Document:

<PAGE>

                                                                   Exhibit 10.42

                         LICENSED SYSTEM ADDENDUM No. 3

                                       to

                       MASTER TECHNOLOGY LICENSE AGREEMENT

                                     between

                              OKI DATA CORPORATION

                                       and

                     PEERLESS SYSTEMS IMAGING PRODUCTS, INC.

Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as *. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

                         LICENSED SYSTEM ADDENDUM NO. 3
                        EFFECTIVE AS OF August 25, 2000
                                     TO THE
                      MASTER TECHNOLOGY LICENSE AGREEMENT
                                    BETWEEN
                              OKI DATA CORPORATION
                                      AND
                    PEERLESS SYSTEMS IMAGING PRODUCTS, INC.

                        NAME OF AUTHORIZED OKI DEVICES:

                              Kanji:    MICROLINE2030N
                                        MICROLINE2020N
                                        MICROLINE2020

This Addendum sets forth the Authorized OKI Device and additional and different
terms and conditions particular to the Authorized OKI Devices described below
and shall be incorporated by reference into the Master Technology License
Agreement effective as of October 15, 1999, (the "MTLA") between Oki Data
Corporation ("OKI') and Peerless Systems Imaging Products, Inc. ("PSIP"). Such
different or additional terms are applicable only to the Authorized OKI Devices
described below and in no way alter the terms and conditions applicable to other
Authorized OKI Devices incorporated into the MTLA by addition of an Addendum
unless otherwise expressly stated in Schedule 2 to this Addendum. All the terms
used in this Addendum shall retain the same meaning as defined in the MTLA and
such definitions are incorporated herein by reference.

A. Authorized OKI Device:

(1) Software:

Revised Object (as defined in the MTLA) which is derived from the Licensed
Product as described in the Licensed Product Addendum No. 1 (Reference Port
3011) and No. 3 (Page Pipeline and Memory Manager).

The Software also includes the Adobe Type Connection Technology that allows
Adobe PostScript interpreters to synthesize replacement fonts from substitution
fonts for a predetermined set of fonts that are otherwise not resident in the
Authorized OKI Device.

(2) Font Programs:

For a further description of the Authorized OKI Device features, see Schedule 1,
Authorized OKI Device Functional Specification Summary, attached hereto.

B. Media for the Software as Distributed by OKI:

The Software will be distributed on OTP ROM or mask ROM.

--------------------------------------------------------------------------------
Final October 23, 2000            Page 1 of 17                      OKI__:PSIP__

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

C. QA Certification Schedule

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
Milestone Description                                               Schedule
----------------------------------------------------------------------------------------------
<S>  <C>                                                            <C>
(1)  OKI notifies PSIP of expected date for submission of the
     Final Release to PSIP QA.                                      *

----------------------------------------------------------------------------------------------
(2)  OKI provides to PSIP hard copy output, check list, test        *
     log and analysis of error(s) from the Adobe Certification
     Test Suite demonstrating that the Final Release has passed,
     the PPD file and two (2) production units (each consisting
     of a production level controller and production level
     engine) for Final Release testing.

----------------------------------------------------------------------------------------------
(3)  OKI provides to PSIP the Final Release (one set of Revised     *
     Object ROMs, including the Font Programs listed in Section
     G ("Roman Coded Font Programs") and Section H ("Font
     Programs for Japanese Typefaces"), for each of the one (1)
     production unit of MICROLINE2030N and MICROLINE2020N), the
     final 3011 Addendum specified in Section J
     ("Documentation") below and the PPD File.

----------------------------------------------------------------------------------------------
(4)  PSIP reviews OKI's hard copy output for approval, completes    *
     Final Release testing and reports all found problems to OKI
     and provides to OKI.

----------------------------------------------------------------------------------------------
(5)  PSIP determines acceptance of the Revised Object               *
     ("Software") as specified in the MTLA and obtain
     certification from Adobe for all of the Authorized OKI
     Devices described in this Licensed System Addendum No. 3.

</TABLE>

Adobe Certification. Following completion of testing and delivery to Adobe of
the test results, Adobe shall have * following to determine from its review of
such test results whether the Authorized OKI Device (a) conforms to the
applicable Adobe Certification Test Suite and any other tests or procedures
specified in the test plan, and (b) produces output meeting Adobe's quality
standards, as reasonably determined by Adobe from time to time.

Thereupon Adobe shall notify PSIP in writing either that Adobe certifies the
Authorized OKI Device or has elected to submit the Authorized OKI Device to
further testing and certification before it can be approved for First Commercial
Shipment of an Authorized

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.

