EXECUTION COPY
 
AMENDMENT NO. 3
 
Dated as of September 30, 2011
 
to
 
CREDIT AGREEMENT
 
Dated as of August 23, 2010
 
THIS AMENDMENT NO. 3 (this “Amendment”) is made as of September 30, 2011 by and
among Parametric Technology Corporation, a Massachusetts corporation (the
“Borrower”), the financial institutions listed on the signature pages hereof and
JPMorgan Chase Bank, N.A., as Administrative Agent (the “Administrative Agent’),
under that certain Credit Agreement dated as of August 23, 2010 by and among the
Borrower, the Lenders and the Administrative Agent as amended by Amendment No. 1
to Credit Agreement dated as of December 20, 2010 and by Amendment No. 2 to
Credit Agreement dated May 9, 2011 (as further amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”).  Capitalized
terms used herein and not otherwise defined herein shall have the respective
meanings given to them in the Credit Agreement.
 
WHEREAS, the Borrower has requested that the requisite Lenders and the
Administrative Agent agree to an amendment to the Credit Agreement;
 
WHEREAS, the Borrower, the Lenders party hereto and the Administrative Agent
have so agreed on the terms and conditions set forth herein;
 
NOW, THEREFORE, in consideration of the premises set forth above, the terms and
conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Borrower, the
Lenders party hereto and the Administrative Agent hereby agree to enter into
this Amendment.
 
1. Amendment to the Credit Agreement.  Effective as of the Amendment No. 3
Effective Date (as defined below), the parties hereto agree the parties hereto
agree that the Credit Agreement is hereby amended as follows:
 
(a) The definition of “Applicable Rate” appearing in Section 1.01 of the Credit
Agreement is amended to amend and restate in their entirety the pricing grid
appearing therein and clause (iii) thereof, in each case to read as follows:
 

 
Leverage Ratio:
 
Eurocurrency
Spread
 
ABR
Spread
 
Commitment
Fee Rate
Category 1:
 
< 1.00 to 1.00
1.25%
0.25%
0.20%
Category 2:
> 1.00 to 1.00 but
< 2.00 to 1.00
1.375%
0.375%
0.25%
Category 3:
 
> 2.00 to 1.00
1.625%
0.625%
0.30%

 

 
 
 

--------------------------------------------------------------------------------

 
(iii)           notwithstanding the foregoing, Category 2 shall be deemed to be
applicable until the Administrative Agent’s receipt of the applicable Financials
for the Borrower’s second full fiscal quarter ending after the Amendment No. 3
Effective Date (unless such Financials demonstrate that Category 3 should have
been applicable during such period, in which case such other Category shall be
deemed to be applicable during such period) and adjustments to the Category then
in effect shall thereafter be effected in accordance with the preceding
paragraphs.

(b) The definition of “Maturity Date” appearing in Section 1.01 of the Credit
Agreement is amended to delete the date “August 22, 2014” appearing therein and
to replace such date with the date “September 30, 2016”.
 
(c) Section 1.01 of the Credit Agreement is amended to add the following
definition thereto and, where applicable, to replace the corresponding
previously existing definitions:
 
“Amendment No. 3 Effective Date” means September 30, 2011.
 
“Consolidated Fixed Charges” means, for any period, as determined on a
Consolidated basis and in accordance with GAAP, without duplication, the
aggregate of (a) Consolidated Interest Expense (including, without limitation,
the “imputed interest” portion of Capitalized Lease Obligations, synthetic
leases and asset securitizations, if any), (b) scheduled principal payments on
Consolidated Funded Indebtedness (for the avoidance of doubt, excluding all
prepayments of the Revolving Loans) and (c) Capital Distributions.
 
“Fixed Charge Coverage Ratio”  means, as of any date of determination for the
Borrower, on a Consolidated basis and in accordance with GAAP, the ratio of (a)
Consolidated EBITDA minus Consolidated Capital Expenditures, for the period of
four consecutive fiscal quarters ending on or most recently ended prior to such
date, to (b) Consolidated Fixed Charges for such period.
 
