Document:

Severance Compensation Agreement

 Exhibit 10.1 
 MSC.SOFTWARE CORPORATION 
 SEVERANCE COMPENSATION AGREEMENT 
 THIS AGREEMENT, effective April 16, 2007, is between MSC.Software Corporation, a Delaware corporation (the “Company”) and Sam M. Auriemma (the
“Executive”). 
 The Company’s Compensation Committee and Board of Directors has determined that it is appropriate to reinforce and encourage
the continued attention and dedication of members of the Company’s management to their assigned duties without distraction in potentially disturbing circumstances arising from the possibility of a change in control of the Company. 

This Agreement sets forth the severance compensation which the Company agrees it will pay to the Executive if the Executive’s employment with the Company
terminates under one of the circumstances described herein following a Change in Control of the Company (as defined herein). 
  

	 1.
	 Term. This Agreement shall terminate, except to the extent that any obligation of the Company hereunder remains
unpaid as of such time, upon the earliest of (i) December 31st of any year after 2006, provided that either party has given at least 60 days
prior written notice to the other party of its or his intention to terminate this Agreement under this paragraph 1(i); (ii) the termination of the Executive’s employment with the Company based on death, Disability (as defined in
Section 3(b)), Retirement (as defined in Section 3(c)) or Cause (as defined in Section 3(d)) or by the Executive other than for Good Reason (as defined in Section 3(e)); and (iii) two years from the date of a Change in
Control of the Company if the Executive has not terminated his employment for Good Reason as of such time. 

  

	2.	Change in Control. No compensation shall be payable under this Agreement unless and until (a) there shall have been a Change in Control of the Company, while the
Executive is still an employee of the Company and (b) the Executive’s employment by the Company thereafter shall have been terminated in accordance with Section 3. For purposes of this Agreement, a Change in Control of the Company
shall be deemed to have occurred if: 

  

	 	(i)	there shall be consummated any consolidation or merger of the Company and, as a result of such consolidation or merger (x) less than 50% of the outstanding common shares and
50% of the voting shares of the surviving or resulting corporation are owned, immediately after such consolidation or merger, by the owners of the Company’s common shares immediately prior to such consolidation or merger, or (y) any person
(as such term is used in Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) shall become the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of 20% or more of
the surviving or resulting corporation’s outstanding common shares; or 

  

	 	(ii)	any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Company shall be consummated;
or 

  

	 	(iii)	the shareholders of the Company shall approve any plan or proposal for the liquidation or dissolution of the Company; or 

  

	 	(iv)	any person (as such term is used in Section 13(d) and 14(d)(2) of the Exchange Act) shall become the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act)
of 20% or more of the Company’s outstanding common shares; or 

  

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	 	(v)	during any period of two consecutive years, individuals who at the beginning of such period constitute the entire Board of Directors shall cease for any reason to constitute a
majority thereof unless the election or the nomination for election by the Company’s shareholders of each new director was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of
the period. 

  

	3.	Termination Following Change in Control 

  

	 	(a)	If a Change in Control of the Company shall have occurred while the Executive is still an employee of the Company, the Executive shall be entitled to the compensation provided in
Section 4 upon the subsequent termination of the Executive’s employment with the Company by the Executive or by the Company unless such termination is as a result of (i) the Executive’s death; (ii) the Executive’s
Disability (as defined in Section 3(b) below); (iii) the Executive’s Retirement (as defined in Section 3(c) below); (iv) the Executive’s termination by the Company for Cause (as defined in Section 3(d) below); or
(v) the Executive’s decision to terminate employment other than for Good Reason (as defined in Section 3(e) below). 

  

	 	(b)	Disability. If, as a result of the Executive’s incapacity due to physical or mental illness, the Executive shall have been absent from his duties with the Company on a
full-time basis for twelve months and within 30 days after written notice of termination is thereafter given by the Company the Executive shall not have returned to the full-time performance of the Executive’s duties, the Company may terminate
this Agreement for “Disability.” 

  

	 	(c)	Retirement. The term “Retirement” as used in this Agreement shall mean termination by the Company or the Executive of the Executive’s employment based on the
Executive having reached age 65 or such other age as shall have been fixed in any written arrangement regarding the Executive’s retirement established with the Executive’s consent with respect to the Executive. 

