Document:

Exhibit 10.18

 

MLA No. E539D

 

AMENDMENT

 

 

THIS AMENDMENT is
entered into as of July 29, 2003, between CoBANK,
ACB (“CoBank”) and DAKOTA GROWERS
PASTA COMPANY, INC., Carrington, North Dakota (the “Company”).

 

BACKGROUND

 

CoBank and the Company are parties to a Master Loan Agreement dated
June 20, 2001 (such agreement, as previously amended, is hereinafter referred
to as the “MLA”).  CoBank and the
Company now desire to amend the MLA. 
For that reason, and for valuable consideration (the receipt and
sufficiency of which are hereby acknowledged), CoBank and the Company agree as
follows:

 

1.      
Section 10(A) of the MLA is hereby
amended and restated to read as follows:

 

SECTION 10.  Financial Covenants.  Unless otherwise agreed to in writing, while
this agreement is in effect:

 

(A)
Current Ratio. 
The Company and its consolidated Subsidiary will, on a combined basis,
have at the end of each period for which financial statements are required to
be furnished pursuant to Section 8(H) hereof, a ratio of consolidated current
assets to consolidated current liabilities (both as determined in accordance
with GAAP consistently applied) of not less than 1.20 to 1.0 through and
including April 30, 2004, and of not less than 1.35 to 1.0 thereafter.

 

2.      
Section 10(C) of the MLA is hereby
amended and restated to read as follows:

 

SECTION 10.  Financial Covenants.  Unless otherwise agreed to in writing, while
this agreement is in effect:

 

(C) Consolidated Funded Debt to
Consolidated Cash Flow Ratio.  The Company and its consolidated Subsidiary, on a combined basis,
will have at the end of each fiscal quarter of the Company, a Consolidated
Funded Debt to Consolidated Cash Flow of not more than 4.0 to 1.0 calculated on
a trailing four quarter basis through and including April 30, 2004, and of not
more than 3.0 to 1.0 thereafter. 
Consolidated Funded Debt means all debt which would in accordance GAAP,
constitute long term debt and including any current portion thereof including:  (a) any debt with a maturity of more than
one year after the creation of such debt, (b) any debt outstanding under a
revolving credit or similar agreement providing for borrowings (and renewables
and extensions thereof) which pursuant to its terms would constitute long term
debt in accordance with GAAP, (c) any Capital Lease obligation and (d) any
guarantee with respect to Funded Debt of another person.  Notwithstanding anything to the contrary
contained herein any debt outstanding under a revolving credit or similar
agreement providing borrowings which is paid down for a period of 30
consecutive days during any 12 months period (and not merely refinanced with a
short term credit facility) will not be deemed to constitute Funded Debt.  Consolidated Cash Flow shall mean the sum of
Consolidated Net Earnings after taxes of the Company and its Subsidiaries
plus:  (i) provision for any applicable
income taxes; (ii) depreciation and amortization; and (iii) Consolidated
Interest Expense for the period.

 

3.             Amendment
Fee.  In consideration of the
amendment, the Company agrees to pay to CoBank on the execution hereof, a fee
in the amount of $4,500.00.

 

4.             Except as set forth in this
amendment, the MLA, including all amendments thereto, shall continue in full
force and effect as written.

 

1

 

IN WITNESS WHEREOF,
the parties have caused this amendment to be executed by their duly authorized
officers as of the date shown above.

 

	
  CoBANK, ACB

  	
  DAKOTA GROWERS PASTA COMPANY, INC.

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
    /s/
  Thomas Friezen

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
    CFO

  	
   

  

 

2Exhibit
10.3

 

DIVESTITURE AND SOFTWARE LICENSE AGREEMENT

 

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

 

RECITALS

 

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

 

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

 

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

 

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

 

AGREEMENT

 

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

 

ARTICLE I:  DEFINITIONS

 

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

 

1.2                               “Commission” means the Federal Trade Commission.

 

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

 

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

 

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

 

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

 

1

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

* Information for which confidential treatment has been requested
pursuant to Rule 24(b)(2) of the Securities Exchange Act of 1934, as
amended.  The omitted material has been
filed separately with the Securities and Exchange Commission.

