Document:

Form of Performance Stock Unit Award Agreement

 Exhibit 10.7 
 MSC.SOFTWARE CORPORATION 
 2006 PERFORMANCE INCENTIVE PLAN 
 PERFORMANCE STOCK UNIT AWARD AGREEMENT 
 FOR NON-U.S. EMPLOYEES 
 THIS PERFORMANCE STOCK UNIT AWARD AGREEMENT (this “Agreement”) is dated as
of [                    , 2006] by and between MSC.Software Corporation, a Delaware corporation (the
“Corporation”), and [                    ] (the “Participant”). 
 W I T N E S S E T H 
 WHEREAS,
pursuant to this Agreement, any appendix to this Agreement for the Participant’s country of residence (the “Appendix”), the MSC.Software Corporation 2006 Performance Incentive Plan (the “U.S. Plan”) and any
sub-plan to the U.S. Plan (collectively, the “Plan”), the Corporation has granted to the Participant effective as of the date hereof (the “Award Date”) a credit of stock units under the Plan (the “Stock Unit
Award” or “Award”), upon the terms and conditions set forth in this Agreement, any Appendix and in the Plan. 
 NOW THEREFORE, in consideration of the mutual promises made herein and the mutual benefits to be derived therefrom, the parties agree as follows: 
 1. Defined Terms. Capitalized terms used herein and not otherwise defined herein shall have the meaning assigned to such terms in the Plan. 
 2. Grant. Subject to the terms of this Agreement and the Plan, the Corporation hereby grants to the Participant a Stock Unit Award with
respect to an aggregate of [            ] stock units (subject to adjustment as provided in Section 7.1 of the U.S. Plan) (the “Stock Units”). As used herein,
the term “stock unit” shall mean a non-voting unit of measurement which is deemed for bookkeeping purposes to be equivalent to one outstanding share of the Corporation’s Common Stock (subject to adjustment as provided in
Section 7.1 of the U.S. Plan) solely for purposes of the Plan, this Agreement and any Appendix. The Stock Units shall be used solely as a device for the determination of the payment to eventually be made to the Participant if such Stock Units
vest pursuant to Section 3. The Stock Units shall not be treated as property or as a trust fund of any kind. 
 3.
Vesting. Subject to Section 8 and Section 9 below, one-third of the total number of Stock Units subject to the Award (subject to adjustment under Section 7.1 of the U.S. Plan) shall be eligible to vest and become
nonforfeitable based on the Corporation’s performance during each of the calendar years 2007, 2008 and 2009 (each such year, a “Performance Year”). The Stock Units that are eligible to vest with respect to a particular
Performance Year shall vest if and to the extent that the performance measures set forth on Exhibit A attached hereto and incorporated herein by reference are satisfied with respect to such Performance Year; provided, however, that any
vesting of the Stock Units with respect to a Performance Year shall be contingent upon the Participant’s continued employment by the Corporation and its Subsidiaries through the Determination Date (as defined below) that follows such
Performance Year. The vesting of the Stock Units shall be determined by the Compensation Committee of the Board of 

  

