Document:

Exhibit 10.13

 

VENDOR
PROGRAM AGREEMENT

 

THIS VENDOR PROGRAM
AGREEMENT (“Agreement”) is dated as of March 29, 1990 by and between
GENERAL ELECTRIC CAPITAL CORPORATION (“GE CAPITAL”), a New York corporation,
with an address at 55 Federal Road, P.O. Box 3199, Danbury, CT 06813-3199,
attn: Manager of Operations, Vendor Equipment Financing, and ASPEN TECHNOLOGY,
INC., its successors and assigns (“COMPANY”), a Massachusetts corporation, with
its principal place of business and address at 251 Vassar Street, Cambridge, MA
02139, attn: Ms. Mary A. Dean, Vice President - Finance.

 

R
E C I T A L S

 

COMPANY and GE CAPITAL are
entering into this Agreement with the principal objective of setting forth the
terms and conditions upon which GE CAPITAL will purchase, and COMPANY will
sell, the payments provided under certain Transactions, and all right, title
and interest of COMPANY in and to such Transactions to the extent the same
secure or benefit such payments (the “Program’) relating to the licensing of
certain computer software products and services licensed by COMPANY (“Software”).

 

NOW, THEREFORE, in
consideration of the above premises and of the representations, warranties and
agreements contained herein, the parties hereby agree as follows:

 

1.                                       DEFINITIONS.

 

(a)                                  “Agreement”
means this Vendor Program Agreement and any riders, addenda, and written
amendments hereto or thereto.

 

(b)                                 “Customer”
means a qualified customer of COMPANY who is an obligor under a Transaction or
guarantor of such Customer.

 

(c)                                  “Default” means
a breach by COMPANY of any representation, warranty, covenant, terM or
condition of this Agreement.

 

(d)                                 “Discount Rate”
means the rate of interest at which GE CAPITAL discounts the payments remaining
under a Transaction which are remaining to be paid on the date GE CAPITAL
purchases such Transaction from the due date of such payments to the date of
such purchase.

 

(e)                                  “Discounted
Value” means the amount GE CAPITAL is willing to pay for the payments remaining
to be paid under a Transaction.

 

(f)                                    “Event of Cancellation”
shall, with respect to a Transaction, refer to (i) a Material Adverse
Change in Financial Condition, business or operations of COMPANY since the date
of this Agreement or of the Customer since the date of the related Offer
Document Package; or (ii) the occurrence of an event which causes a
representation made by Customer, COMPANY or any other party in connection with
the Transaction or under this Agreement to be or become false or misleading in
any material respect when made or, although true when made, will not be true
and correct at the time Software related to such Transaction is to be accepted
by the Customer; or 

 

 

(iii) a breach of any term of such
Transaction, or of any related guaranty or credit support agreement, or any
Default; or (iv) a notification by a Customer to COMPANY or to GE CAPITAL
of its intent to cancel all or any part of the Transaction.

 

(g)                                 “Final Document
Package” means such other and further documents as GE CAPITAL shall from time
to time require in accordance with its standard procedures for the Program in
order to purchase a Transaction and to pay the Discounted Value of the Software
to COMPANY.

 

(h)                                 “Material
Adverse Change in Financial Condition” means a significant negative change in
the balance sheet or profit and loss statements, from the balance sheet or
profit and loss statements delivered to GE CAPITAL by COMPANY on or before the
date of this Agreement.

 

(i)                                     “Offer Document
Package” means an application (including credit information concerning the
Customer) and related documents from time to time required by GE CAPITAL in
accordance with its standard procedures for the Program to initiate its
consideration of a proposed Transaction.

 

(j)                                     “Transaction”
means the licensing of Software (and the guaranty thereof) by a Customer in the
form of a Software License Agreement or other document approved by GE CAPITAL
from time to tine.

