March 28, 2008
Exhibit
(e)(18)
March 28, 2008
CONFIDENTIAL
Xxxxxx Xxxxxx
Chairman of the Board
President and Chief Executive Officer
Moldflow Corporation
000 Xxx Xxxxxxxxxxx Xxxx, Xxxxx 000
Xxxxxxxxxx, XX 00000
Chairman of the Board
President and Chief Executive Officer
Moldflow Corporation
000 Xxx Xxxxxxxxxxx Xxxx, Xxxxx 000
Xxxxxxxxxx, XX 00000
Dear Xxxxxx:
This letter agreement sets forth the terms upon which Autodesk, Inc., (“Acquiror”), agrees to
enter into discussions regarding a potential business combination with Moldflow Corporation
(“Company”) (the “Transaction”), and certain related matters.
In consideration of the substantial amount of resources Acquiror will expend in evaluating
and negotiating the terms of the Transaction and of the mutual covenants set forth below,
Acquiror and Company agree as follows:
1. Other Negotiations. In consideration of Acquiror’s commitment to devote substantial
resources to a due diligence review of Company and review of legal documents relating to this
Transaction, Company agrees that until May 2, 2008 (or such earlier date that Acquiror advises
Company in writing that it is electing to discontinue efforts with respect to an investment in
Company) (the “Non-Solicitation Period”), it will not, and will not permit any of its officers,
directors, employees or affiliates or agents (each a “Representative”) acting on behalf of the
Company to, take any action to solicit, initiate, knowingly encourage (including by way of
furnishing non-public information) or assist the submission of any proposal or offer from, or enter
into or participate in negotiations or discussions with, any person or entity other than Acquiror
relating to (a) the acquisition, merger, consolidation, business combination or similar transaction
involving the Company, or any tender offer or exchange offer for 15% or more of the outstanding
shares of common stock of the Company; or (b) the sale or transfer of 15% or more of the
consolidated assets of the Company. Notwithstanding the foregoing, in the event that Acquiror
decreases any of the pricing terms contained in the non-binding term sheet referenced in
Section 4, the Company may, in its sole discretion, immediately terminate the
Non-Solicitation Period.
2. Standstill. Acquiror hereby acknowledges that, in consideration of the Company’s
willingness to agree to the Non-Solicitation Period, unless otherwise agreed in writing by the
Company, for a period commencing with the date of this letter agreement and expiring on September
28, 2008, Acquiror and its officers, directors,
employees will not, and Acquiror will not authorize or permit any of its Representatives acting on
behalf of Acquiror to, (a) publicly propose or publicly announce any intention to propose to the
Company or any other person any transaction between Acquiror and/or its Affiliates and the Company
and/or its security holders or involving any of the Company’s securities or security holders; (b)
acquire or assist, advise or encourage any other persons in acquiring, directly or indirectly,
control of the Company or any of the Company’s securities, businesses or assets; (c) directly or
indirectly, form, join or in any way participate in a third party “group” (or discuss with any
third party the potential formation of a group) with respect to any potential acquisition or other
strategic transaction involving all or a portion of the assets or securities of the Company; (d)
make, or participate in, any “solicitation” of “proxies” to vote or seek to advise or influence in
any manner whatsoever any person or entity with respect to the voting of any securities of the
Company, or whether alone or in concert with others, to seek to control, change or influence the
management, Board of Directors or policies of the Company, or nominate any person as a Director of
the Company, or propose any matter to be voted upon by the stockholders of the Company; (e) request
the Company (or any of its Representatives), directly or indirectly, to amend or waive any
provision of this paragraph (including this sentence); or (f) take any action that might require
the Company to make a public announcement regarding a possible transaction; provided, however, that
this paragraph (and all of the restrictions set forth in this paragraph) shall terminate
immediately and automatically (without any action on the part of either party hereto) upon (i) the
announcement or commencement by any person or “group” (within the meaning of Section 13(d) under
the Exchange Act) of a tender or exchange offer to acquire shares of common stock of the Company
which, if successful, would result in such person or “group” owning (when combined with any other
shares of common stock of the Company owned by such person or “group”) more than fifty percent
(50%) of the then outstanding shares of common stock of the Company, (ii) the announcement by the
Company of any merger, sale or other business combination transaction pursuant to which (A) the
outstanding common stock of the Company would be converted into cash, (B) the holders of
outstanding shares of common stock of the Company immediately prior to such transaction would hold,
as a “group”, less than 50% of the outstanding shares of common stock of the surviving or resulting
company or other entity in such transaction, or (C) all or substantial all of the Company’s assets
would be sold or otherwise transferred or conveyed to any person or “group” (within the meaning of
Section 13(d) under the Exchange Act).