--------------------------------------------------------------------------------
Final October 23, 2000             Page 2-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

OKI Device.

In the event Adobe has to run a full Quality Assurance testing cycle, OKI shall
supply Adobe with all of the necessary Loaned Equipment, maintenance services
and consumables required by Adobe to conduct such certification testing,
including the applicable Revised Object and any updated versions thereof in a
timely manner as the updated versions become available.

Upon Adobe's determining that the Authorized OKI Device does not conform to the
Adobe Certification Test Suite and any other tests or procedures specified in
the test plan, or that the test output fails to meet Adobe's quality standards,
Adobe shall provide to OKI a report identifying the failure. OKI shall use
reasonable efforts to promptly correct any nonconformity and resubmit the
Authorized OKI Device for re-testing. This process shall continue until Adobe
certifies the Authorized OKI Device. The test procedures described above are
free of charge to OKI. In the event that OKI requested that the Authorized OKI
Device be submitted to Adobe prior to PSIP's assessment of successful
certification, OKI shall be subject to all Adobe fees in addition to the charges
for such services agreed upon between OKI and PSIP.

OKI Notification. PSIP shall notify OKI when the Adobe Certification Test Suite
is successfully completed.

D. Definition of Development Schedule Terms:

(1) Final Release: For submission to PSIP QA for final certification testing in
    accordance with Section 2.3.3 (d) PSIP Testing and Adobe Certification of
    the MTLA. OKI shall ensure that the Final Release version of the Revised
    Object passes all tests in the Adobe Certification Test Suite prior to
    submission to PSIP. The Final Release shall have a Bug Score (as defined
    below) of *.

(2) Bug Score: The Bug Score of a given release at any given time is calculated
    according to the following formula:

                                        n

                                 Sigma (B i)/2/

                                      i = 1

Where B i = the severity of the ith open bug and n = the total number of open
bugs.

(3) Severity:

Severities of product bugs are defined as follows:

** means less than or equal to.

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.

--------------------------------------------------------------------------------
Final October 23, 2000             Page 3-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

Severity 4:    A bug that materially impairs functionality and for which there
               is no workaround.  Most severe; must be fixed.

Severity 3:    A bug that materially impairs functionality and for which there
               is no easy or convenient workaround. Fairly severe; must be
               fixed.

Severity 2:    A bug that has relatively low End User impact and for which a
               convenient workaround exists. Should be fixed in a subsequent
               release, if any.

Severity 1:    A minor bug or cosmetic problem. No need to fix.

Severity 0:    A specification change or request for an enhancement.

E. Loaned Equipment:

OKI will supply PSIP with one (1) production unit of the Authorized OKI Device
as specified in Section C above (QA Certification Schedule) including Revised
Object for Final Release testing. OKI will ensure that such Loaned Equipment is
maintained in functional working order at all times.

F. Applicable Royalties :

Royalty for Authorized OKI Device, Font Programs described herein shall apply to
all Authorized OKI Devices, Font Programs sold, leased or otherwise disposed of
by OKI or Affiliates to distributors, OEM Remarketer Customers or End Users.

Subject to Article 12.1 (Reporting) of the MTLA and payment terms as defined
herein, within forty-five (45) days after the end of calendar quarter, OKI shall
report total quantity of the Authorized OKI Devices distributed by or on behalf
of OKI or its Affiliates. OKI shall pay Per Unit License Fee for each Authorized
OKI Device pursuant to the payment provisions set out in Schedule 2 to this
Addendum no.3.

OKI shall be entitled to deduct from earned royalties which become due and
payable pursuant to this paragraph such amounts as OKI is required to withhold
therefrom pursuant to the applicable tax provisions of U.S.A. and Japan for the
payment for PSIP account, of applicable Japanese income tax therefor, provided,
however, that OKI will furnish PSIP with appropriate documentation evidencing
the payment of such taxes.

(1) Basis for Payments Hereunder.

(a) Currency

All royalty due to PSIP shall be paid in U.S. dollars.

(b) Exchange Rate Calculation for Royalties.

The exchange rate used to convert these Japanese List Prices into U.S. dollars
for the purpose of payment by OKI of royalties due hereunder shall be the
average of the mean telegraphic transfer rates quoted by the head office of
Tokyo Mitsubishi Bank at the close of banking on each of the first and last bank
business days of the relevant quarterly accounting period.

