Document:

2005 Incentive Compensation Plan for Executive Officers

 Exhibit 10.2 
  
 Executive Officers 
  
 BORLAND SOFTWARE CORPORATION 
  
 INCENTIVE COMPENSATION PLAN 
  
 FOR EXECUTIVE OFFICERS 
  

	I.	PURPOSE OF THE PLAN 

  
 This Incentive Compensation Plan is intended to promote the interests of Borland Software Corporation, a Delaware corporation (the
“Corporation”), by providing eligible individuals in the Corporation’s employ with the opportunity to participate in a cash bonus program tied to the attainment of personal and corporate performance objectives which will provide them
with a meaningful incentive to remain in the Corporation’s employ and contribute to the Corporation’s financial success. 
  

	II.	DEFINITIONS 

  
 A. “Actual Bonus” shall mean the bonus actually earned by the Participant for one or more Fiscal Quarters in the Year and/or the full
Year, as applicable. 
  
 B. “Base Salary” shall
mean the annual rate of base salary in effect for the Participant at the start of each Year in which he or she participates in the Plan. For an individual who first becomes a Participant after the start of the Year, his or her Base Salary shall be
the annual rate of base salary in effect for him or her on the date of entry into the Plan. In the event a Participant’s Base Salary is increased or decreased during the Year, such adjusted salary shall be reflected in the Fiscal Quarter
following the Fiscal Quarter in which such adjustments took effect, for purposes of calculating the subsequent bonus entitlements of such Participant under the Plan. Base Salary shall be calculated before deduction of (i) any income or employment
tax withholdings, (ii) any contributions made by the Participant to any Code Section 401(k) salary deferral plan or Code Section 125 cafeteria benefit plan now or hereafter established by the Corporation, (iii) any contributions made by the
Participant to the Corporation’s Employee Stock Purchase Plan (“ESPP”), and (iv) any reduction to the Participant’s rate of base salary as a result of any salary reduction election for the Year made by such Participant pursuant
to the Salary Investment Option Grant Program in effect under the Corporation’s 2002 Stock Incentive Plan. The following items of compensation shall not be included in Base Salary: (i) all overtime payments, bonuses, commissions,
profit-sharing distributions and other incentive-type payments, including cash bonuses received under this Plan, (ii) the matching contributions or deferred profit-sharing contributions made by the Corporation under any Code Section 401(a) or 401(k)
plan now or hereafter established and (iii) any and all other contributions (other than Internal Revenue Code Section 401(k) or Section 125 contributions) made on the Participant’s behalf by the Corporation under any employee benefit or welfare
plan now or hereafter established. 
  
 C. “Board”
shall mean the Corporation’s Board of Directors. 
  
 D.
“Code” shall mean the U.S. Internal Revenue Code of 1986, as amended from time to time. 

 E. “Annual Bonus Component” shall mean the portion of the Target Bonus that is
contingent upon the Corporation’s attainment of Corporate Performance Objectives for the Year. 
  
 F. “Corporate Performance Objectives” shall mean the financial or other performance milestones the Corporation must attain as a condition
to the Participant’s entitlement to his or her Target Bonus for the applicable period. Corporate Performance Objectives may be tied to operating income, revenue, earnings per share (on a GAAP or non-GAAP basis), net profit, return on equity,
return on sales, capital or assets and other milestones established from time to time by the Plan Administrator. 
  
 G. “Disability” shall mean the inability of the Participant to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment expected to result in death or to continue for a period of twelve (12) consecutive months or more. 
  
 H. “Earn-Out Date” shall mean, for the Quarterly Bonus Component (if applicable), the last business day of each Fiscal Quarter in the
Year and shall be the date on which the Participant’s entitlement (if any) to a payout of his or her Actual Bonus for that Fiscal Quarter shall first accrue. “Earn-Out Date” shall mean, for the Annual Bonus Component, the last
business day of the Year and shall be the date on which the Participant’s entitlement (if any) to a payout of his or her Actual Bonus for that Year shall first accrue. 
  
 I. “Employee Status” shall mean the individual’s performance of services for the Corporation or any
Participating Subsidiary as a regular full-time employee. 
  
 J.
“Executive Officer” shall mean each executive officer of the Corporation who is subject to the reporting and short-swing liability provisions of Section 16 of the Securities Exchange Act of 1934, as amended and, for purposes of any
particular Year, any other employee of the Company deemed to be a “named executive officer” (as defined in Item 402(a)(3) of Regulation S-K) for such Year. 
  
 K. “Fiscal Quarter” shall mean each of the fiscal quarters within the Year in question under the Plan.

  
 L. “Participant” shall mean each Executive
Officer of the Corporation who participates in the Plan in accordance with the eligibility provisions of Article IV. 
  
 M. “Participating Subsidiary” shall mean any Subsidiary which has, with the written authorization of the Board, extended the benefits of
the Plan to its eligible Participants. The Participating Subsidiaries are listed in the attached Schedule I, which may be amended from time to time by the Plan Administrator. 
  
