Document:

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                                                                   Exhibit 10.15

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                             STOCKHOLDERS AGREEMENT

                                      among

                                UGS Capital Corp.

                              UGS Capital Corp. II

                               UGS Holdings, Inc.

                                    UGS Corp.

                                       and

       Certain Stockholders of UGS Capital Corp. and UGS Capital Corp. II

                            Dated as of May 24, 2004

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                <C>
1.  EFFECTIVENESS; DEFINITIONS.................................................................     2
          1.1.  Closing........................................................................     2
          1.2.  Definitions....................................................................     2
2.  VOTING AGREEMENT...........................................................................     2
          2.1.  Significant Transactions.......................................................     2
          2.2.  Consent to Amendment...........................................................     2
          2.3.  The Company and Midco..........................................................     3
          2.4.  Period.........................................................................     3
3.  TRANSFER RESTRICTIONS......................................................................     3
          3.1.  Transfers Allowed..............................................................     3
                     3.1.1.  Permitted Transferees.............................................     3
                     3.1.2.  Distributions and Charitable Contributions........................     3
                     3.1.3.  Public Transfers..................................................     3
                     3.1.4.  Tag Along and Drag Along..........................................     3
                     3.1.5.  Other Private Transfers...........................................     4
          3.2.  Certain Transferees to become Parties..........................................     4
          3.3.  Restrictions on Transfers to Strategic Investors...............................     5
          3.4.  Impermissible Transfer.........................................................     5
          3.5.  Notice of Transfer.............................................................     6
          3.6.  Other Restrictions on Transfer.................................................     6
          3.7.  Period.........................................................................     6
4.  "TAG ALONG" AND "DRAG ALONG" RIGHTS AND RIGHT OF FIRST OFFER...............................     6
          4.1.  Tag Along......................................................................     6
                     4.1.1.  Notice............................................................     6
                     4.1.2.  Exercise..........................................................     7
                     4.1.3.  Irrevocable Offer.................................................     7
                     4.1.4.  Reduction of Shares Sold..........................................     7
                     4.1.5.  Additional Compliance.............................................     8
          4.2.  Drag Along.....................................................................     8
                     4.2.1.  Exercise..........................................................     9
          4.3.  Miscellaneous..................................................................     9
                     4.3.1.  Certain Legal Requirements........................................     9
                     4.3.2.  Further Assurances................................................    10
                     4.3.3.  Sale Process......................................................    10
                     4.3.4.  Treatment of Options, Warrants and Convertible Securities.........    11
                     4.3.5.  Expenses..........................................................    11
                     4.3.6.  Closing...........................................................    11
          4.4.  Right of First Offer...........................................................    11
                     4.4.1.  Notice............................................................    12
                     4.4.2.  Exercise..........................................................    12
                     4.4.3.  Irrevocable Offer.................................................    12
                     4.4.4.  Acceptance of Offers..............................................    12
                     4.4.5.  Additional Compliance.............................................    13
                     4.4.6.  Determination of the Number of Subject Shares to be Sold..........    13
</TABLE>

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<TABLE>
<S>                                                                                                <C>
          4.5.  Period.........................................................................    14
5.  HOLDER LOCK-UP.............................................................................    14
6.  CALL OPTION................................................................................    15
          6.1.  Call Option....................................................................    15
                     6.1.1.  Call Option Upon Termination......................................    15
                     6.1.2.  Payment...........................................................    15
          6.2.  Cash Payments..................................................................    15
          6.3.  Prepayments....................................................................    16
          6.4.  Final Maturity Date............................................................    16
          6.5.  Notices, etc...................................................................    16
          6.6.  Closing........................................................................    16
          6.7.  Investor Group Call Option.....................................................    16
          6.8.  Period.........................................................................    17
7.  REMEDIES...................................................................................    17
          7.1.  Generally......................................................................    17
          7.2.  Deposit........................................................................    17
8.  LEGENDS....................................................................................    17
          8.1.  Restrictive Legend.............................................................    17
          8.2.  1933 Act Legends...............................................................    18
          8.3.  Stop Transfer Instruction......................................................    18
          8.4.  Termination of 1933 Act Legend.................................................    18
9.  AMENDMENT, TERMINATION, ETC................................................................    18
          9.1.  Oral Modifications.............................................................    18
          9.2.  Written Modifications..........................................................    18
          9.3.  Withdrawal from Agreement......................................................    19
          9.4.  Effect of Termination..........................................................    19
10.  DEFINITIONS...............................................................................    19
          10.1.  Certain Matters of Construction...............................................    20
          10.2.  Definitions...................................................................    20
11.  MISCELLANEOUS.............................................................................    29
          11.1.  Authority: Effect.............................................................    29
          11.2.  Notices.......................................................................    29
          11.3.  Binding Effect, Etc...........................................................    30
          11.4.  Descriptive Heading...........................................................    31
          11.5.  Counterparts..................................................................    31
          11.6.  Severability..................................................................    31
          11.7.  No Recourse...................................................................    31
          11.8.  Aggregation of Shares.........................................................    31
          11.9.  Obligations of Company, Midco, Holdings and OpCo..............................    31
12.  GOVERNING LAW.............................................................................    32
          12.1.  Governing Law.................................................................    32
          12.2.  Consent to Jurisdiction.......................................................    32
          12.3.  WAIVER OF JURY TRIAL..........................................................    32
          12.4.  Exercise of Rights and Remedies...............................................    33
</TABLE>

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                             STOCKHOLDERS AGREEMENT

      This Stockholders Agreement (the "Agreement") is made as of May 24, 2004
by and among:

      (i)   UGS Capital Corp., a Delaware corporation (formerly known as BSW
            Holdings, Inc.) (together with its successors and permitted assigns,
            the "Company");

      (ii)  UGS Capital Corp. II, a Delaware corporation (together with its
            successors and permitted assigns, "Midco");

      (iii) UGS Holdings, Inc., a Delaware corporation (together with its
            successors and permitted assigns, "Holdings");

      (iv)  UGS Corp., a Delaware corporation (together with its successors and
            permitted assigns, "AcquisitionCo");

      (v)   each Person executing this Agreement and listed as an Investor on
            the signature pages hereto (collectively with their Permitted
            Transferees, the "Investors");

      (v)   each Person executing this Agreement and listed as a Manager on the
            signature pages hereto and such other Persons, if any, that from
            time to time become party hereto as Managers (collectively, the
            "Managers");

      (vi)  each Person executing this Agreement and listed as a Manager
            Designee on the signature pages hereto and such other Persons, if
            any, that from time to time become party hereto as Manager Designees
            (collectively, the "Manager Designees"; and

      (vii) such other Persons, if any, that from time to time become party
            hereto as transferees of Shares pursuant to Section 3.2
            (collectively, together with the Investors, the Managers and the
            Manager Designees, the "Stockholders") in accordance with the terms
            hereof.

                                    RECITALS

      1.    The Company has been formed for the purpose of acquiring (the
"Acquisition"), indirectly through one or more subsidiaries, pursuant to a Stock
Purchase Agreement, dated as of March 12, 2004, as amended (the "Acquisition
Agreement"), between Electronic Data Systems Corporation, the Company and UGS
PLM Solutions Inc. ("OpCo"), all outstanding shares of OpCo.

      2.    Upon the Closing (as defined below), the Common Stock (as defined
below) of the Company, the common stock and the Preferred Stock (as defined
below) of Midco and all Options (as defined below) will be held as set forth on
Schedule I hereto.

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      3.    The parties believe that it is in the best interests of the Company,
Midco, Holdings, AcquisitionCo and the Stockholders to set forth their
agreements on certain matters.

                                    AGREEMENT

      Therefore, the parties hereto hereby agree as follows:

1.    EFFECTIVENESS; DEFINITIONS.

      1.1. Closing. This Agreement shall become effective upon the initial
purchase of Stock by the Investors in connection with the consummation of the
closing under the Acquisition Agreement (the "Closing").

      1.2. Definitions. Certain terms are used in this Agreement as specifically
defined herein. These definitions are set forth or referred to in Section 10
hereof.

2.    VOTING AGREEMENT.

      2.1. Significant Transactions. If a vote of holders of Shares (or any
class or series of Shares) is required under any applicable law or stock
exchange regulations in connection with a Change of Control transaction being
implemented pursuant to Section 4.2 or is deemed otherwise desirable by the
Requisite Stockholder Majority in connection with a transaction being
implemented pursuant to Section 4.2, each holder of Shares agrees to cast all
votes to which such holder is entitled in respect of the Shares, whether at any
annual or special meeting, by written consent or otherwise, in such manner as
the Requisite Stockholder Majority may instruct by written notice to approve any
sale, recapitalization, merger, consolidation, reorganization or any other
transaction or series of transactions involving the Company or its subsidiaries
(or all or any portion of their respective assets) in connection with, or in
furtherance of, the exercise by the Requisite Stockholder Majority of their
rights under Section 4.2. Each holder of Shares hereby grants to each member of
such Requisite Stockholder Majority an irrevocable proxy coupled with an
interest to vote, including in any action by written consent, such holder's
Shares in accordance with such holder's agreements contained in this Section
2.1, which proxy shall be valid and remain in effect until the provisions of
this Section 2.1 expire pursuant to Section 2.4.

      2.2. Consent to Amendment. Each holder of Company Shares agrees to cast
all votes to which such holder is entitled in respect of the Company Shares,
whether at any annual or special meeting, by written consent or otherwise, in
such manner as the Requisite Stockholder Majority may instruct by written notice
to increase the number of authorized shares of Class A-4 Common Stock to the
extent necessary to permit the Company to comply with the provisions of its
certificate of incorporation with respect to the conversion of shares of Class
A-1 Common Stock, Class A-2 Common Stock, Class A-3 Common Stock and Class L
Common Stock into shares of Class A-4 Common Stock. Each holder of Shares hereby
grants to each member of such Requisite Stockholder Majority an irrevocable
proxy coupled with an interest to vote, including in any action by written
consent, such holder's Shares in accordance with such holder's agreements
contained in this Section 2.2, which proxy shall be valid and remain in effect
until the provisions of this Section 2.2 expire pursuant to Section 2.4.

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      2.3. The Company and Midco. The Company and Midco will not to give effect
to any action by any holder of Shares or any other Person which is in
contravention of this Section 2.

      2.4. Period. Each of the foregoing provisions of this Section 2 shall
expire on the earlier of (a) a Change of Control, (b) the Initial Public
Offering and (c) with respect to any particular provision, the last date
permitted by applicable law (including the rules of the Commission and any
exchange upon which equity securities of the Company might be listed); provided,
that Section 2.1 shall expire no later than the expiration of Section 4.2
pursuant to the terms hereof.

3.    TRANSFER RESTRICTIONS.

            3.1. Transfers Allowed. Until the expiration of the provisions of
      this Section 3, no holder of Shares shall Transfer any of such holder's
      Shares to any other Person except as follows:

            3.1.1. Permitted Transferees. Subject to Section 3.3, but without
      regard to any other restrictions on transfer contained elsewhere in this
      Agreement, any holder of Shares may Transfer any or all of such Shares to
      such holder's Permitted Transferees, so long as such Permitted Transferees
      agree to be bound by the terms of this Agreement in accordance with
      Section 3.2 (if not already bound hereby).

            3.1.2. Distributions and Charitable Contributions. At or after the
      closing of the Initial Public Offering, any holder of Shares may Transfer
      any or all of such Shares (a) in a pro rata Transfer to its partners,
      members or stockholders or (b) to a Charitable Organization, in each case
      without regard to any other restrictions on transfer contained elsewhere
      in this Agreement (other than the provisions of Section 5, if applicable).
      Any Shares so Transferred shall conclusively be deemed thereafter not to
      be Shares under this Agreement.

            3.1.3. Public Transfers. Any holder of Shares may Transfer any or
      all of such Shares: (a) in a Public Offering or (b) after the closing of
      the Initial Public Offering, pursuant to Rule 144 or a block sale to a
      financial institution in the ordinary course of its trading business, in
      each case in compliance with Section 3.3, but without regard to any other
      restrictions on transfer contained elsewhere in this Agreement (other than
      the provisions of Section 5, if applicable). Shares Transferred pursuant
      to this Section 3.1.3 shall conclusively be deemed thereafter not to be
      Shares under this Agreement.

            3.1.4. Tag Along and Drag Along.

                  (a) Any holder of Shares may Transfer any or all of such
            Shares pursuant to Section 4.2, without regard to any other
            restrictions on transfer contained elsewhere in this Agreement
            (other than the provisions of Section 5, if applicable). Shares so
            Transferred shall conclusively be deemed thereafter not to be Shares
            under this Agreement.

                  (b) A Participating Seller may Transfer Shares pursuant to and
            in accordance with the provisions of Section 4.1 without regard to
            any other restrictions on transfer contained elsewhere in this
            Agreement (other than the

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            provisions of Section 5, if applicable) so long as each transferee
            agrees to be bound by the terms of this Agreement in accordance with
            Section 3.2 (if not already bound hereby).

            3.1.5. Other Private Transfers. In addition to any Transfers made in
      accordance with Sections 3.1.1, 3.1.2, 3.1.3 and 3.1.4, any holder of
      Shares may Transfer any or all of such Shares subject to compliance with
      all of the following conditions in respect of each Transfer:

                  (a) if such Transfer is during the Lock-up Period in respect
            of such Shares, with the consent of the Requisite Stockholder
            Majority;

                  (b) if such Transfer is after the Lock-up Period in respect of
            such Shares and before the closing of an Initial Public Offering, in
            compliance with Section 4.4;

                  (c) if such Transfer is before the closing of an Initial
            Public Offering, in compliance with Sections 3.2 and 4.1;

                  (d) in compliance with Section 3.3; and

                  (e) if applicable, in compliance with Section 5.

      Except as required by Section 3.1.5(c), any Shares so Transferred to a
      Person other than a Stockholder or a Permitted Transferee shall
      conclusively be deemed thereafter not to be Shares under this Agreement.

      3.2. Certain Transferees to Become Parties. Any transferee receiving
Shares in a Transfer pursuant to Section 3.1.1, 3.1.4(b) or 3.1.5(c) shall
become a Stockholder party to this Agreement and be subject to the terms and
conditions of, and be entitled to enforce, this Agreement to the same extent,
and in the same capacity, as the Stockholder that Transfers such Shares to such
transferee; provided, that only a Permitted Transferee of an Investor will be
deemed to be an "Investor" for purposes of this Agreement and a Permitted
Transferee of a Manager or a Manager Designee will be deemed to be a "Manager
Designee" for purposes of this Agreement. Prior to the initial Transfer of any
Shares to any transferee pursuant to Section 3.1.1, 3.1.4(b) or 3.1.5(c), and as
a condition thereto, each holder of Shares effecting such Transfer shall (i)
cause such transferee to deliver to the Company and each of the Investors (other
than the transferor) its written agreement, in form and substance reasonably
satisfactory to the Company, to be bound by the terms and conditions of this
Agreement to the extent described in the preceding sentence and (ii) if such
Transfer is to a Permitted Transferee, remain directly liable for the
performance by such Permitted Transferee of all obligations of such transferee
under this Agreement. To the extent a transferee is not an individual, a trust
or an estate, and the transferor or an Affiliate thereof shall cease to control
such transferee, (i) such change of control shall be deemed to be a Transfer of
the Shares held by such transferee subject to the Transfer restrictions
contained or referenced in this Section 3 and (ii) to the extent such transferee
then holds assets in addition to Shares, the determination of the purchase price
deemed to have been

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paid for the Shares held by such transferee in such deemed Transfer for purposes
of the provisions of Sections 3 and 4 shall be made by the Board in good faith.

      3.3. Restrictions on Transfers to Strategic Investors. In addition to any
other provision of this Agreement, no holder of Shares shall Transfer any Shares
pursuant to Sections 3.1.1, 3.1.3 or 3.1.5 of this Agreement to a Strategic
Investor without the approval of the Requisite Stockholder Majority. If any
Prospective Selling Stockholder proposes to Transfer any Shares pursuant to
Sections 3.1.1, 3.1.3 or 3.1.5 to any Prospective Buyer, the Prospective Selling
Stockholder shall furnish a written notice (which notice may be the same notice
as the Tag Along Notice, if any, delivered pursuant to Section 4.1 or the Sale
Notice, if any, delivered pursuant to Section 4.4, in each case so long as such
notice includes all of the information required by the next sentence) to the
Company and each other Investor at least ten business days prior to such
proposed Transfer. Such notice shall set forth the principal terms of the
proposed Transfer, including (i) the number and class of the Shares to be
Transferred, (ii) the per share purchase price or the formula by which such
price is to be determined and (iii) the name and address of the Prospective
Buyer. If the Prospective Buyer (or an Affiliate thereof) has previously been
determined by the Requisite Stockholder Majority to be a Strategic Investor, or
is presumed to be a Strategic Investor pursuant to the definition thereof, and
such determination or presumption has not been reversed by written notice to all
holders of Shares, the Prospective Selling Stockholder shall not Transfer any
Shares to such Prospective Buyer without the written approval of the Requisite
Stockholder Majority. If the Prospective Buyer (or an Affiliate thereof) has not
previously been determined by the Requisite Stockholder Majority to be a
Strategic Investor, or is not presumed to be a Strategic Investor pursuant to
the definition thereof, the Prospective Selling Stockholder may Transfer Shares
to such Prospective Buyer unless, within eight business days after the date of
delivery of the notice required by the second preceding sentence, the Requisite
Stockholder Majority delivers written notice to the Prospective Selling
Stockholder that such Prospective Buyer has been designated a Strategic
Investor. If, within such time period, a notice designating such Prospective
Buyer a Strategic Investor is delivered, then the Prospective Selling
Stockholder shall not Transfer any Shares to such Prospective Buyer. In the
event any proposed Transfer to a Strategic Investor is approved in accordance
with the foregoing, such approval shall also apply to Transfers made to such
Prospective Buyer by any Tag Along Sellers. Notwithstanding anything in this
Agreement to the contrary, the restrictions in this Section 3.3 shall not apply
to any Transfers (i) to the Company or any of its subsidiaries, (ii) to any
Investor, (iii) to any Affiliated Fund of any Investor, (iv) pursuant to Rule
144 effected as "brokers' transactions" (as defined in Rule 144); or (v)
pursuant to an underwritten Public Offering or, following the Initial Public
Offering, pursuant to Rule 144 directly to a "market maker" (as defined in Rule
144) or pursuant to a block sale to a financial institution in the ordinary
course of its trading business, in each case of this clause (v) in which, to the
knowledge of the Prospective Selling Stockholder (after reasonable due inquiry),
the underwriter(s), market maker(s) or block sale purchaser(s) are not acquiring
such Shares for the intended purpose of reselling such Shares to any Person
that, after giving effect to such resale, would own, directly or indirectly,
more than five percent (5%) of then outstanding shares of the applicable class
of Shares.

      3.4. Impermissible Transfer. Any attempted Transfer of Shares not
permitted under the terms of this Section 3 shall be null and void, and neither
the Company nor Midco shall in any way give effect to any such impermissible
Transfer.

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      3.5. Notice of Transfer. To the extent any Stockholder or Permitted
Transferee shall Transfer any Shares pursuant to Section 3.1.1 or 3.1.5, such
Stockholder or Permitted Transferee shall, within three business days following
consummation of such Transfer, deliver notice thereof to the Company and each
Investor.

      3.6. Other Restrictions on Transfer. The restrictions on Transfer
contained in this Agreement are in addition to any other restrictions on
Transfer to which a Stockholder may be subject, including, without limitation,
any restrictions on transfer contained in a restricted stock agreement, stock
option agreement or stock subscription agreement.

      3.7. Period. Each of the foregoing provisions of this Section 3 shall
expire upon a Change of Control.

4.    "TAG ALONG" AND "DRAG ALONG" RIGHTS AND RIGHT OF FIRST OFFER.

      4.1. Tag Along. Subject to prior compliance with Section 4.4, if
applicable, if any Prospective Selling Stockholder proposes to Sell any Shares
(other than Management Shares) to any Prospective Buyer(s) (including a First
Offer Purchaser pursuant to Section 4.4) prior to the Initial Public Offering in
a Transfer that is subject to Section 3.1.5:

            4.1.1. Notice. The Prospective Selling Stockholder shall, prior to
      any such proposed Transfer, furnish a written notice (the "Tag Along
      Notice") to each of the other holders of Shares (each, a "Tag Along
      Holder"). The Tag Along Notice shall include:

                  (a) the principal terms and conditions of the proposed Sale,
            including (i) the number and class of the Shares to be purchased
            from the Prospective Selling Stockholder, (ii) the fraction(s)
            expressed as a percentage, determined by dividing the number of
            Shares of each class to be purchased from the Prospective Selling
            Stockholder by the total number of Vested Shares of each such class
            held by the Prospective Selling Stockholder (for each class, the
            "Tag Along Sale Percentage") (it being understood that the Company
            shall reasonably cooperate with the Prospective Selling Stockholder
            in respect of the determination of each applicable Tag Along Sale
            Percentage), (iii) the per share purchase price or the formula by
            which such price is to be determined and the payment terms,
            including a description of any non-cash consideration sufficiently
            detailed to permit valuation thereof, (iv) the name and address of
            each Prospective Buyer and (v) the proposed Transfer date; and

                  (b) an invitation to each Tag Along Holder to make an offer to
            include in the proposed Sale to the applicable Prospective Buyer(s)
            Vested Shares of the same class(es) being sold by the Prospective
            Selling Stockholder held by such Tag Along Holder (not in any event
            to exceed the Tag Along Sale Percentage of the total number of
            Vested Shares of the applicable class held by such Tag Along
            Holder), on the same terms and conditions (subject to Section 4.3.4
            in the case of Options, Warrants and Convertible Securities and
            subject to Section 4.3.1 under all circumstances), with respect to
            each Share Sold, as the Prospective Selling

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            Stockholder shall Sell each of its Shares. For purposes of this
            Section 4.1, the Class A Common Stock will be treated as a single
            class and, subject to Section 4.3.4, all Options and Warrants will
            be treated as the same class of Shares for which they may be
            exercised.

            4.1.2. Exercise. Within five (ten, if the proposed Transfer is not
      also the subject of a currently effective Sale Notice under Section 4.4)
      business days after the date of delivery of the Tag Along Notice (such
      date the "Tag Along Deadline"), each Tag Along Holder desiring to make an
      offer to include Vested Shares in the proposed Sale (each a "Participating
      Seller" and, together with the Prospective Selling Stockholder,
      collectively, the "Tag Along Sellers") shall furnish a written notice (the
      "Tag Along Offer") to the Prospective Selling Stockholder indicating the
      number of Vested Shares which such Participating Seller desires to have
      included in the proposed Sale (subject to the limitation set forth in
      Section 4.1.1(b)). Each Tag Along Holder who does not make a Tag Along
      Offer in compliance with the above requirements, including the time
      period, shall be deemed to have waived all of such holder's rights with
      respect to such Sale, and the Tag Along Sellers shall thereafter be free
      to Sell to the Prospective Buyer, at a per share price no greater than the
      per share price set forth in the Tag Along Notice and on other principal
      terms and conditions which are not materially more favorable to the Tag
      Along Sellers than those set forth in the Tag Along Notice, without any
      further obligation to such non-accepting Tag Along Holder pursuant to this
      Section 4.1.

            4.1.3. Irrevocable Offer. The offer of each Participating Seller
      contained in such holder's Tag Along Offer shall be irrevocable, and, to
      the extent such offer is accepted, such Participating Seller shall be
      bound and obligated to Sell in the proposed Sale on the same terms and
      conditions, with respect to each Share Sold (subject to Section 4.3.4 in
      the case of Options, Warrants and Convertible Securities), as the
      Prospective Selling Stockholder, up to such number of Vested Shares as
      such Participating Seller shall have specified in such holder's Tag Along
      Offer; provided, however, that if the principal terms of the proposed Sale
      change with the result that the per share price shall be less than the per
      share price set forth in the Tag Along Notice or the other principal terms
      and conditions shall be materially less favorable to the Tag Along Sellers
      than those set forth in the Tag Along Notice, the Prospective Seller shall
      provide written notice thereof to each Participating Seller and each
      Participating Seller shall be permitted to withdraw the offer contained in
      such holder's Tag Along Offer by written notice to the Prospective Selling
      Stockholder and upon such withdrawal shall be released from such holder's
      obligations thereunder.

            4.1.4. Reduction of Shares Sold. The Prospective Selling Stockholder
      shall attempt to obtain the inclusion in the proposed Sale of the entire
      number of Vested Shares which each of the Tag Along Sellers requested to
      have included in the Sale (as evidenced in the case of the Prospective
      Selling Stockholder by the Tag Along Notice and in the case of each
      Participating Seller by such Participating Seller's Tag Along Offer). In
      the event the Prospective Selling Stockholder shall be unable to obtain
      the inclusion of such entire number of Vested Shares in the proposed Sale,
      the number of Vested Shares to be sold in the proposed Sale shall be
      allocated among the Tag Along Sellers in proportion, as nearly as
      practicable, as follows:

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                  (a) there shall be first allocated to each Tag Along Seller a
            number of Vested Shares equal to the lesser of (A) the number of
            Vested Shares offered (or proposed, in the case of the Prospective
            Selling Stockholder) to be included by such Tag Along Seller in the
            proposed Sale pursuant to this Section 4.1, and (B) a number of
            Vested Shares equal to such Tag Along Seller's Pro Rata Portion; and

                  (b) the balance, if any, not allocated pursuant to clause (a)
            above shall be allocated to the Prospective Selling Stockholder, or
            in such other manner as the Prospective Selling Stockholder may
            otherwise agree (it being understood that no Tag Along Seller will
            be obligated to sell more Vested Shares than it offered to sell in
            the proposed Sale).

