Document:

<PAGE>   1
                                                                   EXHIBIT 10.47

                               SECURITY AGREEMENT

         This Security Agreement, as amended, modified or otherwise supplemented
from time to time (this "AGREEMENT"), is made and entered into as of January 8,
2001 by and between The Santa Cruz Operation, Inc., a California corporation
with principal offices at 425 Encinal, Santa Cruz, California 95061 ("DEBTOR"),
and The Canopy Group, Inc., a Utah corporation, with principal offices at 333
South 520 West, Suite 300, Lindon, Utah 84042 ("SECURED PARTY").

                                    RECITALS

         A. In connection with the execution of the Secured Convertible
Promissory Note of even date herewith (the "NOTE"), and the Loan Agreement of
even date herewith (the "LOAN AGREEMENT") and as security for its obligations
under the Note, Debtor has agreed, among other things, to grant Secured Party a
security interest in the Collateral (as defined below) on the terms set forth in
this Agreement. An Intercreditor Agreement of even date herewith (the
"INTERCREDITOR AGREEMENT") by and among Debtor, the Secured Party and Caldera
Systems, Inc. ("CALDERA") sets forth the parties' agreement with respect to the
relative priorities of the Liens of Secured Party and Caldera.

         NOW, THEREFORE, in consideration of the foregoing recitals, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

         1. DEFINED TERMS. All capitalized terms used in this Agreement that are
listed on Exhibit A attached hereto (which is incorporated by this reference)
will have the meanings indicated thereon. Unless otherwise defined herein, all
other capitalized terms used in this Agreement will have the same meanings given
to such terms in the Note.

         2. GRANT OF SECURITY INTEREST; COLLATERAL ASSIGNMENT. As collateral
security for the prompt and complete payment and performance when due (whether
at the stated maturity, by acceleration or otherwise) of the Obligations, and
subject to Caldera's rights under the Intercreditor Agreement and Prior Liens
set forth in Exhibit B to this Agreement, Debtor hereby grants to Secured Party
a first priority security interest in all of Debtor's assets, which assets are
collectively referred to herein as the "COLLATERAL" and include, without
limitation:

                  (a) General Intangibles. All of Debtor's General Intangibles,
now existing or hereafter arising or acquired, together with the proceeds there
from. As used herein, the term "GENERAL INTANGIBLES" means all personal property
(including things in action) other than goods, accounts, chattel paper,
documents, instruments, and money, and includes, but is not limited to, business
records, deposit accounts, inventions, intellectual property, designs, patents,
patent applications, patent rights, trademarks, trademark applications,
trademark registrations, service marks, service mark applications, service
registrations, trade names, goodwill, technology, know-how, confidential
information, trade secrets, customer lists, supplier lists, copyrights,
copyright applications, copyright registrations, licenses, permits, franchises,
tax refund claims, and any

<PAGE>   2

letters of credit, guarantee claims, security interests, or other security held
by Debtor to secure any "Accounts" (as hereinafter defined).

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

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

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

                  (e) Fixtures. All of Debtor's interest in and to all fixtures
and furnishings, now owned or hereafter acquired, together with the products and
proceeds there from, all substitutes and replacements therefor, all accessories,
attachments, and other additions thereto, all tools, parts, and supplies used in
connection therewith, and all packaging, manuals, and instructions related
thereto, located on or attached to Debtor's business premises located at 425
Encinal, Santa Cruz, California 95061.

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

                  (g) Excluded Assets. Notwithstanding the foregoing, in no
event shall Collateral include, and Secured Party shall not be deemed to have an
interest in, any of Debtor's

                                       2
<PAGE>   3

right, title or interest (a) in any Intellectual Property if the grant of such
interest shall constitute or result in the abandonment, invalidation or
rendering unenforceable any right, title or interest of Debtor therein, (b) in
any license, contract or agreement to which Debtor is a party or any of its
rights or interests thereunder to the extent, but only to the extent, that such
a grant would, under the terms of such license, contract or agreement, or
otherwise, result in a breach or termination of the terms or, constitute a
default under or termination of, any such license, agreement or contract (other
than to the extent that any such term would be rendered ineffective pursuant to
the Uniform Commercial Code of any relevant jurisdiction, and any other
applicable law or principles of equity); provided that immediately upon the
ineffectiveness, lapse or termination of any such provision, the Collateral
shall include, and Debtor shall be deemed to have granted a security interest
in, all such rights and interests as if such provision had never been in effect;
(c) in connection with the Agreement and Plan of Reorganization dated July 31,
2000 (the "REORGANIZATION AGREEMENT"), whether issued to Debtor by Caldera or
Caldera International, Inc., (i) the 982,500 shares of common stock to be used
by Debtor to fulfill its prior warrant obligations, or (ii) the number of
shares, which shall not exceed 2,500,000 shares of common stock to be used in
funding employee stock options for Debtor's employees that will be transferring
to Caldera International, Inc. upon the close of the Reorganization Agreement,
and (d) in any of the outstanding capital stock of a controlled foreign
corporation (as such term is defined in the Internal Revenue Code of 1986, as
amended) in excess of 65% of the voting power of all classes of capital stock of
such controlled foreign corporation entitled to vote.

         3. REPRESENTATIONS AND WARRANTIES. Debtor hereby represents and
warrants to Secured Party that:

                  (a) Title; No Other Liens. Except for (i) the liens granted to
Secured Party pursuant to this Agreement (ii) the Prior Liens, and (iii) the
Permitted Liens, Debtor owns (and, in the case of after-acquired Collateral,
will own at the time it is acquired) all right, title and interest in and to
each item of the Collateral free and clear of any and all liens, claims,
security interests, encumbrances and restrictions of any kind. No security
agreement, financing statement or other public notice with respect to all or any
part of the Collateral is on file or of record in any public office, except such
as may have been filed in favor of Secured Party pursuant to this Agreement and
except such as may have been filed with respect to the Prior Liens or the
Permitted Liens. Debtor has provided Secured Party with copies of all
obligations exceeding $50,000 secured by a lien on any of the Collateral.

                  (b) No Consents. Debtor has all right, power and authority
necessary to grant Secured Party the security interest granted in Section 2
above, without the need for the consent or approval of any third party other
than consents or approvals that have been obtained.

                  (c) Location of Collateral. The Collateral (other than the
Intellectual Property) is located and will at all times be kept at Debtor's
office at the address indicated above, and such other premises owned or leased
by Debtor.

         4. COVENANTS. Debtor covenants and agrees with Secured Party that, from
and after the date of this Agreement until all Obligations are paid in full and
satisfied:

                                       3
<PAGE>   4

                  (a) Further Documentation. Upon Secured Party's written
request and at Debtor's sole expense, Debtor will promptly and duly execute and
deliver such further instruments and documents and take such further action as
Secured Party may reasonably request for the purpose of obtaining, giving notice
of, protecting, preserving and perfecting the security interests granted under
this Agreement, including, without limitation, the filing of any financing or
continuation statements under the Code in effect in any jurisdiction with
respect to the security interests created hereby and the recording of the
security interests granted hereunder in any Intellectual Property with the
appropriate governmental or other authorities in any jurisdiction. Debtor agrees
that a carbon, photographic or other reproduction of this Agreement (or, if
appropriate, any other Security Document) will be sufficient as a financing
statement for filing in any jurisdiction, if permitted by such jurisdiction.

                  (b) Maintenance of Records. Debtor will keep and maintain
complete records of the Collateral as it does in the ordinary course of
business. For Secured Party's further security, Secured Party will have a
security interest in all of the books and records of Debtor pertaining to the
Collateral.

                  (c) No Liens on Collateral. Debtor will not create, incur or
permit to exist, will defend the Collateral against, and will take such other
action as is necessary to remove, any lien, claim, security interest or
encumbrance on or to any of the Collateral, other than the liens granted to
Secured Party under this Agreement and the Prior Liens and Permitted Liens.

