Document:

<PAGE>

                                                                   Exhibit 10.54

                           LICENSE SYSTEM ADDENDUM #6

                                       to

                       MASTER TECHNOLOGY LICENSE AGREEMENT

                                     between

                             SEIKO EPSON CORPORATION

                                       and

                     PEERLESS SYSTEMS IMAGING PRODUCTS, INC.

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

<PAGE>

SEC/PSIP Licensed system Addendum #6                                CONFIDENTIAL
--------------------------------------------------------------------------------

                      LICENSED SYSTEM ADDENDUM #6 TO MASTER
                       TECHNOLOGY LICENSE AGREEMENT DATED
                                  APRIL 1, 2000

The Licensed System Addendum #6 (hereinafter referred to as "this LSA #6") is
entered into as of April 30, 2002 (the "Effective Date") by and between SEIKO
EPSON Corporation, a Japanese corporation, with offices at 80 Harashinden,
Hirooka Shiojirishi, Naganoken 399-0785 Japan (hereinafter referred to as "SEC")
and PEERLESS Systems Imaging Products Inc., a Washington corporation, with
offices at 20415 72nd Ave. S., Suite 400, Kent, WA 98032 (hereinafter referred
to as "PSIP"), a wholly owned subsidiary of PEERLESS Systems Corporation, a
Delaware corporation, pursuant to the provisions of the Master Technology
License Agreement between SEC and PSIP (hereinafter referred to collectively as
"the Parties") dated April 1, 2000 (hereinafter referred to as the "MTLA"). That
MTLA provides that SEC may be granted a license of certain Licensed Products
from PSIP pursuant to one or more Addenda to the MTLA executed by SEC and PSIP.
This LSA #6 is hereby made part thereof, and the terms and conditions of the
MTLA are incorporated by reference herein. To the extent there are any
inconsistencies between this LSA #6 and the MTLA or the LSA #1, LSA #2, LSA #3,
LSA #4, or LSA #5, this LSA #6 shall control.

This LSA #6 includes the following Exhibits:

         Exhibit A - Description of License Granted
         Exhibit B - Payments and Payment Terms
         Attachment #1 - Summary of Authorized SEC Devices

IN WITNESS WHEREOF, the Parties have executed this LSA #6 as of the Effective
Date.

SEIKO EPSON CORPORATION                         PEERLESS SYSTEMS IMAGING
                                                PRODUCTS, INC.

By:                                             By:

/s/ Kazuhiko Iida                               /s/ Ron Davis
--------------------------------                --------------------------
(Authorized Signature)                          (Authorized Signature)
Name:  Kazuhiko Iida                            Name:  Ron Davis
Title:  General Manager                         Title:  Vice President, Sales
Date:  April __, 2002                           Date:  April __, 2002

--------------------------------------------------------------------------------
Final (April 18, 2002)              Page 1 of 16     Initials: PSIP ___; SEC ___

<PAGE>

SEC/PSIP Licensed system Addendum #6                                CONFIDENTIAL
--------------------------------------------------------------------------------

                           LICENSED SYSTEM ADDENDUM #6

1.0 DEFINITION. All capitalized terms used herein shall have the meaning
specified in this LSA #6 or, if not defined herein, then the meaning specified
in the MTLA. For the terms that are defined in this Section 1 and in the MTLA,
or LSA #1 or LSA #2 or LSA #3 or LSA #4 or LSA #5, 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 a SEC product incorporating PSIP Materials 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 SEC's shipment of that product to SEC's customer.

1.2 "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 SEC under this LSA #6.

1.3 "PSIP Materials" includes anything designated as such under the MTLA and,
without limiting the foregoing, any of the foregoing incorporated in our
underlying any Derivative Work created thereof.

1.4 "Bundled Product" in the context of this LSA #6 means that every unit of the
designated Authorized SEC Devices shipped will contain Adobe PostScript(R)3(TM).

1.5 "Unbundled Product" in the contest of this LSA #6 means every one of the
designated Authorized SEC Devices shipped will contain Adobe PostScript(R)3(TM).
In the event that the Authorized SEC Device is offered for sale with Adobe
PostScript(R)3(TM) both as an option and as a standard feature (in this case as
two version of the same Authorized SEC Device); both versions will be considered
as "Unbundled Products".

2.0 ADDITIONAL LICENSE GRANTED. Unless specifically set out herein, SEC is given
no rights 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.

3.0 DELIVERABLES. SEC agrees that PSIP has transmitted to an Authorized SEC
Facility one (1) copy of the Machine Executable Code and related standard
documentation for each Authorized SEC Device identified herein.

4.0 TERM AND TERMINATION. The term of this LSA #6 shall commence upon the
Effective Date and shall be contemporaneous with the term of the License under
the MTLA.

5.0 INDEMNIFICATION. SEC shall have the right, subject to the MTLA, LSA #1, LSA
#2, LSA #3, LSA #4, LSA #5 and this LSA #6, to control its development,
manufacturing and marketing efforts. Accordingly, SEC shall, except to the
extent that PSIP has indemnified SEC pursuant to the MTLA, indemnify and hold
PSIP harmless from any and all losses or damages (including without limitation
attorney's fees and costs and all third party claims or demands of

--------------------------------------------------------------------------------
Final (April 18, 2002)             Page 2 of 16      Initials: PSIP ___; SEC ___

<PAGE>

SEC/PSIP Licensed system Addendum #6                                CONFIDENTIAL
--------------------------------------------------------------------------------

any type whatsoever) arising out of, incurred in connection with or relating to
the SEC development, manufacturing and marketing of Authorized SEC devices.

6.0 PROPRIETARY RIGHTS AND CONFIDENTIALITY

6.1 PSIP shall own all title and proprietary rights, including without
limitation copyrights, patents and trade secret rights, in any PSIP Material,
including without limitation any portion thereof incorporated in or underlying
any Derivative Work created by SEC and any part or copy of any of the foregoing
in any form or media. In the case of all Derivative Work, PSIP shall continue to
own underlying Code and all proprietary rights thereto, and shall own the
Derivative Work as a whole and all proprietary rights thereto. PSIP shall own
such modifications per se and all proprietary rights thereto. SEC Shall have the
right and license to use such modifications per se to the same extent it is
licensed to use the Code in such respective formats as set forth elsewhere in
the MTLA, LSA #1, LSA #2, LSA #3, LSA #4, or LSA #5, and this LSA #6. The
foregoing ownership rights are subject to the Licenses set forth herein. Rights
not expressly granted to the SEC hereunder are reserved by the PSIP.

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

6.2 Without limiting any of SEC's obligations of confidentiality imposed
pursuant to the MTLA, SEC shall (i) specifically require any employee and
contractor of SEC to execute SEC's standard confidentiality and non-disclosure
agreement(s); (ii) notify PSIP promptly and in writing of any circumstances of
which SEC has knowledge regarding any possible use of or access to any
Confidential Information or any part thereof by any unauthorized person or
entity; and (iii) take and allow PSIP to take, at SEC's expense but under PSIP's
control, any legal or other action necessary to prevent or stop the access to or
use of the Confidential Information by any person or entity that has gained
access to the Confidential Information due to the fault or negligence of License
or any breach by SEC of the MTLA or this LSA #6.

6.3 Any breach by SEC of any of its obligations under the Section 6 shall be
considered to be Default of the provisions of the MTLA.

7.0 AUDIT RIGHTS. PSIP shall have the right, upon one reasonable prior notice,
to have one (1) of its employs walk through and inspect any SEC Facility to
determine whether SEC employs adequate security procedures as required in
Paragraph 6.2 of this LSA #6. Any such audit shall take place during business
hours at SEC's location and shall be conducted in a manner that does not
unreasonably disrupt the business operations of SEC. PSIP shall bear the expense
of any such audit. PSIP shall comply with SEC's instructions during the audit of
the SEC Facility.

///End

--------------------------------------------------------------------------------
Final (April 18, 2002)              Page 3 of 16     Initials: PSIP ___; SEC ___

<PAGE>

SEC/PSIP Licensed system Addendum #6                                CONFIDENTIAL
--------------------------------------------------------------------------------

                   EXHIBIT A - DESCRIPTION OF LICENSE GRANTED

1.0 PSIP Licensed Products: SEC is authorized to distribute the following PSIP
Licensed Product(s) listed below which it has received in Machine Executable
Copy form:

         1.1  PSIP API(TM) specification as used in connection with the SEC
              Seiko Page Printer Platform (SPPP) interface.

         1.2  Machine executable Adobe PostScript(R)3(TM) code including:
                     1.2.1     Adobe Acrobat(R) Reader
                     1.2.2     Adobe Driver Software (Current Release)
                     1.2.3     Adobe Type Manager(R)
                     1.2.4     Bitmap fonts

2.0 Authorized SEC Devices: SEC is authorized to distribute the PSIP Licensed
Products in object code format only solely in the following Authorized SEC
Devices:

         2.1 Those Authorized SEC Devices named in Attachment #1 (Summary for
         Authorized SEC Devices) to LSA #1 dated July 13, 2000, to the MTLA.
         Specifically, the SEC designated products, *

         2.2 Those Authorized SEC Devices named in Attachment #1 (Summary for
         Authorized Devices) to LSA #2 dated October 31, 2000 to the MTLA.
         Specifically, the SEC designated products, *

         2.3 Those Authorized SEC Devices named in Attachment #1 (Summary for
         Authorized Devices) to LSA #3 to the MTLA. Specifically, the SEC
         designated products *

         2.4 Those Authorized SEC Devices named in Attachment #1 (Summary for
         Authorized Devices) to LSA #4 to the MTLA. Specifically, the SEC
         designated products *

         2.5 Those Authorized SEC Devices named in Attachment #1 (Summary for
         Authorized Devices) to LSA #5 to the MTLA. Specifically, the SEC
         designated products *

         2.6 Those Authorized SEC Devices named in Attachment #1 (Summary for
         Authorized Devices) to LSA #6 to the MTLA. Specifically, the SEC
         designated products *

It is understood between the Parties that SEC has delivered to PSIP the latest
technical specifications for each of the Authorized SEC Devices as of the date
of execution of the LSA #6.

3.0 Authorized SEC Facility: SEC may store and use the PSIP Materials only at
the following Authorized SEC Facility:

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

--------------------------------------------------------------------------------
Final (April 18, 2002)              Page 4 of 16     Initials: PSIP ___; SEC ___

<PAGE>

SEC/PSIP Licensed system Addendum #6                                CONFIDENTIAL
--------------------------------------------------------------------------------

         Hirooka Office: 80, Harashinden, Hirooka, Shioijirishi, Nagano-ken,
399-0785, Japan.

This Authorized SEC Facility may be changed with the written approval of PSIP,
which approval shall not be unreasonably withheld. When the Authorized SEC
Facility above is sought to be changed, SEC will notify PSIP in writing of the
substitute Authorized SEC Facility's name and address at least thirty (30) days
in advance of said change. When SEC stores the duplicated PSIP Materials at a
more than one Authorized SEC Facility, then any additional Authorized SEC
Facility shall be deemed to be an Authorized SEC Facility thirty (30) days after
SEC both (i) has notified PSIP in writing of the address of such additional
facility and PSIPs approval has been granted, and (ii) has paid PSIP's then
standard fee for adding an Authorized SEC Facility.

         3.1 Reproduction Sites. SEC may reproduce the PSIP Material in machine
         executable code format (object code) for each of the above designated
         Authorized SEC Devices at any SEC designated manufacturing facility
         worldwide.

         ///End

--------------------------------------------------------------------------------
Final (April 18, 2002)             Page 5 of 16      Initials: PSIP ___; SEC ___

<PAGE>

SEC / PSIP Licensed system Addendum #6                              CONFIDENTIAL
--------------------------------------------------------------------------------

                     EXHIBIT B - PAYMENTS AND PAYMENT TERMS

1.0 PER UNIT LICENSE FEES: For each Authorized SEC Device shipped pursuant to
LSA #1, LSA #2, LSA #3, LSA #4, LSA #5 and this LSA #6, PSIP and SEC agree that
there shall be a non-refundable, non-transferable and non-creditable Per Unit
License Fee due and paid to PSIP. The amount of the Per Unit License Fees for
each Authorized SEC Device developed hereunder is shown below. The percentages
in the following tables are based on the Suggested Retail Price (SRP) of the
product. In the event that a relevant SRP in Japanese, Yen shall be established
in Japan, the SRP shall be converted into U.S. dollars at TTM rate equal to the
average exchange rates for the appropriate currency issued by The Fuji Bank,
Limited at the end of the first and last days of the relevant quarterly
accounting period (or the first business day thereafter if such day is a Sunday
or other non-business day. In the event that a legal SRP cannot be established
outside the United States, the SRP of the Authorized SEC Device in the United
States will be used.

1.1 Per Unit LICENSE FEES: The recurring Per Unit License Fee is the fee that
PSIP charges SEC for the right to use PSIP's Licensed Products in each
Authorized SEC Device shipped by SEC is detailed below.

