PROGRESS SOFTWARE CORP /MA
EX-10.12 PROGRESS SOFTWARE CORPORATION 2008 FISCAL YEAR DIRECTOR COMPENSATION PR
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<TYPE>EX-10.12
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<FILENAME>b73802psexv10w12.htm
<DESCRIPTION>EX-10.12 PROGRESS SOFTWARE CORPORATION 2008 FISCAL YEAR DIRECTOR COMPENSATION PROGRAM, AS AMENDED
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.12
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROGRESS SOFTWARE CORPORATION<BR>
2008 FISCAL YEAR DIRECTOR COMPENSATION PROGRAM</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>(Reflecting amendments thru December&nbsp;16, 2008)</B>
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    <TD width="1%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Amounts of 2008 Fiscal Year Compensation</U></TD>
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    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>&#149;</B> Annual Board Retainer:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$275,000</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>&#149;</B> Audit Committee:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$25,000 for Chair<br></TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="white-space: nowrap">$20,000 for Members</FONT></TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>&#149;</B> Nomination and Governance Committee:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$10,000 for Chair<br></TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$7,500 for Members</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>&#149;</B> Compensation Committee:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$15,000 for Chair<br></TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$12,500 for Members</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>&#149;</B> Special Litigation Committee:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$50,000 for Chair<br></TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(while in use)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$45,000 for Members</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>&#149;</B> Strategic Planning Committee<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$25,000 for Chair<br></TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$20,000 for Members</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>&#149;</B> Board Chairman:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$25,000</TD>
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    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="79%">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><u>Form of Payment</u>:
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">25% in cash <BR>
75% in equity (35% in fully vested deferred stock units and <BR>
40% in fully vested options), except that the option portion of the last
payment to a director whose directorship terminates for any reason
at the end of, or during, a term shall be paid entirely in
deferred stock units.</TD>
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    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="95%">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><U>Equity</U>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The number of option shares is determined by dividing the compensation
amount by the grant date Black Scholes value. The number of deferred stock units is
determined by dividing the compensation amount by the grant date closing price of the
Corporation&#146;s common stock.</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><U>Timing</U>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Annual fiscal year compensation will be paid in two installments,
coincident with the April and October dates of the broad-based employee equity grants.
The April payment is for service from December 1 through May&nbsp;31, and the October
payment is for service from June 1 through November&nbsp;30. Amounts paid will be
pro-rated for partial year service, with a fractional month of service rounded to a
whole month. Accordingly, if a director resigns from the Board, is</TD>
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    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Amended December&nbsp;2008</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">removed from the Board by a vote, is removed from the Board due to a change in
control, or dies in office, he or she is paid a pro-rated amount for service
through date of termination of service. Similarly a director who joins the
Board other than on the first day of the fiscal year will be paid a pro-rated
amount of the annual fiscal year compensation. The same proration rule will
also apply to any partial year service on any committee.</TD>
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    <TD width="1%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Initial Director Option Grant</U></TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each newly elected Director shall receive an option to acquire 25,000 shares of the
Corporation&#146;s common stock at the first April or October grant date following his or her
election to the Board. The vesting is over a 60-month period and begins on the first day
of the month following the month the Director joins the Board, with full acceleration upon
a change in control. The terms of the option shall be similar to terms of employee options.</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD width="1%" nowrap align="left">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Stock Retention Guidelines</U></TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All non-employee Directors must hold 10,000 shares of the Corporation&#146;s common stock or
deferred stock units. Directors have three years to attain this guideline.</TD>
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