Document:

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                                                                   EXHIBIT 10.6

THESE  SECURITIES HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"),  OR UNDER ANY STATE  SECURITIES  LAWS. THESE SECURITIES ARE
SUBJECT  TO  RESTRICTIONS  ON  TRANSFERABILITY   AND  RESALE  AND  MAY  NOT  BE
TRANSFERRED, SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A
REGISTRATION  STATEMENT IN EFFECT WITH RESPECT TO THESE SECURITIES UNDER THE ACT
OR APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY THAT ANY PROPOSED  TRANSFER OR RESALE IS IN COMPLIANCE  WITH THE ACT AND
ANY APPLICABLE STATE SECURITIES LAWS.

                       SECURED CONVERTIBLE PROMISSORY NOTE

                                       OF

                              CALDERA SYSTEMS, INC.

$2,000,000                                                     September 1, 1998

      Caldera Systems, Inc., a Utah corporation (the "COMPANY"), for value
received, hereby promises to pay to The Canopy Group, Inc., a Utah corporation
(the "NOTEHOLDER"), at 240 West Center Street, Orem, Utah 84057, or its assigns,
the sum of Two Million Dollars ($2,000,000), or such other or greater amount as
may be outstanding, plus interest accrued on unpaid principal, compounded
annually, at a rate per annum, calculated initially on the date of this secured
convertible promissory note (this "NOTE") and recalculated on the date of each
annual anniversary convertible of this Note (each such date, a "CALCULATION
DATE"), equal to the prime rate (as determined by the Federal Reserve on such
Calculation Date) less one-half percent (1/2%), from the date of this Note
until the principal amount hereof and all interest accrued thereon is paid (or
converted, as provided in Section 2 hereof). The initial interest rate of
provided this Note shall be 7.25%. The principal amount of this Note, and the
interest accrued thereon, shall be payable at the principal offices of the
Noteholder or by mail to the registered address of the holder of this Note on
the earliest to occur of (i) thirty (30) days after demand, (ii) a default under
this Note in accordance with Paragraph 8 below, (iii) a default as that term
defined in the Security Agreement executed herewith, and (iv) the date thirty
(30) days after the date of any breach by the Company of any agreement with the
Noteholder and/or any affiliate of the Noteholder, unless this Note shall have
been previously converted pursuant to Section 2 hereof or as provided otherwise
in this Note.

      The following is a statement of the rights of the holder of this Note and
the conditions to which this Note is subject, and to which the holder hereof, by
the acceptance of this Note, agrees:

      1. DEFINITIONS. The following definitions shall apply for all purposes of
this Note:

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            1.1 "COMPANY" shall mean the Company as defined above and includes
any corporation which shall succeed to or assume the obligations of the Company
under this Note.

            1.2 "CHANGE OF CONTROL TRANSACTION" shall mean a merger,
acquisition, or other business combination in which fifty percent (50%) or more
of the Company's outstanding voting stock is transferred to different holders in
a single transaction or a series of related transactions; provided, however,
that an acquisition by the Noteholder (including its affiliates) of all or
substantially all of the voting securities of the Company shall not constitute a
Change of Control Transaction for the purposes hereunder.

            1.3 "CONVERSION DATE" shall mean the date on which, pursuant to
Sections 2 and 3 hereof, the Noteholder exercises its right to convert this Note
into the Conversion Stock at the Note Conversion Price.

            1.4 "CONVERSION STOCK" shall mean the shares of common stock, no par
value, of the Company. The number and character of shares of Conversion Stock
are subject to adjustment as provided herein and the term "Conversion Stock"
shall include shares and other securities and property at any time receivable or
issuable upon conversion of this Note in accordance with its terms.

            1.5 "NOTE CONVERSION PRICE" shall be $1.00 per share (after giving
effect to the 2-1 forward stock split effected by the Articles of Restatement of
the Company dated November 19, 1998).

            1.6 "NOTEHOLDER," "HOLDER," or similar terms, when the context
refers to a holder of this Note, shall mean any person who shall at the time be
the registered holder of this Note.

