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                                                                     EXHIBIT 4.1

                                  SYBASE, INC.
                                 2003 STOCK PLAN

1. Purposes of the Plan. The purposes of this 2003 Stock Plan are:

-        to attract and retain the best available personnel for positions of
         substantial responsibility,
         -        to provide additional incentive to Employees and Consultants,
                  and
         -        to promote the success of the Company's business.

Options granted under the Plan may be Incentive Stock Options or Nonstatutory
Stock Options, as determined by the Administrator at the time of grant. Stock
Purchase Rights may also be granted under the Plan.

2. Definitions. As used herein, the following definitions shall apply:

(a) "Administrator" means the Board or any of its Committees as shall be
administering the Plan, in accordance with Section 4 of the Plan.

(b) "Applicable Laws" means the legal requirements relating to the
administration of stock option, restricted stock and incentive stock plans under
state corporate and securities laws and the Code.

(c) "Board" means the Board of Directors of the Company.

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

(e) "Committee" means a Committee appointed by the Board in accordance with
Section 4 of the Plan.

(f) "Common Stock" means the Common Stock of the Company.

(g) "Company" means Sybase, Inc.

(h) "Consultant" means any person, including an advisor, engaged by the Company
or a Parent or Subsidiary to render services and who is compensated for such
services. The term "Consultant" shall not include Directors who are paid only a
director's fee by the Company or who are not compensated by the Company for
their services as Directors.

(i) "Continuous Status as an Employee or Consultant" means that the employment
or consulting relationship with the Company, any Parent, or Subsidiary, is not
interrupted or terminated. Continuous Status as an Employee or Consultant shall
not be considered interrupted in the case of (i) any leave of absence approved
by the Company or (ii) transfers between locations of the Company or between the
Company, its Parent, any Subsidiary, or any successor. A leave of absence
approved by the Company shall include sick leave, military leave, or any other
personal leave approved by an authorized representative of the Company. For
purposes of Incentive Stock Options, no such leave may exceed ninety (90) days,
unless reemployment upon expiration of such leave is guaranteed by statute or
contract. If reemployment upon expiration of a leave of absence approved by the
Company is not so guaranteed, on the one hundred eighty-first (181st) day of
such leave any Incentive Stock Option held by the Optionee shall cease to be
treated as an Incentive Stock Option and shall be treated for tax purposes as a
Non-statutory Stock Option.

(j) "Director" means a member of the Board.

(k) "Disability" means total and permanent disability as defined in Section
22(e)(3) of the Code.

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(l) "Employee" means any person, including Officers and Directors, employed by
the Company or any Parent or Subsidiary of the Company. Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.

(m) "Exchange Act" means the Securities Exchange Act of 1934, as amended.

(n) "Fair Market Value" means, as of any date, the value of Common Stock
determined as the closing sales price for such Common Stock (or the closing bid,
if no sales were reported) as quoted on such exchange or system for the date of
determination, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable.

(o) "Incentive Stock Option" means an Option intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code and the regulations
promulgated thereunder.

(p) "Misconduct" means the Optionee or purchaser, as applicable, (i) is
convicted of a felony involving dishonesty or moral turpitude, (ii) committed an
act of dishonesty intended to result in substantial personal enrichment, (iii)
engaged in actions intended to cause significant injury to the Company
(including derogatory statements regarding the Company, but excluding statements
made in connection with any legal action filed against the Company), or (iv)
breached the non-disclosure, non-compete or non-solicit provisions of any
agreement between the Optionee and the Company.

(q) "Nonstatutory Stock Option" means an Option not intended to qualify as an
Incentive Stock Option.

(r) "Notice of Grant" means a written or electronic notice evidencing certain
terms and conditions of an individual Option or Right grant. The Notice of Grant
is part of the Option Agreement.

(s) "Officer" means a person who is an officer of the Company within the meaning
of Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder.

(t) "Option" means a stock option granted pursuant to the Plan.

(u) "Option Agreement" means an agreement between the Company and an Optionee
evidencing the terms and conditions of an individual Option grant. The Option
Agreement is subject to the terms and conditions of the Plan.

(v) "Optioned Stock" means the Common Stock subject to an Option or Right.

(w) "Optionee" means an Employee or Consultant who holds an outstanding Option
or Right.

(x) "Parent" means a "parent corporation", whether now or hereafter existing, as
defined in Section 424(e) of the Code.

(y) "Plan" means this 2003 Stock Plan.

(z) "Restricted Stock" means shares of Common Stock acquired pursuant to a grant
of Stock Purchase Rights under Section 11 below.

(aa) "Restricted Stock Purchase Agreement" means a written agreement between the
Company and the Optionee evidencing the terms and restrictions applying to stock
purchased under a Stock Purchase Right. The Restricted Stock Purchase Agreement
is subject to the terms and conditions of the Plan and the Notice of Grant.

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(bb) "Retirement" means the termination of employment pursuant to the Company's
retirement policies for an Employee who has attained the age of fifty-five (55)
and whose Continuous Status as an Employee was not interrupted during the
previous five (5) years.

(cc) "Right" means a Stock Purchase Right granted pursuant to the Plan.

(dd) "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any successor to Rule
16b-3, as in effect when discretion is being exercised with respect to the Plan.

(ee) "Section 16(b)" means Section 16(b) of the Securities Exchange Act of 1934,
as amended.

(ff) "Share" means a share of the Common Stock, as adjusted in accordance with
Section 14 of the Plan.

(gg) "Stock Purchase Right" means the right to purchase Common Stock pursuant to
Section 11 of the Plan, as evidenced by a Notice of Grant.

(hh) "Subsidiary" means a "subsidiary corporation", whether now or hereafter
existing, as defined in Section 424(f) of the Code.

3. Stock Subject to the Plan. Subject to the provisions of Section 14 and other
relevant provisions of the Plan, the maximum aggregate number of Shares which
may be optioned and sold under the Plan is 2,500,000. The Shares may be
authorized, but unissued, or reacquired Common Stock. If an Option or Right
expires or becomes unexercisable without having been exercised in full, the
unpurchased Shares which were subject thereto shall become available for future
grant or sale under the Plan (unless the Plan has terminated); provided,
however, that Shares that have actually been issued under the Plan, whether upon
exercise of an Option or Right, shall not be returned to the Plan and shall not
become available for future distribution under the Plan, except that if Shares
of Restricted Stock are repurchased by the Company at their original purchase
price, and the original purchaser of such Shares did not receive any benefits of
ownership of such Shares, such Shares shall become available for future grant
under the Plan. For purposes of the preceding sentence, voting rights shall not
be considered a benefit of Share ownership.

4. Administration of the Plan.

(a) Procedure.

(i) Multiple Administrative Bodies. If permitted by Rule 16b-3, the Plan may be
administered by different bodies with respect to Directors, Officers who are not
Directors, and Employees who are neither Directors nor Officers.

