Document:

EXHIBIT 10.12
                              MICROSOFT CORPORATION

                                       AND

                              PROGINET CORPORATION

                            ASSET PURCHASE AGREEMENT

                          Dated as of December 17, 1996

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                                TABLE OF CONTENTS
                                                                            Page
                                                                            ----
RECITALS                                                                       1

ARTICLE I DEFINITIONS                                                          1
1.1 Assumed Obligations                                                        1
1.2 Closing                                                                    1
1.3 Closing Date                                                               1
1.4 Company Affiliate                                                          2
1.5 Confidential Information                                                   2
1.6 Follow-On Transition Period                                                2
1.7 Initial Transition Period                                                  2
1.8 Intellectual Property Rights                                               2
1.9 MVS Platform                                                               2
1.1O Object Code                                                               3
1.11 Other Platforms                                                           3
1.12 Product Revenues                                                          3
1.13 Source Code                                                               3
1.14 Transaction Period                                                        3
1.15 Windows Components of the Acquired Assets                                 3
1.16 Windows Platforms                                                         3
1.17 Other Defined Terms                                                       3

ARTICLE II ACQUISITION AND DISPOSITION OF ACQUIRED ASSETS                      3
2.1 Acquired Assets                                                            3
2.1.1 Other Assets                                                             4
2.1.2 Other Assets                                                             4
2.1.3 Other Assets                                                             4
2.2 Assumption of Obligations                                                  4

ARTICLE III PURCHASE PRICE AND PAYMENT                                         4
3.1 Minimum Purchase Price                                                     4
3.3 Additional Share Issuance                                                  5
3.3 Additional Contingent Payments by Company                                  5
3.4 Restriction on Transfer                                                    6
3.5 Fractional Shares                                                          6

ARTICLE IV CLOSING                                                             6
4.1 Closing and Delivery of Acquired Assets                                    6
4.2 Method of Acquisition                                                      6
4.2.1 Conveyance of Acquired Assets                                            6
4.2.2 Assumption of Obligations                                                7

ARTICLE V REPRESENTATIONS AND WARRANTIES                                       7
5.1 Representations and Warranties of the Company                              7
5.1.1 Authority                                                                7
5.1.2 Adequate Shares                                                          7
5.1.3 Due Authorization                                                        7
5.1.4 Reliance                                                                 7
5.2 Representations and Warranties of Microsoft                                7

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5.2.1 Authority                                                                7
5.2.2 Ownership of Acquired Assets                                             7
5.2.3 Reliance                                                                 8

ARTICLE VI ADDITIONAL AGREEMENTS                                               8
6.1 Registration Rights                                                        8
6.2 Board Representation                                                      11
6.3 BackOffice License Rights                                                 11
6.4 Expenses                                                                  12
6.5 Additional Agreements                                                     12
6.7 Public Announcements                                                      12
6.8 Taxes                                                                     12
6.9 Bulk Sales                                                                12

ARTICLE VII CONDITIONS PRECEDENT                                              13
7.1 Conditions to Company's Obligations                                       13
7.1.1 Representations and Warranties                                          13
7.1.2 Delivery of Software Code                                               13
7.1.3 Conveyance of Acquired Assets                                           13
7.1.4 Investment Agreement                                                    13
7.1.5 Opinion of Counsel                                                      13
7.2 Conditions to Microsoft's Obligations                                     14
7.2.1 Representations and Warranties                                          14
7.2.2 Delivery of Consideration                                               14
7.2.3 Assumption of Obligations                                               14
7.2.4 Opinion of Counsel                                                      14
7.3 Effectiveness                                                             14

ARTICLE VIII CONDITIONS SUBSEQUENT                                            14
8.1 Product Support Plan                                                      15
8.2 Payments Related to Product Support                                       15
8.3 Customer Relationships                                                    15
8.4 Company Upgrades                                                          15
8.5 Marketing Efforts                                                         16

ARTICLE IX INDEMNIFICATION                                                    16
9.1 Indemnification by Company                                                16
9.2 Indemnification by Microsoft                                              18
9.3 Limitations of Liability                                                  18

ARTICLE X MISCELLANEOUS                                                       19
10.1 Notices                                                                  19
10.2 Dispute_Resolution                                                       19
10.3 Assignment                                                               19
10.4 Construction                                                             20
10.5 Entire Agreement                                                         20

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                            ASSET PURCHASE AGREEMENT

This ASSET PURCHASE  AGREEMENT (the  "Agreement") is entered into as of December
17,  1996  (the  "Agreement  Date")  by and  between  MICROSOFT  CORPORATION,  a
Washington   corporation  located  at  One  Microsoft  Way,  Redmond,  WA  98052
("Microsoft") and PROGINET  CORPORATION,  A Delaware  corporation located at 200
Garden City Plaza, Garden City, New York 11530 ("Company").

                                    RECITALS

A. COMPANY DESIRES TO ACQUIRE CERTAIN ASSETS OF MICROSOFT (THE "Acquired ASSETS"
AS DEFINED IN SECTION 2.1) AND TO ASSUME CERTAIN  CONTRACTUAL  OBLIGATIONS  (THE
"Assumed,  Obligations" AS DEFINED IN SECTION 1.1), ALL ON THE TERMS AND SUBJECT
TO THE CONDITIONS HEREINAFTER SET FORTH.
7.2.2
A.  MICROSOFT  DESIRES TO SELL SUCH  ASSETS TO  COMPANY,  AND TO  TRANSFER  SUCH
OBLIGATIONS TO COMPANY,  ON THE TERMS AND SUBJECT TO THE CONDITIONS  HEREINAFTER
SET FORTH.
7.2.3
A. THE BOARD OF DIRECTORS OF COMPANY HAS APPROVED THE TERMS OF THIS AGREEMENT
AND THE TRANSACTIONS CONTEMPLATED HEREBY.
7.2.4

7.2.5   D.  THE   PARTIES  FURTHER  DESIRE TO  COOPERATE  IN CERTAIN  MARKETING
ACTIVITIES  CONCERNING  THE  ACQUIRED ASSETS, AS DESCRIBED IN EXHIBIT C TO THIS
AGREEMENT (THE "Joint Sales and Support Plan").

         INTENDING TO BE LEGALLY BOUND, and in consideration of the promises and
the mutual  representations,  warranties,  covenants  and  agreements  contained
herein, Microsoft and Company hereby agrees as follows:

                                    ARTICLE I
                                   DEFINITIONS

7.2.6  1.1  "Assumed   Obligations"   MEANS  ALL  AGREEMENTS,   OBLIGATIONS  AND
LIABILITIES WHICH COMPANY AGREES TO ASSUME UNDER THE TERMS OF THIS AGREEMENT, AS
LISTED IN EXHIBIT B AND FURTHER SPECIFIED IN SECTION 2.2 BELOW.

1.2  "CLOSING"  means  the  closing  of the  transaction  contemplated  by  this
Agreement, as such closing is further described in Section 4.1 below.

1.3 "CLOSING DATE" means the date on which the Closing  occurs,  as such date is
further described in Section 4.1 below.

1.4 "COMPANY  AFFILIATE"  means any entity  directly or indirectly  controlling,
controlled  by,  or under  common  control  with  Company,  where  "controlling,
controlling,  and under common control with" refers to the possession,  directly
or  indirectly,  of the power to direct or cause the direction of the management
and policies of an entity,  whether  through the ownership of voting shares,  by
contract, or otherwise. In the case of an entity that is a partnership,  limited
liability  company,  corporation,  or  similar  entity  and that  has  partners,
members,  or  shareholders  with  equal  ownership  interests  or equal  control
interests, by contract or otherwise,  each such partner,  member, or shareholder
shall be deemed to possess, directly or indirectly, the power to direct or cause
the direction of the management and policies of that entity.

1.5  "CONFIDENTIAL  INFORMATION"  means any  trade  secrets  relating  to either
party's product plans,  designs,  costs, prices and names,  finances,  marketing
plans,  business  opportunities,  personnel,  research  development or know-how,
including   without   limitation  the  Source  Code  of  the  Acquired   Assets.
Confidential  Information shall not include  information that: (i) is or becomes
generally known or available by publication, commercial use or otherwise through
no fault of the receiving party;  (ii) is known and has

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been reduced to tangible form by the  receiving  party at the time of disclosure
and is not subject to restriction;  (iii) is independently  developed or learned
by the receiving  party;  (iv) is lawfully  obtained from a third party that has
the  right to make  such  disclosure;  (v) is made  generally  available  by the
disclosing  party without  restriction on  disclosure;  (vi) is disclosed to the
extent required by judicial or administrative process when the party making such
disclosure  believes in good faith and after  consultation  with the other party
that it is legally required to do so; or (vii) is contained in the documentation
components of the Acquired Assets.

1.6  "FOLLOW-ON   TRANSITION   PERIOD"  means  the  fifteen  (15)  month  period
immediately  following the Initial Transition Period;  i.e., beginning as of the
fourth (4th) month after the Closing Date and ending as of the eighteenth (I8th)
month after the Effective Date.

1.7 "INITIAL  TRANSITION  PERIOD"  means the three (3) month period  immediately
following the Closing Date.

1.8  "INTELLECTUAL  PROPERTY  RIGHTS"  means all  intellectual  property  rights
arising under statutory or common law, and whether or not perfected,  including,
without limitation,  all (a) patents and patent applications owned or licensable
by a party hereto,  (b) rights  associated  with works of authorship,  including
copyrights,  copyright  applications,  mask work rights, mask work applications,
and mask work  registrations,  (c) rights  relating to the  protection  of trade
secrets and  confidential  information,  (d) any rights  analogous  to those set
forth  in  this  Section  1.7 and  any  other  proprietary  rights  relating  to
intangible property, and (e) divisions,  continuations,  renewals,  reissues and
extensions  of the  foregoing  (as and to the extent  applicable)  now existing,
hereafter filed, issued or acquired.

1.9 "MVS  PLATFORM"  means the IBM mainframe  operating  system known as "WS" or
"OS/390," and any direct successors thereto.

1.10 "OBJECT  CODE" means  machine-executable  computer  software code in binary
form.

         1.11 "OTHER  PLATFORMS"  means any and all computer  operating  systems
         other than the MVS  Platform or the Windows  Platforms  on which any of
         the Acquired Assets operate as of the Closing Date.

         7.2.7 1.12 "Product Revenues" MEANS GROSS REVENUES EARNED BY COMPANY IN
         THE FORM OF LICENSE FEES, ROYALTIES, MAINTENANCE FEES, AND SUPPORT FEES
         (INCLUDING BOTH PERIODIC MAINTENANCE AND/OR SUPPORT CHARGES AND CHARGES
         FOR ERROR  CORRECTION  SERVICES  CHARGED  ON A  PER-INCIDENT  OR HOURLY
         BASIS) WITH  RESPECT TO THE  ACQUIRED  ASSETS.  PRODUCT  REVENUES  ALSO
         INCLUDE GROSS REVENUES  EARNED BY ANY COMPANY  AFFILIATE IN THE FORM OF
         LICENSE  FEES,  ROYALTIES,  MAINTENANCE  FEES,  AND  SUPPORT  FEES WITH
         RESPECT  TO THE  ACQUIRED  ASSETS,  LESS ANY FEES PAID BY SUCH  COMPANY
         AFFILIATE TO COMPANY IN  CONSIDERATION  OF SUCH  EXERCISES OF RIGHTS IN
         ACQUIRED  ASSETS.  NOTWITHSTANDING  ANYTHING  TO THE  CONTRARY  HEREIN,
         PRODUCT  REVENUES SHALL NOT INCLUDE ANY REVENUES EARNED BY COMPANY OR A
         COMPANY  AFFILIATE IN  CONSIDERATION OF THE SIX HUNDRED AND EIGHTY-FOUR
         THOUSAND  SIX HUNDRED AND FOUR  DOLLARS  (US$684,604.00)  IN  MICROSOFT
         OBLIGATIONS ASSUMED BY COMPANY PURSUANT TO SECTION 2 OF THIS AGREEMENT

         1.13 "SOURCE  CODE" means  computer  software  code in  human-readable,
         high-level language form which, when compiled or assembled, becomes the
         executable Object Code of a software program. Source Code shall include
         all developer comments concerning the relevant software code.

         7.2.8 1.14  "Transition  Period"  MEANS THE EIGHTEEN  (18) MONTH PERIOD
         IMMEDIATELY  FOLLOWING  THE  CLOSING  DATE,  AND  CONSISTS  OF BOTH THE
         INITIAL TRANSITION PERIOD AND THE FOLLOW-ON TRANSITION PERIOD.

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         1.15 "WINDOWS  COMPONENTS OF THE ACQUIRED  ASSETS" means those portions
         of the Acquired Assets which operate on Windows Platforms.

         7.2.9 1.16 "Windows  Platforms" MEANS MICROSOFT'S  WINDOWS 3.X, WINDOWS
         95, WINDOWS NT WORKSTATION,  AND WINDOWS NT SERVER  OPERATING  SYSTEMS,
         AND ANY DIRECT SUCCESSORS THERETO.

         1.17 OTHER DEFINED TERMS. All other initially  capitalized terms shall
         have the meanings assigned to them in this Agreement.

                                   ARTICLE II

                 ACQUISITION AND DISPOSITION OF ACQUIRED ASSETS

7.2.10  2.1  Acquired  Assets.  SUBJECT  TO THE  TERMS  AND  CONDITIONS  OF THIS
AGREEMENT,  AT THE CLOSING (AS DEFINED  BELOW),  MICROSOFT  SHALL SELL,  CONVEY,
TRANSFER, ASSIGN AND DELIVER TO COMPANY, AND COMPANY SHALL PURCHASE, ACQUIRE AND
ACCEPT FROM MICROSOFT, THE FOLLOWING ASSETS:

         2.1.1  Netwise  Assets.  ALL  SOFTWARE,   DOCUMENTATION,   TEST  CASES,
         DEVELOPMENT   HISTORY   DATABASE,   TRAINING   MATERIALS   AND  RELATED
         PROPRIETARY  MATERIALS  ACQUIRED BY MICROSOFT  FROM NETWISE,  INC. (THE
         "NETWISE  ASSETS") UNDER AN ASSET PURCHASE  AGREEMENT DATED OCTOBER 27,
         1995 (THE "NETWISE ASSET PURCHASE AGREEMENT").
         7.2.11
         2.1.2    Netwise Assets Further Developed or Modified by Microsoft. THE
                  ACQUIRED ASSETS ALSO INCLUDE ALL ERROR CORRECTIONS AND UPDATES
                  TO THE NETWISE ASSETS,  DOCUMENTATION AND MATERIALS RELATED TO
                  THE NETWISE ASSETS DEVELOPED BY MICROSOFT  BETWEEN OCTOBER 27,
                  1995 AND THE CLOSING DATE OF THIS AGREEMENT.
7.2.12
         2.1.3    Other  Assets.   "Other   Assets"  WHICH  SHALL  MEAN  ALL  OF
                  MICROSOFT'S INTANGIBLE ASSETS ACQUIRED PURSUANT TO THE NETWISE
                  ASSET PURCHASE AGREEMENT,  INCLUDING  GOODWILL,  GOING CONCERN
                  VALUE,  CUSTOMER  LISTS,  CONTRACTS,  AGREEMENTS,  LICENSES OR
                  LICENSE AGREEMENTS, COMMITMENTS,  WARRANTIES, CLAIMS AND OTHER
                  CHOATE AND INCHOATE RIGHTS, BUT EXCLUDING WITHOUT  LIMITATION,
                  THE RETAINED OBLIGATIONS (AS DEFINED BELOW), CASH,  MARKETABLE
                  SECURITIES,  RECEIVABLES  AND RIGHTS  RELATING TO  CONTRACTUAL
                  OBLIGATIONS (OTHER THAN THE
                  ASSUMED OBLIGATIONS (AS DEFINED BELOW)).

         All of the  above  shall  be  referred  to as  the  "ACQUIRED  ASSETS";
         provided,  however,  that  notwithstanding  anything  to  the  contrary
         hereinabove,  the Acquired Assets do not include any leases,  equipment
         maintenance  agreements  or  other  contractual  obligations  to  third
         parties assumed by Microsoft under the Netwise Asset Purchase Agreement
         (the "Retained Obligations").

         7.2.13 2.2  Assumption of  Obligations.  AT THE CLOSING,  COMPANY SHALL
         ASSUME ONLY THOSE WRITTEN CONTRACTS, WRITTEN AGREEMENTS, WRITTEN LEASES
         FOR PERSONAL PROPERTY AND WRITTEN  COMMITMENTS OF MICROSOFT  PERTAINING
         TO THE ACQUIRED ASSETS AS OF THE CLOSING WHICH ARE SPECIFICALLY  LISTED
         ON EXHIBIT B (THE  "Assumed  Obligations"),  WHICH SHALL  THEREAFTER BE
         PERFORMED  BY COMPANY  WHEN DUE IN  ACCORDANCE  WITH THE TERMS  THEREOF
         MICROSOFT SHALL USE ITS COMMERCIALLY  REASONABLE BEST EFFORTS TO OBTAIN
         CONSENT TO COMPANY'S  ASSUMPTION OF ANY CONTRACTS REQUIRING THIRD PARTY
         CONSENT. COMPANY SHALL BE SOLELY RESPONSIBLE FOR ALL COLLECTION MATTERS
         AND  ENTITLED  TO RECEIVE  ALL  BILLINGS,  PAYMENTS,  AND  RECEIPTS  IN
         CONNECTION   WITH  THE  ASSUMED   OBLIGATIONS,   AND  SHALL  BE  SOLELY
         RESPONSIBLE  FOR COMPLYING WITH  MICROSOFT'S  OBLIGATIONS  AND ASSUMING
         MICROSOFT'S   LIABILITIES   UNDER  AND  WITH  RESPECT  TO  THE  ASSUMED
         OBLIGATIONS.  COMPANY  ASSUMES  NO  LIABILITIES  WITH  RESPECT  TO  THE
         RETAINED  OBLIGATIONS.  AS OF THE TIME OF SUCH  DELIVERY AND SUBJECT TO
         SUCH  EFFECTIVENESS,  MICROSOFT'S  SOLE OBLIGATIONS WITH RESPECT TO THE
         ASSUMED OBLIGATIONS SHALL BE ITS OBLIGATIONS TO

         COMPANY  AS SET FORTH IN THIS  AGREEMENT  EACH PARTY WILL REMIT TO THE
         OTHER,  WITHIN @ (30) DAYS OF RECEIPT,  ANY  AMOUNTS  RECEIVED BY SUCH
         PARTY  WHICH WERE  EARNED BY THE OTHER  PARTY IN  CONNECTION  WITH THE
         ACQUIRED ASSETS AND SUPPORT  THEREOF,  AS DETERMINED AS OF THE CLOSING
         DATE.

                                   ARTICLE III
                           PURCHASE PRICE AND PAYMENT

     3.1 Minimum  Purchase  Price.  SUBJECT TO ARTICLE  VII,  COMPANY  SHALL PAY
     MICROSOFT  A  MINIMUM  PURCHASE  PRICE OF TWO  MILLION  SEVEN  HUNDRED  AND
     EIGHTY-FOUR THOUSAND SIX HUNDRED AND FOUR DOLLARS (US$2,784,604.00),  WHICH
     SHALL INCLUDE BOTH AN ASSUMPTION OF OBLIGATIONS AND AN EQUITY COMPONENT AND
     WHICH SHALL BE DUE AND  NONREFUNDABLE  AS OF THE CLOSING  DATE, AS FOLLOWS:
     7.2.14
         3.1.1 COMPANY SHALL MAKE AN INITIAL PAYMENT TO MICROSOFT IN THE FORM OF
         AN  ASSUMPTION  OF  ASSUMED   OBLIGATIONS  EQUAL  TO  SIX  HUNDRED  AND
         EIGHTY-FOUR THOUSAND SIX HUNDRED AND FOUR DOLLARS (US$684,604.00).
         7.2.15
         3.1.2  COMPANY  SHALL MAKE  FURTHER  PAYMENTS IN THE FORM OF  COMPANY'S
         COMMON  STOCK,  PAR VALUE  $.OOI PER SHARE OF COMPANY  (THE  "SHARES"),
         WHICH SHARES SHALL BE EVIDENCED BY STOCK  CERTIFICATES WITH LEGENDS AND
         RESTRICTIONS  AS REQUIRED BY LAW.  THIS  PAYMENT  SHALL BE DELIVERED TO
         MICROSOFT AS FOLLOWS:  ON THE EIGHTEEN  (18) MONTH  ANNIVERSARY  OF THE
         CLOSING DATE (THE  "18-MONTH  ANNIVERSARY  DATE"),  COMPANY SHALL ISSUE
         SHARES TO  MICROSOFT  HAVING A FAIR  MARKET  VALUE OF TWO  MILLION  ONE
         HUNDRED THOUSAND DOLLARS (US$2,100,000.00).  THE "FAIR MARKET VALUE" OF
         THE SHARES TO BE ISSUED UNDER THIS SECTION 3.1.2 SHALL BE DETERMINED BY
         DIVIDING TWO MILLION ONE HUNDRED THOUSAND DOLLARS  (US$2,100,000.00) BY
         THE AVERAGE  CLOSING  PRICE OF THE SHARES AS  PUBLICLY  REPORTED BY THE
         EXCHANGE ON WHICH THE SHARES ARE LISTED,  AS OF THE CLOSING TIME OF THE
         LISTING  EXCHANGE (IN SUCH  EXCHANGE'S  TIME ZONE) OVER THE TWENTY (20)
         TRADING DAYS ENDING ONE TRADING DAY PRIOR TO THE  18-MONTH  ANNIVERSARY
         DATE. THE FOLLOWING  EXAMPLE IS INSERTED FOR PURPOSES OF  CLARIFICATION
         OF THE  PRECEDING  SENTENCE:  ASSUME THE 18-MONTH  ANNIVERSARY  DATE IS
         WEDNESDAY,  APRIL 1, 1998. THE SPECIFIED TWENTY (20) TRADING DAY PERIOD
         WILL END ON AND INCLUDE  TUESDAY,  MARCH 31,  1998.  ASSUME THE AVERAGE
         PRICE  DURING  SUCH  TWENTY  (20)  TRADING  DAY PERIOD IS FOUR  DOLLARS
         (US$4.00)  PER SHARE;  MICROSOFT  WOULD BE ENTITLED TO RECEIVE  525,000
         SHARES ON THE 18-MONTH ANNIVERSARY DATE.

