Document:

Exhibit
10.1

 

SECOND
AMENDMENT TO LEASE AGREEMENT

 

THIS SECOND
AMENDMENT TO LEASE AGREEMENT (hereinafter referred to as this “Second Amendment”) is entered into
this 3rd day of June, 2003, by and between 485 PROPERTIES, LLC, a
Delaware limited liability company (hereinafter referred to as “Landlord”), and EBIX.COM,
INC. a Delaware corporation, f/k/a Delphi Information Systems, Inc. (hereinafter referred to as
“Tenant”),

 

W I T N E S S E
T H:

 

WHEREAS,
Landlord and Tenant, entered into that certain Lease Agreement, dated October
20, 1998 (hereinafter referred to as the “Office Lease”), as amended by that
certain First Amendment to Lease Agreement between Landlord and Tenant, dated
February 10, 2000 (hereinafter referred to as the “First Amendment”; the
Office Lease, as amended by the First Amendment, is hereinafter sometimes
referred to as the “Lease”), pursuant to
which Tenant leased certain premises known as Suite 2850 on the twenty-eighth
(28th) floor and Suite 3200 on the thirty-second (32nd) floor of the
building presently known as “Corporate Center V” located at Five Concourse
Parkway, Atlanta, Georgia 30328 (hereinafter referred to as the “Building”),
which premises are more particularly described in the Lease (hereinafter
referred to as the “Premises”);

 

WHEREAS,
Landlord and Tenant desire to amend the Lease to extend further the term of the
Lease and to provide for certain other related matters, as are more
particularly set forth herein.

 

NOW,
THEREFORE, for and in consideration of the mutual covenants and conditions set
forth herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Landlord and Tenant agree to
amend the Lease as follows:

 

1.             Defined Terms.  Capitalized terms used herein, unless otherwise
defined herein, shall have the meanings given such terms in the Lease.

 

2.             Term. The Term of the Lease
is hereby extended for a period (hereinafter referred to as the “Extension
Period”) of seven (7) years and five (5) months, commencing June 1, 2003
(hereinafter sometimes referred to as the “Effective Date”) and continuing
through to and including a new term expiration date of October 31, 2010 (the
“New Term Expiration Date”).

 

3.             Terms of the Lease.  The lease of the Premises during the
Extension Period shall be pursuant to all of the terms and conditions of the
Lease as in effect from time to time; provided, however, that Landlord and
Tenant hereby agree that, from and after the Effective Date, the Lease shall be
modified as follows:

 

 

a.             Paragraph
2.  Rent.  Notwithstanding anything to the contrary in
the Lease, effective as of the Effective Date, Monthly Rental for the Premises
shall be payable to Landlord at P.O. Box 402862, Atlanta, Georgia
30384-2862 or at such other place Landlord designates, without demand,
deduction or setoff, in the following
amounts:

 

	
  Period

  	
   

  	
  Base Rental

  Per Rentable

  Square Foot

  Per Annum

  	
   

  	
  Annual Rental

  	
   

  	
  Monthly Rental

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  06/01/03-05/31/04

  	
   

  	
  $

  	
  20.50

  	
   

  	
  $

  	
  200,920.56

  	
   

  	
  $

  	
  16,743.38

  	
   

  
	
  06/01/04-05/31/05

  	
   

  	
  $

  	
  21.01

  	
   

  	
  $

  	
  205,919.04

  	
   

  	
  $

  	
  17,159.92

  	
   

  
	
  06/01/05-05/31/06

  	
   

  	
  $

  	
  21.54

  	
   

  	
  $

  	
  211,113.60

  	
   

  	
  $

  	
  17,592.80

  	
   

  
	
  06/01/06-05/31/07

  	
   

  	
  $

  	
  22.07

  	
   

  	
  $

  	
  216,308.04

  	
   

  	
  $

  	
  18,025.67

  	
   

  
	
  06/01/07-05/31/08

  	
   

  	
  $

  	
  22.63

  	
   

  	
  $

  	
  221,796.60

  	
   

  	
  $

  	
  18,483.05

  	
   

  
	
  06/01/08-05/31/09

  	
   

  	
  $

  	
  23.19

  	
   

  	
  $

  	
  227,285.16

  	
   

  	
  $

  	
  18,940.43

  	
   

  
	
  06/01/09-05/31/10

  	
   

  	
  $

  	
  23.77

  	
   

  	
  $

  	
  232,969.80

  	
   

  	
  $

  	
  19,414.15

  	
   

  
	
  06/01/10-10/31/10

  	
   

  	
  $

  	
  24.37

  	
   

  	
  $

  	
  238,850.40

  	
   

  	
  $

  	
  19,904.20

  	
   

  

 

b.             Paragraph
3.  Reimbursement for Increases
in Operating Expenses and Taxes.  On
and after the Effective Date, Tenant, in addition to Monthly Rental payable
with respect to the Premises, shall pay, as additional rental, Tenant’s Share
with respect to the Premises of increases in the Operating Costs for any
calendar year during the term of the Lease, as modified hereby (commencing with
calendar year 2004), over the “Initial Operating Costs,” which for this purpose
only shall be the actual Operating Costs for calendar year 2003, as adjusted
pursuant to the terms of the Lease. 
Notwithstanding the foregoing, Tenant shall remain obligated to pay
additional rental under Paragraph 3 of the Lease for the portion of calendar
year 2003 falling prior to the Effective Date, the same as if Initial Operating
Costs had not been adjusted pursuant to this Paragraph 3.b.

 

4.             Tenant Improvements.

 

a.             Tenant
agrees to accept the Premises in its “AS IS” condition, and Landlord shall have
no obligation to perform any work with respect to the Premises, or to provide
any allowances with respect thereto, except as otherwise hereinafter expressly
provided in this Paragraph 4.  Any
alterations or refurbishment to the Premises (“Tenant Improvements”) shall be
performed subject to and in accordance with the provisions of this Paragraph 3
and Exhibit C-1 to the First Amendment. 
The terms and conditions of said Exhibit C-1 to the First
Amendment shall apply to the Premises as if the Premises were the “First
Amendment Expansion Area” under said Exhibit C-1 except for the
following revisions;

 

(i)            Tenant shall provide to Architect
all specifications, information and documents necessary to enable Architect to
prepare the Tenant Space Plans as soon as reasonably possible (but in no event
later than June 3, 2003) (subsection 1 Section 2.01);

 

2

 

(ii)           Within five (5) working days after
receipt of all items, described in subparagraph (i) above, Architect shall
prepare and deliver to Tenant the Tenant Space Plans (subsection 2 Section
2.01);

 

(iii)          The prospective bidders for the
engagement as “Contractor” under Article 5, subsection A, shall be (1) Raven
Construction, (2) Schoppman Freese, and (3) KR Whitwer;

 

(iv)          Landlord designates Stacey Milam as
Landlord’s Agent under Section 6.01;

 

(v)           The “Allowance” shall be revised as
set forth below; and

 

(vi)          The following sentence shall be
inserted at the end of Paragraph 2 of Section 4.02:

 

“Such fees and costs may
be funded out of the Allowance, to the extent available.”

 

b.             Tenant acknowledges that the
Premises was previously improved for occupancy, and all improvements existing
on the date of this Second Amendment shall be left in place by Landlord and
shall be available for reuse or shall be demolished by Tenant as part of the
Tenant Improvement Costs with respect to the Premises for which Tenant is
responsible under the Lease and this Second Amendment.  Notwithstanding the foregoing or anything to
the contrary contained herein, Landlord shall provide an Allowance to Tenant
for the purpose of paying a portion of the Tenant Improvements Costs respecting
the Premises in the amount of up to One Hundred Ninety-Six Thousand Twenty and
No/100 Dollars ($196,020.00) in total (and not per square foot).  Landlord agrees to contribute said amount
toward the Tenant Improvement Costs in accordance with the provisions of
Section 4.01 of said Exhibit C-1 (the Tenant Improvement Costs shall
include, without limitation, (i) the space designer fees for Tenant
Improvements and (ii) construction supervision fees as provided in said Exhibit
C-1). Tenant shall pay to Landlord the amount of any excess Tenant’s Costs
in the manner provided in Section 4.3 of said Exhibit C-1.  If any
portion of the Refurbishment Allowance has not been advanced by Landlord on or
before November 30, 2003, (such date to be extended by one (1) day for each day
of delay not resulting from a Tenant Delay) the unused and remaining portion
shall be retained by Landlord, and Tenant shall have no right to such
unexpended Refurbishment Allowance.

 

c.             In order to induce Landlord to
deliver the Premises to Tenant prior to the installation of the Tenant
Improvements and to complete installation of the Tenant Improvements during
Tenant’s occupancy of the Premises, Landlord and Tenant hereby agree as
follows:

 

(i)                Landlord shall deliver the
Premises to Tenant in its “AS-IS” condition on the Commencement Date.  Tenant acknowledges that Landlord and
Landlord’s 

 

3

 

agents have made no
representations or warranties with respect to the Premises and no warranties
shall be implied under any applicable rule of law.

 

(ii)               The Tenant Improvements shall be
designed and installed in accordance with the provisions of this Paragraph 3
and Exhibit C-1 to the First Amendment. 
Tenant expressly acknowledges that, at Tenant’s request and in reliance
on this Paragraph 4, Landlord has agreed to grant Tenant occupancy of the
Premises prior to completion of the Tenant Improvements, and that completion of
the Tenant Improvements during Tenant’s occupancy of the Premises may result in
the inconvenience of Tenant or the interference with the conduct of Tenant’s
business in the Premises.  Tenant hereby
accepts such consequences and assumes all risks associated therewith.

 

(iii)              Landlord shall have the right to
recapture some or all of the space within the Premises on a temporary basis for
the construction and installation of the Tenant Improvements.  Landlord shall coordinate any such recapture
with Tenant in order to mitigate any inconvenience to Tenant resulting
therefrom.  During the construction of
the Tenant Improvements, Tenant shall cooperate with Landlord in providing
Landlord, its agents, employees and contractors, with access to the Premises
for construction and installation of the Tenant Improvements.  Notwithstanding such recapture, there shall
be no adjustment to or abatement of the Base Rental and other charges under the
Lease.

 

(iv)             Tenant acknowledges and agrees that
Landlord, its agents, employees and contractors may experience delays and
additional costs and expenses (such as, by way of example and not limitation,
overtime charges) in the construction and installation of the Tenant
Improvements due to Tenant’s occupancy of the Premises and that any such delay
shall be deemed a delay caused by Tenant and any such additional costs and
expenses shall be paid by Tenant to Landlord in accordance with the provisions
of this Paragraph 3 and Exhibit C-1 to the First Amendment.

 

(v)              Tenant hereby indemnifies and
agrees to hold Landlord, its agents, employees and contractors harmless from
and against any and all liabilities, claims, demands, allegations, assessments,
losses, costs, damages and expenses of any nature whatsoever (including, but
without limiting the generality of the foregoing, attorneys’ fees and court
costs) that Landlord may incur, sustain or suffer or which may be asserted or
charged against Landlord arising out of, pertaining to or in any way connected
with Landlord’s completion of the Tenant Improvements other than any such
liabilities, claims, demands,  losses,
costs, damages or expenses arising out of injury to or death of any person or
damage to any property as a result of the negligence or willful misconduct of
Landlord or its agents, employees or contractors (individually a “Claim” or
collectively “Claims”).  Tenant
acknowledges that Landlord may discover, incur or suffer from Claims which were
unknown or unanticipated as of the date of this Lease and that Tenant is
assuming 

 

4

 

the risk of such unknown
and unanticipated Claims and agrees that this paragraph applies to such unknown
and unanticipated Claims.

