Document:

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                                                                   Exhibit 10.25

                                MATRIXONE, INC.

                        COMMON STOCK PURCHASE AGREEMENT

                          DATED AS OF FEBRUARY 1, 2000
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                               TABLE OF CONTENTS

1.  PURCHASE AND SALE OF STOCK.............................  1
  1.1  SALE AND ISSUANCE OF STOCK..........................  1
  1.2  THE CLOSING.........................................  1
2.  REPRESENTATIONS AND WARRANTIES OF THE COMPANY..........  2
  2.1  ORGANIZATION AND GOOD STANDING......................  2
  2.2  AUTHORIZATION.......................................  2
  2.3  VALID ISSUANCE OF STOCK.............................  2
  2.4  LITIGATION..........................................  2
  2.5  PROPERTIES..........................................  2
  2.6  COMPLIANCE WITH OTHER DOCUMENTS.....................  2
  2.7  FINAL PROSPECTUS....................................  3
3.  REPRESENTATIONS AND WARRANTIES OF THE INVESTOR.........  3
  3.1  AUTHORIZATION.......................................  3
  3.2  INVESTIGATION.......................................  3
  3.3  ACCREDITED INVESTOR, ETC............................  3
  3.4  PURCHASE ENTIRELY FOR OWN ACCOUNT...................  3
4.  CONDITIONS TO THE INVESTOR'S OBLIGATION AT CLOSING.....  3
  4.1  REPRESENTATIONS AND WARRANTIES......................  3
  4.2  SECURITIES LAWS.....................................  4
  4.3  AUTHORIZATIONS......................................  4
  4.4  INITIAL PUBLIC OFFERING OF COMMON STOCK.............  4
5.  CONDITIONS TO THE COMPANY'S OBLIGATIONS AT CLOSING.....  4
  5.1  REPRESENTATIONS AND WARRANTIES......................  4
  5.2  SECURITIES LAWS.....................................  4
  5.3  AUTHORIZATIONS......................................  4
  5.4  PAYMENT OF PURCHASE PRICE...........................  4
  5.5  INITIAL PUBLIC OFFERING OF COMMON STOCK.............  4
6.  COVENANTS OF THE COMPANY AND THE INVESTOR..............  5
  6.1  AGREEMENT NOT TO TRANSFER...........................  5
  6.2  MARKET STAND-OFF....................................  5
  6.3  REGISTRATION OF STOCK...............................  5
  6.4  NOTICE OF INTENTION TO TRANSFER.....................  6
  6.5  PRIVATE PLACEMENT...................................  6
7.  MISCELLANEOUS..........................................  6
  7.1  GOVERNING LAW.......................................  6
  7.2  SURVIVAL; ADDITIONAL SECURITIES.....................  6
  7.3  SUCCESSOR AND ASSIGNS...............................  6
  7.4  ENTIRE AGREEMENT....................................  6
  7.5  NOTICES.............................................  6
  7.6  AMENDMENTS AND WAIVERS..............................  7
  7.7  LEGAL FEES..........................................  7
  7.8  EXPENSES............................................  7
  7.9  TITLES AND SUBTITLES................................  7
  7.10 COUNTERPARTS........................................  7
  7.11 SEVERABILITY........................................  7
  7.12 CONFIDENTIALITY.....................................  8
  7.13 USE OF INVESTOR'S NAME..............................  8

                                      (i)
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                        COMMON STOCK PURCHASE AGREEMENT

     This Common Stock Purchase Agreement dated as of February 1, 2000 (the
"Agreement"), by and between MatrixOne, Inc., a Delaware corporation (the
"Company") and GE Capital Equity Investments, Inc., a Delaware corporation (the
"Investor").

     WHEREAS, the Investor has indicated a desire to purchase 450,000 shares of
Common Stock from the Company on the Closing (as defined below) date.

     WHEREAS, the Company has indicated a desire to sell 450,000 shares of
Common Stock to the Investor on the Closing date and has agreed to register such
shares under the Securities Act of 1933, as amended (the "Securities Act") on
the terms set forth herein.

     WHEREAS, the Company and General Electric Corporation are executing
concurrently with this Agreement a Master Services Agreement dated as of the
date hereof, a Master Framework License Agreement dated as of the date hereof
and a Warrant Agreement dated as of the date hereof (the "Warrant Agreement").

     WHEREAS, the Company and the Investor have agreed that this Agreement shall
constitute the entire understanding and agreement between the parties with
regard to the subject matter hereof.

     NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

1.  PURCHASE AND SALE OF STOCK.
    ---------------------------

     1.1 SALE AND ISSUANCE OF STOCK. Subject to the terms and conditions of this
         --------------------------
Agreement, the Company agrees to sell to the Investor and the Investor agrees to
purchase from the Company 450,000 shares (the "Stock") of the Company's Common
Stock, $.01 par value per share (the "Common Stock"), having the rights,
preferences, privileges and restrictions set forth in the Second Amended and
Restated Certificate of Incorporation of the Company, substantially in the form
filed as an exhibit to the Company's registration statement on Form S-1, File
No. 333-92731, as amended (such registration statement, as amended at the time
it becomes effective and including the information deemed to be a part of the
registration statement at the time of effectiveness, being hereinafter referred
to as the "Registration Statement"), to be filed with the Delaware Secretary of
State as of the Closing (as defined below) (the "Restated Certificate"). The
Investor acknowledges and agrees that during the period subsequent to the date
hereof and prior to the Closing date, the Company may effect a stock split and
that the 450,000 shares purchased by Investor on the Closing date shall be
purchased after such stock split and shall not be adjusted to reflect such stock
split.

     1.2 THE CLOSING. The purchase and sale of the Stock shall be held at the
         -----------
Company's offices (or such other location that the Company determines, provided
that the Company notifies the Investor) concurrently with the closing of the
Company's initial public offering (the "Offering") or, if later, upon
satisfaction or waiver of each of the conditions set forth in Sections 4 and 5
(the "Closing"). At the Closing, the Company will deliver the Stock to the
Investor against payment of the purchase price therefor by check payable to the
order of the
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Company or by wire transfer. The per share purchase price for the Stock shall be
equal to the per share price paid by the public for the Common Stock in the
Offering, less any underwriter discounts and commissions.

2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby represents
   ---------------------------------------------
and warrants to the Investor that:

     2.1 ORGANIZATION AND GOOD STANDING. The Company is a corporation duly
         ------------------------------
organized, validly existing and in good standing under the laws of the State of
Delaware and has full corporate power and authority to conduct its business as
presently conducted.

     2.2 AUTHORIZATION. All corporate action on the part of the Company, its
         -------------
officers, directors and stockholders necessary for the authorization, execution
and delivery of this Agreement, the performance of all obligations of the
Company hereunder, and the authorization, issuance and delivery of the Stock has
been taken or will be taken prior to the Closing, subject to laws of general
application relating to bankruptcy, insolvency and the relief of debtors and by
general principles of equity.

     2.3 VALID ISSUANCE OF STOCK. The Stock, when issued, sold and delivered in
         -----------------------
accordance with the terms hereof for the consideration expressed, will be duly
and validly issued, fully paid and nonassessable and, based in part upon the
representations of the Investor in this Agreement, will be issued in compliance
with all applicable federal and state securities laws. The authorized capital of
the Company is as set forth in the Registration Statement.

     2.4 LITIGATION. Except as set forth in the Company's registration statement
         ----------
prepared in connection with the Offering, as filed with the Securities and
Exchange Commission ("SEC") and amended from time to time (the "Registration
Statement"), there are no actions, proceedings or investigations pending or, to
the best of Company's knowledge, any basis therefor or threat thereof, against
or affecting the Company, that, either in any case or in the aggregate, would
result in any material adverse change in the business, financial condition, or
results of operations of the Company.

     2.5 PROPERTIES. To the best of the Company's knowledge (but without having
         ----------
conducted any special investigation), the Company has (i) good and marketable
title to its properties and assets and has good title to all its leasehold
interests, and (ii) sufficient title, license and/or ownership of all patents,
trademarks, service marks, trade names, copyrights, trade secrets, information,
proprietary rights and processes necessary for its business as now conducted on
the date hereof.

     2.6 COMPLIANCE WITH OTHER DOCUMENTS. The execution and delivery of this
         -------------------------------
Agreement, consummation of the transactions contemplated hereby, and compliance
with the terms and provisions hereof will not conflict with or result in a
breach of the terms and conditions of, or constitute a default under the
Restated Certificate or Restated Bylaws of the Company or of any contract or
agreement to which the Company is now a party, except where such conflict,
breach or default of any such contract or agreement, either individually or in
the aggregate, would

                                      (2)
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not have a material adverse effect on the Company's business, financial
condition or results of operations.

     2.7 FINAL PROSPECTUS. The Company's Prospectus for the Offering as filed
         ----------------
with the SEC pursuant to Rule 424 shall not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading.

3. REPRESENTATIONS AND WARRANTIES OF THE INVESTOR. The Investor hereby
   ----------------------------------------------
represents and warrants that:

     3.1 AUTHORIZATION. This Agreement constitutes the valid and legally binding
         -------------
obligation of the Investor, enforceable in accordance with its terms, subject to
laws of general application relating to bankruptcy, insolvency and the relief of
debtors and by general principles of equity.

     3.2 INVESTIGATION. The Investor acknowledges that it has carefully reviewed
         -------------
the Registration Statement and the representations concerning the Company
contained in this Agreement and has had an opportunity to discuss the business,
affairs and current prospects of the Company with the Company's officers and
members of its management.

     3.3 ACCREDITED INVESTOR, ETC. The Investor is an "accredited investor" as
         ------------------------
such term is defined in Regulation D adopted by the SEC. The Investor is an
investor in securities of companies in the development stage, in the Company's
industry and acknowledges that it is able to fend for itself, can bear the
economic risk of its investment and has such knowledge and experience in
financial or business matters that it is capable of evaluating the merits and
risks of the investment in the Stock.