      2. CONVERSION.

            2.1   (a) Conversion of Note. At any time, the Noteholder shall have
the right, at the holder's option, to convert the principal and accrued interest
on this Note, in whole or in part, into Conversion Stock at the Note Conversion
Price. Conversion under this Section 2 shall occur only upon surrender of this
Note for conversion at the principal offices of the Company, accompanied by
written notice of election to convert.

                  (b) Conversion in the Event of Prepayment or Payment of Note.
The Company shall have the right to prepay the entire principal balance, plus
accrued interest, due under the Note at any time prior to the maturity date if
the Note. The Noteholder shall have no obligation to accept any payment less
than the entire principal balance, plus accrued interest. At such time that the
Company has funds immediately available and elects to pay the entire principal
balance and accrued interest (whether as a prepayment or payment at or after
maturity of this Note), the Noteholder shall have fifteen (15) days from the
receipt of notice of the Company's election to pay off the Note to convert the
Note into Conversion Stock at the Note Conversion Price.

            2.2 Certain Transactions. The Company shall give written notice to
the

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Noteholder of any Change of Control Transaction at least twenty (20) business
days prior to the date on which such Change of Control Transaction shall take
place. Prior to the closing of such Change of Control Transaction, the Company
shall, at Noteholder's election, either (i) repay all unpaid principal and
interest under this Note or (ii) convert this Note into Conversion Stock at the
Note Conversion Price.

      3. ISSUANCE OF CONVERSION STOCK. As soon as practicable after conversion
of this Note, the Company, at its expense, will cause to be issued in the name
of and delivered to the holder of this Note, a certificate or certificates for
the number of shares of Conversion Stock to which the holder shall be entitled
upon such conversion (bearing such legends as may be required by applicable
state and federal securities laws in the opinion of legal counsel of the
Company), together with any other securities and property to which the holder is
entitled upon such conversion under the terms of this Note. Such conversion
shall be deemed to have been made (i) under Section 2 above and (ii) immediately
prior to the close of business on the date that the Note shall have been
surrendered for conversion, accompanied by written notice of election to
convert. No fractional shares will be issued upon conversion of this Note. If
upon any conversion of this Note a fraction of a share would otherwise result,
then, in lieu of such fractional share, the Company will pay the cash value of
that fractional share, calculated on the basis of the applicable Note Conversion
Price.

      4. ADJUSTMENT OF NUMBER OF SHARES. The number and character of shares of
Conversion Stock issuable upon conversion of this Note (or any shares of stock
or other securities or property at the time receivable or issuable upon
conversion of this Note) are subject to adjustment upon the occurrence of any of
the following events:

            4.1 Adjustment for Stock Splits, Stock Dividends, Recapitalizations,
etc. In the event that the Company shall fix a record date for the determination
of holders of securities affected by any stock split, stock dividend,
reclassification, recapitalization or other similar event that will, in the
future, affect the number of outstanding shares of the Company's capital stock,
then, and in each such case, the Noteholder, upon conversion of this Note at any
time after the Company shall fix the record date for such event, shall receive,
in addition to the shares of Conversion Stock issuable upon conversion on the
Conversion Date, the right to receive the securities of the Company to which
such holder would have been entitled if such holder had converted this Note
immediately prior to such record date (all subject to further adjustment as
provided in this Note).

            4.2 Adjustment for Dividends and Distributions. In the event that
the Company shall make or issue, or shall fix a record date for the
determination of eligible holders of securities entitled to receive, a dividend
or other distribution payable with respect to the Conversion Stock (or any
shares of stock or other securities at the time issuable upon conversion of this
Note) that is payable in (a) securities of the Company other than capital stock
or (b) any other assets, then, and in each such case, the Noteholder, upon
conversion of this Note at any time after the consummation, effective date or
record date of such event, shall receive, in addition to the shares of
Conversion Stock (or such other stock or securities) issuable upon such
conversion prior to such date, the securities or such other assets of the
Company to which such holder would have been entitled upon such date if such
holder had converted this Note immediately prior thereto (all subject to further
adjustment as provided in this Note).

