Document:

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                                                                    Exhibit 10.3

                              MAINTENANCE AGREEMENT

               MAINTENANCE AGREEMENT, dated as of February 28, 2001, and
effective as of the Effective Date (as defined in Section 3) (this "Agreement"),
by and between NEC Corporation, a Japanese corporation with its principal place
of business at 7-1, Shiba 5-chome, Minato-ku, Tokyo 108-8001, Japan ("NEC"), and
Cray Inc., a Washington corporation with its principal place of business at 411
First Avenue South, Suite 600, Seattle, WA 98104-2860 ("Cray"). NEC and Cray are
sometimes hereinafter collectively referred to as the "parties."

                                    RECITALS

               A.     NEC and Cray are parties to a Distribution Agreement,
dated as of February 28, 2001 (the "Distribution Agreement"), pursuant to which
parties have agreed that Cray shall become the distributor of certain products
of NEC upon the terms and subject to the conditions set forth therein.

               B.     The parties have agreed that the maintenance, repair and
technical support of such products shall be handled in accordance with this
Agreement, commencing from the Effective Date.

               NOW, THEREFORE, the parties, in consideration of the premises and
the mutual covenants and agreements contained herein, and intending to become
legally bound, hereby agree as follows:

                                    SECTION 1
                             MAINTENANCE OF PRODUCTS

               1.1    Definitions. Except as otherwise defined in this
Agreement, all capitalized terms shall have the meanings assigned to them in the
Distribution Agreement.

               1.2    Scope. Pursuant to the terms and conditions of this
Agreement, Cray will be the primary provider of maintenance services to
customers, and will perform installation and support services (including,
without limitation, preventative and corrective maintenance, upgrades and
configuration changes) for all hardware (the "Hardware Products") and software
(the "Software Products") contained in the Products (such services hereinafter
individually and collectively referred to as "Maintenance Services"). NEC will
provide technical support and other assistance to Cray in connection with the
Maintenance Services in accordance with the terms of this Agreement. Schedule A
sets forth the specific obligations of and procedures to be followed by NEC and
Cray with respect to the Maintenance Services and NEC's support thereof.

               1.3    Access. Each party shall take all actions and make
available on a timely basis all information and materials reasonably required
for the other party to perform its obligations hereunder. No party shall be
liable for any claims, errors or omissions resulting from untimely or incorrect
information provided by the other party. Each party shall give the other

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party access to its premises during regular business hours and at such other
times as are reasonably required, after prior consent has been obtained, to the
extent reasonably necessary for the other party to perform its obligations
hereunder.

                                    SECTION 2
                    SERVICES; PAYMENT; INDEPENDENT CONTRACTOR

               2.1    Payment. Invoices issued hereunder shall be due 30 days
after receipt by the payor. All amounts due on invoices shall be paid in United
States Dollars by wire transfer to the account specified by the payee. Invoiced
amounts not paid when due shall be subject to late charges for each month and
portion thereof that the invoice is overdue, with such late charges calculated
at the lesser of (i) 18% per annum and (ii) the maximum rate allowed by
applicable law.

               2.2    Independent Contractor. All services required of NEC under
this Agreement shall be performed by NEC as an independent contractor, and
employees of NEC providing such services shall at all times be under NEC's sole
direction and control. Neither NEC nor any other person or entity performing any
services hereunder on behalf of NEC shall be deemed for any purpose to be the
agent, servant, employee or representative of Cray in the performance of this
Agreement. The relationship of NEC to Cray under this Agreement shall be that of
an independent contractor. Nothing in this Agreement shall be construed to mean
that NEC is a partner or a joint venturer of Cray.

                                    SECTION 3
                                      TERM

               The term of this Agreement shall be conditioned upon and commence
upon the date (the "Effective Date") of the closing under the Stock Purchase
Agreement and shall terminate (i) with respect to Sections 1, 2.1, 2.4, 2.5,
2.6, 2.7, 2.8 and 3.3 of Schedule A immediately upon a notice of termination
delivered pursuant to Section 5, and (ii) with respect to all other provisions
of this Agreement, five years after a notice of termination is delivered
pursuant to Section 5.

                                    SECTION 4
                                   LIABILITIES

               4.1    Indemnity. Subject to Section 4.2, Cray shall indemnify
and hold harmless NEC and its subsidiaries, affiliates, successors and assigns,
and their respective directors, officers, shareholders, agents and employees
(collectively, the "NEC Indemnitees"), against and from any and all claims,
demands, complaints, liabilities, losses, damages and all costs and expenses
(collectively, "Losses") arising from or relating to any act or omission of
Cray, its subsidiaries, affiliates, directors, officers, agents, subcontractors
or employees relating the Maintenance Services (including, without limitation,
any failure by any of them to strictly comply with NEC's instructions and
procedures relating to the Products); provided, however, that no NEC Indemnitee
shall be entitled to indemnification hereunder to the extent its claim for

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indemnification shall be finally adjudged to be attributable to its gross
negligence, bad faith or willful misconduct, as may be finally determined by an
arbitration pursuant to Section 6.13. Subject to Sections 4.2 and 4.3, NEC shall
indemnify and hold harmless Cray and its subsidiaries, affiliates, successors
and assigns, and their respective directors, officers, shareholders, agents and
employees (collectively, the "Cray Indemnitees"), against and from any and all
Losses arising from or relating to any act or omission of NEC, its subsidiaries,
affiliates, directors, officers, agents, subcontractors or employees relating
the Maintenance Services; provided, however, that no Cray Indemnitee shall be
entitled to indemnification hereunder to the extent its claim for
indemnification shall be finally adjudged to be attributable to its gross
negligence, bad faith or willful misconduct, as may be finally determined by
arbitration pursuant to Section 6.13.

               4.2    Consequential and Other Damages. Neither party shall be
liable for, and each party expressly waives any right to recover from the other
party, whether in contract, in tort (including without limitation negligence and
strict liability) or otherwise, any punitive, exemplary, special, indirect,
incidental or consequential damages whatsoever, which in any way arise out of,
relate to, or are a consequence of any NEC Indemnitee's or Cray Indemnitee's
performance or nonperformance hereunder, or the provision of or failure to
provide any service which either party is obligated to provide hereunder,
including, but not limited to, loss of profits, business interruptions and
claims of customers.

               4.3    Limitation of Liability. In any event, the liability of
any NEC Indemnitee with respect to this Agreement or anything done in connection
herewith, including, but not limited to, the performance or breach hereof, or
from the sale, delivery, provision or use of any service or product provided
under or covered by this Agreement, whether in contract, tort (including without
limitation negligence or strict liability) or otherwise, shall not exceed the
aggregate of all fees then paid by Cray to NEC hereunder within the twelve month
period immediately preceding the date of Cray's claim relating thereto.

