Document:

DISTRIBUTION AGREEMENT

        This  Distribution  Agreement  ("Agreement")  is made and  entered  into
effective as of November 9, 1996,("Effective  Date") by and between Acceleration
Software International Corporation, a Washington corporation ("Developer"),  and
Pointe Control, a Washington corporation ("Distributor").

                                    RECITALS

        A. Distributor is in businesses related to development, distribution and
sale   of   software   and   other   technology-related    products   (including
computer-related  products and  services),  and, with their  shareholders  other
parties, may form other related entities to further engage in such business.

        B. Developer and Distributor desire that Distributor  distribute certain
of Developer's  existing and future  software and other  technology in specified
geographic  areas, and desire to enter into a flexible  agreement  providing for
such distribution,  subject to future identification of the specific software or
other  technology,  the geographic areas of distribution,  pricing,  volumes and
other matters as may be determined by the parties as the necessity arises.

IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN, THE PARTIES AGREE
AS FOLLOWS:

1.   DEFINITIONS.

        1.01 "SOFTWARE" shall mean the software product(s)  described in Exhibit
A (as defined  below),  and  upgrades or other  modifications  to such  specific
product  (but  not  other  products  sold or  otherwise  distributed  with or in
connection with such product), as determined in the discretion of Developer.

        1.02  "SOFTWARE  COPY" shall mean an object  code copy of the  Software,
together  with a copy of any user  manual or other  documentation  or  materials
which are (or, if none,  ordinarily would be) customarily  supplied to End Users
by Developer with the Software, packaged for retail sale.

        1.03 "END USER" shall  mean,  in the case of  Software,  any third party
which obtains a Software Copy to fulfill its own computer  aided  instruction or
tool needs,  or, in the case of  Technology,  any third party which  obtains the
Technology in a form suitable to fulfill its needs.

        1.04 "TERRITORY" shall mean the geographic area identified in Exhibit A.

        1.05  "LOCALIZATION"  shall mean  modification  of  Software or Software
Copies ("Localized Software") or Technology ("Localized Technology") to meet the
needs of non-English speaking End Users in the Territory.  This may include code
changes,  additions  and  alterations  to the feature set,  changes in the data,
translation,  or new art or new  packaging,  with the  intent  to  provide  more
culturally  acceptable  Software or Technology to End Users speaking a principal
language in use in the Territory.

        1.06 "SALE" or  "SELLING" OR  "PURCHASE"  OR  "PURCHASING"  of Software,
Software  Copies or  Technology  shall mean,  with  respect to the  intellectual
property   rights  related  to  such  Software  or  Technology,   the  grant  or
acquisition,  respectively, of a license to use the Software or Technology. With
respect  to  tangible  property,  such  terms  shall be  accorded  their  common
meanings.  In either  case,  such terms shall (i)  include all sales,  licenses,
transfers or other dispositions for value, (ii) include use by Distributor,  and
(iii) be deemed a sale not later  than  when  recorded  as such on the books and
records of Distributor which are maintained for financial statement purposes.

        1.07 "EXHIBIT A" shall mean each such Exhibit attached to and made a
part of this Agreement as of

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this Agreement's  Effective Date, and each such Exhibit subsequently executed by
the  parties  and so made a part  of this  Agreement  as of the  Effective  Date
specified in such  subsequent  Exhibit.  Each such Exhibit A shall be construed,
together with this Agreement,  as a separate and distinct  agreement between the
parties,  without taking into account or  considering  any such other Exhibit A,
such that performance or default in connection with any one such Exhibit A shall
not determine or affect  performance or default as construed in connection  with
any such other  Exhibit A. In the event of any  conflict  between  the terms and
conditions  of any such  Exhibit A and this  Agreement  considered  without such
Exhibit  A, the terms and  conditions  of Exhibit A shall  take  precedence  and
control.

        1.08  "AFFILIATE"  shall mean any entity fifty  percent (50%) or more of
the value or control of which is owned, directly or indirectly,  by Distributor,
or their  shareholders,  or any combination of such parties, or any entity which
owns,  directly  or  indirectly,  fifty  percent  (50%) or more of the  value or
control of such entities or their shareholders.

        1.09 "TECHNOLOGY" shall mean the technology  described in Exhibit A. For
purposes of this  Agreement,  "technology"  shall be  construed  in its broadest
sense to include any information of actual or potential  commercial use or value
relating to or arising out of the business of  Developer,  regardless of whether
patented,  copyrighted  or otherwise  protected by law,  and  including  but not
limited to computer and other  programs,  trade secrets,  procedures,  concepts,
processes,   methodology,   design  data,  computer  software,   specifications,
research,  inventions or know-how,  any of which may include or be  incorporated
within or utilized in connection with either tangible or intangible  property or
services, or some combination of such property and services. Such technology may
be of various  forms or kinds  which  may,  in various  cases,  be  distributed,
licensed,  provided or otherwise  used.  "Potential  Technology" for purposes of
Section 8.09 shall be deemed to include (i) any  technology  which  Developer is
developing  or  considering  developing,  and as to which  Developer  has  given
Distributor  notice of such  development,  and (ii) all  performance-enhancement
computer utility software, specifically including that relating to CD-ROM drive,
hard drive and other storage media. In interpreting this Agreement in connection
with Technology (as  distinguished  from Software or Software  Copies),  a broad
interpretation shall be applied to all terms and conditions to effect the intent
of the parties that this Agreement  apply to future  transactions  in connection
with  such  Technology,  in  accordance  with any  Exhibit A made a part of this
Agreement after the Effective Date.

2.   APPOINTMENT AND AUTHORITY OF DISTRIBUTOR.

        2.01 APPOINTMENT AS DISTRIBUTOR FOR TERRITORY.  Subject to the terms and
conditions set forth in this Agreement, Developer hereby appoints Distributor as
Developer's distributor for the Software and/or the Technology in the Territory,
as  specified in Exhibit A, and  Distributor  hereby  accepts such  appointment.
"Distributor,"   "distribution"   and  similar   terms  shall  be  construed  as
appropriate  for the  circumstances  in cases in which  Technology  is marketed,
sold, or provided in connection with services or tangible property.  The parties
contemplate that Developer may appoint  Distributor,  and Distributor may accept
appointment  as  Developer's  distributor,  with respect to other or  additional
Software  and/or  Technology  in  the  Territory  or  other  territories,  which
appointment and acceptance, if any, shall be pursuant to additional Exhibit(s) A
in substantially  the form attached,  as executed by the parties and made a part
of this Agreement.

        2.02 EXCLUSIVE DISTRIBUTOR.  For so long as Distributor is performing in
compliance with this Agreement (including complying with any Minimum Performance
Requirements,  as defined in Section 10.03), Developer shall not grant any other
party rights to  distribute  Localized  Software or Localized  Technology in the
Territory.   Distributor   acknowledges   that  certain  of  Developer's   other
distributors are not prohibited from  distributing in the Territory  Software or
Technology  which  has not  been  localized,  but  Developer  will  not make any
Localized Software or Localized  Technology  available to such distributors with
respect to the Territory.

       2.03 OEM SALES AND SITE LICENSES. In addition to distribution of Software
Copies  provided  for in  Section  2.01,  Distributor  shall  have the  right to
distribute the Software to either (i) a computer hardware manufacturer or seller
desiring to bundle the Software with computer hardware (an "OEM Sale") or (ii) a
user desiring a license to use the Software on more than one (1) computer owned,
operated and used by such user in such

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user's place of business without acquiring individual Software Copies for use on
each such computer (a "Site License", as further interpreted within the ordinary
meaning of the term). Such Software shall consist of CD-ROM discs (i) which have
been acquired from Developer for, and only for, such  respective use, (ii) which
are packaged in a form not suitable for normal retail distribution to End Users,
and (iii) which are sold only in the Territory and for use or resale only in the
Territory.  In the case of any other OEM Sale or Site  License not  including an
individual  CD-ROM disc,  Distributor  shall further have the right to negotiate
the  preliminary  business terms of any such sale or license,  on a case-by-case
basis, for review, further negotiation,  and execution of a definitive agreement
by Developer  (who shall have the sole right to enter into any such  agreement),
in which case Distributor shall be compensated as provided in Exhibit A.

        2.04  RESPONSIBILITIES  OF DISTRIBUTOR.  Distributor shall, at its cost,
prepare  localized   versions  of  the  Software  and  Software  Copies  or  the
Technology,  and shall market and distribute  Software  Copies and Technology in
the Territory, including marketing and distribution in the Territory for resale.
Distributor  shall use its best efforts to pursue  aggressive sales policies and
procedures  (including marketing) to realize the maximum sales potential for the
Software or Technology,  and to establish and promote Developer's business name,
trademarks,  brandnames,  and similar attributes, in the Territory.  Distributor
shall not distribute or market the Software Copies or the Technology outside the
Territory.

