Document:

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                                                                   EXHIBIT 10.16

                               ZAPME! CORPORATION

                              EMPLOYMENT AGREEMENT

      This Agreement is entered into and effective as of October 8, 2000 (the
"Effective Date") by and between ZapMe! Corporation (the "Company"), and Lance
Mortensen ("Executive").

      1.    DUTIES AND SCOPE OF EMPLOYMENT.

            (a)   POSITIONS AND DUTIES. Executive will serve as Chief Executive
Officer and President of the Company. Executive will render such business and
professional services in the performance of his duties, consistent with
Executive's position within the Company, as shall reasonably be assigned to him
by the Company's Board of Directors (the "Board").

            (b)   OBLIGATIONS. During the term of this Agreement, Executive will
perform his duties faithfully and to the best of his ability and will devote his
full business efforts and time to the Company. For the duration of this
Agreement, Executive agrees not to actively engage in any other employment,
occupation or consulting activity for any direct or indirect remuneration
without the prior approval of the Board.

      2.    COMPENSATION.

            (a)   ANNUAL BASE SALARY. During the term of this Agreement, the
Company will pay Executive as compensation for his services a base salary at the
annualized rate of $275,000 (the "Base Salary"). The Base Salary shall be paid
in accordance with the Company's normal payroll practices and shall be subject
to annual review by the Board for any appropriate adjustment.

            (b)   ANNUAL BONUS. During the term of this Agreement, Executive
shall be eligible to earn an annual bonus of up to (100%) of Executive's Base
Salary upon the meeting of specific performance objectives established for the
Company on an annual or semi-annual basis. Such bonus shall be payable in
accordance with the Company's normal payroll practice.

            (c)   STOCK OPTIONS: Executive may be eligible to receive stock
options in the Company, as determined by the Board. The terms and conditions
governing eligibility for, entitlement to, and receipt of any options or other
form of equity in the Company shall be governed by a ZapMe! Corporation 1998
Stock Plan Stock Option Agreement, to be executed by the parties hereto (each a
"Stock Option Agreement").

      3.    EMPLOYEE BENEFITS. During the term of this Agreement, Executive will
be entitled to participate in such employee benefit plans currently and
hereafter maintained by the Company of general applicability to other senior
executives of the Company. The Company reserves the right to cancel or change
the benefit plans and programs it offers to its employees at any time.

      4.    VACATION. Executive will be entitled to a paid vacation of four
weeks per year in accordance with the Company's vacation policy, with the timing
and duration of specific vacations mutually and reasonably agreed to by the
parties hereto.

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      5.    EXPENSES. The Company will reimburse Executive for reasonable
travel, entertainment or other expenses incurred by Executive in the furtherance
of or in connection with the performance of Executive's duties hereunder, in
accordance with the Company's travel and expense reimbursement policies as in
effect from time to time.

      6.    EMPLOYMENT TERM; TERMINATION.

            (a)   The Employment Term shall commence on the Effective Date of
this Agreement and shall continue until terminated upon the earlier to occur of
the following events: (i) the close of business on the third (3rd) anniversary
of this Agreement or (ii) the death or disability (as defined herein) of the
Executive, provided, however, that, on the third (3rd) anniversary of the date
of this Agreement, and on every subsequent annual anniversary, and unless either
party has given the other party written notice at least thirty (30) days prior
to the such anniversary date, the term of this Agreement and the Employment Term
shall be renewed for a term ending one (1) year subsequent to such date, unless
sooner terminated as provided herein.

            (b)   Notwithstanding the provisions of paragraph 6(a) above, the
Executive may terminate the employment relationship at any time for any reason
by giving the Company written notice at least sixty (60) days prior to the
effective date of termination. Unless otherwise provided by Section 6(d), all
compensation and benefits paid by the Company to the Executive shall cease upon
his last day of employment.

            (c)   If the Executive's employment is terminated for Cause, the
Executive will not be entitled to and shall not receive any compensation or
benefits of any type following the effective date of termination.

