Document:

Exhibit 10.1

Exhibit 10.1

SHARE EXCHANGE AGREEMENT

THIS SHARE EXCHANGE AGREEMENT (the “Agreement”), dated as of the 31st day of May, 2008, is entered into by and between ANGKOR WAT MINERALS LTD., a Cambodian company (“Target”) and ELRAY RESOURCES, INC., a Nevada corporation (“Purchaser”).

WHEREAS:

A.

Purchaser is a Nevada corporation in the business of mining exploration;

B.

Target is a Cambodian company in the business of mining exploration;

C.

Purchaser desires to purchase from Target securityholders (the “Target Securityholders”) all Target securities owned by Target Securityholders (the “Target Securities”) in exchange for shares of the common stock of Purchaser;

D.

The respective boards of directors of Purchaser and Target have approved the acquisition of Target by Purchaser on the terms and subject to the conditions set forth in this Agreement (the “Acquisition”);

E.

The board of directors of Target is recommending that Target Securityholders accept the offer set forth in this Agreement; 

F.

Purchaser, Target and Target Securityholders intend that the transactions contemplated by this Agreement will constitute a tax-free “reorganization” under the U.S. Internal Revenue Service Regulations and that all the terms and provisions herein be interpreted, construed and enforced to effectuate this intent; and

G.

Purchaser is a United States Securities and Exchange Commission reporting issuer and its shares are approved for quotation and trading on the OTC Bulletin Board.

NOW, THEREFORE, in consideration of the mutual benefits to be derived and the representations and warranties, conditions, covenants and agreements herein contained, and intending to be legally bound hereby, the parties agree as. follows:

ARTICLE 1

THE OFFER

1.1

The Offer. Subject to the terms and conditions of this Agreement (any of which may be waived by Purchaser in its sole discretion), Purchaser offers to purchase all the issued and outstanding shares of Target (the “Offer”). 

1.2

Target Actions.­ Target hereby approves of and consents to the Offer and the Acquisition and represents that the board of directors of Target, at a meeting duly called and held, duly and unanimously adopted resolutions approving this Agreement, the Offer and the Acquisition, determining that the terms of the Offer and the Acquisition are fair to, and in the best interests of, the Target Securityholders and recommending that the Target Securityholders approve and adopt this Agreement, accept the Offer and tender the Target Securities pursuant to the Offer. 

ARTICLE 2

THE ACQUISITION

2.1

The Acquisition. Upon the terms and subject to the conditions set forth in this Agreement, at the Closing (as hereafter defined), Purchaser shall issue 30,000,000 shares of the common stock of Purchaser (the “Exchange Shares”) to the Target Securityholders on a pro rata basis. 

2.2

Dissenting Shares. Purchaser shall have the right, but not the obligation, to take such actions as are necessary or appropriate under applicable law to acquire the Target Securities of Target Securityholders who do not accept the Offer and validly tender their Target Securities pursuant thereto. 

2.3

The Closing. The closing of the Acquisition (the “Closing”) shall take place at 2:00 p.m. on July 15, 2008 (the “Closing Date”) at such place as the parties shall agree, unless another date is agreed to in writing by the parties.

ARTICLE 3

COVENANTS, REPRESENTATIONS AND WARRANTIES OF PURCHASER

3.1

Covenants, Representations and Warranties. Purchaser covenants, represents and warrants in favour of Target that:

(a)

it is a corporation duly incorporated under the laws of the State of Nevada and that it is a valid, subsisting corporation in good standing under all of the applicable corporate or other laws, and that it is unrestricted in its right to enter into this Agreement;

(b)

its books and records, financial and otherwise, are and have been properly prepared and maintained in form and substance adequate for preparing audited financial statements in accordance with generally accepted accounting principles, and fairly and accurately reflect all of its assets, obligations and accruals, and all transactions (normally reflected in books and records in accordance with generally accepted accounting principles) to which it is or was a party or by which it or any of its assets are or were affected;

(c)

the execution, delivery and performance by Purchaser of this Agreement and the consummation by Purchaser of the transactions contemplated hereby do not require any consent that has not been received prior to the date hereof;

(d)

its authorized and issued capital is, at the date of this Agreement, 75,000,000 common shares, with a par value of $0.001 per share, of which 56,437,500 are issued and outstanding;

(e)

the financial statements of Purchaser dated as of March 31, 2008 (the “Purchaser’s Financial Statements”), copies of which have been delivered to Target, fully, fairly and accurately represent the financial affairs and condition of Purchaser as of the said date, and no material adverse changes have occurred in or to the condition of Purchaser or its financial position since March 31, 2008;

(f)

Shaun D. Langford is the sole officer and director of Purchaser; Mr. Langford has no employment contract with Purchaser and is not owed any money by Purchaser for salary, consulting fees, shareholder loans or otherwise;

