Document:

ex10_3.htm

    Exhibit
10.3

    ADOBE
SYSTEMS INCORPORATED

    1994
PERFORMANCE AND RESTRICTED STOCK PLAN

    

    RESTRICTED
STOCK AWARD GRANT AGREEMENT

    

    Adobe
Systems Incorporated (the “Company”) has granted _______________________ (the
“Participant”), as of ___________ ___, 2008 (the “Grant Date”), an award of
Restricted Stock (the “Award”) as described in this Restricted Stock Award Grant
Agreement (the “Agreement”) pursuant to the Company’s 1994 Performance and
Restricted Stock Plan (the “Plan”).  Capitalized terms not defined in
this Agreement shall have the meaning set forth in the Plan and, if applicable,
the Superseding Agreement.

    

    IT IS
AGREED between the parties as follows:

    

    
      	
               
      

            	
              1.

            	
              Issuance of
      Shares.  Effective as of the Grant Date, the Company
      shall issue the Participant _______________ shares of the Company’s common
      stock (the “Stock”) in consideration for the Participant’s service with
      the Company.  In the event additional consideration is required
      by law so that the Stock acquired under this Agreement is deemed fully
      paid and nonassessable, the Board shall determine the amount and character
      of such additional consideration to be paid and the Participant shall
      deliver it promptly to the Company.  The Company will direct the
      transfer agent for the Company to deliver to Escrow Agent (as defined in
      Section 6 below) the certificate or certificates evidencing the shares of
      Stock being acquired by the Participant.  Any such shares may be
      held in book entry form directly registered with the transfer agent or in
      such other form as the Company may
determine.

            

    

    

    
      	
               
      

            	
              2.

            	
              Vesting and
      Reacquisition Right.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Vesting.  The
      Award shall be subject to vesting in accordance with the Vesting Schedule
      set forth on Exhibit A
      hereto.  Shares of Stock that have vested in accordance with the
      Vesting Schedule are “Vested Shares.”  Shares of Stock that have
      not vested are “Unvested Shares.”  Vesting is subject to the
      Participant’s continued Service.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Reacquisition
      Right.  The Company shall simultaneously with the
      termination of the Participant’s Service automatically reacquire for no
      consideration all of the Unvested Shares (the “Reacquisition Right”),
      unless the Company agrees to waive its Reacquisition Right as to some or
      all of the Unvested Shares.  Any such waiver shall be exercised
      by the Company by written notice to the Participant (with a copy to Escrow
      Agent) within ninety (90) days after the termination of Service, and
      Escrow Agent may then release to the Participant the number of Unvested
      Shares not being reacquired by the Company.  If the Company does
      not waive its Reacquisition Right as to all of the Unvested Shares, then
      upon such termination of Service, Escrow Agent shall transfer to the
      Company the number of Unvested Shares the Company is
      reacquiring.  The Reacquisition Right shall expire when all of
      the shares have become Vested Shares.  Notwithstanding the
      foregoing, if necessary to avoid a charge to earnings for financial
      accounting purposes, the Company shall not exercise its Reacquisition
      Right until at least six (6) months (or such other period required for
      financial accounting purposes) have elapsed following the Participant’s
      acquisition of the shares of Stock issued pursuant to this Award, unless
      otherwise determined by the Board.  In the event of a Change of
      Control or other change in the Company’s capital structure (as provided in
      Section 5 of the Plan), the Reacquisition Right may be assigned by the
      Company to the successor of the Company (or such successor’s parent
      corporation), if any, in connection with such transaction.  To
      the extent the Reacquisition Right remains in effect following such
      transaction, it shall apply to the new capital stock or other property
      received in exchange for the Stock under this Award in consummation of
      such transaction.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              3.

            	
              Definitions.  As
      used in this Agreement, the following terms shall have the meanings
      indicated unless the context requires a different
  meaning.

            

    

    

    (a)           Board.  The
“Board” shall mean the Board of Directors of the Company.

    

    (b)           Code.  “Code”
shall mean the Internal Revenue Code of 1986, as amended.

    

    (c)           Director.  “Director”
shall mean a member of the Board of Directors of the Company.

    

    
      	
               
      

            	
              (d)

            	
              Participating
      Company.  “Participating Company” shall mean (i) the
      Company, and (ii) any present or future parent and/or subsidiary
      corporation of the Company while such corporation is a parent or
      subsidiary of the Company.  For purposes of this Agreement, a
      parent corporation and a subsidiary corporation shall be as defined in
      Sections 424(e) and 424(f) of the
Code.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Participating Company
      Group.  “Participating Company Group” shall mean at any
      point in time all corporations collectively which are then a Participating
      Company.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Service.  “Service”
      means the Participant’s employment or service with the Participating
      Company Group as an employee or a consultant, whichever such capacity the
      Participant held on the Grant Date.  Unless otherwise determined
      by the Board, the Participant’s Service shall be deemed to have terminated
      if the Participant ceases to render service to the Participating Company
      Group in such initial capacity.  However, the 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 in such initial capacity, provided that there is no interruption
      or termination of the Participant’s Service.  Furthermore, the
      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 this
      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 Board, in
      its discretion, shall determine whether the Participant’s Service has
      terminated and the effective date of such
  termination.

            

    

    

    
      	
               
      

            	
              (g)

            	
              Superseding
      Agreement.  “Superseding Agreement” shall mean the Adobe
      Systems Incorporated Executive Severance Plan in the Event of a Change of
      Control and/or the individual written retention agreement in effect on the
      Grant Date between the Company and the Participant, to the extent
      applicable to the Participant.

            

    

    

    
      	
               
      

            	
              4.

            	
              Administration.  All
      questions of interpretation concerning this Agreement shall be determined
      by the Board and/or by a duly appointed committee of the Board having such
      powers as shall be specified by the Board.  Any reference herein
      to the Board shall also mean the committee if such committee has been
      appointed.  All determinations by the Board shall be final and
      binding upon all persons having an interest in this
    Agreement.

            

    

    

    
      	
               
      

            	
              5.

            	
              Rights as a
      Stockholder.  The Participant shall have no rights as a
      stockholder with respect to Unvested Stock. No adjustment shall be made
      for dividends or distributions or other rights for which the record date
      is prior to the date such Stock becomes Vested
  Stock.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              6.

