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EXHIBIT 10.63

AMENDMENT NUMBER THREE TO
LOAN AND SECURITY AGREEMENT

    THIS AMENDMENT NUMBER THREE TO LOAN AND SECURITY AGREEMENT (this
"Amendment"), is entered into as of May  , 2001, between FOOTHILL CAPITAL
CORPORATION, a California corporation, ("Foothill"), and NETWORK COMPUTING
DEVICES, INC., a Delaware corporation ("Borrower"), with reference to the
following facts:

    WHEREAS, Foothill and Borrower are parties to that certain Loan and Security
Agreement, dated as of March 30, 2000 (as amended, restated, or modified from
time to time, the "Agreement");

    WHEREAS, Borrower has requested that Foothill, make certain changes to the
Agreement; and

    WHEREAS, Foothill is willing to consent to these certain changes and take
other actions with respect to the Agreement, all on the terms and conditions set
forth herein.

    NOW, THEREFORE, in consideration of the above recitals and the mutual
promises contained herein, Foothill and Borrower hereby agree as follows:

1.  Defined Terms.  All capitalized terms used herein and not otherwise defined
herein shall have the meanings ascribed to them in the Agreement, as amended
hereby.

2.  Amendments to the Agreement.  

    (a)  Section 1.1  of the Agreement hereby is amended by adding or amending
and restating, as applicable, the following defined terms in the proper
alphabetical order:

    "Maturity Date" has the meaning set forth in Section 3.4.

    "Obligations" means all loans, Advances, debts, principal, interest
(including any interest that, but for the provisions of the Bankruptcy Code,
would have accrued), premiums, liabilities (including all amounts charged to
Borrower's Loan Account pursuant hereto), obligations, the Second Amendment Fee,
the Third Amendment Fee, any other fees, charges, costs, or Foothill Expenses
(including any fees or expenses that, but for the provisions of the Bankruptcy
Code, would have accrued), lease payments, guaranties, covenants, and duties
owing by Borrower to Foothill of any kind and description (whether pursuant to
or evidenced by the Loan Documents or pursuant to any other agreement between
Foothill and Borrower, and irrespective of whether for the payment of money),
whether direct or indirect, absolute or contingent, due or to become due, now
existing or hereafter arising, and including any debt, liability, or obligation
owing from Borrower to others that Foothill may have obtained by assignment or
otherwise, and further including all interest not paid when due and all Foothill
Expenses that Borrower is required to pay or reimburse by the Loan Documents, by
law, or otherwise.

    "Second Amendment" means that certain Amendment Number Two to Loan and
Security Agreement, dated as of May 14, 2001 between Borrower and Foothill.

    "Second Amendment Fee" means an amendment fee of $150,000 in consideration
for Foothill entering into the Second Amendment, which fee shall be fully earned
as of the effectiveness of the Second Amendment, but which fee shall be payable
in cash in installments of (i) $12,500 on the first day of May, 2001, June,
2001, July, 2001 and August, 2001 and (ii) $100,000 on the earlier to occur of
(i) August 15, 2001 or (ii) the date on which the Agreement is terminated by the
provisions of either Section 3.6 or Section 3.7 of the Agreement. This
definition amends Section 5 of the Second Amendment.

    "Third Amendment" means that certain Amendment Number Three to Loan and
Security Agreement, dated as of May  , 2001, between Borrower and Foothill.

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    "Third Amendment Closing Date" means the date that all conditions set forth
in Section 5 of the Third Amendment have been satisfied.

    "Third Amendment Fee" has the meaning ascribed thereto in Section 4 of the
Third Amendment.

    (b)  Section 1.1  of the Agreement hereby is amended by deleting the
following defined terms:

    The defined terms "Applicable Prepayment Premium" and "Early Termination
Premium" are hereby deleted from the Agreement. All references to "Applicable
Prepayment Premium" and "Early Termination Premium" throughout the Agreement
hereby shall be deleted.

    (c)  Section 2.6(a)  of the Agreement hereby is amended and restated in its
entirety as follows:

    (a) Interest Rate. Except as provided in clause (c) below, (i) all
Obligations shall bear interest at a per annum rate of 2.75 percentage points
above the Base Rate.

    (d)  Section 3.4  of the Agreement is amended and restated in its entirety
as follows:

    3.4  Term.  This Agreement shall become effective upon the execution and
delivery hereof by Borrower and Foothill and shall continue in full force and
effect for a term ending on August 15, 2001 (the "Maturity Date"). The foregoing
notwithstanding, Foothill shall have the right to terminate its obligations
under this Agreement immediately and without notice upon the occurrence and
during the continuation of an Event of Default.