 1 

 
Directors of the Corporation (the “Committee”) in its sole discretion as soon as practicable after the end of the Performance Year but in no
event later than March 30 of the calendar year that follows such Performance Year. (The date on which the Committee makes such determination is referred to herein as the “Determination Date.”) Any Stock Units that are eligible
to vest with respect to a particular Performance Year and do not vest as of the Determination Date that follows such Performance Year shall automatically terminate and be cancelled as of such Determination Date without payment of any consideration
by the Corporation and without any other action by the Participant. Any such terminated Stock Units shall not thereafter be considered outstanding Stock Units for purposes of the Award, including (without limitation) for purposes of crediting
dividend equivalents pursuant to Section 5(b) or acceleration of vesting pursuant to Section 8(b) or Section 9. 
 4.
Continuance of Employment. The vesting schedule requires continued employment or service through each applicable vesting date as a condition to the vesting of the applicable installment of the Award and the rights and benefits under
this Agreement. Employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Participant to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following
a termination of employment or services as provided in Section 8(a) below or under the Plan. 
 5. Dividend and Voting
Rights. 
 (a) Limitations on Rights Associated with Units. The Participant shall have no rights as a stockholder of the
Corporation, no dividend rights (except as expressly provided in Section 5(b) with respect to Dividend Equivalent Rights) and no voting rights, with respect to the Stock Units and any shares of Common Stock underlying or issuable in respect of
such Stock Units until such shares of Common Stock are actually issued to and held of record by the Participant. No adjustments will be made for dividends or other rights of a holder for which the record date is prior to the date of issuance of the
stock certificate. 
 (b) Dividend Equivalent Rights Distributions. In the event that the Corporation pays an ordinary cash
dividend on its Common Stock and the related dividend payment record date occurs at any time after the Award Date and before all of the Stock Units subject to the Award have either been paid pursuant to Section 7 or terminated pursuant to
Section 3 or Section 8(a), the Corporation shall credit the Participant as of such record date with an additional number of Stock Units equal to (i) the per-share cash dividend paid by the Corporation on its Common Stock with respect
to such record date, multiplied by (ii) the total number of outstanding and unpaid Stock Units (including any dividend equivalents previously credited hereunder) (with such total number adjusted pursuant to Section 7.1 of the U.S. Plan and
Section 9 hereof) subject to the Award as of such record date, divided by (iii) the fair market value of a share of Common Stock (as determined under the Plan) on such record date. Any Stock Units credited pursuant to the foregoing
provisions of this Section 5(b) shall be subject to the same vesting, payment and other terms, conditions and restrictions as the original Stock Units to which they relate. No crediting of Stock Units shall be made pursuant to this
Section 5(b) with respect to any Stock Units which, as of such record date, have either been paid pursuant to Section 7 or terminated pursuant to Section 3 or Section 8(a). 
  

 2 

 6. Restrictions on Transfer. Neither the Stock Unit Award, nor any interest therein or
amount or shares payable in respect thereof may be sold, assigned, transferred, pledged or otherwise disposed of, alienated or encumbered, either voluntarily or involuntarily. The transfer restrictions in the preceding sentence shall not apply to
(a) transfers to the Corporation, or (b) transfers by will or the laws of descent and distribution. 
 7. Timing and Manner
of Payment of Stock Units. On or as soon as administratively practical following each vesting of the applicable portion of the total Award pursuant to Section 3, Section 8 or Section 9, the Corporation shall deliver to the
Participant a number of shares of Common Stock (either by delivering one or more certificates for such shares or by entering such shares in book entry form, as determined by the Corporation in its discretion) equal to the number of Stock Units
subject to this Award that vest on the applicable vesting date, unless such Stock Units terminate prior to the given vesting date pursuant to Section 8(a). The Corporation’s obligation to deliver shares of Common Stock or otherwise make
payment with respect to vested Stock Units is subject to the condition precedent that the Participant or other person entitled under the Plan to receive any shares with respect to the vested Stock Units deliver to the Corporation any representations
or other documents or assurances required pursuant to Section 8.1 of the U.S. Plan. The Participant shall have no further rights with respect to any Stock Units that are paid or that terminate pursuant to Section 3 or Section 8(a).

 8. Effect of Termination of Employment or Change in Control Event. 
 (a) Termination of Employment. The Participant’s Stock Units shall terminate to the extent such units have not become vested prior to
the first date the Participant is no longer employed by the Corporation or one of its Subsidiaries, regardless of the reason for the termination of the Participant’s employment with the Corporation or a Subsidiary, whether with or without
cause, voluntarily or involuntarily. If any unvested Stock Units are terminated hereunder, such Stock Units shall automatically terminate and be cancelled as of the applicable termination date without payment of any consideration by the Corporation
and without any other action by the Participant, or the Participant’s personal representative, as the case may be. For purposes of the foregoing sentence, the Participant’s employment is terminated as of the date that the Participant is no
longer actively employed and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law). The Board or
Administrator shall have the exclusive discretion to determine when the Participant is no longer actively employed for purposes of the Participant’s Award. 
 (b) Automatic Acceleration Upon Change in Control Event. Upon a Change in Control Event, any Stock Units subject to the Award that are not then otherwise vested (and have not previously terminated
pursuant to Section 3 or Section 8(a)) shall automatically become vested upon the occurrence of such event. 
 9. Adjustments
Upon Specified Events. The Administrator may accelerate payment and vesting of the Stock Units in such circumstances as it, in its sole discretion, may determine. In addition, upon the occurrence of certain events relating to the
Corporation’s stock contemplated by Section 7.1 of the U.S. Plan (including, without limitation, an extraordinary cash dividend on such stock), the Administrator shall make adjustments in accordance with such 