(g)

it will not, prior to the Closing, without the prior written consent of Target, enter into any agreements which shall require it to issue any shares, or securities convertible to shares, in its capital, or to acquire any assets, or to assume or incur any debts or other obligations, except as would be required in the normal course to satisfy its obligations under this Agreement;

(h)

it has no liabilities, due or accruing due, contingent or absolute, liquidated or unliquidated, of any kind except

(i)

liabilities disclosed or provided for in the Purchaser’s Financial Statements,  

(ii)

liabilities incurred in the ordinary course of business since the date of the Purchaser’s Financial Statements, which are consistent with past practice and are not, in the aggregate, material and adverse to the business of Purchaser, or to the financial condition or results of the Purchaser; 

(i)

the Exchange Shares will, when issued, be validly issued as fully paid and non-assessable and free and clear of all encumbrances;

(j)

the issuance of the Exchange Shares will be effected in such a manner as to be exempt from registration under the Securities Act of 1933 (the “Securities Act”) and all applicable state securities or blue sky laws;

(k)

there is no basis for and there are no actions, suits, judgments, investigations or proceedings outstanding or pending, or to the knowledge of Purchaser, threatened against or affecting Purchaser or any of its property or assets at law or in equity or before or by any court or federal, state, municipal or other governmental authority, department, commission, board, tribunal, bureau or agency; and 

(l)

to the best of its knowledge, there are no orders ceasing or suspending trading in the securities of Purchaser and no proceedings for this purpose have been instituted or are pending or threatened.

ARTICLE 4

COVENANTS, REPRESENTATIONS AND WARRANTIES OF TARGET

4.1

Covenants, Representations and Warranties. Target covenants, represents and warrants in favour of Purchaser that:

(a)

Target is a corporation duly incorporated under the laws of Cambodia, and it is valid, subsisting and in good standing pursuant to all of the applicable corporate or other laws applicable to it, and that it is unrestricted in its right to enter into this Agreement;

(b)

Target is the sole legal and beneficial owner of all its assets, free and clear of all liens, charges and encumbrances whatsoever;

(c)

Target’s books and records, financial and otherwise, are and have been properly prepared and maintained in form and substance adequate for preparing audited financial statements in accordance with generally accepted accounting principles, and fairly and accurately reflect all of Target’s assets, obligations and accruals, and all transactions (normally reflected in books and records in accordance with generally accepted accounting principles) to which Target is or was a party or by which Target or any of its assets are or were affected;

(d)

the execution, delivery and performance by Target of this Agreement and the consummation by Target of the transactions contemplated hereby do not require any consent that has not been received prior to the date hereof;

(e)

it is not subject to any agreements, judgments or orders of any nature or kind whatsoever which would require it to issue any shares in its capital other than the voting common shares in its capital which are either issued and outstanding or are due to be issued to the Target Securityholders;

(f)

each of the Target Securityholders owns and has good and marketable title to all of the Target Securities held by him as the legal and beneficial owner thereof, free and clear of all encumbrances and such securities have been duly and validly issued and, with respect to the shares, are outstanding as fully paid and non-assessable shares in the capital of the Target;

(g)

the financial statements of Target dated as of December 31, 2007 (the “Target’s Financial Statements”), fully, fairly and accurately represent the financial affairs and condition of Target as of the said date, and no material adverse changes have occurred in or to the condition of Purchaser or its financial position since December 31, 2007;

(h)

it has no liabilities, due or accruing due, contingent or absolute, liquidated or unliquidated, of any kind except

(i)

liabilities disclosed or provided for in the Target’s Financial Statements,  

(ii)

liabilities incurred in the ordinary course of the business since the date of the Target’s Financial Statements, which are consistent with past practice and are not, in the aggregate, material and adverse to the business of Target, or to the financial condition or results of the Target; 

(i)

no person, firm or corporation will have, immediately prior to the Closing Date, any agreement, warrant or option, or any right capable of becoming an agreement, warrant or option, for the purchase of any unissued shares in the capital of Target or any securities convertible into such shares;

(j)

Target is duly authorized by its board of directors  to execute and deliver this Agreement and this Agreement is a valid and binding agreement, enforceable against Target in accordance with its terms except as limited by laws of general application affecting the rights of creditors; and 

(k)

there is no basis for and there are no actions, suits, judgments, investigations or proceedings outstanding or pending, or to the knowledge of Target, threatened against or affecting Target or any of its property or assets at law or in equity or before or by any court or federal, state, municipal or other governmental  authority, department, commission, board, tribunal, bureau or agency.

ARTICLE 5

CONDUCT AND TRANSACTIONS PRIOR TO CLOSING, AFTER CLOSING

5.1

Access to Records and Properties.

