Document:

<PAGE>

                      AMENDED AND RESTATED PROMISSORY NOTE
                      ------------------------------------

$20,088.75                                            September 9, 1999
                                                      Lexington, Massachusetts

                  FOR VALUE RECEIVED, Richard Underwood (the "BORROWER"),
hereby promises to pay to the order of MOLDFLOW CORPORATION (the "COMPANY"),
the principal amount of $20,088.75, together with simple interest from the
date hereof on the unpaid principal balance hereof, which shall accrue at a
rate per annum equal to five and 77/100 percent (5.77%). Accrued interest on
the principal amount hereunder that may be outstanding from time to time
shall be due and payable, at the Borrower's election, (i) quarterly in
arrears beginning June 30, 1998 and on the last business day of each
successive quarter thereafter, or (ii) in full on June 30, 2003 (the
"Maturity Date"). All unpaid principal and interest hereunder shall be due
and payable on June 30, 2003. Interest shall be computed on the basis of a
360-day year and a 30-day month. The unpaid principal balance and all accrued
interest on this Promissory Note at any time shall be determined from the
records of the Company, which shall constitute presumptive evidence of such
amounts.

                  This Promissory Note amends and restates the terms and
conditions of the obligations of the Borrower under the Promissory Note dated
as of July 1, 1998 (the "Original Note") from the Borrower to the Company.
Nothing contained in this Promissory Note shall be deemed to create or
represent the issuance of new indebtedness or the exchange by the Borrower of
the Original Note for a new Promissory Note. The indebtedness set forth in
the Original Note continues in full force and effect in this Promissory Note.
This Promissory Note may be voluntarily prepaid in whole or in part at any
time without premium or penalty, but together with interest on the principal
amount so prepaid accrued to the date of prepayment.

                  Payments of both principal and interest hereon shall be
made in immediately available funds at the office of the Company, at 91
Hartwell Avenue, Lexington, Massachusetts, or at such other place as the
holder hereof shall designate to the Borrower in writing, in lawful money of
the United States of America.

                  Except to the extent otherwise required by the context of
this Promissory Note, the word "Company" wherever used herein shall mean and
include the holder of this Promissory Note originally issued to Moldflow
Corporation.

                  This Promissory Note shall be deemed to be a contract under
the laws of the Commonwealth of Massachusetts, and for all purposes shall be
governed by the construed in accordance with the laws of said Commonwealth.

                  This Promissory Note shall be non-recourse to the Borrower,
except as to 40% of the Borrower's total obligations, including principal and
interest, outstanding from time to time under this Promissory Note, for which
the Company shall have full recourse to the Borrower.

<PAGE>

Further, the 40% obligation subject to such full recourse shall by specific
attribution include first any unpaid interest obligation of the Borrower, to
the extent any such interest does not exceed 40% of the total obligation.

                  The Borrower waives presentment, demand, notice, protest
and all other demands and notices in connection with the delivery,
acceptance, performance, default and enforcement of this Promissory Note.

                                      By: /s/ Richard Underwood
                                          --------------------------------
                                              Richard Underwood

                                      Address:_____________________<PAGE>

                 DATED                             July 1, 1994

                               ACN NO. 005 647 496

                               MOLDFLOW PTY. LTD.

                               ALAN ROLAND THOMAS

                                SERVICE AGREEMENT

                         MINTER ELLISON MORRIS FLETCHER
                                   Solicitors
                                40 Market Street
                               MELBOURNE VIC 3000
                                DX 204 MELBOURNE

                             Telephone (03) 617 4617
                             Facsimile (03) 617 4666
                            Reference JJS 932926 CML
<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<S>  <C>                                                                   <C>

1.   DEFINITIONS .......................................................    1

2.   CONTRACT OF EMPLOYMENT ............................................    4

3.   TERM OF EMPLOYMENT ................................................    4

4.   RESPONSIBILITIES OF THE EXECUTIVE .................................    5

5.   REMUNERATION AND TERMINATION BENEFITS .............................    6

6.   TERMINATION .......................................................    7

7.   CONFIDENTIALITY ...................................................   10

8.   NON COMPETITION ...................................................   11

9.   COMPANY RECORDS ...................................................   15

10.  PATENT AND COPYRIGHT ..............................................   16

11.  EXECUTIVE'S LIABILITY .............................................   17

12.  LEAVE .............................................................   17

13.  ARBITRATION .......................................................   18

14.  FURTHER ASSURANCES ................................................   18

15.  CONTINUANCE .......................................................   19

16.  NOTICE ............................................................   19

17.  SEVERANCE .........................................................   20

18.  PROPER LAW ........................................................   20

19.  ASSIGNMENT ........................................................   20

20.  ENTIRE AGREEMENT ..................................................   21

21.  NO WAIVER .........................................................   21

22.  MODIFICATION ......................................................   21

23.  INTERPRETATION ....................................................   22

</TABLE>

REMUNERATION SCHEDULE
<PAGE>

                                  CONFIDENTIAL

                          SERVICE AGREEMENT - EXECUTIVE

AGREEMENT dated

BETWEEN        MOLDFLOW PTY. LTD.

