Document:

Exhibit 10.1

PHASE
FORWARD INCORPORATED

2004 STOCK OPTION AND INCENTIVE PLAN

RESTRICTED STOCK
AWARD AGREEMENT

Name of Grantee:  ____________________________

Number of Shares of
Restricted Stock:  ____________

Grant Date:  __________________

Phase Forward Incorporated
(the “Company”) has selected you to receive an award of shares of Restricted
Stock identified above, subject to the terms set forth on Appendix A
hereto and the provisions of the Phase Forward Incorporated 2004 Stock Option
and Incentive Plan (the “Plan”) and the attached Statement of Terms and
Conditions.

Please indicate your
acceptance of this Agreement by signing below and returning it promptly to the
Company, to the attention of Jackie Almeida.

	
  

  	
  PHASE FORWARD INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  

 

I hereby accept the award of
shares of Restricted Stock and agree to the terms and conditions thereof as set
forth in the Plan and the attached Statement of Terms and Conditions. [*I
hereby further waive any rights that I may have under my Executive Agreement
with the Company dated _______________ with respect to any accelerated vesting
of any shares of Restricted Stock granted herein in the event of any Change in
Control of the Company.]

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  Grantee’s Signature

  
	
   

  	
   

  
	
   

  	
  Grantee’s Name and Address

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

   *For executives only.

 

 

Appendix
A

1.             Vesting Schedule

	
  Percentage of Shares Vested

  	
   

  	
   

  	
   

  	
  Vesting Date

  
	
   

  	
   

  	
  %

  	
   

  	
   

  	
   Anniversary of Grant Date

  
	
   

  	
   

  	
  %

  	
   

  	
   

  	
   Anniversary of Grant Date

  
	
   

  	
   

  	
  %

  	
   

  	
   

  	
   Anniversary of Grant Date

  
	
   

  	
   

  	
  %

  	
   

  	
   

  	
   Anniversary
  of Grant Date

  
								

 

2.             Acceleration Events

(a)                                  In
the event of a Change in Control, the shares of Restricted Stock shall vest as
follows:

·                  On the effective date of the Change in
Control, the number of shares that vest shall be determined by multiplying the
number of shares of Restricted Stock subject to the Award by the product of
______% and the number of full months that have elapsed since the Grant Date [*plus
_______] reduced by the shares that have previously vested pursuant to the
vesting schedule set forth above.

·                  The remaining shares of Restricted Stock
shall vest on each subsequent anniversary of the Grant Date through the fourth
anniversary, measured pro rata monthly from the effective date of Change in
Control over the number of months (rounded up) remaining between the date of
Change in Control and the fourth anniversary of the Grant Date.

[*Notwithstanding the foregoing, all remaining shares
of Restricted Stock shall vest in the event that within the 12-month
period following a Change in Control, the Grantee is terminated by the Company
for any reason other than Cause, death, or Disability or the Grantee notifies
the Company in writing of his resignation within sixty (60) days after any
event constituting Good Reason and describes with reasonable specificity such
event.]

*(b)                          In
the event the Grantee dies while employed or ceases to be employed by the
Company on account of Disability, the shares of Restricted Stock shall vest as
follows:

·                  On
the date the Grantee ceases to be employed by the Company, the number of shares
that vest shall be determined by multiplying the number of shares of 

   *If applicable.

 2
 

 

Restricted
Stock subject to the Award by the product of ______% and the number of full
months that have elapsed since the Grant Date plus 12.

*(c)                           In
the event the Grantee’s employment is terminated by the Company for any reason
other than Cause, death or Disability or the Grantee terminates his/her
employment for Good Reason, in either case either before a Change in Control or
after the 12-month period following a Change in Control, shares of
Restricted Stock shall vest as follows:

·                  On
the date the Grantee ceases to be employed by the Company, the number of shares
that vest shall be determined by multiplying the number of shares of Restricted
Stock subject to the Award by the product of ______% and the number of full
months that have elapsed since the Grant Date.

   *If applicable.

 

 3
 

 

STATEMENT
OF TERMS AND CONDITIONS

1.             Preamble. This Statement
contains the terms and conditions of an award (“Award”) of shares of common
stock of the Company (“Stock”) subject to a risk of forfeiture (“Restricted
Stock”) made to the Grantee identified in the Restricted Stock Award Agreement
attached hereto pursuant to the Plan. Any consideration due to the Company upon
the issuance of the Restricted Stock has been deemed to be satisfied by past
services rendered by the Grantee to the Company.