         1.1.1    License Fees for Authorized SEC Devices authorized in LSA #1.

<TABLE>
<CAPTION>
         -----------------------------------------------------------------------------------------------
                       Table #1 - Per Unit License Fees for Japanese Character Version
                               (Inclusive of Roman Character Font License Fees)
                              (Exclusive of Japanese Character Font License Fees
         -----------------------------------------------------------------------------------------------
                               Royalty for Authorized SEC Device      Royalty for Optional PostScript
                                           (Bundled)                          Kit (Unbundled)
         -----------------------------------------------------------------------------------------------
             <S>               <C>                                    <C>
                 *                            *%                                   *%
         -----------------------------------------------------------------------------------------------
                 *                            *%                                   *%
         -----------------------------------------------------------------------------------------------

<CAPTION>

         -----------------------------------------------------------------------------------------------
                        Table #2 - Per Unit License Fees for Roman Character Version
                              (Inclusive of Roman Character Font License Fees)
         -----------------------------------------------------------------------------------------------
                               Royalty for Authorized SEC Device      Royalty for Optional PostScript
                                             (Bundled)                          Kit (Unbundled)
         -----------------------------------------------------------------------------------------------
             <S>               <C>                                    <C>
                    *                            *%                                   *%
         -----------------------------------------------------------------------------------------------
                    *                            *%                                   *%
         -----------------------------------------------------------------------------------------------
</TABLE>

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

--------------------------------------------------------------------------------
Final (April 18, 2002)           Page 6 of 16        Initials: PSIP ___; SEC ___

<PAGE>

SEC/PSIP Licensed system Addendum #6                                CONFIDENTIAL
--------------------------------------------------------------------------------

     ---------------------------------------------------------------------------
         Table #3 - Per Unit Incremental License Fee for Japanese Character
                                PostScript Font - Heisei Font Set
                                       (Two font Minimum)

     ---------------------------------------------------------------------------
     Japanese SRP for Each Authorized              Per Heisei Typeface in U.S. $
               SEC Device
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------

     ---------------------------------------------------------------------------
       Table #4 - Per Unit Incremental License Fee for Japanese Character
                       PostScript Font - Morisawa Font Set
                               (Two font Minimum)
     ---------------------------------------------------------------------------
        Japanese SRP for Each Authorized          Per Heisei Typeface in U.S. $
                  SEC Device
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------
                       *                                        $*
     ---------------------------------------------------------------------------

             1.1.1.1 *

***  means greater than
**   means less than

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

--------------------------------------------------------------------------------
Final (April 18, 2002)             Page 7 of 16      Initials: PSIP ___; SEC ___

<PAGE>

SEC/PSIP Licensed system Addendum #6                                CONFIDENTIAL
--------------------------------------------------------------------------------

    ----------------------------------------------------------------------------
                           Table #5 - *

          1.1.1.2 *

     1.1.2 License Fees for Authorized SEC Devices Authorized in LSA #2, LSA #3,
     LSA #4, LSA #5 and this LSA #6.

<TABLE>
<CAPTION>
     ----------------------------------------------------------------------------------
                             Table #6 - Per Unit License Fees
                      (Inclusive of Roman Character Font License Fees)
                    (Exclusive of Japanese Character Font License Fees
     ----------------------------------------------------------------------------------
                        Royalty for Authorized SEC       Royalty for Optional
                             Device (Bundled)          PostScript Kit (Unbundled)
     ----------------------------------------------------------------------------------
     <S>                <C>                           <C>
             *            *% (minimum of U.S.$ *)       *% (minimum of U.S.$ *)
     ----------------------------------------------------------------------------------
             *            *% (minimum of U.S.$ *)       *% (minimum of U.S.$ *)
     ----------------------------------------------------------------------------------
</TABLE>

** means less than
*** means greater than

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

--------------------------------------------------------------------------------
Final (April 18, 2002)            Page 8 of 16       Initials: PSIP ___; SEC ___

<PAGE>

SEC / PSIP Licensed system Addendum #6                              CONFIDENTIAL
--------------------------------------------------------------------------------

    ----------------------------------------------------------------------------
       Table #7 - Per Unit Incremental License Fee for Japanese Character
                        PostScript Font - Heisei Font Set

                               (Two font Minimum)

<TABLE>
<CAPTION>
    --------------------------------------------------------------------------------------------
                     Japanese SRP for Each Authorized          Per Heisei Typeface in U.S. $
                               SEC Device
    --------------------------------------------------------------------------------------------
    <S>                                                        <C>
                                       *                                       $*
    --------------------------------------------------------------------------------------------
                                       *                                       $*
    --------------------------------------------------------------------------------------------
                                       *                                       $*
    --------------------------------------------------------------------------------------------
                                       *                                       $*
    --------------------------------------------------------------------------------------------
                                       *                                       $*
    --------------------------------------------------------------------------------------------
                                       *                                       $*
    --------------------------------------------------------------------------------------------
                                       *                                       $*
    --------------------------------------------------------------------------------------------
                                       *                                       $*
    --------------------------------------------------------------------------------------------
                                       *                                       $*
    --------------------------------------------------------------------------------------------
                                       *                                       $*
    --------------------------------------------------------------------------------------------
</TABLE>

    ----------------------------------------------------------------------------
       Table #8 - Per Unit Incremental License Fee for Japanese Character
                       PostScript Font - Morisawa Font Set

                               (Two font Minimum)
<TABLE>
<CAPTION>
    --------------------------------------------------------------------------------------------
                     Japanese SRP for Each Authorized          Per Heisei Typeface in U.S. $
                               SEC Device
    --------------------------------------------------------------------------------------------
    <S>                                                                    <C>
                                       *                                    $*
    --------------------------------------------------------------------------------------------
                                       *                                    $*
    --------------------------------------------------------------------------------------------
                                       *                                    $*
    --------------------------------------------------------------------------------------------
                                       *                                    $*
    --------------------------------------------------------------------------------------------
                                       *                                    $*
    --------------------------------------------------------------------------------------------
                                       *                                    $*
    --------------------------------------------------------------------------------------------
                                       *                                    $*
    --------------------------------------------------------------------------------------------
                                       *                                    $*
    --------------------------------------------------------------------------------------------
                                       *                                    $*
    --------------------------------------------------------------------------------------------
                                       *                                    $*
    --------------------------------------------------------------------------------------------
</TABLE>

*** means more than
**  less than

     1.1.2.1 *

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

--------------------------------------------------------------------------------
Final (April 18, 2002)            Page 9 of 16       Initials: PSIP ___; SEC ___

<PAGE>

SEC / PSIP Licensed system Addendum #6                              CONFIDENTIAL
--------------------------------------------------------------------------------

                  --------------------------------------------------------------
                                         Table #9 - *

*** means more than
**  less than

          1.1.2.2 *

1.2 BLOCK LICENSE.

     1.2.1 Block License Grant. In lieu of paying the required Per Unit Royalty
     Fee on an "as incurred" basis, PSIP has granted SEC a Block License under
     which SEC may offset the Per Unit Royalties incurred by the Authorized SEC
     Devices identified in Exhibit A, Section 2 herein; provided that, SEC may
     not offset the Per Unit Royalties incurred by any additional Authorized SEC
     Devices to be granted under a license of future Licensed System Addenda to
     be attached to the MTLA.

     1.2.2 Block License Payment. PSIP has granted SEC a Block License for PSIP
     Licensed Products contained in the Authorized SEC Devices. This Block
     License will be granted for non-refundable, non-transferable and
     non-creditable payment of U.S.$ * (* dollars) due and payable as of the
     execution date of this LSA#5. This Block License Payment shall be paid
     within * after execution of this LSA#5.

     1.2.3 Block License Terms and Conditions. The terms and conditions of the
     PSIP granted Block License to SEC are as follows.

     a)   The utilization of the Block License shall apply to the use of all
          PSIP Licensed Products named in LSA #1, LSA #2, LSA #3, LSA #4 and
          this LSA #5 (as listed in Exhibit A, Section 2.0 herein).

     b)   For the distribution of the Authorized SEC Devices named in LSA #1,
          SEC may apply, at its sole discretion, Per Unit License Fees for each
          object code copy of the PSIP Licensed Products as set forth in Exhibit
          B, Section 1.1.1 hereof or those fees as set out below in Exhibit B,
          Section 1.2.4 hereof. For the distribution of the Authorized SEC
          Devices named in LSA# 2, LSA #3, LSA #4 or this LSA #5,

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

--------------------------------------------------------------------------------
Final (April 18, 2002)             Page 10 of 16    Initials: PSIP ___; SEC ___

<PAGE>

SEC / PSIP Licensed system Addendum #6                          CONFIDENTIAL
--------------------------------------------------------------------------------

          SEC may apply the reduced Per Unit License Fees for each object code
          copy of the PSIP Licensed Product as set out below in Exhibit B,
          Section 1.2.4 herein.

     c)   SEC will apply the above stated Per Unit Recurring License Fee to the
          actual number of Authorized SEC Devices shipped which contain the
          object code copies of the PSIP Licensed Products and will thus
          calculate the equivalent earned Per Unit Recurring License Fee.

     d)   The Per Unit Recurring License Fees stated in Exhibit B, Section 1.1.1
          (solely for Authorized SEC Devices licensed in LSA#1) and/or Section
          1.2.4 below, shall apply until the crediting of the equivalent earned
          recurring license fee equals U.S.$ * (*dollars).

     e)   Upon exhaustion of the U.S.$ * Block License plus any Additional Block
          Licenses for each new printer as set out below, in any, at SEC's
          option, the following actions may take place:

          i)   SEC, at its sole discretion, may purchase future Block License(s)
               in the amount of U.S. $* (* dollars) under the same terms and
               conditions as enumerated herein; provided however, that PSIP and
               SEC shall negotiate to reduce Per Unit License Fees for all
               Authorized SEC Devices to be applied to those future Block
               Licenses from any previous Per Unit License Fee. If SEC has
               executed additional Block License(s) in which the Authorized SEC
               Devices named in LSA #1, LSA #2, LSA #3, LSA #4 and this LSA #5
               are in part or in total named, then the Per Unit Recurring
               License Fee for such Authorized SEC Devices may be credited
               against those additional granted Block License(s).

          ii)  SEC, at its sole discretion, may purchase additional Block
               License(s) in the amount of U.S. $* (* dollars) each under the
               same terms and conditions as enumerated herein.

          iii) SEC, at its sole discretion may decide not to purchase an
               additional Block License as set forth in e) i) or ii) above, in
               which case the recurring Per Unit License Fee for each Authorized
               SEC Device named in LSA #1 shall revert to the rate defined in
               Exhibit B, Section 1.1 hereof and those fees for each Authorized
               SEC Device named in LSA #2, LSA #3, LSA #4 and this LSA #5 would
               revert to rate as defined in Exhibit B, Section 1.1.2 herein.

     1.2.4 License Fees for Authorized SEC Devices Authorized in LSA #1, LSA #2,
     LSA #3, LSA #4 and LSA #5 under this Block License. In the case of
     Authorized SEC Devices authorized in LSA #1, SEC may, at its sole
     discretion use either the Per Unit License Fees enumerated in Section 1.1.1
     or below under the Block License:

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

--------------------------------------------------------------------------------
Final (April 18, 2002)         Page 11 of 16      Initials: PSIP ___; SEC ___

<PAGE>

SEC / PSIP Licensed system Addendum #6                              CONFIDENTIAL
--------------------------------------------------------------------------------

         ---------------------------------------------------------------------
                        Table #10 - Per Unit License Fees
                (Inclusive of Roman Character Font License Fees)
               (Exclusive of Japanese Character Font License Fees)
         ---------------------------------------------------------------------
                 Royalty for Licensed System         Royalty for Optional
                         (Bundled)                PostScript Kit (Unbundled)
         ---------------------------------------------------------------------
           *             *% (minimum of U.S.$ *)        *% (minimum of
                                                            U.S.$ *)
         ---------------------------------------------------------------------
           *          a) *% (minimum of $*) for         *% (minimum of U.S.
                         products with an SRP of        $*)
                         U.S. $* or less.
                      b) *% for products with an
                         SRP greater than $*.
         ---------------------------------------------------------------------

<TABLE>
<CAPTION>
  --------------------------------------------------------------------------------------
           Table #11 - Per Unit Incremental License Fee for Japanese Character
                            PostScript Font - Heisei Font Set.
                                    (Two font Minimum)
  --------------------------------------------------------------------------------------
         Japanese SRP for Each Licensed System         Per Heisei Typeface in U.S. $
  --------------------------------------------------------------------------------------
<S>                                                    <C>
                           *                                           $*
  --------------------------------------------------------------------------------------
                           *                                           $*
  --------------------------------------------------------------------------------------
                           *                                           $*
  --------------------------------------------------------------------------------------
                           *                                           $*
  --------------------------------------------------------------------------------------
                           *                                           $*
  --------------------------------------------------------------------------------------
                           *                                           $*
  --------------------------------------------------------------------------------------
                           *                                           $*
  --------------------------------------------------------------------------------------
                           *                                           $*
  --------------------------------------------------------------------------------------
                           *                                           $*
  --------------------------------------------------------------------------------------
                           *                                           $*
  --------------------------------------------------------------------------------------