AND            ALAN ROLAND THOMAS
                     OF
               10 CITRON AVENUE, BALWYN in the State of Victoria

RECITAL

The Executive has agreed to serve the Company upon the terms and conditions
contained in this Agreement.

AGREEMENT

1.    DEFINITIONS

1.1   In this Agreement and unless a contrary intention appears:

      `ASSOCIATE' in relation to a natural person includes:

      (a)   the spouse, brother, sister, lineal ancestor and lineal descendant
            of the natural person;

      (b)   the trustee or trustees of any trust under which the Persons
            described in paragraph (a) hereof or any of them may benefit; and

      (c)   any other Person or Persons in concert with whom the natural person
            is acting, proposes to act or is or proposes to become associated,
            whether informally or formally, in any way in respect of the matter
            to which the reference relates;

      `ASSOCIATE' in relation to a corporation includes:

      (a)   a director secretary and shareholder of the corporation;
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                                            2

      (b)   a corporation that is a Related Corporation or an Associated Entity;

      (c)   a director secretary and shareholder of such Related Corporation or
            Associated Entity;

      (d)   the trustee or trustees of any trust under which the Persons
            described in paragraphs (a), (b) and (c) hereof or any of them may
            benefit; and

      (e)   any Person or Persons in concert with whom the corporation is acting
            or proposes to act or is or proposes to become associated, whether
            informally or formally, in any other way in respect of the matter to
            which the reference relates;

      `ASSOCIATED ENTITY' means any corporation, company, trust, partnership or
      other entity in which the Company or a Related Corporation has an
      interest, whether direct or indirect, of 20% or more;

      `BOARD' means the Board of Directors of the Company from time to time;

      `COMMENCEMENT DATE' means 1 July 1994 or such other date as the parties
      hereto may agree;

      `COMPETITOR' means for the purposes of sub-paragraph 6.4(c)(i) of this
      Agreement any Person who is, in the reasonable opinion of the Company, a
      competitor of the Company and the Related Corporations and Associated
      Entities of the Company or any of them;

      `CUSTOMER' means for the purposes of sub-paragraph 6.4(c)(i) of this
      Agreement any Person who is, in the reasonable opinion of the Company, a
      customer of the Company and the Related Corporations and Associated
      Entities of the Company or any of them;

      `ENTITLEMENT' has the same meaning as in section 609 of the Corporations
      Law;
<PAGE>

                                            3

      `INITIAL PERIOD' means the period of 3 calendar years;

      `PATENT APPLICATION' includes in relation to a patent application any
      continuation, continuation in part, division, re-issue or substitution of
      lieu thereof;

      `PATENT RIGHTS' means all rights of patents and/or Patent Applications
      both in Australia and elsewhere in the World relating to each discovery,
      invention, secret process or improvement in procedure referred to in
      clause 10 of this Agreement whether in whole or in part including any
      re-issues, continuations and continuations in part or any substitutions of
      the patent applications;

      `PERSON' and words signifying persons include individuals, firms,
      partnerships, bodies corporate, associations and governments and
      governmental, semi-governmental and local authorities and agencies;

      `PROPRIETARY RIGHTS' means all rights and interest in every process and
      improvement in procedure referred to in clause 10 of this Agreement and
      its manufacture and use and shall include, but not be limited to, ideas,
      knowhow, technology, confidential information, customer lists, data and
      trade secrets;

      `RELATED CORPORATION' has the same meaning as in section 50 of the
      Corporations Law;

      `RECOGNISED STOCK EXCHANGE' means Australian Stock Exchange Limited or any
      other body corporate that is declared by regulations made pursuant to the
      Corporations Law as a securities exchange for the purpose of the
      Corporations Law;

      `RELEVANT INTEREST' has the same meaning as in Part 1.2 Division 5 of the
      Corporations Law;
<PAGE>

                                            4

      `REMUNERATION SCHEDULE' means the remuneration schedule to this Agreement
      which is annexed to, and forms part of, this Service Agreement, as amended
      from time to time;

1.2   Each word or expression not defined in sub-clause 1.1 of this Agreement
      but used in this Agreement and defined in the Remuneration Schedule shall
      have the same meaning as defined in the Remuneration Schedule.

1.3   Where there is any conflict between the provisions of this Agreement and
      the Remuneration Schedule, the provisions of this Agreement prevail and
      upon a written request being received from any party, all parties must
      cause the Remuneration Schedule to be amended in order to remove that
      conflict.

2.    CONTRACT OF EMPLOYMENT

      The Company agrees to employ the Executive and the Executive agrees to
      serve the Company as an executive on the terms and conditions hereinafter
      contained.

3.    TERM OF EMPLOYMENT

3.1   Subject to termination pursuant to clause 6 of this Agreement, the
      Executive's employment with the Company pursuant to this Agreement shall
      be for the Initial Period commencing on the Commencement Date and
      thereafter for such further period as is agreed between the Company and
      the Executive pursuant to sub-clauses 3.2 and 3.3. If no such further
      period is agreed between the Company and the Executive, this Agreement
      will terminate at the expiration of the Initial Period.

