Document:

ex10_19.htm

    
      EXHIBIT
10.19

    

    ADOBE
SYSTEMS INCORPORATED

    2005
EQUITY INCENTIVE ASSUMPTION PLAN

    (as
amended and restated effective as of November 16, 2009)

     

    1. ESTABLISHMENT, PURPOSE AND
TERM OF PLAN.

     

    1.1 Establishment.  Adobe Systems
Incorporated, a Delaware corporation, established the Adobe Systems Incorporated
2005 Equity Incentive Assumption Plan (the “Plan”)
effective as of December 3, 2005 (the “Effective
Date”) and hereby amends and restates the Plan effective as of November
16, 2009 (the “Restatement
Date”).

     

    1.2 Background
and Purpose.  The Plan was
established in connection with the acquisition by the Company of Macromedia,
Inc. and is amended and restated in connection with the acquisition by the
Company of Omniture, Inc. The Plan is intended to comply with Rule 5635(c)(3) of
the Nasdaq Qualitative Listing Requirements.  The purpose of the Plan
is to advance the interests of the Participating Company Group and its
stockholders by providing an incentive to attract, retain and reward persons
performing services for the Participating Company Group and by motivating such
persons to contribute to the growth and profitability of the Participating
Company Group.  The Plan seeks to achieve this purpose by providing
for Awards in the form of Options, Restricted Stock Units, Stock Appreciation
Rights, Stock Purchase Rights, Stock Bonuses, Performance Shares and Performance
Units.  Outstanding Awards shall continue to be governed by and
administered under the terms of the Macromedia Plans or Omniture Plans pursuant
to which they originally were granted.  Awards granted on or after the
Effective Date, other than Outstanding Awards, shall be subject to the terms of
this Plan.

     

    1.3 Term
of Plan.  The Plan shall
continue in effect until the earlier of its termination by the Board or the date
on which all of the shares of Stock available for issuance under the Plan have
been issued and all restrictions on such shares under the terms of the Plan and
the agreements evidencing Awards granted under the Plan have lapsed; provided, however, that no Awards may
be made from Reserve A after August 1, 2009, no Awards may be made from Reserve
B after November 10, 2014, no Awards may be made from Reserve C after March 23,
2016, no Awards may be made from Reserve D after June 30, 2015 and no Awards may
be made from Reserve E after July 14, 2014.

     

    2. DEFINITIONS AND
CONSTRUCTION.

     

    2.1 Definitions.  Whenever used
herein, the following terms shall have their respective meanings set forth
below:

     

    (a) “Affiliate”
means (i) an entity, other than a Parent Corporation, that directly, or
indirectly through one or more intermediary entities, controls the Company or
(ii) an entity, other than a Subsidiary Corporation, that is controlled by the
Company directly, or indirectly through one or more intermediary
entities.  For this purpose, the term “control” (including the term
“controlled by”) means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of the relevant
entity, whether through the ownership of voting securities, by contract or
otherwise; or shall have such other

     

    
      
        
          

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

     meaning
assigned such term for the purposes of registration on Form S-8 under the
Securities Act.

     

    (b) “Award”
means any Option, SAR, Stock Purchase Right, Stock Bonus, Restricted Stock Unit,
Performance Share or Performance Unit granted under the Plan.

     

    (c) “Award
Agreement” means a written agreement between the Company and a
Participant setting forth the terms, conditions and restrictions of the Award
granted to the Participant.  An Award Agreement may be an “Option
Agreement,” a “SAR Agreement,” a “Stock Purchase Agreement,” a “Stock Bonus
Agreement,” a “Restricted Stock Unit Agreement,”  a “Performance Share
Agreement” or a “Performance Unit Agreement.”

     

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

     

    (e) “Code”
means the Internal Revenue Code of 1986, as amended, and any applicable
regulations promulgated thereunder.

     

    (f) “Committee”
means the Executive Compensation Committee or other committee of the Board duly
appointed to administer the Plan and having such powers as shall be specified by
the Board.  If no committee of the Board has been appointed to
administer the Plan, the Board shall exercise all of the powers of the Committee
granted herein, and, in any event, the Board may in its discretion exercise any
or all of such powers.

     

    (g) “Company”
means Adobe Systems Incorporated, a Delaware corporation, or any successor
corporation thereto.

     

    (h) “Disability”
means the permanent and total disability of the Participant, within the meaning
of Section 22(e)(3) of the Code.

     

    (i) “Dividend
Equivalent” means a credit, made at the discretion of the Committee or as
otherwise provided by the Plan, to the account of a Participant in an amount
equal to the cash dividends paid on one share of Stock for each share of Stock
represented by an Award held by such Participant.

     

    (j)  “Employee”
means any person treated as an employee in the records of a Participating
Company (including an Officer or a member of the Board who is also an employee);
provided, however, that neither service as a member of the Board nor payment of
a director’s fee shall be sufficient to constitute employment for purposes of
the Plan.

     

    (k) “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

     

    (l) “Fair Market
Value” means, as of any date, the value of a share of Stock or other
property as determined by the Committee, in its discretion, or by the Company,
in its discretion, if such determination is expressly allocated to the Company
herein, subject to the following:

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    (i) If, on
such date, the Stock is listed on a national or regional securities exchange or
market system, the Fair Market Value of a share of Stock shall be the closing
price of a share of Stock (or the mean of the closing bid and asked prices of a
share of Stock if the Stock is so quoted instead) as quoted on the Nasdaq
National Market, The Nasdaq SmallCap Market or such other national or regional
securities exchange or market system constituting the primary market for the
Stock, as reported in The Wall
Street Journal or such other source as the Company deems
reliable.  If the relevant date does not fall on a day on which the
Stock has traded on such securities exchange or market system, the date on which
the Fair Market Value shall be established shall be the last day on which the
Stock was so traded prior to the relevant date, or such other appropriate day as
shall be determined by the Committee, in its discretion.

     

    (ii) If, on
such date, the Stock is not listed on a national or regional securities exchange
or market system, the Fair Market Value of a share of Stock shall be as
determined by the Committee in good faith without regard to any restriction
other than a restriction which, by its terms, will never lapse.

     

    (m) “Insider”
means an Officer, a member of the Board or any other person whose transactions
in Stock are subject to Section 16 of the Exchange Act.

     

    (n) “Macromedia
Plans” means the equity incentive plans of Macromedia, Inc. included in
Reserve A and Reserve B, as described in Section 4.1 of the Plan.

     

    (o) “Nonstatutory
Stock Option” means an Option not intended to be (as set forth in the
Award Agreement) an incentive stock option within the meaning of Section 422(b)
of the Code.

     

    (p) “Officer”
means any person designated by the Board as an officer of the
Company.

     

    (q) “Omniture
Plans” means the equity incentive plans of Omniture, Inc. included in
Reserve C, Reserve D and Reserve E as described in Section 4.1 of the
Plan.

     

    (r) “Option”
means the right to purchase Stock at a stated price for a specified period of
time granted to a participant pursuant to Section 6 of the Plan.  All
Options shall be Nonstatutory Stock Options.

     

    (s) “Outstanding
Award” means an award outstanding immediately prior to the Effective Date
under the Macromedia Plans or an award outstanding immediately prior to the
Restatement Date under the Omniture Plans.

     

    (t) “Parent
Corporation” means any present or future “parent corporation” of the
Company, as defined in Section 424(e) of the Code.

     

    (u) “Participant”
means any eligible person who has been granted one or more Awards.

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    (v) “Participating
Company” means the Company or any Parent Corporation, Subsidiary
Corporation or Affiliate.

     

    (w) “Participating
Company Group” means, at any point in time, all corporations collectively
which are then Participating Companies.

     

    (x) “Performance
Award” means an Award of Performance Shares or Performance
Units.

     

    (y) “Performance Award
Formula” means, for any Performance Award, a formula or table established
by the Committee pursuant to Section 9.3 of the Plan which provides the basis
for computing the value of a Performance Award at one or more threshold levels
of attainment of the applicable Performance Goal(s) measured as of the end of
the applicable Performance Period.

     

    (z) “Performance
Goal” means a performance goal established by the Committee pursuant to
Section 9.3 of the Plan.

     

    (aa) “Performance
Period” means a period established by the Committee pursuant to Section
9.3 of the Plan at the end of which one or more Performance Goals are to be
measured.

     

    (bb) “Performance
Share” means a bookkeeping entry representing a right granted to a
Participant pursuant to Section 9 of the Plan to receive a payment equal to the
value of a Performance Share, as determined by the Committee, based on
performance.

     

    (cc) “Performance
Unit” means a bookkeeping entry representing a right granted to a
Participant pursuant to Section 9 of the Plan to receive a payment equal to the
value of a Performance Unit, as determined by the Committee, based upon
performance.

     

    (dd) “Reserve A”
means the shares of Stock described in Section 4.1 of the Plan as being
allocated to such reserve.

     

    (ee) “Reserve B”
means the shares of Stock described in Section 4.1 of the Plan as being
allocated to such reserve.

     

    (ff) “Reserve C”
means the shares of Stock described in Section 4.1 of the Plan as being
allocated to such reserve.

     

    (gg) “Reserve D”
means the shares of Stock described in Section 4.1 of the Plan as being
allocated to such reserve.