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<PAGE>   4
            4.3 Adjustment for Reorganization, Consolidation, Merger. In the
event of any reorganization not considered a Change of Control Transaction of
the Company (or any other corporation the stock or other securities of which are
at the time receivable upon the conversion of this Note) after the date of this
Note, or in the event, after such date, the Company (or any such corporation)
shall consolidate with or merge into another corporation or convey all or
substantially all of its assets to another corporation where such transaction is
not considered a Change of Control Transaction, then, and in each such case, the
Noteholder, upon the conversion of this Note (as provided in Section 2) at any
time after the consummation of such reorganization, consolidation, merger or
conveyance, shall be entitled to receive, in lieu of the stock or other
securities and property receivable upon the conversion of this Note prior to
such consummation, the stock or other securities or property to which such
Noteholder would have been entitled upon the consummation of such
reorganization, consolidation, merger or if such holder had converted this Note
immediately prior thereto, all subject to further adjustment as provided in this
Section 4, and the successor or purchasing corporation in such reorganization,
consolidation, merger or conveyance (if other than the Company) shall duly
execute and deliver to the Noteholder a supplement hereto acknowledging such
corporation's obligations under this Note. In each such case, the terms of the
Note shall be applicable to the shares of stock or other securities or property
receivable upon the conversion of this Note after the consummation of such
reorganization, consolidation, merger or conveyance.

            4.4 Conversion of Stock. In the event that all of the authorized
Conversion Stock of the Company is converted, pursuant to the Company's Articles
of Incorporation, into other capital stock or securities or property, or the
Conversion Stock otherwise ceases to exist, then the Noteholder, upon conversion
of this Note at any time after the date on which the Conversion Stock is so
converted or ceases to exist (the "TERMINATION DATE"), shall receive, in lieu of
the number of shares of Conversion Stock that would have been issuable upon such
conversion immediately prior to the Termination Date (the "FORMER NUMBER OF
SHARES OF CONVERSION STOCK"), the stock and other securities and property to
which such Noteholder would have been entitled to receive upon the Termination
Date if such holder had converted this Note with respect to the Former Number of
Shares of Conversion Stock immediately prior to the Termination Date (all
subject to further adjustment as provided in this Note).

            4.5 Notice of Adjustments. The Company shall promptly give written
notice of each adjustment or readjustment of the number of shares of Conversion
Stock or other securities issuable upon conversion of this Note, by first class
mail, postage prepaid, to the registered holder of this Note at the holder's
address as shown on the Company's books. The notice shall describe the
adjustment or readjustment and show in reasonable detail the facts on which the
adjustment or readjustment is based.

            4.6 No Change Necessary. The form of this Note need not be changed
because of any adjustment in the number of shares of Conversion) Stock issuable
upon its conversion.

            4.7 Reservation of Stock. The Company has taken all necessary
corporate action and obtained all necessary Government consents and approvals to
authorize the issuance of this Note and, prior to the conversion hereof, the
shares of Conversion Stock issuable upon

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conversion of this Note. If at any time the number of authorized but unissued
Common Shares or other securities shall not be sufficient to effect the
conversion of this Note, then the Company will take such corporate action as
may, in the opinion of its legal counsel, be necessary to increase its
authorized but unissued Common Shares or other securities to such number of
shares of Common Shares or other securities as shall be sufficient for such
purpose.

      5. FULLY PAID SHARES. All shares of Conversion Stock issued upon the
conversions this Note shall be validly issued, fully paid and non-assessable.

      6. NO RIGHTS OR LIABILITIES AS SHAREHOLDER. This Note does not by itself
entitle the Noteholder to any voting rights or other rights as a shareholder of
the Company. In the absence of conversion of this Note, no provisions of this
Note, and no enumeration herein of the rights or privileges of the holder, shall
cause such holder to be a shareholder of the Company for any purpose.