(a) 

Of Target. Target shall give Purchaser and Purchaser’s counsel, accountants, lenders and their respective employees, agents and representatives such access (during normal business hours) to, and opportunity to examine, the books, records, files, documents, properties and assets of Target, and cause the officers, directors, employees, agents, representatives, legal counsel, accounts and auditors of Target to furnish such financial and operating data and other information, as Purchaser shall from time to time reasonably request. Any investigation pursuant to this Section 5.1 shall be conducted in such manner as not to interfere unreasonably with the ordinary course of the business and operations of Target or with the confidentiality respecting the transactions contemplated by this Agreement.

(b) 

Of Purchaser. Purchaser shall give Target and Target’s counsel, accountants, lenders and their respective employees, agents and representatives such access (during normal business hours) to, and opportunity to examine, the books, records, files, documents, properties and assets of Purchaser, and cause the officers, directors, employees, agents, representatives, legal counsel, accounts and auditors of the Purchaser to furnish such financial and operating data and other information, as Target shall from time to time reasonably request. Any investigation pursuant to this Section 5.1 shall be conducted in such manner as not to interfere unreasonably with the ordinary course of the business and operations of the Purchaser or with the confidentiality respecting the transactions contemplated by this Agreement.

5.2

Activities Prior to Closing.

(a) 

Operation of Target. From the date of this Agreement to the Closing Date, except to the extent that Purchaser shall consent in writing, Target shall operate its business in the ordinary course of business consistent with recent past practice. Without limiting the generality of the foregoing, Target shall:

(i)

not merge or consolidate with any other entity or acquire any other business or entity;

(ii)

notify Purchaser of any significant loss of, damage to or destruction of any of its material properties or assets;

(iii)

maintain in full force and effect all present insurance coverage and apply the proceeds received under any such coverage as a result of any loss of, damage to or destruction of any properties or assets to the repair, restoration or replacement thereof;

(iv) 

use its reasonable efforts to preserve the present managerial employees, reputation and business relationships of Target with persons and entities having business dealings with them; and

(v) 

refrain from taking any action which (if not remedied) would render any representation and warranty contained in Article 4 inaccurate at and as of the Closing Date., and shall promptly advise Purchaser of any such event or circumstance.

(b) 

Operation of Purchaser. From the date hereof to the Closing Date, except to the extent that Target shall consent in writing, Purchaser shall not conduct business activities.

5.3

Best Efforts to Satisfy Conditions. Purchaser and Target shall use their best efforts to satisfy the conditions to the Closing set forth in Article 6 of this Agreement, to the extent that the satisfaction of such conditions is in the control of such party, as soon as practicable after the date hereof; provided, however, the foregoing shall not constitute a limitation upon the covenants and obligations of any party otherwise expressly set forth in this Agreement.

5.4 

Board of Directors and Officers. Upon the Closing, Purchaser’s Board of Directors and officers shall resign in favour of nominees of Target. 

ARTICLE 6.

CONDITIONS OF CLOSING

6.1

Conditions to Obligations of Purchaser. The obligations of Purchaser to consummate the transactions contemplated by this Agreement are subject to the satisfaction of the following conditions, each of which may be waived by Purchaser:

(a)

Representations and Warranties: Performance of Obligations. The representations and warranties of Target set forth in this Agreement shall be true and correct in all materials respects on the Closing Date as though made on and as of the Closing Date. Target shall have performed the agreements and obligations required to be performed by it under this Agreement prior to the Closing Datc. 

(b)

Legal Restraints. There shall not have been proposed or enacted any law, or any change in any existing law, which prohibits or delays, or threatens to prohibit or delay, the consummation of any of the transactions contemplated by this Agreement or which could reasonably have a material adverse effect thereon.

(c)

Compliance With Securities Matters. Purchaser shall have received evidence satisfactory to Purchaser’s counsel that the transactions contemplated by this Agreement shall qualify for exemptions from registration with respect to all applicable federal, state and provincial securities laws.

(d)

Delivery of Financial Statements. Target will deliver to Purchaser the Target’s Financial Statements, which shall include audited financial statements for Target’s last two fiscal years, prepared in accordance with U.S. GAAP and audited by an independent auditor registered with the Public Company Accounting Oversight Board in the United States.

(e)

Legal Opinion. Target will deliver to Purchaser on the Closing Date an opinion of Target’s legal counsel, addressed to Purchaser’s legal counsel, in form satisfactory to Purchaser’s counsel that:

(i)

Target is duly organized and validly existing under the laws of Cambodia and is in good standing with respect to the filing of annual reports; 

(ii)

all necessary steps and corporate proceedings have been taken to permit the Target Securities to be duly and validly transferred to and registered in the name of Purchaser; and

(iii)

all Target securities are duly authorized, validly issued and outstanding as fully paid and non-assessable.

6.2

Conditions to Obligations of Target. The obligations of Target to consummate the transactions contemplated by this Agreement are subject to the satisfaction of the following conditions, each of which may be waived by Target:

(a) 

Representations and Warranties: Performance of Obligations. The representations and warranties of Purchaser set forth in this Agreement shall be true and correct in all material respects on the Closing Date as though made on and as of the Closing Date. Purchaser shall have performed the agreements and obligations required to be performed by it under this Agreement prior to the Closing Date. 

