Document:

<PAGE>

                                                                    Exhibit 10.6

--------------------------------------------------------------------------------
Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as *****. A complete version of this exhibit has been
filed separately with the Securities and Exchange Commission.
--------------------------------------------------------------------------------

                COMMERCIAL APPLICATION PARTNER (CAP) AGREEMENT
                ----------------------------------------------

This Agreement is made effective June 26, 1996 between SYBASE, INC.
("Sybase") with offices at 6475 Christie Avenue, Emeryville, California 94608
(or SYBASE CANADA LIMITED, with offices at 1 Robert Speck Parkway, Suite 800,
Mississauga, Ontario, Canada L4Z 3M3), and DeskTalk ("Partner"), with offices
at 19401 South Vermont Ave. Torrance, CA 90502.

1.  License Grant.  Subject to the terms and conditions below, Sybase grants to
Partner a nonexclusive and nontransferable license to market and distribute
copies of unmodified object code versions of those Sybase and/or Powersoft
software products identified in the attached initialed Schedules along with
accompanying documentation ("Programs") to Partner's customers ("End-Users") who
will use the Programs in the applicable Territory described in each Schedule A,
provided that the Programs are distributed for use with computer application
programs marketed by Partner ("Application Software").  Partner may also sell to
End-Users certain Sybase services as describe dint he Schedule(s).
Notwithstanding the above, if the Territory includes any of the Prohibited
Countries set forth in Sybase's then current "Prohibited Country List" (a
current copy of which has been provided to Partner), Partner may not market or
distribute Programs for use in such Prohibited Countries.  In connection with
the distribution rights granted above, Partner may appoint distributors to
distribute the Programs to End-Users within the Territory.  The appointment of
distributors shall be by contracts which require that the distributor market the
Programs only in accordance with the terms of this Agreement and on a basis
which protects the proprietary interests of Sybase in and to the Programs to the
same extent that Partner's proprietary interests in its own products are
protected (but in any event no less than a reasonable extent).  Partner may
order under this Agreement copies of the Programs for (a) its own internal
production purposes and/or developing and supporting the Application Software
("Internal Use Copies") and (b) Partner providing demonstrations and training
for the Application Software ("Demonstration Copies").

2.  Fees and Payment Terms.  For the first year of this Agreement, Partner shall
be responsible for paying to Sybase a non-refundable program fee shown in
Schedule A ("Initial Fee"). The Initial Fee is due upon execution of this
Agreement by Partner. For each additional year, a non-refundable annual program
renewal fee ("Annual Renewal Fee") as set forth in such Schedule is due and
payable upon each anniversary of the date of this Agreement. Fees as set forth
in the attached Schedule(s) shall be due to Sybase for each copy of the Programs
ordered by Partner for an End-User and for each Internal Use Copy; such fees
shall be based on Sybase's then-current price list for the country in which the
Programs are to be used ("Price List"). The license fee for Demonstration
Copies, if any, is set forth in the Schedule(s). Notwithstanding the above,
there is no charge for authorized Evaluation Copies distributed to End-Users.
("Evaluation Copies" are copies of the Programs made by Partner from Master
Disks (as defined below) which may only be used by End-Users for up to the
number of days designated in the applicable Schedule, after which they must be
returned to Partner.) License fees for copies made from Master Disks and
distributed to an End-User in a particular calendar quarter shall be due and
payable to Sybase within 30 days after the end of such calendar quarter along
with a written report showing the number of copies distributed by Partner during
such quarter. License fees for Internal Use Copies and Demonstration Copies, and
copies of the Programs which Sybase ships to Partner for distribution to End-
Users shall be due and payable to Sybase with Partner's order for the Programs
or, upon Sybase credit approval of Partner, 30 days after the date of Sybase's
invoice for the Programs. Any past-due invoice may subject Partner to credit
hold at the sole discretion of Sybase. All fees under this Agreement are stated
in United States dollars.

3.  Ownership.  Programs are owned by Sybase or its licensors and are protected
by copyright law, trade secret laws and international conventions. All rights in
and to patents, copyrights, trademarks and trade secrets in the Programs are and
shall remain with Sybase and its licensors. No title to or ownership of the
Programs is transferred to Partner or End-User. Partner shall not translate,
localize or modify any portion of the Programs without the prior written consent
of Sybase.

4.  Ordering and Delivery.  Internal Use Copies and Demonstration Copies shall
be ordered from Sybase.  Copies of the Programs for distribution to End-Users
may either be (a) ordered from Sybase and delivered by Sybase to Partner, or (b)
made by Partner from master disks ("Master Disks") that Sybase will make
available to

                                       1
<PAGE>

Partner. Partner shall ensure that all Sybase copyright and other proprietary
notices which are included in the Master Disks are included on any copies made
from the Master Disks. Partner acknowledges that Master Disks may contain
devices which count or limit the number of copies which can be made and Partner
will not tamper with such devices. Partner shall maintain Master Disks under
lock and key and shall allow only a specified number of its own employees to
make copies from Master Disks. Partner shall fully account for all copies of the
Programs. Partner shall not modify or alter any proprietary rights notice
contained within the Programs. Partner is strictly prohibited from providing
access or transferring the Master Disks to any third party. All shipments are
FOB origin, and Partner is responsible for all shipping charges. Except for
taxes on Sybase's income, Partner shall be responsible for any sales, use,
excise or any other form of taxes resulting from this Agreement.

5.  License Accompanying Programs.  If Partner sues the Programs, agrees to be
bound by the terms and conditions of the Sybase license agreement accompanying
each copy of the Program that the Partner obtains hereunder ("Sybase
Shrinkwrap").  Notwithstanding the above, Demonstration Copies shall only be
used for the purposes outlined in Section 1 above and shall be returned to
Sybase upon expiration or termination of this Agreement.  Partner shall ensure
that the End-User's use of the Programs is either subject to the terms and
conditions of (a) the Sybase Shrinkwrap (if Partner is making copies from a
Master Disk, it may reproduce the Sybase Shrinkwrap for such purposes) or (b) an
executed license agreement or shrinkwrap agreement between Partner and End-User
which is substantially similar to, and no less restrictive in protecting
Sybase's interests than, the Sybase Shrinkwrap.  If a conflict arises between
this Agreement and any such license agreement, the terms of this Agreement shall
prevail.  Partner shall undertake reasonable efforts to enforce the terms of any
license agreement between Partner and an End-User as it relates to the Programs.

6.  Reports.  Partner shall keep or cause to be kept full and accurate accounts
and records of all transactions made by it and by its authorized distributors
under this Agreement (including Evaluation Copies) in form such that all amounts
owing hereunder to Sybase may be readily and accurately determined.  Partner
shall undertake to assure that its distributors are (a) accurately reporting to
Partner all sales to End-Users and (b) otherwise complying with this Agreement.
Partner shall allow Sybase to examine its records to determine compliance with
this Agreement.  Any examination shall be at the expense of Sybase, shall occur
during regular business hours at Partner's offices and shall not interfere
unreasonably with Partner's regular activities.  Sybase shall give Partner 30
days or more prior written notice of the date of each such examination and the
name of the accountant who will be conducting the examination.  All information
obtained from conducting the examinations shall be maintained as Confidential
Information.  Partner agrees to pay Sybase any amounts owing as a result of
Partner's noncompliance with the payment provisions of this Agreement within 30
days of the date of the examination report which details such non-compliance.
In the event such amounts owed by Partner to Sybase exceeds 5% of total
royalties due, Partner shall pay the costs of such examination.

