Document:

<PAGE>
                                                                   EXHIBIT 10.13

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* Terms denoted with an asterisk have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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                                                CONFIDENTIAL TREATMENT REQUESTED

                              DISTRIBUTOR CONTRACT

                                    BETWEEN

                             TECH DATA CORPORATION

                                      AND

                                   LANTRONIX
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                             DISTRIBUTOR AGREEMENT

     THIS AGREEMENT, dated this 25th day of January, 1994 (the "Effective
Date"), is between TECH DATA CORPORATION, a Florida corporation ("Tech Data"),
and LANTRONIX, ("LANTRONIX").

                              W I T N E S S E T H:

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

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

     WHEREAS, LANTRONIX 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 LANTRONIX hereby agree
as follows:

                        ARTICLE I. TERM OF AGREEMENT
                        ----------------------------

     1.1  Term of Agreement.  During the term of this Agreement, LANTRONIX will
          -----------------
          provide to Tech Data the Products set forth in Purchase Orders 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
          will be automatically renewed for successive one (1) year terms unless
          prior written notification of nonrenewal is received at least thirty
          (30) days prior to the renewal date.

     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 as
             appropriate, hardware, licensed software, Documentation, developed
             Products, supplies, accessories, and other commodities related to
             any of the foregoing, as defined in Distributor Price List and
             attached hereto as Exhibit A.

             (d)  "Standard Products" shall mean Products requiring no changes,
             alterations, or additions, from those Products customarily offered
             by LANTRONIX, described in brochures and by exhibits.

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------
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                                                CONFIDENTIAL TREATMENT REQUESTED

             (e)  "Customized Products" shall mean any Products LANTRONIX must
             purchase requiring LANTRONIX to perform changes, alterations,
             assembly, additions or special packaging prior to shipping to Tech
             Data, as described in brochures and by exhibits.

             (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 in an addendum to the Agreement.

             (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 LANTRONIX.

1.3  Appointment as Distributor.  LANTRONIX hereby grants to Tech Data the non-
     --------------------------
     exclusive right to distribute Products during the term of this agreement
     within the Territory as herein defined. LANTRONIX reserves the right to
     appoint other authorized distributors. Tech Data will use its best efforts
     to promote sales of the Products with the Territory.

                          ARTICLE II. PURCHASE ORDERS
                          ---------------------------

2.1  Preparation of Purchase Orders.  From time to time or at Tech Data's
     ------------------------------
     request, LANTRONIX shall inform Tech Data of Products available from
     LANTRONIX including, but not limited to, replacement Products, new
     releases, enhancements or versions of existing Products. LANTRONIX 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 for
     distribution in the market place.

2.2  Issuance and Acceptance of Purchase Orders.  Tech Data may purchase and
     ------------------------------------------
     LANTRONIX shall sell to Tech Data, Products as described below:

             (a)  Tech Data may issue to LANTRONIX one or more purchase orders
             identifying the Products Tech Data desires to purchase from
             LANTRONIX. 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. Purchase orders may be placed by Tech Data by fax or
             electronically transferred and followed by a written confirmation
             within five (5) working days.

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------

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                                                CONFIDENTIAL TREATMENT REQUESTED

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

             (c)  LANTRONIX shall accept Purchase Orders 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
             LANTRONIX of any and all such transactions in writing within sixty
             (60) days after the termination date. Tech Data must provide along
             with written notification, proof of such contracts and valid
             purchase order to satisfy such contract with ship dates within
             sixty (60) days of the termination of the contract.

             (d)  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.  Within fifteen (15) days of
     -------------------------------------------
     ship date of Standard Products, LANTRONIX shall accept an alteration or
     cancellation to 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. Tech Data may not alter or
     cancel any Purchase Order for Customized Products after such time as the
     Products have been altered to a point where such Products are no longer
     capable of resale by LANTRONIX after reasonable efforts.

2.4  Evaluation or Demonstration Purchase Orders.  Tech Data may issue Purchase
     -------------------------------------------
     Orders in order to evaluate Products or for use as Demonstration Products
     at no charge for thirty (30) days with LANTRONIX approval and specified as
     "evaluation" on purchase order. 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 LANTRONIX at Tech
     Data's expense.

2.5  Product Shortages.  If for any reason LANTRONIX's production is not on
     -----------------
     schedule, LANTRONIX agrees to allocate Product to Tech Data's orders based
     upon a percentage equal to the same percentage as LANTRONIX's like
     Customers purchasing like volume of same Products.

                          ARTICLE III.  DELIVERY AND
                          --------------------------
                            ACCEPTANCE OF PRODUCTS
                            ----------------------

3.1  Subsidiaries.  LANTRONIX understands and acknowledges that Tech Data may
     ------------
     obtain Products in accordance with this Agreement for the benefit of
     subsidiaries of Tech Data. Upon prior approval from LANTRONIX subsidiaries
     of Tech Data shall be entitled to obtain Products directly from LANTRONIX
     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, overshipments will be
     returned to LANTRONIX at LANTRONIX's

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------

                                      -3-
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                                                CONFIDENTIAL TREATMENT REQUESTED

     expense (including without limitation costs of shipment) 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 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 damages Tech Data can be reimbursed by their insurance
     carrier. An offsetting purchase order will be placed for all bad box
     returns and Tech Data shall be responsible for freight cost.

3.3  Defective Products.  In the event any Products are received in a defective
     ------------------
     condition or not in accordance with LANTRONIX's published specifications or
     the documentation relating to such Products, Tech Data's Customer or end
     user should contact LANTRONIX directly and LANTRONIX will respond by
     providing free technical support, suggestions to getting the Product to
     operate accordingly and handling of the DOA Product. Should a Customer of
     Tech Data or an end user want to deal direct with Tech Data, Tech Data may
     return the Products to LANTRONIX 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 days (60) (30) days of the Products'
     initial delivery date to the end-user.

3.4  Transportation of Products.  LANTRONIX 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.
     LANTRONIX 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.

3.5  Title and Risk of Loss.  FOB Irvine, CA.  Title to Products shall pass to
     ----------------------
     Tech Data at the time that the Products are delivered to the common
     carrier. All risk of loss or damage to the Products shall be borne by
     LANTRONIX until delivery of such Products to the common carrier.

