Document:

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                                                                    Exhibit 10.2

                                                                  EXECUTION COPY

                              AMENDED AND RESTATED
                              SEPARATION AGREEMENT

         THIS AGREEMENT (this "Definitive Agreement"), amends and restates as of
December 1, 2000 the agreement  made and entered into as of November 10, 2000 by
and between Nx Networks, Inc., 13595 Dulles Technology Drive, Herndon,  Virginia
20171 (the  "Company"),  and Steven T. Francesco,  1270 Cobble Pond Way, Vienna,
Virginia 22182 (the "Executive").

                              W I T N E S S E T H:
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         WHEREAS,  Executive  has served as the Chief  Executive  Officer of the
Company and as Chairman of the Board of Directors of the Company (the "Board");

         WHEREAS,  by  mutual  agreement  between  Executive  and  the  Company,
Executive has agreed to resign as an employee and officer of the Company and any
of its affiliates effective as of October 31, 2000 (the "Effective Date"); and

         WHEREAS,  by  mutual  agreement  between  Executive  and  the  Company,
Executive has agreed to resign from the Board and as Chairman  thereof within 30
days of the Effective Date.

         NOW,  THEREFORE,  for  and in  consideration  of the  mutual  promises,
covenants and obligations  contained herein,  the Company and Executive agree as
follows:

ARTICLE I:  RESIGNATION AND CONSULTANCY

     Section  1.1.  RESIGNATION.  Executive  hereby  resigns as Chief  Executive
Officer of the Company as of the close of business on the Effective  Date.  This
resignation as Chief Executive Officer will not affect the Executive's  position
as a member of the Board of  Directors  as  provided in the  Company's  By-laws,
however,  he  will  not  have a  contractual  right  to  remain  on  the  Board.
Notwithstanding  any contrary  provision  contained in the Employment  Agreement
between the Company and  Executive  dated  March 22,  1999,  and all  subsequent
amendments thereto (the "Employment Agreement"),  such resignations shall not be
deemed to be a breach by Executive or the Company of the  Employment  Agreement,
and in  consideration  for the  payments  and  benefits  herein  described,  the
Employment Agreement, except for sections thereof that are specifically referred
to and incorporated  herein by reference,  shall terminate and cease to have any
effect as of the Effective Date  notwithstanding  any survival  clauses  therein
contained.

     Section 1.2. CONSULTING SERVICES.  Executive shall serve as a consultant to
the Company  during the period  beginning  on the  Effective  Date and ending on
October 31, 2001,  in exchange for an annual fee of $150,000.  Such fee shall be
paid in equal monthly installments commencing as of the Effective Date, with the
first  payment  made no  later  than  five  days  after  the  expiration  of the
revocation period provided under Article VII and each subsequent payment made no
later than five days after the end of the month to which it relates. The Company
shall not treat such  payments as wages  subject to  withholding,  and Executive
agrees  to be  responsible  for all  taxes due with  respect  to such  payments.

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Executive agrees to be available for  consultation  with the Board and the Chief
Executive  Officer  of the  Company as either  shall  reasonably  request.  Such
consultation  shall not exceed 60 hours in any calendar  month or seven hours in
any one day.

ARTICLE II:  SEVERANCE PAYMENTS AND BENEFITS

     Section 2.1.  SEVERANCE  PAYMENTS.  Provided that Executive has not revoked
the general release of claims  contemplated  herein, or exercised his revocation
rights under Article VII (a) Executive shall receive his base salary computed at
an annual rate of $275,000 until the Effective Date,  which amount shall be paid
in a single  lump sum not later  than 15 days  after  the  Effective  Date;  (b)
Executive shall continue to receive base salary  payments  computed at an annual
rate of  $275,000  for a period  of three  years  from the  Effective  Date (the
"Severance  Period"),  payable in accordance with the Company's standard payroll
practices,  which payments shall total $825,000; and (c) Executive shall be paid
for six weeks of earned but unused  vacation time not later than five days after
the date this  Definitive  Agreement  is  executed  (such  amounts  collectively
referred  to as the  "Severance  Payments").  Executive  acknowledges  that  the
Severance Payments shall be made in full satisfaction of any and all amounts due
to Executive from the Company as of the Effective Date.

     Section  2.2.  OPTIONS.  Provided  that  Executive  has not  exercised  his
revocation  rights under Article VII,  Executive  has the following  rights with
respect to options to acquire Company stock: (a) The Company  acknowledges  that
Executive  has  exercised  options  for,  and  currently  has the  right to own,
1,000,000  shares  of  the  Company's  common  stock  upon  the  payment  of the
applicable  withholding  taxes and will receive a  certificate  evidencing  such
ownership  upon  payment  of such  taxes.  (b)  Notwithstanding  the  terms  and
conditions  of any stock option  agreement  between the Company and Executive to
the  contrary,  on the  Effective  Date,  all  unvested  stock  options  held by
Executive  that  are  scheduled  to vest  during  the  Severance  Period,  shall
immediately  vest and shall be exercisable  for a period of four years following
the Effective Date. The Company  acknowledges that Executive will thereupon hold
vested options to purchase  2,000,000  shares of the Company's common stock. The
Company shall use its best efforts to register the underlying  shares as soon as
practicable  after  execution by both parties of this  Definitive  Agreement for
resale under the  Securities  Act of 1933. (c) Upon execution by both parties of
this Definitive Agreement,  Executive will receive 500,000 additional options to
purchase  common  stock with an  exercise  price per share  equal to $1.00.  The
underlying  shares  shall have the same  rights to  registration  as with all of
Executive's   options.  One  eighth  (62,500)  of  these  options  shall  become
exercisable  at the  beginning  of every three month  period with the first such
period  commencing on the date of execution of this  Definitive  Agreement.  All
such  options  shall be  exercisable  upon a Change of  Control  (as  defined in
Section 3(g) of the Employment  Agreement,  which Section is incorporated herein
by  reference,  with a  revision  whereby  "50%" will  replace  "75%" in Section
3(g)(ii)).  These options shall terminate five years after the date of execution
of this Definitive Agreement.

     Section  2.3.  LIMITATION  ON STOCK  SALES.  During the  Severance  Period,
Executive  shall not,  without the written  consent of the Company,  sell in any
calendar  month an  aggregate  amount of shares of the  Company's  common  stock
(whether  Executive  holds such shares as of the Effective Date or  subsequently
acquires  them by means of the  exercise  of  options)  in  excess  of 1% of the
reported  trading  volume in such  common  stock on the Nasdaq for the  previous

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calendar month. The limitations of this Section 2.3 shall terminate, however, if
the average  closing  price for such common stock exceeds $10 per share for a 10
trading day period.

