Document:

EX-10.2

CONSULTING AGREEMENT

This Consulting Agreement (this “Agreement”) is entered into as of June 18, 2007,
between SCM Microsystems GmbH (“SCM GmbH” and, together with its parent, subsidiaries and
affiliates, the “Company”), and Robert Schneider (“Consultant”) and sets forth the
mutual agreement between the parties. In consideration of the payments to be made to Consultant
and for other good and valuable consideration, SCM GmbH and Consultant agree as follows:

1. Services. During the Period (as defined below), Consultant will furnish the
Company with certain consulting services as may be requested from time to time by the Board, the
Chairman of the Board, the Managing Director or the Chief Executive Officer of the Company (the
“Services”), which Services shall be performed in accordance with mutually agreed upon
general time frames and deadlines that may be furnished by the Board, the Chairman of the Board,
the Managing Director or the Chief Executive Officer of the Company to Consultant. Consultant will
otherwise determine where, when and in what manner the Services will be performed and Consultant’s
own work schedule, and Consultant will not receive detailed instructions from the Company in this
regard. Consultant will provide his own equipment as may be necessary to perform the Services and
will work from Consultant’s own facilities. Consultant will not have a regular or specific office,
work place, phone number or mailing address at the Company’s facilities, nor will Consultant be
supplied any assistant or secretary by the Company or have the ability or authority to direct,
supervise or delegate duties or tasks to employees of the Company. The Services will be performed
to the best of Consultant’s ability and at all times in a professional and ethical manner that will
enhance the reputation and goodwill enjoyed by the Company. Consultant will conduct himself at all
times in accordance with the highest standards of honesty, integrity and professionalism
(including, without limitation, any ethics policy, rules or code of conduct and other policies that
may be established or adopted from time to time by the Company) and will do nothing which is or
would reasonably be expected to be detrimental or prejudicial to the best interests or to the
reputation of the Company. Consultant hereby represents and warrants that (i) he will comply with
all applicable local, state, federal and foreign laws, and executive orders, rules and regulations
in the performance of the Services; (ii) the execution, delivery and performance of this Agreement
by Consultant will not constitute a breach of, or default under, or otherwise conflict with, any
other agreement or instrument to which Consultant is a party or bound, nor will this Agreement be,
or result, in violation of any court order, judgment or governmental regulation which may be
applicable to Consultant; (iii) Consultant is not subject to any contract or other restriction or
obligation which will or would reasonably be expected to interfere with the performance of the
Services by Consultant or Consultant’s other obligations under this Agreement; (iv) Consultant has
or will promptly and fully inform SCM GmbH, prior to providing any Service, of any direct or
indirect interest, ownership, conflict or other relationship that Consultant may have in connection
with the provision of such Service; and (v) during the Period (as defined below), Consultant agrees
that it will not, directly or indirectly, engage in any other employment, consulting or other
activity that may conflict with Consultant’s obligations to the Company hereunder or that would
reasonably be expected to result in a conflict of interest, in each case, without fully informing
SCM GmbH in advance of undertaking any such activity. Consultant hereby agrees to indemnify, defend
and hold harmless the Company and the Company’s members, officers, employees, representatives,
counsel and affiliates — at the discretion of SCM GmbH by payment to SCM GmbH, to any of the
affiliates of the Company or to the third party claimant — from and against any damages, losses,
costs, fines, fees, expenses (including attorney fees), liabilities, injuries, judgments,
settlements and/or claims arising or resulting from (i) any breach or threatened breach by
Consultant of any of the representations, warranties and covenants made by Consultant in this
Agreement, (ii) the gross negligence or willful misconduct of Consultant, or (iii) any actions,
failure to take actions, misconduct, negligence, statements or other acts of Consultant that are
not expressly authorized by SCM GmbH under this Agreement.

2. Period; Termination. Unless terminated earlier pursuant to this Section 2,
the Services will be provided by Consultant during the period from July 7, 2007 through July 7,
2008, and shall thereafter continue on a month-to-month basis (the “Period”). Either
Party may terminate the Period for any reason or for no reason, with or without cause, at any time
by giving thirty (30) days notice to the other Party. In addition, the Period shall terminate
automatically and immediately on the occurrence of any of the following events: (i) the filing of
any involuntary petition in bankruptcy (or under any similar insolvency law) against a party that
is not dismissed within thirty (30) days after the filing thereof, the filing of any voluntary
petition in bankruptcy (or under any similar insolvency law) by any party, an assignment for the
benefit of a party’s creditors, the appointment of a trustee, receiver, sequestrator or other
custodian for a party or any of its property, the taking of any action authorizing, or in
furtherance of, any of the foregoing, or otherwise the insolvency of any party; (ii) either (1) the
sale of SCM Microsystems, Inc. or SCM GmbH or all or substantially all of their
respective assets or (2) a merger, consolidation or similar transaction involving either SCM
Microsystems, Inc. or SCM GmbH in which the stockholders of such entity prior to the
merger cease to hold at least 50% of the voting securities of the surviving company after such
transaction; (iii) the dissolution or winding up of SCM Microsystems, Inc. or SCM GmbH or the death
or disability of Consultant; (iv) a breach by Consultant of any of the representations, warranties
and covenants made by Consultant in this Agreement or the Resignation Agreement that is not cured
within fifteen (15) days; or (v) the occurrence of any other event which is reasonably likely to
render Consultant unable to perform the Services. Upon any termination or expiration of the
Period, Consultant will be entitled to receive only the Consulting Compensation (as defined below),
if any, that remains unpaid and relates to Services provided prior to the date of termination or
expiration and reimbursement of any expenses that are entitled to reimbursement pursuant to and
accordance with Section 3 below, in each case, subject to offset or holdback for any
amounts that Consultant may then owe the Company. Except as provided in the immediately preceding
sentence, the Company will not be required to make any other payment, by way of compensation,
reimbursement, damages of any kind or otherwise, to Consultant, nor shall the Company or any of its
members, officers, employees, representatives, counsel or affiliates be liable to Consultant for
any claims, amounts or damages of any kind, including, without limitation, claims in contract, tort
or otherwise, wrongful termination, breach of contract, or consequential (including lost profits
and lost opportunity), incidental, punitive or exemplary damages.

3. Compensation; Expenses. As compensation for the Services, SCM GmbH will pay
Consultant the sum of one thousand, five hundred (1,500) Euro per full day (at least 8 hours, with
a pro rata amount paid for any portion of a full day less than 8 hours) of Services (the
“Consulting Compensation”). In addition, SCM GmbH will reimburse Consultant for any
necessary, reasonable and documented out-of-pocket expenses incurred by Consultant at the SCM
GmbH’s request; provided that unless otherwise agreed to by SCM GmbH, Consultant is
responsible for all expenses incurred by Consultant in connection with the performance of the
Services. Consultant shall submit a monthly invoice to SCM GmbH for any Consulting Compensation
amount, plus VAT (if applicable), due Consultant and reasonably detailed backup documentation for
any such Consulting Compensation and any expenses for which Consultant may be entitled to
reimbursement. Payment of the Consulting Compensation and any reimbursement of expenses shall be
made pursuant to SCM GmbH’s standard policies.

4. Independent Contractor Status. Consultant shall provide the Services as an
independent contractor. This Agreement does not create or imply and shall not be construed as
creating or implying a joint venture, partnership, agency or employment relationship between the
Company and Consultant. Consultant shall have no power or authority to bind, act or assume or
create any obligation or responsibility on behalf of the Company. Under no circumstances shall
Consultant or any of Consultant’s affiliates or successors or heirs look to the Company as an
employer, or as a partner, agent, or principal. Consultant shall not be entitled to any benefits
provided to the Company’s employees, including, without limitation, social security, workers’
compensation, disability, unemployment, health or any other insurance, vacation, sick pay or
severance. This Section 4 shall survive any expiration or termination of this Agreement or
the Period.

