Document:

<PAGE>   1

                                                                    EXHIBIT 10.1

                         VALUEVISION INTERNATIONAL, INC.

                             2001 OMNIBUS STOCK PLAN

         1. PURPOSE. The purpose of the ValueVision International, Inc. 2001
Omnibus Stock Plan (the "Plan") is to motivate key personnel to produce a
superior return to the shareholders of the Company by offering such personnel an
opportunity to realize Stock appreciation, by facilitating Stock ownership and
by rewarding them for achieving a high level of corporate financial performance.
The Plan is also intended to facilitate recruiting and retaining key personnel
of outstanding ability by providing an attractive capital accumulation
opportunity. Additionally, the Plan is intended to provide Outside Directors
with an opportunity to acquire a proprietary interest in the Company, to
compensate Outside Directors for their contribution to the Company and to aid in
attracting and retaining Outside Directors.

         2. DEFINITIONS.

         2.1 The terms defined in this Section are used (and capitalized)
elsewhere in the Plan.

                  (a) "AFFILIATE" means any corporation that is a "PARENT
         CORPORATION" or "SUBSIDIARY CORPORATION" of the Company, as those terms
         are defined in Code Section 424(e) and (f), or any successor
         provisions.

                  (b) "AGREEMENT" means (i) a written contract consistent with
         the terms of the Plan entered into between the Company or an Affiliate
         and a Participant and (ii) containing the terms and conditions of an
         Award in such form and not inconsistent with this Plan as the Committee
         shall approve from time to time, together with all amendments thereto,
         which amendments may be unilaterally made by the Company where such
         amendment is required as a matter of law.

                  (c) "AWARD" or "AWARDS" means a grant made under this Plan in
         the form of Restricted Stock, Options, Stock Appreciation Rights,
         Performance Units, Stock or any other stock-based award.

                  (d) "BOARD" means the Board of Directors of the Company.

                  (e) "CODE" means the Internal Revenue Code of 1986, as amended
         and in effect from time to time or any successor statute.

                  (f) "COMMITTEE" means the two or more Non-Employee Directors
         designated by the Board to administer the Plan under Plan Section 3.1
         and constituted so as to permit grants thereby to comply with Exchange
         Act Rule 16b-3 and Code Section 162(m).

                  (g) "COMPANY" means ValueVision International Inc., a
         Minnesota corporation, or the successor to all or substantially all of
         its businesses by merger, consolidation, purchase of assets or
         otherwise.

                  (h) "EFFECTIVE DATE" means the date specified in Plan Section
         12.1.

                  (i) "EMPLOYEE" means an employee (including a officer or
         director who is also an employee) of the Company or an Affiliate.

                  (j) "EVENT" means any of the following:

<PAGE>   2

                           (1) The acquisition by any individual, entity or
                  group (within the meaning of Exchange Act Sections 13(d)(3) or
                  14(d)(2)) of beneficial ownership (within the meaning of
                  Exchange Act Rule 13d-3) of 30% or more of either (i) the
                  then-outstanding shares of common stock of the Company (the
                  "OUTSTANDING COMPANY COMMON STOCK") or (ii) the combined
                  voting power of the then-outstanding voting securities of the
                  Company entitled to vote generally in the election of the
                  Board (the "OUTSTANDING COMPANY VOTING SECURITIES"); provided,
                  however, that the following acquisitions shall not constitute
                  an Event:

                                    (A) any acquisition of common stock or
                           voting securities of the Company directly from the
                           Company,

                                    (B) any acquisition of common stock or
                           voting securities of the Company by the Company or
                           any of its wholly owned Subsidiaries,

                                    (C) any acquisition of common stock or
                           voting securities of the Company by any employee
                           benefit plan (or related trust) sponsored or
                           maintained by the Company or any of its Subsidiaries,
                           or

                                    (D) any acquisition by any corporation with
                           respect to which, immediately following such
                           acquisition, more than 70% of, respectively, the
                           then-outstanding shares of common stock of such
                           corporation and the combined voting power of the
                           then-outstanding voting securities of such
                           corporation entitled to vote generally in the
                           election of directors is then beneficially owned,
                           directly or indirectly, by all or substantially all
                           of the individuals and entities who were the
                           beneficial owners, respectively, of the Outstanding
                           Company Common Stock and Outstanding Company Voting
                           Securities immediately before such acquisition in
                           substantially the same proportions as was their
                           ownership, immediately before such acquisition, of
                           the Outstanding Company Common Stock and Outstanding
                           Company Voting Securities, as the case may be;

                           (2) Individuals who, as of the Effective Date,
                  constitute the Board (the "INCUMBENT Board") cease for any
                  reason to constitute at least a majority of the Board;
                  provided, however, that any individual becoming a director of
                  the Board after the Effective Date whose election, or
                  nomination for election by the Company's shareholders, was
                  approved by a vote of at least a majority of the directors
                  then comprising the Incumbent Board shall be considered a
                  member of the Incumbent Board, but excluding, for this
                  purpose, any such individual whose initial assumption of
                  office occurs as a result of an actual or threatened election
                  contest

                           (3) Approval by the shareholders of the Company of a
                  reorganization, merger, consolidation or statutory exchange of
                  Outstanding Company Voting Securities, unless immediately
                  following such reorganization, merger, consolidation or
                  exchange, all or substantially all of the individuals and
                  entities who were the beneficial owners, respectively, of the
                  Outstanding Company Common Stock and Outstanding Company
                  Voting Securities immediately before such reorganization,
                  merger, consolidation or exchange beneficially own, directly
                  or indirectly, more than 70% of, respectively, the
                  then-outstanding shares of common stock and the combined
                  voting power of the then-outstanding voting securities
                  entitled to vote generally in the election of directors, as
                  the case may be, of the corporation resulting from such
                  reorganization, merger, consolidation or exchange in
                  substantially the same proportions as was their ownership,

<PAGE>   3

                  immediately before such reorganization, merger, consolidation
                  or exchange, of the Outstanding Company Common Stock and
                  Outstanding Company Voting Securities, as the case may be; or

                           (4) Approval by the shareholders of the Company of
                  (i) a complete liquidation or dissolution of the Company or
                  (ii) the sale or other disposition of all or substantially all
                  of the assets of the Company, other than to a corporation with
                  respect to which, immediately following such sale or other
                  disposition, more than 70% of, respectively, the
                  then-outstanding shares of common stock of such corporation
                  and the combined voting power of the then-outstanding voting
                  securities of such corporation entitled to vote generally in
                  the election of directors is then beneficially owned, directly
                  or indirectly, by all or substantially all of the individuals
                  and entities who were the beneficial owners, respectively, of
                  the Outstanding Company Common Stock and Outstanding Company
                  Voting Securities immediately before such sale or other
                  disposition in substantially the same proportion as was their
                  ownership, immediately before such sale or other disposition,
                  of the Outstanding Company Common Stock and Outstanding
                  Company Voting Securities, as the case may be.

         Notwithstanding the above, an Event shall not be deemed to occur with
respect to a recipient of an Award if the acquisition of the 30% or greater
interest referred to in paragraph (1) is by a group, acting in concert, that
includes that recipient of an Award or if at least 30% of the then-outstanding
common stock or combined voting power of the then-outstanding voting securities
(or voting equity interests) of the surviving corporation or of any corporation
(or other entity) acquiring all or substantially all of the assets of the
Company shall be beneficially owned, directly or indirectly, immediately after a
reorganization, merger, consolidation, statutory share exchange or disposition
of assets referred to in paragraphs (3) or (4) by a group, acting in concert,
that includes that recipient of an Award.

                  (k) "EXCHANGE ACT" means the Securities Exchange Act of 1934,
         as amended and in effect from time to time, or any successor statute.

                  (l) "EXCHANGE ACT RULE 16b-3" means Rule 16b-3 promulgated by
         the Securities and Exchange Commission under the Exchange Act, as now
         in force and in effect from time to time or any successor regulation.

                  (m) "FAIR MARKET VALUE" as of any date means, unless otherwise
         expressly provided in the Plan:

                  (i)      the closing price of a Share on the date immediately
                           preceding that date or, if no sale of Shares shall
                           have occurred on that date, on the next preceding day
                           on which a sale of Shares occurred

                                    (A) on the composite tape for New York Stock
                           Exchange listed shares, or

                                    (B) if the Shares are not quoted on the
                           composite tape for New York Stock Exchange listed
                           shares, on the principal United States Securities
                           Exchange registered under the Exchange Act on which
                           the Shares are listed, or

<PAGE>   4

                                    (C) if the Shares are not listed on any such
                           exchange, on the National Association of Securities
                           Dealers, Inc. Automated Quotation National Market
                           System, or

                  (ii)     if clause (i) is inapplicable, the mean between the
                           closing "BID" and the closing "ASKED" quotation of a
                           Share on the date immediately preceding that date,
                           or, if no closing bid or asked quotation is made on
                           that date, on the next preceding day on which a
                           closing bid and asked quotation is made, on the
                           National Association of Securities Dealers, Inc.
                           Automated Quotations System or any system then in
                           use, or

                  (iii)    if clauses (i) and (ii) are inapplicable, what the
                           Committee determines in good faith to be 100% of the
                           fair market value of a Share on that date, using such
                           criteria as it shall determine, in its sole
                           discretion, to be appropriate for valuation.

                  However, if the applicable securities exchange or system has
         closed for the day at the time the event occurs that triggers a
         determination of Fair Market Value, whether the grant of an Award, the
         exercise of an Option or Stock Appreciation Right or otherwise, all
         references in this paragraph to the "date immediately preceding that
         date" shall be deemed to be references to "that date." In the case of
         an Incentive Stock Option, if this determination of Fair Market Value
         is not consistent with the then current regulations of the Secretary of
         the Treasury, Fair Market Value shall be determined in accordance with
         those regulations. The determination of Fair Market Value shall be
         subject to adjustment as provided in Plan Section 16.

                  (n) "FUNDAMENTAL CHANGE" shall mean a dissolution or
         liquidation of the Company, a sale of substantially all of the assets
         of the Company, a merger or consolidation of the Company with or into
         any other corporation, regardless of whether the Company is the
         surviving corporation, or a statutory share exchange involving capital
         stock of the Company.

                  (o) "INCENTIVE STOCK OPTION" means any Option designated as
         such and granted in accordance with the requirements of Code Section
         422 or any successor provision.

                  (p) "INSIDER" as of a particular date means any person who, as
         of that date is an officer of the Company as defined under Exchange Act
         Rule 16a-1(f) or its successor provision.

                  (q) "NON-EMPLOYEE DIRECTOR" means a member of the Board who is
         considered a non-employee director within the meaning of Exchange Act
         Rule 16b-3(b)(3) or its successor provision and an outside director for
         purposes of Code Section 162(m).

                  (r) "NON-STATUTORY STOCK OPTION" means an Option other than an
         Incentive Stock Option.

                  (s) "OPTION" means a right to purchase Stock, including both
         Non-Statutory Stock Options and Incentive Stock Options.

                  (t) "OUTSIDE DIRECTOR" means a director who is not an
         Employee.

                  (u) "PARTICIPANT" means a person or entity to whom an Award is
         or has been made in accordance with the Plan.

<PAGE>   5

                  (v) "PERFORMANCE CYCLE" means the period of time as specified
         in an Agreement over which Performance Units are to be earned.

                  (w) "PERFORMANCE UNITS" means an Award made pursuant to Plan
         Section 11.

                  (x) "PLAN" means this ValueVision International, Inc. 2001
         Omnibus Stock Plan, as may be amended and in effect from time to time.

                  (y) "RESTRICTED STOCK" means Stock granted under Plan Section
         7 so long as such Stock remains subject to one or more restrictions.

                  (z) "SECTION 16" or "SECTION 16(b)" means Section 16 or
         Section 16(b), respectively, of the Exchange Act or any successor
         statute and the rules and regulations promulgated thereunder as in
         effect and as amended from time to time.

                  (aa)     "SHARE" means a share of Stock.

                  (bb)     "STOCK" means the common stock, par value $.01 per
                           share, of the Company.

                  (cc)     "STOCK APPRECIATION RIGHT" means a right, the value
                           of which is determined in relation to the
                           appreciation in value of Shares pursuant to an Award
                           granted under Plan Section 10.

                  (dd)     "SUBSIDIARY" means a "subsidiary corporation," as
                           that, term is defined in Code Section 424(f), or any
                           successor provision.

                  (ee)     "SUCCESSOR" with respect to a Participant means the
                           legal representative of an incompetent Participant,
                           and if the Participant is deceased the estate of the
                           Participant or the person or persons who may, by
                           bequest or inheritance, or pursuant to the terms of
                           an Award, acquire the right to exercise an Option or
                           Stock Appreciation. Right or to receive cash and/or
                           Shares issuable in satisfaction of an Award in the
                           event of the Participant's death.

                  (ff)     "TERM" means the period during which an Option or
                           Stock Appreciation Right may be exercised or the
                           period during which the restrictions or terms and
                           conditions placed on Restricted Stock or any other
                           Award are in effect.

                  (gg)     "TRANSFEREE" means any member of the Participant's
                           immediate family (i.e., his or her children,
                           step-children, grandchildren and spouse) or one or
                           more trusts for the benefit of such family members or
                           partnerships in which such family members are the
                           only partners.

         2.2 GENDER AND NUMBER. Except when otherwise indicated by the context,
reference to the masculine gender shall include, when used, the feminine gender
and any term used in the singular shall also include the plural.
<PAGE>   6

         3. ADMINISTRATION AND INDEMNIFICATION.

         3.1 ADMINISTRATION.

         (a)      The Committee shall administer the Plan. The Committee shall
                  have exclusive power to (i) make Awards, (ii) determine when
                  and to whom Awards will be granted, the form of each Award,
                  the amount of each Award (except as to the amount of the
                  Annual Outside Director Option, as provided in Plan Section
                  9.3), and any other terms or conditions of each Award
                  consistent with the Plan, and (iii) determine whether, to what
                  extent and under what circumstances, Awards may be settled,
                  paid or exercised in cash, Shares or other Awards, or other
                  property or canceled, forfeited or suspended. Each Award shall
                  be subject to an Agreement authorized by the Committee.
                  Notwithstanding the foregoing, the Board shall have the sole
                  and exclusive power to administer the Plan with respect to
                  Awards granted to Outside Directors, including any grants made
                  under Plan Section 9.3(d).

