Document:

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                                                                   Exhibit 10.18

                               ALLIANCE AGREEMENT
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                          IRONSIDE TECHNOLOGIES INC.

                                 ("Ironside")

                                   -  and -

                              WHITTMAN-HART, INC.

                                  ("Partner")

                                August 31, 1999
<PAGE>

     THIS AGREEMENT made as of the 31 day of August, 1999 between Ironside
Technologies Inc. ("Ironside"), a corporation incorporated under the laws of the
Province of Ontario, Canada and Whittman-Hart, Inc. ("Partner"), a corporation
incorporated under the laws of the State of Delaware, witnesseth that:

     WHEREAS:

     (a) Ironside owns certain software; and,

     (b)  Partner desires to market and integrate such software upon the terms
          and subject to the conditions of this Agreement;

     NOW THEREFORE, in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by the parties, the parties hereto
agree as follows:

                                   ARTICLE I
                                  DEFINITIONS

     Section 1.1  Definitions.  In this Agreement, and in all schedules and
                  -----------
amendments hereto, unless the context otherwise requires, the following words
and phrases shall have the meaning set forth after them:

     "Additional Charge" means the charge in accordance with Ironside's standard
rates in effect from time to time.

     "Agreement" means this agreement and all schedules and instruments in
amendment or confirmation of it; "hereof", "hereto" and "hereunder" and similar
expressions mean and refer to this Agreement and not to any particular Article,
Section, Subsection or other subdivision; "Article", "Section", "Subsection" or
other subdivision of this Agreement followed by a number means and refers to the
specified Article, Section, Subsection or other subdivision of this Agreement.

     "Commencement Date" means the date so specified on Schedule "A" hereto.

     "Customer" means a customer who enters into a License in the form attached
hereto as Schedule "B".

     "Delivery Site" means the location specified for delivery of Ironware by
Ironside.

     "Delivery Timeframe" means the period of time within which Ironware must be
delivered by Ironside to the Delivery Site.

     "Documentation" means the "Fahrenheit Product Overview" manual, the
"Fahrenheit Release Notes", the "Fahrenheit Installation and Operations Guide",
the "Gateway Development Guide", the "C Gateway Development Guide", the "ILE/RPG
Gateway Development Guide", and the "Fahrenheit Configuration Manual".

     "Initial Term" means the period so specified in Schedule "A".

     "Intellectual Properties" shall mean all right, title, interest and benefit
in and to all registered and unregistered trademarks worldwide or trademark
applications, trade or brand names, copyrights, copyright
<PAGE>

applications, designs, inventions, discoveries, improvements, patents, patent
applications, patent rights (including any patents issuing on such applications
or rights), technology, steps, processes, and trade secrets.

     "Ironware" means the software application system referred to more
specifically in Schedule "A" hereto, and all authorized updates, revisions and
modifications thereto, and the Documentation.

     "License" means a software license in the form attached hereto as Schedule
"B"

     "Parties" means Ironside, Partner and any other person who may become a
party to this Agreement; and "Party" means any one of them.

     "Territory" means the geographical area specified in Schedule "A" in which
Ironware may be marketed and promoted by Partner.

     Section 1.2  Gender and Number.  Any reference in this Agreement to gender
                  -----------------
shall include all genders, and words importing the singular number only shall
include the plural and vice versa.

     Section 1.3  Headings, Fee.  The provision of a Table of Contents, the
                  -------------
division of this Agreement into Articles, Sections, Subsections and other
subdivisions and the insertion of headings are for convenience of reference only
and shall not affect or be utilized in the construction or interpretation of
this Agreement.

     Section 1.4  Currency.  All references in this Agreement to dollars, unless
                  --------
otherwise specifically indicated, are expressed in United States currency.

     Section 1.5  Severability.  Any Article, Section, Subsection or other
                  ------------
subdivision of this Agreement or any other provision of this Agreement which is,
or becomes, illegal, invalid or unenforceable shall be severed from this
Agreement and be ineffective to the extent of such illegality, invalidity or
unenforceability and shall not affect or impair the remaining provisions hereof
or thereof.

     Section 1.6  Entire Agreement.  This Agreement constitutes the entire
                  ----------------
agreement between the Parties pertaining to the subject matter hereof and
supersedes all prior agreements, understandings, negotiations and discussions,
whether oral or written, of the Parties.  There are no representations,
warranties, conditions or other agreements, express or implied, statutory or
otherwise, between the Parties in connection with the subject matter of this
Agreement, except as specifically set forth herein and therein.

     Section 1.7  Amendments.  This Agreement may only be amended, modified or
                  ----------
supplemented by a written agreement signed by all of the Parties.

     Section 1.8  Waiver.  No waiver of any of the provisions of this Agreement
                  ------
shall be deemed to constitute a waiver of any other provision (whether or not
similar), nor shall such waiver constitute a waiver or continuing waiver unless
otherwise expressly provided in writing duly executed by the Party to be bound
thereby.

     Section 1.9  Governing Law.  This Agreement shall be governed by and
                  -------------
interpreted and enforced in accordance with the laws of the Province of Ontario
and the federal laws of the Canada applicable therein.

     Section 1.10  Inclusion.  Where the word "including" or "includes" is used
                   ---------
in this Agreement it means "including (or includes) without limitation".
<PAGE>

     Section 1.11  Incorporation of Schedules.  The following are the schedules
                   --------------------------
attached to and incorporated in this Agreement:

Schedule "A" - Contract Details
Schedule "B" - License Agreement

                                   ARTICLE 2
                  APPOINTMENT; RESPONSIBILITIES OF THE PARTIES

     Section 2.1  Appointment; License.  Ironside hereby grants Partner a non-
                  --------------------
exclusive, non-transferable, royalty-free license in the Territory for the
duration of this Agreement and for the purpose of demonstrating and marketing
Ironware to Customers and potential Customers and integrating Ironware to such
Customers' host business system.  For greater certainty, Partner expressly
acknowledges that Partner shall not demonstrate or market or integrate Ironware
except to Customers who shall use Ironware solely for the purpose of processing
their own internal business data in accordance with the terms of the License
attached hereto as Schedule "B" and the Customer shall have no right to sub-
license Ironware.  Partner shall use good faith efforts to only market and
integrate Ironware to Customers who will use Ironware only for their internal
business use, but Ironside acknowledges that a Customer's use of Ironware is
beyond Partner's control and thus Ironside's sole and exclusive remedy for such
breach shall be a claim against such Customer.

     Section 2.2  Responsibilities of Partner.  (1) During the term of this
                  ---------------------------
Agreement, Partner shall:

     (a)  use commercially reasonable efforts to market, demonstrate and promote
          Ironware in the Territory;

     (b)  be solely responsible for the installation services and integration of
          Ironware into the Customer's host business system provided, however
          that nothing in this Agreement shall require Partner to provide
          installation or integration services to any Customer or potential
          Customer;

     (c)  be solely responsible for the support and maintenance of such
          installation and integration services;

     (d)  communicate with Ironside sales representatives to develop a territory
          coverage plan and individual responsibilities;

     (e)  use commercially reasonable efforts to ensure that all copies of
          Ironware in its possession or control retain such copyright notice as
          is furnished by Ironside to Partner from time to time;

     (f)  act in good faith at all times to Ironside and provide such assistance
          and co-operation as Ironside reasonably requests consistent with the
          rights and obligations created by this Agreement;

     (g)  complete the sales training program offered by Ironside;

     (h)  maintain technical certification through Ironside's Technical
          Certification Program at agreed to rates.
<PAGE>

     Section 2.3  Responsibilities of Ironside.  During the term of this
                  ----------------------------
Agreement, Ironside shall:

     (a)  provide Partner, at no cost, with adequate copies of the software
          application component of Ironware for demonstration purposes, the
          Documentation and Ironside's current promotional documentation;

     (b)  provide Partner, at no cost, with full and accurate information
          regarding enhancements and new releases of Ironware as well as
          technical support it typically provides to its other partners; and,

     (c)  develop all such promotional material as may be required to market and
          promote Ironware;

     (d)  communicate with Partner sales representatives to develop a territory
          coverage plan and individual responsibilities;

     (e)  provide Partner, at no cost, with access to Ironside's sales training
          program

     (f)  provide Partner with access to Ironside's Technical Certification
          Program at rates that are mutually agreed upon by both parties;

     (g)  act in good faith at all times to Partner and provide such assistance
          and co-operation as Partner reasonably requests consistent with the
          rights and obligations created by this Agreement.

                                   ARTICLE 3
                       LICENSING; DELIVERY; INSTALLATION

     Section 3.1  Licensing.  (1) The Customer shall execute a License in the
                  ---------
form specified in Schedule "B".  Ironside reserves the right to amend the
software license fees, end user fees, and annual maintenance fees set forth in
Schedule "A" hereto from time to time upon providing thirty (30) days prior
written notice of such change to Partner, and any such change shall become
effective upon the expiration of such thirty (30) day period.  Ironworks is a
trade mark of Ironside.  All such rights, title and ownership in the trade mark
shall at all times remain solely and exclusively with Ironside, and Partner
shall not take any action inconsistent with such rights, title and ownership.

     Section 3.2  Delivery of Ironware.  Ironside shall deliver Ironware to the
                  --------------------
Customer at the Delivery Site within the Delivery Timeframe.

     Section 3.3  Installation.  Ironside shall not be responsible for any
                  ------------
aspect of the installation or integration of Ironworks.  Such services shall be
provided by Partner to Customer pursuant to a separate agreement between such
parties.

                                   ARTICLE 4
                                    BILLING

     Section 4.1  Customer Billing.  Ironside shall invoice the Customer in
                  ----------------
respect of any License for Ironware.  Customer shall be responsible for all
License, End User, Maintenance, and other fees in connection with Ironware, and
Partner shall have no liability to Ironside to Ironside for such fees.
<PAGE>

                                   ARTICLE 5
                       TRAINING AND CURRENT INFORMATION

     Section 5.1  Training.  (1) Ironside shall provide Partner and its relevant
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sales and technical personnel with such training in the use and marketing and
integration of Ironware as Ironside reasonably considers necessary in order to
facilitate the marketing and integration of Ironware.

     (2) Ironside shall supply the training referred to in Section 5.1 hereof at
such locations and at such times as it shall determine, acting reasonably.
Technical training referred to in section 5.1 shall be provided to Partner at
rates in accordance with Section 2.3(f).

     Section 5.2  Current Information.  Ironside shall keep Partner supplied
                  -------------------
with current information regarding enhancements or updates to Ironware.

                                   ARTICLE 6
                             TERM AND TERMINATION

     Section 6.1  Term.  This Agreement will commence on the Commencement Date
                  ----
and shall continue for the Initial Term as specified on Schedule "A", and shall
be automatically renewed on an annual basis thereafter, unless otherwise
terminated in accordance with this Agreement.

