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                                                                     Exhibit 4.4

                           CERTIFICATE OF DESIGNATIONS
                                       OF
                                PREFERRED STOCK
                                      OF
                               NX NETWORKS, INC.

                                TO BE DESIGNATED
                  SERIES C 8% CONVERTIBLE PREFERRED STOCK

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

                        PURSUANT TO SECTION 151(G) OF THE
             GENERAL CORPORATION LAW OF THE STATE OF DELAWARE

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

      The  undersigned DO HEREBY CERTIFY that the following  resolution was duly
adopted by the Board of Directors of Nx Networks,  Inc., a Delaware  corporation
(the "Corporation"),  at a meeting duly convened and held, at which a quorum was
present and acting throughout:

      "RESOLVED,  that  pursuant  to the  authority  conferred  on the  Board of
   Directors of the Corporation (the "Board of Directors") by the  Corporation's
   Certificate of  Incorporation,  the issuance of a series of preferred  stock,
   $.05 par value per share,  of the  Corporation  which shall consist of 15,400
   shares of  preferred  stock be, and the same hereby is,  authorized;  and the
   Chief  Executive  Officer  and  Secretary  or  Assistant   Secretary  of  the
   Corporation  be, and they hereby are,  authorized and directed to execute and
   file with the Secretary of State of the State of Delaware the  Certificate of
   Designations of Preferred Stock of the Corporation  fixing the  designations,
   powers,  preferences  and  rights  of the  shares  of  such  series,  and the
   qualifications,  limitations  or  restrictions  thereof  (in  addition to the
   designations,   powers,  preferences  and  rights,  and  the  qualifications,
   limitations  or  restrictions  thereof,  set  forth  in  the  Certificate  of
   Incorporation which may be applicable to the Corporation's  preferred stock),
   as follows:

      1. NUMBER OF SHARES;  DESIGNATION.  A total of 15,400  shares of preferred
   stock, par value $.05 per share, of the Corporation are hereby  designated as
   Series C 8%  Convertible  Preferred  Stock  (the  "Series").  The  number  of
   authorized  shares of the Series may be reduced by the Board of  Directors by
   the  filing  of a  certificate  pursuant  to the  provisions  of the  General
   Corporation  Law of the  State  of  Delaware  (the  "GCL")  stating  that the
   reduction has been so authorized.

      2. RANK.  The Series  shall,  with  respect to payment of  dividends,
   redemption payments and rights upon liquidation,  dissolution or winding
   up of the affairs of the Corporation, rank:

      (i)senior and prior to the Common Stock,  par value $.05 per share, of the
         Corporation  (the  "Common  Stock"),   and  any  additional  series  of
         preferred  stock  which may in the future be issued by the  Corporation

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         and are designated in the amendment to the Certificate of Incorporation
         or  the  certificate  of  designations   establishing  such  additional
         preferred  stock as  ranking  junior to the shares of the  Series.  Any
         shares of the  Corporation's  capital  stock  which  are  junior to the
         shares of the Series  with  respect to the  payment  of  dividends  are
         hereinafter  referred  to as "Junior  Dividend  Shares"  and any shares
         which  are  junior  to  the  shares  of  the  Series  with  respect  to
         redemption, payment and rights upon liquidation, dissolution or winding
         up of the affairs of the  Corporation  are  hereinafter  referred to as
         "Junior Liquidation Shares."

      (ii) PARRI PASSU with any additional  series of preferred  stock which may
         in the future be issued by the  Corporation  and are  designated in the
         amendment to the  Certificate of  Incorporation  or the  certificate of
         designations  establishing  such additional  preferred stock as ranking
         equal to the shares of the Series or which do not state they are Junior
         Dividend  Shares or Senior  Dividend  Shares (as  defined  below).  Any
         shares of the Corporation's capital stock which are equal to the shares
         of the Series with respect to the payment of dividends are  hereinafter
         referred to as "Parity  Dividend Shares" and any shares which are equal
         to the shares of the Series  with  respect to  redemption,  payment and
         rights upon  liquidation,  dissolution  or winding up of the affairs of
         the  Corporation  are  hereinafter  referred to as "Parity  Liquidation
         Shares." The shares of the Series shall rank PARI PASSU with the Series
         B Preferred Stock of the Corporation.

      (iii) Junior to any additional  series of preferred stock which may in the
         future be issued by the Corporation and are designated in the amendment
         to the Certificate of  Incorporation or the certificate of designations
         establishing  such additional  preferred stock as ranking senior to the
         shares of the Series.  Any shares of the  Corporation's  capital  stock
         which  are  senior to the  shares of the  Series  with  respect  to the
         payment of dividends are  hereinafter  referred to as "Senior  Dividend
         Shares"  and any  shares  which are  senior to the shares of the Series
         with  respect  to  redemption,  payment  and rights  upon  liquidation,
         dissolution  or  winding  up of  the  affairs  of the  Corporation  are
         hereinafter referred to as "Senior Liquidation Shares."

   The Corporation may not issue additional  shares of preferred stock which are
   not (a) Junior Stock (as defined in paragraph  3(a) below) or (b) both Parity
   Dividend  Shares and Parity  Liquidation  Shares  without  the consent of the
   holders of a majority of the outstanding shares of the Series.

      3.  DIVIDENDS.  (a) The  dividend  rate on shares of the  Series  shall be
   $13.00 per share per annum,  subject to  adjustment  as provided in paragraph
   3(d). Dividends on shares of the Series shall be fully cumulative,  accruing,
   without  interest,  from the date of original  issuance of the Series through
   the date of  redemption  or  conversion  thereof,  and  shall be  payable  in
   arrears,  when,  as and if  declared by the Board of  Directors  out of funds
   legally available for the payment of dividends,  on May 31 and November 30 of
   each  year,  commencing  May 31,  2001,  except  that  if such  date is not a
   business  day then the  dividend  shall be payable  on the first  immediately

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   succeeding  business day (as used herein,  the term "business day" shall mean
   any day except a Saturday,  Sunday or day on which banking  institutions  are
   legally  authorized  to close in Herndon,  Virginia)  (each such period being
   hereinafter  referred to as a "Dividend Period").  Dividends shall be payable
   in cash or Common Stock, at the discretion of the  Corporation.  The means of
   payment (cash or Common  Stock) of each  dividend  shall be designated by the
   Board of  Directors  at the time it fixes  the  record  date for  determining
   holders of shares of the Series  entitled to receive such  dividend  payment.
   Each dividend  shall be paid to the holders of record of shares of the Series
   as they appear on the stock  register of the  Corporation on the record date,
   not less than 10 nor more than 60 days preceding the payment date thereof, as
   shall be fixed by the Board of  Directors.  If any dividend is  designated as
   being  payable  in  Common  Stock,  the  amount  of  Common  Stock  issued in
   satisfaction  of such dividend  shall be determined by dividing the amount of
   the dividend  payable with respect to each share of the Series by the Current
   Market  Price (as defined in Section 10) for the Common Stock as of the close
   of business on the business day the Board of Directors  fixes the record date
   for  determining  the holders  entitled to receive such  dividend.  Dividends
   payable for each Dividend  Period shall be computed on the basis of a 360-day
   year of twelve  30-day  months and rounded to the nearest cent. No fractional
   share of Common Stock shall be issued with  respect to any  dividend  paid in
   Common  Stock.  The  aggregate  number of shares  issuable  to each holder of
   shares of the Series will be calculated,  and in lieu of issuing a fractional
   share the Corporation  shall pay the cash value of such  fractional  share as
   determined  by  reference  to the Current  Market  Price used for purposes of
   calculating  the  number  of  shares  of  Common  Stock to be  issued in such
   dividend. Dividends on account of arrearages for any past Dividend Period may
   be declared and paid at any time,  without  reference to any regular dividend
   payment  date,  to  holders  of record on such date,  not  exceeding  45 days
   preceding the payment date thereof, as may be fixed by the Board of Directors
   of  the  Corporation.  Dividends  shall  accrue  regardless  of  whether  the
   Corporation has earnings,  whether there are funds legally available therefor
   and  whether  declared.  No  interest  shall be payable  with  respect to any
   dividend  payment  that may be in  arrears.  Holders  of Shares of the Series
   called for  redemption  between the close of  business on a dividend  payment
   record date and the close of business on the  corresponding  dividend payment
   date shall,  in lieu of receiving such dividend on the dividend  payment date
   fixed  therefor,  receive  such  dividend  payment  on  the  date  fixed  for
   redemption  together with all other accrued and unpaid  dividends to the date
   fixed for  redemption.  The  holders of shares of the Series  shall be not be
   entitled to any dividends other than the cash dividends  provided for in this
   paragraph 3.

