SCANSOFT INC
10-K/A, 2000-02-08
COMPUTER PERIPHERAL EQUIPMENT, NEC
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<PAGE>   1


                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-K/A
                                 AMENDMENT NO. 2

(Mark One)

[X]  Annual report pursuant to section 13 or 15(d) of the Securities Exchange
     Act of 1934 for the fiscal year ended January 3, 1999 or

[ ]  Transition report pursuant to section 13 or 15(d) of the Securities
     Exchange Act of 1934 for the transition period from ________________ to
     __________________

COMMISSION FILE NUMBER:  0-27038


                                 SCANSOFT, INC.
             (Exact name of registrant as specified in its charter)


<TABLE>
<S>                                                                <C>
                           DELAWARE                                             94-3156479
(State or other jurisdiction of incorporation or organization)     (I.R.S. Employer Identification No.)
</TABLE>


                               9 CENTENNIAL DRIVE
                           PEABODY MASSACHUSETTS 01960
                                 (978) 977-2000
          (Address, including zip code, and telephone number, including
            area code, of registrant's principal executive offices)


<TABLE>
<S>                                                              <C>
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:                  NONE

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:      COMMON STOCK, $0.001 PAR VALUE
                                                                     (Title of each class)
</TABLE>

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

The aggregate market value of the voting stock held by non-affiliates of the
registrant was approximately $23,752,027 as of March 26, 1999, based on $1.625
per share, the last reported sales price on the Nasdaq National Market for such
date. Shares of Common Stock held by each executive officer and director and by
each person who owns 5% or more of the outstanding Common Stock have been
excluded in that such persons may be deemed to be affiliates. This determination
of affiliate status is not necessarily a conclusive determination for other
purposes.

The number of shares of the registrant's Common Stock outstanding as of March
26, 1999 was 26,355,780.

DOCUMENTS INCORPORATED BY REFERENCE: NONE.

<PAGE>   2

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.

     (a)  The following documents are filed as a part of this Report:

          (1)  Financial Statements - See Index to Financial Statements in Item
               8 of this Report.

          (2)  Financial Statement Schedule - The following financial statement
               schedule for our fiscal years ended December 31, 1998, 1997 and
               1996 is contained in Item 8 of this Report:

               II - Valuation and Qualifying Accounts and Reserves

               Report of PricewaterhouseCoopers LLP, Independent Accountants.
               Refer to Item 8 above.

               All other schedules have been omitted as the requested
               information is inapplicable or the information is presented in
               the financial statements or related notes included as part of
               this Report.

          (3)  Exhibits - Refer to Item 14(c) below.

     (b)  Reports on Form 8-K.

          (1)  On December 8, 1998, the Registrant filed a current report on
               Form 8-K, dated December 3, 1998, to report under Item 5 the
               signing of the agreement to acquire ScanSoft and to sell its
               hardware business to Primax Electronics, Ltd., and to file, under
               Item 7, the press releases associated therewith.

     (c)  Exhibits.

          Exhibits (numbered in accordance with Item 601 of Regulation S-K)

<TABLE>
<CAPTION>
EXHIBIT NO.                         DESCRIPTION OF EXHIBITS
- -----------                         -----------------------
<S>            <C>
2.1(1)         Agreement and Plan of Merger dated December 2, 1998, between
               Visioneer, Inc., a Delaware corporation, and ScanSoft, Inc., a
               Delaware corporation.

3.1(2)         Bylaws of Registrant.

3.2(3)         Amended and Restated Certificate of Incorporation of Registrant.

4.1(3)         Specimen Common Stock Certificate.

4.2(4)         Preferred Shares Rights Agreement, dated as of October 23, 1996,
               between the Registrant and U.S. Stock Transfer Corporation,
               including the Certificate of Designation of Rights, Preferences
               and Privileges of Series A Participating Preferred Stock, the
               form of Rights Certificate and Summary of Rights attached thereto
               as Exhibits A, B and C, respectively.
</TABLE>


                                      -2-

<PAGE>   3

<TABLE>
<CAPTION>
EXHIBIT NO.                         DESCRIPTION OF EXHIBITS
- -----------                         -----------------------
<S>            <C>
4.3+           Voting Agreement dated March 2, 1999 between Xerox, Xerox Imaging
               Systems, Inc., Visioneer, Inc. and several holders of Visioneer
               common stock.

10.1(2)        Form of Indemnification Agreement.

10.2(2)**      1993 Incentive Stock Option Plan and form of Option Agreement.

10.3(2)**      1995 Employee Stock Purchase Plan and form of Subscription Agreement.

10.4(2)**      1995 Directors' Option Plan and form of Option Agreement.

10.5(5)**      1997 Employee Stock Option Plan.

10.6(5)**      Director 1997 Compensation Plan.

10.7(2)        LZW Paper Input System Patent License Agreement dated October 20,
               1995 between the Registrant and Unisys Corporation.

10.8(2)        Patent License agreement dated November 13, 1995 between the
               Registrant and Wang Laboratories, Inc.

10.9(2)        Building Lease dated May 21, 1996 between the Registrant and John
               Arrillaga, Trustee, or his Successor Trustee, UTA dated 7/20/77
               (Arrillaga Family Trust) as amended, and Richard T. Peery,
               Trustee, or his Successor Trustee, UTA dated 7/20/77 (Richard T.
               Peery, Separate Property Trust) as amended.

10.10(2)       Software License Agreement dated August 14, 1996 between the
               Registrant and Hewlett-Packard Company.

10.11(6)       Form of Employment Agreement between the Registrant and each
               individual who was an executive officer prior to the merger with
               ScanSoft and the sale of the hardware business.

10.12          Software Distribution Agreement dated April 26, 1995 between
               Xerox Imaging Systems, Inc. and Tech Data Corporation.

10.13+         Assignment, Assumption, Renewal and Modification Agreement dated
               June 18, 1997 between Xerox Imaging Systems, Inc., ScanSoft, Inc.
               and Tech Data Product Management, Inc.

10.14          Distribution Agreement dated September 22, 1993 between Ingram
               Micro, Inc. and Xerox Imaging Systems, Inc., as amended.

10.15          Gold Disk Bundling Agreement: Pagis SE & Pagis Pro, dated June
               29, 1998 between Xerox Corporation, through its Channels Group
               and ScanSoft, Inc., as amended.
</TABLE>


                                      -3-

<PAGE>   4

<TABLE>
<CAPTION>
EXHIBIT NO.                         DESCRIPTION OF EXHIBITS
- -----------                         -----------------------
<S>            <C>
10.16          Gold Disk Bundling Agreement dated March 25, 1998 between Xerox
               Corporation, Office Document Products Group and ScanSoft, Inc.

23.1+          Consent of PricewaterhouseCoopers LLP.

24.1+          Power of Attorney. (See page 66)

27.1+          Financial Data Schedule.
</TABLE>
- ----------
**   Denotes Management compensatory plan or arrangement.

+    Previously filed.

(1)  Incorporated by reference from the Registrant's Registration Statement on
     Form S-4 (No. 333-70603) filed with the Commission on January 14, 1999.

(2)  Incorporated by reference from the Registrant's Registration Statement on
     Form S-1 (No. 333-98356) filed with the Commission on October 19, 1995.

(3)  Incorporated by reference from the Registrant's Registration Statement on
     Form S-8 (No. 333-74343) filed with the Commission on March 12, 1999.

(4)  Incorporated by reference from the Registrant's current report on Form 8-K
     dated October 30, 1996.

(5)  Incorporated by reference from the Registrant's Quarterly Report on Form
     10-Q for the fiscal quarter ended March 31, 1997.

(6)  Incorporated by reference from the Registrant's Annual Report on Form
     10-K/A-2 for the fiscal year ended December 31, 1996.


                                   SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                        SCANSOFT, INC.

                                        By: /s/ MICHAEL K. TIVNAN
                                           -------------------------------------
                                           Michael K. Tivnan, President
                                           and Chief Executive Officer


                                      -4-

<PAGE>   5

<TABLE>
<CAPTION>
EXHIBIT NO.                         DESCRIPTION OF EXHIBITS
- -----------                         -----------------------
<S>            <C>
2.1(1)         Agreement and Plan of Merger dated December 2, 1998, between
               Visioneer, Inc., a Delaware corporation, and ScanSoft, Inc., a
               Delaware corporation.

3.1(2)         Bylaws of Registrant.

3.2(3)         Amended and Restated Certificate of Incorporation of Registrant.

4.1(3)         Specimen Common Stock Certificate.

4.2(4)         Preferred Shares Rights Agreement, dated as of October 23, 1996,
               between the Registrant and U.S. Stock Transfer Corporation,
               including the Certificate of Designation of Rights, Preferences
               and Privileges of Series A Participating Preferred Stock, the
               form of Rights Certificate and Summary of Rights attached thereto
               as Exhibits A, B and C, respectively.

4.3+           Voting Agreement dated March 2, 1999 between Xerox, Xerox Imaging
               Systems, Inc., Visioneer, Inc. and several holders of Visioneer
               common stock.

10.1(2)        Form of Indemnification Agreement.

10.2(2)**      1993 Incentive Stock Option Plan and form of Option Agreement.

10.3(2)**      1995 Employee Stock Purchase Plan and form of Subscription Agreement.

10.4(2)**      1995 Directors' Option Plan and form of Option Agreement.

10.5(5)**      1997 Employee Stock Option Plan.

10.6(5)**      Director 1997 Compensation Plan.

10.7(2)        LZW Paper Input System Patent License Agreement dated October 20,
               1995 between the Registrant and Unisys Corporation.

10.8(2)        Patent License agreement dated November 13, 1995 between the
               Registrant and Wang Laboratories, Inc.

10.9(2)        Building Lease dated May 21, 1996 between the Registrant and John
               Arrillaga, Trustee, or his Successor Trustee, UTA dated 7/20/77
               (Arrillaga Family Trust) as amended, and Richard T. Peery,
               Trustee, or his Successor Trustee, UTA dated 7/20/77 (Richard T.
               Peery, Separate Property Trust) as amended.

10.10(2)       Software License Agreement dated August 14, 1996 between the
               Registrant and Hewlett-Packard Company.
</TABLE>


                                      -5-

<PAGE>   6

<TABLE>
<CAPTION>
EXHIBIT NO.                         DESCRIPTION OF EXHIBITS
- -----------                         -----------------------
<S>            <C>
10.11(6)       Form of Employment Agreement between the Registrant and each
               individual who was an executive officer prior to the merger with
               ScanSoft and the sale of the hardware business.

10.12          Software Distribution Agreement dated April 26, 1995 between
               Xerox Imaging Systems, Inc. and Tech Data Corporation.

10.13+         Assignment, Assumption, Renewal and Modification Agreement dated
               June 18, 1997 between Xerox Imaging Systems, Inc., ScanSoft, Inc.
               and Tech Data Product Management, Inc.

10.14          Distribution Agreement dated September 22, 1993 between Ingram
               Micro, Inc. and Xerox Imaging Systems, Inc., as amended.

10.15          Gold Disk Bundling Agreement: Pagis SE & Pagis Pro, dated June
               29, 1998 between Xerox Corporation, through its Channels Group
               and ScanSoft, Inc., as amended.

10.16          Gold Disk Bundling Agreement dated March 25, 1998 between Xerox
               Corporation, Office Document Products Group and ScanSoft, Inc.

23.1+          Consent of PricewaterhouseCoopers LLP.

24.1+          Power of Attorney. (See page 66)

27.1+          Financial Data Schedule.
</TABLE>
- ----------
**   Denotes Management compensatory plan or arrangement.

+    Previously filed.

(1)  Incorporated by reference from the Registrant's Registration Statement on
     Form S-4 (No. 333-70603) filed with the Commission on January 14, 1999.

(2)  Incorporated by reference from the Registrant's Registration Statement on
     Form S-1 (No. 333-98356) filed with the Commission on October 19, 1995.

(3)  Incorporated by reference from the Registrant's Registration Statement on
     Form S-8 (No. 333-74343) filed with the Commission on March 12, 1999.

(4)  Incorporated by reference from the Registrant's current report on Form 8-K
     dated October 30, 1996.

(5)  Incorporated by reference from the Registrant's Quarterly Report on Form
     10-Q for the fiscal quarter ended March 31, 1997.

(6)  Incorporated by reference from the Registrant's Annual Report on Form
     10-K/A-2 for the fiscal year ended December 31, 1996.


                                      -6-

<PAGE>   1
                                                                   EXHIBIT 10.12

                         SOFTWARE DISTRIBUTION AGREEMENT

                                     BETWEEN

                              TECH DATA CORPORATION

                                       AND

                           XEROX IMAGING SYSTEMS, INC.



                  TECH DATA:  PKC                  XEROX IMAGING:  WSC

<PAGE>   2

                         SOFTWARE DISTRIBUTION AGREEMENT

        THIS SOFTWARE DISTRIBUTION AGREEMENT, (Agreement) dated this 26th day of
April, 1995 (the "Effective Date"), between TECH DATA CORPORATION, a Florida
corporation ("Tech Data"), with its principle place of business at 5350 Tech
Data Drive, Clearwater, FL 34668 and XEROX IMAGING SYSTEMS INC., a Delaware
corporation ("XEROX IMAGING") with its principle place of business at 9
Centennial Drive, Peabody, MA 01960.

                                   WITNESSETH:

        WHEREAS, Tech Data desires to purchase certain Products from XEROX
IMAGING from time to time; and

        WHEREAS, XEROX IMAGING desires to sell certain Products to Tech Data in
accordance with the terms and conditions set forth in this Agreement; and

        WHEREAS, XEROX IMAGING desires to appoint Tech Data as its non-exclusive
distributor to market Products within the territory defined below;

        NOW, THEREFORE, in consideration of the mutual premises herein contained
and other good and valuable consideration, Tech Data and XEROX IMAGING hereby
agree as follows:


                          ARTICLE I. TERM OF AGREEMENT

 1.1    Term of Agreement. During the term of this Agreement, XEROX IMAGING will
        provide to Tech Data the Products set forth in Purchase Orders (as
        defined herein) in accordance with the terms and conditions set forth in
        this Agreement. The term of this Agreement shall commence on the
        Effective Date and, unless terminated by either party as set forth in
        this Agreement, shall remain in full force and effect for a term of one
        (1) year, and may be renewed for successive one (1) year terms upon
        written confirmation of both parties.

 1.2    Definitions. The following definitions shall apply to this Agreement.

               (a) "Applicable Specification" shall mean the functional
               performance, operational and compatibility characteristics of a
               Product agreed upon in writing by the parties or, in the absence
               of an agreement, as described in applicable Documentation.

               (b) "Documentation" shall mean user manuals, training materials,
               product descriptions and specifications, technical manuals,
               license agreements, supporting materials and other printed
               information relating to the Products, whether distributed in
               print, electronic, or video format, in effect as of the date of
               the applicable Purchase Order and incorporated therein by
               reference.

               (c) "Products" shall mean, individually or collectively the
               sealed software packages comprised of the computer programs
               encoded on software diskettes in form generally released by XEROX
               IMAGING, listed in and more fully described in Exhibit A attached
               and other computers or materials that may be developed and/or
               licensed and sold by XEROX IMAGING for use in connection with
               computer programs.

                  TECH DATA:  PKC                  XEROX IMAGING:  WSC

<PAGE>   3

               (d) "Update" shall mean revised versions of the Product which
               include any alterations, changes, enhancements, error
               corrections, modifications or other revisions to the Product
               which alter or improve the Products or revisions thereof,
               provided that the term "Update" shall be deemed to include only
               new version of the Products which are marketed with a change to
               the number or letter to the right of the decimal in the version
               number (for example Version 2.1, 2.2A or 2.25)

               (e) "New Release" shall mean Products marketed with a change to
               the number or letter to the left of the decimal in the version
               number (for example 3.0 or 4.0) or Products which have terms
               appended to their name such as "II" "Plus" or the like.

               (f) "Territory shall mean the United States of America and its
               territories and possessions, Canada and Latin America.

               (g) "Customers" of Tech Data shall include dealers, resellers,
               commercial customers, value added resellers and other similar
               customers, but shall not include End Users unless specifically
               set forth.

               (h) "End Users" shall mean final retail purchasers or licensees
               who have acquired Products for their own use and not for resale,
               remarketing or redistribution, unless specifically set forth in a
               separate agreement.

               (i) "Services" means any warranty, maintenance, advertising,
               marketing or technical support and any other services performed
               or to be performed by XEROX IMAGING.

 1.3    License. XEROX IMAGING hereby grants to Tech Data and Tech Data accepts
        a non-exclusive right and license to distribute XEROX IMAGING software
        products and third party software products licensed to XEROX IMAGING for
        re-distribution within the territory as herein defined, together with
        any Updates and enhancements thereto (collectively referred to as
        "Software"). This license includes the right to (i) order, use, posses
        and distribute quantities of Software, (ii) grant a sublicense to
        resellers to license Software directly to End Users; and (iii)
        sublicense Software to resellers solely for the resellers use on a
        demonstration unit. XEROX IMAGING reserves the right to appoint other
        authorized distributors and grant other licenses. Tech Data will use its
        best efforts to promote sales of the Products.

                           ARTICLE II. PURCHASE ORDERS

 2.1    Product Availability. From time to time or at Tech Data's request, XEROX
        IMAGING shall inform Tech Data of Products available from XEROX IMAGING
        including, but not limited to, replacement Products, New Releases,
        enhancements or versions of existing Products. XEROX IMAGING shall
        notify Tech Data at least thirty (30) days prior to the date any new
        Product is to be introduced and shall make such Product available to
        Tech Data for distribution no later than the date it is first introduced
        in the market place.

        If for any reason XEROX IMAGING Imagining's production is not on
        schedule, XEROX IMAGING agrees to allocate Product to Tech Data's orders
        based upon a percentage equal to the same percentage as XEROX IMAGING
        Imagining's like customers purchasing like volume of same Products.

 2.2    Purchase Orders. Tech Data may purchase and XEROX IMAGING shall sell to
        Tech Data as follows:


                  TECH DATA:  PKC                  XEROX IMAGING:  WSC

<PAGE>   4

               (a) Purchase Orders for Product shall be placed by Tech Data
               either in writing, by fax or electronically transferred or if
               placed orally, shall be confirmed in writing within ten (10)
               business days.

               (b) Each Purchase Order may include other terms and conditions
               which are consistent with the terms and conditions of this
               Agreement or which are necessary to place a Purchase Order, such
               as billing and shipping information, required delivery dates,
               delivery locations, and the purchase price or charges for
               Products, including any discounts or adjustments for special
               marketing programs.

               (c) A Purchase Order shall be deemed accepted by XEROX IMAGING
               unless XEROX IMAGING notifies Tech Data in writing within five
               (5) business days after receiving the Purchase Order that XEROX
               IMAGING does not accept the Purchase Order.

               (d) XEROX IMAGING shall accept Purchase Orders on C.O.D. basis
               from Tech Data for additional Products which Tech Data is
               contractually obligated to furnish to its customers and does not
               have in its inventory upon the termination of this Agreement;
               provided Tech Data notifies XEROX IMAGING of any and all such
               transactions in writing within sixty (60) days of the termination
               date.

               (e) This agreement shall not obligate Tech Data to purchase any
               Products or services except as specifically set forth in a
               written Purchase Order.

 2.3    Purchase Order Alterations or Cancellations. Prior to shipment of
        Products, XEROX IMAGING shall accept an alteration or cancellation of a
        Purchase Order in order to: (i) change a location for delivery, (ii)
        modify the quantity or type of Products to be delivered or (iii) correct
        typographical or clerical errors.

 2.4    Evaluation or Demonstration Purchase Orders. Tech Data may issue
        Purchase Orders in order to evaluate a reasonable quantity of Products
        or for use as demonstration Products at no charge. After evaluation or
        when such Products are no longer needed for demonstration, Tech Data
        shall have the option to purchase the Products or to return such
        Products to XEROX IMAGING at Tech Data's expense.


                            ARTICLE III. DELIVERY AND
                             ACCEPTANCE OF PRODUCTS

 3.1    Subsidiaries. XEROX IMAGING understands and acknowledges that Tech Data
        may obtain Products in accordance with this Agreement for the benefit of
        subsidiaries of Tech Data. Subsidiaries of Tech Data shall be entitled
        to obtain Products directly from XEROX IMAGING pursuant to this
        Agreement.

 3.2    Acceptance of Products. Tech Data shall, after a reasonable time to
        inspect each shipment, accept each Product on the date (the "Acceptance
        Date") when such Products and all necessary documentation are delivered
        to Tech Data in accordance with the Purchase Order and the Product
        specifications. Any Products not ordered or not otherwise in accordance
        with the Purchase Order, such as mis-shipments or overshipments will be
        returned to XEROX IMAGING at XEROX IMAGING Imagining's expense
        (including without limitation costs of shipment or storage) and shall
        promptly refund to Tech Data all monies paid in respect to such
        Products. Tech Data shall not be required to accept partial shipment
        unless Tech Data agrees prior to shipment.

                  TECH DATA:  PKC                  XEROX IMAGING:  WSC


<PAGE>   5

        Tech Data shall have the ability to return for credit products which
        have boxes that are or become damaged, unless such damage was caused by
        Tech Data or for which Tech Data can be reimbursed by their insurance
        carrier. An offsetting Purchase Order will be placed for all bad box
        returns. In addition, XEROX IMAGING will supply to Tech Data, at no
        charge, any and all missing material(s).

 3.3    Defective Products. In the event any Products are received in a
        defective condition or not in accordance with XEROX IMAGING Imagining's
        applicable Specifications or the Documentation relating to such
        Products, Tech Data may return the Products for full credit. Products
        shall be deemed defective if the Product, or any portion of the Product,
        fails to operate properly on initial "burn in", boot, or use as
        applicable. Tech Data shall have the right to return any such Products
        that are returned to Tech Data from its customers or End Users within
        sixty (60) days of the Products' initial delivery date to the End User.

 3.4    Transportation of Products. FOB Destination. XEROX IMAGING shall deliver
        the Products to Tech Data at the location shown and on the delivery date
        set forth in the applicable Purchase Order or as otherwise agreed upon
        by the parties. Charges for transportation of the Products shall be paid
        by Tech Data . XEROX IMAGING shall use only those common carriers
        preapproved by Tech Data or listed in Tech Data's published routing
        instructions, unless prior written approval of Tech Data is received.

        Title to Products remains with XEROX IMAGING at all times. All risk of
        loss or damage to the Products shall be borne by XEROX IMAGING until
        delivery of such Products to the Tech Data warehouse or the location
        specified in the appropriate Purchase Order.

        XEROX IMAGING shall bear all costs of shipping and risk of loss of
        in-warranty Products to XEROX IMAGING's location and back to Tech Data
        or Tech Data's customer.

 3.5    Resale of Products by Tech Data. During the term of this Agreement, Tech
        Data may market, promote, distribute and resell Products to customers of
        Tech Data, either directly or through its subsidiaries, in accordance
        with the following terms and conditions:

               (a) XEROX IMAGING shall extend to Tech Data and each customer of
               Tech Data the same warranties and indemnifications, with respect
               to Products purchased and resold hereunder as XEROX IMAGING
               extends to its End User customers. The term of warranties and
               indemnities extended by XEROX IMAGING to an End User shall
               commence upon delivery of the Product to the End User.

               (b) XEROX IMAGING shall make available at no charge to Tech Data
               and the customers of Tech Data all technical and sales training,
               technical support, marketing support, advertising material and
               other services related to the Products that are currently offered
               or that may be offered by XEROX IMAGING. XEROX IMAGING also
               agrees to provide Tech Data a telephone support representative at
               no charge during Tech Data's normal business hours.

               (c) Tech Data is hereby authorized to use trademarks and trade
               names of XEROX IMAGING and third parties used in connection with
               the Products, advertising, promoting or distributing the
               Products. Tech Data recognizes XEROX IMAGING or other third
               parties may have rights or ownership of certain trademarks, trade
               names and patents associated with the Products. Tech Data will
               act consistently with such rights, and Tech Data shall comply
               with any reasonable, written guidelines when provided by XEROX
               IMAGING or third parties relating to such trademark or trade name
               usage. Tech Data

                  TECH DATA:  PKC                  XEROX IMAGING:  WSC


<PAGE>   6

               will notify XEROX IMAGING of any infringement of which Tech Data
               has actual knowledge. Tech Data shall discontinue use of XEROX
               IMAGING Imagines' trademarks or trade names upon termination of
               this agreement, except as may be needed to sell or liquidate any
               final inventories of Product.

               (d) Tech Data is free to determine its own resales prices for the
               Products. Although Vendor may publish suggested list prices,
               these are suggestions only and Tech Data shall be free to
               determine the actual resale prices at which Products will be
               distributed to its resellers. No employee or representative of
               XEROX IMAGING or anyone else associated or affiliated with XEROX
               IMAGING has any authority to dictate to Tech Data what its resale
               prices for Products must be or to inhibit in any way Tech Data's
               pricing discretion with respect to such Products.

               (e) XEROX IMAGING shall clearly mark each unit package with the
               serial number, product description and machine readable bar code
               (employing UPC or ABCD industry standard bar code). Failure to do
               so shall result in Tech Data deducting one-half percent (1/2%)
               from invoice to offset the resultant administrative costs to Tech
               Data.

 3.6    Inventory Adjustment. Open ended inventory adjustment will be accepted
        during the initial six (6) months of the Agreement. After the initial
        six (6) month period XEROX IMAGING agrees to accept, on a monthly basis,
        a shipment of Product in sealed cartons returned by Tech Data and to
        credit Tech Data's account in the amount of the net price paid by Tech
        Data therefore (the "Return Credit"), provided that Tech Data places an
        offsetting Purchase Order.

        In addition, Tech Data shall have the right to return for full credit,
        without limitation as to the dollar amount, all Products that become
        obsolete, that XEROX IMAGING discontinues or are removed from XEROX
        IMAGING Imagining's current price list or are upgraded; provided Tech
        Data returns such Products within sixty (60) days after Tech Data
        receives written notice that such Products are obsolete, discontinued or
        are removed from XEROX IMAGING Imagining's price list.

 3.7    Time of Performance. Time is hereby expressly made of the essence with
        respect to each and every term and provision of this agreement.