     Section 2.4. COMPANY BENEFITS.  The Executive shall be entitled to continue
to  participate  in all  medical,  health and life  insurance  plans at the same
benefit level at which he was  participating  as of the Effective Date until the
earlier of:

                           (a) the end of the Severance Period; or

                           (b) the  date,  or  dates,  he  receives   equivalent
coverage  and benefits  under the plans and  programs of a  subsequent  employer
(such  coverage  and benefits to be  determined  on a  coverage-by-coverage,  or
benefit by benefit, basis); provided that (i) if the executive is precluded from
continuing  his  participation  in any  employee  benefit  plan or program  that
provides  other or additional  benefits  then due or earned in  accordance  with
applicable  plans and programs of the Company,  for that period he shall receive
cash  payments  equal on an after-tax  basis to the cost to him of obtaining the
benefits  provided  under the plan or program from which he is  precluded,  (ii)
such cost  shall be  deemed  to be the  lowest  reasonable  cost  that  would be
incurred by the  Executive in obtaining  such benefit  himself on an  individual
basis, and (iii) payment of such amounts shall be made quarterly in advance.

         Section 2.5.  WITHHOLDING  OF TAXES.  The Company may withhold from any
benefits or compensation  payable under this  Definitive  Agreement all federal,
state,  city  or  other  taxes  as  may  be  required  pursuant  to  any  law or
governmental regulation or ruling.

         Section 2.6. NO OTHER PAYMENTS.  Except as specifically provided herein
or as  otherwise  may be  required  by law,  Executive  shall not be entitled to
receive any other  payments,  benefits  or  severance  amounts  from the Company
following the Effective Date,  whether  pursuant to the Employment  Agreement or
otherwise.

ARTICLE III:  CONFIDENTIAL INFORMATION

         Executive shall continue to comply with the  restrictions  set forth in
Section 5 of the Employment  Agreement,  which Section is incorporated herein by
reference.

ARTICLE IV:  NON-COMPETITION; NON-SOLICITATION; NON-DISPARAGEMENT

     Section 4.1.  ACKNOWLEDGEMENTS.  Executive acknowledges (a) that during his
service and employment with the Company,  he acquired special expertise,  unique
knowledge and talent in conducting his duties and that Executive had substantial
contacts with customers,  suppliers,  advertisers and vendors of the Company and
its  affiliates;  (b) that  Executive  was  placed  in a  position  of trust and
responsibility   and  had  access  to  a  substantial   amount  of  Confidential
Information,  as defined in the Employment Agreement; (c) that the Company could
be  harmed if such  expertise,  knowledge,  talent,  contacts,  or  Confidential
Information were used in competition with the Company;  (d) that during the time
of his employment  with the Company,  he gained valuable  information  about the
identity,  qualifications,  and  on-going  performance  of the  employees of the
company;  (e) that he is capable of obtaining  gainful  employment that does not
violate the restrictions contained in this Definitive Agreement; (f) that due to
Executive's  special experience and talent, the breach of this Article IV cannot

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be reasonably or adequately  compensated  solely by damages in an action at law;
and (g) that a material  inducement for the Company in executing this Definitive
Agreement and making the payments  hereunder is  Executive's  willingness  to be
bound by the terms of this Article IV.

     Section 4.2. NON-COMPETITION;  NON-SOLICITATION. Executive confirms that he
will comply with all the terms of Section 6 of the Employment  Agreement,  which
Section is incorporated  herein by reference,  and that the "Restricted  Period"
shall have the meaning set forth in Section 6(e)(i).

     Section 4.3. NON-DISPARAGEMENT. Executive and the Company each agree to not
disparage the other, their respective affiliates, and their respective officers,
directors,  employees,  representatives,  agents, and their respective heirs and
assigns.

     Section 4.4.  MISCELLANEOUS.  Executive acknowledges that the restrictions,
prohibitions  and other  provisions of this Article IV are reasonable,  fair and
equitable in scope,  term and duration,  are necessary to protect the legitimate
business  interests  of the  Company  and  its  affiliates  and  are a  material
inducement to the Company to enter into this  Definitive  Agreement and make the
payments  hereunder.  It is  the  intention  of  the  parties  hereto  that  the
restrictions  contained in this Article IV be  enforceable to the fullest extent
permitted by applicable law.  Therefore,  if, at any time, any provision of this
Article IV shall be determined to be invalid or unenforceable by reason of being
vague or unreasonable as to area, duration,  or scope of activity,  this Article
IV shall be considered  divisible and shall become and be immediately amended to
only such area,  duration  and scope of  activity as shall be  determined  to be
reasonable and enforceable by the court or other body having  jurisdiction  over
the matter,  or, if such court or other body does not expressly  determine  what
would be reasonable and enforceable,  by the Company. Executive agrees that this
Article IV as so  amended  shall be valid and  binding as though any  invalid or
unenforceable provision had not been included herein.

ARTICLE V:  RELEASE

     Section 5.1.  RELEASE OF KNOWN AND UNKNOWN CLAIMS BY EXECUTIVE.

                           (a)  It  is  understood  and agreed by the parties to
this  Definitive  Agreement  that, in  consideration  of the mutual promises and
covenants  contained in this Definitive  Agreement,  and after consultation with
counsel,   Executive   for   himself   and   each  of  his   respective   heirs,
representatives, agents, successors and assigns, irrevocably and unconditionally
releases and forever  discharges  the Company,  and its  respective  current and
former officers, directors,  shareholders,  employees,  representatives,  heirs,
attorneys and agents, as well as its respective predecessors,  parent companies,
subsidiaries, affiliates divisions, successors and assigns, and their respective
current   and   former    officers,    directors,    shareholders,    employees,
representatives,  attorneys  and  agents,  from any and all  causes  of  action,
claims, actions, rights, judgments,  obligations,  damages, demands, accountings
or liabilities of whatever kind or character,  which  Executive may have against
them,  or any of  them,  by  reason  of or  arising  out  of,  touching  upon or
concerning  Executive's  employment  with the Company and the  separation of his
employment,   or  any  and  all  other  matters  of  whatever  kind,  nature  or
description,  whether  known or unknown,  suspected  or  unsuspected.  Executive
acknowledges  that this  release  of claims  specifically  includes,  but is not
limited  to, any and all claims for  fraud;  breach of  contract;  breach of the
implied  covenant  of  good  faith  and  fair  dealing;  inducement  of  breach;

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interference  with  contractual  rights;   wrongful  or  unlawful  discharge  or
demotion;  violation  of public  policy;  invasion  of privacy;  intentional  or
negligent   infliction   of  emotional   distress;   intentional   or  negligent
misrepresentation;  conspiracy;  failure to pay wages,  benefits,  vacation pay,
severance pay,  attorneys' fees, or other compensation of any sort;  defamation;
unlawful  effort to  prevent  employment;  discrimination  on the basis of race,
color, sex, national origin,  ancestry,  religion,  age,  disability,  handicap,
medical  condition  or marital  status,  whether  such claim would arise  under,
without  limitation,  the laws of a state;  Title VII of the Civil Rights Act of
1964 (Title VII, as amended), 42 U.S.C. ss.2000, ET SEQ.; the Age Discrimination
in Employment Act ("ADEA"), 29 U.S.C. ss.621, ET SEQ.; the Older Workers Benefit
Protection Act ("OWBPA"), 29 U.S.C.  ss.626(f);  the Consolidated Omnibus Budget
Reconciliation  Act of 1985  ("COBRA");  the  Americans  with  Disabilities  Act
("ADA");  the  Occupational  Safety and Health Act  ("OSHA") or any other health
and/or safety laws,  statutes or  regulations;  the Employee  Retirement  Income
Security  Act of 1974  ("ERISA");  or the  Internal  Revenue  Code of  1986,  as
amended.