            	
              Escrow of Unvested
      Shares.
      As security for the Participant’s faithful performance of the terms
      of this Agreement (including Section 2) and to insure the availability for
      delivery of the Participant’s Stock upon execution of the Reacquisition
      Right, the Participant agrees to the following “Joint Escrow” and “Joint
      Escrow Instructions,” and the Participant and the Company hereby authorize
      and direct the Corporate Secretary of the Company or the Corporate
      Secretary’s designee (“Escrow Agent”) to hold the documents delivered to
      Escrow Agent pursuant to the terms of this Agreement, in accordance with
      the following Joint Escrow
Instructions:

            

    

    

    
      	
               
      

            	
              (a)

            	
              As
      provided in Section 2 above, in the event of the termination of the
      Participant’s Service, the Company shall pursuant to the Reacquisition
      Right, automatically reacquire for no consideration all Unvested Shares,
      as of the date of such termination, unless the Company elects to waive
      such right as to some or all of the Unvested Shares.  If the
      Company elects to waive the Reacquisition Right, the Company will give the
      Participant and Escrow Agent a written notice specifying the number of
      Unvested Shares not to be reacquired. The Participant and the Company
      hereby irrevocably authorize and direct Escrow Agent to close the
      transaction contemplated by such notice as soon as practicable following
      the date of termination of Service in accordance with the terms of this
      Agreement and the notice of waiver, if
any.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Vested
      Shares shall be delivered to the Participant upon the Participant’s
      request given in the manner provided for in this Agreement for providing
      notice.

            

    

     

    
      	
               
      

            	
              (c)

            	
              At
      any closing involving the transfer or delivery of some or all of the
      property subject to the Agreement, Escrow Agent is directed (i) to
      date any stock assignments necessary for the transfer in question,
      (ii) to fill in the number of shares being transferred, and
      (iii) to deliver the same, together with the certificate, if any,
      evidencing the shares of Stock to be transferred, to the Participant or
      the Company, as applicable.

            

    

    

    
      	
               
      

            	
              (d)

            	
              The
      Participant irrevocably authorizes the Company to deposit with Escrow
      Agent the certificates, if any, evidencing shares of Stock to be held by
      Escrow Agent hereunder and any additions and substitutions to such shares
      as specified in this Agreement.  The Participant hereby
      irrevocably constitutes and appoints Escrow Agent as the Participant’s
      attorney-in-fact and agent for the term of this escrow to execute with
      respect to such securities and other property all documents of assignment
      and/or transfer and all stock certificates necessary or appropriate to
      make all securities negotiable and complete any transaction contemplated
      herein.

            

    

    

    
      	
               
      

            	
              (e)

            	
              This
      escrow shall terminate upon the expiration or application in full of the
      Reacquisition Right and the completion of the tasks contemplated by these
      Joint Escrow Instructions.

            

    

     

    
      	
               
      

            	
              (f)

            	
              If
      at the time of termination of this escrow, Escrow Agent should have in its
      possession any documents, securities, or other property belonging to the
      Participant, Escrow Agent shall deliver all of same to the Participant and
      shall be discharged of all further obligations
  hereunder.

            

    

     

    
      	
               
      

            	
              (g)

            	
              Except
      as otherwise provided in these Joint Escrow Instructions, Escrow Agent’s
      duties hereunder may be altered, amended, modified, or revoked only by a
      writing signed by all of the parties
hereto.

            

    

     

    
      	
               
      

            	
              (h)

            	
              Escrow
      Agent shall be obligated only for the performance of such duties as are
      specifically set forth herein and may rely and shall be protected in
      relying or refraining from acting on any instrument reasonably believed by
      Escrow Agent to be genuine and to have been signed or presented by the
      proper party or parties or their assignees.  Escrow Agent shall
      not be personally liable for any act Escrow Agent may do or omit to
      do

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    hereunder
as Escrow Agent or as attorney-in-fact for the Participant while acting in good
faith and any act done or omitted by Escrow Agent pursuant to the advice of
Escrow Agent’s own attorneys shall be conclusive evidence of such good
faith.

     

    
      	
               
      

            	
              (i)

            	
              Escrow
      Agent is hereby expressly authorized to disregard any and all warnings
      given by any of the parties hereto or by any other person or corporation,
      excepting only orders, judgments, decrees or process of courts of law, and
      is hereby expressly authorized to comply with and obey orders, judgments,
      or decrees of any court.  In case Escrow Agent obeys or complies
      with any such order, judgment, or decree of any court, Escrow Agent shall
      not be liable to any of the parties hereto or to any other person, firm,
      or corporation by reason of such compliance, notwithstanding any such
      order, judgment, or decree being subsequently reversed, modified,
      annulled, set aside, vacated, or found to have been entered without
      jurisdiction.

            

    

     

    
      	
               
      

            	
              (j)

            	
              Escrow
      Agent shall not be liable in any respect on account of the identity,
      authority, or rights of the parties executing or delivering or purporting
      to execute or deliver this Agreement or any documents or papers deposited
      or called for hereunder.

            

    

    

    
      	
               
      

            	
              (k)

            	
              Escrow
      Agent shall not be liable for the outlawing of any rights under any
      statute of limitations with respect to these Joint Escrow Instructions or
      any documents deposited with Escrow
Agent.

            

    

    

    
      	
               
      

            	
              (l)

            	
              Escrow
      Agent’s responsibilities as Escrow Agent hereunder shall terminate if
      Escrow Agent shall cease to be the Secretary of the Company (or the
      Secretary’s designee, if applicable) or if Escrow Agent shall resign by
      written notice to each party.  In the event of any such
      termination, the Company may appoint any officer or assistant officer of
      the Company or any other person as successor Escrow Agent and the
      Participant hereby confirm the appointment of such successor or successors
      as the Participant’s attorney-in-fact and agent to the full extent of such
      successor Escrow Agent’s
appointment.

            

    

     

    
      	
               
      

            	
              (m)

            	
              If
      Escrow Agent reasonably requires other or further instruments in
      connection with these Joint Escrow Instructions or obligations in respect
      hereto, the necessary parties hereto shall join in furnishing such
      instruments.

            

    

     

    
      	
               
      

            	
              (n)

            	
              It
      is understood and agreed that should any dispute arise with respect to the
      delivery and/or ownership or right of possession of the securities, Escrow
      Agent is authorized and directed to retain in its possession without
      liability to anyone all or any part of such securities until such dispute
      shall have been settled either by mutual written agreement of the parties
      concerned or by a final order, decree, or judgment of a court of competent
      jurisdiction after the time for appeal has expired and no appeal has been
      perfected, but Escrow Agent shall be under no duty whatsoever to institute
      or defend any such proceedings.

            

    

     

    
      	
               
      

            	
              (o)

            	
              By
      signing this Agreement below Escrow Agent becomes a party hereto only for
      the purpose of the Joint Escrow Instructions; Escrow Agent does not become
      a party to any other rights and obligations of this Agreement apart from
      those in this Section 6.

