Document:

<PAGE>
                                                                    EXHIBIT 10.7

                        THE ULTIMATE SOFTWARE GROUP, INC.
                         NONQUALIFIED STOCK OPTION PLAN
                             AS AMENDED AND RESTATED
                             AS OF DECEMBER 20, 2002

                  1. PURPOSE OF THE PLAN. The purpose of The Ultimate Software
Group, Inc. Nonqualified Stock Option Plan (the "Plan") is to further the
long-term growth in earnings of the Ultimate Software Group, Inc. (the
"Company") by offering special incentives in the form of a nonqualified stock
option plan for the benefit of those officers, directors and employees of the
Company and its Subsidiaries who have been and will be largely responsible for
such growth. It is the express purpose of this Plan to provide such officers,
directors and employees with the opportunity to acquire or increase their equity
ownership in the Company through the purchase of shares of the Company's Common
Stock, par value $.01 per share, under a plan which is not designed to meet the
requirements of Section 422 of the Internal Revenue Code of 1986, as amended
(the "Code").

                  2. DEFINITIONS. The singular shall include the plural and vice
versa, and the use of one gender shall be deemed to include the other whenever
appropriate.

                  a. Board - The Board of Directors of the Company.

                  b. Change of Control -

                           (i) The consummation of any consolidation or merger
of the Company pursuant to which the stockholders of the Company immediately
prior to the merger or consolidation do not represent, immediately after the
merger or consolidation, the beneficial owners (within the meaning of Rule 13d-3
under the Securities Exchange Act of 1934 (the "Exchange Act")) of 50% or more
of the combined voting power of the Company's (or the surviving entity's) then
outstanding securities ordinarily (and apart from rights occurring in special
circumstances) having the right to vote in the election of directors;

                           (ii) The consummation of any sale, lease, exchange or
transfer (in any single transaction or series of related transactions) of all or
substantially all of the assets or business of the Company and its Subsidiaries;
or

                           (iii) The occurrence of any event the result of which
is that any "person" (as such term is used in Sections 13(d)(3) and 14(d)(2) of
the Exchange Act), other than (A) the Company or any Subsidiary, or (B) any
employee benefit plan sponsored by the Company or any Subsidiary, shall become
the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act)
of securities of the Company representing more than 50% of the combined voting
power of the Company's then outstanding securities ordinarily (and apart from
rights accruing in special circumstances) having the right to vote in the
election of directors, as a result of a tender, leveraged buyout or exchange
offer, open market purchases, privately negotiated purchases, other arrangements
or understandings or otherwise.

                  c. Committee - The Compensation Committee of the Board, or
such other committee or subcommittee of the Board appointed by the Board to
administer the Plan from time to time.
<PAGE>

                  d. Employee - Any person, including any officer, employed by
the Company or any Subsidiary of the Company.

                  e. Employment - The time period during which any individual is
an Employee.

                  f. Fair Market Value - With respect to the value of the Stock
as of a particular day, the last reported sale price (as reported on The Nasdaq
Stock Market's National Market) of such Stock on such day (unless such day is
not a trading day, in which case, on the last trading day immediately preceding
such day on which the Stock is traded on The Nasdaq Stock Market's National
Market). If the Stock is not listed on The Nasdaq Stock Market's National
Market, the Committee shall determine in good faith the Fair Market Value in
whatever manner it considers appropriate.

                  g. Fee Option - A stock option granted in lieu of certain
directors fees under Section 13 of the Plan.

                  h. Fees - All compensation earned by a Non-employee Director
for services rendered by him as a Non-employee Director, including any retainer
or fees for participating in meetings of the Board or of any standing or special
committee of the Board, other than such compensation, if any, as the Board
determines shall be paid in cash.

                  i. Non-employee Director - Any current or former member of the
Board who is not an officer or employee of the Company.

                  j. Option - A Participant's right to purchase one or more
shares of Stock, as granted and determined in accordance with the provisions of
this Plan.

                  k. Option Price - The amount to be paid for the purchase of
shares of Stock on exercise of an Option as determined by the Committee.

                  l. Participant - A Person who becomes eligible to participate
in this Plan under Section 4 hereof.

                  m. Permanent and Total Disability - The inability of a
Participant to engage in his normal employment activity for the Company (or to
serve as a member of the Board) by reason of any medically determined physical
or mental impairment that can be expected to result in death or that can be
expected to last for a continuous period of not less than 12 months.

                  n. Person - includes a natural person, corporation,
partnership, limited liability company, trust, or similar entity, or any group
of any of the foregoing acting in concert with respect to their ownership of
capital stock of the Company.

                  o. Stock - The Company's Common Stock, par value $.01 per
share.

                  p. Subsidiary - Any corporation of which 50 percent or more of
the combined voting power of all classes of stock is owned by the Company or a
Subsidiary of the Company.