            4.1.5. Additional Compliance. If prior to consummation, the terms of
      the proposed Sale shall change with the result that the per share price to
      be paid in such proposed Sale shall be greater than the per share price
      set forth in the Tag Along Notice or the other principal terms of such
      proposed Sale shall be materially more favorable to the Tag Along Sellers
      than those set forth in the Tag Along Notice, the Tag Along Notice shall
      be null and void, and it shall be necessary for a separate Tag Along
      Notice to be furnished, and the terms and provisions of this Section 4.1
      separately complied with, in order to consummate such proposed Sale
      pursuant to this Section 4.1; provided, however, that in the case of such
      a separate Tag Along Notice, the applicable period to which reference is
      made in Sections 4.1.1 and 4.1.2 shall be three business days and two
      business days, respectively. In addition, if the Prospective Selling
      Stockholders have not completed the proposed Sale by the end of the 180th
      day after the date of delivery of: (i) if the proposed Transfer is also
      the subject of a currently effective Sale Notice under Section 4.4, such
      Sale Notice, and (ii) otherwise, the Tag Along Notice, each Participating
      Seller shall be released from such holder's obligations under such
      holder's Tag Along Offer, the Tag Along Notice shall be null and void, and
      it shall be necessary for a separate Tag Along Notice to be furnished, and
      the terms and provisions of this Section 4.1 separately complied with, in
      order to consummate such proposed Sale pursuant to this Section 4.1,
      unless the failure to complete such proposed Sale resulted from any
      failure by any Participating Seller to comply with the terms of this
      Section 4.

      4.2. Drag Along. Each holder of Shares hereby agrees, if requested by the
Requisite Stockholder Majority at any time prior to an Initial Public Offering,
to Sell the same percentage (the "Drag Along Sale Percentage") of each class of
such Shares that is proposed to be sold by the Prospective Selling Stockholders
to a Prospective Buyer in a Change of Control, in the manner and on the terms
set forth in this Section 4.2; provided, however, that this Section 4.2 shall
not apply to a Change of Control if (i) such Prospective Buyer is a member of an
Investor Group or an Affiliate of any such member and (ii) such Change of
Control has not been approved by vote or written consent of the Principal
Investor Majority. For purposes of this Section 4.2, the Class A Common Stock
will be treated as a single class and, subject to Section 4.3.4, all Options and
Warrants will be the same class of Shares for which they may be exercised. All
Shares to be sold pursuant to this Section 4.2 shall be included in determining
whether or not a proposed transaction constitutes a Change of Control.

                                      -8-
<PAGE>

            4.2.1. Exercise. The Prospective Selling Stockholders shall furnish
      a written notice (the "Drag Along Notice") to each other holder of Shares
      at least ten business days prior to the consummation of the Change of
      Control transaction. The Drag Along Notice shall set forth the principal
      terms and conditions of the proposed Sale, including (i) the number and
      class of Shares to be acquired from the Prospective Selling Stockholders,
      (ii) the Drag Along Sale Percentage for each class, (iii) the per share
      consideration to be received in the proposed Sale for each class, (iv) the
      name and address of the Prospective Buyer and (v) if known, the proposed
      Transfer date. If the Prospective Selling Stockholders consummate the
      proposed Sale to which reference is made in the Drag Along Notice, each
      other holder of Shares (each, a "Participating Seller," and, together with
      the Prospective Selling Stockholders, collectively, the "Drag Along
      Sellers") shall: (i) be bound and obligated to Sell the Drag Along Sale
      Percentage of such holder's Shares of each class in the proposed Sale on
      the same terms and conditions, with respect to each Share Sold (subject to
      Section 4.3.4 in the case of Options, Warrants and Convertible Securities)
      as the Prospective Selling Stockholders shall Sell each Share in the Sale
      (subject to Section 4.3.4 in the case of Options, Warrants and Convertible
      Securities and subject to Section 4.3.1 under all circumstances); and (ii)
      except as provided in Section 4.3.1, shall receive the same form and
      amount of consideration per Share to be received by the Prospective
      Selling Stockholders for the corresponding class of Shares (on an as
      converted basis, if applicable). Except as provided in Section 4.3.1, if
      any holders of Shares of any class are given an option as to the form and
      amount of consideration to be received (other than with respect to any
      roll-over option given to any or all Management Holders), all holders of
      Shares of such class will be given the same option. Unless otherwise
      agreed by each Drag Along Seller, any non-cash consideration shall be
      allocated among the Drag Along Sellers pro rata based upon the aggregate
      amount of consideration to be received by such Drag Along Sellers. If at
      the end of the 180th day after the date of delivery of the Drag Along
      Notice the Prospective Selling Stockholders have not completed the
      proposed Sale, the Drag Along Notice shall be null and void, each
      Participating Seller shall be released from such holder's obligation under
      the Drag Along Notice and it shall be necessary for a separate Drag Along
      Notice to be furnished and the terms and provisions of this Section 4.2
      separately complied with, in order to consummate such proposed Sale
      pursuant to this Section 4.2. The right of a holder of Unvested Shares to
      receive consideration for such Unvested Shares pursuant to this Section
      4.2 shall be subject to the vesting and other terms of such Unvested
      Shares.

      4.3. Miscellaneous. The following provisions shall be applied to any
proposed Sale to which Sections 4.1, 4.2 or 4.4 applies:

            4.3.1. Certain Legal Requirements. In the event the consideration to
      be paid in exchange for Shares in a proposed Sale pursuant to Section 4.1
      or Section 4.2 includes any securities, and the receipt thereof by a
      Participating Seller would require under applicable law (a) the
      registration or qualification of such securities or of any Person as a
      broker or dealer or agent with respect to such securities where such
      registration or qualification is not otherwise required for the Sale by
      the Prospective Selling Stockholder(s) or (b) the provision to any Tag
      Along Seller or Drag Along Seller of any specified information regarding
      the Company or any of its subsidiaries, such securities

                                      -9-
<PAGE>

      or the issuer thereof that is not otherwise required to be provided for
      the Sale by the Prospective Selling Stockholder(s), then such
      Participating Seller shall not have the right to Sell Shares in such
      proposed Sale. In such event, the Prospective Selling Stockholder(s) shall
      (i) in the case of a Sale pursuant to Section 4.1, have the right, but not
      the obligation, and (ii) in the case of a Sale pursuant to Section 4.2,
      have the obligation to cause to be paid to such Participating Seller in
      lieu thereof, against surrender of the Shares (in accordance with Section
      4.3.6 hereof) which would have otherwise been Sold by such Participating
      Seller to the Prospective Buyer in the proposed Sale, an amount in cash
      equal to the Fair Market Value of such Shares as of the date such
      securities would have been issued in exchange for such Shares.

            4.3.2. Further Assurances. Each Participating Seller and First Offer
      Purchaser shall take or cause to be taken all such actions as may be
      necessary or reasonably desirable in order expeditiously to consummate
      each Sale pursuant to Section 4.1, Section 4.2 or Section 4.4 and any
      related transactions, including executing, acknowledging and delivering
      consents, assignments, waivers and other documents or instruments;
      furnishing information and copies of documents; filing applications,
      reports, returns, filings and other documents or instruments with
      governmental authorities; and otherwise cooperating with the Prospective
      Selling Stockholder(s) and the Prospective Buyer; provided, however, that
      Participating Sellers shall be obligated to become liable in respect of
      any representations, warranties, covenants, indemnities or otherwise to
      the Prospective Buyer solely to the extent provided in the immediately
      following sentence. Without limiting the generality of the foregoing, each
      Participating Seller agrees to execute and deliver such agreements as may
      be reasonably specified by the Prospective Selling Stockholder(s) to which
      such Prospective Selling Stockholder(s) will also be party, including
      agreements to (a) (i) make individual representations, warranties,
      covenants and other agreements as to the unencumbered title to its Shares
      and the power, authority and legal right to Transfer such Shares and the
      absence of any Adverse Claim with respect to such Shares and (ii) be
      liable as to such representations, warranties, covenants and other
      agreements, in each case to the same extent (on a pro rata basis) as the
      Prospective Selling Stockholder(s), and (b) in the case of a Sale pursuant
      to Sections 4.1 or 4.2, be liable (whether by purchase price adjustment,
      indemnity payments or otherwise) in respect of representations,
      warranties, covenants and agreements in respect of the Company and its
      subsidiaries; provided, however, that the aggregate amount of liability
      described in this clause (b) in connection with any Sale of Shares shall
      not exceed the lesser of (i) such Participating Seller's pro rata portion
      of any such liability, to be determined in accordance with such
      Participating Seller's portion of the aggregate proceeds to all
      Participating Sellers and Prospective Selling Stockholder(s) in connection
      with such Sale or (ii) the proceeds to such Participating Seller in
      connection with such Sale.

            4.3.3. Sale Process. The Requisite Stockholder Majority, in the case
      of a proposed Sale pursuant to Section 4.2, or the Prospective Selling
      Stockholder, in the case of a proposed Sale pursuant to Section 4.1 shall,
      in their sole discretion, decide whether or not to pursue, consummate,
      postpone or abandon any proposed Sale and the terms and conditions
      thereof. No holder of Shares nor any Affiliate of any such holder shall
      have any liability to any other holder of Shares or the Company arising
      from,

                                      -10-
<PAGE>

      relating to or in connection with the pursuit, consummation, postponement,
      abandonment or terms and conditions of any proposed Sale except to the
      extent such holder shall have failed to comply with the provisions of this
      Section 4.

            4.3.4. Treatment of Options, Warrants and Convertible Securities. If
      any Participating Seller shall Sell Options, Warrants or Convertible
      Securities in any Sale pursuant to Section 4, such Participating Seller
      shall receive in exchange for such Options, Warrants or Convertible
      Securities consideration in the amount (if greater than zero) equal to the
      purchase price received by the Prospective Selling Stockholder(s) in such
      Sale for the number of shares of each class of Stock that would be issued
      upon exercise, conversion or exchange of such Options, Warrants or
      Convertible Securities less the exercise price, if any, of such Options,
      Warrants or Convertible Securities (to the extent exercisable, convertible
      or exchangeable at the time of such Sale), subject to reduction for any
      tax or other amounts required to be withheld under applicable law.

            4.3.5. Expenses. All reasonable costs and expenses incurred by the
      Prospective Selling Stockholder(s) or the Company in connection with any
      proposed Sale pursuant to Section 4.2, Section 4.1 or Section 4.4 (whether
      or not consummated), including all attorneys fees and charges, all
      accounting fees and charges and all finders, brokerage or investment
      banking fees, charges or commissions, shall be paid by the Company. The
      reasonable fees and expenses of a single legal counsel for each Investor
      Group representing any or all of the Participating Sellers in connection
      with any proposed Sale pursuant to this Section 4 (whether or not
      consummated) shall be paid by the Company. Any other costs and expenses
      incurred by or on behalf of any or all of the Participating Sellers in
      connection with any proposed Sale pursuant to this Section 4 (whether or
      not consummated) shall be borne by such Participating Seller(s).

            4.3.6. Closing. The closing of a Sale to which Section 4.1, 4.2 or
      4.4 applies shall take place (i) on the proposed Transfer date, if any,
      specified in the Tag Along Notice, Drag Along Notice or Sale Notice, as
      applicable (provided that consummation of any Transfer may be extended
      beyond such date to the extent necessary to obtain any applicable
      governmental approval or other required approval or to satisfy other
      conditions), (ii) if no proposed Transfer date was required to be
      specified in the Drag Along Notice, at such time as the Prospective
      Selling Stockholders shall specify by notice to each Participating Seller
      and (iii) at such place as the Prospective Selling Stockholder(s) shall
      specify by notice to each Participating Seller in the case of a Sale to
      which Section 4.2 applies. At the closing of such Sale, each Participating
      Seller shall deliver the certificates evidencing the Shares to be Sold by
      such Participating Seller, duly endorsed, or with stock (or equivalent)
      powers duly endorsed, for transfer with signature guaranteed, free and
      clear of any liens or encumbrances, with any stock (or equivalent)
      transfer tax stamps affixed, against delivery of the applicable
      consideration.

      4.4. Right of First Offer. If any Prospective Selling Stockholder proposes
to Sell any Shares after the Lock-up Period in respect of such Shares and before
the closing of an Initial Public Offering in a Transfer (including to another
Stockholder or the Company or any of its subsidiaries) that is subject to
Section 3.1.5:

                                      -11-
<PAGE>

            4.4.1. Notice. The Prospective Selling Stockholder shall furnish a
      written notice of such proposed Sale (a "Sale Notice") to each other
      holder of Shares (each, a "First Offer Holder") prior to any such proposed
      Transfer. The Sale Notice shall include:

                  (a) (i) the number and class(es) of Shares proposed to be sold
            by the Prospective Selling Stockholder (the "Subject Shares"), (ii)
            the per share purchase price or the formula by which such price is
            to be determined and (iii) the proposed Transfer date, if known; and

                  (b) an invitation to each First Offer Holder to make an offer
            to purchase (subject to Section 4.4.6 below) any number of the
            Subject Shares at such price.

            4.4.2. Exercise.

                  (a) Within twenty business days after the date of delivery of
            the Sale Notice (the "First Offer Deadline"), each First Offer
            Holder may make an offer to purchase any number of the Subject
            Shares at the price set forth in the Sale Notice by furnishing a
            written notice (the "First Offer Notice") of such offer specifying a
            number of Subject Shares offered to be purchased from the
            Prospective Selling Stockholder (each such Person delivering such
            notice, a "First Offer Purchaser"). The receipt of consideration by
            any Prospective Selling Stockholder selling Shares in payment for
            the transfer of such Shares pursuant to this Section 4.4.2 shall be
            deemed a representation and warranty by such Prospective Selling
            Stockholder that: (i) such Prospective Selling Stockholder has full
            right, title and interest in and to such Shares; (ii) such
            Prospective Selling Stockholder has all necessary power and
            authority and has taken all necessary action to sell such Shares as
            contemplated by this Section 4.4.2; and (iii) such Shares are free
            and clear of any and all liens or encumbrances.

                  (b) Each Person not furnishing a First Offer Notice that
            complies with the above requirements, including the applicable time
            periods, shall be deemed to have waived all of such Person's rights
            to purchase such Shares under this Section 4.4.2 and the Prospective
            Selling Stockholder shall thereafter be free to Sell the Subject
            Shares to the First Offer Purchasers and/or any Prospective Buyer,
            at a per share purchase price no less than the price set forth in
            the Sale Notice, without any further obligation to such Person
            pursuant to this Section 4.4.

            4.4.3. Irrevocable Offer. The offer of each First Offer Purchaser
      contained in a First Offer Notice shall be irrevocable, and, subject to
      Section 4.4.6 below, to the extent such offer is accepted, such First
      Offer Purchaser shall be bound and obligated to purchase the number of
      Subject Shares set forth in such First Offer Purchaser's First Offer
      Notice.

            4.4.4. Acceptance of Offers. Within five business days after the
      First Offer Deadline, the Prospective Selling Stockholder shall inform
      each First Offer Purchaser, by written notice (the "Acceptance Notice"),
      of whether or not the Prospective Selling Stockholder will accept all (but
      not less than all) offers of the First Offer Purchasers. In

                                      -12-
<PAGE>

      the event the Prospective Selling Stockholder fails to furnish the
      Acceptance Notice within the specified time period, the Prospective
      Selling Stockholder shall be deemed to have decided not to Sell the
      Subject Shares to the First Offer Purchasers. If the Prospective Selling
      Stockholder decides not to Sell the Subject Shares to the First Offer
      Purchasers, each First Offer Purchaser shall be released from such
      holder's obligations under such holder's irrevocable offer. Acceptance of
      such offers by the Prospective Selling Stockholder is without prejudice to
      the Prospective Selling Stockholder's discretion under Section 4.3.3 to
      determine whether or not to consummate any Sale.

            4.4.5. Additional Compliance. If at the end of the 180th day after
      the date of delivery of the Sale Notice, the Prospective Selling
      Stockholder and First Offer Purchasers or Prospective Buyer (if not a
      First Offer Purchaser), if any, have not completed the Sale of the Subject
      Shares (other than due to the failure of any First Offer Purchaser to
      perform its obligations under this Section 4.4), each First Offer
      Purchaser shall be released from such holder's obligations under such
      holder's irrevocable offer, the Sale Notice shall be null and void, and it
      shall be necessary for a separate Sale Notice to be furnished, and the
      terms and provisions of this Section 4.4 separately complied with, in
      order to consummate a Transfer of such Subject Shares; provided, however,
      that in the case of such a separate Sale Notice in which the classes of
      Subject Shares and the per share price are unchanged and the number of
      Subject Shares is substantially the same, the applicable period to which
      reference is made in Section 4.4.1 and 4.4.2.1 shall be three business
      days and two business days, respectively.

            4.4.6. Determination of the Number of Subject Shares to be Sold.

                  (a) In the event that the number of Shares offered to be
            purchased by the First Offer Purchasers is less than the number of
            Subject Shares, (i) the Prospective Selling Stockholder may accept
            the offers of the First Offer Purchasers and, at the option of the
            Prospective Selling Stockholder, sell any remaining Subject Shares
            which the First Offer Purchasers did not elect to purchase to one or
            more Prospective Buyers at a price per share that is no less than
            the price set forth in the Sale Notice or (ii) if a single
            Prospective Buyer or group of Prospective Buyers is unwilling to
            purchase less than all of the Subject Shares, the Prospective
            Selling Stockholder may Sell all (but not less than all) of the
            Subject Shares to such Prospective Buyer or group of Prospective
            Buyers at a price per share that is no less than the price set forth
            in the Sale Notice rather than Sell the Subject Shares to the First
            Offer Purchasers. Such sales, if any, to Prospective Buyer(s) other
            than the First Offer Purchasers in accordance with clause (a) above
            shall be consummated together with the sale to the First Offer
            Purchasers.

                  (b) In the event that the Prospective Selling Stockholder has
            accepted the offers of the First Offer Purchasers and the aggregate
            number of Subject Shares offered to be purchased by (and to be sold
            to) the First Offer Purchasers is equal to or exceeds the aggregate
            number of Subject Shares, the Subject Shares shall be sold to the
            First Offer Purchasers as follows:

                                      -13-
<PAGE>

                        (i) there shall be first allocated to each First Offer
                  Purchaser a number of Shares of each applicable class equal to
                  the lesser of (A) the number of Shares of such class offered
                  to be purchased by such First Offer Purchaser pursuant such
                  holder's First Offer Notice, and (B) a number of Shares of
                  such class equal to such First Offer Purchaser's Pro Rata
                  Portion; and

                        (ii) the balance, if any, not allocated pursuant to
                  clause (i) above shall be allocated to those First Offer
                  Purchasers which offered to purchase a number of Shares of the
                  applicable class in excess of such Person's Pro Rata Portion
                  pro rata to each such First Offer Purchaser based upon the
                  amount of such excess, or in such other manner as the First
                  Offer Purchasers may otherwise agree.

      In the event any holders of Shares exercise such holders' rights under
Section 4.1 to sell Shares in connection with a Sale to First Offer Purchasers
pursuant to this Section 4.4, such Shares (as the case may be, reduced in
accordance with Section 4.1.5) shall be deemed to be Subject Shares for purposes
of this Section 4.4 and shall be allocated among the First Offer Purchasers in
accordance with this Section 4.4.6.

      4.5. Period. The provisions of Section 4 shall expire as to any Share on
the earlier of (a) a Change of Control or (b) the Initial Public Offering.

5.    HOLDER LOCK-UP.

      In connection with each underwritten Public Offering each Stockholder
hereby agrees to be bound by and, if requested, to execute and deliver such
lock-up agreement with the underwriter(s) of such Public Offering restricting
such Stockholder's right to (a) Transfer, directly or indirectly, any shares of
Common Stock or any securities convertible into or exercisable or exchangeable
for such Common Stock or (b) enter into any swap or other arrangement that
transfers to another any of the economic consequences of ownership of Common
Stock, in each case to the extent that such restrictions are agreed to by a
majority of the Investor Groups with the underwriter(s) of such Public Offering
(the "Principal Lock-Up Agreement"); provided, however, that no Stockholder
shall be required by this Section 5 to be bound by a lock-up agreement covering
a period of greater than 90 days (180 days in the case of the Initial Public
Offering) following the effectiveness of the related registration statement;
provided, further, that after the closing of the Initial Public Offering, and so
long as there is no more than one Investor Group, no Stockholder shall be
required by this Section 5 to be bound by a lock-up agreement unless Investors
holding a majority of Shares held by all Investors agree to be bound by such
lock-up agreement. Notwithstanding the foregoing, such lock-up agreement shall
not apply to (i) transactions relating to shares of Common Stock or other
securities acquired in (a) open market transactions or block purchases after the
completion of the Initial Public Offering or (b) a Public Offering, (ii)
Transfers to Permitted Transferees of such Stockholder in accordance with the
terms of this Agreement, (iii) conversions of shares of Stock into other classes
of Stock without change of holder and (iv) during the period preceding the
execution of the underwriting agreement, Transfers to a Charitable Organization
in accordance with the terms of this Agreement.

                                      -14-
<PAGE>

6.    CALL OPTION.

      6.1. Call Option.

            6.1.1. Call Option Upon Termination. Upon the termination of
      employment by the Company and any of its subsidiaries of any Manager, the
      Company and the Investor Groups shall have the right to purchase all or
      any portion of the Management Shares that are owned by such Manager or
      associated with such Manager, regardless of who then owns such Shares. For
      this purpose, (i) all Management Shares that are Transferred by the holder
      thereof to a Permitted Transferee of such holder shall continue to be
      associated with the Manager with whom they were associated prior to such
      Transfer and (ii) all Management Shares that are issued directly to a
      Manager Designee will be associated with the Manager that requested that
      such Management Shares be issued to such Manager Designee. The purchase
      price per Share for each such Share that is a Vested Roll-Over Share or
      Vested Incentive Share (determined as of the date of termination) shall be
      equal to Fair Market Value of such Share. The purchase price per Share for
      each such Share that is an Unvested Roll-Over Share or Unvested Incentive
      Share (determined as of the date of termination) shall be equal to the
      lower of Cost or Fair Market Value of such Share.

            6.1.2. Payment. Subject to the provisions of 6.2, in each case
      Shares are purchased pursuant to Section 6.1, the Company may pay for such
      Shares in its sole discretion (x) in cash or (y) by the issuance of a
      promissory note in a principal amount equal to the purchase price for such
      Shares. Interest will accrue at the mid-term applicable federal rate on
      the principal of such note, and, subject to 6.2, such note will be due and
      payable in four equal annual installments payable on, the first, second,
      third and fourth anniversaries of the termination of employment of such
      Manager with the Company and any of its subsidiaries.

            6.2. Cash Payments. To the extent that (i)(a) any payment of cash
      required under the terms of Section 6.1 or any payment on a promissory
      note issued under this Section 6 or (b) a distribution to the Company from
      any of its subsidiaries in an amount equal to the amount of cash required
      to be paid under the terms of Section 6 or the amount of any payment on a
      promissory note issued under Section 6 would, in any event, constitute,
      result in or give rise to a breach or violation of, or any default or
      right or cause of action under any agreement of the Company or any of its
      subsidiaries in respect of indebtedness for borrowed money, or (ii) the
      Board in good faith determines that it is in the Company's interest to
      issue a promissory note in lieu of making such cash payment then,

                  (a) in the case of a cash payment to be made at the closing of
            the purchase of Shares under Section 6.1, the Company will instead
            issue a promissory note in the principal amount of such cash
            payment. Interest will accrue on the principal of such note at a
            rate equal to the mid-term applicable federal rate on the date of
            issuance of such note and the principal of such note, together with
            the interest thereon, will become due and payable from time to time
            to the extent that (i) the payment thereof, and a distribution to
            the Company by any of its subsidiaries to

                                      -15-
<PAGE>

            provide funds for the payment thereof, can be made without violating
            any such agreement and (ii) the Board in good faith determines that
            it is in the Company's interest to make such payment; and

                  (b) in the case of a cash payment in respect of a promissory
            note issued under this Section 6, notwithstanding any of the
            provisions of such note (including without limitation the stated due
            date on which principal or interest payments are due) except the
            Final Maturity Date (as defined below) of such note, such payment
            will not become due and payable until (i) such time as the payment
            thereof, and a distribution to the Company by any of its
            subsidiaries to provide funds for the payment thereof, can be made
            without violating any such agreement and (ii) the Board in good
            faith determines that it is in the Company's interest to make such
            payment.

      6.3. Prepayments. Any promissory note issued under this Section 6 may be
prepaid in whole or in part at any time and from time to time without premium or
penalty.

      6.4. Final Maturity Date. The "Final Maturity Date" of each promissory
note issued under this Section 6.1 shall be the fifth anniversary of the date of
issuance.

      6.5. Notices, etc. Any right described in this Section 6 may be exercised
by delivery of written notice thereof (the "Option Notice") from the Company to
the relevant Manager or Manager Designee or such Person's estate after the date
of the termination of such Manager's employment. The Option Notice shall state
that the Company has elected to exercise such right, and the number of Shares
with respect to which the right is being exercised.

