Document:

Exhibit
10.8

 

AMENDMENT
NO. 1

 

TO

 

STOCKHOLDERS
AGREEMENT

 

THIS AMENDMENT NO. 1 TO STOCKHOLDERS AGREEMENT (this “Amendment”),
dated as of February 10, 2005, is entered into by and between MSC.Software
Corporation, a Delaware corporation (the “Company”), ValueAct Capital Master
Fund, L.P. (“Value Act Master Fund”), ValueAct Capital Partners Co-Investors,
L.P. (“ValueAct Co-Investors”), VA Partners, L.L.C. (“VA Partners”), Jeffrey W.
Ubben (“Ubben”), George F. Hamel, Jr. (“Hamel”), Peter H. Kamin (“Kamin,” and
together with ValueAct Master Fund, ValueAct Co-Investors, VA Partners, Ubben,
Hamel and Kamin, the “Stockholders”), Gregory P. Spivy and William J. Weyand.

 

WHEREAS, the parties hereto have entered into that
certain Stockholders Agreement, dated as of December 3, 2004 (the “Agreement”);
and

 

WHEREAS, the parties hereto desire to amend the
Agreement in certain respects.

 

NOW, THEREFORE, in consideration of the foregoing and
the mutual promises, representations, warranties, respective covenants and
agreements of the parties contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
each of the parties hereto, the parties hereto, intending to be legally bound
hereby, agree as follows:

 

1.                                       Section 1.2
of the Agreement is hereby amended in its entirety to read as follows:

 

“Section 1.2                            STOCKHOLDERS
DIRECTORS.  So long as the
Stockholders beneficially own in the aggregate
10% or more of the outstanding shares of Common Stock and this Agreement has
not otherwise been terminated in accordance with its terms, the Stockholders
shall have the right to designate one individual who is an affiliate (as
defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) (an “Affiliate”) of the Stockholders as a nominee
for election as a director of the Company (the “Affiliate Director”) and, if
William J. Weyand is not then a director of the Company, one individual who is
not an Affiliate of the Stockholders as a nominee for election as a director of
the Company (the “Independent Director” and together with the Affiliate
Director, the “Stockholders Directors”). 
The initial Affiliate Director shall be Mr. Spivy.  Any other individual designated as a
Stockholders Director must be reasonably acceptable to the Company.  So long as the Stockholders beneficially own in the aggregate 10% or more of the
outstanding shares of Common Stock and this Agreement has not otherwise been
terminated in accordance with its terms, the Company will support the election
of the Affiliate Director and, if applicable, the Independent Director at each
annual meeting of

 

 

stockholders of the Company.  The
Company shall use its reasonable best efforts to appoint the Affiliate Director
and, if applicable, the Independent Director as members of the Nominating and
Governance Committee of the Board of Directors of the Company and, if
applicable, the Independent Director as a member of the Audit Committee of the
Board of Directors of the Company.  At
such time as the Stockholders no longer beneficially own in the aggregate 10%
or more of the outstanding shares of Common Stock, each of the Stockholders
Directors will tender his resignation as a director of the Company.”

 

2.                                       Section 4.1(a), (b) and (c) of the
Agreement are hereby amended in their entirety to read as follows :

 

“(a)                            Except
upon the request of the Stockholders, either the Affiliate Director or, if
applicable, the Independent Director is not nominated as a director by the
Nominating and Governance Committee of the Board of Directors of the Company or
otherwise included as a nominee for director in any proxy statement sent by the
Company in connection with any meeting of the stockholders of the Company for
the election of directors.