5. Taxes. Except as may be required by law, neither SCM GmbH nor any of its
affiliates will withhold or make payments on behalf of Consultant. To the extent required of
Consultant by law, Consultant shall report all compensation received hereunder to the appropriate
foreign, federal, state or local taxing authorities. Consultant shall pay, when and as due, any
and all fees, duties and taxes incurred or owed by Consultant as a result of the compensation paid
hereunder, including estimated taxes, social security, workers’ compensation, disability,
unemployment, health or other insurance, vacation, sick pay or severance, if applicable, and shall
provide SCM GmbH with proof of said payments upon request. This Section 5 shall survive
any expiration or termination of the Period. Consultant hereby agrees to indemnify, defend, and
hold harmless the Company — at the discretion of SCM GmbH by payment to SCM GmbH, any of the
affiliates of the Company or the third party claimant — from and against any claims, losses, costs,
fines, assessments, fees, liabilities, damages or injuries suffered by the Company arising out of
any breach by Consultant of this Section 5.

6. Additional Covenants. The obligations of Consultant under the each of the
subsections of this Section 6 are referred to collectively as the “NDA and Non-Compete
Covenants.”

(a) Confidentiality; No Conflict; Non Compete; etc. During the Period, the Consultant
shall strictly keep secret any confidential information concerning the business of the Company,
including, but not limited to, products, contractual arrangements, deals, customers, prices,
business strategies, raw material blending, manufacturing processes and prospects and any other
confidential affairs or information of the Company, and will not utilise any such information in
any manner for his own or for the benefit of others. After the Period, the Consultant’s duty of
confidentiality as set forth in preceding sentence shall survive. In case of a professional or
entrepreneurial activity of the Consultant after the Period, he can make use of his professional
knowledge acquired during the Period, provided that, the statutory limitations, including,
but not limited to, those set forth in sections 3, 17 UWG, 823, 826 Civil Code and the Data
Protection Act, or limitations arising from a post-termination non-compete to which Consultant is
bound, if any, are strictly observed. Consultant acknowledges that he is aware that the United
States securities laws prohibit any person who is in the possession of material non-public
information about a company from purchasing or selling that company’s securities in reliance upon
such information or from communicating such information to any other person or entity under
circumstances in which it is reasonably foreseeable that such person or entity is likely to
purchase or sell such securities in reliance upon such information. During the Period, Consultant
agrees that he will not engage, directly or indirectly, professionally or occasionally, for his own
account or the account of a third party, independently or dependently, in any other employment,
occupation, consulting or other business activity competitive with or related to the current or
future business of the Company, nor will Consultant engage in any other activities that may
conflict with his obligations to the Company hereunder. The restriction on competition set forth
in the preceding paragraph shall especially apply to the territory of Europe, the United States of
America and Japan. The payments set forth in Section 3, shall not be owed if the
Consultant breaches the non-compete obligation set forth in this Section 6(a).

(b) Return of Company Property. Upon any expiration or termination of the Period,
Consultant shall return to the Company all of the Company’s property, documents, records and other
materials, including, but not limited to, any confidential or proprietary information, in his
possession, custody or control (and all copies, whether in paper, electronic or other format,
thereof).

(c) Non-Disparagement. Consultant agrees to refrain from making any derogatory,
disparaging and/or detrimental statements to any other person or third parties about the Company
and the Company’s directors, officers, investors, employees, products or services. Consultant also
agrees that he will not act in any manner that might interfere with the business or disparage the
reputation of the Company. SCM GmbH agrees to direct each of the current members of its Board and
its current executive officers and its affiliates to refrain from making any derogatory,
disparaging and/or detrimental statements to any other person or third parties about Consultant.
Nothing set forth in this Section 6(c) shall prohibit or limit in any way a Party’s right
to accurately and honestly respond as required or to cooperate with any valid government, court or
regulatory order or request.

(d) Inventions, Copyrights. Rights to inventions or technical improvements which
Consultant makes or works out during his activity on behalf of the Company, in connection with his
activity on behalf of the Company, as a result of his experiences arising from his activity on
behalf of the Company or on the basis of studies of the Company, in each case, shall be held solely
by SCM GmbH, and Consultant hereby assigns in advance all such rights including all applicant’s
rights, the entitlement to the priority of the rights and the right to file for intellectual
property protection abroad to SCM GmbH. The Company shall not be obligated to pay any additional
compensation to Consultant in this regard. The Employee Invention Act shall not be applicable in
the absence of employee status on the part of Consultant. Accordingly, Consultant hereby assigns
in advance to SCM GmbH exclusive use, at no charge, of any copyrights arising through him for works
created in connection with his activity, as a result of his experience arising from his activities
on behalf of the Company or on the basis of studies by the Company.

7. Other Agreement. Notwithstanding anything to the contrary contained in this
Agreement, the Resignation and Severance Agreement between SCM Microsystems, Inc., SCM GmbH and
Consultant dated as of June 18, 2007 (the “Resignation Agreement”), shall remain in full
force and effect.

8. Entire Agreement. This Agreement sets forth the entire agreement between SCM GmbH
and Consultant with respect to the provision of the Services and supersedes any prior agreements or
understanding, whether oral or written, concerning the provision of the Services . This Agreement
may not be altered or amended except by a written document signed by the Parties. Consultant
acknowledges that he is executing this Agreement voluntarily and knowingly and that he has not
relied upon any representation or statement made by the Company or its agents with respect to the
subject matter, basis or effect of this Agreement, other than those specifically stated in this
Agreement. This Agreement shall be binding upon Consultant and Consultant’s successors and assigns
and shall inure to the benefit of SCM GmbH and its successors and assigns.

9. Severability. Whenever possible, each provision or portion of any provision of
this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any one or more of the provisions or portions of any provisions of this Agreement shall
be or become invalid, illegal or unenforceable in any respect or to any degree, the validity,
legality and enforceability of any remaining provision of this Agreement that is not closely
related to the invalid, illegal or unenforceable provision shall not be affected thereby and said
illegal, unenforceable or invalid provisions, solely to the extent of such invalidity, illegality
and unenforceability, shall be deemed not to be a part of this Agreement.

10. Governing Law; Venue.

(a) This Agreement shall be governed, interpreted and enforced by and under the laws of the
Federal Republic of Germany, without regard to its conflicts of law provisions.

(b) The parties irrevocably consent and submit to the exclusive jurisdiction of the courts
located in Munich, Germany, for the adjudication of any dispute, suit or proceeding based on or
arising under this Agreement or in connection with any of the transactions contemplated hereby, and
irrevocably agree that all claims in respect of such suit or proceeding may be determined in such
courts. The parties irrevocably waive the defense of an inconvenient forum to the maintenance of
such suit or proceeding.

(c) To the extent applicable, the parties further agree that service of process upon the other
party mailed by first class mail shall be deemed in every respect effective service of process upon
such party in any such suit or proceeding. Nothing herein shall affect the right of the parties to
serve process in any other manner permitted by law. The parties agree that a final non-appealable
judgment in any such suit or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on such judgment or in any other lawful manner.

11. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original and together shall be deemed to be one and the same document.

[Signature Page Follows]

1

IN WITNESS WHEREOF, the Parties hereto have duly executed this Consulting Agreement.