                           (b)  Notwithstanding  the  provisions of this Section
5.1,  nothing in this Definitive  Agreement shall be construed to constitute any
release or waiver by  Executive  of his  rights or claims  against  the  Company
arising out of or referred to in this  Definitive  Agreement or the  enforcement
hereof or which arise after the date of this Definitive Agreement.  In addition,
as of the Effective  Date, the Executive shall release the Company of all of its
obligations under the Employment Agreement.

                           (c)  Executive represents  and  warrants  that he has
not  assigned  or  subrogated  any of his  rights,  claims and causes of action,
including any claims referenced in this Definitive Agreement,  or authorized any
other  person or entity to assert  such  claim or claims on his  behalf,  and he
agrees to indemnify and hold harmless the Company against any assignment of said
rights, claims and/or causes of action.

     Section  5.2.  RELEASE OF CLAIMS BY THE COMPANY.  Subject to Executive  not
exercising  his  revocation   rights  under  Article  VII,  the  Company  hereby
irrevocably  and  unconditionally   releases,   waives  and  fully  and  forever
discharges  Executive,  from  and  against  any  and  all  claims,  liabilities,
obligations,  covenants,  rights,  demands and damages of any nature  whatsoever
which are known or  unknown  to the  Company  as of the date of this  Definitive
Agreement,  arising from, by reason of or in any way related to any transaction,
event or circumstance  which occurred or existed prior to and including the date
of this Definitive Agreement.  Notwithstanding the provisions of this paragraph,
nothing in this  Definitive  Agreement  shall be  construed  to  constitute  any
release  or waiver by the  Company  of its  rights or claims  against  Executive
arising out of or referred to in this  Definitive  Agreement or the  enforcement
hereof or which arise after the date of this Definitive Agreement.  In addition,
as of  Effective  Date,  the  Company  shall  release  Executive  of  all of his
obligations under the Employment Agreement.

ARTICLE VI:  MISCELLANEOUS

     Section 6.1. REMEDY. If Executive  engages in or performs,  either directly
or  indirectly,  any  of the  acts  described  in  Articles  III  or IV of  this
Definitive Agreement or, in any other way, violates either of such Articles,  it
is agreed that the Company shall have the right to seek and shall be entitled to
full injunctive relief, to be issued by any competent court of equity, enjoining
and restraining  Executive and each and every other person, firm,  organization,
association,  or corporation  concerned  therein,  from the  continuance of such

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violative  acts. The foregoing  remedies shall not be deemed to limit or prevent
the exercise by the Company of any or all further  rights and remedies which may
be available to the Company hereunder or at law or in equity.

     Section 6.2. NOTICES.  For purposes of this Definitive  Agreement,  notices
and all other  communications  provided for herein shall be in writing and shall
be deemed to have been duly given when personally  delivered,  sent by facsimile
or when mailed by United States  registered or certified  mail,  return  receipt
requested, postage prepaid, addressed to such address as provided herein or sent
to such other address or facsimile number as each party may furnish to the other
in writing from time to time in accordance with this Section 6.2.

     Section 6.3.  APPLICABLE  LAW.  This  Definitive  Agreement is entered into
under,  and shall be governed for all purposes by, the laws of the  Commonwealth
of Virginia without giving effect to any choice of law principles.

     Section  6.4. NO WAIVER.  No failure by either  party hereto at any time to
give notice of any breach by the other party of, or to require  compliance with,
any condition or provision of this  Definitive  Agreement  shall (i) be deemed a
waiver of similar or  dissimilar  provisions or conditions at the same or at any
prior or subsequent time or (ii) preclude  insistence upon strict  compliance in
the future.

     Section 6.5. SEVERABILITY.  If a court of competent jurisdiction determines
that any  provision of this  Definitive  Agreement is invalid or  unenforceable,
then the invalidity or  unenforceability  of that provision shall not affect the
validity or enforceability of any other provision of this Definitive  Agreement,
and all other  provisions shall remain in full force and effect and such invalid
or  unenforceable  provision shall be reformulated by such court to preserve the
intent of the parties hereto.

     Section 6.6.  COUNTERPARTS.  This Definitive Agreement  may  be executed in
one or more counterparts,  each of which shall be deemed to be an original,  but
all of which together will constitute one and the same Agreement.

     Section  6.7.  HEADINGS.  The  paragraph  headings  have been  inserted for
purposes of convenience and shall not be used for interpretive purposes.

     Section 6.8.  GENDER AND PLURALS.  Wherever  the  context so requires,  the
masculine  gender  includes  the  feminine or neuter,  and the  singular  number
includes the plural and conversely.

     Section  6.9.  AFFILIATE.  As  used in this  Definitive  Agreement,  unless
otherwise indicated,  "affiliate" shall mean any person or entity which directly
or indirectly through any one or more intermediaries owns or controls,  is owned
or  controlled  by, or is under common  ownership or control with the Company or
Executive.

     Section 6.10.  ASSIGNMENT  AND  DELEGATION.  This  Definitive  Agreement is
binding on Executive and the Company and their successors and assigns; PROVIDED,
HOWEVER,  that the rights and  obligations of the Company under this  Definitive
Agreement may be assigned or delegated to a successor entity by the Company.  No
rights or  obligations  of Executive  hereunder  may be assigned or delegated by
Executive to any other  person or entity,  except by will or the laws of descent

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and  distribution.  In the  event  of  Executive's  death  prior to  receipt  by
Executive of all amounts payable by the Company hereunder, such amounts shall be
payable to Executive's designated beneficiaries on the same schedule as provided
for in this Definitive Agreement.

     Section 6.11. ENTIRE AGREEMENT.  Except as otherwise  specifically provided
herein,  this  Definitive  Agreement  constitutes  the entire  agreement  of the
parties with regard to the subject  matter  hereof,  contains all the covenants,
promises,  representations,  warranties and agreements  between the parties with
respect to  Executive's  resignation  from the Company and  supersedes all prior
employment or severance  agreements  between Executive and the Company or any of
its  predecessors or affiliates,  including,  but not limited to, the Employment
Agreement. Executive acknowledges and agrees that the consideration provided for
herein is adequate  consideration  for  Executive  waiving his rights  under the
Employment  Agreement.  Except as otherwise provided herein,  each party to this
Definitive Agreement acknowledges that no representation, inducement, promise or
agreement,  oral or written,  has been made by either party, or by anyone acting
on behalf of either party,  which is not embodied herein, and that no agreement,
statement, or promise relating to Executive's resignation from the Company, that
is not contained in this Definitive  Agreement,  shall be valid or binding.  Any
modification  of this  Definitive  Agreement  will be effective only if it is in
writing and signed by the party to be charged.