3.6  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)  LANTRONIX 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 LANTRONIX extends to its
             end-user Customers. The term of warranties and indemnities extended
             by LANTRONIX to an End User shall commence upon delivery of the
             Product to the End User.

             (b)  LANTRONIX shall make available at no charge to Tech Data and
             the Customers of Tech Data all training, technical support and
             other services at no charge to either party related to the Products
             that are currently offered or that may be offered by LANTRONIX to
             any other comparable domestic distributor. LANTRONIX also agrees to
             provide Tech Data a designated telephone support representative at
             no charge. Technical Support from the hours of 9 a.m. to 6 p.m. EST
             and Sales Support from the hours of 7 a.m. to 5 p.m. PST.

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------

                                      -4-
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                                                CONFIDENTIAL TREATMENT REQUESTED

             (c)  LANTRONIX shall provide at no charge to Tech Data and the
             Customers of Tech Data, reasonable sales training, marketing
             support, advertising materials and technical training in connection
             with the resale of products as are currently offered or that may be
             offered by LANTRONIX to any other comparable domestic distributor.
             Tech Data reserves the right to charge LANTRONIX for such services
             as mutually agreed upon in writing.

             (d)  Tech Data is hereby authorized to use trademarks and trade
             names of LANTRONIX and third parties used in connection with the
             Products, advertising, promoting or distributing the Products. Tech
             Data recognizes LANTRONIX 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 LANTRONIX or third parties relating to
             such trademark or trade name usage. Tech Data will notify LANTRONIX
             of any infringement of which Tech Data has actual knowledge. Tech
             Data shall discontinue use of LANTRONIXs' trademarks or trade names
             upon termination of this agreement, except as may be needed to sell
             or liquidate any final inventories of Product.

             (e)  LANTRONIX shall clearly mark each unit package with the serial
             number, product description and industry standard machine readable
             bar code.

3.7  Inventory Adjustment.  Open ended inventory adjustment will be accepted
     --------------------
     during the initial three (3) months of the Contract. Thereafter LANTRONIX
     agrees to accept, on a calendar quarter basis as outlined in LANTRONIX's
     Stock Rotation Policy attached as Exhibit C, a shipment of Product
     purchased within the last * * (*) * and in original sealed cartons returned
     by Tech Data and to credit Tech Data's account in the amount of the net
     price paid by Tech Data less any discounts or credits taken (except for
     prepay or early pay discounts) therefore (the "Return Credit"), provided
     that Tech Data places an offsetting purchase order of equal or greater
     value shippable within * (*) *. Return charges to be paid by Tech Data.

     In addition, Tech Data shall have the right to return for full credit, less
     any discounts or credits received (except for prepay or early pay
     discounts) without limitation as to the dollar amount, all Products
     purchased within the last twelve (12) months and in original sealed
     cartons, that become obsolete or LANTRONIX discontinues or are removed from
     LANTRONIX's current price list; provided Tech Data returns such Products
     within ninety (90) days after Tech Data receives written notice that such
     Products are obsolete, discontinued or are removed from LANTRONIX's price
     list.

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

3.9  Quality Control.  LANTRONIX shall test and inspect Products prior to
     ---------------
     shipment. LANTRONIX's standard inspection records, and a report setting
     forth product defect percentage rates are to be maintained by LANTRONIX and
     made available to Tech Data upon request with reasonable notice or, at the
     option of Tech Data, on a quarterly basis.

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------

                                      -5-
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                                                CONFIDENTIAL TREATMENT REQUESTED

                           ARTICLE IV.  WARRANTIES,
                           ------------------------
                          INDEMNITIES AND LIABILITIES
                          ---------------------------

4.1  Warranty.  LANTRONIX 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;
     the Products will be free from latent and patent defects in design,
     materials, and workmanship for a period of five (5) years from date of
     delivery to the end-user; the Products have been listed with Underwriters'
     Laboratories whenever such listing is available; the Products meet all FCC
     requirements; the Products do and will conform to all codes, laws or
     regulations, are merchantable and fit for their intended user, and the
     Products conform in all respects to the Product warranties. LANTRONIX shall
     supply Tech Data, at no additional charge, all services, parts or
     replacement Products necessary for LANTRONIX to comply with its Product
     warranties. LANTRONIX 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 LANTRONIX. LANTRONIX represents that the Product
     warranties shall also include those set forth in literature,
     specifications, documentation, advertising and printed material distributed
     by LANTRONIX. LANTRONIX shall indemnify and hold Tech Data, its
     subsidiaries, Customers and end-users and their respective successors,
     officers, directors, employees and agents harmless from and against all
     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.

4.2  Proprietary Rights Indemnification.  LANTRONIX hereby represents and
     ----------------------------------
     warrants that LANTRONIX 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. LANTRONIX
     shall indemnify and hold Tech Data, Tech Data's related and/or subsidiary
     companies, Tech Data's Customers and End Users 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 LANTRONIX'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
     LANTRONIX. LANTRONIX shall defend and settle, at its expense, all suits or
     proceedings arising therefrom. Tech Data shall inform LANTRONIX 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 or in Tech
     Data's opinion is likely to be sought or obtained, LANTRONIX 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. LANTRONIX
     shall have no

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------

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                                                CONFIDENTIAL TREATMENT REQUESTED

     liability under this Section for any infringement based on the use of any
     equipment or software, if the equipment or software is used in a manner or
     with equipment for which it was not reasonably intended, or if the
     equipment or software is used in an infringing process. LANTRONIX's
     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 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 on its employees.

     (b)  Without in any way limiting LANTRONIX's indemnification obligations as
     set forth in this Agreement, LANTRONIX shall maintain Comprehensive General
     Liability (Bodily Injury and Property Damage) Insurance in such amounts as
     is satisfactory to Tech Data, including the following supplementary
     coverage:

          (1)  Personal Injury Liability with "employee" and "contractual"
               exclusions deleted;

          (2)  Product and Completed Operations Liability;

          (3)  LANTRONIX shall provide certificates of all coverage to Tech Data
               naming Tech Data as additional insured and requiring thirty (30)
               days prior notice to Tech Data before termination of any such
               insurance.

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 LANTRONIX expressly contained or
     referred to in this Agreement without prior written approval of LANTRONIX.

