Document:

<PAGE>

                                  EXHIBIT 4.1
                                  -----------

                         REGISTRATION RIGHTS AGREEMENT
                         -----------------------------

   (Any exhibits or schedules that are omitted, are omitted pursuant to Item
    601(b)(2) of Regulation S-K.  The Registrant agrees, however, to furnish
  supplementary a copy of such omitted items to the Commission upon request).
<PAGE>

                         REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT, dated as of June 7, 2000, by and among
Lernout & Hauspie Speech Products N.V., a Belgian corporation ("Buyer"), L&H
Holdings USA, Inc., a Delaware corporation and a direct, wholly owned subsidiary
of Buyer, Dragon Systems, Inc., a Delaware corporation ("Company"), and the
Stockholder Representatives (as defined in the Merger Agreement described
below), is being entered into pursuant to an Agreement and Plan of Merger dated
as of March 27, 2000 (the "Merger Agreement") by and among Buyer, L&H Holdings
USA, Inc., Company and certain principal stockholders of Company.

                                   ARTICLE I
                                   ---------

                                  Definitions
                                  -----------

     SECTION 1.01. Definitions. As used in this Agreement, the following terms
                   -----------
shall have the following meanings:

     "Affiliate" has the meaning set forth in Rule 12b-2, as in effect on the
      ---------
date hereof, under the Exchange Act.

     "beneficially own" has the meaning set forth in Rule 13d-3, as in effect on
      ----------------
the date hereof, under the Exchange Act.

     "Business Day" means any day that is not a Saturday, Sunday or other day on
      ------------
which banks are required or authorized by law to be closed in The City of New
York.

     "Buyer" means Lernout & Hauspie Speech Products N.V., a Belgian
      -----
corporation.

     "Commission" means the U.S. Securities and Exchange Commission and any
      ----------
successor agency.

     "Company" means Dragon Systems, Inc., a Delaware corporation.
      -------

     "Effective Date" means the date that the Registration Statement described
      --------------
in Section 2.02 shall have been declared effective by the Commission.

     "Effective Time" means the time that the Merger is effective under Delaware
      --------------
General Corporation Law.

     "Exchange Act" means the United States Securities Exchange Act of 1934, as
      ------------
amended.

     "Holder" means a Stockholder and any Permitted Transferee.
      ------

     "Merger" Means the merger of the Company with an into a wholly-owned
      ------
subsidiary of Buyer as contemplated by the Merger Agreement.
<PAGE>

     "Merger Shares"  Means the shares of Buyer Common Stock issued to the
      -------------
holders of Company Common Stock as of the Effective Time under Section 2.1(c) of
the Merger Agreement.

     "Permitted Transferee" means in the case of each Stockholder: (a) any
      --------------------
Affiliate of the Stockholder or of any member of such Stockholder's immediate
family; (b) spouses, lineal descendants and members of the Stockholder's
immediate family or trusts for their benefits; or (c) upon such Stockholder's
death, such Stockholder's executors, administrators, testamentary trustees,
legatees, heirs and beneficiaries.

     "Person" means any individual, firm, corporation, partnership, limited
      ------
partnership, limited liability company, association, trust, unincorporated
organization or other entity, as well as any syndicate or group that would be
deemed to be a person under Section 13(d)(3) of the Exchange Act.

     "Register," "registered" and "registration" shall refer to a
      --------    ----------       ------------
registration effected by preparing and filing with the Commission a registration
statement on Form F-3 (or any successor short form registration statement
involving a similar amount of disclosure, or if not then ineligible to use any
such form, then any other available form of registration statement) and the
declaration or ordering of effectiveness of such registration statement or
document.

     "Registration Period Termination Date" means the earlier to occur of
      ------------------------------------
the second anniversary of the Effective Date or the date upon which there are no
longer any Registrable Shares.

     "Registrable Stock" means the Merger Shares and any securities issued or
      -----------------
issuable with respect to any Merger Shares by way of conversion, exchange,
replacement, stock dividend, stock split or other distribution or in connection
with a combination of shares, recapitalization, merger, consolidation or other
reorganization or otherwise.  For purposes of this Agreement, any Registrable
Stock shall cease to be Registrable Stock when (i) a registration statement
covering such Registrable Stock has been declared effective and such Registrable
Stock has been disposed of pursuant to such effective registration statement,
(ii) such Registrable Stock is sold by a Person in a transaction in which the
rights under the provisions of this Agreement are not assigned pursuant to the
terms hereof, (iii) such Registrable Stock is sold pursuant to Rule 144 (or any
similar provision then in force, but not Rule 144A) under the Securities Act
without registration under the Securities Act, (iv) the Registrable Stock is
capable of being sold pursuant to Rule 144(k) (or any similar provision then in
force, but not rule 144A).

     "Securities Act" means the United States Securities Act of 1933, as
      --------------
amended.

     "Stockholder" means a holder of Common Stock of the Company who will
      -----------
be receiving Merger Shares as of the Effective Time.

     "Stockholders Representatives" means Janet Baker and Donald Waite.
      ----------------------------

     Other capitalized terms used herein but not defined shall have the meanings
set forth in the Merger Agreement.
<PAGE>

                                   ARTICLE II
                                   ----------

                              Registration Rights
                              -------------------

SECTION 2.01.  Restrictive Legend.  (a) Each certificate representing shares of
               ------------------
Registrable Stock shall be stamped or otherwise imprinted with a legend
substantially in the following form:

          THE SHARES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED SECURITIES
          WITHIN THE MEANING OF RULE 144 UNDER THE SECURITIES ACT OF 1933, AS
          AMENDED (THE "ACT").  THE SHARES MAY NOT BE SOLD, MORTGAGED, PLEDGED,
          HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
          REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE ACT OR AN OPINION
          OF COUNSEL SATISFACTORY TO THE CORPORATION THAT REGISTRATION IS NOT
          REQUIRED UNDER THE ACT.

     (b)  The Buyer shall, at the request of the each Shareholder, remove
from each certificate evidencing Merger Shares the legend described in Section
2.01(a) if in the opinion of counsel reasonably satisfactory to the Buyer the
securities evidenced thereby may be publicly sold without restriction without
registration under the Securities Act.

SECTION 2.02.  Registration Statement.  Subject to the provisions of Section
               ----------------------
2.03, the Buyer shall:

     (a)  as soon as practicable after the Effective Time, but in no event
later than five (5) business days thereafter or May 31, 2000 (whichever is
later), file (or confidentially submit so long as it does not delay the review
by the Commission) with the Commission a registration statement under the
Securities Act on Form F-3 (or any successor short form registration involving a
similar amount of disclosure; or if then ineligible to use any such form, then
any other available form of registration statement) for a public offering of all
the Registrable Stock to be made on a continuous basis pursuant to Rule 415 of
the Securities Act (the "Registration Statement"); and use its best efforts to
cause such Registration Statement to become and remain effective until the
Registration Period Termination Date; and promptly notify the Stockholder
Representatives of such filing.