(b) 

Legal Restraints. There shall not have been proposed or enacted any law, or any change in any existing law, which prohibits or delays, or threatens to prohibit or delay, the consummation of the transactions contemplated by this Agreement or which could reasonably have a material adverse effect thereon.

(c)

Exchange Shares. Purchaser shall have delivered to the Target Securityholders the Exchange Shares in the manner provided in Section 2.1 of this Agreement. Purchaser may issue the Exchange Shares in reliance upon Regulation S or Regulation D under the Securities Act and such issuance will not violate the registration requirements of the Securities Act.

(d)

Surrender of Shares. Shaun D. Langford, President of Purchaser, shall surrender 30,000,000 shares of the common stock of Purchaser for cancellation on the Closing. 

(e) 

Compliance With Securities Matters. The transactions contemplated by this Agreement shall, in the opinion of counsel for Target, qualify for exemptions from. registration with respect to all applicable federal, state and provincial securities laws.

(f)

Compliance With Rule 14(f)(1). Purchaser shall have complied with Rule 14(f)(1) of the Securities and Exchange Act of 1934, if required. 

(g)

Legal Opinion. Purchaser will deliver to Target on the Closing Date one or more legal opinions, addressed to Target’s legal counsel, in form satisfactory to Target’s legal counsel that:

(i)

Purchaser is duly organized and validly existing under the laws of the State of Nevada and is in good standing with the Secretary of State of Nevada; 

(ii)

all necessary steps and corporate proceedings have been taken to permit the Exchange Shares to be duly and validly issued to and registered in the name of the Target Securityholders; and

(iii)

the number of authorized and issued shares in the capital of the Purchaser is as warranted by Purchaser and all issued shares are duly authorized, validly issued and outstanding as fully paid and non-assessable. 

ARTICLE 7

TERMINATION

7.1

Termination of Agreement.

(a) 

By Purchaser. This Agreement may be terminated by Purchaser, upon notice to Target, if: (i) the Closing shall not have occurred on the Closing Date, for any reason whatsoever, other than a material breach by Purchaser; (ii) Target shall have breached any representation, warranty or covenant of this Agreement, whether or not such breach is susceptible of cure; or (iii) the results of Purchaser’s due diligence review shall not be satisfactory to Purchaser, in its sole discretion.

(b) 

By Target. Target may terminate this Agreement, upon notice to Purchaser, only in the event of a material breach by Purchaser of any representation, warranty or covenant of Purchaser set forth in this Agreement that is not cured by Purchaser within thirty (30) days of the giving of notice of such breach.

(c)

By Purchaser and Target. Purchaser and Target may terminate this Agreement at any time before Closing by mutual agreement. 

(d) 

Effect of Termination. Termination of this Agreement under this Section shall automatically and irrevocably terminate all liabilities and obligations of the terminating party arising under this Agreement. All rights of the terminating party arising under this Agreement, and all liabilities and obligations of the other party or parties hereto, shall survive any such termination.

ARTICLE 8

MISCELLANEOUS

8.1

Further Actions. The parties shall execute and deliver (or cause to be executed and delivered) such other and further documents and instruments and shall take (or cause to be taken) such other and further actions as any other party may reasonably request in order to effect and/or evidence the transactions contemplated by this Agreement or to otherwise consummate and give effect to the covenants and agreements set forth herein.

8.2

Entire Agreement. This Agreement contains the entire agreement between Target and Purchaser with respect to the subject matter hereof and supersedes all prior agreements, arrangements and understandings with respect thereto.

8.3

Notices. All communications, notices, requests, consents or demands given or required under this Agreement shall be in writing and shall be deemed to have been duly given when delivered to, or received by, prepaid registered or certified mail or recognized overnight courier addressed to, or upon receipt of a facsimile sent to, the party for whom intended as follows, or to such other address or facsimile number as may be furnished by such party by notice in the manner provided herein:

If to the Target Securityholders and Target:

 

Angkor Wat Minerals Ltd. 

Attn.: Michael Malbourne

#Co3 – Borey Supheak Monkul,

Highway 6, Sangkat Chroy Changwa,

Khan Russey Keo, Phnom Penh, Cambodia 

 

If to Elray:

 

Elray Resources, Inc. 

Attn.: Shaun D. Langford

2678 Point Grey Rd. 

Vancouver, British Columbia, Canada V6K 1A5

 

Any party may, by notice, change the address or telecopier number to which notices or other communications to it are to be delivered, telecopied or sent.

8.4

Governing Law. This Agreement shall be interpreted according to the laws of the Province of British Columbia and the laws of Canada applicable therein, and the parties agree that they shall be subject to the jurisdiction and authority of the courts of the Province of British Columbia.

