Document:

Exhibit
10.2

 

AMENDMENT NO. 1 TO THE 

SECURITY AGREEMENT

 

THIS AMENDMENT NO. 1 TO THE SECURITY AGREEMENT (this “Amendment Agreement”),
dated as of January 25, 2010, is entered into by and among Etelos, Inc.,
a Delaware corporation (the “Company”), all of the Subsidiaries of the
Company (such subsidiaries, the “Guarantors” and together with the
Company, the “Debtors”) and the holders of the September 2009
Debentures (as defined below) and the Morissette Debenture (as defined below)
and identified on the signature pages hereto (the “Purchasers”).

 

WHEREAS, the Company, Enable Growth Partners LP (“Enable”),
Aequitas  Partner Fund LLC (“Aequitas”)
and R. Patrick Hanlin (“Hanlin”) are parties to that certain Securities
Purchase Agreement dated September 29, 2009 (the “September Purchase
Agreement”), pursuant to which the Company issued to Enable, Aequitas and
Hanlin 10% Senior Secured Convertible Debentures in the original principal
amount of, in the aggregate, $3,000,000 (the “September 2009 Debentures”);

 

WHEREAS, the Company, Enable, Aequitas and Hanlin entered into
a Security Agreement dated September 29, 2009 (the “Security Agreement”),
pursuant to which the September 2009 Debentures are secured by certain
collateral belonging to the Company as described therein;

 

WHEREAS, the Company entered into a Securities Purchase
Agreement with Don Morissette, LLC (“Morissette”) of even date herewith
(the “Morissette Purchase Agreement”), pursuant to which the Company
will issue 10% Senior Secured Convertible Debentures to Morissette with
substantially the same terms as the September 2009 Debentures in the
aggregate original principal amount of $375,000 (the “Morissette Debentures”);
and

 

WHEREAS, the Debtors, Enable, Aequitas, Hanlin and Morissette
desire to amend the Security Agreement so that the Morissette Debentures are
secured by the Security Agreement.

 

NOW, THEREFORE, in consideration of the terms and conditions
contained in this Amendment Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties, intending to be legally bound hereby, agree as follows:

 

1.                                       Definition of
Debentures. The definition of “Debentures” in the introductory
paragraph of the Security Agreement is hereby amended to include the September 2009
Debentures and the Morissette Debentures, which have the original principal
amount of, in the aggregate, $3,375,000.

 

2.                                       Secured Parties.  For the avoidance of doubt, the definition of
“Secured Parties” in the Security Agreement is hereby amended to consist of
Enable, Aequitas, Hanlin and Morissette.

 

1

 

3.                                       Annex B.  The last sentence of paragraph 4 in Annex B
to the Security Agreement is deleted in its entirety and replaced with the
following:

 

Without limiting the foregoing, (a) except for as
provided in paragraph 2 of this Annex B, no Secured Party shall have any right
of action whatsoever against the Agent as a result of the Agent acting or
refraining from acting hereunder in accordance with the terms of the Agreement
or any other Transaction Document and the Debtors shall have no right to
question or challenge the authority of, or the instructions given to, the Agent
pursuant to the foregoing and (b) the Agent shall not be required to take any
action which the Agent believes (i) could reasonably be expected to expose
it to personal liability or (ii) is contrary to this Agreement, the
Transaction Documents or applicable law.

 

4.                                       Effect on
Transaction Documents.  Except as expressly set forth above,
all of the terms and conditions of the Security Agreement shall continue in
full force and effect after the execution of this Amendment Agreement and shall
not be in any way changed, modified or superseded by the terms set forth
herein, including, but not limited to, any other obligations the Debtors may
have to the Secured Parties under the Security Agreement.  Notwithstanding
the foregoing, this Amendment Agreement shall be deemed for all purposes as an
amendment to the Security Agreement as required to serve the purposes hereof,
and in the event of any conflict between the terms and provisions of the
Security Agreement, on the one hand, and the terms and provisions of this
Amendment Agreement, on the other hand, the terms and provisions of this Amendment
Agreement shall prevail.

 

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment Agreement to be duly executed on the day and year first above written.
 
 

	
  ETELOS,
  INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:
  Daniel J.A. Kolke

  	
   

  
	
   

  	
  Title:
  Chief Executive Officer

  	
   

  

 

[SIGNATURE PAGE OF HOLDERS
FOLLOWS]

 

 

[SIGNATURE PAGE OF HOLDERS TO ETLO
AMENDMENT AGREEMENT]

 

	
  Name of Purchaser: 

  	
  Enable Growth Partners LP

  
	
   

  
	
  Signature of
  Authorized Signatory of Investing entity:

  	
   

  
	
   

  	
   

  
	
  Name of Authorized Signatory:

  	
  Mitch Levine

  
	
   

  
	
  Title of Authorized Signatory:

  	
  CEO

  

 

[SIGNATURE
PAGE OF HOLDERS FOLLOWS]

 

 

[SIGNATURE PAGE OF HOLDERS TO ETLO
AMENDMENT AGREEMENT]

 

	
  Name of Purchaser: 

  	
  Aequitas Partner Fund, LLC

  
	
   

  
	
  Signature of
  Authorized Signatory of Investing entity:

  	
   

  
	
   

  	
   

  
	
  Name of Authorized Signatory: 

  	
  Aequitas Investment Management,
  LLC as Manager

  
	
   

  	
   

  
	
  Title of Authorized Signatory: 

  	
  Brian Oliver, Executive Vice
  President

  

 

[SIGNATURE
PAGE OF HOLDERS FOLLOWS]

 

 

[SIGNATURE PAGE OF HOLDERS TO ETLO
AMENDMENT AGREEMENT]

 

	
  Name of Purchaser:

  	
  R. Patrick Hanlin

  
	
   

  	
   

  
	
  Signature of
  Authorized Signatory of Investing entity:

  	
   

  
	
   

  	
   

  
	
  Name of Authorized Signatory: 

  	
  R. Patrick Hanlin

  

 

[SIGNATURE
PAGE OF HOLDERS FOLLOWS]

 

 

[SIGNATURE PAGE OF HOLDERS TO ETLO
AMENDMENT AGREEMENT]

 

	
  Name of Purchaser:

  	
  Don Morissette, LLC

  
	
   

  	
   

  	
   

  
	
  Signature of
  Authorized Signatory of Investing entity:

  	
   

  
	
   

  	
   

  
	
  Name of Authorized Signatory: 

  	
  Donald W. MorissetteExhibit
4.1

 

ADOBE SYSTEMS INCORPORATED

 

Officer’s
Certificate

 

February 1, 2010

 

Reference is made to the Indenture dated as of January 25,
2010 (the “Indenture”) by and between Adobe
Systems Incorporated (the “Issuer”) and
Wells Fargo Bank, National Association, as trustee (the “Trustee”).  The Trustee is the trustee for any and all
securities issued under the Indenture. 
Pursuant to Section 2.01 and Section 2.03 of the Indenture the
undersigned officer does hereby certify, in connection with the issuance of (i) $600,000,000  aggregate principal amount of
3.250% Notes due 2015 (the “2015  Notes”) and (ii) $900,000,000  aggregate
principal amount of 4.750% Notes due 2020 (the “2020
Notes”, and, together with the 2015
Notes, the “Notes”), that the terms of the Notes
are as follows:

 

Capitalized terms used but not otherwise defined
herein shall have the meanings specified in the Indenture.

