Document:

exv10w12

Exhibit 10.12

PROGRESS SOFTWARE CORPORATION

2009 FISCAL YEAR COMPENSATION PROGRAM FOR NON-EMPLOYEE

DIRECTORS

	A.	 	Amounts of 2009 Fiscal Year Compensation

	 	 	 	 	 	 	 
	 
	 	•	 	Annual Board Retainer (cash):	 	$75,000 
	 
	 	 	 	 	 	 
	 
	 	•	 	Committee  fees (cash):	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	Audit Committee:
	 	$25,000 for Chair
	 
	 	 	 	 	 	$20,000 for Members
	 
	 	 	 	 	 	 
	 
	 	 	 	Nominating and Corporate
	 	 
	 
	 	 	 	Governance Committee:
	 	$12,500 for Chair
	 
	 	 	 	 	 	$10,000 for Members
	 
	 	 	 	 	 	 
	 
	 	 	 	Compensation Committee:
	 	$15,000 for Chair
	 
	 	 	 	 	 	$12,500 for Members
	 
	 	 	 	 	 	 
	 
	 	 	 	Strategic Planning Committee:
	 	$25,000 for Chair
	 
	 	 	 	(1st half of FY09 only)
	 	$20,000 for Members

	 	 	Equity Component:

	 	•	 	$150,000 to be delivered in two installments, coincident with when grants are
provided to employees per the Company’s Stock Option Grant Policy. The Equity
Component will be divided equally between Options and Director Shares. Each
installment will consist of $37,500 of Options and $37,500 of Director Shares. The
Black-Scholes value on the grant date will be used to determine the value of options,
and the number of Director Shares will be determined by dividing $37,500 by the fair
market value of Company common stock on the date of issuance.
	 
	 	•	 	The Director Shares will be full value shares of Company common stock and will not
be subject to any vesting requirement or transfer or other restrictions. Options will
be fully vested upon issuance.

	 	 	Timing

	 	•	 	Annual fiscal year cash compensation will be paid in two installments, coincident
with the April (or such later time as the Company’s Annual Shareholder’s Meeting
occurs) and October dates of the broad-based employee equity grants. The April
payment is for service from December 1 through May 31, and the October payment is for
service from June 1 through

 

 

	 	 	 	November 30. Amounts paid will be pro-rated for partial year service, with a
fractional month of service rounded to a whole month. Accordingly, if a director
resigns from the Board, is removed from the Board by a vote, is removed from the Board
due to a change in control, or dies in office, he or she is paid a pro-rated amount for
service through date of termination of service. Similarly a director who joins the
Board other than on the first day of the fiscal year will be paid a pro-rated amount of
the annual fiscal year compensation. The same proration rule will also apply to any
partial year service on any committee.

	B.	 	Initial Director Appointment Grant
	 
	 	 	Each newly elected Director shall receive 10,000 Deferred Stock Units at the first April or
October grant date following his or her election to the Board. The DSUs will vest over a
60-month period, beginning on the first day of the month following the month the Director
joins the Board, with full acceleration upon a change in control. DSUs will be settled
upon a Director’s separation from service from the Board of Directors or change in control,
if earlier, and not upon vesting.
	 
	C.	 	Stock Retention Guidelines
	 
	 	 	All non-employee Directors must hold 10,000 shares of the Corporation’s common stock, which
for purposes of this requirement shall include Director Shares and vested DSUs. Directors
have five years to attain this guideline from the date of election to the Board.
	 
	D.	 	Miscellaneous
	 
	 	 	Employee Directors shall not be entitled to participate in the 2009 Director Compensation
Plan. No additional compensation shall be paid to the Lead Independent Director.

2exv10w21

Exhibit 10.21

[Letterhead of Progress Software Corporation]

May 12, 2009

Barry N. Bycoff

The Ritz Carlton Tower

Boston Common

3 Avery Street, Unit 609

Boston, MA 02111-1005

Dear Barry:

This letter agreement sets forth the terms and conditions of your employment with Progress Software
Corporation (the “Company”) as Executive Chairman of the Board. The effective date of your
employment as Executive Chairman was March 29, 2009 and you will serve as Executive Chairman for a
one-year term (the “Term”) expiring at the annual meeting of shareholders of the Company in fiscal
2010. As Executive Chairman, you will perform the following duties:

	 	•	 	Provide advice to the Chief Executive Officer with a principal focus on strategic
matters;
	 
	 	•	 	Consult in the annual performance evaluation of the CEO;
	 
	 	•	 	Work with the Lead Independent Director and the CEO to prepare Board of Directors
meeting agendas;
	 
	 	•	 	Chair meetings of the Board of Directors; and
	 
	 	•	 	Report on the overall progress of the Company.

You will spend twenty (20) hours per week performing the foregoing duties, with at least two
working days per week spent at the Company’s headquarters in Bedford, Massachusetts.

As Executive Chairman, you will be entitled to the following compensation for your services:

	1.	 	Base Salary. Your base salary will be $250,000, payable on regular pay dates of the Company
and subject to applicable employment and income tax withholding.
	 
	2.	 	Restricted Stock Units. At the next regularly scheduled quarterly meeting of the
Compensation Committee, you will be issued 40,000 restricted stock units, which will vest in
two equal installments, with the first installment vesting six months after issuance and the
second installment vesting six months thereafter, subject to your continued service with the
Company.