8.5

Waivers and Amendments. Any waiver of any term or condition of this Agreement, or any amendment or supplementation of this Agreement, shall be effective only if in writing and executed by each of the parties hereto. A waiver of any breach or failure to enforce any of the terms or conditions of this Agreement shall not in any way affect, limit or waive a party’s rights hereunder at any time to enforce strict compliance with every term and condition of this Agreement.

8.6

Illegalities. In the event that any provision contained in this Agreement shall be determined to be invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect, and the remaining provisions of this Agreement, shall not, at the election of the party for whose benefit the provision exists, be in any way impaired.

8.7

Counterparts. This Agreement may be executed in any number of counterparts, and by facsimile, and each such counterpart shall be deemed to be an original instrument, but all such counterparts. together shall constitute but one agreement.

8.8

Enurement. This Agreement shall enure to the benefit of and be binding upon the parties and their respective heirs, successors, administrators and assigns.

THE PARTIES INTENDING TO BE LEGALLY BOUND have executed this Agreement as of the date first above written.

ELRAY RESOURCES, INC.

ANGKOR WAT MINERALS LTD. 

By: /s/ Shaun D. Langford

By. /s/ Michael Malbourne

Name:Shaun D. Langford

Name: Michael Malbourne

Title: President

    Title: Company SecretaryEX-10.87

August 12, 2008

Dave Packer

Re: Separation Agreement

Dear Dave,

As we have discussed, your employment will be terminating. This letter sets forth the terms of
the separation agreement (the “Agreement”) that Company is offering to you to aid in your
employment transition.

1. Separation. Your last day of work with the Company and your employment termination date
will be August 15, 2008 (the “Separation Date”). From now until the Separation Date, you will
remain employed during a transition period in order to assist the Company with the orderly
transition of your work responsibilities and pending projects. During this time, you will be
required to continue to abide by the Company’s regular policies and procedures, you will be
expected to continue to work diligently and on a full-time basis, and you will be paid your regular
base salary. In the event that you fail to meet these obligations, or engage in any other
misconduct, the Company may accelerate the Separation Date.

a. If you resign, or Borland terminates your employment for cause (as defined below),
before the Separation Date, you will not be eligible for any portion of the Severance Package
(as defined herein). (You will, however, remain eligible for the Severance Package if Borland
terminates your employment without cause prior to the Separation Date.)

b. For purposes of this agreement, “cause” shall mean termination of your employment with
Borland for any of the following reasons: (i) theft, embezzlement, misconduct, misappropriation
of funds or property, or fraud against or with respect to the business of Borland; (ii) breach
by you of any material term of any agreement between you and Borland; (iii) your conviction of
any crime that impairs your performance of duties for Borland; (iv) as a result of your reckless
or willful misconduct, you commit any act that causes material injury to the financial condition
or business reputation of Borland, or you knowingly fail to take reasonable and appropriate
actions to prevent the same; or (v) after written notice to you, and a reasonable opportunity to
correct, you fail to satisfactorily perform your job duties, or otherwise fail to perform any of
your assigned duties for Borland.

2. Accrued Salary And Paid Time Off. On the Separation Date, the Company will pay you all
accrued salary, and all accrued and unused vacation earned through the Separation Date, subject to
standard payroll deductions and withholdings. To the extent you are entitled to commissions under
the Company’s commission plans, the Company will also pay you such amounts pursuant to the terms
and conditions set forth in the commission plan(s).

3. Severance. Although the Company has no obligation to do so, if you timely enter into this
Agreement and, on or timely after the Separation Date, you sign, date and return to the Company the
Separation Date Release attached hereto as Exhibit A, then the Company will provide you with the
payments and benefits set forth below as your sole severance benefits (the “Severance Package”):

a. Lump Sum Severance Payment. The Company will pay you, as severance, $150,000 which is
equivalent to 26 weeks of your base salary in effect as of the Separation Date, subject to standard
payroll deductions and withholdings, payable within ten (10) business days after the Effective Date
of the Separation Date Release (as defined in Exhibit A).

b. Additional Severance Payment. Under the terms of Borland’s FY2008 Incentive Compensation
Program (the “Program”), you are not eligible for any further ICP payments (including payments for
the first or second quarter of 2008) because your employment is being terminated prior to the
payout date(s).  Nevertheless, your first quarter ICP bonus is guaranteed to payout at 100% of
target and, if the bonus for the second quarter of 2008 is funded under the terms of the Program,
then, as part of the Severance Package, the Company will make an additional severance payment to
you in the amount equal to 100% of the second quarter target bonus.  Both of these amounts will be
paid on or around August 22, 2008 through the normal ICP process, will be mailed to your address of
record, and will be subject to standard payroll deductions and withholdings.