 

(b)                                 Either
of the Affiliate Director or, if applicable, the Independent Director is no
longer a member of the Board of Directors of the Company; provided that in the
case of the death or resignation of either of the Stockholders Directors, the
Stockholders shall have promptly given written notice to the Company of a
replacement Stockholders Director, and such replacement Stockholders Director
shall have not been appointed within ten (10) business days after such written
notice; provided further that (i) any person designated by the Stockholders to
replace an Affiliate Director must be an Affiliate Director, (ii) any person
designated by the Stockholders as an Independent Director must be an
Independent Director and the Stockholders must deliver to the Company written
representations and warranties regarding the Independent Director substantially
the same as set forth in the last sentence of Section 2.1, and (iii) any
individual designated as an Affiliate Director (other than Mr. Spivy) or
Independent Director must be reasonably acceptable to the Company.

 

(c)                                  Except
in the case of death or resignation, (i) either of the Affiliate Director or,
if applicable, the Independent Director is no longer a member of the Nominating
and Governance Committee of the Board of Directors of the Company or (ii) if
applicable, the Independent Director is no longer a member of the Audit
Committee of the Board of Directors of the Company.”

 

3.                                       Except as
expressly set forth in this Amendment, the terms and provisions of the
Agreement shall remain in full force and effect.

 

2

 

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

 

 

	
   

  	
  MSC.SOFTWARE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ JOHN LASKEY

  	
   

  
	
   

  	
   

  	
  Name: John Laskey

  	
   

  
	
   

  	
   

  	
  Title: 
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  STOCKHOLDERS:

  
	
   

  	
   

  
	
   

  	
  ValueAct Capital Master Fund, L.P., by

  
	
   

  	
  VA Partners, L.L.C., its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ GEORGE F. HAMEL, JR.

  	
   

  
	
   

  	
   

  	
  Name: 
  George
  F. Hamel, Jr.

  	
   

  
	
   

  	
   

  	
  Title: 
  Managing Member

  	
   

  
	
   

  	
   

  
	
   

  	
  ValueAct Capital Partners Co-Investors,
  L.P.,

  
	
   

  	
  by VA Partners, L.L.C., its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ GEORGE F. HAMEL, JR.

  	
   

  
	
   

  	
   

  	
  Name: 
  George
  F. Hamel, Jr.

  	
   

  
	
   

  	
   

  	
  Title: 
  Managing Member

  	
   

  
	
   

  	
   

  
	
   

  	
  VA Partners, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ GEORGE F. HAMEL, JR.

  	
   

  
	
   

  	
   

  	
  Name: 
  George
  F. Hamel, Jr.

  	
   

  
	
   

  	
   

  	
  Title: 
  Managing Member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ JEFFREY W. UBBEN

  	
   

  
	
   

  	
  Jeffrey W. Ubben

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ GEORGE F. HAMEL, JR.

  	
   

  
	
   

  	
  George F. Hamel, Jr.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ P. H. KAMIN

  	
   

  
	
   

  	
  Peter H.
  Kamin

  	
   

  

 

S-1

 

	
   

  	
  /s/ GREGORY P. SPIVY

  	
   

  
	
   

  	
  Gregory P. Spivy

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ WILLIAM J. WEYAND

  	
   

  
	
   

  	
  William J. Weyand

  	
   

  

 

2Exhibit 10.1

 

 

DEBTOR IN POSSESSION

LOAN AND SECURITY AGREEMENT

 

 

by and among

 

ULTIMATE ELECTRONICS, INC.

 

and

 

EACH OF ITS SUBSIDIARIES THAT ARE SIGNATORIES
HERETO

as debtors and debtors in possession and as joint and several Borrowers,

 

THE LENDERS THAT ARE SIGNATORIES HERETO

as the Lenders,

 

and

 

WELLS FARGO RETAIL FINANCE, LLC

as Arranger and Agent

 

and

 

NATIONAL CITY BUSINESS CREDIT, INC.

as Documentation Agent

 

and

 

GENERAL ELECTRIC CAPITAL CORPORATION

as Syndication Agent

 

 

Dated as of January 14, 2005

 

 

 

 

FIRST AMENDMENT TO

DEBTOR IN POSSESSION LOAN AND SECURITY AGREEMENT

 

