Document:

exv10w8

 

EXHIBIT 10.8

E-1

EMPLOYMENT AGREEMENT

     This Agreement, made this 8th day of August, 2002, by and between STURGIS
BANK & TRUST COMPANY, a Michigan savings bank (“STURGIS”), and STEVEN L. GAGE,
of 1215 N. 060 East, LaGrange, Indiana 46761 (“Employee”).

     W I T N E S S E T H:

     WHEREAS, STURGIS desires to employ Employee and Employee desires to be
employed by STURGIS upon the terms and conditions set forth herein.

     1.     Employment. STURGIS hereby employs Employee as Senior Vice President
and Employee hereby accepts employment by STURGIS upon the terms and conditions
herein set forth. The primary place of employment shall be at STURGIS’
principal offices, Sturgis, Michigan, or at such other location as STURGIS may
designate.

     2.     Term. The term of this Agreement shall commence as of August 6, 2002
for a term ending April 30, 2005, subject to renewal on an annual basis, unless
sooner terminated as hereinafter set forth.

     3.     Duties. Employee will, during the term hereof:

     (A)  Faithfully and diligently do and perform all such acts and duties and
furnish such services as the Board of Directors of STURGIS shall direct, and
do and perform all acts in the ordinary course of STURGIS’ business, with such
limits as the Board of STURGIS may prescribe, necessary and conducive to
STURGIS’ best interests; and,

     (B)  Devote his full time, energy, and skill to the business of STURGIS and
to the promotion of STURGIS’ best interests, except for vacations and absences
made necessary because of illness.

     4.     Compensation.

     (A)  Subject to the provisions of Paragraphs 6 and 7 hereof, STURGIS shall
pay to Employee for all services to be performed by Employee during the term of
this Agreement:

		
	 	(i) a salary at the rate of Ninety One Thousand ($91,000.00) Dollars per
annum, payable in periodic payments in accordance with STURGIS’ practices
for other executive, managerial, and supervisory employees, as such
practices may be determined from time to time. The Board of Directors of
STURGIS (“Board of Directors”) will review such fixed salary annually
after the initial term, and, in its discretion, may grant increases or
decreases thereof based upon Employee’s performance; and

 

		
	 	(ii) any additional or special compensation, such as incentive pay or
bonuses, based upon Employee’s performance, as the Board of Directors in
its discretion, may from time to time determine.

All such payments will be subject to such deductions as may be required to be
made pursuant to law, government regulation or order, or by agreement with, or
consent of, Employee.

     (B)  In addition to the salary payments set forth above, STURGIS agrees
that during the term of this Agreement:

		
	 	(i) Employee shall be entitled to reimbursement by STURGIS for all
reasonable expenses actually and necessarily incurred by him on its
behalf in the course of his employment hereunder, for which he shall
submit vouchers in a form satisfactory to STURGIS and which are approved
by STURGIS in its sole discretion;

		
	 	(ii) STURGIS shall reimburse Employee for automobile expenses incurred
by Employee on behalf of STURGIS upon a mutually agreeable basis.

     5.     Benefits. Employee shall be entitled to participate in such life
insurance, medical, pension, retirement, and stock option plans and other
programs, including sick leave, as may be approved from time to time by STURGIS
for the benefit of its employees. Employee also shall be entitled to no less
than four (4) weeks of vacation under STURGIS’ current policy, as amended.
The said vacation shall not be carried over from year to year.

     6.     Termination. Employee’s employment with STURGIS shall terminate by
reason of Employee’s death, or total and/or permanent disability (as defined
for social security purposes) or for cause. STURGIS shall have the sole
discretion to determine whether the conditions constituting a termination for
cause have occurred. In the event of a termination of employment pursuant to
this paragraph 6, all obligations of STURGIS hereunder shall terminate.

     A.     In addition to the foregoing, STURGIS’ Board of Directors may terminate
the Employee’s employment at any time, but any termination by STURGIS’ Board of
Directors other than termination for cause, shall not prejudice the Employee’s
right to compensation or other benefits under the contract. The Employee shall
have no right to receive compensation or other benefits for any period after
termination for cause. Termination for cause shall include termination because
of the Employee’s personal dishonesty, incompetence, willful misconduct, breach
of fiduciary duty involving personal profit, intentional failure to perform
stated duties, willful violation of any law, rule, or regulation, (other than
traffic violations or similar offenses) or final cease-and-desist order, or
material breach of any provision of this contract.

