Document:

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                                                                   EXHIBIT 10.16

                        INDEPENDENT CONTRACTOR AGREEMENT

         This Independent Contractor Agreement ("Agreement") is made and entered
into by and between Calico Commerce, Inc. ("Company), having a principal place
of business at 333 West San Carlos Street, Suite 333, San Jose, CA 95113, and
Alan P. Naumann ("Contractor"), an individual, having a principal place of
business at 27301 Black Mountain Road, Los Altos Hills, CA 94022. This Agreement
will become effective on the same date as the Separation Agreement and Release
entered into by and between the parties (the "Effective Date").

         1. Retention of Services. Company hereby retains Contractor to perform
sales and marketing and executive transition consulting services when and as
requested by Company.

         2. Compensation.

                  2.1 Fees. Company will pay Contractor aggregate amount of
$290,000 in consideration of the services rendered hereunder. The fee shall be
paid in equal monthly installments of $72,500 per month on each of August 1,
2001, September 1, 2001, October 1, 2001 and November 1, 2001.

                  2.2 Expenses. Contractor shall be responsible for and pay all
expenses incurred in providing services to Company under this Agreement.

         3. Independent Contractor Relationship. Contractor's relationship with
Company will be that of an independent contractor, and nothing in this Agreement
is intended to, or should be construed to, create a partnership, agency, joint
venture or employment relationship. Contractor will not be entitled to any of
the benefits that Company may make available to its employees, including, but
not limited to, group health, life insurance, profit-sharing or retirement
benefits, paid vacation, holidays or sick leave. Contractor will not be
authorized to make any representation, contract or commitment on behalf of
Company unless specifically requested or authorized in writing to do so by the
Chief Executive Officer of Company. Contractor will be solely responsible for
all tax returns and payments required to be filed with, or made to, any federal,
state or local tax authority with respect to the performance of services and
receipt of fees under this Agreement. No part of Contractor's compensation will
be subject to withholding by Company for the payment of any social security,
federal, state or any other employee payroll taxes. Company will regularly
report amounts paid to Contractor by filing a Form 1099-MISC with the Internal
Revenue Service as required by law.

                  3.1 Workplace, Hours and Instrumentalities. Contractor may
perform the services required by this Agreement at any place or location and at
such times as Contractor and Company shall determine. Company will at its
convenience make available to Contractor suitable office space, computer
equipment, and the like, to facilitate the efficient rendering of Contractor's
services to Company. Such facilities shall be used by Contractor, if at all, at
Contractor's discretion.

                  3.2 Confidential Information.

                           (a) Definition of Confidential Information.
"Confidential Information" as used in this Agreement shall mean any and all
technical and non-technical information including patent, copyright, trade
secret, and proprietary information, techniques, sketches,

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drawings, models, inventions, know-how, processes, apparatus, equipment,
algorithms, software programs, software source documents, and formulae related
to the current, future and proposed products and services of Company, Company's
suppliers and customers, and includes, without limitation, Company Property
(defined below), and Company's information concerning research, experimental
work, development, design details and specifications, engineering, financial
information, procurement requirements, purchasing manufacturing, customer lists,
business forecasts, sales and merchandising and marketing plans and information.
Such information will be clearly marked "Confidential" by the Company.

                           (b) Nondisclosure and Nonuse Obligations. Except as
permitted in this paragraph, Contractor shall neither use nor disclose the
Confidential Information. Contractor may use the Confidential Information solely
to perform services for the benefit of Company. Contractor agrees that
Contractor shall treat all Confidential Information of Company with the same
degree of care as Contractor accords to Contractor's own Confidential
Information, but in no case less than reasonable care. If Contractor is not an
individual, Contractor agrees that Contractor shall disclose Confidential
Information only to those of Contractor's employees who need to know such
information, and Contractor certifies that such employees have previously
agreed, either as a condition of employment or in order to obtain the
Confidential Information, to be bound by terms and conditions substantially
similar to those terms and conditions applicable to Contractor under this
Agreement. Contractor agrees not to communicate any information to Company in
violation of the proprietary rights of any third party. Contractor will
immediately give notice to Company of any unauthorized use or disclosure of the
Confidential Information to which he becomes aware, and agrees to assist Company
in remedying any such unauthorized use or disclosure of the Confidential
Information.