      (b) No  dividends,  except as described in the next  succeeding  sentence,
   shall be  declared  or paid or set apart for  payment on any Parity  Dividend
   Shares  for  any  period  unless  full  cumulative  dividends  have  been  or
   contemporaneously are declared and paid or declared and set aside for payment
   for all accrued  dividends with respect to the Series through the most recent
   Dividend  Period ending on or prior to the date of payment,  or setting apart
   for  payment,  of such  dividends  on such  Parity  Dividend  Shares.  Unless
   dividends  accrued  and  payable  but  unpaid on shares of the Series and any
   Parity  Dividend Shares at the time  outstanding  have been paid in full, all
   dividends  declared  by the  Corporation  upon shares of the Series or Parity
   Dividend  Shares  shall be declared PRO RATA with respect to all such shares,

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   so that the amounts of any dividends declared on shares of the Series and the
   Parity  Dividend  Shares shall in all cases bear to each other the same ratio
   that,  at the time of the  declaration,  all accrued but unpaid  dividends on
   shares of the Series and the other Parity Dividend Shares, respectively, bear
   to each other.

      (c) If at any time the  Corporation has failed to (x) pay or set apart for
   payment all accrued  dividends  on any shares of the Series  through the then
   most recent  Dividend  Period and (y) set apart for payment an amount in cash
   equal to the  scheduled  dividend  payments for each of the next two Dividend
   Periods,  the Corporation  shall not, and shall not permit any corporation or
   other entity directly or indirectly controlled by the Corporation to:

         (i)declare  or pay or set  aside  for  payment  any  dividend  or other
            distribution  on or with  respect  to the  Junior  Dividend  Shares,
            whether in cash,  securities,  obligations or otherwise  (other than
            dividends or  distributions  paid in shares of capital  stock of the
            Corporation  ranking  junior to shares of the Series  both as to the
            payment of dividends and as to rights in liquidation, dissolution or
            winding up of the affairs of the Corporation  ("Junior  Stock"),  or
            options,  warrants or rights to subscribe for or purchase  shares of
            Junior Stock); or

         (ii) redeem,  purchase or  otherwise  acquire,  or pay into,  set apart
            money or make  available for a sinking or other  analogous  fund for
            the redemption,  purchase or other acquisition of, any shares of the
            Series  (unless  all of the shares of the  Series  are  concurrently
            redeemed),  Parity Dividend  Shares,  Parity  Liquidation  Shares or
            Shares of Junior Stock for any  consideration  (except by conversion
            into or exchange for Junior Stock),

   unless,  in each such  case,  all  dividends  accrued on shares of the Series
   through the most recent  Dividend  Period and on any Parity  Dividend  Shares
   have been or contemporaneously are declared and paid in full.

      (c) Any reference to  "distribution"  contained in this  paragraph 3 shall
   not be  deemed  to  include  any  distribution  made in  connection  with any
   liquidation,  dissolution or winding up of the Corporation, whether voluntary
   or involuntary.

      (d) If the  Corporation  has not filed an amendment to its  Certificate of
   Incorporation  on or before March 31, 2001,  which amendment  provides for an
   increase in the number of  authorized  shares of Common Stock from 55 million
   shares to at least 65 million  shares,  then the  dividend  rate  provided in
   paragraph  3(a) will be  adjusted.  The  adjustment  will be to increase  the
   dividend rate by 1% per annum (or, if less, the maximum  permitted by law) on
   April 1, 2001 and on the first day of each calendar  month  thereafter  until
   the amendment is filed. Upon filing,  the dividend rate will return to $13.00
   per share of the Series per annum,  but such change will not affect dividends
   accrued  during the period  between  April 1, 2001 and the date the amendment
   was filed.

      4.  LIQUIDATION.  (a) The  liquidation  value  per  share of shares of the
   Series, in case of the voluntary or involuntary  liquidation,  dissolution or
   winding-up  of the  affairs of the  Corporation,  shall be $162.50 per share,
   plus an  amount  equal to the cash  value of  dividends  accrued  and  unpaid

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   thereon,  whether or not declared, to the payment date (such aggregate amount
   being hereinafter referred to as the "Liquidation Amount").

      (b) In the event of any voluntary or involuntary liquidation,  dissolution
   or  winding-up  of the  Corporation,  the holders of shares of the Series (i)
   shall not be entitled to receive the liquidation  value of the shares held by
   them until the liquidation value of all Senior  Liquidation Shares shall have
   been paid in full and (ii) shall be entitled to receive the liquidation value
   of such  shares  held  by them in  preference  to and in  priority  over  any
   distributions upon the Junior Liquidation Shares. Upon payment in full of the
   liquidation  value to which the holders of shares of the Series are entitled,
   the  holders  of shares of the Series  will not be  entitled  to any  further
   participation in any distribution of assets by the Corporation. If the assets
   of the Corporation  are not sufficient to pay in full the  liquidation  value
   payable to the  holders of shares of the  Series  and the  liquidation  value
   payable to the holders of any Parity  Liquidation  Shares, the holders of all
   such shares shall share ratably in such  distribution of assets in accordance
   with the amounts that would be payable on the  distribution if the amounts to
   which  the  holders  of  shares  of the  Series  and the  holders  of  Parity
   Liquidation Shares are entitled were paid in full.

      (c) Neither a consolidation  or merger of the Corporation with or into any
   other entity,  nor a merger of any other entity with or into the Corporation,
   nor a sale or  transfer  of all or any part of the  Corporation's  assets for
   cash or  securities  or other  property  shall be  considered a  liquidation,
   dissolution  or  winding-up  of the  Corporation  within the  meaning of this
   paragraph 4.

      (d) Written  notice of any  liquidation,  dissolution or winding up of the
   Corporation,  stating the payment  date or dates when and the place or places
   where the amounts distributable in such circumstances shall be payable, shall
   be given by first class mail, postage prepaid, not less than 30 days prior to
   any payment  date stated  therein,  to the holders of record of shares of the
   Series at their respective addresses as the same shall appear on the books of
   the transfer agent with respect to the Series.

      5. OPTIONAL REDEMPTION. (a) Shares of the Series will be redeemable at the
   option of the Corporation,  in whole or in part, from and after the time that
   (x) the Shares are convertible  into Common Stock pursuant to paragraph 7(a),
   and (y) the  Current  Market  Price for the  Common  Stock for a period of 10
   consecutive trading days equals or exceeds $5.00 per share and (z) the Common
   Stock  underlying  the  Shares  can be sold  by the  holder  thereof  without
   restriction on resale. The redemption price will be payable in cash and equal
   to $500.00 per share,  together with an amount equal to the dividends accrued
   and unpaid  thereon,  whether or not declared,  to the  redemption  date. The
   aggregate  payment to each holder of shares of the Series to be redeemed will
   be rounded to the nearest cent.  Notwithstanding  the foregoing,  if the date
   fixed for  redemption  occurs after a record date for a dividend and prior to
   the  corresponding  payment date, such dividend shall be paid, on the payment
   date and the amount payable with respect to each share of the Series redeemed
   shall not include the amount of the dividend to be so paid.

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      (b) Not less than 30 nor more than 60 days prior to the date fixed for any
   redemption of shares of the Series  pursuant to this paragraph 5, a notice of
   redemption  shall be mailed by first class  mail,  postage  prepaid,  to each
   holder of shares of the Series to be redeemed at such  holder's  last address
   as it appears on the books of the transfer agent for the Series.  Such notice
   shall state:  (i) that the Corporation has elected to redeem all or a portion
   of the shares of the Series, as specified in such notice, (ii) the redemption
   price, (iii) the redemption date, (iv) that, unless the Corporation  defaults
   in the payment of the redemption  price,  all shares of the Series called for
   redemption  shall cease to accrue  dividends  after the  redemption  date and
   shall cease to be outstanding  after such date and (v) any other  information
   required by applicable  law to be included  therein and any other  procedures
   that a holder of shares of the  Series  must  follow to receive  payment  for
   their redeemed  shares.  Neither failure to mail such notice,  nor any defect
   therein or in the mailing thereof,  to any particular holder shall affect the
   sufficiency of the notice or the validity of the  proceedings  for redemption
   with  respect to any other  holder.  Any notice  mailed in the manner  herein
   provided  shall be  conclusively  presumed to have been duly given whether or
   not the holder  receives the notice.  On or after the redemption  date,  each
   holder of shares of the Series to be redeemed  shall  present  and  surrender
   such holder's  certificate or certificates for such shares to the Corporation
   at the place designated in the redemption notice and thereupon the redemption
   price of the shares shall be paid to or on the order of the person whose name
   appears on such  certificate or certificates  as the owner thereof,  and each
   surrendered  certificate shall be canceled.  In case less than all the shares
   represented by any such certificate are redeemed,  a new certificate shall be
   issued to the holder representing the unredeemed shares of the Series.