        2.05  INDEPENDENT   CONTRACTORS.   The  relationship  of  Developer  and
Distributor  established by this  Agreement is that of independent  contractors,
and nothing  contained in this  Agreement  shall be construed to (i) give either
party the power to direct or control  the  day-to-day  activities  of the other,
(ii) constitute the parties as partners, joint ventures,  co-owners or otherwise
as  participants  in a joint or common  undertaking.  All financial  obligations
associated  with   Distributor's   business  are  the  sole   responsibility  of
Distributor.  All  sales  and  other  agreements  between  Distributor  and  its
customers are Distributor's exclusive responsibility and shall have no effect on
Distributor's  obligations  under this  Agreement.  Distributor  shall be solely
responsible  for, and shall indemnify and hold Developer free and harmless from,
any and all claims,  damages or lawsuits (including Developer's attorneys' fees)
arising out of the acts of Distributor, its employees or its agents. Distributor
shall not  constitute,  and  shall  take no action  which  would  cause it to be
treated as, a "permanent  establishment"  of Developer within the meaning of the
tax laws of any country.

3.   PRODUCTION OF SOFTWARE, SOFTWARE COPIES AND TECHNOLOGY.

        3.01 CD-ROM  DISCS AND OTHER MEDIA.  In the case of Software,  except as
otherwise  specifically  provided in Exhibit A, Developer shall, at its cost and
at a facility of its  selection,  reproduce  the object  code of  Software  onto
CD-ROM discs  (including  labeling and artwork) in a form suitable for packaging
and  distribution  to  End  Users  at  Developer's  cost  and at a  facility  of
Developer's selection. Localized Software will be reproduced by Developer from a
master copy of the Software  (including a master of labeling and artwork)  which
has been  Localized  and  provided by  Distributor  at  Distributor's  cost.  As
circumstances  may require or make advantageous (as determined in the discretion
of Developer), in particular in the case of Technology,  Developer may reproduce
and provide to Distributor  Software or Technology in other media or form. Under
no circumstances shall Distributor  replicate or otherwise duplicate Software or
Technology,  on  CD-ROM  discs  or  otherwise,  or  obtain  such  replicated  or
duplicated  Software  from  any  source  other  than  Developer.  Possession  by
Distributor  of a "Gold Disc" or other  medium  commonly  used to  replicate  or
duplicate  software shall not be construed as evidence that  Distributor has any
right to replicate or duplicate Software.

        3.02   DOCUMENTATION  AND  PACKAGING.   Distributor  shall  produce  all
documentation,  packaging and other items customarily supplied to End Users, and
shall  assemble  such  items,  all at  Distributor's  cost.  Such items shall be
provided to Developer not less than fifteen (15) days prior to  commencement  of
production for  Developer's  review and approval,  and  production  shall not be
commenced  until  approved  in  writing by  Developer,  except  that  failure by
Developer to approve or disapprove  within  fifteen (15) days shall be deemed to
be approval.

     3.03 MUTUAL ASSISTANCE.  Distributor and Developer shall cooperate and
provide reasonable and timely

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assistance to one another in connection with preparation of Localized Software
or Technology.

4.   END USER RESTRICTIONS.

     Except as otherwise provided under applicable law:

     4.01 Only a  personal,  non-transferable,  and  non-exclusive  right to use
Software or Technology (on a single  designated  system shall be granted to each
End User.

        4.02  Developer  retains  all  rights  in  and  title  to  Software  and
Technology,  including  the  media on which  it is  provided,  and in and to all
copies,  and no title to the  Software  or such media is  transferred  to either
Distributor or any End User.

        4.03 The End User may not copy the Software or Technology (except in the
case of  Software  ,except  for one (1) copy  for  backup  purposes  and only as
necessary to use the  Software on such End User's  designated  system),  and all
such copies shall contain all copyright and other proprietary notices or legends
of  Developer  on the  Software as  delivered to the End User.) No copies of the
Software documentation may be made by the End User.

        4.04  Developer  shall not be  liable  to the End User for any  general,
special, direct, indirect,  consequential,  incidental, or other damages arising
out of the license to use the Software .

        4.05  Software   shall  be  provided  to  the  End  User  subject  to  a
"shrink-wrap" or other appropriate license agreement,  which shall be subject to
approval by Developer under Section 3.02.

5.   RESTRICTIONS ON DISTRIBUTOR.

        Distributor agrees (i) in the case of Software, not to reverse assemble,
decompile, or otherwise attempt to derive source code from the Software, and, if
source  code is  provided,  to use such code solely for  necessary  localization
purposes,  not to disclose  such code to persons other than those with a need to
know for such  purposes  (and then only  subject to a  non-disclosure  agreement
approved in advance by  Developer),  and to return or destroy all copies of such
source code  immediately  upon the earlier of completion of  localization or the
request  of  Developer;  (ii)  in the  case of  Technology,  not to  attempt  to
determine any Confidential  Information  (within the meaning of Section 14) from
the Technology,  (iii) to comply with all export,  re-export,  and anti-boycott,
restrictions  and  regulations  of the  Department  of Commerce or other  United
States agency or authority,  and not to transfer,  or authorize the transfer, of
the Software or Technology to a prohibited  country or otherwise in violation of
any such  restrictions or  regulations,  and (iv) to comply with all other laws,
foreign and domestic, in connection with the Software and Technology.

6.   PAYMENT.

        6.01 PAYMENT AMOUNT. Distributor agrees to pay Developer the amounts set
forth in Exhibit A, plus shipping to points outside of the continental  U.S., if
any.  Such  amounts  specified  shall be net of any  withholding  or similar tax
imposed by the taxing  jurisdiction in which  Distributor  does business or with
respect to which or from which  payments to Developer  are made,  and net of any
customs duty, tariff or similar charge.

        6.02 TIMING OF PAYMENTS. In the case of Software or Technology,  payment
to Developer for which is dependent upon delivery to Distributor of CD-ROM discs
or other media or tangible  property,  Payment shall be made prior to release to
Distributor  of such  property,  except as otherwise  specified in Exhibit A. In
other  cases,  including  percentage  royalties  or  amounts  dependent  upon or
affected by Distributor's gross receipts, net income, or other factors,  payment
to Developer  shall be made not later than thirty (30) days after the end of the
month in which such event occurs or such amounts may be  reasonably  determined.
All payments  required to be made to Developer  pursuant to this Agreement shall
be made to Developer in the State of Washington, USA, at its office or at such

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banking  institution  as Developer may direct from time to time, in  immediately
available funds, in legal tender of the United States of America.

        6.03 AUDIT RIGHTS. Distributor shall maintain accurate books and records
pertaining  to the  production  and  distribution  of  Software  or  Technology,
including  packaging,  documentation,  artwork,  and all other components of the
Software Copies or Technology in whatever form  distributed,  and similar rights
as to Software  or  Technology  sold in other than the form of Software  Copies.
Developer's  designated  auditors shall have the right, upon reasonable  request
and during ordinary  business hours, to examine such books and records,  and the
physical  inventory of Software Copies.  Developer shall be entitled to exercise
such right to examine upon the end of each calendar  quarter with respect to the
first year of the term of this Agreement  (including each applicable Exhibit A),
and shall  thereafter  be entitled  to exercise  such right upon the end of each
calendar  semi-annual period or, if more frequent,  upon the end of any calendar
quarter  following  any such  examination  in which  it is  determined  that any
underpayment  of five percent (5%) or more was made by Distributor to Developer.
Further,  Distributor  shall  require  its third  party  suppliers,  vendors and
customers (including printers,  manufacturers,  distributors,  and resellers) to
allow  Developer to examine books and records and physical  inventories  of such
parties  pertaining  to the  production,  distribution  and sale of  Software or
Technology.  Such  examination  shall  be at  Developer's  expense,  unless  the
examination  reflects an underpayment of five percent (5%) or more of the amount
that should  have been paid for the period  audited,  in which case  Distributor
shall bear the  expense of such  audit.  Interest  of one and one- half  percent
(1.5%) per month shall paid on payments not timely made.