      7. CORPORATE ACTION; NO IMPAIRMENT. The Company will not, by amendment of
its Articles of Incorporation or bylaws, or through reorganization,
consolidation, merger, dissolution, issue or sale of securities, repurchase of
securities, sale of assets or any other action, avoid or seek to avoid the
observance or performance of any of the terms of this Note, but will at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such action as may be necessary or appropriate in order to protect
the rights of the Noteholder under this Note against wrongful Impairment. The
Company shall not amend its Articles of Incorporation or issue any capital stock
or options to purchase any capital stock of the Company without the prior
written consent of the Noteholder.

      8. DEFAULT. The Company will be in default if the Company fails to make
any payment when due hereunder. The Company will also be in default if any of
the following occurs and such default is not cured within a ten (10) day period
after the Noteholder has given the Company written notice of such default:

            (a) The Company breaches any material obligation to the Noteholder
hereunder.

            (b) A receiver is appointed for any part of the Company's property,
the Company makes an assignment for the benefit of creditors, or any proceeding
is commenced either by the Company or against the Company under any bankruptcy
or insolvency laws.

            (c) The Company materially defaults under the Security Agreement
referred to in Section 9 below.

            (d) The Company suspends its normal business operations or otherwise
fails to continue to operate its business in the ordinary course.

In the event of a default under this Section 8, Noteholder shall, in addition to
any other remedies allowed by law, be entitled to accelerate all unpaid
principal and interest under this Note.

      9. SECURITY AGREEMENT. This Note is secured by a security interest in
certain

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collateral, which security interest was granted by the Company to the original
holder of the Note pursuant to the terms of a certain security agreement (the
"SECURITY AGREEMENT"), dated on or about the date of this Note, are among the
original holder of the Note and the Company, and are incorporated herein by this
reference.

      10. REVOLVING LINE OF CREDIT. This Note evidences a revolving line of
credit. Advances under this Note may be requested orally by any Company officer
or other authorized person. The Noteholder may, but need not, require that all
oral requests be confirmed in writing. The Company agrees to be liable for all
sums advanced in accordance with the instructions of its officers or authorized
persons. The unpaid principal balance owing on this Note at any time may be
evidenced by endorsements on this Note, by a Schedule attached to this Note, or
by The Noteholder's internal records, including computer printouts. The
Noteholder will have no obligation to advance funds under this Note and may
decline to make future advances for any reason or no reason.

      11. WAIVER AND AMENDMENT. ANY PROVISION OF THIS NOTE MAY BE AMENDED,
WAIVED, MODIFIED, DISCHARGED OR TERMINATED SOLELY UPON THE WRITTEN CONSENT OF
BOTH THE COMPANY AND THE NOTEHOLDER.

      12. ASSIGNMENT; BINDING, UPON SUCCESSORS AND ASSIGNS. The Company may not
assign any of its obligations hereunder without the prior written consent of
Noteholder. The terms and conditions of this Note shall inure to the benefit of
and be binding upon the successors and permitted assigns of the parties.

      13. WAIVER OF NOTICE; ATTORNEYS' FEES. The Company and all endorsers of
this Note hereby waive notice, demand, notice of nonpayment, presentment,
protest and notice of dishonor. If any action at law or in equity is necessary
to enforce this Note or to collect payment under this Note, the Noteholder shall
be entitled to recover, as an element of the costs of suit and not as damages,
reasonable attorneys' fees, costs and necessary disbursements in addition to any
other relief to which it may be entitled. Noteholder will be entitled to recover
its costs of suit, regardless of whether such suit proceeds to final judgment.

      14. CONSTRUCTION OF NOTE. The terms of this Note have been negotiated by
the Company, the original holder of this Note and their respective attorneys and
the language hereof will not be construed for or against either Company or
Noteholder. Unless otherwise explicitly set forth, a reference to a Section will
mean a Section in this Note. The titles and headings herein are for reference
purposes only and will not in any manner limit the construction of this Note
which will be considered as a whole.

