Document:

Exhibit
10.14(a)

 

FIRST AMENDMENT TO LETTER AGREEMENT

 

This Amendment
(the ““Amendment”) is entered into by and between Aspen Technology, Inc. (“Aspen”)
and Sanwa Business Credit Corporation (“SBCC”) effective as of the 3rd
day of March, 1994.

 

WHEREAS, Aspen and SBCC are parties to that
certain letter agreement dated as of March 25, 1992, (the “Letter
Agreement”); and

 

WHEREAS, Aspen and SBCC wish to amend the
Letter Agreement as hereinafter provided;

 

NOW THEREFORE,
in consideration of the premises and for other good and valuable consideration
the receipt of which is hereby acknowledged, Aspen and SBCC hereby agree as
follows:

 

A.                                    Amendment.  The Letter Agreement shall be amended as
follows:

 

1.                                      Paragraph
1 is amended by the deletion of clause (ii) from subparagraph (1(k) and
the insertion of the following terms in replacement of the deleted terms:

 

“(ii) the
failure of an Obligor under any International Contract to make a Payment within
twenty-five (25) days of the due date of that Payment;”

 

2.                                      Paragraph
1 is further amended by the addition of the following terms:

 

“(q) ‘Loss’
means, in relation to any Contract, the difference between (i) the
Repurchase Price of the Contract repurchased by you from us, and (ii) any
Payments received or recoveries made by you with respect to the Contract or the
Software license covered by the Contract after your repurchase of the Contract
from us.”

 

3.                                      Paragraph
8 is amended by the insertion of the following immediately after the first
sentence and immediately before the second sentence:

 

“You will, or
will cause one or more of your subsidiaries or affiliates to, timely prepare
and deliver invoices for all Payments under ./International Contracts to the
Obligor(s) under such Contracts. 
Such invoices shall Specify the date for payment, the amount due, and
shall , instruct the Obligor to remit Payments to us at Harris Trust and
Savings Bank, ABA Number 071000288, for the Account of Sanwa Business Credit
Corporation, Account Number 4016895.”

 

4.                                      Paragraph
11 of the Letter Agreement is deleted in its entirety and replaced by the
following:

 

1

 

“11.                         Repurchase
of Contracts (Obligor Default).

 

(a)                                 In
the event of an Obligor Default under any Contract purchased by us, and upon
our request in writing that you repurchase the defaulted Contract, you will,
for Domestic Contracts, within ten (10) days after receipt of our request,
and for International Contracts, within five (5) days after receipt of our
request, pay to us an amount equal to the Repurchase Price of the defaulted
Contract, computed as of the time of your payment.  Requests for repurchase under this paragraph
may be given to you from us by telecopy to you at Aspen Technology Inc., to the
attention of Mary A. Dean, and shall be deemed given upon the sending thereof,
if followed by letter confirmation given in the manner provided for notices
under this Agreement.  After we receive
the Repurchase Price for any repurchased Contract we will reassign to you all
of our right, title and interest in the repurchased Contract and any Payments
due thereunder without recourse to, and without representations or warranties
by, us of any kind whatsoever.

 

(b)                                 The
maximum amount of Loss which you will be required to bear on account of
repurchases under paragraph 11(a) in any “fiscal year” (i.e.  any twelve month period month period ending
on June 30th) shall be equal to twenty-five percent {25%) percent of the
aggregate Balance of Payments (determined as of the first day of such fiscal
year for Contracts owned by us as of the first day of such fiscal year, and
determined as of the date of our purchase for Contracts purchased by us during
such fiscal year); provided, however, that if an Obligor Default
occurs with respect to one or more of the three (3) largest Contracts, the
maximum amount of Loss for any fiscal year shall be equal to the greater of (i) the
amount determined under the formula above, or (ii) a sum equal to the
aggregate Balance of Payment of the three (3) largest Contracts
(determined as of the first day of such fiscal year for Contracts owned by us
as of the first day of such fiscal year, and determined as of the date of our
purchase for Contracts purchased by us during such fiscal year).  In making the foregoing computations, all Contracts
in a Group that have a common Obligor or Obligors owned, controlling,
controlled by or under common control with substantially the same person(s),
firm(s) or other entity, shall be treated as a single Contract for
purposes of determining the three (3) largest Contracts.