        6.04 TRANSACTIONS WITH AFFILIATES.  All transactions by Distributor with
Affiliates  shall be at fair market prices for comparable  transactions  between
unrelated parties,  including a reasonable profit on such  transactions.  In any
case where  payment by  Distributor  to Developer is a percentage  royalty based
upon  Distributor's  receipts,  or is  otherwise  dependent  upon or affected by
Distributor's sales price or other amount received,  for purposes of determining
Distributor's  payment to Developer,  Distributor's  sales price or other amount
received from an Affiliate shall be disregarded,  and instead shall be deemed to
be the amount received from the first non-Affiliate making such payment.

        6.05  BUNDLED  TRANSACTIONS.  In any case where  payment to Developer by
Distributor is a percentage  royalty or is otherwise  dependent upon or affected
by  Distributor's  gross  receipts,  sales  price,  net  income or other  amount
received  with respect to a Bundled  Transaction,  for  purposes of  determining
Distributor's  payment to  Developer,  such amount  received  shall be deemed to
include all gross receipts received in connection with such Bundled Transaction,
without  regard to the allocation or  characterization  of the gross receipts as
relating to the Software or Technology  or to other aspects of the  transaction.
For purposes of this Agreement, "Bundled Transaction" shall mean any transaction
in which  Distributor  receives  payment for  Software or  Technology  and other
property or services in a single  integrated  transaction,  and "gross receipts"
shall  mean the total  amount  realized,  without  reduction  for cost of sales,
returns or allowances, or expenses of any kind.

        6.06 SECURITY  INTEREST.  Distributor hereby grants Developer a security
interest in accounts or other amounts  receivable by  Distributor  in connection
with the sale of the  Software or  Technology  or Software  Copies.  Distributor
further  agrees that in event of a default in payment of amounts  due  Developer
which is not cured  within  fifteen  (15) days as  provided  in  Section  10.04,
Developer may take all reasonable  action to perfect such security interest (or,
where appropriate, take comparable action under the laws of a jurisdiction other
than the U.S.).  Distributor  shall assist  Developer in taking any such action,
including by executing documents reasonably requested by Developer to do so.

7.  DEVELOPER'S WARRANTY.

        7.01  WARRANTY.   Developer  warrants  that  the  Software  provided  to
Distributor by Developer in connection  with  Localization  by Distributor  will
conform to the  Software or  Technology  then being  distributed  by  Developer.
Developer  further  warrants  that  upon  delivery,  and  for  sixty  (60)  days
thereafter,  the media on which the Software or Technology is delivered  will be
free of defects in material and workmanship. Should any such

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defects appear in material and  workmanship  appear during the warranty  period,
Developer  shall, as its sole  obligation,  replace such defective copy upon its
prompt return to Developer.

        7.02  LIMITATION OF LIABILITY  AND REMEDIES.  EXCEPT AS SET FORTH ABOVE,
DEVELOPER  MAKES  NO  REPRESENTATION  OR  WARRANTY,   EXPRESS  OR  IMPLIED,  AND
SPECIFICALLY  EXCLUDES ANY  WARRANTY  THAT ANY  SERVICES,  MATERIALS OR PRODUCTS
FURNISHED  BY  DEVELOPER  ARE  FIT  FOR  ANY  PARTICULAR   PURPOSE  AND  FURTHER
SPECIFICALLY  EXCLUDES ANY IMPLIED  WARRANTIES  OF  MERCHANTABILITY.  THE STATED
WARRANTIES,  COVENANTS  AND REMEDIES SET FORTH IN THIS  AGREEMENT ARE IN LIEU OF
ALL OTHER  OBLIGATIONS  OR  LIABILITIES  ON THE PART OF DEVELOPER FOR DAMAGES OR
OTHER RELIEF,  INCLUDING, BUT NOT LIMITED TO, SPECIAL, INDIRECT OR CONSEQUENTIAL
DAMAGES  THAT IN ANY WAY ARISE OUT OF OR IN  CONNECTION  WITH THE USE AND/OR THE
PERFORMANCE OF SUCH SERVICES,  MATERIALS OR PRODUCTS FURNISHED BY DEVELOPER.  IN
NO EVENT  SHALL ANY  LIABILITY  OF  DEVELOPER  TO  DISTRIBUTOR  PURSUANT TO THIS
AGREEMENT  EXCEED THE AMOUNT RECEIVED BY DEVELOPER FROM DISTRIBUTOR WITH RESPECT
TO THE TECHNOLOGY (INCLUDING SOFTWARE) GIVING RISE TO THE LIABILITY.

8.  ADDITIONAL OBLIGATIONS OF DISTRIBUTOR.

        8.01  ESTIMATED  DISTRIBUTION  DATE.  Except as  otherwise  provided  in
Exhibit A, upon receipt of  Developer's  localization  kit,  Distributor  shall,
within one (1) week,  provide Developer with an estimated  distribution date for
the related Software or Technology.  This  distribution  date must be within two
(2) calendar months after receipt of the localization  kit. Failure to meet such
distribution  date shall be a  material  breach  within  the  meaning of Section
10.04.

        8.02 PROMOTION OF SOFTWARE OR TECHNOLOGY.  Distributor shall, at its own
expense,  vigorously  promote the  distribution  of the  Software or  Technology
within the Territory. Such promotion shall include, but shall not be limited to,
advertising  the Software or Technology in  publications  within the  Territory,
participating in trade shows, establishing appropriate distribution channels and
merchandising  programs,  and  directly  soliciting  orders from  customers  for
Software or Technology.

        8.03 TECHNICAL SUPPORT. Distributor shall provide the level of technical
support for all  Localized  Software or  Technology  equivalent  in all material
respects to that which Developer provides its distributors and End Users, within
the U.S.

        8.04 MARKETING AND SALES MATERIALS.  Distributor shall be responsible to
produce appropriate sales and marketing  materials,  all of which are subject to
advance  approval  of  Developer.  In the event  Developer  fails to  approve or
disapprove of any such materials  within  fifteen (15) days after  submission to
Developer by Distributor  with a request for approval,  such materials  shall be
deemed approved.  Developer shall cooperate and provide reasonable assistance to
Distributor in connection with preparation of such materials.

     8.05 NO ASSIGNMENT.  Distributor shall not assign or otherwise transfer its
rights or obligations under this Agreement.

        8.06 GOVERNMENTAL  APPROVALS.  Distributor shall advise Developer of any
governmental  permits or  approvals  required  to  consummate  the  transactions
contemplated  by this  Agreement,  shall obtain such permits or  approvals,  and
shall provide evidence thereof to Developer.

        8.07  REGISTRATION  OF USERS.  Distributor  shall include a registration
form in Software  Copies,  shall use its best efforts to obtain the registration
of End Users,  and shall provide all such End User  Registration  information to
Developer  promptly  (and in any event within thirty (30) days) after the end of
each  calendar  quarter.  Distributor  shall  similarly  use its best efforts to
identify customers of Technology and make such information available to

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Developer.

        8.08 MARKET DATA.  Distributor  shall provide Developer with market data
relating  to the  Software  or  Technology,  including  (i)  monthly  numbers of
Software or Technology  sold to other  distributors,  resellers,  and End Users,
and, where  feasible,  the identity of the parties to whom sold,  (ii) marketing
and merchandising  programs  completed and planned,  (iii) names of distributors
and  resellers  offering  the  Software  and  Technology,  and  (iv)  any  other
information  of  benefit  to  Developer  in  cooperating  with  Distributor  and
developing  modifications  to the Software or  Technology  or new  products.  In
particular,   Distributor  shall  give  Developer  notice  of  all  Software  or
Technology  "bugs"  promptly  upon  discovery  and, in the case of severe  bugs,
within forty-eight (48) hours after discovery.

        8.09 OTHER PRODUCTS OR SERVICES.  Distributor  acknowledges  that in the
course of the performance of this Agreement,  certain valuable  confidential and
proprietary  information  will be  furnished by  Developer  to  Distributor  and
because of the unique nature of such information, it is necessary to provide for
non-competition  obligations in order to protect such  information.  In light of
the above, during the term of this Agreement and, at the discretion of Developer
exercisable  by notice to  Distributor  not later than the  non-renewal or other
termination  of this  Agreement,  for a  period  of six (6)  months  after  such
non-renewal or other  termination,  Distributor  shall not,  without the express
written approval of Developer, commence marketing,  distribution,  sale or other
providing  of any  technology  (as  such  term is  described  in  Section  1.09,
including  computer  software) or other  product or service which may tend to be
directly  or  indirectly  competitive  or similar  in  purpose  or use with,  or
otherwise  related to, the Software or  Technology or Potential  Technology  (as
defined in Section 1.09), as determined in Developer's  discretion.  The parties
acknowledge  that  breach of this  Section  would  cause  irreparable  damage to
Developer,  for which  Developer  would not have an adequate remedy for damages,
such that,  in the event of any such  breach,  in  addition  to other  remedies,
Developer may apply to a court to  specifically  enforce the  provisions of this
Section.