FIRST AMENDMENT TO DEBTOR IN POSSESSION LOAN
AND SECURITY AGREEMENT, dated as of January         ,
2005 (this “Amendment”), by and among
Ultimate Electronics, Inc., a Delaware corporation and a debtor and debtor in
possession under Chapter 11 of the Bankruptcy Code (“Parent”), Ultimate Intangibles Corp., a Colorado
corporation and a debtor and debtor in possession under Chapter 11 of the
Bankruptcy Code (“Intangibles”),
Ultimate Leasing Corp., a Colorado corporation and a debtor and debtor in
possession under Chapter 11 of the Bankruptcy Code (“Leasing”), Fast Trak Inc., a Minnesota corporation and
a debtor and debtor in possession under Chapter 11 of the Bankruptcy Code (“Fast Trak”), Ultimate Electronics
Partners Corp., a Colorado corporation and a debtor and debtor in possession
under Chapter 11 of the Bankruptcy Code (“Electronics
Partners”), Ultimate Electronics Leasing LP, a Texas limited
partnership and a debtor and debtor in possession under Chapter 11 of the
Bankruptcy Code (“Electronics Leasing”),
and Ultimate Electronics Texas LP, a Texas limited partnership and a debtor and
debtor in possession under Chapter 11 of the Bankruptcy Code (“Electronics Texas” and together with
Parent, Intangibles, Leasing, Fast Trak, Electronics Partners and Electronics
Leasing, the “Borrowers”),
the lenders identified on the signature pages hereof (such lenders, together
with their respective successors and assigns, are referred to hereinafter each
individually as a “Lender” and collectively as the “Lenders”) and
Wells Fargo Retail Finance, LLC, a Delaware limited liability company, in its
capacity as agent (hereinafter in such capacity, the “Agent”), for itself and the other Lenders.

 

WHEREAS, the
Borrowers, the Lenders, and the Agent are parties to that certain Debtor In
Possession Loan and Security Agreement dated as of January 14, 2005 (as the
same may be amended, amended and restated or otherwise modified and in effect
from time to time, the “Loan Agreement”); and

 

WHEREAS, the parties
desire to amend the Loan Agreement as hereinafter set forth.

 

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

 

§1.          Defined Terms.  Terms not otherwise defined herein which are
defined in the Loan Agreement shall have the same respective meanings herein as
therein.

 

§2.          Amendment to Cover Page
of the Loan Agreement.  The Loan Agreement is hereby amended by
deleting the cover page thereto in its entirety and substituting in lieu
thereof the cover page attached as Exhibit  A hereto.

 

§3.          Amendment to Section 1.1 of the Loan Agreement.

 

(a)           Section
1.1 of the Loan Agreement is hereby amended by deleting the definitions of “Blocked
Account Agreements”, “Standstill Termination Date” and “Voidable Transfer” in
their entirety and inserting the following therefor:

 

““Blocked Account Agreements” means
such blocked account/deposit account control agreements, in form and substance
satisfactory to the Agent, entered into among a Borrower, any depository
institution in which the Borrower maintains any depository account and the
Agent, together with all amendments thereto.”

 

 

““Standstill Termination Date” means
any date (a) on which an Event of Default exists under Section 9.1 and
has existed for at least fifteen (15) consecutive days prior to such date, (b)
on which Excess Availability is less than $5,000,000 and (i) fifteen (15) days
prior to such date Excess Availability was less than $5,000,000 and during such
fifteen (15) day period there was no period of three (3) consecutive days in
which Excess Availability was equal to or exceeded $5,000,000 or (ii) during
the forty-five (45) days prior to such date Excess Availability was less than
$5,000,000 for twenty-five (25) or more days during such period, or (c) which
is thirty (30) days after the occurrence of a continuing Event of Default in
respect of Section 7.2(a), Section 7.3(a), (b), (c)
or (d), or Section 8.23 and the Tranche B Lenders have given
notice to the Agent that such Event of Default has occurred and is continuing,
unless any such Event of Default is cured within such thirty (30) day period.”