 

(c)                                  The
limitation on Losses which you will be required to bear under the provisions of
paragraph 11(b) pertains solely to Losses occasioned by reason of your
obligations under paragraph 11(a) to repurchase Contracts due to an Obligor
Default.  Any loss 

 

2

 

or losses
incurred by you by reason of your obligations to repurchase Contracts because
of matters other than those provided in paragraph 11(a) will not be
considered in determining whether the amount of Loss you have borne or will
bear is more or less than the applicable maximum amount of Loss computed under
paragraph 11(b).  After your repurchasing
a Contract from us due to an Obligor Default under paragraph 11(a), you agree
to follow your ordinary practices and procedures to recover any unpaid Payments
under such Contract.  You agree to notify
us of any such recovery.

 

(d)                                 In
the event that the performance of your obligations to repurchase Contracts
under paragraph 11(a) causes your aggregate loss for any fiscal year to
exceed the maximum amount of Loss which has been computed in accordance with
paragraph 11(b) for that fiscal year, we will refund the excess amount
within ten (10) days after receipt of your invoice for the amount of
excess loss (provided that the Loss for such Contract has been calculated and
the invoice shows the calculations of the excess Loss).  Nothing in this paragraph 11(d) shall be
construed to relieve you of your obligation to repurchase Contracts pursuant to
the provisions of this paragraph 11, regardless of whether your aggregate Loss
for any fiscal year exceeds the maximum amount of loss for that fiscal year.

 

5.                                      The
letter Agreement is amended by the addition of the following terms immediately
following Paragraph 11:

 

“11A.                Extension of
Repurchase Period; Nullification of Repurchase Requests.

 

(a)                                 In
the event that (i) you are required to repurchase a Contract pursuant to
paragraph 10 of this Agreement due to the Obligor’s assertion of an offset,
counterclaim or defense based solely upon an alleged failure of the Software
covered by the Contract to perform acceptably or to comply with related
documentation or warranties, or (ii) you are required to repurchase a
Contract pursuant to paragraph 11 of this Agreement because the Obligor has
failed to make any Payment under the Contract within twenty—five days (in the
case of an International Contract) or within thirty days (in the case of a
Domestic Contract), and provided that, in case of either (i) or (ii),
you are not in default of any of your covenants or agreements under this
Agreement or any Assignment, then you may elect to extend the period for
your repurchase of such Contract.

 

3

 

(b)                                 If
you elect to so extend your period for the repurchase of a Contract, you must
notify us of your intent to do so prior to the latest date for your repurchase
of the Contract and make payment to us of all amounts which are due and/or past
due under or with respect to the Contract (excepting those which are due solely
by reason of an acceleration of such Contract) and, during the extended
repurchase period, you make prompt and full payment to us of all amounts which
become due under the terms of the Contract, which payments shall not constitute
a credit against the amount of Loss to be borne by you under this
Agreement.  Thereafter, your period for
the repurchase of such Contract under paragraph 10 shall be extended for ninety
(90) additional days, and your period for the repurchase of such Contract under
paragraph 11 shall be extended for sixty (60) additional days, provided that
the following conditions are satisfied at all times during such extended
repurchase period:

 

(i)                                     you
are not in default of your covenants or agreements under this Agreement or any
Assignment at any time during such extended repurchase period; and

 

(ii)                                  no
event or condition shall have occurred and be continuing or shall occur which,
in our sole determination, causes us to believe that the continued passage of
time may lead to an impairment or compromise of, or increase in risk associated
with (a) the security or value of the Contract, (b) the
enforceability of rights and or remedies under the Contract, any related
Obligor Guaranty, any other related document or agreement, or (c) the
creditworthiness of or collectability of claims against any Obligor or other
source of payment under the Contract.

 

In the event
that any of the foregoing conditions cease to be satisfied at any time during
the extended repurchase period, or if the extended repurchase period shall
lapse or expire, you will immediately pay to us the then-remaining unpaid
Repurchase Price for the affected Contract(s).

 

(c)                                  if
you have elected to extend the repurchase period for any Contract pursuant to
this paragraph 11A, and during the extended period for repurchase either (i) in
the case of a repurchase under paragraph 11, we receive full payment from the
Obligor under the Contract of the amount of all unpaid Payments upon which the
repurchase request is based, or (ii) in the case of a repurchase under
paragraph 10, we receive evidence satisfactory to us in our sole discretion,
that the Obligor has withdrawn the defense(s), offset(s) and counterclaim(s) upon
which the 

 

4

 

repurchase
request was based, then the request for repurchase of the contract shall
automatically be deemed null and of no further effect.  We will refund to you the amount of Payments
made by to us by Obligors which you have previously paid us in connection with
the extension of the time for repurchase.”