                           (c) Exclusions from Nondisclosure and Nonuse
Obligations. Contractor's obligations under Paragraph 4.2(b) ("Nondisclosure and
Nonuse Obligations") with respect to any portion of the Confidential Information
shall not apply to any such portion which Contractor can demonstrate: (a) was in
the public domain at or subsequent to the time such portion was communicated to
Contractor by Company through no fault of Contractor; (b) was rightfully in
Contractor's possession free of any obligation of confidence at or subsequent to
the time such portion was communicated to Contractor by Company; or (c) was
developed by employees of Contractor independently of and without reference to
any information communicated to Contractor by Company. A disclosure of
Confidential Information by Contractor, either: (a) in response to a valid order
by a court or other governmental body; (b) otherwise required by law; or (c)
necessary to establish the rights of either party under this Agreement, shall
not be considered to be a breach of this Agreement or a waiver of
confidentiality for other purposes; provided, however, that Contractor shall
provide prompt prior written notice thereof to Company to enable Company to seek
a protective order or otherwise prevent such disclosure.

                  3.3 Ownership and Return of Company Property. All materials
(including, without limitation, documents, drawings, models, apparatus,
sketches, designs, lists, all other tangible media of expression), equipment,
documents, data, and other property furnished to Contractor by Company, whether
delivered to Contractor by Company or made by Contractor in the performance of
services under this Agreement (collectively, the "Company Property") are the
sole and exclusive property of Company or Company's suppliers or customers, and
Contractor hereby does and will assign to Company all rights, title and interest
Contractor may have or acquire in the Company Property. Contractor agrees to
keep all Company Property at

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Contractor's premises unless otherwise permitted in writing by Company. At the
end of this Agreement, or at Company's request, and no later than five (5) days
after the end of this Agreement or Company's request, Contractor shall destroy
or deliver to Company, at Company's option: (a) all Company Property; (b) all
tangible media of expression in Contractor's possession or control which
incorporate or in which are fixed any Confidential Information; and (c) written
certification of Contractor's compliance with Contractor's obligations under
this subparagraph.

                  3.4 Observance of Company Rules. At all times while on
Company's premises, Contractor will observe Company's rules and regulations with
respect to conduct, health and safety and protection of persons and property.

         4. No Conflict of Interest. Contractor warrants that, to the best of
Contractor's knowledge, there is no other contract or duty on the part of
Contractor that conflicts with or is inconsistent with this Agreement. This
Section 4 does not prevent Contractor from performing the same or similar
services for clients other than Company.

         5. Term and Termination.

                  5.1 Term. This Agreement is effective as of the Effective Date
set forth above and will end on November 15, 2001.

                  5.2 Duties Upon Termination. Upon termination or expiration of
this Agreement, Contractor agrees to cease all work on behalf of Company. Upon
termination by the Company for any reason, all fees described in Section 2.1
above that have not yet been paid to Contractor shall become immediately due and
payable.

         6. Nonsolicitation. During the term of this Agreement, and for a period
of one (1) year immediately following this Agreement's termination or
expiration, Contractor agrees not to, directly or indirectly, separately or in
association with others, interfere with, impair, disrupt or damage Company's
business by soliciting, encouraging or causing others to solicit or encourage
any of Company's employees to discontinue their employment with Company. The
foregoing shall not preclude Contractor from providing a personal employment
reference for departing employees.

         7. General Provisions.

                  7.1 Successors and Assigns. The rights and obligations of
Company under this Agreement shall inure to the benefit of and shall be binding
upon the successors and assigns of Company. Contractor may not assign its
rights, subcontract or otherwise delegate its obligations under this Agreement
without Company's prior written consent; provided, however, that upon
Contractor's death prior to termination or expiration of this Agreement, all
amounts remaining due and payable hereunder shall be paid and assigned to his
heirs.

                  7.2 Survival. The definitions contained in this Agreement and
the rights and obligations contained in Paragraphs 4 ("Intellectual Property
Rights"), 7 ("Noninterference with Business") and 8 ("General Provisions") will
survive any termination or expiration of this Agreement.

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                  7.3 Notices. Any notice required or permitted by this
Agreement shall be in writing and shall be delivered as follows, with notice
deemed given as indicated: (a) by personal delivery, when delivered personally;
(b) by overnight courier, upon written verification of receipt; (c) by telecopy
or facsimile transmission, upon acknowledgment of receipt of electronic
transmission; or (d) by certified or registered mail, return receipt requested,
upon verification of receipt. Notice shall be sent to the addresses set forth
above or to such other address as either party may specify in writing.