SCM MICROSYSTEMS GMBH:

By:

Stephan Rohaly

Its Prokurist

Date: June 18, 2007

By:

Dietmar Wendling

Its Prokurist

Date: June 18, 2007

CONSULTANT:

Robert Schneider

Date: June 18, 2007

2EX-10.23

BMC SOFTWARE, INC.

2007 INCENTIVE PLAN

1

BMC SOFTWARE, INC. 2007 INCENTIVE PLAN

TABLE OF CONTENTS

Page

	 	 	 
	SECTION I. DEFINITIONS
	1.1

	 	Definitions
	
 
	 	 

	 	 	 
	SECTION 2 THE STOCK INCENTIVE PLAN
	2.1

	 	Purpose of the Plan
	
 
	 	 
	2.3

	 	Administration of the Plan
	
 
	 	 
	2.4

	 	Eligibility and Limits
	
 
	 	 

	 	 	 
	SECTION 3 TERMS OF STOCK INCENTIVES
	3.1

	 	Terms and Conditions of All Stock Incentives
	
 
	 	 
	3.2

	 	Terms and Conditions of Options.
	
 
	 	 

(a) Option Price

(b) Option Term

(c) Payment.

(d) Conditions to the Exercise of an Option.

(e) Termination of Incentive Stock Option.

(f) Special Provisions for Certain Substitute Options.

3.3 Terms and Conditions of Stock Appreciation Rights.

(a) Settlement.

(b) Option Term

(b) Conditions to Exercise.

3.4 Terms and Conditions of Stock Awards.

3.5 Terms and Conditions of Dividend Equivalent Rights.

(a) Payment.

(b) Conditions to Payment.

3.6 Terms and Conditions of Performance Unit Awards.

(a) Payment.

(b) Conditions to Payment.

3.7 Terms and Conditions of Phantom Shares.

(a) Payment.

(b) Conditions to Payment.

3.8 Treatment of Awards Upon Termination of Employment

	 	 	 
	SECTION 4 RESTRICTIONS ON STOCK
	4.1

	 	Escrow of Shares.
	
 
	 	 
	4.2

	 	Restrictions on Transfer.
	
 
	 	 

	 	 	 
	SECTION 5 GENERAL PROVISIONS
	5.1

	 	Withholding.
	
 
	 	 
	5.2

	 	Changes in Capitalization; Merger; Liquidation.
	
 
	 	 
	5.3

	 	Compliance with Code.
	
 
	 	 
	5.4

	 	Right to Terminate Employment or Service.
	
 
	 	 
	5.5

	 	Non-Alienation of Benefits.
	
 
	 	 
	5.6

	 	Restrictions on Delivery and Sale of Shares; Legends.
	
 
	 	 
	5.7

	 	Listing and Legal Compliance
	
 
	 	 
	5.8

	 	Termination and Amendment of the Plan.
	
 
	 	 
	5.9

	 	Stockholder Approval.
	
 
	 	 
	5.10

	 	Choice of Law.
	
 
	 	 
	5.11

	 	Effective Date of Plan
	
 
	 	 

2

BMC SOFTWARE, INC.

2007 INCENTIVE PLAN

SECTION I

DEFINITIONS

1.1 Definitions. Whenever used herein, the masculine pronoun will be deemed to
include the feminine, and the singular to include the plural, unless the context clearly indicates
otherwise, and the following capitalized words and phrases are used herein with the meaning
thereafter ascribed:

	 	(a)	 	“Affiliate” means:

(1) Any Subsidiary or Parent,

(2) An entity that directly or through one or more intermediaries controls, is
controlled by, or is under common control with the Company, as determined by the
Company, or

(3) Any entity in which the Company has such a significant interest that the Company
determines it should be deemed an “Affiliate”, as determined in the sole discretion
of the Company.

(b) “Award” means, individually and collectively, an Incentive Stock Option,
Non-Qualified Stock Option, Dividend Equivalent Right, Performance Award, Restricted Stock
Unit, Stock Appreciation Right, Stock Award, and Phantom Stock.

(c) “Award Agreement” means an agreement between the Company and a Participant
or other documentation evidencing any Award granted under the Plan.

(d) “Award Program” means a written program established by the Committee,
pursuant to which Awards are granted under the Plan under uniform terms, conditions and
restrictions set forth in such written program.

(e) “Board of Directors” means the board of directors of the Company.

(f) “Code” means the Internal Revenue Code of 1986, as amended.

(g) “Committee” means the one or more committees appointed by the Board of
Directors to administer the Plan. The Board of Directors shall consider the advisability of
whether the members of the Committee shall consist solely of two or more members of the
Board of Directors who are both Outside Directors. Notwithstanding the foregoing, with
respect to Awards granted by an officer or officers of the Company and/or the Chairperson of
the Compensation Committee pursuant to Section 2.3(b), the “Committee” as used in the Plan
shall mean such officer or officers and/or such Chairperson, unless the context would
clearly indicate otherwise.

(h) “Company” means BMC Software, Inc., a Delaware corporation.

(i) “Disability” has the same meaning as provided in the long-term disability
plan or policy maintained or, if applicable, most recently maintained, by the Company or, if
applicable, any Affiliate of the Company for the Participant. If no long-term disability
plan or policy was ever maintained on behalf of the Participant or, if the determination of
Disability relates to an Incentive Stock Option, Disability means that condition described
in Code Section 22(e)(3), as amended from time to time. In the event of a dispute, the
determination of Disability will be made by the Committee and will be supported by advice of
a physician competent in the area to which such Disability relates.

(j) “Dividend Equivalent Rights” means certain rights to receive cash payments
as described in Section 3.5.

(k) “Exchange Act” means the Securities Exchange Act of 1934, as amended from
time to time.

(l) “Fair Market Value” refers to the determination of the value of a share of
Stock as of a date, determined as follows:

(1) if the shares of Stock are actively traded on any national securities
exchange or any nationally recognized quotation or market system (including, without
limitation Nasdaq), Fair Market Value shall mean the price at which Stock shall have
been sold on such date or on the trading day immediately preceding such date, as
reported by any such exchange or system selected by the Committee on which the
            shares of Stock are then traded;

(2) if the shares of Stock are not actively traded on any such exchange or
system, Fair Market Value shall mean the price for the Stock on such date, or on the
trading day immediately preceding such date, as reported by such exchange or system;
or

(3) if the shares of Stock are not actively traded or reported on any exchange
or system on such date or on the business day immediately preceding such date, Fair
Market Value shall mean the fair market value of a share of Stock as determined by
the Committee taking into account such facts and circumstances deemed to be material
by the Committee to the value of the Stock in the hands of the Participant.

Notwithstanding the foregoing, for purposes of Paragraph (1), (2), or (3) above, the Committee
may use the closing price as of the indicated date, the average of the high and low prices or
value as of the indicated date or for a period certain ending on the indicated date, the price
determined at the time the transaction is processed, the tender offer price for shares of Stock,
or any other method which the Committee determines is reasonably indicative of the fair market
value of the Stock; provided further, that for purposes of granted Non-Qualified Stock Options
or Stock Appreciation Rights, Fair Market Value of Stock shall be determined in accordance with
the requirements of Code Section 409A, and for purposes of granting Incentive Stock Options,
Fair Market Value of Stock shall be determined in accordance with the requirements of Code
Section 422.

(m) “Incentive Stock Option” means an incentive stock option within the meaning
of Section 422 of the Internal Revenue Code.

(n) “Non-Qualified Stock Option” means a stock option that is not an Incentive
Stock Option

(o) “Option” means a Non-Qualified Stock Option or an Incentive Stock Option.

