Document:

Visigenic Software, Inc. 1995 Stock Option Plan

Exhibit 10.18 
 
VISIGENIC SOFTWARE, INC. 
 
1995 STOCK OPTION PLAN 
 
(As Amended June 17, 1996) 
 

	 	1.	 	Establishment, Purpose and Term of Plan. 

 
1.1    Establishment.  The Visigenic Software, Inc. 1995 Stock Option Plan (the
“Plan”) is hereby established effective as of April 18, 1995 (the “Effective Date”). 
 
1.2    Purpose.  The purpose of the Plan is to advance the interests of the
Participating Company Group and its stockholders by providing an incentive to attract, retain and reward persons performing services for the Participating Company Group and by motivating such persons to contribute to the growth and profitability of
the Participating Company Group. 
 
1.3    Term of Plan.  The Plan shall continue in effect until the earlier of its termination by the Board or the date on which all of the shares of Stock available for
issuance under the Plan have been issued and all restrictions on such shares under the terms of the Plan and the agreements evidencing Options granted under the Plan have lapsed. However, all Options shall be granted, if at all, within ten (10)
years from the Effective Date. 
 

	 	2.	 	Definitions and Construction. 

 
2.1    Definitions.  Whenever used herein, the following terms shall have their
respective meanings set forth below: 
 
(a)    “Board” means the Board of Directors of the Company. If one or more Committees have been appointed by the Board to administer the Plan, “Board” also means such Committee(s).

 
(b)    “Code” means the Internal Revenue Code of 1986, as amended, and any applicable regulations promulgated thereunder . 
 
(c)    “Committee” means the Compensation Committee or other committee
of the Board duly appointed to administer the Plan and having such powers as shall be specified by the Board. Unless the powers of the Committee have been specifically limited, the Committee shall have all of the powers of the Board granted herein,
including, without limitation, the power to amend or terminate the Plan at any time, subject to the terms of the Plan and any applicable limitations imposed by law. 
 
(d)    “Company” means Visigenic Software, Inc., a Delaware
corporation, or any successor corporation thereto. 
 

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(e)    “Consultant” means any person, including an advisor, engaged by a Participating Company to render services other than as an Employee or a Director . 
 
(f)    “Director” means
a member of the Board or of the board of directors of any other Participating Company. 
 
(g)    “Employee” means any person treated as an employee (including an officer or a Director who is also treated as an employee) in the records of a Participating
Company; provided, however, that neither service as a Director nor payment of a director’s fee shall be sufficient to constitute employment for this purpose. 
 
(h)    “Exchange Act” means the Securities Exchange Act of 1934, as
amended. 
 
(i)    “Fair Market Value” means, as of any date, the value of a share of stock or other property as determined by the Board, in its sole discretion, or by the Company, in its sole discretion, if
such determination is expressly allocated to the Company herein. 
 
(j)    “Incentive Stock Option” means an Option intended to be (as set forth in the Option Agreement) and which qualifies as an incentive stock option within the meaning of Section 422(b)
of the Code. 
 
(k)    “Insider” means an officer or a Director of the Company or any other person whose transactions in Stock are subject to Section 16 of the Exchange Act. 
 
(l)    “Nonstatutory Stock
Option” means an Option not intended to be (as set forth in the Option Agreement) or which does not qualify as an Incentive Stock Option. 
 
(m)    “Option” means a right to purchase Stock (subject to adjustment as provided in Section 4.2)
pursuant to the terms and conditions of the Plan. An Option may be either an Incentive Stock Option or a Nonstatutory Stock Option. 
 
(n)    “Option Agreement” means a written agreement between the Company and an Optionee setting
forth the terms, conditions and restrictions of the Option granted to the Optionee and any shares acquired upon the exercise thereof. 
 
(o)    “Optionee” means a person who has been granted one or more Options. 
 
(p)    “Parent
Corporation” means any present or future “parent corporation” of the Company, as defined in Section 424(e) of the Code. 
 
(q)    “Participating Company” means the Company or any Parent Corporation or Subsidiary
Corporation. 
 

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(r)    “Participating Company Group” means, at any point in time, all corporations collectively which are then Participating Companies. 
 
(s)    “Rule 16b-3” means Rule 16b-3 as promulgated under the Exchange
Act, as amended from time to time, or any successor rule or regulation. 
 
(t)    “Stock” means the common stock, par value $0.001, of the Company, as adjusted from time to time in accordance with Section 4.2. 
 