  

 3 

 
section in the number of Stock Units then outstanding and the number and kind of securities that may be issued in respect of the Award. No such adjustment
shall be made with respect to any ordinary cash dividend for which dividend equivalents are credited pursuant to Section 5(b). Furthermore, the Administrator shall adjust the performance measures set forth on Exhibit A hereto to the
extent (if any) it determines that the adjustment is necessary or advisable to preserve the intended incentives and benefits to reflect (1) any material change in corporate capitalization, any material corporate transaction (such as a
reorganization, combination, separation, merger, acquisition, or any combination of the foregoing), or any complete or partial liquidation of the Corporation, (2) any change in accounting policies or practices, (3) the effects of any
special charges to the Corporation’s earnings, or (4) any other similar special circumstances. 
 10. Tax
Withholding. Regardless of any action the Corporation and/or the Participant’s employer (the “Employer”) take with respect to any or all income tax (including U.S. federal, state and local tax and/or non-U.S. tax), social
insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items legally due by the Participant is and remains the
Participant’s responsibility and that the Corporation and/or the Employer (a) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including the grant of the
Stock Units, the vesting of the Stock Units, the delivery of shares of Common Stock, the subsequent sale of any shares of Common Stock acquired at vesting and the receipt of any dividends; and (b) do not commit to structure the terms of the
grant or any aspect of the Award to reduce or eliminate the Participant’s liability for Tax-Related Items. 
 Prior to the relevant
taxable event, the Participant shall pay or make adequate arrangements satisfactory to the Corporation and/or the Employer to satisfy all withholding and payment on account obligations of the Corporation and/or the Employer. In this regard, if
permissible under local law, the Participant authorizes the Corporation and/or the Employer, at its discretion, to satisfy the obligations with regard to all Tax-Related Items legally payable by the Participant by reducing the number of shares of
Common Stock to be delivered upon settlement of vested Stock Units by such number of whole shares valued at their then fair market value (with the “fair market value” of such shares determined in accordance with the applicable provisions
of the Plan), equal to the amount necessary to satisfy the minimum statutorily applicable withholding amount. If the foregoing method of withholding is prohibited or insufficient to satisfy all Tax-Related Items legally payable by the Participant or
if the Corporation, in its discretion, determines not to apply the foregoing method of withholding for any other reason, then the Participant hereby authorizes the Corporation and/or the Employer to satisfy the obligations by one or a combination of
the following: (a) withholding from the Participant’s wages or other cash compensation paid to the Participant by the Corporation and/or the Employer; or (b) selling shares or arranging for the sale of shares of Common Stock (in
either case on the Participant’s behalf and at the Participant’s direction pursuant to this authorization) issued in settlement of vested Stock Units. If the obligation of Tax-Related Items is satisfied by reducing the number of shares of
Common Stock delivered as described herein, the Participant is deemed to have been issued the full number of shares of Common Stock subject to the Award, notwithstanding that a number of the shares of Common Stock are held 

  

 4 

 
back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of the Award. 
 Finally, the Participant shall pay to the Corporation and/or the Employer any amount of Tax-Related Items that the Corporation and/or the Employer may be
required to withhold as a result of the Participant’s participation in the Plan that cannot be satisfied by the means previously described. The Corporation may refuse to deliver to the Participant any shares of Common Stock pursuant to the
Award if the Participant fails to comply with the Participant’s obligations in connection with the Tax-Related Items as described in this Section 10. 
 11. Acknowledgement of Nature of Plan and Award. In accepting the Award, the Participant acknowledges that: 
 (a) the Plan is established voluntarily by the Corporation, it is discretionary in nature, and it may be modified, amended, suspended or terminated by the Corporation at any time, unless otherwise provided in the Plan
and this Agreement; 
 (b) the Award is voluntary and occasional and does not create any contractual or other right to receive future awards
of Stock Units, or benefits in lieu of Stock Units, even if Stock Units have been granted repeatedly in the past; 
 (c) all decisions with
respect to future awards, if any, will be at the sole discretion of the Corporation; 
 (d) the Participant’s participation in the Plan
is voluntary; 
 (e) the Participant’s participation in the Plan shall not create a right to further employment with the Employer and
shall not interfere with the ability of the Employer to terminate the Participant’s employment or service relationship (if any) at any time with or without cause; 
 (f) the Award is an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Corporation or any Subsidiary, and which is outside the scope of the Participant’s
employment or service contract, if any; 
 (g) the Award is not part of normal or expected compensation or salary for any purposes,
including, but not limited to, calculation of any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be
considered as compensation for, or relating in any way to, past services for the Corporation or any Subsidiary; 
 (h) in the event that the
Participant is not an employee of the Corporation, the Award and the Participant’s participation in the Plan will not be interpreted to form an employment or service contract or relationship with the Corporation; and, furthermore, the Award and
the Participant’s participation in the Plan will not be interpreted to form an employment or service contract or relationship with the Employer or any other Subsidiary; 
  