 

d.             Notwithstanding anything in this
Paragraph 4 to the contrary, Landlord and Tenant hereby acknowledge and agree
that the Tenant Improvements to the First Amendment Expansion Area were
substantially completed and all costs and expenses therefor were paid in full
in accordance with Paragraph 6 of the First Amendment and Exhibit C-1
thereto.

 

5.             Paragraph 10.        Default by Tenant.  Landlord’s Remedies.  Effective as of the Effective Date, Paragraph
10 of the Lease shall be amended as follows:

 

a.             The
first (1st) sentence of subparagraph 10(a)(i) shall be deleted in its entirety
and the following new sentence shall be inserted in lieu thereof:

 

“The
Rent or any other sum of money due of Tenant hereunder is not paid within ten
(10) days of the date notice of such late payment is received by Tenant;
provided, however, if more that two (2) payments due of Tenant hereunder in any
one (1) calendar year are not made until after notice of such late payment is received
by Tenant, then it shall be an event of default hereunder by Tenant if any
subsequent payment due of Tenant hereunder in the same calendar year is not
made within ten (10) days of the date when due.”

 

b.             The
second (2nd) sentence of subparagraph 10(b)(i) shall be deleted in
its entirety and the following new sentence shall be inserted in lieu thereof:

 

“If Tenant shall fail to do so, Landlord may, without
further notice and without prejudice to any other remedy Landlord may have,
enter upon the Premises and expel or remove Tenant and Tenant’s effects in
accordance with the dispossessory procedures set forth in O.C.G.A. §§ 44-7-50 et
seq.”

 

c.             The
first (1st) sentence of subparagraph 10(b)(iii) shall be deleted in its
entirety and the following new sentence shall be inserted in lieu thereof:

 

“Dispossess
Tenant in accordance with the dispossessory procedures set forth in O.C.G.A. §§
44-7-50 et seq.”

 

d.             Subparagraph
10(c) shall be deleted in its entirety and the following new subparagraph 10(c)
shall be inserted in lieu thereof:

 

“Notwithstanding
anything in this Lease to the contrary, neither Landlord nor Tenant shall be
liable to the other for any indirect, consequential, exemplary or punitive
damages resulting from its default under this Lease, except in the event of a
holdover by Tenant; provided, however, that nothing in this subparagraph (c)
shall limit either Landlord’s or Tenant’s right, subject to the other
provisions of this Lease, to collect compensatory 

 

5

 

damages
and costs from the other as a result of a default by the other party under this
Lease.”

 

6.             Paragraph 11.  Assignment
and Subletting.  Effective as of the
Effective Date, Paragraph 11 of the Lease shall be amended as follows:

 

a.                 The first (1st) sentence of subparagraph 11(a)
shall be deleted in its entirety and the following new sentence shall be
inserted in lieu thereof:

 

“Tenant shall not sublet
any part of the Premises, nor assign this Lease or any  interest herein, nor, once any such sublet
and assignment is consented to by
Landlord, amend or modify the terms of such sublet or assignment, without the
prior consent of Landlord, which consent shall not be unreasonably withheld or
delayed.”

 

b.                 Subparagraph
11(c) shall be deleted in its entirety and the following subparagraph 11(c) is
inserted in lieu thereof:

 

“(c)         Tenant shall have the right to assign
the lease or sublet the Premises, or any part thereof, without Landlord’s
consent, but subject to Landlord’s right to notice and prohibition contained
herein, to any corporation which controls,
is controlled by, or is under common control with Tenant, or to any corporation
resulting from a merger or consolidation transaction with Tenant, or to any
corporation which acquires all or substantially all of the assets of Tenant
(any one of such entities being hereinafter referred to as an “Affiliate”),
provided that (i) the tangible net worth of the Affiliate is equal to or
greater than the greater of Tenant’s tangible net worth on the date of this
Lease and Tenant’s tangible net worth immediately prior to the effective date
of the assignment or sublease, (ii) in the event of a sublease or if Tenant
remains in existence as a separate legal entity following consummation of the
assignment, it shall not be released from liability under this Lease, (iii)
Tenant shall give written notice  to
Landlord of the proposed assignment or sublease reasonably in advance of the
consummation thereof and (iv) in the event of an assignment, the Affiliate
shall unconditionally assume in a writing reasonably acceptable to Landlord all
of Tenant’s obligations under the Lease effective upon the consummation of the
assignment.  As used in the immediately
preceding sentence, the term “control” means, with respect to a corporation,
the right to the exercise, directly or indirectly, of more than forty percent
(40%) of the voting rights attributable to the shares of the controlled
corporation, and, with respect to any entity that is not a corporation, the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of the controlled entity.
Notwithstanding the foregoing, any such sublease or assignment must not have
been entered into, in whole or in part, as a subterfuge to avoid the
obligations and restrictions set forth in this Lease.  Furthermore, if 

 

6

 

Landlord reasonably
determines that the proposed sublessee or occupant is engaged in a business
which would materially interfere with the operation of the Property or that
permitting the subletting or occupancy would cause a violation by Landlord of
its obligations under any lease covering a portion of the Property, Landlord
shall have the right to prohibit such arrangement based upon the issue of the
business of the proposed sublessee or occupant or the compatibility of the
proposed sublessee or occupant with the businesses in the Building.  No subletting permitted by this Paragraph 11
shall relieve Tenant of its primary liability under this Lease.”

 

7.             Indemnification
and Hold Harmless.  On and after the
Effective Date, the Lease is hereby amended by deleting subparagraph 15(a) of
the Office Lease in its entirety, and by inserting the following subparagraph
15(a) in lieu thereof:

 

(a)           Tenant hereby indemnifies and holds
Landlord harmless from and against any injury, expense, damage, liability or
claim, imposed on Landlord by any person whomsoever due to damage to the
Premises, claims for injuries to the person or property of any other tenant of
the Building or of any other person in or about the Building for any purpose
whatsoever, or administrative or criminal action by a governmental authority,
provided that such injury, expense, damage, liability or claim results either directly
or indirectly from the act, omission, negligence, misconduct or breach of any
provisions of this Lease by Tenant, the agents, servants, or employees of
Tenant, or any other person entering upon the Premises under express or implied
invitation or consent of Tenant.  Tenant
further agrees to reimburse Landlord for any costs or expenses, including, but
not limited to, court costs and reasonable attorney’s fees, which Landlord may
incur in investigating, handling or litigating any such claim or any action by
a governmental authority.

 

8.             Tenant’s Insurance.  On and after the Effective Date, the Lease
is hereby amended by deleting Paragraph 16 (Tenant’s Insurance) of the Office
Lease in its entirety, and by inserting the following Paragraph 16 in lieu
thereof:

 

“16.         TENANT’S INSURANCE.

 

Tenant
shall carry during the Term (and any other period during which Tenant is in
possession of the Premises, with all premiums paid prior to the due date at
Tenant’s sole expense) (i) all risk coverage insurance insuring Tenant’s
interest in its improvements to the Premises and any and all furniture,
equipment, supplies, contents and other property owned, leased, held or
possessed by Tenant and contained therein, such insurance coverage to be in an
amount equal to the full insurable value of such improvements and property, as
such may increase from time to time, (ii) worker’s compensation and
employer’s liability insurance as required by applicable 

 

7

 

law, (iii) commercial general
liability coverage for injury to or death of a person or persons and for damage
to property occasioned by or arising out of any construction work being done on
the Premises, or arising out of the condition, use, or occupancy of the
Premises, or other portions of the Building or Property, the limits of such
policy or policies to be in amounts not less than One Million Dollars
($1,000,000) combined single limit for bodily injury and property damage per
occurrence, plus excess coverage of not less than Five Million Dollars
($5,000,000) combined single limit for bodily injury and property damage per
occurrence, (iv) insurance against thefts within the Premises, the Building or
any project within which the Building is located, and (v) business interruption
insurance with a limit of liability of not less than One Million Dollars
($1,000,000).  Tenant shall also
maintain and provide such other required evidence to Landlord of any other form
of insurance which Landlord, acting reasonably, requires from time to time in
form, in amounts, and for risks against which a reasonable tenant would
insure.  Landlord and Tenant shall each
have included in all policies of insurance respectively obtained by them with
respect to the Building or Premises a waiver by the insurer of all right of
subrogation against the other in connection with any loss or damage insured
against.  To the full extent permitted
by law, Landlord and Tenant each waives all right of recovery against the
other, and agrees to release the other from liability for loss or damage to the
extent such loss or damage is covered by valid and collectible insurance in
effect at the time of such loss or damage; provided, however, that the
foregoing release by each party is conditioned upon the other party’s carrying
insurance with the above described waiver of subrogation, and if such coverage
is not obtained or maintained by either party, then the other party’s foregoing
release shall be deemed to be rescinded until such waiver is either obtained or
reinstated.  All said insurance policies
shall be carried with companies licensed to do business in the State of Georgia
reasonably satisfactory to Landlord and rated in Best’s Insurance Guide, or any
successor thereto (or, if there be none, an organization having a national
reputation) as having a general policyholder rating of “A-” and a financial
rating of at least “X.”  All such
policies shall be noncancellable except after twenty (20) days’ written notice
to Landlord.  Each policy shall name as
additional insureds Landlord, Landlord’s Property Manager, Landlord’s mortgagee
(if any), parties having a direct or indirect ownership interest in or
contractual relationship with Landlord, and any other person reasonably
designated by Landlord as having a direct or indirect financial interest in or
contractual relationship respecting the Building or Premises and (ii) provide
that it is primary to, and not contributing with, any policy carried by
Landlord, Landlord’s Property Manager, Landlord’s mortgagee (if any), parties
having a direct or indirect ownership interest in or contractual relationship
with Landlord, or other reasonably designated person covering the same
loss.  At Landlord’s request, duly
executed certificates of such insurance shall be delivered to Landlord prior to
the Commencement Date and at least thirty (30) days prior to the expiration of
each respective policy 

 

8

 

term.”

 

9.             Paragraph 28.  Parking Arrangements.  Effective
as of the Effective Date, Paragraph 28 of the Lease is hereby amended by adding
the following language at the end thereof:

 

“Notwithstanding the
foregoing, Landlord shall provide one (1) reserved monthly parking space for
use by Tenant in the Concourse V and VI garage (hereinafter referred to as the
“Garage”); provided that Landlord shall have the right, at any time, in
Landlord’s sole discretion, to relocate such space to a mutually agreed upon
location within the Garage.  Such
parking space shall be provided to Tenant so long as said parking space is
available without conflict with the requirements of present agreements with any
tenant of the Building.  Subject to the
foregoing, such parking space shall be provided for the Extension Period at no
additional charge to Tenant. Tenant shall abide by and comply with any and all
regulations promulgated by Landlord with respect to such reserved parking
space.  Landlord shall have no
obligations to enforce the reservation of such reserved parking space.  The parking spaces described in this
Paragraph 28, and Tenant’s rights thereto, shall not be assignable or
transferable by Tenant.”

 

10.           Paragraph 30.  Right to
Relocate.  Effective as of the
Effective Date, Paragraph 30 of the Lease is hereby amended by adding the
following language at the end thereof:

 

“Notwithstanding anything
to the contrary in the Lease, effective as of the Effective Date, Landlord
agrees that (x) it shall have no rights to relocate Tenant from the portion of
the Premises located on the thirty-second (32nd) floor of the
Building during the Extension Period and (y) in the event of any relocation of
Tenant’s space located on the twenty-eighth (28th) floor of the Building,
Landlord shall use its reasonable efforts to relocate Tenant to space in the
Building serviced by the high-rise elevator banks .”

