Document:

<PAGE>

                                                                   Exhibit 10.28

                          LICENSE SOFTWARE ADDENDUM #2

                                       to

                       MASTER TECHNOLOGY LICENSE AGREEMENT

                                     between

                               KONICA CORPORATION

                                       and

                         PEERLESS SYSTEMS(R)CORPORATION

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

<PAGE>

                         LICENSE SOFTWARE ADDENDUM #2 TO
                       MASTER TECHNOLOGY LICENSE AGREEMENT
                             DATED January 23, 2000

This License Software Addendum #2 ("this LSA #2") is entered into as of January
19, 2000 (the "Effective Date") by and between Konica Corporation, a Japanese
corporation ("KONICA") and PEERLESS Systems(R) Corporation, a Delaware
corporation ("PEERLESS"), pursuant to the provisions of the Master Technology
License Agreement between those Parties dated January 23, 2000 (the "MTLA") and
License Software Addendum #1 dated January 23, 2000 (LSA #1). That MTLA provides
that KONICA may license certain Licensed Devices from PEERLESS pursuant to one
or more Addenda to the MTLA executed by KONICA and PEERLESS. This LSA #2 is
hereby made part thereof, and the terms and conditions of the MTLA and LSA # 1
are incorporated by reference herein. This LSA #2 includes the following
Exhibit:

         Exhibit A - Payments and Payment Terms

         IN WITNESS WHEREOF, the Parties hereto have executed this LSA #1 as of
the date last below written:

KONICA CORPORATION                                PEERLESS SYSTEMS CORPORATION

By:                                               By:

         /s/  Yoshiaki Ando                              /s/  Cary A. Kimmel
-----------------------------------------------   ------------------------------
(Authorized Signature)                            (Authorized Signature)
Name:    Yoshiaki Ando                            Name:   Cary A. Kimmel
Title:   General Manager of Planning Department   Title:  Director of Business
         Business Machines Sales and
         Marketing Division
Date:    January 20, 2000                         Date:   January 19, 2000

<PAGE>

                          LICENSED SOFTWARE ADDENDUM #2

1.0 DEFINITIONS. All capitalized terms used herein shall have the meaning
specified in this LSA #2 or, if not defined herein, then the meaning specified
in the MTLA or LSA # 1.

2.0 ADDITIONAL LICENSE GRANTED. Without limiting any of KONICA's rights under
the MTLA and LSA # 1 and subject to the provisions of this Addendum as well as
the payment of all applicable license fees as stated in Exhibit A herein for the
tern of such license, PEERLESS grant to KONICA:

2.1 An additional Block License for PEERLESS Licensed Products contained in the
Authorized KONICA Devices as identified in LSA # 1, Exhibit A, Section 2.0 and
derivative products thereto. All terms and conditions associated with this
additional Block License Grant for PEERLESS Licensed Products contained in the
Authorized KONICA Devices shall be the same as that contained in LSA #l, Exhibit
C, Section 2.5.2 except as may be noted herein. The Per Unit License Fee for
each object code copy of PEERLESS Licensed Products contained in the Authorized
KONICA Devices distributed by KONICA, or KONICA Authorized OEM Remarketers,
shall be that contained in LSA #1, Exhibit C, Table #3.

2.2 KONICA may utilize this additional Block License for both or either of the
PEERLESS Licensed Products and/or the Adobe PostScript(R)3(TM) contained in the
Authorized KONICA Devices. Such utilization may occur upon certification of such
Authorized KONICA Devices to be shipped with Adobe PostScript(R)3(TM). The Per
Unit License Fee for each object code copy of Adobe PostScript(R)3(TM) contained
in the Authorized KONICA Devices distributed by KONICA or KONICA Authorized OEM
Remarketers shall be that contained in Table # 1 herein below and derivative
products thereto.

All terms and conditions associated with this Block License for Adobe
PostScript(R)3(TM) contained in the Authorized KONICA Devices shall be the same
as that contained in LSA #1, Exhibit C, Section 2.5.