 5 

 (i) the future value of the underlying shares of Common Stock is unknown and cannot be predicted with
certainty; 
 (j) in consideration of the Award, no claim or entitlement to compensation or damages shall arise from termination of the Award
or from any diminution in value of the Award or shares of Common Stock acquired upon vesting of the Award resulting from termination of the Participant’s employment or service by the Corporation or any Subsidiary (for any reason whatsoever and
whether or not in breach of local labor laws) and the Participant irrevocably releases the Corporation and any Subsidiary from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent
jurisdiction to have arisen, then, by signing this Agreement, the Participant shall be deemed irrevocably to have waived his or her entitlement to pursue such claim; 
 (k) the Corporation is not providing any tax, legal or financial advice, nor is the Corporation making any recommendations regarding the Participant’s participation in the Plan or the Participant’s
acquisition or sale of the underlying shares of Common Stock; and 
 (l) the Participant is hereby advised to consult with the
Participant’s own personal tax, legal and financial advisors regarding the Participant’s participation in the Plan before taking any action related to the Plan. 
 12. Data Privacy Notice and Consent. The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the
Participant’s personal data as described in this Agreement and any other Stock Unit grant materials by and among, as applicable, the Employer, the Corporation and its Subsidiaries for the exclusive purpose of implementing, administering and
managing the Participant’s participation in the Plan. 
 The Participant understands that the Corporation and the Employer
may hold certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality,
job title, any shares of stock or directorships held in the Corporation, details of all Stock Units or any other entitlement to shares of Common Stock awarded, canceled, vested, unvested or outstanding in the Participant’s favor, for the
exclusive purpose of implementing, administering and managing the Plan (“Data”). 
 The Participant understands that
Data will be transferred to Citigroup Global Markets Inc., or such other stock plan service provider as may be selected by the Corporation in the future, which is assisting the Corporation with the implementation, administration and management of
the Plan. The Participant understands the recipients of the Data may be located in the Participant’s country, in the United States or elsewhere, and that the recipients’ country may have different data privacy laws and protections than the
Participant’s country. The Participant understands that he or she may request a list with the names and addresses of any potential recipients of the Data by contacting the Participant’s local human resources representative. The Participant
authorizes the Corporation, Citigroup Global Markets Inc., and any other possible recipients which may assist the Corporation (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and

  

 6 

 
transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Participant’s participation
in the Plan. The Participant understands that Data will be held only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan. The Participant understands that he or she may, at any time, view
Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Participant’s local human
resources representative. The Participant understands, however, that refusing or withdrawing his or her consent may affect the Participant’s ability to participate in the Plan. For more information on the consequences of the Participant’s
refusal to consent or withdrawal of consent, the Participant understands that the Participant may contact his or her local human resources representative. 
 13. Notices. Any notice to be given under the terms of this Agreement shall be in writing and addressed to the Corporation at its principal office to the attention of the Secretary, and to the
Participant at the Participant’s last address reflected on the Corporation’s records, or at such other address as either party may hereafter designate in writing to the other. Any such notice shall be given only when received, but if the
Participant is no longer an employee of the Corporation, shall be deemed to have been duly given by the Corporation when enclosed in a properly sealed envelope addressed as aforesaid, registered or certified, and deposited (postage and registry or
certification fee prepaid) in a post office or branch post office regularly maintained by the United States Government. 
 14.
Plan. The Award and all rights of the Participant under this Agreement are subject to the terms and conditions of the provisions of the Plan, incorporated herein by reference. The Participant agrees to be bound by the terms of the Plan
and this Agreement. The Participant acknowledges having read and understanding the Plan, the Prospectus for the Plan, and this Agreement. Unless otherwise expressly provided in other sections of this Agreement, provisions of the Plan that confer
discretionary authority on the Board or the Administrator do not (and shall not be deemed to) create any rights in the Participant unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the
Administrator so conferred by appropriate action of the Board or the Administrator under the Plan after the date hereof. 
 15.
Entire Agreement. This Agreement and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan
and this Agreement may be amended pursuant to Section 8.6 of the U.S. Plan. Such amendment must be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such
waiver does not adversely affect the interests of the Participant hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. 
 16. Limitation on Participant’s Rights. Participation in the Plan confers no rights or interests other than as herein provided. This
Agreement creates only a contractual obligation on the part of the Corporation as to amounts payable and shall not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. The Participant shall
have only the rights of a general unsecured creditor of the Corporation with respect to 