     (b)  prepare and file with the Commission such amendments and supplements
to the Registration Statement and the prospectus used in connection therewith
("Prospectus") as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all Registrable Stock covered
by the Registration Statement and promptly notify the Holders of any stop order
issued or, to the Buyer's knowledge, threatened to be issued by the Commission
and take all reasonable actions required to prevent the entry of such stop order
or to remove it if entered;

     (c)  furnish to the Holders such numbers of copies of the Registration
Statement and the Prospectus and any amendments or supplements thereto in
conformity with the requirements of the Securities Act and any Agreements filed
therewith and such other documents and information as they may reasonably
request;
<PAGE>

     (d)  use its best efforts to register or qualify the Registrable Stock
covered by the Registration Statement under such other securities or blue sky
laws of such jurisdiction within the United States as shall be reasonably
appropriate for the distribution of the Registrable Stock covered by the
Registration Statement; provided, however, that the Buyer shall not be required
                        --------  -------
in connection therewith or as a condition thereto to qualify to do business in
or to file a general consent to service of process in any jurisdiction wherein
it would not but for the requirements of this paragraph (d) be obligated to do
so; and provided, further, that the Buyer shall not be required to qualify such
        --------  -------
Registrable Stock in any jurisdiction in which the securities regulatory
authority requires that any Holder submit any shares of its Registrable Stock to
the terms, provisions and restrictions of any escrow, lockup or similar
agreement(s) for consent to sell Registrable Stock in such jurisdiction unless
such Holder agrees to do so;

     (e)  promptly notify each Holder for whom such Registrable Stock is
covered by the Registration Statement, at any time when a prospectus relating
thereto is required to be delivered under the Securities Act, of the happening
of any event as a result of which the Prospectus, as then in effect, includes an
untrue statement of a material fact or omits to state any material fact required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances under which they were made, and at the request of
any such Holder promptly prepare and furnish to such Holder a reasonable number
of copies of a supplement to or an amendment of such Prospectus as may be
necessary so that, as thereafter delivered to the purchasers of such securities,
such Prospectus shall not include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances under which they
were made.

     SECTION 2.03.  Holder Obligations.  (a)  It shall be a condition precedent
                    ------------------
to the obligations of the Buyer to take any action pursuant to this Agreement
that the Holders shall furnish to the Buyer such information regarding
themselves, their relationship with the Buyer and its Affiliates, their
beneficial ownership of Buyer Common Stock, the Registrable Stock held by them,
and the intended method of disposition, if any, of such securities as the Buyer
shall reasonably request and as shall be required in connection with the action
to be taken by the Buyer.

     (b)  The Buyer may, upon written notice to a Holder, suspend the Holder's
use of the Prospectus if the Buyer determines in good faith that sales under the
Registration Statement or Prospectus would require the disclosure of non-public
information material to the Buyer at a time when the Buyer determines that such
disclosure would have a material adverse effect on the Buyer; provided that the
                                                              --------
Buyer may not effect any suspension under this Section 2.03 (b) more than two
times in any twelve-month period, and all suspensions under this Section 2.03(b)
in any twelve-month period shall not exceed 30 days in the aggregate. Each
Holder further agrees by acquisition of such Registrable Stock that, upon
receipt of any notice from the Buyer of the happening of any event of the kind
described in this Section 2.03(b), such Holder will forthwith discontinue
disposition of such Registrable Stock covered by the registration (other than in
transactions exempt from the registration requirements under the Securities Act)
until such Holder's receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 2.02(e), or until it is advised in writing by
the Buyer that the use of the applicable Prospectus may be resumed, and, in
either case, has received copies of any additional or supplemental filings that
are incorporated or deemed to be incorporated by reference in such Prospectus.
<PAGE>

     (c)  Each Holder understands that information provided to it pursuant to
any notice under Section 2.03(b) or otherwise pursuant to this Agreement or any
of the registrations to be effected hereby may contain confidential information,
as designated in writing by the Buyer, and agrees that unless such information
otherwise becomes generally known to the public to maintain such information in
confidence and not use such information for its own benefit other than as
expressly contemplated by this Agreement.

     (d)  Each Holder agrees to comply with the prospectus delivery requirements
under the Securities Act in connection with the sale of any Registrable Stock
pursuant to the Registration Statement.

     (e)  Each Holder hereby appoint Janet Baker and Donald Waite as the
Stockholders Representatives.

     SECTION 2.04.  Expenses of Registration.  All expenses incurred by the
                    ------------------------
Buyer in connection with the filing of the Registration Statement pursuant to
Section 2.02 of this Agreement, excluding underwriters' discounts and
commissions, but including without limitation all registration, filing and
qualification fees, word processing, duplicating, printers' and accounting fees
(including the expenses of any special audits or "cold comfort" letters required
by or incident to such performance and compliance), fees of the National
Association of Securities Dealers, Inc. or listing fees, messenger and delivery
expenses, all fees and expenses of complying with state securities or blue sky
laws, and the fees and disbursements of counsel for the Buyer, and the
reasonable fees and expenses of one counsel for the Holders designated by the
Stockholders Representatives, shall be paid by the Buyer. The Holders shall bear
and pay the underwriting commissions and discounts applicable to securities
offered for their account and the fees and disbursements of their counsel in
connection with any registrations, filings and qualifications made pursuant to
this Agreement.

     SECTION 2.05.  Indemnification.  In the event any Registrable Stock is
                    ---------------
included in a registration statement under this Agreement:

     (a)  The Buyer shall indemnify and hold harmless each Holder, such Holder's
directors, officers, agents, trustees and stockholders, and each Person who
participates in the offering of such Registrable Stock, including underwriters
(as defined in the Securities Act), and each Person, if any, who controls such
Holder or participating Person within the meaning of the Securities Act, against
any losses, claims, damages or liabilities, joint or several, to which they may
become subject under the Securities Act, the Exchange Act or otherwise, insofar
as such losses, claims, damages or liabilities (or proceedings in respect
thereof) arise out of or are based on any untrue or alleged untrue statement of
any material fact contained in such Registration Statement, preliminary
prospectus or final prospectus included therein, or any amendment or supplement
thereto, or any document incorporated therein by reference or any other such
disclosure document (hereinafter collectively, "Disclosure Documents") or arise
out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and shall reimburse each such Holder, such Holder's
directors and officers, such participating person or controlling person for any
legal or other expenses reasonably incurred by them (but not in excess of
expenses incurred in respect of one counsel for all of them, subject to the
limitations set forth in Section 2.05(c)) in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
                                                             --------  -------
that the indemnity agreement contained in this Section 2.05(a) shall not apply
to amounts paid in settlement of any
<PAGE>

such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Buyer; provided, further, that the Buyer shall not be
                                  --------  -------
liable to any Holder, such Holder's directors, officers, agents, trustees and
stockholders, and participating Person or controlling Person in any such case
for any such loss, claim, damage, liability or action to the extent that it
arises out of or is based upon: (i) an untrue statement or alleged untrue
statement or omission or alleged omission made in connection with such
registration statement, preliminary prospectus, final prospectus or amendments
or supplements thereto, in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration by
any such Holder, such Holder's directors, officers, agents, trustees and
stockholders, and participating Person or controlling Person; or (ii) an untrue
statement or alleged untrue statement or omission or alleged omission made in
connection with such registration statement, preliminary prospectus, final
prospectus or amendments or supplements thereto corrected in a final or amended
registration statement or prospectus if such Holder or underwriter received
written notice of, and a copy of, such final or amended prospectus prior to the
confirmation of any sale but failed to deliver a copy of the final or amended
prospectus at or prior to the confirmation of the sale of the Registrable Stock
to the person asserting such loss, claim, damage or liability. Such indemnity
shall remain in full force and effect regardless of any investigation made by or
on behalf of any such Holder, such Holder's directors, officers, agents,
trustees and stockholders, and participating Person or controlling Person, and
shall survive the transfer of such securities by such Holder.