(c) List Price

--------------------------------------------------------------------------------
Final October 23, 2000             Page 4-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

All List Prices, as defined below, shall be established by OKI or Affiliates in
good faith, and shall be exclusive of amounts received for taxes, interest,
non-warranty maintenance and installation charges, insurance, shipping and
handling costs. The foregoing shall not be construed as fixing any sales price.

(i) List Price for Kanji Authorized OKI Device. The List Price for Kanji
Authorized OKI Device shall mean OKI's published list price in Japanese yen for
quantity one (1) of each model of Authorized OKI Device with Minimum
Configuration distributed to End Users in Japan.

(ii) List Price for Roman Authorized OKI Device The List Price for Roman
Authorized OKI Device shall mean OKI or Affiliates published list price in U.S.
dollars for quantity one (1) of each model of Authorized OKI Device with Minimum
Configuration distributed to End Users in U.S. The List Price for Roman
Authorized OKI Device shall apply for the purpose of royalty calculations for
distribution of all Authorized OKI Devices worldwide other than Japan.

(iii) In the event that the Roman Authorized OKI Device is not distributed in
the United States, then the published List Price of the Roman Authorized OKI
Device in a country other than the U.S. maybe used upon mutual agreement between
the parties.

(2) Minimum Configuration.

Minimum Configuration refers to an Authorized OKI Device that contains all of
the essential components required to supply the End User with the minimum level
of functionality specified for the applicable Authorized OKI Device.

For the purpose of royalty calculations to be made hereunder, the Minimum
Configuration of the Authorized OKI Device is defined as follows:

(a) MICROLINE2030N

* the Software and the Font Programs listed in Section G ("Extended Roman Font
Program Set"), H(1) ("Heisei Japanese Typeface") below.

(b) MICROLINE202ON

* the Software and the Font Programs listed in Section G ("Extended Roman Font
Program Set"), H(1) ("Heisei Japanese Typefaces") below.

(c) MICROLINE2020

* the Software and the Font Programs listed in Section G ("Extended Roman Font
Program Set"), H(1) ("Heisei Japanese Typefaces") below.

(3) Royalties

For each Authorized OKI Device described in this Addendum No.3 which is sold,
leased or otherwise disposed of or used by OKI or its Affiliates, the pricing
table as defined in Schedule 2 shall apply.

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.

--------------------------------------------------------------------------------
Final October 23, 2000             Page 5-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

G. Roman Coded Font Programs:

PSIP will provide the graphic characters specified in ISO 8859-1: 1987, Latin
alphabet No. 1 and ISO 8859-2: 1987, Latin alphabet No. 2, and symbol characters
where appropriate, for the Extended Roman Font Program Set specified in Exhibit
B to Attachment#1 to MTLA ("Extended Roman Font Program Set").

H. Font Programs for Japanese Typefaces:

(1) Heisei Japanese Typefaces: PSIP will provide the Adobe Standard Japanese
Character Set which includes JIS, Shift-JIS, and EUC encodings of the JIS X
0208-1983 and JIS X 0208-1990 Level 1 and Level 2 characters plus other
characters and encodings as defined in Adobe's Technical Note #5078
(Adobe-Japan1-2 Character Collection for CID-Keyed Fonts), dated December 4,
1994, for the Font Programs for Japanese Typefaces in CID-keyed font format
listed below. Generic characters listed therein are not typeface specific.

Identifying
-----------
Trademark                Character Collection     Trademark Owner
---------                ----------------------------------------
HeiseiMin-W3             Adobe-Japanl-2         Japan Standards Association
                                                Font Design Center

HeiseiKakuGo-W5          Adobe-Japan1-2         Japan Standards Association
                                                Font Design Center

I. Training

None.

J. Documentation:

PostScript Language Addendum prepared by OKI, describing the features specific
to the Authorized OKI Device and the means of accessing those features via the
PostScript language.

K. Designated Persons:

(1) Technically qualified OKI person to respond to information requested by
PSIP:

              Mr. Osamu Asada
              General Manager,
              Software Development Dept.
              Controller & Software Center
              Oki Data Corporation
              3-1 Futaba-cho, Takasaki-shi,
              Gunma 370-8585, Japan

--------------------------------------------------------------------------------
Final October 23, 2000             Page 6-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

              Tel: +81-27-328-6352
              Fax: +81-27-328-6164

(2) Technically qualified PSIP person to respond to information requested by
OKI:

              Mr. Ivan Tang
              Peerless Systems Imaging Products Inc.
              20415 72nd Ave. S., Suite 400,
              Kent, WA 98032 USA
              Tel: +1-253-395-8890 ex. 42
              Fax: +1-253-395-8896