                  (d) Limitation on Dispositions of Collateral. Debtor will use
all commercially reasonable efforts to preserve the Collateral without material
impairment while conducting its business in the ordinary course in a manner that
is consistent with Debtor's past business practices. Debtor will not, through
any license, encumbrance, assignment, transfer or disposition of any of the
Collateral, any creation of obligations of Debtor, any issuance of securities,
or any other action, (i) avoid or seek to avoid the observation or performance
of any of the terms to be observed or performed by Debtor under this Agreement,
(ii) materially impair the benefit of this Agreement or the Collateral to
Secured Party, or (iii) materially and adversely affect Secured Party's ability
to operate, or obtain the financial or economic benefit of, the Collateral in
accordance with the terms of this Agreement; provided, however, that Debtor may
(A) enter into Licenses with third parties in the ordinary course of its
business and consistent with its past licensing practice of Intellectual
Property owned or licensed by Debtor, (B) sell or otherwise dispose of worn-out
or obsolete Equipment or Fixtures, and (C) fulfill its obligations under the
Reorganization Agreement. Debtor will at all times in good faith take, and
assist in taking, all such action as may be necessary or appropriate to protect
Secured Party's rights under this Agreement from impairment and to preserve for
Secured Party's benefit the value of the Collateral. Notwithstanding the
foregoing, Debtor may dispose of Caldera or Caldera International Inc. common
stock as provided in Section 4.14 of the Loan Agreement.

                  (e) No Change in Location, Name, etc. Except upon thirty (30)
days prior written notice to Secured Party, Debtor will not move the Collateral
(other than the Intellectual Property) from the location specified in Section
3(c) above or change Debtor's name, identity or structure to such an extent that
any financing statement or other Security Documents filed by Secured Party would
become misleading.

                                       4
<PAGE>   5

                  (f) Payment of Taxes and Assessments. Debtor will pay prior to
delinquency all taxes and assessments assessed against, levied upon or placed
against the Collateral, other than taxes and assessments being contested in good
faith and by appropriate proceedings, and for which adequate reserves are
maintained on the books of the Debtor in accordance with GAAP.

                  (g) Insurance. Debtor shall maintain insurance with respect to
the Collateral in accordance with the insurance standards and practices adhered
to generally by owners of like collateral.

         5. SECRECY AND ASSIGNMENT OF INTELLECTUAL PROPERTY. Debtor will use
commercially reasonable efforts to ensure that each current and future employee
and contractor hired or engaged by Debtor who receives trade secrets or other
confidential and proprietary information of Debtor and/or who in the course of
his/her employment or engagement with Debtor is involved in any way whatsoever
with the Intellectual Property executes and delivers to Debtor a Debtor's
employee or contractor invention assignment and confidentiality agreement, in
Debtor's customary form, imposing invention and intellectual property rights
assignment obligations and confidentiality obligations on the part of such
employee or contractor to Debtor. Debtor will further take reasonable steps and
procedures to preserve and protect the secrecy of Debtor's trade secrets and
other confidential or proprietary information.

         6. APPOINTMENT OF SECURED PARTY AS ATTORNEY-IN-FACT.

                  (a) Powers. Debtor hereby irrevocably constitutes and appoints
Secured Party, and any agent of Secured Party, with full power of substitution,
as its true and lawful attorney-in-fact with full irrevocable power and
authority in the place and stead of Debtor and in the name of Debtor or in the
name of Secured Party, from time to time in Secured Party's discretion, for the
purpose of carrying out the terms of this Agreement, to take any and all
appropriate actions and to execute any and all documents which may be necessary
or desirable to accomplish the purposes of this Agreement, including (without
limiting the generality of the foregoing) to execute, in connection with any
sale or other disposition of Collateral pursuant to Section 7 hereof, any
endorsements, assignments, bills of sale, licenses or other instruments of
conveyance or transfer with respect to the Collateral. This power of attorney is
a power coupled with an interest and is irrevocable.

                  (b) No Duty on Secured Party's Part. The powers conferred on
Secured Party hereunder are solely to protect Secured Party's interests in the
Collateral and will not impose any duty upon it to exercise any such powers.
Secured Party and its agents will not be responsible to Debtor for any act or
failure to act hereunder, except for Secured Party's own gross negligence or
willful misconduct. It is further agreed and understood between the parties
hereto that such care as Secured Party gives to the safekeeping of its own
property of like kind shall constitute reasonable care of the Collateral when in
Secured Party's possession.

                                       5
<PAGE>   6

         7. SECURED PARTY'S RIGHTS AND REMEDIES; RELEASE.

                  (a) General Remedies. If an Event of Default occurs, then in
addition to exercising any other right or remedies Secured Party may have under
the Note, at law or in equity, or pursuant to the provisions of the Code,
Secured Party may, at its sole option and without demand first made, exercise
any one, some or all of the following rights and remedies:

                      (i) Collect the Collateral and its Proceeds;

                      (ii) Take possession of the Collateral and its Proceeds
wherever such may be found or require Debtor to assemble the Collateral and make
it available to Secured Party at a place designated by Secured Party which is
reasonably convenient to Debtor and Secured Party;

                      (iii) Proceed with the foreclosure of the security
interest in the Collateral or any part thereof granted herein and the sale or
endorsement and collection of the Proceeds of such Collateral in any manner
permitted by law or provided for herein;

                      (iv) Sell, lease, license or otherwise dispose of the
Collateral or any part thereof at public or private sale, with or without having
the Collateral at the place of sale, after giving Debtor ten (10) days prior
written notice of such sale, lease, license or other disposition of Collateral;

                      (v) Institute a suit or other action against Debtor for
recovery on the Note;

                      (vi) Exercise any rights and remedies of a secured party
under the Code; and/or

                      (vii) With respect to any Software, Inventions,
Documentation, Intellectual Property and Licenses, in the exercise of the rights
of a secured party under applicable law with respect thereto, and subject to the
rights of any licensor of any such property not owned by Debtor, use, exercise,
practice, reproduce, perform, display, distribute, create derivative works,
make, have made, sell, license, sublicense, transfer, assign and commercialize.

                  (b) No Election of Remedies. The election by Secured Party of
any right or remedy will not prevent Secured Party from exercising any other
right or remedy against Debtor.

                  (c) Proceeds. If an Event of Default occurs, all proceeds and
payments with respect to the Collateral will be retained by Secured Party (or,
if received by Debtor, will be held in trust and will be delivered by Debtor to
Secured Party in the original form received, endorsed in blank) and held by
Secured Party as part of the Collateral or applied by Secured Party to the
payment of the Obligations.

                  (d) Sale of Collateral. Any item of Collateral may be sold,
leased or licensed or otherwise disposed of for cash or other value at public or
private sale or other disposition and the Proceeds thereof collected by or for
Secured Party. Debtor agrees to promptly execute and deliver, or promptly cause
to be executed and delivered, such instruments, documents,

                                       6
<PAGE>   7

assignments, waivers, certificates and affidavits and supply or cause to be
supplied such further information and take such further action as Secured Party
may require in connection with any such sale or disposition. Secured Party shall
have the right upon any such public sale or sales, and, to the extent permitted
by law, upon any such private sale or sales, to purchase the whole or any part
of the Collateral so sold, free of any right or equity of redemption in Debtor,
which right or equity is hereby waived or released. If any notice of a proposed
sale, lease, license or other disposition of Collateral shall be required by
law, such notice shall be deemed reasonable and proper if given at least ten
(10) days before such sale, lease, license or other disposition. Secured Party
agrees to give Debtor ten (10) days prior written notice of any sale, lease,
license or other disposition of Collateral (or any part thereof) by Secured
Party.

                  (e) Application of Proceeds. The Proceeds of all sales and
collections in respect of the Collateral, the application of which is not
otherwise specifically herein provided for, will be applied as follows:

                      (i) First, to the payment of the costs and expenses of
such sale or sales and collections and the attorneys' fees and out-of-pocket
expenses incurred by Secured Party relating to costs of collection;

                      (ii) Second, any surplus then remaining will be applied
first, to the payment of all unpaid interest accrued under the Note, next to the
payment of unpaid principal under the Note, and next to the satisfaction of any
remaining Obligations; and

                      (iii) Third, any surplus then remaining will be paid to
Debtor.

                  (f) Liability for Deficiency. Debtor will remain liable for
any deficiency if the Proceeds of any sale or other disposition of the
Collateral are insufficient to pay the Obligations and the fees and
disbursements of any attorneys or agents employed by Secured Party to collect
such deficiency.

                  (g) Limitation on Duties Regarding Collateral. Secured Party's
sole duty with respect to the custody, safekeeping and physical preservation of
the Collateral in its possession, under the Code or otherwise, shall be to deal
with it in the same manner as Secured Party deals with similar property for its
own account. Secured Party and its agents will not be liable for failure to
demand, collect or realize upon all or any part of the Collateral or for any
delay in doing so nor will any of them be under any obligation to sell or
otherwise dispose of any Collateral upon the request of Debtor or otherwise.