                  TABLE 1- PER UNIT LICENSE FEES (U.S. DOLLARS)

    ------------------------------------------------------------------------
            KONICA                    Adobe PostScript(R)3(TM)as option
       Authorized Device                 (inclusive of Drivers)
    ------------------------------------------------------------------------
     PS-341                                         $*
    ------------------------------------------------------------------------
     PS-351                                         $*
    ------------------------------------------------------------------------
     PS-361                                         $*
    ------------------------------------------------------------------------
     IP-60IJ                                        $*/1/
    ------------------------------------------------------------------------
     PS-341J                                        $*
    ------------------------------------------------------------------------
     PS-351J                                        $*
    ------------------------------------------------------------------------

/1/ For the IP-601J, PostScript is standard and not an option

2.3 KONICA is granted no additional rights other than the rights provided in LSA
# 1 hereunder to distribute or in any other manner transfer Source Code or
Source Materials to any third person. All Licenses granted herein are
non-exclusive. It is also understood that this LSA #2 does not obligate PEERLESS
to provide any further services.

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

<PAGE>

3.0 DELIVERABLES. KONICA agrees that this LSA #2 requires no additional
deliverables or obligations from or on the part of PEERLESS. It is further
agreed that this LSA #2 does not obligate PEERLESS to provide any further
services.

4.0 TERM AND TERMINATION. The term of this LSA #2 shall be coextensive with the
term of the License under the MTLA and LSA # 1.

5.0 INDEMNIFICATION. KONICA shall have the right, subject to the MTLA, LSA # I
and this LSA#2, to control its development, manufacturing and marketing efforts.
Accordingly, KONICA shall, except to the extent that PEERLESS has indemnified
KONICA pursuant to the MTLA, indemnify and hold PEERLESS harmless from any and
all losses or damages including without limitation attorneys' fees and costs and
all third party claims or demands of any type whatsoever arising out of,
incurred in connection with or relating to the KONICA's development,
manufacturing and marketing of the Authorized KONICA Devices.

6.0 PROPRIETARY RIGHTS AND CONFIDENTIALITY. PEERLESS' and KONICA's proprietary
ownership rights and responsibilities in this LSA #2 shall remain unchanged from
that enumerated in LSA # 1 Sections 6.1 and 6.2.

In addition, KONICA's obligations of confidentiality imposed pursuant to the
MTLA and Section 6.3 of LSA # I remain unchanged and applicable to thus LSA #2.

Any breach by KONICA of any of its obligations under this Section 6 shall be
considered to be a Default of the provisions of the MTLA.

7.0 AUDIT RIGHTS. PEERLESS shall have the right, upon one (1) business day's
prior notice, to have one (1) of its employees walk through and inspect any
KONICA Facility to determine whether KONICA employs adequate security procedures
as required in Paragraph 6 of this LSA #2.
///End

<PAGE>

                     EXHIBIT A - PAYMENTS AND PAYMENT TERMS

1.0 LICENSE FEES: The recurring Per Unit License Fee that PEERLESS charges
KONICA for the right to use object code copies:

(1) of PEERLESS Licensed Products is contained in LSA #1, Section 2.5, Table #3
    and derivative products thereto.

(2) of Adobe PostScript(R)3(TM) embedded in PEERLESS Licensed Devices included
    in each Authorized Konica Device shipped by KONICA or KONICA Authorized
    Reinarketers is detailed in Table 1 herein or derivative products thereto.

KONICA will apply the recurring Per Unit License Fees as stated in this Section
1.0 above to the actual number of the Authorized KONICA Devices slipped that
contain copies of die licensed object codes formats of the PEERLESS Licensed
Products and/or PostScript(R)3(TM) respectively, and will thus calculate the
equivalent earned License Fee. These earned License Fees shall be applied
against the U.S. $* (* dollars) paid hereunder, until said amount is fully
credited.

2.0 Block License Payment. This Block License is granted for the payment of U.S.
    $* (* dollars) due and payable as of *. Said payment is non-refundable,
    non-transferable and non-creditable. This Block License Payment shall be
    paid on the following dates:
(1) Payment of U.S. $* (* dollars) upon *.
(2) Payment of U.S. $* (* dollars) on *
(3) Payment of U.S. $* (* dollars) on *
(4) Payment of U.S. $* (* dollars) on *
(5) Payment of U.S. $* (* dollars) on *.

