Document:

Exhibit 10.2

 

STOCK
PURCHASE AGREEMENT

 

THIS
STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of February 10,
2005 (the “Effective Date”), between MSC.Software Corporation, a
Delaware corporation (the “Corporation”), and William J. Weyand (the “Executive”).

 

W I T N E S S E T H

 

WHEREAS, the
Corporation and the Executive desire to enter into an agreement pursuant to
which the Executive shall purchase, and the Corporation shall sell, shares of
the Corporation’s common stock, par value $0.01 per share (the “Common Stock”);

 

NOW,
THEREFORE, in consideration of the mutual promises and covenants made herein and
the mutual benefits to be derived herefrom, the parties agree as follows:

 

1.                                       Shares.

 

(a)                                  The Corporation shall authorize the
issuance and sale to the Executive of up to 50,000 shares of its Common Stock
or such lesser number as he shall elect to purchase pursuant to the terms and
conditions hereof.

 

(b)                                 Upon execution and delivery of this
Agreement and the Employment Agreement, dated concurrently herewith, between
the Corporation and Executive (the “Employment Agreement”), the
Executive shall have the right to purchase 50,000 or a lesser number of shares
of Common Stock (the “Shares”), at a price per share equal to the
closing price of a share of Common Stock as reported on the composite tape for
securities listed on the New York Stock Exchange for the Closing Date;
provided, however, that if the Common Stock is not listed on the New York Stock
Exchange on the Closing Date, as defined in Section 1(d), the price per
share shall be equal to the closing price of a share of Common Stock as
reported for the principal public securities market in which the Common Stock
is then trading on such Closing Date (the “Right to Purchase”).

 

(c)                                  The Executive’s Right to Purchase shall
be exercisable at any time during the 15-day period following the date of this
Agreement; provided, however, the Right to Purchase, to
the extent not already exercised, shall terminate if the Executive ceases to be
employed by the Corporation during such 15-day period.

 

(d)                                 If the Executive wishes to exercise his
Right to Purchase, he must provide written notice to the Corporation prior to
the expiration of the 15-day period specified in Section 1(c) above.  The notice shall set forth the number of
Shares he wishes to acquire and the proposed closing date (the “Closing Date”)
for the acquisition (in no case shall such Closing Date be less than two (2)
business days or more than five (5) business days following such notice).

 

 

(e)                                  On the Closing Date, the Corporation
shall deliver to the Executive a certificate representing the number of Shares
that the Executive elected to purchase pursuant to the written notice delivered
pursuant to Section 1(d), and the Executive shall deliver to the Corporation
payment for such Shares by a cashier’s or certified check or wire transfer of
funds in the amount of consideration determined in accordance with Section 1(b).  The shares shall be fully paid and
non-assessable.

 

(f)                                    Neither the Shares, nor any interest
therein or amount payable in respect thereof, may be sold, assigned,
transferred, pledged or otherwise disposed of, alienated or encumbered, either
voluntarily or involuntary, until the earliest to occur of (i) the
second anniversary of the Effective Date, (ii) the day upon which the Grantee’s
employment with the Corporation terminates under any of the circumstances
described in Section 5.3(b) or 5.3(c) of the Employment Agreement and the
Grantee is entitled to the severance benefits provided thereunder (after having
met the requirements thereunder, including, without limitation, having provided
the required release as contemplated by the Employment Agreement), or (iii)
immediately preceding a Change in Control Event (as such term is defined in the
Corporation’s 2001 Stock Option Plan (the “2001 Plan”) or a Going
Private Transaction (as defined below).  The transfer restrictions in the
preceding sentence shall not apply to transfers to the Corporation.

 

(g)                                 In connection with each purchase and
sale of the Shares pursuant hereto, the Executive represents and warrants to
the Corporation that:

 

(i)                                     the Shares to be acquired by the
Executive pursuant to this Agreement shall be acquired for the Executive’s own
account and not with a view to, or in connection with, a distribution thereof
in violation of the Securities Act of 1933, as amended (the “Securities Act”),
or any applicable state securities laws, and the Shares will not be disposed of
in contravention of the Securities Act or any applicable state securities laws;

 

(ii)                                  the Executive is an “accredited investor”
as such term is defined in Rule 501 promulgated under the Securities Act and is
sophisticated in financial matters;

 

(iii)                               the Executive is able to bear the economic
risk of his investment in the Shares for an indefinite period of time because
the Shares have not been registered under the Securities Act and, therefore,
cannot be sold unless subsequently registered under the Securities Act or an
exemption from such registration is available;

 

(iv)                              the Executive has had the opportunity to
ask questions of, and receive answers from, the Corporation and its management
concerning the terms and conditions of the offering of the Common Stock and to
obtain information regarding the Corporation’s condition (financial and
otherwise) and operations; and

 

(v)                                 this Agreement and each of the other
agreements contemplated hereby to which such Executive is a party constitute
legal, valid and binding obligations of the Executive, enforceable in
accordance with their terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and limitations on the availability of equitable
remedies, and the execution, delivery and performance of this Agreement and
such other agreements by such Executive does not and

 

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shall not conflict with, violate or cause a
breach of any agreement, contract or instrument to which the Executive is a
party or any judgment or decree to which the Executive is subject;

 

(h)                                 As an inducement to the Executive to
enter into this Agreement and purchase the Shares, the Corporation hereby
represents and warrants to the Executive that:

 

(i)                                     The Corporation is a corporation duly
organized, validly existing and in good standing under the laws of Delaware and
is qualified to do business in every jurisdiction in which the failure to so
qualify might reasonably be expected to have a material adverse effect on the
financial condition, operating results, assets, operations or business
prospects of the Corporation.

