduced to zero if performance does not
  exceed 95% of AOP (AOP revenue goal will be set in consideration of beginning
  of year shippable backlog); and 

  ·      Non-GAAP Operating Margin – Maximum Award
  reduced to zero if performance does not exceed 95% of AOP. 

  Actual Awards determined using the matrix provided
  in Section 2, below.

  
	
   

  	
   

  	
   

  
	
  2) Award Determination

  	
   

  	
  ·      If Initial Meta-Funding Gate is not met, no
  Performance Shares are credited/earned 

  ·      If Initial Meta Funding Gate is met, the number
  of Performance Shares credited as an Actual Award is calculated using the
  matrix below 

  Step 1: Determine the “Performance Share Percentage”
  based on achievement of the Other Performance Goals by using the matrix below

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  

  

 

 

	
  

  	
   

  	
  Step 2: Determine the
  number of Performance Shares credited as an Actual Award by determining the
  Performance Share Percentage (Step 1) and multiplying that percentage by the
  number of Performance Shares subject to Target Award (partial share amounts
  will be rounded up to the next share) 

  ·      The maximum number of Performance Shares that
  may be credited as an Actual Award is 200% of the Target Award (the “Maximum
  Award”) 

  ·      Actual number of
  Performance Shares credited as Actual Award is calculated based on
  achievement, interpolated between points on matrix 

  See below for
  examples of the Actual Award determination process

  
	
   

  	
   

  	
   

  
	
  3.) Actual Award Determination Examples

  	
   

  	
  Assume: 

  ·      Maximum Award of 5,000 Performance Shares 

  ·      Target Award of 2,500 Performance Shares

  
	
   

  	
   

  	
   

  
	 
	
  Example 1

  	 

	 
	
  2007 Revenue Achievement:

  102.1% of AOP

  	
  2007 Operating Margin Achievement:

  100.7% of AOP

  	 

	 
	
  Performance Share Percentage
  According to Matrix: 134%

  	 

	 
	
  Performance Shares Credited as Actual
  Award:

  	 

	 
	
  2,500 Target

  	 

	 
	
  X

  	 

	 
	
  134%

  	 

	 
	
  =

  	 

	 
	
  3,350 Performance Shares

  	 

	 
	
   

  	 

	 
	
  Example 2

  	 

	 
	
  2007 Revenue Achievement: 

  97.9% of AOP

  	
  2007 Actual Operating Margin:

  98.9% of AOP

  	 

	 
	
  Performance
  Share Percentage According to Matrix: 85%

  	 

	 
	
  Performance
  Shares Credited as Actual Award:

  	 

	 
	
  2,500 Target

  	 

	 
	
  X

  	 

	 
	
  85%

  	 

	 
	
  =

  	 

	 
	
  2,125
  Performance SharesExhibit 10.2

 

ADOBE SYSTEMS INCORPORATED

2003 EQUITY INCENTIVE PLAN

2007
PERFORMANCE SHARE PROGRAM

AWARD GRANT NOTICE

Adobe Systems
Incorporated (the “Company”), pursuant to its
2007 Performance Share Program (the “Program”)
under its 2003 Equity Incentive Plan (the “Plan”),
hereby awards to Participant the award (the “Award”)
set forth below.  This Award is subject
to all of the terms and conditions as set forth herein and in the Performance
Share Award Agreement, the Program and the Plan, all of which are attached
hereto and incorporated herein in their entirety.  Unless otherwise defined herein, capitalized
terms shall have the meanings set forth in the Plan or the Program, as
applicable.

	
  Participant:

  	
   

  
	
  Date of Grant:

  	
   

  
	
  Vesting Commencement
  Date

  	
   

  
	
  Number of Shares
  of Stock Subject to Target Award:

  	
  [         ]
  shares of Stock

  
	
  Number of Shares
  of Stock Subject to Maximum Award:

  	
  200% of number of
  shares of Stock subject to Target Award

  
	
  Performance
  Period:

  	
   

  

 

Determination of Actual Award:  On the Certification Date,
and provided that (i) the specified level of applicable Performance Goals is
attained during the Performance Period and (ii) Participant continues to render
Service to the Company or any other Participating Company through the
Certification Date, the Company shall credit Participant with an Actual Award
representing the number of shares of Stock (which may be equal to all or a
portion (including none) of the Maximum Award) as determined by the Committee
based on the degree of achievement of the Other Performance Goals set forth on Exhibit A to the Program and the limitations set forth in
Section 5 of the Performance Share Award Agreement.

