Document:

exv10w28

 

Exhibit 10.28

INDEMNIFICATION AGREEMENT

     This
INDEMNIFICATION AGREEMENT (the “Agreement”) is made
and entered into as of the 23rd day of December, 2004, by and between Swift Foods Company, a Delaware corporation
(including any successors thereto, the “Company”), and Kate Lavelle (“Indemnitee”).

RECITALS:

     1. Competent and experienced persons are reluctant to serve or to continue to serve
corporations as directors, officers, or in other capacities unless they are provided with adequate
protection through insurance or indemnification (or both) against claims and actions against them
arising out of their service to and activities on behalf of those corporations.

     2. The current uncertainties relating to the availability of adequate insurance for directors
and officers have increased the difficulty for corporations to attract and retain competent and
experienced persons.

     3. The Board of Directors of the Company (the “Board”) has determined that the
continuation of present trends in litigation will make it more difficult to attract and retain
competent and experienced persons, that this situation is detrimental to the best interests of the
Company’s stockholders, and that the Company should act to assure its directors and officers that
there will be increased certainty of adequate protection in the future.

     4. It is reasonable, prudent, and necessary for the Company to obligate itself contractually
to indemnify its directors and officers to the fullest extent permitted by applicable law in order
to induce them to serve or continue to serve the Company.

     5. Indemnitee is willing to serve and continue to serve the Company on the condition that he
be indemnified to the fullest extent permitted by law.

     6. Concurrently with the execution of this Agreement, Indemnitee is agreeing to serve or to
continue to serve as a director or officer of the Company.

AGREEMENTS:

     NOW, THEREFORE, in consideration of the foregoing premises, Indemnitee’s agreement to serve or
continue to serve as a director or officer of the Company, and the covenants contained in this
Agreement, the Company and Indemnitee hereby covenant and agree as follows:

     1. Certain Definitions.

          For purposes of this Agreement:

          (a) Affiliate: shall mean any Person that directly, or indirectly, through one or
more intermediaries, controls, is controlled by, or is under common control with the Person
specified.

 

 

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

               (i) The acquisition after the date of this Agreement by any individual, entity, or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the
“Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 50% or more of either (x) the then outstanding shares
of common stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined
voting power of the then outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Company Voting Securities”); provided, however,
that for purposes of this paragraph (i), the following acquisitions shall not constitute a Change
of Control: (1) any acquisition directly from the Company or any Subsidiary thereof, (2) any
acquisition by the Company or any Subsidiary thereof, (3) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Company or any Subsidiary of the Company or
(4) any acquisition by any one or more members of the HMC Group;

               (ii) Individuals who, as of the date of this Agreement, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, that any individual becoming a director subsequent to the date of this Agreement
(x) who is a member of the HMC Group or (y) whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least a majority of the directors then
comprising the Incumbent Board, shall in either case be considered as though such individual were a
member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest with respect to
the election or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or

               (iii) Consummation of a sale, lease, exchange, or other disposition of all or substantially
all of the assets of the Company (including the capital stock or assets of its subsidiaries) to any
Person, other than one or more members of the HMC Group.

          (c) Claim: shall mean any threatened, pending, or completed action, suit, or
proceeding (including, without limitation, securities laws actions, suits, and proceedings and also
any cross claim or counterclaim in any action, suit, or proceeding), whether civil, criminal,
arbitral, administrative, or investigative in nature, or any inquiry or investigation (including
discovery), whether conducted by the Company or any other Person, that Indemnitee in good faith
believes might lead to the institution of any action, suit, or proceeding.

          (d) Expenses: shall mean all costs, expenses (including attorneys’ and expert
witnesses’ fees), and obligations paid or incurred in connection with investigating, defending
(including affirmative defenses and counterclaims), being a witness in, or participating in
(including on appeal), or preparing to defend, be a witness in, or participate in, any Claim
relating to any Indemnifiable Event.

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          (e) HMC Group: shall mean Hicks, Muse, Tate & Furst Incorporated, its Affiliates and
their respective employees, officers, and directors (and members of their respective families and
trusts for the primary benefit of such family members).

          (f) Indemnifiable Event: shall mean any actual or alleged act, omission, statement,
misstatement, event, or occurrence related to the fact that Indemnitee is or was a director,
officer, agent, or fiduciary of the Company, or is or was serving at the request of the Company as
a director, officer, trustee, agent, or fiduciary of another corporation, partnership, joint
venture, employee benefit plan, trust, or other enterprise, or by reason of any actual or alleged
thing done or not done by Indemnitee in any such capacity. For purposes of this Agreement, the
Company agrees that Indemnitee’s service on behalf of or with respect to any Subsidiary or employee
benefits plan of the Company or any Subsidiary of the Company shall be deemed to be at the request
of the Company.

          (g) Indemnifiable Liabilities: shall mean all Expenses and all other liabilities,
damages (including, without limitation, punitive, exemplary, and the multiplied portion of any
damages), judgments, payments, fines, penalties, amounts paid in settlement, and awards paid or
incurred that arise out of, or in any way relate to, any Indemnifiable Event.

          (h) Potential Change of Control: shall be deemed to have occurred if (i) the Company
enters into an agreement, the consummation of which would result in the occurrence of a Change of
Control; (ii) any Person (including the Company) publicly announces an intention to take or to
consider taking actions that, if consummated, would constitute a Change of Control; or (iii) the
Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change of
Control has occurred.

          (i) Reviewing Party: shall mean (i) a member or members of the Board who are not
parties to the particular Claim for which Indemnitee is seeking indemnification or (ii) if a Change
of Control has occurred and Indemnitee so requests, or if the members of the Board so elect, or if
all of the members of the Board are parties to such Claim, Special Counsel.