(ii) Administration With Respect to Directors and Officers Subject to Section
16(b). With respect to Options or Rights grants made to Employees who are also
Officers or Directors subject to Section 16(b) of the Exchange Act, the Plan
shall be administered by (A) the Board, if the Board may administer the Plan in
a manner complying with the rules under Rule 16b-3 relating to the disinterested
administration of employee benefit plans under which Section 16(b) exempt
discretionary grants and awards of equity securities are to be made, or (B) a
committee designated by the Board to administer the Plan, which committee shall
be constituted to comply with the rules under Rule 16b-3 relating to the
disinterested administration of employee benefit plans under which Section 16(b)
exempt discretionary grants and awards of equity securities are to be made. Once
appointed, such Committee shall continue to serve in its designated capacity
until otherwise directed by the Board. From time to time the Board may increase
the size of the Committee and appoint additional members, remove members (with
or without cause) and substitute new members, fill vacancies (however caused),
and remove all members of the Committee and thereafter directly administer the
Plan, all to the extent permitted by the rules under Rule 16b-3 relating to the
disinterested administration of employee benefit plans under which Section 16(b)
exempt discretionary grants and awards of equity securities are to be made.

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(iii) Administration With Respect to Other Persons. With respect to Options or
Rights grants made to Employees or Consultants who are neither Directors nor
Officers of the Company, the Plan shall be administered by (A) the Board or (B)
a committee designated by the Board, which committee shall be constituted to
satisfy Applicable Laws. Once appointed, such Committee shall serve in its
designated capacity until otherwise directed by the Board. The Board may
increase the size of the Committee and appoint additional members, remove
members (with or without cause) and substitute new members, fill vacancies
(however caused), and remove all members of the Committee and thereafter
directly administer the Plan, all to the extent permitted by Applicable Laws.

(b) Powers of the Administrator. Subject to the provisions of the Plan, and in
the case of a Committee, subject to the specific duties delegated by the Board
to such Committee, the Administrator shall have the authority, in its
discretion:

(i) to determine the Fair Market Value of the Common Stock, in accordance with
Section 2(n) of the Plan;

(ii) to select the Consultants and Employees to whom Options and Rights may be
granted hereunder;

(iii) to determine whether and to what extent Options and Rights or any
combination thereof, are granted hereunder;

(iv) to determine the number of shares of Common Stock to be covered by each
Option and Right granted hereunder;

(v) to approve forms of agreement for use under the Plan;

(vi) to determine the terms and conditions, not inconsistent with the terms of
the Plan, of any award granted hereunder. Such terms and conditions include, but
are not limited to, the exercise price, the time or times when Options or Rights
may be exercised (which may be based on performance criteria), any vesting
acceleration or waiver of forfeiture restrictions, and any restriction or
limitation regarding any Option or Right or the shares of Common Stock relating
thereto, based in each case on such factors as the Administrator, in its sole
discretion, shall determine;

(vii) to construe and interpret the terms of the Plan and awards granted
pursuant to the Plan;

(viii) to prescribe, amend and rescind rules and regulations relating to the
Plan, including rules and regulations relating to sub-plans established for the
purpose of qualifying for preferred tax treatment under foreign tax laws;

(ix) to modify or amend each Option or Right (subject to Section 16(c) of the
Plan), including the discretionary authority to extend the post-termination
exercisability period of Options;

(x) to authorize any person to execute on behalf of the Company any instrument
required to affect the grant of an Option or Right previously granted by the
Administrator;

(xi) to determine the terms and restrictions applicable to Options and Rights
and any Restricted Stock;

(xii) to determine whether and under what circumstances an Option may be settled
in cash under Section 10(f) instead of Common Stock;

(xiii) to determine whether, to what extent and under what circumstances Common
Stock and other amounts payable with respect to an award under this Plan shall
be deferred either automatically or at the election of the participant
(including providing for and determining the amount (if any) of any deemed
earnings on any deferred amount during any deferral period); and

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(xiv) to make all other determinations deemed necessary or advisable for
administering the Plan.

(c) Effect of Administrator's Decision. The Administrator's decisions,
determinations and interpretations shall be final and binding on all Optionees
and any other holders of Options or Rights.

5. Eligibility. Nonstatutory Stock Options and Rights may be granted to
Employees and Consultants. Incentive Stock Options may be granted only to
Employees. If otherwise eligible, an Employee or Consultant who has been granted
an Option or Right may be granted additional Options or Rights.

6. Limitations.

(a) Each Option shall be designated in the Option Agreement as either an
Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding
such designation, to the extent that the aggregate Fair Market Value of the
Shares with respect to which Incentive Stock Options are exercisable for the
first time by the Optionee during any calendar year (under all plans of the
Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be
treated as Nonstatutory Stock Options. For purposes of this Section 6(a),
Incentive Stock Options shall be taken into account in the order in which they
were granted. The Fair Market Value of the Shares shall be determined as of the
time the Option with respect to such Shares is granted.

(b) Neither the Plan nor any Option or Right shall confer upon an Optionee any
right with respect to continuing the Optionee's employment or consulting
relationship with the Company, nor shall they interfere in any way with the
Optionee's right or the Company's right to terminate such employment or
consulting relationship at any time, with or without cause.

(c) The following limitations shall apply to grants of Options to Employees:

(i) No Employee shall be granted, in any fiscal year of the Company, Options to
purchase more than one percent (1%) of the Company's total number of outstanding
shares immediately prior to the issuance.

(ii) The foregoing limitation shall be adjusted proportionately in connection
with any change in the Company's capitalization as described in Section 14.

7. Term of Plan. Subject to Section 21 of the Plan, the Plan shall become
effective upon the earlier to occur of its adoption by the Board or its approval
by the stockholders of the Company as described in Section 21 of the Plan. It
shall continue in effect for a term of ten (10) years unless terminated earlier
under Section 16 of the Plan.

8. Term of Option. The term of each Option shall be stated in the Notice of
Grant and shall be ten (10) years from the date of grant or such shorter term as
may be provided in the Notice of Grant.

9. Option Exercise Price and Consideration.

(a) Exercise Price. The per share exercise price for the Shares to be issued
pursuant to exercise of an Option shall be determined by the Administrator,
subject to the following:

(i) In the case of an Incentive Stock Option, the per Share exercise price shall
be no less than 100% of the Fair Market Value per Share on the date of grant.

(ii) In the case of a Nonstatutory Stock Option, the per Share exercise price
shall be determined by the Administrator, but in no case shall the per Share
exercise price be less than 85% of the Fair Market Value per Share on the date
of grant; provided, however, that for any calendar year, the aggregate number of
Shares subject to Nonstatutory Stock Options granted during such calendar year
with a per

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Share exercise price less than the Fair Market Value per Share on the date of
grant shall not exceed five percent (5%) of the number of Shares subject to
Options granted in the preceding calendar year.

(b) Waiting Period and Exercise Dates. At the time an Option is granted, the
Administrator shall fix the period within which the Option may be exercised and
shall determine any conditions that must be satisfied before the Option may be
exercised. In so doing, the Administrator may specify that an Option may not be
exercised until the completion of a service period or the attainment of certain
performance goals determined by the Administrator.

