Document:

Exhibit 10.3

 

	
  

  	
   

  	
  25 Orinda Way

  Orinda,
  CA 94563

t.
  925 253 4500
f.
  925 253 4599

www.intraware.com

  

 

August 1, 2005

 

Wendy A. Nieto

Chief Financial Officer
and Executive Vice President

Intraware, Inc.

25 Orinda Way

Orinda, CA 94563

 

Dear Wendy:

 

I am delighted to inform
you that the Compensation Committee has approved the following bonus plan for
you for the 2006 fiscal year.  You will
be eligible to receive a cash bonus of $60,000 if Intraware achieves certain
corporate goals with respect to:

 

1.               Intraware’s annual
revenue growth between fiscal years 2005 and 2006,

 

2.               decrease in Intraware’s
loss from operations between fiscal years 2005 and 2006,

 

3.               Intraware’s net
cash provided from operating activities in fiscal year 2006, and

 

4.               Intraware’s cash
balance at the end of fiscal year 2006, net of amounts payable as bonuses.

 

The specific dollar
amount associated with each goal will be communicated to you separately by the
Compensation Committee.

 

Any bonus will be paid
within 15 days after the issuance of the fiscal year-end audit report by
Intraware’s independent registered public accounting firm for the 2006 fiscal
year.  Any payout of a bonus is subject
to final approval by the Compensation Committee.

 

	
  Very truly yours,

  
	
   

  
	
  /s/ MELINDA ERICKS

  	
   

  
	
   

  
	
  Melinda Ericks

  
	
  Director of Human
  ResourcesExhibit
10.4

 

	
  

  	
   

  	
  25 Orinda Way
Orinda,
  CA 94563

t.
  925 253 4500
f.
  925 253 4599

www.intraware.com

  

 

August 1, 2005

 

John J. Moss

Senior Vice President and
General Counsel

Intraware, Inc.

25 Orinda Way

Orinda, CA 94563

 

Dear John:

 

I am delighted to inform
you that the Compensation Committee has approved the following bonus plan for
you for the 2006 fiscal year.  You will
be eligible to receive a cash bonus of $46,000 if Intraware achieves certain
corporate goals with respect to:

 

1.               Intraware’s
annual revenue growth between fiscal years 2005 and 2006,

 

2.               decrease
in Intraware’s loss from operations between fiscal years 2005 and 2006,

 

3.               Intraware’s
net cash provided from operating activities in fiscal year 2006, and

 

4.               Intraware’s
cash balance at the end of fiscal year 2006, net of amounts payable as bonuses.

 

The specific dollar
amount associated with each goal will be communicated to you separately by the
Compensation Committee.

 

Any bonus will be paid
within 15 days after the issuance of the fiscal year-end audit report by
Intraware’s independent registered public accounting firm for the 2006 fiscal
year.  Any payout of a bonus is subject
to final approval by the Compensation Committee.

 

	
  Very truly yours,

  
	
   

  
	
  /s/ MELINDA ERICKS

  	
   

  
	
   

  
	
  Melinda Ericks

  
	
  Director of Human
  ResourcesExhibit 10.5

 

AMENDMENT TWO

TO

INTRAWARE, INC.

CHANGE OF CONTROL SEVERANCE AGREEMENT

 

This amendment (“Amendment
Two”) amends the Change of Control Severance Agreement dated June 19, 2001
between Intraware, Inc. (the “Company”) and Peter Jackson (the “Employee”), and
all prior amendments thereto (the “Agreement”). 
The parties hereby amend the Agreement, effective as of the latest date
set forth by the signatures of the parties hereto below.

 

1.             Severance Payment.  Subpart 3(a)(1) is deleted and replaced with
the following:

 

               (1)  Severance Payment.  A cash payment in an amount equal to one
hundred percent (100%) of the Employee’s Annual Compensation plus payment of
one hundred percent (100%) the current year bonus award based on the target
bonus for the Employee;

 

2,             Continued Employee Benefits.  The third sentence of subpart 3(a)(2) is
deleted and replaced with the following:

 

Company-Paid
Coverage shall continue until the earlier of (i) one (1) year from the date of
the Involuntary Termination or (ii) the date that the Employee and his
dependents become covered under another employer’s group health, dental or life
insurance plans that provide Employee and his dependents with comparable
benefits and levels of coverage.