         (b)      The Committee may delegate all or any portion of its authority
                  under the Plan to one or more persons who are not Non-Employee
                  Directors.

         (c)      To the extent within its discretion and subject to Plan
                  Sections 15 and 16, other than price, the Committee may amend
                  the terms and conditions of any outstanding Award.

         (d)      It is the intent that the Plan and all Awards granted pursuant
                  to it shall be administered by the Committee so as to permit
                  the Plan and Awards to comply with Exchange Act Rule 16b-3,
                  except in such instances as the Committee, in its discretion,
                  may so provide. If any provision of the Plan or of any Award
                  would otherwise frustrate or conflict with the intent
                  expressed in this Section 3.1(d), that provision to the extent
                  possible shall be interpreted and deemed amended in the manner
                  determined by the Committee so as to avoid the conflict. To
                  the extent of any remaining irreconcilable conflict with this
                  intent, the provision shall be deemed void as applicable to
                  Insiders to the extent permitted by law and in the manner
                  deemed advisable by the Committee.

         (e)      The Committee's interpretation of the Plan and of any Award or
                  Agreement made under the Plan and all related decisions or
                  resolutions of the Board or Committee shall be final and
                  binding on all parties with an interest therein. Consistent
                  with its terms, the Committee shall have the power to
                  establish, amend or waive regulations to administer the Plan.
                  In carrying out any of its responsibilities, the Committee
                  shall have discretionary authority to construe the terms of
                  the Plan and any Award or Agreement made under the Plan.

         3.2 INDEMNIFICATION. Each person who is or shall have been a member of
the Committee, or of the Board, and any other person to whom the Committee
delegates authority under the Plan, shall be indemnified and held harmless by
the Company, to the extent permitted by law, against and from any loss, cost,
liability or expense that may be imposed upon or reasonably incurred by such
person in connection with or resulting from any claim, action, suit or
proceeding to which such person may be a party or in which such person may be
involved by reason of any action taken or failure to act, made in good faith,
under the Plan and against and from any and all amounts paid by such person in
settlement thereof, with the Company's approval, or paid by such person in
satisfaction of any judgment in any such

<PAGE>   7

action, suit or proceeding against such person, provided such person shall give
the Company an opportunity, at the Company's expense, to handle and defend the
same before such person undertakes to handle and defend it on such person's own
behalf. The foregoing right of indemnification shall not be exclusive of any
other rights of indemnification to which such person or persons may be entitled
under the Company's Articles of Incorporation or Bylaws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

         4. SHARES AVAILABLE UNDER THE PLAN.

         (a)      The number of Shares available for distribution under this
                  Plan shall not exceed 3,000,000 (subject to adjustment
                  pursuant to Plan Section 16).

         (b)      Any Shares subject to the terms and conditions of an Award
                  under this Plan that are not used because the terms and
                  conditions of the Award are not met may again be used for an
                  Award under the Plan. But Shares with respect to which a Stock
                  Appreciation Right has been exercised whether paid in cash
                  and/or in Shares may not again be awarded under this Plan.

         (c)      Any unexercised or undistributed portion of any terminated,
                  expired, exchanged, or forfeited Award, or any Award settled
                  in cash in lieu of Shares (except as provided in Plan Section
                  4(b)) shall be available for further Awards.

         (d)      For the purposes of computing the total number of Shares
                  granted under the Plan, the following rules shall apply to
                  Awards payable in Shares where appropriate:

                  (i)      each Option shall be deemed to be the equivalent of
                           the maximum number of Shares that may be issued upon
                           exercise of the particular Option;

                  (ii)     an Award (other than an Option) payable in some other
                           security shall be deemed to be equal to the number of
                           Shares to which it relates;

                  (iii)    where the number of Shares available under the Award
                           is variable on the date it is granted, the number of
                           Shares shall be deemed to be the maximum number of
                           Shares that could be received under that particular
                           Award; and

                  (iv)     where two or more types of Awards (all of which are
                           payable in Shares) are granted to a Participant in
                           tandem with each other, such that the exercise of one
                           type of Award with respect to a number of Shares
                           cancels at least an equal number of Shares of the
                           other, each such joint Award shall be deemed to be
                           the equivalent of the maximum number of Shares
                           available under the largest single Award.

         Additional rules for determining the number of Shares granted under the
Plan may be made by the Committee, as it deems necessary or desirable.

         (e)      No fractional Shares may be issued under the Plan; however,
                  cash shall be paid in lieu of any fractional Share in
                  settlement of an Award.
<PAGE>   8

         (f)      The maximum number of Shares that may be awarded to a
                  Participant in any calendar year in the form of Options is
                  250,000 and the maximum number of Shares that may be awarded
                  to a Participant in any calendar year in the form of Stock
                  Appreciation Rights is 250,000.

         5. ELIGIBILITY. Participation in the Plan shall be limited to Employees
and to individuals or entities who are not Employees but who provide services to
the Company or an Affiliate, including services provided in the capacity of a
consultant, adviser or director. The granting of Awards is solely at the
discretion of the Committee, except that Incentive Stock Options may only be
granted to Employees and Awards to Outside Directors are subject to the limits
of Section 9.3.

         6. GENERAL TERMS OF AWARDS.

         6.1 AMOUNT OF AWARD. Each Agreement shall set forth the number of
Shares of Restricted Stock, Stock or Performance Units subject to the Agreement,
or the number of Shares to which the Option subject to the Agreement applies or
with respect to which payment upon the exercise of the Stock Appreciation Right
subject to the Agreement is to be determined, as the case may be, together with
such other terms and conditions applicable to the Award as determined by the
Committee acting in its sole discretion.

         6.2 TERM. Each Agreement, other than those relating solely to Awards of
Shares without restrictions, shall set forth the Term of the Option, Stock
Appreciation Right, Restricted Stock or other Award or the Performance Cycle for
the Performance Units, as the case may be. Acceleration of the expiration of the
applicable Term is permitted, upon such terms and conditions as shall be set
forth in the Agreement, which may, but need not, include (without limitation)
acceleration resulting from the occurrence of an Event or in the event of the
Participant's death or retirement. Acceleration of the Performance Cycle of
Performance Units shall be subject to Plan Section 11.2.

         6.3 TRANSFERABILITY. Except as provided in this Section, during the
lifetime of a Participant to whom an Award is granted, only that Participant (or
that Participant's legal representative) may exercise an Option or Stock
Appreciation Right, or receive payment with respect to Performance Units or any
other Award. No Award of Restricted Stock (before the expiration of the
restrictions), Options, Stock Appreciation Rights or Performance Units or other
Award may be sold, assigned, transferred, exchanged or otherwise encumbered
other than pursuant to a qualified domestic relations order as defined in the
Code or Title 1 of the Employee Retirement Income Security Act of 1974, as
amended ("E.R.I.S.A."), or the rules thereunder; any attempted transfer in
violation of this Section 6.3 shall be of no effect. Notwithstanding the
immediately preceding sentence, the Committee, in an Agreement or otherwise at
its discretion, may provide (i) that the Award subject to the Agreement shall be
transferable to a Successor in the event of a Participant's death, or (ii) that
the Award (other than Incentive Stock Options) may be transferable to a
Transferee. Any Award held by a Transferee shall continue to be subject to the
same terms an conditions that were applicable to that Award immediately before
the transfer thereof to the Transferee.

         6.4 TERMINATION OF EMPLOYMENT. No Option or Stock Appreciation Right
may be exercised by a Participant, all Restricted Stock held by a Participant or
any other Award then subject to restrictions shall be forfeited, and no payment
with respect to Performance Units for which the applicable Performance Cycle has
not been completed shall be made, if the Participant's employment or other
relationship with the Company and its Affiliates shall be voluntarily terminated
or involuntarily terminated with or without cause before the expiration of the
Term of the Option, Stock Appreciation Right, Restricted Stock or other Award,
or the completion of the Performance Cycle, as the case may be, except as, and
to the extent, provided in the Agreement applicable to that Award. An Award
may be

<PAGE>   9

exercised by, or paid to, a Transferee or the Successor of a Participant
following the death of the Participant to the extent, and during the period of
time, if any, provided in the applicable Agreement.

         6.5 RIGHTS AS SHAREHOLDER. Each Agreement shall provide that a
Participant shall have no rights as a shareholder with respect to any securities
covered by an Award if and until the date the Participant becomes the holder of
record of the Stock, if any, to which the Award relates.

         7. RESTRICTED STOCK AWARDS.

                  (a) An Award of Restricted Stock under the Plan shall consist
         of Shares subject to restrictions on transfer and conditions of
         forfeiture, which restrictions and conditions shall be included in the
         applicable Agreement. The Committee may provide for the lapse or waiver
         of any such restriction or condition based on such factors or criteria
         as the Committee, in its sole discretion, may determine.

                  (b) Except as otherwise provided in the applicable Agreement,
         each Stock certificate issued with respect to an Award of Restricted
         Stock shall either be deposited with the Company or its designee,
         together with an assignment separate from the certificate, in blank,
         signed by the Participant, or bear such legends with respect to the
         restricted nature of the Restricted Stock evidenced thereby as shall be
         provided for in the applicable Agreement.

                  (c) The Agreement shall describe the terms and conditions by
         which the restrictions and conditions of forfeiture upon awarded
         Restricted Stock shall lapse. Upon the lapse of the restrictions and
         conditions, Shares free of restrictive legends, if any, relating to
         such restrictions shall be issued to the Participant or a Successor or
         Transferee.

                  (d) A Participant or a Transferee with a Restricted Stock
         Award shall have all the other rights of a shareholder including, but
         not limited to, the right to receive dividends and the right to vote
         the Shares of Restricted Stock.

         8. OTHER AWARDS. The Committee may from time to time grant Stock and
other Awards under the Plan including without limitations those Awards pursuant
to which Shares are or may in the future be acquired, Awards denominated in
Stock units, securities convertible into Stock and phantom securities. The
Committee, in its sole discretion, shall determine the terms and conditions of
such Awards provided that such Awards shall not be inconsistent with the terms
and purposes of this Plan. The Committee may, at its sole discretion, direct the
Company to issue Shares subject to restrictive legends and/or stop transfer
instructions that are consistent with the terms and conditions of the Award to
which the Shares relate.

         9. STOCK OPTIONS.

         9.1 TERMS OF ALL OPTIONS.

                  (a) An Option shall be granted pursuant to an Agreement as
         either an Incentive Stock Option or a Non-Statutory Stock Option. The
         purchase price of each Share subject to an Option shall be set forth in
         the Agreement, but shall not be less than 100% of the Fair Market Value
         of a Share as of the date the Option is granted (except as provided in
         Plan Section 19).

                  (b) The purchase price of the Shares with respect to which an
         Option is exercised shall be payable in full at the time of exercise,
         provided that to the extent permitted by law, the Agreement may permit
         some or all Participants to simultaneously exercise Options and sell
         the

<PAGE>   10

         Shares thereby acquired pursuant to a brokerage or similar relationship
         and use the proceeds from the sale as payment of the purchase price of
         the Shares. The purchase price may be payable in cash, by delivery or
         tender of Shares that have been owned by the Participant for at least
         the preceding 180 days and having a Fair Market Value as of the date
         the Option is exercised equal to the purchase price of the Shares being
         purchased pursuant to the Option, or a combination thereof, as
         determined by the Committee, but no fractional Shares will be issued or
         accepted.

                  (c) Each Option shall be exercisable in whole or in part on
         the terms provided in the Agreement. Notwithstanding anything to the
         contrary in this Plan and except as otherwise provided in an Agreement,
         all Options granted to Employees shall vest and become exercisable in
         full upon the occurrence of an Event or a proposed Fundamental Change.
         In no event shall any Option be exercisable at any time after the
         expiration of its Term. When an Option is no longer exercisable, it
         shall be deemed to have lapsed or terminated.

         9.2 INCENTIVE STOCK OPTIONS. In addition to the other terms and
conditions applicable to all Options:

                  (a) the aggregate Fair Market Value (determined as of the date
         the Option is granted) of the Shares with respect to which Incentive
         Stock Options held by an individual first become exercisable in any
         calendar year (under this Plan and all other incentive stock option
         plans of the Company and its Affiliates) shall not exceed $100,000 (or
         such other limit as may be required by the Code) if this limitation is
         necessary to qualify the Option as an Incentive Stock Option and to the
         extent an Option or Options granted to a Participant exceed this limit
         the Option or Options shall be treated as a Non-Statutory Stock Option;

                  (b) an Incentive Stock Option shall not be exercisable more
         than 10 years after the date of grant (or such other limit as may be
         required by the Code) if this limitation is necessary to qualify the
         Option as an Incentive Stock Option;

                  (c) the Agreement covering an Incentive Stock Option shall
         contain such other terms and provisions that the Committee determines
         necessary to qualify this Option as an Incentive Stock Option; and

                  (d) notwithstanding any other provision of this Plan to the
         contrary, no Participant may receive an Incentive Stock Option under
         the Plan if, at the time the Award is granted, the Participant owns
         (after application of the rules contained in Code Section 424(d), or
         its successor provision), Shares possessing more than 10% of the total
         combined voting power of all classes of stock of the Company or its
         Subsidiaries, unless (i) the option price for that Incentive Stock
         Option is at least 110% of the Fair Market Value of the Shares subject
         to that Incentive Stock Option on the date of grant and (ii) that
         Option is not exercisable after the date five years from the date that
         Incentive Stock Option is granted.

         9.3 TERMS AND CONDITIONS OF OUTSIDE DIRECTORS' OPTIONS

                  (a) Annual Outside Director Option Grants. For the Annual
         Meeting of Shareholders to be held on June 21, 2001 and for each Annual
         Meeting of Shareholders thereafter during the term of this Plan, each
         Outside Director serving as an Outside Director of the Company
         immediately following the Annual Meeting shall be granted, by virtue of
         serving as an Outside Director of the Company, a Non-Statutory Stock
         Option to purchase 10,000 Shares or such other amount as may be
         established from time to time by the Board, but in no event to exceed
         50,000 Shares (an "ANNUAL OUTSIDE DIRECTOR OPTION"). Each Annual
         Outside Director

<PAGE>   11

         Option shall be deemed to be granted to each Outside Director
         immediately after an Annual Meeting.

                  (b) Vesting of Annual Outside Director Options. Subject to the
         provisions of Plan Section 9.3(c), Annual Outside Director Options
         shall vest and become exercisable as provided in the Agreement. Each
         Option, to the extent exercisable, shall be exercisable in whole or in
         part. Notwithstanding anything to the contrary in this Plan, all Annual
         Outside Director Options shall vest and become exercisable in full upon
         the occurrence of an Event or a proposed Fundamental Change.