      (c) If a notice of redemption  has been given pursuant to this paragraph 5
   and if, on or before the date fixed for  redemption,  the funds necessary for
   such redemption  shall have been set aside by the  Corporation,  separate and
   apart from its other funds,  in trust for the PRO RATA benefit of the holders
   of the shares of the Series so called for redemption,  then,  notwithstanding
   that  any  certificates  for  such  shares  have  not  been  surrendered  for
   cancellation,  on the redemption  date dividends shall cease to accrue on the
   shares of the  Series to be  redeemed,  and at the close of  business  on the
   redemption  date the  holders of such shares  shall cease to be  stockholders
   with respect to those shares, shall have no interest in or claims against the
   Corporation  by virtue  thereof and shall have no voting or other rights with
   respect  thereto,  except the right to receive the moneys  payable  upon such
   redemption,  without interest thereon,  upon surrender (and  endorsement,  if
   required by the Corporation) of their certificates,  and the shares evidenced
   thereby shall no longer be outstanding.  Subject to applicable  escheat laws,
   any moneys so set aside by the  Corporation  and  unclaimed at the end of two
   years from the redemption date shall revert to the  Corporation,  after which
   reversion the holders of such shares so called for redemption shall look only
   to the  Corporation  for the payment of the  redemption  price.  Any interest
   accrued on funds so deposited shall be paid to the  Corporation  from time to
   time.

      (d) If a notice of redemption has been given pursuant to this paragraph 5,
   and any holder of shares of the Series shall,  prior to the close of business
   on the date fixed for  redemption,  give  written  notice to the  Corporation
   pursuant to paragraph 7 below of the  conversion  of any or all of the shares
   to be redeemed  held by the  holder,  then such  redemption  shall not become

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   effective as to such shares to be converted and such conversion  shall become
   effective as provided in paragraph 7 below,  whereupon any funds deposited by
   the  Corporation,  or on its behalf,  with a payment agent or segregated  and
   held in trust by the  Corporation  for the  redemption  of such shares  shall
   (subject to any right of the holder of such  shares to receive  the  dividend
   payable  thereon as provided  in  paragraph  7 below)  immediately  upon such
   conversion  be returned to the  Corporation  or, if then held in trust by the
   Corporation, shall be discharged from the trust.

      (e) In every case of redemption of less than all of the outstanding shares
   of the Series  pursuant to this  paragraph 5, the shares to be redeemed shall
   be  selected  PRO  RATA or by lot or in such  other  manner  as the  Board of
   Directors may  determine,  as may be prescribed by resolution of the Board of
   Directors  of the  Corporation,  provided  that only  whole  shares  shall be
   selected for redemption. Notwithstanding the foregoing, the Corporation shall
   not redeem any of the shares of the Series at any time outstanding  until all
   dividends  accrued  and  in  arrears  upon  all  shares  of the  Series  then
   outstanding shall have been paid for all past dividend periods.

      6. MANDATORY  REDEMPTION.  The shares of the  Series are not  subject
   to mandatory redemption or sinking fund requirements.

      7.  CONVERSION.  (a)  Holders of shares of the Series will have the right,
   exercisable  at any  time  after  (x) an  amendment  to  the  Certificate  of
   Incorporation  of the Corporation is filed with the Secretary of State of the
   State of Delaware which  increases the number of authorized  shares of Common
   Stock from 55 million  shares to at least 65 million  shares and (y) prior to
   redemption of such shares (as described in paragraph 5), to convert shares of
   the Series into shares of Common Stock  (calculated as to each  conversion to
   the nearest 1/100th of a share) at the conversion price of $1.625, subject to
   adjustment as described below (the "Conversion  Price"). The number of shares
   of Common  Stock into which  each  share of the Series  shall be  convertible
   shall be determined by dividing $162.50,  subject to proportional  adjustment
   to reflect any split or  consolidation  of the Common  Stock or any  dividend
   payable  on the  Common  Stock in  additional  shares  of Common  Stock  (the
   "Conversion  Amount"), by the Conversion Price then in effect. In the case of
   shares of the Series called for redemption,  conversion rights will expire at
   the close of business on the business day next preceding the redemption date.
   Upon  conversion  of shares of the Series,  the  Corporation  will pay to the
   holder of the converted  shares an amount equal to the dividends  accrued but
   unpaid thereon  through the date the notice of conversion is delivered to the
   Corporation.  Such  payment  shall be made in cash,  or at the  option of the
   Corporation, in Common Stock valued at the Current Market Price of the Common
   Stock on the date the notice of conversion  is delivered to the  Corporation.
   Notwithstanding the foregoing, holders of record of shares of the Series on a
   record  date  fixed for the  payment of a dividend  on such  shares  shall be
   entitled to receive the dividend notwithstanding the conversion of the shares
   prior  to the  dividend  payment  date.  A  share  of the  Series  may not be
   converted in part.

      (b) In order to exercise the conversion right, the holder of each share of
   the Series to be converted shall surrender the certificate  representing such
   share,  duly  endorsed  or assigned to the  Corporation  or in blank,  at the
   office of the Corporation in Herndon,  Virginia (or such other address as the

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   Corporation  may designate) and shall give written notice to the  Corporation
   in the form set forth on the reverse of the stock certificates for the shares
   of the Series that such holder  elects to convert the shares  represented  by
   such certificate or a portion thereof.  Such notice shall also state the name
   or names (with  address) in which the  certificate  or  certificates  for the
   shares of Common Stock which shall be issuable upon such conversion  shall be
   issued,  and shall be accompanied by funds in an amount sufficient to pay any
   transfer or similar tax required by the  provisions of paragraph  7(e) below.
   Each share  surrendered for conversion  shall,  unless the shares issuable on
   conversion  are to be issued in the same name as the name in which such share
   of the  Series is  registered,  be duly  endorsed  by, or be  accompanied  by
   instruments of transfer (in each case, in form reasonably satisfactory to the
   Corporation),  duly executed by the holder or such  holder's duly  authorized
   attorney-in-fact.

      (c) As promptly as  practicable  after the surrender of  certificates  for
   shares of the Series for conversion and the receipt of such notice and funds,
   if any, as aforesaid,  the Corporation  shall issue and shall deliver to such
   holder,  or on such holder's written order, a certificate or certificates for
   the number of shares of Common Stock  issuable  upon the  conversion  of such
   shares of the Series in accordance  with the  provisions of this paragraph 7,
   and a check or cash in respect  of any  fractional  interest  in respect of a
   share of Common Stock arising upon such conversion,  as provided in paragraph
   7(d) below. Each conversion with respect to any shares of the Series shall be
   deemed to have been  effected  immediately  prior to the close of business on
   the date on which the  certificates  for shares of the Series shall have been
   surrendered  (accompanied  by the funds,  if any,  required by paragraph 7(e)
   below) and such notice and  assignment,  if any,  shall have been received by
   the Corporation as aforesaid,  and the person or persons  entitled to receive
   the  Common  Stock  issuable  upon such  conversion  shall be deemed  for all
   purposes to be the record  holder or holders of such  Common  Stock upon that
   date.

      (d) No fractional shares of Common Stock or scrip representing  fractional
   shares shall be issued upon conversion of shares of the Series.  If more than
   one share of the Series shall be  surrendered  for  conversion at one time by
   the same  holder,  the number of full shares of Common  Stock  issuable  upon
   conversion  thereof shall be computed on the basis of the aggregate number of
   shares of the  Series so  surrendered.  Instead  of any  fractional  share of
   Common Stock otherwise  issuable upon conversion of any shares of the Series,
   the Corporation shall pay a cash adjustment in respect to such fraction in an
   amount equal to the same  fraction of the Current  Market Price of the Common
   Stock at the close of business on the day of conversion.

      (e) If a holder converts shares of the Series,  the Corporation  shall pay
   any and all  documentary,  stamp or similar  issue or transfer tax payable in
   respect  of the issue or  delivery  of the shares of the Series (or any other
   securities  issued on account thereof  pursuant  hereto) or Common Stock upon
   the conversion;  PROVIDED,  HOWEVER, the Corporation shall not be required to
   pay any such tax that may be payable  because any such shares are issued in a
   name other than the name of the holder.

      (f)  From  and  after  the  date  an  amendment  to  the   Certificate  of
   Incorporation  of the Corporation is filed with the Secretary of State of the
   State of Delaware which  increases the number of authorized  shares of Common

                                      -8-
<PAGE>

   Stock from 55 million shares to at least 65 million  shares,  the Corporation
   shall reserve out of its authorized  but unissued  Common Stock or its Common
   Stock  held in  treasury  sufficient  shares  of Common  Stock to permit  the
   conversion of all of the  outstanding  shares of the Series.  The Corporation
   shall from time to time, in accordance with the GCL,  increase the authorized
   amount of its Common Stock if at any time the authorized amount of its Common
   Stock remaining  unissued shall not be sufficient to permit the conversion of
   all  shares of the  Series at the time  outstanding.  If any shares of Common
   Stock  required to be reserved for issuance upon  conversion of shares of the
   Series hereunder  require  registration  with or approval of any governmental
   authority under any federal or state law before the shares may be issued upon
   conversion,  the  Corporation  shall in good  faith and as  expeditiously  as
   possible  endeavor to cause the shares to be so registered  or approved.  All
   shares of Common Stock  delivered upon conversion of the shares of the Series
   will, upon delivery,  be duly  authorized and validly issued,  fully paid and
   nonassessable,  free from all taxes,  liens and charges  with  respect to the
   issue thereof.

