Document:

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                                                                   EXHIBIT 10.49

                            ASSETS PURCHASE AGREEMENT

                                     BETWEEN

                              MULTIPLICITY, L.L.C.

                                       AND

                         NETWORK COMPUTING DEVICES, INC.

                                      DATED

                              AS OF JANUARY 7, 2000

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                            ASSETS PURCHASE AGREEMENT

         This ASSETS PURCHASE AGREEMENT (this "Agreement") made as of January 7,
2000, by and between Multiplicity, L.L.C., an Indiana limited liability company,
having an address of 9000 Keystone Crossing, Suite 900, Indianapolis, IN 46 240
(the "Company"), and Network Computing Devices, Inc., a Delaware corporation,
having an address of 350 N. Bernardo Avenue, Mountain View, CA 94043 (the
"NCD").

         WHEREAS, NCD desires to purchase, pay for and acquire from the Company,
and the Company desires to sell, assign and transfer to NCD, substantially all
of the assets and business of the Company, subject to the conditions hereinafter
set forth.

         NOW, THEREFORE, in consideration of the mutual promises hereinafter set
forth, the parties hereto agree as follows:

         1. DEFINITIONS. All capitalized terms used in this Agreement shall have
the meanings assigned to them elsewhere in this Agreement or as specified below:

         "Articles of Organization" shall mean the Company's Articles of
Organization.

         "Change of Control" of NCD shall mean (i) any transaction or series of
transactions pursuant to which any person or entity not currently an affiliate
of NCD acquires all, a majority of, or a controlling block of not less than
forty (40%) percent of the voting securities of NCD; or (ii) the merger or
combination of NCD with any other entity as a consequence of which the
shareholders of NCD prior to such merger or combination own less than half of
the voting securities of the surviving entity; or (iii) the election of a new
Board of Directors, a majority of whose Members are persons who were not
directors of NCD prior to such election.

         "Closing Certificate" shall mean a certificate that (a) the Company
made or has caused to be made such investigations as are reasonably necessary in
order to permit it to verify the accuracy of the information set forth in such
certificate and (b) that such certificate does not misstate any material fact
and does not omit to state any fact necessary to make the certificate not
misleading.

         "Confidential Information" shall mean each party's confidential or
secret processes, inventions, discoveries, improvements, formulae, plans,
materials, devices or ideas or other know-how, whether patentable or not, with
respect to any confidential or secret development or research work or with
respect

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to any other confidential or secret aspects of the business (including, without
limitation, customer lists, supplier lists and pricing arrangements with
customers or suppliers).

         "Contracts Rights" shall mean rights of the Company under sales
agreements, franchises, license agreements, lease agreements, maintenance
agreements, procurement agreements, consultant agreements, employee agreements,
invention agreements and all other agreements of whatever nature or kind
relating to Software or Intellectual Property Rights.

         "Designated Persons" shall mean the former and present Members,
officers and employees of the Company.

         "Intellectual Property Rights" shall mean all intellectual property
rights, including, without limitation, all customer lists, price lists, sales
records, software, processes, inventions, trade secrets, know-how, development
tools and other proprietary rights owned by the Company pertaining to any
product or service manufactured, marketed or sold, or proposed to be
manufactured, marketed or sold (as the case may be), by the Company as of the
closing Date, including, but not limited to, the Software, or used, employed or
exploited in the development, license sale, marketing or distribution or
maintenance thereof, and all documentation and media constituting, describing or
relating to the above, including, without limitation manuals, memoranda,
know-how, records and disclosures, patents, patent applications, patent rights,
trademarks, trademark applications, trade names, service marks, service mark
applications, copyrights, copyright applications, know-how, franchises,
licenses, trade secrets, proprietary processes and formulae.

         "Operating Agreement" shall mean the Company's Operating Agreement
Dated December 30, 1997, as amended to date, a true and complete copy of which
shall have been initialed by the Company and delivered to the Purchaser prior to
the Closing.

         "Person" shall mean and include an individual, a corporation, a
partnership, a trust, an unincorporated organization, a limited liability
company, a joint stock company, a joint venture and a government or any
department, agency or political subdivision thereof.

         "Purchaser", as used herein shall mean NCD, or any wholly-owned
subsidiary of NCD to which this Agreement has been duly assigned prior to
Closing, provided that any such assignment is reasonably acceptable to the
Company.

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         "Software" shall mean all software (including object and source code,
in machine readable and listing form), documentation (including internal
documentation, documentation made available to customers and training
materials), flowcharts, source code notes, software tools, compilers, test
routines and information, in whatever form, and all revisions, release levels
and versions of the foregoing offered for sale or license by the Company,
developed by or for the Company or in the possession of the Company as of the
Closing Date.

         "Subsidiary" shall mean any entity of which the securities (including
stock, partnership interests, Membership interests, etc.) having a majority of
the ordinary voting power are, at the time as of which any determination is
being made, owned by the Company either directly or through one or more
Subsidiaries.

         In addition, the following terms shall have the meaning ascribed to
each such term in the Section of the Agreement set forth opposite such term:

<TABLE>

<S>                                                 <C>

"Affiliate"                                          8.2(b)

"Assignment and Assumption"                          2.4(b)

"Assets"                                             2.1

"Assumed Obligations"                                2.4(a)

"Base Price"                                         4.2

"Controlling Purchaser Party"                        8.2(c)

"Earn-Out"                                           4.3

"Earn-Out Year"                                      4.3

"Excluded Assets"                                    2.2

"Extraordinary Events"                               8.2(c)

"Inventory"                                          2.1(c)

"Loan"                                               4.2

"Multiplicity Products"                              4.4

"Purchase Price"                                     4.1

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"Revenue"                                            4.4

"ROFF" (Right of First Refusal)                      8.2(b)

"Transfer Instrument"                                2.3

"Trigger Point"                                      4.3

</TABLE>

         2.  TRANSFER OF ASSETS.

         2.1 PURCHASE AND SALE OF ASSETS. Upon the terms and subject to the
conditions set forth in this Agreement at the Closing (as such term is
hereinafter defined) the Company shall sell, grant, convey, assign, transfer and
deliver to the Purchaser, all of the assets and business of the Company (the
"Assets"), other than those assets specifically excluded pursuant to Section 2.2
of this Agreement. "Assets" as used herein shall include without limiting the
generality of the foregoing:

         The Purchaser shall purchase and accept delivery of, all of the
tangible and intangible assets and properties of every kind and description,
wherever located, owned by the Company or in which the Company has an interest
as of the Closing Date (as hereinafter defined), other than those assets
specifically excluded pursuant to Section 2.2 of this Agreement, including,
without limiting the generality of the foregoing:

                  (a)      All software;

                  (b)      All Intellectual Property Rights of the Company;

                  (c)      All inventories of software, or any portions thereof
                           (hereinafter the "Inventory");

                  (d)      The Company's right, title and interest in the leases
                           listed on Schedule 2.1(d) attached hereto, including
                           all sub-leases, licenses, options and related
                           agreements, if any (the "Third-Party Leases");

                  (e)      All copyrights and patents of the Company;

                  (f)      All capital improvements, rent security on leases
                           being assumed by the Purchaser and all other deposits
                           and prepayments made by the Company which relate to
                           the assets being purchased by the Purchaser
                           hereunder;

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                  (g)      All furniture, fixtures, leasehold improvements,
                           machinery, equipment, computers, computer software,
                           and office furnishings and equipment owned or leased
                           by the Company;

                  (h)      All vendor and vendor ID numbers of the Company;

                  (i)      All books, files, papers, records and other data of
                           the Company (excluding the Company's minute books and
                           Member records) relating to the assets, business and
                           operations of the Company.

                  (j)      All other tangible and intangible property of the
                           Company of any kind,

                  (k)      The Company's franchises, permits and licenses to
                           conduct its business as conducted (other than the
                           Company's franchise as a limited liability Company),
                           contracts and agreements, customer lists, restrictive
                           covenants and similar obligations of present and
                           former Members, officers and employees, and all other
                           property and rights of every kind or nature owned by
                           the Company whether or not specifically referred to
                           in this Agreement and whether or not carried on the
                           books of the Company as an asset, except for those
                           assets specifically excluded herein.

         2.2 EXCLUDED ASSETS. It is specifically understood and agreed by the
parties hereto that the Company is not selling, and the Purchaser is not
purchasing, the following assets of the Company (the "Excluded Assets"):

         (a)      Any cash and cash equivalents on hand and in bank accounts and
                  all securities;

         (b)      The accounts receivable of the Company, including accounts
                  receivable from officers or affiliates of the Company Members;

         (c)      The Company's franchise as a limited liability company, and
                  its minute books and Member interest;

         (d)      The personal effects of the Designated Persons set forth on
                  Schedule 2.2(d);

         (e)      Any claims or rights against customers and creditors accrued
                  prior to the Closing Date; and

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         (f)      Any claims pursuant to policies of insurance or fidelity bonds
                  to the extent accrued prior to the Closing Date.

         2.3 METHOD OF CONVEYANCE. The sale, transfer, conveyance, assignment
and delivery by the Company of the Assets to the Purchaser in accordance with
Section 2.1 hereof shall be effected on the Closing Date by the Company's
execution and delivery of instruments of conveyance and transfer by Bill of
Sale, in the form annexed as Exhibit A hereto (the "Transfer Instrument") or
such other instruments of conveyance as counsel for the Purchaser shall deem to
be reasonably required to transfer instruments. At the Closing, Company shall
transfer to the Purchaser, good and valid title to all of the Assets, free and
clear of any and all liens, encumbrances, claims and other restrictions of any
kind or nature whatsoever and subject only to the liabilities to be specifically
assumed by the Purchaser pursuant to Section 2.4 hereof.

         2.4      ASSUMED OBLIGATIONS.

         (a) On the Closing Date, the Purchaser shall assume, and shall agree to
         satisfy and discharge as the same shall become due: only those
         pre-closing liabilities and obligations of the Company, and agreements
         and engagements of the Company listed on Schedule 2.4(a) hereof and
         those fulfillment obligations arising post-closing in connection with
         the processing and delivery to customers of confirmed customer orders
         entered into by the Company in the ordinary course of business
         (collectively as the "Assumed Obligations").

         (b) In confirmation of the Purchaser's assumption of the Assumed
         Obligations as set forth in this Section 2.4, the Purchaser shall
         execute and deliver to the Company at Closing an Assignment and
         Assumption Agreement in the form attached hereto as Exhibit B (the
         "Assignment and Assumption").

         (c) Except as set forth in this Section 2.4, the Purchaser shall not
         assume or be responsible for any liability, obligation, debt or
         commitment of the Company, including but not limited to: (a)
         liabilities or obligations incident to, or arising out of or incurred
         with respect to, this Agreement and the transactions contemplated
         hereby (including any and all sales, use, income or other taxes arising
         out of the transactions contemplated hereby), or (b) liabilities or
         obligations which otherwise arise or are asserted by reason of events,
         acts or transactions occurring, or the operation of the Company's
         business, prior to the Closing Date.

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3.       BULK TRANSFER LAW COMPLIANCE.

         This Agreement, and Purchaser's obligations hereunder, are conditioned
upon the Company's compliance with the Indiana Uniform Commercial Code-Bulk
Transfers Law, or the receipt of opinion of counsel to the Company, reasonably
satisfactory to counsel to the Purchase, that the transaction is exempt from the
provisions thereof.

4.       PURCHASE PRICE

         4.1 PURCHASE PRICE. The aggregate Purchase Price for the Assets (the
"Purchase Price") shall be the sum of the Base Price (as hereinafter defined)
and the Earn-Out (as hereinafter defined).

         4.2 BASE PRICE. The Base Price shall be U.S. Two Million One Hundred
Thousand Dollars ($2,100,000) payable by the Purchaser to the Company at the
Closing, plus the forgiveness by Purchaser of a Seventy-Five ($75,000) Thousand
Dollar loan ("Loan") advanced by it to the Company.

         4.3 EARN-OUT. In addition to the Base Price, the Purchaser shall pay to
the Company an amount (the "Earn-Out") based upon a percentage of Revenue (as
hereinafter defined) realized from the sale of Multiplicity Products (as
hereinafter defined) during each Earn-Out Year (as hereinafter defined).

         (a)      First Earn-Out Year - Ten percent (10%) of Revenue up to Three
                  Million Dollars ($3,000,000) and Twenty percent (20%) of
                  Revenue in excess of $3,000,000;

         (b)      Second Earn-Out Year- Nine percent (9%) of Revenue up to Nine
                  Million Dollars ($9,000,000) and Eighteen percent (18%) of
                  Revenue in excess of $9,000,000;

         (c)      Third Earn-Out Year - Eight percent (8%) of Revenue up to
                  Fifteen Million Dollars ($15,000,000) and Sixteen percent
                  (16%) of Revenue in excess of $15,000,000.

         (d)      Fourth Earn-Out Year - Five percent (5%) of Revenue.

The term "Earn-Out Year" shall mean four consecutive one-year periods, the first
of which shall commence on the earlier of (i) the first day of any month in
which the Purchaser recognizes Revenue of not less than Ten Thousand Dollars
($10,000) from the Multiplicity Products or (ii) May 1, 2000.