    (e)  Section 3.6  of the Agreement is amended and restated in its entirety
as follows:

    3.6  Early Termination by Borrower.  The provisions of Section 3.4 to the
contrary notwithstanding, Borrower has the option, at any time upon 5 days prior
written notice to Foothill, to terminate this Agreement by paying to Foothill,
in cash, the Obligations (except for the Third Amendment Fee).

    (f)  Section 3.7  of the Agreement is amended and restated in its entirety
as follows:

    3.7  Termination Upon Event of Default.  If Foothill terminates this
Agreement upon the occurrence of an Event of Default, in view of the
impracticability and extreme difficulty of ascertaining actual damages and by
mutual agreement of the parties as to a reasonable calculation of Foothill's
lost profits as a result thereof, Borrower shall pay to Foothill upon the
effective date of such termination, a premium in an amount equal to the Third
Amendment Fee. The Third Amendment Fee shall be presumed to be the amount of
damages sustained by Foothill as the result of the early termination and
Borrower agrees that it is reasonable under the circumstances currently
existing.

3.  Representations and Warranties.  Borrower hereby represents and warrants to
Foothill that:

    (a) the execution, delivery, and performance of this Amendment and of the
Agreement, as amended by this Amendment, are within its corporate powers, have
been duly authorized by all necessary corporate action, and are not in
contravention of any law, rule, or regulation, or any order, judgment, decree,
writ, injunction, or award of any arbitrator, court, or governmental authority,
or of the terms of its charter or bylaws, or of any contract or undertaking to
which it is a party or by which any of its properties may be bound or affected,

    (b) this Amendment and the Agreement, as amended by this Amendment,
constitute Borrower's legal, valid, and binding obligation, enforceable against
Borrower in accordance with its terms, and

    (c) this Amendment has been duly executed and delivered by Borrower.

4.  Amendment Fee.  Borrower shall pay to Foothill an amendment fee of $100,000
(the "Third Amendment Fee"), which fee shall be fully earned as of the
effectiveness of this Amendment; provided, however, that if the Borrower shall
fully pay in cash all of the Obligations (except for the Third Amendment Fee) no
later than August 15, 2001, then the Third Amendment Fee shall be waived by
Foothill. If all of the Obligations (except for the Third Amendment Fee) are not
fully paid in cash by

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August 15, 2001, then Borrower shall pay Foothill in cash the Third Amendment
Fee as of August 16, 2001. Notwithstanding the foregoing, if Foothill shall
exercise the termination provisions in Section 3.7 of the Agreement, then
Borrower shall pay Foothill the Third Amendment Fee on the date that Foothill
exercises its rights under Section 3.7 of the Agreement.

5.  Conditions Precedent to Amendment.  The satisfaction of each of the
following shall constitute conditions precedent to the effectiveness of this
Amendment:

    (a) Foothill shall have received the reaffirmation and consent attached
hereto as Exhibit A, duly executed and delivered by an authorized officer of
each Guarantor;

    (b) The representations and warranties in this Amendment, the Agreement as
amended by this Amendment, and the other Loan Documents shall be true and
correct in all respects on and as of the date hereof, as though made on such
date (except to the extent that such representations and warranties relate
solely to an earlier date);

    (c) No Event of Default or event which with the giving of notice or passage
of time would constitute an Event of Default shall have occurred and be
continuing on the date hereof, nor shall result from the consummation of the
transactions contemplated herein;

    (d) No injunction, writ, restraining order, or other order of any nature
prohibiting, directly or indirectly, the consummation of the transactions
contemplated herein shall have been issued and remain in force by any
governmental authority against Borrower or Foothill; and

    (e) All other documents and legal matters in connection with the
transactions contemplated by this Amendment shall have been delivered or
executed or recorded and shall be in form and substance satisfactory to Foothill
and its counsel.

6.  Waiver.  Foothill shall waive all of the Events of Default existing as of
the date hereof and listed on Exhibit B hereto.

7.  Miscellaneous.  

    (a) Upon the effectiveness of this Amendment, each reference in the
Agreement to "this Agreement", "hereunder", "herein", "hereof" or words of like
import referring to the Agreement shall mean and refer to the Agreement as
amended by this Amendment.

    (b) Upon the effectiveness of this Amendment, each reference in the Loan
Documents to the "Loan Agreement", "thereunder", "therein", "thereof" or words
of like import referring to the Agreement shall mean and refer to the Agreement
as amended by this Amendment.

    (c) This Amendment shall be governed by and construed in accordance with the
laws of the State of California.