     B.     If the Employee is suspended and/or temporarily prohibited from

 

participating in the conduct of STURGIS’ affairs by a notice served under
section 8(e)(3) or (g)(1) of (the) Federal Deposit Insurance Act (12 U.S.C.
1818(e)(3) and (g)(1) STURGIS’ obligations under the contract shall be
suspended as of the date of service unless stayed by appropriate proceedings.
If the charges in the notice are dismissed, STURGIS may in its discretion (i)
pay the Employee all or part of the compensation withheld while its contract
obligations were suspended and (ii) reinstate (in whole or in part) any of its
obligations which were suspended.

     C.     If the Employee is removed and/or permanently prohibited from
participating in the conduct of STURGIS’ affairs by an order issued under
section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C.
1818(e)(4) or (g)(1)), all obligations of STURGIS under the contract shall
terminate as of the effective date of the order, but vested rights of the
contracting parties shall not be affected.

     D.     If STURGIS is in default (as defined in section 3(x)(1) of the Federal
Deposit Insurance Act), all obligations under the contract shall terminate as
of the date of default, but this paragraph D. shall not affect any vested
rights of the contracting parties.

     E.     All obligations under the contract shall be terminated, except to the
extent determined that continuation of the contract is necessary (for the
continued operation of STURGIS:)

		
	 	(i) by the Director or his or her designee, at the time the Federal
Deposit Insurance Corporation or the Michigan Financial Institutions
Bureau enters into an agreement to provide assistance to or on behalf of
STURGIS under the authority contained in section 13(c) of the Federal
Deposit Insurance Act; or

		
	 	(ii) by the Director or his or her designee, at the time the Director or
his or her designee approves a supervisory merger to resolve problems
related to operation of STURGIS or when STURGIS is determined by the
Director to be in an unsafe or unsound condition.

     Any rights of the parties that have already vested, however, shall not be
affected by such action.

     F.     Upon thirty (30) days written notice by Employee to STURGIS, the
Employee may terminate this Agreement forfeiting all of his rights including
vested rights unless Employee terminates such employment with good reason (as
defined in the Agreement).

     7.     Change In Control. If within five (5) years after a change in control
(as defined in this Agreement) STURGIS shall terminate Employee without cause
(as defined in this Agreement) or Employee shall voluntarily terminate such
employment with good reason (as defined in this Agreement) STURGIS shall,
within ninety (90) days of the termination make a lump sum cash payment to him
equal to three (3) year’s salary in accordance with Internal Revenue Code
section 280(G), as amended. If it is mutually in

 

the best interest of STURGIS
and Employee, the Employee shall have the right to elect by written request to
the Board of Directors to receive a cash payment equal to one year’s salary and
the remaining two (2) years’ salary on an installment basis in accordance with
Internal Revenue Code section 280(G). Employee shall not be paid any
compensation under this agreement other than that specified in this paragraph.

     8.     Definitions. For purposes of this Agreement:

     (A)  “Cause” shall include in its meaning:

		
	 	(i) Employee’s conviction of any criminal violation involving
dishonesty, fraud, or breach of trust;

		
	 	(ii) Employee’s willful engagement in any misconduct in the performance
of his duty that materially injures STURGIS;

		
	 	(iii) Employee’s performance of any act which, if known to the
customers, clients or stockholders of STURGIS would materially and
adversely impact on the business of STURGIS;

		
	 	(iv) Employee’s willful and substantial nonperformance of his duties and
such nonperformance continues more than ten (10) days after STURGIS has
given written notice of such nonperformance and of its intention to
terminate Employee’s employment because of such nonperformance; or,

		
	 	(v)  Employee’s willful violation of paragraphs 9 or 10 herein.