          (j) Special Counsel: shall mean special, independent legal counsel selected by
Indemnitee and approved by the Company (which approval shall not be unreasonably withheld), and who
has not otherwise performed material services for the Company or for Indemnitee within the last
three years (other than as Special Counsel under this Agreement or similar agreements).

          (k) Subsidiary: shall mean, with respect to any Person, any corporation or other
entity of which a majority of the voting power of the voting equity securities or equity interest
is owned, directly or indirectly, by that Person.

     2. Indemnification and Expense Advancement.

          (a) The Company shall indemnify Indemnitee and hold Indemnitee harmless to the fullest extent
permitted by law, as soon as practicable but in any event no later than 30 days after written
demand is presented to the Company, from and against any and all Indemnifiable Liabilities.
Notwithstanding the foregoing, the obligations of the Company under Section 2(a) shall be subject
to the condition that the Reviewing Party shall not have determined

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(in a written opinion, in any case in which Special Counsel is involved) that Indemnitee is
not permitted to be indemnified under applicable law. Any determination under this Section 2(a)
shall be made promptly by the Reviewing Party.

          (b) If so requested by Indemnitee, the Company shall advance to Indemnitee all reasonable
Expenses incurred by Indemnitee to the fullest extent permitted by law (or, if applicable,
reimburse Indemnitee for any and all reasonable Expenses incurred by Indemnitee and previously paid
by Indemnitee) within ten business days after such request (an “Expense Advance”). The
Company shall be obligated from time to time at the request of Indemnitee to make or pay an Expense
Advance in advance of the final disposition or conclusion of any Claim. In connection with any
request for an Expense Advance, if requested by the Company, Indemnitee or Indemnitee’s counsel
shall submit an affidavit stating that the Expenses to which the Expense Advances relate are
reasonable. Any dispute as to the reasonableness of any Expense shall not delay an Expense Advance
by the Company. If, when, and to the extent that the Reviewing Party determines that (i) Indemnitee
would not be permitted to be indemnified with respect to a Claim under applicable law or (ii) the
amount of the Expense Advance was not reasonable, the Company shall be entitled to be reimbursed by
Indemnitee and Indemnitee hereby agrees to reimburse the Company without interest (which agreement
shall be an unsecured obligation of Indemnitee) for (x) all related Expense Advances theretofore
made or paid by the Company in the event that it is determined that indemnification would not be
permitted or (y) the excessive portion of any Expense Advances in the event that it is determined
that such Expenses Advances were unreasonable, in either case, if and to the extent such
reimbursement is required by applicable law; provided, however, that if Indemnitee has commenced
legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee
could be indemnified under applicable law, or that the Expense Advances were reasonable, any
determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified
under applicable law or that the Expense Advances were unreasonable shall not be binding, and the
Company shall be obligated to continue to make Expense Advances, until a final judicial
determination is made with respect thereto (as to which all rights of appeal therefrom have been
exhausted or lapsed), which determination shall be conclusive and binding. If there has been a
Change of Control, the Reviewing Party shall be Special Counsel, if Indemnitee so requests. If
there has been no determination by the Reviewing Party or if the Reviewing Party determines that
Indemnitee substantively is not permitted to be indemnified in whole or part under applicable law
or that any Expense Advances were unreasonable, Indemnitee shall have the right to commence
litigation in any court in the states of Texas, New York or Delaware having subject matter
jurisdiction thereof and in which venue is proper seeking an initial determination by the court or
challenging any such determination by the Reviewing Party or any aspect thereof, and the Company
hereby consents to service of process and to appear in any such proceeding. Any determination by
the Reviewing Party otherwise shall be conclusive and binding on the Company and Indemnitee.

          (c) Nothing in this Agreement, however, shall require the Company to indemnify Indemnitee with
respect to any Claim initiated by Indemnitee, other than a Claim solely seeking enforcement of the
Company’s indemnification obligations to Indemnitee or a Claim authorized by the Board.

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     3. Change of Control. The Company agrees that, if there is a Potential Change in Control
or a Change of Control and if Indemnitee requests in writing that Special Counsel be the Reviewing
Party, then Special Counsel shall be the Reviewing Party. In such a case, the Company agrees not
to request or seek reimbursement from Indemnitee of any indemnification payment or Expense Advances
unless Special Counsel has rendered its written opinion to the Company and Indemnitee that the
Company was not or is not permitted under applicable law to indemnify Indemnitee or that such
Expense Advances were unreasonable. However, if Indemnitee has commenced legal proceedings in a
court of competent jurisdiction to secure a determination that Indemnitee could be indemnified
under applicable law or that the Expense Advances were reasonable, any determination made by
Special Counsel that Indemnitee would not be permitted to be indemnified under applicable law or
that the Expense Advances were unreasonable shall not be binding, and the Company shall be
obligated to continue to make Expense Advances, until a final judicial determination is made with
respect thereto (as to which all rights of appeal therefore have been exhausted or lapsed), which
determination shall be conclusive and binding. The Company agrees to pay the reasonable fees of
Special Counsel and to indemnify Special Counsel against any and all expenses (including attorneys’
fees), claims, liabilities, and damages arising out of or relating to this Agreement or Special
Counsel’s engagement pursuant hereto.

