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EXCHANGE COMMISSION.  ASTERISKS DENOTE SUCH OMISSIONS.

								 Exhibit 10.14

Memorandum of Understanding between Nortel and Shiva for the OEM, Development,
	    and Support of the ************************************


The purpose of this M.O.U. is to summarize the discussions between Shiva and 
Nortel to date, and to confirm the respective intent with respect to the 
proposed transaction.  Nortel and Shiva plan to develop and sign a contract, 
by October 15, 1996, which will be based on the terms and conditions as 
outlined in this M.O.U.

Manufacturing Rights

- -  Nortel shall have the option to manufacture the ************************** 
   ********, within the duration of the contract, according to Shiva's design 
   specifications.  A proposed ****** fee, paid to Shiva for the manufacturing 
   license, will be negotiated.  Reasonable manufacturing transfer and
   consulting assistance, will be negotiated.  Shiva will make the final 
   decision as to ******************* the **********.  If ******************** 
   the **************** for *******, the *************************.

- -  With Shiva's agreement, Nortel shall be *********** to manufacture the 
   ***************** Shiva ************* and Shiva's ********************** 
   ***********.  Shiva has the right to ********** from a ******************.

- -  Nortel shall pay Shiva a royalty, as defined in the royalty structure
   section, below, for the ************ shipped to Nortel ********** directly, 
   or via Nortel's ***************************.

Royalty Structure

- -  Nortel shall pay Shiva a royalty equivalent to a **************** of *** of
   the ****** price of the product for volumes of ***** units or greater, over
   a ******** period, or a *************** of **** of the ******* price of the 
   product for volumes less than ****** units, over a ******* period.  In each 
   case, Nortel will pay a ***** of **** royalty for each product within the 
   ********** of the agreement, or for the ********* units (whichever comes 
   first), if the **** or **** royalty is below *****.  After the ********, or 
   ********* units, the *** or *** royalty shall only apply.  Shiva and Nortel 
   will negotiate an ******** royalty structure ***** **** units (or ********, 
   whichever comes first), and for Nortel *********, in the contract.

- -  A three months rolling forecast will be provided on a monthly basis (same 
   as with ********) as well as a first year forecast for business planning 
   purposes, independent of *************** direction.

- -  Prior to Nortel **************, Nortel will work with Shiva to *********** 
   product/components ***************************.  Any ************* or 
   *********************** will be ***************** to Nortel.

Annual Maintenance and Support

- -  Shiva will provide ******** level support to Nortel, for the *************, 
   similar to that described in Section 7 and Exhibit H of the Shiva/Nortel 
   Agreement of May 15, 1995 for the ************ product.

- -  Nortel agrees to pay Shiva ****** for support of the **********, as 



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EXCHANGE COMMISSION.  ASTERISKS DENOTE SUCH OMISSIONS.

   described in Section 7 and Exhibit H of the Shiva/Nortel Agreement of May 
   15, 1995 for the ********* product, in the ************** period, with 
   support fees for subsequent years to be negotiated by the parties.

Shiva Software Upgrades

- -  During the term of any period for which Nortel has paid the agreed-upon 
   annual maintenance and support fee, Shiva agrees to provide all Shiva 
   software upgrades to Nortel *************************************.  Any 
   *************** of Shiva upgrades will be negotiated between the parties.

- -  Nortel will be the ************* of ******************* software to Nortel 
   customers (e.g. alpha trial, beta trial, early adopter trial, release 
   version) ************************************************************ 
   ************************.

Nortel OEM Requirements

- -  Nortel will re-label (Nortel branding) the ****************, similar to the 
   ****************** and ************* products.

- -  Shiva shall, on an ongoing basis, ************** the software, hardware and 
   documentation, as is currently done for the ************.  Details will be 
   identified in the contract.

- -  Shiva shall *********** Nortel's ************* based on ****************** 
   ************* as used for the ****************, for those *************** 
   which both Shiva and Nortel intend ************************************. 
   Nortel will ************************************************************* 
   ************************************************************************* 
   ************************************************************************* 
   ************************************************************************* 
   ************************************************************************* 
   ********************************.

- -  Shiva shall provide Nortel with a project plan for each release of the 
   **************** software and/or hardware (including *************).

- -  Nortel shall have the option to ************** the *********** for specific 
   Nortel customers, requiring ************************.

****************************** Features

- -  It is Nortel's intention to ******************* with ************ features 
   and functions *******************************.  Nortel and Shiva will 
   determine which **************** is most appropriate for ************* the 
   requested features ********************************************************
   ****************************************************************.  These 
   functions will include, but are not limited to, the following:

     *******************************
	 *****************************
     *********************************
	 *****************************
	 ***********************
	 *********************************

Notes:  1. The**************************************** will be sold as part of 
	   the **************** brand.  

Intellectual property rights associated with *********************** that 
***********************************************************************.  



CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND 
EXCHANGE COMMISSION.  ASTERISKS DENOTE SUCH OMISSIONS.

Intellectual property rights associated with ******************************** 
***************************************************************************** 
with ******************************************************** determined by 
agreement between the parties.  Intellectual property rights associated with 
**************************************************************************** 
*************************** with ******************************************* 
*********** determined by agreement between the parties.

This document is a M.O.U. only.  Both parties will, in good faith, adhere to 
the terms and conditions as outlined in this M.O.U. until a contract is 
signed, at which point the contract will be legal and binding and supersede 
this M.O.U.  Both parties agree to negotiate and sign a contract no later than 
October 15, 1996, *********************************************.


/s/ Micky Tsui                            /s/ Ed Gregory
- ------------------------                  -----------------------------
Micky Tsui                                Ed Gregory
AVP Internet Solutions                    VP Business Development
Nortel                                    Shiva Corporation