2.             Acceptance of Award. The
Grantee shall have no rights with respect to this Award unless he/she shall
have accepted this Award by signing and delivering to the Company a copy of the
Restricted Stock Award Agreement within 30 days of the Grant Date indicated on
such agreement. Upon timely acceptance of this Award by the Grantee, the shares
of Restricted Stock so accepted shall be issued and held by the Company’s
transfer agent in book entry form, and the Grantee’s name shall be entered as
the stockholder of record on the books of the Company. Thereupon, the Grantee
shall have all the rights of a shareholder with respect to such shares,
including voting and dividend rights, subject, however, to the restrictions and
conditions specified in Paragraph 3 below.

3.             Restrictions and Conditions.

(a)           Any book entries for the shares of
Restricted Stock granted herein shall bear an appropriate legend, as determined
by the Company in its sole discretion, to the effect that such shares are
subject to restrictions as set forth herein and in the Plan.

(b)           Shares of Restricted Stock granted
herein may not be sold, assigned, transferred, pledged or otherwise encumbered
or disposed of by the Grantee prior to vesting.

(c)           If the Grantee’s employment with the
Company and its Subsidiaries is voluntarily or involuntarily terminated for any
reason (including death) prior to vesting of shares of Restricted Stock granted
herein, all such shares of Restricted Stock shall immediately and automatically
be forfeited and returned to the Company.

4.             Vesting of Restricted Stock.

The
term “vest” as used in this Statement means the lapsing of the restrictions
that are described in this Statement with respect to the Restricted Stock. The
Restricted Stock shall vest in accordance with the schedule set forth in Section 1
of Appendix A to the Restricted Stock Award Agreement so long as the Grantee
remains an employee of the Company or a Subsidiary on each vesting date.

Notwithstanding
the foregoing, the Grantee shall become vested in the Restricted Stock prior to
the vesting dates set forth in Section 1 of Appendix A to the Restricted
Stock Award Agreement in certain circumstances as described in Section 2
of Appendix A.

5.             Dividends. Dividends, if
any, payable on shares of Restricted Stock shall be paid currently to the
Grantee.

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6.             Definitions.*  As used in this Agreement, the following terms
shall have the meanings set forth herein:

(a)           “Board” shall mean Board of
Directors of the Company.

(b)           “Cause” shall mean any one or
more of the following:  (i) Grantee’s
willful failure or refusal (except due to Disability or a condition reasonably
likely to be deemed a Disability with the passage of time) to perform
substantially his/her duties on behalf of the Company for a period of thirty
(30) days after receiving written notice identifying in reasonable detail the
nature of such failure or refusal; (ii) Grantee’s conviction of, entry of
a plea of guilty or nolo contendere
to, or admission of guilt in connection with a felony; (iii) disloyalty,
willful misconduct or breach of fiduciary duty by Grantee which causes material
harm to the Company; or (iv) Grantee’s willful violation of any
confidentiality, developments or non-competition agreement which causes
material harm to the Company. Notwithstanding the foregoing, Grantee shall not
be deemed to have been terminated for Cause unless and until there shall have
been delivered to him a copy of a resolution duly adopted by the Board
(excluding Grantee if he/she is a Director) at a meeting of the Board called
and held for (but not necessarily exclusively for) that purpose (after
reasonable notice to Grantee and an opportunity for Grantee, together with
counsel of his/her choice, to be heard by the Board) finding that Grantee has,
in the good faith opinion of the Board, engaged in conduct constituting Cause
and specifying the particulars thereof in reasonable detail.