    (d) This Amendment may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and
delivered, shall be deemed to be an original, and all of which, when taken
together, shall constitute but one and the same Amendment. Delivery of an
executed counterpart of this Amendment by telefacsimile shall be equally as
effective as delivery of a manually executed counterpart of this Amendment. Any
party delivering an executed counterpart of this Amendment by telefacsimile also
shall deliver a manually executed counterpart of this Amendment but the failure
to deliver a manually executed counterpart shall not affect the validity,
enforceability, and binding effect of this Amendment.

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

    NETWORK COMPUTING DEVICES, INC.,
a Delaware corporation
 
 
By:
 

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    Name:  

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    Title:  

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FOOTHILL CAPITAL CORPORATION,
a California corporation
 
 
By:
 

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    Name:  

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    Title:  

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Exhibit A

REAFFIRMATION AND CONSENT

    All capitalized terms used herein but not otherwise defined herein shall
have the meanings ascribed to them in that certain Amendment Number Three to
Loan and Security Agreement, dated as of May  , 2001 (the "Amendment"). The
undersigned hereby (a) represents and warrants to Foothill that the execution,
delivery, and performance of this Reaffirmation and Consent are within its
corporate powers, have been duly authorized by all necessary corporate action,
and are not in contravention of any law, rule, or regulation, or any order,
judgment, decree, writ, injunction, or award of any arbitrator, court, or
governmental authority, or of the terms of its charter or bylaws, or of any
contract or undertaking to which it is a party or by which any of its properties
may be bound or affected; (b) consents to the amendment of the Agreement by the
Amendment and to the transactions described therein; (c) acknowledges and
reaffirms its obligations owing to Foothill under the Guaranty and any other
Loan Documents to which it is a party; and (d) agrees that each of the Guaranty
and any other Loan Documents to which it is a party is and shall remain in full
force and effect. Although the undersigned has been informed of the matters set
forth herein and has acknowledged and agreed to same, it understands that
Foothill has no obligations to inform it of such matters in the future or to
seek its acknowledgement or agreement to future amendments, and nothing herein
shall create such a duty. Delivery of an executed counterpart of this
Reaffirmation and Consent by telefacsimile shall be equally as effective as
delivery of an original executed counterpart of this Reaffirmation and Consent.
Any party delivering an executed counterpart of this Reaffirmation and Consent
by telefacsimile also shall deliver an original executed counterpart of this
Reaffirmation and Consent but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect of
this Reaffirmation and Consent. This Reaffirmation and Consent shall be governed
by the laws of the State of California.

    AUSTRALIA, NETWORK COMPUTING
DEVICES (BENELUX) B.V., a company
organized under the laws of The Netherlands
 
 
By:
 

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    Name:  

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    Title:  

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NETWORK COMPUTING DEVICES
(CANADA), INC., a corporation organized under
the laws of Canada
 
 
By:
 

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    Name:  

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    Title:  

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NETWORK COMPUTING DEVICES
(FRANCE) S.A.R.L., a company organized
under the laws of France
 
 
By:
 

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    Name:  

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    Title:  

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NETWORK COMPUTING DEVICES, GMBH, a company organized under the laws of Germany
 
 
By:
 

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    Name:  

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    Title:  

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NCD GRAPHIC SOFTWARE CORPORATION, an Oregon corporation
 
 
By:
 

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    Name:  

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    Title:  

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NETWORK COMPUTING DEVICES (FSC), INC., a Guam corporation
 
 
By:
 

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    Name:  

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    Title:  

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NCD ACQUISITION CORP., an Indiana corporation
 
 
By:
 

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    Name:  

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    Title:  

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NETWORK COMPUTING DEVICES (UK),
LTD., a company organized under the laws of England
 
 
By:
 

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    Name:  

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    Title:  

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NETWORK COMPUTING DEVICES SCANDINAVIA AB, a company organized under the laws of
Sweden
 
 
By:
 

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    Name:  

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    Title:  

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EXHIBIT B

Waivers

    Foothill waives the following Events of Default:

    (1)  Section 8.1:  Borrower has failed to remit Collections in the amount of
$127,640 in February 2001 and $220,455 in March 2001 in violation of Section 2.7
of the Agreement. Borrower has failed to remit Collections in the months of
April and May 2001 as well, however these amounts have not yet been quantified.
This failure is also in violation of Section 2.7 of the Agreement.

    The item identified in paragraph (1) above also constitutes an Event of
Default under Section 8.3 of the Agreement.

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AMENDMENT NUMBER THREE TO LOAN AND SECURITY AGREEMENT
Exhibit A
EXHIBIT B