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

ARTICLE II:  GRANT

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

ARTICLE III:  TECHNICAL
ASSISTANCE, INFORMATION, PERSONNEL

 

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

 

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

 

ARTICLE IV:  CUSTOMER &
EMPLOYEE INFORMATION

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6

 

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

 

ARTICLE V:  PAYMENT

 

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

 

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

 

5.3                               Taxes.   
MSC agrees to pay, and indemnify and hold UGS harmless from, any tax
liability, including but not limited to sales or use tax or duty, including any
penalties and interest, as well as any costs associated with the collection or
withholding thereof, and all governmental permit fees, license fees and customs
and similar fees levied by any U.S. state or local taxing jurisdiction (a “Tax
Liability”, which term is exclusive of taxes based on net income or net worth
and which shall be the responsibility of the assessed party), upon any and all
of (i) the execution of this Agreement, (ii) the consummation of the
transaction contemplated by this Agreement, (iii) the delivery by MSC of any
tangible or intangible material hereunder, and (iv) any subsequent transfer
and/or use by UGS of such material to and/or in another state (each of (i)
through (iv) and collectively, a “Contemplated Event”).  Notwithstanding the foregoing, in the event
of a Tax Liability arising from or assessed as a result of a Contemplated
Event, UGS shall share Fifty Percent (50%) of such Tax Liability provided that
(a) MSC shall pay all such Tax Liabilities, (b) UGS’ satisfaction of its
obligation hereunder upon the occurrence of MSC’s payment of a Tax Liability
shall be solely in the form of royalty relief to MSC as such term is used on
Schedule A, and (c) any such attribution of a share of the Tax Liability to UGS
shall be considered part of the Divestiture Fee and therefore subject to the
limitations stated therein (specifically but not limited to the fact that the
total Divestiture Fee, inclusive of any Tax Liability attributed to UGS is
limited to a maximum of [*]). The parties agree that the license and related
transactions covered by this Agreement constitute a “technology transfer
agreement” under Cal. Rev. & Tax Code §§ 6011(c)(10), 6012(c)(10) and
California Tax Regulation 1507.  MSC and
UGS agree to provide each other with reasonable cooperation at such time and to
the extent reasonably requested by the other party in connection with the
conduct of any audit, dispute, proceeding, or action concerning the amounts
indemnifiable hereunder, or any other matter contemplated by this Section 5.3.

 

ARTICLE VI:  DELIVERY &
ACCEPTANCE

 

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

 

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

 

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

 

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

 

ARTICLE VII:  TERM &
TERMINATION

 

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

 

* Information for which confidential treatment has been requested
pursuant to Rule 24(b)(2) of the Securities Exchange Act of 1934, as
amended.  The omitted material has been
filed separately with the Securities and Exchange Commission.

 

7

 

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

 

ARTICLE VIII:  REPRESENTATIONS
& WARRANTIES

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article
IX:  Indemnification

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

ARTICLE X:  LIMITATION OF
LIABILITY

 

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

 

10.2                        WITH THE EXCEPTION OF MSC’S REPRESENTATIONS
UNDER SECTION 8.2, EITHER PARTY’S ENTIRE LIABILITY FOR ALL CLAIMS OR DAMAGES
ARISING OUT OF OR RELATED TO THIS AGREEMENT, REGARDLESS OF THE FORM OF ACTION,
WHETHER IN CONTRACT, EQUITY, NEGLIGENCE, INTENDED CONDUCT, TORT OR OTHERWISE,
WILL BE LIMITED TO AND WILL NOT EXCEED, IN THE AGGREGATE FOR ALL CLAIMS,
ACTIONS AND CAUSES OF ACTION OF EVERY KIND AND NATURE, SIX MILLION FIVE HUNDRED
THOUSAND DOLLARS ($6,500,000).  IN NO
EVENT WILL THE MEASURE OF DAMAGES PAYABLE BY EITHER PARTY INCLUDE, NOR WILL
EITHER PARTY BE LIABLE FOR, ANY AMOUNTS FOR LOSS OF INCOME, PROFIT OR SAVINGS
OR INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, PUNITIVE OR SPECIAL DAMAGES
OF ANY PARTY, INCLUDING THIRD PARTIES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES IN ADVANCE, AND ALL SUCH

 

9

 

DAMAGES ARE EXPRESSLY DISCLAIMED. NO CAUSE OF ACTION WHICH AROSE OUT OF
AN EVENT OR EVENTS WHICH OCCURRED MORE THAN TWO YEARS PRIOR TO THE FILING OF A
SUIT ALLEGING A CLAIM OR CAUSE OF ACTION MAY BE ASSERTED BY EITHER PARTY
AGAINST THE OTHER. NOTWITHSTANDING THE FOREGOING, THE PARTIES EXPRESSLY
ACKNOWLEDGE THAT MONETARY DAMAGES ARE AN INADEQUATE REMEDY FOR THE BREACH OF
EITHER PARTY’S RIGHTS OR OBLIGATIONS UNDER ARTICLE II (“GRANT”), WHICH SHALL
ALSO BE GOVERNED BY AND SUBJECT TO THE ADDITIONAL REMEDIES SET FORTH IN SECTION
11.1 (“INJUNCTIVE RELIEF & SPECIFIC PERFORMANCE”).