 

11.           Paragraph 31.  Late
Payments.  Effective as of the
Effective Date, Paragraph 31 of the Lease is hereby amended by deleting from
the 1st line thereof the words and symbols “within five (5) days”
and inserting the following words and symbols in lieu thereof,-”within ten (10)
days”

 

12.           Right of First Negotiation.  Landlord grants Tenant a right of first
negotiation (the “First Negotiation Right”) to lease additional space
contiguous to the Premises in accordance with the following:

 

a.                       The space that is subject
to such First Negotiation Right shall be all or any portion of the space
located on the twenty-eighth (28th) and thirty-first (31st) floors of the
Building that is contiguous to the Premises (the “First Negotiation Space”).

 

9

 

b.                      Except as provided in this
Paragraph 12, if Landlord makes or receives a written proposal to lease all or
any portion of the First Negotiation Space, Landlord shall notify Tenant in
writing (such notice being hereinafter called the “Offer Notice”) of the
availability of such space.  Such Offer
Notice shall specifically describe the portion of the First Negotiation Space
that is the subject of such proposal. 
The Offer Notice shall also constitute an offer by Landlord to lease the
space described in the Offer Notice to Tenant in accordance with the terms of
this Paragraph 12. Tenant shall have ten (10) days after its receipt of such
Offer Notice to accept such offer pursuant to this First Negotiation Right and
to lease all of such portion of the First Negotiation Space described in the
Offer Notice from Landlord in accordance with the terms of this Paragraph 12.

 

c.                       Acceptance by Tenant of
the offer set forth in the Offer Notice shall be deemed effective only if such
acceptance is given to Landlord in a written notice of acceptance (the
“Acceptance Notice”) specifically referring to the Offer Notice to which it
relates, received by Landlord within the ten (10) day period prescribed above
for such acceptance.  To be effective,
such Acceptance Notice must accept the offer set forth in the subject Offer
Notice with respect to all of the portion of the First Negotiation Space
described in such Offer Notice.

 

d.                      If Tenant duly and timely
delivers to Landlord its Acceptance Notice within such ten (10) day period in
accordance with this Paragraph 12 and such Acceptance Notice is delivered to
Landlord on or before June 1, 2005, then the following terms shall apply:

 

(i)   The term of the lease of the First
Negotiation Space shall commence upon the earlier to occur of (a) Tenant’s
occupancy of the First Negotiation Space for the purpose of conducting business
therefrom, (b) substantial completion of the tenant improvements with respect
to such space or (c) sixty (60) days after Landlord’s receipt of the Acceptance
Notice (such earlier date being hereinafter referred to as the “Expansion
Commencement Date”);

 

(ii)  Base Rental, Additional Rental, and all other
sums and charges imposed under this Lease with respect to the First Negotiation
Space shall commence to accrue with respect to the First Negotiation Space on
the Expansion Commencement Date;

 

(iii) The First Negotiation Space shall become part
of the Premises and shall be leased to Tenant for the remaining portion of the
term of the lease of the Premises upon the terms and conditions (including,
without limitation, the same Base Rental rate per square foot of Rentable Area
and the same Base Operating Expenses and Base Real Estate Taxes) as then and
thereafter in effect from time to time under this Lease for the balance of the
Premises, except as otherwise provided in this subparagraph d.;

 

(iv) Tenant improvements shall be designed and
installed in accordance with the same procedures and conditions as are set
forth in Exhibit C hereto; except 

 

10

 

that Refurbishment
Allowance per square foot of Rentable Area with respect to the First
Negotiation Space shall be equal to the product of $20.00 and a fraction, the
numerator of which is the number of full calendar months, plus the fraction of
any partial calendar months, remaining in the initial term of this Lease,
measured from the Expansion Commencement Date, and the denominator of which is
89;

 

(v)  Tenant’s Percentage Share shall be adjusted to
reflect Tenant’s lease of the First Negotiation Space; and

 

(vi) Landlord and Tenant agree to enter into an
amendment to this  Lease to document the
exercise of the Expansion Option within thirty (30) days after Landlord’s
receipt of the Option Exercise Notice.

 

e.                       If Tenant duly and timely
delivers to Landlord its Acceptance Notice within such ten (10) day period in
accordance with this Paragraph 12 and such Acceptance Notice is delivered to
Landlord after June 1, 2005, then the following terms shall apply:

 

(i)   The term of the lease of the First
Negotiation Space shall commence upon the “Expansion Commencement Date”;

 

(ii)  Base Rental, Additional Rental, and all other
sums and charges imposed under this Lease with respect to the First Negotiation
Space shall commence to accrue with respect to the First Negotiation Space on
the Expansion Commencement Date;

 

(iii) Subject to the other terms of this Paragraph
12, the portion of the First Negotiation Space leased by Tenant pursuant to an
Acceptance Notice shall become part of the Premises and shall be leased to
Tenant pursuant to the terms and conditions of the Lease as applicable to the
Premises, subject to revisions thereto applicable only to the portion of the
First Negotiation Space to be leased by Tenant to reflect Prevailing Market
Terms and Conditions. “Prevailing Market Terms and Conditions” shall mean the
then prevailing market economic terms and conditions (including, without
limitation, base rent, rent escalation, tenant improvement allowance, length of
noncancellable lease term, and other similar matters) for leases comparable to
the lease of the Premises for “second generation” space in the Building
comparable to the space to be leased by Tenant pursuant to its Acceptance
Notice, taking into account the creditworthiness of Tenant.  The Prevailing Market Terms and Conditions
shall be determined between Landlord and Tenant by mutual agreement; however,
if Landlord and Tenant cannot agree, the Prevailing Market Terms and Conditions
shall be established in the manner specified in subparagraph (iv) hereof.

 

(iv) Within five (5) days after Landlord has
received Tenant’s Acceptance Notice, Landlord shall advise Tenant, in writing,
of its determination of the Prevailing Market Terms and Conditions.  Within five (5) days after Tenant’s 

 

11

 

receipt of
Landlord’s determination of the Prevailing Market Terms and Conditions, Tenant
shall advise Landlord, in writing, whether or not Tenant accepts or rejects the
Prevailing Market Terms and Conditions specified by Landlord.  Failure to accept or reject the Prevailing
Market Terms and Conditions specified by Landlord shall be deemed acceptance by
Tenant.  If Tenant by notice timely
given rejects the Prevailing Market Terms and Conditions determined by
Landlord, Tenant shall specify in such notice either (x) Tenant’s election to
withdraw the Acceptance Notice, in which event the exercise of such Acceptance
Notice shall be nullified and this First Negotiation Right shall be terminated
with respect to the subject portion of the First Negotiation Space, or (y)
Tenant’s election to submit the determination of  Prevailing Market Terms and Conditions to the procedure outlined
below and Tenant’s selection of a real estate appraiser, who shall act on
Tenant’s behalf in determining the Prevailing Market Terms and Conditions.  Failure to make such election in such
response shall be deemed an election of clause (x) of the immediately preceding
sentence.  Within twenty (20) days after
Landlord’s receipt of Tenant’s selection of a real estate appraiser, Landlord,
by written notice to Tenant, shall designate a real estate appraiser, who shall
act on Landlord’s behalf in the determination of the Prevailing Market Terms
and Conditions.  Within twenty (20) days
of the selection of Landlord’s appraiser, the two appraisers shall render a
joint written determination of the Prevailing Market Terms and Conditions.  If the two appraisers are unable to agree
upon a joint written determination within said twenty (20) day period, each
appraiser shall render his or her own written determination and the two
appraisers shall select a third appraiser within such twenty (20) day period
(or, if such appraisers cannot be agreed upon by the appraisers, the third
appraiser shall be selected by lot from a list of not less than five (5)
appraisers recommended by the President of the Georgia Chapter of the National
Association of Industrial and Office Properties).  Within twenty (20) days after the appointment of the third
appraiser, the third appraiser shall select one of the determinations of the
two appraisers originally selected, without modification or
qualification.  All appraisers selected
in accordance with this subparagraph shall have at least ten (10) years prior
experience in the metropolitan Atlanta commercial leasing market and shall be
members of one or more of the National Association of Industrial and Office
Properties, the American Institute of Real Estate Appraisers, the Atlanta Board
of Realtors or similar professional organization.  If either Landlord or Tenant fails or refuses to select an
appraiser, the other appraiser shall alone determine the Prevailing Market
Terms and Conditions.  Landlord and
Tenant agree that they shall be bound by the determination of Prevailing Market
Terms and Conditions pursuant to this subparagraph for the lease of the subject
space.  Landlord shall bear the fees and
expenses of its appraiser; Tenant shall bear the fees and expenses of its
appraiser; and Landlord and Tenant shall share equally the fees and expenses of
the third appraiser, if any.

 

12

 

f.                       If Tenant does not duly
and timely deliver to Landlord its Acceptance Notice within the aforesaid ten
(10) day period in accordance with this Paragraph 12, then Tenant shall be
deemed to have elected not to accept Landlords’ offer set forth in the subject
Offer Notice, and Tenant’s rights with respect to the portion of the First
Negotiation Space described in such Offer Notice shall terminate and be of no
further force or effect, and Landlord shall be free to enter into a lease with
a prospective tenant with respect to all or any part of that portion of the
First Negotiation Space that was the subject of such Offer Notice, plus
additional space leased in conjunction therewith (including, without
limitation, an additional portion of the First Negotiation Space, provided such
additional portion of the First Negotiation Space does not have more than
thirty percent (30%) of the Rentable Area of the portion of the First
Negotiation Space that was offered to Tenant pursuant to the Offer Notice)

 

g.                      Landlord shall have the
right to enter into a lease of all or a portion of the First Negotiation Space
with a tenant or subtenant other than Tenant occupying such space on the date
such space is so leased by Landlord without first being required to submit an
Offer Notice to Tenant; and such lease with any such occupant shall be superior
to, but shall not have the effect of terminating, Tenant’s rights under this
Paragraph 12.

 

h.                      Notwithstanding anything
in this Paragraph 12 to the contrary, Tenant shall have no right to exercise
any right or option under this Paragraph 12, nor shall Landlord have any
obligation to submit an Offer Notice to Tenant with respect to any portion of
the First Negotiation Space before entering into a third party lease with
respect thereto, or to enter into any lease of any portion of the First
Negotiation Space with Tenant, at any time during which either (i) an
Event of Default exists with respect to Tenant under this Lease, (ii) this
Lease is not in full force and effect, 
(iii) Tenant has assigned this Lease or has entered into a sublease with
respect to all or any portion of the Premises, or (iv) Tenant is in default
under any other written agreement with Landlord.

 

13.           Deleted Provisions.  Effective as of the Effective Date, the
Lease is hereby amended by deleting the following provisions in their entirety:

 

a.             Special
Stipulation No. 2 of the Office Lease (“Renewal of Lease”)

 

b.             Paragraph
6 of the First Amendment (“Tenant Improvements”)

 

14.           Brokerage Commissions.  Tenant
represents and warrants that it has not retained or consulted with a broker,
agent or commission salesperson with respect to the negotiation of this Second
Amendment, and that no commissions, fees or compensation of any kind are due
and payable in connection herewith to any broker, agent or commission
salesperson acting for or on behalf of Tenant. Tenant agrees to indemnify and
hold Landlord harmless from all loss, cost and damage suffered or incurred by
Landlord as the result of any breach by Tenant of the representation and
warranty contained in this Paragraph 14. 
Except for Cousins 

 

13

 

Properties Services LP,
no broker, agent or commission salesperson has represented Landlord in the
negotiation of this Second Amendment, and Landlord has agreed to compensate
Cousins Properties Services LP for its services in accordance with the terms of
separate commission agreement between Landlord and Cousins Properties Services
LP.