      15. NOTICES. Any notice or other communication required or permitted to be
given under this Note shall be in writing, shall be delivered by hand or
overnight courier service, by certified mail, postage prepaid, or by facsimile,
and will be deemed given upon delivery, delivered personally, one business day
after deposit with a national courier service for overnight delivery, or one
business day after transmission by facsimile with confirmation of receipt, and
three days after deposit in the mails, if mailed, to the following addresses:

            (i) If to the Noteholder:

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                  The Canopy Group
                  240 West Center Street
                  Orem, Utah 84057

            (ii) If to Company:

                  Systems, Inc.
                  240 West Center Street
                  Orem, Utah 84057

or to such other address as may have been furnished to the other party in
Section 15, except that notices of change of address shall only be effective
upon receipt.

      16. GOVERNING LAW. This Note shall be governed by and construed under the
internal laws of the United States and the State of Utah as applied to
agreements among Utah residents entered into and to be performed entirely within
Utah, without reference to principles of conflict of laws or choice of laws.

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<PAGE>   8

      IN WITNESS WHEREOF, the Company has caused this Note to be signed in its
name as of the date first above written.

                                             CALDERA SYSTEMS, INC.

                                             By: /s/ RANSOM H. LOVE
                                                --------------------------------

                                             Name: Ransom H. Love
                                                  ------------------------------

                                             Title: President & CEO
                                                   -----------------------------

                                       8<PAGE>   1
                                                                   EXHIBIT 10.7
                               SECURITY AGREEMENT

            THIS SECURITY AGREEMENT (the "Security Agreement") is entered into
as of September 1, 1998, by and between CALDERA SYSTEMS, INC., a Utah
corporation (the "Company"), and THE CANOPY GROUP, INC., a Utah corporation
("Secured Party").

                                    RECITALS

      A. Company has borrowed funds and may borrow through subsequent advances
additional funds, from Secured Party pursuant to a $2,000,000 Secured
Convertible Promissory Note of even date herewith (the "Note").

      B. As security for its repayment obligations under the Note, Company has
agreed to grant Secured Party a security interest in all of its assets on the
terms set forth in this Security Agreement.

            NOW, THEREFORE, to that end and in consideration of the premises,
covenants and agreements set forth below, and the mutual benefits to be derived
from this Security Agreement, and other good and valuable consideration, the
parties hereto agree as follows:

            1. SECURITY INTEREST. To secure the "Obligation" (as defined below),
Company hereby transfers, conveys, assigns, and grants to Secured Party a
security interest in all of Company's assets, which may include one or more of
the following items (hereinafter, collectively, the "Collateral"):

                  (a) GENERAL INTANGIBLES. All of Company's General Intangibles,
now existing or hereafter arising or acquired, together with the proceeds
therefrom. As used herein, the term "General Intangibles" means all personal
property (including things in action) other than goods, accounts, chattel paper,
documents, instruments, and money, and includes, but is not limited to, business
records, deposit accounts, inventions, intellectual property, designs, patents,
patent applications, trademarks, trademark applications, trademark
registrations, service marks, service mark applications, service mark
registrations, trade names, goodwill, technology, knowhow, confidential
information, trade secrets, customer lists, supplier lists, copyrights,
copyright applications, copyright registrations, licenses, permits, franchises,
tax refund claims, and any letters of credit, guarantee claims, security
interests, or other security held by the Company to secure any "Accounts" (as
hereinafter defined).

                  (b) ACCOUNTS (INCLUDING ACCOUNTS RECEIVABLE). All of Company's
Accounts, whether now existing or hereafter arising or acquired, together with
the proceeds therefrom. As used herein, the term "Accounts" means any right of
Company to receive payment from another person or entity, including payment for
goods sold or leased, or for services rendered, no matter how evidenced or
arising, and regardless of whether yet earned by performance. It includes, but
is not limited to, accounts, accounts receivable, contract rights,

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contracts receivable, purchase orders, notes, drafts, acceptances, all rights to
payment earned or unearned under a charter or other contract involving the use
or hire of a vessel and all rights incident to the charter or contract, and
other forms of obligations and receivables.

