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Exhibit 10.26  

 
 

BLADELOGIC, INC.
  SENIOR EXECUTIVE INCENTIVE BONUS PLAN    
    

        1.    Purpose    

        This
Senior Executive Incentive Bonus Plan (the "Incentive Plan") is intended to provide an incentive for superior work and to motivate eligible executives of BladeLogic, Inc.
(the "Company") and its subsidiaries toward even higher achievement and business results, to tie their goals and interests to those of the Company and its stockholders and to enable the Company to
attract and retain highly qualified executives. The Incentive Plan is for the benefit of Covered Executives (as defined below). 

        2.    Covered Executives    

        From
time to time, the Compensation Committee of the Board of Directors of the Company (the "Compensation Committee") may select certain key executives (the "Covered Executives") to be
eligible to receive cash bonuses and stock options hereunder. 

        3.    Administration    

        The
Compensation Committee shall have the sole discretion and authority to administer and interpret the Incentive Plan. 

        4.    Bonus Determinations    

        (a)   A
Covered Executive may receive a bonus payment or stock option grant under the Incentive Plan based upon the attainment of performance targets which are established by
the Compensation Committee and relate to financial measures with respect to the Company or any of its subsidiaries, as well as individual performance goals (collectively, the "Performance Goals"), as
set forth in Exhibit A attached hereto. 

        (b)   Except
as otherwise set forth in this Section 4(b): (i) any bonuses paid or stock options granted to Covered Executives under the Incentive Plan shall be
based upon pre-determined formulas that tie such bonuses or stock option grants to one or more performance targets relating to the Performance Goals, (ii) bonus and stock option
grant formulas for Covered Executives shall be adopted in each performance period by the Compensation Committee, and (iii) no bonuses shall be paid or stock options granted to Covered
Executives unless and until the Compensation Committee makes a determination with respect to the attainment of the performance objectives. Notwithstanding the foregoing, the Company may pay bonuses or
grant stock options (including, without limitation, discretionary bonuses) to Covered Executives under the Incentive Plan based upon such other terms and conditions as the Compensation Committee may
in its sole discretion determine. 

        (c)   Each
Covered Executive shall have a targeted bonus opportunity for each performance period, which opportunity shall be a stated percentage of base salary, as determined
in the sole discretion of the Compensation Committee. The maximum bonus payable to a Covered Executive under the Plan is described in Exhibit A
attached hereto. 

        (d)   Each
Covered Executive shall have a targeted stock option grant opportunity for each performance period, as determined in the sole discretion of the Compensation
Committee. The maximum stock option grant opportunity for a Covered Executive under the Plan is described in Exhibit A attached hereto. 

        (e)   The
payment of a bonus or grant of a stock option to a Covered Executive with respect to a performance period shall be conditioned upon the Covered Executive's
employment by the Company on the last day of the performance period; provided, however, that the Compensation Committee may make exceptions to this
requirement, in its sole discretion, including, without limitation, in the case of a Covered Executive's termination of employment, retirement, death or disability. 

 

        5.    Timing of Payment or Grant    

        The
Performance Goals will be measured at the end of each fiscal year after the completion of the Company's annual audit of its financial statements. If the Performance Goals are met,
payments and grants will be made within 30 days thereafter, but not later than January 31. Notwithstanding the foregoing, the Company may pay bonuses or grant stock options to Covered
Executives under the Incentive Plan at any time, as the Compensation Committee may in its sole discretion determine. 

        6.    Amendment and Termination    

        The
Company reserves the right to amend or terminate the Incentive Plan at any time in its sole discretion. 

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EXHIBIT "A"
    
    
    PERFORMANCE GOALS    
    

        President and Chief Executive Officer:    Cash Bonus—no minimum, target of 100% and maximum of 125% of base
salary—80% of which will be based on the Company's performance against recognized revenue goals of the Company as determined by the Board, and 20% of which will be based on the Company's
performance against EBIT (earnings before interest and taxes) goals of the Company as determined by the Board. Equity Bonus—no minimum, target of 100,000 options and maximum of 150,000
options—100% of which will be based on the Company's performance against recognized revenue goals of the Company as determined by the Board. 

        Senior Vice President and Chief Technology Officer:    Cash Bonus—no minimum, target of 90% and maximum of 120% of
base salary—80% of which will be based on the Company's performance against recognized revenue goals of the Company as determined by the Board, and 20% of which will be based on the
Company's performance against EBIT goals of the Company as determined by the Board. Equity Bonus—no minimum, target of 100,000 options and
maximum of 150,000 options—100% of which will be based on the Company's performance against recognized revenue goals of the Company as determined by the Board. 

        Senior Vice President and Chief Financial Officer:    Cash Bonus—no minimum, target of 50% and maximum of 75% of
base salary—30% of which will be based on the Company's performance against recognized revenue goals of the Company as determined by the Board, 40% of which will be based on the Company's
performance against EBIT goals of the Company as determined by the Board and 30% of which shall be discretionary. Equity Bonus—no minimum, target of 80,000 options and maximum of 120,000
options—100% of which will be based on the Company's performance against recognized revenue goals of the Company as determined by the Board. 

        Senior Vice President, Worldwide Sales and Customer Services:    Cash Bonus—no minimum, target of 130% of base
salary and no maximum—100% of which will be based on the Company's performance against recognized revenue goals of the Company as determined by the Board. Equity Bonus—no
minimum, target of 100,000 options and maximum of 150,000 options—100% of which will be based on the Company's performance against recognized revenue goals of the Company as determined by
the Board. 