     4. Indemnification for Additional Expenses. The Company shall indemnify Indemnitee against
any and all costs and expenses (including attorneys’ and expert witnesses’ fees) and, if requested
by Indemnitee, shall (within two business days of that request) advance those costs and expenses to
Indemnitee, that are incurred by Indemnitee if Indemnitee, whether by formal proceedings or through
demand and negotiation without formal proceedings: (a) seeks to enforce Indemnitee’s rights under
this Agreement, (b) seeks to enforce Indemnitee’s rights to expense advancement or indemnification
under any other agreement or provision of the Company’s Certificate of Incorporation (the
“Certificate of Incorporation”) or Bylaws (the “Bylaws”) now or hereafter in effect
relating to Claims for Indemnifiable Events, or (c) seeks recovery under any directors’ and
officers’ liability insurance policies maintained by the Company, in each case regardless of
whether Indemnitee ultimately prevails; provided that a court of competent jurisdiction has not
found Indemnitee’s claim for indemnification or expense advancements under the foregoing clauses
(a), (b) or (c) to be frivolous, presented for an improper purpose, without evidentiary support, or
otherwise sanctionable under Federal Rule of Civil Procedure No. 11 or an analogous rule or law,
and provided further, that if a court makes such a finding, Indemnitee shall reimburse the Company
for all amounts previously advanced to Indemnitee pursuant to this Section 4. Subject to the
provisos contained in the preceding sentence, to the fullest extent permitted by law, the Company
waives any and all rights that it may have to recover its costs and expenses from Indemnitee.

     5. Partial Indemnity. If Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some, but not all, of Indemnitee’s Indemnifiable Liabilities,
the Company shall indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

     6. Contribution.

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          (a) Contribution Payment. To the extent the indemnification provided for under any
provision of this Agreement is determined (in the manner hereinabove provided) not to be permitted
under applicable law, the Company, in lieu of indemnifying Indemnitee, shall, to the extent
permitted by law, contribute to the amount of any and all Indemnifiable Liabilities incurred or
paid by Indemnitee for which such indemnification is not permitted. The amount the Company
contributes shall be in such proportion as is appropriate to reflect the relative fault of
Indemnitee, on the one hand, and of the Company and any and all other parties (including officers
and directors of the Company other than Indemnitee) who may be at fault (collectively, including
the Company, the “Third Parties”), on the other hand.

          (b) Relative Fault. The relative fault of the Third Parties and the Indemnitee shall
be determined (i) by reference to the relative fault of Indemnitee as determined by the court or
other governmental agency or (ii) to the extent such court or other governmental agency does not
apportion relative fault, by the Reviewing Party after giving effect to, among other things, the
relative intent, knowledge, access to information, and opportunity to prevent or correct the
relevant events, of each party, and other relevant equitable considerations. The Company and
Indemnitee agree that it would not be just and equitable if contribution were determined by pro
rata allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in this Section 6(b).

     7. Burden of Proof. In connection with any determination by the Reviewing Party or
otherwise as to whether Indemnitee is entitled to be indemnified under any provision of this
Agreement or to receive contribution pursuant to Section 6 of this Agreement, to the extent
permitted by law the burden of proof shall be on the Company to establish that Indemnitee is not so
entitled.

     8. No Presumption. For purposes of this Agreement, the termination of any Claim by
judgment, order, settlement (whether with or without court approval), or conviction, or upon a plea
of nolo contendere, or its equivalent, or an entry of an order of probation prior to judgment shall
not create a presumption (other than any presumption arising as a matter of law that the parties
may not contractually agree to disregard) that Indemnitee did not meet any particular standard of
conduct or have any particular belief or that a court has determined that indemnification is not
permitted by applicable law.

     9. Non-exclusivity. The rights of Indemnitee hereunder shall be in addition to any other
rights Indemnitee may have under the Bylaws or Certificate of Incorporation or the Delaware General
Corporation Law or otherwise. To the extent that a change in the Delaware General Corporation Law
(whether by statute or judicial decision) permits greater indemnification by agreement than would
be afforded currently under this Agreement, it is the intent of the parties hereto that Indemnitee
shall enjoy by this Agreement the greater benefits so afforded by that change. Indemnitee’s rights
under this Agreement shall not be diminished by any amendment to the Certificate of Incorporation
or Bylaws, or of any other agreement or instrument to which Indemnitee is not a party, and shall
not diminish any other rights that Indemnitee now or in the future has against the Company.

     10. Liability Insurance. Except as otherwise agreed to by the Company and Indemnitee in a
written agreement, to the extent the Company maintains an insurance policy or

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policies providing directors’ and officers’ liability insurance, Indemnitee shall be covered by
that policy or those policies, in accordance with its or their terms, to the maximum extent of the
coverage available for any Company director or officer.

     11. Period of Limitations. No action, lawsuit, or proceeding may be brought against
Indemnitee or Indemnitee’s spouse, heirs, executors, or personal or legal representatives, nor may
any cause of action be asserted in any such action, lawsuit, or proceeding, by or on behalf of the
Company, after the expiration of two years after the statute of limitations commences with respect
to Indemnitee’s act or omission that gave rise to the action, lawsuit, proceeding, or cause of
action; provided, however, that, if any shorter period of limitations is otherwise applicable to
any such action, lawsuit, proceeding, or cause of action, the shorter period shall govern.

     12. Amendments. No supplement, modification, or amendment of this Agreement shall be
binding unless executed in writing by both of the parties hereto. No waiver of any provision of
this Agreement shall be effective unless in a writing signed by the party granting the waiver. No
waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar) nor shall that waiver constitute a continuing
waiver.

     13. Other Sources. Indemnitee shall not be required to exercise any rights that Indemnitee
may have against any other Person (for example, under an insurance policy) before Indemnitee
enforces his rights under this Agreement. However, to the extent the Company actually indemnifies
Indemnitee or advances him Expenses, the Company shall be subrogated to the rights of Indemnitee
and shall be entitled to enforce any such rights which Indemnitee may have against third parties.
Indemnitee shall assist the Company in enforcing those rights if it pays his costs and expenses of
doing so. If Indemnitee is actually indemnified or advanced Expenses by any third party, then, for
so long as Indemnitee is not required to disgorge the amounts so received, to that extent the
Company shall be relieved of its obligation to indemnify Indemnitee or advance Indemnitee Expenses.

