Document:

Exhibit 10.1

                             CONFIDENTIAL TREATMENT

                                  REDACTED COPY

                  ASSET PURCHASE AND SOFTWARE LICENSE AGREEMENT

                                 By and between

                                 WILDFORM, INC.
                                    (Seller)

                                       and

                             ON2 TECHNOLOGIES, INC.
                                     (Buyer)

                            Dated as of April 4, 2005

NOTE: Confidential portions of this exhibit have been omitted and filed
separately with the Securities and Exchange Commission with a request for
confidential treatment pursuant to Rule 24b-2. The location of each omitted
portion is indicated by the phrase "**CONFIDENTIAL TREATMENT REQUESTED**" in
lieu of the confidential portion (see Sections 8.4, 9.2(b), 9.2(d) and 9.2(e)).

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                                TABLE OF CONTENTS

                                                                            Page

ARTICLE 1 DEFINITIONS..........................................................1

ARTICLE 2 SALE AND PURCHASE OF PURCHASED ASSETS; LICENSE OF LICENSED
          ASSETS...............................................................7

         2.1.     Purchased Assets.............................................7
         2.2.     Retained Assets..............................................7

ARTICLE 3 LIABILITIES..........................................................7

         3.1.     Assumed Liabilities. ........................................7
         3.2.     Retained Liabilities.........................................8

ARTICLE 4 PRICE ...............................................................8

         4.1.     Purchase Price...............................................8
         4.2.     Payment of Purchase Price....................................8

ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF SELLER.............................9

         5.1.     Organization; Power and Authority............................9
         5.2.     Due Authorization and Execution; Effect of Agreement.........9
         5.3.     Financial Information........................................9
         5.4.     Title to Purchased Assets....................................9
         5.5.     Contracts....................................................9
         5.7.     Litigation...................................................9
         5.8.     Taxes.......................................................10
         5.10.    Permits. ...................................................10
         5.11.    Sufficiency of Purchased Assets and Licensed IP.............11
         5.12.    Flix Intellectual Property..................................11
         5.13.    No Conflict.................................................11
         5.14.    Absence of Certain Changes. Except as disclosed in
                  Schedule 5.14, since December 31, 2004, there has
                  been no change or event that has had or could
                  reasonably be expected to have a Material Adverse
                  Effect. ....................................................11
         5.15.    Disclosure....................................................

ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF BUYER.............................11

         6.1.     Organization; Power and Authority...........................11
         6.2.     Due Authorization and Execution; Effect of Agreement........11

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ARTICLE 7 COVENANTS OF SELLER.................................................12

         7.1.     Cooperation by Seller.......................................12
         7.2.     Pre-Closing Access to Information...........................12
         7.3.     Conduct of Business.........................................13
         7.4.     Non-Transferability.........................................13
         7.5.     Further Assurances..........................................13
         7.6.     Governmental Matters........................................13
         7.8.     No Solicitation of Other Offers.............................13
         7.9.     Advice of Changes...........................................13
         7.10.    Books and Records; Personnel................................13
         7.11.    Satisfaction of Retained Liabilities........................

ARTICLE 8 COVENANTS OF BUYER..................................................14

         8.1.     Cooperation by Buyer........................................14
         8.2.     Further Assurances..........................................14

ARTICLE 9 SELLER LICENSES.....................................................15

         9.1.     Flix Engine Intellectual Property...........................15

ARTICLE 10 CONDITIONS PRECEDENT TO CLOSING....................................19

         10.1.    Conditions Precedent to Buyer's Obligations.................19
         10.2.    Conditions Precedent to Seller's Obligations................20

ARTICLE 11 CLOSING............................................................21

         11.1.    Time and Place..............................................21
         11.2.    Items to be Delivered by Seller.............................21
         11.3.    Items to be Delivered by Buyer..............................21

ARTICLE 12 TERMINATION PRIOR TO CLOSING DATE..................................22

         12.1.    Termination.................................................22
         12.2.    Effect of Termination.......................................22

ARTICLE 13 INDEMNIFICATION AND PROCEDURES.....................................22

         13.1.    Indemnification by Seller...................................22
         13.2.    Indemnification by Buyer....................................23
         13.3.    Notice and Resolution of Claim..............................23
         13.4.    Non Third-Party Claims......................................24
         13.5.    Payment and Assignment of Claims; Rights of Offset..........24
         13.6.    Limits on Indemnification...................................25
         13.7.    Indemnity Payments..........................................26

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ARTICLE 14 RESTRICTIVE COVENANT...............................................26

         14.1.    Covenants Not to Compete....................................26
         14.2.    Obligations Not to Compete as Inducement and
                  Consideration to Buyer......................................26
         14.3.    Enforceability..............................................27

ARTICLE 15 MISCELLANEOUS......................................................27

         15.1.    Enforceability..............................................27
         15.2.    Successors and Assigns......................................27
         15.3.    Counterparts................................................28
         15.4.    Headings....................................................28
         15.5.    Waiver......................................................28
         15.6.    Brokers' Fees...............................................28
         15.7.    Sales and Transfer Taxes....................................28
         15.8.    No Third-Party Beneficiaries................................28
         15.9.    Expenses....................................................28
         15.10.   Notices. ...................................................29
         15.11.   Bulk Sales Laws.............................................29
         15.12.   Governing Law...............................................29
         15.13.   Public Announcements........................................29
         15.14.   Exclusive Jurisdiction and Consent to Service of Process....30
         15.15.   Entire Agreement; Amendment.................................30

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                                                                            Page

List of Schedules

Schedule 1.42              Licensed E-Commerce Software
Schedule 1.43              Licensed Flix Software
Schedule 1.57              Purchased Flix Software
Schedule 5.10(a)           Purchased Intellectual Property
Schedule 5.9(b)            Third Party Intellectual Property

Exhibits

Exhibit A                  Form of Escrow Agreement
Exhibit B                  Form of Flix Agreement
Exhibit C                  Intentionally Omitted.
Exhibit D                  Form of Registration Rights Agreement
Exhibit E                  Form of EULA

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                  ASSET PURCHASE AND SOFTWARE LICENSE AGREEMENT

            THIS ASSET PURCHASE AND SOFTWARE LICENSE AGREEMENT is made and
entered into as of this 4th day of April, 2005, by and between Wildform, Inc., a
corporation organized and existing under the laws of the State of California,
and On2 Technologies, Inc., a corporation organized and existing under the laws
of the State of Delaware. Unless otherwise defined herein, terms the first
letter of which are capitalized herein shall have the meanings ascribed to them
in Article 1.

                              W I T N E S S E T H:

            WHEREAS, Seller develops and sells licenses to certain computer
software products that encode video in the Flash format; and

            WHEREAS, Seller desires to sell and assign to Buyer, and Buyer
desires to purchase and assume from Seller, the Purchased Assets and the Assumed
Liabilities and to receive a license to the Licensed Intellectual Property,
subject to all of the terms and conditions hereof; and

            WHEREAS, Seller desires to continue to develop and sell licenses to
New Products.

            NOW, THEREFORE, Buyer and Seller, in consideration of the
representations, warranties and covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and subject to the terms and conditions hereinafter set forth, and
intending to be legally bound, do hereby agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

      For purposes of this Agreement:

            1.1. "Action" means any action, suit, arbitration, inquiry,
proceeding or investigation by or before any court, governmental or other
regulatory or administrative agency or commission or other tribunal, including
without limitation any arbitrator.

            1.2. "Affiliate" means, with respect to any Entity, any other Entity
directly or indirectly controlling, controlled by, or under common control with
such other Entity. For purposes of the immediately preceding sentence, the term
"control" (including, with correlative meanings, the terms "controlled by" and
"under common control with" as used with respect to any Entity) means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Entity whether through
ownership of voting securities, by contract or otherwise.

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            1.3. "Agreement" means this Asset Purchase And Software License
Agreement.

            1.4. "Assignment and Assumption Agreement" shall have the meaning
set forth in Section 11.2(d).

            1.5. "Assumed Liabilities" shall have the meaning set forth in
Section 3.1.

            1.6. "Attorneys' Fees" means all reasonable outside attorneys' fees
and out-of-pocket expenses.

            1.7. "Autodesk" means Autodesk, Inc., a corporation organized under
the laws of Delaware.

            1.8. "Blank" means Jonathan Blank, an individual with the following
mailing address: c/o Wildform, Inc., 8725 Venice Boulevard, Los Angeles,
California 90034.

            1.9. "Books and Record Event" means the occurrence of any of the
following two events: (a) On2 being required under applicable SEC rules to
conduct an audit of historical financial information relating to the Purchased
Assets or Licensed Assets or (b) a claim asserted against Buyer or any other
member of Buyer Group by a third party for which Buyer or any other member of
Buyer Group is entitled to indemnification from Seller pursuant to Section 13.1
hereof.

            1.10. "Buyer" means On2 Technologies, Inc., with its principal place
of business located at 21 Corporate Drive, Suite 103, Clifton Park, New York.

            1.11. "Buyer Group" shall have the meaning set forth in Section
13.1.

            1.12. "Buyer License" means the licenses granted by Buyer to Seller
under Sections 9.2(a) and (b).

            1.13. "Buyer Licensed Software" means (i) the object and source code
of the Purchased Flix Software and, (ii) when made generally available for
commercial licenses, the Flash 8 Software, and related documentation.

            1.14. "Change of Control" shall have the meaning set forth in
Section 15.2.

            1.15. "Closing" shall have the meaning set forth in Section 4.2.

            1.16. "Closing Date" shall have the meaning set forth in Section
11.1.

            1.17. "Closing Date Payment Amount" means One Million Fifteen
Thousand Dollars ($1,015,000).

            1.18. "Contracts" means all written non-click through license
agreements and royalty bearing agreements (whether currently-effective or
expired or terminated during the last 18 months prior to the Effective Date)
relating to the Licensed Flix Software or Purchased Flix Software.

                                       2
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            1.19. "Damages" means any and all debts, losses, claims, damages,
costs, fines, judgments, penalties, obligations, payments, expenses and
liabilities of every type and nature (including without limitation those arising
out of any Action), together with any reasonable costs and expenses (including,
without limitation, Attorneys' Fees) incurred in connection with any of the
foregoing, including, without limitation, the reasonable cost of the
investigation, preparation or defense of any Action in connection therewith;
provided, however, that the foregoing shall be net of tax benefits, insurance
proceeds or other recoveries from third parties.

            1.20. "Devitt" means Colby Devitt, an individual with the following
mailing address: c/o Wildform, Inc., 8725 Venice Boulevard, Los Angeles,
California 90034.

            1.21. "Discreet Contract" means that certain License Agreement by
and between Seller and Autodesk, Inc., dated as of March 17, 2005.

            1.22. "Dollars" or "$" means the lawful money of the United States
of America.

            1.23. "Effective Date" shall the date first set forth above.

            1.24. "Employee" means any employee of Seller.

            1.25. "Entity" means any individual, corporation, partnership,
limited liability company, trust or unincorporated organization or other entity.

            1.26. "Escrow Agreement" means an escrow agreement substantially in
the form attached hereto as Exhibit B.

            1.27. "Escrow Amount" means $200,000.