     (B)  “Good Reason” shall exist if, without Employee’s express written
consent:

		
	 	(i) STURGIS shall assign to Employee duties of a nonexecutive nature or
for which Employee is not reasonably equipped by his skills and
experience;

		
	 	(ii) STURGIS shall reduce the salary of Employee, or materially reduce
the amount of paid vacations to which he is entitled, or his fringe
benefits and perquisites;

		
	 	(iii) STURGIS shall require Employee to relocate his principal business
office or his principal place of residence outside the Sturgis, Michigan
Marketing Area (the “Area”), or assign to Employee duties that would
reasonably require such relocation;

		
	 	(iv) STURGIS shall require Employee, or assign duties to Employee which
would reasonably require him to spend more than ninety (90) normal
working days away from the Area during any consecutive twelve (12) month
period;

		
	 	(v) STURGIS shall fail to provide office facilities, secretarial
services, and other

 

		
	 	administrative services to Employee which are
substantially equivalent to the facilities and services provided to
Employee on the date hereof; or,

		
	 	(vi) STURGIS shall terminate incentive and benefit plans or
arrangements, or reduce or limit Employee’s participation therein
relative to the level of participation of other executives of similar
rank, to such an extent as to materially reduce the aggregate value of
Employee’s incentive compensation and benefits below their aggregate
value of the date hereof.

     (C)  “Change in Control”, (except as provided in subparagraph (v)), shall
be deemed to occur on the earliest of:

		
	 	(i) The Acquisition by any entity, person, or group of beneficial
ownership, as that term is defined in Rule 13d-3 under the Securities
Exchange Act of 1934, of more than fifty percent (50%) of the outstanding
capital stock of STURGIS entitled to vote for the election of directors
(“Voting Stock”);

		
	 	(ii) The commencement by any entity, person, or group (other than
STURGIS or a subsidiary of STURGIS) of a tender offer or an exchange
offer for more than twenty-five percent (25%) of the outstanding Voting
Stock of STURGIS;

		
	 	(iii) The effective time of (1) a merger or consolidation of STURGIS
with one or more other corporations as a result of which the holders of
the outstanding Voting Stock of STURGIS immediately prior to such merger
hold less than fifty percent (50%) of the Voting Stock of the surviving
or resulting corporation, or (2) a transfer of substantially all of the
property of STURGIS other than to an entity of which STURGIS owns at
least eighty percent (80%) of the Voting Stock.

		
	 	(iv) The election to the Board of Directors of STURGIS without the
recommendation or approval of the incumbent Board of Directors of
STURGIS, of the lesser of three directors or directors constituting a
majority of the number of Directors of STURGIS then in office.

     9.     Restrictive Covenant. During the term of this Agreement, and for a
period of one (1) year following the termination of Employee’s employment with
STURGIS pursuant to this Agreement including termination occasioned by the
expiration of this Agreement, and in consideration for payments made on an
installment basis to Employee pursuant to Internal Revenue Code Section 280(G)
as amended, Employee shall not:

     (A)  Within a geographic radius of seventy-five (75) miles from Sturgis,
Michigan, engage in, or work for, manage, operate, control or participate in
the ownership, management, operation or control of, or be connected with, or
have any financial interest in, any individual, partnership, firm, corporation
or institution engaged in the same or similar activities to those now or
hereafter carried on by STURGIS;

     (B)  Interfere with the relationship of STURGIS and any of its employees,

 

agents or representatives; and,

     (C)  Directly or indirectly divert or attempt to divert from STURGIS any
business in which STURGIS has been actively engaged during the term hereof, nor
interfere with the relationships of STURGIS with its dealers, distributors,
sources of supply or customers.

Any breach of the covenant not to compete by Employee will result in the
forfeiture by Employee and all other persons of any and all rights to unpaid
benefits and payments at the time of breach and in such event STURGIS shall
have no further obligation to pay any amounts related thereto.