     3.2 Additional Share Issuance.  AS FURTHER  CONSIDERATION  FOR THE PROPERTY
     PURCHASED  UNDER THIS AGREEMENT,  ON OR PRIOR TO THE CLOSING DATE,  COMPANY
     SHALL ISSUE AND DELIVER ONE HUNDRED THOUSAND (100,000) SHARES TO MICROSOFT,
     WITH ANY LEGENDS AND  RESTRICTIONS  AS REQUIRED BY LAW, AND RECEIPT OF SUCH
     SHARES BY  MICROSOFT  SHALL BE A  CONDITION  TO THE  EFFECTIVENESS  OF THIS
     AGREEMENT.
     7.2.16
     3.3 Additional  Contingent Payments by Company.  COMPANY
     SHALL  MAKE  ADDITIONAL  PAYMENTS  OF SHARES TO  MICROSOFT  BASED  UPON THE
     CUMULATIVE   TOTAL  OF  PRODUCT  REVENUES  earned  by  Company  during  the
     Transition  Period TO the extent such cumulative  total exceeds One Million
     Dollars  (US$1,000,000.00).  Such additional payments shall be comprised of
     the following:

         3.3.1 ONE  SHARE  FOR  EVERY  FIFTY  DOLLARS  (US$50.00)  OF  COMPANY'S
         CUMULATIVE  PRODUCT REVENUES DURING THE TRANSITION PERIOD TO THE EXTENT
         SUCH PRODUCT REVENUES EXCEED ONE MILLION DOLLARS  (US$1,000,000.00) BUT
         ARE LESS THAN FOUR MILLION DOLLARS (US$4,000.000-00); AND
         7.2.17
         3.3.2 ONE SHARE FOR EVERY TWENTY-FIVE  DOLLARS  (US$25.00) OF COMPANY'S
         PRODUCT  REVENUES DURING THE TRANSITION  PERIOD FOR CUMULATIVE  PRODUCT
         REVENUES IN EXCESS OF FOUR MILLION DOLLARS  (US$4,000,000-00)  BUT LESS
         THAN  FOURTEEN  MILLION  DOLLARS  (US$14,000.000.00).

<PAGE>

          FOR  PURPOSES  OF  DETERMINING  PRODUCT  REVENUES,   WHENEVER  COMPANY
          RECEIVES AN  INDIVISIBLE  REVENUE  STREAM FOR TWO OR MORE  PRODUCTS OR
          SERVICES,  INCLUDING  FEES WHICH ARE  INCLUDED  IN THE  DEFINITION  OF
          PRODUCT  REVENUES,  THEN COMPANY  WILL  PROPOSE A REASONABLE  AND GOOD
          FAITH  ALLOCATION OF SUCH REVENUES  ACROSS THE APPLICABLE  PRODUCTS OR
          SERVICES  IN  CONSULTATION  WITH  MICROSOFT.  COMPANY  SHALL ISSUE AND
          DELIVER  ALL SHARES DUE TO  MICROSOFT  UNDER THIS  SECTION  5.3 WITHIN
          SIXTY  (60) DAYS  AFTER THE "I  8-MONTH  ANNIVERSARY  DATE,"  WITH ANY
          LEGENDS AND RESTRICTIONS AS REQUIRED BY LAW.
7.2.18
     3.4  Restriction on Transfer.  ALL OF THE SHARES ISSUED TO MICROSOFT  UNDER
     THIS AGREEMENT SHALL BE SUBJECT TO A CERTAIN  INVESTMENT  AGREEMENT BETWEEN
     THE PARTIES, A FORM OF WHICH IS ATTACHED AS EXHIBIT E TO THIS AGREEMENT.
     7.2.19
     7.2.20 3.5 Fractional  Shares.  IN CONNECTION  WITH THE SHARES TO BE ISSUED
     PURSUANT TO SECTIONS 3.1 AND 3.2, NO FRACTIONAL  SHARES WILL BE ISSUED.  IN
     LIEU OF SUCH ISSUANCE, THE NUMBER OF SHARES ISSUED TO MICROSOFT PURSUANT TO
     THE TERMS OF THIS AGREEMENT SHALL BE ROUNDED TO THE CLOSEST WHOLE SHARE.

                                   ARTICLE IV
                                     CLOSING

     4.1 Closing and Delivery of Acquired Assets. THE CLOSING OF THE TRANSACTION
         (THE  "Closing")   WILL  TAKE  PLACE  AS  SOON  AS  PRACTICABLE   AFTER
         SATISFACTION  OR WAIVER OF THE LAST TO BE FULFILLED  OF THE  CONDITIONS
         SET FORTH IN  ARTICLE  VII THAT BY THEIR  TERMS ARE NOT TO OCCUR AT THE
         AGREEMENT DATE (THE "Closing Date"),  AT THE OFFICES OF PRESTON GATES &
         ELLIS, SEATTLE,  WASHINGTON,  UNLESS ANOTHER DATE OR PLACE IS AGREED TO
         BY THE PARTIES HERETO. MICROSOFT AND COMPANY AGREE THAT MICROSOFT SHALL
         DELIVER THE ACQUIRED ASSETS TO COMPANY IN THE STATE OF NEW YORK.
     7.2.21
         7.2.22   4.2      Method of Acquisition.

         4.2.1 CONVEYANCE OF ACQUIRED ASSETS.  The sale,  conveyance,  transfer,
         assignment  and delivery to Company of the Acquired  Assets,  as herein
         provided,  shall be  effected  by such  bills  of  sale,  endorsements,
         assignments and other  instruments of transfer and conveyance as may be
         necessary to vest in Company the right, title and interest of Microsoft
         in and to the  Acquired  Assets,  free and clear of all liens,  claims,
         charges  and  encumbrances,   except  as  otherwise  provided  in  this
         Agreement.   Such  documents  shall  include,  without  limitation,  an
         Assignment  and Bill of Sale in the form hereto as Exhibit F. Microsoft
         shall,  at the  Closing  or at any time or from time to time  after the
         Closing, upon request,  perform or cause to be performed such acts, and
         execute, acknowledge and deliver or cause to be executed,  acknowledged
         and  delivered,  such  documents  as  may  be  reasonably  required  or
         requested to effectuate the sale, conveyance,  transfer, assignment and
         delivery  to  Company  of  any  of  the  Acquired  Assets  or  for  the
         performance by Microsoft of any of its obligations hereunder.

         4.2.2    Assumption  of  Obligations.  COMPANY  SHALL  AT  THE  CLOSING
                  EXECUTE AN  ASSUMPTION  OF  OBLIGATIONS  IN THE FORM  ATTACHED
                  HERETO AS EXHIBIT G, AND WILL,  AT THE  CLOSING OR AT ANY TIME
                  OR FROM TIME TO TIME AFTER THE CLOSING, UPON REQUEST,  PERFORM
                  OR CAUSE TO BE PERFORMED SUCH ACTS,  AND EXECUTE,  ACKNOWLEDGE
                  AND  DELIVER  OR  CAUSE  TO  BE  EXECUTED,   ACKNOWLEDGED  AND
                  DELIVERED,  SUCH OTHER DOCUMENTS AS MAY BE REASONABLY REQUIRED
                  OR  REQUESTED  FOR THE  ASSUMPTION  BY COMPANY OF THE  ASSUMED
                  OBLIGATIONS  OR  FOR  THE  DISCHARGE  OR  THE  PERFORMANCE  BY
                  MICROSOFT OF ANY OF ITS OBLIGATIONS HEREUNDER.
         7.2.23
         7.2.24
         7.2.25
         7.2.26

<PAGE>

                                    ARTICLE V
                         REPRESENTATIONS AND WARRANTIES

5.1      Representations  and  Warranties  of COMPANY.  COMPANY  REPRESENTS  AND
         WARRANTS TO MICROSOFT ON EXECUTION OF THIS AGREEMENT AND, IF LATER,  ON
         THE CLOSING DATE AS FOLLOWS:
7.2.27
         5.1.1 AUTHORITY.  It has the full power to enter into and perform under
         this Agreement and give the license grants set forth herein.

         5.1.2 ADEQAUTE SHARES.  Company has and will keep available an adequate
         number of authorized but unissued Shares to permit the issuances of the
         Shares  required  pursuant  to  this  Agreement  and  the  transactions
         contemplated hereby.

         5.1.3 DUE AUTHORIZATION.  The Shares to be issued to Microsoft pursuant
         to the  terms of this  Agreement  and the  Investment  Agreement,  when
         issued in accordance with this Agreement and the Investment  Agreement,
         will be duly authorized, validly issued, fully paid and nonassessable.

         5.1.4 RELIANCE.  The foregoing  representations and warranties are made
         by Company with the knowledge and expectation that Microsoft is placing
         reliance thereon.

7.2.28   5.2      Representations and Warranties of Microsoft.  MICROSOFT
REPRESENTS AND WARRANTS TO COMPANY AS FOLLOWS:

         5.2.1    AUTHORITY.  It has the full  power to enter  into and  perform
                  under this  Agreement  and give the  license  grants set forth
                  herein.

         5.2.2 OWNERSHIP OF ACQUIRED ASSETS.  It has not previously and will not
         grant any  rights to any third  party  that are  inconsistent  with the
         rights granted to Company herein.

         5.2.3 TITLE; NO LIENS. It has good title to all of the Acquired Assets,
         free and  clear  of any  liens,  claims,  charges,  chattel  mortgages,
         security interests or other encumbrances of whatsoever nature.

         5.2.4 CONFLICTS, BINDING OBLIGATION. The execution and delivery of this
         Agreement does not, and the transactions  contemplated hereby will not,
         violate or be in conflict  with any  agreement or  contract,  including
         without limitation the Netwise Asset Purchase  Agreement.  There are no
         claims by Netwise  against  Microsoft in  connection  with the Acquired
         Assets or the Netwise Asset Purchase Agreement. This Agreement has been
         duly executed and  delivered by Microsoft  and  constitutes a valid and
         legally binding obligation of Microsoft, enforceable in accordance with
         its terms.

         5.2.5 CONSENTS.  No consent,  action,  approval or authorization of, or
         registration,  declaration or filing with, any federal,  state or local
         governmental  agency or any third  party is  required to be obtained by
         Microsoft in order to authorize the execution and delivery by Microsoft
         of this Agreement or the performance by Microsoft of the terms hereof.

         5.2.6 RELIANCE.  The foregoing  representations and warranties are made
         by Microsoft with the knowledge and expectation that Company is placing
         reliance thereon.

     The  foregoing  warranties  are for the benefit of Company  only and do not
     extend to any  potential or claimed  third party  beneficiaries.  EXCEPT AS
     EXPRESSLY  PROVIDED IN THIS  SECTION  5.2,  AND  SUBJECT TO SECTION  7.1.3,
     MICROSOFT  IS SELLING THE  ACQUIRED  ASSETS ON AN "AS IS" BASIS.  MICROSOFT
     EXPRESSLY  DISCLAIMS  ANY  AND  ALL  OTHER  WARRANTIES,  INCLUDING

<PAGE>

     WITHOUT LIMITATION THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
     PARTICULAR PURPOSE.

                                   ARTICLE VI

                              ADDITIONAL AGREEMENTS

     In addition to the foregoing,  Microsoft and Company each agree to take the
     following  actions  and to  comply  with  the  following  terms  after  the
     execution of this Agreement.

         7.2.29   6.1.     Registration Rights.

         6.1.1 CANADIAN REGISTRATION RIGHTS. Within sixty (60) days after the 18
         Month Anniversary Date, and upon the written request of Microsoft,  the
         Company  shall prepare and file -with the British  Columbia  Securities
         Commission (the "BC Commission")  and the securities  commission of any
         other  province  of  Canada in which the  Company  is then a  reporting
         issuer   (collectively,   with  the  BC   Commission,   the   "Canadian
         Commission") a preliminary  prospectus  qualifying the  distribution of
         the Shares so as to enable Microsoft to freely resell the Shares issued
         under this Agreement  without being subject to any hold period or other
         resale  restriction under applicable  Canadian  securities  legislation
         ("Canadian  Legislation").  As promptly as practicable after the filing
         of the preliminary  prospectus,  the Company shall us6 its best efforts
         to file a final prospectus  relating to such distribution  with, and to
         obtain  a  receipt   therefor  from,  the  Canadian   Commission  under
         applicable Canadian Legislation. The Company shall use its best efforts
         to keep any resale  prospectus  current under the Canadian  Legislation
         for a period of one year, or such shorter period as may be required for
         Microsoft to fully dispose of all the Shares thereunder.  In connection
         with the issuance of the shares, Microsoft agrees to provide any notice
         or undertakings required by the Canadian  Legislation,  or by any stock
         exchange located in Canada on which the Shares then trade.

         6.1.2 6.1.2 U.S.  Piggy-Back  Rights. If Company is a reporting company
         under Section 12(b) of 12(g) of the Securities Exchange Act of 1934, as
         amended (a "Reporting Company"), then Microsoft subject to this Section
         may have all or any portion of its Shares included in any  registration
         of Shares  under the  Securities  Act of 1933,  as amended (the "Act").
         Whenever  Company  proposes to  register  under the Act the sale of any
         class of its common  stock or the common  stock  holdings of any of its
         stockholders, then on any such occasion, Company will furnish Microsoft
         with  prompt  written  notice  thereof.  To  the  extent  permitted  by
         applicable securities laws and this Agreement, Company will, subject to
         Section 6.1.4,  include in such registration such number of Microsoft's
         Registrable  Shares as Microsoft shall request to be included  therein.
         "Registrable  Shares"  shall mean all  Shares  issued  pursuant  to the
         provisions of this Agreement.  Microsoft shall exercise the "Piggy-back
         rights" under this Section by giving  written notice to Company to such
         effect  within seven (7) days after  receipt of the  Company's  written
         notice of any  proposed  registration  by  Company  as  aforesaid.  The
         provisions of this Section 6.1.2 shall not apply to a registration  (1)
         on Form S-8 or other  comparable form relating solely to employee stock
         benefit plans, (2) on Form S-4 or other comparable form relating solely
         to business combination transactions, or (3) such other form which does
         not include  substantially the same information as would be included in
         a  registration  statement  covering  the sale of  common  stock to the
         public.

         6.1.3 U.S.  DEMAND  REGISTRATION.  In the event  that the  Company is a
         Reporting  Company,  Microsoft  may,  (i)  on an  unlimited  number  of
         occasions (but not more than twice in any twelve month period)  require
         the Company to effect the  registration  of Registrable  Shares on Form
         S-3 (or any successor form thereto,  a "Short Form  Registration);  and
         (ii) in the event a Short Form  Registration is unavailable at the time
         of such  request on one  occasion,  require  the  Company to effect the
         registration  of Registrable  Shares on Form S-1 (or any successor form
         thereto,  a "Long

<PAGE>

          Form  Registration"),  in each case pursuant to the provisions of this
          Section  6.1.3.  If Microsoft  shall give notice to the Company to the
          effect that it desires to transfer  Registrable  Shares  pursuant to a
          public distribution  (within the meaning of the Act), then the Company
          shall, as promptly as practicable after receipt of such notice (but in
          any  event  within  60 days  after  receipt  of such  notice),  file a
          registration  statement on the  appropriate  form  pursuant to the Act
          and, as promptly as is practicable thereafter, use its best efforts to
          cause Registrable  Shares to be registered under the Act and qualified
          under the securities or blue sky laws of any jurisdiction requested by
          Micro'sof4  to the end that  such  Registrable  Shares  may be sold by
          Microsoft  under the Act and  pursuant to the  securities  or blue sky
          laws of the  jurisdictions  requested,  as promptly as is  practicable
          thereafter and the Company will use its best efforts to cause any such
          registration to become  effective and to keep the prospectus  included
          therein  current  for a period  of one year  from the  effective  date
          thereof  or,  if  sooner,  until  the  distribution  shall  have  been
          completed; provided that Microsoft shall furnish the Company with such
          appropriate  information  in  connection  therewith as the Company may
          reasonably  request in writing.  Notwithstanding  the  foregoing,  the
          Company (i) shall not be  required to effect a Long Form  Registration
          hereunder  unless the proposed  minimum  aggregate  offering price set
          forth  on the  cover  of  the  initial  filing  exceeds  $1.0  million
          (excluding  any shares which  Microsoft  may then sell into the public
          market  pursuant  to Rule 144  under the  Act),  and (ii) may,  on one
          occasion,  delay or withdraw  Microsoft's Long Form Registration under
          this Section 6.1.3 if the Company's  board of directors  determines in
          good faith that the timing of the registration would be detrimental to
          the best  interests  of the  Company.  Subject  to the  provisions  of
          Section   6.1.5,   in  the  event  Company   elects  to  withdraw  the
          registration statement,  Company will bear no liability of any kind to
          Microsoft,  except for  attorneys'  and  advisors'  fees  incurred  by
          Microsoft.  The managing  underwriters,  if any, for any offering made
          pursuant to this  Section  6.1.3  shall be  selected  by the  Company.
          Without the prior written consent of Microsoft, which consent will not
          be  unreasonably   withheld,   the  Company  will  not  include  in  a
          registration  pursuant to Section 6.1.3 any  securities  which are not
          Registrable Shares if the inclusion of such other securities would, in
          the   reasonable   opinion   of   Microsoft,   adversely   impact  the
          marketability  or  value of the  Registrable  Shares  subject  to such
          registration.

         6.1.4  GENERAL  REGISTRATION  PROVISIONS.  In  the  event  an  offering
         effected under this Section 6.1 is an underwritten offering,  Microsoft
         shall  (together with Company and other persons,  if any,  distributing
         their  shares  through  such  offering)   enter  into  an  underwriting
         agreement  in  customary  form with the  under-writer  or  underwriters
         selected for such underwriting.  Notwithstanding any other provision of
         this  Section  6.  1,  if the  underwriter  reasonably  determines  and
         notifies  Company  and  Microsoft  in writing  that  marketing  factors
         require a limitation  of the number of shares to be  underwritten,  the
         underwriter may limit the number of shares  included  therein first, by
         reducing the number of shares to be included by shareholders who do not
         have contractual rights to include shares in such  registration,  then,
         if and to the extent additional  limitations are required,  by reducing
         the number of  Registrable  Shares to be included  in the  registration
         pari passu with any shares held by other  shareholders of Company which
         have contractual  rights to include shares in such registration  (other
         than those shareholders  (including Microsoft) whose exercise of demand
         registration  rights resulted in the relevant  underwritten  offering).
         The Company shall advise  Microsoft of any such  limitation made by the
         underwriter and of the number of Registrable  Shares,  if any, that may
         be included in the registration  along with such materials  utilized to
         calculate such limitation on the number of Registrable  Shares.  In the
         event the terms of such underwriting  include  provisions which are not
         customary or  commercially  reasonable for such type of transaction and
         if  Microsoft  disapproves  of such  terms,  it may  elect to  withdraw
         therefrom by written notice to Company or the  underwriter and any such
         offering  shall not be counted as a demand  registration  under Section
         6.1.3.  All  expenses  in  connection  with  preparing  and  filing any
         registration  statement  under this Agreement (and any  registration or
         qualification  under  the  securities  or "Blue  Sky" laws of states in
         which the  offering  will be made  under such  registration  statement)
         shall be borne in full by Company,  except for discounts or commissions
         relating to the Registrable Shares or fees of counsel or other advisors
         to  Microsoft.  The  rights  pro

<PAGE>

          any permitted  assignee or transferee  pursuant to Section 10.3 hereof
          Notwithstanding  anything to the  contrary  in this  Section 6. 1, the
          provisions of this Section 6.1 shall be subject to and consistent with
          the  restrictions  on resale  of the  Shares  set forth in  Investment
          Agreement.

         6.1.5 PUT RIGHT. Notwithstanding the foregoing provisions of Section 6.
         1, if the Company is a Reporting  Company  Microsoft may, at it option,
         require the  Company to  purchase,  and the Company  agrees to purchase
         from  Microsoft,  all or such  portion  of the  Registrable  Shares  as
         Microsoft  directs in the event the  Company  elects not to file a Long
         Form Registration in accordance with the provisions of Section 6.1.3 or
         in the event a  Microsoft's  right to demand a  Long-Form  Registration
         under Section 6.1.3 is otherwise not available for the  registration of
         such  Registrable  Shares (the "Put  Right").  Microsoft  shall provide
         Company with written  notice of its intention to exercise its Put Right
         (the "Put Notice")  which shall include the number of shares to be sold
         to Company and the purchase price therefor. The purchase price for each
         share to be sold to Company  under the Put Right  shall be the  Current
         Market Price as of the date of the Put Notice. The term "Current Market
         Price" for the each share as of a specified date shall mean the average
         closing  sale price over the  preceding  10 trading days as reported on
         the  principal  U.S.  stock  exchange or quotation  system on which the
         shares are listed or quoted The  provisions  of the Section 6.1.4 shall
         terminate  on the  later to  occur  of (i) one  year  from the date the
         Company  becomes  a  Reporting  Company  and  (ii) at such  time as the
         Company becomes  eligible to use a Short Form  Registration to register
         Registrable Shares.