 

2.                                       PURCHASE OF
TRANSACTIONS.  GE CAPITAL and COMPANY
agree that, subject to the terms and provisions hereof, and provided that no
Default has occurred, GE CAPITAL may purchase, and COMPANY may sell, the
payments provided under certain Transactions, together with all right, title
and interest of the COMPANY in and to such Transactions to the extent the same
secure or benefit such payments.  Nothing
contained herein shall require COMPANY to sell such payments or require GE
CAPITAL to purchase the same or approve any Customer referred by COMPANY.

 

3.                                       TRANSACTIONS.  At its discretion, COMPANY shall complete and
deliver to GE CAPITAL an Offer Document Package.  Upon receipt thereof, GE CAPITAL shall review
and either approve or reject the Offer Document Package and shall notify
COMPANY of its determination.  Upon
notification of approval by GE CAPITAL, COMPANY shall obtain and deliver to GE
CAPITAL the Final Document Package.

 

4.                                       OBLIGATION TO
PURCHASE.  Provided that:  (a) GE CAPITAL has not previously
revoked its approval of a Transaction; (b) no Default has occurred; (c) GE
CAPITAL has received the Final Document Package; and (d) COMPANY agrees to
sell the Transaction for the Discounted Value quoted by GE CAPITAL, GE CAPITAL
shall pay COMPANY the Discounted Value.

 

5.                                       REVOCATION OF
APPROVAL.  Notwithstanding anything to
the contrary contained herein, GE CAPITAL may revoke its agreement to purchase
a Transaction if either (a) GE CAPITAL has not received the Final Document
Package within sixty (60) days after the date GE CAPITAL notified the COMPANY
of approval of a Transaction, or (b) prior to the receipt by GE CAPITAL of
the Final Document Package or payment by GE CAPITAL of the 

 

2

 

Discounted Value, GE CAPITAL determines, in
its good faith judgment, that an Event of Cancellation has occurred.  Upon revocation of its agreement to purchase
a Transaction, GE CAPITAL shall have no further liability to COMPANY in
connection with the Transaction.

 

6.                                       GENERAL
ADMINISTRATIVE SERVICES.  GE CAPITAL will
provide general administrative services in connection with the Transactions,
including but not limited to billing and collecting.  GE CAPITAL shall have the right to deal with
all Transactions and Customers in the sole exercise of its business judgment,
and, without limiting the generality of the foregoing, may (a) amend any
Transaction or renew or extend the time for payment or performance or grant any
other indulgence to any Customer; and (b) make any settlements or
compromises therewith; (c) demand additional collateral or release its
lien upon any Software; (d) restructure, defer or otherwise alter payment
terms; and (e) transfer or assign any of its rights or obligations in
regard of any Transaction or any Software. 
GE CAPITAL’s and COMPANY’s rights and obligations hereunder shall remain
unaffected by any such activity.  In the
event COMPANY receives any payment on a Transaction, COMPANY shall promptly
forward such payment to GE CAPITAL. 
COMPANY hereby irrevocably appoints GE CAPITAL its attorney-in-fact to
act in its name and stead in regard of the Transactions, including without
limitation the right to endorse, or sign COMPANY’S name on all checks,
collections, receipts or other documents with regard to the Transactions, as GE
CAPITAL deems necessary or appropriate to protect its right, title and interest
in and to the Transactions and the security intended to be afforded thereby and
hereby.

 

7.                                       REPRESENTATIONS
AND WARRANTIES.  COMPANY hereby
represents, warrants and covenants to GE CAPITAL, its successors and assigns,
as of the date hereof, and of the Offer Document Package and the Final Document
Package in respect of each Transaction pursuant hereto, that:

 

(a)                                  COMPANY is a
duly organized and validly existing corporation and has full power to enter
into this Agreement and to carry out the transactions contemplated hereby;

 

(b)                                 the execution
and delivery of this Agreement and the performance by COMPANY of the
transactions contemplated hereby have been duly authorized by all necessary
corporate action;

 

(c)                                  this Agreement
constitutes a legal, valid and binding obligation of COMPANY enforceable in
accordance with its terms;

 

(d)                                 neither the
execution of this Agreement nor the consummation of the transactions
contemplated hereby will constitute a violation or default of any statute,
rule, or decree of any court, administrative agency or governmental body to
which COMPANY is or may be subject;