                  3. ADMINISTRATION OF THE PLAN.

                  a. Subject to the provisions of the Plan (including, without
limitation, the provisions of Section 13 hereof concerning Fee Options), the
Committee shall have exclusive power to select the Persons to be granted Options
pursuant to the Plan, to determine the number of shares of Stock to be covered

                                       2
<PAGE>

by any Option, to determine the Option Price for any Stock, and to determine the
conditions subject to which Options may be granted or exercised.

                  b. The Plan shall be administered by the Committee comprised
of no fewer than two directors selected by the Board. Solely to the extent
deemed necessary or advisable by the Board, each Committee member shall meet the
definition of a "Non-employee director" for purposes of such Rule 16b-3 under
the Exchange Act and of an "outside director" under Section 162(m) of the Code.
The Committee may appoint a subcommittee of its members constituting "outside
directors" under Section 162(m) of the Code in connection with the grant of
Options intended to satisfy the performance-based compensation exemption under
Section 162(m) of the Code. The Board shall also have the authority to exercise
the powers and duties of the Committee under the Plan. Membership on the Board
or the Committee shall in no way affect the eligibility of a Person for
participation in the Plan; provided, however, that no such member shall
participate in any decision affecting solely his interest or participation in
the Plan.

                  c. Decisions and determinations by the Committee shall be
final and binding upon all parties, including stockholders, Participants,
Beneficiaries and other Employees. The Committee shall have the authority to
interpret the Plan, to establish and revise rules and regulations relating to
the Plan, and to make any other determinations that it believes necessary or
advisable for the administration of the Plan.

                  d. The Company shall supply full and timely information to the
Committee on all matters relating to Employees, including the occurrence of any
Employee's death, disability or other termination of employment, and such other
pertinent facts as the Committee may require. The Company shall furnish the
Committee with such clerical and other assistance as is necessary in the
performance of its duties.

                  e. The Committee shall have the right, from time to time, to
delegate to one or more officers of the Company the authority of the Committee
to grant and determine the terms and conditions of Options granted under the
Plan, subject to such limitations as the Committee shall determine, as and in
the manner required by Section 157(c) of the Delaware General Corporation Law;
provided, however, that no such authority may be delegated with respect to
Options awarded to any member of the Board or any Participant who the Committee
determines may be subject to Rule 16b-3 under the Exchange Act, or with respect
to Options which are intended to satisfy the performance-based compensation
exception under Section 162(m) of the Code.

                  4. PARTICIPATION. Participants in the Plan shall be selected
by the Committee from among the officers, directors and Employees of the Company
and its Subsidiaries.

                  5. EFFECTIVE DATE AND TERMINATION OF PLAN.

                  a. The Plan was originally adopted on April 25, 1996 and was
amended and restated on October 26, 2000, March 20, 2002 and December 20, 2002.

                  b. The Plan shall terminate on April 25, 2006, but the Board
may terminate the Plan at any time prior thereto. Termination of the Plan under
this Section 5(b) (or under Section 14(d)) shall not alter or impair any rights
or obligations under any outstanding Option without the consent of the holder of
the Option.

                                       3
<PAGE>

                  6. LIMITATIONS ON NUMBER OF SHARES SUBJECT TO OPTIONS.

                  a. Subject to Section 12 hereof, the number of shares of Stock
that may be issued pursuant to Options granted under this Plan shall not exceed
9,000,000. Shares of Stock issued and sold under the Plan may be either
authorized but unissued shares or shares held in the Company's treasury. Shares
of Stock covered by an Option that shall have been exercised shall not again be
available for an Option grant. If an Option shall expire or terminate for any
reason (including, without limitation, the cancellation of an Option pursuant to
Section 9(e) below), the unpurchased shares subject to such expired or
terminated Option may again be optioned under this Plan, subject to its terms.
In addition, any shares of Stock exchanged by a Participant as full or partial
payment to the Company of the Option Price or tax withholding upon exercise of
an Option shall be added to the number of shares of Stock available for issuance
under the Plan from time to time.

                  b. The maximum number of shares of Stock that may be subject
to Options granted under this Plan to any Participant during any one calendar
year shall be 500,000 shares, subject to adjustment as provided in Section 12
hereof.