7.  Support & Maintenance.  Partner shall be solely responsible for providing
End-User technical support and service of warranty claims for Partner's
Application Software, including the Programs, provided that Partner may also
sell Sybase technical support services for the Programs only, on the terms
described in the attached Schedules.

8.  Independent Contractors.  Partner and Sybase are independent contractors and
are not agents or representatives of each other. Partner does not have the right
to bind Sybase and shall not misstate or misrepresent its relationship to
Sybase.

9.  Advertising; Trademarks.  Sybase may identify Partner as a Commercial
Application Partner in Sybase advertising and marketing materials. Partner shall
not make any representations concerning the Programs which are consistent with
Sybase's marketing materials and advertising. Partner may utilize applicable
Sybase trademarks and logos only in accordance with Sybase's then-current
published guidelines, and trademarks shall remain the exclusive property of
Sybase or its licensors. Partner shall suitably feature the Programs and related
trademarks and Sybase's ownership of the Program in any advertising, marketing
literature, product documentation and packaging of the Application Software.
Partner shall give appropriate recognition in the Application Software of
Sybase's proprietary rights in the Programs in the same manner, places and times
and no less conspicuously than the recognition of the proprietary rights of
others including Partner in the Application Software.

                                       2
<PAGE>

10.  Term and Rights Upon Termination.  This Agreement will become effective as
of the date first shown above and shall continue in force for a period of 3
years, subject to (a) Partner's payment of all fees owing hereunder, or (b)
termination under Section 11 below. Thereafter, this Agreement shall
automatically renew for additional one-year terms subject to payment of Sybase's
then-current Annual Renewal Fee and provided that Partner is not then in default
of this Agreement, unless written notice of termination is given by either party
at least 30 days prior to the expiration of the term then in effect. No
expiration or termination of this Agreement shall impair or affect (i) Internal
Use Copies, which shall continue so long as Partner is not in breach of the
Sybase Shrinkwrap or (ii) copies of Programs distributed by Partner to End-Users
in accordance with this Agreement prior to the effective date of the expiration
or termination of this Agreement. All Demonstration Copies shall be returned to
Sybase. Termination or expiration shall not release either party from its
liability to pay any fees accruing prior to the date of the termination or
expiration. Sections 3, 5, 10, 11, 12, 13, 14 and 18 of this Agreement shall
survive any expiration or termination of this Agreement.

11.  Default.  Either party may immediately terminate this Agreement or any
license granted hereunder by written notice to the other if such other party
breaches any term or condition of this Agreement, including but not limited to
failure to pay when due any fee hereunder, and does not remedy such breach
within 30 days of written notice thereof from the nonbreaching party. Each party
will reimburse the other party for all reasonable costs incurred by the other
party (including attorneys' fees) in collecting past due amounts hereunder. Any
non-remedial breach shall entitle the non-breaching party to terminate this
Agreement immediately upon written notice to the other party. This remedy shall
not be an exclusive remedy and shall be in addition to any other remedies which
the non-breaching party may have under this Agreement or otherwise.

12.  Confidential Information.  Each party will not disclose or use any business
and/or technical information of the other designated orally or in writing as
"Confidential" or "Proprietary" (together, "Confidential Information") without
the prior written consent of the other party. Such restrictions do not extend to
any item of information which (a) is now or later becomes available in the
public domain without the fault of the receiving party; (b) is disclosed or made
available to the receiving party by a third party without restrictions and
without breach of any relationship of confidentiality; (c) is independently
developed by the receiving party without access to the disclosing party's
Confidential Information, (d) is known to the recipient at the time of
disclosure, or (e) is produced in compliance with applicable law or court order,
provided that the disclosing party is given reasonable notice of such law or
order and an opportunity to attempt to preclude or limit such production. Upon
termination or expiration of this Agreement, each party shall immediately return
all copies of Confidential Information received from the other party. Partner
shall not release the results of any benchmark of the Programs to any third
party without the prior written approval of Sybase for each such release.

13.  Disclaimer of Warranty; Limitation of Liability.  Except as expressly
provided in the Sybase Shrinkwrap, NO EXPRESS OR IMPLIED WARRANTY OR CONDITION
IS MADE WITH RESPECT TO THE PROGRAMS OR SERVICES SUPPLIED BY SYBASE OR ITS
SUBSIDIARIES, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. The aggregate liability to
Sybase and its subsidiaries, if any, for any losses or damages arising out of or
in connection with this Agreement, whether the claim is in contract, tort or
otherwise, shall not exceed the amount paid by Partner to Sybase under this
Agreement for the affected Programs or services. UNDER NO CIRCUMSTANCES SHALL
SYBASE, ITS SUBSIDIARIES OR ITS LICENSORS BE LIABLE FOR SPECIAL, INDIRECT,
EXEMPLARY, INCIDENTAL AND/OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED
TO, LEGAL FEES, LOSS OF PROFITS, LOSS OR INACCURACY OF DATA OR LOSS RESULTING
FROM BUSINESS DISRUPTION, EVEN IF SYBASE HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES.

14.  Indemnification.  Partner indemnities and holds harmless Sybase, its
affiliates, directors, employees and agents from all third party claims,
including court costs and reasonable fees of attorneys and expert witnesses,
arising in connection with (a) a breach by Partner of its agreement with an End-
User or distributor (unless such breach was caused by Sybase's breach of this
Agreement or the Sybase Shrinkwrap), or (b) use of the Application Software if
liability is not caused by the Programs as provided by Sybase. Sybase
indemnifies and holds harmless Partner, its affiliates, directors, employees and
agents from all third party claims, including court costs and reasonable fees of
attorneys and expert witnesses, arising in connection with (i) a breach by
Sybase of the Sybase Shrinkwrap or (ii) use of the Programs as provided by
Sybase if liability is not caused by the Application Software.

                                       3
<PAGE>

15.  Export Restriction.  Partner shall not transfer, directly or indirectly,
any restricted Programs or technical data received from Sybase or its
subsidiaries, or the direct product of such data, to any destination subject to
export restrictions under U.S. law, unless prior written authorization is
obtained from the appropriate U.S. agency.

16.  Assignment.  This Agreement may not be assigned (by operation of law or
otherwise) or otherwise transferred in whole or in part by Partner unless
Partner has received prior written permission from Sybase, such permission not
to be unreasonably denied by Sybase. To the extent Partner is permitted to
assign this Agreement all provisions of this Agreement shall be binding upon
Partners successors or assigns.

17.  Notices.  All notices under this Agreement shall be in writing and either
delivered personally, sent by first class mail, express carrier or by confirmed
facsimile transmission to the address of the party set forth above (and if to
Sybase, to the attention of the General Counsel). All notices shall be deemed
given on the business day actually received.