            1.28. "EULA" shall have the meaning set forth in Section 9.2(a)(2).

            1.29. "Flash Format" shall mean the Macromedia .flv and .swf file
formats and any successor thereto or derivative thereof used from time to time
for rich media files capable of being decoded, played and/or displayed on a
Flash Player.

            1.30. "Flash 8 Software" means the "Flix" engine (or equivalent
product) for Flash 8 video software (in any format supported by Macromedia,
including, but not limited to SWF and FLV), in source code and object code
format (it being understood that Buyer's codec shall not be provided in source
code (uncompiled) format), and related documentation, as well as any Updates
thereto, to be developed by Buyer using Buyer's codec that has been integrated
by Macromedia into Flash 8, provided that the Flash 8 Software shall only be
required to include single-pass encoding.

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            1.31. "Flash Video" means video compressed using a video codec and
stored or streamed in the Flash Format, but specifically not Flash Screen
Capture Video or video in any other format.

            1.32. "Flash Screen Capture Video" means video compressed using a
video codec that is specifically designed and optimized for the recording of a
computer screen in action and is stored or streamed in the Flash Format.

            1.33. "Flix Intellectual Property" has the meaning set forth in
Section 5.11.

            1.34. "Flash Player" means any past, present or future generation of
Macromedia's rich client software capable of displaying video, text, graphics,
animations, sound, application forms and other two-way communications.

            1.35. "Flix Agreement" means the Flix Support and Maintenance
Agreement to be executed by the Parties at the Closing substantially in the form
attached hereto as Exhibit C.

            1.36. "Flix Logos" means all right in the logos set forth on
Schedule 1.33.

            1.37. "Flix Mark" means all rights in the trademark "FLIX",
including, without limitation, the following registration: "FLIX", USPTO Reg.
No. 2,717,548, Registered May 20, 2003.

            1.38. "Foreign Patent Rights" mean all patents granted by or patent
applications pending before government patent authorities outside of the United
States.

            1.39. "Intellectual Property" means domestic and foreign letters
patent, patents, patent applications, docketed patent disclosures, patent
licenses, other patent rights, trademarks, trademark registrations, trademark
applications, trademark licenses, other trademark rights, service marks, service
mark registrations, service mark applications, service mark licenses, other
service mark rights, company names, trade names, trade name licenses, trade
dress, brand names, brand marks, logos, slogans, ideas, processes, copyrights,
copyright registrations, copyright applications, Know-How, Know-How licenses,
computer software owned, computer software licenses, computer data, licenses and
sublicenses granted and obtained with respect thereto, and any divisions,
extensions, renewals, reissues, continuations, or continuations in part, and
rights thereunder, remedies against infringement thereof, and rights to
protection of interests therein under the laws of all jurisdictions with respect
to any of the foregoing.

            1.40. "Know-How" means trade secrets, know-how (including product
know-how and use and application know-how), formulas, algorithms, product
designs, tool designs, inventions, specifications, quality control procedures,
manufacturing, cost and pricing data, engineering and other drawings,
technology, technical information, engineering data and design and engineering
specifications, research records, market surveys and promotional literature, and
supplier lists and similar data, including all depictions, descriptions,
drawings and plans thereof.

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            1.41. "Licensed Assets" means the Licensed Flix Software and
Licensed E-Commerce Software.

            1.42. "Licensed E-Commerce Software" means the object and source
code of the computer software listed on Schedule 1.40 to this Agreement, and
related documentation.

            1.43. "Licensed Flix Software" means the object and source code of
the computer software listed on Schedule 1.41 to this Agreement, and related
documentation.

            1.44. "Licensed Intellectual Property" means Seller's rights in
Intellectual Property used in the design, development, production and
commercialization of the Licensed Assets, but not including the Licensed Patent
Rights

            1.45. "Licensed Patent Rights" means Seller's patent rights in the
invention claimed in U.S. Patent Application No. 09/880,169.

            1.46. "Lien" means any lien, mortgage, security interest, charge,
pledge, retention of title agreement, adverse claim, easement, encroachment,
restrictive covenant or other encumbrance affecting title to any property of any
sort.

            1.47. "Macromedia" means Macromedia, Inc.

            1.48. "Material Adverse Effect" means (a) an adverse effect on the,
the Purchased Assets, Assumed Liabilities, Licensed Intellectual Property,
financial condition or results of operations of Seller, taken as a whole
(without giving effect to any effect on the Retained Assets or the Retained
Liabilities), or (b) a material adverse effect on the ability of Seller to
consummate the transactions contemplated by this Agreement.

            1.49. "New Products" means the software being developed by Seller as
a presentation, e-learning and Flash authoring application with multiple input
and output formats and features including screen capture, drawing, text,
animation, video/audio encoding, etc., and all updates, upgrades and
modifications thereto. The "New Products" may appear under a single program, or
multiple versions such as "Pro", "Lite", "Deluxe" etc. that have more or fewer
capabilities.

            1.50. "Non-Competition Agreements" shall mean non-competition
agreements between Buyer and each of Blank and Devitt containing the
restrictions set forth in Article 14 hereof.

            1.51. "Party" means Buyer or Seller, referred to individually, and
"Parties" means Buyer and Seller, referred to collectively.

            1.52. "Permits" means the permits, licenses, certificates, orders,
consents, authorizations, franchises and other approvals from, or required by,
any governmental authority that are used by or necessary to own and to
commercialize the Purchased Assets, as currently configured and normally
operated (or as proposed or required to be configured or operated), together
with any applications for the issuance, renewal, modification, extension or
expansion thereof and all supporting information and analyses.

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            1.53. "Permitted Activities" shall have the meaning set forth in
Section 14.1.

            1.54. "Purchase Price" shall have the meaning set forth in Section
4.1.

            1.55. "Purchased Assets" shall have the meaning set forth in Section
2.1.

            1.56. "Purchased Intellectual Property" shall have the meaning set
forth in Section 5.9(a).

            1.57. "Purchased Flix Software" means the object code and source
code of those portions of the Flix Pro software product listed on Schedule 1.37
to this Agreement, and related documentation.

            1.58. "Registration Rights Agreement" means the agreement to be
executed by the Parties at the Closing substantially in the form set forth in
Exhibit E.

            1.59. "Retained Assets" shall have the meaning set forth in Section
2.2.

            1.60. "Retained Liabilities" shall have the meaning set forth in
Section 3.2.

            1.61. "Returns" shall have the meaning set forth in Section 5.6(a).

            1.62. "Sale" means the purchase of the Purchased Assets and the
assumption of the Assumed Liabilities by Buyer at the Closing.

            1.63. "Seller" means Wildform, Inc., a corporation organized and
existing under the laws of the State of California, with its principal place of
business located at 8725 Venice Boulevard, Los Angeles, California 90034.

            1.64. "Seller Group" shall have the meaning set forth in Section
13.2.

            1.65. "Survival Period" shall have the meaning set forth in Section
13.6(c).

            1.66. "Tax" or "Taxes" means (a) all income, profits, franchise,
gross receipts, capital, sales, use, withholding, municipal license (patents),
value added, ad valorem, transfer, employment, social security, disability,
occupation, property, severance, production, excise and other taxes, duties and
other similar governmental charges and assessments imposed by or on behalf of
any government or taxing authority (including interest and penalties thereon and
additions thereto), and (b) any obligations under any agreements or arrangements
with respect to any Taxes described in clause (a) above.

            1.67. "Third Party Intellectual Property" shall have the meaning set
forth in Section 5.9(b).

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            1.68. "United States" means the 50 states of the United States of
America and the District of Columbia.

            1.69. "Update" means changes or additions to the Flash 8 Software
made generally commercially available by Buyer, including, without limitation,
revisions, patches and bug fixes and maintenance releases, but not new versions.

                                    ARTICLE 2

        SALE AND PURCHASE OF PURCHASED ASSETS; LICENSE OF LICENSED ASSETS

            2.1. Purchased Assets. Subject to the terms and conditions hereof,
Seller shall sell, assign, transfer and deliver to Buyer, and Buyer shall
purchase, pay for and accept from Seller, the Purchased Assets. The sale,
assignment, transfer and delivery of the Purchased Assets shall be free and
clear of all Liens. Without limiting the generality of the foregoing, the term
"Purchased Assets" shall mean, as the same exist on the Closing Date:

            (a)   The Purchased Intellectual Property;

            (b)   the Purchased Software;

            (c)   the Flix Mark and Flix Logos;

            (d)   the Discreet Contract; and

            (e)   the goodwill and going concern value and other intangible
                  assets, if any, of Seller relating to the Purchased Assets.

            2.2. Retained Assets. Notwithstanding anything contained herein to
the contrary, Seller shall not sell, and Buyer shall not acquire any and all
assets of Seller not included in the Purchased Assets (the "Retained Assets").
Without limiting the generality of the foregoing, the Retained Assets shall
include the Licensed Assets and all accounts and notes receivables arising from
the Purchased Assets prior to the Closing Date.

            2.3. Licensed Assets. Subject to the terms and conditions hereof,
Seller, as licensor, shall license to Buyer, as licensee, the Licensed Assets
pursuant to the terms of Article 9 hereof.

                                    ARTICLE 3

                                   LIABILITIES

            3.1. Assumed Liabilities. On the Closing Date, Buyer shall assume
and agree to pay, perform and discharge only (i) those liabilities and
obligations accruing or arising after the Closing Date in respect of ownership
of the Purchased Assets and (ii) the obligations arising under the Discreet
Contract (collectively, the "Assumed Liabilities") except for the First Year
Discreet Support Obligation to the extent assumed by Seller pursuant to Section
8.5 hereof. Except as specifically set forth in the preceding sentence, Buyer
shall not assume any other liabilities or obligations whatsoever of Seller.

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            3.2. Retained Liabilities. Notwithstanding anything herein to the
contrary, Seller agrees that it shall retain, and acknowledges that Buyer has
not agreed to pay, shall not assume and shall not have any liability or
obligation with respect to, any and all liabilities and obligations of Seller,
whether fixed, absolute or contingent, material or immaterial, matured or
unmatured, other than the Assumed Liabilities (the "Retained Liabilities").
Without limiting the generality of the foregoing, Retained Liabilities shall
include the following:

                  (a) All liabilities and obligations for Taxes in respect of
the ownership or use of the Purchased Assets and the Licensed Flix Software
prior to the Closing Date;

                  (b) All liabilities and obligations of or incurred by Seller
or any of its Affiliates to the extent relating to the Retained Assets;

                  (c) All liabilities and obligations to the extent arising out
of circumstances or events occurring or existing on or prior to the Closing
Date, including, without limitation, Actions pending or threatened on or prior
to the Closing Date, including without limitation, any claims by Sorenson Media,
Inc. ("Sorenson") for damages arising out of any infringement by any of the Flix
Intellectual Property on any intellectual property rights of Sorenson;

                  (d) Any customer refunds, rebates or returns relating to
products containing the Purchased Assets or Licensed Assets sold on or prior to
the Closing; and

                  (e) The First Year Discreet Support Obligation, to the extent
assumed by Seller pursuant to Section 8.5 hereof.