(p) “Outside Director” means an outside director as defined in Treas. Reg. §
1.162-27(e) as promulgated by the Internal Revenue Service and “non-employee directors” as
defined in Rule 16b-3(b)(3) as promulgated under the Exchange Act, and if applicable, who
satisfies the requirements of the national securities exchange or nationally recognized
quotation or market system on which the Stock is then traded.

(q) “Over 10% Owner” means an individual who at the time an Incentive Stock
Option to such individual is granted owns Stock possessing more than 10% of the total
combined voting power of the Company or one of its Subsidiaries, determined by applying the
attribution rules of Code Section 424(d).

(r) “Parent” means any corporation (other than the Company) in an unbroken
chain of corporations ending with the Company if, with respect to Incentive Stock Options,
at the time of the granting of the Option, each of the corporations other than the Company
owns stock possessing 50% or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain. A Parent shall include any entity other
than a corporation to the extent permissible under Section 424(f) or regulations and rulings
thereunder.

(s) “Participant” means an individual who receives an Award hereunder.

(t) “Performance Goals” means any one or more of the following performance
goals, intended by the Committee to constitute objective goals for purposes of Code Section
162(m), either individually, alternatively or in any combination, applied to either the
Company as a whole or to a business unit or Affiliate, either individually, alternatively or
in combination, and measured either quarterly, annually or cumulatively over a period of
quarters or years, on an absolute basis or relative to a pre-established target, to previous
quarter’s or years’ results or to a designated comparison group, in each case as specified
by the Committee in the Award:

(i) earnings per share;

	 	 	 
	(ii)

(iii)

(iv)

	 	operating cash flow;

cash available;

net income;

(v) revenue, including but not limited to maintenance revenue, deferred
revenue, or ratable license revenue;

	 	 	 
	(vi)

(vii)

(viii)

(ix)

	 	total shareholder return;

return on invested capital;

return on shareholder equity;

return on assets;

(x) return on common book equity;

	 	 	 
	(xi)

(xii)

(xiii)

(xiv)

(xv)

(xvi)

	 	market share;

economic value added;

stock price;

operating income;

operating margin;

EBIT, or EBITDA;

(xvii) sales, including but not limited to the linearity of sales or the
percentage of sales before a specified time period in a quarter or fiscal year;

(xviii) cost reduction goals;

(xix) expenses or operating expenses;

(xx) productivity of employees as measured by revenues, costs or earnings per
employee; or

(xxi) any combination of the foregoing.

The Committee may appropriately adjust any evaluation of performance under a Performance
Goal to remove the effect of equity compensation expense under FAS 123R, amortization of
acquired technology and intangibles, asset write-downs; litigation or claim judgments or
settlements; the effect of changes in or provisions under tax law, accounting principles or
other such laws or provisions affecting reported results; accruals for reorganization and
restructuring programs; discontinued operations; and any items that are extraordinary,
unusual in nature, non-recurring or infrequent in occurrence, except where such action would
result in the loss of the otherwise available exemption of the Award under Section 162(m) of
the Code, if applicable.

(u) “Performance Period” means, with respect to an Award, a period of time
within which the Performance Goals relating to such Award are to be measured. The
Performance Period will be established by the Committee at the time the Award is granted.

(v) “Performance Award” refers to a performance award as described in Section
3.6.

(w) “Phantom Stock” refers to the rights described in Plan Section 3.8.

(x) “Plan” means the BMC Software, Inc. 2007 Incentive Plan.

(y) “Restricted Stock Units” refers to the rights described in Section 3.7.

(z) “Stock” means the Company’s common stock.

(aa) “Stock Appreciation Rights” refers to the rights described in Section 3.3.

(bb) “Stock Award” means a stock award described in Section 3.4.

(cc) “Subsidiary” means any corporation (other than the Company) in an unbroken
chain of corporations beginning with the Company if, at the time of the granting of the
Option, each of the corporations other than the last corporation in the unbroken chain owns
stock possessing 50% or more of the total combined voting power of all classes of stock in
one of the other corporations in the chain. A “Subsidiary” shall include any entity other
than a corporation to the extent permissible under Section 424(f) or regulations or rulings
thereunder.

(dd) “Termination of Employment” means the termination of the employment
relationship between a Participant and the Company and its Affiliates, regardless of whether
severance or similar payments are made to the Participant for any reason, including, but not
by way of limitation, a termination by resignation, discharge, death, Disability or
retirement. The Committee will, in its absolute discretion, determine the effect of all
matters and questions relating to a Termination of Employment as it affects an Award,
including, but not by way of limitation, the question of whether a leave of absence
constitutes a Termination of Employment. With respect to directors, “Termination of
Employment” shall mean the termination of services by such director for the Company and its
Affiliates.

SECTION 2

THE INCENTIVE PLAN

2.1 Purpose of the Plan.  The Plan is intended to (a) provide incentives to certain
officers, employees, and directors of the Company and its Affiliates to stimulate their efforts
toward the continued success of the Company and to operate and manage the business in a manner that
will provide for the long-term growth and profitability of the Company; (b) encourage stock
ownership by certain officers, employees, and directors by providing them with a means to acquire a
proprietary interest in the Company, acquire shares of Stock, or to receive compensation which is
based upon appreciation in the value of Stock; and (c) provide a means of obtaining, rewarding and
retaining officers, employees, and directors.

2.2 Stock Subject to the Plan. Subject to adjustment in accordance with Section 5.2,
Eighteen Million, Two Hundred and Fifty Thousand (18,250,000) shares of Stock (the “Maximum Plan
Shares”) are hereby reserved exclusively for issuance upon exercise or payment pursuant to Awards,
all or any of which may be pursuant to any one or more Award, including without limitation,
Incentive Stock Options. Any shares of Stock made subject to Awards of Options or Stock
Appreciation Rights shall be counted against this number as one (1) share of Stock for every one
(1) share of Stock issued. Any shares of Stock granted as an Award other than Options or Stock
Appreciation Rights shall be counted against this number as two and one-quarter (2.25) shares of
Stock for every one (1) share of Stock issued. Shares of Stock shall not be deemed to have been
issued pursuant to the Plan with respect to any portion of an Award that is settled in cash. The
shares of Stock attributable to the nonvested, unpaid, unexercised, unconverted or otherwise
unsettled portion of any Award that is forfeited or cancelled or expires or terminates for any
reason without becoming vested, paid, exercised, converted or otherwise settled in full will again
be available for purposes of the Plan. For purposes of determining the number of shares of Stock
issued upon the exercise, settlement or grant of an Award under this Section, any shares of Stock
withheld to satisfy tax withholding obligations shall be considered issued under the Plan.

2.3 Administration of the Plan. 

(a) The Plan is administered by the Committee.  The Committee has full authority in its
discretion to determine the officers, employees, and directors of the Company or its
Affiliates to whom Awards will be granted and the terms and provisions of Awards, subject to
the Plan. Subject to the provisions of the Plan, the Committee has full and conclusive
authority to interpret the Plan; to prescribe, amend and rescind rules and regulations
relating to the Plan; to determine the terms and provisions of the respective Award
Agreements and to make all other determinations necessary or advisable for the proper
administration of the Plan.  The Committee’s determinations under the Plan need not be
uniform and may be made by it selectively among persons who receive, or are eligible to
receive, Awards under the Plan (whether or not such persons are similarly situated).  The
Committee’s decisions are final and binding on all Participants. Each member of the
Committee shall serve at the discretion of the Board of Directors and the Board of Directors
may from time to time remove members from or add members to the Committee. Vacancies on the
Committee shall be filled by the Board of Directors.

