Document:

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                                                                    EXHIBIT 10.5

                             SIMPLEX SOLUTIONS, INC.

                        2001 EMPLOYEE STOCK PURCHASE PLAN

         The following constitute the provisions of the Employee Stock Purchase
Plan of Simplex Solutions, Inc.

         1. Purpose. The purpose of the Plan is to provide employees of the
Company and its Designated Subsidiaries with an opportunity to purchase Common
Stock of the Company through accumulated payroll deductions. It is the intention
of the Company to have the Plan qualify as an "Employee Stock Purchase Plan"
under Section 423 of the Code. The provisions of the Plan, accordingly, shall be
construed so as to extend and limit participation in a uniform and
nondiscriminatory basis consistent with the requirements of Section 423.

         2. Definitions.

                  (a) "Administrator" shall mean the Board or any Committee
designated by the Board to administer the plan pursuant to Section 14.

                  (b) "Board" shall mean the Board of Directors of the Company.

                  (c) "Change of Control" shall mean the occurrence of any of
the following events:

                               (i) Any "person" (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) becomes the "beneficial owner" (as
defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of
securities of the Company representing fifty percent (50%) or more of the total
voting power represented by the Company's then outstanding voting securities; or

                               (ii) The consummation of the sale or disposition
by the Company of all or substantially all of the Company's assets; or

                               (iii) The consummation of a merger or
consolidation of the Company, with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity or its parent) at least fifty percent (50%) of the total voting
power represented by the voting securities of the Company, or such surviving
entity or its parent outstanding immediately after such merger or consolidation.

                               (iv) A change in the composition of the Board, as
a result of which fewer than a majority of the Directors are Incumbent
Directors. "Incumbent Directors" shall mean Directors who either (A) are
Directors of the Company, as applicable, as of the date hereof, or (B) are
elected, or nominated for election, to the Board with the affirmative votes of
at least a majority of those Directors whose election or nomination was not in
connection with any transaction described
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in subsections (i), (ii) or (iii) or in connection with an actual or threatened
proxy contest relating to the election of directors of the Company.

                  (d) "Code" shall mean the Internal Revenue Code of 1986, as
amended.

                  (e) "Committee" means a committee of the Board appointed by
the Board in accordance with Section 14 hereof.

                  (f) "Common Stock" shall mean the common stock of the Company.

                  (g) "Company" shall mean Simplex Solutions, Inc., a Delaware
corporation.

                  (h) "Compensation" shall mean all base straight time gross
earnings, bonuses and 50% of commissions but exclusive of payments for incentive
compensation, overtime, shift premium and other compensation.

                  (i) "Designated Subsidiary" shall mean any Subsidiary selected
by the Administrator as eligible to participate in the Plan.

                  (j) "Eligible Employee" shall mean any individual who is a
common law employee of the Company or any Designated Subsidiary and whose
customary employment with the Company or Designated Subsidiary is at least
twenty (20) hours per week and more than five (5) months in any calendar year.
For purposes of the Plan, the employment relationship shall be treated as
continuing intact while the individual is on sick leave or other leave of
absence approved by the Company. Where the period of leave exceeds 90 days and
the individual's right to reemployment is not guaranteed either by statute or by
contract, the employment relationship shall be deemed to have terminated on the
91st day of such leave.

                  (k) "Exercise Date" shall mean the first Trading Day on or
after May 1st and November 1st of each year. The first Exercise Date under the
Plan shall be the first Trading Day on or after November 1, 2001.

                  (l) "Fair Market Value" shall mean, as of any date, the value
of Common Stock determined as follows:

                               (i) If the Common Stock is listed on any
established stock exchange or a national market system, including without
limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The
Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for
such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or system on the date of determination, as reported in The Wall Street
Journal or such other source as the Board deems reliable;

                               (ii) If the Common Stock is regularly quoted by a
recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean of the closing bid and asked prices for the
Common Stock on the date of determination, as reported in The Wall Street
Journal or such other source as the Board deems reliable;

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                               (iii) In the absence of an established market for
the Common Stock, the Fair Market Value thereof shall be determined in good
faith by the Board; or

                               (iv) For purposes of the Offering Date of the
first Offering Period under the Plan, the Fair Market Value shall be the initial
price to the public as set forth in the final prospectus included within the
registration statement in Form S-1 filed with the Securities and Exchange
Commission for the initial public offering of the Company's Common Stock (the
"Registration Statement").

                  (m) "Offering Date" shall mean the first Trading Day of each
Offering Period.

                  (n) "Offering Periods" shall mean the periods of approximately
twenty-four (24) months during which an option granted pursuant to the Plan may
be exercised, commencing on the first Trading Day on or after May 1st and
November 1st of each year and terminating on the first Trading Day on or after
the May 1st and November 1st Offering Period commencement date approximately
twenty-four months later; provided, however, that the first Offering Period
under the Plan shall commence with the first Trading Day on or after the date on
which the Securities and Exchange Commission declares the Company's Registration
Statement effective and ending on the first Trading Day on or after the earlier
of (i) May 1st, 2003 or (ii) twenty-seven (27) months from the beginning of
the first Offering Period. The duration and timing of Offering Periods may be
changed pursuant to Section 4 of this Plan.

                  (o) "Plan" shall mean this 2001 Employee Stock Purchase Plan.

                  (p) "Purchase Period" shall mean the approximately six (6)
month period commencing on one Exercise Date and ending with the next Exercise
Date, except that the first Purchase Period of any Offering Period shall
commence on the Offering Date and end with the next Exercise Date.

                  (q) "Purchase Price" shall mean 85% of the Fair Market Value
of a share of Common Stock on the Offering Date or on the Exercise Date,
whichever is lower; provided however, that the Purchase Price may be adjusted by
the Administrator pursuant to Section 20.

                  (r) "Subsidiary" shall mean a "subsidiary corporation,"
whether now or hereafter existing, as defined in Section 424(f) of the Code.

                  (s) "Trading Day" shall mean a day on which national stock
exchanges and the Nasdaq System are open for trading.

         3. Eligibility.

                  (a) First Offering Period. Any individual who is an Eligible
Employee immediately prior to the first Offering Period shall be automatically
enrolled in the first Offering Period.

                  (b) Subsequent Offering Periods. Any Eligible Employee on a
given Offering Date shall be eligible to participate in the Plan.

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                  (c) Limitations. Any provisions of the Plan to the contrary
notwithstanding, no Eligible Employee shall be granted an option under the Plan
(i) to the extent that, immediately after the grant, such Eligible Employee (or
any other person whose stock would be attributed to such Eligible Employee
pursuant to Section 424(d) of the Code) would own capital stock of the Company
and/or hold outstanding options to purchase such stock possessing five percent
(5%) or more of the total combined voting power or value of all classes of the
capital stock of the Company or of any Subsidiary, or (ii) to the extent that
his or her rights to purchase stock under all employee stock purchase plans of
the Company and its subsidiaries accrues at a rate which exceeds Twenty-Five
Thousand Dollars ($25,000) worth of stock (determined at the fair market value
of the shares at the time such option is granted) for each calendar year in
which such option is outstanding at any time.