 

2015
Notes

 

	
  Title:

  	
   

  	
  3.250%
  Notes due 2015

  
	
   

  	
   

  	
   

  
	
  Issuer:

  	
   

  	
  Adobe
  Systems Incorporated

  
	
   

  	
   

  	
   

  
	
  Trustee,
  Registrar, Transfer Agent, Authenticating Agent, and Paying Agent:

  	
   

  	
  Wells
  Fargo Bank, National Association

  
	
   

  	
   

  	
   

  
	
  Aggregate
  Principal Amount at Maturity:

  	
   

  	
  $600,000,000

  
	
   

  	
   

  	
   

  
	
  Principal
  Payment Date:

  	
   

  	
  February 1,
  2015

  
	
   

  	
   

  	
   

  
	
  Interest:

  	
   

  	
  3.250%
  per annum

  
	
   

  	
   

  	
   

  
	
  Date
  from which Interest will Accrue:

  	
   

  	
  February 1,
  2010

  
	
   

  	
   

  	
   

  
	
  Interest
  Payment Dates:

  	
   

  	
  February 1
  and August 1, commencing on August 1, 2010

  
	
   

  	
   

  	
   

  
	
  Redemption:

  	
   

  	
  The
  Issuer may at its option redeem the 2015 Notes in whole or in part, at any
  time or from time to time prior to their maturity, on at least 30 days, but
  not more than 60 days, prior notice mailed to the registered address of each
  holder of the 2015 Notes, at a redemption price,

  

 

 

	
   

  	
   

  	
  calculated
  by the Issuer, equal to the greater of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i) 
  100% of the principal amount of the 2015 Notes being redeemed; and

   

  (ii) 
  the sum of the present values of the remaining scheduled payments of
  principal and interest thereon (exclusive of interest accrued as of the date
  of redemption) discounted to the redemption date on a semiannual basis (assuming
  a 360-day year consisting of twelve 30-day months) of the 2015 Notes being
  redeemed at the Treasury Rate (as defined in the 2015 Notes) plus 15 basis
  points,

   

  plus,
  in each case, accrued interest thereon to the date of redemption.

  
	
   

  	
   

  	
   

  
	
  Repurchase
  upon a Change of Control

  	
   

  	
  Upon
  the occurrence of a Change of Control Triggering Event (as defined in the
  form of 2015 Notes attached hereto as Exhibit A),
  Adobe Systems Incorporated will be required to make an offer to purchase the
  Securities at a price equal to 101% of their principal amount plus accrued
  and unpaid interest to the date of repurchase.

  
	
   

  	
   

  	
   

  
	
  Conversion:

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Sinking
  Fund:

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Denominations:

  	
   

  	
  $2,000
  and multiples of $1,000 thereafter

  
	
   

  	
   

  	
   

  
	
  Miscellaneous:

  	
   

  	
  The
  terms of the 2015 Notes shall include such other terms as are set forth in
  the form of 2015 Notes attached hereto as Exhibit A
  and in the Indenture.

  

 

2020
Notes

 

	
  Title:

  	
   

  	
  4.750%
  Notes due 2020

  
	
   

  	
   

  	
   

  
	
  Issuer:

  	
   

  	
  Adobe
  Systems Incorporated

  
	
   

  	
   

  	
   

  
	
  Trustee,
  Registrar, Transfer Agent, Authenticating Agent, and Paying Agent:

  	
   

  	
  Wells
  Fargo Bank, National Association

  
	
   

  	
   

  	
   

  
	
  Aggregate
  Principal Amount at 

  	
   

  	
  $900,000,000

  

 

2

 

	
  Maturity:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Principal
  Payment Date:

  	
   

  	
  February 1,
  2020

  
	
   

  	
   

  	
   

  
	
  Interest:

  	
   

  	
  4.750%
  per annum

  
	
   

  	
   

  	
   

  
	
  Date
  from which Interest will Accrue:

  	
   

  	
  February 1,
  2010

  
	
   

  	
   

  	
   

  
	
  Interest
  Payment Dates:

  	
   

  	
  February 1
  and August 1, commencing on August 1, 2010

  
	
   

  	
   

  	
   

  
	
  Redemption:

  	
   

  	
  The
  Issuer may at its option redeem the 2020 Notes in whole or in part, at any
  time or from time to time prior to their maturity, on at least 30 days, but
  not more than 60 days, prior notice mailed to the registered address of each
  holder of the 2020 Notes, at a redemption price, calculated by the Issuer,
  equal to the greater of:

   

  (i) 
  100% of the principal amount of the 2020 Notes being redeemed; and 

   

  (ii) 
  the sum of the present values of the remaining scheduled payments of
  principal and interest thereon (exclusive of interest accrued as of the date
  of redemption) discounted to the redemption date on a semiannual basis
  (assuming a 360-day year consisting of twelve 30-day months) of the 2020
  Notes being redeemed at the Treasury Rate (as defined in the 2020 Notes) plus
  20 basis points,

   

  plus,
  in each case, accrued interest thereon to the date of redemption.

  
	
   

  	
   

  	
   

  
	
  Repurchase
  upon a Change of Control

  	
   

  	
  Upon
  the occurrence of a Change of Control Triggering Event (as defined in the
  form of 2020 Notes attached hereto as Exhibit B),
  Adobe Systems Incorporated will be required to make an offer to purchase the
  Securities at a price equal to 101% of their principal amount plus accrued
  and unpaid interest to the date of repurchase.

  
	
   

  	
   

  	
   

  
	
  Conversion:

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Sinking
  Fund:

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Denominations:

  	
   

  	
  $2,000
  and multiples of $1,000 thereafter

  

 

3

 

	
  Miscellaneous:

  	
   

  	
  The
  terms of the 2020 Notes shall include such other terms as are set forth in
  the form of 2020 Notes attached hereto as Exhibit B
  and in the Indenture.

  

 

Subject to the representations, warranties and
covenants described in the Indenture, as amended or supplemented from time to
time, the Issuer shall be entitled, subject to authorization by the Board of
Directors of the Issuer and an Officer’s Certificate, to issue additional notes
from time to time under each series of notes issued hereby.  Any such additional notes of a series shall
have identical terms as the 2015 Notes or the 2020 Notes, as the case may be,
issued on the issue date, other than with respect to the date of issuance and
the issue price (together the “Additional Notes”).  Any Additional Notes will be issued in
accordance with Section 2.03 of the Indenture.