18.  Other.  This Agreement, the initialed Schedules, and any documents
explicitly referred to therein, -constitute the entire agreement between the
parties, and no representation, condition, understanding or agreement of any
kind, oral or written, shall be binding upon the parties unless incorporated
herein. This Agreement may not be modified or amended, nor will the rights of
either party be deemed waived, except by an agreement in writing signed by
authorized representatives. of-Partner and Sybase. Purchase orders shall be
binding as to the products and services ordered, and the site for delivery of
Programs or performance of services as set forth on the face side of or a
special attachment to the purchase order. Other terms and preprinted terms on or
attached to any purchase order shall be void. This Agreement shall be governed
by, and construed in accordance with, the laws of California if Partner is
located in the United States and the laws of Ontario if Partner is located in
Canada without regard to their conflict of laws rules or the United Nations
Convention on the International Sale of Goods. If any provision of this
Agreement is held to be unenforceable, the parties shall substitute for the
affected provision an enforceable provision which approximates the intent and
economic effect of the provision. The parties have requested that this Agreement
and all documents contemplated hereby be drawn up in English. For Quebec
Province transactions: Les parties aux presentes ont exige que cette entente et
tous autres documents envisages par les presentes soient rediges en anglais.

Accepted and agreed on behalf of:

DeskTalk Systems, Inc.
________________________________  ("Partner)     Sybase, Inc. ("Sybase")
                                                 (or Sybase Canada Limited, if
                                                 applicable)

BY: /s/ PAUL MADICK                              /s/ GLEN GERMANOWSKI
________________________________                 _______________________________
(Authorized Signature)                           (Authorized Signature)

        Paul Madick                                  Glen Germanowski
________________________________                 _______________________________
(Printed Name)                                   (Printed Name)

Chief Operations Officer 6/26/96                 Senior Corporate Counsel 7/9/96
________________________________                 _______________________________
(Title)                  (Date)                  (Title)                  (Date)

                                       4
<PAGE>

                           SCHEDULE A - SILVER LEVEL
                           -------------------------

                to the Commercial Application Partner Agreement
                -----------------------------------------------

                     Database Partner Fees and Guidelines
                     ------------------------------------

<TABLE>
<S>                                <C>
---------------------------------------------------------------------------------------------------------------
Territory                          United States and Canada; however, Partner may sell application-specific
                                   deployment seats worldwide.
---------------------------------------------------------------------------------------------------------------
Initial Fee                        $ 895; includes up to 5 Demonstration Copies.
Annual Renewal Fee                 $ 895.
                                   Only one Initial and Annual Fee required per Agreement.

---------------------------------------------------------------------------------------------------------------
Evaluation Copies                  Entitled to 90-day Evaluation Copies.

---------------------------------------------------------------------------------------------------------------
Discount for Software Programs     Sybase will check block and initial if authorized to sell:

                                   [X] Enterprise Databases

                                   [X] Workplace Databases

                                   [X] Design Tools

                                   Discounts for the above software Programs are specified in the then-current
                                   Database Partner Products Price List.
---------------------------------------------------------------------------------------------------------------
Discount for sale of End-User      10% discount off then-current Price List on technical support subject to
 Technical Support                 End-User's execution of a Sybase support agreement.  Partner shall not sell
                                   renewals of technical support.

---------------------------------------------------------------------------------------------------------------
Discount for Partner Technical     10% discount off then-current Price List on any commercially available
 Support                           end-user technical support offering.

---------------------------------------------------------------------------------------------------------------
Discount for Partner Training      20% discount off then-current Price List on any Sybase standard training
                                   rates for Partner employees or agents trained at Sybase public training
                                   centers.

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

ACCEPTED and AGREED:   By:  /s/ PM           6/26/96    /s/ GG          7/9/96
                       ______________________________  _________________________
                       (Partner Initials)      (Date)  (Sybase Initials)  (Date)

                                       5
<PAGE>

          ADDENDUM TO COMMERCIAL APPLICATION PARTNER (CAP) AGREEMENT

This Addendum (the "Addendum") entered into on _______________ 199_ supplements
and amends the terms of the Commercial Application Partner (CAP) Agreement dated
__________________, 199_ (the "Agreement") between Sybase, Inc. ("Sybase") and
Desktalk Systems, Inc. ("Partner").  Capitalized terms not otherwise defined
shall have the meaning set forth in the Agreement.

Sybase and Partner agree as follows:

Section 1. entitled "License Grant." Insert the following words after the first
sentence:

"Partner shall have the right to embed the Programs with Partner's Application
Software."

Section 10. entitled "Term and Rights Upon Termination." On the fifth line,
delete and replace the term "30 days" with "90 days."

Definitions.
-----------

Terms used in connection with the Agreement mean the following:

The term "Workplace" means a level of Licensed Software which runs with an Intel
based platform, certain "low-end" UNIX based platforms or other platforms which
may be added from time to time, all as specified in the then current Price List,
designated as "Workplace' on an accepted Purchase Order, and subject to the
restrictions in the "Network License' definition set forth below.

The term "Enterprise" means a level of Licensed Software other than an Intel
based platform and certain "low-end" UNIX based platforms, or other platforms
which may be added from time to time, all as set forth in the then current Price
List, designated as "Enterprise" on an accepted Purchase Order, which may be
accessed as specified in the "Network License" definition.

The term "Named User" means a specific named person licensed to use a copy of
Licensed Software. The term "Seat" means a specific identifiable unique accessor
of information such as a terminal, PC, single user workstation or real time
device. Use of software or hardware which reduces the number of Seats directly
accessing the Licensed Software (sometimes called "multiplexing" or "pooling")
does not reduce the number of Seats required to be licensed, but rather the
number of licensed Seats must be equal to the number of distinct inputs to the
multiplexing software or hardware. Each properly licensed Seat or Named User can
access any licensed server on the network, regardless of the operating system.

The term "Networked License" means each copy of the Licensed Software which may
be accessed by any and all Seats or Named Users, that are licensed to access
such Licensed Software subject to the following restrictions: (i) Workplace
Seats and Workplace Named Users licensed to access a particular Licensed
Software may only access the Workplace level of such Licensed Software, and (ii)
Enterprise Seats and Enterprise Named Users licensed to access a particular
Licensed Software may access the Workplace and Enterprise levels of such
Licensed Software. Accordingly, Seats and Named Users in a Networked License are
not tied to a particular copy of the Licensed Software.

The term "Minimum Users" for Enterprise pricing (Networked Model) refers to a
minimum number of User licenses that must be purchased with certain Products
listed within the Sybase Price List. The Sybase Price List is subject to change
from time to time at the sole discretion of Sybase. Each Minimum Users
requirement is on a one time basis only and does not apply to any and all
subsequent Product licenses that are purchased for each Networked Model
environment. For example, if Customer purchases 2 SQL Server Server Licenses and
5 SQL Server Seat Licenses, the 5 Seats can access any of the two Servers. Each
additional Product [like Open Server] would be similarly licensed: 2 Open Server
Server Licenses and 5 Open Server Seat Licenses.

                                       6
<PAGE>

Except as amended above, the Agreement shall remain in full force and effect.