4.7  LANTRONIX shall bear all costs of shipping and risk of loss of in-warranty
     Products to LANTRONIX's location and Tech Data or Tech Data's Customer
     shall pay freight charges for replacement Product back to Tech Data or Tech
     Data's Customer.

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------

                                      -7-
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                                                CONFIDENTIAL TREATMENT REQUESTED

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

                       ARTICLE V.  PAYMENT TO LANTRONIX
                       --------------------------------

5.1  Charges, Prices and Fees for Products.  Charges, prices, quantities and
     -------------------------------------
     discounts, it 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 LANTRONIX's then current
     established charges. LANTRONIX shall have the right to increase prices from
     time to time, upon written notice to Tech Data not less than thirty (30)
     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 LANTRONIX's suggested prices.

5.2  Most Favored Pricing and Terms.  LANTRONIX 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 LANTRONIX to any of its other comparable
     domestic distributors. If LANTRONIX offers price discounts, promotional
     discounts or other special prices to its other comparable domestic
     distributors, Tech Data shall also be entitled to participate and receive
     notice of the same no later than other comparable domestic distributors.

5.3  Payment.  Except as otherwise set forth herein, any undisputed sum due to
     -------
     LANTRONIX pursuant to this Agreement shall be payable as follows, 2%-15
     from the postmark date of Tech Data's transmittal, and such postmark date
     must be no greater than fifteen (15) days subsequent to LANTRONIX's invoice
     date, net thirty (30) days after the invoice receipt. LANTRONIX 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 for the disputed amount only, 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
     sixty (60) days and Tech Data may return any of the initial order for
     credit.

5.4  Taxes.  LANTRONIX shall directly reimburse Tech Data for all taxes,
     -----
     assessments, permits and fees, however designated which are levied upon
     this Agreement or the Products, excluding franchise taxes, sales or other
     use taxes and taxes based upon Tech Data's income.

5.5  Price Protection.  LANTRONIX shall grant to Tech Data a retroactive price
     ----------------
     credit for the full amount of any LANTRONIX 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. LANTRONIX shall have the
     right to a reasonable audit at LANTRONIX'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.

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------

                                      -8-
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                                                CONFIDENTIAL TREATMENT REQUESTED

5.6  Invoices.  A "correct" invoice shall contain (i) LANTRONIX's name and
     --------
     invoice date, (ii) a reference to 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.  LANTRONIX shall offer on a case by case basis
     ------------------
     advertising credits, co-op programs or other promotional programs or
     incentives to Tech Data as it offers its other comparable domestic
     distributors, then Tech Data shall have the right at Tech Data's option, to
     participate in such programs. LANTRONIX shall attach a copy of its co-op
     program hereto.

5.8  LANTRONIX Reports.  LANTRONIX 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 within ten (10)
     working days of the following month. Information provided will include:
     Month and year sales activity occurred, internal product number (assigned
     by Tech Data), written description, State and zip-code of Resellers
     location, unit cost (distributor's 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 within ten (10) working days of the
     following month. The reports will be delivered to the LANTRONIX at
     different times in the month.

5.10 LANTRONIX agrees that for the term of this Agreement, LANTRONIX shall
     provide financial summary statements annually and semi annually upon
     request.

                           ARTICLE VI.  TERMINATION
                           ------------------------

6.1  Termination.  Either party may terminate this agreement, with or without
     -----------
     cause, upon giving the other party thirty (30) 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

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------

                                      -9-
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                                                CONFIDENTIAL TREATMENT REQUESTED

     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 LANTRONIX's right to be paid for undisputed
     invoices for Products already shipped. The termination of this Agreement
     shall not affect any of LANTRONIX'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 LANTRONIX'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
     LANTRONIX and scheduled to ship on or before the termination date.

6.4  Repurchase of Products Upon Termination.  Upon the effective date of
     ---------------------------------------
     termination of this Agreement for any reason, LANTRONIX agrees to
     repurchase the Products in Tech Data's inventory in their original
     packaging and purchased within the last * * (*) *. LANTRONIX will
     repurchase the Products at the original net purchase price; less any
     discounts or credits received (except for prepay or early pay discounts)
     provided that the Products have been unopened and are in their original
     factory sealed packages. Tech Data shall submit to LANTRONIX, within * (*)
     * after termination, the quantity of Product that Tech Data wishes
     LANTRONIX to repurchase. In such event LANTRONIX shall issue a Return
     Authorization to Tech Data for all such Products; provided, however, that
     LANTRONIX shall accept returned Products in accordance with this Section
     absent a Return Authorization if LANTRONIX fails to issue said Return
     Authorization within five (5) working days of Tech Data's request.
     LANTRONIX 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 ten (10) days of receipt of the Product. Special
     order or customized Products shall not be eligible for repurchase pursuant
     to this section.

                          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 LANTRONIX. Neither party shall act or represent
     itself, directly or by implication, as an agent of the other party.

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------

                                     -10-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

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, its
     subsidiaries, or Customers, whether before or after the effective date,
     shall be and was received in strict confidence and identified as
     confidential, 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 in Pinellas County, Florida 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 via Federal Express, or when mailed by registered or certified
     mail, return receipt requested, postage prepaid, and addressed as follows:

<TABLE>
<CAPTION>
     In the Case of LANTRONIX:                                   In the Case of Tech Data:
     ---------------------------------------------     ------------------------------------------------
<S>                                                         <C>
     Lantronix Corporation                                    Tech Data Corporation
     15353 Barranca Parkway                                   5350 Tech Data Drive
     Irvine, CA 92718                                         Clearwater, FL 34620
     Attn:  Brad Freeburg                                     Attn:  Jennifer M. Dougan
            President                                                Director of Marketing
     cc:    John Galloghly                                           Operations
            VP Finance & Administration                       cc:    Debi A. Schwatka
                                                           Contracts Administrator
</TABLE>

All other notices as related to pricing, new Product introductions, promotions,
etc. shall be deemed given when delivered via fax or mail.

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.

             (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

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------

                                     -11-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

             describing the Force Majeure condition immediately continues
             performance whenever and to the extent such causes are removed.