6.2  BOARD  REPRESENTATION.  At such  time as  Microsoft  acquires  at least two
percent (2%) of the  outstanding  voting  securities  of Company,  Company shall
notify Microsoft  thereof in writing.  Within ninety (90) days of the receipt of
such notice,  Microsoft,  in its sole discretion,  may, but is not obligated to,
notify Company of a person selected by Microsoft (the "Microsoft Designee") whom
Company will promptly appoint to its Board of Directors. Thereafter, for so long
as  Microsoft  holds  at  least  two  percent  (2%)  of the  outstanding  voting
securities  of  Company,  at each  meeting of  Company's  stockholders  at which
directors are to be elected:  (a)  Company's  management  will  recommend to its
stockholders  the  election  of  Microsoft's  Designee  to  Company's  Board  of
Directors, and (b) Kevin M. Kelly, Joseph T. Mohen, and James F. Kelly will each
vote all of their Company voting securities in favor of the Microsoft Designee's
election  to Company  Board of  Directors.  Notwithstanding  the  foregoing,  if
Microsoft fails to notify Company of a Microsoft Designee within the ninety (90)
day period  following the date on which  Microsoft has received  notice  written
notice from Company that Microsoft has acquired at least two percent (2%) of the
outstanding  voting securities of Company,  Microsoft shall forfeit its right to
have the Microsoft Designee  appointed to the Board of Directors,  or to require
Company  management to recommend  the election of the Microsoft  Designee to the
Board of Directors.

6.3 BACKOFFICE  LICENSE  RIGHTS.  Microsoft  shall deliver to Company as soon as
commercially  available  one (1) copy of  Microsoft  BackOffice(TM)  v. 2.5, and
shall  be  deemed  to  have  granted  to  Company,  as of the  Closing  Date,  a
non-exclusive,  royalty-free,  revocable,  personal and nontransferable  license
authorizing  Company to  exercise  the license  rights set forth in  Microsoft's
standard end user license  agreements  "EULAs")  for such  Microsoft  BackOffice
software,  subject  to the  following  amended  terms  which are  hereby  deemed
incorporated  in  such  EULAs  and  shall  modify  and  supersede  any  contrary
provisions in such EULAS. The foregoing  license grant from Microsoft to Company
shall  authorize  Company to use fifteen  (15) Server  Licenses  and one hundred
(100) Client Access  Licenses to the  Microsoft  BackOffice  software  products;
provided,  however,  that Company may exercise rights under such licenses solely
for purposes of testing and internal use by Company  employees and solely during
the Transition  Period,  after which the foregoing grant of license rights shall
expire  automatically  and Company shall be obligated to acquire any  additional
license  rights to Microsoft Back Office  products  through  standard  Microsoft
distribution channels.

<PAGE>

6.4 EXPENSES.  Whether or not the transactions contemplated under this Agreement
are closed,  except as  specifically  provided in the  Agreement,  all costs and
expenses  incurred  in  connection  with  this  Agreement  and the  transactions
contemplated hereby shall be paid by the party incurring such expense.

6.5 ADDITIONAL AGREEMENTS. In case at an time after the Closing Date any further
action is  reasonably  necessary  or desirable to carry out the purposes of this
Agreement,  the proper  officers and  directors of each  corporation  which is a
party to this Agreement shall take all such necessary action.

6.6  CONFIDENTIALITY  OBLIGATIONS.  Microsoft and Company shall each protect the
other's  Confidential  Information from unauthorized  dissemination and use with
the  same  degree  of care  that  such  party  uses  to  protect  its  own  like
information.  Neither party will use the other's  Confidential  Information  for
purposes  other than those  necessary  to directly  further the purposes of this
Agreement. Neither party will disclose to third parties the other's Confidential
Information  without the prior  written  consent of the other  party.  Except as
expressly provided in this Agreement, no ownership or license rights are granted
in  any  Confidential  Information.  Without  limiting  the  generality  of  the
foregoing-,  no  information  concerning  this  Agreement  or  the  transactions
contemplated  herein shall be  disclosed  by  Microsoft  or Company  without the
consent  of the  other  party  except to such  party's  employees,  agents,  and
attorneys and financial advisors on a need to know basis,  provided however that
nothing  contained herein shall prevent either party at any time from furnishing
any such  information  to the extent  required  by  judicial  or  administrative
process or from making any public  disclosure  when such party  believes in good
faith and after consultation with the other party that it is legally required to
do so.

6.7 PUBLIC  ANNOUNCEMENTS.  Microsoft  and Company  agree to issue a joint press
release  which shall be approved in advance in writing by both parties and which
shall announce their entry into this Agreement.

6.8 TAXES. Any sales or use or similar tax or levy arising from the transactions
contemplated by this Agreement shall be the sole  responsibility  of Company and
Company shall  indemnify  Microsoft  from and against any  liability  arising in
connection therewith. Company acknowledges and agrees that Microsoft in its sole
and exclusive  discretion shall control any defense against an assertion for any
such tax or levy at the expense of Company,  and that if any such  assertion  is
made to Microsoft,  Microsoft  shall provide  Company with prompt notice of such
assertion.

6.9 BULK  SALES.  Without  implication  that such laws apply to the  transaction
contemplated hereby,  Company and Microsoft shall not comply with the provisions
of the Uniform Commercial Code of any states relating to bulk sales.

                                   ARTICLE VII

                              CONDITIONS PRECEDENT

7.1 CONDITIONS TO COMPANY'S  OBLIGATIONS.  The obligations of Company  hereunder
are subject to the satisfaction, at or before the Closing Date, of the following
conditions (any of which may be waived, in whole or in part, by Company):

         7.1.1   REPRESENTATIONS   AND  WARRANTIES.   The   representations  and
         warranties of Microsoft  contained in this Agreement  shall be true and
         correct in all  material  respects at the Closing Date as if made again
         on and as of the Closing Date.  Microsoft shall have duty performed and
         complied with all agreements and conditions  required by this Agreement
         to be performed or complied  with by Microsoft on or before the Closing
         Date.  Microsoft  shall  furnish  Company  with  a  certificate  of  an
         appropriate  officer of Microsoft,  dated the Closing Date,  certifying
         the fulfillment of the foregoing conditions.

         7.1.2  DELIVERY OF SOFTWARE  CODE.  Microsoft  shall have  delivered to
         Company a copy of Source Code that can be compiled into complete Object
         Code for the  software  components  of the  Acquired  Assets  which are
         designed  to operate on the MVS  Platform  and the  Windows  Platforms;
         provided, however, that Company shall perform any compilation processes
         and acceptance  tests

<PAGE>

          on such Source Code which Company finds necessary or desirable  within
          five (5) days of  Microsoft's  delivery  of such  code,  and such code
          shall be deemed to satisfy  the  foregoing  condition  unless  Company
          notifies  Microsoft  within  the  foregoing  five (5) day  period of a
          material  error or omission  within such Source Code as  delivered  by
          Microsoft.  Any such notice shall contain sufficient details to enable
          Microsoft  to diagnose and correct any alleged  material  omissions or
          other errors, and Microsoft may at its option correct and resubmit the
          applicable  Source Code to Company at any time within thirty (30) days
          of receiving a rejection  notice from Company.  In the event Microsoft
          does not so  re-deliver an  acceptable  version of the software  code,
          then upon Company's  request Microsoft shall return to the Company any
          Shares  it has  received  following  the end of such  thirty  (30) day
          period and upon any such return  neither  party shall have any further
          obligations  or  liabilities  in  connection   with  this   Agreement,
          including,   without  limitation,   in  connection  with  the  Assumed
          Obligations.  Except as provided in this paragraph,  the Company shall
          be deemed to have accepted the Acquired Assets upon their delivery.

         7.1.3 CONVEYANCE OF ACQUIRED ASSETS.  Microsoft shall have executed and
         delivered  the  Assignment  and Bill of Sale  conveying  to Company the
         Acquired Assets.

         7.1.4    INVESTMENT AGREEMENT.    Microsoft   shall   have executed and
         delivered the Investment Agreement

         7.1.5 OPINION OF COUNSEL.  Company  shall have  received  an opinion of
              Preston  Gates & Ellis,  counsel  to  Microsoft,  relating  to the
              authorization and enforceability of this Agreement.

7.2  CONDITIONS  TO  MICROSOFT'S  OBLIGATIONS.   The  obligations  of  Microsoft
hereunder are subject to the satisfaction, at or before the Closing Date, of the
following  conditions  (any of which  may be  waived,  in  whole or in part,  by
Microsoft):

          7.2.1   REPRESENTATIONS   AND  WARRANTIES.   The  representations  and
          warranties of Company  contained in this  Agreement  shall be true and
          correct in all material  respects at the Closing Date as if made again
          on and as of the Closing Date.  Company shall have duly  performed and
          complied with all agreements and conditions required by this Agreement
          to be performed  or complied  with by Company on or before the Closing
          Date.  Company  shall  furnish  Microsoft  with  a  certificate  of an
          appropriate officer of Company, dated the Closing Date, certifying the
          fulfillment of the foregoing conditions.

         7.2.2  DELIVERY OF  CONSIDERATION.  Company  delivers to Microsoft  the
         100,000 Shares described in Section 3.2.

         7.2.3  ASSUMPTION  OF  OBLIGATIONS.  Company  shall have  executed  and
         delivered  to  Microsoft  an  Assumption  of  Obligations  assuming the
         Assumed Obligations.

         7.2.4 OPINION OF COUNSEL.  Microsoft  shall have received an opinion of
         Parker Chapin Flattau and Kimpl, LLP, counsel to the Company,  relating
         to (i) the authorization and enforceability of this Agreement, (ii) the
         authorization  of the Shares to be issued pursuant to the terms of this
         Agreement, and (iii) the compliance with any applicable securities laws
         relating  to the  issuance  of  the  Shares  as  contemplated  by  this
         Agreement (other than the laws of British Columbia).

         7.2.5  EFFECTIVENESS.  THIS AGREEMENT  SHALL BECOME  EFFECTIVE UPON THE
         EXECUTION  OF THIS  AGREEMENT  BY COMPANY  AND  MICROSOFT  AND UPON THE
         SATISFACTION,  ON OR BEFORE THE CLOSING  DATE,  OF THE  CONDITIONS  SET
         FORTH IN SECTIONS 7.1 AND 7.2,  UNLESS ANY OF SUCH  CONDITIONS HAS BEEN
         WAIVED, IN WHOLE OR IN PART, BY COMPANY OR MICROSOFT, RESPECTIVELY.

<PAGE>

                                  ARTICLE VIII
                              CONDITIONS SUBSEQUENT

     Microsoft  and  Company  further  agree to  comply  with  their  respective
     obligations  as set forth in this Article  VIII,  and Microsoft and Company
     agree and acknowledge that in the event either of them materially  breaches
     its customer  support  obligations  as set forth in this Article VIII,  the
     other party shall be entitled to exercise any and all remedies available at
     law or in equity with respect to such breach. Each of Microsoft and Company
     further agrees that in the event a party reasonably  alleges such a breach,
     the other party shall  negotiate in good faith promptly upon the request of
     such party with respect to any  possible  future  arrangements  between the
     parties which may address the needs of customers of the software components
     of the Acquired  Assets,  and to establish a fair and  reasonable  pro rata
     allocation of support  revenues  associated with providing  support to such
     customers.

8.1 PRODUCT SUPPORT PLAN.  During the Transition  Period,  Microsoft and Company
will each carryout their  responsibilities for customer support for the software
components of the Acquired  Assets as set forth in the Transition Plan set forth
in Exhibit A hereto.  As described in such Transition Plan, during the Follow-On
Transition  Period,  (i) Company will be responsible  for providing all customer
support for the software  components of the Acquired Assets which operate on the
MVS Platform and Windows  Platforms,  and (ii) Microsoft will be responsible for
providing  customer  support  to  Company  for the  software  components  of the
Acquired  Assets  which  operate  on Other  Platforms.  Company  will  have sole
responsibility  for providing  customer support for any versions of the software
components of the Acquired  Assets which operate on any new platform as a result
of Company's development efforts after the Closing.  After the expiration of the
Transition Period, Microsoft shall have no further obligations to Company or its
customers with respect to any technical or other  customer  support for software
components of the Acquired Assets.

8.2 PAYMENTS RELATED TO PRODUCT SUPPORT.  During the Initial  Transition Period,
Microsoft will provide the resources and customer support  assistance  described
in the Transition Plan at no charge to Company. During, the Follow-On Transition
Period,  (i) Microsoft will provide at no charge to Company  secondary  customer
support as described in the Transition  Plan for the software  components of the
Acquired  Assets  which  operate on Other  Platforms,  and (ii)  Microsoft  will
provide secondary  technical  support to Company for the software  components of
the  Acquired  Assets which  operate on the MVS Platform and Windows  Platforms,
provided  that  Company  shall  pay  Microsoft  a fee of  Five  Hundred  Dollars
(US$500.00)  per Unsupported  Platform  Event.  As used herein,  an "Unsupported
Platform Event' shall mean each instance in which Microsoft  resolves a customer
problem  concerning- the software components of the Acquired Assets that relates
to such software as used on the MVS Platform or Windows Platforms. Company shall
pay all  amounts  payable to  Microsoft  hereunder  within  thirty  (30) days of
Microsoft's invoice date.

8.3  CUSTOMER  RELATIONSHIPS.  Company  shall  be  responsible  for  maintaining
relationships   and  enforcing   agreements  with  all  end  users,   resellers,
distributors,  and other  licensees of the software  components  of the Acquired
Assets as of the Closing  Date.  Microsoft  agrees to cooperate  with Company in
undertaking  the customer  relations  activities  described in Exhibit D to this
Agreement  during  the  Transition  Period.  Microsoft  does  not  represent  or
guarantee,  however, that existing customers and other licensees of the software
components of the Acquired  Assets will maintain or perform under their existing
agreements with respect to such software,  and Company  acknowledges and accepts
the  risk  that  such  current   customers  and  licensees  may  terminate  such
relationships following the Closing Date.

8.4  COMPANY  UPGRADES.  During the Initial  Transition  Period,  Company  shall
promptly  deliver to Microsoft  all error  corrections,  updates and upgrades it
develops or has  developed to the  software  components  of the Acquired  Assets
(collectively,  the "Company Upgrades") in Source Code and Object Code form, and
Company hereby grants to Microsoft a  nonexclusive,  nontransferable,  worldwide
license to use, reproduce,  and modify such Company Upgrades solely for purposes
of providing product support as required by this Agreement. During the Follow-On
Transition  Period,  Company shall promptly  deliver to Microsoft all additional
error  corrections,  updates and  upgrades it develops or has  developed  to the
software  components of the Acquired  Assets as used on the MVS Platform and the
Windows  Platforms,  all in  Source  Code and  Object  Code  form,  and all such
additional  error  corrections,  updates and  upgrades  shall be included in the
"Company  Upgrades" and shall be subject to the foregoing  license grant. In the
event  Company  desires to obtain  support for Other  Platforms  from  Microsoft
during  the  Follow-On

<PAGE>

Transition  Period,  Company  shall provide any error  corrections,  updates and
upgrades  developed by Company which may be relevant to obtaining  such support,
in Source Code and Object  Code form,  and shall  additional  code shall also be
included in the "Company Upgrades" and shall be subject to the foregoing license
grant.  Microsoft shall not retain any rights to Company Upgrades  following the
expiration of the Transition  Period, and at Company's written request Microsoft
shall  destroy  or return  all  copies of such  Company  Upgrades  at such time;
provided,  however,  that  nothing  herein  shall be  deemed  to  supersede  the
provisions  of  Section  6.10 of this  Agreement.  As further  described  in the
Transition  Plan,  Company  acknowledges  that Microsoft  will use  commercially
reasonable  efforts  to provide  customer  support  in the event  Company  makes
substantial  modifications to the Acquired Assets during the Transition  Period,
but that Microsoft may not be able successfully to resolve such customer support
requests notwithstanding Company's delivery of Source Code hereunder.

8.5  MARKETING  EFFORTS.  The parties  agree to  undertake  the joint  marketing
efforts  described in Exhibit C of this  Agreement  with respect to the Acquired
Assets.

                                   ARTICLE IX
                                 INDEMNIFICATION

9.1.     INDEMNIFICATION BY COMPANY.

         9.1.1 Company shall, at its expense and Microsoft's request, defend any
         claim or  action  brought  against  Microsoft  that (a) if true,  would
         constitute  a breach of a warranty by Company in Section  5.1,  (b) any
         Company-authored  derivative  works of the Acquired Assets delivered to
         Microsoft   pursuant  to  Section   8.1.4  violate  any  third  party's
         intellectual  property or other  proprietary  rights,  or (c) arises in
         connection with Company's  performance of its obligations under Article
         VIII hereof,  and Company will  indemnify and hold  Microsoft  harmless
         from and against any costs,  damages  and fees  reasonably  incurred by
         Microsoft,  including  but not limited to fees of  attorneys  and other
         professionals,  that are  attributable  to any such  claims.  Microsoft
         shall: (i) provide Company  reasonably  prompt notice in writing of any
         such claim or action  and  permit  Company,  through  counsel  mutually
         acceptable to Microsoft and Company, TO answer and defend such claim or
         action; and (ii) provide Company information, assistance and authority,
         at Company's  expense,  to help Company to defend such claim or action.
         Company will not be responsible  for any  settlement  made by Microsoft
         without  Company's  written  permission,  which  permission will not be
         unreasonably withheld.

         9.1.2  Microsoft  shall have the right to employ  separate  counsel and
         participate  in the  defense  of any  claim or action  covered  by this
         Section 9. 1. Company  shall  reimburse  Microsoft  upon demand for any
         payments made or loss suffered by it at any time after the date hereof,
         based  upon the  judgment  of any court of  competent  jurisdiction  or
         pursuant to a bona fide compromise or settlement of claims, demands, or
         actions, in respect to any damages related to any claim or action under
         this Section 9. 1.

         9.1.3 Company may not settle any claim or action under this Section 9.1
         on  Microsoft's  behalf  without first  obtaining  Microsoft's  written
         permission,  which permission will not be unreasonably withheld. In the
         event Microsoft and Company agree to settle a claim or action,  Company
         agrees  not  to  publicize  the  settlement   without  first  obtaining
         Microsoft's   written   permission,   which   permission  will  not  be
         unreasonably withheld.

9.2      INDEMNIFICATION BY MICROSOFT.

         9.2.1 Microsoft shall, at its expense and Company's request, defend any
         claim or  action  brought  against  Company  that  (a) if  true,  would
         constitute  a breach of a warranty by Microsoft in Section 5.2, (b) the
         Acquired  Assets as delivered by Microsoft to Company violate any third
         party's  intellectual  property or other proprietary rights (regardless
         of whether such claim arises  before or after the Agreement  Date),  or
         (c)  arises  in  connection   with   Microsoft's   performance  of  its

<PAGE>

         obligations under Article VIII hereof, and Microsoft will indemnify and
         hold  Company  harmless  from and against  any costs,  damages and fees
         reasonably  incurred by Company,  including  but not limited to fees of
         attorneys and other professionals, that are attributable to such claim.
         Company  shall:  (i)  provide  Microsoft  reasonably  prompt  notice in
         writing  of any such  claim or action  and  permit  Microsoft,  through
         counsel mutually  acceptable le to Microsoft and Company, to answer and
         defend  such claim or action;  and (ii)  provide  Company  information,
         assistance and authority,  at Microsoft's expense, to help Microsoft to
         defend such claim or action.  Microsoft will not be responsible for any
         settlement made by Company without Microsoft's written permission which
         permission will not be unreasonably withheld.

         9.2.2  Company  shall  have the night to employ  separate  counsel  and
         participate  in the  defense  of any  claim or action  covered  by this
         Section  9.2.  Microsoft  shall  reimburse  Company upon demand for any
         payments made or loss suffered by it at any time after the date hereof,
         based  upon the  judgment  of any court of  competent  jurisdiction  or
         pursuant to a bona fide compromise or settlement of claims, demands, or
         actions, in respect to any damages related to any claim or action under
         this Section 9.2.

         9.2.3 Company may not settle any claim or action under this Section 9.2
         on  Microsoft's  behalf  without first  obtaining  Microsoft's  written
         permission,  which permission will not be unreasonably withheld. In the
         event Microsoft and Company agree to settle a claim or action,  Company
         agrees  not  to  publicize  the  settlement   without  first  obtaining
         Microsoft's   written   permission,   which   permission  will  not  be
         unreasonably withheld.

9.3      LIMITATIONS OF LIABILITY.

         9.3.1  NEITHER PARTY SHALL  BE  LIABLE  FOR ANY  INDIRECT,  INCIDENTAL,
              CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES, EVEN IF SUCH PARTY HAS
              BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

         9.3.2 NOTWITHSTANDING  ANYTHING TO THE CONTRARY IN THIS AGREEMENT,  THE
         PARTIES  AGREE  THAT  EACH OF  THEIR  AGGREGATE  LIABILITY  UNDER  THIS
         AGREEMENT,  INCLUDING WITHOUT  LIMITATION  ARTICLES V AND VI, SHALL NOT
         EXCEED TWO MILLION AND FIVE HUNDRED THOUSAND  DOLLARS  ($2,500,000.00).
         EACH PARTY  AGREES  AND  UNDERSTANDS  THAT THE RESULT OF THE  FOREGOING
         LIMITATION ON LIABILITY AND INDEMNIFICATION MAY PREVENT SUCH PARTY FROM
         RECOVERING LOSSES OR DAMAGES IN CONNECTION WITH OTHERWISE VALID CLAIMS.