                  (c) Termination of Annual Outside Directors' Options. Each
         Outside Director Option granted pursuant to this Plan and all rights to
         purchase Shares thereunder shall terminate on the earliest of:

                  (i)      ten years after the date that the Outside Director
                           Option was granted or such other time period
                           specified in the Agreement;

                  (ii)     the expiration of the period specified in the
                           Agreement after the death or permanent disability of
                           an Outside Director; or

                  (iii)    ninety days after the date the Outside Director
                           ceases to be a director of the Company, provided,
                           however, that the option shall be exercisable during
                           this 90-day period only to the extent the option was
                           exercisable as of the date the person ceases to be an
                           Outside Director unless the cessation results from
                           the director's death or permanent disability.
                           Notwithstanding the preceding sentence, if an Outside
                           Director who resigns or whose term expires then
                           becomes a consultant or Employee of the Company
                           within ninety days of such resignation or term
                           expiration, the Outside Director Options of such
                           person shall continue in full force and effect.

                  (e) Non-exclusivity of Section 9.3. The provisions of this
         Section 9.3 are not intended to be exclusive; the Committee, in its
         discretion, may grant Options or other Awards to an Outside Director.

         10. STOCK APPRECIATION RIGHTS. An Award of a Stock Appreciation Right
shall entitle the Participant (or a Successor or Transferee), subject to terms
and conditions determined by the Committee, to receive upon exercise of the
Stock Appreciation Right all or a portion of the excess of (i) the Fair Market
Value of a specified number of Shares as of the date of exercise of the Stock
Appreciation Right over (ii) a specified price that shall not be less than 100%
of the Fair Market Value of such Shares as of the date of grant of the Stock
Appreciation Right. A Stock Appreciation Right may be granted in connection with
part or all of, in addition to, or completely independent of an Option or any
other Award under this Plan. If issued in connection with a previously or
contemporaneously granted Option, the Committee may impose a condition that
exercise of a Stock Appreciation Right cancels a pro rata portion of the Option
with which it is connected and vice versa. Each Stock Appreciation Right may be
exercisable in whole or in part on the terms provided in the Agreement. No Stock
Appreciation Right shall be exercisable at any time after the expiration of its
Term. When a Stock Appreciation Right is no longer exercisable, it shall be
deemed to have lapsed or terminated. Upon exercise of a Stock Appreciation
Right, payment to the Participant or a Successor or Transferee shall be made at
such time or times as shall be provided in the Agreement in the form of cash,
Shares or a combination of cash and Shares as determined by the Committee. The
Agreement may provide for a limitation upon the amount or

<PAGE>   12

percentage of the total appreciation on which payment (whether in cash and/or
Shares) may be made in the event of the exercise of a Stock Appreciation Right.

         11. PERFORMANCE UNITS.

         11.1 INITIAL AWARD.

                  (a) An Award of Performance Units under the Plan shall entitle
         the Participant or a Successor or Transferee to future payments of
         cash, Shares or a combination of cash and Shares, as determined by the
         Committee, based upon the achievement of pre-established performance
         targets. These performance targets may, but need not, include (without
         limitation) targets relating to one or more of the Company's or a
         group's, unit's, Affiliate's or an individual's performance. The
         Agreement may establish that a portion of a Participant's Award will be
         paid for performance that exceeds the minimum target but falls below
         the maximum target applicable to the Award. The Agreement shall also
         provide for the timing of the payment.

                  (b) Following the conclusion or acceleration of each
         Performance Cycle, the Committee shall determine the extent to which
         (i) performance targets have been attained, (ii) any other terms and
         conditions with respect to an Award relating to the Performance Cycle
         have been satisfied and (iii) payment is due with respect to an Award
         of Performance Units.

         11.2 ACCELERATION AND ADJUSTMENT. The Agreement may permit an
acceleration of the Performance Cycle and an adjustment of performance targets
and payments with respect to some or all of the Performance Units awarded to a
Participant, upon the occurrence of certain events, which may, but need not
include without limitation an Event, a Fundamental Change, a recapitalization, a
change in the accounting practices of the Company, a change in the Participant's
title or employment responsibilities, the Participant's death or retirement or,
with respect to payments in Shares with respect to Performance Units, a
reclassification, stock dividend, stock split or stock combination as provided
in Plan Section 16. The Agreement also may provide for a limitation on the value
of an Award of Performance Units that a Participant may receive.

         12. EFFECTIVE DATE AND DURATION OF THE PLAN.

         12.1 EFFECTIVE DATE. The Plan shall become effective as of June 22,
2001, provided that the Plan is approved by the requisite vote of shareholders
at the meeting of shareholders to be held June 21, 2001 or at any adjournment
thereof.

         12.2 DURATION OF THE PLAN. The Plan shall remain in effect until all
Stock subject to it shall be distributed, all Awards have expired or lapsed, the
Plan is terminated pursuant to Plan Section 15, or June 21, 2011 (the
"TERMINATION Date"); provided, however, Awards made before the Termination Date
may be exercised, vested or otherwise effectuated beyond the Termination Date
unless limited in the Agreement or otherwise. No Award of an Incentive Stock
Option shall be made more than 10 years after the Effective Date (or such other
limit as may be required by the Code) if this limitation is necessary to qualify
the Option as an Incentive Stock Option.

         13. PLAN DOES NOT AFFECT EMPLOYMENT STATUS.

                  (a) Status as an eligible Employee shall not be construed as a
         commitment that any Award will be made under the Plan to that eligible
         Employee or to eligible Employees generally.

<PAGE>   13

                  (b) Nothing in the Plan or in any Agreement or related
         documents shall confer upon any Employee or Participant any right to
         continue in the employment of the Company or any Affiliate or
         constitute, any contract of employment or affect any right that the
         Company or any Affiliate may have to change such person's compensation,
         other benefits, job responsibilities, or title, or to terminate the
         employment of such person with or without cause.

         14. TAX WITHHOLDING. The Company shall have the right to withhold from
any cash payment under the Plan to a Participant or other person (including a
Successor or Transferee) an amount sufficient to cover any required withholding
taxes. The Company shall have the right to require a Participant or other person
receiving Shares under the Plan to pay the Company a cash amount sufficient to
cover any required withholding taxes before actual receipt of those Shares. In
lieu of all or any part of a cash payment from a person receiving Shares under
the Plan, the Committee may permit the individual to cover all or any part of
the required withholdings, and to cover any additional withholdings up to the
amount needed to cover the individual's full FICA and federal, state and local
income taxes with respect to income arising from payment of the Award, through a
reduction of the number of Shares delivered or delivery or tender return to the
Company of Shares held by the Participant or other person, in each case valued
in the same manner as used in computing the withholding taxes under the
applicable laws.

         15. AMENDMENT, MODIFICATION AND TERMINATION OF THE PLAN.

                  (a) The Board may at any time and from time to time terminate,
         suspend or modify the Plan. Except as limited in (b) below, the
         Committee may at any time alter or amend any or all Agreements under
         the Plan to the extent permitted by law.

                  (b) No termination, suspension, or modification of the Plan
         will materially and adversely affect any right acquired by any
         Participant or Successor or Transferee under an Award granted before
         the date of termination, suspension, or modification, unless otherwise
         agreed to by the Participant in the Agreement or otherwise, or required
         as a matter of law; but it will be conclusively presumed that any
         adjustment for changes in capitalization provided for in Plan Sections
         11.2 or 16 does not adversely affect these rights.

         16. ADJUSTMENT FOR CHANGES IN CAPITALIZATION. Subject to any required
action by the Company's shareholders, appropriate adjustments, so as to prevent
enlargement of rights or inappropriate dilution -- (i) in the aggregate number
and type of Shares available for Awards under the Plan, (ii) in the limitations
on the number of Shares that may be issued to an individual Participant as an
Option or a Stock Appreciation Right in any calendar year or that may be issued
in the form of Restricted Stock or Shares without restrictions, (iii) in the
number and type of Shares and amount of cash subject to Awards then outstanding,
(iv) in the Option price as to any outstanding Options and, (v) subject to Plan
Section 11.2, in outstanding Performance Units and payments with respect to
outstanding Performance Units may be made by the Committee in its sole
discretion to give effect to adjustments made in the number or type of Shares
through a Fundamental Change (subject to Plan Section 17), recapitalization,
reclassification, stock dividend, stock split, stock combination or other
relevant change, provided that fractional Shares shall be rounded to the nearest
whole Share.

         17. FUNDAMENTAL CHANGE. In the event of a proposed Fundamental Change,
the Committee may, but shall not be obligated to:

                  (a) if the Fundamental Change is a merger or consolidation or
         statutory share exchange, make appropriate provision for the protection
         of the outstanding Options and Stock Appreciation Rights by the
         substitution of options, stock appreciation rights and appropriate

<PAGE>   14

         voting common stock of the corporation surviving any merger or
         consolidation or, if appropriate the parent corporation of the Company
         or such surviving corporation; or

                  (b) at least 30 days before the occurrence of the Fundamental
         Change, declare, and provide written notice to each holder of an Option
         or Stock Appreciation Right of the declaration, that each outstanding
         Option and Stock Appreciation Right, whether or not then exercisable,
         shall be canceled at the time of, or immediately before the occurrence
         of the Fundamental Change in exchange for payment to each holder of an
         Option or Stock Appreciation Right, within days after the Fundamental
         Change, of cash equal to (i) for each Share covered by the canceled
         Option, the amount, if any, by which the Fair Market Value (as defined
         in this Section) per Share exceeds the exercise price per Share covered
         by such Option or (ii) for each Stock Appreciation Right, the price
         determined pursuant to Section 10, except that Fair Market Value of the
         Shares as of the date of exercise of the Stock Appreciation Right, as
         used in clause (i) of Plan Section 10, shall be deemed to mean Fair
         Market Value for each Share with respect to which the Stock
         Appreciation Right is calculated determined in the manner hereinafter
         referred to in this Section. At the time of the declaration provided
         for in the immediately preceding sentence, each Stock Appreciation
         Right and each Option shall immediately become exercisable in full and
         each person holding an Option or a Stock Appreciation Right shall have
         the right, during the period preceding the time of cancellation of the
         Option or Stock Appreciation Right, to exercise the Option or the Stock
         Appreciation Right in whole or in part, as the case may be. In the
         event of a declaration pursuant to this Plan Section 17(b), each
         outstanding Option and Stock Appreciation Right granted pursuant to the
         Plan that shall not have been exercised before the Fundamental Change
         shall be canceled at the time of, or immediately before, the
         Fundamental Change, as provided in the declaration. Notwithstanding the
         foregoing, no person holding an Option or a Stock Appreciation Right
         shall be entitled to the payment provided for in this Section 17 (b) if
         such Option or Stock Appreciation Right shall have expired pursuant to
         the Agreement. For purposes of this Section only, "Fair Market Value"
         per Share shall mean the cash plus the fair market value, as determined
         in good faith by the Committee, of the non-cash consideration to be
         received per Share by the shareholders of the Company upon the
         occurrence of the Fundamental Change.

         18. FORFEITURES. An Agreement may provide that if a Participant has
received or been entitled to payment of cash, delivery of Shares, or a
combination thereof pursuant to an Award within six months before the
Participant's termination of employment with the Company and its Affiliates, the
Committee, in its sole discretion, may require the Participant to return or
forfeit the cash and/or Shares received with respect to the Award (or its
economic value as of (i) the date of the exercise of Options or Stock
Appreciation Rights, (ii) the date of, and immediately following, the lapse of
restrictions on Restricted Stock or the receipt of Shares without restrictions,
or (iii) the date on which the right of the Participant to payment with respect
to Performance Units vests, as the case may be) in the event of certain
occurrences specified in the Agreement. The Committee's right to require
forfeiture must be exercised within 90 days after discovery of such an
occurrence but in no event later than 15 months after the Participant's
termination of employment with the Company and its Affiliates. The occurrences
may, but need not include competition with the Company or any Affiliate,
unauthorized disclosure of material proprietary information of the Company or
any Affiliate, a violation of applicable business ethics policies of the Company
or Affiliate or any other occurrence specified in the Agreement within the
period or periods of time specified in the Agreement.

         19. CORPORATE MERGERS, ACQUISITIONS, ETC. The Committee may also grant
Options, Stock Appreciation Rights, Restricted Stock or other Awards under the
Plan having terms, conditions and provisions that vary from those specified in
this Plan provided that any such awards are granted in substitution for, or in
connection with the assumption of, existing options, stock appreciation rights,
restricted stock or other award granted, awarded or issued by another
corporation and assumed or

<PAGE>   15

otherwise agreed to be provided for by the Company pursuant to or by reason of a
transaction involving a corporate merger, consolidation, acquisition of property
or stock, separation, reorganization or liquidation to which the Company or a
subsidiary is a party.

         20. UNFUNDED PLAN. The Plan shall be unfunded and the Company shall not
be required to segregate any assets that may at any time be represented by
Awards under the Plan. Neither the Company, its Affiliates, the Committee, nor
the Board of Directors shall be deemed to be a trustee of any amounts to be paid
under the Plan nor shall anything contained in the Plan or any action taken
pursuant to its provisions create or be construed to create a fiduciary
relationship between the Company and/or its Affiliates, and a Participant or
Successor or Transferee. To the extent any person acquires a right to receive an
Award under the Plan, this right shall be no greater than the right of an
unsecured general creditor of the Company.

         21. LIMITS OF LIABILITY.

                  (a) Any liability of the Company to any Participant with
         respect to an Award shall be based solely upon contractual obligations
         created by the Plan and the Award Agreement.

                  (b) Except as may be required by law, neither the Company nor
         any member of the Board of Directors or of the Committee, nor any other
         person participating in any determination of any question under the
         Plan, or in the interpretation, administration or application of the
         Plan, shall have any liability to any party for any action taken, or
         not taken, in good faith under the Plan.

         22. COMPLIANCE WITH APPLICABLE LEGAL REQUIREMENTS. No certificate for
Shares distributable pursuant to this Plan shall be issued and delivered unless
the issuance of a certificate complies with all applicable legal requirements
including, without limitation, compliance with the provisions of applicable
state securities laws, the Securities Act of 1933, as amended and in effect from
time to time or any successor statute, the Exchange Act and the requirements of
the exchanges on which the Company's Shares may, at the time, be listed.