 

 

	3.	 	Benefits. As an employee of the Company, you will also be eligible to participate as a
part-time employee in the Company’s employee benefit plans, which includes Medical Insurance,
Dental Insurance, Vision Insurance, Life Insurance, Long and Short Term Disability, a 401(k)
plan, Employee Stock Purchase Plan, paid vacations and holidays, in each case, subject to the
terms and conditions of those plans or programs, as amended from time to time.
	 
	4.	 	Bonus. You will not be entitled to participate in the Company’s Executive and Key
Contributor Bonus program or any other bonus plans.

The foregoing compensation will be in lieu of any other compensation to which you would otherwise
be entitled as a member of the Board of Directors of the Company during the Term.

In the event of (a) your death, (b) your disability (defined as your being unable to perform your
duties as Executive Chairman as the result of total and permanent incapacity due to physical or
mental illness), or (c) your removal as Executive Chairman by the Board of Directors, in each case,
occurring prior to the expiration of the Term, (i) you (or your estate, as the case may be) shall
be paid the unpaid portion of your base salary for the remainder of the Term, payable in one lump
sum within 30 days and subject to applicable employment and income tax withholding, and (ii) all
unvested restricted stock units shall immediately vest. You will not be entitled to receive any
severance or other amounts in connection with the foregoing.

Notwithstanding the foregoing, if at the time of your separation from service (within the
meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), you are
considered a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, and
if any payment that you become entitled under this Agreement is considered deferred compensation
subject to interest and additional tax imposed pursuant to Section 409A(a) of the Code as the
result of the application of Section 409A(a)(2)(B)(i) of the Code, then no such payment shall be
payable prior to the date that is the earliest of (A) six months after your separation from service
(within the meaning of Section 409A of the Code, (B) your death, or (C) such other date as will
cause such payment not to be subject to such interest and additional tax.

Please confirm your acceptance of this offer by signing this letter in the space indicated and
returning the signed letter to Joseph Andrews, Vice President, Human Resources.

Sincerely,

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Michael L. Mark
 	 
	 	 	Michael L. Mark 	 
	 	 	Lead Independent Director, Board of Directors

Progress Software Corporation 	 
	 

I accept the offer of employment stated in this letter.

	 	 	 	 	 
	/s/ Barry N. Bycoff
 

	 	5/15/09
 

	 	 
	Barry N. Bycoff

	 	Date	 	 

-2-exv10w22

Exhibit 10.22

[Letterhead of Progress Software Corporation]

May 12, 2009

Richard D. Reidy

3 Blueberry Circle

Andover, MA 01810

Dear Rick:

The purpose of this letter is to set forth your compensation terms as President and Chief Executive
Officer of Progress Software Corporation (“PSC” or the “Company”). The effective date of your
promotion to President and Chief Executive Officer was March 30, 2009.

	1.	 	Base Salary. In accordance with the general cash compensation freeze in place at the
Company, your base salary for FY09 will continue to be $330,000, payable on regular pay dates
of the Company and subject to applicable employment and income tax withholding. Upon lifting
such general cash compensation freeze, the Compensation Committee of the Board of Directors of
the Company will review and, to the extent necessary, increase your base salary to reflect
then market base salary rates for chief executive officers of comparable software companies.
Although market conditions could change, you and the Company acknowledge that the current
market base salary rate for a CEO of a comparable software company is $450,000.
	 
	2.	 	Bonus. You will be entitled to participate in the Company’s Executive and Key Contributor
Bonus program for FY09 at your current target bonus of $270,000. Upon lifting the general
cash compensation freeze described above, the Compensation Committee will review and, to the
extent necessary, increase your target bonus to reflect then market bonus rates for CEOs of
comparable software companies. Although market conditions could change, you and the Company
acknowledge that the current market bonus rate for a CEO of a comparable software company is
$450,000.
	 
	3.	 	Benefits. You will continue to participate in the Company’s employee benefit plans,
including Medical Insurance, Dental Insurance, Vision Insurance, Life Insurance, Long and
Short Term Disability, the 401(k) plan, Employee Stock Purchase Plan, paid vacations and
holidays, in each case, subject to the terms and conditions of those plans or programs, as
amended from time to time.

 

 

	4.	 	Equity Compensation. At the May 12, 2009 meeting of the Compensation Committee, and as part
of the broad-based employee equity grants, it will be recommended that the Compensation
Committee approve the issuance to you of 87,500 stock options and 75,000 restricted stock
units (RSUs). The stock option award represents one-half of your total stock option
allocation for FY09, with an additional 87,500 stock options anticipated to be issued at the
October 2009 Compensation Committee meeting. The RSU award represents your entire RSU
allocation for FY09. The terms and conditions of such stock option and RSU awards will be
substantially identical to the terms applicable to the broad-based employee awards being made
at the same Compensation Committee meeting. You will be eligible for additional equity awards
in future years consistent with market practices for CEOs of comparable software companies.

The Company agrees to enter into a severance agreement providing you with certain compensation and
benefits following the termination of your employment on customary terms and conditions to be
finalized.

Except as noted above, all other terms and conditions of your employment with the Company remain
unchanged.

Please acknowledge your acceptance of these terms by signing in the space below.

Sincerely,

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Michael L. Mark
 	 
	 	 	Michael L. Mark 	 
	 	 	Lead Independent Director, Board of Directors

Progress Software Corporation 	 
	 

ACKNOWLEDGED AND AGREED TO:

	 	 	 	 	 
	/s/ Richard D. Reidy
 

Richard D. Reidy

	 	5/28/09
 

Date
	 	 

-2-

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