                                    ARTICLE 4

                                      PRICE

            4.1. Purchase Price. The aggregate purchase price to be paid by
Buyer to Seller pursuant to this Agreement (the "Purchase Price") shall consist
of (a) the Closing Date Payment Amount, (b) the Escrow Amount, and (c) the
assumption of the Assumed Liabilities.

            4.2. Payment of Purchase Price.

                  (a) Closing Date Payment Amount. At the closing of the
transactions contemplated hereby (the "Closing"), Buyer shall wire transfer, or
cause to be wire transferred, to a bank account designated by Seller in writing
at least three (3) business days prior to the Closing, in immediately available
funds in Dollars, the Closing Date Payment Amount.

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                  (b) Escrow Amount. In addition, at the Closing, Buyer shall
deposit with McGuireWoods LLP (the "Escrow Agent"), the Escrow Amount in
immediately available funds in Dollars pursuant to the terms of the Escrow
Agreement.

                                    ARTICLE 5

                    REPRESENTATIONS AND WARRANTIES OF SELLER

            Seller makes the following representations and warranties to Buyer,
each of which is true and correct on the date hereof, and shall survive after
the Closing in accordance with Section 13.6(b).

            5.1. Organization; Power and Authority. Seller is a corporation duly
organized, validly existing and in good standing under the laws of California.
The Seller owns no equity interest in any other Entity. Seller has all requisite
corporate power and authority to own or lease the Purchased Assets and Licensed
Assets, to execute, deliver and perform its obligations under this Agreement and
to consummate the transactions contemplated hereby.

            5.2. Due Authorization and Execution; Effect of Agreement. The
execution, delivery and performance by Seller of this Agreement and the
consummation by Seller of the transactions contemplated hereby have been duly
authorized by all necessary corporate action required to be taken on the part of
Seller. This Agreement has been duly and validly executed and delivered by
Seller and constitutes the valid and binding obligation of Seller, enforceable
in accordance with its terms.

            5.3. Financial Information. Schedule 5.3 annexed hereto contains a
copy of the unaudited schedule of Seller's revenue for the fiscal year ended
December 31, 2004 (the "Revenue"), and a good faith estimate of the allocation
of such revenue to the Purchased Assets and Licensed Assets (the "Financial
Schedule"). The Financial Schedule was prepared in accordance with the books and
records of Seller and presents fairly the Revenues on a cash basis (when payment
was received by Seller). The books and records of Seller are in all material
respects complete and correct and have been maintained in accordance with good
business practice. All amounts reflected on the Financial Schedule arose from
bona fide transactions with unrelated parties in the ordinary course of
business.

            5.4. Title to Purchased Assets. Except as set forth on Schedule 5.4,
Seller has good and exclusive title to the Purchased Assets and Licensed Assets
free and clear of all Liens. As of the Closing Date, the Purchased Assets shall
be free and clear of all Liens.

            5.5. Contracts. Schedule 5.5 sets forth all of the Contracts. True
and correct copies of all Contracts and any amendments thereto have been
delivered to Buyer.

            5.6. Litigation. Except as set forth on Schedule 5.7, no judgment,
order, writ, injunction or decree of any court or other governmental agency is
in effect against or with respect to Seller noris any Action related to the
Purchased Assets pending or, to Seller's best knowledge, threatened.

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            5.7. Taxes. All federal, state, local, foreign and other tax
returns, estimates, reports, declarations and forms (collectively, "Returns")
relating to the Purchased Assets required to be filed have been accurately
prepared and timely filed. Except for Taxes that are being contested in good
faith and by appropriate proceedings, the following Taxes have (or by the
Closing Date will have) been duly and timely paid: (i) all Taxes shown to be due
on the Returns; and (ii) all deficiencies and assessments of Taxes of which
written notice has (or by the Closing Date will have) been received by Seller
that are or may become chargeable as a Lien upon the assets thereof. All Taxes
required to be withheld with respect to the Purchased Assets and by or on behalf
of Seller have been withheld, and such withheld Taxes have either been duly and
timely paid to the proper governmental agencies or authorities or, if such
payment is not yet due, set aside in accounts for such purpose and will be paid
when due. No state or local sales taxes have been collected or are required to
be collected in connection with the Purchased Assets.

            5.8. Compliance with Laws. Seller is in material compliance with all
federal, state, territorial, local and foreign laws, statutes, rules,
regulations, judgments, orders, writs, injunctions and decrees applicable to the
Purchased Assets. To Seller's best knowledge, there is no Action pending or
threatened relating to the foregoing.

            5.9. Permits. Seller has obtained all Permits.

            5.10. Intellectual Property.

                  (a) Schedule 5.10(a) sets forth a complete and correct list of
Seller's Intellectual Property used in the design, development, production and
commercialization of the Purchased Assets (the "Purchased Intellectual Property"
and, collectively with the Licensed Intellectual Property, the "Flix
Intellectual Property"). None of the Flix Intellectual Property is the subject
of any claim of invalidity and each is in full force and effect.

                  (b) Schedule 5.10(b) hereto sets forth a complete and correct
list of all licenses to and from third parties for Intellectual Property used in
the design, development, production and commercialization of the Purchased
Assets and Licensed Assets (the "Third Party Intellectual Property").

                  (c) Seller owns all right, title and interest in the Purchased
Intellectual Property. Except as set forth in Schedule 5.10(c), Seller owns all
right, title and interest in and to, or holds valid licenses (as of the
Effective Date) from third parties for, Intellectual Property necessary for or
used in the design, development, production and commercialization of
thePurchased Assetsand the Licensed Assets.

                  (d) Except with respect to Foreign Patent Rights and only to
the extent set forth in the second sentence of this subsection 5.10(d), the
Purchased Assets and Licensed Assets, do not (as of the Effective Date) infringe
or, to the best of Seller's knowledge, allegedly infringe upon any rights owned
or held by any other Entity. Notwithstanding the foregoing sentence, to the best
of Seller's knowledge, the Purchased Assets and Licensed Assets do not infringe

                                       10
<PAGE>

or allegedly infringe upon any Foreign Patent Rights owned or held by any other
Entity. There is not pending or, to Seller's best knowledge, threatened any
claim or Action against Seller or any Seller Affiliate contesting their rights
to any Intellectual Property or the validity of the Intellectual Property, and
there is to the best of Seller's knowledge no infringement of the Purchased
Intellectual Property or Licensed Intellectual Property by any other Entity.

            5.11. No Conflict. Except as set forth on Schedule 5.11, the
execution, delivery and performance by Seller of this Agreement and the
consummation by Seller of the transactions contemplated hereby: (a) will not
result in a violation by Seller of any provision of any law, rule or regulation,
order, writ, injunction, judgment or decree applicable to Seller with respect to
any Purchased Asset or Licensed Asset; (b) will not require any consent or
approval of, or filing with or notice to, any governmental or regulatory
authority under any provisions of law applicable to Seller; (c) will not violate
any provisions of the Certificate of Incorporation or By-Laws or comparable
documents of Seller; (d) will not require any consent, approval or notice under,
and will not conflict with, or result in the breach or termination of, or
constitute a default, or an event which with notice or lapse of time or both
would constitute a default under, or result in the acceleration of the
performance by Seller under, any Contract or Permit; and (e) will not result in
the creation of any Lien upon any of the Purchased Assets. No Entity has any
right of first refusal, preemptive right, option or other right to acquire any
of the Purchased Assets.

            5.12. Absence of Certain Changes. Except as disclosed in Schedule
5.12, since December 31, 2004, there has been no change or event that has had or
could reasonably be expected to have a Material Adverse Effect.

                                    ARTICLE 6

                     REPRESENTATIONS AND WARRANTIES OF BUYER

            Buyer makes the following representations and warranties to Seller,
each of which is true and correct on the date hereof, and shall survive after
the Closing in accordance with Section 13.6(b).

            6.1. Organization; Power and Authority. Buyer is a corporation duly
organized, validly existing and in good standing under the laws of Delaware.
Buyer has, or as of the Closing Date will have, all requisite power and
authority, corporate and otherwise, to execute, deliver and perform the
obligations of Buyer under this Agreement and to consummate the transactions
contemplated hereby.

            6.2. Due Authorization and Execution; Effect of Agreement. The
execution, delivery and performance by Buyer of this Agreement and the
consummation by Buyer of the transactions contemplated hereby have been or will
be as of the Closing Date duly authorized by all necessary corporate action
required to be taken on the part of Buyer. This Agreement has been duly and
validly executed and delivered by Buyer and constitutes the valid and binding
obligation of Buyer, enforceable in accordance with its terms.

                                       11
<PAGE>

            6.3. Macromedia Agreement. As of the Closing Date, Buyer has entered
into an agreement with Macromedia providing, in relevant part, that Macromedia
has a license to use Buyer's VP6 and/or VP7 codecs in the Flash Player and, to
Buyer's best knowledge, Macromedia intends to use the VP6 and/or VP7 codec in
Flash 8.

                                    ARTICLE 7

                               COVENANTS OF SELLER

            Seller hereby covenants and agrees with Buyer as follows:

            7.1. Cooperation by Seller. Prior to the Closing, Seller shall take
all actions and do all things necessary, proper or advisable to consummate and
make effective as promptly as practicable the transactions contemplated by this
Agreement and to cooperate with others in connection with the foregoing,
including using reasonable efforts (a) to secure all consents, waivers,
approvals, authorizations, tax exemptions and other governmental benefits and
Permits from governmental agencies, or third parties as shall be required in
order to enable Seller and Buyer to effect the transactions contemplated by this
Agreement, (b) to lift or rescind any injunction or restraining order against
the transactions, (c) to effect any necessary registrations and filings, and (d)
to fulfill the conditions to Closing set forth in Section 10.1.

            7.2. Pre-Closing Access to Information. From the date hereof through
the Closing Date, Seller shall afford to Buyer and Buyer's accountants, counsel
and other representatives, reasonable access to, and upon request, copies of,
all of the properties, books, contracts, software, commitments and records of
Seller that are reasonably related to the Purchased Assets and/or Licensed
Assets.

            7.3. Conduct of Business. From the date hereof through the Closing
Date, except as may otherwise be expressly provided for in this Agreement,
Seller shall carry on the business related to the Purchased Assets and Licensed
Assets only in the ordinary and regular course consistent with past practices
and in compliance with all applicable laws. Seller further covenants to Buyer
that, without the prior written consent of Buyer, and except as may otherwise be
required under this Agreement, from the date hereof to the Closing, Seller will
not:

                  (a) permit to be incurred any Liens on any of the Purchased
      Assets;

                  (b) sell, transfer or otherwise dispose of any Purchased
      Assets, except in the ordinary course of business consistent with past
      practice or pursuant to agreements in effect on the date hereof;

                                       12
<PAGE>

                  (c) sell, assign, transfer, license, abandon or convey any of
      the Purchased Intellectual Property, provided that Seller may grant
      licenses in the ordinary course of business consistent with past practice;

                  (d) enter into any contract other than in the ordinary course
      of business consistent with past practice;

                  (e) agree or commit to take any action described in this
      Section 7.3.