     

    (hh) “Reserve E”
means the shares of Stock described in Section 4.1 of the Plan as being
allocated to such reserve.

     

    (ii) “Restricted Stock
Unit” means a bookkeeping entry representing a right granted to a
Participant pursuant to Section 8 of the Plan to receive one share of Stock,
a

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    cash
payment equal to the value of one share of Stock, or a combination thereof, as
determined in the sole discretion of the Committee.

     

    (jj)  “Restriction
Period” means the period established in accordance with Section 8.5 of
the Plan during which shares subject to a Stock Award are subject to Vesting
Conditions.

     

    (kk) “Rule
16b-3” means Rule 16b-3 under the Exchange Act, as amended from time to
time, or any successor rule or regulation.

     

    (ll) “SAR” or
“Stock
Appreciation Right” means a bookkeeping entry representing, for each
share of Stock subject to such SAR, a right granted to a Participant pursuant to
Section 7 of the Plan to receive payment of an amount equal to the excess, if
any, of the Fair Market Value of a share of Stock on the date of exercise of the
SAR over the exercise price.

     

    (mm) “Section
162(m)” means Section 162(m) of the Code.

     

    (nn) “Securities
Act” means the Securities Act of 1933, as amended.

     

    (oo) “Service”
means a Participant’s employment with the Participating Company Group as an
Employee.  Unless otherwise determined by the Board, a Participant’s
Service shall be deemed to have terminated if the Participant ceases to render
service to the Participating Company Group as an Employee.  However, a
Participant’s Service shall not be deemed to have terminated merely because of a
change in the Participating Company for which the Participant renders such
Service as an Employee, provided that there is no interruption or termination of
the Participant’s Service.  Furthermore, a Participant’s Service shall
not be deemed to have terminated if the Participant takes any bona fide leave of
absence approved by the Company of ninety (90) days or less.  In the
event of a leave in excess of ninety (90) days, the Participant’s Service shall
be deemed to terminate on the ninety-first (91st) day of the leave unless the
Participant’s right to return to Service is guaranteed by statute or
contract.  Notwithstanding the foregoing, unless otherwise designated
by the Company or required by law, a leave of absence shall not be treated as
Service for purposes of determining vesting under the Participant’s Award
Agreement.  A Participant’s Service shall be deemed to have terminated
either upon an actual termination of Service or upon the corporation for which
the Participant performs Service ceasing to be a Participating
Company.  Subject to the foregoing, the Company, in its discretion,
shall determine whether the Participant’s Service has terminated and the
effective date of such termination.

     

    (pp) “Stock”
means the common stock of the Company, as adjusted from time to time in
accordance with Section 4.2 of the Plan.

     

    (qq) “Stock
Award” means an Award of a Stock Bonus, a Stock Purchase Right or a
Restricted Stock Unit Award.

     

    (rr) “Stock
Bonus” means Stock granted to a Participant pursuant to Section 8 of the
Plan.

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    (ss) “Stock Purchase
Right” means a right to purchase Stock granted to a Participant pursuant
to Section 8 of the Plan.

     

    (tt) “Subsidiary
Corporation” means any present or future “subsidiary corporation” of the
Company, as defined in Section 424(f) of the Code.

     

    (uu) “Vesting
Conditions” mean those conditions established in accordance with Section
8.5 of the Plan prior to the satisfaction of which shares subject to a Stock
Award remain subject to forfeiture or a repurchase option in favor of the
Company.

     

    2.2 Construction.  Captions and
titles contained herein are for convenience only and shall not affect the
meaning or interpretation of any provision of the Plan.  Except when
otherwise indicated by the context, the singular shall include the plural and
the plural shall include the singular.  Use of the term “or” is not
intended to be exclusive, unless the context clearly requires
otherwise.

     

    3. ADMINISTRATION.

     

    3.1 Administration
by the Committee.  The Plan shall be
administered by the Committee.  All questions of interpretation of the
Plan or of any Award shall be determined by the Committee, and such
determinations shall be final and binding upon all persons having an interest in
the Plan or such Award.

     

    3.2 Authority
of Officers.  Any Officer shall
have the authority to act on behalf of the Company with respect to any matter,
right, obligation, determination or election which is the responsibility of or
which is allocated to the Company herein, provided the Officer has apparent
authority with respect to such matter, right, obligation, determination or
election.  The Board may, in its discretion, delegate to a committee
comprised of one or more Officers the authority to grant one or more Options,
without further approval of the Board or the Committee, to any Employee, other
than a person who, at the time of such grant, is an Insider; provided, however,
that (i) such Awards shall not be granted for shares in excess of the maximum
aggregate number of shares of Stock authorized for issuance pursuant to Section
4.1, (ii) the exercise price per share of each Option shall be not less than the
Fair Market Value per share of the Stock on the effective date of grant (or, if
the Stock has not traded on such date, on the last day preceding the effective
date of grant on which the Stock was traded, pursuant to Section 2.1(n)(1)
above), and (iii) each such Award shall be subject to the terms and conditions
of the appropriate standard form of Award Agreement approved by the Board or the
Committee and shall conform to the provisions of the Plan and such other
guidelines as shall be established from time to time by the Board or the
Committee.

     

    3.3 Administration
with Respect to Insiders.  With respect to
participation by Insiders in the Plan, at any time that any class of equity
security of the Company is registered pursuant to Section 12 of the Exchange
Act, the Plan shall be administered in compliance with the requirements, if any,
of Rule 16b-3.

     

    3.4 Powers
of the Committee.  In addition to
any other powers set forth in the Plan and subject to the provisions of the
Plan, the Committee shall have the full and final power and authority, in its
discretion:

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    (a) to
determine the persons to whom, and the time or times at which, Awards shall be
granted and the number of shares of Stock or units to be subject to each
Award;

     

    (b) to
determine the type of Award granted;

     

    (c) to
determine the Fair Market Value of shares of Stock or other
property;

     

    (d) to
determine the terms, conditions and restrictions applicable to each Award (which
need not be identical) and any shares acquired pursuant thereto, including,
without limitation, (i) the exercise or purchase price of shares purchased
pursuant to any Award, (ii) the method of payment for shares purchased pursuant
to any Award, (iii) the method for satisfaction of any tax withholding
obligation arising in connection with Award, including by the withholding or
delivery of shares of Stock, (iv) the timing, terms and conditions of the
exercisability or vesting of any Award or any shares acquired pursuant thereto,
(v) the Performance Award Formula and Performance Goals applicable to any Award
and the extent to which such Performance Goals have been attained, (vi) the time
of the expiration of any Award, (vii) the effect of the Participant’s
termination of Service on any of the foregoing, and (viii) all other terms,
conditions and restrictions applicable to any Award or shares acquired pursuant
thereto not inconsistent with the terms of the Plan;

     

    (e) to
determine whether an Award of SARs, Restricted Stock Units, Performance Shares
or Performance Units will be settled in shares of Stock, cash, or in any
combination thereof;

     

    (f) to
approve one or more forms of Award Agreement;

     

    (g) to amend,
modify, extend, cancel or renew any Award or to waive any restrictions or
conditions applicable to any Award or any shares acquired pursuant
thereto;

     

    (h) to
accelerate, continue, extend or defer the exercisability or vesting of any Award
or any shares acquired pursuant thereto, including with respect to the period
following a Participant’s termination of Service;

     

    (i) to
prescribe, amend or rescind rules, guidelines and policies relating to the plan,
or to adopt sub-plans or supplements to, or alternative versions of, the Plan,
including, without limitation, as the Committee deems necessary or desirable to
comply with the laws of or to accommodate the laws, regulations, tax or
accounting effectiveness, accounting principles or custom of, foreign
jurisdictions whose citizens may be granted Awards; and

     

    (j) to
correct any defect, supply any omission or reconcile any inconsistency in the
Plan or any Award Agreement and to make all other determinations and take such
other actions with respect to the Plan or any Award as the Committee may deem
advisable to the extent not inconsistent with the provisions of the Plan or
applicable law.

     

    3.5 Option
Repricing.  Without the
affirmative vote of holders of a majority of the shares of Stock cast in person
or by proxy at a meeting of the stockholders of the Company at which a quorum
representing a majority of all outstanding shares of Stock is
present

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    or
represented by proxy, the Board shall not approve a program providing for either
(a) the cancellation of outstanding Options and the grant in substitution
therefore of new Options having a lower exercise price or (b) the amendment of
outstanding Options to reduce the exercise price thereof.  This
paragraph shall not be construed to apply to “issuing or assuming a stock option
in a transaction to which section 424(a) applies,” within the meaning of Section
424 of the Code.

     

    3.6 Indemnification.  In addition to
such other rights of indemnification as they may have as members of the Board or
the Committee or as officers or employees of the Participating Company Group,
members of the Board or the Committee and any officers or employees of the
Participating Company Group to whom authority to act for the Board, the
Committee or the Company is delegated shall be indemnified by the Company
against all reasonable expenses, including attorneys’ fees, actually and
necessarily incurred in connection with the defense of any action, suit or
proceeding, or in connection with any appeal therein, to which they or any of
them may be a party by reason of any action taken or failure to act under or in
connection with the Plan, or any right granted hereunder, and against all
amounts paid by them in settlement thereof (provided such settlement is approved
by independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such action, suit or
proceeding that such person is liable for gross negligence, bad faith or
intentional misconduct in duties; provided, however, that within sixty
(60) days after the institution of such action, suit or proceeding, such person
shall offer to the Company, in writing, the opportunity at its own expense to
handle and defend the same.