 

Subject to the above modification, the Agreement shall remain in full
force and effect.

 

	
  COMPANY

  	
  INTRAWARE, INC.

  
	
   

  	
  By:

  	
  /s/ WENDY A. NIETO

  	
   

  
	
   

  	
  Name:

  	
  Wendy A. Nieto

  
	
   

  	
  Title:

  	
  Chief Financial Officer
  and Executive Vice President

  
	
   

  	
  Date:

  	
  September 15, 2005

  
	
  EMPLOYEE

  	
  Signed:

  	
  /s/ PETER H.
  JACKSON

  	
   

  
	
   

  	
  Date:

  	
  September 16, 2005Exhibit 10.2

 

ADOBE SYSTEMS INCORPORATED

AMENDED 1994 PERFORMANCE AND RESTRICTED STOCK PLAN

 

1.                                       Establishment
and Purpose.

 

(a)                                  Establishment.  The Adobe Systems Incorporated 1989
Restricted Stock Plan was initially adopted on February 9, 1989 (the “Initial Plan”).  The
Initial Plan was amended and restated in its entirety as the “1994 Performance
and Restricted Stock Plan” (the “Plan”)
effective as of August 31, 1994, the date it was approved by the
stockholders of the Company.  This
amendment is effective as of the date it is approved by the Board of Directors
of the Company (the “Board”).

 

(b)                                 Purpose.  The purpose of the Plan is to attract, retain
and reward key employees of Adobe Systems Incorporated and any successor
corporation thereto (collectively referred to as the “Company”),
and any present or future parent and/or subsidiary corporations of the Company
(all of whom along with the Company being individually referred to as a “Participating Company” and collectively referred to as the “Participating Company Group”), and to motivate such persons
to contribute to the financial success and progress of the Participating
Company Group.  For purposes of the Plan,
a parent corporation and a subsidiary corporation shall be as defined in
sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as
amended (the “Code”).

 

2.                                       Administration.

 

(a)                                  Administration
by Committee.  The Plan shall be
administered by one or more duly appointed committees (individually, a “Committee”) of the Board; provided, however, that with
respect to the participation of individuals who are subject to the provisions
of Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or who are divisional officers of the
Participating Company Group, the Plan shall be administered by a Committee
consisting of not less than two directors each of whom is both (i) a “Non-Employee
Director “ within the meaning of Rule 16b-3 under the Exchange Act or any
successor rule (“Rule 16b-3”)
and (ii) an “outside director” for purposes of Section 162(m) of the
Code and the regulations promulgated thereunder.  The Committee shall have all of the powers
vested in it by the terms of the Plan, subject to the limitations described
herein, including the full and final authority in its sole discretion to:

 

(i)                                     select
the eligible persons to whom (a “Participant”),
and the time at which, awards shall be granted under the Plan;

 

(ii)                                  determine
type of award granted and the number of shares of stock, units or other
consideration subject to awards (which need not be identical);

 

(iii)                               determine
the terms and conditions of each award granted, including, without limitation,
the terms of vesting, if any, the effect of a Participant’s termination of
employment with the Participating Company Group, the method for satisfaction of
any tax

 

 

withholding obligation arising in connection with any award, and all
other terms and conditions of the award not inconsistent with the terms of the
Plan;

 

(iv)                              determine
the performance goals and other conditions, if any, for the settlement of any
award and whether such goals and conditions have been satisfied;

 

(v)                                 determine
whether an award shall be paid in cash, in shares of stock or in any
combination thereof;

 

(vi)                              determine
whether payment of an award should be reduced or eliminated;

 

(vii)                           modify
or amend any award, or waive any restrictions or conditions applicable to any
award;

