Document:

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                                                                    Exhibit 10.5

                             SUBORDINATION AGREEMENT

               This SUBORDINATION AGREEMENT ("Agreement"), is made as of August
14, 2002, by the undersigned (the "Subordinated Lender") in favor of the lender
that is a signatory hereto (the "Senior Lender").

                                    RECITALS

               A.  The Senior Lender and Peregrine/Bridge Transfer Corporation
(the "Maker") have entered into two promissory notes (the "Notes") and a related
security agreement (the "Security Agreement"), each of which is dated the date
hereof.

               B.  As a condition precedent to the Notes, the Subordinated
Lender must enter into this agreement and subordinate its outstanding loans to
the Maker to the debt owed to the Senior Lender by the Maker under the Notes.

                                    AGREEMENT

               NOW THEREFORE, in consideration of the premises and as an
inducement to the Senior Lender to grant financial accommodations to the Maker,
and in consideration of the granting thereof, the parties hereby agree as
follows:

               1.  (a)  As used in this Agreement, the following terms have the
 following respective meanings:

               "Affiliate" shall mean, with respect to any Person, any other
Person directly or indirectly controlling, controlled by, or under direct or
indirect common control with, such Person. A Person shall be deemed to control
another Person if the controlling Person possesses, directly or indirectly, the
power to direct or cause the direction of the management or policies of the
controlled Person, whether through ownership of voting stock, by contract or
otherwise.

               "Senior Debt" means all obligations of the Maker to the Senior
Lender arising under the Notes, as amended, modified or supplemented from time
to time, whether now existing or hereafter arising, whether for principal,
interest, fees, expenses or otherwise, together with all renewals, extensions or
rearrangements thereof.

               "Subordinated Debt" means all obligations of the Maker to the
Subordinated Lender, direct or indirect, absolute or contingent, due or to
become due, now existing or hereafter arising.

               "Notes" means that certain promissory note between Senior Lender
and Maker in the aggregate principal amount of $3,584,028 dated of even date
herewith and that certain convertible promissory note between Senior Lender and
Maker in the aggregate principal amount of $3,000,000 dated of even date
herewith.

               (b) Any capitalized term used herein and not defined herein shall
have the meaning attributed to such term in the Security Agreement.

               2.   Until all Senior Debt shall have been indefeasibly paid in
full:

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               (a)  The Subordinated Lender acknowledges and agrees that,
notwithstanding anything to the contrary in any instrument governing the
Subordinated Debt, the Subordinated Debt is subordinated, to the extent and in
the manner set forth herein, to the Senior Debt.

               (b)  The Subordinated Lender shall not receive (and if
involuntarily received, shall hold in trust for the holders of Senior Debt and
promptly pay over to the Senior Lender) any payment from the Maker on account of
the Subordinated Debt (directly or indirectly, by way of setoff or otherwise),
or any collateral in respect thereof, provided that the Subordinated Lender may
receive payments of interest on account of the Subordinated Debt in accordance
with the terms of the relevant governing agreement, if, and to the extent that,
amounts are available; and

               (c)  The Subordinated Lender shall not otherwise take any action
prejudicial to or inconsistent with the Senior Lender's priority position over
the Subordinated Lender created by this Agreement.

               3.   Each instrument evidencing Subordinated Debt shall bear a
legend providing that payment of fees, principal and interest thereon has been
subordinated to prior payment of the Senior Debt in the manner and to the extent
set forth in this Agreement, and a copy of this Agreement shall be attached to
each such instrument.

               4.   (a)    So long as any of the Senior Debt shall not have been
indefeasibly paid in full, the Subordinated Lender shall not commence, or join
with or assist any other creditor or creditors of the Maker in commencing, or
permit any Person that it directly or indirectly controls to commence or join
with or assist any other Person in commencing, any bankruptcy, reorganization or
insolvency proceedings against the Maker. At any general meeting of creditors of
the Maker or in the event of any proceeding, voluntary or involuntary, for the
distribution, division or application of all or part of the assets of the Maker
or the proceeds thereof, whether such proceeding be for the liquidation,
dissolution or winding up of the Maker or its business, receivership, insolvency
or bankruptcy proceeding, an assignment for the benefit or creditors or
proceeding by or against the Maker for position or extension or otherwise, if
all Senior Debt has not been indefeasibly paid in full at the time, the Senior
Lender is hereby irrevocably authorized at any such meeting or in any such
proceeding:

                    (i)    To enforce claims comprising Subordinated Debt in the
name of the Subordinated Lender, by proof of debt, proof of claim, suit or
otherwise;

                    (ii)   To collect any assets of the Maker distributed,
divided or applied by way of dividend or payment, or securities issued, on
account of Subordinated Debt and apply the same, or the proceeds of any
realization upon the same that the Senior Lender in its discretion elects to
effect, to Senior Debt until all Senior Debt shall have been paid in full in
accordance with the terms of the Notes (the Senior Lender hereby agreeing to
render any surplus to the Subordinated Lender and/or other subordinated
creditors, as their interests appear, or to interplead such surplus with a court
of competent jurisdiction);

                    (iii)  To vote claims comprising Subordinated Debt to accept
or reject any plan of partial or complete liquidation, reorganization,
arrangement, composition or extension; and

                    (iv)   To take generally any action in connection with any
such meeting or proceeding that the Subordinated Lender might otherwise take.

               (b)  After the commencement of any such bankruptcy, insolvency or
reorganization proceeding, the Subordinated Lender may inquire in writing
whether the Senior Lender intends to

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exercise the foregoing rights with respect to the Subordinated Debt. Should the
Senior Lender fail, within a reasonable time after receipt of such inquiry,
either to file a proof of claim with respect to the Subordinated Debt and to
furnish a copy thereof to the Subordinated Lender, or to inform the Subordinated
Lender in writing that the Senior Lender intends to exercise its rights to
assert the Subordinated Debt in the manner hereinabove provided, the
Subordinated Lender may, but shall not be required to, proceed to file a proof
of claim with respect to the Subordinated Debt and take such further steps with
respect thereto, not inconsistent with this Agreement, as the Subordinated
Lender may deem proper.

               5.   Should any payment on account of, or any collateral for any
part of, the Subordinated Debt be received by the Subordinated Lender or an
Affiliate of the Subordinated Lender in violation of this Agreement, such
payment or collateral shall be delivered forthwith to the Senior Lender by the
Subordinated Lender or such Affiliate for application to the Senior Debt. The
Senior Lender is irrevocably authorized to supply any required endorsement or
assignment that may have been omitted. Until so delivered, any such payment or
collateral shall be held by the Subordinated Lender or such Affiliate in trust
for the Senior Lenders and shall not be commingled with other funds or property
of the Subordinated Lender or such Affiliate.

               6.   The Subordinated Lender represents and warrants that it is
the lawful owner of the Subordinated Debt and no part thereof has been assigned
to or subordinated or subjected to any other security interest in favor of
anyone other than the Senior Lender. The Subordinated Lender may not assign all
or any portion of the Subordinated Debt without the prior written consent of the
Senior Lender and only upon the execution and delivery to the Senior Lender of
an agreement by any such assignee to be bound by the terms of this Agreement
(including provisions relating to assignment), in form and substance reasonably
satisfactory to the Senior Lender.

               7.   The Senior Lender is hereby authorized to demand specific
performance of this Agreement at any time when the Subordinated Lender shall
have failed to comply with any provision hereof. The Subordinated Lender hereby
irrevocably waives any defense based on the adequacy of a remedy at law that
might be asserted as a bar to the remedy of specific performance hereof in any
action brought therefor by the Senior Lender. The Subordinated Lender further
waives presentment, notice and protest in connection with all negotiable
instruments evidencing Senior Debt or Subordinated Debt to which the
Subordinated Lender may be a party, notice of the acceptance of this Agreement
by the Senior Lender, notice of any loan made, extension granted or other action
taken in reliance hereon, and all demands and notices of every kind in
connection with this Agreement, Senior Debt or time of payment of Senior Debt or
Subordinated Debt, hereby assents to any renewal, extension or postponement of
the time of payment of Senior Debt or any other indulgence with respect thereto,
to any increase in the amount of the Senior Debt, to any substitution, exchange
or release of collateral therefor and to the addition or release of any person
primarily or secondarily liable thereon, and assents to the provisions of any
instrument, security or other writing evidencing Senior Debt, and any amendment
or modification to the documentation evidencing or executed and delivered in
connection with the Senior Debt.