(d) The parties hereto hereby acknowledge and agree that, as of the Amendment
No. 3 Effective Date, Sovereign Bank shall no longer be a Co-Documentation Agent
and all references in the Credit Agreement to Sovereign Bank in its capacity as
Co-Documentation Agent shall be deleted and of no further force and effect.
 
(e) Schedule 2.01 to the Credit Agreement is replaced in its entirety with
Schedule 2.01 attached hereto as Annex A.
 
2. Conditions of Effectiveness.  The effectiveness of this Amendment (the
“Amendment No. 3 Effective Date”) is subject to the conditions precedent that:
 
(a) The Administrative Agent shall have received (i) counterparts of this
Amendment duly executed by the Borrower, the Lenders and the Administrative
Agent and (ii) counterparts of the Consent and Reaffirmation attached as Exhibit
A hereto duly executed by the Subsidiary Guarantors.
 
(b) The Administrative Agent shall have received such instruments and documents
as the Administrative Agents shall reasonably request, including a written
opinion of the Borrower’s counsel, Edwards Angell Palmer & Dodge LLP, in form
and substance reasonably acceptable to the Administrative Agent.
 
 
 

--------------------------------------------------------------------------------

 
(c) The Administrative Agent shall have received all fees and other amounts due
and payable on or prior to the Amendment No. 3 Effective Date, including, to the
extent invoiced, reimbursement or payment of all out-of-pocket expenses
(including fees and expenses of counsel for the Administrative Agent) required
to be reimbursed or paid by the Borrower in connection with this Amendment.
 
(d) the Administrative Agent shall have made such reallocations of each Lender’s
Applicable Percentage of the Revolving Credit Exposure under the Credit
Agreement as are necessary in order that the Revolving Credit Exposure with
respect to such Lender reflects such Lender’s Applicable Percentage of the
Revolving Credit Exposure under the Credit Agreement as amended hereby.
 
3. Representations and Warranties of the Borrower.  The Borrower hereby
represents and warrants as follows:
 
(a) This Amendment and the Credit Agreement as modified hereby constitute valid
and binding obligations of the Borrower and are enforceable against the Borrower
in accordance with their terms.
 
(b) As of the date hereof and after giving effect to the terms of this
Amendment, (i) no Default or Event of Default shall have occurred and be
continuing, and (ii) the representations and warranties of the Borrower set
forth in the Credit Agreement are true and correct in all material respects (or,
if a representation or warranty is expressly stated to have been made as of a
specific date, such representation or warranty shall be true and correct in all
material respects as of such specific date).
 
4. Reference to and Effect on the Credit Agreement.
 
(a) Upon the effectiveness hereof, each reference to the Credit Agreement in the
Credit Agreement or any other Loan Document shall mean and be a reference to the
Credit Agreement as amended hereby.
 
(b) Each Loan Document and all other documents, instruments and agreements
executed and/or delivered in connection therewith shall remain in full force and
effect and are hereby ratified and confirmed.
 
(c) Except with respect to the subject matter hereof, the execution, delivery
and effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy of the Administrative Agent or the Lenders, nor constitute a
waiver of any provision of the Credit Agreement, the Loan Documents or any other
documents, instruments and agreements executed and/or delivered in connection
therewith.
 
5. Governing Law.  This Amendment shall be construed in accordance with and
governed by the law of the State of New York.
 
6. Headings.  Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.
 
7. Counterparts.  This Amendment may be executed by one or more of the parties
hereto on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.
 
[Signature Pages Follow]

6157851v.4
 
 

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year
first above written.
 