             (b)  If, due to a Form Majeure condition, the scheduled time of
             delivery or performance is or will be delayed for more than ninety
             (90) 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.  LANTRONIX is required to issue a
      -------------------------------------
      Return Material Authorization Number (RMA) to Tech Data within forty-eight
      (48) hours of Tech Data's valid request, may not accept returned Product
      absent a Return Material Authorization Number. The net purchase price,
      minus any adjustments (except for prepay or early pay discounts) of such
      Products returned to LANTRONIX 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 LANTRONIX require that LANTRONIX
      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 LANTRONIX. In such event, Tech Data shall be
      entitled to deduct any such credits from the next monies owed to
      LANTRONIX. In the event credits exceed any balances owed by Tech Data to
      LANTRONIX, then LANTRONIX 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  Non-exclusive Market and Purchase Rights.  It is expressly understood and
      ----------------------------------------
      agreed that this Agreement does not grant to LANTRONIX 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  /S/                VENDOR  /S/
                            -------------              ----------------

                                     -12-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

7.16  Specifications and Drawing.  LANTRONIX 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  Software Licenses.  Whenever the Products described in this Agreement
      -----------------
      shall include software licenses, LANTRONIX hereby grants to Tech Data a
      non-exclusive license to market, demonstrate and distribute the software
      to Customers of Tech Data. Tech Data agrees to comply with LANTRONIX's
      reasonable software license agreements, and agrees to use reasonable
      efforts to protect LANTRONIX's software, including using reasonable
      efforts to avoid allowing Customers, individuals or employees to make any
      unauthorized copies of LANTRONIX's licensed software; to modify,
      disassemble or decompile any software; to remove, obscure or alter any
      notice of patent, trademark, copyright or trade name; or authorize any
      person to do anything that Tech Data is prohibited from doing under this
      Agreement. Provided, however, LANTRONIX shall provide Tech Data with
      copies of appropriate software and documentation, at no charge, for the
      purpose of effectively demonstrating equipment to Customers. This
      demonstration software shall be updated as appropriate to insure that
      current software is available for sales demonstration. Tech Data
      acknowledges that no title or ownership of the proprietary rights to any
      software is transferred by virtue of this Agreement. Tech Data will use
      reasonable efforts to protect LANTRONIX's rights under this section but
      Tech Data is not authorized and shall not be required to instigate legal
      action on behalf of LANTRONIX or its suppliers against third parties for
      infringement. Tech Data will notify LANTRONIX of any infringement of which
      it has actual knowledge.

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------

                                     -13-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

     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.

LANTRONIX                           TECH DATA CORPORATION

By: /S/                             By:   /S/
    --------------------------      --------------------------------------
Printed Name: Brad Freeburg         Printed Name: PEGGY K. CALDWELL

Title: President                    Title: Senior Vice President Marketing
       -----------------------             -------------------------------

Date: 12-22-1993                    Date: 1/25/94
      ------------------------            --------------------------------

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------

                                     -14-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                                MDF REQUIREMENTS
                                   LANTRONIX

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

HOW CO-OP IS EARNED:

  .  Moneys are approved or disapproved on a discretionary manner, based on the
     plans and programs agreed upon by both companies.

HOW CO-OP IS SPENT:

  .  Tech Data will be reimbursed for 100% of the approved cost for ads or
     promotions that feature vendor products.

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.

Accepted:

     /S/
-------------------------------------

Name: Brad Freeburg
      -------------------------------

Title: President
       ------------------------------

Date: 12-22-1993
      -------------------------------

                   TECH DATA  /S/                VENDOR  /S/
                            -------------              ----------------

<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                             LANTRONIX Exhibit (C)

                             Tech Data Corporation
                             ---------------------

================================================================================
                       Stock Rotation Policy & Procedure
================================================================================

                           LANTRONIX SUPPORT POLICY

1.      Lantronix will allow quarterly stock rotations of a dollar value of less
        than or equal to *% of net purchases of the previous 90 days.
        Distributor offsetting purchase order must be non-cancellable, non-
        reschedulable and of equal or greater value than return and must be
        shippable within same calendar quarter.

2.      Lantronix will provide Distributor, within the initial three months of
        this Agreement, the right to rotate up to 100% of the initial stocking
        order. Distributor will in turn provide Lantronix with a non-
        cancellable, non-reschedulable purchase order shippable within current
        quarter of a total dollar amount equal to or greater than the approved
        Stock Rotation dollar total.

3.      Lantronix will rotate up to 100% of NEW products announced within six
        months of Lantronix's ship date. Distributor will be allowed to rotate
        with offsetting order without being penalized by subtraction from
        eligible stock rotation dollars, however purchases of new products that
        are rotated under this clause will not be included when calculating
        standard stock rotation eligibility.

                             TIMING AND PROCEDURE

1.      Lantronix will only rotate Distributor Inventory four times per year on
the calendar quarter.

<TABLE>
<CAPTION>
Qtr. End              Ltr. of Eligibility           RMA Req. &             RMA # Issued         Return Prod
Effective Date                                  Offset Purch Order                                  Shipped
------------------------------------------------------------------------------------------------------------
<S>                   <C>                       <C>                        <C>                  <C>
March 31                   April 10                 April 30                 April 30              May 15
June 30                    July 10                  July 25                  July 31               Aug 15
Sept 30                    Oct 10                   Oct 25                   Oct 31                Nov 15
Dec 30                     Jan 10                   Jan 25                   Jan 31                Feb 15
</TABLE>

2.      Lantronix will only rotate new, unsold and unopened products received
        within the previous 200 days as originally received from Lantronix.

3.      Lantronix will not rotate products shipped to the Distributor more than
        one year prior to the effective date of the rotation.

4.      By the 10th day of the first month following Quarter End, Lantronix
        Distribution Manager will mail a Letter of Eligibility to advise
        Distributor of the forthcoming Stock Rotation and accrued dollars.
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                             DISTRIBUTOR AGREEMENT
                               GOVERNMENT SALES
                                   ADDENDUM

     This Addendum is entered into between Tech Data Corporation, with its
principal place of business at 5350 Tech Data Drive, Clearwater, Florida 34620
("Tech Data") and Lantronix with its principal place of business at 15353
Barranca Place, Irvine, California 92618 ("VENDOR").