                  7.4 Agreement to Arbitrate. The parties agree that any and all
disputes arising out of the terms of this Agreement, their interpretation, and
any of the matters herein released, shall be subject to arbitration in Santa
Clara County, before the American Arbitration Association under its California
Employment Dispute Resolution Rules, or by a judge to be mutually agreed upon.
The arbitrator may grant injunctions and other relief in such disputes. The
decision of the arbitrator shall be final, conclusive and binding on the parties
to the arbitration. The parties agree that the prevailing party in any
arbitration shall be entitled to injunctive relief in any court of competent
jurisdiction to enforce the arbitration award. The parties agree that the
prevailing party in any arbitration shall be awarded its reasonable attorney's
fees and costs. Employee expressly acknowledges that he is waiving any right to
a jury trial for any and all claims covered by this Agreement.

                  7.5 Governing Law. This Agreement shall be governed in all
respects by the laws of the United States of America and by the laws of the
State of California, as such laws are applied to agreements entered into and to
be performed entirely within California between California residents. Each of
the parties irrevocably consents to the exclusive personal jurisdiction of the
federal and state courts located in California, as applicable, except that in
actions seeking to enforce any order or any judgment of such federal or state
courts located in California, such personal jurisdiction shall be nonexclusive.

                  7.6 Severability. If any provision of this Agreement is held
by a court of law to be illegal, invalid or unenforceable, (i) that provision
shall be deemed amended to achieve as nearly as possible the same economic
effect as the original provision, and (ii) the legality, validity and
enforceability of the remaining provisions of this Agreement shall not be
affected or impaired thereby.

                  7.7 Waiver; Amendment; Modification. No term or provision
hereof will be considered waived by either party, and no breach excused by
either party, unless such waiver or consent is in writing signed by the party
against whom the waiver is sought. The waiver by either party of, or consent by
either party to, a breach of any provision of this Agreement by the other party,
shall not operate or be construed as a waiver of, consent to, or excuse of any
other or subsequent breach by such party. This Agreement may be amended or
modified only by mutual agreement of authorized representatives of the parties
in writing.

                  7.8 Entire Agreement. This Agreement constitutes the entire
agreement between the parties relating to this subject matter and supersedes all
prior or contemporaneous oral or written agreements concerning such subject
matter. The terms of this Agreement will govern all services undertaken by
Contractor for Company.

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

CALICO COMMERCE, INC.                    ALAN P. NAUMANN

By: /s/ William D. Unger                 By: /s/ Alan P. Naumann
    -----------------------------            ----------------------------------
    WILLIAM D. UNGER, FOR AND ON             ALAN P. NAUMANN
    BEHALF OF THE BOARD OF DIRECTORS

Date: July 16, 2001                      Date:  July 16, 2001

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                                                                   EXHIBIT 10.17

                              [REGENT PACIFIC MANAGEMENT CORPORATION LETTERHEAD]

July 13, 2001

Mr. Joseph B. Costello, Director
Mr. Joel P. Friedman, Director
Mr. Bernard J. Lacroute, Director
Mr. Alan P. Naumann, Director
Mr. William B. Unger, Director
Calico Commerce, Inc.
333 West San Carlos Street, Suite 300
San Jose, CA 95110

Dear Messrs. Costello, Friedman, Lacroute, Naumann and Unger:

RE:       Retainer Agreement between Regent Pacific Management Corporation and
          Calico Commerce, Inc.

I am writing this letter, pursuant to your request, to set forth the terms and
conditions upon which Regent Pacific Management Corporation, ("Regent
Pacific"), will be engaged to perform certain management services for Calico
Commerce, Inc., a Delaware corporation, and its wholly owned and controlled
subsidiaries (collectively, "Calico"), under certain guarantees and indemnities
to be provided by the company and the board. This agreement is contingent upon
and subject to an indemnification and guarantee agreement, in a form acceptable
to Regent Pacific.

Included within these services will be the following work product, which Regent
Pacific will supply to Calico in accordance with the terms of this letter and
for the agreed-upon cash payments required by this letter;

1.   Regent Pacific agrees to provide a crisis team, to immediately assume the
     chief executive and general management responsibilities of Calico, and to
     develop and implement a restructuring and recovery plan for Calico. The
     goal of this assignment shall be to control the immediate crisis situation
     and redirect the company with respect to the potential financial and
     operational restructuring of the ongoing business of Calico.