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         By way of illustration, if Revenue in the Second Earn-Out Year is
Fifteen Million Dollars ($15,000,000), then the Earn-Out due the Company shall
be the sum of (.09 x $9,000,000) and (.18 x $6,000,000), or One Million Eight
Hundred Ninety Thousand Dollars ($1,890,000).

         If there is a material change in the outlook for sales of the
Multiplicity Products, the parties shall negotiate in good faith the reduction
of the Trigger Point for the doubling of the Earn-Out payment rate in the
successive years. ("Trigger Point" means the $9,000,000 amount in the Second
Earn-Out year and the $15,000,000 amount in the Third Earn-Out Year.)

         4.4 MULTIPLICITY PRODUCTS AND REVENUE. For the purposes of this
Agreement; (a) the term "Multiplicity Products" shall mean all software
developed by the Company as of the Closing Date and any derivative software
products in existence or developed during the Earn-Out period and/or any part
thereof; (b) the term "Revenue" shall mean all revenues in respect of
Multiplicity Products booked, recognized or recorded by the Purchaser during an
Earn-Out Year, as determined on the accrual basis of accounting and in
accordance with generally accepted accounting principles consistently applied,
without reduction for non-cash expenses except for normal returns and customer
discounts, including all (i) fees from the sale, licensing, maintenance, support
and customization of Multiplicity Products,(ii) fees from training and
consultation related to Multiplicity Products, (iii) revenues received from
original equipment manufacturer agreements pertaining to Multiplicity Products,
(iv) fees from pay-per-use services, (v) Multiplicity Products web portal
revenue (whether generated from sales, advertisements, Internet partner fees,
pass-through transactions or referral fees), and (vi) revenues received or
realized from the embedding of Multiplicity Products in the hardware or software
of the Purchaser or of any venture in which the Purchaser is a partner, Member
or stockholder.

         In the event of any bundled sales of Multiplicity Products with other
products of the Purchaser, the total sales price shall be apportioned as between
the components proportionate to the stand-alone prices of such components.

         4.5 PAYMENT OF EARN-OUT. A determination as to the amount of the
Earn-Out due to the Company shall be forwarded to the Company within thirty (30)
days after the end of each calendar quarter, and shall be accompanied by (i) a
report substantially in the form set forth on Schedule 4.5, and (ii) the
Purchaser's check (or, if the

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Company requests, a wire transfer) in payment of the full amount thereof.
Earn-Out amounts not paid when due shall accrue interest at the rate of one and
one-half percent (1.5%) per month.

         The Company shall have the right, within a period of fifteen (15) days
after receipt of the determination of the Earn-Out, to notify the Purchaser that
the Company wishes to have an accountant of its choosing verify the Earn-Out
amount. This right may not be exercised more than once annually, but if so
exercised would apply to the prior four calendar quarters. The Purchaser shall
provide the Company's accountant with all documents reasonably required to
verify the Earn-Out amount. Such notice and examination shall be completed
within forty-five (45) days of the Company's receipt of the initial
determination. If the accountant for the Company shall determine that there is
an understatement of the amount due the Company and the accountants for the
Purchaser and the Company cannot agree, then the accountants for both the
Purchaser and the Company shall select a third party independent accounting firm
to make such review and the determination of such third party accountant shall
be binding upon both the Purchaser and the Company. If the accountant for the
Company shall determine that there was an understatement of the amount due the
Company and the accountant for the Purchaser agrees, and the amount of such
understatement varies by less than ten percent (10%) from the Purchaser's
original Earn-Out determination, the Company shall bear the expense of its
accountant. If the accountant for the Company and the Purchaser agree that the
Purchaser understated the Earn-Out by ten percent (10%) or more, the Purchaser
shall reimburse the Company for the reasonable expenses of its accountant
relating to such determination. If such third party accountant is required to be
retained, the expense thereof shall be borne (i) equally by Purchaser and by the
Company, if such accountant determines the Earn-Out amount is within ten percent
(10%) of the Purchaser's Earn-Out determination, and (ii) by the Purchaser, if
such accountant determines the Purchaser understated the Earn-Out amount by ten
percent (10%) or more.

         4.6 MINIMUM EARN-OUT PAYMENTS. Notwithstanding any other provision
herein contained, the parties have fixed certain minimum Earn-Out payments, as
follows:

                  (a)      For each managed session or equivalent of
                           Multiplicity Products provided by Purchaser to any
                           customer, a minimum of One Dollar ($1.00).

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                  (b)      None of the sums set forth in Section 4.6 hereof
                           shall become due and payable under any event if: The
                           Purchaser has complied with its obligations to make
                           Earn-Out payments to the Company and the fact that
                           the Company has not received any amount of Earn-Out
                           payments is not due to any clear and specified
                           default by the Purchaser. Both parties recognize that
                           the Earn-Out payments are conditional upon receipt of
                           Revenues, and to that extent are speculative. Neither
                           party has made any guarantees to the other of minimum
                           Earn-Out payments.

         4.7 ALLOCATION OF PURCHASE PRICE. The parties agree that the Base
Purchase Price shall be allocated as set forth in Schedule 4.7, and that the
Earn-Out payments, when paid, shall further be allocated as set forth in
Schedule 4.7. The parties acknowledge that the allocation of the Purchase Price
hereunder was bargained for and negotiated and each agrees to report this
transaction for all purposes, including financial reporting and tax purposes, in
a manner consistent with such allocation in accordance with all applicable
regulations of the Internal Revenue Code of 1986, as amended, and the
regulations thereunder. Neither party shall voluntarily take any inconsistent
position thereafter whether in the course of an Internal Revenue Service audit
or otherwise.

         4.8 PUBLIC OFFERING RIGHTS. In the event Revenues realized from
Multiplicity Products become a substantial part (ten (10%) percent or more) of
the revenues of NCD on a consolidated basis, and in the event that NCD shall
thereafter file a registration statement relating to any underwritten public
offering of its capital stock, or of the capital stock of any subsidiary or
business unit thereof containing the Multiplicity Products or any "tracking"
stock thereof, none of which is currently contemplated, then, subject to the
consent of the underwriters, which the Purchaser shall exercise its best efforts
to obtain, the current unit holders of the Company shall be offered, the option
to subscribe as "friends" of the Company and to, purchase and pay for a small
fraction (approximately 2%) of such underwritten securities, in amounts to be
determined by the underwriter, at the same price and on the same terms as such
securities are being offered to the public. This right shall terminate on
December 31, 2004. No representation has been made that this provision is or
will be of value to the Unit holders or that if an offering of the type
described becomes available, that the right to subscribe will be a valuable
right. Any such right will require the delivery of a valid prospectus.

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         5. CLOSING. Subject to the satisfaction of the conditions set forth in
Sections 9 and 10 hereof, the closing of the transactions contemplated by this
Agreement (the "Closing") shall occur at the offices of the Purchaser at 11:00
a.m. PST on January 7, 2000, or at such other time and place as the parties may
mutually agree (the "Closing Date").

         6. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. In order to induce
the Purchaser to enter into and consummate the transactions contemplated hereby,
the Company hereby represents and warrants to and covenants and agrees with, the
Purchaser, as of the date hereof and as of the Closing Date, as follows:

         6.1 ORGANIZATION. The Company (a) is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Indiana, (b) has all requisite corporate power and authority to own, lease and
operate its properties, to carry on its business as presently conducted and to
execute, deliver and perform this Agreement, and (c) has never conducted
business under any name other than that set forth in this Agreement.

         6.2 AUTHORIZATION OF THIS AGREEMENT. Except as set forth on Schedule
6.2, the execution, delivery and performance by the Company of this Agreement
and of each and every Agreement, document and instrument contemplated hereby and
the consummation of the transactions contemplated hereby and thereby have been
duly authorized by all requisite action, and the Agreement constitutes, and when
executed and delivered the Instruments of Conveyance and the Assignment and
Assumption will constitute, the valid and binding obligation of the Company,
each enforceable in accordance with their terms, subject to applicable
bankruptcy, reorganization, insolvency, moratorium and similar laws affecting
creditors' rights generally and to general principles of equity.

         Except as set forth on Schedule 6.2, the execution and delivery of this
Agreement by the Company, the consummation of the transactions contemplated
hereby and compliance with the provisions hereof by each of the Company, will
not (a) violate any provision of law, statute, rule or regulation, or any
ruling, writ, injunction, order, judgment or decree of any court, administrative
agency or other governmental body applicable to the Company or (b) conflict with
or result in any breach of any of the terms, conditions or provisions of, or
constitute (with due notice or lapse of time, or both) a default (or give rise
to any right of termination, cancellation or acceleration) under, the Articles
of Organization or Operating Agreement, or under any note, indenture, mortgage,
lease, purchase or sales order or other material

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contract, agreement or instrument to which the Company is a party or by which it
or any of its property is bound or affected, or (c) result in the creation of
any lien, security interest, charge or encumbrance upon any of the properties or
assets of the Company.

         6.3 NO CONSENTS OR APPROVALS REQUIRED. Except as set forth on Schedule
6.3, no consent, approval or authorization of, or declaration to, or filing
with, any Person is required for the valid authorization, execution, delivery
and performance by the Company of this Agreement.

         6.4 EQUITY INVESTMENTS. The Company has never had, nor does it
presently have, any Subsidiaries, nor has it owned, nor does it presently own,
any capital stock or other proprietary interest, directly or indirectly, in any
corporation, limited liability company, association, trust, partnership, joint
venture or other entity.

         6.5 FINANCIAL INFORMATION.

                  (a) The Company has previously delivered to the Purchaser an
unaudited balance sheet of the Company (the "Balance Sheet") for the period
ended November 30, 1999 (the "Balance Sheet Date"), and the related statement of
operations,(all of the foregoing, collectively, the "Financial Statements").

                  (b) The Financial Statements (together with any notes thereto)
(i) are true, correct and complete in all material respects, (ii) are in
accordance with the books and records of the Company, (iii) fairly present the
financial condition of the Company as of the date indicated and the results of
operations of the Company for the period indicated and (iv) have been prepared
in accordance with generally accepted accounting principles consistently
applied.

         6.6 ABSENCE OF UNDISCLOSED LIABILITIES. The Company has no obligations
or liabilities of any nature (matured or unmatured, fixed or contingent) which
were not provided for or disclosed in the Financial Statements. To the Company's
knowledge, all liability reserves established by the Company are adequate in all
respects. There are no loss contingencies (as such term is used under applicable
standards issued by the Financial Accounting Standards Board) which were not
adequately provided for in the Financial Statements.

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         6.7 ABSENCE OF CHANGES. Since the Balance Sheet Date, the Company has
conducted its business only in the ordinary course consistent with past practice
and there has not been, and the Company has not agreed to cause:

                  (a) any borrowing or agreement to borrow any funds or to
create any liability or obligation of any nature whatsoever (contingent or
otherwise), other than (i) current liabilities or obligations incurred in the
ordinary course of business; and (ii) the Loan.

                  (b) any waiver of any material right of the Company or the
cancellation of any debt or claim held by the Company;

                  (c) any declaration or payment of dividends on, or other
distributions with respect to, or any direct or indirect redemption or
acquisition of, or any sale or issuance of any Membership interest in the
Company, or any agreement or commitment therefor;

                  (d) any mortgage, pledge, lien, sale, assignment or transfer
of any tangible or intangible assets of the Company, except with respect to
tangible assets in the ordinary course of business consistent with past
practice;

                  (e) any loan or advance or guarantee of indebtedness by the
Company to any Person or any agreement or commitment therefor except as noted in
subsection (a) above;

                  (f) any damage, destruction or loss (whether or not covered by
insurance) other than ordinary wear and tear adversely affecting the assets,
property or business of the company;

                  (g) any increase, direct or indirect, in the compensation paid
or payable to Designated Persons;

                  (h) any change in the accounting or tax reporting methods or
practices followed by the Company;

                  (i) any adverse change in any material contract or agreement
by which the Company or its assets are bound;

                  (j) any change in the Company's accounting, tax reporting,
billing or collections principles, methods, policies or procedures, nor any
failure on the part of the Company to comply with such principles, methods,
policies and procedures; or

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                  (k) any strike or any material controversies or unsettled
grievances pending or threatened, between the Company and any of its employees
or a collective bargaining organization representing or seeking to represent
such employees.

         6.8 TAX MATTERS. All federal, state and local tax returns and tax
reports (collectively the "Returns")required to be filed by the Company have
been filed with the appropriate governmental agencies in all jurisdictions in
which such returns and reports are required to be filed and all of the foregoing
are true and correct and complete. All taxes (including interest and penalties)
required to have been paid with such Returns or accrued by the Company have been
fully paid or are adequately provided for in the Financial Statements (the
"Service"). No issues have been raised by the Service or any other taxing
authority in connection with any of the Returns, and no waivers of statutes of
limitations have been given or requested with respect to the Company. All
deficiencies asserted or assessments (including interest and penalties) made as
a result of any examination by the Service or by appropriate state or
departmental tax authorities of the federal, state or local income tax, sales
tax or franchise tax returns of or with respect to the Company have been fully
paid or are adequately provided for on the Balance Sheet and no proposed (but
unassessed) additional taxes, interest or penalties have been asserted. The
Company has not elected to be treated as an "S" corporation or a collapsible
corporation pursuant to Section 1362(a) or Section 341(f) of the Internal
Revenue Code of 1986, as amended (the "Code"), nor has it made any other
elections pursuant to the Code (other than elections which relate solely to
matters of accounting, depreciation or amortization) which would have a material
adverse effect on the Company, its financial condition, its business as
presently conducted or presently proposed to be conducted or any of its
properties or assets.