 N. “Personal Performance Objectives” shall mean the performance goals that the Participant must personally
attain or the performance milestones which his or her business unit must attain as a condition to the Participant’s entitlement to the Quarterly Bonus Component of his or her Target Bonus for the applicable period. 
  

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 O. “Plan” shall mean this Borland Software Corporation Incentive Compensation Plan, as
amended from time to time. 
  
 P. “Plan
Administrator” shall mean the Compensation Committee of the Board in its capacity as administrator of the Plan. 
  
 Q. “Quarterly Bonus Component” shall mean the portion of the Target Bonus that is contingent upon (i) the Corporation’s attainment
of Corporate Performance Objectives in effect for the Fiscal Quarter, and (ii) the Participant’s attainment of the Personal Performance Objectives in effect for the relevant Fiscal Quarter. 
  
 R. “Subsidiary” shall mean any corporation (other than the
Corporation) in an unbroken chain of corporations beginning with the Corporation, provided each such corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or
more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 S. “Target Bonus” shall mean the bonus opportunity provided each Participant for each Year the Plan remains in effect. The Target Bonus
shall be an amount equal to the percentage of the Participant’s Base Salary specified as a potential bonus in the Participant’s employment agreement, or otherwise specified by the Plan Administrator. 
  
 T. “Year” shall mean each fiscal year of the Corporation for
which the Plan remains in effect. 
  

	III.	ADMINISTRATION OF THE PLAN 

  
 A. The Compensation Committee as Plan Administrator shall have full power and authority (subject to the provisions of the Plan) to establish such rules
and regulations as it may deem appropriate for proper plan administration and to make such determinations under, and issue such interpretations of, the Plan as it may deem advisable. Decisions of the Plan Administrator shall be final and binding on
all parties with an interest in the Plan. 
  
 B. The Plan
Administrator shall have the discretionary authority to adjust the established Corporate Performance Objectives for the Year and for a particular Fiscal Quarter should the Plan Administrator determine, in its sole discretion, such adjustments are
required in order to maintain the objectives and purposes of the Plan. For example, if the Plan Administrator determines that a merger or acquisition will affect the Corporation’s ability to achieve the Corporate Performance Objectives, the
Plan Administrator shall have the discretionary authority to adjust the established Corporate Performance Objectives for the Year and for given Fiscal Quarters should the Plan Administrator determine, in its sole discretion, such adjustments are
reasonable in light of the altered financial situation. 
  
 C. The
Plan Administrator shall have the sole and exclusive responsibility to administer all aspects of the Plan with respect to the Participants; provided, however, that the Plan Administrator may delegate any or all of those responsibilities to the
Chairman of the Compensation Committee, in which event such Chairman shall have the authority to administer the Plan with respect to the delegated responsibilities. 
  

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	IV.	ELIGIBILITY 

  
 Unless otherwise determined by the Plan Administrator, each individual who is an Executive Officer of the Corporation at the start of the Year or who is
hired in such capacity within the first twenty-one (21) days of that Year shall qualify as a Participant for that Year. Unless otherwise determined by the Plan Administrator, any individual hired as an Executive Officer by the Corporation after the
first twenty-one (21) days of the Year shall commence participation in the Plan on the first day of the first Fiscal Quarter in that Year in which he or she is such an Executive Officer with at least twenty one (21) days of service in such capacity.

  

	V.	DETERMINATION OF TARGET BONUS 

  
 A. The Target Bonus shall be an amount equal to the percentage of the Participant’s Base Salary specified as a potential bonus in the
Participant’s employment agreement with the Corporation, or otherwise specified by the Plan Administrator. The Plan Administrator may change a Participant’s level of participation for a particular Year or Fiscal Quarter to take into
account any promotion, demotion or substantial change in job responsibilities. Any such change to a Participant’s level placement shall, at the Plan Administrator’s sole discretion, be made either retroactive to the start of the Fiscal
Quarter in which such change to Participant’s status occurs or prospective to the start of the next Fiscal Quarter. 
  
 B. The Target Bonus shall be comprised of the Quarterly Bonus Component (Article VI) and the Annual Bonus Component (Article VII). The percentages of the
Quarterly Bonus Component and the Annual Bonus Component shall be designated by the Plan Administrator. 
  

	VI.	DETERMINATION OF QUARTERLY BONUS COMPONENT 

  
 A. If and as designated by the Plan Administrator, a Participant may earn a percentage of his or her Target Bonus on a quarterly basis. The percentage of
the Target Bonus constituting the Quarterly Bonus Component shall be designated by the Plan Administrator. The Quarterly Performance Component shall be determined as follows: 
  
 (i) The Plan Administrator shall establish the Corporate Performance Objectives for each Fiscal Quarter, and
the Participant shall (in conjunction with his or her manager, which may include the Plan Administrator as applicable) establish Personal Performance Objectives. The Corporation must achieve the Corporate Performance Objectives for the Fiscal
Quarter in order for any quarterly bonus to be earned for that Fiscal Quarter. If the Corporation fails to achieve the Corporate Performance Objectives for the Fiscal Quarter, the Participant shall not be entitled to the Quarterly Bonus Component
for such Fiscal Quarter, regardless of the level of the Participant’s achievement of the Personal Performance Objectives. 
  