<CAPTION>
  --------------------------------------------------------------------------------------
           Table #12 - Per Unit Incremental License Fee for Japanese Character
                           PostScript Font - Morisawa Font Set.
                                    (Two font Minimum)
  --------------------------------------------------------------------------------------
         Japanese SRP for Each Licensed System         Per Morisawa Typeface in U.S. $
  --------------------------------------------------------------------------------------
<S>                                                    <C>
                          *                                            $*
  --------------------------------------------------------------------------------------
                          *                                            $*
  --------------------------------------------------------------------------------------
                          *                                            $*
  --------------------------------------------------------------------------------------
                          *                                            $*
  --------------------------------------------------------------------------------------
                          *                                            $*
  --------------------------------------------------------------------------------------
                          *                                            $*
  --------------------------------------------------------------------------------------
                          *                                            $*
  --------------------------------------------------------------------------------------
                          *                                            $*
  --------------------------------------------------------------------------------------
                          *                                            $*
  --------------------------------------------------------------------------------------
</TABLE>

**  means less than
*** means greater than

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

--------------------------------------------------------------------------------
Final (April 18, 2002)         Page 12 of 16       Initials: PSIP ___; SEC ___

<PAGE>

SEC / PSIP Licensed system Addendum #6                              CONFIDENTIAL
--------------------------------------------------------------------------------

    ----------------------------------------------------------------------------
                   *                                           $*
    ----------------------------------------------------------------------------

          1.2.4.1 *

    ----------------------------------------------------------------------------
                              Table #13 - *

** means less than
*** means greater than

          1.2.4.2 *

1.3 ADDITIONAL BLOCK LICENSE

     1.3.1 Additional Block License Grant. If SEC wishes to add new Authorized
     SEC Devices using new printer engine ("New Authorized SEC Devices") and/or
     those devices using certain engines previously covered under previously
     executed LSAs, PSIP and SEC agree to enter into new LSA to be attached to
     the MTLA and PSIP shall grant additional Block Licenses ("additional Block
     License") for New Authorized SEC Devices under the new LSA and the
     following terms and conditions:

     a)   Additional Block Licenses will be issued in the denomination of U.S.
          $* (*dollars) for one or more New Authorized SEC Device. (For example,
          if the Additional Block License names three (3) new Authorized SEC
          Devices in an applicable LSA, and one (1) printer engine is defined
          for all three (3) Authorized SEC Devices, then the Additional Block
          License will be denominated at U.S. $*. if the three (3) new
          Authorized SEC Devices use two (2) new printer engines,

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

--------------------------------------------------------------------------------
Final (April 18, 2002)           Page 13 of 16       Initials: PSIP ___; SEC ___

<PAGE>

SEC / PSIP Licensed system Addendum #6                              CONFIDENTIAL
--------------------------------------------------------------------------------

               then the Additional Block License will be denominated at U.S. $*,
               and if the three (3) new Authorized SEC Devices use certain
               engine previously covered under previously executed LSA, no
               additional Block License shall be required for such new
               Authorized SEC Devices provided that, Per Unit License Fees set
               out in Exhibit B, Section 1.2.4 hereof shall be applied to such
               new Authorized SEC Devices, and such fees paid to PSIP under the
               terms of the MTLA).

          b)   For the distribution of New Authorized SEC Devices, SEC may apply
               the reduced Per Unit License Fees as set out in Exhibit B,
               Section 1.2.4 hereof to reduce any Additional Block License
               payments. Such Additional Block License will also cover the Per
               Unit License Fees for all Authorized SEC Devices licenses under
               previously executed LSA and under current LSA.

          c)   SEC, at its sole discretion, may decide not to purchase
               Additional Block License as set forth in Section 1.3.1 a) and b)
               above, in which case the rate as defined in Exhibit B, Section
               1.1.2 hereof shall be applied as the Per Unit License Fee for
               each New Authorized SEC Device.

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

--------------------------------------------------------------------------------
Final (April 18, 2002)           Page 14 of 16       Initials: PSIP ___; SEC ___

<PAGE>

SEC / PSIP Licensed system Addendum #6                              CONFIDENTIAL
--------------------------------------------------------------------------------

               ATTACHMENT #1 - SUMMARY FOR AUTHORIZED SEC DEVICES

Following are product descriptions for the Authorized SECDevices licensed under
this LSA#6.
1.0 Milan-CG (W) (AcuLaser-C8600 (AL-C8600)) Printer System Summary
         1.1  Controller Design: *
         1.2  Controller CPU: *
         1.3  Operating System: *
         1.4  ROM Capacity: Code:  *
         1.5  ROM used by Adobe:  *
         1.6  RAM Capacity: *
         1.7  Standard Communications: *
         1.8  Optional Communications: *
         1.9  Marking Engine:  *
         1.10 Resolution: *
         1.11 Marking Engine Speed: *
         1.12 Color/Monochrome: *
         1.13 Paper Sizes: *
         1.14 Paper Sources:
                  1.14.1   *
                  1.14.2   *
                  1.14.3   *
                  1.14.4   *
         1.15 Paper output:  *
         1.16 User Interface: *
         1.17 Language Support:  *
         1.18 Typeface: *
         1.19 Other Adobe Software:  *

2.0 Milan-PC (AcuLaser-C4000 (AL-04000)) Printer Summary

         2.1  Controller Design: *
         2.2  Controller CPU: *
         2.3  Operating System: *
         2.4  ROM Capacity: *
         2.5  ROM used by Adobe, *
         2.6  RAM Capacity: *
         2.7  Standard Communications: *
         2.8  Optional Communications: *
         2.9  Marking Engine:  *
         2.10 Resolution: *

--------------------------------------------------------------------------------
Final (April 18, 2002)            Page 15 of 16      Initials: PSIP ___; SEC ___

<PAGE>

SEC/PSIP Licensed system Addendum #6                                CONFIDENTIAL
--------------------------------------------------------------------------------

         2.11 Marking Engine Speed:  *
              Paper 8ppm at A4 2.12 Color/Mono:  *
         2.13 Paper Sizes: *
         2.14 Paper Sources
                  2.14.1.  *
                  2.14.2   *
                  2.14.3.  *
                  2.14.4.  *
         2.15 Paper Output: *
         2.16 User Interface: *
         2.17 Language Support: *
         2.18 Typeface: *
         2.19 Other Adobe Software:  *

3.0 Milan-HB(EPL-6100) Printer Summary
         3.1  Controller Design: *
         3.2  Controller CPU: *
         3.3  Operating System: *
         3.4  ROM Capacity: *
         3.5  ROM used by *
         3.6  RAM Capacity: *
         3.7  Standard Communications: *
         3.8  Optional Communications: *
         3.9 Marking Engine:  *
         3.10 Resolution:  *
         3.11 Marking engine speed:  *
         3.12 Color/Mono: *
         3.13 Paper Sizes: *
         3.14 Paper Sources
                  3.14.1.  *
                  3.14.2.  *
                  3.14.3.  *
         3.15 Paper output: *
         3.16 User Interface: *
         3.17 Language Support: *
         3.18 Typeface: *
         3.19 Other Adobe Software: *

--------------------------------------------------------------------------------
Final (April 18, 2002)            Page 16 of 16      Initials: PSIP ___; SEC ___

<PAGE>

SEC/PSIP Amendment #1 (LSA #6)                                      CONFIDENTIAL
--------------------------------------------------------------------------------

                 AMENDMENT #1 TO THE LICENSED SYSTEM ADDENDUM #6

This Amendment #1 dated July 1, 2002 (hereinafter referred to as "Amendment #1)
to Licensed System Addendum #6 dated April 30, 2002 ("LSA #6") is entered into
by and between SEIKO EPSON Corporation, a Japanese corporation, (hereinafter
referred to as "SEC") and Peerless Systems Imaging Products, Inc., a Washington
corporation, (hereinafter referred to as "PSIP") pursuant to the provisions of
the Master Technology License Agreement between those parties dated April 1,
2000 (hereinafter referred to as the "MTLA"). This Amendment # 1 is hereby made
a part thereof, and the terms and conditions of the MTLA and LSA #6 thereto are
incorporated by reference herein.

WHEREAS, SEC and PSIP now wish that PSIP grants to SEC an additional Block
License set forth in Section 1.2 of Exhibit B of LSA #6 for use in the
Authorized SEC Devices identified in Exhibit A, Section 2 of LSA #6.

NOW THEREFORE, SEC and PSIP hereto agree as follows effective July 1, 2002
("Effective Date"):

     1.  Subject to the payment of all fees herein, PSIP grants to SEC an
         additional Block License under the same terms and conditions of LSA #6
         in the amount of * dollars (U.S.$ *).

     2.  In exchange for this additional Block License, SEC agrees to pay PSIP *
         dollars (U.S.$ *) which shall be due and payable within sixty (60) days
         of the execution of this Amendment#1. PSIP agrees that such payments
         require the receipt by SEC of original invoices and the required Tax
         Application Form for Income Tax Convention with PSIP's signature. SEC
         will provide the required Tax Application Form for Income Tax
         Convention and PSIP will complete as appropriate and return the form to
         SEC. Payments made hereunder are non-cancelable, non-refundable, and
         non-transferable.

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

IN WITNESS WHEREOF, the Parties hereto have executed this Amendment #1 as of the
Effective Date.

SEIKO EPSON CORPORATION                     PEERLESS SYSTEMS CORPORATION
By:                                         By:

/s/  Kazuhiko Iida                          /s/ Ron Davis
----------------------------------          -----------------------------------
Name:  Kazuhiko Iida                        Name:  Ron Davis
Title:  General Manager                     Title:  Vice President of Sales
Date:  July 23, 2002                        Date:  July 11, 2002

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

--------------------------------------------------------------------------------
Final (July 11, 2002)             Page 1 of 1        Initials: SEC ___; PSIP ___<PAGE>
                                                                   Exhibit 10.55

                                 NEST OFFICE SDK

                       DEVELOPMENT AND RESELLER AGREEMENT

                      STATEMENT OF WORK 8 to BDA No. N-A-1

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>

                                 NEST OFFICE SDK
                       DEVELOPMENT AND RESELLER AGREEMENT
                      STATEMENT OF WORK 8 to BDA No. N-A-1

1.       PURPOSE. Novell develops and markets the NEST Office SDKs, and under
         written agreements authorizes third parties to create and distribute
         network enabled devices containing NEST Office SDK technologies. The
         mission of Peerless Systems Networking ("PSN"), formerly Auco, Inc. and
         now a wholly-owned subsidiary of Peerless Systems Corporation, is to
         provide the best tools and most efficient services available to help
         office peripheral manufacturers include customized networking support
         in their products. This SOW 8 sets forth the terms and conditions under
         which PSN will be appointed as a distributor of the NEST Office SDK.

2.       DEFINITIONS.

         a.       "Add-On Product" shall mean a product that does not include
                  Licensed Work Code, but which utilizes APIs of the NEST Office
                  SDK.

         b.       "Authentication Code" shall mean the following modules of the
                  Licensed Works which Novell licenses from third parties
                  subject to certain restrictions set forth in Section 4.a.i
                  below: * from the Licensed Works so identified by Novell upon
                  receipt of notice by Novell, which notice Novell will make
                  diligent efforts to provide to PSN upon delivery of the
                  Authentication Code to PSN.

         c.       "Effective Date" shall mean the later of dates on which SOW 8
                  is executed by a duly authorizedrepresentative of PSN or
                  Novell.

         d.       "Harmful Code" shall mean any Binary Code or Source Code
                  constructed with the ability to damage, interfere with or
                  otherwise adversely affect computer programs, data files, or
                  hardware without the consent or intent of the computer user.
                  This definition includes, but is not limited to,
                  self-replacing and self-propagating programming instructions
                  commonly called "viruses" and "worms."

         e.       "Licensed Works" shall mean the NEST Office SDK version 1.0.

         f.       "NEST Program Agreement" shall mean the standard agreement
                  whereby PSN makes the NEST Office SDKs available to third
                  parties as permitted under this SOW 8. The version of the NEST
                  Program Agreement current as of the Effective Date is attached
                  hereto as Exhibit C.

         g.       "NEST Trademark" shall mean the NEST trademark including all
                  applications and registration therefore.

* 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.

