Document:

exv10w1

Exhibit 10.1

[Letterhead of Progress Software Corporation]

October 15, 2010

Charles Wagner

7 Richard Road

Medfield, MA 02502

Dear Charlie:

I am pleased to extend a written offer of employment to you to join Progress Software Corporation
as Executive Vice President, Finance & Administration and Chief Financial Officer, reporting to
Richard Reidy, President and Chief Executive Officer, with an expected commencement date of
November 15, 2010.

	1.	 	Cash Compensation. Your total target compensation will be $650,000.00 annually. This will
be made up of (1) a base salary at an annualized rate of $400,000.00, paid bi-weekly, before
taxes and other deductions, and (2) participation in our Executive and Key Contributor Bonus
program at an aggregate target annual rate of $250,000.00, pro-rated from your start date to
the end of the Progress Software fiscal year (November 30th).
	 
	 	 	In addition, you will be eligible for a review of your total target compensation for FY11 as
part of the annual review process applicable to Progress Software executives.
	 
	2.	 	Equity Compensation. Prior to your commencement date, we will recommend to, and seek the
approval of, the Compensation Committee of the Board of Directors of Progress Software that
you be awarded a new hire equity grant of 200,000 option equivalent shares consisting of
120,000 stock options and 32,000 restricted stock units (with each RSU valued as 2.5 options).
Restricted stock units are a form of equity compensation in which Progress Software agrees to
issue unrestricted shares of common stock in the future upon vesting of the units.
	 
	 	 	Your entire new hire equity grant will be approved at a meeting of the Compensation Committee
to occur on or before your commencement date, with the issuance and pricing to be effective on
your commencement date. The exercise price of the option grants will be the fair market value
of Progress Software common stock on the date of grant. Options vest monthly over five years
beginning six months after date of hire. Restricted stock units vest semi-annually over three
years and convert to shares of Progress Software common stock upon vesting. In your case, the
first vesting of restricted stock units will occur on April 1, 2011.
	 
	 	 	In addition, you will be eligible to participate in Progress Software’s annual equity
compensation program for FY11 on a basis consistent with other Progress Software executives.

 

 

Charles Wagner

October 15, 2010

Page 2 of 3

	3.	 	Benefits. As an employee of Progress Software, you will be eligible to participate in our
employee benefit plans, which includes Medical Insurance, Dental Insurance, Vision Insurance,
Life Insurance, Long and Short Term Disability, a 401(k) plan, Employee Stock Purchase Plan,
paid vacations and holidays.
	 
	 	 	Enclosed you will find a CD, which will provide you with an overview of the employee benefits
provided by Progress Software. You will learn more about your employee benefits when you attend
the Benefits Orientation. Upon arrival to Progress Software, you will be notified of the date
and time of your orientation.
	 
	4.	 	Severance. In the event that your employment is terminated by Progress Software other than
for “cause” (as defined below), you shall be eligible to severance pursuant to the severance
plan then applicable to members of Progress Software’s Executive Committee as a result of an
involuntary termination of employment; provided, that, you shall be entitled to severance pay
and benefits at least equal to the severance pay and benefits provided under the severance
plan applicable to members of Progress Software’s Executive Committee as of the date of this
letter. As of the date of this letter, such severance plan provides for (a) the payment of
severance of twelve (12) months of your total target cash compensation as of the date of
termination, (b) the continuation, for a period of twelve (12) months, of benefits that are
substantially equivalent to the benefits (medical, dental, vision and life insurance) that
were in effect immediately prior to your termination, and (c) twelve (12) months of
acceleration of unvested stock options and restricted stock units. The cash severance shall
be paid in accordance with our normal payroll practices and procedures and subject to all
applicable deductions and withholdings. This severance will be paid as salary continuation
for such twelve month period. Your receipt of this severance and benefits is subject to the
execution by you of our standard form of separation and release agreement, which will include
a non-competition clause; provided, however, that such non-competition clause will be for a
term equal to the severance period.
	 