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 (ii) At the end of a Fiscal Quarter, the manager for each Participant shall assess the
percentage attainment of the Personal Performance Objectives for the Fiscal Quarter. If the Corporation achieves its Corporate Performance Objectives for the Fiscal Quarter, then the Participant shall be entitled to a bonus for the Fiscal Quarter
equal to the percentage attainment of the Personal Performance Objectives multiplied by the Target Bonus constituting the Quarterly Bonus Component for that Fiscal Quarter. 
  
 B. In the event that the Corporation fails to achieve the Corporate Performance Objectives for any Fiscal Quarter (such that
the Quarterly Bonus Component is not paid for that quarter), but achieves the Corporate Performance Objectives for the Year, then a Participant shall receive a “make-up” payment of an amount equal to the missed Quarterly Bonus
Component(s). The “make-up” payment shall be paid at the same time as the Annual Bonus Component payment is made. 
  

	VII.	DETERMINATION OF ANNUAL BONUS COMPONENT 

  
 If and as designated by the Plan Administrator, a Participant may earn a percentage of his or her Target Bonus on an Annual Basis. The percentage of the
Target Bonus constituting the Annual Bonus Component shall be designated by the Plan Administrator. Unless otherwise determined by the Plan Administrator, Annual Bonus Component shall only be earned if and to the extent the Corporate Performance
Objectives for the Year are achieved by the Corporation. The Actual Bonus earned by a Participant under the Plan for a particular Year shall be determined as follows: 
  
 A. The Plan Administrator shall establish Corporate Performance Objectives for the Year and the formula for determining the
percentage of the Target Bonus attainable based on achievement of the Corporation Performance Objectives for the Year. 
  
 B. Once the Corporate Performance Objectives for the Year are established, the Participant shall be eligible for the Annual Bonus Component if, and to the
extent that, a particular Corporate Performance Objective for the Year is achieved. Unless otherwise determined by the Plan Administrator, the Participant shall not be entitled to any portion of the Annual Bonus Component of the Target Bonus if the
minimum Corporate Performance Objective for the Year as established by the Plan Administrator is not achieved, provided, that in no event shall the Actual Bonus exceed 100% of the Target Bonus if the minimum Corporate Performance Objective
for the Year established by the Plan Administrator is not achieved. 
  
 C. Unless otherwise determined by the Plan Administrator, if the individual becomes a Participant after the start of the Year, then the dollar amount of his or her Annual Bonus Component for that Year shall be pro-rated by multiplying such
dollar amount by a fraction, the numerator of which is the number of calendar months of Employee Status completed by the Participant individual in such Year (rounded to the nearest whole month), and the denominator is twelve (12). 
  

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	VIII.	ELIGIBILITY FOR ACTUAL BONUS AND PAYOUT 

  
 A. A Participant shall not earn or otherwise become entitled to any Actual Bonus for a particular Fiscal Quarter or Year unless such Participant continues
in Employee Status through the Earn-Out Date for that Fiscal Quarter or Year. However, should a Participant cease Employee Status before the Earn-Out Date in a particular Fiscal Quarter or Year by reason of death or Disability, then the Participant
(or his or her estate) shall accordingly, receive a dollar amount, payable in accordance with the payment schedule set forth in Paragraph B below, equal to (i) the portion of the Actual Bonus (if any) such Participant would have otherwise earned for
that Fiscal Quarter based on his or her personal performance for the portion of the Fiscal Quarter preceding his or her death or Disability, and (ii) a portion of the Actual Bonus he or she would have otherwise earned for such Year on the basis of
the actual percentage attainment of the Corporate Performance Objectives for that Year, prorated from the beginning of that particular Year to the date in which the Participant ceases Employee Status. 
  
 B. The Actual Bonus Payment to which each Participant becomes entitled under
the Plan shall be paid as follows: 
  
 (i) The
Quarterly Bonus Component (if any) shall be paid within forty-five (45) days after the close of the Fiscal Quarter for which that portion of the Actual Bonus is earned. 
  
 (ii) The Annual Bonus Component (if any) shall be paid in one payment within forty-five (45) days after the
close of the Year for which that portion of the Actual Bonus is earned. 
  
 Each payment shall be subject to the collection by the Corporation (or the Participating Subsidiary) of all applicable federal, state and local income and employment taxes, and the Participant shall only be paid the amount which remains
after the collection of those taxes. 
  