     

    4. SHARES SUBJECT TO
PLAN.

     

    4.1 Maximum
Number of Shares Issuable.  The Plan shall
have five separate share reserves (“Reserve
A,” “Reserve
B,” “Reserve
C,” “Reserve D”
and “Reserve
E”). Reserve A and Reserve B reflect the unused share reserves and
potential reversions to such reserves, as of the Effective Date, with respect to
the following equity incentive plans that were maintained by Macromedia, Inc.
prior to the Effective Date:

     

    
      	
               
      

            	
              Reserve
      A:

            	
              Andromedia,
      Inc. 1999 Stock Plan

            

    

     

    
      	
               
      

            	
              Reserve
      B:

            	
              Macromedia,
      Inc. 2002 Equity Incentive Plan

            

    

     

    Accordingly,
as of the Effective Date, Reserve A consists of 190,678 shares of Stock, of
which there are Outstanding Awards covering 186,279 shares of Stock and 4,399
shares of Stock remaining available for Awards; and Reserve B consists of
6,163,117 shares of Stock, of which there are Outstanding Awards covering
5,897,011 shares of Stock and 266,106 shares of Stock remaining available for
Awards. Reserve C, Reserve D and Reserve E reflect the unused share reserves and
potential reversions to such reserves, as of the Restatement Date, with respect
to the following equity incentive plans that were maintained by Omniture, Inc.
prior to the Restatement Date:

     

    
      	
               
      

            	
              Reserve
      C:

            	
              Omniture,
      Inc. 2006 Equity Incentive Plan

            

    

     

    
      	
               
      

            	
              Reserve
      D:

            	
              Omniture,
      Inc. 2007 Equity Incentive Plan

            

    

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              Reserve
      E:

            	
              Omniture,
      Inc. 2008 Equity Incentive Plan

            

    

     

    As of the
Restatement Date, Reserve C consists of 6,688,321 shares of Stock, of which
there are Outstanding Awards covering 4,960,628 shares of Stock and 1,727,693
shares of Stock remaining available for Awards, Reserve D consists of 54,002
shares of Stock, of which there are Outstanding Awards covering 39,558 shares of
Stock and 14,444 shares of Stock remaining available for Awards and Reserve E
consists of 1,177,269 shares of Stock, of which there are Outstanding Awards
covering 764,455 shares of Stock and 412,814 shares of Stock remaining available
for Awards.  Outstanding Awards shall continue to be governed by and
administered under the terms of the Macromedia Plan or Omniture Plan pursuant to
which they originally were granted, but in the event of their forfeiture or
expiration unexercised, the shares of Stock associated with such forfeited or
expired Outstanding Awards shall become available for award pursuant to the
terms of this Plan from Reserve A, Reserve B, Reserve C, Reserve D or Reserve E,
as applicable.  Reserve A, Reserve B, Reserve C, Reserve D and Reserve
E shall each be subject to adjustment as provided in Section 4.2 of the
Plan.  For each Award granted under Reserve A or Reserve B of the
Plan, Reserve A or Reserve B, as the case may be, shall be reduced by one share
of Stock for each share of Stock subject to such Award.  For each
Award granted under Reserve C, Reserve D or Reserve E of the Plan, Reserve C,
Reserve D or Reserve E, as the case may be, shall be reduced (a) by one share of
Stock for each share of Stock subject to such an Option or Stock Appreciation
Right, and (b) by one and seventy seven-hundredths (1.77) shares of Stock for
each share of Stock subject to such an Award that is not an Option or Stock
Appreciation Right.  Such shares shall consist of authorized but
unissued or reacquired shares of Stock or any combination thereof.  If
an Award for any reason expires or is terminated or canceled without having been
exercised or settled in full, or if shares of Stock acquired pursuant to an
Award subject to forfeiture or repurchase are forfeited or repurchased by the
Company at the Participant’s purchase price to effect a forfeiture of unvested
shares upon termination of Service, the shares of Stock allocable to the
terminated portion of such Award or such forfeited or repurchased shares of
Stock shall be added back to Reserve A, Reserve B, Reserve C, Reserve D or
Reserve E in an amount corresponding to the reduction in such Reserve A, Reserve
B, Reserve C, Reserve D or Reserve E previously made in accordance with the
rules described above in this Section 4.1 and again be available for issuance
under the Plan from Reserve A, Reserve B, Reserve C, Reserve D or Reserve E, as
applicable.  Shares of Stock shall not be deemed to have been issued
pursuant to the Plan with respect to any portion of an Award (other than an SAR
that may be settled in shares of Stock or cash) that is settled in
cash.  Shares withheld in satisfaction of tax withholding obligations
pursuant to Section 13.2 shall not again become available for issuance under the
Plan.  Upon payment in shares of Stock pursuant to the exercise of an
SAR, the number of shares available for issuance under the Plan shall be reduced
by the gross number of shares for which the SAR is exercised.  If the
exercise price of an Option is paid by tender to the Company, or attestation to
the ownership, of shares of Stock owned by the Participant, the number of shares
available for issuance under the Plan shall be reduced by the gross number of
shares for which the Option is exercised.

    

    4.2 Adjustments
for Changes in Capital Structure.  In the event of
any change in the Stock through merger, consolidation, reorganization,
reincorporation, recapitalization, reclassification, stock dividend, stock
split, reverse stock split, split-up, split-off, spin-off, combination of
shares, exchange of shares or similar change in the capital structure of the
Company, or in the event of payment of a dividend or distribution to the
stockholders of the

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    Company
in a form other than Stock (excepting normal cash dividends) that has a material
effect on the Fair Market Value of shares of Stock, appropriate adjustments
shall be made in the number and class of shares subject to the Plan, in the
Award limits set forth in Section 5.3 and in the number of shares of Stock
subject to, and the exercise or purchase price per share under, any Award then
outstanding under this Plan.  Notwithstanding the foregoing, any
fractional share resulting from an adjustment pursuant to this Section 4.2 shall
be rounded down to the nearest whole number, and in no event may the exercise or
purchase price under any Award be decreased to an amount less than the par
value, if any, of the stock subject to such Award.  The adjustments
determined by the Committee pursuant to this Section 4.2 shall be final, binding
and conclusive.

     

    5. ELIGIBILITY AND AWARD
LIMITATIONS.

     

    5.1 Persons
Eligible for Awards.  Awards from
Reserve A and Reserve B may be granted only to Employees who were not employed
by or providing service to any Participating Company (other than Macromedia,
Inc. and its Affiliates and Subsidiaries) prior to the Effective Date. Awards
from Reserve C, Reserve D and Reserve E may be granted only to Employees who
were not employed by or providing service to any Participating Company (other
than Omniture, Inc. and its affiliates and subsidiaries) prior to the
Restatement Date.  For purposes of this Section 5.1, “Employees” shall
include prospective Employees to whom Awards are granted in connection with
written offers of an employment with the Participating Company Group; provided, however, that no Stock
subject to any such Award shall vest, become exercisable or be issued prior to
the date on which such person commences Service.

     

    5.2 Participation.  Awards are
granted solely at the discretion of the Committee.  Eligible persons
may be granted more than one (1) Award.  However, eligibility in
accordance with this Section shall not entitle any person to be granted an
Award, or, having been granted an Award, to be granted an additional
Award.

     

    5.3 Award
Limits.  Subject to
adjustment as provided in Section 4.2, in no event shall more than one hundred
thousand (100,000) shares of Stock in the aggregate be issued under Reserve A
and Reserve B of the Plan pursuant to the exercise or settlement of Stock Awards
and Performance Awards.

     

    6. TERMS AND CONDITIONS OF
OPTIONS.

     

    Options
shall be evidenced by Award Agreements specifying the number of shares of Stock
covered thereby, in such form as the Committee shall from time to time
establish.  No Option or purported Option shall be a valid and binding
obligation of the Company unless evidenced by a fully executed Award
Agreement.  Award Agreements evidencing Options may incorporate all or
any of the terms of the Plan by reference and shall comply with and be subject
to the following terms and conditions:

     

    6.1 Exercise
Price.  The exercise
price for each Option shall be established in the discretion of the Committee;
provided, however, that the exercise
price per share shall be not less than the Fair Market Value of a share of Stock
on the effective date of grant of the Option.  Notwithstanding the
foregoing, an Option may be granted with an exercise price lower than
the

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    minimum
exercise price set forth above if such Option is granted pursuant to an
assumption or substitution for another option in a manner qualifying under the
provisions of Section 409A and 424(a) of the Code.

     

    6.2 Exercisability
and Term of Options.  Options shall be
exercisable at such time or times, or upon such event or events, and subject to
such terms, conditions, performance criteria and restrictions as shall be
determined by the Committee and set forth in the Award Agreement evidencing such
Option; provided, however, that (a) no Option
shall be exercisable after the expiration of seven (7) years after the effective
date of grant of such Option, and (b) no Option granted to a prospective
Employee may become exercisable prior to the date on which such person commences
Service.  Subject to the foregoing, unless otherwise specified by the
Committee in the grant of an Option, any Option granted hereunder shall
terminate seven (7) years after the effective date of grant of the Option,
unless earlier terminated in accordance with its provisions.

