Document:

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                                                                    Exhibit 10.5

                              MANAGEMENT AGREEMENT

      This Management Agreement (this "Agreement") is entered into as of May 24,
2004 by and among UGS Corp. (formerly known as UGS PLM Solutions Inc.), a
Delaware corporation (the "Company"), UGS Capital Corp. (formerly known as BSW
Holdings, Inc.), a Delaware corporation ("Capital"), UGS Capital Corp. II, a
Delaware corporation ("Capital II"), UGS Holdings, Inc., a Delaware corporation
("Holdings" and, together with the Company, Capital and Capital II, the "UGS
Corporations"), Bain Capital Partners, LLC, a Delaware limited liability company
("Bain"), Silver Lake Technology Management, L.L.C., a Delaware limited
liability company ("Silver Lake") and Warburg Pincus LLC, a New York limited
liability company ("Warburg" and, together with Bain and Silver Lake, the
"Managers").

                                    RECITALS

      WHEREAS, Capital, Capital II and Holdings have been formed for the purpose
of acquiring (the "Acquisition") all of the outstanding shares of capital stock
of the Company from Electronic Data Systems Corporation, a Delaware corporation
(the "Seller"), all on the terms and subject to the conditions of that certain
Stock Purchase Agreement dated as of March 12, 2004 (the "Purchase Agreement")
among the Seller, Capital and the Company;

      WHEREAS, to enable the UGS Corporations to engage in the Acquisition and
related transactions, the Managers provided financial and structural advice and
analysis as well as assistance with due diligence investigations and
negotiations (the "Financial Advisory Services"); and

      WHEREAS, the UGS Corporations want to retain the Managers to provide
certain management and advisory services to the UGS Corporations, and the
Managers are willing to provide such services on the terms set forth below.

                                    AGREEMENT

      NOW THEREFORE, in consideration of the mutual covenants contained herein,
the parties hereto, intending to be legally bound, hereby agree as follows:

      1. Services. Each of the Managers hereby agrees that, during the term of
this Agreement (the "Term"), it will provide the following consulting and
management advisory services to the UGS Corporations as requested from time to
time by the Boards of Directors of the UGS Corporations:

            (a) advice in connection with the negotiation and consummation of
         agreements, contracts, documents and instruments necessary to provide
         the UGS Corporations with financing on terms and conditions
         satisfactory to the UGS Corporations;

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            (b) financial, managerial and operational advice in connection with
        the Company's day-to-day operations, including, without limitation,
        advice with respect to the development and implementation of strategies
        for improving the operating, marketing and financial performance of the
        Company and its subsidiaries; and

            (c) such other services (which may include financial and strategic
        planning and analysis, consulting services, human resources and
        executive recruitment services and other services) as such Manager and
        the UGS Corporations may from time to time agree in writing.

Each of the Managers shall devote such time and efforts to the performance of
services contemplated hereby as such Manager deems reasonably necessary or
appropriate; provided, however, that no minimum number of hours is required to
be devoted by Bain, Silver Lake or Warburg on a weekly, monthly, annual or other
basis. The UGS Corporations acknowledge that each of the Managers' services are
not exclusive to any of the UGS Corporations and that each Manager will render
similar services to other persons and entities. The Managers and the UGS
Corporations understand that the UGS Corporations may, at times, engage one or
more investment bankers or financial advisers to provide services in addition
to, but not in lieu of, services provided by the Managers under this Agreement.
In providing services to the UGS Corporations, each Manager will act as an
independent contractor and it is expressly understood and agreed that this
Agreement is not intended to create, and does not create, any partnership,
agency, joint venture or similar relationship and that no party has the right or
ability to contract for or on behalf of any other party or to effect any
transaction for the account of any other party.

      2. Payment of Fees.

            (a) The UGS Corporations, jointly and severally, will pay to the
        Managers (or such affiliates as they may respectively designate), in
        consideration of the Managers providing the Financial Advisory Services,
        an aggregate transaction fee (the "Transaction Fee") in the amount of
        $30,000,000, such fee being payable at the closing of the Acquisition.
        The Transaction Fee shall be divided among the Managers as follows:

                                    Bain:            $10,000,000
                                    Silver Lake:     $10,000,000
                                    Warburg:         $10,000,000

            (b) During the Term, the UGS Corporations, jointly and severally,
        will pay to the Managers (or such affiliates as they may respectively
        designate), an aggregate annual periodic fee (the "Periodic Fee") of
        $3,000,000 in exchange for the ongoing services provided by the Managers
        under this Agreement, such fee being payable by the Company quarterly in
        advance on or before the start of each calendar quarter; provided,
        however, that the Periodic Fee for the period from the date hereof
        through June 30, 2004 shall be paid on or before June 30, 2004. The
        Periodic Fee shall be prorated for any partial period of less than three
        months. The Periodic Fee shall be divided among the Managers pro rata in
        proportion to the amount of Investor Shares held at the time by the
        investment funds affiliated with each Manager (provided that,

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        for purposes of this Agreement, (a) Bain Capital Integral Investors,
        LLC, Bain Capital VII Coinvestment Fund, LLC and BCIP TCV, LLC and their
        respective Affiliated Funds shall be deemed to be investment funds
        affiliated with Bain; (b) Silver Lake Partners, L.P., Silver Lake
        Investors, L.P., Silver Lake Technology Investors, L.L.C. and Integral
        Capital Partners VI, L.P. and their respective Affiliated Funds shall be
        deemed to be investment funds affiliated with Silver Lake; and (c)
        Warburg Pincus Private Equity VIII, L.P., Warburg Pincus International
        Partners, L.P., Warburg Pincus Netherlands Private Equity VIII I, C.V.,
        Warburg Pincus Netherlands Private Equity VIII II, C.V., Warburg Pincus
        Germany Private Equity VIII K.G., Warburg Pincus Netherlands
        International Partners I, C.V., Warburg Pincus Netherlands International
        Partners II, C.V. and Warburg Pincus Germany International Partners,
        K.G. and their respective Affiliated Funds shall be deemed to be
        investment funds affiliated with Warburg). In the preceding sentence,
        the term "Affiliated Funds" shall have the same meaning given to it in
        that certain Amended and Restated Investor Agreement dated May 24, 2004
        among Capital, Capital II, Holdings, Company and the Investors (as
        defined in the Amended and Restated Investor Agreement) (the "Amended
        and Restated Investor Agreement"). In this Agreement, the term "Investor
        Shares" means at any time all shares of capital stock of Capital,
        Capital II and Holdings (and any successor or survivor to Capital,
        Capital II or Holdings) held by the investment funds affiliated with the
        Managers.