///End

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

                                                                   Exhibit 10.29

                          LICENSED SOFTWARE ADDENDUM #3

                                       to

                       MASTER TECHNOLOGY LICENSE AGREEMENT

                                     between

                               KONICA CORPORATION

                                       and

                         PEERLESS SYSTEMS(R) CORPORATION

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

<PAGE>

                     LICENSED SOFTWARE ADDENDUM #3 TO MASTER
                       TECHNOLOGY LICENSE AGREEMENT DATED
                                 APRIL 19, 1999

This Licensed Software Addendum #3 ("this LSA #3") is entered into as of July
21, 2000 (the "Effective Date") by and between Konica Corporation, a Japanese
corporation ("KONICA") and PEERLESS Systems(R) Corporation, a Delaware
corporation ("PEERLESS"), pursuant to the provisions of the Master Technology
License Agreement between those Parties dated Apri1 19, 2000 (the "MTLA"). That
MTLA provides that KONICA may license certain Licensed Products from PEERLESS
pursuant to one or more Addenda to the MTLA executed by KONICA and PEERLESS.
This LSA #3 is hereby made part thereof, and the terms and conditions of the
MTLA are incorporated by reference herein. This LSA #3 includes the following
Exhibits:

      Exhibit A - Description of License Granted
      Exhibit B - (s) Specifications
      Exhibit C - Payments and Payment Terms
      Exhibit D - Limited Warranty

IN WITNESS WHEREOF, the Parties hereto have executed this LSA #3 as of the date
last below written:

KONICA CORPORATION                               PEERLESS SYSTEMS CORPORATION

By:                                              By:

      /s/ Yoshiaki Ando                          /s/  Ron Davis
----------------------------------------         -------------------------------
(Authorized Signature)

                                                 (Authorized Signature)
Name:       Yoshiaki Ando

                                                 Name:  Ron Davis

Title:      General Manager of Planning
Department: Business Machines Sales and          Title: Vice President of Sales
            Marketing Division

Date: July 21, 2000                              Date: July 21, 2000

--------------------------------------------------------------------------------
                                  Page 1 of 12        Initials:  PEERLESS _____;
                                                                   KONICA _____

<PAGE>

                          LICENSED SOFTWARE ADDENDUM #3

1.0  DEFINITIONS. All capitalized terms used herein shall have the meaning
specified in this LSA#3 or, if not defined herein, then the meaning specified in
the MTLA. For terms that are defined in this Section 1 and in the MTLA, the
definition provided herein shall govern for all purposes hereof.

1.1  "Derivative Product", with respect to any hardware product, means the main
body of an Authorized KONICA Device incorporating PEERLESS Material and any
other components which shall be bundled with and be contained in a package with
the main body of product at the time of KONICA's shipment of that Authorized
KONICA Device to KONICA's customer.

1.2  "Derivative Work (s)" with respect to any computer program, means (i) for
copyrightable or copyrighted material that is based upon one or more preexisting
works, such as a revision, modification, translation, abridgment, condensation,
expansion, or any other form in which such preexisting works may be recast,
transformed, or adapted; (ii) for patentable or patented material, any
improvement thereon; and (iii) for material which is protected by trade secret,
any new material derived from such existing trade secret material, including new
material which may be protected by copyright, patent and/or trade secret, and
that, if prepared without authorization of the owner of the copyright, patent
and trade secret in such preexisting work, would constitute a infringement. For
purposes hereof, a Derivative Work shall also include any compilation that
incorporates such a preexisting work.

1.3  "Machine Executable Copy" includes anything designated as such under the
MTLA and, without limiting the foregoing, any object code, machine executable
version of any Derivative Work of any Current Release or Update Release licensed
to KONICA under this LSA #3.

1.4  "PEERLESS Materials" includes anything designated as such under the MTLA
and, without limiting the foregoing, any of the foregoing incorporated in or
underlying any Derivative Work created pursuant to Section 2 of this LSA #3.

1.5  "Source Materials" means any source code and any related documentation or
materials for the Current Release(s) or for any Update Release, including
without limitation any such code or materials incorporated in underlying any
Derivative Work created pursuant to Section 3 of this LSA #3.