  

 7 

 
amounts credited and benefits payable, if any, with respect to the Stock Units, and rights no greater than the right to receive the Common Stock as a general
unsecured creditor with respect to Stock Units, as and when payable hereunder. 
 17. Counterparts. This Agreement may be
executed simultaneously in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
 18. Section Headings. The section headings of this Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof. 
 19. Language. If the Participant has received this Agreement or any other document related to the Plan translated into a language other
than English and if the translated version is different than the English version, the English version will control, unless otherwise prescribed by local law. 
 20. Governing Law and Choice of Venue. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, as provided in the U.S. Plan, without regard to
conflict of law principles thereunder. For purposes of litigating any dispute that arises under the Award or this Agreement, the parties hereby submit to and consent to the jurisdiction of the State of California, and agree that such litigation
shall be conducted in the courts of Orange County, California, or the federal courts for the United States for the Central District of California, and no other courts, where this Award of Stock Units is made and/or to be performed. 
 21. Construction. It is intended that the terms of the Award will not result in the imposition of any tax liability pursuant to
Section 409A of the Code. The Agreement shall be construed and interpreted consistent with that intent. 
 22. Appendix.
Notwithstanding any provision in this Agreement to the contrary, the Stock Units shall be subject to the special terms and provisions as set forth in the Appendix to this Agreement for the Participant’s country of residence, if any. 

IN WITNESS WHEREOF, the Corporation has caused this Agreement to be executed on its behalf by a duly authorized officer and the Participant has
hereunto set his or her hand as of the date and year first above written. 
  

											
	 MSC.SOFTWARE CORPORATION,
 a Delaware corporation
	 	 	 	 	 	PARTICIPANT	 	 
	 		 			 
	By:	 	  	 	 	 		 	  	 	 
	 	 	 	 		 	Signature	 	 
	Print Name: __________________________________________	 	 	 		 		 	 
	 	 	 	 		 	  	 	 
	 Its:_________________________________________________
  
	 	 	 	 	 	 Print Name
  
	 	 

  

 8 

 Exhibit A 
 PERFORMANCE MEASURES 
 (a) 2007 Performance Year. Up to one-third of the total number of Stock Units (the
“2007 Eligible Stock Units”) shall vest based on the percentage increase in software license revenue during the 2007 Performance Year when compared against software license revenue during calendar year 2006 as follows: 
  

			
	 Percent Software License Revenue
Growth
	  	 Percent of 2007 Eligible Stock Units That Vest

	 Less than 5%
	  	0
	 5% or greater but less than 8%
	  	33.33%
	 8% or greater but less than 10%
	  	66.66%
	 10% or greater
	  	100.00%

 (b) 2008 Performance Year. Up to one-third of the total number of Stock Units (the “2008
Eligible Stock Units”) shall vest based on the percentage increase in software license revenue during the 2008 Performance Year when compared against software license revenue during calendar year 2007 as follows: 
  

			
	 Percent Software License Revenue
Growth
	  	 Percent of 2008 Eligible Stock Units That Vest

	 Less than 5%
	  	0
	 5% or greater but less than 8%
	  	33.33%
	 8% or greater but less than 10%
	  	66.66%
	 10% or greater
	  	100.00%

 (c) 2009 Performance Year. Up to one-third of the total number of Stock Units (the “2009
Eligible Stock Units”) shall vest based on the percentage increase in software license revenue during the 2009 Performance Year when compared against software license revenue during calendar year 2008 as follows: 
  

			
	 Percent Software License Revenue
Growth
	  	 Percent of 2009 Eligible Stock Units That Vest

	 Less than 5%
	  	0
	 5% or greater but less than 8%
	  	33.33%
	 8% or greater but less than 10%
	  	66.66%
	 10% or greater
	  	100.00%

  

 9 

 APPENDIX A 
 India 
 MSC.Software Corporation 2006 Performance Incentive Plan 
 Performance Stock Unit Award Agreement for Non-U.S. Employees 
 Exchange Control Notification 
 To the extent required by local law, the Participant must immediately repatriate all proceeds
resulting from the sale of shares of Common Stock issued upon vesting of the Stock Units to India and convert the proceeds into local currency. The Participant will receive a foreign inward remittance certificate (“FIRC”) from the bank
where the Participant deposits the foreign currency. The Participant should maintain the FIRC as evidence of the repatriation of funds in the event the Reserve Bank of India or the Employer requests proof of repatriation. 
  

