Document:

Exhibit 10.1

 

EXECUTIVE RESIGNATION AGREEMENT

AND GENERAL RELEASE OF CLAIMS

 

1.     Jimmie E.
Stephens (“Executive”) was employed by Adobe Systems Incorporated (the “Company”)
on or about February 5, 1990. 
Executive has now decided to resign from his employment with the Company. 
It is the Company’s desire to provide Executive with certain benefits
that he would not otherwise be
entitled to receive upon his
resignation and to resolve any claims that Executive has or may have against
the Company.  Accordingly, Executive and
the Company agree as set forth below.  This Agreement shall be effective on the
eighth day after it is signed by Executive, but only if Executive has
not previously revoked his
acceptance of this Agreement.

 

2.     Executive hereby
resigns voluntarily from any
positions that he holds as an officer of the Company and/or any of its
subsidiaries, effective as of March 31,
2005 (the “Resignation Date”). Executive and the Company agree that his
employment with the Company and any of its subsidiaries will terminate
effective as of November 30, 2005 (the “Termination Date”). During the
period between the Resignation Date and the Termination Date: (a) Executive
will provide transition assistance as requested by the Company, and will take
all available paid time off, including his sabbatical, in accordance with the
Company’s paid time off policies; and (b) the Company will continue to
provide Executive with the same base salary and employee benefits that he was
receiving immediately prior to the Resignation Date.

 

3.     In
addition, the Company shall provide Executive with the following benefits:

 

(a)                                  a lump sum severance payment of $714,000,
less applicable withholding;

 

(b)                                 in
the event that Executive elects to obtain continued group health insurance
coverage for himself and his eligible dependents in accordance with federal law
(COBRA) following the Termination Date, the Company will pay for the premiums
for such coverage through the earlier of November 30, 2006 or the date on
which Executive first becomes eligible for other group health insurance
coverage; thereafter, Executive may elect to purchase continued group health
insurance coverage at his own
expense in accordance with COBRA;

 

(c)                                  the
Company hereby assigns to Executive all right, title and interest in and to the
laptop computer that was provided to Executive by the Company, and the Company
also assigns to Executive any Adobe software that is on the computer; by
signing this Agreement, Executive agrees that his use of such software shall be
solely in accordance with the terms of the Company’s end user license
agreements that apply to such software, which license agreements are hereby

 

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incorporated by reference into this
Agreement; Executive must remove all non-Adobe software and all Adobe
confidential or proprietary information, including all financial information,
from the computer on or before the Termination Date;

 

(d)                                 the
Company agrees that it will not contest any claim for unemployment benefits that
may be filed by Executive after the Termination
Date; and

 

(e)                                  payment for 2005 profit sharing and
Annual Incentive Plan earned by
Executive, if any, through the Termination Date, per the terms of all plan documents (AIP terms as
applied to the SVP WW Sales and Field Ops).

 

Executive
acknowledges that as of the Termination Date he has been paid all wages and
accrued, unused PTO that Executive earned during his employment with the
Company. Executive will be reimbursed by the Company for any reasonable business
expenses incurred by Executive in the course of his employment with the
Company, pursuant to the Company’s applicable business expense reimbursement
policies. Executive’s rights with respect to any equity awards (such as stock
options) shall be determined in accordance with the terms of the applicable
equity award plans and/or agreements, which are not modified in any way by this
Agreement.  Executive understands and
acknowledges that he shall not be entitled to any payments or benefits from the
Company other than those expressly set forth in this paragraph 3.  Company shall provide the severance payment
in paragraph 3(a) to Executive within 15 days of the date this Agreement
is re-signed by Executive on or after the Termination Date, provided Executive
does not revoke the Agreement prior to the eighth day after re-signing.