                  (h) Release. Upon the full and complete payment and
performance when due of the Obligations, upon Debtor's written request and at
Debtor's sole expense, Secured Party will promptly and duly execute and deliver
such further instruments and documents and take such further action as Debtor
may reasonably request for the purpose of releasing or terminating the security
interests granted under this Agreement.

                                       7
<PAGE>   8

         8. GOVERNING LAW; VENUE.

                      (i) This Agreement shall be governed by and construed
under the internal laws of the United States and the State of Utah as applied to
agreements among Utah residents entered into and to be performed entirely within
Utah, without reference to principles of conflict of laws or choice of laws
(except to the extent governed by the UCC).

                      (ii) The parties agree that any dispute regarding the
interpretation or validity of, or otherwise arising out of this Agreement, shall
be subject to the exclusive jurisdiction of the Utah State Courts in and for
Salt Lake County, Utah or, in the event of federal jurisdiction, the United
States District Court for the Central Division of Utah sitting in Salt Lake
County, Utah, and each party hereby agrees to submit to the personal and
exclusive jurisdiction and venue of such courts and not to seek the transfer of
any case or proceeding out of such courts.

         9. NO WAIVER. Secured Party will not by any act (except by a written
instrument pursuant to Section 11 hereof), delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Event of Default or in any breach of any of the terms and
conditions hereof. No failure to exercise, nor any delay in exercising, on the
part of Secured Party, any right, power or privilege hereunder will operate as a
waiver thereof. No single or partial exercise of any right, power or privilege
hereunder will preclude any other or further exercise thereof or the exercise of
any other right, power or privilege. A waiver by Secured Party of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy which Secured Party would otherwise have on any future occasion.
The rights and remedies of Secured Party herein provided are cumulative, may be
exercised singly or concurrently and are not exclusive of any other rights or
remedies provided by law.

         10. SUCCESSORS AND ASSIGNS. The terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the successors and permitted
assigns of the parties; provided, however, that Debtor may not assign or
delegate any of its rights or obligations hereunder without Secured Party's
prior written consent, and any assignment or delegation without such consent
shall be void. Nothing herein shall be interpreted to prevent, limit or
otherwise restrain Debtor's grant of licenses to customers and other third
parties in the ordinary course of its business.

         11. AMENDMENTS AND WAIVERS. Any term of this Agreement may be amended
and the observance of any term of this Agreement may be waived (either generally
or in a particular instance and either retroactively or prospectively), only
with the written consent of both Debtor and Secured Party.

         12. RIGHTS AND REMEDIES CUMULATIVE. The rights and remedies herein
provided will be cumulative and not exclusive of any other rights or remedies
provided by law or otherwise.

         13. SEVERABILITY. If any provision of this Agreement, or the
application thereof, will for any reason and to any extent be invalid or
unenforceable, the remainder of this Agreement and application of such provision
to other persons or circumstances will be interpreted so as

                                       8
<PAGE>   9

reasonably to effect the intent of the parties hereto. The parties further agree
to replace such void or unenforceable provision of this Agreement with a valid
and enforceable provision that will achieve, to the extent possible, the
economic, business and other purposes of the void or unenforceable provision.

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

             (i)  If to Secured Party:

                      The Canopy Group, Inc.
                      333 South 520 West, Suite 300
                      Lindon, Utah 84042
                      Attention:  President and CEO

                      With a copy (which shall not constitute notice) to:

                      Parsons Behle & Latimer
                      201 S. Main Street, Suite 1800
                      Salt Lake City, Utah 84111
                      Attention:  Brent Christensen

             (ii)  If to Debtor:

                      The Santa Cruz Operation, Inc.
                      425 Encinal
                      Santa Cruz, California 95061
                      Attention:  Chief Executive Officer and Law and Corporate
                                  Affairs

                      With a copy (which shall not constitute notice) to:

                      Wilson, Sonsini, Goodrich & Rosati
                      650 Page Mill Road
                      Palo Alto, California 94304
                      Attention:  Michael Danaher

or to such other address as a party may have furnished to the other parties in
writing pursuant to this Section 14, except that notices of change of address
shall only be effective upon receipt.

         15. ATTORNEYS' FEES. If any action at law or in equity is necessary to
enforce or interpret the terms of this Agreement, the prevailing party shall be
entitled to recover, as an

                                       9
<PAGE>   10

element of the costs of suit and not as damages, reasonable attorneys' fees,
costs and necessary disbursements in addition to any other relief to which such
party may be entitled. The prevailing party will be entitled to recover its
costs of suit, regardless of whether such suit proceeds to final judgment.

         16. ENTIRE AGREEMENT. This Agreement and the Loan Documents and all
exhibits and schedules hereto and thereto, when taken together, constitute the
entire understanding and agreement of the parties hereto with respect to the
subject matter hereof and supersede all prior and contemporaneous agreements or
understandings, inducements or conditions, express or implied, written or oral,
between the parties with respect hereto.

         17. CONSTRUCTION OF AGREEMENT. This Agreement has been negotiated by
the respective parties hereto and their attorneys and the language hereof will
not be construed for or against either party. Unless otherwise explicitly set
forth, a reference to a Section or an Exhibit will mean a Section in, or Exhibit
to, this Agreement, all of which Exhibits are incorporated herein by this
reference. The titles and headings herein are for reference purposes only and
will not in any manner limit the construction of this Agreement, which will be
considered as a whole.

         18. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. This Agreement will
become binding when one or more counterparts hereof, individually or taken
together, will bear the signatures of all parties reflected hereon as
signatories.

         19. SUBORDINATION. Notwithstanding anything herein to the contrary, all
rights of Secured Party in and to the Collateral shall be subject to the prior
rights of Caldera as set forth in the Intercreditor Agreement.

                           [SIGNATURE PAGE TO FOLLOW]

                                       10
<PAGE>   11

       IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered as of the date first above written.

DEBTOR:                                       SECURED PARTY:

THE SANTA CRUZ OPERATION, INC.                THE CANOPY GROUP, INC.

By:                                           By:
   ------------------------------                -------------------------------

Name:                                         Name:
     ----------------------------                  -----------------------------

Title:                                        Title:
      ---------------------------                   ----------------------------

                  [SIGNATURE PAGE TO SECURITY AGREEMENT BETWEEN
           THE SANTA CRUZ OPERATION, INC. AND THE CANOPY GROUP, INC.]

ATTACHMENTS:

Exhibit A - Definitions

Exhibit B - Liens

                                       11
<PAGE>   12

                                    EXHIBIT A

                                   DEFINITIONS

         As used in the Security Agreement to which this Exhibit A is attached,
the following terms will have the following meanings:

         (a) "CAPITALIZED LEASE OBLIGATIONS" shall mean any and all lease
obligations that, in accordance with GAAP, are required to be capitalized on the
books of a lessee.

         (b) "CODE" means the Uniform Commercial Code (or successor law) as from
time to time in effect in the State of Utah.

         (c) "COLLATERAL" will have the meaning assigned to such term in Section
2 of the Security Agreement.

         (d) "COPYRIGHTS" means all past, present and future copyrights,
copyright applications and copyright registrations in the United States and in
any and all other countries and jurisdictions, including, without limitation,
all of the exclusive rights afforded a copyright owner in the United States
under 17 U.S.C. Section 106 and any rights relating to copyrights which may in
the future arise by act of Congress or any foreign governmental entity, and any
rights given to a copyright owner or registrant in or under any copyright
conventions, treaties or foreign laws, and further including, without
limitation, all renewals extensions, and modifications thereof, all income,
royalties, damages and payments now or hereafter due and/or payable under or
with respect thereto, the right to sue for, and to recover damages and receive
remedies for, all past, present and future infringements thereof, and all other
rights of any kind whatsoever accruing thereunder or pertaining thereto anywhere
in the world.

         (e) "DOCUMENTATION" means, collectively: (i) all documentation,
manuals, drawings, designs, plans, blueprints, specifications, schematics,
layouts, flow charts, logic diagrams, engineering and test reports, components
lists, customer lists, suppliers lists, user, installation or repair manuals,
programmers' notes, programming documentation, any recorded information
regarding any Invention, and any other works of authorship; (ii) all
documentation regarding the design, development, testing or manufacture of any
products or any equipment used to design, develop, test, or manufacture any such
products or components of such products; (iii) all field repair data, sales data
and other information relating to sales or service of any products; and (iv) all
media in which or on which any of the are recorded or stored or from which they
can be read or retrieved.