Sybase, Inc.                                    Desktalk Systems, Inc.

By: /s/ GLEN GERMANOWSKI                             /s/ PAUL MADICK
   ____________________________                 By:____________________________

Name:  Glen Germanowski                                Paul Madick
     __________________________                 Name:__________________________

Title: Senior Corporate Counsel                        Chief Operations Officer
      _________________________                 Title:_________________________

Date:        7/9/96                                          6/26/96
     __________________________                 Date:__________________________

                                       7
<PAGE>

          ADDENDUM TO COMMERCIAL APPLICATION PARTNER (CAP) AGREEMENT

This Addendum (the "Addendum") entered into on 1/20/1998 supplements and amends
the terms of the Commercial Application Partner (CAP) Agreement dated June 26,
1996 (the "Agreement") between Sybase, Inc. ("Sybase") and Desktalk Systems,
Inc. ("Partner"). Capitalized terms not otherwise defined shall have the meaning
set forth in the Agreement.

1.  Sybase grants Partner the following additional license rights during the
term of and subject to the terms of the Agreement and the amendment.  A "Seat"
is a specific identifiable unique accessor of information such as a terminal,
PC, single workstation or real time device.  As used herein, a "Named User" is a
specific named person licensed to use a Program.).

Partner may offer "Data Access Seat Licenses" (as defined below) to its End-
Users for access through the Internet to the Sybase SQL Server Program, along
with copies of Jconnect Program (downloaded by Partner from the Web), provided
End-User has and existing license for Sybase SQL Server Program or will license
Sybase SQL Server for use with the TrendWeb Application Software from Partner.

A "Data Access Seat License" permits an external Seat to access, via the
Internet, the Sybase SQL Server Program resident on the End-User's servers and
at its site, in conjunction with the TrendWeb Application Software. A Data
Access Seat may be an Enterprise or a Workplace level license. Data Access Seats
may query the database resident with the TrendWeb Application Software but may
not install or download the Sybase SQL Server Program or use the Sybase SQL
Server to develop or modify applications or perform other programming tasks.
Partner understands and will ensure that End-User acknowledges that the Sybase
SQL Server Program is an Application Deployment License.

Under this Addendum, Jconnect will be a full use copy and not an Application
Deployment License. An "Application Deployment License", "Application Deployment
Seat" or "Application Deployment Named User" is a license for a copy of a
Program, a Seat or a Named User (as applicable) which can only be used for the
purpose of (a) an End-User running Noncustom Application Software (excluding any
third party application programs marketed by Partner) and (b) extracting data on
a read only basis from the Application Software for use with other applications;
such extraction may either be through tools within the Application Software or
through third party tools. As used in the prior sentence, "Noncustom Application
Software" means Application Software which Partner distributes without change to
more than one End-User. As used in the prior sentence, the phrase "running
noncustom Application Software" means that the End-User cannot use the Programs
to create or alter columns, tables, schemes or databases unless (i) such
columns, tables, schemes and databases are created or altered by and within the
context of the Application Software (i.e., the Application Software must
generate the commands without the End User itself using the Program's command
verbs) and only include data first captured in the specific Application Software
in which the new columns or tables are created or altered (i.e., not transferred
into such Application Software from other Application Software or applications),
and (ii) the commands to insert, delete or modify data in the new or altered
columns, tables, schemas or databases must be included within existing "begin

                                       1
<PAGE>

transaction" and "commit transaction" statements in the original version of the
Application Software. Moreover, an Application Deployment Copy, Application
Deployment Seat or Application Deployment Named User may not be used to run
copies of Programs which have been modified through a full use license to
include modifications not permitted above. Notwithstanding the above, the End
User may use standard database administration command verbs used for backup,
recovery, space/index management and consistency checking in the course of
systems administration.

2.  In addition to license fees owed to Sybase by Partner for distribution of
Sybase SQL Server Program to End-Users, the following fees for Data Access Seats
plus single copy of Jconnect Program shall be paid under terms set forth under
the Agreement. Fees for Jconnect Program have been included in the Data Access
Seat fees below. For each copy of the TrendWeb Application Software distributed
to End-User, End-User shall license or have licensed a copy of Sybase SQL Server
Program per server (together, a "Unit").

Data Access Seat    MINIMUM PRICE OF DATA ACCESS SEATS PER UNIT (PER SERVER)

                    The greater of ***** of the net fees paid for the
                    Application Software or:

1                   *****
2-5                 *****
6-10                *****
11-20               *****
21-50               *****
51-100              *****
101-250             *****
251-500             *****
501-750             *****
751+                *****

3.  Partner agrees that prior to granting the Data Access Seat License to any
End-User, such End-User will sign an agreement with substantially similar terms
as those set forth in Paragraph 1 above.

4.  For the TrendWeb Application Software, Partner will send to Sybase no later
than 30 days after the end of a fiscal month, (a) a written or readable
electronic report showing the number of copies of Programs (including Jconnect
and Sybase SQL Server) distributed to each End-User, total Data Access Seats to
each End-User, Partner's price list price for each distributed product, the net
price, and the total amount owed Sybase and (b) a royalty payment for fees due.

                                       2

__________
*****  Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

<PAGE>

Except as amended above, the Agreement shall remain in full force and effect.

Sybase, Inc.                          Desktalk Systems, Inc.

By:  /s/ GLEN GERMANOWSKI             By:   /s/ PAUL MADICK
   _____________________________         _____________________________

Name:  Glen Germanowski               Name:   Paul Madick
     ___________________________           ___________________________

Title: Senior Corporate Counsel       Title:     General Counsel
      __________________________            __________________________

Date:          2/2/98                 Date:         1/20/98
     ___________________________           ___________________________

                                       3
<PAGE>

          ADDENDUM TO COMMERCIAL APPLICATION PARTNER (CAP) AGREEMENT

This Addendum (the "Addendum") entered into on Jan. 1, 1998 supplements
and amends the terms of the Commercial Application Partner (CAP) Agreement dated
June 26, 1996 (the "Agreement") between Sybase, Inc. ("Sybase") and Desktalk
Systems, Inc. ("Partner").  Capitalized terms not otherwise defined shall have
the meaning set forth in the Agreement.

1.  Partner will send Sybase no later than 30 days after a fiscal month end, (a)
a written or readable electronic report showing the number of copies of full use
Programs distributed to End-Users, total Programs distributed to each End-User,
total, Partner's price list price for each distributed product, the net price,
and the total amount owed Sybase and (b) a royalty payment for fees due.

2.  Partner shall pay the then current Update fee for the right to pass on
updates for full use Programs to its End-Users.

Except as amended above, the Agreement shall remain in full force and effect.

Sybase, Inc.                          Desktalk Systems, Inc.