(c)           “Change in Control” shall mean
the occurrence of any of the following events:

(i)            The Company is merged or consolidated or reorganized into
or with another corporation or other legal person, and as a result of such
merger, consolidation or reorganization less than fifty percent (50%) of the
combined voting power of the then-outstanding securities of such surviving,
resulting or reorganized corporation or person immediately after such
transaction is held in the aggregate by the holders of the then-outstanding
securities entitled to vote generally in the election of directors of the
Company (“Voting Stock”) immediately prior to such transaction;

(ii)           The Company sells or otherwise transfers all or
substantially all of its assets to any other corporation or other legal person,
and as a result of such sale or transfer less than fifty percent (50%) of the
combined voting power of the then-outstanding securities of such corporation or
person immediately after such sale or transfer is held in the aggregate by the
holders of Voting Stock of the Company immediately prior to such sale or
transfer;

(iii)          Any corporation or other legal person, pursuant to a tender
offer, exchange offer, purchase of stock (whether in a market transaction or
otherwise) or other transaction or event acquires securities representing 30%
or more of the Voting Stock of the Company, or there is a report filed on
Schedule 13D or Schedule 14D-1 (or any successor schedule, form or
report), each as promulgated pursuant to the U.S. Securities

   *Delete any definitions that do not
apply.

 

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Exchange Act of 1934, as amended (the “Exchange Act”),
disclosing that any “person” (as such term is used in Section 13(d)(3) or
Section 14(d)(2) of the Exchange Act) has become the “beneficial
owner” (as such term is used in Rule 13d-3 under the Exchange Act)
of securities representing 30% or more of the Voting Stock of the Company;

(iv)          The Company files a
report or proxy statement with the Securities and Exchange Commission pursuant
to the Exchange Act disclosing under or in response to Form 8-K or
Schedule 14A (or any successor schedule, form or report or item therein) that a
change in control of the Company has occurred; or

(v)           If during any period of two consecutive years, individuals
who at the beginning of any such period constitute the Board cease for any
reason to constitute at least a majority thereof, unless the election, or the
nomination for election by the Company’s stockholders, of each director of the
Company first elected during such period was approved by a vote of at least a
majority of the directors then still in office who were directors of the
Company at the beginning of any such period;

provided, however, that a “Change in Control”
shall not be deemed to have occurred for purposes of this Agreement solely
because (1) the Company, (2) an entity in which the Company directly
or indirectly beneficially owns 50% or more of the Voting Stock, or (3) any
Company-sponsored employee stock ownership plan or any other employee benefit
plan of the Company, either files or becomes obligated to file a report or a
proxy statement under or in response to Schedule 13D, Schedule 14D-1, Form 8-K
or Schedule 14A (or any successor schedule, form or report) under the Exchange
Act, disclosing beneficial ownership by it of shares of Voting Stock or because
the Company reports that a change in control of the Company has occurred by
reason of such beneficial ownership.

Notwithstanding the
foregoing, a Change in Control shall not be deemed to have occurred if (A) the
Company is the surviving company in a transaction described in subparagraph
6(c)(i), (B) a majority of the Board of Directors of the surviving company
is comprised of the members of the Board of the Company immediately prior to
such transaction and remains so for at least twelve (12) months thereafter, and
(C) the President and Chief Executive Officer of the surviving company
immediately after the effective date of the transaction is the President and
Chief Executive Officer of the Company immediately prior to such transaction
and remains so for at least twelve (12) months thereafter or until his/her
voluntary resignation, if earlier.

(d)           “Disability”
shall mean any physical or meant disability that renders Grantee unable to
perform his/her essential job responsibilities for a cumulative period of 180
days in any twelve-month period, where such disability cannot be reasonably accommodated absent
undue hardship.

(e)           “Good Reason”
after a Change in Control shall mean the occurrence of any of the following
events, without Grantee’s prior written consent:

(i)            The substantial reduction of (1) Grantee’s
aggregate base salary, (2) Grantee’s Incentive Pay Eligibility, or (3) the
benefits for which Grantee was eligible, in each case, in effect immediately
prior to a Change in Control; unless, however, in the 

 6
 

 

case of subclause (3) only, such reduction is due
to an across-the-board reduction applicable to all senior executives of the
Company and any Successor, and the benefits available to Grantee after such across-the-board
reduction are no less favorable than those available to similarly-situated
executives of the Company and such Successor;

                     (ii)           The
permanent relocation of Grantee’s primary workplace to a location more than
thirty (30) miles away from Grantee’s workplace in effect immediately prior to
a Change in Control; or

(iii)          Failure of any successor to, or assignee of, the Company to
assume the duties and obligations of the Company under this Agreement pursuant
to Paragraph 13 hereof.