               8.   The Subordinated Lender shall not amend or modify the
relevant governing agreements or any other documentation delivered in connection
with or related to the Subordinated Debt if such amendment or modification would
have, or could reasonably be expected to have, an adverse effect on the Senior
Lender or other obligations arising under the Senior Debt. Without the prior
written consent of the Subordinated Lender, the Senior Debt shall not include,
and the Notes and the other documentation delivered in connection therewith
shall not be amended, modified or supplemented to cause, any increase after the
date hereof in the principal amount of the loans issued pursuant to the Notes or
any interest or fees to be payable on or in connection with (i) any increase in
the principal amount of

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such Notes or (ii) any amendment, modification or supplement of the Notes which
increases the interest rate or fees payable in respect of such Notes.

               9.   The Subordinated Lender shall execute and deliver to the
Senior Lender such further instruments and shall take such further action as may
be necessary or as the Senior Lender may at any time or times reasonably request
in order to carry out the provisions and intent of this Agreement.

               10.  The rights granted to the Senior Lender hereunder are solely
for their protection and nothing herein contained shall impose on the Senior
Lender any duties with respect to any property of the Maker or the Subordinated
Lender received hereunder. The Senior Lender shall have no duty to preserve
rights against prior parties in any property of any kind received hereunder.

               11.  Nothing contained in this Agreement is intended to or shall
impair, as between the Maker, its creditors other than the Senior Lender and the
Subordinated Lender, the obligation of the Maker to pay to the Subordinated
Lender the fees, principal of and the interest on the Subordinated Debt as and
when the same shall become due and payable in accordance with its terms, or to
affect the relative rights of the Subordinated Lender and creditors of the Maker
other than the Senior Lender. It is intended that there be no third party
beneficiaries of this Agreement, including, without limitation, the Maker.

               12.  No failure or delay by the Senior Lender in exercising any
right, power or privilege hereunder or under the Notes or the Security Agreement
shall operate as a waiver of any provision hereof, nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or
exercise of any other right, power or privilege. The rights and remedies herein
provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

               13.  The obligations of the Subordinated Lender under this
Agreement shall continue to be effective, or be reinstated, as the case may be,
if at any time any payment in respect of any Senior Debt, or any other payment
to any holder of any Senior Debt in its capacity as such, is rescinded or must
otherwise be restored or returned by the holder of such Senior Debt upon the
occurrence of any bankruptcy proceeding, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, the Maker or any substantial part of its property, or otherwise,
all as though such payment had not been made.

               14.  This Agreement shall remain in full force and effect as
between the Subordinated Lender and the Senior Lender notwithstanding the
occurrence of any bankruptcy proceeding affecting the Maker.

               15.  Any provision of this Agreement may be amended or waived
only by written instrument signed by the Senior Lender and the Subordinated
Lender.

               16.  This Agreement may be executed in any number of
counterparts, but all such counterparts shall together constitute but one
agreement. In making proof of this Agreement, it shall not be necessary to
produce or account for more than one counterpart signed by each of the parties
hereto.

               17.  This Agreement shall be binding upon the Senior Lender, the
Subordinated Lender, and their respective successors and assigns, and shall
inure to the benefit of the Senior Lender, the Subordinated Lender and their
respective successors and assigns. This Agreement shall be governed by the laws
of the State of Texas without giving effect to any conflicts of law provisions
that might cause this Agreement to be governed by or construed or enforced in
accordance with the laws of any other jurisdiction.

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               18.  EACH OF THE SUBORDINATED CREDITOR AND THE SENIOR CREDITOR
HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO
A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF,
UNDER OR IN CONNECTION WITH, THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE PARTIES
HERETO. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE SENIOR CREDITOR TO ENTER
INTO THIS AGREEMENT.

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

                                 SKUNKWARE, INC., as Subordinated Lender

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 Date:

                                 NEON SYSTEMS, INC., as Senior Lender

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 Date:__________________________________________

                                        6<PAGE>

                                                                    Exhibit 10.6

                           TRADEMARK LICENSE AGREEMENT

     THIS TRADEMARK LICENSE AGREEMENT, including all Exhibits hereto (this
"Agreement"), is entered into and effective the 1st day of August 2002 (the
"Effective Date"), by and between NEON Systems, Inc. ("Licensor"), and
Peregrine/Bridge Transfer Corporation ("Licensee").