 

B.                                    Severability.

 

Any provision
of this Amendment which is prohibited by or is unlawful or unenforceable under
any applicable law of any jurisdiction, such provision shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof;
provided, however, that any such prohibition in any jurisdiction shall not
invalidate such provision in any other jurisdiction; provided, further, that
where the provisions of any such applicable law may be waived, they hereby are
waived by Aspen and SBCC to the full extent permitted by applicable law to the
end and that this Amendment shall be deemed to be a valid and binding agreement
in accordance with its terms.

 

C.                                    Counterparts.

 

This Amendment
may be executed in any number of counterparts, and each such counterpart shall
be deemed to be an original, but all such counterparts together shall
constitute one and the same Amendment.

 

D.                                    Governing Law.

 

This Amendment
shall be construed and governed according to the laws of (but not the choice of
law rules of) the State of Illinois.

 

E.                                     Binding Effect.

 

This Amendment
shall be binding upon and inure to the benefit of Aspen and SBCC and their
respective successors and assigns. 
Except as hereby amended, the Letter Agreement shall otherwise remain in
full force and effect.

 

IN WITNESS
WHEREOF, the parties hereto have caused their duly authorized officers to
execute this Amendment, effective as of the 3rd day of March.

 

	
   

  	
  ASPEN TECHNOLOGY, INC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/

  	
   

  
	
   

  	
  Title: Sr. V.P., Finance & Administration

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SANWA BUSINESS CREDIT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
   

  
	
   

  	
  Title: Vice President

  

 

5Exhibit 10.14(b)

 

SECOND AMENDMENT TO LETTER AGREEMENT

 

This Second
Amendment (“Amendment”) is entered into by and between Aspen Technology, Inc.
(“Aspen”) and Sanwa Business Credit Corporation (“SBCC”)
effective as of the 1st day of January, 1997.

 

WHEREAS,
Aspen and SBCC are parties to that certain letter agreement dated as of March 25,
1992, as amended by a First Amendment dated as of March 3, 1994, (the “Letter
Agreement”); and

 

WHEREAS,
Aspen and SBCC wish to amend the Letter Agreement as hereinafter provided;

 

NOW THEREFORE,
in consideration of the premises and for other good and valuable consideration
the receipt of which is hereby acknowledged, Aspen and SBCC hereby agree as
follows:

 

A.                                    Amendment.  The Letter Agreement is hereby amended as
follows:

 

1.                                      Paragraphs 1(n) and
1(o) are deleted in their entireties and replaced by the following:

 

“                                          (n)                                 ‘Net Contract Balance’ of a Domestic Contract purchased by us
means, at any time, the sum of (i) the present value of the Balance of
Payment of the Contract at that time, calculated using the Discount Rate for
such Contract, plus (ii) an Adjustment Amount for such Contract equal to
one percent (1.0%) of the amount determined under clause (i) of this
sentence.

 

                                                (o)                                 ‘Net Contract Balance’ of an International Contract means the
sum of (i) the greater of (A) the present value, calculated using the
Discount Rate for such Contract of the dollar payments due under the Contract
or due to us under any Currency Exchange Agreement existing with respect to
such Contract plus, if any Currency Exchange Agreement which has been entered
into with respect to the Contract is terminated or canceled in connection with
any indemnification, repurchase or our inability to transfer the Payments due
under the Contract to our counterparty under the Currency Exchange Agreement,
the amount payable to our counterparty under such Currency Exchange Agreement
on account of the termination or breakage of the Currency Exchange Agreement or
(B) the amount of lump sum dollar payment quoted or contracted for by us
under a Currency Exchange Agreement to acquire the amount(s) of
International Currency Payments due from us to our counterparty under a
Currency Exchange Agreement entered into with respect to the Contract, plus
(ii) an Adjustment Amount equal to one percent (1%) of the greater of
items (A) or (B) in clause (i) of this sentence plus (iii) the
amount if any of costs, fees or expenses incurred by us in connection with the
Contract which have not been reimbursed by the Obligor thereunder, plus (iv) interest
at the rate of twelve percent (12%) 

 

1

 

per annum on any expense, fee, cost or expenditure made or incurred by
us with respect to the Contract from the date of incurrence through the date of
your payment thereof.”

