Document:

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                                                                    EXHIBIT 10.1

                   EMPRESS CASINO JOLIET SETTLEMENT AGREEMENT

        This Empress Casino Joliet Settlement Agreement (the "Agreement") is
entered into between the Illinois Gaming Board ("Gaming Board"), Horseshoe
Gaming Holding Corp. ("HGHC"), HGHC's wholly-owned subsidiary Empress Casino
Joliet Corporation ("Empress") and Jack Binion ("Binion") effective as of the
date of execution by all parties (the "Effective Date").

        WHEREAS on June 30, 2000 the Gaming Board, pursuant to Sections 5(b)(1),
7(a) and 7(g) of the Riverboat Gambling Act (the "Act") and Board Rule 3000.236,
made an initial decision to deny Empress's application for renewal of its
owner's license (the "Initial Finding") based upon the Gaming Board's
preliminary findings that Jack Binion and Empress failed to establish by clear
and convincing evidence that they met the standards set forth under Sections
7(a), 7(b) and 7(g) of the Act and the Board Rules.

        WHEREAS on July 19, 2000 the Gaming Board timely filed its formal Notice
of Denial denying Empress's application for renewal of its owner's license and
alleging certain grounds as the basis for denial.

        WHEREAS on July 26, 2000 Empress, pursuant to Board Rule 3000.405,
timely filed its verified Request for Hearing in which it denied each of the
allegations in the Notice of Denial and asserted defenses to those allegations.

        WHEREAS on August 1, 2000 Gaming Board Chairman Gregory C. Jones granted
Empress's Request for Hearing and appointed an Administrative Law Judge to
conduct such a hearing.

        WHEREAS the proceeding before the Administrative Law Judge will provide
HGHC, Empress, Binion and the Gaming Board with an opportunity to establish a
complete and accurate evidentiary record based on testimony given under oath or
affirmation and subject to cross-examination regarding the allegations cited in
the Gaming Board's Initial Finding and Notice of Denial (the "Hearing").

        WHEREAS only after the Administrative Law Judge hears the evidence,
makes an adjudication and transmits its findings to the Gaming Board, and only
if the Gaming Board then adopts those findings or otherwise takes final action
does the action of the Gaming Board carry the force of law and become appealable
in the courts.

        WHEREAS the Gaming Board, HGHC, Empress and Binion mutually desire to
avoid the expense and risk of protracted litigation.

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        NOW THEREFORE, in consideration of the foregoing premises (which
constitute an integral part of this Agreement) and the mutual covenants
hereinafter set forth, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Gaming Board,
HGHC, Empress and Binion hereby agree as follows:

                                      TERMS

        1. By entering into this Agreement, HGHC, Empress and Binion are making
no admissions regarding the accuracy or truthfulness of the allegations of the
Gaming Board's Initial Finding and Notice of Denial and are herein specifically
denying those allegations.

        2. Not later than thirty (30) days following the Effective Date, HGHC
shall engage an independent, nationally-recognized investment banking firm to
arrange for the sale of HGHC's ownership interest in Empress, subject to the
Gaming Board's approval of the proposed transaction and the prospective
purchaser of Empress ("Prospective Purchaser"). If HGHC does not enter into an
enforceable and definitive agreement to sell its ownership interest in Empress
within one hundred fifty (150) days of the Effective Date of this Agreement,
HGHC will cause Empress to establish a five (5) person Board of Directors (the
"New Empress Board") comprised of no more than two (2) non-independent directors
(the "Non-Independent Directors") selected by HGHC and at least three (3)
outside independent directors (the "Independent Directors"), each of which
Non-Independent and Independent Director must be approved by the Gaming Board as
provided below. Within ninety (90) days of the Effective Date, HGHC and Binion
will submit the names of at least two (2) proposed Non-Independent Directors and
the names of at least three (3) proposed Independent Directors for the Gaming
Board's approval. If the Gaming Board does not approve one or more of the
persons submitted by HGHC and Binion to be Non-Independent or Independent
Directors, the Gaming Board will notify HGHC and Binion in writing of such
disapproval ("Notice of Disapproval"). Within fourteen (14) days of receiving a
Notice of Disapproval from the Gaming Board, HGHC and Binion will submit the
names of other proposed Non-Independent Directors or Independent Directors, as
the case may be, for the Gaming Board's approval. This process will continue
until the Gaming Board approves no more than two (2) Non-Independent Directors
and at least three (3) Independent Directors. Pursuant to Board Rules 220 and
223, HGHC will reimburse the Gaming Board for the cost of the Gaming Board's
investigation of the prospective Non-Independent and Independent Directors. If a
New Empress Board is established pursuant to this Agreement, the persons who
comprise the Board of Directors for Empress at the time that the New Empress
Board is established will be immediately relieved of their duties and will have
no further responsibilities relating to the management or operation of Empress,
unless such person(s) has been approved as a Non-Independent Director as
provided for herein.

        3. The New Empress Board established in accordance with this Agreement
will discharge its responsibilities and duties in accordance with the Memorandum
of Understanding entered into between the Gaming Board, on the one hand, and
HGHC, Empress and Binion, on the other hand. If a Trustee is appointed pursuant
to paragraph 9 of this Agreement, the Board of Directors shall consult with that
Trustee regarding any decisions that may affect or impact the sale of HGHC's
ownership interest in Empress. An executed copy of the Memorandum of
Understanding is attached hereto as Exhibit A and is expressly incorporated in
this Agreement by reference herein.

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        4. Notwithstanding any other provision contained in this Agreement, no
later than ninety (90) days from the Effective Date of this Agreement or upon
the closing of HGHC's sale of Empress, whichever should occur first, Binion
shall: (a) notify the Gaming Board in writing that he is withdrawing his request
to be approved as a Key Person under the Act ("Notice of Withdrawal"); (b) cease
to exercise, either directly or indirectly, at the HGHC parent level or
otherwise, any control over the management or operation of the day to day
activities of Empress; (c) cease to receive any direct form of compensation or
dividends from the operation of the Empress; (d) cease to serve as a director,
officer, employee or consultant to Empress; and (e) until HGHC's corporate
offices are relocated from the Empress premises, which relocation shall take
place no more than one hundred twenty (120) days from the Effective Date, Binion
shall use or otherwise occupy HGHC's corporate offices at Empress only to
perform services that are related to HGHC's ownership interest in non-Illinois
casinos.

        Moreover, by entering into this Agreement, Binion hereby agrees that he
will not apply for licensure under the Act in the future nor will he put himself
in a position in the future whereby he will be subject to being approved by the
Gaming Board under the Act. None of the terms of this agreement shall have any
effect upon or application to any proceeds or benefits from the sale of Empress
flowing to HGHC or Binion.

        5. Notwithstanding any other provision in this Agreement, Binion may,
from the Effective Date to the Divestiture Date, as defined in paragraph 8 of
this Agreement, continue to perform services for HGHC that are directly related
to assisting the sale of HGHC's interest in Empress.

        6. Upon Binion's submission of his Notice of Withdrawal to the Gaming
Board, Empress shall withdraw as moot that portion of its Request for Hearing
that relates to Binion ("Empress's Withdrawal"). Upon receipt of the Notice of
Withdrawal and Empress's Withdrawal, the Gaming Board shall acknowledge by an
of-record resolution that the Gaming Board accepts said Notice of Withdrawal and
Empress's Withdrawal and that, as a result, the Gaming Board's Initial Finding
as to Binion only has become moot and without legal or practical significance
for the purposes of licensing in Illinois.