(c) Form of Consideration. The Administrator shall determine the acceptable form
of consideration for exercising an Option, including the method of payment. In
the case of an Incentive Stock Option, the Administrator shall determine the
acceptable form of consideration at the time of grant. Such consideration may
consist entirely of:

(i) cash;

(ii) check;

(iii) other Shares which (A) in the case of Shares acquired upon exercise of an
option, have been owned by the Optionee for more than six (6) months on the date
of surrender, and (B) have a Fair Market Value on the date of surrender equal to
the aggregate exercise price of the Shares as to which said Option shall be
exercised;

(iv) delivery of a properly executed exercise notice together with such other
documentation as the Administrator and the broker, if applicable, shall require
to affect an exercise of the Option and delivery to the Company of the sale or
loan proceeds required to pay the exercise price;

(v) a reduction in the amount of any Company liability to the Optionee,
including any liability attributable to the Optionee's participation in any
Company-sponsored deferred compensation program or arrangement;

(vi) any combination of the foregoing methods of payment; or

(vii) such other consideration and method of payment for the issuance of Shares
to the extent permitted by Applicable Laws.

10. Exercise of Option.

(a) Procedure for Exercise; Rights as a Stockholder. Any Option granted
hereunder shall be exercisable according to the terms of the Plan and at such
times and under such conditions as determined by the Administrator and set forth
in the Option Agreement.

An Option may not be exercised for a fraction of a Share.

An Option shall be deemed exercised when the Company receives: (i) written or
electronic notice of exercise (in accordance with the Option Agreement) from the
person entitled to exercise the Option, and (ii) full payment for the Shares
with respect to which the Option is exercised. Full payment may consist of any
consideration and method of payment authorized by the administrator and
permitted by the Option Agreement and the Plan. Shares issued upon exercise of
an Option shall be issued in the name of the Optionee or, if requested by the
Optionee, in the name of the Optionee and his or her spouse. Until the stock
certificate evidencing such Shares is issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such
stock certificate promptly after the Option is exercised. No adjustment will be
made for a dividend or other

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right for which the record date is prior to the date the stock certificate is
issued, except as provided in Section 14 of the Plan.

Exercising an Option in any manner shall decrease the number of Shares
thereafter available, both for purposes of the Plan and for sale under the
Option, by the number of Shares as to which the Option is exercised.

(b) Termination of Employment or Consulting Relationship. Upon termination of an
Optionee's Continuous Status as an Employee or Consultant, other than as
provided for in Sections 10(c), 10(d) and 10(e), the Optionee may exercise his
or her Option, but only within such period of time as is specified in the Notice
of Grant, and only to the extent that the Optionee was entitled to exercise it
at the date of termination (but in no event later than the expiration of the
term of such Option as set forth in the Notice of Grant). In the absence of a
specified time in the Notice of Grant, the Option shall remain exercisable for
three (3) months following the Optionee's termination. If, on the date of
termination, the Optionee is not entitled to exercise the Optionee's entire
Option, the Shares covered by the unexercisable portion of the Option shall
revert to the Plan. If, after termination, the Optionee does not exercise his or
her Option within the time specified by the Administrator, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

(i) Notwithstanding the above, in the event an Optionee's Continuous Status as
an Employee or Consultant terminates and the Optionee performs an act of
Misconduct, all unexercised Options held by such Optionee shall expire five (5)
business days following written notice from the Company to the Optionee.

(ii) Notwithstanding the above, in the event of an Optionee's change in status
from Consultant to Employee or Employee to Consultant, an Optionee's Continuous
Status as an Employee or Consultant shall not automatically terminate solely as
a result of such change in status. However, in the event of an Optionee's change
of status from Employee to Consultant, an Incentive Stock Option held by the
Optionee shall cease to be treated as an Incentive Stock Option and shall be
treated for tax purposes as a Nonstatutory Stock Option three (3) months and one
(1) day following such change of status.

(c) Disability of Optionee. In the event that an Optionee's Continuous Status as
an Employee or Consultant terminates as a result of the Optionee's Disability,
the Optionee may exercise his or her Option at any time within twelve (12)
months from the date of such termination, but only to the extent that the
Optionee was entitled to exercise it at the date of such termination (but in no
event later than the expiration of the term of such Option as set forth in the
Notice of Grant). If, at the date of termination, the Optionee is not entitled
to exercise his or her entire Option, the Shares covered by the unexercisable
portion of the Option shall revert to the Plan. If, after termination, the
Optionee does not exercise his or her Option within the time specified herein,
the Option shall terminate, and the Shares covered by such Option shall revert
to the Plan.

(d) Death of Optionee. In the event of the death of an Optionee, the Option may
be exercised at any time within twenty-four (24) months following the date of
death (but in no event later than the expiration of the term of such Option as
set forth in the Notice of Grant), by the Optionee's estate or by a person who
acquired the right to exercise the Option by bequest or inheritance, but only to
the extent that the Optionee was entitled to exercise the Option at the date of
death. If, at the time of death, the Optionee was not entitled to exercise his
or her entire Option, the Shares covered by the unexercisable portion of the
Option shall immediately revert to the Plan. If, after death, the Optionee's
estate or a person who acquired the right to exercise the Option by bequest or
inheritance does not exercise the Option within the time specified herein, the
Option shall terminate, and the Shares covered by such Option shall revert to
the Plan.

(e) Retirement. In the event that an Optionee's Continuous Status as an Employee
terminates as a result of the Optionee's Retirement, the Optionee may exercise
his or her Option at any time subject to the limitations in the Plan and the
Notice of Grant, but only to the extent that the Optionee was entitled to

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exercise the Option at the time of such termination, unless otherwise expressly
provided in a written agreement between the Optionee and the Company. However,
any Incentive Stock Options not exercised within three (3) months of the
termination of the Optionee's Continuous Status as an Employee shall be treated
for tax purposes as Nonstatutory Stock Options three (3) months and one (1) day
following such Retirement.

(f) Buyout Provisions. The Administrator may at any time offer to buy out for a
payment in cash or Shares, an Option previously granted based on such terms and
conditions as the Administrator shall establish and communicate to the Optionee
at the time that such offer is made.

(g) Rule 16b-3. Options granted to individuals subject to Section 16 of the
Exchange Act ("Insiders") must comply with the applicable provisions of Rule
16b-3 and shall contain such additional conditions or restrictions as may be
required thereunder to qualify for the maximum exemption from Section 16 of the
Exchange Act with respect to Plan transactions.