            (c) During the Term, the Managers will advise the UGS Corporations
        in connection with financing, acquisition, disposition and change of
        control transactions involving the UGS Corporations or any of their
        respective direct or indirect subsidiaries (however structured), and the
        UGS Corporations, jointly and severally, will pay to the Managers (or
        such affiliates as they may respectively designate) an aggregate fee
        (the "Subsequent Fee") in connection with each such transaction equal to
        one percent (1%) of the gross transaction value of such transaction,
        such fee to be due and payable for the foregoing services at the closing
        of such transaction. Each Subsequent Fee shall be divided among the
        Managers pro rata in proportion to the amount of Investor Shares held at
        the time by the investment funds affiliated with each Manager.

      Each payment made pursuant to this Section 2 shall be paid by wire
transfer of immediately available federal funds to the accounts specified on
Schedule 1 hereto, or to such other account(s) as the Managers may specify to
the Company in writing prior to such payment.

      3. Term. This Agreement shall continue in full force and effect until
December 31, 2014; provided that this Agreement shall be automatically extended
each December 31 for an additional year unless the UGS Corporations or two of
the three Managers provide written notice of their desire not to automatically
extend the term of this Agreement to the other parties hereto at least 90 days
prior to such December 31; provided, however, that two of the three Managers may
cause this Agreement to terminate at any time. In the event of a termination of
this Agreement, the UGS Corporations, jointly and severally, shall pay each of
Bain, Silver Lake and Warburg (or such affiliates as they may respectively
designate) (i) all unpaid Periodic Fees (pursuant to Section 2(b) above),
Subsequent Fees (pursuant to Section 2(c) above) and expenses (pursuant to
Section 4(a) below) due with respect to periods prior to the date of termination
plus

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(ii) the net present value (using a discount rate equal to the then yield on
U.S. Treasury Securities of like maturity) of the Periodic Fees that would have
been payable with respect to the period from the date of termination until the
expiration date in effect immediately prior to such termination. Sections 4 and
5 of this Agreement shall survive any termination of this Agreement.

      4. Expenses; Indemnification.

            (a) Expenses. The UGS Corporations, jointly and severally, will pay
        on demand all Reimbursable Expenses. As used herein, "Reimbursable
        Expenses" means (i) all expenses incurred or accrued prior to the date
        on which the transactions contemplated by the Purchase Agreement are
        consummated (the "Closing Date") by any of the Managers or their
        affiliates in connection with this Agreement, the Acquisition or any
        related transactions, consisting of their respective out-of-pocket
        expenses for travel and other incidentals in connection with such
        transactions (including, without limitation, all air travel (by first
        class on a commercial airline or by charter, as determined by the
        appropriate Manager) and other travel related expenses) and the
        out-of-pocket expenses and the fees and charges of (A) Ropes & Gray LLP,
        (B) Simpson Thacher & Bartlett LLP (as counsel to Silver Lake and its
        affiliated funds), (C) Willkie Farr & Gallagher LLP, (D) Lovells,
        McFarlanes, Demarest & Almeida Advogados, Osler, Hoskin & Harcourt LLP,
        A & L Goodbody Solicitors, Asahi Koma Law Offices, Roger S. Chae Esq.
        and other foreign counsel to the Managers or their affiliates, (E) Ernst
        & Young LLP, (F) McKinsey & Company, and (G) any other consultants or
        advisors retained by the Managers with the agreement of all Managers in
        connection with such transactions, (ii) reasonable out-of-pocket
        expenses incurred from and after the Closing Date relating to their
        affiliated funds' investment in, the operations of, or the services
        provided by the Managers to, the UGS Corporations or any of their
        affiliates from time to time (including, without limitation, all air
        travel (by first class on a commercial airline or by charter, as
        determined by the appropriate Manager) and other travel related
        expenses), provided, however, that two of the three Managers must
        approve any such expenses other than routine out-of-pocket expenses,
        (iii) reasonable out-of-pocket legal expenses incurred by any Manager or
        its affiliates from and after Closing Date in connection with the
        enforcement of rights or taking of actions under this Agreement, the
        Subscription Agreement, the UGS Corporations' certificates of
        incorporation and bylaws, the Stockholders Agreement, the Participation
        and Registration Rights Agreement or the Amended and Restated Investor
        Agreement; provided that the reimbursement of expenses incurred by the
        Managers or their affiliates with respect to transactions pursuant to
        Section 2.1 of the Participation and Registration Rights Agreement
        (Right of Participation Expenses), Section 3.1 of the Participation and
        Registration Rights Agreement (Demand Right Expenses) and Section 3.2 of
        the Participation and Registration Rights Agreement (Piggyback Right
        Expenses),will be governed by, and subject to any limitations contained
        in, the applicable provisions of the Participation and Registration
        Rights Agreement and the reimbursement of expenses with respect to
        transactions pursuant to Section 4.1 of the Stockholders Agreement
        (Tag-Along Expenses), Section 4.2 of the Stockholders Agreement
        (Drag-Along Expenses) and Section 4.4 of the Stockholders Agreement
        (Right of First Offer Expenses) will be

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        governed by, and subject to any limitations contained in, the applicable
        provisions of the Stockholders Agreement and (iv) expenses incurred from
        and after the Closing Date by the Managers and their affiliates which at
        least two of the three Managers agree are properly allocable to the UGS
        Corporations under this Agreement. As used in this Agreement,
        Subscription Agreement" means the Subscription Agreement dated May 24,
        2004 among Capital, Capital II, Holdings, Company and the Subscribers
        (as defined in the Subscription Agreement), "Stockholders Agreement"
        means the Stockholders Agreement dated May 24, 2004 among Capital,
        Capital II, Holdings, Company and certain stockholders of Capital and
        Capital II and "Participation and Registration Rights Agreement " means
        the Participation and Registration Rights Agreement dated May 24, 2004
        among Capital, Capital II, Holdings, Company and certain stockholders of
        Capital and Capital II.