	IX.	PLAN DURATION AND AMENDMENT 

  
 The Plan shall be in effect for the 2005 Year and for each subsequent fiscal year of the Corporation until the Plan Administrator by appropriate
resolution terminates the Plan, or adopts a new Plan. No Participant shall accrue any rights to receive an Actual Bonus for a particular Fiscal Quarter or Year for which the Plan is outstanding until the Earn-Out Date for that Fiscal Quarter or
Year. Accordingly, the Plan Administrator in its sole discretion may amend or terminate the Plan at any time prior to the Earn-Out Date in effect for a particular Fiscal Quarter or Year, and any such amendment or termination shall be applicable for
that Fiscal Quarter or Year and each subsequent Fiscal Quarter in that Year. 
  

	X.	NON-TRANSFERABILITY 

  
 The right to receive an Actual Bonus under the Plan may not be transferred, assigned, pledged or encumbered. Should a Participant die before receipt of
any Actual Bonus to which he or she becomes entitled under the Plan, then that bonus shall be paid to the Participant’s estate. 
  

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	XI.	OTHER INCENTIVE PLANS 

  
 The Plan constitutes the full and entire understanding and agreement between the Corporation and each of the Participants with respect to the subject
matter hereof, and it supersedes all prior or contemporaneous agreements and understandings, whether oral or written, relating to the subject matter of the Plan. 
  

	XII.	COUNTERPARTS 

  
 This Plan and acknowledgements thereof may be executed in any number of counterparts, each of which shall be an original, but all of which together shall
constitute one instrument. 
  

	XIII.	NO EMPLOYMENT RIGHTS 

  
 Nothing in the Plan shall confer upon a Participant any right to continue in Executive or Employee Status for any period of specific duration or interfere
with or otherwise restrict in any way the rights of the Corporation or any Participating Subsidiary or of the Participant, which rights are hereby expressly reserved by each, to terminate the Executive or Employee Status of the Participant at any
time for any reason, with or without cause. 
  

	XIV.	GOVERNING LAW 

  
 The provisions of the Plan shall be governed by and construed in accordance with the laws of the State of California without resort to the
conflict-of-laws rules thereof or of any other jurisdiction. 
  

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 IN WITNESS WHEREOF, Borland Software Corporation has caused this instrument to be executed on by
its behalf by it duly-authorized officer as of the 26th day of January, 2005. 
  

					
	BORLAND SOFTWARE CORPORATION
		
	 By:
	 	 /s/ Timothy J. Stevens

	 	 	 Name:
	 	 Timothy J. Stevens

	 	 	 Title:
	 	 Senior Vice President and General
 Counsel
  

  

	
	AGREED AND ACCEPTED
	
	 ____________________________

  

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 Executive Officers 
  
 SCHEDULE I 
  
 LIST OF PARTICIPATING SUBSIDIARIES 
  
 None 

 ADDENDUM I 
  

GENERAL CRITERIA AND TERMS OF THE INCENTIVE COMPENSATION PLAN FOR 2005 
  
 The Plan Administrator has determined that the Corporate Performance Objectives will be based on 2005 quarterly and annual revenue and
earnings-per-share targets as determined by the Plan Administrator for each Participant. Target Bonuses are to be comprised of Annual and Quarterly Bonus Components, except for the Chief Executive Officer, whose entire Target Bonus is to be composed
solely of an Annual Bonus Component. The 2005 fiscal year Target Bonuses as a percentage of each named executive officer’s base salary, are indicated in the table below: 
  

			
	 Name

	  	Total Target Bonus
(as a % of base salary)

	 President & CEO
	  	100%
		
	 EVP, Chief Operating Officer
	  	70%
		
	 SVP, Chief Financial Officer
	  	50%
		
	 SVP, General Counsel
	  	50%
		
	 SVP, Worldwide Sales *
	  	100%

  
 Actual Bonuses may exceed the Target
Bonus in the event that the Company’s actual financial performance exceeds the corporate performance objectives. For the 2005 fiscal year, each Participant has an opportunity to receive up to an additional amount equal to 50% of the Target
Bonus in the event the Company exceeds the applicable Corporate Performance Objectives, except in the case of the SVP, Worldwide Sales who has an opportunity to receive up to an additional amount equal to 200% of his Target Bonus. 
  
 The information set forth above is subject to the Plan Administrator’s authority to
modify the terms of the Plan and administer the Plan in accordance with it terms, including without limitation, the right modify the Target Bonuses Personal Performance Objectives and Corporate Performance Objectives upward or downward at any time
or to grant bonuses, subject to the limitations set forth in the Plan, if the specific performance objectives are not met. The information set forth above is further subject to and shall, to the extent inconsistent, be superceded by any other
information provided by the Plan Administrator or any person authorized by the Plan Administrator to a Participant with respect to such Participant’s Target Bonus, Personal Performance Objectives, Corporate Performance Objectives or any other
term or condition of the Plan or such Participant’s participation in the Plan. 

	*	Former Executive Officer 

  

 10Form of Stock Issuance Agreement under the 2002 Stock Incentive Plan

 Exhibit 10.17 
  
 BORLAND SOFTWARE CORPORATION 
  

STOCK ISSUANCE AGREEMENT 
  
 AGREEMENT made this      day of
                    , by and between Borland Software Corporation, a Delaware corporation, and
                                        ,
a Participant in the Corporation’s 2002 Stock Incentive Plan. 
  