 

(e)                                  all documents
relating to a Transaction to which COMPANY is a party or by which it is bound
will be genuine, legal, valid, and binding obligations of COMPANY, enforceable
in accordance with their terms and COMPANY will not amend, change, settle, or
compromise any Transaction without the prior written consent of GE CAPITAL;

 

(f)                                    there are and
will be no agreements between COMPANY or its agents and any Customer in
connection with any Transaction, except as contained therein, and no express or

 

3

 

implied warranties have been or will be made
by COMPANY or its agents to such Customer, except as contained in the
Transaction documents;

 

(g)                                 COMPANY has not
received any license fees or other monies from any Customer in respect of
payments due under any Transaction following the date of purchase by GE CAPITAL
and will immediately remit such funds to GE CAPITAL if any are received;

 

(h)                                 GE CAPITAL
shall have a first priority security interest in the customer’s right to use
the Software governed by any Transaction, free and clear of all liens, claims,
security interests and encumbrances;

 

(i)                                     all documents
relating to a Transaction are the legal, valid and binding obligation of the
Customer named therein, enforceable according to their respective terms, and
the signature of the named Customer is genuine;

 

(j)                                     COMPANY and its
agents have not participated in and have no knowledge of any fraudulent act in
connection with any Transaction or with respect to any Customer;

 

(k)                                  the Software
shall have been delivered to and accepted by the named Customer, properly
installed at the location indicated in the applicable Offer Document Package,
and is, and shall be maintained in good working order, condition and repair,
conforming to specifications;

 

(l)                                     all credit or
other information reasonably relevant to a credit determination concerning the
Customer known to COMPANY will have been disclosed to GE CAPITAL;

 

(m)                               COMPANY
possesses and will maintain throughout the term of any Transaction adequate
licenses and permits to grant licenses with respect to or rights to the use of
the related Software;

 

(n)                                 all applicable
sales, use, or property taxes which may apply to the value, sale or use of the
Software (other than those assessed or imposed at or after the time GE CAPITAL
purchases the Transactions), shall have been paid or will be timely remitted by
COMPANY to the appropriate taxing authority and COMPANY will on request provide
GE CAPITAL with proof of such payment as promptly as possible, and the payments
being purchased by GE CAPITAL are and shall remain net or free of any sales,
use or property taxes due to any taxing authority;

 

(o)                                 the execution
and delivery by COMPANY of this Agreement does not conflict with or constitute
a material default with respect to any indenture, loan agreement, mortgage,
lease, deed or other agreement to which it is a party or by which it is bound,
and there are no suits or proceedings pending or, to the knowledge of COMPANY,
threatened in any court or before any regulatory commission, board or other
administrative or governmental agency against or affecting COMPANY which could
materially impair COMPANY’S ability to perform its obligations hereunder;

 

(p)                                 the most recent
financial statements of COMPANY dated 12/31/89 and delivered to GE CAPITAL
fairly represent the position of COMPANY as of 12/31/89 and the results of
operations of COMPANY for the periods covered thereby, all in conformity with
generally 

 

4

 

accepted accounting principles applied on a
consistent basis, and since the date of the latest such financial statements,
there has been no Material Adverse Change in the Financial Condition of
COMPANY; and

 

(q)                                 COMPANY will
promptly deliver to GE CAPITAL such information concerning the financial or
other condition of COMPANY as GE CAPITAL may reasonably request from time to
time, and will deliver to GE CAPITAL within one hundred twenty (120) days of
the close of each fiscal year, the balance sheet and profit and loss statement
of COMPANY (including the consolidated taxpayer group of which it is a part),
certified by a recognized firm of certified public accountants, and, within
ninety (90) days of the close of each fiscal quarter of COMPANY, in reasonable
detail, copies of the quarterly financial report of COMPANY, each certified by
its chief financial officer.