                  7. DURATION OF OPTIONS. Subject to Section 10 and Section
13(f) hereof, any Option granted to a Participant shall cease to be exercisable
on the tenth anniversary of the date of grant, or at such other date as may be
determined by the Committee.

                  8. OPTION PRICE. Subject to Section 13(c) hereof, the Option
Price for each share of Stock subject to any Option granted to Participants
shall be equal to the Fair Market Value of such share as of the date on which
the Option is granted, or such other amount as may be determined by the
Committee.

                  9. TERMS OF EXERCISE.

                  a. Medium of Payment. The Option Price for shares purchased
through the exercise of an Option shall be payable either in cash, in shares of
Stock, or in any combination thereof, as determined by the Committee. If shares
of Stock are used as the medium of payment, the Fair Market Value of such shares
of Stock shall be determined as of the date on which the payment is made. As an
alternative, payment of the Option Price shall be deemed satisfied (i) if the
Stock is listed on a national securities exchange, by delivery to the Company of
an assignment of a sufficient amount of the proceeds from the sale of Stock
acquired upon exercise to pay for all of the Stock acquired upon exercise and an
authorization to the broker or selling agent to pay that amount to the Company,
which sale shall be made at the Participant's direction at the time of exercise,
and (ii) if the Stock is not listed on a national securities exchange or as
otherwise determined by the Committee and set forth in an Option Agreement, by
having the Company withhold a number of shares of Stock otherwise issuable to
the Participant upon exercise of the Option, the Fair Market Value of which
equals the Option Price. For purposes hereof, the Fair Market Value of the
shares of Stock delivered and withheld shall be determined as of the date on
which the Option is exercised. In lieu of the delivery to the Participant of any
fractional share of Stock that would otherwise be due to him hereunder, the
Company shall pay the value of such fractional share to the Participant in cash.

                  In addition to and at the time of payment of the Option Price,
the Participant shall pay to the Company in cash or, at the discretion of the
Committee, in Stock the full amount of all federal and state withholding and
other employment taxes applicable to the taxable income of such Participant
resulting from such exercise.

                                       4
<PAGE>

                  b. Transferability of Options. All Options shall be
nontransferable except (i) upon the Participant's death, by the Participant's
will or the laws of descent and distribution or (ii) on a case-by-case basis as
may be approved by the Committee in its discretion, in accordance with the terms
provided below. Each Option Agreement may provide that the Participant may,
during his lifetime and subject to the prior approval of the Committee at the
time of proposed transfer, transfer all or part of the Option to or for the
benefit of a Permitted Transferee in a manner consistent with the requirements
for a Form S-8 registration statement under the Securities Act of 1933, as
amended ("Form S-8"). The transfer of an Option shall be subject to such other
terms and conditions as the Committee may in its discretion impose from time to
time, including a condition that the portion of the Option to be transferred be
vested and exercisable by the Participant at the time of transfer. Subsequent
transfers of an Option transferred under this Section 9(b) shall be prohibited
other than by will or the laws of descent and distribution upon the death of the
transferee.

                  For purposes hereof, a "Permitted Transferee" shall mean a
Participant's family member. For purposes of the preceding definition, a "family
member" includes any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
including adoptive relationships, any person sharing the employee's household
(other than a tenant or employee), a trust in which these persons have more than
fifty percent of the beneficial interest, a foundation in which these persons
(or the Participant) control the management of assets, and any other entity in
which these persons (or the Participant) own more than fifty percent of the
voting interests. The terms "Permitted Transferee" and "family member" shall
have such other meanings, as determined by the Committee from time to time,
consistent with the requirements for a Form S-8.

                  c. Transferability of Stock. All Options shall be granted on
the condition that the Participant shall not resell any Stock purchased by the
exercise of an Option except in compliance with all applicable State and Federal
securities laws and regulations. Unless there is a registration statement in
effect with respect to the resale of Stock subject to an Option held by the
Participant, each Participant shall, prior to the exercise of any Option,
deliver to the Company a written representation in form satisfactory to the
Committee that it is his intention to acquire the shares for investment and not
for resale, and each Participant shall, prior to any transfer of Stock purchased
through the exercise of an Option, advise the Company of the proposed transfer
and demonstrate, to the satisfaction of the Committee, that such transfer is in
compliance with such laws and regulations. The Company reserves the right to
legend any Stock Certificates, conditioning sales of such Stock upon compliance
with applicable federal and state securities laws and regulations.