      6.6. Closing. The closing of any purchase and sale of Shares pursuant to
the exercise of any right granted pursuant to this Section 6 shall take place as
soon as reasonably practicable and in no event later than 30 days after the
election by the Company to repurchase such Shares at the principal office of the
Company, or at such other time and location as the parties to such purchase may
mutually determine. In the event the price of any Shares to be purchased is
specified to be Fair Market Value, such Fair Market Value shall be determined as
of the date on which such Manager's employment is terminated if the Company
elects to repurchase such Shares within 180 days after the termination of such
Manager's employment and, thereafter, Fair Market Value shall be determined as
of the date the Company elects to purchase such Shares. At the closing of any
purchase and sale of Shares pursuant this Section 6, the Company shall pay to
the holder of such Shares the purchase price therefor by certified or bank check
or wire transfer of immediately available federal funds and/or delivery to such
holder of a note, as may be applicable, pursuant to this Section 6. The receipt
of consideration by any Person selling Shares in payment for the transfer of
such Shares pursuant to this Section 6 shall be deemed a representation and
warranty by such Person that: (i) such Person has full right, title and interest
in and to such Shares; (ii) such Person has all necessary power and authority
and has taken all necessary action to sell such Shares as contemplated by this
Section 6; and (iii) such Shares are free and clear of any and all liens or
encumbrances.

      6.7. Investor Group Call Option. If the Company shall elect not to
purchase pursuant to 6.1 any or all Management Shares that are associated with a
Manager whose employment has

                                      -16-
<PAGE>

terminated or owned by such Manager, the Company shall notify each Investor
Group and each Investor Group may purchase its pro rata portion of the remaining
Shares for the purchase price identified in Section 6.1. In the event any
Investor Group agrees to forego its full pro rata share of any Management Shares
that are associated with a Manager whose employment has terminated or owned by
such Manager, the remainder shall be re-allocated pro rata among the other
Investor Groups (unless the Investor Groups otherwise agree); provided, that the
participating Investor Groups shall deliver an Option Notice stating that the
relevant Investor Groups have elected to exercise such right and the number of
Shares with respect to which the right is being exercised; provided, further,
that each participating Investor Group will pay for its portion of such
remaining Shares in cash at a closing as the parties may mutually determine and
otherwise in accordance with Section 6.6.

      6.8. Period. This Section 6 shall terminate with respect to any Share on
the later of (a) the closing of an Initial Public Offering or (b) the date such
Share becomes a Vested Share.

7.    REMEDIES.

      7.1. Generally. The parties shall have all remedies available at law, in
equity or otherwise in the event of any breach or violation of this Agreement or
any default hereunder. The parties acknowledge and agree that in the event of
any breach of this Agreement, in addition to any other remedies which may be
available, each of the parties hereto shall be entitled to specific performance
of the obligations of the other parties hereto and, in addition, to such other
equitable remedies (including preliminary or temporary relief) as may be
appropriate in the circumstances.

      7.2. Deposit. Without limiting the generality of Section 7.1, if any
holder of Shares fails to deliver to the purchaser thereof the certificate or
certificates evidencing Shares to be Sold pursuant to Section 4 or Section 6,
such purchaser may, at its option, in addition to all other remedies it may
have, deposit the purchase price for such Shares with any national bank or trust
company having combined capital, surplus and undivided profits in excess of One
Hundred Million Dollars ($100,000,000) (the "Escrow Agent") and the Company or
Midco, as the case may be, shall cancel on its books the certificate or
certificates representing such Shares and thereupon all of such holder's rights
in and to such Shares shall terminate. Thereafter, upon delivery to such
purchaser by such holder of the certificate or certificates evidencing such
Shares (duly endorsed, or with stock powers duly endorsed, for transfer, with
signature guaranteed, free and clear of any liens or encumbrances, and with any
transfer tax stamps affixed), such purchaser shall instruct the Escrow Agent to
deliver the purchase price (without any interest from the date of the closing to
the date of such delivery, any such interest to accrue to such purchaser) to
such holder.

8.    LEGENDS.

      8.1. Restrictive Legend. Each certificate representing Shares shall have
the following legend endorsed conspicuously thereupon:

            "THE VOTING OF THE SHARES OF STOCK
            REPRESENTED BY THIS CERTIFICATE, AND THE

                                      -17-
<PAGE>

            SALE, ENCUMBRANCE OR OTHER DISPOSITION
            THEREOF, ARE SUBJECT TO THE PROVISIONS OF A
            STOCKHOLDERS AGREEMENT TO WHICH THE
            ISSUER AND CERTAIN OF ITS STOCKHOLDERS ARE
            PARTY, A COPY OF WHICH MAY BE INSPECTED AT
            THE PRINCIPAL OFFICE OF THE ISSUER OR
            OBTAINED FROM THE ISSUER WITHOUT CHARGE."

           Any Person who acquires Shares which are not subject to all or part
of the terms of this Agreement shall have the right to have such legend (or the
applicable portion thereof) removed from certificates representing such Shares.

8.2. 1933 Act Legends. Each certificate representing Shares shall have the
following legend endorsed conspicuously thereupon:

            "THE SECURITIES REPRESENTED BY THIS
            CERTIFICATE WERE ISSUED IN A PRIVATE
            PLACEMENT, WITHOUT REGISTRATION UNDER THE
            SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"),
            AND MAY NOT BE SOLD, ASSIGNED, PLEDGED OR
            OTHERWISE TRANSFERRED IN THE ABSENCE OF AN
            EFFECTIVE REGISTRATION UNDER THE ACT
            COVERING THE TRANSFER OR AN OPINION OF
            COUNSEL, SATISFACTORY TO THE ISSUER, THAT
            REGISTRATION UNDER THE ACT IS NOT REQUIRED"

      8.3. Stop Transfer Instruction. The Company or Midco will instruct any
transfer agent not to register the Transfer of any Shares until the conditions
specified in the foregoing legends and this Agreement are satisfied.

      8.4. Termination of 1933 Act Legend. The requirement imposed by Section
8.2 hereof shall cease and terminate as to any particular Shares (a) when, in
the opinion of counsel reasonably acceptable to the Company, such legend is no
longer required in order to assure compliance by the Company and Midco with the
Securities Act or (b) when such Shares have been effectively registered under
the Securities Act or transferred pursuant to Rule 144. Wherever (x) such
requirement shall cease and terminate as to any Shares or (y) such Shares shall
be transferable under paragraph (k) of Rule 144, the holder thereof shall be
entitled to receive from the Company or Midco, as the case may be, without
expense, new certificates not bearing the legend set forth in Section 8.2
hereof.

9.    AMENDMENT, TERMINATION, ETC.

      9.1. Oral Modifications. This Agreement may not be orally amended,
modified, extended or terminated, nor shall any oral waiver of any of its terms
be effective.

      9.2. Written Modifications. This Agreement may be amended, modified,
extended or terminated, and the provisions hereof may be waived, only by an
agreement in writing signed by the Company, Midco and the Requisite Stockholder
Majority; provided, however, that the

                                      -18-
<PAGE>

consent of a majority in interest of the Management Shares shall be required for
any amendment, modification, extension, termination or waiver (an "Amendment")
that discriminates against the rights of the holders of Management Shares as
such under this Agreement (provided, that it is understood and agreed that, for
the purposes of interpreting and enforcing this amendment and waiver provision,
Amendments that affect all Stockholders will not be deemed to "discriminate
against" the holders of Management Shares as such simply because holders of
Management Shares (i) own or hold more or less Shares than any other
Stockholders, (ii) invested more or less money in the Company than any other
Stockholders or (iii) have greater or lesser voting rights or powers than any
other Stockholders).

Each such Amendment shall be binding upon each party hereto and each holder of
Shares subject hereto. In addition, each party hereto and each holder of Shares
subject hereto may waive any right hereunder by an instrument in writing signed
by such party or holder. To the extent the Amendment of any Section of this
Agreement would require a specific consent pursuant this Section 9.2, any
Amendment to the definitions used in such Section shall also require the
specified consent.

      9.3. Withdrawal from Agreement. At any time following the Initial Public
Offering, any holder of Vested Shares that, together with its Affiliates, holds
less than five percent (5%) of the then outstanding shares of Common Stock may
elect (on behalf of itself and all of its Affiliates that hold Shares), by
written notice to the Company and the Investors, to (i) withdraw all Vested
Shares held by such holder and all of its Affiliates from this Agreement (shares
withdrawn pursuant to this clause (i) and clause (i) of the proviso below,
collectively, the "Withdrawn Shares") and (ii) terminate this Agreement with
respect to any of such holder and its Affiliates that do not own any Unvested
Shares (holders and Affiliates withdrawing pursuant to this clause (ii) and
clause (ii) of the proviso below, collectively, the "Withdrawing Holders");
provided, that the Designated Investor(s) designated by an Investor Group may
elect, by written notice to the Company and the Investors, to (i) withdraw
Vested Shares in an amount equal to no more than $7 million in Purchase Price
Value from this Agreement and (ii) terminate this Agreement with respect to any
such Designated Investor that does not own any other Shares. From the date of
delivery of such withdrawal notice, the Withdrawn Shares shall cease to be
Shares subject to this Agreement and, if applicable, the Withdrawing Holders
shall cease to be parties to this Agreement and shall no longer be subject to
the obligations of this Agreement or have rights under this Agreement; provided,
however, that such Withdrawing Holders, if they constitute an Investor Group,
shall comply with such Investor Group's obligations under Section 4.5.6 of the
Company's certificate of incorporation to cause the removal or resignation of
any directors designated by such Investor Group; provided, further, that the
Withdrawing Holders shall nonetheless be obligated under Section 5 with respect
to any Pending Underwritten Offering to the same extent that they would have
been obligated if they had not withdrawn; provided, further, that if the
Withdrawing Holders hold shares of Class A-1 Common Stock, Class A-2 Common
Stock or Class A-3 Common Stock, they shall be deemed to have elected to convert
all such Shares into Class A-4 Common Stock at the effective time of such
withdrawal.

      9.4. Effect of Termination. No termination under this Agreement (including
pursuant to Section 9.3) shall relieve any Person of liability for breach prior
to termination.

10.   DEFINITIONS. For purposes of this Agreement:

                                      -19-
<PAGE>

      10.1. Certain Matters of Construction. In addition to the definitions
referred to or set forth below in this Section 10:

            (a) The words "hereof', "herein", "hereunder" and words of similar
      import shall refer to this Agreement as a whole and not to any particular
      Section or provision of this Agreement, and reference to a particular
      Section of this Agreement shall include all subsections thereof;

            (b) The word "including" shall mean including, without limitation;

            (c) Definitions shall be equally applicable to both nouns and verbs
      and the singular and plural forms of the terms defined; and

            (d) The masculine, feminine and neuter genders shall each include
      the other.

      10.2. Definitions. The following terms shall have the following meanings:

      "Acceptance Notice" shall have the meaning set forth in Section 4.4.4.

      "Acquisition" shall have the meaning set forth in the Recitals.

      "AcquisitionCo" shall have the meaning set forth in the Preamble.

      "Acquisition Agreement" shall have the meaning set forth in the Recitals.

      "Adverse Claim" shall have the meaning set forth in Section 8-102 of the
applicable Uniform Commercial Code.

      "Affiliate" shall mean, with respect to any specified Person, (a) any
other Person which directly or indirectly through one or more intermediaries
controls, or is controlled by, or is under common control with, such specified
Person (for the purposes of this definition, "control" (including, with
correlative meanings, the terms "controlling," "controlled by" and "under common
control with"), as used with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise); provided, however, that neither the
Company nor any of its subsidiaries shall be deemed an Affiliate of any of the
Stockholders (and vice versa), (b) if such specified Person is an investment
fund, any other investment fund the primary investment advisor to which is the
primary investment advisor to such specified Person or an Affiliate thereof and
(c) if such specified Person is a natural Person, any Family Member of such
natural Person. Notwithstanding the foregoing, for all purposes of this
Agreement, Integral Capital Partners VI, L.P. and its Affiliates will be
considered Affiliates of Silver Lake Partners, L.P., Silver Lake Investors, L.P.
and Silver Lake Technology Investors, L.L.C. and their respective Affiliates.

      "Affiliated Fund" shall mean, with respect to any specified Person, an
investment fund that is an Affiliate of such Person or that is advised by the
same investment adviser as such Person or by an Affiliate of such investment
adviser.

                                      -20-
<PAGE>

      "Agreement" shall have the meaning set forth in the Preamble.

      "Amendment" shall have the meaning set forth in Section 9.2.

      "Bain Investors" shall mean, as of any date, Bain Capital Integral
Investors, LLC, Bain Capital VII Coinvestment Fund, LLC and BCIP TCV, LLC, and
their respective Permitted Transferees, in each case only if such Person is then
a Stockholder and holds any Shares.

      "Board" shall mean the board of directors of the Company.

      "business day" shall mean any day that is not a Saturday, a Sunday or
other day on which banks are required or authorized by law to be closed in the
City of New York.

      "Cause" shall mean, with respect to any Manager, the following events or
conditions, as determined by the Board in its reasonable judgment: (i) the
refusal or failure to perform (other than by reason of disability), or material
negligence in the performance of such employee's duties and responsibilities to
the Company or any of its Affiliates, or refusal or failure to follow or carry
out any reasonable direction of the Board, and the continuance of such refusal,
failure or negligence for a period of ten days after notice to such Manager;
(ii) the material breach by such Manager of any provision of any material
agreement between such employee and the Company or any of its Affiliates; (iii)
fraud, embezzlement, theft or other dishonesty by such Manager with respect to
the Company or any of its Affiliates; (iv) the conviction of, or a plea of nolo
contendere by, such Manager to any felony or any other crime involving
dishonesty or moral turpitude; and (v) any other conduct that involves a breach
of fiduciary obligation on the part of such Manager or otherwise could
reasonably be expected to have a material adverse effect upon the business,
interests or reputation of the Company or any of its Affiliates.

      "Change of Control" shall mean the occurrence of (a) any consolidation or
merger of the Company with or into any other corporation or other Person, or any
other corporate reorganization or transaction (including the acquisition of
capital stock of the Company), whether or not the Company is a party thereto, in
which the stockholders of the Company immediately prior to such consolidation,
merger, reorganization or transaction, own capital stock either (i) representing
directly, or indirectly through one or more entities, less than fifty percent
(50%) of the economic interests in or voting power of the Company or other
surviving entity immediately after such consolidation, merger, reorganization or
transaction or (ii) that does not directly, or indirectly through one or more
entities, have the power to elect a majority of the entire board of directors of
the Company or other surviving entity immediately after such consolidation,
merger, reorganization or transaction, (b) any transaction or series of related
transactions, whether or not the Company is a party thereto, after giving effect
to which in excess of fifty percent (50%) of the Company's voting power is owned
directly, or indirectly through one or more entities, by any Person and its
"affiliates" or "associates" (as such terms are defined in the rules adopted by
the Commission under the Exchange Act), other than the Investors and their
respective Affiliated Funds, excluding, in any case referred to in clause (a) or
(b) any Initial Public Offering or any bona fide primary or secondary public
offering following the occurrence of an Initial Public Offering; or (c) a sale,
lease or other disposition of all or substantially all of the assets of the
Company.

                                      -21-
<PAGE>

      "Charitable Organization" shall mean a charitable organization as
described by Section 501(c)(3) of the Internal Revenue Code of 1986, as in
effect from time to time.

      "Class A Stock" shall mean the Class A Common Stock, par value $.001 per
share, of the Company, which is comprised of Class A-1 Common Stock, Class A-2
Common Stock, Class A-3 Common Stock and Class A-4 Common Stock.

      "Class L Stock" shall mean the Class L Common Stock, par value $.001 per
share, of the Company.

      "Closing" shall have the meaning set forth in Section 1.1.

      "Commission" shall mean the Securities and Exchange Commission.

      "Common Stock" shall mean the common stock of the Company, including the
Class A Stock and the Class L Stock.

      "Company" shall have the meaning set forth in the Preamble.

      "Company Call Right" shall mean the right of the Company pursuant to
Section 6 to purchase all or any portion of the Management Shares of any Manager
upon termination of such Manager's employment.

      "Company Shares" shall mean Shares in respect of capital stock of the
Company.

      "Convertible Securities" shall mean any evidence of indebtedness, shares
of stock (other than Stock) or other securities (other than Options and
Warrants) which are directly or indirectly convertible into or exchangeable or
exercisable for shares of Stock.

      "Cost" shall mean with respect to any Management Shares, the purchase
price paid for such Management Shares by the original holder thereof less any
distributions received with respect to such Management Shares; provided, that
the Cost of (i) unvested shares of capital stock shall equal the purchase price
paid for such shares, if any, and (ii) unvested options shall equal zero; and
provided, further, that any unvested consideration included in the purchase
price for any Shares shall equal zero.

      "Designated Investor" shall mean any Investor in any Investor Group that
has been designated by such Investor Group as one of such Investor Group's
Designated Investors.

      "Drag Along Notice" shall have the meaning set forth in Section 4.2.1.

      "Drag Along Sale Percentage" shall have the meaning set forth in Section
4.2.

      "Drag Along Sellers" shall have the meaning set forth in Section 4.2.1.

      "Equivalent Shares" shall mean, at any date of determination, (a) as to
any outstanding shares of Stock, such number of shares of Stock and (b) as to
any outstanding Options, Warrants or Convertible Securities which constitute
Shares, the maximum number of shares of Stock for

                                      -22-
<PAGE>

which or into which such Options, Warrants or Convertible Securities may at the
time be exercised, converted or exchanged (or which will become exercisable,
convertible or exchangeable on or prior to, or by reason of, the transaction or
circumstance in connection with which the number of Equivalent Shares is to be
determined).

      "Escrow Agent" shall have the meaning set forth in Section 7.2.

      "Exchange Act" shall mean the Securities Exchange Act of 1934, as in
effect from time to time.

      "Fair Market Value" shall mean, as of any date, as to any Share, the
Board's good faith determination of the fair value of such Share as of the
applicable reference date.

      "Family Member" shall mean, with respect to any natural Person, (i) any
lineal descendant or ancestor or sibling (by birth or adoption) of such natural
Person, (ii) any spouse or former spouse of any of the foregoing, (iii) any
legal representative or estate of any of the foregoing, (iv) any trust
maintained for the benefit of the foregoing and (v) any corporation, private
charitable foundation or other organization controlled by the foregoing.

      "First Offer Deadline" shall have the meaning set forth in Section
4.4.2.1.

      "First Offer Holder" shall have the meaning set forth in Section 4.4.1.

      "First Offer Notice" shall have the meaning set forth in Section 4.4.2.1.

      "First Offer Purchaser" shall have the meaning set forth in Section
4.4.2.1.

      "Final Maturity Date" shall have the meaning set forth in Section 6.1.5.

      "Holdings" shall have the meaning set forth in the Preamble.

      "Incentive Shares" shall mean all shares of Stock and Options held by a
Manager or Manager Designee that are not Purchased and Roll-Over Shares,
treating such Options as a number of Incentive Shares equal to the maximum
number of shares of Stock for which such Options may at the time be exercised.

      "Initial Public Offering" shall mean the initial Public Offering
registered on Form S-1 (or any successor form under the Securities Act).

      "Investor Group" shall mean any one of (a) the Bain Investors,
collectively, (b) the Silver Lake Investors, collectively and (c) the Warburg
Pincus Investors, collectively. Where this Agreement provides for the vote,
consent or approval of any Investor Group, such vote, consent or approval shall
be determined by the Majority Bain Investors, the Majority Silver Lake Investors
or the Majority Warburg Pincus Investors, as the case may be, except as
otherwise specifically set forth herein; provided, however, that any such
Investor Group shall cease to be a Investor Group at such time after the
Closing, and at all times thereafter, as (i) such Investor Group ceases to hold
Shares representing a Total Combined Investment (as

                                      -23-
<PAGE>

defined in the Company's certificate of incorporation) of at least the Minimum
Total Combined Investment (as defined in the Company's certificate of
incorporation) or (ii) such Investor Group ceases to hold Shares representing a
Director Share Amount of at least the Minimum Director Share Amount (as defined
in the Company's certificate of incorporation); provided that no adjustment
pursuant to the Company's certificate of incorporation to the "Minimum Total
Combined Investment" or the "Minimum Director Share Amount" shall cause any
former Investor Group to again become an Investor Group.

      "Investors" shall have the meaning set forth in the Preamble.

      "Lock-Up Period" shall mean the period commencing from the effective date
hereof and continuing through the earlier to occur of (a) the five year
anniversary of the date of the Closing and (b) the closing of the Initial Public
Offering; provided, that the Lock-Up Period with respect to Shares held by
Managers will not terminate until the closing of the Initial Public Offering.

      "Majority Bain Investors" shall mean, as of any date, the holders of a
Majority in Interest of the Shares held by the Bain Investors.

      "Majority in Interest" shall mean, (a) with respect to a set of Shares of
a single class, a majority of such Shares and (b) with respect to a set of
Shares of more than one class, a majority in aggregate Purchase Price Value of
such Shares.

      "Majority Silver Lake Investors" shall mean, as of any date, the holders
of a Majority in Interest of the Shares held by the Silver Lake Investors.

      "Majority Warburg Pincus Investors" shall mean, as of any date, the
holders of a Majority in Interest of the Shares held by the Warburg Pincus
Investors.

      "Management Shares" shall mean all Shares held by a Manager or Manager
Designee, including (a) all Purchased and Roll-Over Shares and (b) all Incentive
Shares held by such Manager or Manager Designee. Any Management Shares that are
Transferred by the holder thereof to such holder's Permitted Transferees shall
remain Management Shares in the hands of such Permitted Transferee.

      "Managers" shall have the meaning set forth in the Preamble.

      "Midco" shall have the meaning set forth in the Preamble.

      "OpCo" shall have the meaning set forth in the Recitals.

      "Option Exercise Period" shall have the meaning set forth in Section
6.1.6.

      "Option Notice" shall have the meaning set forth in Section 6.1.6.

      "Options" shall mean any options to subscribe for, purchase or otherwise
directly acquire Stock, other than any such option held by the Company or Midco
or any right to purchase shares pursuant to this Agreement.

      "Participating Seller" shall have the meaning set forth in Section 4.1.2
and 4.2.1.

                                      -24-
<PAGE>

      "Pending Underwritten Offering" means, with respect to any Withdrawing
Holder withdrawing from this Agreement pursuant to Section 9.3, any underwritten
Public Offering for which a registration statement relating thereto is or has
been filed with the Commission either prior to, or not later than the sixtieth
day after, the effectiveness of such Withdrawing Holder's withdrawal from this
Agreement.

      "Permitted Transferee" shall mean, in respect of any Investor, any
Affiliated Fund of such Investor, and, in respect of any Manager or Manager
Designee, any Family Member of such Manager or Manager Designee, in each case to
the extent such Person agrees to be bound by the terms of this Agreement in
accordance with Section 3.2. In addition, any Stockholder shall be a Permitted
Transferee of the Permitted Transferees of itself.

      "Person" shall mean any individual, partnership, corporation, company,
association, trust, joint venture, limited liability company, unincorporated
organization, entity or division, or any government, governmental department or
agency or political subdivision thereof.

      "Preferred Stock" shall mean the 10% Cumulative Preferred Stock, par value
$.001 per share, of Midco.

      "Principal Investor Majority" shall mean, with respect to a transaction
between the Company or one of its subsidiaries on the one hand and an Investor
or one of its Affiliates on the other (a "Related Affiliate"), (i) a majority of
Investor Groups that are not and whose Affiliates are not a Related Affiliate,
or (ii) if there is no unaffiliated Investor Group, a majority vote of all Class
A-1 Common Stock, Class A-2 Common Stock and Class A-3 Common Stock (voting as a
single class) held by all Investors that are not and whose Affiliates are not a
Related Affiliate.

      "Principal Lock-Up Agreement" shall have the meaning set forth in Section
5.

      "Pro Rata Portion" shall mean:

                  (a) for purposes of Section 4.1.4, with respect to each Tag
            Along Seller, a number of Shares equal to the aggregate number of
            Shares that the Prospective Buyer is willing to purchase in the
            proposed Sale, multiplied by a fraction, the numerator of which is
            the aggregate number of Vested Shares of the applicable class held
            by such Tag Along Seller and the denominator of which is the
            aggregate number of Vested Shares of the applicable class held by
            all Tag Along Sellers; and

                  (b) for purposes of Section 4.4.6, with respect to each First
            Offer Purchaser, a number of Shares equal to the aggregate number of
            Subject Shares of the applicable class multiplied by a fraction, the
            numerator of which is the aggregate number of Shares of the
            applicable class held by such First Offer Purchaser and the
            denominator of which is the aggregate number of Shares of the
            applicable class held by all First Offer Purchasers.

      "Prospective Buyer" shall mean any Person, including the Company or any of
its subsidiaries, proposing to purchase or otherwise acquire shares from a
Prospective Selling Stockholder.

                                      -25-
<PAGE>

      "Prospective Selling Stockholder" shall mean:

                  (a) for purposes of Section 3.3, any Stockholder that proposes
            to Transfer any Shares to any Prospective Buyer;

                  (b) for purposes of Section 4.1, any Stockholder that proposes
            to Transfer any Shares to any Prospective Buyer, including a First
            Offer Purchaser pursuant to Section 4.4;

                  (c) for purposes of Section 4.2, any Stockholder forming part
            of the acting Requisite Stockholder Majority that has elected to
            exercise the drag along right provided by such Section; and

                  (d) for purposes of Section 4.4, any Stockholder that proposes
            to Transfer any Shares in a transaction that is subject to such
            Section.

      "Public Offering" shall mean a public offering and sale of Common Stock
for cash pursuant to an effective registration statement under the Securities
Act.

      "Purchase Price Value" shall mean: (a) $1.00, in the case of a share of
Class A Stock, (b) $81.00, in the case of a share of Class L Stock and (c)
$100.00, in the case of a share of Preferred Stock, in each case appropriately
adjusted for any stock split, stock dividend, combination, recapitalization or
the like involving such class.