 All capitalized terms in this Agreement shall have the meaning assigned to them in this Agreement or in the attached Appendix. 
  

	 	A.	PURCHASE OF SHARES 

  
 1. Purchase. Participant hereby purchases              shares of Common
Stock (the “Purchased Shares”) pursuant to the provisions of the Stock Issuance Program at the purchase price of $             per share (the “Purchase Price”).

  
 2. Payment. Concurrently with the delivery of
this Agreement to the Corporation, Participant shall pay the Purchase Price for the Purchased Shares in cash or check payable to the Corporation and shall deliver a duly executed blank Assignment Separate from Certificate (in the form attached
hereto as Exhibit I) with respect to the Purchased Shares. 
  
 3.
Stockholder Rights. Until such time as the Corporation exercises the Repurchase Right, Participant (or any successor in interest) shall have all the rights of a stockholder (including voting, dividend and liquidation rights) with
respect to the Purchased Shares, subject, however, to the transfer restrictions of this Agreement. 
  
 4. Escrow. The Corporation shall have the right to hold the Purchased Shares in escrow until those shares have vested in accordance with the
Vesting Schedule. 
  
 5. Compliance with Law. Under
no circumstances shall shares of Common Stock or other assets be issued or delivered to Participant pursuant to the provisions of this Agreement unless, in the opinion of counsel for the Corporation or its successors, there shall have been
compliance with all applicable requirements of applicable securities laws, all applicable listing requirements of any stock exchange (or the Nasdaq National Market, if applicable) on which the Common Stock is at the time listed for trading and all
other requirements of law or of any regulatory bodies having jurisdiction over such issuance and delivery. 
  

	 	B.	TRANSFER RESTRICTIONS 

  
 1. Restriction on Transfer. Except for any Permitted Transfer, Participant shall not transfer, assign, encumber or otherwise dispose of any
of the Purchased Shares which are subject to the Repurchase Right. 
  

 1 

 2. Restrictive Legend. The stock certificate for the Purchased Shares shall be endorsed
with the following restrictive legend: 
  
 “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE UNVESTED AND SUBJECT TO CERTAIN REPURCHASE RIGHTS GRANTED TO THE CORPORATION AND ACCORDINGLY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED, OR IN ANY MANNER DISPOSED OF EXCEPT IN
CONFORMITY WITH THE TERMS OF A WRITTEN AGREEMENT DATED                     ,
             BETWEEN THE CORPORATION AND THE REGISTERED HOLDER OF THE SHARES (OR THE PREDECESSOR IN INTEREST TO THE SHARES). A COPY OF SUCH AGREEMENT IS MAINTAINED AT THE
CORPORATION’S PRINCIPAL CORPORATE OFFICES.” 
  
 3.
Transferee Obligations. Each person (other than the Corporation) to whom the Purchased Shares are transferred by means of a Permitted Transfer must, as a condition precedent to the validity of such transfer, acknowledge in writing to
the Corporation that such person is bound by the provisions of this Agreement and that the transferred shares are subject to the Repurchase Right to the same extent such shares would be so subject if retained by Participant. 
  

	 	C.	REPURCHASE RIGHT 

  
 1. Grant. The Corporation is hereby granted the right (the “Repurchase Right”), exercisable at any time during the ninety (90)-day
period following the date Participant ceases for any reason to remain in Service, to repurchase at the Repurchase Price any or all of the Purchased Shares in which Participant is not, at the time of his or her cessation of Service, vested in
accordance with the Vesting Schedule set forth in Paragraph C.3 of this Agreement (such shares to be hereinafter referred to as the “Unvested Shares”). 
  
 2. Exercise of the Repurchase Right. The Repurchase Right shall be exercisable by written notice delivered to
each Owner of the Unvested Shares prior to the expiration of the ninety (90)-day exercise period. The notice shall indicate the number of Unvested Shares to be repurchased, the Repurchase Price per share and the date on which the repurchase is to be
effected, such date to be not more than thirty (30) days after the date of such notice. The certificates representing the Unvested Shares to be repurchased shall be delivered to the Corporation on the closing date specified for the repurchase.
Concurrently with the receipt of such stock certificates, the Corporation shall pay to Owner, in cash or cash equivalent (including the cancellation in whole or in part of any purchase-money indebtedness), an amount equal to the Repurchase Price for
the Unvested Shares to be repurchased from Owner. 
  
 3.
Termination of the Repurchase Right. The Repurchase Right shall terminate with respect to any Unvested Shares for which it is not timely exercised under Paragraph C.2. In addition, the Repurchase Right shall terminate and cease to be
exercisable with respect to any and all Purchased Shares in which Participant vests in accordance with the following Vesting Schedule: 
  
 [Vesting schedule to be determined by the Plan Administrator.] 
  