     Section 6.2  Default Termination.  If either Party shall be in breach of
                  -------------------
its obligations under this Agreement (the "Defaulting Party"), the Party not in
breach (the "Non-Defaulting Party") shall give written notice to the Defaulting
Party stating the nature of the breach with reference to the Agreement and
setting out a period of time that is reasonable in the circumstances within
which the Defaulting Party must cure its breach.  If the Defaulting Party has
not cured or is not, in the reasonable judgment of the Non-Defaulting Party,
actively and diligently seeking to cure the said default by the end of the time
period stated in such notice, the Non-Defaulting Party shall have the right to
terminate this Agreement immediately upon delivering a second written notice to
this effect to the Defaulting Party.  Such termination shall be without
prejudice to any other rights of the parties in law or in equity.

     Section 6.3  Automatic Termination.  (1) This Agreement may be terminated
                  ---------------------
by a Party (the "Terminating Party") upon written notice to the other Party (the
"Breaching Party") upon the occurrence of any of the following:

     (a)  disclosure of the trade secrets of the Terminating Party by the
          Breaching Party, whether directly, indirectly, inadvertently or
          otherwise by the Breaching Party;

     (b)  violation of the Intellectual Properties of the Terminating Party,
          including without limitation in the case of Ironside, any instance on
          the part of Partner of making copies of Ironware or using Ironware
          other than as set forth in Section 2.1 of this Agreement;

     (c)  cessation of business by the Breaching Party;

     (d)  the Breaching Party makes an assignment of its business for the
          benefit of creditors or is adjudicated a bankrupt;
<PAGE>

     (e)  a petition of bankruptcy is filed by or against the Breaching Party or
          a receiver, trustee in bankruptcy, or similar officer is appointed to
          take charge of the Breaching Party's property, which petition is not
          dismissed within 60 days; or

     The Terminating Party shall provide written notice to the Breaching Party
detailing the cause of its grounds for termination pursuant to this Section 6.3.
The effect of delivery by a Terminating Party of such notice is that this
Agreement shall forthwith be terminated upon receipt of such notice by the
Breaching Party.

     Section 6.4  Reciprocal Right of Termination.  (1) Either Party may
                  -------------------------------
terminate this Agreement any time by giving a minimum of 45 days prior notice to
the other party.

     (2) Upon receipt of a notice of termination pursuant to Section 6.4(1), the
receiving Party shall promptly cease all marketing of Ironware pursuant to the
terms of this Agreement, and in the case of Partner shall promptly deliver to
Ironside all materials provided to Partner by Ironside pursuant to this
Agreement, including without limitation, any Ironware or Documentation.

     Section 6.5  Termination Effect.

     (3) Upon a valid termination of this Agreement for any reason whatsoever in
accordance with this Article 6, neither party shall have any obligation to the
other for compensation or for damages of any kind resulting from such
termination, whether on account of the loss by a Party of present or prospective
sales, investments or goodwill, and each Party hereby waives any rights which
may be granted to it by statute or otherwise which are not granted to it by this
Agreement.

     (4) Any termination of this Agreement shall be without prejudice to any
other rights or remedies to which Ironside or Partner may be entitled hereunder
or at law or equity and shall not affect any accrued rights or the coming into
or continuance in force of any provision hereof which is expressly or by
implication intended to come into or continue in force on or after such
termination.

                                   ARTICLE 7
                        REPRESENTATIONS AND WARRANTIES

     Section 7.1  Ironside.  Ironside represents and warrants to Partner, with
                  --------
the intent that same be relied upon and shall survive the execution of this
Agreement:

Corporate Matters
-----------------

     (a)  Due Incorporation. Ironside is a corporation incorporated and existing
          under the laws of the Province of Ontario.

     (b)  Authorization. Ironside has the requisite power to enter into this
          Agreement and to carry out its obligations hereunder. This Agreement
          has been duly authorized, executed and delivered by Ironside and
          constitutes a valid and binding agreement of Ironside enforceable in
          accordance with its terms, except to the extent that its
          enforceability may be limited by applicable bankruptcy, insolvency,
          reorganization or other laws affecting the enforcement of creditors'
          rights generally or by general equitable principles.
<PAGE>

     (c)  Authority; Clear Title. Ironside has the full right, power and
          authority to enter into and perform this Agreement and to grant to and
          vest in Partner all of the rights herein set forth. Ironside is the
          owner or authorized licensee of the Intellectual Properties relating
          to Ironware.

     (d)  No Infringement. Ironside has not negligently or intentionally
          interfered with, infringed upon, misappropriated, or otherwise come
          into conflict with any Intellectual Property rights of third parties.

     Section 7.2  Partner.  Partner represents and warrants to Ironside, with
                  -------
the intent that same be relied upon by Ironside and shall survive the execution
of this Agreement:

Corporate Matters
-----------------

     (a)  Due Incorporation. Partner is a corporation incorporated and existing
          under the laws of State of Illinois.

     (b)  Authorization. Partner has the requisite power to enter into this
          Agreement and to carry out its obligations hereunder. This Agreement
          has been duly authorized, executed and delivered by Partner and
          constitutes a valid and binding agreement of Partner enforceable in
          accordance with its terms except to the extent that its enforceability
          may be limited by applicable bankruptcy, insolvency, reorganization or
          other laws affecting the enforcement of creditors' rights generally or
          by general equitable principles.

     (c)  Authority. Partner has the full right, power and authority to enter
          into and perform this Agreement.

     (d)  Technical Competency. Partner's relevant representatives are
          conversant with the technical language of computer products in
          general. Partner hereby warrants that its relevant representatives
          shall develop sufficient knowledge of Ironware and of Ironside's
          competitor's products to be able to explain in detail the difference
          to Customers and potential Customers.

     Section 7.3  Further Assurances.  Each of the parties will use reasonable
                  ------------------
commercial efforts to take all actions and to do all things necessary, proper or
advisable to consummate and make effective the transactions contemplated by this
Agreement.

     Section 7.4  Dealings with Ironware.  Partner shall not sell, license,
                  ----------------------
lease, transfer or otherwise deal with Ironware, except as specifically provided
in this Agreement.  Partner shall not market or promote Ironware except as set
forth in the Documentation and written promotional material delivered to Partner
by Ironside in accordance with Section 2.3 hereof.

     Section 7.5  Warranty Exclusion.  (1) IRONSIDE AND PARTNER ACKNOWLEDGE AND
                  ------------------
AGREE THAT THIS AGREEMENT PROVIDES LICENSES AND SERVICES AND IS NOT A SALE OF
GOODS.

     (2) THE WARRANTIES CONTAINED IN SECTION 7.1 ARE IN LIEU OF ALL OTHER
WARRANTIES OR CONDITIONS, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE
IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY, MERCHANTABLE QUALITY,
FITNESS FOR A PARTICULAR PURPOSE, OR INFRINGEMENT OR THOSE ARISING BY STATUTE OR
OTHERWISE IN LAW OR FROM THE COURSE OF DEALING OR USAGE OF TRADE.
<PAGE>

IRONSIDE DOES NOT REPRESENT OR WARRANT THAT IRONWARE WILL MEET ANY OR ALL OF THE
CUSTOMER'S PARTICULAR REQUIREMENTS, THAT THE OPERATION OF IRONWARE WILL OPERATE
ERROR-FREE OR UNINTERRUPTED, OR THAT ALL PROGRAMMING ERRORS IN IRONWARE CAN BE
FOUND IN ORDER TO BE CORRECTED.

     (3) The parties agree that this Agreement is not subject to and shall not
be interpreted by the United Nations Convention on Contracts for the
International Sale of Goods.

     Section 7.6  Disclaimers.
                  -----------

     (1) IN NO EVENT WILL EITHER PARTY OR ITS DIRECTORS, OFFICERS, EMPLOYEES OR
SHAREHOLDERS BE LIABLE IN RESPECT OF INCIDENTAL, ORDINARY, PUNITIVE, EXEMPLARY,
INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES EVEN IF ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES INCLUDING, BUT NOT LIMITED TO, LOST BUSINESS REVENUE, LOST PROFITS,
FAILURE TO REALIZE EXPECTED SAVINGS, LOSS OF DATA, OR LOSS OF BUSINESS
OPPORTUNITY

                                   ARTICLE 8
                                  INDEMNITIES

     Section 8.1  Indemnification by Ironside.  Ironside agrees to indemnify,
                  ---------------------------
defend and hold Partner harmless from and against any loss, cost, damage,
liability, expense (including reasonable attorney's fees) or claim suffered or
incurred by Partner in connection with any infringement claim made by a third
party, provided however that Partner permits Ironside to defend, compromise or
settle such claim of infringement as Ironside in its sole discretion may
determine, and reasonably cooperates with Ironside in connection with such
defense, and further provided any such claim of infringement does not depend
upon the use of Ironware in conjunction with software not developed or licensed
by Ironside or other products not licensed or developed by Ironside or upon a
use of Ironware in an unusual or unintended manner.  Partner shall have the
right to participate in such defense at its own expense.

                                   ARTICLE 9
                                CONFIDENTIALITY

     Section 9.1  Confidential Information.  (1) The Parties agree that the
                  ------------------------
Confidential Information (as such term is defined below) of the other Party
shall be kept confidential and shall not be:

     (a)  used by a Party (the "Receiving Party") or by any of its directors,
          officers, employees, agents, solicitors, accountants or financial
          advisors (collectively the "Representatives") except in accordance
          with the terms of this Agreement; and,

     (b)  disclosed by the Receiving Party or by any of its Representatives in
          any manner whatsoever in whole or in part, except in accordance with
          the terms of this Agreement, without the prior written consent of the
          other Party.

     (2) "Confidential Information" in regards to Ironside means Ironware, the
Documentation, any information provided by Ironside to Partner about Ironware,
or any information, including Ironworks pricing, contained in this Agreement.
"Confidential Information" in regards to Partner shall mean any non-public
information disclosed by Partner to Ironside, including sales information.
<PAGE>

     Section 9.2  Use of Confidential Information.  The Receiving Party may
                  -------------------------------
transmit the Confidential Information to its Representatives, but only to the
extent that such Representatives:

     (a)  need to know the Confidential Information for the purpose of
          facilitating this Agreement;

     (b)  are informed by the Receiving Party of the confidential nature of the
          Confidential Information; and

     (c)  agree in writing to be bound by the terms of a confidentiality
          agreement with the Receiving Party substantially in accordance with
          the terms of this Agreement.

     Section 9.3  Applicability.  This Agreement shall not apply to such
                  -------------
portions of the Confidential Information which:

     (a)  are or become generally available to the public other than as a result
          of a disclosure in violation of this Agreement;

     (b)  becomes available the Receiving Party on a non-confidential basis from
          a source other than the other Party or its Representatives, provided
          that such a source is not bound by a confidentiality agreement with
          the other Party or its Representatives or otherwise prohibited from
          transmitting the Confidential Information to the Receiving Party by a
          contractual, legal or fiduciary obligation;

     (c)  were known to the Receiving Party on a non-confidential basis prior to
          its disclosure;

     (d)  are independently developed by the Receiving Party without reference
          to the Confidential Information; or

     (e)  the Receiving Party is obligated to disclose pursuant to statutory or
          regulatory requirements or an order of a court of competent
          jurisdiction.

     Section 9.4  Survivorship.  The provisions of this Article 9 shall survive
                  ------------
any termination of this Agreement for a period of five (5) years or, if shorter,
the longest period of time permitted under applicable law.