            (d)   In the event Executive is terminated by the Company without
Cause, or if Executive voluntarily terminates employment for Good Reason within
twelve (12) months following a Change of Control, then:

                  (i)   LAPSE OF REPURCHASE OPTION. The Company's repurchase
option with respect to the ZapMe! Corporation Restricted Stock Purchase
Agreement, dated September 13, 1999 (the "Restricted Stock Agreement"), or any
new restricted shares that may have been granted shall lapse in full.

                  (ii)  SEVERANCE PAYMENT. Executive shall be entitled to a cash
payment in an amount equal to two hundred percent (200%) of the Executive's Base
Salary and two hundred percent (200%) of the annual bonus, payable in accordance
with the Company's normal payroll practices.

                  (iii) OPTION VESTING. Executive's options under any of the
Company's stock or equity plans shall become one hundred percent (100%) vested
and exercisable.

                  (iv)  BENEFITS. Executive shall be entitled to continue his
health insurance benefits at the same level of coverage as was provided to
Executive immediately prior to the termination without Cause or the termination
for Good Reason ("Health Care Coverage") by electing Federal COBRA continuation
coverage, or similar coverage required under state law (collectively "COBRA").
Should the Executive elect COBRA, the Company shall pay one hundred percent

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(100%) of Executive's Health Care Coverage premiums under COBRA for eighteen
(18) months (for purposes of this subsection, "Premiums"). If such Health Care
Coverage included the Executive's dependents immediately prior to the
termination without Cause or the termination for Good Reason, the Company shall
pay one hundred percent (100%) of such dependent's Premiums. If the Executive is
eligible for further COBRA coverage (in excess of eighteen (18) months),
Executive shall maintain such further coverage at his sole expense after the
initial eighteen (18) month period has expired. The Company shall cease to pay
the Premiums for the Executive and Executive's dependents if Executive and his
dependents become covered under another employer's group health plan which
provides Executive and his dependents with comparable benefits and levels of
coverage and which does not contain any exclusion or limitation with respect to
any pre-existing condition of the Executive or his dependents.

                  (v)   TAX GROSS UP. In the event any payment to Executive
pursuant to this Agreement constitutes an "excess parachute payment" under
section 280(G) of the Internal Revenue Code of 1986, as amended (the "Code"),
the Company shall reimburse Executive for any excise tax payable under the Code
as a result of any payment pursuant to this Agreement.

            (e)   This Agreement will terminate immediately upon the Executive's
death and the Company shall not have any further liability or obligation to the
Employee, his executors, heirs, assigns or any other person claiming under or
through his estate, except that Executive's estate shall receive any accrued but
unpaid salary or bonuses.

      7.    DEFINITIONS.

            (a)   CAUSE. For purposes of this Agreement, "Cause" is defined as
(i) an act of dishonesty made by Executive in connection with Executive's
responsibilities as an employee, (ii) Executive's conviction of, or plea of nolo
contendere to, a felony, or a crime involving moral turpitude (iii) Executive's
gross misconduct, or (iv) Executive's continued substantial violations of his
employment duties after Executive has received a written demand for performance
from the Board which specifically sets forth the factual basis for the Board's
belief that Executive has not substantially performed his duties and following a
reasonable opportunity for Executive to cure any violation.

            (b)   CHANGE OF CONTROL. For purposes of this Agreement, "Change of
Control" of the Company is defined as: (i) any "person" (as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended)
becomes, after the Effective Date, the "beneficial owner" (as defined in Rule
13d-3 under said Act), directly or indirectly, of securities of the Company
representing 50% or more of the total voting power represented by the Company's
then outstanding voting securities; or (ii) the date of the consummation of a
merger or consolidation of the Company with any other corporation that has been
approved by the stockholders or the Board of the Company; or (iii) the date on
which the stockholders or the Board of the Company approve a plan of complete
liquidation of the Company; or (iv) the date of the consummation of the sale or
disposition by the Company of all or substantially all the Company's assets.