Vesting Schedule:   The Actual Award shall
vest as to 1/4th of the shares of Stock subject to the Actual Award on the
later of (i) the Certification Date and (ii) the one year anniversary of the [                    ]
(the “First Vesting Date”), and
thereafter as to 1/4th of the shares of Stock subject to the Actual
Award on each of the second, third and fourth anniversaries of the [                    ]
(each such date, a “Vesting Date”), so that the
Actual Award will be fully vested as of the fourth anniversary of the Vesting
Commencement Date; provided, however, that
the Participant continues to render Service to the Company or any other
Participating Company through each such vesting date.

Delivery of Shares:   Subject to the limitations contained herein
and the provisions of the Plan and the Program, the Company shall deliver to
the Participant the vested shares of Stock subject to the Actual Award as
provided in Section 3 of the Performance Share Award Agreement.

Additional
Terms/Acknowledgements: 
The undersigned Participant acknowledges receipt of, and understands and
agrees to, this Award Grant Notice, the Performance Share Award Agreement, the
Program and the Plan.  Participant
further acknowledges that as of the Date of Grant, this Award Grant Notice, the
Performance Share Award Agreement, the Program, and the Plan set forth the entire
understanding between Participant and the Company regarding the Award and
supersede all prior oral and written agreements on that subject with the
exception of (i) awards previously granted to Participant under the Plan, and
(ii) the following agreements only:

	
  OTHER AGREEMENTS:

  	
   

  
	
   

  	
   

  

 

 

	
  ADOBE SYSTEMS INCORPORATED:

  	
   

  	
  PARTICIPANT:

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  
	
  ATTACHMENTS:

  	
  Performance Share Award
  Agreement, 2007 Performance Share Program and 2003 Equity Incentive Plan

  
							

 

ADOBE SYSTEMS INCORPORATED

2003 EQUITY INCENTIVE PLAN

2007
PERFORMANCE SHARE PROGRAM

PERFORMANCE SHARE AWARD AGREEMENT

Pursuant to the Award Grant Notice (“Grant
Notice”) and this Performance Share Award Agreement (“Award Agreement”), Adobe Systems
Incorporated (the “Company”) has awarded you,
pursuant to its 2007 Performance Share Program (the “Program”)
under its 2003 Equity Incentive Plan (the “Plan”),
the Maximum Award as indicated in the Grant Notice.  Unless otherwise defined herein or in the
Grant Notice, capitalized terms shall have the meanings set forth in the Plan
or the Program, as applicable.

The details of your Award are as
follows.

1.             ENTITLEMENT TO SHARES.

(a)           Actual Award.  Provided
that (i) the specified level of applicable Performance Goals is achieved during
the Performance Period and (ii) you continue to render Service to the Company
or any other Participating Company through the Certification Date, then, subject to the limitations contained herein and to
the provisions of the Program and the Plan, you shall be credited with an
Actual Award on the Certification Date equal to all or a portion (including
none) of the Maximum Award, with a reduction from the Maximum Award determined
by the Committee based on the degree of achievement of the Other Performance
Goals set forth on Exhibit A to
the Program and, as applicable, based on any reduction pursuant to Section 5 of
this Award Agreement.  If the
Committee does reduce the Maximum Award on account of the degree of achievement
of Other Performance Goals, you will be credited with a portion (or none) of
the shares of Stock subject to the Maximum Award; provided, however, that (i) if a specified level of
Performance Goals is not achieved during the Performance Period, you will not
be credited with or receive any shares of Stock, and (ii) the maximum number of
shares of Stock for which you may be credited as an Actual Award will in no
event exceed the Maximum Award.

(b)           Vesting.  The Actual Award shall be subject to vesting
in accordance with the Vesting Schedule set forth on the Grant Notice, subject
to such acceleration as provided in Section 1(c) or 7 below.

(c)           Disability or
Death.

(i)            If your Service
terminates on or prior to the Certification Date by reason of death or
Disability, you (or your heirs in the case of death) will be credited with a
pro-rated Actual Award equal to that number of shares of Stock that you would
have been credited with if you had remained in Service until the Certification
Date based on the actual achievement of the Performance Goals and Other
Performance Goals, with pro-ration made based on the number of months of
Service (rounded up for any partial months of Service) you provided in the
Performance Period prior to termination (but in no event shall you be credited
with more than 12 

 1
 

months of Service during the Performance Period).  You will be deemed to have vested in that
1/4th of the shares of Stock subject to the Actual Award that would have vested
on the First Vesting Date.