                                  ARTICLE 10
                         INTELLECTUAL PROPERTY RIGHTS

     Section 10.1  Ironside's Proprietary Rights.  Ironside is the owner or
                   -----------------------------
authorized licensee in respect of all Intellectual Properties applicable to
Ironware, and all future releases and versions thereof, and such rights, title
and ownership shall at all times remain solely and exclusively with Ironside,
and Partner shall not take any action inconsistent with such rights, title and
ownership.

     Section 10.2  Trade Marks.  Except as expressly provided hereto, no license
                   -----------
or other right is granted by Ironside to Partner to use a trade mark, trade name
or service mark of the Ironside without Ironside's prior written permission.
<PAGE>

                                   ARTICLE 11
                                  ARBITRATION

     Section 11.1  Best Endeavors to Settle Disputes.  In the event of any
                   ---------------------------------
dispute, claim, question or difference relating to this Agreement, or the
validity or termination of this Agreement the parties involved in the dispute,
claim, question or difference shall use their best endeavors to settle such
dispute, claim question or difference.  To this effect, they shall consult and
negotiate with each other, in good faith and understanding of their mutual
interests, to reach a just and equitable solution satisfactory to such parties.

     Section 11.2  Arbitration.  Except as is expressly provided in this
                   -----------
Agreement, if the parties involved in the dispute do not reach a solution after
reasonable efforts to do so pursuant to Section 11.1, then upon written notice
by any Party to the other, such dispute shall be finally settled by arbitration.
Such arbitration shall be conducted in accordance with the International
Arbitration Rules (the "Rules") of the American Arbitration Association (the
"AAA") except as such Rules are superseded by this Agreement.  The decision or
award of the arbitrator shall be in writing, binding upon the parties, and shall
be enforceable by judgement entered in any court of competent jurisdiction.

     Section 11.3  Arbitration Procedure.  Any arbitration commenced by a Party
                   ---------------------
pursuant to Section 11.2 shall be based upon the following:

     (a)  the arbitration tribunal shall consist of one neutral arbitrator
          appointed by mutual agreement of the parties involved who is qualified
          by education and training to pass upon the particular matter to be
          decided, or in the event of failure to agree within 30 business days
          after referral of the dispute to arbitration, either Party may apply
          to the AAA administrator to appoint an arbitrator in accordance with
          the Rules;

     (b)  the arbitrator shall be instructed that time is of the essence in
          proceeding with his/her determination of the dispute and, in any
          event, the arbitrator shall endeavor to render a decision and award
          within 90 days of the final appointment of the arbitrator;

     (c)  the arbitration shall take place in Toronto, Ontario, unless the
          parties mutually agree, in writing, upon a different location;

     (d)  the law to be applied in connection with the arbitration shall be as
          set forth in Section 1.9 hereof;

     (e)  the arbitration award shall deal with the question of costs of
          arbitration and all matters related thereto.

     Section 11.4  Injunctive Relief.  Nothing in this Article 8 shall prevent a
                   -----------------
Party from seeking injunctive relief in connection with this Agreement at any
time prior to or during the pendency of any proceedings set forth in Sections
11.1 through 11.3 hereof.

                                   ARTICLE 12
                                    GENERAL

     Section 12.1  Notice.  (1) Any notice required to be given under this
                   ------
Agreement shall be in writing and shall be sufficiently given (i) if delivered
personally or (ii) if mailed (other than during any disruption of
<PAGE>

postal services) by registered mail, postage prepaid and addressed to the
relevant Party as indicated below or (iii) if given by electronic means by
forwarding to the Party's fax number.

     (2) Any such notice shall be deemed to have been given and to have been
received when delivered, if so delivered, on the second business day after the
date of mailing (other than during any disruption of postal services), if so
mailed, and on the date such notice was sent, if so given by electronic means:

     If to Ironside, at:

          Ironside Technologies Inc.
          500 Hood Road, 4th Floor
          Markham, Ontario
          L3R 0P6

     Or, if to Partner, at:

          Whittman-Hart, Inc.
          Corporate Headquarters
          311 South Wacker Dr
          Suite 3500
          Chicago, IL 60606

     Section 12.2  Further Assurances.  Each Party shall do such acts and shall
                   ------------------
execute such further documents, conveyances, deeds, assignments, transfers and
the like, and will cause the doing of such acts and will cause the execution of
such further documents as are within its powers as any other Party may in
writing at any time and from time to time reasonably request be done or
executed, in order to give full effect to the provisions of this Agreement.

     Section 12.3  Assignment.  Neither Party shall assign this Agreement
                   ----------
without the prior written consent of the other Party except that either Party
may assign this Agreement to an affiliate as defined in the Canada Business
Corporations Act without the consent of the other.

     Section 12.4  Enurement.  This Agreement shall enure to the benefit of and
                   ---------
be binding upon the Parties and their respective successors and permitted
assigns.

     Section 12.5  Independent Contractors.  In giving effect to this Agreement,
                   -----------------------
no Party shall be or be deemed an agent or employee of the other Party for any
purpose and their relationship to each other shall be that of independent
contractors.  Nothing in this Agreement shall constitute a partnership or a
joint venture between the Parties.  No Party shall have the right to enter into
contracts or pledge the credit of or incur expenses or liabilities on behalf of
the other Party.

     Section 12.6  Time of Essence.  Time shall be of the essence hereof.
                   ---------------

     Section 12.7  Force Majeure.  Except as expressly provided otherwise in
                   -------------
this Agreement, dates and times by which a Party is required to render
performance under this Agreement shall be postponed automatically to the extent
and for the period of time that such Party is prevented from meeting them by
reason of any cause beyond its reasonable control.  The Party prevented from
rendering performance must, however, notify the other Party immediately and in
detail of the commencement and nature of such cause and the probable
consequences thereof.  Such Party must use its best efforts to render
performance in a timely
<PAGE>

manner utilizing to such end all resources reasonably required in the
circumstances, including obtaining supplies or services from other sources if
same are reasonably available. Should such delay occur, payment of money, where
applicable, shall correspondingly be delayed.

Section 12.8  Counterparts.  This Agreement and any amendment hereto may be
              ------------
executed in one or more counterparts, each of which shall be deemed to be an
original by the Party executing such counterpart, but all of which shall be
considered one and the same instrument.

Section 12.9  Construction.  This Agreement has been negotiated by
              ------------
Ironside, Partner and their respective legal counsel, and legal or equitable
principles that might require the construction of this Agreement or any
provision of this Agreement against the Party drafting this Agreement will not
apply in any construction or interpretation of this Agreement.

IN WITNESS WHEREOF this Agreement is executed by both Parties on the 16 day of
September, 1999.

Ironside Technologies Inc.               Whittman-Hart, Inc.

By:  /s/ W.B. LIPSIN                     By:  /s/ EDWARD V. SZOFER
     ----------------------------           -----------------------------------
     (Authorized Signing Officer)          (Authorized Signing Officer)

  W.B. Lipsin                              Edward V. Szofer
_________________________________        _______________________________________
(Print Name)                             (Print Name)

  President & CFO                          President
_________________________________        _______________________________________
(Title)                                  (Title)
<PAGE>

                                  SCHEDULE "A"
                                CONTRACT DETAILS

Commencement Date:  August 31,1999      Initial Term:  12 months
Licensed Product:  Ironworks            Territory:  Worldwide
Licensed Product Documentation:
The following documentation is available from the Ironside website at
http://www.ironside.com in the "Developers Only" section:

     ILE / RPG Gateway Development Guide
     C Gateway Development Guide
     Fahrenheit Release Notes
     Gateway Development Guide
     Fahrenheit Configuration Guide
     Fahrenheit Installation and Operations Guide
     Fahrenheit Product Overview
     Fahrenheit - Document Index

                             IRONWORKS LICENSE FEES
                             ----------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
Ironworks Software License Fee:
-----------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------
Single User Service                                                                              $25,000
Each additional User Service                                                                     $10,000
-----------------------------------------------------------------------------------------------------------------
Ironworks End User License Fees:
-----------------------------------------------------------------------------------------------------------------
                                                                                     Net Price Ironworks
                                                                                     __________________?
  # of User ID's and         End User License           Total End User               __________________?
       Passwords                   Fee                   License Fee                 __________________?
-----------------------------------------------------------------------------------------------------------------
<S>                      <C>                       <C>                           <C>
          50                       $750                    $ 37,500
          250                      $400                    $100,000
          500                      $250                    $125,000
         1,000                     $150                    $150,000
         2,000                     $100                    $200,000
         3,000                     $ 70                    $210,000
         4,000                     $ 55                    $220,000
         5,000                     $ 45                    $225,000
        10,000                     $ 25                    $250,000
       Unlimited                  Quote                     Quote
-----------------------------------------------------------------------------------------------------------------
                                 Ironworks Development Kit (IDK) License Fee
-----------------------------------------------------------------------------------------------------------------
Ironworks Development Kit (IDK) License Fee                                                      $25,000
-----------------------------------------------------------------------------------------------------------------
                                      Annual Maintenance Fees
-----------------------------------------------------------------------------------------------------------------
Ironworks Annual Maintenance Fee:
Annual Maintenance Fee = (Software License Fee + End User License Fee) *15%
-----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>

<S>                                                  <C>
-----------------------------------------------------------------------------------------------------------------
Ironworks + Ironworks Development Kit (IDK) Annual Maintenance Fee:
Annual Maintenance Fee = (Software License Fee + End User License Fee + IDK License Fee) = 21%

-----------------------------------------------------------------------------------------------------------------
Annual Maintenance Fee charges commence in the first year of license.
Annual Maintenance Fees, in respect of each license of Ironware, are due to Ironside upon the anniversary of
 each such license.  Ironside may adjust the Annual Maintenance Fee upon 30 days written notice.
-----------------------------------------------------------------------------------------------------------------

</TABLE>
<PAGE>

                                 SCHEDULE "B"
                                    LICENSE

                          SOFTWARE LICENSE AGREEMENT
<PAGE>

                          SOFTWARE LICENSE AGREEMENT

                                    between

                          IRONSIDE TECHNOLOGIES INC.
                                 ("Ironside")

                                      and

                  -------------------------------------------
                                  ("Customer")

                             --------------------
                                     Date
<PAGE>

     By signing this Agreement, Licensor agrees to license to Customer the use
of the object code of the software application system detailed more specifically
in Schedule "A" hereto, and all updates, revisions and modifications thereto
(the "Software"), as well as all ancillary and related Documentation (as defined
herein) for its operation (collectively, the Software, and the Documentation are
referred to herein as "Ironware") and to provide education and additional
services to Customer, all in accordance with and subject to the terms and
conditions of this Agreement.  By signing this Agreement, Customer agrees to
accept such license and services, and to pay fees and expenses, all in
accordance with the terms and conditions of this Agreement.