3.2   If the Executive is not in breach of this Agreement the Executive may by
      notice in writing given to the Company not later than 6 months before the
      expiration of the Initial Period extend the period of this Agreement for a
      further period of 12 months.
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                                            5

3.3   (a)   Not later than 6 months before the expiration of the Initial
            Period or any further period under clause 3.2, the Company and the
            Executive must confer with the view to reaching agreement as to
            whether the term of employment of the Executive must be extended
            and, if so, on what terms.

      (b)   Each party shall advise the other party no later than 3 months (or
            such other period as they may agree in writing) prior to the
            expiration of the Initial Period or any further period under clause
            3.2 of their decision regarding the matters referred to in paragraph
            3.3(a).

3.4   The terms of any further employment agreed pursuant to this clause shall
      be governed by this Agreement except to the extent that the terms of this
      Agreement are varied in writing by the parties.

4.    RESPONSIBILITIES OF THE EXECUTIVE

      During his employment under this Agreement, the Executive must:

      (a)   undertake such duties and exercise such powers, authorities and
            discretions in relation to the business of the Company as the Board
            or the Chief Executive Officer shall from time to time delegates to
            him;

      (b)   in the discharge of such duties and the exercise of such powers,
            authorities and discretions, conform to observe and comply with the
            directions, restrictions and regulation of the Board or the Chief
            Executive Officer made or given from time to time;

      (c)   comply with all legal requirements, statutory or otherwise,
            pertaining to his position and responsibilities;
<PAGE>

                                            6

      (d)   at all times comply with all lawful orders and instructions given to
            him by the Board or the Chief Executive Officer and comply in all
            respects with all or any rules and regulations which have been or
            may after the date of this Agreement be established by the Company
            for the conduct of its employees;

      (e)   faithfully serve the Company and at all times use his best
            endeavours to promote the interests of the Company for the time
            being;

      (f)   devote the whole of his attention, time and ability to the
            performance of his duties pursuant to this Agreement during the
            reasonable normal working hours prescribed by the Company and at
            such other times as may be reasonably necessary;

      (g)   not without the written consent of the Company, which must not be
            unreasonably withheld, during the continuance of this Agreement be
            engaged or interested, either directly or indirectly, in any
            capacity in any other trade, business or occupation whatsoever
            whether or alone jointly with or as a director, manager, agent or
            servant of any other Person but nothing herein shall prevent the
            Executive from having an entitlement to not more than 10% of the
            ordinary shares in any company whose share capital is quoted or
            dealt in on a Recognised Stock Exchange and which is not carrying on
            business in competition with the Company.

5.    REMUNERATION AND TERMINATION BENEFITS

      The Executive's remuneration and termination benefits shall be determined
      in accordance with the provisions of the Remuneration Schedule.
<PAGE>

                                            7

6.    TERMINATION

6.1   Notwithstanding anything contained in this Agreement or in the
      Remuneration Schedule, this Agreement and the Remuneration Schedule may
      forthwith and with such notice (if any) as is provided in this clause or
      payment in lieu of such notice (if any) as is provided in this clause be
      determined by the Company at its absolute discretion if any one or more of
      the following events occur:

      (a)   the Executive commits wilful misconduct, fraud or dishonesty;

      (b)   the Executive commits a material breach of this Agreement which is
            not in the reasonable opinion of the Company reasonably capable of
            remedy by the Executive;

      (c)   the bankruptcy of the Executive or the committing by the Executive
            of an act of bankruptcy;

      (d)   the Executive becomes of unsound mind;

      (e)   the use or abuse of alcohol or drugs by the Executive to the extent
            that, in the opinion of the Company, the Executive is no longer able
            properly to perform his functions under this Agreement;

      (f)   the conviction of the Executive of an indictable criminal offence;

      (g)   the Executive fails to perform or observe any of the terms or
            provisions of this Agreement for a period of at least 30 days (or
            such longer period as may be agreed by the parties) following the
            receipt of a written notice from the Company which:

            (i)   specifies the nature of the Executive's failure; and
<PAGE>

                                            8

            (ii)  advises the Executive that should the failure continue for a
                  period 30 days (or such longer period as has been agreed by
                  the parties) from the date of the service of the notice, his
                  employment may be terminated forthwith;

      (h)   the Executive is prevented from carrying out his duties in a proper
            and business like manner by reason of sickness, ill health or injury
            for any consecutive period of not less than three months or for an
            aggregate of 100 working days in any 12 calendar month period;

      (i)   the Company suspends or ceases its operations or a substantial
            portion thereof; or

      (j)   the Executive fails to disclose an interest which, in the opinion of
            the Company, has caused a conflict between the Executive's duty to
            the Company and any other duty to which the Executive may be
            subject, directly or indirectly.

      The parties acknowledge and agree that each of the above grounds for
      termination are separate and distinct and shall not operate in any way to
      limit the generality of any other ground or grounds of termination set out
      above, all of which shall have at all times independent operation.

6.2   The notice required for termination in each of the foregoing events is as
      set out below:

      EVENT             NOTICE

      (as set out in sub-clause 6.1)

      (a)   No period of notice required.

      (b)   No period of notice required.

      (c)   No period of notice required.

