| | Exhibit
10.3 | 
| | ------------ | 

BORLAND SOFTWARE CORPORATION

INCENTIVE COMPENSATION PLAN FOR CHIEF EXECUTIVE OFFICER

| | I. | PURPOSE
OF THE PLAN | 
| | -- | ------------------- | 

| | This
Incentive Compensation Plan is intended to promote the interests of Borland Software
Corporation, a Delaware corporation (the Corporation), by providing the
Corporations Chief Executive Officer with the opportunity to participate in a cash
bonus program tied to the attainment of corporate performance objectives which will
provide him with a meaningful incentive to remain in the Corporations employ and
contribute to the Corporations financial success. | 
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | II. | DEFINITIONS | 
| | --- | ----------- | 

| | Actual
Bonus shall mean the bonus actually earned by the Chief Executive Officer
for the Year in question. | 
| | ---------------------------------------------------------------------------------------------------------- | 

| | Base
Salaryshall mean the annual rate of base salary in effect for the Chief Executive
Officer at the start of each Year in which he participates in the Plan, including any
adjustment to his Base Salary during the course of that Year which is made retroactive to
the start date of such Year; provided, however, for the 2003 Year, the Base Salary shall
be equal to the Base Salary effective as of July 1, 2003. Base Salary shall be calculated
before deduction of (i) any income or employment tax withholdings, (ii) any contributions
made by the Chief Executive Officer to any Code Section 401(k) salary deferral plan or
Code Section 125 cafeteria benefit plan now or hereafter established by the Corporation,
(iii) any contributions made by the Chief Executive Officer to the Corporations
Employee Stock Purchase Plan or (iv) any deferral of such Base Salary to a later Year
pursuant to the Chief Executive Officers election under any deferred compensation
plan or program in which he now or hereafter participates. Base Salary which is deferred
to a later Year shall not be taken into account in the Year in which such deferred amount
is actually paid. The following items of compensation shall not be included in Base
Salary: (i) all overtime payments, bonuses, commissions, profit-sharing distributions and
other incentive-type payments, including cash bonuses received under this Plan, (ii) the
matching contributions or deferred profit-sharing contributions made by the Corporation
under any Code Section 401(a) or 401(k) plan now or hereafter established, (iii) any and
all other contributions (other than Internal Revenue Code Section 401(k) or Section 125
contributions or any contributions to the Corporations Employee Stock Purchase Plan)
made on the Participants behalf by the Corporation under any employee benefit or
welfare plan now or hereafter established and (iv) any earnings or other investment return
credited to any deferred compensation account now or hereafter maintained for the Chief
Executive Officer. | 
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Board
shall mean the Corporations Board of Directors. | 
| | ------------------------------------------------------ | 

| | Code
shall mean the Internal Revenue Code of 1986, as amended from time to time. | 
| | -------------------------------------------------------------------------------- | 

| | Corporate
Performance Objectives shall mean the financial or other performance
milestones the Corporation must attain as a condition to the Chief Executive
Officers entitlement to all or a portion of his Target Bonus for the applicable
Year. | 
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Disability
shall mean the inability of the Chief Executive Officer to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment
expected to result in death or expected to continue for a period of twelve (12)
consecutive months or more. | 
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Earn-Out
Dateshall mean the last business day of each Year and shall be the date on which
the Chief Executive Officers entitlement (if any) to a payout of his Actual Bonus
for that Year shall first accrue. | 
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Operating
Income shall mean the Corporations pro-forma operating income from
operations for each Year the Plan remains in effect as published in the Corporations
Annual Report on Form 10K. | 
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Plan
shall mean this Borland Software Corporation Incentive Compensation Plan for the Chief
Executive Officer, as amended from time to time. | 
| | -------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Plan
Administrator shall mean the Compensation Committee of the Board in its
capacity as administrator of the Plan. | 
| | ------------------------------------------------------------------------------------------------------------------- | 

| | Revenue
shall mean the Corporations total revenues as published in the Corporations
Annual Report on Form 10K. | 
| | ---------------------------------------------------------------------------------------------------------------- | 