 

Such officer has read and understands the provisions
of the Indenture and the definitions relating thereto.  The statements made in this Officer’s
Certificate are based upon the examination of the provisions of the Indenture
and upon the relevant books and records of the Issuer.  In such officer’s opinion, such officer has
made such examination or investigation as is necessary to enable such officer
to express an informed opinion as to whether or not the covenants and
conditions of such Indenture relating to the issuance and authentication of the
Notes have been complied with.  In such
officer’s opinion, such covenants and conditions have been complied with.

 

4

 

IN WITNESS WHEREOF, the undersigned officer of the
Issuer has duly executed this certificate as of the date first set forth above.

 

 

	
   

  	
  ADOBE
  SYSTEMS INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mark
  Garrett

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  

 

[Signature page to Officer’s Certificate
pursuant to the Indenture]

 

 

EXHIBIT A

 

[FORM OF NOTES DUE 2015]

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO.  OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS A BENEFICIAL INTEREST HEREIN.

 

TRANSFERS OF THIS NOTE ARE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE ARE LIMITED
TO TRANSFERS MADE IN ACCORDANCE WITH THE TRANSFER PROVISIONS OF THE INDENTURE.

 

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL
DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE
TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

 

ADOBE SYSTEMS INCORPORATED

3.250% Notes due 2015

 

	
  No. 1

  	
   

  	
  CUSIP No.: 00724F AA9

  
	
   

  	
   

  	
  ISIN No.: US00724FAA93

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $600,000,000

  

 

ADOBE SYSTEMS INCORPORATED, a Delaware corporation
(the “Issuer”), for value received promises
to pay to CEDE & CO. or registered assigns the principal sum of SIX
HUNDRED MILLION DOLLARS on February 1, 2015.

 

Interest Payment Dates: February 1 and August 1
(each, an “Interest Payment Date”),
commencing on August 1, 2010.

 

Interest Record Dates: January 15 and July 15
(each, an “Interest Record Date”).

 

Reference is made to the further provisions of this
Note contained herein, which will for all purposes have the same effect as if
set forth at this place.

 

7

 

IN WITNESS WHEREOF, the Issuer has caused this Note
to be signed manually or by facsimile by its duly authorized officer under its
corporate seal.

 

 

	
   

  	
  ADOBE
  SYSTEMS INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   Mark Garrett

  
	
   

  	
   

  	
  Title:

  	
   Executive Vice President and 
  Chief Financial Officer

  

 

 

[Seal
of Adobe Systems Incorporated]

 

 

Attest:

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   Stuart Fagin

  
	
   

  	
  Title:

  	
   Associate General Counsel and 
  Assistant Secretary

  
				

 

8

 

This is one of the Notes of the series designated
herein and referred to in the within-mentioned Indenture.

 

Dated:
February 1, 2010

 

	
   

  	
  WELLS
  FARGO BANK, 

  NATIONAL ASSOCIATION, 

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

9

 

(REVERSE OF NOTE)

 

ADOBE SYSTEMS INCORPORATED

3.250% Notes due 2015

 

1.             Interest.

 

Adobe Systems Incorporated (the “Issuer”) promises to pay interest on the principal amount of
this Note at the rate per annum described above.  Cash interest on the Notes will accrue from
the most recent date to which interest has been paid; or, if no interest has
been paid, from February 1, 2010. 
Interest on this Note will be paid to but excluding the relevant
Interest Payment Date.  The Issuer will
pay interest semi-annually in arrears on each Interest Payment Date, commencing
August 1, 2010.  Interest will be computed
on the basis of a 360-day year consisting of twelve 30-day months in a manner
consistent with Rule 11620(b) of the NASD Uniform Practice Code.

 

The Issuer shall pay interest on overdue principal
from time to time on demand at the rate borne by the Notes and on overdue
installments of interest (without regard to any applicable grace periods) to
the extent lawful.

 

2.             Paying
Agent.

 

Initially, Wells Fargo Bank, National Association
(the “Trustee”) will act as paying
agent.  The Issuer may change any paying
agent without notice to the Holders.

 

3.             Indenture;
Defined Terms.

 

This Note is one of the 3.250% Notes due 2015 (the “Notes”) issued under an indenture dated as of January 25,
2010 (the “Base Indenture”) by and between
the Issuer and the Trustee, and established pursuant to an Officer’s
Certificate dated February 1, 2010, issued pursuant to Section 2.01
and Section 2.03 thereof (together, the “Indenture”).  This Note is a “Security” and the Notes are “Securities”
under the Indenture.

 

For purposes of this Note, unless otherwise defined
herein, capitalized terms herein are used as defined in the Indenture.  The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) (the “TIA”) as in effect on the date on which the Indenture was
qualified under the TIA.  Notwithstanding
anything to the contrary herein, the Notes are subject to all such terms, and
Holders of Notes are referred to the Indenture and the TIA for a statement of
them.  To the extent the terms of the
Indenture and this Note are inconsistent, the terms of the Indenture shall
govern.

 

10

 

4.             Denominations; Transfer; Exchange.

 

The Notes are in registered form, without coupons,
in denominations of $2,000 and multiples of $1,000 thereafter.  A Holder shall register the transfer or
exchange of Notes in accordance with the Indenture.  The Issuer may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and to pay
certain transfer taxes or similar governmental charges payable in connection
therewith as permitted by the Indenture. 
The Issuer need not issue, authenticate, register the transfer of or
exchange any Notes or portions thereof for a period of fifteen (15) days before
the mailing of a notice of redemption, nor need the Issuer register the
transfer or exchange of any Note selected for redemption in whole or in part.

 

5.             Amendment;
Supplement; Waiver.

 

Subject to certain exceptions, the Notes and the
provisions of the Indenture relating to the Notes may be amended or
supplemented and any existing default or Event of Default or compliance with
certain provisions may be waived with the written consent of the Holders of at
least a majority in aggregate principal amount of all series of Outstanding
Securities (including the Notes) under the Indenture that are affected by such
amendment, supplement or waiver (voting together as a single class).  Without notice to or consent of any Holder,
the parties thereto may amend or supplement the Indenture and the Notes to,
among other things, cure any ambiguity, omission, defect or inconsistency or
comply with any requirements of the Commission in connection with the
qualification of the Indenture under the TIA, or make any other change that
does not adversely affect the rights of any Holder of a Note in any material
respect.

 

6.             Redemption.

 

The Issuer may at its option redeem any of the Notes
in whole or in part at any time, each at a redemption price calculated by the
Issuer equal to the greater of:

 

(i)            100%
of the principal amount of the Notes to be redeemed; and

 

(ii)           the
sum of the present values of the remaining scheduled payments of principal and
interest thereon (not including any portion of such payments of interest
accrued as of the date of redemption), discounted to the date of redemption on
a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate (as defined below) plus 15 basis points, plus in
each case accrued interest thereon to the date of redemption.