                                      A-1
<PAGE>   13

         (f) "EVENT OF DEFAULT" Ten (10) days after written notice from Secured
Party to Debtor for monetary defaults and thirty (30) days after written notice
from Secured Party to Debtor for non-monetary defaults, if such defaults are not
cured within such ten (10) day or thirty day (30) periods, respectively, each of
the following shall constitute an event of default ("EVENT OF DEFAULT") under
this Agreement:

             (i) Default in Payment. If Debtor fails to make any payment due and
payable under the terms of the Note, this Agreement or the Loan Agreement.

             (ii) Representations and Warranties. If any of the representations
and warranties made by Debtor shall be false or misleading in any material
respect when made.

             (iii) Covenants. If Debtor shall be in material default under any
of the material terms, covenants, conditions, or obligations under any Loan
Document.

             (iv) Dissolution. If Debtor is dissolved.

             (v) Receiver. If a receiver, trustee, or custodian is appointed for
any part of the Collateral, or any part of the Collateral is assigned for the
benefit of creditors.

             (vi) Impairment to Lien. If at any time any lien created under the
Note, this Agreement or the Loan Agreement on any of the Collateral may be
impaired by any material lien, encumbrance or other defect other than the Prior
Liens or the Permitted Liens.

             (vii) Bankruptcy. If a petition in bankruptcy is filed against
Debtor, and such petition is not dismissed within ninety (90) days of filing, a
petition in bankruptcy is filed by Debtor or a receiver, trustee or custodian of
any part of the Collateral is appointed; or if Debtor files a petition for
reorganization under any of the provisions of the Bankruptcy Act or any law,
State or Federal, or makes an assignment for the benefit of creditors or is
adjudged insolvent by any State or Federal Court of competent jurisdiction.

             (viii) Judgment or Attachment. If any writ, attachment, citation,
judgment, lien or distress warrant being issued against or levied on the
Collateral for an amount in excess of $100,000.00 and such judgment or
attachment is not vacated, discharged, stayed or bonded pending appeal, paid or
otherwise fully satisfied within thirty (30) days of the date it is entered.

             (ix) Diminished Value. If the Collateral is subject to any
uninsured loss, theft, damage or destruction to the Collateral which materially
and substantially diminishes the value of the Collateral.

         (g) "GENERAL INTANGIBLES" has the meaning as set forth in Section 2(a)
of this Agreement.

         (h) "GOVERNMENTAL AUTHORITY" shall mean any domestic or foreign
national, state or local government, any political subdivision thereof, any
department, agency, authority or bureau

                                      A-2
<PAGE>   14

of any of the foregoing, or any other entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government.

         (i) "GOVERNMENTAL CHARGES" shall mean all taxes, levies, assessments,
fees, claims or other charges imposed by any Governmental Authority upon or
relating to (i) Debtor, (ii) the Note, (iii) employees, payroll, income or gross
receipts of Debtor, (iv) the ownership or use of any of its assets by Debtor, or
(v) any other aspect of the business of Debtor.

         (j) "INTELLECTUAL PROPERTY" means, any, some or all of the following:
(i) Copyrights, Patents, Mask Works, Trademarks, know-how, trade secrets,
proprietary information, Moral Rights and any and all other forms of
intellectual property; (ii) all Licenses and similar rights granted to or held
by Debtor with respect to any Copyrights, Patents, Mask Works, Trademarks,
Inventions, Software, Documentation, know-how, trade secrets, proprietary
information, Moral Rights or other form of intellectual property, (iii) all
licenses, consents, permits, variances, certifications and approvals of
governmental agencies; and (iv) all causes of action, claims and warranties in
respect of any of the items listed above.

         (k) "INVENTIONS" means all past, present and future inventions,
improvements, enhancements, processes, production or manufacturing methods,
compositions of matter, formulas, Software, works of authorship, data, and other
proprietary information, whether or not protected or protectable by copyright,
patent, mask work, trade secret or other laws regarding intellectual property.

         (l) "LICENSES" means all past, present and future licenses,
sublicenses, covenants-not-to-sue, consents and authorizations relating to any
Intellectual Property, Documentation, Software or Inventions.

         (m) "LOAN DOCUMENTS" means the Loan Agreement, the Note, the
Intercreditor Agreement, and this Agreement together with all schedules and
exhibits attached thereto.

         (n) "MASK WORK" means mask work as defined in the Semiconductor Chip
Protection Act of 1984 and all registrations of claims of protection for such
mask work under the laws of the United States of America or any other
jurisdiction.

         (o) "MORAL RIGHTS" means any right to claim authorship to or to object
to any distortion, mutilation, or other modification or other derogatory action
in relation to a work, whether or not such would be prejudicial to the author's
reputation, and any similar right, existing under common or statutory law of any
country in the world or under any treaty, regardless of whether or not such
right is denominated or generally referred to as a "moral right." "Moral Rights"
include, without limitation, anything designated as a moral right under any law,
statute, treaty or convention.

         (p) "OBLIGATIONS" means all obligations, liabilities and indebtedness
of Debtor to Secured Party and/or its assigns, whether direct or indirect,
absolute or contingent, due or to become due, now existing or hereafter
incurred, which may arise under or out of the Note and the

                                      A-3
<PAGE>   15

Loan Documents, whether for obligations with respect to principal, interest,
costs, expenses (including, without limitation, all reasonable fees and
disbursements of counsel to Secured Party) or otherwise.

         (q) "PATENTS" means all past, present and future patents and patent
applications in the United States and in all other countries and jurisdictions,
including, without limitation, the inventions and improvements described or
claimed therein, together with the reissues, divisions, continuations, renewals,
extensions and continuations-in-part thereof, and all rights given to a patent
owner in or under any patent conventions, treaties and foreign laws, and further
including, without limitation, all income, royalties, damages and payments now
or hereafter due and/or payable under or with respect thereto, the right to sue
for, and to recover damages and receive remedies for, all past, present and
future infringements thereof, and all rights of any kind accruing thereunder or
pertaining thereto anywhere in the world.

         (r) "PERMITTED LIENS" shall mean and include:

             (i) Liens securing obligations of less than $50,000 each, and that
are:

                 (A) Liens for taxes or other Governmental Charges not at the
time delinquent or thereafter payable without penalty or being contested in good
faith, provided provision is made to the reasonable satisfaction of Secured
Party for the eventual payment thereof if subsequently found payable, (adequate
reserves maintained on the books of the Debtor in accordance with GAAP shall be
deemed reasonably satisfactory to Secured Party);

                 (B) Liens of carriers, warehousemen, mechanics, materialmen,
vendors, and landlords incurred in the ordinary course of business for sums not
overdue or being contested in good faith, provided provision is made to the
reasonable satisfaction of Secured Party for the eventual payment thereof if
subsequently found payable;

                 (C) Deposits under workers' compensation, unemployment
insurance and social security laws or to secure the performance of bids,
tenders, contracts (other than for the repayment of borrowed money) or leases,
or to secure statutory obligations of surety or appeal bonds or to secure
indemnity, performance or other similar bonds in the ordinary course of
business;

                 (D) Liens securing obligations under a Capitalized Lease
Obligation or operating lease and if such Liens do not extend to property other
than the property leased under such Capitalized Lease Obligation or operating
lease; and

                 (E) Liens upon any equipment acquired or held by Debtor to
secure the purchase price of such equipment or indebtedness incurred solely for
the purpose of financing the acquisition of such equipment;

                 (F) Easements, reservations, rights of way, restrictions, minor
defects or irregularities in title and other similar charges or encumbrances
affecting real property in a manner not materially or adversely affecting the
value or use of such property;

                                      A-4
<PAGE>   16

                 (G) Liens on insurance proceeds in favor of insurance companies
to secure the financing of insurance premium, or;

                 (H) Liens which constitute rights of setoff of a customary
nature or bankers' Liens with respect to amounts on deposit, whether arising by
operation of law or by contract, in connection with arrangements entered into
with banks in the ordinary course of business not relating to a financing
transaction;

            (ii) Liens arising out of a judgment or award in circumstances not
constituting an Event of Default;

            (iii) Leases, subleases, licenses and sublicenses entered into by
Debtor in the ordinary course of business;

            (iv) Liens in favor of Secured Party, or;

            (v) Liens that have been approved in writing by Secured Party.