 

(viii)                        accelerate,
continue, extend or defer the payment or vesting of any award, including with
respect to the period following a Participant’s termination of employment with
the Participating Company Group;

 

(ix)                                determine
the fair market value of the common stock of the Company;

 

(x)                                   authorize
any person to execute on behalf of the Company any instrument required to
effectuate the grant of an award;

 

(xi)                                prescribe,
amend or rescind rules, regulations and policies relating to the Plan;

 

(xii)                             approve
one or more forms of agreement for use under the Plan;

 

(xiii)                          construe
and interpret the Plan and any agreement used under the Plan and define the
terms employed herein and therein;

 

(xiv)                         make
all other determinations and take such other action with respect to the Plan
and any award granted hereunder as the Committee may deem advisable, to the
extent permitted by applicable law.

 

All
decisions, determinations and interpretations of the Committee shall be final
and binding upon all persons having an interest in the Plan or any award
granted under the Plan.

 

(b)                                 Authority
of Officers.  Any officer of a
Participating Company shall have the authority to act on behalf of the Company
with respect to any matter, right, obligation, 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,
or election.

 

 

3.                                       Eligibility.  Key employees of the Participating Company
Group are eligible to participate in the Plan. 
The Committee shall, in the Committee’s sole discretion, determine which
individuals shall be granted awards under the Plan.

 

4.                                       Shares
Subject to Plan.  Shares issued
pursuant to the Plan shall be authorized but unissued shares of the common
stock of the Company (the “Stock”).  Subject to adjustment as provided in Section 5,
the maximum number of shares of Stock that may be issued under the Plan is
16,000,000 (reflecting Stock splits on October 26, 1999, October 24,
2000 and May 23, 2005).  In the
event that any award granted under the Plan denominated in shares for any
reason expires or is canceled, terminated or paid in cash, or shares of Stock
subject to forfeiture are forfeited to the Company, the shares allocable to
such award or such forfeited shares shall again be available for issuance under
the Plan.  Notwithstanding the foregoing,
any such shares shall be made subject to a new award only if the grant of such
new award and the issuance of such shares pursuant to such new award would not
cause the Plan or any award granted under the Plan to contravene Rule 16b-3.

 

5.                                       Adjustments
for Changes in Capital Structure. 
Appropriate adjustments shall be made in the number and class of shares
of Stock subject to the Plan, in the maximum number of shares set forth in Section 7(f),
and to any awards outstanding under the Plan, other than Performance Units (as
defined below), in the event of a stock dividend, stock split, reverse stock
split, recapitalization, combination, reclassification or like change in the
capital structure of the Company.  In the
event a majority of the shares which are of the same class as the shares that
are subject to outstanding awards under the Plan are exchanged for, converted
into, or otherwise become shares of another corporation (the “New Shares”), the Company may unilaterally amend
outstanding awards to provide that such awards may be settled in New
Shares.  In the event of any such
amendment, the number of shares shall be adjusted in a fair and equitable
manner.  Any and all new, substituted or
additional shares or Performance Shares (as defined below) received by a
Participant pursuant to this Section 5 will be subject to the applicable
restrictions set forth in the agreement evidencing an award as if such shares
or Performance Shares were part of the original award.

 

6.                                       Term
of Plan.  The Plan shall continue in
effect until terminated by the Board or Committee or until 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 such awards have lapsed.

 

7.                                       Performance
Awards.

 

(a)                                  Types
of Performance Awards.  The Committee
may from time to time grant awards under this Section 7 (“Performance Awards”) which are Performance-Based Restricted
Stock, Performance Shares, or Performance Units.  Performance Awards shall be evidenced by written
agreements, in such form as the Committee shall from time to time establish
(each an “Award Agreement”), specifying the
number of shares of Stock or the dollar amount covered thereby, the performance
goals established by the Committee, the period in which such goals are to be
met and the other terms, conditions and restrictions of the award, which Award
Agreements may incorporate all or any of the terms of the Plan by
reference.  The

 

 

Committee shall not require a Participant to make any monetary payment
(other than applicable tax withholding) as a condition of receiving a
Performance Award.