         23. DEFERRALS AND SETTLEMENTS. The Committee may require or permit
Participants to elect to defer the issuance of Shares or the settlement of
Awards in cash under such rules and procedures as it may establish under the
Plan. It may also provide that deferred settlements include the payment or
crediting of interest on the deferral amounts.

         24. OTHER BENEFIT AND COMPENSATION PROGRAMS. Payments and other
benefits received by a Participant under an Award made pursuant to the Plan
shall not be deemed a part of a Participant's regular, recurring compensation
for purposes of the termination, indemnity or severance pay laws of any country
and shall not be included in, nor have any effect on, the determination of
benefits under any other employee benefit plan, contract or similar arrangement
provided by the Company or an Affiliate unless expressly so provided by such
other plan, contract or arrangement, or unless the Committee expressly
determines that an Award or portion of an Award should be included to accurately
reflect competitive compensation practices or to recognize that an Award has
been made in lieu of a portion of competitive cash compensation.

         25. BENEFICIARY UPON PARTICIPANT'S DEATH. To the extent that the
transfer of a Participant's Award at his or her death is permitted under an
Agreement, a Participant's Award shall be transferable at death to the estate or
to the person who acquires the right to succeed to the Award by bequest or
inheritance.

<PAGE>   16

         26. CHANGE-IN-CONTROL PAYMENTS.

                  (a) Notwithstanding the provisions of Plan Section 17 above,
         if any Award, either alone or together with other payments in the
         nature of compensation to a Participant that are contingent on a change
         in the ownership or effective control of the Company or in the
         ownership of a substantial portion of the assets of the Company or
         otherwise, would result in any portion thereof being subject to an
         excise tax imposed under Code Section 4999, or any successor provision,
         or would not be deductible in whole or in part by the Company, an
         affiliate of the Company (as defined in Code Section 1504, or any
         successor provision), or other person making such payments as a result
         of Code Section 280G, or any successor provision, such Award and/or
         such other benefits and payments shall be reduced (but not below zero)
         to the largest aggregate amount as will result in no portion thereof
         being subject to such an excise tax or being not so deductible.

                  (b) For purposes of Plan Section 26(a), (i) no portion of
         payments the receipt or enjoyment of which a Participant shall have
         effectively waived in writing before the date of distribution of an
         Award shall be taken into account; (ii) no portion of such Award,
         benefits and other payments shall be taken into account that in the
         opinion of tax counsel selected by the Company's independent auditors
         and acceptable to the Participant does not constitute a "parachute
         payment" within the meaning of Code Section 280G(b)(2), or any
         successor provision; and (iii) the value of any non-cash benefit or any
         deferred payment or benefit included in such payment shall be
         determined by the Company's independent auditors in accordance with the
         principles of Code Sections 280G(d)(3) and (4) or any successor
         provisions;

                  (c) Any Award not paid as a result of this Plan Section 26 or
         reduced to zero as a result of the limitations imposed hereby, shall
         remain outstanding in full force and effect in accordance with the
         other terms and provisions of this Plan.

         27. REQUIREMENTS OF LAW.

                  (a) To the extent that federal laws do not otherwise control,
         the Plan and all determinations made and actions taken pursuant to the
         Plan shall be governed by the laws of the State of Minnesota without
         regard to its conflicts-of-law principles and shall be construed
         accordingly.

                  (b) If any provision of the Plan shall be held illegal or
         invalid for any reason, the illegality or invalidity shall not effect
         the remaining parts of the Plan, and the Plan shall be construed and
         enforced as if the illegal or invalid provision had not been included.<PAGE>   1
Inquiries to XEROX CORPORATION concerning this Agreement should be addressed to:

         XEROX CORPORATION
         555 SO. AVIATION BLVD.
         MS M1 025
         EL SEGUNDO, CA 90245
         ATTN: HARVEY L. HUDDLESTON

Inquiries to the DEVELOPER concerning this Agreement should be addressed to:

         T/R SYSTEMS, INC.
         1300 OAKBROOK DRIVE
         NORCROSS, GA 30093
         ATTN: EDWARD GAUGHAN

                                TABLE OF CONTENTS

I.       Definitions
II.      Title to Licensed Software and Marketing Exclusivity
III.     License Grant
IV.      License Fee
V.       Royalty
VI.      Marketing of Licensed Software
VII.     Enhancements to Licensed Software
VIII.    Specifications, Delivery and Acceptance
IX.      Warranty after Approval
X.       Technical Support
XI.      Termination
XII.     Indemnification
XIII.    Disclaimer
XIV.     Force Majeure
XV.      Ethical Standards
XVI.     Confidential Information
XVII.    Assignment
XVIII.   Modification
XIX.     Bankruptcy
XX.      Compliance with the Law
XXI.     Nonpublicity
XXII.    Controlling Law
XXIII.   General Provisions
XXIV.    Attachments

                               ATTACHMENT SCHEDULE

 I.      Specifications
 II.     Delivery and Fee
 III.    Royalty
 IV.     Technical Support
 V.      Distribution of Licensed Software
 VI.     Product Packaging
 VII.    End-User Agreement
 VIII.   Licensed Software Xerox Printers Configuration & Communication
         Functionality
 IX.     Licensed Software Acceptance Test

         This Agreement is made between T/R Systems ("DEVELOPER"), with offices
at 1300 Oakbrook Drive, Norcross, Georgia 30093 and XEROX CORPORATION, ("XEROX")
with offices at 555 South Aviation Blvd, El Segundo, CA. 90245, and shall be
effective as of July 31, 2001 or the date on which the signature of the last
party to sign is placed on the agreement.

RECITALS

         DEVELOPER has either created, or has the rights to certain computer
programs, DOCUMENTATION, and related written materials as defined in Attachment
I, ("Underlying Software") and XEROX desires to acquire a right and license to
market the Underlying Software as modified by DEVELOPER for XEROX, under the
terms and conditions set forth in this Agreement; and

         DEVELOPER is willing to grant such rights and licenses and is further
willing to prepare modifications and additions to the Underlying Software and
provide Technical Support as required herein; and:

         In consideration of the mutual Agreements contained in this Agreement,
DEVELOPER and XEROX hereby agree as follows:

I.       DEFINITIONS

1.01     "LICENSED SOFTWARE" means all software, IMPROVEMENTS and DOCUMENTATION
created or developed pursuant to this Agreement from the Underlying Software and
conforming to the Specifications set forth in Attachment I hereof, and shall
include all modifications, improvements, enhancements, additions, derivative
works, updates, releases and versions thereof; provided, however, that the term
"Licensed Software" as used throughout this Agreement shall be subject to XEROX'
rights as set forth in Section 2.01.

1.02     "DERIVATIVE WORKS" means any work based on, and derived from, the
IMPROVEMENTS, which

                                                                          PAGE 1

*        Confidential information has been omitted and filed separately with the
         Commission

<PAGE>   2
derivation was created or developed at the expense of, or on the initiative of,
Xerox as additionally detailed in 2.01.

1.03     "IMPROVEMENTS" means the software program portions of the LICENSED
SOFTWARE developed specifically for XEROX for interface with and connectivity to
the Underlying Software.

1.04     "DOCUMENTATION" means all written text including but not limited to
manuals, brochures, specifications and software descriptions, in electronic,
printed and/or camera ready form, and related materials customarily needed for
use with LICENSED SOFTWARE.

1.05     "XEROX COMPANIES" means Xerox Corporation, Fuji Xerox Co., Ltd., and
their respective subsidiaries and affiliates, and "XEROX COMPANY" shall mean any
one of the aforesaid companies.

1.06     "End-User" means a person or entity that acquires the LICENSED SOFTWARE
from XEROX for use other than resale or distribution.

1.07     "Specification" means the Licensed Software description in Attachment I
which may change from time to time and is expressly incorporated herein by this
reference.

II.   TITLE TO LICENSED SOFTWARE & MARKETING EXCLUSIVITY

2.01     Title to the UNDERLYING SOFTWARE resides in DEVELOPER. XEROX COMPANIES
have the exclusive right to distribute the LICENSED SOFTWARE themselves, or
through authorized dealers or distributors, under the terms and conditions set
forth in Attachment V of this Agreement. Title to the IMPROVEMENTS and the
DERIVATIVE WORKS shall reside in XEROX. If the DERIVATIVE WORKS are prepared by
DEVELOPER, they shall be deemed a work-for-hire, and if any such work does not
so qualify, DEVELOPER hereby assigns and transfers to XEROX the full copyright
therein. Nothing herein shall restrict DEVELOPER's rights to the Underlying
Software.

III.     LICENSE GRANT

3.01     DEVELOPER grants and conveys to XEROX COMPANIES a perpetual, exclusive,
world-wide right and license to market and distribute the LICENSED SOFTWARE
pursuant to the terms set forth in this Agreement. No rights are granted to
XEROX in the Underlying Software as a stand-alone product.

3.02     The license to market granted in this Agreement extends to and includes
Releases [x.x.(x)] of the LICENSED SOFTWARE. These releases will include all
error corrections. DEVELOPER will provide XEROX written notification of pending
new updates, releases and versions and availability thereof, sufficiently in
advance of publication in order for XEROX to react in a timely manner.

3.03     XEROX grants to DEVELOPER a perpetual, nonexclusive, royalty-free,
world-wide right and license (with a right to sublicense) to copy the
IMPROVEMENTS and DERIVATIVE WORKS for purposes of distributing the LICENSED
SOFTWARE to XEROX pursuant to this Agreement.

IV.      LICENSE FEE

4.01     If XEROX agrees to pay DEVELOPER a license fee for development of the
LICENSED SOFTWARE, the specific items, maximum dollar value, and payment
schedule of such fee will be defined in Attachment II, entitled "Delivery and
Fee."

4.02     In the event the parties have identified a development fee in
Attachment II, DEVELOPER shall provide to XEROX evidence that the applicable
Delivery Milestones described on Attachment II have been met, and XEROX's
obligation to pay DEVELOPER shall be contingent upon the receipt of such
evidence. All payments shall be made [ * ] days following XEROX' receipt of
DEVELOPER's invoice.

V.       ROYALTY

5.01     DEVELOPER will charge the prices for each unit of LICENSED SOFTWARE set
forth in Attachment III.

VI.      MARKETING OF LICENSED SOFTWARE

6.01     DEVELOPER will provide to XEROX full, complete and accurate marketing
information, technical specifications, and update descriptions related to the
LICENSED SOFTWARE for the primary purpose of promotion thereof, so that XEROX
COMPANIES can, on a periodic basis and as new changes or additions occur,
distribute the same to its sales force and End-Users. During the term of this
Agreement, XEROX COMPANIES may also include LICENSED SOFTWARE product
description and information in any XEROX literature. The distribution of such
literature by XEROX COMPANIES will be at the expense of XEROX COMPANIES. XEROX
COMPANIES may, at their option and expense, prepare its own promotional
literature relating to LICENSED SOFTWARE and distribute the same to its sales
force and End-Users.

                                                                          PAGE 2

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   3
VII.     ENHANCEMENTS TO LICENSED SOFTWARE

7.01     As DEVELOPER issues new releases of the Underlying Software, DEVELOPER
agrees to issue new releases of the LICENSED SOFTWARE containing the
enhancements to the Underlying Software contained in the new releases thereof,
at DEVELOPER's expense, for future distribution by XEROX; provided that if such
customizations of the LICENSED SOFTWARE are more than routine in nature or
expense, XEROX will pay DEVELOPER such amounts as are mutually agreed to by the
parties.

VIII.    SPECIFICATIONS, DELIVERY AND ACCEPTANCE

8.01     DEVELOPER will develop the LICENSED SOFTWARE in accordance with the
Specification defined in Attachment I and will deliver the LICENSED SOFTWARE to
XEROX in accordance with Schedule A, B, or C of Attachment II, as appropriate.

8.02     XEROX reserves the right to make changes to the Specifications at any
time prior to delivery of the LICENSED SOFTWARE in accordance with 8.01 and
DEVELOPER agrees to make such changes; provided that XEROX and DEVELOPER have
negotiated in good faith and agreed to an equitable adjustment in fees or time
schedule, as necessary, for substantial changes to the specification and/or
changes which affect the dates for scheduled delivery.

8.03     After delivery as stated in 8.01 of the LICENSED SOFTWARE, XEROX will
have [ * ] days to test the same and to notify DEVELOPER in writing of either
its Approval or reasons for non-conformance to the Specifications of Attachment
I. The Acceptance Criteria in Attachment I shall serve as the criteria which
Xerox will use in making its determination as to Approval.

8.04     Upon notification by XEROX in accordance with 8.03 that the LICENSED
SOFTWARE does not meet the Specifications of Attachment I, DEVELOPER will
correct the LICENSED SOFTWARE within a correction period of [ * ] days following
receipt of written notice from XEROX, and XEROX will be relieved of its [ * ]
day Approval obligation set forth in 8.03. If DEVELOPER subsequently delivers
corrected LICENSED SOFTWARE to XEROX within said [ * ] day correction period,
XEROX will have an additional [ * ] days from receipt to reevaluate the
corrected LICENSED SOFTWARE.

8.05     If DEVELOPER is unable to meet the Specifications of Attachment I in
the [ * ] day correction period of 8.04, or within [ * ] days of the delivery
milestone dates set forth in Attachment I or II then as XEROX' sole remedy and
at its option XEROX may:

         (a)      Extend the correction period by an amount of time as may be a
                  determined by XEROX; or

         (b)      Approve the LICENSED SOFTWARE with an equitable reduction in
                  the fee specified in Attachment II, Schedule B; or

         (c)      Reject the LICENSED SOFTWARE by notifying DEVELOPER of such in
                  writing and promptly returning all LICENSED SOFTWARE to
                  DEVELOPER with all copies made thereof upon DEVELOPER
                  refunding to XEROX any advances paid to DEVELOPER (if
                  applicable); or

         (d)      Elect to terminate the Agreement.

IX.      WARRANTY AFTER APPROVAL

9.01     DEVELOPER represents and warrants that the LICENSED SOFTWARE, after
Approval by Xerox as provided in Article VIII, will conform to the
Specifications set forth in Attachment I in all material respects, including
without limitation Year 2000 Performance Compliance and thus will be able to
accurately process data (including but not limited to calculating, comparing and
sequencing) from, into, and between the twentieth and twenty-first centuries,
including leap year calculations, and will remain so for [ * ] days.