         6.9 ASSETS. Except as set forth on Schedule 6.9, the Company has good
and marketable title to all of the property and assets, real, personal or fixed,
tangible or intangible, reflected as assets in the Financial Statements, used in
the business of the Company, or acquired by the Company since the Balance Sheet
Date (other than assets disposed of in the ordinary course of business since
that date), subject to no mortgages, liens, security interests, pledges, charges
or other encumbrances of any kind. The Company is not obligated under any
contract or agreement or subject to any charter or other corporate restriction,
which materially adversely affects the Company's business, properties, assets,
prospects or condition (financial or otherwise). The Company's

                                      -15-

<PAGE>

equipment and other tangible assets are in good operating condition in all
material respects and are fit for use in the ordinary course of business.

         6.10 CONTRACT RIGHTS, INTELLECTUAL PROPERTY RIGHTS, AND SOFTWARE.

                  (a) A complete list of the Company's material Contract Rights,
Intellectual Property Rights and Software is set forth on Schedule 6.10. Except
as set forth on Schedule 6.10, no third party has any ownership right title,
interest, claim in or lien on any of the Company's Intellectual Property Rights.
There are no Contract Rights, Intellectual Property Rights, or Software
necessary or required to enable the Company to carry on its business as now
conducted and as presently proposed to be conducted, which the Company does not
own. No Person is entitled to collect fees, royalties, or other payments
relating to the Company's use of Contract Rights, Intellectual Property Rights,
or Software in its business, except as set forth in Schedule 6.10.

                  (b) The Company's Software and Intellectual Property Rights
have not violated or infringed, and are not currently violating or infringing,
and the Company has not received any communications alleging that the Company
(or any of its employees or consultants) has violated or infringed or, by the
Company conducting its business as presently proposed to be conducted, would
violate or infringe, any patents, copyrights, trade secrets, trademarks or other
proprietary rights of any other person or entity which violation or infringement
would have a material adverse effect on the operations or financial condition of
the Company.

         6.11 LITIGATION. There is no action, suit, proceeding, claim,
arbitration or investigation ("Action") pending (or currently threatened)
against the Company, its activities, properties or assets or against any
Designated Person in connection with such Designated Person's relationship with,
or actions taken on behalf of, the Company, and there is no factual basis for
any such Action. The Company is not a party to or subject to the provisions of
any order, writ, injunction, judgment or decree of any court or government
agency or instrumentality and there is no factual basis for any such Action. The
Company is not a party to or subject to the provisions of any order, writ,
injunction, judgment or decree of any court or government agency or
instrumentality and there is no Action by the Company currently pending or which
the Company intends to initiate.

                                      -16-

<PAGE>

         6.12 NO DEFAULTS. Except as set forth in Schedule 6.12, the Company is
not in default (a) under its Articles of Organization or Operating Agreement, or
under any note, indenture, mortgage, lease or any other material contract,
agreement or instrument to which the Company is a party or by which it or any of
its property is bound or affected or (b) with respect to any order, writ,
injunction, judgment or decree of any court or any federal, state, municipal or
other domestic or foreign governmental department, commission, board, bureau,
agency or instrumentality. There exists no condition, event or act which
constitutes, or which after notice, lapse of time or both, would constitute, a
default under any of the foregoing.

         6.13 EMPLOYEES.

                  (a) The Company is not bound by or subject to any contract,
commitment or arrangement with any labor union, and to the Company's knowledge,
no labor union has requested, sought or attempted to represent any employees,
representatives or agents of the Company. There is no strike or other labor
dispute involving the Company pending nor, to the Company's knowledge,
threatened.
                  (b) The Company is not aware that any Designated Person or
consultant who is currently employed or engaged by the Company intends to
terminate his or her employment or engagement with the Company, nor does the
Company have any present intention to terminate the employment or engagement of
any Designated Person or consultant.

                  (c) The Company is not aware that any Designated Person or
consultant presently associated with the Company is obligated under any
restrictive agreement (including licenses, covenants or commitments of any
nature) that would interfere with the use of his or her best efforts to carry
out his or her duties for the Purchaser subsequent to closing or conflict with
the Purchaser carrying on the Company's business as presently conducted or
proposed.

         6.14 COMPLIANCE WITH LAWS. LICENSES AND PERMITS. The Company (a) has
complied in all material respects with all federal, state, local and foreign
laws, ordinances, regulations and orders applicable to its business or the
ownership of its assets and has received no notice of non-compliance therewith
and (b) has obtained all licenses and permits necessary or required to enable it
to carry on its business as now conducted and as presently proposed to be
conducted, as to which failure to comply or obtain would have

                                      -17-

<PAGE>

material adverse effect on the operations or financial condition of the Company.
Such licenses and permits are in full force and effect, and no proceeding is
pending or threatened, to revoke or limit the same.

         6.15 INSURANCE. Schedule 6.15 attached hereto contains a description of
each insurance policy maintained by the Company with respect to its properties,
assets and business. Each such policy is valid and enforceable and duly in force
and all premiums with respect thereto are paid to date. The Company believes
that the amounts of coverage under such policies of insurance are adequate.

         6.16 AGREEMENTS. Schedule 6.16 attached hereto is a list of all
material contracts, commitments and agreements, written or oral, to which the
Company is a party. True and correct copies of all such contracts, commitments
and agreements have been or will be delivered to the Purchaser. Except as
contemplated hereby, the Company is not a party to any written or oral
agreements which would constitute a critical commitment for the Company.

         6.17 COMPLIANCE WITH ERISA. Except as set forth on Schedule 6.17, the
Company does not (a) maintain, and it has never maintained, any employee benefit
plan subject to the Employee Retirement Income Security Act of 1974, as amended
("ERISA") or (b) contribute to, and has never contributed to, any such employee
benefit plan maintained by any other person or entity. The Company is in
compliance with applicable provisions of ERISA, the regulations and published
authorities thereunder, and all other laws applicable with respect to all such
employee benefit plans, agreements and arrangements. No civil action has been
brought against the Company pursuant to ERISA, and no such action is pending or
threatened in writing or orally against any fiduciary of any such plan, and
there exists no grounds for any such action.

         6.18 DISCLOSURE. No written document, certificate, instrument or
statement furnished to the Purchaser by or on behalf of the Company in
connection with the transactions contemplated hereby contains any untrue
statement of a material fact or omits to state a material fact necessary in
order to make the statements contained herein and therein not misleading.

         6.19 CONFLICTS OF INTEREST. Except as set forth on Schedule 6.19, no
officer or Member of the Company has any direct or indirect interest (a) in any
entity which does business with the Company, or (b) in any property, asset or
right which is used by the Company in the conduct of its business, or (c) in any
contractual relationship with the Company other than as an employee, director or
shareholder.

                                      -18-

<PAGE>

         6.20 ABSENCE OF RESTRICTIVE AGREEMENTS. No employee of the Company is
subject to any secrecy or non-competition agreement or any agreement or
restriction of any kind that would impede in any way the ability of such
employee to carry out fully all activities of such employee in furtherance of
the business of the Purchaser.

         6.21 COMPLIANCE WITH ENVIRONMENTAL LAWS.

                  (a) No real property owned or leased by the Company (the
"Property") includes hazardous or regulated substances or hazardous wastes as
defined in any federal, state, local or other governmental statutes, laws,
regulations, rules, ordinances, codes, standards, orders, licenses and permits
relating to environmental, public health and safety matters (hereinafter
collectively referred to as "Environmental Laws").

                  (b) Neither the Property nor the Company is subject to any
pending investigation or inquiry by any governmental authorities or any remedial
obligations under any applicable Environmental Laws.

         6.22 REAL PROPERTY. Except as set forth in Schedule 6.22, the Company
owns no real property or interest in real property.

         6.23 REAL PROPERTY LEASES. Schedule 6.23 contains a true, correct and
complete list of all of the real property leases (the "Leases") to which the
Company is a party, including the street address of each property, the name and
address of each landlord and the expiration date of each lease, exclusive of any
options. A True, correct and complete copy of each of the Leases and any and all
amendments to any of them have been delivered to the Purchaser. The Company has
no obligation which it has been required, as tenant under any Lease, to perform
through the date hereof, which it has not performed, and the Company has no
verbal understandings with any lessors that are not evidenced in writing in the
Leases. The Company is not in default under any such Lease. Except for
obligations under the Leases that have not yet become payable, there are no
claims or offsets against the Company under any Lease. The applicable federal,
state or local law, rule, regulation or procedure relating to any Lease, or with
respect to any leasehold improvement or fixture owned by the Company.

         6.24 TANGIBLE ASSETS. Except as set forth on Schedule 6.24, the Company
has good and marketable title to all of its tangible assets, free and clear of
any and all liens, and such tangible assets are in good condition and in a state
of good maintenance and repair, and are suitable for the purposes used.

                                      -19-

<PAGE>

         6.25 PRODUCT QUALITY, WARRANTY CLAIMS, PRODUCT LIABILITY. All products
and services sold, provided or delivered by the Company to its customers on or
prior to the Closing Date conform or will conform in all material respects to
applicable contractual commitments, express or implied warranties, product and
service specifications and quality standards and, the Company has no liability
(and there is no basis for any present or future Action against the Company
giving rise to any liability) for replacement or repair thereof or other damages
in connection therewith. No product liability claims have been asserted against
the Company.

         6.26 SOFTWARE. Except as set forth on Schedule 6.26 there are no
errors, malfunctions, and/or defects in the Software known as of the date of
this Agreement which materially adversely affect the performance of the
Software; there is no known unauthorized use of the Software or any portion
thereof by any third party; and the Software and all portions thereof have been
licensed for use by third parties only in accordance with the terms and
conditions of the Company's Software License Agreement, the form of which is
attached to Schedule 6.26.

         6.27 ACCOUNTS RECEIVABLE; ACCOUNTS PAYABLE. The accounts receivable of
the Company reflected on the Balance Sheet or thereafter acquired by it, have
been collected or are collectible at the aggregate gross recorded amounts
thereof. The accounts payable of the Company reflected on the Balance Sheet or
thereafter incurred by it, have been paid or are payable at the aggregate gross
recorded amounts thereof. The Company shall continue to pay all accounts payable
incurred up to and including the Closing Date in a timely manner.

         6.28 SUPPLY OF SUPPLIES, INVENTORY AND EQUIPMENT. The Company is not a
party to any arrangement or agreement which prohibits, limits or restricts its
ability to obtain its supplies, inventory or equipment.

         6.29 WARN LIABILITIES. The Company has not (i) incurred any liability
under the federal Worker Adjustment Retraining and Notification Act of 1989
("WARN"); and (ii) assuming the Purchaser extends offers of employment to
substantially all of the Company's employees, and continues to operate the
Company's business in the ordinary course in the same general manner as operated
by the Company prior to the Closing, the Purchaser will not incur any liability
under WARN by reason of any such actions taken by the Company prior to the
Closing.

                                      -20-

<PAGE>

         6.30 YEAR 2000 COMPLIANCE OF SOFTWARE. The Software is able to
accurately process, calculate, compare, and sequence date/time data including
leap year calculations from into, and as between the twentieth and twenty-first
centuries, and the years 1999 and 2000.

         6.31 NO BROKER FEE. The Company has not dealt or negotiated with any
Person who has or will have, as a result of the transaction contemplated by this
Agreement, any right, interest or claim against or upon the Purchaser for any
commission, fee or other compensation as a finder or broker.

         7. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER. The Purchaser
hereby represents and warrants to and covenants and agrees with, the Company, as
of the date hereof and as of the Closing Date, as follows:

         7.1 ORGANIZATION. The Purchaser is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware.
The Purchaser has all requisite power and authority to own, lease and operate
its properties, to carry on its business as presently conducted, to execute this
Agreement and perform its obligations under this Agreement.

         7.2 AUTHORIZATION OF THIS AGREEMENT. The execution, delivery and
performance by the Purchaser of this Agreement and of each and every Agreement,
document and instrument contemplated hereof, and the consummation of the
transactions contemplated thereby have been duly authorized by all requisite
action, and the Agreement constitutes the valid and binding obligation of the
Company enforceable in accordance with its terms, subject to applicable
bankruptcy, reorganization, insolvency, moratorium and similar laws affecting
creditors rights generally and to general principles of equity.

         7.3 NO BROKER FEE. The Purchaser has not dealt or negotiated with any
Person who has or will have, as a result of the transaction contemplated by this
Agreement, any right, interest or claim against or upon the Company for any
commission, fee or other compensation as a finder or broker.

         7.4 NO CONFLICT. The execution and delivery of this Agreement by the
Purchaser, the consummation of the transactions contemplated hereby and
compliance with the provisions hereof by the Purchaser will not (a) violate any
provision of law, statute, rule or regulation, or any ruling, writ, injunction,
order, judgment or decree of any court, administrative agency or other
governmental body applicable to the Purchaser or (b) conflict with or result in
any breach of any of the terms, conditions or

                                      -21-

<PAGE>

provisions of, or constitute (with due notice or lapse of time, or both) a
default (or give rise to any right of termination, cancellation or acceleration)
under, the certificate of incorporation or bylaws of the Purchaser or under any
note, indenture, mortgage, lease, purchase or sales order or other material
contract, agreement or instrument to which the Purchaser is a party.