      (d)   6 months notice.

      (e)   No period of notice required.
<PAGE>

                                            9

      (f)   No period of notice required.

      (g)   No period of notice required.

      (h)   6 months notice.

      (i)   6 months notice.

      (j)   No period of notice required.

6.3   The Company may elect to make a payment to the Executive in lieu of notice
      provided for in sub-clauses 6.2 or 6.5 and such payment will be the amount
      equal to that proportion of the Executive's then current total
      remuneration attributable to the period of notice (if any). If no period
      of notice is required pursuant to sub-clause 6.2 of this Agreement, no
      payment in lieu of notice is required.

6.4   (a)   The Executive may, upon and only upon having served as an
            employee of the Company pursuant to this Agreement for a period of
            not less than 2 1/2 years, terminate this Agreement by giving the
            Company not less than 6 months written notice of termination.

      (b)   The Company may choose to waive service of the notice period given
            by the Executive pursuant to sub-clause 6.4(a) of this Agreement
            and, in such case, shall, subject to sub-clause 6.4(c) of this
            Agreement, pay the Executive an amount equal to that proportion of
            the Executive's total remuneration attributable to the waived period
            of notice as if the employment had continued during the waived
            period.

      (c)   (i)   If the Executive intends entering into the employment of, or
                  does so enter into the employment of, a Competitor or Customer
                  during the period of written notice of termination given by
                  the Executive pursuant to sub-clause 6.4(a) of this Agreement,
                  then and in that event the Company will not be under any
                  obligation to make any payments to the Executive pursuant to
                  sub-clause 6.4(b) of this Agreement in lieu of such waived
                  period of notice and the Executive must forthwith refund
<PAGE>

                                            10

                  to the Company any moneys paid under that sub-clause by the
                  Company to the Executive.

            (ii)  For the purposes of sub-clause 6.4(c)(i), the phrases
                  `entering into the employment of' and `enter into the
                  employment of' includes being or becoming directly or
                  indirectly a member, shareholder, director, employee,
                  consultant, agent or senior executive in, of, for, to or in
                  respect of (as the case may be) any Person or Persons.

6.5   If during the term of this Agreement there is a change to the Executive's
      employment conditions which, by an objective reasonable standard, is to
      his material detriment, the Executive may at any time during the period of
      3 months after that change, elect to terminate this Agreement and the
      Remuneration Schedule by not less than 3 months written notice to the
      Company.

7.    CONFIDENTIALITY

7.1   The Executive must:

      (a)   not, except as authorised or required by his duties as an employee
            of the Company, reveal to any Person or Persons any of the trade
            secrets, secret or confidential operations, processes or dealings or
            any information concerning the Company's business or the
            organisation, business finances, transactions or affairs of the
            Company which may come to his knowledge during or at any time after
            the continuance of this Agreement;

      (b)   keep with complete secrecy all confidential information entrusted to
            him;

      (c)   not use or attempt to use, nor assist any other person to use or
            attempt to use, any such information in any manner which may injure
            or cause loss either directly
<PAGE>

                                            11

            or indirectly to the Company or its business or may be likely so to
            do.

7.2   Each restriction set out in sub-clause 7.1 will continue to apply after
      the termination of this Agreement without limitation in point of time but
      will cease to apply to information which comes into the public domain
      other than by breach of this Agreement or by any breach of any other duty
      or obligation of confidentiality owed to the Company.

7.3   For the purposes of this clause 7, `Company' includes jointly and
      severally the Company and each Related Corporation of the Company and each
      Associated Entity of the Company.

8.    NON COMPETITION

8.1   In consideration of the employment of the Executive and other valuable
      consideration whether directly or indirectly received by the Executive
      from the Company and to reasonably protect the goodwill and the business
      of the Company, the Executive agrees with the Company that:

      (a)   this clause will have effect as if it were several separate
            covenants and restraints consisting of each separate covenant and
            restraint obtained by the combinations set out in paragraph (b) of
            this sub-clause combined with each separate period of time set out
            in paragraph (c) of this sub-clause and of each such separate
            combination combined with each separate area set out in paragraph
            (d) of this sub-clause and if any of these several separate
            covenants and restraints are or become invalid or unenforceable for
            any reason, then that invalidity or unenforceability will not affect
            the validity or enforceability of any of the other separate
            covenants and restraints;

      (b)   without the prior written consent of the Company, the Executive will
            not, whether directly or indirectly,
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                                            12

            for the periods and within the areas specified in sub-clauses 8.1(c)
            and (d) respectively:

            (i)   be:

                  (A)   a member, or

                  (B)   a shareholder, or

                  (C)   a debenture holder, or

                  (D)   a director, or

                  (E)   an employee, or

                  (F)   a consultant, or

                  (G)   an agent, or

                  (H)   senior executive

                  in, of, for, to, or in respect of (as the case may be) any,

                  A.    corporation, or

                  B.    Person, or

                  C.    firm, or

                  D.    business, or

                  E.    trust

                  which is engaged in or carries on any business within the
                  defined areas which is or, in the reasonable opinion of the
                  Company, is likely to be during the period of restraint in
                  competition to any material extent with any business carried
                  on by the Company or any Related Corporation or Associated
                  Entity (`Specified Business');