11. Stock Purchase Rights.

(a) Rights to Purchase. Stock Purchase Rights may be issued either alone, in
addition to, or in tandem with other awards granted under the Plan and/or cash
awards made outside of the Plan. After the Administrator determines that it will
offer Stock Purchase Rights under the Plan, it shall advise the offeree in
writing or electronically, by means of a Notice of Grant, of the terms,
conditions and restrictions related to the offer, including the number of Shares
that the offeree shall be entitled to purchase, the price to be paid, and the
time within which the offeree must accept such offer, which shall in no event
exceed six (6) months from the date upon which the Administrator made the
determination to grant the Stock Purchase Right. The offer shall be accepted by
execution of a Restricted Stock Purchase Agreement in the form determined by the
Administrator. The Administrator may grant a Stock Purchase Right at a price
equal to or in excess of the par value of the Shares; provided, however, for any
calendar year, the aggregate number of shares subject to grants of Stock
Purchase Rights granted during such calendar year with a per Share exercise
price less than the Fair Market Value per Share on the date of grant shall not
exceed ten percent (10%) of the number of Shares subject to Options granted in
the preceding calendar year.

(b) Repurchase Option. Unless the Administrator determines otherwise, the
Restricted Stock Purchase Agreement shall grant the Company a repurchase option
exercisable upon the voluntary or involuntary termination of the purchaser's
employment or in the event of the purchaser's Misconduct with the Company for
any reason (including death or Disability). The purchase price for Shares
repurchased pursuant to the Restricted Stock purchase agreement shall be the
original price paid by the purchaser and may be paid by cancellation of any
indebtedness of the purchaser to the Company. The repurchase option shall lapse
at a rate determined by the Administrator.

(c) Rule 16b-3. Stock Purchase Rights granted to Insiders, and Shares purchased
by Insiders in connection with Stock Purchase Rights, shall be subject to any
restrictions applicable thereto in compliance with Rule 16b-3. An Insider may
only purchase Shares pursuant to the grant of a Stock Purchase Right, and may
only sell Shares purchased pursuant to the grant of a Stock Purchase Right,
during such time or times as are permitted by Rule 16b-3.

(d) Other Provisions. The Restricted Stock Purchase Agreement shall contain such
other terms, provisions and conditions not inconsistent with the Plan as may be
determined by the Administrator in its sole discretion. In addition, the
provisions of Restricted Stock Purchase Agreements need not be the same with
respect to each purchaser.

(e) Rights as a Stockholder. Once the Stock Purchase Right is exercised, the
purchaser shall have the rights equivalent to those of a stockholder, and shall
be a stockholder when his or her purchase is entered upon the records of the
duly authorized transfer agent of the Company. No adjustment will be made for a

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dividend or other right for which the record date is prior to the date the Stock
Purchase Right is exercised, except as provided in Section 14 of the Plan.

12. Withholding Taxes. In accordance with any applicable administrative
guidelines it establishes, the Administrator may allow a purchaser to pay the
amount of taxes required by law to be withheld as a result of a purchase of
Shares or a lapse of restrictions in connection with Shares purchased pursuant
to an Option or Right, by withholding from any payment of Common Stock due as a
result of such purchase or lapse of restrictions, or by permitting the purchaser
to deliver to the Company, Shares having a Fair Market Value, as determined by
the Administrator, equal to the amount of such required withholding taxes.

13. Non-Transferability of Options and Rights. Unless otherwise specified by the
Administrator in the Notice of Grant, an Option or Right may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner other
than by will or by the laws of descent or distribution and may be exercised,
during the lifetime of the Optionee, only by the Optionee.

14. Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset
Sale.

(a) Changes in Capitalization. Subject to any required action by the
stockholders of the Company, the number of shares of Common Stock covered by
each outstanding Option and Right, and the number of shares of Common Stock
which have been authorized for issuance under the Plan but as to which no
Options or Rights have yet been granted or which have been returned to the Plan
upon cancellation or expiration of an Option or Right, as well as the price per
share of Common Stock covered by each such outstanding Option or Right, shall be
proportionately adjusted for any increase or decrease in the number of issued
shares of Common Stock resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of issued shares of Common Stock effected
without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to
have been "effected without receipt of consideration." Such adjustment shall be
made by the Board, whose determination in that respect shall be final, binding
and conclusive. Except as expressly provided herein, no issuance by the Company
of shares of stock of any class, or securities convertible into shares of stock
of any class, shall affect, and no adjustment by reason thereof shall be made
with respect to, the number or price of shares of Common Stock subject to an
Option or Right.

(b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Administrator shall notify each Optionee as soon
as practicable prior to the effective date of such proposed transaction. The
Administrator in its discretion may provide for an Optionee to have the right to
exercise his or her Option or Right until ten (10) days prior to such
transaction as to all of the Optioned Stock covered thereby, including Shares as
to which the Option or Right would not otherwise be exercisable. In addition,
the Administrator may provide that any Company repurchase rights applicable to
any Shares purchased upon exercise of an Option or Right shall lapse as to all
such Shares, provided the proposed dissolution or liquidation takes place at the
time and in the manner contemplated. To the extent it has not been previously
exercised, an Option or Right will terminate immediately prior to the
consummation of such proposed action.

(c) Merger or Asset Sale. In the event of a merger of the Company with or into
another corporation, or the sale of substantially all of the assets of the
Company, each outstanding Option and Right shall be assumed or an equivalent
option or right substituted by the successor corporation or a Parent or
Subsidiary of the successor corporation (the "Successor Corporation"), unless
the Successor Corporation refuses to assume or substitute for the Option or
Right, in which case the Optionee shall have the right to exercise the Option or
Right as to all of the Optioned Stock, including Shares as to which it would not
otherwise be exercisable. If an Option or Right is exercisable in lieu of
assumption or substitution in the event of a merger or sale of assets, the
Administrator shall notify the Optionee in writing or electronically that the
Option or Right shall be fully exercisable for a period of not less than
forty-five (45) days from the date of such notice, and the Option or Right shall
terminate upon the expiration of such period. For

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the purposes of this paragraph, the Option or Right shall be considered assumed
if, following the merger or sale of assets, the option or right confers the
right to purchase or receive, for each Share of Optioned Stock subject to the
Option or Right immediately prior to the merger or sale of assets, the
consideration (whether stock, cash, or other securities or property) received in
the merger or sale of assets by holders of Common Stock for each Share held on
the effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of
the outstanding Shares); provided, however, that if such consideration received
in the merger or sale of assets was not solely common stock of the Successor
Corporation, the Administrator may, with the consent of the Successor
Corporation, provide for the consideration to be received upon the exercise of
the Option or Right, for each Share of Optioned Stock subject to the Option or
Right, to be solely common stock of the Successor Corporation equal in fair
market value to the per share consideration received by holders of Common Stock
in the merger or sale of assets.

15. Date of Grant. The date of grant of an Option or Right shall be, for all
purposes, the date on which the Administrator makes the determination granting
such Option or Right, or such other later date as is determined by the
Administrator. Notice of the determination shall be provided to each Optionee
within a reasonable time after the date of such grant.

16. Amendment and Termination of the Plan.

(a) Amendment and Termination. The Board may at any time amend, alter, suspend
or terminate the Plan.