                             ARTICLE IV. WARRANTIES,
                           INDEMNITIES AND LIABILITIES

 4.1    Warranty. XEROX IMAGING hereby represents and warrants that it has not
        entered into any agreements or commitments which are inconsistent with
        or in conflict with the rights granted to Tech Data herein; the Products
        shall be free and clear of all liens and encumbrances; Tech Data and its
        customers and End Users shall be entitled to use the Products without
        disturbance; XEROX IMAGING warrants that all Software media shall be
        free from defects in material and workmanship for a period of ninety
        (90) days from the date of first use or installation by an End-User.
        XEROX IMAGING sole obligation to the END-User shall be to replace any
        Software media that proves defective during the warranty period. If such
        Product is returned directly to Tech Data by a Customer or End-User,
        Tech Data may then return it to XEROX IMAGING for credit (the actual
        price paid, minus any price protection adjustments). XEROX IMAGING shall
        supply Tech Data, at no additional charge, all services, parts or
        replacement Products necessary for XEROX IMAGING to comply with its
        Product warranties. XEROX IMAGING agrees that Tech Data shall be
        entitled to pass through to customers of Tech Data and End Users of the
        Products all warranties granted by XEROX IMAGING. XEROX IMAGING

                  TECH DATA:  PKC                  XEROX IMAGING:  WSC


<PAGE>   7

        represents that the Product warranties shall also include those set
        forth in literature, applicable specifications, documentation,
        advertising and printed material distributed by XEROX IMAGING. XEROX
        IMAGING shall indemnify and hold Tech Data, its subsidiaries, customers
        and their respective successors, officers, directors, employees and
        agents harmless from and against all third party actions, claims,
        losses, damages, liabilities, awards, costs and expenses (including a
        reasonable attorney's fee) resulting from or arising out of any breach
        or claimed breach of the foregoing warranties.

        The express warranties set forth above specifically exclude and do not
        apply to defects caused: (i) through no fault of XEROX IMAGING during
        shipment from Tech Data to Customer; (ii) by the use or operation of the
        Software in an application or environment other than that intended or
        recommended by XEROX IMAGING, (iii) by modifications or alterations made
        to the Software by Distributor or any third party.

        EXCEPT AS EXPRESSLY SET FORTH ABOVE, XEROX IMAGING MAKES NO OTHER
        WARRANTIES TO DISTRIBUTOR AND DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS
        OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR
        FITNESS FOR A PARTICULAR USE.

 4.2    Proprietary Rights Indemnification. XEROX IMAGING hereby represents and
        warrants that XEROX IMAGING has all right, title, ownership interest
        and/or marketing rights necessary to provide the Products to Tech Data,
        and Products and their sale and use hereunder do not infringe upon any
        copyright, patent, trade secret or other proprietary or intellectual
        property right of any third party, and that there are no suits or
        proceeding, pending or threatened alleging any such infringement. XEROX
        IMAGING shall indemnify and hold Tech Data, Tech Data's related and/or
        subsidiary companies, Tech Data's customers and their respective
        successors, officers, directors, employees and agents harmless from and
        against any and all actions, claims, losses, damages, liabilities,
        awards, costs and expenses, including but not limited to XEROX IMAGING
        Imagining's manufacture, sale, offering for sale, distribution,
        promotion or advertising of the Products supplied under this Agreement
        (including attorney's fees) which they or any of them incur or become
        obligated to pay resulting from or arising out of any breach or claimed
        breach of the foregoing warranty, or by reason of any acts that may be
        committed suffered or permitted by XEROX IMAGING. XEROX IMAGING shall
        defend and settle, at its expense, all suits or proceedings arising
        therefrom. Tech Data shall inform XEROX IMAGING of any such suit or
        proceeding against Tech Data and shall have the right to participate in
        the defense of any such suit or proceeding at Tech Data's expense and
        through counsel of Tech Data's choosing. In the event an injunction is
        sought or obtained against the use of a Product , XEROX IMAGING shall
        within ninety (90) days of receipt of notice, at its option and expense,
        either (i) procure for Tech Data, its customers and Product End Users
        the right to continue to use the infringing Product as set forth in this
        Agreement, or (ii) replace, to the extent Products are available, or
        modify the infringing Product to make its use non-infringing while being
        capable of performing the same function without degradation of
        performance. XEROX IMAGING shall have no liability under this Section
        for any infringement based on the use of any equipment or software with
        any other equipment or software reasonably intended to be used with the
        Product, if the equipment or software is used in a manner for which it
        was not designed, or if the equipment or software is used in an
        infringing process. XEROX IMAGING Imagines obligations hereunder shall
        survive termination of this Agreement.

 4.3    Cross Indemnification. In the event any act or omission of either party
        or its employees, servants, agents or representatives causes or results
        in (i) loss, damage to or destruction of property of the other party or
        third parties, and/or (ii) death or injury to persons including, but not
        limited to, employees or invitees of either party, then such party shall
        indemnify, defend and hold

                  TECH DATA:  PKC                  XEROX IMAGING:  WSC


<PAGE>   8

        the other party harmless from and against any and all claims, actions,
        damages, demands, liabilities, costs and expenses, including reasonable
        attorneys' fees and expenses, resulting therefrom. The indemnifying
        party shall pay or reimburse the other party promptly for all such loss,
        damage, destruction, death or injury.

 4.4    Insurance.

        (a) The parties shall be responsible for providing Workman's
        Compensation insurance in the statutory amounts required by the
        applicable state laws.

        (b) Without in any way limiting XEROX IMAGING Imagining's
        indemnification obligation as set forth in this Agreement, XEROX IMAGING
        shall maintain Commercial General Liability and/or Comprehensive General
        Liability Insurance in such amounts as is reasonably satisfactory to
        Tech Data. Either policy form should contain the following coverage's:
        Personal and Advertising Injury, Broad Form Property Damage, Products
        and Completed Operations, Contractual Liability, employees as Insured
        and Fire Legal Liability.

        (c) XEROX IMAGING will provide evidence of the existence of insurance
        coverage's referred to in this Section by certificates of insurance
        which should also provide for at least thirty (30) days notice of
        cancellation, non-renewal or material change of coverage to Tech Data.

 4.5    Limitation of Liability. NEITHER PARTY SHALL BE LIABLE TO THE OTHER
        PURSUANT TO THIS AGREEMENT FOR AMOUNTS REPRESENTING LOSS OF PROFITS,
        LOSS OF BUSINESS OR INDIRECT, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF THE
        OTHER PARTY.

 4.6    Unauthorized Representations. Tech Data shall have no authority to alter
        or extend any of the warranties of XEROX IMAGING expressly contained or
        referred to in this Agreement without prior approval of XEROX IMAGING.

 4.7    XEROX IMAGING agrees to provide Tech Data, upon signing this Agreement
        and at any time thereafter that XEROX IMAGING modifies or adds products
        distributed by Tech Data, with the Export Control Classification Number
        (ECCN) for each of XEROX IMAGING Imagining's Products, and information
        as to whether or not any of such Products are classified under the U.S.
        Munitions List.

 4.8    Disclaimer of Warranties. XEROX IMAGING has made expressed warranties in
        this Agreement and in documentation, promotional and advertising
        materials. EXCEPT AS SET FORTH HEREIN OR THEREIN, XEROX IMAGING
        DISCLAIMS ALL WARRANTIES WITH REGARD TO THE PRODUCTS.

                       ARTICLE V. PAYMENT TO XEROX IMAGING

 5.1    Charges, Prices and Fees for Products. Charges, prices, quantities and
        discounts, if any, for Products shall be determined as set forth in
        Exhibit A, or as otherwise agreed upon by the parties, and may be
        confirmed at the time or order. In no event shall charges exceed XEROX
        IMAGING Imagining's then current established Charges. XEROX IMAGING
        shall have the right to increase prices from time to time, upon written
        notice to Tech Data not less than sixty (60) days prior to the effective
        date of such increase. All orders placed prior to the effective date of
        the increase, for shipment within sixty (60) days after the effective
        date, shall be at the old price. Tech Data shall not be bound by any of
        XEROX IMAGING Imagining's suggested prices.

                  TECH DATA:  PKC                  XEROX IMAGING:  WSC


<PAGE>   9

 5.2    Most Favored Pricing and Terms. XEROX IMAGING represents that the prices
        charged and the terms offered to Tech Data are and will be at least as
        low as those charged or offered by XEROX IMAGING to any of its other
        like distributors. If XEROX IMAGING offers price discounts, promotional
        discounts or other special prices to its other like distributors, Tech
        Data shall also be entitled to participate and receive notice of the
        same no later than other like distributors.

 5.3    Payment. Except as otherwise set forth herein, any undisputed sum due to
        XEROX IMAGING pursuant to this Agreement shall be payable as follows: 2%
        prepay, 1%-15 net forty-five (45) days after the invoice receipt. XEROX
        IMAGING shall invoice Tech Data no earlier than the applicable shipping
        date for the Products covered by such invoice. The due date for payment
        shall be extended during any time the parties have a bona fide dispute
        concerning such payment. Notwithstanding anything herein to the
        contrary, for the initial order only, payment terms shall be net 90 days
        and Tech Data may return any of the initial order for credit.

 5.4    Taxes. Tech Data shall be responsible for franchise taxes, sales or use
        taxes or shall provide XEROX IMAGING with an appropriate exemption
        certificate. XEROX IMAGING shall be responsible for all other taxes,
        assessments, permits and fees, however designated which are levied upon
        this Agreement or the Products, except for taxes based upon Tech Data's
        income. No taxes of any type shall be added to invoices without the
        prior written approval of Tech Data.

 5.5    Price Protection. XEROX IMAGING shall grant to Tech Data a retroactive
        price credit for the full amount of any XEROX IMAGING price decrease on
        all Products on order, in transit and in its inventory on the effective
        date of such price decrease. Tech Data shall, within thirty (30) days
        after receiving written notice of the effective date of the price
        decrease, provide a list of all Products for which it claims a credit.
        XEROX IMAGING shall have the right to a reasonable audit at XEROX
        IMAGING Imagining's expense. All orders scheduled for shipment or in
        transit to Tech Data at the time of notice of the price decrease shall
        be adjusted to the decreased price.

 5.6    Invoices. A "correct" invoice shall contain (i) XEROX IMAGING
        Imagining's name and invoice date, (ii) the Purchase Order or other
        authorizing document, (iii) separate descriptions, unit prices and
        quantities of the Products actually delivered, (iv) credits (if
        applicable), (v) shipping charges (vi) name (where applicable), title,
        phone number and complete mailing address of responsible official to
        whom payment is to be sent, and (vii) other substantiating documentation
        or information as may reasonably be required by Tech Data from time to
        time

 5.7    Advertising Credit. XEROX IMAGING shall offer a three percent (3%) co-op
        program and advertising credits and other promotional programs or
        incentives to Tech Data as it offers its other distributors or
        customers. Tech Data shall have the right at Tech Data's option, to
        participate in such programs. XEROX IMAGING shall attach a copy of its
        co-op program hereto. Tech Data shall provide XEROX IMAGING invoices for
        the costs actually incurred by Tech Data for advertising and other
        activities. Invoices provided hereunder shall be paid by XEROX IMAGING
        within thirty (30) days after receipt or, at Tech Data's option, Tech
        Data may deduct such amounts from any amounts due XEROX IMAGING
        hereunder.

 5.8    Vendor Reports. XEROX IMAGING shall, if requested, render monthly
        reports to Tech Data setting forth the separate Products, dollars
        invoiced for each Product, and total dollars invoiced to Tech Data for
        the month, and such other information as Tech Data may reasonably
        request.

 5.9    Tech Data Reports. Tech Data shall, if requested, render monthly sales
        out reports on diskette, in ASCII Comma Delimited Format. Information
        provided will include: month and year sales activity occurred, internal
        product number (assigned by Tech Data), written description, country,

                  TECH DATA:  PKC                  XEROX IMAGING:  WSC


<PAGE>   10

        State and zip code of resellers location, unit cost (distributors cost
        at quantity 1), quantity and extended cost (cost times quantity). A
        monthly inventory report, will be provided on a paper format once a
        month. The reports will be delivered to the XEROX IMAGING at different
        times in the month.

5.10    XEROX IMAGING agrees that for the term of this Agreement, XEROX IMAGING
        shall provide upon Tech Data's request an annual report


                             ARTICLE VI. TERMINATION

6.1     Termination. Either party may terminate this agreement, with or without
        cause, upon giving the other party sixty (60) days prior written notice.
        In the event that either party materially or repeatedly defaults in the
        performance of any of its duties or obligations set forth in this
        Agreement, and such default is not substantially cured within thirty
        (30) days after written notice is given to the defaulting party
        specifying the default, then the party not in default may, by giving
        written notice thereof to the defaulting party, terminate this Agreement
        or the applicable Purchase Order relating to such default as of the date
        specified in such notice of termination.

6.2     Termination for Insolvency or Bankruptcy. Either party may immediately
        terminate this Agreement and any Purchase Order by giving written notice
        to the other party in the event of (i) the liquidation or insolvency of
        the other party, (ii) the appointment of a receiver or similar officer
        for the other party, (iii) an assignment by the other party for the
        benefit of all or substantially all of its creditors, (iv) entry by the
        other party into an agreement for the composition, extension, or
        readjustment of all or substantially all of its obligations, or (v) the
        filing of a meritorious petition in bankruptcy by or against the other
        party under any bankruptcy or debtors' law for its relief or
        reorganization

 6.3    Rights Upon Termination. Termination of any Purchase Order or this
        Agreement shall not affect XEROX IMAGING Imagining's right to be paid
        for undisputed invoices for Products already shipped. The termination of
        this Agreement shall not affect any of XEROX IMAGING Imagining's
        warranties, indemnifications or obligations relating to returns, credits
        or any other matters set forth in this agreement that are to survive
        termination in order to carry out their intended purpose, all of which
        shall survive this Agreement. Upon termination of this Agreement, Tech
        Data shall discontinue holding itself out as a distributor of XEROX
        IMAGING Imagining's Products. The expiration of the term of this
        Agreement shall not affect the obligations of either party to the other
        party pursuant to any Purchase Order previously forwarded to XEROX
        IMAGING.

6.4     Repurchase of Products Upon Termination. Upon the effective date of
        termination of this Agreement for any reason, XEROX IMAGING agrees to
        repurchase the Products in Tech Data's inventory which have been
        purchased within the previous 150 days. XEROX IMAGING will repurchase
        the Products at the original net purchase price; provided that the
        Products have been unopened and are in their original factory sealed
        packages. Tech Data shall submit to XEROX IMAGING, within sixty (60)
        days after termination, the quantity of Product that Tech Data wishes
        XEROX IMAGING to repurchase. In such event XEROX IMAGING shall issue a
        Return Material Authorization to Tech Data for all such Products;
        provided, however, that XEROX IMAGING shall accept returned Products in
        accordance with this Section absent a Return Material Authorization if
        XEROX IMAGING fails to issue said Return Material Authorization within
        two (2) business days of Tech Data's request. XEROX IMAGING shall credit
        any outstanding balances owed to Tech Data and remit in the form of a
        check to Tech Data the remaining dollar amount of the Product returned
        within thirty (30) days of receipt of the Product.

                  TECH DATA:  PKC                  XEROX IMAGING:  WSC


<PAGE>   11

                           ARTICLE VII. MISCELLANEOUS

 7.1    Binding Nature, Assignment, and Subcontracting. This Agreement shall be
        binding on the parties and their respective successors and assigns, but
        neither party shall have the power to assign this Agreement without the
        prior written consent of the other party.

 7.2    Counterparts. This Agreement may be executed in several counterparts,
        all of which taken together shall constitute one single agreement
        between the parties.

 7.3    Headings. The Article and Section headings used in this Agreement are
        for reference and convenience only and shall not enter into the
        interpretation hereof.

 7.4    Relationship of Parties. Tech Data is performing pursuant to this
        Agreement only as an independent contractor. Nothing set forth in this
        Agreement shall be construed to create the relationship of principal and
        agent between Tech Data and XEROX IMAGING. Neither party shall act or
        represent itself, directly or by implication, as an agent of the other
        party.

 7.5    Confidentiality. Each party acknowledges that in the course of
        performance of its obligations pursuant to this Agreement, it may obtain
        certain confidential and/or proprietary information. Each party hereby
        agrees that all such information communicated to it by the other party,
        and identified as confidential, whether before or after the effective
        date, shall be and was received in strict confidence, shall be used only
        for purposes of this Agreement, and shall not be disclosed without the
        prior written consent of the other party, except as may be necessary by
        reason of legal, accounting or regulatory requirements beyond either
        party's reasonable control. The provisions of this Section shall survive
        the term or termination of this Agreement for any reason.

 7.6    Arbitration. Any disputes arising under this Agreement shall be
        submitted to arbitration in accordance with such rules as the parties
        jointly agree. If the parties are unable to agree on arbitration
        procedures, arbitration shall be conducted where the respondent party is
        headquartered, in accordance with the rules of the American Arbitration
        Association. Any such award shall be final and binding upon both
        parties.

7.7     Notices. Wherever one party is required or permitted to give notice to
        the other pursuant to this Agreement, such notice shall be deemed given
        when delivered in hand, by telex or cable, or when mailed by registered
        or certified mail, return receipt requested, postage prepaid, and
        addressed as follows:

        In the case of XEROX IMAGING:               In the Case of Tech Data:
        -----------------------------               ----------------------------
        Xerox Corporation                           Tech Data Corporation
        9 Centennial Drive                          5350 Tech Data Drive
        Peabody, MA 01960                           Clearwater, FL 34620
        Attn: Tom D'Errico                          Attn: Tamra Muir
        Contracts Administrator                     Director of Operations
                                                    cc: Debi A. Schwatka
                                                    Lead Contracts Administrator

        Either party may from time to time change its address for notification
        purposes by giving the other party written notice of the new address and
        the date upon which it will become effective.

 7.8    Force Majeure. The term "Force Majeure" shall be defined to include
        fires or other casualties or accidents, acts of God, severe weather
        conditions, strikes or labor disputes, war or other violence, or any
        law, order, proclamation, regulation, ordinance, demand or requirement
        of any governmental agency.

                  TECH DATA:  PKC                  XEROX IMAGING:  WSC

<PAGE>   12

               (a) A party whose performance is prevented, restricted or
               interfered with by reason of a Force Majeure condition shall be
               excused from such performance to the extent of such Force Majeure
               condition so long as such party provides the other party with
               prompt written notice describing the Force Majeure condition and
               takes causes of nonperformance and immediately continues
               performance whenever and to the extent such causes are removed.

               (b) If, due to a Force Majeure condition, the scheduled time of
               delivery or performance is or will be delayed for more than
               thirty (30) days after the scheduled date, the party not relying
               upon the Force Majeure condition may terminate, without liability
               to the other party, any Purchase Order or portion thereof
               covering the delayed Products.

 7.9    Return Material Authorization Numbers. XEROX IMAGING is required to
        issue a Return Material Authorization Number (RMA) to Tech Data within
        forty-eight (48) hours of Tech Data's request; however, if the Return
        Material Authorization is not received within two (2) business days,
        XEROX IMAGING shall accept returned Products absent a Return Material
        Authorization Number. The net purchase price, minus any adjustments of
        such Products returned to XEROX IMAGING shall be credited to Tech Data's
        account.

7.10    Credits to Tech Data. In the event any provisions of this Agreement or
        any other agreement between Tech Data and XEROX IMAGING require that
        XEROX IMAGING grant credits to Tech Data's account, and such credits are
        not received within thirty (30) days then, all such credits shall become
        effective immediately upon notice to XEROX IMAGING. In such event, Tech
        Data shall be entitled to deduct any such credits from the next monies
        owed to XEROX IMAGING. In the event credits exceed any balances owed by
        Tech Data to XEROX IMAGING, then, upon Tech Data's request, XEROX
        IMAGING shall issue a check payable to Tech Data within thirty (30) days
        of such notice.

 7.11   Severability. If, but only to the extent that, any provision of this
        Agreement is declared or found to be illegal, unenforceable or void,
        then both parties shall be relieved of all obligations arising under
        such provision, it being the intent and agreement of the parties that
        this Agreement shall be deemed amended by modifying such provision, to
        the extent necessary to make it legal and enforceable while preserving
        its intent.

 7.12   Waiver. A waiver by either of the parties of any covenants, conditions
        or agreements to be performed by the other or any breach thereof shall
        not be construed to be a waiver of any succeeding breach thereof or of
        any other covenant, condition or agreement herein contained.

 7.13   Remedies. All remedies set forth in this Agreement shall be cumulative
        and in addition to and not in lieu of any other remedies available to
        either party at law, in equity or otherwise, and may be enforced
        concurrently or from time to time.

 7.14   Survival of Terms. Termination or expiration of this Agreement for any
        reason shall not release either party from any liabilities or
        obligations set forth in this Agreement which (i) the parties have
        expressly agreed shall survive any such termination or expiration, or
        (ii) remain to be performed or by their nature would be intended to be
        applicable following any such termination or expiration.

 7.15   Nonexclusive Market and Purchase Rights. It is expressly understood and
        agreed that this Agreement does not grant to XEROX IMAGING or Tech Data
        an exclusive right to purchase or sell Products and shall not prevent
        either party from developing or acquiring other vendors or customers or
        competing Products.

                  TECH DATA:  PKC                  XEROX IMAGING:  WSC

<PAGE>   13

 7.16   Specifications and Drawing. XEROX IMAGING agrees to provide upon Tech
        Data's request, at no charge to Tech Data, reasonable quantities as
        requested by Tech Data of the following: (1) the specifications, (2)
        published user instructions, manuals and other training materials, and
        (3) current manuals covering installation, operation and complete
        maintenance of the Products. Tech Data shall have the right to copy or
        reproduce the foregoing materials for use in connection with Tech Data's
        use or sale of the Products.

 7.17   Entire Agreement. This Agreement, including any Exhibits and documents
        referred to in this Agreement or attached hereto, constitutes the entire
        and exclusive statement of Agreement between the parties with respect to
        its subject matter and there are no oral or written representations,
        understandings or agreements relating to this Agreement which are not
        fully expressed herein.

 7.18   Governing Law. This Agreement shall have Florida as its situs and shall
        be governed by and construed in accordance with the laws of the State of
        Florida.

 7.19   International Business. XEROX IMAGING acknowledges that Tech Data may
        desire to obtain Products or Systems for use in countries outside the
        United States and its territories. The parties acknowledge that in such
        case it may be necessary to enter into additional agreements between
        XEROX IMAGING and Tech Data and/or the respective subsidiaries, agents,
        distributors or subsidiaries authorized to conduct business in such
        countries or to negotiate further terms and conditions to provide for
        such right. The parties intend that any further agreements or terms and
        conditions will be consistent with and based upon the applicable terms
        and conditions of this Agreement, subject, however, to requirements of
        local law and local business practice. All Products obtained pursuant to
        this Section shall be deemed for purposes of calculating accumulated
        purchases and any discounts set forth in this Agreement, to have been
        obtained pursuant to this Agreement.


        IN WITNESS WHEREOF, the parties have each caused this Agreement to be
signed and delivered by its duly authorized officer or representative as of the
Effective Date.



XEROX IMAGING SYSTEMS, INC.                   TECH DATA CORPORATION

By:  /s/ Wayne Crandall                       By:  /s/ Peggy K. Caldwell
    -------------------------                     ----------------------

Printed Name:  Wayne Crandall                 Printed Name: Peggy K. Caldwell

Title:  Vice President, Sales                 Title:  Senior Vice President
                                                        Product Marketing

Date:   April 26, 1995                        Date:   May 11, 1995


                  TECH DATA:  PKC                  XEROX IMAGING:  WSC

<PAGE>   14

                                CO-OP GUIDELINES
                          XEROX IMAGING SOFTWARE, INC.

To increase the effectiveness of advertising and sales promotions Tech Data has
developed the following advertising requirements:


HOW CO-OP IS EARNED:
- - Co-op dollars will be at least 3% of the purchases made by Tech Data, net of
  returns.
- - Co-op dollars will be accrued on a monthly basis.


HOW CO-OP IS SPENT:
- - Tech Data will be reimbursed for 100% of the cost for ads or promotions that
  feature vendor products.
- - Co-op dollars will be used within the 12 months immediately following the
  month in which they are earned.


HOW CO-OP IS CLAIMED:
- - Claims for co-op will be submitted to vendor within 60 days of the event date.
- - Claims for co-op will be submitted with a copy of vendor prior approval and
  proof of performance.
- - Payment must be remitted within 30 days of the claim date, or Tech Data
  reserves the right to deduct from the next invoice.


CO-OP REPORTING:
- - Vendor will submit a monthly co-op statement outlining (i) co-op earned, (ii)
  co-op used and (iii) co-op claims paid.



Accepted:

/s/ Wayne Crandall
- -----------------------------


Name:   Wayne Crandall

Title:  Vice President, Sales

Date:   April 26, 1995


<PAGE>   15







                                    EXHIBIT A

                               PRODUCT PRICE LIST
<TABLE>
<CAPTION>

UNITED STATES AND CANADA ONLY - ENGLISH
- --------------------------------------------------------------------------------------------------
<S>                       <C>              <C>       <C>       <C>           <C>          <C>
         Product           Part Number      List      Discount  Order Price   Deduct from    Net
                                            price                               invoice    payment
- --------------------------------------------------------------------------------------------------
TextBridge for Windows      31-08205-00      $99         42%     $57.42           5%       $54.55
- --------------------------------------------------------------------------------------------------
TextBridge for Mac and      31-08094-00      $99         42%     $57.42           5%       $54.55
PowerMac
- --------------------------------------------------------------------------------------------------
TextBridge Professional     31-08135-00      $349        40%     $209.40          5%       $198.93
Edition for Windows
- --------------------------------------------------------------------------------------------------
TextBridge Professional     31-08204-00      $199        20%     $159.20          5%       $151.24
Ed. Competitive Upgrade
- --------------------------------------------------------------------------------------------------


CANADA - FRENCH SOFTWARE AND DOCUMENTATION ARE LOCALISED
- --------------------------------------------------------------------------------------------------
         Product           Part Number      List      Discount  Order Price   Deduct from    Net
                                            price                               invoice    payment
- --------------------------------------------------------------------------------------------------
TextBridge for Windows*     31-08205-01      $149        50%     $74.50            0%       $74.50
- --------------------------------------------------------------------------------------------------
TextBridge for Mac and      31-08094-01      $149        50%     $74.50            0%       $74.50
PowerMac *
- --------------------------------------------------------------------------------------------------
TextBridge Professional     31-08135-01      $549        50%     $274.50           0%       $274.50
Edition for Windows*
- --------------------------------------------------------------------------------------------------
TextBridge Professional     31-08204-01      $313        20%     $250.40           0%       $250.40
Ed. Competitive Upgrade
- --------------------------------------------------------------------------------------------------


LATIN AMERICA - ENGLISH
- --------------------------------------------------------------------------------------------------
         Product           Part Number      List      Discount  Order Price   Deduct from    Net
                                            price                               invoice    payment
- --------------------------------------------------------------------------------------------------
TextBridge for Windows*     31-08205-05      $149        50%     $74.50            0%       $74.50
- --------------------------------------------------------------------------------------------------
TextBridge for Mac and      31-08094-05      $149        50%     $74.50            0%       $74.50
PowerMac*
- --------------------------------------------------------------------------------------------------
TextBridge Professional     31-08135-05      $549        50%     $274.50           0%       $274.50
Edition for Windows*
- --------------------------------------------------------------------------------------------------
TextBridge Professional     31-08204-05      $313        20%     $250.40           0%       $250.40
Ed. Competitive Upgrade
- --------------------------------------------------------------------------------------------------


LATIN AMERICA - SPANISH SOFTWARE AND DOCUMENTATION ARE LOCALISED
- --------------------------------------------------------------------------------------------------
         Product           Part Number      List      Discount  Order Price   Deduct from    Net
                                            price                               invoice    payment
- --------------------------------------------------------------------------------------------------
TextBridge for Windows*    31-08205-04       $149        50%     $74.50            0%       $74.50
- --------------------------------------------------------------------------------------------------
TextBridge for Mac and     31-08094-04       $149        50%     $74.50            0%       $74.50
PowerMac *
- --------------------------------------------------------------------------------------------------
TextBridge Professional    31-08135-04       $549        50%     $274.50           0%       $274.50
Edition for Windows*
- --------------------------------------------------------------------------------------------------
TextBridge Professional    31-08204-04       $313        20%     $250.40           0%       $250.40
Ed.
Competitive Upgrade
- --------------------------------------------------------------------------------------------------
</TABLE>


NOTES:

 *      These packages contain language packages for Spanish, Portuguese,
        French, German, Italian, Dutch, Danish, Swedish, Norwegian, and Finnish.