(b) Notwithstanding any other provision of this Plan, the Board of Directors may by
resolution authorize one or more officers of the Company and/or the Chairman of the
Compensation Committee of the Board of Directors to do one or both of the following: (1)
designate individuals (other than officers or directors of the Company or any Affiliate who
are subject to Section 16 of the Securities Exchange Act of 1934, as amended) to receive
Awards under the Plan, and (2) determine the number of shares of Stock subject to such
Awards; provided however, that the resolution shall specify the total number of shares of
Stock that may be awarded subject to such Awards.

2.4 Eligibility and Limits.  Awards may be granted only to officers, employees, and
directors of the Company or any Affiliate of the Company; provided, however, that an Incentive
Stock Option may only be granted to an employee of the Company or any Parent or Subsidiary.  In the
case of Incentive Stock Options, the aggregate Fair Market Value (determined as of the date an
Incentive Stock Option is granted) of Stock with respect to which stock options intended to meet
the requirements of Code Section 422 become exercisable for the first time by an individual during
any calendar year under all plans of the Company and its Subsidiaries may not exceed $100,000;
provided further, that if the limitation is exceeded, the Incentive Stock Option(s) which cause the
limitation to be exceeded will be treated as Non-Qualified Stock Option(s). To the extent
required under Section 162(m) of the Code and the regulations thereunder, for compensation to be
treated as qualified performance-based compensation, subject to adjustment in accordance with
Section 5.2, the maximum number of shares of Stock with respect to which (a) Options, (b) Stock
Appreciation Rights, and (c) other Awards (other than Performance Awards) to the extent they are
granted with the intent that they qualify as qualified performance-based compensation under Section
162(m) of the Code may be granted during any calendar year to any employee may not exceed One
Million (1,000,000). To the extent required under Section 162(m) of the Code and the regulations
thereunder, for compensation to be treated as qualified performance-based compensation, the maximum
aggregate dollar amount that may be paid in any calendar year to an employee with respect to
Performance Awards may not exceed Ten Million Dollars ($10,000,000). If, after grant, an Option is
cancelled, the cancelled Option shall continue to be counted against the maximum number of shares
for which options may be granted to an employee as described in this Section 2.4.

2.5 Outside Director Awards. Each Outside Director may be granted Awards (each an
“Outside Director Award”) each fiscal year for up to Seventy-Five Thousand (75,000) shares of
Stock, as determined by the Board of Directors. Notwithstanding anything to the contrary in this
Plan, the foregoing limitation shall be subject to adjustment under Section 5.2. The number of
shares of Stock subject to each Outside Director Award or the formula pursuant to which such number
shall be determined, the type or types of Awards included in the Outside Director Awards, the date
of grant and the vesting, expiration and other terms applicable to such Outside Director Awards
shall be specified from time to time by the Board of Directors, subject to the terms of this Plan,
including the terms specified in Section 3.

SECTION 3

TERMS OF AWARDS

3.1 Terms and Conditions of All Awards.

(a) The number of shares of Stock as to which an Award may be granted will be
determined by the Committee in its sole discretion, subject to the provisions of Section 2.2
as to the total number of shares available for grants under the Plan and subject to the
limits in Section 2.4.

(b) Each Award will be evidenced by an Award Agreement in such form and containing such
terms, conditions and restrictions as the Committee may determine to be appropriate,
including without limitation, Performance Goals, if any, that must be achieved as a
condition to vesting or settlement of the Award, or be made subject to the terms of an Award
Program, containing such terms, conditions and restrictions as the Committee may determine
to be appropriate, including without limitation, Performance Goals that must be achieved as
a condition to vesting or settlement of the Award. Performance Goals, if any, attributable
to any Award which is intended to be “performance-based” compensation under Code Section
162(m) shall be established before twenty-five percent (25%) of the Performance Period has
elapsed, but in no event later than ninety (90) days after the first day of a Performance
Period. At the time any Performance Goals are established, the outcome as to whether the
Performance Goals will be met must be substantially uncertain. If any Performance Goals are
established as a condition to vesting or settlement of an Award, the Committee shall certify
in writing that the applicable Performance Goals were in fact satisfied before such Award is
vested or settled, as applicable. Each Award Agreement or Award Program is subject to the
terms of the Plan and any provisions contained in the Award Agreement or Award Program that
are inconsistent with the Plan are null and void. To the extent an Award is subject to
Performance Goals with the intent that the Award constitute performance-based compensation
under Code Section 162(m), the Committee shall comply with all applicable requirements under
Code Section 162(m) and the rules and regulations promulgated thereunder in granting and
settling such Award. The Committee may, but is not required to, structure any Award so as
to qualify as performance-based compensation under Code Section 162(m).

(c) The date as of which an Award is granted will be the date on which the Committee
has approved the terms and conditions of the Award and has determined the recipient of the
Award and the number of shares, if any, covered by the Award, and has taken all such other
actions necessary to complete the grant of the Award or such later date as may be specified
in the approval of such Award.

(d) Any Award may be granted in connection with all or any portion of a previously or
contemporaneously granted Award. Exercise or vesting of an Award granted in connection with
another Award may result in a pro rata surrender or cancellation of any related Award, as
specified in the applicable Award Agreement or Award Program.

(e) Awards are not transferable or assignable except by will or by the laws of descent
and distribution and are exercisable, during the Participant’s lifetime, only by the
Participant; or in the event of the Disability of the Participant, by the legal
representative of the Participant; or in the event of death of the Participant, by the legal
representative of the Participant’s estate or if no legal representative has been appointed,
by the successor in interest determined under the Participant’s will; except to the extent
that the Committee may provide otherwise as to any Awards other than Incentive Stock
Options.

(f) After the date of grant of an Award, the Committee may, in its sole discretion,
modify the terms and conditions of an Award, except to the extent that such modification
would be inconsistent with other provisions of the Plan or would adversely affect the rights
of a Participant under the Award (except as otherwise permitted under the Plan).

3.2 Terms and Conditions of Options.  Each Option granted under the Plan must be
evidenced by an Award Agreement. At the time any Option is granted, the Committee will determine
whether the Option is to be an Incentive Stock Option described in Code Section 422 or a
Non-Qualified Stock Option, and the Option must be clearly identified as to its status as an
Incentive Stock Option or a Non-Qualified Stock Option. Incentive Stock Options may only be
granted to employees of the Company or any Subsidiary or Parent. At the time any Incentive Stock
Option granted under the Plan is exercised, the Company will be entitled to legend the certificates
representing the shares of Stock purchased pursuant to the Option to clearly identify them as
representing the shares purchased upon the exercise of an Incentive Stock Option. An Incentive
Stock Option may only be granted within ten (10) years from the earlier of the date the Plan is
adopted or approved by the Company’s stockholders.

(a) Option Price. Subject to adjustment in accordance with Section 5.2 and the
other provisions of this Section 3.2, the exercise price (the “Exercise Price”) per share of
Stock purchasable under any Option must be as set forth in the applicable Award Agreement,
but in no event may it be less than the Fair Market Value on the date the Option is granted.
With respect to each grant of an Incentive Stock Option to a Participant who is an Over 10%
Owner, the Exercise Price may not be less than 110% of the Fair Market Value on the date the
Option is granted. Except as provided in Section 5.2, without approval of the Company’s
stockholders the exercise price of an Option may not be amended or modified after the grant
of the Option, and an Option may not be surrendered in consideration of, or in exchange for,
the grant of a new Option having an exercise price below that of the Option that was
surrendered, Stock or cash.