 

““Voidable Transfer” has the meaning
set forth in Section 18.8.”

 

(b)           Section
1.1 of the Loan Agreement is hereby further amended by adding the following new
definition of “Agency Account Agreements” in the appropriate alphabetical
order:

 

““Agency Account Agreements” means
such agency account agreements, in form and substance satisfactory to the
Agent, entered into among a Borrower, any depository institution in which the
Borrower maintains any depository account and the Agent, together with all
amendments thereto.”

 

(c)           Section
1.1 of the Loan Agreement is hereby further amended by deleting the amount “$35,000”
in the definition of “Carve Out” and substituting in lieu therefor the amount “$100,000”.

 

(d)           Section
1.1 of the Loan Agreement is hereby further amended by deleting clause (i) of
the definition of “Lender Group Expenses” inserting the following therefor:

 

“(i) actual and reasonable costs and expenses
(including attorney’s fees and expenses) incurred by the Lenders in connection
with the negotiation, preparation, execution and initial syndication of this
Agreement and the other Loan Documents, and”.

 

(e)           Section
1.1 of the Loan Agreement is hereby further amended by deleting the words “Prior
Permitted Liens” in the definition of “Permitted Liens” and substituting in
lieu thereof the words “Permitted Prior Liens”.

 

§4.          Amendment to Section 2.5
of the Loan Agreement.

 

(a)           Section
2.5(b) of the Loan Agreement is hereby amended by deleting Section 2.5(b) in
its entirety and inserting the following therefor:

 

“(b)         Mandatory
Prepayments.  Concurrently
with the receipt by the Borrowers of Net Cash Proceeds from any asset
dispositions (other than asset dispositions permitted pursuant to Section
8.4), casualties and condemnations and equity issuances (other than the
Wattles Equity Investment), the Borrowers shall pay to the Agent, for the
accounts of the Lenders, an amount equal to one hundred percent

 

 

(100%) of such proceeds in the manner set
forth in Section 2.5(d).  Upon receipt thereof, the aggregate Revolving
Credit Commitments and the Total Commitment shall each be permanently reduced
by such amount.”

 

(b)           Section
2.5(d)(i)(I) of the Loan Agreement is hereby amended by deleting Section
2.5(d)(i)(I) in its entirety and inserting the following therefor:

 

“(I)          [Intentionally
Omitted]”

 

§5.          Amendment to Section 2.6 of the Loan Agreement. 
Section 2.6 of the Loan Agreement is hereby amended by deleting the word
“either” immediately before the phrase “the Dollar limitations” in the first
sentence thereof.

 

§6.          Amendment to Section 4.1 of the Loan Agreement.  Section 4.1(b) of the Loan Agreement is
hereby amended by adding the phrase “(the following, collectively, the “Collateral”)”
immediately after the phrase “shall at times be secured by”.

 

§7.          Amendment to Section
7.14 of the Loan Agreement.  Section 7.14 of the Loan Agreement is hereby
amended by deleting Section 7.14 in its entirety and substituting therefor:

 

“7.14      Existence.  Unless otherwise consented to by the Agent
and the Required Lenders, all times preserve and keep in full force and effect
each Borrower’s valid existence and good standing and any rights and franchises
material to Borrowers’ businesses.”

 

§8.          Amendment to Section
7.26 of the Loan Agreement.  Section 7.26 of the Loan Agreement is hereby
amended by replacing the phrase “Within fifteen (15) days after the Closing
Date,” contained in such Section with the phrase “By no later than February 11,
2005,”.

 

§9.          Amendment to Section 8.5
of the Loan Agreement.  Section 8.5 of the Loan Agreement is hereby
amended by deleting the word “and” immediately before the phrase “form any new
Subsidiary” and substituting therefor “or”.

 

§10.        Amendment to Section
16.1 of the Loan Agreement.  Section 16.1(d) of the Loan Agreement is
hereby amended by adding (i) “2.2(i)” immediately before the reference to “2.3”
and (ii) “2.5(d)” immediately before the reference to “7.2”.