     (b)  Each Holder requesting or joining in a registration severally and not
jointly shall indemnify and hold harmless the Buyer, each of its directors and
officers, each Person, if any, who controls the Buyer within the meaning of the
Securities Act, and each agent and any underwriter for the Buyer (within the
meaning of the Securities Act) against any losses, claims, damages or
liabilities, joint or several, to which the Buyer or any such director, officer,
controlling Person, agent or underwriter may become subject, under the
Securities Act, the Exchange Act or otherwise, insofar as such losses, claims,
damages or liabilities (or proceedings in respect thereof) arise out of or are
based upon any untrue statement or alleged untrue statement of any material fact
contained in a Disclosure Document or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, in
each case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in such
registration statement, preliminary or final prospectus, or amendments or
supplements thereto, in reliance upon and in conformity with written information
furnished by or on behalf of such Holder expressly for use in connection with
such registration; and each such Holder shall reimburse any legal or other
expenses reasonably incurred by the Buyer or any such director, officer,
controlling Person, agent or underwriter (but not in excess of expenses incurred
in respect of one counsel for all of them) in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
                                                             --------  -------
that the indemnity agreement contained in this Section 2.05(b) shall not apply
to amounts paid in settlement of any such loss, claim, damage, liability or
action if such settlement is effected without the consent of such Holder, and
provided, further, that the liability of each Holder hereunder shall be limited
--------  -------
to the net amount received by such Holder from the sale of all Registrable Stock
covered by such registration statement.

     (c)  Promptly after receipt by an indemnified party under this Section 2.05
of notice of the commencement of any action, such indemnified party shall, if a
claim in respect thereof is to be made against any indemnifying party under this
Section 2.05, notify the indemnifying party in writing of the commencement
thereof and the indemnifying party shall have the right to participate
<PAGE>

in and assume the defense thereof with counsel selected by the indemnifying
party and reasonably satisfactory to the indemnified party (unless: (i) the
indemnifying party and such indemnified party shall have mutually agreed to the
retention of such counsel; or (ii) in the reasonable opinion of such indemnified
party representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such
counsel in such proceeding, in which case the indemnified party shall be
reimbursed by the indemnifying party for the reasonable expenses incurred in
connection with retaining separate legal counsel); provided, however, that an
                                                   --------  -------
indemnified party shall have the right to retain its own counsel, with all fees
and expenses thereof to be paid by such indemnified party, and to be apprised of
all progress in any proceeding the defense of which has been assumed by the
indemnifying party. The failure to notify an indemnifying party promptly of the
commencement of any such action shall not relieve the indemnifying party from
any liability in respect of such action which it may have to such indemnified
party on account of the indemnity contained in this Section 2.05, unless (and
only to the extent) the indemnifying party was prejudiced by such failure, and
in no event shall such failure relieve the indemnifying party from any other
liability which it may have to such indemnified party. No indemnifying party
shall, without the prior written consent of the indemnified party, effect any
settlement of any claim or pending or threatened proceeding in respect of which
the indemnified party is or could have been a party and indemnity could have
been sought hereunder by such indemnified party, unless such settlement includes
an unconditional release of such indemnified party from all liability arising
out of such claim or proceeding.

     (d) (i)  To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party, in lieu of indemnifying
such indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities in
such proportion as is appropriate to reflect the relative fault of the
indemnifying party and indemnified party in connection with the actions which
resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations.  The relative fault of such indemnifying
party and indemnified party shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of material fact or omission or alleged omission to state a material
fact, has been made by, or relates to information supplied by, such indemnifying
party or indemnified party, and the parties' relative intent, knowledge, access
to information and opportunity to correct or prevent such action.  The amount
paid or payable by a party as a result of the losses, claims, damages or
liabilities referred to above shall be deemed to include any legal or other fees
or expenses reasonably incurred by such party in connection with any
investigation or proceeding.

(ii)  The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 2.05(d) were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in the immediately preceding paragraph.
No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.
<PAGE>

                                  ARTICLE III
                                  -----------

                                 Miscellaneous
                                 -------------

     SECTION 3.01.  Transfer of Registration Rights.  The registration rights of
                    -------------------------------
any Holder under this Agreement with respect to any Registrable Stock may be
transferred to a Permitted Transferee; provided, however, that: (i) the
                                       --------  -------
transferring Holder shall give the Buyer notice at or prior to the time of such
transfer stating the name and address of the transferee and identifying the
securities with respect to which the rights under this Agreement are to be
transferred; (ii) such transferee shall agree in writing, in form and substance
reasonably satisfactory to the Buyer, to be bound as a Holder by the provisions
of this Agreement; and (iii) immediately following such transfer the further
disposition of such securities by such transferee is restricted under the
Securities Act. Any transfer of Registrable Stock other than as set forth in
this Section 3.01 shall cause such Registrable Stock to lose such status.

     SECTION 3.02.  Interpretation.  (a)  The headings contained in this
                    --------------
Agreement and, in the table of contents to this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

     (b)  In the event of an ambiguity or a question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the parties
and no presumption or burden of proof shall arise favoring or disfavoring any
party by virtue of the authorship of any provisions of this Agreement.

     (c)  The definitions of the terms herein shall apply equally to the
singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms. The words "include", "includes" and "including" shall be deemed to
be followed by the phrase "without limitation". The word "will" shall be
construed to have the same meaning and effect as the word "shall". Unless the
context requires otherwise: (i) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein); (ii) any reference
herein to any Person shall be construed to include the Person's successors and
permitted assigns; (iii) the words "herein", "hereof" and "hereunder", and words
of similar import, shall be construed to refer to this Agreement in its entirety
and not to any particular provision hereof; and (iv) all references herein to
Articles and Sections shall be construed to refer to Articles and Sections of
this Agreement.

     SECTION 3.03.  Amendments.  No amendment, modification or waiver in respect
                    ----------
of this Agreement shall be effective unless it shall be in writing and signed by
the Buyer and the Stockholder Representatives.

     SECTION 3.04.  Assignment.  Except where otherwise expressly provided
                    ----------
herein, this Agreement and the rights and obligations hereunder shall not be
assignable or transferable by the parties hereto (except by operation of law in
connection with a merger, or sale of substantially all the assets, of the
parties hereto) without the prior written consent of the other parties hereto.
Any attempted assignment in violation of this Section 3.04 shall be void.
<PAGE>

     SECTION 3.05.  No Third-Party Beneficiaries.  This Agreement is for the
                    ----------------------------
sole benefit of the parties hereto and their permitted assigns and nothing
herein expressed or implied shall give or be construed to give to any Person,
other than the parties hereto and such assigns, any legal or equitable rights
hereunder.

     SECTION 3.06.  Notices.  All notices or other communications required or
                    -------
permitted to be given hereunder shall be in writing and shall be delivered by
hand or sent by prepaid telex, cable or telecopy or sent, postage prepaid, by
registered, certified or express mail or reputable overnight courier service and
shall be deemed given when so delivered by hand, telexed, cabled or telecopied,
or if mailed, five days after mailing (two Business Days in the case of express
mail or overnight courier service), as follows:

     (i)  if to the Buyer,

                    Lernout & Hauspie Speech Products N.V.
                    Flanders Language Valley 50
                    B-8900, Ieper, Belgium
                    Attn:  President
                    Tel #: 011-32-5722-8888
                    Fax #: 011-32-5720-8489

                    with a copy to:

                    Brown, Rudnick, Freed & Gesmer, P.C.
                    One Financial Center
                    Boston, MA  02111
                    Attention: Philip J. Flink
                    Tel #:     (617) 856-8200
                    Fax #:     (617) 856-8201

     (ii) if to the Stockholders, to the Stockholder Representatives,

                    Janet M. Baker
                    173 Highland Street
                    West Newton, MA 02165
                    Tel #: (617) 964-6710
                    Fax #: (617) 332-9575

                    and

                    Seagate Technology, Inc.
                    920 Disc Drive
                    Scotts Valley, CA 05006
                    Attn:  Donald L. Waite
                    Tel #: (831) 439-2210
                    Fax #: (831) 438-2957

<PAGE>

                    with a copy to:

                    Sarah Rothermel, Esq.
                    Hale and Dorr LLP
                    60 State Street
                    Boston MA 02109
                    Tel #: (617) 526-6000
                    Fax #: (617) 526-5000

     SECTION 3.07.  Counterparts.  This Agreement may be executed in one or more
                    ------------
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more such counterparts have been signed by
each of the parties and delivered to the other party. Copies of executed
counterparts transmitted by telecopy, telefax or other electronic transmission
service shall be considered original executed counterparts for purposes of this
Section 3.07; provided that receipt of copies of such counterparts is confirmed.
              --------

     SECTION 3.08.  Severability.  If any provision of this Agreement (or any
                    ------------
portion thereof) or the application of any such provision (or any portion
thereof) to any Person or circumstance shall be held invalid, illegal or
unenforceable in any respect by a court of competent jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision
hereof (or the remaining portion thereof) or the application of such provision
to any other Persons or circumstances.