 

15.           No Further Amendments; Ratification.  Except as expressly amended
herein, all terms and conditions of the Lease remain unamended in full force
and effect and are ratified and confirmed by Landlord and Tenant.  In the event of any conflict between the
terms and conditions of this Second Amendment and any of the terms and
conditions of the Lease, the terms and conditions of this Second Amendment
shall control.

 

16.           Basic Lease Information. The Basic Lease Information attached to this
Second Amendment as Exhibit A-2 is hereby inserted herein to state certain of
the terms of the Lease with respect to the Premises for the Extension Period.

 

IN WITNESS WHEREOF,
Landlord and Tenant have caused this Second Amendment to be executed under
seal, on the day and year first above written.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  485 PROPERTIES, LLC, a
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Harry St. Clair

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Harry St. Clair

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  	
   

  
	
  Date executed by

  	
   

  	
   

  
	
  Landlord:

  	
  6/26/03

  	
   

  	
   

  	
   

  
									

 

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

14

 

[SIGNATURE PAGE TO
SECOND AMENDMENT TO LEASE AGREEMENT]

 

	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EBIX.COM, INC., a Delaware corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James W.
  Satterfield, EVP

  	
  (SEAL)

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  James W. Satterfield,
  EVP

  	
   

  	
   

  
	
   

  	
   

  	
  Type Name of Signatory

  	
   

  
	
   

  	
   

  	
   

  
	
  Date executed by

  	
  By:

  	
   

  	
  (SEAL)

  	
   

  
	
  Tenant:

  	
  June 3, 2003

  	
   

  	
   

  	
  Authorized Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Type Name of Signatory

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (CORPORATE SEAL)

  
								

 

*Note:    If Tenant is a corporation, two authorized
corporate officers must execute this Second Amendment in their appropriate
capacities for Tenant, affixing the corporate seal.

 

By the execution and
delivery of this Second Amendment, Tenant has made and shall be deemed to have
made a continuous and irrevocable offer to Lease the Premises, on the terms
contained in this Second Amendment, subject only to acceptance by Landlord (as
evidenced by Landlord’s signature hereon), which Landlord may accept in its
sole and absolute discretion.

 

Tenant’s Federal Employer
Identification
Number:                    

 

15

 

Exhibit A-2

 

CORPORATE CENTER V

BASIC LEASE INFORMATION

 

	
  Lease Date

  	
   

  	
  Office Lease, dated
  October 20, 1998 (amended by First Amendment, dated February 10, 2000,
  amended by Second Amendment, dated June 3, 2003)

  
	
   

  	
   

  	
   

  
	
  Landlord

  	
   

  	
  485 PROPERTIES, LLC, a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
  Tenant

  	
   

  	
  EBIX.COM, INC., a
  Delaware corporation

  
	
   

  	
   

  	
   

  
	
  Building Name

  	
   

  	
  Corporate Center V

  
	
   

  	
   

  	
   

  
	
  Building Address

  	
   

  	
  Five Concourse Parkway 

  Atlanta, Georgia 30328

  
	
   

  	
   

  	
   

  
	
  Premises

  	
   

  	
  Suite 2850 and 3200

  
	
   

  	
   

  	
   

  
	
  Lease Term

  	
   

  	
  Seven (7) years and
  five (5) months*

  
	
   

  	
   

  	
   

  
	
  Effective Date

  	
   

  	
  June 1, 2003

  
	
   

  	
   

  	
   

  
	
  Expiration Date

  	
   

  	
  October 31, 2010

  
	
   

  	
   

  	
   

  
	
  Total Building 

  Rentable Area

  	
   

  	
  687,107 square feet

  
	
   

  	
   

  	
   

  
	
  Rentable Area

  	
   

  	
  9,801 square feet

  
	
   

  	
   

  	
   

  
	
  Tenant’s Share

  	
   

  	
  1.5%

  
	
   

  	
   

  	
   

  

 

	
  Annual Rental

  	
  06/01/03-05/31/04

  	
   

  	
  $

  	
  20.50

  	
   

  
	
  (per rentable square

  	
  06/01/04-05/31/05

  	
   

  	
  $

  	
  21.01

  	
   

  
	
  foot per annum )

  	
  06/01/05-05/31/06

  	
   

  	
  $

  	
  21.54

  	
   

  
	
   

  	
  06/01/06-05/31/07

  	
   

  	
  $

  	
  22.07

  	
   

  
	
   

  	
  06/01/07-05/31/08

  	
   

  	
  $

  	
  22.63

  	
   

  
	
   

  	
  06/01/08-05/31/09

  	
   

  	
  $

  	
  23.19

  	
   

  
	
   

  	
  06/01/09-05/31/10

  	
   

  	
  $

  	
  23.77

  	
   

  
	
   

  	
  06/01/10-10/31/10

  	
   

  	
  $

  	
  24.37

  	
   

  

 

1

 

	
  Operating Costs

  Base Year

  	
   

  	
  Calendar year 2003

  

 

*
Note:   This Basic Lease Information is
only for the portion of the Lease term commencing on the Effective Date.  It does not address the portion of the Lease
term falling prior to that date.

 

	
  Security Deposit

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  
	
  Landlord’s Address

  	
   

  	
  For Notices:

  
	
   

  	
   

  	
  485 PROPERTIES, LLC

  
	
   

  	
   

  	
  c/o Cousins Properties
  Services LP

  
	
   

  	
   

  	
  Five Concourse Parkway

  
	
   

  	
   

  	
  Suite
  1200

  
	
   

  	
   

  	
  Atlanta, Georgia
  30328-6111

  
	
   

  	
   

  	
  Attn:       Stacey
  Milam

  
	
   

  	
   

  	
   

  
	
  Tenant’s Address

  	
   

  	
  For Notices:

  
	
   

  	
   

  	
  EBIX.COM, INC.

  
	
   

  	
   

  	
  Five Concourse Parkway

  
	
   

  	
   

  	
  Suite 2850

  
	
   

  	
   

  	
  Atlanta, Georgia 30328

  
	
   

  	
   

  	
  Attn:       Jim
  Satterfield

  
	
   

  	
   

  	
   

  
	
  Tenant’s
  Broker

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  
	
  Landlord’s Allowance

  	
   

  	
  $196,020.00 (one-time
  only)

  

 

2Exhibit
10.3

 

DIVESTITURE AND SOFTWARE LICENSE AGREEMENT

 

This Divestiture and Software License
Agreement (this “Agreement”) is
entered into as of this 7th day of April, 2003 between
MSC.Software Corporation, a Delaware corporation having a principal place of
business at 2 MacArthur Place, Santa Ana, California 92707 (“MSC”) and Unigraphics Solutions, Inc., a
wholly owned subsidiary of Electronic Data Systems, Inc., a Delaware
corporation, having a place of business at 5400 Legacy Drive, Plano, Texas
75024 (“UGS”).

 

RECITALS

 

A.                                    The parties have been involved in a
proceeding before the Federal Trade Commission entitled In the Matter of MSC.Software Corporation,
which relates to MSC’s proprietary version of Nastran finite element analysis
software called “MSC.Nastran” (as defined below).

 

B.                                    On October 29, 2002, the Federal Trade
Commission issued a “Consent Order” In the
Matter of MSC.Software Corporation (attached as Exhibit 1 hereto).

 

C.                                    Pursuant to the terms of the Consent Order,
MSC desires to provide UGS with certain “Licensed Rights” (as defined below)
and supporting documentation relating to MSC.Nastran, as set forth in this
Agreement.

 

D.                                    UGS desires to purchase the Licensed Rights
and obtain such other information and documentation set forth in this Agreement,
subject to the terms and conditions herein.

 

AGREEMENT

 

NOW THEREFORE, in consideration of the mutual agreements
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

ARTICLE I:  DEFINITIONS

 

1.1                               “Agreement Containing
Consent Order” means the
agreement between MSC and the Commission setting forth the agreement of such
parties regarding the Consent Order and the procedures pursuant to which the
Consent Order will be finalized.

 

1.2                               “Commission” means the Federal Trade Commission.

 

1.3                               “Complimentary Software” means any Software intended to be used in
conjunction with Nastran, including but not limited to pre- and post-processors
and meshers.

 

1.4                               “Consent Order” means the final Decision and Order issued
by the Commission In the Matter of
MSC.Software Corporation, Docket No. 9299, dated October 29,
2002 (attached as Exhibit 1 hereto and incorporated by reference herein).

 

1.5                               “CSAR” means the entity formerly known as
Computerized Structural Analysis and Research Corp., a California corporation,
which was acquired by MSC on or about November 4, 1999.

 

1.6                               “Derivative Works” shall have the meaning set forth in the
United States Copyright Act (17 U.S.C. §101 et
seq.).

 

1

 

1.7                               “Distribution Partner” means a Person that UGS enters into an
agreement with for the purpose of distributing and/or marketing products that
incorporate and/or are covered by the Licensed Rights granted to UGS pursuant
to the terms and conditions of this Agreement.

 

1.8                               “Divestiture Fee” means the fees paid by UGS pursuant to the
payment terms set forth in Schedule A hereto [*].

 

1.9                               “Effective Date” means the date this Agreement, having been
duly executed by an authorized representative of each party, is finally
approved by the Commission.

 

1.10                        “End-User” means a Person who acquires directly from
UGS, or indirectly through a Distribution Partner, a license to use the
Licensed Rights.

 

1.11                        “Intellectual Property” means Software, inventions, technology,
formulations, specifications, patents, patent applications, trade secrets,
copyrights, know-how, research materials, technical information, designs,
drawings, manufacturing information, integration information, and testing and
quality control data.  For the purposes
of this Agreement, the definition of “Intellectual Property” does not encompass
trademarks, servicemarks or trade names, each of which is covered by the
definition of “Licensed Marks” set forth in Section 1.13, below.

 

1.12                        “License” has that meaning given in the Consent
Order.

 

1.13                        “Licensed Marks” means those trademarks, servicemarks and/or
trade names of the Licensed Rights owned by MSC.  MSC represents that a complete and accurate list of these
Licensed Marks as of February 1, 2003 is set forth in Schedule D hereto
(which shall be amended by the parties to reflect those trademarks,
servicemarks and/or trade names used by or on behalf of MSC in connection with
the Licensed Rights during the term of this Agreement).

 

1.14                        “Licensed Rights” has that meaning given in the Consent Order,
a copy of which definition is set forth in Schedule B.

 

1.15                        “MSC.Nastran” has that meaning given in the Consent Order,
which is “the proprietary version of Nastran developed, distributed or licensed
by MSC, excluding the following MSC products: MSC.Nastran for Windows,
MSC.Dytran, MSC Working Model Products, MSC.FEA, MSC.AFEA, MSC.AKUSMOD,
MSC.Construct, MSC.Patran, MSC.SuperModel, MSC.FlightLoads, MSC.Ultima, the MSC
V5i family, MSC.Fatigue and MSC.Actran.” 
Additionally, MSC.Nastran shall mean (i) MSC.Nastran v.2001, that being
the version most current as of August 14, 2002, the date the agreement containing
the Consent Order was accepted for public comment by the Commission, and in
addition shall include (ii) MSC.Nastran 2001 v.9 (“2001 v.9”) in the form it
exists as of April 1, 2003, and (iii) any subsequent Minor Commercial
Version of MSC.Nastran v.2001 released by MSC during the period and pursuant to
the circumstances described in Schedule B. 
Notwithstanding anything to the contrary with respect to all items
described in (i)-(iii) UGS shall have the same License, Licensed Rights and
other rights as it is to receive with respect to the Licensed Rights hereunder
and such items shall also be considered part of the Licensed Rights of
MSC.Nastran.  The software contained in
2001 v.9 and any subsequent Minor Commercial Version contains portions that are
not contained in the version of MSC.Nastran 2001 most current as of
August 14, 2002, and MSC is therefore not obligated to provide such
portions pursuant to the Consent Order.