                                   RECITALS

A.   Tech Data and VENDOR entered into a Distributor Agreement on the 1st day of
October, 1996 (the "Distributor Agreement") pursuant to which VENDOR provides
certain of Vendor's personal computer software and/or hardware products (the
"Products") to Tech Data and Tech Data distributes the Products to its customers
for resale to end-users.

B.   Certain of Tech Data's customers are involved in the sale of personal
computer software and hardware products to Federal, State and Local Governments
and Government funded Educational Institutions and their various agencies and
departments (the "Government").

C.   VENDOR desires to promote and enhance sale of VENDOR'S Products to the
Government and Tech Data is willing to assist VENDOR by providing services to
promote VENDOR'S Products to Tech Data's customers bidding on Government
business on the terms and conditions of this Addendum.

     NOW, THEREFORE, in consideration of the Recitals and the mutual covenants
contained herein, the parties agree as follows:

     1.    Tech Data Services.  Tech Data agrees to provide the following
           ------------------
services and support relating to the sale of VENDOR'S Products to Tech Data's
customers for resale to the Government:

           (a)  Government Point-of-Sale Report.  Tech Data shall provide to
VENDOR a Point-of-Sale Report showing sales of Products to Tech Data's customers
which Tech Data has been advised are to fulfill Government orders and for which
Tech Data is seeking a service discount under section 2 of this Agreement.

           (b)  Bids.  When solicited for quotes on product pricing related to
Government orders, Tech Data will quote VENDOR'S Products if the Products meet
the bid criteria, price criteria and other criteria of Tech Data, its customers
and the Government order.

     2.    Compensation for Services.  In consideration of the services provided
           -------------------------
by Tech Data and the opportunities arising through Tech Data's customers for
resale of the Products to the Government, VENDOR shall provide Tech Data with
the following:

           (a)  Service Discount.  An additional discount of 1-3% of the price
paid by Tech Data to VENDOR or (over the present discount percentage stated in
the Distributor Agreement) for Products sold by Tech Data to its customers for
Government orders shown on the Government Point-of-Sale Report shall be paid by
VENDOR to Tech Data within 30 days of VENDOR'S receipt of the Government Point-
of-Sale Report.
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

           (b)  Marketing Development Funds and Co-op.  VENDOR shall provide
marketing development funds equal to 0 Dollars (or 0 % of sales shown on the
Government Point-of-Sale Reports) to Tech Data for use by Tech Date to assist in
the development, in conjunction with VENDOR, of the sale of VENDOR'S Products to
Tech Data customers for resale to the Government. Such funds shall be made
available to Tech Data within 0 days of VENDOR'S receipt of the Government Point
of-Sale Report.

     3.    Term.  The term of this Addendum shall commence on the date it is
           ----
executed by an authorized representative of Tech Data and shall expire upon
expiration of the Distributor Agreement. Either party may terminate this
Addendum for cause by written notice if the other party breaches a material
provision of this Addendum and fails to cure such breach with thirty (30) days
of receipt of notice of such breach by the non-breaching party. Either party may
terminate this Agreement solely for its convenience upon thirty (30) days prior
written notice to the other party. Any early termination of this Addendum shall
not affect the Distributor Agreement. Termination of this Addendum shall not
affect any specific agreement between VENDOR and Tech Data, including, but not
limited to any purchase orders or letters of supply or pricing guarantees
offered for Tech Data's Resellers and entered into prior to the date of
termination. Upon Termination, VENDOR shall pay to Tech Data all amounts due
hereunder for government sales shown on the Government Point-of-Sale Reports
through the date of termination and honor all guaranteed pricing and guaranteed
supply Reseller contract(s), until the expiration of the contract(s), even when
early termination of this agreement proceeds the end of such contract(s).

     4.    Terms and Conditions.  The terms and conditions contained in the
           --------------------
Distributor Agreement, as modified by this Addendum, shall apply to this
Addendum, as if set out herein in full.

VENDOR                                     TECH DATA CORPORATION

  /S/                                         /S/
-------------------------------------      -------------------------------------
Print Name:  Rick Davitt                   Print Name:  Michael J. Attineta
            -------------------------                  -------------------------

Title: VP Wordwide Sales                   Title: VP of Sales Ops
       ------------------------------             ------------------------------

Date:  10-31-96                            Date: 10-31-96
       ------------------------------      -------------------------------------

                                      -2-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                                   LANTRONIX

                       Addendum to Distributor Agreement

Any product sold under the Government Sales Addendum and submitted to Lantronix
for discount is not eligible for any other promotional rebates, meet-comps, or
other price concessions.

Volume of Government Sales Addendum associated sales will count for meeting any
targeted volume goals/quotas, any incentive calculation will be based only upon
non-Government sales.
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                        PRICE LIST FOR GOVERNMENT SALES