  

	 	(d)	Cause. The Company may terminate the Executive’s employment for Cause. For purposes of this Agreement only, the Company shall have “Cause” to terminate the
Executive’s employment hereunder only on the basis of fraud, misappropriation or embezzlement on the part of the Executive. Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for Cause unless and until
there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Company’s Board of Directors at a meeting of the Board called and held
for the purpose (after reasonable notice to the Executive and an opportunity for the Executive, together with the Executive’s counsel, to be heard before the Board), finding that in the good faith opinion of the Board the Executive was guilty
of conduct set forth in the second sentence of this Section 3(d) and specifying the particulars thereof in detail. 

  

	 	(e)	Good Reason. The Executive may terminate the Executive’s employment for Good Reason at any time during the term of this Agreement. For purposes of this Agreement
“Good Reason” shall mean any of the following without the Executive’s express written consent: 

  

	 	(i)	 the assignment to the Executive by the Company of duties inconsistent with the Executive’s position, duties, responsibilities and status with the Company
immediately prior to a Change in Control of the Company, or a 

  

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change in the Executive’s titles or offices as in effect immediately prior to a Change in Control of the Company, or any removal of the Executive from
or any failure to reelect the Executive to any of such positions, except in connection with the termination of his employment for Disability, Retirement or Cause or as a result of the Executive’s death or by the Executive other than for Good
Reason; 

  

	 	(ii)	a reduction by the Company in the Executive’s base salary as in effect on the Date of Termination; 

  

	 	(iii)	any failure by the Company to continue in effect any benefit plan or arrangement (including, without limitation, the Company’s retirement plan, group life insurance plan, and
medical, dental, accident and disability plans) in which the Executive is participating at the time of a Change in Control of the Company (or any other plans providing the Executive with substantially similar benefits) (hereinafter referred to as
“Benefit Plans”), or the taking of any action by the Company which would adversely affect the Executive’s participation in or materially reduce the Executive’s benefits under any such Benefit Plan or deprive the Executive of any
material fringe benefit enjoyed by the Executive at the time of a Change in Control of the Company; 

  

	 	(iv)	any failure by the Company to continue the Executive’s eligibility to participate in annual executive bonus arrangements in which the Executive is participating at the time of
a Change in Control of the Company (or any plans or arrangements providing him with substantially similar benefits) (hereinafter referred to as “Incentive Plans”) or the taking of any action by the Company which would significantly reduce
the Executive’s opportunity to earn incentive compensation which is related to performance results as compared to performance expectations periodically determined by the Company; 

  

	 	(v)	a relocation of the Company’s principal executive offices, or the Executive’s relocation to any place other than the location at which the Executive performed the
Executive’s duties prior to a Change in Control of the Company, except for required travel by the Executive on the Company’s business to an extent substantially consistent with the Executive’s business travel obligations at the time
of a Change in Control of the Company; 

  

	 	(vi)	any failure by the Company to provide the Executive with the number of paid vacation days to which the Executive is entitled at the time of a Change in Control of the Company;

  

	 	(vii)	any material breach by the Company of any provision of this Agreement; 

  

	 	(viii)	any failure by the Company to obtain the assumption in writing of this Agreement by any successor or assign of the Company, unless consent given by Executive;

  

	 	(ix)	any purported termination of the Executive’s employment, which is not effected pursuant to a Notice of Termination satisfying the requirements of Section 3(f), and for
purposes of this Agreement, no such purported termination shall be effective; or 

  

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	 	(x)	the failure of the Company to maintain Directors’ and Officers’ Liability Insurance on terms not materially less favorable to the Executive than the terms of the policy
presently in effect. 

  

	 	(f)	Notice of Termination. Any termination by the Company pursuant to Section 3(b), 3(c) or 3(d) shall be communicated by a Notice of Termination. For purposes of this
Agreement, a “Notice of Termination” shall mean a written notice which shall indicate those specific termination provisions in this Agreement relied upon and which sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive’s employment under the provision so indicated. For purposes of this Agreement, such purported termination by the Company shall not be effective without such Notice of Termination.

  

	 	(g)	Date of Termination. “Date of Termination” shall mean (a) if this Agreement is terminated by the Company for Disability, 30 days Notice of Termination is given
to the Executive (provided that the Executive shall not have returned to the performance of the Executive’s duties on a full-time basis during such 30-day period) or (b) if the Executive’s employment is terminated by the Company for
any other reason, the date on which a Notice of Termination is given; provided that if within 30 days after any Notice of Termination is given to the Executive by the Company the Executive notifies the Company that a dispute exists concerning the
termination, the Date of Termination shall be the date the dispute is finally determined, whether by mutual agreement by the parties or upon final judgment, order or decree of a court of competent jurisdiction (the time for appeal therefrom having
expired and no appeal having been perfected.) 