        7. If HGHC enters into an enforceable and definitive agreement to sell
Empress within 150 days from the Effective Date, but no closing of such sale
occurs within 150 days from the Effective Date, the "Current Management" of
Empress (defined herein to include all current personnel responsible for
operating and managing Empress, except Binion) may, in the sole and absolute
discretion of the Gaming Board, remain in place and continue to manage and
operate Empress until the closing of such sale or January 31, 2002, whichever
occurs first. If the Gaming Board determines at any time after 150 days from the
Effective Date that the Current Management of Empress requires the oversight of
a Board of Directors other than the Board then in place, upon the order of the
Gaming Board, HGHC will cause Empress to establish the New Empress Board.
Notwithstanding any other provision of this paragraph, the Gaming Board, in its
sole and absolute discretion, may permit the Current Management to remain in
place beyond January 31, 2002.

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        8. By not later than January 31, 2002 (the "Divestiture Date"), HGHC
will divest its ownership interest in Empress to a party or parties who, in the
Gaming Board's sole and absolute discretion, meet the suitability requirements
and all other requirements for licensure under the Act and the Board Rules.
Notwithstanding the foregoing sentence of this paragraph, the Gaming Board, in
its sole and absolute discretion, may extend the Divestiture Date. The Gaming
Board shall make every reasonable effort to expedite the process of
investigating and determining the suitability of the Prospective Purchaser. If
the investigation of the controlling shareholders (as defined by the by-laws of
the Prospective Purchaser) and Key Persons, as that term is defined in the Act
and Board Rules, of the Prospective Purchaser has not been completed by the
Divestiture Date, the Divestiture Date shall be extended until the investigation
of the controlling shareholders and Key Persons has been completed by the Gaming
Board.

        9. In the event that HGHC fails to divest its ownership interest in
Empress by the Divestiture Date, and the Gaming Board does not extend the
Divestiture Date as provided for in paragraph 8 of this Agreement, HGHC will
immediately place its ownership interest in Empress in a trust to be sold by a
trustee to be appointed and approved solely by the Gaming Board (the "Trustee").
The Gaming Board shall choose as Trustee a person who is either a partner in a
"Big Six" accounting firm and has experience in the gaming industry or who is a
managing director in a nationally recognized investment banking firm and who has
experience in the gaming industry. The Trustee appointed by and approved by the
Gaming Board shall be invested with the sole authority to execute the sale of
HGHC's ownership interest in Empress. The Trustee shall raise to the then
current Board of Directors of Empress any concerns he/she may have regarding the
operation of Empress that may affect the sale of HGHC's ownership interest in
Empress. If within one (1) year of the appointment of the Trustee, the Trustee
is unable to enter into an enforceable and definitive agreement to sell HGHC's
ownership interest n Empress, the Gaming Board may, at its sole and absolute
discretion, recover and otherwise dispose of the license previously issued to
Empress in accordance with the Act and the Board rules.

        10. If a New Empress Board is established pursuant to this Agreement,
said New Empress Board shall remain in place and continue to discharge its
duties and responsibilities until the closing of the sale of HGHC's ownership
interest in Empress or until recovery of the license by the Gaming Board as
provided for herein. Notwithstanding the foregoing sentence of this paragraph,
the Gaming Board retains its authority to seek the removal of any person from
the New Empress Board if the Gaming Board determines that such person(s) is no
longer suitable under the Act and/or the Board Rules.

        11. On or before one hundred and forty-five (145) days from the date of
this Agreement, Empress shall deposit in escrow the amount of two million
dollars ($2,000,000). If Empress has not timely produced a sales agreement
within one hundred fifty (150) days, as required by paragraph 2 of this
Agreement, that sum shall be forfeited to the Gaming Board as Liquidated Damages
and Empress shall pay an additional sum of ten thousand dollars ($10,000) per
day thereafter, unless and until said sales agreement has been produced or
January 31, 2002, which ever is first to occur.

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        12. HGHC, Empress and Binion hereby release the Gaming Board, each of
its Members, its staff and its attorneys, agents and representatives from any
and all legal, equitable, or other claims or causes of action which are now
known or unknown as of the Effective Date including, but not limited to, claims
arising out of the Gaming Board's approval of transfer of ownership on November
30, 1999, its Initial Finding or its Notice of Denial. The Gaming Board hereby
releases HGHC, Empress and Binion, their attorneys, agents and representatives
from any and all legal, equitable or other claims or causes of action that are
based solely on facts of which the Gaming Board had actual knowledge as of July
19, 2000, when the Notice of Denial was issued.

        13. Notwithstanding the foregoing, the Gaming Board, HGHC, Empress and
Binion reserve their rights to file an action or take other steps to enforce the
terms of this Agreement, including bringing any disputes under this Agreement
before the Administrative Law Judge, until his jurisdiction is ended pursuant to
paragraph 16 of this Agreement.

        14. If HGHC, Empress, and Binion comply with the terms of this Agreement
and the Gaming Board approves the sale of HGHC's ownership interest in Empress,
said approval by the Gaming Board shall include an express order that the
Initial Finding has no effect upon Empress' purchaser. Empress or Empress'
successor in interest, pursuant to Board Rule 3000.237, shall consent to and
receive a renewed license of one (1) year.

        15. Within seven (7) days of the Effective Date of this Agreement, the
Gaming Board and Empress shall file an agreed motion asking the Administrative
Law Judge to stay the Hearing for a period of one hundred fifty (150) days from
the Effective Date. At the conclusion of the 150 day period contemplated herein,
Empress and the Board will inform the Administrative Law Judge whether HGHC,
Empress and Binion have abided to date with their respective obligations under
this Agreement. If HGHC, Empress and Binion have complied to date with their
respective obligations under this Agreement, Empress and the Board shall ask the
Administrative Law Judge to continue the stay of the Hearing pending further
action by either Empress or the Board. If either HGHC, Empress or Binion fail to
comply with their respective obligations under this Agreement, the Gaming Board
may, in addition to any other remedies available to it under applicable law,
seek the entry by the Administrative Law Judge of an order dismissing Empress's
Request For Hearing with prejudice. If, at an evidentiary hearing before the
Administrative Law Judge, the Gaming Board demonstrates by clear and convincing
evidence that, as a result of acts within HGHC, Empress and/or Binion's control,
HGHC, Empress or Binion failed to comply with any material obligation under this
Agreement including, but not limited to, (a) the obligation of HGHC and Binion
to submit within ninety (90) days of the Effective Date the names of at least
two (2) proposed Non-Independent Directors and the names of at least three (3)
proposed Independent Directors for the Gaming Board's approval, (b) each of the
obligations of Binion under paragraph 4 of this Agreement, (c) the obligation of
HGHC to move its corporate offices out of the Empress premises within 120 days
of the Effective Date pursuant to paragraph 4 of this Agreement, (d) the
obligation of HGHC to cause Empress to establish the New Empress Board pursuant
to paragraph 7 of this Agreement, (e) the obligation of HGHC to divest its
ownership interest in Empress pursuant to paragraphs 8 and 9 of this Agreement
and (f) the obligation of Empress to pay the sums set forth in paragraph 11 of
this Agreement, HGHC, Empress and Binion hereby stipulate to, consent to and
agree that the Administrative Law Judge may then dismiss Empress's Request For
Hearing and the Gaming Board may enter a Final Order of Denial of Renewal
without further hearing.

                                       5

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        16. Providing that Empress and Binion comply with their respective
obligations under this Agreement, Empress, upon the closing of the sale of
HGHC's ownership interest in Empress, as contemplated herein, shall seek leave
from the Administrative Law Judge to withdraw the Request For Hearing it
previously submitted. Upon Empress's withdrawal of its Request For Hearing,
Empress and the Gaming Board shall file an agreed motion asking the
Administrative Law Judge to recommend dismissal of the Hearing pending before
him with prejudice and with each party bearing its own costs. Within fourteen
(14) days of the termination of the Hearing, the Gaming Board shall acknowledge
by an of-record resolution that the Gaming Board accepts Empress's withdrawal of
its Request For Hearing and that, as a result of the sale of HGHC's ownership
interest in Empress, the Notice of Denial previously issued by the Gaming Board
has become moot and is without legal or practical effect for licensing in
Illinois.