| | Target
Bonusshall mean the bonus opportunity provided the Chief Executive Officer
for each Year the Plan remains in effect. The Target Bonus shall be stated in terms of a
specific percentage of the Chief Executive Officers Base Salary and shall be earned
for each Year of participation in the Plan on the basis of the Corporations
achievement of the Corporation Performance Objectives established for that Year. | 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Year
shall mean each fiscal year of the Corporation for which the Plan remains in effect. | 
| | ----------------------------------------------------------------------------------------- | 

| | III. | ADMINISTRATION
OF THE PLAN | 
| | ---- | -------------------------- | 

| | The
Compensation Committee as Plan Administrator shall have full power and authority (subject
to the provisions of the Plan) to establish such rules and regulations as it may deem
appropriate for proper plan administration and to make such determinations under, and
issue such interpretations of, the Plan as it may deem advisable. Decisions of the Plan
Administrator shall be final and binding on all parties with an interest in the Plan. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | IV. | DETERMINATION OF
TARGET BONUS | 
| | --- | ----------------------------- | 

| |  | A.  
The annual Target Bonus for the Chief Executive Officer shall be tied to the
Corporations attainment of the Operating Income and Revenue objectives
established as the Corporate Performance Objectives for that Year based upon the
Board-approved business plan for such Year. The actual Corporate Performance
Objectives shall be established by the Plan Administrator within forty-five (45)
days after the start of the Year (within 45 days of Board approval for the 2003
Year). However, the Plan Administrator shall have the discretionary authority to
adjust one or more of the established Corporate Performance Objectives during
the course of the Year should the Plan Administrator determine, in its sole
discretion, that extraordinary or unexpected events require such adjustments in
order to maintain the objectives and purposes of the Plan. | 
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 

| |  | B.  
The Target Bonus for the Year shall be divided into two components: one tied to
the Operating Income goals established for the Year, and the other tied to the
Revenue objectives for such Year. The percentage of the Target Bonus allocated
to each component shall be determined by the Plan Administrator within
forty-five (45) days after the start of the Year in question (within 45 days of
Board approval for the 2003 Year). | 
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| |  | C.  
The Plan Administrator shall also, within forty-five (45) days after the start
of each Year (within 45 days of Board approval for the 2003 Year), set the
Target Bonus for that Year at a percentage of the Chief Executive Officers
Base Salary for such Year. The percentage may range from a low of fifty percent
(50%) to a high of one hundred percent (100%). However, the dollar amount of the
Actual Bonus payable to the Chief Executive Officer may be equal to or higher or
lower than the percentage of Base Salary set as his Target Bonus for the Year
and shall be dependent upon the Corporations success in attaining the
Operating Income and Revenue components of the Target Bonus for that Year. | 
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | V. | DETERMINATION
OF ACTUAL BONUS | 
| | -- | ----------------------------- | 

| |  | A.  
The Plan Administrator shall determine within the first forty-five (45) days
after the start of the Year (within 45 days of Board approval for the 2003
Year), (i) the algorithm for measuring the attainment of the Operating Income
goals and Revenue goals for the Year, (ii) the minimum percentage of each of the
Operating Income and Revenue components for the Year which must be attained in
order for the Chief Executive Officer to earn an Actual Bonus for such Year, and
(iii) the maximum percentage attainment of each of the Operating Income and
Revenue components for the Year which will be taken into account for the
purposes of determining the Chief Executive Officers Actual Bonus for that
Year. In the event the actual Revenue or Operating Income results for the Year
are between the goals established by the Plan Administrator, then the percentage
of the Target Bonus to be paid out as the Actual Bonus for that Year will be
calculated on a linear basis between the relevant goals. | 
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| |  | B.  
In the event the Corporation does not meet the minimum Operating Income goal for
the Year, then no part of the Target Bonus, whether the Operating Income or
Revenue component, will be paid. | 
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| |  | C.  
In no event may the Actual Bonus for any Year exceed two hundred percent (200%)
of the Base Salary in effect for the Chief Executive Officer for that Year. | 
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | VI. | ELIGIBILITY
FOR ACTUAL BONUS AND PAYOUT | 
| | --- | --------------------------------------- | 

