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                                                                    Exhibit 10.7

2004 NEOWARE EXECUTIVE BONUS PLAN

PURPOSE: The Neoware Executive Bonus Plan ("Plan") is designed to motivate and
reward the achievement of key business objectives and provide a retention
incentive while maintaining alignment with shareholder value and expectations.

ELIGIBILITY: Participant's eligible under the plan are certain defined executive
level employees who are not already eligible for revenue-based incentive plans.
Employees who are hired by Neoware or are promoted/reclassified into an eligible
category during a bonus period will be eligible for a pro-rated bonus. In order
to be eligible to receive a bonus, the individual must be employed by Neoware at
the time of payment.

BONUS PERIOD: The Plan is structured as an annual plan which runs from July 1
through June 30th. Bonuses are based upon the Company's financial performance
and an employee's individual performance during the relevant bonus period.

TIMING OF BONUS PAYMENT: Although every effort will be made to process payments
on a timely basis, there is no guaranteed payment date associated with this
Plan. Payments will be made only after financial results have been reported and
recommendations have been submitted to and approved by the Compensation
Committee.

BONUS MEASUREMENT CRITERIA:
A participant's targeted bonus is 50% of base salary (target bonus percentage),
however this amount can be increased or decreased at the discretion of the
Compensation Committee based upon the criteria described below.

The actual bonus received by an employee is based upon two measurement criteria:
the Company's financial performance and individual employee performance. These
two criterion are described below.

FINANCIAL PERFORMANCE
The Company's performance as measured against its targeted financial plan for
revenue and net income during a bonus period establishes the financial
performance percentage earned under the Plan. If the Company meets its financial
goals, then the financial performance percentage earned is 100%. Financial
results higher or lower than the target will result in an adjustment up or down
of the financial performance percentage amount based on evaluation by the
Compensation Committee. The financial performance percentage is then multiplied
by the targeted bonus percentage to determine the eligible bonus percentage.

INDIVIDUAL EMPLOYEE ACHIEVEMENT
Once the eligible bonus percentage has been established for each participant,
the Compensation Committee will have discretion to adjust the bonus for
individual employees based upon job performance and achievement of individual,
functional area and departmental objectives.



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APPROVALS
The actual bonus payment for all participants will be reviewed and approved by
the Compensation Committee.

DISCRETION OF THE BOARD OF DIRECTORS
Notwithstanding the above, the Compensation Committee (or, with respect to the
CEO's bonus, a majority of the independent directors of the Board), at its sole
discretion, may modify or change this Plan or its implementation at any time,
including, but not limited to, revising performance targets, bonus multipliers,
strategic goals and objectives and actual bonus payments. The Compensation
Committee or majority of the independent directors of the Board of Directors, as
applicable, shall have the sole discretion to determine (i) whether performance
targets have been achieved, (ii) whether individual goals and objectives have
been achieved, and (iii) the amount of any adjustments to an individual's bonus
multipliers based on items (i) and (ii) above and such other criteria deemed
appropriate by the Compensation Committee. As a condition to participation, each
participant will acknowledge that he or she has reviewed and understood the
Plan, the bonuses under the plan are discretionary and no bonus will be payable
unless and until the actual amount of the bonus payment is approved by the
Compensation Committee or a majority of the independent directors of the Board,
as applicable.