            (c)   GOOD REASON. For purposes of this Agreement, "Good Reason"
shall mean the Executive voluntarily resigns within ninety (90) days after the
occurrence of any of the following (i) without the Executive's express written
consent, a material reduction of the duties, title, authority

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or responsibilities, relative to the Executive's duties, title, authority or
responsibilities as in effect immediately prior to such reduction, or the
assignment to Executive of such reduced duties, title, authority or
responsibilities; (ii) without the Executive's express written consent, a
material reduction, without good business reasons, of the facilities and
perquisites (including office space and location) available to the Executive
immediately prior to such reduction; (iii) a reduction by the Company in the
Base Salary of the Executive as in effect immediately prior to such
reduction; (iv) a material reduction by the Company in the kind or level of
employee benefits, including bonuses, to which the Executive was entitled
immediately prior to such reduction with the result that the Executive's
overall benefits package is materially reduced; (iv) the relocation of the
Executive to a facility or a location more than sixty (60) miles from his
residence at the time of the relocation, without the Executive's express
written consent, (vi) or, the failure of the Company to obtain the assumption
of this agreement by any successors contemplated in Section 10.

            (d)   DISABILITY. For purposes of this Agreement, "disabled" shall
mean if Executive is considered totally disabled under any group disability plan
maintained by the Company and in effect at that time, or in the absence of any
such plan, under applicable Social Security regulations. In the event of any
dispute with regard to whether Executive is disabled, Executive shall submit to
a physical examination by a licensed physician mutually satisfactory to the
Company and Executive, the cost of such examination to be paid by the Company,
and the determination of such physician shall be determinative.

            (e)   ANNUAL BONUS. For the purposes of Section 6(d)(ii), "annual
bonus" means the greater of either (i) the annual bonus due and payable the year
of termination; or (ii) the annual bonus paid the year prior to termination.

      8.    COMPANY PROPERTY AND CONFIDENTIAL INFORMATION. All correspondence,
records, documents, software, promotional materials, and other Company property,
including all copies, which come into the Executive's possession by, through or
in the course of his employment, regardless of the source and whether created by
the Executive, are the sole and exclusive property of the Company, and
immediately upon the termination of the Executive's employment, the Executive
shall return to the Company all such property of the Company. Executive further
agrees that as a condition of entering into this Agreement, Executive agrees to
enter into the Company's standard Confidential Information and Invention
Assignment Agreement (the "Confidential Information Agreement"), the terms of
which are incorporated herein.

      9.    ASSIGNMENT. This Agreement will be binding upon and inure to the
benefit of (a) the heirs, executors and legal representatives of Executive upon
Executive's death and (b) any successor of the Company. Any such successor of
the Company will be deemed substituted for the Company under the terms of this
Agreement for all purposes. For this purpose, "successor" means any person,
firm, corporation or other business entity which at any time, whether by
purchase, merger or otherwise, directly or indirectly acquires all or
substantially all of the assets or business of the Company. None of the rights
of Executive to receive any form of compensation payable pursuant to this
Agreement may be assigned or transferred except by will or the laws of descent
and distribution. Any other attempted assignment, transfer, conveyance or other
disposition of Executive's right to compensation or other benefits will be null
and void.

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      10.   NOTICES. All notices, requests, demands and other communications
called for hereunder shall be in writing and shall be deemed given (i) on the
date of delivery if delivered personally, (ii) one (1) day after being sent by a
well established commercial overnight service, or (iii) four (4) days after
being mailed by registered or certified mail, return receipt requested, prepaid
and addressed to the parties or their successors at the following addresses, or
at such other addresses as the parties may later designate in writing:

            IF TO THE COMPANY:

            ZapMe! Corporation
            3000 Executive Parkway, Suite 150
            San Ramon, CA  94583

            ATTN: Legal Department

            IF TO EXECUTIVE:

            at the last residential address known by the Company.

      11.   SEVERABILITY. In the event that any provision hereof becomes
or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement will continue in full force and effect without said
provision.

      12.   INDEMNIFICATION. The Company shall indemnify and hold harmless
the Executive for any liability incurred by reason of any act or omission
performed by the Executive while acting in good faith on behalf of the Company
and within the scope of the authority of the Executive pursuant to this
Agreement and under the rules and policies of the Company, except that the
Executive must have in good faith believed that such action was in the best
interest of the Company and such course of action or inaction must not have
constituted gross negligence, fraud, willful misconduct, or breach of a
fiduciary duty.