         8. COVENANTS; OTHER AGREEMENTS.

         8.1 PRE-CLOSING. Prior to the Closing, the Company hereby covenants and
agrees to:

                  (a) Conduct the business of the Company in the ordinary course
including, but not limited to, continued development of Software, retention of
employees, and payment of ordinary and normal business expenses;

                  (b) Comply in all material respects with all contractual
obligations and legal requirements applicable to it;

                  (c) Refrain from entering into any distribution, licensing,
financing or other agreements outside the normal course of business, without the
prior written consent of the Purchaser;

                  (d) Permit the Purchaser and any of its employees, agents and
representatives and their representatives to have reasonable access to the
Company's books and records during normal business hours.

                  (e) Refrain from taking any action that would cause any
representation or warranty made herein to be untrue in any material respect or
materially misleading;

                  (f) Provide the Purchaser with such other instruments,
agreements and documents as the Purchaser may reasonably request in order to
complete its due diligence review of the Company;

                  (g) Preserve, renew, and keep in full force and effect its
corporate existence and rights and franchises with respect thereto and maintain
in full force and effect all material permits, licenses, approvals, contracts,
etc. necessary to carry on the business as presently or proposed to be
conducted; and

                  (h) Obtain any and all consents, approvals or authorizations
of, and submit any and all declarations to, and make any filings with any Person
that is required for the valid authorization, execution, delivery and
performance by the Company

                                      -22-

<PAGE>

of this Agreement and for the consummation of the transactions contemplated
hereby.

                  (k) Prevent the occurrence of any lien or encumbrance on any
of the Assets.

         8.2 POST-CLOSING. Following the Closing, the Purchaser hereby covenants
and agrees as follows:

                  (a) The Purchaser shall use its commercially reasonable
efforts to diligently market the Multiplicity Products; and

                  (b) The Purchaser hereby gives the Company, in the event of
any sale of the portion of the Purchaser's business comprising the Multiplicity
Products, whether sold on a stand-alone basis or as part of a sale of a group of
related businesses, the right of first refusal ("ROFF") to purchase the assets
proposed to be sold, on the same terms and conditions which the Purchaser
proposes to accept from any other BONA FIDE offeror. The Purchaser shall give
the Company prompt written notice that it contemplates sale of the Business and
the terms and conditions of any such bona fide offer which it finds
satisfactory. The Company shall have twenty (20) days following receipt of such
notice within which to give the Purchaser written notice of its intent to
exercise the ROFF. If the Company does not give notice of its exercise of the
ROFF together with a non-refundable deposit in the amount of ten percent (10%)
of the cash portion of the purchase price within such twenty (20) day period,
then the ROFF will become null and void as to that offer only and the Purchaser
may sell the assets proposed to be sold on substantially the same terms and
conditions offered to the Company to any other offeror within the next
succeeding six (6) month period. If the Purchaser intends to sell the assets on
substantially different terms and conditions or after the six (6) month period,
the ROFF shall apply to any such subsequent offering. If the Company gives
written notice of its exercise of the ROFF at any time and then defaults in the
exercise thereof, the ROFF shall become null and void and the Company shall
forfeit its deposit. For purposes hereof, the term "bona fide offeror" means an
entity which is not related to, affiliated with or under common control with the
Purchaser or its parent company (an "Affiliate").

         The ROFF shall continue for a period of five (5) years from the Closing
Date. The ROFF shall be binding on the Purchaser, and its Parent Company, all
Affiliates, successors and assigns thereof including any estate created by any
bankruptcy or reorganization (collectively, "Purchaser Parties"), and the ROFF
shall not be affected by any [continued on next page]

                                      -23-

<PAGE>

bankruptcy or reorganization of the Purchaser Parties or any of them or their
permitted assigns,.

                  (c) Upon the occurrence of any Extraordinary Event, as defined
in subparagraph (d) hereof, and the declaration thereof by the Company in
writing, within six (6) months after the occurrence thereof, Purchaser shall
provide to the Company, in lieu of any further Earn-Out payments to the Company,
an irrevocable permanent non-royalty bearing license to manufacture, sell,
sublicense, lease, and use the Multiplicity Products, and the Company shall have
the further right to (on proof of the occurrence of any Extraordinary Event and
such timely declaration) enjoin and permanently preclude the manufacture, sale
and use of the Multiplicity Products by Purchaser Parties, and their successors
and assigns.

                  (d) "Extraordinary Events" as used herein shall mean only: (i)
The Purchaser Party which control the Business ("Controlling Purchaser Party")
shall commence any case, proceeding or other action (A) under any existing or
future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up
liquidation, dissolution, composition or other relief with respect to it or its
debts, or (B) seeking appointment of a receiver, trustee, custodian or other
similar official for it or for all or any substantial part of its creditors; or
(ii) there shall be commenced against such Controlling Purchaser Party any case,
proceeding or other action of a nature referred to in clause (i) above which (A)
results in the entry of an order for relief or any such adjudication or
appointment, or (B) remains undismissed, undischarged or unbonded for a period
of 60 days; or (iii) there shall be commenced against such Controlling Purchaser
Party any case, proceeding or other action seeking issuance of a warrant of
attachment, execution, distraint or similar process against all or any
substantial part of the Business which results in the entry of an order for any
such relief which shall not have been vacated, discharged, or stayed or bonded
pending appeal, within 60 days from the entry thereof; or (iv) such Controlling
Purchaser Party shall take any action in furtherance of, or indicating its
consent to, approval of or acquiescence in, any of the acts set forth in clause
(i), (ii) or (iii) above; or (v) the failure of the Purchaser to pay Earn-Out
amounts when due, which failure continues for not less than sixty (60) days
after written demand for payment; (vi) after the sale of Purchaser or the
Controlling Purchaser Party, or after a Change of Control of the Purchaser or
the Controlling Purchaser Party, the

                                      -24-

<PAGE>

failure of successor management to comply with the provisions of Subsection 8.2
of this Agreement; or (vii) the Purchaser, or any successor, makes an
affirmative decision to discontinue and abandon the Multiplicity Product line.
(Such discontinuance and abandonment shall require either a statement by the
Purchaser or the Controlling Purchaser Party to such effect, or a substantially
complete cessation of marketing and sales activity with respect to the entire
Multiplicity Product line.)

                  (e) Upon the happening of any Extraordinary Event, as defined
in Section 8.2(d) hereof, the Company shall be entitled to the remedies pursuant
to Section 8.2(c) hereof. Any such remedies shall be in addition to any other
remedies it may have for actual damages suffered as a consequence of any breach
of this Agreement by Purchaser resulting in any lost Earn-Out payments for the
time periods prior to such Extraordinary Event.

         9. CONDITIONS/PRECEDENT TO THE COMPANY'S OBLIGATION TO CLOSE. The
Company's obligation to consummate the transactions contemplated by this
Agreement shall be conditioned on the satisfaction of the following conditions
(each a "Purchaser Condition") on or before the Closing.

         9.1 REPRESENTATIONS AND WARRANTIES. The representations and warranties
of the Purchaser contained in this Agreement will be true and correct at and as
of the Closing as though then made.

         9.2 LEGAL PROCEEDINGS. There shall be no Action commenced or, to the
knowledge of the Purchaser, threatened, and no judgment, order or injunction
shall have been rendered by any such tribunal or organization for the purpose of
restraining or prohibiting the transactions contemplated hereby, or which has or
may have a materially adverse effect on the business of the Purchaser.

         9.3 COMPLIANCE WITH AGREEMENT. The Purchaser shall have performed and
complied with all agreements and conditions required by this Agreement to be
performed or complied with by it prior to the Closing.

         9.4 DELIVERIES. The Purchaser shall have delivered or caused delivery
to the Company the Purchase Price and any other items to be delivered by it
hereunder.

         10. CONDITIONS PRECEDENT TO THE PURCHASER'S OBLIGATION TO CLOSE. The
Purchaser's obligation to consummate the transactions contemplated by this
Agreement shall be conditional on the satisfaction of the following conditions
(each, a "Company Condition") on or before the Closing:

                                      -25-

<PAGE>

         10.1 REPRESENTATIONS AND WARRANTIES. The representations and warranties
of the Company contained in this Agreement will be true and correct at and as of
the Closing as though then made.

         10.2 LEGAL PROCEEDINGS. There shall be no Action commenced or, to the
knowledge of the Company threatened, and no judgment, order or injunction shall
have been rendered by any such tribunal or organization for the purpose of
restraining or prohibiting the transactions contemplated hereby, or which has or
may have a materially adverse effect on the Assets or the business of the
Company.

         10.3 COMPLIANCE WITH AGREEMENT. The Company shall have performed and
complied with all agreements and conditions required by this Agreement to be
performed or complied with by it prior to the Closing.

         10.4 DELIVERIES. The Company shall have delivered or caused delivery to
the Purchaser the Bill of Sale and other instruments of conveyance required to
be delivered hereunder.

         10.5 NO MATERIAL CHANGE. There shall not have occurred since the date
of this Agreement any material adverse change in the business, or condition
(financial or otherwise) of the Company.

         10.6 APPROVALS AND CONSENTS. All approvals, authorizations and
consents, or orders or actions of or filing by the Company or the Purchaser with
any court, administrative agency or other governmental authority, required for
the consummation of the transactions contemplated hereby shall have been
obtained.

         10.7 KEY EMPLOYEES. The Purchaser shall be reasonably assured that
substantially all of the management personnel and key software engineers
specified in Schedule 10.7 attached hereof will be retained as employees of the
Purchaser following the Closing.

         10.8 UNSATISFIED CONDITIONS. If at the Closing any of the conditions
specified in this Section 10 shall not have been fulfilled to the reasonable
satisfaction of the Purchaser, the Purchaser, at its election, may adjourn the
closing for a reasonable period of time in order to permit the Company to
satisfy such conditions.

         11. CLOSING DOCUMENTS.

         11.1 At the Closing, the Company will have delivered to the Purchaser
all of the following documents:

                                      -26-

<PAGE>

                  (i) a Closing Certificate, executed by an officer of the
Company, dated the Closing Date, stating that the conditions specified in
Sections 10 have been fully satisfied;

                  (ii) a certificate executed by the Secretary of the Company as
to the (i) due existence of the Operating Agreement, (ii) incumbency of
officers, and (iii) the resolutions adopted by the Company's Members authorizing
the execution, delivery and performance of this Agreement, and the consummation
of all other transactions contemplated by this Agreement;

                  (iii) a copy of the Articles of Organization certified by the
Secretary of State of Indiana;

                  (iv)     a copy of the Operating Agreement;

                  (v) copies of all third party and governmental consents,
approvals and filings required in connection with the consummation of the
transactions hereunder;

                  (vi) a certificate of good standing issued by the Secretary of
State of Indiana and each other jurisdiction in which the Company is authorized
to transact business;

                  (vii) an opinion from counsel for the Company, to the effect
set forth in Schedule 11.1 (vii) attached hereto, which will be addressed to the
Purchaser, dated the date of the Closing and in form and substance reasonably
satisfactory to the Purchaser.

                  (viii) the Instruments of Conveyance;

                  (ix) the Assignment and Assumption; and

                  (x) such other documents relating to the transactions
contemplated by this Agreement as the Purchaser or its counsel may reasonably
request.

         11.2 At the Closing, the Purchaser will have delivered to the Company
all of the following documents:

                  (i) the Base Price as provided in Section 4.2 hereof;

                  (ii) a Closing Certificate, executed by an officer of the
Purchaser, dated the Closing Date, stating that the conditions specified in
Sections 9 inclusive, have been fully satisfied.

                  (iii) a certificate executed by an officer of the Purchaser as
to the (A) incumbency of officers, and (B) the

                                      -27-

<PAGE>

resolutions adopted by the Purchaser's board of directors authorizing the
execution, delivery and performance of this Agreement or that such Board action
is not required in connection with the transactions contemplated by this
Agreement;

                  (iv) the Assignment and Assumption;

                  (v) an offer of employment in the form attached hereto as
Schedule 11.1 (x) to Steve McNear (the "McNear Employment Letter"); and

                  (vi) such other documents relating to the transactions
contemplated by this Agreement as the Company or its counsel may reasonably
request.

         12. INDEMNIFICATION.

         12.1 COMPANY'S OBLIGATIONS.

                  The Company agrees to defend, indemnify and hold harmless the
Purchaser from, against and in respect of any and all demands, claims, actions
or causes of action, losses, liabilities, damages, assessments, taxes, costs and
expenses, including without limitation, interest, penalties and reasonable
attorneys' fees and expenses, asserted against, imposed upon or paid, incurred
or suffered by the Purchaser: (i) as a result of, arising from, in connection
with or incident to any breach or inaccuracy of any representation or warranty
of the Company in this Agreement, in any Instrument of Conveyance or the
Assignment and Assumption or in any other agreement or instrument executed and
delivered by the Company pursuant hereto, or any breach of any covenant or
agreement of the Company contained in this Agreement, in any Instrument of
Conveyance or the Assignment and Assumption or in any other agreement or
instrument executed and delivered by the Company pursuant hereto; (ii) as a
result of, or with respect to, any and all obligations or liabilities of the
Company, whether known or unknown, asserted or unasserted, contingent or
otherwise.