 

Notwithstanding the foregoing, installments of
interest on Notes that are due and payable on interest payment dates falling on
or prior to a redemption date

 

11

 

will be payable on the interest payment date
to the registered Holders as of the close of business on the relevant record
date according to the Notes and the Indenture.

 

“Comparable Treasury Issue”
means the United States Treasury security selected by the Quotation Agent as
having a maturity comparable to the remaining term of the Notes to be redeemed
that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the remaining term of the Notes.

 

“Comparable Treasury Price”
means, with respect to any redemption date, (i) the average of four
Reference Treasury Dealer Quotations for such redemption date, after excluding
the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if
the Quotation Agent obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such quotations, or (iii) if only one
Reference Treasury Dealer Quotation is received, such quotation.

 

“Quotation Agent”
means the Reference Treasury Dealer appointed by the Issuer.

 

“Reference Treasury Dealer”
means (i) Banc of America Securities LLC and J.P. Morgan Securities Inc.
(or their respective affiliates that are Primary Treasury Dealers) and their
respective successors; provided, however,
that if any of the foregoing shall cease to be a primary U.S. Government
securities dealer in New York City (a “Primary Treasury Dealer”), the Issuer
will substitute therefor another Primary Treasury Dealer, and (ii) any
other Primary Treasury Dealer selected by the Issuer.

 

“Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Quotation Agent, of
the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to the
Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third business day preceding such redemption date.

 

“Treasury Rate”
means, with respect to any redemption date, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for such
redemption date.

 

Notice of any redemption will be mailed at least 30
days but not more than 60 days before the redemption date to each Holder of the
Notes to be redeemed.  Unless the Issuer
defaults in payment of the redemption price, on and after the redemption date,
interest will cease to accrue on the Notes or portions thereof

 

12

 

called for redemption.  If less than all of the Notes are to be
redeemed, the Notes to be redeemed shall be selected by lot by the Depositary,
in the case of Notes represented by a Global Note, or by the Trustee by a
method the Trustee deems to be fair and appropriate, in the case of Notes that
are not represented by a Global Note.

 

7. Offer to Repurchase Upon Change of Control
Triggering Event.

 

If a Change of Control Triggering Event (as defined
below) occurs, unless the Issuer shall have exercised its right to redeem the
Notes as described above, the Issuer shall be required to make an offer to each
Holder of Notes to purchase all or any part (equal to $2,000 or an integral
multiple of $1,000 in excess thereof) of that Holder’s Notes at a purchase
price in cash equal to 101% of the aggregate principal amount thereof, plus
accrued and unpaid interest, if any, to the date of purchase (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date); provided that after giving effect to
the purchase, any Notes that remain outstanding shall have a denomination of
$2,000 and integral multiples of $1,000 above that amount.

 

Within 30 days following the date upon which the
Change of Control Triggering Event has occurred or, at the Issuer’s option,
prior to any Change of Control (as defined below), but after the public
announcement of the transaction that constitutes or may constitute the Change
of Control, except to the extent that the Issuer shall have exercised its right
to redeem the Notes pursuant to Section 6 hereof the Issuer shall mail a
notice (a “Change of Control Offer”) to each Holder with a copy to the trustee
describing the transaction or transactions that constitute or may constitute a
Change of Control Triggering Event and offering to purchase Notes on the date
specified in the notice, which date will be no earlier than 30 days nor later
than 60 days from the date such notice is mailed (other than as may be required
by law) (such date, the “Change of Control Payment Date”). The notice will, if
mailed prior to the date of consummation of the Change of Control, state that
the Change of Control Offer is conditioned on the Change of Control being
consummated on or prior to the Change of Control Payment Date specified in the
notice.

 

On each Change of Control Payment Date, the Issuer
shall, to the extent lawful:

 

· accept for payment all
Notes or portions of the Notes properly tendered pursuant to the applicable
Change of Control Offer;

 

· deposit with the paying
agent an amount equal to the change of control payment in respect of all Notes
or portions of Notes properly tendered pursuant to the applicable Change of
Control Offer; and

 

13

 

· deliver or cause to be
delivered to the trustee the Notes properly accepted together with an officers’
certificate stating the aggregate principal amount of Notes or portions of
Notes being purchased.

 

The Trustee shall promptly mail, or cause the paying
agent to promptly mail, to each Holder of Notes so tendered the payment for
such Notes, and the Trustee shall promptly authenticate and mail (or cause to
be transferred by book entry) to each holder a new Note equal in principal
amount to any unpurchased portion of the Notes surrendered, if any.

 

The Issuer shall comply, to the extent applicable,
with the requirements of Rule 14(e)-1 of the Exchange Act and any other
securities laws or regulations in connection with the purchase of Notes pursuant
to a Change of Control Triggering Event. To the extent that the provisions of
any securities laws or regulations conflict with the terms described in the
Notes, the Issuer shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations by virtue
thereof.

 

Holders of Notes electing to have Notes purchased
pursuant to a Change of Control Offer will be required to surrender their
Notes, with the form entitled “Repurchase Exercise Notice Upon a Change of
Control” on the reverse of the Note completed, to the paying agent at the
address specified in the notice, or transfer their Notes to the paying agent by
book-entry transfer pursuant to the applicable procedures of the paying agent,
prior to the close of business on the third business day prior to the Change of
Control Payment Date.

 

The Issuer shall not be required to make a Change of
Control Offer if a third party makes such an offer in the manner, at the times
and otherwise in compliance with the requirements for an offer made by the
Issuer and such third party purchases all Notes properly tendered and not
withdrawn under its offer.

 

In addition, the Issuer shall not purchase any Notes
if there has occurred and is continuing on the Change of Control Payment Date
an Event of Default under the Indenture, other than a default in the payment of
the change of control payment upon a Change of Control Triggering Event.

 

If Holders of not less than 95% in aggregate
principal amount of the outstanding Notes validly tender and do not withdraw
such Notes in a Change of Control Offer and the Issuer, or any third party
making a Change of Control Offer in lieu of the Issuer, as described above,
purchases all of the Notes validly tendered and not withdrawn by such Holders,
the Issuer shall have the right, upon not less than 30 nor more than 60 days’
prior notice, given not more than 30 days following such purchase pursuant to
the Change of Control Offer described above, to redeem all Notes that remain
outstanding following such purchase at a redemption price in cash equal to 101%
of the principal amount thereof, plus accrued and unpaid interest, if any, to
the date of redemption (subject to the right

 

14

 

of Holders of record on a record date to
receive interest on the relevant interest payment date).

