Document:

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                                                                   EXHIBIT 10.19

                     DEVELOPMENT AND DISTRIBUTION AGREEMENT

              THIS DEVELOPMENT AND DISTRIBUTION AGREEMENT ("Agreement") is
made and entered into as of May ___, 1999 ("Effective Date") by and between
BE INCORPORATED, a California Corporation with its principal offices at 800
El Camino Real, Suite 400, Menlo Park, California 94025, U.S.A. ("Be"), and
STRATA _______, a _______ Corporation with its principal offices at 2 West
Street, St. George, Utah 84770, U.S.A. ("Strata").

              WHEREAS, Be has developed the Be digital media operating system
known as BeOS-Registered Trademark- ("BeOS"); and

              WHEREAS, Strata has developed the Strata 3-D modeling,
rendering and animation software application known as StudioPro and the
Strata video editing software application known as VideoShop (collectively,
the "Strata Products"); and

               WHEREAS, Be and Strata desire to work together as set forth in
this Agreement to modify the Strata Products so as to port them to run on
BeOS (the "Modified Products") and for Strata then to market, distribute,
maintain and support the Modified Products.

              WHEREAS, concurrently with the execution of this Agreement, Be
and Strata are entering into Be's standard BeDepot Online Distribution
Agreement (the "Distribution Agreement") pursuant to which Be will sell
copies of the Modified Products for BeOS to end users;

         NOW, THEREFORE, in consideration of the foregoing premises and the
covenants contained herein, the parties hereby agree as follows:

1.  DEVELOPMENT EFFORT

         1.1  DESCRIPTION OF THE DEVELOPMENT EFFORT.  Subject to the terms
and conditions of this Agreement, Be will, with the assistance of Strata,
perform development and engineering services to port the Strata Products to
BeOS (the "Services") as more fully described in the statement of work
attached as EXHIBIT A hereto ("Statement of Work"). Such Statement of Work
may be amended or modified by supplementary work orders agreed to by both
parties hereto and attached to the Statement of Work, and thereafter the
Services will be deemed to include the services described in such
supplementary work orders.

         1.2  BE'S DEVELOPMENT OBLIGATIONS.  Be will use commercially
reasonable efforts to meet the schedules and time of performance for the
Services as set forth in the Statement of Work. The manner and means used by
Be to perform the Services are in the sole discretion and control of Be
subject to the provisions below.

                  (a)  Be will provide requisite engineering personnel and
such other development resources as may be required to perform and complete
its portion of the Services in accordance with the terms and conditions of
this Agreement/schedule set forth in the Statement of Work.

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                  (b)  Be will make available to Strata one (1)
BeOS-compatible Intel Pentium based development environment for use in
testing and development assistance.

                  (c)  Be will provide basic QA and matrix testing of the
Modified Products.

                  (d)  Be will deliver to Strata the Modified Products as set
forth on the Statement of Work, along with the information, materials, and
technology that constitutes the modifications made to the Strata Products
that make up the Modified Products.

         1.3      STRATA'S DEVELOPMENT ASSISTANCE OBLIGATIONS.

                  (a)  Strata will designate a lead developer technical
support engineer that will provide commercially reasonable priority support
to Be for the duration of the Services; provided however, that Be
acknowledges and agrees to use its own commercially reasonable efforts to
provide the Services with minimal requests for Strata assistance. Strata will
participate in the final testing/QA of the Modified Products as more fully
described in EXHIBIT A, and will use its best efforts to provide adequate and
useful feedback to Be during the porting effort to ensure the Modified
Products will meet Strata's functional specifications in the acceptance stage
of this Agreement.

                  (b)  Strata will provide at least three (3) days of
training to an engineer to be designated by Be for each of the Strata
Products.

                  (c)  Strata will develop product documentation, help files
and examples, including any BeOS specific versions or addenda for the
Modified Products in the languages stated in the Statement of Work and in
accordance with the schedule set forth in the Statement of Work.

                  (d)  Strata agrees to provide Be with the Strata Products
(including all related source code, libraries, object files and other
necessary components in machine readable formats), along with such other
information, materials, and technology owned or controlled by Strata as Be
reasonably requires to meet its obligations as set forth in this Agreement
("Strata Licensed Technology"). In connection with Be's porting effort
described herein, Strata hereby grants to Be, during the period whereby Be is
providing the Services, a royalty-free, non-exclusive, license to use,
reproduce, modify, create derivative works from, and otherwise practice the
Strata Licensed Technology under all Strata IP Rights (as defined in Section
5) covering such Strata Licensed Technology, to allow Be to complete the
Services described herein. Strata hereby agrees that Be may sublicense the
foregoing rights to and fulfill its obligations under Section 1.2 above
through a contractor; provided that such contractor must first be approved by
Strata (which approval may not be unreasonably withheld or delayed) and such
contractor executes a non-disclosure agreement including provisions at least
as protective of Strata's Confidential Information as those set forth herein.
As between the parties, Strata will retain all ownership rights in and to the
Strata Licensed Technology, and Be will gain no rights in or to the Strata
Licensed Technology except for the license set forth above.

2.  DELIVERABLES AND ACCEPTANCE

         2.1  DELIVERY.  In performing the Services, Be shall design and
develop those software programs, interfaces and other deliverables
("Deliverables") as required in the Statement of Work. Be shall use
commercially reasonable efforts to ensure that the Deliverables are completed
and delivered to Strata in accordance with the schedule

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set forth in the Statement of Work and that such Deliverables conform to the
specifications set forth in EXHIBIT B hereto ("Specifications") in all
material respects.

         2.2  ACCEPTANCE.  Within 10 days of receiving a Deliverable, Strata
shall determine whether such Deliverable conforms to the Specifications. If
Strata reasonably determines that such Deliverables do not conform to the
Specifications in all material respects, Strata shall promptly notify Be in
writing that such Deliverables are not accepted and specifically setting
forth the non-conformity(ies). The parties shall then mutually determine the
corrective action required to bring the Deliverable into conformance with the
Specifications, and additional testing on previously non-conforming
Deliverables shall be completed as determined by the parties.

3.  REPRODUCTION, PACKAGING AND MARKETING

         3.1  BE MARKETING AND PROMOTION OBLIGATIONS.  Be will promote the
Modified Products, at no charge to Strata, through various efforts, including
(i) Web-based marketing, (ii) allowance of Strata's participation in Be
booths at appropriate and mutually agreed upon trade shows and demonstrations
at Be developer conferences, (iii) provision of disk space for Strata
demonstrations on BeOS demonstration CDs, with approval by Be at its sole
discretion, (iv) access to Be user lists, through third party bonded mailing
houses, for direct mailings promoting the Modified Products; (v) allowance of
Strata's participation, as determined by Be, in Be's public relations
efforts, and (vi) introductions of Strata to appropriate Be OEMs.

         3.2  STRATA REPRODUCTION AND MARKETING OBLIGATIONS.  Upon acceptance
of the Modified Products by Strata, Strata will reproduce, package, promote
and market the Modified Products to end users. Strata agrees to promote and
market the Modified Products with at least as much effort as Strata promotes
and markets the Windows and Macintosh versions of the Strata Products.