9.  ADDITIONAL OBLIGATIONS OF DEVELOPER.

     9.01 NEW  DEVELOPMENTS.  Developer  shall  provide  Distributor  reasonable
notice of new developments in connection with the Software or Technology.

     9.02 MARKETING ASSISTANCE.  Developer shall provide Distributor with market
data which is obtained by Developer  and relates to the Software or  Technology,
and which may benefit Distributor in distributing the Software or Technology.

10.  TERM, RENEWAL AND TERMINATION.

        10.01 TERM.  The Effective Date of this Agreement is as set forth above,
and the  Effective  Date of each  subsequent  Exhibit  A is as set forth in such
Exhibit.  The term of this Agreement shall be one (1) year,  commencing with its
Effective Date, and the term with respect to each subsequent  Exhibit A shall be
one (1) year,  commencing  with its  respective  Effective  Date, in either case
unless renewed or terminated earlier under the provisions of this Section 10.

        10.02 AUTOMATIC  RENEWAL AND EXTENDED TERM. In any case in which Exhibit
A includes  Minimum  Peformance  Requirements  (as defined in Section 10.03) and
Developer  has not granted to any third  party  rights to  distribute  Localized
Software or Localized  Technology under its option to do so under Section 10.03,
the term of this  Agreement  shall be  automatically  renewed for an  additional
period of one (1) year upon the end of each one (1) year  term.  This  Agreement
shall not so automatically renew where no Minimum  Performance  Requirements are
so included in Exhibit A. Further, Exhibit A may specifically provide for a term
of more than one (1) year,  including a perpetual term (an "Extended  Term"), in
connection  with,  among  other  terms and  conditions,  for an advance or other
lump-sum royalty or other payment.  Such Extended Term shall be provided only by
specific  language  to that  effect,  and  shall not  otherwise  be  implied  or
construed  from the terms of this Agreement or any Exhibit A. In the case of any
Extended Term,  Exhibit A shall be deemed to include annual Minimum  Performance
Requirements for

                                        7
<PAGE>

the duration of such Extended Term, and such deemed Requirements shall be deemed
to be met on an annual basis for the duration of such Extended Term.

        10.03  CONVERSION  TO  NON-EXCLUSIVE   DISTRIBUTORSHIP.   In  the  event
Distributor  fails to meet  Minimum  Peformance  Requirements  for any period in
which such  Requirements are provided for in Exhibit A, Developer shall have the
ption to grant to any third party  rights to  distribute  Localized  Software or
Localized Technology in the Territory  notwithstanding the provisions of Section
2.02.  Such  option  may  be  exercised  by  giving  notice  to  Distributor  of
Developer's  desire to grant such rights at any time  within  eleven (11) months
after  the  end  of  any  period  in  which   Distributor  fails  to  meet  such
Requirements. The fact that after such failure Developer meets such Requirements
shall not  affect  Developer's  option or grant of  rights.  Such  rights may be
granted for the remainder of the term of this Agreement or such longer period as
Developer  shall  desire.  Failure by  Distributor  to meet any of such  Minimum
Performance  Requirements  shall  not,  however,  constitute  a  breach  of this
Agreement.  "Minimum  Performance  Requirements"  for purposes of this Agreement
shall mean any such requirements specifically described as such on Exhibit A.

        10.04  RETENTION,  RETURN AND  TRANSFER OF  MATERIALS  AND  INTELLECTUAL
PROPERTY RIGHTS. All Software or Technology,  trademarks, trade names, packaging
trade  dress,  patents,  other  intellectual  property  rights,  (including  all
derivative works and enhancements) samples,  literature and sales aides of every
kind shall remain the property of Developer,  regardless of whether  provided by
Developer to Distributor or whether  created,  developed,  modified or otherwise
obtained  by  Distributor.  Immediately  upon  termination  of  this  Agreement,
Distributor  shall ship or transfer to Developer,  as Developer may direct,  all
such items in its  possession (or  ownership,  if any), at Developer's  expense.
Distributor  shall further  execute any and all such  documents as Developer may
request in order to convey and transfer title to any such property to Developer.
Distributor  shall not make or retain  any copies of any  confidential  items or
information  which may have been entrusted to it. Effective upon the termination
of this Agreement, Distributor shall cease to use all trademarks, service marks,
tradenames, packaging trade dress, or other intellectual property rights used in
connection with Software or Technology by either Distributor or Developer.

        10.05  BREACH AND  TERMINATION.  Prior to  terminating  this  Agreement,
requesting  arbitration,  filing suit or taking  similar action upon a breach of
this Agreement by either party, the non-breaching party shall give the breaching
party notice of the basis for  asserting  such breach.  If the  breaching  party
fails to cure such breach within thirty (30) days,  and the breach is a material
breach, the non-breaching  party may terminate this Agreement.  If the breach is
the non-payment of amounts due under this Agreement,  the breach shall be deemed
to be a material breach, and the breaching party shall have fifteen (15) days to
cure such breach.

        10.06 WAIVER OF LIABILITY ON  TERMINATION.  Should this Agreement or any
portion  thereof  expire,  be  terminated  or not be renewed at any time for any
reason,  neither party will be liable to the other  because of such  expiration,
termination or non-renewal for reimbursement of costs or expenses or for damages
on account of the loss of prospective profits, anticipated sales, goodwill or on
account  of  expenditures,  inventory,  investments,  leases  or  commitment  in
connection  with the  business of  Developer  or  Distributor,  or for any other
reason whatsoever flowing from such termination or expiration. Termination shall
not, however, relieve either party of any obligation incurred before termination
or of  liability  for  breach  of any  of  the  provisions  of  this  Agreement.
Distributor hereby specifically  waives, to the maximum extent permitted by law,
any claims for compensation damages arising out of the termination or expiration
of this Agreement in accordance with its terms.

11.  PROPERTY RIGHTS.

        11.01 OWNERSHIP. Distributor agrees that Developer owns all right, title
and interest in the  Software or  Technology  now or  hereafter  subject to this
Agreement, and in all patents, trademarks, trade names, inventions,  copyrights,
know-how,  trade secrets, and any other proprietary  information relating to the
design,  operation  or  maintenance  of the  Software  or  Technology,  and  all
marketing,  sales or other  promotional  materials,  trade  dress,  and  artwork
utilized in connection  with the Software or Technology.  Distributor  shall not
record or file or  otherwise  attempt to  establish  ownership  of such items in
Distributor's name. The use by Distributor of any of these property

                                        8
<PAGE>

rights is authorized only for the purposes set forth in this Agreement, and upon
termination  of this  Agreement  for any reason such  authorization  shall cease
except to the extent  necessary for  Distributor  to provide  maintenance to its
existing customers for the Software or Technology. Software source code shall be
disclosed by Developer to Distributor only in Developer's  sole discretion.  The
parties agree that their mutual  intention is that after any termination of this
Agreement  (or  after   Distributor's   rights  under  this   Agreement   become
non-exclusive),  Developer shall have all legal rights, and shall be allowed, to
continue manufacture, distribution and sale of the Software or Technology in the
form  and  manner  which  the  Software  or  Technology  were  so  manufactured,
distributed and sold during the term of this Agreement.