L. ADDITIONAL LICENSE GRANTED.

(1) Object License. Subject to the provisions of the MTLA and this LSA #3 as
well as the payment of all applicable License Fees for the term of such license,
PSIP hereby grants to OKI the license provided for in Section 2.2 of the MTLA:

(2) Use in Derivative Work. The Licensed Products, or a Derivative Work thereof
created by PSIP, if it is to be incorporated in and distributed in a new product
other than the Authorized OKI Device, or if it is to be incorporated in and
distributed in an option thereto to the aforementioned Authorized OKI Device,
requires the development of a separate Licensed System Addendum. The Derivative
Work covered in this LSA #3 currently is limited to use in or with the
Authorized OKI Devices set out in this LSA #3.

If OKI hereinafter determines that the Licensed Products, or a Derivative Work
thereof, in whole or in part, is to be used in a new product other than the
Authorized OKI Devices, then PSIP and OKI would in good faith negotiate and sign
an additional LSA for the `future' product(s).

M. TERM AND TERMINATION. The term of this LSA #3 shall be coextensive with the
term of the Object Code License granted under the MTLA.

N. INDEMNIFICATION. OKI shall have the right, subject to the MTLA and this LSA
#3, to control its development, manufacturing and marketing efforts.
Accordingly, OKI shall, except to the extent that PSIP has indemnified OKI
pursuant to the MTLA, defend itself against and from any and all losses or
damages (including without limitation attorneys' fees and costs and all third
party claims or demands of any type whatsoever) arising out of, incurred in
connection with or relating to the OKI's development, manufacturing and
marketing of the Authorized OKI Device and indemnify and hold harmless PSIP
pursuant to the MTLA.

O. PROPRIETARY RIGHTS AND CONFIDENTIALITY

(1) PSIP's ownership of the Licensed Products and Derivative Works thereof are
defined in Section 4 of the MTLA.

(2) Rights not expressly granted to the OKI hereunder are reserved by the PSIP.
The right to manufacture and distribute such modified code (i.e., a Derivative
Work) other than for

--------------------------------------------------------------------------------
Final October 23, 2000             Page 7-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

the Authorized OKI Device requires a separate Licensed System Addendum.

Without limiting the foregoing, OKI shall own all title and proprietary rights
in any preexisting OKI intellectual property that OKI contributes to any such
Derivative Work.

(3) Without limiting any of OKI's obligations of confidentiality imposed
pursuant to the MTLA, OKI shall (i) specifically require any employee and
contractor of OKI to execute OKI's standard confidentiality and non-disclosure
agreement(s) content of such agreement to be subject to PSIP's approval, which
shall not be unreasonably withheld; (ii) notify PSIP promptly and in writing of
any circumstances of which OKI has knowledge regarding any possible use of or
access to any Confidential Information or any part thereof by any unauthorized
person or entity; and (iii) take and allow PSIP to take, at OKI's expense but
under PSIP's control, any legal or other action necessary to prevent or stop the
access to or use of the Confidential Information by an person or entity that has
gained access to the Confidential Information due to the fault or negligence of
License or any breach by OKI of the MTLA or this LSA #3.

(4) Any breach by OKI of any of its obligations under this Section O shall be
considered to be Default of the provisions of the MTLA.

P. AUDIT RIGHTS. PSIP shall have the right, not more frequently than once per
year upon one (1) business day's prior notice, to have one (1) of its employees
walk through and inspect any Authorized OKI Facility to determine whether OKI
employs adequate security procedures as required in MTLA. Such walking through
and inspection shall be (i) during OKI's regular business hours, (ii) arranged
so that, to the extent possible, OKI's regular business activities are minimally
disrupted and (iii) under the terms of an appropriate confidentiality agreement
executed by such an employee.

Q. AUTHORIZED OKI FACILITY: OKI may store and use the PSIP Materials (except for
the Revised Object and the Host Software) only at the following Authorized OKI
Facility:

     3-1, Futabu-cho, Takasaki-shi, Gunma 370-8585, Japan

When the Authorized OKI Facility above will be changed, OKI will request a
change and inform PSIP in writing of the substitute Authorized OKI Facility's
name and address at least thirty (30) days in advance of said change. Said
change shall require the written approval of PSIP, which approval by PSIP will
not be unreasonably withheld. When OKI stores the duplicated PSIP Materials at a
more than one Authorized OKI Facility, then any additional Authorized OKI
Facility shall be deemed to be an Authorized OKI Facility thirty (30) days after
OKI both (i) has notified PSIP in writing of the address of such additional
facility and PSIP has approved in writing, and (ii) OKI has paid PSIP's then
standard fee for adding an Authorized OKI Facility subject to the LSA.