         3.3  EXECUTION OF BEDEPOT AGREEMENT.  Upon acceptance of the
Modified Products by Strata, Strata shall enter into a BeDepot sales
agreement with Be substantially in accordance with the form attached hereto
as EXHIBIT C.

         3.4  ANNOUNCEMENT.  Be and Strata will work together to announce,
pursuant to a mutually agreed upon press release, the development efforts
hereunder. In no instance will Strata otherwise disclose the terms of this
Agreement except as required to Strata's accountants and legal counsel.

4.  CONSIDERATION AND EXPENSES

         4.1  RECOUPMENT OF DEVELOPMENT COSTS.  Until such time as Be has
fully recouped the all costs incurred by Be, including but not limited to
engineering costs, towards its development obligations hereunder or until Be
has received $110,000 from Strata under this Section 4.1, whichever is
earlier, Strata shall pay to Be fifty percent (50%) of revenue received by
Strata from distribution or license for use of the Modified Products, less
reasonable costs and allowances, including product packaging, taxes and
returns.

         4.2  RECORDS, REPORTS AND AUDITS.  Strata shall maintain a complete,
clear, accurate record of, and provide such record with each recoupment
payment to Be: (a) the number, list price, revenue received by Be and the
recoupment amount due to Be for each copy of the Modified Products
distributed or licensed for use during the quarter, and (b) any other
information which may be required to determine whether Strata is paying the
correct recoupment

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amount hereunder. To ensure compliance with the terms of this Agreement, Be
shall have the right to conduct an inspection and audit of all the relevant
accounting and sales books and records of Strata during regular business
hours at Strata's offices with 15 days' prior written notice and in such a
manner as not to interfere with Strata's normal business activities. In no
event shall audits be made hereunder more frequently than every twelve (12)
months.

         4.3  NO OTHER FEES.  Except as stated in Section 4.1, each party
acknowledges and agrees that it shall not be entitled to any other monetary
fees from the other party for the performance of its obligations hereunder or
delivery of the Deliverables provided hereunder.

         4.4  EXPENSES.  Each party agrees that it shall be solely
responsible for all its own expenses, including but not limited to actual
travel and out-of-pocket expenses, incurred in connection with the
performance of its obligations hereunder.

         4.5  TAXES.  Strata shall be responsible for payment of all taxes or
charges, except for any taxes based solely on Be's net income, incurred or
assessed on the transfer of technology hereunder.

5.  INTELLECTUAL PROPERTY RIGHTS

         5.1  As used herein, the term "IP Rights" means recognized
protectable intellectual property, including: patents and applications,
copyrights, trademarks, trade secrets, mask works, industrial design rights,
know-how, methodologies, and any and all other legal rights protecting
intangible proprietary information. Examples of inventions, innovations, and
developments that may contain protectable IP Rights include: formulas,
algorithms, methods, processes, databases, computer networks and their parts,
computer languages, scripts, computer programs and their documentation,
encoding techniques, articles, writings, works of authorship, and
improvements.

         5.2  In connection with the performance of the Services or other
obligations hereunder, each party will exercise and utilize certain of its
own IP Rights. Except as otherwise set forth herein, neither this Agreement,
nor the provision of Services hereunder, will give either Be or Strata any
ownership interest in or rights to the existing IP Rights of the other party.
Except as otherwise set forth herein, all IP Rights that are owned or
controlled by a party at the commencement of this Agreement shall remain
under the ownership or control of such party throughout the term of this
Agreement and thereafter.

         5.3  As between the parties and subject to Section 5.4, Strata will
retain sole ownership of all rights to any and all Innovations, whether or
not jointly conceived, and IP Rights arising therefrom, that are intended, in
the application thereof, to be incorporated into the Modified Products. To
perfect ownership of Strata IP Rights, Be agrees to and hereby does assign to
Strata all rights Be may have in those Innovations to be owned by Strata as
provided in this Section 5.3, and at Strata's request and expense Be will
assist and cooperate with Strata in all reasonable respects, and execute all
documents and, subject to reasonable availability, give testimony and take
all further acts reasonably necessary to acquire, transfer, maintain, and
enforce such Strata IP Rights.

         5.4  As between the parties, Be will retain sole ownership of all
rights to all Innovations, whether or not jointly conceived, and all IP
Rights arising therefrom, that consist of generic software objects,
programming code, interfaces or drivers intended to be integrated with or
incorporated in BeOS to run the Modified Products, or which are generally
applicable to software applications ported to BeOS (hereinafter, the "Be
Licensed Modifications"). In

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light of Be's ownership in the Be Licensed Modifications and provided that
Strata continues to comply with the terms and conditions of this Agreement,
Be hereby grants to Strata a royalty-free, non-exclusive, license to use,
reproduce and distribute (including through multiple tiers) and otherwise
practice the Be Licensed Modifications under all Be IP Rights (as defined in
Section 5.1) covering such Be Licensed Modifications.

         5.5  Subject to each party's compliance with the confidentiality
provisions of this Agreement, nothing in this Agreement will restrict or
limit either party from engaging in similar software development arrangements
with any other entity in any industry, both during and after the term of this
Agreement.

6.  MAINTENANCE, SUPPORT AND WARRANTIES

         6.1  MAINTENANCE AND SUPPORT OBLIGATIONS.  Strata will be solely
responsible for all, and, except as otherwise expressly set forth in this
Agreement, Be will have no obligation to provide any, maintenance or support
services to Strata or any of Strata's distributors, resellers or customers
with respect to the Deliverables or the Modified Products. Further, Strata
agrees that it will not refer any of its representatives, distributors,
resellers or customers to Be for any help with any questions or problems
relating to the Deliverables or the Modified Products, unless Be has
expressly authorized Strata in writing to do so. Strata will maintain and
update the Modified Products so as to keep them current at all times with its
Windows and Macintosh counterparts.

         6.2  WARRANTIES; DISCLAIMERS.  Strata hereby represents and
warrants that the Strata Products will not infringe any IP Rights of any
third party. Both parties represent and warrant that it has full right and
power to enter into and fulfill this Agreement without the consent of any
third party. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ALL DELIVERABLES
ARE PROVIDED TO THE OTHER PARTY ON AN "AS IS" BASIS AND WITHOUT ANY WARRANTY
OF ANY KIND. NEITHER PARTY WARRANTS THAT USE OF THE DELIVERABLES WILL BE
ERROR- FREE, SECURE OR UNINTERRUPTED. EACH PARTY AND ITS SUPPLIERS DISCLAIM
ALL EXPRESS AND IMPLIED WARRANTIES, INCLUDING THE IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND
NON-INFRINGEMENT OF THIRD PARTY RIGHTS.

7.  INDEMNIFICATION.

         7.1  BY BE.  Be will indemnify, defend and hold harmless Strata, its
officers, directors, employees, sublicensees, assignees, customers and agents
from any and all claims, losses, liabilities, damages, expenses and costs
(including attorneys' fees and court costs) which result from a breach or
alleged breach of any representation or warranty set forth in Section 6 of
this Agreement (a "Claim"), provided that Strata gives Be written notice of
any such Claim and Be has the right to participate in the defense of any such
Claim at its expense.