        11.02 TRADEMARKS.  Distributor  shall distribute  Software or Technology
using only  trademarks,  tradenames  and  servicemarks  expressly  authorized in
writing by  Developer  ("Trademarks").  Distributor  shall  assist  Developer in
selecting  local  Trademarks,  the  sole  owner of  which  shall  be  Developer.
Distributor admits the validity of, and agrees not to challenge,  any Trademarks
and agrees that all rights that may be acquired by use of Trademarks shall inure
to the sole benefit of Developer. Where Developer, in its sole discretion, deems
it  appropriate,   Distributor  shall  be  recorded  as  a  registered  user  of
Trademarks,  and will cooperate  with  Developer to be so recorded.  Distributor
shall not use the  Trademarks or any part thereof as part of its name, and shall
not use any similar name, trademarks,  service mark or other designation similar
to the Trademarks.  Distributor agrees not to register any trademarks similar to
the  Trademarks,  and to assign  any such  registrations  to  Developer.  If any
application for registration which is or has been filed by Distributor  relates,
as determined in the sole  discretion of Developer,  to a mark which is similar,
deceptive or misleading with respect to any of the Trademarks, Distributor shall
reimburse  Developer  for all cost and  expenses  of any  opposition  or related
proceedings,  including  attorneys fees,  brought by Developer or its authorized
representative to challenge,  oppose or cancel such application or registration.
In the event  Distributor  learns of any actual or threatened  infringement of a
Trademark or any passing-  off, or any third party alleges that any Trademark is
liable  to  cause  deception  or  confusion  to the  public,  Distributor  shall
immediately   notify  Developer,   and  Distributor  shall  provide   reasonable
assistance   to  Developer  if  Developer   determines  to  commence  or  defend
proceedings.  Any such proceeding, and any recovery in such proceeding, shall be
equally divided  between  Developer and  Distributor.  Nothing in this Agreement
shall be  construed to require  Developer  to defend or enforce the  Trademarks.
Distributor shall comply with all applicable laws and regulations  pertaining to
the proper use and  designation of the  Trademarks in the  Territory,  and shall
notify Developer  promptly (and in any event within thirty (30) days) of any law
or regulation which is inconsistent  with any provision of this Agreement.  Upon
request,  Distributor  agrees to assist Developer in the filing and recording of
Developer's trade names, copyrights, patents and trademarks in Territory.

12.  INDEMNIFICATION OF DEVELOPER.  Distributor will defend,  indemnify and hold
Developer harmless from and against any and all actions,  damages,  liabilities,
costs,  and expenses  (including but not limited to attorney's fees) incurred by
Developer  as a  result  of (i)  any  false  or  misleading  statement  made  by
Distributor  to  any  customer  or  potential  customer;   (ii)  any  breach  by
Distributor  of any terms or conditions set forth in this  Agreement,  or of any
representations  or warranties made by Distributor  under this Agreement,  (iii)
any action taken by  Distributor in the  performance of this Agreement  which is
not authorized by Developer,  or (iv)  infringement or violation with respect to
the Territory of any patents, copyrights, trade secrets, or other proprietary or
intellectual  property  rights  by any  product  owned  by  Developer  which  is
localized or distributed by Distributor.

13. INDEMNIFICATION OF DISTRIBUTOR.  Developer warrants that as of the Effective
Date of any Exhibit A attached to this  Agreement,  the  Software or  Technology
specified  in such  Exhibit A does not  infringe  upon any  copyrights  or trade
secrets of any third party.  Developer agrees, at its own expense, to defend and
indemnify Distributor, if necessary,  against any actions,  liabilities,  costs,
damages,  claims,  losses and expenses  (including but not limited to attorney's
fees) arising out of Developer's breach of this warranty.

14.  CONFIDENTIALITY.  Distributor  acknowledges that it may acquire information
which is proprietary or confidential to Developer,  including  technology within
the  meaning  of  Section  1.09,  or  financial,  product,  sales  or  marketing
information  (collectively,  and in whatever form, "Confidential  Information").
Distributor  agrees to hold such  Confidential  Information in strict confidence
and not to copy, reproduce, sell, assign, license, market, transfer

                                        9
<PAGE>

or  otherwise  disclose  such  information  to  third  parties  or to  use  such
information  for any purposes  without the express written consent of Developer,
and to advise  Distributor's  employees,  agents,  and  representatives of their
obligation  to  keep  such  information  confidential.   Distributor  shall  use
reasonable efforts to identify and prevent any unauthorized use or disclosure of
Confidential  Information,  and shall advise Developer in the event  Distributor
learns or has reason to  believe  that any  person  has  violated  or intends to
violate the terms of this  Agreement,  and will cooperate in seeking  injunctive
relief  against  such  person.  Distributor  shall  have the  right to  disclose
Confidential  Information to its employees,  agents and third party  consultants
who  have a need  to  know  such  information  in the  course  of  localization,
marketing or distribution of the Software or Technology, provided that each such
person  signs a  nondisclosure  agreement  with respect to such  information  to
protect its confidentially.

15.  ARBITRATION,  JURISDICTION AND VENUE. Except as provided below, any dispute
or claim between the parties shall be finally settled by binding  arbitration in
Seattle, Washington under the Rules of the American Arbitration Association by a
single arbitrator who is knowledgeable about the development,  distribution, and
licensing of computer software or technology,  as appropriate.  In resolving all
such disputes,  the arbitrator shall apply the law of the State of Washington as
more fully set forth in Section 16. Developer may, however,  at its option, seek
a temporary restraining order, preliminary injunction,  permanent injunction and
any other form of equitable relief from any court having  jurisdiction  over the
subject matter and personal  jurisdiction over Distributor.  Distributor  hereby
consents to and submits to the  jurisdiction of federal and state courts located
in the State of Washington.  Should any such action be commenced in the State of
Washington,  Distributor  agrees not to assert,  and hereby waives, any defenses
based  on  improper  venue,   inconvenience  of  the  forum,  lack  of  personal
jurisdiction  or  sufficiency  of service  of  process or the like.  Distributor
hereby   appoints  the  Secretary  of  State  of  the  State  of  Washington  as
Distributor's agent for service of process.

16. CHOICE OF LAW. This Agreement shall be governed by and construed under
the laws of the State of Washington without regard to conflict of laws
principles or the U.N. Convention on Contracts for the International Sale of
Goods.

17. LEGAL  EXPENSE.  The  prevailing  party in any legal  action or  arbitration
brought by one party  against the other arising out of this  Agreement  shall be
entitled,  in  addition  to any  other  rights  and  remedies  it may  have,  to
reimbursement for its expenses,  including court costs and reasonable attorney's
fees.

18. ENTIRE AGREEMENT: AMENDMENT. This Agreement constitutes the entire
agreement of the parties relating to its subject matter and supersedes any prior
agreements, written or oral. This Agreement may be revised or amended only in a
writing executed by the parties.

19. NOTICES.

        Any  notices  or other  communications  given in  connection  with  this
Agreement  will be  validly  given if in  writing,  and will be  effective  upon
personal delivery or upon delivery if sent by recognized carrier or by facsimile
transmission,  with  confirmation  of the  time  and  date of  delivery,  to the
following  or such other person as the party may  respectively  designate in the
manner set forth in this Section:

If to Developer:    Acceleration Software International Corporation
                    1223 N.W. Finn Hill Road
                    Poulsbo, WA 98370, United States
                    FAX 360-598-2450

If to Distributor:  Pointe Control, Inc.
                    P.O.Box 1462
                       North Bend, WA 98405, United States

                                       10
<PAGE>

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

"Developer"                            "Distributor"

Acceleration Software Int. Corp.       Point Control, Inc.
a Washington corporation               a Washington corporation

by /s/ Clint T. Ballard                by /s/ Robert Miracle
  -----------------------------          --------------------------------
  Clint T. Ballard, its C.E.O.           Robert Miracle, its Managing Director

                                       11
<PAGE>

                                 Exhibit "A" to
                  Distribution Agreement dated November 9, 1996

Effective  Date.  February  1, 1998 for this  Exhibit  A, which  supercedes  the
International Distributor Agreement entered into on November 2, 1995 and further
amended  on  February  16,  1996 and the  Exhibit A dated  August  12,  1997 for
"virtual CD-ROM" between  Acceleration  Software  International  Corporation and
Pointe Control.

Territory. Japan.

Software or  Technology.  The Software  shall  consist of  Developer's  software
programs  commonly  known as "Phantom CD 2.0" for Windows 95. Phantom CD 2.0 may
be sold in Retail Sales,  OEM Sales,  and Site  Licenses  (within the meaning of
Section 2.02 and this Exhibit A).

Payment.  CD-ROM Discs for Retail  Sales.  Payment to Developer  shall be in the
amount of Twenty Dollars (US$20) for each CD-ROM disc containing Phantom CD 2.0,
which is purchased from Developer for resale to an End User in a transaction not
in connection  with an OEM Sale or a Site License (within the meaning of Section
2.03) ("Retail Sale")

CD-ROM Discs for OEM Sales and Site Licenses. Payment to Developer in connection
with both OEM Sales and Site Licenses (within the meaning of Section 2.03) shall
be sixty percent (60%) of the gross receipts.

Minimum Performance Requirements. Net of product returns/exchanges,  Distributor
shall  purchase Ten  Thousand  (10,000)  copies  every three  months  commencing
February 1, 1998,  during the term of this Agreement for  distribution in Retail
Sales in  accordance  with this  Exhibit A. The  initial  order shall be for Ten
Thousand (10,000) copies.