                  (c) INVENTORY. All of Company's Inventory, whether now owned
or hereafter acquired, together with the products and proceeds therefrom and all
packaging, manuals, and instructions related thereto. As used herein, the term
"Inventory" means all goods, merchandise, and personal property held for sale or
leased or furnished or to be furnished under contracts of service, and all raw
materials, work in process, or materials used or consumed in Company's business,
wherever located and whether in the possession of Company, a warehouseman, a
bailee, or any other person.

                  (d) EQUIPMENT. All of Company's Equipment, now owned or
hereafter acquired, together with the products and proceeds therefrom, and all
substitutes and replacements therefor. As used herein, the term "Equipment"
includes all equipment, machinery, tools, office equipment, supplies,
furnishings, furniture, or other items used or useful, directly or indirectly,
in Company's business, all accessions, attachments, and other additions thereto,
all parts used in connection therewith, all packaging, manuals, and instructions
related thereto, and all leasehold or equitable interests therein.

                  (e) FIXTURES. All of Company's interest in and to all fixtures
and furnishings, now owned or hereafter acquired, together with the products and
proceeds therefrom, all substitutes and replacements therefor, all accessories,
attachments, and other additions thereto, all tools, parts, and supplies used in
connection therewith, and all packaging, manuals, and instructions related
thereto, located on or attached to Company's business premises located at 240
West Center, Orem, Utah 84058.

                  (f) CHATTEL PAPER, DOCUMENTS AND INSTRUMENTS. All of Company's
right, title, and interest in any chattel paper, documents, or instruments, now
owned or hereafter acquired or arising, or now or hereafter coming into the
possession, control, or custody of either Company or Secured Party, together
with all proceeds therefrom. The terms "chattel paper," "documents," and
"instruments" shall have those meanings ascribed to them in the Utah Uniform
Commercial Code.

            2. OBLIGATION. This security interest is given as security for all
indebtedness and obligations owed by Company to Secured Party, whether now
existing or hereafter incurred, under this Security Agreement or the Note,
together with all extensions, modifications, or renewals thereof (hereinafter
referred to, collectively, as the "Obligation").

            3. PROCEEDS. As used in this Security Agreement, the term "proceeds"
means all products of the Collateral and all additions and accessions to,
replacements of, insurance or condemnation proceeds of, and documents covering
any of the Collateral, all property received wholly or partly in trade or
exchange for any of the Collateral, all leases of any of the Collateral, and all
rents, revenues, issues, profits, and proceeds arising from the sale, lease,
license, encumbrance, collection, or any other temporary or permanent
disposition, of any of the Collateral or any interest therein.

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<PAGE>   3
            4. TITLE; FILING. Company warrants that, except as previously
disclosed in writing to Secured Party, it is the owner of the Collateral free
and clear of all liens, claims, and encumbrances of whatever kind or nature.
Company covenants that so long as any portion of the Obligation remains unpaid,
Company will not execute or file a financing statement or security agreement
covering the Collateral to anyone other than Secured Party, except in the
ordinary course of business or as otherwise allowed. Company agrees to sign and
deliver one or more financing statements or supplements thereto or other
instruments as Secured Party may from time to time require to comply with the
Uniform Commercial Code or other applicable law to preserve, protect and enforce
the security interest of Secured Party and to pay all costs of filing such
statements or instruments. In addition, Company shall promptly file a financing
statement to perfect Secured Party's interest in the Collateral.

            5. CARE OF COLLATERAL. Company will keep in effect all licenses,
permits and franchises required by law or contract relating to Company's
business (if applicable), property, or the Collateral; maintain insurance on the
Collateral; keep the Collateral in good repair and be responsible for any loss
or damage to it; at all times warrant and defend Company's ownership and
possession of the Collateral keep the Collateral free from all liens, claims,
encumbrances and security interests; pay when due all taxes, license fees, and
other charges upon the Collateral or upon Company's business, property or the
income therefrom; and not misuse, conceal or in any way use or dispose of the
Collateral unlawfully or contrary to the provisions of this Security Agreement
or of any insurance coverage. Loss of, damage to, or uncollectability of the
Collateral or any part thereof will not release Company from any of its
obligations hereunder.