                                    ARTICLE X

                                  MISCELLANEOUS

10.1 NOTICES.  All notices and requests in connection  with this Agreement shall
be deemed given as of the day they are received  either by  messenger,  delivery
service, or in the United States of America mails, postage prepaid, certified or
registered, return receipt requested, and addressed as follows:

To Microsoft:                                      To Company:

Microsoft Corporation                              Proginet Corporation
One Microsoft Way                                  200 Garden City Plaza
Redmond, WA 98052-6399                             Garden City, NY 11 5 3 0
Attention: General Manager                         Attention: Kevin M. Kelly
SNA Server Development

<PAGE>

Phone: (206) 882-8080  Phone:            (516)  Phone:  (516) 248-2000
248-2000
Fax: (206) 936-7329                             Fax: (516) 248-3360

Copy to:                                        Copy to:
Law & Corp. Affairs                             Parker Chapin LLP
Fax: (206) 869-1327                             405 Lexington Avenue
                                                New York, NY 10174
                                                Attention: James Alterbaum, Esq.

                                                Phone:(212) 704-6000
                                                Fax: (212) 704-6288

or  to  such  other  address  as  a  party may designate pursuant to this notice
provision

10.2 DISPUTE RESOLUTION. ANY DISPUTE,  CONTROVERSY OR CLAIM ARISING OUT OF OR IN
CONNECTION  WITH  THIS  AGREEMENT,  OR ANY  BREACH  THEREOF,  SHALL  BE  SETTLED
EXCLUSIVELY  AND  FINALLY  BY  ARBITRATION  IN  ACCORDANCE  WITH THE  COMMERCIAL
ARBITRATION  RULES OF THE AMERICAN  ARBITRATION  ASSOCIATION,  AND JUDGMENT UPON
SUCH AN AWARD  RENDERED  BY THE  ARBITRATOR  MAY BE ENTERED IN ANY COURT  HAVING
JURISDICTION  THEREOF.  A  DECISION  OF THE  ARBITRATOR  SHALL  BE  BINDING  AND
CONCLUSIVE  ON THE PARTIES  HERETO AND SHALL NOT BE SUBJECT TO ANY  APPEAL.  ALL
LIMITATIONS OF LIABILITY SET FORTH IN THIS AGREEMENT,  INCLUDING BUT NOT LIMITED
TO THE  LIMITATIONS  SET FORTH IN ARTICLE IX HEREOF,  SHALL BE BINDING AND GIVEN
FULL  FORCE AND EFFECT IN ANY SUCH  ARBITRATION.  THE FEES AND  EXPENSES  OF ANY
ARBITRATION HEREUNDER, INCLUDING OF THE ARBITRATOR, SHALL BE ADVANCED EQUALLY BY
THE PARTIES,  AND EACH PARTY SHALL BE RESPONSIBLE FOR ITS OWN ATTORNEYS' FEES IN
CONNECTION ` WITH AN ARBITRATION.  NOTWITHSTANDING  THE FOREGOING,  THE PARTIES'
FINAL  RESPONSIBILITY  FOR ALL ARBITRATION FEES AND RELATED  ATTORNEYS' FEES AND
EXPENSES SHALL BE SUBJECT TO THE FINAL DECISION OF THE ARBITRATOR.

10.3  Assignment.  THIS AGREEMENT SHALL BE BINDING UPON AND INURE TO THE BENEFIT
OF EACH PARTY'S  RESPECTIVE  SUCCESSORS AND LAWFUL ASSIGNS;  PROVIDED,  HOWEVER,
THAT DURING THE  TRANSITION  PERIOD COMPANY MAY NOT ASSIGN THIS AGREEMENT OR ANY
OF ITS RIGHTS OR OBLIGATIONS

under this Agreement, in whole or in part, without the prior written approval of
Microsoft,  which  consent  will not be  unreasonably  withheld or delayed.  For
purposes of this Agreement, an `6assigmnent" by Company under this Section shall
be deemed to include, without limitation, the following: (a) a merger of Company
with  another  party,  except where  Company is the  surviving  entity;  (b) any
transaction or series of  transactions  whereby a third party acquires direct or
indirect  power to control the  management  and  policies  of  Company,  whether
through the acquisition of voting securities, by contract, or otherwise; (c) the
sale or other  transfer of more than fifty  percent  (50%) of  Company's  assets
(whether in a single transaction or series of transactions), or (d) the transfer
of any rights or obligations under this agreement in the course of a liquidation
or other similar reorganization of Company.

         7.2.6  10.4  Construction.  IF FOR  ANY  REASON  A COURT  OF  COMPETENT
         JURISDICTION FINDS ANY PROVISION OF THIS AGREEMENT, OR PORTION THEREOF,
         TO BE  UNENFORCEABLE,  THAT PROVISION OF THE AGREEMENT WILL BE ENFORCED
         TO THE  MAXIMUM  EXTENT  PERMISSIBLE  SO AS TO EFFECT THE INTENT OF THE
         PARTIES,  AND THE  REMAINDER OF THIS  AGREEMENT  WILL  CONTINUE IN FULL
         FORCE AND EFFECT.  FAILURE BY EITHER PARTY TO ENFORCE ANY  PROVISION OF
         THIS  AGREEMENT  WILL NOT BE DEEMED A WAIVER OF FUTURE  ENFORCEMENT  OF
         THAT OR ANY OTHER PROVISION.  THIS AGREEMENT HAS BEEN NEGOTIATED BY THE
         PARTIES AND THEIR RESPECTIVE  COUNSEL AND WILL BE INTERPRETED FAIRLY IN
         ACCORDANCE WITH ITS TERMS AND WITHOUT ANY STRICT  CONSTRUCTION IN FAVOR
         OF OR AGAINST EITHER PARTY.
         7.2.7 10.5 Entire  AGREEMENT.  THIS  AGREEMENT  DOES NOT CONSTITUTE AN
         OFFER BY MICROSOFT AND IT SHALL NOT BE EFFECTIVE  UNTIL SIGNED BY BOTH
         PARTIES.  THIS AGREEMENT  CONSTITUTES THE ENTIRE AGREEMENT BETWEEN THE
         PARTIES WITH RESPECT TO THE SUBJECT MATTE

<PAGE>

          HEREOF  AND MERGES ALL PRIOR AND  CONTEMPORANEOUS  COMMUNICATIONS.  IT
          SHALL  NOT BE  MODIFIED  EXCEPT  BY A  WRITTEN  AGREEMENT  DATED ON OR
          SUBSEQUENT TO THE  AGREEMENT  DATE AND SIGNED ON BEHALF OF COMPANY AND
          MICROSOFT BY THEIR RESPECTIVE DULY AUTHORIZED REPRESENTATIVES.

[remainder of page intentionally left blank]

20

     IN WITNESS VMEREOF,  the parties have entered into this Agreement as of the
Agreement Date written above.

MICROSOFT CORPORATION                      PROGINET CORPORATION

-------------------------------------      ------------------------------------
By (Sign)                                  By (Sign)

-------------------------------------      ------------------------------------
Name (Print)                               Name (Print)

-------------------------------------      ------------------------------------
Title                                      Title

-------------------------------------      ------------------------------------
Date                                       Date

Solely for purposes of Section 6.2 of this  Agreement,  the parties  whose names
are set forth below  hereby agree to be bound by the  undertakings  set forth in
Section 6.2 of this Agreement.

--------------------------------      ----------------------------------------
Kevin M. Kelly                        Joseph T. Mohen

--------------------------------
James F. Kelly

                                    EXHIBIT A

                                 TRANSITION PLAN

During the Initial  Transition  Period,  Microsoft  will continue to resolve all
customer  problems  concerning  the software  components of the Acquired  Assets
(referred to herein as the "Acquired Software") that have

<PAGE>

been  previously  opened  prior to the  Closing  Date.  Also  during the Initial
Transition Period,  Microsoft will continue to accept new problems directly from
customers until all customers have been provided with instructions for obtaining
support from Company.  Microsoft will provide assistance and training to Company
as reasonably necessary for Company to learn the Acquired Software and to create
the  necessary  infrastructure  to support  customers.  Such  activities  during
Initial  Transition  Period will involve one visit by Microsoft staff to Company
and by Company  staff to Microsoft,  as  necessary.  Company will pay all out of
pocket cost incurred by Microsoft for any business trips,  materials etc. during
the Transition Period.

During the Follow-On Transition Period,  Company will assume  responsibility for
customer  support  for the  Acquired  Software as used on the MVS  Platform  and
Windows Platforms. Microsoft agrees to provide support for the Acquired Software
as used on all other  platforms  on which the  Acquired  Software is intended to
operate  as of the  Closing  Date at no charge  to  Company,  provided  that the
initial customer  support incident is logged through Company.  The parties agree
to the payment  arrangements  set forth in Article  VIII of the  Agreement  with
respect to customer support during the Follow-On Transition Period.

The following activities will occur during the Initial Transition Period:

1. Microsoft will send technical staff to Company site in Long Island to:

         A. ASSIST IN THE  INSTALLATION  OF THE  ACQUIRED  SOFTWARE ON COMPANY'S
         MAINFRAME,  INCLUDING ALL OF THE OPTIONAL  COMPONENTS.  MICROSOFT  WILL
         CONDUCT  TRAINING  SESSIONS  AT  COMPANY  ON THE MVS,  LJNIX,  WINDOWS,
         NETWARE, AND OTHER VERSIONS OF THE ACQUIRED SOFTWARE, WITH THE EMPHASIS
         BEING ON THE MVS AND WINDOWS PLATFORM VERSIONS.

         B. WORK WITH COMPANY TO PREPARE COMPANY  MAINFRAME  LABORATORY FOR THE
         SUPPORT OF THE ACQUIRED SOFTWARE,  INCLUDING THE CONFIGURATION OF DB2,
         IMS-TM,  CICS,  AND  THE  COBOL  AND  PL/I  COMPILER  PROCEDURES.  THE
         OBJECTIVE  TO BE  ACCOMPLISHED  IS TO  ELIMINATE  THE  NEED TO USE THE
         SUNGUARD  SERVICE  BUREAU AND  INSTEAD USE  COMPANY  MAINFRAME  IN ITS
         PLACE.  ALL THE MAINFRAME  SUPPORT FOR THE ACQUIRED  SOFTWARE IS TO BE
         REMOVED FROM  SUNGUARD TO COMPANY  WITHIN  NINETY  (90)DAYS  AFTER THE
         CONTRACT IS EXECUTED.

         C. MICROSOFT WILL PROVIDE TRAINING CLASSES IN THE ACQUIRED SOFTWARE.

2.   Microsoft will provide machine  readable copies of its problem database for
     the Acquired Software to Company during the Transition Period.
3.   Microsoft agrees to provide the Acquired  Software test cases and automated
     testing to Company pursuant to Article 11 of the Agreement.
4.   Microsoft will provide the  development  history  database for the Acquired
     Software,  as  available,  to Company  which would  include all current and
     former versions of the Acquired Software.
5.   Company   will  provide free  access  to  its  mainframe  for  Microsoft to
     support Company with the Acquired Software.

The following activities will occur during the Follow-On Transition Period:

1.   Company will receive all customer  support  calls on all platforms and will
     be responsible  for making initial  diagnoses.  Company will be responsible
     for supporting the MVS Platform and Windows Platforms.  Microsoft will have
     the responsibilities  defined in paragraph 3 below and Company will forward
     information  from  customer  calls on such issues as per  paragraph 3 below
     that Company desires Microsoft to support.
2.   All problem tracking will be done through Company's new Internet based call
     tracking system. During this period, Company,  Microsoft and customer staff
     can enter problems into the system, using their own Internet browsers.
3.   Microsoft will be responsible  for support for Acquired  Software for Other
     Platforms as provided  herein  after  Company  staff or support  system has
     received the problem report from the customer and diagnosed it as involving
     such versions of Acquired  Software.  Company  acknowledges and agrees that
     Microsoft  will not be responsible  for providing any customer  support for
     versions of the Acquired  Software  which  operate on any new platform as a
     result of Company's  development  efforts after the Closing Date,  and also
     that  Microsoft will not be able to provide  customer  support in the event
     Company makes substantial modifications to the Acquired Software during the
     Transition  Period,

<PAGE>

     notwithstanding Company's delivery of Source Code to such versions pursuant
     to Section 8.1.4 of the Agreement.
4.   Microsoft and Company will work in good faith to jointly develop,  agree on
     and implement additional procedures related to support resolution, customer
     communication etc.

                                    EXHIBIT B

                               ASSUMED OBLIGATIONS

1) Customer agreements (listed in Attachment I to this Exhibit B)

2)       Distribution agreements (listed in Attachment 2 to this Exhibit B)

3) XVT Software  License  Agreement  with XVT Software,  Inc.,  dated August 22,
1996.

                                       B-1

<TABLE>
<CAPTION>

                            Attachment 1 to Exhibit B
                               Customer Agreements

------------------------------------------------------------------------------------------------------------
<S>                                         <C>                      <C>              <C>
Customer Name                               Billing City             Billing State     Billing Country
------------------------------------------------------------------------------------------------------------
American Management Systems                 Fairfax                  VA
------------------------------------------------------------------------------------------------------------
AMP Society                                 North Sydney                               AUSTRALIA
------------------------------------------------------------------------------------------------------------
Anderson Consulting                         St. Louis                MO
------------------------------------------------------------------------------------------------------------
Anderson Consulting/St of CT                Chicago                  IL
------------------------------------------------------------------------------------------------------------
AT&T-MVS                                    Maitland                 FL
------------------------------------------------------------------------------------------------------------
AT&T-non MVS                                Maitland                 FL
------------------------------------------------------------------------------------------------------------
AT&T - ITS                                  Maitland                 FL
------------------------------------------------------------------------------------------------------------
AvNet                                       Chandler                 AZ
------------------------------------------------------------------------------------------------------------
Blue Cross BS Tenn                          Chatanooga               TN
------------------------------------------------------------------------------------------------------------
BMW of North America                        Woodcliff Lake           NJ
------------------------------------------------------------------------------------------------------------
California PERS                             Sacramento               CA
------------------------------------------------------------------------------------------------------------
Carlson Companies Inc                       Plymouth                 MN
------------------------------------------------------------------------------------------------------------
Case Consult International                  Gent Drougen                               BELGIUM
------------------------------------------------------------------------------------------------------------
Case Consult/Sony                           B-1410 Waterloo                            Belgium
------------------------------------------------------------------------------------------------------------
Case Consult/Winterthur                     B- 1 41 0 Waterloo                         BELGIUM
------------------------------------------------------------------------------------------------------------
CDR                                         Surrey                                     UK
------------------------------------------------------------------------------------------------------------
CDR/British Aerospace                       Surrey                                     UK
------------------------------------------------------------------------------------------------------------
CDR/British Library                         Surrey                                     UK
------------------------------------------------------------------------------------------------------------
CDR/British Telecom                         Surrey                                     UK
------------------------------------------------------------------------------------------------------------
CDR/Integrated Medical Solutions            MKI4601                                    UK
------------------------------------------------------------------------------------------------------------
CDR/ITSA                                    Surrey                                     UK
------------------------------------------------------------------------------------------------------------

<PAGE>

------------------------------------------------------------------------------------------------------------
CDR/M&G                                     Surrey                                     UK
------------------------------------------------------------------------------------------------------------
CDR/Mercury                                 Surrey                                     UK
------------------------------------------------------------------------------------------------------------
CDR/Prudential                              Surrey                                     UK
------------------------------------------------------------------------------------------------------------
Chubb                                       Branchburg               NJ
------------------------------------------------------------------------------------------------------------
Cimage Enterprise Sys Ltd                   Ann Arbor                ml
------------------------------------------------------------------------------------------------------------
Citibank                                    New York                 NY
------------------------------------------------------------------------------------------------------------
Citibank Student Loan Corp.                 Pittsford                NY
------------------------------------------------------------------------------------------------------------
CPI/Alltel                                  Jacksonville             FL
------------------------------------------------------------------------------------------------------------
CSC Australia Ply Ltd                       North Sydney                               AUSTRALIA
------------------------------------------------------------------------------------------------------------
Cummins Engine Co                           Columbus                 IN
------------------------------------------------------------------------------------------------------------
Deloitte & Touche/St of Delaware            New Castle               DE
------------------------------------------------------------------------------------------------------------
Detroit Edison                              Detroit                  MI
------------------------------------------------------------------------------------------------------------
Distributed Solutions Inc                   San Francisco            CA
------------------------------------------------------------------------------------------------------------
Documentum                                  Pleasanton               CA
------------------------------------------------------------------------------------------------------------
Dr. Holtman/BV                              Hamburg                                    GERMANY
------------------------------------------------------------------------------------------------------------
DSI / Levi Strauss & Co.                    San Francisco            CA
------------------------------------------------------------------------------------------------------------
EDS                                         Plano                    TX
------------------------------------------------------------------------------------------------------------
EDS/Nad Car Rental                          Plano                    TX
------------------------------------------------------------------------------------------------------------
Fujitsu AustIASS                            Chatswood NSW                              AUSTRALIA
------------------------------------------------------------------------------------------------------------
Household                                   Wood Date                IL
------------------------------------------------------------------------------------------------------------
HWACOM(Rose Data Systems)                   San Jose                 CA
------------------------------------------------------------------------------------------------------------
IBP                                         Dakota City              NE
------------------------------------------------------------------------------------------------------------
Imperial 00                                 Toronto                  Ontario           CANADA
------------------------------------------------------------------------------------------------------------
Intel Corporation                           Folsom                   CA
------------------------------------------------------------------------------------------------------------
Isis                                        Marlborough              MA
------------------------------------------------------------------------------------------------------------
ITT Hartford                                Hartford                 CT
------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>

                                     B-Al. I

                            Attachment 1 to Exhibit B
                               CUSTOMER AGREEMENTS

------------------------------------------------------------------------------------------------------------
<S>                     <C>                                      <C>                      <C>
JVL                     Paris                                     FRANCE
------------------------------------------------------------------------------------------------------------
JVL / BMW France        Paris                                     FRANCE
                                                                  Paris
                                                                  FRANCE
------------------------------------------------------------------------------------------------------------
JVL / Crica             Paris                                     FRANCE
                                                                  Paris
                                                                  FRANCE
------------------------------------------------------------------------------------------------------------
Kaiser Aluminum         Spokane              WA                   Spokane                       WA
------------------------------------------------------------------------------------------------------------
Lexis-Nexis             Miamisburg           OH                   Miamisburg                    OH
 -----------------------------------------------------------------------------------------------------------
Milestone / TK          Hamburg                                   Germany
Insurance                                                         Hamburg
                                                                  GERMANY
------------------------------------------------------------------------------------------------------------
Navistar International  Oak Brook Terrace    IL                   Oak Brook Terrace             IL
 -----------------------------------------------------------------------------------------------------------
Open Environment Corp   Dallas               TX                   Dallas                        TX
(OEC)
------------------------------------------------------------------------------------------------------------
Oracle/Macroview/EDI    North Point                               HONG KONG
                                                                  North Point
                                                                  HONG KONG
------------------------------------------------------------------------------------------------------------
Oracle/Macroview/HK     North Point                               HONG KONG
lmm.                                                              North Point
                                                                  HONG KONG
------------------------------------------------------------------------------------------------------------
Peregrine               San Diego            CA                   San Diego                     CA

------------------------------------------------------------------------------------------------------------
Praxis                  Alexandria           VA                   Alexandria                    VA

------------------------------------------------------------------------------------------------------------
Praxis/BDM Federal,     Kettering            OH                   Kettering                     OH
Inc
------------------------------------------------------------------------------------------------------------
Praxis/Computer         Alexandria           VA                   Alexandria                    VA
Sciences
------------------------------------------------------------------------------------------------------------
Praxis/DISA -Westhem    Alexandria           VA                   Alexandria                    VA

------------------------------------------------------------------------------------------------------------
PSE&G                   Newark               NJ                   Newark                        NJ
------------------------------------------------------------------------------------------------------------