      "Purchased and Roll-Over Shares" shall mean (a) all shares of Stock held
by a Manager or Manager Designee that were purchased by the original holder
thereof on or before the Closing Date or upon the exercise, conversion or
exchange of Options described in clause (b) hereof, (b) all Options for shares
of Stock held by a Manager, which were received by such Manager on the Closing
Date in connection with the roll-over of his or her deal bonus from OpCo,
treating such Options as a number of Purchased and Roll-Over Shares equal to the
maximum number of shares of Stock for which such Options may be exercised, and
(c) all Shares held by a Manager or Manager Designee that are designated as
Purchased and Roll-Over Shares by the Requisite Stockholder Majority.

      "Purchaser" shall have the meaning set forth in the Recitals.

      "Related Affiliate" shall have the meaning set forth in the definition of
Principal Investor Majority.

      "Requisite Stockholder Majority" shall mean at any time the approval of
(a) each of at least two Investor Groups if there is more than one Investor
Group, (b) a single Investor Group if there is only one Investor Group and (c)
otherwise, Investors holding a majority of the outstanding Class A Stock
constituting Shares then held by Investors party to this Agreement.

      "Rule 144" shall mean Rule 144 under the Securities Act (or any successor
Rule).

      "Sale" shall mean a Transfer for value and the terms "Sell" and "Sold"
shall have correlative meanings.

                                      -26-
<PAGE>

      "Sale Notice" shall have the meaning set forth in Section 4.4.1.

      "Securities Act" shall mean the Securities Act of 1933, as in effect from
time to time.

      "Shares" shall mean (a) all shares of Stock held by a Stockholder,
whenever issued, including all shares of Stock issued upon the exercise,
conversion or exchange of any Options, Warrants or Convertible Securities and
(b) all Options, Warrants and Convertible Securities held by a Stockholder
(treating such Options, Warrants and Convertible Securities as a number of
Shares equal to the number of Equivalent Shares represented by such Options,
Warrants and Convertible Securities for all purposes of this Agreement except as
otherwise specifically set forth herein). Notwithstanding the foregoing, Shares
shall include Management Shares for all purposes of this Agreement except with
respect to Section 4.4, for which Shares held by a Prospective Selling
Stockholder shall include all Management Shares and Shares held by other Persons
shall not include any Management Shares that are Incentive Shares.

      "Silver Lake Investors" shall mean, as of any date, Silver Lake Partners,
L.P., Silver Lake Investors, L.P., Silver Lake Technology Investors, L.L.C. and
Integral Capital Partners VI, L.P., and their respective Permitted Transferees,
in each case only if such Person is then a Stockholder and holds any Shares.

      "Stock" shall mean the Common Stock and the Preferred Stock.

      "Stockholders" shall have the meaning set forth in the Preamble.

      "Strategic Investor" shall mean, with respect to any proposed Transfer,
any (a) Person that is determined by the Requisite Stockholder Majority to be a
competitor of the Company or any of its subsidiaries in any material respect or
a potential strategic investor in the Company or any of its subsidiaries and (b)
any Affiliate of any such Person specified in clause (a). For purposes hereof,
without limiting the foregoing, any Person with, or whose Affiliate has,
substantial operations in the product lifecycle management industry shall be
presumed to be a Strategic Investor unless the Requisite Stockholder Majority
otherwise determine.

      "Subject Shares" shall have the meaning set forth in Section 4.4.

      "Tag Along Deadline" shall have the meaning set forth in Section 4.1.2.

      "Tag Along Holder" shall have the meaning set forth in Section 4.1.1.

      "Tag Along Notice" shall have the meaning set forth in Section 4.1.1.

      "Tag Along Offer" shall have the meaning set forth in Section 4.1.2.

      "Tag Along Sale Percentage" shall have the meaning set forth in Section
4.1.1.

      "Tag Along Sellers" shall have the meaning set forth in Section 4.1.2.

      "Total Investment" shall mean at any time, with respect to a set of
Shares, the aggregate Purchase Price Value of such Shares.

                                      -27-
<PAGE>

      "Transfer" shall mean any sale, pledge, assignment, encumbrance or other
transfer or disposition of any Shares to any other Person, whether directly,
indirectly, voluntarily, involuntarily, by operation of law, pursuant to
judicial process or otherwise.

      "Unvested Incentive Shares" shall mean, with respect to a Manager or
Manager Designee at any time, the Management Shares that are Incentive Shares
held by such Manager or Manager Designee which remain subject to vesting
requirements at such time.

      "Unvested Purchased and Roll-Over Shares" shall mean, with respect to a
Manager or Manager Designee at any time, the Management Shares that are
Purchased and Roll-Over Shares held by such Manager or Manager Designee which
remain subject to vesting requirements at such time.

      "Unvested Shares" shall mean, at any time, all Management Shares that are
Unvested Incentive Shares or Unvested Purchased and Roll-Over Shares at such
time.

      "Vested Incentive Shares" shall mean, with respect to a Manager or Manager
Designee at any time, the Management Shares that are Incentive Shares held by
such Manager or Manager Designee which are fully vested at such time.

      "Vested Purchased and Roll-Over Shares" shall mean, with respect to a
Manager or Manager Designee at any time, the Management Shares that are
Purchased and Roll-Over Shares held by such Manager or Manager Designee which
are fully vested at such time; provided, that upon any termination of employment
of the Manager associated with such Purchased and Roll-Over Shares by the
Company and its subsidiaries other than for Cause, all of the Purchased and
Roll-Over Shares associated with such Manager shall automatically vest in
accordance with the terms of any restricted stock agreement, award or plan that
governs such Purchased and Roll-Over Shares.

      "Vested Shares" shall mean, at any time, all Shares that (i) are not
Management Shares or (ii) are Management Shares that are Vested Incentive Shares
or Vested Purchased and Roll-Over Shares at such time.

      "Warburg Pincus Investors" shall mean, as of any date, Warburg Pincus
Private Equity VIII, L.P., Warburg Pincus Netherlands Private Equity VIII I,
C.V., Warburg Pincus Netherlands Private Equity VIII II, C.V., Warburg Pincus
Germany Private Equity VIII K.G., Warburg Pincus International Partners, L.P.,
Warburg Pincus Netherlands International Partners I, C.V., Warburg Pincus
Netherlands International Partners II, C.V. and Warburg Pincus Germany
International Partners, K.G. and their respective Permitted Transferees, in each
case only if such Person is then a Stockholder and holds any Shares.

      "Warrants" shall mean any warrants to subscribe for, purchase or otherwise
directly acquire Stock.

      "Withdrawing Holders" shall have the meaning set forth in Section 9.3.

      "Withdrawn Shares" shall have the meaning set forth in Section 9.3.

                                      -28-
<PAGE>

11.   MISCELLANEOUS.

      11.1. Authority: Effect. Each party hereto represents and warrants to and
agrees with each other party that the execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby have been duly
authorized on behalf of such party and do not violate any agreement or other
instrument applicable to such party or by which its assets are bound. This
Agreement does not, and shall not be construed to, give rise to the creation of
a partnership among any of the parties hereto, or to constitute any of such
parties members of a joint venture or other association. The Company and Midco
shall be jointly and severally liable for all obligations of each such party
pursuant to this Agreement.

      11.2. Notices. Any notices and other communications required or permitted
in this Agreement shall be effective if in writing and (a) delivered personally,
(b) sent by facsimile, or (c) sent by overnight courier, in each case, addressed
as follows:

      If to the Company, Midco, Holdings or OpCo, to it:

            c/o UGS Corp.
            13690 Riverport Drive
            Maryland Heights, Missouri  63043
            Facsimile: (314) 264-8913
            Attention: Anthony J. Affuso

      with copies to:

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

      If to a Bain Investor, to it:

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

      with copies to:

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

                                      -29-
<PAGE>

      If to a Silver Lake Investor, to it:

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

      with copies to:

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

      If to a Warburg Pincus Investor, to it:

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

      with copies to:

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

      If to a Stockholder, to it at the address set forth in the records of the
Company.

      Notice to the holder of record of any shares of capital stock shall be
deemed to be notice to the holder of such shares for all purposes hereof.

      Unless otherwise specified herein, such notices or other communications
shall be deemed effective (a) on the date received, if personally delivered, (b)
on the date received if delivered by facsimile on a business day, or if not
delivered on a business day, on the first business day thereafter and (b) two
business days after being sent by overnight courier. Each of the parties hereto
shall be entitled to specify a different address by giving notice as aforesaid
to each of the other parties hereto.

      11.3. Binding Effect, Etc. Except for restrictions on the Transfer of
Shares set forth in other written agreements, plans or documents and except for
other written agreements dated on or about the date of this Agreement, this
Agreement constitutes the entire agreement of the

                                      -30-
<PAGE>

parties with respect to its subject matter, supersedes all prior or
contemporaneous oral or written agreements or discussions with respect to such
subject matter, and shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, representatives, successors and
permitted assigns. Except as otherwise expressly provided herein, no Holder
party hereto may assign any of its respective rights or delegate any of its
respective obligations under this Agreement without the prior written consent of
the other parties hereto, and any attempted assignment or delegation in
violation of the foregoing shall be null and void.

      11.4. Descriptive Heading. The descriptive headings of this Agreement are
for convenience of reference only, are not to be considered a part hereof and
shall not be construed to define or limit any of the terms or provisions hereof.

      11.5. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one instrument.

      11.6. Severability. In the event that any provision hereof would, under
applicable law, be invalid or unenforceable in any respect, such provision shall
be construed by modifying or limiting it so as to be valid and enforceable to
the maximum extent compatible with, and possible under, applicable law. The
provisions hereof are severable, and in the event any provision hereof should be
held invalid or unenforceable in any respect, it shall not invalidate, render
unenforceable or otherwise affect any other provision hereof.

      11.7. No Recourse. Notwithstanding anything that may be expressed or
implied in this Agreement, the Company and each Stockholder covenant, agree and
acknowledge that no recourse under this Agreement or any documents or
instruments delivered in connection with this Agreement shall be had against any
current or future director, officer, employee, general or limited partner or
member of any Stockholder or of any Affiliate or assignee thereof, as such,
whether by the enforcement of any assessment or by any legal or equitable
proceeding, or by virtue of any statute, regulation or other applicable law, it
being expressly agreed and acknowledged that no personal liability whatsoever
shall attach to, be imposed on or otherwise be incurred by any current or future
officer, agent or employee of any Stockholder or any current or future member of
any Stockholder or any current or future director, officer, employee, partner or
member of any Stockholder or of any Affiliate or assignee thereof, as such, for
any obligation of any Stockholder under this Agreement or any documents or
instruments delivered in connection with this Agreement for any claim based on,
in respect of or by reason of such obligations or their creation.

      11.8. Aggregation of Shares. All Shares held by a Stockholder and its
Affiliates and Affiliated Funds shall be aggregated together for purposes of
determining the availability of any rights under Sections 4 and 6. Within any
Investor Group, the Stockholders may allocate the ability to exercise any rights
under this Agreement in any manner that such Investor Group (by a Majority in
Interest of the Shares held by such Investor Group) sees fit.

      11.9. Obligations of Company, Midco, Holdings and OpCo. Each of the
Company, Midco, Holdings and OpCo shall be jointly and severally liable for any
payment obligation of any of the Company, Midco, Holdings or OpCo pursuant to
this Agreement.

                                      -31-
<PAGE>

12.   GOVERNING LAW.

      12.1. Governing Law. This Agreement and all claims arising out of or based
upon this Agreement or relating to the subject matter hereof shall be governed
by and construed in accordance with the domestic substantive laws of the State
of Delaware without giving effect to any choice or conflict of laws provision or
rule that would cause the application of the domestic substantive laws of any
other jurisdiction.

      12.2. Consent to Jurisdiction. Each party to this Agreement, by its
execution hereof, (a) hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the State of Delaware for the purpose
of any action, claim, cause of action or suit (in contract, tort or otherwise),
inquiry, proceeding or investigation arising out of or based upon this Agreement
or relating to the subject matter hereof, (b) hereby waives to the extent not
prohibited by applicable law, and agrees not to assert, and agrees not to allow
any of its subsidiaries to assert, by way of motion, as a defense or otherwise,
in any such action, any claim that it is not subject personally to the
jurisdiction of the above-named courts, that its property is exempt or immune
from attachment or execution, that any such proceeding brought in one of the
above-named courts is improper, or that this Agreement or the subject matter
hereof or thereof may not be enforced in or by such court and (c) hereby agrees
not to commence or maintain any action, claim, cause of action or suit (in
contract, tort or otherwise), inquiry, proceeding or investigation arising out
of or based upon this Agreement or relating to the subject matter hereof or
thereof other than before one of the above-named courts nor to make any motion
or take any other action seeking or intending to cause the transfer or removal
of any such action, claim, cause of action or suit (in contract, tort or
otherwise), inquiry, proceeding or investigation to any court other than one of
the above-named courts whether on the grounds of inconvenient forum or
otherwise. Notwithstanding the foregoing, to the extent that any party hereto is
or becomes a party in any litigation in connection with which it may assert
indemnification rights set forth in this agreement, the court in which such
litigation is being heard shall be deemed to be included in clause (a) above.
Notwithstanding the foregoing, any party to this Agreement may commence and
maintain an action to enforce a judgment of any of the above-named courts in any
court of competent jurisdiction. Each party hereto hereby consents to service of
process in any such proceeding in any manner permitted by Delaware law, and
agrees that service of process by registered or certified mail, return receipt
requested, at its address specified pursuant to Section 11.2 hereof is
reasonably calculated to give actual notice.

      12.3. WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW
WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND COVENANTS THAT IT
WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO
TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF
ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR
INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER
HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS
CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING.
EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES
HERETO THAT THIS SECTION 12.3 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY
ARE

                                      -32-
<PAGE>

RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT. ANY PARTY HERETO MAY FILE
AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 12.3 WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL
BY JURY.

      12.4. Exercise of Rights and Remedies. No delay of or omission in the
exercise of any right, power or remedy accruing to any party as a result of any
breach or default by any other party under this Agreement shall impair any such
right, power or remedy, nor shall it be construed as a waiver of or acquiescence
in any such breach or default, or of any similar breach or default occurring
later; nor shall any such delay, omission nor waiver of any single breach or
default be deemed a waiver of any other breach or default occurring before or
after that waiver.

                            [Signature pages follow]

                                      -33-
<PAGE>

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

THE COMPANY:                          UGS CAPITAL CORP.

                                                        *
                                      ------------------------------------
                                      Douglas E. Barnett
                                      Executive Vice President

MIDCO:                                UGS CAPITAL CORP.  II

                                                        *
                                      ------------------------------------
                                      Douglas E. Barnett
                                      Executive Vice President

HOLDINGS:                             UGS HOLDINGS, INC.

                                                        *
                                      ------------------------------------
                                      Douglas E. Barnett
                                      Executive Vice President

ACQUISITIONCO:                        UGS CORP.

                                                        *
                                      ------------------------------------
                                      Douglas E. Barnett
                                      Executive Vice President

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

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

Stockholders Agreement

<PAGE>

THE INVESTORS:                    BAIN CAPITAL INTEGRAL INVESTORS, LLC
                                  By: Bain Capital Investors, LLC
                                      its administrative member

                                                        *
                                      -----------------------------------------
                                      Andrew Balson
                                      Managing Director

                                  BAIN CAPITAL VII COINVESTMENT FUND, LLC
                                  By: Bain Capital VII Coinvestment Fund, L.P.,
                                      its sole member
                                  By: Bain Capital Partners VII, L.P.,
                                      its general partner
                                  By: Bain Capital Investors, LLC,
                                      its general partner

                                                        *
                                      -----------------------------------------
                                      Andrew Balson
                                      Managing Director

                                  BCIP TCV, LLC
                                  By: Bain Capital Investors, LLC
                                      its administrative member

                                                        *
                                      -----------------------------------------
                                      Andrew Balson
                                      Managing Director

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

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

                                  -1-
<PAGE>

                                  SILVER LAKE PARTNERS, L.P.
                                  By: Silver Lake Technology Associates, L.L.C.
                                      its General Partner

                                                    *
                                      ________________________________________
                                      Kenneth Y. Hao
                                      Managing Director

                                  SILVER LAKE INVESTORS, L.P.
                                  By: Silver Lake Technology Associates, L.L.C.
                                      its General Partner

                                                    *
                                      ________________________________________
                                      Kenneth Y. Hao
                                      Managing Director

                                  SILVER LAKE TECHNOLOGY INVESTORS, L.L.C.
                                  By: Silver Lake Technology Management, L.L.C.
                                      its Manager

                                                    *
                                      ________________________________________
                                      Kenneth Y. Hao
                                      Managing Director

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

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

Stockholders Agreement

<PAGE>

                                  INTEGRAL CAPITAL PARTNERS VI, L.P.
                                  By: Integral Capital Management VI, LLC
                                      its General Partner

                                  By: /s/ Pamela K. Hagenah
                                      ---------------------------
                                      Pamela K. Hagenah
                                      Manager

Stockholders Agreement

<PAGE>

                                  WARBURG PINCUS PRIVATE EQUITY VIII, L.P.
                                  By: Warburg Pincus & Co.
                                      its General Partner

                                                        *
                                      ________________________________________
                                      Gregory F. Back
                                      Partner

                                  WARBURG PINCUS NETHERLANDS PRIVATE
                                  EQUITY VIII I, C.V.
                                  By: Warburg Pincus & Co.
                                      its General Partner

                                                        *
                                      ________________________________________
                                      Gregory F. Back
                                      Partner

                                  WARBURG PINCUS NETHERLANDS PRIVATE
                                  EQUITY VIII II, C.V.
                                  By: Warburg Pincus & Co.
                                      its General Partner

                                                        *
                                      ________________________________________
                                      Gregory F. Back
                                      Partner

                                  WARBURG PINCUS GERMANY PRIVATE
                                  EQUITY VIII K.G.
                                  By: Warburg Pincus & Co.
                                      its General Partner

                                                        *
                                      ________________________________________
                                      Gregory F. Back
                                      Partner

Stockholders Agreement

<PAGE>

                                  WARBURG PINCUS INTERNATIONAL
                                  PARTNERS, L.P.
                                  By: Warburg Pincus & Co.
                                      its General Partner

                                                        *
                                      ________________________________________
                                      Gregory F. Back
                                      Partner

                                  WARBURG PINCUS NETHERLANDS
                                  INTERNATIONAL PARTNERS I, C.V.
                                  By: Warburg Pincus & Co.
                                      its General Partner

                                                        *
                                      ________________________________________
                                      Gregory F. Back
                                      Partner

                                  WARBURG PINCUS NETHERLANDS
                                  INTERNATIONAL PARTNERS II, C.V.
                                  By: Warburg Pincus & Co.
                                      its General Partner

                                                        *
                                      ________________________________________
                                      Gregory F. Back
                                      Partner

                                  WARBURG PINCUS GERMANY INTERNATIONAL
                                  PARTNERS, K.G.
                                  By: Warburg Pincus & Co.
                                      its General Partner

                                                        *
                                      ________________________________________
                                      Gregory F. Back
                                      Partner

Stockholders Agreement

<PAGE>

* The signature appearing immediately below shall serve as a signature at each
place indicated with an "*" on the two pages above:

                                      /s/ Gregory F. Back
                                      -------------------------
                                      Gregory F. Back
                                      Partner

Stockholders Agreement

<PAGE>

THE MANAGERS:                     THE ANTHONY JAMES AFFUSO AND
                                  LORRAINE PERKINS AFFUSO
                                  REVOCABLE TRUST

                                  /s/ Anthony James Affuso
                                  ------------------------------
                                  Anthony James Affuso
                                  Co-Trustee

                                  /s/ Lorraine Perkins Affuso
                                  ------------------------------
                                  Lorraine Perkins Affuso
                                  Co-Trustee

Stockholders Agreement

<PAGE>

                                   SCHEDULE I
                               HOLDINGS OF SHARES

<TABLE>
<CAPTION>
                                    CLASS A COMMON  CLASS L COMMON                   CLASS A    LASS L    PREFERRED
STOCKHOLDER                              STOCK          STOCK       PREFERRED STOCK  OPTIONS   OPTIONS     OPTIONS
-----------                         --------------  --------------  ---------------  -------  ----------  ----------
<S>                                 <C>             <C>             <C>              <C>      <C>         <C>
Bain Capital Integral Investors,
 LLC                                21,372,116.03    2,355,682.49     529,100.05         -            -          -
Bain Capital VII Coinvestment
 Fund, LLC                           6,000,000.00      666,666.66     150,000.00         -            -          -
BCIP TCV, LLC                          147,884.00       35,428.62       8,899.94         -            -          -
Silver Lake Partners, L.P.          26,078,366.28    2,897,596.25     651,959.16         -            -          -
Silver Lake Investors, L.P.            733,819.35       81,535.48      18,345.49         -            -          -
Silver Lake Technology Investors,
 L.L.C.                                157,414.40       17,490.49       3,935.35         -            -          -
Integral Capital Partners VI, L.P.     550,400.00       61,155.55      13,759.99         -            -          -
Warburg Pincus Private Equity
 VIII, L.P.                         13,334,831.49    1,481,647.95     333,370.78         -            -          -
Warburg Pincus Netherlands
 Private Equity VIII I, C.V.           226,756.55       25,195.17       5,668.91         -            -          -
Warburg Pincus Netherlands
 Private Equity VIII II, C.V.          159,760.30       17,751.14       3,994.01         -            -          -
Warburg Pincus Germany Private
 Equity VIII K.G.                       38,651.68        4,294.63         966.29         -            -          -
Warburg Pincus International
 Partners, L.P.                     13,189,235.21    1,465,470.58     329,730.88         -            -          -
Warburg Pincus Netherlands
 International Partners I, C.V.        330,240.00       36,693.33       8,256.00         -            -          -
Warburg Pincus Netherlands
 International Partners II, C.V.       220,160.00       24,462.22       5,504.00         -            -          -
Warburg Pincus Germany
 International Partners, K.G.           20,364.80        2,262.75         509.12         -            -          -
Anthony J. Affuso                       76,000.00               -              -         -     8,444.44   1,900.00
Charles Grindstaff                      22,000.00               -              -         -     2,444.44     550.00
Steve Bashada                            9,044.00               -              -         -     1,004.89     226.10
Robert Nierman                          16,720.00               -              -         -     1,857.78     418.00
Hans-Kurt Luebberstedt                  18,400.00               -              -         -     2,044.44     460.00
James Duncan                             2,880.00               -              -         -       320.00      72.00
Tony L. Hemmelgarn                       4,000.00               -              -         -       444.44     100.00
Haruyoshi Iida (RSL)                     9,600.00               -              -         -     1,066.67     240.00
Daniel Malliet                           9,880.00               -              -         -     1,097.78     247.00
William A. Carrelli                        950.00               -              -         -       105.56      23.75
Rich Ramsey                              2,400.00               -              -         -       266.67      60.00
Donald Vogt                                950.00               -              -         -       105.56      23.75
</TABLE>

      Stockholders Agreement

<PAGE>

<TABLE>
<CAPTION>
                              CLASS A COMMON  CLASS L COMMON                   CLASS A    LASS L    PREFERRED
STOCKHOLDER                        STOCK          STOCK       PREFERRED STOCK  OPTIONS   OPTIONS     OPTIONS
-----------                   --------------  --------------  ---------------  -------  ----------  ----------
<S>                           <C>             <C>             <C>              <C>      <C>         <C>
Donald Vossler                     3,800.00               -               -       -        422.22        95.00
W. Michael White                   2,000.00               -               -       -        222.22        50.00
Thomas Lemberg                    12,000.00        1,333.33          300.00       -             -            -
Douglas E. Barnett                20,000.00        2,222.22          500.00       -             -            -

The Anthony James Affuso and
 Lorraine Perkins Affuso
 Revocable Trust                  12,000.00        1,333.33          300.00       -             -            -

TOTAL                         82,782,624.09    9,178,222.20    2,065,099.97       -     19,847.11     4,465.60
</TABLE>

Stockholders Agreement<PAGE>

                                                                   Exhibit 10.16

================================================================================

                 PARTICIPATION AND REGISTRATION RIGHTS AGREEMENT

                                      among

                                UGS Capital Corp.

                              UGS Capital Corp. II

                               UGS Holdings, Inc.

                                    UGS Corp.