 

(ii)                                  The Corporation has full power and
authority to execute and deliver this Agreement and to perform its obligations
hereunder.  This Agreement and each of
the other agreements contemplated hereby to which the Corporation is a party
constitute legal, valid and binding obligations of the Corporation, enforceable
in accordance with their terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and limitations on the availability of equitable
remedies.  The execution, delivery and
performance of this Agreement and all other agreements contemplated hereby have
been duly authorized by the Corporation.

 

2.                                       Regulation D Under
the Securities Act.  The Executive and the Corporation hereby
acknowledge and agree that the securities purchased by the Executive hereunder
are being issued in reliance in part on the exemption from registration
provided in Regulation D promulgated by the Securities and Exchange Commission
under the Securities Act and are “restricted securities” within the meaning of
Rule 144 under the Securities Act. The Executive hereby covenants and agrees
that he shall sell the securities purchased hereunder only pursuant to
registration under the Securities Act, or pursuant to an exemption from
registration available thereunder.

 

3.                                       Legend.

 

(a)  The
certificates, if any, representing the Shares shall bear a legend in substantially
the following form:

 

“THESE SHARES HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 OR UNDER ANY APPLICABLE STATE LAW. THEY MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR PLEDGED WITHOUT (1) REGISTRATION
UNDER THE SECURITIES ACT OF 1933 AND ANY APPLICABLE STATE LAW, OR (2) AT HOLDER’S
EXPENSE, AN OPINION (SATISFACTORY TO THE CORPORATION) OF COUNSEL (SATISFACTORY
TO THE CORPORATION) THAT REGISTRATION IS NOT REQUIRED.”

 

(b)  In addition, the certificates, if any,
representing the Shares shall bear a legend in substantially the following
form:

 

“THE OWNERSHIP OF THIS CERTIFICATE AND
THE SHARES OF STOCK EVIDENCED HEREBY AND ANY INTEREST THEREIN ARE

 

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SUBJECT TO
SUBSTANTIAL RESTRICTIONS ON TRANSFER UNDER AN AGREEMENT ENTERED INTO BETWEEN
THE REGISTERED OWNER AND MSC.SOFTWARE CORPORATION.  A COPY OF SUCH AGREEMENT IS ON FILE IN THE
OFFICE OF THE SECRETARY OF MSC.SOFTWARE.”

 

The
legend set forth in this Section 3(b) shall be removed from the certificates
evidencing the Shares upon the occurrence of one of the events set forth in Section 1(f).

 

4.                                       Registration Rights. 
The Corporation agrees that, at its own expense, it will use reasonable
efforts to register all shares of Common Stock covered by this Agreement on a
Form S-8 Registration Statement (including a reoffer prospectus prepared in
accordance with the SEC’s General Instructions to Form S-8) under the
Securities Act promptly after the Corporation is first able to file and have
declared effective such a Registration Statement.  The Corporation shall promptly remove the
legend described in Section 3(a) from the certificates when the shares
have been registered and the Registration Statement is effective.  The Grantee agrees that, in connection with
any resale of the shares, the Grantee will sell such shares pursuant to such
reoffer prospectus, will deliver such reoffer prospectus in accordance with
applicable securities laws, and will otherwise comply with applicable laws as
to such sale.

 

5.                                       Corporation’s Obligation to Repurchase Upon a Change in Control Event or Going Private
Transaction.  If, as a result of a Change in Control Event
(within the meaning of clause (b) of the definition of such term in the
Corporation’s 2001 Stock Option Plan) or a Going Private Transaction, the
Common Stock of the Corporation is no longer readily tradable on an established
securities market, the Executive shall have the right to require the
Corporation, immediately before such Change in Control Event or Going Private
Transaction, to purchase any or all of the shares of Common Stock acquired by,
or issued to, the Executive under this Agreement and then held by him (to the
extent the Executive is not permitted or required to sell such shares in the
transaction giving rise to the Change in Control Event or Going Private
Transaction, as the case may be) on substantially the same per-share terms as
the Corporation’s stockholders selling Common Stock in such transaction
generally for an amount not less than the price paid (on a per share basis) to
the other holders of the Common Stock whose stock was acquired in connection
with the Change in Control Event or Going Private Transaction, as the case may
be, multiplied by the number of shares sold by the Executive to the Corporation.  The Executive’s right under this Section 5
is subject to the Corporation’s ability to effect such a repurchase of shares
in compliance with all applicable laws, rules and regulations.  For purposes of this Agreement, a “Going
Private Transaction” shall mean a transaction which does not constitute a
Change of Control Event, but in which all or substantially all of the shares of
Common Stock of the Corporation are purchased or otherwise acquired, including
a redemption by the Corporation, and in connection with such transaction, or
series of transactions, the Common Stock ceases to be traded on an established
securities exchange.