(u)    “Subsidiary
Corporation” means any present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code. 
 
(v)    “Ten Percent Owner Optionee” means an Optionee who, at the time an Option is granted to the
Optionee, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of a Participating Company within the meaning of Section 422(b)(6) of the Code. 
 
2.2    Construction.  Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise
indicated by the context, the singular shall include the plural, and the plural shall include the singular, and the term “or” shall include the conjunctive as well as the disjunctive. 
 

	 	3.	 	Administration. 

 
3.1    Administration by the Board.  The Plan shall be administered by the Board, including
any duly appointed Committee of the Board. All questions of interpretation of the Plan or of any Option shall be determined by the Board, and such determinations shall be final and binding upon all persons having an interest in the Plan or such
Option. Any officer of a Participating Company shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, determination or election which is the responsibility of or which is allocated to the Company
herein, provided the officer has apparent authority with respect to such matter, right, obligation, determination or election. 
 
3.2    Powers of the Board.  In addition to any other powers set forth in the Plan and subject
to the provisions of the Plan, the Board shall have the full and final power and authority, in its sole discretion: 
 
(a)    to determine the persons to whom, and the time or times at which, Options shall be granted and the number of
shares of Stock to be subject to each Option; 
 
(b)    to designate Options as Incentive Stock Options or Nonstatutory Stock Options; 
 
(c)    to determine the Fair Market Value of shares of stock or other property; 
 

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(d)    to determine the terms, conditions and restrictions applicable to each Option (which need not be identical) and any shares acquired upon the exercise thereof, including, without limitation, (i) the exercise
price of the Option, (ii) the method of payment for shares purchased upon the exercise of the Option, (iii) the method for satisfaction of any tax withholding obligation arising in connection with the Option or such shares, including by the
withholding or delivery of shares of stock, (iv) the timing, terms and conditions of the exercisability of the Option or the vesting of any shares acquired upon the exercise thereof, (v) the time of the expiration of the Option, (vi) the effect of
the Optionee’s termination of employment or service with the Participating Company Group on any of the foregoing, and (vii) all other terms, conditions and restrictions applicable to the Option or such shares not inconsistent with the terms of
the Plan; 
 
(e)    to approve
one or more forms of Option Agreement; 
 
(f)    to amend, modify, extend, or renew, or grant a new Option in substitution for, any Option or to waive any restrictions or conditions applicable to any Option or any shares acquired upon the exercise
thereof; 
 
(g)    to delegate
to any proper officer of the Company the authority to grant one or more Options, without further approval of the Board, to any person eligible pursuant to Section 5, other than a person who, at the time of such grant, is an Insider; provided,
however, that (i) such Options shall not be granted to any one person within any fiscal year of the Company for more than a number of shares of Stock as may be determined by the Board from time to time, (ii) the exercise price per share of each such
Option shall be equal to 100% of the Fair Market Value of a share of Stock on the date of grant, and (iii) each such Option shall be subject to the terms and conditions of the appropriate standard form of Option Agreement approved by the Board and
shall conform to the provisions of the Plan and such other guidelines as shall be established from time to time by the Board; 
 
(h)    to prescribe, amend or rescind rules, guidelines and policies relating to the Plan, or to adopt supplements
to, or alternative versions of, the Plan, including, without limitation, as the Board deems necessary or desirable to comply with the laws of, or to accommodate the tax policy or custom of, foreign jurisdictions whose citizens may be granted
Options; and 
 
(i)    to
correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Option Agreement and to make all other determinations and take such other actions with respect to the Plan or any Option as the Board may deem advisable to the
extent consistent with the Plan and applicable law. 
 
3.3    Disinterested Administration.  With respect to participation by Insiders in the Plan, at any time that any class of equity security of the Company is registered pursuant to Section
12 of the Exchange Act, the Plan shall be administered by the Board in compliance with the “disinterested administration” requirements, if any, of Rule 16b-3. 
 

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	 	4.	 	Shares Subject to Plan. 

 
4.1    Maximum Number of Shares Issuable.  Subject to adjustment as provided in Section 4.2,
the maximum aggregate number of shares of Stock that may be issued under the Plan shall be two million five hundred thousand (2,500,000) and shall consist of authorized but unissued shares or reacquired shares of Stock or any combination thereof. If
an outstanding Option for any reason expires or is terminated or canceled or if shares of Stock acquired, subject to repurchase, upon the exercise of an Option are repurchased by the Company, the shares of Stock allocable to the unexercised portion
of such Option or such repurchased shares of Stock shall again be available for issuance under the Plan. 
 