 

4.     Executive
and his successors release the
Company and its shareholders, investors, officers, directors, employees,
agents, attorneys, insurers, legal successors, and assigns of and from any and
all claims, actions and causes of action, whether now known or unknown, which
Executive now has, or at any other time, had or shall or may have against the
released parties based upon or arising out of any matter, cause, fact, thing,
act or omission whatsoever occurring or existing at any time up to and
including the Termination Date,
including, but not limited to, any claims of breach of contract, wrongful
termination, retaliation, fraud, defamation, infliction of emotional distress
or national origin, race, sex, sexual orientation, disability or other
discrimination or harassment under the Civil Rights Act of 1964, the Age
Discrimination In Employment Act of 1967, the Americans With Disabilities Act,
the Fair Employment and Housing Act or any other applicable law.  As additional consideration for the severance
benefits described in paragraph 3, Executive agrees that he will reaffirm this
release of claims by re-signing this Agreement in the space provided at the end
of the Agreement on or after the Termination Date; until the eighth day after
Executive so reaffirms

 

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this release of claims without revoking it, he shall not be entitled to
any of the severance benefits described in paragraph 3.

 

5.               Executive
acknowledges that he has read section 1542
of the Civil Code of the State of California, which states in full:

 

A general release does not extend to claims
which the creditor does not know or suspect to exist in his
favor at the time of executing the release, which if known by him
must have materially affected his
settlement with the debtor.

 

Executive
waives any rights that he has or may have under section 1542 or any
similar provision of the laws of any other jurisdiction to the full extent that
he may lawfully waive such rights pertaining to this general release of claims,
and affirms that he is releasing all known and unknown claims that he has or
may have against the parties listed above.

 

6.     Executive
acknowledges and agrees that he shall continue to be bound by and comply with
the terms of the Employee Inventions and Proprietary Rights Assignment
Agreement that Executive signed in connection with his employment by the
Company, which agreement is incorporated herein by reference.  Executive acknowledges and agrees that due to
the unique nature of the Company’s confidential information, there will be no
adequate remedy at law for any breach of Executive’s obligations.  Executive further acknowledges that any such
breach will result in irreparable harm to the Company and, therefore, that upon
any such breach or any threat thereof, the Company shall be entitled to
immediate equitable relief, including but not limited to injunction, in
addition to whatever remedies the Company may have at law.

 

7.     Executive
agrees that he shall not
directly or indirectly disclose any of the terms of this Agreement to anyone
other than his immediate family
or counsel, except as such disclosure may be required for accounting or tax
reporting purposes or as otherwise may be required by law, unless the Company
has previously publicly disclosed such terms.

 

8.     Executive
further agrees that he will not,
at any time in the future, make any critical or disparaging statements about
the Company, its products or its employees, unless such statements are made
truthfully in response to a subpoena or other legal process.  Employee further agrees that Employee agrees
that for a period of twenty-four months after the Termination Date, he shall
not, either directly or indirectly, solicit or encourage any employee of the
Company or any affiliate of the Company to terminate his or her employment with
the Company or its affiliate.

 

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9.     Executive
agrees that in the event of his breach of any of the provisions of paragraphs 8
or 11, it will be impractical and extremely difficult to determine the actual
damages suffered by the Company as a result of that breach. Accordingly,
Executive agrees that if he breaches any provision of paragraphs 8 or 11, he
shall repay the Company 30% of the net sum (that is, after deducting all taxes
and other withholdings) that he receives pursuant to paragraph 3(a) as
liquidated damages.

 

10.   Company
agrees that it will not, at any
time in the future, make any critical or disparaging statements about
Executive, unless such statements are made truthfully in response to a subpoena
or other legal process.

 

11.   Following
the Termination Date, Executive agrees to provide reasonable assistance to the
Company in connection with any litigation to which the Company is or may become
a party and with respect to which Executive possesses any relevant knowledge or
expertise. Executive’s assistance will be provided at mutually convenient
times, and the Company will reimburse Executive for any reasonable expenses
incurred by him in providing such assistance.

 

12.   In
the event of any legal action relating to or arising out of this Agreement, the
prevailing party shall be entitled to recover from the losing party its
attorneys’ fees and costs incurred in that action.