 

8.                                       INDEMNIFICATION.  COMPANY shall indemnify and hold harmless GE
CAPITAL, its affiliates, subsidiaries, employees, officers, directors and
agents, from and against any and all losses, claims by or against GE CAPITAL,
liabilities, demands and expenses whatsoever, including without limitation
reasonable attorneys’ fees and costs, arising out of or in connection with any breach
by COMPANY of its representations, warranties or obligations hereunder or with
any act, failure to act, omission, representation or misrepresentation
(including but not limited to those in connection with the sale, use,
operation, ownership, possession, servicing or maintenance of the Software and
conduct relating thereto) by COMPANY, its affiliates, subsidiaries or dealers
or the employees, officers or agents of any of the foregoing.  GE CAPITAL shall not be required to attempt
to recover from any Customer through legal proceedings or otherwise as a
condition to receiving the benefits hereunder. 
All indemnities and obligations under this Section 8 shall survive
the expiration or termination of this Agreement and the expiration or
termination of any Transaction.

 

9.                                       RECOURSE AND
SPECIAL TRANSACTION WARRANTIES.

 

(a)                                  COMPANY agrees
to repurchase from GE CAPITAL its right, title and interest in and to the
related Transaction and the payments purchased thereunder, in accordance with
the terms and conditions set forth below:

 

(i)                                     If a Customer
has defaulted in the performance of any obligation to make payments under the
Transaction (regardless of the reason therefor) which default has remained
uncured for a period of thirty (30) days, or in the event of a Default under
this Agreement, COMPANY shall, within ten (10) days of receipt of notice
thereof, pay GE CAPITAL the Repurchase Amount applicable thereto.  Upon receipt of such payment, GE CAPITAL
shall sell and transfer to COMPANY all of its right, title and interest in and
to the Transaction and the payments purchased thereunder, AS IS, WHERE IS,
without recourse or warranty to or from GE CAPITAL.  If the repurchase obligation arises out of
Default by COMPANY hereunder, COMPANY shall be obligated to repurchase all
Transactions subject to this Agreement.

 

(ii)                                  See Attachment
I.

 

5

 

(iii)                               The Repurchase
Amount means an amount equal to the total of the following amounts due or to
become due under the Transaction:  (A) all
payments accrued and unpaid under the Transaction as of the date of receipt by
GE CAPITAL of the Repurchase Amount (the “Repurchase Date”), together with
interest at the Discount Rate from the due dates of such payments to the
Repurchase Date, plus (B) that amount reflected on the books and records
of GE CAPITAL as gross investment in finance receivables with respect to the
Transaction as of the Repurchase Date, less the amount so reflected as unearned
income with respect to such Transaction, plus (C) any out-of-pocket
expenses (including actual attorneys’ fees) incurred by GE CAPITAL prior to the
Repurchase Date.  Interest shall accrue
on the Repurchase Amount from the due date thereof until paid in full at the
rate of 18% per annum.

 

(b)                                 COMPANY hereby
represents, warrants and covenants to GE CAPITAL, its successors and assigns,
as of the date of the Final Document Package in respect of each Transaction,
that (i) GE CAPITAL shall have received an original of the documentation
for such Transaction; (ii) all other originals of such documentation are
in the exclusive possession of COMPANY or, to the best of COMPANY’S knowledge,
the Customer for such Transaction; (iii) all originals of such
documentation in the possession of COMPANY shall be stamped with a legend on
the cover page and each signature page as follows:  “Aspen Technology, Inc. has transferred
and assigned all of its right, title and interest in this Agreement and the
payments hereunder to General Electric CAPITAL Corporation, 55 Federal Road, P.O. Box
3199, Danbury, CT 06813-3199, Attn: 
Manager-Operations.”

 

10.                                 TERM AND
TERMINATION.  This Agreement shall be
effective upon execution by GE CAPITAL and COMPANY and shall continue from such
effective date unless and until terminated by either party at any time upon
sixty (60) days prior written notice; provided that either party may terminate
this Agreement immediately upon notice to the other in the event of a breach by
the other party.  Upon termination or
expiration of this Agreement, the obligations of the parties with respect to
Transactions not approved by GE CAPITAL shall cease.