     10.     Nondisclosure of Confidential Information. Employee acknowledges that
STURGIS may disclose certain confidential information to Employee during the
term of this Agreement to enable him to perform his duties hereunder. Employee
hereby covenants and agrees that he will not, without the prior written consent
of STURGIS, during the term of this Agreement or at any time thereafter,
disclose or permit to be disclosed to any third party by any method whatsoever
any of the confidential information of STURGIS. For purposes of this
Agreement, “confidential information” shall include, but not be limited to, any
and all records, notes, memoranda, data, ideas, techniques, programs, computer
software, writings, research, personnel information, customer information,
STURGIS’ financial information, plans, or any other information of whatever
nature in the possession or control of STURGIS which has not been published or
disclosed to the general public, or which gives to STURGIS an opportunity to
obtain an advantage over competitors who do not know of or use it. Employee
further agrees that if his employment hereunder is terminated for any reason,
he will leave with STURGIS and will not take originals or copies of any and all
records, papers, programs, computer software and documents and all matter of
whatever nature which bears secret or confidential information of STURGIS.

     The foregoing paragraph shall not be applicable if and to the extent
Employee is required to testify in a judicial or regulatory proceeding pursuant
to an order of a judge or administrative law judge issued after Employee and
his legal counsel urge that the aforementioned confidentiality be preserved.

     Employee agrees, without charge to STURGIS or at STURGIS’ expense, to
execute, acknowledge and deliver to STURGIS all such papers, including
trademark registrations, and assignments thereof, as may be necessary, and at
all times to assist STURGIS, its successors, assigns and nominees in every
proper way to patent or register said programs, ideas, discoveries,
improvements, copyrightable material or trademarks in any and all countries and
to vest title thereto in STURGIS, its parent, subsidiaries, successors, assigns
or nominees.

     Employee will promptly report to STURGIS all discoveries, inventions, or
improvements of whatever nature conceived or made by him at any time he was
employed by STURGIS, its parent, subsidiaries or successors. All such
discoveries, inventions and

 

improvements which are applicable in any way to
STURGIS’ business shall be the sole and exclusive property of STURGIS.

     The covenants set forth in this paragraph which are made by Employee are
in consideration of the employment, or continuing employment of, and the
compensation paid to, Employee during his employment by STURGIS. The foregoing
covenants will not prohibit Employee from disclosing confidential or other
information to other employees of STURGIS or to third parties to the extent
that such disclosure is necessary to the performance of his duties under this
Agreement.

     11.     Additional Remedies. It is expressly understood and agreed that
although Employee and STURGIS consider the restrictions contained in this
Agreement to be reasonable for the purpose of preserving the going business
value and goodwill of STURGIS, if a final judicial determination is made by a
court having jurisdiction that the time or territory or any other restriction
contained in this Agreement is an unenforceable restriction against the
Employee, provisions of such restrictions shall not be rendered void but shall
be deemed amended to apply as to such maximum time and territory and to such
other extent as such court may judicially determine or indicate to be
reasonable. Alternatively, if the court referred to above finds that any
restriction contained in this Agreement is unenforceable, and such restriction
cannot be amended so as to make it enforceable, such findings shall not effect
the enforceability of any of the other restrictions contained herein.

     The Employee acknowledges and agrees that STURGIS’ remedy at law for a
breach or threatened breach of any of the provisions of this Agreement would be
inadequate and, in recognition of this fact, in the event of a breach or a
threatened breach by the Employee of any of the provisions, it is agreed that,
in addition to its remedy at law, STURGIS shall be entitled, without posting
any bond, to obtain equitable relief, and the Employee agrees not to oppose
STURGIS’ request for equitable relief in the form of specific performance,
temporary restraining order, temporary or permanent injunction, or any other
equitable remedy which may then be available. The Employee acknowledges that
the granting of a temporary injunction, temporary restraining order or
permanent injunction merely prohibiting a breach or threatened breach would not
be an adequate remedy, and consequently agrees upon any such breach or
threatened breach to the granting of injunctive relief. Nothing herein
contained shall be construed as prohibiting STURGIS from pursuing any other
remedies available to it for such breach or threatened breach.

     12.     Nonassignment. This Agreement is personal to Employee and shall not
be assigned by him. Employee shall not delegate, encumber, alienate, transfer
or otherwise dispose of his rights and duties hereunder. STURGIS may assign
this Agreement without Employee’s consent to any other entity who, in
connection with such assignment, acquires all or substantially all of STURGIS’
assets or into or with which STURGIS is merged or consolidated.