c. Health Insurance. You will continue to receive health insurance benefits under the
Company’s group plans, as currently enrolled, through the last day of the month in which you
terminate. To the extent provided by the federal COBRA law or, if applicable, state insurance
laws, and by the Company’s current group health insurance policies (collectively, “COBRA”), you
will be eligible to continue your group health insurance benefits at your own expense following the
Separation Date. Later, you may be able to convert to an individual policy through the provider of
the Company’s health insurance, if you wish. You will be provided with a separate notice
describing your rights and obligations under COBRA on or after the Separation Date. If you timely
elect continued group health insurance coverage through COBRA, in accordance with your employment
agreement, the Company, as part of this Agreement shall pay COBRA premiums necessary to continue in
the group plans, as currently enrolled, (medical, dental, vision and employee assistance program)
for Employee and his dependents through August 31, 2009, or the date which Employee first becomes
enrolled in a new group health insurance program with another employer, whichever first occurs.
Employee agrees to promptly notify the Borland Benefits Department by emailing
HR.Benefits@borland.com, in the event that he becomes enrolled in a new group health
insurance program.

4. Stock Options. Under the terms of your stock option agreement and the applicable plan
documents, vesting of your stock options will cease as of the Separation Date. Your right to
exercise any vested shares, and all other rights and obligations with respect to your stock
options(s), will be as set forth in your stock option agreement, grant notice and applicable plan
documents.

5. Other Compensation or Benefits. You acknowledge that, except as expressly provided in this
Agreement, you will not earn or receive any compensation, including without limitation salary,
bonus, commissions, or severance, or any benefits before or after the Separation Date, with the
exception of any vested right you may have under the express terms of a written ERISA-qualified
benefit plan (e.g., 401(k) account) or any vested option shares.

6. Expense Reimbursements. You agree that, within ten (10) days after the Separation Date, you
will submit your final documented expense reimbursement statement reflecting all business expenses
you incurred through the Separation Date, if any, for which you seek reimbursement. The Company
will reimburse you for these expenses pursuant to its regular business practice.

7. Return of Company Property. On the Separation Date, or earlier if requested by the
Company, you agree to return to the Company all Company documents (and all copies thereof) and
other Company property that you have in your possession or control, including, but not limited to,
Company products, samples, engineering materials, demo equipment, files, notes, drawings, records,
business plans and forecasts, financial information, specifications, computer-recorded information,
tangible property (including, but not limited to, computers and cellular phone), credit cards,
entry cards, identification badges and keys; and, any materials of any kind that contain or embody
any proprietary or confidential information of the Company (and all reproductions thereof). You
agree that you will make a diligent search to locate any such documents, property and information
on the Separation Date. In addition, if you have used any personally owned computer, server, or
e-mail system to receive, store, review, prepare or transmit any Company confidential or
proprietary data, materials or information, then on the Separation Date, you shall provide the
Company with a computer-useable copy of such information and then permanently delete and expunge
such Company confidential or proprietary information from those systems; and you agree to provide
the Company access to your system as requested to verify that the necessary copying and/or deletion
is done. Your timely compliance with this paragraph is a condition precedent to your receipt of
the Severance Package.

8. Proprietary Information Obligations. You acknowledge, reaffirm, and agree to abide by your
continuing obligations under your Proprietary Information and Inventions Agreement, a copy of which
is attached hereto as Exhibit B.

9. Confidentiality. The provisions of this Agreement will be held in strictest confidence by
you and the Company and will not be publicized or disclosed in any manner whatsoever; provided,
however, that: (a) you may disclose this Agreement in confidence to your immediate family; (b) the
parties may disclose this Agreement in confidence to their respective attorneys, accountants,
auditors, tax preparers, and financial advisors; (c) the Company may disclose this Agreement as
necessary to fulfill standard or legally required corporate reporting or disclosure requirements;
and (d) the parties may disclose this Agreement insofar as such disclosure may be necessary to
enforce its terms or as otherwise required by law. In particular, and without limitation, you
agree not to disclose the terms of this Agreement to any current or former Company employee.

10. Nondisparagement. You agree not to disparage the Company, its officers, directors,
employees, shareholders, and agents, in any manner likely to be harmful to its or their business,
business reputation, or personal reputation; provided that you will respond accurately and fully to
any question, inquiry or request for information when required by legal process.

11. No Admissions. You understand and agree that the promises and payments in consideration
of this Agreement shall not be construed to be an admission of any liability or obligation by the
Company to you or to any other person, and that the Company makes no such admission.

12. No Voluntary Adverse Action; Cooperation. You agree that you will not voluntarily assist
any person in preparing, bringing, or pursuing any litigation, arbitration, administrative claim or
other formal proceeding against the Company, its parents, subsidiaries, affiliates, distributors,
officers, directors, employees or agents, unless pursuant to subpoena or other compulsion of law.
Further, you agree to voluntarily cooperate with the Company if you have knowledge of facts
relevant to any threatened or pending claims or litigation against the Company by making yourself
reasonably available without further compensation for interviews with the Company’s counsel, for
preparing for and providing deposition testimony, and for preparing for and providing trial
testimony.