      (g) The Conversion  Price shall be subject to adjustment from time to time
   as follows:

         (i)In the event that the  Corporation  shall (A) pay a dividend or make
            a  distribution,  in shares of Common Stock, on any class of Capital
            Stock of the Corporation or any subsidiary  which is not directly or
            indirectly  wholly owned by the Corporation,  (B) split or subdivide
            its outstanding  Common Stock into a greater number of shares or (C)
            combine  its  outstanding  Common  Stock  into a  smaller  number of
            shares,  then in each  such  case the  Conversion  Price  in  effect
            immediately  prior  thereto  shall be adjusted so that the holder of
            each share of the Series thereafter surrendered for conversion shall
            be  entitled  to receive  the number of shares of Common  Stock that
            such holder would have owned or have been  entitled to receive after
            the occurrence of any of the events  described  above had such share
            of the Series been converted  immediately prior to the occurrence of
            such event.  An adjustment  made pursuant to this paragraph  7(g)(i)
            shall become  effective  immediately  after the close of business on
            the record date in the case of a dividend or distribution (except as
            provided  in  paragraph  7(k)  below)  and  shall  become  effective
            immediately after the close of business on the effective date in the
            case of such subdivision,  split or combination, as the case may be.
            Any shares of Common Stock  issuable in payment of a dividend  shall
            be  deemed  to have been  issued  immediately  prior to the close of
            business  on the  record  date for such  dividend  for  purposes  of
            calculating  the number of outstanding  shares of Common Stock under
            clauses (ii) and (iii) below.

         (ii) In the  event  that  the  Corporation  shall  commit  to  issue or
            distribute  Common  Stock  or issue  rights,  warrants,  options  or
            convertible or exchangeable  securities entitling the holder thereof
            to subscribe  for or  purchase,  convert into or exchange for Common
            Stock,  in any such case at a price per share less than the  Current
            Market  Price  per  share  on the  earliest  of  (i)  the  date  the
            Corporation  shall enter into a firm  contract for such  issuance or
            distribution,   (ii)  the  record  date  for  the  determination  of
            stockholders entitled to receive any such rights, warrants,  options

                                      -9-
<PAGE>

            or convertible or exchangeable securities,  if applicable,  or (iii)
            the date of actual issuance or distribution of any such Common Stock
            or  rights,   warrants,   options  or  convertible  or  exchangeable
            securities  (provided  that the  issuance  of Common  Stock upon the
            exercise of rights, warrants, options or convertible or exchangeable
            securities  will not cause an adjustment in the Conversion  Price if
            no such adjustment  would have been required at the time such right,
            warrant, option or convertible or exchangeable security was issued),
            then  the  Conversion  Price  in  effect  immediately  prior to such
            earliest date shall be adjusted so that the  Conversion  Price shall
            equal the price  determined by multiplying  the Conversion  Price in
            effect immediately prior to such earliest date by the fraction:

            (x)whose  numerator  shall be the  number of shares of Common  Stock
               outstanding  on such  date plus the  number  of shares  which the
               aggregate offering price of the total number of shares so offered
               would  purchase at such Current  Market Price (such amount,  with
               respect to any such rights,  warrants,  options or convertible or
               exchangeable  securities,  determined  by  multiplying  the total
               number of shares  subject  thereto by the exercise  price of such
               rights,   warrants,   options  or  convertible  or   exchangeable
               securities  and  dividing  the product so obtained by the Current
               Market Price), and

            (y)whose  denominator  shall be the number of shares of Common Stock
               outstanding on such date plus the number of additional  shares of
               Common  Stock to be  issued or  distributed  or  receivable  upon
               exercise of any such right,  warrant,  option or  convertible  or
               exchangeable security.

            Such adjustment shall be made successively  whenever any such Common
            Stock,  rights,  warrants,  options or convertible  or  exchangeable
            securities are issued or  distributed.  In  determining  whether any
            rights,  warrants or options entitle the holders to subscribe for or
            purchase  shares of Common  Stock at less than such  Current  Market
            Price, and in determining the aggregate  offering price of shares of
            Common  Stock so issued or  distributed,  there  shall be taken into
            account  any  consideration  received  by the  Corporation  for such
            Common  Stock,   rights,   warrants,   options,  or  convertible  or
            exchangeable securities,  the value of such consideration,  if other
            than  cash,  to be  determined  by the  Board  of  Directors,  whose
            determination  shall be  conclusive  and  described in a certificate
            filed with the records of corporate  proceedings of the Corporation.
            If  any  right,  warrant,  option  or  convertible  or  exchangeable
            security to purchase or acquire Common Stock,  the issuance of which
            resulted in an adjustment in the  Conversion  Price pursuant to this
            subsection (b) shall expire and shall not have been  exercised,  the
            Conversion   Price  shall   immediately   upon  such  expiration  be
            recomputed to the  Conversion  Price which would have been in effect
            had the adjustment of the Conversion Price made upon the issuance of
            such right, warrant,  option or convertible or exchangeable security

                                      -10-
<PAGE>

            been made on the basis of  offering  for  subscription,  purchase or
            issuance,  as the case may be,  only of that  number  of  shares  of
            Common Stock actually  purchased or issued upon the actual  exercise
            of such  right,  warrant,  option  or  convertible  or  exchangeable
            securities.

         (iii) No adjustment in the  Conversion  Price shall be required  unless
            the adjustment  would require an increase or decrease of at least 1%
            in the Conversion Price then in effect; PROVIDED,  HOWEVER, that any
            adjustments  that  by  reason  of  this  paragraph  7(g)(i)  are not
            required to be made shall be carried  forward and taken into account
            in any subsequent adjustment.  All calculations under this paragraph
            7(g)(i)  shall be made to the nearest  cent or nearest  1/100th of a
            share.

         (iv)  Notwithstanding  anything  to the  contrary  set  forth  in  this
            paragraph 7(g), no adjustment  shall be made to the Conversion Price
            upon (A) the  issuance  of shares of Common  Stock  pursuant  to any
            compensation or incentive plan for officers, directors, employees or
            consultants of the  Corporation  which plan has been approved by the
            Compensation  Committee of the Board of Directors (or if there is no
            such committee  then serving,  by the majority vote of the Directors
            then serving who are not employees or officers of the Corporation, a
            5% or greater stockholder of the Corporation or an officer, employee
            or Affiliate or Associate  (as defined in paragraph 10 below) of any
            such 5% or greater  stockholder)  (unless the exercise price thereof
            is changed  after the date hereof  other than solely by operation of
            the  anti-dilution   provisions   thereof  or  by  the  Compensation
            Committee of the Board of Directors or, if applicable,  the Board of
            Directors  and,  if  required  by  law,  the   stockholders  of  the
            Corporation  as provided in this clause  (A)),  (B) the  issuance of
            shares  to  the  former  owners  of   AetherWorks   Corporation   in
            furtherance of the acquisition  agreement dated December 31, 1999 by
            and  among  AetherWorks  Corporation,  Nx  Networks,  Inc.  and  Nx1
            Acquisition  Corp.  or (C) the  issuance  of Common  Stock  upon the
            conversion or exercise of the options or warrants of the Corporation
            outstanding  on January 15, 2001,  unless the conversion or exercise
            price  thereof is changed  after January 15, 2001 (other than solely
            by operation of the anti-dilution provisions thereof).

         (v)The  Corporation  from time to time may reduce the Conversion  Price
            by any amount for any period of time in the  discretion of the Board
            of Directors. A voluntary reduction of the Conversion Price does not
            change  or adjust  the  conversion  price  otherwise  in effect  for
            purposes of this paragraph 7(g).

         (vii) In the event that, at any time as a result of an adjustment  made
            pursuant to paragraph 7(g)(i) through 7(g)(iii) above, the holder of
            any share of the Series thereafter  surrendered for conversion shall
            become entitled to receive any shares of the Corporation  other than
            shares of the  Common  Stock,  thereafter  the  number of such other
            shares so  receivable  upon  conversion  of any share of the  Series
            shall be subject to adjustment  from time to time in a manner and on
            terms as nearly  equivalent as practicable  to the  provisions  with
            respect to the Common Stock contained in paragraphs  7(g)(i) through

                                      -11-
<PAGE>

            7(g)(vi) above, and the other provisions of this paragraph 7(g)(vii)
            with  respect to the Common  Stock  shall apply on like terms to any
            such other shares.