	 	 	For purposes of the preceding paragraph, “cause” means conduct involving any of the following:
(i) substantial and continuing violations by you of your obligations as an employee of Progress
Software after there has been delivered to you a written demand for performance from Progress
Software which describes the basis for Progress Software’s belief that you have not
substantially performed your duties, (ii) your material violation of Progress Software’s
employment policies, (iii) your material breach of any agreement between you and Progress
Software, or (iv) your disloyalty, gross negligence, willful misconduct, dishonesty, fraud or
breach of fiduciary duty to Progress Software.
	 
	5.	 	Change in Control. Prior to your commencement date, we will seek the approval of the Board
of Directors of Progress Software to your receiving an Employee Retention and Motivation
Agreement (ERMA), which provides compensation in the event of a change in control of Progress
Software, on terms consistent with other Progress Software executives.
Attached is a description of the current terms of the ERMA. The compensation payable to
you under the ERMA in the event of a termination of employment following a change in control
will be in lieu of the severance described in Paragraph 4 above.

 

 

Charles Wagner

October 15, 2010

Page 3 of 3

Please review the “Employee Proprietary Information and Confidentiality Agreement”, and the
“Code of Conduct Agreement” (located on the enclosed CD). You are required to sign and return
both documents prior to your start date.

While we look forward to a long and mutually beneficial relationship, you should understand that,
except as otherwise provided in this letter, you are not being offered employment for a definite
period of time, as the employment relationship with Progress Software is considered “at will”,
meaning that you or Progress Software may terminate the employment relationship at any time, with
or without notice.

By accepting this offer of employment, you certify that any and all information that you have
provided in connection with any employment application to Progress, including information on your
resume and information provided during the interview process, is true and accurate in all material
respects. You acknowledge that we have relied upon this information and agree that any omission or
false statement by you as part of your application or during the interview process may result in
the immediate termination of your employment without the requirement that we pay you any of the
severance or benefits described in Paragraph 6 above.

This offer of employment is contingent upon a successful completion of references and a background
check. Upon your acceptance of this offer, HireRight, our background verification vendor, will
email you with instructions on how to initiate this process.

To confirm your acceptance of this offer, please fax the signed offer acceptance to our secure
e-fax number, Offer Acceptance (781) 998-2699, no later than three business days from receipt of
this offer.

I am looking forward to having you join us and am confident that you will find this position to be
a challenging and rewarding one for you.

Sincerely,

/s/
Richard D. Reidy

Richard D. Reidy

President and Chief Executive Officer

Acceptance: 

	 	 	 	 	 

	Employee Signature:  

	 	/s/ Charles F. Wagner, Jr.
	 	 
	 

	 	 	 	 
	 

	 	Date: October 15, 2010	 	 
	 

	 	Start Date: November 15, 2010	 	 

Enclosures/Attachments:

	1.	 	CD/Employee Benefits
	 
	2.	 	Description of ERMA
	 
	3.	 	Employee Proprietary Information and Confidentiality Agreement and Code of Conduct Agreement
(see CD)exv10w3

Exhibit 10.3

November 12, 2010

Norman R. Robertson

179 Main Street

Groton, MA 01450

Dear Bud:

The purpose of this letter is to confirm that your employment with Progress Software Corporation
(“Progress” or the “Company”) will terminate on May 13, 2011 (the “Termination Date”). As
discussed with you, the Company would like you to continue in your current role as Senior Vice
President, Finance & Administration and Chief Financial Officer on a full-time basis until November
15, 2010, which is the date on which the new Chief Financial Officer is expected to commence
employment. Furthermore, even after such date, the Company would like you to assist in the
completion of certain tasks, projects or other business transition items during the period
commencing on November 15, 2010 (the “Transition Commencement Date”) and ending on the Termination
Date (the “Transition Period”).

1. Transition Period Arrangements

On the Transition Commencement Date, the following terms will apply to your employment with the
Company—

	(a)	 	You will remain employed with the Company until the Termination Date.
	 
	(b)	 	Your title will be Senior Advisor, Finance and Administration and you will continue to report
to me. In this position, you will not be an officer of the Company.
	 
	(c)	 	Until December 31, 2010, you will be employed with the Company on a full-time basis. Your
base salary and benefits will remain unchanged during such period and you will continue to
accrue vacation and floating holiday time as a full-time employee pursuant to the terms of the
Company’s Vacation and Holidays Policy.
	 