(b) Stockholder Approval. The Company shall obtain stockholder approval of any
Plan amendment to the extent necessary and desirable to comply with Rule 16b-3
or with Section 422 of the Code (or any successor rule or statute or other
applicable law, rule or regulation, including the requirements of any exchange
or quotation system on which the Common Stock is listed or quoted). Such
stockholder approval, if required, shall be obtained in such a manner and to
such a degree as is required by the applicable law, rule or regulation.

(c) Effect of Amendment or Termination. No amendment, alteration, suspension or
termination of the Plan shall impair the rights of any Optionee, unless mutually
agreed otherwise between the Optionee and the Administrator, which agreement
must be in writing and signed by the Optionee and the Company.

17. Re-pricing Prohibited. The Company shall not decrease the exercise or
purchase price of any outstanding Options or Rights after the date of grant,
except for adjustments made pursuant Section 14, without approval of the
Company's stockholders.

18. Conditions Upon Issuance of Shares.

(a) Legal Compliance. Shares shall not be issued pursuant to the exercise of an
Option or Right unless the exercise of such Option or Right and the issuance and
delivery of such Shares shall comply with all relevant provisions of law,
including, without limitation, the Securities Act of 1933, as amended, the
Exchange Act, the rules and regulations promulgated thereunder, Applicable Laws,
and the requirements of any stock exchange or quotation system upon which the
Shares may then be listed or quoted, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

(b) Investment Representations. As a condition to the exercise of an Option or
Right, the Company may require the person exercising such Option or Right to
represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or
distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required.

19. Liability of Company.

(a) Inability to Obtain Authority. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company's counsel to be necessary to the

                                     II-14
<PAGE>
lawful issuance and sale of any Shares hereunder, shall relieve the Company of
any liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

(b) Grants Exceeding Allotted Shares. If the Optioned Stock covered by an Option
or Right exceeds, as of the date of grant, the number of Shares which may be
issued under the Plan without additional stockholder approval, such Option or
Right shall be void with respect to such excess Optioned Stock, unless
stockholder approval of an amendment sufficiently increasing the number of
Shares subject to the Plan is timely obtained in accordance with Section 16(b)
of the Plan.

20. Reservation of Shares. The Company, during the term of this Plan, will at
all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

21. Continuation of the Plan. Continuation of the Plan shall be subject to
approval by the stockholders of the Company within twelve (12) months before or
after the date the Plan is adopted. Such stockholder approval shall be obtained
in the manner and to the degree required under applicable federal and state law.

                                     II-15<PAGE>
                                                                   Exhibit 10.12

            AGILENT HFSS TECHNOLOGY LICENSE AND TRANSITION AGREEMENT

This Agreement is effective as of the 1st day of May, 2001 ("Effective Date"),
and is by and between Agilent Technologies, Inc., a Delaware corporation having
a place of business at 1400 Fountaingrove Parkway, Santa Rosa, CA, 95403,
("Agilent") and Ansoft Corporation, a Delaware corporation having a place of
business at Four Station Square, Commerce Court, Suite 200, Pittsburgh, PA,
15219, ("Ansoft").

Whereas Ansoft desires to enhance its market position in the High Frequency
Structure Simulator ("HFSS") software business;

Whereas Agilent is willing to license its HFSS software to Ansoft, to transfer
customer obligations for products containing Agilent HFSS software to Ansoft and
to assign to Ansoft all rights it may own in the www.hfss.com domain name (the
"Domain Name"); and

Whereas Ansoft desires to license HFSS technology from Agilent and is willing to
accept the transfer from Agilent;

Now, therefore, and in consideration of the mutual promises herein, the parties
agree as follows:

1       TRANSITION OF CUSTOMER OBLIGATIONS

Ansoft shall assume all customer obligations described in the HFSS Customer
Transition Plan (attached hereto as Exhibit A), according to the schedules set
forth therein.

2       LICENSES AND RESTRICTIONS

        2.1     "Agilent HFSS Software Products" means the high frequency
                structure simulator software programs designed and developed by
                Agilent. This term is meant to include unique source, object,
                and executable code owned by Agilent as well as Agilent original
                works of authorship. Such software and works of authorship are
                limited to those items set forth in Exhibit B, attached hereto
                (entitled "Elements comprising the HFSS Software and the HFSS
                Documentation"). This term does NOT include any software
                provided by third parties, including for example, third party
                software imbedded in the Agilent HFSS products. Such third party
                software includes but is not limited to the list of applications
                set forth in Exhibit C, attached hereto (entitled "Suppliers of
                third-party software imbedded in or used to create the HFSS
                Software").

        2.2     "Ansoft HFSS Software" means the high frequency structure
                simulator software programs licensed and distributed by Ansoft
                including the current version as well as all past and future
                versions and their derivatives. It also includes executable code
                owned by Ansoft as well as any code provided by third parties
                (including code obtained from Agilent HFSS software), that is or
                later becomes embedded in the Ansoft HFSS products.

        2.3     "Ansoft HFSS Documentation" means user documentation associated
                with the Ansoft HFSS Software including, but not limited to user
                manuals, support documentation, and application notes.

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<PAGE>

        2.4     Agilent grants to Ansoft a paid-up worldwide, non-transferable,
                non-exclusive (except as set forth below), perpetual license to
                use, make, have made, reproduce, and modify any and all of its
                intellectual property contained in the Agilent HFSS Software
                Products, including that embodied in the source, executable, or
                object code (collectively " Agilent HFSS Software") and in all
                Agilent documentation directly pertaining to the Agilent HFSS
                Software, including user guides and support documentation
                (collectively "Agilent HFSS Documentation"). The elements
                comprising the Agilent HFSS Software and the Agilent HFSS
                Documentation are set out in Exhibit B.

        2.5     Provided Agilent purchases annual licenses including support,
                Ansoft grants to Agilent paid-up worldwide, non-transferable,
                non-exclusive, annual licenses to use, internal to Agilent and
                to any of its affiliates or subsidiaries, current versions of
                the Ansoft HFSS Software and Ansoft HFSS Documentation. Agilent
                shall be entitled to a maximum of 60 licenses (as such licenses
                are described in Exhibit D attached hereto, entitled "Ansoft
                Licenses"), and Agilent must purchase appropriate annual
                licenses including support (at a price equal to fifteen percent
                (15%) of Ansoft's then-current published list price for such
                licenses) for each license it requests.

        2.6     For a period of three (3) years from the Effective Date, Agilent
                may elect to convert the annual licenses to perpetual licenses
                at a price equal to three (3) times the annual license fee less
                any annual license fees previously paid to Ansoft. Upon
                conversion, the perpetual licenses shall include, at no
                additional charge, maintenance and support for the period ending
                three years from the Effective Date. Subsequent annual support
                contracts shall be consistent with Ansoft's then-current
                published list price for such support contracts.