      (h) In case of any  reclassification  of the Common Stock (other than in a
   transaction to which paragraph  7(g)(i)  applies),  any  consolidation of the
   Corporation  with, or merger of the Corporation  into, any other entity,  any
   merger of another entity into the Corporation  (other than a merger that does
   not result in any reclassification,  conversion,  exchange or cancellation of
   outstanding shares of Common Stock of the Corporation),  any sale or transfer
   of  all  or  substantially  all  of the  assets  of  the  Corporation  or any
   compulsory share exchange,  pursuant to which share exchange the Common Stock
   is  converted  into other  securities,  cash or other  property,  then lawful
   provision shall be made as part of the terms of such transaction  whereby the
   holder of each  share of the  Series  then  outstanding  shall have the right
   thereafter,  during the period  such share shall be  convertible,  to convert
   such  share  only  into the kind and  amount  of  securities,  cash and other
   property receivable upon the reclassification,  consolidation,  merger, sale,
   transfer  or share  exchange  by a holder  of the  number of shares of Common
   Stock of the  Corporation  into which a share of the  Series  might have been
   converted immediately prior to the reclassification,  consolidation,  merger,
   sale,  transfer or share  exchange  assuming that such holder of Common Stock
   failed to exercise  rights of  election,  if any, as to the kind or amount of
   securities,  cash or other  property  receivable  upon  consummation  of such
   transaction  subject  to  adjustment  as  provided  in  paragraph  7(g) above
   following the date of consummation of such transaction. As a condition to any
   such  transaction,  the Corporation or the person formed by the consolidation
   or resulting  from the merger or which acquires such assets or which acquires
   the  Corporation's  shares,  as the case may be, shall make provisions in its
   certificate or articles of  incorporation  or other  constituent  document to
   establish such right.  The certificate or articles of  incorporation or other
   constituent   document  shall  provide  for  adjustments  which,  for  events
   subsequent  to  the  effective  date  of  the   certificate  or  articles  of
   incorporation or other constituent document, shall be as nearly equivalent as
   may be practicable to the  adjustments  provided for in this paragraph 7. The
   provisions  of this  paragraph  7(h)  shall  similarly  apply  to  successive
   reclassifications,   consolidations,   mergers,  sales,  transfers  or  share
   exchanges.

      (i)   If:

         (i)      the  Corporation   shall  take  any  action  which  would
            require an  adjustment  in the  Conversion  Price  pursuant  to
            Section 7(g); or

         (ii) the Corporation shall authorize the granting to the holders of its
            Common Stock  generally  of rights or warrants to  subscribe  for or
            purchase any shares of any class or any other rights or warrants; or

                                     -12-
<PAGE>

         (iii) there shall be any reclassification or change of the Common Stock
            (other than a subdivision or combination of its  outstanding  Common
            Stock or a change  in par  value)  or any  consolidation,  merger or
            statutory share exchange to which the Corporation is a party and for
            which approval of any  stockholders  of the Corporation is required,
            or the sale or transfer of all or substantially all of the assets of
            the Corporation; or

         (iv)     there shall be a voluntary  or  involuntary  dissolution,
            liquidation or winding up of the Corporation;

   then, the Corporation shall cause to be filed with the transfer agent for the
   Series and shall cause to be mailed to the holders of shares of the Series at
   their  addresses as shown on the books of the transfer  agent for the Series,
   as promptly as possible,  but at least 30 days prior to the  applicable  date
   hereinafter  specified, a notice stating (A) the date on which a record is to
   be taken for the purpose of such dividend, distribution or granting of rights
   or  warrants,  or, if a record  is not to be taken,  the date as of which the
   holders  of  Common  Stock  of  record  to  be  entitled  to  such  dividend,
   distribution  or rights or warrants are to be  determined  or (B) the date on
   which such reclassification,  change, consolidation,  merger, statutory share
   exchange, sale, transfer, dissolution,  liquidation or winding up is expected
   to become  effective or occur,  and the date as of which it is expected  that
   holders of Common Stock of record shall be entitled to exchange  their shares
   of Common  Stock  for  securities  or other  property  deliverable  upon such
   reclassification,  change,  consolidation,  merger, statutory share exchange,
   sale, transfer, dissolution,  liquidation or winding up. Failure to give such
   notice or any defect therein shall not affect the legality or validity of the
   proceedings described in this paragraph 7(i).

      (j)  Whenever the  Conversion  Price is adjusted as herein  provided,  the
   Corporation  shall  promptly  file with the  transfer  agent for the Series a
   certificate  of an officer of the  Corporation  setting forth the  Conversion
   Price after the adjustment  and setting forth a brief  statement of the facts
   requiring such adjustment and a computation  thereof.  The Corporation  shall
   promptly cause a notice of the adjusted Conversion Price to be mailed to each
   registered holder of shares of the Series.

      (k) In any case in which paragraph 7(g) provides that an adjustment  shall
   become  effective  immediately  after a record date for an event and the date
   fixed for such adjustment pursuant to paragraph 7(g) occurs after such record
   date but before the occurrence of such event, the Corporation may defer until
   the actual  occurrence  of such event (i) issuing to the holder of any shares
   of the Series  converted  after such record date and before the occurrence of
   such  event  the  additional  shares  of  Common  Stock  issuable  upon  such
   conversion by reason of the adjustment  required by such event over and above
   the Common Stock issuable upon such  conversion  before giving effect to such
   adjustment  and (ii)  paying to such holder any amount in cash in lieu of any
   fraction pursuant to paragraph 7(d).

      (l) In case the  Corporation  shall take any action  affecting  the Common
   Stock, other than actions described in this paragraph 7, which in the opinion
   of the Board of Directors would  materially  adversely  affect the conversion
   right of the holders of the shares of the Series, the Conversion Price may be

                                      -13-
<PAGE>

   adjusted, to the extent permitted by law, in such manner, if any, and at such
   time,  as the  Board  of  Directors  may  determine  to be  equitable  in the
   circumstances;  PROVIDED,  HOWEVER,  that in no  event  shall  the  Board  of
   Directors be required to take any such action.

          (m) The Corporation will endeavor to list the shares of Common Stock
     required to be delivered upon conversion of shares of the Series, prior to
     delivery, upon each national securities exchange, the Nasdaq Stock Market
     or any similar system of automated dissemination of securities prices, if
     any, upon which the Common Stock is listed at the time of delivery.

          (n) In the event the Corporation has not filed an amendment to its
     Certificate of Incorporation increasing its authorized number of shares of
     Common Stock from 55 million shares to at least 65 million shares on or
     before September 30, 2001, then the Corporation will conduct a repurchase
     offer to redeem the shares of the Series. The repurchase price will equal
     the Liquidation Amount plus an amount equal to 110% of the difference
     between the Conversion Price then in effect and the Current Market Price of
     the Common Stock on the date the offer commences. The repurchase offer will
     be held open by the Corporation for at least 30 days.

      8.  STATUS  OF  SHARES.  All  shares  of the  Series  that are at any time
   redeemed or converted  pursuant to  paragraph 5 above,  and all shares of the
   Series that are otherwise  reacquired  by the  Corporation  and  subsequently
   canceled by the Board of Directors,  shall have the status of authorized  but
   unissued shares of preferred stock, without designation as to series, subject
   to  reissuance  by the Board of  Directors as shares of any one or more other
   series.

      9. VOTING RIGHTS.  Except as otherwise  required by law, holders of shares
   of the Series shall have no vote with respect to any matter  submitted to the
   stockholders of the  Corporation for vote or consent.  In connection with any
   right to vote or give consent  provided by law,  each holder of shares of the
   Series will have one vote for each share held.

       10.  CERTAIN   DEFINITIONS.   As  used  in  this  Certificate,   the
   following terms shall have the following respective meanings:

      "AFFILIATE"  of any  specified  person means any other person  directly or
   indirectly  controlling  or controlled  by or under common  control with such
   specified person.  For purposes of this definition,  "control" when used with
   respect to any person means the power to direct the  management  and policies
   of such person,  directly or  indirectly,  whether  through the  ownership of
   voting securities or otherwise;  and the term  "controlling" and "controlled"
   having meanings correlative to the foregoing.

                                      -14-
<PAGE>

       An  "ASSOCIATE" of a person means (A) any  corporation  or  organization,
   other than the Corporation or any subsidiary of the Corporation, of which the
   person is an officer or partner or is, directly or indirectly, the beneficial
   owner of 10% or more of any  class of  equity  securities;  (B) any  trust or
   estate in which the person has a  substantial  beneficial  interest  or as to
   which the person serves as trustee or in a similar  fiduciary  capacity;  and
   (C) any relative or spouse of the person, or any relative of the spouse,  who
   has the same home as the person or who is a director or officer of the person
   or any of its parents or subsidiaries.

      "CAPITAL  STOCK"  of any  person  or  entity  means  any and  all  shares,
   interests,  rights to purchase,  warrants,  options,  participations or other
   equivalents  of or interests  in the common stock or preferred  stock of such
   person or entity, including,  without limitation,  partnership and membership
   interests.