--------------------------------------------------------------------------------
Final October 23, 2000             Page 8-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

IN WITNESS WHEREOF, OKI and PSIP have caused this Addendum No. 3 to be executed
by their duty authorized representatives.

PSIP:                                        OKI:

PEERLESS SYSTEMS IMAGING                     OKI DATA CORPORATION
PRODUCTS, INC.

By:        /s/ Ron Davis                     By:       /s/Masahiko Kawai
   ---------------------                        ------------------------
Printed Name: Ron Davis                      Printed Name: Masahiko

Title: Vice President Worldwide Sales        Tide: President & CEO

Date: October 30, 2000                       Date: October 26, 2000

--------------------------------------------------------------------------------
Final October 23, 2000             Page 9-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

                             SCHEDULE 1 TO LSA NO. 3
                 AUTHORIZED OKI DEVICE FUNCTIONAL SPECIFICATION
                                     SUMMARY

                                       for

                             Kanji:   MICROLINE2030N
                                      MICROLINE2020N
                                      MICROLINE2020

1. Introduction

This is the functional specification for the Oki MICROLINE2030N / MICROLINE2020N
/ MICROLINE2020 printers. This consists of a controller driving an Oki marking
engine and Software to implement Adobe's PostScript(R)3(TM) Software revised by
OKI for Authorized OKI Device.

2. Authorized OKI Device Summary

Controller Design:            *

Controller CPU:               *

ROM:                          *

Minimum RAM:                  *

Communications:               *

Resolution:                   *

Color/mono:                   *

Marking engines speeds:       *

                              *

Paper sizes:                  *

Paper sources:                *

Paper output:                 *

User Interface:               *
Other Emulations:             *

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.

--------------------------------------------------------------------------------
Final October 23, 2000             Page 10-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

Options:                      *

Typefaces:                    *

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.

--------------------------------------------------------------------------------
Final October 23, 2000             Page 11-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

                             SCHEDULE 2 TO LSA NO. 3

                                PRICING TABLE FOR

                             KANJI:   MICROLINE2030N
                                      MICROLINE2020N
                                      MICROLINE2020

Section #1 - Pricing for Authorized OKI Devices under LSA #3. Authorized OKI
Device licensed under this LSA #3 shall be subject to the following Per Unit
License Fee.

"Bundled Product" in means that every unit of the designated Authorized OKI
Devices shipped will contain Adobe PostScript(R)

"Unbundled Product" means every unit of the designated Authorized OKI Devices
may not contain Adobe PostScript(R). In the event that the Authorized OKI Device
is offered for sale with Adobe PostScript(R) both as an option and as a standard
feature (in this case as two versions of the same Authorized OKI Device), both
versions will be considered as "Unbundled Products".

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
Table #1 -- Basic Pricing Table
---------------------------------------------------------------------------------------------------------
Device        Kanji Morisawa       Kanji Heisei     Roman Mono             Roman Color     Kanji Color
Type          Fonts (DTP)          Fonts            Printers               Printers        Printers
                                   (Business)
---------------------------------------------------------------------------------------------------------
<S>           <C>                  <C>              <C>                    <C>             <C>
Licensed      Bundled -- *% of the List Price       Bundled -- U.S.        Bundled -- *% of the List
System        (minimum of U.S.*) plus               $* up to               Price (minimum of U.S. $*)
Royalty       fonts.                                an List Price          plus fonts.
                                                    of $*, above that *%
                                                    of List Price.
              Unbundled -- *% of the List           Unbundled --           Unbundled -- *% of the List
              Price (minimum of U.S. *)             *% of List             Price (minimum of U.S. $*)
              plus fonts.                           Price (minimum of      plus fonts.
                                                    U.S. $*)
---------------------------------------------------------------------------------------------------------
Kanji         $* per               Per Table #2     N/A                    N/A          $* per
              Morisawa Font        Heisei Font                                          Morisawa font.
              (* minimum)          Royalty Table                                        Heisei Fonts
                                                                                        per Table #2
                                                                                        Heisei Font
                                                                                        Royalty
                                                                                        Table.  *
                                                                                        minimum for
</TABLE>

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.