         7.2  BY STRATA.  Strata will indemnify, defend and hold harmless Be,
its officers, directors, employees, sublicensees, assignees, customers and
agents from any and all claims, losses, liabilities, damages, expenses and
costs (including attorneys' fees and court costs) which result from a breach
or alleged breach of any representation or warranty set forth in Section 6 of
this Agreement (a "Claim"), provided that Be gives Strata written notice of
any such Claim and Strata has the right to participate in the defense of any
such Claim at its expense.

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8.  TERM AND TERMINATION

         8.1  This Agreement will commence on the Effective Date and, unless
terminated earlier pursuant to the terms of this Agreement, shall continue
for so long as Strata continues to market and distribute the Windows and/or
Macintosh versions of the Strata Products. (the "Term").

         8.2  This Agreement may be terminated by either party upon thirty
(30) days' prior written notice if the other party materially breaches any
term hereof and the breaching party fails to cure such breach within the
30-day period.

         8.3  Each party's rights and obligations under Sections 4, 5, 7, 8,
9, 10 and 11 of the Agreement will survive termination or expiration of the
Agreement. Within thirty (30) days after termination of this Agreement for
any reason, each party will return or destroy, at the direction of the other
party, such other party's Confidential Information.

9.  LIMITATIONS ON LIABILITY.

EXCEPT IN ANY INSTANCE OF A PARTY'S BREACH OF SECTION 7 OR 10, IN NO OTHER
EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER FOR LOSS OF PROFITS,
INTERRUPTION OF BUSINESS OR ANY OTHER SPECIAL, CONSEQUENTIAL, INCIDENTAL,
INDIRECT, PUNITIVE OR EXEMPLARY DAMAGES, HOWEVER CAUSED, WHETHER FOR BREACH
OF WARRANTY, BREACH OF CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE,
EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

10.   CONFIDENTIALITY AND NON-USE

         10.1  By virtue of this Agreement, each party hereto may disclose to
the other party information that is confidential or otherwise proprietary.

         10.2  Subject to the exceptions listed below, a party's
"Confidential Information" will be defined as written, electronic, oral or
other form of information disclosed by the party to the other party under
this Agreement and clearly marked or otherwise clearly designated as
"confidential" or the equivalent. Oral information is deemed "Confidential
Information" if identified as such in writing by the disclosing party within
30 days following disclosure However, a party's Confidential Information will
not include any information that: (a) is or becomes a part of the public
domain through no wrongful act or omission of the other party; or (b) was in
the other party's lawful possession prior to the disclosure and had not been
obtained by the other party either directly or indirectly from the disclosing
party; or (c) is lawfully disclosed to the other party by a third party
without restriction on disclosure; or (d) is independently developed by the
other party by employees or agents without reference to the party's
Confidential Information.

         10.3  Each party agrees, for the term of this Agreement and five (5)
years after its expiration or termination, to hold the other party's
Confidential Information in strict confidence, not to disclose such
Confidential Information to third parties not authorized by the disclosing
party to receive such Confidential Information, and not to use such
Confidential Information for any purpose except as expressly permitted
hereunder. Each party agrees to take reasonable steps to protect the other
party's Confidential Information to ensure that such Confidential Information

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is not disclosed, distributed or used in violation of the provisions of this
Agreement. The foregoing prohibition on disclosure of Confidential
Information will not apply to the extent certain Confidential Information is
required to be disclosed by the receiving party as a matter of law or by
order of a court, provided that the receiving party uses reasonable efforts
to provide the disclosing party with prior notice of such obligation to
disclose and reasonably assists in obtaining a protective order therefor.

         10.4  As used herein, the term "Residuals" means information in
non-tangible form that is inadvertently retained by persons who have had
access, as authorized in this Agreement, to the other party's technology,
including ideas, concepts, know-how or techniques contained therein.
"Residuals" shall not include ideas, concepts, know-how or techniques which
such persons know or should have reason to believe were acquired from access
to such other party's technology. Each party acknowledges and agrees that,
notwithstanding anything to the contrary in Section 10.3 or elsewhere in this
Agreement, it and its employees may utilize for any lawful purpose any
Residuals in connection with the performance of the obligations under this
Agreement or access to the other party's Confidential Information.

11.   GENERAL

         11.1  INDEPENDENT CONTRACTOR.  Each party hereto is an independent
contractor to the other party, and nothing contained in this Agreement will
be construed to create or imply a joint venture, partnership, principal-agent
or employment relationship between the parties. Neither party may take any
action or permit any action to be taken on its behalf which purports to be
done in the name of or on behalf of the other party and neither party will
have any power or authority to bind the other party to assume or create any
obligation or responsibility express or implied on the other party's behalf
or in its name.

         11.2  NOTICES.  All notices, consents, waivers, and other
communications intended to have legal effect under this Agreement must be in
writing, must be delivered to the other party at the address set forth at the
top of this Agreement by personal delivery, certified mail (postage
pre-paid), or a nationally recognized overnight courier, and will be
effective upon receipt (or when delivery is refused). Each party may change
its address for receipt of notices by giving notice of the new address to the
other party.

         11.3  INJUNCTIVE RELIEF.  It is understood and agreed that,
notwithstanding any other provision of this Agreement, any material breach of
this Agreement will cause irreparable damage for which recovery of money
damages would be inadequate, and that the non-breaching party will therefore
be entitled to seek timely injunctive relief to protect such party's rights
under this Agreement in addition to any and all remedies available at law.

         11.4  FORCE MAJEURE.  Neither party shall be liable for any loss,
damage, or penalty arising from delay due to causes beyond its reasonable
control. Such delay shall be excused during the continuance of such delay and
the period of performance shall be extended to such extent as necessary to
allow the party to perform after the cause of such delay has ceased.

         11.5  EXPORT ADMINISTRATION.  If any Deliverables are for use
outside the U.S.A., each party agrees to comply fully with all relevant
regulations of the U.S. Department of Commerce and with the U.S. Export
Administration Act to assure that such are not exported, directly or
indirectly, by such party in violation of United

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States Law and to comply fully with any other regulations or laws relating to
such export or import into another country.

         11.6  GOVERNING LAW AND VENUE.  This Agreement will be governed by
and interpreted in accordance with the laws of the State of California as
such laws apply to contracts made between California residents to be
performed entirely within California. Any suit, action or proceeding arising
from or relating to this Agreement must be brought in a federal court in the
Northern District of California or in state court in Santa Clara County,
California, and each party irrevocably consents to the jurisdiction and venue
of any such court in any such suit, action or proceeding.

         11.7  WAIVER.  The failure of either party to require performance by
the other party of any provision of this Agreement will not affect the full
right to require such performance at any time thereafter; nor will the waiver
by either party of a breach of any provision of this Agreement be taken or
held to be a waiver of the provision itself as to any other breaches thereof.

         11.8  SEVERABILITY.  If any provision of this Agreement is
unenforceable or invalid under any applicable law or is so held by applicable
court decision, such unenforceability or invalidity will not render this
Agreement unenforceable or invalid as a whole, and such provision will be
changed and interpreted so as to best accomplish the objectives of such
unenforceable or invalid provision within the limits of applicable law or
applicable court decisions.