     13.     Waiver. The waiver by STURGIS of a breach by Employee of any

 

provision of this Agreement shall not be construed as a waiver of any
subsequent breach by Employee.

     14.     Severability. If any clause, phrase, provision or portion of this
Agreement or the application thereof to any person or circumstance shall be
invalid or unenforceable under any applicable law, such event shall not affect
or render invalid or unenforceable the remainder of this Agreement and shall
not affect the application of any clause, provision, or portion hereof to other
persons or circumstances.

     15.     Benefit. The provisions of this Agreement shall inure to the benefit
of STURGIS, its successors and assigns, and shall be binding upon STURGIS and
Employee, its and his heirs, personal representatives and successors, including
without limitation Employee’s estate and the executors, administrators, or
trustees of such estate.

     16.     Relevant Law. This Agreement shall be construed and enforced in
accordance with the laws of the United States and State of Michigan.

     17.     Notices. All notices, requests, demands and other communications in
connection with this Agreement shall be made in writing and shall be deemed to
have been given when delivered by hand or 48 hours after mailing at any general
or branch United States Post Office, by registered or certified mail, postage
prepaid, addressed as follows, or to such other address as shall have been
designated in writing by the addressee:

     (A)  If to STURGIS :

	 	

Attn: Chairman of the Board

119-125 East Chicago Road

Sturgis, Michigan 49091

     (B)  If to Employee:

	 	
Steven L. Gage

1215 N. 060 East

LaGrange, Indiana 46761

     18.     Entire Agreement. This Agreement sets forth the entire understanding
of the parties and supersedes all prior agreements, arrangements, and
communications, whether oral or written, pertaining to the subject matter
hereof; and this Agreement shall not be modified or amended except by written
agreement of STURGIS and Employee.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
date first set forth above.

 

	 	 	 
	 	 	
STURGIS BANK & TRUST COMPANY
	 
	 	 	/s/ Eric L.
Eishen

By:       Eric L. Eishen

Its:      President
	 
	ATTEST:	 	 
	 
	/s/ Brian P. Hoggatt

Brian P. Hoggatt, Secretary	 	 
	 
	 	 	
EMPLOYEE:
	 
	 	 	
/s/ Steven L. Gage

Steven L. Gage<PAGE>
                             COMSHARE, INCORPORATED

                 NINTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER

Harris Trust and Savings Bank
Chicago, Illinois

Ladies and Gentlemen:

         Reference is hereby made to that certain Credit Agreement (as amended,
supplemented, modified or restated from time to time, the "Credit Agreement"),
dated as of September 23, 1997, by and among Comshare, Incorporated (the
"Company") and Comshare Limited (the "Borrowing Subsidiary") (together the
"Borrowers") and Harris Trust and Savings Bank (the "Bank"). All capitalized
terms used herein without definition shall have the same meanings herein as such
terms have in the Credit Agreement.

         The Borrowers have requested that the Bank waive certain Events of
Default under, and amend certain provisions of, the Credit Agreement, and the
Bank will do so under the terms and conditions set forth in this Ninth Amendment
to Credit Agreement and Waiver (this "Amendment").

1.       WAIVER.

         (a) During the period ending June 30, 2002, the Company was in
violation of the financial covenants in Sections 8.7 (Net Worth), 8.8 (Fixed
Charge Coverage Ratio) and 8.9 (Minimum EBITDAL) of the Credit Agreement (the
"Violations"). Subject to the satisfaction of the conditions precedent set forth
in Section 3 below, the Bank hereby waives any Default or Event of Default that
would otherwise exist under the Credit Agreement by virtue of the Violations.

         (b) The waiver under this Section 1 shall be limited specifically as
written herein and shall be solely a waiver with respect to the above described
Violations, and it shall not constitute a waiver of the application of Sections
8.7, 8.8 and 8.9 of the Credit Agreement for any other fiscal period.