--------------------------------------------------------------------------------
Final October 23, 2000             Page 12-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

<TABLE>
---------------------------------------------------------------------------------------------------------
<S>           <C>                  <C>              <C>                    <C>             <C>
                                                                                        each, either
                                                                                        Morisawa Font
                                                                                        or Hesei Font
---------------------------------------------------------------------------------------------------------
Roman            *                      *                  *                   *              *
---------------------------------------------------------------------------------------------------------
</TABLE>

         -----------------------------------------------------------------
         Table #2 -- Heisei Font Royalty Table (2 font minimum)
         -----------------------------------------------------------------
         List Price of Authorized OKI         Price Per Font in U.S. $
         Device in Japanese Yen
         -----------------------------------------------------------------
         *                                     $*
         -----------------------------------------------------------------
         *                                     $*
         -----------------------------------------------------------------
         *                                     $*
         -----------------------------------------------------------------
         *                                     $*
         -----------------------------------------------------------------
         *                                     $*
         -----------------------------------------------------------------
         *                                     $*
         -----------------------------------------------------------------
         *                                     $*
         -----------------------------------------------------------------
         *                                     $*
         -----------------------------------------------------------------
         *                                     $*
         -----------------------------------------------------------------
         *                                     $*
         -----------------------------------------------------------------

***  Denotes greater than
**   Denotes less than

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.

--------------------------------------------------------------------------------
Final October 23, 2000             Page 13-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

      Table #3 - Pricing Table for Authorized OKI devices under this LSA #3

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
Authorized OKI Device      Device Type                      # of Morisawa fonts or Heisei
                                                            fonts
-------------------------------------------------------------------------------------------
<S>                        <C>                              <C>
MICROLINE2030N             Kanji Heisei Fonts (Business)    * Heisei fonts
-------------------------------------------------------------------------------------------
MICROLINE2020N             Kanji Heisei Fonts (Business)    * Heisei fonts
-------------------------------------------------------------------------------------------
MICROLINE2020              Kanji Heisei Fonts (Business)    * Heisei fonts
-------------------------------------------------------------------------------------------
</TABLE>

Section 2 - BLOCK LICENSE FEE OPTIONS.

2.0 Block License Fee Payment. PSIP has granted OKI an option of paying Block
License Fee for Licensed Products contained in the Authorized OKI Device in lieu
of the Per Unit License Fee as provided for in Section 1.1 of Schedule 2 to this
LSA #3. If OKI elects such an option, OKI shall pay non-refundable,
non-transferable and non-creditable payments of U.S. $* (*) due and payable as
of the Effective Date. This Block License Payment shall be paid on the following
dates:

     a) Payment of U.S$* (*) on or before *
     b) Payment of U.S.$* (*) on or before *
     c) Payment of U.S.$* (*) on of before *
     d) Payment of U.S.$* (*) on or before *

2.1 Block License Terms and Conditions. The terms and conditions of the Block
License Fee to OKI are as follows.

     a) The utilization of the Block License Fee shall apply to the distribution
        of all Authorized OKI Devices named in LSA #1, LSA #2 and this LSA #3.
        Specifically such Authorized OKI Devices include: Okipage 14i, Microline
        660PS, C7200, C7400, C9200, C9400, Microline 9055c, Microline 3050c,
        Microline 3020c, Microline 3010c, Microline 1055PS, Microline 1035PS,
        Microline 1032PS, Microline 2030N, Microline 2020N, and the Microline
        2020.

     b) For the Authorized OKI Devices named in LSA #1, LSA #2 and LSA #3, the
        following reduced Per Unit License Fee as set out in Section 2.2 below
        shall apply to each Authorized OKI Device. However, for each of the
        Authorized OKI Devices named in LSA #1 or LSA #2, either (i) the Per
        Unit License Fees as stated in LSA #1 or LSA #2, or (ii) the Per Unit
        License Fee that contained in Section 2.2 below shall solely at OKI's
        discretion apply.

     c) OKI will apply the above stated Per Unit License Fee to the actual
        number of Authorized OKI Devices shipped and will thus calculate the
        equivalent earned Per Unit License Fee.

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.