   
PARAMETRIC TECHNOLOGY CORPORATION,
   
as the Borrower
               
By:
/s/ Jeffrey D. Glidden
   
Name:
Jeffrey D. Glidden
   
Title:
EVP and Chief Financial Officer

Signature Page to Amendment No. 3 to
Credit Agreement dated as of August 23, 2010
Parametric Technology Corporation
 
 

--------------------------------------------------------------------------------

 

   
JPMORGAN CHASE BANK, N.A.,
   
individually as a Lender and as Administrative Agent
               
By:
/s/ D. Scott Farquhar
   
Name:
D. Scott Farquhar
   
Title:
Senior Vice President

Signature Page to Amendment No. 3 to
Credit Agreement dated as of August 23, 2010
Parametric Technology Corporation
 
 

--------------------------------------------------------------------------------

 

   
KEYBANK NATIONAL ASSOCIATION,
   
as a Lender
               
By:
/s/ David A. Wild
   
Name:
David A. Wild
   
Title:
Senior Vice President

Signature Page to Amendment No. 3 to
Credit Agreement dated as of August 23, 2010
Parametric Technology Corporation
 
 

--------------------------------------------------------------------------------

 

   
RBS CITIZENS, NATIONAL ASSOCIATION,
   
as a Lender
               
By:
/s/ William M. Clossey
   
Name:
William M. Clossey
   
Title:
Vice President

Signature Page to Amendment No. 3 to
Credit Agreement dated as of August 23, 2010
Parametric Technology Corporation
 
 

--------------------------------------------------------------------------------

 

   
WELLS FARGO BANK, NATIONAL ASSOCIATION,
   
as a Lender
               
By:
/s/ Denis Waltrich
   
Name:
Denis Waltrick
   
Title:
Vice President

Signature Page to Amendment No. 3 to
Credit Agreement dated as of August 23, 2010
Parametric Technology Corporation
 
 

--------------------------------------------------------------------------------

 

   
SOVEREIGN BANK,
   
as a Lender
               
By:
/s/ A. Neil Sweeny
   
Name:
A. Neil Sweeny
   
Title:
Senior Vice President

Signature Page to Amendment No. 3 to
Credit Agreement dated as of August 23, 2010
Parametric Technology Corporation
 
 

--------------------------------------------------------------------------------

 

   
SILICON VALLEY BANK,
   
as a Lender
               
By:
/s/ Philip T. Silvia III
   
Name:
Philip T. Silvia III
   
Title:
Vice President

Signature Page to Amendment No. 3 to
Credit Agreement dated as of August 23, 2010
Parametric Technology Corporation
 
 

--------------------------------------------------------------------------------

 

   
THE HUNTINGTON NATIONAL BANK,
   
as a Lender
               
By:
/s/ Joe Tonges
   
Name:
Joe Tonges
   
Title:
Vice President

Signature Page to Amendment No. 3 to
Credit Agreement dated as of August 23, 2010
Parametric Technology Corporation
 
 

--------------------------------------------------------------------------------

 

   
TD BANK, N.A.,
   
as a Lender
               
By:
/s/ Todd Antico
   
Name:
Todd Antico
   
Title:
Senior VP

Signature Page to Amendment No. 3 to
Credit Agreement dated as of August 23, 2010
Parametric Technology Corporation
 
 

--------------------------------------------------------------------------------

 

   
HSBC BANK USA, NATIONAL ASSOCIATION,
   
as a Lender
               
By:
/s/ Kerry Anne O’Callaghan
   
Name:
Kerry Anne O’Callaghan
   
Title:
Sr. AVP

Signature Page to Amendment No. 3 to
Credit Agreement dated as of August 23, 2010
Parametric Technology Corporation
 
 

--------------------------------------------------------------------------------

 

   
BANK OF AMERICA, N.A.,
   
as a Lender
               
By:
/s/ William S. Rowe
   
Name:
William S. Rowe
   
Title:
Director

Signature Page to Amendment No. 3 to
Credit Agreement dated as of August 23, 2010
Parametric Technology Corporation
 
 

--------------------------------------------------------------------------------

 

