Document:

Non-Employee Director Remuneration and Expense Reimbursement Summary

 Exhibit 10.2 
 Non-Employee Director Remuneration and Expense Reimbursement Summary 
  

	 	1.	Cash Compensation 

  

					
	a)	 	Annual Retainers
		
	—	 	A non-employee Chairperson of the Board of Directors shall receive an annual Board retainer of $125,000.00 paid quarterly in advance on May 1, August 1, November 1 and
February 1
		
	—	 	Each non-employee member of the Board of Directors other than the non-employee Chairperson shall receive an annual Board retainer of $50,000.00 paid quarterly in advance on
May 1, August 1, November 1 and February 1
		
	—	 	The non-employee director who serves as Chairperson of the Audit Committee shall receive, in addition to his or her Board retainer, an annual Committee retainer of $20,000.00 paid quarterly in
advance on May 1, August 1, November 1 and February 1
		
	—	 	Each non-employee director who serves as Chairperson of a Board Committee other than the Audit Committee shall receive, in addition to his or her Board retainer, an annual Committee retainer
of $10,000.00 paid quarterly in advance on May 1, August 1, November 1 and February 1
		
	—	 	Under the terms of the 2000 Stock Plan, non-employee directors have the right to convert all or any portion of their annual Board retainers (but not their Committee retainers) to the award of
Common Stock Equivalents (the “Retainer CSEs”)
			
		 	—	  	Retainer CSEs are purchased on each date an installment of the annual Board retainer is paid
		 	—	  	Any non-employee director who elects to purchase Retainer CSEs will receive a supplemental credit equal to 25% of the portion of the annual Board retainer used to purchase Retainer CSEs (referred to as
the “Match”)
		 	—	  	The Match may be applied only to the purchase of additional CSEs (“Match CSEs”)
		 	—	  	The number of Retainer CSEs and Match CSEs to be received is based on the closing price of Novell common stock on the day before the grant
		 	—	  	Retainer CSEs are fully vested at the time of the grant
		 	—	  	Match CSEs, unlike Retainer CSEs, are subject to a cliff vesting period of three years from the date of award
		 	—	  	The Retainer CSEs will be converted into shares of Novell common stock on the earlier to occur of (i) the termination of service as a director and (ii) a date prior to the termination of service
as a director specified by the director
		 	—	  	Vested Match CSEs will be converted into shares of Novell common stock on the termination of service as a director

  

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	b)	 	Meeting Fees
		
	—	 	$1,500 for each Board and Board telephonic meeting attended
		
	—	 	$1,500 for each Committee and Committee telephonic meeting attended as a Committee member

  

	 	2.	Equity Compensation 

					
		
	—	 	25,000 options granted annually that vest over 2 years at 50% per year on anniversary date of award
		
	—	 	One-time grant of 50,000 options made to new non-employee directors that vest over 4 years at 25% per year on anniversary date of award
		
	—	 	Non-employee directors are required to hold equity (Novell common stock) equal to three times their annual Board retainer
			
		 	—	  	Non-employee Chairperson of the Board of Directors Total Stock Ownership Requirement (“Total SOR”) is $375,000 ($125k x 3)
		 	—	  	Other non-employee directors Total SOR is $150,000 ($50k x 3)
		 	—	  	Non-employee directors have five years to achieve the Total SOR, in accordance with the following schedule:

  

			
	Year	  	 Incremental SOR Percentage (Percentage of the
 Participant’s Total SOR)

	1	  	5%
		
	2	  	15%
		
	3	  	30%
		
	4	  	60%
		
	5	  	100%

					
			
		 	—	  	Forms of equity that count towards Total SOR consist of shares that are already owned and held, shares acquired on the open market or upon the exercise of stock options, Retainer CSEs, and any vested
Match CSEs
			
		 	—	  	The five year “phase in” of the SOR requirement described above applies (i) from November 1, 2004 for non-employee directors who were on the Board as of that date and (ii) for
non-employee directors who joined the Board after November 1, 2004, from the date of their election to the Board

  

	 	3.	Retirement/Disability/Death Provisions 

  

			
	a)	 	Directors’ Plan (As to options granted under this Plan prior to its expiration)

	 	

	 	

  

 2 

			
	—	 	Upon retirement at age 73, 100% acceleration of all unvested options
	—	 	Upon retirement at age 73, vested options remain exercisable for up to 12 months following retirement
	—	 	Upon disability, no acceleration of unvested options
	—	 	Upon disability, vested options remain exercisable for up to 12 months following disability
	—	 	Upon death, no acceleration of unvested options
	—	 	Upon death, options remain exercisable for up to 12 months
		
	b)	 	2000 Stock Plan 
		
	—	 	Upon retirement at age 73, 100% acceleration of all unvested options
	—	 	Upon retirement at age 73, vested options remain exercisable for either (i) the amount of time specified in the Option Agreement (but not beyond the expiration date of the option) or (ii) 24
months following retirement in the absence of a time specified in the Option Agreement (but not beyond the expiration date of the option)
	—	 	Upon disability, no acceleration of unvested options
	—	 	Upon disability, vested options remain exercisable for up to 12 months following disability
	—	 	Upon death, vesting on an accelerated basis with respect to options that would have vested within 12 months following such death had the director not died and remained a director
	—	 	Upon death, vested options remain exercisable for up to 12 months