By: /s/ GLEN GERMANOWSKI              By: /s/ PAUL MADICK
   ____________________________          ___________________________

Name: Glen Germanowski                Name: Paul Madick
     __________________________            _________________________

Title: Senior Corporate Counsel       Title: General Counsel
      _________________________             ________________________

Date: Feb. 2, 1998                    Date: 1/1/98
     __________________________            _________________________

                                       4
<PAGE>

                                 AMENDMENT TO
                   COMMERCIAL APPLICATION PARTNER AGREEMENT

This Amendment (the "Amendment") entered into on Feb. 4, 2000, supplements and
amends the terms of the Commercial Application Partner Agreement dated June 26,
1996 as previously amended (the "Agreement") between Sybase, Inc. ("Sybase") and
Desktalk Systems, Inc. ("Partner"). Capitalized terms not otherwise defined
shall have the meaning set forth in the Agreement.

1.  In the Addendum to Commercial Application Partner Agreement dated January
20, 1998, the following changes are made:

     Paragraph 3 of Section 1 is replaced with the following new paragraph.

     A "Data Access Seat License" permits an external Seat to access, via the
     Internet, the Adaptive Server Enterprise Program resident on the End-User's
     servers and at its site, embedded in the TrendWeb Application Software.  A
     Data Access Seat may be an Enterprise or a Workplace level license.

     In Section 4, "the TrendWeb" in line 1 is replaced with "all".  In line 4
     after "Data Access Seats" add "and all other Seats".

2.   a.   License Fee Payment. Partner shall pay Sybase a non-refundable,
irrevocable amount of ***** in prepaid license fees, due in accordance with
the following schedule: ***** due no later than February 4, 2000; *****
due no later than March 2, 2000, and ***** due no later than March 30, 2000.
Such amount may only be applied to license fees for the Adaptive Server
Enterprise Program ("ASE") Program distributed to End-Users under the Agreement.
Failure to meet such payment terms within the time periods set forth above will
result in termination of this Addendum.

     b.   Support. In exchange for the fees specified on the Exhibit A, Partner
shall receive the Extended Support Plan for one year from the date of the
Agreement set forth in the attached Extended Support Plan Attachment. Including
the new contacts specified on such Exhibit A, as of the date of this Amendment,
Partner has a total of 10 Extended Support U.S. contacts, and 3 Extended Support
International contacts. Additional Extended Support U.S. contacts may be
purchased at ***** each and additional Extended Support International contacts
may be purchased at ***** each. Such pricing is subject to change, in accordance
with the then current Price List.

3.   For the TREND and TREND related Application Software, Partner shall receive
the following pricing for the embedded ASE Program.

          a.   Partner shall receive (i) a ***** discount off the price of each
Workplace ASE Program Seat and Server and (ii) a ***** discount off the price of
each Enterprise ASE Program Seat and Server.

                                       1

__________
*****  Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

<PAGE>

          b.   The above discount is in addition to any Partner discount set
     forth in the Price List, and is to be calculated after the application of
     the standard Partner discount.

4.   For the TrendWeb Application Software dependent on ASE, license fee
royalties payable by Partner to Sybase for the Programs distributed under this
Addendum shall be calculated as ***** of Partner's worldwide Net Revenue. "Net
Revenue" shall mean the total license fees paid to Partner by its End User with
respect to the TrendWeb Application Software, excluding sales and similar taxes,
customs duties, shipment charges and other such ancillary items. Net Revenue
shall include the net present value of all installment payments due by the End
User, but shall exclude custom software development and consulting services. For
purposes of determining the amounts payable to Sybase hereunder, no deduction
from Net Revenue shall be made for royalties, commissions, costs of goods sold,
returns or other similar costs incurred without Sybase's express written
agreement. All payments shall be in US Dollars and shall be converted from
foreign currency amounts on the same basis and at the same conversion rates as
Partner generally uses for its own revenue accounting purposes for Partner
revenue transactions. For purposes of determining the Net Revenue from the
Application Software, if the Application Software is bundled with other hardware
or software, the Net Revenue attributable to the Application Software shall be
calculated on the basis of the prices of all components of the bundle. Partner
shall provide Sybase with supporting details of such Net Revenue calculations
upon request by Sybase from time to time. In addition, in no event shall the per
copy royalty payable by Partner to Sybase for any Program be less than the
following:

No. of Partner's
Seats Distributed           Minimum Per Copy Royalty

1                           *****
2-5                         *****
6-10                        *****
11-20                       *****
21-50                       *****
51-100                      *****
101-250                     *****
251-500                     *****
501-750                     *****
751+                        *****

5.   The amount set forth in Section 2, above, shall not be used for Development
Software or support or maintenance fees.

6.   Second Level Support/Updates Pricing.  For each copy of the Program
distributed by Partner, Partner shall pay Sybase an annual fee, for Second Level
support plus Updates as available, equal to ***** of the total license fees paid
to Sybase for each Program, provided Partner is current on support for its
Development Software.

7.   Partner will pass the following terms to the End-User: "A Program
designated as `Workplace' may only run on the operating environment specified in
the order. A Program

                                       2

__________
*****  Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.
<PAGE>

designated as `Enterprise' may only run on the operating environment specified
in the order, or on a Workplace operating environment."

8.  Term.  The Agreement is hereby extended to three years from the date of this
Addendum. The Agreement shall not be thereupon automatically extended.

Except as amended above, the Agreement shall remain in full force and effect.

Sybase, Inc.                            Desktalk Systems, Inc.

By:  /s/ GLEN GERMANOWSKI               By:  /s/ PAUL MADICK
   ________________________________        _______________________________

Name:  Glen Germanowski                 Name:  Paul Madick
     ______________________________          _____________________________

Title: VP/Associate General Counsel     Title:   General Counsel
      _____________________________           ____________________________

                                       3
<PAGE>

                        Sybase, Inc. PARTNER EXHIBIT A
           NETWORKED AND/OR STANDALONE LICENSED PROGRAMS AND SERVICE
<TABLE>
<CAPTION>
Partner Address: DESKTALK                             Ship To Address: DESKTALK                                Contact: ____________
                 19191 South Vermont Avenue 9th Floor                  19191 South Vermont Avenue 9th Floor    Phone:   ____________
                 Torrance, CA 90502                                    Torrance, CA 90502                      Contact: ____________
                                                                                                               Phone:   ____________
(check one)      SI ______  CAP [X]                                    Use a separate Exhibit A for each site. (Place Contact
                                                                                                                Information on
                                                                                                                 additional sheets
                                                                                                                   as needed)
(check one): Licensed Use: Demonstration ____ Evaluation ____ Internal ____ Distribution to End User [X] Outsourcing at Partner's
site ____ Outsourcing at End-User's site: ____
If Partner is ordering Programs as an Outsourcer, provide End-User name and address: _______________________________________________
(Partner may only order copies for Outsourcing if it has signed Outsourcing Addendum.)

In exchange for the Program licenses and services listed below, including Restricted Release licenses, Partner agrees to pay Sybase
or its assigns the following fees, due Net 30 days from the date of the invoice.