Incorporation into Distribution Agreement.  This Exhibit A is hereby made a part
of the  Distribution  Agreement  dated  November 9, 1996,  between  Acceleration
Software and Pointe Control,  Inc., including but not limited to Sections 15 and
16  providing  that  disputes  shall be settled by binding  arbitration  in, and
according  to the laws of,  the State of  Washington,  U.S.A.,  and the  parties
executing  below  hereby agree to be bound by the terms and  conditions  of such
Agreement.

"Developer"                            "Distributor"

Acceleration Software Int. Corp.,      Pointe Control, Inc.
a Washington corporation               a Washington corporation

by    /s/ Clint L. Ballard             by   /s/ Robert Miracle
   ------------------------------         -----------------------------
   Clint L. Ballard, its C.E.O.           Robert Miracle, its Managing Director

<PAGE>

                                 Exhibit "A" to
                  Distribution Agreement Dated November 9, 1996

Effective Date.  August 14, 1998 for this Exhibit A.

Territory.  Japan.

Software or Technology.  The Software shall consist of Developer's programs
called SuperFassst! '98.

Payment.  Payment to Developer shall be US $750,000 (seven hundred fifty
thousand dollars) according to the following schedule:

1. Final Acceptance of production master        $375,000
2. September 1st, 1998                          $ 75,000
3. October 1st, 1998                            $ 75,000
4. November 1st, 1998                           $ 75,000
5. December 1st, 1998                           $ 75,000
6. January 1st, 1998                            $ 75,000

Total:                                          $750,000

Upon  receipt by Developer of the Total  according  to the  schedule  above,  an
Unlimited  License for the Software will be granted.  Upon receipt of payment 1,
for $375,000  above,  all subsequent  payments are an irrevocable  obligation of
Pointe Control and Source. In the event of a delay of any payment by 3 days, all
unpaid amounts become due immediately  with interest of 0.05% per day compounded
daily to accrue  immediately.  Both parties agree that at the sole discretion of
the Developer, other remedies can be chosen which may include but not be limited
to, immediate termination, conversion to non-exclusive, recalculation of amounts
due based on units manufactured, etc.

Incorporation into Distribution Agreement.  This Exhibit A is hereby made a part
of the  Distribution  Agreement  dated  November 9, 1996,  between  Acceleration
Software and Pointe Control,  Inc., including but not limited to Sections 15 and
16  providing  that  disputes  shall be settled by binding  arbitration  in, and
according  to the laws of,  the State of  Washington,  U.S.A.,  and the  parties
executing  below  hereby agree to be bound by the terms and  conditions  of such
Agreement.

"Developer"                            "Distributor"

Acceleration Software Int. Corp.,      Pointe Control, Inc.
a Washington corporation               a Washington corporation

by   /s/ Clint L. Ballard              by   /s/ Robert Miracle
   -----------------------------          -------------------------------------
   Clint L. Ballard, its C.E.O.           Robert Miracle, its Managing Director

<PAGE>

                                 Exhibit "A" to
                  Distribution Agreement Dated November 9, 1996

Effective Date.  January 20th, 1999 for this Exhibit A.

Territory.  Japan.

Software or Technology.  The Software shall consist of Developer's products
called:
        1. SuperFassst!  iMacintosh
        2. d-Time MP3
        3. d-Time iMacintosh
        4. Phantom NT
        5. Phantom iMacintosh
        6. - 10.  Five more Windows '95/'98 products TBD during the year.

Payment. Payment to Developer shall be a guaranteed US $2,400,000 (two
million four hundred thousand dollars) plus an additional US $400,000 (four
hundred thousand dollars) bonus for each of the products 6. to 10. that achieves
a "TOP PRODUCT" (as defined below) status according to the following schedule:

1.  February 7th, 1999                 $150,000
2.  March 7th, 1999                    $150,000
3.  April 7th, 1999                    $300,000
4.  May 7th, 1999                      $150,000
5.  June 7th, 1999                     $150,000
6.  July 7th, 1999                     $300,000
7.  August 7th, 1999                   $200,000
8.  September 7th, 1999                $200,000
9.  October 7th, 1999                  $200,000
10. November 7th, 1999                 $200,000
11. December 7th, 1999                 $200,000
12. January 7th, 2000                  $200,000

Sub-Total:                             $2,400,000

"http://www.com-path.ne.jp"  has a weekly  "System and  Utilities"  best sellers
list for software  products in Japan.  Each week that a product is in the Top 10
of this list  shall  earn two points and each week that it is #11 to #20 on this
list shall earn one point toward being a TOP PRODUCT.  A product shall be deemed
to be a TOP PRODUCT after it  accumulates  18 such points and the bonus shall be
paid  within 30 days  after the 18th point is  earned.  A product  can earn such
points only during the 28 weeks  following  its initial  appearance on the list.
Only products 6. through 10. are eligible for a TOP PRODUCT bonus, for a maximum
possible bonus of two million  dollars.  In the event that a product is released
that  is  categorized  outside  of the  "System  and  Utilities"  category,  the
appropriate category's best sellers list shall be used.

Upon receipt by Developer of all of the above payments according to the schedule
above,  an Unlimited  License for the Software will be granted.  Upon receipt of
payment 1. for $150,000,  all subsequent payments are an irrevocable  obligation
of Pointe Control and Source.  In the event of a delay of any payment by 3 days,
all  unpaid  amounts  become  due  immediately  with  interest  of 0.05% per day
compounded  daily to accrue  immediately.  Both  parties  agree that at the sole
discretion of the Developer, other remedies can be

<PAGE>

chosen  which  may  include  but  not  be  limited  to,  immediate  termination,
conversion  to  non-exclusive,  recalculation  of  amounts  due  based  on units
manufactured, etc.

In the event  that the 10 SKU's  cannot  be  delivered  by  January  1st,  2000,
Acceleration  Software will continue to work to complete them without additional
payments.  In the event that the 10 SKU's are delivered ahead of schedule, a new
agreement will be entered into to cover SKU's beyond the 10 from this agreement.
In such a  scenario,  there  would be  overlapping  payment  streams  from  this
agreement and the new agreement.

Incorporation into Distribution Agreement.  This Exhibit A is hereby made a part
of the  Distribution  Agreement  dated  November 9, 1996,  between  Acceleration
Software and Pointe Control,  Inc., including but not limited to Sections 15 and
16  providing  that  disputes  shall be settled by binding  arbitration  in, and
according  to the laws of,  the State of  Washington,  U.S.A.,  and the  parties
executing  below  hereby agree to be bound by the terms and  conditions  of such
Agreement.

"Developer"                             "Distributor"

Acceleration Software Int. Corp.,       Pointe Control, Inc.
a Washington corporation                a Washington corporation

by  /s/ Clint L. Ballard                by   /s/ Robert Miracle
  ------------------------------           -----------------------------------
  Clint L. Ballard, its C.E.O.             Robert Miracle, its Managing Director

<PAGE>

AMENDMENT TO EXHIBIT "A" EFFECTIVE  JANUARY 20, 1999 TO  DISTRIBUTION  AGREEMENT
DATED NOVEMBER 9, 1996

EFFECTIVE DATE.    October 14th, 1999 for this Exhibit A.

TERRITORY.   Japan

SOFTWARE OR TECHNOLOGY.   The Software shall consist of Developer's products
called:

 1. d-Time '98 (done)
 2. MP3 App for '98 (done)
 3. d-Time iMacintosh (done)
 4. MP3 App for iMacintosh (done)
 5. Compilation product comprising existing versions of: (done)
    d-Time '98, SuperFassst! '98, Webcelerator '98, Phantom '98
 6. TBD
 7. TBD
 8. TBD
 9. TBD
 10.TBD

PAYMENT. Payment to Developer shall be a guaranteed additional US
$1,050,000 (one million fifty thousand dollars) plus an additional US $400,000
(four hundred thousand dollars) bonus for each of the products 4. through 10.
that achieves a "TOP PRODUCT" (as defined below) status according to the
following schedule:

1. November 7th, 1999                       $  150,000
2. December 7th, 1999                       $  150,000
3. January 7th, 2000                        $  150,000
4. February 7th, 2000                       $  150,000
5. March 7th, 2000                          $  150,000
6. April 7th, 2000                          $  150,000
7. May 7th, 2000                            $  150,000
Sub-Total:                                  $1,050,000

"http://www.com-path.ne.jp"  has a weekly  "System and  Utilities"  best sellers
list for software  products in Japan.  Each week that a product is in the Top 10
of this list, or comparable list, shall earn two points and each week that it is
#11 to #20 on this list  shall  earn one point  toward  being a TOP  PRODUCT.  A
product  shall be  deemed to be a "TOP  PRODUCT"  after it  accumulates  18 such
points  and the  bonus  shall be paid  within 30 days  after  the 18th  point is
earned.  A product can earn such points only during the 28 weeks  following  its
initial  appearance  on the list.  Products  4. to 10.  are  eligible  for a TOP
PRODUCT  bonus,  with a maximum  possible bonus of two million  dollars.  In the
event that a product is released that is categorized  outside of the "System and
Utilities" category, the appropriate category's best sellers list shall be used.