 

For purposes of the Change of Control Offer
provisions of the Notes, the following definitions are applicable:

 

“Change of Control” means the occurrence of any one
of the following:

 

(a) the direct or indirect sale, lease,
transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or
substantially all of the Issuer’s assets and the assets of the Issuer’s
subsidiaries taken as a whole to any “person” (as that term is used in Section 13(d)(3) of
the Exchange Act) other than to the Issuer or one of its subsidiaries;

 

(b) the consummation of any transaction
(including without limitation, any merger or consolidation) the result of which
is that any “person” (as that term is used in Section 13(d)(3) of the
Exchange Act) becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of
our outstanding Voting Stock, measured by voting power rather than number of
shares;

 

(c) the Issuer consolidates with, or merges
with or into, any person, or any person consolidates with, or merges with or
into, the Issuer, in any such event pursuant to a transaction in which any of
the Issuer’s outstanding Voting Stock or the outstanding Voting Stock of such
other person is converted into or exchanged for cash, securities or other
property, other than any such transaction where the shares of the Issuer’s
Voting Stock outstanding immediately prior to such transaction constitute, or
are converted into or exchanged for, a majority of the Voting Stock of the
surviving person immediately after giving effect to such transaction; or

 

(d) the adoption of a plan relating to the
Issuer’s liquidation or dissolution.

 

Notwithstanding the foregoing, a transaction will
not be considered to be a Change of Control if (a) the Issuer becomes a
direct or indirect wholly owned subsidiary of a holding company and (b) immediately
following that transaction, (1) the direct or indirect holders of the
Voting Stock of the holding company are substantially the same as the holders
of the Issuer’s Voting Stock immediately prior to that transaction or (2) no
person or group is the beneficial owner, directly or indirectly, of more than a
majority of the total voting power of the Voting Stock of the holding company.

 

“Change of Control Triggering Event” means the
occurrence of both a Change of Control and a Ratings Event.

 

15

 

“Investment Grade” means a rating of Baa3 or better
by Moody’s (or its equivalent under any successor rating category of Moody’s);
a rating of BBB- or better by S&P (or its equivalent under any successor
rating category of S&P); and the equivalent investment grade rating from
any replacement Rating Agency or Agencies appointed by the Issuer.

 

“Moody’s” means Moody’s Investors Service, Inc.,
a subsidiary of Moody’s Corporation, and its successors.

 

“Rating Agency” means each of Moody’s and S&P;
provided, that if either of Moody’s or S&P ceases to rate the Notes or
fails to make a rating of the Notes publicly available, the Issuer shall
appoint a replacement for such Rating Agency that is a “nationally recognized
statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under
the Exchange Act.

 

“Ratings Event” means the Notes cease to be rated
Investment Grade by each of the Rating Agencies on any day during the period
(the “Trigger Period”) commencing on the date 60 days prior to the first public
announcement by the Issuer of any Change of Control (or pending Change of
Control) and ending 60 days following consummation of such Change of Control
(which Trigger Period will be extended for so long as the rating of the Notes
is under publicly announced consideration for a possible downgrade by either of
the Rating Agencies).

 

“S&P” means Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc., and its
successors.

 

“Voting Stock” of any specified person as of any
date means the capital stock of such person that is at the time entitled to
vote generally in the election of the board of directors of such person.

 

8.             Defaults
and Remedies.

 

If an Event of Default (other than certain bankruptcy
Events of Default with respect to the Issuer) under the Indenture occurs with
respect to the Notes and is continuing, then the Trustee may and, at the
direction of the Holders of at least 25% in principal amount of the outstanding
Notes, shall by written notice, require the Issuer to repay immediately the
entire principal amount of the Outstanding Notes, together with all accrued and
unpaid interest and premium, if any.  If
a bankruptcy Event of Default with respect to the Issuer occurs and is continuing,
then the entire principal amount of the Outstanding Notes will automatically
become due immediately and payable without any declaration or other act on the
part of the Trustee or any Holder. 
Holders of Notes may not enforce the Indenture or the Notes except as
provided in the Indenture.  The Trustee
is not obligated to enforce the Indenture or the Notes unless it has received
indemnity as it reasonably requires.  The
Indenture permits, subject to

 

16

 

certain limitations therein provided, Holders
of a majority in aggregate principal amount of the Notes then outstanding to
direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from Holders of
Notes notice of certain continuing defaults or Events of Default if it
determines that withholding notice is in their interest.

 

9.             Authentication.

 

This Note shall not be valid until the Trustee
manually signs the certificate of authentication on this Note.

 

10.           Abbreviations
and Defined Terms.

 

Customary abbreviations may be used in the name of a
Holder of a Note or an assignee, such as: TEN COM (= tenants in common), TEN
ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

 

11.           CUSIP
Numbers.

 

Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Issuer has caused
CUSIP numbers to be printed on the Notes as a convenience to the Holders of the
Notes.  No representation is made as to
the accuracy of such numbers as printed on the Notes and reliance may be placed
only on the other identification numbers printed hereon.

 

12.           Governing
Law.

 

The laws of the State of New York shall govern the
Indenture and this Note thereof.

 

17

 

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

I or we assign and transfer this Note to

 

(Print
or type assignee’s name, address and zip code)

 

(Insert
assignee’s soc. sec. or tax I.D. No.)

 

and
irrevocably appoint
                                
agent to transfer this Note on the books of the Issuer.  The agent may substitute another to act for
him.

 

	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   Your Signature:

  	
   

  
	
   

  
	
   

  
	
  Sign
  exactly as your name appears on the other side of this Note.

  
				

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature
  must be guaranteed

  	
   

  	
  Signature

  

 

Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Registrar, which
requirements include membership or participation in the Security Transfer Agent
Medallion Program (“STAMP”) or such
other “signature guarantee program” as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the United
States Securities Exchange Act of 1934, as amended.

 

 

18

 

SCHEDULE OF EXCHANGES OF NOTES

 

The
following exchanges of a part of this Global Note for Physical Notes or a part
of another Global Note have been made:

 

	
  Date
  of Exchange

  	
   

  	
  Amount of decrease

  in principal amount

  of this Global Note

  	
   

  	
  Amount of increase

  in principal amount

  of this Global Note

  	
   

  	
  Principal amount of

  this Global Note

  following such

  decrease (or

  increase)

  	
   

  	
  Signature of

  authorized officer of

  Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

19

 

REPURCHASE
EXERCISE NOTICE UPON A CHANGE OF CONTROL

 

To:
Adobe Systems Incorporated

 

The undersigned registered owner of this
Security hereby acknowledges receipt of a notice from Adobe Systems
Incorporated (the “Issuer”) as to
the occurrence of a Change of Control Triggering Event with respect to the
Issuer and hereby directs the Issuer to pay, or cause the Trustee to pay,                                  
an amount in cash equal to 101% of the aggregate principal amount of the Notes,
or the portion thereof (which is a multiple of $1,000, provided that the
remaining principal amount, if any, following such repurchase shall be at least
$2,000 or a multiple of $1,000 in excess thereof) below designated, to be
repurchased plus interest accrued to, but excluding, the repurchase date,
except as provided in the Indenture.