<PAGE>

------------------------------------------------------------------------------------------------------------
Selesta Gestione        Torino                                    ITALY
Centri                                                            Torino
                                                                  ITALY
------------------------------------------------------------------------------------------------------------
Selesta/Finsiel         Torino                                    ITALY
                                                                  Torino
                                                                  ITALY
------------------------------------------------------------------------------------------------------------
SHL System House        Ottawa               Ontario
                                                                  Ottawa                        Ontario
------------------------------------------------------------------------------------------------------------
SHL/MCI                 Cerritos             CA
                                                                  Cerritos                      CA
------------------------------------------------------------------------------------------------------------
Simba/PageAhead         Seattle              WA
                                                                  Seattle                      WA
------------------------------------------------------------------------------------------------------------
SNET/OEC                New Haven            CT
                                                                  New Haven                     CT
------------------------------------------------------------------------------------------------------------
SNS (IAS Dist)
------------------------------------------------------------------------------------------------------------
SW Bell Mobile          Dallas               TX
                                                                  Dallas                       TX
------------------------------------------------------------------------------------------------------------
Tadiran                 Givat Shmuel                              ISRAEL
                                                                  Givat Shmuel
                                                                  ISRAEL
------------------------------------------------------------------------------------------------------------
TCI/Vartec              Denver               CO
                                                                  Denver                       co
------------------------------------------------------------------------------------------------------------
Teranet                 Whitby               Ontario              Canada
                                                                  Whitby                       Ontario
                                                                  Canada
------------------------------------------------------------------------------------------------------------
Transaction             Santa Monica         CA
Technology Inc.                                                   Santa Monica                 CA
------------------------------------------------------------------------------------------------------------
Transquest Into Sol     Atlanta              GA
                                                                  Atlanta                      GA
------------------------------------------------------------------------------------------------------------
TRW                     Oakland              CA
                                                                  Oakland                      CA
------------------------------------------------------------------------------------------------------------
UCC                     Seodaemoon-Ku        Seol                 KOREA
                                                                  Seodaemoon-Ku                Seoul
                                                                  KOREA
------------------------------------------------------------------------------------------------------------
Unify                   Sacramento           CA
                                                                  Sacramento                   CA
------------------------------------------------------------------------------------------------------------
Uniplex Limited         Hertfordshire                             UK
                                                                  Hertfordshire
                                                                  UK
------------------------------------------------------------------------------------------------------------
United Healthcare       Hartford             CT
Services                                                          Hartford                     CT
------------------------------------------------------------------------------------------------------------
United Insurance        Chicago              IL
Chicago
IL
------------------------------------------------------------------------------------------------------------
United Technologies /   Bloomfield           CT
Otis Elev                                                         Bloomfield                   CT
------------------------------------------------------------------------------------------------------------
Unitel Comm             Toronto              Ontario              CANADA
                                                                  Toronto                      Ontario
                                                                  ICANADA
------------------------------------------------------------------------------------------------------------
Wang Labs               Lowell               MA
                                                                  Lowell                       MA
                                                                  I
------------------------------------------------------------------------------------------------------------

</TABLE>

<TABLE>
<CAPTION>

                                     B-Al.2
                            Attachment 2 to Exhibit B
                             DISTRIBUTION AGREEMENTS

------------------------------------------------------------------------------------------------------------
<S>                                             <C>
  CUSTOMER NAME                                  TYPE OF AGREEMENT
------------------------------------------------------------------------------------------------------------
  Case Consult International                     Distributor, International
------------------------------------------------------------------------------------------------------------
  CDR                                            Distributor, International
------------------------------------------------------------------------------------------------------------
  Cimage Enterprise Sys Ltd                      ISV
------------------------------------------------------------------------------------------------------------
  Documentum                                     ISV
------------------------------------------------------------------------------------------------------------
  Dr. Holtman & Partners GMBH                    Consulting and tech support to the customers of Milestone
------------------------------------------------------------------------------------------------------------
  JVL                                            Distributor, International
------------------------------------------------------------------------------------------------------------
  Milestone/TK Insurance                         ISV
------------------------------------------------------------------------------------------------------------
  Open Environment Corp (OEC)                    Reseller
------------------------------------------------------------------------------------------------------------
  Oracle/Macroview                               Distributor, International
------------------------------------------------------------------------------------------------------------
  Peregrine                                      SW LIC/ISV
------------------------------------------------------------------------------------------------------------
  Praxis                                         Distributor, Federal
------------------------------------------------------------------------------------------------------------
  Selesta Gestione Centri                        Distributor, International
------------------------------------------------------------------------------------------------------------
  SHL System House                               Reseller
------------------------------------------------------------------------------------------------------------
  SNS ([AS Dist)                                 Distributor, International
------------------------------------------------------------------------------------------------------------
  Tadiran                                        Distributor, International
------------------------------------------------------------------------------------------------------------
  TCI/Vartec                                     LSV
------------------------------------------------------------------------------------------------------------
  TRW                                            ISV
------------------------------------------------------------------------------------------------------------

<PAGE>

------------------------------------------------------------------------------------------------------------

  UCCc                                           Distributor, International
------------------------------------------------------------------------------------------------------------
  Unify                                          SW Lic/ISV
------------------------------------------------------------------------------------------------------------
  Wang Labs                                      SW Lic/ISV
------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>

                                      B-A2

<PAGE>

                                    EXHIBIT C
                          JOINT SALES AND SUPPORT PLAN

Microsoft and Company have the common goal of making available the best
solutions for integrating

BackOffice with IBM mainframes.  Accordingly, Microsoft and Company agree to the
following:

1.   Company executive management and VP of Microsoft's DB and TP division agree
     to  meet,   and  develop  ways  to  work  together  to  leverage  the  core
     competencies and strengths of both  organizations to support the enterprise
     customers.
2.   Microsoft  and the Company will jointly  inform  TransAccess  customers and
     distributors  (as  identified  in Exhibit  B), for both  United  States and
     international,  along  guidelines  determined by appropriate  Microsoft and
     Company management.

3.   Microsoft and Company agree to jointly collaborate  consistent with the
     terms of this agreement, as follows:

         a. Microsoft will provide introduction to the large systems integrators
         that have been involved  with the  TransAccess  business,  as Microsoft
         deems   appropriate.
         b.   Microsoft   will   provide   Company   with
         introductions,  as  appropriate,  to contacts  within  Microsoft  field
         organization   that  deal  with  integration  of  BackOffice  with  IBM
         mainframes.
         c. According to normal and customary Microsoft practice, Microsoft may
         provide   Company  with  references  of  solution   providers   and/or
         customers,  as  appropriate,  who express an  interest in  integrating
         BackOffice  with  IBM  mainframes,  and  Microsoft  may  also  provide
         solution providers and/or customers with references to the Company.
         d. Company  will be invited to attend,  as  appropriate,  at Microsoft
         Consulting  Services and SE force training events,  in order to ensure
         that MCS and SE staff are aware of Company  solutions  that  integrate
         BackOffice with IBM mainframes.
         e. Microsoft and Company agree to have quarterly  meetings  during the
         18-month  transition period to review  marketing/sales  activities and
         determine future activities.

<PAGE>

                                    EXHIBIT D

                           CUSTOMER RELATIONS PROGRAM

To effectively  manage  customer  relationships  and prospects and to reasonably
assure a high level of comfort and satisfaction for customers, the parties agree
to engage in the following Customer Relations Program.

I. Joint  Letter to  Customers  - A joint  letter  will be sent to all  existing
customers,  as well as those  designated to be in the pipeline.  The letter will
contain the following points:

         A.    Nature of the transaction.
         B.    Microsoft's and Company's strong ongoing relationship.
         C.    Invitation to the upcoming  joint event with  Microsoft and
               Company.
         D.    Detailing that Microsoft and Company are developing integration
               solutions.

II. Joint Event for  Microsoft  and Company - Perhaps an addition to an existing
planned  Microsoft  function  (PDC,  Viper/Cedar  Technology  Preview,  or sales
meeting),  to inform  customers face to face about the transition and the strong
relationship  between Microsoft and Company.  Alternative  approach by Microsoft
would be acceptable.

III.  Selected Joint Visits - A specific group of customers to be jointly agreed
upon by the parties will be jointly visited by Company  Management and Microsoft
personnel, to address any concerns about the transition. The Microsoft personnel
should  include the current  Microsoft  Sales Team, as well as the Major Account
Manager of the specific area.

IV.  Microsoft  Manager - Microsoft  will designate a manager at Microsoft to be
responsible to work with Company to assure  quality and timely  service  during,
the transition period.

<PAGE>

                                    EXHIBIT E
                                     FORM OF
                              INVESTMENT AGREEMENT

     INVESTMENT AGREEMENT  ("Investment  Agreement") entered into as of the 17th
     day of December between  Microsoft  Corporation,  a Washington  corporation
     located at One Microsoft Way, Redmond,  WA 98052 ("Microsoft") and Proginet
     Corporation,  a Delaware  corporation  located at 200  Garden  City  Plaza,
     Garden City, New York 11530 ("Company").

                                    RECITALS
         A. Microsoft and Company have entered into an Asset Purchase  Agreement
         of even date herewith (the "ASSET  PURCHASE  AGREEMENT").  B. The Asset
         Purchase  Agreement provides that Microsoft will sell certain assets to
         Company.  In exchange for the assets,  Company  will assume  certain of
         Microsoft's liabilities and issue shares of Company's common stock, par
         value  $.00I  (the   "SHARES")  as  specified  in  the  Asset  Purchase
         Agreement.  C. All  capitalized  terms  shall have the same  meaning as
         defined in the Asset  Purchase  Agreement  unless  otherwise  indicated
         herein.

         INTENDING TO BE LEGALLY BOUND, and in consideration of the premises and
         the  mutual  representations,   warranties,  covenants  and  agreements
         contained herein, Microsoft and Company hereby agree as follows:

                                    AGREEMENT

         1.       Microsoft Representations and Agreements.  Microsoft hereby
         represents, warrants and agrees that:

         1.1  Investor Status. Microsoft: (i) is (a) a "sophisticated purchaser"
              as  that  term  is  defined  in  Appendix  A to  Form  20A  of the
              Securities Act (British  Columbia) 1985 (the "BC Act"), and (b) an
              "accredited investor" as that term is defined in Rule 501(a)(5) of
              Regulation D of the Securities Act of 1933 (the "1933 Act"),  (ii)
              is  acquiring  the  Shares  for its  own  account,  (iii)  has the
              knowledge and experience in financial and business  matters and is
              capable of  evaluating  the  merits  and risks of the  prospective
              investment; and (iv) does not intend to make a distribution of the
              Shares or otherwise act as an "underwriter"  within the meaning of
              Section 2(11) of the 1933 Act.
         1.2  Company Disclosure Documents. Microsoft has received copies of all
                 of Company's disclosure  documents  that have been filed  with
the  British Columbia   Securities   Commission  ("BCSC")  since  November  1,
1995,  and  a description  of the  Shares  to be  issued  pursuant  to the terms
of the Asset Purchase Agreement.
         1.3  Transfer Restrictions. Microsoft agrees that any and all transfers
              of Shares received pursuant to the Asset Purchase Agreement, shall
              be limited as follows:

              (a) No Shares may be sold or  otherwise  transferred  by Microsoft
                  prior to the 18-Month  Anniversary  Date.
              (b) During  the  six-month  period after the 18-Month  Anniversary
                  Date,   Microsoft   shall be permitted, but not obligated, to
                  sell:  (i)  the  100,000  Shares   initially  issued  pursuant
                  to Section  3.2 of the Asset Purchase Agreement.

         (c) During the six month  period  beginning 24 months after the Closing
         Date, Microsoft shall be permitted, but not obligated, to sell: (a) any
         of the Shares  described in Section  1.3(b) above,
<PAGE>

          and (ii) one-third (1/3) of the Shares issuable to Microsoft  pursuant
          to Sections 3.1.2 and 3.2 of the Asset Purchase Agreement.

          (d) During the six month period  beginning 30 months after the Closing
          Date,  Microsoft shall be permitted,  but not obligated,  to sell: (a)
          any of the  Shares  described  in Section  1.3 (b) above,  and (ii) an
          additional  one-third  (1/3)  of  the  Shares  issuable  to  Microsoft
          pursuant to  Sections  3.1.2 and 3.2 of the Asset  Purchase  Agreement
          (i.e., a cumulative total of 2/3 of such latter categories of Shares).

          (e) On the 36-month  anniversary  date of the Closing Date, all of the
          Shares issued to Microsoft pursuant to the terms of the Asset Purchase
          Agreement shall be freely  saleable,  subject only to the restrictions
          of Section 1.4 below, by Microsoft

              1.4 Restrictions. Subject to the restrictions contained in Section
1.3, Microsoft will not offer to sell, exchange,  transfer,  pledge or otherwise
dispose of any of the Shares  unless at such time at least one of the  following
is satisfied:

     (a) a registration statement under the BC Act or the 1933 Act, whichever is
applicable,  covering the Shares  proposed to be sold,  transferred or otherwise
disposed of,  describing the manner and terms of the proposed sale,  transfer or
other disposition,  and containing a current  prospectus,  shall have been filed
with the BCSC or the SEC,  whichever is  applicable,  and made  effective  under
either the BC Act  (through  the  issuance of a receipt by the BCSC) or the 1933
Act;

     (b) such transaction shall be permitted pursuant to the provisions of Rule
      144 under the 1933 Act ("RULE 144");

          (c) counsel to Microsoft  reasonably  acceptable to Company shall have
     advised  Microsoft that no registration  under the BC Act or 1933 Act would
     be  required  in  connection  with the  proposed  sale,  transfer  or other
     disposition; or

         (d) an  authorized  representative  of the BCSC or the SEC  shall  have
     rendered  written  advice to  Microsoft  (sought by Microsoft or counsel to
     Microsoft after prior notice to Company) to the effect that the BCSC or the
     SEC would  take no  action,  or that the staff of the BCSC or the SEC would
     not  recommend  that the  BCSC or SEC  take  action,  with  respect  to the
     proposed sale, transfer or other disposition if consummated.

         1.5 Restrictive  Legend(s).  All  certificates  representing the Shares
     deliverable to Microsoft  pursuant to the Asset Purchase  Agreement and any
     certificates  subsequently  issued with respect  thereto or in substitution
     therefor, unless a sale, transfer or other disposition is executed pursuant
     to one or more of the alternative conditions set forth in Section 1.4 shall
     have occurred,  or unless the conditions of paragraph (k) of Rule 144 shall
     have been satisfied, and shall bear a legend substantially as follows:

         "The shares  represented by this certificate may not be offered,  sold,
     pledged, transferred or otherwise disposed of except in accordance with the
     requirements of the Securities Act (British Columbia) 1985, as amended, and
     the other conditions specified in that certain Investment Agreement, a copy
     of which may be inspected by the holder of this  certificate at the offices
     of Proginet Corporation, 200 Garden City Plaza, Suite 220, Garden City, New
     York 11530, or Proginet  Corporation  will furnish,  without charge, a copy
     thereof to the holder of this certificate upon written request therefor."

     Should the Shares be registered with the Securities and Exchange Commission
     during the 30 months  after the Closing  Date,  Microsoft  shall  return to
     Company its Shares containing the above legend.

                                       E-2

     Company shall promptly  replace these Shares with the same number of Shares
bearing the following

     legend:

<PAGE>

              "The shares  represented by this  certificate  may not be offered,
              sold,  pledged,  transferred  or  otherwise  disposed of except in
              accordance  with the  requirements  of the Securities Act (British
              Columbia) 1985, as amended,  and the other conditions specified in
              that  certain  Investment  Agreement,  a  copy  of  which  may  be
              inspected  by the  holder of this  certificate  at the  offices of
              Proginet  Corporation,  200 Garden City Plaza,  Suite 220,  Garden
              City,  New York  11530,  or  Proginet  Corporation  will  furnish,
              without charge,  a copy thereof to the holder of this  certificate
              upon written request therefor."

     Company,  at its  discretion,  may cause a stop transfer order to be placed
     with its transfer  agent(s) with respect to the certificates for the Shares
     but not as to the  certificates for any part of the Shares as to which said
     legend is no longer  appropriate  when one or more of the  alternatives set
     forth  in  Section  1.4  shall  have  been  satisfied  and the  contractual
     agreement  not to  engage  in Sales as set  forth in  Section  1.3 has been
     satisfied or waived by Company.  Company covenants that upon the request of
     Microsoft,  it will  remove  said  legend  when a sale,  transfer  or other
     disposition  is executed in  compliance  with  Sections  1.3 and one of the
     alternatives in Section 1.4.

         1.6 Observation of BC and 1933 Acts.  Microsoft will observe and comply
     with the BC Act and 1933 Act,  whichever  is  applicable,  and the  General
     Rules and  Regulations  thereunder,  as now in  effect  and as from to time
     amended and including those hereafter enacted or promulgated, in connection
     with  any  offer,  sale,  pledge,  transfer  or  other  disposition  of the
     Microsoft  Common  Shares  or any part  thereof  including  the  prospectus
     delivery requirements of the BC and 1933 Acts.

         2. REGISTRATION.  Company shall have the obligation,  at Company's sole
         expense,  to register the Shares issued to Microsoft in connection with
         the Asset  Purchase  Agreement as set forth in, and subject to, Section
         6.1  of  the  Asset  Purchase  Agreement.  Sales  pursuant  to  such  a
         registration  shall be in a manner  consistent  with the  provisions of
         Section 1.3 and 1.4.

 3. REPORTS.  If the Shares are registered with the
         SEC, from and after the 18-Month  Anniversary  Date, and for so long as
         necessary in order to permit  Microsoft to sell the Shares  pursuant to
         Rule 144,  Company  will use its best efforts to file on a timely basis
         all  reports  required  to be filed by it pursuant to Section 13 of the
         Securities  Exchange Act of 1934,  referred to in  paragraph  (c)(1) of
         Rule 144 (or, if applicable,  Company will use its best efforts to make
         publicly  available the  information  regarding  itself  referred to in
         paragraph  (c)(2) of Rule 144),  in order to permit  Microsoft to sell,
         pursuant to the terms and conditions of Rule 144, the Shares.
          4. STOCK, SPLIT, RECLASSIFICATION OF SHARES. Should Company effect any
          stock split or  reclassification  of its shares of common stock,  such
          stock  split or  reclassification  shall  apply  to the  terms of this
          Agreement,  and the  number  of  Shares  which  have  been  issued  to
          Microsoft and which  Microsoft  may sell pursuant  Section 1.3 to this
          Agreement shall be adjusted accordingly.
          5. WAIVER.  No waiver by any party  hereto of any  condition or of any
          breach  of  any  provision  of  this  Investment  Agreement  shall  be
          effective unless in writing.
          6. NOTICES.  All notices,  requests,  demands or other  communications
          which  are  required  or may be given  pursuant  to the  terms of this
          Investment  Agreement  shall be in writing and shall be deemed to have
          been duly given on the date of delivery if  delivered  by hand or upon
          receipt if mailed by registered or certified  mail,  postage  prepaid,
          return  requested,  or sent by express  courier,  or by facsimile upon
          written confirmation of receipt by the recipient of such notice to the
          party at the address set forth below,  or such other address as may be
          hereafter be designated in writing by the party:

                                       E-3
<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------
To Microsoft:                                             To Company:
<S>                                                      <C>
------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------
Microsoft Corporation                                     Proginet Corporation
------------------------------------------------------------------------------------------------------------
One Microsoft Way                                         200 Garden.City Plaza
------------------------------------------------------------------------------------------------------------
<PAGE>

------------------------------------------------------------------------------------------------------------
<PAGE>

------------------------------------------------------------------------------------------------------------
Redmond, WA 98052-6399                                    Garden City, NY 11530
------------------------------------------------------------------------------------------------------------
Attention: General Manager,  Attention: Kevin M. Kelly
------------------------------------------------------------------------------------------------------------
SNA Server Development
------------------------------------------------------------------------------------------------------------
Phone: (206) 882-8080                                     Phone: (516) 248-2000
------------------------------------------------------------------------------------------------------------
Fax: (206) 936-7329                                       Fax: (516) 248-3360
------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------
Copy to:                                                  Copy to:
------------------------------------------------------------------------------------------------------------
Law & Corporate Affairs, US Legal                         Parker Chapin Flattau and Kimpl, LLP
------------------------------------------------------------------------------------------------------------
Fax: (206) 869-1327                                       405 Lexington Avenue
------------------------------------------------------------------------------------------------------------
                                                          New York, NY 10174
------------------------------------------------------------------------------------------------------------
                                                          Attention:  James Alterbaum, Esq.
------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------
                                                          Phone:  (212) 704-6000
------------------------------------------------------------------------------------------------------------
                                                          Fax:    (212) 704-6288
</TABLE>

         6.  COUNTERPARTS.  This  Agreement  may be  executed  in  two  or  more
         partially or fully executed  counterparts each of which shall be deemed
         an original  and shall bind the  signatory,  but all of which  together
         shall  constitute  but one and the same  instrument.  `Me execution and
         delivery of a Signature Page - Investment Agreement in the form annexed
         to this  Agreement by any party hereto who shall has been furnished the
         final  form  of this  Agreement  shall  constitute  the  execution  and
         delivery of this  Agreement by such party.
          7.  SUCCESSORS  AND  ASSIGNS.   This  Investment  Agreement  shall  be
          enforceable  by and shall inure to the benefit of and be binding upon,
          the parties hereto and their  respective  successors  and assigns.  As
          used herein,  the terms "successors and assigns" shall mean, where the
          context so permits,  heirs,  executors,  administrators,  trustees and
          successor trustees, and personal and other representatives.
          8. DISPUTE RESOLUTION. Any dispute,  controversy or claim arising, out
          of or in connection with this Agreement,  or any breach thereof, shall
          be addressed  in  accordance  with Section 10.2 of the Asset  Purchase
          Agreement.
          9.  SEVERABILITY.  If any  provision  of this  Agreement is held to be
          unenforceable  for any reason,  such  provision  and all other related
          provisions shall be modified rather than voided, if possible, in order
          to achieve the intent of the parties to this  Agreement  to the extent
          possible.  In  any  event  all  other  unrelated  provisions  of  this
          Agreement shall be deemed valid and enforceable to the full extent.
          10.  EFFECT  OF  HEADINGS.   The  section   headings  herein  are  for
          convenience   only  and  shall  not   affect   the   construction   or
          interpretation of this Investment Agreement.