4.2    Adjustments for Changes in Capital Structure.  In the event of any stock dividend,
stock split, reverse stock split, recapitalization, combination, reclassification or similar change in the capital structure of the Company, appropriate adjustments shall be made in the number and class of shares subject to the Plan and to any
outstanding Options and in the exercise price of any outstanding Options. If a majority of the shares which are of the same class as the shares that are subject to outstanding Options are exchanged for, converted into, or otherwise become (whether
or not pursuant to an Ownership Change Event as defined in Section 8.1) shares of another corporation (the “New Shares”), the Board may unilaterally amend the outstanding Options to provide that such Options are exercisable for New
Shares. In the event of any such amendment, the number of shares subject to, and the exercise price of, the outstanding Options shall be adjusted in a fair and equitable manner as determined by the Board, in its sole discretion. Notwithstanding the
foregoing, any fractional share resulting from an adjustment pursuant to this Section 4.2 shall be rounded up or down to the nearest whole number, as determined by the Board, and in no event may the exercise price of any Option be decreased to an
amount less than the par value, if any, of the stock subject to the Option. The adjustments determined by the Board pursuant to this Section 4.2 shall be final, binding and conclusive. 
 

	 	5.	 	Eligibility and Option Limitations. 

 
5.1    Persons Eligible for Options.  Options may be granted only to Employees, Consultants,
and Directors. For purposes of the foregoing sentence, “Employees” shall include prospective Employees to whom Options are granted in connection with written offers of employment with the Participating Company Group, and
“Consultants” shall include prospective Consultants to whom Options are granted in connection with written offers of engagement with the Participating Company Group. Eligible persons may be granted more than one (1) Option. 
 
5.2    Directors Serving on
Committee.  At any time that any class of equity security of the Company is registered pursuant to Section 12 of the Exchange Act, no member of a Committee established to administer the Plan in compliance with the
“disinterested administration” requirements, if any, of Rule 16b-3, while a member, shall be eligible to be granted an Option. 
 

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5.3    Option Grant Restrictions.  Any person who is not an Employee on the date an Option is granted to such person may be granted only a Nonstatutory Stock Option. An Incentive Stock
Option granted to a prospective Employee upon the condition that such person become an Employee shall be deemed granted on the date such person commences service with a Participating Company, with an exercise price determined as of such date in
accordance with Section 6.1. 
 
5.4    Fair Market Value Limitation.  To the extent that the aggregate Fair Market Value of stock with respect to which options designated as Incentive Stock Options are exercisable by an
Optionee for the first time during any calendar year (under all stock option plans of the Participating Company Group, including the Plan) exceeds One Hundred Thousand Dollars ($100,000), the portion of such options which exceeds such amount shall
be treated as Nonstatutory Stock Options. For purposes of this Section 5.4, options designated as Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of stock shall be determined as
of the time the option with respect to such stock is granted. If the Code is amended to provide for a different limitation from that set forth in this Section 5.4, such different limitation shall be deemed incorporated herein effective as of the
date and with respect to such Options as required or permitted by such amendment to the Code. If an Option is treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason of the limitation set forth in this
Section 5.4, the Optionee may designate which portion of such Option the Optionee is exercising and may request that separate certificates representing each such portion be issued upon the exercise of the Option. In the absence of such designation,
the Optionee shall be deemed to have exercised the Incentive Stock Option portion of the Option first. 
 
6.    Terms and Conditions of Options.  Options shall be evidenced by Option Agreements
specifying the number of shares of Stock covered thereby, in such form as the Board shall from time to time establish. Option Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the
following terms and conditions: 
 
6.1    Exercise Price.  The exercise price for each Option shall be established in the sole discretion of the Board; provided, however, that (a) the exercise price per share for an
Incentive Stock Option shall be not less than the Fair Market Value of a share of Stock on the effective date of grant of the Option, (b) the exercise price per share for a Nonstatutory Stock Option shall be not less than eighty-five percent (85%)
of the Fair Market Value of a share of Stock on the effective date of grant of the Option, and (c) no Incentive Stock Option granted to a Ten Percent Owner Optionee shall have an exercise price per share less than one hundred ten percent (110%) of
the Fair Market Value of a share of Stock on the effective date of grant of the Option. Notwithstanding the foregoing, an Option (whether an Incentive Stock Option or a Nonstatutory Stock Option) may be granted with an exercise price lower than the
minimum exercise price set forth above if such Option is granted pursuant to an assumption or substitution for another option in a manner qualifying under the provisions of Section 424(a) of the Code. 
 