--------------------------------------------------------------------------------
Final October 23, 2000             Page 14-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

     d) The Per Unit License Fees stated below in Section 2.2 shall apply until
        the crediting of the equivalent earned Per Unit License Fee equals U.S.
        $* (*).

     e) Upon exhaustion of the U.S. $* Block License Fee, the following actions
        may take place:

        i)   If OKI has executed additional Block License Fee for new Authorized
             OKI Device in which the Authorized OKI Devices named herein are
             also in part or in total named, prior to the exhaustion of the U.S.
             $* Block License Fee, then the Per Unit License Fee for such named
             Authorized OKI Devices maybe offset against those additional Block
             Licenses.

        ii)  If OKI has not executed any such subsequent Block License, OKI at
             its sole discretion, may execute an additional Block License Fee
             for any Authorized OKI Device named in LSA#1, LSA#2 and this
             Addendum no.3 in an amount it determines under the same terms and
             conditions as enumerated herein.

        iii) OKI, at its sole discretion may decide not to purchase an
             additional Block License, in which case the Per Unit License Fee
             for each Authorize OKI Device would revert to the rate as defined
             in Section 1 herein. In regards to Authorized OKI Devices licensed
             in LSA #1 and LSA #2, the Per Unit License Fee will not exceed the
             Per Unit License Fee stated in each of the designated LSAs.

        iv)  Unless otherwise negotiated between the parties, all future Block
             License Fees granted pursuant to the terms of this Schedule 2 to
             LSA #3 are due and payable upon the date of further Block License
             and shall be paid within thirty (30) days therefrom.

     f) It is agreed between the parties, that OKI upon the grant of License for
        future Authorized OKI Devices, may request and PSIP will issue
        additional Block License Fee under the following terms and conditions:

        i)   Future Block License Fee will be issued in the denomination of U.S.
             $* when such Block License Fee are associated with Authorized OKI
             Devices licensed under new LSA.

        ii)  The Per Unit License Fee as provided for in Section 2.2 below shall
             apply to any Authorized OKI Device licensed under new LSA.

        iii) At OKI's sole discretion, such future Block License Fees may also
             name, and be used to offset incurred Per Unit License Fees for
             previously licensed Authorized OKI devices.

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.

--------------------------------------------------------------------------------
Final October 23, 2000             Page 15-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

     g) Any Block License Fee executed by both parties may, at OKI's sole
        discretion, be applied to any Authorized OKI Device(s) First Commercial
        Shipment of which occurs within ninety (90) days from the execution of
        Block License Fee.

2.2 License Fees for Authorized OKI Products authorized in LSA #1, LSA #2 or
this LSA #3 under this Block License. In the case of any and each Authorized OKI
Device named in LSA #1 or LSA #2, OKI may, at its sole discretion use either the
Per Unit License Fees enumerated in Schedule 2 of each LSA or below under the
Block License:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
                          Table #4 -- Basic Pricing, Table -- Block License
---------------------------------------------------------------------------------------------------------
Device Type   Kanji Mono        Kanji Heisei     Roman Mono         Roman Color       Kanji Color
              Morisawa          Fonts            Printers           Printers          Printers
              Fonts             (Business)
              (DTP)
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
<S>           <C>               <C>              <C>                <C>               <C>
Licensed      Bundled -- *% of the List Price          Bundled -- U.S.  Bundled -- *% of the List Price
System        (minimum of U.S.$*) plus fonts.          $*.              (minimum of U.S. $*) plus fonts.
Royalty                                                Unbundled --
              Unbundled -- *% of the List              *% of List       Unbundled -- *% of the List Price
              Price (minimum of U.S. $*)               Price            (minimum of U.S. $*) plus fonts.
              plus fonts.                              (minimum of
                                                       U.S. $*).
---------------------------------------------------------------------------------------------------------
Kanji         See Table #5       U.S. $*/per           N/A              N/A           Morisawa Fonts
              Morisawa Font      font                                                 per Table #5
              Royalty Table                                                           Morisawa Font
                                                                                      Royalty Table.
                                                                                      Heisei Fonts
                                                                                      U.S.$* each.
                                                                                      * fonts
                                                                                      minimum for
                                                                                      each, either
                                                                                      Morisawa Font
                                                                                      or Heisei Font.
---------------------------------------------------------------------------------------------------------
Roman         *                  *                    *                *              *
---------------------------------------------------------------------------------------------------------
</TABLE>

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.

--------------------------------------------------------------------------------
Final October 23, 2000             Page 16-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

           -------------------------------------------------------------
           Table #5 - Morisawa Font Royal Table (2 font minimum)
           -------------------------------------------------------------
           List Price of Authorized OKI        Price Per Font in U.S. $
           Device in Japanese Yen
           -------------------------------------------------------------
              *                                  $*
           -------------------------------------------------------------
              *                                  $*
           -------------------------------------------------------------
              *                                  $*
           -------------------------------------------------------------
              *                                  $*
           -------------------------------------------------------------
              *                                  $*
           -------------------------------------------------------------
              *                                  $*
           -------------------------------------------------------------
              *                                  $*
           -------------------------------------------------------------
              *                                  $*
           -------------------------------------------------------------
              *                                  $*
           -------------------------------------------------------------
              *                                  $*
           -------------------------------------------------------------

*** Denotes greater than
**  Denotes less than

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.