      13.   ARBITRATION. The Parties agree that any dispute or controversy
arising out of, relating to, or in connection with this Agreement, or the
interpretation, validity, construction, performance, breach, or termination
thereof, or arising out of or relating to the employment of the Executive, or
the termination thereof, including any statutory or common law claims under
federal, state or local law, including all laws prohibiting discrimination in
the workplace, shall be settled by binding arbitration to be held in Contra
Costa County, California in accordance with the National Rules for the
Resolution of Employment Disputes then in effect of the American Arbitration
Association (the "Rules"). The arbitrator may grant injunctions or other relief
in such dispute or controversy. The decision of the arbitrator will be final,
conclusive and binding on the parties to the arbitration. Judgment may be
entered on the arbitrator's decision in any court having jurisdiction.

      The arbitrator(s) will apply California law to the merits of any dispute
or claim, without reference to rules of conflicts of law. The arbitration
proceedings will be governed by federal arbitration law and by the Rules,
without reference to state arbitration law. Executive hereby consents to the
personal jurisdiction of the state and federal courts located in California for
any

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action or proceeding arising from or relating to this Agreement or relating to
any arbitration in which the parties are participants.

      EXECUTIVE HAS READ AND UNDERSTANDS THIS SECTION, WHICH DISCUSSES
ARBITRATION. EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EXECUTIVE AND
THE COMPANY AGREE TO SUBMIT ANY CLAIMS ARISING OUT OF, RELATING TO, OR IN
CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION,
PERFORMANCE, BREACH OR TERMINATION THEREOF AND ANY OTHER DISPUTES REGARDING
EXEUCTIVE'S EMPLOYMENT TO BINDING ARBITRATION, AND THAT THIS ARBITRATION CLAUSE
CONSTITUTES A WAIVER OF THE PARTIES' RIGHT TO A JURY TRIAL AND RELATES TO THE
RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYMENT
RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, DISCRIMINATION CLAIMS.

      14.   INTEGRATION. This Agreement, the Restricted Stock Agreement,
any Stock Option Agreement(s), and the Confidential Information Agreement
represent the entire agreement and understanding between the parties as to the
subject matter herein and supersedes all prior or contemporaneous agreements
whether written or oral. No waiver, alteration, or modification of any of the
provisions of this Agreement will be binding unless in writing and signed by
duly authorized representatives of the parties hereto.

      15.   TAX WITHHOLDING. All payments made pursuant to this Agreement
will be subject to withholding of applicable taxes.

      16.   GOVERNING LAW. This Agreement will be governed by the laws of
the State of California (with the exception of its conflict of law provisions).

      17.   ACKNOWLEDGMENT. Executive acknowledges that he has had the
opportunity to discuss this matter with and obtain advice from his private
attorney, has had sufficient time to, and has carefully read and fully
understands all the provisions of this Agreement, and is knowingly and
voluntarily entering into this Agreement.

      18.   MISCELLANEOUS.

            (a)   No delay or omission by the Company in exercising any
right under this Agreement shall operate as a waiver of that or any other right.
A waiver or consent given by the Company on any one occasion shall be effective
only in that instance and shall not be construed as a bar or waiver of any right
on any other occasion.

            (b)   The captions of the sections of this Agreement are for
convenience of reference only and in no way define, limit or affect the scope or
substance of any section of this Agreement.

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      IN WITNESS WHEREOF, each of the parties has executed this Agreement, in
the case of the Company by their duly authorized officers, as of the day and
year first above written.

COMPANY:

By: /s/ Robert Edwards
------------------------------------------------------
Name: Robert Edwards

Title: SVP, Administration and Chief Financial Officer

EXECUTIVE:

/s/ Lance Mortensen
------------------------------------------------------
Lance Mortensen

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                                                                   EXHIBIT 10.17

                  FINAL TERMS OF EMPLOYMENT AND MUTUAL RELEASE
                                  AMENDMENT #1

         This Amended Settlement Agreement and Mutual Release ("Agreement") is
made by and between ZapMe! Corporation (the "Company") and Bruce D. Bower
("Individual") and supercedes and replaces in its entirety the prior agreement
dated October 10, 2000.