            (ii)  for himself or in any of the capacities listed in
                  sub-paragraph 8.1(b)(i) or otherwise:

                  (A)   induce or solicit any employee or agent of the Company
                        or any Related Corporation or Associated Entity of the
                        Company to leave the employment or agency of the
<PAGE>

                                            13

                        Company or such Related Corporation or Associated
                        Company;

                  (B)   approach or accept any approach from any customer of the
                        Company or any Related Corporation or Associated Entity
                        of the Company with the view to soliciting for himself
                        the business of that customer;

                  (C)   seek to obtain orders in respect of any services
                        provided by the Company or any Related Corporation or
                        Associated Entity of the Company to any Person who at
                        the date of determination or termination of this
                        Agreement is a customer of, or in the habit of dealing
                        with, the Company or any Related Corporation or
                        Associated Entity of the Company or represents himself
                        as being in any way connected or having formerly been
                        connected with or interested in the Specified Business;

                  (D)   compete or seek to compete with the Company or any
                        Related Corporation or Associated Entity of the Company
                        in the Specified Business or in any way interfere with
                        the Specified Business;

      (c)   the periods referred in paragraph 8.1(b) are:

            (i)   during the period of 1 year from the date of termination of
                  this Agreement;

            (ii)  during the period of 6 months from the date of termination of
                  this Agreement;

      (d)   the areas referred to in paragraph 8.1(b) are:

            (i)    Australia;

            (ii)   Victoria;
<PAGE>

                                            14

            (iii)   New South Wales;

            (iv)    Queensland;

            (v)     Western Australia;

            (vi)    Tasmania;

            (vii)   Australian Capital Territory;

            (viii)  Northern Territory;

            (ix)    United States of America;

            (x)     Great Britain;

            (xi)    Japan;

            (xii)   each other place where the Company has an office, agency or
                    established presence.

8.2   The parties agree that:

      (a)   any combination of the acts referred to in paragraph 8.1(b) by the
            Executive for the separate periods and within the separate areas
            referred to would be unfair and calculated to damage the Specified
            Business and would lead to substantial loss to the Company;

      (b)   each separate covenant and restraint in this Agreement is reasonable
            and that substantial consideration has been received for it both
            directly and indirectly by the party to be restrained by these
            covenants and that the Executive who is affected by this clause has
            been responsible for and approves its drafting;

      (c)   the words `directly or indirectly interested or engaged in or
            concerned with' will be given the widest possible interpretation and
            will include without limitation management without salary, advising
            or influencing a competitive business on a continuing basis (whether
            for direct remuneration or benefit or otherwise), establishing or
            being interested in or influencing such a competitive business
            through any association or arrangement with any Person, nominee or
            trust in or over which any interest or influence (absolute or
            partial) is held.
<PAGE>

                                            15

8.3   The provisions of this clause 8 do not in any way operate to limit the
      generality of any other clause of this Agreement, all of which will have
      at all times independent operation unrestricted by provisions of this
      clause 8.

8.4   The Executive must not, after the termination of this Agreement for any
      cause whatever, represent himself as being in any way connected with or
      interested in the business of the Company or any Related Corporation or
      Associated Entity of the Company.

9.    COMPANY RECORDS

9.1   The Executive must not, during his employment with the Company or at any
      time after the termination of his employment, irrespective of the time,
      manner or cause of such termination of his employment, directly or
      indirectly disclose to any Person or Persons the requirements of the
      Company or any Related Corporation or Associated Entity of the Company or
      the name and address of any customer of the Company or any Related
      Corporation or Associated Entity of the Company. This restriction shall
      continue to apply after the termination of this Agreement without
      limitation in point of time.

9.2   The Executive must not, during the continuance of this Agreement, make
      otherwise than for the benefit of the Company any notes or memoranda
      relating to any matter within the scope of the business of the Company or
      any Related Corporation or Associated Entity of the Company or concerning
      any of the dealings or affairs of the Company or any Related Corporation
      or Associated Entity of the Company.

9.3   The Executive must, upon the termination of his employment with the
      Company, irrespective of the time, manner or cause of such termination,
      surrender to the Company all lists, and all notes and other documents
      relating to the business of the Company or any Related Corporation or
      Associated Entity of the Company and all other property whatever
<PAGE>

                                            16

      belonging to the Company or any Related Corporation or Associated Entity
      of the Company and the Executive agrees not to retain any copies of
      documents belonging to the Company or any Related Corporation or
      Associated Entity of the Company.

9.4   The provisions of this Agreement are in addition to and not in derogation
      of any of the common law rights of the Company pertaining to the
      Executive's services with the Company.

10.   PATENT AND COPYRIGHT

10.1  The Executive acknowledges and agrees that he will forthwith disclose to
      the Company any discovery, invention, literary artistic or musical work,
      secret process or improvement in procedure made, developed or discovered
      by the Executive whilst in the service of the Company in connection with
      or in any way affecting or relating to the business of the Company or any
      Related Corporation or Associated Entity of the Company or capable of
      being used or adopted for use with that business or in connection with
      that business and any copyright, Patent Rights and Proprietary Rights
      attaching to any of them all of which will belong to and be the absolute
      property of the Company.