	(d)	 	You will receive your bonus for the first half of the fiscal year ended November 30, 2010
(i.e., for the period from December 1, 2009 until May 31, 2010) pursuant to the Company’s
Executive and Key Contributor Bonus Program when such bonuses are paid in January/February
2011.
	 
	(e)	 	You will remain eligible to receive your bonus for the second half of the fiscal year ended
November 30, 2010 pursuant to the Company’s Executive and Key Contributor Bonus Program, such
payment, if any, to be made in accordance with the terms of, and at the time provided in, the
Program.
	 
	(f)	 	From January 1, 2011 until the Termination Date (the “Part-Time Transition Period”), you will
be employed with the Company on a part-time basis. The

 

 

	 	 	Company will expect you to commit a minimum of one full day per week performing your job
duties. During the Part-Time Transition Period, your annualized base salary will be
$64,000.00, to be paid pursuant to PSC’s standard payroll practices, policies and
procedures. During the Part-Time Transition Period, you will play an important role in
assisting our new Chief Financial Officer in critical functions of his position, including
preparation of financial statements, internal financial and accounting information and
analysis, preparation for year-end and quarterly conference calls with investors,
preparation of SEC filings, preparation of earnings releases and related matters.
	 
	(g)	 	During the Part-Time Transition Period, you will accrue vacation and floating holiday time on
a pro-rata basis, per the Company’s Vacation and Holidays Policy. You will retain all of your
currently accrued vacation and floating holiday time.
	 
	(h)	 	During the Part-Time Transition Period, your continued participation in the Company’s benefit
plans will be determined by the specific terms of such plans. For example, you (and your
former spouses) will no longer be eligible to continue to participate in the Company’s benefit
plans providing medical and dental coverage. Instead, you (and your former spouses) will be
eligible to continue medical and dental coverage by electing COBRA and the Company will pay
the COBRA premiums (less the amount you would have otherwise been required to contribute if
you (and your former spouses) had continued on the Company’s medical and dental plans as an
employee with your current coverage elections). A separate package detailing COBRA will be
mailed to your home shortly after January 1, 2011. It is important to highlight that, as
described in the attached Benefits Information Attachment, you must complete the COBRA
application you will receive from Aetna to continue your medical and dental coverage beyond
your Termination Date. Cindy Swech and Kristen Jadul will work with you to complete the
necessary paperwork to elect COBRA.
	 
	(i)	 	During the Transition Period, your unvested stock options and restricted stock units will
continue to vest in accordance with the terms and conditions of such stock options and
restricted stock units.
	 
	(j)	 	Although you will cease to be an officer of the Company on November 15, 2010, your
involvement in critical accounting and financial matters (as described in paragraph 1(f)
above) means that, during the Transition Period, you will continue to be subject to the
trading blackouts and pre-clearance requirements of the Company’s Insider Trading Policy
applicable to Directors and Officers.

2. Employment Termination Benefits

Upon the Termination Date, you will be entitled to the following, subject to the terms and
conditions of this letter:

	(a)	 	Salary: The Company will issue a payment to you on the Termination Date equal to the
total amount of your outstanding wages and unused vacation and floating holidays accrued
through such date, less applicable deductions and withholdings, in accordance with the
Company’s regular payroll practices.

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	(b)	 	Medical and Dental Benefits: If you elected COBRA as described in paragraph 1(h)
above in connection with the commencement of the Part-Time Transition Period, the provision of
your (and your former spouses) medical and dental coverage through COBRA will continue
following the Termination Date, subject to paragraph 3(b) below).
	 
	(c)	 	Outplacement. You will be entitled to outplacement services, at the Company’s
expense, as further described in the Keystone materials to be provided you on the Termination
Date. The Keystone program for which you qualify is entitled “Career Transition.”
	 
	(d)	 	Expense Reimbursement: The Company will reimburse you for all actual reasonable and
customary business expenses incurred by you (in the furtherance of Company business) on or
prior to the Termination Date in accordance with the Company’s regular expense reimbursement
policies. In order to qualify for reimbursement, reimbursement requests for all such expenses
must be submitted by June 1, 2011.
	 