        17. The parties hereto represent and warrant to, and agree with the
others as follows:

            (a) Each party has received independent legal advice from its own
                attorneys with respect to the advisability of making the
                settlement provided for herein, and with respect to the
                advisability of executing this Agreement. Each party has
                contributed to the drafting of this Agreement and, therefore,
                the Agreement shall not be construed against either party.

            (b) No party (nor any agent, associate, representative, or attorney
                of or for any other party), has made any statement or
                representation to any other party regarding any fact relied upon
                by the other party in entering into this Agreement, and no party
                hereto relies upon any statement, representation or promise of
                any other party (or of any agent, associate, representative or
                attorney of or for any other party), in executing this
                Agreement, or in making the settlement provided for herein,
                except as expressly stated in this Agreement.

            (c) Each party, and its attorney, has made such investigation of the
                facts pertaining to this settlement and this Agreement, and has
                all information with respect to all the matters pertaining
                thereto, as he, she or it deems necessary to make a final and
                binding decision to execute this Agreement and abide by the
                provisions herein.

            (d) This Agreement has been carefully read by all parties, the
                contents hereof are known and understood by all parties, and it
                is signed freely by each person or entity executing this
                Agreement, and each of the persons executing this Agreement on
                behalf of himself and/or the entity is empowered to do so.

            (e) The terms of this Agreement are contractual, not a mere recital,
                and are the result of negotiation among all the parties.

            (f) Each party hereto relies on the finality of this Agreement as a
                material factor inducing that party's execution of this
                Agreement, and the obligations assumed by this Agreement.

                                       6

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        18. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their successors and assigns. No person or entity is, or is
intended to be, a third-party beneficiary of this Agreement.

        19. This Agreement shall be deemed to have been executed and delivered
within the State of Illinois, and the laws of the State of Illinois shall apply
to the interpretation and enforcement of this Agreement without reference to the
choice of law rules thereof.

        20. Each signatory to this Agreement hereby represents and warrants that
he/she is authorized to act on behalf of the party or parties he/she purports to
represent or upon whose behalf he/she purports to act.

        21. In any action to enforce this Agreement, the prevailing party in any
proceeding shall be entitled to an award of interest, reasonable attorneys' fees
and costs in connection with those proceedings.

        22. This Agreement may be signed in counterparts and delivered by
facsimile, with each executed counterpart in a facsimile standing as an
original.

                                       7

<PAGE>   8

ILLINOIS GAMING BOARD                          HORSESHOE GAMING HOLDING CORP.

/s/ Sergio Acosta                              /s/ Jack B. Binion
---------------------------------------        ---------------------------------
By: Sergio Acosta                              By: Jack Binion
Its: Administrator                             Its: President

Dated: January 31, 2001                        Dated: January 30, 2001

EMPRESS CASINO                                 /s/ W. J. Kunkle
JOLIET CORPORATION                             ---------------------------------
                                               By: William J. Kunkle
                                               Its: Attorney

                                               Dated: January 30, 2001

/s/ Roger P. Wagner                            JACK BINION
---------------------------------------
By: Roger Wagner
Its: President

Dated: January 30, 2001                        /s/ Jack B. Binion
                                               ---------------------------------
                                               By: Jack Binion

/s/ W. J. Kunkle                               Dated: January 30, 2001
---------------------------------------
By: William J. Kunkle
Its: Attorney

Dated: January 30, 2001                        /s/ W. J. Kunkle
                                               ---------------------------------
                                               By: William J. Kunkle
                                               Its: Attorney

                                               Dated: January 30, 2001

                                       8

<PAGE>   9

                                    EXHIBIT A

                           MEMORANDUM OF UNDERSTANDING

        The Illinois Gaming Board ("Gaming Board"), on the one hand, and
Horseshoe Gaming Holding Corp. ("HGHC"), Empress Casino Joliet Corporation
("Empress") and Jack Binion ("Binion"), on the other hand, enter into this
Memorandum Of Understanding regarding the responsibilities and duties of the new
Board of Directors of Empress (the "New Empress Board"). This Memorandum shall
remain in effect as long as the New Empress Board established under the Empress
Casino Joliet Settlement Agreement (the "Agreement"), which is expressly
incorporated in this Memorandum of Understanding by reference herein, remains in
place.

        1. The New Empress Board established pursuant to the terms of the
Agreement shall immediately assume and maintain complete and exclusive control
of the management and operation of Empress Joliet for as long as said New
Empress Board remains in place. The New Empress Board, at its sole and absolute
discretion, may retain all or a portion of the Current Management, as that term
is defined in the Agreement. Under no circumstances, however, shall the New
Empress Board seek to enlist the services of Binion or otherwise consult Binion
with regard to the management and operation of the Empress Casino Joliet.

        2. The New Empress Board will establish Audit, Compliance and
Transaction Committees, made up of Board Members, which will oversee and assure
the integrity of Empress's financial statements, regulatory compliance and the
fairness of any transaction between Empress and HGHC or between Empress and any
third-party contractor.

            A.  Audit Committee. The Audit Committee will have the oversight
                responsibility to ensure the integrity of Empress's financial
                statements. The majority of the Audit Committee will be composed
                of Independent Directors, as that term is defined in the
                Agreement. The Audit Committee will review the accounting
                policies of Empress and reports from Empress's outside auditors.
                It will approve the engagement of Empress's outside auditors.

            B.  Compliance Committee. The Compliance Committee will have the
                responsibility for adopting a plan designed to ensure Empress's
                compliance with the Riverboat Gambling Act and the Adopted Rules
                of the Illinois Gaming Board and for supervising the personnel
                charged with implementing the compliance plan. The majority of
                the Compliance Committee will be composed of Independent
                Directors, as that term is defined in the Agreement.

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<PAGE>   10

            C.  Transactions Committee. The majority of the Transactions
                Committee will be composed of Independent Directors, as that
                term is defined in the Agreement. The Transactions Committee
                shall be responsible for reviewing and approving the terms of
                any proposed contract, agreement or transaction, whether oral or
                written, between Empress or HGHC, on the one hand, and any
                person or entity, on the other hand, relating to the Empress
                Joliet Casino. The entire Empress Board shall approve or
                disapprove, as the case may be, any and all transactions to be
                entered into involving payments by Empress in excess of $25,000,
                individually or in the aggregate, and all professional
                contracts.

        3. The New Empress Board will have the sole and absolute authority to
hire, fire and determine the compensation of the senior executives and officers
of Empress, subject to the terms of any existing employment agreements between
Empress and such senior executives and officers.

        4. The New Empress Board may use Empress's cash flow to service existing
indebtedness of HGHC including any refinancing of that indebtedness. The New
Empress Board will not authorize Empress to incur additional indebtedness except
such indebtedness as the New Empress Board determines is needed in connection
with Empress's business in Illinois.

        5. The New Empress Board may not distribute more than 45% of Empress's
taxable income to its corporate parent in a tax distribution.

        6. The New Empress Board will not permit any officer or employee of
Empress to also be an officer or employee of HGHC.

                                       10

<PAGE>   11

ILLINOIS GAMING BOARD                          HORSESHOE GAMING HOLDING CORP.