 

(i)                                     “Performance-Based Restricted Stock” shall mean shares of
Stock awarded to a Participant which, in accordance with rules established
by the Committee prior to the grant of such award, are subject to forfeiture in
full or in part or with respect to which additional shares of Stock may be
granted on the basis of the degree of attainment of Performance Goals (as
defined below) within a Performance Period (as defined below).  Shares of Performance-Based Restricted Stock
shall be evidenced in such manner as the Committee may deem appropriate,
including by book-entry registration or issuance of one or more stock
certificates.  Any certificate issued in
respect of shares of Performance-Based Restricted Stock shall be registered in
the name of the Participant and shall bear an appropriate legend referring to
the terms, conditions, and restrictions applicable to such award.  The Committee may require that such certificates
be held in the custody of the Company or other escrow agent until the
restrictions thereon lapse.

 

(ii)                                  “Performance Shares” shall mean bookkeeping units,
denominated in shares of Stock, awarded to a Participant which, in accordance
with rules established by the Committee prior to the grant of such award,
are subject to forfeiture in full or in part or with respect to which
additional shares of Stock may be granted on the basis of the degree of
attainment of Performance Goals (as defined below) within a Performance Period
(as defined below).

 

(iii)                               “Performance Units” shall mean bookkeeping units,
denominated in dollar amounts, awarded to a Participant which, in accordance
with rules established by the Committee prior to the grant of such award,
are subject to forfeiture in full or in part or with respect to which
additional such units may be granted on the basis of the degree of attainment
of Performance Goals (as defined below) within a Performance Period (as defined
below).

 

(b)                                 Performance
Goals and Performance Period.  Unless
otherwise permitted in compliance with the requirements of Section 162(m)
of the Code with respect to “performance-based compensation,” the Committee
shall establish with respect to one or more of the Performance Factors set forth
below the target levels of attainment of such Performance Factors
(collectively, “Performance Goals”) which, when
measured at the end of the Performance Period (as defined below), in accordance
with the Performance Award Formula (as defined below), shall determine the
number of shares of Stock, if any, which shall become nonforfeitable and/or
issuable with respect to such Performance Award or the dollar amount, if any,
payable with respect to such Performance Award, and such Committee actions
shall occur no later than the earlier of (i) the date ninety (90) days
after the commencement of the applicable Performance Period or (ii) 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 the Performance Award Formula (as defined below) shall
not be changed during the Performance Period. 
The Award Agreement shall set forth the applicable Performance Goals, Performance
Award Formula, Performance Period, and the number of shares of Stock or dollar
amount, as the case may be, which may be earned by the Participant upon the
attainment of the Performance Goals at the end of the Performance Period.

 

 

(i)                                     “Performance Factors” 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 meanings applied pursuant
to generally accepted accounting principles, or as used generally in the
Company’s industry.  Performance Factors
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
Factors 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 Factors may be one or more of the following, as determined
by the Committee:

 

(A)                              growth
in revenue;

 

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

 

(C)                                operating
margin;

 

(D)                               gross
margin;

 

(E)                                 operating
income;

 

(F)                                 pre-tax
profit;

 

(G)                                earnings
before interest, taxes and depreciation;

 

(H)                               net
income;

 

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

 

(J)                                   earnings
per share;

 

(K)                               return
on stockholder equity;

 

(L)                                 return
on net assets;

 

(M)                            expenses;

 

(N)                               return
on capital;

 

(O)                               economic
value added;

 

(P)                                 market
share; and

 

 

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

 

(ii)                                  “Performance Period” shall mean a period established by the
Committee, at the end of which the degree of attainment of the Performance
Goals is measured.  Performance Periods
for different Performance Awards, including Performance Awards made to the same
Participant, need not be consecutive.

 

(iii)                               “Performance Award Formula” shall mean, for any Performance
Award, a formula or table established by the Committee 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 at the end of the
applicable Performance Period.