     3.4 PURCHASE ENTIRELY FOR OWN ACCOUNT. This Agreement is made with the
         ---------------------------------
Investor in reliance upon the Investor's representation to the Company, which by
the Investor's execution of this Agreement the Investor hereby confirms, that
the Stock will be acquired for investment for the Investor's own account, not as
a nominee or agent, and not with a view to the resale or distribution of any
part thereof, and that the Investor has no present intention of selling,
granting any participation in, or otherwise distributing the same, other than in
compliance with the federal securities laws and subject to the provisions of
this Agreement.

4. CONDITIONS TO THE INVESTOR'S OBLIGATION AT CLOSING. The obligation of the
   --------------------------------------------------
Investor to purchase the Stock at the Closing is subject to the fulfillment to
the Investor's satisfaction on or prior to the Closing of the following
conditions:

     4.1 REPRESENTATIONS AND WARRANTIES. The representations and warranties made
         ------------------------------
by the Company in Section 2 hereof shall be true and correct when made, and
shall be true and correct as of the Closing with the same force and effect as if
they had been made on and as of such date, subject to changes contemplated by
this Agreement.

                                      (3)
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     4.2 SECURITIES LAWS. The offer and sale of the Stock to the Investor
         ---------------
pursuant to this Agreement shall be exempt from the registration requirements of
the Securities Act and qualification requirements of all applicable state
securities laws.

     4.3 AUTHORIZATIONS. All authorizations, approvals or permits, if any, of
         --------------
any governmental authority or regulatory body that are required in connection
with the lawful issuance and sale of the Stock pursuant to this Agreement shall
have been duly obtained and shall be effective on and as of the Closing.

     4.4 INITIAL PUBLIC OFFERING OF COMMON STOCK. The initial public offering of
         ---------------------------------------
the Common Stock shall have occurred.

5. CONDITIONS TO THE COMPANY'S OBLIGATIONS AT CLOSING. The obligation of the
   --------------------------------------------------
Company to sell the Stock at the Closing is subject to the fulfillment to the
Company's satisfaction on or prior to the Closing of the following conditions:

     5.1 REPRESENTATIONS AND WARRANTIES. The representations and warranties of
         ------------------------------
the Investor contained in Section 3 hereof shall be true as of the Closing with
the same force and effect as if they had been made on and as of such date,
subject to changes contemplated by this Agreement.

     5.2 SECURITIES LAWS. The offer and sale of the Stock to the Investor
         ---------------
pursuant to this Agreement shall be exempt from the registration requirements of
the Securities Act qualification requirements of all applicable state securities
laws.

     5.3 AUTHORIZATIONS. All authorizations, approvals or permits, if any, of
         --------------
any governmental authority or regulatory body that are required in connection
with the lawful issuance and sale of the Stock pursuant to this Agreement shall
have been duly obtained and shall be effective on and as of the Closing.

     5.4 PAYMENT OF PURCHASE PRICE. The Investor shall have delivered to the
         -------------------------
Company the purchase price for the Stock as set forth in Section 1.2 hereof.

     5.5 INITIAL PUBLIC OFFERING OF COMMON STOCK. The initial public offering of
         ---------------------------------------
the Common Stock shall have occurred.

                                      (4)
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6. COVENANTS OF THE COMPANY AND THE INVESTOR.
   -----------------------------------------

     6.1 AGREEMENT NOT TO TRANSFER.
         -------------------------

          (a) Prior to the date 180 days after the date of the final prospectus
relating to the Offering, the Investor shall not, and shall not permit any other
person, to the extent allowable by law, who holds of record any of the
undersigned's shares of the Stock, directly or indirectly, Transfer or offer to
Transfer any shares of the Stock (the "Transfer Restrictions") other than to
affiliates who agree to be bound by the terms of this Agreement, unless the
Company consents to such Transfer and the transferee agrees to be bound by this
Agreement.

          (b) In order to enforce the Transfer Restrictions, the Company may
impose stop-transfer instructions with respect to the Stock until the end of the
restricted period.

          (c) As used in this Agreement, the term "Transfer" shall mean any
sale, offer to sell, contract to sell, transfer, assignment, hypothecation,
encumbrance, grant any option or warrant for the sale or purchase of or other
disposition, whether voluntary or involuntary, of shares of the Stock, or
securities of the Company substantially similar to the Stock, or any security
convertible or exchangeable into or exercisable for Common Stock.  In the case
of hypothecation, the Transfer shall be deemed to occur both at the time of the
initial pledge and at any pledgee's sale or a sale by any secured creditor or a
retention by the secured creditor of the pledged shares of the Stock in complete
or partial satisfaction of the indebtedness for which the shares of the Stock
are security.

     6.2 MARKET STAND-OFF. In addition to the Transfer Restrictions (which shall
         ----------------
in no way be limited by the following), in connection with the first
underwritten public offering by the Company of its equity securities pursuant to
an effective registration statement filed under the Securities Act following the
Offering, the Investor shall not Transfer or offer to Transfer any shares of the
Stock without the prior written consent of the Company and its underwriters.
Such restriction (the "Market Stand-Off") shall be in effect for such period of
                       ------ ---------
time from and after the effective date of the final prospectus for the offering
as may be requested by the Company or such underwriters; provided, however, that
                                                         --------  -------
(i) such Market Stand-Off shall not exceed ninety (90) days, (ii) the Investor
shall be subject to the Market Stand-Off only if the officers, directors and
other stockholders of the Company are also subject to similar restrictions and
(iii) the Investor shall only be subject to the Market-Stand Off if the Company
registers at least fifty percent (50%) of the Registrable Securities (as
hereinafter defined) in the offering. In order to enforce the Market Stand-Off,
the Company may impose stop-transfer instructions with respect to the Stock
until the end of the applicable stand-off period.

     6.3 REGISTRATION OF STOCK. The Company agrees that, upon request by the
         ---------------------
Investor, it will effect registration of the Stock in accordance with the
provisions contained in Exhibit A attached hereto. The Investor understands and
                        ------- -
agrees that (i) the Stock will be characterized as "restricted securities" under
the federal securities laws inasmuch as it is being acquired from the Company in
a transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under
the Securities Act only in certain limited circumstances, and (ii) each
certificate representing the

                                      (5)
<PAGE>

Stock and any other securities issued in respect of the Stock upon any stock
split, stock dividend, recapitalization, merger or similar event (unless no
longer required in the opinion of counsel for the Company) shall be stamped or
otherwise imprinted with appropriate legends mandated by federal and state
securities laws.

     6.4 NOTICE OF INTENTION TO TRANSFER. In the event the Investor plans to
         -------------------------------
Transfer shares of the Stock in one or more transactions, the Investor shall
inform the Company of such intention to Transfer such shares fifteen (15) days
prior to such Transfer. Investor shall agree that any transfer, sale or other
disposition of Stock shall be through an orderly disposition.

     6.5 PRIVATE PLACEMENT. If the initial public offering of the Common Stock
         -----------------
of the Company does not occur within ninety (90) days from the date hereof, the
Company and Investor hereby agree to negotiate in good faith a private placement
of Common Stock of the Company.

7.  MISCELLANEOUS.
    -------------

     7.1 GOVERNING LAW. This Agreement shall be governed in all respects by the
         -------------
laws of the State of Delaware, without regard to the conflict of law provisions
thereof.

     7.2 SURVIVAL; ADDITIONAL SECURITIES. The representations and warranties set
         -------------------------------
forth in Sections 2 and 3 shall survive the Closing for a period of eighteen
(18) months and shall remain in full force and effect during such period
regardless of any investigation made by the Investor, and the covenants and
agreements set forth in Section 6 shall survive in accordance with their terms.
Any new, substituted or additional securities which are by reason of any stock
split, stock dividend, recapitalization or reorganization distributed with
respect to the Stock ("Stock Distributions") shall be immediately subject to (i)
                      ---------------------
the representations and warranties set forth in Sections 2 and 3 and (ii) the
covenants and agreements set forth in Section 6, both to the same extent the
Stock is at such time covered by such provisions.

     7.3 SUCCESSOR AND ASSIGNS. Except as otherwise expressly provided herein,
         ---------------------
the provisions hereof shall inure to the benefit of, and be binding upon, the
respective successors and assigns of the parties hereto. Nothing in this
Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement. Notwithstanding anything to the
contrary contained herein, the covenants set forth in Section 6 shall not be
binding upon any entity (other than an affiliate of the Investor) which acquires
any shares of the Stock or a Stock Distribution in a transaction permitted
hereunder.

     7.4 ENTIRE AGREEMENT. This Agreement constitutes the entire understanding
         ----------------
and agreement between the parties with regard to the subject matter hereof.

     7.5 NOTICES. Except as otherwise provided, all notices and other
         -------
communications required or permitted hereunder shall be in writing, shall be
effective when given, and shall in any event be deemed to be given upon receipt
or, if earlier, (i) five (5) days after deposit with the U.s. postal service or
other applicable postal service, if delivered by first class

                                      (6)
<PAGE>

mail, postage prepaid, (ii) upon delivery, if delivered by hand, (iii) one (1)
business day after the day of deposit with Federal Express or similar overnight
courier, freight prepaid, if delivered by overnight courier or (iv) one (1)
business day after the day of facsimile transmission, if delivered by facsimile
transmission with copy by first class mail, postage prepaid, and shall be
addressed, (a) if to the Investor, at the Investor's address set forth below its
signature, or at such other address as the Investor shall have furnished to the
Company in writing, or (b) if to the Company, at its address as set forth below
its signature, or at such other address as the Company shall have furnished to
the Investor in writing.

     7.6 AMENDMENTS AND WAIVERS. Any term of this Agreement may be amended and
         ----------------------
the observance of any term of the Agreement may be waived (either generally or
in a particular instance and either retroactively or prospectively) only with
the written consent of the Company and the Investor.

     7.7 LEGAL FEES. In the event of any action at law, suit in equity or
         ----------
arbitration proceeding in relation to this Agreement or the Stock or any Stock
Distribution, the prevailing party shall be paid by the other party a reasonable
sum for the attorneys' fees and expenses incurred by such prevailing party.

     7.8 EXPENSES. Irrespective of whether the Closing is effected, the Company
         --------
and the Investor shall each pay their own costs and expenses incurred with
respect to the negotiation, execution, delivery and performance of this
Agreement.