 

* Information for which confidential treatment has been requested
pursuant to Rule 24(b)(2) of the Securities Exchange Act of 1934, as amended.

 

2

 

1.16                        “Nastran” has that meaning given in the Consent Order,
which is “the finite element analysis solver software first developed by the
U.S. National Aeronautics and Space Administration (“NASA”) during the 1960’s
to perform structural analysis for NASA projects, which was thereafter released
by NASA into the public domain to allow broader use and commercial
development.  The term includes not only
the version of the Nastran software that NASA has placed in the public domain,
but also the proprietary versions of the software developed and enhanced by
private parties based on the source code made available by NASA.”

 

1.17                        “Object Code” or “Executable
Code” means the fully-compiled version of a software program that
can be executed by a computer and used by an End-User without further
compilation.

 

1.18                        “Person” means any natural person, partnership,
corporation, company, association, trust, joint venture or other business or
legal entity, including any governmental agency.

 

1.19                        “Relating to” means in whole or in part constituting,
containing, concerning, discussing, describing, embodying, analyzing,
identifying, or stating.

 

1.20                        “Software” means any type of computer code, including,
but not limited to, Source Code, Object Code, executable programs, software
scripts, modules, add-ons, patches, library functions, object libraries, test
programs, test results, regression test software, interfaces with Complimentary
Software, enhancements, customizations, development tools, development
environments, and proprietary programming languages.

 

1.21                        “Source Code” means the human-readable version of a
software program that can be compiled into Object Code or Executable Code.

 

1.22                        “Third Party Software” means any of the Licensed Rights that are
licensed by a third party to MSC for inclusion in the Licensed Rights under
terms that would prevent MSC from conveying, licensing, sublicensing or
assigning such rights to UGS.  MSC
represents that a complete and accurate list of Third Party Software as of
February 1, 2003 is included in Schedule C hereto.

 

1.23                        “Trademark Usage
Guidelines” means the
requirements and quality control standards for the use of Licensed Marks (as
set forth in Schedule D hereto).

 

1.24                        “UAI” means the entity formerly known as Universal
Analytics, Inc., a California corporation, which was acquired by MSC on or
about June 24, 1999.

 

ARTICLE II:  GRANT

 

Subject to and in accordance with the terms
and conditions of this Agreement and contingent upon final approval of this
Agreement by the Commission, MSC grants to UGS the following licenses:

 

2.1                               License to Licensed Rights.  MSC
grants to UGS the following perpetual, worldwide, royalty-free, non-exclusive
license to use, market, sublicense, distribute the Licensed Rights and prepare
Derivative Works thereof, without restriction and without further remuneration
to MSC (including, without limitation, all rights set forth in Sections 2(a) –
2(e) of Schedule B, hereto):

 

2.1.1                     License to MSC.Nastran.  MSC
grants to UGS a perpetual, worldwide, royalty-free, non-exclusive license,
under all Intellectual Property and other property rights owned or

 

3

 

licensed by MSC relating to MSC.Nastran, to use, market, sublicense,
distribute and prepare Derivative Works without restriction and without further
remuneration to MSC.

 

2.1.2                     License to UAI Intellectual
Property.  MSC grants to UGS a perpetual, worldwide,
royalty-free, non-exclusive license, under all of MSC’s Intellectual Property
acquired by MSC as a result of the acquisition of UAI to use, market,
sublicense, distribute and prepare Derivative Works without restriction and
without further remuneration to MSC. 
The foregoing license shall include rights in and to any versions of
Nastran and any other computer software acquired by MSC as a result of the
Acquisition of UAI.

 

2.1.3                     License to CSAR
Intellectual Property.  MSC grants to UGS a perpetual, worldwide,
royalty-free, non-exclusive license, under all of MSC’s Intellectual Property
acquired by MSC as a result of the acquisition of CSAR to use, market,
sublicense, distribute and prepare Derivative Works without restriction and
without further remuneration to MSC. 
The foregoing license shall include rights in and to any versions of
Nastran and any other computer software acquired by MSC as a result of the
Acquisition of CSAR.

 

2.1.4                     Assignment and Sub-License. 
UGS shall have the right to assign and/or sub-license all or any part of
its rights under the License to the Licensed Rights to other persons without
limitation, including but not limited to the right to sub-license as UGS may
see fit for the purposes of establishing a system for the sale or distribution
of the Licensed Rights.  In addition,
UGS may assign or transfer all of its other rights hereunder, including any
rights subject to confidentiality, provided that any assignment or transfer by
UGS of any rights or obligations under this Agreement, other than the Licensed
Rights and Trademark License, shall be subject to the prior written consent of
such assignee to be bound by the applicable terms and conditions of this
Agreement (a copy of which consent shall be provided to MSC).

 

2.2                               Third Party Licenses.  If
any of MSC’s rights in any of the Licensed Rights are licensed from any third
party under terms that would prevent MSC from conveying, licensing,
sublicensing or assigning such rights to UGS, then MSC shall obtain, no later
than the Divestiture Date, the agreement of the third party to the licensing of
such rights to UGS, on substantially the same terms and conditions as to those
granted to MSC.  Once MSC satisfies this
obligation, it shall have no continuing obligation hereunder.

 

2.3                               Trademark License.  For
a period of three (3) years from the Divestiture Date, MSC grants to UGS a
limited, non-exclusive license to use the Licensed Marks for the sole purpose
of identifying UGS as a licensee of the Licensed Rights and/or as a source of
products that incorporate and/or are covered by such Licensed Rights (the
“Trademark License”).  UGS agrees that
at no time shall it state that it is an exclusive licensee of the Licensed
Rights.  All rights granted under this
Section 2.3 shall be subject to and conditioned upon UGS’s full compliance with
the Trademark Usage Guidelines (including the quality control provisions
thereof) set forth in Schedule D hereto. 
The foregoing license to the Licensed Marks shall be fully
sub-licensable, provided that any sub-licensees shall obtain only those rights
to use the Licensed Marks granted herein.

 

2.3.1                     Limitations.  Nothing
contained herein shall be interpreted or construed as: (i) limiting UGS’s right
to use “NASTRAN” or any other marks in the public domain or that are not
otherwise owned by or on behalf of MSC; (ii) providing UGS with any ownership
interest or right to use any trademarks servicemarks, or trade names owned by
or on behalf of MSC that do not qualify as Licensed Marks; or (iii) providing
UGS with any ownership rights in, to or under any of the Licensed Marks.

 

4

 

2.3.2                     Distribution Partners.  In
accordance with the terms set forth in Section 2.3, UGS may permit its
Distribution Partners to reproduce and disseminate copies of materials produced
by UGS.

 

2.4                               Customer Files.  MSC
grants to UGS the right and license to use one copy of all customer files and
information described in Section 4.1 of this Agreement.  All such customer files and information
shall be treated as Confidential Information pursuant to the obligations set
forth in Section 12, unless such customer specifically, and in writing, waives
the confidentiality restrictions or protections to be afforded such files.

 

2.5                               Ownership. 
With the exception of those non-exclusive rights granted under this
Agreement, all right, title and interest in, to and under the Licensed Rights
and Intellectual Property is and will remain solely and exclusively owned by
MSC.  Notwithstanding the foregoing and
without limiting UGS’ rights under this Agreement, UGS shall have the right,
pursuant to Section 11.2, to protect the Licensed Rights granted hereunder
including by taking action to protect such Licensed Rights against such parties
who undertake any unauthorized use of the Licensed Rights, regardless of whether
such unauthorized users are sublicensees of UGS.

 

2.6                               Rights to Derivative Works.  All
Derivative Works of the Licensed Rights created by or on behalf of UGS shall be
owned by UGS, provided however, that MSC shall at all times retain ownership of
the underlying MSC work upon which any such Derivative Work is based (but shall
not acquire any other rights with respect to such Derivative Works).

 

ARTICLE III:  TECHNICAL
ASSISTANCE, INFORMATION, PERSONNEL

 

3.1                               Technical Assistance.  For a period
of twelve (12) months following the date on which MSC has completed the
transfer of all Licensed Rights and other documents and information required to
be transferred to UGS under this Agreement, UGS shall have the right to obtain
from MSC, upon reasonable notice and at reasonable times and levels, such
personnel, information, technical assistance, advice and training to UGS as are
necessary or appropriate to effectuate the purposes of this Agreement and of
the Decision and Order; provided that MSC shall be under no obligation to
provide any such personnel, information, technical assistance, advice or
training related to the Intellectual Property acquired by MSC as a result of
the acquisitions of UAI and CSAR.  Such
assistance shall include reasonable consultation with knowledgeable employees
of MSC to ensure that the personnel of UGS are appropriately trained to enable
UGS to maintain, develop and support the Licensed Rights in a manner comparable
to MSC.

 

3.2                               Costs & Expenses.  MSC
shall charge, and UGS agrees to pay, within thirty (30) days of receipt of
invoice from MSC, MSC’s own direct, out-of-pocket expenses of labor and travel
in providing such assistance, not including overhead or administration
expenses.

 

ARTICLE IV:  CUSTOMER &
EMPLOYEE INFORMATION

 

4.1                               Customer, Marketing and
Sales Information.  Promptly following the execution of this
Agreement by both parties, assuming the Agreement has been approved by the
Commission, MSC will give to UGS a copy or copies, in such form or format as
may be necessary or appropriate to enable UGS to utilize them, of the
following: (i) all customer files acquired by MSC as a result of the
acquisitions of UAI and CSAR, and (ii) all marketing information, sales
training materials, and current (as of the Effective Date) customer lists,
customer contact information, and customer support log database contents
relating to customers who use MSC.Nastran in the United States.

 

5

 

4.2                               Employee Information. No later than one week after both parties
execute this Agreement, MSC shall provide UGS with the following lists, stating
each individual’s name, position, business address and business telephone
number, to the extent known by MSC:

 

4.2.1                     A list of all non-clerical employees of MSC
in the United States who are then currently involved in the design,
development, maintenance or customer support of MSC.Nastran;

 

4.2.2                     To the extent permissible under applicable
laws and with the permission of such individuals (which permission MSC shall in
good faith seek promptly after execution of the Agreement Containing Consent
Order), a list of all former non-clerical employees of MSC in the United States
who at any time since June 24, 1999, were involved in the design,
development, maintenance, customer support, sales or marketing of MSC.Nastran;
and

 

4.2.3                     To the extent permissible under applicable
laws and with the permission of such individuals (which permission MSC shall in
good faith seek promptly after execution of the Agreement Containing Consent
Order), a list of all former non-clerical employees of UAI and CSAR who were
employed by either of those firms at any time within two years prior to the
firms’ respective acquisitions by MSC.

 

4.3                               Personnel Files. 
Upon receiving reasonable notice from UGS, MSC shall make available to
UGS, for inspection during MSC’s normal business hours, the personnel files and
other documentation relating to the individuals identified pursuant to Section
4.2 to the extent permissible under applicable laws, with the permission of
such individuals (which permission MSC shall in good faith seek promptly after
execution of the Agreement containing Consent Order).