1.6  "Source Code" means Code in programming languages such as "C" and Fortran
which when processed by a compiler, assembler or interpreter become executable
by a computer, including all comments and procedural code (e.g., job control
language (JCL) statements), plus all related development documents (e.g., flow
charts, schematics, statements of principles of operations, end-user manuals,
architectural standards, and any other specifications that are used to create or
that comprise the Code).

1.7  "Source License" means the rights granted pursuant to Sections 2 and 3 of
this LSA #3.

--------------------------------------------------------------------------------
                                  Page 2 of 12        Initials:  PEERLESS _____;
                                                                   KONICA _____

<PAGE>

2.0  ADDITIONAL LICENSE GRANTED. Without limiting any of KONICA's rights under
the MTLA and subject to the provisions of this Addendum as well as the payment
of all applicable license fees for the term of such license, PEERLESS grants a
non-exclusive, nontransferable license to KONICA (i) to create source code
versions of Derivative Works of any Current Release or any Update Release, (ii)
to create Machine Executable Copies in Object Code format only using any
development environment or compiler of which PEERLESS may approve in writing,
which approval shall not be unreasonably withheld, and (iii) to provide
maintenance, support or similar services in connection with any Machine
Executable Copies distributed under the MTLA.

Each Derivative Work, if (1) it is to be incorporated in and distributed in a
new product other than the PS-361J, PS-331, PS-331J, IP-304, IP-304J, PS332,
PS332J, IP431, IP431J, PS-342, PS342 J, or (2) if it is to be incorporated in
and distributed in previously Authorized Konica Devices, or (3) if it is to be
incorporated in and distributed in an option thereto to the aforementioned
enumerated Authorized KONICA Devices, requires the development of a separate
License Software Addendum. The Derivative Work covered in the License System
Addendum #3 currently is limited to use in Object Code format only in the
Authorized KONICA Devices set out in Exhibit A.

3.0  DELIVERABLES. KONICA agrees that PEERLESS has transmitted to an Authorized
KONICA Facility all applicable Source Code and related standard documentation
for each Current Release. PEERLESS has no further responsibilities associated
with deliverables. PEERLESS shall have no obligation hereunder to port any
Update Release provided hereunder.

4.0  TERM AND TERMINATION. The term of this LSA #3 shall be coextensive with the
term of the License under the MTLA.

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

6.0  PROPRIETARY RIGHTS AND CONFIDENTIALITY

6.1  PEERLESS shall own all title and proprietary rights, including without
limitation copyrights, patents and trade secret rights, in any PEERLESS
Materials, including without limitation any portion thereof incorporated in or
underlying any Derivative Work created by KONICA, and any part or copy of any of
the foregoing in any form or media.

6.2  In the case of all Derivative Work, PEERLESS shall continue to own the
underlying Code and all proprietary rights thereto, and shall own the Derivative
Work as a whole and all proprietary rights thereto. PEERLESS shall own such
modifications per se and all proprietary rights thereto. KONICA shall have the
right and license to use such modifications per se, in Source Code or Object
Code format to the same extent it is licensed to use the Code in such respective
formats as set forth elsewhere in the MTLA and this LSA #3. The foregoing

--------------------------------------------------------------------------------
                                  Page 3 of 12        Initials:  PEERLESS _____;
                                                                   KONICA _____

<PAGE>

ownership rights are subject to the Licenses set forth herein. Rights not
expressly granted to the KONICA hereunder are reserved by the PEERLESS.

Accordingly, KONICA has the right to develop its own modifications to the
PEERLESS Source Code, either by itself or through PEERLESS. The right to
manufacture and distribute such modified code (i.e., a Derivative Work) in
Object Code format only requires a separate Licensed Software Addendum.

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

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

6.4  Any breach by KONICA of any of its obligations under this Section 6 shall
be considered to be a Default of the provisions of the MTLA.

7.0  AUDIT RIGHTS. PEERLESS shall have the right, upon one (1) business day's
prior notice, to have one (1) of its employees walk through and inspect any
KONICA Facility to determine whether KONICA employs adequate security procedures
as required in Paragraph 6.3 of this LSA #3.