            6. DEFAULT. A default hereunder will occur if any of the following
events occur: (1) Company fails to pay any portion of the Obligation when due;
(2) Company fails to perform any undertaking or materially breaches any warranty
or covenant in this Security Agreement or the Note; (3) any statement,
representation or warranty of Company under this Security Agreement or the Note
is untrue in any material respect when made; (4) Company becomes insolvent or
unable to pay debts as they mature or makes an assignment for the benefit of
creditors or any proceeding is instituted by or against it alleging that it is
insolvent or unable to pay its debts as they mature; (5) dissolution of Company;
(6) an attachment, garnishment, execution or other process is issued or a lien
filed against any property of Company, which is not removed within a reasonable
period of time; and (7) Company transfers an interest in any of the Collateral
contrary to the provisions of this Security Agreement without the prior written
consent of Secured Party other than in the ordinary course of business. Waiver
of any default will not constitute a waiver of any other or subsequent default.

            7. REMEDIES. Upon the occurrence of any default hereunder at any
time thereafter, all of the Obligation will, at the election of Secured Party
and without notice of such election, or demand for payment, become immediately
due and payable and Secured Party will have the remedies of a secured party
under the Utah Uniform Commercial Code or other applicable law.

            8. GENERAL. The wavier by Secured Party of any breach of any
provision of this Security Agreement or warranty or representation herein set
forth will not be construed as a

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waiver of any subsequent breach. The failure to exercise any right hereunder by
Secured Party will not operate as a waiver of such night. All rights and
remedies herein provided are cumulative. Company may not assign its nights or
delegate its duties hereunder without Secured Party's written consent. This
Security Agreement may not be altered or amended except by a writing signed by
all the parties hereto. This Security Agreement will be governed by and
construed and interpreted in accordance with the laws of the State of Utah. Any
provision hereof found to be invalid will not invalidate the remainder. All
words used herein will be construed to be of such gender and number as the
circumstances require. This Security Agreement binds Company, its successors and
assigns, and inures to the benefit of Secured Party, its successors and assigns.

            IN WITNESS WHEREOF, the parties have executed this Security
Agreement as of the date first written above.

            COMPANY:                         CALDERA SYSTEMS, INC.,
                                             a Utah corporation

                                             By:  /s/ RANSOM LOVE
                                                --------------------------------
                                                  Ransom Love
                                             Its: President

            SECURED PARTY:                   THE CANOPY GROUP, INC.,
                                             a Utah corporation

                                             By:  /s/ RALPH YARRO
                                                --------------------------------
                                                  Ralph Yarro
                                             Its: President

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<PAGE>   5

This FINANCING STATEMENT is presented to a filing officer for filing pursuant to
the Uniform Commercial Code.

For Filing Officer (Date, Time, Number, and Filing Office)

1. Debtor(s) (Last Name First) and address(es)

   CALDERA SYSTEMS, INC.
   240 WEST CENTER
   OREM, UT 84057

   Social Security or
                      ------------------
   Emp. Fed. I.D. No.   87-0617393
                      ------------------

2. Secured Party(ies) and address(es)

   THE CANOPY GROUP
   240 WEST CENTER STREET
   OREM, UTAH 84057

3. Maturity date (if any):

   Approved by Division of Corporations and Commercial Code, Department of
   Business Regulations

4. This Financing Statement covers the following types (or items) of property:

   All items listed on the attached Attachment 1 including, but not limited to
   general intangibles, accounts (including accounts receivable), inventory,
   equipment, fixtures, and chattel paper, documents and instruments now owned
   or hereafter acquired.

   The Secured party is [ ] is not [x] a seller or Purchase money lender of the
   collateral.

5. Assignee(s) of Secured Party and Address(es)

6. Gross sales price of collateral
   $
    ---------------------------------
   $                                  Sales
    ---------------------------------
   or use tax paid to State of

This statement is filed without the debtor's signature to perfect a security
interest in collateral (Check x if so)

   [ ] already subject to a security interest in another jurisdiction when it
       was brought into this state.
   [ ] which is proceeds or the original collateral described above in which a
       security interest was perfected.

                       Microfilm No.