  

	 	4.	Reimbursements 

  

					
	a)	 	Meetings
		
	—	 	Novell will provide reimbursement for attendance to all Board and Committee meetings covering the following:
			
		 	—	 	first class airfare ticket or equivalent
		 	—	 	lodging
		 	—	 	meals
		 	—	 	ground transportation to and from the meeting
		
	b)	 	Conferences
		
	—	 	Novell will provide reimbursement for attendance to one conference per year covering the following:
			
		 	—	 	registration fees
		 	—	 	first class airfare ticket or equivalent
		 	—	 	lodging
		 	—	 	meals
		 	—	 	ground transportation to and from the conference

  

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	c)	 	Orientation
		
	—	 	Novell will provide reimbursement for new directors for attendance to one third-party orientation program covering the following:
			
		 	—	 	registration fees
		 	—	 	first class airfare ticket or equivalent
		 	—	 	lodging
		 	—	 	meals
		 	—	 	ground transportation to and from the orientation program

  

 4Stock Option Amendment Agreement with Dana C. Russell

 Exhibit 10.3 
 STOCK OPTION AMENDMENT AGREEMENT 
 THIS STOCK OPTION AMENDMENT AGREEMENT
(“Agreement”) is made by and between Novell, Inc. (the “Company”) and Dana C. Russell (the “Employee”) on this 10th day of January, 2008 (the “Effective Date”). 
 WHEREAS, the Company previously granted the Employee the options identified on Schedule I (the “Options”) to purchase
shares of the Company’s common stock (“Company Stock”) under one or more of the Company’s employee stock incentive plans (individually, a “Plan”). 
 WHEREAS, the Company and Employee entered into a formal Stock Option Agreement (the “Option Agreement”) evidencing such Options.

 WHEREAS, the Company has determined, on the basis of the findings of the Audit Committee of the Board of Directors in connection
with its investigation into the Company’s historical option grant practices, that the Options were incorrectly priced in that the exercise price of each such Option is based on the fair market value of the Company’s common stock on a date
earlier than the date that has now been determined to be the actual grant date of that Option for financial accounting purposes. 
 WHEREAS, the Employee will be subject to tax disadvantages under Section 409A of the Internal Revenue Code, as amended (the “Code”) and state tax law with respect to the Options, unless certain remedial actions under
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), are taken within the relief period provided under the regulations issued by the Internal Revenue Service. 
 WHEREAS, to avoid any potentially adverse tax consequences under Section 409A of the Code, and any comparable provisions of applicable state
tax law, the Company wishes to increase the exercise price per share of the 6,000 Options shown in column four of Section A of Schedule I (the “Repriced Options”) to the higher “New Exercise Price Per Share Following
Amendment” set forth for those Options in column six of Section A of Schedule I, and the Employee has agreed to do so. 
 WHEREAS, in order to compensate Employee for the increased exercise price to be in effect for the Repriced Options, the Company is willing to pay Employee a special cash bonus in a gross dollar amount set forth as the “Total
Special Bonus” in Section A of Schedule I (the “Special Bonus”). 
 WHEREAS, with respect to the Options
shown in Section B of Schedule I, because, as of the Effective Date, the exercise price of such Options is greater than the fair market value of the underlying Company Stock, the parties desire to cancel such Options (the
“Cancelled Options”) and issue new options (the “New Options”) to replace such Cancelled Options on substantially identical terms and conditions as the Cancelled Options. 

 NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, Employee and the Company agree as follows: 
 1.        Increased Exercise Price. The exercise price per share set forth in the Option Agreement for each of the 6,000 Repriced Options is hereby increased to
the higher “New Exercise Price Per Share Following Amendment” set forth for the Repriced Options in column six of Section A of Schedule I. Except for the foregoing increase to the exercise price per share of the 6,000
Repriced Options, no other terms or provisions of the Option Agreements for the 32,000 Options set forth in Section A of Schedule I or the applicable Plans for such Options have been modified as a result of this Agreement, and those
terms and provisions shall continue in full force and effect. 
 2.         Special
Bonus. Company shall pay the Special Bonus to Employee on the Company’s first regularly-scheduled payroll date after January 1, 2009, which will not be later than January 31, 2009. The Special Bonus shall be subject to the
Company’s collection of all applicable federal, state and local income taxes and payroll withholdings, and Employee shall be paid only the net amount of such Special Bonus remaining after such taxes and withholdings have been collected by the
Company. Employee need not remain in the Company’s employ to receive the Special Bonus. 
 3.
        Cancellation and Regrant of Options. 
   (a)    The Cancelled Options shall be deemed rescinded, cancelled and disposed of to the Company as of the Effective Date. Employee hereby agrees that he has no further right, title or interest in or to the
Cancelled Options and that he no longer has any right or entitlement to purchase any shares of Company Stock or other capital stock of the Company under the Cancelled Options. Employee releases the Company, its officers and directors of all
liability in connection with such Cancelled Options. 
   (b)    As of the Effective Date, Employee shall
receive New Options in cancellation and replacement of the Cancelled Options. It is the intent of the parties that, with the exception of the grant date, the New Options shall have exactly the same terms and conditions as the Cancelled Options,
including, without limitation, the exercise price payable per share of Company Stock, the number of underlying shares of Company Stock, the vesting provisions, and the expiration date. The New Options shall be granted under the same Plan under which
the Cancelled Options were granted and shall be subject to terms set forth in the Option Agreement for the New Options. The cancellation and regrant is effected solely to evidence the cancellation and regrant procedure required under Code
Section 409A for any option (or portion thereof) which was not vested as of December 31, 2004 and which may be deemed to have been granted with an exercise price below the fair market value of the option shares on the grant date.