                  d. Vesting. Subject to Section 13(e) hereof, the Committee, in
its sole discretion, shall prescribe vesting periods for each Participant's
Option Agreement and may accelerate the exercisability of any Option at any
time. An Option shall also become 100 percent vested and exercisable upon the
Participant's Permanent and Total Disability, the Participant's death, or a
Change of Control, unless otherwise determined by the Committee and set forth in
an Option Agreement.

                  e. Cancellation, Substitution and Amendment of Options. The
Committee shall have the authority to effect, at any time and from time to time,
with the consent of the affected Participants, (i) the cancellation of any or
all outstanding Options and the grant in substitution therefor of new Options
covering the same or different numbers of shares of Stock and having an Option
Price which may be the same as or different than the Option Price of the
cancelled Options or (ii) the amendment of the terms of any and all outstanding
Options.

                                       5
<PAGE>

                  f. Other Terms. The Committee at the date of grant or the
Committee thereafter shall have the power to determine such additional terms for
the exercise of Options not inconsistent with the terms of this Plan as it deems
appropriate.

                  10. TERMINATION. Except as provided in Section 13(f) hereof
with respect to Options granted to Non-employee Directors, if any Participant's
Employment should terminate for any reason other than his death or Permanent and
Total Disability, at a time when one or more of the Participant's Options
remains outstanding, then each such Option shall terminate on the earlier to
occur of the date provided in the Option Agreement or the date that is 90 days
after the date of such termination of Employment; provided, however, that such
90 day period may be extended for any such Participant (but not beyond the
respective terms of the Participant's Options) upon determination of the
Committee following recommendation of the Chief Executive Officer. In such
event, the Participant's Options shall be exercisable during such period after
termination of Employment only to the extent vested and exercisable on the date
of such termination. Notwithstanding the foregoing, if a Participant's
Employment with the Company should be terminated for cause, the Participant's
right to exercise any unexercised portion of his Option shall immediately
terminate and all rights thereunder shall cease. For purposes hereof,
termination for "cause" shall include, but not be limited to, embezzlement or
misappropriation of corporate funds, any acts of dishonesty resulting in
conviction for a felony, misconduct resulting in material injury to the Company,
significant activities harmful to the reputation of the Company, a significant
violation of Company policy, willful refusal to perform, or substantial
disregard of, the duties properly assigned to the Participant, or a significant
violation of any contractual, statutory or common law duty of loyalty to the
Company; provided, that in the event there is an employment agreement between
the Company or any Subsidiary of the Company and the Participant in effect on
the date of termination, "cause" shall have the meaning given to such term
therein. The Committee shall have the power to determine whether the Participant
has been terminated for cause and the date upon which such termination for cause
occurs. Any such determination shall be final, conclusive and binding upon the
Participant. In the event a Participant dies during Employment or terminates
Employment by reason of Permanent and Total Disability with one or more
outstanding Options, the Participant's outstanding Options shall continue to be
exercisable until one year after the date of such death or disability; provided,
however, that such one year period may be extended for any such Participant (but
not beyond the respective terms of the Participant's Options) upon determination
of the Committee following recommendation of the Chief Executive Officer.

                                       6
<PAGE>

                  11. OPTION AGREEMENTS. Upon the grant of any Option hereunder,
the Participant shall be required to sign or have in effect an Option Agreement,
in such form as shall be prescribed by the Committee, reflecting the terms and
conditions of the Option. Each such Option Agreement shall refer to this Plan
and shall give notice to the Participant that all Options are subject to the
terms and conditions of this Plan.

                  12. ANTI-DILUTION PROVISIONS. In the event of a
reorganization, recapitalization, stock split, stock dividend, combination of
shares, merger or consolidation, or the sale, conveyance, lease or other
transfer by the Company of all or substantially all of its property, or any
other change in the corporate structure or shares of the Company, pursuant to
any of which events the then outstanding shares of Stock are split up or
combined, or are changed into, become exchangeable at the holder's election for,
or entitle the holder thereof to, other shares, of stock, or in the case of any
other transaction described in Section 424(a) of the Code, the Board shall
change (i) the number and kind of shares (including by substitution of shares of
another corporation) subject to the Options and/or the Option Price of such
shares, (ii) the maximum number and kind of shares that may be granted to any
one individual under Section 6(b) hereof, and (iii) the number and kind of
shares (including by substitution of shares of another corporation) that may be
issued pursuant to Options granted under this Plan, in the manner that it shall
deem to be equitable and appropriate.