     Section  6.12.  ARBITRATION.  Except as  otherwise  necessary to secure the
remedy  specified  in Section  6.1 of this  Definitive  Agreement,  any  dispute
arising  between the Company and Executive  with respect to the  performance  or
interpretation  of this Definitive  Agreement or its associated Term Sheet shall
be submitted to arbitration,  before one arbitrator, in Fairfax County, Virginia
for  resolution  in  accordance  with the  commercial  arbitration  rules of the
American Arbitration  Association,  modified to provide that the decision by the
arbitrator  shall be final and binding on the  parties,  shall be  furnished  in
writing,   separately  and  specifically   stating  the  findings  of  fact  and
conclusions of law on which the decision is based,  and shall be rendered within
90 days following  impanelment of the arbitrator.  The cost of arbitration shall
initially be borne by the party requesting arbitration.  Following a decision by
the arbitrator,  the costs of arbitration  shall be divided and legal fees shall
be awarded as directed by the arbitrator.

     Section  6.13.  LEGAL FEES.  The Company shall pay  Executive's  reasonable
legal  fees  and  expenses  up  to  $15,000  incurred  in  connection  with  the
preparation and execution of this  Definitive  Agreement and its associated Term
Sheet.  Such fees and expenses shall be paid in full within 10 days of the later
of (a) execution of this Definitive  Agreement or (b) Executive's  submission to
the Company of a bill from Executive's law firm.

     Section  6.14.  INDEMNIFICATION.  Notwithstanding  Section 5.1, the Company
shall indemnify Executive consistent with Section 9 of the Employment Agreement,
which  Section is  incorporated  herein by  reference.  Executive  shall also be
indemnified  as a  consultant  to the same extent as set forth for an officer or
employee in such Section 9. In addition,  the Executive will continue to benefit
from the terms of the  Company's  directors  and  officers  liability  insurance
policies to the same extent as other directors.

     Section 6.15. PRESS RELEASE.  Executive  acknowledges  that the Company has
given  Executive  the  opportunity  to review and comment upon the press release
announcing  Executive's  resignation.  Following the Effective  Date,  Executive

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shall make no public  statements  regarding his  resignation,  the terms of this
Definitive  Agreement or with respect to the Company  without  first  consulting
with the Company and obtaining the prior written approval of the Company.

ARTICLE VII:  EXECUTIVE ACKNOWLEDGEMENTS

         Executive acknowledges that:

                  (a) He has read and  understands  the terms of this Definitive
                  Agreement  and has  voluntarily  agreed to these terms without
                  coercion or undue  persuasion  by the Company or any  officer,
                  director or other agent thereof;

                  (b) He  has  been  encouraged  by the Company to seek, and has
                  sought and received, competent legal counsel in his review and
                  consideration of this Definitive Agreement and its terms; and

                  (c) He has been given the  opportunity  to  consider  entering
                  into this Definitive  Agreement for twenty-one days, and if he
                  should  execute  this   Definitive   Agreement  prior  to  the
                  expiration of the 21-day  consideration  period, he waives his
                  right to consider  the  Definitive  Agreement  for  twenty-one
                  days, and

                  (d) He may revoke this Definitive  Agreement within seven days
                  of the day he executes it.  Executive agrees to give notice of
                  such  revocation  by  certified  mail to the  attention of the
                  Company's  General Counsel at the address provided above. This
                  Definitive   Agreement   shall  not  be  effective  until  the
                  expiration of the 7-day revocation  period without  revocation
                  by Executive.

         IN WITNESS  WHEREOF,  the parties hereto have executed this  Definitive
Agreement as of the date first written above,  but effective as of the Effective
Date.

                                        NX NETWORKS, INC.

                                        By:_____________________________________

                                        ________________________________________
                                                  Steven T. Francesco

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                                                                    Exhibit 10.6

                              EMPLOYMENT AGREEMENT

      This Employment Agreement (the "Agreement"), effective as of March 8,
2000, is made and entered by and between Jay R. Schifferli (the "Executive") and
Netrix Corporation, a Delaware corporation doing business under the name Nx
Networks, Inc.(the "Company").

                                    AGREEMENT

      WHEREAS, the Company desires to engage the Executive to provide
services pursuant to the terms of this Agreement; and

      WHEREAS, the Executive desires to provide such services to the Company
pursuant to the terms of this Agreement;

      NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements set forth below, the parties hereto agree as follows:

1.    TERM OF EMPLOYMENT.

      The term of the Executive's employment under this Agreement shall commence
immediately upon the execution of this Agreement and end on the third
anniversary of such date (the "Term of Employment"). If the Company or the
Executive does not deliver to the other party at least 60 days prior written
notice that the Term of Employment shall end on the third anniversary of the
date hereof, the Term of employment shall automatically continue for an
additional one-year period. At the end of such one year period, the Term of
employment shall automatically continue for successive one year terms unless
either party delivers at least 60 days prior written notice that the Term or
employment shall end at the end of such one-year renewal period.

2.    DUTIES.

      (a) During the Term of Employment, the Executive shall serve as the
General Counsel and Executive Vice President of Business Development of the
Company with such authority and duties as are generally associated with such
position and as may be assigned to him from time to time by the Board of
Directors of the Company that are consistent with such authority and duties. The
Executive shall report to the President of the Company.

      (b) During the Term of Employment the Executive shall devote his full
business time and best efforts to the business and affairs of the Company.
Nothing in this Agreement shall preclude the Executive from engaging in
charitable and community affairs so long as such activities, in the reasonable
determination of the Board of Directors of the Company, do not interfere with
the execution of his duties and responsibilities hereunder or from serving,
subject to the prior approval of the Board of Directors (not to be unreasonably
withheld), as a director or trustee of any other corporation, association or
entity.

<PAGE>

3.    COMPENSATION AND RELATED MATTERS.

      (a) SALARY. During the Term, the Executive shall receive a base salary
(the "Base Salary") at the rate of $200,000 per annum. Such Base Salary shall be
payable in accordance with the Company's policies in effect from time to time,
but in any event no less frequently than monthly. The Board of Directors from
time to time may increase, but not decrease, the Base Salary. It is recognized
that the Executive will transition from his current employment over a period of
six to ten weeks, and his salary will be prorated during this period based on
the number of days he performs services for the Company.

      (b) BONUS. The Executive shall be eligible for an annual bonus in such
amount as the Board of Directors may designate. Payment of any annual bonus
shall be made at the same time that other senior-level executives receive their
bonus but in no event later than April 21 of the following year to which such
bonus relates.

      (c)   STOCK OPTIONS.

            (i) To induce the Executive to enter into this Agreement, the
      Executive is hereby granted an option (the "Stock Option") by the Company
      to purchase 200,000 shares of common stock, par value $0.05 per share, of
      the Company (the "Common Stock"). The Stock Option shall be memorialized
      in a separate stock option agreement, dated the date hereof, between the
      Company and the Executive. The exercise price of the Stock Options will be
      the closing price per share of Common Stock on the Nasdaq Stock Market on
      the date the Executive commences employment with the Company. The Stock
      Options shall vest over time as follows and be subject to earlier vesting
      as described below.