     Section 1.1  Grant of License.  (1) In consideration of the Customer's
                  ----------------
promises contained herein and the Customer's payment of the software license fee
(the "Software License Fee"), the end user license fee (the "End User License
Fee") and the annual maintenance fee (the "Annual Maintenance Fee") listed on
Schedule "A" to this Agreement, Ironside grants to Customer, and Customer
accepts, subject to the terms and conditions set out in this Agreement, a non-
exclusive, non-transferable, perpetual license (the "License") to use Ironware
only at the location(s) and on the computer(s) order management system that
resides on the Host System Serial Number (the "Host System Serial #") of the
Customer indicated on Schedule "A" hereto and solely for the purpose of
processing the Customer's own internal business data.  The Customer acknowledges
that an additional license is required for use of Ironware other than as set out
herein.  The Customer shall have no right to sub-license, sell, lease, assign
(by operation of law or otherwise), or transfer a license of Ironware to any
third party, without the prior written consent of Ironside.

     (2) Title to and ownership of all rights in and to Ironware, including
copyright and all other intellectual property rights, shall at all times remain
with Ironside.

     Section 1.2  Licensed Use.  Ironware shall be used by Customer only as
                  ------------
specified in this Agreement and the Schedules attached hereto.  Ironware shall
not be copied by Customer and Customer shall not allow Ironware to be copied,
controlled, or used by others without the express, written permission of
Ironside.  Ironware may be used only by Customer, and the Customer shall not use
Ironware for commercial timesharing or service bureau or other rental or sharing
arrangements.  Ironware may be used by the Customer only at the location and on
the Host System Serial # in which they are first installed and may only be moved
to another location or another Host System Serial # by the Customer with the
prior, written permission of Ironside which shall not be unreasonably withheld.
The Customer agrees to notify Ironside immediately of any unauthorized
possession or use of Ironware.

     Section 1.3  Audit.  (1) The Customer shall not issue end user
                  -----
identifications or passwords of Ironware to its clients in excess of the number
for which this License permits, as specified in Schedule "A" herein.  The
Customer shall inform Ironside of the location of each site operating Ironware
and the number of end-users of Ironware for each such site, and such particulars
shall be recorded in Schedule "A" hereto.

     (2) Ironside may at any time review, at its own expense, the equipment and
records of the Customer pertaining to its license of Ironware for the purpose of
verifying that the Customer has not issued end user identifications or passwords
of Ironware to its clients in excess of the number for which this License
permits as specified on Schedule "A" hereto, and that the Customer has not
installed Ironware on a Host System Serial # or at a location other that as this
License permits, as specified in Schedule "A" hereto.  Any such examination
shall occur on not less than three days' notice, and, at the place where the
Customer keeps its equipment or records to be examined.  If as a consequence of
an examination, any payments are found to be due to Ironside, the Customer shall
(i) forthwith deliver a certified check for the outstanding amount to Ironside
in respect of such outstanding and, (ii) reimburse Ironside for its reasonable
expenses incurred in respect of this examination.
<PAGE>

     Section 2.1  Development and Support Services. In consideration of the
                  --------------------------------
payment of the Annual Maintenance Fee, the Development and Support Services
outlined in Section 2.1(1), 2.1(2), and 2.1(3) below shall be provided to
Customer.

     (1) Ironside shall be responsible for the development and enhancement of
Ironware and for all costs incurred in connection therewith.

     (2) Ironside shall determine which internet world wide web browsers run the
Java programming language and which command a market share of greater than 15%
of the internet browser market.  Such browsers will be addled to the list of
approved interned world wide web browsers, attached hereto as Schedule "C".
Browsers which no longer have a 15% market share, as determined by Ironside
acting reasonably, may be removed from the supported list at Ironside's
discretion and thereafter Ironside shall have no responsibility to enhance
Ironware to support such browsers so removed.  Ironside shall provide Customer
with at least 60 days written notice of any browsers that shall be moved from
the list of supported browsers.  Ironside will take all reasonable efforts to
modify Ironware, if necessary, to permit a world wide web browser to operate on
Ironware within 60 days from the date that such browser is placed on the
supported list.  Any such modification to Ironware shall be shipped to the
Customer in accordance with Section 3.2.

     (3) Telephone support services are provided to the Customer during regular
business hours (8:30 a.m. - 5:00 p.m. Eastern Time Zone, Monday - Friday).
Telephone support includes at no additional charge telephone and research time
performed by the Helpline staff as well as Electronic Customer Support which
provides Customer with limited on-line access to certain Ironside information,
such access being provided on an as-is basis and with the understanding that
Customer will not tamper with or abuse Ironside's systems or data.  Note,
however, that Helpline Support does NOT cover training, setup of hardware or
software, and programming consultation.  Additional time of coverage may be
available by written agreement of the parties and at Ironside's then current
prices, terms and conditions.  The Customer shall not tamper with, abuse or
misuse Ironside's systems or data.

     (4) At the request of the Customer or if Ironside determines that it cannot
diagnose, verify or remedy by remote means any significant error, malfunction or
defect in Ironware, Ironside shall provide qualified personnel to Customer's
site within three (3) days of such request or determination for the purpose of
correcting same.  In the event Ironside dispatches personnel to the Customer's
site, the Customer shall be responsible for payment of such Ironside personnel's
travel and living expenses within thirty (30) days of receipt of Ironside's
invoice to Customer for such expenses.

     (5) Upon thirty (30) days notice to Customer prior to the anniversary of
this Agreement, Ironside may increase the Annual Maintenance Fees in respect of
the services described in this Section 2.1 hereof.  Ironside agrees not to
increase its Annual Maintenance Fee by more than six percent (6%) of the dollar
amount charged in the previous year.

     Section 2.2  Professional Services.  At the request of the Customer,
                  ---------------------
Ironside may provide professional services for applications development, graphic
design and HTML page creation, installation, training and other services for the
rates as specified in schedule "B" hereto or at Ironside's then published
professional service rates.

     Section 3.1  Payment Terms.  (1) In consideration of the license granted
                  -------------
hereunder, the Customer shall pay to Ironside on a non-refundable basis, except
as provided in Section 6.1(5), the Software License
<PAGE>

Fee, the End User License Fee and the Annual Maintenance Fee listed on Schedule
"A", and Customer shall make such payments in accordance with the time frames
set out in this Section 3.1 and in Schedule "A".

     (2) The Customer agrees to pay all amounts due under this Agreement within
thirty (30) days of receipt of invoice.  Customer shall have thirty (30) days
after such date to contest to good faith the amounts and items charged.  Past-
due uncontested amounts will bear interest (i) of one and one-half percent
(1.5%) per month from the due date or (ii) the highest rate permitted by law, if
less.  The Customer shall also pay all costs and expenses, including reasonable
legal fees and expenses incurred by Ironside in connection with collecting
overdue amounts.  Ironside reserves the right to increase the fees in respect of
the professional services described herein upon ninety (90) days notice.  If any
amounts remain unpaid for thirty (30) days or more, Ironside may place Customer
on "credit hold" until such amounts are paid.  The effect of placing a Customer
on "credit hold" is that Ironside may withhold the software services described
in Section 2.1, including without limitation withholding any new release of
Ironware, any upgrades to Ironware with respect to internet world wide web
browsers, and telephone support services.

     Section 3.2  Delivery of Ironware, Hardware.  (1) Ironside shall deliver
                  ------------------------------
the Software and any modifications thereto to the Customer on CD-ROM via courier
or via the internet, as the Customer may elect.  Additionally, Ironside shall
deliver an "Ironside Powered Server Product Overview", "Ironside Powered Server
Configuration Manual", "Ironside Powered Server Gateway Development Guide",
"Ironside Powered Server Documentation Index", "C Gateway Development", "ILE/RPG
Gateway Development", "Ironside Powered Server for NT Release Notes", "Ironside
Powered Server for NT Installation and Operations Guide", "Ironside Powered
Server for AS400 Release Notes", "Ironside Powered Server for AS400 Installation
and Operations Guide" (collectively, referred to hereinafter as amended from
time to time as the "Documentation") and any modifications thereto, to the
Customer via courier.

     (2) In the event the Customer requires a dongle hardware device, Ironside
shall be responsible for costs incurred in respect of the delivery of all orders
by the Customer for such dongle hardware device.

     Section 3.3  Source Code Escrow Agreement.  Forthwith upon execution of
                  ----------------------------
this Agreement, Ironside shall enroll the Customer as a beneficiary in a source
code escrow agreement in respect of Ironware.

     Section 3.4  Taxes.  The Customer shall be responsible for all taxes
                  -----
including sales, use, property, excise, value added and gross receipts levied on
this Agreement or Ironware.  Customer agrees that if any of the foregoing are
paid by Ironside, Customer shall immediately reimburse Ironside for the amount
paid plus any expenses incurred in connection therewith and interest thereon.
In the event that Customer is required by any applicable law to deduct any
amount from the amounts to be paid to Ironside under this Agreement on account
of withholding taxes or any other taxes or levies of any kind, Customer agrees
that it shall pay all such additional amounts so that the net amounts received
by Ironside are the amount specified herein.

     Section 4.1  Proprietary Rights.  (1) The Customer hereby covenants that it
                  ------------------
shall not, and shall not permit others within its control, to copy or duplicate
Ironware or the Documentation.

     The Customer acknowledges that Ironware provided under this Agreement have
substantial monetary value and are considered TRADE SECRET, PROPRIETARY and/or
CONFIDENTIAL material of Ironside, and that Ironside retains ownership of all
rights, title and interest to its Ironware.  All enhancements and modifications
made by Ironside will remain proprietary to Ironside.
<PAGE>

     (2) The Customer acknowledges that Ironware bears a copyright legend which
in no way reduces the TRADE SECRET, PROPRIETARY, and/or CONFIDENTIAL nature of
Ironware.  Ironware shall be considered Confidential Information under the terms
of Article 5 hereof.

     Section 4.2  Reverse Engineering Proprietary Notices.  The Customer shall
                  ---------------------------------------
not:  (a) reverse-engineer, decompile or alter Ironware or any part thereof; (b)
distribute Ironware or any part thereof to any third parties; and, (c) remove
the copyright, trade secret or other proprietary legends or notices which appear
on Ironware.

     Section 5.1  Ironside Information. (1) "Confidential Information" means
                  --------------------
Ironware and any information provided by Ironside to the Customer about Ironware
stamped "confidential" or identified as such in writing.

     (2) Customer agrees that the Confidential Information shall be kept
confidential and shall not be used or disclosed by Customer or by any of its
directors, officers, employees, agents, solicitors, accountants or financial
advisors (collectively the "Representatives") except in accordance with the
terms of this Agreement.

     (3) Customer may transmit the Confidential Information to its
Representatives, but only to the extent that such Representatives:  (a) need to
know the Confidential Information for the purpose of facilitating this
Agreement; (b) are informed by Customer of the confidential nature of the
Confidential Information; and (c) agree in writing to be bound by a
confidentiality agreement with Ironside and Customer on terms substantially the
same as those set forth in this Agreement.

     (4) The confidentiality provisions of this Agreement shall not apply to
such portions of the Confidential Information which:  (a) are or become
generally available to the public other than as a result of a disclosure in
violation of this Agreement; (b) becomes available to the Customer on a non-
confidential basis from a source other than Ironside or its Representatives,
provided that such a source is not bound by a confidentiality agreement with
Ironside or its Representatives or otherwise prohibited from transmitting the
Confidential Information to the customer by a contractual, legal or fiduciary
obligation; (c) was known to the Customer on a non-confidential basis prior to
its disclosure by Ironside; (d) is independently developed by the Customer
without reference to the Confidential Information; or (e) the Customer is
obligated to disclose pursuant to statutory or regulatory requirements or an
order of a court of competent jurisdiction.