            7.4. Non-Transferability. To the extent that any of the Purchased
Assets or Licensed Intellectual Property is not capable of being sold, assigned,
licensed, transferred or delivered or until the impediments to the sale,
assignment, transfer or delivery referred to therein are resolved, Seller shall
use commercially reasonable efforts, with the costs of Seller related thereto to
be promptly reimbursed by Buyer, to (i) provide, at the request of Buyer, to
Buyer the benefits of any such Purchased Asset and/or Licensed Intellectual
Property; (ii) cooperate in any reasonable and lawful arrangement designed to
provide such benefits to Buyer, without incurring any financial obligation to
Buyer, and (iii) enforce, at the request of and for the account of Buyer, any
rights of Seller arising from any such Purchased Asset and/or Licensed
Intellectual Property against any third person (including a government or
governmental agency or body), including the right to elect to terminate in
accordance with the terms thereof upon the advice of Buyer.

            7.5. Further Assurances. At any time and from time to time whether
before, at or after the Closing Date, Seller shall execute and deliver any
further instruments or documents and take all such further action as Buyer may
reasonably request in order to consummate more effectively the transactions
contemplated by this Agreement.

            7.6. Governmental Matters. Seller shall comply with the laws of any
state, province and country (including the United States) which are applicable
to the Sale, as contemplated hereby, and pursuant to which government
notification or approval of such transaction is necessary. Seller shall
cooperate with Buyer in providing any information about Seller that is required
for this purpose and in promptly filing, separately or jointly with Buyer, any
applications for such government notification or approval.

            7.7. No Solicitation of Other Offers. Seller agrees that it shall
not, and shall not permit any of its Affiliates, or any officers, directors,
employees, agents or representatives of any of the foregoing to, directly or
indirectly, solicit or initiate (including by way of furnishing any non-public
information concerning the or Seller) inquiries or proposals, or participate in
any discussions or negotiations or enter into any agreement with any Entity,
concerning an acquisition of all or any substantial portion of Seller or the
Purchased Assets, except for the transactions with Buyer contemplated by this
Agreement. Seller shall immediately advise Buyer of any such inquiry or
proposal, including the terms thereof and the identity of the Entity making such
inquiry or proposal. The obligations of Seller under this Section 7.7 shall
expire upon the earlier of the termination of this Agreement or the Closing.

            7.8. Books and Records. From and after the Closing Date, to the
extent reasonably required by Buyer solely in connection with any Books and
Records Event, Seller shall (subject to applicable contractual and privacy

                                       13
<PAGE>

obligations) allow Buyer and its agents reasonable access to all business
records and files (other than those containing competitively sensitive or
privileged information) of Seller related to the Purchased Assets or Licensed
Intellectual Property, that relate to periods prior to the Closing Date, upon
reasonable advance notice during normal working hours, and Buyer shall have the
right, at its own expense, to make copies of any such records and files,
provided, however, that any such access or copying shall be had or done in such
a manner so as not to interfere with the normal conduct of business. It shall be
Buyer's obligation to provide written proof and documentation of a Books and
Records Event to Seller prior to Seller providing any access to any of Seller's
records.

                                    ARTICLE 8

                               COVENANTS OF BUYER

            Buyer hereby covenants and agrees with Seller as follows:

            8.1. Cooperation by Buyer. Subject to its rights under Article 12,
prior to the Closing, Buyer will use all reasonable efforts to take all actions
and to do all things necessary, proper or advisable (but without any obligation
to expend funds) to consummate and make effective as promptly as practicable the
transactions contemplated by this Agreement and to cooperate with others in
connection with the foregoing, including using reasonable efforts to (a) secure
all consents, waivers, approvals, authorizations, tax exemptions and other
governmental benefits and Permits from governmental agencies or third parties as
shall be required in order to enable Buyer and Seller to effect the transactions
contemplated by this Agreement, (b) to lift or rescind any injunction or
restraining order against the transactions, (c) to effect any necessary
registrations and filings, and (d) to fulfill the conditions to Closing set
forth in Section 10.2.

            8.2. Further Assurances. Subject to the other terms and conditions
of this Agreement, at any time and from time to time whether at, before or after
the Closing Date, Buyer shall execute and deliver any further instruments or
documents and take all such further action as Seller may reasonably request in
order to consummate more effectively the transactions contemplated by this
Agreement.

            8.3. Non-Solicitation. Buyer agrees that, for a period of two (2)
years from the Closing, it shall not solicit (directly or indirectly) for
employment, hire or otherwise engage the services of any Employees, provided,
however, that no action taken by Buyer pursuant to and in compliance with the
Flix Agreement shall be interpreted as violating this Section 8.3.

            8.4. Discreet Royalty Payments. Buyer agrees to pay Seller
**CONFIDENTIAL TREATMENT REQUESTED** of any royalties ("Discreet Royalties")
actually paid to Buyer under the Discreet Contract (any such amounts owed to
Seller are referred to herein as "Royalty Fees"). Notwithstanding the foregoing,
Seller shall keep the entire **CONFIDENTIAL TREATMENT REQUESTED** pre-payment of
Discreet Royalties. Royalty Fees will be owed to Seller and accrue when Buyer
has received payment of Discreet Royalties from Autodesk. Within sixty (60) days
of the end of each calendar quarter, Buyer shall pay to Seller the amount of
Royalty Fees accrued in the prior quarter. Each Royalty Fee payment shall be
accompanied by a fee report (the "Fee Report") that sets forth the amount of
gross revenue generated in the period and a breakdown of the types of revenue
that comprise the total revenue amount. Seller shall have the right, on seven
(7) days' prior written notice, itself or through its professional advisors to
conduct an audit of Buyer's records to verify compliance with the terms of this
Agreement. Seller may exercise the foregoing right to audit once every 365 days.

                                       14
<PAGE>

            8.5. First Year Discreet Support Obligation. For the period from the
Effective Date until the one-year anniversary of the effective date of the
Discreet Contract (the "Discreet Support Period"), Seller shall provide any and
all technical and/or customer support pursuant to the Discreet Contract (the
"First Year Support Obligation"). Buyer shall pay Seller any amounts paid by
Autodesk to Buyer in consideration of the First Year Support Obligation.
Notwithstanding the foregoing, Seller shall only fulfill the First Year Support
Obligation and Buyer shall only be obligated to make payments to Seller pursuant
to this Section 8.5 if Autodesk has agreed in writing to permit Seller to
fulfill the First Year Discreet Support Obligation.

                                    ARTICLE 9

                                    LICENSES

            9.1. Seller Licenses.

                  (a) Licensed Flix Software. Effective as of Closing, and
subject to the terms and conditions hereof, Seller hereby grants Buyer a
perpetual, worldwide, paid-up, royalty-free, sublicensable, non-exclusive and
transferable license, under the Licensed Intellectual Property, to use,
reproduce, modify, and produce derivative works based on the Licensed Flix
Software. Buyer has full rights to sublicense any and all of the Licensed Flix
Software in any form and to grant Buyer's licensees the right to further
sublicense the Licensed Flix Software.

                  (b) Licensed E-Commerce Software. Effective as of Closing, and
subject to the terms and conditions hereof, Seller hereby grants Buyer a
perpetual, worldwide, paid-up, royalty-free, non-sublicensable, non-exclusive
and non-transferable (except as set forth in Section 15.2 hereof) license, under
the Licensed Intellectual Property, to use, reproduce, and modify the Licensed
E-Commerce Software and to produce derivative works based on the Licensed
E-Commerce Software.

                  (c) Licensed Patent Rights. Effective as of Closing, and
subject to the terms and conditions hereof, Seller hereby grants Buyer a
perpetual, worldwide, paid-up, royalty-free, non-sublicensable, non-exclusive
and non-transferable (except as set forth in Section 15.2 hereof) license, under
the Licensed Patent Rights, to make, use, sell or offer for sale (but only to
end-users) and import or export the Licensed Flix Software.

                                       15
<PAGE>

                  (d) Credit. Buyer shall provide Seller with a credit in the
Product Help files and About Boxes of any products that use the Licensed
Intellectual Property and in which Buyer has included its own credit. This
credit shall be substantially in the form: "Buyer [Product Name] uses Wildform
technology. (C) 2000-2005 Wildform, Inc. All Rights Reserved. For more
information see: http://www.wildform.com."

                  (e) Export Control. With respect to the licenses granted in
Sections 9.1(a)-(c), Buyer agrees to comply with all applicable export laws,
restrictions, national security controls and regulations of the United States

            9.2. Buyer License.

                  (a) License Grant.

                        (1) At Seller's option, and subject to timely payment of
Royalties, Buyer shall and hereby does grant to Seller, a non-exclusive,
non-transferable (except in accordance with Section 15.2 hereof), perpetual,
irrevocable, sublicensable, worldwide license to: (i) use the Purchased Flix
Software in connection with the development of the New Products; (ii) copy the
Purchased Flix Software in connection with the development the New Products;
(iii) modify and make derivative works of the Purchased Flix Software in
connection with the development of the New Products; and (iv) distribute or
transmit in any fashion and through any channel the Purchased Flix Software in
object code form solely as part of the New Products. Seller may only use the
Buyer Licensed Software subject to the terms of this Agreement. If Seller does
not elect to exercise the foregoing option, it shall provide Buyer with a
written declaration that it has obtained a valid license to integrate Flash 6/7
video software with the New Products from a licensor with the ability to
sublicense such software, or with the use of open source software. Seller shall
provide such a declaration promptly after commencing commercial distribution of
New Products containing Flash 6/7 video. Seller shall be deemed to have
exercised the foregoing option if Seller distributes the Flash 6/7 video
integrated with the New Products without providing to Buyer a written
declaration that it has otherwise obtained a license from a third party to do
so.

                        (2) At Seller's option, and subject to timely payment of
Royalties, Buyer shall and hereby does grant to Seller, a non-exclusive,
non-transferable (except in accordance with Section 15.2 hereof), perpetual,
irrevocable, sublicensable, worldwide license to: (i) use the Flash 8 Software
enable the New Products to encode video in the Flash 8 format (the "Flash 8
Feature"); (ii) copy the Flash 8 Software in connection with the development of
the Flash 8 Feature; (iii) modify and make derivative works of the Flash 8
Software in connection with the development of the Flash 8 Feature; and (iv)
distribute or transmit in any fashion and through any channel the Flash 8
Software in object code form solely as part of the New Products. Other than the
Flash 8 Feature, Seller agrees not to develop or add any features to the New
Products (including, without limitation screen capture video) based on or using
the Flash 8 Software. If Seller does not elect to exercise the foregoing option,
it shall provide Buyer with a written declaration that it has obtained a valid
license to integrate Flash 8 video software with the New Products from a
licensor with the ability to sublicense such software. Seller shall provide such
a declaration promptly after commencing commercial distribution of New Products
containing Flash 8 video. Seller shall be deemed to have exercised the foregoing
option if Seller distributes the Flash 8 Software integrated with the New
Products without providing to Buyer a written declaration that it has otherwise
obtained a license from a third party to do so.

                                       16
<PAGE>

                        (3) To the extent that Seller exercises its option under
Sections 9.2(a)(1) or 9.2(a)(2), Seller shall only distribute the Buyer Licensed
Software subject to end user license agreements that contain terms at least as
restrictive as Buyer's customary end used license agreement ("EULA"), a copy of
which is attached hereto as Exhibit E. Seller agrees to enforce the terms of the
EULA to the same extent that it enforces end user licenses of Seller-owned
technology, but in no event shall Seller use less than reasonable care in such
enforcement.