  

	4.	Compensation Under this Agreement 

  

	 	(a)	If within two years after a Change in Control of the Company, a Notice of Termination is given either by the Company to the Executive or by the Executive to the Company, and if such
termination is not by reason of the Executive’s death, Disability or Retirement, or by the Company for Cause, or by the Executive other than for Good Reason, the Company shall make the following payments to the Executive:

  

	 	(i)	the full base salary to which the Executive is entitled through the Date of Termination; 

  

	 	(ii)	credit for unused vacation calculated at Executive’s then current base salary rate; 

  

	 	(iii)	An amount equal to the Executive’s current Annual Bonus Award under any Company annual incentive plan for the fiscal year in which the Notice of Termination is given,
multiplied by the percentage determined by dividing the number of days in the Company’s fiscal year that have elapsed prior to the date on which the Notice of Termination is given by the total number of days in such fiscal year. As used in this
clause (iii) the Executive’s Annual Bonus Award means the dollar amount which would have been paid to Executive for the fiscal year in which the Notice of Termination is given under the then current Company executive incentive compensation
plan, based on the assumption that the Target Level of performance would be reached by the Company and the Executive. 

  

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	 	(iv)	an amount equal to two and one-half (2.5) times the sum of the Executive’s annualized base salary and Annual Bonus Award (as defined in clause (iii) above) for the
year in which the Notice of Termination is given, provided, however, that the amounts to be paid to the Executive under this clause (iv) shall be reduced by the amount payable to the Executive under clause (iii) of this Section 4(a).

  

	 	(b)	Upon a Change in Control, all stock options granted to Executive will be immediately vested and exercisable. 

  

	 	(c)    (i)	If any payment or distribution by the Company to or for the benefit of the Executive, whether pursuant to the terms of this Agreement or otherwise (a “Payment”), is
subject to the excise tax imposed by Section 4999 of the Internal Revenue Code or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), the Company shall make an additional payment (a “Gross-Up Payment”) to the Executive in an amount such that, after payment by the Executive of all taxes (including any
interest or penalties imposed with respect to such taxes) including, without limitation, any federal, state, or local income and employment taxes and Excise Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed on the Payment. 

  

	 	(ii)	Subject to the provisions of paragraph 4c(iii) hereof, all determinations under this paragraph 4(c), including whether a Gross-Up Payment is required and the amount of the Gross-Up
Payment, shall be made by a certified public accounting firm immediately before the Change in Control occurs (the “Accounting Firm”), which shall provide detailed supporting calculations to both the Company and the Executive within 15
business days after the Change in Control (or any other change in ownership or effective control that triggers application of the Excise Tax) and, if a termination for Good Reason occurs, within 15 days after the termination for Good Reason. All
fees and expenses of the Accounting Firm shall be borne solely by the Company. The initial Gross-Up Payment determined pursuant to this paragraph 4(c)(ii) shall be paid by the Company to the Executive, or tax authority, whichever is required, within
five days after it receives the Accounting Firm’s determination. If the Accounting Firm determines that no Excise Tax is payable by the Executive, it shall furnish the Executive with a written opinion that failure to report the Excise Tax on
the Executive’s applicable federal tax return will not result in the imposition of a negligence or similar penalty. Any determination by the Accounting Firm shall be binding on the Company and the Executive. Notwithstanding the foregoing, as a
result of uncertainty in applying Section 4999 of the Internal Revenue Code, it is possible that the Company will not have made Gross-Up Payments that it should have made hereunder (an “Underpayment”). If the Company exhausts its
remedies pursuant to paragraph 4(c)(iii) hereof and the Executive thereafter is required to pay any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment, inform the Company and the Executive of the Underpayment in writing,
and, within five days of receiving such written report, the Company shall pay the amount of such Underpayment to or for the benefit of the Executive. 

  

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	 	(iii)	The Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment.
Such notification shall be given as soon as practicable but not later than ten business days after the Executive is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is
required to be paid. The Executive shall not pay such claim before the expiration of 30 days following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such is
due). If the Company notifies the Executive in writing before the expiration of such 30-day period that it desires to contest such claim, the Executive shall (1) give the Company any information reasonably requested by the Company relating to
such claim, and (2) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an
attorney selected by the Company, provided that the Company shall pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any tax, including interest and penalties, imposed as a result of such representation and payment of costs and expenses. The Company shall control all proceedings in connection with such contest and may, at its sole option,
either direct the Executive to pay the tax claimed and sue for a refund or to contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any appropriate administrative tribunal or court,
as the Company shall determine; provided, that if the Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Executive, on an interest-free basis, and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any tax, including interest or penalties, imposed with respect to such advance. The Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder, and the Executive shall be entitled to settle or contest any other issue. 