              (b) Indemnity and Liability. The UGS Corporations, jointly and
        severally, will indemnify, exonerate and hold each of the Managers, and
        each of their respective partners, shareholders, members, affiliates,
        directors, officers, fiduciaries, managers, controlling Persons,
        employees and agents and each of the partners, shareholders, members,
        affiliates, directors, officers, fiduciaries, managers, controlling
        Persons, employees and agents of each of the foregoing (collectively,
        the "Indemnitees") free and harmless from and against any and all
        actions, causes of action, suits, claims, liabilities, losses, damages
        and costs and out-of-pocket expenses in connection therewith (including
        reasonable attorneys' fees and expenses) incurred by the Indemnitees or
        any of them before or after the date of this Agreement (collectively,
        the "Indemnified Liabilities"), as a result of, arising out of, or in
        any way relating to (i) this Agreement, the Acquisition, any transaction
        to which a UGS Corporation is a party or any other circumstances with
        respect to a UGS Corporation (other than any such Indemnified
        Liabilities to the extent such Indemnified Liabilities arise out of any
        breach of the Amended and Restated Investor Agreement, the Stockholders
        Agreement or the Subscription Agreement by such Indemnitee or its
        affiliated or associated Indemnitees or other related persons or any
        transaction entered into after the Closing Date or other circumstances
        existing after the Closing Date with respect to which the interests of
        such Indemnitee or its affiliated or associated Indemnitees were adverse
        to the interests of the UGS Corporations or (ii) operations of, or
        services provided by any of the Managers to, the UGS Corporations, or
        any of their affiliates from time to time (including but not limited to
        any indemnification obligations assumed or incurred by any Indemnitee to
        or on behalf of the Seller, or any of its accountants or other
        representatives, agents or affiliates); provided that the foregoing
        indemnification rights shall not be available to the extent that any
        such Indemnified Liabilities arose on account of such Indemnitee's gross
        negligence or willful misconduct, and further provided that, if and to
        the extent that the foregoing undertaking may be unavailable or
        unenforceable for any reason, the UGS Corporations hereby agree to make
        the maximum contribution to the payment and satisfaction of each of the
        Indemnified Liabilities which is permissible under applicable law. For
        purposes of this Section 4(b), none of the circumstances described in
        the limitations contained in the two provisos in the immediately
        preceding sentence shall be deemed to apply absent a final
        non-appealable judgment of a court of competent jurisdiction to such
        effect, in which case to the extent any

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        such limitation is so determined to apply to any Indemnitee as to any
        previously advanced indemnity payments made by the UGS Corporations,
        then such payments shall be promptly repaid by such Indemnitee to the
        UGS Corporations. The rights of any Indemnitee to indemnification
        hereunder will be in addition to any other rights any such person may
        have under any other agreement or instrument referenced above or any
        other agreement or instrument to which such Indemnitee is or becomes a
        party or is or otherwise becomes a beneficiary or under law or
        regulation. None of the Indemnitees shall in any event be liable to the
        UGS Corporations or any of their affiliates for any act or omission
        suffered or taken by such Indemnitee that does not constitute gross
        negligence or willful misconduct. If the Indemnitees related to each of
        the three Managers are similarly situated with respect to their
        interests in connection with a matter that may be an Indemnified
        Liability and such Indemnified Liability is not based on a Third-Party
        Claim, the Indemnitees may enforce their rights pursuant to this Section
        4(b) with respect to such matter only with the consent of at least two
        of the three Managers. In this Agreement, "Person" means any individual
        or corporation, association, partnership, limited liability company,
        joint venture, joint stock or other company, business trust, trust,
        organization, or other entity of any kind. A "Third-Party Claim" means
        any (i) claim brought by a Person other than a UGS Corporation, a
        Manager or any indemnified Person related to a Manager and (ii) any
        derivative claim brought in the name of a UGS Corporation that is
        initiated by a Person other than a Manager or any indemnified Person
        related to a Manager.

      5. Disclaimer and Limitation of Liability; Opportunities.

            (a) Disclaimer; Standard of Care. None of the Managers makes any
        representations or warranties, express or implied, in respect of the
        services to be provided by any Manager hereunder. In no event shall any
        of the Managers be liable to the UGS Corporations or any of their
        affiliates for any act, alleged act, omission or alleged omission that
        does not constitute gross negligence or willful misconduct of such
        Manager as determined by a final, non-appealable determination of a
        court of competent jurisdiction.

            (b) Freedom to Pursue Opportunities. In recognition that each
        Manager and its respective Indemnitees currently have, and will in the
        future have or will consider acquiring, investments in numerous
        companies with respect to which each Manager or its respective
        Indemnitees may serve as an advisor, a director or in some other
        capacity, and in recognition that each Manager and its respective
        Indemnitees have myriad duties to various investors and partners, and in
        anticipation that the UGS Corporations, on the one hand and each of the
        Managers (or one or more affiliates, associated investment funds or
        portfolio companies), on the other hand, may engage in the same or
        similar activities or lines of business and have an interest in the same
        areas of corporate opportunities, and in recognition of the benefits to
        be derived by the UGS Corporations hereunder and in recognition of the
        difficulties which may confront any advisor who desires and endeavors
        fully to satisfy such advisor's duties in determining the full scope of
        such duties in any particular situation, the provisions of this Section
        5(b) are set forth to regulate, define and guide the conduct of certain

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        affairs of the UGS Corporations as they may involve such Manager. Except
        as a Manager may otherwise agree in writing after the date hereof:

                (i) Such Manager and its respective Indemnitees shall have the
            right: (A) to directly or indirectly engage in any business
            (including, without limitation, any business activities or lines of
            business that are the same as or similar to those pursued by, or
            competitive with, the Company and its subsidiaries, (B) to directly
            or indirectly do business with any client or customer of the Company
            and its subsidiaries, (C) to take any other action that such Manager
            believes in good faith is necessary to or appropriate to fulfill its
            obligations as described in the first sentence of this Section 5(b),
            and (D) not to present potential transactions, matters or business
            opportunities to the UGS Corporations or any of their subsidiaries,
            and to pursue, directly or indirectly, any such opportunity for
            itself, and to direct any such opportunity to another person.

                (ii) Such Manager and its respective Indemnitees shall have no
            duty (contractual or otherwise) to communicate or present any
            corporate opportunities to the UGS Corporations or any of their
            affiliates or to refrain from any actions specified in Section
            5(b)(i), and the UGS Corporations, on their own behalf and on behalf
            of their affiliates, hereby renounce and waive any right to require
            such Manager or any of its Indemnitees to act in a manner
            inconsistent with the provisions of this Section 5(b).

                (iii) None of such Manager, nor any of its Indemnitees shall be
            liable to the UGS Corporations or any of their affiliates for breach
            of any duty (contractual or otherwise) by reason of any activities
            or omissions of the types referred to in this Section 5(b) or of any
            such person's participation therein.

            (c) Limitation of Liability. In no event will any of the Managers or
        any of their Indemnitees be liable to the UGS Corporations or any of
        their affiliates or either of the other Managers or their Indemnitees
        for any indirect, special, incidental or consequential damages,
        including, without limitation, lost profits or savings, whether or not
        such damages are foreseeable, or for any third party claims (whether
        based in contract, tort or otherwise), relating to the services to be
        provided by the Managers hereunder.