Upon receipt by Developer of all of the above payments according to the schedule
above, an Unlimited License of the Software will be granted. All payments are an
irrevocable  obligation of Pointe Control and Source. In the event of a delay of
any payment by 3 days, all unpaid amounts become due  immediately  with interest
of 0.05% per day compounded daily to accrue immediately. Both parties agree that
at the sole discretion of the Developer, other remedies can be chosen, which may
include  but  not be  limited  to,  immediate  termination,  conversion  to non-
exclusive, recalculation of amounts due based on units manufactured, etc.

In the  event  that  the  10  SKU's  cannot  be  delivered  by  May  7th,  2000,
Acceleration  Software  will  continue to work to complete them without any more
payments than the above. In the event that the 10 SKU's are delivered ahead of

<PAGE>

schedule, a new agreement will be entered into to cover SKU's beyond the 10 from
this agreement.  In such a scenario,  there would be overlapping payment streams
from this agreement and the new agreement.

ALTERNATIVE SOURCE OF PAYMENT.  Both parties agree to let Huge Incorporated have
the option to make the monthly and bonus payments  instead of Pointe Control and
each such payment shall remove  Pointe  Control's  obligation  for that specific
payment.  In the event that Developer  receives all remaining payments from Huge
Incorporated,  all parties agree that Huge Incorporated shall be the one granted
the Unlimited License for all of the Software.

INCORPORATION INTO DISTRIBUTION AGREEMENT.  This Exhibit A is hereby made a part
of the  Distribution  Agreement  dated  November 9, 1996,  between  Acceleration
Software  and Pointe  Control,  including  but not limited to Sections 15 and 16
providing  that  disputes  shall be  settled  by  binding  arbitration  in,  and
according  to the laws of,  the State of  Washington,  U.S.A.,  and the  parties
executing  below  hereby agree to be bound by the terms and  conditions  of such
Agreement.

"Developer"                          "Distributor"

Acceleration Software Int. Corp.     Pointe Control
a Washington corporation             a Washington corporation

by  /s/ Clint Ballard                by  /s/ Robert Miracle
   --------------------------           ------------------------------------
   Clint Ballard, its C.E.O.           Robert Miracle, its Managing DirectorExhibit 10.20

                               eAcceleration Corp.
                 Acceleration Software International Corporation
                             1223 NW Finn Hill Road
                            Poulsbo, Washington 98370

                                                   May 1, 2000

Millennium Capital Quest
222 Munson Road
Wolcott, Connecticut 06716

          Re: Consulting Agreement Dated July 12, 1999 between Acceleration
          Software International Corporation and you (the "Consulting
          Agreement")

Gentlemen:

     This letter confirms the following:

     1.   The Consulting Agreement is hereby terminated in its entirety. In this
          connection,   you  agree  that  you  will  not   receive  any  further
          compensation  from the  undersigned  (the  "Company")  pursuant to the
          Consulting  Agreement,  and you acknowledge that you have not received
          any compensation from the Company relating to any particular  offering
          of securities.

     2.   You hereby  acknowledge  that no amounts have been or will be incurred
          or paid pursuant to paragraph 6 of the Consulting Agreement, including
          for any marketing or advertising.

     3.   You acknowledge that you have not provided to the Company any services
          relating to the following:

          (a)   coordinating communications between the Company and investment
                banks or equity investor groups;

          (b)   attracting investor venture capital or joint venture partners;

          (c)   structuring or promoting the Company's initial public offering
                or any other offering of securities by the Company;

          (d)   finding for the Company suitable broker-dealers and/or market
                makers to sell and/or trade any of the Company's stock, whether
                in the U.S. or in the

<PAGE>

                European markets; or

          (e)   finding or arranging investments by any investor in the
                Company's initial public offering.

     4.   Neither you, nor any of your affiliates, including, but not limited to
          DigitalIPO.com,   will  provide  any  of  the  services  described  in
          paragraph  3  hereof  to us in  connection  with  our  initial  public
          offering.

     5.   The  five-year  options to  purchase  34,300  shares of  eAcceleration
          Corp.'s  common  stock at an  exercise  price equal to $4.78 per share
          granted to you pursuant to section 5A(v) of the  Consulting  Agreement
          shall be  represented  by the option  certificate  attached  hereto as
          exhibit A.

     If the foregoing accurately sets forth our understanding, please sign where
indicated below.

                                       Very truly yours,

                                       EACCELERATION CORP.

                                       ACCELERATION SOFTWARE
                                       INTERNATIONAL CORPORATION

                                       By: /s/ Clint Ballard
                                          ------------------------------
                                          Clint Ballard
                                          President

Accepted and agreed as of the date first above written:

MILLENNIUM CAPITAL QUEST

By:   /s/ Gregg Nolan
   ------------------------------
   Name:  Gregg Nolan
   Title: C.F.O.

<PAGE>

Exhibit A

THE OPTIONS  EVIDENCED  HEREBY AND THE SHARES OF COMMON STOCK ISSUABLE  PURSUANT
HERETO HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED.
THE OPTIONS AND ANY SHARES OF COMMON STOCK ISSUABLE  PURSUANT  THERETO HAVE BEEN
AND WILL BE ACQUIRED FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO DISTRIBUTION
OR RESALE,  AND MAY NOT BE SOLD,  ASSIGNED,  PLEDGED,  HYPOTHECATED OR OTHERWISE
TRANSFERRED WITHOUT AN EFFECTIVE  REGISTRATION  STATEMENT FOR THE OPTIONS AND/OR
SUCH SHARES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  AND APPLICABLE  STATE
SECURITIES  LAWS OR AN  OPINION  OF  COUNSEL  SATISFACTORY  TO THE ISSUER OF THE
OPTIONS AND SUCH SHARES TO THE EFFECT THAT  REGISTRATION  IS NOT REQUIRED  UNDER
SUCH ACT AND SUCH STATE SECURITIES LAWS.

           Void after 5:00 p.m. New York City time, on April 30, 2010.
                Option to Purchase 34,300 Shares of Common Stock.

                         OPTION TO PURCHASE COMMON STOCK
                                       of
                               eAcceleration Corp.

        This is to certify that, FOR VALUE RECEIVED, MILLENIUM CAPITAL QUEST, or
permitted assigns ("Holder"), is entitled to purchase, subject to the provisions
of this option  certificate,  from eAcceleration  Corp., a Delaware  corporation
(the "Company"),  34,300 fully paid, validly issued and nonassessable  shares of
the common stock,  $.0001 par value (the "Common  Stock"),  of the Company at an
exercise  price of $4.78 per share (the "Exercise  Price"),  at any time or from
time to time during the period  commencing on the date hereof and terminating on
April 30, 2010 (the "Termination  Date"),  but not later than 5:00 p.m. New York
City Time, on the  Termination  Date  (subject to the  provisions of this option
certificate).  The  number of shares of  Common  Stock to be  received  upon the
exercise of this option  certificate  and the price to be paid for each share of
Common Stock may be adjusted  from time to time as  hereinafter  set forth.  The
rights granted by this option certificate to purchase shares of Common Stock are
hereinafter  sometimes  referred to as the "Options;" the shares of Common Stock
deliverable  upon exercise of the Options,  as adjusted  from time to time,  are
hereinafter  sometimes referred to as "Option Shares;" and the exercise price of
a share of Common Stock in effect at any time, as adjusted from time to time, is
hereinafter sometimes referred to as the "Exercise Price." The Options have been
granted outside of the Company's 1999 Stock

                                        1
<PAGE>

Incentive Compensation Plan (the "1999 Plan");  provided,  however, that, except
as  specifically  provided in this  option  certificate,  the  Options  shall be
governed and interpreted in accordance with the provisions of the 1999 Plan.

1.      Duration.

             Subject to the earlier  termination as provided herein or under the
1999 Plan,  the Option  shall  expire at the close of business on April 30, 2010
(the "Termination Date").

2.      Written Notice of Exercise.

             The Options may be exercised only by delivering to the President or
Secretary of the Company,  at the Company's  principal  executive offices,  of a
written  notice of exercise  substantially  in the form described in paragraph 8
hereof.