            

    

     

    
      	
               
      

            	
              (p)

            	
              Escrow
      Agent shall be entitled to employ such legal counsel and other experts as
      Escrow Agent may deem necessary to properly advise Escrow Agent in
      connection with Escrow Agent’s obligations hereunder.  Escrow
      Agent may rely upon the advice of such counsel, and may pay such counsel
      reasonable compensation therefor.  The Company shall be
      responsible for all fees generated by such legal counsel in connection
      with Escrow Agent’s obligations
hereunder.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (q)

            	
              These
      Joint Escrow Instructions shall be binding upon and inure to the benefit
      of the parties hereto and their respective successors and permitted
      assigns.  It is understood and agreed that references to “Escrow
      Agent” herein refer to the original Escrow Agent and to any and all
      successor Escrow Agents.  It is understood and agreed that the
      Company may at any time or from time to time assign its rights under the
      Agreement and these Joint Escrow Instructions in whole or in
      part.

            

    

    

    
      	
               
      

            	
              7.

            	
              Legends.  The
      Participating Company Group may at any time place legends referencing the
      Reacquisition Right set forth in Section 2 above and any applicable
      federal and/or state securities restrictions on all certificates
      representing shares of Stock subject to the provisions of this
      Agreement.  The Participant shall, at the request of the
      Participating Company Group, promptly present to the Participating Company
      Group any and all certificates representing shares of Stock acquired under
      this Agreement in the possession of the Participant in order to effectuate
      the provisions of this Section.  Unless otherwise specified by
      the Participating Company Group, legends placed on such certificates may
      include but shall not be limited to the
  following:

            

    

    

    “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS SET FORTH
IN AN AGREEMENT BETWEEN THIS CORPORATION AND THE REGISTERED HOLDER, OR HIS OR
HER PREDECESSOR IN INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE
OF THE CORPORATION.”

    

    
      	
               
      

            	
              8.

            	
              Transfers in Violation
      of Agreement. The Participant’s Award and any Unvested Shares are
      not transferable, except by will or by the laws of descent and
      distribution. The Company shall not be required (a) to transfer on its
      books any shares of the Stock which shall have been sold or transferred in
      violation of any of the provisions set forth in this Agreement, or (b) to
      treat as owner of such shares or to accord the right to vote as such owner
      or to pay dividends to any transferee to whom any such shares shall have
      been so transferred.

            

    

    

    9.           Tax
Matters.

    

    
      	
               
      

            	
              (a)

            	
              Tax
      Consequences.
      The Participant acknowledges and agrees that the Participant has reviewed
      with the Participant’s own tax advisors the federal, state, local and
      foreign tax consequences of the Award and the transactions contemplated by
      this Agreement, or has knowingly and voluntarily declined to do
      so.  The Participant shall rely solely on such advisors and not
      on any statements or representations of the Company or any of its
      agents.  The Participant understands that the Participant (and
      not the Company) shall be responsible for the Participant’s own tax
      liability that may arise as a result of the Award or the transactions
      contemplated by this Agreement.  The Participant acknowledges
      that the Participant shall be solely responsible for making any filings or
      elections, including any election under Section 83(b) of the Code, even if
      the Participant requests the Company or its representatives to make any
      filing on the Participant’s behalf.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Withholding
      Obligations.  Regardless of any action taken by the
      Company or the Participating Company Group with respect to any or all
      income, employment, social insurance, or payroll taxes, payment on account
      or other tax-related withholding (“Tax-Related Items”), the Participant
      acknowledges that the ultimate liability for all Tax-Related Items legally
      due by the Participant is and remains the Participant’s responsibility and
      that the Company and Participating Company Group (i) make no
      representations or undertakings regarding the treatment of any Tax-Related
      Items in connection with any aspect of this Agreement, the subsequent sale
      of the Stock, or the receipt of any dividends, and (ii) do not commit to
      structure the terms of the grant or any other aspect of this Agreement to
      reduce or eliminate the Participant’s liability for Tax-Related Items. At
      the time the Participant vests in the Stock or at any other time as
      reasonably requested by the Company or the Participating Company Group,
      the Participant shall pay or make adequate arrangements satisfactory to
      the Participating Company Group to satisfy
all

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    withholding
obligations of the Participating Company Group. In this regard, the Participant
hereby authorizes the withholding of that number of whole vested shares
otherwise deliverable to the Participant pursuant to this Agreement having a
fair market value not in excess of the amount of the Tax-Related Items
determined by the applicable minimum statutory rates. In no event may shares of
Stock be withheld with a value exceeding the minimum amount of tax required to
be withheld by law. Finally, the Participant shall pay to the Company or
Participating Company Group (as applicable) any amount of the Tax-Related Items
that the Company or the Participating Company Group may be required to withhold
as a result of the Participant’s participation in the Plan that cannot be
satisfied by the means previously described. The Participant expressly
acknowledges and agrees that the Company may withhold from any compensation paid
to the Participant by the Company in partial or full satisfaction of the
withholdings contemplated by this Section.

    

    10.           Acknowledgement. By
accepting this Agreement, the Participant acknowledges 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
      Board at any time, unless otherwise provided in the Plan and this
      Agreement;

            

    

    

    
      	
               
      

            	
              (b)

            	
              this
      grant is voluntary and occasional and does not create any contractual or
      other right to receive future grants of awards, or benefits in lieu of
      awards, even if awards have been granted repeatedly in the
      past;

            

    

    

    
      	
               
      

            	
              (c)

            	
              all
      decisions with respect to future awards under the Plan, if any, will be at
      the sole discretion of the Board;

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      Participant’s participation in the Plan shall not create a right to
      further employment with the Company or the Participating Company Group and
      shall not interfere with any ability of the Company or the Participating
      Company Group to terminate the Participant’s employment relationship at
      any time, with or without cause;

            

    

    

    (e)           the
Participant is voluntarily participating in the Plan;

    

    
      	
               
      

            	
              (f)

            	
              this
      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 the Participant is not an employee of the Company, this
      Agreement will not be interpreted to form an employment contract or
      relationship with the Company; and furthermore, this Agreement will not be
      interpreted to form an employment contract with the other members of the
      Participating Company Group;

            

    

    

    (h)           the
future value of the Stock is unknown and cannot be predicted with certainty;
and

    

    
      	
               
      

            	
              (i)

            	
              no
      claim or entitlement to compensation or damages arises from termination of
      this Award or diminution in value of the Stock issued resulting from
      termination of the Participant’s Service with the Company or the
      Participating Company Group (for any reason whether or not in breach of
      applicable labor laws), and the Participant irrevocably releases the
      Company and the Participating Company Group from any such claim that may
      arise. If, notwithstanding the foregoing, any such claim is found by a
      court of competent jurisdiction to have arisen then, by accepting this
      Agreement, the Participant shall be deemed irrevocably to have waived the
      Participant’s entitlement to pursue such a
  claim.