         4. Offering Periods. The Plan shall be implemented by consecutive,
overlapping Offering Periods with a new Offering Period commencing on the first
Trading Day on or after May 1st and November 1st each year, or on such other
date as the Board shall determine, and continuing thereafter until terminated in
accordance with Section 20 hereof; provided, however, that the first Offering
Period under the Plan shall commence with the first Trading Day on or after the
date on which the Securities and Exchange Commission declares the Company's
Registration Statement effective and ending on the first Trading Day on or after
the earlier of (i) May 1st, 2003 or (ii) twenty-seven (27) months from the
beginning of the first Offering Period. The Board shall have the power to change
the duration of Offering Periods (including the commencement dates thereof) with
respect to future offerings without stockholder approval if such change is
announced prior to the scheduled beginning of the first Offering Period to be
affected thereafter.

         5. Participation.

                  (a) First Offering Period. An Eligible Employee shall be
entitled to participate in the first Offering Period only if such individual
submits a subscription agreement authorizing payroll deductions in the form of
Exhibit A to this Plan (i) no earlier than the effective date of the Form S-8
registration statement with respect to the issuance of Common Stock under this
Plan and (ii) no later than five (5) business days from the effective date of
such S-8 registration statement (the "Enrollment Window"). An Eligible
Employee's failure to submit the subscription agreement during the Enrollment
Window shall result in the automatic termination of such individual's
participation in the Offering Period.

                  (b) Subsequent Offering Periods. An Eligible Employee may
become a participant in the Plan by completing a subscription agreement
authorizing payroll deductions in the form of Exhibit A to this Plan and filing
it with the Company's payroll office prior to the applicable Offering Date.

         6. Payroll Deductions.

                  (a) At the time a participant files his or her subscription
agreement, he or she shall elect to have payroll deductions made on each pay day
during the Offering Period in an amount not exceeding 15% of the Compensation
which he or she receives on each pay day during the Offering Period; provided,
however, that should a pay day occur on an Exercise Date, a participant shall
have the payroll deductions made on such day applied to his or her account under
the new

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Offering Period or Purchase Period, as the case may be. A participant's
subscription agreement shall remain in effect for successive Offering Periods
unless terminated as provided in Section 10 hereof.

                  (b) Payroll deductions for a participant shall commence on the
first payday following the Offering Date and shall end on the last payday in the
Offering Period to which such authorization is applicable, unless sooner
terminated by the participant as provided in Section 10 hereof; provided,
however, that for the first Offering Period, payroll deductions shall commence
on the first payday on or following the end of the Enrollment Window.

                  (c) All payroll deductions made for a participant shall be
credited to his or her account under the Plan and shall be withheld in whole
percentages only. A participant may not make any additional payments into such
account.

                  (d) A participant may discontinue his or her participation in
the Plan as provided in Section 10 hereof, or may increase or decrease the rate
of his or her payroll deductions during the Offering Period by completing or
filing with the Company a new subscription agreement authorizing a change in
payroll deduction rate. The Administrator may, in its discretion, limit the
nature and/or number of participation rate changes during any Offering Period.
The change in rate shall be effective with the first full payroll period
following five (5) business days after the Company's receipt of the new
subscription agreement unless the Company elects to process a given change in
participation more quickly.

                  (e) Notwithstanding the foregoing, to the extent necessary to
comply with Section 423(b)(8) of the Code and Section 3(b) hereof, a
participant's payroll deductions may be decreased to zero percent (0%) at any
time during a Purchase Period. Payroll deductions shall recommence at the rate
provided in such participant's subscription agreement at the beginning of the
first Purchase Period which is scheduled to end in the following calendar year,
unless terminated by the participant as provided in Section 10 hereof.

                  (f) At the time the option is exercised, in whole or in part,
or at the time some or all of the Company's Common Stock issued under the Plan
is disposed of, the participant must make adequate provision for the Company's
federal, state, or other tax withholding obligations, if any, which arise upon
the exercise of the option or the disposition of the Common Stock. At any time,
the Company may, but shall not be obligated to, withhold from the participant's
compensation the amount necessary for the Company to meet applicable withholding
obligations, including any withholding required to make available to the Company
any tax deductions or benefits attributable to sale or early disposition of
Common Stock by the Eligible Employee.

         7. Grant of Option. On the Offering Date of each Offering Period, each
Eligible Employee participating in such Offering Period shall be granted an
option to purchase on each Exercise Date during such Offering Period (at the
applicable Purchase Price) up to a number of shares of the Company's Common
Stock determined by dividing such Eligible Employee's payroll deductions
accumulated prior to such Exercise Date and retained in the Participant's
account as of the Exercise Date by the applicable Purchase Price; provided that
in no event shall an Eligible Employee be permitted to purchase during each
Purchase Period more than 1,250 shares of the Company's Common Stock (subject to
any adjustment pursuant to Section 19), and provided further that such purchase
shall be subject to the limitations set forth in Sections 3(b) and 12 hereof.
The

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Eligible Employee may accept the grant of such option by turning in a completed
Subscription Agreement (attached hereto as Exhibit A) to the Company on or prior
to an Offering Date, or with respect to the first Offering Period, prior to the
last day of the Enrollment Window. The Administrator may, for future Offering
Periods, increase or decrease, in its absolute discretion, the maximum number of
shares of the Company's Common Stock an Eligible Employee may purchase during
each Purchase Period of such Offering Period. Exercise of the option shall occur
as provided in Section 8 hereof, unless the participant has withdrawn pursuant
to Section 10 hereof. The option shall expire on the last day of the Offering
Period.

         8. Exercise of Option.

                  (a) Unless a participant withdraws from the Plan as provided
in Section 10 hereof, his or her option for the purchase of shares shall be
exercised automatically on the Exercise Date, and the maximum number of full
shares subject to option shall be purchased for such participant at the
applicable Purchase Price with the accumulated payroll deductions in his or her
account. No fractional shares shall be purchased; any payroll deductions
accumulated in a participant's account which are not sufficient to purchase a
full share shall be retained in the participant's account for the subsequent
Purchase Period or Offering Period, subject to earlier withdrawal by the
participant as provided in Section 10 hereof. Any other funds left over in a
participant's account after the Exercise Date shall be returned to the
participant. During a participant's lifetime, a participant's option to purchase
shares hereunder is exercisable only by him or her.

                  (b) If the Administrator determines that, on a given Exercise
Date, the number of shares with respect to which options are to be exercised may
exceed (i) the number of shares of Common Stock that were available for sale
under the Plan on the Offering Date of the applicable Offering Period, or (ii)
the number of shares available for sale under the Plan on such Exercise Date,
the Administrator may in its sole discretion (x) provide that the Company shall
make a pro rata allocation of the shares of Common Stock available for purchase
on such Offering Date or Exercise Date, as applicable, in as uniform a manner as
shall be practicable and as it shall determine in its sole discretion to be
equitable among all participants exercising options to purchase Common Stock on
such Exercise Date, and continue all Offering Periods then in effect, or (y)
provide that the Company shall make a pro rata allocation of the shares
available for purchase on such Offering Date or Exercise Date, as applicable, in
as uniform a manner as shall be practicable and as it shall determine in its
sole discretion to be equitable among all participants exercising options to
purchase Common Stock on such Exercise Date, and terminate any or all Offering
Periods then in effect pursuant to Section 20 hereof. The Company may make pro
rata allocation of the shares available on the Offering Date of any applicable
Offering Period pursuant to the preceding sentence, notwithstanding any
authorization of additional shares for issuance under the Plan by the Company's
stockholders subsequent to such Offering Date.