        2.7     All suppliers of third-party software imbedded in or used to
                create the Agilent HFSS Software are set forth in Exhibit C.
                AGILENT IS NOT ASSIGNING TO ANSOFT ANY OF ITS LICENSES WITH ANY
                OF SAID SUPPLIERS, AND AGILENT MAKES NO REPRESENTATION AS TO
                WHICH OF THESE, IF ANY, ANSOFT REQUIRE A LICENSE FROM IN ORDER
                TO PERFORM ITS OBLIGATIONS HEREUNDER. It is solely Ansoft's duty
                and responsibility, to determine what licenses, if any, it may
                require, and to obtain and pay for said licenses.

        2.8     For a period starting June 15, 2001, and ending three (3) years
                from the Effective Date, neither Agilent nor any of its
                affiliates or subsidiaries shall market, sell or license the
                Agilent HFSS Software or the Agilent HFSS Documentation, or any
                other standalone finite element simulation software, to any
                existing, or potential end users of such software, except upon
                the prior written consent of Ansoft. During this same period,
                Agilent may incorporate, in whole or in part, Agilent owned
                technology from the Agilent HFSS Software, and the associated
                finite element simulation capability, into other Agilent
                software products without restriction, provided it is not
                offered separately as a general purpose three-dimensional
                electromagnetic simulation tool.

        2.9     For the period starting from the Effective Date, and ending
                three (3) years from the Effective Date, neither Agilent, nor
                any of its affiliates or subsidiaries shall market, sell or
                license the Agilent owned source code or other finite element
                simulation technology, contained in the Agilent HFSS Software,
                or the Agilent HFSS Documentation, to the third parties named in
                Exhibit E attached hereto (entitled

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<PAGE>

                "Third -Party Technology Restriction List"), except upon the
                prior written consent of Ansoft.

        2.10    The restrictions of sections 2.8 and 2.9 shall be removed upon
                Agilent's return of, or refusal of, the $1,850,000 payment from
                Ansoft, at any time subsequent to 18 months after the Effective
                Date.

        2.11    The restrictions of sections 2.8 and 2.9 shall also be removed
                should Ansoft, and legal successors fail to continue to offer a
                standalone, finite element simulation tool. Such restrictions
                shall also be removed if Ansoft and its legal successors fail to
                provide the necessary licenses and information to allow Agilent
                to effectively link it's other electronic design automation
                tools to such finite element simulation tool.

        2.12    Sections 2.8 through 2.11 shall not in any way prohibit Agilent
                from selling, or negotiating the potential sale of Agilent's
                Electronic Design Automation business, in whole, or in part, to
                any third party, at any time. In the event that a sale occurs
                during the three (3) year period, and such sale includes Agilent
                HFSS Software or Agilent HFSS Documentation, the purchaser shall
                take subject to all of the terms, rights, and restrictions of
                sections 2.8 through 2.11. The terms of this agreement may be
                disclosed to prospective third parties, without Ansoft's
                permission, to the extent necessary to provide appropriate
                disclosures and to assure compliance with this section.

        2.13    Ansoft will receive seventy-five (75) percent of the after tax
                revenue for any orders for Agilent HFSS Software and Agilent
                HFSS Software support contracts received by Agilent during the
                period between the Effective Date and June 15, 2001. Agilent
                will remit payment to Ansoft, on July 31, 2001.

        2.14    For a period starting June 15, 2001, and ending seven (7) years
                from the Effective Date, neither Agilent nor any of its
                affiliates or subsidiaries shall market the HFSS name in any
                form whatsoever, except in referring to Ansoft's HFSS software.

3       Assignment of Domain Names
        Concurrently with the execution of this Agreement, Agilent hereby
        assigns to Ansoft all of Agilent's right, title and interest in and to
        the Domain Name. Agilent will takes such steps as may be necessary,
        appropriate or convenient in order to record and effectuate such
        assignment, including, without limitation, making such filings with
        Network Solutions, Inc. as may be requested by Ansoft.

4       Compensation to Agilent

        4.1     On the Effective Date, Ansoft shall pay Agilent $6,000,000.00,
                and on October 31, 2002, Ansoft shall pay Agilent an additional
                $1,850,000 in full consideration for the promises made and the
                licenses granted herein, and for the transfer and assumption of
                all relevant customer support.

        4.2     Said payments shall be made payable to Agilent Technologies,
                Inc. and remitted to Vince Barich MS 52U-63, Agilent
                Technologies, Inc., 5301 Stevens Creek Blvd., Santa Clara, CA
                95051-7295.

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<PAGE>

5       INDEMNIFICATION

        5.1     Agilent shall defend and indemnify Ansoft and hold it harmless
                from any and all losses, damages, costs and out-of-pocket
                expenses, including reasonable attorneys' fees, incurred by
                Ansoft that result from any claim, lawsuit, proceeding, or other
                action, whether legal or equitable, by a third party alleging
                that the unmodified Agilent HFSS Software Products or the Domain
                Name infringes any copyright, trade secret, patent, or other
                intellectual property right, anywhere in the world. Counsel
                provided by Agilent to represent Ansoft shall be mutually
                acceptable to both parties. Ansoft may participate in any such
                claim at its own expense.

        5.2     Agilent shall have no obligation under Section 5.1:

                5.2.1   If Ansoft does not: (i) notify Agilent in writing of any
                        such claim within 30 days of Ansoft's receipt of such
                        claim, (ii) allow Agilent to assume sole control of the
                        defense and any settlement negotiations related to such
                        claim, or (iii) cooperate with Agilent, at Agilent's
                        expense, in the defense and settlement of such claim, or

                5.2.2   For any HFSS Software or portions or components thereof:
                        (i) that are not supplied by Agilent, (ii) that are
                        modified by a party other than Agilent, if the alleged
                        infringement relates to such modification, (iii) that
                        are combined with other products, processes or materials
                        where the alleged infringement relates to such
                        combination, (iv) that are used in a way prohibited by
                        Specifications or related application notes, or (v) to
                        the extent Ansoft continues allegedly infringing
                        activity after being notified thereof and of
                        modifications that would have avoided the alleged
                        infringement without significant loss of performance,
                        compatibility or functionality, provided that such
                        modifications are provided by Agilent to Ansoft at no
                        expense to Ansoft.

        5.3     Agilent's obligations under Section 4.1 and 4.2 above describe
                Ansoft's sole and exclusive remedy against Agilent for a third
                party claim that the Agilent HFSS Software Products, the HFSS
                Documentation or the Domain Name infringes or misappropriates a
                third party's intellectual property rights.

        5.4     Ansoft shall defend and indemnify Agilent and hold it harmless
                from any and all losses, damages, costs, and out of pocket
                expenses, including reasonable attorneys' fees, incurred by
                Agilent that result from any claim, lawsuit, proceeding, or
                other action arising on or after the Effective Date, whether
                legal or equitable, brought by a third party alleging that the
                Ansoft HFSS Software, whether or not modified, infringes any
                copyright, trade secret, patent, or other intellectual property
                right, anywhere in the world. Counsel provided by Ansoft to
                represent Agilent shall be mutually acceptable to both parties.