--------------------------------------------------------------------------------
NEST Office SDK Reseller Agreement                       Statement of Work No. 8
                                     PAGE 1                  Agreement No. N-A-1

<PAGE>

Company Confidential                     Execution Original: NV 08/17/99 11:45AM
--------------------------------------------------------------------------------

         h.       "Net Revenue" shall mean gross sales less sales discounts,
                  reseller payments, returns, and allowances.

         i.       "PDQ" shall mean Novell's then current "Product Distribution
                  Questionnaire" form.

         j.       "PSN Licensee" shall mean an entity that enters an PSN NEST
                  Agreement with PSN.

         k.       "PSN NEST Agreement" shall mean an NEST Program Agreement
                  entered by PSN with another entity.

         l.       "PSN Supplement" shall mean an amendment or addendum to an PSN
                  NEST Agreement that is:

                  i.   In the form of a document separate from the NEST Program
                       Agreement;

                  ii.  Contains terms and conditions that are in addition to
                       those of the NEST Program Agreement, but do not
                       conflict with the NEST Program Agreement, with the
                       exception of any terms and conditions allowed by the
                       Permitted Changes to NEST Program Agreement set forth in
                       Exhibit D hereto;

                  iii. States that in the event the corresponding NEST Program
                       Agreement entered by the PSN Licensee is assigned to
                       Novell, those provisions of any supplement to the
                       agreement that modify the NEST Program Agreement shall
                       remain in effect.

                  iv.  States that in the event the corresponding NEST Program
                       Agreement entered by the PSN Licensee is assigned to
                       Novell, those provisions of any supplement to the
                       agreement that are in addition to the NEST Program
                       Agreement shall terminate.

                  Any PSN Supplement shall clearly identify and delineate those
                  provisions subject to subsection 2.1.iii and those provision
                  subject to subsection 2.1.iv.

                  Novell and PSN may modify Exhibit D only by means of a written
                  amendment to SOW 8.

         m.       "PSN Works" shall mean Code and Documentation that are
                  Derivative Works of and Error Corrections to the Licensed
                  Works developed by o r for PSN under SOW 8 or related support
                  agreements.

3.       PROJECT MANAGERS. The Novell and PSN Project Managers, or other
         personnel designated in writing by a Project Manager, shall confer on
         an as-needed basis to review the parties' performance under this SOW 8.
         All communications between Novell and PSN under this SOW 8 shall be
         through these individuals. Designation as a Project Manager hereunder
         does not constitute due authorization to amend this SOW 8 or otherwise
         modify the obligations of the parties hereunder.

         PSN recognizes that individuals other than the Project Managers are not
         authorized to interact with PSN on issues relating to SOW 8, and that
         only the Novell Project Manager is authorized to

--------------------------------------------------------------------------------
NEST Office SDK Reseller Agreement                       Statement of Work No. 8
                                     PAGE 2                  Agreement No. N-A-1

<PAGE>

Company Confidential                     Execution Original: NV 08/17/99 11:45AM
--------------------------------------------------------------------------------

         provided Novell Materials corresponding to the Licensed Works to PSN.
         Further, PSN acknowledges that the rights extended to PSN under this
         SOW 8 do not extend to Novell Materials other than those rightfully
         provided through the Project Managers in compliance with the terms and
         conditions of this SOW 8.

--------------------------------------------------------------------------------
                   PSN Project Manager                  Novell Project Manager
--------------------------------------------------------------------------------
Name               Adam Au                              Richard Jones
--------------------------------------------------------------------------------
Title              General Manager                      Engineering Director
--------------------------------------------------------------------------------
Address            386 Main Street                      122 East 1700 S.
                   Redwood City, CA 94063               Provo, Utah 84606
--------------------------------------------------------------------------------
Phone              650.569.4403                         801.861.3832
--------------------------------------------------------------------------------
Fax                650.568.6101                         801.861.4025
--------------------------------------------------------------------------------
E-mail Address     aau@auco.com                         rjones@novell.com
--------------------------------------------------------------------------------

4.       LICENSE AND OWNERSHIP.

         a.   License Grant to PSN.

              i.   Confidential Full Source Code License. Novell grants PSN a
                   Confidential  Full Source Code  License in the Licensed Works
                   solely to the extent necessary to:

                   (1)  grant licenses to the NEST Office SDK as allowed by and
                        pursuant to PSN NEST Agreements;

                   (2)  correct Errors in the NEST Office SDK as required to
                        fulfill obligations under PSN NEST Agreements.

              Notwithstanding the foregoing, PSN's rights to Authentication
              Code Source Code shall be restricted to compiling the Source Code
              in the United States.

              Distribution of the NEST Office SDK shall only be pursuant to
              an PSN NEST Agreement.

              Notwithstanding anything to the contrary in the BDA Section
              4.b, this Confidential Full Source License shall not be
              perpetual or irrevocable.

              ii.  Internal Use License. Novell hereby grants Auco an Internal
                   Use License in the Licensed Works, during the term of this
                   SOW 8, for the sole purpose of performing Auco's obligations
                   under this SOW 8 and for use as part of a development
                   environment in support of Auco's effort to develop Add-On
                   Products.

              iii. PSN Consulting Services. PSN desires to assist PSN Licensees,
                   as their subcontractor, in creating NEST enabled devices
                   pursuant to PSN NEST Agreements, but such agreements require
                   Novell's prior written consent of

--------------------------------------------------------------------------------
NEST Office SDK Reseller Agreement                       Statement of Work No. 8
                                     PAGE 3                  Agreement No. N-A-1

<PAGE>

Company Confidential                     Execution Original: NV 08/17/99 11:45AM
--------------------------------------------------------------------------------

                           subcontractors. The PSN NEST Agreements shall contain
                           a provision requiring PSN Licensees to obtain
                           approval of subcontractors; during the term of this
                           Agreement PSN is an approved subcontractor, and PSN
                           may so inform PSN Licensees without going through the
                           procedures outlined in Section 6.a.iii. Although the
                           necessary rights to modify Code as a subcontractor
                           flow through the PSN Licensee that retains the
                           services of the subcontractor, Novell recognizes that
                           physical transfer of Code from such PSN Licensees to
                           PSN is inefficient, and therefore grants PSN the
                           right to during the term of this SOW 8 to work from
                           copies of the relevant versions of the NEST Office
                           SDK in PSN's possession. PSN acknowledges that the
                           actual license rights flow through each PSN Licensee
                           that retains PSN as a subcontractor.

                     iv.   Maintenance Source Code License. This Section 4.a.iv,
                           and all other provisions of the BDA and SOW 8 and
                           relevant to this Section 4.a.iv, shall survive any
                           termination of this SOW 8 other than for Auco's
                           material breach subject to Auco's continued
                           compliance with those SOW 8 provisions relating to
                           the Licensed Works. Effective upon termination of
                           this SOW 8 other than by Novell for cause, Novell
                           hereby grants Auco a Maintenance Source Code License
                           in the NEST Office SDKs for the sole purpose of
                           providing technical support and Error corrections in
                           fulfillment of Auco's obligations under Auco NEST
                           Agreements. All changes to Code created by Auco shall
                           be treated as if created during the term of SOW 8
                           pursuant to the Confidential Full Source Code License
                           granted Auco in Section 4.a.i. The Maintenance Source
                           Code License shall terminate on the earlier of: 1)
                           the expiration of Auco's obligations under the Auco
                           NEST Agreements; or, 2) Auco's uncured material
                           breach of the license terms.

            b.       Ownership.

                     i.    Licensed Works. As between Novell and PSN, Novell
                           owns all right, title, and interest to the Licensed
                           Works, including all intellectual property rights
                           thereto but excluding any materials included in the
                           Licensed Works under license from PSN. PSN Works
                           shall be works made for hire and therefore the
                           property of Novell. If for any reason an PSN Work is
                           not considered a work made for hire, PSN agrees to
                           assign and hereby assigns to Novell all right, title
                           and interest therein, including all rights of patent
                           and copyright and other intellectual property rights,
                           and agrees to execute at Novell's request a
                           subsequent document as further evidence of this
                           assignment. In addition, PSN agrees to assign to
                           Novell all right, title, and interest in any
                           invention, patentable or not, made or conceived
                           solely or jointly during the course of performing,
                           and within the scope, of PSN's obligations hereunder.
                           For all PSN Works, PSN shall complete an PDQ and
                           provide the same to Novell at the same time PSN
                           delivers PSN Works to Novell.

                     ii.   Developer Derivative Works. Under certain provisions
                           of the NEST Program Agreement, PSN Licensees agree
                           that Novell shall be the owner of certain Materials.
                           PSN will cooperate fully in taking any action
                           necessary to perfect

--------------------------------------------------------------------------------
NEST Office SDK Reseller Agreement                       Statement of Work No. 8
                                     PAGE 4                  Agreement No. N-A-1

<PAGE>

Company Confidential                     Execution Original: NV 08/17/99 11:45AM
--------------------------------------------------------------------------------

                           Novell's rights. For all such Materials, PSN shall
                           complete a PDQ and provide the same to Novell at the
                           same time PSN delivers such Materials to Novell.

5.       TRADEMARK LICENSE. During the term of this SOW 8, the following terms
         and conditions shall apply to Novell's license to PSN of the NEST
         Trademark.

         a.       License. Conditional upon PSN's compliance with this Section
                  5, Novell hereby grants to PSN, a non-exclusive (as described
                  below), world-wide, non-transferable license to use the NEST
                  Trademark in connection with PSN's marketing of the NEST
                  Office SDK.

         b.       Notice Requirements. The initial or most prominent use of the
                  NEST Trademark in any products, packaging, written
                  advertisements and other promotional materials shall include
                  the trademark symbol "(TM)" (i.e., "NEST(TM)"), and all such
                  materials shall also include the following attribution notice:
                  "NEST is a trademark of Novell, Inc. in the United States and
                  other countries." Upon receiving a trademark registration for
                  the NEST Trademark, Novell may modify this notice requirement
                  accordingly by providing PSN sixty (60) days' prior written
                  notice.

         c.       Reservation of Rights and Goodwill. Novell retains all rights
                  in and to the NEST Trademark not expressly conveyed to PSN by
                  this Section 5. PSN acknowledges that all goodwill which
                  accrues in use of the NEST Trademark by PSN shall exclusively
                  inure to the benefit of, and belong to, Novell. PSN has no
                  rights of any kind whatsoever with respect to the NEST
                  Trademark licensed under this Agreement except to the extent
                  of the license granted in Section 5.

         d.       No Registration by PSN.

                  i.       Representation. PSN represents that there is no
                           registration or application for any trademark and/or
                           service mark which is the same as, or confusingly
                           similar to, the NEST Trademark in any class and in
                           any and all countries of the world, which is made by,
                           on behalf and/or in the name of PSN.

                  ii.      Prospective Prohibition. PSN further agrees to
                           refrain from filing any new trademark and/or service
                           mark application(s) in any class and in any country,
                           for any trademark and/or service mark which is
                           confusingly similar to the NEST Trademark, without
                           the prior written consent of the Novell Legal
                           Department.

                  iii.     Use of NEST Trademark in Foreign Jurisdictions. PSN
                           shall give Novell at least ninety (90) days prior
                           written notice of PSN's intent to use the NEST
                           Trademark in any country other than the U.S., Japan,
                           and Taiwan. If after receiving such notice Novell
                           determines that registration of the NEST Trademark or
                           filing or recording of a license or a registered user
                           agreement is required or advisable in connection with
                           such proposed use, the parties shall cooperate in
                           preparing and executing all documents necessary with
                           respect thereto. Registration of the NEST Trademark
                           shall be in Novell's name; PSN and Novell shall share
                           in the expense of any such registration, filing or
                           recording, paying respectively eighty percent (80%)
                           and twenty (20%) of such expenses.