(b) Option Term.  Any Incentive Stock Option granted to a Participant who is
not an Over 10% Owner is not exercisable after the expiration of eight (8) years after the
date the Option is granted. Any Incentive Stock Option granted to an Over 10% Owner is not
exercisable after the expiration of five (5) years after the date the Option is granted.
The term of any Non-Qualified Stock Option shall be as specified in the applicable Award
Agreement but shall be no greater than eight (8) years after the date the Option is granted.

(c) Payment.  Payment for all shares of Stock purchased pursuant to exercise of
an Option will be made in any form or manner authorized by the Committee in the Award
Agreement or by amendment thereto, including, but not limited to, cash or, if the Award
Agreement provides:

(i) by delivery to the Company of a number of shares of Stock which have been
owned by the holder for at least six (6) months prior to the date of exercise having
an aggregate Fair Market Value of not less than the product of the Exercise Price
multiplied by the number of shares the Participant intends to purchase upon exercise
of the Option on the date of delivery;

(ii) in a cashless exercise through a broker; or

(iii) by having a number of shares of Stock withheld, the Fair Market Value of
which as of the date of exercise is sufficient to satisfy the Exercise Price.

Payment must be made at the time that the Option or any part thereof is exercised, and no
            shares may be issued or delivered upon exercise of an Option until full payment has been
made by the Participant.  The holder of an Option, as such, has none of the rights of a
stockholder.

(d) Conditions to the Exercise of an Option.  Each Option granted under the
Plan is exercisable by whom, at such time or times, or upon the occurrence of such event or
events, and in such amounts, as the Committee specifies in the Award Agreement; provided,
however, that subsequent to the grant of an Option, the Committee, at any time before
complete termination of such Option, may modify the terms of an Option to the extent not
prohibited by the terms of the Plan, including, without limitation, accelerating the time or
times at which such Option may be exercised in whole or in part, including, without
limitation, upon a change in control and may permit the Participant or any other designated
person to exercise the Option, or any portion thereof, for all or part of the remaining
Option term, notwithstanding any provision of the Award Agreement to the contrary.

(e) Termination of Incentive Stock Options.  With respect to an Incentive Stock
Option, in the event of Termination of Employment of a Participant, the Option or portion
thereof held by the Participant which is unexercised will expire, terminate, and become
unexercisable no later than the expiration of three (3) months after the date of Termination
of Employment; provided, however, that in the case of a holder whose Termination of
Employment is due to death or Disability, one (1) year will be substituted for such three
(3) month period; provided, further that such time limits may be exceeded by the Committee
under the terms of the grant, in which case, the Incentive Stock Option will be a
Non-Qualified Option if it is exercised after the time limits that would otherwise apply.
For purposes of this Subsection (e), Termination of Employment of the Participant will not
be deemed to have occurred if the Participant is employed by another corporation (or a
parent or subsidiary corporation of such other corporation) which has assumed the Incentive
Stock Option of the Participant in a transaction to which Code Section 424(a) is applicable.

(f) Special Provisions for Certain Substitute Options.  Notwithstanding
anything to the contrary in this Section 3.2, any Option issued in substitution for an
option previously issued by another entity, which substitution occurs in connection with a
transaction to which Code Section 424(a) is applicable, may provide for an exercise price
computed in accordance with such Code Section and the regulations thereunder and may contain
such other terms and conditions as the Committee may prescribe to cause such substitute
Option to contain as nearly as possible the same terms and conditions (including the
applicable vesting and termination provisions) as those contained in the previously issued
option being replaced thereby.

(g) No Reload Grants. Options shall not be granted under the Plan in
consideration for and shall not be conditioned upon the delivery of shares of Stock to the
Company in payment of the exercise price and/or tax withholding obligation under any other
option held by a Participant.

(h) No Repricing. Except as provided in Section 5.2, without the approval of
the Company’s stockholders the exercise price of an Option may not be amended or modified
after the grant of the Option and an Option may not be surrendered in consideration of, or
in exchange for, the grant of a new Option having an exercise price below that of the Option
that was surrendered, Stock, cash, or any other Award.

3.3 Terms and Conditions of Stock Appreciation Rights. Each Stock Appreciation Right
granted under the Plan must be evidenced by an Award Agreement.  A Stock Appreciation Right
entitles the Participant to receive the excess of (1) the Fair Market Value of a specified or
determinable number of shares of the Stock at the time of payment or exercise over (2) a specified
or determinable price which may not be less than the Fair Market Value of the Stock on the date of
grant. A Stock Appreciation Right granted in connection with another Award may only be exercised
to the extent that the related Award has not been exercised, paid or otherwise settled.

(a) Settlement. Upon settlement of a Stock Appreciation Right, the Company
must pay to the Participant the appreciation in cash or shares of Stock (valued at the
aggregate Fair Market Value on the date of payment or exercise) as provided in the Award
Agreement or, in the absence of such provision, as the Committee may determine.

(b) Term.  The term of any Stock Appreciation Right shall be as specified in
the applicable Award Agreement but shall be no greater than eight (8) years after the date
the Stock Appreciation Right is granted.

(c) Conditions to Exercise. Each Stock Appreciation Right granted under the
Plan is exercisable or payable at such time or times, or upon the occurrence of such event
or events, and in such amounts, as the Committee specifies in the Award Agreement; provided,
however, that subsequent to the grant of a Stock Appreciation Right, the Committee, at any
time before complete termination of such Stock Appreciation Right, may accelerate the time
or times at which such Stock Appreciation Right may be exercised or paid in whole or in
part.

(d) No Repricing. Except as provided in Section 5.2, without the approval of
the Company’s stockholders the price of a Stock Appreciation Right may not be amended or
modified after the grant of the Stock Appreciation Right, and a Stock Appreciation Right may
not be surrendered in consideration of, or in exchange for, the grant of a new Stock
Appreciation Right having a price below that of the Stock Appreciation Right that was
surrendered, Stock, cash, or any other Award.

3.4 Terms and Conditions of Stock Awards. The number of shares of Stock subject to a
Stock Award and restrictions or conditions on such shares, if any, will be as the Committee
determines, and the certificate for such shares will bear evidence of any restrictions or
conditions.  Subsequent to the date of the grant of the Stock Award, the Committee has the power to
permit, in its discretion, an acceleration of the expiration of an applicable restriction period
with respect to any part or all of the shares awarded to a Participant. The Committee may require
a cash payment from the Participant in an amount no greater than the aggregate Fair Market Value of
the shares of Stock awarded determined at the date of grant in exchange for the grant of a Stock
Award or may grant a Stock Award without the requirement of a cash payment.

3.5 Terms and Conditions of Dividend Equivalent Rights. A Dividend Equivalent Right
entitles the Participant to receive payments from the Company in an amount determined by reference
to any cash dividends paid on a specified number of shares of Stock to Company stockholders of
record during the period such rights are effective. The Committee may impose such restrictions and
conditions on any Dividend Equivalent Right as the Committee in its discretion shall determine,
including the date any such right shall terminate and may reserve the right to terminate, amend or
suspend any such right at any time.

(a) Payment. Payment in respect of a Dividend Equivalent Right may be made by
the Company in cash or shares of Stock (valued at Fair Market Value as of the date payment
is owed) as provided in the Award Agreement or Award Program, or, in the absence of such
provision, as the Committee may determine.

(b) Conditions to Payment. Each Dividend Equivalent Right granted under the
Plan is payable at such time or times, or upon the occurrence of such event or events, and
in such amounts, as the Committee specifies in the applicable Award Agreement or Award
Program; provided, however, that subsequent to the grant of a Dividend Equivalent Right, the
Committee, at any time before complete termination of such Dividend Equivalent Right, may
accelerate the time or times at which such Dividend Equivalent Right may be paid in whole or
in part.