 10Form of Incentive Stock Option Agreement

 Exhibit 10.8 
 MSC.SOFTWARE CORPORATION 
 2006 PERFORMANCE INCENTIVE PLAN 
 INCENTIVE STOCK OPTION AGREEMENT 
 THIS INCENTIVE STOCK OPTION AGREEMENT (this “Option Agreement”) dated _____________________ by and between MSC.SOFTWARE CORPORATION, a Delaware corporation (the “Corporation”), and
___________________________ (the “Grantee”) evidences the incentive stock option (the “Option”) granted by the Corporation to the Grantee as to the number of shares of the Corporation’s Common Stock first set
forth below. 
  

					
	 Number of Shares of Common Stock:1
	 	  	    	Award Date:                                   
      
	 		 
	Exercise Price per Share:1                                      
                                   
 $	 	  	    	Expiration Date:1,2                             
	 
	Vesting1,2 The Option shall become vested as to 25% of the total number of shares of Common Stock subject to the Option on the first
anniversary of the Award Date. The remaining 75% of the total number of shares of Common Stock subject to the Option shall become vested and exercisable as to an additional 25% on and after each of the second, third and fourth anniversaries of the
Award Date.

 The Option is granted under the MSC.Software Corporation 2006 Performance Incentive Plan (the
“Plan”) and subject to the Terms and Conditions of Incentive Stock Option (the “Terms”) attached to this Option Agreement (incorporated herein by this reference) and to the Plan. The Option has been granted to the
Grantee in addition to, and not in lieu of, any other form of compensation otherwise payable or to be paid to the Grantee. The Option is intended as an incentive stock option within the meaning of Section 422 of the Code (an
“ISO”). Capitalized terms are defined in the Plan if not defined herein. The parties agree to the terms of the Option set forth herein. The Grantee acknowledges receipt of a copy of the Terms, the Plan and the Prospectus for the
Plan. 
  

									
	“GRANTEE”	 		 	 MSC.SOFTWARE CORPORATION
 a Delaware
corporation

				
	  	 		 	By:	 	  
	Signature	 		 		 	
				
	  	 		 	Print Name:	 	  
	Print Name	 		 		 	
		 		 	Title:	 	  

 CONSENT OF SPOUSE 
 In consideration of the Corporation’s execution of this Option Agreement, the undersigned spouse of the Grantee agrees to be bound by all of the
terms and provisions hereof and of the Plan. 
  

					
	  	    		 	  
	 Signature of Spouse
	    		 	Date

  
  

	 1
	 Subject to adjustment under Section 7.1 of the Plan. 

	 2
	 Subject to early termination under Section 4 of the Terms and Section 7.4 of the Plan.

  

 TERMS AND CONDITIONS OF INCENTIVE STOCK OPTION 
 1. Vesting; Limits on Exercise. 
 The Option
shall vest and become exercisable in percentage installments of the aggregate number of shares subject to the Option as set forth on the cover page of this Option Agreement. The Option may be exercised only to the extent the Option is vested and
exercisable. 
  

	 	•	 	 Cumulative Exercisability. To the extent that the Option is vested and exercisable, the Grantee has the right to exercise the Option (to the extent not
previously exercised), and such right shall continue, until the expiration or earlier termination of the Option. 

  

	 	•	 	 No Fractional Shares. Fractional share interests shall be disregarded, but may be cumulated. 

  

	 	 •
	 	 Minimum Exercise. No fewer than 1001 shares of Common Stock may be purchased at any one time, unless the number purchased is the total number at the time exercisable under the Option.

  

	 	•	 	 ISO Value Limit. If the aggregate fair market value of the shares with respect to which ISOs (whether granted under the Option or otherwise) first become
exercisable by the Grantee in any calendar year exceeds $100,000, as measured on the applicable Award Dates, the limitations of Section 5.1.2 of the Plan shall apply and to such extent the Option will be rendered a nonqualified stock option.