///End

--------------------------------------------------------------------------------
                                  Page 4 of 12        Initials:  PEERLESS _____;
                                                                   KONICA _____

<PAGE>

                   EXHIBIT A - DESCRIPTION OF LICENSE GRANTED

1.0  PEERLESS Licensed Products: KONICA is authorized to use the following
PEERLESS Licensed Product(s) listed below which it has already received in
Source Code format:

     1.1 PEERLESSPRINT(R)5E. Current Release.

     1.2 PEERLESSPRINT(R)6. Current Release.

     1.3 PEERLESSPage(TM) Image Operating System, inclusive of PEERLESSPOET(TM).
         PEERLESSPOET(TM) is an integration layer that links Adobe Systems
         PostScript(R)3(TM) to PEERLESSPage(TM) and contains elements of Adobe
         Source Code. Current Release. Version 3.0 or later

     1.4 PEERLESSPRINT(R)6 and PEERLESSPRINT(R)5E Printer Drivers (Roman
         Version) for Windows 3.x/95/98 and NT4.0. Current Release.

     1.5 PEERLESS Software Developer's Kit (SDK) containing Adobe Systems
         Incorporated PostScript(R)3(TM) in Object Code form. Current Release.

         Licenses and fees for Adobe PostScript(R)3(TM) and Postscript(R) fonts
         are included in this license and all fees associated thereto will be
         paid directly to PEERLESS by KONICA.

     1.6 PEERLESS Software Developer's Kit (SDK) containing Adobe Systems
         Incorporated PostScript(R)3(TM) Drivers in Object Code form. Current
         Release.

         Licenses associated thereto will be paid directly to PEERLESS by
         KONICA.

2.0  Authorized Konica Devices: Konica is authorized to use the PEERLESS
     Licensed Products in Object Code format only solely in the following
     Authorized KONICA Devices:

     2.1 IP-431 Series (including the IP-431J, and Roman PostScript Option Kit
     PS-342 and the Kanji PostScript Option Kit PS-342J).

     2.2 IP-304 Series (including the IP-304J, and Roman PostScript Option Kits
     PS-332 and the Kanji PostScript Option Kits PS-332J).

     2.3 IP-303 Series (including the IP-303J, and Roman PostScript Option Kits
     PS-331 and the Kanji PostScript Option Kits PS-331J).

     2.4 PS-361J (Kanji PostScript Kit to the IP601J).

3.0  Other Licenses: Licenses and fees for PCL fonts and font scaling technology
must be negotiated with, and paid directly to, Bitstream or the Agfa
Corporation.

///End

--------------------------------------------------------------------------------
                                  Page 5 of 12        Initials:  PEERLESS _____;
                                                                   KONICA _____

<PAGE>

                       EXHIBIT B - PRODUCT SPECIFICATIONS

1.0  Authorized Konica Device Specifications: A KONICA specification document is
being prepared by KONICA, and when issued and accepted by PEERLESS, said
document is hereby incorporated herein by this reference.

2.0  Deliverables: KONICA agrees that this LSA #3 requires no additional
deliverables or obligations from or on the part of PEERLESS. It is further
agreed that this LSA #3 does not obligate PEERLESS to provide any further
services.

3.0  Test Plans: Unless otherwise stated herein, KONICA shall test the
Designated KONICA Device, including but not limited to any Revised Object or
certified Revised Object previously modified by PEERLESS) for conformity with
the Adobe Certification Test Suite in accordance with the following procedures.
PEERLESS shall monitor and verify such KONICA testing.

3.1. Test Plan. KONICA shall notify PEERLESS at least * (*) days prior KONICA's
First Commercial Shipment of the Authorized KONICA Device. At such time, KONICA
shall provide initial versions of any applicable PPD Files, and any other
checklists or specification information requested by PEERLESS. Based on such
information, PEERLESS will request that Adobe creates a test plan specifying the
testing to be performed by KONICA to meet Adobe's certification criteria. If the
Authorized KONICA Device that contains the Licensed Products is one of a family
of products with substantially similar functionality and features, Adobe may
choose to identify a subset of these Authorized KONICA Devices on which to
perform testing for conformance with the acceptance criteria.