(ii)           If your Service
terminates on or after the Certification Date, you will be deemed to have
vested in that 1/4th of the shares of Stock subject to the Actual Award that
would have vested on the next Vesting Date (which may be the First Vesting Date
if the Certification Date occurs prior to the first anniversary of the Vesting
Commencement Date).

(iii)         The shares of Stock
subject to an Actual Award that vests pursuant to this Section 1(c) shall be
issued and delivered to you (or your heirs in the case of death) at such time
as such shares would normally be issued pursuant to Section 3 below.

2.             DIVIDENDS.  Except
as provided in Section 6 below, you
shall not receive or be credited with any payment or other adjustment in the
number of shares subject to the Actual Award for cash dividends that may be
made in respect of the shares of Stock to which your Actual Award relates
unless the record date for such dividends occurs after the last day of the
Performance Period.  Any dividends that
may be made in respect of the shares of Stock subject to your Actual Award
pursuant to the foregoing sentence will be (a) credited as Dividend
Equivalents, (b) subject to vesting in accordance with the Vesting Schedule,
(c) subject to any deferral election you make, and (d) paid in the same form
issued to other stockholders.

3.             DELIVERY OF SHARES.  Subject to Sections 4 and 13 of this Award
Agreement, the Company shall issue and deliver to you (or your heirs in
the case of death) the certificates
representing the shares of Stock subject to a vested Actual Award (the “Certificates”)
within thirty (30) days following the date
of vesting of such Actual Award in accordance with Section 1(b) of this Award
Agreement.  If you elect to defer
delivery of the shares of Stock as provided in Section 4 of this Award
Agreement, shares of Stock will be issued and delivered to you on the date or
dates that you elect on your deferral election form.  The Certificates shall be in such form
as is determined by the Company.  All shares of Stock shall be fully vested on
delivery.

4.             DEFERRAL ELECTION.  If permitted by the Company to do so, you may
elect to defer receipt of the shares of Stock that would otherwise be issued
pursuant to the vesting of your Award in accordance with the terms and
conditions, including the applicable eligibility requirements, of the Company’s
Deferred Compensation Plan.  The Board
(or an appropriate committee thereof) will, in its sole discretion, establish
the rules and procedures for such deferrals.

5.             EFFECT OF LEAVES OF ABSENCE.  Unless otherwise required by law, if you have
taken in excess of thirty (30) days of leaves of absence during a Performance
Period, your Actual Award shall be prorated on the basis of the number of days
of Service during the Performance Period during which you were not on a leave
of absence.

6.             NUMBER OF SHARES.  The number of shares of Stock subject to your
Award will be adjusted from time to time for capitalization adjustments, as
provided in Section 4.2 of the Plan.

 2
 

7.             EFFECT OF CHANGE IN CONTROL. 
Upon a change in control (as defined in the Company’s Executive
Severance Plan in Event of Change in Control), the Program shall terminate.

(a)           If the change in
control occurs on or prior to the Certification Date, then (i) you shall be
credited with an Actual Award in respect of the number of shares of Stock
subject to the Target Award shown on the Grant Notice multiplied by a fraction,
the numerator of which is the number of months (rounded up for any partial
months) of the Performance Period that have elapsed as of the effective date of
the change in control (which number shall not be greater than 12) and the
denominator of which is 12 and (ii) you shall be deemed to have vested in that
1/4th of the shares of Stock subject to the Actual Award that would have vested
on the First Vesting Date.

(b)           If the change in
control occurs after the Certification Date, then you shall be deemed to have
earned and vested in that 1/4th of the shares of Stock subject to the Actual
Award that would have vested if the transaction were to occur on the next Vesting
Date (which may be the First Vesting Date if the Certification Date occurs
prior to the first anniversary of the Vesting Commencement Date).

(c)           Shares of Stock (or
any other shares of stock, cash or other property received pursuant to the
change in control in consideration for the shares of Stock subject to the
Actual Award; such consideration, the “Consideration”)
in respect of such Actual Award will be delivered to you not later than
immediately prior to the change in control; provided, however, that
the Company may delay delivery of the shares of Stock (or the Consideration, as
applicable) for six (6) months or such lesser period of time as is required to
avoid any additional taxes, penalties and interest under Section 409A of the
Code (and any state tax laws of similar effect).  You hereby acknowledge that Awards are
considered “performance share units” as such term is used in the Company’s
Executive Severance Plan in Event of Change in Control and any individual
change in control agreements.