EXHIBIT A
 
Consent and Reaffirmation
 
Each of the undersigned hereby acknowledges receipt of a copy of the foregoing
Amendment No. 3 to the Credit Agreement (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”) by
and among Parametric Technology Corporation, a Massachusetts corporation (the
“Borrower”) the Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent
(the “Administrative Agent”), which Amendment No. 3 is dated as of September 30,
2011 and is by and among the Borrower, the financial institutions listed on the
signature pages thereof and the Administrative Agent (the
“Amendment”).  Capitalized terms used in this Consent and Reaffirmation and not
defined herein shall have the meanings given to them in the Credit
Agreement.  Without in any way establishing a course of dealing by the
Administrative Agent or any Lender, each of the undersigned consents to the
Amendment and reaffirms the terms and conditions of the Subsidiary Guaranty and
any other Loan Document executed by it and acknowledges and agrees that the
Subsidiary Guaranty and each and every such Loan Document executed by the
undersigned in connection with the Credit Agreement remains in full force and
effect and is hereby reaffirmed, ratified and confirmed.  All references to the
Credit Agreement contained in the above-referenced documents shall be a
reference to the Credit Agreement as so modified by the Amendment and as the
same may from time to time hereafter be amended, modified or restated.
 

Dated: September 30, 2011
[Signature Page Follows]

 
 

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, this Consent and Reaffirmation has been duly executed as of
the day and year above written.

PARAMETRIC HOLDINGS INC.
 
COMPUTERVISION LLC, by its sole member
         
PARAMETRIC TECHNOLOGY CORPORATION
     
By:
/s/ Stephen G. Bouchard
 
By:
/s/ Stephen G. Bouchard
Name:
Stephen G. Bouchard
 
Name:
Stephen G. Bouchard
Title:
Treasurer
 
Title:
Treasurer
           
PTC INTERNATIONAL, INC.
 
PTC NETHERLANDS LLC
     
By:
/s/ Stephen G. Bouchard
 
By:
/s/ Stephen G. Bouchard
Name:
Stephen G. Bouchard
 
Name:
Stephen G. Bouchard
Title:
Treasurer
 
Title:
Treasurer
           
ARBORTEXT, INC.
 
RELEX SOFTWARE CORPORATION
     
By:
/s/ Stephen G. Bouchard
 
By:
/s/ Stephen G. Bouchard
Name:
Stephen G. Bouchard
 
Name:
Stephen G. Bouchard
Title:
Treasurer
 
Title:
Treasurer
           
MKS SOFTWARE INC.
 
MORTICE KERNS SYSTEMS HOLDINGS, INC.
     
By:
/s/ Stephen G. Bouchard
 
By:
/s/ Stephen G. Bouchard
Name:
Stephen G. Bouchard
 
Name:
Stephen G. Bouchard
Title:
Treasurer
 
Title:
Treasurer
           

Signature Page to Consent and Reaffirmation to Amendment No. 3 to
Credit Agreement dated as of August 23, 2010
Parametric Technology Corporation
 
 

--------------------------------------------------------------------------------

 

Annex A
 
 
SCHEDULE 2.01
 
 

 
 
COMMITMENTS
 
LENDER
COMMITMENT
   
JPMORGAN CHASE BANK, N.A.
$43,750,000
   
KEYBANK NATIONAL ASSOCIATION
$43,750,000
   
RBS CITIZENS, NATIONAL ASSOCIATION
$32,500,000
   
WELLS FARGO BANK, NATIONAL ASSOCIATION
$32,500,000
   
SOVEREIGN BANK
$27,500,000
   
SILICON VALLEY BANK
$27,500,000
   
THE HUNTINGTON NATIONAL BANK
$27,500,000
   
TD BANK, N.A.
$27,500,000
   
HSBC BANK USA, NATIONAL ASSOCIATION
$27,500,000
   
BANK OF AMERICA, N.A.
$10,000,000
   
AGGREGATE COMMITMENT
$300,000,000