3.2. KONICA Testing. Prior to submission of Authorized KONICA Device to Adobe
for certification in accordance with the terms hereof, KONICA shall test the
Authorized KONICA Device for conformity with the Adobe Certification Test Suite
in accordance with the test plan provided by Adobe. After successful completion
of such testing, KONICA shall provide PEERLESS with a comprehensive report of
the test results of such testing which will include all printer output and other
test results, and a pre-production release of the Revised Object or proposed
Authorized KONICA Device that generated the test results. KONICA shall supply
PEERLESS with a declaration signed by an authorized representative of KONICA
certifying to the effect that it has run, the Adobe Certification Test Suite in
accordance with the test plan supplied by Adobe and that the results provided to
PEERLESS for review are accurate and complete.

3.3. Adobe Certification. Adobe shall have * (*) business days following
PEERLESS' delivery of the test results to Adobe, to determine from its review of
such test results whether the Authorized KONICA Device (a) conforms to the
applicable Adobe Certification Test Suite and any other tests or procedures
specified in the test plan, and (b) produces output meeting Adobe's quality
standards, as reasonably determined by Adobe from time to time. Thereupon
PEERLESS shall notify KONICA in writing either that ADOBE certifies the
Authorized KONICA Device or has elected to submit the Authorized KONICA Device
to further testing and certification before it can be approved for First
Commercial Shipment of a Licensed System. In the event Adobe has to run a full
Quality Assurance testing cycle, KONICA shall supply PEERLESS with all of the
necessary Loaned Equipment, maintenance services and consumables

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

--------------------------------------------------------------------------------
                                  Page 6 of 12        Initials:  PEERLESS _____;
                                                                   KONICA _____

<PAGE>

required by Adobe to conduct such certification testing, including the
applicable Object Code and any updated versions thereof in a timely manner as
the updated versions become available. Alternatively, Adobe may request that it
conduct such testing at PEERLESS' or KONICA's site subject to KONICA paying
Adobe's reasonable fees and travel expenses resulting from such on-site testing.
Upon Adobe's determining that the Authorized KONICA Device does not conform to
the Adobe Certification Test Suite and any other tests or procedures specified
in the test plan, or that the test output fails to meet Adobe's quality
standards, PEERLESS shall provide to KONICA a report identifying the failure.
KONICA shall use reasonable efforts to promptly correct any nonconformity and
resubmit the Authorized KONICA Device for re-testing. This process shall
continue until Adobe certifies the Authorized KONICA Device. KONICA be subject
to a re-testing charge of U.S.$* (* dollars) for each re-test.

3.4 Adobe Testing Schedule. If testing is required by Adobe, PEERLESS and KONICA
will use their best efforts to complete certification activities within a *
(*) week period.

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

--------------------------------------------------------------------------------
                                  Page 7 of 12        Initials:  PEERLESS _____;
                                                                   KONICA _____

<PAGE>
                     EXHIBIT C - PAYMENTS AND PAYMENT TERMS

1.0   PER UNIT LICENSE FEES:

For each Authorized KONICA Device shipped pursuant to this LSA #3, and in
LSA#2(as defined in section 2.2) and, LSA#1(as defined in section 2.5),

PEERLESS and KONICA agree that there shall be a non-refundable, non-transferable
and noncreditable Per Unit License Fee due and to be paid to PEERLESS. The
amount of the Per Unit License Fee for each Derivative Product developed
hereunder shall be set forth in a separate Licensed Software Addendum prior to
the time that the Derivative Product begins shipment.

License Fees for the PCL fonts and font scaling technology are not included in
the KONICA Fees outlined above. These fees must be negotiated with, and paid
directly to, the Agfa Corporation. All pricing for Adobe PostScript(R)3TM and
Postscript(R) fonts are covered under this LSA #3 and shall be paid directly to
PEERLESS by KONICA.

2.1   LICENSE FEES: The recurring Per Unit License Fee is the fee that PEERLESS
charges KONICA for the right to use PEERLESS' Licensed Products and its hardware
design in each Authorized KONICA Device shipped by KONICA, and is detailed in
Table 1 below. The Adobe PostScript(R) fees are inclusive of Adobe Roman fonts
and drivers. Per Unit License Fees for Adobe compatible Kanji fonts are listed
in Paragraph 2.2 herein.

The following Per Unit License Fees, for the listed Authorized Konica Devices,
are inclusive of fees associated tandem connections.