Check [X] if covered: [X] Proceeds of Collateral are also covered. [X] Products
of Collateral are also covered. No. of additional Sheets presented: 1

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

   Caldera Systems, Inc.                            The Canopy Group
--------------------------------------    --------------------------------------

By: /s/ RANSOM H. LOVE                    By: /s/ RALPH YARRO
   -----------------------------------       -----------------------------------
       Signature(s) of Debtor(s)             Signature(s) of Secured Party(ies)

                               STANDARD FORM UCC-1

<PAGE>   6

                                  ATTACHMENT 1
                         TO FINANCING STATEMENT BETWEEN
                      CALDERA SYSTEMS, INC, AS DEBTOR, AND
                       THE CANOPY GROUP, AS SECURED PARTY

                  The security interest covered by this Financing Statement
      includes the following property:

                        (a) GENERAL INTANGIBLES. All of Debtor's General
Intangibles, now existing or hereafter arising or acquired, together with the
proceeds therefrom. As used herein, the term "General Intangibles" means all
personal property (including things in action) other than goods, accounts,
chattel paper, documents, instruments, and money, and includes, but is not
limited to, business records, deposit accounts, inventions, intellectual
property, designs, patents, patent applications, trademarks, trade names, trade
secrets, goodwill, copyrights, registrations, licenses, permits, franchises, tax
refund claims, and any letters of credit, guarantee claims, security interests,
or other security held by Debtor to secure any "Accounts" (as hereinafter
defined).

                        (b) ACCOUNTS (INCLUDING ACCOUNTS RECEIVABLE). All of
Debtor's Accounts, whether now existing or hereafter arising or acquired,
together with the proceeds therefrom. As used herein, the term "Accounts" means
any right of Debtor to receive payment from another person or entity, including
payment for goods sold or leased, or for services rendered, no matter how
evidenced or arising, and regardless of whether yet earned by performance. It
includes, but is not limited to, accounts, accounts receivable, contract rights,
contracts receivable, purchase orders, notes, drafts, acceptances, all rights to
payment earned or unearned under a charter or other contract involving the use
or hire of a vessel and all rights incident to the charter or contract, and
other forms of obligations and receivables.

                        (c) INVENTORY. All of Debtor's Inventory, whether now
owned or hereafter acquired, together with the products and proceeds therefrom
and all packaging, manuals, and instructions related thereto. As used herein,
the term "Inventory" means all goods, merchandise, and personal property held
for sale or leased or furnished or to be furnished under contracts of service,
and all raw materials, work in process, or materials used or consumed in
Debtor's business, wherever located and whether in the possession of Debtor, a
warehouseman, a bailee, or any other person.

                        (d) EQUIPMENT. All of Debtor's Equipment, now owned or
hereafter acquired, together with the products and proceeds therefrom, and all
substitutes and replacements therefor. As used herein, the term "Equipment"
includes all equipment, machinery, tools, office equipment, supplies,
furnishings, furniture, or other items used or useful, directly or indirectly,
in Company's business, all accessions, attachments, and other additions thereto,
all parts used in connection therewith, all packaging, manuals, and instructions
related thereto, and all leasehold or equitable interests therein.

                        (e) FIXTURES. All of Debtor's interest in and to all
fixtures and furnishings, now owned or hereafter acquired, together with the
products and proceeds therefrom, all substitutes and replacements therefor, all
accessories, attachments, and other additions thereto, all tools, parts, and
supplies used in connection therewith, and all packaging, manuals, and
instructions related thereto, located on or attached to Debtor's business
premises located at 240 West Center, Orem, Utah 84057.

                        (f) CHATTEL PAPER, DOCUMENTS AND INSTRUMENTS. All of
Debtor's right, title, and interest in any chattel paper, documents, or
instruments, now owned or hereafter acquired or arising, or now or hereafter
coming into the possession, control, or custody of either Debtor or Secured
Party, together with all proceeds therefrom. The terms "chattel paper,"
"documents," and "instruments" shall have those meanings ascribed to them in the
Utah Uniform Commercial Code.

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