 

6.                                       Corporation’s Obligation to Repurchase
Upon Termination of Employment.  If the Executive’s employment
with the Corporation terminates for any reason at a time when there is no
public trading of the Corporation’s Common Stock, the Executive shall have the
right to require the Corporation to purchase any or all of the shares of Common
Stock acquired by, or issued to, the Executive under this Agreement within
sixty (60) days of such termination or, if later, within sixty (60) days after
the Corporation is able to repurchase such shares in compliance

 

4

 

with all applicable laws, rules and
regulations.  The Executive and the
Corporation shall mutually agree on the fair market value for such shares, and
in the event that no mutual agreement can be reached, the determination of the
fair market value for such shares shall be determined in accordance with an
appraisal procedure set out in a letter agreement of even date herewith.  The Executive’s right under this Section 6
is subject to the Corporation’s ability to effect such a repurchase of shares
in compliance with all applicable laws, rules and regulations.

 

7.                                       Notices.

 

(a)                                  All
notices, requests, demands and other communications required or permitted under
this Agreement shall be in writing and shall be deemed to have been duly given
and made if (i) delivered by hand, (ii) otherwise delivered against receipt
therefor, or (iii) sent by registered or certified mail, postage prepaid,
return receipt requested.  Any notice
shall be duly addressed to the parties as follows:

 

If to the Corporation:

 

MSC.Software
Corporation

2
MacArthur Place

Santa
Ana,  California
92707

Attn:
Board of Directors

 

with a copy to:

 

Jeffrey
W. Walbridge, Esq.

O’Melveny
& Myers LLP

610
Newport Center Drive, Suite 1700

Newport
Beach, California 92660

 

If to the Executive:

 

William
J. Weyand

6805
Alberly Lane

Cincinnati,
Ohio 45243

 

(b)                                 Any party may alter the address to which
communications or copies are to be sent by giving notice of such change of
address in conformity with the provisions of this Section 7 for the giving
of notice.  Any communication shall be
effective when delivered by hand, when otherwise delivered against receipt
therefor, or five (5) business days after being mailed in accordance with the
foregoing.

 

8.                                       General Provisions.

 

(a)                                  Withholding
Taxes.  Notwithstanding anything else
herein to the contrary, the Corporation may withhold (or cause there to be
withheld, as the case may be) from any amounts otherwise due or payable under
or pursuant to this Agreement such federal, state and local

 

5

 

income,
employment, or other taxes as may be required to be withheld pursuant to any
applicable law or regulation.

 

(b)                                 Assignment.  This Agreement is personal in its nature and
neither of the parties hereto shall, without the consent of the other, assign
or transfer this Agreement or any rights or obligations hereunder; provided,
however, that in the event of a merger, consolidation, or transfer or
sale of all or substantially all of the assets of the Corporation with or to
any other individual(s) or entity, this Agreement shall, subject to the
provisions hereof, be binding upon and inure to the benefit of such successor
and such successor shall discharge and perform all the promises, covenants,
duties, and obligations of the Corporation hereunder.

 

(c)                                  Rights Regarding Employment. 
The terms and conditions of Executive’s employment are provided pursuant
to the Employment Agreement, and nothing in this Agreement will be construed to
conflict with or alter those terms or conditions.

 

(d)                                 Number
and Gender.  Where the context
requires, the singular shall include the plural, the plural shall include the
singular, and any gender shall include all other genders.

 

(e)                                  Section Headings.  The section headings of, and titles of
paragraphs and subparagraphs contained in, this Agreement are for the purpose
of convenience only, and they neither form a part of this Agreement nor are
they to be used in the construction or interpretation thereof.

 

(f)                                    Governing Law.  This Agreement, and all questions relating to
its validity, interpretation, performance and enforcement, as well as the legal
relations hereby created between the parties hereto, shall be governed by and
construed under, and interpreted and enforced in accordance with, the laws of
the State of California, notwithstanding any California or other conflict of
law provision to the contrary.

 

(g)                                 Severability.  If any provision of this Agreement or the
application thereof is held invalid, the invalidity shall not affect other
provisions or applications of this Agreement which can be given effect without
the invalid provisions or applications and to this end the provisions of this
Agreement are declared to be severable.

 

(h)                                 Entire Agreement.  This Agreement, together with the Employment
Agreement, embodies the entire agreement of the parties hereto respecting the
matters within its scope.  This Agreement
supersedes all prior and contemporaneous agreements of the parties hereto that
directly or indirectly bears upon the subject matter hereof.  Any prior negotiations, correspondence,
agreements, proposals or understandings relating to the subject matter hereof
shall be deemed to have been merged into this Agreement, and to the extent
inconsistent herewith, such negotiations, correspondence, agreements,
proposals, or understandings shall be deemed to be of no force or effect.  There are no representations, warranties, or
agreements, whether express or implied, or oral or written, with respect to the
subject matter hereof, except as expressly set forth herein.  This Agreement, together with the Employment
Agreement, is an integrated Agreement.

 

6

 

(i)                                     Modifications.  This Agreement may not be amended, modified
or changed (in whole or in part), except by a formal, definitive written agreement
expressly referring to this Agreement, which agreement is executed by both of
the parties hereto.