                        (4) Use Restrictions. Except as otherwise provided in
the Flix Agreement, the license grants in Sections 9.2(a)(1) and (2) are subject
to the following restrictions:

                              (i) The Purchased Flix Software and Flash 8
Software may not be distributed on a stand-alone basis or integrated with any
product other than the New Products,

                              (ii) Seller agrees that it will not alter, modify,
decompile, disassemble or reverse engineer the Flash 8 Software, and

                              (iii) Seller agrees that the New Products must
pass a "license key", which Buyer will provide to Seller. This license key will
allow the Flash 8 Software to encode, effectively binding the Flash 8 Software
to the New Products.

                        (5) Credit. Seller shall provide Buyer with a credit in
the Product Help files and About Boxes of any product that uses the Purchased
Assets or Flash 8 Software and in which Seller has included its own credit. This
credit shall be substantially in the form: "Seller [Product Name] uses On2 Video
technology. (C) 2000-2005 On2 Technologies, Inc. All Rights Reserved. For more
information see: http://www.on2.com."

                  (b) Royalties. To the extent that Seller exercises its option
under Sections 9.2(a)(1) or 9.2(a)(2), and in partial consideration of the
license grant in Section 9.2(a) hereof, Seller shall pay to Buyer royalties (the
"Royalties") of (i) **CONFIDENTIAL TREATMENT REQUESTED** for each copy of the
New Products sold or commercially distributed by Seller or Seller's successors,
assigns, resellers and distributors, which New Products contains any of the
Purchased Flix Software] and (ii) **CONFIDENTIAL TREATMENT REQUESTED** for each
copy of the New Products sold or commercially distributed by Seller or Seller's
successors, assigns, resellers and distributors, which New Product contains
Flash 8 Software. In the event that any New Products contains Flash 8 Software,
Seller shall be entitled to include the Purchased Flix Software in such New
Products without paying any additional Royalty, provided that Seller pays Buyer
the **CONFIDENTIAL TREATMENT REQUESTED** Flash 8 Software Royalty. The Royalties
shall be owed to Buyer and accrue when each New Products that incorporates the
relevant Buyer Licensed Software is sold, distributed, licensed, leased or
deployed.

                                       17
<PAGE>

                  The foregoing notwithstanding, Seller shall pay to Buyer a
Royalty of **CONFIDENTIAL TREATMENT REQUESTED** for each copy of the New
Products containing the Buyer Licensed Software that is sold or distributed by
Seller or Seller's successors, assigns, resellers and distributors:
**CONFIDENTIAL TREATMENT REQUESTED**. Seller shall pay no Royalty for: (i) use
of the Buyer Licensed Software for internal purposes; and (ii) copies of the New
Products containing the Buyer Licensed Software that are distributed
demonstration copies, which shall produce output containing a watermark, or on
copies of New Products provided without cost to up to 500 software reviewers or
up to 500 Beta users for each version of the New Products.

                  (c) Payment of Royalties; Audit Rights. Within thirty (30)
days of the end of each calendar quarter, Seller shall pay to Buyer the amount
of Royalties accrued in the prior quarter. Each Royalty payment shall be
accompanied by a fee report (the "Fee Report") that sets forth the number of
units sold in the period and a breakdown of the types of revenue that comprise
the total revenue amount. Upon reasonable notice to Seller, Buyer may cause an
audit to be made once annually of the applicable records of Seller in order to
verify Fee Reports. Any such audit shall be conducted by an independent
certified public account selected by Buyer (other than on a contingent fee
basis) and reasonably acceptable to Seller. The audit shall be conducted during
regular business hours at Seller `s offices and in such a manner as not to
interfere with Seller's normal business activities. Seller may require that the
persons conducting the audit sign confidentiality agreements as a condition of
access to Seller's books.

                  (d) Restrictions. Seller shall (a) not market or advertise the
new product as a "Flash video encoder", or a "Flash video converter", (b) limit
the information of the New Product's licensed Flash video encoding capabilities
in marketing or advertising materials to references to Flash video output (in
..flv and .swf and any other supported format) in a list of the New Product's
feature list and "supported formats" list (video output from the New Products
may be displayed in demonstrations, tutorials, samples and ads for the New
Products) and (c) not sell or allow the sale of any version of the New Products
through its website or newsletter that can encode Flash video (excluding screen
capture video) with as listed retail price on Seller's website of less than
**CONFIDENTIAL TREATMENT REQUESTED**, provided however that the New Products
with Flash video encoder can be sold for less than **CONFIDENTIAL TREATMENT
REQUESTED** if it is bundled with a third-party software product and offered for
sale by such third-party, provided further that 6 months after the release of
Flash 8, Wildform can offer the New Products with the Flash 7 MX SWF and FLV
video encoder (but not with Flash 8 video output) for as low as **CONFIDENTIAL
TREATMENT REQUESTED**.

                  (e) Maintenance; Technical Support. Buyer shall provide Seller
with the maintenance and technical support **CONFIDENTIAL TREATMENT REQUESTED**
of the Buyer Licensed Software and Flash 8 Software.

                                       18
<PAGE>

                  (f) Warranty. Buyer represents and warrants to Seller that:
(i) it has all requisite power and authority and holds all licenses, permits and
other required authorizations to grant the foregoing licenses to Seller; and
(ii) the Flash 8 Software and its production, delivery, use or distribution
shall not infringe upon or violate the rights of any third party, including
without limitation Intellectual Property rights. Notwithstanding anything in
Section 13.6 to the contrary, the total aggregate liability payable by Buyer for
any breach of the warranty contained in this Section 9.2(f) shall not exceed the
amount of Royalties paid by Seller to Buyer hereunder.

                                   ARTICLE 10

                         CONDITIONS PRECEDENT TO CLOSING

            10.1. Conditions Precedent to Buyer's Obligations. The obligation of
Buyer to consummate the transactions contemplated by this Agreement shall be
subject to the satisfaction of the following conditions, any or all of which
conditions may be waived by Buyer, in its sole discretion:

                  (a) Truth of Representations and Warranties. Each of the
representations and warranties made by Seller in this Agreement shall be true
and correct in all material respects on and as of the Closing Date with the same
force and effect as though such representation and warranty had been made or
given on and as of the Closing Date.

                  (b) Approvals. All required approvals and authorizations of,
filings with and notifications to, all regulatory authorities required for the
consummation of the transactions contemplated hereby shall have been obtained or
made and shall be in full force and effect.

                  (c) Litigation. No injunction or restraining order or other
order shall be in effect forbidding or enjoining the consummation of the
transactions contemplated hereby and no legal action or governmental
investigation shall be pending or threatened that, if adversely determined,
would reasonably be expected to result in any such injunction or order or in a
damage remedy resulting from consummation of such transactions.

                  (d) Covenants. Seller shall have performed and complied in all
material respects with all covenants and agreements required by this Agreement
to be performed by it prior to or at the Closing.

                  (e) Deliveries. Seller shall have made at the Closing the
deliveries to Buyer required to be delivered by Seller pursuant to Section 11.2.

                  (f) Legal Opinion. Buyer shall have received the written
opinion of Strategic Law Partners, LLP, counsel to Seller, dated as of the
Closing Date and in substantially the form attached hereto as Exhibit F (the
"Legal Opinion").

                                       19
<PAGE>

                  (g) No Material Adverse Effect. A Material Adverse Effect
shall not have occurred.

                  (h) Non-Competition Agreements. Blank and Devitt shall each
have entered into Non-Competition Agreements with Buyer.

                  (j) Flix Agreement. The Parties shall have executed the Flix
Agreement.

                  (k) Escrow Agreement. The Parties and the Escrow Agent shall
have executed the Escrow Agreement.

            10.2. Conditions Precedent to Seller's Obligations. The obligation
of Seller to consummate the transactions contemplated by this Agreement shall be
subject to the satisfaction of the following , any or all of which conditions
may be waived by Seller, in its sole discretion:

                  (a) Truth of Representations and Warranties. Each of the
representations and warranties made by Buyer in this Agreement shall be true and
correct in all material respects at and as of the Closing Date with the same
effect as though such representations and warranties had been made or given on
and as of the Closing Date.

                  (b) Approvals. All required approvals and authorizations of,
filings with and notifications to, all regulatory authorities required for the
consummation of the transactions contemplated hereby shall have been obtained or
made and shall be in full force and effect.

                  (c) Litigation. No injunction or restraining order or other
order shall be in effect forbidding or enjoining the consummation of the
transactions contemplated hereby and no legal action or governmental
investigation shall be pending or threatened which, if adversely determined,
would reasonably be expected to result in any such injunction or order or in a
damage remedy resulting from consummation of such transactions.

                  (d) Covenants. Buyer shall have performed and complied in all
material respects with all covenants and agreements required by this Agreement
to be performed by Buyer prior to or at the Closing.

                  (f) Registration Rights Agreement. The Parties shall have
executed the Registration Rights Agreement.

                  (e) Deliveries. Buyer shall have made at the Closing the
deliveries to Seller required to be delivered by Buyer pursuant to Section 11.3.

                                       20
<PAGE>

                                   ARTICLE 11

                                     CLOSING

            11.1. Time and Place. Subject to the terms and conditions of this
Agreement, the Closing shall take place by exchange of facsimile signatures at
1:00 p.m. PST, on April 29, 2005 or at such other time and place as the Parties
shall agree upon in writing (the "Closing Date").

            11.2. Items to be Delivered by Seller. At the Closing, Seller shall
deliver to Buyer or procure the following:

                  (a) To Buyer:

                  (i) An assignment of intellectual property in form and
substance reasonably satisfactory to Buyer conveying to Buyer the Purchased
Intellectual Property, duly executed by Seller;

                  (ii) A duly executed Escrow Agreement, Registration Rights
Agreement and such other agreements to be executed and delivered at the Closing
as contemplated by this Agreement;

                  (iii) A certificate duly executed by a duly-authorized officer
of Seller stating that the conditions set forth in Sections 10.1(a) and 10.1(d)
are satisfied;

                  (iv) The Legal Opinion; and

                  (v) Such other documents, instruments and certificates as
Buyer may reasonably request in connection with the transactions contemplated by
this Agreement.

                  (b) To Escrow Agent:

                  (i) A duly-executed Escrow Agreement;

                  (ii) the Escrow Amount by wire transfer and otherwise in
accordance with the Escrow Agreement; and

                  (iii) A certificate duly executed by a duly-authorized officer
of Buyer stating that the conditions set forth in Sections 10.1(a) and 10.1(d)
are satisfied;

            11.3. Items to be Delivered by Buyer. At the Closing, Buyer shall
deliver the following:

                  (a) To Seller:

                        (i) By wire transfer, the Closing Date Payment Amount in
      immediately available funds as specified in Article 4 hereof;

                                       21
<PAGE>

                        (iii) A duly-executed Flix Agreement, Escrow Agreement,
      Registration Rights Agreement and such other agreements to be executed and
      delivered at the Closing as contemplated by this Agreement;

                  (b) To Escrow Agent, a duly-executed Escrow Agreement.