     Section 5.2  Public Announcements.  Neither party shall publicly announce
                  --------------------
or disclose the existence of this Agreement or its terms and conditions, or
advertise or release any publicity regarding this Agreement, without the prior
written consent of the other party.  Each of Ironside and the Customer may use
the name of the other in any public disclosure and as a reference in its
respective sales calls and in its customer lists and the use of such name shall
be consistent with good business practices.  All use of names shall bare
Trademark notification as requested by either party.

     Section 6.1  Ironware Warranty.  (1) Ironside warrants to Customer that it
                  -----------------
has full power and authority to grant the rights herein without the consent of
any other person, and that the license of Ironware granted pursuant to this
Agreement does not infringe any valid or subsisting Canadian or U.S. patent,
copyright or other intellectual property not owned or licensed by Ironside.

     (2) Ironside warrants that the Software will perform substantially in
accordance with the Documentation.  Ironside will provide reasonable assistance
to the Customer in attempting to correct or bypass any material defects or
errors in the Software in order that the Software operates substantially in
<PAGE>

accordance with the Documentation.  Such services are provided in consideration
of the Annual Maintenance Fee.  In the event that a defect reported by the
Customer proves in fact to be a hardware, operating system or ocher problem not
attributable to the Software, then the Customer shall pay Ironside's
professional services rates, as detailed in Schedule "B".

     (3) Ironside warrants that the Documentation is accurate in all material
respects; however, the Customer acknowledges that the Software is subject to
continued revision and may, at times, be at variance with the Documentation and
accordingly, may contain miner defects or errors.

     (4) Customer must specifically identify to Ironside the nature of any
perceived Software defect which causes the Software not to conform substantially
to the functional specifications and specifically describe the conditions under
which the perceived defect occurs.  On Ironside's request, Customer shall
deliver such information in written form.  Customer shall provide Ironside with
sufficient test time and support to duplicate the problem, verify the problem is
with the Software, and confirm that the problem has been corrected.

     (5) Should Ironside fail to correct or bypass any material defects or
errors in the Software at any time during the term of this Agreement such that
the Software fails to operate substantially in accordance with the
Documentation, the Customer's sole and exclusive remedy shall be to terminate
this Agreement by written notice and according to the termination provisions
hereof, and receive a refund of such Annual Maintenance Fees actually paid by
the Customer to Ironside during the then current license year.  Notice of such
termination must be received by Ironside within ten (10) days following the date
upon which Ironside failed to correct or bypass the material defect or error in
the Software, such that the Software fails to operate substantially in
accordance with the Documentation.  IN NO EVENT SHALL IRONSIDE BE LIABLE
HEREUNDER FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES
(INCLUDING, WITHOUT LIMITATION, LOSS OF PROFITS), RESULTING FROM ANY BREACH OF
ANY REPRESENTATION, WARRANTY OR COVENANT IN THIS AGREEMENT OR OTHERWISE ARISING
UNDER CONTRACT, OR BY OPERATION OF LAW.

     (6) The Software is designed to manage data involving dates including
single-century and multi-century transactions, and will not cause an abnormally
ending scenario within the application or generate incorrect values or invalid
results involving either single-century or multi-century transactions, provided
at all times that all century dates transmitted to the Software from any host
computer are accurately transmitted in a four digit date format (for example
2001).

     Section 6.2  Warranty Obligations Limitations.  Ironside's warranty
                  --------------------------------
obligations set forth in Section 6.1 shall be void in the event of any of the
following occurring:  (a) the Customer modifies Ironware without the prior
written consent of Ironside; (b) the Customer attempts to use the Software in a
manner or under conditions other than those specified by Ironside in the
Documentation attached hereto as Schedule C; (c) the release of Software that
Customer is operating is no longer current, meaning a release of Ironware that
has been replaced by a new release of Ironware for more than ninety (90) days;
(d) any failure of Ironware is due to the misuse or negligence of any person
other than Ironside, its employees or agents; (e) the non-payment of a Software
License Fee, the End User License Fee or the Annual Maintenance Fee for more
than thirty (30) days after the date such payment is due; (f) a claim of
infringement is made against Ironware and Ironside elects to terminate this
Agreement pursuant to Section 6.4.
<PAGE>

     Section 6.3  Warranty Exclusion. (1) IRONSIDE AND CUSTOMER ACKNOWLEDGE AND
                  ------------------
AGREE THAT THIS AGREEMENT PROVIDES LICENSES AND SERVICES AND IS NOT A SALE OF
GOODS.

     (2) The parties agree that this Agreement is not subject to and shall not
be interpreted by the United Nations Convention on Contracts for the
International Sale of Goods.

     (3) THE WARRANTIES CONTAINED IN SECTION 6.1 ARE IN LIEU OF ALL OTHER
WARRANTIES OR CONDITIONS, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE
IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY, MERCHANTABLE QUALITY,
FITNESS FOR A PARTICULAR PURPOSE, OR INFRINGEMENT OR THOSE ARISING BY STATUTE OR
OTHERWISE IN LAW OR FROM THE COURSE OF DEALING OR USAGE OF TRADE.  IRONSIDE DOES
NOT REPRESENT OR WARRANT THAT IRONWARE WILL MEET ANY OR ALL OF THE CUSTOMER'S
PARTICULAR REQUIREMENTS, THAT THE OPERATION OF THE SOFTWARE WILL OPERATE ERROR-
FREE OR UNINTERRUPTED, OR THAT ALL PROGRAMMING ERRORS IN THE SOFTWARE CAN BE
FOUND IN ORDER TO BE CORRECTED.

     Section 6.4  Infringement.  (1) If any Ironware is in Ironside's opinion
                  ------------
likely to or does become the subject of a claim for intellectual property
infringement, Ironside, at its sole option, shall:  (a) procure for the
Customer, at Ironside's expense, the right to continue to use Ironware; (b)
replace or modify Ironware, at Ironside's expense, so that Ironware becomes non-
infringing; or (c) terminate the Agreement and return the pro-rata amount of the
Customer's Annual Maintenance Fees in respect of the current license year in the
event that Ironside considers neither (a) or (b) are reasonably feasible.

     (2) THE FOREGOING STATES THE ENTIRE LIABILITY OF IRONSIDE WITH RESPECT TO
CLAIMS BY THE CUSTOMER FOR INTELLECTUAL PROPERTY INFRINGEMENT, AND EXCEPT AS
PROVIDED IN THIS SECTION, IRONSIDE SHALL HAVE NO LIABILITY TO CUSTOMER
WHATSOEVER FOR ANY LOSS OR DAMAGE OR INFRINGEMENT CLAIMS AGAINST CUSTOMER BY
THIRD PARTIES ARISING OUT OF OR RELATED TO ANY ALLEGATION OR DETERMINATION THAT
CUSTOMER'S USE OF IRONWARE INFRINGES ANY COPYRIGHT OR OTHER PROPRIETARY OR
INTELLECTUAL PROPERTY RIGHT.  If requested by Ironside, Customer shall give
Ironside complete authority for the defense of any claim of copyright
infringement.

     Section 6.5  Limitation of Liability.  IRONSIDE'S LIABILITY FOR ANY BREACH
                  -----------------------
OF THE REPRESENTATIONS, WARRANTIES, CONDITIONS OR COVENANTS OR FOR ANY OF THE
OTHER PROVISION OF THIS AGENT, OR FOR ANY OTHER BREACH GIVING RISE TO LIABILITY,
INCLUDING A BREACH OF A CONDITION OR FUNDAMENTAL BREACH OR BREACHES, OR IN ANY
OTHER WAY ARISING OUT OF OR RELATED TO THIS AGREEMENT FOR ANY CAUSE OF ACTION
WHATSOEVER AND REGARDLESS OF THE FORM OF ACTION (INCLUDING BREACH OF CONTRACT,
STRICT LIABILITY, TORT, INCLUDING NEGLIGENCE OR ANOTHER LEGAL OR EQUITABLE
THEORY), SHALL BE LIMITED TO THE CUSTOMER'S ACTUAL, DIRECT, PROVABLE DAMAGES IN
AN AMOUNT NOT TO EXCEED THE TOTAL AMOUNT ACTUALLY PAID TO IRONSIDE IN RESPECT OF
THE SOFTWARE LICENSE FEE, THE END USER LICENSE FEE AND THE ANNUAL MAINTENANCE
FEE.  THE CUSTOMER ACKNOWLEDGES AND AGREES THAT IN NO EVENT WILL IRONSIDE BE
LIABLE FOR DAMAGES IN RESPECT OF INCIDENTAL, PUNITIVE, EXEMPLARY, INDIRECT,
SPECIAL OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED T0, LOST BUSINESS
REVENUE, LOST PROFITS, FAILURE TO REALIZE EXPECTED SAVINGS, LOSS OF DATA, LOSS
OF
<PAGE>

BUSINESS OPPORTUNITY, EVEN IF IRONSIDE HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES. THE CUSTOMER ACKNOWLEDGES AND AGREES THAT IN NO EVENT WILL
IRONSIDE'S DIRECTORS, OFFICERS, EMPLOYEES OR SHAREHOLDERS BE LIABLE FOR ANY
DAMAGES, INCLUDING DIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY, INDIRECT, SPECIAL,
CONSEQUENTIAL OR ANY OTHER DAMAGES ARISING OUT OF OR RELATED TO THIS AGREEMENT.

     Section 6.6  Indemnification, Remedies:  (1) The Customer shall indemnify
                  -------------------------
and save Ironside and its directors, officers, employees and representatives (in
respect of whom Ironside hereby acts as agent and trustee) harmless of and from
any loss or expense, (including reasonable attorney's fees) suffered by, imposed
upon or asserted against Ironside by any third party as a result of, in respect
of, connected with or arising out of, under or pursuant to (i) any breach of
covenants of Section 4.1, Section 4.2, Section 5.1 or (ii) any failure of the
Customer to perform or observe the Customer's confidentiality obligations set
forth in this Agreement.

     (2) The Customer agrees that a breach of the confidentiality obligations
set forth in this Agreement may cause immediate and irreparable monetary damage
to Ironside and shall entitle Ironside to seek injunctive relief in addition to
all other remedies.

     Section 6.7  Indemnification.  Ironside agrees to indemnify, defend and
                  ---------------
hold Customer harmless from and against any loss, cost, damage, liability, or
expense (including reasonable attorney's fees) suffered or incurred by Customer
in connection with any infringement claim made by a third party, provided
however that Customer permits Ironside to defend, compromise or settle such
claim of infringement as Ironside in its sole discretion may determine, and
provides Ironside all available information, assistance and authority to enable
Ironside to do so, and further provided any such claim of infringement does not
depend upon the use of Ironware in conjunction with software not developed or
licensed by Ironside or other products not licensed or developed by Ironside or
upon a use of Ironware in an unusual or unintended manner.

     Section 7.1  Term.  This Agreement shall become effective upon execution by
                  ----
all Parties. and shall continue in effect in perpetuity, unless otherwise
terminated in accordance with the terms of this Agreement.