2.       AMENDMENTS.

         Subject to the satisfaction of the conditions precedent set forth in
Section 3 below, the Credit Agreement shall be and is hereby amended as follows:

                  2.1. Revolving Credit. The first sentence of Section 1.1 of
         the Credit Agreement shall be amended and restated in its entirety to
         read as follows:

<PAGE>

                           "The Revolving Credit may be utilized by each
                  Borrower in the form of loans (individually a "Loan" and
                  collectively the "Loans") on a revolving basis in U.S. Dollars
                  and Optional Currencies, all as more fully hereinafter set
                  forth; provided, however, that the aggregate amount of Loans
                  and Letters of Credit outstanding, or the U.S. Dollar
                  Equivalent thereof, for Loans or Letters of Credit denominated
                  in an Optional Currency, shall not at any one time shall
                  exceed $7,000,000 (such amount, as the same may be reduced
                  pursuant to Section 3.4 hereof, being hereinafter referred to
                  as the "Commitment")."

                  2.2. Mandatory Prepayment. Section 3.3 of the Credit Agreement
         shall be amended and restated in its entirety to read as follows:

                           "Section 3.3. Mandatory Prepayment. The Borrowers
                  covenant and agree that the aggregate outstanding amount of
                  Loans and Letters of Credit denominated in Optional Currencies
                  shall be revalued at the time of any extension of credit or of
                  any creation, conversion or continuation of a Eurocurrency
                  Portion (each a "Revaluation Event"). If (1) at the time of
                  any Revaluation Event, the aggregate amount of Loans and
                  Letters of Credit then outstanding, using the U.S. Dollar
                  Equivalent thereof determined at such time, for Loans or
                  Letters of Credit denominated in an Optional Currency, or (2)
                  at any time, the sum of the aggregate Original Dollar Amount
                  of Loans and Letters of Credit then outstanding, shall be in
                  excess of (in the case of either clauses (1) or (2), above),
                  the Commitment then in effect, the Borrowers shall immediately
                  and without notice or demand pay over the amount of the amount
                  of the excess to the Bank as and for a mandatory prepayment on
                  the Note until payment in full thereof. Each such prepayment
                  shall be accompanied by accrued interest on the amount prepaid
                  to the date of prepayment plus any amounts due to the Bank
                  under Section 11.5 hereof."

                  2.3. Definition Deletions. The definition of "Borrowing Base"
         in Section 5 of the Credit Agreement shall be and is hereby deleted in
         its entirety.

                  2.4. Termination Date. The definition of "Termination Date" in
         Section 5 of the Credit Agreement shall be amended and restated in its
         entirety to read as follows:

                           "Termination Date" means September 30, 2003, or such
                  earlier date on which the Commitment is terminated in whole
                  pursuant to Section 3.4, 9.2 or 9.3 hereof, or such later date
                  to which the Termination Date is extended pursuant to Section
                  12.4 hereof."

                                      -2-
<PAGE>

                  2.5. All Advances. Subsection (c) of Section 7.1 of the Credit
         Agreement shall be amended and restated in its entirety to read as
         follows:

                           "(c) in the case of any request for a Loan or for
                  issuance of a Letter of Credit, after giving effect to such
                  extension of credit, the aggregate amount of Loans and Letters
                  of Credit then outstanding, using the U.S. Dollar Equivalent
                  thereof determined at such time, for Loans or Letters of
                  Credit denominated in an Optional Currency, shall not exceed
                  the Commitment;"

                  2.6. Initial Advances. Subsection (g) of Section 7.2 of the
         Credit Agreement shall be amended and restated in its entirety to read
         as follows:

                           "(g)     [INTENTIONALLY OMITTED]"

                  2.7. Financial Reports. Section 8.5(a) of the Credit Agreement
         shall be amended and restated in its entirety to read as follows:

                           "(a)     [INTENTIONALLY OMITTED]"

                  2.8. Net Worth. Section 8.7 of the Credit Agreement shall be
         amended and restated in its entirety to read as follows:

                           "Section 8.7. Net Worth. The Company shall not, as of
                  the last day of each calendar quarter, permit Net Worth to be
                  less than the Minimum Required Amount. For purposes of this
                  Section, the term "Minimum Required Amount" shall mean as of
                  any time for which the same is to be determined (i)
                  $17,191,000 from July 1, 2002 through and including September
                  30, 2002, (ii) $17,798,000 thereafter and through and
                  including December 31, 2002, (iii) $18,487,000 thereafter and
                  through and including March 31, 2003, (iv) $20,691,000
                  thereafter, and provided that the Minimum Required Amount
                  shall be increased above such amount (but never decreased) as
                  of July 1, 2003 and each July 1 thereafter by an amount (if
                  positive) equal to 50% of Net Income for the then most
                  recently completed fiscal year of the Company."