 

11.                                 MISCELLANEOUS.  (a)  GE CAPITAL and COMPANY acknowledge
that they are separate entities, each of which has entered into this Agreement
for independent business reasons. 
COMPANY shall have no right or authority to, and will not attempt to,
accept collections, repossess or consent to the return of the Software (other
than for repairs) or modify the terms of any Transaction in any way whatsoever.

 

(b)                                 The rights and
obligations of COMPANY hereunder may not be assigned without the written
consent of GE CAPITAL, provided that COMPANY may assign its rights to receive
money or other payments under this Agreement.

 

(c)                                  The provisions
of this Agreement and the rights and obligations of the parties hereto shall
survive the execution and delivery hereof, and except insofar as they relate to
purchasing further Transactions, shall survive the termination of this
Agreement.

 

6

 

(d)                                 Notices to
COMPANY or GE CAPITAL under this Agreement shall be deemed to have been given
if mailed, postage prepaid, by first class, overnight delivery service or by
registered or certified mail, return receipt requested, to the other party at
the address first stated above or such other address as such party may have
provided by notice.

 

(e)                                  The parties
agree that this Agreement has been executed and delivered in, and shall be
construed in accordance with the laws (other than the choice of law provisions)
of, the State of New York.

 

(f)                                    If at any time
any provision of this Agreement shall be held by any court of competent
jurisdiction to be illegal, void or unenforceable, such provision shall be of
no force and effect, but the illegality or unenforceability of such provision
shall have no effect upon and shall not impair the enforceability of any other
provision of this Agreement.

 

(g)                                 This Agreement
constitutes the entire agreement between the parties concerning the subject
matter hereof and incorporates all representations made in connection with
negotiation of the same.  The terms
hereof may not be terminated, amended, supplemented or modified orally, but
only by an instrument duly executed by each of the parties hereto.

 

(h)                                 This Agreement
and any amendments hereto shall be binding on and inure to the benefit of the
parties hereto and their respective permitted successors and assigns.

 

(i)                                     In the event
there is any conflict between this Agreement and any ancillary agreements with
respect to any Transaction or Software, the terms and conditions of this
Agreement shall control.

 

IN WITNESS WHEREOF, the parties have caused this
Agreement to be executed by their respective duly authorized representatives on
the date set forth below.

 

	
  ASPEN
  TECHNOLOGY, INC.

  	
  GENERAL
  ELECTRIC CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  [Illegible]

  	
   

  	
  By:

  	
  /s/
  [Illegible]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice
  President Finance

  	
   

  	
  Title:

  	
  VP &
  GM

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  3/29/90

  	
   

  	
  Date:

  	
  3/30/90

  

 

7

 

ATTACHMENT I

 

9 (a) (ii)                                                        If COMPANY
becomes insolvent, is unable to pay debts as they mature, fails to operate as a
going concern, files under Title 11 of the United States Code or any successor
or similar federal or state statute, makes an assignment for the benefit of
creditors, has an appointment of a receiver, dissolution or change in the
corporate structure, or in a material portion of the stock ownership, COMPANY
shall, within 10 days of receipt of notice thereof, pay GE CAPITAL the
applicable Repurchase Amount.

 

8Exhibit 10.13(a)

 

RIDER NO. 1

To

VENDOR PROGRAM AGREEMENT

DATED AS OF MARCH 29, 1990

BY AND BETWEEN

GENERAL ELECTRIC CAPITAL CORPORATION (“GE CAPITAL”)

AND

ASPEN TECHNOLOGY, INC. (“COMPANY”)

 

THIS RIDER is hereby
incorporated into and made a part of the above referenced Vendor Program
Agreement (the “Agreement”) and is subject to all the terms and conditions
thereof.  All terms used and not defined
herein shall have the meanings set forth in the Agreement.

 

WHEREAS, COMPANY and GE
CAPITAL wish to amend the Agreement to amend certain recourse provisions and to
further enhance the operation of the Program.