     14. Binding Effect. This Agreement shall be binding upon and inure to the benefit of and
be enforceable by the parties hereto and their respective successors, assigns (including any direct
or indirect successor by merger or consolidation), spouses, heirs, and personal and legal
representatives. This Agreement shall continue in effect regardless of whether Indemnitee continues
to serve as an officer or director of the Company or another enterprise at the Company’s request.

     15. Severability. If any provision of this Agreement is held to be illegal, invalid, or
unenforceable under present or future laws effective during the term hereof, that provision shall
be fully severable; this Agreement shall be construed and enforced as if that illegal, invalid, or
unenforceable provision had never comprised a part hereof; and the remaining provisions shall
remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable
provision or by its severance from this Agreement. Furthermore, in lieu of that illegal, invalid,
or unenforceable provision, there shall be added automatically as a part of this Agreement a
provision as similar in terms to the illegal, invalid, or unenforceable provision as may be
possible and be legal, valid, and enforceable.

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     16. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware applicable to contracts made and to be performed
in that state without giving effect to the principles of conflicts of laws.

     17. Headings. The headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement.

     18. Notices. Whenever this Agreement requires or permits notice to be given by one party
to the other, such notice must be in writing to be effective and shall be deemed delivered and
received by the party to whom it is sent upon actual receipt (by any means) of such notice. Receipt
of a notice by the Secretary of the Company shall be deemed receipt of such notice by the Company.

     19. Complete Agreement. This Agreement constitutes the complete understanding and agreement
among the parties with respect to the subject matter hereof and supersedes all prior agreements and
understandings between the parties with respect to the subject matter hereof, other than any
indemnification rights that Indemnitee may enjoy under the Certificate of Incorporation, the
Bylaws, or the Delaware General Corporation Law.

     20. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but in making proof hereof it shall not be necessary to produce
or account for more than one such counterpart.

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     EXECUTED as of the date first written above.

	 	 	 	 	 
	 	SWIFT FOODS COMPANY

 	 
	 	By:  	/s/ John N. Simons
 	 
	 	 	John N. Simons 	 
	 	 	Chief Executive Officer and President 	 
	 
	 	INDEMNITEE:

 	 
	 	/s/ Kate Lavelle 	 
	 	Kate Lavelleexv10w1

 

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

     This EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is made as of the 10th day of January, 2005
between Moldflow Corporation, a Delaware corporation (the “Company”), and Christopher L. Gorgone
(“Executive”).

     WHEREAS, the Company desires to employ Executive and Executive desires to be employed by the
Company on the terms contained herein.

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

1. Employment. The term of this Agreement shall extend from the date hereof (the “Commencement
Date”) until the first anniversary of the Commencement Date and shall automatically be extended for
one additional year on each anniversary thereafter unless, not less than 30 days prior to each such
date, either party shall have given notice that it does not wish to extend this Agreement;
provided, further, that following a Change in Control the term of this Agreement shall continue in
effect for a period of not less than twelve (12) months beyond the month in which the Change in
Control occurred. The term of this Agreement shall be subject to termination as provided in
Paragraph 6 and may be referred to herein as the “Period of Employment.”

2. Position and Duties. During the Period of Employment, Executive shall serve as the Executive
Vice President of Finance and Chief Financial Officer and shall have such duties as may from time
to time be prescribed by the Chief Executive Officer or the Board of Directors of the Company (the
“Board”). Executive shall devote his full working time and efforts to the business and affairs of
the Company.

3. Compensation and Related Matters.

     (a) Base Salary and Incentive Compensation. Executive’s initial annual base salary shall be
$210,000. Executive’s base salary shall be redetermined annually by the Chief Executive Officer,
the Board or a Committee thereof. The annual base salary in effect at any given time is referred
to herein as “Base Salary.” The Base Salary shall be payable in a manner consistent with the
general payroll policy of the Company. In addition to Base Salary, Executive shall be eligible to
participate in such incentive compensation plans and Employee Benefit Plans as the Board or a
Committee thereof shall determine from time to time for senior executives of the Company. As used
herein, the term “Employee Benefit Plans” includes, without limitation, each pension and retirement
plan; supplemental pension, retirement and deferred compensation plan; savings and profit-sharing
plan; stock ownership plan; stock purchase plan; stock option plan; life insurance plan; medical
insurance plan; disability plan; and health and accident plan or arrangement established and
maintained by the Company.

     (b) Vacations. Executive shall be entitled to twenty (20) paid vacation days in each fiscal
year, which shall be accrued ratably during the fiscal year, and Executive shall also be entitled
to all paid holidays given by the Company to its executives. Executive shall be entitled to
additional vacation based on any policy of the Company that provides for additional vacation based
on years of service or other criteria.

     (c) Additional Benefits. During the Period of Employment the Company will reimburse the
Executive for the cost of a supplemental policy of long-term disability insurance for the
Executive.

     (d) Indemnification and Directors’ and Officers’ Insurance. During Executive’s employment and
for the period of time following termination of the Executive for any reason during which time
Executive could be subject to any claim based on his position in the Company, Executive shall
receive the maximum indemnification protection from the Company as permitted by the Company’s
by-laws and shall receive directors’ and officers’ insurance coverage equivalent to that which is
provided to any other director or officer of the Company.

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4. Unauthorized Disclosure.