------------------------------------------------------------------------------------------------------------------------------------
Catalog No.  Product Name*               Version  Operating    Lic   Qty    Primary or       Total List      Disc %      Total
                                                   System    Type**         Secondary        Price (Use               Discounted
                                                                               Copy        list price for             License Fee
                                                                         ("P" or  "S")      country where
                                                                              **            Program will
                                                                                              be used)
------------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                         <C>      <C>        <C>      <C>   <C>            <C> <C>           <C>     <C>
9700         VAR PREPAY LICENSES                  ()                  1         P           $   *****         0.00    *****
10373ns      Adaptive Server Enterprise  1192     Sun Solar           1         P           $        0.00     0.00    $      0.00
98486        Add'l Extended Support                                                         $                         $
             Contact                                                  6
98561        Add'l Basic Global Support
             Con                                                      1                     $                         $
                                                                                   Totals   $   *****
<CAPTION>
---------------------------------------------------------
Catalog No.  Net First      Consulting,        Check if
             Year           Additional        Restricted
             Support        Documentation,     Release
             Fees           Additional
                            Education and
                            Other Fees
---------------------------------------------------------
<S>          <C>            <C>              <C>
9700         $     0.00     $                    |_|
10373ns      $     0.00     $                    |_|
98486        $     0.00     $                    |_|
98561        $     0.00     $                    |_|
Grand Totals $    *****
</TABLE>

*    License Type - (e.g. Server (SR), Seat(ST), Named User (NM), Standalone
     Seat (SS), Standalone Named User (SN) or Incremental CPU (IC)). E/W/O = E
     is Enterprise, W is Workplace and O is Other.

**   All licenses shall be subject to the terms of the Software License
     Agreement between the parties referenced above except for Programs licensed
     by a Sybase subsidiary or third party pursuant to a license agreement
     accompanying the Program media. Partner acknowledges that such license
     agreement may contain a different warranty period and that Sybase is not
     responsible for support of any Programs of such subsidiaries or third
     party. If support for any Sybase subsidiary or third party Programs is
     included on this Exhibit A, then the support shall be provided by such
     subsidiary or third party in accordance with its then current support
     policies.

     For each copy of SYBASE SQL Server included on this Exhibit A, Partner is
     deemed to have also licensed without further charge one Open Client/C
     Developer's Kit for each of the following operating systems: MS-DOS,
     Windows, MS Windows 95, MS Windows NT, OS/2 and Macintosh. If an Open
     Client/C Developer's Kit or an ODBC Driver has been licensed for a
     particular operating system, then Partner may make and Use an unlimited
     number of copies of the Open Client/C or ODBC Driver Run-Time Programs (as
     applicable) running on such operating system.

***  In the case of Seats and Named Users, a `Primary Copy' is a Seat or Named
     User for which a license card is shipped to the Partner and a `Secondary
     Copy' is a Seat or Named User licensed without the shipment of card.

Sybase, Inc.:                           Name of Partner: DeskTalk Systems, Inc
                                                        _______________________

By: /s/ GLEN GERMANOWSKI                By: /s/ PAUL MADICK
   ___________________________________     ____________________________________

Name: Glen Germanowski                  Name: Paul Madick
     _________________________________       __________________________________

Title: VP/Associate General Counsel     Title: General Counsel
      ________________________________        _________________________________

                                        Date Exhibit Signed: 2/4/00
                                                            ___________________

                                       1

__________
*****  Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.
<PAGE>

Extended Support Attachment

1.   SUPPORTED PROGRAMS.

Sybase will provide SupportNow Extended support for the "Supported Programs"
listed on the Sybase quotation and as confirmed by Customer's purchase order or
written acknowledgement and a Sybase invoice. "Supported Programs" shall mean
the then current version of the listed software programs running the specified
operating system software and the immediately preceding version of such sort
program. Sybase will provide two certification test vouches.

2.   SUPPORT SERVICES.

     2.1  Telephone Technical Support. Sybase will provide telephone technical
support for the Supported Program 24 hours a day, 7 days a week, 365 days a
year. When a Customer calls for technical assistance outside of local normal
business hours or during locally observed holidays, the call is automatically
routed to an open support center. P1 cases will be worked on a 24 x 7 basis
until the System is operational or a reasonable workaround is in place. All
other case levels will be logged for next business day response by the local
support center. For P1 cases to be worked on a 24 x 7 basis, the Customer must
provide Sybase with a contact during this 24 x 7 period, either on site or by
beeper, to assist with data gathering, testing, and applying all fixes to
Customer's environment.

     2.2  Electronic Support.  Sybase will provide access to its electronic
support services, such as the web-based Technical Library, electronic case
management, electronic software distribution, and Newsgroups.

     2.3  Onsite Assistance.  Sybase, at its discretion, may provide optional
onsite assistance to Customer at Customer's request. For such optional onsite
assistance, Customer agrees to pay the then current time and materials charges
plus actual travel, living and out-of-pocket expenses reasonably incurred by
Sybase.

3    AUTHORIZED CONTACTS.

Sybase shall provide the Support Services for four Customer contacts. The
Customer may designate other support contacts for an additional annual charge
per contact. The Customer is responsible to designate the support contacts for
all matters related to service. Such contacts shall be knowledgeable in the
Supported Programs and all associated software.

4    RESOLUTION OF SUPPORT REQUESTS.

     4.1  Initiation of Support Request.  Customer's contact may contact the
designated Sybase Technical Support Center, or enter a request electronically
via the web, to initiate a software support request referred to as a case.  The
Technical Support Center will log the case and assign a reference number to it
called a case number.  When requesting service, Customer shall provide the
following information: (a) Customer's name, (b) support ID number, (c) priority
of support request, (d) product and version number of the software Customer is
using, including maintenance release number, (e) platform and operating system,
including version number, (f) front-end (client) product and version numbers,
(g) client machine operating system type and version, (h) description of the
problem, and (i) application program environment.

                                       1
<PAGE>

     4.2  Priority level.  Customer will use its reasonable business judgment to
categorize each support request associated with the Supported Programs as one.
of the following types of priorities:

          (a)  Priority One ("P1"): The software is not operational and no
workaround is possible, or a workaround exists but is unacceptable became of its
impact on Customer's business. Development or production is halted, or the
problem is having a severe impact on Customer's ability to continue development.

          (b)  Priority Two ("P2"): The software is operational, but its
functionality is seriously affected. There may be a workaround, but implementing
the workaround is time consuming and will adversely affect Customer's project.

          (c)  Priority Three ("P3"): The software is useable, but development
or production is impacted. Development/production can continue for a reasonable
amount of time before the problem becomes critical. A workaround is available
and acceptable.

          (d)  Priority Four ("P4"): The software is useable, but Customer has a
question or would like to submit an enhancement request.

     4.3  Response Policy. If, in Sybase's judgment, Customer correctly
identifies a support request u a Priority One severity, Sybase shall use
reasonable efforts to respond to the request within one (1) hour. If, in
Sybase's judgment, Customer correctly identifies a support request as a Priority
Two severity, or a Priority Three/Four severity, Sybase shall use reasonable
effort to respond within two (2) hours, or six (6) hours respectively. After
responding to the call and gathering any additional required information, Sybase
will develop and communicate a plan for addressing the support request, which
may involve providing a fix, developing a workaround, or providing some other
solution.

     4.4  Access and Configuration. Customer shall provide Sybase and its
designees with dial-in telephone or Internet access to the applicable system for
servicing under this Agreement, provided that Sybase and its designees comply
with Customer's reasonable security requirements related to such telephone
access. In addition, the Customer will maintain all software, hardware, and
network equipment in the configuration recommended by Sybase or by the
appropriate equipment vendor.