      6. Assignment, etc. Except as provided below, none of the parties hereto
shall have the right to assign this Agreement without the prior written consent
of each of the other parties. Notwithstanding the foregoing, (a) any Manager may
assign all or part of its rights and obligations hereunder to any of its
respective affiliates which provides services similar to those called for by
this Agreement, in which event such Manager shall be released of its rights to
fees under Section 2 and reimbursement of expenses under Section 4(a) and all of
its obligations hereunder and (b) the provisions hereof for the benefit of
Indemnitees of the Managers shall inure to the benefit of such Indemnitees and
their successors and assigns.

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      7. Amendments and Waivers. No amendment or waiver of any term, provision
or condition of this Agreement shall be effective, unless in writing and
executed by two of the three Managers and the UGS Corporations; provided, that
any amendment that would increase any fee pursuant to this Agreement shall
require the written consent of each of the Managers and the UGS Corporations and
any amendment or waiver that discriminates against a Manager will require the
consent of such Manager; and provided, further that any Manager may waive any
portion of any fee to which it is entitled pursuant to this Agreement, and,
unless otherwise directed by such Manager, such waived portion shall revert to
the UGS Corporations. No waiver on any one occasion shall extend to or effect or
be construed as a waiver of any right or remedy on any future occasion. No
course of dealing of any person nor any delay or omission in exercising any
right or remedy shall constitute an amendment of this Agreement or a waiver of
any right or remedy of any party hereto.

        8. Governing Law; Jurisdiction.

            (a) Choice of Law. This Agreement and all matters arising under or
          related to this Agreement shall be governed by and construed in
          accordance with the domestic substantive laws of the State of Delaware
          without giving effect to any choice or conflict of law provision or
          rule that would cause the application of the domestic substantive laws
          of any other jurisdiction.

            (b) Consent to Jurisdiction. Each of the parties agrees that all
          actions, suits or proceedings arising out of, based upon or relating
          to this Agreement or the subject matter hereof shall be brought and
          maintained exclusively in the federal and state courts of the State of
          Delaware. Each of the parties hereto by execution hereof (i) hereby
          irrevocably submits to the jurisdiction of the federal and state
          courts in the State of Delaware for the purpose of any action, suit or
          proceeding arising out of or based upon this Agreement or the subject
          matter hereof and (ii) hereby waives to the extent not prohibited by
          applicable law, and agrees not to assert, by way of motion, as a
          defense or otherwise, in any such action, suit or proceeding, any
          claim that it is not subject personally to the jurisdiction of the
          above-named courts, that it is immune from extraterritorial injunctive
          relief or other injunctive relief, that its property is exempt or
          immune from attachment or execution, that any such action, suit or
          proceeding may not be brought or maintained in one of the above-named
          courts, that any such action, suit or proceeding brought or maintained
          in one of the above-named courts should be dismissed on grounds of
          forum non conveniens, should be transferred to any court other than
          one of the above-named courts, should be stayed by virtue of the
          pendency of any other action, suit or proceeding in any court other
          than one of the above-named courts, or that this Agreement or the
          subject matter hereof may not be enforced in or by any of the
          above-named courts. Notwithstanding the foregoing, to the extent that
          any party hereto is or becomes a party in any litigation in connection
          with which it may assert indemnification rights set forth in this
          Agreement, the court in which such litigation is being heard shall be
          deemed to be included in clause (i) above. Each of the parties hereto
          hereby consents to service of process in any such suit, action or
          proceeding in any manner permitted by the laws of the State of
          Delaware, agrees that service of process by registered or certified
          mail, return receipt requested, at the address specified in or
          pursuant to Section 10 is

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          reasonably calculated to give actual notice and waives and agrees not
          to assert by way of motion, as a defense or otherwise, in any such
          action, suit or proceeding any claim that service of process made in
          accordance with Section 10 does not constitute good and sufficient
          service of process. The provisions of this Section 8 shall not
          restrict the ability of any party to enforce in any court any judgment
          obtained in a federal or state court of the State of Delaware.

            (c) Waiver of Jury Trial. To the extent not prohibited by applicable
          law which cannot be waived, each of the parties hereto hereby waives,
          and covenants that it will not assert (whether as plaintiff,
          defendant, or otherwise), any right to trial by jury in any forum in
          respect of any issue, claim, demand, cause of action, action, suit or
          proceeding arising out of or based upon this Agreement or the subject
          matter hereof, in each case whether now existing or hereafter arising
          and whether in contract or tort or otherwise. Each of the parties
          hereto acknowledges that it has been informed by each other party that
          the provisions of this Section 8(c) constitute a material inducement
          upon which such party is relying and will rely in entering into this
          Agreement and the transactions contemplated hereby. Any of the parties
          hereto may file an original counterpart or a copy of this Agreement
          with any court as written evidence of the consent of each of the
          parties hereto to the waiver of its right to trial by jury.

      9. Entire Agreement. This Agreement contains the entire understanding of
the parties with respect to the subject matter hereof and supersedes any prior
communication or agreement with respect thereto.

      10. Notice. All notices, demands, and communications required or permitted
under this Agreement shall be in writing and shall effective if served upon such
other party and such other party's copied persons as specified below to the
address set forth for it below (or to such other address as such party shall
have specified by notice to each other party) if (i) delivered personally, (ii)
sent and received by facsimile or (iii) sent by certified or registered mail or
by Federal Express, DHL, UPS or any other comparably reputable overnight courier
service, postage prepaid, to the appropriate address as follows:

      If to a UGS Corporation, to it:

             c/o UGS Corp.
             13690 Riverport Drive
             Maryland Heights, MO 63043
             Facsimile: (313) 264-8913
             Attention: Anthony J. Affuso

      with a copy to:

             Ropes & Gray LLP
             One International Place
             Boston, Massachusetts 02110
             Facsimile: (617) 951-7050

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             Attention:  Alfred O. Rose, Esq.

      If to Bain, to it:

             c/o Bain Capital, LLC
             600 Montgomery Street, 33rd Floor
             San Francisco, California  94111
             Facsimile: (415) 352-5010
             Attention: Andrew Balson

      with a copy to:

             Ropes & Gray LLP
             One International Place
             Boston, Massachusetts 02210
             Facsimile: (617) 951-7050
             Attention: R. Newcomb Stillwell, Esq.

      If to Silver Lake, to it:

             c/o Silver Lake Partners
             2725 Sand Hill Road, Ste. 150
             Menlo Park, California  94025
             Facsimile: (650) 234-2593
             Attention: Kenneth Y. Hao

      with a copy to:

             Simpson Thacher & Bartlett LLP
             3330 Hillview Avenue
             Palo Alto, California 94304
             Facsimile: (650) 251-5002
             Attention: Richard Capelouto, Esq.