     

    6.3 Payment
of Exercise Price.

     

    (a) Forms of
Consideration Authorized.  Except as otherwise provided below,
payment of the exercise price for the number of shares of Stock being purchased
pursuant to any Option shall be made (i) in cash, by check or cash equivalent,
(ii) by tender to the Company, or attestation to the ownership, of shares of
Stock owned by the Participant having a Fair Market Value not less than the
exercise price, (iii) by delivery of a properly executed notice of exercise
together with irrevocable instructions to a broker providing for the assignment
to the Company of the proceeds of a sale or loan with respect to some or all of
the shares being acquired upon the exercise of the Option (including, without
limitation, through an exercise complying with the provisions of Regulation T as
promulgated from time to time by the Board of Governors of the Federal Reserve
System) (a “Cashless
Exercise”), (iv) by such other consideration (including, without
limitation, a net exercise) as may be approved by the Committee from time to
time to the extent permitted by applicable law, or (v) by any combination
thereof.  The Committee may at any time or from time to time grant
Options which do not permit all of the foregoing forms of consideration to be
used in payment of the exercise price or which otherwise restrict one or more
forms of consideration.

     

    (b) Limitations
on Forms of Consideration.

     

    (i) Tender of
Stock.  Notwithstanding the foregoing, an Option may not be
exercised by tender to the Company, or attestation to the ownership, of shares
of Stock to the extent such tender or attestation would constitute a violation
of the provisions of any law, regulation or agreement restricting the redemption
of the Company’s stock.  Unless otherwise provided by the Committee,
an Option may not be exercised by tender to the Company, or attestation to the
ownership, of shares of Stock unless such shares either have been owned by the
Participant for more than six (6) months (and not used for another Option
exercise by attestation during such period) or were not acquired, directly or
indirectly, from the Company.

     

    (ii) Cashless
Exercise.  The Company reserves, at any and all times, the
right, in the Company’s sole and absolute discretion, to establish, decline to
approve or

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    terminate
any program or procedures for the exercise of Options by means of a Cashless
Exercise.

     

    6.4 Effect
of Termination of Service.  An Option shall
be exercisable after a Participant’s termination of Service to such extent and
during such period as determined by the Committee, in its discretion, and set
forth in the Award Agreement evidencing such Option.

     

    6.5 Transferability
of Options.  During the
lifetime of the Participant, an Option shall be exercisable only by the
Participant or the Participant’s guardian or legal representative.  No
Option shall be assignable or transferable by the Participant, except by will or
by the laws of descent and distribution.  Notwithstanding the
foregoing, to the extent permitted by the Committee, in its discretion, and set
forth in the Award Agreement evidencing such Option, an Option shall be
assignable or transferable subject to the applicable limitations, if any,
described in the General Instructions to Form S-8 Registration Statement under
the Securities Act.

     

    7. TERMS AND CONDITIONS OF
STOCK APPRECIATION RIGHTS.

     

    SARs
shall be evidenced by Award Agreements specifying the number of shares of Stock
subject to the Award, in such form as the Committee shall from time to time
establish.  No SAR or purported SAR shall be a valid and binding
obligation of the Company unless evidenced by a fully executed Award
Agreement.  Award Agreements evidencing SARs may incorporate all or
any of the terms of the Plan by reference and shall comply with and be subject
to the following terms and conditions:

     

    7.1 Types
of SARs Authorized.  SARs may be
granted in tandem with all or any portion of a related Option (a “Tandem
SAR”) or may be granted independently of any Option (a “Freestanding
SAR”).  A Tandem SAR may be granted either concurrently with
the grant of the related Option or at any time thereafter prior to the complete
exercise, termination, expiration or cancellation of such related
Option.

     

    7.2 Exercise
Price.  The exercise
price for each SAR shall be established in the discretion of the Committee;
provided, however, that (a) the
exercise price per share subject to a Tandem SAR shall be the exercise price per
share under the related Option and (b) the exercise price per share subject to a
Freestanding SAR shall be not less than the Fair Market Value of a share of
Stock on the effective date of grant of the SAR.

     

    7.3 Exercisability
and Term of SARs.

     

    (a) Tandem
SARs.  Tandem SARs shall be exercisable only at the time and to
the extent, and only to the extent, that the related Option is exercisable,
subject to such provisions as the Committee may specify where the Tandem SAR is
granted with respect to less than the full number of shares of Stock subject to
the related Option.  The Committee may, in its discretion, provide in
any Award Agreement evidencing a Tandem SAR that such SAR may not be exercised
without the advance approval of the Company and, if such approval is not given,
then the Option shall nevertheless remain exercisable in accordance with its
terms.  A Tandem SAR shall terminate and cease to be exercisable no
later than the date on which the related Option expires or is terminated or
canceled.  Upon the exercise of a Tandem SAR with

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    respect
to some or all of the shares subject to such SAR, the related Option shall be
canceled automatically as to the number of shares with respect to which the
Tandem SAR was exercised.  Upon the exercise of an Option related to a
Tandem SAR as to some or all of the shares subject to such Option, the related
Tandem SAR shall be canceled automatically as to the number of shares with
respect to which the related Option was exercised.

     

    (b) Freestanding
SARs.  Freestanding SARs shall be exercisable at such time or
times, or upon such event or events, and subject to such terms, conditions,
performance criteria and restrictions as shall be determined by the Committee
and set forth in the Award Agreement evidencing such SAR; provided, however, that no Freestanding
SAR shall be exercisable after the expiration of seven (7) years after the
effective date of grant of such SAR.

     

    7.4 Exercise
of SARs.  Upon the exercise
(or deemed exercise pursuant to Section 7.5) of an SAR, the Participant (or the
Participant’s legal representative or other person who acquired the right to
exercise the SAR by reason of the Participant’s death) shall be entitled to
receive payment of an amount for each share with respect to which the SAR is
exercised equal to the excess, if any, of the Fair Market Value of a share of
Stock on the date of exercise of the SAR over the exercise
price.  Payment of such amount shall be made in cash, shares of Stock,
or any combination thereof as determined by the Committee.  Unless
otherwise provided in the Award Agreement evidencing such SAR, payment shall be
made in a lump sum as soon as practicable following the date of exercise of the
SAR.  The Award Agreement evidencing any SAR may provide for deferred
payment in a lump sum or in installments.  When payment is to be made
in shares of Stock, the number of shares to be issued shall be determined on the
basis of the Fair Market Value of a share of Stock on the date of exercise of
the SAR.  For purposes of Section 7, an SAR shall be deemed exercised
on the date on which the Company receives notice of exercise from the
Participant.

     

    7.5 Deemed
Exercise of SARs.  If, on the date
on which an SAR would otherwise terminate or expire, the SAR by its terms
remains exercisable immediately prior to such termination or expiration and, if
so exercised, would result in a payment to the holder of such SAR, then any
portion of such SAR which has not previously been exercised shall automatically
be deemed to be exercised as of such date with respect to such
portion.

     

    7.6 Effect
of Termination of Service.  An SAR shall be
exercisable after a Participant’s termination of Service to such extent and
during such period as determined by the Committee, in its discretion, and set
forth in the Award Agreement evidencing such SAR.

     

    7.7 Nontransferability
of SARs.  SARs may not be
assigned or transferred in any manner except by will or the laws of descent and
distribution, and, during the lifetime of the Participant, shall be exercisable
only by the Participant or the Participant’s guardian or legal
representative.

     

    8. TERMS AND CONDITIONS OF
STOCK AWARDS.

     

    Stock
Awards shall be evidenced by Award Agreements specifying whether the Award is a
Stock Bonus, a Stock Purchase Right or a Restricted Stock Unit, and the number
of shares of Stock subject to the Award, in such form as the Committee shall
from time to time

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    establish.  No
Stock Award or purported Stock Award shall be a valid and binding obligation of
the Company unless evidenced by a fully executed Award
Agreement.  Award Agreements evidencing Stock Awards may incorporate
all or any of the terms of the Plan by reference and shall comply with and be
subject to the following terms and conditions:

     

    8.1 Types
of Stock Awards Authorized.  Stock Awards may
be in the form of a Stock Bonus, a Stock Purchase Right, or a Restricted Stock
Unit.  Stock Awards may be granted upon such conditions as the
Committee shall determine, including, without limitation, upon the attainment of
one or more Performance Goals described in Section 9.4.  If either the
grant of a Stock Award or the lapsing of the Restriction Period is to be
contingent upon the attainment of one or more Performance Goals, the Committee
shall follow procedures substantially equivalent to those set forth in Sections
9.3 through 9.5(a).

     

    8.2 Purchase
Price.  The purchase
price for shares of Stock issuable under each Stock Purchase Right shall be
established by the Committee in its discretion.  No monetary payment
(other than applicable tax withholding) shall be required as a condition of
receiving shares of Stock pursuant to a Stock Bonus, the consideration for which
shall be services actually rendered to a Participating Company or for its
benefit.  Notwithstanding the foregoing, the Participant shall furnish
consideration in the form of cash or past services rendered to a Participating
Company or for its benefit having a value not less than the par value of the
shares of Stock subject to such Stock Award.