8.             SECURITIES LAW COMPLIANCE.  The grant of your Award and the
issuance of any shares of Stock pursuant to an Actual Award shall be subject to
compliance with all applicable requirements of federal, state or foreign law
with respect to such securities.  You may not be issued any shares of Stock
pursuant to an Actual Award if the issuance of shares of Stock would
constitute a violation of any applicable federal, state or foreign securities
laws or other law or regulations or the requirements of any stock exchange or
market system upon which the Stock may then be listed.  In addition, you may not be issued any shares of Stock pursuant to an Actual Award unless
(i) a registration statement under the Securities Act shall at the time of
issuance be in effect with respect to the shares of Stock or (ii) in the
opinion of legal counsel to the Company, the shares of Stock may be issued in
accordance with the terms of an applicable exemption from the registration
requirements of the Securities Act.  YOU
ARE CAUTIONED THAT THE SHARES OF STOCK MAY NOT BE ISSUED UNLESS THE FOREGOING
CONDITIONS ARE SATISFIED.  The inability
of the Company to obtain from any regulatory body having jurisdiction the
authority, if any, deemed by the Company’s legal counsel to be necessary to the
lawful issuance and sale of any shares of Stock pursuant to an Actual Award
shall relieve the Company of any liability in respect of the failure to issue
or sell such shares as to which such requisite authority shall not have been
obtained.  As a condition to the issuance
of 

 3
 

any shares of Stock pursuant to an Actual Award, the
Company may require you to satisfy any qualifications that may be necessary or
appropriate, to evidence compliance with any applicable law or regulation and
to make any representation or warranty with respect thereto as may be requested
by the Company

9.             RESTRICTIVE LEGENDS.  The shares of Stock issued pursuant to an
Actual Award shall be endorsed with appropriate legends, if any, determined by
the Company.

10.          TRANSFERABILITY. 
Your Award and any unvested shares of Stock subject to the Actual Award
are not transferable, except by will or by the laws of descent and
distribution.  Notwithstanding the
foregoing, by delivering written notice to the Company, in a form satisfactory
to the Company, you may designate a third party who, in the event of your
death, shall thereafter be entitled to receive any distribution of shares of
Stock pursuant to Section 3 of this Award Agreement.

11.          AWARD NOT A SERVICE CONTRACT.  Your Award is not an employment or service
contract, and nothing in your Award shall be deemed to create in any way
whatsoever any obligation on your part to continue in the service of the
Company or the Participating Company Group, or on the part of the Company or
Participating Company Group to continue such service.  In addition, nothing in your Award shall
obligate the Company or the Participating Company Group, their respective
stockholders, boards of directors, Officers or Employees to continue any
relationship that you might have as an Employee, Director or Consultant for the
Company or the Participating Company Group.

12.          UNSECURED OBLIGATION.  Your Award is unfunded, and you shall be
considered an unsecured creditor of the Company with respect to the Company’s
obligation, if any, to issue shares of Stock pursuant to an Actual Award under
this Award Agreement.  You shall not have voting or any
other rights as a stockholder of the Company with respect to the Stock acquired
pursuant to this Award Agreement until such Stock is issued to you pursuant to
this Award Agreement.  Upon such
issuance, you will obtain full voting and other rights as a stockholder of the
Company with respect to the Stock so issued. 
Nothing contained in this Award Agreement, and no action taken pursuant
to its provisions, shall create or be construed to create a trust of any kind
or a fiduciary relationship between you and the Company or any other person.

13.          WITHHOLDING OBLIGATIONS.  Regardless of any action taken by
the Company or the Participating Company Group
with respect to any or all income, employment, social insurance, or payroll
taxes, payment on account or other tax-related withholding (“Tax-Related Items”),
you acknowledge that the ultimate liability for all Tax-Related Items legally
due by you is and remains your responsibility and that the Company and Participating Company Group (i) make
no representations or undertakings regarding the treatment of any Tax-Related
Items in connection with any aspect of your Award, the subsequent sale of
shares of Stock acquired pursuant to an Actual Award, or the receipt of any
dividends and (ii) does not commit to structure the terms of the grant or any
other aspect of your Award to reduce or eliminate your liability for
Tax-Related Items.  At the time any Actual Award is determined, at
the time you vest in such Actual Award, at the time you receive a distribution
of shares of Stock pursuant to such Actual Award, or at any time thereafter as
requested by the Company or the Participating Company Group, you shall
pay or make adequate arrangements satisfactory to the Participating 