 

(j)                                     Waiver.  Neither the failure nor any delay on the part
of a party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any right, remedy, power or privilege, nor shall any
waiver of any right, remedy, power or privilege with respect to any occurrence
be construed as a waiver of such right, remedy, power or privilege with respect
to any other occurrence.  No waiver shall
be effective unless it is in writing and is signed by the party asserted to
have granted such waiver.

 

(k)                                  Resolution of Disputes. Except as set forth in Section 6,
any dispute, claim or controversy arising out of or relating to this
Agreement, including the enforcement or interpretation of any provision of this
Award Agreement, shall be submitted to arbitration in accordance with the
provisions set forth in Section 22 of the Employment Agreement.

 

(l)                                     Legal
Counsel; Mutual Drafting.  Each party
recognizes that this is a legally binding contract and acknowledges and agrees
that they have had the opportunity to consult with legal counsel of their
choice.  Each party has cooperated in the
drafting, negotiation and preparation of this Agreement.  Hence, in any construction to be made of this
Agreement, the same shall not be construed against either party on the basis of
that party being the drafter of such language. 
Executive agrees and acknowledges that he has read and understands this
Agreement completely, is entering into it freely and voluntarily, and has been
advised to seek counsel prior to entering into this Agreement and has had ample
opportunity to do so.

 

(m)                               Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original as against any party whose signature appears thereon, and
all of which together shall constitute one and the same instrument.  This
Agreement shall become binding when one or more counterparts hereof,
individually or taken together, shall bear the signatures of all of the parties
reflected hereon as the signatories.  Photographic
copies of such signed counterparts may be used in lieu of the originals for any
purpose.

 

7

 

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

 

	
   

  	
  CORPORATION:

  
	
   

  	
   

  
	
   

  	
  MSC.SOFTWARE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Laskey

  	
   

  
	
   

  	
  Name: John Laskey

  
	
   

  	
  Title: Senior Vice President, Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ William J. Weyand

  	
   

  
	
   

  	
  Name: William J. Weyand

  
					

 

8Exhibit 10.3

 

MSC.SOFTWARE CORPORATION

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

THIS RESTRICTED
STOCK UNIT AWARD AGREEMENT (this “Award
Agreement”) by and between MSC.SOFTWARE
CORPORATION, a Delaware corporation (the “Corporation”),
and William J. Weyand (the “Grantee”)
evidences the restricted stock unit award (the “Award”)
granted by the Corporation to the Grantee as to the number of stock units first
set forth below.

 

 

	
  Number
  of Stock Units:(1)
                                          

  	
  Effective
  Date:                                      

  
	
   

  	
   

  
	
  Vesting(1),(2)
  The Award shall become vested as
  to 50% of the total number of stock units subject to the Award on each of the
  first and second anniversaries of the Effective Date.

  

 

The Award
is subject to the Terms and Conditions of Restricted Stock Unit Award (the “Terms”) attached to this Award Agreement (incorporated
herein by this reference) and to that certain Employment Agreement between the
Corporation and the Grantee of even date herewith (the “Employment
Agreement”).  The Award 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 parties agree to the terms of the Award
set forth herein.  The Grantee
acknowledges receipt of a copy of the Terms.

 

	
  “GRANTEE”

  	
  MSC.SOFTWARE
  CORPORATION,

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  William J. Weyand

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  John Laskey

  
	
   

  	
  Title:

  	
  Senior Vice President,

  
	
   

  	
   

  	
  Chief Financial Officer

  
						

 

 

(1)          Subject
to adjustment under Section 8 of the Terms.

(2)          Subject
to early termination under Section 7 of the Terms.

 

 

TERMS AND CONDITIONS OF RESTRICTED STOCK UNIT
AWARD

 

1.                                      Restricted Stock Units.  As used herein, a “Restricted Stock
Unit” is a non-voting unit of measurement which is deemed for bookkeeping
purposes to be equivalent in value to one outstanding share of common stock of
the Corporation (the “Common Stock”).  The Restricted Stock Units shall be used
solely as a device for the determination of any payment to eventually be made
to the Grantee if and when such Restricted Stock Units vest pursuant to Section 2.

 

The Restricted
Stock Units create no fiduciary duty to the Grantee and shall create only a
contractual obligation on the part of the Corporation to make payments, subject
to vesting and the other terms and conditions hereof, as provided in Section 6
below.  The Restricted Stock Units shall
not be treated as property or as a trust fund of any kind.  No assets have been secured or set aside by
the Corporation with respect to the Award and, if amounts become payable to the
Grantee pursuant to this Award Agreement, the Grantee’s rights with respect to
such amounts shall be no greater than the rights of any general unsecured
creditor of the Corporation.

 

2.                                      Vesting.  As set forth on the cover page of this Award
Agreement, the Award shall vest in percentage installments, subject to earlier
termination or acceleration and subject to adjustment as provided herein.

 

3.                                      Continuance of Employment.  The vesting schedule requires continued
employment 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 Award Agreement.  Employment 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 as provided in Section 7 below.

 

Nothing
contained in this Award Agreement constitutes an employment commitment by the
Corporation or any Subsidiary (as defined below), confers upon the Grantee any
right to remain employed by the Corporation or any Subsidiary, or interferes in
any way with the right of the Corporation or any Subsidiary at any time to
terminate such employment.  Nothing in
this paragraph, however, is intended to adversely affect any independent
contractual right of the Grantee under any written employment agreement with
the Corporation.