          11.  DEFINITIONS.  All  capitalized  terms used herein  shall have the
          meaning  defined in the Asset  Purchase  Agreement,  unless  otherwise
          defined herein.
          12. THIRD PARTY RELIANCE.  Counsel to the parties shall be entitled to
          rely upon this  Investment  Agreement  as needed in the  rendering  of
          opinions  as  provided  for  in  the  Asset  Purchase  Agreement.  13.
          CONFIDENTIALITY.  Microsoft and Company agree to keep confidential all
          information  in  accordance  with  Section  6.6 of the Asset  Purchase
          Agreement specifically including without limitation the amount of cash
          and the number of Shares to be issued.

                                       E-4

IN WITNESS WHEREOF,  the parties have entered into this Agreement as of the date
first written above.

MICROSOFT CORPORATION                    PROGINET CORPORATION

---------------------------------------- ---------------------------------------

<PAGE>

By (Sign)                                      By (Sign)
                                               Name (Print)      Name (Print)

                                               Title    Title

E-5

EXHIBIT F
FORM OF
ASSIGNMENT AND BILL OF SALE

     THIS  ASSIGNMENT AND BILL OF SALE (this  "Assignment  and Bill of Sale") is
     delivered  pursuant to that certain Asset Purchase  Agreement,  dated as of
     December 6, 1996,  ("APA")  between  Microsoft  Corporation,  a  Washington
     corporation  located at One Microsoft Way, Redmond,  WA 98052 ("Microsoft")
     and Proginet Corporation, a Delaware corporation located at 200 Garden City
     Plaza, Garden City, New York 11530 ("Company"). The terms and provisions of
     the APA shall apply to this  Assignment and Bill of Sale.  All  capitalized
     terms used but not  otherwise  defined  herein  shall have the meanings set
     forth in the APA.

RECITALS
         7.2.8 A. UNDER THE APA, MICROSOFT AGREED TO SELL TO COMPANY AND COMPANY
         AGREED  TO  PURCHASE  FROM  MICROSOFT  CERTAIN  ASSETS  AND  RIGHTS  OF
         MICROSOFT  PERTAINING  TO THE ACQUIRED  ASSETS.  7.2.9 B. IN CONNECTION
         WITH THE  TRANSACTIONS  CONTEMPLATED  BY THE APA,  MICROSOFT  AGREED TO
         ASSIGN CERTAIN ASSETS AND RIGHTS  PERTAINING TO THE ACQUIRED  ASSETS TO
         COMPANY.

         NOW,  THEREFORE,  for good and valuable  consideration,  the receipt of
         which is hereby acknowledged, Microsoft hereby agrees as follows:

         7.2.10   1.       SALE AND ASSIGNMENT

         Microsoft  hereby sells,  conveys,  transfers,  assigns and delivers to
         Company all right,  title and interest in and to the  Acquired  Assets,
         free  and  clear  of  all  liens,  claims,  charges  and  encumbrances,
         including without limitation the following:

<PAGE>

         (a)  Netwise   Assets.   All  software,   documentation,   test  cases,
              development  history  database,  training  materials  and  related
              proprietary  materials acquired by Microsoft from Newts, Inc. (the
              "Netwise Assets") under an Asset Purchase  Agreement dated October
              27, 1995 (the "Netwise Asset Purchase Agreement").
         (b)  Netwise  Assets  Further  Developed or Modified by Microsoft.  All
              error corrections and updates to the Netwise Assets, documentation
              and materials related to the Netwise Assets developed by Microsoft
              between October 27, 1995 and the Closing Date of this Agreement.
         (c)  Other  Assets.  All  of  Microsoft's  intangible  assets  acquired
              pursuant  to  the  Netwise  Asset  Purchase  Agreement,  including
              goodwill,   going  concern  value,   customer  lists,   contracts,
              agreements,   licenses   or   license   agreements,   commitments,
              warranties,  claims and other  choate  and  inchoate  rights,  but
              excluding without limitation, the Retained Assets, cash,

F-I
marketable   securities,   receivables   and  rights   relating  to  contractual
obligations (other than the Assumed Obligations).

         7.2.11   2.       MICROSOFT'S COVENANTS

         Microsoft  hereby  covenants and agrees that it will, at the reasonable
         request of Company,  execute and deliver, and will cause to be executed
         and delivered,  such further instruments of sale, transfer,  conveyance
         and assignment and take such other action as may reasonably be required
         to more effectively sell, transfer,  convey, assign and deliver to, and
         vest in,  Company,  title to and  possession of the assets hereby sold,
         transferred,  conveyed,  assigned and delivered,  and to put Company in
         actual possession and operating control thereof.

         7.2.12   3.       ATTORNEY-IN-FACT

         Microsoft hereby irrevocably  constitutes and appoints Company, and its
         successors  and assigns,  as its  attorney-in-fact,  with full power of
         substitution,  in its name or  otherwise,  on behalf of  Microsoft  for
         Company's  use, to claim,  demand,  collect and receive at any time and
         from time to time any and all assets, properties,  claims, accounts and
         other rights,  tangible or  intangible,  real,  personal or mixed sold,
         transferred, conveyed, assigned and delivered under this Assignment and
         Bill of Sale.

         7.2.13   4.       APA

         Microsoft,  by its execution of this  Assignment  and Bill of Sale, and
         Company,  by its acceptance and consent to the form of this  Assignment
         and Bill of Sale, each hereby acknowledge and agree that:

         (a)  The terms and provisions of the APA shall apply to this Assignment
              and Bill of Sale, and the terms and conditions of this  Assignment
              and Bill of Sale shall be construed

consistently therewith; and

         7.2.14 (B) NEITHER THE  REPRESENTATIONS  AND  WARRANTIES NOR THE RIGHTS
         (INCLUDING  INDEMNIFICATION)  AND  REMEDIES  OF ANY PARTY UNDER THE APA
         SHALL BE DEEMED  TO HAVE BEEN  ENLARGED  OR  ALTERED  IN ANY WAY BY THE
         EXECUTION, ACCEPTANCE AND APPROVAL OF THIS ASSIGNMENT AND BILL OF SALE.

         5.   Effective Date of Assignment and Bill of Sale

              This Assignment and Bill of Sale shall be deemed effective for all
              purposes as of the Closing Date of the APA.

<PAGE>

F-2

     IN WITNESS WHEREOF, Microsoft has executed this Assignment and Bill of Sale
     effective as of the ___ day of __________ 1996.

MICROSOFT CORPORATION

By
     ITS V:P,       6,s-c-s + -T@ S 0-@ IDIAS

ACCEPTED:

PROGINET CORPORATION

By

Its

F-3

EXHIBIT G
FORM OF
ASSUMPTION OF OBLIGATIONS

     THIS  ASSLWTTON  OF  OBLIGATIONS  ("Assumption")  is  made  by and  between
     Proginet  Corporation,  a Delaware corporation  ("Company"),  and Microsoft
     Corporation,  A Washington  corporation  ("Microsoft").  This Assumption is
     delivered  pursuant to that certain Asset Purchase  Agreement,  dated as of
     December 6, 1996, ("APA"). Capitalized terms used but not otherwise defined
     herein shall have the meanings set forth in the APA.

RECITALS
         7.2.15 A. UNDER THE APA, MICROSOFT AGREED TO SELL AND COMPANY AGREED TO
         PURCHASE  FROM  MICROSOFT  CERTAIN  ASSETS  OF  MICROSOFT  ACQUIRED  BY
         MICROSOFT  FROM NETWISE,  INC. (THE

<PAGE>

        "NETWISE ASSETS") UNDER AN ASSET PURCHASE  AGREEMENT DATED OCTOBER 27,
        1995 BETWEEN MICROSOFT AND NETWISE,  INC. 7.2.16 B. IN CONNECTION WITH
        THE  TRANSACTIONS  CONTEMPLATED  BY THE APA,  COMPANY AGREED TO ASSUME
        CERTAIN  CONTRACTUAL  OBLIGATIONS  OF  MICROSOFT  WITH  RESPECT TO THE
        ACQUIRED ASSETS

         NOW, THEREFORE,  for good and valuable  consideration,  the receipt and
         sufficiency of which are hereby acknowledged,  the parties hereby agree
         as follows:

1.       ASSIGNMENT AND ASSUMPTION

     Microsoft hereby assigns to Company, and Company hereby assumes and agrees,
     subject to the exclusions and limitations contained in the APA, to perform,
     pay or discharge the Assumed Obligations as they are defined in the APA.

     Except for the Assumed  Obligations  or as  otherwise  provided in the APA,
     Company  assumes no debt,  liability  or  obligation  of  Microsoft by this
     Assumption,  and it is  expressly  understood  and  agreed  that all debts,
     liabilities and obligations other than the Assumed Obligations shall remain
     the sole obligation of Microsoft, its successors and assigns, and no person
     other than Microsoft shall have any rights under this Assumption.

2.       APA

     Company,  by its  execution  of  this  Assumption,  and  Microsoft,  by its
     acceptance  and  consent  to the  form  of  this  Assumption,  each  hereby
     acknowledge and agree that:

         7.2.17  (A) THE TERMS  AND  PROVISIONS  OF THE APA SHALL  APPLY TO THIS
         ASSUMPTION,  AND THE TERMS AND CONDITIONS OF THIS  ASSUMPTION  SHALL BE
         CONSTRUED CONSISTENTLY THEREWITH; AND

G- I
         7.2.18 (B) NEITHER THE  REPRESENTATIONS  AND  WARRANTIES NOR THE RIGHTS
         (INCLUDING  INDEMNIFICATION)  AND  REMEDIES  OF ANY PARTY UNDER THE APA
         SHALL BE DEEMED  TO HAVE BEEN  ENLARGED  OR  ALTERED  IN ANY WAY BY THE
         EXECUTION,  ACCEPTANCE  AND  APPROVAL  OF  THIS  ASSUMPTION,  AND  THIS
         ASSUMPTION  SHALL NOT ENLARGE ANY RIGHTS OF THIRD  PARTIES UNDER ANY OF
         THE ASSUMED OBLIGATIONS.

3.       EFFECTIVE DATE OF ASSUMPTION

     This  Assumption  shall be  deemed  effective  for all  purposes  as of the
Closing Date of the APA.

     IN WITNESS  WHEREOF,  Microsoft and Company have executed this Assumption
     effective as of the ___ day of ____________ of 1996.

PROGRNET CORPORATION
By
Its

ACCEPTED:
MICROSOFT CORPORTION

<PAGE>

By-I

Its

G-2
INVESTMENT AGREEMENT

     INVESTMENT  AGREEMENT  ("INVESTMENT  AGREEMENT") entered into as of the ___
     day of December between  MICROSOFT  CORPORATION,  A Washington  corporation
     located at One Microsoft Way, Redmond,  WA 98052 ("MICROSOFT") and PROGINET
     CORPORATION,  a Delaware  corporation  LOCATED at 200  Garden  City  Plaza,
     Garden City, New York 11530 ("COMPANY").

RECITALS
         7.2.19 A.  MICROSOFT  AND COMPANY HAVE  ENTERED INTO AN ASSET  PURCHASE
         AGREEMENT  OF EVEN DATE  HEREWITH  (THE  "Asset  Purchase  Agreement").
         7.2.20 B. THE Asset  PURCHASE  AGREEMENT  PROVIDES THAT  MICROSOFT WILL
         sell CERTAIN  ASSETS TO COMPANY.  IN exchange  for the ASSETS,  COMPANY
         WILL ASSUME  CERTAIN OF  MICROSOFT'S  LIABILITIES  AND ISSUE  SHARES OF
         COMPANY'S  COMMON STOCK, PAR VALUE S.001 (THE "Shares") AS specified IN
         THE Asset PURCHASE  AGREEMENT.  7.2.21 C. ALL  CAPITALIZED  TERMS SHALL
         HAVE THE SAME MEANING as DEFINED IN THE Asset PURCHASE AGREEMENT UNLESS
         OTHERWISE INDICATED HEREIN.

         INTENDING TO BE LEGALLY BOUND, and in consideration of the premises and
         THE  mutual  representations,   warranties,  covenants  and  agreements
         contained herein, Microsoft and Company hereby agree as follows:

AGREEMENT
         7.2.22   1.       Microsoft Representations and Agreements. MICROSOFT
         HEREBY REPRESENTS, WARRANTS AND AGREES THAT:

         1.1  Investor Status. Microsoft: (i) is (a) a "SOPHISTICATED PURCHASER"
              AS  that  term  is  DEFINED  in  Appendix  A to  Form  20A  of the
              Securities Act (British  Columbia) 1985 (the "BC ACT"), and (b) an
              "ACCREDITED  INVESTOR" as that term is defined in Rule 50 1 (a)(5)
              of  Regulation D of THE  Securities  Act of 1933 (the "1933 ACT");
              (ii) is acquiring  the Shares for its own  account,  (iii) has the
              knowledge and experience in financial and business  matters and is
              capable of  evaluating  the  merits  and risks of the  prospective
              investment; and (iv) does not intend to make a distribution of the
              Shares or otherwise act as an "UNDERWRITER"  within the meaning of
              Section 2(11) of the 1933 Act.
         1.2  Company Disclosure Documents. Microsoft has received copies of ALL
              of Company's  disclosure  documents  that have been filed with the
              British Columbia Securities  Commission ("BCSC") since November 1,
              1995, and a description of the Shares to be issued pursuant to the
              terms of the Asset Purchase Agreement.

<PAGE>

         1.3  Transfer Restrictions. Microsoft agrees that any and all transfers
              of Shares received pursuant to the Asset Purchase Agreement, shall
              be limited as follows:

              (A) No Shares may be sold or  otherwise  transferred  by Microsoft
              prior to the 18-Month  Anniversary  Date.

              (b) During the six month period  after the  18-Month  Anniversary
              Date, Microsoft shall be permitted,  but not obligated,  to sell:
              (i) the 100,000 Shares initially issued pursuant to

Section 3.2 of the Asset Purchase Agreement.

         7.2.23 (C) DURING THE SIX MONTH  PERIOD  BEGINNING  24 MONTHS AFTER THE
         CLOSING,  DATE,  MICROSOFT  SHALL BE PERMITTED,  BUT NOT OBLIGATED,  TO
         SELL: (A) ANY OF THE SHARES DESCRIBED IN SECTION 1.3(B) ABOVE, AND (II)
         ONE-THIRD  (1/3)  OF THE  SHARES  ISSUABLE  TO  MICROSOFT  PURSUANT  TO
         SECTIONS  3.1.2 AND 3.2 OF THE ASSET  PURCHASE  AGREEMENT.
         7.2.24  (D) DURING THE SIX MONTH PERIOD BEGINNING 30 MONTHS AFTER THE
         CLOSING DATE, MICROSOFT SHALL BE PERMITTED, BUT NOT OBLIGATED, TO SELL
         (A) ANY OF THE SHARES DESCRIBED IN SECTION 1.3
(b)      above, and (ii) an additional one-third (1/3) of the Shares issuable to
         Microsoft pursuant to Sections

3.1.2    and 3.2 of the Asset Purchase Agreement (i.e., a cumulative total of
         2/3 of such latter categories of Shares).

         7.2.25 (E) ON THE 36-MONTH ANNIVERSARY DATE OF THE CLOSING DATE, ALL OF
         THE  SHARES  ISSUED  TO  MICROSOFT  PURSUANT  TO THE TERMS OF THE ASSET
         PURCHASE  AGREEMENT  SHALL  BE  FREELY  SALEABLE,  SUBJECT  ONLY TO THE
         RESTRICTIONS OF SECTION 1.4 BELOW, BY MICROSOFT.

         1.4  Restrictions.  Subject to the  restrictions  contained  in Section
              1.3, Microsoft will not offer to sell, exchange,  transfer, pledge
              or otherwise  dispose of any of the Shares  unless at such time at
              least one of the following is satisfied:

              (a) a  registration  statement  under  the BC Act or the 1933 Act,
                  whichever is  applicable,  covering the Shares  proposed to be
                  sold,  transferred  or otherwise  disposed of,  describing the
                  manner  and  terms of the  proposed  sale,  transfer  or other
                  disposition,  and containing a current prospectus,  shall have
                  been filed with the BCSC or the SEC,  whichever is applicable,
                  and  made  effective  under  either  the BC Act  (through  the
                  issuance of a receipt by the BCSC) or the 1933 Act;
              (b) such transaction shall be permitted pursuant to the provisions
                  of Rule 144 under the 1933 Act ("Rule 144");
              (c) counsel to Microsoft  reasonably  acceptable  to Company shall
                  have advised  Microsoft that no registration  under the BC Act
                  or 1933 Act would be required in connection with the proposed
                  sale, transfer or other disposition; or

         7.2.26 (D) AN  AUTHORIZED  REPRESENTATIVE  OF THE BCSC OR THE SEC SHALL
HAVE  rendered  written  advice to Microsoft  (sought by Microsoft or counsel to
Microsoft  after prior notice to Company) to the effect that the BCSC or the SEC
would  take no  action,  or that  the  staff of the  BCSC or the SEC  would  not
recommend  that the BCSC or SEC take action,  with respect to the proposed sale,
transfer or other disposition if consummated.

         7.2.27 1.5 RESTRICTIVE  LEGEND(S).  ALL  CERTIFICATES  REPRESENTING THE
         SHARES   DELIVERABLE  TO  MICROSOFT  PURSUANT  TO  THE  ASSET  PURCHASE
         AGREEMENT AND ANY CERTIFICATES SUBSEQUENTLY ISSUED WITH RESPECT THERETO
         OR  IN  SUBSTITUTION  THEREFOR,   UNLESS  A  SALE,  TRANSFER  OR  OTHER
         DISPOSITION  IS  EXECUTED  PURSUANT  TO ONE OR MORE OF THE  ALTERNATIVE
         CONDITIONS SET FORTH IN SECTION 1.4 SHALL HAVE OCCURRED,  OR UNLESS THE
         CONDITIONS OF PARAGRAPH (K) OF RULE 144 SHALL HAVE BEEN SATISFIED,  AND
         SHALL BEAR A LEGEND SUBSTANTIALLY AS FOLLOWS:

<PAGE>

         y

     "The shares  represented  by this  certificate  may not be  offered,  sold,
     pledged, transferred or otherwise disposed of except in accordance with the
     requirements of the Securities Act (British Columbia) 1985, as amended, and
     the other conditions specified in that certain Investment Agreement, a copy
     of which may be inspected by the holder of this  certificate at the offices
     of Proginet Corporation, 200 Garden City Plaza, Suite 220, Garden City, New
     York 11530, or Proginet  Corporation  will furnish,  without charge, a copy
     thereof to the holder of this certificate upon written request therefor."

     Should the Shares be registered with the Securities and Exchange Commission
     during,  the 30 months after the Closing  Date,  Microsoft  shall return to
     Company its Shares containing the

above legend.  Company shall promptly  replace these Shares with the same number
of Shares bearing the following, legend:

     0

     "The shares  represented  by this  certificate  may not be  offered,  sold,
     pledged, transferred or otherwise disposed of except in accordance with the
     requirements of the Securities Act (British Columbia) 1985, as amended, and
     the other conditions specified in that certain Investment Agreement, a copy
     of which may be inspected by the holder of this  certificate at the offices
     of Proginet Corporation, 200 Garden City Plaza, Suite 220, Garden City, New
     York 11530, or Proginet  Corporation  will furnish,  without charge, a copy
     thereof to the holder of this certificate upon written request therefor.'

     Company,  at its  discretion,  may cause a stop transfer order to be placed
     with its transfer  agent(s) with respect to the certificates for the Shares
     but not as to the  certificates for any part of the Shares as to which said
     legend is no longer  appropriate  when one or more of the  alternatives set
     forth  in  Section  1.4  shall  have  been  satisfied  and the  contractual
     agreement  not to  engage  in Sales as set  forth in  Section  1.3 has been
     satisfied or waived by Company.  Company covenants that upon the request of
     Microsoft,  it will  remove  said  legend  when a sale,  transfer  or other
     disposition  is executed in  compliance  with  Sections  1.3 and one of the
     alternatives in Section 1.4.

         7.2.28 1.6 OBSERVATION OF BC AND 1933 ACTS.  MICROSOFT WILL OBSERVE AND
COMPLY WITH THE BC Act and 1933 Act,  whichever is  applicable,  and the General
Rules and Regulations  thereunder,  as now in effect and as from to time amended
and including  those hereafter  enacted or  promulgated,  in connection with any
offer,  sale,  pledge,  transfer or other  disposition  of the Microsoft  Common
Shares or any part thereof including the prospectus delivery requirements of the
BC and 1933 Acts.