         WHEREAS, Individual is employed by the Company;

         WHEREAS, the Company and Individual have entered into an Employment,
Confidential Information, Invention Assignment and Arbitration Agreement (the
"Confidentiality Agreement");

         WHEREAS, the Company and Individual have agreed to terminate the
employment relationship and to release each other from any claims arising from
or related to the employment relationship;

         NOW THEREFORE, in consideration of the mutual promises made herein, the
Company and Individual (collectively referred to as "the Parties") hereby agree
as follows:

         1. TERMINATION. Individual's employment with the Company will terminate
effective October 10, 2000.

         2. CONSIDERATION.

            (a) The Company agrees to pay Individual beginning October 12, 2000
for a period of nine months ("Consulting Period"), at the rate of $8,333.33 on
the 5th and 20th day of each month, during the term of this Agreement for the
services rendered as specified in Exhibit A to the Consulting Agreement between
the parties dated October 20, 2000. Individual will receive payment in
accordance with Section 8 below.

            (b) The Company agrees that Individual will continue to vest in
shares of the Company's Common Stock according to Individual's Stock Option
Agreements through the Consulting Period. Individual agrees that he shall have
no right to vest in any other shares under this or any other agreement with the
Company.

            (c) The Company agrees to maintain Individual's health and related
benefits through COBRA until the earlier of (i) the expiration of the Consulting
Period, or (ii) the date on which Individual obtains comparable coverage through
another employer.

            (d) Individual shall have the right to use the laptop computer he
currently uses for work during the Consulting Period. At the conclusion of the
Consulting Period, the Company shall grant Individual ownership of that laptop
at no charge.

         3. CONFIDENTIAL INFORMATION. Individual shall continue to maintain the
confidentiality of all confidential and proprietary information of the Company
and shall continue to comply with the terms and conditions of the
Confidentiality Agreement between Individual and the Company.

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Individual shall return all the Company property and confidential and
proprietary information in his possession to the Company on the Effective Date
of this Agreement.

         4. RELEASE OF CLAIMS. Individual agrees that the foregoing
consideration represents settlement in full of all outstanding obligations owed
to Individual by the Company, except for work-related expenses reasonably
incurred by Individual and not yet reimbursed by the Company. Individual and the
Company, on behalf of themselves, and their respective heirs, family members,
executors, officers, directors, employees, investors, shareholders,
administrators, affiliates, divisions, subsidiaries, predecessor and successor
corporations, and assigns, hereby fully and forever releases each other their
respective heirs, family members, executors, officers, directors, employees,
investors, shareholders, administrators, affiliates, divisions, subsidiaries,
predecessor and successor corporations, and assigns, from, and agree not to sue
concerning, any claim, duty, obligation or cause of action relating to any
matters of any kind, whether presently known or unknown, suspected or
unsuspected, that any of them may possess arising from any omissions, acts or
facts that have occurred up until and including the Effective Date of this
Agreement including, without limitation,

            (a) any and all claims relating to or arising from Individual's
employment relationship with the Company and the termination of that
relationship;

            (b) any and all claims relating to, or arising from, Individual's
right to purchase, or actual purchase of shares of stock of the Company,
including, without limitation, any claims for fraud, misrepresentation, breach
of fiduciary duty, breach of duty under applicable state corporate law, and
securities fraud under any state or federal law;

            (c) any and all claims for wrongful discharge of employment;
termination in violation of public policy; discrimination; breach of contract,
both express and implied; breach of a covenant of good faith and fair dealing,
both express and implied; promissory estoppel; negligent or intentional
infliction of emotional distress; negligent or intentional misrepresentation;
negligent or intentional interference with contract or prospective economic
advantage; unfair business practices; defamation; libel; slander; negligence;
personal injury; assault; battery; invasion of privacy; false imprisonment; and
conversion;