9.02     If any program errors as described in Section 9.01 are discovered by
XEROX following Approval and during the [ * ] day period specified in Section
9.01, DEVELOPER shall correct such errors at no charge to XEROX within a
correction period in accordance with Attachment IV following receipt of written
notice from XEROX of such errors. DEVELOPER shall not be obligated to correct,
cure or otherwise remedy any error if the same is caused by any unauthorized
changes to the LICENSED SOFTWARE, use with hardware or in an operating
environment other than that specified in the Specifications, or misuse or damage
by an End User.

9.03     If the program errors of 9.02 cannot be eliminated by DEVELOPER in the
correction period referred to in Section 9.02, then as XEROX' remedy and at its
option XEROX may:

         (a)      Extend the correction period by an amount of time as may be
                  determined by XEROX; or

         (b)      Approve the LICENSED SOFTWARE with an equitable reduction in
                  the fee specified in Attachment II, Schedule B; or

                                                                          PAGE 3

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   4
         (c)      Reject the LICENSED SOFTWARE by notifying DEVELOPER of such in
                  writing and promptly returning all copies of LICENSED SOFTWARE
                  furnished by DEVELOPER to DEVELOPER upon DEVELOPER refunding
                  to XEROX any advances paid to DEVELOPER (if applicable).

9.04     EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH HEREIN, DEVELOPER HEREBY
DISCLAIMS AND XEROX HEREBY EXPRESSLY WAIVES ANY AND ALL OTHER EXPRESS WARRANTIES
OR REPRESENTATIONS OF ANY KIND OR NATURE, AND ANY AND ALL IMPLIED WARRANTIES,
INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE.

X.       TECHNICAL SUPPORT

10.01    DEVELOPER shall provide technical support and maintenance of the
LICENSED SOFTWARE to XEROX in conformity with the terms and conditions defined
in Attachment IV, entitled "Technical Support."

XI.      TERMINATION

11.01    The term of this Agreement shall be perpetual provided that neither
party terminates or has terminated this Agreement as expressly provided below.

11.02    Either DEVELOPER or XEROX may terminate this Agreement by written
notice of termination to the other party upon a material breach by DEVELOPER or
XEROX which has not been cured within thirty (30) days of written notice of such
breach. Termination of this Agreement shall also occur upon the rejection of the
LICENSED SOFTWARE in accordance with 8.05(c) except that the obligations as to
CONFIDENTIAL INFORMATION herein and any other remedies available, such as return
of fees, shall not be waived and shall survive termination.

11.03    XEROX reserves the right, in whole or in part, in the exercise of its
discretion, to terminate this Agreement upon not less than thirty (30) days
written notice to DEVELOPER. In the event of termination or upon expiration of
this Agreement, DEVELOPER shall return to XEROX any and all documents,
materials, work product and all copies made thereof, which were obtained by
DEVELOPER from XEROX or which were developed by DEVELOPER as a result of the
work performed hereunder. In the event XEROX terminates this Agreement prior to
its expiration date, XEROX' sole obligation shall be to pay DEVELOPER for the
work completed as of the date of termination.

11.04    Subject to Attachment V, DEVELOPER reserves the right, in whole or in
part, in the exercise of its discretion, to terminate the distribution portions
of this Agreement upon not less than [ * ] days written notice to XEROX if
DEVELOPER, in its sole discretion, determines that it shall discontinue the
manufacture of the Underlying Software and therefore the LICENSED SOFTWARE. In
the event of termination or upon expiration of this Agreement, XEROX shall
return to DEVELOPER any and all documents, materials, work product and all
copies made thereof, which were obtained by XEROX from DEVELOPER; provided,
however, that XEROX may retain such portion of the foregoing to the extent
necessary to continue to provide ongoing support to existing End-Users in
accordance with Attachment IV, and further provided that such End-Users' right
to use the LICENSED SOFTWARE shall continue subject to the terms of each
individual End-User Agreement.

XII.     INDEMNIFICATION

12.01    DEVELOPER represents and warrants that it has sufficient right, title
and interest in and to the Underlying Software and the LICENSED SOFTWARE to
enter into this Agreement and further warrants that it is not aware that the
Underlying Software or LICENSED SOFTWARE infringes any patent, copyright or
other proprietary right of a third party and that it has not been notified by a
third party of a possibility that the Underlying Software or LICENSED SOFTWARE
might infringe any patent, copyright or other proprietary right of a third
party.

12.02    DEVELOPER shall indemnify, defend and hold XEROX COMPANIES harmless
from, and pay any judgment for, any claim, action or other proceeding brought
against any XEROX COMPANY arising from the use of the LICENSED SOFTWARE
(including reasonable attorneys' fees incurred in connection with the
foregoing), providing that such XEROX COMPANY promptly notifies DEVELOPER in
writing of any action or claim, allows DEVELOPER, at DEVELOPER'S expense, to
direct the defense, gives DEVELOPER full information and reasonable assistance
required to defend such suit, claim or proceeding, at no out-of-pocket expense
to XEROX, and allows DEVELOPER to pay any judgment, provided further that
DEVELOPER shall have no liability for any claim, action or other proceeding
based upon acts or omissions by XEROX or for settlements or costs incurred
without the knowledge of DEVELOPER. Any claim for indemnification hereunder
shall be calculated on an after-tax basis and shall be after consideration of
any insurance recoveries received by any XEROX COMPANY. To avoid infringement,
DEVELOPER may, at its option, and at no charge to XEROX, obtain a

                                                                          PAGE 4

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   5
license or right to continue the use of the LICENSED SOFTWARE, or modify the
LICENSED SOFTWARE so it no longer infringes, but is still an equivalent of the
LICENSED SOFTWARE, or substitute an equivalent of the LICENSED SOFTWARE, or, if
none of the foregoing are commercially reasonable, refund to XEROX all fees paid
for the LICENSED SOFTWARE. DEVELOPER shall not have any obligation under this
Section 12.02 to the extent third-party claim is based on: (i) use of any
altered version of the LICENSED SOFTWARE not authorized in writing by DEVELOPER.
(ii) use, operation or combination of the LICENSED SOFTWARE on or with programs,
data, equipment or documentation not provided by DEVELOPER; and/or (iii) any
activities of XEROX or its representatives after DEVELOPER has notified XEROX
that such activities may result in the infringement of the intellectual property
rights of any third party. This Section 12.02 states that entire liability of
DEVELOPER and the exclusive remedy of XEROX with respect to any alleged
infringement of third-party rights by the LICENSED SOFTWARE or any part thereof.

12.03    XEROX shall indemnify and hold DEVELOPER free and harmless from and
against any and all costs (including attorneys' fees), liabilities, expenses,
claims, demands, actions, or causes of action that may be incurred by or
threatened against DEVELOPER and that arise out of (i) the failure of XEROX or
its employees, representatives, agents or dealers ("Representatives") to comply
with XEROX's obligations under Attachment V; (ii) any misrepresentation by XEROX
or its Representatives in connection with DEVELOPER or the LICENSED SOFTWARE;
and (iii) any other wrongful conduct of XEROX and the Representatives in
connection with this Agreement. Notwithstanding the foregoing, XEROX shall have
no obligation under this Section 12.03 unless DEVELOPER promptly notifies XEROX
in writing of any action or claim, allows XEROX, at XEROX's expense, to direct
the defense, gives XEROX full information and reasonable assistance required to
defend such suit, claim or proceeding, at no out-of-pocket expense to DEVELOPER,
and allows XEROX to pay any judgment, provided further that XEROX shall have no
liability for any claim, action or other proceeding based upon acts or omissions
by DEVELOPER or for settlements or costs incurred without the knowledge of
XEROX.

XIII.    DISCLAIMER

13.01    IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR LOST
CONTRACTS OR LOST PROFITS OR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES RELATING TO THIS AGREEMENT HOWEVER CAUSED UNDER A CLAIM OF ANY TYPE OR
NATURE BASED ON ANY THEORY OF LIABILITY (INCLUDING CONTRACT, TORT OR WARRANTY)
EVEN IF THE POSSIBILITY OF SUCH DAMAGES HAS BEEN COMMUNICATED. DEVELOPER'S TOTAL
LIABILITY TO XEROX FOR ANY OBLIGATION UNDER THIS AGREEMENT SHALL NOT EXCEED (i)
THE FEES PAID BY XEROX TO DEVELOPER PURSUANT TO ATTACHMENT II, IF SUCH LIABILITY
RELATES TO THE DEVELOPMENT OF THE LICENSED SOFTWARE, OR (ii) THE FEE PAID BY
XEROX TO DEVELOPER PURSUANT TO ATTACHMENT III FOR THE SPECIFIC UNIT OF LICENSED
SOFTWARE IN QUESTION, IF SUCH LIABILITY RELATES TO PURCHASED UNITS OF LICENSED
SOFTWARE. THE LIMITATIONS SET FORTH IN THIS PARAGRAPH SHALL NOT APPLY TO THE
PARTIES' INDEMNIFICATION OBLIGATIONS STATED IN ARTICLE 12, WHICH SHALL BE
GOVERNED BY THEIR TERMS. Notwithstanding anything else to the contrary,
DEVELOPER will in no event refund more than one license fee per unit of LICENSED
SOFTWARE, which refund, if required, will be paid to XEROX who agrees that it
will be remit such amount to the End User.

XIV.     FORCE MAJEURE

14.01    Neither party shall be liable to the other for its failure to perform
any of its obligations hereunder during any period in which such performance is
delayed by circumstances beyond its reasonable control, provided that the party
experiencing such delay promptly notifies the other party of the delay.

XV.      ETHICAL STANDARDS

15.01    DEVELOPER agrees that, with respect to its role as supplier to XEROX
including any interaction with any employee of XEROX, it shall not: (1) give or
offer to give any gift or benefit to said employee, (2) solicit or accept any
information, data, services, equipment, or commitment from said employee unless
same is (i) required under a contract between XEROX and DEVELOPER, or (ii) made
pursuant to a written disclosure Agreement between XEROX and DEVELOPER, or (iii)
specifically authorized in writing by XEROX' management, (3) solicit or accept
favoritism from said employee, and (4) enter into any outside business
relationship with said employee without full disclosure to, and prior approval
of, Xerox management. As used herein: "employee" includes members of the
employee's immediate family and household, plus any other person who is
attempting to benefit from his or her relationship to the employee.

                                                                          PAGE 5

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   6
"DEVELOPER" includes all employees and agents of DEVELOPER. "Gift or benefit"
includes money, goods, services, discounts, favors and the like in any form but
excluding low value advertising items such as pens, pencils and calendars.
"Supplier" includes prospective, current and past suppliers, and "favoritism"
means partiality in promoting the interest of DEVELOPER over that of other
suppliers. Such activity by DEVELOPER shall constitute breach of contract by
DEVELOPER and may further result in DEVELOPER'S debarment.

XVI.     CONFIDENTIAL INFORMATION

16.01    This Agreement supersedes any prior agreement as to the Underlying
Software or the LICENSED SOFTWARE.

16.02    Each party (the "Receiving Party") agrees not to intentionally disclose
or intentionally make available to any third party information received from the
other party (the "Disclosing Party") (hereinafter referred to as "CONFIDENTIAL
INFORMATION") in any form without the express written approval of the Disclosing
Party.

16.03    The Receiving Party shall not use such CONFIDENTIAL INFORMATION except
to the extent necessary to perform under this Agreement and shall not
intentionally circulate the CONFIDENTIAL INFORMATION within its own organization
except to those with a specific need to know such CONFIDENTIAL INFORMATION. If
written approval by the Disclosing Party is given to the Receiving Party to
disclose CONFIDENTIAL INFORMATION to a third party, the Receiving Party shall
impose similar confidential restrictions on such third party to whom it
discloses such CONFIDENTIAL INFORMATION.

16.04    The obligations on the Receiving Party recited herein shall terminate
with respect to any particular portion of such CONFIDENTIAL INFORMATION when and
to the extent that it is or becomes:

         (a)      Part of the public domain through no fault of the Receiving
                  Party;

         (b)      Communicated by the Disclosing Party to a third party free of
                  any obligation of confidence;

         (c)      Independently developed by the Receiving Party without any
                  reference to the CONFIDENTIAL INFORMATION; or

         (d)      Known to the Receiving Party free of any obligation of
                  confidence.

16.05    In no event shall the obligation of the Receiving Party as recited in
16.03 with respect to the CONFIDENTIAL INFORMATION extend beyond three (3) years
from the date of disclosure.

16.06    Upon request by the Disclosing Party after Approval by XEROX of the
LICENSED SOFTWARE or termination of this Agreement, whichever occurs first, the
Receiving Party agrees to promptly return the CONFIDENTIAL INFORMATION to the
Disclosing Party.

XVII.    ASSIGNMENT

17.01    This Agreement may not be assigned or transferred by either party
without the prior written approval of the other party; provided that DEVELOPER
may assign its rights to any purchaser of all or substantially all of its
business, and XEROX may assign its rights hereunder, or any portion thereof, to
any subsidiary or affiliate of XEROX or to any purchaser of all or substantially
all of its business for which the LICENSED SOFTWARE is then licensed. Subject to
the limitations heretofore expressed, this Agreement shall inure to the benefit
of and be binding upon the parties, their successors, administrators, heirs and
assigns.

XVIII.   MODIFICATION

18.01    This Agreement constitutes the entire Agreement of the parties as to
the subject matter hereof and supersedes all prior and contemporaneous
communications. This Agreement shall not be modified, except by a written
Agreement signed by duly authorized representatives of DEVELOPER and XEROX.

XIX.     BANKRUPTCY

19.01    To the extent permitted by applicable law (including II U.S.C. Section
365) the non-defaulting party may terminate this Agreement immediately by
written notice to the other in the event the other party makes an assignment for
the benefit of its creditors, admits in writing an inability to pay debts as
they mature, a trustee or receiver is appointed respecting all or a substantial
part of the other party's assets, or a proceeding is instituted by or against
the other party under any provision of the Federal Bankruptcy Act and is
acquiesced in or is not dismissed within sixty (60) days, or results in an
adjudication of bankruptcy. To the extent applicable law prevents the
non-defaulting party from terminating this Agreement, if it should wish to do so
as described above, then the parties shall have only those rights and remedies
permitted by applicable law, including the United States Bankruptcy Act,
including but not limited to II U.S.C. Section 365. However, XEROX, as the
non-defaulting party, has the unrestricted right, at its option, not to
terminate this Agreement and to continue as the exclusive distributor of the
LICENSED SOFTWARE.