2.   Regent Pacific shall provide the services of Gary J. Sbona, Chairman and
     Chief Executive Officer of Regent Pacific Management Corporation, as a
     board-appointed Director and James B. Weil, Principal of Regent Pacific, as
     the board-appointed President and Chief Executive Officer of Calico, who
     shall be a part of the crisis team and jointly lead the engagement on
     behalf of Regent Pacific. Regent
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                              [REGENT PACIFIC MANAGEMENT CORPORATION LOGO]
Mr. Joseph B. Costello, Director
Mr. Joel P. Friedman, Director
Mr. Bernard J. Lacroute, Director
Mr. Alan P. Naumann, Director
Mr. William B. Unger, Director
July 13, 2001
Page 2

     Pacific shall be appointed by the Board of Directors to provide General
     Management services to Calico. Regent Pacific and Messrs. Sbona and Weil
     shall report to the Board of Directors of Calico and shall be solely
     accountable to the Board for fulfilling the obligations of this engagement.

Regent Pacific's services do not include the following activities and/or work
product:

     With the exception of Gary J. Sbona and James B. Weil, Regent Pacific
     personnel provided under the terms of this engagement shall not be
     appointed officers or directors of Calico, and shall not accept nor be
     held accountable for the fiduciary obligations of an officer or director
     of Calico, except as mutually agreed upon by the parties.

Regent Pacific is prepared to begin our services this week, contingent upon:

1.   This duly executed retainer agreement on the part of Calico;

2.   The transfer of and receipt by Regent Pacific of the required initial
     payments of this retainer agreement;

3.   Duly executed indemnification agreement between Calico and Mr. Sbona and
     Mr. Weil, and Calico and Regent Pacific in a form acceptable to Regent
     Pacific.

4.   Duly executed employee stock option agreement in a form acceptable to
     Regent Pacific.

In addition to Mr. Sbona and Mr. Weil, the initial team assigned will be H.
Michael Hogan, Thomas E. Gardner, Chadwick T. Forrest and/or Joseph O. Vogel,
Principals of Regent Pacific. Calico understands that Regent Pacific retains
the right to assign or interchange these people with other people as the work
progresses, in order to address Calico's requirements, as long as the fee paid
for our services is not increased for the included work product.

FEES: We have agreed to provide the work product included in this agreement for
a period of twenty-six (26) weeks of non-cancelable service. This service shall
be $50,000 per week payable in four (4) week increments, each to be paid in
advance of each Regent Pacific standard four-week billing period. It is agreed
and understood between us that the

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                                    [REGENT PACIFIC MANAGEMENT CORPORATION LOGO]

Mr. Joseph B. Costello, Director
Mr. Joel P. Friedman, Director
Mr. Bernard J. Lacroute, Director
Mr. Alan P. Naumann, Director
Mr. William B. Unger, Director
July 13, 2001
Page 3

payments of such cash fees are to be made immediately preceding the start of
each four-week billing period, and that failure to pay such periodic payments
when due shall constitute a breach of this agreement by Calico. It is further
understood that Regent Pacific's fees are to be paid in advance of the work to
be performed, and that the initial payment is to be paid on or before July 16,
2001. It is further agreed that such cash payments are earned in full upon
receipt by Regent Pacific, by virtue of our accepting this agreement and the
responsibilities it entails, and are nonrefundable.

ADVANCE RETAINER:  In the light of the uncertainty of the situation facing
Calico, Calico agrees to pay Regent Pacific an advance four (4) weeks retainer
for services which may be rendered and expenses which may be incurred in
connection with this engagement. The amount of that retainer is to be in the
sum of $200,000. The funds shall be deposited in an escrow account titled
"Regent Pacific Management Corporation, for the benefit of Calico." Immediately
prior to any cancellation by Calico prior to the expiration of the
non-cancelable period or, thereafter, without 60 days written notice, or
immediately upon the filing of any petition in bankruptcy by or against Calico,
the retainer, plus any interest earned thereon, shall become the property of
Regent Pacific, free and clear of any claims of Calico, and shall be
transferred to Regent Pacific's general account. In such an event the retainer
shall be deemed earned in full by virtue of Regent Pacific's undertaking this
engagement and be nonrefundable. This sum is in addition to and not in
satisfaction of any damages which Regent Pacific may otherwise recover against
Calico for breach of this agreement, and reflects Calico's agreement that the
retainer represents the minimum fee for Regent Pacific's acceptance of the
agreement and the work undertaken, irrespective of the amount of time actually
spent by Regent Pacific in the course of its employment. In the event that this
agreement expires upon completion of the term, or terminates in accordance with
its cancellation provisions, the escrow account, plus any interest, will be
returned to Calico within five business days after such expiration or
termination.