                                   ARTICLE 12

                        TERMINATION PRIOR TO CLOSING DATE

            12.1. Termination. This Agreement may be terminated at any time
prior to the Closing Date only as follows:

                  (a) By the mutual written consent of Buyer and Seller;

                  (b) By any Party immediately upon written notice to the other
Parties, if the Closing has not occurred on or before May 27, 2005; or

                  (c) By any Party immediately upon written notice to the other
Parties if a permanent injunction is issued by a court of competent jurisdiction
or by any regulatory or governmental body which enjoins or otherwise prohibits
the Closing and becomes final and non-appealable.

            12.2. Effect of Termination. In the event of any termination of this
Agreement pursuant to Section 12.1 hereof, no Party shall have liability or
further obligations to the other Parties under this Agreement; provided,
however, that such termination shall not relieve any Party of liability for any
willful, material breach of this Agreement.

                                   ARTICLE 13

                         INDEMNIFICATION AND PROCEDURES

            13.1. Indemnification by Seller. Subject to the other provisions of
this Article 13, Seller shall indemnify and hold Buyer and any Affiliates of
Buyer and their respective employees, representatives, officers, directors, and
agents ("Buyer Group") harmless from and against any and all Damages suffered by
Buyer or any other member of the Buyer Group resulting from, arising out of, or
incurred with respect to, or (in the case of claims asserted against Buyer or
any other member of the Buyer Group by a third party) alleged to result from,
arise out of or have been incurred with respect to:

                  (a) the inaccuracy or breach of any representation or warranty
made by Seller in this Agreement or in any certificate delivered by it at the
Closing pursuant hereto; and

                                       22
<PAGE>

                  (b) the breach of any covenant by Seller or the nonperformance
of any obligation to be performed by Seller under this Agreement or in any
certificate delivered by it at the Closing pursuant hereto;

                  (c) the failure of Seller fully to pay or satisfy or cause to
be paid or satisfied any of the Retained Liabilities;

                  (d) the failure to comply with applicable bulk sales laws; and

                  (e) any claim against Buyer arising from Seller's use or sale
of the Purchased Assets prior to the Closing

            13.2. Indemnification by Buyer. Subject to the other provisions of
this Article 13, Buyer shall indemnify and hold Seller and its employees,
representatives, officers, directors and agents ("Seller Group") harmless from
and against any Damages suffered by Seller or any other member of the Seller
Group resulting from, arising out of, or incurred with respect to, or (in the
case of claims asserted against Seller or any other member of the Seller Group
by a third party) alleged to result from, arise out of or have been incurred
with respect to:

                  (a) the inaccuracy or breach of any representation or warranty
made by Buyer in this Agreement or in any certificate delivered by it at the
Closing pursuant hereto;

                  (b) the breach of any covenant by Buyer or the nonperformance
of any obligation to be performed by Buyer under this Agreement or in any
certificate delivered by it at the Closing pursuant hereto;

                  (c) the failure of Buyer fully to pay or satisfy any of the
Assumed Liabilities;

                  (d) any claim against Seller arising from Buyer's use or sale
of the Purchased Assets after the Closing; and

                  (e) any claim against Seller arising from Seller's enforcement
of an Employee Non-Compete pursuant to Section 14.4 hereof.

            13.3. Notice and Resolution of Claim.

                  (a) An indemnified party hereunder shall promptly give written
notice to the indemnifying party after obtaining knowledge of (i) any claim the
indemnified party has against the indemnifying party not involving a third party
claim or litigation or (ii) any third party claim or litigation against the
indemnified party as to which recovery may be sought against the indemnifying
party because of the indemnity set forth in Section 13.1 or Section 13.2
specifying in reasonable detail the claim or litigation and the basis for
indemnification; provided, that the failure of the indemnified party promptly to
notify the indemnifying party of any such matter shall not release the
indemnifying party, in whole or in part, from its obligations under this Article
13 except to the extent the indemnified party's failure so to notify actually
materially prejudices the indemnifying party. If such claim for indemnity shall
arise from the claim or litigation of a third party, the indemnified party shall
permit the indemnifying party to assume the defense of any such claim,
litigation or any litigation resulting from such claim.

                                       23
<PAGE>

                  (b) If the indemnifying party assumes the defense of any such
third party claim or litigation, the obligations of the indemnifying party
hereunder shall, subject to the limits of this Article 13, include taking all
steps necessary in the investigation, defense or settlement of such claim or
litigation (including the retention of legal counsel) and holding the
indemnified party harmless from and against any and all Damages caused by or
arising out of any settlement approved by the indemnifying party or any judgment
in connection with such claim or litigation. The indemnifying party shall not,
in the defense of such claim or litigation, consent to entry of any judgment
(except with the written consent of the indemnified party, which consent shall
not be unreasonably withheld), or enter into any settlement (except with the
written consent of the indemnified party, which consent shall not be
unreasonably withheld), (i) which does not include as an unconditional term
thereof the giving by the claimant or the plaintiff to the indemnified party a
complete release from all liability in respect of such claim or litigation or
(ii) the effect of which is to permit any injunction, declaratory judgment,
other order or other non-monetary relief to be entered, directly or indirectly,
against any indemnified party. The indemnifying party shall permit the
indemnified party to participate in such defense or settlement through counsel
chosen by the indemnified party, with the fees and expenses of such counsel
borne by the indemnified party.

                  (c) Failure by the indemnifying party to notify the
indemnified party of its election to assume the defense any such claim or
litigation by a third party within twenty (20) days after notice thereof shall
have been given to the indemnifying party shall be deemed a waiver by the
indemnifying party of its right to assume the defense of such claim or
litigation. If the indemnifying party shall not assume the defense of any such
claim by a third party or litigation resulting therefrom, the indemnified party
may defend against such claim or litigation in such manner as it may deem
appropriate and may settle such claim or litigation on such terms as it may deem
appropriate; provided, however, that the indemnified party shall not, in the
defense of such claim or litigation, consent to entry of any judgment or enter
into any settlement except with the written consent of the indemnified party,
which consent shall not be unreasonably withheld. The indemnifying party shall
not be entitled to require that any action be brought against any other Entity
before action is brought against it hereunder by the indemnified party but shall
be subrogated to any right of action to the extent that it has paid or
successfully defended against any third party claim.

            13.4. Non Third-Party Claims. With respect to any claim not
involving a third party claim or litigation which the indemnifying party fails
to pay within thirty (30) days of the date notice is received from the
indemnified party, the indemnifying party shall, if it is determined to have
been obligated to indemnify the indemnified party for such claim, pay the
indemnified party for any Damages resulting from the indemnifying party's
failure to satisfy promptly such claim.

            13.5. Payment and Assignment of Claims; Rights of Offset.

                                       24
<PAGE>

                  (a) Upon final determination by the Parties or by a court of
competent jurisdiction or by any alternate dispute resolution procedure agreed
upon by the Parties, that a Party is entitled to indemnification under this
Article 13, the indemnifying party shall promptly pay or reimburse, as
appropriate, the indemnified party for any Damages to which the indemnified
party is entitled to be indemnified under this Article 13. Any Damages to which
Buyer is entitled to be indemnified under this Article 13 shall be satisfied by
setting off, offsetting and applying against, in the following order, (i) any
remaining Escrow Amount and (ii) by payment of any remaining Damages from Seller
to Buyer.

                  (b) In the event that any of the Damages for which an
indemnifying party is responsible or allegedly responsible pursuant to Section
13.3 are recoverable or potentially recoverable against any third party at the
time when payment is due hereunder, then the indemnified party shall assign any
and all rights that it may have to recover such Damages to the indemnifying
party.

            13.6. Limits on Indemnification.

                  (a) Indemnification Limitation. Except with respect to payment
of the Purchase Price, the total aggregate liability of Buyer for any claims for
Damages arising under Section 13.1(a) of this Agreement shall not exceed One
Million Dollars ($1,000,000). The total aggregate liability of Seller for any
claims for Damages arising under Section 13.1(a) of this Agreement shall not
exceed One Million Dollars ($1,000,000).

                  (b) Indemnification Threshold. No claim shall be asserted by
any party seeking indemnification pursuant to the provisions of this Article 13,
unless the amount of such party's Damages equals at least Fifteen Thousand
Dollars ($15,000) in the aggregate (the "Indemnity Threshold"); provided,
however, that once the amount of Damages any such party incurs has met or
exceeded the Indemnity Threshold, then it shall be entitled to recover the full
amount of such Damages.

                  (c) Survival. The representations and warranties made in this
Agreement or in any certificate or other agreement or document delivered
pursuant hereto or in connection herewith shall survive the Closing Date for a
period of one year or, in the case of representations and warranties set forth
in Sections 5.1 (Organization; Power and Authority), 5.2 (Due Authorization and
Execution, Effect of Agreement) which shall survive for four (4) years after the
Closing Date, or, in the case of Sections 5.3 (Title to Purchased Assets), and
5.11 (Intellectual Property) for two (2) years after the Closing Date (the
applicable survival period being referred to herein as the "Survival Period").
Neither Party shall have an obligation to indemnify the other pursuant to this
Article 13 for any breach of any representation or warranty unless a notice has
been submitted to the indemnifying party in accordance with Section 13.3(a)
hereof prior to the end of the applicable Survival Period.

                  (d) Sole Remedy. Except as provided in Section 15.1(a), the
remedies provided in this Article 13 shall be an indemnified Party's sole and
exclusive remedy with respect to any claim giving rise to an obligation of
indemnification by the other Party.

                                       25
<PAGE>

            13.7. Indemnity Payments. The Parties agree that any payments by one
Party to the other Party made pursuant to this Article 13 will be treated by the
Parties on all applicable tax returns as an adjustment to the Purchase Price.

                                   ARTICLE 14

                              RESTRICTIVE COVENANT

            14.1. Covenants Not to Compete. For a period of four (4) years after
the Closing Date, Seller shall not, directly or indirectly through or in
association with any Entity or otherwise, (a) market, promote or sell any Flash
video encoder product except for Permitted Activities or otherwise in connection
with the marketing and promotion being performed by Seller for Buyer pursuant to
the Flix Agreement; (b) except in connection with a Change of Control of Seller,
sell or transfer any Flix customer information to any third-party unless such
party agrees to be bound by the foregoing restriction; (c) engage in research
and development related to, or design, develop, manufacture, license, sell or
otherwise distribute or provide any Flash video products except for Permitted
Activities; (d) own or acquire any controlling interest in any business which is
engaged in the business of marketing, promoting, selling developing or designing
any Flash Video encoder products; or (e) act as a consultant or advisor only as
it relates specifically to the marketing, promoting, selling, development or
design of any Flash video encoder products. For purposes of this Agreement,
"Permitted Activities" shall mean, (i) the development and commercialization of
software using Flash Screen Capture Video; (ii) the integration of Flash Video
with the New Products, subject to the restrictions set forth in Section 9.2(d)
hereof; (iii) the marketing, promoting, or sale of the New Products; (iv) the
integration of software licensed from Buyer into any other products for which
Seller obtains a license from Buyer and the marketing, promotion, distribution
and sale of those products; (v) providing support services to any of Seller's
existing customers and licensees for software purchased or licensed from Seller
before the Closing Date and any of the Retained Assets and (vi) providing
services to Buyer under the terms of the Flix Agreement.