                                                                          PAGE 6

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   7
XX.      COMPLIANCE WITH THE LAW

20.01    DEVELOPER represents and warrants compliance with all Federal, State
and local laws, ordinances and regulations applicable to this Agreement
including, but not limited to, applicable requirements of (a) the Fair Labor
Standards Act, (b) Executive Order 11246(c) the Vietnam Era Veterans
Readjustment Assistance Act and the Rehabilitation Act.

XXI.     NONPUBLICITY

21.01    Without prior written consent of the other party, neither party shall
(a) make any news release, public announcement, denial or confirmation of this
Agreement or its subject matter, or (b) advertise or publish any facts relating
to this Agreement.

XXII.    CONTROLLING LAW

22.01    This Agreement shall be governed and construed in accordance with the
laws of the State of New York.

XXIII.   GENERAL PROVISIONS

23.01    WAIVER Failure of either party to require strict performance by the
other party of any provision shall not affect the first party's right to require
strict performance thereafter. Waiver by either party of a breach of any
provision shall not waive either the provision itself or any subsequent breach.

23.02    NO AGENCY It is agreed and understood that neither XEROX nor DEVELOPER
has any authority to bind the other with respect to any matter hereunder. Under
no circumstances shall either XEROX or DEVELOPER have the right to act or make
any commitment of any kind to any third party on behalf of the other or to
represent the other in any way as an agent.

23.03    BAILMENT All right, title and interest in and to any and all equipment
or other materials provided by XEROX to DEVELOPER to further the purposes of
this Agreement ("Xerox Property") shall remain at all times in XEROX. DEVELOPER
holds Xerox Property as bailee and shall not substitute any property for Xerox
Property, use such Xerox Property except for filling XEROX orders, or reproduce
Xerox Property. DEVELOPER shall make entries in its books showing that Xerox
Property is held for the account of XEROX and shall furnish XEROX on demand a
true and complete inventory of Xerox Property held by DEVELOPER for any period
of time requested by XEROX. While in DEVELOPER'S custody or control Xerox
Property shall (a) be plainly marked or otherwise identified as "Property of
Xerox Corporation" and stored in a separate area in DEVELOPER'S place of
business, (b) be held at DEVELOPER'S sole risk, (c) be kept insured by DEVELOPER
at its own expense in an amount equal to the then current replacement cost with
loss payable to XEROX. DEVELOPER shall return Xerox Property to XEROX
immediately upon demand.

23.04    SURVIVAL The provisions of this Agreement shall, to the extent
applicable, survive the expiration or any termination hereof.

23.05    HEADINGS The headings and titles of the sections of the Agreement are
inserted for convenience only and shall not affect the construction or
interpretation of any provision.

23.06    SEVERABILITY If any provision of the Agreement is held invalid by any
law, rule, order or regulation of any government, or by the final determination
of any state or federal court, such invalidity shall not affect the
enforceability of any other provisions not held to be invalid.

23.07    ENTIRE AGREEMENT This Agreement, the Attachments, and the Source Code
Escrow Agreement between XEROX, DEVELOPER and Fort Know Escrow Services Inc.
dated July 31, 2001 which is hereby incorporated by reference and made a part
hereof, constitute the entire Agreement of the parties as to the subject matter
hereof and supersede any and all prior oral or written memoranda, understandings
and Agreements as to such subject matter.

23.08    NO THIRD PARTY BENEFICIARIES This Agreement is not intended to inure to
the benefit of any third party.

XXIV.    ATTACHMENTS

         24.01 THE TERMS AND CONDITIONS ON ATTACHMENTS "I," "II," "III," "IV,"
         "V," "VI," "VII," "VIII," "IX" ARE ATTACHED HERETO AND MADE A PART
         HEREOF.

                                                                          PAGE 7

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   8
<TABLE>
<S>                                                <C>
XEROX CORPORATION                                  T/R SYSTEMS, INC.:

By:  Harvey L. Huddleston                          By: Michael Kohlsdorf

Sig:      /s/ Harvey L. Huddleston                 Sig:       /s/ Michael Kohlsdorf
      ------------------------------------                -------------------------------------

Title: V.P./G.M. Alliances & Partnerships          Title: President and Chief Executive Officer

Date:     7/31/01                                  Date:    7/31/01
</TABLE>

                                                                          PAGE 8

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   9
                         ATTACHMENT I -- SPECIFICATIONS

DEFINITIONS

UNDERLYING SOFTWARE

T/R Systems, Inc. M@estro Software

SPECIFICATIONS OF LICENSED SOFTWARE

A M@estro based software program for use with a cluster of printers using
multiples of [ * ] model printers, which software has the functionality as
detailed in the document entitled M@estro Version 1.0: Product Specification,
dated July 23, 2001, and as limited with respect to each XEROX printer as
outlined in the document Licensed Software Xerox Printers Configuration &
Communication Functionality, attached hereto as Attachment VIII, which
attachment shall be updated as provided in such attachment by the agreement of
both XEROX and DEVELOPER.

ACCEPTANCE CRITERIA

The test attached hereto as Attachment IX shall be used to determine whether the
LICENSED SOFTWARE conforms to the Specifications in all material respects, which
test shall be updated as provided in such attachment by the agreement of both
XEROX and DEVELOPER, and upon successful completion of such test with respect to
each XEROX printer, as described in the Specifications, the LICENSED SOFTWARE
will be deemed to have been accepted by XEROX with respect to such printer.

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   10
                       ATTACHMENT II -- DELIVERY AND FEE

                              SCHEDULE A - DELIVERY

DEVELOPER agrees to provide delivery to XEROX in accordance with the below
expressed DELIVERY MILESTONE dates. XEROX agrees to deliver to DEVELOPER the
printers described in Schedule B on the dates agreed to by both parties.

DEFINITIONS

"LAUNCH READY CODE" means code that meets the specifications set forth in
Attachment I in all material respects and that is ready for customer
installation.

                                DELIVERY SCHEDULE

<TABLE>
<CAPTION>
PLATFORM             PRINTER                       DELIVERY DATE
                                                   LAUNCH READY CODE
<S>                  <C>                           <C>
-------------------- ----------------------------- ----------------------------

[  *  ]              [  *  ]                       [  *  ]
-------------------- ----------------------------- ----------------------------

[  *  ]              [  *  ]                       [  *  ]
-------------------- ----------------------------- ----------------------------

[  *  ]              [  *  ]                       [  *  ]
-------------------- ----------------------------- ----------------------------

[  *  ]              [  *  ]                       [  *  ]
-------------------- ----------------------------- ----------------------------

[  *  ]              [  *  ]                       [  *  ]
-------------------- ----------------------------- ----------------------------
</TABLE>

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   11
                       ATTACHMENT II -- DELIVERY AND FEE

                              SCHEDULE B - FEE

In consideration of DEVELOPER (1) providing delivery to XEROX in accordance with
the below expressed DELIVERY MILESTONE dates and (2) meeting the XEROX
acceptance criteria expressed by XEROX in Attachment I of the Agreement, XEROX
agrees to pay DEVELOPER a fee of [ * ] and deliver to DEVELOPER for development
[ * ], per the DELIVERY AND FEE Schedule defined below:

DEFINITIONS

"LAUNCH READY CODE" means code that meets the specifications set forth in
Attachment I in all material respects and that is ready for customer
installation.

<TABLE>
<CAPTION>
                                           % OF
          DELIVERY                          TOTAL       $FEE
         MILESTONE            DATE           FEE       $(000)
         ---------            ----         -------     ------
<S>                           <C>          <C>         <C>
Wave I
-        [  *  ]
                              [ * ]          [ * ]       [ * ]
-        [  *  ]
                              [ * ]          [ * ]       [ * ]
Wave II
-        [  *  ]
                              [ * ]          [ * ]       [ * ]
Wave III
-        [  *  ]
                              [ * ]          [ * ]       [ * ]
-        [  *  ]
                              [ * ]          [ * ]       [ * ]
</TABLE>

                                   PAGE II-2

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   12
                           ATTACHMENT III -- PRICING

In consideration of the rights granted XEROX by DEVELOPER in the Software
Development & License Agreement to which this Attachment III is attached, XEROX
shall pay DEVELOPER per the provisions of this Attachment:

DEFINITIONS

"Product" means the LICENSED SOFTWARE.

"Taxes" shall mean any and all taxes imposed or collected by any governmental
entity worldwide or any political subdivision thereof and however designated or
levied, on amounts payable to DEVELOPER for the billing and delivery of any
Product or upon sale or lease of any Product, and any taxes or amounts in lieu
thereof paid or payable in respect of the foregoing; exclusive, however, of
withholding taxes, taxes imposed upon the net income of DEVELOPER or taxes in
lieu of such net income taxes, and exclusive of any value added taxes ("VAT"),
goods and services taxes ("GST") and other similar types of taxes that are
recoverable by invoice credit or other similar credit to in a taxing
jurisdiction in which DEVELOPER may file for such credit.

1.       Prices; Payment. DEVELOPER agrees to invoice XEROX at the prices and
terms of DEVELOPER's standard price list in effect on the date DEVELOPER
receives XEROX's Order (as defined in Attachment V, the "Price List"). All
prices quoted herein are exclusive of Taxes. XEROX shall make payment for each
invoice within [ * ] days after the invoice date.

2.       Invoices. DEVELOPER shall render to XEROX an original invoice for the
Products in U.S. dollars, at the applicable price, together with any and all
Taxes appropriately determined by DEVELOPER to be due from XEROX. Such invoice
shall separately state any and all such Taxes. The invoice shall be in the form
required by the appropriate governmental agency or as otherwise mutually agreed.
The invoices shall be rendered to the persons or addresses XEROX shall
designate, including a XEROX COMPANY.

3.       Delivery; Packaging. Prices are based on delivery F.O.B. DEVELOPER's
locations in Norcross, Georgia. If DEVELOPER changes the delivery date or amount
of Products ordered in its acceptance of the Order (pursuant to Attachment V),
XEROX may reduce the number of Products ordered or cancel the Order at its
option within [ * ] days following notice from DEVELOPER. Prices for Products
shall include the cost of packaging and packing. Aforesaid packaging shall be in
conformance with Attachment VI.

4.       Price Changes. DEVELOPER may change the Price List from time to time in
its discretion, provided that such changes may not take place more than once in
any twelve month period commencing with the Effective Date. DEVELOPER will
notify XEROX of any such price changes [ * ] days prior to the changes taking
effect. Any orders received by DEVELOPER prior to such notice shall be subject
to the pre-change price. Price changes shall be exclusive of Taxes.

5.       Product Returns.

         (a)      Defective Product Returns. XEROX may return to DEVELOPER, at
DEVELOPER's option, for replacement or refund any Product that fails to meet the
warranty set forth in the Software Development and License Agreement, provided
it does so within the period specified in such agreement.

         (b)      Returns of Conforming Products from End Users. In the event an
End User wishes to return a Product within [ * ] days of purchase because such
End User has determined that he does not agree to be bound by the terms of the
End-User Agreement (as defined in Attachment V), as provided in the End-User
Agreement, XEROX shall accept such return and refund the End User the license
fee in full. If such Product's package has been opened, XEROX shall return the
Product to DEVELOPER within [ * ] days of receipt from the End User, and
DEVELOPER shall replace such opened package with a new packaged Product.

6.       Tax Matters; Royalties. To the extent any amounts payable under this
Agreement are deemed under the appropriate taxing jurisdiction to be royalties
paid to DEVELOPER and any amounts paid to DEVELOPER or to Xerox on DEVELOPER'S
behalf in respect of such royalties (or such deemed royalties) are subject to
withholding taxes, such withholding taxes shall be considered to be based upon
DEVELOPER's net income. Accordingly, payments to DEVELOPER in respect of such
royalties (or such deemed royalties) shall be made net of such withholding
taxes, and Xerox shall have no obligation to indemnify DEVELOPER for any such
withholding taxes. Xerox shall promptly furnish receipts evidencing the payment
of any such withholding taxes to DEVELOPER.

7.       Relationship. XEROX and DEVELOPER agree that the relationship between
them is one of principal and independent contractor and that neither DEVELOPER
nor its employees shall be considered employees of XEROX.

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   13
                       ATTACHMENT IV -- TECHNICAL SUPPORT

RESPONSIBILITY

DEVELOPER'S "Maintenance and Support" shall include all MAINTENANCE
MODIFICATIONS and PRODUCT FAILURE corrections for XEROX PRODUCTS.

DEFINITIONS

"PRODUCT" means the LICENSED SOFTWARE.

"DOCUMENTATION" means all written text including but not limited to manuals,
brochures, specifications and software descriptions, in electronic, printed
and/or camera ready form, and related materials customarily needed for use with
LICENSED SOFTWARE.

"MAINTENANCE MODIFICATIONS" means modifications to code or DOCUMENTATION, or
REVISIONS, including both the source code and object code thereto, which correct
PRODUCT FAILURES, support new releases of the operating systems with which the
code is destined to operate, support new input/output (I/O) devices, or provide
other updates and corrections described in Attachment IV, entitled "Technical
Support."

"PRODUCT FAILURE" means any error, unresolved problem, or defect caused by or
resulting from (1) an incorrect functioning of code, or (2) an incorrect or
incomplete statement or diagram in the DOCUMENTATION, if such error, problem, or
defect renders the code inoperable, causes the code to fail to meet
specifications thereof in any material respect, causes DOCUMENTATION to be
inaccurate or incomplete in any material respect, or causes materially incorrect
results.

SUPPORT FOR PRODUCTS During the term of this Agreement, DEVELOPER shall provide
MAINTENANCE MODIFICATION services, which will consist of DEVELOPER using its
best efforts to design, code and implement programming changes to the LICENSED
SOFTWARE and modifications to the documentation to correct reproducible PRODUCT
FAILURES therein such that the LICENSED SOFTWARE is brought into conformance
with the Specifications listed in Attachment II, and otherwise provide support
for Products [ * ], except as further set forth herein. In addition, upon
termination/ expiration of the Agreement as applicable, and for at least [ * ]
years after the date XEROX places a final order for Products to be delivered
hereunder, DEVELOPER agrees to make available to XEROX, at mutually agreed
prices and upon reasonable terms, support for Products which shall consist of
using commercially reasonable efforts to correct PRODUCT FAILURES and provide
corrected executable code to XEROX for direct or indirect distribution to End
Users and providing telephone technical support to XEROX' or XEROX' authorized
phone support centers with respect to such Product and the related Licensed
Software. [ * ] If a PRODUCT FAILURE cannot be resolved by telephone technical
support, DEVELOPER shall provide on site technical support to XEROX at the then
current published DEVELOPER per diem rates to solve PRODUCT FAILURES within the
Resolution Time as stated herein.