<PAGE>   1
                                                                   EXHIBIT 10.14

                             DISTRIBUTION AGREEMENT


        THIS AGREEMENT (the "Agreement") is made and entered into as of
        September 22, 1993 by and between INGRAM MICRO INC., a California
        corporation (hereinafter "Ingram") and XEROX IMAGING SYSTEMS, INC., a
        Delaware corporation (hereinafter "Vendor").


                                    RECITALS

        Vendor manufactures, produces, and/or supplies microcomputer products
        and desires to grant to Ingram the right to sell and distribute certain
        of those products, as hereinafter defined, upon the terms and conditions
        set forth below. Ingram is engaged in the sale and distribution of
        microcomputer products and desires to have the right to sell and
        distribute Vendor's products upon said terms and conditions.

        In consideration of the mutual covenants and agreements set forth below,
        the hereto below agree as follows:


                        1. GRANT OF DISTRIBUTION RIGHTS.

        1.1 Vendor hereby appoints Ingram as a non-exclusive, authorized
        distributor of the Vendor software products listed in Exhibit A ("the
        Software") to Ingram's customers within the United States and Canada.
        Vendor grants to Ingram, and Ingram accepts, the right to use for
        demonstration and its own purposes, upon payment of any applicable
        license fees, the Software under the terms and conditions of the license
        agreement contained in the packaging thereof. Further, Vendor grants to
        Ingram the right to distribute as agent on behalf of Vendor the Software
        to Ingram's customers within the United States and Canada provided that
        Ingram shall market the Software in the unopened shrink-wrapped package
        as delivered to Ingram, containing the Vendor Software License Agreement
        included therein.

        1.2 Vendor agrees to make available and to sell to Ingram such Software
        as Ingram shall order from Vendor at the prices and subject to the terms
        set forth in this Agreement.

        1.3 Vendor may appoint other distributors to distribute its Software.
        Ingram shall have the right to obtain and/or retain the rights to
        distribute any other products, including products which may compete with
        the Software.

        1.4 The party's sole relationship with each other shall be that of an
        independent contractor. Neither party shall make any warranties or
        representations, or assume or create any obligations, on the other's
        behalf without that other's written approval. Each party shall be solely
        responsible for the actions of all their respective employees, agents
        and representatives.


<PAGE>   2

                                    2. TERM.

        2.1 The term of this Agreement shall be for a period of one (1) year,
        beginning on the date first above written. Thereafter, this Agreement
        shall be renewed for successive one (1) year terms without further
        notice, unless terminated sooner as provided under the provisions of
        this Agreement.

        2.2 Either party may terminate this Agreement, with or without cause, by
        giving ninety (90) days' written notice to the other party.

                            3. OBLIGATIONS OF VENDOR.

        3.1 Vendor shall use its best efforts to fill orders promptly. However,
        Vendor shall not be liable for any loss occasioned by a delay in
        delivery. Upon twenty-four (24) hour notification to Ingram, Vendor may
        make partial shipments of pending orders, each of which shall be
        separately invoiced and which shall be paid according to the payment
        terms set forth herein.

        3.2 At no charge to Ingram, Vendor shall support the Software and any
        efforts to sell the Software by Ingram, and provide sales literature,
        advertising materials and reasonable training and support in the sale
        and use of the Software to Ingram's employees and customers, if
        requested by Ingram.

        3.3 Vendor shall use reasonable efforts to give Ingram at least thirty
        (30) days' notice prior to the release of software which is directly
        associated with the Software listed in Exhibit A and may, in its sole
        discretion, make such Software available for distribution by Ingram.
        Addition of software to Exhibit A shall be mutually agreed upon by the
        parties.

        3.4 Vendor agrees to maintain sufficient Software inventory to permit it
        to fill Ingam's orders as required herein. If a shortage of any Software
        in Vendor's inventory exists in spite of Vendor's good faith efforts,
        Vendor agrees to allocate its available inventory of such Software to
        Ingram in proportion to Ingram's percentage of all of Vendor's customer
        orders for such Software during the previous sixty (60) days.

        3.5 For each Software shipment to Ingram, Vendor shall issue to Ingram
        an invoice showing Ingram's order number and the Software part number,
        description, price and any discount. At least monthly, Vendor shall
        provide Ingram with a current statement of account, listing all invoices
        outstanding and any payments made and credits given since the date of
        the previous statement, if any.


<PAGE>   3

                            4. OBLIGATIONS OF INGRAM.

        4.1 Ingram will list the Software in one or more of its catalogs and
        make the Software available to its customers.

        4.2 Ingram will advertise and/or promote the Software in a commercially
        reasonable manner and will transmit Software information and promotional
        materials to its customers, as reasonably necessary.

        4.3 As reasonably necessary, Ingram will make its facilities available
        for, and will assist Vendor in providing, Software training and support
        required under Section 3.2 hereof.

        4.4 Ingram will provide Software technical assistance to its customers
        as it is reasonably able to do so, and will refer all other technical
        matters directly to Vendor.

        4.5 On or before the effective date of this Agreement, Ingram shall
        issue to Vendor a noncancelable initial order for the minimum number of
        units of Software required in Exhibit A of this Agreement. Any
        subsequent orders made by Ingram to Vendor will require an order for the
        minimum number of units stated in Exhibit A.

        4.6 Units of Software returned to Ingram by its dealer customers under
        the Vendor's Money Back Guarantee shall in turn be returned by Ingram to
        Vendor for credit against future orders not more than once per calendar
        month, with costs of shipping to be borne by Vendor. Before shipping any
        Software to Vendor pursuant to this Section, Ingram shall first obtain a
        return authorization number from Vendor by contacting Vendor's corporate
        headquarters in Peabody, MA. Once the returned Software has been
        received by Vendor, Vendor shall credit Ingram's account with such
        credit to be used by Ingram against future orders.

        The terms of Vendor's Money Back Guarantee are subject to change by
        Vendor upon thirty (30) days written notice to Ingram.

        4.7 Ingram shall use commercially reasonable efforts to maintain
        complete customer records for five (5) years after each sale. Ingram
        shall also provide to Vendor reasonable assistance to investigate any
        health, safety, or other legitimate concern relating to the Software.
        This obligations shall survive the termination of this Agreement.

        4.8 Ingram shall provide to Vendor, within ten (10) days after the end
        of each calendar month (i) a detailed report by Software type of sale
        made during the previous calendar month within territories predefined by
        Vendor; and (ii) a detailed report of all Software in Ingram's inventory
        by location as of the end of the previous calendar month.

                               5. PRICE AND TERMS.

        5.1 The price and applicable discount, if any, for the Software shall be
        as set forth in Exhibit A. Ingram shall not be bound to sell Software to
        its customers at any prices suggested by Vendor.


<PAGE>   4

        5.2 Vendor shall have the right to change the list price of any Software
        upon giving thirty (30) days' prior written notice to Ingram. In the
        event that Vendor shall raise the list price of a Software, all orders
        for such Software placed prior to the effective date of the price
        increase shall be invoiced at the lower price.

        5.3 In the event of a decrease in the price of the Software, Vendor
        shall grant to Ingram a credit with respect to those units of such
        Software purchased by Ingram within the one hundred eighty (180) day
        period preceding the effective date of the price decrease and which
        remain in Ingram's inventory on the effective date of the price
        decrease. Such credit shall be equal to the difference between the price
        paid by Ingram and the adjusted price provided that Ingram applies for
        such price protection credit within thirty (30) days from the date of
        Vendor's public announcement of the price revision. This price
        protection credit may only be applied towards future purchases of Vendor
        Software.

        5.4 Payment in full for Ingram's initial order shall be made within
        ninety (90) days after the date of the Vendor invoice. Payment in full
        for each subsequent order shipped to Ingram shall be made within sixty
        (60) days after the date of the Vendor invoice. Should Vendor reasonably
        determine at any time that it should no longer extend credit to Ingram
        for orders, then Vendor may require Ingram to pay cash in advance or
        upon delivery or present an irrevocable letter of credit. If payment in
        full is made within ten (10) days of the invoice, one percent (1%) of
        the invoice amount (not including freight) may be deducted by Ingram
        from the amount due on that invoice. If payment in full is made prior to
        shipment, two percent (2%) of the invoice amount (not including freight)
        may be deducted by Ingram from the amount due on that invoice.

        5.5 Notwithstanding any other provision in this Agreement to the
        contrary, Ingram shall not be deemed in default under this Agreement if
        it withholds any payment to Vendor because of a legitimate dispute
        between the parties. If invoices are not paid in a timely manner, Vendor
        may refuse further shipments until Ingram's account is paid in full. *

        5.6 Ingram shall pay any and all sales, property, use, or excise taxes,
        duties or similar charges relating to the Software assessed by any
        government authority or regulatory agency unless Ingram presents Vendor
        with a valid certificate of exemption. Personal property taxes
        assessable on Software after delivery to the carrier are also Ingram's
        responsibility.

                                  6. SHIPPING.

        6.1 Vendor shall ship Software only pursuant to Ingram purchase orders
        received by Vendor. Delivery shall be effective when Software is placed
        in the possession of a carrier designated by Ingram on its standard
        freight routing instructions attached as Exhibit C and as may be amended
        by Ingram, packed with Vendor's standard commercial packing or other
        special packing materials requested by Ingram, F.O.B. point of origin.
        Title to the Software remains with Vendor (or its licensor) at all
        times, but risk of loss or damage passes to Ingram upon delivery to
        Ingram's carrier. Ingram shall be responsible for all costs of delivery.


        *Stopping shipment shall not constitute a termination of this Agreement.


<PAGE>   5

                 7. COOPERATIVE ADVERTISING AND MARKETING FUNDS.

        7.1 Ingram may advertise and promote the Software and/or Vendor in a
        commercially reasonable manner and may use Vendor's trademarks, service
        marks and trade names in connection therewith; provided that, Ingram
        shall submit the advertisement or promotion to Vendor for review and
        approval prior to initial release, which approval shall not be
        unreasonably withheld or delayed.

        7.2 Vendor agrees to cooperate with Ingram in advertising and promoting
        the Software and/or Vendor and hereby grants Ingram a cooperative
        advertising allowance of up to five percent (5%) of invoice amounts for
        Software purchased by Ingram from Vendor to the extent that Ingram or
        customer/dealers use the allowance for any advertising and promoting
        which features Software and/or Vendor. Upon receipt of reasonable
        evidence of advertising expenditures, Vendor agrees to credit the amount
        of any such expenditures against future purchases by Ingram.

        7.3 Vendor agrees to participate in the "Go With Ingram Micro" marketing
        program currently in effect. The cooperative advertising allowance
        granted under Section 7.2 above shall be reduced by two percent (2%) as
        specified in Exhibit B attached hereto. This program is subject to the
        terms and conditions set forth on Exhibit B attached hereto and made a
        part hereof.

        7.4 Vendor understands that additional marketing programs may be offered
        by Ingram to Vendor. Such programs may include a launch program that
        requires additional funds in addition to the cooperative advertising
        funds specified in Section 7.2. Participation in such additional
        marketing programs shall be at the sole discretion of Vendor.

                             8. DEMONSTRATION UNITS.

        8.1 At the request of Ingram, Vendor shall consign to Ingram a
        reasonable number, as determined by Vendor, of demonstration units of
        the Software to aid Ingram and its sales staff in the support and
        promotion of the Software. All units consigned will be returned to
        Vendor in good condition, reasonable wear and tear excepted, when
        requested by Vendor at any time eleven (11) months after delivery to
        Ingram.


<PAGE>   6

                               9. STOCK BALANCING.

        9.1 GENERAL STOCK BALANCING. Ingram may return unused, unopened units of
        Software which are contained in Vendor's then-current price list no more
        often than once per calendar month, for purposes of stock rebalancing or
        product exchange. Returns shall be shipped at Ingram's expense and must
        be accompanied by an order for Software of an equivalent dollar value.

        9.2 RETURNS AFTER TERMINATION. Upon termination, Vendor shall, at
        Ingram's request, repurchase one hundred percent (100%) of Ingram's
        purchases from Vendor during the calendar quarter preceding such
        termination. All Software must be new and unopened. Each party shall
        bear fifty percent (50%) of the cost of returning the Software to
        Vendor.

        9.3 RETURNS AFTER PRODUCT DISCONTINUATION. Vendor shall use its best
        efforts to provide Ingram with thirty (30) days written notice prior to
        Vendor's discontinuation of any Software. Upon receipt of such notice,
        Ingram may return all unused, unopened units of discontinued Software
        which remain in Ingram's inventory on the date such notice is received.

                             10. PRODUCT WARRANTIES.


        10.1 Vendor provides a warranty to the initial End-User of each unit of
        Software which covers the media upon which the Software is embedded for
        a period of ninety (90) days from the date of purchase by such End-User.
        Vendor expressly excludes any other warranties in relation to the
        Software, whether express, implied by statute, or otherwise, including,
        and without limitation, any warranty of merchantability or fitness for a
        particular purpose.

        10.2 Vendor's sole obligation shall be to issue a credit to be used
        against future purchases to Ingram for any media that proves to be
        defective during the warranty period. Units of Software returned to
        Ingram by its dealer customers under this warranty shall in turn be
        returned by Ingram to Vendor for credit to be used against future
        purchases, with such returns to take place not more than once per
        calendar month, with shipping costs to be borne by Vendor. Before
        shipping any Software to Vendor pursuant to this Section, Ingram shall
        first obtain a return authorization number from Vendor by contacting
        Vendor's corporate headquarters in Peabody, MA. Once the returned
        Software has been received by Vendor, Vendor shall issue a credit to
        Ingram for use against future purchases. Neither Ingram or its dealer
        customers may expand or alter this warranty.

        10.3 In the event Vendor recalls any or all of the Software due to
        defects, revisions, or upgrades, Ingram shall provide reasonable
        assistance in such recall; provided that, Vendor shall pay all of
        Ingram's expenses in connection with such recall, including handling
        charges per unit of Software of not less than two and one-half percent
        (2-1/2%) of the Product's list price.


<PAGE>   7

                                 11. INDEMNITY.

        11.1 Vendor shall defend Ingram from, and pay any judgment for direct
        infringement of any United States patent, trademark or copyright by any
        of the Software if Ingram promptly notifies Vendor in writing of any
        infringement assertion, and allows and assists Vendor to defend any
        infringement suit. Vendor shall not be liable for litigation expenses or
        settlements by other parties unless Vendor agrees in writing. If any
        infringement is asserted against Vendor or Ingram, Vendor, at its
        option, may obtain a license at no cost to Ingram, or modify or remove
        the Software, or substitute software. Vendor is not liable for any
        infringement due to the Software being made or modified to Ingram
        specifications or designs, modified other than by Vendor; used or sold
        in combination with any equipment, software or supplies not provided by
        Vendor; or used to produce images in violation of the proprietary rights
        of third parties. The liability of Vendor under this Section shall be
        limited in all instances to one million dollars ($1,000,000.). Vendor
        makes no other express or implied warranty of noninfringement and has no
        other liability for infringement or any damages thereon.

        11.2 The foregoing indemnity does not apply, and Ingram agrees to
        indemnify Vendor (including all costs and attorneys' fees), with respect
        to any claim brought against Vendor concerning patent or copyright
        infringement allegedly from (1) the combination or utilization by Ingram
        of any Software with equipment not made or provided by Vendor; (2) the
        unauthorized modification of any Software by Ingram; (3) any Software
        manufactured by Vendor to Ingram's specifications; or (4) the production
        of images by Ingram in violation of the proprietary rights of third
        parties. If any claim of patent infringement is made under the foregoing
        circumstances, Vendor may refuse to make further shipments to Ingram.
        The liability of Ingram under this Section shall be limited in all
        instances to one million dollars ($1,000,000.). Ingram makes no other
        express or implied warranty of noninfringement and has no other
        liability for infringement or any damages thereon.

        11.3 Vendor is named as a party in any suit commenced on a claim under
        the circumstances set forth in Section 11.2, Ingram shall defend such
        suit, and Vendor shall assist Ingram (at Ingram's expense) in any
        reasonable manner. Ingram shall have sole control over the defense and
        settlement negotiations.

        11.4 Each party (the "indemnifying party") agrees, if promptly notified
        by the other and given the right to control the defense and approve any
        settlements thereof, to indemnify and hold harmless the other party
        hereto (the "indemnified party") from and against all claims or
        liabilities of third parties arising out of this Agreement and (1)
        attributable to personal injury (including death) or damage to tangible
        property and (2) proximately caused by the intentional, reckless, or
        negligent act or omission of the indemnifying party. Such
        indemnification shall include the payment of reasonable attorneys' fees
        and other costs incurred by the indemnified party in defending against
        such claims. The indemnifying party shall no liability under the
        foregoing indemnity for incidental, consequential, indirect, or special
        damages, including but not limited to loss of profits. The indemnifying
        party shall have no obligation hereunder with respect to any claim or
        cause of action or portion thereof for damages to persons (including
        death) or damage to tangible property proximately caused by the fault,
        culpability or negligence of any person other than the indemnifying
        party.


<PAGE>   8

        11.5 EXCEPT FOR INDEMNIFICATION CLAIMS ARISING UNDER THIS AGREEMENT, THE
        MAXIMUM LIABILITY OF VENDOR TO INGRAM, ITS EMPLOYEES, DEALERS, AGENTS
        AND END-USERS, OR ANY OTHER PERSON CLAIMING UNDER INGRAM FOR DIRECT
        DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT, WHETHER SUCH
        LIABILITY ARISES FROM ANY CLAIM BASED UPON CONTRACT, WARRANTY, TORT OR
        OTHERWISE, SHALL IN NO EVENT EXCEED THE TOTAL AMOUNT PAID BY TO VENDOR
        BY INGRAM FOR THE SOFTWARE GIVING RISE TO THE CLAIM. IN NO EVENT SHALL
        EITHER PARTY BE LIABLE FOR LOST PROFITS, ANY SPECIAL, INDIRECT,
        INCIDENTAL OR CONSEQUENTIAL DAMAGES IN ANY WAY ARISING OUT OF OR
        RELATING TO THIS AGREEMENT, EVEN IN THE EVENT SUCH PARTY HAS BEEN
        ADVISED AS TO THE POSSIBILITY OF SUCH DAMAGES.

                              12. PRODUCT MARKINGS.

        12.1 Vendor shall clearly mark on the packaging of each unit of Software
        the Software's name and computer compatibility. Such packaging shall
        also bear a machine-readable bar code identifier scannable in standard
        ABCD format which identifies the Software and its serial number and
        fully complies with all conditions regarding standard product labeling
        set forth in "Ingram Micro's Guide To Bar Code: The Product Label," as
        amended from time to time.

                       13. REPRESENTATIONS AND WARRANTIES.

        Vendor warrants and represents that:

        13.1 The Software or its use does not infringe upon any United States
        patents, copyrights, trademarks, trade secrets, or other proprietary
        rights of others, and that there are not any suits or proceedings
        pending or threatened which allege that any Software or the use thereof
        infringes upon such proprietary rights;

        13.2 The Software prices offered herein are equal to the prices
        available to any like distributor within the United States to whom
        Vendor sells the Software. In the future all prices for Software made
        available to Ingram shall be at least equal to the prices available to
        any like distributor in the United States of the Software;

        13.3 Sales to Ingram of the Software at the listed prices and/or
        discounts do not in any way constitute violations of federal, state, or
        local laws, ordinances, rules or regulations, including any antitrust
        laws or trade regulations;


<PAGE>   9

                                  14. DEFAULTS.

        14,1 For purposes of this Agreement, a party shall be in default if (a)
        it materially breaches a term of this Agreement and such breach
        continues for a period of ten (10) business days after it has been
        notified of the breach, or (b) it shall cease conducting business in the
        normal course, become insolvent, make a general assignment for the
        benefit of creditors, suffer or permit the appointment of a receiver for
        its business or assets, or shall avail itself of or become subject to
        any proceeding under the Federal Bankruptcy Act or any other federal or
        state statute relating to insolvency or the protection of rights of
        creditors.

        14.2 Upon the occurrence of an event of default as described in Section
        14.1, the party not in default may immediately terminate this Agreement
        by giving written notice to the party in default.

        14.3 The rights and remedies provided to the parties in this Section 14
        shall not be exclusive and are in addition to any other rights and
        remedies provided by this Agreement or by law or in equity.

                                 15. INSURANCE.

        15.1 Each party shall maintain during the life of this Agreement
        insurance with an insurance company reasonably acceptable to the other
        to include liability coverage sufficient to cover its obligations under
        this Agreement.

                              16. OTHER PROVISIONS.

        16.1 CONSTRUCTION. This Agreement shall be construed and enforced in
        accordance with the laws of the State of California, except that body of
        law concerning conflicts of law.

        16.2 NOTICES. All notices, requests, demands and other communications
        called for or contemplated hereunder shall by in writing and shall be
        deemed to have been duly given when (i) personally delivered; (ii) two
        (2) days after mailing by U.S. certified or registered first-class mail,
        prepaid; or (iii) one (1) day after deposit with any nationally
        recognized overnight courier, with written verification of receipt, and
        addressed to the parties at the addresses set forth at the end of this
        Agreement or at such other addresses as the parties may designate by
        written notice.

        16.3 ATTORNEY'S FEES. In the event suit is commenced to enforce this
        Agreement or otherwise relating to this Agreement, the prevailing party
        shall be entitled to reasonable attorneys' fees and costs incurred in
        connection therewith.

        16.4 COUNTERPARTS. This Agreement may be executed in one or more
        counterparts, each of which shall be deemed an original, but all of
        which together shall constitute one and the same instrument; however,
        this Agreement shall be of no force or effect until executed by both
        parties.


<PAGE>   10

        16.5 CONFIDENTIAL INFORMATION. Subject to the exceptions listed below,
        all information of one party ("the disclosing party") which is marked
        proprietary, confidential or "private date" and is made available to the
        other ("the receiving party") will be held in confidence by the
        receiving party and will not be disclosed by it to third parties, or
        used by it, except to the extent authorized by this Agreement. If the
        informations is provided orally or visually, the disclosing party will
        identify the disclosure as being proprietary or confidential at the time
        of disclosure and, within thirty (30) days thereafter, reduce it to
        writing and provide it to the receiving party. The receiving party may
        release such confidential information within its own organization on a
        need-to-know basis only. The receiving party's obligations under this
        Section shall survive the termination or expiration of this Agreement.

        The receiving party's obligation hereof shall terminate with respect to
        any particular portion of the disclosing party's information, other than
        software source code, (i) when the receiving party can document that:

        (a) it was in the public domain at the time of the disclosing party's
        communication thereof to the receiving party,

        (b) it entered the public domain through no fault of the receiving party
        subsequent to the time of the disclosing party's communication thereof
        to the receiving party,

        (c) it was in the receiving party's possession free of any obligation of
        confidence at the time of the disclosing party's communication thereof
        to the receiving party, or

        (d) it was rightfully communicated to the receiving party free of any
        obligation of confidence subsequent to the time of the disclosing
        party's communication thereof to the receiving party;

        or (ii) when it is communicated by the disclosing party to a third party
        free of any obligation of confidence; or (iii) in any event, five (5)
        years after the disclosing party's communication thereof to the
        receiving party.

        All materials furnished to the receiving party by the disclosing party
        that are designated in writing to be the property of the disclosing
        party shall remain the property of the disclosing party and shall be
        returned to the disclosing party promptly at its request or upon
        termination of this Agreement, with all copies made thereof.

        16.6 NO IMPLIED WAIVERS. The failure of either party at any time to
        require performance by the other party of any provision hereof shall not
        affect in any way the full rights to require such performance at any
        time thereafter. The waiver by either party of a breach of any provision
        hereof shall not be taken, construed, or held to be a waiver of the
        provision itself or a waiver of any breach thereafter or any other
        provision hereof.

        16.7 CAPTIONS AND SECTION HEADINGS. Captions and section headings used
        herein are for convenience only, are not a part of This Agreement, and
        shall not be used in construing it.

        16.8 COVENANT OF FURTHER COOPERATION. Each of the parties agrees to
        execute and deliver such further documents and to cooperate in such
        manner as may be necessary to implement and give effect to the
        agreements contained herein.


<PAGE>   11

        16.9 BINDING ON HEIRS AND SUCCESSORS. This Agreement shall be binding
        upon and shall inure to the benefit of each party, its successors and
        assigns.

        16.10 ASSIGNMENT. Neither party may assign, transfer, or sell any of its
        rights, or delegate any of its responsibilities under this Agreement
        without the prior written consent of the other. Such consent shall not
        be unreasonably withheld.

