Exhibit 10.42

                    SEPARATION AGREEMENT AND GENERAL RELEASE

         This Separation Agreement and General Release ("Agreement") is made and
entered into this 1st day of September, 1999 by and between Object Design, Inc.,
a Delaware Corporation ("ODI"), and Justin J. Perreault,  an individual residing
at 123 Chandler Street, Boston, MA 02116 ("Perreault").

                         W I T N E S S E T H   T H A T:

WHEREAS,  ODI has  employed  Perreault  most  recently  as  President  and Chief
Executive Officer; and

WHEREAS,  ODI and Perreault  wish to set forth the terms of the  termination  of
Perreault's employment with ODI;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, ODI and Perreault hereby agree as follows:

         1. Perreault  hereby agrees to resign as President and Chief  Executive
Officer of ODI,  effective  as of  September  30,  1999.  At the request of ODI,
Perreault will execute and deliver to ODI a separate  instrument  embodying such
resignation.

         2. ODI agrees to pay Perreault an amount of $210,000,  less  applicable
deductions,  and ODI shall provide  Perreault with medical and dental  insurance
coverage on the same basis as if he were still employed by ODI, less Perreault's
applicable  contribution,  for a period  of twelve  (12)  months  following  the
effective date of  termination;  provided,  however,  that if Perreault  becomes
re-employed  with another  employer  and is eligible to receive  such  insurance
coverage under another  employer-provided  plan, ODI's contributions  toward the
insurance coverage set forth herein shall terminate immediately unless Perreault
elects to continue such coverage,  at Perreault's sole expense.  Notwithstanding
and in replacement of the foregoing,  in the event that ODI reaches a definitive
agreement,  prior to September 30, 1999, to be acquired, and further conditioned
upon the final consummation of such acquisition,  ODI agrees to pay Perreault an
amount  of  $669,999.84,  less  applicable  deductions,  and ODI  shall  provide
Perreault with medical and dental insurance  coverage on the same basis as if he
were still  employed by ODI, less  Perreault's  applicable  contribution,  for a
period of twenty-four  (24) months  following the effective date of termination;
provided,  however,  that if Perreault becomes re-employed with another employer
and  is   eligible   to  receive   such   insurance   coverage   under   another
employer-provided  plan, ODI's  contributions  toward the insurance coverage set
forth herein shall terminate  immediately  unless  Perreault  elects to continue
such coverage, at Perreault's sole expense.

         3. ODI hereby  forgives any and all  outstanding  debt of principal and
interest under the promissory note of Perreault to ODI in 1996 (the "Note") that
was delivered by Perreault in connection with the exercise by Perreault of stock
options  granted  to him under  ODI's 1995  Nonqualified  Stock  Option  Plan to
purchase 460,000 shares of Common Stock of ODI (the "Loan"). ODI hereby releases
to  Perreault  the 50,210  shares  remaining  pledged to secure the  outstanding
amount of principal and interest of the Loan.  Perreault hereby acknowledges and
agrees that ODI's forgiveness of such debt is taxable compensation to Perreault.
ODI will  reimburse  Perreault in the amount of $66,061.75 for federal and state
taxes arising from the forgiveness of such indebtedness.

         4. ODI agrees  that  Perreault  may retain the  personal  computer  and
mobile telephone  provided to him during his employment with ODI,  provided that
Perreault   agrees  and  acknowledges  by  his  signature  below  that  (i)  all
Confidential  Information  and  material  belonging  to ODI,  including  without
limitation all software, documentation, records, forms, customer lists and data,
has been removed and deleted from such  computer;  (ii) Perreault has ceased any
and all utilization of such Confidential  Information and material; and (iii) no
copies  of such  Confidential  Information  and  material  have  been  made.  In
addition,  ODI agrees to provide Perreault with voice-mail and e-mail facilities
for a period of three (3) months following the effective date of termination.


<PAGE>

         5. All options which have  heretofore  been granted to Perreault  under
ODI's 1996 Stock Incentive and Nonqualified Stock Option Plan, 1995 Nonqualified
Stock Option Plan,  1989 Stock  Incentive  and  Nonqualified  Stock Option Plan,
and/or 1996 Employee Stock Purchase Plan (the  "Options")  shall be exercisable,
and  expire,  in  accordance  with their  terms in effect as of the date of this
Agreement.

         6. Perreault hereby acknowledges and ratifies his obligations under the
NON-COMPETITION,  NON-SOLICITATION,  NON-DISCLOSURE AND DEVELOPMENTS  AGREEMENT,
dated  February 23, 1999 between  Perreault and ODI, a copy of which is attached
hereto and incorporated herein by reference,  and Perreault further agrees to be
bound by the terms thereof.