                  2.9. Fixed Charge Coverage Ratio. Section 8.8 of the Credit
         Agreement shall be amended and restated in its entirety to read as
         follows:

                            "Section 8.8. Fixed Charge Coverage Ratio. The
                  Company shall not, as of each date set forth below (commencing
                  on September 30, 2002), permit the Fixed Charge Coverage Ratio
                  to be less than indicated below for such period:

                                      -3-
<PAGE>

                                                          FIXED CHARGE
         DURING THE PERIOD                               COVERAGE RATIO
                                                         FOR SUCH PERIOD
                                                        SHALL NOT BE LESS
                                                              THAN:

         The twelve calendar            9/30/02              0.29 to 1
         months ending

         The twelve calendar            12/31/02             0.73 to 1
         months ending

         The twelve calendar           3/31/03 and           1.25 to 1"
         months ending                each calendar
                                         quarter
                                        thereafter

                  2.10. Minimum EBITDAL. Section 8.9 of the Credit Agreement
         shall be amended and restated in its entirety to read as follows:

                           "Section 8.9. Minimum EBITDAL. As of the last day of
                  each fiscal quarter of the Company (commencing with the fiscal
                  quarter ending on September 30, 2002) during the periods
                  specified below, the Company will earn EBITDAL, for the period
                  of four consecutive fiscal quarters of the Company then ended,
                  in an amount not less (i) $986,000 for the four fiscal quarter
                  period ending September 30, 2002, (ii) $2,485,000 for the four
                  fiscal quarter period ending December 31, 2002, and (iii)
                  $5,000,000 for each four fiscal quarter period thereafter."

                  2.11. Borrowing Base Certificate. Exhibit B to the Credit
         Agreement shall be and is hereby deleted in its entirety.

3.       CONDITIONS PRECEDENT.

         The effectiveness of this Amendment is subject to the satisfaction of
all of the following conditions precedent:

                   (a)     The Borrowers and the Bank shall have executed and
         delivered this Amendment.

                   (b)     The Guarantors and each party signatory to that
         certain Debt Subordination Agreement dated September 23, 1997 shall
         have each executed and delivered to the Bank their consent to this
         Amendment in the forms set forth below.

                                      -4-
<PAGE>

                  (c) Legal matters incident to the execution and delivery of
         this Amendment shall be satisfactory to the Bank and its counsel.

                  (d) The Company shall have paid to the Bank an amendment fee
         in the amount of $10,500.

                  (e) The Company shall have deposited no less than $7,400,000
         in cash into a collateral account with the Bank.

                  (f) The Company and the Bank shall have entered into an
         amendment to the Security Agreement in form and substance acceptable to
         the Bank.

4.       REPRESENTATIONS.

         In order to induce the Bank to execute and deliver this Amendment, the
Borrowers hereby represent to the Bank that as of the date hereof the
representations and warranties set forth in Section 6 of the Credit Agreement
are and shall be and remain true and correct (except as waived herein, and
except that the representations contained in Section 6.5 shall be deemed to
refer to the most recent financial statements of the Borrowers delivered to the
Bank) and, except as waived herein, the Borrowers are in compliance with the
terms and conditions of the Credit Agreement and no Default or Event of Default
has occurred and is continuing under the Credit Agreement or shall result after
giving effect to this Amendment.

5.       MISCELLANEOUS.

        5.1. The Borrowers heretofore executed and delivered to the Bank the
Security Agreement, Pledge Agreement and certain other Collateral Documents. The
Borrowers hereby acknowledge and agree that the Liens created and provided for
by the Collateral Documents continue to secure, among other things, the
Obligations arising under the Credit Agreement as amended hereby; and the
Collateral Documents and the rights and remedies of the Bank thereunder, the
obligations of the Borrowers thereunder, and the Liens created and provided for
thereunder remain in full force and effect and shall not (except as amended in
conjunction herewith) be affected, impaired or discharged hereby. Nothing herein
contained shall in any manner affect or impair the priority of the liens and
security interests created and provided for by the Collateral Documents as to
the indebtedness which would be secured thereby prior to giving effect to this
Amendment.