10.2  The Executive, if and whenever required by the Company so to do (whether
      during or after the termination of his employment), must at the expense of
      the Company or its nominee apply or join in applying with the Company (at
      the discretion of the Company) for letters patent or other similar
      protection in Australia or in any other part of the world for any such
      invention, secret process or improvement as referred to in sub-clause 10.1
      and execute all instruments and do all things necessary for vesting the
      letters patent or other similar protection when obtained and all right and
      title to and interest in them (including all Patent Rights and Proprietary
      Rights) in the Company or its nominee absolutely and as sole beneficial
      owner or such other person as the Company may require.
<PAGE>

                                            17

10.3  The Executive irrevocably appoints the Company to be his attorney in his
      name and on his behalf to execute and do any such instrument, act or thing
      and generally to use his name for the purpose of giving to the Company or
      its nominee the full benefit of the provisions of this clause and in
      favour of any third party a certificate in writing signed by any director
      or secretary of the Company that any instrument or act falls within the
      authority hereby conferred will be conclusive evidence that such is the
      case.

10.4  The provisions of this clause will continue to apply after the termination
      of this Agreement but without limitation in point of time.

11.   EXECUTIVE'S LIABILITY

      The Executive indemnifies and undertakes to keep indemnified the Company
      and each Related Corporation or Associated Entity of the Company in
      respect of loss or damage suffered or incurred by the Company or any
      Related Corporation or Associated Entity of the Company, where such loss
      or damage arises or is incurred as a direct result of any wilful breach of
      the Executive's obligations under the terms of this Agreement. Without in
      anyway limiting the generality of any other provision of this Agreement,
      this clause 11 is in addition to and not in derogation of any of the
      common law or other rights of the Company pertaining to the Executive's
      services with the Company.

12.   LEAVE

12.1  The Executive will be entitled to 4 weeks annual leave in each year of his
      employment and during such leave will be entitled to the receipt of total
      remuneration as provided in the Remuneration Schedule. Leave must be taken
      at such time or times as agreed upon by the Company and the Executive.
<PAGE>

                                            18

12.2  The Executive will be entitled to 5 days sick leave for each completed
      year of service of his employment, and during such leave will be entitled
      to the receipt of total remuneration as provided in the Remuneration
      Schedule. Any sick leave entitlement not used in any year will accrue and
      may be utilized in any subsequent year. Any sick leave entitlement not
      utilized at the date of termination of employment lapses.

12.3  The Company may, at its discretion, grant to the Executive special leave
      for purposes other than those referred to in sub-clause 12.1 of 12.2 on
      such terms as the Company may consider appropriate.

13.   ARBITRATION

      If any difference or dispute should arise between the parties to this
      Agreement as to the meaning of any of the terms and conditions of this
      Agreement or the Remuneration Schedule or as to the rights, duties or
      obligations of either party under this Agreement or the Remuneration
      Schedule or as to any matter or thing arising out of this Agreement or the
      Remuneration Schedule, the difference or dispute must be submitted to
      arbitration in Victoria, Australia at the Australian Centre for
      International Commercial Arbitration in accordance with and subject to the
      Institute of Arbitrators Australia Rules for the conduct of commercial
      arbitrations.

14.   FURTHER ASSURANCES

      Each of the parties hereto must, and shall use their best endeavours to
      procure their Associates to, sign, execute and do all such further
      documents, acts, matters and things as shall be necessary or desirable to
      give effect to the provisions of this Agreement.
<PAGE>

                                            19

15.   CONTINUANCE

      The expiration or determination of this Agreement however arising shall
      not affect such of the provisions of this Agreement as are expressed to
      operate or to have effect after this Agreement and will be without
      prejudice to any right of action already accrued to either party in
      respect of any breach of this Agreement by the other party.

16.   NOTICE

16.1  A notice to be given by a party to another party under this Agreement must
      be:

      (a)   in writing;

      (b)   directed to the recipient's address specified above or as varied by
            written notice; and

      (c)   left at or sent by prepaid registered post, hand delivery, telex or
            facsimile to that address,

      and will be deemed to be duly given:

      (d)   on the day of delivery;

      (e)   3 days after the date of posting by prepaid registered post; or

      (f)   if sent by telex or facsimile, when the answerback or message
            confirmation is received,

      as the case may be.

16.2  The provisions of this clause are in addition to any other mode of service
      permitted by law.
<PAGE>

                                            20

17.   SEVERANCE

17.1  If a provision of this Agreement is void or voidable by either party or
      unenforceable or illegal but would not be void or voidable or
      unenforceable or illegal as aforesaid if it were read down and it is
      capable of being read down, it must be read down accordingly.

17.2  If notwithstanding sub-clause 17.1 of this Agreement a provision of this
      Agreement is still void or voidable or unenforceable or illegal:

      (a)   if the provision would not be void or voidable or unenforceable or
            illegal if a word or words (as the case may be) were omitted, that
            word or those words are hereby severed; and

      (b)   in any other case, the whole provision is severed, and the remainder
            of this Agreement has full force and effect.