     

    8.3 Purchase
Period.  A Stock Purchase
Right shall be exercisable within a period established by the Committee, which
shall in no event exceed thirty (30) days from the effective date of the grant
of the Stock Purchase Right; provided, however, that no Stock
Purchase Right granted to a prospective Employee may become exercisable prior to
the date on which such person commences Service.

     

    8.4 Payment
of Purchase Price.  Except as
otherwise provided below, payment of the purchase price for the number of shares
of Stock being purchased pursuant to any Stock Purchase Right or delivered
pursuant to a Restricted Stock Unit shall be made (i) in cash, by check, or cash
equivalent, (ii) by such other consideration as may be approved by the Committee
from time to time to the extent permitted by applicable law, or (iii) by any
combination thereof, in each case consistent with any requirements under
applicable law regarding payment in respect of the “par value” of the
Stock.  The Committee may at any time or from time to time grant Stock
Purchase Rights or Restricted Stock Units which do not permit all of the
foregoing forms of consideration to be used in payment of the purchase price or
which otherwise restrict one or more forms of consideration.  Stock
Bonuses shall be issued in consideration for past services actually rendered to
a Participating Company or for its benefit.  At the time of grant of
Restricted Stock Units, the Committee will determine the consideration, if any,
to be paid by the Participant upon delivery of each share of Stock acquired
pursuant to Restricted Stock Units.

     

    8.5 Vesting;
Restrictions on Transfer; Deferral.  Shares issued
pursuant to any Stock Award may or may not be made subject to vesting
conditioned upon the satisfaction of such Service requirements, conditions,
restrictions or performance criteria, including, without limitation, Performance
Goals as described in Section 9.4 (the “Vesting
Conditions”), as shall be

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    established
by the Committee and set forth in the Award Agreement evidencing such
Award.  During any period (the “Restriction
Period”) in which shares acquired pursuant to a Stock Award remain
subject to Vesting Conditions, such shares may not be sold, exchanged,
transferred, pledged, assigned or otherwise disposed of other than pursuant to a
Change of Control as provided in Section 11, or as provided in Section
8.8.  Upon request by the Company, each Participant shall execute any
agreement evidencing such transfer restrictions prior to the receipt of shares
of Stock hereunder and shall promptly present to the Company any and all
certificates representing shares of Stock acquired hereunder for the placement
on such certificates of appropriate legends evidencing any such transfer
restrictions. Restricted Stock Units may be subject to such conditions that may
delay the delivery of the shares of Stock (or their cash equivalent) subject to
Restricted Stock Units after the vesting of such Award.

     

    8.6 Voting
Rights; Dividends and Distributions.  Except as
provided in this Section, Section 8.5 and any Award Agreement, during the
Restriction Period applicable to shares subject to a Stock Award, the
Participant shall have all of the rights of a stockholder of the Company holding
shares of Stock, including the right to vote such shares and to receive all
dividends and other distributions paid with respect to such
shares.  With respect to Restricted Stock Units, the Committee may, in
its sole discretion, provide that dividend equivalents shall not be paid or
provide either for the current payment of dividend equivalents or for the
accumulation and payment of dividend equivalents to the extent that the
Restricted Stock Units become nonforfeitable.  However, in the event
of a dividend or distribution paid in shares of Stock or any other adjustment
made upon a change in the capital structure of the Company as described in
Section 4.2, then any and all new, substituted or additional securities or other
property (other than normal cash dividends) to which the Participant is entitled
by reason of the Participant’s Stock Award shall be immediately subject to the
same Vesting Conditions and, if applicable, deferral elections as the shares
subject to the Stock Award with respect to which such dividends or distributions
were paid or adjustments were made.

     

    8.7 Effect
of Termination of Service.  Unless otherwise
provided by the Committee in the grant of a Stock Award and set forth in the
Award Agreement, if a Participant’s Service terminates for any reason, whether
voluntary or involuntary (including the Participant’s death or disability), then
(i) the Company shall have the option to repurchase for the purchase price paid
by the Participant any shares acquired by the Participant pursuant to a Stock
Purchase Right which remain subject to Vesting Conditions as of the date of the
Participant’s termination of Service and (ii) the Participant shall forfeit to
the Company any shares acquired by the Participant pursuant to a Stock Bonus
which remain subject to Vesting Conditions as of the date of the Participant’s
termination of Service and (iii) the Participant shall forfeit all rights in any
portion of a Restricted Stock Unit award that has not vested as of the date of
the Participant’s termination of Service.  The Company shall have the
right to assign at any time any repurchase right it may have, whether or not
such right is then exercisable, to one or more persons as may be selected by the
Company.

     

    8.8 Nontransferability
of Stock Award Rights.  Rights to acquire
shares of Stock pursuant to a Stock Award may not be subject in any manner to
anticipation, alienation, sale, exchange, transfer, assignment, pledge,
encumbrance or garnishment by creditors of the Participant or the Participant’s
beneficiary, except by will or the laws of descent and
distribution,

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    and,
during the lifetime of the Participant, shall be exercisable only by the
Participant or the Participant’s guardian or legal representative.

     

    9. TERMS AND CONDITIONS OF
PERFORMANCE AWARDS.

     

    Performance
Awards shall be evidenced by Award Agreements in such form as the Committee
shall from time to time establish.  No Performance Award or purported
Performance Award shall be a valid and binding obligation of the Company unless
evidenced by a fully executed Award Agreement.  Award Agreements
evidencing Performance Awards may incorporate all or any of the terms of the
Plan by reference and shall comply with and be subject to the following terms
and conditions:

     

    9.1 Types
of Performance Awards Authorized.  Performance
Awards may be in the form of either Performance Shares or Performance
Units.  Each Award Agreement evidencing a Performance Award shall
specify the number of Performance Shares or Performance Units subject thereto,
the Performance Award Formula, the Performance Goal (s) and Performance Period
applicable to the Award, and the other terms, conditions and restrictions of the
Award.

     

    9.2 Initial
Value of Performance Shares and Performance Units.  Unless otherwise
provided by the Committee in granting a Performance Award, each Performance
Share shall have an initial value equal to the Fair Market Value of one (1)
share of Stock, subject to adjustment as provided in Section 4.2, on the
effective date of grant of the Performance Share, and each Performance Unit
shall have an initial value of one hundred dollars ($100).  The final
value payable to the Participant in settlement of a Performance Award determined
on the basis of the applicable Performance Award Formula will depend on the
extent to which Performance Goals established by the Committee are attained
within the applicable Performance Period established by the
Committee.

     

    9.3 Establishment
of Performance Period, Performance Goals and Performance Award
Formula.  In granting each
Performance Award, the Committee shall establish in writing the applicable
Performance Period, Performance Award Formula and one or more Performance Goals
which, when measured at the end of the Performance Period, shall determine on
the basis of the Performance Award Formula the final value of the Performance
Award to be paid to the Participant.  Although Performance Awards
under the Plan will not qualify as performance-based compensation for purposes
of Section 162(m) because stockholders of the Company have not approved certain
provisions of the Plan as required by Section 162(m), the Committee shall seek
to comply with Section 162(m) with respect to Performance Awards, except as
otherwise provided herein.  Accordingly, unless otherwise permitted in
compliance with the requirements under Section 162(m) with respect to
“performance-based compensation,” the Committee shall establish the Performance
Goal(s) and Performance Award Formula applicable to each Performance Award no
later than the earlier of (a) the date ninety (90) days after the commencement
of the applicable Performance Period or (b) the date on which 25% of the
Performance Period has elapsed, and, in any event, at a time when the outcome of
the Performance Goals remains substantially uncertain.  Once
established, the Performance Goals and Performance Award Formula shall not be
changed during the Performance Period.  The Company shall notify each
Participant granted a Performance Award

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    of the
terms of such Award, including the Performance Period, Performance Goal(s) and
Performance Award Formula.

     

    9.4 Measurement
of Performance Goals.  Performance Goals
shall be established by the Committee on the basis of targets to be attained
(“Performance
Targets”) with respect to one or more measures of business or financial
performance (each, a “Performance
Measure”), subject to the following:

     

    (a) Performance
Measures.  Performance Measures shall have the same meanings as
used in the Company’s financial statements, or, if such terms are not used in
the Company’s financial statements, they shall have the meaning applied pursuant
to generally accepted accounting principles, or as used generally in the
Company’s industry.  Performance Measures shall be calculated with
respect to the Company and each Subsidiary Corporation consolidated therewith
for financial reporting purposes or such division or other business unit as may
be selected by the Committee.  For purposes of the Plan, the
Performance Measures applicable to a Performance Award shall be calculated in
accordance with generally accepted accounting principles, but prior to the
accrual or payment of any Performance Award for the same Performance Period and
excluding the effect (whether positive or negative) of any change in accounting
standards or any extraordinary, unusual or nonrecurring item, as determined by
the Committee, occurring after the establishment of the Performance Goals
applicable to the Performance Award.  Performance Measures may be one
or more of the following, as determined by the Committee:

     

    (i) growth in
revenue;

     

    (ii) growth in
the market price of the Stock;

     

    (iii) operating
margin;

     

    (iv) gross
margin;

     

    (v) operating
income;

     

    (vi) pre-tax
profit;

     

    (vii) earnings
before interest, taxes and depreciation;

     

    (viii) net
income;

     

    (ix) total
return on shares of Stock relative to the increase in an appropriate index as
may be selected by the Committee;

     

    (x) earnings
per share;

     

    (xi) return on
stockholder equity;

     

    (xii) return on
net assets;

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    (xiii) expenses;

     

    (xiv) return on
capital;

     

    (xv) economic
value added;

     

    (xvi) market
share; and

     

    (xvii) cash
flow, as indicated by book earnings before interest, taxes, depreciation and
amortization.