         11.9  ASSIGNMENT.  Neither this Agreement nor any rights or
obligations of either party under this Agreement may be assigned in whole or
in part without the prior written consent of the other party except in an
instance whereby such party assigns this entire Agreement in connection with
a merger or sale of all or substantially all of its business or assets. Any
attempted assignment in violation of the preceding sentence will be void.
This Agreement will bind and inure to the benefit of the respective
successors and permitted assigns of the parties.

         11.10  FULL POWER.  Each party warrants that it has full power to
enter into and perform this Agreement, and the person signing this Agreement
on such party's behalf has been duly authorized and empowered to enter into
this Agreement by their respective Board of Directors.

         11.11  CONSTRUCTION.  The section headings appearing in this
Agreement are inserted only as a matter of convenience and in no way define,
limit, construe, or describe the scope or extent of such section or in any
way affect this Agreement. Unless otherwise expressly stated, when used in
this Agreement the word "including" means "including but not limited to."

         11.12  ENTIRE AGREEMENT AND AMENDMENT.  This Agreement together with
the Exhibits completely and exclusively states the agreement of the parties
regarding its subject matter. It supersedes, and its terms govern, all prior
understandings, agreements, or other communications between the parties, oral
or written, regarding such subject matter. This Agreement may be executed in
counterparts and may be amended only in a document signed by both parties.

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        IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the Effective Date.

STRATA, INC:                           BE INCORPORATED:

By:                                           By:
   ----------------------------                  -----------------------------

Name:                                         Name:
     --------------------------                    ---------------------------

Title:                                        Title:
      -------------------------                     --------------------------

Date:                                         Date:
     --------------------------                    ---------------------------

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                                    EXHIBIT A

                                STATEMENT OF WORK

                               DATED:
                                      --------------------
                                 INITIALED:

PROJECT

Development of versions of the Strata Products StudioPro and VideoShop ported
to BeOS.

STRATA LICENSED TECHNOLOGY

StudioPro

VideoShop

SCHEDULE

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DELIVERABLE                                                               SCHEDULED DELIVERY DATE
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TESTING/QA PROCEDURES

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                                    EXHIBIT B

                                 SPECIFICATIONS

                                [to be attached]

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                                    EXHIBIT C

                             BEDEPOT SALES AGREEMENT

                                [to be attached]

                                       213<PAGE>

                                                                   EXHIBIT 10.20

                         STRATEGIC PROCUREMENT AGREEMENT

                                     between

                               C-3D Digital, Inc.
                       21601 Devonshire Street, Suite 320
                              Chatsworth, CA 91311
                                       USA

                       -subsequently referred to as C-3D-

                                       and

                            i-O Display Systems, LLC
                                1370 Willow Road
                              Menio Park, CA 94025
                                       USA

                        -subsequently referred to as IOD-

                is the following Supplier Agreement to be agreed:

PREAMBLE

IOD is the leading manufacturer and supplier of head mounted personal
displays, stereo 3D products and certain patented product components such as
optics, miniature imagers and electronics.

C-3D is a stereoscopic 3D television and internet entertainment business that
has skills in 3D entertainment content creation, 2D to 3D content conversion,
broadcast and internet presentation.

In order to secure a reliable and continuous supply of 3D stereoscopic
viewing systems, C-3D wished to enter into a Strategic Procurement Agreement
with IOD.

1  PURPOSE OF AGREEMENT

(1)  IOD sells to C-3D, as a result of individual Deliveries On Call,
products, whose exact description and specifications are determined in Part 1
of the Product Descriptions and in the Quality Assurance Agreement (Part 1)
between IOD and C-3D, its service providers and/or buyers.

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(2)  All procedures and actions in the business relationship between C-3D and
IOD, in particular offers, orders and deliveries, are subject to the
conditions of this Strategic Procurement Agreement, beginning with the date
of signature by both parties.

(3)  The parties may adjust or alter Part 1 of the Product Arrangements from
time to time, in particular if C-3D's requirements change due to technical
progress or the market situation.

(4)  IOD assures explicitly, that the delivered Agreement Products correspond
exactly to the agreed specifications in Part 1 of the Product Arrangements
and the Quality Assurance Agreement.

(5)  This agreement substantiates no commitment from C-3D to accept or pay for
individual deliveries or Agreement Products. A commitment for C-3D to take
delivery of Agreement Products exists only for binding orders confirmed by
IOD according to Section 2, paragraph 2. A forecast made by C-3D ("Forecast")
is in any case not binding.

(6)  IOD will include various reference dates on all documents as required by
C-3D, in particular on confirmations of order, delivery notes and invoices.

2  DELIVERY CONDITIONS, AGREEMENT CONCLUSION

(1)  The respective terms of delivery, prices, payment policies and other
delivery arrangements are, as with the responsibility for liability, defined
in Part 2 of the Product Arrangements.

(2)  A Agreement conclusion with respect to any individual Delivery On Call is
effected by C-3D giving an order and written confirmation of the order by IOD
within the space of four (4) workdays.

3  TURN-KEY

Turnkey Agreements are defined as Agreements where IOD buys and inventories
the required materials and manufacturers the final product for C-3D. For
turnkey Agreements, Agreement Products shall comply with the specifications
attached and incorporated into this Agreement by this reference.

4  DELIVERY DATES, DEFAULT OF DELIVERY

(1)  IOD will undertake to deliver any individual Delivery On Call at the
therein named date and to the therein named place. The bringing forward of
delivery dates within the framework of the availability of Agreement Products
in buffer stock according to Section 7 is possible at all times. Further
details about the delivery dates are contained in Part 3 of the Product
Arrangement.

(2)  IOD is obliged to instruct C-3D promptly in writing about any possible
delivery problems. Any existing claims by C-3D due to default in delivery
remain exempt.

(3)  In the case of necessary adjustments of the quantities ordered and
appointed times, so is the agreed Flex model according to Part 3 of the
Product Arrangements valid.

(4)  IOD is not liable for delivery delays caused by civil disturbance due to
events which make delivery impossible for IOD, in particular fire, floods or
other natural phenomena, national prohibitions or other official measures,
walkouts or lockouts, or other Acts of God.

5  AGREEMENTUAL PENALTY

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None

6  PASSING OF TITLE

On pick-up of the Agreement Products from the place named in the individual
Delivery On Call or, in case no place is named, from the IOD in Menlo Park,
California, so transfers the title of the Agreement Products unconditionally
and exclusively to C-3D.

7  BUFFER STOCK

(1)  IOD is obliged to maintain a minimum stock level of Agreement Products
for special requirements C-3D may have, in particular rapid demand and
replacement deliveries in case of warranty. This stock-level is determined by
the quantities named in the Forecast for the duration of (2) weeks and will
be exchanged for new Agreement Products by IOD on a rotation system as agreed
by IOD and C-3D in writing. Provided however that C-3D shall committed to
purchase the buffer stock of all Product at the end of the product life or
upon cancellation of this Agreement by C-3D by means other than Section 31
Extraordinary Termination.

(2) the reduction of this buffer stock occurs in accordance with the first-in
first-out method. In addition, the Flex model according to Part 3 of the
Product Arrangements applies.

(3)  IOD is obliged to promptly completely replenish the buffer stock whenever
it is accessed.