 

ARTICLE XI:  INJUNCTIVE RELIEF, SPECIFIC PERFORMANCE &
ENFORCEMENT PROCEEDINGS

 

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

 

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

 

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

 

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

 

10

 

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

 

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

 

ARTICLE XII:  CONFIDENTIALITY

 

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

 

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

 

ARTICLE XIII:  EXPORT CONTROL

 

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

 

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

 

11

 

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

 

ARTICLE XIV:  MISCELLANEOUS

 

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

 

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

 

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

 

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

 

	
   

  	
  If to MSC:

  	
   

  	
  MSC.Software Corporation

  
	
   

  	
   

  	
   

  	
  2 MacArthur Place

  
	
   

  	
   

  	
   

  	
  Santa Ana, California 92707

  
	
   

  	
   

  	
   

  	
  Attention: Thomas Baker

  
	
   

  	
   

  	
   

  	
  With a copy to: Legal Group

  
	
   

  	
   

  	
   

  	
  Fax: (714) 784-4056

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If to UGS:

  	
   

  	
  Unigraphics Solutions Inc.

  
	
   

  	
   

  	
   

  	
  2000 Eastman Drive

  

 

12

 

	
   

  	
   

  	
   

  	
  Milford, Ohio 45150

  
	
   

  	
   

  	
   

  	
  Attention:  Jim Rusk

  
	
   

  	
   

  	
   

  	
  With a copy to: Legal Counsel

  
	
   

  	
   

  	
   

  	
  Fax:  (513) 576-5696

  

 

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

 

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

 

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

 

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

 

Schedule A:             Divestiture Fees

Schedule B:             Description of Licensed Software/Licensed
Rights

Schedule C:             Third Party Software

Schedule D:             Licensed Trademarks

 

Exhibit 1:                           Decision and Order

Exhibit 2:                           Non-Disclosure Agreement (NDA)

 

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

 

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

 

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

 

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

 

13

 

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

 

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

 

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

 

 

	
  MSC.SOFTWARE CORPORATION (“MSC”)

  	
  UNIGRAPHICS SOLUTIONS INC. (“UGS”)

  
	
   

  	
   

  
	
  By:

  	
  /s/ Frank
  Perna, Jr.

  	
   

  	
  By:

  	
  /s/ Charles
  C. Grindstaff

  	
   

  
	
   

  	
   

  
	
  Title: 
  Chairman and CEO

  	
  Title: 
  President, PLM Products

  
	
   

  	
   

  
	
  Date: 
  March 31, 2003

  	
  Date: April 7, 2003

  
						

 

14

 

Schedule A

 

DIVESTITURE FEES

 

[*]

 

 

* Information for which confidential treatment has been requested
pursuant to Rule 24(b)(2) of the Securities Exchange Act of 1934, as
amended.  The omitted material has been
filed separately with the Securities and Exchange Commission.

 

15

 

Schedule B

 

DESCRIPTION OF LICENSED SOFTWARE / LICENSED RIGHTS

 

“Licensed Rights” means:

 

1.               the
following:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

The Licensed Rights shall include the
following licensed Software:

 

MSC.Nastran 2001 v.9.

 

16

 

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

 

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

 

Delivery and Acceptance terms:

 

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

 

EDS PLM

10824 Hope Street

Cypress, California  90630

 

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

 

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

 

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

 

17

 

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

 

18

 

Schedule C

 

THIRD PARTY SOFTWARE

 

The
following three (3) software components constitute the Third Party Software:

 

1.             Vanderplaats Research and Development, Dot V5.0

 

2.             Zona Technologies, Zona51

 

3.             Certain software from The Boeing Company f/k/a Boeing
Computer Service BCS LIB-EXT

 

19

 

SCHEDULE D

 

LICENSED
TRADEMARKS

 

The Licensed Marks include the following
registered trademarks:

 

1.               MSC.Nastran®

2.               MSC.Software
Corporation®

3.               CSA®

4.               CSA/GENSA®

5.               CSAR/OPTIM2®

6.               CSAR/SIZING2®

 

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

 

TRADEMARK USAGE GUIDELINES

 

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

 

20

 

EXHIBIT 1

 

DECISION & ORDER

 

[Omitted.  Immaterial to agreement.]

 

21

 

EXHIBIT 2

 

NON-DISCLOSURE AGREEMENT (NDA)

 

[Omitted.  Immaterial to agreement.]

 

22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]