  

	 	(iv)	If, after the Executive receives an advance by the Company pursuant to paragraph 4(c)(iii) hereof, the Executive becomes entitled to receive a refund claimed pursuant to such
paragraph 4(c)(iii), the Executive shall (subject to the Company’s complying with the requirements of such paragraph 4(c)(iii) promptly pay to the Company the amount of such refund (together with any interest thereon, after taxes applicable
thereto). If, after the Executive receives an amount advanced by the Company pursuant to paragraph 4(c)(iii) hereof, a determination is made that the Executive shall not be entitled to any refund claimed pursuant to such paragraph 4(c)(iii), and the
Company does not notify the Executive in writing of its intent to contest such denial of refund before the expiration of 30 days after such determination, the Executive shall not be required to repay such advance, and the amount of such advance
shall offset, to the extent thereof, the amount of the required Gross-Up Payment. 

  

	 	(v)	Any payments otherwise required by this paragraph 4(C) shall be made regardless of whether a termination for Good Reason occurs. 

  

	 	 (d)
	 The amounts required to be paid under Section 4(a) shall be paid by the Company to the Executive in cash in a lump
sum on the 10th day after the Date of 

  

 6 

	 	 
Termination. All payments made to the Executive pursuant to this Agreement or any other agreement or plan of or with the Company shall be made within the
time periods described herein, however, if it is determined by the parties or in the opinion of counsel reasonably acceptable to the Executive and the Company, such determination to be made or opinion provided to the Company no later than thirty
(30) days after the Date of Termination, that payment (or payments) is or reasonably may be treated as deferred compensation within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), except
in the case of the Executive’s death, the payment (or payments) shall be delayed (without interest) to a date no earlier than, and shall be paid as soon as administratively practicable after, six (6) months after the Executive’s
“separation from service,” as that term is defined in Section 409A of the Code. 

  

	 	(e)	Any payments required under this Section 4 shall be paid net of applicable federal, state and local tax withholding. 

  

	 	(f)	If the Company is required to make payments to the Executive under Section 4(a), the Company, until the earlier of (i) two and one-half (2.5) years after the Date of
Termination or (ii) commencement of full-time employment by the Executive with a new employer, shall maintain in full force and effect, for the continued benefit of the Executive, medical and dental programs or arrangements in which the
Executive was entitled to participate immediately prior to the Date of Termination, provided that continued participation by the Executive is possible under the general terms and provisions of such plans and programs. 

  

	 	(g)	Except for the payment referred to in clause (i) of Section 4(a) none of the payments to the Executive under this Section 4 shall be counted for the purpose of
computing the Executive’s benefits under any pension, profit sharing, deferred compensation or other employee benefit plan maintained by the Company. 

  

	5.	No Obligation to Mitigate Damages; No Effect on Other Contractual Rights. 

 The provisions of this Agreement, and any payment provided for hereunder, shall not reduce any amounts otherwise payable, or in any way diminish the Executive’s existing rights, or rights which would accrue
solely as a result of the passage of time, under any Benefit Plan, Incentive Plan or Securities Plan, employment agreement or other contract, plan or arrangement. 
  

	6.	Successor to the Company. 

  

	 	(a)	 The Company will require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company, by agreement in form and substance satisfactory to the Executive, expressly, absolutely and unconditionally to assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if such succession or assignment had not taken place. Any failure of the Company to obtain such agreement prior to the effectiveness of any such succession or assignment shall be a material breach of this
Agreement and shall entitle the Executive to terminate the Executive’s employment for Good Reason. As used in this Agreement, “Company” shall mean the Company as herein before defined and any successor or assign to its business and/or
assets as aforesaid which executes and delivers the agreement provided for in this Section 6 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. If at any time during the term of this
Agreement the Executive is employed by any corporation, a majority of the voting securities of which is then 

  

 7 

 
owned by the Company, “Company” as used in Section 3, 4, 12 and 13 hereof shall in addition include such employer. In such event, the Company
agrees that it shall pay or shall cause such employer to pay any amounts owed to the Executive pursuant to Section 4 of this Agreement. 
  