 

4.4                               Interviews.  For
a period of six (6) months following the date on which MSC has completed the
transfer of all Licensed Rights and other documents and information required to
be transferred to UGS under this Agreement, MSC shall provide UGS with an
opportunity to interview such individuals identified pursuant to Section 4.2.1
and negotiate employment with any of them and shall cooperate with UGS in
effecting transfer to UGS of any such employee who chooses to transfer to
UGS.  MSC shall not prevent, prohibit or
restrict or threaten to prevent, prohibit or restrict any such individual who
was employed by MSC from working for UGS and shall cooperate with UGS in
effecting transfer to UGS of any such employee who chooses to transfer to
UGS.    Notwithstanding the foregoing,
nothing contained herein shall require or obligate MSC to coerce, force or
otherwise induce any individual to partake in interviews with and/or transfer
to UGS hereunder against their will.

 

4.5                               Employee Non-Compete and
Confidentiality Restrictions.  MSC shall not offer any incentive to any
employees to decline employment with UGS or to accept other employment by MSC;
shall eliminate any non-compete restrictions that would otherwise prevent
employment of such employees by UGS; and shall eliminate any confidentiality
restrictions that would prevent employees who accept employment with UGS from
using or transferring to UGS any information or Intellectual Property that is
in the employee’s memory or that is part of the Licensed Rights.  MSC shall pay, for the benefit of any
employees transferring to UGS, all accrued bonuses, vested pensions and other
accrued benefits to the extent they have vested (pursuant to and in accordance
with the practices and policies of MSC) as of the date of any such
transfer.  UGS is not required to offer
employment to or hire employees of MSC.

 

4.6                               Protected Information. 
Notwithstanding the provisions of Section 4.5, to the extent provided by
contract, statutory law or common law, MSC is entitled to seek from UGS and/or
the former MSC

 

6

 

employee(s) any damages incurred as a result
of the transfer of MSC’s Intellectual Property other than the Intellectual
Property that is part of the Licensed Rights. 
However, MSC shall not seek damages from UGS or the employee related
solely to the employee’s use of information in the employee’s memory.  Nothing in this Agreement shall: (i)  restrict MSC from protecting or asserting in
good faith MSC’s attorney-client or work product privileges; (ii) prevent MSC
from withholding any information on grounds of such good faith assertion of
privilege; or (iii) prevent MSC from withholding any information on the basis
of a bona fide national security
interest.

 

ARTICLE V:  PAYMENT

 

5.1                               Divestiture Fee.  As
monetary consideration for the divestiture set forth in the Consent Order
(attached as Exhibit 1 hereto), UGS shall pay a Divestiture Fee to MSC as set
forth in Schedule A, hereto.

 

5.2                               Other Costs and Expenses. 
Within thirty (30) days of invoice by MSC, UGS shall pay MSC all of
MSC’s direct, out-of-pocket expenses incurred pursuant to Section 3.2, which MSC
is entitled to recover from UGS pursuant to the Consent Order or the terms of
this Agreement.

 

5.3                               [*]

 

ARTICLE VI:  DELIVERY &
ACCEPTANCE

 

6.1                               MSC agrees to deliver copies of the Licensed
Rights and other items required to be delivered to UGS under this Agreement in
any format as may be necessary or appropriate to enable UGS to utilize such
items, including but not limited to:

 

6.1.1                     Those portions of the Licensed Rights
comprised of Software shall be delivered in electronic format on compact disks
(CD) and

 

6.1.2                     Those portions of the Licensed Rights not
comprised of Software or other items required to be delivered to UGS under this
Agreement shall be delivered either in their original form, unless to do so
would be impractical, in which case MSC may deliver copies thereof in lieu of
originals.  To the extent an electronic
copy of any portion of the Licensed Rights exists, MSC agrees to deliver it to
UGS in such form.

 

6.2                               The Licensed Rights and other items required
to be delivered under this Agreement by MSC 
(including, without limitation, the Trademark Usage Guidelines set forth
in Schedule D hereto) shall be delivered by MSC and accepted by UGS pursuant to
the delivery and acceptance terms set forth in Schedule B hereto.

 

ARTICLE VII:  TERM & TERMINATION

 

7.1                               Term.  This
Agreement shall commence on the Effective Date and continue in full force and
effect until such time as both parties have fulfilled their obligations
hereunder.

 

* Information for which confidential treatment has been requested pursuant
to Rule 24(b)(2) of the Securities Exchange Act of 1934, as amended.

 

7

 

7.2                               Expiration.  The
following provisions shall survive expiration of this Agreement: Sections 2.1,
2.5, 2.6 and 4.6 as well as Articles 1 and VII – XIV. Expiration shall not
affect the Licensed Rights granted to UGS hereunder or its obligations related
thereto.  No expiration of this
Agreement shall relieve either party for any material breach of its obligations
and/or resulting liability hereunder. 
Following the Closing Date no party shall have the right to terminate
this Agreement.

 

ARTICLE VIII:  REPRESENTATIONS
& WARRANTIES

 

8.1                               Mutual Representations
& Warranties.  Each party represents and warrants to the
other party that:

 

8.1.1                     such party has been duly incorporated and is
validly existing under the laws under which such party is incorporated;

 

8.1.2                     such party has the full corporate right,
power and authority to enter into this Agreement and to perform the acts
required of it hereunder;

 

8.1.3                     the execution of this Agreement by such
party, and the performance by such party of its obligations and duties
hereunder, do not and will not violate any agreement to which such party is a
party or by which it is otherwise bound; and

 

8.1.4                     when executed and delivered by such party,
this Agreement will constitute the legal, valid and binding obligation of such
party, enforceable against such party in accordance with its terms.

 

8.2                               MSC Representations &
Warranties.  MSC hereby represents and warrants that, to
the best of its knowledge, no third party holds a claim (whether or not such
third party has asserted it as of the date of this Agreement) of: (i) ownership
or misappropriation with respect to MSC’s Intellectual Property hereunder; or
(ii) infringement with respect to the use of the Licensed Rights hereunder in
the same manner that MSC uses the Licensed Rights as of the Effective Date.

 

8.3                               NO OTHER WARRANTIES;
DISCLAIMER.  EXCEPT AS OTHERWISE SET FORTH IN THIS
AGREEMENT, UGS HEREBY ACKNOWLEDGES THAT THE LICENSED RIGHTS AND INTELLECTUAL
PROPERTY OF MSC ARE PROVIDED ON AN “AS IS” BASIS.  MSC HEREBY SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS OR
WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE LICENSED RIGHTS AND OTHER SUBJECT
MATTER CONTEMPLATED BY THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION: (I) ANY
IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ANY
OTHER IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF
PERFORMANCE; AND (II) ANY EXPRESS OR IMPLIED WARRANTIES AND/OR REPRESENTATIONS
THAT ANY PRODUCT, APPLICATION OR SERVICE IMPLEMENTING THE LICENSED RIGHTS
AND/OR INTELLECTUAL PROPERTY OF MSC WILL NOT INFRINGE INTELLECTUAL PROPERTY
RIGHTS OF ANY THIRD PARTY.

 

Article
IX:  Indemnification

 

9.1                               Indemnification by MSC. 
MSC will defend, at its expense, any action brought against UGS to the
extent that it is based upon a claim that any Software furnished hereunder
infringes a United States patent or a United States trademark or any copyright under any Berne convention member country, or
violates any third party trade secret or other intellectual property right or
proprietary

 

8

 

right and MSC will pay all
judgments, costs, expenses and damages finally awarded against UGS, provided
that MSC is given prompt written notice of such claim and is given all  reasonable information, assistance, and the authority to defend or settle the claim up to the maximum indemnifiable
amount equivalent with the liability limit set forth in Section 10.2.  UGS shall have the option to engage counsel
of its choosing to assist UGS in the defense of any such claim, provided that
UGS shall be responsible for paying all fees, costs and expenses associated
therewith.

 

MSC, at its option, will obtain for UGS the right
to continue using, or will replace or modify the Software involved so it
becomes noninfringing provided it will provide equivalent functionality.

 

MSC will have
no obligation under this Section if the alleged infringement or violation is
(i) based upon the use of the Software in combination with other software not
furnished by MSC or (ii) is based upon the Software as modified UGS or its
agents, if with respect to (i) and (ii) such alleged infringement or violation
would not have occurred except for such combined use or modification.

 

Nothing in this Section 9.1
shall be interpreted to excuse performance by MSC of its obligations under
Section 2.2. of  this Agreement.

 

9.2                               Indemnification by UGS.  UGS will
indemnify, defend and hold MSC, its officers, directors, employees, agents,
distributors, licensees and affiliates, harmless against all judgments, costs,
expenses and damages arising from any claim, suit, action or proceeding
(collectively a “claim”) based on: (i) any claim that the Derivative Works or
other enhancements or modifications to the Licensed Rights created by or on
behalf of UGS, or UGS’s exercise of the Licensed Rights granted hereunder in
combination with Intellectual Property or other items not provided by MSC, infringe
the copyright, patent and/or other intellectual property rights of a third
party and such claim would not have arisen but for the combination; and (ii)
any third party claim resulting from or in connection with this Agreement,
including without limitation, third party product liability claims and/or other
claims brought by third parties based on damage to property or injury or death
to Persons resulting from or in connection with results UGS or any End-User has
obtained through the negligent use or misuse of products that embody and/or are
covered by the Licensed Rights or any portion thereof.

 

ARTICLE X:  LIMITATION OF
LIABILITY

 

10.1                        UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE
LIABLE TO THE OTHER FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE
OR EXEMPLARY DAMAGES (EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES), ARISING FROM ANY PROVISION OF THIS AGREEMENT, INCLUDING, BUT NOT
LIMITED TO, LOSS OF REVENUE OR ANTICIPATED PROFITS OR LOST BUSINESS.

 

10.2                        WITH THE EXCEPTION OF MSC’S REPRESENTATIONS
UNDER SECTION 8.2, EITHER PARTY’S ENTIRE LIABILITY FOR ALL CLAIMS OR DAMAGES
ARISING OUT OF OR RELATED TO THIS AGREEMENT, REGARDLESS OF THE FORM OF ACTION,
WHETHER IN CONTRACT, EQUITY, NEGLIGENCE, INTENDED CONDUCT, TORT OR OTHERWISE,
WILL BE LIMITED TO AND WILL NOT EXCEED, IN THE AGGREGATE FOR ALL CLAIMS,
ACTIONS AND CAUSES OF ACTION OF EVERY KIND AND NATURE, [*].  IN NO EVENT WILL THE MEASURE OF DAMAGES
PAYABLE BY EITHER PARTY INCLUDE, NOR WILL EITHER PARTY BE LIABLE FOR, ANY
AMOUNTS FOR LOSS OF INCOME, PROFIT OR SAVINGS OR INDIRECT, INCIDENTAL,
CONSEQUENTIAL, EXEMPLARY, PUNITIVE OR SPECIAL DAMAGES OF ANY PARTY, INCLUDING
THIRD PARTIES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES IN ADVANCE, AND ALL SUCH

 

* Information for which
confidential treatment has been requested pursuant to Rule 24(b)(2) of the
Securities Exchange Act of 1934, as amended.

