Document:

Exhibit 10.4

 

ADOBE SYSTEMS INCORPORATED

2003 Equity Incentive Plan

 

2006 Performance Share Program

Performance Share Maximum Award Agreement

 

Pursuant to the Maximum Award
Grant Notice (“Grant Notice”) and this
Performance Share Maximum Award Agreement (“Award Agreement”),
Adobe Systems Incorporated (the “Company”)
has awarded you, pursuant to its 2006 Performance Share Program (the “Program”) under its 2003 Equity
Incentive Plan (the “Plan”), the Maximum Award as
indicated in the Grant Notice.  Unless
otherwise defined herein, capitalized terms shall have the meanings set forth
in the Plan or the Program, as applicable.

 

The details of your Maximum
Award are as follows.

 

1.             Entitlement to Shares.  Subject to the limitations contained herein
and to the provisions of the Program and the Plan, you shall be entitled to
receive an Actual Award equal to all or a portion (including none) of the
Maximum Award provided that (i) a specified level of applicable
Performance Goals is met during the Performance Period and (ii) you continue to render Service to the Company or
an Affiliate in the position in effect on the date when you became a Designated
Participant (or a higher position) during the entire Performance Period,
and in accordance with (iii) the degree of achievement of applicable Other
Performance Goals.  If the Committee does
reduce the Actual Award on account of the degree of achievement of applicable
Other Performance Goals, you will be awarded a portion (or none) of the shares
of Stock subject to the Maximum Award; provided,
however, that (i) if a specified level of Performance Goals is not
achieved during the Performance Period, you will not receive any shares of
Stock, and (ii) the maximum number of shares of Stock that you may receive as
an Actual Award will in no event exceed the Maximum Award.  The applicable target and maximum award
levels for the applicable Performance Period are set forth in Exhibit A to the Program.

 

2.             Dividends. 
Prior to your receipt of any
shares of Stock as an Award, you shall not receive any payment or other
adjustment in the number of shares subject to your Maximum Award for dividends
or other distributions that may be made in respect of the shares of Stock to
which your Maximum Award relates.  Notwithstanding the foregoing, with
respect to any election you may make for the deferred receipt of shares of
Stock as an Actual Award, any dividends or other distributions that may be made
in respect of such shares of Stock after the end of the Performance Period will
be paid in the same form issued to other stockholders and will be subject to
the terms of your deferral election.

 

3.             Delivery of Shares.  Provided
that you become entitled to an Actual Award in accordance with Section 1 of
this Award Agreement, certificates for the shares (the “Certificates”) subject to
your Actual Award shall be registered in your name (or your heirs in the
case of death) and subject to Section 13 of
this Award Agreement, the Certificates representing such shares of Stock will
be delivered to you (or your heirs in the case of death) within thirty
(30) days following the completion of an independent audit and certification,
as described in Section 4(a) of the Program.  Notwithstanding the foregoing, if you elect
to defer

 

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delivery
of the shares of Stock as provided in Section 4 of this Award Agreement, the
shares of Stock will be delivered to you on the date or dates that you elect on
your Deferral Election Form.  The
form of delivery (e.g., a stock certificate or electronic entry evidencing such shares) shall be
determined by the Company.

 

4.             Deferral Election.  If permitted by the Company to do so, you may
elect to defer issuance of the shares of Stock that would otherwise be issued
pursuant to your Award.  If such deferral
election is made, it shall be made in accordance with the following
requirements:

 

(a)           No
deferral period shall exceed the maximum period permitted by the Company;

 

(b)           You
must complete a Deferral Election Form (in the form provided by the Company) at
such time as the Company shall require, which in no event shall be later than
six (6) months prior to the end of the applicable Performance Period; and

 

(c)           The
Board (or appropriate committee thereof) will, in its sole discretion,
establish the rules and procedures for such deferrals.

 

5.             Effect of Leaves of Absence.  Unless otherwise required by law, in the case
of a Participant who has taken in excess of thirty (30) days of leaves of
absence during a Performance Period, the shares of Stock otherwise deliverable
as an Actual Award 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.

 

6.             Number of Shares.  The
number of shares of Stock subject to your Maximum Award may be adjusted from
time to time for capitalization adjustments, as provided in Section 4.2 of the
Plan.

 

7.             Effect of Change in Control.  Upon a change in control (as
defined in the Company’s Executive Severance Plan in Event of Change in
Control), the Program shall terminate and an Actual Award will be deemed earned
by each Participant expressed as the product of the Actual Award at target
level for the entire Performance Period and the number of full or partial months
of the Performance Period that has elapsed as of the change in control, divided
by 24.  Shares of Stock in respect of
such Actual Award will be delivered to the Participant as soon as
administratively practical following the change in control; provided, however, that the Company may delay delivery for
six (6) months if required to avoid the additional tax under Section 409A of
the Code.  You hereby acknowledge that
Awards are considered “performance share units” as such term is used in the
Company’s Executive Severance Plan in Event of Change in Control and any
individual change in control agreements.