        16.11 DISPUTES. The parties agree that, before initiating any litigation
        involving a dispute, controversy, or claim arising out of or relating to
        this Agreement (including, but not limited to, any claim concerning the
        entry into, performance under or termination of this Agreement), they
        will attempt in good faith to resolve their dispute through nonbinding
        mediation. Any action under or arising out of this Agreement or the
        breach, termination or invalidity thereof, must be commenced within one
        (1) year after the cause of action accrued, except that actions for
        nonpayment must be commenced within three (3) years after the date the
        payment was due.

        16.12 EXPORT CONTROL. Ingram shall not export any Software obtained from
        Vendor hereunder to any country for which the United States or any
        agency thereof requires, at the time of export, an export license or any
        other governmental approval without first obtaining such license or
        approval.

        16.13 SEVERABILITY. A judicial determination that any provision of this
        Agreement is invalid in whole or in part shall not affect the
        enforceability of those provisions found not to be invalid.

        16.14 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
        between the parties hereto pertaining to the subject matter hereof,
        superseding any and all previous proposals, representations or
        statements, oral or written. Any previous agreements between the parties
        pertaining to the subject matter of this Agreement are hereby expressly
        canceled and terminated. The terms and conditions of each party's
        purchase orders, invoices, acknowledgments/confirmations or similar
        documentation shall not apply to any order hereunder, and any such terms
        and conditions thereon shall be deemed to be objected to without need of
        further notice or objection. Any modifications of this Agreement must be
        in writing and signed by authorized representatives of both parties
        hereto.


<PAGE>   12

        16.12 PARTIES EXECUTING. The parties executing this Agreement warrant
        that they have the requisite authority to do so.


            IN WITNESS WHEREOF, the parties hereunto have executed this
Agreement.


"Ingram"                                   "Vendor"


Ingram Micro Inc.                          Xerox Imaging Systems, Inc.
1600 E. St. Andrew Place                   9 Centennial Drive
Santa Ana, CA 92705                        Peabody, MA 01960

By: /s/ Sanat K. Dutta                     By: /s/ Michael K. Tivnan
   ---------------------------                ----------------------------------

Sanat K. Dutta                             Name:  Michael K. Tivnan
Senior Vice President                               (print or type)
Operations
                                           Title:*  General Manager
Date:  9/22/93                             Date:  9/22/93

*AGREEMENT MUST BE SIGNED BY A DULY AUTHORIZED VICE PRESIDENT OR PARTNER.


<PAGE>   13

                                    EXHIBIT A

                               PRODUCT PRICE LIST


The prices for the Software offered under this Agreement shall be (check one):

[ ]   As shown on Vendor's price list dated __________.

[X]   As shown below.


<TABLE>
<CAPTION>
Software                           List Price          Discount
- --------                           ----------          --------
<S>                                <C>                 <C>
TextBridge                          $  99.00             42%
AccuText                            $ 495.00             50%
</TABLE>

Minimum order quantity is 25 units.
<PAGE>   14

                                    EXHIBIT B

                     GO WITH INGRAM MICRO MARKETING PROGRAM

          Vendor agrees to participate in the "Go with Ingram Micro" marketing
          program (hereinafter the "Program") subject to the following terms and
          conditions:

          1. Vendor hereby grants to Ingram a Program allowance equal to two
          percent (2%) of invoice amounts for Software purchased by Ingram. Upon
          receipt of reasonable evidence of advertising expenditures, Vendor
          agrees to credit the amount of any such expenditures against future
          purchases by Ingram. The cooperative advertising allowance granted
          under Section 7.2 of the Agreement shall be reduced by an amount equal
          to the Program allowance granted hereunder, it being the understanding
          of the parties that the Program allowance is to be a part of the
          cooperative advertising allowance and not an addition thereto. Ingram
          agrees to reconcile and adjust the Program allowance quarterly to
          account for any Software returns.

          2. The Program allowance will be used by Ingram to fund Software
          promotions and advertising, to provide general sales incentives
          throughout its distribution channels, and to administer the Program.

          3. The term of the Program shall end on June 30 following the
          commencement date of this Agreement, and shall be renewed for
          successive one (1) year terms without further notice, subject to
          Ingram's right to terminate the Program, or Vendor's right to
          terminate its participation therein, at the end of a term by giving
          the other party at least ninety (90) days' written notice prior to the
          end of the term.


<PAGE>   15

AMENDMENT NO. 1                                                 JANUARY 23, 1995
DISTRIBUTION AGREEMENT                                                  PAGE ONE


        Ingram Micro Inc. ("Ingram") and Xerox Imaging Systems, Inc. ("Vendor")
hereby agree to amend their mutual Distribution Agreement, dated September 23,
1993 as follows:


1.      Ingram and Vendor agree to incorporate the addition of Software Products
        listed in the attached Exhibit A-1.

2.      This amendment shall remain in effect for the current and any renewal
        term of the Agreement.


Notwithstanding the foregoing, all other provisions of the Agreement remain
unchanged. The signer has read this Amendment, agrees hereto, and is an
authorized representative of its respective party.


INGRAM MICRO INC.                        XEROX IMAGING SYSTEMS, INC.


By: /s/ Sanat K. Dutta                   By: /s/ Michael K. Tivnan
   -------------------------------          ------------------------------------

Name:  Sanat K. Dutta                    Name:  Michael K. Tivnan

Title:  Executive Vice President         Title:  General Manager

Date:  1/23/95                           Date:  1/30/95


<PAGE>   16
                                   EXHIBIT A-1

                               PRODUCT PRICE LIST


The prices for the Products offered under this Agreement shall be (check one):

[ ]    As shown on Vendor's price list dated __________________.


[X]    As shown below.

<TABLE>
<CAPTION>
Software                       List Price                  Discount
- --------                       ----------                  --------
<S>                            <C>                         <C>
TabWorks                         $49.00                       45%
</TABLE>

Minimum order quantity is 25 units.
<PAGE>   17
AMENDMENT NO. 2                                                   MARCH 16, 1995
DISTRIBUTION AGREEMENT                                                  PAGE ONE


        Ingram Micro Inc. ("Ingram") and Xerox Imaging Systems, Inc. ("Vendor")
hereby agree to amend their mutual Distribution Agreement, dated September 23,
1993 as follows:


        1.      Ingram and Vendor agree to incorporate the pricing changes of
                Software Products listed in the attached Exhibit A-2.

        2.      This amendment shall remain in effect for the current and any
                renewal term of the Agreement.



Notwithstanding the foregoing, all other provisions of the Agreement remain
unchanged. The signer has read this Amendment, agrees hereto, and is an
authorized representative of its respective party.

INGRAM MICRO INC.                        XEROX IMAGING SYSTEMS, INC.

BY: /s/ SANAT K. DUTTA                   BY: /s/ WAYNE CRANDALL
    -------------------------------          -----------------------------------
    NAME:  SANAT K. DUTTA                    NAME:  WAYNE CRANDALL
    TITLE: EXECUTIVE VICE PRESIDENT          TITLE: VP, SALES
    DATE:  4 APRIL 1995                      DATE:  22 MARCH 1995
<PAGE>   18

                                   EXHIBIT A-2

                               PRODUCT PRICE LIST


This Amendment supersedes Exhibit A and A-l Product Price Lists


<TABLE>
<CAPTION>
                                                  DISCOUNT ON    DEDUCT FROM
SOFTWARE                            LIST PRICE      INVOICE        INVOICE
- --------                            ----------    -----------    -----------
<S>                                 <C>           <C>            <C>
TextBridge for Windows               $  99.00         42%            5%

TextBridge for Macintosh             $  99.00         42%            5%

TextBridge Professional Edition      $ 349.00         40%            5%
(Windows)

TextBridge Professional Edition      $ 199.00         20%            5%
(Competitive Upgrade)

TabWorks                             $  49.00         40%            5%

</TABLE>


The price after the Deduction From Invoice (DFI) has been taken shall be the
price that Ingram Micro will pay Vendor for product.

Ingram will only offer the TextBridge Professional Competitive Upgrade software
to those resellers that are specified by Vendor.


<PAGE>   19

AMENDMENT NO. 3                                                   AUGUST 1, 1996
DISTRIBUTION AGREEMENT                                           PAGE ONE OF ONE


        Ingram Micro Inc. ("Ingram") and Xerox Imaging Systems, Inc. ("Vendor")
hereby agree to amend their mutual Distribution Agreement, dated September 23,
1993 as follows:


1. Vendor authorizes Ingram on a non-exclusive basis to distribute Products in
the educational market ("Academic"). Academic Products and prices are specified
as listed in the attached Exhibit A-2.

2. This amendment shall remain in effect for the current and any renewal term of
the Agreement.



Notwithstanding the foregoing, all other provisions of the Agreement remain
unchanged. The signer has read this Amendment, agrees hereto, and is an
authorized representative of its respective party.


INGRAM MICRO INC.                           XEROX IMAGING SYSTEMS, INC.


By: /s/ Sanat K. Dutta                      By:
   -------------------------------             ---------------------------------

Name:  Sanat K. Dutta                       Name:  Wayne Crandall

Title:  Executive Vice President            Title:  Vice President Sales

Date:  8/20/96                              Date:
                                                 ------------------


<PAGE>   20
                                  EXHIBIT A -2

                           ACADEMIC PRODUCT PRICE LIST


The prices for the Products offered under this Agreement shall be (check one):

[ ]  As shown on Vendor's price list dated ____________.


[ ]  As shown below.

<TABLE>
<CAPTION>
Software                          List Price                   Discount
- --------                          ----------                   --------
<S>                               <C>                          <C>
</TABLE>
<PAGE>   21
                               AMENDMENT 4 TO THE
                             DISTRIBUTION AGREEMENT


THIS AMENDMENT (the "Amendment") is entered into this 15th day of May, 1997, by
and between INGRAM MICRO INC. ("Ingram") and Xerox Imaging Systems, Inc.
("Vendor").

The parties have agreed to amend the Distribution Agreement ("Agreement")
between Ingram and Vendor dated September 22, 1993.

1.      Section 1.1 - Grant of Distribution Rights
        Revise the first sentence to read: "Vendor hereby appoints Ingram as a
        non-exclusive, authorized distributor of the Vendor software products
        listed in Exhibit A ("the software") to Ingram's customers within the
        United States, Canada and all of Asia Pacific."

2.      This amendment shall remain in effect for the current and any renewal
        term of the Agreement.

Notwithstanding the foregoing, all other provisions of the Agreement remained
unchanged. The signed has read this Amendment, agrees hereto, and is an
authorized representative of its respective party.

INGRAM MICRO INC.                          XEROX IMAGING SYSTEMS, INC.


BY: /s/ V L COTTEN                         BY: /s/ WAYNE CRANDALL
    ----------------------------               ---------------------------------
    NAME:  VICTORIA L. COTTEN                  NAME:  WAYNE CRANDALL
    TITLE: SR. VP PURCHASING                   TITLE: VP SALES
    DATE:  7-8-97                              DATE:  6-26-97


<PAGE>   22
INGRAM
MICRO

                               AMENDMENT #5 TO THE
                             DISTRIBUTION AGREEMENT


THIS AMENDMENT (the "Amendment") is entered into this 26th day of March, 1998,
by and between INGRAM MICRO INC. ("Ingram") and SCANSOFT, INC. ("Vendor")

The parties have agreed to amend their Distribution Agreement ("Agreement")
dated September 23, 1993.

1.      Replace the existing five percent (5%) DFI with "early pay discount
        terms of two percent (2%) sixty (60) days net sixty one (61) days and on
        an ongoing quarterly sales out rebate of three percent (3%) which
        includes a reporting feature."

2.      This Amendment shall remain in effect for the current term and any
        renewal term of the Agreement.

Notwithstanding the foregoing, all other provisions of the Agreement remain
unchanged. The undersigned has read this Amendment, agrees hereto, and is an
authorized representative of its respective party.

INGRAM MICRO INC.                           SCANSOFT, INC.
1600 East St. Andrew Place                  9 Centennial Drive
Santa Ana, CA 92705                         Peabody, MA 01960

By: /s/ V L Cotten                          By: /s/ Wayne S. Crandall
    --------------------------------            --------------------------------
    Name:  Victoria L. Cotton                   Name:  Wayne S. Crandall
    Title: Sr. Vice President Purchasing        Title: Vice President



<PAGE>   1
                                                                   EXHIBIT 10.15


                                 SCANSOFT, INC.
                                 A XEROX COMPANY

              GOLD DISK BUNDLING AGREEMENT: PAGIS(TM)SE & PAGIS PRO

This Agreement is between Xerox Corporation, through its Channels Group
("BUYER"), a having its principal offices at East Rochester, New York and
SCANSOFT, INC. ("SCANSOFT"), a Delaware corporation, having offices at 9
Centennial Drive, Peabody, MA 01960.


1.0     PREMISES

1.1     This Agreement applies only to the ScanSoft-brand software product(s)
        listed in Exhibit A (referred to collectively as the "SOFTWARE").

1.2     Buyer wishes to acquire a master copy of the Software and its
        documentation on disk (the "GOLD DISK"), produce copies of the Software
        and its associated documentation, combine such Software with other
        Products to create Bundled Solutions and to distribute such Bundled
        Solutions to Resellers and to End-Users.

1.3     DEFINITIONS:

        (a)     "AGREEMENT" means this Gold Disk Bundling Agreement, including
                any exhibits or schedules attached hereto.

        (b)     "PRODUCTS" means the Buyers products (hardware and/or other
                software) which are intended to be bundled with the Software as
                described in Exhibit B.

        (c)     "RESELLER" means a customer who sublicenses the Software from
                Buyer solely for further sublicense, without modification, to
                End-User customers as part of one or more of the Bundled
                Solutions.

        (d)     "END-USER" means a third-party customer to whom Buyer or its
                Reseller shall sublicense the Software as part of one or more of
                the Bundled Solutions for use other than further sublicense.

        (e)     "MARKS" means any ScanSoft trademarks, logos, trade names, and
                identifying slogans which are licensed to Buyer under this
                Agreement. All Marks whether registered or not, are the
                exclusive or licensed property of ScanSoft.

        (f)     "BUNDLED SOLUTIONS" means the integrated systems consisting of
                the Software as combined with Buyer's Products specified in
                Exhibit B.

1.4     It is a fundamental premise of this Agreement, that Buyer shall use the
        Software licensed hereunder with the Products to produce one or more of
        the Bundled Solutions. Buyer reserves the right to sell Products without
        the Software. Buyer shall not distribute the Software except as part of
        the Bundled Solutions.

2.0     LIMITATIONS

2.1     Buyer's sole relationship with ScanSoft shall be that of an independent
        contractor. Buyer shall make no warranties or representations, or assume
        or create any obligations, on ScanSoft's behalf except as may be


<PAGE>   2

        expressly permitted in writing by ScanSoft. Each party shall be solely
        responsible for the actions of all their respective employees, agents
        and representatives.

2.2     Buyer has no distribution or other right to any ScanSoft-brand products,
        accessories, or supplies, either presently available or that become
        available, other than the Software listed in Exhibit A.

2.3     ScanSoft' right to sell through other channels. Buyer understands that
        ScanSoft presently markets its products, including the Software,
        throughout the world through various channels in addition to other OEM
        licensors and that ScanSoft may continue to market and license any or
        all of the Software and any associated services without any restrictions
        whatsoever. Nothing in this Agreement prohibits ScanSoft from entering
        into an agreement directly with distributees of the Buyer's Bundled
        Solutions, including End-Users.

3.0     ADDITIONAL RESPONSIBILITIES OF BUYER

3.1     MARKETING. Buyer shall advertise the Software as used in the Bundled
        Solutions in a commercially acceptable manner, conforming to all legal
        requirements and proper trademark usage (specified in Exhibit F). Each
        party agrees to participate, to the extent such participation is
        commercially reasonable, in product announcements and introductions
        sponsored by the other party in connection with the transactions
        contemplated hereby and in accordance with the joint marketing plan.

        3.1.1   "Pagis by ScanSoft" and/or the ScanSoft Software logo must be
                prominently displayed in all advertising, product literature,
                and in a conspicuous location on the Bundled Solutions
                packaging. ScanSoft will provide the artwork for the logo. Buyer
                will conform to the ScanSoft logo usage guidelines listed in
                Exhibit E.

        3.1.2   ScanSoft shall be included in the review and approval cycles for
                advertisements and brochures to ensure that Buyer is compliant
                with the logo and trademark usage guidelines.

        3.1.3   ScanSoft reserves the option to include on-screen or Try-n-Buy
                upgrade offers for other ScanSoft software products.

        3.1.4   Buyer agrees to provide ScanSoft with access to all registered
                customers of Buyers Bundled Solutions at reasonable intervals
                not to exceed four (4) times per year, for direct mail upgrade
                purposes.

        3.1.5   Buyer will, if commercially practicable, issue a press release
                to coincide with the Bundled Solutions announcement that
                announces the inclusion of the ScanSoft Software in the Bundled
                Solution.

        3.1.6   Buyer shall provide ScanSoft, at no charge, at least two (2)
                units of the Bundled Solutions to be used for promotional
                activities.

        3.1.7   WEB SITES. Cross links between ScanSoft' and Buyer's web pages
                will, to the extent practicable, be created to further promote
                our strategic partnership.

3.2     Buyer shall not cause any advertising to be published, or make any
        representation (oral or written), which might mislead the public or
        which is detrimental to the goodwill of ScanSoft or the Software.

3.3     Buyer shall ensure that the Software will be sublicensed to a Reseller
        or End-User only under a written "shrink-wrapped" sublicense provided in
        Exhibit C.

3.4     ROYALTY FEES AND REPORTS. The Software shall be licensed at the fee(s)
        set forth in Exhibit A, subject to change by written agreement of the
        parties from time to time. All payments shall be made in United States
        dollars. The fee is payable to ScanSoft on each copy of Software made by
        Buyer regardless of how Buyer uses such copy, except that Buyer may use
        a reasonable agreed number of copies for demonstration purposes without
        paying a license fee.


<PAGE>   3

        3.5.1   Buyer shall provide to ScanSoft, as specified in Exhibit A, a
                detailed statement, certified by an authorized representative of
                Buyer, setting forth the number of units of the Bundled
                Solutions on or in which copies of the Software were
                incorporated (regardless of whether any unit of Bundled Solution
                is actually placed into use) during the previously completed
                calendar quarter. The statement shall be accompanied by payment
                in full of the fees shown in Exhibit A to be payable.

        3.5.2   In the event that the Buyer fails to make any payment on or
                before the payment date, ScanSoft may require the Buyer to pay
                interest at a rate equal to the lesser of (i) 1.5% per month,
                compounded monthly, or (ii) the maximum rate permitted by
                applicable law. ScanSoft shall be entitled to recover all costs
                and expenses, including reasonable attorney's fees, incurred by
                it in connection with the enforcement of the terms of this
                agreement.

        3.5.3   In addition to the fee for any Software used by Buyer, Buyer
                shall be responsible for the payment of all sales, property,
                use, or excise taxes, duties or similar charges relating to the
                Software assessed by any government authority or regulatory
                agency. Upon execution of this Agreement, Buyer shall provide
                ScanSoft with copies of its resale exemption certificate(s).
                Personal property taxes assessable on the Software after
                delivery to the shipper are Buyer's responsibility.

3.6     AUDIT. ScanSoft shall have the right to inspect the records of Buyer on
        reasonable notice and during regular business hours to verify the
        reports and payments required to be made hereunder. Such records shall
        be maintained for a period of at least three (3) years from the date of
        creation of such record. The cost of such audit shall be borne by
        ScanSoft unless such audit reveals an error rate of five percent (5%) or
        more in favor of ScanSoft. Payment of any amount determined to be due as
        a result of such audit shall be made within thirty (30) days of receipt
        of ScanSoft' invoice therefor.

4.0     TECHNICAL SUPPORT

4.1     ScanSoft shall provide Buyer with technical support including, one
        initial product training session to be administered at ScanSoft
        facilities. Buyer shall then assume responsibility for such ongoing
        support and training as it requested by Buyer's customers with respect
        to the Software.

4.2     ScanSoft will provide technical support to Buyer's Customer Support, as
        it may be reasonably requested by Buyer, to fulfill its maintenance
        obligations to its Resellers and End-Users. Technical support shall
        include telephone support to Buyer's engineering staff on the operation,
        integration and utilization of the Software, and maintenance
        modifications and bug corrections for the Software to bring them into
        conformance with the specifications. There will be no charge to Buyer
        for this level of support, however for the purposes of providing
        support, Buyer shall furnish ScanSoft with two (2) units of each Buyer
        Product listed in Exhibit B. When a customer problem is determined by
        Buyer's Customer Support to be associated directly with the Software
        listed in Exhibit A, and resolution of the problem is not within the
        range of training received or knowledge accrued by Buyers Customer
        Support, Buyer's Customer Support may either contact ScanSoft's
        telephone support for assistance or refer the End-User directly to
        ScanSoft's Customer Support.

4.3     If customer problem is determined to be caused by a defect in media,
        Buyer shall issue a replacement media to the customer and Buyer agrees
        to pay for all associated costs incurred by such replacement, and
        ScanSoft shall have no liability arising out of or related to such
        customer problem.


5.0     END-USER REFERENCE MATERIALS

        ScanSoft hereby grants Buyer the right to draft End-User reference
        materials for its End-Users. Buyer shall have the right to incorporate
        portions of ScanSoft's copyrighted documentation regarding the Software
        into Buyer's materials, as long as all ScanSoft copyrights are preserved
        and ScanSoft copyright notices reproduced.

6.0     TITLE


<PAGE>   4

        Title and all rights of ownership to the Software, and all copies of all
        or any part thereof, are and remain with ScanSoft at all times. Buyer
        agrees to place ScanSoft's copyright notice (using the international
        copyright symbol) on each copy of Software made by Buyer. ScanSoft's
        copyright notice must be displayed on the packaging of the media
        containing the Software.

7.0     WARRANTIES

7.1     ScanSoft warrants that title to all Software shall be free and clear of
        all interests or claims of third parties.

7.2     The Software provided to Buyer herein is licensed "AS IS". ScanSoft
        shall warrant the Gold Disk to be free from known viruses and defects in
        materials and workmanship for a period of thirty (30) days from the date
        of acceptance. ScanSoft agrees to employ reasonable efforts and use
        commercially available virus checking means in the effort to detect and
        remove a virus from the Software. Buyer also agrees to employ reasonable
        efforts and use commercially available virus checking software to detect
        for a virus. If Buyer detects a virus then, ScanSoft must receive notice
        of any such known viruses or defects in media within thirty (30) days
        after delivery to Buyer. Buyer's failure to notify ScanSoft within
        thirty (30) days after delivery shall constitute final acceptance by
        Buyer. Under such warranty, ScanSoft' sole obligation shall be to
        replace the media which is defective or contains a known virus.

7.3     EXCEPT AS EXPRESSLY SET FORTH IN SECTIONS 7.1-7.2, SCANSOFT MAKES NO
        OTHER WARRANTIES TO BUYER AND DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS
        OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR
        FITNESS FOR A PARTICULAR PURPOSE.

7.4     End-User Warranty. At the time of licensing to the first End-User of
        each unit of the Software, Buyer, or its Reseller customers as Buyer's
        agreements with them shall require, shall offer as a minimum warranty,
        the then-current ScanSoft End-User Warranty for the Software set forth
        in Exhibit C herein (the "Software License Agreement") as the same may
        be modified by ScanSoft from time to time.

        7.4.1   All ScanSoft End-User Warranties are subject to change by
                ScanSoft upon thirty (30) days written notice to Buyer. Such
                changes shall only apply to all Software marketed after the
                expiration of the notice period.

8.0     LICENSE

8.1     LICENSE GRANT. ScanSoft hereby grants to Buyer, under ScanSoft's
        applicable patents, copyrights and other intellectual property rights, a
        nonexclusive, worldwide license to use the Software and reproduce copies
        in object code format only, onto the media form contained within a
        Bundled Solution and to distribute such copies with the Bundled
        Solutions sold, leased and/or licensed by Buyer. Each use of any given
        Software within any Bundled Solution must be identified separately in
        Exhibit B.

8.2     Buyer shall ensure that each copy of the Software is marketed with (1)
        the Software's user documentation, (2) the ScanSoft Software License
        Agreement, and (3) ScanSoft's Warranty Card. Buyer shall adhere to
        ScanSoft's specifications for the Software's user documentation when
        manufacturing such documentation. Any deviations from such
        specifications will require advance written approval from ScanSoft.

8.3     In association with the manufacture of the Bundled Solutions, Buyer may
        sublicense its right to reproduce copies of the Software and/or related
        documentation under the same Buyer terms and conditions established in
        this Agreement. In association with distribution of the Bundled
        Solutions, Buyer may sublicense its right to distribute copies, to its
        subsidiaries and Resellers. Buyer shall take appropriate measures to
        ensure that any software media containing the Software is free from
        viruses or media defects.

8.4     No other rights to the Software are granted by ScanSoft to Buyer under
        this Agreement. In particular, but not by way of limitation, Buyer shall
        have no right to create derivative works of the Software.



<PAGE>   5

8.5     Buyer shall not modify the Software supplied hereunder in any way
        without the prior written consent of ScanSoft.



9.0     INFRINGEMENT INDEMNITY

9.1     ScanSoft will defend Buyer from, and pay any judgment for, direct
        infringement of any United States patent, trademark or copyright by any
        of the Software if Buyer promptly notifies ScanSoft in writing of any
        infringement assertion, and allows and assists ScanSoft to defend any
        infringement suit. ScanSoft shall not be liable for litigation expenses
        or settlements by other parties unless ScanSoft agrees in writing. If
        any infringement is asserted against ScanSoft or Buyer, ScanSoft, at its
        option, may obtain a license at no cost to Buyer, or modify or remove
        the Software, or substitute software. ScanSoft is not liable for any
        infringement due to the Software being made or modified to Buyer
        specifications or designs; modified other than by ScanSoft; used or sold
        in combination with any equipment, software or supplies not provided by
        ScanSoft; or used to produce images in violation of the proprietary
        rights of third parties. The liability of ScanSoft under this Section
        shall be limited in all instances to the total price of infringing
        Software acquired by Buyer. ScanSoft makes no other express or implied
        warranty of noninfringement and has no other liability for infringement
        or any damages thereon.