     7.9 TITLES AND SUBTITLES. The titles of the paragraphs and subparagraphs of
         --------------------
this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement.

     7.10 COUNTERPARTS. This Agreement may be executed in counterparts, each of
          ------------
which shall be an original, but all of which together shall constitute one
instrument.

     7.11 SEVERABILITY. If one or more provisions of this Agreement are held to
          ------------
be unenforceable under applicable law, such provision shall be excluded from
this Agreement and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its
terms.

     7.12 CONFIDENTIALITY. The parties hereto agree that, except with the prior
          ---------------
written permission of the other party, it shall at all times keep confidential
and not divulge, furnish, or make accessible to anyone any confidential
information, knowledge, or data concerning or relating to the business or
financial affairs of such other party to which said party has been or shall
become privy by reason of this Agreement, discussions or negotiations relating
to this Agreement, or the performance of its obligations hereunder, except as
otherwise required by law or the rules of any securities exchange or other
regulatory authority.

     7.13 USE OF INVESTOR'S NAME. The Company shall not, unless prior written
          ----------------------
consent is given by the Investor, create or disseminate any publicity using
either the Investor's name or any trade name or mark thereof, except as, and
only to the extent, required by law or

                                      (7)
<PAGE>

legal process, including, without limitation, federal and state securities laws
and filings with the SEC. Notwithstanding the foregoing, the Company shall be
allowed to use the Investor's name without Investor's consent for the following
purposes: (a) its standard customer lists, including customer lists on its web
site and in a filing with the SEC, (b) sales presentations and sales materials,
including on a roadshow for a public offering, and (c) investor relations
materials such as analyst presentations.

                           [Signature Page to Follow]

                                      (8)
<PAGE>

  IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year hereinabove first written.

                              MATRIXONE, INC.

                              /s/ Maurice L. Castonguay
                              --------------------------------------
                              By: Maurice L. Castonguay
                              Title: CFO

                              GE CAPITAL EQUITY INVESTMENTS, INC:

                              /s/ Keith E. Miller
                              --------------------------------------
                              By: Keith E. Miller
                              Title: Division Operations Manager

                                      (9)
<PAGE>

                                   EXHIBIT A
                                   ---------

1. REGISTRATION RIGHTS. The Company covenants and agrees as follows:
   -------------------

     1.1 DEFINITIONS. For purposes of this Exhibit A, capitalized terms used
         -----------                       ------- -
herein and not otherwise defined shall have the meanings ascribed to them in the
Common Stock Purchase Agreement between the Company and the Investor to which
this Exhibit A is attached. In addition, the following terms used herein shall
     ------- -
have, the following meanings;

          (a) The term "Form S-3" means such form under the Act as in effect on
the date hereof or any registration form under the Act subsequently adopted by
the SEC which permits inclusion or incorporation of substantial information by
reference to other documents filed by the Company with the SEC.

          (b) The term "1934 Act" means the Securities Exchange Act of
1934, as amended.

          (c) The term "register", "registered," and "registration" refer to a
registration effected by preparing and filing a registration statement or
similar document in compliance with the Act, and the declaration or ordering of
effectiveness of such registration statement or document.

          (d) The term "Registrable Securities" means the Stock and any shares
of Common Stock issuable upon exercise of the warrants issued pursuant to the
Warrant Agreement.

     1.2  INCIDENTAL REGISTRATION.
          -----------------------

          (a) If the Company proposes at any time to register any of its
securities under the Securities Act (except registrations solely for
registration of securities in connection with an employee benefit plan or
dividend reinvestment plan or a merger, reorganization, or consolidation or any
other registration which does not permit secondary sales), whether or not for
sale for its own account, it will each such time give prompt written notice to
all registered holders of Registrable Securities of its intention to do so and
of such holders' rights under this Section 1.2.  Upon the written request of any
such holder (a "Requesting Holder") made as promptly as practicable and in any
event within 15 days after the receipt of any such notice (10 days if the
Company states in such written notice or gives telephonic notice to all
registered holders of Registrable Securities, with written confirmation to
follow promptly thereafter, that (i) such registration will be on Form S-3 and
(ii) such shorter period of time is required because of a planned filing date)
(which request shall specify the Registrable Securities intended to be disposed
of by such Requesting Holder), the Company will use commercially reasonable
efforts to effect the registration under the Securities Act of all Registrable
Securities which the Company has been so requested to register by the Requesting
Holders thereof; provided, however, that if, at any time after giving written
                 --------  -------
notice of its intention to register any securities and prior to the effective
date of the registration statement filed in connection with such registration,
the Company shall
<PAGE>

determine for any reason not to register or to delay registration of such
securities, the Company may, at its election, give written notice of such
determination to each Requesting Holder of Registrable Securities and (i) in the
case of a determination not to register any securities, shall be relieved of its
obligation to register any Registrable Securities in connection with such
registration (but not from any obligation of the Company to pay the Registration
Expenses in connection therewith) and (ii) in the case of a determination to
delay registering any securities, shall be permitted to delay registering any
Registrable Securities for the same period as the delay in registering such
other securities.

          (b) If the managing underwriter of any underwritten offering shall
inform the Company (or, in the case of a secondary offering, the selling
stockholders initiating such offering) of its belief that the number or type of
Registrable Securities requested to be included in such registration would
adversely affect such offering, then the Company will include in such
registration, to the extent of the number and type which the Company is (or the
selling stockholders initiating such offering are) so advised can be sold in (or
during the time of) such offering, first, all securities proposed by the Company
(or, in the case of a secondary offering, the selling stockholders initiating
such offering) to be sold for its (or their) own account, and second, such
Registrable Securities and any other securities of the Company requested to be
included in such registration, pro rata among all such holders on the basis of
the respective amounts of Registrable Securities and other securities which they
held at the time the Company gives notice of the registration.

          (c) If the registration of which the Company gives notice is for a
registered public offering involving an underwriting, the right of any
Requesting Holder to registration pursuant to this Section 1.2 shall be
conditioned upon such Requesting Holder participating in such underwriting, the
prompt provision of such information as the Company may reasonably request at
any time to enable the Company to comply with any applicable laws or regulations
or to facilitate the preparation of the registration statement, the entering
into an underwriting agreement in customary form with the underwriter(s)
selected for such underwriting by the Company (together with the Company and the
other selling stockholders, if any, distributing their securities through such
underwriting), and the inclusion of such Requesting Holder's Registrable
Securities in the underwriting to the extent provided herein.

     1.3 OBLIGATIONS OF THE COMPANY. Whenever required under Section 1.2 to
         --------------------------
effect the registration of Registrable Securities, the Company shall, as
expeditiously as reasonably possible:

          (a) Prepare and file with the SEC a registration statement with
respect to such Registrable Securities and use its best efforts to cause such
registration statement to become effective as soon as reasonably practicable
after the mailing of the request for such registration but in no event later
than ninety (90) days after such mailing, subject to the other provisions of
this Exhibit A.  The Company shall prepare and file with the SEC such amendments
     ------- -
and supplements as may be necessary to keep such registration statement
effective for a period of 90 days or until the Requesting Holders have completed
the distribution described in the registration statement relating thereto,
whichever occurs first.

                                      (2)
<PAGE>

          (b) Prepare and file with the SEC such amendments and supplements to
such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Act with respect to the disposition of all securities covered by such
registration statement.

          (c) Furnish to the Investor such numbers of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the
Act, and such other documents as the Investor may reasonably request in order to
facilitate the disposition of the Registrable Securities.

          (d) Use its best efforts to register and quality the securities
covered by such registration statement under such other securities or Blue Sky
laws of such jurisdictions as shall be reasonably requested by the Investor;
provided that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions.

          (e) Notify the Investor covered by such registration statement at any
time when a prospectus relating thereto is required to be delivered under the
Act of the happening of any event as a result of which the prospectus included
in such registration statement, as then in effect, includes an untrue statement
of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light
of the circumstances then existing.

          (f) Cause all such Registrable Securities registered pursuant
hereunder to be listed on each securities exchange on which similar securities
issued by the Company are then listed.

          (g) Provide a transfer agent and registrar for all of the Registrable
Securities registered pursuant hereunder and a CUSIP number for all such
Registrable Securities, in each case not later than the effective date of such
registration.

     1.4 INVESTOR OBLIGATION TO FURNISH INFORMATION. It shall be a condition
         ------------------------------------------
precedent to the obligations of the Company to take any action pursuant hereto
with respect to the Registrable Securities that the Investor shall furnish to
the Company such information regarding itself, the Registrable Securities, and
the intended method of disposition of such securities as shall be required to
effect the registration of such Registrable Securities.

     1.5 EXPENSES OF REGISTRATION. All expenses incurred in connection with
         ------------------------
registrations, filings or qualifications pursuant hereto, including (without
limitation) all registration, filing and qualification fees, printers' and
accounting fees, fees and disbursements of counsel for the Company (including
fees and disbursements of counsel for the Company in its capacity as counsel to
the Investor hereunder but excluding the fees and disbursements of any other
counsel for the Investor and excluding any underwriting discounts and selling
commissions applicable to the sale of the Registrable Securities) (the
"Registration Expenses") shall be borne by the Company.

                                      (3)
<PAGE>

     1.6 INDEMNIFICATION. In the event any Registrable Securities are included
         ---------------
in a registration statement under Section 1.2:

          (a) To the extent permitted by law, the Company will indemnify and
hold harmless the Investor, any underwriter (as defined in the Act) for the
Investor and each person, if any, who controls the investor or underwriter
within the meaning of the Act or the 1934 Act, against any losses, claims,
damages, or liabilities (joint or several) to which they may become subject
under the Act, the 1934 Act or other federal or state law, insofar as such
losses, claims, damages, or liabilities (or actions in respect thereof) arise
out of or are based upon any of the following statements, omissions or
violations (collectively a "Violation"): (i) any untrue statement or alleged
                            ---------
untrue statement of a material fact contained in such registration statement,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading, or (iii) any violation or alleged
violation by the Company of the Act, the 1934 Act, any state securities law or
any rule or regulation promulgated under the Act, the 1934 Act or any state
securities law; and the Company will pay to the Investor, or such underwriter or
controlling person, as incurred, any legal or other expenses reasonably incurred
by them in connection with investigating or defending any such loss, claim,
damage, liability, or action; provided, however, that the indemnity agreement
contained in this subsection (a) shall not apply to amounts paid in settlement
of any such loss, claim, damage, liability, or action if such settlement is
effected without the consent of the Company (which consent shall not be
unreasonably withheld), nor shall the Company be liable in any such case for any
such loss, claim, damage, liability, or action to the extent that it arises out
of or is based upon a Violation which occurs in reliance upon and in conformity
with written information furnished expressly for use in connection with such
registration by any such Investor, underwriter or controlling person.