 2. Continuance of Employment/Service Required; No Employment/Service Commitment. 
 The vesting schedule requires continued employment or service through each applicable vesting date as a condition to the vesting of the applicable
installment of the Option and the rights and benefits under this Option Agreement. Employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Grantee to any proportionate vesting or avoid or
mitigate a termination of rights and benefits upon or following a termination of employment or services as provided in Section 4 below or under the Plan. 
 Nothing contained in this Option Agreement or the Plan constitutes a continued employment or service commitment by the Corporation or any of its Subsidiaries, affects the Grantee’s status, if he or she is an
employee, as an employee at will who is subject to termination without cause, confers upon the Grantee any right to remain employed by or in service to the Corporation or any Subsidiary, interferes in any way with the right of the Corporation or any
Subsidiary at any time to terminate such employment or service, or affects the right of the Corporation or any Subsidiary to increase or decrease the Grantee’s other compensation. 
  

 3. Method of Exercise of Option. 
 The Option shall be exercisable by the delivery to the Chief Financial Officer of the Corporation (or such other person as the Administrator may require
pursuant to such administrative exercise procedures as the Administrator may implement from time to time) of 
  

	 	•	 	 a written notice stating the number of shares of Common Stock to be purchased pursuant to the Option or by the completion of such other administrative exercise
procedures as the Administrator may require from time to time; 

  

	 	•	 	 payment in full for the Exercise Price of the shares to be purchased in cash, check or by electronic funds transfer to the Corporation, or (subject to compliance
with all applicable laws, rules, regulations and listing requirements and further subject to such rules as the Administrator may adopt as to any non-cash payment) in shares of Common Stock already owned by the Grantee, valued at their fair market
value on the exercise date, provided, however, that any shares initially acquired upon exercise of a stock option or otherwise from the Corporation must have been owned by the Grantee for at least six (6) months before the date of
such exercise; 

  

	 	•	 	 any written statements or agreements required pursuant to Section 8.1 of the Plan; and 

  

	 	•	 	 satisfaction of the tax withholding provisions of Section 8.5 of the Plan. 

 The Administrator also may, but is not required to, authorize a non-cash payment alternative by notice and third party payment in such manner as may be authorized by the Administrator. 
 The Option will qualify as an ISO only if it meets all of the applicable requirements of the Code. The Option may be rendered a nonqualified stock option
if the Administrator permits the use of one or more of the non-cash payment alternatives referenced above. 
 4. Early
Termination of Option. 
 4.1 Possible Termination of Option upon Change in Control. The Option is subject to
termination in connection with a Change in Control Event or certain similar reorganization events as provided in Section 7.4 of the Plan. 
 4.2 Termination of Option upon a Termination of Grantee’s Employment or Services. Subject to earlier termination on the Expiration Date of the Option or pursuant to Section 4.1 above, if the Grantee ceases to be
employed by or ceases to provide services to the Corporation or a Subsidiary, the following rules shall apply (the last day that the Grantee is employed by or provides services to the Corporation or a Subsidiary is referred to as the Grantee’s
“Severance Date”): 
  

	 	•	 	 other than as expressly provided below in this Section 4.2, (a) the Grantee will have until the date that is 3 months after his or her Severance Date to
exercise the Option (or portion thereof) to the extent that it was vested on the Severance Date, (b) the Option, to the extent not vested on the Severance Date, shall terminate on the Severance Date, and (c) the Option, to the extent
exercisable for the 3-month period following the Severance Date and not exercised during such period, shall terminate at the close of business on the last day of the 3-month period; 

  

	 	•	 	 if the termination of the Grantee’s employment or services is the result of the Grantee’s death or Total Disability (as defined below), (a) the
Grantee (or his beneficiary or personal representative, as the case may be) will have until the date that is 12 months after the Grantee’s Severance Date to exercise the Option, (b) the Option, to the extent not vested on the Severance
Date, shall terminate on the Severance Date, and (c) the Option, to the extent exercisable for the 12-month period following the Severance Date and not exercised during such period, shall terminate at the close of business on the last day of
the 12-month period; 

  

	 	•	 	 if the Grantee’s employment or services are terminated by the Corporation or a Subsidiary for Cause (as defined below), the Option (whether vested or not)
shall terminate on the Severance Date. 