--------------------------------------------------------------------------------
NEST Office SDK Reseller Agreement                       Statement of Work No. 8
                                     PAGE 5                  Agreement No. N-A-1

<PAGE>

Company Confidential                     Execution Original: NV 08/17/99 11:45AM
--------------------------------------------------------------------------------

         iv.      Subsidiaries & Affiliates. In the event Novell discovers that
                  any person, employee, officer, director, agent, servant or
                  juristic entity, which is controlled by, or under common
                  control of, PSN, has filed for, or obtained a registration of,
                  or is otherwise using any trademark which is confusingly
                  similar to the NEST Trademark, Novell shall provide written
                  notice of such to PSN. Commencing upon receipt of such notice,
                  PSN agrees to exercise best efforts to cause such person or
                  entity to assign to, or otherwise provide Novell with, an
                  exclusive license for the NEST Trademark.

         v.       Confusing Similarity. For purposes of this Section 5.d,
                  whether a mark is "confusingly similar" shall be determined in
                  accordance with the laws of the jurisdiction in which the
                  question arises.

         vi.      Survivability. The provisions of this Section 5.d, as they
                  apply to PSN, shall survive any termination or expiration of
                  this Agreement for a period of one (1) year after all of PSN's
                  obligations under this Agreement are fulfilled.

e.       Protection of Rights. PSN shall assist Novell, at Novell's expense and
         to the extent reasonably necessary, to protect or to obtain protection
         for any of Novell's rights to the NEST Trademark. Novell, if it so
         desires, may commence or prosecute any applications to register the
         NEST Trademark, in the name of Novell, for the NEST Trademark
         throughout the world. PSN shall promptly notify Novell in writing of
         any known or suspected abuses of the NEST Trademark. Novell shall have
         the sole right to determine whether or not any action shall be taken on
         account of such uses by others. PSN shall not institute any suit or
         take any action on account of such use by others except with Novell's
         prior written consent, which shall not be unreasonably withheld.

f.       Indemnification by PSN. PSN hereby agrees to indemnify and hold Novell
         harmless against any loss, liability, damage, cost or expense
         (including reasonable legal fees) arising out of any claims or suits,
         whatever their nature and however arising, which may be brought or made
         against Novell (i) by reason of PSN's material breach of this Section 5
         and/or (ii) arising out of the use by PSN of the NEST Trademark in any
         manner whatsoever except in the form expressly licensed hereunder;
         (iii) "PSN Works Claims" as defined in Section 5.h. In the event Novell
         seeks indemnification under this Section 5.f, it shall immediately
         notify PSN, in writing, of any claim or proceeding brought against it
         for which it seeks indemnification hereunder. PSN shall have the sole
         control of the defense of the claim or proceeding and all negotiations
         for its settlement or compromise. In no event may PSN enter into any
         third party agreements which would in any manner whatsoever affect the
         rights of, or bind, Novell in any manner to the third party, without
         the prior written consent of Novell.

g.       Indemnification by Novell. Novell hereby agrees to indemnify and hold
         PSN harmless against any loss, liability, damage, cost or expense
         (including reasonable legal fees) arising out of any third party claims
         or suits which may be brought or made against PSN arising out of the
         use by PSN of the NEST Trademark in the form expressly licensed
         hereunder, which assert that PSN's use of the NEST Trademark violates
         such party's

--------------------------------------------------------------------------------
NEST Office SDK Reseller Agreement                       Statement of Work No. 8
                                     PAGE 6                  Agreement No. N-A-1

<PAGE>

Company Confidential                     Execution Original: NV 08/17/99 11:45AM
--------------------------------------------------------------------------------

                  trademark rights in the U.S., Japan, or Taiwan. In the event
                  PSN seeks indemnification under this Section 5.g, it shall
                  immediately notify Novell, in writing, of any claim or
                  proceeding brought against it for which it seeks
                  indemnification hereunder. In no event may Novell enter into
                  any third party agreements which would in any manner
                  whatsoever affect the rights of, or bind, PSN in any manner to
                  the third party, without the prior written consent of PSN.
                  Novell shall have the sole control of the defense of the claim
                  or proceeding and all negotiations for its settlement or
                  compromise. Novell reserves the right to replace or modify the
                  NEST Trademark in a particular country at any time should use
                  of the NEST Trademark become, or in Novell's opinion be likely
                  to become, the subject of an allegation of infringement after
                  Novell has demonstrated that it has made commercially
                  reasonable efforts to resolve the dispute. Novell will assist
                  PSN in an orderly transition of the NEST Trademark to a new
                  mark in the case of such infringement problems.

          h.      Indemnification and Licensed Works. The indemnification
                  provisions of BDA No. N-A-1 shall apply to the Licensed Works
                  except that Novell shall have no responsibility or liability
                  for, and no obligation of indemnification with respect to,
                  "PSN Works Claims." An PSN Works Claim is a claim arising out
                  of or relating to those aspects of the PSN Works that are not
                  dictated by technical requirements provided to PSN by Novell.

6.        NEST OFFICE SDK DISTRIBUTORSHIP. During the term of this SOW 8 PSN may
          license the NEST Office SDK to third parties pursuant to PSN NEST
          Agreements as set forth in this Section.

          a.   NEST Program Agreement. PSN's distribution of the NEST Office
               SDKs shall be in the form of a NEST Program Agreement in
               accordance with this Section.

               i.    Implementation of Novell Revisions to NEST Program
                     Agreement. Novell may modify the NEST Program Agreement
                     from time to time. Nevertheless, to the extent commercially
                     reasonable, Novell agrees not to modify NEST Program
                     Agreement in a manner that materially reduces the net
                     benefit of the NEST Program Agreement to PSN. PSN must use
                     the most current version of the NEST Program Agreement, but
                     for a period of thirty (30) days after receipt of a revised
                     NEST Program Agreement PSN may use the immediate earlier
                     version with potential licensees that had received the
                     earlier version and commenced negotiation with PSN prior to
                     PSN's receipt of notice from Novell.

               ii.   Modification of NEST Program Agreement. PSN may modify the
                     NEST Program Agreement only by means of a separate written
                     PSN Supplement. PSN shall not alter the text of the NEST
                     Program Agreement documents, but shall effect such writings
                     in a separate document.

               iii.  Novell Approvals. The NEST Program Agreements contain
                     provisions where the other party requires approval prior to
                     undertaking some course of action ("Prior Approval"). For
                     example, the NEST Program Agreements may require Novell's
                     approval before the other party retains the services of a
                     consultant, before the contract can be assigned to another
                     company, and so forth. All

--------------------------------------------------------------------------------
NEST Office SDK Reseller Agreement                       Statement of Work No. 8
                                     PAGE 7                  Agreement No. N-A-1

<PAGE>

Company Confidential                     Execution Original: NV 08/17/99 11:45AM
--------------------------------------------------------------------------------

                    requests for Prior Approval shall be forwarded to Novell in
                    a writing identifying the licensee, explaining licensee's
                    request, a detailed recommendation as to whether such
                    request should be accepted or rejected, and signature block
                    for Novell's approval. PSN has no authority to accept or
                    reject such requests for Prior Approval, but shall respond
                    in each case in accordance with Novell written instructions
                    bearing the signature of the Novell Project Manager.

               iv.  Notification. Within ten (10) days of entering an PSN NEST
                    Agreement, PSN shall provide the Novell Project Manager with
                    a copy of the execution original of the PSN NEST Agreement.
                    PSN shall provide Novell with copies of all subsequent
                    addenda that modify the NEST Program Agreement, but shall
                    not be required to provide Novell with provisions of addenda
                    that are in addition to those of the NEST Program Agreement;
                    for example, PSN is required to provide Novell with an
                    addendum that effects the permitted modifications described
                    in Exhibit B to SOW 8, but as the PSN Agreement contains no
                    provisions relating to promotional activities, PSN is not
                    required to provide Novell with addendum provisions that set
                    forth promotional obligations. Novell shall be free to use
                    the information contained in the PSN NEST Agreements and
                    addenda for any purpose whatsoever, including customers
                    calls, market research, and so forth.

               v.   Operating System Companies. PSN shall not enter an PSN NEST
                    Agreement with a company that has an operating system
                    product competitive with a Novell operating system product
                    ("Operating System Company") without obtaining Novell's
                    prior written consent. As of the Effective Date, Novell
                    consents to PSN entering PSN NEST Agreements with the
                    following Operating System Company: *

          b.   Rights and Obligations Upon Termination of SOW 8.

               i.   In the event this SOW 8 expires under its own terms, PSN
                    shall have the right to service PSN NEST Agreements entered
                    prior to the date of termination of this SOW 8, and may not
                    modify the terms and conditions of such agreements
                    subsequent to the date of expiration. PSN may renew the PSN
                    NEST Agreements as provided therein.

               ii.  In the event Novell terminates this SOW 8 for cause, all PSN
                    NEST Agreements entered by PSN shall automatically be
                    assigned to Novell and PSN shall automatically be deemed to
                    have granted Novell all rights necessary to fulfill those
                    agreements. The foregoing shall not be interpreted to limit
                    rights Novell has under law.

7.        SUPPORT. PSN shall make technical support programs available to all
          signatories to the PSN NEST Agreements during the term of such
          agreements. Novell shall have no support obligations to PSN or PSN's
          licensees under this SOW 8.

8.        MARKETING. PSN and Novell shall assist in the marketing of the NEST
          Office SDK as mutually agreed upon in writing.

* 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.

--------------------------------------------------------------------------------
NEST Office SDK Reseller Agreement                       Statement of Work No. 8
                                     PAGE 8                  Agreement No. N-A-1

<PAGE>

Company Confidential                     Execution Original: NV 08/17/99 11:45AM
--------------------------------------------------------------------------------

9.       CONSIDERATION. Unless otherwise stated in this SOW, each party shall
         bear its respective costs and expenses in performing its obligations
         hereunder. The parties are entering this SOW 8 for good and valuable
         consideration, including without limitation the granting of licenses
         and ownership rights hereunder, the adequacy of which is acknowledged
         by the parties.

         a.       PSN Payments. In consideration of the licenses to the Licensed
                  Works granted to PSN hereunder, PSN shall pay Novell, with
                  respect to royalty payments due under PSN NEST Agreements
                  (other than Access Fees), a per copy royalty as specified in
                  the Royalty Table below. In the table, "Units" refers to the
                  number of products incorporating NEST Office SDK code
                  transfers, sublicenses or authorizes for use during the
                  relevant quarter. "Units Distributed" refers to the total
                  number of Units distributed and shall be reset to zero (0)
                  every three (3) years.

                          --------------------------------------------------
                          Units Distributed                 Per Unit Price
                          --------------------------------------------------
                          *                                 $*
                          --------------------------------------------------
                          *                                 $*
                          --------------------------------------------------
                          *                                 $*
                          --------------------------------------------------
                          *                                 $*
                          --------------------------------------------------
                          *                                 $*
                          --------------------------------------------------
                          *                                 $*
                          --------------------------------------------------

                  For purposes of this SOW 8, amounts paid to PSN by third
                  parties for separate goods or services delivered by PSN
                  pursuant to an PSN Supplement shall not be subject to this
                  Section.

                  The parties believe that the royalty obligations of PSN
                  hereunder may not be conducive to certain licensing
                  opportunities that PSN may experience during the term of this
                  SOW 8. Novell agrees that it will consider in good faith PSN
                  requests for written modification to this Section with respect
                  to specific licensee opportunities. In the event the approved
                  modification contemplate up-front, fixed license fees to be
                  paid by the licensee, the valuation of such transactions shall
                  be based on projected rather than actual number of units
                  distributed.

         b.       PSN Waiver of Novell Payment Obligations. Under other
                  agreements with PSN, Novell may have payment obligations
                  relating to PSN licensed materials included in the Licensed
                  Works. PSN hereby waives any and all such payment obligations
                  with respect to Licensed Works distributed pursuant to PSN
                  NEST Agreements under SOW 8.

         c.       Payments. All payments by one party to the other party shall
                  be made in accordance with the terms and conditions of
                  Agreement No. N-A-1. However, the cash payments required under
                  Section 9.a shall be made within forty-five (45) days from the
                  first day of February, May, August and November of each year.

* 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.

--------------------------------------------------------------------------------
NEST Office SDK Reseller Agreement                       Statement of Work No. 8
                                     PAGE 9                  Agreement No. N-A-1

<PAGE>

Company Confidential                     Execution Original: NV 08/17/99 11:45AM
--------------------------------------------------------------------------------

10.      REPORTS AND INFORMATION. On or prior to the thirty (30) days from the
         first day of February, May, August and November of each year, PSN will
         furnish to Novell a written report setting forth (i) the dates
         respecting the preceding calendar year or any part thereof in respect
         of which a royalty is payable, (ii) the amount of royalty payable by
         PSN for such period as calculated pursuant to this Statement of Work,
         and (iii) any other information Qualified OEMs are required to report
         to PSN pursuant to the NEST Program Agreement. Each such report will be
         accompanied by payment of the royalty due for the period covered
         thereby. Royalty reports shall be submitted to Novell at:

                           Royalty Accounting
                           MS: Q-232
                           1555 North Technology Way
                           Orem, Utah 84097

11.      CONFIDENTIALITY.  The standard confidentiality provisions of the BDA
         shall apply to this SOW.

12.      TERM AND TERMINATION. This SOW 8 shall commence on the Effective Date
         and shall remain in effect of a period of three (3) years from the
         Effective Date. Thereafter this SOW 8 shall automatically renew for
         additional periods of two (2) years each unless a party gives ninety
         (90) days' prior written notice. In addition to the Standard Survival
         provisions of Agreement N-A-1, those provisions of this SOW 8 which
         explicitly extent beyond termination of this SOW 8 shall survive
         termination.

13.      SIGNATURES. This Statement of Work may be executed in counterparts and
         shall become effective as of the Effective Date.

Novell, Inc.                                 PSN

Signature:     /s/  Christopher Stone        Signature:    /s/  Adam Au
          --------------------------------             -------------------------

Name:    Christopher Stone                   Name:   Adam Au

Title:   Senior Vice President               Title:  Vice President and General
                                                     Manager

Date:    August 17, 1999                     Date:   August 17, 1999

--------------------------------------------------------------------------------
NEST Office SDK Reseller Agreement                       Statement of Work No. 8
                                    PAGE 10                  Agreement No. N-A-1

<PAGE>

Company Confidential                     Execution Original: NV 08/17/99 11:45AM
--------------------------------------------------------------------------------

                                   Peerless Systems Corporation Hereby
                                   Guarantees The Performance Of All Obligations
                                   Of PSN Under This Agreement.