/s/ Sergio Acosta                              /s/ Jack B. Binion
----------------------------------------       ---------------------------------
By: Sergio Acosta                              By: Jack Binion
Its: Administrator                             Its: President

Dated: January 31, 2001                        Dated: January 30, 2001

EMPRESS CASINO                                 /s/ W. J. Kunkle
JOLIET CORPORATION                             ---------------------------------
                                               By: William J. Kunkle
                                               Its: Attorney

                                               Dated: January 30, 2001

/s/ Roger P. Wagner                            JACK BINION
------------------------------------
By: Roger Wagner
Its: President

Dated: January 30, 2001                        /s/ Jack B. Binion
                                               ---------------------------------
                                               By: Jack Binion

/s/ W. J. Kunkle                               Dated: January 30, 2001
------------------------------------
By: William J. Kunkle
Its: Attorney

Dated: January 30, 2001                        /s/ W. J. Kunkle
                                               ---------------------------------
                                               By: William J. Kunkle
                                               Its: Attorney

                                               Dated: January 30, 2001

                                       11<PAGE>   1

                                                                    EXHIBIT 10.9

                             SIMPLEX SOLUTIONS, INC.

                                 1995 STOCK PLAN

                       RESTRICTED STOCK PURCHASE AGREEMENT

        This Restricted Stock Purchase Agreement (the "Agreement") is made as of
February 12, 1998, by and between Simplex Solutions, Inc., a Delaware
corporation (the "Company"), and Aki Fujimura ("Purchaser") pursuant to the
Company's 1995 Stock Plan. To the extent any capitalized terms used in this
Agreement are not defined, they shall have the meaning ascribed to them in the
1995 Stock Plan.

        1. SALE OF STOCK. Subject to the terms and conditions of this Agreement,
on the Purchase Date (as defined below) the Company will issue and sell to
Purchaser, and Purchaser agrees to purchase from the Company, 750,000 shares of
the Company's Common Stock (the "Shares") at a purchase price of $0.68 per Share
for a total purchase price of $510,000. The per share purchase price of the
Shares shall be not less than 85% of the Fair Market Value of the Shares as of
the date of the offer of such Shares to Purchaser, or, in the case of any person
owning stock representing more than 10% of the total combined voting power of
all classes of stock of the Company (or any affiliated company), the per share
purchase price shall be not less than 100% of the Fair Market Value of the
Shares as of such date. The term "Shares" refers to the purchased Shares and all
securities received in replacement of or in connection with the Shares pursuant
to stock dividends or splits, all securities received in replacement of the
Shares in a recapitalization, merger, reorganization, exchange or the like, and
all new, substituted or additional securities or other properties to which
Purchaser is entitled by reason of Purchaser's ownership of the Shares.

        2. PURCHASE AND SALE OF THE SHARES. The purchase and sale of the Shares
under this Agreement shall occur at the principal office of the Company
simultaneously with the execution of this Agreement by the parties, or on such
other date as the Company and Purchaser shall agree (the "Purchase Date"). On
the Purchase Date, the Company will deliver to Purchaser a certificate
representing the Shares to be purchased by Purchaser (which shall be issued in
Purchaser's name) against payment of the purchase price therefor by Purchaser by
(a) check made payable to the Company, (b) cancellation of indebtedness of the
Company to Purchaser, or (c) by a combination of the foregoing.

        3. LIMITATIONS ON TRANSFER. In addition to any other limitation on
transfer created by applicable securities laws, Purchaser shall not assign,
encumber or dispose of any interest in the Shares while the Shares are subject
to the Company's Repurchase Option (as defined below). After any Shares have
been released from such Repurchase Option, Purchaser shall not assign, encumber
or dispose of any interest in such Shares except in compliance with the
provisions below and applicable securities laws.

<PAGE>   2

                (a) REPURCHASE OPTION.

                        (i) In the event of the voluntary or involuntary
termination of Purchaser's employment or consulting relationship with the
Company for any reason (including death or disability), with or without cause,
the Company shall upon the date of such termination (the "Termination Date")
have an irrevocable, exclusive option (the "Repurchase Option") for a period of
60 days from such date to repurchase all or any portion of the Shares held by
Purchaser as of the Termination Date which have not yet been released from the
Company's Repurchase Option at the original purchase price per Share specified
in Section 1 (adjusted for any stock splits, stock dividends and the like).

                        (ii) The Repurchase Option shall be exercised by the
Company by written notice to Purchaser or Purchaser's executor and, at the
Company's option, (A) by delivery to Purchaser or Purchaser's executor with such
notice of a check in the amount of the purchase price for the Shares being
purchased, or (B) in the event Purchaser is indebted to the Company, by
cancellation by the Company of an amount of such indebtedness equal to the
purchase price for the Shares being repurchased, or (C) by a combination of (A)
and (B) so that the combined payment and cancellation of indebtedness equals
such purchase price. Upon delivery of such notice and payment of the purchase
price in any of the ways described above, the Company shall become the legal and
beneficial owner of the Shares being repurchased and all rights and interest
therein or related thereto, and the Company shall have the right to transfer to
its own name the number of Shares being repurchased by the Company, without
further action by Purchaser.

                        (iii) 100% of the Shares shall initially be subject to
the Repurchase Option. One-fourth (1/4th) of the total number of Shares shall be
released from the Repurchase Option on the twelve-month anniversary of the
Vesting Commencement Date (as set forth on the signature page of this
Agreement), and an additional 1/48th of the total number of Shares shall be
released from the Repurchase Option each month thereafter on the Monthly Vesting
Date (as set forth on the signature page of this Agreement), until all Shares
are released from the Repurchase Option. Fractional shares shall be rounded to
the nearest whole share.

                (b) RIGHT OF FIRST REFUSAL. Before any Shares held by Purchaser
or any transferee of Purchaser (either being sometimes referred to herein as the
"Holder") may be sold or otherwise transferred (including transfer by gift or
operation of law), the Company or its assignee(s) shall have a right of first
refusal to purchase the Shares on the terms and conditions set forth in this
Section 3(b) (the "Right of First Refusal").

                        (i) NOTICE OF PROPOSED TRANSFER. The Holder of the
Shares shall deliver to the Company a written notice (the "Notice") stating: (A)
the Holder's bona fide intention to sell or otherwise transfer such Shares; (B)
the name of each proposed purchaser or other transferee ("Proposed Transferee");
(C) the number of Shares to be transferred to each Proposed Transferee; and (D)
the terms and conditions of each proposed sale or transfer. The Holder shall
offer the Shares at the same price (the "Offered Price") and upon the same terms
(or terms as similar as reasonably possible) to the Company or its assignee(s).

                                      -2-
<PAGE>   3

                        (ii) EXERCISE OF RIGHT OF FIRST REFUSAL. At any time
within 30 after receipt of the Notice, the Company and/or its assignee(s) may,
by giving written notice to the Holder, elect to purchase all, but not less than
all, of the Shares proposed to be transferred to any one or more of the Proposed
Transferees, at the purchase price determined in accordance with subsection
(iii) below.

                        (iii) PURCHASE PRICE. The purchase price ("Purchase
Price") for the Shares purchased by the Company or its assignees) under this
Section 3(b) shall be the Offered Price. If the Offered Price includes
consideration other than cash, the cash equivalent value of the non-cash
consideration shall be determined by the Board of Directors of the Company in
good faith.

                        (iv) PAYMENT. Payment of the Purchase Price shall be
made, at the option of the Company or its assignee(s), in cash (by check), by
cancellation of all or a portion of any outstanding indebtedness of the Holder
to the Company (or, in the case of repurchase by an assignee, to the assignee),
or by any combination thereof within 30 days after receipt of the Notice or in
the manner and at the times set forth in the Notice.

                        (v) HOLDER'S RIGHT TO TRANSFER. If all of the Shares
proposed in the Notice to be transferred to a given Proposed Transferee are not
purchased by the Company and/or its assignee(s) as provided in this Section
3(b), then the Holder may sell or otherwise transfer such Shares to that
Proposed Transferee at the Offered Price or at a higher price, provided that
such sale or other transfer is consummated within 60 days after the date of the
Notice and provided further that any such sale or other transfer is effected in
accordance with any applicable securities laws and the Proposed Transferee
agrees in writing that the provisions of this Section 3 shall continue to apply
to the Shares in the hands of such Proposed Transferee. If the Shares described
in the Notice are not transferred to the Proposed Transferee within such period,
or if the Holder proposes to change the price or other terms to make them more
favorable to the Proposed Transferee, a new Notice shall be given to the
Company, and the Company and/or its assignees shall again be offered the Right
of First Refusal before any Shares held by the Holder may be sold or otherwise
transferred.