<TABLE>
<CAPTION>
 PROD_NAME               LIST_PRICE            CUST_PRICE
----------------        ----------------      ----------------
<S>                     <C>                   <C>                    <C>
MPS1-T-01                     *                    *                 *%
MPS1-2-01                     *                    *                 *%
LPSI-T-01                     *                    *                 *%
EPS1-01                       *                    *                 *%
EPS2-01                       *                    *                 *%
ETS16UF                       *                    *                 *%
ETS8UF                        *                    *                 *%
EPS4UF                        *                    *                 *%
MSS1-T-01                     *                    *                 *%
LAT-EPSI                      *                    *                 *%
LAT-EPS2                      *                    *                 *%
LAT-EPS4                      *                    *                 *%
LAT-ETS8                      *                    *                 *%
LAT-EPS12                     *                    *                 *%
LAT-ETS16                     *                    *                 *%
LNA6                          *                    *                 *%
LNA2                          *                    *                 *%
LRP6                          *                    *                 *%
LRP2                          *                    *                 *%
LRS16                         *                    *                 *%
LRS2-01                       *                    *                 *%
LRS1-T-01                     *                    *                 *%
F3-LRS2                       *                    *                 *%
F3-LRS16                      *                    *                 *%
LSW8                          *                    *                 *%
LSW-TX                        *                    *                 *%
LSW-FM                        *                    *                 *%
LSW-FS                        *                    *                 *%
LSB4                          *                    *                 *%
LB2                           *                    *                 *%
LFR8                          *                    *                 *%
LTR8                          *                    *                 *%
LTR4                          *                    *                 *%
LTR1                          *                    *                 *%
LTR16T                        *                    *                 *%
LTR8T                         *                    *                 *%
</TABLE>
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
<TABLE>
<CAPTION>
 PROD_NAME               LIST_PRICE            CUST_PRICE
----------------        ----------------      ----------------
<S>                     <C>                   <C>                    <C>
LMR8TA-01                     *                    *                 *%
LMR9T-01                      *                    *                 *%
LMR8T-2-01                    *                    *                 *%
LMR8T-01                      *                    *                 *%
LMR4TA-01                     *                    *                 *%
LMR5T-01                      *                    *                 *%
LMR4T-2-01                    *                    *                 *%
LMR4T-01                      *                    *                 *%
LTX-T-11                      *                    *                 *%
LTX-TA                        *                    *                 *%
LTX-TA-11                     *                    *                 *%
LTX-2-11                      *                    *                 *%
LTX-2A                        *                    *                 *%
LTX-2A-11                     *                    *                 *%
LTX-5                         *                    *                 *%
LTX-FL-11                     *                    *                 *%
LTX-C-01                      *                    *                 *%
LTX-C2-11                     *                    *                 *%
LTX-C5-01                     *                    *                 *%
LTX-CFL-11                    *                    *                 *%
LPM8-01                       *                    *                 *%
LPM4-FL                       *                    *                 *%
LPM4-T                        *                    *                 *%
LPM4-2                        *                    *                 *%
LPM2-FL                       *                    *                 *%
LPM2-T                        *                    *                 *%
LPM2-2                        *                    *                 *%
500-008                       *                    *                 *%
500-016                       *                    *                 *%
500-017                       *                    *                 *%
500-018                       *                    *                 *%
500-019                       *                    *                 *%
500-023                       *                    *                 *%
MPS1-T-02                     *                    *                 *%
MPSI-2-02                     *                    *                 *%
EPS1-02                       *                    *                 *%
EPS2-02                       *                    *                 *%
</TABLE>

                                      -2-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
<TABLE>
<CAPTION>
 PROD_NAME               LIST_PRICE            CUST_PRICE
----------------        ----------------      ----------------
<S>                     <C>                   <C>                    <C>

MSS1-T-02                     *                    *                 *%
LRS2-02                       *                    *                 *%
LRS1-T-02                     *                    *                 *%
LMR8TA-02                     *                    *                 *%
LMR9T-02                      *                    *                 *%
LMR8T-2-02                    *                    *                 *%
LMR8T-02                      *                    *                 *%
LMR4TA-02                     *                    *                 *%
LMR5T-02                      *                    *                 *%
LMR4T-2-02                    *                    *                 *%
LMR4T-02                      *                    *                 *%
LPM8-02                       *                    *                 *%
LTX-C-02                      *                    *                 *%
LTX-C2-12                     *                    *                 *%
LTX-C5-02                     *                    *                 *%
LTX-CFL-12                    *                    *                 *%
EPS12U                        *                    *                 *%
EPS12UF                       *                    *                 *%
EPS4U                         *                    *                 *%
ETS16U                        *                    *                 *%
ETS8U                         *                    *                 *%
LSW8-TX-1                     *                    *                 *%
LSWB-TX-2                     *                    *                 *%
LSW8-TXFM                     *                    *                 *%
LSW8-TXFS                     *                    *                 *%
LTX-2                         *                    *                 *%
LTX-FL                        *                    *                 *%
LTX-T                         *                    *                 *%
</TABLE>

                                       3<PAGE>
                                                                   EXHIBIT 10.14

--------------------------------------------------------------------------------
*Terms denoted with an asterisk have been omitted and filed separately with the
Securities an Exchange Commission pursuant to a request for confidential
treatment.
--------------------------------------------------------------------------------

                                                CONFIDENTIAL TREATMENT REQUESTED

                            DISTRIBUTION AGREEMENT
                            ----------------------

     THIS AGREEMENT (the "Agreement") is made and entered into as of June 1,
1993 by and between INGRAM MICRO INC., a California corporation (hereinafter
"Ingram") and LANTRONIX, a California 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 parties hereto agree as follows:

                     1.  GRANT OF DISTRIBUTION RIGHTS.

     1.1  Vendor hereby grants to Ingram, and Ingram accepts, the non-exclusive
right to distribute in the domestic United States those products listed on
Exhibit A attached hereto and made a part hereof (hereinafter all products to be
distributed shall be referred to as the "Product" or "Products").

     1.2  Vendor agrees to make available and to sell to Ingram such Product as
Ingram shall order from Vendor at the prices and subject to the terms set forth
in this Agreement. Ingram shall purchase Product in bulk packaging. The minimum
order will be five hundred dollars ($500.00). However, these minimum order
requirements will be waived for emergency or evaluation requirements.

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

                                 2.  TERM.

     2.1  The term of this Agreement shall be for a period of one (1) year,
beginning on July 1, 1993. 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.
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                          3.  OBLIGATIONS OF VENDOR.

     3.1  Vendor shall use its best efforts to ship the Product within ten (10)
working days after receipt of Ingram's written order for the Product, unless
otherwise directed by Ingram.

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

     3.3  Vendor shall notify Ingram at least thirty (30) days prior to the date
any new Product is to be introduced and shall make such Product available for
distribution by Ingram not later than the date it is first introduced in the
marketplace.

     3.4  Vendor agrees to maintain sufficient Product inventory to permit it to
fill Ingram's orders as required herein. If a shortage of any Product in
Vendor's inventory exists in spite of Vendor's good faith efforts, Vendor agrees
to allocate its available inventory of such Product to Ingram in proportion to
Ingram's percentage of all of Vendor's customer orders for such Product during
the previous ninety (90) days, with the initial stocking order excepted.

     3.5  For each Product shipment to Ingram, Vendor shall issue to Ingram an
invoice showing Ingram's order number and the Product part number, description
and price. 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.

                          4.  OBLIGATIONS OF INGRAM.

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

     4.2  Ingram will advertise and/or promote the Products in a commercially
reasonable manner and will transmit Product 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, Product training and support required
under Section 3.2 hereof.

     4.4  Ingram will provide Product 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  Ingram will refer its customers directly to Vendor for return material
authorization and replacement of defective Products.

                                      -2-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                             5.  PRICE AND TERMS.