                                   Peerless Systems Corporation

                                   Name:  Thomas Ruffolo

                                   Title: Vice President Corporate Development

                                   Date:  August 17, 1999

                                   Signature:   /s/  Tom Ruffolo
                                             ----------------------------------

--------------------------------------------------------------------------------
NEST Office SDK Reseller Agreement                       Statement of Work No. 8
                                    PAGE 11                  Agreement No. N-A-1

<PAGE>

Company Confidential                     Execution Original: NV 08/17/99 11:45AM
--------------------------------------------------------------------------------

                      EXHIBIT A TO SOW 8 TO AGREEMENT N-A-1
                             NEST PROGRAM AGREEMENT

--------------------------------------------------------------------------------
NEST Office SDK Reseller Agreement                       Statement of Work No. 8
                                    PAGE 1                   Agreement No. N-A-1

<PAGE>

                            PSN/Company Confidential
--------------------------------------------------------------------------------

                           PEERLESS SYSTEMS NETWORKING
                        NEST Office SDK License Agreement

                                    Developer

Corporate Name:

Jurisdiction of Incorporation:

Address:

This NEST Office SDK License Agreement ("Agreement") is entered into by Peerless
Systems Networking, Inc., a wholly-owned subsidiary of Peerless Computer Systems
incorporated under the laws of California with corporate offices at 386 Main
Street, Redwood City, California 94063 ("PSN"), and Developer, as more
specifically described above.

1.      Purpose. Novell has appointed PSN as Novell's distributor of the NEST
        Office SDK. Novell, Inc., 122 East 1700 South, Provo, Utah ("Novell")
        has developed or otherwise has authority to license the NEST Office SDK.
        Under this Agreement, PSN is making certain Novell documentation and
        tools ("Tools) available to Developer to develop certain network
        products. This Agreement contains the terms and conditions applicable to
        the NEST Office SDK Program and Tools.

2.      Definitions.

        a.        Authentication Code means the following modules of the Tools
                  which Novell licenses from third parties subject to certain
                  terms and conditions: * and any other modules from the
                  Tools so identified by PSN.

        b.        Derivative Work means a work which is based upon one or more
                  preexisting works, such as a revision, modification,
                  translation, abridgement, condensation, expansion, collection,
                  compilation or any other form in which such preexisting works
                  may be recast, transformed or adapted, and which, if prepared
                  without the authorization by the owner of the preexisting
                  works, would constitute copyright infringement under U.S.
                  copyright laws.

        c.        Developer Derivative Works means Derivative Works of the Tools
                  prepared by or for Developer.

        d.        Developer Products means the products that Developer is
                  authorized to develop using the Tools. Each product shall be
                  identified in Exhibit A to this Agreement by product name
                  (which may be in the form of a code name if Developer provides
                  PSN notice of the actual release name prior to release), and
                  description. The Developer Product may include Tools and/or
                  Derivative Works thereof in binary form only.

* 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.

--------------------------------------------------------------------------------
NEST Office SDK 1.0
                                     PAGE 2                      August 17, 1999

<PAGE>

                            PSN/Company Confidential
--------------------------------------------------------------------------------

         e.       Enhancements means changes, additions or new releases, other
                  than Maintenance Modifications, to the Tools that improve
                  functions, add new functions, or improve performance by
                  changes to system design.

         f.       Maintenance Modifications means any modification or revision
                  to the Tools (other than an Enhancement) that corrects an
                  error or provides other incidental corrections.

         g.       Qualifying Developer Products means a Developer Product that
                  has been provided to, and accepted by, PSN prior to
                  distribution or Sublicense thereof and which complies with
                  certification criteria designated by Novell. Acceptance means
                  that PSN and Developer have added the Developer Product to
                  Exhibit A to this Agreement by means of a mutually agreed upon
                  writing. Developer acknowledges that achieving certification
                  criteria may require additional consideration for
                  participation in a certification program designated by Novell;
                  the current designated certification program is Novell's
                  DeveloperNet Labs.

         h.       Sublicense means an executed agreement or shrink wrap
                  agreement or electronic license that a user consents to by
                  performing a physical act (e.g., pushing a button on a
                  keyboard) before utilizing the Qualifying Developer Product
                  that at minimum provides the following or equivalent
                  protection to PSN and its licensors: (1) restricts the number
                  of copies of the Tools and any Derivative Works thereof
                  provided as part of the Qualifying Developer Product
                  ("Software") to one operating copy per Qualifying Developer
                  Product; (2) permits only those number of copies of the
                  Software as are essential to back up or archival use of the
                  Software; (3) states that no title to the intellectual
                  property contained in the Software is transferred to the
                  sublicensee and it is retained by Novell; (4) represents that
                  the human readable portion (source code) of the Software is
                  not sublicensed to the sublicensee; (5) restricts sublicensees
                  (to the extent not restricted explicitly by law) from
                  de-compiling and reverse assembling the Software to discover
                  the source code; and (6) prohibits time-sharing, lease,
                  rental, distribution, transfer, sublicense, and unauthorized
                  use of the Software.

         i.       Supplement means a writing duly signed by authorized
                  representatives of both parties that modifies this Agreement.

         j.       Tools means the Novell documentation and/or programs provided
                  hereunder by PSN under the NEST Office SDK Program. Tools in
                  documentation form are referred to as "Documentation Tools."
                  "Program Tools" may include source code or binary code.

3.       Deliverables. Provided Developer has paid the access fee specified in
         Section 11.a, PSN agrees to ship an initial release of the Tools to
         Developer F.O.B., PSN's point of shipment in the continental United
         States. PSN agrees to make Enhancements and Maintenance Modifications,
         if any, to the Tools available to Developer either electronically or
         through additional physical deliveries.

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                                     PAGE 3                      August 17, 1999

<PAGE>

                            PSN/Company Confidential
--------------------------------------------------------------------------------

4.      Product Licenses.

        a.        Development License. Subject to the terms and conditions of
                  this Agreement, PSN hereby grants, and Developer hereby
                  accepts, the following world-wide, non-exclusive,
                  non-transferable license to use, modify, merge, and to create
                  Derivative Works of the Tools solely to create Developer.
                  Products. With respect to Authentication Code source code,
                  Developers license is limited to reproducing and distributing
                  for internal use such Authentication Code binary code solely
                  for the purpose of creating Developer Products.

        b.        Distribution License. Subject to the terms and conditions of
                  this Agreement, PSN grants to Developer, and Developer
                  accepts, a non-exclusive, non-transferable, world-wide license
                  to reproduce and distribute (directly or indirectly) binary
                  code copies of the Tools and/or Derivative Works thereof as
                  part of a Qualifying Developer Product(s), but only under a
                  Sublicense, or, in the case of distribution, subject to
                  binding contractual assurances that the members of the channel
                  of distribution will make end user access and use subject to a
                  Sublicense.

        c.        Copies. Developer may make up to ten (10) copies of the Tools
                  for its own internal development and testing of Developer
                  Products and, subject to Section 4.e, for its authorized
                  contractors. The copies may be used solely in support of the
                  development being performed with the original copy of Tools
                  provided hereunder.

        d.        Testing and Evaluation Copies. Provided Developer does not
                  charge therefor, Developer may make and distribute on a
                  royalty-free basis up to twenty-five (25) copies of each
                  version or release of its Developer Products for customer
                  evaluation or testing purposes.

        e.        Contractors. In the event Developer employs a contractor
                  ("Contractor") to develop Developer Products, Developer agrees
                  to provide PSN with the identity of any proposed Contractor at
                  least 15 business days prior to Developer's providing any PSN
                  Confidential Information to Contractor for PSN's written
                  approval of the Contractor. After approval has been granted by
                  PSN for a Contractor, which approval shall not be unreasonably
                  withheld, Developer must provide PSN with written confirmation
                  that Contractor has executed an agreement with Developer
                  containing the terms and conditions set forth below:

                  i.     Subject to the terms and conditions of this Agreement
                         set forth below and PSN's prior approval, Developer may
                         grant to Contractor a sublicense to the Tools solely
                         for the purposes specified in Section 4.a. Tools shall
                         continue to be subject to the terms and conditions of
                         this Agreement. Contractor is not authorized by PSN to
                         make any additional copies of Tools over and above the
                         number that Developer is permitted to make pursuant to
                         Section 4.c. Contractor's license to the Tools may only
                         be granted as part of an agreement wherein the
                         intellectual property rights resulting from
                         Contractor's services ("IPR") shall be subject to the
                         following terms: 1) Developer and Contractor covenant
                         not to bring a claim against PSN, its licensors,
                         successors, assigns, or direct or indirect licensees,
                         that technologies or products of PSN or its licensor

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                                     PAGE 4                      August 17, 1999

<PAGE>

                            PSN/Company Confidential
--------------------------------------------------------------------------------

                           infringe any patents relating to the IPR; 2)
                           Developer covenants not to bring a claim against
                           Contractor, PSN, PSN's licensors, or successors,
                           assigns, or direct or indirect licensees of the
                           foregoing, that Contractor's services to third party
                           licensees of the Tools violate the IPR.

                     ii.   Developer shall provide PSN with the name of its
                           Contractor, address, contact person and the physical
                           location of each copy of the Tools and any Derivative
                           Works thereof.

                     iii.  Contractor shall be subject to confidentiality
                           provisions at least as stringent as those specified
                           in the Agreement with respect to the Tools.

                     iv.   PSN shall not be liable to Contractor in any manner
                           whatsoever and Developer agrees to indemnify PSN and
                           its licensors from and against any claim by
                           Contractor arising out of any agreement between
                           Developer and Contractor.

5.       Ownership. Developer agrees that the Developer Derivative Works shall
         be the property of Novell. Developer agrees to assign and hereby
         assigns to Novell all right, title and interest therein, including all
         rights of patent and copyright and other intellectual property rights,
         and agrees to execute at Novell's request a subsequent document as
         further evidence of this assignment. Developer agrees, at the request
         of PSN or Novell, to execute any other documents reasonably necessary
         to facilitate assignment of the foregoing rights to Novell, and to
         reasonably assist in the preparation of such documents. Except as
         expressly provided, this Agreement does not grant and will not be
         interpreted as granting any right, license, title, ownership or
         interest in or under any patent, copyright, trademark or trade secret
         of PSN or its licensors, whether by implication, estoppel or otherwise.

6.       Inventions & Patents. In the event that any Tools incorporate
         technology in which PSN or its licensors seek or hold patent or
         invention protection or any other similar form of legal protection, PSN
         grants to Developer a nonexclusive, non-transferable license to
         practice the patent or invention solely for use with the Qualifying
         Developer Products and only to the extent necessary to exercise the
         license granted under copyright in the Tools.

7.       Labeling. Developer shall not remove any copyright notices, patent
         notices or proprietary legends contained within the Tools and shall
         include the copyright and proprietary notices identified by PSN on the
         label of each diskette, tape, or other distribution medium (except upon
         read only memory devices, in which case the manual accompanying a
         Qualifying Developer Product shall contain the notice) containing in
         whole or in part Tools. From time to time, PSN may require Developer to
         change or include additional notices, such as patent pending or
         registration notices, upon written notice to Developer.

8.       Confidentiality. It is the intention of Developer and PSN to transfer
         and/or exchange information, including confidential information, as may
         be necessary. Such information may be disclosed in oral, visual, or
         written form (including magnetic, optical, or other media). PSN and
         Developer agree that, notwithstanding Section 8, all Source Code
         received under the Agreement, (or developed from Source Code) shall be
         considered to be confidential information for the purposes of this
         Section 8.

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                                     PAGE 5                      August 17, 1999

<PAGE>

                            PSN/Company Confidential
--------------------------------------------------------------------------------

         a.       The party receiving confidential information under the
                  Agreement ("Recipient") shall make use of the confidential
                  information only for the purposes of the Agreement. Nothing in
                  this Agreement shall be construed to limit either party's
                  right to independently develop or acquire products without use
                  of the other party's confidential information. Further, either
                  party shall be free to use the residuals resulting from access
                  to or work with the other party's confidential information,
                  provided that such party otherwise complies with the
                  non-disclosure provisions hereof. The term "residuals" means
                  general information in non-tangible form which may be retained
                  by persons who have had access to the confidential
                  information. The foregoing residuals rights shall not be
                  deemed to grant either party a license, by implication,
                  estoppel or otherwise, under the other party's patents or
                  copyrights.

         b.       The Recipient shall protect the disclosed confidential
                  information by using the same degree of care, but no less than
                  a reasonable degree of care, to prevent the unauthorized use,
                  dissemination, or publication of the confidential information
                  as the Recipient uses to protect its own confidential
                  information of a like nature.

         c.       The Recipient's duty to hold confidential information in
                  confidence expires five (5) years, or in the case of Source
                  Code fifteen (15) years, after (i) its return or destruction
                  in the case of confidential information embodied in received
                  or developed (whichever is later) Source Code and related
                  descriptions, specifications and system documentation, or (ii)
                  its receipt or development (whichever is later) in the case of
                  any other confidential -information. The expiration of the
                  duty of confidentiality shall not modify other restrictions on
                  the Recipient including, for example, any restrictions on
                  distribution of Source Code arising out of a granted copyright
                  license.

         d.       The Recipient's obligations shall only extend to confidential
                  information that is marked as confidential at the time of
                  disclosure or that is unmarked (e.g., orally disclosed) but is
                  treated as confidential at the time of disclosure.

         e.       This Agreement imposes no obligation upon Recipient with
                  respect to information that: (a) was in Recipient's possession
                  before receipt from the disclosing party ("Discloser"); (b) is
                  or becomes a matter of public knowledge through no fault of
                  Recipient; (c) is rightfully received by the Recipient from a
                  third party without a duty of confidentiality; (d) is
                  disclosed by the Discloser to a third party without a duty of
                  confidentiality on the third party; (e) is independently
                  developed by the Recipient without thereby violating the
                  Discloser's patent or copyright; (f) is disclosed under
                  operation of law after all reasonable means have been afforded
                  to the Discloser to protect the information; or, (g) is
                  disclosed by the Recipient with Discloser's prior written
                  approval.