      Time vesting:

            50,000 on the date hereof, and 50,000 on each anniversary of the
      date of this Agreement.

      Accelerated vesting:

            No. Shares      Vesting Event
            ----------      -------------

            37,500          Common Stock trades at $35/share for 10 consecutive
                            trading days
            37,500          Common Stock trades at $40/share for 10 consecutive
                            trading days
            37,500          Common Stock trades at $45/share for 10 consecutive
                            trading days
            37,500          Common Stock trades at $50/share for 10 consecutive
                            trading days

            (ii) As incentive to the Executive, an additional 50,000 stock
      options will be granted to the Executive at the time the Company
      consummates a corporate merger or acquisition valued at $30 million or
      more. Such grant of additional stock options shall be memorialized in a
      separate stock option agreement, dated the grant date, between the Company
      and the Executive. The exercise price of each option shall be the market
      price of the Common Stock on the date of grant. The additional stock
      options shall vest in four equal semi-annual installments with the first
      such installment vesting on the six-month anniversary of the grant date,

                                       2

<PAGE>

      except that if such acquisition or merger constitutes a Change of Control,
      as defined in the Company's 1999 Long Term Incentive Plan, such stock
      options shall immediately vest.

            (iii) The Company shall use its best efforts to register the Common
      Stock underlying the options referred to in this Section 3(c) on
      Securities and Exchange Commission Form S-8, including the registration of
      any shares underlying stock options vested prior to the date of filing
      such Form S-8.

            (iv) The stock option agreements between the Executive and the
      Company will provide for net exercise after the Executive is no longer
      employed by the Company.

      (d) EXPENSES. The Executive is authorized to incur reasonable expenses in
carrying out his duties and responsibilities under this Agreement and the
Company shall promptly reimburse him for all business expenses incurred in
connection therewith, subject to documentation in accordance with the Company's
policy.

      (e) EMPLOYEE BENEFITS. During the Term of Employment, the Executive shall
be entitled to participate in or receive benefits under any and all employee
benefit plans, programs and arrangements on terms no less favorable than those
generally applicable to senior executives of the Company, subject to and on a
basis consistent with the terms, conditions and overall administration of such
employee benefit plans, programs and arrangements. The Executive shall also be
eligible to participate in the Company's executive perquisites in accordance
with the terms and provisions of the arrangements as in effect from time to time
for the Company's senior executives. The Executive will receive a medical
insurance coverage family plan as offered to other Executives. For the term of
his employment, said medical insurance coverage shall be for the maximum
coverage available for said medical coverage. The Executive shall also receive
the sum of $500.00 per month for automobile allowance during the term of
employment, commencing on the date he relocates to Virginia. The Executive will
receive life insurance coverage as comparable to that which is offered to any
other executive.

      (f) VACATION. The Executive shall be entitled to four weeks of paid
vacation for each 12-month period during the Term of Employment, which shall be
taken at such times and intervals as shall be determined by the Executive,
subject to the reasonable business needs of the Company. The Executive shall
also be entitled to the paid holidays and other paid leave set forth in the
Company's policies.

      (g) RELOCATION. The Company shall reimburse the Executive for the cost of
moving his household possessions to the Northern Virginia area. If the Executive
sells his current residence in connection with this relocation, then the Company
will provide to him relocation benefits related to such sale as are generally
made available to its other executives or as are customary. The Company will
reimburse the Executive for his commuting costs from Connecticut to the
Company's headquarters until the earlier of (1) his relocation to the Northern
Virginia area or (2) July 31, 2000.

      (h) PAYMENT UPON CHANGE OF CONTROL. At such time after a Change in Control
of the Company, as defined in the Company's 1999 Long Term Incentive Plan, that
either (1) the Executive is not the General Counsel of the Company (or the
entity that acquires the Company) or (2) Steven T. Francesco is not the chief

                                       3

<PAGE>

executive officer of the Company (or such acquiror), the Company shall issue to
the Executive 100,000 shares of Common Stock (or, if the Common Stock was
modified, exchanged or converted in connection with such Change of Control, the
cash, securities or other property that such 100,000 shares would represent at
the time of the Change of Control if they had been modified, exchanged or
converted in connection with such Change of Control). Such Common Stock will be
registered by the Company at the time of, or as soon as possible after, such
issuance. If as a result of a Change of Control of the Company or the receipt of
such shares or other consideration the Executive becomes subject to Section 280G
of the Internal Revenue Code (or any successor provision) which imposes an
excise tax in respect of the shares or other consideration referred to in this
Section 3(h) or the options referred to in Section 3(c), then the Company shall
pay to the Executive, in cash at the time he becomes subject to such tax, a tax
"gross-up" equal to the amount of the Executive's tax liability resulting from
such excise tax (including any tax on the amount so paid to cover this
obligation calculated at the highest marginal federal and state income tax
rates).

4.    TERMINATION OF EMPLOYMENT.

      (a) TERMINATION DUE TO DEATH. In the event the Executive's employment is
terminated due to his death, his estate or his beneficiaries, as the case may
be, shall be entitled to and their sole remedies under this Agreement shall be:

           (i)    Base Salary through the date of death which shall be paid in a
                  single lump sum not later than 45 days following the
                  Executive's death;

           (ii)   the balance of any bonus awarded and earned but not paid at
                  the time of termination, which shall be paid in a single lump
                  sum not later than 45 days following the Executive's death;
                  and

           (iii)  other or additional benefits then due or earned in accordance
                  with applicable plans and programs of the Company.

      (b) TERMINATION DUE TO DISABILITY. In the event the Executive becomes
Disabled (as defined below), the Company may terminate his employment upon
notice to that effect. Upon such a termination, the Executive or is
representative, as the case may be, shall be entitled to, and their sole
remedies under this Agreement shall be:

            (i)   Base Salary through the date of termination, which shall be
                  paid in a single lump sum not later than 45 days following
                  such termination;

            (ii)  the balance of any bonus awarded and earned but not paid at
                  the time of termination, which shall be paid in a single lump
                  sum not later than 45 days following the date of termination;
                  and

            (iii) other or additional benefits then due or earned in accordance
                  with applicable plans and programs of the Company.

                                       4

<PAGE>

For the purpose of this subsection, the Executive shall have a "Disability" at
such time as he becomes entitled to benefits under the Company's long-term
disability insurance plan as in effect from time to time.

      (c)   TERMINATION BY THE COMPANY FOR CAUSE.