 

For
purposes of this Award Agreement, “Subsidiary”
means any corporation or other entity a majority of whose outstanding voting
stock or voting power is beneficially owned, directly or indirectly, by the
Corporation.

 

4.                                      No Stockholder Rights.  The Grantee shall have no rights as a
stockholder of the Corporation, no dividend rights and no voting rights with
respect to the Restricted Stock Units or any shares of Common Stock issuable in
respect of such Restricted Stock Units, until shares of Common Stock are
actually issued to and held of record by the Grantee.  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 evidencing the shares.

 

5.                                      Restrictions on Transfer.  Prior to the time (if any) the Restricted
Stock Units are vested and paid, neither the Restricted Stock Units comprising
the Award nor any interest therein or amount payable in respect thereof may be
sold, assigned, transferred, pledged or otherwise

 

 

disposed
of, alienated or encumbered, either voluntarily or involuntarily, other than by
will or the laws of descent and distribution.

 

Following
any payment of Restricted Stock Units in shares of Common Stock pursuant to Section 6,
neither any such shares, nor any interest therein or amount payable in respect
thereof, may be sold, assigned, transferred, pledged or otherwise disposed of,
alienated or encumbered, either voluntarily or involuntarily (other than by
will or the laws of descent and distribution) until the earliest of (i) the
second anniversary of the Effective Date, (ii) the day upon which the Grantee’s
employment with the Corporation terminates under any of the circumstances
described in Section 5.3(b) or 5.3(c) of the Employment Agreement and the
Grantee is entitled to the severance benefits provided thereunder (after having
met the requirements thereunder, including, without limitation, having provided
the required release as contemplated by the Employment Agreement), or (iii)
immediately preceding a Change in Control Event (as such term is defined in the
Corporation’s 2001 Stock Option Plan) (the “2001 Plan”),
or (iii) a Going Private Transaction (as defined below).

 

The transfer restrictions of this Section 5
shall not apply to transfers to the Corporation.

 

6.                                      Timing and Manner of Payment of Restricted Stock
Units.  Restricted Stock
Units subject to this Award Agreement that vest in accordance with Section 2
shall be paid in an equivalent number of shares of Common Stock, which shall be
fully paid and non-assessable, promptly on or as soon as practicable after the
earliest to occur of (i) the second anniversary of the Effective Date, (ii) the
date that is six months after the termination of the Grantee’s employment, (iii)
a Change in Control Event, or (iv) a Going Private Transaction (the “Payment Date”); provided, however, that in no event shall
payment of any Restricted Stock Unit be made prior to the date such unit vests
or, if later, the earliest date on which such payment may be received under Section 409A
(as defined herein).  Such payment shall
be subject to the tax withholding provisions of Section 9 and subject to
adjustment as provided in Section 8, and shall be in complete satisfaction
of such vested Restricted Stock Units.  The
Grantee shall deliver to the Corporation any representations or other documents
or assurances required pursuant to Section 10 and Section 11.

 

7.                                      Effect of
Termination of Employment.  The Award and any Restricted Stock
Units subject to the Award, to the extent not vested as of the first date the Grantee
is no longer employed by the Corporation or one of its Subsidiaries, shall
terminate as of such date, and the Grantee shall have no further rights with
respect to the Award or such Restricted Stock Units; provided, however, that any
such Restricted Stock Units shall become fully vested on the earlier of (i) the
day upon which the Grantee ceases to be employed by the Corporation in any of
the circumstances described in Section 5.3(b) or 5.3(c) of the Employment
Agreement and the Grantee is entitled to severance benefits provided thereunder
(after having met the requirements thereunder, including, without limitation,
having provided the required release as contemplated by the Employment
Agreement), or (ii) a Change in Control Event or a Going Private Transaction.  The Payment Date for any Restricted Stock
Units that vest in accordance with the foregoing proviso shall be the date on
which the Grantee’s employment terminates or such Change in Control Event or
the Going Private Transaction.

 

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8.                                      Adjustments
Upon Specified Events.

 

Upon
or in contemplation of any reclassification, recapitalization, stock split (including a stock split
in the form of a stock dividend) or reverse stock split; any merger, combination,
consolidation or other reorganization; any split-up; spin-off, or similar
extraordinary dividend distribution in respect of the Common Stock (whether in
the form of securities or property); any exchange of Common Stock or other
securities of the Corporation, or any similar, unusual or extraordinary
corporate transaction in respect of the Common Stock; or a sale of
substantially all the assets of the Corporation as an entirety; then the
Corporation shall, in such manner, to such extent (if any) and at such time as
it deems appropriate and equitable in the circumstances make
adjustments if appropriate in the number of Restricted Stock Units contemplated
hereby and the number and kind of securities that may be issued in respect of
the Award.