               4.4    Obligation to Reperform. In the event that Cray becomes
aware of any material breach of this Agreement by NEC with respect to any error
or defect in the provision of any service it is obligated to provide under this
Agreement, and Cray notifies NEC of such breach, NEC shall promptly make
commercially reasonable efforts to correct such error or defect.

               4.5    Notification and Procedures. In connection with any
indemnity hereunder, the party seeking an indemnity shall: (i) promptly notify
the indemnifying party of any claim or proceeding, or threatened claim or
proceeding; (ii) permit the indemnifying party to take full control of such
claim or proceeding; (iii) cooperate in the investigation and defense of such
claim or proceeding; (iv) not compromise or otherwise settle such claim or
proceeding without the prior written consent of the indemnifying party, which
consent shall not be unreasonably withheld, conditioned or delayed; and (v) take
all reasonable steps to mitigate any loss or liability in respect of any such
claim or proceeding. In any action in which the indemnifying party assumes
control, the indemnifying party shall not enter into any settlement without the
prior written consent of the indemnified party, which shall not be unreasonably
withheld, conditioned or delayed.

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                                    SECTION 5
                                   TERMINATION

               5.1    Termination for Breach. This Agreement may be terminated
by Cray if NEC materially breaches any provision of this Agreement and such
breach is not cured within thirty (30) days after written notice, or if such
breach is not susceptible to cure within thirty (30) days, then within a
reasonable time thereafter provided that NEC begins such cure and diligently
pursues such cure within such thirty (30) days. This Agreement may be terminated
by NEC if Cray materially breaches this Agreement and such breach is not cured
within thirty (30) days after written notice, or if such breach is not
susceptible to cure within thirty (30) days, then within a reasonable time
thereafter provided that Cray begins such cure and diligently pursues such cure
within such thirty (30) days.

               5.2    Termination Upon Certain Events. NEC may terminate this
Agreement immediately if (i) Cray files a petition in bankruptcy or makes a
general assignment for the benefit of creditors or otherwise acknowledges
insolvency, (ii) Cray is adjudged bankrupt or goes into liquidation, (iii) a
receiver is appointed for the benefit of Cray, (iv) NEC terminates the
Distribution Agreement, or (v) there shall occur a Change of Control of Cray.
"Change of Control" means (a) (x) the merger or consolidation of Cray into or
with one or more entities, (y) the merger or consolidation of one or more
entities into or with Cray or (z) a completed tender offer or other business
combination if, in the case of (x), (y) or (z), the stockholders of Cray prior
to such merger, consolidation or business combination do not retain at least a
majority of the voting power of the surviving entity or (b) the involuntary
sale, conveyance, exchange or transfer to another entity of (I) the voting
capital stock of Cray if, after such sale, conveyance, exchange or transfer, the
stockholders of Cray prior to such sale, conveyance, exchange or transfer do not
retain at least a majority of the voting power of Cray or (II) all or
substantially all of the assets of Cray.

               5.3    Sums Due. In the event of a termination of this Agreement,
each party shall be entitled to all outstanding amounts due to it from services
provided by it under this Agreement up to the date of termination.

                                    SECTION 6
                                  MISCELLANEOUS

               6.1    Succession and Assignment. This Agreement shall be binding
upon and inure to the benefit of the parties named herein and their respective
successors and permitted assigns. No party may assign either this Agreement or
any of its rights, interests or obligations hereunder without the prior written
approval of the other party; provided, however, that (i) without the consent of
the other party, a party may assign any or all of its rights and delegate any or
all its obligations hereunder to any entity controlling, controlled by or under
common control with such party, in which event the assigning party shall remain
fully liable for the performance of all its obligations hereunder; and (ii)
subject to Section 5.2, a successor in interest by merger, by operation of law,
or by assignment, purchase or other acquisition of all or

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substantially all the business of a party may acquire the respective rights and
obligations of such party under this Agreement. Any prohibited assignment shall
be null and void.

               6.2    Construction. This Agreement is the result of negotiation
between sophisticated parties and no provision hereof shall be construed against
a party solely because that party was responsible for drafting the provision.

               6.3    Entire Agreement. This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof.

               6.4    Severability. If any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions hereof shall not be in any way impaired, unless the
provisions held invalid, illegal or unenforceable shall substantially impair the
benefits of the remaining provisions hereof.

               6.5    Amendment and Waiver. No waiver of any violation or
nonperformance of this Agreement in one instance will be deemed to be a waiver
of any subsequent violation or nonperformance. All waivers must be in writing
and signed by the party making such waiver. This Agreement may not be modified
or amended except in writing signed by each party.

               6.6    Notice. All notices, demands and other communications
provided for or permitted hereunder shall be made in writing and shall be by
registered or certified first-class mail, return receipt requested, telecopier,
courier or personal delivery:

                      (i)    If to Cray, to:

                             Cray Inc.
                             411 First Avenue South, Suite 600
                             Seattle, WA 98104-2860
                             Telecopy: (206) 701-2218
                             Attention: Kenneth W. Johnson

                             With a copy to:

                             Stoel Rives LLP
                             900 SW Fifth Avenue, Suite 2600
                             Portland, OR 97204-1268
                             Telecopy: (503) 220-2480
                             Attention: Jere M. Webb

                      (ii)   If to NEC:

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                             NEC Corporation
                             1-10, Nisshincho
                             Fuchu City
                             Tokyo 183-8501 Japan
                             Telecopy: 81-42-333-6382
                             Attention: General Manager, Supercomputer
                                        Marketing Promotion Division

                             With a copy to:

                             Paul, Weiss, Rifkind, Wharton & Garrison
                             1285 Avenue of the Americas
                             New York, NY 10019-6064
                             Telecopy: (212) 757-3990
                             Attention: Marc E. Perlmutter, Esq.

               All such notices, demands and other communications shall be
deemed to have been duly given when delivered by hand, if personally delivered;
when delivered by a recognized international express courier service, if
delivered by courier; five (5) business days after being deposited in the mail,
postage prepaid, if mailed; and when receipt is mechanically acknowledged, if
telecopied. Any party may by notice given in accordance with this Section 6.6
designate another address or person for receipt of notices hereunder.

               6.7    Counterparts. This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

               6.8    Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

               6.9    Choice of Law. This Agreement will be governed by the
internal laws of the State of New York without regard to the conflicts of laws
principles thereof.