     Section 7.2  Termination for Cause.  If either Party shall be in breach of
                  ---------------------
its obligations under this Agreement (the "Defaulting Party"). the Party not in
breach (the "Non-Defaulting Party") shall give notice to the Defaulting Party
stating the nature of the breach with reference to the Agreement and setting out
a period of time that is reasonable in the circumstances within which the
Defaulting Party must cure its breach.  If the Defaulting Party has not cured or
is not, in the reasonable judgment of the Non-Defaulting Party, actively and
diligently seeking to cure the said default by the end of the time period stated
in such notice, the Non-Defaulting Party shall have the right to terminate this
Agreement immediately upon delivering a second notice to this effect to the
Defaulting Party.  Such termination shall be without prejudice to any other
rights of the parties in law or in equity.

     Section 7.3  Termination by Ironside.  (1) This Agreement may be forthwith
                  -----------------------
terminated by Ironside upon the occurrence of any of the following:  (a) a
petition or receiving order or winding up order or similar order is issued in
respect of the Customer under the laws of any jurisdiction; (b) the Customer
makes a general assignment for the benefit of its creditors; (c) a receiver or
trustee in bankruptcy is appointed with respect to the business or property of
the Customer; (d) proceedings are initiated under any applicable insolvency or
similar law for the purpose of bankruptcy, reorganization, or liquidation of the
Customer; (e) the Customer breaches its covenants set forth in Section 4.1 and
Section 4.2; or (f) the Customer breaches
<PAGE>

the confidentiality provisions set forth in Section 5; or, (g) the Customer
breaches its covenants set forth in Section 3.1.

     (2) Ironside shall provide Customer with written notice detailing the cause
of its grounds for termination pursuant to Section 7.3.  The effect of delivery
by Ironside of such notice is that this Agreement shall forthwith be terminated
upon receipt of such notice by the Customer.  Upon such termination, except in
respect of termination pursuant to Section 7.3(1)(g), any license granted
pursuant to this Agreement shall be immediately revoked and all Ironware and
supporting materials shall forthwith be returned to Ironside by the Customer or
destroyed by the Customer, as Ironside may direct.  The Customer shall provide
Ironside with an affidavit certifying the destruction of Ironware and supporting
materials.  The effect of Ironside providing the Customer with a termination
notice pursuant to Section 7.3 is that this Agreement shall be terminated and
Ironside shall have no further obligations to the Customer.

     (3) Any termination of this Agreement pursuant to Section 7.3 shall be
without prejudice to any other rights or remedies to which Ironside may be
entitled hereunder or at law and shall not affect any accrued rights or the
coming into or continuance in force of any provision hereof which is expressly
or by implication intended to come into or continue in force on or after such
termination.

     (4) Upon termination of this Agreement pursuant to Section 7.2. Section
7.3(1)(a), (b), (c), (d), (e), (f), or (g) the customer shall forthwith return
the dongle and Ironware to Ironside and shall have no further right to use
Ironware.

     Section 7.4  Termination by the Customer.  (1) This Agreement may be
                  ---------------------------
forthwith terminated by the Customer upon the occurrence of any of the
following:  (a) a petition or receiving order or winding tip order or similar
order is issued in respect of Ironside under the laws of any jurisdiction; (b)
Ironside makes a general assignment for the benefit of its creditors; (c) a
receiver or trustee in bankruptcy is appointed with respect to the business or
property of Ironside; or (d) proceedings are initiated under any applicable
insolvency or similar law for the purpose of bankruptcy, reorganization, or
liquidation of Ironside.

     The Customer shall provide Ironside with written notice detailing the cause
of its grounds for termination pursuant to this Section 7.4.  The effect of
delivery by the Customer of such notice is that this Agreement shall forthwith
be terminated upon receipt of such notice by Ironside.  Upon such termination,
the Customer may access the source code, pursuant to the terms of the source
code escrow agreement.

     (2) The Customer may terminate this Agreement and the licenses granted
hereunder by giving Ironside ninety (90) days written notice at any time on or
after the second anniversary of the date of execution of this Agreement and the
customer shall leave no obligation to pay any Annual Maintenance fees
thereafter.

     Section 8.1  Arbitration.  Except as is expressly provided in this
                  -----------
Agreement, if the patties involved in the dispute do not reach a solution after
reasonable efforts to do so pursuant to Section 8.1, then upon written notice by
any parry to the other, such dispute shall be finally sealed by arbitration.
Such arbitration shall be conducted in accordance with the International
Arbitration Rules (the "Rules") of the America Arbitration Association (the
"AAA") except as such Rules ate superseded by this Agreement.  The decision or
award of the arbitrator shall be in writing, binding upon the parties, and shall
be enforceable by judgement entered in any court of competent jurisdiction.

     Section 8.2  Arbitration Procedure.  Any arbitration commenced by a party
                  ---------------------
pursuant to Section 8.2 shall be based upon the following:
<PAGE>

     (a)  the arbitration tribunal shall consist of one arbitrator appointed by
          mutual agreement of the parties involved who is qualified by education
          and training to pass upon the particular matter to be decided, or in
          the event of failure to agree within 30 business days after referral
          of the dispute to arbitration, either party may apply to the AAA
          administrator to appoint an arbitrator in accordance with the Rules;

     (b)  the arbitrator shall be instructed that time is of the essence in
          proceeding with his/her determination of the dispute and, in any
          event, the arbitrator shall endeavor to render a decision and award
          within 60 days of the final appointment of the arbitrator;

     (c)  the arbitration shall take place in Toronto, Ontario, unless the
          parties mutually agree, in writing, upon a different location;

     (d)  the law to be applied in connection with the arbitration shall be as
          set forth in Section 9.6 hereof; and,

     (e)  judgment upon the award rendered may be entered in any court of
          competent jurisdiction, or, application may be made to such court for
          a judicial recognition of the award or an order of enforcement
          thereof, as the case may be; and,

     (f)  the arbitration award shall deal with the question of costs of
          arbitration and all matters related thereto.

     Section 8.3  Injunctive Relief.  Nothing in this Article 8 shall prevent a
                  -----------------
party from seeking injunctive relief in connection with this Agreement at any
time prior to or during the pendency of any proceedings set forth in Sections
8.1 through 8.2 hereof.

     Section 9.1  Currency.  All references in this Agreement or any Schedule to
                  --------
dollars, unless otherwise specifically indicated, are expressed in the currency
of the United States of America.

     Section 9.2  Severability.  Article or Section, Subsection or other
                  ------------
subdivision of this Agreement or any other provision of this Agreement which is,
or becomes, illegal, invalid or unenforceable shall be severed from this
Agreement and be ineffective to the extent of such illegality, invalidity or
unenforceability and shall not affect or impair the retraining provisions hereof
or thereof.

     Section 9.3  Entire Agreement.  This Agreement constitutes the entire
                  ----------------
agreement between the Parties pertaining to the subject matter hereof and
supersedes all prior agreements, understandings, negotiations and discussions,
whether oral or written, of the Parties.  There are no representations,
warranties, conditions or other agreements, express or implied, statutory or
otherwise, between the Parties in connection with the subject matter of this
Agreement, except as specifically set forth herein and therein.

     Section 9.4  Amendments.  This Agreement may only be amended, modified or
                  ----------
supplemented by a written agreement signed by all of the Parties.

     Section 9.5  Waiver.  No waiver of any of the provisions of this Agreement
                  ------
shall be deemed to constitute a waiver of any other provision (whether or not
similar), nor shall such waiver constitute a waiver or continuing waiver unless
otherwise expressly provided in writing duly executed by the party to be bound
thereby.
<PAGE>

     Section 9.6  Governing Law.  This Agreement shall be governed by and
                  -------------
interpreted and enforced in accordance with the laws of the State of Delaware.

     Section 9.7  Incorporation of Schedules.  The following are the schedules
                  --------------------------
attached to and incorporated in this Agreement:

     Schedule A - Fees and License Particulars
     Schedule B - Professional Services
     Schedule C - Documentation; Approved Browsers

     Section 9.8  Enurement.  This Agreement shall enure to the benefit of and
                  ---------
be binding upon the Parties and their respective successors and permitted
assigns.

     Section 9.9  Force Majeure.  Except as expressly provided otherwise in this
                  -------------
Agreement, dates and tittles by which a party is required to render performance
under this Agreement shall be postponed automatically to the extent and for the
period of time that such party is prevented from meeting them by reason of any
cause beyond its reasonable control.  The party prevented from rendering
performance must, however, notify the other party immediately and in detail of
the commencement and nature of such cause and the probable consequences thereof.
Such party must use its best efforts to render performance in a timely manner
utilizing to such end all resources reasonably required in the circumstances,
including obtaining supplies or services from other sources if same are
reasonably available.  Should such delay occur, payment of money, where
applicable, shall correspondingly be delayed.

     Section 9.10  Counterparts.  This Agreement and any amendment hereto may be
                   ------------
executed in one or more counterparts, each of which shall be deemed to be an
original by the party executing such counterpart, but all of which shall be
considered one and the same instrument.

     Section 9.11  Indefinite Duration.  Each of the Parties agree that certain
                   -------------------
rights and obligations in this Agreement are intended to be of an indefinite
duration, and shall not expire or terminate except as otherwise provided in this
Agreement, or as the Parties may otherwise agree in writing.

     Section 9.12  Survivorship.  The provisions of Article 4.1, 4.2, 5.1. 5.2,
                   ------------
6.6. and 8.3 shall survive any termination of this Agreement for a period of
three (3) years or, if shorter, the longest period of time permitted under
applicable law.

     Section 9.13  Non-Solicitation.  Party acknowledges that they shall not
                   ----------------
hire or attempt to hire, induce or attempt to induce, solicit or attempt to
solicit, any of the employees of the other Party.  Should any employee of one of
the Parties be hired by the other Party, the hiring Party shall pay an amount of
200% of the salary of the person hired to the other Party.

     Section 9.14  Notice.  (1) Any notice required to be given under this
                   ------
Agreement shall be in writing and shall be sufficiently given (i) if delivered
personally or (ii) if mailed (other than during any disruption of postal
services) by registered mail, postage prepaid and addressed to the relevant
party as indicated below or (iii) if given by electronic means by forwarding to
the party's fax number.  (2) Any such notice shall be deemed to have been given
and to have been received when delivered, if so delivered, on the second
business day after the date of mailing (other than during any disruption of
postal services), if so mailed and on the date such notice was sent, if so given
by electronic means:
<PAGE>

     If to Ironside, at:

          Ironside Technologies Inc.
          500 Hood Road
          4th Floor
          Markham, Ontario
          L3R 0P6
          Attention: Secretary

     Or, if to Customer, at:

          _________________________
          _________________________
          _________________________

     IN WITNESS WHEREOF this Agreement is executed by the Parties on the ____
day of _____________, 1999.

[Customer]

Per:_______________________________________
          (Authorized Signing Officer)

_________________________________
(Print or Type Name)

_________________________________
(Title)

Ironside Technologies Inc.

