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                                                                    EXHIBIT 10.8

                                                                    ANNUAL GRANT

                      NON-QUALIFIED STOCK OPTION AGREEMENT
                           FOR NON-EMPLOYEE DIRECTORS
                     UNDER THE PROGRESS SOFTWARE CORPORATION
                            1997 STOCK INCENTIVE PLAN

Name of Optionee: __________

No. of Option Shares: __________

Option Exercise Price per Share: $__________

Grant Date: __________

Expiration Date: __________

     Pursuant to the Progress Software Corporation 1997 Stock Incentive Plan as
amended through the date hereof (the "Plan"), Progress Software Corporation (the
"Company") hereby grants to the Optionee named above, who is a Director of the
Company, an option (the "Stock Option") to purchase on or prior to the
Expiration Date specified above all or part of the number of shares of Common
Stock, par value $.01 per share, of the Company (the "Stock") at the Option
Exercise Price per share specified above subject to the terms and conditions set
forth herein and in the Plan. This Stock Option is not intended to be an
"incentive stock option" under Section 422 of the Internal Revenue Code of 1986,
as amended.

     1. Exercisability. This Stock Option shall be immediately exercisable in
full on the Grant Date.

     2. Manner of Exercise.

          (a) From time to time on or prior to the Expiration Date, the Optionee
may give written notice to the Administrator of his or her election to purchase
some or all of the Option Shares purchasable at the time of such notice. This
notice shall specify the number of Option Shares to be purchased.

     Payment of the purchase price for the Option Shares may be made by check or
any other form of payment that is permitted by Section 5(a)(iv) of the Plan.

          (b) The shares of Stock purchased upon exercise of this Stock Option
shall be transferred to the Optionee on the records of the Company or of the
transfer agent upon compliance to the satisfaction of the Administrator with all
requirements under applicable laws or regulations in connection with such
transfer and with the requirements hereof and of the Plan. The determination of
the Administrator as to such compliance shall be final and binding on the

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Optionee. The Optionee shall not be deemed to be the holder of, or to have any
of the rights of a holder with respect to, any shares of Stock subject to this
Stock Option unless and until this Stock Option shall have been exercised
pursuant to the terms hereof, the Company or the transfer agent shall have
transferred the shares to the Optionee, and the Optionee's name shall have been
entered as the stockholder of record on the books of the Company. Thereupon, the
Optionee shall have full voting, dividend and other ownership rights with
respect to such shares of Stock.

          (c) Notwithstanding any other provision hereof or of the Plan, no
portion of this Stock Option shall be exercisable after the Expiration Date
hereof.

     3. Termination as Director. If the Optionee ceases to be a Director of the
Company, the period within which to exercise the Stock Option may be subject to
earlier termination as set forth below:

          (a) Termination by Reason of Death. If the Optionee ceases to be a
Director by reason of the Optionee's death, any portion of this Stock Option
outstanding on such date may be exercised by his or her legal representative or
legatee for a period of 24 months from the date of cessation of service as a
Director or until the Expiration Date, if earlier.

          (b) Termination by Reason of Cause If the Optionee ceases to be a
Director by reason of the Optionee's termination of service for Cause (as
defined in the Plan), no portion of this Stock Option may be exercised after the
last day of service as a Director.

          (c) Termination by Reason of Disability If the Optionee ceases to be a
Director by reason of the Optionee's Disability (as defined in the Plan), any
portion of this Stock Option outstanding on such date, may be exercised by the
Optionee for a period of 12 months from the date of cessessation as a Dirertor
or until the Expiration Date, if earlier.

          (d) Other Termination. If the Optionee ceases to be a Director for any
reason other than the Optionee's death or termination for Cause or Disability,
any portion of this Stock Option outstanding on such date may be exercised for a
period of 90 days from the date of cessation of services as a Director or 30
days after the end of the blackout period, if later; provided, however, that
this Stock Option shall nevertheless expire on the Expiration Date, if earlier.

     4. Incorporation of Plan. Notwithstanding anything herein to the contrary,
this Stock Option shall be subject to and governed by all the terms and
conditions of the Plan, including the powers of the Administrator set forth in
Section 2(b) of the Plan. Capitalized terms in this Agreement shall have the
meaning specified in the Plan, unless a different meaning is specified herein.

     5. Transferability. This Agreement is personal to the Optionee, is
non-assignable and is not transferable in any manner, by operation of law or
otherwise, other than by will or the laws of descent and distribution; provided,
however, that with the consent of the Administrator, this Stock Option may be
transferred, without payment of consideration, to a member of the Optionee's
immediate family or to a trust or partnership whose beneficiaries are members of
the Optionee's immediate family.

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     6. No Obligation to Continue as a Director. Neither the Plan nor this Stock
Option confers upon the Optionee any rights with respect to continuance as a
Director.