            (d) any and all claims for violation of any federal, state or
municipal statute, including, but not limited to, Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment
Act of 1967, the Americans with Disabilities Act of 1990, the Fair Labor
Standards Act, the Employee Retirement Income Security Act of 1974, The Worker
Adjustment and Retraining Notification Act, Older Workers Benefit Protection
Act; the California Fair Employment and Housing Act, and Labor Code section 201,
ET SEQ. and section 970, ET SEQ.;

            (e) any and all claims for violation of the federal, or any state,
constitution;

            (f) any and all claims arising out of any other laws and regulations
relating to employment or employment discrimination; and

            (g) any and all claims for attorneys' fees and costs.

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The Company and Individual agree that the release set forth in this section
shall be and remain in effect in all respects as a complete general release as
to the matters released. This release does not extend to any obligations
incurred under this Agreement.

         5. ACKNOWLEDGMENT OF WAIVER OF CLAIMS UNDER ADEA. Individual
acknowledges that he is waiving and releasing any rights he may have under the
Age Discrimination in Employment Act of 1967 ("ADEA") and that this waiver and
release is knowing and voluntary. Individual and the Company agree that this
waiver and release does not apply to any rights or claims that may arise under
ADEA after the Effective Date of this Agreement. Individual acknowledges that
the consideration given for this waiver and release Agreement is in addition to
anything of value to which Individual was already entitled. Individual further
acknowledges that he has been advised by this writing that (a) he should consult
with an attorney PRIOR to executing this Agreement; (b) he has at least
twenty-one (21) days within which to consider this Agreement; (c) he has at
least seven (7) days following the execution of this Agreement by the parties to
revoke this Section 5 of the Agreement; and (d) this Section 5 of the Agreement
shall not be effective until the revocation period has expired.

         6. CIVIL CODE SECTION 1542. The parties represent that they are not
aware of any claim by either of them against the other other than the claims
that are released by this Agreement. Individual and the Company acknowledge that
they have been advised by legal counsel and are familiar with the provisions of
California Civil Code Section 1542, which provides as follows:

            A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
            DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
            EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
            MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

         Individual and the Company, being aware of said code section, agree to
expressly waive any rights they may have thereunder, as well as under any other
statute or common law principles of similar effect.

         7. NO PENDING OR FUTURE LAWSUITS. Individual represents that he has no
lawsuits, claims, or actions pending in his name, or on behalf of any other
person or entity, against the Company or any other person or entity referred to
herein. Individual also represents that he does not intend to bring any claims
on his own behalf or on behalf of any other person or entity against the Company
or any other person or entity referred to herein.

         8. TAX CONSEQUENCES. The Company makes no representations or warranties
with respect to the tax consequences of the payment of any sums under the terms
of this Agreement. Individual agrees and understands that he is responsible for
payment, if any, of local, state and/or federal taxes on the sums paid hereunder
by the Company and any penalties or assessments thereon, including any penalties
or assessments resulting from the allocation of the sums paid hereunder.
Individual further agrees to indemnify and hold the Company harmless from any
claims, demands, deficiencies, penalties, assessments, executions, judgments, or
recoveries by any government agency against the Company for any amounts claimed
due on account of Individual's failure to pay, or

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delayed payment of, federal or state taxes or damages sustained by the Company
by reason of any such claims, including reasonable attorneys' fees.

         9. NO COOPERATION. Individual agrees that he will not counsel or assist
any attorneys or their clients in the presentation or prosecution of any
disputes, differences, grievances, claims, charges, or complaints by any third
party against the Company and/or any officer, director, employee, agent,
representative, shareholder or attorney of the Company, unless under a subpoena
or other court order to do so.

         10. NON-DISPARAGEMENT AND NON-DISRUPTION. Each party agrees to refrain
from any disparagement, defamation, libel, slander, disruption or any other
actions adverse to the interests of the other and its respective officers,
directors, employees, investors, shareholders, administrators, affiliates,
divisions, subsidiaries, predecessor and successor corporations, and assigns or
tortious interference with the contracts and relationships of the other and its
respective officers, directors, employees, investors, shareholders,
administrators, affiliates, divisions, subsidiaries, predecessor and successor
corporations, and assigns.