         7.2.29 2. REGISTRATION. COMPANY SHALL HAVE THE OBLIGATION, AT COMPANY'S
         SOLE EXPENSE,  TO REGISTER THE SHARES ISSUED TO MICROSOFT IN CONNECTION
         WITH THE ASSET  PURCHASE  AGREEMENT  AS SET FORTH IN, AND  SUBJECT  TO,
         SECTION 6.1 OF THE ASSET PURCHASE  AGREEMENT.  SALES PURSUANT TO SUCH A
         REGISTRATION  SHALL BE IN A MANNER  CONSISTENT  WITH THE  PROVISIONS OF
         SECTION 1.3 AND 1.4.
         7.2.30 3. REPORTS. IF THE SHARES ARE REGISTERED WITH THE SEC, FROM AND
         AFTER THE 18-MONTH  ANNIVERSARY  DATE, AND FOR SO LONG AS NECESSARY IN
         ORDER TO PERMIT  MICROSOFT  TO SELL THE SHARES  PURSUANT  TO RULE 144,
         COMPANY  WILL  USE ITS BEST  EFFORTS  TO FILE ON A  TIMELY  BASIS  ALL
         REPORTS  REQUIRED  TO BE FILED BY IT  PURSUANT  TO  SECTION  13 OF THE
         SECURITIES  EXCHANGE ACT OF 1934,  REFERRED TO IN PARAGRAPH  (C)(1) OF
         RULE 144 (OR, IF APPLICABLE, COMPANy WILL USE ITS BEST EFFORTS TO MAKE
         PUBLICLY  AVAILABLE THE  INFORMATION  REGARDING  ITSELF REFERRED TO IN
         PARAGRAPH  (C)(2) OF RULE 144), IN ORDER TO PERMIT  MICROSOFT TO SELL,
         PURSUANT TO THE TERMS AND CONDITIONS OF RULE 144, THe SHARES.
         7.2.31 4. STOCK  SPLIT,  RECLASSIFICATION  OF SHARES.  SHOULD  COMPANY
         EFFECT  ANY  STOCK  SPLIT OR  RECLASSIFICATION  O I@  SHARES OF COMMON
         STOCK, SUCH STOCK SPLIT OR  RECLASSIFICATION  SHALL APPLY TO THE TERMS
         OF THIS AGREEMENT,  AND THE NUMBER OF SHARES WHICH HAVE BEEN ISSUED TO
         MICROSOFT AND WHICH  MICROSOFT  MAY SELL PURSUANT  SECTION 1.3 TO THIS
         AGREEMENT SHALL BE ADJUSTED ACCORDINGLY.
         7.2.32 5. WAIVER. NO WAIVER BY ANY PARTY HERETO OF ANY CONDITION OR OF
         ANY BREACH OF ANY  PROVISION  OF THIS  INVESTMENT  AGREEMENT  SHALL BE
         EFFECTIVE UNLESS IN WRITING

<PAGE>

         7.2.33  6.   NOTICES.   ALL  NOTICES,   REQUESTS,   DEMANDS  OR  OTHER
         COMMUNICATIONS  WHICH ARE  REQUIRED  OR MAY BE GIVEN  PURSUANT  TO THE
         TERMS OF THIS  INVESTMENT  AGREEMENT  SHALL BE IN WRITING AND SHALL BE
         DEEMED TO HAVE BEEN DULY GIVEN ON THE DATE OF DELIVERY IF DELIVERED BY
         HAND OR UPON  RECEIPT  IF  MAILED BY  REGISTERED  OR  CERTIFIED  MAIL,
         POSTAGE PREPAID,  RETURN REQUESTED,  OR SENT BY EXPRESS COURIER, OR BY
         FACSIMILE  UPON WRITTEN  CONFIRMATION  OF RECEIPT BY THE  RECIPIENT OF
         SUCH NOTICE TO THE PARTY AT THE ADDRESS SET FORTH BELOW, OR SUCH

other ADDRESS AS MAY be hereafter be designated in writing by the party:

C,
To Microsoft:  To Company:

                   Microsoft Corporation            Proginet Corporation
                   One Microsoft Way                200 Garden City Plaza
                   Redmond, WA 98052-6399           Garden City, NY 11530
                   Attention: General Manager,      Attention: Kevin M. Kelly
    7.2.34   SNA SERVER DEVELOPMENT
                  Phone: (206) 882-8080             Phone: (516) 248-2000
                  Fax: (206) 936-7329               Fax: (516) 248-3360

         Copy to: Copy to:
Law & Corporate Affairs, US Legal   Parker Chapin Flattau and Kimpl, LLP
         Fax: (206) 869-1327        1211 Avenue Of Americas
     New York, NY 10036

                                      Attention:    James Alterbaum, Esq.

                                      Phone:    (212) 704-6000
                                      Fax:   (212) 704-6288

         7.2.35 6.  COUNTERPARTS.  THIS AGREEMENT MAY BE EXECUTED IN TWO OR MORE
         PARTIALLY OR FULLY EXECUTED  COUNTERPARTS EACH OF WHICH SHALL BE DEEMED
         AN ORIGINAL  AND SHALL BIND THE  SIGNATORY,  BUT ALL OF WHICH  TOGETHER
         SHALL  CONSTITUTE  BUT ONE AND THE SAME  INSTRUMENT.  THE EXECUTION AND
         DELIVERY OF A SIGNATURE PAGE - INVESTMENT AGREEMENT IN THE FORM ANNEXED
         TO THIS  AGREEMENT BY ANY PARTY HERETO WHO SHALL HAS BEEN FURNISHED THE
         FINAL  FORM  OF THIS  AGREEMENT  SHALL  CONSTITUTE  THE  EXECUTION  AND
         DELIVERY OF THIS  AGREEMENT  BY SUCH PARTY.
         7.2.36 7. SUCCESSORS AND ASSIGNS.  THIS INVESTMENT  AGREEMENT SHALL BE
         ENFORCEABLE  BY AND SHALL INURE TO THE BENEFIT OF AND BE BINDING UPON,
         THE PARTIES HERETO AND THEIR  RESPECTIVE  SUCCESSORS  AND ASSIGNS.  AS
         USED HEREIN,  THE TERMS "SUCCESSORS AND ASSIGNS" SHALL MEAN, WHERE THE
         CONTEXT SO PERMITS,  HEIRS,  EXECUTORS,  ADMINISTRATORS,  TRUSTEES AND
         SUCCESSOR TRUSTEES, AND PERSONAL AND OTHER REPRESENTATIVES.
         7.2.37  8.  DISPUTE  RESOLUTION.  ANY  DISPUTE,  CONTROVERSY  OR CLAIM
         ARISING OUT OF OR IN  CONNECTION  WITH THIS  AGREEMENT,  OR ANY BREACH
         THEREOF,  SHALL BE  ADDRESSED IN  ACCORDANCE  WITH SECTION 10.2 OF THE
         ASSET PURCHASE AGREEMENT.
         7.2.38 9. SEVERABILITY.  IF ANY PROVISION OF THIS AGREEMENT IS HELD TO
         BE UNENFORCEABLE FOR ANY REASON,  SUCH PROVISION AND ALL OTHER RELATED
         PROVISIONS SHALL BE MODIFIED RATHER THAN VOIDED, IF POSSIBLE, IN ORDER
         TO ACHIEVE THE INTENT OF THE PARTIES TO THIS  AGREEMENT  TO THE EXTENT
         POSSIBLE.  IN ANY  EVENT,  ALL  OTHER  UNRELATED  PROVISIONS  OF  THIS
         AGREEMENT SHALL BE DEEMED VALID AND ENFORCEABLE TO THE FULL EXTENT.
         7.2.39 10.  EFFECT OF HEADINGS.  THE SECTION  HEADINGS  HEREIN ARE FOR
         CONVENIENCE   ONLY  AND  SHALL  NOT   AFFECT   THE   CONSTRUCTION   OR
         INTERPRETATION OF THIS INVESTMENT AGREEMENT.
<PAGE>

     11.  Definitions.  All capitalized terms used herein shall have the meaning
     defined in the Asset Purchase Agreement, unless otherwise defined herein.

         7.2.40  12.  THIRD  PARTY  RELIANCE.  COUNSEL TO THE  PARTIES  SHALL BE
         ENTITLED  TO RELY  UPON  THIS  INVESTMENT  AGREEMENT  AS  NEEDED IN THE
         RENDERING OF OPINIONS AS PROVIDED FOR IN THE ASSET PURCHASE  AGREEMENT.
         7.2.41  13.  CONFIDENTIALITY.  MICROSOFT  AND  COMPANY  AGREE  TO  KEEP
         CONFIDENTIAL  ALL  INFORMATION  IN  ACCORDANCE  WITH SECTION 6.6 OF THE
         ASSET PURCHASE AGREEMENT  SPECIFICALLY INCLUDING WITHOUT LIMITATION THE
         AMOUNT OF CASH AND THE NUMBER OF SHARES TO BE ISSUED.

         IN WITNESS WHEREOF,  the parties have entered into this Agreement as of
the date FIRST written above.

MICROSOFT CORPORATION                              PROGINET CORPORATION

                       By ZSip)                                   BI (Sign)

                       NAME (Print)                               NAME (Print)

                       Title                                      TITLE

                                                     p@       A,
                                                     Date     Date

I\chdM[02-00.45Nn@tdoc

ASSIGNMENT AND BILL OF SALE

     THIS  ASSIGNMENT AND BILL OF SALE (this  "Assignment  and Bill of Sale") is
     delivered  pursuant to that certain Asset Purchase  Agreement,  dated as of
     December 6, 1996,  ("APA")  between  Microsoft  Corporation,  a  Washington
     corporation  located at One Microsoft Way, Redmond,  WA 98052 (`Microsoft')
     and Proginet Corporation, a Delaware corporation located at 200 Garden City
     Plaza, Garden City, New York 11530 ("Company"). `Me terms and provisions of
     the APA shall apply to this  Assignment and Bill of Sale.  All  capitalized
     terms used but not  otherwise  defined  herein  shall have the meanings set
     forth in the APA.

RECITALS

         7.2.42  A.  UNDER THE APA,  MICROSOFT  AGREED  TO SELL TO  COMPANY  AND
         COMPANY AGREED TO PURCHASE FROM MICROSOFT  CERTAIN ASSETS AND RIGHTS OF
         MICROSOFT  PERTAINING TO THE ACQUIRED  ASSETS.  7.2.43 B. IN CONNECTION
         WITH THE  TRANSACTIONS  CONTEMPLATED  BY THE APA,  MICROSOFT  AGREED TO
         ASSIGN CERTAIN ASSETS AND RIGHTS  PERTAINING TO THE ACQUIRED  ASSETS TO
         COMPANY.

         NOW,  THEREFORE,  for good and valuable  consideration,  the receipt of
         which is hereby acknowledged, Microsoft hereby agrees as follows:

         7.2.44   1.       SALE AND ASSIGNMENT

         Microsoft  hereby sells,  conveys,  transfers,  assigns and delivers to
         Company all right,  title and interest in and to the  Acquired  Assets,
         free  and  clear  of  all  liens,  claims,  charges  and  encumbrances,
         including without limitation the following:

                                       C,

<PAGE>

         (a)  Netwise   Assets.   All  software,   documentation,   test  cases,
              development  history  database,  training  materials  and  related
              proprietary  materials  acquired by Microsoft  from Netwise,  Inc.
              (the "Netwise  Assets")  under an Asset Purchase  Agreement  dated
              October 27, 1995 (the "Netwise Asset Purchase Agreement").
         (b)  Netwise  Assets  Further  Developed or Modified by Microsoft.  All
              error corrections and updates to the Netwise Assets, documentation
              and materials related to the Netwise Assets developed by Microsoft
              between  October 27, 1995 and the Closing Date of this  Agreement.
              (c) Other Assets.  All of Microsoft's  intangible  assets acquired
              pursuant to the
Netwise Asset  Purchase  Agreement,  including  goodwill,  going concern  value,
customer  lists,   contracts,   agreements,   licenses  or  license  agreements,
commitments,  warranties,  claims and other  choate  and  inchoate  rights,  but
excluding without limitation,  the Retained Assets, cash, marketable securities,
receivables  and rights  relating  to  contractual  obligations  (other than the
Assumed Obligations).

         7.2.45   2.       MICROSOFT'S COVENANTS

         Microsoft  hereby  covenants and agrees that it will, at the reasonable
         request of Company,  execute and deliver, and will cause to be executed
         and delivered,  such further instruments of sale, transfer,  conveyance
         and assignment and take such other action as may reasonably be required
         to more effectively sell, transfer,  convey, assign and deliver to, and
         vest in,  Company,  title to and  possession of the assets hereby sold,
         transferred,  conveyed,  assigned and delivered,  and to put Company in
         actual possession and operating control thereof.

         7.2.46   3.       ATTORNEY-IN-FACT
         ----------------------------------

         Microsoft hereby irrevocably  constitutes and appoints Company, and its
         successors  and assigns,  as its  attorney-in-fact,  with full power of
         substitution,  in its name or  otherwise,  on behalf of  Microsoft  for
         Company's  use, to claim,  demand,  collect and receive at any time and
         from time to time any and all assets, properties,  claims, accounts and
         other rights,  tangible or  intangible,  real,  personal or mixed sold,
         transferred, conveyed, assigned and delivered under this Assignment and
         Bill of Sale.

         7.2.47   4.       APA
         ---------------------

         Microsoft,  by its execution of this  Assignment  and Bill of Sale, and
         Company,  by its acceptance and consent to the form of this  Assignment
         and Bill of Sale, each hereby acknowledge and agree that:

         (a)  `Me terms and provisions of the APA shall apply to this Assignment
              and Bill of Sale, and the terms and conditions of this  Assignment
              and Bill of Sale shall be construed consistently therewith; and
         (b)  Neither  the   representations   and  warranties  nor  the  rights
              (including  indemnification)  and  remedies of any party under the
              APA shall be deemed to have been enlarged or altered in any way by
              the execution, acceptance and approval of this Assignment and Bill
              of Sale.

         7.2.48   5.       EFFECTIVE DATE OF ASSIGNMENT AND BILL OF SALE
         ---------------------------------------------------------------

         This  Assignment  and Bill of Sale  shall be deemed  effective  for all
purposes as of the Closing Date of the APA.

         IN WITNESS  @REOF,  Microsoft has executed this  Assignment and Bill of
Sale effective as of the /-7/4 day of 1996.

     MICROSOFT CORPORATION

By

<PAGE>

`700
----
its
ACCEPTED:
PROGINET CORPORATION

By_

its

ASSUMPTION OF OBLIGATIONS

     THIS  ASSUMPTION  OF  OBLIGATIONS  ("Assumption")  is made  by and  between
     Proginet  Corporation,  a Delaware corporation  ("Company"),  and Microsoft
     Corporation,  a Washington  corporation  ("Microsoft").  This Assumption is
     delivered  pursuant to that certain Asset Purchase  Agreement,  dated as of
     December  6,  1996,  ("A.PA").  Capitalized  terms  used but not  otherwise
     defined herein shall -have the meanings set forth in the APA.

RECITALS

         7.2.49 A. UNDER THE APA, MICROSOFT AGREED TO SELL AND COMPANY AGREED TO
         PURCHASE  FROM  MICROSOFT  CERTAIN  ASSETS  OF  MICROSOFT  ACQUIRED  BY
         MICROSOFT  FROM NETWISE,  INC. (THE  "NETWISE  ASSETS")  UNDER AN ASSET
         PURCHASE  AGREEMENT  DATED  OCTOBER  27,  1995  BETWEEN  MICROSOFT  AND
         NETWISE,   INC.
         7.2.50  B.  IN  CONNECTION   WITH  THE   TRANSACTIONS CONTEMPLATED BY
         THE APA,  COMPANY AGREED TO ASSUME CERTAIN  CONTRACTUAL OBLIGATIONS OF
         MICROSOFT WITH RESPECT TO THE ACQUIRED ASSETS.

         NOW, THEREFORE,  for good and valuable  consideration,  the receipt and
         sufficiency of which are hereby acknowledged,  the parties hereby agree
         as follows:

         7.2.51   1.       ASSIGNMENT AND ASSUMPTION
         -------------------------------------------

         Microsoft  hereby  assigns to Company,  and Company  hereby assumes and
         agrees, subject to the exclusions and limitations contained in the APA,
         to  perform,  pay or  discharge  the  Assumed  Obligations  as they are
         defined in the APA.

         Except for the Assumed Obligations or as otherwise provided in the APA,
         Company  assumes no debt,  liability or obligation of Microsoft by this
         Assumption,  and it is expressly  understood and agreed that all debts,
         liabilities and obligations  other than the Assumed  Obligations  shall
         remain the sole  obligation of Microsoft,  its  successors and assigns,
         and no person  other than  Microsoft  shall have any rights  under this
         Assumption.

         7.2.52   2.       APA
         ---------------------

         Company,  by its execution of this  Assumption,  and Microsoft,  by its
         acceptance  and  consent to the form of this  Assumption,  each  hereby
         acknowledge and agree that:

     ZP

         (a)  `Me  terms  and   provisions  of  the  APA  shall  apply  to  this
              Assumption,  and the terms and conditions of this Assumption shall
              be construed consistently therewith; and

       (b)    Neither  the   representations   and  warranties  nor  the  rights
              (including  indemnification)  and  remedies of any party under the
              APA shall be deemed to have been enlarged or altered in any way by
              the  execution,  acceptance and approval of this  Assumption,  and
              this  Assumption  shall not  enlarge  any rights of third  parties
              under any of the Assumed Obligations.

         7.2.53 3. EFFECTIVE DATE OF ASSUMPTION THIS ASSUMPTION  SHALL BE DEEMED
         EFFECTIVE  FOR ALL  PURPOSES  AS OF THE  CLOSING  DATE OF THE  APA.  TN
         WITNESS  WHEREOF,  Microsoft and Company have executed this  Assumption
         effective as of ther7.6d-ay of 1996.

<PAGE>

PROGINET CORPORATION
By
its
ACCEPTED:

NHC                     ON

By

its

COVENANT

     This   Covenant   (the   "Covenant")   is   entered   into  and   effective
     contemporaneously  with the Asset Purchase  Agreement  entered into between
     these same parties dated the I'-7-6day of December,  1996 (the  "Agreement)
     by Proginet Corporation,  a Delaware corporation located at 200 Garden City
     Plaza,  Garden  City,  NY  II530   ("Covenant"),   in  favor  of  Microsoft
     Corporation,  a  Washington  corporation  located  at  One  Microsoft  Way,
     Redmond,  WA  98052,  ("Microsoft")  and  Microsoft's  employees,   agents,
     officers, directors, distributors,  resellers, licensees, and its and their
     successors and assigns (collectively, "Covenantees").

1.   Definitions.

          7.2.54 1.1 IBIS COVENANT INCORPORATES BY REFERENCE AS THOUGH FULLY SET
          FORTH HEREIN THE DEFINITIONS OF THE FOLLOWING TERMS FOUND IN SECTION I
          OF THE  AGREEMENT:  ACQUIRED  ASSETS,  SOURCE CODE,  AND  Confidential
          Information.
          7.2.55 1.2 "RESIDUALS" MEANS  INFORMATION IN NON-TANGIBLE  FORM, WHICH
          MAY BE  RETAINED  BY  PERSONS  who have  had  access  to  Confidential
          Information,  including  Source Code for  Acquired  Assets or portions
          thereof, and the ideas, concepts,  know-how or techniques contained in
          that Confidential Information.

2.   Covenant In consideration  of the promises made and obligations  undertaken
     by Microsoft  under the  Agreement,  and for  additional  good and valuable
     consideration,  the  receipt and  sufficiency  of which  Covenantor  hereby
     acknowledges,  Covenantor  hereby covenants and agrees, on behalf of itself
     and  its  directors,   officers,  employees,  agents,  and  its  and  their
     successors  and  assigns,   that   notwithstanding  any  provision  of  the
     Agreement, it will never institute,  prosecute,  aid in the prosecution of,
     or join in any administrative  proceeding,  legal action, or administrative
     or judicial appeal relating to, arising out of, or in any manner  connected
     with a claim that  Covenantees,  or any of them, have improperly or without
     proper  authority  used or  disclosed  Residuals  in any manner,  including
     without   limitation  in  connection  with  the   acquisition,   licensing,
     development,  manufacture, distribution or marketing, for it or themselves,
     of  similar  technology  performing  the same or similar  functions  as the
     technology which is the subject of the Agreement.  This paragraph shall not
     be deemed to supersede,  modify or limit Microsoft's obligations to Company
     under  Section  9.2.1 of the  Agreement,  notwithstanding  anything  to the
     contrary herein.

3.   Choice of  law/availability of injunctive relief.  Covenantor  acknowledges
     and agrees that any breach of this Covenant will result in irreparable harm
     to  Covenantees,  and each of  them,  and that  any  breach  shall  entitle
     Covenantees and each of them to injunctive relief, among other remedies.

In WITNESS  @EREOF,  the parties have entered into this  Covenant as of the date
first written

         7.2.56   ABOVE.
                       MICROSOFT CO[                PR            T CORPORATION

                       By (sign)                     B@(sign)
o        C)LLO , ti Uric, K@ v't

         Name (print)      Nam?(print)      @

<PAGE>

         @@@ese@4

                       Title                                       Title

Date                                              Date

LICENSE AGREEMENT

     License   Agreement   (the   "License")   is  entered  into  and  effective
     contemporaneously  with the Asset Purchase  Agreement  entered into between
     these same parties dated the ____ day of December,  1996 (the  "Agreement")
     by and between Proginet Corporation,  a Delaware corporation located at 200
     Garden  City Plaza,  Garden  City,  NY 11530  ("Licensor'),  and  Microsoft
     Corporation,  a  Washington  corporation  located  at  One  Microsoft  Way,
     Redmond, WA 98052 ("Microsoft").

1.   Definitions.  This  License  incorporates  by reference as though fully set
     forth herein the  definitions of the following  terms found in Section I of
     the Agreement: Acquired Assets, Source Code, Object Code, and Closing Date.
2.   License Grant and Payment.  In  consideration  of a payment of Ten Thousand
     Dollars ($ 1 0,000.00)  in cash to be made in full by Microsoft to Licensor
     on or before the Closing Date,  Licensor shall be deemed to have granted to
     Microsoft,  as of the Closing Date, a  non-exclusive,  fully paid,  royalty
     free, irrevocable,  perpetual license to (i) make, use, copy, edit, format,
     port,  translate,  modify, adapt and create derivative works based upon the
     "Exec Hub" software  components  (including all subsystems  thereof) of the
     Acquired  Assets in both  Source  Code and Object  Code  form;  and (ii) to
     reproduce,   license,  rent,  lease  or  otherwise  distribute,   and  have
     reproduced,  licensed,  rented, leased or otherwise distributed,  to and by
     third  parties,  such  derivative  works  as part of any and all  Microsoft
     products in Source Code and Object Code form. For purposes of this License,
     the "Exec Hub"  software,  including all of its  subsystems,  refers to the
     Exec Hub software and subsystems as described in the document  "TransAccess
     EXEC for MVS, internals Guide," dated September, 1995.