     WHEREAS, Licensor has certain rights in and to the marks listed on Exhibit
A hereto (such marks, singularly and collectively, are referred to as the
"Marks"); and

     WHEREAS, Licensee desires to obtain a nonexclusive, paid-up license to use
the Marks solely in connection with the goods and services identified on Exhibit
B hereto (the "Licensed Items") and in its proposed name-change to "Neon
Enterprise Software, Inc.," and Licensor is willing to permit such use by
Licensee subject to the terms of this Agreement.

     NOW, THEREFORE, in consideration of the mutual agreements and promises
expressed in this Agreement, and other good and valuable consideration, the
receipt, sufficiency and adequacy of which are hereby acknowledged, the parties
have agreed as follows:

     1. License Grant. Subject to the terms and conditions of this Agreement,
Licensor grants Licensee, who hereby accepts, a worldwide, royalty-free,
nonexclusive and nontransferable right and license to use the Marks solely in
connection with the Licensed Items set forth in Exhibit B. Except for such
license, all other rights are hereby reserved to Licensor. Licensee shall not
advertise, promote, sell, provide, lease, transfer, or otherwise distribute any
goods or services bearing the Marks (or in connection with which any of the
Marks is used) except Licensed Items.

     2. Use of the Marks. All uses of and references to the Marks by Licensee
shall conform with such instructions therefor as Licensor from time to time may
provide Licensee. Licensee shall place the following notice (or such other
notice as Licensor may reasonably request) in a prominent place on each of the
Licensed Items and, if the Licensed Items include services, on each copy of any
promotional or advertising materials or media which contain, embody, or mention
the Marks:

     (TM)/(R) NEON Systems, Inc.

As to those Marks which have been registered in the U.S.A., Licensee shall use
the "(R)" symbol. Otherwise, Licensee shall use the symbol "(TM)".

     3. Ownership. (a) Subject to Section 3(b), the Marks, and all rights
relating thereto, shall remain the sole and exclusive property of Licensor. All
uses of the Marks shall inure solely to the benefit of Licensor. Nothing in this
Agreement or otherwise shall give Licensee or others any right, title, or
interest whatsoever in and to the Marks other than the rights expressly granted

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hereunder. Licensee agrees that it shall not attack or dispute Licensor's title
or rights in and to the Marks or the validity thereof. Licensee shall not
register any of the Marks in its own name. (b) If Licensor chooses to entirely
discontinue the use of the Marks for any goods or services, Licensor shall
promptly notify Licensee of such decision. Licensee may acquire all of
Licensor's rights and title in the Marks by sending written notice of Licensee's
decision to that effect to Licensor within thirty (30) days from Licensee's
receipt of notice of Licensor's decision of such discontinuation. Upon receipt
of such notice from Licensee, Licensor shall thereafter execute such lawful
instruments as are needed to convey Licensor's rights and title in the Marks to
Licensor. No payment of fees to Licensor by Licensee shall be required for such
transfer. If Licensee fails to provide timely written notice to Licensor to
acquire the Marks, then Licensor's obligations under this Section 3(b) shall be
forever discharged.

     4. Use by Others. Licensor, and its other licensees, shall have the right
to use the Marks simultaneously with the use of the Marks by Licensee. Licensor
does not warrant or represent that Licensee will have the sole and exclusive
right to use the Marks. Licensor is not obliged to indemnify or reimburse
Licensee for any expenses by Licensee in connection with Licensee's use of the
Marks.

     5. Modifications. Licensee recognizes and agrees that from time to time,
Licensor may change or modify the Marks. Licensee agrees that it shall accept
and promptly use such changes and modifications as if they were a part of this
Agreement at the time of the execution hereof, and to make any and all
expenditures that such charges or modifications may require. Licensee shall not
modify or alter the Marks and shall not use the Marks in connection or
combination with any other trademark or service mark without the prior written
approval of Licensor. Licensee may not use the Marks on any new products, goods,
promotional materials, or any other items without first submitting two (2)
actual specimens of same to Licensor and obtaining Licensor's prior written
consent to such proposed usage. Licensee shall not use, form or participate in
the formation or operation of any firm or company which incorporates or
embodies, any of the Marks or Licensor's name, and Licensee shall not allow
others to use the Marks or Licensor's name. Notwithstanding the foregoing,
Licensee may use the Mark "NEON" in its corporate name, currently anticipated to
be changed to "Neon Enterprise Software, Inc." provided that Licensee shall
indemnify Licensor against any third party claims arising out of or related to
Licensee's use of the Marks in their corporate name and marketing identity.