         9. Delivery. As soon as reasonably practicable after each Exercise Date
on which a purchase of shares occurs, the Company shall arrange the delivery to
each participant the shares purchased upon exercise of his or her option in a
form determined by the Administrator.

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         10. Withdrawal.

                  (a) A participant may withdraw all but not less than all the
payroll deductions credited to his or her account and not yet used to exercise
his or her option under the Plan at any time by giving written notice to the
Company in the form of Exhibit B to this Plan. All of the participant's payroll
deductions credited to his or her account shall be paid to such participant
promptly after receipt of notice of withdrawal and such participant's option for
the Offering Period shall be automatically terminated, and no further payroll
deductions for the purchase of shares shall be made for such Offering Period. If
a participant withdraws from an Offering Period, payroll deductions shall not
resume at the beginning of the succeeding Offering Period unless the participant
delivers to the Company a new subscription agreement.

                  (b) A participant's withdrawal from an Offering Period shall
not have any effect upon his or her eligibility to participate in any similar
plan which may hereafter be adopted by the Company or in succeeding Offering
Periods which commence after the termination of the Offering Period from which
the participant withdraws.

         11. Termination of Employment. In the event a participant ceases to be
an Eligible Employee of the Company or any Designated Subsidiary, as applicable,
his or her option shall remain exercisable for a period of three (3) months from
the date of such Eligible Employee's termination. Upon the expiration of such
three (3) month period or a date prior to the expiration of such three (3) month
period if requested by the participant, any payroll deductions credited to such
participant's account during the Offering Period but not yet used to purchase
shares under the Plan shall be returned to such participant or, in the case of
his or her death, to the person or persons entitled thereto under Section 15
hereof, and such participant's option shall be automatically terminated.

         12. Interest. No interest shall accrue on the payroll deductions of a
participant in the Plan.

         13. Stock.

                  (a) Subject to adjustment upon changes in capitalization of
the Company as provided in Section 19 hereof, the maximum number of shares of
the Company's Common Stock which shall be made available for sale under the Plan
shall be 500,000 shares plus an annual increase to be added on the first day of
the Company's fiscal year beginning in 2002, equal to the lesser of (i)
1,200,000 shares, (ii) 3% of the outstanding shares on such date or (iii) an
amount determined by the Administrator.

                  (b) Until the shares are issued (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company), a participant shall only have the rights of an unsecured
creditor with respect to such shares, and no right to vote or receive dividends
or any other rights as a stockholder shall exist with respect to such shares.

                  (c) Shares to be delivered to a participant under the Plan
shall be registered in the name of the participant or in the name of the
participant and his or her spouse.

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         14. Administration. The Administrator shall administer the Plan and
shall have full and exclusive discretionary authority to construe, interpret and
apply the terms of the Plan, to determine eligibility and to adjudicate all
disputed claims filed under the Plan. Every finding, decision and determination
made by the Administrator shall, to the full extent permitted by law, be final
and binding upon all parties.

         15. Designation of Beneficiary.

                  (a) A participant may file a written designation of a
beneficiary who is to receive any shares and cash, if any, from the
participant's account under the Plan in the event of such participant's death
subsequent to an Exercise Date on which the option is exercised but prior to
delivery to such participant of such shares and cash. In addition, a participant
may file a written designation of a beneficiary who is to receive any cash from
the participant's account under the Plan in the event of such participant's
death prior to exercise of the option. If a participant is married and the
designated beneficiary is not the spouse, spousal consent shall be required for
such designation to be effective.

                  (b) Such designation of beneficiary may be changed by the
participant at any time by written notice. In the event of the death of a
participant and in the absence of a beneficiary validly designated under the
Plan who is living at the time of such participant's death, the Company shall
deliver such shares and/or cash to the executor or administrator of the estate
of the participant, or if no such executor or administrator has been appointed
(to the knowledge of the Company), the Company, in its discretion, may deliver
such shares and/or cash to the spouse or to any one or more dependents or
relatives of the participant, or if no spouse, dependent or relative is known to
the Company, then to such other person as the Company may designate.

                  (c) All beneficiary designations shall be in such form and
manner as the Administrator may designate from time to time.

         16. Transferability. Neither payroll deductions credited to a
participant's account nor any rights with regard to the exercise of an option or
to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 15 hereof) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without
effect, except that the Company may treat such act as an election to withdraw
funds from an Offering Period in accordance with Section 10 hereof.

         17. Use of Funds. All payroll deductions received or held by the
Company under the Plan may be used by the Company for any corporate purpose, and
the Company shall not be obligated to segregate such payroll deductions. Until
shares are issued, participants shall only have the rights of an unsecured
creditor.

         18. Reports. Individual accounts shall be maintained for each
participant in the Plan. Statements of account shall be given to participating
Eligible Employees at least annually, which statements shall set forth the
amounts of payroll deductions, the Purchase Price, the number of shares
purchased and the remaining cash balance, if any.

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         19. Adjustments Upon Changes in Capitalization, Dissolution,
Liquidation, Merger or Change of Control.

                  (a) Changes in Capitalization. Subject to any required action
by the stockholders of the Company, the maximum number of shares of the
Company's Common Stock which shall be made available for sale under the Plan,
the maximum number of shares each participant may purchase each Purchase Period
(pursuant to Section 7), the number of shares that may be added annually to the
shares reserved under the Plan (pursuant to Section 13(a)(i)), as well as the
price per share and the number of shares of Common Stock covered by each option
under the Plan which has not yet been exercised shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other change in the
number of shares of Common Stock effected without receipt of consideration by
the Company; provided, however, that conversion of any convertible securities of
the Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Administrator, whose
determination in that respect shall be final, binding and conclusive. Except as
expressly provided herein, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares of Common Stock subject to an option.

                  (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Offering Period then in progress
shall be shortened by setting a new Exercise Date (the "New Exercise Date"), and
shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Administrator. The
New Exercise Date shall be before the date of the Company's proposed dissolution
or liquidation. The Administrator shall notify each participant in writing, at
least ten (10) business days prior to the New Exercise Date, that the Exercise
Date for the participant's option has been changed to the New Exercise Date and
that the participant's option shall be exercised automatically on the New
Exercise Date, unless prior to such date the participant has withdrawn from the
Offering Period as provided in Section 10 hereof.

                  (c) Merger or Change of Control. In the event of a merger or
Change of Control, each outstanding option shall be assumed or an equivalent
option substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation. In the event that the successor corporation refuses to
assume or substitute for the option, any Purchase Periods then in progress shall
be shortened by setting a New Exercise Date and any Offering Periods then in
progress shall end on the New Exercise Date. The New Exercise Date shall be
before the date of the Company's proposed merger or Change of Control. The
Administrator shall notify each participant in writing, at least ten (10)
business days prior to the New Exercise Date, that the Exercise Date for the
participant's option has been changed to the New Exercise Date and that the
participant's option shall be exercised automatically on the New Exercise Date,
unless prior to such date the participant has withdrawn from the Offering Period
as provided in Section 10 hereof.

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         20. Amendment or Termination.