          (b) To the extent permitted by law, the Investor will indemnify and
hold harmless the Company, each of its directors, each of its officers who has
signed the registration statement, each person, if any, who controls the Company
within the meaning of the Act, any underwriter, and any controlling person of
any such underwriter, against any losses, claims, damages, or liabilities (joint
or several) to which any of the foregoing persons may become subject, under the
Act, the 1934 Act or other federal or state law, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereto) arise out of or are
based upon any Violation, in each case to the extent (and only to the extent)
that such Violation occurs in reliance upon and in conformity with written
information furnished by such Investor expressly for use in connection with such
registration, and each such Investor will pay, as incurred, any legal or other
expenses reasonably incurred by any person intended to be indemnified pursuant
to this subsection (b), in connection with investigating or defending any such
loss, claim, damage, liability, or action; provided, however, that the indemnity
agreement contained in this subsection (b) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Investor, which consent shall
not be unreasonably withheld; provided, that, in no event shall any indemnity
under this subsection (b) exceed the gross proceeds from the offering received
by the Investor.

                                      (4)
<PAGE>

          (c) Promptly after receipt by an indemnified party under this Section
1.6 of notice of the commencement of any action (including any governmental
action), such indemnified party will, if a claim in respect thereof is to be
made against any indemnifying party under this Section 1.6, deliver to the
indemnifying party a written notice of the commencement thereof and the
indemnifying party have the right to participate in, and, to the extent the
indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party
(together with all other indemnified parties which may be represented without
conflict by one counsel) shall have the right to retain one separate counsel,
with the fees and expenses to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such
counsel in such proceeding.  The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action, if prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
1.6, but the omission so to deliver written notice to the indemnifying party
will not relieve it of any liability that it may have to any indemnified party
otherwise than under this Section 1.6.

          (d) If the indemnification provided for in this Section 1.6 is held by
a court of competent jurisdiction to be unavailable to an indemnified party with
respect to any loss, liability, claim, damage, or expense referred to therein,
then the Indemnification party, in lieu of indemnifying such indemnified party
hereunder, shall contribute to the amount paid or payable by such indemnified
party as a result of such loss, liability, claim, damage, or expense in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party on the one hand and of the indemnified party on the other in connection
with the statement or omissions that resulted in such loss, liability, claim,
damage, or expense as well as any other relevant equitable considerations.  The
relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the emission to state a material fact
relates to information supplied by the indemnifying party or by the indemnified
party and the parties' relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission.

          (e) Notwithstanding the foregoing, to the extent that the provisions
on indemnification and contribution contained in an underwriting agreement
entered into in connection with the underwritten public offering are in conflict
with the foregoing provisions, the provisions in the underwriting agreement
shall control.

          (f) The obligations of the Company and the Investor under this Section
1.6 shall survive the completion of any offering of the Registrable Securities
in a registration statement pursuant hereto, and otherwise.

     1.7 TERMINATION. The Company's obligation to register the Registrable
         -----------
Securities pursuant to this agreement shall terminate on the earlier of (i) the
second anniversary of the Closing and (ii) the date on which all shares of the
Registrable Securities held by the Investor may immediately be sold under Rule
144 during any 90-day period.

                                      (5)
<PAGE>

     1.8 TEMPORARY CESSATION OF OFFERS AND SALES BY INVESTOR. The Investor
         ---------------------------------------------------
acknowledges that there may occasionally be times when the Company may be
required to suspend the use of the prospectus forming part of the Registration
Statement until such time as an amendment to the Registration Statement has been
filed by the Company and declared effective by the SEC, until the prospectus is
supplemented or amended to comply with the Securities Act, or until such time as
the Company has filed an appropriate report with the SEC pursuant to the
Exchange Act. The Company agrees to file any necessary amendments, supplements
and reports as soon as practicable under the circumstances. The Investor hereby
covenants that it will not sell any securities pursuant to said prospectus
during a period of not more than 60 days commencing at the time at which the
Company gives the Investor notice of the suspension of the use of said
prospectus and ending at the time the Company gives the Investor notice that the
Investor may thereafter effect sales pursuant to said prospectus, as the same
may have been supplemented or amended provided the Company may not suspend the
use of such prospectus until at least 90 days had elapsed since the previous
suspension.

                                      (6)<PAGE>

                                                                 Exhibit 10.26
--------------------------------------------------------------------------------

                                    WARRANT

                          To Purchase Common Stock of

                                MATRIXONE, INC.
                                ===============

                               Warrant No. CS-1

                    No. of Shares of Common Stock:  200,000

--------------------------------------------------------------------------------
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                              PAGE
<C>       <S>                                                                  <C>
    I.    DEFINITIONS........................................................   1
    II.   EXERCISE OF WARRANT................................................   4
          2.1  Exercise Period...............................................   4
          2.2  Exercise Notice; Delivery of Certificates.....................   4
          2.3  Payment of Warrant Price......................................   5
          2.4  Payment of Taxes..............................................   5
          2.5  Fractional Shares.............................................   5
    III.  TRANSFER, DIVISION AND COMBINATION.................................   5
          3.1  Transfer......................................................   5
          3.2  Division and Combination......................................   6
          3.3  Expenses......................................................   6
          3.4  Maintenance of Books..........................................   6
    IV.   ADJUSTMENTS........................................................   6
          4.1  Stock Dividends, Subdivisions and Combinations................   6
          4.2  Other Provisions Applicable to Adjustment under this Section..   7
          4.3  Organic Change................................................   8
    V.    NOTICES TO WARRANT HOLDERS.........................................   8
          5.1  Notice of Adjustments.........................................   8
          5.2  Notice of Corporate Action....................................   9
    VI.   NO IMPAIRMENT......................................................   9
    VII.  RESERVATION AND AUTHORIZATION OF COMMON STOCK......................  10
    VIII. TAKING OF RECORD; STOCK AND WARRANT TRANSFER BOOKS.................  10
    IX.   RESTRICTIONS ON TRANSFERABILITY....................................  10
          9.1  Restrictive Legend............................................  11
          9.2  Restrictions on Transfer......................................  11
          9.3  Notice of Proposed Transfers..................................  11
          9.4  Termination of Restrictions...................................  12
          9.5  Agreement Not to Tansfer......................................  13
          9.6  Market Stand-Off..............................................  13

</TABLE>

                                       i
<PAGE>

<TABLE>
<CAPTION>
                                                                              PAGE
<C>     <S>                                                                  <C>
  X.     SUPPLYING INFORMATION...............................................  13
  XI.    LOSS OR MUTILATION..................................................  13
  XII.   LIMITATION OF LIABILITY; RIGHTS AS STOCKHOLDER......................  14
         12.1  Liability.....................................................  14
         12.2  Rights........................................................  14
  XIII.  REPRESENTATIONS AND WARRANTIES OF COMPANY...........................  14
         13.1  Organization and Good Standing................................  14
         13.2  Authorization.................................................  14
         13.3  Valid Issuance of Warrant Stock...............................  14
         13.4  Compliance with Other Documents...............................  14
  XIV.   REPRESENTATIONS AND WARRANTIES OF HOLDER............................  15
         14.1  Investigation.................................................  15
         14.2  Accredited Investor, Etc......................................  15
         14.3  Purchase Entirely for Own Account.............................  15
  XV.    MISCELLANEOUS.......................................................  15
         15.1  Nonwaiver and Expenses........................................  15
         15.2  Notices.......................................................  15
         15.3  Successors and Assigns........................................  16
         15.4  Amendment; Waiver.............................................  16
         15.5  Severability..................................................  16
         15.6  Section and Other Headings....................................  16
         15.7  Governing Law.................................................  16
         15.8  Covenant Regarding Consent....................................  17
         15.9  Remedies......................................................  17
         15.10 Registration Rights...........................................  17

</TABLE>

                                       ii
<PAGE>

THIS WARRANT AND THE SHARES OF COMMON STOCK UNDERLYING THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE
SECURITIES LAWS AND MAY NOT BE TRANSFERRED, OFFERED OR SOLD EXCEPT IN COMPLIANCE
THEREWITH AND THE PROVISIONS OF THIS WARRANT.

No. of Shares of Common Stock: 200,000         Warrant No.  CS-1

                                    WARRANT

                          To Purchase Common Stock of

                                MATRIXONE, INC.

          THIS IS TO CERTIFY THAT GE Capital Equity Investments, Inc., or its
permitted registered assigns, in exchange for consideration the receipt and
sufficiency of which is hereby acknowledged, is entitled, at any time during the
Exercise Period (as hereinafter defined), to purchase from MatrixOne, Inc., a
Delaware corporation ("Company"), 200,000 shares of Common Stock (subject to
                       -------
adjustment as provided herein), in whole or in part, at the Purchase Price (as
hereinafter defined)  per share (subject to adjustment as provided herein) all
on the terms and conditions and pursuant to the provisions hereinafter set
forth.  The parties hereto agree that for all income tax purposes the fair
market value of this Warrant as of the date hereof is $930,000, which fair
market value will be adjusted on the closing of the Offering (as hereinafter
defined).

I.   DEFINITIONS
     -----------

          1. The following terms have the meanings set forth below:

          "Board" means the Board of Directors of Company.
           -----

          "Business Day" means any day that is not a Saturday, a Sunday or a day
           ------------
on which commercial banks are required or permitted by law to be closed in the
City of Boston.