STOCK OPTIONS: In addition to the cash fees payable to Regent Pacific under the
terms of this agreement, it is agreed that Calico will grant options to Gary J.
Sbona and/or his designee from time to time, initially as an inducement for
employment and subsequently as an incentive for agreeing to extend the term of
this agreement. The initial stock option grant to Gary J. Sbona, dated July 16,
2001, will be the greater of two million five hundred thousand (2,500,000)
shares of Calico common stock or six and one-half (6.5%) percent of the fully
diluted, and inclusive of the Regent Pacific grant, basis of the outstanding
shares of Calico stock at the market closing price as of that date. The terms
of this option grant and of any subsequent option grant, shall include but not
be limited to a) vesting to
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                                    [REGENT PACIFIC MANAGEMENT CORPORATION LOGO]

Mr. Joseph B. Costello, Director
Mr. Joel P. Friedman, Director
Mr. Bernard J. Lacroute, Director
Mr. Alan P. Naumann, Director
Mr. William B. Unger, Director
July 13, 2001
Page 4

commence immediately after the grant date, (b) vesting to be monthly over a
period of one year, or the remaining term of the Agreement, whichever is less.
Additionally, all of the shares subject to the option will vest automatically
upon (i) the consummation of a sale of all or substantially all of the assets of
the Company, (ii) a merger of the Company with or into another corporation in
which the stockholders of the Company immediately before the transaction do not
own, directly or indirectly, a majority of the voting stock of the Company or
the surviving entity immediately following the transaction, or (iii) termination
of employment by the Company without cause. For these purposes, "cause" will be
defined to mean (i) Optionee's violation of any material provision of the
Company's standard agreement relating to proprietary rights, (ii) any act of
theft or dishonesty, (iii) any immoral or illegal act which has a detrimental
effect on this business or reputation of the Company or any Participating
Company, or (iv) any material failure to use reasonable efforts to perform
reasonably requested tasks after written notice and a reasonable opportunity to
comply with such notice. Stock options in addition to those referenced in this
amendment may be granted to Gary J. Sbona and/or his designee from time to time
at the sole discretion of Calico Board of Directors.

TERM OF AGREEMENT: The term of this agreement shall be for twenty-six (26)
weeks of non-cancelable service, unless earlier terminated in accordance with
this paragraph. Regent Pacific hereby commits the availability of its
resources to Calico under this agreement for the full twenty-six (26) week term
of the engagement. Calico may discharge Regent Pacific at any time after the
non-cancelable period provided that Calico had delivered 60-day written notice
of intent to cancel this agreement. Regent Pacific may withdraw from this
assignment at any time with Calico's consent or for good cause without Calico's
consent. Good cause includes Calico's breach of this agreement (including
Calico's failure to pay any invoice within five working days of presentation),
or any fact or circumstance that would render our continuing participation in
the assignment unethical or unlawful.

EXPENSE REIMBURSEMENT: In addition to the fees, any requests for compensation
will also include certain charges for costs and expenses. Such costs and
expenses will include, among others, charges for messenger services, air
couriers, word processing services, photocopying, airfare, travel and
reasonable living expenses, postage, long distance telephone, legal advice, and
other charges customarily invoiced by professional firms for reimbursement of
out-of-pocket expenses. Said expenses shall not include meal expenses except
when Regent Pacific professionals are engaged in business-related activities
and company travel. Regent Pacific will periodically present invoices to Calico
for
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                                    [REGENT PACIFIC MANAGEMENT CORPORATION LOGO]

Mr. Joseph B. Costello, Director
Mr. Joel P. Friedman, Director
Mr. Bernard J. Lacroute, Director
Mr. Alan P. Naumann, Director
Mr. William B. Unger, Director
July 13, 2001
Page 5

reimbursement of such charges, and Calico agrees to pay such invoices within
five (5) working days of presentation.