                                       and

       Certain Stockholders of UGS Capital Corp. and UGS Capital Corp. II

                            Dated as of May 24, 2004

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                              <C>
1.    EFFECTIVENESS; DEFINITIONS.............................................................................     2
     1.1.     Closing........................................................................................     2
     1.2.     Definitions....................................................................................     2
2.    RIGHT OF PARTICIPATION.................................................................................     2
     2.1.     Right of Participation.........................................................................     2
              2.1.1.   Offer.................................................................................     2
              2.1.2.   Exercise..............................................................................     3
              2.1.3.   Other Securities......................................................................     4
              2.1.4.   Certain Legal Requirements............................................................     4
              2.1.5.   Further Assurances....................................................................     4
              2.1.6.   Expenses..............................................................................     5
              2.1.7.   Closing...............................................................................     5
     2.2.     Post-Issuance Notice...........................................................................     5
     2.3.     Excluded Transactions..........................................................................     6
     2.4.     Certain Provisions Applicable to Options, Warrants and Convertible Securities..................     6
     2.5.     Acquired Shares................................................................................     7
     2.6.     Period.........................................................................................     7
3.    REGISTRATION RIGHTS....................................................................................     7
     3.1.     Demand Registration Rights for Investor Registrable Securities.................................     7
              3.1.1.   General...............................................................................     7
              3.1.2.   Form..................................................................................     8
              3.1.3.   Payment of Expenses...................................................................     8
              3.1.4.   Additional Procedures.................................................................     8
              3.1.5.   Suspension of Registration............................................................     9
     3.2.     Piggyback Registration Rights..................................................................     9
              3.2.1.   Piggyback Registration................................................................     9
              3.2.2.   Payment of Expenses...................................................................    10
              3.2.3.   Additional Procedures.................................................................    10
              3.2.4.   Registration Statement Form...........................................................    11
     3.3.     Certain Other Provisions.......................................................................    11
              3.3.1.   Underwriter's Cutback.................................................................    11
              3.3.2.   Registration Procedures...............................................................    13
              3.3.3.   Selection of Underwriters and Counsel.................................................    16
              3.3.4.   Company Lock-Up.......................................................................    16
              3.3.5.   Holders and Other Holders Lock-Up.....................................................    16
              3.3.6.   Other Agreements......................................................................    17
     3.4.     Indemnification and Contribution...............................................................    17
              3.4.1.   Indemnities of the Company............................................................    17
              3.4.2.   Indemnities to the Company............................................................    18
              3.4.3.   Contribution..........................................................................    18
              3.4.4.   Limitation on Liability of Holders of Registrable Securities..........................    19
              3.4.5.   Indemnification Procedures............................................................    19
     3.5.     Permitted Registration Rights Assignees........................................................    20
              3.5.1.   Registration Rights...................................................................    20
</TABLE>

                                                                             -i-

<PAGE>

<TABLE>
<S>                                                                                                              <C>
4.    REMEDIES...............................................................................................    20
     4.1.     Generally......................................................................................    20
5.    PERMITTED TRANSFEREES..................................................................................    21
     5.1.     Transfers by Investors.........................................................................    21
     5.2.     Transfers by Managers or Manager Designees.....................................................    21
6.    AMENDMENT, TERMINATION, ETC............................................................................    21
     6.1.     Oral Modifications.............................................................................    21
     6.2.     Written Modifications..........................................................................    21
     6.3.     Withdrawal from Agreement......................................................................    22
     6.4.     Effect of Termination..........................................................................    22
7.    DEFINITIONS............................................................................................    22
     7.1.     Certain Matters of Construction................................................................    22
     7.2.     Definitions....................................................................................    23
8.    MISCELLANEOUS..........................................................................................    31
     8.1.     Authority:  Effect.............................................................................    31
     8.2.     Notices........................................................................................    31
     8.3.     Binding Effect, Etc............................................................................    33
     8.4.     Descriptive Heading............................................................................    33
     8.5.     Counterparts...................................................................................    33
     8.6.     Severability...................................................................................    33
     8.7.     No Recourse....................................................................................    34
     8.8.     Aggregation of Shares..........................................................................    34
     8.9.     Obligations of Company, Midco, Holdings and OpCo...............................................    34
9.    GOVERNING LAW..........................................................................................    34
     9.1.     Governing Law..................................................................................    34
     9.2.     Consent to Jurisdiction........................................................................    34
     9.3.     WAIVER OF JURY TRIAL...........................................................................    35
     9.4.     Exercise of Rights and Remedies................................................................    35
</TABLE>

                                                                            -ii-

<PAGE>

                 PARTICIPATION AND REGISTRATION RIGHTS AGREEMENT

     This Participation and Registration Rights Agreement (the "Agreement") is
made as of May 24, 2004 by and among:

     (i)    UGS Capital Corp., a Delaware corporation (formerly known as BSW
            Holdings, Inc.) (together with its successors and assigns, the
            "Company");

     (ii)   UGS Capital Corp. II, a Delaware corporation (together with its
            successors and assigns, "Midco");

     (iii)  UGS Holdings, Inc., a Delaware corporation (together with its
            successors and assigns, "Holdings");

     (iv)   UGS Corp., a Delaware corporation (together with its successors and
            assigns, "AcquisitionCo");

     (v)    each Person executing this Agreement and listed as an Investor on
            the signature pages hereto (collectively with their Permitted
            Transferees, the "Investors");

     (vi)   each Person executing this Agreement and listed as a Manager on the
            signature pages hereto and such other Persons, if any, that from
            time to time become party hereto as Managers (collectively, the
            "Managers");

     (vii)  each Person executing this Agreement and listed as a Manager
            Designee on the signature pages hereto and such other Persons, if
            any, that from time to time become party hereto as Manager Designees
            (collectively, the "Manager Designees" and together with the
            Investors and the Managers, the "Stockholders")

     (viii) such other Persons, if any, that from time to time become party
            hereto as holders of Other Holder Shares (as defined below) pursuant
            to Section 3.5 solely in the capacity of permitted assignees with
            respect to certain registration rights hereunder (collectively, the
            "Other Holders").

                                    RECITALS

     1.     The Company has been formed for the purpose of acquiring (the
"Acquisition"), indirectly through one or more subsidiaries, pursuant to a Stock
Purchase Agreement, dated as of March 12, 2004, as amended (the "Acquisition
Agreement"), between Electronic Data Systems Corporation, the Company and UGS
PLM Solutions Inc. ("OpCo"), all outstanding shares of UGS PLM Solutions Inc.

     2.     Upon the Closing (as defined below), the Common Stock (as defined
below) of the Company, the common stock and the Preferred Stock (as defined
below) of Midco and all Options (as defined below) will be held as set forth on
Schedule I hereto.

<PAGE>

      3.    In connection with the purchase of such securities, the Company,
Midco, Holdings, AcquisitionCo, the Investors and certain other Stockholders of
the Company and Midco have entered into a stockholders agreement dated as of the
date hereof (the "Stockholders Agreement").

      4.    The parties believe that it is in the best interests of the Company,
Midco, Holdings, AcquisitionCo and the Stockholders to set forth their
agreements regarding participation and registration rights.

                                    AGREEMENT

      Therefore, the parties hereto hereby agree as follows:

1.    EFFECTIVENESS; DEFINITIONS.

      1.1.  Closing. This Agreement shall become effective upon the initial
purchase of Stock by the Investors in connection with the consummation of the
closing under the Acquisition Agreement (the "Closing").

      1.2.  Definitions. Certain terms are used in this Agreement as
specifically defined herein. These definitions are set forth or referred to in
Section 7 hereof.

2.    RIGHT OF PARTICIPATION. Subject to Section 2.3, the Company shall not, and
shall not permit any direct or indirect subsidiary of the Company (the Company
and each such subsidiary, an "Issuer") to, issue or sell any shares of any of
its capital stock or any securities convertible into or exchangeable for any
shares of its capital stock, issue or grant any options or warrants for the
purchase of, or enter into any agreements providing for the issuance (contingent
or otherwise) of, any of its capital stock or any stock or securities
convertible into or exchangeable for any shares of its capital stock, in each
case, to any Person (each an "Issuance" of "Subject Securities"), except in
compliance with the provisions of Section 2.1 or Section 2.2.

      2.1.  Right of Participation.

            2.1.1. Offer. Not fewer than ten business days prior to the
      consummation of an Issuance, a notice (the "Participation Notice") shall
      be furnished by the Issuer to each holder of Participation Shares (the
      "Participation Offerees"). The Participation Notice shall include:

                   (a) the principal terms and conditions of the proposed
            Issuance, including (i) the amount, kind and terms of the Subject
            Securities to be included in the Issuance, (ii) the number of
            Equivalent Shares represented by such Subject Securities (if
            applicable), (iii) the percentage of the total Purchase Price Value
            of Shares outstanding as of immediately prior to giving effect to
            such Issuance which the Purchase Price Value of Participation Shares
            held by such Participation Offeree constitutes (the "Participation
            Portion"), (iv) the maximum and minimum price (including if
            applicable, the maximum and minimum Price Per Equivalent Share) per
            unit of the Subject Securities, including a description of any
            non-cash

                                                                             -2-

<PAGE>

            consideration sufficiently detailed to permit valuation thereof, (v)
            the proposed manner of disposition, (vi) the name and address of the
            Person to whom the Subject Securities will be issued (the
            "Prospective Subscriber") and (vii) if known, the proposed Issuance
            date; and

                   (b) an offer by the Issuer to issue, at the option of each
            Participation Offeree, to such Participation Offeree such portion of
            the Subject Securities to be included in the Issuance as may be
            requested by such Participation Offeree (not to exceed the
            Participation Portion of the total amount of Subject Securities to
            be included in the Issuance), on the same terms and conditions, with
            respect to each unit of Subject Securities issued to the
            Participation Offerees, as each of the Prospective Subscribers shall
            be issued units of Subject Securities.

            2.1.2. Exercise.

                   (a) General. Each Participation Offeree desiring to accept
            the offer contained in the Participation Notice shall accept such
            offer by furnishing a written notice of such acceptance to the
            Issuer within eight business days after the date of delivery of the
            Participation Notice specifying the amount of Subject Securities
            (not in any event to exceed the Participation Portion of the total
            amount of Subject Securities to be included in the Issuance) which
            such Participation Offeree desires to be issued (each a
            "Participating Buyer"). Each Participation Offeree who does not
            accept such offer in compliance with the above requirements,
            including the applicable time periods, shall be deemed to have
            waived all of such holder's rights to participate in such Issuance,
            and the Issuer shall thereafter be free to issue Subject Securities
            in such Issuance to the Prospective Subscriber and any Participating
            Buyers, at a price no less than the minimum price set forth in the
            Participation Notice and on other principal terms not substantially
            more favorable to the Prospective Subscriber than those set forth in
            the Participation Notice, without any further obligation to such
            non-accepting Participation Offerees pursuant to Section 2. If,
            prior to consummation, the terms of such proposed Issuance shall
            change with the result that the price shall be less than the minimum
            price set forth in the Participation Notice or the other principal
            terms shall be substantially more favorable to the Prospective
            Subscriber than those set forth in the Participation Notice, it
            shall be necessary for a separate Participation Notice to be
            furnished, and the terms and provisions of this Section 2.1
            separately complied with, in order to consummate such Issuance
            pursuant to this Section 2.1; provided, however, that in such case
            of a separate Participation Notice, the applicable period to which
            reference is made in Section 2.1.1 and in the first sentence of
            Section 2.1.2(a) shall be three business days and two business days
            respectively.

                   (b) Irrevocable Acceptance. The acceptance of each
            Participating Buyer shall be irrevocable except as hereinafter
            provided, and each such Participating Buyer shall be bound and
            obligated to acquire in the Issuance on the same terms and
            conditions, with respect to each unit of Subject Securities issued,
            as the

                                                                             -3-

<PAGE>

            Prospective Subscriber, such amount of Subject Securities as such
            Participating Buyer shall have specified in such Participating
            Buyer's written commitment.

                   (c) Time Limitation. If at the end of the 180th day after the
            date of the effectiveness of the Participation Notice the Issuer has
            not completed the Issuance, each Participating Buyer shall be
            released from such holder's obligations under the written
            commitment, the Participation Notice shall be null and void, and it
            shall be necessary for a separate Participation Notice to be
            furnished, and the terms and provisions of this Section 2.1
            separately complied with, in order to consummate such Issuance
            pursuant to this Section 2.1; provided, however, that in such case
            of a separate Participation Notice on substantially the same terms
            and conditions, the applicable period to which reference is made in
            Section 2.1.1 and in the first sentence of Section 2.1.2(a) shall be
            three business days and two business days, respectively.

            2.1.3. Other Securities. The Issuer may condition the participation
      of the Participation Offerees in an Issuance upon the purchase by such
      Participation Offerees of any securities (including debt securities) other
      than Subject Securities ("Other Securities") in the event that the
      participation of the Prospective Subscriber in such Issuance is so
      conditioned. In such case, each Participating Buyer shall acquire in the
      Issuance, together with the Subject Securities to be acquired by it, Other
      Securities in the same proportion to the Subject Securities to be acquired
      by it as the proportion of Other Securities to Subject Securities being
      acquired by the Prospective Subscriber in the Issuance, on the same terms
      and conditions, as to each unit of Subject Securities and Other Securities
      issued to the Participating Buyers, as the Prospective Subscriber shall be
      issued units of Subject Securities and Other Securities.

            2.1.4. Certain Legal Requirements. In the event that the
      participation in the Issuance by a Participation Offeree as a
      Participating Buyer would require under applicable law (i) the
      registration or qualification of such securities or of any Person as a
      broker or dealer or agent with respect to such securities where such
      registration or qualification is not otherwise required for the Issuance
      or (ii) the provision to any participant in the Sale of any specified
      information regarding the Company or any of its subsidiaries or the
      securities that is not otherwise required to be provided for the Issuance,
      such Participation Offeree shall not have the right to participate in the
      Issuance. Without limiting the generality of the foregoing, it is
      understood and agreed that neither the Company nor the Issuer shall be
      under any obligation to effect a registration of such securities under the
      Securities Act or similar state statutes.

            2.1.5. Further Assurances. Each Participating Buyer shall take or
      cause to be taken all such reasonable actions as may be necessary or
      reasonably desirable in order expeditiously to consummate each Issuance
      pursuant to this Section 2.1 and any related transactions, including
      executing, acknowledging and delivering consents, assignments, waivers and
      other documents or instruments; filing applications, reports, returns,
      filings and other documents or instruments with governmental authorities;
      and otherwise cooperating with the Issuer and the Prospective Subscriber.
      Without limiting the generality of the foregoing, each such Participating
      Buyer agrees to execute and deliver

                                                                             -4-

<PAGE>

      such subscription and other agreements specified by the Issuer to which
      the Prospective Subscriber will be party.

            2.1.6. Expenses. All costs and expenses incurred by the Issuer in
      connection with any proposed Issuance of Subject Securities (whether or
      not consummated), including all attorney's fees and charges, all
      accounting fees and charges and all finders, brokerage or investment
      banking fees, charges or commissions, shall be paid by the Company or the
      Issuer. The reasonable fees and charges of a single legal counsel for each
      Investor Group in connection with such proposed Issuance of Subject
      Securities (whether or not consummated) shall be paid by the Company or
      the Issuer. Any other costs and expenses incurred by or on behalf of any
      holder of Shares in connection with such proposed Issuance of Subject
      Securities (whether or not consummated) shall be borne by such holder.

            2.1.7. Closing. The closing of an Issuance pursuant to Section 2.1
      shall take place on (i) the proposed date of Issuance, if any, set forth
      in the Participation Notice (provided that consummation of any Transfer
      may be extended beyond such date to the extent necessary to obtain any
      applicable governmental approval or other required approval or to satisfy
      other conditions), (ii) if no proposed Transfer date was required to be
      specified in the Participation Notice, at such time as the Issuer shall
      specify by notice to each Participating Buyer, provided that such closing
      with respect to a Participating Buyer shall not be prior to the date that
      is ten business days after the Company issues the applicable Participation
      Notice without the consent of such Participating Buyer and (iii) at such
      place as the Issuer shall specify by notice to each Participating Buyer.
      At the closing of any Issuance under this Section 2.1.7, each
      Participating Buyer shall be delivered the notes, certificates or other
      instruments evidencing the Subject Securities (and, if applicable, Other
      Securities) to be issued to such Participating Buyer, registered in the
      name of such Participating Buyer or such holder's designated nominee, free
      and clear of any liens or encumbrances, with any transfer tax stamps
      affixed, against delivery by such Participating Buyer of the applicable
      consideration.

      2.2.  Post-Issuance Notice. Notwithstanding the requirements of Section
2.1, the Issuer may proceed with any Issuance prior to having complied with the
provisions of Section 2.1; provided that the Issuer shall:

                  (a) provide to each holder of Shares who would have been a
            Participation Offeree in connection with such Issuance (i) with
            prompt notice of such Issuance and (ii) the Participation Notice
            described in Section 2.1.1 in which the actual price per unit of
            Subject Securities (and, if applicable, actual Price Per Equivalent
            Share) shall be set forth;

                  (b) offer to issue to such holder of Shares such number of
            securities of the type issued in the Issuance as may be requested by
            such holder of Shares (not to exceed the Participation Portion that
            such holder of Shares would have been entitled to pursuant to
            Section 2.1 multiplied by the sum of (a) the number of Subject
            Securities included in the Issuance and (b) the aggregate number of
            shares issued pursuant to this Section 2.2 with respect to such
            Issuance) on the same

                                                                             -5-

<PAGE>

            economic terms and conditions with respect to such securities as the
            subscribers in the Issuance received; and

                  (c) keep such offer open for a period of ten business days,
            during which period, each such holder may accept such offer by
            sending a written acceptance to the Issuer committing to purchase an
            amount of such securities (not in any event to exceed the
            Participation Portion that such holder would have been entitled to
            pursuant to Section 2.1 multiplied by the sum of (a) the number of
            Subject Securities included in such issuance and (b) the aggregate
            number of shares issued pursuant to this Section 2.2 with respect to
            such Issuance).

      2.3.  Excluded Transactions. The provisions of this Section 2 shall not
apply to Issuances by the Company or any subsidiary of the Company as follows:

                  (a) Any Issuance of Stock upon the exercise or conversion of
            any Stock, Options, Warrants or Convertible Securities outstanding
            on the date hereof or Issued after the date hereof in compliance
            with the provisions of this Section 2;

                  (b) Any Issuance of shares of Stock, Options, Warrants or
            Convertible Securities, in each case to the extent approved by the
            Board, to officers, employees, directors or consultants of the
            Company or its subsidiaries in connection with such Person's
            employment or consulting arrangements with the Company or its
            subsidiaries;

                  (c) Any Issuance of shares of Stock, Options, Warrants or
            Convertible Securities, in each case to the extent approved by the
            Board, (i) in any business combination or acquisition transaction
            involving the Company or any of its subsidiaries, (ii) in connection
            with any joint venture or strategic partnership or (iii) in
            connection with the incurrence or guarantee of indebtedness by the
            Company or any of its subsidiaries;

                  (d) Any Issuance of Stock pursuant to a Qualified Public
            Offering;

                  (e) The Issuance of Shares to the Investors, Managers and
            Manager Designees in connection with the Closing; or

                  (f) Any Issuance of shares of Stock in connection with any
            stock split, stock dividend or recapitalization approved by the
            Board.

      2.4.  Certain Provisions Applicable to Options, Warrants and Convertible
Securities. In the event that the Issuance of Subject Securities shall result in
any increase in the number of shares of Stock issuable upon exercise, conversion
or exchange of any Options, Warrants or Convertible Securities, the number of
shares (or Equivalent Shares, if applicable) of Subject Securities (and Other
Securities, if applicable) which the holders of such Options, Warrants or
Convertible Securities, as the case may be, shall be entitled to purchase
pursuant to Section 2.1, if any, shall be reduced, share for share, by the
amount of any such increase.

                                                                             -6-

<PAGE>

      2.5.  Acquired Shares. Any Subject Securities constituting Stock acquired
by any Investor, Manager or Manager Designee pursuant to this Section 2 shall be
deemed for all purposes hereof to be Shares hereunder and under the Stockholders
Agreement.

      2.6.  Period. Each of the foregoing provisions of this Section 2 shall
expire on the earlier of (a) a Change of Control or (b) the closing of the
Initial Public Offering.

3.    REGISTRATION RIGHTS. The Company will perform and comply, and cause each
of its subsidiaries to perform and comply, with such of the following provisions
as are applicable to it. Each Holder will perform and comply with such of the
following provisions as are applicable to such Holder.

      3.1.  Demand Registration Rights for Investor Registrable Securities.

            3.1.1. General. One or more Investors or direct or indirect
      Permitted Registration Rights Assignees of Investors (the "Initiating
      Investors"), by notice to the Company specifying the intended method or
      methods of disposition, may request that the Company effect the
      registration under the Securities Act for a Public Offering of all or a
      specified part of the Registrable Securities held by such Initiating
      Investors; provided, however, that the value of Registrable Securities
      that the Initiating Investors propose to sell in such Public Offering is
      at least fifty million dollars ($50,000,000) or such lower amount as
      agreed by the Requisite Stockholder Majority; and provided, further, that
      the Initial Public Offering may not be initiated pursuant to this Section
      3.1 without the approval of the Requisite Stockholder Majority. The
      Company will then use its best efforts to (i) effect the registration
      under the Securities Act (including by means of a shelf registration
      pursuant to Rule 415 under the Securities Act if so requested by a
      majority of the Investors that then hold a number of shares of Class A
      Common Stock equal to at least $100 million of aggregate Purchase Price
      Value (in respect of shares originally issued as Class A Common Stock,
      Class L Common Stock or otherwise) and if the Company is then eligible to
      use such registration) of the Registrable Securities which the Company has
      been requested to register by such Initiating Investors together with all
      other Registrable Securities which the Company has been requested to
      register pursuant to Section 3.2 by other Holders, all to the extent
      requisite to permit the disposition (in accordance with the intended
      methods thereof as aforesaid and as otherwise specified by the Principal
      Participating Holders) of the Registrable Securities which the Company has
      been so requested to register, and (ii) if requested by the Principal
      Participating Holders, obtain acceleration of the effective date of the
      registration statement relating to such registration; provided, however,
      that the Company shall not be obligated to take any action to effect any
      such registration pursuant to this Section 3.1.1:

                   (a) during the effectiveness of any Principal Lock-Up
            Agreement entered into in connection with any registration statement
            pertaining to an underwritten public offering of securities of the
            Company for its own account (other than a Rule 145 Transaction, or a
            registration relating solely to employee benefit plans);

                                                                             -7-

<PAGE>

                   (b) upon the request of Initiating Investors that are or were
            members of an Investor Group on any form other than Form S-3 (or any
            successor form) if the Company has previously effected a number of
            registrations of Registrable Securities under this Section 3.1.1
            upon the request of Initiating Investors that are or were members of
            such Investor Group on any form other than Form S-3 (or any
            successor form) equaling or exceeding three (3) with respect to such
            Investor Group; provided, however, that any registration of
            Registrable Securities (i) which does not become and remain
            effective for at least 270 days in accordance with the provisions of
            this Section 3 or (ii) pursuant to which the Initiating Investors
            and all other holders of Registrable Securities joining therein are
            not able to include at least 90% of the Registrable Securities which
            they desired to include, shall not be included in the calculation of
            the numbers of registrations contemplated by this clause (b); or

                   (c) if a registration statement requested under this Section
            3.1.1 became effective within the preceding 90 days.

            3.1.2. Form. Except as otherwise provided above or required by law,
      each registration requested pursuant to Section 3.1.1 shall be effected by
      the filing of a registration statement on Form S-3 (or any other form
      which includes substantially the same information as would be required to
      be included in a registration statement on such form as currently
      constituted); provided that if any registration requested pursuant to this
      Section 3.1 is proposed to be effected on Form S-3 (or any successor or
      similar shortform registration statement) and is in connection with an
      underwritten offering, and if the managing underwriter shall advise the
      Company in writing that, in its opinion, it is of material importance to
      the success of such proposed offering to file a registration statement on
      Form S-1 (or any successor or similar registration statement) or to
      include in such registration statement information not required to be
      included pursuant to Form S-3 (or any successor or similar shortform
      registration statement), then the Company will file a registration
      statement on Form S-1 or supplement Form S-3 (or any successor or similar
      shortform registration statement) as reasonably requested by such managing
      underwriter.

            3.1.3. Payment of Expenses. The Company shall pay all Registration
      Expenses in connection with registrations of Registrable Securities
      pursuant to this Section 3.1, including all reasonable expenses (other
      than fees and disbursements of counsel that do not constitute Registration
      Expenses) that any Holder incurs in connection with each registration of
      Registrable Securities requested pursuant to this Section 3.1.

            3.1.4. Additional Procedures. In the case of a registration pursuant
      to Section 3.1 hereof, whenever the Principal Participating Holders shall
      request that such registration shall be effected pursuant to an
      underwritten offering, the Company shall include such information in the
      written notices to Holders referred to in Section 3.2. In such event, the
      right of any Holder to have securities owned by such Holder included in
      such registration pursuant to Section 3.1 shall be conditioned upon such
      Holder's participation in such underwriting and the inclusion of such
      Holder's Registrable Securities in the underwriting (unless otherwise
      mutually agreed upon by the Principal

                                                                             -8-

<PAGE>

      Participating Holders and such Holder). If requested by the Principal
      Participating Holders, the Company together with the Holders proposing to
      distribute their securities through the underwriting will enter into an
      underwriting agreement with the underwriters for such offering containing
      such representations and warranties by the Company and such Holders and
      such other terms and provisions as are customarily contained in
      underwriting agreements with respect to secondary distributions, including
      customary indemnity and contribution provisions (subject, in each case, to
      the limitations on such liabilities set forth in this Agreement).

            3.1.5. Suspension of Registration. If the filing, initial
      effectiveness or continued use of a registration statement, including a
      shelf registration statement pursuant to Rule 415 under the Securities
      Act, in respect of a registration pursuant to this Section 3.1 at any time
      would require the Company to make a public disclosure of material
      non-public information, which disclosure in the good faith judgment of the
      Board (after consultation with external legal counsel) (i) would be
      required to be made in any registration statement so that such
      registration statement would not be materially misleading, (ii) would not
      be required to be made at such time but for the filing, effectiveness or
      continued use of such registration statement and (iii) would have a
      material adverse effect on the Company or its business or on the Company's
      ability to effect a material proposed acquisition, disposition, financing,
      reorganization, recapitalization or similar transaction, then the Company
      may, upon giving prompt written notice of such action to the Holders
      participating in such registration, delay the filing or initial
      effectiveness of, or suspend use of, such registration statement;
      provided, that the Company shall not be permitted to do so (i) more than
      two times during any 12 month period, (ii) for a period exceeding 30 days
      on any one occasion or (iii) for a period exceeding 60 days in any 12
      month period. In the event the Company exercises its rights under the
      preceding sentence, such Holders agree to suspend, promptly upon their
      receipt of the notice referred to above, their use of any prospectus
      relating to such registration in connection with any sale or offer to sell
      Registrable Securities. The Company shall promptly notify such Holders of
      the expiration of any period during which it exercised its rights under
      this Section 3.1.5. The Company agrees that, in the event it exercises its
      rights under this Section 3.1.5, it shall, within 30 days following such
      Holders' receipt of the notice of suspension, update the suspended
      registration statement as may be necessary to permit the Holders to resume
      use thereof in connection with the offer and sale of their Registrable
      Securities in accordance with applicable law.