 

2.                                      Paragraph 1(q) is
deleted in its entirety.

 

3.                                      Paragraph 9 is
deleted in its entirety and replaced by the following:

 

“9.                                Contract
Prepayments.

 

                                                If
a Contract purchased by us is prepaid in full for any reason, we shall be
entitled to receive, in connection with the prepayment, an amount equal to the
Net Contract Balance of the Contract plus, if provided for in Schedule A to
this Agreement, a prepayment fee calculated in accordance with Schedule A (as
the same may be revised by us from time to time by written revisions).  This paragraph 9 shall not apply to any
payment required to be made under paragraph 10 or 11.”

 

4.                                      Paragraph 10 is
deleted in its entirety and replaced by the following:

 

“10.                         Ineligible
Contracts.

 

                                                In
the event any Contract shall not be an Eligible Contract at the time of our
purchase or shall thereafter cease to be an Eligible Contract you agree, upon
demand by us, to repurchase the Contract for cash for a price equal to the Net
Contract Balance of the Contract.  After
we receive the Net Contract Balance for any such Contract, we will reassign to
you all of our right, title and interest in the Contract and any Payments due
thereunder, without recourse to, and without representations or warranties by,
us of any kind whatsoever.”

 

5.                                      Paragraphs 11 and
11A of the Letter Agreement are deleted in their entireties and replaced by the
following:

 

“11.                         Obligor
Default Indemnities.

 

(a)                                 In
the event of an Obligor Default under any Contract purchased by us, and upon
our request in writing that you indemnify us with respect to such Contract, you
will, for Domestic Contracts, within ten (10) days after receipt of our
request and for International Contracts, within five (5) days after
receipt of our request, pay to us an indemnity amount equal to the Net Contract
Balance of the defaulted Contract, computed as of the time of your
payment.  Requests for indemnification
under this paragraph may be given to you from us by telecopy to you at 10 Canal
Park, Cambridge, Massachusetts 02141 to the attention of Chief Financial
Officer, and shall be deemed given upon the sending thereof, if followed by
letter confirmation given in the manner provided for notices under this
Agreement.

 

2

 

(b)                                 The
maximum amount of indemnity payments which you will be required to pay on
account of indemnity requests made under paragraph 11(a) in any “fiscal
year” (i.e. any twelve month period month period ending on June 30th)
shall be equal to ten percent (10%) percent of the aggregate Balance of
Payments (determined as of the first day of such fiscal year for Contracts
owned by us as of the first day of such fiscal year, and determined as of the
date of our purchase for Contracts purchased by us during such fiscal year); provided;
however, that if an Obligor Default occurs with respect to one or more
of the three (3) largest Contracts, the maximum amount of such indemnity
payments required for any fiscal year shall be equal to the greater of (i) the
amount determined under the formula above, or (ii) a sum equal to the
aggregate Balance of Payment of the three (3) largest Contracts
(determined as of the first day of such fiscal year for Contracts owned by us
as of the first day of such fiscal year, and determined as of the date of our
purchase for Contracts purchased by us during such fiscal year).  In making the foregoing computations, all
Contracts in a Group that have a common Obligor or Obligors owned, controlling,
controlled by or under common control with substantially the same person(s),
firm(s) or other entity, shall be treated as a single Contract for
purposes of determining the three (3) largest Contracts.

 

(c)                                  The
limitation on indemnity payments under the provisions of paragraph 11(b) pertains
solely to your indemnity obligations under paragraph 11(a).  Any payments other than paragraph 11(a) indemnities
will not be considered in determining whether the amount of your indemnity
payments are more or less than the applicable maximum amount allowed under
paragraph 11(b).

 

(d)                                 After
we receive an indemnity payment from you under paragraph 11(a) with
respect to a Contract, we will be relieved from any obligation (express or
implied) to pursue or attempt to receive any payments or recoveries, or enforce
any remedies, under or with respect to the Contract.  You will, upon notice to us, have the right
to pursue or attempt to receive payments or recoveries, and/or enforce remedies
under such Contract, provided that after giving credit to your indemnity
payment, the Net Contract Balance for such Contract is zero and further
provided that no such action will be commenced or maintained in our name.”

 

6.                                      The Letter
Agreement is amended by the addition of the following terms immediately
following Paragraph 11:

 

“11A.                Extension
of Indemnity/Repurchase Periods. 
Nullification of Indemnity/Repurchase Requests.