          "Common Stock" means (except where the context otherwise indicates)
           ------------
the Common Stock, par value $.01 per share, of Company.

          "Current Market Price" means, in respect of a share of Common Stock on
           --------------------
any date, either (a) if there shall then be a public market for the Common
Stock, the average of the daily market prices (determined as provided below) for
20 consecutive trading days commencing immediately before such date, or (b) if
there shall not then be a public market for the Common Stock, the fair market
value (determined as provided below) of the Common Stock as at such date.  For
purposes of clause (a), the "daily market price" for any day shall be (i) if the
shares of such class of Common Stock then are listed and traded on the New York
Stock Exchange, Inc. ("NYSE"), the closing price
<PAGE>

on such day as reported on the NYSE Composite Transactions Tape, (ii) if the
shares of such class of Common Stock then are not listed and traded on the NYSE,
the last sale price on such day on the principal stock exchange or the National
Market of the NASD Automated Quotation System on which the Common Stock is then
listed or admitted to trading ("NASDAQ"), (iii) if the Common Stock is not then
listed or admitted to trading on any stock exchange or the NASDAQ, the average
of the last reported closing bid and ask prices on such day in the over-the-
counter market as furnished by the NASDAQ or the National Quotation Bureau,
Inc., (iv) if neither such corporation at the time is engaged in the business of
reporting such prices for the Common Stock, as furnished by any similar firm
then engaged in such business, or (v) if there is no such firm, as furnished by
any member of the NASD selected by the Required Holders and Company or, if they
cannot agree upon such selection, as selected by two such members of the NASD,
one of which shall be selected by the Required Holders and one of which shall be
selected by Company. For purposes of clause (b), "fair market value" shall be
determined by the Board in good faith.

          "Current Warrant Price" means, in respect of a share of Common Stock
           ---------------------
on any date herein specified, the price at which a share of Common Stock may be
purchased pursuant to this Warrant on such date.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended,
           ------------
and all rules and regulations promulgated thereunder.

          "Expiration Date" means the date that is eighteen (18) months from the
           ---------------
closing of the Offering.

          "GE Investor" means GE Capital Equity Investments, Inc., a Delaware
           -----------
corporation.

          "Governmental Authority" means any nation or government, any state or
           ----------------------
other political subdivision thereof, and any agency, department or other entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

          "Holder" means the Person in whose name the Warrant set forth herein
           ------
is registered on the books of Company maintained for such purpose.

          "NASD" means the National Association of Securities Dealers, Inc., or
           ----
any successor corporation thereto.

          "Offering" means Company's initial public offering of Common Stock.
           --------

          "Organic Change" means (a) any sale, lease, exchange or other transfer
           --------------
of all or substantially all of the property, assets or business of Company, or
(b) any merger or consolidation to which Company is a party and which the
holders of the voting securities of Company immediately prior thereto own less
than a majority  of the

                                       2
<PAGE>

outstanding voting securities of the surviving entity immediately following such
transaction. For purposes of the preceding sentence, "voting securities" shall
mean securities, the holders of which are ordinarily, in the absence of
contingencies, entitled to elect the corporate directors (or Persons performing
similar functions).

          "Outstanding" means, when used with reference to Common Stock, on any
           -----------
date, all issued shares of Common Stock on such date, except shares then owned
or held by or for the account of Company or any Subsidiary thereof, and shall
include all shares issuable in respect of outstanding scrip or any certificates
representing fractional interests in shares of Common Stock.

          "Person" means any individual, sole proprietorship, partnership,
           ------
limited liability company, joint venture, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, entity or
government (whether federal, state, county, city, municipal or otherwise,
including, without limitation, any instrumentality, division, agency, body or
department thereof).

          "Purchase Price" means the sum of (i) the per share price paid by the
           --------------
public for the Common Stock in the Offering and (ii) 25% multiplied by the per
share price paid by the public for the Common Stock in the Offering.

          "Required Holders" means the holders of Warrants exercisable for in
           ----------------
excess of 50%  of the aggregate number of Warrant Stock then purchasable upon
exercise of all Warrants.

          "SEC" means the U.S. Securities and Exchange Commission, or any
           ---
successor thereto.

          "Securities Act" means the Securities Act of 1933, as amended, and all
           --------------
rules and regulations promulgated thereunder.

          "Subsidiary" means, with respect to any Person, (a) any corporation of
           ----------
which an aggregate of more than 50% of the outstanding Stock having ordinary
voting power to elect a majority of the board of directors of such corporation
is at the time, directly or indirectly, owned legally or beneficially by such
Person or one or more Subsidiaries of such Person, and (b) any partnership or
other entity in which such Person or one or more Subsidiaries of such Person
shall have an interest (whether in the form of voting or participation in
profits or capital contribution) of more than 50%.

          "Transfer" means any sale, offer to sell, contract to sell, transfer,
           --------
assignment, hypothecation, encumbrance, grant any option or warrant for the sale
or purchase of or other disposition, whether voluntary or involuntary, of any
Warrant or Warrant Stock.

          "Warrant" means this Warrant and all warrants issued upon transfer,
           -------
division or combination of, or in substitution for, this Warrant.  All Warrants
shall at all

                                       3
<PAGE>

times be identical as to terms and conditions and date, except as to the number
of shares of Common Stock for which they may be exercised.

          "Warrant Price" means an amount equal to (i) the number of shares of
           -------------
Common Stock being purchased upon exercise of this Warrant pursuant to Section
2, multiplied by (ii) the Current Warrant Price as of the date of such exercise.

          "Warrant Stock" means the shares of Common Stock issued or issuable
           -------------
upon the exercise of this Warrant.

II.    EXERCISE OF WARRANT
       -------------------

          2.   Exercise Period.  From and after the closing of the Offering
               ---------------
and until 5:00 P.M., Eastern Daylight Time, on the Expiration Date (the
"Exercise Period"), Holder may exercise this Warrant, on any Business Day, for
all or any part of the Warrant Stock, subject to compliance with the terms and
conditions of this Warrant and applicable securities laws.

          2.2  Exercise Notice; Delivery of Certificates.  In order to
               -----------------------------------------
exercise this Warrant, Holder shall deliver to Company at its principal office
at Two Executive Drive, Chelmsford, MA  01824 or at the office or agency
designated by Company pursuant to Section 15.2, (i) a written notice of Holder's
election to exercise this Warrant, specifying the number of shares of Common
Stock to be purchased, (ii) payment of the Warrant Price, and (iii) this
Warrant.  Such notice shall be substantially in the form of the subscription
form appearing at the end of this Warrant as Exhibit A, duly executed by Holder
or its agent or attorney.  Upon receipt of such notice, Company shall, as
promptly as practicable, and, subject to receipt of any necessary regulatory
approvals (including expiration of any applicable waiting period), in any event
within ten (10) Business Days thereafter, deliver to Holder a duly executed
certificate or certificates representing the aggregate number of full shares of
Common Stock issuable upon such exercise, together with cash in lieu of any
fraction of a share, as hereinafter provided.  Such stock certificate or
certificates shall be in such denominations and registered in the name
designated in the subscription form, subject to Article IX.  Holder or any other
Person so designated to be named therein shall be deemed to have become a holder
of record of such shares of Warrant Stock for all purposes, as of the date on
which all items in clauses (i)-(iii) above have been received by Company and all
taxes required to be paid by Holder, if any, pursuant to Section 2.4 have been
paid.  If this Warrant shall have been exercised in part, Company shall cancel
this Warrant upon surrender thereof and shall deliver to Holder a new Warrant
evidencing the rights of Holder to purchase the remaining shares of Common Stock
issuable upon exercise of this Warrant, which new Warrant shall in all other
respects be identical with this Warrant.  Notwithstanding the foregoing, if in
connection with the exercise of a Warrant or acquisition of shares of Common
Stock, any regulatory approval shall be required, including expiration of any
applicable waiting period, then, if the Warrant is exercised prior to such
approval, the Expiration Date shall be extended while any such regulatory
approval or waiting period is pending and

                                       4
<PAGE>

promptly following receipt of such approval or expiration of such waiting
period, the Warrant shall be surrendered and the Warrant Price shall be paid as
provided herein.

          2.3  Payment of Warrant Price.  Payment of the Warrant Price shall
               ------------------------
be made at the option of the Holder by:

               (i)   certified or official bank check;

               (ii)  wire transfer;

               (iii) the surrender to Company of that number of shares of
          Warrant Stock (or the right to receive such number of shares under
          this Warrant) or shares of Common Stock having an aggregate Current
          Market Price equal to or greater than the Current Warrant Price for
          all shares then being purchased; or

               (iv)  any combination thereof.

          2.4  Payment of Taxes.  Company shall pay all expenses, taxes and
               ----------------
other governmental charges with respect to the issuance and delivery of the
Warrant Stock, unless such tax or charge is imposed by law upon Holder.  Company
shall not be required, however, to pay any transfer tax or other similar charge
imposed in connection with the issuance of any certificate for shares of Common
Stock in any name other than that of Holder, and in such case Company shall not
be required to issue or deliver any stock certificate until such tax or other
charge has been paid or it has been established to the satisfaction of Company
that no such tax or other charge is due.

          2.5  Fractional Shares.  Company shall not be required to issue a
               -----------------
fractional share of Common Stock upon exercise of any Warrant.  As to any
fraction of a share which the Holder of one or more Warrants would otherwise be
entitled to purchase upon such exercise, Company shall pay a cash adjustment to
Holder in respect of such final fraction in an amount equal to the same fraction
of the Current Market Price per share of Common Stock on the date of exercise.