     Executive acknowledges that in the course of his employment with the Company (and, if
applicable, its predecessors), he has and will become acquainted with the Company’s business
affairs, information, trade secrets, and other matters which are of a proprietary or confidential
nature, including but not limited to the Company’s and its affiliates’ and predecessors’
operations, business opportunities, price and cost information, finance, customer information,
product development information, business plans, various sales techniques, manuals, letters,
notebooks, procedures, reports, products, processes, services, and other confidential information
and knowledge (collectively the “Confidential Information”) concerning the Company’s and its
affiliates’ and predecessors’ business. Executive understands and acknowledges that such
Confidential Information is confidential, and he agrees not to disclose such Confidential
Information to anyone outside the Company except to the extent that (i) Executive deems such
disclosure or use reasonably necessary or appropriate in connection with performing his duties on
behalf of the Company; (ii) Executive is required by order of a court of competent jurisdiction (by
subpoena or similar process) to disclose or discuss any Confidential Information, provided that in
such case, Executive shall promptly inform the Company of such event, shall cooperate with the
Company in attempting to obtain a protective order or to otherwise restrict such disclosure, and
shall only disclose Confidential Information to the minimum extent necessary to comply with any
such court order; or (iii) such Confidential Information becomes generally known to and available
for use in the Company’s industry, other than as a result of any action or inaction by Executive.
Executive further agrees that he will not during employment and/or at any time thereafter use such
Confidential Information in competing, directly or indirectly, with the Company. At such time as
Executive shall cease to be employed by the Company, he will immediately turn over to the Company
all Confidential Information, including papers, documents, writings, electronically stored
information, other property, and all copies of them provided to or created by him during the course
of his employment with the Company. The foregoing provisions shall be binding upon Executive’s
heirs, successors, and legal representatives and shall survive the termination of this Agreement
for any reason.

5. Covenant Not to Compete. In consideration for Executive’s employment by the Company under the
terms provided in this Agreement and as a means to aid in the performance and enforcement of the
terms of the provisions of Paragraph 4, Executive agrees that:

     (a) during the Period of Employment and for a period of twelve (12) months thereafter,
regardless of the reason for termination of employment, Executive will not, directly or indirectly,
as an owner, director, principal, agent, officer, employee, partner, consultant, servant, or
otherwise, carry on, operate, manage, control, or become involved in any manner with any business,
operation, corporation, partnership, association, agency, or other person or entity which is
engaged in a business that is directly competitive with any of the Company’s products which are
produced or in development by the Company as of the date of Executive’s termination of employment,
anywhere in the world; provided, however, that the foregoing shall not prohibit Executive from
owning up to one percent (1%) of the outstanding stock of a publicly held company engaged in
activities competitive with that of the Company; and

     (b) during the term of Executive’s employment with the Company and for a period of twelve (12)
months thereafter, regardless of the reason for termination of employment, Executive will not
directly or indirectly solicit or induce any present or future employee of the Company or any
affiliate of the Company to accept employment with Executive or with any business, operation,
corporation, partnership, association, agency, or other person or entity with which Executive may
be associated, and Executive will not knowingly employ or cause any business, operation,
corporation, partnership, association, agency, or other person or entity with which Executive may
be associated to employ any present or future employee of the Company without providing the Company
with ten (10) days’ prior written notice of such proposed employment.

     Should Executive violate any of the provisions of this Paragraph, then in addition to all
other rights and remedies available to the Company at law or in equity, the duration of this
covenant shall automatically be extended for the period of time from which Executive began such
violation until he permanently ceases such violation.

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6. Termination. Except for termination as specified in Subparagraph 6(a), any termination of
Executive’s employment by the Company or any such termination by Executive shall be communicated by
written notice of termination to the other party hereto. Executive’s employment hereunder may be
terminated without any breach of this Agreement under the following circumstances:

     (a) Death. Executive’s employment hereunder shall terminate upon his death.

     (b) Disability. If, as a result of Executive’s incapacity due to physical or mental illness,
Executive shall have been absent from his duties hereunder on a full-time basis for one hundred
eighty (180) calendar days in the aggregate in any twelve (12) month period, the Company may
terminate Executive’s employment hereunder.

     (c) Termination by Company For Cause. At any time during the Period of Employment, the
Company may terminate Executive’s employment hereunder for Cause if such termination is approved by
not less than a majority of the Board. For purposes of this Agreement, “Cause” shall mean: (A)
conduct by Executive constituting a material act of willful misconduct in connection with the
performance of his duties; (B) criminal or civil conviction of Executive, a plea of nolo contendere
by Executive or conduct by Executive that would reasonably be expected to result in material injury
to the reputation of the Company if he were retained in his position with the Company; (C)
continued, willful and deliberate non-performance by Executive of his duties hereunder (other than
by reason of Executive’s physical or mental illness, incapacity or disability) which has continued
for more than thirty (30) days following written notice of such non-performance from the Board; or
(D) a breach by Executive of any of the provisions contained in Paragraphs 4 and 5 of this
Agreement.

     (d) Termination Without Cause. At any time during the Period of Employment, the Company may
terminate Executive’s employment hereunder without Cause if such termination is approved by a
majority of the Company’s Board of Directors. Any termination by the Company of Executive’s
employment under this Agreement which does not constitute a termination for Cause under
Subparagraph 6(c) or result from the death or disability of the Executive under Subparagraph 6(a)
or (b) shall be deemed a termination without Cause. If the Company provides notice to Executive
under Paragraph 1 that it does not wish to extend the Period of Employment, such action shall be
deemed a termination without Cause.

     (e) Termination by Executive. At any time during the Period of Employment, Executive
may terminate his employment hereunder for any reason, including but not limited to Good Reason.
If Executive provides notice to the Company under Paragraph 1 that he does not wish to extend the
Period of Employment, such action shall be deemed a voluntary termination by Executive and one
without Good Reason. For purposes of this Agreement, “Good Reason” shall mean: (A) a substantial
diminution or other substantive adverse change, not consented to by Executive, in the nature or
scope of Executive’s responsibilities, authorities, powers, functions or duties; (B) any removal,
during the Period of Employment, from Executive of his title as set forth in paragraph 2 of this
Agreement; (C) an involuntary reduction in Executive’s Base Salary except for across-the-board
reductions similarly affecting all or substantially all management employees; (D) a breach by the
Company of any of its other material obligations under this Agreement and the failure of the
Company to cure such breach within thirty (30) days after written notice thereof by Executive; (E)
the involuntary relocation of the Company’s offices at which Executive is principally employed or
the involuntary relocation of the offices of Executive’s primary workgroup to a location more than
thirty (30) miles from such offices, or the requirement by the Company that Executive be based
anywhere other than the Company’s offices at such location on an extended basis, except for
required travel on the Company’s business to an extent substantially consistent with Executive’s
business travel obligations; or (F) the failure of the Company to obtain the agreement from any
successor to the Company to assume and agree to perform this Agreement as required by Paragraph 10.