      If to Warburg, to:

             Warburg Pincus LLC
             466 Lexington Ave
             New York, NY 10017
             Facsimile: (212) 716-5040
             Attention: Gregory F. Back

      with a copy to:

             Willkie Farr & Gallagher LLP

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             787 Seventh Avenue
             New York, NY 10019-6099
             Facsimile: (212) 728-8111
             Attention: Gordon R. Caplan, Esq.

            Unless otherwise specified herein, such notices or other
      communications shall be deemed effective, (a) on the date received, if
      personally delivered or sent by facsimile during normal business hours,
      (b) on the business day after being received if sent by facsimile other
      than during normal business hours, (c) one business day after being sent
      by Federal Express, DHL or UPS or other comparably reputable delivery
      service and (d) five business days after being sent by registered or
      certified mail. Each of the parties hereto shall be entitled to specify a
      different address by giving notice as aforesaid to each of the other
      parties hereto.

      11. Severability. If in any proceedings a court shall refuse to enforce
any provision of this Agreement, then such unenforceable provision shall be
deemed eliminated from this Agreement for the purpose of such proceedings to the
extent necessary to permit the remaining provisions to be enforced. To the full
extent, however, that the provisions of any applicable law may be waived, they
are hereby waived to the end that this Agreement be deemed to be valid and
binding agreement enforceable in accordance with its terms, and in the event
that any provision hereof shall be found to be invalid or unenforceable, such
provision shall be construed by limiting it so as to be valid and enforceable to
the maximum extent consistent with and possible under applicable law.

      12. Counterparts. This Agreement may be executed in any number of
counterparts and by each of the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which
together shall constitute one and the same agreement.

                  [Remainder of Page Intentionally Left Blank]

                                      -11-
<PAGE>

         IN WITNESS WHEREOF, each of the parties has caused this Agreement to be
executed on its behalf as an instrument under seal as of the date first above
written by its officer or representative thereunto duly authorized.

THE COMPANY:                                   UGS CORP.

                                                             *
                                               _________________________________
                                               Douglas E. Barnett
                                               Executive Vice President

CAPITAL:                                       UGS CAPITAL CORP.

                                                             *
                                               ________________________________
                                               Douglas E. Barnett
                                               Executive Vice President

CAPITAL II:                                    UGS CAPITAL CORP. II

                                                             *
                                               ________________________________
                                               Douglas E. Barnett
                                               Executive Vice President

HOLDINGS:                                      UGS HOLDINGS, INC.

                                                             *
                                               ________________________________
                                               Douglas E. Barnett
                                               Executive Vice President

      The signature appearing immediately below shall serve as a signature at
each place with a "*" on this page:

                                               /s/ Douglas E. Barnett
                                               --------------------------------
                                               Douglas E. Barnett
                                               Executive Vice President

Management Agreement

<PAGE>

BAIN:                                      BAIN CAPITAL PARTNERS, LLC

                                           By: Bain Capital LLC, its sole member

                                           /s/ Andrew Balson
                                           ------------------------------------
                                           Andrew Balson
                                           Managing Director

SILVER LAKE:                               SILVER LAKE TECHNOLOGY
                                           MANAGEMENT, L.L.C.

                                           /s/ Kenneth Y. Hao
                                           ------------------------------------
                                           Kenneth Y. Hao
                                           Managing Director

Management Agreement

<PAGE>

WARBURG:                                   WARBURG PINCUS LLC

                                           /s/ Gregory F. Back
                                           ------------------------------
                                           Gregory F. Back
                                           Managing Director

Management Agreement<PAGE>

                                                                    Exhibit 10.6

                                AGREEMENT BETWEEN
                            ANTHONY J. AFFUSO AND UGS

This Agreement between UGS PLM Solutions Inc., a Delaware Corporation, and its
successors and assigns ("UGS"), and Anthony J. Affuso ("Executive") is entered
into effective as of March 1, 2004.

1.    CURRENT POSITION:

      President and Chief Executive Officer, UGS.

2.    ANNUAL SALARY:

      Executive's current annual salary is $500,000, payable in substantially
      equal installments on a semimonthly basis in accordance with UGS' regular
      payroll practice. Executive's base salary shall be reviewed on an annual
      basis.

3.    BONUS:

      Effective as of January 1, 2004, Executive shall participate in UGS'
      executive annual bonus plan and have an annual performance bonus target
      opportunity of at least 100% of Executive's base salary.

4.    BENEFITS:

      In the event Executive remains employed by UGS after ceasing to
      participate in and accruing benefits under some or all benefit plans of
      Electronic Data Systems Corporation ("EDS"), Executive and his eligible
      dependents shall be offered the opportunity to participate in and/or
      receive employee related benefits on terms not less favorable to Executive
      than the terms generally offered to other executives of UGS (except as
      expressly provided for in this Agreement, Executive acknowledges UGS shall
      not be obligated to offer any such replacement benefits).

5.    EQUITY BASED INCENTIVE COMPENSATION:

      In the event UGS develops and adopts an equity award program, Executive
      shall be eligible to participate in such program on the same basis as
      other UGS executives.

6.    EXPENSE REIMBURSEMENT AND ALLOWANCES:

      Executive shall be entitled to receive prompt reimbursement for all
      reasonable business expenses incurred by him in accordance with UGS'
      policies, practices and procedures.

7.    SEPARATION BENEFITS:

<PAGE>

      (a) If, during the Term of this Agreement, Executive is involuntarily
      terminated by UGS without Cause or he voluntarily terminates his
      employment with UGS for Good Reason, Executive shall be entitled to
      receive from UGS within fourteen (14) days of his separation, in lieu of
      receiving any other separation and/or severance related payments or
      benefits from UGS, the following

            (1) a lump sum payment equal to Executive's accrued but unpaid base
            salary through the date of termination, less all applicable
            deductions;

            (2) a lump sum payment equal to any declared but unpaid bonus(es)
            attributable to performance in prior years and any unpaid Retention
            Bonus amounts to which Executive is entitled pursuant to Paragraph 8
            or 9 of this Agreement, less all applicable deductions;

            (3) a lump sum payment equivalent to 2.99 times Executive's final
            annual base salary, less all applicable deductions;

            (4) a lump sum payment equivalent to 2.99 times Executives annual
            performance bonus target for the year in which Executive separates,
            less all applicable deductions; and

            (5) all deferred and restricted UGS stock awards, stock units,
            additional discretionary credits, and/or stock options awarded to
            Executive that remain outstanding on the date of termination shall
            immediately vest, shall immediately be freed of any restrictions
            regarding their sale or transfer (other than any such restrictions
            arising by operation of law or pursuant to the terms of any
            applicable deferral plan), and with regard to all stock options
            (whether previously vested or accelerated pursuant to this
            provision), they shall be exercisable for a period of two (2) years
            from the date of Executive's separation.