 

	
   

  	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Principal
  amount to be repurchased (a multiple of $1,000):

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Remaining
  principal amount following such repurchase:

  	
   

  	
   

  
	
   

  	
  (zero or at least $2,000
  or a multiple of $1,000 in excess thereof)

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  	
   

  
									

 

20

 

EXHIBIT B

 

[FORM OF NOTES DUE 2020]

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO.  OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS A BENEFICIAL INTEREST HEREIN.

 

TRANSFERS OF THIS NOTE ARE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE ARE LIMITED
TO TRANSFERS MADE IN ACCORDANCE WITH THE TRANSFER PROVISIONS OF THE INDENTURE.

 

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL
DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE
TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

21

 

ADOBE SYSTEMS INCORPORATED

4.750% Notes due 2020

 

	
  No. 1

  	
   

  	
  CUSIP No.: 00724F AB7

  
	
   

  	
   

  	
  ISIN No.: US00724FAB76

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $900,000,000

  

 

ADOBE SYSTEMS INCORPORATED, a Delaware corporation
(the “Issuer”), for value received promises
to pay to CEDE & CO. or registered assigns the principal sum of NINE
HUNDRED MILLION DOLLARS on February 1, 2020.

 

Interest Payment Dates: February 1 and August 1
(each, an “Interest Payment Date”),
commencing on August 1, 2010.

 

Interest Record Dates: January 15 and July 15
(each, an “Interest Record Date”).

 

Reference is made to the further provisions of this
Note contained herein, which will for all purposes have the same effect as if
set forth at this place.

 

22

 

IN WITNESS WHEREOF, the Issuer has caused this Note
to be signed manually or by facsimile by its duly authorized officer.

 

 

	
   

  	
   

  	
  ADOBE
  SYSTEMS INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  

  	
  Mark
  Garrett

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and 

  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Seal
  of Adobe Systems Incorporated]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:
  

  	
  Stuart
  Fagin

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Associate
  General Counsel and 

  Assistant
  Secretary

  	
   

  	
   

  

 

23

 

This is one of the Notes of the series designated
herein and referred to in the within-mentioned Indenture.

 

Dated:
February 1, 2010

 

	
   

  	
  WELLS
  FARGO BANK,

  NATIONAL ASSOCIATION, 

  
	
   

  	
  as
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   Authorized
  Signatory

  
	
   

  	
   

  	
   

  

 

24

 

(REVERSE OF NOTE)

 

ADOBE SYSTEMS INCORPORATED

4.750% Notes due 2020

 

1.             Interest.

 

Adobe Systems Incorporated (the “Issuer”) promises to pay interest on the principal amount of
this Note at the rate per annum described above.  Cash interest on the Notes will accrue from
the most recent date to which interest has been paid; or, if no interest has
been paid, from February 1, 2010. 
Interest on this Note will be paid to but excluding the relevant
Interest Payment Date.  The Issuer will
pay interest semi-annually in arrears on each Interest Payment Date, commencing
August 1, 2010.  Interest will be
computed on the basis of a 360-day year consisting of twelve 30-day months in a
manner consistent with Rule 11620(b) of the NASD Uniform Practice
Code.

 

The Issuer shall pay interest on overdue principal
from time to time on demand at the rate borne by the Notes and on overdue
installments of interest (without regard to any applicable grace periods) to
the extent lawful.

 

2.             Paying
Agent.

 

Initially, Wells Fargo Bank, National Association
(the “Trustee”) will act as paying
agent.  The Issuer may change any paying
agent without notice to the Holders.

 

3.             Indenture;
Defined Terms.

 

This Note is one of the 4.750% Notes due 2020 (the “Notes”) issued under an indenture dated as of January 25,
2010 (the “Base Indenture”) by and between
the Issuer and the Trustee, and established pursuant to an Officer’s
Certificate dated February 1, 2010, issued pursuant to Section 2.01
and Section 2.03 thereof (together, the “Indenture”).  This Note is a “Security” and the Notes are
“Securities” under the Indenture.

 

For purposes of this Note, unless otherwise defined
herein, capitalized terms herein are used as defined in the Indenture.  The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) (the “TIA”) as in effect on the date on which the Indenture was
qualified under the TIA.  Notwithstanding
anything to the contrary herein, the Notes are subject to all such terms, and
Holders of Notes are referred to the Indenture and the TIA for a statement of
them.  To the extent the terms of the
Indenture and this Note are inconsistent, the terms of the Indenture shall govern.

 

25

 

4.             Denominations; Transfer; Exchange.

 

The Notes are in registered form, without coupons,
in denominations of $2,000 and multiples of $1,000 thereafter.  A Holder shall register the transfer or
exchange of Notes in accordance with the Indenture.  The Issuer may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and to pay
certain transfer taxes or similar governmental charges payable in connection
therewith as permitted by the Indenture. 
The Issuer need not issue, authenticate, register the transfer of or
exchange any Notes or portions thereof for a period of fifteen (15) days before
the mailing of a notice of redemption, nor need the Issuer register the
transfer or exchange of any Note selected for redemption in whole or in part.

 

5.             Amendment;
Supplement; Waiver.

 

Subject to certain exceptions, the Notes and the
provisions of the Indenture relating to the Notes may be amended or
supplemented and any existing default or Event of Default or compliance with
certain provisions may be waived with the written consent of the Holders of at
least a majority in aggregate principal amount of all series of Outstanding
Securities (including the Notes) under the Indenture that are affected by such
amendment, supplement or waiver (voting together as a single class).  Without notice to or consent of any Holder,
the parties thereto may amend or supplement the Indenture and the Notes to,
among other things, cure any ambiguity, omission, defect or inconsistency or
comply with any requirements of the Commission in connection with the
qualification of the Indenture under the TIA, or make any other change that
does not adversely affect the rights of any Holder of a Note in any material
respect.

 

6.             Redemption.

 

The Issuer may at its option redeem any of the Notes
in whole or in part at any time, each at a redemption price calculated by the
Issuer equal to the greater of:

 

(i)            100%
of the principal amount of the Notes to be redeemed; and

 

(ii)           the sum of the present values of the
remaining scheduled payments of principal and interest thereon (not including
any portion of such payments of interest accrued as of the date of redemption),
discounted to the date of redemption on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Treasury Rate (as defined
below) plus 20 basis points, plus in each case accrued interest thereon to the
date of redemption.

 

Notwithstanding the foregoing, installments of
interest on Notes that are due and payable on interest payment dates falling on
or prior to a redemption date 

 

26

 

will be payable on the interest payment date
to the registered Holders as of the close of business on the relevant record
date according to the Notes and the Indenture.