 4.         Indemnity. In the event that the Repriced Options and/or the New Options
are deemed to constitute a deferred compensation arrangement subject to Section 409A of the Code, the Company agrees that it will defend Employee and, upon final adjudication and assessment of any income taxes imposed on 

 
Employee by virtue of Section 409A and subject to the terms of this Agreement, indemnify and hold Employee harmless from and against any portion of such
taxes which arise and are imposed pursuant to Section 409A(a)(1)(B) and any penalties and/or interest assessed against Employee based on the failure to pay and discharge any such taxes (whether assessed under Section 409A(a)(1)(B) or
otherwise) in a timely manner. In addition, to the extent that such indemnification gives rise to taxable income to the Employee, the Company shall provide a “gross-up” of the reimbursement payment made sufficient to offset Employee’s
federal income tax liability in respect of the reimbursement and the gross-up payment. The obligation of the Company to defend and indemnify in accordance with the foregoing is conditioned upon (i) Employee giving prompt written notice to the
Company of any audit, notice or examination of Employee’s federal tax returns raising the application of Section 409A to the Repriced Options and/or the New Options and (ii) Employee permitting the Company, at the Company’s
expense, to engage counsel to contest the application of Section 409A and control that aspect of any resulting audit or proceedings to resolve the issue. In accepting the indemnification provided hereby, Employee understands and agrees that the
Company is not agreeing to or obligated to provide indemnification in respect of income or withholding taxes arising from the actual exercise or any imputed exercise of the Options themselves (including, without limitation, any federal income tax
arising under Section 409A(a)(1)(A)). 
 5.        Entire Agreement. This
Agreement, together with the Option Agreements (to the extent not expressly amended hereby) and the applicable Plans, represents the entire agreement of the parties with respect to the matters addressed herein and supersedes any and all previous
contracts, arrangements or understandings, whether oral or in writing, between the parties with respect to the matters addressed herein. This Agreement may be amended at any time only by means of a writing signed by Employee and an authorized
officer of the Company. 
 6.         Governing Law. This Agreement shall be governed
by the laws of The Commonwealth of Massachusetts without reference to its conflicts of law principles. 
 IN WITNESS WHEREOF, this
Agreement has been executed on behalf of the Company by a duly-authorized officer and Employee has hereunto set his or her hand as of the date first written above. 
  

									
	NOVELL, INC.	 		 	EMPLOYEE	 	
				
	 /s/ Alan J. Friedman
	 		 	 /s/ Dana C. Russell
	 	
	By:	 	Alan J. Friedman	 		 	Dana C. Russell	 	
	Title:	 	Senior Vice President	 		 		 	

 SCHEDULE I 
 Section A: Repriced Option 
  

													
	 Original
 Grant
Date
	  	Total Number
of Outstanding
Option Shares	  	Number of
Outstanding
Option Shares
Not Subject to
Amended
Exercise Price
	  	Number of
Outstanding
Option Shares
Subject to
Amended
Exercise
Price	  	Exercise Price
Per Share
Prior to
Amendment	  	New Exercise
Price Per Share
Following
Amendment	  	Special
 Bonus
 Payable on
 the first
regularly
scheduled
payroll
 date
 following
January 1,
2009

	 9/10/2001
	  	32,000	  	26,000	  	6,000	  	$3.92	  	$3.94	  	$120.00
	 	  	 	  	 	  	 	  	 	  	 	  	 

 Total Special Bonus:
$120.00                                 
  
 Section B: Cancelled Option/New Grants 
  

											
	 Prior Option
  
	  	Original
 Grant Date
  
	  	Revised
 Grant Date
  
	  	Current
 Exercise Price
  
	  	Total Number of
Option Shares to
be Canceled and
Regranted  
	  	New Exercise
Price  

	 13,000
	  	1/07/2004	  	1/10/2008	  	$10.68	  	13,000	  	$10.68

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