 

9

 

DAMAGES ARE EXPRESSLY DISCLAIMED. [*]. NOTWITHSTANDING THE FOREGOING,
THE PARTIES EXPRESSLY ACKNOWLEDGE THAT MONETARY DAMAGES ARE AN INADEQUATE
REMEDY FOR THE BREACH OF EITHER PARTY’S RIGHTS OR OBLIGATIONS UNDER ARTICLE II
(“GRANT”), WHICH SHALL ALSO BE GOVERNED BY AND SUBJECT TO THE ADDITIONAL
REMEDIES SET FORTH IN SECTION 11.1 (“INJUNCTIVE RELIEF & SPECIFIC
PERFORMANCE”).

 

ARTICLE XI:  INJUNCTIVE RELIEF, SPECIFIC PERFORMANCE &
ENFORCEMENT PROCEEDINGS

 

11.1                        Injunctive Relief & Specific
Performance.  The parties acknowledge that damages may not be an adequate remedy in
the event of any breach of this Agreement by either party.  Therefore, the parties agree that, in
addition to any other remedies either party may be entitled to at law or
equity, each party will be entitled to injunctive relief to stop the breach of any
provision of this Agreement by the other party, its officers, agents,
employees, assignees or licensees, or to an order requiring specific
performance of a term or obligation under this Agreement.  Notwithstanding the foregoing, the rights
granted to UGS in Sections 2.1 through 2.3 may not be revoked or terminated by
MSC as a remedy for default by UGS.

 

11.2                        Enforcement Proceedings.  In the event that any party hereto believes
there has been any infringement by an unlicensed third
party of
any of the Licensed Rights and/or Intellectual Property hereunder and such
party wants to bring an Action under this Section 11.2, such party shall
promptly notify the other party hereto and
provide such information as is available to confirm such infringing activity.  Any action to terminate infringing activity
(an “Action”), shall be governed by the following procedures and guidelines:

 

(a)              Action
by MSC.  MSC shall
have the first option (but not the obligation) to take any Action that it deems
appropriate to terminate the foregoing infringing
activity (including, without limitation, the initiation of legal proceedings,
settlement discussions and/or sublicense negotiations), in which case UGS shall
provide MSC with all reasonable assistance connection therewith and MSC shall
reimburse UGS for its reasonable out-of-pocket costs related to such assistance
(not including any attorneys fees or costs incurred by UGS).  Notwithstanding the foregoing, MSC shall use
commercially reasonable efforts to avoid any settlement of an Action upon terms
that would: (i) limit the scope of protection afforded by the Licensed Rights or Intellectual Property; (ii) compromise
the validity or enforceability of the Licensed Rights or Intellectual Property; (iii) limit the scope of rights granted to UGS hereunder; (iv) constitute a concession or an admission regarding
the rights or privileges of any party to this Agreement with respect to the Licensed Rights or Intellectual Property; or (v) impose
any obligation on UGS (including, without limitation, any obligation to make
any payment or forego the collection of any royalties or other payments). MSC
shall be responsible for all costs, fees and expenses directly related to any
such Action (collectively, the “Direct Costs”), which shall expressly exclude
any attorney’s fees and/or other expenses (the “Other Expenses”) incurred by
UGS.

 

(b)              Action
by UGS.  If MSC
provides written notice of its decision not to initiate an Action, then UGS
shall have the option (but not the obligation) to take any Action that it deems
appropriate to terminate the infringing activity (including, without
limitation, the initiation of legal proceedings and/or settlement discussions),
in which case MSC shall provide UGS with all reasonable assistance in
connection therewith (including, without limitation, being joined as a named
party in any legal proceeding), and UGS shall reimburse MSC for its

 

*
Information for which confidential treatment has been requested pursuant
to Rule 24(b)(2) of the Securities Exchange Act of 1934, as amended.

 

10

 

reasonable out-of-pocket costs related to such
assistance (not including any attorneys fees or costs incurred by MSC).  Notwithstanding the foregoing, UGS shall not
be entitled to settle any such Action (without the consent of MSC, which it may
withhold in its sole discretion) upon any terms that would: (i) limit the scope
of protection afforded by the Licensed Rights or Intellectual Property; (ii) compromise the validity or enforceability of
the Licensed Rights or Intellectual Property; (iii) limit the
scope of MSC’s rights hereunder; (iv) constitute a concession or an admission
regarding the rights or privileges of any party to this Agreement with respect
to the Licensed Rights or Intellectual Property; or (v) impose
any obligation on MSC (including, without limitation, any obligation to make
any payment or forego the collection of any royalties or other payments).  UGS shall be responsible for all Direct
Costs hereunder as well as all Other Expenses incurred by MSC in connection
therewith.

 

(c)              Allocation
of Damages.  In the
event that an Action results in monetary damages, MSC shall allocate said
damages as follows: (i) reimbursement of all Direct Costs; (ii) reimbursement
of Other Expenses; (iii) any remaining monetary damages (excluding exceptional,
punitive and/or treble damages) shall be allocated and distributed equally between the parties; and (iv) any exceptional, punitive and/or
treble damages shall be paid to MSC, which MSC shall then allocate equally with
UGS in the event UGS took the lead in prosecuting such Action pursuant to
Section 11.2(b).

 

ARTICLE XII:  CONFIDENTIALITY

 

12.1                        Prior to the execution of this Agreement,
the parties have executed a Confidential Information and Non-Disclosure
Agreement (“NDA”), dated October 3, 2002. 
This NDA is hereby incorporated by reference in this Agreement and shall
effectuate confidentiality provisions for this Agreement.  Notwithstanding the foregoing, to the extent
Confidential Information disclosed by MSC to UGS is contained in the Licensed
Rights or is provided to UGS as part of Technical Assistance relating to the
Licensed Rights, the UGS confidentiality obligations under the NDA shall not
apply to such Confidential Information.

 

In addition, the parties agree
to maintain the terms of this Agreement in confidence except as may be required
by law and to the extent the parties are required to disclose terms of this
Agreement they shall only provide terms to the extent so required.  The parties agree to cooperate in advance
with respect to any disclosure.

 

ARTICLE XIII:  EXPORT CONTROL

 

13.1                        Compliance.  This Agreement is
subject to all United States government laws, regulations, orders or other
restrictions regarding export from the United States of services, commodities,
software, technology or derivatives thereof, as such laws, regulations, orders,
or other restrictions may be enacted, amended or modified from time to time.
Notwithstanding anything to the contrary in this Agreement, UGS will not
directly or indirectly, separately or as part of a system, export or re-export
any MSC services, commodity, software, technology or derivatives thereof or
permit the shipment of same without obtaining the required approvals, if any,
from the relevant governmental agency.  UGS will comply with all applicable export,
re-export and import control laws and regulations.  UGS shall, at its own expense, obtain all export licenses and
approvals required by any government and shall comply with all applicable laws,
rules, policies and procedures of the United States Government.

 

13.2                        Indemnification.  UGS hereby
agrees to defend, indemnify and hold MSC, its agents, officers, directors,
affiliates and employees, harmless from and against any damages or expenses incurred
by MSC as a result of  any violation of
such laws or regulations by UGS or any of its agents, officers, directors or
employees.  MSC, at UGS’s sole cost and
expense, will provide

 

11

 

reasonable cooperation and assistance with
UGS’s requests to provide documentation, certificates and other material
necessary to obtain the required United States licenses and permits for the
export of the Licensed Products.

 

ARTICLE XIV:  MISCELLANEOUS

 

14.1                        Waiver.  Any
of the provisions of this Agreement may be waived by the party entitled to the
benefit thereof.  Neither party shall be
deemed, by any act or omission, to have waived any of its rights or remedies
hereunder unless such waiver is in writing and signed by the waiving party, and
then only to the extent specifically set forth in such writing.  A waiver with reference to one event shall
not be construed as continuing or as a bar to or waiver of any right or remedy
as to a subsequent event.  The failure
of either party to require performance by the other party of any provision
hereof shall not affect the full right to require such performance at any time
thereafter; nor shall the waiver by either party of a breach of any provision
hereof be taken or held to be a waiver of the provision itself.  No waiver by UGS shall operate to excuse any
obligation MSC may otherwise have to perform pursuant to the Consent Order, or
excuse UGS from accepting MSC’s performance of its obligations under the
Consent Order or this Agreement.

 

14.2                        Relationship of the Parties.  The
Parties are independent contractors, each party acting as a principal for its
own account and at its own expense and risk. 
No partnership or joint venture is intended to be created by this
Agreement, nor any principal-agent or employer-employee relationship.  Neither Party has, and neither Party shall
attempt to assert, the authority to make commitments for or to bind the other
Party to any obligation.

 

14.3                        Governing Law; Jurisdiction. 
This Agreement shall be interpreted and construed in accordance with the
laws of the State of California, without regard to its conflicts of law
principles.  Each party hereby consents
and submits to the personal jurisdiction of the United States and the state and
federal courts located in California, and expressly agrees that the venue for
any action arising under this Agreement shall be the appropriate court within
the Central District of California or the state courts located in Orange
County, California.

 

14.4                        Notices.  Except
as otherwise provided herein, any notice or other communication to be given
hereunder shall be in writing and shall be (as elected by the party giving such
notice): (i) personally delivered; (ii) transmitted by postage prepaid
registered or certified airmail, return receipt requested; (iii) deposited
prepaid with a nationally recognized overnight courier or service; or (iv) sent
via facsimile, with a confirmation copy sent via first class mail.  Unless otherwise provided herein, all
notices shall be deemed given on: (x) the date or receipt (or if delivery is
refused, the date of such refusal) if delivered personally or by courier; or
(y) three (3) days after the date of posting if transmitted by mail.  Either party may change its address for
notice purposes hereof not less than three (3) days prior notice to the other
party.  Notice hereunder shall be
directed to a party at the address for such party which is set forth below:

 

	
   

  	
  If to MSC:

  	
   

  	
  MSC.Software Corporation

  
	
   

  	
   

  	
   

  	
  2 MacArthur Place

  
	
   

  	
   

  	
   

  	
  Santa Ana, California 92707

  
	
   

  	
   

  	
   

  	
  Attention: Thomas Baker

  
	
   

  	
   

  	
   

  	
  With a copy to: Legal Group

  
	
   

  	
   

  	
   

  	
  Fax: (714) 784-4056

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If to UGS:

  	
   

  	
  Unigraphics Solutions Inc.

  
	
   

  	
   

  	
   

  	
  2000 Eastman Drive

  

 

12

 

	
   

  	
   

  	
   

  	
  Milford, Ohio 45150

  
	
   

  	
   

  	
   

  	
  Attention:  Jim Rusk

  
	
   

  	
   

  	
   

  	
  With a copy to: Legal Counsel

  
	
   

  	
   

  	
   

  	
  Fax:  (513) 576-5696

  

 

14.5                        Severability.  In
the event that any provision of this Agreement shall be unenforceable or
invalid under any applicable law or be so held by applicable court decision,
such unenforceability or invalidity shall not render this Agreement
unenforceable or invalid as a whole, and, in such event, such provision shall
be changed and interpreted so as to best accomplish the objectives of such
unenforceable or invalid provision within the limits of applicable law or
applicable court decisions.

 

14.6                        Headings.  The
section headings appearing in this Agreement are inserted only as a matter of
convenience and in no way define, limit, construe, or describe the scope or
extent of such section or in any way affect this Agreement.

 

14.7                        Other Agreements.  As
of the Effective Date, neither Party shall agree to any contractual provision
or term in any agreement with any third party that contains a provision or
term, the performance of which would constitute a material breach of this
Agreement.