                  TABLE 1- PER UNIT LICENSE FEES (U.S. DOLLARS)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
       KONICA             PEERLESSPage(TM)      PEERLESSPRINT(R)5E     PEERLESSPRINT(R)           Adobe
     AUTHORIZED            Imaging System               & 6             Drivers (Roman      PostScript(R)3(TM)as
       DEVICE                                                         Version for Windows   option (inclusive
                                                                      3.1/95/ 98 & NT4.0)      of Drivers)
---------------------------------------------------------------------------------------------------------------
<S>                        <C>                  <C>                   <C>                   <C>
PS-361J                        $*                     N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
PS-331                         $*                     N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
PS-331J                        $*                     N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
IP-304                         $*                      $*                     $*                   N/A
---------------------------------------------------------------------------------------------------------------
PS-332                        N/A                     N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
PS-332J                        $*                     N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
IP431                          $*                      $*                     $*                   N/A
---------------------------------------------------------------------------------------------------------------
PS-342                         N/A                    N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
PS-342J                        $*                     N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
</TABLE>

2.2   INCREMENTAL PER UNIT LICENSE FEES FOR KANJI FONTS: In addition to the
recurring Per Unit License Fees enumerated in Paragraph 2.1 hereinabove, for
each Authorized KONICA Device contain Adobe PostScript(R) Kanji fonts, KONICA
will pay to PEERLESS the following recurring Per Unit License Fees:

2.2.1 PS-361J, PS-331J and PS-332J. Base requirement of * (*) Morisawa fonts,
U.S.$ * (* dollars) per unit.

2.2.2 PS-342J. Base requirement of * (*) Heisei fonts, U.S.$ * (* dollars) per
unit.

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.
--------------------------------------------------------------------------------
                                  Page 8 of 12        Initials:  PEERLESS _____;
                                                                   KONICA _____

<PAGE>

2.3 OTHER LICENSE FEES: PEERLESS agrees that there is no additional Per Unit
License Fee for the PSIO Interface so long as it is used with network interface
cards (NICs) that are licensed from PEERLESS, Emulex or net/Silicon. KONICA
agrees to notify PEERLESS in writing of its agreement with a NIC provider and
identify it to PEERLESS. However, If KONICA uses NICs from a source other than
PEERLESS, Emulex or net/Silicon, a Per Unit License of *% of the NICs
Manufacturer's Suggested Retail Price will be charged to KONICA for the use of
the PSIO interface. If KONICA would like third parties to develop NICs for the
KONICA printers, the third parties should contact PEERLESS to make arrangements
to license the PSIO interface.

2.4 OTHER PROVISIONS: KONICA shall pay royalties due on the Authorized KONICA
Devices shipped to KONICA OEMs hereunder in United States dollars. The Per Unit
License Fee obligation shall accrue at the time each Authorized KONICA Device
containing the Licensed Product(s) is shipped to a KONICA OEM, but shall be
reported and paid on a calendar quarter basis.

KONICA agrees to make such report within * (*) days following the end of each
calendar quarter, and make payment within * (*) days following the end of each
calendar quarter, commencing with the date of first shipment and continuing
until KONICA discontinues shipping the Authorized KONICA Device containing
Licensed Product(s). KONICA will notify in writing PEERLESS at the time of the
discontinuance of the Authorized KONICA Device. KONICA will also provide
PEERLESS each quarter a rolling monthly forecast for the subsequent six months
of the Authorized KONICA Devices containing the Licensed Product(s).

License fees for the PCL fonts and font scaling technology are not included in
the KONICA Per Unit License Fees outlined above. These fees must be negotiated
with, and paid directly to, Bitstream an/or the Agfa Corporation.

2.5 BLOCK LICENSE: Without limiting any of KONICA's rights under the MTLA, and
subject to the provisions of this LSA #3 as well as the payment of all
applicable Per Unit License Fees as stated in Exhibit C herein for the term of
such license, PEERLESS grants to KONICA a non-exclusive and non-transferable
Block License for the distribution of the Licensed Products in Object Code
format only as contained in the Authorized KONICA Devices that are identified in
this Section 2.5.2 below:

    2.5.1 Block License Payment. PEERLESS has granted KONICA a Block License
    for PEERLESS Licensed Products contained in the Authorized KONICA Devices.
    This Block License shall be granted upon the non-refundable,
    non-transferable and noncreditable payment of U.S.$ * (*dollars), due and
    payable as of * of this LSA #3. This Block License Payment shall be paid on
    the following dates:

    a) Payment of U.S.$ * (* dollars) upon *.

    b) Payment of U.S.$ * (* dollars) on *.

    c) Payment of U.S.$ * (* dollars) on *.

    d) Payment of U.S.$ * (* dollars) on *.