 

9.                                      Tax Withholding.  The Corporation shall reasonably determine
the amount of any federal, state, local or other income, employment, or other
taxes which the Corporation or any of its affiliates may reasonably be
obligated to withhold with respect to the grant, vesting, or other event with
respect to the Restricted Stock Units. 
The Corporation may, in its sole discretion, withhold a sufficient
number of shares of Common Stock in connection with the vesting of the
Restricted Stock Units at the then Fair Market Value (as defined below) of the
Common Stock (determined either as of the date of such withholding or as of the
immediately preceding trading day, as determined by the Corporation in its
discretion) to satisfy the amount of any such withholding obligations that arise
with respect to the vesting of such Restricted Stock Units.  The Corporation may take such action(s)
without notice to the Grantee and shall remit to the Grantee the balance of any
proceeds from withholding such shares in excess of the amount reasonably determined
to be necessary to satisfy such withholding obligations.  The Grantee shall have no discretion as to
the satisfaction of tax withholding obligations in such manner.  If, however, any withholding event occurs
with respect to the Restricted Stock Units other than the vesting of such
units, or if the Corporation for any reason does not satisfy the withholding
obligations with respect to the vesting of the Restricted Stock Units as
provided above in this Section 9 the Corporation shall be entitled to require
a cash payment by or on behalf of the Grantee and/or to deduct from other
compensation payable to the Grantee the amount of any such withholding
obligations.

 

For
purposes of this Award Agreement (except as provided in Section 15), “Fair Market Value” on any date means (i) if the stock is
listed or admitted to trade on a national securities exchange, the closing
price of the stock on the Composite Tape, as published in the Western Edition
of the Wall Street Journal, of the principal national securities exchange on
which the stock is so listed or admitted to trade, on such date, or, if there
is no trading of the stock on such date, then the closing price of the stock as
quoted on such Composite Tape on the next preceding date on which there was
trading in such shares; (ii) if the stock is not listed or admitted to trade on
a national securities exchange, the last/closing price for the stock on such
date, as furnished by the National Association of Securities Dealers, Inc. (“NASD”)
through the NASDAQ National Market Reporting System or a similar organization
if the NASD is no longer reporting such information; (c) if the stock is not
listed or admitted to trade on a national securities exchange and is not
reported on the National Market Reporting System, the mean between the bid and
asked price for the stock on such date, as furnished by the NASD or a similar
organization; or (d) if the stock is not listed or admitted to trade on a
national securities

 

3

 

exchange, is not reported on the
National Market Reporting System and if bid and asked prices for the stock are
not furnished by the NASD or a similar organization, the value as established
by the Corporation’s Board of Directors at such time for purposes of this Award
Agreement.  Any determination as to fair
market value made pursuant to this Award Agreement shall be determined without
regard to any restriction other than a restriction which, by its terms, will
never lapse, and shall be conclusive and binding on all persons.

 

10.                               Compliance
with Laws.  The Award and the
offer, issuance and delivery of securities and/or payment of money under this
Award Agreement are subject to compliance with all applicable federal and state
laws, rules and regulations (including but not limited to state and federal
securities law and federal margin requirements) and to such approvals by any
listing, regulatory or governmental authority as may, in the opinion of counsel
for the Corporation, be necessary or advisable in connection therewith.  Any securities delivered under this Award
Agreement will be subject to such restrictions and to any restrictions the
Corporation may require to preserve a pooling of interests under generally
accepted accounting principles, and the Grantee will, if requested by the
Corporation, provide such assurances and representations to the Corporation as
the Corporation may deem necessary or desirable to assure compliance with all
applicable legal requirements.  The Corporation will cause such
action to be taken, and such filings to be made, so that the grant hereunder
shall comply with the rules of the New York Stock Exchange.

 

11.                               Representations
and Warranties.  In the event,
and only in the event, that any Restricted Stock Units are to be paid in shares
of Common Stock pursuant to this Award Agreement at a time when the Corporation
does not have an effective Form S-8 Registration Statement (including a reoffer
prospectus prepared in accordance with the SEC’s General Instructions to Form
S-8) on file with the Securities and Exchange Commission with respect to the
offer and sale of the shares of Common Stock covered by this Award Agreement,
the Grantee, at the time he acquires such shares, shall represent and warrant
to the Corporation that:

 

(a)                                  the shares of Common Stock that may be
acquired by the Grantee pursuant to this Award Agreement will be acquired for
the Grantee’s own account and not with a view to, or in connection with, a
distribution thereof in violation of the Securities Act of 1933, as amended
(the “Securities Act”), or any applicable
state securities laws, and the shares of Common Stock will not be disposed of
in contravention of the Securities Act or any applicable state securities laws;

 

(b)                                 the Grantee is an “accredited investor” as
such term is defined in Rule 501 promulgated under the Securities Act and is
sophisticated in financial matters;

 

(c)                                  the Grantee is able to bear the economic
risk of his investment in the shares for an indefinite period of time because
the shares have not been registered under the Securities Act and, therefore,
cannot be sold unless subsequently registered under the Securities Act or an
exemption from such registration is available;

 

(d)                                 the Grantee has had the opportunity to ask
questions of, and receive answers from, the Corporation and its management
concerning the terms and conditions of

 

4

 

the offering of the Common Stock and to
obtain information regarding the Corporation’s condition (financial and otherwise)
and operations; and

 

(e)                                  this Award Agreement and each of the
other agreements contemplated hereby to which such Grantee is a party
constitute legal, valid and binding obligations of the Grantee, enforceable in
accordance with their terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and limitations on the availability of equitable
remedies, and the execution, delivery and performance of this Award Agreement
and such other agreements by such Grantee does not and will not conflict with,
violate or cause a breach of any agreement, contract or instrument to which the
Grantee is a party or any judgment or decree to which the Grantee is subject.