        5.5     Ansoft shall have no obligation under Section 5.4:

                5.5.1   If Agilent does not: (i) notify Ansoft in writing of any
                        such claim within 30 days of Agilent's receipt of such
                        claim, (ii) allow Ansoft to assume

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<PAGE>

                        sole control of the defense and any settlement
                        negotiations related to such claim, or (iii) cooperate
                        with Ansoft, at Ansoft's expense, in the defense and
                        settlement of such claim, or

                5.5.2   For any Ansoft HFSS Software or portions or components
                        thereof: (i) that are not supplied to Agilent by or on
                        behalf of Ansoft, (ii) that are modified by or on behalf
                        of an entity other than Ansoft, if the alleged
                        infringement relates to such modification, (iii) that
                        are combined with other products, processes or materials
                        where the alleged infringement relates to such
                        combination, (iv) that are used in a way prohibited by
                        Specifications or related application notes, or (v) to
                        the extent Agilent continues allegedly infringing
                        activity after being notified thereof and of
                        modifications that would have avoided the alleged
                        infringement without significant loss of performance,
                        compatibility or functionality provided that such
                        modifications are provided by Ansoft to Agilent at no
                        expense to Agilent..

        5.6     Ansoft shall further indemnify and defend Agilent and hold it
                harmless from any and all third party claims, actions, damages,
                liabilities, costs and expenses, including reasonable attorneys'
                fees and expenses, arising out of or relating in any way to
                Ansoft's obligations set out in Exhibit "A", including the
                performance or non-performance thereof.

        5.7     This Section 4 states the entire liability of each party to the
                other for claims of intellectual property infringement.

6       CONFIDENTIALITY

        6.1     The terms of this Agreement are confidential and each party
                shall use the same degree of care to prevent disclosure of the
                terms of this Agreement to third parties as it uses to protect
                its own confidential information of similar nature. In no event
                will this obligation of confidentiality preclude any disclosure
                required by law or by a regulatory authority, provided that
                prior to making any such disclosure of the terms of this
                Agreement a party shall promptly consult in advance with the
                other party and shall use all commercially reasonable efforts to
                obtain written assurance that confidential treatment will be
                accorded to such information. Notwithstanding, either party may
                disclose terms of this agreement upon receipt of and under
                conditions provided in an authorized letter from the other
                party.

        6.2     The source code versions of the Agilent HFSS Software and all
                other information and documentation so designated that are
                produced or disclosed to Ansoft pursuant to this Agreement are
                confidential, and Ansoft shall protect them by using the same
                degree of care, but no less than a reasonable degree of care, to
                prevent any unauthorized use, dissemination, or publication as
                Ansoft uses to protect its own confidential information of a
                like nature.

        6.3     Except for the confidential information specifically referred to
                in this Agreement or its Exhibits (including Sections 5.1 and
                5.2 above), neither party desires additional confidential
                information of the other. However, each party provide the other
                such non-confidential information as may, from time to time,
                become necessary to implement this Agreement and its purposes.

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<PAGE>

7       LIMITATION OF LIABILITY

        7.1     agilent makes no representation or warranty regarding the
                accuracy or completeness of the Agilent HFSS Software, Agilent
                HFSS Documentation, customer list or any other technology and
                information disclosed to Ansoft under this Agreement. ALL
                LICENSES FROM AND DISCLOSURES BY AGILENT ARE PROVIDED ON AN "AS
                IS" BASIS. Agilent is not obligated to correct, update, upgrade
                or revise in any way, any of the Agilent HFSS Software or
                Agilent HFSS Documentation.

        7.2     AGILENT DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES, INCLUDING
                BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY,
                FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. AGILENT
                FURTHER DISCLAIMS ANY WARRANTY THAT THE HFSS SOFTWARE WILL WORK,
                BE FREE FROM PROGRAM ERRORS, OR SUCCEED IN PERFORMING ANY TASK
                OR RESOLVING ANY PROBLEM.

        7.3     ANSOFT DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES, INCLUDING
                BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY,
                FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. ANSOFT
                FURTHER DISCLAIMS ANY WARRANTY THAT THE ANSOFT HFSS SOFTWARE OR
                ANSOFT HFSS DOCUMENTATION WILL WORK, BE FREE FROM PROGRAM
                ERRORS, OR SUCCEED IN PERFORMING ANY TASK OR RESOLVING ANY
                PROBLEM.

        7.4     TO THE FULLEST EXTENT PERMITTED BY LAW, UNLESS EXPRESSLY
                PROVIDED OTHERWISE UNDER THIS AGREEMENT, NEITHER PARTY WILL BE
                LIABLE TO THE OTHER FOR ANY SPECIAL OR CONSEQUENTIAL DAMAGES OF
                THE OTHER (INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS) ARISING
                OUT OF ANY PERFORMANCE OF THIS AGREEMENT OR IN FURTHERANCE OF
                THE PROVISIONS OR OBJECTIVES OF THIS AGREEMENT, REGARDLESS OF
                WHETHER SUCH DAMAGES ARE BASED ON TORT, WARRANTY, CONTRACT OR
                ANY OTHER LEGAL THEORY, EVEN IF ADVISED OF THE POSSIBILITY OF
                SUCH DAMAGES.

        7.5     NOTWITHSTANDING ANYTHING ELSE IN THIS AGREEMENT OR OTHERWISE,
                EXCEPT FOR BODILY INJURY OR DAMAGES CAUSED BY EITHER PARTY'S
                GROSS NEGLIGENCE OR WILFULL MISCONDUCT, , NEITHER PARTY SHALL BE
                LIABLE TO THE OTHER, IN THE CASE OF ANSOFT FOR AN AMOUNT IN
                EXCESS OF $1,000,000.00 AND IN THE CASE OF AGILENT
                $3,000,000.00.

8       COPYRIGHT NOTICES

        8.1     Object Code. Ansoft shall assure that all object code
                distributed by it or on its behalf will include the following
                Copyright Notice, if applicable:

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<PAGE>

                8.1.1   This software incorporates code owned by Agilent
                        Technologies, Inc.

                8.1.2   Copyright ((C))Agilent Technologies, Inc 1977-2000.

        8.2     The Copyright Notice included with all distributed object code:

                8.2.1   Shall be affixed in a prominent location on the media,
                        in the Documentation on the media packaging, and in a
                        readable file in the object code; and

                8.2.2   Shall appear on at least one display screen for at least
                        two seconds during execution of the object code.

        8.3     Source Code. Ansoft shall assure that all Source Code has the
                following legend, if applicable, affixed to it in a prominent
                location on the media, and in a readable file in the code:

                8.3.1   This software incorporates code owned by Agilent
                        Technologies, Inc.
                        8.3.1.1 Copyright ((C))Agilent Technologies, Inc
                                1977-2000.

9       NON-SOLICITATION

During the term of this Agreement and for a period of six months after the
Effective Date, neither party shall solicit or employ any personnel of the other
without prior written consent from the current employer.