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6.2    Exercise Period.  Options shall be exercisable at such time or times and subject to such terms, conditions, performance criteria, and restrictions as shall be determined by the Board
and set forth in the Option Agreement evidencing such Option: provided, however, that (a) no Incentive Stock Option shall be exercisable after the expiration of ten (10) years after the date such Option is granted, (b) no Incentive Stock Option
granted to a Ten Percent Owner Optionee shall be exercisable after the expiration of five (5) years after the date such Option is granted, and (c) no Option granted to a prospective Employee or prospective Consultant may become exercisable prior to
the date on which such person commences service with a Participating Company. 
 
6.3    Payment of Exercise Price. 
 
(a)    Forms of Payment Authorized.  Except as otherwise provided below, payment of the exercise
price for the number of shares of Stock being purchased pursuant to any Option shall be made (i) in cash, by check, or cash equivalent, (ii) by tender to the Company of shares of Stock owned by the Optionee having a Fair Market Value (as determined
by the Company without regard to any restrictions on transferability applicable to such stock by reason of federal or state securities laws or agreements with an underwriter for the Company) not less than the exercise price, (iii) by the assignment
of the proceeds of a sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option (including, without limitation, through an exercise complying with the provisions of Regulation T as promulgated from time to
time by the Board of Governors of the Federal Reserve System) (a “Cashless Exercise”), (iv) by the Optionee’s promissory note in a form approved by the Company, (v) by such other consideration as may be approved by the Board
from time to time to the extent permitted by applicable law, or (vi) by any combination thereof. The Board may at any time or from time to time, by adoption of or by amendment to the standard forms of Option Agreement described in Section 7, or by
other means, grant Options which do not permit all of the foregoing forms of consideration to be used in payment of the exercise price or which otherwise restrict one or more forms of consideration. 
 
(b)    Tender of
Stock.  Notwithstanding the foregoing, an Option may not be exercised by tender to the Company of shares of Stock to the extent such tender of Stock would constitute a violation of the provisions of any law, regulation or agreement
restricting the redemption of the Company’s stock. Unless otherwise provided by the Board, an Option may not be exercised by tender to the Company of shares of Stock unless such shares either have been owned by the Optionee for more than six
(6) months or were not acquired, directly or indirectly, from the Company. 
 
(c)    Cashless Exercise.  The Company reserves, at any and all times, the right, in the Company’s sole and absolute discretion, to establish, decline to
approve or terminate any program or procedures for the exercise of Options by means of a Cashless Exercise. 
 

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(d)    Payment by Promissory Note.  No promissory note shall be permitted if the exercise of an Option using a promissory note would be a violation of any law. Any permitted promissory note shall
be due and payable not more than ten (10) years after the Option is exercised, and interest shall be payable at least annually and at a rate at least equal to the minimum interest rate necessary to avoid imputed interest pursuant to all applicable
sections of the Code. The Board shall have the authority to permit or require the Optionee to secure any promissory note used to exercise an Option with the shares of Stock acquired upon the exercise of the Option or with other collateral acceptable
to the Company. Unless otherwise provided by the Board, in the event the Company at any time is subject to the regulations promulgated by the Board of Governors of the Federal Reserve System or any other governmental entity affecting the extension
of credit in connection with the Company’s securities, any promissory note shall comply with such applicable regulations, and the Optionee shall pay the unpaid principal and accrued interest, if any, to the extent necessary to comply with such
applicable regulations. 
 
6.4    Tax Withholding.  The Company shall have the right, but not the obligation, to deduct from the shares of Stock issuable upon the exercise of an Option, or to accept from the Optionee
the tender of, a number of shares of Stock having a Fair Market Value, as determined by the Company, equal to all or any part of the federal, state, local and foreign taxes, if any, required by law to be withheld by the Participating Company Group
with respect to such Option. Alternatively, in its sole discretion, the Company shall have the right to require the Optionee, through payroll withholding or otherwise, to make adequate provision for any such tax withholding obligations of the
Participating Company Group arising in connection with the Option. The Company shall have no obligation to deliver shares of Stock or to release shares of Stock from an escrow established pursuant to the Option Agreement until the Participating
Company Group’s tax withholding obligations have been satisfied by the Optionee. 
 