            (i)   "Cause shall mean:

                  (A)   willful and material breach by Executive of Section 5 or
                        6 of this Agreement;

                  (B)   conviction of the Executive for a felony or misdemeanor
                        involving moral turpitude;

                  (C)   breach by the Executive of any alcohol, drug, sexual
                        harassment or other policy of the Company which provides
                        for termination of employment for violation;

                  (D)   repeated conscious disregard by the Executive of his
                        obligations under this Agreement or the failure to
                        perform at a level deemed reasonably appropriate to the
                        Board of Directors after written notice by the Board of
                        specific examples of the unacceptable performance
                        requiring improvement; or

                  (E)   engagement by the Executive in conduct that constitutes
                        gross neglect or willful gross misconduct in carrying
                        out his duties under this Agreement.

            (ii)  In the event the Company terminates the Executive's
                  employment for Cause, he shall be entitled to and his sole
                  remedies under this Agreement shall be:

                  (A)   Base Salary through the date of the termination of his
                        employment for Cause, which shall be paid in a single
                        lump sum not later than 45 days following the
                        Executive's termination of employment;

                  (B)   the balance of any bonus awarded and earned but not paid
                        at the time of termination, which shall be paid in a
                        single lump sum not later than 45 days following the
                        date of termination; and

                  (C)   other or additional benefits then due or earned in
                        accordance with applicable plans or programs of the
                        Company.

      (d)   TERMINATION WITHOUT CAUSE OR CONSTRUCTIVE TERMINATION WITHOUT CAUSE.
In the event the Executive's employment with the Company is terminated without
Cause (which termination shall be effective as of the date specified by the
Company in a written notice to the Executive), other than due to death or
Disability, or in the event there is a Constructive Termination Without Cause

                                       5

<PAGE>

(as defined below), the Executive shall be entitled to and his sole remedies
under this Agreement shall be:

            (i)   Base Salary through the date of termination of the Executive's
                  employment, which shall be paid in a single lump sum not later
                  than 15 days following the Executive's termination of
                  employment;

            (ii)  Base Salary, at the annualized rate in effect on the date of
                  termination of the Executive's employment for a period of one
                  year after the termination of employment (the "Severance
                  Period") payable in accordance with the Company's standard
                  payroll practices;

            (iii) the balance of any bonus awarded and earned but not paid at
                  the time of termination, which shall be paid in a single lump
                  sum not later than 45 days following the date of termination;

            (iv)  immediate vesting of all stock options which are unvested, but
                  scheduled to vest during the severance period all of which
                  will be exercisable during the Severance Period or for the
                  remainder of the exercise period, if less;

            (v)   continued participation in all medical, health and life
                  insurance plans at the same benefit level at which he was
                  participating on the date of the termination of his employment
                  until the earlier of:

                  (A)   the end of the Severance Period; or

                  (B)    the date, or dates, he receives equivalent coverage and
                         benefits under the plans and programs of a subsequent
                         employer (such coverage and benefits to be determined
                         on a coverage-by-coverage, or benefit-by benefit,
                         basis);

                  provided that (1) if the Executive is precluded from
                  continuing his participation in any employee benefit plan or
                  program as provided in this clause (v), he shall receive cash
                  payments equal on an after-tax basis to the cost to him of
                  obtaining the benefits provided under the plan or program in
                  which he is unable to participate for the period specified in
                  this clause (v), (2) such cost shall be deemed to be the
                  lowest reasonable cost that would be incurred by the Executive
                  in obtaining such benefit himself on an individual basis, and
                  (3) payment of such amounts shall be made quarterly in
                  advance; and

            (vi)  other or additional benefits then due or earned in accordance
                  with applicable plans and programs of the Company.

      "Termination Without Cause" shall mean the Executive's employment is

                                       6

<PAGE>

terminated by the Company for any reason other than Cause (as defined in Section
4C) or due to death or disability.

      "Constructive Termination Without Cause" shall mean a termination of the
Executive's employment at his initiative as provided in this Section 4(d)
following the occurrence, without the Executive's written consent, of one or
more of the following events (except as a result of a prior termination):

           (A)    a material diminution or change, adverse to Executive, in
                  Executive's positions, titles, or offices as set forth in
                  Section 2;

           (B)    any other failure by the Company to perform any material
                  obligation under, or breach by the Company of any material
                  provision of, this Agreement that is not cured within 30 days;

           (C)    any failure to secure the agreement of any successor
                  corporation or other entity to the Company to fully assume the
                  Company's obligations under this Agreement; or

           (D)    relocation of the Company's headquarters outside of the
                  Washington, D.C. metropolitan area.

      (e)  TERMINATION FOLLOWING NON-RENEWAL. In the event that the either party
notifies the other in writing at least 60 days prior to the expiration of the
then current Term of Employment that it is electing to terminate this Agreement
at the expiration of the then current Term of Employment and the Executive's
employment terminates upon such expiration, whether at the Company's initiative
or the Executive's initiative, the Executive shall be entitled to:

            (i)   Base Salary through the date of termination of the Executive's
                  employment, which shall be paid in a single lump sum not later
                  than 45 days following such termination;

            (ii)  the balance of any bonus awarded and earned but not paid at
                  the time of termination, which shall be paid in a single lump
                  sum not later than 45 days following the date of termination;
                  and

            (iii) other or additional benefits then due or earned in accordance
                  with applicable plans and programs of the Company.

      (f)  NO MITIGATION, NO OFFSET. In the event of any termination of
employment under this Section 4, the Executive shall be under no obligation to
seek other employment; amounts due the Executive under this Agreement shall not
be offset by any remuneration attributable to any subsequent employment that he
may obtain.

      (g)  NATURE OF PAYMENTS. Any amounts due under this Section 4 are in the
nature of severance payments considered to be reasonable by the Company and are
not in the nature of a penalty.

                                       7

<PAGE>

5.    CONFIDENTIALITY

      (a)  During the Term of Employment and thereafter, the Executive shall
not,  without  the prior  written  consent of the  Company,  disclose  to anyone
(except in good faith in the ordinary course of business to a person who will be
advised by the Executive to keep such  information  confidential) or make use of
any Confidential Information (as defined below) except in the performance of his
duties hereunder or when required to do so by legal process, by any governmental
agency having  supervisory  authority over the business of the Company or by any
administrative or legislative body (including a committee thereof) that requires
him to divulge, disclose or make accessible such information.  In the event that
the Executive is so ordered,  he shall give prompt written notice to the Company
in order to allow the Company the  opportunity to object to or otherwise  resist
such order.

      (b)  "Confidential Information" shall mean all information concerning the
business of the Company or any subsidiary relating to any of their products,
product development, trade secrets, customers, suppliers, finances, and business
plans and strategies. Excluded from the definition of Confidential Information
is information (i) that is or becomes part of the public domain, other than
through the breach of this Agreement by the Executive, (ii) regarding the
Company's business or industry properly acquired by the Executive in the course
of his career as an executive in the Company's industry and independent of the
Executive's employment by the Company, (iii) that becomes available to the
Executive on a non-confidential basis from a source other than the Company,
provided that such source is not known by the Executive to be subject to a
confidentiality agreement or other obligation of secrecy or confidentiality
(whether pursuant to a contract, legal or fiduciary obligation or duty or
otherwise) to the Company or any other person or entity or (iv) approved for
release by the Company or which the Company makes generally available to third
parties without an obligation of confidentiality. For this purpose, information
known or available generally within the trade or industry of the Company or any
subsidiary shall be deemed to be known or available to the public.