We will provide regular progress reviews to Calico and its Board of Directors at
approximately biweekly intervals, as the work progresses. These progress reviews
will include a discussion of the alternatives available to Calico, the
performance of the company relative to the restructuring of the ongoing
business. In addition, Regent Pacific requires, and Calico agrees, that the
Board of Directors of Calico will be available to Regent Pacific on a reasonable
consultation and communication basis and will meet with Regent Pacific in person
in regularly scheduled monthly board meetings to review the status of the
engagement.

During the progress of the work, should circumstances warrant, we may apply for
additions to the retainer fees, and attendant increases in the payments
scheduled above. Should we seek such additional compensation in order to
continue the level of effort required by the undertaking, we will do so based
upon our professional guideline hourly rates. We understand and acknowledge that
nothing in this agreement obligates Calico to pay such additional retainer fees
or other compensation unless the Calico Board of Directors shall have agreed to
make such payments after a written request by Regent Pacific. As you know, our
professional guideline hourly rates range from $275 to $500. Our guideline
hourly rates are adjusted periodically, typically on January 1 of each year, to
reflect the advancing experience, capabilities and seniority of our
professionals as well as general economic factors.

Because of the breadth and nature of our practice, from time to time our firm
may work for one client whose interest may be opposed to that of another client,
for which we work in an unrelated matter. Please be assured that, despite any
potential difference in the interests of our clients, we strictly preserve all
client confidences and zealously pursue the interests of each of our clients.
Calico agrees that it does not consider such concurrent work in unrelated
matters of Calico and any other client of Regent Pacific to be inappropriate,
and therefore waives any objections to any such present or future concurrent
assignments provided, however, that such waiver shall not apply to any willful
misconduct or breach of confidentiality obligations of Regent Pacific hereunder.

Except in the case of willful misconduct or gross negligence, Calico shall
indemnify, defend, and hold Regent Pacific, its officers, directors, principals,
associates, affiliates, employees, agents, and counsel, harmless against any
damages, costs, fines, penalties, liabilities,
<PAGE>   6
                                    [REGENT PACIFIC MANAGEMENT CORPORATION LOGO]

Mr. Joseph B. Costello, Director
Mr. Joel P. Friedman, Director
Mr. Bernard J. Lacroute, Director
Mr. Alan P. Naumann, Director
Mr. William B. Unger, Director
July 13, 2001
Page 6

attorneys' and other professional fees and disbursements, suffered, incurred by,
or asserted against, Regent Pacific, its officers, directors, principals,
associates, affiliates, employees, agents, and/or counsel, including any amounts
incurred or paid in settlement or any judgment of any action, suit, or
proceeding brought under any statute, at common law, or otherwise, which arises
under or in connection with the performance by Regent Pacific of services
pursuant to this agreement and any amendment or modification thereto. The
obligations of Calico under this paragraph are hereinafter collectively referred
to as "Indemnity Obligations." The Indemnity Obligations shall survive, for a
period of five (5) years, any termination of Regent Pacific's services under
this agreement and any amendment or modification thereto. Calico agrees to
promptly tender any payments due to Regent Pacific, its officers, directors,
principals, associates, affiliates, employees, agents, and/or counsel, under or
in respect of the Indemnity Obligations, within three (3) business days
following written demand by Regent Pacific, its officers, directors, principals,
associates, affiliates, employees, agents, and/or counsel. Calico's Indemnity
Obligations shall not apply to amounts paid in settlement of any loss, claim,
damage, liability, or action if such settlement is effected without the consent
of Calico, which consent shall not be unreasonably withheld.

CONFIDENTIAL INFORMATION: Regent Pacific and its team of crisis managers shall
have access under this agreement to certain proprietary and/or confidential
information with respect to Calico's business. Regent Pacific hereby agrees to
protect such confidential information as though it were Regent Pacific's own
confidential information, in accordance with the following terms and conditions:

1.   Calico shall permit Regent Pacific to review financial and proprietary
     information necessary to Regent Pacific's participation in Calico's
     management.

2.   Calico shall permit, and Regent Pacific shall require, review of all Calico
     Board of Directors minutes and all executive actions taken within the three
     months prior to the execution of this agreement.