 

8.             Securities Law
Compliance.  The grant of your Maximum Award and
the issuance of any shares of Stock as an Actual Award shall be subject to
compliance with all applicable requirements of federal, state or foreign law
with respect to such securities.  You may not be issued any shares of Stock as an
Actual Award if the issuance of shares of Stock would constitute a
violation of any applicable federal, state or foreign securities laws or other
law or regulations or the requirements of any stock exchange or market system
upon which the Stock may then be listed. 
In addition, you may not be issued
any shares of Stock as an Actual Award

 

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unless (i) a registration
statement under the Securities Act shall at the time of issuance be in effect
with respect to the shares or (ii) in the opinion of legal counsel to the
Company, the shares may be issued in accordance with the terms of an applicable
exemption from the registration requirements of the Securities Act.  YOU ARE CAUTIONED THAT THE SHARES MAY NOT BE
ISSUED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED.  The inability of the Company to obtain from
any regulatory body having jurisdiction the authority, if any, deemed by the
Company’s legal counsel to be necessary to the lawful issuance and sale of any
shares as an Actual Award shall relieve the Company of any liability in respect
of the failure to issue or sell such shares as to which such requisite
authority shall not have been obtained. 
As a condition to the issuance of any shares as an Actual Award, the
Company may require you to satisfy any qualifications that may be necessary or
appropriate, to evidence compliance with any applicable law or regulation and
to make any representation or warranty with respect thereto as may be requested
by the Company

 

9.             Restrictive Legends.  The shares of Stock issued as an Actual Award
shall be endorsed with appropriate legends, if any, determined by the Company.

 

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

 

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

 

12.          Unsecured Obligation.  Your
Maximum Award is unfunded and you shall be considered an unsecured creditor of
the Company with respect to the Company’s obligation, if any, to issue shares
of Stock pursuant to this Maximum Award Agreement.

 

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

 

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adequate arrangements
satisfactory to the Participating Company
Group to satisfy all withholding obligations of the Participating Company Group.  In this regard, at the time you receive a distribution of shares of Stock pursuant to an
Actual Award, or at any time thereafter as requested by the Participating
Company Group, you hereby authorize withholding of all applicable
Tax-Related Items from shares of Stock otherwise deliverable to you as an
Actual Award.  Finally, you shall pay to
the Participating Company Group any
amount of the Tax-Related Items that the Participating
Company Group may be required to withhold as a result of your
participation in the Plan that cannot be satisfied by the means previously
described.  The Participating Company Group shall have no obligation to deliver
shares of Stock until you have satisfied the obligations in connection with the
Tax-Related Items as described in this section.

 

14.          Nature
of Award.  In accepting your
Maximum Award, you acknowledge that:

 

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

 

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

 

(c)           all
decisions with respect to future Maximum Award grants, if any, will be at the
sole discretion of the Committee;

 

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

 

(e)           you
are voluntarily participating in the Plan;

 

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

 

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

 

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

 

(i)            no
claim or entitlement to compensation or damages arises from termination of your
Maximum Award or diminution in value of your Maximum Award or shares issued
pursuant to an Actual Award resulting from termination of your Service with the
Participating Company Group (for any reason whether or not in breach of
applicable labor laws),

 

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and you irrevocably
release the Participating Company Group from any such claim that may
arise.  If, notwithstanding the
foregoing, any such claim is found by a court of competent jurisdiction to have
arisen then, by executing the Grant Notice, you shall be deemed irrevocably to
have waived your entitlement to pursue such a claim.

 

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

 

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

 

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

 

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

 

You understand that the
Company and the Participating Company Group hold certain personal information
about you, including, but not limited to, your name, home address and telephone
number, date of birth, social insurance number or other identification number,
salary, nationality, job title, any shares of Stock or directorships held in
the Company, details of

 

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

 

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

 

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

 

19.          Miscellaneous.

 

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

 

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

 

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

 

20.          Governing Plan Document.  Your
Maximum Award is subject to all the provisions of the Plan and Program, the
provisions of which are hereby made a part of your

 

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Maximum
Award, and is further subject to all interpretations, amendments, rules and
regulations which may from time to time be promulgated and adopted pursuant to
the Plan or Program.  In the event of any
conflict between the provisions of your Maximum Award and those of the Plan or
Program, the provisions of the Plan or Program shall control.  In the event of any conflict between the
provisions of the Plan or Program, the provisions of the Plan shall control.

 

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

 

7Exhibit 10.5

 

ADOBE SYSTEMS INCORPORATED

Amended
1994 Performance and Restricted Stock Plan

 

2006
Performance Share Program

Maximum
Award Grant Notice

 

Adobe Systems
Incorporated (the “Company”), pursuant to its 2006
Performance Share Program (the “Program”)
under its Amended 1994 Performance and Restricted Stock Plan (the “Plan”), hereby awards to Participant
the Maximum Award set forth below.  This Maximum
Award is subject to all of the terms and conditions as set forth herein and in
the Performance Share Maximum Award Agreement, the Program and the Plan, all of
which are attached hereto and incorporated herein in their entirety.  Unless otherwise defined herein, capitalized
terms shall have the meanings set forth in the Plan or the Program, as
applicable.

 

	
  Participant:

  	
   

  	
   

  
	
  Date of Grant:

  	
   

  	
   

  
	
  Number of Shares
  Subject to Maximum Award:

  	
  [                            ]
  shares of Stock

  
	
  Performance Period:

  	
   

  	
   

  

 

Delivery of Shares:   Subject to the limitations contained herein
and to the provisions of the Plan and the Program, Participant shall be
entitled to receive an Actual Award equal to all or a portion (including none)
of the Maximum Award on the date specified in the Performance Share Maximum
Award Agreement, provided that (i) a specified level of applicable Performance
Goals is met during the Performance Period and (ii) Participant continues to
render service to the Company or any other Participating Company as specified
in the Program, and in accordance with (iii) the degree of achievement of
applicable Other Performance Goals.

 

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

 

	
  Other Agreements:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adobe Systems Incorporated:

  	
   

  	
  Participant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
										

 

	
  Attachments:

  	
   

  	
  Performance Share
  Maximum Award Agreement, 2006 Performance Share Program and Amended 1994
  Performance and Restricted Stock Plan

  

 

 

Attachment
I

 

Performance Share Maximum Award Agreement

 

 

Attachment
II

 

2006 Performance Share Program

 

 

Attachment
III

 

Amended 1994 Performance and Restricted Stock Plan

 

1

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