      "CURRENT MARKET PRICE" means, when used with respect to any security as of
   any date,  the last bid price regular way of such security as reported on the
   Nasdaq  National  Market for such date, or, if such security is not listed or
   admitted to trading on the Nasdaq National Market,  as reported on the Nasdaq
   SmallCap  Market  for such  date,  or, in case such  security  is listed on a
   national  securities exchange other than Nasdaq, the last sales price of such
   security on such date as reported for consolidated  transactions with respect
   to securities listed on the principal national  securities  exchange on which
   such  security is listed or  admitted to trading or, if such  security is not
   listed or  admitted  to trading on the Nasdaq  Stock  Market or any  national
   securities exchange, the average of the high bid and low asked prices of such
   security  on such date in the  over-the-counter  market,  as  reported by the
   National Association of Securities Dealers,  Inc. Automated Quotations System
   or such other  system  then in use or, if such  security is not quoted by any
   such  organization,  the average of the closing bid and asked  prices of such
   security as of such date furnished by a New York Stock  Exchange  member firm
   selected by the  Corporation,  or if such  security is not quoted by any such
   organization  and no such  New York  Stock  Exchange  member  firm is able to
   provide such prices, such price as is determined by the Independent Directors
   in good faith.

      "INDEPENDENT  DIRECTORS"  means  directors  that (i) are not 5% or greater
   stockholders of the Corporation or the designee of any such stockholder; (ii)
   are not officers or employees of the Corporation,  any of its subsidiaries or
   of a  stockholder  referred  to above in clause  (i);  (iii) are not  Related
   Persons; and (iv) do not have relationships that, in the opinion of the Board
   of Directors,  would interfere with their exercise of independent judgment in
   carrying out the responsibilities of the directors.

      "RELATED  PERSON" means an individual  related to an officer,  director or
   employee of the  Corporation  or any of its  Affiliates  which relation is by
   blood, marriage or adoption and not more remote than first cousin.

                                      -15-
<PAGE>

      IN WITNESS WHEREOF, the Corporation has caused this Certificate to be duly
   executed  on its  behalf  by its  undersigned  Chief  Executive  Officer  and
   attested to by its Secretary this 23rd day of January, 2001.

                                    __________________________________
                                    John E. DuBois
                                    Chief Executive Officer

   ATTEST:

___________________________
      Jay R. Schifferli
      Secretary

                                      -16-<PAGE>
                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

This Employment Agreement (the "AGREEMENT"),  effective as of December __, 2000,
is made  and  entered  by and  between  JOHN  DUBOIS  (the  "EXECUTIVE")  and NX
NETWORKS, INC., a Delaware corporation (the "COMPANY").

                              W I T N E S S E T H:

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

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

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

         1. TERM OF EMPLOYMENT

         The term of the  Executive's  employment  under  this  Agreement  shall
commence on January 3rd, 2001 and end on the third anniversary of such date (the
"Term of  Employment").  If the Company or the Executive does not deliver to the
other  party at least 60 days prior to the end of the three  year term,  written
notice  that the Term of  Employment  shall end on January 3, 2004,  the Term of
Employment shall  automatically  continue for an additional  one-year period. At
the end of such one year  period,  the Term of  Employment  shall  automatically
continue for  successive one year terms unless either party delivers at least 60
days prior written  notice that the Term of  Employment  shall end at the end of
such one-year renewal period.

         2. DUTIES

         (a) During the Term of  Employment,  the  Executive  shall serve as the
Chief  Executive  Officer and, as provided in Section 2(b) below,  a Director of
the Company with such authority and duties as are generally associated with such
position  and as may be  assigned  to him  from  time to time  by the  Board  of
Directors of the Company that are consistent with such authority and duties. The
Executive shall report to the Chairman of the Board of Directors of the Company,
or  someone  or some body  within  the Board if there is no  Chairman  or if the
Executive becomes the Chairman.

         (b) During the Term of  Employment  and except as  provided  in Section
2(c), the Executive  shall devote his full business time and best efforts to the
business and affairs of the Company.  The Executive  agrees to continue to serve
during the Term of Employment as a Director and a member of any committee of the
Board of  Directors  of the Company  that the Board may  designate.  The Company
agrees to use its commercially reasonable best efforts to cause the Executive to
be elected and continued in office throughout the Term of Employment as a member
of the Board of Directors of the Company and shall include him in the management
slate for election as a Director of the Company at every  stockholders'  meeting
of the Company at which his term as a Director would otherwise expire.

                                      -1-
<PAGE>

         (c) Anything  herein to the contrary  notwithstanding,  nothing in this
Agreement  shall  preclude  the  Executive  from (i)  serving  on the  boards of
directors of other  corporations  or the boards of a reasonable  number of trade
associations and/or charitable organizations,  in each case subject to the prior
approval  of the  Board of  Directors  of the  Company  (not to be  unreasonably
withheld),  (ii) engaging in  charitable  activities  and community  affairs and
(iii)  managing  his  personal  investments  and  affairs,  provided  that  such
activities  do not  interfere  with the  proper  performance  of his  duties and
responsibilities under this Agreement. The Company agrees that the Executive may
continue to serve in all board  positions  disclosed to the Company prior to the
date of this Agreement.

         3. NO CONFLICT OF INTEREST

         The parties  certify that the  Executive has advised the Company of his
professional  and  business  relationship  with Keir  Kleinknecht.  The business
relationship  is that the  Executive  was a member of the Board of Advisors  for
E-Goo  Venture  Fund,  of which Mr.  Kleinknecht  was a managing  partner.  That
business  relationship  is  expected  to  continue  in some  form.  The  Company
acknowledges  that this  relationship does not create a conflict of interest for
the Executive or diminish in any respect the Executive's  capacity to enter this
Agreement or to perform the job and duties described in this Agreement.

         4. COMPENSATION AND RELATED MATTERS

         (a) SALARY. During the Term of Employment,  the Executive shall receive
a base salary (the "Base  Salary") at the rate of $260,000 per annum.  Such Base
Salary shall be payable  semi-monthly in accordance with the Company's  policies
in  effect  from  time to time.  The  Board of  Directors  from time to time may
increase, but not decrease, the Base Salary.

         (b) BONUS.  The  Executive  shall be eligible for a quarterly  bonus in
such amount as the Board of Directors may designate. Payment of any annual bonus
shall be made at the same time that other senior-level  executives receive their
bonus but in no event later than  fifteen  days after the close of the period to
which such bonus relates.

         (c)  STOCK  OPTIONS.  To  induce  the  Executive  to  enter  into  this
Agreement, the Executive is hereby granted an option (the "Stock Option") by the
Company to purchase  shares of common stock,  par value $0.05 per share,  of the
Company  (the "Common  Stock").  The Stock  Option  shall be  memorialized  in a
separate stock option agreement,  dated the date hereof, between the Company and
the Executive. The Stock Options will be in two tranches.

The first  tranche of the Stock  Option will be for  2,000,000  shares of Common
Stock,  and will have an exercise  price per share  equal to the closing  market
price per share of the Common Stock on the date of this Agreement.  This tranche
of the Stock  Option  shall vest over time as follows  and be subject to earlier
vesting as described below.

Time vesting:
500,000  shares  subject to the Stock Option shall vest on January 3, 2001,  and
250,000  shares  subject  to the Stock  Option  shall  vest  thereafter  on each
six-month anniversary of such date.

                                      -2-
<PAGE>

Accelerated  vesting of the number of shares  indicated  below,  or such  lesser
amount  as  remains  unvested  at the time of the  acceleration  event,  for any
one-year period will occur as follows:

NO. SHARES           VESTING EVENT

250,000     Common Stock trades at $5/share for 10 consecutive trading days
250,000     Common Stock trades at $8/share for 10 consecutive trading days
250,000     Common Stock trades at $12/share for 10 consecutive trading days

The price points designated above refer to the last reported sales price for the
trading day.

The second  tranche of the Stock Option will be for  1,200,000  shares of Common
Stock and will have an exercise  price equal to the last reported sales price of
the Common Stock on the date of this  Agreement.  Vesting of this tranche of the
Stock Option will occur in equal quarterly  increments over a three-year  period
commencing on January 3, 2001, e.g. 100,000 shares vest quarterly.

As soon as  reasonably  practicable,  the Company  shall use its best efforts to
register the shares  underlying  the Stock  Options on  Securities  and Exchange
Commission Form S-8,  including the registration of any shares  underlying Stock
Options vested prior to the date of filing such Form S-8.