               6.10   Force Majeure; Maintenance.

                      (a)    If the whole or any part of the performance by NEC
of any part of its obligations under this Agreement is prevented, hindered or
delayed or otherwise made impracticable by reason of strikes, labor troubles,
floods, fires, accidents, earthquakes, riots, explosions, wars, hostilities,
acts of government, customs barriers or taxes, export/import control
regulations, interruption or shortage of or delay in transportation, inability
to obtain key raw materials, components or supplies or other cause of like or
different character beyond the reasonable control of NEC, NEC shall be excused
from such performance during the continuance of such contingency and for so long
as such contingency shall continue to prevent, hinder or

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delay such performance. If the contingency specified in this Section 6.10 shall
continue for more than six (6) months from its occurrence, either party may
terminate this Agreement (subject to Section 5.3) forthwith without any
liability by giving a written notice to the other party.

                      (b)    NEC shall have the right to cease temporarily for
maintenance purposes the operation of the equipment or facilities providing any
service it is obligated to perform hereunder whenever it determines in its
reasonable and good faith judgment such action is necessary. In the event such
maintenance is required, Cray shall be reasonably notified of such maintenance
(which notice may be given during or after any emergency maintenance).
Notwithstanding the above, NEC shall give Cray as much advance notice of any
shutdown as is reasonably practicable. Where written notice is not feasible,
oral notice may be given. NEC shall be relieved of its obligations to provide
the applicable service during the period that the necessary equipment or
facilities are shut down; provided, that NEC shall use commercially reasonable
efforts to restart such equipment or reopen such facilities as promptly as
practicable.

               6.11   No Third-Party Beneficiaries. Except as provided in
Section 4, nothing in this Agreement shall confer any rights upon any person or
entity other than the parties and each party's respective successors and
permitted assigns.

               6.12   Confidentiality. This Agreement shall be covered by the
confidentiality provisions in Section 10.11 of the Stock Purchase Agreement,
which shall survive the termination or expiration of this Agreement for a period
of two years.

               6.13   Dispute Resolution. Any dispute, controversy or claim
arising out of or in connection with this Agreement that the parties are unable
to resolve amicably shall be determined and settled by arbitration in London, UK
in accordance with the rules then in effect of the International Chamber of
Commerce; and both parties hereby consent to the jurisdiction thereof. Any award
rendered shall be final and conclusive upon the parties and a judgment thereon
may be entered in a court having competent jurisdiction.

               6.14   Survival. Sections 4.1, 4.2, 4.3, 4.5, 5.3 and 6 shall
survive the expiration or termination of this Agreement.

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

                                        CRAY INC.

                                        By: /s/ James E. Rottsolk
                                            -----------------------------------
                                            Name: James E. Rottsolk
                                            Title: President and CEO

                                        NEC CORPORATION

                                        By: /s/ Kazuhiko Kobayashi
                                            -----------------------------------
                                            Name: Kazuhiko Kobayashi
                                            Title: Senior Vice President

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                                   SCHEDULE A
                                       to
                              MAINTENANCE AGREEMENT

1.      SUPPORT SERVICES

        1.1     General.

        1.1.1   Cray will make commercially reasonable efforts, at Cray's
                expense, to develop its own capabilities to be the primary
                provider of Maintenance Services.

        1.1.2   NEC will provide on-site support in emergency situations only,
                as determined by NEC in its sole reasonable discretion.

        1.1.3   Upon prior written approval by NEC, Cray may subcontract all or
                any part of the Maintenance Services to a Cray subsidiary or a
                third party (each, an "Approved Third Party"). Cray shall
                guarantee the obligations of and performance by any such
                Approved Third Party.

        1.1.4   Detailed procedures relating to the provision of the Maintenance
                Services, including remote and on-site support, training and
                special services, will be defined in the NEC/Cray Product
                Support Plan (the "Operational Plan"). The Parties may amend
                and/or supplement the Operational Plan in writing, as mutually
                deemed appropriate. The Operational Plan shall be used solely
                for operational purposes, and not for specifying contractual
                obligations of either party.

2.      HARDWARE MAINTENANCE SERVICE

        2.1    General.

               2.1.1 Cray shall perform installation and maintenance service
               either directly or through an Approved Third Party on Products in
               strict accordance with the procedures recommended by NEC in the
               applicable documentation, provided, that if there is any
               procedure not adequately covered by the applicable documentation,
               Cray may perform such installation and maintenance service in a
               professional manner.

        2.1.2  Maintenance service to be performed by Cray shall consist of (i)
               diagnosing hardware problems, (ii) tracing the problems to the
               Spare Parts level, and (iii) rectifying the problems by replacing
               Spare Parts.

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        2.1.3  It is further understood that no repair license is granted by NEC
               to Cray with respect to the Spare Parts and therefore NEC will
               not be required to provide to Cray any support, information or
               documentation for repair by Cray of such Spare Parts.

        2.1.4  The term "Spare Parts" as used herein shall mean field
               replaceable units such as components and subassemblies of
               Hardware Products which shall have the same List Prices for all
               overall sales of Spare Parts. For this purpose the term "List
               Prices" refers to NEC's standard international list prices for
               the Spare Parts (which prices shall be the same for all
               countries, except Japan), as published from time to time in the
               Repairable Spare Parts List and the Consumable Spare Parts List.
               Spare Parts shall consist of "Repairable Spare Parts" and
               "Consumable Spare Parts" as shall from time to time be designated
               by NEC in the form of Repairable Spare Parts List and Consumable
               Spare Parts List, respectively. Spare Parts Lists, which contain
               part prices, repairable/non-repairable ID, repair charge of
               repairable part and part failure rate, will be periodically
               provided to Cray.

        2.1.5  To ensure its proper maintenance service, Cray shall purchase
               from NEC and maintain in stock such quantities of Spare Parts as
               reasonably recommended by NEC and accepted by Cray, unless
               otherwise agreed. Cray shall store Spare Parts at all times in
               suitable, dry and clean premises and comply in all respects with
               any reasonable instruction for storage that may be given by NEC
               from time to time. Cray shall use Spare Parts supplied hereunder
               solely for its performance of maintenance service on Hardware
               Products and for no other purposes, unless maintenance service
               shall be subcontracted by Cray to an Approved Third Party in
               which case the Approved Third Party may use Spare Parts for the
               purpose of maintenance of Hardware Products. For avoidance of
               doubt, Cray may not use the Spare Parts to assemble a Product
               from scratch.