         7. Perreault,  for good and valuable consideration the receipt of which
is hereby acknowledged,  for himself and his legal representatives,  successors,
and  assigns  hereby  releases,   remises,   and  forever  discharges  ODI,  its
subsidiaries  and  affiliates,  and their  respective  past,  present and future
agents, officers, directors,  shareholders,  attorneys, employees, servants, and
representatives and all of ODI's successors,  predecessors,  and assigns, of and
from all manner of actions, causes of actions,  suits, debts, demands,  damages,
costs,  expenses,   attorneys'  fees,   obligations,   agreements,   and  claims
whatsoever,  at law, in equity, or otherwise,  known or unknown, which Perreault
has or may have,  either now or at any time  before the date of this  Agreement,
against ODI,  including  but not limited to any claims  arising out of or in any
way  related  to  Perreault's  employment  by ODI,  Perreault's  resignation  as
President  and  Chief  Executive  Officer  of ODI,  and/or  the  termination  of
Perreault's employment by ODI; provided, however, that any claims that Perreault
may make against ODI for breach of this Agreement are specifically exempted from
this release.  Perreault  acknowledges and agrees that the payments and benefits
to be made to Perreault  pursuant to this Agreement are over and above any other
money  or  benefits  that  would  be due to  Perreault  under  the  terms of his
employment with ODI and ODI's usual policies and practices.

         8.  Perreault  and ODI hereby agree to be publicly  supportive  of each
other.  Perreault  agrees  not to  criticize,  disparage  or  otherwise  comment
negatively  about,  orally or in  writing,  directly  or  indirectly,  ODI,  its
subsidiaries,  affiliates  or any of their  respective  past,  present or future
officers,  directors,  employees,  agents,  businesses,  products  or  services.
Perreault  agrees to use his best  efforts to ensure that none of the members of
his family so criticize or disparage any of such persons or entities.  Perreault
further  agrees  that  he  shall  be  publicly  and  privately  cooperative  and
supportive of ODI in regard to its personnel,  corporate  practices and policies
and other matters. ODI agrees not to disparage or make negative statements about
Perreault  and to be  publicly  and  privately  cooperative  and  supportive  of
Perreault in regard to his transition.

         9. Perreault agrees that, except as may be required by law or as may be
mutually  agreed,  Perreault will keep the terms and existence of this Agreement
completely  and strictly  confidential,  and that  Perreault  will not hereafter
disclose any  information  concerning  this  Agreement to anyone,  except to the
extent necessary to enforce this Agreement.


<PAGE>

         10.  With the  exception  of the  personal  computer  set forth  above,
Perreault agrees to return any and all property, whether tangible or intangible,
provided to  Perreault  by ODI, as a condition  precedent  to ODI's  obligations
hereunder.

         11.  This   Agreement   and  the   NON-COMPETITION,   NON-SOLICITATION,
NON-DISCLOSURE AND DEVELOPMENTS AGREEMENT,  attached hereto, embodies the entire
understanding and agreement  between the parties,  and supersedes all other oral
or written  agreements  or  understandings  between  the parties  regarding  the
subject matter hereof,  including without limitation any terms and conditions of
any employment agreement or other similar agreement(s),  and it shall be binding
and inure to the  benefit of the  successors  and  assigns  of each.  No change,
alteration or modification hereof may be made except in a writing signed by both
parties  hereto.  This  Agreement and the rights and  obligations of the parties
hereunder  shall be construed in accordance with and governed by the laws of The
Commonwealth of  Massachusetts  (disregarding  any choice of law rules which may
look to the laws of any other jurisdiction).

         12. The  parties  represent  and  acknowledge  that in  executing  this
Agreement they do not rely and have not relied upon any other  representation or
statement made by any person or entity with regard to the subject matter, basis,
or effect of this Agreement, with the sole exception of the provisions set forth
herein.  Mistakes of fact or law shall not constitute  grounds for modification,
avoidance or rescission of the terms and conditions of this Agreement.  The fact
that a party or counsel for a party  drafted a provision or  provisions  of this
Agreement  shall not cause that  provision or those  provisions  to be construed
against the drafting party.

         13. This Agreement may be executed in one or more counterparts, each of
which when so executed  shall be deemed an original,  but all of which  together
shall constitute one and the same instrument.

         14. In entering into this  Agreement,  the parties  represent that they
have had the  opportunity to seek the advice of legal counsel and that the terms
of the Agreement have been  completely read and explained to them and that those
terms are fully understood and voluntarily agreed to.



ODI:                                             Perreault:
Object Design, Inc.                              Justin J. Perreault


By:_____________________________                 By:___________________________


Name:___________________________                 Name:_________________________
       (Printed or Typed)                                (Printed or Typed)

Title:__________________________