8  PARTICULAR REQUIREMENTS, TECHNICAL CHANGES

(1)  Should the Agreement Products be subject to any particular requirements,
especially with respect to storage, transport, operation and handling (e.g. ESD
safety measures), so must these be fulfilled by IOD and C-3D is to be informed
punctually in writing by IOD before the respective delivery.

(2)  IOD gives C-3D its assurance to inform C-3D promptly about all technical
or other problems concerning the Agreement Products, in particular about
problems due to function errors, also then if C-3D is not directly affected.

9  QUALITY CONTROL, RECEIVING INSPECTION

(1)  IOD is responsible for the implementation of all necessary quality
controls. C-3D shall only be required to complete an inspection of products
to ensure packaging is in tact and the product functions, on a timely basis
and report any quality issues to IOD promptly.

(2)  IOD is under obligation only to deliver Agreement Products which have
been examined and determined to be fully functional, either by itself or any
prior suppliers.

10  WARRANTY

(1)  IOD gives a warranty on all Agreement Products for drawing exactness and
for defects, which occur as a result of material deficiencies and/or
defective production or processing. A warranty case also comes

                                       216
<PAGE>

into effect in the case of deviations from the specification laid down in
Part 1 of the Product Arrangements and/or the Quality Assurance Agreement
according to Part 1.

(2)  The period of warranty for the Agreement Products is stated in Part 2 of
the Product Arrangements. C-3D will reprimand defects in writing.

(3)  In the case of warranty C-3D is entitled to demand, at C-3D's
discretion, either substitute delivery of faultless Agreement Products or
improvement or to return the faulty Agreement products in return for a credit
note to the original purchase price.

(4)  WARRANTY AND DISCLAIMER. EXCEPT FOR THE EXPRESS WARRANTY CONTAINED IN THE
ORDER TERMS, IOD MAKES NO REPRESENTATION OF WARRANTY, EXPRESS OR IMPLIED
(INCLUDING IMPLIED WARRANTIES OR MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE) CONCERNING ANY PRODUCT. ALL OTHER GUARANTEES, WARRANTIES, CONDITIONS
AND REPRESENTATIONS, EITHER EXPRESS OR IMPLIED, WHETHER ARISING UNDER ANY
STATUTE, LAW, COMMERCIAL USAGE OR OTHERWISE, ARE HEREBY EXCLUDED.

SELLER MAKES NO WARRANTY THAT THE GOODS WILL NOT INFRINGE ANY CLAIMS OF ANY
UNITED STATES OR FOREIGN PATENTS OR COPYRIGHTS. SELLER WILL NOT INDEMNIFY
BUYER OR ITS CUSTOMERS FOR ANY CLAIMS BROUGHT AGAINST BUYER OR ITS CUSTOMERS
FOR INFRINGEMENT OF ANY SUCH PATENTS OR COPYRIGHTS.

(5)  C-3D ACKNOWLEDGES AND AGREES THAT IOD'S SOLE RESPONSIBILITY IN THE CASE
OF BREACH OF THE FOREGOING WARRANTY SHALL BE FOR IOD, AT IOD'S ELECTION, TO
REPAIR OR PROVIDE A REPLACEMENT FOR THE PRODUCT OR THE PORTION OF THE PRODUCT
WITH RESPECT TO WHICH SUCH WARRANTY IS BREACHED OR TO RETURN ALL PAYMENTS
MADE WITH RESPECT TO SUCH PRODUCT OR PORTION THEREOF. IN NO EVENT , INCLUDING
BREACH OR NON-FULFILLMENT OF THE FOREGOING LIMITED REMEDY, SHALL IOD BE
LIABLE FOR LOSS OF PROFITS OR INDIRECT, INCIDENTAL, CONSEQUENTIAL OR SPECIAL
DAMAGES OR ANY KIND.

11  PRINCIPLE OR SERIAL DEFECTS

(1)  A principle or serial defect is present, if more than 3% of the
Agreement Products have defects with the same origin, or have the same
deviations from the arranged specifications.

(2)  IOD is under obligation to supply C-3D with a detailed analysis of the
causes of the principle or serial defects within one week after receipt of
samples.

12  QUALITY OF THE FIRST SERIES

Does not apply.

13  TYPE SUPPORT/REPAIR/SPARE PARTS

IOD supports C-3D in the removal of defects which are no longer covered by
the warranty period; in particular IOD is under obligation, after the
warranty period has expired, and on C-3D's request, to repair

                                       217
<PAGE>

defective Agreement Products, or if necessary to deliver replacement
components or replacement products. All costs associated this section 13
shall be borne by C-3D. This commitment ends two (2) years after the last
delivery of Agreement Products, if at all technically possible.

14  CONSISTENT PRODUCTION PROCEDURE

IOD maintains during the Agreement duration a consistent production procedure
with consistent materials. An intended change in production procedure or
materials, for whatever reason, must be relayed to C-3D punctually before the
intended commencement of the changed production. The change is only permitted
if C-3D has given its written consent.

15  QUALITY ASSURANCE

IOD is under obligation to follow exactly the DPPM recommendations according
to the Quality Requirements aims outlined in Part 1 of the Product
Arrangements.

16  DOCUMENTATION, NECESSARY DOCUMENTS

IOD supplies C-3D with existing documents and other necessary documents
concerning the Agreement Products, in English, to a sufficient extent and
free of charge.

17  WORK PRODUCT OWNERSHIP

Any copyrightable works, ideas, discoveries, inventions, patents, products,
or other information related to products or process (collectively, the "Work
Product") developed in part or in whole by IOD in connection with the
Services or Agreement Products shall be in the exclusive property of IOD.

18  PACKAGING, WASTE DISPOSAL

(1)  IOD is under obligation to deliver the Agreement Products exclusively in
environmentally-friendly and recyclable packaging, to take back these as well
as defective Agreement Products on C-3D's request, and to dispose of them
according to the relevant regulations in force.

19  LIABILITY

C-3D is not liable to IOD for indirect and/or consequential damages,
immaterial of any legal basis, in particular not for lost profits and lost
interest, unless a case of premeditation or gross negligence applies.

IOD is not liable to C-3D for indirect and/or consequential damages,
immaterial of any legal basis, in particular not for lost profits and lost
interest, unless a case of premeditation or gross negligence applies.

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<PAGE>

20  INSURANCE

(1)  C-3D is under obligation to carry out all insurance at its own expense,
in particular third-party insurance, which covers all damages which C-3D may
incur as the result of distribution of Agreement Products, in particular as a
result of callback liabilities, liability in tort and product liability as
well as expanded product liability for financial loss due to possible defects
of Agreement Products.

(2)  C-3D is under obligation to maintain this insurance during the whole
Agreement period.

(3)  C-3D furnishes IOD with a record of the signing of the corresponding
insurance promptly upon availability of the respective insurance policy and
will promptly instruct IOD if changes arise, with respect to the insurance,
which results in the insurance cover no longer being sufficient. On demand
IOD can, at all times, inspect the relevant documents.

21  YEAR 2000-COMPATIBILITY

(1)  IOD assures that its products are "Year 2000-compatible", that is to
say, no conflicts and problems with the Agreement Products will occur either
due to changing from the year 1999 to the year 2000 and afterwards, or to
recognizing the year 2000 as a leap year.