         12.2 PURCHASER'S OBLIGATIONS.

                  The Purchaser agrees to defend, indemnify and hold harmless
the Company from, against and in respect of any and all demands, claims, actions
or causes of action, losses, liabilities, damages, assessments, taxes, costs and
expenses, including without limitation, interest, penalties and reasonable
attorneys' fees and expenses, asserted against, imposed upon or paid, incurred
or suffered by the Company as a result of, arising from, in connection with or
incident to any breach or inaccuracy of any representation

                                      -28-

<PAGE>

or warranty of the Purchaser in this Agreement or in the Assignment and
Assumption or in any other agreement or instrument executed and delivered by the
Purchaser pursuant hereto, or the breach of any covenant or agreement of the
Purchaser made herein or in the Assignment and Assumption or in any other
agreement or instrument executed and delivered by the Purchaser pursuant hereto;
or (ii) as a result of, or with respect to, the Purchaser's failure to satisfy
and discharge the Assumed Obligations as the same shall become due.

         12.3 INDEMNITY PROCEDURES. A party or parties hereto agreeing to be
responsible for or to indemnify against any matter pursuant to this Agreement is
referred to herein as the "Indemnifying Party" and the other party or parties
claiming indemnity is referred to as the "Indemnified Party." An Indemnified
Party under this Agreement shall give prompt written notice to the Indemnifying
Party of any liability which might give rise to a claim for indemnity under this
Agreement. As to any claim, action, suit or proceeding by a third party, the
Indemnifying Party shall have the primary control of the defense, compromise or
settlement of any such matter through the Indemnifying Party's own attorneys and
at its own expense; provided, however, that in the event the Indemnifying Party
does not desire to control such defense, compromise or settlement, the
Indemnified Party may, in its discretion, exercise such control. The Indemnified
Party shall provide such cooperation and such access to its books, records and
properties as the Indemnifying Party shall reasonably request with respect to
any matter over which the Indemnifying Party is exercising control; and the
parties hereto agree to cooperate with each other in order to ensure the proper
and adequate defense thereof.

         In a case where responsibility for a matter giving rise to a claim for
indemnification is being shared by the parties, either party may elect to
relieve the other of its obligations of indemnification with respect to such
matter and, subject to the provisions of this section, such electing party may
thereupon assume full control of the resolution of such matter. If such election
is not made, control shall also be shared.

         13. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. Unless otherwise
expressly provided, all representations and warranties hereunder shall survive
for twelve (12) months following the Closing. All statements contained in any
certificate or other instrument delivered pursuant to this Agreement or in
connection with the transactions contemplated by this Agreement shall constitute
representations and warranties under this Agreement.

         14. SUCCESSORS AND ASSIGNS; PARTIES IN INTEREST. This Agreement shall
bind and inure to the benefit of (a) the Company

                                      -29-

<PAGE>

and the Purchaser and (b) their respective successors and assigns. Neither party
may assign his rights and responsibilities hereunder, except that Purchaser may
assign all of its rights and obligations hereunder to a wholly-owned subsidiary
thereof, provided that Purchaser shall remain liable for the Purchase Price
(including the Earn-Out) in the event of any such assignment.

         15. CONFIDENTIALITY.

         15.1 NONDISCLOSURE. Except to the extent expressly authorized by this
Agreement or unless otherwise agreed in writing by the parties, each party
agrees that, from the date of this Agreement and for five (5) years following
the Closing, it shall keep confidential and shall not publish or otherwise
disclose and shall not use for any purpose other than as provided for in this
Agreement any Confidential Information furnished to it by the other party
pursuant to this Agreement. Confidential Information means information not
generally available to the public or otherwise part of the public domain at the
time of its disclosure to the receiving party.

         15.2 AUTHORIZED DISCLOSURE. Each party may disclose Confidential
Information belonging to the other party to the extent such disclosure is
reasonably necessary as required for its public representing or similar
obligations.

         16. MISCELLANEOUS.

         16.1 ENTIRE AGREEMENT. This Agreement (as amended from time to time)
and the other writings referred to herein or delivered pursuant hereto which
form a part hereof contain the entire Agreement among the parties with respect
to the subject matter hereof and supersede all prior and contemporaneous
arrangements or understandings with respect thereto.

         16.2 NOTICES. All notices, requests, consents, payments, statements,
reports and other communications given to or made upon any party hereto in
connection with this Agreement shall be in writing and made by any means by
which delivery may be verified, addressed to the Purchaser or the Company, as
applicable, at the address set forth below or such other address as may
hereafter be designated in writing by the addressee to the addressor listing all
parties. All notices and other communications shall be effective upon delivery.

                           (i)      If to the Purchaser, to:
                                    Network Computing Devices, Inc.
                                    350 N. Bernardo Ave.

                                      -30-

<PAGE>

                                    Mountain View, CA 94043
                                    Attn: Greg Wood, VP Finance
                                    Fax No: (650) 691-2754

                                            with copies to:

                                    Network Computing Devices, Inc.
                                    350 North Bernardo Avenue
                                    Mountain View, CA 94043
                                    Attn: General Counsel; and

                                    D. David Cohen, Esq.
                                    Attorney at Law
                                    Jericho Atrium
                                    Suite 133
                                    500 North Broadway
                                    Jericho, New York 11753
                                    Fax No.: (516) 933-8454

                           (ii)     If to the Company, to:

                                    Multiplicity, L.L.C.
                                    9000 Keystone Crossing
                                    Suite 900
                                    Indianapolis, IN 46240
                                    Attn: Steve McNear

                                    with a copy to:

                                    John Sharpe, Esq.
                                    McNamar, Fearnow & McSharar
                                    111 Monument Circle, Ste. 4500
                                    Indianapolis, IN 46204-5145
                                    Fax No.: (317) 630-4501

         16.3 CHANGES. The terms and provisions of this Agreement may not be
modified or amended, or any of the provisions hereof waived, temporarily or
permanently, except pursuant to the written consent of the affected party.

         16.4 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, and each such counterpart hereof shall be deemed to be an original
instrument, but all such counterparts together shall constitute but one
agreement.

         16.5 HEADINGS. The headings of the sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed to be a part
of this Agreement.

                                      -31-

<PAGE>

         16.6 GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the laws of the State of California, without regard to
conflict of laws.

         16.7 SEVERABILITY. Any provision of this Agreement that is prohibited
or unenforceable in any jurisdiction shall be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction.

         16.8 JURISDICTION/VENUE/ATTORNEYS FEES. The parties hereto agree that
any suit, action or proceeding instituted against one or more of them with
respect to this Agreement (including any schedules hereto) shall be brought in
the federal court in and for the Northern District of California. The parties
hereto, by the execution and delivery of this Agreement, irrevocably waive any
obligation or any right of immunity on the ground of venue, the convenience of
the forum or the jurisdiction of such courts, or from the execution of judgments
resulting therefrom, and the parties hereto irrevocably accept and submit to the
jurisdiction of the aforesaid courts in any suit, action or proceeding and
consent to the service of process by certified mail at the address set forth
herein. In the event that any action is instituted in connection with any
controversy arising out of this Agreement, then the prevailing party shall be
entitled to recover, in addition to costs, such sum as the court may adjudge
reasonable as attorneys' fees in such action and on any appeal from any judgment
or decree entered therein.

         16.9 FURTHER ASSURANCES. The parties hereto shall, subsequent to the
date hereof, execute and deliver such further documentation, and take such
further action, in each case without cost to the other party, as shall be
reasonably requested by such other party hereto to further evidence and perfect
the completion of the transactions contemplated hereby.

         16.10 PRESERVATION OF RECORDS. To the extent received by the Purchaser,
the Purchaser shall preserve for a period of at least three (3) years after the
Closing Date all original documents evidencing any contracts and commitments
transferred to it by the Company, and all other original books, records, files,
papers, records and other data received by the Purchaser from the Company, in a
usual, regular and ordinary manner consistent with the past practices of the
Purchaser. The Purchaser shall, subject to such reasonable limitations as may be
necessary to protect the Purchaser's proprietary information, at the Company's
sole expense

                                      -32-

<PAGE>

and on reasonable prior notice to the Purchaser, (i) afford to the Company and
its counsel, accountants, consultants and other representatives reasonable
access during normal business hours to examine, inspect, and copy any books,
records and original documents of the Company to the extent necessary for the
Seller to comply with or to respond to any audit, investigation, or other
governmental investigation or inquiry; and (ii) cooperate with the reasonable
requests of the Company with respect to the use of such documents transferred
hereunder for such purposes.

         17. LOAN. The Loan will immediately become due and payable upon the
sooner of (i) the closing of the transactions contemplated under this Purchase
Agreement, or (ii) March 31, 2000; but upon Closing of this Purchase Agreement
the Loan amount shall be forgiven as part of the Base Price.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed on their behalf as of the date first set forth above.

                                 MULTIPLICITY, L.L.C.

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

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

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

                                 NETWORK COMPUTING DEVICES, INC.

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

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

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

                                      -33-<PAGE>

                                                                   EXHIBIT 10.50

                      HITACHI GLOBAL PROCUREMENT AGREEMENT

This Hitachi Global Procurement Agreement ("Agreement") made and entered into as
of January 28th, 2000 by and between Network Computing Devices, Inc., a Delaware
corporation, having its principal place of business at 350 North Bernardo Avenue
Mountain View, California 94043 U.S.A. ("NCD"), and Hitachi, Ltd, a corporation
of Japan, through its PC Division, having a principal place of business at 6,
Kanda-Surugadai 4-chome, Chiyoda-ku, Tokyo, 101 Japan ("Hitachi").

                                   WITNESSETH:

WHEREAS, Hitachi is a global computer company which develops, manufactures, and
markets certain computer products and other products related thereto;

WHEREAS, NCD is a manufacturer and distributor of thin client terminals and
related software products, which includes but is not limited to NCD's ThinSTAR
Windows-based Terminal; and

WHEREAS, Hitachi wishes to procure from NCD and NCD wishes to sell a Hitachi
logo version of its ThinSTAR Windows-based Terminals and related software
products to Hitachi .

NOW, THEREFORE, in consideration of the mutual promises and covenants
hereinafter set forth, the parties agree as follows:

1     DEFINITIONS

       1.1    "Desktop Software" shall mean ThinSTAR Management System (TMS)
              software developed by NCD for the management of the Products.

       1.2    "Documentation" shall mean all information necessary to install,
              diagnose and repair, and maintain the Product, such as user,
              operator, service and systems administrator manuals; technical
              bulletins, engineering change orders, software Updates, and
              bulletin board access, web site access; and other relevant
              materials.

       1.3    "Fixes" shall mean bug fixes, critical patches, modified
              documentation or other changes intended to correct
              feature/function deficiencies in the Software. NCD hereby grants
              to Hitachi a non-exclusive, royalty free worldwide license to
              distribute new Fixes to its customers, including distribution
              through the World Wide Web if available.

<PAGE>

       1.4    "Hitachi" shall mean Hitachi, Ltd., and include its subsidiaries
              and affiliates in which 50% or more of the stock is directly or
              indirectly controlled by Hitachi, Ltd.

       1.5    "Product(s)" shall mean the Hitachi logo version of NCD's ThinSTAR
              Windows-based Terminals ("Hardware") and related Software.
              Product(s) as more fully set forth in Exhibit A attached hereto.
              Exhibit A may be revised from time to time by mutual agreement of
              the parties to include and add new Products to the list of Exhibit
              A

       1.6    "Purchase Specifications" shall mean the specifications set forth
              on Exhibit A attached hereto. Exhibit A may be revised from time
              to time by mutual agreement of the parties to modify the
              specifications.

       1.7    "ROM Software" shall mean the operating system software for
              ThinSTAR Windows-based Terminals in object code form residing in
              the hardware's flash memory. In addition, NCD will deliver the
              operating system software on a CD to be used by Hitachi for
              recovery purposes only.

       1.8    "Software" shall refer to the Desktop Software and the ROM
              Software collectively.

       1.9    "Update" shall mean a release made generally available from NCD
              that provides a fix to the Software and typically does not contain
              new functionality. Hitachi will not knowingly provide the new
              Updates to its Customers who have not licensed the corresponding
              Product. Such Updates will be identified through a change in the
              number to the right of the second decimal (e.g. X.YZ), where Z is
              the Update number.

       1.10   "Upgrade" shall mean a change to the Software that provides minor
              functionality enhancements or improvements that may also address
              customer identified problems. Hitachi will not knowingly provide
              the new Upgrade to its Customers who have not licensed the
              corresponding Product. Such Upgrades will be identified through a
              change in the number to the right of the first decimal (e.g. X.YZ)
              where Y is the Software Upgrade.

       1.11   "Version Release" shall mean a release that changes Software
              functionality. Such releases will be reflected through a change in
              the digit to the left of the decimal point (e.g. X.YZ) where X is
              the Version Release number. Hitachi will not knowingly provide the
              new version to its Customers who have not licensed the
              corresponding Product.