                  Notwithstanding anything herein to the contrary and unless
otherwise determined by the Committee and set forth in an Option Agreement, upon
a Change of Control in which shares of Stock are converted into cash, securities
or other property, any outstanding Option shall be terminated and the
Participant shall receive, with respect to each share of Stock issuable under
any Option outstanding at such time, a payment in cash equal to the excess of
the Change of Control Price (as defined below) of the Stock over the Option
Price of the Stock less amounts withheld in satisfaction of applicable federal
and state withholding and other employment taxes. For purposes of this section,
Change of Control Price shall mean the average fair market value (as determined
by the Board in good faith) of such cash, securities and other property
received, in connection with the Change of Control, by holders of Stock with
respect to each share of Stock.

                  13. FEE OPTIONS.

                  a. Grant of Fee Option. Subject to Section 13(f) hereof, as of
each Date of Grant (determined under Section 13(b) hereof), each Non-employee
Director shall receive a grant of a Fee Option at an Option Price (determined
under Section 13(c)) to purchase a number of shares of Stock (determined under
Section 13(d)) in lieu of Fees which he earned during the calendar quarter
ending immediately prior to such Date of Grant.

                  b. Fee Option Date of Grant. The Date of Grant of a Fee Option
shall be the first business day of the calendar quarter immediately following
the calendar quarter during which Fees are earned by a Non-employee Director.

                  c. Fee Option Price. The Option Price of each share of Stock
subject to a Fee Option shall be 30% of Fair Market Value on the applicable Date
of Grant.

                  d. Number of Fee Option Shares. The number of shares of Stock
subject to any Fee Option shall equal "A" divided by "B," rounded to the nearest
whole share, where:

"A" equals the dollar amount of the Non-employee Director's Fees which were
earned during the calendar quarter ending immediately prior to the Date of
Grant; and

                                       7
<PAGE>

"B" equals the excess of Fair Market Value of the Stock on the applicable Date
of Grant over the Option Price with respect to a Fee Option (determined under
Section 13(c)).

                  e. Vesting. Each Fee Option shall vest and become exercisable
immediately on the Date of Grant of such Option.

                  f. Termination of Plan Participation. Notwithstanding anything
elsewhere in the Plan to the contrary, a Non-employee Director's eligibility for
grants of Fee Options under the Plan shall cease as of the date on which he no
longer is a member of the Board. The Fee for any Non-employee Director whose
Board membership terminates at any time after such Fee is earned by such
Non-employee Director, but before the Date of Grant relating to such Fee Option,
shall be paid in cash. If a Non-employee Director's service as a member of the
Board shall be terminated for any reason other than for cause (as defined in
Section 10 hereof), the Non-employee Director (or his legal representative or
estate in the case of termination as a result of Permanent and Total Disability
or death) shall have the right, during the period ending three years after such
termination, to exercise the Options of such Non-employee Director to the extent
not previously exercised; provided, however, that such three year period may be
extended for any such Non-employee Director (but not beyond the respective terms
of the Non-employee Director's Options) upon determination of the Committee. If
a Non-employee Director shall be removed from the Board for cause, the
Non-employee Director's right to exercise any unexercised portion of his Options
shall immediately terminate and all rights thereunder shall cease.

                  14. MISCELLANEOUS PROVISIONS.

                  a. This Plan shall be governed by, and construed in accordance
with, the internal laws of Delaware.

                  b. Subject to Section 13 hereof with respect to Non-employee
Directors, no Employee or other Person shall have any claim or right to become a
Participant of this Plan. Neither this Plan nor any action taken hereunder shall
be construed as giving to any Employee or member of the Board any right to
remain employed or to continue service as a member of the Board.

                  c. The Company shall at all times during the term of this Plan
reserve and keep available an amount of Stock sufficient to satisfy the
requirements of this Plan, and shall pay all fees and expenses necessarily
incurred by the Company in connection with the exercise of Options granted
hereunder.

                  d. The Board may at any time terminate or amend this Plan in
any respect; provided that any such termination or amendment may not alter or
impair any rights or obligations under any outstanding Option without the
consent of the holder of the Option. Solely to the extent deemed necessary or
advisable by the Board, for purposes of complying with Section 162(m) of the
Code or rules of any securities exchange or for any other reason, the Board may
seek the approval of any amendment by the Company's stockholders.

                                      THE ULTIMATE SOFTWARE GROUP, INC.

                                       8<PAGE>
                                                                   EXHIBIT 10.19

                               SERVICES AGREEMENT

This Services Agreement is entered into this 10th day of February, 2003 by and
between The Ultimate Software Group, Inc. (hereafter "Ultimate") and Ceridian
Corporation (hereafter "Ceridian").