      3.2.  Piggyback Registration Rights.

            3.2.1. Piggyback Registration.

                   (a) General. Each time the Company proposes to register any
            shares of Common Stock under the Securities Act on a form which
            would permit registration of Registrable Securities for sale to the
            public, for its own account and/or for the account of any other
            Person (pursuant to Section 3.1 or otherwise) for sale in a Public
            Offering, the Company will give notice to all Holders of its
            intention to do so. Any Holder may, by written response delivered to
            the

                                                                             -9-

<PAGE>

            Company within 20 days after the date of delivery of such notice,
            request that all or a specified part of such Holder's Registrable
            Securities be included in such registration. The Company thereupon
            will use its best efforts to cause to be included in such
            registration under the Securities Act all Registrable Securities
            which the Company has been so requested to register by such Holders,
            to the extent required to permit the disposition (in accordance with
            the methods to be used by the Company or, pursuant to Section 3.1,
            other Holders in such Public Offering) of the Registrable Securities
            to be so registered; provided that (i) if, at any time after giving
            written notice of its intention to register any securities, the
            Company shall determine for any reason not to proceed with the
            proposed registration of the securities to be sold by it, the
            Company may, at its election, give written notice of such
            determination to each Holder and, thereupon, shall be relieved of
            its obligation to register any Registrable Securities in connection
            with such registration (but not from its obligation to pay the
            Registration Expenses in connection therewith), and (ii) if such
            registration involves an underwritten offering, all Holders
            requesting to be included in the Company's registration must sell
            their Registrable Securities to the underwriters selected by the
            Company on the same terms and conditions as apply to the Company
            (with such differences as may be customary or appropriate in
            combined primary and secondary offerings) or, in the case of a
            registration initiated pursuant to Section 3.1.1, the Principal
            Participating Holders. No registration of Registrable Securities
            effected under this Section 3.2 shall relieve the Company of any of
            its obligations to effect registrations of Registrable Securities
            pursuant to Section 3.1 hereof.

                  (b) Excluded Transactions. The Company shall not be obligated
            to effect any registration of Registrable Securities under this
            Section 3.2 incidental to the registration of any of its securities
            in connection with:

                      (i)   Any Public Offering relating to employee benefit
                  plans or dividend reinvestment plans;

                      (ii)  Any Public Offering relating to the acquisition or
                  merger after the date hereof by the Company or any of its
                  subsidiaries of or with any other businesses except to the
                  extent such Public Offering is for the sale of securities in
                  cash; or

                      (iii) The Initial Public Offering, unless such offering
                  shall have been initiated pursuant to Section 3.1.1 or the
                  Requisite Stockholder Majority determines otherwise.

            3.2.2. Payment of Expenses. The Company will pay all Registration
      Expenses in connection with registrations of Registrable Securities
      pursuant to this Section 3.2.

            3.2.3. Additional Procedures. Holders participating in any Public
      Offering pursuant to this Section 3.2 shall take all such actions and
      execute all such documents and instruments that are reasonably requested
      by the Company to effect the sale of their Registrable Securities in such
      Public Offering, including being parties to the

                                                                            -10-

<PAGE>

      underwriting agreement entered into by the Company and any other selling
      shareholders in connection therewith and being liable in respect of the
      representations and warranties and the other agreements (including
      customary selling stockholder representations, warranties,
      indemnifications and "lock-up" agreements) for the benefit of the
      underwriters contained therein; provided, however, that (a) with respect
      to individual representations, warranties, indemnities and agreements of
      sellers of Registrable Securities in such Public Offering, the aggregate
      amount of such liability shall not exceed such holder's net proceeds from
      such offering and (b) to the extent selling stockholders give further
      representations, warranties and indemnities, then with respect to all
      other representations, warranties and indemnities of sellers of shares in
      such Public Offering, the aggregate amount of such liability shall not
      exceed the lesser of (i) such holder's pro rata portion of any such
      liability, in accordance with such holder's portion of the total number of
      Registrable Securities included in the offering, and (ii) such holder's
      net proceeds from such offering.

            3.2.4. Registration Statement Form. The Company shall select the
      registration statement form for any registration pursuant to this Section
      3.2 (other than a registration that is also pursuant to Section 3.1);
      provided that if any registration requested pursuant to this Section 3.2
      is proposed to be effected on Form S-3 (or any successor form) and is in
      connection with an underwritten offering, and if the managing underwriter
      shall advise the Company in writing that, in its opinion, it is of
      material importance to the success of such proposed offering to include in
      such registration statement information not required to be included
      pursuant to such form, then the Company will supplement such registration
      statement as reasonably requested by such managing underwriter.

      3.3.  Certain Other Provisions.

            3.3.1. Underwriter's Cutback. In connection with any registration of
      shares, the underwriter may determine that marketing factors (including an
      adverse effect on the per share offering price) require a limitation of
      the number of shares to be underwritten. Notwithstanding any contrary
      provision of this Section 3 and subject to the terms of this Section
      3.3.1, the underwriter may limit the number of shares which would
      otherwise be included in such registration by excluding any or all
      Registrable Securities from such registration, it being understood that,
      if the registration in question involves a registration for sale of
      securities for the Company's own account, then the number of shares which
      the Company seeks to have registered in such registration shall not be
      subject to exclusion, in whole or in part, under this Section 3.3.1. Upon
      receipt of notice from the underwriter of the need to reduce the number of
      shares to be included in the registration, the Company shall advise all
      holders of the Company's securities that would otherwise be registered and
      underwritten pursuant hereto, and the number of shares of such securities,
      including Registrable Securities, that may be included in the registration
      shall be allocated in the following manner, unless the underwriter shall
      determine that marketing factors require a different allocation: shares,
      other than Registrable Securities, requested to be included in such
      registration by other shareholders shall be excluded unless the Company,
      with the consent of the parties required to approve any amendment or
      waiver of this Agreement pursuant to Section 6.2, has granted registration
      rights which are to be treated on an equal basis with

                                                                            -11-

<PAGE>

      Registrable Securities for the purpose of the exercise of the underwriter
      cutback (such shares afforded such equal treatment being "Parity Shares");
      and, if a limitation on the number of shares is still required, the number
      of Registrable Securities, Parity Shares and other shares of Common Stock
      that may be included in such registration shall be allocated among the
      holders thereof in proportion, as nearly as practicable, as follows:

                  (a) there shall be first allocated to each such holder
            requesting that its Registrable Securities or Parity Shares be
            registered in such registration a number of such shares to be
            included in such registration equal to the lesser of (A) the number
            of such shares requested to be registered by such holder, and (B) a
            number of such shares equal to such holder's Pro Rata Portion;

                  (b) the balance, if any, not allocated pursuant to clause (i)
            above shall be allocated to those holders requesting that their
            Registrable Securities or Parity Shares be registered in such
            registration which requested to register a number of such shares in
            excess of such holder's Pro Rata Portion pro rata to each such
            holder based upon the number of Registrable Securities and Parity
            Shares held by such holder, or in such other manner as the holders
            requesting that their Registrable Securities or Parity Shares be
            registered in such registration may otherwise agree; and

                  (c) the balance, if any, not allocated pursuant to clause (ii)
            above shall be allocated to shares, other than Registrable
            Securities and Parity Shares, requested to be included in such
            registration by other stockholders.

For purposes of any underwriter cutback, all Registrable Securities held by any
Holder shall also include any Registrable Securities held by the partners,
retired partners, shareholders or Affiliates of such Holder, or the estates and
family members of any such Holder or such partners and retired partners, any
trusts for the benefit of any of the foregoing Persons and, at the election of
such Holder or such partners, retired partners, trusts or Affiliates, any
Charitable Organization to which any of the foregoing shall have contributed
Common Stock prior to the execution of the underwriting agreement in connection
with such underwritten offering, and such Holder and other Persons shall be
deemed to be a single selling Holder, and any pro rata reduction with respect to
such selling Holder shall be based upon the aggregate amount of Common Stock
owned by all entities and individuals included in such selling Holder, as
defined in this sentence. No securities excluded from the underwriting by reason
of the underwriter's marketing limitation shall be included in such
registration. Upon delivery of a written request that Registrable Securities be
included in the underwriting pursuant to Section 3.1.1 or 3.2.1(a), the Holder
thereof may not thereafter elect to withdraw therefrom without the written
consent of the Principal Participating Holders; provided that, if the managing
underwriter of any underwritten offering shall advise the Holders participating
in a registration pursuant to Section 3.1 that the Registrable Securities
covered by the registration statement cannot be sold in such offering within a
price range acceptable to the Principal Participating Investors, then the
Principal Participating Investors shall have the right to notify the Company
that they have determined that the registration statement be abandoned or
withdrawn, in which event the Company shall abandon or withdraw such
registration statement; provided, further, that if the price to the public at
which the Registrable Securities are proposed to be sold will be less than 90%
of the average

                                                                            -12-

<PAGE>

closing price of the Class A-4 Common Stock during the 10 trading days preceding
the date on which notice of such offering was given pursuant to Section
3.2.1(a), then the Investors participating in such registration pursuant to
Section 3.1 or 3.2 may elect to withdraw from such registration by written
notice to the Company. The Company may, but shall not be required to, extend a
similar withdrawal right to other Holders of Registrable Securities or Parity
Shares.

            3.3.2. Registration Procedures. If and in each case when the Company
      is required to effect a registration of any Registrable Securities as
      provided in this Section 3, the Company shall promptly:

                  (a) prepare and, in any event within forty-five days (thirty
            days in the case of a Form S-3 registration) after the end of the
            period under Section 3.2.1(a) within which a piggyback request for
            registration may be given to the Company, file with the Commission a
            registration statement with respect to such Registrable Securities
            and use its best efforts to cause such registration statement to
            become effective within ninety days of the initial filing;

                  (b) prepare and file with the Commission such amendments and
            supplements to such registration statement and the prospectus used
            in connection therewith as may be necessary to keep such
            registration statement effective for a period not in excess of 270
            days (or such shorter period which will terminate when all
            Registrable Securities covered by such registration statement have
            been sold) and to comply with the provisions of the Securities Act
            and the Exchange Act with respect to the disposition of all
            securities covered by such registration statement during such period
            in accordance with the intended methods of disposition by the seller
            or sellers thereof set forth in such registration statement;
            provided that before filing a registration statement or prospectus,
            or any amendments or supplements thereto in accordance with Sections
            3.1 or 3.2, the Company will furnish to counsel selected pursuant to
            Section 3.3.3 hereof copies of all documents proposed to be filed,
            which documents will be subject to the review of such counsel;

                  (c) furnish to each seller of such Registrable Securities such
            number of copies of such registration statement and of each
            amendment and supplement thereto (in each case including all
            exhibits filed therewith), such number of copies of the prospectus
            included in such registration statement (including each preliminary
            prospectus and summary prospectus), in conformity with the
            requirements of the Securities Act, and such other documents as such
            seller may reasonably request in order to facilitate the disposition
            of the Registrable Securities by such seller;

                  (d) use its best efforts to register or qualify such
            Registrable Securities covered by such registration in such
            jurisdictions as each seller shall reasonably request, and do any
            and all other acts and things which may be reasonably necessary or
            advisable to enable such seller to consummate the disposition in
            such jurisdictions of the Registrable Securities owned by such
            seller, except that the Company shall not for any such purpose be
            required to qualify generally to do

                                                                            -13-

<PAGE>

            business as a foreign corporation in any jurisdiction where, but for
            the requirements of this clause (d), it would not be obligated to be
            so qualified or to consent to general service of process in any such
            jurisdiction;

                  (e) notify each seller of any such Registrable Securities
            covered by such registration statement, at any time when a
            prospectus relating thereto is required to be delivered under the
            Securities Act, of the Company's becoming aware that 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, and at the request of any such seller, prepare and
            furnish to such seller a reasonable number of copies of an amended
            or supplemental prospectus as may be necessary so that, as
            thereafter delivered to the purchasers of such Registrable
            Securities, such prospectus shall not include an untrue statement of
            a material fact or omit to state a material fact required to be
            stated therein or necessary to make the statements therein not
            misleading in the light of the circumstances then existing;

                  (f) otherwise use its best efforts to comply with all
            applicable rules and regulations of the Commission, and make
            available to its security holders, as soon as reasonably practicable
            (but not more than 18 months) after the effective date of the
            registration statement, an earnings statement which shall satisfy
            the provisions of Section 11(a) of the Securities Act;

                  (g) (i) if such Registrable Securities are Common Stock
            (including Common Stock issuable upon conversion, exchange or
            exercise of another security), use its best efforts to list such
            Registrable Securities on any securities exchange or authorize for
            quotation on each other market (including, if applicable, the
            National Association of Securities Dealers, Inc. (the "NASD") ----
            Automated Quotation System) on which the Common Stock is then listed
            or authorized for quotation if such Registrable Securities are not
            already so listed or authorized for quotation; and (ii) use its best
            efforts to provide a transfer agent and registrar for such
            Registrable Securities covered by such registration statement not
            later than the effective date of such registration statement;

                  (h) enter into such customary agreements (including an
            underwriting agreement in customary form), which may include
            indemnification provisions in favor of underwriters and other
            Persons in addition to the provisions of Section 6.4 hereof, and
            take such other actions as the Principal Participating Holders or
            the underwriters, if any, reasonably requested in order to expedite
            or facilitate the disposition of such Registrable Securities;

                  (i) obtain a "cold comfort" letter or letters from the
            Company's independent public accountants in customary form and
            covering matters of the type customarily covered by "cold comfort"
            letters as the Principal Participating Holders shall reasonably
            request;

                                                                            -14-

<PAGE>

                  (j) make available for inspection by any seller of such
            Registrable Securities covered by such registration statement, by
            any managing underwriter or underwriters participating in any
            disposition to be effected pursuant to such registration statement
            and by any attorney, accountant or other agent retained by any such
            seller or any such managing underwriter(s), all pertinent financial
            and other records, pertinent corporate documents and properties of
            the Company, and cause all of the Company's officers, directors and
            employees to supply all information reasonably requested by any such
            seller, underwriter, attorney, accountant or agent in connection
            with such registration statement (subject to each party referred to
            in this clause (j) entering into customary confidentiality
            agreements in a form reasonably acceptable to the Company);

                  (k) notify counsel (selected pursuant to Section 3.3.3 hereof)
            for the Holders of Registrable Securities included in such
            registration statement and the managing underwriter or agent,
            immediately, and confirm the notice in writing (i) when the
            registration statement, or any post-effective amendment to the
            registration statement, shall have become effective, or any
            supplement to the prospectus or any amendment to the prospectus
            shall have been filed, (ii) of the receipt of any comments from the
            Commission, (iii) of any request of the Commission to amend the
            registration statement or amend or supplement the prospectus or for
            additional information, and (iv) of the issuance by the Commission
            of any stop order suspending the effectiveness of the registration
            statement or of any order preventing or suspending the use of any
            preliminary prospectus, or of the suspension of the qualification of
            the registration statement for offering or sale in any jurisdiction,
            or of the institution or threatening of any proceedings for any of
            such purposes;

                  (l) make every commercially reasonable effort to prevent the
            issuance of any stop order suspending the effectiveness of the
            registration statement or of any order preventing or suspending the
            use of any preliminary prospectus and, if any such order is issued,
            to obtain the withdrawal of any such order as soon as practicable;

                  (m) if requested by the managing underwriter or agent or any
            Holder of Registrable Securities covered by the registration
            statement, incorporate in a prospectus supplement or post-effective
            amendment such information as the managing underwriter or agent or
            such Holder reasonably requests to be included therein, including,
            with respect to the number of Registrable Securities being sold by
            such Holder to such underwriter or agent, the purchase price being
            paid therefor by such underwriter or agent and with respect to any
            other terms of the underwritten offering of the Registrable
            Securities to be sold in such offering; and make all required
            filings of such prospectus supplement or post-effective amendment as
            soon as practicable after being notified of the matters incorporated
            in such prospectus supplement or post-effective amendment;

                  (n) cooperate with the Holders of Registrable Securities
            covered by the registration statement and the managing underwriter
            or agent, if any, to facilitate

                                                                            -15-

<PAGE>

            the timely preparation and delivery of certificates (not bearing any
            restrictive legends) representing securities to be sold under the
            registration statement, and enable such securities to be in such
            denominations and registered in such names as the managing
            underwriter or agent, if any, or such Holders may request;

                  (o) obtain for delivery to the Holders of Registrable
            Securities being registered and to the underwriter or agent an
            opinion or opinions from counsel for the Company in customary form
            and in form, substance and scope reasonably satisfactory to such
            Holders, underwriters or agents and their counsel;

                  (p) cooperate with each seller of Registrable Securities and
            each underwriter or agent participating in the disposition of such
            Registrable Securities and their respective counsel in connection
            with any filings required to be made with the NASD; and

                  (q) use its commercially reasonable best efforts to make
            available the executive officers of the Company to participate with
            the Holders of Registrable Securities and any underwriters in any
            "road shows" that may be reasonably requested by the Holders in
            connection with distribution of the Registrable Securities.

            3.3.3. Selection of Underwriters and Counsel. The underwriters and
      legal counsel to be retained by the Company in connection with any Public
      Offering shall be selected by the Board; provided that, in the case of an
      offering following a request therefor under Section 3.1.1, such
      underwriters and counsel shall be reasonably acceptable to the Principal
      Participating Holders. In connection with any registration of Registrable
      Securities pursuant to Sections 3.1 and 3.2 hereof, the Principal
      Participating Holders may select one counsel to represent all Holders of
      Registrable Securities covered by such registration; provided, however,
      that in the event that the counsel selected as provided above is also
      acting as counsel to the Company in connection with such registration, the
      remaining Holders shall be entitled to select one additional counsel to
      represent, at such Holders' expense, all such remaining Holders.

            3.3.4. Company Lock-Up. If any registration pursuant to Section 3.1
      of this Agreement shall be in connection with an underwritten public
      offering, the Company agrees not to effect any public sale or distribution
      of any Common Stock of the Company (or securities convertible into or
      exchangeable or exercisable for Common Stock) (in each case, other than as
      part of such underwritten public offering and other than pursuant to a
      registration on Form S-4 or S-8) for its own account, within 90 days (or
      such shorter period as the managing underwriters may require) after, the
      effective date of such registration (except as part of such registration).

            3.3.5. Holders and Other Holders Lock-Up. Each Holder and each Other
      Holder shall comply with the provisions of Section 5 of the Stockholders
      Agreement applicable to a "Stockholder" as though such Section were set
      forth herein.

                                                                            -16-

<PAGE>

            3.3.6. Other Agreements. The Company covenants and agrees that, so
      long as any Person holds any Registrable Securities in respect of which
      any registration rights provided for in Section 3.1 of this Agreement
      remain in effect, the Company will not, directly or indirectly, grant to
      any Person or agree to or otherwise become obligated in respect of (i)
      rights of registration in the nature or substantially in the nature of
      those set forth in Section 3.1 of this Agreement that would have priority
      over the Registrable Securities with respect to the inclusion of such
      securities in any registration or (ii) demand registration rights
      exercisable prior to such time as the Investors can first exercise their
      rights under Section 3.1.

      3.4.  Indemnification and Contribution.

            3.4.1. Indemnities of the Company. In the event of any registration
      of any Registrable Securities or other debt or equity securities of the
      Company or any of its subsidiaries under the Securities Act pursuant to
      this Section 3 or otherwise, and in connection with any registration
      statement or any other disclosure document produced by or on behalf of the
      Company or any of its subsidiaries including reports required and other
      documents filed under the Exchange Act, and other documents pursuant to
      which any debt or equity securities of the Company or any of its
      subsidiaries are sold (whether or not for the account of the Company or
      its subsidiaries), the Company will, and hereby does, and will cause each
      of its subsidiaries, jointly and severally, to indemnify and hold harmless
      each holder of Registrable Securities, any Person who is or might be
      deemed to be a controlling Person of the Company or any of its
      subsidiaries within the meaning of Section 15 of the Securities Act or
      Section 20 of the Exchange Act, their respective direct and indirect
      partners, advisory board members, directors, officers, trustees, members
      and shareholders, and each other Person, if any, who controls any such
      holder or any such controlling Person within the meaning of Section 15 of
      the Securities Act or Section 20 of the Exchange Act (each such Person
      being referred to herein as a "Covered Person"), against any losses,
      claims, damages or liabilities (or actions or proceedings in respect
      thereof), joint or several, to which such Covered Person may be or become
      subject under the Securities Act, the Exchange Act, any other securities
      or other law of any jurisdiction, the common law or otherwise, insofar as
      such losses, claims, damages or liabilities (or actions or proceedings in
      respect thereof) arise out of or are based upon (i) any untrue statement
      or alleged untrue statement of any material fact contained or incorporated
      by reference in any registration statement under the Securities Act, any
      preliminary prospectus or final prospectus included therein, or any
      related summary prospectus, or any amendment or supplement thereto, or any
      document incorporated by reference therein, or any other such disclosure
      document (including reports and other documents filed under the Exchange
      Act and any document incorporated by reference therein) or other document
      or report, (ii) any 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 or any of its subsidiaries of any federal, state,
      foreign or common law rule or regulation applicable to the Company or any
      of its subsidiaries and relating to action or inaction in connection with
      any such registration, disclosure document or other document or report,
      and will reimburse such Covered Person for any legal or any other expenses
      incurred by it in connection with investigating or defending

                                                                            -17-

<PAGE>

      any such loss, claim, damage, liability, action or proceeding; provided,
      however, that neither the Company nor any of its subsidiaries shall be
      liable to any Covered Person in any such case to the extent that any such
      loss, claim, damage, liability, action or proceeding arises out of or is
      based upon an untrue statement or alleged untrue statement or omission or
      alleged omission made in such registration statement, any such preliminary
      prospectus, final prospectus, summary prospectus, amendment or supplement,
      incorporated document or other such disclosure document or other document
      or report, in reliance upon and in conformity with written information
      furnished to the Company or to any of its subsidiaries through an
      instrument duly executed by such Covered Person specifically stating that
      it is for use in the preparation thereof. The indemnities of the Company
      and of its subsidiaries contained in this Section 3.4.1 shall remain in
      full force and effect regardless of any investigation made by or on behalf
      of such Covered Person and shall survive any transfer of securities or any
      termination of this Agreement.

            3.4.2. Indemnities to the Company. Subject to Section 3.4.4, the
      Company and any of its subsidiaries may require, as a condition to
      including any securities in any registration statement filed pursuant to
      this Section 3, that the Company and any of its subsidiaries shall have
      received an undertaking satisfactory to it from the prospective seller of
      such securities, severally and not jointly, to indemnify and hold harmless
      the Company and any of its subsidiaries, each director of the Company or
      any of its subsidiaries, each officer of the Company or any of its
      subsidiaries who shall sign such registration statement and each other
      Person (other than such seller), if any, who controls the Company and any
      of its subsidiaries within the meaning of Section 15 of the Securities Act
      or Section 20 of the Exchange Act and each other prospective seller of
      such securities with respect to any statement in or omission from such
      registration statement, any preliminary prospectus, final prospectus or
      summary prospectus included therein, or any amendment or supplement
      thereto, or any other disclosure document (including reports and other
      documents filed under the Exchange Act or any document incorporated
      therein) or other document or report, if such statement or omission was
      made in reliance upon and in conformity with written information furnished
      to the Company or any of its subsidiaries through an instrument executed
      by such seller specifically stating that it is for use in the preparation
      of such registration statement, preliminary prospectus, final prospectus,
      summary prospectus, amendment or supplement, incorporated document or
      other document or report. Such indemnity shall remain in full force and
      effect regardless of any investigation made by or on behalf of the
      Company, any of its subsidiaries or any such director, officer or
      controlling Person and shall survive any transfer of securities or any
      termination of this Agreement.

            3.4.3. Contribution. If the indemnification provided for in Sections
      3.4.1 or 3.4.2 hereof is unavailable to a party that would have been
      entitled to indemnification pursuant to the foregoing provisions of this
      Section 3.4 (an "Indemnitee") in respect of any losses, claims, damages or
      liabilities (or actions or proceedings in respect thereof) referred to
      therein, then each party that would have been an indemnifying party
      thereunder shall, subject to Section 3.4.4 and in lieu of indemnifying
      such Indemnitee, contribute to the amount paid or payable by such
      Indemnitee as a result of such losses,

                                                                            -18-

<PAGE>

      claims, damages or liabilities (or actions or proceedings in respect
      thereof) in such proportion as is appropriate to reflect the relative
      fault of such indemnifying party on the one hand and such Indemnitee on
      the other in connection with the statements or omissions which resulted in
      such losses, claims, damages or liabilities (or actions or proceedings in
      respect thereof). The relative fault shall be determined by reference to,
      among other things, whether the untrue or alleged untrue statement of a
      material fact or the omission or alleged omission to state a material fact
      relates to information supplied by such indemnifying party or such
      Indemnitee and the parties' relative intent, knowledge, access to
      information and opportunity to correct or prevent such statement or
      omission. The parties agree that it would not be just or equitable if
      contribution pursuant to this Section 3.4.3 were determined by pro rata
      allocation or by any other method of allocation which does not take
      account of the equitable considerations referred to in the preceding
      sentence. The amount paid or payable by a contributing party as a result
      of the losses, claims, damages or liabilities (or actions or proceedings
      in respect thereof) referred to above in this Section 3.4.3 shall include
      any legal or other expenses reasonably incurred by such Indemnitee in
      connection with investigating or defending any such action or claim. No
      Person guilty of fraudulent misrepresentation (within the meaning of
      Section 11(f) of the Securities Act) shall be entitled to contribution
      from any Person who was not guilty of such fraudulent misrepresentation.