9.2     The foregoing indemnity does not apply, and Buyer agrees to indemnify
        ScanSoft (including all costs and attorneys' fees), with respect to any
        claim brought against ScanSoft concerning patent or copyright
        infringement allegedly arising from: (1) the unauthorized combination or
        utilization by Buyer of any Software or (2) the unauthorized
        modification of any Software by Buyer; (3) any Software manufactured by
        ScanSoft to Buyer's specifications; (4) the production of images in
        violation of the proprietary rights of third parties.

        9.2.1   If ScanSoft is named as a party in any suit commenced on a claim
                under the circumstances set forth in Section 9.2, Buyer shall
                defend such suit, and ScanSoft shall assist Buyer (at Buyer's
                expense) in any reasonable manner. Buyer shall have sole control
                over the defense and all settlement negotiations.

10.0    GENERAL INDEMNITY

        Each party (the "indemnifying party") agrees, if promptly notified by
        the other and given the right to control the defense and approve any
        settlements thereof, to indemnify and hold harmless the other party
        hereto (the "indemnified party") from and against all claims or
        liabilities of third parties arising out of this Agreement and (1)
        attributable to personal injury (including death) or damage to tangible
        property and (2) proximately caused by the intentional, reckless, or
        negligent act or omission of the indemnifying party. Such
        indemnification shall include the payment of reasonable attorneys' fees
        and other costs incurred by the indemnified party in defending against
        such claims. The indemnifying party shall have no liability under the
        foregoing indemnity for incidental, consequential, indirect, or special
        damages, including but not limited to loss of profits.


11.0    LIMITATION OF REMEDIES

        THE MAXIMUM LIABILITY OF SCANSOFT TO BUYER, ITS EMPLOYEES, RESELLERS,
        AGENTS AND END-USERS, OR ANY OTHER PERSON CLAIMING UNDER BUYER FOR
        DIRECT DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT, WHETHER
        SUCH LIABILITY ARISES FROM ANY CLAIM BASED UPON CONTRACT, WARRANTY, TORT
        OR OTHERWISE, SHALL IN NO EVENT EXCEED THE TOTAL AMOUNT PAID TO SCANSOFT
        BY BUYER FOR THE SOFTWARE GIVING RISE TO THE CLAIM. IN NO EVENT SHALL
        SCANSOFT BE LIABLE FOR LOST PROFITS, ANY SPECIAL, INDIRECT, INCIDENTAL
        OR CONSEQUENTIAL DAMAGES IN ANY WAY ARISING OUT OF OR RELATING TO THIS
        AGREEMENT, EVEN IN THE EVENT SCANSOFT HAS BEEN ADVISED AS TO THE
        POSSIBILITY OF SUCH DAMAGES.



<PAGE>   6

12.0    CONFIDENTIAL INFORMATION

12.1    CONFIDENTIALITY. Subject to Section 12.2 below, all ScanSoft information
        which is marked proprietary, confidential or "ScanSoft or Xerox private
        data" and is made available to Buyer will be held in confidence by Buyer
        and will not be disclosed by it to third parties, or used by it, except
        to the extent authorized by this Agreement. If the information is
        provided orally or visually, ScanSoft will identify the disclosure as
        being proprietary or confidential at the time of disclosure and, within
        thirty (30) days thereafter, reduce it to writing and provide it to
        Buyer. Buyer may release such confidential information within its own
        organization on a need-to-know basis only. Buyer's obligations under
        this section shall survive the termination or expiration of this
        Agreement.

12.2    EXCEPTIONS. Buyer's obligation hereof shall terminate with respect to
        any particular portion of the ScanSoft information, other than software
        source code, (i) when Buyer can document that:

        (a)     it was in the public domain at the time of ScanSoft's
                communication thereof to Buyer,

        (b)     it entered the public domain through no fault of Buyer
                subsequent to the time of ScanSoft communication thereof to
                Buyer,

        (c)     it was in Buyer's possession free of any obligation of
                confidence at the time of ScanSoft's communication thereof to
                Buyer, or

        (d)     it was rightfully communicated to Buyer free of any obligation
                of confidence subsequent to the time of ScanSoft' communication
                thereof to Buyer;

        (e)     it was developed by employees or agents of Buyer independently
                of and without reference to any ScanSoft information or other
                information that ScanSoft has disclosed in confidence to any
                third party;

        or (ii) when it is communicated by ScanSoft to a third party free of any
        obligation of confidence.

12.3    All materials furnished to Buyer by ScanSoft that are designated in
        writing to be the property of ScanSoft shall remain the property of
        ScanSoft and shall be returned to ScanSoft promptly at its request or
        upon the termination or expiration of this Agreement, with all copies
        made thereof.

12.4    All software object code delivered under this Agreement, whether marked
        to indicate confidentiality or not, shall be deemed confidential
        information. Reverse engineering, disassembly or reverse translation of
        the object code is not permitted. Further, reverse engineering,
        disassembly or reverse translation of the object code by Buyer, its
        employees or agents does not constitute independent development under
        Section 12.2(e).

13.0    TERM AND TERMINATION

13.1    TERM AND RENEWAL. This Agreement is effective upon the date of execution
        by ScanSoft and Buyer. Subject to the termination provisions set forth
        in this Agreement, the initial term shall run through December 31 of the
        first full calendar year following the Agreement execution date. This
        Agreement may be renewed for successive one-year periods by mutual
        consent of the parties. Silence shall be interpreted as consent to
        renew.

13.2    NONRENEWAL. Either party may decline to renew this Agreement at its sole
        discretion by written notification to the other party at least ninety
        (90) days prior to the effective date of expiration.

13.3    TERMINATION FOR BUSINESS REASONS. Either party may terminate this
        Agreement based upon its own business reasons and objectives
        notwithstanding that the other party is not then in default of its
        obligations hereunder. In this circumstance, the termination party shall
        give the other party written notice of termination at least ninety (90)
        days in advance.

13.4    TERMINATION FOR BREACH. Either party may terminate this Agreement if a
        breach (other than one under Section 13.5 below) by the other party
        remains uncured thirty (30) days after written notice of such breach.


<PAGE>   7

13.5    BREACHES PROVIDING GROUNDS FOR IMMEDIATE TERMINATION. ScanSoft shall
        have the right to immediately terminate this Agreement if Buyer breaches
        the provisions of this Agreement regarding: (1) ScanSoft confidential
        information; (2) the unauthorized license or marketing of ScanSoft
        Software, or (3) the assignment by Buyer of any rights under this
        Agreement.

14.0    EFFECT OF TERMINATION

14.1    Termination or nonrenewal by either party shall not relieve the other
        party of its obligation to make any and all payments due under this
        Agreement. All monies due to ScanSoft from Buyer shall become
        immediately due and payable upon any termination.

14.2    Termination or nonrenewal shall not relieve either party of obligations
        incurred prior to termination or expiration or of obligations which by
        their nature or term survive termination or expiration.

14.3    Upon termination or expiration, Buyer shall (1) immediately stop
        production and distribution of the Software (2) cease using the name
        "ScanSoft, Inc." or "ScanSoft" and any Marks; (3) inform ScanSoft of all
        technical, advertising, promotional, and marketing materials, and all
        confidential ScanSoft information, that were supplied to Buyer by
        ScanSoft and that then remain in Buyer's possession and return that
        portion of these materials that is requested by ScanSoft in writing; and
        (4) take appropriate steps to remove or correct all materials that
        identify Buyer as a OEM licensor of ScanSoft Software.

        14.3.1  Upon termination or expiration, Buyer shall destroy any ScanSoft
                software contained in all types of computer memory and all
                relevant materials and shall so warrant in writing to ScanSoft
                within thirty (30) days of termination or expiration, except
                that Buyer may retain one (1) copy of the Software only for the
                purposes of providing its customers with ongoing support. Buyer
                may distribute any paid-for Software in its possession after
                termination or expiration.

15.0    GENERAL

15.1    NOTICES. All notices or demands required under this Agreement shall be
        in writing and made by personal service, sent via certified mail return
        receipt requested, by electronic mail via the Xerox intranet or by
        facsimile with confirmation of transmission to the address of the
        receiving party as set forth in this Agreement (or such different
        address as either party may designate by notifying the other party in
        writing).

15.2    ASSIGNMENT. Buyer shall not assign, transfer, or sell any of its rights,
        or delegate any of its responsibilities under this Agreement without
        ScanSoft's prior written consent. ScanSoft may assign this Agreement
        only to a third party in connection with a merger, consolidation or
        joint venture, or to a third party upon a sale or transfer of
        substantially all of ScanSoft's business assets or substantially all of
        the assets of a division or group responsible for the Software.

15.3    GOVERNING LAW. This Agreement shall be interpreted in accordance with
        the laws of the Commonwealth of Massachusetts.

15.4    DISPUTES. The parties will first endeavor to informally resolve all
        disputes between them prior to resorting to arbitration under this
        Section. In any event that the parties are unable to informally resolve
        any material dispute, it will be submitted to a Senior Xerox Executive
        who has operational management responsibility for both ScanSoft and
        Buyer.

15.5    NO IMPLIED WAIVERS. 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.

15.6    SEVERABILITY. A judicial determination that any provision of this
        Agreement is invalid in whole or part shall not affect the
        enforceability of other provisions.


<PAGE>   8

15.7    EXPORT CONTROL. Buyer shall not export any Software or technical data
        obtained from ScanSoft hereunder to any country for which the United
        States of America or any agency thereof requires, at the time of export,
        an export license or any other governmental approval without first
        obtaining such license or approval.

15.8    ENTIRE AGREEMENT. This Agreement, along with those documents
        incorporated by reference, constitute the entire agreement between the
        parties concerning the subject matter hereof, superseding all previous
        agreements, proposals, representations, or understandings, whether oral
        or written. Modifications of this Agreement must be in writing and
        signed by authorized representatives of both parties.


IN WITNESS WHEREOF, the parties have executed this Agreement on the dates shown
below.



SCANSOFT, INC.                              BUYER: XEROX CORP. - CHANNELS GROUP


By:      /s/ Wayne Crandall                 By:      /s/ Susan Byrd
         --------------------------                  -------------------------
Name:    Wayne Crandall                     Name:    Susan Byrd
         --------------------------                  -------------------------
Title:   V.P. Sales                         Title:   V.P.G.M.
         --------------------------                  -------------------------
Date:    June 29, 1998                      Date:    June 24, 1998
         --------------------------                  -------------------------


Address: 9 Centennial Drive                 Address:
         --------------------------                  -------------------------
         Peabody, MA  01960
         --------------------------                  -------------------------
         USA
         --------------------------                  -------------------------


Phone:   508-977-2000                       Phone:   716-264-2558
         --------------------------                  -------------------------
Fax:     508-977-2425                       Fax:     716-383-9320
         --------------------------                  -------------------------





<PAGE>   9
                                    SCANSOFT
                          GOLD DISK BUNDLING AGREEMENT

                                    EXHIBIT A
                              SOFTWARE AND PRICING



PREPAID ROYALTIES:

        Upon the execution of this Agreement, Buyer shall pay to ScanSoft a
        non-refundable advance in the amount of $100,000.00, as prepaid
        royalties according to the Royalty Schedule set forth below.



ROYALTY SCHEDULE:

        Buyer shall pay a per-copy royalty on each copy of the Software made by
        Buyer according to the following schedule:


<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
                                                                                 UNIT FEE
          SOFTWARE                    PLATFORM          ANNUAL QUANTITY            ($US)
- -----------------------------------------------------------------------------------------
<S>                                    <C>             <C>                        <C>
 Pagis SE/TextBridge Pro 3.0             PC            1-25,000 units              $ 4.00
 Pagis SE/TextBridge Pro 3.0             PC            25,001+ units               $ 3.75

           Pagis PRO                                         N/A                   $17.00
- -----------------------------------------------------------------------------------------
</TABLE>


                           QUARTERLY PAYMENT SCHEDULE:

        Buyer shall provide to ScanSoft within fifteen (15) days after the end
        of each calendar quarter a detailed statement setting forth the number
        of units of the Bundled Solutions on or in which copies of the Software
        were incorporated (regardless of whether any unit of Bundled Solution is
        actually placed into use) during the previously completed calendar
        quarter. This statement must be accompanied by payment in full of the
        fees shown above. Buyer shall use its best efforts to meet the Expected
        Quantity listed above.




PLEASE REMIT PAYMENT FOR INVOICES TO:      OR FOR PAYMENT VIA ELECTRONIC
                                           FUNDS TRANSFER TO:

ScanSoft, Inc.                             ScanSoft, Inc.
Attn:  Accounts Receivable                 C/O Bank of Boston
9 Centennial Drive                         100 Federal Street
Peabody, MA 01960  USA                     Boston, MA 02110  USA
                                           Account Number:    522-89765





<PAGE>   10

                                    SCANSOFT
                          GOLD DISK BUNDLING AGREEMENT

                                    EXHIBIT B
                                BUYER'S PRODUCTS




BUYER'S PRODUCT:


DESCRIPTION:



EXPECTED FCS:






<PAGE>   11

                                    SCANSOFT
                          GOLD DISK BUNDLING AGREEMENT
                                    EXHIBIT C
                  STANDARD END-USER SOFTWARE LICENSE AGREEMENT

                                 SCANSOFT, INC.
                               A SCANSOFT COMPANY

                           END-USER LICENSE AGREEMENT



THE SOFTWARE IS LICENSED, NOT SOLD, AND AVAILABLE FOR USE ONLY UNDER THE TERMS
OF THIS LICENSE AGREEMENT. PLEASE READ THIS AGREEMENT CAREFULLY. BY INSTALLING,
COPYING, OR OTHERWISE USING THE SOFTWARE, YOU AGREE TO BE BOUND BY THE TERMS AND
CONDITIONS OF THIS AGREEMENT.


This ScanSoft, Inc. ("SCANSOFT") End User License Agreement accompanies a
ScanSoft software product and related explanatory written materials
("SOFTWARE"). The term "Software" shall also include any modified versions or
updates of the Software licensed to you by ScanSoft, but does not include source
code for the ScanSoft software product. This copy of the Software is licensed to
you as the end user.

1.      LICENSE GRANT. Provided that you agree to the following terms and
        conditions, ScanSoft grants to you a nonexclusive license to:

        Install and use one copy of the Software on a single computer;

        Store or install a copy of the Software on a storage device such as a
        network server, used only to install or run the Software on your other
        computers over an internal network, however, you must acquire and
        dedicate a license for each separate computer on which the Software is
        installed or run from the storage device. A license for the Software may
        not be shared or used concurrently on different computers; and

        Make a single copy of the Software solely for archival purposes.

        MULTIPLE LICENSE PACK. If you have paid for a Multiple License Pack, you
        may make additional copies of the Software up to the number of licenses
        purchased, and you may use each copy in the manner specified above.

2.      TERMINATION. Without prejudice to any other rights, ScanSoft may
        terminate this Agreement if you fail to comply with the terms and
        conditions of this Agreement. In such event, you must destroy all copies
        of the Software.

3.      RENT/TRANSFER. You may not rent, lease, or sublicense the Software. You
        may, however, transfer all your rights to use the Software to another
        person or entity, provided (1) the third party receives a copy of this
        Agreement and agrees to be bound by its terms and conditions, and (2)
        you erase or destroy all other copies of the Software, (3) you at all
        times comply with all applicable United States export control laws and
        regulations, and (4) if the Software is an upgrade, any transfer must
        include all prior versions of the Software.

4.      COPYRIGHT. The Software is owned by ScanSoft and its suppliers, and the
        Software structure, organization and code are the valuable assets of
        ScanSoft and its suppliers. The Software is also protected by United
        States Copyright Law (Title 17, U.S. Code) and certain International
        Treaty provisions. You agree not to modify, adapt, translate, reverse
        engineer, decompile, disassemble or otherwise attempt to discover the
        source code of the Software. Except as stated in Section 1 above, this
        Agreement does not grant you any intellectual property rights in the
        Software. Therefore, you must treat the Software like any other
        copyrighted material. You may not copy the printed materials
        accompanying the Software.

5.      NO WARRANTY. The Software is being delivered to you "AS IS". SCANSOFT
        AND ITS SUPPLIERS DO NOT AND CANNOT WARRANT THE PERFORMANCE OR RESULTS
        YOU MAY OBTAIN BY USING THE SOFTWARE OR DOCUMENTATION. SCANSOFT AND ITS
        SUPPLIERS MAKE NO WARRANTIES, EXPRESS OR IMPLIED, AS TO NONINFRINGEMENT
        OF THIRD PARTY RIGHTS, MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR
        PURPOSE. IN NO EVENT WILL SCANSOFT OR ITS SUPPLIERS BE LIABLE TO YOU FOR
        ANY CONSEQUENTIAL, INCIDENTAL OR SPECIAL DAMAGES, INCLUDING ANY LOST
        PROFITS OR LOST SAVINGS, EVEN IF A SCANSOFT REPRESENTATIVE HAS BEEN
        ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY ANY
        THIRD PARTY. Some states or jurisdictions do not allow the exclusion or
        limitation of incidental, consequential or special damages, or the
        exclusion of implied warranties or limitations on how long an implied
        warranty may last, so the above limitations may not apply to you.

6.      GOVERNING LAW AND GENERAL PROVISIONS. This Agreement will be governed by
        the laws of the State of Massachusetts U.S.A., excluding the application
        of its conflicts of law rules. This Agreement will not be governed by
        the United Nations Convention on Contracts for the International Sale of
        Goods, the application of which is expressly excluded. If any part of
        this Agreement is found void and unenforceable, it will not affect the
        validity of the balance of the Agreement, which shall remain valid and
        enforceable according to its terms. You agree that the Software will not
        be shipped, transferred or exported into any country or used in any
        manner prohibited by the United States Export Administration Act or any
        other export laws, restrictions or regulations. This Agreement shall
        automatically terminate upon failure by you to comply with its terms.
        This Agreement may only be modified in writing signed by an authorized
        officer of ScanSoft.

7.      U.S. GOVERNMENT RESTRICTED RIGHTS. The Software and documentation are
        provided with RESTRICTED RIGHTS. If this product is acquired under the
        terms of a: GSA contract- Use, reproduction or disclosure is subject to
        the restrictions set forth in the applicable ADP Schedule contract; DoD
        contract- Use, duplication or disclosure by the Government is subject to
        restrictions as set forth in subparagraph (c) (1) (ii) of 252.227-7013;
        Civilian agency contract- Use, reproduction, or disclosure is subject to
        52.227-19 (a) through (d) and restrictions set forth in the accompanying
        end user agreement. Unpublished-rights reserved under the copyright laws
        of the United States.

        ScanSoft, Inc., 9 Centennial Drive, Peabody, MA 01960 USA ScanSoft, ,
        TextBridge and Pagis are trademarks of either ScanSoft, Inc. or Xerox
        Corporation and may be registered in certain jurisdictions. (c) 1997
        ScanSoft, Inc. All rights reserved. 0697-td-license\scansoft_lics1.



<PAGE>   12


                                    SCANSOFT
                          GOLD DISK BUNDLING AGREEMENT

                                    EXHIBIT D
                 LABEL INFORMATION & MATERIALS SPECIFICATIONS FOR CD VERSION

                                (TO BE PROVIDED)





<PAGE>   13

                                    SCANSOFT
                          GOLD DISK BUNDLING AGREEMENT

                                    EXHIBIT E
                              LOGO USAGE GUIDELINES

                                (TO BE PROVIDED)



<PAGE>   14

                                    SCANSOFT
                          GOLD DISK BUNDLING AGREEMENT

                                    EXHIBIT F
                           TRADEMARK USAGE GUIDELINES






The following footnote should appear on all material which bear ScanSoft
Trademarks. Pagis(TM) is a Trademark of the ScanSoft Corporation.




<PAGE>   15
                                  AMENDMENT #1
                                     TO THE
             GOLD DISK BUNDLING AGREEMENT: PAGIS(TM) SE & PAGIS PRO



AMENDMENT NO. 1 to the GOLD DISK BUNDLING AGREEMENT: PAGIS(TM) SE & PAGIS PRO
("THE Agreement"), dated, July 10, 1997 between Xerox Corporation through its
Channels Group ("XEROX"), having offices at East Rochester, New York, and
SCANSOFT, INC. ("SCANSOFT"), having offices at 9 Centennial Drive, Peabody, MA,
01960. Terms not otherwise defined herein are used herein as defined in the GOLD
DISK BUNDLING AGREEMENT: PAGIS (TM) SE & PAGIS PRO.

WHEREAS, ScanSoft and Xerox desire to provide certain modification to the
Agreement. NOW, THEREFORE, in consideration of the foregoing and the mutual
promises hereinafter set forth, the parties hereto agree as follows:

1.0     PREMISES. ScanSoft and Xerox agree to incorporate into the Agreement the
        addition of new licensed software (TextBridge Pro 98) and its
        corresponding royalty schedule listed below. The TextBridge Pro 98
        software shall be bound by the same terms and conditions and will be
        collectively referred to as the ("SOFTWARE") in both the Agreement and
        this Amendment unless specifically called out. Xerox may bundle
        TextBridge Pro with any Xerox's scanners models.

2.0     TERM. This Amendment is effective upon the date of execution by ScanSoft
        and Xerox. The term covered by License Grant in this Amendment shall be
        consistent with, and subject to, the Term and Termination provisions
        outlined in the Agreement.

3.0     LICENSE GRANT. During the term of this Amendment, ScanSoft hereby grants
        to Xerox, under ScanSoft's applicable patents, copyrights and other
        intellectual property rights, a nonexclusive worldwide license to use
        the Software and reproduce copies in object code format only, onto the
        media upon which a Product is distributed and to distribute such copy
        within the Products sold, leased and/or licensed by Xerox.

4.0     ROYALTY FEES. Prepaid Royalties: In consideration of the above License
        Grant and upon the execution of this Amendment, Xerox shall pay to
        ScanSoft a non-refundable advance in the amount of $300,000.00, for
        50,000 units, as prepaid royalties according to the Royalty Schedule set
        forth below.

ROYALTY SCHEDULE:

        Xerox shall pay a per-copy royalty on each copy of the Software made by
        Xerox according to the following schedule:


<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
                                                         EXPECTED ANNUAL           UNIT FEE
              SOFTWARE                 PLATFORM             QUANTITY                 ($US)
- -------------------------------------------------------------------------------------------
<S>                                     <C>                  <C>                  <C>
          TextBridge Pro 98               PC                  50,000               $   6.00
- -------------------------------------------------------------------------------------------
</TABLE>


Except as specified herein, the Agreement shall remain as stated. In the event
of a conflict between the terms and conditions of the Agreement and this
Amendment, the Amendment shall control.

IN WITNESS WHEREOF, duly authorized representatives of ScanSoft and Xerox have
executed this Amendment.



SCANSOFT, INC.                                  XEROX  CORPORATION

By:    /s/ Wayne Crandall                       By:    /s/ Susan Byrd
       -------------------------                       ------------------------
Name:  Wayne Crandall                           Name:  Susan Byrd
       -------------------------                       ------------------------
Title: Vice President                           Title: V.P./G.M.
       -------------------------                       ------------------------
Date:  October 23, 1998                         Date:  October 22, 1998
       -------------------------                       ------------------------



<PAGE>   16

                                  AMENDMENT #2
                                     TO THE
             GOLD DISK BUNDLING AGREEMENT: PAGIS(TM) SE & PAGIS PRO



AMENDMENT NO. 2 to the GOLD DISK BUNDLING AGREEMENT: PAGIS(TM) SE & PAGIS PRO
("THE Agreement"), dated, July 10, 1997 between Xerox Corporation through its
Channels Group ("XEROX"), having offices at East Rochester, New York, and
SCANSOFT, INC. ("SCANSOFT"), having offices at 9 Centennial Drive, Peabody, MA,
01960. Terms not otherwise defined herein are used herein as defined in the GOLD
DISK BUNDLING AGREEMENT: PAGIS (TM) SE & PAGIS PRO.

WHEREAS, ScanSoft and Xerox desire to provide certain modification to the
Agreement and Amendment No. 1 dated October 23, 1998. NOW, THEREFORE, in
consideration of the foregoing and the mutual promises hereinafter set forth,
the parties hereto agree as follows:

1.0     PREMISES. ScanSoft and Xerox agree to incorporate into the Agreement the
        addition of new Xerox Products and their corresponding royalty schedule
        listed below. For purposes of this Amendment, ("PRODUCTS") shall be
        specifically defined as the Xerox models XI 70C, XI 72C. Xerox may add
        other hardware devise models to the Products listed upon prior written
        notice to ScanSoft.

2.0     TERM. This Amendment is effective upon the date of execution by ScanSoft
        and Xerox. The term covered by License Grant in this Amendment shall be
        consistent with, and subject to, the Term and Termination provisions
        outlined in the Agreement.

3.0     LICENSE GRANT. During the term of this Amendment, ScanSoft hereby grants
        to Xerox, under ScanSoft's applicable patents, copyrights and other
        intellectual property rights, a nonexclusive worldwide license to use
        the Software and reproduce copies in object code format only, onto the
        media upon which a Product is distributed and to distribute such copy
        within the Products sold, leased and/or licensed by Xerox.

4.0     ROYALTY FEES. In consideration of the above License Grant and upon the
        execution of this Amendment, Xerox shall pay to ScanSoft a
        non-refundable advance in the amount of $62,500.00, as prepaid royalties
        according to the Royalty Schedule set forth below.


ROYALTY SCHEDULE:
        Xerox shall pay a per-copy royalty on each copy of the Software made by
        Xerox according to the following schedule:

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
                                                         EXPECTED ANNUAL           UNIT FEE
              SOFTWARE                 PLATFORM             QUANTITY                 ($US)
- -------------------------------------------------------------------------------------------
<S>                                     <C>                  <C>                  <C>

Pagis Pro 2.0 and TextBridge Pro         PC                 50,000                 $   5.00
3.0 for Win 3.x users
(see detail below)
- -------------------------------------------------------------------------------------------
</TABLE>


SOFTWARE DESCRIPTION:  CD #1 shall contain: TextBridge Pro 3.0 English US and
                       BEFIGS for Windows 3.x and Pagis Pro 2.0 English US and
                       BEFIGS Windows 95, NT and 98.

                       CD # 2 shall contain: MGI Lite Content

                       CD # 3 - # 8 (6 CD's total) shall contain: MGI Full
                       Content in BEFIGS (1 CD per localized language.


DELIVERY:              ScanSoft shall deliver the gold master 30 days from the
                       date ScanSoft receives the final TWAIN Driver and the
                       XI70C device from Xerox

PAYMENT TERMS:         Net 45



<PAGE>   17

NOTE: Unit Fee royalty rates stated above are applicable to the specific product
models listed in section 1.0. For all other models the royalty shall remain as
stated in the Agreement.