                  (a) The Administrator may at any time and for any reason
terminate or amend the Plan. Except as otherwise provided in the Plan, no such
termination can affect options previously granted, provided that an Offering
Period may be terminated by the Administrator on any Exercise Date if the
Administrator determines that the termination of the Offering Period or the Plan
is in the best interests of the Company and its stockholders. Except as provided
in Section 19 and this Section 20 hereof, no amendment may make any change in
any option theretofore granted which adversely affects the rights of any
participant. To the extent necessary to comply with Section 423 of the Code (or
any successor rule or provision or any other applicable law, regulation or stock
exchange rule), the Company shall obtain stockholder approval in such a manner
and to such a degree as required.

                  (b) Without stockholder consent and without regard to whether
any participant rights may be considered to have been "adversely affected," the
Administrator shall be entitled to change the Offering Periods, limit the
frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from the
participant's Compensation, and establish such other limitations or procedures
as the Administrator determines in its sole discretion advisable which are
consistent with the Plan.

                  (c) In the event the Administrator determines that the ongoing
operation of the Plan may result in unfavorable financial accounting
consequences, the Board may, in its discretion and, to the extent necessary or
desirable, modify or amend the Plan to reduce or eliminate such accounting
consequence including, but not limited to:

                               (i) increasing the Purchase Price for any
Offering Period including an Offering Period underway at the time of the change
in Purchase Price;

                               (ii) shortening any Offering Period so that
Offering Period ends on a new Exercise Date, including an Offering Period
underway at the time of the Board action; and

                               (iii) allocating shares.

Such modifications or amendments shall not require stockholder approval or the
consent of any Plan participants.

         21. Notices. All notices or other communications by a participant to
the Company under or in connection with the Plan shall be deemed to have been
duly given when received in the form and manner specified by the Company at the
location, or by the person, designated by the Company for the receipt thereof.

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         22. Conditions Upon Issuance of Shares. Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange upon which the shares may then be listed, and shall be
further subject to the approval of counsel for the Company with respect to such
compliance.

         As a condition to the exercise of an option, the Company may require
the person exercising such option to represent and warrant at the time of any
such exercise that the shares are being purchased only for investment and
without any present intention to sell or distribute such shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned applicable provisions of law.

         23. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board of Directors or its approval by the
stockholders of the Company. It shall continue in effect until terminated under
Section 20 hereof.

         24. Automatic Transfer to Low Price Offering Period. To the extent
permitted by any applicable laws, regulations, or stock exchange rules if the
Fair Market Value of the Common Stock on any Exercise Date in an Offering Period
is lower than the Fair Market Value of the Common Stock on the Offering Date of
such Offering Period, then all participants in such Offering Period shall be
automatically withdrawn from such Offering Period immediately after the exercise
of their option on such Exercise Date and automatically re-enrolled in the
immediately following Offering Period.

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                                    EXHIBIT A

                             SIMPLEX SOLUTIONS, INC.

                        2001 EMPLOYEE STOCK PURCHASE PLAN

                             SUBSCRIPTION AGREEMENT

_____ Original Application                            Offering Date:___________
_____ Change in Payroll Deduction Rate
_____ Change of Beneficiary(ies)

1.       ____________________ hereby elects to participate in the Simplex
         Solutions, Inc. 2001 Employee Stock Purchase Plan (the "Employee Stock
         Purchase Plan") and subscribes to purchase shares of the Company's
         Common Stock in accordance with this Subscription Agreement and the
         Employee Stock Purchase Plan.

2.       I hereby authorize payroll deductions from each paycheck in the amount
         of ____% of my Compensation on each payday (from 0 to 15%) during the
         Offering Period in accordance with the Employee Stock Purchase Plan.
         (Please note that no fractional percentages are permitted.)

3.       I understand that said payroll deductions shall be accumulated for the
         purchase of shares of Common Stock at the applicable Purchase Price
         determined in accordance with the Employee Stock Purchase Plan. I
         understand that if I do not withdraw from an Offering Period, any
         accumulated payroll deductions will be used to automatically exercise
         my option.

4.       I have received a copy of the complete Employee Stock Purchase Plan. I
         understand that my participation in the Employee Stock Purchase Plan is
         in all respects subject to the terms of the Plan. I understand that my
         ability to exercise the option under this Subscription Agreement is
         subject to stockholder approval of the Employee Stock Purchase Plan.

5.       Shares purchased for me under the Employee Stock Purchase Plan should
         be issued in the name(s) of (Eligible Employee or Eligible Employee and
         Spouse only).

6.       I understand that if I dispose of any shares received by me pursuant to
         the Plan within 2 years after the Offering Date (the first day of the
         Offering Period during which I purchased such shares) or one year after
         the Exercise Date, I will be treated for federal income tax purposes as
         having received ordinary income at the time of such disposition in an
         amount equal to the excess of the fair market value of the shares at
         the time such shares were purchased by me over the price which I paid
         for the shares. I hereby agree to notify the Company in writing within
         30 days after the date of any disposition of my shares and I will make
         adequate provision for Federal, state or other tax withholding
         obligations, if any, which arise upon the

<PAGE>   13
         disposition of the Common Stock. The Company may, but will not be
         obligated to, withhold from my compensation the amount necessary to
         meet any applicable withholding obligation including any withholding
         necessary to make available to the Company any tax deductions or
         benefits attributable to sale or early disposition of Common Stock by
         me. If I dispose of such shares at any time after the expiration of the
         2-year and 1-year holding periods, I understand that I will be treated
         for federal income tax purposes as having received income only at the
         time of such disposition, and that such income will be taxed as
         ordinary income only to the extent of an amount equal to the lesser of
         (1) the excess of the fair market value of the shares at the time of
         such disposition over the purchase price which I paid for the shares,
         or (2) 15% of the fair market value of the shares on the first day of
         the Offering Period. The remainder of the gain, if any, recognized on
         such disposition will be taxed as capital gain.

7.       I hereby agree to be bound by the terms of the Employee Stock Purchase
         Plan. The effectiveness of this Subscription Agreement is dependent
         upon my eligibility to participate in the Employee Stock Purchase Plan.

8.       In the event of my death, I hereby designate the following as my
         beneficiary(ies) to receive all payments and shares due me under the
         Employee Stock Purchase Plan:

         NAME:  (Please print)__________________________________________________
                               (First)             (Middle)            (Last)

         _________________________     _________________________________________
         Relationship

         _________________________     _________________________________________
         Percentage Benefit                          (Address)

         NAME: (please print)
         _______________________________________________________________________
                               (First)              (Middle)           (Last)

         _________________________     _________________________________________
         Relationship

         _________________________     _________________________________________
         Percentage of Benefit                       (Address)

                                       -2-
<PAGE>   14
         Employee's Social
         Security Number:                   ____________________________________

         Employee's Address:                ____________________________________

                                            ____________________________________

                                            ____________________________________

I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT
SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.

Dated:_________________________        _________________________________________
                                       Signature of Employee

                                       _________________________________________
                                       Spouse's Signature (If beneficiary other
                                       than spouse)

                                       -3-
<PAGE>   15
                                    EXHIBIT B

                             SIMPLEX SOLUTIONS, INC.