        Vice President, Research and Development:    Cash Bonus—no minimum, target of 50% and maximum of 75% of base
salary—40% of which will be based on the Company's performance against recognized revenue goals of the Company as determined by the Board, 10% of which will be based on the Company's
performance against EBIT goals of the Company as determined by the Board and 50% of which shall be discretionary. Equity Bonus—no minimum, target of 60,000 options and maximum of 90,000
options—100% of which will be based on the Company's performance against recognized revenue goals of the Company as determined by the Board. 

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BLADELOGIC, INC. SENIOR EXECUTIVE INCENTIVE BONUS PLAN

EXHIBIT "A" PERFORMANCE GOALSQuickLinks
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Exhibit 10.27  

 
 

BladeLogic, Inc.
  Series A Preferred Stock Redemption Agreement    
    

        THIS SERIES A PREFERRED STOCK REDEMPTION AGREEMENT (the "Redemption Agreement") is made this 12th day of June, 2007 by and among
(i) BladeLogic, Inc., a Delaware corporation (the "Company") and (ii) the parties named as Investors in that certain Common Stock
and Series A Preferred Stock Purchase Agreement dated as of September 6, 2001 (collectively, the "Investors"). Capitalized terms not otherwise defined herein shall have the meanings
ascribed to such terms in the Seventh Amended and Restated Certificate of Incorporation of the Company filed December 4, 2006 with the Secretary of State of the State of Delaware, as amended to
date (the "Certificate of Incorporation"). 

        WHEREAS,
the Company has filed a registration statement on Form S-1 (as amended from time to time, the "Registration
Statement") with the Securities and Exchange Commission to effect a firmly underwritten, registered initial public offering (the
"IPO") of common stock, par value $.001 per share, of the Company (the "Common Stock"); 

        WHEREAS,
pursuant to the terms of the Certificate of Incorporation, if requested in writing by the holders of two-thirds of the then outstanding shares of Series A
Preferred Stock, par value $.001 per share (the "Series A Preferred Stock"), the Company shall redeem all outstanding shares of Series A Preferred Stock at a price per share equal to the
Series A Redemption Amount on the date ninety (90) days after the closing of the IPO; and 

        WHEREAS,
the Company and the Investors desire that the Company redeem the Series A Preferred Stock immediately following the closing of the IPO with payments to be paid by the
Company out of the proceeds of the IPO; 

        NOW
THEREFORE, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged and agreed to by all parties, the parties hereto agree as follows: 

	1.
	Redemption of Series A Preferred Stock. Notwithstanding anything to the contrary in the Certificate of Incorporation, and subject
to the terms and conditions of this Redemption Agreement, the Company and the Investors hereby agree that the Company may and will redeem the Series A Preferred Stock contemporaneously with the
closing of the IPO with the aggregate Series A Redemption Amount to be paid by the Company out of the proceeds of the IPO.

	2.
	Acknowledgment. The Company and the Investors acknowledge and agree that all other provisions of the Certificate of Incorporation shall
remain in full force and effect.

	3.
	Effectiveness. This Redemption Agreement shall be effective upon execution by the Company and the Investors; however, the redemption of the Series A
Preferred Stock as contemplated by this agreement is conditioned upon the closing of the IPO.

 
	4.
	 Amendments, Waivers and Consents. For the purposes of this Redemption Agreement and all agreements, documents and instruments executed
pursuant hereto, except
as otherwise specifically set forth herein or therein, no course of dealing between the Company and the Investors and no delay on the part of any party hereto in exercising any rights hereunder or
thereunder shall operate as a waiver of the rights hereof and thereof. No covenant or other provision hereof or thereof may be waived otherwise than by a written instrument signed by the party so
waiving such covenant or other provision; provided, however, that except as otherwise provided herein or therein, changes in or additions to, and any consents required by, or requests or demands made
pursuant to, this Redemption Agreement may be made, and compliance with any term, covenant, condition or provision set forth herein may be omitted or waived (either generally or in a particular
instance and either retroactively or prospectively) by a written instrument or instruments signed by the Investors and the Company. 

	5.
	Governing Law. This agreement shall be deemed to be a contract made under, and shall be construed in accordance with, the laws of the State of Delaware.

 
	6.
	 Counterparts. This Redemption Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of
which together shall
constitute one and the same instrument. This Redemption Agreement may be executed via facsimile, which shall be deemed an original.

	7.
	Integration. This Redemption Agreement, including the exhibits, documents and instruments referred to herein or therein and any other
instruments, documents or agreements executed or delivered herewith on the date hereof, constitutes the entire agreement, and supersedes all other prior agreements and understandings, both written and
oral, among the parties with respect to the subject matter hereof. 

[Remainder of Page Left Intentionally Blank] 

        IN
WITNESS WHEREOF, the parties hereto have executed this Redemption Agreement as of the date first set forth above 

	 	 	COMPANY:
	

 	
 	

BLADELOGIC, INC.
	

 	
 	

By:	
/s/ Dev Ittycheria
 Name: Dev Ittycheria

Title: President and CEO

	INVESTORS:	 
	

BESSEMER VENTURE PARTNERS V L.P.

BESSEC VENTURES V L.P.

BVE 2001 LLC

BVE 2001(Q) LLC

BIP 2001 L.P.	

 
	

By:	

Deer V & Co. LLC, General

Partner/Managing Member	

 
	

By::	
/s/ J. Edmund Colloton
	

 
	Name: J. Edmund Colloton

Title: Executive Manager	 
	

BATTERY VENTURES VI, L.P.	

 
	By:	Battery Partners VI, LLC

General Partner	 
	
/s/ R. David Tabors
 Name: R. David Tabors

Title: Member Manager	

 
	

BATTERY INVESTMENT PARTNERS VI, LLC	

 
	
/s/ R. David Tabors
 Name: R. David Tabors

Title: Member Manager	

 

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BladeLogic, Inc. Series A Preferred Stock Redemption Agreement

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