     (f) Date of Termination. “Date of Termination” shall mean: (A) if Executive’s employment is
terminated by his death, the date of his death; (B) if Executive’s employment is terminated under
Subparagraph 6(b) or under Subparagraph 6(c), the date on which Notice of Termination is given; (C)
if Executive’s employment is terminated by the Company under Subparagraph 6(d), thirty (30) days
after the date on which a Notice of Termination is given; and (D) if Executive’s employment is
terminated by Executive under Subparagraph 6(e), thirty

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(30) days after the date on which a Notice
of Termination is given, unless the Company cures the Good Reason event prompting the Executive to
issue a Notice of Termination.

7. Compensation Upon Termination or During Disability.

     (a) If Executive’s employment terminates by reason of his death, the Company shall, within
ninety (90) days of death, pay in a lump sum amount to such person as Executive shall designate in
a notice filed with the Company or, if no such person is designated, to Executive’s estate,
Executive’s accrued and unpaid Base Salary, plus accrued vacation, to the date of his death, plus
his accrued and unpaid incentive compensation (including any bonus payment, if any, under
Subparagraph 3(a) that is earned with respect to any financial period but which has not yet been
authorized for payment by the Board of Directors or any committee thereof, which shall be paid if
and when it is so authorized by the Board of Directors)). Upon the death of Executive, (i) all
stock options which would otherwise vest over the next twelve (12) months shall immediately vest in
Executive’s estate or other legal representatives and become exercisable, and Executive’s estate or
other legal representatives shall have twelve (12) months from the Date of Termination or the
remaining option term, if earlier, to exercise all such stock options granted to Executive and (ii)
all repurchase rights and other restrictions on the shares of Restricted Stock held by the
Executive which would otherwise lapse over the next twelve (12) months shall immediately lapse.
All other stock-based grants and awards held by Executive shall be canceled upon the death of
Executive in accordance with their terms. For a period of one (1) year following the Date of
Termination, the Company shall pay such health and dental insurance premiums as may be necessary to
allow Executive’s spouse and dependents to receive health and dental insurance coverage
substantially similar to coverage they received immediately prior to the Date of Termination. In
addition to the foregoing, any payments to which Executive’s spouse, beneficiaries, or estate may
be entitled under any employee benefit plan shall also be paid in accordance with the terms of such
plan or arrangement. Such payments, in the aggregate, shall fully discharge the Company’s
obligations hereunder.

     (b) During any period that Executive fails to perform his duties hereunder as a result
of incapacity due to physical or mental illness, Executive shall continue to receive his accrued
and unpaid Base Salary, plus accrued vacation, and accrued and unpaid incentive compensation
(including any bonus payment, if any, under Subparagraph 3(a) that is earned with respect to any
financial period but which has not yet been authorized for payment by the Board of Directors or any
committee thereof, which shall be paid if and when it is so authorized by the Board of Directors),
until Executive’s employment is terminated due to disability in accordance with Subparagraph 6(b)
or until Executive terminates his employment in accordance with Subparagraph 6(e), whichever first
occurs. Upon the Date of Termination, (i) all stock options which would otherwise vest over the
next twelve (12) months shall immediately vest and become exercisable, and Executive shall have
twelve (12) months from the Date of Termination or the remaining option term, if earlier, to
exercise all such stock options granted to Executive and (ii) all repurchase rights and other
restrictions on the shares of Restricted Stock held by the Executive which would otherwise lapse
over the next twelve (12) months shall immediately lapse. All other stock-based grants and awards
held by Executive shall vest or be canceled upon the Date of Termination in accordance with their
terms. For a period of one (1) year following the Date of Termination, the Company shall pay such
health and dental insurance premiums as may be necessary to allow Executive and Executive’s spouse
and dependents to receive health and dental insurance coverage substantially similar to coverage
they received prior to the Date of Termination. In addition to the foregoing, any payments to
which Executive may be entitled under any employee benefit plan shall also be paid in accordance
with the terms of such plan or arrangement.

     (c) If Executive’s employment is terminated by Executive other than for Good Reason as
provided in Subparagraph 6(e), then the Company shall, through the Date of Termination, pay
Executive his accrued and unpaid Base Salary plus accrued vacation, at the rate in effect at the
time Notice of Termination is given. Thereafter, the Company shall have no further obligations to
Executive except as otherwise expressly provided under this Agreement. In addition, all vested but
unexercised stock options held by Executive as of the Date of Termination must be exercised by
Executive within three (3) months following the Date of Termination or by the end of the option
term, if earlier. All other stock-based grants and awards held by Executive shall vest or be
canceled upon the Date of Termination in accordance with their terms.