            (vi) Liens incurred in connection with the extension, renewal or
refinancing of the indebtedness secured by liens of the type described in
clauses (i) through (v) above, provided that any extension, renewal or
replacement lien shall be limited to the property encumbered by the existing
lien and the principal amount of the indebtedness being extended, renewed or
refinanced does not increase.

         (s) "PRIOR LIENS" means (i) the liens in favor of Caldera referred to
in the Intercreditor Agreement to the extent that under such agreement such
liens have priority over the Liens of Secured Party hereunder and (ii) liens
that are not Permitted Liens and are listed in Exhibit B and attached hereto.

         (t) "PROCEEDS" means whatever is received upon the sale, exchange,
collection, licensing or other disposition of Collateral or proceeds of
Collateral, including, without limitation, insurance proceeds.

         (u) "SOFTWARE" means all past, present and future computer programs, in
any and all forms including source code, object code, executable code, binary
code and machine readable code, and including applications, system software,
communications software, development tools, software utilities, development
environments, interfaces, and other computer code, and further including the
graphics, sounds, data and other content in or generated by the foregoing
computer programs. The Software includes, but is not limited to, the Software
identified in Exhibit B.

         (v) "TRADEMARKS" means all past, present and future trade names,
trademarks, trademark applications, trademark registrations, service marks,
service mark applications, and service mark registrations in the United States
and any and all other countries and jurisdictions, including, without
limitation, all renewals of trademark and service mark registrations, and all
rights given to a trademark or service mark owner or registrant in or under any
trademark or service mark conventions, treaties and foreign laws, and further
including, without limitation, all

                                      A-5
<PAGE>   17

income, royalties, damages and payments now or hereafter due and/or payable
under or with respect thereto, the right to sue for, and to recover damages and
receive remedies for, all past, present and future infringements thereof, and
all rights of any kind accruing thereunder or pertaining thereto anywhere in the
world.

                                      A-6<PAGE>   1
                                                                   EXHIBIT 10.48

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

                                   ----------

                       SECURED CONVERTIBLE PROMISSORY NOTE

                                       OF

                         THE SANTA CRUZ OPERATION, INC.

$18,000,000                                                   January 8, 2000

The Santa Cruz Operation, Inc., a California corporation (the "COMPANY"), for
value received, hereby promises to pay to The Canopy Group, Inc., a Utah
corporation ("NOTEHOLDER"), at 333 South 520 West, Suite 300, Lindon, Utah
84042, or its assigns, the sum of Eighteen Million Dollars ($18,000,000.00), or
if less, the then unpaid principal amount of all loans made by Noteholder to the
Company under the Loan Agreement, dated the date hereof, made by and between the
Company and the Noteholder, plus interest accrued on unpaid principal, at a rate
per annum of ten percent (10%), from the date of this Note until the principal
amount hereof and all interest accrued thereon is paid (or converted, as
provided in Section 2 hereof). Accrued interest due on this Note shall be
payable monthly on the first day of each month, beginning January 1, 2001, at
the address of Noteholder or of the holder of this Note set forth in Section 17
hereof or as to which the Company has been notified in compliance with such
Section. Unless this Note shall have been previously converted pursuant to
Section 2 hereof or as provided otherwise in this Note, the principal amount of
this Note, and the interest accrued thereon, shall be payable on the earliest to
occur of (i) December 31, 2001, (ii) a default under this Note in accordance
with Paragraph 8 below, or (iii) a default as that term is defined in the
Security Agreement executed herewith.

         This Note may be prepaid in full or in part at any time without penalty
upon twenty (20) days written notice to Noteholder.

         If any payment is not made when due hereunder, time being of the
essence, a late fee equal to five percent (5%) of such late payment shall be
immediately due hereunder (in addition to all other amounts due hereunder), and
all past due principal and accrued interest on this Note shall bear

<PAGE>   2

interest until all payments hereunder are brought current at the lesser of (i)
the rate of 18% per annum or (ii) the highest rate for which Borrower may
legally contract under applicable law.

         All payments hereunder shall be payable in lawful money of the United
States of America which shall be legal tender for public and private debts at
the time of payments. Any and all payments by Borrower under this Note shall be
applied as follows: first, to the repayment of any expenses incurred by
Noteholder in enforcing its rights hereunder; second, to the payment of any late
charges; third, to the payment of accrued interest; and fourth, to the payment
of principal.

         The following additional terms and conditions shall apply hereto:

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

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

                  1.2 "CHANGE OF CONTROL TRANSACTION" shall mean a merger,
acquisition, or other business combination in which (a) fifty percent (50%) or
more of the Company's outstanding voting stock is acquired by different holders
in a single transaction or a series of related transactions, or (b) the
Company's shareholders immediately prior to the transaction hold less than 50%
of the shares in the surviving entity after the transaction.

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

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

                  1.5 "NOTE CONVERSION PRICE" shall be the closing price of the
Company's Common Stock on the date of this Note as reported by the National
Association of Securities Dealers Automated Quotation System ("NASDAQ").

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

         2. CONVERSION.

                  2.1 Conversion of Note. At any time prior to payment in full
of the entire outstanding principal balance of this Note, plus accrued interest
hereunder, and upon thirty (30) days

                                       2
<PAGE>   3

written notice, Noteholder shall have the right, at the holder's option, to
convert the principal and accrued interest on this Note, in whole or in part,
into Conversion Stock at the Note Conversion Price. Conversion in whole under
this Section 2 shall occur only upon surrender of this Note for conversion at
the principal offices of the Company, accompanied by written notice of election
to convert. Conversion in part shall result in a credit to the outstanding
principal owed under this Note as evidenced by a written notice of election to
convert, which shall recite the dollar amount of conversion and shall act as a
credit against the unpaid obligation of the Note. Conversion will not occur for
amounts that Borrower, (i) within ten (10) days of the date of Noteholders'
notice under this Section, gives written notice of its intent to prepay, and
(ii) makes such payment within the 30 day notice period under this Section 2.1.
Notwithstanding the foregoing, Noteholder shall have the option to immediately
convert any amount that is outstanding at the end of the 30 notice period under
this Section 2.1.

                  2.2 Conversion Limit. In no event shall Canopy convert, in
aggregate, amounts owed under this Note into a number of shares that, when
combined with (i) shares converted by Caldera Systems, Inc. ("Caldera") pursuant
to that certain Secured Convertible Promissory Noted by and between Caldera and
Borrower dated on even date herewith, and (ii) shares purchased pursuant to the
warrant granted by Borrower to Canopy dated on even date herewith, or Additional
Warrants, exceeds 19% of the total outstanding shares of Borrower's Common
Stock as of the date of this Note.

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

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

         4. ADJUSTMENT OF NUMBER OF SHARES. The number and character of shares
of Conversion Stock issuable upon conversion of this Note (or any shares of
stock or other securities or

                                       3
<PAGE>   4

property at the time receivable or issuable upon conversion of this Note) are
subject to adjustment upon the occurrence of any of the following events:

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

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

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

                                       4
<PAGE>   5
conversion of this Note after the consummation of such reorganization,
consolidation, merger or conveyance. Notwithstanding the foregoing, no
adjustments shall be made under this Section 4.3 as a result of the transactions
contemplated by the Reorganization Agreement (as defined in the Loan Agreement
referred to in Section 10 hereof.)

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

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

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

                  4.7 Reservation of Stock. The Company has taken all necessary
corporate action and obtained all necessary government consents and approvals to
authorize the issuance of this Note and the maximum number of shares of
Conversion Stock issuable upon conversion of this Note. If at any time the
number of authorized but unissued shares of Common Stock or other securities
shall not be sufficient to effect the conversion of this Note, then the Company
will take such corporate action as may, in the opinion of its legal counsel, be
necessary to increase its authorized but unissued Stock or other securities to
such number of shares of Common Shares or other securities as shall be
sufficient for such purpose.