13. Release of Claims. In exchange for the consideration under this Agreement to which you
would not otherwise be entitled, you hereby generally and completely release the Company and its
directors, officers, employees, shareholders, partners, agents, attorneys, predecessors,
successors, parent and subsidiary entities, insurers, affiliates, and assigns from any and all
claims, liabilities and obligations, both known and unknown, that arise out of or are in any way
related to events, acts, conduct, or omissions occurring at any time prior to and including the
date you sign this Agreement. This general release includes, but is not limited to: (a) all claims
arising out of or in any way related to your employment with the Company or the termination of that
employment; (b) all claims related to your compensation or benefits from the Company, including
salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits,
stock, stock options, or any other ownership interests in the Company; (c) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing;
(d) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in
violation of public policy; and (e) all federal, state, and local statutory claims, including
claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under
the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of
1990, the California Labor Code (as amended), the California Fair Employment and Housing Act (as
amended) and any other federal, state or local statute or regulation. Notwithstanding the
foregoing, you are not hereby releasing the Company from any obligation it may otherwise have to
indemnify you for your acts within the course and scope of your employment with the Company,
pursuant to the articles and bylaws of the Company, any fully executed written agreement with the
Company, or applicable law. Further, notwithstanding the foregoing, nothing in this Agreement
shall prevent you from filing, cooperating with, or participating in any proceeding before the
Equal Employment Opportunity Commission, the Department of Labor, the California Department of Fair
Employment and Housing or any other state anti-discrimination agency, except that you acknowledge
and agree that you shall not recover any monetary benefits in connection with any such claim,
charge or proceeding with regard to any claim released herein. You represent that you have no
lawsuits, claims or actions pending in your name, or on behalf of any other person or entity,
against the Company or any other person or entity subject to the release granted in this paragraph.

14. Section 1542 Waiver. In granting the release herein, which includes claims which may be
unknown to you at present, you acknowledge that you have read and understand Section 1542 of the
California Civil Code: “A general release does not extend to claims which the creditor does not
know or suspect to exist in his or her favor at the time of executing the release, which if known
by him or her must have materially affected his or her settlement with the debtor.” You hereby
expressly waive and relinquish all rights and benefits under that section and any law or legal
principle of similar effect in any jurisdiction with respect to the releases granted herein,
including but not limited to the release of unknown and unsuspected claims granted in this
Agreement.

15. Dispute Resolution. To ensure rapid and economical resolution of any disputes regarding
this Agreement, the parties hereby agree that any and all claims, disputes or controversies of any
nature whatsoever arising out of, or relating to, this Agreement, or its interpretation,
enforcement, breach, performance or execution, your employment with the Company, or the termination
of such employment, shall be resolved, to the fullest extent permitted by law, by final, binding
and confidential arbitration in San Jose, CA conducted before a single arbitrator by JAMS, Inc.
(“JAMS”) or its successor, under the then applicable JAMS arbitration rules. The parties each
acknowledge that by agreeing to this arbitration procedure, they waive the right to resolve any
such dispute, claim or demand through a trial by jury or judge or by administrative proceeding.
You will have the right to be represented by legal counsel at any arbitration proceeding. The
arbitrator shall: (i) have the authority to compel adequate discovery for the resolution of the
dispute and to award such relief as would otherwise be available under applicable law in a court
proceeding; and (ii) issue a written statement signed by the arbitrator regarding the disposition
of each claim and the relief, if any, awarded as to each claim, the reasons for the award, and the
arbitrator’s essential findings and conclusions on which the award is based. The arbitrator, and
not a court, shall also be authorized to determine whether the provisions of this paragraph apply
to a dispute, controversy, or claim sought to be resolved in accordance with these arbitration
procedures. Nothing in this Agreement is intended to prevent either you or the Company from
obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any
arbitration.

16. Miscellaneous. This Agreement, including Exhibit A and Exhibit B, constitutes the
complete, final and exclusive embodiment of the entire agreement between you and the Company with
regard to its subject matter. It is entered into without reliance on any promise or
representation, written or oral, other than those expressly contained herein, and it supersedes any
other such promises, warranties or representations. This Agreement may not be modified or amended
except in a writing signed by both you and a duly authorized officer of the Company. This
Agreement will bind the heirs, personal representatives, successors and assigns of both you and the
Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns.
If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in
part, this determination will not affect any other provision of this Agreement and the provision in
question will be modified so as to be rendered enforceable. This Agreement will be deemed to have
been entered into and will be construed and enforced in accordance with the laws of the State of
California as applied to contracts made and to be performed entirely within California. Any
ambiguity in this Agreement shall not be construed against either party as the drafter. Any waiver
of a breach of this Agreement shall be in writing and shall not be deemed to be a waiver of any
successive breach. This Agreement may be executed in counterparts and facsimile signatures will
suffice as original signatures.