        5.2. Except as specifically amended herein, the Credit Agreement shall
continue in full force and effect in accordance with its original terms.
Reference to this specific Amendment need not be made in the Credit Agreement,
the Note, or any other instrument or document executed in connection therewith,
or in any certificate, letter or communication issued or made pursuant to or
with respect to the Credit Agreement, any reference in any of such items to the
Credit Agreement being sufficient to refer to the Credit Agreement as amended
hereby.

                                      -5-
<PAGE>

        5.3. The Borrowers agree to pay on demand all costs and expenses of or
incurred by the Bank in connection with the negotiation, preparation, execution
and delivery of this Amendment, including the fees and expenses of counsel for
the Bank.

        5.4. This Amendment may be executed in any number of counterparts, and
by the different parties on different counterpart signature pages, all of which
taken together shall constitute one and the same agreement. Any of the parties
hereto may execute this Amendment by signing any such counterpart and each of
such counterparts shall for all purposes be deemed to be an original. This
Amendment shall be governed by the internal laws of the State of Illinois.

                           [SIGNATURE PAGE TO FOLLOW]

                                      -6-
<PAGE>

         This Ninth Amendment to Credit Agreement and Waiver is dated as of
September 30, 2002.

                            COMSHARE, INCORPORATED

                            By
                               Name__________________________________________
                               Title_________________________________________

                            COMSHARE LIMITED

                            By
                               Name__________________________________________
                               Title_________________________________________

         Accepted and agreed to as of the date last above written.

                            HARRIS TRUST AND SAVINGS BANK

                            By
                               Name__________________________________________
                               Title_________________________________________

                                      -7-
<PAGE>

                     GUARANTORS' ACKNOWLEDGEMENT AND CONSENT

         Each of the undersigned Guarantors heretofore previously executed and
delivered to the Bank certain Loan Documents. Each of the undersigned hereby
consents to the Ninth Amendment to the Credit Agreement and Waiver (the
"Amendment") as set forth above and confirms that the Loan Documents executed
and delivered by it and all of the undersigned's obligations thereunder remain
in full force and effect and, without limiting the foregoing, each of the
undersigned acknowledges and agrees that notwithstanding the execution and
delivery of the Amendment, the Loan Documents executed and delivered by each of
the undersigned to the Agent remain in full force and effect and the rights and
remedies of the Agent and the Lenders, the obligations of each of the
undersigned thereunder and the liens and security interests provided for
thereunder remain in full force and effect and shall not be affected, impaired
or discharged hereby. Each of the undersigned further agree that the consent of
the undersigned to any further amendments to the Credit Agreement shall not be
required as a result of this consent having been obtained, except to the extent,
if any, required by the Loan Documents referred to above.

                                       COMSHARE (U.S.), INC.
                                       COMSHARE HOLDINGS COMPANY
                                       COMSHARE LIMITED (CANADA)

                                       By
                                         Name________________________________
                                         Title_______________________________

<PAGE>

               SUBORDINATED CREDITORS' ACKNOWLEDGEMENT AND CONSENT

         Each of the undersigned heretofore executed in favor of the Bank a Debt
Subordination Agreement dated September 23, 1997. Each of the undersigned hereby
consent to the Ninth Amendment to Credit Agreement and Waiver as set forth above
and confirms that the Debt Subordination Agreement and all of the undersigned's
obligations thereunder remain in full force and effect. Each of the undersigned
further agree that the consent of the undersigned to any further amendments to
the Credit Agreement shall not be required as a result of this consent having
been obtained, except to the extent, if any, required by the Debt Subordination
Agreement referred to above.

                                       COMSHARE, INCORPORATED
                                       COMSHARE (U.S.), INC.
                                       COMSHARE LIMITED
                                       COMSHARE HOLDINGS COMPANY
                                       COMSHARE LIMITED (CANADA)

                                       By
                                         Name_________________________________
                                         Title________________________________

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