LIMITATIONS ON SUPPORT All services described on this Attachment IV will be
provided by DEVELOPER only with respect to the latest version of Licensed
Software and one previous version. For the purposes of counting the two software
versions supported in such a case, Maintenance Modifications are not counted.
Further, all services described on this Attachment IV will be provided by
DEVELOPER only with respect to such portions of the Licensed Software that are
owned by DEVELOPER or by XEROX, and no services will be provided with regard to
portions of the Licensed Software owned by third parties. DEVELOPER is not
making any warranty or representation that all errors can or will be corrected.

FIRST AND SECOND LEVEL SUPPORT RESPONSIBILITY XEROX will be the initial point of
contact with its End Users and provide End-User assistance.

DEVELOPER will provide reasonable additional support and training when requested
by XEROX during the pre-sale and pre-install phases of the Product(s) at
DEVELOPER's then-standard time and material rates, plus, if required, reasonable
travel expenses.

During the installation of the Product(s), XEROX will provide first level
support to its End User to enhance End User satisfaction. DEVELOPER will provide
such technical assistance as may be reasonably required by XEROX in this regard;
at DEVELOPER's then-standard time and material rates, plus, if required,
reasonable travel expenses.

During the post-sale and post-installation period, XEROX will provide second
level telephone hotline

*        Confidential information has been omitted and filed separately with the
         Commission

<PAGE>   14
support to its End Users for all End User caused problems, including, but not
limited to, startup and security problems or configuration and installation
errors, and engage DEVELOPER for more involved support if needed at DEVELOPER's
then-standard time and material rates, plus, if required, reasonable travel
expenses.

THIRD LEVEL SUPPORT RESPONSIBILITY DEVELOPER will provide third level support.
DEVELOPER will cooperate with XEROX in the definition and resolution of PRODUCT
FAILURES reported by XEROX, maintaining contact with XEROX throughout the
resolution process and gathering additional diagnostic information required or
duplicating problems whenever possible in a controlled environment.

DEVELOPER will maintain an integrated file record of PRODUCT FAILURES reported,
whether or not it has been resolved and the nature of the solution. Upon the
occurrence of a PRODUCT FAILURE for which a solution has previously been
developed, DEVELOPER shall communicate the solution to XEROX.

DEVELOPER will report PRODUCT FAILURES to XEROX. DEVELOPER will perform the
analysis of reported PRODUCT FAILURES and undertake commercially reasonable
efforts to develop solutions or bypasses. DEVELOPER will maintain all available
information and materials in machine readable format related to any PRODUCT
FAILURES, resolved or unresolved.

If XEROX notifies DEVELOPER or DEVELOPER identifies a reproducible PRODUCT
FAILURE, whereby the Documentation is inconsistent with the performance of the
Product(s), then DEVELOPER will use its commercially reasonable efforts to
implement programming or Documentation changes to ensure conformity. DEVELOPER
will provide information, where such information is not clearly described in the
associated documentation, and consulting assistance regarding the operation of
the Product(s) in order to enable XEROX to perform its support responsibilities.

DEVELOPER will maintain current updated master libraries for the Product(s)
including all programs and documentation and inform XEROX of any changes or
updates.

SPAR PROCESS DEVELOPER shall use best efforts to correct PRODUCT FAILURES. In
addition, DEVELOPER shall provide[ * ] telephone technical support with respect
to Licensed Software during the term of this Agreement. [ * ] If a PRODUCT
FAILURE cannot be resolved by telephone technical support, DEVELOPER shall
provide on site technical support to XEROX at the then current published
DEVELOPER per diem rates to solve PRODUCT FAILURES within the Resolution Time as
stated below. Any Field/End User identified PRODUCT FAILURES will be managed
through the XEROX Software Problem Action Request Process (SPAR Process).

"SPAR" means SOFTWARE PROBLEM ACTION REQUEST.

a.       SPAR(s) are determined by severity of the PRODUCT FAILURE.

b.       Severity levels are defined as follows:

         (i)      Severity Level 1 shall be defined as a "catastrophic PRODUCT
                  FAILURE" wherein the End User's system is down, and/or the
                  user has no production capability.

         (ii)     Severity Level 2 shall be defined as a "severe PRODUCT
                  FAILURE" wherein the End User's system is up, but production
                  capability is seriously degraded.

         (iii)    Severity Level 3 shall be defined as a "moderate PRODUCT
                  FAILURE" wherein the End User's system is up, but production
                  capability is reduced.

         (iv)     Severity Level 4 shall be defined as a "minor PRODUCT FAILURE"
                  wherein the End User's system is up, with no significant
                  impact to production.

DEVELOPER will respond to written SPARs (submitted by XEROX) in which XEROX has
identified the Severity Level. DEVELOPER will use commercially reasonable
efforts to perform the required modifications, if required, for the four
severity levels and associated time frames as shown in Table A below. Resolution
times are in working days, i.e., normal business days, measured from the day the
SPAR is received by XEROX.

DEVELOPER will use best efforts to meet Level 1-4 SPAR "Investigation Time" and
Resolution Time" time frames shown in TABLE A below in performing the required
MAINTENANCE MODIFICATIONS. "CD" means calendar days and "WD" means working days,
i.e., normal business days.

*        Confidential information has been omitted and filed separately with the
         Commission

<PAGE>   15
                                     TABLE A

<TABLE>
<CAPTION>
       Level             Investigation          Resolution
                             Time                  Time

                           (Days)                (Days)

       <S>               <C>                    <C>
        1                 [  *  ]               [  *  ]

        2                 [  *  ]               [  *  ]

        3                 [  *  ]               [  *  ]

        4                 [  *  ]               [  *  ]
</TABLE>

"INVESTIGATION TIME" is defined as the time necessary to 1) acknowledge the
receipt of a PRODUCT FAILURE, and request additional information that may be
necessary to analyze the PRODUCT FAILURE or 2) request any additional
information as is necessary for the DEVELOPER technical support group to
escalate the PRODUCT FAILURE to the DEVELOPER QA or engineering groups for
resolution. In the event of such escalation, the DEVELOPER technical support
group will be responsible for monitoring the timeliness of the QA/Engineering
response, as well as keeping XEROX' technical support group updated as to the
status of the PRODUCT FAILURE.

"RESOLUTION TIME" is defined as the time necessary to either: 1) resolve the
PRODUCT FAILURE where it is proven to be the fault of DEVELOPER software or
hardware by providing a software fix or work around, repairing or replacing the
hardware, explaining functionality, or providing other solution, or; 2) provide
reasonable explanation or evidence that the PRODUCT FAILURE is not the result of
DEVELOPER hardware or software; or 3) XEROX and DEVELOPER mutually agree that no
repair, replacement, or fix or other work around is required or that no further
action is required on the part of DEVELOPER with respect to the PRODUCT FAILURE.

If DEVELOPER fails to meet the above resolution times with regard to SPAR
Severity Level 1, at XEROX' option, XEROX may require DEVELOPER to provide a
refund or a credit of [ * ] of the applicable Product price for all Purchase
Orders placed for any Products during each period of time in which DEVELOPER
fails to meet the resolution time set forth above.

Should DEVELOPER at any time fail to achieve a satisfactory MAINTENANCE
MODIFICATION for SPAR Severity Level 1 or 2 for at least [ * ] of the
occurrences over a period of at least one year within the time frames set forth
previously in Table A, at XEROX's option (a) without termination of this
Agreement, the parties shall negotiate in good faith to reach an agreement
reducing the price per unit of LICENSED SOFTWARE and adjusting the time frames
set forth in Table A, or (b) XEROX may terminate this Agreement (subject to the
survival provisions of Section 23.04) and, provided XEROX has paid all fees
hereunder due to DEVELOPER, obtain release of the source code for the LICENSED
SOFTWARE pursuant to the Source Code Escrow Agreement and, at the sole expense
and risk of XEROX attempt to correct the PRODUCT FAILURE in question, including
making modifications to such source code to the extent necessary. If XEROX
succeeds in correcting such PRODUCT FAILURE then: (1) XEROX will disclose to
DEVELOPER in detail the specifics of any successful correction(s) that it makes
within five (5) business days after the corrections are made; (2) the corrected
version of the Licensed Software in question will deemed to be part of the
Licensed Software for all purposes; and (3) XEROX shall have the right to retain
for purposes of support hereunder such source code for the [ * ] support
following termination of this Agreement referred to in this Attachment IV,
following which XEROX shall surrender all copies of such source code to
DEVELOPER. XEROX'S right to use the source code under this paragraph shall be
limited to the right to provide support to then existing End Users of the
Licensed Software and with respect to the latest version of the LICENSED
SOFTWARE and one previous version in accordance with the terms of the Source
Code Escrow Agreement and this Attachment IV and for no other purpose.

The services set forth herein shall be expressly contingent upon (1) XEROX
promptly reporting any PRODUCT FAILURES in the LICENSED SOFTWARE or related
documentation to DEVELOPER in writing; (2) Not modifying the LICENSED SOFTWARE
without written consent of the DEVELOPER; and (3) XEROX utilizing the LICENSED
SOFTWARE only as intended.

Notwithstanding anything in this Attachment to the contrary, DEVELOPER's
obligations to meet the SPAR Investigation Time and Resolution Time in Table A
shall apply only if the XEROX engines or equipment necessary to resolve such
PRODUCT FAILURES are on DEVELOPER's premises (and XEROX has fulfilled all its
maintenance obligations with respect to such engines or equipment). If such
engines or equipment are not on DEVELOPER's premises (or have not been
maintained by XEROX to the extent required), XEROX and DEVELOPER shall mutually
agree on the Investigation Time and Resolution Time for a PRODUCT FAILURE and
any costs incurred to resolve such PRODUCT FAILURE.

*        Confidential information has been omitted and filed separately with the
         Commission

<PAGE>   16
DEVELOPER SUPPORT LOCATION All services provided under this Maintenance and
Support Agreement shall be provided from DEVELOPER'S facility unless DEVELOPER
and XEROX mutually agree that it is necessary to provide such services at XEROX'
facility.

TRAINING COURSES/MATERIALS DEVELOPER shall provide to XEROX and XEROX COMPANIES,
[ * ] for labor or materials, [ * ] training sessions for XEROX and XEROX
COMPANIES sales personnel with respect to the marketing of Product(s) at
locations agreed to be determined by the parties. Such training will be designed
to have XEROX' sales and trainees achieve the same level of knowledge and
competency as required by DEVELOPER as a prerequisite to the training of its own
personnel to sell its Product(s). The goal of this training is to ensure that
XEROX' sales organization can effectively handle End User questions. The course
will be provided in accordance with a mutually agreeable schedule and location.
DEVELOPER will prepare complete training information following specific examples
provided by XEROX as to training components, formats and supporting
documentation. XEROX will provide DEVELOPER samples of similar training
documentation and materials such that DEVELOPER may develop its material with
the same general look and feel. DEVELOPER will cover training content
development costs and XEROX will cover production and deployment costs. XEROX
and DEVELOPER will work together to deploy the XEROX sales training events.
XEROX shall be given one copy of such training materials which it may copy and
distribute for purposes of training other employees or agents or other
representatives of XEROX and XEROX COMPANIES.

*        Confidential information has been omitted and filed separately with the
         Commission

<PAGE>   17
               ATTACHMENT V -- DISTRIBUTION OF LICENSED SOFTWARE

1        Upon completion of the development of the LICENSED SOFTWARE and
approval of the LICENSED SOFTWARE pursuant to Article VIII, XEROX COMPANIES have
the exclusive right to distribute the LICENSED SOFTWARE themselves, or through
authorized dealers or distributors, under the terms and conditions set forth in
this Attachment V.

2        XEROX will submit written purchase orders to DEVELOPER (the
"Order(s)"), specifying quantities of the LICENSED SOFTWARE ordered and
requested delivery dates, each of which dates shall be no earlier than five (5)
business days after the date on which DEVELOPER receives the order in question.
Orders issued by a Xerox Company operating outside of the United States shall
also specify, when appropriate, the particular Xerox Company (including Xerox)
that is to be invoiced for the LICENSED SOFTWARE specified therein. The parties
acknowledge that Xerox makes no commitment concerning the number of units of
LICENSED SOFTWARE it may elect to acquire for resale under the terms of this
Agreement, and that such acquisition shall only be made upon issuance from time
to time of Xerox purchase orders therefor.

3        Subject to supply, DEVELOPER will accept any Orders within [[ * ] days]
of receipt of such Order. Such acceptance may include a different delivery time.
To the extent that the terms of any Order delivered in connection with any
LICENSED SOFTWARE hereunder conflict with the terms of this Agreement, the terms
of this Agreement shall govern.

4        DEVELOPER and Xerox shall comply with all applicable laws and
regulations respecting the export, directly or indirectly, of any technical data
acquired from the other under this Agreement or any LICENSED SOFTWARE utilizing
any such data to any country the laws or regulations of which at the time of
export, require an export license or other government approval including but not
limited to first obtaining such license or approval.

5        Payment for any Orders shall be pursuant to the provisions of Article V
and Attachment III of this Agreement.

6        DEVELOPER shall deliver to XEROX the number of units of the LICENSED
SOFTWARE in packages (described on Attachment VI) provided for in Section 2 of
this Attachment, each package containing a copy of the LICENSED SOFTWARE, as it
may be updated by DEVELOPER from time to time; a copy of the DOCUMENTATION in
hard copy form, as it may be updated by DEVELOPER from time to time; and a copy
in hard copy form of the license agreement attached hereto as Attachment VII
governing the use of the LICENSED SOFTWARE by End-Users, as such form of
agreement may be modified from time to time by DEVELOPER and provided to XEROX
with the LICENSED SOFTWARE (the "End-User Agreement"), which terms must first be
accepted by the End-User in the manner described in the End-User Agreement.

7        XEROX shall not remove or alter any proprietary rights notices placed
in or on the LICENSED SOFTWARE by DEVELOPER. XEROX acknowledges that DEVELOPER's
trademarks, trade names, service marks ("DEVELOPER's Marks") are owned solely
and exclusively by DEVELOPER and agrees to use the DEVELOPER's Marks only in the
form and manner and with appropriate legends indicating registration and/or
ownership as prescribed by DEVELOPER.