         Whereas, Ceridian has previously licensed certain products of Ultimate,
including that software product generally known as UltiPro; and

         Whereas, Ceridian desires to have Ultimate perform, and Ultimate
desires to perform certain services ("Services") relating to Ultimate's products
during the calendar year 2003, as more fully set forth in this Services
Agreement.

         Now, therefore, it is agreed as follows:

                  1.     Ultimate will perform the following for Ceridian
                         commencing on the date of this Services Agreement and
                         terminating at 11:59 p.m. on December 31, 2003:

                         A.    An employee of Ultimate will be selected by
                               Ultimate to work on a full-time basis
                               (approximately 40 hours per week) with Ceridian
                               at Ceridian's office in Atlanta, Georgia; the
                               employee will be appropriately familiar with
                               Ceridian's service bureau requirements and
                               dedicated to assisting Ceridian in the resolution
                               of issues or problems Ceridian has attendant to
                               the development, integration, troubleshooting or
                               other resolution of problems related to UltiPro
                               product functionality and Ceridian's service
                               bureau performance requirements. Ultimate will
                               bear all costs associated with its employee being
                               located in Atlanta, Georgia.

                         B.    Ultimate will host and provide suitable work
                               space and support to a Ceridian employee, to be
                               designated by Ceridian, onsite at Ultimate's
                               headquarters for the purpose of ongoing
                               coordination and understanding of general and
                               technical product requirements, integration
                               requirements, and general communication of both
                               Ultimate and Ceridian development status and
                               issue resolution. Ceridian will bear all employee
                               related costs associated with its employee's
                               presence at Ultimate's headquarters.

                         C.    Ultimate will make available to Ceridian
                               technical support relating to functionality and
                               design of Ultimate's products on a 24-hour, 7
<PAGE>

                               days per week basis, including an appropriately
                               responsive escalation and issue resolution
                               process.

                         D.    Ultimate will perform services based on
                               Ceridian's continued inclusion as a key
                               stakeholder in Ultimate's current and future
                               product functionality and performance activities
                               including:

                               (i)      The solicitation, review, and delivery
                                        of mutually agreed to functional or
                                        performance requirements from Ceridian
                                        for releases being developed for
                                        Ultimate products during the period of
                                        the Services Agreement.

                               (ii)     Assistance with the identification and
                                        timely resolution of emergent or
                                        near-term development activity required
                                        to address product functionality,
                                        performance or service bureau activity
                                        gaps affecting Ceridian's use of the
                                        UltiPro product.

                               (iii)    Consideration of Ceridian's feature or
                                        function enhancement requests and
                                        allowance of active participation by
                                        Ceridian in the prioritization of such
                                        requests for inclusion in future
                                        releases.

                               (iv)     Allowance of partner-level participation
                                        by Ceridian in the product development
                                        and release management processes, such
                                        as method and timing of requirement and
                                        specification reviews, prioritization of
                                        one-off tools/utilities development,
                                        market/customer feedback analysis and
                                        prioritization, and strategic direction
                                        planning.

                               (v)      Allowance of Ceridian's elective
                                        participation in release associated
                                        activity such as Beta releases and
                                        utility and tool evaluations.

                               (vi)     Continued professional interchange and
                                        creative discourse to further Ceridian's
                                        understanding of Ultimate's product
                                        functionality and its integration with
                                        Ceridian's products, and to advance
                                        product viability in the marketplace.

                         E.    Ultimate will perform extended performance and
                               scalability testing of Ultimate products to meet
                               Ceridian's performance and capacity planning
                               objectives inclusive of industry standard web
                               performance parameters, a 250,000 employee
                               minimum site capability, and corresponding system
                               throughput capability to support the efficient

                                       2
<PAGE>

                               processing of the workflow generated therein.
                               Ultimate will exercise commercially reasonable
                               efforts to rectify any identified performance and
                               capacity gaps.

                         F.    Ultimate will perform the Services in a diligent,
                               workmanlike manner conforming to industry quality
                               standards of persons skilled and experienced in
                               performing such services.

                  2.     In consideration for the services outlined in Section 1
                         above of this Services Agreement, Ceridian will pay
                         Ultimate the sum of Two Million Two Hundred and Fifty
                         Thousand Dollars ($2,250,000), payable in four equal
                         quarterly installments of Five Hundred Sixty-Two
                         Thousand and Five Hundred Dollars ($562,500). Ceridian
                         shall pay the first quarterly installment to Ultimate
                         within ten (10) days of the date of this Services
                         Agreement as set forth above, and the second, third,
                         and fourth quarterly installments to Ultimate no later
                         than May 1, August 1, and November 1, 2003,
                         respectively. In addition, Ceridian will reimburse
                         Ultimate for any reasonable travel or other out of
                         pocket expenses associated with performance of this
                         Services Agreement. Said amounts will be invoiced on a
                         monthly basis and payment will be due within thirty
                         (30) days of invoice date.