                        2001 EMPLOYEE STOCK PURCHASE PLAN

                              NOTICE OF WITHDRAWAL

         The undersigned participant in the Offering Period of the Simplex
Solutions, Inc. 2001 Employee Stock Purchase Plan which began on ____________,
______ (the "Offering Date") hereby notifies the Company that he or she hereby
withdraws from the Offering Period. He or she hereby directs the Company to pay
to the undersigned as promptly as practicable all the payroll deductions
credited to his or her account with respect to such Offering Period. The
undersigned understands and agrees that his or her option for such Offering
Period will be automatically terminated. The undersigned understands further
that no further payroll deductions will be made for the purchase of shares in
the current Offering Period and the undersigned shall be eligible to participate
in succeeding Offering Periods only by delivering to the Company a new
Subscription Agreement.

                                       Name and Address of Participant:

                                       ________________________________________

                                       ________________________________________

                                       ________________________________________

                                       Signature:

                                       ________________________________________

                                       Date:___________________________________<PAGE>   1

                                                                   EXHIBIT 10.19

                           SOFTWARE LICENSE AGREEMENT

THIS SOFTWARE LICENSE AGREEMENT (hereinafter "Agreement") is entered into by and
between Computational Applications and System Integration, Inc., an Illinois
corporation, with its principal place of business at 2004 S. Wright Street,
Urbana, IL 61801 (hereinafter "CA&SI"), and Simplex Solutions, Inc., a Delaware
corporation, with its principal place of business at 521 Almanor Avenue,
Sunnyvale, CA 94086 (hereinafter "Simplex").

                            ARTICLE I - DEFINITIONS

1.1  "Effective Date" means the date the Agreement is fully signed by both the
parties.

1.2  The "Maintenance-Period" of this Agreement is as follows: The initial
Maintenance-Period shall be for one (1) year starting from the Effective Date of
this Agreement. The Maintenance Period shall automatically extend by one (1)
year unless one of the parties chooses to not extend the Maintenance Period by
giving a written notice to the other party no less than ninety (90) days before
the end of the initial Maintenance Period. In any event, the Maintenance-Period
shall end no later than two (2) years after the Effective Date of this
Agreement.

1.3  "SOLVER" means CA&SI's software product known as vsdlss [*], which
includes, without limitation, the multiple load case feature, and all other
versions of CA&SI's software product vsdlss that are delivered by CA&SI to
Simplex during the Maintenance-Period. SOLVER is a sparse direct solver for
solving very sparse systems of simultaneous linear equations [*], but shall not
include RSOLVE or any other product or property of CA&SI. The current version of
SOLVER is vsdlss [*].

1.4  "Upgrade" means any subsequent released version of SOLVER.

1.5  "API" means the Applications Program Interface to SOLVER, as further
described in the Documentation.

1.6  "Bug" means any condition which (a) causes a hard error such as a bus error
or segmentation fault, and thereby causes SOLVER to crash or fail, or (b) causes
SOLVER to halt with an error condition other than a proper error indicating
Insufficient Memory of Insufficient Disk Space or Incorrect File Permissions or
Input Data Inconsistent, or (c) causes SOLVER to product a result that is not
within reasonable engineering tolerances of the solution to a properly inputted
system of very sparse simultaneous linear equations [*], provided in any case
that CA&SI can reproduce such phenomenon on its in-house platform(s) with
information supplied by Simplex.

1.7  "Documentation" means CA&SI's formal description of the API and of the
functionality, capabilities and limitations of SOLVER, as provided by CA&SI.

*Certain information on this page has been omitted and filed separately with
 the Commission. Confidential treatment has been requested with respect to the
 omitted portions.
<PAGE>   2
1.8  "Field of Use" means the field of integrated circuit electronic design
automation, which includes without limitation the use of resulting designs to
manufacture integrated circuit products.

1.9  "Source Code" means a collection of statements comprising a software
program, whether in written form or in magnetic or other machine-readable form,
and being intelligible in human-readable form, of SOLVER.

1.10 "Object Code" means machine readable machine language code of SOLVER
executable on a computer system, other than Source Code, including without
limitation linkable binary code as well as directly executable files.

1.11 "Term" means the time period beginning on the Effective Date of this
Agreement and ending upon termination of this Agreement in accordance with the
provisions herein.

                         ARTICLE II - SOFTWARE LICENSE

In consideration of the license fees to be paid by Simplex and its other
obligations under this Agreement, CA&SI hereby grants a non-exclusive license to
the Source Code of SOLVER to Simplex subject to the terms and restrictions given
below and in the rest of this Agreement:

2.1  Subject to the other provisions in this Agreement, CA&SI grants to Simplex
a perpetual, irrevocable, worldwide, right and license to modify, copy, and use
the Source Code and functionality thereof [*], all of which rights may be
exercised solely in connection with or as incorporated into a Simplex software
product. It is understood that, subject to any restrictions set forth in this
Agreement, the foregoing right and license extends both to the non-functional
copyrightable expression in the Source Code as well as the algorithms,
functionality and techniques in the Source Code.

2.2  Subject to the other provisions in this Agreement, CA&SI grants to Simplex
the perpetual, irrevocable, worldwide, right to incorporate the Source Code or
portions thereof into Simplex's internal software configuration management
system.

2.3  CA&SI grants to Simplex the perpetual, irrevocable, worldwide right and
license to distribute, market, import, export, copy, offer for sublicensing and
sublicense SOLVER or [*], however only in Object Code form and only when
incorporated into a Simplex software product and solely for use in the Field of
Use. [*] SOLVER [*]

2.4  The geographic scope of this license is worldwide.

*Certain information on this page has been omitted and filed separately with
 the Commission. Confidential treatment has been requested with respect to the
 omitted portions.

                                       2
<PAGE>   3

2.5 Simplex will not use or incorporate SOLVER in a way that would allow the
user of any Simplex software product to [*] SOLVER [*] allow such user access to
the API.

Notwithstanding the foregoing, the following restrictions shall apply:

2.6 Simplex shall not provide, disclose or sublicense the Source Code [*] Source
Code in source code form to any third party except to the extent expressly
permitted in Section 2.6, 2.7, 10.1, 10.2 or 12.1 hereof. Simplex may place the
Source Code, [*] in escrow, subject to the following conditions and limitations,
which shall be set forth in the documentation establishing such escrow, which
documentation shall be delivered promptly to CA&SI upon request:

     (a) The Source Code shall be escrowed only as an integral part of, and
     together with, source code for a licensed Simplex product, solely for the
     benefit of a licensee of such Simplex product;

     (b) Such escrow shall be administered by a reputable third party software
     escrow agent;

     (c) The terms of such escrow shall strictly limit the use of the Source
     Code by any releasee thereof to supporting and maintaining the licensed
     Simplex product which includes SOLVER or the respective modification or
     derivative thereof;

     (d) Prior to deposit of the Source Code in escrow, each potential releasee
     of the Source Code shall agree in writing, for the benefit of CA&SI, that
     such releasee (i) shall not provide the Source Code [*] to any third party
     and (ii) shall be subject to and bound by all of the conditions,
     restrictions and limitations on the use of such Source Code and proprietary
     information set forth in this Agreement in the same manner as applies to
     Simplex. The Object Code corresponding to any such Source Code [*] shall be
     subject to the same terms and conditions as apply to Simplex's object code
     for the licensed Simplex product, and shall be subject to and bound by all
     of the conditions, restrictions and limitations on the use of such Object
     Code and proprietary information set forth in this Agreement in the same
     manner as applies to Simplex;

     (e) The Source Code will be released only as an integral part of, and
     contemporaneous with, any release of source code for the Simplex product
     incorporating the Source Code; and

     (f) Triggering events for release of the escrow will be limited to the
     following events, except as agreed to in writing by CA&SI: (i) Simplex
     fails to conduct business

*Certain information on this page has been omitted and filed separately with
 the Commission. Confidential treatment has been requested with respect to the
 omitted portions.