 2 

 4. Recapitalization. Any new, substituted or additional securities or other property
(including cash paid other than as a regular cash dividend) which is by reason of any Recapitalization distributed with respect to the Purchased Shares shall be immediately subject to the Repurchase Right and any escrow requirements hereunder, but
only to the extent the Purchased Shares are at the time covered by such right or escrow requirements. Appropriate adjustments to reflect such distribution shall be made to the number and/or class of securities subject to this Agreement and to the
Repurchase Price per share to be paid upon the exercise of the Repurchase Right in order to reflect the effect of any such Recapitalization upon the Corporation’s capital structure; provided, however, that the aggregate Repurchase Price
shall remain the same. 
  
 5. Change in Control.

  
 (a) The Repurchase Right shall remain in full force and
effect following a Change in Control, and no accelerated vesting of the Purchased Shares shall occur upon the consummation of such Change in Control. The Repurchase Right shall be assigned to any successor corporation in the Change in Control
transaction and shall apply to the new capital stock or other property (including any cash payments) received in exchange for the Purchased Shares in consummation of that Change in Control, but only to the extent the Purchased Shares are at the time
covered by such right. Appropriate adjustments shall be made to the Repurchase Price per share payable upon exercise of the Repurchase Right to reflect the effect (if any) of the Change in Control upon the Corporation’s capital structure;
provided, however, that the aggregate Repurchase Price shall remain the same. The new securities or other property (including cash payments) issued or distributed with respect to the Purchased Shares in consummation of the Change in Control
shall immediately be deposited in escrow with the Corporation (or the successor entity) and shall not be released from escrow until Participant vests in such securities or other property in accordance with the same Vesting Schedule in effect for the
Purchased Shares. 
  
 (b) The Repurchase Right may terminate, and
the Purchased Shares subject to such Repurchase Right may vest, on an accelerated basis in accordance with the terms of any Special Vesting Acceleration Addendum attached to this Agreement. 
  

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	 	D.	SPECIAL TAX ELECTION 

  
 1. Section 83(b) Election. Under Code Section 83, the excess of the fair market value of the Purchased Shares on the date any forfeiture
restrictions applicable to such shares lapse over the Purchase Price paid for such shares will be reportable as ordinary income on the lapse date. For this purpose, the term “forfeiture restrictions” includes the right of the Corporation
to repurchase the Purchased Shares pursuant to the Repurchase Right. Participant may elect under Code Section 83(b) to be taxed at the time the Purchased Shares are acquired, rather than when and as such Purchased Shares cease to be subject to such
forfeiture restrictions. Such election must be filed with the Internal Revenue Service within thirty (30) days after the date of this Agreement. Even if the fair market value of the Purchased Shares on the date of this Agreement equals the Purchase
Price paid (and thus no tax is payable), the election must be made to avoid adverse tax consequences in the future. THE FORM FOR MAKING THIS ELECTION IS ATTACHED AS EXHIBIT II HERETO. PARTICIPANT UNDERSTANDS THAT FAILURE TO MAKE THIS
FILING WITHIN THE APPLICABLE THIRTY (30)-DAY PERIOD WILL RESULT IN THE RECOGNITION OF ORDINARY INCOME AS THE FORFEITURE RESTRICTIONS LAPSE. 
  
 2. FILING RESPONSIBILITY. PARTICIPANT ACKNOWLEDGES THAT IT IS PARTICIPANT’S SOLE RESPONSIBILITY, AND NOT THE CORPORATION’S, TO FILE A
TIMELY ELECTION UNDER CODE SECTION 83(b), EVEN IF PARTICIPANT REQUESTS THE CORPORATION OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HIS OR HER BEHALF. 
  

	 	E.	GENERAL PROVISIONS 

  
 1. Assignment. The Corporation may assign the Repurchase Right to any person or entity selected by the Board, including (without limitation)
one or more stockholders of the Corporation. 
  
 2.
Employment At Will . Nothing in this Agreement or in the Plan shall confer upon Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the
Corporation (or any Parent or Subsidiary employing or retaining Participant) or of Participant, which rights are hereby expressly reserved by each, to terminate Participant’s Service at any time for any reason, with or without cause.

  
 3. Notices. Any notice required to be given
under this Agreement shall be in writing and shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, registered or certified, postage prepaid and properly addressed to the party entitled to such notice at the address
indicated below such party’s signature line on this Agreement or at such other address as such party may designate by ten (10) days advance written notice under this paragraph to all other parties to this Agreement. 
  
 4. No Waiver. The failure of the Corporation in any instance to
exercise the Repurchase Right shall not constitute a waiver of any other repurchase rights that may 

  

 4 

 
subsequently arise under the provisions of this Agreement or any other agreement between the Corporation and Participant. No waiver of any breach or
condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of like or different nature. 
  