                  3.     The Services set forth in this Services Agreement are
                         independent of any other obligations of the parties as
                         provided for in other agreements between them, which
                         remain unchanged by this Services Agreement.

                  4.     This Services Agreement does not make either party the
                         employee, agent or legal representative of the other
                         for any purpose whatsoever. Neither party is granted
                         any right or authority to assume or to create any
                         obligation or responsibility, express or implied, on
                         behalf of or in the name of the other party. Each party
                         is acting as an independent contractor.

                  5.     This Services Agreement may not be assigned by Ceridian
                         or Ultimate except with the written consent of the
                         other party.

                  6.     This Services Agreement may not be modified, amended,
                         rescinded, canceled or waived, in whole or in part,
                         except by written amendment signed by both parties
                         hereto.

                  7.     GOVERNING LAW, LITIGATION EXPENSES AND ARBITRATION

                         (a)   This Services Agreement shall be governed by and
                               interpreted under the laws of the State of
                               Delaware, without giving effect to its conflicts

                                       3
<PAGE>

                               of laws principles. In the event of litigation or
                               arbitration arising from this Services Agreement,
                               the prevailing party shall be entitled to recover
                               its reasonable costs and attorney's fees in said
                               claim, lawsuit, arbitration or action from the
                               non-prevailing party.

                         (b)   (i) If a dispute other than a dispute with
                               respect to the ownership of intellectual property
                               (as distinguished from the use by Ceridian or one
                               or more Ceridian Customers of the Licensed
                               Software) is not resolved by the parties within
                               forty-five (45) days after the receipt of a
                               notice of dispute by either party to the other
                               party, such dispute will be submitted to
                               arbitration and finally settled by binding
                               arbitration conducted in accordance with the
                               Commercial Arbitration Rules (the "Rules") of the
                               American Arbitration Association then in effect.
                               Either party may give the other party notice, in
                               accordance with Section 13, of its submission of
                               such dispute to arbitration. Such notice shall
                               also be given in accordance with the Rules, to
                               the extent that the rules are inconsistent with
                               or supplement this notice requirement. Such
                               arbitration shall take place in Chicago,
                               Illinois, United States of America, before a
                               single arbitrator. The parties will agree upon
                               the selection of a particular arbitrator as soon
                               as reasonably practical after the notice
                               described in this Section 7(b) is given, but
                               failing such agreement within thirty (30) days of
                               such notices, the arbitrator will be selected in
                               accordance with the Rules. All issues in the
                               arbitration will be decided in accordance with
                               Delaware law and any applicable federal law.

                               The determinations of the arbitrator will be
                               final and binding upon the parties to the
                               arbitration, and judgment upon the award rendered
                               by the arbitrator may be entered in any court
                               having jurisdiction, or application may be made
                               to such court for a judicial acceptance of the
                               award and an order of enforcement, as the case
                               may be. The arbitrator shall be requested to set
                               forth the grounds for his or her decision in the
                               award.

                               All proceedings before the arbitrator shall be
                               conducted in the English language. All documents
                               and papers submitted to the arbitrator shall be
                               in the English language or accompanied by a
                               competent English language translation thereof.

                                       4
<PAGE>

                               With the exception of applications to courts of
                               competent jurisdiction for injunctive relief, the
                               parties stipulate the submission of disputes to
                               arbitration as provided in this Section 7, and
                               arbitration pursuant thereto, shall be a
                               condition precedent to any suit, action or
                               proceeding instituted in any court or before any
                               administrative tribunal with respect to such
                               dispute. The arbitration provisions hereof shall,
                               with respect to any dispute arising out of this
                               Services Agreement, survive the termination or
                               expiration of this Services Agreement.

                               Both parties agree to continue performing their
                               respective obligations under this Services
                               Agreement while any dispute is being resolved
                               unless and until such obligations are terminated
                               or expire in accordance with the provisions
                               hereof.

                               The parties shall use their best commercial
                               efforts to set the date of the arbitration with
                               sixty (60) days after selection of the arbitrator
                               but in no event shall the arbitration be set more
                               than ninety (90) days after selection of the
                               arbitrator. Discovery as permitted by the Federal
                               Rules of Civil Procedure then in effect will be
                               allowed in connection with the arbitration to the
                               extent consistent with the purpose of the
                               arbitration and as allowed by the arbitrator.