     

    (b) Performance
Targets.  Performance Targets may include a minimum, maximum,
target level and intermediate levels of performance, with the final value of a
Performance Award determined under the applicable Performance Award Formula by
the level attained during the applicable Performance Period.  A
Performance Target may be stated as an absolute value or as a value determined
relative to a standard selected by the Committee.

     

    9.5 Settlement
of Performance Awards.

     

    (a) Determination of
Final Value.  As soon as practicable following the completion
of the Performance Period applicable to a Performance Award, the Committee shall
certify in writing the extent to which the applicable Performance Goals have
been attained and the resulting final value of the Award earned by the
Participant and to be paid upon its settlement in accordance with the applicable
Performance Award Formula.

     

    (b) Discretionary
Adjustment of Award Formula.  In its discretion, the Committee
may, either at the time it grants a Performance Award or at any time thereafter,
provide for the positive or negative adjustment of the Performance Award Formula
applicable to a Performance Award granted to any Participant who is not a
“covered employee” within the meaning of Section 162(m) (a “Covered
Employee”) to reflect such Participant’s individual performance in his or
her position with the Company or such other factors as the Committee may
determine.  If permitted under a Covered Employee’s Award Agreement,
the Committee shall have the discretion, on the basis of such criteria as may be
established by the Committee, to reduce some or all of the value of the
Performance Award that would otherwise be paid to the Covered Employee upon its
settlement notwithstanding the attainment of any Performance Goal and the
resulting value of the Performance Award determined in accordance with the
Performance Award Formula.  No such reduction may result in an
increase in the amount payable upon settlement of another Participant’s
Performance Award.

     

    (c) Effect of Leaves
of Absence.  Unless otherwise required by law, payment of the
final value, if any, of a Performance Award held by a Participant who has taken
in excess of thirty (30) days of leaves of absence during a Performance Period
shall be prorated on the basis of the number of days of the Participant’s
Service during the Performance Period during which the Participant was not on a
leave of absence.

     

    (d) Notice to
Participants.  As soon as practicable following the Committee’s
determination and certification in accordance with Sections 9.5(a) and (b), the
Company shall notify each Participant of the determination of the
Committee.

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    (e) Payment in
Settlement of Performance Awards.  As soon as practicable
following the Committee’s determination and certification in accordance with
Sections 9.5(a) and (b), payment shall be made to each eligible Participant (or
such Participant’s legal representative or other person who acquired the right
to receive such payment by reason of the Participant’s death) of the final value
of the Participant’s Performance Award.  Payment of such amount shall
be made in cash, shares of Stock, or a combination thereof as determined by the
Committee.  Unless otherwise provided in the Award Agreement
evidencing a Performance Award, payment shall be made in a lump
sum.  An Award Agreement may provide for deferred payment in a lump
sum or in installments.  If any payment is to be made on a deferred
basis, the Committee may, but shall not be obligated to, provide for the payment
during the deferral period of Dividend Equivalents or interest.

     

    (f) Provisions
Applicable to Payment in Shares.  If payment is to be made in
shares of Stock, the number of such shares shall be determined by dividing the
final value of the Performance Award by the value of a share of Stock determined
by the method specified in the Award Agreement.  Such methods may
include, without limitation, the closing market price on a specified date (such
as the settlement date) or an average of market prices over a series of trading
days.  Shares of Stock issued in payment of any Performance Award may
be fully vested and freely transferable shares or may be shares of Stock subject
to Vesting Conditions as provided in Section 8.5.  Any shares subject
to Vesting Conditions shall be evidenced by an appropriate Award Agreement and
shall be subject to the provisions of Sections 8.5 through 8.8
above.

     

    9.6 Dividend
Equivalents.  In its
discretion, the Committee may provide in the Award Agreement evidencing any
Performance Share Award that the Participant shall be entitled to receive
Dividend Equivalents with respect to the payment of cash dividends on Stock
having a record date prior to the date on which the Performance Shares are
settled or forfeited.  Dividend Equivalents may be paid currently or
may be accumulated and paid to the extent that Performance Shares become
nonforfeitable, as determined by the Committee.  Settlement of
Dividend Equivalents may be made in cash, shares of Stock, or a combination
thereof as determined by the Committee, and may be paid on the same basis as
settlement of the related Performance Share as provided in Section
9.5.  Dividend Equivalents shall not be paid with respect to
Performance Units.

     

    9.7 Effect
of Termination of Service.  The effect of a
Participant’s termination of Service on the Participant’s Performance Award
shall be as determined by the Committee, in its discretion, and set forth in the
Award Agreement evidencing such Performance Award.

     

    9.8 Nontransferability
of Performance Awards.  Prior to
settlement in accordance with the provisions of the Plan, no Performance Award
may be subject in any manner to anticipation, alienation, sale, exchange,
transfer, assignment, pledge, encumbrance, or garnishment by creditors of the
Participant or the Participant’s beneficiary, except by will or by the laws of
descent and distribution.  All rights with respect to a Performance
Award granted to a Participant hereunder shall be exercisable during his or her
lifetime only by such Participant or the Participant’s guardian or legal
representative.

     

    

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    10. STANDARD FORMS OF AWARD
AGREEMENT.

     

    10.1 Award
Agreements.  Each Award shall
comply with and be subject to the terms and conditions set forth in the
appropriate form of Award Agreement approved by the Committee and as amended
from time to time.  Any Award Agreement may consist of an appropriate
form of Notice of Grant and a form of Agreement incorporated therein by
reference, or such other form or forms as the Committee may approve from time to
time.

     

    10.2 Authority
to Vary Terms.  The Committee
shall have the authority from time to time to vary the terms of any standard
form of Award Agreement either in connection with the grant or amendment of an
individual Award or in connection with the authorization of a new standard form
or forms; provided,
however, that the terms
and conditions of any such new, revised or amended standard form or forms of
Award Agreement are not inconsistent with the terms of the Plan.

     

    11. CHANGE OF
CONTROL.

     

    11.1 Awards
Granted Prior to January 24, 2008.  The following
provisions shall control for Awards granted prior to January 24,
2008:

     

    (a) Except as
otherwise provided in a Participant’s Award Agreement:

     

    (i) An “Ownership Change
Event” shall be deemed to have occurred if any of the following occurs
with respect to the Company: (i) the direct or indirect sale or exchange by the
stockholders of the Company of all or substantially all of the voting stock of
the Company; (ii) a merger or consolidation in which the Company is a party;
(iii) the sale, exchange, or transfer of all or substantially all of the assets
of the Company (other than a sale, exchange or transfer to one or more
subsidiaries of the Company); or (iv) a liquidation or dissolution of the
Company.

     

    (ii) A “Change in
Control” shall mean an Ownership Change Event or series of related
Ownership Change Events (collectively, a “Transaction”)
in which the stockholders of the Company immediately before the Transaction do
not retain immediately after the Transaction, direct or indirect beneficial
ownership of more than fifty percent (50%) of the total combined voting power of
the outstanding voting securities of the Company or, in the case of an Ownership
Change Event described in Section 11.1(a)(iii), the entity to which the assets
of the Company were transferred.

     

    (b) Effect of Change in Control on
Options, SARs and Restricted Stock Units.  In the event of a
Change in Control, the surviving, continuing, successor, or purchasing entity or
parent thereof, as the case may be (the “Acquiror”),
may, without the consent of any Participant, either assume the Company’s rights
and obligations under outstanding Options, SARs and Restricted Stock Units or
substitute for outstanding Options, SARs and Restricted Stock Units
substantially equivalent equity awards for the Acquiror’s stock.  In
the event the Acquiror elects not to assume or substitute for outstanding
Options, SARs or Restricted Stock Units in connection with a Change in Control,
the Committee shall provide that any unexercised and/or unvested portions of
such outstanding Awards shall be immediately exercisable and vested in full as
of the date thirty (30) days prior to the date of the Change in

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    Control.  The
exercise and/or vesting of any Option, SAR or Restricted Stock Unit that was
permissible solely by reason of this paragraph shall be conditioned upon the
consummation of the Change in Control.  Any Options, SARs or
Restricted Stock Units which are not assumed or replaced by the Acquiror in
connection with the Change in Control nor exercised as of the time of
consummation of the Change in Control shall terminate and cease to be
outstanding effective as of the time of consummation of the Change in
Control.

