Document:

Compensation Letter

 Exhibit 10.2 
 July 25, 2007 
 Alfred S. Chuang 
 Chief Executive
Officer and President 
 Dear Alfred: 
 The purpose of this
letter is to summarize the compensation and other benefits recommended by the Compensation Committee and approved by the Board of Directors in connection with your continued employment as Chief Executive Officer and President of BEA Systems, Inc.
Except as otherwise noted, these items apply to the Company’s 2008 fiscal year, beginning February 1, 2007. These items will be paid and/or awarded consistent with the Company’s usual and customary practices, procedures and approval
requirements, to which you are subject 
  

	 	•	 	 Cash Compensation 

  

	 	•	 	 Base Salary: $900,000, less applicable withholdings 

  

	 	•	 	 Target Bonus: 100% of base salary, in accordance with the Company’s Fiscal Year 2008 Executive Staff Bonus Plan 

  

	 	•	 	 Equity Compensation 

  

	 	•	 	 Option: Option for 1,500,000 shares to be granted in accordance with the Company’s 2006 Stock Incentive Plan and standard form of option agreement. Subject to
your approval of this letter, the option will be granted to you in accordance with the Company’s standard equity grant practices with an exercise price equal to the closing market price of the Company’s common stock on the date of grant.

  

	 	•	 	 Perquisites 

  

	 	•	 	 Reimbursement for Tax/Financial/Estate Planning Assistance: Up to $10,000; 

  

	 	•	 	 Reimbursement for Air Travel: Business-related travel only, consistent with Company policy; 

  

	 	•	 	 Use of Company Car/Driver and Related Expenses: For business and/or personal use consistent with past practices, provided that you will be responsible for all tax
consequences resulting from any imputed income attributable to personal use in accordance with applicable tax rules; 

  

	 	•	 	 Physical Exam: Consistent with past practices. 

	 	•	 	 Other Benefits (e.g., medical, dental, 401(k), vacation, etc.): You will be permitted to participate in the Company’s standard executive and employee
benefit plans and programs. 

  

	 	•	 	 Conflicting Employment: You will not engage in any other employment, occupation, consulting or other business activity directly related to the business in
which the Company is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that could conflict with your obligations to the Company.  

  

	 	•	 	 At-Will Employment: Your employment is and will continue to be “at-will.” This means that both you and BEA have the right to terminate your
employment at any time, with or without advance notice, and with or without cause. The terms of your employment also may be altered at any time, with or without cause, at the discretion of BEA. No one other than the Board of Directors of BEA has the
authority to alter the at-will nature of your employment, to enter into an agreement for employment for a specified period of time, or to make any agreement contrary to BEA’s policy of at-will employment. Any such agreement must be in writing
and signed by the Board of Directors or their designee and you. As a result, in the event your employment terminates for any reason, you will not be entitled to any severance, accelerated vesting or other benefits, except as may be provided under
the Company’s existing plans and programs or as agreed to in writing at the time. The terms described in this letter shall be the terms of your employment with BEA and shall supersede any prior oral or written agreement, understanding,
representation or commitment regarding your employment, except that the Amended and Restated Employment Agreement dated November 2003 remains in effect and is not changed or modified by this letter.  

 The validity, interpretation, enforceability, and performance of this letter shall be governed by and construed in accordance with the laws of the State
of California. 
 If you have any questions, please do not hesitate to call me. 
 Very truly yours, 
 BEA Systems, Inc.

  

	
	/s/ Richard Schlosberg     8/6/07
	Richard T. Schlosberg
	Chairman, Compensation Committee
	Board of Directors

 I acknowledge (i) that I have consulted with or have had the opportunity to consult with
counsel of my own choice concerning the terms and conditions set forth in this letter and have been advised to do so by BEA, and (ii) that I have read and understand the terms and conditions of my employment as set forth in this letter, am
fully aware of their legal effect, and have entered into it freely based on my own judgment. 
  