6.5    Repurchase Rights.  Shares issued under the Plan may be subject to a right of first refusal, one or more repurchase options, or other conditions and
restrictions as determined by the Board, in its sole discretion, at the time the Option is granted. The Company shall have the right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or
more persons as may be selected by the Company. Upon request by the Company, each Optionee shall execute any agreement evidencing such transfer restrictions prior to the receipt of shares of Stock hereunder and shall promptly present to the Company
any and all certificates representing shares of Stock acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions. 
 

	 	7	 	Standard Forms of Option Agreement. 

 
7.1    Incentive Stock Options.  Unless otherwise provided for by the Board at the time an
Option is granted, an Option designated as an “Incentive Stock Option” shall comply with and be subject to the terms and conditions set forth in the form of Immediately Exercisable Incentive Stock Option Agreement adopted by the Board
concurrently with its adoption of the Plan and as amended from time to time. 
 

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7.2    Nonstatutory Stock Options.  Unless otherwise provided for by the Board at the time an Option is granted, an Option designated as a “Nonstatutory Stock Option” shall comply
with and be subject to the terms and conditions set forth in the form of Immediately Exercisable Nonstatutory Stock Option Agreement adopted by the Board concurrently with its adoption of the Plan and as amended from time to time. 
 
7.3    Standard Term of
Options.  Except as otherwise provided in Section 6.2 or by the Board in the grant of an Option, any Option granted hereunder shall be exercisable for a term of ten (10) years. 
 
7.4    Authority to Vary
Terms.  The Board shall have the authority from time to time to vary the terms of any of the standard forms of Option Agreement described in this Section 7 either in connection with the grant or amendment of an individual Option or
in connection with the authorization of a new standard form or forms; provided, however, that the terms and conditions of any such new, revised or amended standard form or forms of Option Agreement are not inconsistent with the terms of the Plan.
Such authority shall include, but not by way of limitation, the authority to grant Options which are not immediately exercisable. 
 

	 	8.	 	Transfer of Control. 

 
8.1    Definitions. 
 
(a)    An “Ownership Change Event” shall be deemed to have occurred if
any of the following occurs with respect to the Company: 
 
(i)    the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty percent (50%) of the voting stock of the Company; 
 
(ii)    a merger or consolidation in
which the Company is a party; 
 
(iii)    the sale, exchange, or transfer of all or substantially all of the assets of the Company; or 
 
(iv)    a liquidation or dissolution of the Company. 
 
(b)    A “Transfer of Control” shall mean an Ownership Change Event or
a series of related Ownership Change Events (collectively, the “Transaction”) wherein the stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same
proportions as their ownership of shares of the Company’s voting stock immediately before the Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting
stock of the Company or the corporation or corporations to which the assets of the Company were transferred (the “Transferee Corporation(s)”), as the case may be. For purposes of the preceding sentence, indirect beneficial ownership
shall include, without limitation, an interest 

 

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resulting from ownership of the voting stock of one or more corporations which, as a result of the Transaction, own the Company or the
Transferee Corporation(s), as the case may be, either directly or through one or more subsidiary corporations. The Board shall have the right to determine whether multiple sales or exchanges of the voting stock of the Company or multiple Ownership
Change Events are related, and its determination shall be final, binding and conclusive. 
 
8.2    Effect of Transfer of Control on Options.  In the event of a Transfer of Control, the Board, in its sole discretion, may arrange with the surviving,
continuing, successor, or purchasing corporation or parent corporation thereof, as the case may be (the “Acquiring Corporation”), for the Acquiring Corporation to either assume the Company’s rights and obligations under
outstanding Options or substitute for outstanding Options substantially equivalent options for the Acquiring Corporation’s stock. The Company shall provide each Optionee holding an outstanding Option with at least ten (10) days advance written
notice of the pending Transfer of Control prior to the consummation thereof. Any Options which are neither assumed or substituted for by the Acquiring Corporation in connection with the Transfer of Control nor exercised as of the date of the
Transfer of Control shall terminate and cease to be outstanding effective as of the date of the Transfer of Control. Notwithstanding the foregoing, shares acquired upon exercise of an Option prior to the Transfer of Control and any consideration
received pursuant to the Transfer of Control with respect to such shares shall continue to be subject to all applicable provisions of the Option Agreement evidencing such Option except as otherwise provided in such Option Agreement. Furthermore,
notwithstanding the foregoing, if the corporation the stock of which is subject to the outstanding Options immediately prior to an Ownership Change Event described in Section 8.1(a)(i) constituting a Transfer of Control is the surviving or
continuing corporation and immediately after such Ownership Change Event less than fifty percent (50%) of the total combined voting power of its voting stock is held by another corporation or by other corporations that are members of an affiliated
group within the meaning of Section 1504(a) of the Code without regard to the provisions of Section 1504(b) of the Code, the outstanding Options shall not terminate unless the Board otherwise provides in its sole discretion. 
 