     SECTION 3.09.  Consent to Jurisdiction.  Each of the parties hereto
                    -----------------------
irrevocably submits to the exclusive jurisdiction of (a) a Federal court for the
District of Massachusetts; and (b) any Commonwealth of Massachusetts court
located in the County of Suffolk, for the purposes of any suit, action or other
proceeding arising out of this Agreement or any transaction contemplated hereby.
Each of the Buyer, the Buyer, the Stockholder Representatives and the
Stockholders agrees to commence any action, suit or proceeding relating hereto
either in a Federal Court for the District of Massachusetts or in a Commonwealth
of Massachusetts court located in the County of Suffolk.  Each of the parties
hereto further agrees that service of any process, summons, notice or document
by U.S. registered mail to such party's respective address set forth above shall
be effective service of process for any action, suit or proceeding in the
Commonwealth of Massachusetts with respect to any matters to which it has
submitted to jurisdiction in this Section  3.09.  Each of the parties hereto
irrevocably and unconditionally waives any objection to the laying of venue of
any action, suit or proceeding arising out of this Agreement or the transactions
contemplated hereby in: (i) any Federal court for the District of Massachusetts;
or (ii) any Commonwealth of Massachusetts court located in the County of
Suffolk, and hereby further irrevocably and unconditionally waives and agrees
not to plead or claim in any such court that any such action, suit or proceeding
brought in any such court has been brought in an inconvenient forum.

     SECTION 3.10.  Waiver of Jury Trial.  Each of the parties hereto hereby
                    --------------------
waives to the fullest extent permitted by applicable law, any right it may have
to a trial by jury in respect to any litigation directly or indirectly arising
out of, under or in connection with this Agreement. Each of the parties hereto:
(a) certifies that no representative, agent or attorney of any other party has
represented, expressly or otherwise, that such other party would not, in the
event of litigation, seek to enforce that foregoing waiver; and (b) acknowledges
that it and the other parties hereto have been induced to enter into this
Agreement, by, among other things, the mutual waivers and certifications in this
Section 3.10.
<PAGE>

     SECTION 3.11.  Specific Performance.  The parties hereto agree that
                    --------------------
irreparable damage would occur in the event any provision of this Agreement was
not performed in accordance with the terms hereof and that the parties shall be
entitled to specific performance of the terms hereof, in addition to any other
remedy at law or equity.

     SECTION 3.12.  Governing Law.  This Agreement shall be governed by and
                    -------------
construed in accordance with the internal laws of the Commonwealth of
Massachusetts applicable to agreements made and to be performed entirely within
such Commonwealth, without regard to the conflicts of law principles of such
Commonwealth.

                           [SIGNATURE PAGE TO FOLLOW]
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement or caused the same to be executed by their duly authorized
representatives as of the date first stated hereinabove.

                              LERNOUT & HAUSPIE SPEECH PRODUCTS N.V.

                              By:  /s/ Gaston Bastiaens
                                   ---------------------------------------
                                   Gaston Bastiaens
                                   President and Chief Executive Officer

                              L&H HOLDINGS USA, INC.

                              By:  /s/ Gaston Bastiaens
                                   ---------------------------------------
                                   Gaston Bastiaens
                                   President and Chief Executive Officer

                              DRAGON SYSTEMS, INC.

                              By:  /s/ Janet M. Baker
                                   ---------------------------------------
                                   Janet M. Baker
                                   Chairman`

                              STOCKHOLDER REPRESENTATIVES:

                              /s/ Janet M. Baker
                              --------------------------------------------
                              Janet M. Baker

                              /s/ Donald L. Waite
                              --------------------------------------------
                              Donald L. Waite<PAGE>

                                  EXHIBIT 4.2
                                  -----------

                            STOCKHOLDERS' AGREEMENT
                            -----------------------

   (Any exhibits or schedules that are omitted, are omitted pursuant to Item
    601(b)(2) of Regulation S-K.  The Registrant agrees, however, to furnish
  supplementary a copy of such omitted items to the Commission upon request).
<PAGE>

                            STOCKHOLDERS' AGREEMENT

                                     Among

                                  JKBAKER LLC,

                                  JMBAKER LLC,

                                 SEAGATE, LLC,

                               ROTH SPECIAL LLC,

                                CFB GILBERT LLC,

                                RGB RUMPOLE LLC,

                                JAMES K. BAKER,

                                JANET M. BAKER,

                                  ROBERT ROTH,

                           SEAGATE TECHNOLOGY, INC.,

                           THE PAUL G. BAMBERG TRUST,

                          THE CHERRY F. BAMBERG TRUST,

                                     LEHA,

                               L&H HOLDING N.V.,

                                L&H HOLDING III,

                                  OLDCO N.V.,

                            L&H INVESTMENT COMPANY,

                                      and

                     LERNOUT & HAUSPIE SPEECH PRODUCTS N.V.

                            Dated as of June 7, 2000
<PAGE>

                            STOCKHOLDERS' AGREEMENT

          STOCKHOLDERS' AGREEMENT, dated as of June 7, 2000 (this "Agreement"),
among JKBAKER LLC, JMBAKER LLC, SEAGATE, LLC, ROTH SPECIAL LLC, CFB GILBERT LLC,
and RGB RUMPOLE LLC, each a Delaware limited liability company (collectively,
the "LLCs"), JAMES K. BAKER, JANET M. BAKER, ROBERT ROTH, SEAGATE TECHNOLOGY,
INC., the PAUL G. BAMBERG TRUST and the CHERRY F. BAMBERG TRUST (collectively,
the "Principal Stockholders"), LEHA, a Netherlands foundation, L&H HOLDING N.V.,
a Belgian corporation, L&H HOLDING III, a Luxembourg corporation, OLDCO N.V., a
Belgian corporation, and L&H INVESTMENT COMPANY, a Belgian corporation
(collectively, LEHA, L&H Holding N.V., L&H Holding III, Oldco N.V., and L&H
Investment Company are hereinafter referred to as the "L&H Control Group") and
LERNOUT & HAUSPIE SPEECH PRODUCTS N.V., a Belgian corporation (the "Company").