18.   PROPER LAW

      The validity, interpretation and performance of this Agreement will be
      governed by the laws of the State of Victoria and the parties submit to
      the exclusive jurisdiction of the Courts of that State and of any Courts
      competent to hear appeals those Courts. Without prejudice to any other
      permitted mode of service, service on a party of any writ of summons or
      notice thereof and of any other documents or pleadings in any action
      between the parties may be effected by delivering or leaving them at the
      address of the party to be served set out in this Agreement.

19.   ASSIGNMENT

19.1  This Agreement may be assigned by the Company to any successor in interest
      to its business or any part thereof.
<PAGE>

                                      21

19.2  The Executive shall not assign, transfer, convey, pledge or otherwise
      encumber this Agreement or his right title and interest herein.

20.   ENTIRE AGREEMENT

      This document embodies the entire understanding and the whole agreement
      between the parties hereto relative to the subject matter of this
      Agreement and all previous negotiations, representations, warranties,
      arrangements and statements (if any) whether expressed or implied with
      reference to the subject matter of this Agreement or to the intentions of
      any of the parties to this Agreement are merged in this Agreement and
      otherwise are hereby excluded and cancelled.

21.   NO WAIVER

21.1  The failure of a party at any time to require any performance by another
      party of a provision of this Agreement does not affect in any way the full
      right of the waiving party to require that performance subsequently.

21.2  The waiver by any party of a breach of a provision will not be deemed a
      waiver of all or part of that provision or any other provision or of the
      right of that party to avail itself of its rights subsequently.

21.3  Any waiver of a breach of this Agreement must be in writing signed by the
      party granting the waiver, and shall be effective only to the extent
      specifically set out in that waiver.

22.   MODIFICATION

      This Agreement may only be altered in writing signed by both parties.
<PAGE>

                                            22

23.   INTERPRETATION

      In this Agreement except to the extent that the context otherwise
      requires:

      (a)   words importing the singular include the plural and vice versa and
            words importing a gender include other genders;

      (b)   a reference to an Act of Parliament or Law or section or schedule of
            that Act or Law shall be read as if the words `or any statutory
            modification or re-enactment thereof or substitution thereof' were
            added to the reference and includes all statutory instruments issued
            under that Act or Law as at the date of this Agreement;

      (c)   where a word or phrase is given a particular meaning, other parts of
            speech or grammatical forms of that word or phrase have
            corresponding meanings;

      (d)   a reference to a party to this Agreement or any other document or
            agreement includes its successors and permitted assigns;

      (e)   a reference to a party will be construed as a reference to a party
            to this Agreement;

      (f)   a reference to a document or agreement including this Agreement
            includes a reference to that document or agreement as amended,
            novated, supplemented, varied or replaced from time to time;

      (g)   headings, other than the word `AGREEMENT' on page 1, will be
            disregarded;

      (h)   references to currency shall be construed as references to
            Australian currency;
<PAGE>

                                            23

      (i)   a reference to writing includes typewriting, printing, lithography,
            photography and any other mode of representing or reproducing words
            in a permanent and visible form;

      (j)   if any day appointed or specified by this Agreement for the payment
            of any money falls on a Saturday, Sunday or a day on which trading
            banks (as defined in the BANKING ACT 1959 of the Commonwealth) are
            not open for business in Melbourne (`Non Business Day'), the day so
            appointed or specified shall be deemed to be the next day which is
            not a Non Business Day.

EXECUTED as an agreement.

THE COMMON SEAL of MOLDFLOW PTY. LTD.  )        [SEAL]

                                       )
is affixed in accordance with          )
its articles of association            )
in the presence of:                    )

/s/ Tony Sherburn                          /s/ Hugh Henderson
 .......................................    .....................................
Secretary                                  Executive

SIGNED                                 )
by ALAN ROLAND THOMAS                  )
in the presence of:                    )

                                           /s/ A. Roland Thomas
 .......................................    .....................................
Signature of Witness                       Signature of #

 .......................................
Name of Witness (*Print)

<PAGE>

                                  CONFIDENTIAL

                              REMUNERATION SCHEDULE

1.    DEFINITIONS

1.1   In this Schedule, unless a contrary intention appears from the context:

      `BURDEN OF FRINGE BENEFITS TAX' means the amount of fringe benefits tax
      payable by the Company referable to the particular benefits provided by
      the Company to the Executive multiplied by a factor determined by the
      following formula:

                                    1
                                 -------
                                 (1 - T)

      where T means the rate of tax payable by companies of the kind of the
      Company as prescribed by the INCOME TAX RATES ACT 1986 of the
      Commonwealth';

      `BURDEN OF NON DEDUCTIBILITY' means an amount calculated according to the
      following formula:

                                    1
                           A x   -------
                                 (1 - T)

      where:

      A means the actual cost to the Company of providing the particular
      benefits provided by the Company to the Executive

      T means the rate of tax payable by companies of the kind of the Company as
      prescribed by the INCOME TAX RATES ACT 1986 of the Commonwealth';
<PAGE>

                                            2

      `FBT ACT' means the FRINGE BENEFITS TAX ASSESSMENT ACT 1986 of the
      Commonwealth';

      `FRINGE BENEFITS' means fringe benefits within the meaning of the FBT
      Act';

      `INITIAL REMUNERATION PERIOD' means the calendar year commencing on the
      date of execution of the Principal Agreement;

      `PRINCIPAL AGREEMENT' means the Service Agreement to which this Schedule
      is annexed and forms part;

      `REMUNERATION PERIOD' means a calendar year the first day of which is the
      date of execution of the Principal Agreement or any anniversary of that
      date;

      `TOTAL REMUNERATION' means the total cost to the Company of paying salary
      and providing benefits to an Executive pursuant to clause 2.1(a) of this
      Schedule.