(2)  The parties agree that non-compliance with this demand represents a
warranty case according to a Section 10.

22  PRICE ADJUSTMENTS, MOST FAVORED NATION

(1)  IOD assures that prices and conditions offered to C-3D for the Agreement
Products are at least as favorable as the best prices and conditions granted
by IOD to another buyer for the same or comparable products at like volumes.
Should any other buyer of IOD be granted more favorable conditions or more
favorable prices for the same or comparable products than C-3D, so is IOD
under obligation to grant C-3D unsolicited such conditions and prices,
backdated to the time at which the other buyer was first granted the more
favorable prices or conditions. The appropriate credit notes are to be issued
at the end of each quarter. Should C-3D not be in the position to set off
these credit notes against current payments, IOD will refund C-3D the credit
note sum within fourteen days of the date of the credit note.

23  TRANSFERS AND ASSIGNMENTS

IOD is not entitled to transfer rights and/or duties out of this Agreement to
a third party without the previous written consent of C-3D.

24  QUALITY ASSURANCE/NON-DISCLOSURE AGREEMENT

The parties are under obligation, if not already taken place, to complete a
Non-disclosure Agreement, which are, or will be, integral parts of this
Agreement in the form of Exhibit 1.

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<PAGE>

25  COUNTERBALANCING

C-3D is not permitted to any rights of retention or other recoupments as well
as assertion of any loan rights against IOD.

26  PAYMENTS

C-3D promises to IOD the prompt and full repayment of all sums now or
hereinafter due IOD from C-3D. Further, C-3D agrees to remain fully bound on
this obligation notwithstanding any extension, forbearance, waiver, release,
or discharge of the debt or substitution waiver or release of any collateral
or security for the debt.

If any invoice is not paid when due, interest will be added to any payable on
all overdue amounts at eighteen (18%) percent per annum, or the maximum
percentage allowed under applicable laws, whichever is less. The accrual of
payment of interest does not authorize C-3D to defer payment of any
indebtedness beyond the credit terms stated herein. If C-3D should fail to
make any payments, the IOD at its option may treat C-3D's failure to pay as a
material breach of this Agreement, and may terminate this Agreement and/or
seek legal or equitable remedies.

The holder of legal title to property which IOD provides Services for is
hereby notified that IOD holds a lien on said property for such Services and
may retain possession of the same until the charges are paid. In the event
the charges are not paid, the lienholder has the right to sell as much of the
personal property as necessary to satisfy the lien, costs of sale, storage
and interest.

Payment terms are 33% prepay at time of order, 33% COD, and 33% net 30 days
from the date of the invoice. IOD reserves the right to change all terms to
prepay if C-3D is delinquent on any payment.

27  TAXES

C-3D agrees to pay all USA taxes and duties including federal, state, and
municipal, that arise as a result of the sale of the Services and/or Goods
described herein, excluding IOD's income taxes.

28  IOD'S TERMS OF SALE AND DELIVERY

IOD's Terms of Sale and Delivery of do not apply to this Strategic
Procurement Agreement and all related individual Deliveries On Call. This
also applies if IOD refers to its Terms during the course of correspondence
resulting out of this Strategic Procurement Agreement.

29  USE OF IOD'S NAME AND LOGO, LICENSES

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<PAGE>

(1)  C-3D may not use IOD's name, trademarks and/or logo in its
advertisements or marketing efforts without the prior written approval of
IOD.

(2)  Except as expressly set forth herein, no license is granted to Customer
under any intellectual property rights of IOD, including, but not limited to,
patents, trademarks, copyrights, or trade secret rights, either expressly, by
implication, estoppel or otherwise. The relationship of the parties under
this Agreement is that of the independent Agreementors, and neither party is
an employee, agent, partner or joint venturer of the other.

30  COMPETITION

(1)  IOD and C-3D, as well as any connected companies, are not in direct
competition at the point of time when the Agreement is signed, i.e. the
product portfolios of IOD or C-3D do not contain any similar or identical
products.

(2)  Should C-3D plan to enter into direct competition with IOD with its
products in contradiction to the previous business relationship, especially
by taking over another company or in the case of being taken over itself by
another company, or if this is to be foreseen, so must C-3D inform IOD of
these plans punctually.

(3)  Should this regulation be violated, so has IOD the right to
extraordinary termination as laid down in Section 31.

31  TERM

(1)  This Strategic Procurement Agreement is valid for an indefinite period
of time. It begins upon joint ratification and ends when it is terminated by
one of the Agreement parties in written form with a limit of notice of three
(3) months to the end of the half-year.

(2)  On termination of this Strategic Procurement Agreement by IOD, C-3D will
decide whether to take delivery of Agreement Products already ordered by
Delivery On Call. Should this not be the case. C-3D is under no commitment to
pay for the outstanding Deliveries On Call or to bear any other costs.

(3)  On termination of this Agreement by C-3D, the commitment to deliver and
to accept Agreement Products already ordered on Delivery On Call is not
affected.

32  EXTRAORDINARY TERMINATION

(1)  C-3D can effect an extraordinary termination of this Strategic
Procurement Agreement for an important reason, as well as for the particular
reasons explicitly named in this Agreement. An important reason would be in
particular a breach of Agreement duties by IOD, its insolvency, the opening
of bankruptcy proceedings, as well as a change in the company or partner
structure of IOD.

                                       221
<PAGE>

(2)  In the case of an extraordinary termination C-3D decides whether it
still accepts Agreement Products ordered by individual Deliveries On Call.
Should this not be the case C-3D is not committed to pay for remaining
Deliveries On Call or to bear any other costs.

(3)  IOD can effect an extraordinary termination of this Strategic
Procurement Agreement for an important reason, as well as for the particular
reasons explicitly named in this Agreement. An important reason would be in
particular a breach of Agreement duties by C-3D, late or delayed payments,
its insolvency, the opening of bankruptcy proceedings, as well as a change in
the company or partner structure of C-3D.

(4)  In the case of an extraordinary termination IOD decides whether it still
delivers Agreement Products ordered by individual Deliveries On Call. Should
this not be the case IOD is not committed to ship remaining Deliveries On
Call or to bear any other costs.

(5)  An extraordinary termination by IOD or C-3D takes place in writing and
without notice.

33  FURTHER VALIDATION OF REGULATIONS

The provisions of this Agreement remain correspondingly further valid after
its termination as far as necessary and legal.

34  WRITTEN REQUIREMENTS

This Agreement, its Exhibits and Parts of the Product Arrangements represent
the entire Agreement between the parties and supersedes all former
discussions, Arrangements and Agreements between them. Amendments and
alterations to this Agreement including this clause must be in writing. No
party can refer to an actual practice deviating from this Agreement so long
as the discrepancy is not recorded in writing and both signed by duly
authorized officers.

35  SEVERABILITY

If any term of this agreement is or becomes invalid, illegal or unenforceable
for any reason, such invalidity, illegality or unenforceabilty shall not
affect the remaining terms of this agreement. Such provision shall be
enforced to the fullest extent permitted by applicable law or there shall be
substituted for any such invalid, illegal or unenforceable provision on a
suitable provision which, as far as is legally possible, comes nearest to
that which the parties intended when concluding this agreement. The same
applies in the case of a regulation loophole.