      (b) Executive's receipt of the separation benefits described in Paragraph
      7(a) of this Agreement is contingent upon Executive signing a separation
      agreement (which will include amongst its other terms an agreement by
      Executive to release and/or waive any and all existing claims he may have
      against UGS) deemed appropriate by UGS substantially in the form attached
      hereto as "Exhibit A" ("Separation Agreement"). Executive's receipt of the
      separation benefits described in Paragraph 7(a) is further contingent upon
      Executive not revoking his signature within seven (7) days of signing the
      Separation Agreement.

8.    PRIVATE EQUITY SALE

      In the event of a Private Equity Sale during the Term of this Agreement,
      and provided Executive is employed by UGS at the time of such Private
      Equity Sale, Executive shall be entitled to receive the following:

      (a) a "Private Equity Retention Bonus", the amount of which is dependent
      upon both the percent of UGS that is sold and the final sale price of UGS.
      In the event 100% of the outstanding voting securities of UGS are sold
      pursuant to a Private Equity Sale, the actual

                                      -2-
<PAGE>

      amount of the Private Equity Retention Bonus shall be determined by
      referring to Exhibit B. In the event less than 100% of the outstanding
      voting securities of UGS are sold pursuant to a Private Equity Sale, the
      Final Sale Price amounts in Exhibit B shall be proportionately reduced
      based upon the percent of the outstanding voting securities of UGS
      actually sold.(1) Such Private Equity Retention Bonus shall be payable as
      follows: twenty-five percent (25%) of such bonus, less all applicable
      deductions, shall be paid within 14 days of the Private Equity Sale;
      thirty-seven-and-a-half percent (37.5%) of such bonus, less all applicable
      deductions, shall be paid on or behalf the one year anniversary of the
      Private Equity Sale; and

      (b) eligibility to participate in a UGS supplemental executive retirement
      plan pursuant to which Executive shall receive from UGS a supplemental
      executive retirement benefit calculated pursuant to terms identical to
      those of the EDS Supplemental Executive Retirement Plan ("SERP") in effect
      as of the date of the Private Equity Sale, recognizing Executive's pay and
      service with EDS and UGS through the Term of this Agreement (or through
      Executive's separation from employment, if earlier). It is expressly
      understood by Executive that, pursuant to the term of EDS' SERP, EDS shall
      remain solely responsible for the payment of any supplemental executive
      retirement benefit accruing to Executive prior to the Private Equity Sale,
      and that UGS shall be solely responsible for the payment of any
      supplemental executive retirement benefit accruing to Executive on or
      after the Private Equity Sale.(2)

9.    INITIAL PUBLIC OFFERING

      (a) In the event of an IPO during the Term of this Agreement, and provided
      Executive is employed by UGS at the time of the IPO, Executive shall be
      entitled to receive the following:

            (1) a payment in the amount of $200,000 ("IPO Retention Bonus"),
            less applicable deductions, to be paid within 14 days of the IPO;

            (2) 450,000 options to purchase shares of UGS common stock at the
            IPO price, which options shall vest evenly over four (4) years
            following the grant (25% each year) and have a ten (10) year term;
            and

            (3) effective as of the IPO, Executive's annual base salary shall be
            increased to $650,000.

---------------------------
(1) In the event less than 100% of the outstanding voting securities of UGS are
sold, each of the Final Sale Price amounts in Exhibit B shall be multiplied by
the final percent of outstanding voting securities of UGS actually sold. For
example, assuming 90% of the outstanding voting securities of UGS are sold for
$1.71 billion, the Final Sale Price threshold of > or = $1.80 billion will be
reduced to > or = $1.62 billion ($1.80 billion x 90%). Given the above example,
Executive would receive a Private Equity Retention Bonus of $1,000,000.

(2) For purposes of clarification, a demonstrative example of the retirement
benefits Executive would be eligible to receive in light of Paragraph 8(b) or
Paragraph 9(b) of this Agreement is attached as Exhibit "C". Such demonstrative
example assumes Executive ceases to accrue EDS retirement benefits on May 30,
2004, remains employed with UGS through February 29, 2008, and commences benefit
payments on March 1, 2008.

                                      -3-
<PAGE>

      (b) If, subsequent to an IPO and during the Term of this Agreement, EDS
      ceases to own 80% or more of the voting stock of UGS, and provided
      Executive is employed by UGS at such time, Executive shall be eligible to
      participate in a UGS supplemental executive retirement plan pursuant to
      which Executive shall receive from UGS a supplemental executive retirement
      benefit calculated pursuant to terms identical to those of the EDS SERP in
      effect as of the date EDS ceased to own 80% or more of the voting stock of
      UGS, recognizing Executive's pay and service with EDS and UGS through the
      Term of this Agreement (or through Executive's separation from employment,
      if earlier). It is expressly understood by Executive that, pursuant to the
      terms of EDS' SERP, EDS shall remain solely responsible for the payment of
      any supplemental executive retirement benefit accruing to Executive prior
      to the time EDS ceased to own 80% or more of the voting stock of UGS.

      (c) The terms of this Paragraph 9 shall become null and void in the event
      a Private Equity Sale occurs prior to an IPO.

10.   EXCISE TAXES

      (a) If any Payment is subject to the Excise Tax, then UGS shall pay the
      Executive a Gross-Up Payment (regardless of whether the Executive's
      employment has terminated). Notwithstanding the foregoing, if the
      Parachute Value of all Payments does not exceed 110% of the Safe Harbor
      Amount, then UGS shall not pay the Executive a Gross-Up Payment, and the
      Payments due under this Agreement shall be reduced so that the Parachute
      Value of all Payments, in the aggregate, equals the Safe Harbor amount;
      provided, that if even after all Payments due hereunder are reduced to
      zero, the Parachute Value of all Payments would still exceed the Safe
      Harbor Amount, then no reduction of any Payments shall be made. The
      reduction of the Payments due hereunder, if applicable, shall be made by
      first reducing the payments under Paragraph 7(a)(3) and/or (4), in that
      order, unless an alternative method of reduction is elected by the
      Executive, subject to approval by UGS, and in any event shall be made in
      such a manner as to maximize the economic present value of all Payments
      actually made to the Executive, determined by the Accounting Firm as of
      the date of the change of control for purposes of Section 280G of the Code
      using the discount rate required by Section 280(d)(4) of the Code.