          WHEREAS, the execution and delivery of this Agreement is a condition
to the obligations of the Company and Dragon Systems, Inc., a Delaware
corporation ("Dragon") under the Agreement and Plan of Merger dated as of March
27, 2000, among the Company, L&H Holdings USA, Inc., a Delaware corporation and
a direct wholly owned subsidiary of the Company ("Merger Sub"), Dragon and the
Principal Stockholders (the "Merger Agreement"), pursuant to

                                      X-i
<PAGE>

which Dragon shall merge with and into Merger Sub, all upon the terms and
subject to the conditions set forth in the Merger Agreement;

          WHEREAS, upon consummation of the transactions contemplated by the
Merger Agreement, the Principal Stockholders will beneficially own 9,807,489
shares of common stock of the Company, BEF 10.77 fractional value (together with
any common stock of the Company issued as a dividend or other distribution with
respect thereto, or in exchange therefor, or in replacement thereof, the
"Company Common Stock") and the L&H Control Group will beneficially own
22,352,984 shares of the Company Common Stock (the "L&H Shares");

          WHEREAS, the Company, the L&H Control Group, the LLCs and the
Principal Stockholders now wish to enter into this Agreement to set forth their
understanding as to the matters set forth herein with respect to, among other
things, representation on the Company's Board of Directors (the "Board") and the
holding, acquisition and transfer of Company Common Stock by the Principal
Stockholders and their Affiliates (as defined below); and

          WHEREAS, the parties agree that the arrangements contained in this
Agreement are in the corporate interest of the Company.

          NOW, THEREFORE, in consideration of the premises and the mutual
agreements and covenants hereinafter set forth, the parties hereto hereby agree
as follows:

                                       2
<PAGE>

                                   ARTICLE I

                                  Definitions
                                  -----------

          SECTION 1.01.  Definitions.  (a) As used in this Agreement, the
                         -----------
following terms shall have the following meanings:

          "Affiliate" means a Person that directly, or indirectly through one or
           ---------
more intermediaries, controls, is controlled by, or is under common control
with, a specified person.

          "beneficially own" has the meaning set forth in Rule 13d-3, as in
           ----------------
effect on the date hereof, under the Exchange Act.

          "Business Day" means any day that is not a Saturday, Sunday or other
           ------------
day on which banks are closed in the city of New York, New York, or the city of
Boston, Massachusetts, or in Belgium.

          "Change of Control Transaction" means any transaction in which any
           -----------------------------
Person or two or more Persons acting in concert shall have acquired, or shall
have entered into a definitive agreement providing for the acquisition of,
beneficial ownership, directly or indirectly, of the voting securities of the
Company representing fifty percent (50%) or more of the combined voting power of
all voting securities of the Company.

          "Closing" has the meaning set forth in the Merger Agreement.
           -------

          "Closing Date" has the meaning set forth in the Merger Agreement.
           ------------

          "control" (including the terms "controlled by" or "under common
           -------
control with") means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of the Company,
whether through the ownership of voting securities, by contract, or otherwise.

          "Director" means a member of the Board.
           --------

          "Exchange Act" means the United States Securities Exchange Act of
           ------------
1934, as amended.

          "Group" has the meaning set forth in Rule 13d-5, as in effect on the
           -----
date hereof, under the Exchange Act.

          "Holder" means any of the LLCs, the Principal Stockholders and any
           ------
Permitted Transferee.

          "Indemnity Escrow Agreement" means the Indemnity Escrow Agreement, of
           --------------------------
even date herewith, among the Company, Merger Sub, the Principal Stockholders
and an escrow agent.

          "Initial Shares" means the number of Stockholder Shares acquired by
           --------------
the Principal Stockholders at the Closing, taking into account any increase or
decrease thereof by reason of any

                                       3
<PAGE>

securities issued or issuable with respect to any such Stockholder Shares by way
of conversion, exchange, replacement, stock dividend, stock split or other
distribution or in connection with a combination of shares, recapitalization,
merger, consolidation or other reorganization or otherwise.

          "LLC Agreement" means each of the Agreements of Limited Liability
           -------------
Company of each of the LLCs, each of even date herewith, between each of the
Principal Stockholders and L&H Holding N.V.

          "Permitted Transferee" means any Affiliate of the Principal
           --------------------
Stockholders.

          "Person" means any individual, firm, corporation, partnership, limited
           ------
partnership, limited liability company, association, trust, unincorporated
organization or other entity, as well as any syndicate or group acting for the
purpose of acquiring, holding, or disposing of securities.

          "Stockholder Shares" means the Initial Shares, any other Company
           ------------------
Common Stock now or hereafter beneficially owned by the Principal Stockholders
or a Permitted Transferee and any securities issued or issuable with respect to
any such Common Stock by way of conversion, exchange, replacement, stock
dividend, stock split or other distribution or in connection with a combination
of shares, recapitalization, merger, consolidation or other reorganization or
otherwise.

          "Third Party Offer" means an unsolicited bona fide offer by a Person
           -----------------
other than the Holder to acquire more than fifty percent (50%) of the
outstanding voting securities of the Company.

          "Transfer" means transfer of a right in rem in shares, for valuable
           --------
consideration or for free, even when carried out by way of public auction,
voluntarily or by virtue of a judicial decision, including, but not limited to,
contributions, exchange transactions, transfers of substantially all of assets,
mergers, demergers, absorptions, liquidations or similar transactions, as well
as the granting of options to purchase or sell shares or the conclusion of a
swap or other agreement, that completely or partly transfers the economic
benefits or the ownership of the shares, regardless of whether such a
transaction is realized by means of delivery of securities, in cash or
otherwise.

                                       4
<PAGE>

     (b) The following terms have the meanings set forth in the Sections set
     forth below:

          Term                                        Location
          ----                                        --------
     Agreement....................................    Preamble
     Baker........................................    (S)2.01(a)
     BCLCC........................................    (S)2.03(a)
     Board........................................    Recitals
     Cause........................................    (S)2.04(a)
     Company......................................    Preamble
     Company Common Stock.........................    Recitals
     Dragon.......................................    Recitals
     Initial Restriction Period...................    (S)3.02(a)
     L&H Control Group............................    Preamble
     L&H Shares...................................    Recitals
     LLCs.........................................    Preamble
     Lockup Period................................    (S)3.01
     Merger Agreement.............................    Recitals
     Merger Sub...................................    Recitals
     Principal Stockholders.......................    Preamble

                                   ARTICLE II

                                   Governance
                                   ----------

          SECTION 2.01.  Initial Board Representation.  (a)  As and from the
                         ----------------------------
date hereof, and until she is elected to the Board, Janet Baker ("Baker") shall
have the right to: (i) attend meetings of the Board pursuant to a resolution of
the Board dated ______________ _____, 2000; and (ii) receive copies of all
materials provided by the Company to its directors, as and when such directors
receive such materials.

          (b) At the next annual meeting of stockholders of the Company, the
Company will seek approval to elect Baker to the Board for one year.  In
connection with such annual stockholders meeting, the LLCs may nominate Baker
for election to the Board, and the Company agrees to cause the slate of
Directors presented to the stockholders of the Company for election to the Board
to include Baker.

          SECTION 2.02.  Continuing Board Representation.  As long as (i)
                         -------------------------------
Baker continues to be an officer of the Company, and (ii) Baker (or her LLC)
owns at least twenty percent (20%) of her (or her LLC's) Initial Shares, the
LLCs or Principal Stockholders, as the case may be, may nominate Baker for
appointment to the Board and the parties hereto shall exercise all authority
under applicable law to cause any slate of Directors presented to the
stockholders of the Company for election to the Board to include Baker.  In the
event Baker ceases to serve as an officer of the Company, she shall immediately
resign her directorship.  In the event Baker (or her LLC) sells more than eighty
percent (80%) of her (or her LLC's) respective Initial Shares, she may continue
to serve as a director until the expiration of her then current term.