                                       3
<PAGE>   4

      in the ordinary course and fails to support and maintain its products for
      a period of thirty (30) days or more after demand therefor by its
      licensee, (ii) the bankruptcy, liquidation or dissolution of Simplex,
      Simplex making an assignment for the benefit of creditors, or upon the
      appointment of a receiver or trustee of Simplex pursuant to any state or
      federal bankruptcy law or similar law relating to creditor's rights
      generally.

2.7   Access to the Source Code will be provided only to Simplex personnel, at
the facilities of Simplex or other secure facilities where Simplex permits
access to source code for its own products, including without limitation
off-size storage and backups, who (a) have a need for such access in order to
utilize the Source Code consistent with this Agreement, and (b) have been
apprised of the terms of this Agreement regarding restrictions on use and
disclosure of the Source Code.

2.8   CA&SI retains sole title and all intellectual property rights to SOLVER,
its Source Code and Object Code, and all algorithms, data structures and
implementation techniques in the Source Code. [*] the Source Code [*] Simplex
shall have the right to copyright, patent or otherwise protect as proprietary
[*] from SOLVER [*] such copyright, patent or other intellectual property right
[*] SOLVER [*].

2.9   Periodically (at least once every four months) solely during the
Maintenance Period Simplex shall run SOLVER benchmarks on representative
problems and on representative platforms and provide the (jobname).PCS
statistics files back to CA&SI. CA&SI shall have the right to use these files
and the data contained therein for any purpose suitable for its business.

2.10  Nothing herein shall constitute or be deemed a grant of rights or
limitation on, nor shall this Agreement relate to, any other software, product,
source code, or object code currently licensed or sublicensed from CA&SI by
Simplex, including specifically, but without limitation of the generality of
the foregoing, any prior arrangement concerning RSOLVE or any other property
described in that certain Software License Agreement between the parties dated
May 1, 1997.

              ARTICLE III - WARRANTY AND LIMITATIONS ON LIABILITY

3.1   Simplex acknowledges SOLVER is provided AS IS and without warranties of
any kind, except as set out in paragraph 4.1. Specifically, Simplex
acknowledges that SOLVER IS PROVIDED WITHOUT ANY EXPRESS OR IMPLIED WARRANTY,
INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR

*Certain information on this page has been omitted and filed separately with
 the Commission. Confidential treatment has been requested with respect to the
 omitted portions.

                                       4
<PAGE>   5

PURPOSE. CA&SI has no obligations with regard to any error or defect claimed
with regard to SOLVER except as provided for in paragraph 7.3.

3.2  Simplex shall assure that, with respect to each customer with whom Simplex
enters an agreement by which Simplex sublicenses SOLVER, CA&SI shall be included
(either by name or as a Licensor of Simplex) under such agreement to all
limitations from liability for errors or otherwise with respect to its SOLVER as
is provided to Simplex with respect to its software. In no event shall either
party be liable for any indirect, special, incidental or consequential damages
of any nature, including lost profits, whether or not such party shall have been
advised of the possibility of the same, except to the extent arising out of
disclosure of the Source Code by Simplex in material breach of this Agreement
which results in loss of CA&SI's trade secrets or proprietary rights to the
Source Code and is not, or cannot be, cured within a reasonable period of time.
CA&SI shall have no liability to any third party to which Simplex licenses any
software product that may contain SOLVER or any version thereof. Simplex shall
indemnify, save and hold harmless CA&SI from and against any and all loss, cost,
or claim arising from or in connection with, any use or sublicensure of SOLVER
by Simplex or its permitted assignees, licensees or end-users, except to the
extent arising out of or related to breach of any express warranty of CA&SI
under ARTICLE IV or CA&SI's knowing or willful misconduct. Simplex's obligations
under this paragraph 3.2 are subject to the following conditions: (i) CA&SI
shall permit Simplex to control the litigation and settlement; (ii) CA&SI agrees
to notify Simplex upon knowledge of any claim, suit, action, or proceeding for
which it may entitled for indemnification under this agreement; (iii) CA&SI
agrees to provide reasonable assistance to Simplex at Simplex's expense, in
defense of the same; and (iv) CA&SI will not enter into any settlement agreement
or otherwise settle any such claim without Simplex's prior consent or request.

3.3  In no event shall CA&SI have any liability with respect to any error or
malfunction which results directly or indirectly from: a) any change of any
nature made by Simplex or any third party; b) failure by Simplex to follow any
of CA&SI's written instructions with regard to the use of SOLVER; or c) the
attachment, integration or incorporation of any other software program in or
with SOLVER or the incorporation of SOLVER in or with any other software
program. Neither party shall have any liability resulting directly or indirectly
from any cause beyond such party's reasonable control, including without
limitation, any weather or power related problems, any acts or omissions by a
communications carrier or any other event of force majeure.

                 ARTICLE IV -- INTELLECTUAL PROPERTY INDEMNITY

4.1  CA&SI represents and warrants that it owns SOLVER and has full authority to
grant the rights stated herein to Simplex without the consent or authority of
any third party, and that SOLVER and the license granted hereby do not infringe
any copyright, trade secret, patent, contract or other right of any third party.
CA&SI will defend or settle any suit brought by a third party against Simplex
alleging SOLVER violates any such right. CA&SI shall not enter

                                       5
<PAGE>   6

into any settlement without the written consent of Simplex, which consent shall
not be unreasonably withheld or delayed. CA&SI's indemnification obligation
under this ARTICLE IV shall not apply to any settlement entered into by Simplex
without the written consent of CA&SI, which consent shall not be unreasonably
withheld or delayed. At its option CA&SI may provide Simplex with a version of
SOLVER which, to the extent technically practicable, contains equivalent
functionality and performance and does not infringe or result in such a
violation. CA&SI shall indemnify and hold Simplex harmless for all loss, cost,
reasonable expense (including attorney's fees), damage or judgment related to or
arising out of such a claim.

                            ARTICLE V - LICENSE FEES

5.1  Simplex will pay CA&SI a license fee of [*] within [*] of the Effective
Date of this Agreement. Upon payment of such fee and the maintenance fee for the
first year as specified in paragraph 7.2, the rights and licenses granted to
Simplex under ARTICLE II shall be [*].

                             ARTICLE VI - PUBLICITY

6.1  Simplex agrees that the CA&SI copyright notice and disclaimer provided as
part of the Source Code will be printed to and displayed in the program output
whenever SOLVER is invoked. Such copyright notice and disclaimer may be
reasonably modified or amended from time to time by CA&SI as necessary to update
factual and disclaimer information and maintain the legal correctness of such
copyright notice and disclaimer. Simplex also agrees to give due attribution to
CA&SI as the provider of SOLVER in any online or printed documentation of any
product that incorporates or uses SOLVER or any portion thereof. CA&SI grants to
Simplex a non-exclusive, royalty free, worldwide right and license to use CA&SI
trademarks in connection with the marketing, promotion, sublicensing and
distribution of Simplex products that include SOLVER or any portions thereof.
Simplex agrees to use the symbol "TM" with presentations of CA&SI trademarks
including CA&SI and [*].