9.       PSN Technical Support and Training. During the initial term or any
         successive term of this Agreement, PSN may, in PSN's sole discretion,
         provide technical support and/or training to Developer. Such support
         would be in accordance with any published support and/or training
         program description for the Tools and subject to Developer's payment of
         any program fees.

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10.      Support & Compatibility. Developer agrees to comply with the following
         provisions governing compatibility and interoperability of Qualifying
         Developer Products with the corresponding versions of PSN products.

         a.       Developer Products Documentation. Developer agrees to include
                  a conspicuous statement in the end user documentation for
                  Qualifying Developer Products identifying Developer or those
                  who market products on Developer's behalf as the sole support
                  contact for Qualifying Developer Products. Developer agrees to
                  incorporate a description identifying the versions of the
                  Tools that are compatible with the Qualifying Developer
                  Products by product name, version number and release level in
                  Qualifying Developer Product information or documentation.
                  Upon request, Developer agrees to provide PSN with evidence of
                  compliance with this Section 10.a.

         b.       End User Support. Developer shall be solely responsible for
                  all end user support of the Qualifying Developer Products.

11.      Consideration.

         a.       Access Fee. Developer shall pay to PSN a non-refundable access
                  fee of * ($*) for the deliverables specified in Section 3 for
                  each term of this Agreement. Unless Developer has established
                  credit with PSN, such fee shall be paid to PSN prior to
                  Developer receiving access to the Tools. Thereafter, during
                  any successive term of this Agreement, Developer shall Pay PSN
                  a non-refundable, non-cancelable access fee of * (*) ("Annual
                  Access Fee"). PSN shall automatically invoice Developer for
                  the Annual Access Fee on the anniversary date of this
                  Agreement.

         b.       Royalties. In exchange for the duplication and distribution
                  rights granted by PSN to Developer under this Agreement,
                  Developer agrees to pay PSN a per copy royalty of the greater
                  of * (*) or * percent (*%) of the Developer's Net Revenues
                  received by Developer for each Qualifying Developer Product
                  for the number of copies of the Qualifying Developer Products
                  it transfers, sells, Sublicenses or authorizes for use. For
                  purposes of the foregoing, "Net Revenues" shall mean gross
                  sales less normal discounts and returns.

         c.       Minimum Annual Royalty. Developer shall pay PSN a minimum
                  royalty of * ($*) for each term of this Agreement. In the
                  event that Developer has not paid PSN such amount under
                  Section 9.a, 11.b at the end of any term, PSN shall promptly
                  invoice Developer for the difference between such minimum
                  amount and the amount of actual royalties paid under Section
                  11.b.

         d.       Reporting and Payment Terms. Within ten (days) from the end of
                  each calendar month, Developer agrees to provide PSN with a
                  written royalty report certified by an authorized
                  representative detailing distributions for the previous
                  calendar month. The royalty report shall specifically detail
                  by reporting period and by PSN product (i.e., Tools version)
                  name, the (a) units shipped, (b) Net Revenues, (c) royalty
                  percent or per copy fee, whichever is applicable, (e) royalty
                  amount due, and (f) name of Qualifying Developer

* 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.

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                            PSN/Company Confidential
--------------------------------------------------------------------------------

                  Product. If no distributions occur in any given month, a zero
                  or "no activity" report must be submitted. Reports shall be
                  submitted to:

                           PSN, Inc
                           Royalty Accounting Department
                           386 Main Street
                           Redwood City, California 94063

         or sent by e-mail to:

                           royalty@PSN.com

         Invoices generated for royalty and other licensing fees will be due and
         payable Net twenty (20) days from the date of the invoice. Any minimum
         annual royalty paid shall not be refundable nor constitute and advance
         or credit against future royalties or any minimum annual royalty.

         e.       Audit.  Developer shall maintain complete and accurate
                  accounting records, in accordance with generally accepted
                  accounting practices, to support and document royalty amounts
                  due under this Exhibit and shall retain such records for three
                  (3) years after payment is made. Developer shall, upon written
                  request of PSN, provide audit access to such records to PSN or
                  its representative. If auditors should find a variance of more
                  than 5% between reported shipments and actual shipments or
                  between Net Revenue reported and actual Net Revenue, Developer
                  shall be responsible to pay for the audit. Such access shall
                  be granted only during normal business hours and no more
                  frequently than once in each calendar year. All information
                  received during the audit shall be held in confidence by the
                  parties.

         f.       Form of Payments.  All payments required under the Agreement
                  shall be in U.S. dollars, and shall be exclusive of any
                  federal, state, municipal or other government taxes, duties,
                  excises or tariffs now or hereinafter imposed on the
                  production storage, sale, transportation, import or export, or
                  use of the Tools. Any taxes, duties, excises, tariffs, fees,
                  or levies imposed on the fees paid hereunder or against the
                  Agreement except for taxes or fees based on PSN's net income,
                  shall be the responsibility of Developer, and if paid or
                  incurred by PSN, may be offset, at PSN's option, against any
                  payments due to Developer, or shall otherwise be promptly
                  reimbursed to PSN by Developer upon receipt of an invoice from
                  PSN.

         g.       Tax.  Developer agrees to pay and bear the liability for any
                  taxes associated with the marketing, sublicensing, and
                  delivery of the Qualifying Developer Product, including but
                  not limited to sales, use, excise, and added value taxes but
                  excluding: i) taxes based upon PSN's net income, capital, or
                  gross receipts, or ii) any withholding taxes imposed if such
                  withholding tax is allowed as a credit against U.S. income
                  taxes of PSN such as a withholding tax on a royalty payment
                  made by Developer where such withholding is required by law.
                  In the event Developer is required to withhold taxes,
                  Developer agrees to furnish to PSN all required receipts and
                  documentation substantiating such payment. If PSN is required
                  by law to remit any tax or duty on behalf, or for the account,
                  of Developer upon the marketing or delivery of the Qualifying
                  Developer Product,

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

                  Developer agrees to reimburse PSN within thirty (30) days
                  after PSN notifies Developer in writing of such remittance.
                  Developer agrees to provide PSN with valid tax exemption
                  certificates in advance of any remittance otherwise required
                  to be made by PSN on behalf, or for the account, of Developer
                  where such certificates are applicable.

12.      Disclaimer of Warranty. PSN LICENSES THE TOOLS TO DEVELOPER ON AN "AS
         IS" BASIS. PSN MAKES NO WARRANTIES, EITHER EXPRESS OR IMPLIED,
         REGARDING THE TOOLS, THE MERCHANTABILITY OR FITNESS OF THE TOOLS FOR
         ANY PARTICULAR PURPOSE. WITHOUT LIMITING THE FOREGOING, IN NO EVENT
         SHALL PSN BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING
         FROM THE USE OF THE TOOLS, OR THE SALE OR DISTRIBUTION OF DEVELOPER
         PRODUCTS, WHETHER UNDER THEORY OF WARRANTY, TORT, OR PRODUCTS LIABILITY
         EXCEPT FOR INDEMNIFICATION FOR INFRINGEMENT AS AND TO THE EXTENT
         PROVIDED IN SECTION 14.

13.      Indemnification by Developer. Developer will indemnify, defend and hold
         PSN harmless from any and all damages, liabilities, costs and expenses
         incurred by PSN as a result of any claims, judgments or adjudications
         against PSN by any third party resulting from Developer's breach of
         this Agreement or from Developer's distribution of any part of the
         Tools in combination with programs not supplied by PSN if such claims,
         judgments, or adjudication would not have arisen but for Developer's
         combination. If PSN receives notice of a claim based upon Developer's
         breach or Developer's combination of the Tools with programs not
         supplied by PSN, PSN will promptly notify Developer in writing of the
         claim and will permit Developer to have the sole control of the defense
         of any claim or action and all negotiations for its settlement and
         compromise, provided Developer can provide adequate assurances to PSN
         that Developer will diligently pursue resolution of the claim.

14.      Indemnification by PSN. PSN shall defend any and all claims made
         against Developer based on a claim that the Tools infringe, allegedly
         or in fact, any U.S. copyright or U.S. patent of any third party, if
         PSN is notified promptly in writing and is given reasonable
         information, assistance and the sole authority to defend or settle such
         claims at PSN's expense. PSN agrees to pay all damages and costs
         finally awarded against Developer.

In the event that any of the Tools is held to infringe and use of such enjoined
or the case is settled, as referred to above, PSN shall have the option, at its
expense, to procure for Developer the right to continue using the Tools to
replace or modify such so that they become non-infringing materials which have
the same or additional functionality, or to pay or refund to Developer the
consideration paid for use of them upon return of the Tools. In no event shall
PSN's aggregate liability to Developer for any damages under this provision
exceed the greater of the aggregate amount that Licensee has paid to PSN under
this Agreement or One Hundred Thousand Dollars (U.S. $100,000).

PSN will have no liability under any provisions of this Section if any
infringement claim is based upon the use of the Tools in connection or in
combination with equipment, devices, or software not supplied by PSN or used in
a manner for which the Tools were not designed if such infringement would not
have arisen except for such connection or combination or based upon an earlier
version of the Tools, provided the later version avoids the claim of
infringement.

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                            PSN/Company Confidential
--------------------------------------------------------------------------------

THE ABOVE STATES THE PSN'S ENTIRE OBLIGATION AND LIABILITY WITH RESPECT TO
INFRINGEMENT OF PATENTS, COPYRIGHTS, TRADEMARKS, OR ANY OTHER FORM OF
INTELLECTUAL PROPERTY BY ANY PRODUCTS OR TECHNOLOGY SUPPLIED BY PSN.

15.      Term & Termination. The effective date of this Agreement shall be the
         date of PSN's execution hereof. Subject to PSN's right to terminate
         this Agreement earlier pursuant to Section 15.a or Section 15.b, the
         term of this Agreement shall be for a period of one (1) year but shall
         automatically renew for successive one (1) year terms provided
         Developer has not given thirty (30) days' prior written notice that the
         Agreement will not be renewed and PSN has not provided one hundred
         eighty (180) days' prior written notice that the Agreement will not be
         renewed.

         a.       PSN may terminate this Agreement upon Developer's material
                  breach of this Agreement. PSN may terminate this Agreement by
                  giving written notice to Developer for any breach of this
                  Agreement which by its nature is subject to cure and continues
                  after thirty (30) days written notice from PSN.

         b.       Developer shall automatically be in material breach of this
                  Agreement if Developer:

                  i.    is dissolved, is involved in a reorganization, or
                        attempts to assign this Agreement or any of its rights
                        under this Agreement except as expressly provided
                        hereunder; or,

                  ii.   is not paying its debts as the debts become due, becomes
                        insolvent, files or has filed against it a petition
                        under any Bankruptcy Law, proposes any dissolution,
                        liquidation, composition, financial reorganization or
                        recapitalization with creditors, makes an assignment or
                        trust mortgage for the benefit of creditors, or if a
                        receiver trustee, custodian or similar agent is
                        appointed or takes possession of any property or
                        business.

         c.       Upon written notice by PSN of any termination of this
                  Agreement, Developer shall cease use of the Tools and promptly
                  return to PSN all existing copies of the Tools and all
                  Confidential Information received by Developer from PSN under
                  this Agreement.

         d.       Upon termination of this Agreement, each end-user of
                  Qualifying Developer Products properly in possession of such
                  Qualifying Developer Products and not in violation of the
                  Sublicense under which such end-user obtained such Qualifying
                  Developer Products, may continue to use such Qualifying
                  Developer Products in accordance with such Sublicense.

         e.       The rights of PSN under this Section 15 are in addition to any
                  other rights and remedies provided by law.

16.      Reservation of Rights. Nothing in this Agreement, or the fact that
         either party has entered into this Agreement, shall be construed as
         being or having the effect of a waiver, relinquishment or election of
         rights or remedies by or on behalf of either party against the other
         party or any director, officer, or employee thereof. Each party
         expressly reserves all of its right and remedies under law.