     6. Quality Control. All uses of the Marks (including without limitation all
promotional, advertising, and packaging materials used in connection with the
Licensed Items) by Licensee shall be in accordance with the standards of quality
therefor as set by Licensor, and as amended by Licensor from time to time.
Without limiting the foregoing, the quality of the Licensed Items, as well as
the quality of all promotional and advertising materials using the Marks, shall
meet or exceed the quality of the corresponding goods, services, and promotional
and advertising materials of Licensor prior to the Effective Date. Licensee
shall cooperate with Licensor in facilitating Licensor's control of the nature
and quality of the Licensed Items, and all promotional, advertising, and
packaging materials therefor, and to permit the reasonable inspection of
Licensee's operations, and to supply Licensor with specimens of use of the Marks
promptly upon Licensor's request therefor. Licensee shall sell only those
Licensed Items which

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have been previously authorized by Licensor and which meet or exceed Licensor's
quality standards.

     7. Protection of the Marks. Licensee shall cooperate with Licensor in
connection with efforts to protect the Marks, including without limitation
efforts to obtain registrations and/or prevent any infringements. Licensee shall
promptly comply with Licensor's reasonable requests for information, specimens
of usage, and the like, and shall promptly execute such lawful instruments as
Licensor may reasonably request. In the event of any actual or suspected
infringement or piracy of any aspect of the Marks, Licensee shall immediately
report the same to Licensor in writing. Licensor shall have the sole and
exclusive right to institute any claim, demand, or cause of action with respect
to any such suspected or actual infringement or piracy. Licensor shall have no
obligation or duty, however, to institute any such claim, demand, or cause of
action. Licensee shall furnish Licensor full cooperation in connection with any
such claim, demand, or cause of action. Licensee shall furnish Licensor full
cooperation in connection with any such claim, demand or cause of action,
including, if requested by Licensor, joining as a party to any such cause of
action.

     8. Independent Contractor Relationship. Licensee certifies that it is an
independent contractor and not the agent or legal representative of Licensor and
that any representation made or agreement executed by Licensee shall be
Licensee`s sole responsibility. Licensee shall conduct its business for the
promotion, purchase, sale and resale of Licensed Items as a principal solely for
its own account and at its own expense and risk. Licensee shall be solely
responsible for all commitments incurred or assumed by it during the term of
this Agreement or thereafter, and Licensor shall not be held responsible in any
manner therefor, irrespective of any suggestion or recommendation with respect
thereto by Licensor or its employees or representatives. Licensee represents
that it will not act or represent itself directly or by implication as an agent
for Licensor and will not attempt to create any obligation, or make any
representation, on behalf of or in the name of Licensor. Licensee further shall
not have authority to and shall not appoint any licensee, associate licensee or
sublicensee of the Marks without the prior written approval of an authorized
officer of Licensor. All financial and other obligations associated with
Licensee's business are and will remain the sole responsibility of Licensee.
Because Licensor and Licensee are independent contractors, nothing contained in
this Agreement shall be construed to (i) give either party the power to direct
or control the activities of the other; (ii) constitute the parties as principal
and agent, partners, joint venturers, or co-owners or otherwise as participants
in a joint undertaking; or (iii) allow Licensee to create or assume any
obligation on behalf of Licensor for any purpose whatsoever. THIS IS NOT A
FRANCHISE (OR BUSINESS OPPORTUNITY) RELATIONSHIP.

     9. Protection of Goodwill. Licensee at all times shall use its best efforts
to act and operate in a manner consistent with good business ethics, and in a
manner that will reflect favorably on the Licensed Items and on the goodwill and
reputation of Licensor and the Marks. Licensee's best efforts shall include at a
bare minimum, but are not limited to, the prompt performance of all of its
obligations under this Agreement. Licensee at all times shall refrain from
engaging in any illegal, unethical, unfair or deceptive practices, whether with
respect to the Licensed Items or otherwise. Licensor may immediately terminate
this Agreement if Licensee

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does anything which in Licensor's opinion may tarnish or diminish the goodwill
associated with the Marks and/or the goodwill or reputation of Licensor.

     10. Taxes. Licensee shall pay all license fees, sales, use, occupation,
personal property, transportation and excise taxes and any other fees,
assessments or taxes which may be assessed or levied by any national, state or
local government and any departments and subdivisions thereof, on or against any
of the Licensed Items or in connection with this Agreement and/or Licensee's
business. Licensee is free to determine its own resale prices for Licensed
Items.