	
	/s/ Alfred Chuang
	Alfred S. ChuangAcknowledgement Agreement

 Exhibit 10.3 
 ACKNOWLEDGEMENT AGREEMENT 
 This Acknowledgement Agreement (“Agreement”) is entered
into by and between Alfred Chuang and BEA Systems, Inc., a Delaware corporation (“BEA”) (collectively, “Parties”): 
 A.
On August 16, 2006, BEA announced that the Audit Committee of its Board of Directors had commenced an internal review of BEA’s historical stock option grants. On December 4, 2006, BEA announced its determination that under applicable
accounting principles, the actual measurement dates for certain of its stock options differed from the recorded measurement dates for such stock options and that consequently, it would restate previously issued financial statements as necessary. On
February 14, 2007, BEA announced the principal conclusions of the stock option review. 
 B. In connection with its announcement of the
principal conclusions of the review, BEA affirmed its continued confidence in Mr. Chuang’s leadership and integrity. 
 C. As a
result of its review and in connection with its restatement of its financial statements, BEA is adjusting the measurement dates and corresponding exercise prices of a number of its stock option grants, including certain grants to Mr. Chuang.
With respect to such grants, Mr. Chuang has voluntarily agreed to a re-pricing of his outstanding stock options to the exercise prices determined by the Audit Committee as the appropriate price. 
 D. Mr. Chuang previously exercised certain mis-priced stock options from grants in 1998 and 1999, for which the Audit Committee established new
measurement dates. With respect to these exercises, BEA concluded that Mr. Chuang received excess compensation in the amount of $2,467,499 attributable to the difference between the 

 
exercise price on the initial grant date and the exercise price on the appropriate measurement date as determined by the Audit Committee (the
“Mis-pricing Benefit”). BEA concluded that, although Mr. Chuang was not responsible for the mis-pricing of the 1998 and 1999 grants, he was not entitled to and should return the Mis-pricing Benefit to BEA. 
 E. The Parties have agreed to reduce Mr. Chuang’s future compensation by the amount of the Mis-pricing Benefit received in prior years. To
effectuate this reduction in future compensation, the Parties have agreed to cancel, for no consideration, 423,605 of the shares underlying the stock option granted to Mr. Chuang on May 17, 1999. The value of the cancellation is agreed to
be $2,467,499, which represents the difference between the closing price of BEA common stock on the date that this agreement in principle was made (February 8, 2007), $12.70, and the new exercise price of the option determined to be appropriate by
the Audit Committee, $6.875, multiplied by the 423,605 shares underlying the stock option that will be canceled. The Audit Committee has concluded and the Board of Directors has agreed that the share cancellation described in this paragraph,
together with the repricing described in paragraph C, is the appropriate remediation for Mr. Chuang relating to the options-related issues investigated by the Audit Committee. 
 F. The Parties agree to report for U.S. Federal and California state tax purposes the cancellation of Mr. Chuang’s unexercised options
described herein as resulting in no income or deduction for either Party and that the Parties will continue to report the Mis-pricing Benefit as compensation income to Mr. Chuang in the year in which the relevant options were exercised. The
Parties acknowledge that Mr. Chuang is liable and responsible for tax on his compensation income and accordingly, if any tax authority disagrees with such intended tax treatment Mr. Chuang will indemnify BEA for the failure to withhold
taxes (including by allowing BEA to withhold from other compensation), provided, however, that 

  

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if a tax authority attempts to claim taxes from BEA with respect to the cancellation of the options, BEA shall timely request from Mr. Chuang proof that
he had already paid taxes with respect to such cancellation of option, and BEA shall not be entitled to indemnification to the extent that such proof provided relieves BEA of liability for taxes. 
 G. Each of the Parties represents, warrants, and agrees that it has received independent legal advice from its attorneys with respect to the advisability
of executing this Agreement. 
 H. Any amendment to this Agreement must be in writing, must specifically refer to this Agreement, and must be
signed by duly authorized representatives of each of the Parties. 
 I. This Agreement may be executed in any number of counterparts by the
Parties, and when each Party has signed and delivered at least one such counterpart to the other Party, each counterpart shall be deemed an original and taken together shall constitute one and the same agreement that shall be binding and effective
as to all Parties. 
 IN WITNESS WHEREOF, the Parties hereto have approved and executed this Agreement on the dates set forth opposite their
respective signatures. 
 EXECUTED by the Parties as follows: 
  
  

					
	Dated: August 31, 2007	 		 	/s/ Alfred Chuang
	 	 		 	Alfred Chuang
			
	Dated: September 3, 2007	 		 	/s/ D.O. Morton
		 		 	for BEA Systems, Inc.
		 		 	Dean Morton
		 		 	 Chairman, Audit Committee of the
 Board of Directors

  

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