III.  TRANSFER, DIVISION AND COMBINATION
      ----------------------------------

          3.   Transfer.  Subject to compliance with Article IX of this
               --------
Warrant, Transfer of this Warrant and all rights hereunder, in whole or in
part, shall be registered on the books of Company to be maintained for such
purpose, upon surrender of this Warrant at the principal office of Company
referred to in Section 2.2 or the office or agency designated by Company
pursuant to Section 15.2, together with a duly executed written assignment of
this Warrant substantially in the form of Exhibit B hereto and funds sufficient
                                          ---------
to pay any transfer taxes payable upon the making of such Transfer. Upon such
surrender and, if required, such payment, Company shall, subject to Article IX,
execute and deliver a new Warrant or Warrants in the name of the assignee or
assignees and in the denomination specified in such instrument of assignment,
and shall issue to the

                                       5
<PAGE>

 assignor a new Warrant evidencing the portion of this Warrant not so assigned,
 and this Warrant shall promptly be cancelled. A Warrant, if properly assigned
 in compliance with Article IX, may be exercised by a new Holder for the
 purchase of shares of Common Stock without having a new Warrant issued. Each
 taker and holder of this Warrant, by taking or holding the same, consents and
 agrees that when a written assignment of this Warrant is duly executed, the
 assignee may be treated by Company, and all other persons dealing with this
 Warrant, as the absolute owner hereof for any purpose and as the person
 entitled to exercise the rights represented hereby, any notice to the contrary
 notwithstanding; provided, however, that until a transfer of this Warrant is
 duly registered on the books of Company, Company may treat the Holder hereof as
 the owner for all purposes.

          3.2  Division and Combination.  Subject to Article IX, this Warrant
               ------------------------
may be divided or combined with other Warrants upon presentation hereof at the
aforesaid office or agency of Company, together with a duly executed written
notice specifying the names and denominations in which new Warrants are to be
issued. Subject to compliance with Section 3.1 and with Article IX as to any
Transfer which may be involved in such division or combination, Company shall
execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combine d in accordance with such notice.

          3.3  Expenses.  Company shall prepare, issue and deliver at its own
               --------
expense (other than transfer taxes) the new Warrant or Warrants under this
Article III.

          3.4  Maintenance of Books.  Company agrees to maintain, at its
               --------------------
aforesaid office or agency, books for the registration of Warrants and the
Transfer of the Warrants.

IV.  ADJUSTMENTS
     -----------

          4.   The number of shares of Common Stock for which this Warrant is
exercisable, or the price at which such shares may be purchased upon exercise of
this Warrant, shall be subject to adjustment from time to time as set forth in
this Article IV.  Company shall give each Holder notice of any event described
below which requires an adjustment pursuant to this Article IV at the time of
such event.  Notwithstanding the foregoing, the Holder acknowledges and agrees
that during the period subsequent to the date hereof and prior to the closing of
the Offering, Company may effect a stock split and that the 200,000 shares
issuable upon exercise of this Warrant and the Current Warrant Price shall not
be adjusted to reflect such stock split.

          4.1  Stock Dividends, Subdivisions and Combinations.  If at any time
               ----------------------------------------------
Company shall:

          (a)  take a record of the holders of Common Stock for the purpose of
entitling them to receive a dividend payable in, or other distribution of,
Common Stock,

                                       6
<PAGE>

          (b)  subdivide or split its Outstanding shares of Common Stock into a
larger number of shares of Common Stock, or

          (c)  combine or reclassify its Outstanding shares of Common Stock into
a smaller number of shares of Common Stock,

               (i)   the number of shares of then Common Stock for which this
   Warrant is exercisable immediately after the occurrence of any such event
   shall be adjusted to equal the number of shares of Common Stock which a
   record holder of the same number of shares of Common Stock for which this
   Warrant is exercisable immediately prior to the occurrence of such event or
   the record date therefor, whichever is earlier, would own or be entitled to
   receive after the happening of such event; and

               (ii)  the Current Warrant Price shall be adjusted to equal (A)
   the Current Warrant Price multiplied by the number of shares of Common Stock
   for which this Warrant is exercisable immediately prior to the adjustment
   divided by (B) the number of shares for which this Warrant is exercisable
   immediately after such adjustment.

          4.2  Other Provisions Applicable to Adjustments under Article IV.
               -----------------------------------------------------------
The following provisions shall be applicable to the making of adjustments of the
number of shares of Common Stock for which this Warrant is exercisable and the
Current Warrant Price provided for in this Article IV:

          (a)  When Adjustments to Be Made.  No adjustment in the Current
               ---------------------------
Warrant Price shall be required unless such adjustment would require an increase
or decrease of at least one percent in such price; provided that any adjustments
which by reason of this Section 4.7(a) are not required to be made shall be
carried forward and taken into account in any subsequent adjustment. All
calculations under this Article IV shall be made to the nearest one tenth of a
cent or to the nearest hundredth of a share, as the case may be.

          (b)  Fractional Interests.  In computing adjustments under this
               --------------------
Article IV, fractional interests in Common Stock shall be taken into account to
the nearest 1/10th of a share.

          4.3  Organic Change.  In case of any Organic Change (or any other
               --------------
merger or consolidation to which Company is a party, which for purposes of this
Section 4.3 shall be deemed an Organic Change), each Holder shall have the right
thereafter to receive, upon exercise of the Warrant during the period specified
herein and upon payment of the Warrant Price, in lieu of the Common Stock
issuable upon such exercise prior to consummation of such Organic Change, the
kind and amount of shares of stock and other securities and property receivable
(including cash) upon the consummation of such Organic Change by a holder of
that number of shares of Common Stock into which

                                       7
<PAGE>

the Warrant was exercisable immediately prior to such Organic Change (including,
on a pro rata basis, the cash, securities or property received by holders of
Common Stock in any tender or exchange offer that is a step in such Organic
Change). In case securities or property other than Common Stock shall be
issuable or deliverable upon conversion as aforesaid, then all references in
this Article IV shall be deemed to apply, so far as appropriate and nearly as
may be, to such other securities or property. In case of any Organic Change, the
successor or acquiring corporation (if other than Company) shall expressly
assume the due and punctual observance and performance of each covenant and
condition of this Warrant to be performed and observed by Company and all the
obligations and liabilities hereunder, subject to such modifications as may be
deemed appropriate (as determined by resolution of the Board) in order to
provide for adjustments of shares of Common Stock for which this Warrant is
exercisable which shall be as nearly equivalent as practicable to the
adjustments provided for in this Article IV. For purposes of this Section 4.3,
"common stock of the successor or acquiring corporation" shall include stock of
such corporation of any class which is not preferred as to dividends or assets
over any other class of stock of such corporation and which is not subject to
redemption and shall also include any evidences of indebtedness, shares of stock
or other securities which are convertible into or exchangeable for any such
stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any warrants or other rights to subscribe for
or purchase any such stock. The foregoing provisions of this Section 4.3 shall
similarly apply to successive reorganizations, reclassifications, mergers,
consolidations or disposition of assets.

V.   NOTICES TO WARRANT HOLDERS
     --------------------------

          5.   Notice of Adjustments.  Whenever an adjustment to this Warrant is
               ---------------------
made pursuant to Article IV, Company shall promptly deliver to each Holder a
certificate executed by the chief financial officer of Company setting forth, in
reasonable detail, the event requiring the adjustment and the calculation
(including the method and information used therein) of such adjustment,
specifying the number of shares of Common Stock for which this Warrant is
exercisable and (if such adjustment was made pursuant to Section 4.3) describing
the number and kind of any other shares of stock or other securities or property
for which this Warrant is exercisable, and any change in the purchase price or
prices thereof, after giving effect to such adjustment or change.  Company shall
keep at its office or agency designated pursuant to Section 15.2 copies of all
such certificates and cause the same to be available for inspection at said
office during normal business hours by any Holder or any prospective purchaser
of a Warrant designated by a Holder thereof.

          5.2  Notice of Corporate Action.  If at any time
               --------------------------

          (a)  Company shall take a record of the holders of its Common Stock
for the purpose of entitling them to receive a dividend or other distribution,
or any right to subscribe for or purchase any evidences of its indebtedness, any
shares of stock of any class or any other securities or property, or to receive
any other right; or

                                       8
<PAGE>

          (b)  there shall be any capital reorganization of Company, any
reclassification or recapitalization of the capital stock of Company or any
consolidation or merger of Company with, or any sale, transfer or other
disposition of all or substantially all the property, assets or business of
Company to, another corporation; or

          (c)  there shall be a voluntary or involuntary dissolution,
liquidation or winding up of Company;

then, in any one or more of such cases, Company shall give to Holder (i) at
least 10 days' prior written notice of the date on which a record date, if
applicable, shall be selected in respect of such event and (ii) in the case of
any such event, at least 20 days' prior written notice of the date when the same
shall take place.  Such notice shall also specify (i) the date on which the
holders of Common Stock shall be entitled to any such dividend, distribution or
right, and the amount and character thereof and (ii) the date on which any such
reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up is to take place and the
time, if any such time is to be fixed, as of which the holders of Common Stock
shall be entitled to exchange their shares of Common Stock for securities or
other property deliverable upon such event.  Notwithstanding the above, the
failure to give such notice shall not affect the validity of any transaction for
which notice was required to be given.

VI.  NO IMPAIRMENT
     -------------

          6.   Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such commercially reasonable actions as may be necessary or appropriate to
protect the rights of Holder against impairment.  Without limiting the
generality of the foregoing, Company will take all such commercially reasonable
action as may be necessary or appropriate in order that Company may validly and
legally issue fully paid and nonassessable shares of Common Stock upon the
exercise of this Warrant, including taking such commercially reasonable action
as is necessary for the Current Warrant Price to be not less than the par value
of the shares of Common Stock issuable upon exercise of this Warrant.  Company
will use commercially reasonable efforts to obtain all such authorizations,
exemptions or consents from any Governmental Authority having jurisdiction
thereof as may be necessary to enable Company to perform its obligations under
this Warrant.

VII. RESERVATION AND AUTHORIZATION OF COMMON STOCK
     ---------------------------------------------

          7.   From and after the date of this Warrant, Company shall at all
times reserve and keep available for issuance upon the exercise of Warrants such
number of its authorized but unissued shares of Common Stock as will be
sufficient to permit the

                                       9
<PAGE>

exercise in full of all outstanding Warrants. All shares of Common Stock which
shall be so issuable, when issued upon exercise of any Warrant and payment
therefor in accordance with the terms of such Warrant, shall be duly and validly
issued, fully paid and nonassessable, and not subject to preemptive or similar
rights.