     7. Notices. Notices hereunder shall be mailed or delivered to the Company
at its principal place of business and shall be mailed or delivered to the
Optionee at the address on file with the Company or, in either case, at such
other address as one party may subsequently furnish to the other party in
writing.

                                        PROGRESS SOFTWARE CORPORATION

                                        By:
                                            ------------------------------------
                                        Title:
                                               ---------------------------------

     The foregoing Agreement is hereby accepted and the terms and conditions
thereof hereby agreed to by the undersigned.

Dated:
       -------------------              ----------------------------------------
                                        Optionee's Signature<PAGE>

March 29, 2007

Progress Software Corporation
14 Oak Park
Bedford, MA 01730

     Re: Cancellation of Stock Options

Gentlemen:

     I hereby acknowledge that the options previously granted to me and listed
in the following table have not been validly issued under the terms of the
Company's 1997 Stock Incentive Plan.

<TABLE>
<CAPTION>
Grant Date   Shares Granted   Grant Price
----------   --------------   -----------
<S>          <C>              <C>
 11/11/03         9,000          $21.86
  5/24/04        11,500          $18.15
  9/27/04        11,500          $19.25
 11/15/05        12,000          $30.81
  5/22/06        11,750          $23.07
  9/20/06        11,750          $25.01
</TABLE>

In order to correct this issue, I and the Company agree as follows:

     -    With respect to the 5/24/04 and 9/27/04 options listed above, it is
          understood that this letter agreement amends the Option Amendment
          Agreement dated December 15, 2006 ("Option Amendment Agreement") I
          entered into with the Company in the following respects. First, the
          5/24/04 and 9/27/04 options should not have been included in the
          Option Amendment Agreement. Second, the total Payment Amount and Value
          Lost plus Payment Amount listed on Exhibit A thereto should be reduced
          from $135,270 to $103,070. Since the Option Amendment Agreement
          required me to compensate the Company on an after-tax basis, the
          amount that I was required to compensate the Company should have been
          $59,018 instead of $77,458. Accordingly, I overcompensated the Company
          by $18,440. Since I transferred 2,706 shares (at FMV $28.62) to the
          Company in March 2007 in order to fulfill the obligations of the
          Option Amendment Agreement, I effectively transferred 644 more shares
          than necessary. For purposes of this agreement, these transferred
          shares are considered a sale of the stock.

     -    As the 11/15/05, 5/22/06 and 9/20/06 options listed above are
          outstanding, vested and have not been exercised, they are hereby
          cancelled.

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     -    With respect to the 11/13/03, 5/24/04 and 9/27/04 options that I
          exercised and sold on 10/13/05, I agree to return to the Company the
          after-tax profit calculated as follows.

<TABLE>
<CAPTION>
 Option    Exercised   Shares   Price    Option Cost   Ex FMV    Profit
 ------    ---------   ------   -----    -----------   ------   --------
<S>        <C>         <C>      <C>      <C>           <C>      <C>
11/11/03    10/12/05    2,062   $21.86     $ 45,075    $30.06   $ 16,908
 5/24/04    10/13/05    4,000   $18.15     $ 72,600    $30.25   $ 48,400
 5/24/04    10/13/05    7,500   $18.15     $136,125    $29.91   $ 88,200
 9/27/04    10/13/05   11,500   $19.25     $221,375    $29.91   $122,590

                                                Total Profit:   $276,098
                                                   After Tax:   $158,099
</TABLE>

     -    With respect to the 9,000 shares that I acquired on 10/12/05 when I
          exercised my 11/11/03 option and still hold (counting for this purpose
          the 644 shares that I already transferred to the Company), I
          understand I need to transfer all those shares to the Company. The
          number of shares to be transferred is thus 9,000 less 2,706 shares
          returned in March 2007 to fulfill the re-pricing obligation or 6,294
          shares. This transfer has been recently initiated with the holding
          broker. However, the effective number of shares transferred is 9,000
          less 2,062 (the corrected number of shares from the Option Amendment
          Agreement) or 6,938 shares. In consideration of this transfer, the
          Company agrees to return to me option exercise price for the effective
          number of shares. This amount is: 6,938 shares X $21.86 or $151,665.

     -    The net sum I owe the Company at this point is $158,099 minus $151,655
          or $6,444. This sum is due and owing but will be netted against the
          keep-whole compensation proposed by the Board - noted below.

     -    The Company will prepare the proper Form 4s and other documentation
          necessary to reflect this transfer of shares and cancellation of
          options.

     -    The Board of Directors has committed to make me whole for my now lost
          2003 thru 2006 compensation as a result of these invalidly granted
          options.

                                        Very truly yours,

                                        /s/ ROGER J. HEINEN, JR.
                                        ----------------------------------------
                                        Roger J. Heinen, Jr.

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