        2.1.6  NEC will provide Cray, for use in performing installation and
               maintenance service on Hardware Products, such special (i) tools,
               test equipment and measuring instruments ("Tools") and (ii) test
               and diagnostic programs ("T&D Programs") as shall be recommended
               by NEC in writing for these purposes. The Tools will be provided
               at reasonable charges and the T&D Programs will be provided
               without charge. Cray shall use such Tools and T&D Programs
               supplied hereunder solely for its performance of installation and
               maintenance services on Hardware Products and for no other
               purposes, unless maintenance service shall be subcontracted by
               Cray to an Approved Third Party in which case the Approved Third
               Party may use the Tools and T&D Programs for the purpose of
               maintenance of Hardware Products. Cray shall not copy, reproduce,
               modify or disclose, or otherwise make available to any other
               person, all or any part of T&D Programs. Notwithstanding the
               foregoing, Cray may copy all or any part of T&D Programs, in
               printed or machine-readable form, for any purposes mutually
               agreed upon by NEC and Cray;

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               provided, that Cray shall reproduce NEC's copyright notice on
               each such copy. Cray shall have the right to make the material
               and information referred to in this Section 2.1.6 available to
               Approved Third Parties pursuant to a confidentiality agreement.

        2.2    Supply of Spare Parts, Tools and Test Equipment

        2.2.1  NEC agrees to supply the Spare Parts and Tools to Cray during the
               term of this Agreement and for a period of five (5) years after
               the discontinuance announcement of relevant Products by NEC to
               Cray or the termination of the Distribution Agreement.

               1)  On the fifth day of each month of the term of this Agreement,
                   Cray shall provide NEC with an eighteen (18) month rolling
                   forecast for Spare Parts and Tools together with and in the
                   same manner as the Product rolling forecast called for by the
                   Distribution Agreement.

               2)  In the event that NEC decides to discontinue supply of Spare
                   Parts and Tools at any time after the expiration of the said
                   period of five (5) years, NEC shall give Cray at least three
                   (3) months' notice prior to the date of receiving final order
                   for such Spare Parts and Tools.

               3)  Any orders for Spare Parts and Tools from Cray shall be
                   subject to applicable lead time of not less than six (6)
                   months, provided that in case of emergency order NEC shall
                   make commercially reasonable efforts to promptly airfreight
                   ordered Spare Parts and Tools to Cray, consistent with the
                   nature of the emergency.

               4)  Except as provided in Section 5.2 of the Transition
                   Agreement, Cray shall purchase the Spare Parts from NEC at
                   the list price specified in the Spare Parts Lists, provided
                   that such prices shall be no greater than the prices NEC
                   charges its subsidiaries for the same Spare Parts. Except as
                   otherwise expressly stated herein, the purchase and sale of
                   Spare Parts shall be governed by the terms, conditions and
                   procedures of the Distribution Agreement (including, without
                   limitation, Sections 4, 5 and 6).

        2.3    Repair or Replacement of Repairable Spare Parts

        2.3.1  With respect to the failed Repairable Spare Parts of Products not
               covered by NEC's warranty obligations under the Distribution
               Agreement, NEC shall, if requested by Cray, at its sole option,
               repair or replace such Repairable Spare Parts at the Repair
               Charge of such Repairable Spare Parts. NEC will repair or replace
               such Repairable Spare Parts to then current latest revision
               level. The repair or replacement charge (the "Repair Charge")
               will be defined for each repairable part in the Repairable Spare
               Part List, provided, that the cost of transportation shall be
               borne by Cray.

<PAGE>   12

        2.3.2  In the event that Cray requests NEC to repair a Repairable Spare
               Part, Cray shall at its expense return the failed Repairable
               Spare Parts to NEC's manufacturing facilities in Japan. Cray
               shall, at the same time, furnish all information available to it
               regarding any failed Repairable Spare Parts to enable NEC to
               determine the cause and existence of the alleged failure. If
               NEC's inspection reveals that such failure does not exist, NEC
               shall return to Cray the Repairable Spare Parts at the expense of
               Cray and Cray shall pay the repair charge for "no-failure found"
               specified in the Operational Plan.

        2.3.3  NEC shall use its reasonable efforts to repair the returned
               Repairable Spare Parts within thirty (30) working days after it
               has received such Repairable Spare Parts at its manufacturing
               facilities in Japan. Upon completion of such repair, NEC shall
               send to Cray repaired Repairable Spare Parts "CIP" (as defined in
               INTERCOMS 2000) named Japanese airport basis. If in the judgment
               of NEC the returned Repairable Spare Parts are not repairable,
               NEC shall return the Repairable Spare Parts to Cray at Cray's
               option and expense, and shall provide Cray with replacement
               Repairable Spare Parts in accordance with Section 2.2, if Cray so
               elects.

        2.3.4  NEC agrees to repair or replace failed Repairable Spare Parts
               during the term of and in accordance with this Agreement and for
               a period of five (5) years after the discontinuance announcement
               of relevant Products by NEC to Cray or the termination of the
               Distribution Agreement.

        2.4    Documentation

        2.4.1  One set of maintenance documentation for the Hardware Products
               shall be provided by NEC to Cray without charge. The
               documentation will be listed in the Operational Plan.

        2.4.2  A single copy of updates to the documentation shall be provided
               to Cray in the English language for maintenance and updating of
               existing field and library documentation.

        2.4.3  Cray may use (which includes the right to translate, adapt, copy
               and modify) the documentation and updates to prepare Cray's
               maintenance, operation and support documents only for the purpose
               of maintenance of Hardware Products.

        2.4.4  Cray shall take all appropriate legal measures to protect NEC's
               rights in the documentation provided to Cray under this
               Agreement, including securing NEC's copyrights in all
               jurisdictions in which Cray employs the documentation or portions
               thereof.

        2.5    Training of Cray Personnel

<PAGE>   13

        2.5.1  NEC shall, upon request of Cray, conduct training courses in
               Japan or a place mutually agreeable to NEC and Cray to the extent
               necessary for performing installation and maintenance of Products
               hereunder. The number of Cray's trainees, the time schedule of
               such training and other details shall be determined in advance by
               agreement between the parties hereto. NEC shall, upon receiving
               Cray's request for training, make reasonable efforts to provide
               such training to Cray personnel in accordance with the time
               schedule given by Cray.

        2.5.2  Cray shall cause its trainees who participate in training courses
               to be conducted in Japan to comply in all respects with NEC's
               internal rules and regulations.

        2.5.3  NEC shall provide copies of all necessary materials to each
               trainee. Cray may record any or all training courses on video
               tape and, after NEC's review and consent to its contents, Cray
               may reproduce and distribute such video tape, for internal use
               only by Cray, under Cray's name.