     11. Disclaimers; Limits of Liability. LICENSOR MAKES NO WARRANTIES, EXPRESS
OR IMPLIED, AND EXPRESSLY EXCLUDES AND DISCLAIMS ALL WARRANTIES, EXPRESS OR
IMPLIED, THAT MIGHT OTHERWISE ARISE INCLUDING THE IMPLIED WARRANTIES OF (1)
MERCHANTABILITY; AND (2) FITNESS FOR A PARTICULAR PURPOSE; AND (3) THAT THE
LICENSED ITEMS AND/OR LICENSEE'S USE OF THE MARKS ARE FREE FROM INFRINGEMENT OF
PATENTS, COPYRIGHTS, TRADEMARKS, OR PROPRIETARY RIGHTS OF THIRD PARTIES. NO
REPRESENTATIONS OR WARRANTIES HAVE BEEN MADE TO LICENSEE AS TO ITS EARNINGS,
SUCCESS, REVENUES, PROFITS OR LOSSES PURSUANT TO THIS AGREEMENT AND LICENSOR
HEREBY EXPRESSLY DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED,
AS TO ANY EARNINGS, SUCCESS, REVENUES, PROFIT, LOSS, OR FAILURE OF LICENSEE
HEREUNDER. LICENSOR'S ENTIRE LIABILITY AND LICENSEE'S SOLE AND EXCLUSIVE REMEDY
FOR DAMAGES FROM ANY CAUSE WHATSOEVER, WHETHER SOUNDING IN CONTRACT, TORT, UNDER
STATUTE, OR OTHERWISE (INCLUDING WITHOUT LIMITATION ANY NONPERFORMANCE OR
MISREPRESENTATION) SHALL BE LIMITED TO THE AGGREGATE SUM OF U.S. $10,000. IN NO
EVENT WILL LICENSOR BE LIABLE FOR (i) ANY DAMAGES CAUSED, IN WHOLE OR PART, BY
LICENSEE, OR FOR (ii) ANY LOST REVENUES, LOST PROFITS, LOST SAVINGS OR OTHER
INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES INCURRED BY ANY PERSON
EVEN IF LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR CLAIMS.

     12. Term and Termination. This Agreement shall remain in full force and
effect unless and until terminated as provided for herein. Either party may
terminate this Agreement in the event of a material breach by the other upon
fifteen (15) days prior written notice thereof to the other, with the license to
automatically terminate at the end of such fifteen (15) days.

     13. Post-Terminations Rights/Duties. Upon termination of this Agreement,
Licensee shall promptly cease all use of the Marks and shall not thereafter
adopt or use in any manner any name, trademark, service mark, logo, device, or
the like which is or may be confusingly similar to the Marks. Licensor shall
have no responsibility to purchase from Licensee any Licensed Items remaining in
Licensee's inventory at the date this Agreement is terminated and shall have no
liability to Licensee for such inventory. Upon the termination hereof, Licensee
shall destroy or sell to Licensor at Licensor's option all materials in
Licensee's possession, custody, or control

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which bear the Marks. Neither Licensor nor Licensee shall by reason of the
termination or non-renewal of this Agreement be liable to the other for
compensation, reimbursement or damages on account of the loss of prospective
profits, or anticipated sales or on account of expenditures, investments,
leases, property improvements or commitments. Upon termination of this
Agreement, Licensee shall thereafter refrain from operating or doing business
under any name or in any manner that might tend to give the general public the
impression that the license granted pursuant to this Agreement is still in force
or that Licensee is in any way connected or affiliated with or sponsored by
Licensor. The provisions of Sections 3, 10, 11, 13, 14, 15, and 20 shall survive
the termination or expiration of this Agreement.