 

“Comparable Treasury Issue”
means the United States Treasury security selected by the Quotation Agent as
having a maturity comparable to the remaining term of the Notes to be redeemed
that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the remaining term of the Notes.

 

“Comparable Treasury Price”
means, with respect to any redemption date, (i) the average of four
Reference Treasury Dealer Quotations for such redemption date, after excluding
the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if
the Quotation Agent obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such quotations, or (iii) if only one
Reference Treasury Dealer Quotation is received, such quotation.

 

“Quotation Agent”
means the Reference Treasury Dealer appointed by the Issuer.

 

“Reference Treasury Dealer”
means (i) Banc of America Securities LLC and J.P. Morgan Securities Inc.
(or their respective affiliates that are Primary Treasury Dealers) and their
respective successors; provided, however,
that if any of the foregoing shall cease to be a primary U.S. Government
securities dealer in New York City (a “Primary Treasury Dealer”), the Issuer
will substitute therefor another Primary Treasury Dealer, and (ii) any
other Primary Treasury Dealer selected by the Issuer.

 

“Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Quotation Agent, of
the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to the
Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third business day preceding such redemption date.

 

“Treasury Rate”
means, with respect to any redemption date, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for such
redemption date.

 

Notice of any redemption will be mailed at least 30
days but not more than 60 days before the redemption date to each Holder of the
Notes to be redeemed.  Unless the Issuer
defaults in payment of the redemption price, on and after the redemption date,
interest will cease to accrue on the Notes or portions thereof 

 

27

 

called for redemption.  If less than all of the Notes are to be
redeemed, the Notes to be redeemed shall be selected by lot by the Depositary,
in the case of Notes represented by a Global Note, or by the Trustee by a
method the Trustee deems to be fair and appropriate, in the case of Notes that
are not represented by a Global Note.

 

7. Offer to Repurchase Upon Change of Control
Triggering Event.

 

If a Change of Control Triggering Event (as defined
below) occurs, unless the Issuer shall have exercised its right to redeem the
Notes as described above, the Issuer shall be required to make an offer to each
Holder of Notes to purchase all or any part (equal to $2,000 or an integral
multiple of $1,000 in excess thereof) of that Holder’s Notes at a purchase
price in cash equal to 101% of the aggregate principal amount thereof, plus
accrued and unpaid interest, if any, to the date of purchase (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date); provided that after giving effect to
the purchase, any Notes that remain outstanding shall have a denomination of
$2,000 and integral multiples of $1,000 above that amount.

 

Within 30 days following the date upon which the
Change of Control Triggering Event has occurred or, at the Issuer’s option,
prior to any Change of Control (as defined below), but after the public
announcement of the transaction that constitutes or may constitute the Change
of Control, except to the extent that the Issuer shall have exercised its right
to redeem the Notes pursuant to Section 6 hereof the Issuer shall mail a
notice (a “Change of Control Offer”) to each Holder with a copy to the trustee
describing the transaction or transactions that constitute or may constitute a
Change of Control Triggering Event and offering to purchase Notes on the date
specified in the notice, which date will be no earlier than 30 days nor later
than 60 days from the date such notice is mailed (other than as may be required
by law) (such date, the “Change of Control Payment Date”). The notice will, if
mailed prior to the date of consummation of the Change of Control, state that
the Change of Control Offer is conditioned on the Change of Control being
consummated on or prior to the Change of Control Payment Date specified in the
notice.

 

On each Change of Control Payment Date, the Issuer
shall, to the extent lawful:

 

· accept for payment all Notes or portions of
the Notes properly tendered pursuant to the applicable Change of Control Offer;

 

· deposit with the paying agent an amount
equal to the change of control payment in respect of all Notes or portions of
Notes properly tendered pursuant to the applicable Change of Control Offer; and

 

28

 

· deliver or cause to be delivered to the
trustee the Notes properly accepted together with an officers’ certificate
stating the aggregate principal amount of Notes or portions of Notes being
purchased.

 

The Trustee shall promptly mail, or cause the paying
agent to promptly mail, to each Holder of Notes so tendered the payment for
such Notes, and the Trustee shall promptly authenticate and mail (or cause to
be transferred by book entry) to each holder a new Note equal in principal
amount to any unpurchased portion of the Notes surrendered, if any.

 

The Issuer shall comply, to the extent applicable,
with the requirements of Rule 14(e)-1 of the Exchange Act and any other
securities laws or regulations in connection with the purchase of Notes
pursuant to a Change of Control Triggering Event. To the extent that the
provisions of any securities laws or regulations conflict with the terms
described in the Notes, the Issuer shall comply with the applicable securities
laws and regulations and shall not be deemed to have breached its obligations
by virtue thereof.

 

Holders of Notes electing to have Notes purchased
pursuant to a Change of Control Offer will be required to surrender their
Notes, with the form entitled “Repurchase Exercise Notice Upon a Change of
Control” on the reverse of the Note completed, to the paying agent at the
address specified in the notice, or transfer their Notes to the paying agent by
book-entry transfer pursuant to the applicable procedures of the paying agent,
prior to the close of business on the third business day prior to the Change of
Control Payment Date.

 

The Issuer shall not be required to make a Change of
Control Offer if a third party makes such an offer in the manner, at the times
and otherwise in compliance with the requirements for an offer made by the
Issuer and such third party purchases all Notes properly tendered and not
withdrawn under its offer.

 

In addition, the Issuer shall not purchase any Notes
if there has occurred and is continuing on the Change of Control Payment Date
an Event of Default under the Indenture, other than a default in the payment of
the change of control payment upon a Change of Control Triggering Event.

 

If Holders of not less than 95% in aggregate
principal amount of the outstanding Notes validly tender and do not withdraw
such Notes in a Change of Control Offer and the Issuer, or any third party
making a Change of Control Offer in lieu of the Issuer, as described above,
purchases all of the Notes validly tendered and not withdrawn by such Holders,
the Issuer shall have the right, upon not less than 30 nor more than 60 days’
prior notice, given not more than 30 days following such purchase pursuant to
the Change of Control Offer described above, to redeem all Notes that remain
outstanding following such purchase at a redemption price in cash equal to 101%
of the principal amount thereof, plus accrued and unpaid interest, if any, to
the date of redemption (subject to the right 

 

29

 

of Holders of record on a record date to
receive interest on the relevant interest payment date).