Except as specified herein, the Agreement shall remain as stated. In the event
of a conflict between the terms and conditions of the Agreement or Amendment No.
1 and this Amendment, this Amendment (Amendment No. 2) shall control.

IN WITNESS WHEREOF, duly authorized representatives of ScanSoft and Xerox have
executed this Amendment.


SCANSOFT, INC.                                  XEROX  CORPORATION

By:    /s/ Wayne Crandall                       By:    /s/ George Herbert
       -------------------------                       ------------------------
Name:  Wayne Crandall                           Name:  George D. Herbert
       -------------------------                       ------------------------
Title: V.P. Sales                               Title: V.P./G.M.
       -------------------------                       ------------------------
Date:  December 22, 1998                        Date:  December 22, 1998
       -------------------------                       ------------------------





<PAGE>   18

                                  AMENDMENT #3
                                     TO THE
             GOLD DISK BUNDLING AGREEMENT: PAGIS(TM) SE & PAGIS PRO



AMENDMENT NO. 3 to the GOLD DISK BUNDLING AGREEMENT: PAGIS(TM) SE & PAGIS PRO
("THE Agreement"), dated, July 10, 1997 between Xerox Corporation through its
Channels Group ("XEROX"), having offices at East Rochester, New York, and
SCANSOFT, INC. ("SCANSOFT"), having offices at 9 Centennial Drive, Peabody, MA,
01960. Terms not otherwise defined herein are used herein as defined in the GOLD
DISK BUNDLING AGREEMENT: PAGIS (TM) SE & PAGIS PRO.

WHEREAS, ScanSoft and Xerox desire to provide certain modification to the
Agreement, Amendment No. 1 dated October 23, 1998, Amendment No. 2 dated
December 22, 1998. NOW, THEREFORE, in consideration of the foregoing and the
mutual promises hereinafter set forth, the parties hereto agree as follows:

1.0     PREMISES. ScanSoft and Xerox agree to incorporate into the Agreement the
        addition of new Xerox Products and their corresponding royalty schedule
        listed below. For purposes of this Amendment, ("PRODUCTS") shall be
        specifically defined as the Xerox model: 480 CX. Xerox may add other
        hardware devise models to the Products listed upon prior written notice
        to ScanSoft.

2.0     TERM. This Amendment is effective upon the date of execution by ScanSoft
        and Xerox. The term covered by License Grant in this Amendment shall be
        consistent with, and subject to, the Term and Termination provisions
        outlined in the Agreement.

3.0     LICENSE GRANT. During the term of this Amendment, ScanSoft hereby grants
        to Xerox, under ScanSoft's applicable patents, copyrights and other
        intellectual property rights, a nonexclusive worldwide license to use
        the Software and reproduce copies in object code format only, onto the
        media upon which a Product is distributed and to distribute such copy
        within the Products sold, leased and/or licensed by Xerox.

4.0     ROYALTY FEES. In consideration of the above License Grant and upon the
        execution of this Amendment, Xerox shall pay to ScanSoft a
        non-refundable advance in the amount of $75,000.00, as prepaid royalties
        according to the Royalty Schedule set forth below.


ROYALTY SCHEDULE:
        Xerox shall pay a per-copy royalty on each copy of the Software made by
        Xerox according to the following schedule:

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
                                                         EXPECTED ANNUAL           UNIT FEE
              SOFTWARE                 PLATFORM             QUANTITY                 ($US)
- -------------------------------------------------------------------------------------------
<S>                                     <C>                  <C>                  <C>
Pagis Pro 2.0 and TextBridge Pro          PC                 60,000                $   5.00
3.0 for Win 3.x users
(see detail below)
- -------------------------------------------------------------------------------------------
</TABLE>


SOFTWARE DESCRIPTION:  CD #1 shall contain: TextBridge Pro 3.0 English US and
                       BEFIGS for Windows 3.x and Pagis Pro 2.0 English US and
                       BEFIGS Windows 95, NT and 98.

                       CD # 2 shall contain: MGI Lite Content

                       CD # 3 - # 8 (6 CD's total) shall contain: MGI Full
                       Content in BEFIGS (1 CD per localized language.

DELIVERY:              February 15, 1999

PAYMENT TERMS:         Net 45


NOTE: Unit Fee royalty rates stated above are applicable to the specific product
models listed in section 1.0. For all other models the royalty shall remain as
stated in the Agreement.

<PAGE>   19

Except as specified herein, the Agreement shall remain as stated. In the event
of a conflict between the terms and conditions of the Agreement, Amendment No. 1
or Amendment No. 2 and this Amendment, then this Amendment (Amendment No. 3)
shall control.

IN WITNESS WHEREOF, duly authorized representatives of ScanSoft and Xerox have
executed this Amendment.


SCANSOFT, INC.                                  XEROX  CORPORATION

By:    /s/ Wayne Crandall                       By:    /s/ Susan Byrd
       -------------------------                       ------------------------
Name:  Wayne Crandall                           Name:  Susan Byrd
       -------------------------                       ------------------------
Title: V.P. Sales                               Title:
       -------------------------                       ------------------------
Date:  January 5, 1998                          Date:  December 18, 1998
       -------------------------                       ------------------------




<PAGE>   20

                                  AMENDMENT #4
                                     TO THE
             GOLD DISK BUNDLING AGREEMENT: PAGIS(TM) SE & PAGIS PRO



AMENDMENT NO. 4 to the GOLD DISK BUNDLING AGREEMENT: PAGIS(TM) SE & PAGIS PRO
("THE Agreement"), dated, July 10, 1997 between Xerox Corporation through its
Channels Group ("XEROX"), having offices at East Rochester, New York, and
SCANSOFT, INC. ("SCANSOFT"), having offices at 9 Centennial Drive, Peabody, MA,
01960. Terms not otherwise defined herein are used herein as defined in the GOLD
DISK BUNDLING AGREEMENT: PAGIS (TM) SE & PAGIS PRO.

WHEREAS, ScanSoft and Xerox desire to provide certain modification to the
Agreement, Amendment No. 1 dated October 23, 1998, Amendment No. 2 dated
December 22, 1998, and Amendment No.3 dated January 5, 1999. NOW, THEREFORE, in
consideration of the foregoing and the mutual promises hereinafter set forth,
the parties hereto agree as follows:

1.0     PREMISES. ScanSoft and Xerox agree to incorporate into the Agreement the
        addition of new ScanSoft licensed Software (TextBridge API as an
        integrated component of WordCraft's Fax software) and its corresponding
        royalty schedule listed below. For purposes of this Amendment,
        ("PRODUCTS") shall be specifically defined as the Xerox model: WC 385.
        Xerox may add other hardware devise models to the Products listed upon
        prior written notice to ScanSoft. Xerox may not license the TextBridge
        API except as integrated component of WordCraft's Fax software combined
        with the Product.

2.0     TERM. This Amendment is effective upon the date of execution by ScanSoft
        and Xerox. The term covered by License Grant in this Amendment shall be
        consistent with, and subject to, the Term and Termination provisions
        outlined in the Agreement.

3.0     LICENSE GRANT. During the term of this Amendment, ScanSoft hereby grants
        to Xerox, under ScanSoft's applicable patents, copyrights and other
        intellectual property rights, a nonexclusive worldwide license to use
        the Software and reproduce copies in object code format only, onto the
        media upon which a Product is distributed and to distribute such copy
        within the Products sold, leased and/or licensed by Xerox.

4.0     ROYALTY FEES. In consideration of the above License Grant and upon the
        execution of this Amendment, Xerox shall pay to ScanSoft a
        non-refundable advance in the amount of $5,000.00, as prepaid royalties
        according to the Royalty Schedule set forth below.

ROYALTY SCHEDULE:

        Xerox shall pay a per-copy royalty on each copy of the Software made by
        Xerox according to the following schedule:

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
                                                         EXPECTED ANNUAL           UNIT FEE
              SOFTWARE                 PLATFORM             QUANTITY                 ($US)
- -------------------------------------------------------------------------------------------
<S>                                     <C>                  <C>                  <C>
TextBridge API as provided               PC                  50,000               $   0.40
within the WordCraft Fax
Software Application
- -------------------------------------------------------------------------------------------
</TABLE>


PAYMENT TERMS:       Net 45


Except as specified herein, the Agreement shall remain as stated. In the event
of a conflict between the terms and conditions of the Agreement, Amendment No.
1, Amendment No. 2 and Amendment No. 3 and this Amendment, then this Amendment
(Amendment No. 4) shall control.

IN WITNESS WHEREOF, duly authorized representatives of ScanSoft and Xerox have
executed this Amendment.



SCANSOFT, INC.                                  XEROX  CORPORATION

By:    /s/ Wayne Crandall                       By:    /s/ Susan P. Byrd
       -------------------------                       ------------------------
Name:  Wayne Crandall                           Name:  Susan P. Byrd
       -------------------------                       ------------------------
Title: Vice President Sales                     Title: VPMG, XCG
       -------------------------                       ------------------------
Date:  January 12, 1999                         Date:  January 12, 1999
       -------------------------                       ------------------------



<PAGE>   1
                                                                   EXHIBIT 10.16

                                SCANSOFT - XEROX
                          GOLD DISK BUNDLING AGREEMENT

This Agreement is between XEROX CORPORATION, OFFICE DOCUMENT PRODUCTS GROUP and
such Xerox Affiliates as defined below ("XEROX"), and SCANSOFT, INC.
("SCANSOFT") a Xerox company as agreed in writing to be bound by the terms and
conditions hereof, and shall be effective as of March __, 1998 ("Effective
Date"), upon the terms and conditions set forth below.


1.0     PREMISES & DEFINITIONS

1.1     This Agreement applies only to the ScanSoft-brand software product(s)
        listed in Section 3.2 (referred to collectively as the "SOFTWARE").

1.2     "Xerox Affiliates" shall mean Xerox Canada Inc., Xerox Limited, and Fuji
        Xerox Co. Ltd., and any entity, which is 50% or more, owned directly or
        indirectly by Xerox Corporation or Xerox Limited but shall not include
        ScanSoft, Inc.

1.3     Xerox wishes to acquire a master copy of the Software and its
        documentation on disk (the "GOLD DISK"), to produce copies of the
        Software and its associated documentation, combine such Software with
        multi-function devices ("DOCUMENT CENTRE SYSTEMS" and similar hardware)
        to create "BUNDLED SOLUTIONS" and to distribute such Bundled Solutions
        to Xerox Affiliates, resellers and end users. Xerox shall not distribute
        the Software except as part of the Bundled Solutions.

1.4     A Bundled Solution will include twenty-six (26) Software licenses for
        each Document Centre System sold, twenty-five (25) Software licenses for
        individual users and one (1) license for a server based OCR application.
        Customers that require more than 26 licenses per multi-function device
        installation may order additional copies of Software directly from
        ScanSoft.

2.0     ADDITIONAL RESPONSIBILITIES OF XEROX

2.1     MARKETING. "TextBridge Pro" and/or the ScanSoft Software logo, provided
        to Xerox upon signing of this Agreement, may be displayed in all
        advertising, product literature, and in a conspicuous location on the
        Bundled Solutions packaging. ScanSoft will provide the artwork for the
        logo.

        2.1.1   Xerox agrees to provide ScanSoft with access to all registered
                customers of Xerox' Bundled Solution through the ScanSoft
                software support registration process if a registration process
                is used and database is available

        2.1.2   Xerox shall provide ScanSoft, at no charge, one (1) unit each of
                the Bundled Solutions to be used for support training, QA
                testing and promotional activities.

3.0     ROYALTIES

3.1     The Software shall be licensed at the Bundled Solution license fee set
        forth below. A Bundled Solution license fee is payable to ScanSoft based
        on the calculated number of Bundled Solutions. The parties agree that in
        order to calculate the Bundled Solution royalty payable to ScanSoft,
        Xerox shall not less than quarterly, submit to ScanSoft a statement
        showing the net number of royalty bearing units of Software licensed to
        third parties which shall be calculated by subtracting the number of
        units of Software returned by third parties in conjunction with the
        return of a unit of the multi-function device from the total number of
        units of the Software licensed to a third party during such period.
        Xerox may use a reasonable number of copies for demonstration and
        promotion purposes without paying a license fee. The TextBridge Pro
        component of the Software shall be distributed by Xerox with CentreWare
        4.0, in an earlier version if possible. Xerox may license additional
        units of Software at the Unit License Fee below for customers who


<PAGE>   2

        request additional Software units. Such Software license shall not
        exceed one hundred (100) licenses per sale of each Document Centre
        Systems and/or similar hardware.

3.2     Upon the execution of this Agreement, Xerox shall pay to ScanSoft
        royalties according to the schedule set forth below:

<TABLE>
<CAPTION>
                                                                                        BUNDLED
                                                                                       SOLUTION
           SOFTWARE                                                  UNIT LICENSE     LICENSE FEE
   (FOR 25 USERS + 1 SERVER           PLATFORMS       PRE-PAID           FEE           (EXTENDED
         INSTALLATION)                SUPPORTED       LICENSES          ($US)          SYSTEM FEE)
   ------------------------        --------------     --------       ------------     ------------
<S>                                <C>                <C>            <C>              <C>
 TEXTBRIDGE PRO
 (TEXTBRIDGE PRO FOR WINDOWS          PC-Win95,         None            $5.00           $125.00
   3.1)                            WinNT and Win
 (TEXTBRIDGE PRO 98 FOR WINDOWS         3.11
   95/NT 4.0)
</TABLE>

See ATTACHMENT II - TEXTBRIDGE PRO LANGUAGE SPECIFICATIONS for complete list
of User Interfaces and Recognized Languages supported.

3.3     Xerox shall provide to ScanSoft, within thirty (30) days after the end
        of each calendar quarter, a detailed statement setting forth the net
        number of the Bundled Solutions on which copies of the Software were
        licensed or sublicensed to third parties during the previously completed
        calendar quarter. The statement shall be accompanied by payment in full
        for license fees due to ScanSoft.

4.0     SECOND LEVEL TECHNICAL SUPPORT

4.1     The details of training delivery by ScanSoft and the TextBridge Pro
        training material are listed in Attachment III - TEXTBRIDGE PRO
        TECHNICAL SUPPORT AND TRAINING.

4.2     ScanSoft will provide Second and Third Level Support to Xerox' Customer
        Support, as it may be reasonably requested by Xerox, to fulfill its
        maintenance obligations to its resellers and end users. The details of
        technical support responsibilities of ScanSoft and Xerox are listed in
        Attachment III - TEXTBRIDGE PRO TECHNICAL SUPPORT AND TRAINING.

4.3     If customer problem was determined to be caused by a defect in media,
        Xerox shall issue a replacement media to a customer and Xerox agrees to
        pay for all associated costs incurred by such replacement.

5.0     TITLE

        Title and all rights of ownership to the Software, and all copies of all
        or any part thereof, are and remain with ScanSoft at all times. Xerox
        agrees to place Xerox-ScanSoft's copyright notice (using the
        international copyright symbol) on each copy of Software made by Xerox.

6.0     LICENSE

6.1     LICENSE GRANT. ScanSoft hereby grants to Xerox, under ScanSoft's
        applicable patents, copyrights and other intellectual property rights, a
        perpetual, nonexclusive, worldwide right and license to use, market,
        maintain, reproduce, (in any medium including firmware) translate,
        prepare, display, lease, and sub-license the Software and reproduce
        copies in object code format only, onto the media form contained within
        a Bundled Solution and to distribute such copies with the Bundled
        Solutions sold, leased and/or licensed by Xerox.


<PAGE>   3

6.2     Xerox shall ensure that each copy of the Software is marketed with (1)
        the Software's user documentation, (2) the Software License Agreement,
        and (3) Electronic Warranty Registration Process. Xerox shall adhere to
        ScanSoft's specifications (in Attachment I) for the Software's user
        documentation when manufacturing such documentation. Any deviations from
        such specifications will require advance written approval from ScanSoft.
        ScanSoft may require samples reflecting such deviations for review prior
        to issuing its approval.

6.3     ScanSoft shall ensure compatibly between the Software and Xerox'
        Products. Xerox shall test such Software compatibility in their standard
        end-user configuration. If the Software and Xerox' Products are not
        compatible then Xerox may use the options stated in 7.03 as a remedy.

7.0     WARRANTY AFTER APPROVAL

7.01    The Software provided to Xerox herein is licensed without any
        modification or customization. ScanSoft shall warrant the Gold Disk to
        be free from known viruses and material program defects for a period of
        thirty (30) days from the date of delivery of the master Gold Disk.

7.02    If any material program errors with the Software are discovered by
        Xerox, ScanSoft shall use reasonable efforts to correct such errors at
        no charge to Xerox within a correction period of thirty (30) days
        following receipt of written notice from Xerox of such errors.

7.03    If the program errors of 7.02 cannot be eliminated by ScanSoft in the
        thirty (30) day correction period, 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 Software with an equitable reduction in any Fee as
                materially determined by the parties; or

        (c)     reject the Software by notifying ScanSoft of such in writing and
                promptly returning all Software to ScanSoft with all copies made
                thereof and ScanSoft shall refund the License Fee paid by Xerox
                for such units of Software returned to Xerox by its customers
                within the warranty period stated in section 7.01.

7.04    EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH HEREIN, SCANSOFT 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.

7.05    END-USER WARRANTY. In the event any end user makes a warranty claim
        against ScanSoft or which is outside of the warranty set forth in
        Section 7.01, ScanSoft shall honor such warranty but Xerox shall hold
        ScanSoft harmless from and against such warranty claims and Xerox shall
        pay ScanSoft the actual costs incurred by ScanSoft in honoring such
        warranty claim.

8. 0    TERMINATION

8.01    This Agreement is effective upon the date of execution by ScanSoft and
        Xerox ODPG. Subject to the termination provisions set forth in this
        Agreement, the initial term shall commence on the Effective Date and run
        for an eighteen (18) month period. This Agreement may be renewed for
        successive one-year periods by mutual written consent of the parties.
        Upon termination or expiration, Xerox shall stop production and
        distribution of the Software.

8.02    Either ScanSoft or Xerox may terminate this Agreement by written notice
        of termination to the other party upon a material breach by ScanSoft or
        Xerox which has not been cured within thirty (30) days of written notice
        of such breach. Confidential Obligations (the obligations as to
        Confidential Information) herein shall not be waived and shall survive
        termination.

8.03    BREACHES PROVIDING GROUNDS FOR IMMEDIATE TERMINATION. ScanSoft shall
        have the right to immediately terminate this Agreement if Xerox breaches
        the provisions of this Agreement regarding: (1) ScanSoft confidential
        information; (2) the unauthorized license or marketing of ScanSoft
        Software.

8.04    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 ScanSoft. In the event of termination or upon


<PAGE>   4

        expiration of this Agreement, ScanSoft shall return to Xerox any and all
        documents, materials, work product and all copies made thereof, which
        were obtained by ScanSoft from Xerox.

9.0     EFFECT OF TERMINATION

9.01    Termination or nonrenewal shall not relieve either party of obligations
        incurred prior to termination or expiration or of obligations which by
        their nature or term survive termination or expiration. All monies due
        to ScanSoft from Xerox shall become immediately due and payable upon any
        termination.

9.02    Upon termination or expiration, Xerox shall (1) immediately stop
        production and distribution of the Software and (2) cease using the name
        "ScanSoft" or "TextBridge Pro". Xerox shall destroy any ScanSoft
        software contained in all types of computer memory and all relevant
        materials and shall so warrant in writing to ScanSoft within thirty (30)
        days of termination or expiration, except that Xerox may retain a
        reasonable quantity of the Software only for the purposes of providing
        its customers with ongoing support. Xerox may distribute any paid-for
        Software in its possession after termination or expiration.

9.03    Additionally, each party shall return to the other party any and all
        confidential documents or materials.

10.0    INDEMNIFICATION

10.01   ScanSoft represents and warrants that it has sufficient right, title and
        interest in and to the Software to enter into this Agreement and further
        warrants that it is not aware that 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 Software
        might infringe any patent, copyright or other proprietary right of a
        third party.

10.02   ScanSoft shall defend Xerox and Xerox Affiliates from, and pay any
        judgment for, any claim, action or other proceeding brought against
        Xerox or Xerox Affiliates arising from the use of the Software,
        providing that such Xerox or Xerox Affiliates promptly notifies ScanSoft
        in writing of any action or claim, allows ScanSoft, at ScanSoft's
        expense, to direct the defense, gives ScanSoft full information and
        reasonable assistance required to defend such suit, claim or proceeding,
        at no out-of-pocket expense to Xerox, and allows ScanSoft to pay any
        judgment, provided further that ScanSoft shall have no liability for any
        claim, action or other proceeding based upon acts or omissions by Xerox,
        the combination of the Software with hardware or software not provided
        by ScanSoft if the claim relates to such combination, or for settlements
        or costs incurred without the knowledge of ScanSoft. To avoid
        infringement, ScanSoft may, at its option, and at no charge to Xerox,
        obtain a license or right to continue the use of the Software, or modify
        the Software so it no longer infringes, but is still a functional
        equivalent of the Software, or substitute a functional equivalent of the
        Software. If none of the foregoing are commercially practicable,
        ScanSoft may, as Xerox' remedy under this Section 10.02 accept the
        return of all infringing Software and refund to Xerox all applicable
        License Fees therefore.

10.03   The foregoing indemnity does not apply, and Xerox agrees to indemnify
        ScanSoft (including reasonable costs and attorneys' fees), with respect
        to any claim brought against ScanSoft concerning patent or copyright
        infringement allegedly arising from: (1) the unauthorized combination or
        utilization by Xerox of any Software or (2) the unauthorized
        modification of any Software by Xerox; (3) any Software manufactured by
        ScanSoft to Xerox' specifications; (4) the production of images in
        violation of the proprietary rights of third parties.

11.0    DISCLAIMER

11.01   IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR LOST CONTRACTS
        OR LOST PROFITS OR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL
        DAMAGES IN ANY WAY ARISING OUT OF THE USE OF THE SOFTWARE OR RELATING TO
        THIS AGREEMENT HOWEVER CAUSED UNDER A CLAIM


<PAGE>   5

        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. THIS DISCLAIMER DOES NOT APPLY TO THE AFORESAID
        INDEMNIFICATION.

12.0    FORCE MAJEURE

12.01   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.

13.0    CONFIDENTIAL INFORMATION

13.01   This Agreement supersedes any prior agreement with Office Document
        Products as to the Software (with respect to Confidential Information).

13.02   Each party agrees not to intentionally disclose or intentionally make
        available to any third party information received from the other party
        (hereinafter referred to as "Information" or "Confidential Information")
        in any form without the express written approval of the disclosing
        party.

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

13.04   The obligations on receiving party recited herein shall terminate with
        respect to any particular portion of such Information when and to the
        extent that it is or becomes:

        (a) part of the public domain through no fault of receiving party;

        (b) communicated by disclosing party to a third party free of any
            obligation of confidence;

        (c) independently developed by receiving party with-out any reference
            to the Information;

        (d) known to receiving party free of any obligation of confidence.

13.05   In no event shall the obligation of receiving party with respect to the
        Information extend beyond three (3)years from the date of disclosure.

13.06   Upon request by disclosing party or termination of this Agreement,
        whichever occurs first, receiving party agrees to promptly return the
        Information to the disclosing party.

14.0    ASSIGNMENT

14.01   This Agreement may not be assigned or transferred by either party
        without the prior written approval of the other party; provided that
        ScanSoft 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 equipment business for
        which the Software is then licensed. Further, Xerox' or Xerox
        Affiliates' rights and obligations under this Agreement may be exercised
        and performed in whole or in part by any subsidiary or affiliate of
        Xerox, provided that Xerox shall continue to be responsible to ScanSoft
        for the performance of its obligations under this Agreement. 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.

15.0    MODIFICATION

15.01   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 ScanSoft
        and Xerox.


<PAGE>   6

16.0    BANKRUPTCY OF SCANSOFT OR XEROX

16.01   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.

17.0    COMPLIANCE WITH THE LAW

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

18.0    NONPUBLICITY

18.01   Without prior written consent of the other Party, a party shall not (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.

19.0    CONTROLLING LAW

19.01   This Agreement shall be governed and construed in accordance with the
        laws of the Commonwealth of Massachusetts.

20.0    GENERAL PROVISIONS

20.01   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.

20.02   No Agency. It is agreed and understood that neither Xerox nor ScanSoft
        has any authority to bind the other with respect to any matter
        hereunder. Under no circumstances shall either Xerox or ScanSoft 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.

20.03   Survival. The provisions of this Agreement shall, to the extent
        applicable, survive the expiration or any termination hereof including,
        but without limitation, any perpetual license herein granted.

20.04   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.

20.05   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.

20.06   Entire Agreement. This Agreement constitutes the entire Agreement of the
        parties as to the subject matter hereof and supersedes any and all prior
        oral or written memoranda, understandings and Agreements as to such
        subject matter.

21.0    YEAR 2000 WARRANTY


<PAGE>   7

21.01 ScanSoft represents and warrants that the Software and Third Party
Software delivered under this Agreement is Year 2000 performance compliant and
thus shall be able to accurately process date data (including, but not limited
to, calculating, comparing, and sequencing) from, into, and between the
twentieth and twenty-first centuries, including leap year calculations. The
remedies available to Xerox for breach of this warranty shall include prompt
repair or replacement of any Software and Third Party Software or part thereof
whose non-compliance is discovered and made known to ScanSoft in writing.
Nothing in this warranty shall be construed to limit any rights or other
remedies Xerox may otherwise have under this Agreement with respect to
uncorrected program errors or defects.



IN WITNESS WHEREOF, the parties have executed this Agreement on the dates shown
below.