                        (vi) EXCEPTION FOR CERTAIN FAMILY TRANSFERS. Anything to
the contrary contained in this Section 3(b) notwithstanding, the transfer of any
or all of the Shares during Purchaser's lifetime or on Purchaser's death by will
or intestacy to Purchaser's Immediate Family (as defined below) or a trust for
the benefit of Purchaser's Immediate Family shall be exempt from the provisions
of this Section 3(b). "Immediate Family" as used herein shall mean spouse,
lineal descendant or antecedent, father, mother, brother or sister. In such
case, the transferee or other recipient shall receive and hold the Shares so
transferred subject to the provisions of this Section, and there shall be no
further transfer of such Shares except in accordance with the terms of this
Section 3.

                (c) INVOLUNTARY TRANSFER.

                        (i) COMPANY'S RIGHT TO PURCHASE UPON INVOLUNTARY
TRANSFER. In the event, at any time after the date of this Agreement, of any
transfer by operation of law or

                                      -3-
<PAGE>   4

other involuntary transfer (including divorce or death, but excluding, in the
event of death, a transfer to Immediate Family as set forth in Section 3(b)(vi)
above) of all or a portion of the Shares by the record holder thereof, the
Company shall have the right to purchase all of the Shares transferred at the
greater of the purchase price paid by Purchaser pursuant to this Agreement or
the Fair Market Value of the Shares on the date of transfer. Upon such a
transfer, the person acquiring the Shares shall promptly notify the Secretary of
the Company of such transfer. The right to purchase such Shares shall be
provided to the Company for a period of 30 days following receipt by the Company
of written notice by the person acquiring the Shares.

                        (ii) PRICE FOR INVOLUNTARY TRANSFER. With respect to any
stock to be transferred pursuant to Section 3(c)(i), the price per Share shall
be a price set by the Board of Directors of the Company that will reflect the
current value of the stock in terms of present earnings and future prospects of
the Company. The Company shall notify Purchaser or his or her executor of the
price so determined within 30 days after receipt by it of written notice of the
transfer or proposed transfer of Shares. However, if Purchaser does not agree
with the valuation as determined by the Board of Directors of the Company,
Purchaser shall be entitled to have the valuation determined by an independent
appraiser to be mutually agreed upon by the Company and Purchaser and whose fees
shall be borne equally by the Company and Purchaser.

                (d) ASSIGNMENT. The right of the Company to purchase any part of
the Shares may be assigned in whole or in part to any stockholder or
stockholders of the Company or other persons or organizations; provided,
however, that an assignee, other than a corporation that is the Parent or a 100%
owned Subsidiary of the Company, must pay the Company, upon assignment of such
right, cash equal to the difference between the original purchase price and Fair
Market Value, if the original purchase price is less than the Fair Market Value
of the Shares subject to the assignment.

                (e) RESTRICTIONS BINDING ON TRANSFEREES. All transferees of
Shares or any interest therein will receive and hold such Shares or interest
subject to the provisions of this Agreement, including, insofar as applicable,
the Repurchase Option. Any sale or transfer of the Shares shall be void unless
the provisions of this Agreement are satisfied.

                (f) TERMINATION OF RIGHTS. The Right of First Refusal and the
Company's right to repurchase the Shares in the event of an involuntary transfer
pursuant to Section 3(c) above shall terminate upon the first sale of Common
Stock of the Company to the general public pursuant to a registration statement
filed with and declared effective by the Securities and Exchange Commission
under the Securities Act of 1933, as amended (the "Securities Act"). Upon
termination of the Right of First Refusal and the expiration or exercise of the
Repurchase Option, a new certificate or certificates representing the Shares not
repurchased shall be issued, on request, without the legend referred to in
Section 6(a)(ii) below and delivered to Purchaser.

        4. ESCROW OF UNVESTED SHARES. For purposes of facilitating the
enforcement of the provisions of Section 3 above, Purchaser agrees, immediately
upon receipt of the certificates) for the Shares subject to the Repurchase
Option, to deliver such certificate(s), together with an Assignment Separate
from Certificate in the form attached to this Agreement as Exhibit A

                                      -4-
<PAGE>   5

executed by Purchaser and by Purchaser's spouse (if required for transfer), in
blank, to the Secretary of the Company, or the Secretary's designee, to hold
such certificates) and Assignment Separate from Certificate in escrow and to
take all such actions and to effectuate all such transfers and/or releases as
are in accordance with the terms of this Agreement. Purchaser hereby
acknowledges that the Secretary of the Company, or the Secretary's designee, is
so appointed as the escrow holder with the foregoing authorities as a material
inducement to make this Agreement and that said appointment is coupled with an
interest and is accordingly irrevocable. Purchaser agrees that said escrow
holder shall not be liable to any party hereof (or to any other party). The
escrow holder may rely upon any letter, notice or other document executed by any
signature purported to be genuine and may resign at any time. Purchaser agrees
that if the Secretary of the Company, or the Secretary's designee, resigns as
escrow holder for any or no reason, the Board of Directors of the Company shall
have the power to appoint a successor to serve as escrow holder pursuant to the
terms of this Agreement.

        5. INVESTMENT AND TAXATION REPRESENTATIONS. In connection with the
purchase of the Shares, Purchaser represents to the Company the following:

                (a) Purchaser is aware of the Company's business affairs and
financial condition and has acquired sufficient information about the Company to
reach an informed and knowledgeable decision to acquire the Shares. Purchaser is
purchasing the Shares for investment for his or her own account only and not
with a view to, or for resale in connection with, any "distribution" thereof
within the meaning of the Securities Act.

                (b) Purchaser understands that the Shares have not been
registered under the Securities Act by reason of a specific exemption therefrom,
which exemption depends upon, among other things, the bona fide nature of
Purchaser's investment intent as expressed herein.

                (c) Purchaser understands that the Shares are "restricted
securities" under applicable U.S. federal and state securities laws and that,
pursuant to these laws, Purchaser must hold the Shares indefinitely unless they
are registered with the Securities and Exchange Commission and qualified by
state authorities, or an exemption from such registration and qualification
requirements is available. Purchaser acknowledges that the Company has no
obligation to register or qualify the Shares for resale. Purchaser further
acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the Shares, and
requirements relating to the Company which are outside of Purchaser's control,
and which the Company is under no obligation and may not be able to satisfy.

                (d) Purchaser understands that Purchaser may suffer adverse tax
consequences as a result of Purchaser's purchase or disposition of the Shares.
Purchaser represents that Purchaser has consulted any tax consultants Purchaser
deems advisable in connection the purchase or disposition of the Shares and that
Purchaser is not relying on the Company for any tax advice.

                                      -5-
<PAGE>   6

        6. RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS.

                (a) LEGENDS. The certificate or certificates representing the
Shares shall bear the following legends (as well as any legends required by
applicable state and federal corporate and securities laws):

                        (i)     THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE
                                NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
                                1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND
                                NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE
                                SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR
                                DISTRIBUTION MAY BE EFFECTED WITHOUT AN
                                EFFECTIVE REGISTRATION STATEMENT RELATED THERETO
                                OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY
                                TO THE COMPANY THAT SUCH REGISTRATION IS NOT
                                REQUIRED UNDER THE SECURITIES ACT OF 1933.

                        (ii)    THE SHARES REPRESENTED BY THIS CERTIFICATE MAY
                                BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS
                                OF AN AGREEMENT BETWEEN THE COMPANY AND THE
                                STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE
                                SECRETARY OF THE COMPANY.