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

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

                                       5
<PAGE>   6

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

         8. DEFAULT. Ten (10) days after written notice from Lender to Borrower
for monetary defaults and thirty (30) days after written notice from Lender to
Borrower for non-monetary defaults, if such defaults are not cured within such
ten (10) day or thirty day (30) periods, respectively, each of the following
shall constitute an event of default ("DEFAULT") under this Agreement:

                  a. Default in Payment. If Borrower fails to make any payment
         due and payable under the terms of the Note, this Agreement (and under
         the terms of the Intercreditor Agreement) or any other Loan Document.

                  b. Representations and Warranties. If any of the
         representations and warranties made by Borrower shall be false or
         misleading in any material respect when made.

                  c. Covenants. If Borrower shall be in material default under
         any of the material terms, covenants, conditions, or obligations under
         any Loan Document.

                  d. Dissolution. If Borrower is dissolved.

                  e. Receiver. If a receiver, trustee, or custodian is appointed
         for any part of the Collateral, or any part of the Collateral is
         assigned for the benefit of creditors.

                  f. Impairment to Lien. If at any time any Loan Document
         creating a lien on any of the Collateral may be impaired by any
         material lien, encumbrance or other defect other than the Prior Liens
         or the Permitted Liens.

                  g. Bankruptcy. If a petition in bankruptcy is filed against
         Borrower, and such petition is not dismissed within ninety (90) days of
         filing, a petition in bankruptcy is filed by Borrower or a receiver,
         trustee or custodian of any part of the Collateral is appointed; or if
         Borrower files a petition for reorganization under any of the
         provisions of the Bankruptcy Act or any law, State or Federal, or makes
         an assignment for the benefit of creditors or is adjudged insolvent by
         any State or Federal Court of competent jurisdiction.

                                       6
<PAGE>   7

                  h. Judgment or Attachment. If a judgment is entered against
         Borrower or any attachment be made for an amount in excess of
         $100,000.00 and such judgment or attachment is not vacated, discharged,
         stayed or bonded pending appeal, paid or otherwise fully satisfied
         within thirty (30) days of the date it is entered.

         9. SECURITY AGREEMENT. This Note is secured by a security interest in
certain collateral, which security interest was granted by the Company to the
original holder of this Note pursuant to the terms of a certain security
agreement (the "SECURITY AGREEMENT") dated on or about the date of this Note, by
and between the original holder of the Note and the Company, and is incorporated
herein by this reference. An Intercreditor Agreement (the "INTERCREDITOR
AGREEMENT") by and among Debtor, Secured Party and Caldera Systems, Inc.
("Caldera") establishes the relative priority of the security interests granted
hereunder and the lien held by Caldera.

         10. LINE OF CREDIT. This Note evidences a line of credit. Advances
under this Note may be requested orally by any Company officer or other
authorized person. Noteholder may, but need not, require that all oral requests
be confirmed in writing. Upon the Company's request for an advance, Noteholder
shall, within 10 days of the request, deliver such requested amount. The Company
agrees to be liable for all sums advanced in accordance with the instructions of
its officers or authorized persons. The unpaid principal balance owing on this
Note at any time may be evidenced by endorsements on this Note, or by a Schedule
attached to this Note. Notwithstanding anything to the contrary contained in
this Note, in no event shall the aggregate amount of all advances made under
this Note exceed $18,000,000, or such other lesser amount that may be loaned
pursuant to adjustments under Section 4.14 of that certain Loan Agreement (the
"LOAN AGREEMENT") by and between the Company and Secured Party dated on or about
the date of this Note, notwithstanding the unpaid principal balance owing on
this Note at any given time. Notwithstanding anything to the contrary contained
in this Note, Noteholder has no obligation to make advances under this Note if
the Company is in default under the Security Agreement, the Loan Agreement, or
this Note.

         11. SET-OFF RIGHT. At any time prior to payment in full of the entire
principal balance of this Note, plus accrued interest hereunder, Noteholder
shall have the right, at the holder's option and without the requirement of
giving any prior notice, to set off outstanding principal and accrued interest
on this Note, in whole or in part, by applying as a set-off towards the payment
thereof any Common Stock of Caldera International, Inc. ("New Caldera") held by
Noteholder as collateral under the Security Agreement. The value to be used for
any such set-off of New Caldera Common Stock shall be 75% of the closing price
as reported by NASDAQ of New Caldera's Common Stock on the date of such set-off.
No later than the business day after the date of such application, Noteholder
(or the then holder of this Note) shall notify the Company of the number of
shares of such of Common Stock of New Caldera applied to such set-off.

         12. REGISTRATION RIGHTS. Upon conversion of this Note into Conversion
Stock of the Company pursuant to the terms of Section 2 above, Noteholder shall
have the rights provided in this Section 12 with respect to Registrable
Securities as defined below.

                  12.1 As used in this Section 12, the following terms shall
have the following meanings:

                                       7
<PAGE>   8

                           (a) "ACT" shall mean the Securities Act of 1933, as
amended.

                           (b) "AFFILIATE" shall mean, with respect to any
Person (as defined below), any other Person controlling, controlled by or under
direct or indirect common control with such Person (for the purposes of this
definition "control," when used with respect to any specified Person, shall mean
the power to direct the management and policies of such person, directly or
indirectly, whether through ownership of voting securities, by contract or
otherwise; and the terms "controlling" and "controlled" shall have meanings
correlative to the foregoing).

                           (c) "BUSINESS DAY" shall mean a day Monday through
Friday on which banks are generally open for business in New York.

                           (d) "HOLDERS" shall mean Noteholder or any person to
whom the rights under this Section 12 have been transferred in accordance with
Section 12.9 hereof.

                           (e) "PERSON" shall mean any person, individual,
corporation, limited liability company, partnership, trust or other
non-governmental entity or any governmental agency, court, authority or other
body (whether foreign, federal, state, local or otherwise).

                           (f) The terms "REGISTER," "REGISTERED" and
"REGISTRATION" refer to the registration effected by preparing and filing a
registration statement in compliance with the Act, and the declaration or
ordering of the effectiveness of such registration statement.

                           (g) "REGISTRABLE SECURITIES" shall mean (i) the
shares of Conversion Stock issuable upon conversion of this Note pursuant to
Section 2 above; and (ii) any shares of Conversion Stock issued as (or issuable
upon the conversion of any warrant, right or other security which is issued as)
a dividend or other distribution with respect to or in replacement of such
Conversion Stock; provided, however, that securities shall only be treated as
Registrable Securities if and only for so long as they (A) have not been
disposed of pursuant to a registration statement declared effective by the
Commission, (B) have not been sold in a transaction exempt from the registration
and prospectus delivery requirements of the Act so that all transfer
restrictions and restrictive legends with respect thereto are removed upon the
consummation of such sale, (C) are held by a Holder or a permitted transferee
pursuant to Section 12.9, or (D) have not been sold or are not available for
sale in transactions pursuant to Rule 144(k) promulgated under the Act.

                           (h) "REGISTRATION EXPENSES" shall mean all reasonable
expenses incurred by the Company in complying with Section 12.2 hereof,
including, without limitation, all reasonable registration, qualification and
filing fees, printing expenses, fees and expenses of counsel for the Company,
blue sky fees and expenses and the reasonable expense of any special audits
incident to or required by any such registration (but excluding the fees of
legal counsel for any Holder).

                           (i) "REGISTRATION STATEMENT" shall have the meaning
ascribed to such term in Section 12.2.

                                       8
<PAGE>   9

                           (j) "REGISTRATION PERIOD" shall have the meaning
ascribed to such term in Section 12.4.

                           (k) "SELLING EXPENSES" shall mean all underwriting
discounts and selling commissions applicable to the sale of Registrable
Securities and all fees and expenses of legal counsel for any Holder.

                  12.2 No later than thirty (30) days after the Conversion Date
(the "FILING DATE"), the Company shall file a "shelf" registration statement on
the appropriate form (the "REGISTRATION STATEMENT") with the Commission and use
its best efforts to effect the registration, qualifications or compliances
(including, without limitation, the execution of any required undertaking to
file post-effective amendments, appropriate qualifications or exemptions under
applicable blue sky or other state securities laws and appropriate compliance
with applicable securities laws, requirements or regulations) of the Registrable
Securities prior to the date which is as soon as reasonably practical
thereafter, but in any event on or before 90 days after the Conversion Date.

                  12.3 All Registration Expenses incurred in connection with any
registration, qualification, exemption or compliance pursuant to Section 12.2
shall be borne by the Company.