Furthermore,  the Company will permit the  Executive to exercise  some or all of
his Stock Options  described in this Section 4 prior to the full vesting of such
Stock  Options.  If  requested  by the  Executive,  the  Company  will  loan the
Executive  an amount  equal to the total  purchase  price for the Stock  Options
included  in this  Section 4 which the  Executive  elects to  exercise  prior to
vesting.  Any such loan shall be a full  recourse  loan.  In addition,  the loan
shall be secured by the shares of Common  Stock of the Company  purchased by the
Executive  with the proceeds  thereof.  Each such loan will bear interest at the
market rate of interest as determined by the Company's independent  accountants,
or the maximum rate permissible by law (which under the laws of the Commonwealth
of Virginia  deemed to be the laws relating to permissible  rates of interest on
commercial loans),  whichever is less, and shall become due and payable no later
than  January 3, 2004.  The stock shall be held in escrow by the  Company  until
vesting  occurs at which time the  Executive  may chose to receive  the stock in
exchange for  repayment of the pro-rata  amount of the loan.  The  Executive may
elect to file an election  under  Section  83(b) of the Code within  thirty (30)
days of the date of purchase of the shares.

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

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

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

         (g) PAYMENT UPON CHANGE OF CONTROL. In the event of a Change of Control
of the Company,  as defined in the Company's 1999 Long Term Incentive  Plan, the
Company shall issue to the Executive 400,000 shares of Common Stock,  subject to
proportionate  adjustment  in the case of dividends  paid on the Common Stock in
additional  shares  of Common  Stock,  and stock  dividends  and  consolidations
involving  the  Common  Stock  and  equitable  adjustment  in  the  event  of  a
reclassification or other reorganization  affecting the Common Stock (or, if the
Common Stock was modified, exchanged or converted in connection with such Change
of Control,  the cash,  securities or other  property  that such 400,000  shares
would  represent at the time of the Change of Control if they had been modified,
exchanged or converted in connection  with such Change of Control).  Such Common
Stock will be registered by the Company (or its  successor)  with the Securities
and  Exchange  Commission  at the time of, or as soon as  possible  after,  such
issuance.

         (h) CASH PAYMENT IN CERTAIN CIRCUMSTANCES. In the event that the equity
compensation  to the Executive set forth in this  Agreement is determined by the
Company to require  stockholder  approval  under  applicable  regulations of the
Nasdaq Stock Market,  then the Stock Options  provided herein will be reduced to
the  largest  number of Stock  Options  that  could be  issued to the  Executive
without  such  stockholder  approval.  In lieu of the  Stock  Options  that  are
eliminated  as a result of this  provision,  the  Company  will treat such Stock
Options as stock  appreciation  rights  having an  exercise  price  equal to the
exercise  price of such Stock Options and, upon vesting and exercise  thereof by
the  Executive,  pay to the  Executive,  in cash,  the  difference  between  the
exercise price of such stock appreciation rights and the closing market price of
the Common Stock on the date the Executive  exercises such rights.  If any Stock
Options are  converted  into stock  appreciation  rights,  the Executive and the
Company will enter into an agreement  delineating such rights,  which will be as
comparable  as  practicable  to the rights and  responsibilities  of the parties
under  the  stock  option  agreement  between  the  Executive  and the  Company.
Notwithstanding  the foregoing,  if the equity compensation to the Executive set
forth in this  Agreement  is  determined  by the Company to require  stockholder
approval  under  applicable  regulations  of the Nasdaq Stock  Market,  and such
approval  can be obtained at that time or the grant of such equity  compensation
can be  ratified  by  stockholder  approval,  then in lieu of  converting  Stock
Options into stock appreciation rights the Company will undertake its reasonable
efforts to obtain such stockholder approval in order that the Stock Options will
not be affected.

                                   -4-
<PAGE>

              (i)   DEDUCTIONS   AND   WITHHOLDINGS   TAX  GROSS-UP  IN  CERTAIN
CIRCUMSTANCES.

              (i) All amounts payable or which become payable hereunder shall be
subject to all deductions and withholding required by law.

              (ii)  Notwithstanding  the subsection (h)(i) above, if as a result
of a Change of Control the Executive becomes subject to Section 280G of the Code
(or any  successor  provision)  which  imposes  an excise  tax in respect of the
issuance of any payment to the Executive under this Agreement,  then the Company
shall pay to the  Executive,  in cash at the time of such Change of  Control,  a
"tax gross-up" equal to the amount of the  Executive's  tax liability  resulting
from such  excise  tax  (including  any tax on the  amount so paid to cover this
obligation  calculated  at the highest  marginal  federal  and state  income tax
rates).

              (iii) The accounting firm engaged by the Company for general audit
purposes  as of the day prior to the  effective  date of the  Change of  Control
shall calculate the gross-up  payment.  If the accounting firm so engaged by the
Company is serving as accountant or auditor for the individual,  entity or group
effecting  the  Change of  Control,  the  Company  shall  appoint  a  nationally
recognized  accounting firm to make the determinations  required hereunder.  The
Company  shall bear all  expenses  with  respect to the  determinations  by such
accounting firm required to be made hereunder.

              (iv)  The  accounting  firm  engaged  to make  the  determinations
hereunder  shall provide its  calculations,  together  with detailed  supporting
documentation,  to the Company and Executive  within  fifteen (15) calendar days
after  the date on  which  Executive's  right  to a  payment  is  triggered  (if
requested  at that time by the  Company  or  Executive)  or such  other  time as
requested by the Company or Executive. If the accounting firm determines that no
excise tax is payable  with respect to a payment,  it shall  furnish the Company
and Executive with an opinion reasonably  acceptable to Executive that no excise
tax will be imposed with respect to such payment.  Any good faith determinations
of the  accounting  firm made hereunder  shall be final,  binding and conclusive
upon the Company and Executive.

              (v) The Company  agrees to make  reasonable  efforts to obtain the
requisite  stockholder  approval  under  Section  280G of the Code to avoid  the
imposition of an excise tax.

              (vi) If a  transaction  occurs which may invoke the  provisions of
Section  280G,  the  Executive  shall  cooperate  with the Company to  structure
payments to the  Executive  in a manner to eliminate or minimize the effect upon
the Company of Section 280G  provided that such  cooperation  will not adversely
affect the Executive.

         5. TERMINATION OF EMPLOYMENT

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

                                      -5-
<PAGE>

              (i) Base Salary through the date of death which shall be paid in a
single lump sum not later than required by law;

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

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

         (b) TERMINATION DUE TO DISABILITY.  In the event the Executive  becomes
Disabled (as defined  below),  the Company may  terminate  his  employment  upon
notice  to  that  effect,   subject  to  compliance   with  the  Americans  With
Disabilities  Act and applicable state disability laws. Upon such a termination,
the Executive or his  representative,  as the case may be, shall be entitled to,
and their sole remedies under this Agreement shall be:

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

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

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

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

         (c) TERMINATION BY THE COMPANY FOR CAUSE.

              (i) "Cause shall mean:

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

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

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

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

                                      -6-
<PAGE>

For purposes of this  Agreement,  an act or failure to act on  Executive's  part
shall be considered "willful" if it was done or omitted to be done by him not in
good faith,  and shall not include any act or failure to act resulting  from any
incapacity of Executive.

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

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

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

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

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

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

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

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

              (iv) immediate  vesting of all shares subject to the stock options
which are unvested, all of which will be exercisable during the Severance Period
or for the remainder of the term of the option, if less;

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

                   (A) the end of the Severance Period; or

                                      -7-
<PAGE>

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

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

"TERMINATION WITHOUT CAUSE" shall mean the Executive's  employment is terminated
by the Company for any reason during the term of this Agreement other than Cause
(as defined in Section 5(c)) or due to death or Disability.

"CONSTRUCTIVE  TERMINATION  WITHOUT  CAUSE"  shall  mean  a  termination  of the
Executive's  employment  at his  initiative  as  provided in this  Section  5(d)
following the occurrence,  without the Executive's  written  consent,  of one or
more of the following events (except as a result of a prior termination):

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

                   (B) an  assignment  of any  duties  to  Executive  which  are
inconsistent with his status as President and Chief Executive Officer;

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

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

                   (E) Forced  relocation  of the  Executive by the Company to a
work  location  greater  than fifty (50) miles from the  Company's  facility  in
Herndon, Virginia.

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

                                      -8-
<PAGE>

              (i) Base Salary through the date of termination of the Executive's
employment,  which shall be paid in a single lump sum no later than  required by
law following such termination;

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

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

                   (A) the first anniversary of such termination; or

                   (B) the date, or dates' he received  equivalent  coverage and
benefits  under the plans and programs of a subsequent  employer  (such coverage
and benefits to be determined on a coverage-by-coverage,  or benefit-by-benefit,
basis);  provided that (x) if the  Executive is precluded  from  continuing  his
participation in any employee benefit plan or program as provided in this clause
(iii) of this Section 5(e), he shall receive cash payments equal on an after-tax
basis to the cost to him of obtaining  the benefits  provided  under the plan or
program in which he is unable to  participate  for the period  specified in this
clause  (iii) of this  Section  5(e),  (y) such  cost  shall be deemed to be the
lowest cost that would be incurred by the  Executive in  obtaining  such benefit
himself on an  individual  basis,  and (z) payment of such amounts shall be made
quarterly in advance; and

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

         (f) VOLUNTARY TERMINATION.  In the event of a termination of employment
by the Executive on his own initiative  other than (i) pursuant to Section 5(e),
(ii)  a  termination  due  to  death  or  Disability  or  (iii)  a  Constructive
Termination  Without Cause,  the Executive  shall have the same  entitlements as
provided in Section  5(c)(ii)  above for a  Termination  for Cause.  A voluntary
termination  under  this  Section  5(f)  shall be  effective  upon 30 days prior
written notice to the Company or such shorter period as may be determined by the
Company.