                (b) STOP-TRANSFER NOTICES. Purchaser agrees that, in order to
ensure compliance with the restrictions referred to herein, the Company may
issue appropriate "stop transfer" instructions to its transfer agent, if any,
and that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.

                (c) REFUSAL TO TRANSFER. The Company shall not be required (i)
to transfer on its books any Shares that have been sold or otherwise transferred
in violation of any of the provisions of this Agreement or (ii) to treat as
owner of such Shares or to accord the right to vote or pay dividends to any
purchaser or other transferee to whom such Shares shall have been so
transferred.

        7. NO EMPLOYMENT RIGHTS. Nothing in this Agreement shall affect in any
manner whatsoever the right or power of the Company, or a Parent or Subsidiary
of the Company, to terminate Purchaser's employment or consulting relationship,
for any reason, with or without cause.

        8. SECTION 83(b) ELECTION. Purchaser understands that Section 83(a) of
the internal Revenue Code of 1986, as amended (the "Code"), taxes as ordinary
income the difference between the amount paid for the Shares and the Fair Market
Value of the Shares as of the date any restrictions on the Shares lapse. In this
context, "restriction" means the right of the

                                      -6-
<PAGE>   7

Company to buy back the Shares pursuant to the Repurchase Option set forth in
Section 3(a) of this Agreement. Purchaser understands that Purchaser may elect
to be taxed at the time the Shares are purchased, rather than when and as the
Repurchase Option expires, by filing an election under Section 83(b) (an "83(b)
Election") of the Code with the Internal Revenue Service within 30 days from the
date of purchase. Even if the Fair Market Value of the Shares at the time of the
execution of this Agreement equals the amount paid for the Shares, the election
must be made to avoid income under Section 83(a) in the future. Purchaser
understands that failure to file such an election in a timely manner may result
in adverse tax consequences for Purchaser. Purchaser further understands that an
additional copy of such election form should be filed with his or her federal
income tax return for the calendar year in which the date of this Agreement
falls. Purchaser acknowledges that the foregoing is only a summary of the effect
of United States federal income taxation with respect to purchase of the Shares
hereunder, and does not purport to be complete. Purchaser further acknowledges
that the Company has directed Purchaser to seek independent advice regarding the
applicable provisions of the Code, the income tax laws of any municipality,
state or foreign country in which Purchaser may reside, and the tax consequences
of Purchaser's death.

                Purchaser agrees that he will execute and deliver to the Company
with this executed Agreement a copy of the Acknowledgment and Statement of
Decision Regarding Section 83(b) Election (the "Acknowledgment"), attached
hereto as Exhibit B. Purchaser further agrees that Purchaser will execute and
submit with the Acknowledgment a copy of the 83(b) Election, attached hereto as
Exhibit C, if Purchaser has indicated in the Acknowledgment his or her decision
to make such an election.

        9. MARKET STANDOFF AGREEMENT. In connection with the initial public
offering of the Company's securities and upon request of the Company or the
underwriters managing such underwritten offering of the Company's securities,
Purchaser agrees not to sell, make any short sale of, loan, grant any option for
the purchase of, or otherwise dispose of any Shares (other than those included
in the registration) without the prior written consent of the Company or such
underwriters, as the case may be, for such period of time (not to exceed 180
days) from the effective date of such registration as may be requested by the
Company or such managing underwriters and to execute an agreement reflecting the
foregoing as may be requested by the underwriters at the time of the Company's
initial public offering.

        10. MISCELLANEOUS.

                (a) GOVERNING LAW. This Agreement and all acts and transactions
pursuant hereto and the rights and obligations of the parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of
California, without giving effect to principles of conflicts of law.

                (b) ENTIRE AGREEMENT; ENFORCEMENT OF RIGHTS. This Agreement sets
forth the entire agreement and understanding of the parties relating to the
subject matter herein and merges all prior discussions between them. No
modification of or amendment to this Agreement, nor any waiver of any rights
under this Agreement, shall be effective unless in

                                      -7-
<PAGE>   8

writing signed by the parties to this Agreement. The failure by either party to
enforce any rights under this Agreement shall not be construed as a waiver of
any rights of such party.

                (c) SEVERABILITY. If one or more provisions of this Agreement
are held to be unenforceable under applicable law, the parties agree to
renegotiate such provision in good faith. In the event that the parties cannot
reach a mutually agreeable and enforceable replacement for such provision, then
(i) such provision shall be excluded from this Agreement, (ii) the balance of
the Agreement shall be interpreted as if such provision were so excluded and
(iii) the balance of the Agreement shall be enforceable in accordance with its
terms.

                (d) CONSTRUCTION. This Agreement is the result of negotiations
between and has been reviewed by each of the parties hereto and their respective
counsel, if any; accordingly, this Agreement shall be deemed to be the product
of all of the parties hereto, and no ambiguity shall be construed in favor of or
against any one of the parties hereto.

                (e) NOTICES. Any notice required or permitted by this Agreement
shall be in writing and shall be deemed sufficient when delivered personally or
sent by telegram or fax or 48 hours after being deposited in the U.S. mail, as
certified or registered mail, with postage prepaid, and addressed to the party
to be notified at such party's address as set forth below or as subsequently
modified by written notice.

                (f) COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

                (g) SUCCESSORS AND ASSIGNS. The rights and benefits of this
Agreement shall inure to the benefit of, and be enforceable by the Company's
successors and assigns. The rights and obligations of Purchaser under this
Agreement may only be assigned with the prior written consent of the Company.

                (h) CALIFORNIA CORPORATE SECURITIES LAW. THE SALE OF THE
SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH
THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF
THE SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION
THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES
IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA
CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY
CONDITIONED UPON THE QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

                            [Signature Page Follows]

                                      -8-
<PAGE>   9

        The parties have executed this Agreement as of the date first set forth
above.

                                       SIMPLEX SOLUTIONS, INC.

                                       By: /s/ [ILLEGIBLE]
                                           -------------------------------------
                                       Title: President & CEO
                                              ----------------------------------

                                       Address:
                                       521 Almanor Avenue
                                       Sunnyvale, CA 94086-3512

                                       PURCHASER:

                                       AKI FUJIMURA

                                       /s/ AKI FUJIMURA
                                       -----------------------------------------
                                       (Signature)

                                       Address:
                                       15220 Sobey Rd
                                       Saratoya, CA, 95070

Vesting Commencement
Date: August 13, 1997

Monthly Vesting
Date: the 13th day of each month

I,  N/A  , spouse of Aki Fujimura, have read and hereby approve the foregoing
Agreement. In consideration of the Company's granting my spouse the right to
purchase the Shares set forth in the Agreement, I hereby agree to be irrevocably
bound by the Agreement and further agree that any community property or similar
interest that I may have in the Shares shall be similarly bound by the
Agreement. I hereby appoint my spouse as my attorney-in-fact with respect to any
amendment or exercise of any rights under the Agreement.

                                       -----------------------------------------
                                       Spouse of Aki Fujimura

                                      -9-
<PAGE>   10

                                    EXHIBIT A

                      ASSIGNMENT SEPARATE FROM CERTIFICATE

     FOR VALUE RECEIVED and pursuant to that certain Restricted Stock Purchase
Agreement between the undersigned ("Purchaser") and Simplex Solutions, Inc. (the
"Company") dated _____________, 1998 (the "Agreement"), Purchaser hereby sells,
assigns and transfers unto the Company _______________(__________) shares of the
Common Stock of the Company, standing in Purchaser's name on the books of the
Company and represented by Certificate No.______, and does hereby irrevocably
constitute and appoint_____________________________________________ to transfer
said stock on the books of the Company with full power of substitution in the
premises. THIS ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT AND
THE EXHIBITS THERETO.