 

(c)                                  Settlement
of Performance Awards.

 

(i)                                     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 Performance Award earned by the Participant and to be paid upon
its settlement in accordance with the applicable Performance Award Formula.

 

(ii)                                  Discretionary
Adjustment of Performance 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.

 

(iii)                               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.

 

(iv)                              Notice
to Participants.  As soon as
practicable following the Committee’s determination and certification in
accordance with Section 7(c)(i), the Company shall notify each Participant
of the determination of the Committee.

 

 

(v)                                 Payment
in Settlement of Performance Awards. 
As soon as practicable following the Committee’s determination and
certification in accordance with Section 7(c)(i), 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, payment shall be made in a lump sum.  An Award Agreement may provide for deferred
payment in a lump sum or in installments.

 

(vi)                              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 further vesting conditions as provided in Section 8.  Any shares subject to further vesting
conditions shall be evidenced by an appropriate agreement setting forth the
terms of a Performance Award and shall be subject to the provisions of Section 8.

 

(d)                                 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.

 

(e)                                  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.

 

(f)                                    Maximum
Performance Award.  Subject to
adjustment as provided in Section 5, no Participant may be granted a
Performance Award in the form of Performance-Based Restricted Stock or
Performance Shares which could result in such Participant receiving more than
1,600,000 shares (reflecting Stock splits on October 26, 1999, October 24,
2000 and May 23, 2005) of Stock free of the restrictions imposed by this Section 7
with respect to any Performance Period or a Performance Award in the form of
Performance Units which could result in such Participant receiving more than
$10,000,000 with respect to any Performance Period.  No Participant may be granted more than one (1) Performance
Award for the same Performance Period.

 

8.                                       Restricted
Stock.  The Committee may from time
to time grant shares of Stock under this Section 8 (“Restricted
Stock”).  Restricted Stock
awards shall be evidenced by written agreements, in such form as the Committee
shall from time to time establish, specifying

 

 

the number of shares of Stock covered thereby and the terms, conditions
and restrictions of the award, and which agreements may incorporate all or any
of the terms of the Plan by reference. 
The number of shares of Restricted Stock which a Participant may receive
under the Plan shall be determined by the Committee in its sole discretion.  Shares of Restricted Stock shall be evidenced
in such manner as the Committee may deem appropriate, including by book-entry
registration or issuance of one or more stock certificates.  Any certificate issued in respect of shares
of Restricted Stock shall be registered in the name of the Participant and
shall bear an appropriate legend referring to the terms, conditions, and
restrictions applicable to such award. 
The Committee may require that such certificates be held in the custody
of the Company or other escrow agent until the restrictions thereon lapse.  The Committee shall not require a Participant
to make any monetary payment (other than applicable tax withholding) as a
condition of receiving Restricted Stock.

 

9.                                       Voting
Rights.  A Participant issued shares
of Stock pursuant to an award of Performance-Based Restricted Stock or
Restricted Stock shall be entitled to vote such shares.  A Participant awarded Performance Shares
shall not be entitled to vote any shares of Stock represented by such Performance
Shares until the date of issuance of shares of Stock upon settlement of such
award.

 

10.                                 Dividends
and Other Distributions.  Except as
provided in this Section 10 or in Section 5, no Participant shall be
entitled to dividends or other distributions (collectively, “Dividends”) with respect to shares of Stock subject to an
award under the Plan for which the record date is prior to the later of the
date such shares are issued to the Participant or the date on which such shares
become nonforfeitable under the terms of the agreement evidencing such award.

 

(a)                                  Performance-Based
Restricted Stock and Restricted Stock. 
With respect to shares of Stock issued pursuant to the award of
Performance-Based Restricted Stock or Restricted Stock, the Committee may, in
its sole discretion, provide either for the current payment of Dividends or the
accumulation and payment of Dividends to the extent that such shares become
nonforfeitable.

 

(b)                                 Performance
Shares.  With respect to Performance
Shares, 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 the accumulation and payment of dividend equivalents to
the extent that the Performance shares become nonforfeitable.