 5. Cancellation of Shares. If the Corporation shall make available, at the time and place and in the amount and form provided in this
Agreement, the consideration for the Purchased Shares to be repurchased in accordance with the provisions of this Agreement, then from and after such time, the person from whom such shares are to be repurchased shall no longer have any rights as a
holder of such shares (other than the right to receive payment of such consideration in accordance with this Agreement). Such shares shall be deemed purchased in accordance with the applicable provisions hereof, and the Corporation shall be deemed
the owner and holder of such shares, whether or not the certificates therefor have been delivered as required by this Agreement. 
  
 6. Participant Undertaking. Participant hereby agrees to take whatever additional action and execute whatever additional documents the
Corporation may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either Participant or the Purchased Shares pursuant to the provisions of this Agreement. 
  
 7. Agreement is Entire Contract. This Agreement constitutes the
entire contract between the parties hereto with regard to the subject matter hereof. This Agreement is made pursuant to the provisions of the Plan and shall in all respects be construed in conformity with the terms of the Plan. 
  
 8. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of California without regard to the conflict-of-laws rules thereof or of any other jurisdiction. 
  
 9. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together
shall constitute one and the same instrument. 
  
 10.
Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Corporation and its successors and assigns and upon Participant, Participant’s assigns and the legal representatives,
heirs and legatees of Participant’s estate, whether or not any such person shall have become a party to this Agreement and have agreed in writing to join herein and be bound by the terms hereof. 
  

 5 

 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first indicated
above. 
  

			
	BORLAND SOFTWARE CORPORATION
		
	 By:
	 	  

	 Title:
	 	  

	 Address:
	 	  

	  

	
	PARTICIPANT
	
	  

	 Signature
	 	 
		
	 Address:
	 	  

	  

  

 6 

 SPOUSAL ACKNOWLEDGMENT 
  
 The undersigned spouse of the Participant has read and hereby approves the foregoing Stock Issuance Agreement. In
consideration of the Corporation’s granting the Participant the right to acquire the Purchased Shares in accordance with the terms of such Agreement, the undersigned hereby agrees to be irrevocably bound by all the terms of such Agreement,
including (without limitation) the right of the Corporation (or its assigns) to purchase any Purchased Shares in which the Participant is not vested at the time of his or her termination of Service. 
  

			
	  

 PARTICIPANT’S SPOUSE

		
	 Address:
	 	  

	  

 EXHIBIT I 
  

ASSIGNMENT SEPARATE FROM CERTIFICATE 
  
 FOR VALUE RECEIVED
                                        
hereby sell(s), assign(s) and transfer(s) unto Borland Software Corporation (the “Corporation”),
                                        
(            ) shares of the Common Stock of the Corporation standing in his or her name on the books of the Corporation represented by Certificate No.
                 herewith and do(es) hereby irrevocably constitute and appoint
                                        
         Attorney to transfer the said stock on the books of the Corporation with full power of substitution in the premises. 
  
 Dated:                     ,
        . 
  

			
	 Signature
	 	  

  
 Instruction: Please do
not fill in any blanks other than the signature line. Please sign exactly as you would like your name to appear on the issued stock certificate. The purpose of this assignment is to enable the Corporation to exercise the Repurchase Right without
requiring additional signatures on the part of Participant. 

 EXHIBIT II 
  

SECTION 83(b) TAX ELECTION 
  
 This statement is being made under Section 83(b) of the Internal Revenue Code, pursuant to Treas. Reg. Section 1.83-2. 
  

	(1)	The taxpayer who performed the services is: 

  
 Name: 
 Address: 
 Taxpayer Ident. No.: 
  

	(2)	The property with respect to which the election is being made is
                     shares of the common stock of Borland Software Corporation. 

  

	(3)	The property was issued on
                                        ,
            . 

  

	(4)	The taxable year in which the election is being made is the calendar year             . 

 

	(5)	The property is subject to a repurchase right pursuant to which the issuer has the right to acquire the property at the lower of the purchase price paid per share or
the fair market value per share, if for any reason taxpayer’s service with the issuer terminates. The issuer’s repurchase right will lapse in a series of annual and monthly installments over a forty-eight (48)-month period ending on
                                ,
            . 

  

	(6)	The fair market value at the time of transfer (determined without regard to any restriction other than a restriction which by its terms will never lapse) is
$             per share. 

  

	(7)	The amount paid for such property is $                 per share. 

  

	(8)	A copy of this statement was furnished to Borland Software Corporation for whom taxpayer rendered the services underlying the transfer of property. 

  

	(9)	This statement is executed on
                                        ,
            . 

  

			
	  

 Spouse (if any)
	 	  

 Taxpayer

  
 This election must be filed with
the Internal Revenue Service Center with which taxpayer files his or her Federal income tax returns and must be made within thirty (30) days after the execution date of the Stock Issuance Agreement. This filing should be made by registered or
certified mail, return receipt requested. Participant must retain two (2) copies of the completed form for filing with his or her Federal and state tax returns for the current tax year and an additional copy for his or her records. 