VIII.  TAKING OF RECORD; STOCK AND WARRANT TRANSFER BOOKS
       --------------------------------------------------

          8.   In the case of all dividends or other distributions by Company to
the holders of its Common Stock with respect to which any provision of Article
IV refers to the taking of a record of such holders, Company will take such
record as of the close of business on a Business Day. Company will not at any
time, except upon dissolution, liquidation or winding up of Company, close its
stock transfer books or Warrant transfer books so as to prevent or delay the
exercise or transfer of any Warrant.

IX.    RESTRICTIONS ON TRANSFERABILITY
       -------------------------------

          9.   No Transfer of the Warrants and the Warrant Stock shall be
allowed before satisfaction of the conditions specified in this Article IX. Any
purported Transfer of the Warrant or Warrant Stock made other than in accordance
with this Article IX shall be null and void and of no force or effect. Holder,
by acceptance of this Warrant, agrees to be bound by the provisions of this
Article IX.

          9.1  Restrictive Legend.   (a) Except as otherwise provided in this
               ------------------
Article IX, each certificate for Warrant Stock initially issued upon the
exercise of this Warrant, and each certificate for Warrant Stock issued to any
subsequent transferee of any such certificate, shall be stamped or otherwise
imprinted with a legend in substantially the following form:

               "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE
          SECURITIES LAWS AND MAY NOT BE TRANSFERRED, OFFERED OR SOLD EXCEPT IN
          COMPLIANCE THEREWITH."

          (b)  Except as otherwise provided in this Article IX, each Warrant
shall be stamped or otherwise imprinted with a legend in substantially the
following form:

          "THIS WARRANT AND THE SHARES OF COMMON STOCK UNDERLYING THIS WARRANT
          HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
          OR ANY STATE SECURITIES LAWS AND MAY NOT BE TRANSFERRED, OFFERED OR
          SOLD EXCEPT IN COMPLIANCE THEREWITH AND THE PROVISIONS OF THIS
          WARRANT."

                                       10
<PAGE>

          9.2  Restrictions on Transfer.  Absent an effective registration
               ------------------------
statement filed with the SEC under the Securities Act covering the disposition
or sale of this Warrant or the Warrant Stock, as the case may be, and
registration or qualification under applicable state securities laws, a Holder
will not Transfer any or all such Warrants or Warrant Stock, as the case may be,
unless Company has received an opinion of counsel, in form and substance
reasonably satisfactory to Company, to the effect that such registration is not
required in connection with such disposition.

          9.3  Notice of Proposed Transfers.  Prior to any Transfer of any
               ----------------------------
Warrants or any Warrant Stock, the holder of such Warrants or Warrant Stock
shall give written notice to Company of such Transfer, indicating the
circumstances of the proposed Transfer, and furnish Company an opinion of
counsel, in form and substance reasonably satisfactory to counsel for Company,
to the effect that the proposed Transfer may be made without registration under
the Securities Act or qualification under any applicable state securities laws.
Each certificate, if any, evidencing such shares of Warrant Stock issued upon
such Transfer shall bear the restrictive legend set forth in Section 9.1(a), and
each Warrant issued upon such Transfer shall bear the restrictive legend set
forth in Section 9.1(b), unless in the opinion of counsel to such holder which
is reasonably acceptable to Company such legend is not required in order to
ensure compliance with the Securities Act.

          9.4  Termination of Restrictions.  Notwithstanding the foregoing, the
               ---------------------------
restrictions imposed by Sections 9.1 through 9.3 upon the transferability of the
Warrants and the Warrant Stock, and the legend requirements of Section 9.1,
shall terminate as to any particular Warrant or share of Warrant Stock (i) when
and so long as such security shall have been effectively registered under the
Securities Act and disposed of pursuant thereto or (ii) when Company shall have
received an opinion of counsel reasonably satisfactory to it that such Warrant
or shares of Warrant Stock may be transferred without registration thereof under
the Securities Act. Whenever the restrictions imposed by Sections 9.1 through
9.3 shall terminate as to this Warrant, as hereinabove provided, the Holder
shall be entitled to receive from Company, at the expense of Company, a new
Warrant without the restrictive legend set forth in Section 9.1(b). Whenever the
restrictions imposed by Sections 9.1 through 9.3 shall terminate as to any share
of Warrant Stock, as hereinabove provided, the holder thereof shall be entitled
to receive from Company, at Company's expense, a new certificate representing
such Warrant Stock not bearing the restrictive legend set forth in Section
9.1(a).

          9.5  Agreement Not to Transfer.
               --------------------------

               (a) Prior to the date 180 days after the date of the final
prospectus relating to the Offering, the Holder shall not, and shall not permit
any other Person, to the extent allowable by law, who holds of record any of the
undersigned's Warrants or Warrant Stock, directly or indirectly, Transfer or
offer to Transfer any Warrants or Warrant Stock (the "Transfer Restrictions")
other than to affiliates who agree to be bound by the terms of this Warrant,
unless Company consents to such Transfer and the

                                       11
<PAGE>

transferee agrees to be bound by this Warrant in writing.

               (b) In order to enforce the Transfer Restrictions, Company may
impose stop-transfer instructions with respect to the Warrants and Warrant Stock
until the end of the restricted period.

          9.6  Market Stand-Off.  In addition to the Transfer Restrictions
               ----------------
(which shall in no way be limited by the following), in connection with the
first underwritten public offering by Company of its equity securities pursuant
to an effective registration statement filed under the Securities Act following
the Offering, the Holder shall not Transfer or offer to Transfer any Warrant or
Warrant Stock without the prior written consent of Company and its underwriters.
Such restriction (the "Market Stand-Off") shall be in effect for such period of
time from and after the effective date of the final prospectus for the offering
as may be requested by Company or such underwriters; provided, however, that (i)
                                                     --------  -------
such Market Stand-Off shall not exceed ninety (90) days, (ii) the Holder shall
be subject to the Market Stand-Off only if the officers, directors and other
stockholders of Company are also subject to similar restrictions, and (iii) the
Holder shall only be subject to the Market Stand-Off if Company registers at
least fifty percent (50%) of the Registrable Securities (as defined in the
Common Stock Purchase Agreement by and between Company and GE Investor dated as
of the date hereof) in the offering. In order to enforce the Market Stand-Off,
Company may impose stop-transfer instructions with respect to the Warrant and
Warrant Stock until the end of the applicable stand-off period.

X.   SUPPLYING INFORMATION
     ---------------------

          10.  Company shall cooperate with each Holder of a Warrant and each
holder of Warrant Stock in supplying such information as may be reasonably
necessary for such Holder to complete and file any information reporting forms
presently or hereafter required by the SEC and other regulatory authorities as a
condition to the availability of an exemption from the Securities Act for the
sale of any Warrant or Warrant Stock.

                                       12
<PAGE>

XI.   LOSS OR MUTILATION
      ------------------

          11.  Upon receipt by Company from any Holder of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of this Warrant and indemnity reasonably satisfactory to it (it being
understood that the written agreement of GE Investor shall be sufficient
indemnity), and in case of mutilation upon surrender and cancellation hereof,
Company will (at the Holder's expense) execute and deliver in lieu hereof a new
Warrant of like tenor to such Holder; provided, in the case of mutilation, no
                                      --------
indemnity shall be required if this Warrant in identifiable form is surrendered
to Company for cancellation.

XII.  LIMITATION OF LIABILITY; RIGHTS AS STOCKHOLDER
      ----------------------------------------------

          12.  Liability.  No provision hereof, in the absence of affirmative
               ---------
action by Holder to purchase shares of Common Stock, and no enumeration herein
of the rights or privileges of Holder hereof, shall give rise to any liability
of such Holder for the purchase price of any Common Stock or as a stockholder of
Company, whether such liability is asserted by Company or by creditors of
Company.

          12.2 Rights.  This Warrant shall not entitle the Holder to any voting
               ------
rights, dividend rights or other rights as a stockholder of Company, either at
law or equity, prior to the exercise of this Warrant and the payment of the
Warrant Price.

XIII. REPRESENTATIONS AND WARRANTIES OF COMPANY
      -----------------------------------------

          13.  Organization and Good Standing.  Company is a corporation duly
               ------------------------------
organized, validly existing and in corporate good standing under the laws of the
State of Delaware and has full corporate power and authority to conduct its
business as presently conducted.

          13.2 Authorization.  All corporate action on the part of Company,
               -------------
its officers, directors and stockholders necessary for the authorization,
execution and delivery of this Warrant, the performance of all obligations of
Company hereunder, and the authorization, reservation, issuance and delivery of
the Warrant Stock has been taken or will be taken prior to the closing of the
Offering, subject to laws of general application relating to bankruptcy,
insolvency and the relief of debtors and general principles of equity.

          13.3 Valid Issuance of Warrant Stock.  The Warrant Stock, when
               -------------------------------
issued, sold and delivered in accordance with the terms of the Warrant for the
consideration expressed, will be duly and validly issued, fully paid and
nonassessable and, based in part upon the representations of the Holder in this
Warrant, will be issued in compliance with all applicable federal and state
securities laws.

                                       13
<PAGE>

          13.4  Compliance with Other Documents.  The execution and delivery
                -------------------------------
of this Warrant, consummation of the transactions contemplated hereby, and
compliance with the terms and provisions hereof will not conflict with or result
in a breach of the terms and conditions of, or constitute a default under
Company's charter or by-laws or of any contract or agreement to which Company is
now a party, except where such conflict, breach or default of any such contract
or agreement, either individually or in the aggregate, would not have a material
adverse effect on Company's business, financial condition or results of
operations.

XIV.  REPRESENTATIONS AND WARRANTIES OF HOLDER.  The Holder hereby
      ----------------------------------------
represents and warrants that:

          14.1  Investigation.   The Holder acknowledges that it has
                -------------
carefully reviewed the Registration Statement and the representations concerning
Company contained in this Warrant and has had an opportunity to discuss the
business, affairs and current prospects of Company with Company's officers and
members of its management.  The Holder further acknowledges having had access to
information about Company that it has requested or considers necessary for
purposes of this Warrant and purchasing the Warrant Stock.