3.6 Terms and Conditions of Performance Awards. A Performance Award shall entitle the
Participant to receive, at a specified future date, payment of an amount equal to all or a portion
of either (i) the value of a specified or determinable number of units (stated in terms of a
designated or determinable dollar amount per unit) granted by the Committee, or (ii) a percentage
or multiple of a specified amount determined by the Committee. At the time of the grant, the
Committee must determine the base value of each unit; the number of units subject to a Performance
Award, the specified amount and the percentage or multiple of the specified amount, as may be
applicable; and the Performance Goals applicable to the determination of the ultimate payment value
of the Performance Award. The Committee may provide for an alternate base value for each unit or an
alternate percentage or multiple under certain specified conditions.

(a) Payment. Payment in respect of Performance Awards may be made by the
Company in cash or shares of Stock (valued at Fair Market Value as of the date payment is
owed) as provided in the applicable Award Agreement or Award Program or, in the absence of
such provision, as the Committee may determine.

(b) Conditions to Payment. Each Performance Award granted under the Plan shall
be payable at such time or times, or upon the occurrence of such event or events, and in
such amounts, as the Committee may specify in the applicable Award Agreement or Award
Program; provided, however, that subsequent to the grant of a Performance Award, the
Committee, at any time before complete termination of such Performance Award, may accelerate
the time or times at which such Performance Award may be paid in whole or in part.

3.7 Terms and Conditions of Restricted Stock Units. Restricted Stock Units shall
entitle the Participant to receive, at a specified future date or event, payment of an amount equal
to all or a portion of the Fair Market Value of a specified number of shares of Stock at the end of
a specified period. At the time of the grant, the Committee will determine the factors which will
govern the portion of the Restricted Stock Units so payable, including, at the discretion of the
Committee, any performance criteria that must be satisfied as a condition to payment. Restricted
Stock Unit awards containing performance criteria may be designated as performance share awards.

(a) Payment. Payment in respect of Restricted Stock Units may be made by the
Company in cash or shares of Stock (valued at Fair Market Value as of the date payment is
owed) as provided in the applicable Award Agreement or Award Program, or, in the absence of
such provision, as the Committee may determine.

(b) Conditions to Payment. Each Restricted Stock Unit granted under the Plan
is payable at such time or times, or upon the occurrence of such event or events, and in
such amounts, as the Committee may specify in the applicable Award Agreement or Award
Program; provided, however, that subsequent to the grant of a Restricted Stock Unit, the
Committee, at any time before complete termination of such Restricted Stock Unit, may
accelerate the time or times at which such Restricted Stock Unit may be paid in whole or in
part.

3.8 Terms and Conditions of Phantom Stock. Phantom Stock shall entitle the
Participant to receive, at a specified future date, payment of an amount equal to all or a portion
of the Fair Market Value of a specified number of shares of Stock at the end of a specified period.
At the time of the grant, the Committee shall determine the factors which will govern the portion
of the rights so payable, including, at the discretion of the Committee, any Performance Goals that
must be satisfied as a condition to payment.

(a) Payment. Payment in respect of Phantom Stock may be made by the Company in
cash or shares of Stock (valued at Fair Market Value on the date of payment) as provided in
the Award Agreement, or, in the absence of such provision, as the Committee may determine.

(b) Conditions to Payment. Each grant of Phantom Stock under the Plan shall be
payable at such time or times, or upon the occurrence of such event or events, and in such
amounts, as the Committee shall specify in the applicable Award Agreement or Award Program;
provided, however, that subsequent to the grant of a Phantom Stock, the Committee, at any
time before complete termination of such Phantom Stock, may accelerate the time or times at
which such Phantom Stock may be paid in whole or in part.

3.9 Treatment of Awards Upon Termination of Employment. Except as otherwise provided
by Plan Section 3.2(e), any award under this Plan to a Participant who has experienced a
Termination of Employment or termination of some other service relationship with the Company and
its Affiliates may be cancelled, accelerated, paid or continued, as provided in the applicable
Award Agreement or Award Program, or, as the Committee may otherwise determine to the extent not
prohibited by the Plan. The portion of any Award exercisable in the event of continuation or the
amount of any payment due under a continued Award may be adjusted by the Committee to reflect the
Participant’s period of service from the date of grant through the date of the Participant’s
Termination of Employment or other service relationship or such other factors as the Committee
determines are relevant to its decision to continue the Award.

SECTION 4

RESTRICTIONS ON STOCK

4.1 Escrow of Shares. Any certificates representing the shares of Stock issued under
the Plan will be issued in the Participant’s name, but, if the applicable Award Agreement or Award
Program so provides, the shares of Stock will be held by a custodian designated by the Committee
(the “Custodian”). Each applicable Award Agreement or Award Program providing for transfer of
shares of Stock to the Custodian must appoint the Custodian as the attorney-in-fact for the
Participant for the term specified in the applicable Award Agreement or Award Program, with full
power and authority in the Participant’s name, place and stead to transfer, assign and convey to
the Company any shares of Stock held by the Custodian for such Participant, if the Participant
forfeits the shares under the terms of the applicable Award Agreement or Award Program.  During the
period that the Custodian holds the shares subject to this Section, the Participant is entitled to
all rights, except as provided in the applicable Award Agreement or Award Program, applicable to
shares of Stock not so held. Any dividends declared on shares of Stock held by the Custodian must,
as provided in the applicable Award Agreement or Award Program, be paid directly to the Participant
or, in the alternative, be retained by the Custodian or by the Company until the expiration of the
term specified in the applicable Award Agreement or Award Program and shall then be delivered,
together with any proceeds, with the shares of Stock to the Participant or to the Company, as
applicable.

4.2 Restrictions on Transfer. The Participant does not have the right to make or
permit to exist any disposition of the shares of Stock issued pursuant to the Plan except as
provided in the Plan or the applicable Award Agreement or Award Program. Any disposition of the
shares of Stock issued under the Plan by the Participant not made in accordance with the Plan or
the applicable Award Agreement or Award Program will be void. The Company will not recognize, or
have the duty to recognize, any disposition not made in accordance with the Plan and the applicable
Award Agreement or Award Program, and the shares so transferred will continue to be bound by the
Plan and the applicable Award Agreement or Award Program.

SECTION 5

GENERAL PROVISIONS

5.1 Withholding.  The Company must deduct from all cash distributions under the Plan
any taxes required to be withheld by federal, state or local government. Whenever the Company
proposes or is required to issue or transfer shares of Stock under the Plan or upon the vesting of
any Award, the Company has the right to require the recipient to remit to the Company an amount
sufficient to satisfy any federal, state and local tax withholding requirements prior to the
delivery of any certificate or certificates for such shares or the vesting of such Award. A
Participant may pay the withholding obligation in cash, or, if and to the extent the applicable
Award Agreement or Award Program so provides, a Participant may elect to have the number of shares
of Stock he is to receive reduced by, or tender back to the Company, the smallest number of whole
shares of Stock which, when multiplied by the Fair Market Value of the shares of Stock determined
as of the Tax Date (defined below), is sufficient to satisfy federal, state and local, if any,
withholding obligation arising from exercise or payment of an Award (a “Withholding Election”).

5.2 Changes in Capitalization; Merger; Liquidation.

(a) The number of shares of Stock reserved for the grant of Awards under the Plan; the
number of shares of Stock reserved for issuance pursuant to Awards granted under the Plan;
the Exercise Price of each outstanding Option; the strike price of each outstanding Stock
Appreciation Right; the specified number of shares of Stock to which each Award pertains;
and the maximum number of shares as to which Awards may be granted, shall be proportionately
adjusted for any nonreciprocal transaction between the Company and the holders of capital
stock of the Company that causes the per share value of the shares of Stock underlying an
Award to change, such as a stock dividend, stock split, spin-off, rights offering, or
recapitalization through a large, nonrecurring cash dividend (each, an “Equity
Restructuring”). Any adjustment described in the preceding sentence may include a
substitution in whole or in part of other equity securities of the issuer and the class
involved in such Equity Restructuring in lieu of the shares of Stock that are subject to the
Award.