      (b) All determinations required to be made under this Paragraph 10,
      including whether and when Gross-Up Payments are required and the amount
      of such Gross-Up Payments, whether and in what manner any Payments are to
      be reduced pursuant to the second sentence of Paragraph 10(a), and the
      assumptions to be utilized in arising at such determinations, shall be
      made by the Accounting Firm, and shall be binding upon UGS and the
      Executive, except to the extent the Internal Revenue Service or a court of
      competent jurisdiction makes an inconsistent final and binding
      determination. The Accounting Firm shall provide detailed supporting
      calculations both to UGS and the Executive within 15 business days after
      receiving notice from the Executive that there has been a Payment or such
      earlier time as may be requested by UGS. All fees and expenses of the
      Accounting Firm shall be borne solely by UGS. Any Gross-Up Payment that
      becomes due pursuant to this Paragraph 10 shall be paid by UGS to the
      Executive

                                      -4-
<PAGE>

      within five days of the receipt of the Accounting Firm's determination,
      or, if later, at least 20 business days before the Executive is obligated
      to pay the related Excise Tax. As a result of the uncertainty in the
      application of Section 4999 of the Code at the time of the initial
      determination by the Accounting Firm hereunder, it is possible that
      Gross-Up Payments that will not have been made by UGS should have been
      made (an "Underpayment"). In the event the Accounting Firm determines that
      there has been an Underpayment or the Executive is required to make a
      payment of any Excise Tax as a result of a claim described in Paragraph
      10(c), then the Accounting Firm shall determine the amount of the
      Underpayment that has occurred and any such Underpayment shall be promptly
      paid by UGS to or for the benefit of the Executive.

      (c) The Executive shall notify UGS in writing of any claim by the Internal
      Revenue Service that, if successful, would require the payment by UGS of a
      Gross-Up Payment. Such notification shall be given as soon as practicable,
      but no later than 10 business days after the Executive is informed in
      writing of such claim. The Executive shall apprise UGS of the nature of
      such claim and the date on which such claim is requested to be paid. The
      Executive shall not pay such claim prior to the expiration of the 30-day
      period following the date on which the Executive gives such notice to UGS
      (or such shorter period ending on the date that any payment of taxes with
      respect to such claim is due). If UGS notifies the Executive in writing
      prior to the expiration of such period that UGS desires to contest such
      claim, the Executive shall

            (1) give UGS any information reasonably requested by UGS relating to
            such claim,

            (2) take such action in connection with contesting such claim as UGS
            shall reasonably request in writing from time to time, including
            without limitation accepting legal representation with respect to
            such claim by an attorney reasonably selected by UGS,

            (3) cooperate with UGS in good faith in order to effectively to
            contest such claim, and

            (4) permit UGS to participate in any proceedings relating to such
            claim; provided, however, that UGS shall bear and pay directly all
            costs and expenses (including additional interest and penalties)
            incurred in connection with such contest, and shall indemnify and
            hold the Executive harmless, on an After-Tax basis, for an Excise
            Tax or Taxes imposed as a result of such representation and payment
            of costs and expenses. Without limitation on the foregoing
            provisions of this Paragraph 10(c), UGS shall control all
            proceedings taken in connection with such contest, and, at its sole
            discretion, may pursue or forgo any and all administrative appeals,
            proceedings, hearings and conferences with the applicable taxing
            authority in respect of such claim and may, at its sole discretion,
            either direct the Executive to pay the Taxes claimed and sue for a
            refund or contest the claim in any permissible manner, and the
            Executive agrees to prosecute such contest to a determination before
            any administrative tribunal, in a court of initial jurisdiction and
            in one or more appellate courts, as UGS shall determine;

                                      -5-
<PAGE>

            provided, however, that, if UGS directs the Executive to pay such
            claim and sue for a refund, UGS shall advance the amount of such
            payment to the Executive, on an interest-free basis, and shall
            indemnify and hold the Executive harmless, on an After-Tax basis,
            from any Excise Tax or Taxes imposed with respect to such advance or
            with respect to any imputed income in connection with such advance;
            and provided, further, that any extension of the relevant statute of
            limitations is limited solely to such contested amount. Furthermore,
            UGS' control of the contest shall be limited to issues with respect
            to which the Gross-Up Payment would be payable hereunder, and the
            Executive shall be entitled to settle or contest, as the case may
            be, any other issue raised by the Internal Revenue Service or any
            other taxing authority.

      (d) If, at any time after receiving a Gross-Up Payment or an advance
      pursuant to Paragraph 10(c), the Executive receives any refund of the
      associated Excise Tax, the Executive shall (subject to UGS' having
      complied with the requirements of Paragraph 10(c), if applicable) promptly
      pay to UGS the amount of such refund, together with any interest paid or
      credited thereon net of all Taxes applicable thereof. If, after the
      Executive receives an advance pursuant to Paragraph 10(c), a determination
      is made that the Executive is not entitled to any refund with respect to
      such claim and UGS does not notify the Executive in writing of its intent
      to contest such denial of refund prior to the expiration of 30 days after
      such determination, then such advance shall be forgiven and shall not be
      required to be repaid, and the amount of any Gross-Up Payment owed to the
      Executive shall be reduced (but not below zero) by the amount of such
      advance.

      (e) Notwithstanding any other provision of this Paragraph 10, UGS may, in
      its sole discretion, withhold and pay over to the Internal Revenue Service
      or any other applicable taxing authority, for the benefit of the
      Executive, all or any portion of any Gross-Up Payment, and the Executive
      hereby consents to such withholding.

      (f) Any other liability for unpaid or unwithheld Excise Taxes, other than
      those described above, is borne exclusively by UGS, in accordance with
      Code Section 3403. The assumption of such liability by UGS shall not in
      any manner relieve UGS of any of its obligations under Paragraph 10 of the
      Agreement.

11.   DEFINITIONS

      The following terms shall have the meanings set forth below for purposes
      of this Agreement.

            "Accounting Firm" means any law firm or the certified public
            accounting firm among those regularly consulted by UGS during the
            twelve-month period prior to the date of the change of control for
            purposes of Section 280G of the Code.

            "After-Tax" means after taking in account all applicable Taxes and
            Excise Tax.