 

(a)                                 In
the event that (i) you are required to repurchase a Contract pursuant to
paragraph 10 of this Agreement due to the Obligor’s assertion of an offset,
counterclaim or defense based solely upon an alleged failure of the Software
covered by the Contract to perform acceptably or to comply with related
documentation or warranties, or (ii) you are required to indemnify us
pursuant to paragraph 11 of this Agreement because the Obligor has failed to
make any Payment under the Contract within twenty-five days (in the case of an
International Contract) or within thirty days (in the case of a Domestic
Contract) and provided that, in case of either (i) or (ii), you are
not in default of any of 

 

3

 

your covenants
or agreements under this Agreement or any Assignment, then you may elect
to extend the period for your repurchase of, or indemnification with respect
to, such Contract.

 

(b)                                 If
you elect to so extend the period for the repurchase of or indemnification with
respect to a Contract, you must notify us of your intent to do so prior to the
latest date for indemnification or repurchase and make payment to us of all
amounts which are due and/or past due under or with respect to the Contract
(excepting those which are due solely by reason of an acceleration of such
Contract) and, during the extended period, you make prompt and full payment to
us of all amounts which become due under the terms of the Contract, which
payments shall not constitute a credit against the amount of your maximum
indemnity liability under this Agreement. 
Thereafter, your period for the repurchase of such Contract under paragraph
10 shall be extended for ninety (90) additional days, and your period for
indemnification with respect to the Contract under paragraph 11 shall be
extended for sixty (60) additional days, provided that the following conditions
are satisfied at all times during such extended period:

 

(i)                                     you
are not in default of your covenants or agreements under this Agreement or any
Assignment at any time during such extended period; and

 

(ii)                                  no
event or condition shall have occurred and be continuing or shall occur which,
in our sole determination, causes us to believe that the continued passage of
time may lead to an impairment or compromise of, or increase in risk associated
with (a) the security or value of the Contract, (b) the
enforceability of rights and or remedies under the Contract, any related
Obligor Guaranty, any other related document or agreement, or (c) the
creditworthiness of or collectability of claims against any Obligor or other
source of payment under the Contract.

 

In the event
that any of the foregoing conditions cease to be satisfied at any time during
the extended repurchase/indemnity period, or if the extended period shall lapse
or expire, you will immediately pay to us the then-remaining unpaid Net
Contract Balance for the affected Contract(s), subject only to the limitations of
paragraph 11(b), if applicable.

 

(c)                                  If
you have elected to extend the repurchase/indemnity period for any Contract
pursuant to this paragraph 11A, and during the extended period either (i) in
the case of an indemnity under paragraph 11, we receive full payment from the
Obligor under the Contract of the amount of all unpaid Payments upon which the
indemnity request is based, or (ii) in the case of a repurchase under
paragraph 10, we receive evidence satisfactory to us in our sole discretion,
that the Obligor has withdrawn the defense(s), offset(s) and counterclaim(s) upon
which the purchase request was based, then the request for repurchase or
indemnification with respect to the Contract shall automatically be deemed null
and of no further effect.  We will refund
to you the amount of Payments made to us by Obligors which you have previously
paid us in connection with the extension of the time for repurchase or
indemnification.”

 

4

 

B.                                    Severability.

 

Any provision of this Amendment which is
prohibited by or is unlawful or unenforceable under any applicable law of any
jurisdiction, such provision shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof; provided, however, that any such prohibition in
any jurisdiction shall not invalidate such provision in any other jurisdiction;
provided, further, that where the provisions of any such applicable law may be
waived, they hereby are waived by Aspen and SBCC to the full extent permitted
by applicable law to the end and that this Amendment shall be deemed to be a
valid and binding agreement in accordance with its terms.

 

C.                                    Counterparts.

 

This Amendment
may be executed in any number of counterparts, and each such counterpart shall
be deemed to be an original, but all such counterparts together shall
constitute one and the same Amendment.

 

D.                                    Governing
Law.

 

This Amendment
shall be construed and governed according to the laws of (but not the choice of
law rules of) the State of Illinois.

 

E.                                     Binding Effect.

 

This Amendment
shall be binding upon and inure to the benefit of Aspen and SBCC and their
respective successors and assigns. 
Except as hereby amended, the Letter Agreement shall otherwise remain in
full force and effect.

 

IN WITNESS
WHEREOF, the parties hereto have caused their duly authorized officers to
execute this Amendment, effective as of the 1st day of January, 1997.

 

	
   

  	
  ASPEN TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SANWA BUSINESS CREDIT CORPORATION

  
					

 

5

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