            3.4.4. Limitation on Liability of Holders of Registrable Securities.
      The liability of each holder of Registrable Securities in respect of any
      indemnification or contribution obligation of such holder arising under
      this Section 3.4 shall not in any event exceed an amount equal to the net
      proceeds to such holder (after deduction of all underwriters' discounts
      and commissions) from the disposition of the Registrable Securities
      disposed of by such holder pursuant to such registration.

            3.4.5. Indemnification Procedures. Promptly after receipt by an
      Indemnitee of written notice of the commencement of any action or
      proceeding with respect to which a claim for indemnification may be made
      pursuant to this Section 3.4, such Indemnitee will, if a claim in respect
      thereof is to be made against an indemnifying party, give written notice
      to the latter of the commencement of such action or proceeding; provided
      that the failure of the Indemnitee to give notice as provided herein shall
      not relieve the indemnifying party of its obligations under this Section
      3.4, except to the extent that the indemnifying party is materially
      prejudiced by such failure to give notice. In case any such action or
      proceeding is brought against an Indemnitee, the indemnifying party will
      be entitled to participate in and to assume the defense thereof (at its
      expense), jointly with any other indemnifying party similarly notified to
      the extent that it may wish, with counsel reasonably satisfactory to such
      Indemnitee, and after notice from the indemnifying party to such
      Indemnitee of its election so to assume the defense thereof, the
      indemnifying party will not be liable to such Indemnitee for any legal or
      other expenses subsequently incurred by the latter in connection with the
      defense thereof other than reasonable costs of investigation and shall
      have no liability for any settlement made by the Indemnitee without the
      consent of the indemnifying party, such consent not to be unreasonably
      withheld. Notwithstanding the foregoing, if in such Indemnitee's
      reasonable judgment a conflict of interest between such Indemnitee and the
      indemnifying parties may exist in respect of such action or proceeding or
      the

                                                                            -19-

<PAGE>

      indemnifying party does not assume the defense of any such action or
      proceeding within a reasonable time after notice of commencement, the
      Indemnitee shall have the right to assume or continue its own defense and
      the indemnifying party shall be liable for any reasonable expenses
      therefor, but in no event will bear the expenses for more than one firm of
      counsel for all Indemnitees in each jurisdiction who shall be approved by
      the Principal Participating Holders in the registration in respect of
      which such indemnification is sought. No indemnifying parry will settle
      any action or proceeding or consent to the entry of any judgment without
      the prior written consent of the Indemnitee, unless such settlement or
      judgment (i) includes as an unconditional term thereof the giving by the
      claimant or plaintiff of a release to such Indemnitee from all liability
      in respect of such action or proceeding and (ii) does not involve the
      imposition of equitable remedies or the imposition of any obligations on
      such Indemnitee and does not otherwise adversely affect such Indemnitee,
      other than as a result of the imposition of financial obligations for
      which such Indemnitee will be indemnified hereunder.

      3.5.  Permitted Registration Rights Assignees.

            3.5.1. Registration Rights. The rights of a holder of Registrable
      Securities to cause the Company to register its Registrable Securities
      pursuant to Section 3.1 or 3.2 may be assigned (but only with all related
      obligations as set forth below) in a Transfer effected in accordance with
      the terms of the Stockholders Agreement and this Agreement to: (a) a
      Charitable Organization, (b) a Permitted Transferee or (c) any other
      transferee that, together with its Affiliates, in the case of this clause
      (c) acquires shares of Registrable Securities either (i) for consideration
      of at least $10,000,000 or (ii) having a then fair market value
      (determined in good faith by the Board) of at least $10,000,000 (the
      transferees described in clauses (a), (b) and (c) each a "Permitted
      Registration Rights Assignee"). Without prejudice to any other or similar
      conditions imposed hereunder with respect to any such Transfer, no
      assignment permitted under the terms of this Section 3.5.1 shall be
      effective unless the Permitted Registration Rights Assignee, if not a
      Stockholder, has delivered to the Company a written acknowledgment and
      agreement in form and substance reasonably satisfactory to the Company
      that such Registrable Securities in respect of which such assignment is
      made shall be deemed Other Holder Shares and shall be subject to all of
      the provisions of this Agreement relating to Other Holder Shares and that
      such Permitted Registration Rights Assignee shall be bound by, and shall
      be an Other Holder party to, this Agreement and the holder of Other Holder
      Shares hereunder. A transferee to whom rights are transferred pursuant to
      this Section 3.5.1 may not again transfer such rights to any Person, other
      than as provided in this Section 3.5.1.

4.    REMEDIES.

      4.1.  Generally. The parties shall have all remedies available at law, in
equity or otherwise in the event of any breach or violation of this Agreement or
any default hereunder. The parties acknowledge and agree that in the event of
any breach of this Agreement, in addition to any other remedies which may be
available, each of the parties hereto shall be entitled to specific performance
of the obligations of the other parties hereto and, in addition, to such other

                                                                            -20-

<PAGE>

equitable remedies (including preliminary or temporary relief) as may be
appropriate in the circumstances.

5.    PERMITTED TRANSFEREES.

      5.1.  Transfers by Investors. The rights of an Investor hereunder may be
assigned (but only with all related obligations as set forth below) in
connection with a Transfer of Shares effected in accordance with the terms of
the Stockholders Agreement and this Agreement to a Permitted Transferee of such
Investor. Without prejudice to any other or similar conditions imposed hereunder
with respect to any such Transfer, no assignment permitted under the terms of
this Section 5.1 shall be effective unless the Permitted Transferee to which
such assignment is being made, if not a Stockholder, has delivered to the
Company a written acknowledgment and agreement in form and substance reasonably
satisfactory to the Company that the Shares in respect of which such assignment
is made shall continue to be deemed Shares and shall be subject to all of the
provisions of this Agreement relating to Shares and that such Permitted
Transferee shall be bound by, and shall be a party to, this Agreement as an
Investor. A Permitted Transferee to whom rights are transferred pursuant to this
Section 5.1 may not again transfer such rights to any other Permitted
Transferee, other than as provided in this Section 5.1.

      5.2.  Transfers by Managers or Manager Designees. The rights of a Manager
or Manager Designee hereunder may be assigned (but only with all related
obligations as set forth below) in connection with a Transfer of Shares effected
in accordance with the terms of the Stockholders Agreement and this Agreement to
a Permitted Transferee of such Manager or Manager Designee. Without prejudice to
any other or similar conditions imposed hereunder with respect to any such
Transfer, no assignment permitted under the terms of this Section 5.2 shall be
effective unless the Permitted Transferee to which such assignment is being
made, if not a Stockholder, has delivered to the Company a written
acknowledgment and agreement in form and substance reasonably satisfactory to
the Company that the Management Shares in respect of which such assignment is
made shall continue to be deemed Management Shares and shall be subject to all
of the provisions of this Agreement relating to Management Shares and that such
Permitted Transferee shall be bound by, and shall be a party to, this Agreement
as a Manager Designee. A Permitted Transferee to whom rights are transferred
pursuant to this Section 5.2 may not again transfer such rights to any other
Permitted Transferee, other than as provided in this Section 5.2.

6.    AMENDMENT, TERMINATION, ETC.

      6.1.  Oral Modifications. This Agreement may not be orally amended,
modified, extended or terminated, nor shall any oral waiver of any of its terms
be effective.

      6.2.  Written Modifications. This Agreement may be amended, modified,
extended or terminated, and the provisions hereof may be waived, only by an
agreement in writing signed by the Company, Midco and the Requisite Stockholder
Majority; provided, however, that the consent of a majority in interest of the
Management Shares shall be required for any amendment, modification, extension,
termination or waiver (an "Amendment") that discriminates against the rights of
the holders of Management Shares as such under this Agreement (provided, that it
is understood and agreed that, for the purposes of interpreting and enforcing
this amendment and

                                                                            -21-

<PAGE>

waiver provision, Amendments that affect all Stockholders will not be deemed to
"discriminate against" the holders of Management Shares as such simply because
holders of Management Shares (i) own or hold more or less Shares than any other
Stockholder, (ii) invested more or less money in the Company than any other
Stockholder, (iii) have greater or lesser voting rights or powers than any other
Stockholders) or (iv) have or had an employment and/or management position in
the Company.

Each such Amendment shall be binding upon each party hereto and each holder of
Shares or Other Holder Shares subject hereto. In addition, each party hereto and
each holder of Shares or Other Holder Shares subject hereto may waive any right
hereunder by an instrument in writing signed by such party or holder. To the
extent the Amendment of any Section of this Agreement would require a specific
consent pursuant this Section 6.2, any Amendment to the definitions used in such
Section shall also require the specified consent.

      6.3.  Withdrawal from Agreement. Any holder of Shares or Other Holder
Shares that withdraws Shares from the Stockholders Agreement in accordance with
Section 9.3 thereof shall be deemed to have simultaneously withdrawn such Shares
from this Agreement. From the date of delivery of such Person's withdrawal
notice pursuant to Section 9.3 of the Stockholders Agreement, the withdrawn
shares shall cease to be Shares subject to this Agreement and, if the holder of
Shares or Other Holder Shares does not own any Share that will remain subject to
this Agreement (each such holder, a "Withdrawing Holder"), such holder shall
cease to be a party to this Agreement and shall no longer be subject to the
obligations of this Agreement or have rights under this Agreement; provided,
however, that any such Withdrawing Holder shall retain the indemnification
rights pursuant to Section 3.4 hereof with respect to any matter that (i) may be
an indemnified liability thereunder and (ii) occurred prior to such withdrawal.

      6.4.  Effect of Termination. No termination under this Agreement shall
relieve any Person of liability for breach prior to termination. In the event
this Agreement is terminated, each Investor shall retain the indemnification
rights pursuant to Section 3.4 hereof with respect to any matter that (i) may be
an indemnified liability thereunder and (ii) occurred prior to such termination.

7.    DEFINITIONS. FOR PURPOSES OF THIS AGREEMENT:

      7.1.  Certain Matters of Construction. In addition to the definitions
referred to or set forth below in this Section 8:

                  (i) The words "hereof', "herein", "hereunder" and words of
            similar import shall refer to this Agreement as a whole and not to
            any particular Section or provision of this Agreement, and reference
            to a particular Section of this Agreement shall include all
            subsections thereof;

                  (ii) The word "including" shall mean including, without
            limitation;

                  (iii) Definitions shall be equally applicable to both nouns
            and verbs and the singular and plural forms of the terms defined;
            and

                                                                            -22-

<PAGE>

                  (iv) The masculine, feminine and neuter genders shall each
            include the other.

      7.2.  Definitions. The following terms shall have the following meanings:

      "Acquisition" shall have the meaning set forth in the Recitals.

      "AcquisitionCo" shall have the meaning set forth in the Preamble.

      "Acquisition Agreement" shall have the meaning set forth in the Recitals.

      "Affiliate" shall mean, with respect to any specified Person, (a) any
other Person which directly or indirectly through one or more intermediaries
controls, or is controlled by, or is under common control with, such specified
Person (for the purposes of this definition, "control" (including, with
correlative meanings, the terms "controlling," "controlled by" and "under common
control with"), as used with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise); provided, however, that neither the
Company nor any of its subsidiaries shall be deemed an Affiliate of any of the
Stockholders (and vice versa), (b) if such specified Person is an investment
fund, any other investment fund the primary investment advisor to which is the
primary investment advisor to such specified Person or an Affiliate thereof and
(c) if such specified Person is a natural Person, any Family Member of such
natural Person. Notwithstanding the foregoing, for all purposes of this
Agreement, Integral Capital Partners VI, L.P. and its Affiliates will be
considered Affiliates of Silver Lake Partners, L.P., Silver Lake Investors, L.P.
and Silver Lake Technology Investors, L.L.C. and their respective Affiliates.

      "Affiliated Fund" shall mean, with respect to any specified Person, an
investment fund that is an Affiliate of such Person or that is advised by the
same investment adviser as such Person or by an Affiliate of such investment
adviser.

      "Agreement" shall have the meaning set forth in the Preamble.

      "Amendment" shall have the meaning set forth in Section 6.2.

      "Bain Investors" shall mean, as of any date, Bain Capital Integral
Investors, LLC, Bain Capital VII Coinvestment Fund, LLC and BCIP TCV, LLC, and
their respective Permitted Transferees, in each case only if such Person is then
an Investor and holds any Shares.

      "Board" shall mean the board of directors of the Company.

      "business day" shall mean any day that is not a Saturday, a Sunday or
other day on which banks are required or authorized by law to be closed in the
City of New York.

      "Cause" shall mean, with respect to any Manager, the following events or
conditions, as determined by the Board in its reasonable judgment: (i) the
refusal or failure to perform (other than by reason of disability), or material
negligence in the performance of such employee's duties and responsibilities to
the Company or any of its Affiliates, or refusal or failure to follow or carry

                                                                            -23-

<PAGE>

out any reasonable direction of the Board, and the continuance of such refusal,
failure or negligence for a period of ten days after notice to such Manager;
(ii) the material breach by such Manager of any provision of any material
agreement between such employee and the Company or any of its Affiliates; (iii)
fraud, embezzlement, theft or other dishonesty by such Manager with respect to
the Company or any of its Affiliates; (iv) the conviction of, or a plea of nolo
contendere by, such Manager to any felony or any other crime involving
dishonesty or moral turpitude; and (v) any other conduct that involves a breach
of fiduciary obligation on the part of such Manager or otherwise could
reasonably be expected to have a material adverse effect upon the business,
interests or reputation of the Company or any of its Affiliates.

      "Change of Control" shall mean the occurrence of (a) any consolidation or
merger of the Company with or into any other corporation or other Person, or any
other corporate reorganization or transaction (including the acquisition of
capital stock of the Company), whether or not the Company is a party thereto, in
which the stockholders of the Company immediately prior to such consolidation,
merger, reorganization or transaction, own capital stock either (i) representing
directly, or indirectly through one or more entities, less than fifty percent
(50%) of the economic interests in or voting power of the Company or other
surviving entity immediately after such consolidation, merger, reorganization or
transaction or (ii) that does not directly, or indirectly through one or more
entities, have the power to elect a majority of the entire board of directors of
the Company or other surviving entity immediately after such consolidation,
merger, reorganization or transaction; (b) any transaction or series of related
transactions, whether or not the Company is a party thereto, after giving effect
to which in excess of fifty percent (50%) of the Company's voting power is owned
directly, or indirectly through one or more entities, by any Person and its
"affiliates" or "associates" (as such terms are defined in the rules adopted by
the Commission under the Exchange Act), other than the Investors and their
respective Affiliated Funds, excluding, in any case referred to in clause (a) or
(b) any Initial Public Offering or any bona fide primary or secondary public
offering following the occurrence of an Initial Public Offering; or (c) a sale,
lease or other disposition of all or substantially all of the assets of the
Company.

      "Charitable Organization" shall mean a charitable organization as
described by Section 501(c)(3) of the Internal Revenue Code of 1986, as in
effect from time to time.

      "Class A Stock" shall mean the Class A Common Stock, par value $.001 per
share, of the Company, which is comprised of Class A-1 Common Stock, Class A-2
Common Stock, Class A-3 Common Stock and Class A-4 Common Stock.

      "Class L Stock" shall mean the Class L Common Stock, par value $.001 per
share, of the Company.

      "Closing" shall have the meaning set forth in Section 1.1.

      "Commission" shall mean the Securities and Exchange Commission.

      "Common Stock" shall mean the common stock of the Company, including the
Class A Stock and the Class L Stock.

      "Company" shall have the meaning set forth in the Preamble.

                                                                            -24-

<PAGE>

      "Convertible Securities" shall mean any evidence of indebtedness, shares
of stock (other than Stock) or other securities (other than Options and
Warrants) which are directly or indirectly convertible into or exchangeable or
exercisable for shares of Stock.

      "Covered Person" shall have the meaning set forth in Section 3.4.1.

      "Equivalent Shares" shall mean, at any date of determination, (a) as to
any outstanding shares of Stock, such number of shares of Stock and (b) as to
any outstanding Options, Warrants or Convertible Securities which constitute
Shares, the maximum number of shares of Stock for which or into which such
Options, Warrants or Convertible Securities may at the time be exercised,
converted or exchanged (or which will become exercisable, convertible or
exchangeable on or prior to, or by reason of, the transaction or circumstance in
connection with which the number of Equivalent Shares is to be determined).

      "Exchange Act" shall mean the Securities Exchange Act of 1934, as in
effect from time to time.

      "Family Member" shall mean, with respect to any natural Person, (i) any
lineal descendant or ancestor or sibling (by birth or adoption) of such natural
Person, (ii) any spouse or former spouse of any of the foregoing, (iii) any
legal representative or estate of any of the foregoing, (iv) any trust
maintained for the benefit of the foregoing and (v) any corporation, private
charitable foundation or other organization controlled by the foregoing.

      "Holders" shall mean the holders of Registrable Securities under this
Agreement.

      "Holdings" shall have the meaning set forth in the Preamble.

      "Incentive Shares" shall mean all shares of Stock and Options held by a
Manager or Manager Designee that are not Purchased and Roll-Over Shares,
treating such Options as a number of Incentive Shares equal to the maximum
number of shares of Stock for which such Options may at the time be exercised.

      "Indemnitee" shall have the meaning set forth in Section 3.4.3.

      "Initial Public Offering" shall mean the initial Public Offering
registered on Form S-1 (or any successor form under the Securities Act).

      "Initiating Investors" shall have the meaning set forth in Section 3.1.1.

      "Investor Group" shall mean any one of (a) the Bain Investors,
collectively, (b) the Silver Lake Investors, collectively and (c) the Warburg
Pincus Investors, collectively. Where this Agreement provides for the vote,
consent or approval of any Investor Group, such vote, consent or approval shall
be determined by the Majority Bain Investors, the Majority Silver Lake Investors
or the Majority Warburg Pincus Investors, as the case may be, except as
otherwise specifically set forth herein; provided, however, that any such
Investor Group shall cease to be a Investor Group at such time after the
Closing, and at all times thereafter, as (i) such Investor Group ceases to hold
Shares representing a Total Combined Investment (as defined in the Company's
certificate of incorporation) of at least the Minimum Total Combined Investment
(as

                                                                            -25-

<PAGE>

defined in the Company's certificate of incorporation) or (ii) such Investor
Group ceases to hold Shares equal to or greater than the Minimum Director Share
Amount (as defined in the Company's certificate of incorporation); provided that
no adjustment pursuant to the Company's certificate of incorporation to the
"Minimum Total Combined Investment" or the "Minimum Director Share Amount" shall
cause any former Investor Group to again become an Investor Group.

      "Investors" shall have the meaning set forth in the Preamble.

      "Issuance" shall have the meaning set forth in Section 2.

      "Issuer" shall have the meaning set forth in Section 2.

      "Majority Bain Investors" shall mean, as of any date, the holders of a
Majority in Interest of the Shares held by the Bain Investors.

      "Majority in Interest" shall mean, (a) with respect to a set of Shares of
a single class, a majority of such Shares and (b) with respect to a set of
Shares of more than one class, a majority in aggregate Purchase Price Value of
such Shares.

      "Majority Silver Lake Investors" shall mean, as of any date, the holders
of a Majority in Interest of the Shares held by the Silver Lake Investors.

      "Majority Warburg Pincus Investors" shall mean, as of any date, the
holders of a Majority in Interest of the Shares held by the Warburg Pincus
Investors.

      "Management Shares" shall mean all Shares held by a Manager or Manager
Designee, including (a) all Purchased and Roll-Over Shares and (b) all Incentive
Shares held by such Manager or Manager Designee. Any Management Shares that are
Transferred by the holder thereof to such holder's Permitted Transferees shall
remain Management Shares in the hands of such Permitted Transferee.

      "Managers" shall have the meaning set forth in the Preamble.

      "Midco" shall have the meaning set forth in the Preamble.

      "NASD" shall have the meaning set forth in Section 3.3.2(g).

      "OpCo" shall have the meaning set forth in the Recitals.

      "Options" shall mean any options to subscribe for, purchase or otherwise
directly acquire Stock, other than any such option held by the Company or Midco
or any right to purchase shares pursuant to this Agreement.

      "Other Holder Shares" shall mean (a) all shares of Stock held by an Other
Holder that were Transferred to such Other Holder in a transaction subject to
Section 3.5.1 or that were acquired by such Other Holder upon the exercise,
conversion or exchange of any Options, Warrants or Convertible Securities that
were Transferred to such Other Holder in a transaction

                                                                            -26-

<PAGE>

subject to Section 3.5.1 and (b) all Options, Warrants and Convertible
Securities that were Transferred to such Other Holder in a transaction subject
to Section 3.5.1, treating such Options, Warrants and Convertible Securities as
a number of Other Holder Shares equal to the maximum number of shares of Stock
for which or into which such Options, Warrants or Convertible Securities may at
the time be exercised, converted or exchanged (or which will become exercisable,
convertible or exchangeable on or prior to, or by reason of, the transaction or
circumstance in connection with which the number of Other Holder Shares is to be
determined).

      "Other Holders" shall have the meaning set forth in the Preamble.

      "Other Securities" shall have the meaning set forth in Section 2.1.3.

      "Parity Shares" shall have the meaning set forth in Section 3.3.1.

      "Participating Buyer" shall have the meaning set forth in Section
2.1.2(a).

      "Participation Notice" shall have the meaning set forth in Section 2.1.1.

      "Participation Offerees" shall have the meaning set forth in Section
2.1.1.

      "Participation Portion" shall have the meaning set forth in Section 2.1.1.

      "Participation Shares" shall mean all Shares held by an Investor and all
Vested Purchased and Roll-Over Shares held by a Manager or Manager Designee.

      "Permitted Registration Rights Assignee" shall have the meaning set forth
in Section 3.5.1.

      "Permitted Transferee" shall mean, in respect of any Investor, any
Affiliated Fund of such Investor, and, in respect of any Manager or Manager
Designee, any Family Member of such Manager or Manager Designee, in each case to
the extent such Person agrees to be bound by the terms of this Agreement and the
Stockholders Agreement, as applicable. In addition, any Stockholder shall be a
Permitted Transferee of the Permitted Transferees of itself.

      "Person" shall mean any individual, partnership, corporation, company,
association, trust, joint venture, limited liability company, unincorporated
organization, entity or division, or any government, governmental department or
agency or political subdivision thereof.

      "Preferred Stock" shall mean the 10% Cumulative Preferred Stock, par value
$.001 per share, of Midco.

      "Price Per Equivalent Share" shall mean the Board's good faith
determination of the price per Equivalent Share of any Convertible Securities or
Options which are the subject of an Issuance pursuant to Section 2 hereof.

      "Principal Lock-Up Agreement" shall have the meaning set forth in Section
5 of the Stockholders Agreement.

                                                                            -27-

<PAGE>

      "Principal Participating Holders" shall mean, with respect to any Public
Offering, (i) the two holders (determined in accordance with Section 3.3.1)
including the greatest number of Registrable Securities in such Public Offering,
(ii) if there are more than two such holders including the greatest number of
Registrable Securities in such Public Offering, all of such holders and (iii) if
there is only one such holder including any Registrable Securities in such
Public Offering, such holder. Where this Agreement provides for the vote,
consent or approval of the Principal Participating Holders, such vote, consent
or approval shall be required of each such holder as identified in the preceding
sentence.

      "Pro Rata Portion" shall mean for purposes of Section 3.3, with respect to
each holder of Registrable Securities or Parity Shares requesting that such
shares be registered in such registration statement, a number of such shares
equal to the aggregate number of shares of Common Stock to be registered in such
registration (excluding any shares to be registered for the account of the
Company) multiplied by a fraction, the numerator of which is the aggregate
number of Registrable Securities and Parity Shares held by such holder, and the
denominator of which is the aggregate number of Registrable Securities and
Parity Shares held by all holders requesting that their Registrable Securities
or Parity Shares be registered in such registration.

      "Prospective Buyer" shall mean any Person proposing to purchase or
otherwise shares from a Prospective Selling Stockholder.

      "Prospective Subscriber" shall have the meaning set forth in Section
2.1.1.

      "Public Offering" shall mean a public offering and sale of Common Stock
for cash pursuant to an effective registration statement under the Securities
Act.

      "Purchase Price Value" shall mean: (a) $1.00, in the case of a share of
Class A Stock, (b) $81.00, in the case of a share of Class L Stock and (c)
$100.00, in the case of a share of Preferred Stock, in each case appropriately
adjusted for any stock split, stock dividend, combination, recapitalization or
the like involving such class.