         11. NO ADMISSION OF LIABILITY. The Parties understand and acknowledge
that this Agreement constitutes a compromise and settlement of disputed claims.
No action taken by the Parties hereto, or either of them, either previously or
in connection with this Agreement shall be deemed or construed to be (a) an
admission of the truth or falsity of any claims heretofore made or (b) an
acknowledgment or admission by either party of any fault or liability whatsoever
to the other party or to any third party.

         12. COSTS. The Parties shall each bear their own costs, expert fees,
attorneys' fees and other fees incurred in connection with this Agreement.

         13. ARBITRATION. The Parties agree that any and all disputes arising
out of the terms of this Agreement, their interpretation, and any of the matters
herein released, including any potential claims of harassment, discrimination or
wrongful termination shall be subject to binding arbitration held in Santa Clara
County, California, under the Arbitration Rules set forth in California Code of
Civil Procedure Section 1280, ET SEQ., including section 1283.05, (the "Rules")
and pursuant to California law. The Parties agree that the prevailing party in
any arbitration shall be entitled to injunctive relief in any court of competent
jurisdiction to enforce the arbitration award.

         14. AUTHORITY. The Company represents and warrants that the undersigned
has the authority to act on behalf of the Company and to bind the Company and
all who may claim through it to the terms and conditions of this Agreement.
Individual represents and warrants that he has the capacity to act on his own
behalf and on behalf of all who might claim through him to bind them to the
terms and conditions of this Agreement. Individual warrants and represents that
there are no liens or claims of lien or assignments in law or equity or
otherwise of or against any of the claims or causes of action released herein.

         15. NO REPRESENTATIONS. Each party represents that it has had the
opportunity to consult with an attorney, and has carefully read and understands
the scope and effect of the provisions of this Agreement. Neither party has
relied upon any representations or statements made by the other party hereto
which are not specifically set forth in this Agreement.

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         16. SEVERABILITY. In the event that any provision hereof becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said
provision.

         17. ENTIRE AGREEMENT. This Agreement and the Consulting Agreement dated
October 10, 2000, represent the entire agreement and understanding between the
Company and Individual concerning Individual's separation from the Company, and
supersede and replace any and all prior agreements and understandings concerning
Individual's relationship with the Company and his compensation by the Company.

         18. NO ORAL MODIFICATION. This Agreement may only be amended in writing
signed by Individual and the President of the Company.

         19. GOVERNING LAW. This Agreement shall be governed by the laws of the
State of California.

         20. EFFECTIVE DATE. With the exception of Section 5, which shall be
effective seven days after it has been signed by both Parties, this Agreement
shall be effective immediately after it is signed by both Parties.

         21. COUNTERPARTS. This Agreement may be executed in counterparts, and
each counterpart shall have the same force and effect as an original and shall
constitute an effective, binding agreement on the part of each of the
undersigned.

         22. VOLUNTARY EXECUTION OF AGREEMENT. This Agreement is executed
voluntarily and without any duress or undue influence on the part or behalf of
the Parties hereto, with the full intent of releasing all claims. The Parties
acknowledge that:

            (a) They have read this Agreement;

            (b) They have been represented in the preparation, negotiation, and
execution of this Agreement by legal counsel of their own choice or that they
have voluntarily declined to seek such counsel;

            (c) They understand the terms and consequences of this Agreement and
of the releases it contains;

            (d) They are fully aware of the legal and binding effect of this
Agreement.

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         IN WITNESS WHEREOF, the Parties have executed this Agreement on the
respective dates set forth below. This Agreement shall be effective as of
October 10, 2000.

                                            ZAPME! CORPORATION

Dated:            , 2000                    By
        ----------                            ----------------------------------
                                                Lance Mortensen
                                                Chief Executive Officer

                                            Bruce D. Bower, an individual

Dated:            , 2000
        ----------                          ------------------------------------

                                     Page 6

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