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

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

     5.3  In the event that Vendor reduces the price of any Product or offers
the Product at a lower price, including raising the discount offered, to any
other comparable domestic distributor, Vendor shall promptly credit Ingram for
the difference between the invoice price charged to Ingram and the reduced price
for each unit of Product held in inventory by Ingram on the date the reduced
price is first offered. Vendor will also credit Ingram for the difference
between the invoice price charged to Ingram and the reduced price for each unit
of Product held in inventory by Ingram's customers on the date the reduced price
is first offered by Vendor if Ingram's customers request a credit resulting from
Vendor's price reduction. Should any of Ingram's customers request a price
adjustment as outlined in this Section, Ingram shall provide for an independent
third party audit of that customer's inventory upon Vendor's reasonable request
and at Vendor's expense. Ingram will use commercially reasonable efforts to
provide inventory reporting of its customers' inventory.

     5.4  Terms of payment for any order shall be two percent (2%) fifteen (15)
days, net thirty (30) days; except for Ingram's initial order for any Product,
for which payment shall be due sixty (60) days from receipt of the applicable
invoice by Ingram. For the purposes of earning a discount, payment is deemed to
be made on the postmark date of Ingram's transmittal, and such postmark date
must be no greater than fifteen (15) days subsequent to Vendor's invoice date.

     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.

                                 6.  SHIPPING.

     6.1  Vendor shall ship Product only pursuant to Ingram's written purchase
orders received by Vendor. Product shall be shipped F.O.B. Vendor's Laguna
Hills, California warehouse, with risk of loss or damage to pass to Ingram upon
delivery by Vendor to the common carrier designated on Ingram's standard freight
routing instructions, attached as Exhibit B, and as may be amended by Ingram.

                                      -3-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

               7.  COOPERATIVE ADVERTISING AND MARKETING FUNDS.

     7.1  Ingram may advertise and promote the Product 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 Product and/or Vendor. Cooperative advertising allowances and marketing
development funds will be made available to Ingram by Vendor on an "as needed"
basis with the approval of Vendor. Vendor may review, and agree to participate
in, Ingram marketing programs at a later date.

                           8.  DEMONSTRATION UNITS.

     8.1  At the request of Ingram, Vendor shall consign to Ingram a reasonable
number of refurbished demonstration units of the Product to aid Ingram and its
sales staff in the support and promotion of the Product. 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.

                             9.  STOCK BALANCING.

     9.1  General Stock Balancing.  Notwithstanding anything else to the
          -----------------------
contrary in this Agreement, once every ninety (90) days, Ingram may return
Products whose total value does not exceed * percent (*%) of net purchases made
by Ingram from Vendor during the preceding ninety (90) days and which are in
their original packaging and were purchased by Ingram in the preceding six (6)
months for full credit of the Products' purchase price, less any discounts or
credits previously received. An offsetting order must be placed by Ingram at the
time Vendor issues a Return Materials Authorization ("RMA") number for the
Products Ingram is returning under this Section 9.1. Ingram must schedule this
offsetting order for shipment no later than * (*) * after the order is placed.
All freight charges for returned Products will be paid by Ingram.

     9.2  Returns After Termination.  Ingram may return any Product in its
          -------------------------
inventory which was purchased by Ingram from Vendor in the preceding * (*) * to
Vendor for credit against outstanding invoices, or for cash refund if there are
no invoices then outstanding, within * (*) * following the expiration or earlier
termination of this Agreement. Any credit or refund due Ingram for returned
Product shall be equal to the purchase price of the Product, less any discounts
or credits previously received, except for early payment or prepayment
discounts.

     9.3  Returns After Product Discontinuation.  Vendor shall provide Ingram
          -------------------------------------
with * (*) * written notice prior to the Vendor's discontinuation of any
Product. Upon receipt of such notice, Ingram shall have the right to, within *
(*) * after such notice is received, return all

                                      -4-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

discontinued Products purchased from Vendor during the preceding * (*) * for
full credit of the Products' purchase price, less any discounts or credits
previously received, except for early payment or prepayment discounts.

                           10.  PRODUCT WARRANTIES.

     10.1  Vendor warrants that the Products will comply with its limited
warranty as shown in Exhibit C attached.

     10.2  Ingram may return Product found to be defective, or returned as
defective by a customer of Ingram, upon receipt of an RMA number from Vendor
replacement of the Product. Vendor will pay freight charges incurred by Ingram
in returning the defective Product to Vendor. Ingram will pay return freight
charges.

     10.3  In the event Vendor recalls any or all of the Products due to
defects, revisions, or upgrades, Ingram shall provide reasonable assistance in
such recall; provided that, Vendor shall pay all of Ingram's reasonable expenses
in connection with such recall, excluding handling charges.

                                11.  INDEMNITY.

     11.1  Vendor shall defend, indemnify, and hold harmless Ingram from and
against any claims, demands, liabilities, or expenses (including attorney's fees
and costs) for any injury or damage, including, but not limited to, any personal
or bodily injury or property damage, arising out of or resulting in any way from
any defect in Products. This duty to indemnify Ingram shall be in addition to
the warranty obligations of Vendor.

     11.2  Vendor shall defend, indemnify and hold Ingram harmless from and
against all damages and costs incurred by Ingram arising from the infringement
of any patents, copyrights, trademarks, trade secrets, or other proprietary
rights in the manufacture or Vendor marketing of the Products; provided that,
Ingram promptly notifies Vendor of the charge of infringement or legal
proceeding. If there is a claim made or threatened, Vendor may, at its expense
and option, either procure the right to continue using any part of Product,
replace same with a non infringing Product, or modify Product such that it is
non infringing; provided that, if within ninety (90) days after a claim has been
made, Vendor has not procured such right, replaced the Product, or modified the
Product so that it does not infringe, Ingram may return the Product to Vendor
for a full credit against future purchases or for a cash refund, at Ingram's
option.

                            12.  PRODUCT MARKINGS.

     12.1  Vendor shall clearly mark on the packaging of each unit of Product
the Product's name and computer compatibility. Such packaging shall also bear a
machine-readable bar code

                                      -5-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

identifier scannable in standard ABCD format which identifies the Product 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. Vendor has until September 1, 1993 to
comply with the terms of this Section 12.1. If, at that time, Vendor has not
complied with the terms of this Section 13.1, Vendor agrees to pay those charges
as Ingram may impose for non-compliance with the terms of this Section 13.1.