                  12.4 In the case of the registration, qualification, exemption
or compliance effected by the Company pursuant to this Agreement, the Company
shall, upon reasonable request, inform each Holder as to the status of such
registration, qualification, exemption and compliance. At its expense the
Company shall:

                           (a) Use its commercially reasonable efforts to keep
such registration, and any qualification, exemption or compliance under state
securities laws which the Company determines to obtain, continuously effective
until the Holders have completed the distribution described in the registration
statement relating thereto. The period of time during which the Company is
required hereunder to keep the Registration Statement effective is referred to
herein as "THE REGISTRATION PERIOD." Notwithstanding the foregoing, at the
Company's election, the Borrower may cease to keep such registration,
qualification, exemption or compliance effective with respect to any Registrable
Securities, and the registration rights of a Holder shall expire, at such time
as they are no longer, by reason of Rule 144 promulgated under the Act (or other
exemption from registration acceptable to the Company) required to register for
the sale thereof; and

                           (b) advise the Holders:

                                    (i) when the Registration Statement or any
amendment thereto has been filed with the Commission and when the Registration
Statement or any post-effective amendment thereto has become effective;

                                       9
<PAGE>   10

                                    (ii) of any request by the Commission for
amendments or supplements to the Registration Statement or the prospectus
included therein or for additional information;

                                    (iii) of the issuance by the Commission of
any stop order suspending the effectiveness of the Registration Statement or the
initiation of any proceedings for such purpose;

                                    (iv) of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Registrable Securities included therein for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose; and

                                    (v) of the happening of any event that
requires the making of any changes in the Registration Statement or the
prospectus so that, as of such date, the statements therein are not misleading
and do not omit to state a material fact required to be stated therein or
necessary to make the statements therein (in the case of the prospectus, in the
light of the circumstances under which they were made) not misleading;

                           (c) make every reasonable effort to obtain the
withdrawal of any order suspending the effectiveness of any Registration
Statement at the earliest possible time;

                           (d) furnish to each Holder upon request, without
charge, at least one copy of such Registration Statement and any post-effective
amendment thereto, including financial statements and schedules, and, if the
Holder so requests in writing, all exhibits (including those incorporated by
reference) in the form filed with the Commission;

                           (e) during the Registration Period, deliver to each
Holder, without charge, as many copies of the prospectus included in such
Registration Statement and any amendment or supplement thereto as such Holder
may reasonably request; and the Company consents to the use, consistent with the
provisions hereof, of the prospectus or any amendment or supplement thereto by
each of the selling Holders of Registrable Securities in connection with the
offering and sale of the Registrable Securities covered by the prospectus or any
amendment or supplement thereto.

                           (f) prior to any public offering of Registrable
Securities pursuant to any Registration Statement, register or qualify or obtain
an exemption for offer and sale under the securities or blue sky laws of such
jurisdictions as any such Holders reasonably request in writing, provided that
the Company shall not for any such purpose be required to qualify generally to
transact business as a foreign corporation in any jurisdiction where it is not
so qualified or to consent to general service of process in any such
jurisdiction, and do any and all other acts or things reasonably necessary or
advisable to enable the offer and sale in such jurisdictions of the Registrable
Securities covered by such Registration Statement;

                                       10
<PAGE>   11

                           (g) cooperate with the Holders to facilitate the
timely preparation and delivery of certificates representing Registrable
Securities to be sold pursuant to any Registration Statement free of any
restrictive legends to the extent not required at such time and in such
denominations and registered in such names as Holders may request at least three
(3) business days prior to sales of Registrable Securities pursuant to such
Registration Statement;

                           (h) upon the occurrence of any event contemplated by
Section 12.4(b)(v) above, the Company shall promptly prepare a post-effective
amendment to the Registration Statement or a supplement to the related
prospectus, or file any other required document so that, as thereafter delivered
to purchasers of the Registrable Securities included therein, the prospectus
will not include any untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

                  12.5 The Holders shall have no right to take any action to
restrain, enjoin or otherwise delay any registration pursuant to Section 12.2
hereof as a result of any controversy that may arise with respect to the
interpretation or implementation of this Agreement.

                  12.6 (a) To the extent permitted by law, the Company shall
indemnify each Holder and each person controlling such Holder within the meaning
of Section 15 of the Act, with respect to which any registration, qualification
or compliance has been effected pursuant to this Agreement, against all claims,
losses, damages and liabilities (or action in respect thereof), including any of
the foregoing incurred in settlement of any litigation, commenced or threatened
(subject to Section 12.6(c) below), arising out of or based on any untrue
statement (or alleged untrue statement) of a material fact contained in any
registration statement, prospectus or offering circular, or any amendment or
supplement thereof, incident to any such registration, qualification or
compliance, or based on any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, in light of the circumstances in which they were made,
and will reimburse each Holder and each person controlling such Holder, for
reasonable legal and other expenses reasonably incurred in connection with
investigating or defending any such claim, loss, damage, liability or action as
incurred; provided that the Company will not be liable in any such case to the
extent that any untrue statement or omission or allegation thereof is made in
reliance upon and in conformity with written information furnished to the
Company by or on behalf of such Holder and stated to be specifically for use in
preparation of such registration statement, prospectus or offering circular;
and, provided further, that the Company will not be liable in any such case
where the claim, loss, damage or liability arises out of or is related to the
failure of the Holder to comply with the covenants and agreements contained in
this Agreement respecting sales of Registrable Securities, and except that the
foregoing indemnity agreement is subject to the condition that, insofar as it
relates to any such untrue statement or alleged untrue statement or omission or
alleged omission made in the preliminary prospectus but eliminated or remedied
in the amended prospectus on file with the Commission at the time the
registration statement becomes effective or in the amended prospectus filed with
the Commission pursuant to Rule 424(b) or in the prospectus subject to
completion and term sheet under Rule 434 of the Act,

                                       11
<PAGE>   12

which together meet the requirements of Section 10(a) of the Act (the "FINAL
PROSPECTUS"), such indemnity agreement shall not inure to the benefit of any
such Holder or any such controlling person, if a copy of the Final Prospectus
furnished by the Company to the Holder for delivery was not furnished to the
person or entity asserting the loss, liability, claim or damage at or prior to
the time such furnishing is required by the Act and the Final Prospectus would
have cured the defect giving rise to such loss, liability, claim or damage.

                           (b) Each Holder will severally, if Registrable
Securities held by such Holder are included in the securities as to which such
registration, qualification or compliance is being effected, indemnify the
Company, each of its directors and officers, each underwriter of the Registrable
Securities and each person who controls the Company within the meaning of
Section 15 of the Act, against all claims, losses, damages and liabilities (or
actions in respect thereof), including any of the foregoing incurred in
settlement of any litigation, commenced or threatened (subject to Section
12.6(c) below), arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any registration statement,
prospectus or offering circular, or any amendment or supplement thereof,
incident to any such registration, qualification or compliance, or based on any
omission (or alleged omission) to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, in
light of the circumstances in which they were made, and will reimburse the
Company, such directors and officers, each underwriter of the Registrable
Securities and each person controlling the Company for reasonable legal and any
other expenses reasonably incurred in connection with investigating or defending
any such claim, loss, damage, liability or action as incurred, in each case to
the extent, but only to the extent, that such untrue statement or omission or
allegation thereof is made in reliance upon and in conformity with written
information furnished to the Company by or on behalf of the Holder and stated to
be specifically for use in preparation of such registration statement,
prospectus or offering circular; provided that the indemnity shall not apply to
the extent that such claim, loss, damage or liability results from the fact that
a current copy of the prospectus was not made available to the Holder and such
current copy of the prospectus would have cured the defect giving rise to such
loss, claim, damage or liability. Notwithstanding the foregoing, in no event
shall a Holder be liable for any such claims, losses, damages or liabilities in
excess of the proceeds received by such Holder in the offering, except in the
event of fraud by such Holder.

                           (c) Each party entitled to indemnification under this
Section 12.6 (the "INDEMNIFIED PARTY") shall give notice to the party required
to provide indemnification (the "INDEMNIFYING PARTY") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any
such claim or any litigation resulting therefrom, provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or litigation,
shall be approved by the Indemnified Party (whose approval shall not
unreasonably be withheld), and the Indemnified Party may participate in such
defense at such Indemnified Party's expense, and provided further that the
failure of any Indemnified Party to give notice as provided herein shall not
relieve the Indemnifying Party of its obligations under this Agreement, unless
such failure is materially prejudicial to the Indemnifying Party in defending
such claim or litigation. An Indemnifying Party shall not be liable

                                       12
<PAGE>   13

for any settlement of an action or claim effected without its written consent
(which consent will not be unreasonably withheld).