2     PURCHASE AND SALE

      During the term of this Agreement, NCD shall manufacture and supply the
      Products for Hitachi and Hitachi agrees to purchase such Products from NCD
      in accordance

<PAGE>

      with the terms and conditions of this Agreement. Hitachi is entitled to
      distribute and market the Products worldwide subject to the terms of this
      Agreement.

<PAGE>

3      ORDERING PROCEDURE

       3.1    Hitachi shall place orders by written purchase order ("Order"),
              subject to NCD's acceptance by fax. Orders must be in minimum
              quantities as specified in Exhibit A hereto. Orders may be placed
              by fax or mail addressed to NCD at the following address:

                  Network Computing Devices, Inc.
                  350 N. Bernardo Avenue
                  Mountain View, California  94043
                  USA
                  Attn: Sales Order Administration

                  Fax No. 650-694-4541

              Orders are pursuant to the terms and conditions stated in this
              SECTION 3 and SECTION 5 below, using Hitachi 's standard purchase
              order form which shall indicate:

                     (i)    Order Numbers;

                     (ii)   Description (including product specification number)
                            and Quantity of Products to be ordered; Requested
                            delivery dates;

                     (iii)  Destination; and

                     (iv)   Unit Prices and Total Price of the Products to be
                            ordered.

       3.2    NCD shall accept or reject the Order placed by Hitachi by signing
              and faxing to Hitachi a copy of the Order within FIVE (5) BUSINESS
              DAYS after its receipt of the Order. If NCD fails to deliver the
              written notice of rejection of the Order to Hitachi within THE
              SAID FIVE (5) BUSINESS DAY period, such Order shall be deemed as
              accepted by NCD on the last day of SUCH FIVE (5) BUSINESS DAY
              PERIOD.

       3.3    NCD shall use its best effort to accept Orders placed by Hitachi.
              However, if NCD has reason not to accept an Order, the parties
              shall, in good faith, discuss and seek a solution.

       3.4    Lead Time: Average lead time for Orders shall be four (4) weeks,
              however the lead time for the first Order shall be six (6) weeks.
              Lead Time starts when an order is accepted by NCD and runs until
              the delivery of the Products so ordered according to the delivery
              terms in section 6 of this Agreement.

       3.5    Orders will be governed solely by the terms and conditions of this
              Agreement, and any term or condition set forth in an Order,
              preprinted or otherwise, which is not expressly allowed by this
              Agreement or which is in addition to or conflicts with the terms
              and conditions of this Agreement, shall have no force and effect.

4      CANCELLATION

       4.1    Unless expressly provided in this Agreement or otherwise agreed
              upon by the parties, the Orders placed by Hitachi and accepted by
              NCD may not be

<PAGE>

              canceled by NCD.

       4.2    Notwithstanding the above, if NCD fails to deliver the Products
              within thirty (30) days after the delivery date specified in the
              relevant Order, Hitachi shall be entitled to cancel the Order.

       4.3    Hitachi shall have the right, without any liability or penalty, to
              notify NCD to delay the ship date of any shipment for a period not
              to exceed NINETY (90) DAYS from the ship date set forth in Orders
              provided that written notice is given to NCD not later than
              FIFTEEN (15) DAYS prior to the delivery date set forth in Orders.

       4.4    Hitachi shall have the right, without liability or penalty, to
              cancel any Order or any part thereof provided that notice of
              cancellation is given to NCD not less than TWENTY FIVE (25) DAYS
              prior to the delivery date set forth in Orders.

5      FORECAST AND ORDERING FLEXIBILITY

       On or about the 10th business day of each month, Hitachi shall provide
       NCD with a rolling SIX (6) MONTH forecast for Products to be delivered by
       NCD to Hitachi each month covering the SIX (6) MONTH period following the
       month on which SUCH forecast is provided. SUCH MONTHLY FORECAST SHALL BE
       NON-BINDING AND SHALL NOT BE DEEMED AS A FIRM ORDER UNLESS THE RELEVANT
       ORDERS HAVE BEEN PLACED BY HITACHI AND ACCEPTED BY NCD IN ACCORDANCE WITH
       SECTION 3 OF THIS AGREEMENT. Hitachi, however, will use its best efforts
       to forecast accurately.

6      SHIPPING, DELIVERY AND PAYMENT

       6.1    All Products shall be delivered by NCD to Hitachi on or before,
              but not more than FIVE (5) DAYS prior to, the delivery date set
              forth in the relevant Order.

       6.2    All shipments of the Products shall be FOB point of origin in
              accordance with INCOTERMS 1990, unless otherwise agreed upon
              between the parties, and title and risk of loss shall pass from
              NCD to Hitachi simultaneously with the passing of risk of loss
              pursuant to INCOTERMS 1990: INCOTERMS FOB Air Shipment FCA

       6.3    Unless otherwise agreed to by the parties, NCD shall ship
              quantities as specified on the relevant Order. All Products shall
              be shipped in accordance with instructions made from time to time
              by Hitachi and in a manner which follows good international
              commercial practice and is adequate to insure safe arrival.

       6.4    NCD shall attach to all shipments a packaging list clearly
              stating:

                  (i)      Hitachi 's Order Number;
                  (ii)     Quantity shipped;
                  (iii)    Airway Bill and other documents needed by Hitachi to
                           substantiate payment due to NCD or freight carrier;
                           and

<PAGE>

                  (iv)     Any other information as designated by Hitachi from
                           time to time; provided that any additional cost to
                           provide such information shall be borne by Hitachi.

       6.5    All marking required by applicable law shall be applied to the
              Products by NCD.

7      ACCEPTANCE PROCEDURE

       7.1    Within ten (10) business days from the date of the receipt of the
              Products, Hitachi shall perform an Appearance Inspection and
              Diagnostic Program and Functionality Test of the Products in
              accordance with the Purchase Specifications, and shall notify NCD
              of the results of such test. In the event that no notification is
              made within the above mentioned period, the Products delivered by
              NCD shall be deemed to be accepted by Hitachi on the last day of
              such period.

       7.2    In case Hitachi finds any quantitative discrepancies of the
              Products during the acceptance test period mentioned above,
              Hitachi shall notify NCD of such finding in writing. In case of
              quantity shortage, NCD shall, at its expense, deliver the Products
              to fill the shortage to Hitachi within TEN (10) BUSINESS DAYS
              after Hitachi 's notification. In case of quantity surplus,
              Hitachi shall, at NCD's expense, promptly return the surplus
              Products to NCD if so requested by NCD.

       7.3    In case Hitachi notifies NCD that qualitative failures or defects
              of the delivered Products are found, NCD shall take all necessary
              countermeasures and deliver new and non-defective Products to
              Hitachi as required in Section 13 herein.

       7.4    Hitachi shall have sixty (60) days from the date on which NCD
              delivers Software, to examine and test the Software to determine
              that such version of the Software, when loaded, will execute as
              part of the Product in accordance with the Purchase Specifications

8     LICENSE

       8.1    All rights not specifically granted to Hitachi under this
              Agreement are reserved by NCD. Except as specifically set forth
              herein, Hitachi has no rights to any Software source code. The
              Software is the proprietary, trade secret and copyrighted property
              of NCD or its suppliers, including Citrix Systems, Inc. and
              Microsoft Corporation.

              Subject to the conditions in this Agreement, NCD grants to Hitachi
              a non-exclusive, non-transferable license to copy the Desktop
              Software and the backup ROM Software pursuant to the terms herein
              and distribute with each unit of Hardware (i) one (1) copy of the
              pre-flashed ROM Software; (ii) one (1) copy of the Desktop
              Software in object code form, including without limitation a copy
              of the localized Hitachi version, on external CD-ROM media; and
              (iii) one (1) copy of the Products' end user Documentation. All
              ownership and title to the

<PAGE>

              Software is retained by NCD or its licensors. Hitachi agrees
              that (i) it will use the Software only as authorized in this
              Agreement by NCD; and (ii) it will not copy or modify the
              Software, except as otherwise provided herein; and (iii) that
              it will not decompile, disassemble, translate or reverse
              engineer the Software; and (iv) Hitachi will retain all
              proprietary and copyright notices of NCD and its suppliers in
              and on the Software and related documents. This license will
              automatically terminate upon Hitachi 's material breach of any
              of the provisions of this Section 8.1 with or without notice
              from NCD; provided, that the end-user's right to use the
              Software shall not be affected by such termination. Upon
              termination, Hitachi must immediately return all Software
              retained by Hitachi, in whatever form, to NCD. In the event of
              a breach of this SECTION 8, NCD or its licensors shall be
              entitled to injunctive relief, in addition to any other
              remedies available, it being acknowledged that legal remedies
              are inadequate. Hitachi's obligations concerning the Software
              will survive any termination of this license.

       8.2    Hitachi shall only distribute the Products pursuant to the
              then-current, applicable, NCD end user license. If a Software
              product is sublicensed by or on behalf of a unit or agency of the
              United States Government, it must be provided to the U.S.
              Government with a RESTRICTED RIGHTS legend as to its use,
              duplication or disclosure under applicable government regulations
              pertaining to trade secrets and commercial computer software
              developed at private expense. Hitachi agrees that it will not
              export or re-export any Software product to any country, person,
              entity or end-user contrary to USA export restrictions.

       8.3    Hitachi acknowledges that NCD's suppliers, including Microsoft
              Corporation, are intended beneficiaries of this Agreement and all
              end user agreements and, as such, are entitled to enforce the
              provisions of this Agreement and end user agreements insofar as
              they concern supplier's respective rights.

       8.4    NCD further grants Hitachi a non-exclusive, non-transferable
              license to distribute Updates, Upgrades, Fixes or Version Releases
              to the ROM Software and the Desktop Software (or modified Desktop
              software) as received from NCD on external media (e.g., CD-ROM) or
              electronically as a replacement to the ROM Software and Desktop
              Software originally distributed with the Hardware, respectively
              (collectively "Replacement or Upgrade Software").

       8.5    The cost of Microsoft or other third party owned Replacement or
              Upgrade Software for ROM Software shall be in accordance with
              Microsoft's or the third party's standard licensing practices. If
              Microsoft or the third party licenses the Replacement or Upgrade
              Software to NCD at no charge, NCD agrees to relicense the
              Replacement or Upgrade Software to Hitachi at no charge. If
              Microsoft or the third party provides NCD with an upgrade or new
              version of the Replacement or Upgrade Software which is royalty
              bearing, NCD will offer Hitachi such upgrade or new version of the
              Replacement or Upgrade Software. If Hitachi elects to license the
              upgrade or new version of the Replacement or Upgrade Software,
              Hitachi agrees to pay NCD any additional royalties associated with
              the cost of such Replacement or Upgrade Software.

<PAGE>

       8.6    The cost of an NCD owned Replacement or Upgrade Software shall be
              in accordance with NCD's standard licensing practices. If NCD
              licenses the Replacement or Upgrade Software to distributors,
              resellers and end users at no charge, NCD agrees to relicense the
              Replacement or Upgrade Software to Hitachi at no charge. If NCD
              provides an upgrade or new version of the Replacement or Upgrade
              Software which is royalty bearing, NCD will offer Hitachi such
              upgrade or new version of the Replacement or Upgrade Software. If
              Hitachi elects to license the upgrade or new version of the
              Replacement or Upgrade Software, Hitachi agrees to pay NCD any
              additional royalties associated with the cost of such Replacement
              or Upgrade Software.

       9      LOCALIZATION

       9.1    Hitachi agrees to localize portions of the initial version of the
              Desktop Software (TMS) into Japanese in exchange for a
              non-exclusive, non-transferable, royalty free license to
              distribute the localized version of the Desktop Software with the
              Product. Localization and pricing of any Version Release, Updates,
              Upgrades or Bug Fix of the Desktop Software shall be as discussed
              and agreed upon by the parties at the appropriate time.

       9.2    NCD grants to Hitachi a non-exclusive, non-transferable license to
              such portions of the source code of the Desktop Software necessary
              to modify such software for the purpose of localization into the
              Japanese language. All ownership and title to the Desktop Software
              and all modification made by Hitachi shall reside with NCD.
              Hitachi agrees that (i) it will use the source code only as
              authorized in this Agreement; and (ii) that it will not decompile,
              disassemble, translate or reverse engineer the Desktop Software,
              except as specifically authorized in this Agreement; and (iii)
              that it will faithfully reproduce all proprietary and copyright
              notices of NCD in and on the Desktop Software and related
              documents. In the event of a breach of this SECTION 9, NCD shall
              be entitled to immediately terminate this Agreement (provided,
              that the end-user's right to use the Software shall not be
              affected by such termination) and seek injunctive relief, in
              addition to any other remedies available, it being acknowledged
              that legal remedies are inadequate. Hitachi's obligations
              concerning the Desktop Software will survive any termination of
              this license.

       9.3    Hitachi will produce two (2) localized versions of the Desktop
              Software, one (1) for the Hitachi logo product and one (1) to be
              used for distribution with NCD's standard ThinSTAR product.
              Hitachi may modify the Desktop Software to be distributed with the
              Hitachi logo Product by turning off certain features, however it
              may not add or remove features without the prior written consent
              of NCD.