(f)            “Good Reason” prior to a
Change in Control shall mean the occurrence of any of the following events,
without the Grantee’s prior written consent:

(i)            The substantial reduction of (1) Grantee’s
aggregate base salary, (2) Grantee’s Incentive Pay Eligibility, or (3) the
benefits for which Grantee was eligible, in each case, in effect as of the
Grant Date and as may be increased from time to time, unless, however, in the
case of subclause (3) only, such reduction is due to an across-the-board
reduction applicable to all senior executives of the Company, and the benefits
available to Grantee after such across-the-board reduction are no less
favorable than those available to similarly-situated executives of the Company;
or

(ii)           The permanent relocation of Grantee’s
primary workplace to a location more than thirty (30) miles from Grantee’s
workplace in effect on the Grant Date.

(g)           “Incentive Pay Eligibility”
shall mean the aggregate amount of any cash compensation derived from any
bonus, incentive, performance, profit-sharing or similar agreement, policy,
plan or arrangement of the Company that Grantee is eligible to receive based
upon the attainment of 100% target or quota with respect to any one year;
provided, however that Incentive Pay Eligibility shall exclude any commission
or bonus calculated on the basis of sales or bookings that Executive is
eligible to received under the Company’s 2004 Global Sales Incentive
Compensation Plan or any successor plan thereto (“Sales Plan”), but will
include any bonus calculated on the basis of (i) corporate objectives
applicable to all executives of the Company (if specified in the Sales Plan)
and (ii) any quarterly bonus calculated on the basis of quarterly quota
achievement specified in the Sales Plan, assuming achievement of the greater of
(x) 100% of the quarterly quota or (y) the actual percentage of the
quarterly quota achieved prior to the Termination Date.

(h)           “Successor” shall mean any
successor to the Company (whether direct or indirect, by Change in Control,
operation of law or otherwise), including but not limited to any successor
(whether direct or indirect, by Change in Control, operation of law or
otherwise) to, or ultimate parent entity of any successor to, the Company.

7.             Incorporation of Plan. Notwithstanding
anything herein to the contrary, this Award shall be subject to and governed by
all the terms and conditions of the Plan. Capitalized 

 7
 

 

terms in this Award shall have the meaning specified
in the Plan, unless a different meaning is specified herein.

8.             Non-Transferability. This
Award is personal to the Grantee, is non-assignable and is not transferable in
any manner, by operation of law or otherwise, other than by will or the laws of
descent and distribution.

9.             Tax Withholding. The Company
intends to meet its minimum tax withholding obligation by withholding from
shares of Stock to be issued to the Grantee.

10.           Election Under Section 83(b).
The Grantee and the Company hereby agree that the Grantee may, within 30 days
following the acceptance of this Award as provided in Paragraph 2 hereof, file
with the Internal Revenue Service and the Company an election under Section 83(b) of
the Internal Revenue Code. In the event the Grantee makes such an election,
he/she agrees to provide a copy of the election to the Company.

11.           No Obligation to Continue
Employment. Neither the Company nor any Subsidiary is obligated by or as a
result of the Plan or this Award to continue the Grantee in employment and
neither the Plan nor this Award shall interfere in any way with the right of
the Company or any Subsidiary to terminate the employment of the Grantee at any
time.

12.           Notices. Notices hereunder
shall be mailed or delivered to the Company at its principal place of business
and shall be mailed or delivered to the Grantee at the address on file with the
Company or, in either case, at such other address as one party may subsequently
furnish to the other party in writing.

13.           Successors and Assigns. The
Company will require its respective assign and Successors to expressly assume
this Award and to agree to perform hereunder in the same manner and the same
extent that the Company would be required to perform if no such succession or
assignment had taken place. Regardless of whether such an agreement is
executed, this Award shall inure to the benefit of, and be binding upon, the
Company’s Successor and assigns and Grantee’s heirs, estates, legatees,
executors, administrators, and legal representatives.

 

 8Exhibit 10.2

AMENDMENT
TO EXECUTIVE AGREEMENT

This Amendment to
Executive Agreement (the “Amendment”) is made as of June __, 2006
by and among Phase Forward Incorporated, a Delaware corporation (the “Company”)
and the executive named below (the “Executive”). Capitalized terms used herein
and not otherwise defined shall have the meanings set forth in that certain
Executive Agreement, dated as of _______, by and among the Company and the
Executive (the “Executive Agreement”).