3.   Regent Pacific shall maintain the confidentiality of all such information
     and prevent the unauthorized disclosure thereof. No such information shall
     be made available for the use of any other party or be divulged to others
     unless it:

     a.   is independently developed by Regent Pacific, provided that the person
          or persons developing same have had no access to confidential
          information received from Calico;

<PAGE>   7
                                   [REGENT PACIFIC MANAGEMENT CORPORATION LOGO]

Mr. Joseph B. Costello, Director
Mr. Joel P. Friedman, Director
Mr. Bernard J. Lacroute, Director
Mr. Alan P. Naumann, Director
Mr. William B. Unger, Director
July 13, 2001
Page 7

     b.   is or becomes publicly available; or

     c.   is rightfully and lawfully received by Regent Pacific from an
          independent third party.

This agreement is made under the laws of the State of California. If any legal
action arises under this Agreement or by reason of an asserted breach of it,
the prevailing party shall be entitled to recover all costs and expenses,
including reasonable attorney's fees, incurred in enforcing or attempting to
enforce the terms of this agreement.

NON-SOLICITATION: in recognition of the fact that the Regent Pacific
individuals that we provide to Calico under this agreement may perform similar
services from time to time for others, this agreement shall not prevent Regent
Pacific from performing such similar services or restrict Regent Pacific from
using such individuals. Calico agrees that it shall not, except by mutual
agreement between the parties, during the term of this agreement nor for a
period of three (3) years after its termination, solicit for employment nor
employ, whether as employee or independent contractor or agent, any person who
performs services under this agreement. It is agreed that in the event of a
breach of this paragraph by Calico, it would be impractical or extremely
difficult to fix actual damages and, therefore, Regent Pacific and Calico agree
that if Calico breaches this paragraph, then Calico shall pay to Regent Pacific
$390,000 per individual solicited or employed as employee, independent
contractor or agent, as Liquidated Damages and not as a penalty, which is
agreed by Regent Pacific and Calico to represent reasonable compensation for
the foreseeable loss that will, in all likelihood, be incurred because of such
breach.

This constitutes the entire understanding between Regent Pacific and Calico
regarding our services. Further, this agreement supersedes and replaces any
prior agreement(s) between the parties. By executing this agreement you
acknowledge that you have read it carefully and understand all of its terms.
This agreement cannot be modified except by further written agreement signed by
each party.

If you have any questions about the foregoing, please call me. If Calico is in
agreement with the foregoing, and it accurately represents your understanding of
the agreement between Calico and our firm, please approve the enclosed copy of
this letter, and return the approved copy to me, along with the advance retainer
of $200,000 and the first four (4) week service fee of $200,000. Said payments
may be wire-transferred to the account of
<PAGE>   8
                                    [REGENT PACIFIC MANAGEMENT CORPORATION LOGO]
Mr. Joseph B. Costello, Director
Mr. Joel P. Friedman, Director
Mr. Bernard J. Lacroute, Director
Mr. Alan P. Naumann, Director
Mr. William B. Unger, Director
July 13, 2001
Page 8

Regent Pacific Management Corporation at Comerica Bank, 333 West Santa Clara
Street, San Jose, CA 95113, Account #1890652975, Routing number 121137522. Our
contact there is Zona Peterson at (408) 556-5367. If there are any questions
with regard to the terms set forth herein, kindly contact me immediately. In
order to maintain continuity in scheduling of our resources, we ask that we
receive your affirmative response as soon as possible. In any event, this offer
to provide our services will expire on July 16, 2001 unless accepted by you
prior to that date, or extended in writing by an officer of Regent Pacific.
Please understand that we can assume no responsibility in connection with the
services to be provided under this agreement until the signed copy has been
returned and the required funds as agreed to by us have been received.

Very truly yours,

REGENT PACIFIC MANAGEMENT CORPORATION

Gary J. Sbona
Chairman and Chief Executive Officer

THE FOREGOING IS HEREBY APPROVED AND AGREED TO:

DATED: July 22, 2001

CALICO COMMERCE, INC.
(Signifies full agreement with all terms and conditions)

BY:  /s/ William B. Unger
     ---------------------------------------------
     Mr. William B. Unger          Title: Director
     On Behalf of the Board of Directors

BY:  /s/ Joel P. Friedman
     ---------------------------------------------
     Mr. Joel P. Friedman          Title: Director
     On Behalf of the Board of Directors

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