8        LICENSED SOFTWARE shall be distributed in a hard copy only, as part of
a package. XEROX may not otherwise distribute the LICENSED SOFTWARE. LICENSED
SOFTWARE sold by XEROX are subject to the terms and conditions specified in the
End-User Agreement. The End-User Agreement shall contain the terms under which
an End User of XEROX will receive, hold and use the LICENSED SOFTWARE and any
obligations between DEVELOPER and XEROX's End Users.

9        DEVELOPER may discontinue the manufacture of the LICENSED SOFTWARE or
change the LICENSED SOFTWARE materially, provided that DEVELOPER gives XEROX not
less than [ * ] days' prior written notice of such LICENSED SOFTWARE
discontinuance or change. Provided XEROX's requested delivery times are within
the normal order-delivery lead time, DEVELOPER agrees to use all reasonable
efforts to honor all XEROX purchase orders for such discontinued LICENSED
SOFTWARE.

10       XEROX agrees and acknowledges that it shall have no right under this
Agreement or otherwise to (i) incorporate the LICENSED SOFTWARE into
any other software or hardware product, or permit such incorporation; (ii)
knowingly distribute the LICENSED SOFTWARE, DOCUMENTATION or any portion
thereof, or permit such distribution to any third party for the purpose of
resale, redistribution, or disclosure to any other person or entity; (iii)
modify the LICENSED SOFTWARE, DOCUMENTATION or End-user Agreement or any portion
thereof; (iv) disassemble, decompile or otherwise reverse engineer the LICENSED
SOFTWARE or otherwise attempt to learn the source code, structure, algorithms or
ideas underlying the LICENSED SOFTWARE; (v) disclose or permit the disclosure of
any unique code associated with each copy of the LICENSED SOFTWARE that would
allow an End-User to use the LICENSED SOFTWARE; or (vi) take any action adverse
or contrary to the End-User Agreement.

                                    PAGE V-1

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   18
               ATTACHMENT VI -- DESCRIPTION OF PRODUCT PACKAGING

[  *  ]

                                   PAGE VI-1

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   19
                      ATTACHMENT VII -- END-USER AGREEMENT

M@estro(R) Software License Agreement

IMPORTANT--READ THESE TERMS CAREFULLY BEFORE USING OR INSTALLING THIS SOFTWARE.
BY USING OR INSTALLING THIS SOFTWARE, YOU ACKNOWLEDGE THAT YOU HAVE READ THIS
SOFTWARE LICENSE AGREEMENT, THAT YOU UNDERSTAND IT, AND THAT YOU AGREE TO BE
BOUND BY ITS TERMS. IF YOU DO NOT AGREE TO THE TERMS AND CONDITIONS OF THIS
SOFTWARE LICENSE AGREEMENT, PROMPTLY RETURN THIS PACKAGE TO YOUR SUPPLIER WITHIN
THIRTY (30) DAYS FROM YOUR PURCHASE, AND YOUR MONEY WILL BE REFUNDED.

This Software License Agreement enumerates the terms and conditions upon which
T/R Systems, Inc., grants use of the M@estro(R) software programs ("Software")
and M@estro(R) documentation ("Documentation") to the end-user of the M@estro(R)
digital printing system. T/R Systems, Inc., the owner and licensor of the
Software and Documentation, is referred to as "Licensor", and the end-user and
purchaser of the M@estro(R) system is referred to as the "User".

1.       LICENSE. Licensor is the exclusive owner of the Software and
Documentation. Licensor grants to User, and User accepts, a non-exclusive
license to use the Software and Documentation.

User's right to use the M@estro(R) Software and Documentation under this
Agreement is called the "License." Software means the computer programs included
within the M@estro(R) digital printing system being sold to User
contemporaneously with delivery of this Agreement (the "Purchased M@estro(R)").
Documentation means any user manual and other materials provided User relating
to the Software.

2.       AUTHORIZED USER. User alone has the right to use the Software and
Documentation. User may not allow another person or entity to use the Software
or Documentation, except to the extent permitted by Section 4 of this Agreement.

3.       AUTHORIZED USE. User may use the Software and Documentation only with
the M@estro(R)digital printing system. User may not use the Software in respect
of any other printers or any other equipment whatsoever.

Without T/R Systems' prior express written consent, User may NOT (1.) copy the
Software, (2.) copy the Documentation, other than for its internal use; (3.)
decompile, disassemble, reverse engineer, or cross-compile the Software or seek
to do any of the foregoing); (4.) merge or embed the Software into another
program; or (5.) modify or alter the Software or Documentation.

4.       ASSIGNMENT. User may assign the License to another person, but ONLY if
(1.) prior written approval is obtained from the Company, (2.) the assignment is
for the remainder of the License term, (3.) User delivers all of the Software
and Documentation to the assignee, (4.) the assignee delivers the Software
License Agreement in this form in favor of Licensor, (5.) the entire Purchased
M@estro(R)system is transferred and delivered to the assignee and (6.) the
assignee agrees in writing with T/R Systems to be bound by the terms hereof.

When User assigns this License, User's right to use the Software and
Documentation ends. User may not assign the License or direct product of the
Software or Documentation to persons located in certain countries specified by
the United States Export Administration Act.

5.       TERM. The License is effective for a term coincident with use of the
Purchased M@estro(R). Licensor may terminate the License if User violates this
Agreement. User must then return the Software and the Documentation to Licensor.

*        Confidential information has been omitted and filed separately with the
         Commission

<PAGE>   20
6.       LICENSOR'S RIGHTS. Licensor's Software and Documentation contain
confidential unpublished information protected by copyright, trade secret,
trademark and patent laws. User may not disclose the Software or Documentation
to others, or remove or alter Licensor's ownership and copyright notices on the
Software, Purchased M@estro(R) or the Documentation. User must prevent any
unauthorized use, copying, or disclosure of the Software and Documentation.
These obligations survive any termination or the License.

7.       INFRINGEMENT. User shall promptly notify Licensor if any party makes a
claim against User that the Software or Documentation infringes its rights. If
User gives Licensor sufficient notice and such claim of infringement is deemed
by T/R Systems to represent a bona fide claim, Licensor will at its option make
the Software and Documentation non-infringing, obtain for User the right to use
the Software and Documentation, or give User an appropriate refund. This is
User's sole remedy in the event of a claim of infringement.

8.       LIMITED WARRANTY AND DISCLAIMER OF OTHER WARRANTIES AND LIABILITIES.
Licensor warrants that the Software will be free of material defects for a
period of ninety (90) days immediately following the date of delivery. Should
the Software not so operate, User's exclusive remedy, and T/R System's sole
obligation under this warranty, shall be, at T/R System's sole discretion,
repair of the defect, replacement of the Software, or refund of the purchase
price paid for the Software, provided that such failure to operate was not a
result of accident, abuse, or misapplication. Any repair or replacement will be
warranted for the remainder of the original warranty period or thirty (30) days,
whichever is longer. Without limiting the generality of the foregoing, T/R
Systems shall not have any responsibility for any third party products, service,
hardware, software or other items provided with or incorporated into the
M@estro(R) digital printing system.

EXCEPT FOR THE LIMITED WARRANTY DESCRIBED ABOVE, THERE ARE NO WARRANTIES, EITHER
EXPRESSED OR IMPLIED, FOR THE SOFTWARE OR DOCUMENTATION, WHICH ARE LICENSED TO
USER "AS IS." LICENSOR EXPRESSLY DISCLAIMS ANY WARRANTY AS TO PERFORMANCE OF THE
SOFTWARE OR AS TO RESULTS USER MAY OBTAIN FROM IT. LICENSOR ALSO EXPRESSLY
DISCLAIMS ALL OTHER WARRANTIES, INCLUDING (WITHOUT LIMITATION) IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

IN NO EVENT SHALL LICENSOR, OR ANYONE ELSE WHO HAS BEEN INVOLVED IN THE
CREATION, PRODUCTION, OR DELIVERY OF THE SOFTWARE OR DOCUMENTATION, BE LIABLE
FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL OR INCIDENTAL DAMAGES RESULTING FROM
THE USE OF THE SOFTWARE OR DOCUMENTATION OR ARISING OUT OF ANY BREACH OF ANY
WARRANTY. T/R SYSTEM'S AGGREGATE LIABILITY WITH RESPECT TO ITS OBLIGATIONS UNDER
THIS SOFTWARE LICENSE AGREEMENT OR WITH RESPECT TO THE SOFTWARE AND
DOCUMENTATION OR OTHERWISE SHALL NOT EXCEED THE AMOUNT OF THE LICENSE FEE PAID
BY USER FOR THE SOFTWARE AND DOCUMENTATION.

9.       ARBITRATION. The parties hereto will attempt in good faith to resolve
any dispute or claim arising out of or relating to this Software License
Agreement promptly through negotiations between them. Subject to aforesaid the
parties hereto shall refer any dispute arising out of or in connection with this
Software License Agreement to arbitration to be carried out by a single
arbitrator agreed by the parties hereto who shall be an attorney at law
experienced in software services contracts and according to the provision of the
rules of the American Arbitration Association ("AAA") and the decision of the
arbitrator shall be final and binding on both the parties hereto. Such
arbitration shall be conducted by the Atlanta, Georgia office of the AAA in
Atlanta, Georgia. In the event that the parties fail to agree upon the selection
of the arbitration within thirty (30) days after either party's request for
arbitration under this Section 9, the arbitrator shall be chosen by AAA. The
arbitrator may in his discretion order documentary discovery, but in no event
may depositions be taken. The arbitrator will award to the prevailing party, if
any, as determined by the arbitrator, all reasonable preaward expenses of the
arbitration, including the arbitrator's fees, administrative fees, travel
expenses, out-of-pocket expenses such as copying and telephone, court costs,
witness fees, and attorneys' fees. The arbitrator shall have no authority to
award punitive damages. Judgment on the award of the arbitrator may be entered
in and enforced by any court of competent jurisdiction. The arbitrator will have
no authority to award damages in excess or in contravention of this Section 9
and may not amend or disregard any provision of this Section 9.

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   21
Notwithstanding the foregoing, no issue related to the ownership of intellectual
property shall be subject to arbitration but shall instead be subject to
determination by a court of competent jurisdiction.

10.      GENERAL. This Agreement shall be governed by the laws of the State of
Georgia and the United States. If, notwithstanding the foregoing choice of law,
the law of another jurisdiction is applied to this Agreement, then any term of
this Agreement found to be inconsistent with such law shall automatically be
deemed to be revised to the limited extent necessary to comport with such law
without affecting any of the remaining terms. Any waiver by Licensor of a breach
of this Agreement shall not constitute a waiver of any later breach. No legal
action arising out of this Agreement may be commenced by User more than one year
after the cause of action has accrued. In any legal action to enforce this
Agreement, the prevailing party shall be entitled to recover reasonable expenses
and attorneys' fees.

This Agreement represents the entire and complete agreement between the parties
hereto, and supersedes any prior agreement, oral or written, and any other
communications between the parties on the Software and Documentation. This
Agreement will be effective upon delivery of the M@estro(R) digital printing
system together with the License Software and Documentation.

T/R Systems, Inc.
1300 Oakbrook Drive
Norcross, Georgia  30093

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

[  *  ] SUBLICENSES

(1)      Only a personal, nontransferable, and nonexclusive right to use the
Product is granted to such end user;

(2) [ * ] RETAINS ALL TITLE TO THE SOFTWARE AS INCORPORATED IN THE PRODUCT, AND
ALL COPIES THEREOF, AND NO TITLE TO THE SOFTWARE, OR ANY INTELLECTUAL PROPERTY
IN THE SOFTWARE, IS TRANSFERRED TO SUCH END USER;

(3) The end user may not copy (i) the Product, except for one (1) copy for
backup or archival purposes only and only as necessary to use the Product; or
(ii) any documentation accompanying the Product. All such copies are the
proprietary information of Distributor and its licensors and suppliers and are
subject to their copyrights;

(4)      THE END USER AGREES NOT TO REVERSE ENGINEER, DECOMPILE, OR OTHERWISE
ATTEMPT TO DERIVE SOURCE CODE FROM THE PRODUCT;

(5) [ * ] is an intended third party beneficiary of the end user sublicense and
is entitled to enforce it in its own name directly against the end user;

(6) [ * ] WILL NOT BE LIABLE TO THE END USER FOR ANY GENERAL, SPECIAL, DIRECT,
INDIRECT, CONSEQUENTIAL, INCIDENTAL, OR OTHER DAMAGES ARISING OUT OF THE LICENSE
OF THE PRODUCT EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES;

(7)      Upon termination of the license, the end user will return all copies of
the Product to Distributor;

(8) [ * ] makes no warranties, express, implied or statutory, regarding the
Product and the Software, including without limitation the implied warranties of
merchantability and fitness for a particular purpose, or their equivalent under
the laws of any jurisdiction.

*        Confidential information has been omitted and filed separately with the
         Commission

<PAGE>   22
                                 ATTACHMENT VIII

                                LICENSED SOFTWARE
                                 XEROX PRINTERS
                   CONFIGURATION & COMMUNICATION FUNCTIONALITY

CONFIGURATION

The Licensed Software shall be developed in order to function in connection with
the following equipment and software:

[  *  ]

LICENSED SOFTWARE MIB AND SNMP LIST

The following table shows what MIB objects are needed by the Licensed Software
to operate correctly. An additional column has been added to show the ranking of
the MIB objects with respect to the importance of the MIB object within the
Licensed Software.

Low      The Licensed Software can operate without this value; however, some the
         Licensed Software GUI elements may be impacted.

Med      Typical very important; however, in some cases another MIB object is
         used when the primary one is unavailable.

High     Must have to operate correctly.

[  *  ]

THIS DOCUMENT IS THE CONFIDENTIAL PROPERTY OF T/R SYSTEMS, INC. AND IS INTENDED
ONLY FOR LIMITED DISTRIBUTION WITHIN T/R SYSTEMS, INC. AND XEROX CORPORATION.

*        Confidential information has been omitted and filed separately with the
         Commission
<PAGE>   23
                                  ATTACHMENT IX

                        LICENSED SOFTWARE ACCEPTANCE TEST

                                 TEST PROCEDURES

Equipment and Software Configuration requirements for testing the Licensed
Software: [ * ]

*        Confidential information has been omitted and filed separately with the
         Commission

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}]]