9.    Provision of
Information.  At least annually, copies of the Company’s balance sheet and income statement for the just completed fiscal year shall be made available to each Optionee and purchaser of shares of Stock upon the exercise of an
Option. The Company shall not be required to provide such information to persons whose duties in connection with the Company assure them access to equivalent information. 
 
10.    Nontransferability of Options.  During the lifetime of the
Optionee, an Option shall be exercisable only by the Optionee or the Optionee’s guardian or legal representative. No Option shall be assignable or transferable by the Optionee, except by will or by the laws of descent and distribution.
Notwithstanding the foregoing, a Nonstatutory Stock Option shall be assignable or transferable to the extent permitted by the Board and set forth in the Option Agreement evidencing such Option. 
 

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11.    Indemnification.  In addition to such other rights of indemnification as they may have as members of the Board or officers or employees of the Participating Company Group, members of
the Board and any officers or employees of the Participating Company Group to whom authority to act for the Board is delegated shall be indemnified by the Company against all reasonable expenses, including attorneys’ fees, actually and
necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with
the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any
such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties; provided, however,
that within sixty (60) days after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same. 
 
12.    Termination or Amendment of
Plan.  The Board may terminate or amend the Plan at any time. However, subject to changes in the law or other legal requirements that would permit otherwise, without the approval of the Company’s stockholders, there
shall be (a) no increase in the total number of shares of Stock that may be issued under the Plan (except by operation of the provisions of Section 4.2), (b) no change in the class of persons eligible to receive Incentive Stock Options, and (c) no
expansion in the class of persons eligible to receive Nonstatutory Stock Options. In any event, no termination or amendment of the Plan may adversely affect any then outstanding Option or any unexercised portion thereof, without the consent of the
Optionee, unless such termination or amendment is necessary to comply with any applicable law or government regulation. 
 
13.    Stockholder Approval.  The Plan or any increase in the maximum number of shares of
Stock issuable thereunder as provided in Section 4.1 (the “Maximum Shares”) shall be approved by the stockholders of the Company within twelve (12) months of the date of adoption thereof by the Board. Options granted prior to
stockholder approval of the Plan or in excess of the Maximum Shares previously approved by the stockholders shall become exercisable no earlier than the date of stockholder approval of the Plan or such increase in the Maximum Shares, as the case may
be. 
 
IN WITNESS WHEREOF, the undersigned Secretary of the Company
certifies that the foregoing Visigenic Software, Inc. 1995 Stock Option Plan was duly adopted by the Board on April 18, 1995 and amended on April 24 and June 17, 1996. 
 
 

	
	 	 	  

	 	 	 Glenn C. Myers, Secretary                        

 

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PLAN HISTORY 
 
 

	 April 18, 1995
	    	 Board adopts Plan, with an initial reserve of 1,500,000 shares.

	
	 June 6, 1995
	    	 Stockholders approve Plan, with an initial reserve of 1,500,000 shares.

	
	 April 24, 1996
	    	 Board amends plan to increase share reserve to 4,000,000 shares, to make certain other amendments required by
California Department of Corporations, and to confirm amendment delegating authority to officers to grant options.

	
	 June 17, 1996
	    	 Board amends plan to increase share reserve to 5,000,000 shares (2,500,000 after effect of 1:2 reverse split). Board
also adopts other amendments effective upon Section 12 registration of common stock.

	
	 August 1996
	    	 Stockholders approve amendment to plan to increase share reserve to 5,000,000 shares (2,500,000 after effect of 1:2
reverse split) and other changes to be effective upon Section 12 registration of common stock.

 

12Code of Ethical Business Conduct

Exhibit 10.28 
 
BORLAND SOFTWARE CORPORATION 
 
CODE OF ETHICAL BUSINESS CONDUCT FOR CHIEF EXECUTIVE AND 
SENIOR FINANCIAL OFFICERS (“SENIOR OFFICERS”) 
 
I,
                                        
                                , attest and certify that to the best of my knowledge,
I have engaged in no activity that would be in violation of the Borland Code of Ethical Business Conduct for Senior Officers. 
 