--------------------------------------------------------------------------------
Final October 23, 2000             Page 17-16

<PAGE>

OKI/PSIP LSA #3                                                     CONFIDENTIAL
--------------------------------------------------------------------------------

                     ATTACHMENT 1 TO SCHEDULE 2 TO LSA NO. 3
                     SAMPLE FORM OF BLOCK LICENSE AGREEMENT

Authorized OKI Device      :
                           (Model name)
Amount of Block License    :

Payment Schedule           :

///End

--------------------------------------------------------------------------------
Final October 23, 2000             Page 18-16<PAGE>

                                                                   Exhibit 10.43

                                  ATTACHMENT #1

                                       to

                               LICENSE ADDENDUM #3

                                     between

                              OKI DATA CORPORATION

                                       and

                     PEERLESS SYSTEMS IMAGING PRODUCTS, INC.

Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as *. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

<PAGE>

OKI / PSIP Attachment #1 (LSA#3)             CONFIDENTIAL
--------------------------------------------------------------------------------

                 ATTACHMENT # 1 THE LICENSED SYSTEM ADDENDUM #3
                              DATED AUGUST 25, 2000

This Attachment #1 dated March 1, 2001 ("Attachment #1") to Licensed System
Addendum #3 dated August 25, 2000 ("LSA #3") is entered into by and between Oki
Data Corporation, a Japanese corporation, with principal offices at 4-11-22,
Shibaura, Minato-ku, Tokyo 108-8551, Japan (hereinafter "OKI") and Peerless
Systems Imaging Products, Inc., a Washington corporation with principal offices
at 20415 72nd Ave. S., Suite 400, Kent, WA 98032 USA (hereinafter "PSIP"),
pursuant to the provisions of Section 18.2 of the Master Technology License
Agreement between those parties dated October 15, 1999 (hereinafter the
"Original Agreement"). This Attachment #1 is hereby made a part thereof, and the
terms and conditions of the Original Agreement and LSA #3 thereto are
incorporated by reference herein.

WHEREAS, OKI and PSIP now wish to issue an additional Block License against the
products licensed in Paragraph 2.1 a) of Schedule 2 to LSA #3;

NOW THEREFORE, OKI and PS IP hereto agree as follows effective March 1, 2001:

1. Subject to the payment of all fees herein, PSIP grants to OKI an additional
Block License under the same terms and conditions of Section 2 of Schedule 2 to
LSA #3 in the amount of * dollars (US $*).

2. In exchange for this additional Block License, OKI agrees to pay PSIP *
dollars (US $*) to be paid in two equal payments of * dollars ($*) each. Payment
#1 shall be due and payable within * (*) days of the execution of this
Attachment #1, or by *, whichever comes first. Payment #2 shall be due and
payable within * (*) days of the execution of this Attachment #1, or by *,
whichever comes first. PSIP agrees that such payments require the receipt by OKI
of original invoices and the required Tax Application Form for Income Tax
Convention with PSIP's signature. OKI will provide the required Tax Application
Form for Income Tax Convention and PSIP will sign as appropriate and return the
form to OKI. Payments made hereunder are non-cancelable, non-refundable and
non-transferable.

3. The Per Unit License Fees stated in Section 2.2 of Schedule 2 to LSA #3 shall
apply until the crediting of the equivalent earned Per Unit License Fee equals
U.S. $* (* dollars). The U.S. $* (* dollars) is the total of the original Block
License in LSA #3 of U.S. $* (* dollars) plus the Block License purchased in
this Attachment #1 of U.S. $* (* dollars).

4. Except as expressly provided herein, all of the terms of the Original
Agreement and LSA #3 shall continue in full force and effect.

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.

--------------------------------------------------------------------------------
(March 6, 2001)                      Page 1

<PAGE>

IN WITNESS WHEREOF, the parties have, by their duly authorized representatives,
executed this Attachment #1 as of the date first set forth below.

OKI DATA CORPORATION                        PEERLESS SYSTEMS IMAGING
                                            PRODUCES, INC.

By:                                         By:
/s/ Wataru Saito                            /s/ Ron Davis
---------------------------------------     ----------------------------------
Name: Wataru Saito                          Name: Ron Davis
Title: General Manager,                     Title: Vice President
       Non-Impact Printer Business
Date: March 15, 2001                        Date: March 19, 2001
///End

(June 27, 2001)                        2

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