        2.5.4  In the Initial Period, NEC will provide training without charge.
               With respect to each training course under this Agreement, Cray
               shall be responsible for all costs associated with the travel and
               living expenses of Cray employees. In addition, following the
               Initial Period Cray shall pay to NEC (i) a training charge
               mutually agreed in advance, (ii) machine time and training
               materials provided by NEC, if any, at NEC's intra-company charges
               and (iii) round trip air fares by economy class for NEC
               instructors if it is agreed that the training is to be conducted
               in the U.S.A. (collectively, the "Training Reimbursement"). The
               Training Reimbursement shall be annually adjusted in each March
               during the term of this Agreement. Such adjusted Training
               Reimbursement for a given year shall be applied from the 1st day
               of April of that year.

        2.6    Technical Support

        2.6.1  If Cray or Approved Third Parties encounter in the performance of
               maintenance service on Hardware Products problems that require
               NEC assistance in spite of its reasonable efforts to complete the
               service without such assistance, Cray may, through facsimile
               and/or electronic mail, request technical consultation of NEC
               engineers in Japan by informing fully NEC of the nature of the
               problems ("Escalation Call"). Only the Cray personnel listed in
               the Operational Plan may make an Escalation Call. NEC shall make
               reasonable efforts to advise Cray of the solution to the problems
               as quickly as possible. If NEC does not have a known solution for
               the problems reported by Cray, NEC will make commercially
               reasonable efforts to develop a solution if so requested by Cray.
               In this case, Cray shall pay to NEC an escalation charge of $*
               per event (the "Escalation Charge"), provided, that no Escalation
               Charge will be paid by Cray for technical consultation on the
               problems caused by NEC's manufacturing defect or design fault in
               Hardware Products. The

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* Confidential material has been intentionally omitted at this point pursuant to
a request for confidential treatment, and such material has been filed
separately with the Securities and Exchange Commission.

<PAGE>   14

               Escalation Charge shall be annually adjusted in each March during
               the term of this Agreement after consultation with Cray. Such
               adjusted charge for a given year shall be applied from the 1st
               day of April of that year.

        2.6.2  Upon Cray's written request, NEC will perform technical support
               through an NEC engineering team, by facsimile and/or electronic
               mail for the Products, during NEC's normal business hours, at a
               monthly technical support fee of $* per installed system (the
               "Support Fee"). Technical Support shall include (i) failure
               analysis of the Products, provided, that Cray agrees to notify
               NEC in writing of a technical description and/or data of such
               failure or defect of such Products and (ii) answers to Cray's
               technical inquiries (not related to any specific failure and/or
               problem in the field, for which technical support will be
               provided in accordance with Section 2.6.1 above). The Support Fee
               does not include charges for failed part analysis which is
               separately defined. The Support Fee shall be annually adjusted in
               each March during the term of this Agreement after consultation
               with Cray. Such adjusted charge for a given year shall be applied
               from the 1st day of April of that year. Only Cray personnel
               listed in the Operational Plan may make a technical inquiry.

        2.7    Dispatch of NEC Engineers

        2.7.1  NEC shall, upon Cray's reasonable request, dispatch engineer(s)
               to Cray in order to provide technical advice on installation,
               operation and maintenance of the Products supplied under the
               Distribution Agreement. The necessity of such dispatch, the
               number of NEC engineers to be sent, the time schedule of such
               dispatch and other details shall in advance be determined and
               agreed between the parties. Cray shall submit for review and
               acceptance by NEC a prior written request for such dispatch,
               stating the purpose of such dispatch, the desired number and
               qualification of NEC engineers, the time schedule and other
               details.

        2.7.2  Unless otherwise agreed to by NEC, the working time of each NEC
               engineer dispatched shall not exceed eight (8) hours (excluding
               one hour lunch time) per day and five (5) days per week.

        2.7.3  Cray shall reimburse NEC for travel and living expenses incurred
               in dispatching its engineers to Cray. In addition, Cray shall pay
               to NEC a dispatching fee calculated at the rate of $* per
               calendar day for each NEC engineer dispatched under this Section
               2.7 (the "Dispatching Fee"), provided, that no Dispatching Fee
               will be paid by Cray for technical assistance on the problems
               caused by NEC's manufacturing defect or design fault in Hardware
               Products. The Dispatching Fee shall be applicable and paid for
               the workdays from the day the respective engineer leaves Japan to
               the day he leaves the place of destination (both inclusive). The
               Dispatching Fee shall be annually adjusted in

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* Confidential material has been intentionally omitted at this point pursuant to
a request for confidential treatment, and such material has been filed
separately with the Securities and Exchange Commission.

<PAGE>   15

               each March during the term of this Agreement. Such adjusted fee
               for a given year shall be applied as from the 1st day of April of
               that year.

        2.8    Field Change Order

        2.8.1  NEC shall issue Field Change Orders ("FCO") for Hardware Products
               and Spare Parts in case of recurring failure and as otherwise
               required. NEC shall provide FCO kits for Hardware Products and
               Spare Parts without charge in accordance with NEC's round-robin
               schedule. Cray shall promptly install such FCO kits at its own
               expense and its own responsibility, and shall return the replaced
               parts to NEC at Cray's cost. The detailed procedures shall be set
               forth in the Operational Plan.

3.      SOFTWARE MAINTENANCE SERVICE

        3.1    Maintenance Support

        3.1.1  Scope: During the term of this Agreement, NEC shall provide to
               Cray maintenance support for the Software Products on a level
               consistent with that generally provided by NEC to its other
               customers, including updates or upgraded versions to the Software
               Products (collectively, "Updates"). The timing and content of all
               Updates shall be determined by NEC, in NEC's sole discretion. The
               software including Updates shall be furnished not more frequently
               than twice a year. NEC shall also correct any reproducible
               malfunctions and shall furnish the corrected Software, provided,
               that Cray provides the detailed information of malfunctions of
               the Software Products and test cases including, without
               limitation, a source program which demonstrates such
               malfunctions. NEC shall use commercially reasonable efforts to
               promptly correct such malfunctions and promptly upon such
               correction, furnish Cray with the corrected version (or portion)
               of the Software Products, provided, that, in the event NEC
               reasonably believes that any such malfunction will not cause
               serious problems with normal use of the Software Products, NEC
               may consult with Cray and Cray shall allow NEC additional time to
               furnish corrected Software Products. More detailed procedures
               regarding Updates and malfunction corrections shall be proved for
               in the Operational Plan.