Per: ______________________________
          (Authorized Signing Officer)

_________________________________
(Print or Type Name)

_________________________________
(Title)
<PAGE>

                                  SCHEDULE "A"
                          LICENSE FEES AND PARTICULARS

Date:_____________________________

Customer Name:____________________
Customer Address:  __________________
                   __________________
                   __________________

Host System Serial #:
<TABLE>
<CAPTION>

<S>                 <C>                     <C>             <C>                 <C>                 <C>
---------------------------------------------------------------------------------------------------------------------
Licensed Products  # of User Services       # Users         End User License    Software License         Annual
                                                                  Fee                 Fee           Maintenance Fee
---------------------------------------------------------------------------------------------------------------------

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

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

---------------------------------------------------------------------------------------------------------------------
</TABLE>

          SOFTWARE LICENSE FEE:_____________________ (Plus taxes where
applicable)
          END USER LICENSE FEE $_____________________ (Plus taxes where
applicable)
          ANNUAL. MAINTENANCE FEE:________________ (Plus taxes where applicable)

Each Ironworks "User Service" provides access to an order management system on a
single Host System Serial # for the customers of a single corporate entity.

Software License Fee - Customer agrees to pay Ironside 100% of the Software
License Fee upon execution of this Agreement.

End User License Fee - In addition to the Software License Fee, Customer agrees
to pay Ironside 50% of the End User License Fee upon execution of this Agreement
and the remaining 50% of the End User License Fee on or before
______________________, 19__.

Annual Maintenance Fee - The initial Annual Maintenance Fee is due to Ironside
on ________________, 19__.  Customer agrees to pay Ironside 100% of the Annual
Maintenance fee upon each anniversary of this agreement.  The Annual Maintenance
Fee may be increased annually by Ironside by providing the Customer with notice
not less than thirty (30) days prior to the end of an anniversary of this
Agreement.  Ironside agrees not to increase its Annual Maintenance Fee by more
than six percent (6%) of the dollar amount charged in the previous year.

Software Services provide program updates and new system versions, as well as
new releases of Internet Browsers.  These updates become part of the Licensed
Products and include at no additional charge the time incurred to evaluate
program problems, correct program errors, copy the program from Ironside's
computer, a mail/delivery charges.  Perfect compatibility for blending old and
new versions cannot be assured.  Helpline Support provides unlimited telephone
support during the business hours of (8:30 am. - 5:00 p.m. Eastern Time Zone,
Monday-Friday).  This support includes at no additional charge telephone and
research time
<PAGE>

performed by the Helpline staff. Helpline Support also includes Electronic
Customer Support which provides Customer with limited on-line access to certain
Ironside information, such access being provided on an as-is basis and with the
understanding that Customer will not tamper with or abuse Ironside's systems or
data. Note, however, that Helpline Support does NOT cover training, setup of
hardware or software, and programming consultation. Additional time of coverage
may be available by written agreement of the parties and at Ironside's then
current prices, terms and conditions.

[Customer]                            Ironside Technologies Inc.

Per:__________________________        Per:__________________________
(Authorized Signing Officer)          (Authorized Signing Officer)

_____________________________         ______________________________
(Print or Type Name)                  (Print or Type Name)

________________________              ______________________________
(Title)                               (Title)

--------------------------------------------------------------------------------
<PAGE>

                                  SCHEDULE "B"
                             PROFESSIONAL SERVICES
--------------------------------------------------------------------------------

Nature of support services      Rate per hour
--------------------------      -------------
<TABLE>
<CAPTION>

<S>                                <C>
Gateway Application Development    $300
Installation support               $250
Education and training             $250
Graphic artist                     $250
HTML page creation                 $250
Network support                    $250
Implementation consulting          $300
</TABLE>
<PAGE>

                                  SCHEDULE "C"
                                 DOCUMENTATION

The following documentation is available from the Ironside website at
http//www.ironside.com in the "Developers Only" section:

          Ironside Powered Server Product Overview
          Ironside Powered Server Configuration Manual
          Ironside Powered Server Gateway Development Guide
          Ironside Powered Server Documentation Index
          C Gateway Development
          ILE/RPG Gateway Development

          Ironside Powered Server for NT Release Notes
          Ironside Powered Server for NT Installation and Operations Guide

          Ironside Powered Server for AS400 Release Notes
          Ironside Powered Server for AS400 installation and Operations Guide

                               APPROVED BROWSERS

BETA VERSIONS NOT SUPPORTED
---------------------------

Microsoft:
---------
          Internet Explorer 3.0, 3.01, 3.02, 4.0 for Windows 95 and Windows NT
          Internet Explorer 3.02 for Windows 3.1
          Internet Explorer 4.0 for Windows 98

Netscape:
--------
          Navigator 2.0, 2.02, 3.0, 3.01, 4.01, 4.02, 4.03 for Windows 95 and
          Windows NT
          Navigator 4.05 and 4.06 for Windows 98<PAGE>

                                                                     Exhibit 4.1

                            READ-RITE CORPORATION

                      1998 NONSTATUTORY STOCK OPTION PLAN

     1.   Purposes of the Plan. The purposes of this Nonstatutory Stock Option
          --------------------
          Plan are:

          .    to attract and retain the best available personnel for positions
               of substantial responsibility,

          .    to provide additional incentive to Employees and Consultants, and

          .    to promote the success of the Company's business.

          Options granted under the Plan will be Nonstatutory Stock Options.

     2.   Definitions.  As used herein, the following definitions shall apply:
          -----------

          (a)   "Administrator" means the Board or any of its Committees as
                 -------------
shall be administering the Plan, in accordance with Section 4 of the Plan.

          (b)   "Applicable Laws" means the requirements relating to the
                 ---------------
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any foreign country or jurisdiction where Options are, or will be, granted under
the Plan.

          (c)   "Board" means the Board of Directors of the Company.
                 -----

          (d)   "Code" means the Internal Revenue Code of 1986, as amended.
                 ----

          (e)   "Committee" means a committee of Directors appointed by the
                 ---------
Board in accordance with Section 4 of the Plan.

          (f)   "Common Stock" means the Common Stock of the Company.
                 ------------

          (g)   "Company" means Read-Rite Corporation, a Delaware corporation.
                 -------

          (h)   "Consultant" means any person, including an advisor, engaged by
                 ----------
the Company or a Parent or Subsidiary to render services to such entity.

          (i)   "Director" means a member of the Board.
                 --------

          (j)   "Disability" means total and permanent disability as defined in
                 ----------
Section 22(e)(3) of the Code.
<PAGE>

           (k)   "Employee" means any person employed by the Company or any
                  --------
Parent or Subsidiary of the Company. A Service Provider shall not cease to be an
Employee in the case of (i) any leave of absence approved by the Company or (ii)
transfers between locations of the Company or between the Company, its Parent,
any Subsidiary, or any successor. Neither service as a Director nor payment of a
director's fee by the Company shall be sufficient to constitute "employment" by
the Company.

           (l)   "Exchange Act" means the Securities Exchange Act of 1934, as
                  ------------
amended.

           (m)   "Fair Market Value" means, as of any date, the value of Common
                  -----------------
Stock determined as follows:

                 (i)    If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for
the last market trading day prior to the time of determination, as reported in
The Wall Street Journal or such other source as the Administrator deems
reliable;

                 (ii)   If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of
a Share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock on the last market trading day prior to the day of
determination, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable;

                 (iii)  In the absence of an established market for the Common
Stock, the Fair Market Value shall be determined in good faith by the
Administrator.

           (n)   "Notice of Grant" means a written or electronic notice
                  ---------------
evidencing certain terms and conditions of an individual Option grant. The
Notice of Grant is part of the Option Agreement.

           (o)   "Officer" means a person who is an officer of the Company
                  -------
within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

           (p)   "Option" means a nonstatutory stock option granted pursuant to
                  ------
the Plan, that is not intended to qualify as an incentive stock option within
the meaning of Section 422 of the Code and the regulations promulgated
thereunder.

           (q)   "Option Agreement" means an agreement between the Company and
                  ----------------
an Optionee evidencing the terms and conditions of an individual Option grant.
The Option Agreement is subject to the terms and conditions of the Plan.

           (r)   "Option Exchange Program" means a program whereby outstanding
                  -----------------------
options are surrendered in exchange for options with a lower exercise price.
<PAGE>

           (s)   "Optioned Stock" means the Common Stock subject to an Option.
                  --------------

           (t)   "Optionee" means the holder of an outstanding Option granted
                  --------
under the Plan.

           (u)   "Parent" means a "parent corporation," whether now or hereafter
                  ------
existing, as defined in Section 424(e) of the Code.

           (v)   "Plan" means this 1998 Nonstatutory Stock Option Plan.
                  ----

           (w)   "Service Provider" means an Employee including an Officer,
                  ----------------
Consultant or Director.

           (x)   "Share" means a share of the Common Stock, as adjusted in
                  -----
accordance with Section 13 of the Plan.

           (y)   "Subsidiary" means a "subsidiary corporation," whether now or
                  ----------
hereafter existing, as defined in Section 424(f) of the Code.

     3.    Stock Subject to the Plan. Subject to the provisions of Section 13 of
           -------------------------
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan is six million (6,000,000) Shares. The Shares may be authorized,
but unissued, or reacquired Common Stock.

           If an Option expires or becomes unexercisable without having been
exercised in full, or is surrendered pursuant to an Option Exchange Program, the
unpurchased Shares which were subject thereto shall become available for future
grant or sale under the Plan (unless the Plan has terminated).

     4.    Administration of the Plan.
           --------------------------

           (a)   Administration. The Plan shall be administered by (i) the
                 --------------
Board or (ii) a Committee, which Committee shall be constituted to satisfy
Applicable Laws.

           (b)   Powers of the Administrator.  Subject to the provisions of the
                 ---------------------------
Plan, and in the case of a Committee, subject to the specific duties delegated
by the Board to such Committee, the Administrator shall have the authority, in
its discretion:

                  (i)     to determine the Fair Market Value of the Common
Stock;

                  (ii)    to select the Service Providers to whom Options may be
granted hereunder;

                  (iii)   to determine whether and to what extent Options are
granted hereunder;
<PAGE>

                  (iv)    to determine the number of shares of Common Stock to
be covered by each Option granted hereunder;

                  (v)     to approve forms of agreement for use under the Plan;

                  (vi)    to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any award granted hereunder. Such
terms and conditions include, but are not limited to, the exercise price, the
time or times when Options may be exercised (which may be based on performance
criteria), any vesting acceleration or waiver of forfeiture restrictions, and
any restriction or limitation regarding any Option or the shares of Common Stock
relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine;

                  (vii)   to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stock covered
by such Option shall have declined since the date the Option was granted;

                  (viii)  to institute an Option Exchange Program;

                  (ix)    to construe and interpret the terms of the Plan and
awards granted pursuant to the Plan;

                  (x)     to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

                  (xi)    to modify or amend each Option (subject to Section
14(b) of the Plan), including the discretionary authority to extend the post-
termination exercisability period of Options longer than is otherwise provided
for in the Plan;

                  (xii)   to authorize any person to execute on behalf of the
Company any instrument required to effect the grant of an Option or previously
granted by the Administrator;

                  (xiii)  to determine the terms and restrictions applicable to
Options;

                  (xiv)   to allow Optionees to satisfy withholding tax
obligations by electing to have the Company withhold from the Shares to be
issued upon exercise of an Option or Stock Purchase Right that number of Shares
having a Fair Market Value equal to the amount required to be withheld. The Fair
Market Value of the Shares to be withheld shall be determined on the date that
the amount of tax to be withheld is to be determined. All elections by an
Optionee to have Shares withheld for this purpose shall be made in such form and
under such conditions as the Administrator may deem necessary or advisable; and

                  (xv)    to make all other determinations deemed necessary or
advisable for administering the Plan.
<PAGE>

            (c)   Effect of Administrator's Decision. The Administrator's
                  ----------------------------------
decisions, determinations and interpretations shall be final and binding on all
Optionees and any other holders of Options.