SCANSOFT, INC.                            XEROX CORPORATION, ODP


By: /s/ Wayne Crandall                    By: /s/ Ray Valukonis
   --------------------------------          -----------------------------------
Name: Wayne Crandall                      Name: Ray Valukonis
     ------------------------------            ---------------------------------
Title: V.P.                               Title: V.P. Finance
      -----------------------------             --------------------------------
Date: March 25, 1998                      Date: March 19, 1998
     ------------------------------            ---------------------------------

Address: 9 Centennial Drive               Address: 200 Canal View Blvd, MS 831
         --------------------------                -----------------------------
         Peabody, MA  01960                        Rochester, NY 14623
         --------------------------                -----------------------------
         USA                                       USA
         --------------------------                -----------------------------

Phone:   978-977-2000                      Phone:
         --------------------------                -----------------------------
Fax:     978-977-2425                      Fax:
         --------------------------                -----------------------------


<PAGE>   8

                                SCANSOFT - XEROX
                          GOLD DISK BUNDLING AGREEMENT

                                  ATTACHMENT I
                     TEXTBRIDGE PRO MATERIALS SPECIFICATIONS

1) TEXTBRIDGE PRO SOFTWARE KIT (CD)

A) SOFTWARE SPECS

FORMAT               CD-ROM
QUANTITY             1
MASTER               Provided as CD-R

B) CD SCREENPRINT ARTWORK

PROCESS              To be printed on each CD
COLOR                Two color (red & black)
ARTWORK              Master artwork provided by MarCom in specified format

C) TEXTBRIDGE CD TRAY INLAY

DESCRIPTION          Includes serial number
PROCESS              To included in rear cover of CD Jewel case
ARTWORK              Master artwork provided by MarCom in specified format
SERIAL NUMBER        Serial number scheme and range to be provided by
                     Manufacturing

D) TEXTBRIDGE CD JEWEL CASE

DESCRIPTION          Standard clear plastic CD Jewel Case with black tray

2) TEXTBRIDGE PRO USER'S GUIDE

A) ELECTRONIC FOR ONLINE MANUAL

MASTER               Provides as PDF file on Master CD-R

A) HARD COPY

i) INTERNAL PAGE SPECIFICATIONS

PAGE SIZE            7.25 x 8.375 inches - double-sided pages per provided
                     masters (except where otherwise specified)
PAGE COUNT           123 pages plus cover (WINDOWS);
STOCK                At least 50 lb. Opaque Smooth Paper (60 lb. preferred)
TYPE COLOR           One-color (Black)
BINDING              Perfectbind or equivalent

ii) COVER PAGE SPECS

COLOR                Two color with Clear Aqueous-based varnish finish
STOCK                10 pt. coated White Carolina Paper
BINDING              Perfect Binding

4) TEXTBRIDGE WARRANTY REGISTRATION CARD

SIZE                 6.875 x 4.875 inches
STOCK                10 pt. Coated
COLOR                Two Color
FINISHING            Scored and folded to finished size 5.5 x 4.25 inches
TYPE                 One-color (Black)
NOTE:                Artwork will be provided as Macintosh PostScript files.


<PAGE>   9

                                SCANSOFT - XEROX
                          GOLD DISK BUNDLING AGREEMENT

                                  ATTACHMENT II

                     TEXTBRIDGE PRO LANGUAGE SPECIFICATIONS

1.) TEXTBRIDGE PRO 3.0 FOR USE WITH MICROSOFT WINDOWS(R) 3.1

NORTH AMERICA/UK Version: Page size default = letter
Interface: English
Recognizes: English, French, German, Italian, and Spanish

FRENCH Version Page size default = A4
Interface: French
Recognizes: Danish, Dutch, English, Finnish, French, German, Italian, Norwegian,
Portuguese, Spanish, Swedish

GERMAN Version Page size default = A4
Interface: German
Recognizes: Danish, Dutch, English, Finnish, French, German, Italian, Norwegian,
Portuguese, Spanish, Swedish

ITALIAN Version Page size default = A4
Interface: Italian
Recognizes: Danish, Dutch, English, Finnish, French, German, Italian, Norwegian,
Portuguese, Spanish, Swedish

SPANISH Version Page size default = A4
Interface: Spanish
Recognizes: Danish, Dutch, English, Finnish, French, German, Italian, Norwegian,
Portuguese, Spanish, Swedish

BRAZILIAN PORTUGUESE Version Page size default = A4
Interface: Brazilian Portuguese
Recognizes: Danish, Dutch, English, Finnish, French, German, Italian, Norwegian,
Portuguese, Spanish, Swedish


2.) TEXTBRIDGE PRO 98 FOR USE WITH MICROSOFT WINDOWS(R) 95 AND NT

NORTH AMERICA/UK VERSION: Page size default = A4
Interface: English
Recognizes: Danish, Dutch, English, Finnish, French, German, Italian, Norwegian,
Portuguese, Spanish, Swedish

FRENCH Version Page size default = A4
Interface: French
Recognizes: Danish, Dutch, English, Finnish, French, German, Italian, Norwegian,
Portuguese, Spanish, Swedish

GERMAN Version Page size default = A4
Interface: German
Recognizes: Danish, Dutch, English, Finnish, French, German, Italian, Norwegian,
Portuguese, Spanish, Swedish


<PAGE>   10

ITALIAN Version Page size default = A4
Interface: Italian
Recognizes: Danish, Dutch, English, Finnish, French, German, Italian, Norwegian,
Portuguese, Spanish, Swedish

SPANISH Version Page size default = A4
Interface: Spanish
Recognizes: Danish, Dutch, English, Finnish, French, German, Italian, Norwegian,
Portuguese, Spanish, Swedish

BRAZILIAN PORTUGUESE Version Page size default = A4
Interface: Brazilian Portuguese
Recognizes: Danish, Dutch, English, Finnish, French, German, Italian, Norwegian,
Portuguese, Spanish, Swedish


<PAGE>   11

                                SCANSOFT - XEROX
                          GOLD DISK BUNDLING AGREEMENT

                                 ATTACHMENT III

                  TEXTBRIDGE PRO TECHNICAL SUPPORT AND TRAINING

1.) PRODUCT SUPPORT BY SCANSOFT AND XEROX

ScanSoft will provide technical support to Xerox' Customer Support, as it may be
reasonably requested by Xerox, to fulfill its maintenance obligations to its
resellers and end users. Technical support shall include telephone support to
Xerox' engineering staff on the operation, integration and utilization of the
Software, and maintenance modifications and bug corrections for the Software to
bring them into conformance with the specifications. There will be no charge to
Xerox for this level of support. When a customer problem is determined by Xerox'
Customer Support to be associated directly with the Software and resolution of
the problem is not within the range of training received or knowledge accrued by
Xerox' Customer Support, Xerox' Customer Support may either, contact ScanSoft's
telephone support for assistance or refer the end user directly to ScanSoft's
Customer Support.

2.) SUPPORT LEVELS

2.1   First Level Support. Cases that can be immediately answered and require no
      callback to the customer. No assistance from Second Level Support is
      required.

2.2   Second Level Support. Cases that involve knowledge of the Software
      program, problem isolation or investigation by technical support
      technicians and may require a callback to the customer. Assistance from
      Third Level Support may be required.

2.3   Third Level Support. Cases that involve detailed knowledge of the Software
      program, problem isolation and investigation by Xerox engineers.
      Assistance and resolution may be required from the other party.

3.) SCANSOFT RESPONSE TO PROBLEMS RANKED BY SEVERITY

3.1   SEVERITY 1 PROBLEMS. Means this Software has a problem, defect or
      malfunction which renders the Software or a major component of the
      Software inoperative. With a Severity l Problem there is a significant and
      on-going interruption to the end user or customers business or there is an
      unrecoverable loss or corruption of data. No circumvention is available.
      ScanSoft agrees to commence an investigation of any "Severity 1 Problems"
      within one (1) business day of notice by Xerox and initiate the
      development of corrections immediately thereafter. ScanSoft shall commit
      commercially reasonable efforts to provide Xerox with a fix, workaround or
      permanent fix within fourteen (14) business days.

3.2   SEVERITY 2 PROBLEMS. Means the Software has a problem, defect or
      malfunction where the Software or a major component or the Software is not
      working or is malfunctioning in a manner which restricts the end user or
      customers use of the Software. ScanSoft agrees to commence an
      investigation of any "Severity 2 Problems" within two (2) business days of
      notice by Xerox and initiate the development of corrections immediately
      thereafter. ScanSoft shall commit commercially reasonable efforts to
      provide Xerox with a fix, workaround or permanent fix within six (6)
      weeks.

3.3   SEVERITY 3 PROBLEMS. Means the Software has a problem. defect or
      malfunction where the Software or a component of the Software is not
      functioning as specified in the documentation and caused a minor impact on
      the end user or customers use of the Software. An acceptable circumvention
      or workaround is available. ScanSoft agrees to commence an investigation
      of any "Severity 3 Problems" within five (5) business days of notice by
      Xerox and shall be corrected in future releases of the Software.

4.) SUPPORT CONTACTS

4.1   ScanSoft and Xerox will provide Warm Transfer (call forwarding)
      capabilities between Xerox Third Level Support and ScanSoft for support in
      the US, Canada and Europe. ScanSoft will make an OEM Hotline telephone
      line available to the same Xerox locations for warm transfer calls. At a
      minimum, this support will be provided by ScanSoft in the US during the
      business hours of 08:30 to 17:30 Eastern Time, Monday through Friday
      (ScanSoft holidays excluded).

4.2   ScanSoft will provide US-based OEM Hotline for calls from Xerox Customer
      Support Centers in Latin and South America during the same business hours
      as above.


<PAGE>   12

4.3   ScanSoft will provide web and email based support
      ([email protected]) for Xerox Customer Support Centers on a
      worldwide basis.

4.4   Second and Third Level local language support for calls in Europe (XL) is
      provided by an office in the UK in German, French, and Italian; in Canada
      (XCI) support is provided by an office in the US in English only; and in
      Latin America (ACO) support is provided by an office in the US in English
      only, or via email in English.

4.5   ScanSoft and Xerox will each designate a technical support contact person
      responsible for overall communications between each company.

5.) SUPPORT RESPONSIBILITY

ScanSoft will provide all levels of support for any TextBridge Pro Software
scanner related questions other than those questions related directly to the
Document Centre Systems scanning. In cases where Xerox receives call on any
questions concerning TWAIN, or other scanner driver connectivity, it will be the
responsibility of ScanSoft and will be forwarded from Xerox to ScanSoft. The
customer may call the TextBridge support line at 800-880-8806 with in the USA,
978-977-0764 for outside of the USA and add UK phone numbers for European
support for assistance with such questions. Xerox Customer Support will be
responsible for all other calls related to the TextBridge Pro Software operation
and the Document Centre Systems scan to file capabilities. ScanSoft will forward
all calls related to the Document Centre Systems and the related scan to file
capabilities to Xerox Customer Support Centers. If both parties agree to
transfer responsibility for communicating with an individual customer to
ScanSoft, ScanSoft will assume all further responsibility for that customer's
support, including sending any pertinent bug fixes, if available, at ScanSoft's
own expense.

6.) SOFTWARE LICENSE FOR XEROX SUPPORT CENTERS

In order to address customer support issues, Xerox support centers or their
subcontractors are permitted to use the Software solely for support and/or
testing purposes for Xerox customers. Such installation is not licensed for
operational use, and is for support purposes only. The Software is for internal
use only and will not be distributed externally.

7.) SOFTWARE PROBLEM RESOLUTION PROCESS AND ESCALATION PROCESS

The Software Problem Report (SPR) process includes the following steps:

    ~   SPR's are filed as needed.

    ~   SPR's are prioritized.

    ~   ScanSoft personnel are assigned to take direct responsibility for
        handling the SPR.

    ~   The timeline requirement is identified to resolve the SPR.

    ~   The strategy that will be taken to resolve the issue is identified.

    ~   Resolution to the problem or work-around is communicated.

    ~   As appropriate and where applicable, "patches" are posted on the web for
        download.

    ~   At Scansoft's discretion fixes may be rolled into a point release which
        can then be sent to customers experiencing a particular problem
        addressed in that version.

    ~   The patch or point release will be delivered to Xerox Third Level
        Support for fix verification at the same time as ScanSoft performs QA on
        the release.

    ~   Communication of the progress against the action plan is made on a daily
        basis for critical problems and on a weekly basis for normal problems.

If this process is failing to satisfy either party, a review of the situation
and the process to date should be made by ScanSoft and Xerox.

8.) REGULAR REPORTING

8.1   ScanSoft will provide Xerox with a "Solutions" database of known problems
      and solutions on a monthly basis in a format that is compatible with
      Xerox' DB IV database. The database information is expected to be
      available from ScanSoft beginning in June 1998, or sooner, and updates
      will be provided within twenty (20) days after the last day of each
      calendar month. The basis for this information is on the TextBridge Pro98
      web page as FAQ's and technical information bulletins which Xerox has
      access to.

8.2   Xerox and ScanSoft recognize and acknowledge the importance to each other
      of Third Level technical support information regarding both individual
      cases and aggregate support statistics, and commit to provide each other
      with regular reports containing all pertinent technical support
      information. These reports will be provided as they become available.
      ScanSoft provides a comprehensive FAQ document and technical bulletins for
      TextBridge Pro 98 via the TextBridge Pro98 web page (at
      "www.textbridge.com"). Updates will be added to these on a regular basis


<PAGE>   13

9.) TRAINING MATERIALS

ScanSoft and Xerox recognize and acknowledge the importance of providing
training to each other regarding the TextBridge Pro Software.

9.1   ScanSoft will develop training materials that cover the information
      required to adequately support the TextBridge Pro Software. At a minimum,
      ScanSoft will provide the same level of training that Xerox provides to
      its own support staff and ScanSoft will provide the same level of product
      training/materials to Xerox as they provide to other OEM's. The training
      materials will include robust troubleshooting and escalation procedures or
      guidelines.

9.2   Xerox will honor reasonable requests from ScanSoft to provide basic
      training on Xerox DCS Products to facilitate ScanSoft's customer support
      efforts. The scope and timing of such training will be mutually agreed
      upon by both companies' support representatives.

10.) LOCATION AND TIMING OF TRAINING

To ensure adequate customer support, ScanSoft's training of Xerox personnel will
be provided prior to Xerox' product introduction date. The training will be held
in Rochester, NY at a Xerox location for a mutually agreeable period appropriate
to the training program.

11.) SCOPE OF TRAINING

11.1  This training will include, but not be limited to, all TextBridge Pro
      Software features and functions, customer usability, and advanced
      troubleshooting based on customer support history. ScanSoft will be
      expected to train the trainers from each of the major Xerox Customer
      Support Functions that is using or supporting the TextBridge Pro Software.

11.2  Xerox may further request and ScanSoft shall provide additional training
      as reasonably necessary to inform all personnel of new program versions or
      enhancements.

11.3  ScanSoft will provide on-site training at their facility, when requested
      by Xerox, in order to provide an in-depth, hands-on customer support
      experience for a mutually agreed upon number of Xerox Third Level Support
      technicians.

11.4  All initial and subsequent training shall be provided at no charge to
      Xerox, however for any subsequent training sessions Xerox shall pay
      ScanSoft for reasonable travel and lodging expenses.

11.5  In the event ScanSoft releases new version of TextBridge Pro, ScanSoft
      shall provide Xerox with additional training at no additional charge.

12.) MATERIAL RIGHTS

12.1  ScanSoft grants Xerox the royalty-free rights to modify reproduce and use
      all training classes, methods and materials supplied ScanSoft or developed
      by Xerox pursuant to this Agreement.

12.2  ScanSoft restricts the use of such materials to training Xerox employees
      or to agents contracted by Xerox for the purpose of selling or supporting
      Xerox products.

13.) TRAINING DELIVERY PROCESS AND CONTENT

13.1  ScanSoft will provide training sessions, with back-up documentation, to
      Xerox Second Level support. The training will include robust
      troubleshooting for topics (such as Installation, Software Upgrade,
      Quality of OCR, OCR application interface, operability to optimize OCR),
      escalation procedures/guidelines and relationship building for those
      support personnel who will be involved in (bi-directional) escalation.

13.2  ScanSoft will provide training material (instructor notes, transparencies,
      lab exercises/lab specifications, and hand-out documentation) for
      training/customer demonstration/customer application testing purposes to
      Xerox trainers responsible for training field support people.

13.3  Training content (lecture, lab, and documentation) should focus on
      supported environments, installation procedure, application verification
      process, known issues/problems and troubleshooting procedures.

13.4  ScanSoft will provide pre-sales/installation support literature: customer
      collaterals describing strengths, positioning, customer benefits, and
      technical documentation (this information is available at the ScanSoft web
      site).


<PAGE>   14

                                SCANSOFT - XEROX
                          GOLD DISK BUNDLING AGREEMENT

                                  ATTACHMENT IV

                          TEXTBRIDGE ODP SPECIFICATION

                                  Chuck Hudson
                                    3/3/1998

               1.1.1. Document Scope


This document will describe the features of the TextBridge release for the ODP
OEM client.


               1.1.2. Project Scope


This project will consist of a master CD created to support both 16-bit Windows
3.x systems and 32-bit Windows 95 and NT systems with the current TextBridge 3.0
(16-bit) and TextBridge 98 (32-bit) products. It is fully understood that the
TextBridge 3.0 code base is at a "frozen" point and will not be updated for this
product.


               1.1.3. Project Schedule


   DATE          1st build delivered to QA (without updated help files)
   3/16/1998     Updated help files delivered to Release Engineering

   3/18/1998     2nd build with updated help files and any necessary SPRs fixed
   3/19/1998     First build of beta to be delivered

   4/15/1998     Final build delivered to QA
   4/17/1998     Final Gold Master with all languages
   6/1/1998      Launch date for product


               1.1.4. Code Base


        For Win 3.x the code used will be the existing released TextBridge 3.0
        with the following UI languages - English US, French, German, Italian,
        Spanish, and Brazilian Portuguese. No changes will be made to this code
        and it will be incorporated on the final CD as is. Thus it will be
        copied on the project from the existing master cd.


<PAGE>   15

        For Win NT and 95 the code base will be the TextBridge Pro 98 release
        with the following UI languages - English US, English UK, French,
        German, Italian, Spanish, and Brazilian Portuguese.

        Note: The complete version of Brazilian Portuguese for TextBridge Pro 98
        may not be included in the 1st build of the beta release to be
        delivered, as localization may not be complete.


               1.1.5. UI Languages and the corresponding recognition languages


        TextBridge Pro 3.0 for use with Microsoft Windows(R) 3.1

<TABLE>
<CAPTION>

                        PAGE SIZE
           VERSION       DEFAULT    INTERFACE           RECOGNIZED LANGUAGES
          ----------    ---------   ---------  -----------------------------------------
<S>                     <C>         <C>        <C>
          ENGLISH US     Letter     English    English, French, German, Italian, Spanish

            FRENCH         A4        French    Danish, Dutch, English, Finnish, French,
                                               German, Italian, Norwegian, Portuguese,
                                               Spanish, Swedish

            GERMAN         A4        German    Danish, Dutch, English, Finnish, French,
                                               German, Italian, Norwegian, Portuguese,
                                               Spanish, Swedish

           ITALIAN         A4       Italian    Danish, Dutch, English, Finnish, French,
                                               German, Italian, Norwegian, Portuguese,
                                               Spanish, Swedish

           SPANISH         A4       Spanish    Danish, Dutch, English, Finnish, French,
                                               German, Italian, Norwegian, Portuguese,
                                               Spanish, Swedish

          BRAZILIAN        A4      Brazilian   Danish, Dutch, English, Finnish, French,
          PORTUGUESE               Portuguese  German, Italian, Norwegian, Portuguese,
                                               Spanish, Swedish
</TABLE>

        TEXTBRIDGE PRO 98 FOR USE WITH MICROSOFT WINDOWS(R) 95 AND NT

<TABLE>
<CAPTION>
                        PAGE SIZE
           VERSION       DEFAULT    INTERFACE           RECOGNIZED LANGUAGES
          ----------    ---------   ---------  -----------------------------------------
<S>                     <C>         <C>        <C>
          ENGLISH US     Letter     English    English, French, German, Italian, Spanish

          ENGLISH UK       A4       English    Danish, Dutch, English, Finnish, French,
                                               German, Italian, Norwegian, Portuguese,
                                               Spanish, Swedish

            FRENCH         A4        French    Danish, Dutch, English, Finnish, French,
                                               German, Italian, Norwegian, Portuguese,
                                               Spanish, Swedish

            GERMAN         A4        German    Danish, Dutch, English, Finnish, French,
                                               German, Italian, Norwegian, Portuguese,
                                               Spanish, Swedish

           ITALIAN         A4       Italian    Danish, Dutch, English, Finnish, French,
                                               German, Italian, Norwegian, Portuguese,
                                               Spanish, Swedish

           SPANISH         A4       Spanish    Danish, Dutch, English, Finnish, French,
                                               German, Italian, Norwegian, Portuguese,
                                               Spanish, Swedish

          BRAZILIAN        A4      Brazilian   Danish, Dutch, English, Finnish, French,
          PORTUGUESE               Portuguese  German, Italian, Norwegian, Portuguese,
                                               Spanish, Swedish
</TABLE>

               1.1.6. Installer


<PAGE>   16

        The autorun that automatically runs once the CD is placed in the user's
        machine will launch a setup.exe (also found at the root level: see CD
        Structure below). This executable will check the system for which
        operating system is installed (either Win 3.x or Win 95/NT). This `os
        checker' will have to be written in 16-bit code so that it can be
        launched on a Win 3.x system. Once it determines which operating system
        is installed it will in turn launch the corresponding setup from either
        the TextBridge 3.0 directory or the TextBridge Pro 98 directory (found
        at the root of the CD). This os checker has been written and used on the
        TextBridge Classic hybrid CD.


        TextBridge Pro 98 Issues

        -  The normal electronic registration will be used for TextBridge Pro 98
           as is currently employed for the product. This includes all localized
           versions.

        -  Language selector - US English and Brazilian Portuguese must be added
           to the selector which is launched in the TB Pro 98 setup.

        -  Billboard 3 during file installation must be removed. (see below)

                                   [GRAPHIC]

        -  The dialog in English and all localized versions of TextBridge Pro 98
           that provides ScanSoft's toll free support number should be removed
           as ODP will be supporting the product. (see below)

        -  The Release Notes must be checked and updated to correspond with all
           changes to TextBridge Pro 98. (see Appendix B)

        -  Since ODP will be the support for this product all phone numbers
           must be changed to ODP's corresponding phone listings. (see appendix
           A)


<PAGE>   17

                             1.1.6.1.1. CD STRUCTURE


               Autorun
OS_DETECTOR

               - Win16 folder

                        Structure of TB 3.0 Cd with application then Doc folder


               - Win32 folder

                        Language selector with the directories for each language


<PAGE>   18

Appendix A                                             ODP Support Phone Numbers

TEXT BRIDGE PRO SUPPORT REQUIREMENTS

Monica Kraft
2/18/98

The following table lists the contact telephone numbers for Customer Support
within each TextBridge Pro Language.

Please provide a statement on the user interface in the appropriate location
with this information.


<TABLE>
<CAPTION>
     Language               Xerox Support Telephone Number
- ------------------    ------------------------------------------
<S>                   <C>
English               US: 800-821-2797
                      UK/IRE: 01908 692 444
                      Canada: 800-939-3769

German

      Berlin          ++49 30 / 78788 - 222

      Bochum          ++49 2327 / 941 - 441

      Dusseldorf      ++49 211 / 990 - 2555

      Hamburg         ++49 40 / 85360 - 444

      Munchen         ++49 89 / 99644 - 122

      Neu Isenburg    ++49 6102 / 734 - 123

      Stuttgart       ++49 711 / 7254 - 111

French                Canada: 800-939-3769
                      France: "Contact Your local Xerox Support"

      Italian         "Contact Your local Xerox Support"

      Spanish         "Contact Your local Xerox Support"

      Brazilian
      Portuguese      "Contact Your local Xerox Support"
</TABLE>


Note:
    These numbers will only exist in the help files of TB Pro 98.


<PAGE>   19

Appendix B                            Current TB Pro 98 English US Release Notes


                          [TEXTBRIDGE(R) PRO 98 LOGO]

RELEASE NOTES FOR VERSION 1.0

Copyright (C) 1995-1997 ScanSoft, Inc., a Xerox Company
Portions of this product copyright (C) 1990-1997 Pixel Translations, Inc.
Portions of this product copyright (C) 1993-1997 Mastersoft Corp.

Please read this document for up-to-date information about ScanSoft's TEXTBRIDGE
PRO 98, VERSION 1.0 for Windows 95 and Windows NT operating systems. These
release notes discuss the following topics:

- -   What's New in TextBridge Pro 98

- -   Registration Information

- -   Installation Instructions

- -   If You Have Other Versions of Textbridge

- -   Supported Scanners

- -   Scanner Notes

- -   Application Notes

- -   Integration with Pagis Pro 97

WHAT'S NEW IN TEXTBRIDGE PRO 98

- -   IMPROVED OCR ACCURACY - Dramatically saves time retyping.

- -   INCREASED DOCUMENT RECOGNITION CAPABILITIES - Easily and accurately
    recognize complex document components such as tables, line art, drop caps,
    insets, reverse text.

- -   ENHANCED PROOFREADING CAPABILITIES - Proofread and edit document text
    directly from within TextBridge Pro 98 for even more accurate output
    results.

- -   INSTRUCTIONAL OCR WIZARD - Assists you by stepping you through the OCR
    process.

- -   ADVANCED ZONE EDITING - Create, reshape, resize and renumber zones. Use
    highlighter pens to edit or adjust OCR components such as text, pictures,
    and tables enabling even greater control over the desired results.

- -   SUPPORT FOR ADOBE ACROBAT PDF FORMAT - With TextBridge Pro 98 you can now
    save the OCR results into PDF format.

- -   BETTER RECOGNITION OF TABLES - Easily convert tables into spreadsheets as
    well as word processing documents.


<PAGE>   20

REGISTRATION INFORMATION

Xerox provides unlimited, toll-free customer support to registered users of
TextBridge Pro. When you register, you are provided with a toll-free number to
call for support questions.

There are 4 easy ways to register:

- -   INTERNET - Go to the TextBridge web site at WWW.TEXTBRIDGE.COM. Select
    TextBridge Pro98, go to Customer Support and select Product Registration.
    You will receive the toll-free number by return e-mail.

- -   MODEM - Fill out the registration form during software installation. Click
    on "TextBridge Pro98 Electronic Registration" in the TextBridge Pro98 Master
    Setup window to bring up the TextBridge Product Registration form. Follow
    the instructions to send your registration by modem. A dialog box appears
    with the toll-free number. Be sure to write it down.

- -   FAX - Fill out the registration form during software installation. Click on
    "TextBridge Pro98 Electronic Registration" in the TextBridge Pro98 Master
    Setup window to bring up the TextBridge Product Registration form. When you
    print the registration form, a dialog box appears with the toll-free number.
    Be sure to write it down. Then FAX your registration to 888-979-7662 or
    978-531-0675.

- -   U.S. MAIL - Return the postage-paid Registration Card included with
    TextBridge Pro98. You will receive a postcard with the toll-free number.