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              11.

            	
              Delivery of Documents
      and Notices.  Any document relating to participating in
      the Plan and/or notice required or permitted hereunder shall be given in
      writing and shall be deemed effectively given (except to the extent that
      this 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 the Participant 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 documents, which may
      include but do not necessarily include: the Plan prospectus, this
      Agreement and U.S. financial reports of the Company, may be delivered to
      the Participant electronically.  In addition, the Participant
      may deliver electronically any notices called for by this
      Agreement.  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 Board’s discretion.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Consent to Electronic
      Delivery.  The Participant acknowledges and consents to
      the electronic delivery of the Plan documents and notice pursuant to this
      Agreement.  The Participant acknowledges that he or she may
      receive from the Company a paper copy of any documents delivered
      electronically at no cost if the Participant contacts the Company by
      telephone, through a postal service or electronic mail at
      equity@adobe.com.  The Participant further acknowledges that the
      Participant will be provided with a paper copy of any documents delivered
      electronically if electronic delivery fails; similarly, the Participant
      understands that the Participant must provide the Company or any
      designated third party with a paper copy of any documents delivered
      electronically if electronic delivery fails.  Also, the
      Participant understands that the Participant’s consent may be revoked or
      changed, including any change in the electronic mail address to which
      documents are delivered (if Participant has 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.

            

    

    

    
      	
               
      

            	
              12.

            	
              Successors and
      Assigns.  This Agreement shall inure to the benefit of
      the successors and assigns of the Company and, subject to the restrictions
      on transfer herein set forth, be binding upon Participant, his or her
      heirs, executors, administrators, successors and
  assigns.

            

    

    

    
      	
               
      

            	
              13.

            	
              Securities Law
      Compliance. The grant and issuance of the Stock under this Award
      shall be subject to compliance with all applicable requirements of
      federal, state or foreign law with respect to such securities. The
      Participant may not be issued any shares of Stock if such issuance 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, the Participant may not be issued any shares of Stock 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 of Stock 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 of Stock pursuant to this
      Agreement, 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.

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              14.

            	
              Data Privacy
      Consent.  The Participant hereby explicitly and
      unambiguously consents to the collection, use and transfer, in electronic
      or other form, of the Participant’s 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 the
      Participant’s participation in the
Plan.

            

    

    

    The
Participant understands that the Company and the Participating Company Group
hold certain personal information about the Participant, including, but not
limited to, the Participant’s 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 any entitlement to shares of Stock awarded, canceled,
exercised, vested, unvested or outstanding in the Participant’s favor, for the
purpose of implementing, administering and managing the Plan
(“Data”).  The Participant understands that Data may be transferred to
any third parties assisting in the implementation, administration and management
of the Plan, that these recipients may be located in the Participant’s country
or elsewhere, and that the recipient’s country may have different data privacy
laws and protections than the Participant’s country.  The Participant
understands that he or she may request a list with the names and addresses of
any potential recipients of the Data by contacting the Participant’s local human
resources representative.  The Participant authorizes the recipients
to receive, possess, use, retain and transfer the Data, in electronic or other
form, for the purposes of implementing, administering and managing the
Participant’s participation in the Plan.  The Participant understands
that Data will be held only as long as is necessary to implement, administer and
manage the Participant’s participation in the Plan.  The Participant
understands that he or she 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 the Participant’s local human resources
representative.  The Participant understands, however, that refusing
or withdrawing the Participant’s consent may affect the Participant’s ability to
participate in the Plan.  For more information on the consequences of
the Participant’s refusal to consent or withdrawal of consent, the Participant
understands that he or she may contact the Participant’s local human resources
representative.

    

    
      	
               
      

            	
              15.

            	
              Integrated
      Agreement.  This Agreement, together with the Superseding
      Agreement, if any, and the Plan constitutes the entire understanding and
      agreement of the Participant and the Participating Company Group with
      respect to the subject matter contained herein and supersedes any prior
      agreements, understandings, restrictions, representations, or warranties
      among the Participant and the Participating Company Group with respect to
      such subject matter other than those as set forth or provided for
      herein.  In the event of any conflict between the provisions of
      this Agreement and those of the Plan, the provisions of the Plan shall
      control.  In the event of any conflict between the provisions of
      this Agreement and/or the Plan and the provisions of the Superseding
      Agreement, the Superseding Agreement shall
  control.

            

    

    

    
      	
               
      

            	
              16.

            	
              Applicable Law and
      Venue.  This 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. For purposes of litigating any dispute that arises
      directly or indirectly from the relationship of the parties as evidenced
      by this Agreement, the parties herby submit to and consent to the
      jurisdiction of the State of California and agree that such litigation
      shall be conducted only in the courts of Santa Clara County, California,
      or the federal courts of the United States for the Northern District of
      California, and no other courts, where this Agreement is made and/or
      performed.

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              17.

            	
              Application of Code
      Section 409A.  Notwithstanding
      any other provision of this Agreement, to the extent that (i) one or more
      of the payments or benefits received or to be received by the Participant
      pursuant to this Agreement would constitute deferred compensation subject
      to the requirements of Code Section 409A, and (ii) the Participant is a
      “specified employee” within the meaning of Code Section 409A, then such
      payment or benefit (or portion thereof) will be delayed until the earliest
      date following the Participant’s “separation from service” with the
      Participating Company Group within the meaning of Code 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 Code Section 409A, with all payments or benefits due
      thereafter occurring in accordance with the original
      schedule.  In addition, this Award and the payments and benefits
      to be provided hereunder are intended to comply in all respects with the
      applicable provisions of Code Section
409A.

            

    

    

    

    

    

    
      	
              ADOBE
      SYSTEMS INCORPORATED

            	 
      	
              ESCROW
      AGENT

            
	 	 	 
	 	 	 
	
              By:
      _______________________

            	 
      	
              By:
      ­­­­­__________________________________

            
	
                    Shantanu
      Narayen

            	 
      	
              [Designee
      of Corporate Secretary]

            
	
               
      Chief Executive Officer

            	 
      	
              [Title]

            
	
               
      Adobe Systems Incorporated

            	 
      	
              Adobe
      Systems Incorporated

            
	 	 	 
	
               
      Address:        345 Park
      Avenue

            	 
      	
              Address:        345
      Park Avenue

            
	
                   
      San Jose, CA 95110-2704

            	 
      	
              San Jose, CA
      95110-2704

            

    

    

    

    

    The
Participant represents that he or she is familiar with the terms and provisions
of this Agreement and hereby accepts the Stock subject to all of the terms and
provisions thereof.  The Participant hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the Board upon
any questions arising under this Agreement.