                ARTICLE VII - TECHNICAL SUPPORT AND MAINTENANCE

7.1  Any technical support or maintenance for SOLVER provided by CA&SI will be
provided directly to Simplex and not to Simplex customers.

7.2  Simplex will pay CA&SI an initial maintenance fee of [*] within [*] of the
Effective Date of this agreement. If the Maintenance-Period is extended for a
year as per paragraph 1.2 then Simplex will pay CA&SI an additional maintenance
extension fee of [*] within [*] of the anniversary of the Effective Date of this
Agreement.

*Certain information on this page has been omitted and filed separately with
 the Commission. Confidential treatment has been requested with respect to the
 omitted portions.

                                       6
<PAGE>   7

7.3 Subject to all of the terms, conditions and limitations set forth herein,
and in consideration of the maintenance fees paid to CA&SI hereunder, CA&SI
will provide Upgrades and Bug fixes for SOLVER to Simplex during the
Maintenance-Period. The procedure for fixing bugs will be as follows: Simplex
will provide sufficient information to CA&SI to reproduce a Bug on an in-house
platform, and it is expected that the Bug will probably be fixed by the next
release of SOLVER. No Upgrades or Bug fixes will be provided after the
Maintenance-Period.

7.4 CA&SI is not obligated to provide any Upgrades or Bug Fixes to Simplex
unless CA&SI receives timely payment of maintenance fees as per paragraph 7.2
or accepts late payment.

7.5 Any and all Upgrades delivered or otherwise made available to Simplex
pursuant to this Agreement shall be conditioned upon and subject to all of the
terms, restrictions, conditions and limitations applicable to SOLVER, as set
forth in the remainder of this Agreement.

7.6 CA&SI's support obligations hereunder are strictly limited to Upgrades and
Bug fixes for SOLVER. During the Maintenance-Period CA&SI will provide other
technical services to Simplex on a consulting basis subject to the following
terms and conditions: (i) CA&SI must have personnel available for such services,
in the sole determination of CA&SI; (ii) Simplex shall pay CA&SI an additional
consulting fee of [*] per day or any portion thereof and such fee shall not
include any travel expenses; and (iii) Simplex shall separately reimburse CA&SI
for all reasonable travel-expenses incurred.

7.7 Termination of this Agreement in accordance with the provisions of this
agreement will automatically terminate all of CA&SI's maintenance and support
obligations hereunder.

                           ARTICLE VIII - TERMINATION

8.1 In addition to any other remedies available, each party shall have the
right to terminate this Agreement as a result of a material breach by the other
party of any of the provisions of this Agreement, which breach remains uncured
more than thirty (30) days after written notice which specifically sets forth
the nature and circumstances of the breach and references the applicable
provisions of this agreement. Each party shall also be entitled to equitable
remedies as required to enforce its rights under this Agreement. In addition,
Simplex shall have the right to terminate this Agreement for its convenience
upon ninety (90) days advance written notice to CA&SI.

8.2 In the event of termination of this Agreement, Simplex may retain a copy of
the Source Code [*]. Documentation and other information it has received from
CA&SI which may be used solely for the purpose of providing continuing support
for sublicenses of SOLVER [*] granted prior to the termination date. Simplex
shall not make or keep any other copy of the Source Code [*] and any related
information, and agrees not to disclose or use the same for any other purpose,
directly or indirectly. Simplex reserves the

*Certain information on this page has been omitted and filed separately with
 the Commission. Confidential treatment has been requested with respect to the
 omitted portions.

                                       7
<PAGE>   8

right to segregate and use without restriction independent source code meeting
the requirements of paragraph 11.1. The parties agree such termination will not
affect any sublicense of the SOLVER [*] that Simplex has granted prior to the
termination date, but Simplex will have no right to grant or renew any further
sublicenses. Notwithstanding anything to the contrary in this Agreement,
termination of this Agreement will terminate all rights and licenses granted to
Simplex under this Agreement except those specified in paragraph 8.2, 14.8 and
the right to place Source Code under escrow granted in paragraph 2.6 for the
benefit of existing sublicensees prior to termination.

8.3  If this Agreement is terminated in accordance with the provisions of this
Agreement after the Acceptance Period in paragraph 9.1 then CA&SI shall have
the right to receive and retain all license fees which have become due and
payable under ARTICLE V and all maintenance fees which have become due and
payable under paragraph 7.2 prior to termination.

                         ARTICLE IX - FORM AND DELIVERY

9.1  The Source Code will be provided as C language source code. A snap shot of
the Source Code will be delivered by CA&SI to Simplex together with the
Documentation within one (1) week of the Effective Date of this Agreement. This
snap shot will contain the multiple load case feature. There will be an
"Acceptance Period" of three (3) weeks starting from the date the Source Code
is delivered to Simplex. During the Acceptance Period Simplex has the option of
not accepting the Source Code and terminating this Agreement by giving a
written notice to CA&SI. If Simplex terminates this Agreement during the
Acceptance Period in this manner then Simplex will be entitled to a full refund
of any of the license fees paid to CA&SI under ARTICLE V and any of the
maintenance fees paid to CA&SI under paragraph 7.2. If no notice of termination
is received by CA&SI during the Acceptance Period then the Source Code will be
deemed to have been accepted by Simplex. If Simplex terminates this Agreement
before the end of the Acceptance Period then Simplex will destroy all copies of
the Source Code. Documentation and other information provided by CA&SI and
Simplex will have no right to grant any sublicenses of SOLVER.

                 ARTICLE X - CONFIDENTIALITY AND NON-DISCLOSURE

10.1 Simplex agrees that the Source Code and the Documentation for SOLVER are
and will be treated by Simplex as confidential and trade secret property owned
by CA&SI, and title and all rights of ownership shall remain with CA&SI. Any
information Simplex may obtain, directly or indirectly, with regard to the
Source Code or Documentation or any other information, that is clearly marked
as confidential or proprietary information of CA&SI, shall be kept confidential
by Simplex and shall not be disclosed, directly or indirectly, to any third
party. Simplex agrees to immediately report to CA&SI any unauthorized use or
disclosure of

*Certain information on this page has been omitted and filed separately with
 the Commission. Confidential treatment has been requested with respect to the
 omitted portions.

                                       8
<PAGE>   9
CA&SI confidential or proprietary information, whether or not such use or
disclosure is the fault of Simplex.

10.2 Notwithstanding anything to the contrary in this Agreement, information in
the following categories shall not be deemed proprietary to CA&SI and the
confidentiality restrictions in this Agreement shall not apply to: (i)
information that is otherwise proprietary information hereunder that is in or
comes into the public domain through no direct or indirect act or omission of
Simplex; (ii) information that is independently developed by or for Simplex, or
is developed and provided to Simplex by one or more third parties, without use
of proprietary information disclosed to Simplex and without any breach of this
Agreement; (iii) information which is in the possession of Simplex at the time
of disclosure by CA&SI, or (iv) information that is specifically approved by
CA&SI for release to third parties not bound by written confidentiality
provisions by written authorization by CA&SI. Notwithstanding anything to the
contrary in this Agreement, Simplex may disclose confidential or proprietary
information of CA&SI to the extent required by law or by order of any court or
governmental agency, provided that, to the extent it may legally do so, Simplex
gives reasonable advance notice to CA&SI and uses its reasonable efforts to
secure confidential treatment of such information prior to its disclosure
(whether through protective orders or otherwise).

