EXHIBIT 10.39

AMENDMENT #2
to the
Purchase of Equipment and Services Agreement
Between
Sprint/United Management Company
And
Hybrid Networks, Incorporated

    This is the Second Amendment ("Amendment 2") to the Purchase of Equipment
and Services Agreement ("Agreement") dated May 1, 2000, between Sprint/United
Management Company ("Sprint"), a Kansas corporation, with offices at 2330
Shawnee Mission Parkway, Westwood, Kansas 66205 and Hybrid Networks, Inc.
("Hybrid"), a Delaware corporation, with its principal offices at 6409 Guadalupe
Mines Road, San Jose, CA 95120.

    This Amendment 2 shall be effective (the "Effective Date") as of December
31, 2000.

    In order to facilitate the parties' working relationship, Sprint and Hybrid
have agreed to certain modifications of the Agreement and the December 22, 2000
Amendment to the Agreement ("Amendment 1"), as follows:

1.Notwithstanding anything else set forth in the Agreement or in Amendment #1,
the Warranty Period for all Equipment, shipped by Hybrid prior to the Effective
Date of this Amendment #2, shall be 18 months from the date of shipment. The
Warranty Period is independent of Substantial Completion and Final Acceptance of
any System, including but not limited to Sprint's Final Acceptance of the
Phoenix System (P.O. #1233953). In the case of Software, the Warranty Period is
90 days from the date of shipment by Hybrid to Sprint of the Software. Equipment
or Software that is corrected or replaced pursuant to warranty is warranted only
for the remaining portion of the original 18-month or original 90-day Warranty
Period, respectively.

2.All elements of "Project: SAM" noted on Schedule A to the May 1, 2000 High
Level Requirements letter specified in Paragraph 1.24 of the Agreement are
deleted from Schedule A and inserted instead in Schedule B to that May 1, 2000
High Level Requirements letter. The December, 2000 date for release of the SAM
Modem and Headend to Sprint for testing is deleted and instead, the "Project:
Sam" will be scheduled on a "best efforts" basis after further project, product
and business definition. Notwithstanding the foregoing and for the avoidance of
any doubt, moving "Project: Sam" from Schedule A to Schedule B does not impact
the pricing of any CPE Equipment, which is $195.00 per CPE Equipment as of
December 1, 2000.

3.If the Phoenix System does not achieve Final Acceptance on or prior to
December 31, 2001, Hybrid shall, at its sole option and discretion, either: (i)
issue a credit to Sprint against any then outstanding invoices and future
purchases in the amount of $661,640.65; or (ii) pay to Sprint the sum of
$661,640.65. The failure of the Phoenix System to achieve Final Acceptance on or
prior to December 31, 2001 shall not constitute a breach by Hybrid of the Final
Acceptance provisions of the Agreement, Amendment 1 or Amendment 2 as they
relate to the Phoenix System. The parties understand and agree that Sprint's
waiver of this particular breach is not and will not be construed to be a waiver
of any other right or remedy that Sprint may have under the Agreement, Amendment
#1 or Amendment #2, including, without limitation, other rights or remedies
related to the Phoenix System.

4.Unless otherwise specified in this Amendment #2, all capitalized terms used
herein shall have the meanings set forth in the Agreement.

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5.In the event of a conflict between the terms of this Amendment 2 and the terms
of Amendment 1 or the Agreement, the terms of this Amendment 2 shall control.

6.All other terms and conditions of the Agreement, including Amendment 1 remain
unchanged. Except as specifically stated herein, nothing in this Amendment 2
waives either party's rights under the Agreement or Amendment 1.

    IN WITNESS WHEREOF, each party has executed this Amendment 2 by a duly
authorized representative. The parties acknowledge that they have read,
understood and agreed to the terms of this Amendment 2.

SPRINT/UNITED MANAGEMENT COMPANY   HYBRID NETWORKS, INC.
By: 

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By: 

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Name: 

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Name: Judson W. Goldsmith
Title: 

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Title: Vice President of Finance
Dated: 

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Dated: 

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