I have received and read the Code of Ethical Business Conduct for Senior Officers, and I understand its contents. I agree to comply fully with the
standards contained in this Code of Ethical Business Conduct for Senior Officers and the Company’s related policies and procedures. I understand that I have an obligation to report to the General Counsel and/or the Chairman of the Audit
Committee of the Board of Directors any suspected violations of the Code of Ethical Business Conduct for Senior Officers. 
 
Dated March             , 2003 
 
Signature
                                        
                                        
                                        
                         
 
 
Print Name
                                        
                                        
                                        
                     
 
 
Employee Number
                                        
                                        
                                        
         
 
 
To be signed and returned, either via hand or fax, no later than March 25, 2003 to: 
 
Keith E. Gottfried 
Senior Vice President – Law and Corporate Affairs 
General Counsel, Corporate Secretary, and Chief Legal
Officer 
Borland Software Corporation 
100 Enterprise Way 
Scotts Valley, CA 95066-3249 
 
Fax: 831-431-4171 
Tel: 831-431-4643 

 
 
 
 
 
 

Code of Ethical Business Conduct 
For Chief Executive and Senior 
Financial Officers 

 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 2003 
 

 
Code of
Ethical Business Conduct 
For Chief Executive and Senior Financial Officers 
Updated March 2003 
 
 
Generally 
 
Borland is committed to conducting our business in accordance with applicable laws, rules and regulations and the highest
standards of business ethics and to full and accurate financial disclosure in compliance with applicable laws, rules and regulations. This Code of Ethical Business Conduct, applicable to Borland’s Chief Executive Officer, Chief Financial
Officer and World Wide Controller (or persons performing similar functions) (together, “Senior Officers”), sets forth specific policies to guide you in the performance of your duties. 
 
As a Senior Officer, you must not only comply with applicable laws, rules and
regulations. You also have a responsibility to conduct yourself in an honest and ethical manner; and you have leadership responsibilities that include creating a culture of high ethical standards and commitment to compliance, maintaining a work
environment that encourages employees to raise concerns, and promptly addressing employee compliance concerns. 
 
The Company’s Code of Ethical Business Conduct, which this Code of Ethics is intended to supplement, sets forth the fundamental principles and key policies and procedures that govern the conduct
of all of us in our business. You are bound by the requirements and standards set forth in the Borland Code of Ethical Business Conduct, as well as those set forth in this Code of Ethics and other applicable policies and procedures. 
 
 
Compliance with Laws, Rules and Regulations 
 
The foundation on which Borland’s ethical standards are built is obeying the law. We respect and obey the laws of the cities, states and countries where we operate. Although not everyone is expected to know the details of those
laws, it is important for us to know enough to determine when we must get advice from a higher authority. Borland demands not only legal compliance but also responsible and ethical behavior. You are required to comply with all applicable laws, rules
and regulations governing the conduct of our business and to report any suspected violations of all applicable laws, rules and regulations to either the General Counsel and/or the Chairman of the Audit Committee. 
 
 
Fraud, Theft, Bribery and Similar Conduct 
 
Any act that involves theft, fraud, embezzlement, or misappropriation of any property, including that of the company or any of its employees, suppliers or customers, is prohibited. 

 
Offering or accepting
kickbacks or bribes are forbidden. They subvert competition and corrupt those involved. 
 
 
Auditors 
 
Fraudulently influencing, misleading, coercing or manipulating the auditor of Borland’s financial statements for the purpose of rendering those
financial statements materially misleading is prohibited. 
 
 
Revenue Recognition 
 
Senior Officers must ensure that all revenue transactions are completed, to the best of the Senior Officer’s knowledge, in accordance with
Borland’s revenue recognition policy 
 
All sales contracts
must be executed by an authorized official of the customer on or prior to the final day of the applicable quarter. 
 
All commitments or representations made to customers or potential customers must be included in the final contract with the customer or related
documentation submitted with customer orders. Employees must not make any commitments to the customer, verbally or in writing, that have not been documented in the agreement or order documentation submitted to the Borland finance and/or legal
departments. 
 
Side-letters or kickbacks with customers or
potential customers are prohibited. 
 