            14.2. Obligations Not to Compete as Inducement and Consideration to
Buyer. Seller acknowledges and agrees that the value to Buyer of the
transactions provided for in this Agreement would be substantially and
materially diminished if Seller, directly or indirectly through or in
association with any Entity or otherwise, were hereafter to breach any of the
provisions of Section 14.1, and Seller has therefore offered and agreed to the
provisions of Section 14.1 as a material inducement to Buyer to enter into this
Agreement, and in consideration of the promises, representations and covenants
made by Buyer under this Agreement. Seller specifically acknowledge and agree
that the provisions of Section 14.1 are commercially reasonable restraints on
Seller, ancillary to the investment, effort and risk to acquire and thereafter
commercialize the Purchased Assets and are reasonably necessary to protect the
interests Buyer is acquiring hereunder. Seller further acknowledges and agrees
that Buyer would be irreparably damaged by a breach of Section 14.1 and would
not be adequately compensated by monetary damages for any such breach.
Therefore, in addition to all other remedies, Buyer shall be entitled to seek
injunctive relief from any court having jurisdiction to restrain any violation
(actual or threatened) of Section 14.1 without the necessity of posting any bond
in regard to any injunctive proceeding.

                                       26
<PAGE>

            14.3. Enforceability. If any court shall in any proceeding refuse to
enforce Sections 14.1 and 14.2 in whole or in part because the time limit,
geographical scope or any other element thereof is deemed unreasonable in the
jurisdiction of that court, it is expressly understood and agreed that Sections
14.1 and 14.2 shall not be void but, for the purpose of such proceeding, such
time limit, geographical scope or other element shall be deemed to be reduced to
the extent necessary to permit the enforcement of Sections 14.1 and 14.2 to the
maximum extent allowable in that particular jurisdiction. The foregoing,
however, is not intended to and shall not in any way affect, invalidate or limit
the remaining provisions of Sections 14.1 and 14.2 or affect, invalidate or
limit the validity or enforceability of Sections 14.1 and 14.2 as written in any
other jurisdiction at any time.

                                   ARTICLE 15

                                  MISCELLANEOUS

            15.1. Enforceability.

                  (a) Except as otherwise provided in this Agreement, the
Parties agree that money damages are an inadequate remedy for a violation of
their covenants contained herein and in the other agreements delivered pursuant
hereto, including but not limited to the covenants contained within Article 14,
and that such other Party shall be entitled, in addition to any other rights and
remedies it may have, at law or in equity, to an injunction enjoining and
restraining the breaching Party from doing or continuing to do any such act and
any other violations or threatened violations of any said covenant.

                  (b) If any provision of this Agreement as applied to any Party
or to any circumstance shall be adjudged by a court to be invalid or
unenforceable, the same shall in no way affect any other provision of this
Agreement, the application of such provision in any other circumstances, or the
validity or enforceability of this Agreement. The Parties intend this Agreement
to be enforced as written. If any such provision, or part thereof, however, is
held to be unenforceable because of the duration thereof or the area covered
thereby, the Parties agree that the court making such determination shall have
the power to reduce the duration and/or area of such provision, and/or to delete
specific words or phrases, and in its amended form such provision shall then be
enforceable and shall be enforced. If any provision of this Agreement shall
otherwise finally be determined to be unlawful, then such provision shall be
deemed to be severed from this Agreement and every other provision of this
Agreement shall remain in full force and effect.

            15.2. Successors and Assigns. The terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the Parties hereto; provided, however, that this
Agreement may not be assigned by any Party without the express written consent
of the other Party hereto, except that either Party may assign all or part of
its rights and obligations under this Agreement: (i) to one or more direct or
indirect subsidiaries of such Party, but any such assignment will not relieve
such Party of any of its obligations, or (ii) in connection with a merger, stock
sale, or transfer of substantially all of the assets of a Party ("Change of
Control").

                                       27
<PAGE>

            15.3. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original
and all of which when taken together shall constitute the same instrument.

            15.4. Headings. The headings of the Sections of this Agreement are
inserted for convenience only and shall not be deemed to constitute part of this
Agreement or to affect the construction hereof.

            15.5. Waiver. Any of the terms or conditions of this Agreement may
be waived in writing at any time by the Party, which is entitled to the benefits
thereof. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of such provision at any time in the future or a
waiver of any other provision hereof.

            15.6. Brokers' Fees. Neither Seller on the one hand, nor Buyer on
the other, has taken or will take any action that would cause the other to have
any obligation or liability to any person for a finders' or brokers' fee
relative to the transactions contemplated by this Agreement. Buyer agrees to
indemnify, defend and hold Seller harmless from any Damages arising out of any
claim of any finder or broker retained by Buyer. Seller agrees to indemnify,
defend and hold Buyer harmless from any Damages arising out of any claim of any
finder or broker retained by Seller.

            15.7. Sales and Transfer Taxes. Except with respect to Taxes imposed
on Seller's income, Buyer shall be responsible for and shall pay all Taxes
applicable to the transactions contemplated by this Agreement, including fees to
record deeds, transfers and assignments, which shall not be deducted from or
otherwise offset against any amount payable by Buyer hereunder. Seller and Buyer
shall cooperate in timely making and filing all filings, tax returns, reports
and forms as may be required with respect to any Taxes payable in connection
with the transactions contemplated by this Agreement.

            15.8. No Third-Party Beneficiaries. Nothing in this Agreement shall
create any third-party beneficiary rights in any Entity that is not a Party to
this Agreement.

            15.9. Expenses. Except as otherwise expressly provided for herein or
in any agreement entered into on the date hereof, each Party shall pay all costs
and expenses incurred by it or on its behalf in connection with this Agreement
and the transactions contemplated hereby, including without limitation, fees and
expenses of its own financial consultants, accountants and legal counsel.

                                       28
<PAGE>

            15.10. Notices. Any notice, request, instruction, consent or other
document to be given hereunder by either party hereto to the other party shall
be in writing and delivered personally, by telecopy or sent by registered or
certified mail, postage prepaid, as follows:

            If to Seller:

                  Wildform, Inc.
                  8725 Venice Boulevard
                  Los Angeles, California 90034

                  Attention: Jonathan Blank and Colby Devitt
                  Fax No.: 310.559.2035

            If to Buyer:

                  On2 Technologies, Inc.
                  21 Corporate Drive, Suite 103
                  Clifton Park, NY 12065

                  Attention: General Counsel
                  Fax No.: 646.292.3534

or at such other address for a Party as shall be specified in writing by that
Party. Any notice which is delivered personally or by telecopy to the addresses
provided herein shall be deemed to have been duly given to the Party to whom it
is directed upon actual receipt by such Party (or its agent for notices
hereunder). Any notice that is addressed and mailed in the manner herein
provided shall be deemed given to the Entity to which it is addressed when
received.

            15.11. Bulk Sales Laws. Buyer agrees to waive compliance by Seller
with the requirements of all applicable laws, if any, relating to sales in bulk.
Notwithstanding anything herein to the contrary, including, without limitation,
Section 15.7, Seller agrees to pay and discharge when due, and to indemnify and
hold harmless Buyer from and against, all claims that could be asserted against
Buyer by reason of such non-compliance.

            15.12. Governing Law. This Agreement shall be construed in
accordance with and governed by the laws of the State of New York applicable to
agreements made and to be performed wholly within such jurisdiction.

            15.13. Public Announcements. Prior to the Closing, and except to its
legal counsel, advisers, accountants and its stockholders, as applicable,
neither Party or its affiliates shall make any public disclosure regarding the
subject matter or existence of this Agreement without the prior written consent
of the other Party; provided, however, that Buyer may make such public
disclosure of the negotiation of the Acquisition without the prior written
consent of Seller as, in the opinion of its counsel, is required by law or the
rules and regulations of the American Stock Exchange or federal or state
securities laws.

                                       29
<PAGE>

            15.14. Exclusive Jurisdiction and Consent to Service of Process. The
Parties agree that any legal action, suit or proceeding arising out of or
relating to this Agreement or the transactions contemplated hereby shall be
instituted by a Party in a Federal or state court sitting in the jurisdiction
and venue of the other Party, which shall be the exclusive jurisdiction and
venue of said legal proceedings and each Party hereto waives any objection which
such party may now or hereafter have to the laying of venue of any such action,
suit or proceeding, and irrevocably submits to the jurisdiction of any such
court in any such action, suit or proceeding. Any and all service of process and
any other notice in any such action, suit or proceeding shall be effective
against such Party (or the subsidiary of such Party) when transmitted in
accordance with Section 15.10. Nothing contained herein shall be deemed to
affect the right of any Party hereto to serve process in any manner permitted by
law.

            15.15. Entire Agreement; Amendment. This Agreement including all
Schedules and Exhibits hereto, and the other agreements entered into on the date
hereof constitute the sole understanding of the Parties with respect to the
matters contemplated hereby and thereby and supersede and render null and void
all prior agreements and understandings between the Parties with respect to such
matters. No amendment, modification or alteration of the terms or provisions of
this Agreement including all Schedules and Exhibits hereto, shall be binding
unless the same shall be in writing and duly executed by the Party against whom
such would apply.

                  [Remainder of page intentionally left blank.]

                                       30
<PAGE>

            IN WITNESS WHEREOF, each of the Parties hereto has caused this
Agreement to be executed on its behalf as of the Effective Date.

                                               ON2 TECHNOLOGIES, INC.

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

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

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

                                               WILDFORM, INC.

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

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

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

                                       31Exhibit 10.2

                                                                       EXHIBIT B

                                ESCROW AGREEMENT

      This ESCROW AGREEMENT is dated as of April ___, 2005, by and among
McGuireWoods LLP (the "Escrow Agent"), On2 Technologies, Inc., a Delaware
corporation ("Buyer"), and Wildform, Inc., a California corporation ("Seller").

                               W I T N E S S E T H

      WHEREAS, Buyer and Seller are parties to an Asset Purchase and Software
License Agreement dated as of April, 2005 (the "Purchase Agreement") which
provides for a deposit of $200,000 by Buyer (the "Escrow Amount"), to be held by
the Escrow Agent on the terms and conditions set forth herein;

      WHEREAS, Buyer and Seller each appoint the Escrow Agent to serve as an
escrow agent hereunder; and

      WHEREAS, the Escrow Agent is willing to serve as escrow agent pursuant to
the terms and conditions of this Escrow Agreement.

      NOW, THEREFORE, in consideration of the mutual covenants herein contained
and other good and valuable consideration, the sufficiency and receipt of which
is hereby acknowledged, the parties hereto, intending to be legally bound, agree
as follows:

      1. Definitions. Capitalized terms not otherwise defined herein that are
defined in the Purchase Agreement shall have the meanings given in the Purchase
Agreement, a complete and correct copy of which has been delivered to the Escrow
Agent by Buyer and Seller.