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

--------------------------------------------------------------------------------
                                  Page 9 of 12        Initials:  PEERLESS _____;
                                                                   KONICA _____

<PAGE>
2.5.2  Block License Terms and Conditions. The terms and conditions of the Block
License granted to KONICA are as follows:

       a)      The application of the Block License shall apply to the use of
          the following named PEERLESS Licensed Products: PEERLESSPageTM;
          PEERLESSPRINT(R)5E; PEERLESSPRINT(R)6; PEERLESS PRINT(R)5E and 6
          Drivers for Windows 3.1/95/98 and NT 4.0; and Adobe PostScript(R)3TM;
          and Adobe Kanji fonts.

       b)      The following named KONICA Authorized Devices, including those
          which have been renamed by KONICA Authorized OEM Remarketers, maybe
          distributed with the following reduced recurring Per Unit License Fee
          for each Object Code copy of the named PEERLESS Licensed Products
          distributed as set out in Table 2:
<TABLE>
<CAPTION>
                                     TABLE 2 - PER UNIT LICENSE FEES (U.S. DOLLARS
---------------------------------------------------------------------------------------------------------------
       KONICA             PEERLESSPage(TM)   PEERLESSPRINT(R)5E & 6     PEERLESSPRINT(R)          Adobe
     AUTHORIZED          Imaging System                              Drivers (for Windows    PostScript(R)3(TM)as
       DEVICE                                                         3.1/95/98 & NT4.0)    option (inclusive
                                                                                               of Drivers)
---------------------------------------------------------------------------------------------------------------
<S>                      <C>                      <C>                                         <C>
   PS-361J                     $*                     N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
   PS-331                      $*                     N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
   PS-331J                     $*                     N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
   IP-304                      $*                      $*                     $*                   N/A
---------------------------------------------------------------------------------------------------------------
   PS-332                      N/A                    N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
   PS-332J                     $*                     N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
   IP-431                      $*                      $*                     $*                   N/A
---------------------------------------------------------------------------------------------------------------
   PS-342                      N/A                    N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
   PS-342J                     $*                     N/A                     N/A                    $*
---------------------------------------------------------------------------------------------------------------
</TABLE>
       c)      KONICA will apply the above stated recurring Per Unit License Fee
          to the actual number of Authorized KONICA Devices shipped which
          contain the Object Code copies of the PEERLESS Licensed Products set
          out in 2.5.2 (a) above, and will thus calculate the equivalent earned
          recurring license fee.

       d)      The recurring license fees stated in 2.5.2 b) shall apply the
          equivalent earned recurring Per Unit License Fee equals U.S. $*
          (*dollars),

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

          i)   The parties agree that they will negotiate, in good faith, a
                    future Block License structure reflecting similar discount
                    structures as contained herein; or

          ii)  KONICA, at its sole discretion, decides not to purchase an
                    additional Block License, the recurring Per Unit License
                    Fees remunerated in Paragraph 2.1 herein shall apply.

       f)      The Block License is payable to PEERLESS notwithstanding that
          Adobe does not certify the Authorized KONICA Device. Additionally,
          none or any portion of the Block License Fee is refundable or
          transferable if the Block License is not completely credited or
          applied as set out hereinabove.

* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.
--------------------------------------------------------------------------------
                                 Page 10 of 12        Initials:  PEERLESS _____;
                                                                   KONICA _____

<PAGE>

          g)   The Block License and the Block License Fee are non-refundable,
               non-creditable and non-transferable to any other Authorized
               KONICA Device other than those identified in Exhibit C, Section
               1.0 herein.

--------------------------------------------------------------------------------
                                 Page 11 of 12        Initials:  PEERLESS _____;
                                                                   KONICA _____

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