6.    NON-COMPETITION; NON-SOLICITATION.

      The Executive acknowledges that his employment with the Company will, of
necessity, provide him with specialized, unique knowledge and confidential
information and that, in light of the competitive nature of the Company's
business, the Company could be harmed if such knowledge and information were
used in competition with the Company. The Executive further acknowledges that
the Company would not enter into this Agreement and undertake the substantial
obligations under this Agreement without the Executive's agreement to the
following provisions of this Section 6:

      (a)  During the Restricted Period (as defined below) he will not, directly
or indirectly, as an officer, director, stockholder, partner, associate,
employee, consultant, owner, agent, co-venturer or otherwise, become or be
interested in or be associated with any other corporation, firm or business
engaged in the manufacture, marketing or sale of products which compete directly
with products of the Company. The Executive's ownership, directly or indirectly,
of not more than three percent (3%) of the issued and outstanding stock of any
corporation or other entity, the shares of which are traded on a national
securities exchange or the Nasdaq Stock Market, shall not in any event be deemed

                                       8

<PAGE>

to be a violation of the provisions of this Section 6(a). The Company agrees
that service as a lawyer in a law firm will not violate this Section 6(a) if the
Executive does not provide advice to any such competitor.

      (b)  During the Restricted Period, the Executive shall not call upon,
solicit, divert or take away, or attempt to call upon, solicit, divert or take
away, business of a type the same or similar to the business as conducted by the
Company prior to the date of termination of the Executive's employment with the
Company from any of the Customers of the Company upon whom he called or whom he
solicited or to whom he catered or with whom he became acquainted after entering
the employ of the Company.

      (c)  The Executive acknowledges and agrees that during the time of his
employment with the Company, he will gain valuable information about the
identity, qualifications and ongoing performance of the employees of the
Company. During the Restricted Period, the Executive shall not (i) hire, employ,
offer employment to, or seek to hire, employ or offer employment to, any of the
Company's senior level employees with whom he had contact prior to such
termination of employment or (ii) solicit or encourage any such senior level
employee to seek or accept employment with any other person or entity.

      (d)  The Executive represents and warrants that the knowledge, skills and
abilities he currently possesses are sufficient to permit him, in the event of
his termination of employment hereunder for any reason, to earn a livelihood
satisfactory to himself without violating any provision of this Agreement.

      (e)  For the purposes of this Section 6, "Restriction Period" shall mean
the period beginning on the date hereof and ending with:

            (i)   in the case of a termination of the Executive's employment
                  pursuant to Section 4(c) above, or if the Executive terminates
                  his employment other than pursuant to Constructive Termination
                  Without Cause or pursuant to Section 4(3), the first
                  anniversary of such termination;

            (ii)  in the case of a termination of the Executive's employment
                  pursuant to Section 4(d) above, the end of the Severance
                  Period; and

            (iii) in the case of a termination of the Executive's employment
                  pursuant to Section 4(e) above, the date of such termination;
                  PROVIDED, HOWEVER, that within 10 days after the Executive
                  announces that he will not renew his employment hereunder at
                  the end of the then current Term of Employment the Company may
                  notify the Executive that it will cause the Restriction Period
                  to be 12 months and, in consideration for such period, the
                  Company will pay to the Executive the amounts specified in
                  Section 4(e) above plus the following:

                  (A) continued participation in all medical and dental plans at
                  the same benefit level at which he was participating on the
                  date of the termination of his employment until the earlier
                  of:

                                       9

<PAGE>

                        a.   the end of the Restriction Period; or

                        b.   the date, or dates, he received equivalent coverage
                        and benefits under the plans and programs of a
                        subsequent employer (such coverage and benefits to be
                        determined on a coverage-by-coverage, or
                        benefit-by-benefit, basis);

                  provided that (x) if the Executive is precluded from
                  continuing his participation in any employee benefit plan or
                  program as provided in this clause (iii) of this Section 4(e),
                  he shall receive cash payments equal on an after-tax basis to
                  the cost to him of obtaining the benefits provided under the
                  plan or program in which he is unable to participate for the
                  period specified in this clause (iii) of this Section 4(e),
                  (y) such cost shall be deemed to be the lowest cost that would
                  be incurred by the Executive in obtaining such benefit himself
                  on an individual basis, and (z) payment of such amounts shall
                  be made quarterly in advance; and

                  (B)  Base Salary, at the annualized rate in effect on the date
                  of the Company's notice, through the end of the Restriction
                  Period, payable in accordance with the Company's standard
                  payroll practices.

7.    REMEDIES.

      In addition to whatever other rights and remedies the Company may have at
equity or in law, if the Executive breaches any of the provisions contain in
Sections 5 or 6 above, the Company (a) shall have the right to immediately
terminate all payments and benefits due under this Agreement and (b) shall have
the right to seek injunctive relief. The Executive acknowledges that such a
breach would cause irreparable injury and that money damages would not provide
an adequate remedy for the Company.

8.    RESOLUTION OF DISPUTES.

      Any disputes arising under or in connection with this Agreement shall be
resolved by binding arbitration, to be held in Washington, D.C. in accordance
with the rules and procedures of the American Arbitration Association, except
that disputes arising under or in connection with Sections 5 and 6 above shall
be submitted to a court of appropriate jurisdiction. Judgment upon the award
rendered by the arbitrators) may be entered in any court having jurisdiction
thereof. Each party shall bear his or its own costs of the arbitration or
litigation, including, without limitation, attorneys' fees. Pending the
resolution of any arbitration or court proceeding, the Company shall continue
payment of all amounts and benefits due the Executive under this Agreement.

9.    INDEMNIFICATION.

      (a) The Company agrees that if the Executive is made a party, or is
threatened to be made a party, to any action, suit or proceeding, whether civil,
criminal, administrative or investigative (a "Proceeding"), by reason of the

                                       10

<PAGE>

fact that he is or was a director, officer or employee of the Company or any
subsidiary or is or was serving at the request of the Company or any subsidiary
as a director, officer, member, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, including service with
respect to employee benefit plans, whether or not the basis of such Proceeding
is the Executive's alleged action in an official capacity while serving as a
director, officer, member, employee or agent, the Executive shall be indemnified
and held harmless by the Company to the fullest extent legally permitted or
authorized by the Company's certificate of incorporation or bylaws or
resolutions of the Company's certificate of incorporation or by laws or
resolutions of the Company's Board of Directors or, if greater, by the laws of
the State of Delaware, against all cost, expense, liability and loss (including,
without limitation, attorney's fees, judgments, fines, ERISA excise taxes or
penalties and amounts paid or to be paid in settlement) reasonably incurred or
suffered by the Executive in connection therewith, and such indemnification
shall continue as to the Executive even if he has ceased to be a director,
member, officer, employee or agent of the Company or other entity and shall
inure to the benefit of the Executive's heirs, executors and administrators. The
Company shall advance to the Executive all reasonable costs and expenses
incurred by him in connection with a Proceeding within 20 days after receipt by
the Company of a written request for such advance. Such request shall include an
undertaking by the Executive to repay the amount of such advance if it shall
ultimately be determined that he is not entitled to be indemnified against such
costs and expenses.