 

§11.        Amendment to Section 17
of the Loan Agreement.  Section 17 of the Loan Agreement is hereby
amended by adding the following new Section 17.24 immediately at the end of
Section 17:

 

“17.24    Documentation
Agent and Syndication Agent. 
National City Business Credit, Inc., in its capacity as Documentation
Agent, and General Electric Capital Corporation, in its capacity as Syndication
Agent, shall have no duties or responsibilities and shall incur no liability
under this Loan Agreement or any other Loan Document.”

 

§12.        Conditions to Effectiveness.  This Amendment shall be deemed to be
effective on the date hereof upon the satisfaction of the following conditions
precedent:

 

(a)           receipt
by the Agent of a fully executed counterpart hereof executed by each of the
Borrowers and Lenders; and

 

 

(b)           the
Borrowers shall have paid all unpaid fees and expenses of Bingham McCutchen
LLP, special counsel to the Agent, to the extent that copies of invoices for
such fees and expenses have been delivered to the Borrowers.

 

§13.        Representations and Warranties.  Each of the Borrowers hereby represents and
warrants to the Lenders as follows:

 

(a)           Ratification, Etc.  Except as expressly amended hereby, the Loan
Agreement, the other Loan Documents and all documents, instruments and
agreements related thereto, are hereby ratified and confirmed in all respects
and shall continue in full force and effect. 
The Loan Agreement, together with this Amendment, shall be read and
construed as a single agreement.  All
references in the Loan Documents to the Loan Agreement or any other Loan
Document shall hereafter refer to the Loan Agreement or any other Loan Document
as amended hereby.

 

(b)           Authority, Etc.  The execution and delivery by each of the
Borrowers of this Amendment and the performance by each of the Borrowers of all
of their agreements and obligations under the Loan Agreement as amended and the
other Loan Documents hereby are within the corporate, limited partnership and
limited liability company authority of each of the Borrowers and have been duly
authorized by all necessary corporate, limited partnership and limited
liability company action on the part of the Borrowers.

 

(c)           Enforceability of
Obligations.  This Amendment and the
Loan Agreement as amended and the other Loan Documents hereby constitute the
legal, valid and binding obligations of the Borrowers enforceable against the
Borrowers in accordance with their terms, except as enforceability is limited
by bankruptcy, insolvency, reorganization, moratorium or other laws relating to
or affecting generally the enforcement of, creditors’ rights and except to the
extent that availability of the remedy of specific performance or injunctive
relief is subject to the discretion of the court before which any proceeding
therefor may be brought.

 

§14.        No
Other Amendments.  Except as expressly provided in this Amendment, all of the terms
and conditions of the Loan Agreement and the other Loan Documents remain in
full force and effect.  Nothing
contained in this Amendment shall in any way prejudice, impair or effect any
rights or remedies of any Lender or the Borrowers under the Loan Agreement or
the other Loan Documents.

 

§15.        Expenses. 
All costs and expenses incurred or sustained by the Agent in connection
with this Amendment, including the fees and disbursements of legal counsel for
the Agent in producing, reproducing and negotiating the Amendment, will be for
the account of the Borrowers whether or not this Amendment is consummated.

 

§16.        Execution in Counterparts; Delivery by Facsimile. 
This Amendment may be executed in any number of counterparts, each of
which shall be deemed an original, but which together shall constitute one
instrument.  Delivery of a counterpart
signature page hereof by facsimile shall be deemed an original signature page.

 

§17.        Miscellaneous. 
   THE VALIDITY OF THIS AMENDMENT,
THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF, AND THE RIGHTS OF THE
PARTIES HERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR RELATED HERETO
SHALL BE DETERMINED UNDER, GOVERNED

 

 

BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THE APPLICATION OF THE
BANKRUPTCY CODE IS MANDATORY.  The captions in this Amendment are for
convenience of reference only and shall not define or limit the provisions
hereof.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK]

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