 

For purposes of the Change of Control Offer
provisions of the Notes, the following definitions are applicable:

 

“Change of Control” means the occurrence of any one
of the following:

 

(a) the direct or indirect sale, lease,
transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or
substantially all of the Issuer’s assets and the assets of the Issuer’s
subsidiaries taken as a whole to any “person” (as that term is used in Section 13(d)(3) of
the Exchange Act) other than to the Issuer or one of its subsidiaries;

 

(b) the consummation of any transaction
(including without limitation, any merger or consolidation) the result of which
is that any “person” (as that term is used in Section 13(d)(3) of the
Exchange Act) becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of
our outstanding Voting Stock, measured by voting power rather than number of
shares;

 

(c) the Issuer consolidates with, or merges
with or into, any person, or any person consolidates with, or merges with or
into, the Issuer, in any such event pursuant to a transaction in which any of
the Issuer’s outstanding Voting Stock or the outstanding Voting Stock of such
other person is converted into or exchanged for cash, securities or other
property, other than any such transaction where the shares of the Issuer’s
Voting Stock outstanding immediately prior to such transaction constitute, or
are converted into or exchanged for, a majority of the Voting Stock of the
surviving person immediately after giving effect to such transaction; or

 

(d) the adoption of a plan relating to the
Issuer’s liquidation or dissolution.

 

Notwithstanding the foregoing, a transaction will
not be considered to be a Change of Control if (a) the Issuer becomes a
direct or indirect wholly owned subsidiary of a holding company and (b) immediately
following that transaction, (1) the direct or indirect holders of the
Voting Stock of the holding company are substantially the same as the holders
of the Issuer’s Voting Stock immediately prior to that transaction or (2) no
person or group is the beneficial owner, directly or indirectly, of more than a
majority of the total voting power of the Voting Stock of the holding company.

 

“Change of Control Triggering Event” means the
occurrence of both a Change of Control and a Ratings Event.

 

30

 

“Investment Grade” means a rating of Baa3 or better
by Moody’s (or its equivalent under any successor rating category of Moody’s);
a rating of BBB- or better by S&P (or its equivalent under any successor
rating category of S&P); and the equivalent investment grade rating from
any replacement Rating Agency or Agencies appointed by the Issuer.

 

“Moody’s” means Moody’s Investors Service, Inc.,
a subsidiary of Moody’s Corporation, and its successors.

 

“Rating Agency” means each of Moody’s and S&P;
provided, that if either of Moody’s or S&P ceases to rate the Notes or
fails to make a rating of the Notes publicly available, the Issuer shall
appoint a replacement for such Rating Agency that is a “nationally recognized
statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under
the Exchange Act.

 

“Ratings Event” means the Notes cease to be rated
Investment Grade by each of the Rating Agencies on any day during the period
(the “Trigger Period”) commencing on the date 60 days prior to the first public
announcement by the Issuer of any Change of Control (or pending Change of
Control) and ending 60 days following consummation of such Change of Control
(which Trigger Period will be extended for so long as the rating of the Notes
is under publicly announced consideration for a possible downgrade by either of
the Rating Agencies).

 

“S&P” means Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc., and its
successors.

 

“Voting Stock” of any specified person as of any
date means the capital stock of such person that is at the time entitled to
vote generally in the election of the board of directors of such person.

 

8.             Defaults
and Remedies.

 

If an Event of Default (other than certain
bankruptcy Events of Default with respect to the Issuer) under the Indenture
occurs with respect to the Notes and is continuing, then the Trustee may and,
at the direction of the Holders of at least 25% in principal amount of the
outstanding Notes, shall by written notice, require the Issuer to repay
immediately the entire principal amount of the Outstanding Notes, together with
all accrued and unpaid interest and premium, if any.  If a bankruptcy Event of Default with respect
to the Issuer occurs and is continuing, then the entire principal amount of the
Outstanding Notes will automatically become due immediately and payable without
any declaration or other act on the part of the Trustee or any Holder.  Holders of Notes may not enforce the
Indenture or the Notes except as provided in the Indenture.  The Trustee is not obligated to enforce the
Indenture or the Notes unless it has received indemnity as it reasonably
requires.  The Indenture permits, subject
to 

 

31

 

certain limitations therein provided, Holders
of a majority in aggregate principal amount of the Notes then outstanding to
direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from Holders of
Notes notice of certain continuing defaults or Events of Default if it
determines that withholding notice is in their interest.

 

9.             Authentication.

 

This Note shall not be valid until the Trustee
manually signs the certificate of authentication on this Note.

 

10.           Abbreviations
and Defined Terms.

 

Customary abbreviations may be used in the name of a
Holder of a Note or an assignee, such as: TEN COM (= tenants in common), TEN
ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

 

11.           CUSIP
Numbers.

 

Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Issuer has caused
CUSIP numbers to be printed on the Notes as a convenience to the Holders of the
Notes.  No representation is made as to
the accuracy of such numbers as printed on the Notes and reliance may be placed
only on the other identification numbers printed hereon.

 

12.           Governing
Law.

 

The laws of the State of New York shall govern the
Indenture and this Note thereof.

 

32

 

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

I or we assign and transfer this Note to

 

(Print
or type assignee’s name, address and zip code)

 

(Insert
assignee’s soc. sec. or tax I.D. No.)

 

and
irrevocably appoint
                                
agent to transfer this Note on the books of the Issuer.  The agent may substitute another to act for
him.

 

	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:
  

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  

 

	
   

  
	
  Sign
  exactly as your name appears on the other side of this Note.

  

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature
  must be guaranteed

  	
   

  	
  Signature

  

 

 

Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Registrar, which
requirements include membership or participation in the Security Transfer Agent
Medallion Program (“STAMP”) or such
other “signature guarantee program” as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the United
States Securities Exchange Act of 1934, as amended.

 

 

33

 

SCHEDULE OF EXCHANGES OF NOTES

 

The
following exchanges of a part of this Global Note for Physical Notes or a part
of another Global Note have been made:

 

	
  Date
  of Exchange

  	
   

  	
  Amount of decrease

  in principal amount 

  of this Global Note

  	
   

  	
  Amount of increase

  in principal amount

  of this Global Note

  	
   

  	
  Principal amount of

  this Global Note

  following such

  decrease (or

  increase)

  	
   

  	
  Signature of

  authorized officer of

  Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

34

 

REPURCHASE
EXERCISE NOTICE UPON A CHANGE OF CONTROL

 

To:
Adobe Systems Incorporated

 

The undersigned registered owner of this Security
hereby acknowledges receipt of a notice from Adobe Systems Incorporated (the “Issuer”) as to the occurrence of a Change
of Control Triggering Event with respect to the Issuer and hereby directs the
Issuer to pay, or cause the Trustee to pay,                                  
an amount in cash equal to 101% of the aggregate principal amount of the Notes,
or the portion thereof (which is a multiple of $1,000, provided that the
remaining principal amount, if any, following such repurchase shall be at least
$2,000 or a multiple of $1,000 in excess thereof) below designated, to be
repurchased plus interest accrued to, but excluding, the repurchase date,
except as provided in the Indenture.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  

 

	
  Principal
  amount to be repurchased (a multiple of $1,000):

  	
   

  	
   

  
	
   

  
	
  Remaining
  principal amount following such repurchase:

  	
   

  	
   

  
	
  (zero or at least $2,000 or a multiple of $1,000 in excess thereof)

  
					

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  

 

35

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