      "Purchased and Roll-Over Shares" shall mean (a) all shares of Stock held
by a Manager or Manager Designee that were purchased by the original holder
thereof on or before the Closing Date or upon the exercise, conversion or
exchange of Options described in clause (b) hereof, (b) all Options for shares
of Stock held by a Manager, which were received by such Manager on the Closing
Date in connection with the roll-over of his or her deal bonus from OpCo,
treating such Options as a number of Purchased and Roll-Over Shares equal to the
maximum number of shares of Stock for which such Options may be exercised, and
(c) all Shares held by a Manager or Manager Designee that are designated as
Purchased and Roll-Over Shares by the Requisite Stockholder Majority.

      "Purchaser" shall have the meaning set forth in the Recitals.

      "Registrable Securities" shall mean (a) all shares of Class A-4 Stock, (b)
all shares of Class A-4 Stock issuable upon conversion of shares of Class A-1
Stock, Class A-2 Stock, Class A-3 Stock or Class L Stock, (c) all shares of
Class A-4 Stock issuable upon exercise, conversion or exchange of any Option,
Warrant or Convertible Security and (d) all shares of Class A-4 Stock directly
or indirectly issued or issuable with respect to the securities referred to in
clauses

                                                                            -28-

<PAGE>

(a), (b) or (c) above by way of stock dividend or stock split or in connection
with a combination of shares, recapitalization, merger, consolidation or other
reorganization, in each case constituting Participation Shares or Other Holder
Shares. As to any particular Registrable Securities, such shares shall cease to
be Registrable Securities when (i) such securities shall have ceased to be
Participation Shares or Other Holder Shares hereunder, (ii) a registration
statement with respect to the sale of such securities shall have become
effective under the Securities Act and such securities shall have been disposed
of in accordance with such registration statement, (iii) such securities shall
have been Transferred pursuant to Rule 144 or Rule 145, (iv) disposition of such
securities may be made by the Holder thereof under Rule 144 or 145 and the
holder of such securities holds no more than one percent of the shares of the
applicable class outstanding as shown by the most recent report or statement
published by the Company, (v) subject to the provisions of Section 6.2 hereof,
such securities shall have been otherwise transferred to a Person that is not an
Affiliate of the transferor, new certificates for them not bearing a legend
restricting further transfer shall have been delivered by the Company as part of
such transfer and subsequent disposition of them shall not require registration
of them under the Securities Act and such securities may be distributed without
volume limitation or other restrictions on transfer under Rule 144 or Rule 145
(including without application of paragraphs (c), (e) (f) and (h) of Rule 144),
(vi) such securities shall have ceased to be outstanding or (vii) the holder
thereof shall have withdrawn from this Agreement pursuant to Section 6.3.

      "Registration Expenses" means any and all expenses incident to performance
of or compliance with Section 3 of this Agreement (other than underwriting
discounts and commissions paid to underwriters and transfer taxes, if any),
including (a) all Commission and securities exchange or NASD registration and
filing fees, (b) all fees and expenses of complying with securities or blue sky
laws (including reasonable fees and disbursements of counsel for the
underwriters in connection with blue sky qualifications of the Registrable
Securities), (c) all printing, messenger and delivery expenses, (d) all fees and
expenses incurred in connection with the listing of the Registrable Securities
on any securities exchange or NASD pursuant to Section 3.3.2(g) and all rating
agency fees, (e) the fees and disbursements of counsel for the Company and of
its independent public accountants, including the expenses of any special audits
and/or "cold comfort" letters required by or incident to such performance and
compliance, (f) the reasonable fees and disbursements of one counsel for the
Holders selected pursuant to the terms of Section 3, (g) any fees and
disbursements customarily paid by the issuers of securities, and (h) expenses
incurred in connection with any road show (including the reasonable
out-of-pocket expenses of the Holders).

      "Requisite Stockholder Majority" shall mean at any time the approval of
(a) each of at least two Investor Groups if there is more than one Investor
Group, (b) a single Investor Group if there is only one Investor Group and (c)
otherwise, Investors holding a majority of the outstanding Class A Stock
constituting Shares then held by all Investors.

      "Rule 144" shall mean Rule 144 under the Securities Act (or any successor
Rule).

      "Rule 145" shall mean Rule 145 under the Securities Act (or any successor
Rule).

      "Rule 145 Transaction" shall mean a registration on Form S-4 (or any
successor Form) pursuant to Rule 145.

                                                                            -29-

<PAGE>

      "Sale" shall mean a Transfer for value and the terms "Sell" and "Sold"
shall have correlative meanings.

      "Securities Act" shall mean the Securities Act of 1933, as in effect from
time to time.

      "Shares" shall mean (a) all shares of Stock held by a Stockholder,
whenever issued, including all shares of Stock issued upon the exercise,
conversion or exchange of any Options, Warrants or Convertible Securities and
(b) all Options, Warrants and Convertible Securities held by a Stockholder
(treating such Options, Warrants and Convertible Securities as a number of
Shares equal to the number of Equivalent Shares represented by such Options,
Warrants and Convertible Securities for all purposes of this Agreement except as
otherwise specifically set forth herein).

      "Silver Lake Investors" shall mean, as of any date, Silver Lake Partners,
L.P., Silver Lake Investors, L.P., Silver Lake Technology Investors, L.L.C. and
Integral Capital Partners VI, L.P., and their respective Permitted Transferees,
in each case only if such Person is then a Stockholder and holds any Shares.

      "Stock" shall mean the Common Stock and the Preferred Stock.

      "Stockholders" shall have the meaning set forth in the Stockholders
Agreement.

      "Stockholders Agreement" shall have the meaning set forth in the Recitals.

      "Subject Securities" shall have the meaning set forth in Section 2.

      "Transfer" shall mean any sale, pledge, assignment, encumbrance or other
transfer or disposition of any Shares or Other Holder Shares to any other
Person, whether directly, indirectly, voluntarily, involuntarily, by operation
of law, pursuant to judicial process or otherwise.

      "Unvested Incentive Shares" shall mean, with respect to a Manager or
Manager Designee at any time, the Management Shares that are Incentive Shares
held by such Manager or Manager Designee which remain subject to vesting
requirements at such time.

      "Unvested Purchased and Roll-Over Shares" shall mean, with respect to a
Manager or Manager Designee at any time, the Management Shares that are
Purchased and Roll-Over Shares held by such Manager or Manager Designee which
remain subject to vesting requirements at such time.

      "Unvested Shares" shall mean, at any time, all Management Shares that are
Unvested Incentive Shares or Unvested Purchased and Roll-Over Shares at such
time.

      "Vested Incentive Shares" shall mean, with respect to a Manager or Manager
Designee at any time, the Management Shares that are Incentive Shares held by
such Manager or Manager Designee which are fully vested at such time.

                                                                            -30-

<PAGE>

      "Vested Purchased and Roll-Over Shares" shall mean, with respect to a
Manager or Manager Designee at any time, the Management Shares that are
Purchased and Roll-Over Shares held by such Manager or Manager Designee which
are fully vested at such time; provided, that upon any termination of employment
of the Manager associated with such Purchased and Roll-Over Shares by the
Company and its subsidiaries other than for Cause, all of the Purchased and
Roll-Over Shares associated with such Manager shall automatically vest in
accordance with the terms of any restricted stock agreement, award or plan that
governs such Purchased and Roll-Over Shares.

      "Vested Shares" shall mean, at any time, all Shares that are not
Management Shares or are Management Shares that are Vested Incentive Shares or
Vested Purchased and Roll-Over Shares at such time.

      "Warburg Pincus Investors" shall mean, as of any date, Warburg Pincus
Private Equity VIII, L.P., Warburg Pincus Netherlands Private Equity VIII I,
C.V., Warburg Pincus Netherlands Private Equity VIII II, C.V., Warburg Pincus
Germany Private Equity VIII K.G., Warburg Pincus International Partners, L.P.,
Warburg Pincus Netherlands International Partners I, C.V., Warburg Pincus
Netherlands International Partners II, C.V. and Warburg Pincus Germany
International Partners, K.G. and their respective Permitted Transferees, in each
case only if such Person is then a Stockholder and holds any Shares.

      "Warrants" shall mean any warrants to subscribe for, purchase or otherwise
directly acquire Stock.

      "Withdrawing Holders" shall have the meaning set forth in Section 6.3.

8.    MISCELLANEOUS.

      8.1. Authority: Effect. Each party hereto represents and warrants to and
agrees with each other party that the execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby have been duly
authorized on behalf of such party and do not violate any agreement or other
instrument applicable to such party or by which its assets are bound. This
Agreement does not, and shall not be construed to, give rise to the creation of
a partnership among any of the parties hereto, or to constitute any of such
parties members of a joint venture or other association. The Company and Midco
shall be jointly and severally liable for all obligations of each such party
pursuant to this Agreement.

      8.2. Notices. Any notices and other communications required or permitted
in this Agreement shall be effective if in writing and (a) delivered personally,
(b) sent by facsimile, or (c) sent by overnight courier, in each case, addressed
as follows:

      If to the Company, Midco, Holdings or OpCo, to it:

                  c/o UGS Corp.
                  13690 Riverport Drive
                  Maryland Heights, Missouri 63043
                  Facsimile: (314) 264-8913
                  Attention: Anthony J. Affuso

                                                                            -31-

<PAGE>

      with copies to:

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

      If to a Bain Investor, to it:

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

      with copies to:

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

      If to a Silver Lake Investor, to it:

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

      with copies to:

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

      If to a Warburg Pincus Investor, to it:

                  c/o Warburg Pincus LLC

                                                                            -32-

<PAGE>

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

      with copies to:

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

      Notice to the holder of record of any shares of capital stock shall be
deemed to be notice to the holder of such shares for all purposes hereof.

      Unless otherwise specified herein, such notices or other communications
shall be deemed effective (a) on the date received, if personally delivered, (b)
on the date received if delivered by facsimile on a business day, or if not
delivered on a business day, on the first business day thereafter and (b) two
business days after being sent by overnight courier. Each of the parties hereto
shall be entitled to specify a different address by giving notice as aforesaid
to each of the other parties hereto.

      8.3. Binding Effect, Etc. Except for restrictions on the Transfer of
Shares set forth in other written agreements, plans or documents, and except for
other written agreements dated on or about the date of this Agreement, this
Agreement constitutes the entire agreement of the parties with respect to its
subject matter, supersedes all prior or contemporaneous oral or written
agreements or discussions with respect to such subject matter, and shall be
binding upon and inure to the benefit of the parties hereto and their respective
heirs, representatives, successors and permitted assigns. Except as otherwise
expressly provided herein, no Investor or other party hereto may assign any of
its respective rights or delegate any of its respective obligations under this
Agreement without the prior written consent of the other parties hereto, and any
attempted assignment or delegation in violation of the foregoing shall be null
and void.

      8.4. Descriptive Heading. The descriptive headings of this Agreement are
for convenience of reference only, are not to be considered a part hereof and
shall not be construed to define or limit any of the terms or provisions hereof.

      8.5. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one instrument.

      8.6. Severability. In the event that any provision hereof would, under
applicable law, be invalid or unenforceable in any respect, such provision shall
be construed by modifying or limiting it so as to be valid and enforceable to
the maximum extent compatible with, and possible under, applicable law. The
provisions hereof are severable, and in the event any provision hereof

                                                                            -33-

<PAGE>

should be held invalid or unenforceable in any respect, it shall not invalidate,
render unenforceable or otherwise affect any other provision hereof.

      8.7. No Recourse. Notwithstanding anything that may be expressed or
implied in this Agreement, the Company and each Investor covenant, agree and
acknowledge that no recourse under this Agreement or any documents or
instruments delivered in connection with this Agreement shall be had against any
current or future director, officer, employee, general or limited partner or
member of any Investor or of any Affiliate or assignee thereof, as such, whether
by the enforcement of any assessment or by any legal or equitable proceeding, or
by virtue of any statute, regulation or other applicable law, it being expressly
agreed and acknowledged that no personal liability whatsoever shall attach to,
be imposed on or otherwise be incurred by any current or future officer, agent
or employee of any Investor or any current or future member of any Investor or
any current or future director, officer, employee, partner or member of any
Investor or of any Affiliate or assignee thereof, as such, for any obligation of
any Investor under this Agreement or any documents or instruments delivered in
connection with this Agreement for any claim based on, in respect of or by
reason of such obligations or their creation.

      8.8. Aggregation of Shares. All Shares held by an Investor and its
Affiliates shall be aggregated together for purposes of determining the
availability of any rights under Sections 3 and 6. Within any Investor Group,
the Investors may allocate the ability to exercise any rights under this
Agreement in any manner that such Investor Group (by a Majority in Interest of
the Shares held by such Investor Group) sees fit.

      8.9. Obligations of Company, Midco, Holdings and OpCo. Each of the
Company, Midco, Holdings and OpCo shall be jointly and severally liable for any
payment obligation of any of the Company, Midco, Holdings or OpCo pursuant to
this Agreement.

9.    GOVERNING LAW.

      9.1. Governing Law. This Agreement and all claims arising out of or based
upon this Agreement or relating to the subject matter hereof shall be governed
by and construed in accordance with the domestic substantive laws of the State
of Delaware without giving effect to any choice or conflict of laws provision or
rule that would cause the application of the domestic substantive laws of any
other jurisdiction.

      9.2. Consent to Jurisdiction. Each party to this Agreement, by its
execution hereof, (a) hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the State of Delaware for the purpose
of any action, claim, cause of action or suit (in contract, tort or otherwise),
inquiry, proceeding or investigation arising out of or based upon this Agreement
or relating to the subject matter hereof, (b) hereby waives to the extent not
prohibited by applicable law, and agrees not to assert, and agrees not to allow
any of its subsidiaries to assert, by way of motion, as a defense or otherwise,
in any such action, any claim that it is not subject personally to the
jurisdiction of the above-named courts, that its property is exempt or immune
from attachment or execution, that any such proceeding brought in one of the
above-named courts is improper, or that this Agreement or the subject matter
hereof or thereof may not be enforced in or by such court and (c) hereby agrees
not to commence or maintain any action,

                                                                            -34-

<PAGE>

claim, cause of action or suit (in contract, tort or otherwise), inquiry,
proceeding or investigation arising out of or based upon this Agreement or
relating to the subject matter hereof or thereof other than before one of the
above-named courts nor to make any motion or take any other action seeking or
intending to cause the transfer or removal of any such action, claim, cause of
action or suit (in contract, tort or otherwise), inquiry, proceeding or
investigation to any court other than one of the above-named courts whether on
the grounds of inconvenient forum or otherwise. Notwithstanding the foregoing,
to the extent that any party hereto is or becomes a party in any litigation in
connection with which it may assert indemnification rights set forth in this
agreement, the court in which such litigation is being heard shall be deemed to
be included in clause (a) above. Notwithstanding the foregoing, any party to
this Agreement may commence and maintain an action to enforce a judgment of any
of the above-named courts in any court of competent jurisdiction. Each party
hereto hereby consents to service of process in any such proceeding in any
manner permitted by Delaware law, and agrees that service of process by
registered or certified mail, return receipt requested, at its address specified
pursuant to Section 8.2 hereof is reasonably calculated to give actual notice.

      9.3. WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW
WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND COVENANTS THAT IT
WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO
TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF
ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR
INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER
HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS
CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING.
EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES
HERETO THAT THIS SECTION 9.3 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY
ARE RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT. ANY PARTY HERETO MAY
FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 9.3 WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO
TRIAL BY JURY.

      9.4. Exercise of Rights and Remedies. No delay of or omission in the
exercise of any right, power or remedy accruing to any party as a result of any
breach or default by any other party under this Agreement shall impair any such
right, power or remedy, nor shall it be construed as a waiver of or acquiescence
in any such breach or default, or of any similar breach or default occurring
later; nor shall any such delay, omission nor waiver of any single breach or
default be deemed a waiver of any other breach or default occurring before or
after that waiver.

                            [Signature pages follow]

                                                                            -35-

<PAGE>

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

THE COMPANY:                         UGS CAPITAL CORP.

                                                  *
                                     _________________________________
                                     Douglas E. Barnett
                                     Executive Vice President

MIDCO:                               UGS CAPITAL CORP.  II

                                                  *
                                     _________________________________
                                     Douglas E. Barnett
                                     Executive Vice President

HOLDINGS:                            UGS HOLDINGS, INC.

                                                  *
                                     _________________________________
                                     Douglas E. Barnett
                                     Executive Vice President

ACQUISITIONCO:                       UGS CORP.

                                                  *
                                     _________________________________
                                     Douglas E. Barnett
                                     Executive Vice President

*   The signature appearing immediately below shall serve as a signature at each
    place indicated with an "*" on the two pages above:

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

Participation and Registration Rights Agreement
<PAGE>

THE INVESTORS:                   BAIN CAPITAL INTEGRAL INVESTORS, LLC
                                 By: Bain Capital Investors, LLC
                                     its administrative member

                                                        *
                                     __________________________________________
                                     Andrew Balson
                                     Managing Director

                                 BAIN CAPITAL VII COINVESTMENT FUND, LLC
                                 By: Bain Capital VII Coinvestment Fund, L.P.,
                                     its sole member
                                 By: Bain Capital Partners VII, L.P.,
                                     its general partner
                                 By: Bain Capital Investors, LLC,
                                     its general partner

                                                        *
                                     __________________________________________
                                     Andrew Balson
                                     Managing Director

                                 BCIP TCV, LLC
                                 By: Bain Capital Investors, LLC
                                     its administrative member

                                                        *
                                     __________________________________________
                                     Andrew Balson
                                     Managing Director

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

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

Participation and Registration Rights Agreement
<PAGE>

                                SILVER LAKE PARTNERS, L.P.
                                By: Silver Lake Technology Associates, L.L.C.
                                    its General Partner

                                                        *
                                    _________________________________________
                                    Kenneth Y. Hao
                                    Managing Director

                                SILVER LAKE INVESTORS, L.P.
                                By: Silver Lake Technology Associates, L.L.C.
                                    its General Partner

                                                        *
                                    _________________________________________
                                    Kenneth Y. Hao
                                    Managing Director

                                SILVER LAKE TECHNOLOGY INVESTORS, L.L.C.
                                By: Silver Lake Technology Management, L.L.C.
                                    its Manager

                                                        *
                                    _________________________________________
                                    Kenneth Y. Hao
                                    Managing Director

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

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

Participation and Registration Rights Agreement
<PAGE>

                                INTEGRAL CAPITAL PARTNERS VI, L.P.
                                By: Integral Capital Management VI, LLC
                                    its General Partner

                                By: /s/ Pamela K. Hagenah
                                    -------------------------
                                    Pamela K. Hagenah
                                    Manager

Participation and Registration Rights Agreement
<PAGE>

                                     WARBURG PINCUS PRIVATE EQUITY VIII, L.P.
                                     By: Warburg Pincus & Co.
                                         its General Partner

                                                                *
                                         ____________________________________
                                         Gregory F. Back
                                         Partner

                                     WARBURG PINCUS NETHERLANDS PRIVATE
                                     EQUITY VIII I, C.V.
                                     By: Warburg Pincus & Co.
                                         its General Partner

                                                                *
                                         ____________________________________
                                         Gregory F. Back
                                         Partner

                                     WARBURG PINCUS NETHERLANDS PRIVATE
                                     EQUITY VIII II, C.V.
                                     By: Warburg Pincus & Co.
                                         its General Partner

                                                                *
                                         ____________________________________
                                         Gregory F. Back
                                         Partner

                                     WARBURG PINCUS GERMANY PRIVATE EQUITY
                                     VIII K.G.
                                     By: Warburg Pincus & Co.
                                         its General Partner

                                                                *
                                         ____________________________________
                                         Gregory F. Back
                                         Partner

Participation and Registration Rights Agreement
<PAGE>

                                    WARBURG PINCUS INTERNATIONAL PARTNERS, L.P.
                                    By: Warburg Pincus & Co.
                                        its General Partner

                                                               *
                                        _______________________________________
                                        Gregory F. Back
                                        Partner

                                    WARBURG PINCUS NETHERLANDS
                                    INTERNATIONAL PARTNERS I, C.V.
                                    By: Warburg Pincus & Co.
                                        its General Partner

                                                               *
                                        _______________________________________
                                        Gregory F. Back
                                        Partner

                                    WARBURG PINCUS NETHERLANDS
                                    INTERNATIONAL PARTNERS II, C.V.
                                    By: Warburg Pincus & Co.
                                        its General Partner

                                                               *
                                        _______________________________________
                                        Gregory F. Back
                                        Partner

                                    WARBURG PINCUS GERMANY INTERNATIONAL
                                    PARTNERS, K.G.
                                    By: Warburg Pincus & Co.
                                        its General Partner

                                                               *
                                        _______________________________________
                                        Gregory F. Back
                                        Partner

Participation and Registration Agreement

<PAGE>

 *   The signature appearing immediately below shall serve as a signature at
     each place indicated with an "*" on the two pages above:

                                            /s/ Gregory F. Back
                                            -----------------------
                                            Gregory F. Back
                                            Partner

Participation and Registration Agreement
<PAGE>

THE MANAGER
DESIGNEES:                                  THE ANTHONY JAMES AFFUSO AND
                                            LORRAINE PERKINS AFFUSO
                                            REVOCABLE TRUST

                                            /s/ Anthony James Affuso
                                            -----------------------------
                                            Anthony James Affuso
                                            Co-Trustee

                                            /s/ Lorraine Perkins Affuso
                                            -----------------------------
                                            Lorraine Perkins Affuso
                                            Co-Trustee

Participation and Registration Agreement
<PAGE>

                                   SCHEDULE I
                               HOLDINGS OF SHARES

<TABLE>
<CAPTION>
                                                   CLASS A        CLASS L       PREFERRED   CLASS A   CLASS L     PREFERRED
                STOCKHOLDER                     COMMON STOCK    COMMON STOCK      STOCK     OPTIONS   OPTIONS      OPTIONS
-------------------------------------------     -------------   ------------    ----------  -------   --------    --------
<S>                                             <C>             <C>             <C>         <C>       <C>         <C>
Bain Capital Integral Investors, LLC            21,372,116.03   2,355,682.49    529,100.05     -             -           -
Bain Capital VII Coinvestment Fund, LLC          6,000,000.00     666,666.66    150,000.00     -             -           -
BCIP TCV, LLC                                      147,884.00      35,428.62      8,899.94     -             -           -
Silver Lake Partners, L.P.                      26,078,366.28   2,897,596.25    651,959.16     -             -           -
Silver Lake Investors, L.P.                        733,819.35      81,535.48     18,345.49     -             -           -
Silver Lake Technology Investors, L.L.C.           157,414.40      17,490.49      3,935.35     -             -           -
Integral Capital Partners VI, L.P.                 550,400.00      61,155.55     13,759.99     -             -           -
Warburg Pincus Private Equity VIII, L.P.        13,334,831.49   1,481,647.95    333,370.78     -             -           -
Warburg Pincus Netherlands Private
Equity VIII I, C.V.                                226,756.55      25,195.17      5,668.91     -             -           -
Warburg Pincus Netherlands Private
Equity VIII II, C.V.                               159,760.30      17,751.14      3,994.01     -             -           -
Warburg Pincus Germany Private
Equity VIII K.G.                                    38,651.68       4,294.63        966.29     -             -           -
Warburg Pincus International Partners, L.P.     13,189,235.21   1,465,470.58    329,730.88     -             -           -
Warburg Pincus Netherlands International
Partners I, C.V.                                   330,240.00      36,693.33      8,256.00     -             -           -
Warburg Pincus Netherlands International
Partners II, C.V.                                  220,160.00      24,462.22      5,504.00     -             -           -
Warburg Pincus Germany International
Partners, K.G.                                      20,364.80       2,262.75        509.12     -             -           -
Anthony J. Affuso                                   76,000.00              -             -     -      8,444.44    1,900.00
Charles Grindstaff                                  22,000.00              -             -     -      2,444.44      550.00
Steve Bashada                                        9,044.00              -             -     -      1,004.89      226.10
Robert Nierman                                      16,720.00              -             -     -      1,857.78      418.00
Hans-Kurt Luebberstedt                              18,400.00              -             -     -      2,044.44      460.00
James Duncan                                         2,880.00              -             -     -        320.00       72.00
Tony L. Hemmelgarn                                   4,000.00              -             -     -        444.44      100.00
Haruyoshi Iida (RSL)                                 9,600.00              -             -     -      1,066.67      240.00
Daniel Malliet                                       9,880.00              -             -     -      1,097.78      247.00
William A. Carrelli                                    950.00              -             -     -        105.56       23.75
Rich Ramsey                                          2,400.00              -             -     -        266.67       60.00
</TABLE>

                                      -1-

<PAGE>

<TABLE>
<CAPTION>
                                                   CLASS A        CLASS L       PREFERRED      CLASS A    CLASS L    PREFERRED
                 STOCKHOLDER                    COMMON STOCK    COMMON STOCK      STOCK        OPTIONS    OPTIONS     OPTIONS
---------------------------------------------   -------------   ------------    ------------   -------   ---------   ---------
<S>                                             <C>             <C>             <C>            <C>       <C>         <C>
Donald Vogt                                            950.00              -               -      -         105.56      23.75
Donald Vossler                                       3,800.00              -               -      -         422.22      95.00
W. Michael White                                     2,000.00              -               -      -         222.22      50.00
Thomas Lemberg                                      12,000.00       1,333.33          300.00      -              -          -
Douglas E. Barnett                                  20,000.00       2,222.22          500.00      -              -          -
The Anthony James Affuso and Lorraine Perkins
Affuso Revocable Trust                              12,000.00       1,333.33          300.00      -              -          -

TOTAL                                           82,782,624.09   9,178,222.20    2,065,099.97      -      19,847.11   4,465.60
</TABLE>

Participation and Registration Rights Agreement

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