     14. Indemnity. Licensee shall be solely responsible for and shall defend,
indemnify, and hold Licensor harmless from and against any and all claims or
causes of action whatsoever, and any and all liabilities and every loss, cost,
and expense, including the cost of investigating the claim and reasonable
attorneys' fees incurred by Licensor, brought by Licensee's employees, agents,
subcontractors, sublicensees, and representatives, or any other third party,
caused by, arising out of, or relating to the exercise or practice of the rights
granted hereunder by Licensor to Licensee. This contractual obligation of
indemnification shall extend to and cover the manufacture, use, sale, lease,
rental or other providing or marketing of any Licensed Items and any other goods
or services in connection with which Licensee has used the Marks. This
contractual obligation of defense and indemnification shall extend in favor of
the officers, employees, agents, and representatives of Licensor. This
contractual obligation of defense and indemnification shall include claims,
demands, or causes of action on account of any death or bodily injury to person
or injury to property or economic loss. THIS CONTRACTUAL OBLIGATION OF DEFENSE
AND INDEMNIFICATION SHALL INCLUDE CLAIMS, DEMANDS, OR CAUSES OF ACTION ALLEGING
SOLE OR CONCURRENT NEGLIGENCE OR OTHER FAULT ON THE PART OF LICENSOR. If a court
of competent jurisdiction enters a final judgment that Licensor is partially
negligent with respect to a third party claim, then Licensee's indemnification
obligations shall be reduced on a proportionate basis by Licensor's
proportionate share of negligence so adjudicated.

     15. Insurance. Licensee shall obtain and maintain throughout the term of
this Agreement and the applicable statute(s) of limitations, at its own cost and
expense, one or more policies of standard Products Liability Insurance, one or
more policies of standard Advertiser's Liability Insurance, and one or more
policies of standard Comprehensive General Liability insurance. Such policies
shall be obtained from an insurance company authorized to do business in the
State of Texas and shall be in a form acceptable to Licensor. Such policies
shall provide protection against any and all claims, demands, suits, actions,
causes, judgments, and liabilities arising out of any defects in or failure to
perform of any of the Licensed Items. The amount of coverage of each of such
policies shall be a minimum of One Million Dollars ($1,000,000.00) combined
single limit, with no deductible amount, for each single occurrence for bodily
injury, including death, and/or property damage. Licensor shall be named as an
additional insured on such policies. Such policies also shall provide for at
least ten (10) days' written notice to Licensor prior to any modification,
cancellation or termination thereof. Licensee shall furnish Licensor
certificates evidencing such insurance within one (1) week after the execution
of this Agreement. Licensee further agrees to obtain and provide to Licensor
certificates of insurance from each manufacturer of Licensed Items not made by
Licensee evidencing Products Liability

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Insurance coverage for such Licensed Items. In no event shall Licensee make,
offer for sale, advertise, promote, ship, and/or distribute any Licensed Items
prior to Licensor's receipt of the certificates of insurance specified in this
Section.

     16. Amendment; Waiver; Modification. No amendment, modification or waiver
of any provision of this Agreement and no consent to any departure therefrom,
shall be effective unless in writing and signed by duly authorized
representatives of each party. No notice to or demand on Licensee shall entitle
it to any other or further notice or demand in similar or other circumstances.
No failure or delay on the part of Licensor in exercising any right, power or
remedy hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right, power or remedy preclude any other or
further exercise thereof or the exercise of any other right, power or remedy
hereunder.

     17. Assignment. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns,
except that Licensee shall not grant any sublicenses or assign, delegate or
otherwise transfer its rights or obligations hereunder or any interest herein
(including any assignment or transfer occurring by operation of law) without the
prior written consent of Licensor. Notwithstanding the foregoing, Licensee may
assign this agreement in connection with a corporate name-change,
reorganization, reincorporation, recapitalization or other corporate transaction
that does not effect a change in control of the Licensee, without the consent of
the Licensor. Licensor may freely assign or transfer any or all of its rights,
obligations, or interest herein.

     18. Compliance with Laws. Licensee shall, at all times hereunder, comply
with any and all applicable laws, including without limitation all applicable
export and import laws and regulations. Licensee shall not export any Licensed
Items outside the United States without first obtaining or procuring any
necessary governmental license or approval and the prior written approval of an
authorized officer of Licensor as to any such specific area or country.

     19. Notices. All notices and other communications provided for hereunder
shall be in the English language, in writing and mailed, telexed, telegraphed or
telecopied to the applicable party at the address or telecopy number of such
party as may be set forth on the first page hereof or at such other address or
telex or telecopy number as shall be designated by any party in a written notice
to the other party complying as to delivery with the terms of this Section. Each
such notice or other communication shall, when mailed or telexed or telegraphed
or telecopied, be deemed received on the third working day after it has been
deposited in the mails or when delivered to the telegraph company or
mechanically confirmed as to receipt by telex or telecopy. When mailed, any
notice shall be sent by first class certified mail, return receipt requested,
enclosed in a postage prepaid wrapper.