                           (d) If the indemnification provided for in this
Section 12.6 is held by a court of competent jurisdiction to be unavailable to
an Indemnified Party with respect to any loss, liability, claim, damage or
expense referred to therein, then the Indemnifying Party, in lieu of
indemnifying such Indemnified Party thereunder, shall contribute to the amount
paid or payable by such Indemnified Party as a result of such loss, liability,
claim, damage or expense in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party on the one hand and of the Indemnified
Party on the other in connection with the statements or omissions which resulted
in such loss, liability, claim, damage or expense as well as any other relevant
equitable considerations. The relative fault of the Indemnifying Party and of
the Indemnified Party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
Indemnifying Party or by the Indemnified Party and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

                  12.7 (a) Each Holder agrees that, upon receipt of any notice
from the Company of the happening of any event requiring the preparation of a
supplement or amendment to a prospectus relating to Registrable Securities so
that, as thereafter delivered to the Holders, such prospectus shall not contain
an untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading, each Holder will forthwith discontinue disposition of Registrable
Securities pursuant to the registration statement contemplated by Section 12.2
until its receipt of copies of the supplemented or amended prospectus from the
Company and, if so directed by the Company, each Holder shall deliver to the
Company all copies, other than permanent file copies then in such Holder's
possession, of the prospectus covering such Registrable Securities current at
the time of receipt of such notice.

                           (b) Each Holder shall suspend, upon request of the
Company, any disposition of Registrable Securities pursuant to the Registration
Statement and prospectus contemplated by Section 12.2 during (i) any period not
to exceed two 60-day periods within any one 12-month period the Company requires
in connection with a primary underwritten offering of equity securities and (ii)
any period, not to exceed one 45-day period per circumstance or development,
when the Company determines in good faith that offers and sales pursuant thereto
should not be made by reason of the presence of material undisclosed
circumstances or developments with respect to which the disclosure that would be
required in such a prospectus is premature, would have an adverse effect on the
Company or is otherwise inadvisable.

                           (c) As a condition to the inclusion of its
Registrable Securities, each Holder shall furnish to the Company such
information regarding such Holder and the distribution proposed by such Holder
as the Company may request in writing or as shall be required in connection with
any registration, qualification or compliance referred to in this Section 12.

                                       13
<PAGE>   14

                           (d) Each Holder hereby covenants with the Company (i)
not to make any sale of the Registrable Securities without effectively causing
the prospectus delivery requirements under the Act to be satisfied, and (ii) if
such Registrable Securities are to be sold by any method or in any transaction
other than on a national securities exchange, Nasdaq National Market, Nasdaq
SmallCap Market or in the over-the-counter market, in privately negotiated
transactions, or in a combination of such methods, to notify the Company at
least five (5) business days prior to the date on which the Holder first offers
to sell any such Registrable Securities.

                           (e) Each Holder acknowledges and agrees that the
Registrable Securities sold pursuant to the Registration Statement described in
this Section are not transferable on the books of the Company unless the stock
certificate submitted to the transfer agent evidencing such Registrable
Securities is accompanied by a certificate reasonably satisfactory to the
Company to the effect that (i) the Registrable Securities have been sold in
accordance with such Registration Statement and (ii) the requirement of
delivering a current prospectus has been satisfied.

                           (f) Each Holder agrees not to take any action with
respect to any distribution deemed to be made pursuant to such registration
statement which would constitute a violation of Regulation M under the Exchange
Act or any other applicable rule, regulation or law.

                           (g) At the end of the period during which the Company
is obligated to keep the Registration Statement current and effective as
described above, the Holders of Registrable Securities included in the
Registration Statement shall discontinue sales of shares pursuant to such
Registration Statement upon receipt of notice from the Company of its intention
to remove from registration the shares covered by such Registration Statement
which remain unsold, and such Holders shall notify the Company of the number of
shares registered which remain unsold immediately upon receipt of such notice
from the Company.

                  12.8 With a view to making available to the Holders the
benefits of certain rules and regulations of the Commission which at any time
permit the sale of the Registrable Securities to the public without
registration, the Company shall use its reasonable best efforts to:

                           (a) make and keep public information available, as
those terms are understood and defined in Rule 144 under the Act, at all times;

                           (b) file with the Commission in a timely manner all
reports and other documents required of the Company under the Exchange Act; and

                           (c) so long as a Holder owns any unregistered
Registrable Securities, furnish to such Holder, upon any reasonable request, a
written statement by the Company as to its compliance with Rule 144 under the
Act, and of the Exchange Act, a copy of the most recent annual or quarterly
report of the Company, and such other reports and documents of the Company as
such Holder may reasonably request in availing itself of any rule or regulation
of the Commission allowing a Holder to sell any such securities without
registration.

                                       14
<PAGE>   15

                  12.9 The rights to cause the Company to register Registrable
Securities granted to the Holders by the Company under Section 12.1 may be
assigned in full by a Holder in connection with a transfer by such Holder of at
least 500,000 shares of its Registrable Securities, provided, however, that (i)
such transfer may otherwise be effected in accordance with applicable securities
laws; (ii) such Holder gives prior written notice to the Company; and (iii) such
transferee agrees to comply with the terms and provisions of this Note, and such
transfer is otherwise in compliance with this Note. Except as specifically
permitted by this Section 12.9, the rights of a Holder with respect to
Registrable Securities as set out herein shall not be transferable to any other
Person, and any attempted transfer shall cause all rights of such Holder therein
to be forfeited.

                  12.10 With the written consent of the Company and the Holders
holding at least a majority of the Registrable Securities that are then
outstanding, any provision of this Section 12 may be waived (either generally or
in a particular instance, either retroactively or prospectively and either for a
specified period of time or indefinitely) or amended. Upon the effectuation of
each such waiver or amendment, the Company shall promptly give written notice
thereof to the Holders, if any, who have not previously received notice thereof
or consented thereto in writing.

                  12.11 Except to the extent any delay is due to the failure of
a Holder to reasonably cooperate in providing to the Company such information as
shall be reasonably requested by the Company for use in the Registration
Statement, in the event that the Registration Statement is not filed by the date
that is 30 days following the Conversion Date, the Company shall, for no
additional consideration, pay to each Holder as liquidated damages and not as a
penalty an amount in cash equal to one percent (1%) of the outstanding principal
then outstanding hereunder for each 15 day period in which the Registration
Statement remains unfiled; provided, however, that in no event shall the amount
of liquidated damages payable by the Company to any Holder pursuant to this
Section 12.11 exceed ten percent (10%) of the amount outstanding hereunder.

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

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

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

                                       15
<PAGE>   16

it may be entitled. Noteholder will be entitled to recover its costs of suit,
regardless of whether such suit proceeds to final judgment.

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

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

                           (i)      If to Noteholder:

                                    The Canopy Group, Inc.
                                    333 South 520 West, Suite 300
                                    Lindon, Utah 84042

                                       16
<PAGE>   17

                           With a copy (which shall not constitute notice) to:

                                    Parsons Behle & Latimer
                                    201 S. Main Street, Suite 1800
                                    Salt Lake City, Utah 84111
                                    Attention:  Brent Christensen

                           (ii)     If to Company:

                                    The Santa Cruz Operation, Inc.
                                    425 Encinal
                                    Santa Cruz, California 95061
                                    Attention:  Chief Executive Officer and Law
                                                and Corporate Affairs

                           With a copy (which shall not constitute notice) to:

                                     Wilson Sonsini Goodrich & Rosati
                                     650 Page Mill Road
                                     Palo Alto, California 94304
                                     Attention:  Michael Danaher

or to such other address as may have been furnished to the other party in
writing pursuant to this Section 17, except that notices of change of address
shall only be effective upon receipt.

         18. GOVERNING LAW; CONSENT TO JURISDICTION. This Note and all matters
relating to this Note shall be governed by and construed in accordance with the
internal laws (and not the law of conflicts) of the State of Utah. Each of the
parties submits to the jurisdiction of any state or federal court sitting in
Salt Lake County, Utah, in any action or proceeding arising out of or relating
to this Note or any other matter arising between the parties and agrees that all
claims in respect of the action or proceeding shall be heard and determined in
any such court. Each party also agrees not to bring any action or proceeding
arising out of or relating to this Note or any other matter arising between the
parties in any other court. Each of the parties waives any defense of
inconvenient forum to the maintenance of any action or proceeding so brought.

                           [Signature page to follow]

                                       17
<PAGE>   18

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

                                           THE SANTA CRUZ OPERATION, INC.

                                           By:
                                                  ------------------------------
                                           Name:
                                                  ------------------------------
                                           Title:
                                                  ------------------------------

AGREED AND ACCEPTED:
THE CANOPY GROUP, INC.

By:
       ------------------------------
Name:
       ------------------------------
Title:
       ------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}]]