INSTALLATION INSTRUCTIONS

Before you install or uninstall TextBridge Pro 98, exit from any open
applications so that only Windows is running. There should be no applications
listed in the task bar and no floating toolbars. For example, the Corel DAD and
Office shortcut bar should not be running. (CTRL+ALT+DELETE to display Task List
and 'End Task' on all applications except Explorer.)

TextBridge uses autorun for installation.

If autorun does not work on your system, use the following procedure to install
this version:

1. Put CD in CD-ROM drive (D: or the letter assigned to your CD-ROM).

2. From the Start menu, select Run.

3. Type d:\autorun.exe

4. Follow the on-screen instructions.

During installation, you select a type of installation. If you select Typical,
TextBridge will install the English, French, German, Italian, and Spanish
language packs. If you do not wish to install all five language packs, you must
select Custom.

IF YOU HAVE OTHER VERSIONS OF TEXTBRIDGE

TextBridge Pro 98 is designed to be self-contained. Thus, if you have another
version of TextBridge installed on your PC, you do not need to uninstall it
before installing TextBridge Pro Pro 98.

Note: You cannot run both versions of TextBridge simultaneously.

APPLICATION NOTES

This section discusses a number of points relating to using features in
TextBridge and Instant Access.

- -   The TEXTBRIDGE USER'S GUIDE is available in PDF format from the TextBridge
    CD-ROM in the Tb98_Doc directory. You can read documents in PDF files in the
    Adobe Acrobat Reader. A Readme file describes installing the Acrobat Reader
    in the Tb98_Doc directory and using the Acrobat Reader to read or print the
    TextBridge User's Guide. Another Readme file describes the Acrobat Reader.


<PAGE>   21

- -   QUATTRO PRO is not supported by Instant Access OCR.

- -   NETSCAPE NAVIGATOR 3.0 GOLD is not supported by Instant Access OCR.

- -   WORDPRO 97 with Instant Access OCR imports ASCII text. To retain font and
    paragraph style information, use TextBridge as a standalone application.

- -   LOTUS 1-2-3 SMARTSUITE 97 with Instant Access OCR works best if you use the
    Paste Special command in the Edit menu and select 1-2-3 format.

- -   With earlier versions of LOTUS 1-2-3, use TextBridge as a standalone
    application for the best results. Save your results in the format for Lotus
    1-2-3, and open the file in your Lotus 1-2-3 application.

- -   PAGE COLLATION is not automatically supported for PDF. To process
    double-sided pages and output to PDF, select Process (7)Scan Only, then
    select Auto Process. After the front sides of the pages are scanned, select
    Other Side from the Add Pages to Scanner dialog box. This will create a TIFF
    file with all pages collated in the correct order. Once the pages are all
    scanned, select Process (7)Image File, then select Auto Process or Get Page
    to process the image file you created.

- -   While TextBridge is processing, if you click on any menu item, TextBridge
    processing will pause until the drop down menu is closed.


INTEGRATION WITH PAGIS

Pagis includes an earlier version of TextBridge. If you already have Pagis
installed on your PC, installing TextBridge Pro 98 will update Pagis to use
TextBridge Pro 98. Pagis is updated as follows:

- -   INDEXING - Pagis will use TextBridge Pro 98 for indexing when pages are
    scanned.

- -   SEND TO BAR - TextBridge Pro 98 is added to the Pagis Send To bar. The
    earlier version of TextBridge is not automatically removed. To remove that
    previous version of TextBridge, open the Send To folder in your Windows
    folder and delete that TextBridge shortcut.

- -   IMAGE FILE CONTEXT MENU - TextBridge Pro 98 is added to the Send To options
    when you right-click on an image file icon.

- -   DRAG AND DROP IMAGE FILES - When you drag an image file to a Pagis
    registered text application, TextBridge Pro 98 will be used to convert the
    image to text.

- -   PAGIS START MENU - TextBridge Pro 98 is NOT automatically added to the Pagis
    group in the Windows Start menu. To add TextBridge Pro 98, in your Windows
    folder copy the shortcut to TextBridge Pro 98 from the Start Menu (7)
    Programs (7) TextBridge Pro 98 folder to the Start Menu (7) Programs (7)
    Pagis Pro 97 folder.

If you uninstall TextBridge Pro 98, Pagis will revert to using the bundled
TextBridge.

The first time you drag and drop a TIF or XIF file onto the WORDPERFECT 8.0
entry in the Pagis SendTo bar, the file will not be recognized. Simply repeat
the drag and drop process, and recognition will proceed as usual for this file
and for any subsequent files. In other words, this only happens once during the
first drag and drop activity.

SUPPORTED SCANNERS


<PAGE>   22

TextBridge Pro supports scanners that are controlled by ISIS and TWAIN scanner
drivers. For the most current list of all supported scanners by model number and
platform, please visit our web site at WWW.TEXTBRIDGE.COM.

TWAIN SOURCE DRIVERS (.DS FILES) MUST BE PROVIDED BY THE SCANNER MANUFACTURER.
When these are installed on your PC, they are located in Windows\TWAIN or
TWAIN_32. TextBridge Pro provides a TWAIN interface that communicates with these
TWAIN source drivers, supporting any fully TWAIN-compliant scanner or other
input device that can supply a binary (black and white) image in a supported
resolution (72 to 900 dots per inch).

SCANNER NOTES

This section discusses a number of points relating to using scanners with
TextBridge Pro.

- -   For most OCR jobs, scanning should be done at 300 DPI for best results. For
    documents with type smaller than 8 point, scanning at 400 dpi may provide
    improved recognition.

- -   TEXTBRIDGE SCANNER SETUP allows you to use the native TWAIN INTERFACE or the
    TextBridge user interface. This option works well with some TWAIN drivers,
    such as MICROTEK and EPSON. However, some scanners may not work with the
    TextBridge user interface as well as with the native TWAIN interface. For
    example, MUSTEK, ARTEC, and CANON will not perform correctly unless they use
    their own native scanning settings dialogs. You can try each and decide
    which works best for you.

- -   Some TWAIN SOURCE DRIVERS, when activated, display their user interface
    window behind TextBridge Pro's main window. To access the TWAIN interface,
    you need to ALT+TAB to the TWAIN screen.

- -   In order to select a TWAIN driver, you must know the name of the driver. The
    NAME OF THE TWAIN DRIVER may not be the same as the name or model of the
    scanner. Refer to your scanner documentation to find the driver name. (For
    example, if you want to choose the HP SCANJET 4C TWAIN driver, it is not
    listed with the other HP scanners. It is listed alphabetically under
    DESKSCAN.)

- -   If the wrong TWAIN DRIVER is selected, TextBridge may lockup while starting.
    In the event that TextBridge locks up, run the scnsetup program in the
    TextBridge Bin folder. Select the appropriate scanner driver.

- -   Although TextBridge supports scanning BUSINESS CARDS through the scanner
    ADF, it is recommended that you use the scanner flatbed.

- -   Many FLATBED SCANNERS do not have a platen large enough for a LEGAL PAGE.
    These scanners will scan to their platen length if you select "Legal" page
    size. To scan legal size pages on scanners whose platen's are smaller than
    legal page size, you must use an ADF.

- -   TWAIN drivers may allow you to select LEGAL PAGE size in the Page Type tab
    of the Settings dialog box. However, if the ISIS ASPI SCANNER is selected,
    the legal size may not be available.

- -   If you are using an ISIS driver under NT 4.0, you need to make sure you have
    an ASPI MANAGER loaded and running so you can communicate with your scanner.

    To check if you have an ASPI manager running, check Control Panel->Devices
    for an ASPI32 device that has a status of "Started" and Startup of
    "Automatic." If you do not see this, you will need to get an ASPI manager
    from one of the following sources:

    a) Adaptec's EZ-SCSI 4.0 or higher CD


<PAGE>   23

    b) If you own an Adaptec SCSI card, download the ASPI32.EXE from Adaptec's
    website at: http://www.adaptec.com/support/BBS_EZSCSI.html#EZSCSI

    Follow Adaptec's instructions for installing this device. Your system
    administrator may have to perform these steps.

- -   If you are using a SHEETFED scanner, the Automatic Document Feeder (ADF)
    selection may be available. Make sure the ADF OPTION IS NOT SELECTED.

ACERSCAN

    Use the 16-bit TWAIN driver and the native TWAIN interface with the ACERSCAN
    300F.

AVISION

    The AVISION AV360C TWAIN driver does not support scanning at 400 dpi or
higher.

CANON

    If you receive a scanner failure message with the CANON IX-4015 scanner, try
    removing the scanner driver \win95\pixtran\canon.pxw and reinstall
    TextBridge.

EPSON

    When you use the Scan Only command with an EPSON ES-1000C WITH ADF, if the
    scanner jams, you do not get a message. The progress dialog box stays on
    scanning. If you press CTRL+ALT+DELETE to bring up the Close Program dialog
    box, you can see that Icrsrv32 is not responding. You must highlight
    lcrsrv32 and press the End Task button and follow the same procedure for
    TextBridge. Be sure to properly Shut Down your system and reboot your
    computer, and also turn your scanner off and then on again to get the
    scanner back.

    This does not happen with the Epson ES-1200C.

HEWLETT-PACKARD

    HP ACCUPAGE scanner drivers are not supported.

    HP IIP AND IIC scanners will not work with certain host adapter/SCSI device
    software combinations. For instance, with the AHA154x series adapters, you
    need to be running the Adaptec version of AHA154x.mdp device driver (on the
    Win95 CD ROM) because it will not work with the Microsoft version of
    AHA154x.mdp that is installed by default when Win95 is installed on a
    system. It is not known if there is an equivalent replacement for the
    AHA294x.mdp driver. Check the Microsoft web page for device driver updates.

LOGITECH

    The LOGITECH PAGESCAN incorporates the TextBridge OCR engine and also has
    built-in page sensing technology. To use the PageScan scanner with
    TextBridge Pro, and avoid conflicts with the PageScan software, you need to
    operate in a particular sequence.

    The key is to start up TextBridge Pro BEFORE putting a page in the scanner.
    Otherwise, the page sensing feature will activate the PageScan software. If
    you have not already set up the PageScan scanner as the TextBridge Pro
    scanner, use the Select Scanner/Source command under the File menu. Select
    TWAIN, then select PageScan in the TWAIN Select Source dialog.

    From TextBridge Pro, click the Go button. This should display the Logitech
    PageScan Color TWAIN interface should appear. From there, select Black Line
    Drawing. (You can also go into the Advanced ... options to view or change
    the scan resolution or scanner brightness settings.)

    At this stage, you can put a page in the scanner and click the Scan Now
    button. When you have finished scanning, TextBridge Pro recognizes the
    document, and you can save the recognized text to the file format of choice.


<PAGE>   24

MICROTEK

    MICROTEK E3 scanner platen is short of the needed 14 inches for a LEGAL PAGE
    scan. If you use the TWAIN Scanwizard 2.3 (16 or 32 bit) and scan a legal
    size page with the document feeder, the preview image in TextBridge cuts off
    the bottom 3 inches of the page. If you select the ISIS ASPI scanner, the
    legal size is not available.

MUSTEK

    When using a MUSTEK scanner, use the Mustek TWAIN user interface. Do not
    configure the scanner to use the TextBridge user interface.

STORM EASY PHOTO SMARTPAGE

    When scanning multiple page documents, an extra warning dialog box is
    displayed after the last page has been scanned. Ignore the message and click
    OK. No information will be lost.

VISIONEER PAPERPORT

    No scanner driver is required for VISIONEER PAPERPORT scanners. TextBridge
    does not drive the scanner; Visioneer's Paperport Software does. In the
    Select Scanner dialog box, select No Scanner. TextBridge provides an
    automatic link to the word processor icons on the Paperport desktop.

    To access TextBridge Pro98 from within the Paperport desktop:

    1.  Go to the Link Preferences command in the Edit menu.

    2.  Select your word processor's icon.

    3.  Click on the OCR Application down arrow.

    4.  Choose TextBridge OCR.

    5.  Click on OCR Settings.

    6.  Select a page type and any other options you want to use.

    7.  Click on OK to save changes.

    When you are done with settings, scan a document in PaperPort, as you
    normally would. Then, drag it to your word processor icon, and TextBridge
    Pro recognition will automatically be launched. When OCR is complete, the
    recognized document is automatically opened in your word processor.

    Please refer to the PaperPort User's Guide for complete information.

    NOTE: The link between the TextBridge and the Visioneer Paperport software
    will only work with Visioneer Paperport Version 4.0 or later.


ISIS DRIVERS

TextBridge Pro provides the following ISIS DRIVERS from Pixel Translations as a
standard part of the software.

WINDOWS 95 ISIS DRIVERS

Abaton 300S (no ADF)=ABATON2 Version 1.21
Abaton 300S (with ADF)=ABATON Version 1.21
Abaton Color (no ADF)=ABATON2 Version 1.21
Abaton Color (with ADF)=ABATON Version 1.21
Abaton GS (no ADF)=ABATON2 Version 1.21
Abaton GS (with ADF)=ABATON Version 1.21
Abaton Transcribe (no ADF)=ABATON2 Version 1.21
Abaton Transcribe (with ADF)=ABATON Version 1.21
Agfa Arcus Plus w/Adaptec=AGFA Version 1.29
Agfa Arcus w/Adaptec=AGFA Version 1.29
Agfa StudioScan II w/ASPI=AGFAASPI Version 1.35
Agfa StudioScan II w/PCZ SCSI=AGFAPCZ Version 1.35

<PAGE>   25

Agfa StudioScan II w/PNR SCSI=AGFAPNR Version 1.35
Agfa StudioScan w/ASPI=AGFAASPI Version 1.35
Agfa StudioScan w/PCZ SCSI=AGFAPCZ Version 1.35
Agfa StudioScan w/PNR SCSI=AGFAPNR Version 1.35
Agfa StudioStar w/ASPI=AGFAASPI Version 1.35
Apple Color One 1200/30=APPLEONE Version 1.31
Apple Color One 600/27=APPLEONE Version 1.31
Apple OneScanner=APPLE Version 1.8
AVision Scanner Series=AVISION
AVR scanner=AVR2 Version 1.30
Canofile 510=CANOFILE Version 1.9
Canofile 520=CANOFILE Version 1.9
Canon CanoScan 300 w/ASPI=CANON Version 1.32
Canon CanoScan 600 w/ASPI=CANON Version 1.32
Canon GP55F (w/Fax Board) w/SCSI=GP55 Version 1.3
Canon IX-12 Feeder=CAIX12FD Version 1.20
Canon IX-12 Flatbed (Adf Optional)=CAIX12FT Version 1.20
Canon IX-12=CAIX12 Version 1.20
Canon IX-12F=CAIX12 Version 1.20
Canon IX-3010 w/ASPI=CANON Version 1.32
Canon IX-3010 w/SI4=CANONSI Version 1.32
Canon IX-30F=CAIX30 Version 1.8
Canon IX-4015 w/ASPI=CANON Version 1.32
Canon IX-4015 w/SI4=CANONSI Version 1.32
Canon IX-4025 w/ASPI=CANON Version 1.32
Chinon DS-3000=CHINON Version 0.2
Complete PC Scanner (no detect)=CPCF Version 1.2
Complete PC Scanner=CPC Version 1.2
Envision 24 Pro=ENVISION Version 1.32
ENVISION 6600S w/ASPI=VISTASPI Version 1.29
ENVISION 6600S w/UMAX UDS-11=VISTA Version 1.29
ENVISION 8800S w/ASPI=VISTASPI Version 1.29
ENVISION 8800S w/UMAX UDS-11=VISTA Version 1.29
ENVISION Dynamic Pro 3.0 w/ASPI=VISTASPI Version 1.29
ENVISION Dynamic Pro 3.0 w/UMAX UDS-11=VISTA Version 1.29
Envision ENV 6100=ENVISION Version 1.32
Envision ENV 8100=ENVISION Version 1.32
Epson ES-1000C=EPSON Version 1.68
Epson ES-1200C=EPSON Version 1.68
Epson ES-1400C=EPSON Version 1.68
Epson ES-300C=EPSON Version 1.68
Epson ES-300GS=EPSON Version 1.68
Epson ES-600C=EPSON Version 1.68
Epson ES-800C=EPSON Version 1.68
Epson Expression 636=EPSON Version 1.68
Epson GT-4000=EPSON Version 1.68
Epson GT-6000=EPSON Version 1.68
Epson GT-6500=EPSON Version 1.68
Epson GT-8000=EPSON Version 1.68
Epson GT-8500=EPSON Version 1.68
Epson GT-9000=EPSON Version 1.68
Epson GT-9500=EPSON Version 1.68
Epson Scanner (Generic Model)=EPSON Version 1.68
Fujitsu M3093DG=FUJIGINE Version 1.141
Fujitsu M3093GX=FUJIGINE Version 1.141
Fujitsu M3096G=FUJIGINE Version 1.141
Fujitsu M3096GX=FUJIGINE Version 1.141
Fujitsu M3097G=FUJIGINE Version 1.141

<PAGE>   26

Fujitsu ScanPartner 10=FJSP Version 1.141
Fujitsu ScanPartner 10C=FJSP Version 1.141
Fujitsu ScanPartner 600C=FJSP Version 1.141
Fujitsu ScanPartner E.O.=FUJIGIN3 Version 1.141
Fujitsu ScanPartner Jr.=FJSP Version 1.141
Howtek Personal Color Scanner=HOWTEK Version  1.10
HP Scanjet 3c=SCANJET Version 1.40
HP Scanjet 4c=SCANJET Version 1.40
HP Scanjet 4p=SCANJET Version 1.40
HP Scanjet 5p=SCANJET Version 1.40
HP Scanjet IIc=SCANJET Version 1.40
HP Scanjet IIcx=SCANJET Version 1.40
HP Scanjet IIIp=SCANJET Version 1.40
HP Scanjet IIp=SCANJET Version 1.40
HP Scanjet Plus=SCANJET Version 1.40
HP Scanjet=SCANJET Version 1.40
IBM PageScanner, Adapter 3119/A=IBM_3119 Version 1.24
LeoScan Scanner=LEOSCAN Version 1.01
Microtek MS-II w/Page Detect=MSII Version 1.44
Microtek ScanMaker E3 w/ASPI=MKTKASPI Version 1.35
Microtek ScanMaker E3 w/Microtek PCZ SCSI=MKTKPZ Version 1.35
Microtek ScanMaker E3 w/Microtek PNR SCSI=MKTKPNR Version 1.35
Microtek ScanMaker E6 w/ASPI=MKTKASPI Version 1.35
Microtek ScanMaker E6 w/Microtek PCZ SCSI=MKTKPZ Version 1.35
Microtek ScanMaker E6 w/Microtek PNR SCSI=MKTKPNR Version 1.35
Microtek ScanMaker II=SCNMKRII Version 1.53
Microtek ScanMaker IIhr w/ASPI=MKTKASPI Version 1.35
Microtek ScanMaker IIhr w/Microtek PCZ SCSI=MKTKPZ Version 1.35
Microtek ScanMaker IIhr w/Microtek PNR SCSI=MKTKPNR Version 1.35
Microtek ScanMaker III w/ASPI=MKTKASPI Version 1.35
Microtek ScanMaker III w/Microtek PCZ SCSI=MKTKPZ Version 1.35
Microtek ScanMaker III w/Microtek PNR SCSI=MKTKPNR Version 1.35
Microtek Scanner=MKTK_AT Version 1.47
Nikon SCANTOUCH Scanner=NIKON Version 1.9
Okidata DOC-IT 3000=DOCIT Version 1.30
Okidata DOC-IT 4000=DOCIT Version 1.30
Panasonic FX-RS 505, 506, and 307=PANA Version  1.3
Panasonic KV-SS25 w/SCSI=PANASCSI Version 1.47
Panasonic KV-SS50 w/SCSI=PANASCSI Version 1.47
Panasonic KV-SS50EX w/SCSI=PANASCSI Version 1.47
Panasonic KV-SS55 w/SCSI=PANASCSI Version 1.47
Panasonic KV-SS55EX w/SCSI=PANASCSI Version 1.47
Panasonic KV-SS60EX w/SCSI=PANASCSI Version 1.47
Panasonic KV-SS60N w/SCSI=PANASCSI Version 1.47
Panasonic KV-SS65EX w/SCSI=PANASCSI Version 1.47
Panasonic KV-SS65N w/SCSI=PANASCSI Version 1.47
Pentax IQ Scan (HP Emulation)=PENT Version 1.44
Photron w/ASPI=PHOTRON Version 1.10
Ricoh FS-2=RICOHFS2 Version 1.107
Ricoh IS-410 and IBM 2456 w/WINASPI=RICOH41W Version 1.105
Ricoh IS-410 and IBM 2456=RICOH410 Version 1.105
Ricoh IS-420=RICOH420 Version 1.133
Ricoh IS-430=RICOH420 Version 1.133
Ricoh IS-50=RICOH560 Version 1.107
Ricoh IS-510 and IS-520=RICOH520 Version 1.109
Ricoh IS-60=RICOH560 Version 1.107
Ricoh RS-2200=RS2200 Version 1.107
SAPHIR w/ASPI=VISTASPI Version 1.29
SAPHIR w/UMAX UDS-11=VISTA Version 1.29

<PAGE>   27

Sharp SCSI JX-300, JX-320, JX-325, JX-450, JX-610=SHRPSCSI Version 1.11
UMax Generic Scanner w/GSII-PC Card=UMAXGSII Version 1.29
UMax OA-I w/GSII-PC Card=UMAXGSII Version 1.29
UMAX Powerlook w/ASPI=VISTASPI Version 1.29
UMAX Powerlook w/UMAX UDS-11=VISTA Version 1.29
UMax UC1200S w/GSII-PC Card=UMAXGSII Version 1.29
UMax UC1200SE w/GSII-PC Card=UMAXGSII Version 1.29
UMax UC1260 w/GSII-PC Card=UMAXGSII Version 1.29
UMax UC300 w/GSII-PC Card=UMAXGSII Version 1.29
UMax UC630 w/GSII-PC Card=UMAXGSII Version 1.29
UMax UC840 w/GSII-PC Card=UMAXGSII Version 1.29
UMax UG630 w/GSII-PC Card=UMAXGSII Version 1.29
UMax UG80 w/GSII-PC Card=UMAXGSII Version 1.29
UMAX VISTA S-6 w/ASPI=VISTASPI Version 1.29
UMAX VISTA S-6 w/UMAX UDS-11=VISTA Version 1.29
UMAX VISTA S-8 w/ASPI=VISTASPI Version 1.29
UMAX VISTA S-8 w/UMAX UDS-11=VISTA Version 1.29
UMAX VISTA T-6 w/ASPI=VISTASPI Version 1.29
UMAX VISTA T-6 w/UMAX UDS-11=VISTA Version 1.29
Xerox 3002=X3002 Version 1.6
Xerox DocuImage 620S=DOCU620S Version  1.43

Windows NT ISIS Drivers

Apple Color One 1200/30=APPLEONE Version 1.30
Apple Color One 600/27=APPLEONE Version 1.30
Canon DR-3020=CANON_DR Version 1.19
Canon IX-3010 w/ASPI=CANON Version 1.31
Canon IX-4015 w/ASPI=CANON Version 1.31
Canon IX-4025 w/ASPI=CANON Version 1.31
Epson ES-1000C=EPSON Version 1.68
Epson ES-1200C=EPSON Version 1.68
Epson ES-1400C=EPSON Version 1.68
Epson ES-300C=EPSON Version 1.68
Epson ES-300GS=EPSON Version 1.68
Epson ES-600C=EPSON Version 1.68
Epson ES-800C=EPSON Version 1.68
Epson Expression 636=EPSON Version 1.68
Epson GT-4000=EPSON Version 1.68
Epson GT-6000=EPSON Version 1.68
Epson GT-6500=EPSON Version 1.68
Epson GT-8000=EPSON Version 1.68
Epson GT-8500=EPSON Version 1.68
Epson GT-9000=EPSON Version 1.68
Epson GT-9500=EPSON Version 1.68
Epson Scanner (Generic Model)=EPSON Version 1.68
Fujitsu M3093GX=FUJIGINE Version 1.130
Fujitsu M3096G=FUJIGINE Version 1.130
Fujitsu M3096GX=FUJIGINE Version 1.130
Fujitsu M3097G=FUJIGINE Version 1.130
Fujitsu M3192B=FUJIGIN3 Version 1.130
Fujitsu ScanPartner 10=FJSP Version 1.130
Fujitsu ScanPartner 10C=FJSP Version 1.130
Fujitsu ScanPartner 600C=FJSP Version 1.130
Fujitsu ScanPartner E.O.=FUJIGIN3 Version 1.130
Fujitsu ScanPartner Jr.=FJSP Version 1.130
HP Scanjet 3c=SCANJET Version 1.40
HP Scanjet 4c=SCANJET Version 1.40
HP Scanjet 4p=SCANJET Version 1.40

<PAGE>   28

HP Scanjet 5p=SCANJET Version 1.40
HP Scanjet IIc=SCANJET Version 1.40
HP Scanjet IIcx=SCANJET Version 1.40
HP Scanjet IIIp=SCANJET Version 1.40
HP Scanjet IIp=SCANJET Version 1.40
HP Scanjet Plus=SCANJET Version 1.40
HP Scanjet=SCANJET Version 1.40
Nikon SCANTOUCH Scanner=NIKON Version 1.12
Panasonic KV-SS25 w/SCSI=PANASCSI Version 1.42
Panasonic KV-SS50 w/SCSI=PANASCSI Version 1.42
Panasonic KV-SS50EX w/SCSI=PANASCSI Version 1.42
Panasonic KV-SS55 w/SCSI=PANASCSI Version 1.42
Panasonic KV-SS55EX w/SCSI=PANASCSI Version 1.42
Panasonic KV-SS60EX w/SCSI=PANASCSI Version 1.42
Panasonic KV-SS60N w/SCSI=PANASCSI Version 1.42
Panasonic KV-SS65EX w/SCSI=PANASCSI Version 1.42
Panasonic KV-SS65N w/SCSI=PANASCSI Version 1.42
Ricoh FS-2=RICOHFS2 Version 1.106
Ricoh IS-410 and IBM 2456=RICOH410 Version 1.58
Ricoh IS-420=RICOH420 Version 1.128
Ricoh IS-430=RICOH420 Version 1.128
Ricoh IS-50=RICOH560 Version 1.106
Ricoh IS-510 and IS-520=RICOH520 Version 1.109
Ricoh IS-60=RICOH560 Version 1.106
Ricoh RS-2200=RS2200 Version 1.107


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