Dated:
       ----------------

                                       Signature:

                                        /s/  AKI FUJIMURA
                                       -----------------------------------------
                                       Aki Fujimura

                                        N/A
                                       -----------------------------------------
                                       Spouse of Aki Fujimura (if applicable)

Instruction: Please do not fill in any blanks other than the signature line. The
purpose of this assignment is to enable the Company to exercise its repurchase
option set forth in the Agreement without requiring additional signatures on the
part of Purchaser.

<PAGE>   11

                                     RECEIPT

Simplex Solutions, Inc. hereby acknowledges receipt of a check in the amount of
$510,000.00 given by Aki Fujimura as consideration for Certificate No. ___ for
750,000 shares of Common Stock of Simplex Solutions, Inc.

Dated:
      ------------------

                                       Simplex Solutions, Inc.

                                       By: /s/ [ILLEGIBLE]
                                           -------------------------------------
                                       Title: President & CEO
                                              ----------------------------------

<PAGE>   12

                               RECEIPT AND CONSENT

        The undersigned hereby acknowledges receipt of a photocopy of
Certificate No. _____ for 750,000 shares of Common Stock of Simplex Solutions,
Inc. (the "Company").

        The undersigned further acknowledges that the Secretary of the Company,
or his or her designee, is acting as escrow holder pursuant to the Restricted
Stock Purchase Agreement Purchaser has previously entered into with the Company.
As escrow holder, the Secretary of the Company, or his or her designee, holds
the original of the aforementioned certificate issued in the undersigned's name.

Dated:
      ------------------

                                       -----------------------------------------
                                       Aki Fujimura

<PAGE>   13

                          PLEDGE AND SECURITY AGREEMENT

        This Pledge and Security Agreement (the "Agreement") is entered into
this 12th day of February, 1998 by and between Simplex Solutions, Inc., a
Delaware corporation (the "Company") and Aki Fujimura ("Purchaser").

                                    RECITALS

        In connection with Purchaser's purchase of a full recourse, secured
promissory note of even date herewith (the "Note") in the aggregate principal
amount of $509,250.00, the Company requires that such Note be secured by a
pledge of collateral on the terms set forth below. Purchaser and the Company
have agreed that such collateral shall be 750,000 shares of the Company's Common
Stock, par value $0.001 per share (as adjusted for subsequent stock splits,
reverse stock splits and recapitalizations) now or hereafter held by Purchaser
while the Note is outstanding (the "Shares").

                                    AGREEMENT

        In consideration of the Company's acceptance of the Shares as collateral
for the Note, and for other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto agree as follows:

        1. The Note shall become payable in full, except as modified by the
second paragraph of the Note, upon the voluntary or involuntary termination or
cessation of employment of Purchaser with the Company, for any reason, with or
without cause (including death or disability).

        2. Purchaser shall deliver to the Secretary of the Company, or his or
her designee (hereinafter referred to as the "Pledge Holder"), all certificates
representing the Shares, together with an Assignment Separate from Certificate
in the form attached to this Agreement as Attachment A executed by Purchaser and
by Purchaser's spouse (if required for transfer), in blank, for use in
transferring all or a portion of the Shares to the Company if, as and when
required pursuant to this Agreement. In addition, if Purchaser is married,
Purchaser's spouse shall execute the signature page attached to this Agreement.

        3. As security for the payment of the Note and any renewal, extension or
modification of the Note, Purchaser hereby grants to the Company a security
interest in and pledges with and delivers to the Company Purchaser's Shares
(sometimes referred to herein as the "Collateral").

        4. Except as required to enable the Company to exercise its rights as a
secured party, none of the Shares pledged under Section 3 may be sold,
transferred, pledged, hypothecated or otherwise disposed of by Purchaser.

        5. In the event that during the term of the pledge any stock dividend,
reclassification, readjustment or other changes are declared or made in the
capital structure of the Company, all new, substituted and additional shares or
other securities issued by reason

<PAGE>   14

of any such change shall be delivered to and held by the Pledge Holder under the
terms of this Agreement in the same manner as the Shares originally pledged
hereunder. In the event of substitution of such securities, Purchaser, the
Company and Pledge Holder shall cooperate and execute such documents as are
reasonable so as to provide for the substitution of such Collateral and, upon
such substitution, references to "Shares" in this Agreement shall include the
substituted shares of capital stock of the Company held by Purchaser as a result
thereof.

        6. In the event that, during the term of this pledge, subscription
warrants or other rights or options shall be issued in connection with the
pledged Shares, such rights, warrants and options shall be the property of
Purchaser and, if exercised by Purchaser, all new stock or other securities so
acquired by Purchaser as it relates to the pledged Shares then held by Pledge
Holder shall be immediately delivered to Pledge Holder, to be held under the
terms of this Agreement in the same manner as the Shares pledged.

        7. In the event that Purchaser prepays all or a portion of the Note, in
accordance with the provisions thereof, Purchaser intends, unless written notice
to the contrary is delivered to the Pledge Holder, that the Shares represented
by the portion of the Note so repaid, including annual interest thereon, shall
continue to be so held by the Pledge Holder, to serve as independent collateral
for the outstanding portion of the Note for the purpose of commencing the
holding period set forth in Rule 144(d) promulgated under the Securities Act of
1933, as amended (the "Securities Act").

        8. In the event of any foreclosure of the security interest created by
this Agreement, the Company may sell the Shares at a private sale or may
repurchase the Shares itself. The parties agree that, prior to the establishment
of a public market for the Shares of the Company, the securities laws affecting
sale of the Shares make a public sale of the Shares commercially unreasonable.
The parties further agree that the repurchasing of such Shares by the Company,
or by any person to whom the Company may have assigned its rights under this
Agreement, is commercially reasonable if made at a price determined by the Board
of Directors in its discretion, fairly exercised, representing what would be the
Fair Market Value of the Shares reduced by any limitation on transferability,
whether due to the size of the block of shares or the restrictions of applicable
securities laws.

        9. In the event of default in payment when due of any indebtedness under
the Note, the Company may elect then, or at any time thereafter, to exercise all
rights available to a secured party under the California Commercial Code
including the right to sell the Collateral at a private or public sale or
repurchase the Shares as provided above. The proceeds of any sale shall be
applied in the following order:

                (a) To the extent necessary, proceeds shall be used to pay all
reasonable expenses of the Company in enforcing this Agreement and the Note,
including, without limitation, reasonable attorney's fees and legal expenses
incurred by the Company.

                (b) To the extent necessary, proceeds shall be used to satisfy
any remaining indebtedness under Purchaser's Note.

                (c) Any remaining proceeds shall be delivered to Purchaser.

                                      -2-
<PAGE>   15

        10. Upon full payment by Purchaser of all amounts due under the Note,
Pledge Holder shall deliver to Purchaser all Shares in Pledge Holder's
possession belonging to Purchaser, and Pledge Holder shall thereupon be
discharged of all FURTHER OBLIGATIONS UNDER this Agreement; provided, however,
that Pledge Holder shall nevertheless retain the Shares as escrow agent if at
the time of full payment by Purchaser said Shares are still subject to a
Repurchase Option in favor of the Company.

        11. Purchaser and the Company agree that all of the terms of this
Agreement shall be binding on their respective successors and assigns, and that
the term "Purchaser" and the term "Company" as used herein shall be deemed to
include, for all purposes, the respective designees, successors, assigns, heirs,
executors and administrators.

        12. This Agreement shall be interpreted and governed under the laws of
the State of California.

                            [Signature Page Follows]

                                      -3-
<PAGE>   16

        The parties have executed this Pledge and Security Agreement as of the
date first set forth above.

                                       SIMPLEX SOLUTIONS, INC.