        3.1.2  Fee: In consideration of the software maintenance support under
               Section 3.1.1 Cray shall pay to NEC an annual software
               maintenance fee (the "Software Maintenance Fee"), due on March 31
               of each year, equal to the greater of (i) * percent (*%) of the
               aggregate of the List Prices of all of the Software Products sold
               to Cray as of December 31 of the immediately preceding year and
               still in use (pro-rated pursuant to the following sentence), and
               (ii) $*; provided, that the $* minimum is waived for the Initial
               Period. The amount specified in

--------
* Confidential material has been intentionally omitted at this point pursuant to
a request for confidential treatment, and such material has been filed
separately with the Securities and Exchange Commission.

<PAGE>   16

               subclause (i) shall be pro-rated, in the case of Software
               Products installed in the immediately preceding year, by the
               number of months that such Software Products were actually
               installed at the customer's site.

        3.2    Technical Consultation

        3.2.1  NEC shall provide Cray with technical consultation for the
               Software Products, for a consulting fee of $* (the "Technical
               Inquiry Fee") for each PSR (as defied in the Operational Plan).
               The scope of the procedures for technical consultation shall be
               defined in the Operational Plan.

        3.3    Documentation

        3.3.1  One set of maintenance documentation, including an English
               language copy of the user's manual for the Software Products
               shall be provided by NEC to Cray without charge. The
               documentation will be listed in the Operational Plan.

        3.3.2  A single copy of updates to the documentation shall be provided
               to Cray in the English language.

        3.3.3  To the extent that NEC has the right to permit Cray to do so
               without payment to third parties, Cray may use (which includes
               the right to translate, adapt, copy and modify) the documentation
               and updates to prepare Cray's maintenance, operation and support
               documents only for the purpose of maintenance of Software
               Products.

        3.3.4  Cray shall take all appropriate legal measures to protect NEC's
               and third parties' rights in the documentation provided to Cray
               under this Agreement, including securing NEC's copyrights in all
               jurisdictions which Cray employs the documentation or portions
               thereof.

--------
* Confidential material has been intentionally omitted at this point pursuant to
a request for confidential treatment, and such material has been filed
separately with the Securities and Exchange Commission.<PAGE>   1
                                                                   EXHIBIT 10.56

                        SEVERANCE COMPENSATION AGREEMENT
                          DATED AS OF DECEMBER 8, 2000
                                     BETWEEN
               DATUM INC., A DELAWARE CORPORATION, (THE "COMPANY")
                                       AND
                        ROBERT J. KRIST (THE "EXECUTIVE")

        The Company's Board of Directors (the "Board") has determined that it is
appropriate to reinforce and encourage the continued attention and dedication of
members of the Company's management, including the Executive, to their assigned
duties without distraction in potentially disturbing circumstances arising from
the possibility of a change in control of the Company.

        This Agreement sets forth the severance compensation which the Company
agrees it will pay to the Executive if the Executive's employment with the
Company terminates under one of the circumstances described herein following a
"Change in Control" of the Company (as defined in Section 2).

        1. Term. The term ("Term") of this Agreement shall commence on the date
hereof and, subject to earlier termination pursuant to Section 3(b), 3(c) or
3(d) hereof, shall end three (3) years following the date on which notice of
non-renewal or termination of this Agreement is given by either the Company or
Executive to the other. Thus, this Agreement shall be renewable automatically on
a daily basis so that the outstanding Term is always three (3) years following
any effective notice of non-renewal or of termination given by the Company or
Executive.

        2. Change in Control. No compensation shall be payable under this
Agreement unless and until (a) there has been a Change in Control of the Company
while the Executive is still an employee of the Company and (b) the Executive's
employment by the Company terminates in the circumstances specified in Section
3(a). For purposes of this Agreement, a "Change in Control" of the Company shall
be deemed to have occurred if (i) there shall be consummated (x) any
consolidation or merger of the Company in which the Company is not the
continuing or surviving corporation or pursuant to which shares of the Company's
Common Stock would be converted into cash, securities or other property, other
than a consolidation or merger of the Company in which the holders of the
Company's Common Stock immediately prior to the consolidation or merger have
substantially the same proportionate ownership of at least 65% of common stock
of the surviving corporation immediately after the consolidation or merger, or
(y) any sale, lease, exchange or other transfer (in one transaction or a series
of related transactions) of all, or substantially all, of the assets of the
Company other than to a corporation in which the holders of the Company's Common
Stock immediately prior to such transaction have substantially the same
proportionate ownership of at least 65% of the common stock of such corporation,
or (ii) the stockholders of the Company approve any plan or proposal for the
liquidation or dissolution of the Company, or (iii) any person (as such term is
used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the "Exchange Act")), shall become the beneficial owner (within the
meaning of Rule 13d-3 under the Exchange Act) of more than 35% of the Company's
outstanding shares of Common Stock, or (iv) during any period of two consecutive
years during the term of this Agreement, individuals who at the beginning of the
two (2) year period constituted the entire Board do not for any reason
constitute a majority thereof unless the election, or the nomination for
election by the Company's stockholders,

<PAGE>   2

of each new director was approved by a vote of at least five-eighths of the
directors then still in office who were directors at the beginning of the
period.

        3. Termination Following Change in Control.

           (a) Termination. If a Change in Control of the Company shall have
occurred while the Executive is still an employee of the Company, the Executive
shall be entitled to the compensation provided in Section 4 upon the subsequent
termination of the Executive's employment with the Company within twenty-four
(24) months of such Change in Control, whether requested by the Executive or by
the Company, unless such termination is as a result of (i) the Executive's
death; (ii) the Executive's Disability (as defined in Section (3)(b) below);
(iii) the Executive's Retirement (as defined in Section 3(c) below); (iv) the
Executive's termination by the Company for Cause (as defined in Section 3(d)
below); or (v) the Executive's decision to terminate employment other than for
Good Reason (as defined in Section 3(e) below).

           (b) Death or Disability. If, as a result of the Executive's
incapacity due to physical or mental illness, the Executive is absent from his
duties with the Company on a full-time basis for six (6) months, the Company may
elect to terminate the Executive for "Disability" by written notice to Executive
and without liability to Executive pursuant to this Agreement; provided,
however, that any such termination shall be effective only at the end of thirty
(30) days following the delivery of such notice and only if Executive fails to
return to the full-time performance of duties by the end of such 30-day notice
period. In addition, this Agreement shall terminate immediately in the event of
the death of the Executive occurring at any time during the Term hereof, and in
such event the Company shall have no liability by reason of such termination.

           (c) Retirement. The Executive shall be deemed terminated
automatically, without liability to Executive pursuant to this Agreement, upon
Retirement (as hereinafter defined) of Executive without liability to the
Company pursuant to this Agreement. "Retirement" as used in this Agreement shall
be deemed to occur upon the Executive's having reached such age as shall have
been fixed in any arrangement mutually established by the Company and the
Executive.