     5.    Eligibility.  Options may be granted to Service Providers; provided,
           -----------
however, that notwithstanding anything to the contrary contained in the Plan,
Options may not be granted to Officers or Directors.

     6.    Limitation.  Neither the Plan nor any Option shall confer upon an
           ----------
Optionee any right with respect to continuing the Optionee's relationship as a
Service Provider with the Company, nor shall they interfere in any way with the
Optionee's right or the Company's right to terminate such relationship at any
time, with or without cause.

     7.    Term of Plan. The Plan shall become effective upon its adoption by
           ------------
the Board. It shall continue in effect for ten (10) years, unless sooner
terminated under Section 14 of the Plan.

     8.    Term of Option. The term of each Option shall be stated in the Option
           --------------
Agreement.

     9.    Option Exercise Price and Consideration.
           ---------------------------------------

           (a)    Exercise Price. The per share exercise price for the Shares to
                  --------------
be issued pursuant to exercise of an Option shall be determined by the
Administrator, provided, however, that such exercise price shall be equal to or
in excess of the fair market value of the Company's common stock on the date of
such grant.

           (b)    Waiting Period and Exercise Dates.  At the time an Option is
                  ---------------------------------
granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions which must be satisfied before the
Option may be exercised.

           (c)    Form of Consideration.  The Administrator shall determine the
                  ---------------------
acceptable form of consideration for exercising an Option, including the method
of payment.  Such consideration may consist entirely of:

                  (i)     cash;

                  (ii)    check;

                  (iii)   promissory note;

                  (iv)    other Shares which (A) in the case of Shares acquired
upon exercise of an option, have been owned by the Optionee for more than six
months on the date of surrender, and (B) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised;

                  (v)     consideration received by the Company under a cashless
exercise program implemented by the Company in connection with the Plan;
<PAGE>

          (vi)    a reduction in the amount of any Company liability to the
Optionee, including any liability attributable to the Optionee's participation
in any Company-sponsored deferred compensation program or arrangement;

          (vii)   such other consideration and method of payment for the
issuance of Shares to the extent permitted by Applicable Laws; or

          (viii)  any combination of the foregoing methods of payment.

    10.  Exercise of Option.
         ------------------

         (a) Procedure for Exercise; Rights as a Shareholder.  Any Option
             -----------------------------------------------
granted hereunder shall be exercisable according to the terms of the Plan and at
such times and under such conditions as determined by the Administrator and set
forth in the Option Agreement.  An Option may not be exercised for a fraction of
a Share.

          An Option shall be deemed exercised when the Company receives: (i)
written or electronic notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised.  Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan.  Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such Shares promptly after the
Option is exercised.  No adjustment will be made for a dividend or other right
for which the record date is prior to the date the Shares are issued, except as
provided in Section 12 of the Plan.

          Exercising an Option in any manner shall decrease the number of Shares
thereafter available, both for purposes of the Plan and for sale under the
Option, by the number of Shares as to which the Option is exercised.

         (b) Termination of Relationship as a Service Provider.  If an Optionee
             -------------- ----------------------------------
ceases to be a Service Provider, other than upon the Optionee's death or
Disability, the Optionee may exercise his or her Option, but only within such
period of time as is specified in the Option Agreement, and only to the extent
that the Option is vested on the date of termination (but in no event later than
the expiration of the term of such Option as set forth in the Option Agreement).
In the absence of a specified time in the Option Agreement, the Option shall
remain exercisable for three (3) months following the Optionee's termination.
If, on the date of termination, the Optionee is not vested as to his or her
entire Option, the Shares covered by the unvested portion of the Option shall
revert to the Plan.  If, after termination, the Optionee does not exercise his
or her Option within the time specified by the Administrator, the Option shall
terminate, and the

                                       6
<PAGE>

Shares covered by such Option shall revert to the Plan.

         (c) Disability of Optionee.  In the event that the Optionee ceases to
             ----------------------
be a Service Provider as a result of the Optionee's Disability, the Optionee may
exercise his or her Option at any time within twelve (12) months from the date
of such termination, but only to the extent that the Optionee was entitled to
exercise it at the date of such termination (but in no event later than the
expiration of the term of such Option as set forth in the Notice of Grant).  If,
at the date of termination, the Optionee is not entitled to exercise his or her
entire Option, the Shares covered by the unexercisable portion of the Option
shall revert to the Plan.  If, after termination, the Optionee does not exercise
his or her Option within the time specified herein, the Option shall terminate,
and the Shares covered by such Option shall revert to the Plan.

         (d) Death of Optionee.  If an Optionee dies a Service Provider, any
             -----------------
options held by such Optionee which are then vested or which would have
otherwise vested pursuant to such Optionee's option agreement with the Company
within twelve (12) calendar months following the date of death shall be
exercisable by the Optionee's estate or a person who acquired the right to
exercise the Option by bequest or inheritance at any time within twelve (12)
months following the date of death (but in no event later than the expiration of
the Option's specified term).  To the extent that the Optionee was not entitled
to exercise an Option at the date of death pursuant to his/her option agreement
with the Company or via the acceleration provided in this Paragraph (d), or to
the extent that the Optionee's estate or a person who by bequest or inheritance
acquired the right to exercise such Option does not exercise such Option within
the time and to the extent specified herein, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.

         (e) Buyout Provisions.  The Administrator may at any time offer to buy
             -----------------
out for a payment in cash or Shares, an Option previously granted based on such
terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made.

         (f) Extension of Exercise Period for Certain Resignations.  An Optionee
             ------------------------------------------------------
who voluntarily resigns from the Company after completing not less than five (5)
years of continuous status as an Employee and accumulating not less than sixty-
five (65) "points" (as defined below) may thereafter exercise any Option(s)
vested at the effective date of resignation at any time prior to the earlier of
                                                                     -------
(i) three (3) years from the effective date of resignation, or (ii) the original
expiration date(s) of the Option(s).  For purposes herein, an Optionee shall
receive one (1) "point" for each year of such Optionee's age, and one (1) point
for each year of continuous status as an Employee.

    11.  Non-Transferability of Options.  Unless determined otherwise by the
         -------------------------------
Administrator, an Option may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee.  If the Administrator makes an Option
transferable, such Option shall contain such additional terms and conditions as
the Administrator deems appropriate.

                                       7
<PAGE>

    12.  Adjustments Upon Changes in Capitalization, Dissolution, Merger or
         ------------------------------------------------------------------
Asset Sale.
----------

         (a) Changes in Capitalization.  Subject to any required action by the
             -------------------------
shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option, and the number of shares of Common Stock which have
been authorized for issuance under the Plan but as to which no Options have yet
been granted or which have been returned to the Plan upon cancellation or
expiration of an Option, as well as the price per share of Common Stock covered
by each such outstanding Option, shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option.

         (b) Dissolution or Liquidation.  In the event of the proposed
             --------------------------
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction.  The Administrator in its discretion may provide for an Optionee to
have the right to exercise his or her Option until ten (10) days prior to such
transaction as to all of the Optioned Stock covered thereby, including Shares as
to which the Option would not otherwise be exercisable.  In addition, the
Administrator may provide that any Company repurchase option applicable to any
Shares purchased upon exercise of an Option shall lapse as to all such Shares,
provided the proposed dissolution or liquidation takes place at the time and in
the manner contemplated.  To the extent it has not been previously exercised, an
Option will terminate immediately prior to the consummation of such proposed
action.

         (c) Merger or Asset Sale.  In the event of a merger of the Company with
             --------------------
or into another corporation, or the sale of substantially all of the assets of
the Company, each outstanding Option shall be assumed or an equivalent option or
right substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation.  In the event that the successor corporation refuses to
assume or substitute for the Option, the Optionee shall fully vest in and have
the right to exercise the Option as to all of the Optioned Stock, including
Shares as to which it would not otherwise be vested or exercisable.  If an
Option becomes fully vested and exercisable in lieu of assumption or
substitution in the event of a merger or sale of assets, the Administrator shall
notify the Optionee in writing or electronically that the Option shall be fully
vested and exercisable for a period of fifteen (15) days from the date of such
notice, and the Option shall terminate upon the expiration of such period. For
the purposes of this paragraph, the Option shall be considered assumed if,
following the merger or sale of assets, the option or right confers the right to
purchase or receive, for each Share of Optioned Stock, immediately prior to the
merger or sale of assets, the consideration (whether stock, cash, or other
securities or property) received in the merger or sale of assets by holders of
Common Stock for each Share held on the effective date of the transaction (and
if holders were offered a choice of

                                       8
<PAGE>

consideration, the type of consideration chosen by the holders of a majority of
the outstanding Shares); provided, however, that if such consideration received
in the merger or sale of assets is not solely common stock of the successor
corporation or its Parent, the Administrator may, with the consent of the
successor corporation, provide for the consideration to be received upon the
exercise of the Option, for each Share of Optioned Stock to be solely common
stock of the successor corporation or its Parent equal in fair market value to
the per share consideration received by holders of Common Stock in the merger or
sale of assets.

    13.  Date of Grant. The date of grant of an Option shall be, for all
         -------------
purposes, the date on which the Administrator makes the determination granting
such Option, or such other later date as is determined by the Administrator.
Notice of the determination shall be provided to each Optionee within a
reasonable time after the date of such grant.

    14.  Amendment and Termination of the Plan.
         ---------------------------- --------

         (a) Amendment and Termination.  The Board may at any time amend, alter,
             -------------------------
suspend or terminate the Plan.

         (b) Effect of Amendment or Termination.  No amendment, alteration,
             ----------------------------------
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.
Termination of the Plan shall not affect the Administrator's ability to exercise
the powers granted to it hereunder with respect to options granted under the
Plan prior to the date of such termination.

    15.  Conditions Upon Issuance of Shares.
         ----------------------------------

         (a) Legal Compliance.  Shares shall not be issued pursuant to the
             ----------------
exercise of an Option unless the exercise of such Option and the issuance and
delivery of such Shares shall comply with Applicable Laws and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

         (b) Investment Representations.  As a condition to the exercise of an
             --------------------------
Option the Company may require the person exercising such Option to represent
and warrant at the time of any such exercise that the Shares are being purchased
only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is
required.

    16.  Inability to Obtain Authority. The inability of the Company to obtain
         -----------------------------
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company's counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

    17.  Reservation of Shares. The Company, during the term of this Plan, will
         ---------------------
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

                                       9

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