10      DUE DILIGENCE

Information with regard to Agilent's software product sales revenue and the
number of supported Agilent HFSS Software licenses was provided by Agilent to
Ansoft in the thirty (30) day period prior to the Effective Date. If an error of
more than ten (10) percent, in either of these totals, is discovered and
reported in writing, by either party within sixty (60) days of the Effective
Date, Agilent and Ansoft agree to negotiate in good faith, reasonable and
appropriate adjustments to the terms of this agreement. Such adjustments shall
be consistent with the nature and magnitude of the error reported.

11      MISCELLANEOUS

        11.1    This Agreement (including any attached exhibits) constitutes the
                entire agreement between the parties relating to the subject
                matter hereof, and supersedes all prior proposals, agreements,
                representations and other communications between the parties
                with respect to the same.

        11.2    No change in the provisions of this Agreement shall be valid
                unless in writing and signed by both parties.

        11.3    Neither party shall assign this Agreement to any party at any
                time without the written consent of the other party. Any
                purported assignment without the consent of the other party
                shall be void.

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<PAGE>

        11.4    This Agreement is binding upon and shall inure to the benefit of
                the legal successors and assigns of the parties.

        11.5    The failure or delay of either party in exercising any of its
                rights hereunder, including any rights with respect to a breach
                or default by the other party, shall in no way operate as a
                waiver of such rights or prevent the assertion of such rights
                with respect to any later breach or default by the other party.

        11.6    If any term or other provision of this Agreement is invalid,
                illegal or incapable of being enforced by any rule of law or
                public policy, all other conditions and provisions of this
                Agreement shall nevertheless remain in full force and effect so
                long as the economic or legal substance of the transactions
                contemplated hereby is not affected in any manner materially
                adverse to any party. Upon such determination that any term or
                other provision is invalid, illegal or incapable of being
                enforced, the parties hereto shall negotiate in good faith to
                modify this Agreement so as to effect the original intent of the
                parties as closely as possible in an acceptable manner to the
                end that the transactions contemplated hereby are fulfilled to
                the fullest extent possible.

        11.7    Nothing contained in this Agreement shall be deemed to grant,
                either directly or by implication, estoppel, or otherwise, any
                licenses under patents or other intellectual property rights
                other than as specifically provided in this Agreement. In
                particular, nothing in this Agreement shall be read to license
                the design patents, copyrights, mask works, trademarks, trade
                names, trade dress or trade secrets (or other confidential
                information) of either party to the other party.

        11.8    The headings used in this Agreement are for reference and
                convenience only and shall not be used in interpreting the
                provisions of this Agreement.

        11.9    The parties agree that this Agreement shall be governed by and
                construed in accordance with the internal substantive laws of
                the Commonwealth of Pennsylvania, without regard to its choice
                of law provisions.

        11.10   The parties shall jointly plan and coordinate any publicity
                regarding the subject matter of this Agreement. Except as
                required by law or court order, or as reasonably needed in
                connection with a financial transaction, neither party shall
                publicize or disclose the terms of this Agreement nor any of the
                plans and strategies contained in Exhibit A without the prior
                written approval of the other party.

        11.11   This Agreement shall not confer any rights or remedies upon any
                Person other than the Parties and their respective successors
                and permitted assigns.

        11.12   No Party shall issue any press release or public announcement
                relating to the subject matter of this Agreement prior to the
                Closing without the prior written approval of the other Party;
                provided, however, that any Party may make any public disclosure
                it believes in good faith is required by applicable law or any
                listing or trading agreement concerning its publicly-traded
                securities (in which case the disclosing Party will use its
                reasonable commercial efforts to advise the other Party prior to
                making the disclosure.)

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<PAGE>

        11.13   The Parties have participated jointly in the negotiation and
                drafting of this Agreement. In the event an ambiguity or
                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 of the
                provisions of this Agreement. Any reference to any federal,
                state, local, or foreign statute or law shall be deemed also to
                refer to all rules and regulations promulgated thereunder,
                unless the context requires otherwise. 11.14 The Exhibits and
                Schedules identified in this Agreement are incorporated herein
                by reference and made a part hereof.

        11.15   Nothing contained herein shall be construed as creating any
                agency, employment relationship, partnership, principal-agent,
                joint venture, or other form of joint enterprise between the
                parties. Further, nothing contained herein shall confer on
                either party the right to act for or bind the other in any
                regard.

        11.16   Each of the undersigned represents and warrants that she/he has
                read and understands this Agreement, that it accurately and
                completely represents the intention of the parties, and that
                she/he has the actual authority to sign this agreement on behalf
                of entity for which she/he purports to act.

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

        11.18   All notices, requests, demands, claims, and other communications
                hereunder will be in writing. Any notice, request, demand,
                claim, or other communication hereunder shall be deemed duly
                given if (and then two business days after) it is sent by
                registered or certified mail, return receipt requested, postage
                prepaid, and addressed to the intended recipient as set forth
                below:

                To Agilent:
                    Agilent Technologies, Inc.
                    Agilent Comms EDA
                    1400 Fountaingrove Parkway
                    Santa Rosa, CA  95403
                    Attn: Brian Buchanan  MS: 2US-B

                To Ansoft:
                    Ansoft Corporation
                    Four Station Square
                    Commerce Court, Suite 600
                    Pittsburgh, PA, 15219
                    Attn: Tony Ryan

Any Party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the address set forth above using any
other means (including personal delivery, expedited courier, messenger service,
telecopy, ordinary mail, or electronic mail), but no such notice, request,
demand, claim, or other communication shall be deemed to have been duly given
unless and until it actually is received by the intended recipient, as
established by an oral or written acknowledgement by the recipient, by hand
receipt from the courier, or otherwise. Any Party may change the address to
which notices, requests, demands, claims, and other

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Agilent and Ansoft Proprietary Information                         July 24, 2003
Page 9 of 19
<PAGE>

communications hereunder are to be delivered by giving the other Party notice in
the manner herein set forth.

    [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

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Agilent and Ansoft Proprietary Information                         July 24, 2003
Page 10 of 19
<PAGE>

    In Witness whereof, this Agreement is executed by a duly authorized
    representative of each party on the dates shown.

           AGILENT TECHNOLOGIES, INC.              ANSOFT CORPORATION

           -----------------------------           -----------------------------
           (Signature)                             (Signature)

           -----------------------------           -----------------------------
           (Typed or Printed Name)                 (Typed or Printed Name)

           -----------------------------           -----------------------------
           (Title)                                 (Title)

<TABLE>
<CAPTION>
Exhibit List:
-------------
<S>        <C>
Exhibit A: HFSS Customer Transition Plan
Exhibit B: Elements comprising the HFSS Software and the HFSS Documentation
Exhibit C: Suppliers of third-party software imbedded in or used to create the HFSS Software
Exhibit D: Ansoft Licenses
Exhibit E: Third Party Technology Restrictions
</TABLE>

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Agilent and Ansoft Proprietary Information                         July 24, 2003
Page 11 of 19

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