                                       5
<PAGE>

          SECTION 2.03.  Voting Agreement.  (a) The L&H Control Group shall
                         ----------------
take all actions necessary to vote all the L&H Shares entitled to vote and owned
or held of record by the L&H Control Group at any annual or special stockholders
meeting at which one or more directors are elected in favor of, or shall take
all actions by written consent in lieu of any such meeting necessary to cause,
the election of Baker to the Board, so long as Baker is entitled to be nominated
as a member of the Board pursuant to this Article II.  If the L&H Control Group
shall refuse to vote the L&H Shares as provided in this Section 2.03(a) at any
meeting of stockholders of the Company, or shall refuse to give its written
consent in lieu of a meeting, thereupon, without further action by the Principal
Stockholders, Baker shall be, and hereby is, irrevocably constituted the
attorney-in-fact and proxy of the L&H Control Group solely for the purpose of
voting, and shall vote such L&H Shares at such meeting as provided in this
Section 2.03(a) or give such consent, as the case may be.  In connection
herewith, the L&H Control Group agrees to execute such proxy documents as may be
necessary to comply with the provisions of Article 74, Section 2 of the Belgium
Coordinated Laws on Commercial Companies (the "BCLCC").
                                               -----

          (b) The Principal Stockholders shall take all actions necessary to
vote all the Stockholder Shares entitled to vote and owned or held of record by
the LLCs or the Principal Stockholders at any annual or special stockholders
meeting at which one or more directors are elected in favor of, or shall take
all actions by written consent in lieu of any such meeting necessary to cause,
the election of the designees of the L&H Control Group to the Board, so long as
Baker is entitled to attend meetings of the Board pursuant to Section 2.01(a)
hereof or is entitled to be nominated as a member of the Board pursuant to this
Article II.  If the LLCs or the Principal Stockholders shall refuse to vote the
Stockholder Shares as provided in this Section 2.03(b) at any meeting of
stockholders of the Company, or shall refuse to give its written consent in lieu
of a meeting, thereupon, without further action by the L&H Control Group, any
representative of the L&H Control Group shall be, and hereby is, irrevocably
constituted the attorney-in-fact and proxy of the LLCs and the Principal
Stockholders for the purpose of voting, and shall vote such Stockholder Shares
at such meeting as provided in this Section 2.03(b) or give such consent, as the
case may be.  In connection therewith, the LLCs and the Principal Stockholders
agree to execute such proxy documents as may be necessary to comply with the
provisions of Article 74, Section 2 of the BCLCC.

          SECTION 2.04.  Removal.  (a) The L&H Control Group agrees that, if,
                         -------
at any time, the L&H Control Group is then entitled to vote for the removal of
directors of the Company, so long as Baker is entitled to be a member of the
Board pursuant to this Article II, the L&H Control Group will not vote any L&H
Shares in favor of the removal of Baker unless such removal shall be for Cause.
Removal for "Cause" shall mean removal of a director because of such director's
(A) willful or persistently repeated material non-performance of the director's
duties to the Company (other than by reason of the incapacity of the director
due to physical or mental illness) after notice by the Board of such failure and
the director's non-performance and continued, willful or persistently repeated
material non-performance after such notice, (B) the indictment of the director
for a felony offense, or (C) the commission by the director of fraud or any
willful misconduct that brings the reputation of the Company into serious
disrepute or causes the director to cease to be able to perform his duties.

          (b) The Principal Stockholders agree that, if, at any time, the LLCs
or the Principal Stockholders are entitled to vote for the removal of directors
of the Company, so long as Baker is entitled to be a member of the Board
pursuant to this Article II, the LLCs and the Principal

                                       6
<PAGE>

Stockholders will not vote any Stockholder Shares in favor of the removal of any
director nominated to the Board by the L&H Control Group unless such removal
shall be for Cause.

                                  ARTICLE III

                               Lockup Provisions
                               -----------------

          SECTION 3.01.  Lockup Period.    The "Lockup Period" shall mean the
                         -------------
period beginning on the Closing Date and continuing until the first anniversary
of the Closing Date.  Without limiting the rights of the Principal Stockholders
set forth in Article II, the Lockup Period shall be suspended:

          (a) during such time as the Company is engaged in a process calculated
     to result in a Change of Control Transaction, but only so long as the
     Company has not terminated such process; provided that the Principal
                                              --------
     Stockholders will be notified promptly by the Company of its determination
     to engage in any such process; or

          (b) during such time as a Third Party Offer is outstanding.

          SECTION 3.02.  Transfer Restrictions.  (a) During the Lockup Period,
                         ---------------------
the LLCs shall not, directly or indirectly, Transfer any Initial Shares except
pursuant to (i) the terms of the Indemnity Escrow Agreement, (ii) the terms of
the LLC Agreements, or (iii) a Third Party Offer.

          (b) After the end of the Lockup Period, Holders may Transfer any
Stockholder Shares free of any restrictions contained in Section 3.02(a) of this
Agreement.

          (c) To the extent that any Stockholder Shares owned by the LLCs or the
Principal Stockholders other than James K. Baker and Janet M. Baker (or their
respective LLCs) are or become transferable pursuant to Sections 3.02(a) or (b)
above, such Stockholder Shares shall no longer be subject to the provisions of
this Agreement (regardless of whether such Stockholder Shares are actually
transferred).

          (d) The shares received by any transferee to whom Stockholder Shares
are transferred in accordance with Sections 3.02(a) or (b) above shall no longer
be subject to the provisions of this Agreement.

          (e) Each certificate representing the Stockholder Shares shall, except
as otherwise provided in this Section 3.02, be stamped or otherwise be imprinted
with legends substantially in the following form:

          "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
          RESTRICTIONS ON DISPOSITION AND OTHER RESTRICTIONS OF A STOCKHOLDERS'
          AGREEMENT DATED AS OF JUNE 7, 2000, AMONG THE HOLDER HEREOF AND
          LERNOUT & HAUSPIE SPEECH PRODUCTS N.V., AMONG OTHERS."

                                       7
<PAGE>

Such legend shall be removed with respect to any Stockholder Shares which are no
longer subject to the provisions of this Agreement.

          SECTION 3.03.  Acquisition of Additional Shares; Other Restrictions.
                         ----------------------------------------------------
During the Lockup Period (excluding such period during which the Lockup Period
may be suspended pursuant to Section 3.01), the LLCs and the Principal
Stockholders shall not, directly or indirectly, and shall cause their Affiliates
not to, directly or indirectly:

          (a) Except upon exercise of options or warrants granted by Company to
the Principal Stockholders or as otherwise permitted in the LLC Agreements,
acquire, announce an intention to acquire, offer to acquire, or enter into any
agreement, arrangement or undertaking of any kind the purpose of which is to
acquire, by purchase, exchange or otherwise, (i) any shares of Company Common
Stock or (ii) any other security convertible into, or any option, warrant or
right to acquire, Company Common Stock or (iii) all or substantially all of the
assets of the Company or any of its Affiliates; provided that Sections
                                                --------
3.03(a)(i) and (ii) shall not be applicable if the aggregate percentage of
outstanding Company Common Stock is increased solely as a result of corporate
action taken by the Company and not caused by any action taken by the Principal
Stockholders or any of their Affiliates.

          (b) Solicit, or participate in any solicitation of, proxies with
respect to any Company Common Stock, or become a "participant" in a
"solicitation" (as such terms are defined in Regulation 14A of the Exchange Act)
in opposition to any matter that has been recommended by a majority of the
Directors or in favor of any matter that has not been approved by a majority of
the Directors.