                               The decision or award of the arbitrator shall be
                               rendered within fifteen (15) days after the
                               conclusion of the presentation to and hearing by
                               the arbitrator. The decision or award of the
                               arbitrator shall be final, binding and
                               non-appealable by the parties.

                               Each party shall bear its own arbitration costs
                               and expenses and all other costs and expenses of
                               the arbitration shall be divided equally between
                               the parties; provided, however, the arbitrator
                               may modify the allocation of fees, costs and
                               expenses in the award in those cases where
                               fairness dictates.

                               Notwithstanding anything to the contrary in this
                               Section 7(b), the parties shall have the
                               authority to stay the time periods set forth in
                               this Section 7(b) upon mutual agreement.

                                       5
<PAGE>

                               (ii) Notwithstanding any other provision of this
                               Section 7(b), either party may resort to court
                               action for injunctive relief at any time if the
                               dispute resolution processes set forth in this
                               Section 7(b) would permit or cause irreparable
                               injury to such party or any third party claiming
                               against such party, due to delay arising out of
                               the dispute resolution process.

                  8.     In the event of the bankruptcy of Ultimate pursuant to
                         the Bankruptcy Act and an attendant rejection of the
                         Services Agreement or any license or assignment granted
                         hereunder pursuant to Section 365 thereof, the parties
                         intend that the provisions of the Bankruptcy Act shall
                         apply and Ceridian shall be entitled to retain
                         possession of all embodiments of intellectual property
                         delivered to it by Ultimate under this Services
                         Agreement and to the extent permitted by law, retain
                         the license rights granted thereunder, subject to any
                         Ceridian obligation to pay royalties and fees.

                  9.     If any provision of the Services Agreement is found
                         unenforceable under any of the laws or regulations
                         applicable thereto, such provision terms shall be
                         deemed stricken from this Services Agreement, but such
                         invalidity or unenforceability shall not invalidate any
                         of the other provisions of this Services Agreement.

                  10.    This Services Agreement may be executed in two or more
                         counterparts and by facsimile in the English language,
                         and each such counterpart shall be deemed an original
                         hereof.

                  11.    No failure by either party to take any action or assert
                         any right hereunder shall be deemed to be a waiver of
                         such right in the event of the continuation or
                         repetition of the circumstances giving rise to such
                         right.

                  12.    This Services Agreement shall be binding on Ceridian
                         and Ultimate and their permitted assignees and all
                         successors in interest.

                  13.    NOTICES. Notices permitted or required be given
                         hereunder shall be deemed sufficient if given by
                         registered or certified mail, postage prepaid, return
                         receipt requested, or by private courier service to the
                         respective addresses of the parties set forth in this
                         Section 13 or at such other addresses as the respective
                         parties may designate by like notice from time to time.
                         Notices so given shall be effective upon (a) receipt by
                         the party to which notice is given, or (b) on the fifth

                                       6
<PAGE>

                         (5th) day following domestic mailing or the tenth
                         (10th) day following international mailing, as may be
                         the case, whichever occurs first. The initial addresses
                         for purposes of this notice provision shall be:

                         Ceridian Corporation
                         3311 E. Old Shakopee Road
                         Minneapolis, MN  55425-1640
                         Attention:  President

                         With copy to:

                         Ceridian Corporation
                         3311 E. Old Shakopee Road
                         Minneapolis, MN  55425-1640
                         Attention:  General Counsel

                         The Ultimate Software Group, Inc.
                         2000 Ultimate Way
                         Weston, FL  33326
                         Attention:  President

                         With copy to:

                         The Ultimate Software Group, Inc.
                         2000 Ultimate Way
                         Weston, FL  33326
                         Attention:  General Counsel

                  14.    Except with the consent of the other party, neither
                         party shall publicize, advertise, announce or describe
                         to any governmental authority or other third person,
                         the terms of this Services Agreement, except as
                         required by law or as required pursuant to this
                         Services Agreement.

THE ULTIMATE SOFTWARE GROUP, INC.                  CERDIAN CORPORATION

By:     /s/ Marc D. Scherr                  By:  /s/ Todd A. Reimringer
    -------------------------                  ---------------------------------

Name:     Marc D. Scherr                    Name:      Todd A. Reimringer
      -----------------------                    -------------------------------

Title:    Vice Chairman                     Title:   Chief Operating Officer
       ----------------------                     ------------------------------
                                                     Human Resources Solutions

                                       7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}]]