                         ARTICLE XI - SIMILAR PRODUCTS

11.1 Nothing in this Agreement shall limit Simplex's right to (i) use
information which is generally available to third parties without violation of
any proprietary or intellectual property rights of CA&SI and without any breach
of this Agreement; or (ii) develop, acquire, or market other software or
products having functionality similar to that of SOLVER, provided Simplex can
show that such software has been developed independently without use or aid,
directly or indirectly, of the SOLVER Source Code, Documentation, algorithms
and data structures in the Source Code, or any other confidential or
proprietary information of CA&SI obtained by Simplex.

                            ARTICLE XII - ASSIGNMENT

12.1 This Agreement shall be binding upon and enure to the benefit of the
parties hereto, their successors and any permitted assigns. Simplex shall not
have the right to assign or otherwise transfer any of its rights or obligations
under this Agreement. Notwithstanding the foregoing, a merger or acquisition of
substantially all of the business to which this Agreement relates (whether by
sale of stock, sale of assets or otherwise) of either of the parties shall not
violate this prohibition against assignment, provided the merger or acquisition
agreement and appropriate state law provide that the acquiror or the successor
by merger, as appropriate, shall be fully liable for performance of all of the
terms and provisions of this Agreement and the original party shall not be
released from such performance to the extent the original party survives as a
separate legal entity. In the event of a transfer of Simplex's licenses in
connection with such a merger or acquisition, it is understood that the
licenses granted by

                                       9
<PAGE>   10

CA&SI to Simplex under this Agreement will be transferred to the respective
acquiror or successor and will not be retained by Simplex. It is understood
that at any given time there will be only one licensee who will hold the rights
and licenses granted by CA&SI under this Agreement and that licensee will be
subject to all the obligations and restrictions under this Agreement.

                       ARTICLE XIII - EXPORT RESTRICTIONS

13.1 Simplex acknowledges having reviewed and understanding the provisions of
the Export Administration Regulations as currently in effect in the United
States and agrees it will not export or re-export, directly or indirectly, any
software product that uses or incorporates any version of SOLVER to any country
to which such export, or re-export, is prohibited under the Regulations.
Simplex further agrees that it will obtain any and all export licenses
necessary to allow the export or re-export of any software products using or
incorporating the SOLVER in the event the destination country to which such
export is to be made requires any such license, Simplex agrees to indemnify and
hold CA&SI harmless from and against any and all losses or costs incurred as a
result of Simplex's failure to comply with the provisions of this article.

                          ARTICLE XIV - MISCELLANEOUS

14.1 This Agreement constitutes the entire understanding between the parties
and supersedes any discussions, negotiations, understandings or prior
agreements (if any) with respect to the subject matter hereof. There are no
representations, promises, warranties or understandings relied upon by the
parties which are not contained herein. This Agreement may be modified only by
a writing signed by both parties.

14.2 The failure by either party to insist upon strict enforcement of any terms
and conditions of this Agreement shall not constitute a waiver of such right
with regard to the same or any subsequent breach at a later date. If any
provision of this Agreement is held to be unenforceable, by a court of
competent jurisdiction or arbitrator pursuant to Section 14.6, such decision
shall not affect the validity or enforceability of the remaining provisions,
which shall be modified only to the extent required to modify or strike the
unenforceable provisions.

14.3 In the event of a default by either party under the terms of this
Agreement, the nondefaulting party shall be entitled to recover all costs,
including reasonable attorneys' fees, incurred in enforcing its rights under
this Agreement.

14.4 Any notice required or permitted hereunder shall be personally delivered
or mailed by certified mail, return receipt requested, and shall be effective
upon the earlier of receipt or three (3) days after being so mailed. The
addresses of the parties for notice are the addresses

                                       10
<PAGE>   11
set forth on page one, unless either party gives written notice of a new address
for this purpose.

14.5 The captions used in this Agreement are for convenience only and shall not
control or affect the meaning or construction of the provisions of this
Agreement.

14.6 Any controversy or claim arising out of this Agreement or its breach, shall
be settled by binding arbitration in Champaign, Illinois. A single arbitrator
shall be chosen by mutual agreement of the parties within fifteen (15) days
after the date on which the parties determine in good faith that they will be
unable to agree as to the settlement of the controversy or claim. In the event
the parties cannot mutually agree upon an arbitrator, each party shall select an
arbitrator and the two arbitrators so selected shall select a third arbitrator.
The decision of the arbitrator, or a majority of the panel of three arbitrators,
as appropriate, shall be made within thirty (30) days of the selection of the
arbitrator(s), and shall be final and binding upon the parties. Judgment on the
arbitration decision may be entered in the appropriate court as provided in this
Agreement. The arbitration shall be governed by and conducted in accordance with
the rules of the American Arbitration Association for commercial arbitration.
The cost of arbitration shall be borne equally by the parties, unless the
arbitration decision shall apportion the costs otherwise.

14.7 None of the provisions of this Agreement shall be for the benefit of or
enforceable by any third party, including specifically, but without limitation
of the generality of the foregoing, any sub-licensee of Simplex.

14.8 Notwithstanding any provision herein to the contrary, the duties,
undertakings, indemnities and other obligations of Simplex set forth in Sections
2.3, 2.5, 2.6, 2.7, and the duties, rights, undertakings, indemnities and other
obligations of both parties set forth in 2.8, 2.9 (last sentence only), 3.2,
3.3, 4.1, 6.1, 8.2, 9.1, 10.1, 10.2, 11.1, 12.1, 13.1, and ARTICLE XIV hereof,
shall survive the execution, delivery, performance and termination of this
Agreement in perpetuity.

14.9 This Agreement shall be governed by and construed in accordance with the
laws of the State of Illinois, without regard to its choice of law provisions.
The parties agree any litigation involving this Agreement shall be brought in
either state or federal court located in Champaign County, Illinois, unless
CA&SI shall otherwise agree in writing in advance.

14.10 Simplex shall be responsible for all taxes of any nature arising as a
result of distribution of any products that use or incorporate any version of
SOLVER, with the exception of taxes on CA&SI based upon CA&SI's taxable income
from payments hereunder.

14.11 Any and all restrictions on the licensure, sub-licensure, disclosure,
modification, distribution, marketing, and other use of SOLVER, the Source Code,
the Object Code, and the Documentation by Simplex shall, except as provided in a
writing signed by a duly authorized

                                       11

<PAGE>   12

representative of CA&SI with specific reference to this provision, apply to any
upgrade or subsequent version of SOLVER which may be licensed or delivered to
Simplex under this agreement.

IN WITNESS WHEREOF, this Agreement has become effective on the date of the
latest signature of the parties as set forth below.

Computational Applications and                Simplex Solutions, Inc., a
Systems Integration, Inc., an Illinois        Delaware Corporation
corporation

By: P.M. VAIDYA                               By: [SIGNATURE ILLEGIBLE]
   --------------------------------              -------------------------------

Title: President                              Title: President & CEO
      -----------------------------                 ----------------------------

Name: Pravin M. Vaidya                        Name: [SIGNATURE ILLEGIBLE]
     ------------------------------                -----------------------------

Date: July 14, 1998                           Date: July 15, 1998
     ------------------------------                -----------------------------

                                       12

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