           (d) Cause. The Company may terminate the Executive, without liability
to the Executive pursuant to this Agreement, if the Executive's employment with
the Company is terminated for Cause. For purposes solely of determining whether
the Company may terminate the Executive pursuant to this Section 3(d) without
liability to the Executive, the Executive shall be deemed to have been
terminated for "Cause" only if Executive had engaged in fraud, misappropriation
or embezzlement, or any conviction or admission of a felony or other offense
involving dishonest or moral turpitude. Notwithstanding the foregoing, the
Executive shall not be deemed, for purposes of this Agreement, to have been
terminated for Cause unless and until there shall have been delivered to the
Executive a copy of a resolution duly adopted by the affirmative vote of not
less than five-eighths of the entire membership of the Company's Board at a
meeting of the Board called and held for that purpose (after reasonable notice
to the Executive and an opportunity for the Executive, together with the
Executive's counsel, to be heard before the Board), finding that in the good
faith opinion of the Board the Executive was guilty of conduct set forth in the
second sentence of this Section 3(d) and specifying the particulars thereof in
detail.

<PAGE>   3

           (e) Good Reason. The Executive may terminate the Executive's
employment for Good Reason at any time after a Change in Control during the
Term. For purposes of this Agreement, "Good Reason" shall mean any of the
following:

               (i) The Company has materially changed the Executive's position,
duties, responsibilities, status, or offices as in effect immediately prior to a
Change in Control of the Company, or has removed the Executive from or failed to
reelect the Executive to any of such positions;

               (ii) A reduction by the Company in the Executive's base salary as
in effect on the date hereof or as the same may be increased from time to time
during the Term;

               (iii) Any failure by the Company to continue in effect any
benefit plan or arrangement (including, without limitation, the Company's life
insurance, accident, disability and health insurance plans, 401(k) and bonus
plans, stock options, and all other similar plans which are from time to time
made generally available to senior executives/officers of the Company) and in
which the Executive is participating at the time of a Change in Control of the
Company, unless there are substituted therefore plans or arrangements providing
the Executive with essentially equivalent and no less favorable benefits
(hereinafter referred to as "Benefit Plans"), or the taking of any action by the
Company which would adversely affect the Executive's participation in or
materially reduce the Executive's benefits under any such Benefit Plan or
deprive the Executive of any material fringe benefit enjoyed by the Executive at
the time of a Change in Control of the Company;

               (iv) Any failure by the Company to continue in effect any
incentive plan or arrangement (including, without limitation, the Company's
plans enumerated in subparagraph (iii) above and similar incentive compensation
benefits) in which the Executive is participating at the time of a Change in
Control of the Company, unless there are substituted therefore plans or
arrangements providing the Executive with essentially equivalent and no less
favorable benefits (hereinafter referred to as "Incentive Plans"), or the taking
of any action by the Company which would adversely affect the Executive's
participation in any such Incentive Plan or reduce the Executive's potential
benefits under any such Incentive Plan, expressed as a percentage of his base
salary, by more than ten (10) percentage points in any fiscal year as compared
to the immediately preceding fiscal year;

               (v) Any failure by the Company to continue in effect any plan or
arrangement to receive securities of the Company (including, without limitation,
the Company's stock option and purchase plans and any other plan or arrangement
to receive and exercise stock options, stock appreciation rights, restricted
stock or grants thereof) in which the Executive is participating at the time of
a Change in Control of the Company, unless there are substituted therefor plans
or arrangements providing the Executive with essentially equivalent and no less
favorable (hereinafter referred to as "Securities Plans"), or the taking of any
action by the Company which would adversely affect the Executive's participation
in or materially reduce the Executive's benefits under any such Securities Plan;

               (vi) A relocation of the Company's principal executive offices to
a location outside of Orange County, California, or the Executive's relocation
to any place other than the location at which the Executive performed the
Executive's duties prior to a Change in Control of the Company, except for
required travel by the Executive on the Company's business to an extent

<PAGE>   4

substantially consistent with the Executive's business travel obligations during
the twelve (12) months immediately preceding a Change of Control of the Company;

               (vii) Any failure by the Company to provide the Executive with
the number of paid vacation days to which the Executive is entitled at the time
of a Change of Control of the Company;

               (viii) Any material breach by the Company of any provision of
this Agreement;

               (ix) Any failure by the Company to obtain the assumption of this
Agreement by any successor or assignee of the Company; or

               (x) Any purported termination of the Executive's employment that
is not effected pursuant to a Notice of Termination satisfying the requirements
of Section 3(f), and for purposes of this Agreement, no such purported
termination shall be effective.

           (f) Notice of Termination. Any termination of the Executive by the
Company for Disability pursuant to Section 3(b) or for Cause pursuant to Section
3(d) shall be communicated by a Notice of Termination. For purposes of this
Agreement, a "Notice of Termination" shall mean a written notice which shall
indicate those specific termination provisions in this Agreement relied upon and
which set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive's employment under the
provisions so indicated. For purposes of this Agreement, no such purported
termination by the Company shall be effective without such Notice of
Termination.

           (g) Date of Termination. "Date of Termination" shall mean (i) if the
Executive is terminated by the Company for Disability, thirty (30) days after
Notice of Termination is given to the Executive (provided that the Executive
shall not have returned to the performance of the Executive's duties on a
full-time basis during such 30-day period) or (ii) if the Executive is
terminated by the Company for any other reason, the date on which a Notice of
Termination is given; provided that if within thirty (30) days after any Notice
of Termination is given to the Executive by the Company the Executive notifies
the Company that a dispute exists concerning the termination, the Date of
Termination shall be the date the dispute is finally determined, whether by
mutual agreement by the parties or upon final judgment, order or decree of a
court of competent jurisdiction (the time for appeal therefrom having expired
and no appeal having been perfected).

        4. Severance Compensation upon Termination of Employment. Subject to
Section 4(e) below, if, within twenty-four (24) months following a Change in
Control, the Company shall terminate the Executive's employment other than
pursuant to Section 3(b), 3(c) or 3(d), or if the Executive terminates his
employment for Good Reason pursuant to Section 3(e), then:

<PAGE>   5

           (a) Severance Payment. The Company shall pay to the Executive as
severance pay a lump sum, in cash, in full on the fifth day following the Date
of Termination an amount equal to (i) the Executive's highest annual base salary
in effect during the 12-month period immediately preceding the Date of
Termination, and (ii) a lump sum payment of the Executive's incentive
compensation bonus that would otherwise be payable to Executive under the
Company's Bonus Plan then in effect for the year in which the Date of
Termination occurred assuming one hundred percent (100%) satisfaction of all
performance goals established under such Bonus Plan for the Executive,
multiplied by 2.0. The foregoing payment shall be in addition to any payments or
other compensation that would otherwise be payable to executives under any other
then existing Severance Plan of the Company. All payments hereunder shall be
made net of withholdings required by applicable federal, state or local laws.