	(e)	 	Laptop and Blackberry. After the Termination Date, you will be entitled to keep the
Company issued laptop (the “Laptop”) and blackberry (the “Blackberry”) for your personal use.
Prior to the Termination Date, the Company will be permitted to remove from the Laptop and the
Blackberry any and all materials, messages and other information that the Company reasonably
and in good faith determines relate to the business of the Company as well as any software
licensed or owned by the Company and you will cooperate with the Company with respect to such
removal. Following such removal, the Company shall transfer ownership of the Laptop and the
Blackberry to you.
	 
	(f)	 	Mobile Phone. After the Termination Date, you will be entitled to keep the Company
issued mobile phone (the “Phone”) for your personal use. During the thirty (30) day period
after the Termination Date, the Company will continue to pay the bills, invoices and other
charges relating to the Phone for such period. However, within thirty (30) days after the
Termination Date, you must either (a) cancel the account associated with the Phone (the “Phone
Account”), or (b) transfer the Phone Account to a personal account (i.e., you may retain the
phone number for personal use) such that the Company no longer has any responsibility for, or
connection with, any bills, invoices or other charges in connection with the Phone or the
Phone Account. If you do not accomplish either (a) or (b) above within thirty (30) days after
the Termination Date, the Company will cancel the Phone Account.
	 
	(g)	 	Other Benefits: Except as otherwise expressly stated in this letter or the enclosed
Benefits Information Attachment, all of your benefits as an employee of the Company will
terminate as of the Termination Date. You will be provided with more detailed information
concerning your conversion options with respect to certain benefits under separate cover.

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3. Severance Benefits

In addition to the benefits provided in Paragraph 2 of this letter, provided that you execute the
Separation Agreement and Release in the form attached hereto as Exhibit A (the
“SAR”), and return it to me by May 20, 2011, then, in consideration for such execution and the
rights and obligations included in the SAR, the Company will provide the following additional
payments and benefits:

	(a)	 	Salary Continuation. For a period of eighteen (18) months after the Termination Date
(the “Severance Period”), the Company will continue to pay your Target Compensation in
accordance with the Company’s normal payroll practices and procedures and subject to all
applicable deductions and withholdings. Such severance shall be paid bi-weekly in the amount
of $21,923.08, before taxes and other deductions. Such payment shall commence on the first
payroll date after the Termination Date. Solely for purposes of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), each installment payment is considered a
separate payment. For purposes of your severance, the term “Target Compensation” shall mean
the total of all fixed (which for this purpose shall mean $320,000) and variable (which for
this purpose shall mean $250,000) cash compensation due based upon one hundred percent (100%)
attainment of performance levels.
	 
	(b)	 	Medical and Dental Benefits before July 1, 2012. If you elected COBRA coverage, the
Company will pay the COBRA premiums (less the amount you would have otherwise been required to
contribute for your (and your former spouses) health benefits if you (and your former spouses)
had continued on the Company’s medical and dental plans with your current coverage elections
(the “Employee COBRA Payment”) until the earlier of (i) July 1, 2012, or (ii) the date when
you become eligible for substantially equivalent health insurance coverage in connection with
new employment or self-employment (the “COBRA Premium Payment Period”). Although your
eligibility for COBRA (as described in the Benefits Information Attachment) is not contingent
on your execution of the SAR, the Company’s obligation to pay the COBRA premiums in accordance
with this paragraph is contingent upon your execution of the SAR. Note that all cost
allocations and calculations required by this paragraph will be made in accordance with the
American Recovery and Reinvestment Act of 2009.
	 
	(c)	 	Medical and Dental Benefits after July 1, 2012. After July 1, 2012, you (and your
former spouses) will no longer be eligible (under Federal law) for COBRA coverage. From and
after July 1, 2012 until November 12, 2012 (i.e., the date that is eighteen months after your
Termination Date), provided that you are not eligible for substantially equivalent health
insurance coverage in connection with new employment or self-employment on or prior to that
date, the Company will reimburse you for the cost of health insurance coverage you obtain (for
yourself and your former spouses) during such period in an amount equal to the percentage of
COBRA Premiums paid by the Company during the COBRA Premium Payment Period.