     

    (c) Effect of Change in Control on Stock
Awards.  The Committee may, in its discretion, provide in any
Award Agreement evidencing a Stock Award that, in the event of a Change in
Control, the lapsing of the Restriction Period applicable to the shares subject
to the Stock Award held by a Participant whose Service has not terminated prior
to such date shall be accelerated effective as of the date of the Change in
Control to such extent as specified in such Award Agreement.  Any
acceleration of the lapsing of the Restriction Period that was permissible
solely by reason of this Section 11.1(c) and the provisions of such Award
Agreement shall be conditioned upon the consummation of the Change in
Control.

     

    (d) Effect of Change in Control on
Performance Awards.  The Committee may, in its discretion,
provide in any Award Agreement evidencing a Performance Award that, in the event
of a Change in Control, the Performance Award held by a Participant whose
Service has not terminated prior to such date shall become payable effective as
of the date of the Change in Control to such extent as specified in such Award
Agreement.

     

    11.2 Awards
Granted On or After January 24, 2008.  The following
provisions shall control for Awards granted on or after January 24,
2008:

     

    (a) Except as
otherwise provided in a Participant’s Award Agreement, “Change of
Control” shall mean a change of control of the Company of a nature that
would be required to be reported in response to Item 6(e) of Schedule 14A of
Regulation 14A promulgated under the Exchange Act, whether or not the Company is
then subject to such reporting requirement; provided, however, that anything in
this Plan to the contrary notwithstanding, a Change of Control shall be deemed
to have occurred if:

     

    (i) any
individual, partnership, firm, corporation, association, trust, unincorporated
organization or other entity or person, or any syndicate or group deemed to be a
person under Section 14(d)(2) of the Exchange Act, is or becomes the “beneficial
owner” (as defined in Rule 13d-3 of the General Rules and Regulations under the
Exchange Act), directly or indirectly, of securities of the Company representing
30% or more of the combined voting power of the Company’s then outstanding
securities entitled to vote in the election of directors of the
Company;

     

    (ii) during
any period of two (2) consecutive years, individuals who at the beginning of
such period constituted the Board and any new directors, whose election by the
Board or nomination for election by the Company’s stockholders was approved by a
vote of at least three-fourths (3/4ths) of the directors then still in office
who either were directors at the beginning of the period or whose election or
nomination for election was previously so approved (the “Incumbent
Directors”), cease for any reason to constitute a majority
thereof;

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    (iii) there
occurs a reorganization, merger, consolidation or other corporate transaction
involving the Company (a “Transaction”),
in each case with respect to which the stockholders of the Company immediately
prior to such Transaction do not, immediately after the Transaction, own
securities representing more than 50% of the combined voting power of the
Company, a parent of the Company or other corporation resulting from such
Transaction (counting, for this purpose, only those securities held by the
Company’s stockholders immediately after the Transaction that were received in
exchange for, or represent their continuing ownership of, securities of the
Company held by them immediately prior to the Transaction);

     

    (iv) all or
substantially all of the assets of the Company are sold, liquidated or
distributed; or

     

    (v) there is
a “Change of Control” or a “change in the effective control” of the Company
within the meaning of Section 280G of the Code and the regulations promulgated
thereunder;

     

    provided,
that if a Change of Control constitutes a payment event with respect to any
Award which provides for the deferral of compensation that is subject to Section
409A of the Code, the transaction or event described in clauses (i) through (v)
with respect to such Award must also constitute a “change in control event,” as
defined in Treasury Regulation §1.409A-3(i)(5) to the extent required by Section
409A of the Code.

     

    (b) The
Committee or the Board may, in its discretion, provide in any Award Agreement,
severance plan or other individual agreement, that, in the event of a Change of
Control of the Company, the Award held by a Participant shall become vested,
exercisable and/or payable to such extent as specified in such
document.

     

    (c) In the
event of a Change of Control, the surviving, continuing, successor, or
purchasing entity or parent thereof, as the case may be (the “Acquiror”),
may, without the consent of any Participant, either assume the Company’s rights
and obligations under outstanding Awards or substitute for outstanding Awards
substantially equivalent equity awards for the Acquiror’s stock.  In
the event the Acquiror elects not to assume or substitute for outstanding Awards
in connection with a Change of Control, any unexercised and/or unvested portions
of such outstanding Awards shall become immediately exercisable and vested in
full as of immediately prior to the effective date of the Change of
Control.  The exercise and/or vesting of any Award that was
permissible solely by reason of this paragraph 11.2 shall be conditioned upon
the consummation of the Change of Control.  Any Awards which are not
assumed or replaced by the Acquiror in connection with the Change of Control nor
exercised as of the time of consummation of the Change of Control shall
terminate and cease to be outstanding effective as of the time of consummation
of the Change of Control.

     

    12. COMPLIANCE WITH SECURITIES
LAW.

     

    The grant
of Awards and the issuance of shares of Stock pursuant to any Award shall be
subject to compliance with all applicable requirements of federal, state and
foreign law with respect to such securities and the requirements of any stock
exchange or market system

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    upon
which the Stock may then be listed.  In addition, no Award may be
exercised or shares issued pursuant to an Award unless (i) a registration
statement under the Securities Act shall at the time of such exercise or
issuance be in effect with respect to the shares issuable pursuant to the Award
or (ii) in the opinion of legal counsel to the Company, the shares issuable
pursuant to the Award may be issued in accordance with the terms of an
applicable exemption from the registration requirements of the Securities
Act.  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 hereunder 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 issuance of any Stock, the Company may
require the Participant 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.

     

    13. TAX
WITHHOLDING.

     

    13.1 Tax
Withholding in General.  The Company shall
have the right to deduct from any and all payments made under the Plan, or to
require the Participant, through payroll withholding, cash payment or otherwise,
including by means of a Cashless Exercise of an Option, to make adequate
provision for, the federal, state, local and foreign taxes, if any, required by
law to be withheld by the Participating Company Group with respect to an Award
or the shares acquired pursuant thereto.  The Company shall have no
obligation to deliver shares of Stock, to release shares of Stock from an escrow
established pursuant to an Award Agreement, or to make any payment in cash under
the Plan until the Participating Company Group’s tax withholding obligations
have been satisfied by the Participant.

     

    13.2 Withholding
in Shares.  The Company shall
have the right, but not the obligation, to deduct from the shares of Stock
issuable to a Participant upon the exercise or settlement of an Award, or to
accept from the Participant the tender of, a number of whole shares of Stock
having a Fair Market Value, as determined by the Company, equal to all or any
part of the tax withholding obligations of the Participating Company
Group.  The Fair Market Value of any shares of Stock withheld or
tendered to satisfy any such tax withholding obligations shall not exceed the
amount determined by the applicable minimum statutory withholding
rates.

     

    14. TERMINATION OR AMENDMENT OF
PLAN.

     

    The
Committee may terminate or amend the Plan at any time.  However,
without the approval of the Company’s stockholders, there shall be (a) no
increase in the maximum aggregate number of shares of Stock that may be issued
under the Plan (except by operation of the provisions of Section 4), (b) no
change in the class of persons eligible to receive Awards, and (c) no other
amendment of the Plan that would require approval of the Company’s stockholders
under any applicable law, regulation or rule; provided, however, that the
maximum aggregate number of shares of Stock that may be issued under the Plan
may be increased without stockholder approval in accordance with Rule 5635(c)(3)
of the Nasdaq Qualitative Listing Requirements (or any other applicable rule of
the securities exchange on which shares of Stock are then trading) in connection
with business acquisitions by the Company following the Effective
Date.  No termination or amendment of the Plan shall affect any then
outstanding

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    Award
unless expressly provided by the Committee.  In any event, no
termination or amendment of the Plan may adversely affect any then outstanding
Award without the consent of the Participant, unless such termination or
amendment is necessary to comply with any applicable law, regulation or
rule.

     

    15. MISCELLANEOUS
PROVISIONS.

     

    15.1 Repurchase
Rights.  Shares issued
under the Plan may be subject to one or more repurchase options, or other
conditions and restrictions as determined by the Committee in its discretion at
the time the Award is granted.  The Company shall have the right to
assign at any time any repurchase right it may have, whether or not such right
is then exercisable, to one or more persons as may be selected by the
Company.  Upon request by the Company, each Participant shall execute
any agreement evidencing such transfer restrictions prior to the receipt of
shares of Stock hereunder and shall promptly present to the Company any and all
certificates representing shares of Stock acquired hereunder for the placement
on such certificates of appropriate legends evidencing any such transfer
restrictions.

     

    15.2 Provision
of Information.  Each Participant
shall be given access to information concerning the Company equivalent to that
information generally made available to the Company’s common
stockholders.

     

    15.3 Rights
as Employee.  No person, even
though eligible pursuant to Section 5, shall have a right to be selected as a
Participant, or, having been so selected, to be selected again as a
Participant.  Nothing in the Plan or any Award granted under the Plan
shall confer on any Participant a right to remain an Employee, or interfere with
or limit in any way any right of a Participating Company to terminate the
Participant’s Service at any time.  To the extent that an Employee of
a Participating Company other than the Company receives an Award under the Plan,
that Award can in no event be understood or interpreted to mean that the Company
is the Employee’s employer or that the Employee has an employment relationship
with the Company.