    

    
      
         

      

      
        9ex10_60.htm

    Exhibit
10.60

    ADOBE
SYSTEMS INCORPORATED

    NONSTATUTORY
STOCK OPTION AGREEMENT

    (DIRECTOR)

    

    THIS
NONSTATUTORY STOCK OPTION AGREEMENT (the “Option
Agreement”) is
made and entered into as of the Date of Option Grant by and between Adobe
Systems Incorporated and

    

     %%FIRST_NAME%-%
%%LAST_NAME%-%                                 (the
“Participant”).  The Company
has granted to the Participant pursuant to the Adobe Systems Incorporated 2003
Equity Incentive Plan (the “Plan”) an option to purchase
certain shares of Stock (the “Option”),
upon the terms and conditions set forth in this Option Agreement.

    

    1. Definitions
and Construction.

     

    
      	
              1.1  

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

            

    

     

    
      	
              (a)  

            	
              “Date of
      Option Grant” means
      %%OPTION_DATE,’Month DD, YYYY’%-%.

            

    

     

    
      	
              (b)  

            	
              “Number of
      Option Shares” means
      %%TOTAL_SHARES_GRANTED%-% shares of Stock, as adjusted from time to time
      pursuant to Section 10.

            

    

     

    
      	
              (c)  

            	
              “Exercise
      Price”
      means $%%OPTION_PRICE%-% per share of Stock, as adjusted from time to
      time pursuant to Section 10.

            

    

     

    
      	
              (d)  

            	
              “Initial
      Vesting Date” means the day
      immediately preceding the day of the first annual meeting of the
      stockholders of the Company (each such meeting, an “Annual Meeting”)
      following the Date of Option Grant.

            

    

     

    
      	
              (e)  

            	
              “Vested
      Shares”
      means, on any relevant date, that portion (disregarding any fractional
      share) of the Number of Option Shares determined by multiplying the Number
      of Option Shares by the “Vested
      Percentage” determined as of such
      date as follows:

            

    

    

    
      	 
      	 	
              Vested
      Percentage

            	 
	
              Prior
      to Initial Vesting Date

            	 	 	—	 
	 
      	 	 	 	 
	
              On
      Initial Vesting Date, provided the Participant’s Service has not
      terminated prior to such date.

            	 	 	25	%
	 
      	 	 	 	 
	
              Plus:

            	 	 	 	 
	
              On
      each subsequent anniversary of the Initial Vesting Date, until the Vested
      Percentage equals 100%, provided the Particpant’s Service has not
      terminated prior to such date.

            	 	 	25	%

    

    

    
      	
              (f)  

            	
              “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 in the United States (“U.S.”) on Form
S-8 under the Securities Act.

    

    
      	
              (g)  

            	
              “Board” means the Board of
      Directors of the Company.

            

    

     

    
      	
              (h)  

            	
              “Code” means the U.S.
      Internal Revenue Code of 1986, as amended, and any applicable regulations
      promulgated thereunder.

            

    

     

    
      	
              (i)  

            	
              “Committee” means the Executive
      Compensation Committee or other committee of the Board duly appointed to
      administer the Plan in respect of Directors 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.

            

    

     

    
      	
              (j)  

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

            

    

     

    
      	
              (k)  

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

            

    

     

    
      	
              (l)  

            	
              “Exchange
      Act” means
      the U.S. Securities Exchange Act of 1934, as
  amended.

            

    

     

    
      	
              (m)  

            	
              “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 Global Select 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 on www.Nasdaq.com 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.

            

    

     

    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.

     

    
      	
              (n)  

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

            

    

     

    
      	
              (o)  

            	
              “Option
      Expiration Date” means the date ten
      (10) years after the Date of Option
Grant.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      	
              (p)  

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

            

    

    

    
      	
              (q)  

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

            

    

     

    
      	
              (r)  

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

            

    

     

    
      	
              (s)  

            	
              “Securities
      Act” means
      the U.S. Securities Act of 1933, as
amended.

            

    

     

    
      	
              (t)  

            	
              “Service” means the
      Participant’s service with the Participating Company Group as a
      Director.  The Participant’s Service shall be deemed to have
      terminated if the Participant ceases to render Service to the
      Participating Company Group in such capacity.  However, the
      Participant’s Service shall not be deemed to have terminated merely
      because of a change in the Participating Company for which the Participant
      renders Service in such initial capacity, provided that there is no
      interruption or termination of the Participant’s
      Service.  Furthermore, the Participant’s Service with the
      Participating Company Group 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 with the Participating Company
      Group 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 Option
      Agreement.  The 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.

            

    

     

    
      	
              (u)  

            	
              “Stock” means the common
      stock of the Company, as adjusted from time to time in accordance with
      Section 10.

            

    

     

    
      	
              (v)  

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

            

    

     

    
      	
              1.2  

            	
              Construction.  Captions
      and titles contained herein are for convenience only and shall not affect
      the meaning or interpretation of any provision of this Option
      Agreement.  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.

            

    

     

    2. Tax
Status of Option.

     

    This
Option is intended to be a nonstatutory stock option and shall not be treated as
an incentive stock option within the meaning of Section 422(b) of the
Code.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    3. Administration.

     

    All
questions of interpretation concerning this Option Agreement shall be determined
by the Committee.  All determinations by the Committee shall be final
and binding upon all persons having an interest in the Option.  Any
Officer 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.

    

    4. Exercise
of the Option.

     

    
      	
              4.1  

            	
              Right to Exercise.  Except
      as otherwise provided herein, the Option shall be exercisable on and after
      the Initial Vesting Date and prior to the termination of the Option (as
      provided in Section 7) in an amount not to exceed the number of
      Vested Shares less the number of shares previously acquired upon exercise
      of the Option.  In no event shall the Option be exercisable for
      more shares than the Number of Option
Shares.