(b) In the event of a merger, consolidation, reorganization, extraordinary dividend,
spin-off, sale of substantially all of the Company’s assets, other change in capital
structure of the Company, tender offer for shares of Stock, or a change in control of the
Company (as defined by the Committee in the applicable Award Agreement) that in each case
does not constitute an Equity Restructuring, the Committee may make such adjustments with
respect to Awards and take such other action as it deems necessary or appropriate,
including, without limitation, the substitution of new Awards, or the adjustment of
outstanding Awards, the acceleration of Awards, the removal of restrictions on outstanding
Awards, or the termination of outstanding Awards in exchange for the cash value determined
in good faith by the Committee of the vested and/or unvested portion of the Award, all as
may be provided in the applicable Award Agreement or, if not expressly addressed therein, as
the Committee subsequently may determine in its sole discretion. Any adjustment pursuant to
this Section 5.2 may provide, in the Committee’s discretion, for the elimination without
payment therefor of any fractional shares that might otherwise become subject to any Award,
but except as set forth in this Section may not otherwise diminish the then value of the
Award.

(c) The existence of the Plan and the Awards granted pursuant to the Plan shall not
affect in any way the right or power of the Company to make or authorize any adjustment,
reclassification, reorganization or other change in its capital or business structure, any
merger or consolidation of the Company, any issue of debt or equity securities having
preferences or priorities as to the Stock or the rights thereof, the dissolution or
liquidation of the Company, any sale or transfer of all or any part of its business or
assets, or any other corporate act or proceeding.

5.3 Awards to Non-U.S. Employees. The Committee shall have the power and authority to
determine which Affiliates shall be covered by this Plan and which employees outside the U.S. shall
be eligible to participate in the Plan. The Committee may adopt, amend or rescind rules,
procedures or sub-plans relating to the operation and administration of the Plan to accommodate the
specific requirements of local laws, procedures, and practices. Without limiting the generality of
the foregoing, the Committee is specifically authorized to adopt rules, procedures and sub-plans
with provisions that limit or modify rights on death, disability or retirement or on termination of
employment; available methods of exercise or settlement of an award; payment of income, social
insurance contributions and payroll taxes; the withholding procedures and handling of any stock
certificates or other indicia of ownership which vary with local requirements. The Committee may
also adopt rules, procedures or sub-plans applicable to particular Affiliates or locations.

5.4 Compliance with Code. 

(a) Code Section 422. All Incentive Stock Options to be granted hereunder are
intended to comply with Code Section 422, and all provisions of the Plan and all Incentive
Stock Options granted hereunder must be construed in such manner as to effectuate that
intent.

(b) Code Section 409A. Except to the extent specifically provided otherwise by
the Committee, Awards under the Plan are intended to satisfy the requirements of Section
409A of the Code (and the Treasury Department guidance and regulations issued thereunder) so
as to avoid the imposition of any additional taxes or penalties under Code Section 409A. If
the Committee determines that an Award, Award Agreement, Award Program, payment,
distribution, deferral election, transaction or any other action or arrangement contemplated
by the provisions of the Plan would, if undertaken, cause a Participant to become subject to
any additional taxes or other penalties under Code Section 409A, then unless the Committee
specifically provides otherwise, such Award, Award Agreement, Award Program, payment,
distribution, deferral election, transaction or other action or arrangement shall not be
given effect to the extent it causes such result and the related provisions of the Plan,
Award Agreement, and / or Award Program will be deemed modified, or, if necessary, suspended
in order to comply with the requirements of Code Section 409A to the extent determined
appropriate by the Committee, in each case without the consent of or notice to the
Participant. To the extent any provision in the Plan, Award Agreement, or Award Program
gives the Committee discretion to modify the terms and conditions of an Award, and the mere
possession (as opposed to the exercise) of such discretion would result in adverse tax
consequences to any Participant, then unless the Committee specifically provides otherwise,
the Committee shall not have such power.

5.5 Right to Terminate Employment or Service.  Nothing in the Plan or in any Award
Agreement confers upon any Participant the right to continue as an officer, employee, or director
of the Company or any of its Affiliates or affect the right of the Company or any of its Affiliates
to terminate the Participant’s employment or services at any time.

5.6 Non-Alienation of Benefits. Other than as provided herein, no benefit under the
Plan may be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge; and any attempt to do so shall be void. No such benefit may, prior to
receipt by the Participant, be in any manner liable for or subject to the debts, contracts,
liabilities, engagements or torts of the Participant.

5.7 Restrictions on Delivery and Sale of Shares; Legends. Each Award is subject to
the condition that if at any time the Committee, in its discretion, shall determine that the
listing, registration or qualification of the shares covered by such Award upon any securities
exchange or under any state or federal law is necessary or desirable as a condition of or in
connection with the granting of such Award or the purchase or delivery of shares thereunder, the
delivery of any or all shares pursuant to such Award may be withheld unless and until such listing,
registration or qualification shall have been effected. If a registration statement is not in
effect under the Securities Act of 1933 or any applicable state securities laws with respect to the
shares of Stock purchasable or otherwise deliverable under Awards then outstanding, the Committee
may require, as a condition of exercise of any Option or as a condition to any other delivery of
Stock pursuant to an Award, that the Participant or other recipient of an Award represent, in
writing, that the shares received pursuant to the Award are being acquired for investment and not
with a view to distribution and agree that the shares will not be disposed of except pursuant to an
effective registration statement, unless the Company shall have received an opinion of counsel that
such disposition is exempt from such requirement under the Securities Act of 1933 and any
applicable state securities laws. The Company may include on certificates representing shares
delivered pursuant to an Award such legends referring to the foregoing representations or
restrictions or any other applicable restrictions on resale as the Company, in its discretion,
shall deem appropriate.

5.8 Listing and Legal Compliance. The Committee may suspend the exercise or payment
of any Award so long as it determines that securities exchange listing or registration or
qualification under any securities laws is required in connection therewith and has not been
completed on terms acceptable to the Committee.

5.9 Termination and Amendment of the Plan. The Board of Directors at any time may
amend or terminate the Plan without shareholder approval; provided, however, that the Board of
Directors shall obtain shareholder approval for any amendment to the Plan that increases the number
of shares of Stock available under the Plan, materially expands the classes of individuals eligible
to receive Awards, materially expands the type of awards available for issuance under the Plan, or
would otherwise require shareholder approval under the rules of the applicable exchange. No such
termination or amendment without the consent of the holder of an Award may adversely affect the
rights of the Participant under such Award.

5.10 Stockholder Approval. The Plan must be submitted to the stockholders of the
Company for their approval within twelve (12) months before or after the adoption of the Plan by
the Board of Directors of the Company. If such approval is not obtained, any Award granted
hereunder will be void.

5.11 Choice of Law.  The laws of the State of Delaware shall govern the Plan, to the
extent not preempted by federal law, without reference to the principles of conflict of laws.

5.12 Effective Date of Plan.  The Plan shall become effective as of the date the Plan
was approved by the Board of Directors.

IN WITNESS WHEREOF, the Company has executed this Plan, and the Plan has become effective as
of      , 2007.

BMC SOFTWARE, INC.

By:

Title:

3

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