 

NOW, THEREFORE, in
consideration of the above premises, the parties hereby agree as follows:

 

1.                                      RECOURSE
OBLIGATIONS.  Section 9(a) of
the Agreement is hereby amended in its entirety to read as follows:

 

“(a)                           Upon the occurrence of any
event specified in subparagraphs (i) through (iv) below, COMPANY
agrees to repurchase from GE CAPITAL all of GE CAPITAL’s right, title and
interest in and to the applicable Transaction and the payments purchased
thereunder in accordance with the terms and conditions set forth below:

 

(i)                                     a default in the performance
of any obligations under the applicable Transaction by any Customer who is not
located in the United States;

 

(ii)                                  any alleged breach by
COMPANY of any representation, warranty or obligation of COMPANY contained in
the applicable Transaction or any other agreement relating to the Software,
including any service agreement, which involves the performance of the Software
or COMPANY’s obligation to provide maintenance, support or services with
respect thereto (a “Service Default”). 
Prior to repurchasing GE CAPITAL’s interest in the applicable
Transaction pursuant to the terms and conditions set forth below in the event of
a Service Default, COMPANY may elect to attempt to cure the Service Default for
a period of sixty (60) days after written notice thereof by GE CAPITAL to
COMPANY.  During such sixty (60) day
period, COMPANY shall promptly remit to GE CAPITAL all payments then due under
the applicable Transaction.  If the
Service Default is not cured by the sixtieth day following written notice from
GE CAPITAL, COMPAWY shall repurchase the applicable Transaction in accordance
with the terms and conditions set forth below.

 

(iii)                               a Default by COMPANY under
this Agreement, or

 

(iv)                              COMPANY becomes insolvent,
is unable to pay its debts as they mature, fails to operate as a going concern,
files under Title 11 of the United States Code or any successor or 

 

 

similar federal or state statute, makes an assignment for the benefit
of creditors, has an appointment of a receiver, or is subject to a dissolution
or a change in its corporate structure or in a material portion of

 

(v)                                 Upon the occurrence of any
of the events described in subparagraphs (i) through (iv) above,
COMPANY shall, within ten (10) days of receipt of written notice thereof
(or sixty (60) days in the event of a Service Default which COMPANY has elected
to cure pursuant to subparagraph (ii) above), pay GE CAPITAL the
Repurchase Amount applicable thereto. 
Upon receipt of such payment, GE CAPITAL shall sell and transfer to
COMPANY all of its right, title and interest in and to the applicable
Transaction and the payments purchased thereunder, AS IS, WHERE IS, without recourse
or warranty to or from GE CAPITAL.  If
the repurchase obligation arises out of a Default by COMPANY hereunder, COMPANY
shall be obligated to repurchase all Transactions subject to this Agreement.

 

(vi)                              The Repurchase Amount means
an amount equal to the total of the following amount due or to become due under
the applicable Transaction:  (A) all
payments accrued and unpaid under such Transaction as of the date of receipt by
GE CAPITAL of the Repurchase Amount (the “Repurchase Date”), together with interest
at the Discount Rate from the due dates of such payments to the Repurchase
Date, plus (B) that amount reflected on the books and records of GE
CAPITAL as gross investment in finance receivables with respect to such
Transaction as of the Repurchase Date, less the amount so reflected as unearned
income with respect to such Transaction, plus (C) any out-of-pocket
expenses (including actual attorneys’ fees) incurred by GE CAPITAL prior to the
Repurchase Date.  Interest shall accrue
on the Repurchase Amount from the due date thereof until paid in full at the
rate of eighteen percent (18%) per annum.”

 

2.                                      NO
FURTHER AMENDMENTS.  The
provisions of this Rider No. 1 shall be in addition to, and not in the
place of any other provisions of the Agreement Except as specifically amended
herein, all provisions of the Agreement and the obligations of the parties
pursuant thereto shall remain in full force and effect.

 

IN WITNESS WHEREOF, the parties
have caused this Rider No. 1 to be executed by their duly authorized representatives
as of the dates set forth below.

 

	
  ASPEN
  TECHNOLOGY, INC.

  	
  GENERAL
  ELECTRIC CAPITAL

  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name
  and Title – Please Print

  	
   

  	
  Name
  and Title – Please Print

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
  Date

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