            

    

     

    
      	
              4.2  

            	
              Method of Exercise.  Exercise
      of the Option shall be by means of electronic notice in a form authorized
      by the Company, which shall be digitally signed or authenticated by the
      Participant in such manner as required by the notice and transmitted to
      the Equity Compensation Department of the Company or other authorized
      representative of the Company (including a third-party administrator
      designated by the Company).  In the event that the Participant
      is not authorized or is unable to provide electronic notice of exercise,
      the Option shall be exercised by written notice to the Company, which
      shall be signed by the Participant and delivered in person, by certified
      or registered mail, return receipt requested, by confirmed facsimile
      transmission, or by such other means as the Company may permit, to the
      Equity Compensation Department of the Company, or other authorized
      representative of the Company (including a third-party administrator
      designated by the Company).  Each such notice, whether
      electronic or written, must state the Participant’s election to exercise
      the Option, the number of whole shares of Stock for which the Option is
      being exercised and such other representations and agreements as to the
      Participant’s investment intent with respect to such shares as may be
      required pursuant to the provisions of this Option
      Agreement.  Further, each such notice must be received by the
      Company prior to the termination of the Option as set forth in
      Section 7 and must be accompanied by full payment of the aggregate
      Exercise Price for the number of shares of Stock being
      purchased.  The Option shall be deemed to be exercised upon
      receipt by the Company of such electronic or written notice and the
      aggregate Exercise Price.

            

    

     

    
      	
              4.3  

            	
              Payment
      of Exercise Price.

            

    

     

    
      	
              (a)  

            	
              Forms of Consideration
      Authorized.  Except as otherwise provided below, payment
      of the aggregate Exercise Price for the number of shares of Stock for
      which the Option is being exercised shall be made (i) in cash, by check or
      by cash equivalent or (ii) by means of a Cashless Exercise, as defined in
      Section 4.3(b).

            

    

     

    
      	
              (b)  

            	
              Cashless
      Exercise.  A “Cashless
      Exercise”
      means the delivery of a properly executed notice of exercise together with
      irrevocable instructions to a broker in a form acceptable to the Company
      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 pursuant to a program or procedure approved by the
      Company (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).  The
      Company reserves, at any and all times, the right, in the Company’s sole
      and absolute

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    discretion,
to establish, decline to approve or terminate any such program or procedure,
including with respect to the Participant notwithstanding that such program or
procedures may be available to others.

     

    
      	
              4.4  

            	
              Tax Withholding.  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”),
      the Participant acknowledges that the ultimate liability for all
      Tax-Related Items legally due by the Participant is and remains the
      Participant’s 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 the Option,
      including the grant, vesting or exercise of the Option, the subsequent
      sale of shares acquired pursuant to such exercise, or the receipt of any
      dividends and (ii) does not commit to structure the terms of the grant or
      any other aspect of the Option to reduce or eliminate the Participant’s
      liability for Tax-Related Items.  At the time of exercise of the
      Option, the Participant shall pay or make adequate arrangements
      satisfactory to the Participating Company Group to satisfy all withholding
      obligations of the Participating Company Group.  In this regard,
      at the time the Option is exercised, in whole or in part, or at any other
      time as reasonably requested by the Company, the Participant hereby
      authorizes withholding of all applicable Tax-Related Items from payroll
      and any other amounts payable to the Participant, and otherwise agrees to
      make adequate provision for withholding of all applicable Tax Related
      Items by the Participating Company Group, if any, which arise in
      connection with the Option.  Alternatively, or in addition, if
      permissible under applicable law, the Participating Company Group may (i)
      sell or arrange for the sale of shares acquired by the Participant to meet
      the withholding obligation of Tax-Related Items and/or (ii) withhold in
      shares, provided that only the amount of shares necessary to satisfy the
      minimum withholding amount are withheld.  Finally, the
      Participant 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 the Participant’s participation in the Plan that
      cannot be satisfied by the means previously described.  The
      Company shall have no obligation to process the exercise of the Option or
      to deliver shares of Stock until the obligations in connection with the
      Tax-Related Items as described in this section have been satisfied by the
      Participant.

            

    

    

    
      	
              4.5  

            	
              Beneficial Ownership of Shares;
      Certificate Registration.  The
      Participant hereby authorizes the Company, in its sole discretion, to
      deposit for the benefit of the Participant with any broker with which the
      Participant has an account relationship of which the Company has notice
      any or all shares acquired by the Participant pursuant to the exercise of
      the Option.  Except as provided by the preceding sentence, a
      certificate for the shares as to which the Option is exercised shall be
      registered in the name of the Participant, or, if applicable, in the names
      of the heirs of the Participant.

            

    

     

    
      	
              4.6  

            	
              Restrictions on Grant of the
      Option and Issuance of Shares.  The
      grant of the Option and the issuance of shares of Stock upon exercise of
      the Option shall be subject to compliance with all applicable requirements
      of federal, state or foreign law with respect to such
      securities.  The Option may not be exercised if the issuance of
      shares of Stock upon exercise 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, the
      Option may not be exercised unless (i) a registration statement under
      the Securities Act shall at the time of exercise of the Option be in
      effect with respect to the shares issuable upon exercise of the Option or
      (ii) in the opinion of legal counsel to the Company, the shares
      issuable upon exercise of the Option may be issued in accordance with the
      terms of an applicable exemption from the registration requirements of the
      Securities Act.  THE PARTICIPANT IS CAUTIONED THAT THE OPTION
      MAY NOT BE EXERCISED

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    UNLESS THE
FOREGOING CONDITIONS ARE SATISFIED.  ACCORDINGLY, THE PARTICIPANT MAY
NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS
VESTED.  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 subject to
the Option 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 exercise of the Option, 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.

    

     

    
      	
              4.7  

            	
              Fractional Shares.  The
      Company shall not be required to issue fractional shares upon the exercise
      of the Option.

            

    

     

    5. Nontransferability
of the Option.

     

    The Option
may be exercised during the lifetime of the Participant only by the Participant
or the Participant’s guardian or legal representative and may not be assigned or
transferred in any manner except by will or by the laws of descent and
distribution.  Following the death of the Participant, the Option, to
the extent provided in Section 8, may be exercised by the Participant’s
legal representative or by any person empowered to do so under the deceased
Participant’s will or under the then applicable laws of descent and
distribution.