 
Disclosures 
 
As a public company, Borland is required to file various periodic and other reports with the Securities and Exchange Commission (SEC). It is Borland policy to make full, fair, accurate, timely and understandable disclosure in
compliance with all applicable laws and regulations in all reports and documents that Borland files with, or submits to, the SEC and in all other public communications made by Borland. As a Senior Officer, you are required to promote compliance with
this policy and to abide by all Borland standards, policies and procedures designed to promote compliance with this policy. 
 
 
Accurate Record Keeping 
 
While only a few of us are responsible for maintaining accounting records,
many employees help keep or contribute to Borland’s records. Every employee is responsible for maintaining accurate and complete records, including providing accurate and complete information to the accounting and the finance departments. No
false, misleading or artificial entries may be made on, or be provided for entry on, Borland’s books and records. No funds or assets may be maintained by Borland for any illegal or improper purposes. All transactions must be fully and
completely documented and recorded in Borland’s accounting 

records. It is against Borland policy to make entries that intentionally conceal or disguise the true
nature of any transaction. 
 
 
Conflicts of Interest 
 
It is the policy of Borland that you should avoid transactions, commitments, and other activities which are not in Borland’s best interest or which could involve an actual, or the appearance of a, conflict between your interests
and those of Borland. 
 
It is not possible to define all
situations that could involve a conflict of interest; in most instances, however, normal judgment should be sufficient to evaluate a situation. 
 
A conflict of interest exists when your loyalties are divided between Borland’s interests and your own interests, those of your family, or those of a
customer, supplier or competitor. You are expected to avoid both the fact and appearance of conflicts of interest. 
 
The prohibition against acting in a dual capacity in transacting Borland business, and from acquiring interests adverse to Borland, is applicable
irrespective of your intentions and without regard to whether the action caused, or has the potential to cause, injury to Borland. 
 
The following is presented as a guide in determining circumstances that might create conflicts of interest; they are not intended, however, to cover all
possible situations. 
 

	 	•	 	Conducting Borland company business with an immediate family member. 

 

	 	•	 	Representing Borland in any transaction if your personal interests might affect your ability to represent Borland’s interests fairly and impartially. You must
not knowingly or voluntarily permit yourself to be placed in a position where your interests may become adverse to Borland’s. You must not allow personal relationships with current or prospective customers or suppliers to influence business
decisions. 

 

	 	•	 	Investment by you or a member of your immediate family in a customer, supplier, or competitor (or any company/partnership affiliated with a customer, supplier, or
competitor) of Borland is prohibited if you have or would have the opportunity to influence business transactions between Borland and the customer, supplier, or competitor. Passive investments in publicly traded companies shall not be a violation if
you or a member of your immediate family owns less than 1% of such company’s outstanding stock. 

 

	 	•	 	You must not take for yourself nor direct to others any existing business nor any opportunities for prospective business which could be considered by Borland;

	 	•	 	You must not speculate or deal in materials, supplies, equipment or products which Borland buys or sells, or in property rights in which Borland may be interested;

 

	 	•	 	Solicitation or acceptance by you or a member of your immediate family of any personal loan or guarantee from a customer, supplier or competitor.

 
Before acting in a manner that creates or appears
to create a conflict of interest, you must make full disclosure to and obtain written approval of the General Counsel and/or the Audit Committee. 
 
 
Compliance with the Code. 
 
If you have questions about this Code of Ethical Business Conduct for Senior
Officers, you should seek guidance from the General Counsel. If you know of or suspect a violation of applicable laws or regulations or this Code of Ethical Business Conduct for Senior Officers, you must immediately report that information to the
General Counsel and/or to the Chairman of the Audit Committee of the Board of Directors. No one will be subject to retaliation because of a good faith report of a suspected violation. 
 
 
Policy Violations 
 
You must understand
and comply with Borland’s Code of Ethical Business Conduct for Senior Officers. Violations of this Code of Ethical Business Conduct for Senior Officers will not be tolerated and will result in discipline, up to and including discharge.

 
 
Waivers 
 
Waivers of the Code of Ethical
Business Conduct for Senior Officers must be disclosed to all Executive Officers and Directors. Waivers to this policy may only be granted by the non-employee members of the Borland Board of Directors. The Securities and Exchange Commission requires
all waivers to be disclosed publicly. 
 
 
No Rights Created 
 
This Code of Ethical Business Conduct is a statement of certain fundamental principles, policies and procedures that govern the Company’s Senior
Officers in the conduct of the Company’s business. It is not intended to and does not create any rights in any employee, customer, supplier, competitor, shareholder or any other person or entity.

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