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     (d) If Executive terminates his employment for Good Reason as provided in Subparagraph 6(e) or
if Executive’s employment is terminated by the Company without Cause as provided in Subparagraph
6(d), then the Company shall, through the Date of Termination, pay Executive his accrued and unpaid
Base Salary, plus accrued vacation, at the rate in effect at the time Notice of Termination is
given and his accrued and unpaid incentive compensation (including any bonus payment, if any, under
Subparagraph 3(a) that is earned with respect to any financial period but which has not yet been
authorized for payment by the Board of Directors or any committee thereof, which shall be paid if
and when it is so authorized by the Board of Directors). In addition, subject to signing by
Executive of a general release of claims in a form and manner satisfactory to the Company, the
Company shall provide the following benefits to Executive:

(i) The Company shall pay Executive an amount equal one (1) times the sum of (A)
Executive’s Base Salary in effect on the Date of Termination and (B) the Executive’s average
annual bonus or other variable cash compensation (including commissions) over the five (5)
fiscal years immediately prior to the year of termination (the “Termination Amount”). The
Termination Amount shall be calculated by the Company within ten (10) business days
following the Date of Termination and communicated to the Executive in writing and shall
then be paid out in accordance with the Company’s standard payroll practices in equal
installments over 12 months following the Date of Termination. Notwithstanding the
foregoing, if the Executive breaches any of the provisions contained in Paragraphs 4 and 5
of this Agreement, then all further payments of the Termination Amount shall immediately
cease.

          (ii) Upon the Date of Termination, (i) all stock options which would otherwise vest
over the next twelve (12) months shall immediately vest and become exercisable, and
Executive shall have twelve (12) months from the Date of Termination or the remaining option
term, if earlier, to exercise all such stock options granted to Executive and (ii) all
repurchase rights and other restrictions on the shares of Restricted Stock held by the
Executive which would otherwise lapse over the next twelve (12) months shall immediately
lapse. All other stock-based grants and awards held by Executive shall be canceled upon the
Termination Date in accordance with their terms.

          (iii) In addition to any other benefits to which Executive may be entitled in
accordance with the Company’s then existing severance policies, the Company shall, for a
period of one (1) year commencing on the Date of Termination, pay such health and dental
insurance premiums as may be necessary to allow Executive and Executive’s spouse and
dependents to continue to receive health and dental insurance coverage substantially similar
to coverage they received prior to the Date of Termination. In addition to the foregoing,
any payments to which Executive may be entitled under any employee benefit plan shall also
be paid in accordance with the terms of such plan or arrangement.

     (e) If Executive’s employment is terminated by the Company for Cause as provided in
Subparagraph 6(c), then the Company shall, through the Date of Termination, pay Executive his
accrued and unpaid Base Salary at the rate in effect at the time Notice of Termination is given.
Thereafter, the Company shall have no further obligations to Executive except as otherwise
expressly provided under this Agreement. In addition, all stock options held by Executive as of
the Date of Termination shall cease to vest as of the Date of Termination and Executive shall have
30 days from the Date of Termination or the remaining option term, if earlier, to exercise all such
vested stock options. All other stock-based grants and awards held by Executive shall be canceled
upon the Termination Date in accordance with their terms.

     (f) Nothing contained in the foregoing Subparagraphs 7(a) through 7(e) shall be construed so
as to affect Executive’s rights or the Company’s obligations relating to agreements or benefits
that are unrelated to termination of employment.

8. Change in Control Benefit. Upon a Change of Control of the Company the following
provisions shall apply in lieu of, and expressly supersede, the provisions of Subparagraph 7(d).

5

 

     (a) Change in Control.

     (i) In the event that within 12 months following a Change of Control, the Executive
terminates his employment for Good Reason or if the Executive’s employment is terminated by
the Company without Cause, the Company shall pay Executive an amount equal to 1.5 times the
sum of (A) Executive’s Base Salary and (B) the Executive’s cash bonus or other variable cash
compensation (including commissions) that would be payable to the Executive during the
fiscal year in which the Change of Control occurred if the Company and the Executive had met
all of the targets required for a full payment of such cash bonus or other variable cash
compensation (collectively, the “Severance Amount”). The Severance Amount shall be
calculated by the Company within ten (10) business days following the Date of Termination
and communicated to the Executive in writing and shall then be paid out in accordance with
the Company’s standard payroll practices in equal installments over the 18 month period.
For purposes of this Agreement, “Base Salary” shall mean the annual Base Salary in effect on
the Date of Termination. Notwithstanding the foregoing, if the Executive breaches any of
the provisions contained in Paragraphs 4 and 5 of this Agreement then all further payments
of the Severance Amount shall immediately cease. Furthermore, in the event Executive
terminates his employment for Good Reason as provided in Subparagraph 6(e), he shall be
entitled to the Severance Amount only if he provides the Notice of Termination provided for
in Subparagraph 6(a) within sixty (60) days after the occurrence of the event or events
which constitute such Good Reason as specified in Subparagraph 6(e); and

     (ii) Notwithstanding anything to the contrary in any applicable option agreement or
stock-based award agreement, upon a Change in Control, all stock options and other
stock-based awards granted to Executive by the Company shall immediately accelerate and
become exercisable or non-forfeitable as of the effective date of such Change in Control.
Executive shall also be entitled to any other rights and benefits with respect to
stock-related awards, to the extent and upon the terms provided in the employee stock option
or incentive plan or any agreement or other instrument attendant thereto pursuant to which
such options or awards were granted; and

     (iii) The Company shall, for a period of one (1) year commencing on the Date of
Termination, pay such health and dental insurance premiums as may be necessary to allow
Executive, Executive’s spouse and dependents to continue to receive health and dental
insurance coverage substantially similar to the coverage they received prior to the Date of
Termination.