WHEREAS,
the Company and the Executive are parties to the Executive Agreement;

WHEREAS,
the parties wish to modify the Executive Agreement to comply with Section 409A
of the Internal Revenue Code of 1986, as amended;

WHEREAS, Section 17
of the Executive Agreement provides that the Executive Agreement may not be
modified without a written instrument signed by the party against whom any
change is sought;

NOW THEREFORE, pursuant
to Section 17 of the Executive Agreement, and for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Company and the Executive, intending to be legally bound, agree as follows:

1.               Section 3(j)(i) of
the Executive Agreement is deleted and replaced in its entirety with the
following:

“(i)  payment of an amount equal to 50% (i.e., six (6) months) of the
Executive’s base salary, at the highest annualized rate in effect during the
one year period immediately prior to the Termination Date payable in a lump sum
payment on the Termination Date (subject to the expiration of any applicable
revocation period required by law and the provisions of Section 21); and”

2.               Section 5(a)(iv) of
the Executive Agreement is deleted and replaced in its entirety with the
following:

“(iv)  Any
and all unvested stock, stock options, awards and rights that were granted to
Executive under any of the Stock Plans prior to the Termination Date shall
immediately become fully vested and exercisable as of the Termination Date or,
if Executive’s employment was terminated within the three-month period prior to
the Announcement Date, as of the Announcement Date (whichever may apply, the “Vesting Date”). Notwithstanding any
contrary provision of any agreement relating to then outstanding stock, stock
options, awards and rights granted to Executive under any of the Stock Plans
after the Execution Date, all such stock, stock options, awards and rights
granted after the Execution Date may be exercised by Executive (or Executive’s
heirs, estate, legatees, executors, administrators, and legal representatives)
at any time during the period ending on the earlier of (A) the later of (i) three
(3) months after the Vesting Date and (ii) if Executive dies within
the three-month period after the Vesting Date, the first anniversary of the
date of Executive’s death, and (B) the scheduled expiration of such stock,
stock option, award or right, as the case may be. Notwithstanding the
following, any extension of option exercise period shall be limited to the
extent determined by the Company to avoid any options being treated as nonqualified
deferred compensation subject to the provisions of Section 

 

 

409A of the Code. Executive
hereby acknowledges and agrees that, as a result of the operation of Section 4
and this subsection 5.a(ii), some or all of the “incentive stock options” (as
defined in the Code) granted to Executive under the Stock Plans may no longer
qualify as “incentive stock options” for U.S. federal income tax purposes, and
Executive hereby consents to any such disqualification.”

3.               Section 5(a)(v) of the
Executive Agreement is deleted and replaced in its entirety with the following:

“(v)  Each
of the payments set forth in subsections 5.a(i)-(ii) above (the “Cash Severance Benefits”) shall be
payable in a lump sum payment on the Vesting Date (subject to the
expiration of any applicable revocation period required by law and the
provisions of Section 21).”

4.               That
the following be inserted as a new Section 21:

“21.         Section 409A. Notwithstanding
anything herein to the contrary, if at the time of Executive’s termination of
employment with the Company, Executive is a “specified employee” as defined in Section 409A
of the Code and the regulations promulgated thereunder, and the Company
notifies Executive that, based on the advice of counsel, the deferral of the
commencement of any Severance Benefits payable under Section 4(a) or
Cash Severance Benefits payable under Section 5(a) is necessary in
order to comply with Section 409A of the Code, then the Company will defer
the commencement of the Severance Benefits or Cash Severance Benefits, as the
case may be, (without any reduction) by a period of at least six months after
Executive’s termination of employment. Any Severance Benefits or Cash Severance
Benefits that would have been paid during such six-month period but for the
provisions of the preceding sentence shall be paid in a lump sum to Executive
within the first five (5) days of the seventh month following Executive’s
termination of employment. The provisions of this Section 21 shall apply
only to the extent required to avoid Executive’s incurrence of any accelerated
or additional tax under Section 409A of the Code.”

5.     Except as set forth in this Agreement, the Executive Agreement
remains in full force and effect.

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

7.     The parties hereto agree to execute such further instruments and
to take such further action as may reasonably be necessary to carry out the intent
of this Agreement and enforce the rights and obligations pursuant hereto.

[Signature
Page to Follow]

 

Executed as of the date first set forth above.

	
  

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PHASE FORWARD INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  Title: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  Address:

  

 

Signature Page to Amendment

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