PROGRESS SOFTWARE CORP /MA
EX-10.5 FORM OF DEFERRED STOCK UNIT AGREEMENT
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<DESCRIPTION>EX-10.5 FORM OF DEFERRED STOCK UNIT AGREEMENT
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.5</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">DEFERRED STOCK UNIT AGREEMENT<BR>
UNDER THE PROGRESS SOFTWARE CORPORATION<BR>
2008 STOCK OPTION AND INCENTIVE PLAN
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Name of Grantee: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
No. of Deferred Stock Units Granted: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Grant Date: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Progress Software Corporation 2008 Stock Option and Incentive Plan (the
&#147;Plan&#148;) as amended through the date hereof, Progress Software Corporation (the &#147;Company&#148;) hereby
grants a deferred stock award consisting of the number of Deferred Stock Units listed above (an
&#147;Award&#148;) to the Grantee named above. Each &#147;Deferred Stock Unit&#148; shall relate to one share of
common stock, par value $.01 per share, of the Company (the &#147;Stock&#148;), subject to the conditions set
forth herein and in the Plan.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <U>Vesting of Deferred Stock Units</U>. The Deferred Stock Units shall be fully vested
and non-forfeitable on the Grant Date.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <U>Dividend Equivalents</U>.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If on any date the Company shall pay any cash dividend on shares of Stock, the number of
Deferred Stock Units credited to the Grantee shall, as of such date, be increased by an amount
determined by the following formula:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W = (X multiplied by Y) divided by Z, where:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W = the number of additional Deferred Stock Units to be credited to the Grantee on
such dividend payment date;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X = the aggregate number of Deferred Stock Units credited to the Grantee as of the
record date of the dividend;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Y = the cash dividend per share amount; and
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Z = the Fair Market Value per share of Stock (as determined under the Plan) on the
dividend payment date.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In the case of a dividend paid on Stock in the form of shares of Stock, including without
limitation a distribution of shares of Stock by reason of a stock dividend, stock split or
otherwise, the number of Deferred Stock Units credited to the Grantee shall be increased by a
number equal to the product of (i)&nbsp;the aggregate number of Deferred Stock Units that have been
awarded to the Grantee through the related dividend record date, and (ii)&nbsp;the number of shares of
Stock (including any fraction thereof) payable as dividend on one share of Stock. In the case of a
dividend payable in property other than shares of Stock or cash, the per share of Stock value of
such dividend shall be determined in good faith by the Board of Directors of the Company and shall
be converted to additional Deferred Stock Units based on the formula in (a)&nbsp;above.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <U>Issuance of Shares of Stock</U>.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;As soon as practicable after the date the Grantee ceases to provide services to the
Company as a director, the Company shall issue to the Grantee the number of full shares of Stock
equal to the aggregate number of Deferred Stock Units credited to the Grantee in full satisfaction
of such Deferred Stock Units. Any fractional Deferred Stock Unit shall be paid out in cash.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Upon a Sale Event that constitutes a &#147;Change in Control Event&#148; as defined in guidance
issued by the Internal Revenue Service pursuant to Section&nbsp;409A of the Internal Revenue Code of
1986, as
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">amended, the Company shall issue to the Grantee the number of shares of Stock equal to the
aggregate number of Deferred Stock Units credited to the Grantee on such date (determined after
giving effect to Section&nbsp;3 above) in full satisfaction of such Deferred Stock Units; provided,
however, that in the event the Company is involved in a transaction in which shares of Stock will
be exchanged for cash or other consideration, the Grantee shall receive cash or other consideration
equal in value to the aggregate number of Deferred Stock Units credited to the Grantee on the date
of a Sale Event (determined after giving effect to Section&nbsp;2 above).
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Immediately after the issuance of shares of Stock or cash pursuant to this Section&nbsp;3, this
Agreement shall terminate and be of no further force or effect.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <U>Incorporation of Plan</U>. Notwithstanding anything herein to the contrary, this
Agreement shall be subject to and governed by all the terms and conditions of the Plan, including
the powers of the Administrator set forth in Section 2(b) of the Plan. Capitalized terms in this
Agreement shall have the meaning specified in the Plan, unless a different meaning is specified
herein.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <U>Transferability of this Agreement</U>. This Agreement is personal to the Grantee, is
non-assignable and is not transferable in any manner, by operation of law or otherwise, other than
by will or the laws of descent and distribution.
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    <TD colspan="3" valign="top" align="left">PROGRESS SOFTWARE CORPORATION</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed
to by the undersigned.
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated:</DIV></TD>
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Grantee&#146;s Signature
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