      2. Escrow Amount. The Escrow Agent acknowledges receipt of $200,000
tendered by Buyer in accordance with Section 4.2(b) of the Purchase Agreement.
The Buyer and the Seller hereby appoint the Escrow Agent as the escrow agent
hereunder, and the Escrow Agent hereby accepts said appointment and agrees to
hold the Escrow Amount and all interest and other income earned thereon (the
"Income" and, together with the Escrow Amount, the "Escrow Fund") in escrow and
to apply, invest, reinvest and disburse the Escrow Fund only in accordance with
the provisions of this Escrow Agreement.

      3. Distribution of Escrow Fund; Disputes.

      (a) The Escrow Amount is deposited by Buyer with the Escrow Agent subject
to any claims for Damages the Buyer may have pursuant to Section 13.1 of the
Purchase Agreement.

      (b) Either party (the "Instructing Party ") may deliver signed
instructions to the Escrow Agent (the "Instructions") instructing the Escrow
Agent to release funds from the Escrow Fund, provided that Seller may not
deliver such Instructions to the Escrow Agent prior to the Termination Date (as
hereinafter defined). The Instructing Party shall deliver to the other party
(the "Receiving Party") a copy of the Instructions concurrently with its
delivery to the Escrow Agent. If the Receiving Party objects to the release of
any funds from the Escrow Fund as set forth in the Instructions, it shall
deliver written notice (a "Notice of Dispute") to the Instructing Party and the
Escrow Agent within a period of 20 business days after receipt of the
Instructions setting forth in reasonable detail the reasons why the Receiving
Party is disputing the Instructions. The Receiving Party shall deliver to the
Instructing Party a copy of the Notice of Dispute concurrently with its delivery
to the Escrow Agent. If the Receiving Party fails to deliver a Notice of Dispute
to the Instructing Party and the Escrow Agent within said period of 20 business
days, or if the Notice of Dispute does not dispute the payment of a portion of
the amount set forth in the Instructions (the "Undisputed Portion"), then the
Escrow Agent shall immediately pay to the Instructing Party the amount of the
payment set forth in the Instructions or the Undisputed Portion, as applicable.
If the Escrow Agent receives a Notice of Dispute, the Escrow Agent shall not pay
any amounts which are being disputed unless, until and only to the extent that
the Escrow Agent (i) receives joint written instructions signed by Buyer and
Seller regarding the payment of funds from the Escrow Fund, or (ii) is directed
to make such payment by a court or arbitrator adjudicating such dispute.

<PAGE>

      (c) On the Termination Date, all Income earned on the Escrow Amount, to
the extent not paid to Buyer or subject to a Notice of Dispute in accordance
with subparagraph 3(b), shall be paid to Seller. Any taxes incurred on account
of such Income or as a result thereof shall be the responsibility of, and be
paid by, Seller.

      (d) On the first anniversary of the date hereof (the "Termination Date"),
all amounts in the Escrow Fund, to the extent not paid to Buyer or subject to a
Notice of Dispute in accordance with Section 3(b) above, shall be released by
the Escrow Agent and immediately paid to Seller. Any amounts remaining in the
Escrow Fund that are subject to a Notice of Dispute shall be released in
accordance with Section 3(b) above.

      4. Investment. The Escrow Agent shall deposit the Escrow Fund in its IOLTA
account or other client trust fund. The Escrow Agent shall not be required to
hold the Escrow Fund in an interest bearing account nor will interest be payable
in connection therewith. In the event the Escrow Fund is deposited in an
interest bearing account, Seller shall be entitled to receive any accrued
interest thereon.

      5. Expenses. Except as set forth in this Section 5, Escrow Agent shall be
paid no fee for performance of its duties hereunder. All reasonable costs,
expenses and fees of the Escrow Agent incurred in connection with the
performance of its duties and obligations hereunder, including any outside
counsel fees reasonably incurred by it after prior notice to the parties, shall
be borne by Buyer.

      6. Concerning the Escrow Agent. The Escrow Agent's duties and
responsibilities shall be subject to the following terms and conditions:

      (a) The parties acknowledge and agree that the Escrow Agent (i) shall not
be responsible for or bound by, and shall not be required to inquire into
whether the Buyer is entitled to receipt of the Escrow Fund pursuant to any
Instructions, where Escrow Agent has not received a Notice of Dispute within 20
business days after receipt of the Instructions; (ii) shall be obligated only
for the performance of such duties as are specifically assumed by the Escrow
Agent pursuant to this Escrow Agreement; (iii) may rely on and shall be
protected in acting or refraining from acting upon any written notice,
instruction, instrument, statement, request or document furnished to it
hereunder and believed by the Escrow Agent in good faith to be genuine and to
have been signed or presented by the proper person or party, without being
required to determine the authenticity or correctness of any fact stated therein
or the propriety or validity or the service thereof; (iv) may assume that any
person believed by the Escrow Agent in good faith to be authorized to give
notice or make any statement or execute any document in connection with the
provisions hereof is so authorized; (v) shall not be under any duty to give the
property held by Escrow Agent hereunder any greater degree of care than Escrow
Agent gives its own similar property, but in no event less than a reasonable
amount of care; and (vi) may consult counsel satisfactory to Escrow Agent, the
opinion of such counsel to be full and complete authorization and protection in
respect of any action taken, suffered or omitted by Escrow Agent hereunder in
good faith and in accordance with the opinion of such counsel.

      (b) The parties acknowledges that the Escrow Agent is acting solely as a
stakeholder at their request and that the Escrow Agent shall not be liable for
any action taken by Escrow Agent in good faith and believed by Escrow Agent to
be authorized or within the rights or powers conferred upon Escrow Agent by this
Escrow Agreement. Buyer agrees to indemnify and hold harmless the Escrow Agent
and any of Escrow Agent's partners, employees, agents and representatives for
any action taken or omitted to be taken by Escrow Agent or any of them
hereunder, including the fees of outside counsel and other costs and expenses of
defending itself against any claim or liability under this Escrow Agreement,
except in the case of gross negligence or willful misconduct on Escrow Agent's
part committed in its capacity as Escrow Agent under this Escrow Agreement.

<PAGE>

      (c) The Escrow Agent may at any time resign as Escrow Agent hereunder by
giving five (5) days prior written notice of resignation to Buyer and Seller.
Prior to the effective date of the resignation as specified in such notice, the
parties will issue to the Escrow Agent a Joint Instruction authorizing delivery
of the Escrow Fund to a substitute Escrow Agent jointly selected by the parties.
If no successor Escrow Agent is named by the parties, the Escrow Agent may apply
to a court of competent jurisdiction in the State of New York for appointment of
a successor Escrow Agent, and to deposit the Escrow Fund with the clerk of any
such court.

      (d) The Escrow Agent does not have and will not have any interest in the
Escrow Fund, but is serving only as escrow agent, having only possession
thereof.

      (e) This Escrow Agreement sets forth exclusively the duties of the Escrow
Agent with respect to any and all matters pertinent thereto and no implied
duties or obligations shall be read into this Escrow Agreement.

      (f) The provisions of this Section 6 shall survive the resignation of the
Escrow Agent or the termination of this Escrow Agreement.

      7. Option to Interplead. If any two parties to this Escrow Agreement shall
be in disagreement over the interpretation of this Escrow Agreement, or over
their respective rights and obligations, or if any other dispute shall arise
hereunder, or if the Escrow Agent otherwise has any doubts as to the proper
disposition of the funds or the execution of any of its duties hereunder, the
Escrow Agent may, at its sole discretion, file an action in interpleader to
resolve such disagreement in any New York State or Federal court sitting in the
Borough of Manhattan. The Escrow Agent shall be indemnified by Buyer for all
costs, including reasonable attorney's fees and expenses, and shall be fully
protected in suspending all or part of its activities under this Escrow
Agreement until a final judgment in the interpleader action is resolved.

      8. Termination of Escrow Agreement. This Escrow Agreement shall terminate
when the entire Escrow Fund shall have been disbursed as provided in Section 3
herein.

      9. Notices. All notices and other communications required or permitted
under this Escrow Agreement shall be in writing and shall be deemed to have been
duly given, made and received only when delivered (personally, by courier
service such as Federal Express, or by other messenger), when sent by electronic
facsimile or four days following the day when deposited in the United States
mail, registered or certified air mail, postage prepaid, return receipt
requested, addressed as set forth below:

      (i) If to the Escrow Agent:

      McGuireWoods, LLP
      50 North Laura Street, Suite 3300
      Jacksonville, FL 32202
      Attention: Louis Zehil, Esq.
      Fax: (904) 798-32685

<PAGE>

      (ii) If to Buyer:

      On2 Technologies, Inc.
      21 Corporate Drive, Suite 103
      Clifton Park, New York  12045
      Attention: Legal Department
      Fax No. 603.805.4669

      (iii) If to Seller:

      Wildform, Inc.
      8725 Venice Boulevard
      Los Angeles, California 90034
      Attention: Jonathan Blank and Colby Devitt
      Fax No.: 310.559.2035

      Any party may alter the address to which communications or copies are to
be sent by giving notice of such change of address in conformity with the
provisions of this Section for the giving of notice.

      10. Successors and Assigns. This Escrow Agreement shall be binding upon
inure to the benefit of the parties hereto and their respective successors and
permitted assigns, but in no event shall any person not a party hereto have any
rights to the monies or investments in the Escrow Fund as a third party
beneficiary or otherwise. No party hereto may assign or transfer its rights or
obligations hereunder without the prior written consent of the other parties
hereto, provided, however, that Seller may assign its rights and obligations
hereunder to its stockholders upon the liquidation and dissolution of the
Company, or in contemplation thereof, without the prior written consent of
Buyer.

      11. Governing Law. This Escrow Agreement and all questions relating to its
validity, interpretation, performance and enforcement shall be governed by the
laws of the State of New York, without regard to its conflicts of law doctrine.

      12. Waiver. Waiver of any term or condition of this Escrow Agreement by
any party shall not be construed as a waiver of a subsequent breach or failure
of the same term or condition, or waiver of any other term or condition of this
Escrow Agreement.

      13. Headings. The section headings contained in this Escrow Agreement are
convenient references only and shall not in any way affect the meaning or
interpretation of this Escrow Agreement.

      14. Counterparts. This Escrow Agreement may be executed in one or more
counterparts (including by facsimile), each of which shall be deemed to be an
original as against any party whose signature appears thereon, and all of which
taken together shall constitute one and the same instrument. This Escrow
Agreement shall become binding when one or more counterparts hereof,
individually or taken together, shall bear the signatures of all of the parties
reflected hereon as the signatories.

      15. Entire Agreement. This Escrow Agreement, embody the entire
understanding of the parties hereto which pertain to the subject matter hereof
and supersede all prior or contemporaneous agreements, representations,
conditions or undertakings not included herein and therein which pertain to the
subject matter hereof. This Escrow Agreement may be amended only in writing,
signed by all parties hereto, and no purported oral waiver or amendment of any
provision hereof shall be effective.

<PAGE>

      IN WITNESS WHEREOF, the parties have caused this Escrow Agreement to be
executed on the date first above written.

                                                  ON2 TECHNOLOGIES, INC.

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

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

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

                                                  WILDFORM, INC.

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

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

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

                                                  McGUIREWOODS LLP

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

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

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

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