     (b) Definitions. For purposes of this Paragraph 8, the following terms shall have the
following meanings:

“Change in Control” shall mean any of the following:

     (a) any “person,” as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Act”) (other than the Company, any of its
subsidiaries, or any trustee, fiduciary or other person or entity holding securities under
any employee benefit plan or trust of the Company or any of its subsidiaries), together with
all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the Act) of
such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3
under the Act), directly or indirectly, of securities of the Company representing forty
percent (40%)or more of either (A) the combined voting power of the Company’s then
outstanding securities having the right to vote in an election of the Company’s Board
(“Voting Securities”) or (B) the then outstanding shares of Company’s common stock, par
value $0.01 per share (“Common Stock”) (other than as a result of an acquisition of
securities directly from the Company); or

     (b) persons who, as of the Commencement Date, constitute the Company’s Board (the
“Incumbent Directors”) cease for any reason, including, without limitation, as a result of a
tender offer, proxy contest, merger or similar transaction, to constitute at least a
majority of the Board, provided that any

6

 

person becoming a director of the Company
subsequent to the Commencement Date shall be considered an Incumbent Director if such
person’s election was approved by or such person was nominated for election by a vote of at
least a majority of the Incumbent Directors; but provided further, that any such person
whose initial assumption of office is in connection with an actual or threatened election
contest relating to the election of members of the Board or other actual or threatened
solicitation of proxies or consents by or on behalf of a person other than the Board,
including by reason of agreement intended to avoid or settle any such actual or threatened
contest or solicitation, shall not be considered an Incumbent Director; or

     (c) the stockholders of the Company shall approve (A) any consolidation or merger of
the Company where the stockholders of the Company, immediately prior to the consolidation or
merger, would not, immediately after the consolidation or merger, beneficially own (as such
term is defined in Rule 13d-3 under the Act), directly or indirectly, shares representing in
the aggregate more than fifty percent (50%) of the voting shares of the Company issuing cash
or securities in the consolidation or merger (or of its ultimate parent corporation, if
any), (B) any sale, lease, exchange or other transfer (in one transaction or a series of
transactions contemplated or arranged by any party as a single plan) of all or substantially
all of the assets of the Company or (C) any plan or proposal for the liquidation or
dissolution of the Company.

     Notwithstanding the foregoing, a “Change of Control” shall not be deemed to have
occurred for purposes of the foregoing clause (a) solely as the result of an acquisition of
securities by the Company which, by reducing the number of shares of Common Stock or other Voting
Securities outstanding, increases the proportionate number of shares beneficially owned by any
person to forty percent (40%) or more of either (A) the combined voting power of all of the then
outstanding Voting Securities or (B) Common Stock; provided, however, that if any
person referred to in this sentence shall thereafter become the beneficial owner of any additional
shares of Voting Securities or Common Stock (other than pursuant to a stock split, stock dividend,
or similar transaction or as a result of an acquisition of securities directly from the Company)
and immediately thereafter beneficially owns forty percent (40%) or more of either (A) the combined
voting power of all of the then outstanding Voting Securities or (B) Common Stock, then a “Change
of Control” shall be deemed to have occurred for purposes of the foregoing clause (a).

9. Notice. For purposes of this Agreement, notices and all other communications provided for in
the Agreement shall be in writing and shall be deemed to have been duly given when delivered or
mailed by United States certified mail, return receipt requested, postage prepaid, addressed as
follows:

     if to the Executive:

At his home address as shown

in the Company’s personnel records;

     if to the Company:

Moldflow Corporation

430 Boston Post Road

Wayland, MA 01778

Attention: Chief Executive Officer

Copy to: General Counsel

or to such other address as either party may have furnished to the other in writing in accordance
herewith, except that notices of change of address shall be effective only upon receipt.

10. Successor to Company. The Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets
of the Company expressly to assume and agree to perform this Agreement to the same extent that the
Company would be required to perform it if no succession had taken place. Failure of the Company
to obtain an assumption of this Agreement at or prior to the

7

 

effectiveness of any succession shall
be a breach of this Agreement and shall constitute Good Reason if the Executive elects to terminate
employment.

11. Miscellaneous. No provisions of this Agreement may be modified, waived, or discharged unless
such waiver, modification, or discharge is agreed to in writing and signed by Executive and such
officer of the Company as may be specifically designated by the Board. No agreements or
representations, oral or otherwise, express or implied, unless specifically referred to herein,
with respect to the subject matter hereof have been made by either party which are not set forth
expressly in this Agreement. The validity, interpretation, construction, and performance of this
Agreement shall be governed by the laws of the Commonwealth of Massachusetts (without regard to
principles of conflicts of laws).

12. Validity. The invalidity or unenforceability of any provision or provisions of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

13. Counterparts. This Agreement may be executed in several counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the same instrument.

14. Arbitration; Other Disputes. In the event of any dispute or controversy arising under or in
connection with this Agreement, the parties shall first try in good faith for a period of 30 days
to settle such dispute or controversy by mediation under the applicable rules of the American
Arbitration Association before resorting to arbitration. Following such time period, the parties
will settle any remaining dispute or controversy exclusively by arbitration in Boston,
Massachusetts in accordance with the rules of the American Arbitration Association then in effect.
Judgment may be entered on the arbitrator’s award in any court having jurisdiction.
Notwithstanding the above, the Company shall be entitled to seek a restraining order or injunction
in any court of competent jurisdiction to prevent any continuation of any violation of Paragraph 4
or 5 hereof.

15. Litigation and Regulatory Cooperation. During and after Executive’s employment,
Executive shall reasonably cooperate with the Company in the defense or prosecution of any claims
or actions now in existence or which may be brought in the future against or on behalf of the
Company which relate to events or occurrences that transpired while Executive was employed by the
Company; provided, however, that such cooperation shall not materially and adversely affect
Executive or expose Executive to an increased probability of civil or criminal litigation. The
Company shall also provide Executive with compensation on an hourly basis (to be derived from his
Base Salary) for requested litigation and regulatory cooperation that occurs after his termination
of employment, and reimburse Executive for all costs and expenses incurred in connection with his
performance under this Paragraph 15, including, but not limited to, reasonable attorneys’ fees and
costs.

8

 

     IN WITNESS WHEREOF, the parties have executed this Agreement effective on the date and year
first above written.

	 	 	 
	 

	 	MOLDFLOW CORPORATION
	 
	 	 
	

	 	By:
	 
	 	 
	

	 	Its:
	 
	 	 
	

	 	EXECUTIVE
	 
	 	 
	

	 	Christopher L. Gorgone

9

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