    

    6. Nature of
Option.

     

    
      	 	
              In
      accepting the Option, the Participant acknowledges that:
  

            

    

    

    
      	
              6.1  

            	
              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 and this Option
      Agreement;

            

    

     

    
      	
              6.2  

            	
              the
      grant of the Option is voluntary and occasional and does not create any
      contractual or other right to receive future grants of Options, or
      benefits in lieu of Options, even if Options have been granted repeatedly
      in the past;

            

    

     

    
      	
              6.3  

            	
              all
      decisions with respect to future Option grants, if any, will be at the
      sole discretion of the Company; 

            

    

     

    
      	
              6.4  

            	
              the
      Participant’s participation in the Plan shall not create a right to
      employment or further service with the Participating Company Group and
      shall not interfere with any ability of the Participating Company Group to
      terminate the Participant’s relationship with the Company at any time with
      or without cause; 

            

    

     

    
      	
              6.5  

            	
              the
      Participant is voluntarily participating in the Plan;
  

            

    

     

    
      	
              6.6  

            	
              the
      Option 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;
      

            

    

     

    
      	
              6.7  

            	
              in
      the event that the Participant is not an employee of the Company, the
      Option grant will not be interpreted to form an employment contract or
      relationship with the Company; and furthermore, the Option grant will not
      be interpreted to form an employment contract with the other members of
      the Participating Company
Group;

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    
      	
              6.8  

            	
              the
      future value of the underlying shares is unknown and cannot be predicted
      with certainty; 

            

    

     

    
      	
              6.9  

            	
              if
      the underlying shares do not increase in value, the Option will have no
      value; 

            

    

     

    
      	
              6.10  

            	
              if
      the Participant exercises the Option and obtains shares, the value of
      those shares acquired upon exercise may increase or decrease in value,
      even below the Option price; and

            

    

     

    
      	
              6.11  

            	
              in
      consideration of the grant of the Option, no claim or entitlement to
      compensation or damages arises from termination of the Option or
      diminution in value of the Option or shares purchased through exercise of
      the Option resulting from termination of the Participant’s Service with
      the Participating Company Group (for any reason whether or not in breach
      of applicable labor laws) and the Participant irrevocably releases 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 signing
      this Option Agreement, Participant shall be deemed irrevocably to have
      waived his or her entitlement to pursue such a
  claim.

            

    

     

    7. Termination
of the Option.

     

    The Option
shall terminate and may no longer be exercised after the first to occur of
(a) the Option Expiration Date, (b) the last date for exercising the
Option following termination of the Participant’s Service as described in
Section 8, or (c) a Change of Control to the extent provided in
Section 9.

    

    8. Effect
of Termination of Service.

     

    
      	
              8.1  

            	
              Option
      Exercisability.

            

    

     

    
      	
              (a)  

            	
              Disability.  If
      the Participant’s Service terminates because of the Disability of the
      Participant, then the Option, to the extent unexercised and exercisable on
      the date on which the Participant’s Service terminated, may be exercised
      by the Participant (or the Participant’s guardian or legal representative)
      at any time prior to the expiration of twelve (12) months after the date
      on which the Participant’s Service terminated, but in any event no later
      than the Option Expiration Date.

            

    

     

    
      	
              (b)  

            	
              Death.  If the
      Participant’s Service terminates because of the death of the Participant,
      then the Option, to the extent unexercised and exercisable on the date on
      which the Participant’s Service terminated, may be exercised by the
      Participant’s legal representative or other person who acquired the right
      to exercise the Option by reason of the Participant’s death at any time
      prior to the expiration of twelve (12) months after the date on which the
      Participant’s Service terminated, but in any event no later than the
      Option Expiration Date.  The Participant’s Service shall be
      deemed to have terminated on account of death if the Participant dies
      within three (3) months after the Participant’s termination of
      Service.

            

    

     

    
      	
              (c)  

            	
              Other Termination of
      Service.  If the Participant’s Service terminates for any
      reason, except Disability, or death, the Option, to the extent unexercised
      and exercisable by the Participant on the date on which the Participant’s
      Service terminated, may be exercised by the Participant at any time prior
      to the expiration of three (3) months (or such other longer period of time
      as determined

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    by the
Committee, in its discretion) after the date on which the Participant’s Service
terminated, but in any event no later than the Option Expiration
Date.

     

    
      	
              8.2  

            	
              Extension if Exercise Prevented
      by Law.

            

    

     

    Notwithstanding
the foregoing, if the exercise of the Option within the applicable time periods
set forth in Section 8.1 is prevented by the provisions of
Section 4.6, the Option shall remain exercisable until three (3) months
after the date the Participant is notified by the Company that the Option is
exercisable, but in any event no later than the Option Expiration
Date.

     

    
      	
              8.3  

            	
              Extension if Participant
      Subject to Section 16(b).

            

    

     

    Notwithstanding
the foregoing, if a sale within the applicable time periods set forth in
Section 8.1 of shares acquired upon the exercise of the Option would
subject the Participant to suit under Section 16(b) of the Exchange Act,
the Option shall remain exercisable until the earliest to occur of (i) the
tenth (10th) day following the date on which a sale of such shares by the
Participant would no longer be subject to such suit, (ii) the one hundred
and ninetieth (190th) day after the Participant’s termination of Service, or
(iii) the Option Expiration Date.

     

    9. Change
of Control.

     

    In the
event of a Change of Control, any unexercised and/or unvested portions of this
Option shall become immediately exercisable and vested in full as of immediately
prior to the effective date of the Change of Control, subject to the
consummation of the Change in Control.

     

    10. 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, Exercise Price and
class of shares subject to the Option.  If a majority of the shares
which are of the same class as the shares that are subject to the Option are
exchanged for, converted into, or otherwise become (whether or not pursuant to
an Ownership Change Event) shares of another corporation (the “New
Shares”), the
Committee may unilaterally amend the Option to provide that the Option is
exercisable for New Shares.  In the event of any such amendment, the
Number of Option Shares and the Exercise Price shall be adjusted in a fair and
equitable manner, as determined by the Committee, in its
discretion.  Notwithstanding the foregoing, any fractional share
resulting from an adjustment pursuant to this Section 10 shall be rounded
down to the nearest whole number, and in no event may the Exercise Price be
decreased to an amount less than the par value, if any, of the stock subject to
the Option. The adjustments determined by the Committee pursuant to this
Section 10 shall be final, binding and conclusive.

    

    11. Rights
as a Stockholder; Rights to Continue Service.

     

    The
Participant shall have no rights as a stockholder with respect to any shares
covered by the Option until the date of the issuance of the shares for which the
Option has been exercised (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 10.   Nothing in this
Option Agreement shall confer upon the Participant any right to

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    continue
in the Service of a Participating Company or interfere in any way with any right
of the Participating Company Group to terminate the Participant’s Service at any
time.