 

13.   In
response to inquiries from prospective employers regarding Executive, the
Company will provide no information other than Executive’s dates of employment
and positions held with the Company.

 

14.   This
Agreement constitutes the entire agreement between the parties with respect to
the subject matter hereof and supersedes all prior negotiations and agreements,
whether written or oral.  This Agreement
may not be modified or amended except by a document signed by an authorized
officer of the Company and Executive.

 

4

 

EXECUTIVE UNDERSTANDS
THAT HE
MAY CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS AGREEMENT AND THAT HE
IS GIVING UP ANY LEGAL CLAIMS HE
HAS AGAINST THE PARTIES RELEASED ABOVE BY
SIGNING THIS AGREEMENT.  EXECUTIVE
FURTHER UNDERSTANDS THAT HE
MAY HAVE UP TO 21 DAYS TO CONSIDER THIS AGREEMENT, THAT HE
MAY REVOKE IT AT ANY TIME DURING THE 7 DAYS AFTER HE
SIGNS IT, AND THAT IT SHALL NOT BECOME EFFECTIVE UNTIL THAT 7-DAY PERIOD HAS
PASSED.  EXECUTIVEACKNOWLEDGES THAT HE IS
SIGNING THIS AGREEMENT KNOWINGLY, WILLINGLY, AND VOLUNTARILY IN EXCHANGE FOR
THE COMPENSATION AND BENEFITS DESCRIBED IN PARAGRAPHS 2 AND 3.

 

 

	
  Effective:

  	
  April 15

  	
  , 2005

  	
  /s/ Jimmie E. Stephens

  
	
   

  	
   

  	
   

  	
  Jimmie E. Stephens

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Effective:

  	
  April 15

  	
  , 2005

  	
  ADOBE SYSTEMS INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa Townsley

  
	
   

  	
   

  	
   

  
						

 

 

By re-signing this Agreement on or after the Termination Date, I hereby
reaffirm the release of all known and unknown claims set forth in paragraphs 4
and 5 above.  I understand that I may
revoke this Agreement at any time during the 7 days after I re-sign it.

 

 

	
  Effective:

  	
   

  	
  , 2005

  	
   

  
	
   

  	
   

  	
   

  	
  Jimmie E. Stephens

  
					

 

5Exhibit 10.2

 

WHEREAS, the Adobe Systems Incorporated Executive Severance Plan in the
Event of a Change of Control (the “Retention Plan”) was established when Bruce
Chizen was both President and Chief Executive Officer of the Company and a
party to a separate retention agreement;

 

WHEREAS, the Retention Plan does not cover someone in the role of
either President or Chief Executive Officer;

 

WHEREAS, the Company has since promoted Shantanu Narayen to the role of
President, while Mr. Chizen remains Chief Executive Officer, and Mr. Narayen
does not have a separate retention agreement;

 

WHEREAS, the Executive Compensation Committee desires to provide
retention benefits for Mr. Narayen and any future President or Chief
Executive Officer of the Company to encourage their continued attention and
dedication in the face of potentially disturbing circumstances arising from any
possible Change of Control (as defined in the Retention Plan);

 

WHEREAS, the Executive Compensation Committee therefore desires to
amend the Retention Plan to ensure that anyone at Vice President level or a
more senior level is covered under its terms and conditions, provided they do
not also benefit from a separate individual retention and/or severance
agreement.

 

NOW THEREFORE, BE IT RESOLVED, that Section 1.18 of the Retention
Plan is hereby amended and restated in full as follows:

 

1.18                           “Group
I Participant” shall mean each senior management employee of a
Participating Company who (i) is on the U.S. payroll, (ii) is not a
party to any other retention and/or severance agreement with the Participating
Company Group that is not otherwise waived in accordance with Section 3.9,
and (iii) on the Change of Control Date, is classified as a Vice President
(or any more senior role) of a Participating Company.

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