3. Governing Law. This letter agreement shall be governed by the internal laws of
the State of California applicable to contracts wholly executed and performed therein. The parties
hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on
any matter arising out of or in connection with, this letter agreement shall be brought in any
United States federal court located in the State of California or in any California state court, so
long as one of such courts shall have subject matter jurisdiction over such suit, action or
proceeding, and that any cause of action arising out of this letter agreement shall be deemed to
have arisen from a transaction of business in the State of California, and each of the parties
hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate
courts therefrom) in any such suit; action or proceeding and irrevocably waives, to the fullest
extent permitted by
law, any objection that it may now or hereafter have to the laying of the venue of any such suit,
action or proceeding in any such court or that any such suit, action or proceeding brought in any
such court has been brought in an inconvenient forum. Process in any such suit, action or
proceeding may be served on any party anywhere in the world, whether within or outside of the
jurisdiction of any such court. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR IN CONNECTION WITH THIS LETTER
AGREEMENT.
4. General. Acquiror and Target have agreed upon a non-binding term sheet setting
forth certain indicative terms and conditions discussed by Acquiror and the Company with respect
to a possible Transaction. However, the parties shall have no obligation to consummate the
Transaction, unless and until a definitive agreement is reached, and in such case shall be subject
in all respects to the satisfaction of the conditions contained therein, and neither party hereto
shall have any liability to the other if the parties fail for any reason to execute such a
definitive agreement.
5. Waiver. The failure or delay by Acquiror to assert any of its rights under this
letter agreement shall not constitute a waiver of such rights nor shall any single or partial
exercise by Acquiror of any of its rights under this letter agreement preclude any other or further
exercise of such rights or any other rights under this letter agreement.
6. Notice: All notices, requests, claims, demands, waivers and other communications
under this letter agreement shall be in writing and shall be deemed given upon (a) personal
delivery, (b) transmitter’s confirmation of a receipt of a facsimile transmission or electronic
mail transmission of a copy of such written notice (in a generally available file format such as
tif, jpeg or pdf), (c) confirmed delivery by standard overnight carrier or when mailed in the
United States by certified or registered mail, postage prepaid, addressed to the parties at the
following addresses:
If to Acquiror:
Autodesk, Inc.
000 Xxxxxxx Xxxxxxx
Xxx Xxxxxx, Xxxxxxxxxx 00000
Facsimile No.: (000)000-0000
Attention: General Counsel
000 Xxxxxxx Xxxxxxx
Xxx Xxxxxx, Xxxxxxxxxx 00000
Facsimile No.: (000)000-0000
Attention: General Counsel
If to Company:
Moldflow Corporation
000 Xxx Xxxxxxxxxxx Xxxx, Xxxxx 000
Xxxxxxxxxx. MA 01701
Facsimile No.: (508) 358-5868
Attention: Xxxxxx Xxxxxx
000 Xxx Xxxxxxxxxxx Xxxx, Xxxxx 000
Xxxxxxxxxx. MA 01701
Facsimile No.: (508) 358-5868
Attention: Xxxxxx Xxxxxx
6. Remedies. As it would be very difficult to measure the damages which would result
to Acquiror from a breach by Company, or any of its Representatives of any of the undertakings,
warranties and representations contained in this letter agreement, Acquiror shall have the right to
have such undertakings, warranties and representations specifically enforced by a court of
competent jurisdiction. Company hereby recognizes and acknowledges that irreparable injury or
damage shall result to Acquiror in the event of a breach or threatened breach by Company or any of
its Representatives of the terms and provisions of this letter agreement. Therefore, Company agrees
that Acquiror shall be entitled to an injunction restraining Company and its Representatives from
engaging in any activity constituting such breach or threatened breach. Nothing contained herein
shall be construed as prohibiting Acquiror from pursuing any other remedies available to Acquiror
at law or in equity for such breach or threatened breach, including but not limited to, recovery of
damages from Company.
7. No Disclosure. Except as permitted by the Confidentiality and Non- Disclosure
Agreement dated as of January 1, 2008 between the parties, neither party shall disclose the
existence or the content of this letter agreement.
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Please contact Xxxx Xxxxxx at 000-000-0000 if you have any questions regarding the content of
this letter agreement. Otherwise, please indicate the concurrence of the Company with this letter
agreement by executing two copies of it in the space provided below and returning one such copy to
me at your earliest convenience. We look forward to the successful completion of the discussions
contemplated by this letter agreement.
Very truly yours, AUTODESK, INC. |
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By: | /s/ Xxxxxxx X. Xxxxxx | |||
Name: XXXXXXX X. XXXXXX | ||||
Title: VICE PRESIDENT | ||||
AGREED TO AND ACCEPTED:
MOLDFLOW CORPORATION
By: Name: |
/s/ A. Xxxxxx Xxxxxx
|
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Title:
|
CHAIRMAN & C.E.O |