 

12.                               Legends.

 

(a)                                  In
the event, and only in the event, that, at the time any Restricted Stock Units
are to be paid in shares of Common Stock pursuant to this Award Agreement, the
Corporation does not have an effective Form S-8 Registration Statement (including
a reoffer prospectus prepared in accordance with the SEC’s General Instructions
to Form S-8) on file with the Securities and Exchange Commission with respect
to the offer and sale of shares of Common Stock covered by this Award
Agreement, the certificates, if
any, representing the shares of Common Stock so paid will bear a legend in
substantially the following form:

 

“THESE
SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR UNDER ANY
APPLICABLE STATE LAW. THEY MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
PLEDGED WITHOUT (1) REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND ANY
APPLICABLE STATE LAW, OR (2) AT HOLDER’S EXPENSE, AN OPINION (SATISFACTORY TO
THE CORPORATION) OF COUNSEL (SATISFACTORY TO THE CORPORATION) THAT REGISTRATION
IS NOT REQUIRED.”

 

(b)                                 In
addition, the certificates, if any, representing any shares of Common Stock paid
pursuant to this Award Agreement will bear a legend in substantially the
following form:

 

“THE OWNERSHIP OF
THIS CERTIFICATE AND THE SHARES OF STOCK EVIDENCED HEREBY AND ANY INTEREST
THEREIN ARE SUBJECT TO SUBSTANTIAL RESTRICTIONS ON
TRANSFER UNDER AN AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND
MSC.SOFTWARE CORPORATION.  A COPY OF SUCH
AGREEMENT IS ON FILE IN THE OFFICE OF THE SECRETARY OF MSC.SOFTWARE.”

 

The legend set forth in this Section 12(b)
will be removed from the certificates evidencing such shares upon the occurrence
of one of the events set forth in Section 5.

 

5

 

13.                               Registration
Rights.  The Corporation agrees that, at its own expense, it will use reasonable
efforts to register all shares of Common Stock covered by this Award Agreement
on a Form S-8 Registration Statement (including a reoffer prospectus prepared
in accordance with the SEC’s General Instructions to Form S-8) under the
Securities Act promptly after the Corporation is first able to file and have
declared effective such a Registration Statement.  The Corporation shall promptly remove the
legend described in Section 12(a) from the certificates when the shares
have been registered and the Registration Statement is effective.  The Grantee agrees that, in connection with any resale of such shares,
the Grantee will sell such shares pursuant to such reoffer prospectus, will
deliver such reoffer prospectus in accordance with applicable securities laws,
and will otherwise comply with applicable laws as to such sale.

 

14.                               Corporation’s Obligation
to Repurchase Upon a Change in Control Event or Going
Private Transaction.  If, as a result of a Change in Control Event
(within the meaning of clause (b) of the definition of such term in the 2001
Plan) or a Going Private Transaction, the Common Stock of the Corporation is no
longer readily tradable on an established securities market, the Grantee shall
have the right to require the Corporation, immediately before such Change in
Control Event or Going Private Transaction, to purchase any or all of the
shares of Common Stock acquired by, or issued to, the Grantee under this
Agreement and then held by him (to the extent the Grantee is not permitted or
required to sell such shares in the transaction giving rise to the Change in
Control Event or Going Private Transaction, as the case may be) on
substantially the same per-share terms as the Corporation’s stockholders
selling Common Stock in such transaction generally for an amount not less than
the price paid (on a per share basis) to the other holders of the Common Stock
whose stock was acquired in connection with the Change in Control Event or the
Going Private Transaction, as the case may be) multiplied by the number of
shares sold by the Grantee to the Corporation. 
The Grantee’s right under this Section 14 is subject to the
Corporation’s ability to effect such a repurchase of shares in compliance with
all applicable laws, rules and regulations. 
For purposes of this Agreement, a “Going Private Transaction”
shall mean a transaction which does not constitute a Change of Control Event,
but in which all or substantially all of the shares of Common Stock of the
Corporation are purchased or otherwise acquired, including a redemption by the
Corporation, and in connection with such transaction, or series of
transactions, the Common Stock ceases to be traded on an established securities
exchange.

 

15.                               Corporation’s
Obligation to Repurchase Upon Termination of Employment.  If the Grantee’s employment with the Corporation terminates for any
reason at a time when there is no public trading of the Corporation’s Common
Stock, the Grantee shall have the right to require the Corporation to purchase
any or all of the shares of Common Stock acquired by the Grantee under this
Award Agreement within sixty (60) days of such termination or, if later, within
sixty (60) days after the Corporation is able to repurchase such shares in
compliance with all applicable laws, rules and regulations.  The Grantee and the Corporation shall
mutually agree on the fair market value for such shares, and in the event that
no mutual agreement can be reached, the determination of the fair market value
for such shares shall be as determined in accordance with an appraisal
procedure set out in a letter agreement of even date herewith.  The Grantee’s right under this Section 15
is subject to the Corporation’s ability to effect such a repurchase of shares
in compliance with all applicable laws, rules and regulations.

 

6

 

16.                               Number
and Gender.  Where the context
requires, the singular shall include the plural, the plural shall include the
singular, and any gender shall include all other genders.