                     13.  REPRESENTATIONS AND WARRANTIES.

     Vendor warrants and represents that:

     13.1  The Products or their use do not infringe upon any 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 Product or the use thereof infringes upon such proprietary rights.

     13.2  The Product prices offered herein are the best prices available to
any comparable domestic distributor to whom Vendor sells, and that in the future
all prices for Product made available to Ingram shall be the best prices
available to any comparable domestic distributor of the Products;

     13.3  Sales to Ingram of the Products 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;

     13.4  It has sufficient product liability insurance to enable it to meet
its obligations under Section 11 hereof.

                                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.

                                      -6-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

     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  During the term of this Agreement, Vendor shall carry insurance
coverage for product liability/completed operations with minimum limits of one
million dollars ($1,000,000). Within ten (10) days of the full execution of this
Agreement, Vendor shall provide Ingram with a Certificate of Insurance evincing
such insurance coverage including (a) a broad form vendor's endorsement naming
Ingram as an additional insured and (b) a mandatory thirty (30) day notice of
cancellation to Ingram.

                            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 be 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.

     16.5  Confidential Information.  Neither party shall disclose to the other
           ------------------------
any information regarded as confidential information by the disclosing party or
any third party. Any confidential disclosures shall be exclusively governed by a
separate agreement.

     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.

                                      -7-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

     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.

     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 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.

     16.11 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. Any conflicting
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 conflicting 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.

     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.                            Lantronix
1600 E. St. Andrew Place                     26072 Merit Circle, Suite 113
Santa Ana, California 92705                  Laguna Hills, California 92653

By:  /s/ Bruce S. Martin                     By:   /s/ Brad Freeburg
   ----------------------------                 -----------------------------
Name:   Bruce S. Martin                      Name:   Brad Freeburg
Title:  Senior Vice President Purchasing     Title:  *President
Date:   6/2/93                               Date:   6/7/93

                                      -8-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

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

                                      -9-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                                   EXHIBIT A
                                   ---------

                              PRODUCT PRICE LIST

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

         X     As shown on Vendor's price list dated May 12, 1993.
       -----

               As shown below.
       -----

          Product                    List Price                   Discount
------------------------    ---------------------------    ---------------------
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                                   EXHIBIT B
                                   ---------

                   INGRAM MICRO FREIGHT ROUTING INSTRUCTIONS

     All shipments for which Ingram Micro has agreed to pay freight costs are to
be shipped per the following instructions.  If any of these instructions are
unacceptable advise Ingram Micro's Traffic Manager before shipping the goods.
Shipments which do not comply with these instructions may be refused or freight
charges for such shipments may be subtracted from future payments to your
company.

     Ingram Micro's Transportation Department may be contacted at:

               Transportation Department
               Ingram Micro Inc.
               P.O. Box 25125
               Santa Ana, California 92799-5125
               (714 566-1000 EXT. 2217

INSTRUCTIONS:

     1.  All shipments must be shipped collect.  Where UPS consignee billing is
not available

     2.  Do not insure any shipment unless previously authorized by the Ingram
Micro Transportation Department.

     3.  Do not declare a value on Freight Collect shipments to Ingram Micro
unless previously authorized by the Transportation Department.

     4.  Surface shipments must be shipped as follows:

     If Shipment is:                       Ship via:
     --------------                        --------
     Maximum of 5 cartons
     Maximum of 250 lbs.                   UPS Ground or RPS Collect
     --------------------------------------------------------------------------
     251-10,000 lbs                        See attached Shipping Graph for LTL
     --------------------------------------------------------------------------
     Shipments which are greater than
     10,000 lbs, are oversize, or require  Call Ingram Micro Transportation
     special handling                      Department

     5.  Air freight shipments must be shipped prepaid or authorized by Ingram
Micro's Transportation Department.

NOTE:  All questions regarding these instructions should be directed to Ingram
Micro's Transportation Department at (714) 566-1000, ext. 2217.

Definitions:
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

UPS  -   United Parcel Service
RPS  -   Roadway Package System
LTL  -   Less Than Truckload

                                      -2-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                   FIRST ADDENDUM TO DISTRIBUTION AGREEMENT
                    BETWEEN INGRAM MICRO INC. AND LANTRONIX
                              DATED JUNE 1, 1993

     The above-referenced Agreement is hereby modified effective January 1, 1994
as follows:

     1. Section 1.1 of the Agreement is modified to read as follows: "Vendor
hereby grants Ingram, and Ingram accepts, the non-exclusive right to distribute
worldwide those products listed in Exhibit A attached hereto and made a part
hereof (hereinafter all products to be distributed shall be referred to as
"Product" or "Products") provided, however, that Vendor reserves the right to
contract with other international distributors, including affiliates of Ingram,
under terms and conditions that differ from this Agreement.

     2. Section 5.2 of the Agreement shall be modified to insert the words "and
shipped within * *" after the words "placed prior to the effective date".

     3. Section 5.3 of the Agreement shall be modified such that only the first
sentence of such section shall remain. The second through fourth sentences shall
be deleted. Vendor will consider similar price protection for certain Ingram
customers on a case-by-case basis provided such customers are approved, in
writing, by Vendor in advance and such customers are required to provide similar
month-end inventory reporting.

     4. Section 6.1 of the Agreement shall be modified to substitute "Irvine"
for "Laguna Hills".

     5. All addresses for Lantronix have been changed:

        From:  26072 Merit Circle, Suite 113      To: 15353 Barranca Parkway
               Laguna Hills, CA 92653                 Irvine, CA 92718
                                                      (714) 453-3990
                                                      (714) 453-3995 - fax

AGREED:

INGRAM MICRO INC.                       LANTRONIX

1600 E. St. Andrew Place                15353 Barranca Parkway
Santa Ana, CA  92705                    Irvine, CA  92718

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

Name: Sanat K. Dutta                    Name: Brad Freeburg
     --------------------------              -------------------------

Title: SR VP Operations                 Title: President
      -------------------------               ------------------------
<PAGE>

Date: 3/10/94                           Date: 3/18/94
     --------------------------              -------------------------

                                      -2-

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