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17.      Limitation of Liability. THE REMEDIES SET FORTH HEREIN ARE EXCLUSIVE OF
         ALL OTHER REMEDIES THAT MAY BE AVAILABLE AT LAW OR IN EQUITY.
         NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, NEITHER
         PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, INCIDENTAL,
         OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS) SUSTAINED OR INCURRED
         IN CONNECTION WITH THIS AGREEMENT AND THE PRODUCTS THAT ARE SUBJECT TO
         THIS AGREEMENT REGARDLESS OF THE FORM OF ACTION AND WHETHER OR NOT SUCH
         DAMAGES ARE FORESEEABLE. PSN'S LIABILITY FOR DIRECT DAMAGES TO
         DEVELOPER FOR ANY CAUSE WHATSOEVER, EXCEPT AS OTHERWISE STATED IN THIS
         SECTION, AND REGARDLESS OF THE FORM OF ACTION, SHALL NOT EXCEED THE SUM
         OF $100,000. THIS LIMITATION DOES NOT APPLY TO DIRECT DAMAGES OR TO
         CLAIMS BY EITHER PARTY FOR PERSONAL INJURY OR DAMAGE TO REAL PROPERTY
         OR TANGIBLE PERSONAL PROPERTY CAUSED BY NEGLIGENCE.

18.      Remedy for Breach. Developer acknowledges that monetary damages may not
         be a sufficient remedy for unauthorized partial or full disclosure of
         Confidential Information or other breaches under this Agreement and
         that PSN will be entitled, in addition to monetary damages and without
         waiving any other rights or remedies, to injunctive or equitable relief
         as may be determined proper by a court of competent jurisdiction.

19.      No Offer for Sale. Absent a signature of an authorized representative
         of PSN, this Agreement is not an offer to license any materials to
         Developer either under the terms and conditions of this Agreement or
         under any terms and conditions.

20.      Role and Rights of Novell. Developer acknowledges that the licenses
         granted to Developer hereunder relate to Novell intellectual property
         licensed to PSN. PSN has certain obligations to Novell that are
         reflected in this Agreement. Developer and PSN agree to the following
         in this regard:

         a.      Supplement. This Agreement maybe modified only by a Supplement,
                 the documentation  for  which  must be separate from this
                 Agreement.

         b.      Approvals. There are several sections of this Agreement in
                 which Developer is required to receive prior approval of PSN
                 with respect to certain matters. Each of these matters relates
                 to Novell's intellectual property and business, and therefore
                 Novell has a direct interest in the resolution of such requests
                 for approval. Accordingly, Developer acknowledges that while
                 Developer's request for approval will be directed to PSN, and
                 that while PSN will exercise commercially reasonable efforts to
                 promptly respond to such requests, that approval can be granted
                 by PSN only after PSN has consulted with Novell; nevertheless,
                 to the extent this Agreement requires a response be given
                 within a certain amount of time, this Section 20.b does not
                 relieve PSN of that obligation.

         c.      Certification. Certification standards defined in this
                 Agreement are administered hereunder by PSN, but Novell has
                 ultimate control over such standards and determinations as to
                 whether compliance with such standards has been achieved.

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         d.      Ownership. There are sections of this Agreement in which
                 ownership in Code developed by for Developer hereunder, and
                 related intellectual property rights, is transferred to PSN,
                 and that PSN may have obligations to in turn transfer that
                 ownership to Novell. Developer agrees that to any extent
                 necessary, to cooperate in the execution of documents or any
                 other formalities necessary to effect such ownership transfers.
                 This obligation will survive termination of this Agreement.

         e.      Indemnification. In addition to Developer's obligations of
                 indemnification to PSN, Developer shall indemnify Novell for
                 any claims in accordance with the provisions of Section 13,
                 replacing "PSN" with "Novell" for purposes of this Section.
                 Novell has no obligations of indemnification under this
                 Agreement.

         f.      Enforcement of Rights. Developer and PSN acknowledge that
                 pursuant to PSN's commitments to Novell in obtaining authority
                 to grant the licenses afforded Developer hereunder, Novell has
                 full rights to act independently of the parties to enforce its
                 rights in this Agreement, including without limitation Novell's
                 rights in all intellectual property relating to this Agreement.
                 A party to any such action by Novell hereby consents to the
                 jurisdiction of courts of competent jurisdiction in Salt Lake
                 County, Utah, contingent on Novell having provided a reasonable
                 prior opportunity to resolve the matter through non-binding
                 arbitration held in Salt Lake City, Utah, or another place
                 mutually agreed upon by Novell and the party, in accordance
                 with the rules of the American Arbitration Association with a
                 panel specializing in computer and intellectual property law,
                 unless the matter in controversy either: a) was of such a
                 nature that a preliminary injunction was reasonably necessary
                 for Novell to have protected its interests; or, b) arises out
                 of or relates to the intellectual property provisions of this
                 Agreement.

         g.      Disclosure to Novell. Developer hereby authorizes PSN to
                 disclose this Agreement to Novell.

         h.      Assignment to Novell. Upon receipt of notice from Novell that
                 PSN is no longer Novell's distributor of the NEST Office SDK
                 and that Novell is exercising its right to assume this
                 Agreement, this Agreement shall be automatically assigned to
                 Novell and: a) those provisions of any Supplement that modify
                 this NEST Program Agreement shall remain in effect
                 ("Modifications"); and, b) those provisions of any Supplement
                 that are in addition to those of this NEST Program Agreement
                 shall terminate ("Additions"). Any provision of a Supplement
                 that is not identified as a Modification shall be deemed to be
                 an Addition for purposes of this subsection 20.h.

21.      General Provisions.

         a.      Force Majeure. If either party shall be prevented from
                 performing any portion of this Agreement by causes beyond its
                 control, including labor disputes, civil commotion, war,
                 governmental regulations or controls, casualty, inability to
                 obtain materials or services, or acts of God, such defaulting
                 party shall be excused from performance for the period of the
                 delay and for a reasonable time thereafter.

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

         b.      Jurisdiction & Venue. This Agreement shall in all respects be
                 governed by and construed in accordance with the laws of the
                 State of Utah, excluding those laws governing conflicts of law.
                 In addition, the parties agree that any action relating to, or
                 arising under this Agreement shall be instituted and prosecuted
                 exclusively in the courts of competent jurisdiction of the
                 State of Utah.

         c.      Survival of Terms. The provisions of this Agreement which by
                 their nature extend beyond termination of this Agreement will
                 survive and remain in effect until all obligations are
                 satisfied, including without limitation Section 11.b of this
                 Agreement.

         d.      Waiver. No waiver of any right or remedy on one occasion by
                 either party shall be deemed a waiver of such right or remedy
                 on any other occasion.

         e.      Entire Agreement. This Agreement and Exhibits referenced
                 herein, sets forth the entire agreement and understanding
                 between the parties as to the subject matter and merges all
                 prior discussions. Neither of the parties shall be bound by any
                 conditions, definitions, warranties, understandings or
                 representations with respect to the subject matter other than
                 as expressly provided under this Agreement. This Agreement may
                 not be modified by usage of trade, course of dealing or other
                 similar principles. This Agreement is subject to amendment or
                 modification only by a means of a Supplement.

         f.      Assignment. This Agreement is not assignable by Developer, in
                 whole or in part, without PSN's prior written consent.
                 Notwithstanding, PSN shall not unreasonably withhold consent to
                 an assignment to a parent, subsidiary or affiliate. Any
                 attempted assignment without PSN's written consent shall be
                 null and void. Without notice or consent, PSN may assign this
                 Agreement at any time to any PSN affiliate or subsidiary.

         g.      Notices. Unless otherwise agreed to by the parties, all notices
                 required under this Agreement shall be deemed effective when
                 received and made in writing by either (i) registered mail,
                 (ii) certified mail, return receipt requested, or (iii)
                 overnight mail, or (iv) by telephone facsimile transfer with
                 confirmation, addressed and sent to the address above-indicated
                 and to the attention of the following individuals:

                           PSN:           President

                           Developer:     (Name)

                                          (Title

         h.      Singular, Plural and Gender. When used in this Agreement the
                 singular includes the plural, the plural includes the singular
                 and gender related pronouns include the feminine, masculine and
                 neuter.

         i.      Severability. If any provision of this Agreement is held
                 invalid, illegal, or unenforceable, the validity, legality and
                 enforceability of the remaining provisions shall not in any way
                 be affected or impaired thereby, and shall be interpreted, to
                 the extent possible, to achieve the purposes as originally
                 expressed with the invalid, illegal or unenforceable provision.

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         j.      Independent Contractors. Each party acknowledges that both
                 parties to this Agreement are independent contractors and that
                 neither will represent itself as an agent or legal
                 representative of the other.

         k.      Compliance with Laws. Each party agrees to comply, at the
                 party's own expense, with all statutes, regulations, rules,
                 ordinances, and orders of any governmental body, department or
                 agency which apply to or result from the party's obligations
                 under this Agreement.

         l.      Headings. The headings provided in this Agreement are for
                 convenience only and shall not be used in interpretation or
                 construction.

         m.      Export Control Laws. Developer agrees to comply with U.S.
                 export laws and regulations when exporting a Qualifying
                 Developer Product, or any portion thereof, or any system
                 containing such Qualifying Developer Product or portion
                 thereof, or any technical data or other Confidential
                 Information, or any direct product of any of the foregoing
                 (collectively, "Program") from the U.S. or re-exporting (as
                 defined in Section 734.2(b) of the Export Administration
                 Regulations, as amended ("Regulations")) a Program from one
                 foreign country to another. It is Developer's responsibility to
                 comply with the U.S. Government requirements as they may be
                 amended from time to time. Without limiting the generality of
                 the foregoing: (i) regardless of any disclosure made by
                 Developer to PSN of an ultimate destination of a Program,
                 Developer shall not export or transfer, whether directly or
                 indirectly, a Program, to anyone outside the U.S. (including
                 further export if Developer took delivery of the Program
                 outside the U.S.) without first complying strictly and fully
                 with all export controls that may be imposed on the Program by
                 the U.S. Government or any country or organization of nations
                 within whose jurisdiction Developer operates or does business;
                 and (ii) absent any required prior authorization from the
                 Bureau of Export Administration, U.S. Department of Commerce,
                 14th and Constitution Avenue, Washington DC 20230, Developer
                 will not export or re-export the Program to any country in
                 Country Groups D:1 or E:2 as defined in the supplement No. 1 to
                 Section 740 of the Regulations, or such other countries as come
                 under restriction (including embargo) by action of the U.S.
                 Government, or to nationals from or residing in the foregoing
                 countries, without first obtaining permission from the
                 appropriate U.S. Government authorities.

         In the event that the shipping documents indicate that a Program has
         been exported to Developer under License Exception TMP (formerly called
         G-BETA), Developer certifies that such Program will only be used for
         beta testing purposes, and will not be rented, leased, sold,
         sublicensed, assigned, or otherwise transferred. Further, Developer
         certifies that it will not transfer or export any product, process or
         service that is the direct product of such Program.

         n.      Cumulative Remedies. The remedies under this Agreement will be
                 cumulative and not alternative and the election of one remedy
                 for breach will not preclude pursuit of other remedies.

         o.      Attorneys' Fees. If any dispute arises between the parties with
                 respect to the matters covered by this Agreement which leads to
                 a proceeding to resolve the dispute, the

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

                  prevailing party in the proceeding will be entitled to receive
                  its reasonable attorneys' fees, expert witness fees, and
                  out-of-pocket costs incurred in connection with the
                  proceeding, in addition to any other relief it may be awarded.

22.    Signatures.

PSN

Signature:

Name:

Title:

Date:

Developer:

Signature:

Name:

Title:

Date:

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

                        NEST OFFICE SDK LICENSE AGREEMENT
                                    EXHIBIT A
                          Qualifying Developer Products

--------------------------------------------------------------------------------
 Qualifying Developer    Description                            Date Accepted by
 Product                                                        PSN
--------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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SIGNATURES. PSN accepts the Qualifying Developer Products, and the parties have
agreed upon the royalty rates specified for each Qualifying Developer Product.
This Exhibit shall become effective on the latter of the dates on which it is
executed by an authorized representative of PSN or Developer.

PSN, Inc.                                                    Developer

Signature:                                                   Signature:

Name:                                                        Name:

Title:                                                       Title:

Date:                                                        Date:

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

                       EXHIBIT D TO SOW 8 AGREEMENT N-A-1
                                 NEST OFFICE SDK
                                Permitted Changes

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
Nest Program
Agreement
Section Number   Standard Language                                        Permitted Change
--------------------------------------------------------------------------------------------
<S>              <C>
4.c              Developer may make up to ten (10) copies of the                       *
                 Tools for its own internal development and
                 testing of Developer Products..."
--------------------------------------------------------------------------------------------
1.1              Dollar amounts for access fee.                                        *
--------------------------------------------------------------------------------------------
11.d             Reporting and Payment Terms.  Within ten (days) from                  *
                 the end of each calendar month, Developer agrees to
                 provide PSN with a written royalty report certified by
                 an authorized representative detailing distributions
                 for the previous calendar month.
--------------------------------------------------------------------------------------------
</TABLE>

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

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

NEST Office SDK 1.0
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