 4
 

Company Group to satisfy
all withholding obligations of the Participating
Company Group.  In this regard, at the time you receive a distribution of shares
of Stock pursuant to an Actual Award, or at any time thereafter as requested by
the Company or the Participating Company Group, you hereby authorize the
withholding of that number of whole vested shares of Stock otherwise
deliverable to you pursuant to an Actual Award under this Award Agreement
having a fair market value not in excess of the amount of the Tax-Related Items
determined by the applicable minimum statutory rates.  Finally, you shall pay to the Company or Participating Company Group (as
applicable) any amount of the Tax-Related Items that the Company or the Participating Company Group may be
required to withhold as a result of your participation in the Plan that cannot
be satisfied by the means previously described. 
The Company and the Participating
Company Group shall have no obligation to deliver shares of Stock until
you have satisfied the obligations in connection with the Tax-Related Items as
described in this section.

14.          NATURE OF AWARD.  In accepting your Award, you acknowledge
that:

(a)           the Plan is
established voluntarily by the Company; it is discretionary in nature and it
may be modified, amended, suspended or terminated by the Company at any time,
unless otherwise provided in the Plan, Program and this Award Agreement;

(b)           the grant of your
Award is voluntary and occasional and does not create any contractual or other
right to receive future grants of Awards, or benefits in lieu of Awards, even
if Awards have been granted repeatedly in the past;

(c)           all decisions with
respect to future Awards under the Plan, if any, will be at the sole discretion
of the Committee;

(d)           your participation
in the Plan shall not create a right to further employment with the Company or
the Participating Company Group and shall not interfere with any ability of the
Company or the Participating Company Group to terminate your employment
relationship at any time with or without cause;

(e)           you are voluntarily
participating in the Plan;

(f)            an Award is not
part of normal or expected compensation or salary for any purpose, including,
but not limited to, calculating any severance, resignation, termination,
redundancy, end-of-service payments, bonuses, long-service awards, pension or
retirement benefits or similar payments;

(g)           in the event that
you are not an employee of the Company, your Award will not be interpreted to
form an employment contract or relationship with the Company; and furthermore,
your Award will not be interpreted to form an employment contract with the
other members of the Participating Company Group;

(h)           the future value of
the shares of Stock subject to your Award is unknown and cannot be predicted
with certainty; and

(i)            no claim or
entitlement to compensation or damages arises from termination of your Award or
diminution in value of your Award or shares of Stock issued 

 5
 

pursuant to an Actual Award resulting from termination
of your Service with the Company or the Participating Company Group (for any
reason whether or not in breach of applicable labor laws), and you irrevocably
release the Company and the Participating Company Group from any such claim
that may arise.  If, notwithstanding the
foregoing, any such claim is found by a court of competent jurisdiction to have
arisen then, by executing the Grant Notice, you shall be deemed irrevocably to
have waived your entitlement to pursue such a claim.

15.          DELIVERY OF DOCUMENTS AND NOTICES.  Any document relating to participating in the
Plan or Program and/or notice required or permitted hereunder shall be given in
writing and shall be deemed effectively given (except to the extent that this
Award Agreement provides for effectiveness only upon actual receipt of such
notice) upon personal delivery, electronic delivery, or upon deposit in the
U.S. Post Office or foreign postal service, by registered or certified mail,
with postage and fees prepaid, addressed to the other party at the e-mail
address, if any, provided for you by the Company or a Participating Company or
at such other address as such party may designate in writing from time to time
to the other party.

(a)           Description of Electronic Delivery.  The Plan and Program documents,
which may include but do not necessarily include the Plan prospectus, Grant
Notice, Award Agreement and U.S. financial reports of the Company, may be
delivered to you electronically.  Such
means of delivery may include but do not necessarily include the delivery of a
link to a Company intranet or the internet site of a third party involved in
administering the Plan, the delivery of the document via e-mail or such other
delivery determined at the Committee’s discretion.