36  WAIVER

The failure of either party to enforce any provision of this Agreement shall
not be construed as a waiver or limitation of that party's right to
subsequently enforce and compel strict compliance with every provision of
this Agreement.

37  GENDER/TENSE

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<PAGE>

Whenever required by the content hereof, the singular shall be deemed to
include the plural and the plural shall be deemed to include the singular,
and the masculine, feminine and neutral genders shall be deemed to include
the others.

38  INDIVIDUAL/PARTNERSHIP AUTHORITY

Any individual signing this Agreement on behalf of another individual,
corporation, or partnership represents and warrants that he or she has full
authority to do so.

39  INDEPENDENT ADVICE OF COUNSEL

The parties hereto, and each of them, represent and declare that in executing
this Agreement, they rely solely upon their own judgment, belief and
knowledge, and the advice and recommendations of their own
independently-selected counsel. Further, the parties hereto, and each of
them, represent that they have had sufficient opportunity to consult with
independent counsel about the terms and conditions of this Agreement prior to
executing this Agreement.

40  VOLUNTARY AGREEMENT

The parties hereto, and each of them, further represent and declare that they
carefully read this Agreement and know the contents thereof and that they
signed the same freely and voluntarily.

41  APPLICABLE LAW, PLACE OF EXECUTION AND PLACE OF JURISDICTION

(1)  Exclusively the laws of the State of California, without reference to
its conflict of laws principles, apply to this Agreement.

(2)  The place of execution for delivery is the one named by C-3D in each
Delivery On Call. Should no place of reception be named, so is the place of
execution, just as for all payments, the Head Office of IOD in Menlo Park.

(3)  The place of jurisdiction is Menlo Park, California.

42  DISPUTE RESOLUTION

In the event any dispute or controversy arising out of or relating to this
Agreement, the parties agree to exercise their best efforts to resolve the
dispute as soon as possible. The parties shall, without delay, continue to
perform their respective obligations under this Agreement which are not
affected by the dispute. To invoke the dispute resolution process set forth
in this paragraph, the invoking party shall give to the other party written
notice of its decision to do so, including a description of the issues
subject to the dispute and a proposed resolution thereof. Designated
representatives of both parties shall attempt to resolve the dispute within
five (5) working days after such notice. If those designated representatives
cannot resolve the dispute, the parties shall meet at a mutually agreeable
location and describe the dispute and their respective proposals for
resolution to the President of Buyer and President of Seller, who shall act
in good

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<PAGE>

faith to resolve the dispute. If the dispute is not resolved within thirty
(30) calendar days after such meeting, the dispute shall be submitted to
binding arbitration in accordance with the Arbitration provision of this
Agreement.

43  ARBITRATION

Any controversies or disputes arising out of or relating to this Agreement
shall be resolved by binding arbitration in accordance with the then current
Commercial Arbitration Rules of the American Arbitration Association.
Notwithstanding the foregoing, either party may seek provision process in
good faith. The parties shall endeavor to select a mutually acceptable
arbitrator knowledgeable about issues relating to the subject matter of this
Agreement within ten (10) days of notice of commencement of arbitration. In
the event the parties are unable to agree to such a selection, each party
will select an arbitrator and the arbitrators in turn shall select a third
person who shall serve as sole arbitrator. The arbitration shall take place
in San Mateo County, California, or at a location mutually agreed upon by the
parties.

All documents, materials, and information in the possession of each party
that are in any way relevant to the claim(s) or dispute(s) shall be made
available to the other party for review and copying no later than thirty (30)
days after the notice of arbitration is served. Any document not timely
produced shall be excluded from evidence at the arbitration excepting only
for the purposes of impeachment.

Subject to the provisions in paragraph 19, the arbitrator shall not have the
authority, power, or right to alter, change, amend, modify, add, or subtract
from any provision of this Agreement or to award punitive damages. The
arbitrator shall have the power to issue mandatory orders and restraining
orders in connection with the arbitration. The award rendered by the
arbitrator shall be final and binding on the parties, and judgment may be
entered thereon in any court having jurisdiction. The agreement to
arbitration shall be specifically enforceable under the prevailing
arbitration law.

44  EXHIBITS

Exhibit 1:  Non-disclosure Agreement

All exhibits are fundamental constituents of this Agreement. The Exhibits may
be amended or altered. Further Exhibits will also be deemed to be constituent
parts of this Agreement upon ratification by both parties. In the case of
contradictions between this Agreement and an Exhibit, the provisions of the
Agreement shall prevail, as long as these have not been expressly altered in
the relevant Exhibit.

45  PRODUCT ARRANGEMENTS

Part 1:  Agreement Products, specifications

Part 2:  Delivery conditions, prices, payment procedures, liability

Part 3:  Delivery dates, Flex model

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<PAGE>

All parts of Product Arrangements will be ratified by both parties for each
Agreement Product as part of this Agreement. The Product Arrangements may be
extended or altered as required. In cases of contradiction between this
Agreement and a Part of Product Agreement, the terms of the Agreement take
precedence, as long as these have not been expressly altered in the relevant
Product Agreement.

Agreed:

i-O Display Systems, LLC                    C-3D Digital, Inc.

(being duly authorized                      (being duly authorized
on behalf of the                            on behalf of the
party to execute this                       party to execute this
Agreement)                                  Agreement)

       9/17/99                                      9/17/99
----------------------------------          -----------------------------------
(Place and Date)                            (Place and Date)

 /s/ Jeff Fergason                          /s/ J. Michael Heil
----------------------------------          -----------------------------------
Signature:                                  Signature:
Name: Jeff Fergason                         Name:  J. Michael Heil
Position: President                         Position: C.E.O.

----------------------------------          -----------------------------------
Signature:                                  Signature:
Name:                                       Name:
Position:                                   Position:

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<PAGE>

           PART 1 OF THE PRODUCT ARRANGEMENTS - PRODUCT SPECIFICATIONS

                 STRATEGIC PROCUREMENT AGREEMENT DATED 09-01-99
                        BETWEEN I-O DISPLAY SYSTEMS, LLC
                             AND C-3D DIGITAL, INC.

                         (SUPERSEDES ALL FORMER PART 1S
                           OF THE PRODUCT ARRANGEMENTS
                                 RELATED TO THE
                            BELOW MENTIONED PRODUCT).

1.  PRODUCT SPECIFICATION

-    IOD Part No.:         TBA

-    Supplier Part No.:    TBA

-    Part Description:  i-3d Wireless Shutter Glasses TV Viewing System
     (includes 2 pairs of wireless eyewear, TV transmitter, 4 ft' RCA male to
     male video cable, i-3d consumer package).

Both parties agree to the attached and product specification and QA plan
number _________________. Future changes have to be made in written form and
shall be deemed as agreed if it is signed by both parties.

Agreed:

i-O Display Systems, LLC                     C-3D Digital, Inc.

(being duly authorized                       (being duly authorized
on behalf of the                             on behalf of the
party to execute this                        party to execute this
Agreement)                                   Agreement)

       9/17/99                                      9/17/99
----------------------------------           -----------------------------------
(Place and Date)                             (Place and Date)

 /s/ Jeff Fergason                            /s/ J. Michael Heil
----------------------------------           -----------------------------------
Signature:                                   Signature:
Name: Jeff Fergason                          Name:  J. Michael Heil
Position: President                          Position: C.E.O.