	 	(b)	This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal and legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Executive should die while any amounts are still payable to him hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the
Executive’s devisee, legatee, or other designee or, if there be no such designee, to the Executive’s estate. 

  

	7.	Non-compete. Without the consent in writing of the Board, Executive will not, at any time during employment with the Company and for a period of two and one-half
(2.5) years following termination of Executive’s employment for any reason (except as stated below), engage in the management or control of, or serve as an employee, consultant, agent, proprietor, principal, partner, major shareholder,
corporate officer or director of, any person, firm, corporation or business (collectively, as “Competing Entity”) that directly and substantially competes with the products and services of the Company. For purposes of this Agreement, a
Competing Entity is limited to an entity that derives a significant amount or percentage of its total annual revenue from the sale of virtual product development software and related services and competes in one or more of the same geographic
markets as the Company. It is agreed that the ownership of not more than two percent (2%) of the equity securities of any company having securities listed on an exchange or regularly traded in the over-the-counter market shall not, of itself,
be deemed inconsistent with this Section 7. 

  

	8.	Notice. For purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given
when delivered or mailed by United States certified or registered mail, return receipt requested, postage prepaid, as follows: 

  

			
	 If to the Company:
	  	MSC.Software Corporation
		  	Executive Vice President, Business Administration,
		  	Legal Affairs and Secretary
		  	2 MacArthur Place
		  	Santa Ana, CA 92707
		
	 If to the Executive:
	  	Sam M. Auriemma
		  	4 Andover Court
		  	Laguna Niguel, CA 92677

 or such other address as either party may have furnished to the other in writing in accordance
herewith, except that notices of change of address shall be effective only upon receipt. 
  

	9.	Miscellaneous. No provisions of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by the
Executive and Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar
or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party, which are not
set forth expressly in this Agreement. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 

  

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	10.	Validity. The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect. 

  

	11.	Counterparts. This agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and
the same instrument. 

  

	12.	Legal Fees and Expenses. The Company shall pay all legal fees and expenses, which the Executive may incur as a result of the Company’s contesting the validity,
enforceability or the Executive’s interpretation of, or determinations under, this Agreement. 

  

	13.	Confidentiality. The Executive shall retain in confidence any and all confidential information known to the Executive concerning the Company and its business so long as such
information is not otherwise publicly disclosed. 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written. 
  

									
	ATTEST:	 		 	
				
	/s/ Margaret E. Williams	 		 	By:	 	/s/ Sam M. Auriemma
		 		 		 		 	Sam M. Auriemma
				
		 		 	By:	 	/s/ John A. Mongelluzzo,
		 		 		 		 	John A. Mongelluzzo,
		 		 		 		 	Executive Vice President, Business
Administration, Legal Affairs and
Secretary

  

 9Form of Nonqualified Stock Option Agreement

 Exhibit 10.2 
 MSC.SOFTWARE CORPORATION 
 2006 PERFORMANCE INCENTIVE PLAN 
 NONQUALIFIED STOCK OPTION AGREEMENT 
 THIS NONQUALIFIED STOCK OPTION AGREEMENT (this “Option Agreement”) by and between MSC.SOFTWARE CORPORATION, a Delaware corporation (the “Corporation”), and the “Grantee”
evidences the nonqualified 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 
  

			
	 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 Nonqualified 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. 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. 

	 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 NONQUALIFIED STOCK OPTION 
  

	1.	Vesting; Limits on Exercise; Incentive Stock Option Status. 

 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. 

  

	 	•	 	 Nonqualified Stock Option. The Option is a nonqualified stock option and is not, and shall not be, an incentive stock option within the meaning of
Section 422 of the Code. 

  

	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 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. 
  

	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. 
  

	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. 

 PLEASE SIGN THE CONSENT BELOW AND FAX IT TO THE ATTENTION OF MARGARET WILLIAMS AT MSC.SOFTWARE CORPORATION:
(714) 784-4182. 
 CONSENT OF SPOUSE 
 In consideration of the execution of the foregoing Option Agreement by MSC.Software Corporation,
I,                                        
, the spouse of                                  , the Participant therein named,
do hereby join with my spouse in executing the foregoing Option Agreement and do hereby agree to be bound by all of the terms and provisions thereof and of the Plan. 
 Dated:                                 

  

	
	
	  
	Signature of Spouse
	
	  
	Print Name

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