     

    15.4 Rights
as a Stockholder.  A Participant
shall have no rights as a stockholder with respect to any shares covered by an
Award until the date of the issuance of such shares (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company).  No adjustment shall be made for dividends,
distributions or other rights for which the record date is prior to the date
such shares are issued, except as provided in Section 4.2 or another provision
of the Plan.

     

    15.5 Fractional
Shares.  The Company shall
not be required to issue fractional shares upon the exercise or settlement of
any Award.

     

    15.6 Beneficiary
Designation.  Subject to local
laws and procedures, each Participant may file with the Company a written
designation of a beneficiary who is to receive any benefit under the Plan to
which the Participant is entitled in the event of such Participant’s death
before he or she receives any or all of such benefit.  Each
designation will revoke all prior designations by the same Participant, shall be
in a form prescribed by the Company, and will be effective only when filed by
the Participant in writing with the Company during the Participant’s
lifetime.  If a married Participant designates a beneficiary other
than the Participant’s spouse, the

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    effectiveness
of such designation may be subject to the consent of the Participant’s
spouse.  If a Participant dies without an effective designation of a
beneficiary who is living at the time of the Participant’s death, the Company
will pay any remaining unpaid benefits to the Participant’s legal
representative.

     

    15.7 Unfunded
Obligation.  Participants
shall have the status of general unsecured creditors of the
Company.  Any amounts payable to Participants pursuant to the Plan
shall be unfunded and unsecured obligations for all purposes, including, without
limitation, Title I of the Employee Retirement Income Security Act of
1974.  No Participating Company shall be required to segregate any
monies from its general funds, or to create any trusts, or establish any special
accounts with respect to such obligations.  The Company shall retain
at all times beneficial ownership of any investments, including trust
investments, which the Company may make to fulfill its payment obligations
hereunder.  Any investments or the creation or maintenance of any
trust or any Participant account shall not create or constitute a trust or
fiduciary relationship between the Committee or any Participating Company and a
Participant, or otherwise create any vested or beneficial interest in any
Participant or the Participant’s creditors in any assets of any Participating
Company.  The Participants shall have no claim against any
Participating Company for any changes in the value of any assets which may be
invested or reinvested by the Company with respect to the Plan.

     

    15.8 Section
409A.  To the extent
that the Committee determines that any Award granted under the Plan is, or may
reasonably be, subject to Section 409A of the Code (together, with any state law
of similar effect, “Section
409A”), the Award Agreement evidencing such Award shall incorporate the
terms and conditions necessary to avoid the consequences described in Section
409A(a)(1) of the Code (or any similar provision).  To the extent
applicable and permitted by law, the Plan and Award Agreements shall be
interpreted in accordance with Section 409A and Department of Treasury
regulations and other interpretive guidance issued thereunder, including without
limitation any such regulations or other guidance that may be issued or amended
after the date of grant of any Award hereunder.

     

    Notwithstanding
any provision of the Plan to the contrary, in the event that the Committee
determines that any Award is, or may reasonably be, subject to Section 409A and
related Department of Treasury guidance (including such Department of Treasury
guidance issued from time to time), the Committee may, without the Participant’s
consent, adopt such amendments to the Plan and the applicable Award Agreement or
adopt other policies and procedures (including amendments, policies and
procedures with retroactive effect), or take any other actions, that the
Committee determines are necessary or appropriate to (A) exempt the Award from
Section 409A and/or preserve the intended tax treatment of the benefits provided
with respect to the Award, or (B) comply with the requirements of Section 409A
and related Department of Treasury guidance.

     

    In
addition, and except as otherwise set forth in the applicable Award Agreement,
if the Company determines that any Award granted under this Plan constitutes, or
may reasonably constitute, “deferred compensation” under Section 409A and the
Participant is a “specified employee” of the Company at the relevant date, as
such term is defined in Section 409A (a)(2)(B)(i), then any payment or benefit
resulting from such Award will be delayed until the earliest date following the
Participant’s “separation from service” with the Participating

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    Company
Group within the meaning of Section 409A on which the Company can provide such
payment or benefit to the Participant without the Participant’s incurrence of
any additional tax or interest pursuant to Section 409A, with all payments or
benefits due thereafter occurring in accordance with the original
schedule.  In addition, this Plan and the benefits to be provided
hereunder are intended to comply in all respects with the applicable provisions
of Section 409A.

     

    Notwithstanding
anything to the contrary contained herein, neither the Company nor any of its
Affiliates shall be responsible for, or required to reimburse or otherwise make
any Participant whole for, any tax or penalty imposed on, or losses incurred by,
any Participant that arises in connection with the potential or actual
application of Section 409A to any Award granted hereunder.

     

    

     

    (Remainder of Page Intentionally Left
Blank)

     

    
      
        
           

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the undersigned Secretary of the Company certifies that the
foregoing Adobe Systems Incorporated Amended 2005 Equity Incentive Assumption
Plan, as amended and restated, was duly adopted by the Executive Compensation
Committee of the Board of Directors of the Company on November 16,
2009.

     

    /s/ KAREN COTTLE                                                                         

    Karen
Cottle, Secretaryex10_71.htm

    
      EXHIBIT 10.71

    

    ADOBE
SYSTEMS INCORPORATED

    2010
NON-EMPLOYEE DIRECTOR COMPENSATION POLICY

     

    (Effective
November 28, 2009)

     

    Cash
Compensation

     

    Board
Member Annual Retainer

     

    
      	
               
      

            	
              •

            	
              $50,000
      annual fee

            

    

     

    Board
Chair Annual Retainer

     

    
      	
               
      

            	
              •

            	
              $50,000
      annual fee for each Co-Chair

            

    

     

    Committee
Member Annual Retainers

     

    • Audit
Committee – $20,000 annual fee

    • Executive
Compensation Committee – $15,000 annual fee

    • Nominating
and Governance Committee – $7,500 annual fee

    

    Committee
Chair Retainers

     

    • Audit
Committee – $40,000 annual fee

    • Executive
Compensation Committee – $30,000 annual fee

    • Nominating
and Governance Committee – $15,000 annual fee

    

    All cash
compensation is earned on a fiscal year basis, paid at the end of each
quarter.  Directors who commence service mid-quarter or who terminate
service mid-quarter will receive pro-rated retainers to be paid at the end of
the applicable quarter.

     

    Each
Director may elect to defer 5% to 100% of his or her cash compensation in the
Adobe Deferred Compensation Plan by timely submitting an election to the
Company.

     

    Equity
Compensation

     

    Initial
Equity Grant

     

    
      	
              •  

            	
              A
      restricted stock unit award will be granted to each Director on the day he
      or she joins the Board of Directors and shall have an aggregate value of
      $450,000 (Note: Directors receiving an initial award will not be eligible
      to receive an annual award until the second Annual Meeting of Stockholders
      after joining the Board. Directors who first join the Board upon being
      elected at an Annual Meeting of Stockholders will receive an annual award
      at the next year’s Annual Meeting, as their second Annual
      Meeting)

            

    

    
      	
              •  

            	
              Target
      grant value converted to restricted stock units is based on the average
      stock price over the 30 calendar days ending on the day before the date of
      grant

            

    

    
      	
              •  

            	
              The
      initial equity award will vest over a two-year period, 50% each year on
      the anniversary of the grant date

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

        
           

        

      

    

    Annual
Equity Grant

     

    
      	
              •  

            	
              An
      annual equity award will be granted on the business day immediately
      following the date of our Annual Meeting of Stockholders and shall have an
      aggregate value of $210,000

            

    

    
      	
              •  

            	
              Directors
      may elect to receive their annual equity award in the form of 100% stock
      options, 100% restricted stock units or 50% of
  each

            

    

    
      	
              •  

            	
              Annual
      award elections must be made in accordance with the submission dates set
      by Company, but in no event may the election be made after the beginning
      of the fiscal year in which the equity grant will be made.  If
      the Company does not timely receive an equity grant election from any
      Director, the equity award to that Director will automatically be granted
      in the form of 100% restricted stock
units

            

    

    
      	
              •  

            	
              Target
      grant value converted to restricted stock units is based on the average
      stock price over the 30 calendar days ending on the day before the date of
      grant

            

    

    
      	
              •  

            	
              Target
      grant value converted to stock options is based on 1:3 conversion of
      restricted stock units to stock
options

            

    

    
      	
              •  

            	
              If
      a Director elects the 50% split and the stock option conversion results in
      a partial stock option share, such partial stock option share shall not be
      granted (i.e., the grant will be  rounded down to the nearest
      whole share); however, the number of restricted stock units granted shall
      in such case be increased by one, so that the number of restricted stock
      units granted to the Director shall be exactly half of the number of
      restricted stock units that would have been awarded had the Director
      chosen to receive 100% restricted stock
units

            

    

    
      	
              •  

            	
              All
      stock options will have a term of seven
years

            

    

    
      	
              •  

            	
              The
      annual equity award will vest 100% on the day immediately preceding the
      date of our next Annual Meetings of
Stockholders

            

    

    

    Each
Director may elect to defer either 0% or 100% (per vesting tranche) of his or
her restricted stock unit award in the Adobe Deferred Compensation Plan by
timely submitting an election.

     

    All
equity grants are subject to our Stock Ownership Guidelines.

     

    This
policy will be reviewed annually.

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