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                                                                   Exhibit 10.16

                      FIRST AMENDMENT TO LICENSE AGREEMENT

This First Amendment to License Agreement is made and entered into as of the
23rd day of June, 1994, by and between Sun Microsystems, Inc. ("Sun") and Remedy
Corporation ("Licensee").

WHEREAS, Sun and Licensee entered into that certain License Agreement dated
March 11, 1994 (the "License") for the use and occupancy of the premises located
at 1505 Salado Drive, Mt. View, CA (hereinafter "the Premises"), and

WHEREAS, Sun and Licensee desire to amend the License Agreement as hereinafter
provided.

NOW THEREFORE, in consideration of the mutual promises and covenants herein
stated, the parties hereto agree as follows:

 1.  Paragraph 5 is hereby deleted in its entirety and replaced with the
     following: Sun shall provide Licensee with an improvement allowance of up
     to $100,000.00 for modifications to the construction of the Premises
     required for the conduct of Licensee's business. These improvements may
     include: 1) necessary changes or upgrades to the dock and loading area of
     the building; 2) improvements to any form of wiring within any wall; 3)
     carpet and paint; 4) non-bearing wall movement; and 5) and other interior
     modifications required for the conduct of Licensee's business. Any
     improvements or modifications made, which are reimbursable by Sun, must be
     completed by February 28, 1995, or within six (6) months from the date that
     Sun vacates the Premises, whichever is later; and request for reimbursement
     thereof from Licensee must be made on, or before, March 31, 1995. Payment
     shall be made within thirty (30) days after receipt by Sun of an invoice
     for actual costs incurred in making such modifications and proof of payment
     by Licensee to contractors. No modifications, improvements or alterations
     may be made or commenced until Licensee has submitted to Sun a set of
     construction documents. Licensee understands that no modifications,
     improvements or alterations may be made to the Premises without the consent
     of the Lessor, and that Sun must submit all plans and specifications for
     such modifications, improvements or alterations to Lessor. Sun will use
     reasonable efforts to obtain Lessor's consent. Should Lessor request
     removal of any of Licensee's alterations or improvements upon the
     expiration of the License Term, such restoration shall be done at
     Licensee's sole cost and expense prior to the License expiration date of
     June 30, 1996.

Except as set forth in this First Amendment to License Agreement, all of the
terms and provisions of the License Agreement shall apply and shall remain
unmodified and in full force and effect.

IN WITNESS WHEREOF, this First Amendment to License has been executed as of the
day and year first above written.


SUN MICROSYSTEMS, INC.                       REMEDY CORPORATION

By: /s/ Agent of Sun Microsystems            By: /s/ Lawrence L. Garlick
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Its:                                         Its:
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Date: 6/23/94                                Date: 6/15/94
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