          (c) Propose or otherwise solicit stockholders of the Company for the
approval of one or more stockholder proposals, seek or solicit support for
(whether publicly or privately) any written consent of stockholders of the
Company, attempt to call a special meeting of stockholders, nominate or attempt
to nominate any Person for election as a Director (except in accordance with
Article II), or seek the removal or resignation of any Director (other than
Baker) (except in accordance with Article II), in each case in opposition to any
matter that has been recommended by a majority of the Directors (and such
recommendation has not been revoked or withdrawn) or in favor of any matter that
has not been approved by a majority of the Directors.

          (d) Deposit any Company Common Stock in a voting trust or similar
agreement or subject any Company Common Stock to any arrangement or agreement
with respect to the voting of such Company Common Stock.

          (e) Take any action to form, join or in any way participate in any
partnership, limited partnership, syndicate or other Group with respect to
Company Common Stock or otherwise act in concert with any Person for the purpose
of circumventing the provisions or purposes of this Agreement.

          (f) Propose (or publicly announce or otherwise disclose an intention
to propose), solicit, offer, seek to effect, negotiate with or provide any
confidential information relating to the Company or its business to any other
Person with respect to, any tender or exchange offer, merger, consolidation,
share exchange, business combination, restructuring, recapitalization or similar
transaction involving the Company or fail to withdraw from any such proposal
that, in the opinion

                                       8
<PAGE>

of counsel to the Company, would require the Company to make a public
announcement with respect thereto; provided, that nothing set forth in this
                                   --------
Section 3.03(f) shall prohibit the Principal Stockholders from soliciting,
offering, seeking to effect and negotiating with any Person with respect to
Transfers of Company Common Stock otherwise permitted by this Article III;
provided further, that in so doing the LLCs and the Principal Stockholders shall
-------- -------
not (x) issue any press release or otherwise make any public statements (other
than statements made in response to any request by any Person for confirmation
by the Principal Stockholders or any of their Affiliates of information
contained in any statement on Schedule 13D under the Exchange Act) with respect
to such action (provided that the Principal Stockholders may, and may permit
                --------
their Affiliates to, make any statement required by applicable law, including
without limitation, the amendment of any statement on Schedule 13D under the
Exchange Act); provided, however, that in doing so the Principal Stockholders
               --------  -------
shall not provide any confidential information relating to the Company or its
business to any such Person, and; provided, further, that nothing in this
                                  --------  -------
Section 3.03(f), shall apply to discussions between or among officers, employees
or agents of the Principal Stockholders and Baker.

          (g) Assist, advise, encourage or influence in any respect any third
party to seek to control management of the Company including, without limitation
assisting such third party in (i) influencing the Board or the management or
policies of the Company or (ii) acquiring, holding, voting or disposing of
voting securities of the Company.

          (h) Take any other action to seek control of the Company.

          (i) Make or in any way advance any request or proposal to amend,
modify or waive any provision of this Agreement except in a nonpublic and
confidential manner.

          (j) Announce an intention to do, or solicit, assist, prompt, induce or
attempt to induce any Person to do, any of the actions restricted or prohibited
under subparagraphs (a) through (i) above.

          Notwithstanding the restrictions contained in this Section 3.03, none
of the actions taken by Baker as a member of the Board pursuant to her
responsibilities in such capacity or the exercise by any Holder of its voting
rights with respect to any Stockholder Shares shall be deemed to violate this
Section 3.03.

          SECTION 3.04.  Additional Shares.  All shares of Company Common
                         -----------------
Stock acquired by a Holder pursuant to this Article III or as a result of a
recapitalization of the Company or any other action taken by the Company, shall
be subject to all of the terms, covenants and conditions of this Agreement.

                                  ARTICLE IV

                                 Miscellaneous
                                 -------------

          SECTION 4.01.  Interpretation.  (a)  The headings contained in this
                         --------------
Agreement and in the table of contents to this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

                                       9
<PAGE>

          (b) In the event of an ambiguity or a question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provisions of this
Agreement.

          (c) The definitions of the terms herein shall apply equally to the
singular and plural forms of the terms defined.  Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms.  The words "include", "includes" and "including" shall be deemed
to be followed by the phrase "without limitation".  The word "will" shall be
construed to have the same meaning and effect as the word "shall".  Unless the
context requires otherwise (i) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (ii) any reference
herein to any Person shall be construed to include the Person's successors and
permitted assigns, (iii) the words "herein", "hereof" and "hereunder", and words
of similar import, shall be construed to refer to this Agreement in its entirety
and not to any particular provision hereof, and (iv) all references herein to
Articles and Sections shall be construed to refer to Articles and Sections of
this Agreement.

          SECTION 4.02.  Amendments.  No amendment, modification or waiver in
                         ----------
respect of this Agreement shall be effective unless it shall be in writing and
signed by all parties hereto.

          SECTION 4.03.  Assignment.  Except where otherwise expressly
                         ----------
provided herein, this Agreement and the rights and obligations hereunder shall
not be assignable or transferable by the parties hereto (except by operation of
law in connection with a merger, or sale of substantially all the assets, of the
parties hereto) without the prior written consent of the other parties hereto;
provided, however, that the Principal Stockholders may assign their rights and
--------  -------
obligations hereunder to a Permitted Transferee. Any attempted assignment in
violation of this Section 4.03 shall be void.

          SECTION 4.04.  No Third-Party Beneficiaries.  This Agreement is for
                         ----------------------------
the sole benefit of the parties hereto and their permitted assigns and nothing
herein expressed or implied shall give or be construed to give to any Person,
other than the parties hereto and such assigns, any legal or equitable rights
hereunder.

          SECTION 4.05.  Notices.  All notices or other communications
                         -------
required or permitted to be given hereunder shall be in writing and shall be
delivered by hand or sent by prepaid telex, cable or telecopy or sent, postage
prepaid, by registered, certified or express mail or reputable overnight courier
service and shall be deemed given when so delivered by hand, telexed, cabled or
transmitted via facsimile, receipt telephonically confirmed, or if mailed, five
days after mailing (two Business Days in the case of express mail or overnight
courier service), as follows:

          (i)  if to the Company:

                         Lernout & Hauspie Speech Products N.V.
                         Flanders Language Valley 50
                         B-8900 Ieper
                         Belgium

                                      10
<PAGE>

               Attention:  General Counsel and Chief Financial Officer
               Telephone:  011 32 57 228 888
               Facsimile:  011 32 57 208 489

               with a copy to:

               Brown, Rudnick, Freed & Gesmer
               One Financial Center
               Boston, MA 02111
               Attention:  Philip J. Flink
               Telephone:  (617) 826-8200

     (ii)  if to the L&H Control Group

               c/o Lernout & Hauspie Speech Products N.V.
               Flanders Language Valley 50
               B-8900 Ieper
               Belgium
               Attention: Chantal Mestdagh
               Telephone:  011 32 57 228 888
               Facsimile:  011 32 57 208 489

               with a copy to:

               Brown, Rudnick, Freed & Gesmer
               One Financial Center
               Boston, MA 02111
               Attention:  Philip J. Flink
               Telephone:  (617) 826-8200

     (iii)  if to the LLCs or the Principal Stockholders:

               Janet M. Baker
               173 Highland Street
               West Newton, MA 02465

               Seagate Technology, Inc.
               920 Disc Drive
               Scotts Valley, CA 05006
               Attention:  Donald Waite

               with a copy to:

               Hale and Dorr LLP
               60 State Street
               Boston, MA 02109
               Attention:  Sarah Rothermel
               Telephone:  (617) 526-6000

                                      11
<PAGE>

          SECTION 4.06.  Counterparts.  This Agreement may be executed in one
                         ------------
or more counterparts, all of which shall be considered one and the same
agreement, and shall become effective when one or more such counterparts have
been signed by each of the parties and delivered to the other party.  Copies of
executed counterparts transmitted by telecopy, telefax or other electronic
transmission service shall be considered original executed counterparts for
purposes of this Section 4.06; provided that receipt of copies of such
                               --------
counterparts is confirmed.