 APPENDIX 
  
 The following definitions shall be in effect under the Agreement: 
  
 A. Agreement shall mean this Stock Issuance Agreement.

  
 B. Board shall mean the Corporation’s Board
of Directors. 
  
 C. Change in Control shall mean a
change in ownership or control of the Corporation effected through any of the following transactions: 
  
 (i) there is consummated a merger, consolidation or other reorganization, unless securities representing more than fifty percent (50%) of
the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the
Corporation’s outstanding voting securities immediately prior to such transaction, or 
  
 (ii) the sale, transfer or other disposition of all or substantially all of the Corporation’s assets in complete liquidation or
dissolution of the Corporation other than a sale or disposition by the Corporation of all or substantially all of the Corporation’s assets to an entity, at least fifty percent (50%) of the combined voting power of the voting securities of which
are owned by stockholders of the Corporation in substantially the same proportions as their ownership of the Corporation immediately prior to such sale, or 
  
 (iii) the acquisition, directly or indirectly, by any person or related group of persons (other than the Corporation or a person that
directly or indirectly controls, is controlled by, or is under common control with, the Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than thirty percent (30%) of the total
combined voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s stockholders. 
  
 Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred by virtue of the
consummation of any transaction or series of integrated transactions immediately following which the record holders of the Common Stock immediately prior to such transaction or series of transactions continue to have substantially the same
proportionate ownership in an entity which owns all or substantially all of the assets of the Corporation immediately following such transaction or series of transactions. 
  
 D. Code shall mean the Internal Revenue Code of 1986, as amended. 
  
 E. Common Stock shall mean shares of the Corporation’s
common stock. 
  

 A-1 

 F. Corporation shall mean Borland Software Corporation, a Delaware corporation, and any
successor corporation to all or substantially all of the assets or voting stock of Borland Software Corporation. 
  
 G. Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

  
 (i) If the Common Stock is at the time traded
on the Nasdaq National Market, then the Fair Market Value shall be deemed equal to the last sale price per share of Common Stock on the date in question, as the price is reported by the National Association of Securities Dealers on the Nasdaq
National Market and published in The Wall Street Journal. If there is no reported sale of the Common Stock on the date in question, then the Fair Market Value shall be the last sale price on the last preceding date for which such quotation
exists, or 
  
 (ii) If the Common Stock is at the
time listed on any Stock Exchange, then the Fair Market Value shall be deemed equal to the last sale price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the
Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange and published in The Wall Street Journal. If there is no reported sale of the Common Stock on the date in question, then the Fair Market
Value shall be the last sale price on the last preceding date for which such quotation exists. 
  
 H. Owner shall mean Participant and all subsequent holders of the Purchased Shares who derive their chain of ownership through a Permitted Transfer from Participant. 
  
 I. Parent shall mean any corporation (other than the
Corporation) in an unbroken chain of corporations ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 J. Participant shall mean the person to whom the Purchased Shares are issued under the Stock Issuance Program. 
  
 K. Permitted Transfer shall mean (i) a gratuitous transfer of
the Purchased Shares, provided and only if Participant obtains the Corporation’s prior written consent to such transfer, (ii) a transfer of title to the Purchased Shares effected pursuant to Participant’s will or the laws of
inheritance following Participant’s death or (iii) a transfer to the Corporation in pledge as security for any purchase-money indebtedness incurred by Participant in connection with the acquisition of the Purchased Shares. 
  
 L. Plan shall mean the Corporation’s 2002 Stock Incentive
Plan. 
  

 A-2 

 M. Plan Administrator shall mean the Board, a committee of the Board or a committee of the
Corporation’s executive officers acting in its administrative capacity under the Plan. 
  
 N. Purchase Price shall have the meaning assigned to such term in Paragraph A.1. 
  
 O. Purchased Shares shall have the meaning assigned to such term in Paragraph A.1. 
  
 P. Recapitalization shall mean any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change affecting the Corporation’s outstanding Common Stock as a class without the Corporation’s receipt of consideration. 
  
 Q. Repurchase Price shall mean the lower of (i)
the Purchase Price paid per share or (ii) the Fair Market Value per share of Common Stock on the date of the Participant’s cessation of Service. 
  
 R. Repurchase Right shall mean the right granted to the Corporation in accordance with Article C. 
  
 S. Service shall mean the Participant’s performance of
services for the Corporation (or any Parent or Subsidiary) in the capacity of an employee, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance, a non-employee
member of the board of directors or an independent consultant. Service shall not be deemed to cease during a period of military leave, sick leave or other personal leave approved by the Corporation; provided, however, that except to the
extent otherwise required by law, no Service credit shall be given for purposes of the Vesting Schedule hereunder for any period the Participant is on a leave of absence. 
  
 T. Stock Issuance Program shall mean the Stock Issuance Program under the Plan. 
  
 U. Subsidiary shall mean any corporation (other than the
Corporation) in an unbroken chain of corporations beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 V. Vesting Schedule shall mean the vesting schedule specified in Paragraph C.3, pursuant to which the Purchased Shares are to vest in a
series of installments over Participant’s period of Service. 
  
 W. Unvested Shares shall have the meaning assigned to such term in Paragraph C.1. 
  

 A-3

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