            "Cause" means the Executive has (i) been convicted of, or pleaded
            guilty to, a felony involving theft or moral turpitude; (ii)
            willfully and materially failed to follow EDS' and/or UGS' lawful
            and appropriate policies, directive or orders

                                      -6-
<PAGE>

            applicable to employees holding comparable positions that resulted
            in significant harm to either EDS or UGS (recognizing that Executive
            shall not be obligated to follow policies, directives or orders that
            are unethical or would require Executive to violate his duties
            and/or obligations to EDS and/or UGS, their Board of Directors, or
            their shareholders); (iii) willfully and intentionally destroyed or
            stolen EDS and/or UGS property or falsified EDS and/or UGS
            documents; (iv) willfully and materially violated the EDS Code of
            Business Conduct and/or applicable UGS rules or procedures that
            resulted in significant harm to EDS and/or UGS; or (v) engaged in
            conduct that constitutes willful gross neglect with respect to
            employment duties that resulted in significant harm to EDS and/or
            UGS. For purposes of the definition of Cause, no act or failure to
            act on the part of the Executive shall be considered "willful"
            unless it is done, or omitted to be done, by the Executive
            intentionally, in bad faith and without reasonable belief that the
            Executive's action or omission was in the best interest of EDS
            and/or UGS.

            "Code" means the Internal Revenue Code of 1986, as amended.

            "Excise Tax" means the excise tax imposed by Section 4999 of the
            Code, together with any interest or penalties imposed with respect
            to such excise tax.

            "Good Reason" means: (i) reducing Executive's base salary or target
            bonus opportunity, excluding a company-wide reduction in base
            salaries or target bonus opportunities that are generally applicable
            to senior executives of UGS, or an inadvertent error not made in bad
            faith and which is remedied promptly by UGS after receipt of notice
            thereof by Executive; (ii) requiring Executive to be based at any
            office or location that is more that fifty (50) miles from
            Executive's principal work location as of the effective date of this
            Agreement; or (iii) removing Executive from either the position of
            President or Chief Executive Officer of UGS.

            "Gross-Up Payment" means an amount such that, after payment by the
            Executive of all Taxes (including any interest or penalties imposed
            with respect to such taxes), including, without limitation, (i) any
            income and FICA taxes (and any interest and penalties imposed with
            respect thereto) and (ii) Excise Tax imposed upon the Gross-Up
            Payment, the Executive retains an amount of the Gross-Up Payment
            equal to the Excise Tax imposed upon the Payments. For purposes of
            determining the amount of the Gross-Up Payment, the Executive shall
            be deemed to pay federal income taxes at the highest marginal rate
            of federal income taxation in the calendar year in which the
            Gross-Up Payment is to be made, and state and local income taxes at
            the highest marginal rate of taxation in either the state and
            locality of the Executive's place of employment at the time of
            Change in Control or in the state and locality of residence at the
            time or times of payment, as applicable, net of the maximum
            reduction in federal income taxes that could be obtained from the
            deduction of the state and local taxes.

                                      -7-
<PAGE>

            "Initial Public Offering" or "IPO" means the closing date of the
            offering and sale of equity securities of UGS pursuant to a
            registration statement that has been filed with, and declared
            effective by, the Securities and Exchange Commission. An IPO shall
            not include any transaction involving the offering and sale of
            equity securities of UGS following such time as EDS shall have
            ceased to own 100% of the capital stock of the Company. For purposes
            of this Agreement, there shall not be more than one IPO.

            "Parachute Value" of a Payment means the present value as of the
            date of the change of control for purposes of Section 280G of the
            Code of the portion of such Payment that constitutes a "parachute
            payment" under Section 280(b)(2) of the Code, as determined by the
            Accounting Firm for purposes of determining whether and to what
            extent the Excise Tax will apply to such Payment.

            "Payment" means any payment or distribution in the nature of
            compensation (within the meaning of Section 280G(b)(2) of the Code)
            to or for the benefit of the Executive, whether paid or payable
            pursuant to this Agreement or otherwise.

            "Private Equity Sale" shall mean the closing date of the transaction
            pursuant to which EDS sells greater than 50% of the outstanding
            voting securities of UGS, other than in connection with an Initial
            Public Offering. For purposes of this Agreement, there shall not be
            more than one Private Equity Sale.

            "Safe Harbor Amount" means 2.99 times the Executive's "base amount,"
            within the meaning of Section 280G(b)(3) of the Code.

            "Taxes" means all federal, state, local and foreign income, excise,
            social security and other taxes, other than Excise Tax, and any
            associated interest and penalties.

            "Terms of this Agreement" means the period beginning on the date of
            this Agreement and ending on February 29, 2008

            "Underpayment" has the meaning set forth in Paragraph 10(b).

12.   ENTIRE AGREEMENT:

      This Agreement, in conjunction with Executive's EDS Agreement entered into
      effective March 15, 2004, EDS Indemnification Agreement, and all written
      agreements Executive has entered into with EDS in connection with the 2003
      Incentive Plan of Electronic Data Systems Corporation (and all prior or
      subsequent amendments), the Global Share Plan or the Performance Share
      Plan, which agreements, if any, are incorporated herein by reference,
      constitute the entire agreement between Executive and EDS/UGS, and
      supersede and prevail over all other prior and/or contemporaneous
      agreements, understandings or representations by or between the parties,
      whether oral or written, and specifically supercede and prevail over,
      without limitation, Executive's EDS Change of Control Employment Agreement
      dated October 23, 2001, and Executive's Retention Agreement dated December
      3, 2002 (both of which Executive acknowledges are null and void and of no
      further force or effect). This Agreement may not be modified or amended,

                                      -8-
<PAGE>

      and there shall be no waiver of its provisions, except by a written
      instrument executed by Executive and approved by the Compensation and
      Benefits Committee of EDS' Board of Directors if prior to a Private Equity
      Sale or IPO, or the most senior officer or applicable committee of the
      Board of Directors of UGS or EDS (as determined by applicable listing
      standards and committee charter) if after a Private Equity Sale or IPO. It
      is expressly acknowledged by the parties that this Agreement does not
      alter or in any way amend the terms of EDS' SERP.

13.   NOTICE:

      All notices shall be in writing and shall be given, if by Executive to
      UGS, by telecopy or facsimile transmission at the telecommunications
      number set forth below and, if by either UGS or Executive, either by hand
      delivery to the other party or by registered or certified mail, return
      receipt requested, postage prepaid, addressed as follows:

            If to Executive
            Anthony J. Affuso
            3132 Seneca Drive
            Frisco, Texas  75034

                  If to UGS (if at such time UGS is no
                  longer a wholly owned subsidiary of
                  EDS, such notice should be provided to
                  UGS' Board of Directors);
                  Electronic Data Systems Corporation
                  5400 Legacy Drive H3-1D-22
                  Plano, Texas  75024
                  Telecommunications Number:  (972)605-1926
                  Attention: Michael A. Paloucci
                             Vice President, Global Compensation & Benefits

UGS PLM SOLUTIONS INC.

/s/ Jeffrey M. Heller                       Date: 3/2/2004
----------------------
By: Jeffrey M. Heller
    Vice President

/s/ Anthony J. Affuso                       Date: 3/1/2004
----------------------
    Anthony J. Affuso

                                      -9-

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