       9.4    Hitachi shall submit the localized Desktop Software to NCD for
              review and approval prior to its first distribution of the
              localized Desktop Software. NCD's approval will not be
              unreasonably delayed nor withheld.

       9.5    Hitachi warrants to NCD that the localization will be performed in
              a diligent,

<PAGE>

              workmanlike manner and any items delivered to NCD and/or the
              customer will generally conform to the technical specifications
              for such deliverable.

10     INSPECTION OF NCD'S FACILITY

       In addition to Hitachi 's right to perform acceptance test in accordance
       with SECTION 7 above, Hitachi is entitled to inspect NCD's facility
       and/or perform acceptance tests at any time if Hitachi deems necessary.

11     PRICING

       11.1   The prices of the Products, spare parts, and repair parts shall be
              set forth in Exhibit A attached hereto. Such prices set forth in
              Exhibit A shall be quoted in the United States Dollars on an FOB
              point of origin basis. (The term of FOB used herein shall be
              interpreted in accordance with the provisions of INCOTERMS 1990,
              as amended. Hitachi may, from time to time, request changes in the
              price of the Products, spare parts and repair parts. Upon such
              request both parties shall discuss in good faith to determine new
              price. Exhibit A shall be amended to reflect the agreed new price.

       11.2   It is understood that the prices set forth in Exhibit A are based
              on a general expectation of market conditions for the Products. On
              a quarterly basis or at any time during the term of this
              Agreement, if Hitachi believes that the market conditions are such
              that the prices as provided herein have become inconsistent with
              this expectation, then Hitachi may provide written notice to NCD
              to this effect, whereupon Hitachi and NCD will negotiate in good
              faith with respect to a possible reduction in the prices.

12     PAYMENT

       12.1   Hitachi will make all payments due NCD in U.S. dollars. The
              Procurement and Technical Service Division of Hitachi America,
              Ltd. (HAL) shall act as a disbursement agent of Hitachi in
              accordance with the terms and conditions of this Agreement. NCD
              shall issue its invoices to HAL, and HAL shall make payments to
              NCD in accordance with this Agreement. Invoices shall be delivered
              or addressed to:

                   Hitachi America, Ltd.
                   Procurement and Technical Service Division
                  2000 Sierra Point Parkway, MS:670
                  Brisbane, CA 94005-1819
                  Telephone: 415-244-7400
                  Facsimile: 415-244-7935

       12.2   All Products will be invoiced upon shipment. Payment is due in
              United States Dollars, on or before the last business day of the
              month following shipment.

<PAGE>

       12.3   Payments made by Hitachi to NCD shall be remitted by check to
              NCD's address above or wire transfer into NCD's bank account
              designated below.

                Bank Name  :        Union Bank Of California
                Bank Address:       400 University Avenue Palo Alto, CA, 94310
                Account:Number:     #64889-3649
                Account Name:       Network Computing Devices, Inc.
                Phone Number:

              Hitachi shall bear all taxes imposed on Hitachi in Japan with
              respect to the payment under this Agreement, except for income tax
              imposed on NCD under applicable Japanese Laws. If so required by
              applicable law Hitachi shall deduct the amount of income taxes
              levied by the Government of Japan from payments to be made by
              Hitachi to NCD pursuant to this Agreement, and shall promptly make
              payment of the such taxed amount to the appropriate tax
              authorities of the Government of Japan and shall transmit to NCD
              official tax receipts or other evidence issued by said appropriate
              tax authorities in respect to such taxes deducted and paid by
              Hitachi.

13     WARRANTY

       13.1   NCD represents and warrants to Hitachi, and/or its customers that
              it has all rights or has obtained all rights to manufacture and
              distribute the Product and to make this Agreement, and that the
              Product as manufactured by NCD, to the best of its knowledge does
              not infringe any patent, trademark, copyright, trade secret, or
              any other proprietary rights of any third party or parties.

       13.2   NCD shall warrant and guarantee that the Hardware shall conform to
              the relevant Purchase Specifications and that such Hardware shall
              be free from defects in design, material and workmanship in
              ordinary care, use and maintenance for the period of ninety (90)
              days after the date of shipment. Hitachi may purchase extended
              warranties offered by NCD as set forth in Exhibit A hereto.

              In the event of a Hardware warranty claim Hitachi will contact
              NCD. Once NCD determines that the Hardware is defective and under
              warranty pursuant to the above-mentioned warranty, NCD shall issue
              a return material authorization number ("RMA") to Hitachi. Hitachi
              shall then return the defective Hardware to NCD's Mountain View,
              California facility, and request that NCD perform, at its option,
              any of the following remedial works therefor, at NCD's cost.
              Within TEN (10) BUSINESS DAYS after NCD's receipt of the Hardware,
              NCD will:

                  i) repair the defective portion of the Product;
                  ii) replace the defective portion of the Product;
                  iii).replace the defective Product with a new one; or
                  iv) subject to Hitachi 's prior consent, reimburse costs of
                  repair works incurred by Hitachi in case NCD requests Hitachi
                  to perform such

<PAGE>

                  remedial works by itself.

              Shipping costs from Hitachi to NCD shall be borne by Hitachi for
              Product returned to NCD under this warranty and shipping costs
              from NCD to Hitachi shall be borne by NCD for Product repaired or
              replaced under this warranty by NCD. For all such returned Product
              NCD shall be the importer of record. Hitachi may select its
              carrier of choice, however NCD will require that product be
              cleared through customs using an NCD specified agent

       13.3   NCD will pass through to Hitachi and its resellers the warranties
              accompanying all Software as embodied in the shrink-wrap agreement
              for all Products purchased under this Agreement. The term of such
              warranty shall be the greater of ninety (90) days after delivery
              to the end user or the date specified in the shrink-wrap agreement
              and subject to the terms of this Agreement.

              NCD warrants that the Desktop Software and NCD manufactured
              software will function in accordance with its published
              specifications. Hitachi's exclusive remedy and NCD's sole
              obligation with respect to any Software failing to meet the
              limited warranty as described herein shall be as follows:

              If Hitachi has a Software warranty claim, Hitachi will contact
              NCD. Once NCD determines that the Software is under warranty and
              the Software is not complying to its published specifications and
              documentation, and NCD can duplicate the error, NCD will use all
              reasonable commercial efforts to fix, circumvent or replace the
              Software in a manner to be reasonably determined by NCD.

              In the event of defective media Hitachi will contact NCD. Once NCD
              determines that the Software media is defective and under warranty
              pursuant to the above-mentioned warranty, NCD shall issue a return
              material authorization number ("RMA") to Hitachi. Hitachi shall
              then return the defective Software media to NCD's Mountain View,
              California facility. NCD shall replace the defective Software
              media and return the new Software media to Hitachi, at NCD's
              costs, including transportation costs.

              NCD does not warrant that any item of Software is error-free or
              that its use will be uninterrupted. NCD shall not be obligated to
              remedy any Software defect, which cannot be adequately repeated.

      13.4    Hitachi may make any representations or warranties in addition to
              the representations and warranties found in this Agreement;
              provided that Hitachi shall bear sole responsibility for
              fulfillment of such representations or warranties.

              NCD shall further warrant that the Software media will be free
              from defects

<PAGE>

              in materials for a period of ninety (90) days after the date of
              shipment of the relevant Software .

       13.5   Any out of box failures or DOA Products found to be defective
              within THIRTY (30) DAYS after the date of shipment, or identified
              as failing on initial power up should be replaced via expedited
              delivery by NCD. For any Products returned and replaced under this
              Section 13.5 NCD shall bear all shipping and handling expenses.

       13.6   These warranties shall not apply to defects which have been caused
              by accident, disaster, electrical power or failure, or other
              causes, or to Products which have been tampered with or defaced or
              which have been subjected to unintended or abnormal conditions of
              operation, improper application or installation.

14     REPAIR SERVICE AFTER WARRANTY PERIOD

       14.1   If the Products are found to be defective after the above-
              mentioned warranty period, Hitachi may request NCD to repair the
              defective Product at NCD's then current standard price for repair
              service.

       14.2   Transportation costs incurred by NCD in connection with repair
              service to be performed pursuant to this SECTION 14 shall be
              reimbursed by Hitachi to NCD.

       14.3   Repair costs subsequent to the warranty period are listed in
              Exhibit A attached hereto.

       14.4   NCD shall retain sufficient quantity of any spare parts or
              materials necessary for the repair of the Products as provided
              herein, at least for five (5) years after the discontinuance of
              the relevant Products.

15     DISCONTINUANCE OF PRODUCT

       In case NCD intends to discontinue the supply of certain Products during
       the term of this Agreement, NCD shall endeavor to give Hitachi 180 days
       prior written notice, in any case NCD shall give written notice of at
       least NINETY (90) DAYS ("Last Buy Notice") prior to the intended date of
       discontinuance. Hitachi may, at least THIRTY (30) DAYS prior to the
       intended date of discontinuance informed by Last Buy Notice, place a
       non-cancelable Order ("Last Buy Order") to cover its future requirements,
       and NCD shall accept such Last Buy Order. The quantity and delivery
       schedule of the Products ordered by such Last Buy Order shall be mutually
       agreed between the parties. In no event will the quantity of the Last Buy
       Order exceed the total of Hitachi 's last twelve (12) months of purchases
       of Product.

<PAGE>

16     ENGINEERING CHANGE

       Engineering changes involving form, fit or function of the Products may
       be made only by revising the Purchase Specifications of the relevant
       Products by mutual consents of the parties in writing. Changes made in
       the course of normal maintenance shall not be subject to this Section 16.

17     LIMITATION OF LIABILITY

       17.1   THE WARRANTIES AND REMEDIES EXPRESSLY PROVIDED IN THIS AGREEMENT,
              INCLUDING BUT NOT LIMITED TO SECTION 13, ARE NCD'S ONLY WARRANTIES
              AND REMEDIES AND ARE IN LIEU OF ALL OTHER EXPRESS OR IMPLIED
              WARRANTIES, INCLUDING THE WARRANTIES OF MERCHANTABILITY AND
              FITNESS FOR A PARTICULAR PURPOSE, WHICH WARRANTIES ARE
              SPECIFICALLY DISCLAIMED AND EXCLUDED.

       17.2   NCD AND ITS SUPPLIERS SHALL, IN NO EVENT, BE LIABLE FOR ANY
              INCIDENTAL, CONSEQUENTIAL, INDIRECT, PUNITIVE OR SPECIAL DAMAGES
              (INCLUDING BUT NOT LIMITED TO LOST PROFITS, REVENUE, GOODWILL OR
              LOSS OF USE OR DATA) OR ANY COSTS OF SUBSTITUTE PRODUCT ARISING
              OUT OF, OR RELATED TO THE PRODUCTS, EVEN IF NCD HAD BEEN ADVISED,
              KNOWN OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES OR
              COSTS.

       17.3   EXCEPT FOR NCD'S INDEMNITY OBLIGATION HEREUNDER AND BREACH OF
              CONFIDENTIALITY OBLIGATION, IN NO EVENT SHALL EITHER PARTY BE
              LIABLE FOR ANY CONSEQUENTIAL, SPECIAL, INCIDENTAL, PUNITIVE OR
              INDIRECT DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS
              AGREEMENT.

18     INDEMNITY

       18.1   NCD shall at its expense, indemnify, hold harmless, and defend,
              Hitachi, Hitachi 's subsidiaries and their respective customers,
              from and against any action, claim, liability or damage arising
              out of, in connection with or relating to any claim that the
              Products provided hereunder infringe or misappropriate any patent,
              copyright, trade secret, trademark or other intellectual property
              rights. NCD shall pay all damages, costs and expenses (including
              reasonable attorneys' fees) incurred by Hitachi, Hitachi 's
              subsidiaries and their respective customers, provided that Hitachi
              (i) notifies NCD promptly in writing of the claim, (ii) provides
              NCD with reasonable information and assistance at NCD's expense
              for the defense or settlement of the claim, and (iii) grants NCD
              reasonable control of the defense or settlement of the claim;
              provided that such defense or settlement shall be made through
              attorneys reasonably acceptable to Hitachi.

<PAGE>

       18.2   In the event that Products, are held to constitute an infringement
              or their use is enjoined, NCD shall at its own expense, either (i)
              procure for Hitachi , Hitachi 's subsidiaries and their respective
              customers the royalty-free right to continue distributing or using
              such Products, (ii) replace such Products to Hitachi 's reasonable
              satisfaction with non-infringing products of equivalent quality
              and performance, (iii) modify such Products so that they become
              non-infringing and of equivalent quality and performance.

       18.3   Notwithstanding the foregoing, NCD shall have no liability to
              Hitachi to the extent an infringement or other claim to the extent
              it is based on (i) the use of Products in combination with
              equipment, devices or software other than those intended to be
              used with the Products, (ii) the modification of Products by other
              than NCD or its agents, or by Hitachi in accordance with the
              instruction by NCD, (iii) NCD's compliance with Hitachi 's
              specific suggestion or instruction; provided in each case such
              infringement would not have occurred but for the occurrence of the
              events in (i) to (iii) respectively.