                                       By: PENNY HERSCHER
                                           -------------------------------------

                                       Name: PENNY HERSCHER
                                             -----------------------------------
                                             (print)

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

                                       Address:
                                       521 Almanor Avenue
                                       Sunnyvale, CA 94086-3512

                                       PURCHASER:

                                       AKI FUJIMURA

                                       /s/ AKI FUJIMURA
                                       -----------------------------------------
                                       (Signature)

                                        AKI FUJIMURA
                                       -----------------------------------------
                                       (Print Name)

                                       Address:
                                       15220 Sobey Rd
                                       Saratoga, CA, 95070

                                      -4-
<PAGE>   17

                                  ATTACHMENT A

                      ASSIGNMENT SEPARATE FROM CERTIFICATE

        FOR VALUE RECEIVED and pursuant to that certain Pledge and Security
Agreement between the undersigned ("Purchaser") and Simplex Solutions, Inc. (the
"Company") dated __________________, 1998 (the "Agreement"), Purchaser hereby
sells, assigns and transfers unto the Company ________________(_______________ )
shares of the Common Stock of the Company, standing in Purchaser's name on the
books of the Company and represented by Certificate No. ____, and hereby
irrevocably constitutes and appoints ___________________________________ to
transfer said stock on the books of the Company with full power of substitution
in the premises. THIS ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE
AGREEMENT.

Dated:
       -------------

                                       Signature:

                                       /s/ AKI FUJIMURA
                                       -----------------------------------------
                                       Aki Fujimura

                                        N/A
                                       -----------------------------------------
                                       Spouse of Aki Fujimura (if applicable)

Instruction: Please do not fill in any blanks other than the signature line. The
purpose of this assignment is to perfect the security interest of the Company
pursuant to the Agreement.

<PAGE>   18

                             SECURED PROMISSORY NOTE

$509,250.00                                                Sunnyvale, California
                                                               FEBRUARY 12, 1998

        For value received, the undersigned ("Purchaser") promises to pay
Simplex Solutions, Inc., a Delaware corporation (the "Company"), at its
principal office the principal sum of $509,250.00 with interest from the date
hereof at a rate of 6.0% per annum, compounded annually, on the unpaid balance
of such principal sum. Such principal and interest shall be due and payable on
the fourth anniversary of the date hereof, unless forgiven prior thereto by the
Company in accordance with the second paragraph of this promissory note (this
"Note").

        The Company shall forgive up to a total of $375,000 of the outstanding
principal under this Note and such amount shall no longer be payable to the
Company in accordance with the terms set forth in this paragraph. Provided that
Purchaser continues to be employed by the Company on a full-time basis, $93,750
of the outstanding principal indebtedness under this Note shall be forgiven on
the twelve-month anniversary of the Vesting Commencement Date (as set forth
below), and an additional $7,812.50 of the outstanding principal indebtedness
shall be forgiven each month thereafter on the Monthly Vesting Date (as set
forth below), until a total of $375,000 of principal indebtedness shall have
been forgiven under this Note. Such forgiveness of debt shall be reported as
ordinary income to Purchaser by the Company, and shall be subject to applicable
tax withholding by the Company. If Purchaser's employment with the Company is
terminated before the full $375,000 of principal indebtedness is forgiven in
accordance with the terms hereunder, only the amount of principal indebtedness
forgiven in accordance with this paragraph as of the date of Purchaser's
termination of employment shall not be due and payable to the Company by
Purchaser upon Purchaser's termination of employment.

        If Purchaser's employment relationship with the Company is terminated
voluntarily or involuntarily, for any reason, with or without cause (including
death or disability), prior to payment in full of this Note, this Note shall be
immediately due and payable, except as modified by the preceding paragraph of
this Note.

        Principal and interest are payable in lawful money of the United States
of America. AMOUNTS DUE UNDER THIS NOTE MAY BE PREPAID AT ANY TIME WITHOUT
PREMIUM OR PENALTY.

        Should suit be commenced to collect any sums due under this Note, such
sum as the Court may deem reasonable shall be added hereto as attorneys' fees.
The makers and endorsers have severally waived presentment for payment, protest,
notice of protest and notice of nonpayment of this Note.

<PAGE>   19

        This Note, which is full recourse, is secured by a pledge of certain
shares of Common Stock of the Company and is subject to the terms of a Pledge
and Security Agreement between the undersigned and the Company of even date
herewith.

                                       /s/ AKI FUJIMURA
                                       -----------------------------------------
                                       Aki Fujimura

Vesting Commencement
Date: August 13, 1997

Monthly Vesting
Date: the 13th day of each month

ACCEPTED AND AGREED:

Simplex Solutions, Inc.

By:  PENNY HERSCHER
    ------------------------------
Title:   PRESIDENT & CEO
       ------------------------------
Date:  Feb. 12, 1998
      ------------------------------

                                      -2-
<PAGE>   20

                             SIMPLEX SOLUTIONS, INC.

                             SECURED LOAN AGREEMENT

        This Secured Loan Agreement is made February 12, 1998 by and between
Simplex Solutions, Inc., a Delaware corporation (the "Company") and Aki Fujimura
("Borrower").

                                    RECITALS

        Borrower desires to borrow, and the Company desires to lend to Borrower
up to an aggregate of $509,250.00 (the "Borrowed Amount"). The parties desire
that such loan shall be secured by up to an aggregate of 750,000 shares of the
Company's Common Stock (as adjusted for subsequent stock splits, reverse stock
splits and recapitalizations) now or hereafter held by Borrower while any
Borrowed Amount is outstanding (the "Shares") on the terms and conditions
contained herein.

        NOW, THEREFORE, it is agreed as follows:

        1. Agreement to Lend. Subject to the terms and conditions contained
herein and upon execution of this Agreement, the Company agrees to issue to
Borrower a check or other readily available funds in the Borrowed Amount upon
the date of this Agreement.

        2. Promissory Note. In consideration of the Company's delivery of the
Borrowed Amount, Borrower will execute a secured promissory note in the form
attached hereto as Exhibit A (a "Note"), in the principal amount of such
Borrowed Amount and bearing interest at the applicable adjusted federal rate,
compounded annually.

        3. Security Agreement. Borrower will additionally execute the Pledge and
Security Agreement in the form attached hereto as Exhibit B (the "Security
Agreement") as security for Borrower's obligation to repay the Borrowed Amount,
and will deliver, or cause to be delivered, all certificates representing Shares
to the Company or its designee as pledge holder of the Shares, together with
such other documents of assignment and other documents as may be reasonably
requested by the Company. The Shares will be held by the Company or its designee
as pledge holder and shall be released according to the terms of the Security
Agreement.

        4. Successors or Assigns. Borrower and the Company agree that all of the
terms of this Agreement shall be binding on their successors and assigns, and
that the term "Borrower" and the term "Company" as used herein shall be deemed
to include as to each party, for all purposes, the designees, successors,
assigns, heirs, executors and administrators of such party.

        5. Governing Law. This Agreement shall be interpreted and governed under
the laws of the State of California.

<PAGE>   21

        6. Amendment. This Agreement may be amended only by a written instrument
signed by each party hereto.

                            [Signature Page Follows]

                                      -2-
<PAGE>   22

        IN WITNESS WHEREOF, the parties hereto have executed this Secured Loan
Agreement as of the day and year first above written.

        "BORROWER"                     AKI FUJIMURA

                                        /s/ AKI FUJIMURA
                                       -----------------------------------------
                                       (Signature)

                                       Address: 15220 Sobey Rd
                                                --------------------------------
                                       Saratoga CA 95070
                                       -----------------------------------------

         "COMPANY"                     SIMPLEX SOLUTIONS, INC.

                                       By: PENNY HERSCHER
                                           -------------------------------------

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

                                       Address: 521 Almanor Avenue
                                                Sunnyvale, CA 94086-3512

                                      -3-

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