If this Agreement is acceptable to you, please sign below and return the original to me on or
before fourteen (14) calendar days from the date you receive this Agreement. The offer
contained in this Agreement will automatically expire if we do not receive the fully executed
Agreement from you by the aforementioned date. Do not sign the Separation Date Release attached as
Exhibit A until on or within forty-five (45) calendar days after the Separation Date.

Please contact me if you have any questions about this Agreement or the matters discussed herein,
including the planned termination of your employment. My work address and phone number are
contained above. We look forward to continuing to work with you during the transition period and
wish you the best in your future endeavors.

Sincerely,

Borland Software Corporation

By: /s/ Jonathan Schoonmaker

Jonathan Schoonmaker

Senior Vice President, Corporate Services

I have read, understand and agree fully to the foregoing Agreement:

/s/ Dave Packer

Dave Packer

Date: August 15, 2008

Exhibit A – Separation Date Release

Exhibit B – Proprietary Information and Inventions Agreement

1

Exhibit A

SEPARATION DATE RELEASE

(To be signed on or within forty-five (45) days after the Separation Date.)

In exchange for the Severance Package to be provided to me by Borland Software Corporation
(the “Company”) pursuant to the separation agreement between me and the Company dated (the
“Agreement”), I hereby provide the following Separation Date Release (the “Release”).

I hereby generally and completely release the Company, its parent, and its and their
directors, officers, employees, shareholders, partners, agents, attorneys, predecessors,
successors, parent and subsidiary entities, insurers, affiliates, and assigns from any and all
claims, liabilities and obligations, both known and unknown, arising out of or in any way related
to events, acts, conduct, or omissions occurring at any time prior to or on the date that I sign
this Release. This general release includes, but is not limited to: (1) all claims arising out of
or in any way related to my employment with the Company or the termination of that employment; (2)
all claims related to my compensation or benefits from the Company, including salary, bonuses,
commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock
options, or any other ownership or equity interests in the Company; (3) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing;
(4) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in
violation of public policy; and (5) all federal, state, and local statutory claims, including
claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under
the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of
1990, the California Labor Code (as amended), and the California Fair Employment and Housing Act
(as amended). Notwithstanding the foregoing, I am not releasing the Company hereby from any
obligation to indemnify me for my acts within the course and scope of my employment with the
Company, pursuant to the articles and bylaws of the Company, any fully executed written agreement
with the Company, or applicable law. Further, notwithstanding the foregoing, nothing in this
Release shall prevent me from filing, cooperating with, or participating in any proceeding before
the Equal Employment Opportunity Commission, the Department of Labor, the California Department of
Fair Employment and Housing or any other state anti-discrimination agency, except that I
acknowledge and agree that I shall not recover any monetary benefits in connection with any such
claim, charge or proceeding with regard to any claim released herein. I represent that I have no
lawsuits, claims or actions pending in my name, or on behalf of any other person or entity,
against the Company or any other person or entity subject to the release granted in this
paragraph.

I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may
have under the ADEA, and that the consideration given for the waiver and release in the preceding
paragraph is in addition to anything of value to which I am already entitled. I further
acknowledge that I have been advised by this writing that: (1) my waiver and release do not apply
to any rights or claims that may arise after the date I sign this Release; (2) I should consult
with an attorney prior to signing this Release (although I may choose voluntarily not to do so);
(3) I have forty-five (45) days from the Separation Date to consider this Release (although I may
choose voluntarily to sign it earlier); (4) I have seven (7) days following the date I sign this
Release to revoke it by providing written notice of revocation to the Senior Vice President of
Human Resources; and (5) this Release will not be effective until the date upon which the
revocation period has expired, which will be the eighth calendar day after the date I sign it,
provided that I do not revoke it (the “Effective Date of the Retirement Date Release”).

I UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. I
acknowledge that I have read and understand Section 1542 of the California Civil Code which reads
as follows: “A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if known by him
or her must have materially affected his or her settlement with the debtor.” I hereby expressly
waive and relinquish all rights and benefits under that section and any law or legal principle of
similar effect in any jurisdiction with respect to my release of claims herein, including but not
limited to the release of unknown and unsuspected claims.

I hereby acknowledge that, on the Separation Date, the Company provided me with the ADEA
Disclosure information required under Title 29 U.S. Code Section 626(f)(1)(H). Furthermore, I
hereby represent that I have been paid all compensation owed and for all hours worked, I have
received all the leave and leave benefits and protections for which I am eligible, pursuant to the
federal Family and Medical Leave Act, the California Family Rights Act, or otherwise, and I have
not suffered any on-the-job injury for which I have not already filed a workers’ compensation
claim.

By: /s/ Dave Packer

Dave Packer

Date: 8/15/08

2

Exhibit B

Proprietary Information and Inventions Agreement

683883 v2/HN

3

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