PROGRESS SOFTWARE CORP /MA
EX-10.1 LETTER AGREEMENT DATED NOVEMBER 15, 2005
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<DESCRIPTION>EX-10.1 LETTER AGREEMENT DATED NOVEMBER 15, 2005
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">November&nbsp;15, 2005

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Joseph W. Alsop<BR>
c/o Progress Software Corporation<BR>
14 Oak Park<BR>
Bedford, Massachusetts 01730

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Joe:

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee of the Board of Directors of Progress Software Corporation wishes
to thank you for your contributions to the continued success of Progress. The Compensation
Committee has determined that, in recognition of your achievements and your expected contributions
to the future performance of Progress, you should be rewarded with a non-qualified stock option to
purchase 120,000 shares of Progress common stock.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee has also determined that, at present, there is an insufficient
number of shares available for grant under Progress&#146; shareholder-approved plans to permit the
Compensation Committee both to make the foregoing grant to you and to retain enough shares under
those plans to meet the Compensation Committee&#146;s other objectives. Nasdaq rules prohibit the
Compensation Committee from authorizing any stock option grant to you except pursuant to a
shareholder-approved plan or otherwise with the approval of our shareholders.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly, the Compensation Committee has decided that it should defer the award of this
stock option until our shareholders have approved an increase in the number of shares available for
grant under our existing stock plans or a new plan that is large enough to enable the Compensation
Committee to make the foregoing grant and meet its other objectives. The Compensation Committee
intends to recommend that Progress seek shareholder approval of such an increase at a future annual
meeting of shareholders. Promptly after the Compensation Committee determines that a sufficient
number of shares are available, the Compensation Committee will authorize the grant of this stock
option to you (provided that you remain employed by Progress). The grant of the stock option will
also be subject to the satisfaction of any additional legal obligations Progress may have at that
time, but otherwise the commitment made in this letter is intended to be legally binding on
Progress.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The stock option will have an exercise price equal to the fair market value of the Progress
common stock on the date of grant. The stock option will vest as if it had been granted on
November&nbsp;15, 2005. In other words, the stock option will be immediately vested and exercisable
with respect to at least 9/60ths of the option, and the balance of the option will vest and be
exercisable in equal monthly increments ending on the last vest date of the options granted to
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">employees on November&nbsp;15, 2005 without deferral arrangements. The stock option will have such
other terms and conditions as the Compensation Committee may determine at the time of grant.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of any stock split, stock dividend or similar adjustment in the Progress common
stock before the date of grant, the Compensation Committee will make an appropriate adjustment to
reflect that event.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each member of the Compensation Committee thanks you for your service to Progress and regrets
that Progress is unable to reward you appropriately at this time.
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    <TD align="left" valign="top">/s/ Roger J. Heinen</TD>
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    <TD align="left" valign="top">/s/ Scott A. McGregor</TD>
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