    

    12. Miscellaneous
Provisions.

     

    
      	
              12.1  

            	
              Designation of
      Beneficiary.  Subject to local laws and procedures, the
      Participant may file with the Company a written designation of a
      beneficiary who, in the event of the death of the Participant, shall
      thereafter be entitled to exercise the Option to the extent that it
      remains exercisable in accordance with this Option
      Agreement.  Each designation will revoke all prior designations
      by the Participant, shall be in a form prescribed by the Company, and
      shall be effective only when filed by the Participant in writing with the
      Company during the Participant’s lifetime.  If the Participant
      is married and 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 the Participant dies
      without an effective designation of a beneficiary who is living at the
      time of the Participant’s death, the Option may be exercised by the
      Participant’s legal representative to the extent that it remains
      exercisable in accordance with this Option Agreement.  If the
      designated beneficiary survives the Participant but dies before exercising
      the Option to the full extent that it remains exercisable in accordance
      with this Option Agreement, then the Option shall be exercisable by the
      legal representative of such deceased designated beneficiary to the extent
      that it remains exercisable in accordance with this Option
      Agreement.  The determination of the Company as to which person,
      if any, qualifies as a designated beneficiary shall be final, conclusive
      and binding on all persons.

            

    

     

    
      	
              12.2  

            	
              Binding
      Effect.  This Option Agreement shall inure to the benefit
      of and be binding upon the parties hereto and their respective heirs,
      executors, administrators, successors and
  assigns.

            

    

     

    
      	
              12.3  

            	
              Termination or
      Amendment.  The Committee may terminate or amend the Plan
      or the Option at any time; provided, however, that except as provided in
      connection with a Change of Control, no such termination or amendment may
      adversely affect the Option or any unexercised portion hereof without the
      consent of the Participant unless such termination or amendment is
      necessary to comply with any applicable law or government
      regulation.  No amendment or addition to this Option Agreement
      shall be effective unless in
writing.

            

    

     

    
      	
              12.4  

            	
              Delivery of Documents and
      Notices.  Any document relating to participating in the
      Plan and/or notice required or permitted hereunder shall be given in
      writing and shall be deemed effectively given (except to the extent that
      this Option 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 the Participant by a
      Participating Company or at the address shown below that party’s signature
      to this Option Agreement 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 documents, which may include but do not necessarily include: the Plan
      Prospectus, this Option Agreement and U.S. financial reports of the
      Company, may be delivered to the Participant electronically.  In
      addition, the Participant may deliver electronically the notice called for
      by Section 4.2 (the “Notice of Exercise”) to the Company or to such third
      party involved in administering the Plan as the Company may designate from
      time to time.  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.

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
      	
              (b)  

            	
              Consent to Electronic
      Delivery.  The Participant acknowledges that the
      Participant has read Section 12.4 of this Option Agreement and consents to
      the electronic delivery of the Plan documents and the delivery of the
      Notice of Exercise, as described in Section 12.4(a) of this Option
      Agreement.  The Participant acknowledges that he or she may
      receive from the Company a paper copy of any documents delivered
      electronically at no cost if the Participant contacts the Company by
      telephone, through a postal service or electronic mail at
      equity@adobe.com.  The Participant further acknowledges that the
      Participant will be provided with a paper copy of any documents delivered
      electronically if electronic delivery fails; similarly, the Participant
      understands that the Participant must provide the Company or any
      designated third party with a paper copy of any documents delivered
      electronically if electronic delivery fails.  Also, the
      Participant understands that the Participant’s consent may be revoked or
      changed, including any change in the electronic mail address to which
      documents are delivered (if Participant has 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, the Participant understands that he
      or she is not required to consent to electronic
  delivery.

            

    

    

    
      	
              12.5  

            	
              Data Privacy
      Consent.  The
      Participant hereby explicitly and unambiguously consents to the
      collection, use and transfer, in electronic or other form, of the
      Participant’s 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 the Participant’s participation
      in the Plan.

            

    

     

    The
Participant understands that the Company and the Participating Company Group
hold certain personal information about the Participant, including, but not
limited to, the Participant’s 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 all Options or any other entitlement to shares of Stock
awarded, canceled, exercised, vested, unvested or outstanding in the
Participant’s favor, for the purpose of implementing, administering and managing
the Plan (“Data”).  The Participant understands that Data may be
transferred to any third parties assisting in the implementation, administration
and management of the Plan, that these recipients may be located in the
Participant’s country or elsewhere, and that the recipient’s country may have
different data privacy laws and protections than the Participant’s
country.  The Participant understands that he or she may request a
list with the names and addresses of any potential recipients of the Data by
contacting the Participant’s local human resources
representative.  The Participant authorizes the recipients to receive,
possess, use, retain and transfer the Data, in electronic or other form, for the
purposes of implementing, administering and managing the Participant’s
participation in the Plan, including any requisite transfer of such Data as may
be required to a broker or other third party with whom the Participant may elect
to deposit any shares of Stock acquired upon exercise of the
Option.  The Participant understands that Data will be held only as
long as is necessary to implement, administer and manage the Participant’s
participation in the Plan.  The Participant understands that he or she
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
the Participant’s local human resources representative.  The
Participant understands, however, that refusing or withdrawing the Participant’s
consent may affect the Participant’s ability to participate in the
Plan.  For more information on the consequences of the Participant’s
refusal to consent or withdrawal of consent, the Participant understands that he
or she may contact the Participant’s local human resources
representative.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
      	
              12.6  

            	
              Integrated
      Agreement.  This Option Agreement and the Plan constitute
      the entire understanding and agreement of the Participant and the
      Participating Company Group with respect to the subject matter contained
      herein and supersedes any prior agreements, understandings, restrictions,
      representations, or warranties among the Participant and the Participating
      Company Group with respect to such subject matter other than those as set
      forth or provided for herein.  To the extent contemplated
      herein, the provisions of this Option Agreement shall survive any exercise
      of the Option and shall remain in full force and effect.  Any
      capitalized terms not defined herein shall have the meaning set forth in
      the Plan.

            

    

     

    
      	
              12.7  

            	
              Applicable
      Law.  This Option 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. For purposes of litigating any dispute that arises
      directly or indirectly from the relationship of the parties as evidenced
      by this Option Agreement, the parties herby submit to and consent to the
      jurisdiction of the State of California and agree that such litigation
      shall be conducted only in the courts of Santa Clara County, California,
      or the federal courts of the United States for the Northern District of
      California, and no other courts, where this Option Agreement is made
      and/or performed.

            

    

     

    

     

    

     

    
      	
              ADOBE
      SYSTEMS INCORPORATED

            
	
              By:____________________

            
	
              Shantanu
      Narayen

            
	
              Title:Chief
      Executive Officer

            
	 
      
	
              Address:          345
      Park Avenue

            
	
              San Jose, CA
      95110-2704

            

    

    

     

    

    

    The
Participant represents that the Participant is familiar with the terms and
provisions of this Option Agreement and hereby accepts the Option subject to all
of the terms and provisions thereof.  The Participant hereby agrees to
accept as binding, conclusive and final all decisions or interpretations of the
Committee upon any questions arising under this Option
Agreement.

    
      
         

      

      
        11

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