1.2   Each word or expression not defined in clause 1.1 of this Schedule but
      used in this Schedule and defined in the Principal Agreement will have the
      same meaning as defined in the Principal Agreement.

2.    REMUNERATION

2.1   In consideration of the service to be provided by the Executive and the
      covenants given by the Executive under the Principal Agreement, the
      Company shall pay or provide to or for the Executive:

      (a)   during the initial Remuneration Period, Total Remuneration of
            $120,000 per annum to be paid or provided by the Company to the
            Executive by way of salary of such amount and benefits of such kinds
            and cost to the Company as the Company and the Executive may agree
            and in the absence of any such agreement
<PAGE>

                                            3

            to be paid and provided by the Company to the Executive entirely by
            way of salary; and

      (b)   unless the Principal Agreement is terminated by the Company as a
            result of any act or default of the Executive, other than under
            clause 6.1(d), (h) or (i) $300,000 upon termination of the Principal
            Agreement except that the payment shall be $200,000 if the net
            profit before tax of Moldflow Pty Ltd for the financial year ending
            30 June 1994 is less than $1,900,000. For the purpose of this clause
            the net profit before tax of Moldflow Pty Ltd shall be the amount
            agreed by its auditors to be the net profit before tax and shall be
            calculated in accordance with the same accounting principles
            observed by Moldflow Pty Ltd in preparing its budget for the
            financial year ending 30 June 1994.

      The Company must reimburse all reasonable and proper expenses incurred by
      the Executive in carrying out his duties in accordance with this Schedule
      and the Principal Agreement subject always to the presentation of fully
      supportable claims approved by the Company.

2.2   For the purposes of this Clause, the cost to the Company of any benefits
      provided by the Company to the Executive shall be the actual cost to the
      Company of providing such benefits (as determined by the Company and
      notified to the Executive) and shall include:

      (a)   where the benefits are fringe benefits and are provided to the
            Executive prior to 1 April 1994 - the amount which would be the
            fringe benefits taxable amount (as defined in S.136(1) of the FBT
            Act) if calculated in respect of such benefits increased by the
            burden of Fringe Benefits Tax;

      (b)   where the benefits are fringe benefits and are provided to the
            Executive on or after 1 April 1994 - the amount which would be the
            fringe benefits
<PAGE>

                                            4

            taxable amount (as defined in S.136AA of the FBT Act) if calculated
            in respect of such benefits; or

      (c)   where the benefits are not fringe benefits and the Company is not
            entitled to an allowable deduction under the Income Tax Assessment
            Act in respect of such benefits - the burden of non deductibility.'

2.3   Where by the last day of a Remuneration Period the total cost to the
      Company of the benefits provided to the Executive does not equal the cost
      of the benefits agreed by the Company to be provided to the Executive for
      that Remuneration Period:

      (a)   the balance then remaining to be provided to the Executive must be
            provided in such manner as the parties agree or failing such
            agreement in the form of additional salary; and

      (b)   if the employment of the Executive is not then ceasing, the cost to
            the Company of any excess benefits provided during the remuneration
            period shall be deducted from the amount of the Total Remuneration
            to be paid or provided for the following Remuneration Period, or if
            the employment of the Executive has ceased an amount equal to the
            cost to the Company of such excess must be paid forthwith by the
            Executive to the Company.

3.    REVIEW OF REMUNERATION

3.1   The Company agrees that, while the Executive's employment continues under
      the Principal Agreement, for each Remuneration Period it must, at least 28
      days prior to the expiration of such Period, review the level of Total
      Remuneration, and the components of that remuneration, to which the
      Executive shall be entitled in the following Remuneration Period.
<PAGE>

                                            5

3.2   The Company's decision in relation to the level of Total Remuneration for
      the following Remuneration Period pursuant to sub-clause 3.1 of this
      Schedule must be reasonable, and must not be less than the Total
      Remuneration paid during the initial Remuneration Period, but otherwise
      will be final and binding on the Executive.

3.3   The Executive will not be entitled to an increase in Total Remuneration
      otherwise than as a result of a review conducted pursuant to clause 3 of
      this Schedule.

3.4   As soon as is reasonable practicable following the review conducted
      pursuant to this clause by the Company, the Company shall provide to the
      Executive notice in writing of its decision. Where the Executive believes
      it to be appropriate and so notifies the Company, the Company must advise
      the Executive as soon as reasonably possible after the Executive's
      notification of the reasons upon which the decision was based.

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