 

(c)                                  Performance
Units.  Dividend equivalents shall
not be paid with respect to Performance Units.

 

11.                                 Change
of Control.

 

(a)                                  Definition.  A “Change of Control”
shall be deemed to have occurred in the event 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 stock of the Company where the stockholders of the
Company before such sale or exchange do not retain, directly or indirectly, at
least a majority of the beneficial interest in the voting stock of the Company
after such sale or exchange;

 

(ii)                                  a
merger or consolidation in which the Company is not the surviving corporation;

 

(iii)                               a
merger or consolidation in which the Company is the surviving corporation where
the stockholders of the Company before such merger or consolidation do not
retain, directly or indirectly, at least a majority of the beneficial interest
in the voting stock of the Company after such merger or consolidation;

 

(iv)                              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 (1) or more
subsidiary corporations of the Company); or

 

(v)                                 A
liquidation or dissolution of the Company.

 

(b)                                 Effect
on Performance Awards. 
Notwithstanding any other provision of the Plan to the contrary, each
Participant granted a Performance Award for a Performance Period that will not
be completed as of the date of a Change of Control shall be deemed to have
earned and shall receive immediately prior to the Change of Control, free of
the restrictions imposed by Section 7, award consideration as provided in Section 7(c) equal
to the product of (i) the target amount that may be earned under the
Performance Award in accordance with the terms of the Award Agreement and (ii) a
fraction, the numerator of which is the number of full and partial months that
have elapsed since the beginning of such Performance Period to the date on
which the Change of Control occurs, and the denominator of which is the total
number of months in such Performance Period.

 

(c)                                  Effect
on Restricted Stock.  Notwithstanding
any other provision of the Plan to the contrary, all forfeiture conditions and
restrictions imposed under outstanding agreements evidencing Restricted Stock
shall automatically lapse immediately prior to a Change of Control.

 

12.                                 Tax
Withholding.  The Company shall have
the right to deduct from the payment of any award hereunder any federal, state,
local or foreign taxes required by law to be withheld with respect to such
payment.  Alternatively, in its sole
discretion, the Company shall have the right to require the Participant,
through payroll withholding or otherwise, to make adequate provision for any
such tax withholding obligations of the Company arising in connection with such
award.  The Company shall have no
obligation to deliver cash and/or shares of Stock in payment of an award unless
the Company’s tax withholding obligations have been satisfied.

 

13.                                 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.

 

 

14.                                 Nontransferability
of Awards.  Prior to the payment of,
and lapse of all restrictions with respect to, an award under the Plan, no
award or any rights or interests therein may be assigned or transferred in any
manner except by will or by the laws of descent and distribution.

 

15.                                 Termination
or Amendment of Plan and Awards.  The
Committee or the Board may terminate or amend the Plan or any award under the
Plan at any time; provided, however, that no such termination or amendment may
adversely affect any outstanding award without the consent of the Participant,
unless such termination or amendment is necessary to comply with any applicable
law or government regulation.  An award
shall be considered as outstanding as of the effective date of the grant of
such award as determined by the Committee. 
Notwithstanding the foregoing, the approval of the Company’s
stockholders shall be sought for any amendment to the Plan or an award for
which the Committee deems stockholder approval necessary in order to comply
with Rule 16b-3.

 

16.                                 Continuation
of Initial Plan as to Outstanding Awards. 
Notwithstanding any other provision of the Plan to the contrary, the
terms of the Initial Plan shall remain in effect and apply to awards granted
pursuant to the Initial Plan.

 

IN
WITNESS WHEREOF, the undersigned Secretary of the Company certifies that the
foregoing Adobe Systems Incorporated Amended 1994 Performance and Restricted
Stock Plan was duly adopted by the Board of Directors of the Company on the 20th
day of September 2005.

 

 

	
   

  	
  /s/ Karen Cottle

  	
   

  
	
   

  	
   

  
	
   

  	
  Karen Cottle,
  Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]