     In WITNESS  WHEREOF,  the parties  have entered into this License as of the
date first written above.

0                 p        ET CORPORATION

     Mr@A

                                    `w b t
                                    By (sign)                 B5r(sign)

     v a si@ V'.

Name (print)                                       Name (print)

v
Title                                              Title
     iqq@

Date                                               Date

MICROSOFT CORPORATTON

CERTIFICATE OF ASSISTANT SECRETARY

     This  certificate is being  furnished to you pursuant to Section 7. 1. I of
     the Asset  Purchase  Agreement (the  "Agreement")  dated as of December 17,
     1996 by and among  Microsoft  Corporation,  a Washington  corporation  (the
     "Company"),  Proginet  Corporation,  a Delaware  corporation,  and  certain
     shareholders  of  Proginet  Corporation.  ,  The  undersigned,   Robert  A.
     Eshelman,  does  hereby  certify  that he is the duly  elected  and  acting
     Assistant  Secretary of the  Company,  and does hereby  further  certify as
     follows:

<PAGE>

         7.2.57 (A) THE  REPRESENTATIONS  AND  WARRANTIES  OF THE COMPANY IN THE
         AGREEMENT WERE TRUE AND CORRECT IN ALL MATERIAL RESPECTS AS OF DECEMBER
         !L 1996 AND AS OF THE  CLOSING  DATE (AS DEFINED IN THE  AGREEMENT)  AS
         THOUGH MADE ON AND AS OF THE CLOSING  DATE,  AND 7.2.58 (B) THE COMPANY
         HAS PERFORMED IN ALL RESPECTS ALL AGREEMENTS AND COVENANTS  REQUIRED TO
         BE PERFORMED BY THE COMPANY  UNDER THE  AGREEMENT  PRIOR TO THE CLOSING
         DATE.

     IN WITNESS WHEREOF, the undersigned has executed this certificate as of the
17th day of December 1996.

     Robert A. Eshelman, Assistant SecretaryEXHIBIT 10.13

                               AMENDMENT AGREEMENT

         This Amendment  Agreement  (this  "Agreement") is made this 28th day of
October by and between by PROGINET  CORPORATION,  a Delaware corporation located
at 200 Garden City Plaza,  Garden City,  NY 11530  ("Proginet"),  and  MICROSOFT
CORPORATION,  a Washington corporation located at One Microsoft Way, Redmond, WA
98052,  ("Microsoft"),  and relates to the Asset Purchase Agreement entered into
between  these same  parties  dated the 17th day of  December,  1996 (the "Asset
Purchase  Agreement").  Capitalized  terms used but not defined  herein have the
meanings assigned to them in the Asset Purchase Agreement.

         WHEREAS,   the  Transition  Period  specified  in  the  Asset  Purchase
Agreement has expired and the parties wish to provide for a final  resolution of
certain  obligations  the  parties  owe each  other  under  the  Asset  Purchase
Agreement; and

         WHEREAS,  for the  purposes of greater  certainty,  the parties wish to
clarify the  covenants and  obligations  that will continue to survive under the
Asset Purchase  Agreement and the related  agreements  contemplated by the Asset
Purchase Agreement (the "Related  Agreements"),  including,  without limitation,
the Investment Agreement,  the BackOffice license contemplated by Section 6.3 of
the Asset Purchase Agreement, the Assignment and Bill of Sale, the Assumption of
Obligations  and the Covenant (the  "Covenant")  each entered into in connection
with the Asset Purchase Agreement.

         NOW,  THEFORE,  based on the  foregoing,  and the mutual  covenants and
agreements set forth herein, the parties agree as follows:

1        ASSET PURCHASE AGREEMENT AND RELATED AGREEMENTS

         1.1 DELIVERY OF SHARES. In full and complete satisfaction of Proginet's
obligations  under  Sections  3.1  and  3.3 of  the  Asset  Purchase  Agreement,
simultaneous  with the  execution  of this  Agreement  Proginet  is issuing  and
delivering  to  Microsoft   1,260,000  shares  of  Proginet  Common  Stock  (the
"Settlement  Shares").  The Settlement Shares and the 100,000 shares of Proginet
Common Stock  heretofore  delivered to Microsoft  pursuant to the Asset Purchase
Agreement (the "Original Shares") are collectively  referred to as the "Shares."
Upon  issuance,  the Shares  shall be freely  tradable  on the  Vancouver  Stock
Exchange (the "VSE") in reliance upon the letter of McCarthy  Tetrault,  counsel
to Microsoft,  to the effect that no prospectus is required under the Securities
Act (British  Columbia)  (the "BC Act") in  connection  with the proposed  sale,
transfer or other disposition of such Shares in British Columbia. A copy of such
letter is attached hereto as Annex 1. Upon issuance, the Settlement Shares shall
be free from all restrictive  legends and, upon surrender of the Original Shares
to Proginet, Proginet shall reissue to Microsoft a certificate representing such
shares free from all restrictive legends. At or prior to the time of delivery of
the Settlement Shares, Proginet shall remove any stop transfer instructions with
respect to the Shares previously provided to the transfer agent for the Proginet
Common Stock.

                  1.1.1  RESTRICTIONS  ON SALE OF SHARES IN THE  UNITED  STATES.
Microsoft  will not  offer to sell,  exchange,  transfer,  pledge  or  otherwise
dispose of any of the Shares in the United  States  unless at such time at least
one of the following is satisfied:

                   (a) a  registration  statement  under the  Securities  Act of
1933,  as amended  (the "1933 Act"),  covering  the Shares  proposed to be sold,
transferred  or otherwise  disposed of,  describing  the manner and terms of the
proposed  sale,  transfer  or  other  disposition,   and  containing  a  current
prospectus, shall have been filed with the SEC and made effective under the 1933
Act;

                   (b) such transaction shall be permitted pursuant to the
provisions of Rule 144 under the 1933 Act ("Rule 144");

                   (c) counsel to Microsoft  reasonably  acceptable  to Proginet
shall have advised  Microsoft that no  registration  under the 1933 Act would be
required in connection with the proposed sale, transfer or other disposition; or

                   (d) an  authorized  representative  of  the  SEC  shall  have
rendered  written  advice to  Microsoft  (sought  by  Microsoft  or  counsel  to
Microsoft  after prior notice to Proginet) to the effect that the SEC would take
no

<PAGE>

action, or that the staff of the SEC would not recommend that the SEC take
action, with respect to the proposed sale, transfer or other disposition if
consummated.

                  1.1.2 OBSERVATION OF BC AND 1933 ACTS.  Microsoft will observe
and  comply  with the BC Act and 1933  Act,  whichever  is  applicable,  and the
General Rules and Regulations  thereunder,  as now in effect and as from to time
amended and including those hereafter enacted or promulgated, in connection with
any offer, sale, pledge, transfer or other disposition of the Shares or any part
thereof.

         1.2 PROXY. Simultaneous with the execution of this Agreement, Microsoft
is executing and delivering to the President of Proginet  Corporation a proxy to
vote the Shares at the next annual  meeting of the  shareholders  of Proginet in
favor of the slate of nominees for Proginet's  Board of Directors as recommended
by the existing Board of Directors.

         1.3.  TERMINATION OF COVENANTS AND  AGREEMENTS.  Except as specifically
provided in the next  sentence,  all covenants and agreements of the parties not
already satisfied and set forth in the Asset Purchase  Agreement and the Related
Agreements   are  hereby   terminated   and  of  no  further  force  or  effect.
Notwithstanding  the  foregoing,  the  provisions of Sections  6.3.  (BackOffice
License   Rights   which  is  extended   until   December   17th,   2003),   6.6
(Confidentiality  Obligations)  and 6.8 (Taxes) of the Asset Purchase  Agreement
and the  Covenant  shall  continue  to  survive  (collectively,  the  "Surviving
Obligations").  Except for the Surviving  Obligations,  each party shall have no
further  obligation  to the  other  under the Asset  Purchase  Agreement  or the
Related  Agreements.  For  purposes  of  clarification,  the  extension  of  the
BackOffice  License  Rights  set forth in this  Agreement  shall  apply  only to
Microsoft  BackOffice  v. 2.5 and shall not entitle  Proginet to any upgrades or
subsequent versions thereof.

2.       RELEASES.

         2.1 PROGINET  RELEASE OF MICROSOFT.  Proginet  hereby fully and finally
releases,  acquits and forever  discharges  Microsoft  from any and all actions,
debts, claims, counterclaims,  demands, liabilities,  damages, causes of action,
costs,  expenses,  and compensation of every kind and nature  whatsoever,  past,
present or future, in law or in equity,  whether known or unknown (collectively,
"Claims"),  which Proginet had, has, may have had at any time in the past or may
have in the future against Microsoft  arising from,  related to or in connection
with  any   representation,   warranty,   covenant  or  agreement  of  Microsoft
(collectively,  the "Microsoft Obligations") set forth in or contemplated by the
Asset  Purchase  Agreement  or  the  Related  Agreements,   including,   without
limitation,  any Claims  relating to any Microsoft  Obligation  set forth in any
exhibit  or  annex  to any such  agreement.  For  purposes  of this  Section  2,
references to Proginet shall be deemed to include any subsidiary of Proginet and
any other entity controlled by Proginet or under common control with Proginet.

         2.2 MICROSOFT  RELEASE OF PROGINET.  Microsoft hereby fully and finally
releases,  acquits and forever  discharges  Microsoft  from any and all actions,
debts, claims, counterclaims,  demands, liabilities,  damages, causes of action,
costs,  expenses,  and compensation of every kind and nature  whatsoever,  past,
present or future, in law or in equity,  whether known or unknown (collectively,
"Claims"), which Microsoft had, has, may have had at any time in the past or may
have in the future against  Proginet  arising from,  related to or in connection
with  any   representation,   warranty,   covenant  or   agreement  of  Proginet
(collectively,  the "Proginet  Obligations") set forth in or contemplated by the
Asset  Purchase  Agreement  or  the  Related  Agreements,   including,   without
limitation,  any Claims  relating to any  Proginet  Obligation  set forth in any
exhibit  or  annex  to any such  agreement.  For  purposes  of this  Section  2,
references to Microsoft  shall be deemed to include any  subsidiary of Microsoft
and any other  entity  controlled  by  Microsoft  or under  common  control with
Microsoft.  Nothing  contained  in this  Section 2.2 shall in any way release or
reduce Proginet's obligations to Microsoft arising under this Agreement.

3. PROGINET REPRESENTATIONS AND WARRANTIES.  Proginet represents and warrants to
Microsoft on execution of this Agreement as follows:

         3.1.  ORGANIZATION;  GOOD  STANDING.  Proginet  is a  corporation  duly
organized,  validly  existing  and  subsisting  under  the laws of the  State of
Delaware and is duly qualified to do business as a foreign corporation and is in
good  standing in each  jurisdiction  in which the nature of its business or the
ownership of its property makes such qualification  necessary,  except where the
failure to be so qualified will not have a material  adverse effect on Proginet,
and has the corporate  power and authority to own and lease its  properties,  to
carry on its  business  as  presently  conducted,  and to  execute,  deliver and
perform its obligations under this Agreement.

         3.2. DUE AUTHORIZATION. The execution, delivery and performance of this
Agreement  have  been  duly  authorized  by all  requisite  corporate  action by
Proginet and will not violate or result in a breach of any provision of any law,
statute,  rule or  regulation,  any  order of any  court or  other  agency,  the
Certificate  of  Incorporation  (the

<PAGE>

"Charter") or Bylaws of Proginet (the "Bylaws"), or result in the creation or
imposition of any lien, charge or encumbrance of any nature whatsoever upon the
properties or assets of Proginet.

         3.3.  BINDING  OBLIGATION;  NO CONSENTS.  This  Agreement has been duly
executed and delivered by Proginet and  constitutes a valid and legally  binding
obligation of Proginet,  enforceable in accordance with its terms, except as the
enforcement  hereof  may  be  limited  by  applicable  bankruptcy,   insolvency,
reorganization, moratorium or similar laws affecting creditors' rights generally
or by general equitable  principles.  No registration or filing with, or consent
or  approval  of, or other  action  by, any U.S.  or  Canadian  federal,  state,
provincial or other governmental department,  commission,  board, bureau, agency
or instrumentality  or any third party is necessary for the execution,  delivery
and performance of this Agreement or for the issuance of the Shares contemplated
hereby other than those  required  under  applicable  U.S. or Canadian  federal,
state or provincial  securities  laws (the  "Securities  Consents and Filings").
Proginet  covenants  and  agrees  to make and  obtain  all  required  Securities
Consents and Filings within the applicable statutory periods prescribed for such
consents and filings.

         3.4. CAPITALIZATION.  The authorized capital stock of Proginet consists
of 40,000,000  shares of Common Stock, of which 12,375,180 shares are issued and
outstanding,  and 10,000,000  shares of Preferred  Stock, of which no shares are
issued and  outstanding.  All of the issued  and  outstanding  shares of capital
stock  have been duly  authorized  and  validly  issued and are  fully-paid  and
non-assessable,  and there are no preemptive rights with respect thereto. On the
date hereof,  2,000,000 shares of Common Stock were reserved for future issuance
under  Proginet's  Employee  Stock Option Plan (the "Plan").  On the date hereof
there were no outstanding  options,  warrants,  or other securities  convertible
into or  exchangeable  for shares of  Proginet's  equity  securities  other than
options to purchase  approximately  1,045,000 shares of Common Stock outstanding
under the Plan.

         3.5. PUBLIC INFORMATION.  Proginet has delivered to Microsoft copies of
all prospectuses and other public offering  documents as filed with the Canadian
Commission,  and all  periodic  and other  reports  filed by  Proginet  with the
Canadian  Commission  or the VSE since  November 1, 1995 and copies of all proxy
statements,   annual  information  forms  and  other  materials  distributed  to
Proginet's   shareholders   during  such  period   (collectively,   the  "Public
Information").  The Public  Information  is true,  correct  and  complete in all
material  respects  as of the  respective  dates of the  information  set  forth
therein,  and the  Public  Information,  as of its  respective  dates,  does not
contain an untrue  statement of a material fact or omit to state a material fact
required to be stated  therein or necessary to make the  statements  therein not
misleading in light of the circumstances under which such statements were made.

         3.6 REPORTING ISSUER; LISTING.  Proginet is a reporting issuer (as such
term is defined in applicable Canadian Legislation) only in British Columbia and
is a  reporting  issuer  in  good  standing  under  the BC Act.  No  outstanding
securities of Proginet,  including  the common stock of Proginet,  are listed on
any stock exchange other than the VSE.

4. MICROSOFT REPRESENTATIONS AND WARRANTIES. Proginet represents and warrants to
Microsoft on execution of this Agreement as follows:

         4.1.  ORGANIZATION;  GOOD  STANDING.  Microsoft is a  corporation  duly
organized,  validly  existing  and  subsisting  under  the laws of the  State of
Washington and is duly qualified to do business as a foreign  corporation and is
in good standing in each jurisdiction in which the nature of its business or the
ownership of its property makes such qualification  necessary,  except where the
failure to be so qualified will not have a material adverse effect on Microsoft,
and has the corporate  power and authority to own and lease its  properties,  to
carry on its  business  as  presently  conducted,  and to  execute,  deliver and
perform its obligations under this Agreement.

         4.2. DUE AUTHORIZATION. The execution, delivery and performance of this
Agreement  have  been  duly  authorized  by all  requisite  corporate  action by
Microsoft  and will not  violate or result in a breach of any  provision  of any
law, statute,  rule or regulation,  any order of any court or other agency,  the
Articles of Incorporation (the "Charter") or Bylaws of Microsoft (the "Bylaws"),
or result in the creation or imposition of any lien,  charge or  encumbrance  of
any nature whatsoever upon the properties or assets of Microsoft.

         4.3.  BINDING  OBLIGATION;  NO CONSENTS.  This  Agreement has been duly
executed and delivered by Microsoft and  constitutes a valid and legally binding
obligation of Microsoft, enforceable in accordance with its terms, except as the
enforcement  hereof  may  be  limited  by  applicable  bankruptcy,   insolvency,
reorganization, moratorium or similar laws affecting creditors' rights generally
or by general equitable  principles.  No registration or filing with, or consent
or  approval  of, or other  action  by, any U.S.  or  Canadian  federal,  state,
provincial or other governmental department,  commission,  board, bureau, agency
or instrumentality  or any third party is necessary for the execution,  delivery
and performance of this Agreement.

<PAGE>

         4.4 INVESTOR STATUS. Microsoft: (i) is an "accredited investor" as that
term is defined in Rule  501(a)(5) of Regulation D of the Securities Act of 1933
(the "1933 Act");  (ii) is acquiring  the Shares for its own account;  (iii) has
the knowledge and experience in financial and business matters and is capable of
evaluating the merits and risks of the prospective investment; and (iv) does not
intend to make a distribution of the Shares or otherwise act as an "underwriter"
within the meaning of Section 2(11) of the 1933 Act.

5.1 NOTICES.  All notices,  requests,  demands or other communications which are
required  or may be given  pursuant  to the terms of this  Investment  Agreement
shall be in  writing  and shall be deemed to have been duly given on the date of
delivery  if  delivered  by hand or upon  receipt  if  mailed by  registered  or
certified mail, postage prepaid,  return requested,  or sent by express courier,
or by facsimile  upon written  confirmation  of receipt by the recipient of such
notice to the party at the address set forth below, or such other address as may
be hereafter be designated in writing by the party:

To Microsoft:                               To Proginet:

         Microsoft Corporation              Proginet Corporation
         One Microsoft Way                  200 Garden City Plaza
         Redmond, WA  98052-6399            Garden City, NY 11530
         Attention: General Counsel,        Attention: Kevin M. Kelly
         Finance and Administration         Phone:  (516) 248-2000
         Phone: (425) 882-8080              Fax:  (516) 248-3360
         Fax: (425) 869-1327

    Copy to:                           Copy to:

    Preston Gates & Ellis LLP          Parker Chapin Flattau and Klimpl, LLP
    5000 Columbia Center               1211 Avenue of the Americas
    701 Fifth Avenue                   New York, NY 10036
    Seattle, WA 98104-7078             Attention:  James Alterbaum, Esq.
    Attention:  Gary J. Kocher, Esq.   Phone:  (212) 704-6000
    Phone:  (206) 623-7580             Fax: (212) 704-6288
    Fax:  (206) 623-7022

6.  COUNTERPARTS.  This  Agreement  may be executed in two or more  partially or
fully executed  counterparts each of which shall be deemed an original and shall
bind the signatory,  but all of which together shall  constitute but one and the
same instrument.

7.  SUCCESSORS  AND ASSIGNS.  This  Agreement  shall be enforceable by and shall
inure to the  benefit  of and be  binding  upon,  the  parties  hereto and their
respective  successors and assigns.  As used herein,  the terms  "successors and
assigns"  shall  mean,   where  the  context  so  permits,   heirs,   executors,
administrators,   trustees  and  successor  trustees,  and  personal  and  other
representatives.

8. SEVERABILITY.  If any provision of this Agreement is held to be unenforceable
for any  reason,  such  provision  and all  other  related  provisions  shall be
modified rather than voided, if possible,  in order to achieve the intent of the
parties to this  Agreement  to the  extent  possible.  In any  event,  all other
unrelated  provisions of this Agreement shall be deemed valid and enforceable to
the full extent.

9. CHOICE OF  LAW/AVAILABILITY  OF INJUNCTIVE  RELIEF.  This Agreement  shall be
governed by the laws of the State of  Washington.  The parties  acknowledge  and
agree that any breach of this Agreement  will result in irreparable  harm to the
non-breaching  party and its  Related  Parties,  and each of them,  and that any
breach shall entitle the non-breaching  party and its Related Parties,  and each
of them, to injunctive relief, among other remedies.

10. EFFECT OF HEADINGS. The section headings herein are for convenience only and
shall not affect the construction or interpretation of this Agreement.

11. PUBLIC DISCLOSURE. Proginet agrees that it will issue a press release (which
shall be solely a release of  Proginet)  which shall  announce the terms of this
Agreement (the "Announcement"). Proginet shall give Microsoft the opportunity to
review and approve the Announcement prior to the release thereof, which approval
shall not be

<PAGE>

unreasonably withheld. Microsoft and Proginet each agree that, other than as set
forth in the Announcement, they will make no other public disclosure of the
terms of this Agreement, the Asset Purchase Agreement or the relationship
between the parties without the express prior written consent of the other
party.

                  [Remainder of page intentionally left blank]

<PAGE>

         IN WITNESS WHEREOF,  the parties have entered into this Agreement as of
the date first written above.

MICROSOFT CORPORATION                   PROGINET CORPORATION

-------------------------------------   ----------------------------------------
By (sign)                               By (sign)

-------------------------------------   ----------------------------------------
Name (print)                            Name (print)

-------------------------------------   ----------------------------------------
Title                                   Title

-------------------------------------   ----------------------------------------
Date                                    Date

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