      (b)  Neither the failure of the Company (including its board of directors,
independent legal counsel or stockholders) to have made a determination prior to
the commencement of any proceeding concerning payment of amounts claimed by the
Executive under Section 9(a) above that indemnification of the Executive is
proper because he has met the applicable standard of conduct, nor a
determination by the Company (including its board of directors, independent
legal counsel or stockholders) that the Executive has not met such applicable
standard of conduct, shall create a presumption that the Executive has not met
the applicable standard of conduct.

      (c)  The Company agrees to continue and maintain a directors and officers'
liability insurance policy covering the Executive to the extent the Company
provides such coverage for its other executive officers.

10.   EFFECT OF AGREEMENT ON OTHER BENEFITS.

      Except as specifically provided in this Agreement, the existence of this
Agreement shall not be interpreted to preclude, prohibit or restrict the
Executive's participation in any other employee benefit or other plans or
programs in which he currently participates.

11.   ASSIGNABILITY; BINDING NATURE.

      This Agreement shall be binding upon and inure to the benefit of the
Parties and their respective successors, heirs (in the case of the Executive)
and permitted assigns. No rights or obligations of the Company under this
Agreement may be assigned or transferred by the Company except that such rights
or obligations may be assigned or transferred in connection with the sale or
transfer of all or substantially all of the assets of the Company, provided that
the assignee or transferee is the successor to all or substantially all of the
assets of the Company and such assignee or transferee assumes the liabilities,

                                       11

<PAGE>

obligations and duties of the Company, as contained in this Agreement, either
contractually or as a matter of law. The Company further agrees that, in the
event of a sale or transfer of assets as described in the preceding sentence, it
shall take whatever action it legally can in order to cause such assignee or
transferee to expressly assume the liabilities, obligations and duties of the
Company hereunder. No fights or obligations of the Executive under this
Agreement may be assigned or transferred by the Executive other than his rights
to compensation and benefits, which may be transferred only by will or operation
of law, except as provided in Section 17 below.

12.   WARRANTY OF EXECUTIVE.

      As an inducement to the Company to enter into this Agreement, the
Executive represents and warrants that he is not a party to any other agreement
or obligation for personal services, and that there exists no impediment or
restraint, contractual or otherwise, on his power, right or ability to enter
into this Agreement and to perform his duties and obligations hereunder.

13.   COMPANY REPRESENTATIONS.

   The Company represents to the Executive that this Agreement has been duly
authorized, executed and delivered by the Company and is a legal, valid and
binding obligation of the Company and that the execution, delivery and
performance of this Agreement by the Company will not breach or be in conflict
with any agreements to which the Company is a party or by which it is bound.

14.   ENTIRE AGREEMENT.

      This Agreement contains the entire understanding and agreement between the
parties concerning the subject matter hereof and supersedes all prior
agreements, understandings, discussions, negotiations and undertakings, whether
written or oral, between the parties with respect thereto.

15.   AMENDMENTS; WAIVERS.

      No provision in this Agreement may be amended unless such amendment is
agreed to in writing and signed by the Executive and an authorized officer of
the Company. No waiver by either Party of any breach by the other Party of any
condition or provision contained in this Agreement to be performed by such other
Party shall be deemed a waiver of a similar or dissimilar condition or provision
at the same or any prior or subsequent time. Any waiver must be in writing and
signed by the Executive or an authorized officer of the Company, as the case may
be. No failure to exercise and no delay in exercising any right, remedy or power
hereunder shall preclude any other or further exercise of any other right,
remedy or power provided herein or by law or in equity.

                                       12
<PAGE>

16.   SEVERABILITY OF PROVISIONS.

      In the event that any provision or any portion thereof should ever be
adjudicated by a court of competent jurisdiction to exceed the time or other
limitations permitted by applicable law, as determined by such court in such
action, then such provisions shall be deemed reformed to the maximum time or
other limitations permitted by applicable law, the parties hereby acknowledging
their desire that in such event such action be taken. In addition to the above,
the provisions of this Agreement are severable, and the invalidity or
unenforceability of any provision or provisions of this Agreement or portions
thereof shall not affect the validity or enforceability of any other provision,
or portion of this Agreement, which shall remain in full force and effect as if
executed with the unenforceable or invalid provision or portion thereof
eliminated. Notwithstanding the foregoing, the parties hereto affirmatively
represent, acknowledge and agree that it is their intention that this Agreement
and each of its provisions are enforceable in accordance with their terms and
expressly agree not to challenge the validity or enforceability of this
Agreement or any of its provisions, or portions or aspects thereof, in the
future. The parties hereto are expressly relying upon this representation,
acknowledgment and agreement in determining to enter into this Agreement.

17.   BENEFICIARIES/REFERENCES.

      The Executive shall be entitled, to the extent permitted under any
applicable law, to select and change a beneficiary or beneficiaries to receive
any compensation or benefit payable hereunder following the Executive's death by
giving the Company written notice thereof. In the event of the Executive's death
or a judicial determination of his incompetence, reference in this Agreement to
the Executive shall be deemed, where appropriate, to refer to his beneficiary,
estate or other legal representative.

18.   GOVERNING LAW.

      This Agreement shall be governed by and construed and interpreted in
accordance with the laws of the Commonwealth of Virginia without reference to
principles of conflict of laws. The parties hereby irrevocably consent to the
service of any and all process in any action or proceeding arising out of or
relating to this Agreement by the mailing of copies of such process to the
parties at the address specified in Section 19 hereof.

19.   NOTICES.

      All notices, requests, demands and other communications which are required
or may be given under this Agreement shall be in writing and shall be deemed to
have been duly given when received if personally delivered; when transmitted if
transmitted by telecopy, electronic or digital transmission method upon receipt
of telephonic or electronic confirmation; the day after it is sent, if sent for
next day delivery to a domestic address by a recognized overnight delivery
service (e.g., Federal Express); and upon receipt, if sent by certified or
registered mail, return receipt requested. In each case notice shall be sent to
the Company c/o the Board of Directors at the Company's principal executive

                                       13

<PAGE>

offices and to the Executive at his last known permanent address, or to such
other place as either party may designate as to itself or himself by written
notice to the other.

20.   HEADINGS.

      The headings of the sections contained in this Agreement are for
convenience only and shall not be deemed to control or affect the meaning or
construction of any provision of this Agreement.

21.   COUNTERPARTS.

      This Agreement may be executed in several counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute
one and the same Agreement.

      IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first written above.

                                          NETRIX CORPORATION

                                          By:__________________________________

                                          Title:_______________________________

                                          _____________________________________
                                          Jay R. Schifferli

                                       14

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