3.      Anti-Dilution Provisions.

        (a) If there is any stock  dividend,  stock  split,  or  combination  of
shares of Common  Stock,  the number and amount of Option Shares then subject to
the Options shall be proportionately and appropriately adjusted as determined by
the Committee,  whose determination shall be final,  conclusive and binding upon
Holder and the Company.

        (b) If there is any  other  change  in the  Common  Stock,  including  a
recapitalization,  reorganization,  sale or  exchange  of  assets,  exchange  of
shares,  offering of subscription  rights, or a merger or consolidation in which
the Company is the surviving corporation,  an adjustment,  if any, shall be made
in the Option  Shares then  subject to the Options as the Board of  Directors or
Committee may deem equitable, and whose determination shall be final, conclusive
and binding  upon Holder and the  Company.  Failure of the Board of Directors or
the Committee to provide for an adjustment  pursuant to this subparagraph  prior
to the effective date of any Company  action  referred to in this Paragraph 3(b)
shall be conclusive  evidence that no adjustment is required in  consequence  of
such action.

        (c) If the  Company  is  merged  into or  consolidated  with  any  other
corporation and the Company is not the surviving corporation, or if it sells all
or substantially all of its assets to any other corporation, then either (i) the
Company  shall cause  provisions to be made for the  continuance  of the Options
after such event, or for the  substitution for the Options of an option covering
the number and class of  securities  which  Holder  would have been  entitled to
receive  in such  merger or  consolidation  by virtue of such sale if Holder had
been the  holder of record  of a number of shares of Common  Stock  equal to the
number of Option Shares covered by the  unexercised  portion of the Options,  or
(ii) the Company  shall give to Holder  written  notice of its  election  not to
cause such provision to be made and the Options shall become exercisable in full
(or,  at the  election  of Holder in part) at any time during a period of twenty
days, to be  designated  by the Company,  ending not more than ten days prior to
the effective date of the merger,

                                        2

<PAGE>

consolidation or sale, in which case the Options shall not be exercisable to any
extent after the expiration of such  twenty-day  period.  In no event,  however,
shall the Options be exercisable after the Termination Date.

4.      Investment Representation and Legend of Certificates.

            Holder  acknowledges  and  agrees  that,  for any  period in which a
registration  statement,  with respect to the Options and/or Option Shares under
the Securities Act of 1933, as amended (the "Securities Act"), is not effective,
Holder shall hold the Options and will purchase and/or own the Option Shares for
investment and not for resale or distribution.  The Company shall have the right
to  place  upon  the  face  and/or  reverse  side of any  stock  certificate  or
certificates  evidencing  the Option  Shares  such legend as the  Committee  may
prescribe  for the purpose of  preventing  disposition  of such Option Shares in
violation of the Securities Act.

5.      Non-Transferability.

            The Options shall not be  transferable  by Holder other than by will
or by the laws of  descent  or  distribution,  and are  exercisable  during  the
lifetime of Holder only by Holder. The terms of this option certificate shall be
binding upon the  executors,  administrators,  heirs,  successors and assigns of
Holder.

6.      Certain Rights Not Conferred by Option.

            Holder shall not, by virtue of holding  Options,  be entitled to any
rights of a stockholder in the Company.

7.      Expenses.

            The Company  shall pay all original  issue and  transfer  taxes with
respect to the issuance of Option Shares  pursuant hereto and all other fees and
expenses necessarily incurred by the Company in connection therewith.

8.      Exercise of Options.

            (a) The Options shall become exercisable  cumulatively to the extent
of the total number of Option Shares on each of the following dates:

Date    Number of Option Shares
----    -----------------------

Immediately. . . . . . . . . . . . . . . . . . . . . . . . . . . .         6,860
May 1, 2001. . . . . . . . . . . . . . . . . . . . . . . . . . . .         6,860
May 1, 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . .         6,860
May 1, 2003. . . . . . . . . . . . . . . . . . . . . . . . . . . .         6,860

                                        4
<PAGE>

May 1, 2004. . . . . . . . . . . . . . . . . . . . . . . . . . . .         6,860

            (b) The Options shall be exercisable, in whole or part and from time
to time,  by written  notice of such  exercise,  delivered  to the  President or
Secretary  of the  Company,  at  the  Company's  principal  office  by  personal
delivery,  against  written  receipt  therefor,  or by  pre-paid,  certified  or
registered mail, return receipt requested.  Such notice shall specify the number
of Option Shares for which Options are being  exercised  (which number,  if less
than all of the  Option  Shares  then  subject  to  exercise,  shall be 50 or an
integral  multiple  thereof)  and shall be  accompanied  by  payment of the full
exercise price for the Option Shares for which Options are being exercised.

            (c) The form of payment  of the  Exercise  Price for  Option  Shares
purchased  pursuant to Options shall consist of (i) cash; (ii) check (subject to
collection); (iii) in the discretion of the Board of Directors of the Company or
the Committee  administering  the 1999 Plan, by (A) delivery to the Company of a
promissory  note,  (B)  surrender to the Company of other shares of Common Stock
owned by Holder which are then registered  under the Securities Act or otherwise
publicly  saleable  under  Rule  144 or other  applicable  exemption  under  the
Securities  Act and have a fair market value on the date of  surrender  equal to
the aggregate  Exercise  Price of the Option Shares as to which Options shall be
exercised,  (C)  assignment  to the Company of the net  proceeds  (to the extent
necessary to pay such Exercise  Price) to be received  from a registered  broker
upon the sale of the Option  Shares or  assignment  of the net  proceeds (to the
extent  necessary to pay such Exercise Price) of a loan from such broker in such
amount or (D) such other consideration and method of payment for the issuance of
stock to the extent permitted under Delaware law and satisfying the requirements
of Rule 16b-3  promulgated  pursuant to the Securities  Exchange Act of 1934, as
amended; or (iv) any combination of such methods of payment.

            (d) Any promissory  note (the "Note")  delivered  pursuant to clause
(iii)(A)  of  paragraph  8(c)  shall be in the form  prescribed  by the Board of
Directors of the Company or the Committee  administering the 1999 Plan and shall
be in the  principal  sum of such total  Exercise  Price,  bear  interest at the
applicable  federal  rate (as such term is  defined in the Code) in effect as of
the date of the Note and be duly executed by Holder.

            (e) No Shares shall be delivered  upon exercise of Options until all
laws,  rules and regulations  which the Board of Directors of the Company or the
Committee  administering  the 1999 Plan may deem  applicable  have been complied
with. If a registration statement under the Securities Act is not then in effect
with respect to the shares issuable upon such exercise,  the Company may require
as a condition  precedent that Holder,  upon exercising the Options,  deliver to
the Company a written  representation and undertaking,  satisfactory in form and
substance to the Committee,  that,  among other things,  Holder is acquiring the
shares  for  Holder's  own  account  for  investment  and not with a view to the
distribution thereof.

            (f) Holder shall not be  considered a record holder of the Option
Shares so purchased

                                        4

<PAGE>

for any  purpose  until the date on which  Holder is  actually  recorded  as the
holder of such Option Shares in the records of the Company.

           (g) In the event of Holder's  death,  disability  or  termination  of
employment, the exercisability of Options shall be governed by the provisions of
the 1999  Plan,  unless  such  provisions  are waived by the  Committee,  in the
Committee's sole discretion.

Dated: As of May 1, 2000                        EACCELERATION CORP.

                                        By:    /s/ Clint Ballard
                                            ---------------------------------
                                            Name:    Clint Ballard
                                            Title:   President

             Holder acknowledges  receipt of a copy of the 1999 Plan and certain
information  related  thereto and  represents  that Holder is familiar  with the
terms and  provisions  thereof,  and hereby accepts the Option subject to all of
the terms and  provisions  thereof.  Holder has  reviewed the 1999 Plan and this
option agreement in their entirety,  has had an opportunity to obtain the advice
of counsel prior to executing this option agreement and fully understands all of
the terms and provisions of the Options and this option agreement. Holder hereby
agrees  to  accept  as  binding,   conclusive   and  final  all   decisions   or
interpretations  of the Committee upon any questions rising under the 1999 Plan.
Holder  further  agrees to notify the Company  upon any change in the  residence
address indicated below.

Accepted and agreed as of the date first set forth above:

MILLENNIUM CAPITAL QUEST

By: /s/ Gregg R. Nolan
   -----------------------------
   Name:  Gregg R. Nolan
   Title: C.F.O.

Address: 222 Munson Road
         Wilcott, CT  06716

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