(b)           Consent to Electronic Delivery.  You
acknowledge that you have read Section 15 of this Award Agreement and consent
to the electronic delivery of the Plan and Program documents, as described in
Section 15 of this Award Agreement. 
You acknowledge that you may receive from the Company a paper copy of
any documents delivered electronically at no cost if you contact the Company by
telephone, through a postal service or electronic mail at
equity@adobe.com.  You further
acknowledge that you will be provided with a paper copy of any documents
delivered electronically if electronic delivery fails; similarly, you understand that you must provide the Company or any
designated third party with a paper copy of any documents delivered
electronically if electronic delivery fails. 
Also, you understand that your consent may be revoked or changed,
including any change in the electronic mail address to which documents are
delivered (if you have provided an electronic mail address), at any time by
notifying the Company of such revised or revoked consent by telephone, postal
service or electronic mail at equity@adobe.com. 
Finally, you understand that you are not required to consent to
electronic delivery.

16.          DATA PRIVACY CONSENT. 
You
hereby explicitly and unambiguously consent to the collection, use and
transfer, in electronic or other form, of your personal data as described in
this document by and among the members of the Participating Company Group for
the exclusive purpose of implementing, administering and managing your
participation in the Plan and Program.

You understand that the Company and the Participating
Company Group hold certain personal information about you, including, but not
limited to, your name, home address 

 6
 

and telephone number, date of birth, social insurance number or other
identification number, salary, nationality, job title, any shares of Stock or
directorships held in the Company, details of all Awards or any other
entitlement to shares of Stock awarded, canceled, exercised, vested, unvested
or outstanding in your favor, for the purpose of implementing, administering
and managing the Plan and Program (“Data”).  You understand that Data may be transferred
to any third parties assisting in the implementation, administration and
management of the Plan or Program, that these recipients may be located in your
country or elsewhere, and that the recipient’s country may have different data
privacy laws and protections than your country. 
You understand that you may request a list with the names and addresses
of any potential recipients of the Data by contacting your local human
resources representative.  You authorize
the recipients to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the purposes of implementing, administering and
managing your participation in the Plan, including any requisite transfer of
such Data as may be required to a broker or other third party with whom you may
elect to deposit any shares of Stock pursuant to an Actual Award.  You understand that Data will be held only as long as is necessary to
implement, administer and manage your participation in the Plan.  You understand that you may, at any time,
view Data, request additional information about the storage and processing of
Data, require any necessary amendments to Data or refuse or withdraw the
consents herein, in any case without cost, by contacting in writing your local
human resources representative.  You
understand, however, that refusing or withdrawing your consent may affect your
ability to participate in the Plan or Program. 
For more information on the consequences of your refusal to consent or
withdrawal of consent, you understand that you may contact your local human
resources representative.

17.          HEADINGS.  The
headings of the Sections in this Award Agreement are inserted for convenience
only and shall not be deemed to constitute a part of this Award Agreement or to
affect the meaning of this Award Agreement.

18.          AMENDMENT.  The
Committee may, without notice, amend, suspend or terminate the Program; provided, however, that no such action may adversely affect
any then outstanding Award unless (i) expressly provided by the Committee and
(ii) with the consent of the Participant, unless such action is necessary to
comply with any applicable law, regulation or rule.

19.          MISCELLANEOUS.

(a)           The rights and
obligations of the Company under your Award shall be transferable to any one or
more persons or entities, and all covenants and agreements hereunder shall
inure to the benefit of, and be enforceable by the Company’s successors and
assigns.

(b)           You agree upon
request to execute any further documents or instruments necessary or desirable
in the sole determination of the Company to carry out the purposes or intent of
your Award.

(c)           You acknowledge and
agree that you have reviewed your Award in its entirety, have had an
opportunity to obtain the advice of counsel prior to executing and accepting
your Award and fully understand all provisions of your Award.

 7
 

20.          GOVERNING PLAN DOCUMENT.  Your Award is subject to all the provisions
of the Plan and Program, the provisions of which are hereby made a part of your
Award, and is further subject to all interpretations, amendments, rules and
regulations which may from time to time be promulgated and adopted pursuant to
the Plan or Program.  In the event of any
conflict between the provisions of your Award and those of the Plan or Program,
the provisions of the Plan or Program shall control.  In the event of any conflict between the
provisions of the Plan or Program, the provisions of the Plan shall control.

21.          APPLICABLE LAW. 
This Award Agreement shall be governed by the laws of the State of
California as such laws are applied to agreements between California residents
entered into and to be performed entirely within the State of California.

 8

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