         (g) NO  MITIGATION,  NO  OFFSET.  In the  event of any  termination  of
employment  under this Section 5, the Executive  shall be under no obligation to
seek other employment;  amounts due the Executive under this Agreement shall not
be offset by any remuneration  attributable to any subsequent employment that he
may obtain.

         (h) NATURE OF PAYMENTS. Any amounts due under this Section 5 are in the
nature of severance payments considered to be -------------------  reasonable by
the Company and are not in the nature of a penalty.

         6. CONFIDENTIALITY

         (a) During the Term of Employment and  thereafter,  the Executive shall
not,  without  the prior  written  consent of the  Company,  disclose  to anyone
(except in good faith in the ordinary course of business to a person who will be
advised by the Executive to keep such  information  confidential) or make use of

                                      -9-
<PAGE>

any Confidential Information (as defined below) except in the performance of his
duties hereunder or when required to do so by legal process, by any governmental
agency having  supervisory  authority over the business of the Company or by any
administrative or legislative body (including a committee thereof) that requires
him to divulge, disclose or make accessible such information.  In the event that
the Executive is so ordered,  he shall give prompt written notice to the Company
in order to allow the Company the  opportunity to object to or otherwise  resist
such order.

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

         7. NON-COMPETITION; NON-SOLICITATION

         The Executive  acknowledges  that his employment with the Company will,
of necessity,  provide him with  specialized,  unique knowledge and confidential
information  and  that,  in light of the  competitive  nature  of the  Company's
business,  the Company could be harmed if such  knowledge and  information  were
used in competition with the Company.  The Executive  further  acknowledges that
the Company would not enter into this  Agreement  and undertake the  substantial
obligations  under this  Agreement  without  the  Executive's  agreement  to the
following provisions of this Section 7:

         (a)  During  the  Restricted  Period  (as  defined  below) he will not,
directly  or  indirectly,  as  an  officer,  director,   stockholder,   partner,
associate,  employee, consultant, owner, agent, co-venturer or otherwise, become
or be  interested  in or be  associated  with  any  other  corporation,  firm or
business engaged in the manufacture, marketing or sale of products which compete
directly with products of the Company.  The Executive's  ownership,  directly or
indirectly,  of not more than three  percent (3%) of the issued and  outstanding
stock of any  corporation  or other entity,  the shares of which are traded on a
national securities exchange or the Nasdaq Stock Market,  shall not in any event
be deemed to be a violation of the provisions of this Section 7(a).

                                      -10-
<PAGE>

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

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

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

         (e) For the purposes of this Section 7, "RESTRICTED  PERIOD" shall mean
the period beginning on the date hereof and ending with:

              (i) in the case of a  termination  of the  Executive's  employment
pursuant to Section  5(c) above,  or in the case the  Executive  terminates  his
employment other than pursuant to (x) a Constructive  Termination  Without Cause
or (y) pursuant to Section 5(e), the first anniversary of such termination;

              (ii) in the case of a termination  of the  Executive's  employment
pursuant to Section 5(d) above, the end of the Severance Period; and

              (iii) in the case of a termination of the  Executive's  employment
pursuant to Section 4(e) above, the date of such termination; PROVIDED, HOWEVER,
that  within 10 days after the  Executive  announces  that he will not renew his
employment  hereunder  at the end of the then  current  Term of  Employment  the
Company may notify the Executive that it will cause the Restriction Period to be
twelve (12) months and, in consideration  for such period,  the Company will pay
to the Executive the amounts specified in Section 5(e) above plus the following:

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

                    a.   the end of the Restriction Period; or

                    b.   the date, or dates, he received equivalent coverage and
                         benefits  under the plans and  programs of a subsequent
                         employer  (such  coverage and benefits to be determined

                                      -12-
<PAGE>

                         on  a   coverage-by-coverage,   or  benefit-by-benefit,
                         basis);

                                    provided   that  (x)  if  the  Executive  is
                           precluded from  continuing his  participation  in any
                           employee  benefit plan or program as provided in this
                           clause (iii) of this Section  5(e),  he shall receive
                           cash payments equal on an after-tax basis to the cost
                           to him of obtaining the benefits  provided  under the
                           plan or program in which he is unable to  participate
                           for the period specified in this clause (iii) of this
                           Section 5(e), (y) such cost shall be deemed to be the
                           lowest cost that would be  incurred by the  Executive
                           in obtaining  such benefit  himself on an  individual
                           basis,  and (z) payment of such amounts shall be made
                           quarterly in advance; and

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

          ] or

         8. REMEDIES

         In addition to whatever  other rights and remedies the Company may have
at equity or in law, if the Executive  breaches any of the provisions contain in
Sections  6 or 7 above,  the  Company  (a) shall  have the right to  immediately
terminate all payments and benefits due under this  Agreement and (b) shall have
the right to seek  injunctive  relief.  The Executive  acknowledges  that such a
breach would cause  irreparable  injury and that money damages would not provide
an adequate remedy for the Company.

         9. RESOLUTION OF DISPUTES

         Any disputes  arising under or in connection  with this Agreement shall
be resolved by binding arbitration,  to be held in Washington,  DC in accordance
with the rules and procedures of the American  Arbitration  Association,  except
that disputes  arising under or in connection  with Sections 6 and 7 above shall
be submitted to a court of  appropriate  jurisdiction.  Judgment  upon the award
rendered by the  arbitrators)  may be entered in any court  having  jurisdiction
thereof.  Each  party  shall  bear his or its own  costs of the  arbitration  or
litigation,   including,  without  limitation,   attorneys'  fees.  Pending  the
resolution of any  arbitration or court  proceeding,  the Company shall continue
payment of all amounts and benefits due the Executive under this Agreement.

         10. INDEMNIFICATION

         (a) The Company  agrees that if the  Executive  is made a party,  or is
threatened to be made a party, to any action, suit or proceeding, whether civil,
criminal,  administrative  or investigative (a  "PROCEEDING"),  by reason of the
fact that he is or was a  director,  officer or  employee  of the Company or any
subsidiary or is or was serving at the request of the Company or any  subsidiary
as a  director,  officer,  member,  employee  or agent of  another  corporation,

                                      -12-
<PAGE>

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

         (b)  Neither  the  failure  of the  Company  (including  its  board  of
directors,   independent   legal  counsel  or   stockholders)  to  have  made  a
determination prior to the commencement of any proceeding  concerning payment of
amounts claimed by the Executive under Section 10(a) above that  indemnification
of the  Executive  is  proper  because  he has met the  applicable  standard  of
conduct,  nor a determination by the Company  (including its board of directors,
independent  legal counsel or stockholders)  that the Executive has not met such
applicable  standard of conduct,  shall create a presumption  that the Executive
has not met the applicable standard of conduct.

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

         11. EFFECT OF AGREEMENT ON OTHER BENEFITS

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

         12. ASSIGNABILITY; BINDING NATURE

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

                                      -13-
<PAGE>

event of a sale or transfer of assets as described in the preceding sentence, it
shall take  whatever  action it legally  can in order to cause such  assignee or
transferee to expressly  assume the  liabilities,  obligations and duties of the
Company  hereunder.  No  fights  or  obligations  of the  Executive  under  this
Agreement may be assigned or transferred by the Executive  other than his rights
to compensation and benefits, which may be transferred only by will or operation
of law, except as provided in Section 18 below.

         13. WARRANTY OF EXECUTIVE

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

         14. COMPANY REPRESENTATIONS

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

         15. ENTIRE AGREEMENT

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

         16. AMENDMENTS; WAIVERS

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

                                      -14-
<PAGE>

17.      SEVERABILITY OF PROVISIONS

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

         18. BENEFICIARIES/REFERENCES

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

         19. GOVERNING LAW

         This  Agreement  shall be governed by and construed and  interpreted in
accordance with the laws of the  Commonwealth of Virginia  without  reference to
principles of conflict of laws.  The parties hereby  irrevocably  consent to the
service of any and all  process in any action or  proceeding  arising  out of or
relating  to this  Agreement  by the  mailing  of copies of such  process to the
parties at the address specified in Section 20 hereof.

         20. NOTICES

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

         21. HEADINGS

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

                                      -15-
<PAGE>

         22. COUNTERPARTS

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

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

                                    NX NETWORKS, INC.

                                    By:______________________________________

                                    Title:___________________________________

                                    _________________________________________
                                    John DuBois

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