 For purposes of the Option, “Total Disability” means a
“permanent and total disability” (within the meaning of Section 22(e)(3) of the Code or as otherwise determined by the Administrator). 
 For purposes of the Option, “Cause” means that the Grantee: 
  

	 	(1)	has been negligent in the discharge of his or her duties to the Corporation or any of its Subsidiaries, has refused to perform stated or assigned duties or is incompetent in or
(other than by reason of a disability or analogous condition) incapable of performing those duties; 

  

	 	(2)	has been dishonest or committed or engaged in an act of theft, embezzlement or fraud, a breach of confidentiality, an unauthorized disclosure or use of inside information, customer
lists, trade secrets or other confidential information; has breached a fiduciary duty, or willfully and materially violated any other duty, law, rule, regulation or policy of the Corporation, any of its Subsidiaries or any affiliate of the
Corporation or any of its Subsidiaries; or has been convicted of a felony or misdemeanor (other than minor traffic violations or similar offenses); 

  

	 	(3)	has materially breached any of the provisions of any agreement with the Corporation, any of its Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries; or

  

	 	(4)	has engaged in unfair competition with, or otherwise acted intentionally in a manner injurious to the reputation, business or assets of, the Corporation, any of its Subsidiaries or
any affiliate of the Corporation or any of its Subsidiaries; has improperly induced a vendor or customer to break or terminate any contract with the Corporation, any of its Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries;
or has induced a principal for whom the Corporation, any of its Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries acts as agent to terminate such agency relationship. 

  

 In all events the Option is subject to earlier termination on the Expiration Date of the Option or as
contemplated by Section 4.1. The Administrator shall be the sole judge of whether the Grantee continues to render employment or services for purposes of this Option Agreement. 
 Notwithstanding any post-termination exercise period provided for herein or in the Plan, the Option will qualify as an ISO only if it is exercised within
the applicable exercise periods for ISOs under, and meets all of the other requirements of, the Code. If the Option is not exercised within the applicable exercise periods for ISOs or does not meet such other requirements, the Option will be
rendered a nonqualified stock option. 
 5. Non-Transferability. 
 The Option and any other rights of the Grantee under this Option Agreement or the Plan are nontransferable and exercisable only by the Grantee, except as set forth in Section 5.7 of the Plan. 
 6. Notices. 
 Any notice to be given under the
terms of this Option Agreement shall be in writing and addressed to the Corporation at its principal office to the attention of the Secretary, and to the Grantee at the address last reflected on the Corporation’s payroll records, or at such
other address as either party may hereafter designate in writing to the other. Any such notice shall be delivered in person or shall be enclosed in a properly sealed envelope addressed as aforesaid, registered or certified, and deposited (postage
and registry or certification fee prepaid) in a post office or branch post office regularly maintained by the United States Government. Any such notice shall be given only when received, but if the Grantee is no longer employed by the Corporation or
a Subsidiary, shall be deemed to have been duly given five business days after the date mailed in accordance with the foregoing provisions of this Section 6. 
 7. Plan. 
 The Option and all rights of the Grantee under this Option Agreement are subject to the terms and
conditions of the Plan, incorporated herein by this reference. The Grantee agrees to be bound by the terms of the Plan and this Option Agreement (including these Terms). The Grantee acknowledges having read and understanding the Plan, the Prospectus
for the Plan, and this Option Agreement. Unless otherwise expressly provided in other sections of this Option Agreement, provisions of the Plan that confer discretionary authority on the Board or the Administrator do not and shall not be deemed to
create any rights in the Grantee unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the Administrator so conferred by appropriate action of the Board or the Administrator under the Plan
after the date hereof. 
 8. Entire Agreement. 
 This Option Agreement (including these Terms) and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the
subject matter hereof. The Plan and this Option Agreement may be amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and 

 
signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely
affect the interests of the Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. 
 9. Governing Law. 
 This Option Agreement shall
be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to conflict of law principles thereunder. 
 10. Effect of this Agreement. 
 Subject to the Corporation’s right to terminate the Option pursuant to
Section 7.4 of the Plan, this Option Agreement shall be assumed by, be binding upon and inure to the benefit of any successor or successors to the Corporation. 
 11. Counterparts. 
 This Option Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
 12. Section
Headings. 
 The section headings of this Option Agreement are for convenience of reference only and shall not be deemed to alter or
affect any provision hereof.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]