 

17.                               Section Headings.  The section headings of, and titles of
paragraphs and subparagraphs contained in, this Award Agreement are for the
purpose of convenience only, and they neither form a part of this Award Agreement
nor are they to be used in the construction or interpretation thereof.

 

18.                               Governing
Law.  This Award Agreement, and
all questions relating to its validity, interpretation, performance and
enforcement, as well as the legal relations hereby created between the parties
hereto, shall be governed by and construed under, and interpreted and enforced
in accordance with, the laws of the State of California, notwithstanding any
California or other conflict of law provision to the contrary.

 

19.                               Construction.  This Award Agreement shall be construed and
interpreted to comply with Section 409A of the Internal Revenue Code (“Section 409A”). 
The Corporation reserves the right to amend this Award Agreement to the
extent it reasonably determines is necessary in order to preserve the intended
tax consequences of the Restricted Stock Units in light of Section 409A
and any regulations or other guidance promulgated thereunder.

 

20.                               Severability.  If any provision of this Award Agreement or
the application thereof is held invalid, the invalidity shall not affect other
provisions or applications of this Award Agreement which can be given effect
without the invalid provisions or applications and to this end the provisions
of this Award Agreement are declared to be severable.

 

21.                               Entire
Agreement.  This Award Agreement,
together with the Employment Agreement, embodies the entire agreement of the
parties hereto respecting the matters within the scope of this Award Agreement
and supersedes all prior and contemporaneous agreements of the parties hereto
that directly or indirectly bears upon the subject matter hereof.  Any prior negotiations, correspondence,
agreements, proposals or understandings relating to the subject matter hereof
shall be deemed to have been merged into this Award Agreement, and to the
extent inconsistent herewith, such negotiations, correspondence, agreements,
proposals, or understandings shall be deemed to be of no force or effect.  There are no representations, warranties, or
agreements, whether express or implied, or oral or written, with respect to the
subject matter hereof, except as expressly set forth herein.  This Award Agreement, together with the
Employment Agreement, is an integrated Agreement as to the subject matter
hereof.

 

22.                               Modifications.  This Award Agreement may not be amended,
modified or changed (in whole or in part), except by a formal, definitive
written agreement expressly referring to this Award Agreement, which agreement
is executed by both of the parties hereto.

 

23.                               Waiver.  Neither the failure nor any delay on the part
of a party to exercise any right, remedy, power or privilege under this Award Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, remedy, power or privilege preclude any other or further exercise of
the same or of any right, remedy, power or privilege, nor shall any waiver of
any right, remedy, power or privilege with respect to any occurrence be
construed as a waiver of

 

7

 

such
right, remedy, power or privilege with respect to any other occurrence.  No waiver shall be effective unless it is in
writing and is signed by the party asserted to have granted such waiver.

 

24.                               Resolution
of Disputes.  Except as set forth
in Section 15, any dispute, claim or controversy arising out of or
relating to this Award Agreement, including the enforcement or interpretation
of any provision of this Award Agreement, shall be submitted to arbitration in
accordance with the provisions set forth in Section 22 of the Employment
Agreement.

 

25.                               Notices.

 

(a)                                  All notices,
requests, demands and other communications required or permitted under this
Award Agreement shall be in writing and shall be deemed to have been duly given
and made if (i) delivered by hand, (ii) otherwise delivered against receipt
therefor, or (iii) sent by registered or certified mail, postage prepaid,
return receipt requested.  Any notice
shall be duly addressed to the parties as follows:

 

(i)  
if to the Corporation:

 

MSC.Software
Corporation

2
MacArthur Place

Santa
Ana,  California
92707

Attn:
Board of Directors

 

with a copy to:

 

Jeffrey
W. Walbridge, Esq.

O’Melveny
& Myers LLP

610
Newport Center Drive, Suite 1700

Newport
Beach, California 92660

 

(ii)  if to the Grantee:

 

William
J. Weyand

6805
Alberly Lane

Cincinnati,
Ohio 45243

 

(b)                                 Any party may alter the address to which
communications or copies are to be sent by giving notice of such change of
address in conformity with the provisions of this Section 25 for the
giving of notice.  Any communication
shall be effective when delivered by hand, when otherwise delivered against
receipt therefor, or five (5) business days after being mailed in accordance
with the foregoing.

 

26.                               Legal
Counsel; Mutual Drafting.  Each
party recognizes that this is a legally binding contract and acknowledges and
agrees that they have had the opportunity to consult with legal counsel of
their choice.  Each party has cooperated
in the drafting, negotiation and preparation of this Award Agreement.  Hence, in any construction to be made of this
Award Agreement, the same shall not be construed against either party on the
basis of that party being

 

8

 

the
drafter of such language.  Grantee agrees
and acknowledges that he has read and understands this Award Agreement
completes, is entering into it freely and voluntarily, and has been advised to
seek counsel prior to entering into this Award Agreement and has had ample
opportunity to do so.

 

27.                               Counterparts.  This Award Agreement may be executed in any
number of counterparts, each of which shall be deemed an original as against
any party whose signature appears thereon, and all of which together shall
constitute one and the same instrument. 
This Award Agreement shall become binding when one or more counterparts
hereof, individually or taken together, shall bear the signatures of all of the
parties reflected hereon as the signatories. 
Photographic copies of such signed counterparts may be used in lieu of
the originals for any purpose.

 

9

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