     4.5  Escalation Response.  If at any point while a case is open the
Customer is not satisfied with the current plan of action, the Customer may
request escalation through the Technical Support engineer. The Technical Support
manager responsible for the team supporting the case will address escalation
requests and develop an action plan. This plan will be mutually agreed upon with
the Customer. Customers may request escalation to a higher level whenever they
feel it is necessary.

5    SOFTWARE SERVICES - PROGRAM REVISIONS.

     5.1  Deliverables.  Sybase will provide the following updates and
improvements to the Supported Programs, as they are made generally available to
Sybase SupportNow customers. When deploying such updates and improvements, the
Customer will maintain all software, hardware, and network equipment in the
configuration recommended by Sybase or by the appropriate equipment vendor.

     (a)  Bug Fixes and Workarounds. Sybase will provide bug fixes or workaround
solutions to correct, to the extent reasonably possible, any defects in the
Supported Programs, which cause the Supported Programs not to operate in
accordance with the Supported Programs

                                       2
<PAGE>

published end user documentation. Sybase reserves the right to make corrections
or fixes only to the current or immediately preceding version of the Supported
Programs at Sybase's sole discretion.

     (b)  New Version Releases. Sybase will provide enhancements to the
Supported Programs, which Sybase designates as "internal improvements". The term
"enhancement" shall mean any program, any part thereof, or any materials not
included in the Supported Programs at the time of execution of this Agreement,
which modify or improve the existing functions of the Supported Programs.
Enhancements do not include any now modules which Sybase designates as software
products and charges separately or any new software products which Sybase
designates by a different product name.

     (c)  Maintenance Releases. Sybase will provide periodic maintenance
releases with fully tested software fixes.

     (d)  Limitations.  Sybase does not have an obligation to modify the
Supported Programs to run with now versions of the Operating System.

     5.2 Delivery Method. Sybase will provide the revisions described under this
Paragraph 5 to Customer upon request by either shipment or electronic
distribution.

6    GLOBAL SUPPORT.

Support is provided only for contacts based in a single country.  Sybase may
provide optional geography coverage for support contacts based outside the
primary country at the Customer's request and if suitable Sybase personnel are
available in the requested country.  For such global support coverage, Customer
agrees to pay the additional then current annual global support contact fees.

                                       3
<PAGE>

             ADDENDUM TO COMMERCIAL APPLICATION PARTNER AGREEMENT

This Addendum  (the "Addendum") entered into on August 1, 2000 supplements and
amends the terms of the Commercial Application Partner ("CAP") Agreement dated
June 26, 1996 (the "Agreement") between Sybase, Inc. ("Sybase") and Desktalk
Systems, Inc. ("Partner"). Capitalized terms not otherwise defined shall have
the meaning set forth in the Agreement.

The Schedule A-Silver Level to the Commercial Application Partner Agreement is
modified as follows. "includes up to 5 Demonstration Copies" is deleted. In
exchange for payment of the Annual Renewal Fee, Partner shall hereby have the
right to make a reasonable number of Demonstration Copies.

Except as amended above, the Agreement shall remain in full force and effect.

Sybase, Inc.                              Desktalk Systems, Inc.

By: /s/ Glen Germanowski                  By: /s/ Joseph M. Feig
    --------------------------------           -------------------------------

Name: Glen Germanowski                    Name: Joseph M. Feig
      ------------------------------             -----------------------------

Title: VP/Associate General Counsel       Title: Chief Financial Officer
       -----------------------------             -----------------------------

Date: August 8, 2000                      Date: August 1, 2000
      ------------------------------            ------------------------------

                                       1<PAGE>
                                                                    Exhibit 10.7

--------------------------------------------------------------------------------
Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as *****. A complete version of this exhibit has been
filed separately with the Securities and Exchange Commission.
--------------------------------------------------------------------------------

                                  MERANT INC.

                         DISTRIBUTOR LICENSE AGREEMENT

     This Agreement is made between MERANT Inc., a California corporation, with
offices at 9420 Key West Avenue, Rockville, Maryland 20850 ("MERANT") and
Desktalk Systems Inc., with offices at 19401 S. Vermont Avenue, 9th Floor,
Torrance, CA 90502 ("Distributor"), and takes effect on July 15, 2000
("Effective Date").

     This Agreement is based on the following understandings between the
parties:

     A.   MERANT is willing to provide to Distributor, under business terms
specified in Schedule A, the MERANT Products specified in Schedule B; and

     B.   Distributor wishes to obtain the rights to include these MERANT
Products in Distributor's software products.

     Therefore, in consideration of the mutual promises, rights, and
responsibilities described below, the parties agree as follows:

     1.   Definitions. When used in this Agreement and its Schedules, the
underlined phrases in this Section shall have the following meanings:

          1.1  MERANT Product(s) shall mean those software products listed in
               -----------------
Schedule B, including all revisions, enhancements, upgrades, and new versions
thereof released generally to MERANT's customers as part of support and
maintenance. Further, unless specified otherwise in Schedule B, the definition
of MERANT Product is restricted to the OEM Version of the MERANT Product, where
the OEM Version is a MERANT Product restricted for use with Distributor's
application using MERANT's Branding Toolkit or other such locking mechanism
approved by MERANT.

          1.2  Distributor Application(s) shall mean software products developed
               --------------------------
by Distributor or for which Distributor otherwise has distribution rights that
are listed in Schedule A and all revisions, enhancements, upgrades, and new
versions thereof. In addition, Distributor's Applications must: (a) be in
compiled, executable form; (b) not provide substantially the same functionality
as the MERANT Products or have as one of their purposes to build other
applications that would compete with the MERANT Products; and (c) not expose the
source code or methodologies or document in any manner the programmatic
functions of the MERANT Products. Additionally, unless otherwise provided in
Schedule A, Distributor Applications shall not include "runtime" product
versions - i.e., versions of the Distributor Applications that allow end-user
applications created with Distributor Applications to be utilized by another
end-user.

                                       1
<PAGE>

     2.   Grant of Distributorship.
          ------------------------

          2.1. Appointment of Distributor. Subject to the terms and conditions
               --------------------------
of this Agreement, MERANT authorizes Distributor to distribute and sublicense
the MERANT Products but only to the extent those Products are incorporated into
or are part of permitted Distributor Applications. Distributor may not
distribute or sublicense a MERANT Product as a stand-alone product. The
distribution rights granted hereunder shall be worldwide, except that
Distributor shall be solely responsible at all times for strict compliance with
all laws governing the exportation of the MERANT Products. Distributor agrees
not to reverse compile, translate, or disassemble the MERANT Products, in whole
or in part, and further agrees that it will provide the same level of security
for MERANT Products as it provides for its own products, but in no event less
than reasonable care, to prevent third parties from performing such activities.
MERANT reserves all rights not expressly granted to Distributor in this License.

          2.2  Distribution Procedure. MERANT will provide Distributor with the
               ----------------------
MERANT Products, which may be used only in the form specified in Schedule B.