          SECTION 4.07.  Severability.  If any provision of this Agreement (or
                         ------------
any portion thereof) or the application of any such provision (or any portion
thereof) to any Person or circumstance shall be held invalid, illegal or
unenforceable in any respect by a court of competent jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision
hereof (or the remaining portion thereof) or the application of such provision
to any other Persons or circumstances.

          SECTION 4.08.  Consent to Jurisdiction.  Each of the parties hereto
                         -----------------------
irrevocably submits to the exclusive jurisdiction of (a) the Federal courts of
the United States of America for the District of Massachusetts and (b) the state
courts of the Commonwealth of Massachusetts located in the County of Suffolk,
for the purposes of any suit, action or other proceeding arising out of this
Agreement or any transaction contemplated hereby.  Each of the parties hereto
agrees to commence any action, suit or proceeding relating hereto either in a
Federal court of the United States of America for the District of Massachusetts
or in a state court of the Commonwealth of Massachusetts located in the County
of Suffolk.  The Company and the L&H Control Group further agrees that service
of any process, summons, notice or document by U.S. registered mail to the
offices of Brown Rudnick Freed & Gesmer, P.C., One Financial Center, Boston, MA
02111, Attention: Philip J. Flink, shall be effective service of process for any
action, suit or proceeding in Massachusetts with respect to any matters to which
it has submitted to jurisdiction in this Section 4.08.  Each of the parties
hereto irrevocably and unconditionally waives any objection to the laying of
venue of any action, suit or proceeding arising out of this Agreement or the
transactions contemplated hereby in (i) any Federal court of the United States
of America for the District of Massachusetts or (ii) any state court of the
Commonwealth of Massachusetts located in the County of Suffolk, and hereby
further irrevocably and unconditionally waives and agrees not to plead or claim
in any such court that any such action, suit or proceeding brought in any such
court has been brought in an inconvenient forum.

          SECTION 4.09.  Termination.  This Agreement shall expire on the
                         -----------
first anniversary hereof except that the provisions of Article II shall
terminate on the date on which Baker (i) no longer serves as a director of the
Company (after she has been elected to serve on such Board) and (ii) no longer
has the right to require the L&H Control Group to vote the L&H Shares to elect
Baker to the Board pursuant to Article II hereof.

          SECTION 4.10.  Specific Performance.  The parties hereto agree that
                         --------------------
irreparable damage would occur in the event any provision of this Agreement was
not performed in accordance with the terms hereof and that the parties shall be
entitled to specific performance of the terms hereof, in addition to any other
remedy at law or equity.

          SECTION 4.11.  Governing Law.  Subject to the mandatory requirements
                         -------------
of the internal laws of the Kingdom of Belgium, this Agreement shall be governed
by and construed in accordance

                                      12
<PAGE>

with the internal laws of the Commonwealth of Massachusetts without regard to
the conflicts of law principles thereof.

                           [SIGNATURE PAGE TO FOLLOW]

                                      13
<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed as of the date first above written.

                              LERNOUT & HAUSPIE SPEECH PRODUCTS N.V.

                              By:  /s/ Jo Lernout
                                   -----------------------------
                                   Name:  Jo Lernout
                                   Title: Managing Director

                              By:  /s/ Pol Hauspie
                                   -------------------------------
                                   Name:  Pol Hauspie
                                   Title: Managing Director

                              JKBAKER LLC

                              By:  /s/ James K. Baker
                                   --------------------------------
                                   Name: James K. Baker
                                   Title:

                              JMBAKER LLC

                              By:  /s/ Janet M. Baker
                                   ---------------------------------
                                   Name:  Janet M. Baker
                                   Title:

                              SEAGATE LLC

                              By:/s/ Donald L. Waite
                                 ------------------------------------
                                  Name: Donald L. Waite
                                  Title:

                                      14

<PAGE>

                              ROTH SPECIAL LLC

                              By:/s/ Robert Roth
                                 ------------------------------------
                                  Name: Robert Roth
                                  Title:

                              CFB GILBERT LLC

                              By:  /s/ Cherry F. Bamberg
                                   -----------------------------------
                                  Name:   Cherry F. Bamberg
                                  Title:  Member

                              RGB RUMPOLE LLC

                              By: /s/ Paul G. Bamberg
                                  -------------------------------------
                                  Name:   Paul G. Bamberg
                                  Title:  Member

                              PRINCIPAL STOCKHOLDERS:

                              /s/ James K. Baker
                              -------------------------------------------
                              James K. Baker

                              /s/ Janet K. Baker
                              -------------------------------------------
                              Janet M. Baker

                              /s/ Robert Roth
                              -------------------------------------------
                              Robert Roth

                              SEAGATE TECHNOLOGY, INC.

                              By:  /s/ Donald L. Waite
                              -------------------------------------------
                                   Donald L. Waite
                                   Executive Vice President

                                      15
<PAGE>

                              PAUL G. BAMBERG AND DONALD B. FLETCHER, JR. AS
                              TRUSTEES OF THE PAUL G. BAMBERG TRUST U/A DATED
                              8/18/89, AS AMENDED 10/20/93

                              By:  /s/ Paul G. Bamberg
                                   ---------------------------------------
                                   Paul G. Bamberg

                              LERNOUT & HAUSPIE SPEECH PRODUCTS N.V.

                              By:  /s/ Donald B. Fletcher, Jr.
                                   --------------------------------------
                                   Donald B. Fletcher, Jr.

                              CHERRY F. BAMBERG AND DONALD B. FLETCHER, JR. AS
                              TRUSTEES OF THE CHERRY F. BAMBERG TRUST U/A DATED
                              8/18/89, AS AMENDED 10/20/93

                              By:  /s/ Cherry F. Bamberg
                                   ----------------------------------
                                   Cherry F. Bamberg

                              By:  /s/ Donald B. Fletcher, Jr.
                                   -----------------------------------
                                   Donald B. Fletcher, Jr.

                              LEHA

                              By:  /s/ Jo Lernout
                                   -----------------------------------
                                   Name:   Jo Lernout
                                   Title:  Director

                              By:  /s/ Pol Hauspie
                                   -----------------------------------
                                   Name:  Pol Hauspie
                                   Title: Director

                                      16
<PAGE>

                              L&H HOLDING N.V.

                              By:  /s/ Jo Lernout
                                   -----------------------------------
                                   Name: Jo Lernout
                                   Title: Managing Director

                              By:  /s/ Pol Hauspie
                                   -----------------------------------
                                   Name: Pol Hauspie
                                   Title: Managing Director

                              L&H HOLDING III

                              By:  /s/ Jo Lernout
                                   -----------------------------------
                                   Name: Jo Lernout
                                   Title: Director

                              By:  /s/ Norbert Schmitz
                                   -----------------------------------
                                   Name: Norbert Schmitz
                                   Title: Managing Director

                              OLDCO N.V.

                              By:  /s/ Jo Lernout
                                   -----------------------------------
                                   Name:  Jo Lernout
                                   Title: Managing Director, N.V. Lernout &
                                          Hauspie Investment Holding, Liquidator
                                          of Oldco, N.V.

                              L&H INVESTMENT COMPANY

                              By:  /s/ Jo Lernout
                                   -----------------------------------
                                   Name: Jo Lernout
                                   Title: Co-Chairman

                              By:  /s/ Chantal Mestdaghdude
                                   -----------------------------------
                                   Name: Chantal Mestdaghdude
                                   Title: Director

                                      17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]