 

14.8                        Schedules and Exhibits.  The
following Schedules, attached to this Agreement, are incorporated by reference
in their entirety:

 

Schedule A:             Divestiture Fees

Schedule B:             Description of Licensed Software/Licensed
Rights

Schedule C:             Third Party Software

Schedule D:             Licensed Trademarks

 

Exhibit 1:                           Decision and Order

Exhibit 2:                           Non-Disclosure Agreement (NDA)

 

14.9                        Entire Agreement. 
This Agreement shall not be modified or amended except by a subsequently
dated written amendment signed on behalf of both MSC and UGS by their duly
authorized representatives. This Agreement (together with all Exhibits and
Schedules attached hereto) constitutes the entire agreement between the parties
as to the subject matter hereof, and all prior negotiations, representations,
agreements and understandings (whether written or oral) are merged into,
extinguished by and completely expressed by this Agreement with the exception
of the Non-Disclosure Agreement (“NDA”) attached as Exhibit 2 hereto and the
Consent Order, both of which shall be deemed to survive the execution of this
Agreement.

 

14.10                 Modifications.  No
waiver, modification, release or amendment of any obligation under this
Agreement will be valid or effective unless in writing and signed by duly
authorized representatives of both parties hereto.

 

14.11                 Compliance with Consent
Order.  Nothing in this Agreement shall be
interpreted to vary or contradict the terms of the Consent Order or to excuse
performance by MSC of its obligations thereunder.  To the extent it would otherwise have the right to do so, UGS
shall have the right to bring a claim to enforce the rights to be granted to
the Acquirer under the Consent Order.

 

14.12                 Press Release.  The
parties shall reasonably cooperate with each other in the issuance of any press
release relating to this Agreement, which shall be subject to the prior written
approval of both parties hereto. 
Nothing contained herein shall prevent: (i) UGS from marketing Licensed

 

13

 

Products in accordance with and subject to the terms and conditions of
this Agreement; or (ii) either party from issuing press releases or other
disclosures as may be required by law.

 

14.13                 Approval by FTC. 
This Agreement is subject to final approval of the FTC.  In the event that the FTC either (i)
declines approval or (ii) does not provide approval by June 30, 2003, then
this Agreement and all obligations hereunder shall be void ab initio – provided, however,
that the terms and conditions of the Non-Disclosure Agreement (“NDA” attached
as Exhibit 2 hereto) shall remain in full force and effect and the parties
shall comply with their respective confidentiality and non-disclosure
obligations thereunder.

 

IN WITNESS WHEREOF,
the parties
hereto have caused this Divestiture and Software License Agreement to be
executed as of the Effective Date by their duly authorized
representatives.  Each party warrants
that its executing representative has the power and authority to sign this
Agreement and to thus bind its party.

 

 

	
  MSC.SOFTWARE CORPORATION (“MSC”)

  	
  UNIGRAPHICS SOLUTIONS INC. (“UGS”)

  
	
   

  	
   

  
	
  By:

  	
  /s/ Frank
  Perna, Jr.

  	
   

  	
  By:

  	
  /s/ Charles
  C. Grindstaff

  	
   

  
	
   

  	
   

  
	
  Title: 
  Chairman and CEO

  	
  Title: 
  President, PLM Products

  
	
   

  	
   

  
	
  Date: 
  March 31, 2003

  	
  Date: April 7, 2003

  
						

 

14

 

Schedule A

 

DIVESTITURE FEES

 

[*]

 

 

* Information for which confidential treatment has been requested
pursuant to Rule 24(b)(2) of the Securities Exchange Act of 1934, as amended.

 

15

 

Schedule B

 

DESCRIPTION OF LICENSED SOFTWARE / LICENSED RIGHTS

 

“Licensed Rights” means:

 

1.               the
following:

 

a.               all
Intellectual Property and other property rights owned or licensed by MSC relating
to the version of MSC.Nastran that is most current as of the date the Agreement
Containing Consent Order is accepted by the Commission for public comment;

 

b.              all
Intellectual Property of any kind acquired by MSC as a result of the
Acquisition of UAI, including all rights in and to any versions of Nastran and
any other computer Software; and

 

c.               all
Intellectual Property of any kind acquired by MSC as a result of the
Acquisition of CSAR, including all rights in and to any versions of Nastran and
any other computer Software.

 

2.               “Licensed
Rights” includes but is not limited to, with respect to each of the enumerated
items set forth in the foregoing paragraph 1, the following:

 

a.               all
computer code, including standard versions and user-modifiable versions, source
code, object code, linear and nonlinear solution sequences, object libraries,
applications, features, enhancements, optional modules, DMAP capabilities and
features, program interfaces with Complimentary Software, and MSC.Nastran Tool
Kits, for all operating systems and computer platforms;

 

b.              all
Software programs, instructions, manuals, documentation, scripts, development
tools, development environments, proprietary programming languages, designs,
drawings, specifications, research data, problem resolution protocols and all
other Intellectual Property used to develop, upgrade, maintain, test, enhance
or add features, capabilities, elements or improvements to the licensed items;

 

c.               all
Software programs, instructions, manuals, documentation or materials of any
kind used or supplied to a user of any of the licensed items to facilitate
installation or operation of any of the licensed items, or to facilitate
migration or conversion by any user to or from any of the licensed items;

 

d.              all
executable programs, test problems, test results, regression test Software,
development support Software, interfaces with Complimentary Software, APIs,
manuals, guides, reports, and other documentation; and

 

e.               all
other Intellectual property and intangible property rights that may be
reasonably necessary to facilitate the use by UGS of the Licensed Rights for
the purposes set forth in the Consent Order.

 

The Licensed Rights shall include all
training materials related to the Licensed Rights.

 

The Licensed Rights shall include all test
material including all data (including all test cases/test solves/input data
decks) including all customer generated or owned data (“Customer Test
Information”) provided that Customer test information shall be treated as
confidential information. The Customer Test Information will not include any
personally identifiable information regarding any specific customer.

 

The Licensed Rights shall include the
following licensed Software:

 

MSC.Nastran 2001 v.9.

 

16

 

In addition, if in the period from the date
this Agreement is signed through July 31, 2003, MSC releases a new Minor
Commercial Version of MSC.Nastran (as defined below), the parties agree that
MSC shall provide to UGS the source code that represents that minor version.

 

A new minor commercial version of MSC.Nastran
shall mean the release of a version of MSC.Nastran with a version number
sequenced “2001 v.[x]” (“Minor Commercial Version”).  Minor Commercial Version shall not mean any version of
MSC.Nastran with a version number sequenced “2003 v.[x].”  In addition, a new Minor Commercial Version
shall mean the version generally made available by MSC to its clients as
evidenced by shipment containing such new Minor Commercial Version to an MSC
client or clients that have entered into a license agreement for the licensing
of such new version.  A pre-release
version made available to clients for non-production use, for the purpose of
testing, evaluation and/or feedback (“Beta Version”) shall not be considered a
commercial release and use of a Beta Version by an MSC customer shall not
constitute a basis for triggering the condition described in the foregoing
paragraph.  Beta Versions include
versions provided to clients as part of funded development and that have not
been made generally available to MSC’s clients as a commercial release.  Lastly, a commercial release with a “build
date” or date on which the code was compiled and prepared for release shall not
constitute a commercial release so long as that version was not made available
to MSC’s customers pursuant to the commercial release conditions described
above.

 

Delivery and Acceptance terms:

 

No later than five (5) business days
following final approval by the Commission of the divestiture to UGS of the
Assets to be Divested,(1) as that term is defined in the Consent Order, MSC
shall deliver to UGS the Assets to be Divested and all other materials and
assets to be delivered hereunder, including the Licensed Rights.  MSC agrees to deliver, and UGS agrees to
accept delivery of the Assets to be Divested and all other materials and assets
to be delivered hereunder at the following address:

 

EDS PLM

10824 Hope Street

Cypress, California  90630

 

UGS shall have five (5) business days following the date of delivery to
inspect the Assets to be Divested and all other materials and assets to be
delivered hereunder for the purpose of determining their accuracy and
completeness.  If, in UGS’ reasonable
opinion, the materials delivered by MSC do not constitute a complete inventory
of the Assets to be Divested and all other materials and assets to be delivered
hereunder, it must immediately provide MSC notice in writing, which notice
shall specifically describe the materials UGS believes remain to be provided.  In the event that UGS does not provide MSC
with any such written notice by the close of business on the third day
following delivery by MSC, then the materials shall be deemed accepted at the
end of the fifth business day following delivery,  but without prejudice to any of UGS’ rights under the Agreement,
and such date shall constitute the Closing Date.

 

Following the Closing Date, if upon the exercise of reasonable
diligence, UGS determines that an item that was meant to be included in the
Assets to be Divested or any other materials and assets to be delivered
hereunder was not included in the materials delivered by MSC, UGS shall retain
the right to submit a written request to MSC for such item, and MSC shall
promptly deliver such item or provide UGS with a written notice explaining why,
in MSC’s reasonable opinion, such item is not a part of the Assets To Be
Divested and all other materials and assets to be delivered hereunder.  Any such request for an item shall not
operate to re-establish a new Closing Date, which Closing Date shall remain the
one established

 

(1) “Assets To Be Divested” has
that meaning given in the Consent Order, and is defined as: 1. a License to
the  Licensed Rights; 2. such tangible
embodiments of the Licensed Rights (including but not limited to physical and
electronic copies) as may be necessary or appropriate to enable UGS to utilize
the Licensed Rights for the purposes set forth in the Consent Order; and 3. a
copy or copies, in such form or format as may be necessary or appropriate to
enable UGS to utilize them, of the following: a. all customer files acquired by
MSC as a result of the Acquisition of UAI and the Acquisition of CSAR; and b.
all marketing information, sales training materials, and current (as of the
Divestiture Date) customer lists, customer contact information, and customer
support log database contents relating to customers who use MSC.Nastran in the
United States.

 

17

 

pursuant to the Delivery and
Acceptance procedures set forth above. 
Nothing herein shall operate to waive or limit in any way MSC’s
obligations, both under this Agreement and under the Consent Order, to divest
all of the Assets To Be Divested and all other materials and assets to be
delivered hereunder to UGS.

 

18

 

Schedule C

 

THIRD PARTY SOFTWARE

 

[*]

 

 

* Information for which confidential treatment has been requested
pursuant to Rule 24(b)(2) of the Securities Exchange Act of 1934, as amended.

 

19

 

SCHEDULE D

 

LICENSED
TRADEMARKS

 

The Licensed Marks include the following
registered trademarks:

 

1.               MSC.Nastran®

2.               MSC.Software
Corporation®

3.               CSA®

4.               CSA/GENSA®

5.               CSAR/OPTIM2®

6.               CSAR/SIZING2®

 

MSC represents and warrants that, as of the
Effective Date of this Agreement, it owns no federally registered trademarks to
the following names: “Universal Analytics, Inc.” and “UAI” (collectively the
“UAI Names”).  Furthermore, MSC agrees
that it will not object to or otherwise challenge the use of the UAI Names, or
any other trademarks or trade names of the Licensed Rights, by UGS for the
purposes set forth in Section 2.3 (Trademark License).

 

TRADEMARK USAGE GUIDELINES

 

Notice.  In connection with the use of the Licensed Marks, UGS will, for each page
or product surface on which a Licensed Mark is used, mark the use of the
Licensed Marks with the appropriate trademark symbol in accordance with
applicable law (e.g., “TM”,
or “®”) and identify MSC as the owner of such marks.

 

20

 

EXHIBIT 1

 

DECISION & ORDER

 

[Omitted.  Immaterial to agreement.]

 

21

 

EXHIBIT 2

 

NON-DISCLOSURE AGREEMENT (NDA)

 

[Omitted.  Immaterial to agreement.]

 

22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]