| |  | A.  
The Chief Executive Officer shall not earn or otherwise become entitled to any
Actual Bonus for a particular Year unless he continues in the Corporations
employ through the Earn-Out Date for that Year. However, should the Chief
Executive Officer cease employee status before the Earn-Out Date in a particular
Year by reason of death or Disability, then the Actual Bonus he would have
otherwise earned for that Year based on the actual percentage attainment of the
Corporate Performance Goals for that Year shall be prorated, and he (or his
estate) shall accordingly receive a dollar amount equal to such Actual Bonus
multiplied by a fraction, the number of which is the number of days in that Year
which elapse prior to the date of the Chief Executive Officers death or
Disability and the denominator of which is 365. | 
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| |  | B.  
Payment of the Actual Bonus shall be made within the later of: ninety (90) days
after the close of the Year for which that Actual Bonus is earned or fifteen
(15) days following the filing of the Corporations Annual Report on Form
10K for the particular Year. | 
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 

| |  | C.  
Payment of the Actual Bonus shall be subject to the collection by the
Corporation of all applicable federal, state and local income and employment
taxes, and the Chief Executive Officer shall only be paid the amount which
remains after the collection of those taxes. | 
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | VII. | PLAN
DURATION AND AMENDMENT | 
| | ---- | --------------------------- | 

| | The
Plan shall be in effect as of July 1, 2003 and for each subsequent fiscal year of the
Corporation until the Plan Administrator by appropriate resolution terminates the Plan. No
rights to receive an Actual Bonus for a particular Year for which the Plan is outstanding
shall accrue until the Earn-Out Date for that Year. Accordingly, the Plan Administrator,
in its sole discretion, may amend or terminate the Plan at any time prior to the Earn-Out
Date in effect for a particular Year, and any such amendment or termination shall be
applicable for that Year and for each subsequent Year. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | VIII. | NON-TRANSFERABILITY | 
| | ----- | ------------------- | 

| | The
right to receive an Actual Bonus under the Plan may not be transferred, assigned, pledged
or encumbered. Should the Chief Executive Officer die before receipt of any Actual Bonus
to which he becomes entitled under the Plan, then that bonus shall be paid to his estate. | 
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | IX. | OTHER
INCENTIVE PLANS | 
| | --- | --------------------- | 

| | The
Plan shall, effective with the 2003 Year, replace all other existing cash incentive or
bonus plans for the Chief Executive Officer. Accordingly, as a condition to the
participation of Mr. Dale L. Fuller in the Plan in his capacity as the Chief Executive
Officer, he must execute and deliver to the Corporation a modification to his existing
Employment Agreement with the Corporation dated as of January 1, 2001 in which he agrees
that his entitlement to incentive compensation each Year shall be governed solely by the
terms of the Plan and that he shall no longer have any right to receive any other
incentive compensation pursuant to the bonus provisions of such Employment Agreement. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 

| | X. | NO
EMPLOYMENT RIGHTS | 
| | -- | -------------------- | 

| | Nothing
in the Plan shall confer upon the Chief Executive Officer any right to continue in the
Corporations employ for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Corporation or of the Chief Executive
Officer, which rights are hereby expressly reserved by each, to terminate the Chief
Executive Officers employment at any time for any reason, with or without cause. | 
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | XI. | GOVERNING
LAW | 
| | --- | ------------- | 

| | The
provisions of the Plan shall be governed by and construed in accordance with the laws of
the State of California without resort to that States conflict-of-laws rules. | 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | IN
WITNESS WHEREOF,Borland Software Corporation has caused this instrument to be
executed on by its behalf by it duly-authorized officer as of the ____ day of _________,
2003. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | BORLAND
SOFTWARE CORPORATION | 
| | ---------------------------- | 

| | By: __________________________________ | 
| | -------------------------------------- | 

| | Title:
 _________________________________ | 
| | ----------------------------------------- |