           (b) Stock Options. All stock options not currently exercisable held
by the Executive will accelerate and become exercisable as of the Date of
Termination.

           (c) Restricted Stock. All restrictions on any restricted stock,
including without limitation any vesting requirements on any unvested stock,
held by the Executive as of the Date of Termination shall be removed.

           (d) Continuation of Benefits. The Company shall continue for a period
of one (1) year from the Date of Termination to provide the following benefits
to the Executive on the same terms as provided to the Executive on the Date of
Termination:

               (i) Participation in the Company's medical, dental and vision
plans;

               (ii) Long-term disability insurance; and

               (iii) Life Insurance.

Notwithstanding the foregoing, any benefits payable under this subsection 4(d)
shall terminate at such time as the Executive becomes eligible for similar
benefits from any subsequent employer; provided, however that at the end of the
period of coverage hereinabove provided for, the Executive shall have the option
to have assigned to the Executive at no cost and with no apportionment of
prepaid premiums, any assignable insurance owned by the Company and relating
specifically to the Executive.

           (e) Limitation. To the extent that any or all of the payments and
benefits provided for in this Agreement constitute "parachute payments" within
the meaning of Section 280G of the Internal Revenue Code (the "Code") and, but
for this Section 4(e), would be subject to the excise tax imposed by Section
4999 of the Code, then the aggregate amount of such payments and benefits shall
be reduced such that the present value thereof (as determined under the Code and
applicable regulations) is equal to 2.99 times the Executive's "base amount" (as
defined in the Code).

The determination of any reduction or increase of any payment or benefits under
this Section 4 pursuant to the foregoing provision shall be made by a nationally
recognized public accounting firm chosen by the Company in good faith, and such
determination shall be conclusive and binding on the Company and the Executive.

<PAGE>   6

        5. No Obligation to Mitigate Damages: No Effect on Other Contractual
Rights.

           (a) No Obligation to Mitigate. The Executive shall not be required to
mitigate damages or the amount of any payment provided for under this Agreement
by seeking other employment or otherwise, nor, except as set forth in Section
4(d), shall the amount of any payment provided for under this Agreement be
reduced by any compensation earned by the Executive as the result of employment
by another employer after the Date of Termination, or otherwise.

           (b) No Effect on Other Contractual Rights. The provisions of this
Agreement, and any payment provided for hereunder, shall not reduce any amounts
otherwise payable, or in any way diminish the Executive's existing rights, or
rights which would accrue solely as a result of the passage of time, under any
Benefit Plan, Incentive Plan or Securities Plan, employment agreement or other
contract, plan or arrangement.

        6. Successors and Assigns.

           (a) The Company. As used in this Agreement, "Company" shall mean the
Company as hereinbefore defined and any successor or assignee to its business
and/or assets as aforesaid which assumes the obligations of the Company under
this Agreement or which otherwise becomes bound by all of the terms and
provisions of this Agreement by operation of law. If at any time during the term
of this Agreement the Executive is employed by any corporation a majority of the
voting securities of which is then owned by the Company, such indirect
employment of the Executive by the Company shall not excuse the Company from
performing its obligations under this Agreement as if the Executive were
directly employed by the Company, and the Company agrees that it shall pay or
shall cause such employer to pay any amounts owed to the Executive pursuant to
Section 4 hereof, notwithstanding any such indirect employment relationship.

           (b) The Executive. This Agreement shall inure to the benefit of and
be enforceable by the Executive's personal and legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If the
Executive should die while any amounts are still payable to him hereunder, all
such amounts, unless otherwise provided herein, shall be paid in accordance with
the terms of this Agreement to the Executive's devisee, legatee, or other
designee or, if there be no such designee, to the Executive's estate.

        7. Notice. For purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered, one business day after being sent
for overnight delivery by a nationally recognized overnight courier or three
business days after being mailed by United States registered mail,
return-receipt requested, postage-prepaid, addressed as follows:

           If to the Company:

                 Vice President and Chief Financial Officer
                 Datum Inc.
                 9975 Toledo Way
                 Irvine, California 92618

<PAGE>   7

           If to the Executive:

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

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

or such other address as either party may have furnished to the other in writing
in accordance herewith, except that notices of change of address shall be
effective only upon receipt.

        8. Miscellaneous. No provisions of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing signed by the Executive and the Company. No waiver by either party
hereto at any time of any breach by the other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or at any prior or subsequent time. No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not set forth
expressly in this Agreement. This Agreement shall be governed by and construed
in accordance with the laws of the State of California.

        9. Validity. The invalidity or unenforceability of any provisions of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

        10. Counterparts. This 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 instrument.

        11. Arbitration, Legal Fees and Expenses. In the event of any
controversy, claim or dispute between the parties hereto arising out of or
relating to this Agreement, the matter shall be determined by arbitration, which
shall take place in Orange County, California, under the rules of the American
Arbitration Association; and a judgment upon such award may be entered in any
court having jurisdiction thereof. Any decision or award of such arbitrator
shall be final and binding upon the parties and shall not be appealable. The
parties hereby consent to the jurisdiction of such arbitrator and of any court
having jurisdiction to enter judgment upon and enforce any action taken by such
arbitrator. The Company shall pay all legal fees and expenses that the Executive
may incur as a result of the Company's contesting the validity, enforceability
or the executive's interpretation of, or determinations under, this Agreement.

        12. Confidentiality. The Executive shall retain in confidence any and
all confidential information known to the Executive concerning the Company and
its business so long as such information is not otherwise publicly disclosed.

        13. Entire Agreement. This Agreement contains all of the terms agreed
upon between the Executive and the Company with respect to the subject matter
hereof and replaces and supersedes all prior severance agreements between the
Executive and the Company. The Executive and the Company agree that no term,
provision or condition of this Agreement shall be held to be altered, amended,
changed or waived in any respect except as evidenced by written agreement of the
Executive and the Company.

<PAGE>   8

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

"COMPANY"                                      "EXECUTIVE"

DATUM, INC.

By: /s/ G. Tilton Gardner                      By: /s/ Robert J. Krist
Name:   G. Tilton Gardner                      Name    Robert J. Krist
Title:  Chairman of the Compensation           Title:  Vice President and Chief
        Committee                                      Financial Officer

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