     20. Choice of Law. This Agreement is deemed made and accepted in Houston,
Harris County, Texas, United States of America, and shall be governed by and
construed in accordance with the laws of the State of Texas, excluding therefrom
Texas' conflicts or choice of law rules which lead or may lead to the
application of the substantive law of another jurisdiction. Any disputes or
controversies relating to or arising out of this Agreement, or its performance
or breach, shall be resolved by the state or federal courts sitting in Houston,
Harris County, Texas.

                                      - 6 -

<PAGE>

     21. Reformation; Severability. If any provision of this Agreement is
declared invalid by any tribunal of competent jurisdiction, then such provision
shall be deemed automatically adjusted to conform to the requirements for
validity as declared at such time, and, as so adjusted, shall be deemed a
provision of this Agreement as though originally included herein. In the event
that the provision invalidated is of such nature that it cannot be so adjusted,
the provision shall be deemed deleted from this Agreement as though the
provision had never been included herein. In either case, the remaining
provisions of this Agreement shall remain in effect.

     22. Force Majeure. Licensor shall not be responsible for any delay or
failure in performance hereunder due to fire, flood, or other natural
catastrophe, Act of God, governmental action, war or civil disturbance, strike,
manufacturer's or supplier's nondelivery or any other cause beyond Licensor's
reasonable control, whether similar or dissimilar to any of the foregoing.

     23. Multiple Counterparts. This Agreement may be executed in any number of
copies, each of which when so executed and delivered shall be deemed to be an
original and all of which taken together shall constitute but one and the same
instrument. The organization of this Agreement is for convenience of reference
and shall not constitute a part of the Agreement for any other purpose.

     24. Sole and Entire Agreement. Each of the parties hereto agrees that there
are no other agreements, understandings, or representations, oral or written,
other than as set forth herein, and that this Agreement supersedes and replaces
any and all prior and contemporaneous agreements, understandings,
representations, statements, or other communications, relating to the subject
matter hereof. The parties hereto further agree that this Agreement constitutes
the sole and entire agreement between the parties relating to the subject matter
hereof.

     25. Rules of Construction. As used in this Agreement: (a) the words
"hereof," "herein," and "hereunder" and similar words shall refer to the entire
Agreement and not to any particular provision of this Agreement; and (b) words
defined in the singular shall have a comparable meaning when used in the plural
sense, and vice versa.

                                      - 7 -

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized
representatives of the parties to be effective the day and year first above
written.

Licensor:                                  Licensee:

NEON SYSTEMS, INC.                         PEREGRINE/BRIDGE TRANSFER CORPORATION

By:_______________________________         By:___________________________
Name:_____________________________         Name:_________________________
Title:____________________________         Title:________________________
Date:_____________________________         Date:_________________________

                                      - 8 -

<PAGE>

                         EXHIBIT A TO LICENSE AGREEMENT

The Marks consist of the following:

         Mark                               U.S. Registration/Application No.

NEON 24X7 MISSION CONTROL                            S/N 76/183,006

NEON UNLOAD                                          2,494,023

NEON 24X7                                            2,494,023

NEON                                                 1,376,394

The following product names to the extent they are trademarks of NEON:

1)   NEON 24X7
2)   NEON 24X7 (Full function or Fast Path version only)
3)   NEON iSurvey
4)   Affinities Server
5)   NEON iUnload (ff)
6)   NEON iLoad (ff)
7)   NEON iBuild (ff)
8)   NEON iCheck (ff)
9)   NEON iCopy (ff)
10)  NEON iRecover
11)  NEON iChange
12)  Partitioned Database Facility ("PDF") V3
13)  Partitioned Database Facility ("PDF") V3 Utilities
14)  NEON HS Unload
15)  NEON HS Load
16)  NEON HS Index
17)  Speed Unload (to be withdrawn from support on 4-30-03)
18)  Speed Load (to be withdrawn from support on 4-30-03)
19)  Dynamic Index Utility
20)  Random Max - no longer being licensed
21)  Speed Key - no longer being licensed
22)  NEON iDirect

                                      - 9 -

<PAGE>

                         EXHIBIT B TO LICENSE AGREEMENT

The Licensed Items consist of the following:

Mainframe Software Programs, including PBTC's current or future IMS, CICS and
NEON 24x7 computer software programs, user manuals relating to such programs,
and consulting, training, and maintenance services relating to such programs.

                                     - 10 -

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