19     CONFIDENTIALITY

       19.1   All confidential information, disclosed by a party ("Disclosing
              Party"), which shall be clearly marked as "Confidential" at the
              time of disclosure, will be safeguarded and kept confidential by
              the other party ("Receiving Party") during the term of this
              Agreement and for three (3) years thereafter. The Disclosing
              Party's confidential information shall be safeguarded by the
              Receiving Party to the same extent that it safeguards its
              confidential materials of similar importance; provided, however,
              that the Receiving Party uses at least reasonable care.

       19.2   Notwithstanding the foregoing, Hitachi may disclose NCD's
              confidential information to Hitachi 's subcontractors and/or
              Hitachi subsidiaries to the extent necessary for their activities
              contemplated under this Agreement; provided, however, that Hitachi
              shall impose the confidentiality obligations substantially similar
              to those provided for in this SECTION 19 on such subcontractors
              and Hitachi subsidiaries.

       19.3   The foregoing confidentiality obligations mentioned above shall
              not apply to:

              i)     information which now or hereafter, through no act or
                     failure to act on the part of the Receiving Party, is or
                     becomes generally known or available;

              ii)    information which is furnished to a third party by the
                     Disclosing Party without confidentiality obligations;

              iii)   information which is furnished to the Receiving Party by a
                     third party without confidentiality obligations,

              iv)    information which is independently developed by the
                     Receiving Party, or

              v)     disclosure as required by law or requested by any
                     governmental agency.

<PAGE>

20     TERM AND TERMINATION

       20.1   This Agreement shall become effective as of the date first above
              written and continue in full force and effect FOR FIVE (5) YEARS.
              Such term shall be automatically renewed for each one (1) year
              period unless either party delivers a written notice to the other
              party WITHIN ONE HUNDRED-TWENTY (120) DAYS prior to the expiration
              of the applicable term indicating such party's intention not to
              renew this Agreement.

       20.2   Either party may terminate this Agreement immediately upon written
              notice to the other party, if at any time any one of the following
              events occurs:

              i)     the other party files voluntary petition in bankruptcy
                     (other than solely for reconstruction;

              ii)    the other party is adjudicated as bankrupt;

              iii)   the other party makes an assignment for the benefit of its
                     creditors; iv) a competent court assumes jurisdiction of
                     the assets of the other party under a bankruptcy or
                     reorganization act;

              v)     a trustee or receiver is appointed by a court for all or
                     substantially all the assets of the other party;

              vi)    transfer to, or acquisition by, a third party of a
                     substantial portion of the business or assets of the other
                     party, if after careful consideration such transfer or
                     acquisition is deemed to be detrimental to such party; or

              vii)   any substantial change in the ownership or majority control
                     of the other party including merger which is, after careful
                     consideration, deemed to be detrimental to such party,
                     unless such other party or such other party's shareholders,
                     has a majority control of the resulting entity or such
                     change in control is the result of a venture capital
                     financing or a public offering of such other party's stock.

       20.3   Either party may terminate this Agreement upon material breach of
              the other party if such material breach is not cured within thirty
              (30) days after the notice by terminating party. Such notice shall
              describe the breach.

       20.4   Upon termination or expiration of this Agreement, Hitachi shall at
              NCD's direction either (i) destroy all units of Software in its
              possession; or (ii) promptly return to NCD all copies of Software,
              all copies of confidential or proprietary information relating to
              the Products, all advertising materials and all other items
              furnished by NCD, other than Products purchased or then-currently
              licensed for authorized use by Hitachi . Upon NCD's request,
              Hitachi agrees to provide written notice to NCD and/or its
              supplier Microsoft Corporation certifying that it has fulfilled
              the requirement of SECTION 22 below. Such certification shall be
              signed by an officer or director of Hitachi.

<PAGE>

21.    PRODUCT CHANGES

       NCD shall not change, modify, improve or enhance the Product unless such
       change, modification, improvement or enhancement is agreed by Hitachi and
       reflected to the Purchase Specification of the relevant Products.

22.    SUPPORT AND MAINTENANCE

       22.1   To the extent available now, and during the life of this
              Agreement, at the request of Hitachi, NCD shall provide the
              following, collectively referred to as "Technical Information," at
              no charge to Hitachi:

              Problem history database -- A regularly updated problem history
              database that includes a description of all changes, enhancements,
              or problem fixes provided by NCD. NCD will provide this database
              in a format agreed to by both parties.

              Documentation will be in an electronic format suitable for both
              reproduction and for publishing on Hitachi's Corporate Intranet,
              and will be updated by new documentation from time-to-time as it
              becomes available at no cost to Hitachi, to the extent such
              Documentation is not subject to any third party encumbrances.
              Documentation currently available will be provided to Hitachi as
              soon as practicable, but not more than thirty (30) days following
              the signing of this Agreement. New documentation will be provided
              to Hitachi within thirty (30) days following its general release
              by NCD.

       22.2   To the extent such Documentation is not subject to any third party
              encumbrances, Hitachi shall have the right to copy, modify and use
              the Documentation provided by NCD for the purpose of providing
              desired manuals, training or support materials, or the like
              concerning the Product, provided that any NCD copyrights therein
              are appropriately safeguarded. Such manuals, training or support
              materials shall be used solely to support the Products.

       22.3   Hitachi shall attempt to resolve Customer problems independently
              using the information provided by NCD. If a greater level of
              technical expertise is required, Hitachi will engage NCD in
              resolving the Customer's problem. Hitachi will remain the
              interface to the customer throughout the problem resolution
              process. Hitachi will assign the problem a unique reference
              number. NCD will use the same reference number when communicating
              with Hitachi. Hitachi will provide NCD with all information
              relevant to the problem, including, if applicable, the method used
              by Hitachi to duplicate the problem on its own systems. Hitachi
              will convey such information to supplier by whatever means both
              parties agree are most expedient. NCD shall make available via
              telephone, individuals sufficiently skilled to assist Hitachi in
              problem resolution. If mutually determined as necessary by both
              parties, NCD's technical

<PAGE>

              representative will be available to provide on-site support at
              Customer's location.

       22.4   Hitachi will provide Levels 1 and 2 support. NCD will provide
              Level 3 support on an as-required basis.

              Level 1 -- Call acceptance and ownership until resolution. Gather
              problem information and determine criticality. Search knowledge
              base and deliver known solutions to customer. Dispatch Hitachi
              Customer Engineer as appropriate. Escalate to Level 2 as required.

              Level 2 -- Respond to Level 1 escalations with a higher level of
              expertise in a specific technology area. Develop and gain customer
              agreement for problem isolation, solution creation and solution
              implementation plan. Provide an existing fix, work-around
              solution, or escalate to NCD for assistance. Co-ordinate NCD's
              performance.

              Level 3 -- Assign resources as reasonably required to resolve
              problem. Work with Hitachi Level 2 support to co-ordinate the
              development and delivery of problem solutions. NCD shall not be
              liable for any Software error caused by any of the following
              events: (i) defects or errors resulting from any attachments,
              modifications, enhancements of the Software made by any person
              other than NCD, unless otherwise approved in writing by NCD; (ii)
              incorrect use of the Software or operator error; (iii) any
              modification of the Software if such modification would result in
              a departure from the Specifications.

       22.5   NCD's point(s) of contact for Technical Support will be provided
              to Hitachi as soon as practicable, but not more than thirty (30)
              days following the signing of this Agreement.

       22.6   NCD's Technical Support as described in this Section 3 shall be
              available to Hitachi (i) for all current Version Releases,
              Upgrades and Updates and (ii) for the immediately two previous
              Version Releases, including all respective Upgrades and Updates.

       22.7   If requested, NCD will provide Hitachi with a report which details
              NCD's performance relative to the response and resolution
              guidelines specified in this Section 22. As a minimum, the report
              will include a complete list of problems escalated to Level 3, the
              time and date each call was received, a brief description of each
              problem, problem status, and if resolved, the date and time of
              closure.

23     NOTICE

       Any notice or report pursuant to this Agreement shall be in writing and
       in English and shall be deemed given if delivered personally, or five (5)
       business days after mailing if sent by registered air mail (or
       internationally recognized express mail such

<PAGE>

       as DHL), postage paid, addressed to the other party at the address set
       forth below or at such other address as designated by the party by
       written notice, or upon receipt if sent by confirmed telex or facsimile.

       For NCD:

                  Network Computing Devices, Inc.
                  350 N. Bernardo Avenue
                  Mountain View, CA  94043
                  Attn.: General Counsel

         For Hitachi :

                  Hitachi, Ltd. PC Division

                  810 Shimoimaizumi

                  Ebina-shi, Kanagawa-ken, 243-0435

                  Attn.: Purchasing Manager

       Either party may change its address for the purpose of this Agreement by
       giving the other party written notice of its new address.

24     NO WAIVER

       The failure of either party to enforce at any time any provision of this
       Agreement will not be construed to be a waiver of any such provision and
       will not affect the validity of this Agreement or any part thereof or the
       right of either party to enforce such provision. No waiver of any breach
       hereof will be construed to be a waiver of any other breach.

25     PUBLICATION

       Neither party shall issue any press release or other announcement of this
       Agreement without the other party's prior written consent, which shall
       not be unreasonably withheld. The parties agree to cooperate on the
       preparation and issuance of appropriate announcements.

26     SURVIVAL

       No termination or expiration of this Agreement shall release any party
       from any liability which at such time has already accrued to the other
       party, or in any way affect the survival of any right, duty or obligation
       of any party originated during the term of this Agreement which is
       contemplated to be performed as of the date of or after such termination
       or expiration including but not limited to Sections 8, 13, 17, 18, 19, 20
       AND 32 of this Agreement .

<PAGE>

27     INDEPENDENT CONTRACTOR

       NCD and Hitachi are independent contractors in the performance of this
       Agreement, each acting for its own account and at its own risk. Neither
       party is an agent or representative of the other party, and neither party
       hereto has the authority, nor shall represent itself as having the
       authority, to make commitments or incur obligations on behalf of the
       other party.

28     FORCE MAJEURE

       In any event that any force majeure, including but not limited to
       disasters, fire, war, civil commotion, strikes, governmental regulations
       or other occurrences beyond the reasonable control of either party, shall
       occur and make it impracticable for either party to perform its
       obligations set forth in this Agreement, the provisions of this Agreement
       related thereto shall be suspended, but only as long as and so far as the
       impediment exists. In the case of such suspension, the parties hereto
       shall use their best efforts to overcome the cause and effect of such
       suspension.

29     NON-ASSIGNMENT

       Neither this Agreement nor any of the rights and obligations created
       herein may be assigned, delegated, pledged or otherwise encumbered or
       disposed of, in whole or in part, by either party to a third party
       without prior written consent of the other party. Any attempt to do so
       without the other's consent shall be null and void.

30     ENTIRE AGREEMENT

       This Agreement, including Exhibits attached hereto, shall constitute the
       entire agreement between the parties with respect to the subject matter
       hereof and supersede all prior proposals, negotiations, agreements,
       representations and other communications, written or oral, expressed or
       implied, between the parties with respect to the subject matter hereof.
       No modification, renewal, extension or waiver of this Agreement or any of
       its provisions shall be binding unless made in writing by duly authorized
       representatives of both parties.

31     SEVERABILITY

       If any term, provision, covenant or condition of this Agreement or the
       application thereof is held by a court of competent jurisdiction to be
       invalid, void, unenforceable, or contrary to law, then the validity of
       the remaining provisions of this Agreement shall remain in full force and
       effect and shall in no way be affected, impaired, or invalidated. In such
       instance, the parties shall use their best efforts to replace the
       invalid, void or unenforceable provision(s), or provisions being contrary
       to law, with legally valid or enforceable provisions approximating to the
       extent possible the original intent of the parties hereto.

<PAGE>

32     GOVERNING LAW

       This Agreement shall be, in all respects, governed by and construed in
       accordance with the laws of California, U.S.A. , excluding its conflict
       of law rules. The parties agree that the United Nations Convention on
       Contracts for the International Sale of Goods shall be applicable to the
       transactions contemplated by this Agreement. Each party agrees to resolve
       any dispute, controversy or claim arising out of or related to this
       Agreement, or the interpretation, breach, termination or validity of this
       Agreement through an arbitration proceeding. Any arbitration shall be
       conducted in English, and if the defending party is NCD, in San
       Francisco, in accordance with the then current UNCITRAL Arbitration
       Rules, and if the defending party is Hitachi , in Tokyo, in accordance
       with the then current Commercial Arbitration Rule of the Japan Commercial
       Arbitration Association. The award rendered by the arbitrator(s) shall
       include costs of the arbitration, reasonable attorneys' fees and
       reasonable costs for experts and other witnesses. Judgment on the award
       may be entered in any court having jurisdiction. In no event shall the
       arbitrator(s) be empowered to grant an award for consequential, special,
       incidental, punitive or indirect damages arising out of or in connection
       with this Agreement pursuant to Section 17 above.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and delivered as of the day and year first above written by their duly
authorized representatives.

HITACHI , LTD.                          NETWORK COMPUTING DEVICES, INC.

   /s/                                     /s/
----------------------------------      ---------------------------------------
Signature                                            Signature

Hiroshi Hirosawa / Dept. Manager    John DeSantis, Sr. V.P. Sales & Marketing
---------------------------------   -------------------------------------------
Typed Name and Title                        Typed Name and Title

Date:    Jan 28 `00                                  Date:    Jan 30, 2000
     ----------------------------                         -----------------

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