                                       226
<PAGE>

                 PART 2 OF THE PRODUCT ARRANGEMENTS - PURCHASING

                 STRATEGIC PROCUREMENT AGREEMENT DATED 09-01-99
                        BETWEEN I-O DISPLAY SYSTEMS, LLC
                             AND C-3D DIGITAL, INC.

                         (SUPERSEDES ALL FORMER PART 2S
                           OF THE PRODUCT ARRANGEMENTS
                                 RELATED TO THE
                            BELOW MENTIONED PRODUCT).

1.   PRICE SCHEDULE

The following price includes two i-3d wireless eyewear, one standard i-3d IR
transmitter and consumer package, FOB Menlo Park.

<TABLE>
<CAPTION>
   Monthly         System
  Quantity          Price           Eyewear          Trans          Package
--------------------------------------------------------------------------------
<S>             <C>                <C>             <C>            <C>
     1K            $102.00           $70.00          $30.00           $2.00
     5K            $ 88.00           $64.00          $22.00           $2.00
     10K           $ 82.00           $62.00          $19.00           $1.00
    100K           $ 65.00           $48.00          $16.00           $1.00
</TABLE>

-     C3D shall provide packaging sleeve artwork to IOD.

The first 1,500 systems shall include the H3D TV transmitter. After the first
1500 systems, the i-3d transmitter will be substituted for the H3D
transmitter.

To support C-3D's start-up while larger volume customers are in development,
IOD shall forward price all deliveries to assume a 10K per month volume
during the first six months of the Agreement. After six months, IOD and C3D
shall meet to review pricing based on actual demand.

2.   TERMS OF DELIVERY

The terms of delivery are FOB Menlo Park.

The actual leadtime for the product is 4 weeks.

C-3D shall manage transportation of all Product.

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<PAGE>

Agreed:

i-O Display Systems, LLC
                                         ------------------------------------
(being duly authorized                   (being duly authorized
on behalf of the                         on behalf of the
party to execute this                    party to execute this
Agreement)                               Agreement)

----------------------------------       -----------------------------------
(Place and Date)                         (Place and Date)

----------------------------------       -----------------------------------
Signature:                               Signature:
Name:                                    Name:
Position:                                Position:

----------------------------------       -----------------------------------
Signature:                               Signature:
Name:                                    Name:
Position:                                Position:

                                       228
<PAGE>

         PART 3 OF THE PRODUCT ARRANGEMENTS - DELIVERY DATES, FLEX MODEL

                 STRATEGIC PROCUREMENT AGREEMENT DATED 09-01-99
                        BETWEEN I-O DISPLAY SYSTEMS, LLC
                             AND C-3D DIGITAL, INC.

                         (SUPERSEDES ALL FORMER PART 3S
                           OF THE PRODUCT ARRANGEMENTS
                                 RELATED TO THE
                            BELOW MENTIONED PRODUCT).

1.   PURCHASING ORDERS

C-3D will purchase products only by issuing purchase orders to IOD signed by
C-3D's President or Vice President. The Purchase orders shall be blanket
purchase orders and shall be subject to cancellation in whole or in part
consistent with the scheduling provisions below. IOD will send written
confirmation of orders within 4 working days with all C-3D references (see
item 4). If IOD fails to return the acknowledgment either electronically or
by return fax, IOD will be deemed to have accepted any order which conforms
with the terms of this agreement. No additional or different provisions
proposed by C-3D shall apply unless expressly agreed to in writing by IOD.
IOD hereby gives notice of its objection to any additional or different terms.

The first purchase order for a minimum of the first 1,500 systems.

2.   ORDER - AND FORECAST SHEET

C-3D will provide at the beginning of every week a twelve (12) week rolling
forecast sheet to the supplier in a form consistent to the attached. IOD
shall complete the columns numbered (6) "Finished Goods Inventory" and (7)
"Expected Run Rate". The supplier shall return the completed form sheet
latest by Tuesday after receipt.

3.   DELIVERIES

Forecast Delivery Dates and actual Shipment Release Dates shall be
communicated to IOD via a weekly Hub Spreadsheet. IOD is authorized to make
shipments only on dates highlighted in green for the week. The ship dates on
the Hub Spreadsheet are always considered as pick-up dates of the products in
Menlo Park at the IOD factory.

IOD shall submit "Delivery Advice Notes" to C-3D immediately (same day) after
hand over of the products to the forwarder.

4.   PAPERWORK

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<PAGE>

C-3D shall include following reference data on all documents:

-    Purchase Order No.

-    IOD Part Number

-    Quantity

-    Price

-    Pick-up-date

Besides those items, on each Delivery Advice Note has to be written:

-    Forwarder

-    Tracking No.

5.   FLEXIBILITY AGREEMENT

Changes to delivery dates and quantities may only be made by C-3D's
authorized purchasing representatives. C-3D may, without cost or liability,
issue change requests for product quantities and schedule dates in accordance
with below mentioned models. Written confirmation shall be sent by IOD to
C-3D within two (2) work days after receipt of change request.

Each Monday, C-3D shall provide IOD with a Hub Spreadsheet for each product
and ship-to location. The hub spreadsheet shall include:

     12.  A product consumption forecast.  This is a forecast only and not a
          purchase commitment. Purchase commitments are only made by C-3D in
          the form of a Purchase Order signed by C-3D's President or Vice
          President.

     13.  A "Minimum End of Life Quantity".  This number represents C-3D
          absolute maximum commitment to accept future product or components
          from future product. (The Minimum End of Life quantity should
          always be a number that is less than the actual open purchase order
          quantity. If the actual open purchase order quantity is less than
          the "Minimum End of Life Quantity" on the hub spreadsheet, C-3D's
          actual commitment will be the lesser of the two.)

     14.  Max.  IOD Finished Goods Inventory: This number represents the
          target finished goods inventory and the absolute maximum finished
          goods inventory IOD should have in stock ready for shipment. IOD
          should continue to build finished goods inventory until the "Max.
          IOD finished Goods Inventory" number is reached.

          NOTE: C-3D SHALL BE OBLIGATED TO PURCHASE ANY RAW MATERIALS IOD HAS
          ON HAND AT DIRECT IOD COST UP TO THE TOTAL MATERIALS ALREADY
          PURCHASED BY IOD DEDICATED ONLY TO THE ASSEMBLY OF THE "MINIMUM END
          OF LIFE" QUANTITY LESS "MAX. IOD FINISHED GOODS INVENTORY" QUANTITY.

                                       230
<PAGE>

Agreed:

i-O Display Systems, LLC
                                        -----------------------------------
(being duly authorized                  (being duly authorized
on behalf of the                        on behalf of the
party to execute this                   party to execute this
Agreement)                              Agreement)

----------------------------------      -----------------------------------
(Place and Date)                        (Place and Date)

----------------------------------      -----------------------------------
Signature:                              Signature:
Name:                                   Name:
Position:                               Position:

----------------------------------      -----------------------------------
Signature:                              Signature:
Name:                                   Name:
Position:                               Position:

                                       231

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