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	(d)	 	FY11 Bonus. You will remain eligible to receive a pro-rata portion (based on the
number of days employed with the Company during FY11) of your bonus for the fiscal year ended
November 30, 2011 pursuant to the Company’s Executive and Key Contributor Bonus Program (the
“FY11 Program”), such payment, if any, to be prorated between full-time employment and
part-time employment, and otherwise made in accordance with the terms of, and at the time
provided in, the FY11 Program.
	 
	(e)	 	Stock Options. All unvested stock options held by you which were granted prior to
the Termination Date under the Company’s stock option plans which would otherwise vest and
become fully exercisable during the one year period following the Termination Date shall
instead accelerate and become fully exercisable as of the Termination Date. The vesting of
all other outstanding stock options shall cease immediately as of the Termination Date.
Unvested options will be cancelled on the Termination Date. Vested options must be exercised
on or before February 13, 2012. Vested but unexercised options will be cancelled on February
13, 2012.
	 
	(f)	 	Restricted Stock Units. All shares of restricted equity held by you which were
granted prior to the Termination Date under the Company’s stock option plans which would
otherwise become nonforfeitable and not subject to any restrictions during the one year period
following the Termination Date shall instead become nonforfeitable and not subject to any
restrictions as of the Termination Date.

4. Employee Retention and Motivation Agreement

You are a party to an Employee Retention and Motivation Agreement (the “ERMA”), which provides
severance and other benefits to you in the event of a Change in Control (as defined in the ERMA) of
the Company. In the event that a Change in Control of the Company occurs on or prior to May 13,
2011, the ERMA shall be applicable to your termination of employment on the Termination Date and
any and all post-termination severance benefits to be paid to you upon such termination of
employment shall be governed by the terms and conditions of the ERMA and not by Paragraph 3 of this
letter; provided, however, that Paragraph 2 of this letter shall continue to apply
to your termination of employment and, subject to your execution of the SAR, the following
additional terms shall apply:

	(a)	 	The number of months of severance provided pursuant to Section 3(a)(i) of the ERMA shall be
increased by three (3) months, so that the total number of months of severance is eighteen
(18) months, with such additional three months of severance being paid in accordance with the
Company’s normal payroll practices and procedures and subject to all applicable deductions and
withholdings. Such payment shall commence on the first payroll date after the Termination
Date.
	 
	(b)	 	The number of months of benefits (medical, dental, vision and life insurance) provided
pursuant to Section 3(a)(i) of the ERMA shall be increased by three (3) months, so that the
total number of months of benefits is eighteen (18) months.
	 
	(c)	 	If the outstanding stock options and shares of restricted equity held by you under the
Company’s stock option plans on the date of the Change of Control are

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	 	 	continued by the Company or assumed by its successor entity, then the acceleration
provisions of subparagraphs (e) and (f) of Paragraph 3 shall apply.
	 
	(d)	 	You will have the right to exercise vested options until February 13, 2012. Vested but
unexercised options will be cancelled on February 13, 2012.

For clarification purposes, to the extent that a Change in Control of the Company does not occur on
or prior to May 13, 2011, then the ERMA shall not apply to your termination of employment on the
Termination Date.

Except as described above, nothing in this new employment arrangement shall serve to modify — and
you shall still be bound by — the terms of the Employee Proprietary Information and
Confidentiality Agreement between you and the Company, dated December 30, 2002 (the “EPICA”).

The terms set forth in this letter, the SAR, the enclosed Benefits Information Attachment and the
ERMA, to the extent applicable, represent the entire consideration being offered to you in
connection with the termination of your employment with the Company.

Please acknowledge your acceptance of these terms by signing in the space below.

Sincerely,

	 	 	 	 	 
	/s/ Richard D. Reidy
 	 	 
	Richard D. Reidy 	 	 

ACKNOWLEDGED AND AGREED TO:

	 	 	 

	/s/ Norman R. Robertson

	 	November 12, 2010
	 

Norman R. Robertson

	 	 Date

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