          14.2  Accredited Investor, Etc.    The Holder is an "accredited
                ------------------------
investor" as such term is defined in Regulation D adopted by the SEC.  The
Holder is an investor in securities of companies in the development stage, in
Company's industry and acknowledges that it is able to fend for itself, can bear
the economic risk of its investment and has such knowledge and experience in
financial or business matters that it is capable of evaluating the merits and
risks of the investment in the Warrant Stock.

          14.3  Purchase Entirely for Own Account.  This Warrant is
                ---------------------------------
issued to the Holder in reliance upon the Holder's representation to Company
that the Warrant Stock will be acquired for investment for the Holder's own
account, not as nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that the Holder has no present intention
of selling, granting any participation in, or otherwise distributing the same,
other than in compliance with the federal securities laws and subject to the
provisions of this Warrant.

XV.   MISCELLANEOUS
      -------------

          15.1  Nonwaiver and Expenses.   No course of dealing or any delay or
                ----------------------
failure to exercise any right hereunder on the part of Holder or Company, as the
case may be, shall operate as a waiver of such right or otherwise prejudice
Holder's or Company's rights, powers or remedies.  If Company or Holder fails to
make, when due, any payments provided for under this Warrant, or fails to comply
with any other provision of this Warrant, Company or Holder, as the case may be,
shall pay to Holder or Company such amounts as shall be sufficient to cover any
costs and expenses including, but not limited to, reasonable attorneys' fees,
including those of appellate proceedings, incurred

                                       14
<PAGE>

by Holder or Company, as the case may be, in collecting any amounts due pursuant
hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

          15.2  Notices.   All notices and communications to be given or made
                -------
under this Warrant shall be in writing and delivered by hand-delivery,
registered first class mail (return receipt requested), facsimile, or air
courier guaranteeing overnight delivery, addressed as follows, or to such other
Person or address as the party named below may designate by notice:

          (a)  If to any Holder or holder of Warrant Stock, at its last known
address (or telecopier number) appearing on the books of Company maintained for
such purpose or if different the address (or telecopier number) last provided by
Holder to Company in accordance with this Section 15.2.

          (b)  If to Company at

               Two Executive Drive
               Chelmsford, MA  01824
               Telecopier No.:  (978) 452-6820
               Attn:  President

Each such notice or other communication shall be deemed effective (i)
acknowledged or if given by telecopy, when the telecopy is transmitted to the
number specified herein and the intended recipient confirms receipt of the
telecopy or the sender receives an electronic confirmation of successful
transmission or (ii) if given by any other means, when received at the address
specified herein.

          15.3  Successors and Assigns.  Subject to the provisions of Section 3
                ----------------------
and Article IX, this Warrant and the rights evidenced hereby shall inure to
the benefit of and be binding upon the successors and assigns of Company and the
successors and permitted assigns of Holder.  The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this Warrant
and shall be enforceable by any such Holder.  No other Person shall have any
right, benefit or obligation under this Warrant.

          15.4  Amendment; Waiver.  Any provision of this Warrant may be
                -----------------
amended or waived if, and only if, such amendment or waiver is in writing and
signed, in the case of an amendment, by the Holder and Company, or in the case
of a waiver, by the party against whom the waiver is to be effective.  No
Warrant may be modified or amended to reduce the number of shares of Common
Stock for which such Warrant is exercisable or to increase the price at which
such shares may be purchased upon exercise of such Warrant (before giving effect
to any adjustment as provided therein) without the prior written consent of the
Holder.

          15.5  Severability.  If one or more provisions of this Warrant are
                ------------
held to be unenforceable to any extent under applicable law, such provision
shall be interpreted as if it were written so as to be enforceable to the
maximum extent permitted by law so as

                                       15
<PAGE>

to effectuate the parties' intent to the maximum extent, and the balance of this
Warrant shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms to the maximum extent permitted by law.

          15.6  Section and Other Headings.  The section and headings
                --------------------------
contained in this Warrant are for the convenience only and shall not affect the
meaning or interpretation of this Warrant.

          15.7  Governing Law.  This Warrant shall be governed by, construed
                -------------
and enforced in accordance with the laws of the State of Delaware, without
regard to the conflict of law principles of such state.

          15.8  Covenant Regarding Consent.  Company covenants to use
                --------------------------
commercially reasonable efforts upon the request of a Holder to seek any waivers
or consents, or to take any other action required, to effectuate the exercise of
this Warrant and the rights hereunder by any Holder.

          15.9  Remedies.  Each Holder and Company, in addition to being
                --------
entitled to exercise all rights granted by law, including recovery of damages,
will be entitled to specific performance of its rights under this Warrant.
Company and each Holder agrees that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by it of the provisions
of this Warrant and hereby agrees to waive the defense in any action for
specific performance that a remedy at law would be adequate.  No failure or
delay by either party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof nor shall any single or partial exercise
thereon preclude any other or further exercise thereof or the exercise of any
other right, power or privilege.  The rights and remedies herein provided shall
be cumulative and not exclusive of any rights or remedies provided by law.  In
any action or proceeding brought to enforce any provision of this Warrant or
where any provision hereof is validly asserted as a defense, the successful
party shall be entitled to recover reasonable attorneys' fees in addition to any
other available remedy.

          15.10 Registration Rights.  All Warrant Stock shall be "Registrable
                -------------------
Securities" or such other definition of securities entitled to registration
rights pursuant to the Common Stock Purchase Agreement by and between Company
and GE Investor dated as of the date hereof, as such agreement may be amended
from time to time, and are entitled, subject to the terms and conditions of that
agreement, to all registration rights granted to holders of Registrable
Securities thereunder.  Each Holder hereby agrees to be bound by the terms,
conditions and obligations set forth in Exhibit A of such agreement.
                                        ---------

                        [SIGNATURES BEGIN ON NEXT PAGE]

                                       16
<PAGE>

     IN WITNESS WHEREOF, Company has caused this Warrant to be duly executed and
attested by its Secretary or an Assistant Secretary.

Dated:  February 1, 2000

                              MATRIXONE, INC.

                              By: /s/ Mark F. O'Connell
                                  ____________________________

                              Name: Mark F. O'Connell

                              Title: President & CEO

Attest:

By: /s/ Maurice L. Castonguay
    _________________________________
Name: Maurice L. Castonguay
Title: CFO

                                       17
<PAGE>

                                   EXHIBIT A

                       SUBSCRIPTION FORM AND INVESTMENT
                           REPRESENTATION STATEMENT

                 [To be executed only upon exercise of Warrant]

1.  The undersigned registered owner of this Warrant irrevocably exercises this
___ Warrant for the purchase of ______ shares of Common Stock of MatrixOne,
Inc., surrenders this Warrant and herewith makes payment therefor (in cash or as
otherwise permitted in this Warrant) and for any transfer taxes payable pursuant
to the terms of the Warrant, all at the price and on the terms and conditions
specified in this Warrant and requests that certificates for the shares of
Common Stock hereby purchased (and any securities or other property issuable
upon such exercise) be issued in the name of and delivered to _____________
whose address is _________________ and, if such shares of Common Stock shall not
include all of the shares of Common Stock issuable as provided in this Warrant,
that a new Warrant of like tenor and date for the balance of the shares of
Common Stock issuable hereunder be delivered to the undersigned.

2.  (a)  The undersigned is sufficiently aware of Company's business affairs and
financial condition to reach an informed and knowledgeable decision to acquire
the Warrant Stock.  The undersigned is able to fend for itself, can bear the
economic risk of its investment and has such knowledge and experience in
financial or business matters that it is capable of evaluating the merits and
risks of the investment in the Warrant Stock.  The shares of Warrant Stock to be
received by the undersigned upon exercise of the Warrant are being acquired for
its own account, not as a nominee or agent, and not with a view to resale or
distribution of any part thereof, and the undersigned has no present intention
of selling, granting any participation in, or otherwise distributing the same.
The undersigned believes it has received all the information it considers
necessary or appropriate for deciding whether to purchase the Warrant Stock.

    (b)  The undersigned understands that the Warrant Stock has not been
registered under the Securities Act in reliance upon a specific exemption
therefrom.

    (c)  The undersigned further understands that the Warrant Stock must be
held indefinitely unless subsequently registered under the Securities Act or
unless an exemption from registration is otherwise available (such as Rule 144
under the Securities Act).  In addition, the undersigned understands that the
certificate evidencing the Warrant Stock may be imprinted with a legend which
prohibits the transfer of the Warrant Stock unless it is registered or such
registration is not required in the opinion of counsel reasonably satisfactory
to counsel for Company.

    (d)  The undersigned represents that he is an "accredited investor" as
such term is defined in Regulation D adopted by the SEC.
<PAGE>

          IN WITNESS WHEREOF, this Subscription Form and Investment
Representation Statement has been executed and delivered by Holder effective
this ____ day of _________, ______.

                         _______________________________
                         (Name of Registered Owner)

                         _______________________________
                         (Signature of Registered Owner)

                         _______________________________
                         (Street Address)

                         _______________________________
                         (City)     (State)  (Zip Code)

NOTICE:   The signature on this subscription must correspond with the name as
          written upon the face of the within Warrant in every particular,
          without alteration or enlargement or any change whatsoever.

                                       2
<PAGE>

                                   EXHIBIT B

                                ASSIGNMENT FORM

          FOR VALUE RECEIVED the undersigned registered owner of this ___
Warrant hereby sells, assigns and transfers unto the Assignee named below all of
the rights of the undersigned under this Warrant, with respect to the number of
shares of Common Stock set forth below:

Name and Address of Assignee                      No.  of Shares of Common Stock
----------------------------                      ------------------------------

and does hereby irrevocably constitute and appoint ___________________________
attorney-in-fact to register such transfer on the books of MatrixOne, Inc.
maintained for the purpose, with full power of substitution in the premises.

Dated:__________________     Print Name:___________________

                             Signature:____________________

                             Witness:______________________

NOTICE:   The signature on this assignment must correspond with the name as
          written upon the face of the within Warrant in every particular,
          without alteration or enlargement or any change whatsoever.

                                       3

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