          2.3  Restriction on Licensing/Distribution. All distribution of the
               -------------------------------------
MERANT Products to end-users must be done pursuant to a software license
agreement that provides for limitation of damages for breaches of product
performance, reasonable intellectual property protection, and other
representations and warranties, limiting remedies to the license fees paid for
the product, and that excludes the recovery of special, consequential, and
indirect damages.

          2.4  Title to Software. Subject to the rights granted to Distributor
               -----------------
herein, all right, title, and interest in and to the MERANT Products, including
code, sequence, logic, structure and screens, and Documentation, and in and to
any improvements, enhancements, updates, or upgrades thereto, including concepts
and technology inherent in the MERANT Products, are, and at all times shall
remain, the sole and exclusive property of MERANT. Nothing contained in this
Agreement shall be construed directly or indirectly to assign or grant to
Distributor any right, title, or interest in or to trademarks, copyrights,
patents, or trade secrets of MERANT, or any ownership rights in or to the MERANT
Products.

     3.   Royalty Fees.
          ------------

          3.1  Royalties for Applications. For each license granted by
               --------------------------
Distributor allowing use of a Distributor Application, Distributor shall pay the
royalty as specified in Schedule A.

          3.2  Minimum Annual Guaranteed Royalty. For each annual period
               ---------------------------------
("Period") during which this Agreement is in effect, Distributor shall pay to
MERANT a Minimum Annual Guaranteed Royalty in the amount specified in Schedule A
for the right to use the MERANT Products in Distributor Applications.
Distributor shall pay this Minimum Annual Guaranteed Royalty as agreed to by the
parties as set forth in Schedule A to the extent it has not already been paid
under the procedures of Section 3.4.

          3.3  Advance Royalty Payment. Upon execution of this Agreement,
               -----------------------
Distributor shall prepay to MERANT a non-refundable royalty in the amount
specified in Schedule A. This Advance Royalty Payment shall be credited against
the first royalties reported under the

                                       2
<PAGE>

procedures specified in Section 3.4. It shall be refimded to Distributor only
upon MERANT's material, uncured breach of this Agreement.

          3.4  Reports and Payments Due. At such times as indicated in Exhibit
               ------------------------
A, Distributor shall provide reports in a form substantially similar to the
sample form attached as Exhibit D. To the extent that such reports indicate
royalty payments due in excess of the scheduled payment installment, such
amounts shall be included on the invoice for the next scheduled payment
indicated in Schedule A. In the case of royalties to be paid after the final
scheduled payment (if any), or after the Minimum Annual Guaranteed Royalty has
been met, MERANT shall deliver an invoice for such royalties within thirty (30)
days of receiving the report. Distributor shall make payment upon receipt of the
invoice from MERANT. All sums are to be paid in United States dollars. Any
payment not received when due shall bear interest at the rate of 18% per annum,
calculated monthly. Any payments (NLAR, royalties, etc.) made during a Period
shall not be applied to the Minimum Annual Guaranteed Royalty of any other
Period. Distributor's failure to provide reports as indicated in Schedule A
shall be considered a material breach of this Agreement, and MERANT shall be
entitled to terminate this Agreement for cause under the provisions of Section
10.2 below.

          3.5  Records. Distributor shall keep true and accurate records of all
               -------
Applications and MERANT Products distributed, in accordance with generally
accepted accounting principles, consistently applied. No more frequently than
once per year, MERANT shall have the right (upon ten business days prior notice)
to have a certified public accountant selected by MERANT audit the books of
Distributor to determine whether all royalties due have been paid. MERANT shall
pay the cost of such investigation, except in the event that such accountant
finds that royalties due for a period investigated have been underpaid by ten
percent (10%) or more, in which case the entire cost of the investigation shall
be bome by Distributor. Distributor shall immediately pay to MERANT any amounts
discovered to be owed as a result of the investigation, plus interest at the
rate of eighteen percent (1 8%) per annum, calculated monthly for each month the
amount due was outstanding.

          3.6 Financial Considerations. MERANT may assign and sell to a bank
              ------------------------
to be named, the amounts set forth herein due MERANT. The parties acknowledge
and agree that, in documents evidencing any such assignment, there will be
provisions, among others, providing that any such bank: (a) disclaims any
representation, guaranty or warranty, express or implied, including any implied
warranty of merchantability or fitness for a particular purpose regarding any
goods or services to be provided hereunder; and (b) will not be liable for any
loss or injury caused to MERANT Product licensees or any other person or
property (including lost profits and consequential, incidental or special
damages) directly or indirectly produced by any such goods, their failure to
operate properly, or any services.

     4.   Representation and Warranties of Distributor.
          --------------------------------------------

          4.1  Copyright. Distributor warrants that any publication of
               ---------
Distributor Applications will contain a copyright notice in the name of MERANT
in the following manner: "Portions of this software are copyrighted by MERANT,
1991-2000" and the copyright notice encoded in the MERANT Products shall be
reproduced with the MERANT Products. Distributor

                                       3
<PAGE>

shall display the MERANT copyright notice in those places where Distributor's
copyright notice is displayed.

          4.2  Authority. Distributor represents and warrants that it has the
               ---------
authority to enter into this Agreement, and to distribute the Distributor
Applications as contemplated hereunder, and that the performance of this
Agreement shall not cause a breach of any other obligation of Distributor.

     5.   Duties of Distributor.
          ---------------------

          5.1  Support. Distributor will provide support to its customers
               -------
consistent with its customary support policies and through its standard support
channels.

          5.2  Licenses. If Distributor believes, or is made aware, that any of
               --------
MERANT's contractual, statutory, intellectual property or other rights are being
violated, it agrees to notify MERANT promptly and cooperate in any
investigation.

          5.3  Compliance with Export Regulations. Distributor agrees that it
               ----------------------------------
shall at all times comply with all export laws and regulations of the United
States, as such laws and regulations may exist from time to time. Distributor
will indemnify and defend MERANTT from and against any claim that Distributor's
exportation of the MERANT Products violate such laws, and will pay all costs,
fines, damages or fees related to claims or findings of such violations.

     6.   Duties of MERANT.
          ----------------

          MERANT shall provide support as specified in Schedule C for the fees
set forth in Schedule A ("Support Fees"). Such support shall be for the
exclusive benefit of Distributor; MERANT shall not provide support to any
dealer, agent, representative, assignee or end-user customer of Distributor.
Such Support Fees are due and payable as specified in Schedule A.

     7.   Trademarks and Trade names.
          --------------------------

          7.1  Acknowledgment of Rights. Distributor acknowledges MERANT's
               ------------------------
representation that MERANT is the owner of all right, title, and interest in and
to those trademarks listed in Schedule B and Distributor agrees not to adopt or
use the Trademarks in any manner whatsoever except as expressly provided in this
Agreement.

          7.2  Use of Trademarks in Connection with Software and Services.
               ----------------------------------------------------------
Distributor agrees to use the Trademarks only to identify the MERANT Products or
to identify the authorized support and warranty services described.
Distributor's use of the Trademarks shall at all times be in accordance with
such styles and together with such Trademark notices as MERANT may require.
Distributor shall not combine the Trademarks with any other names or marks, and
agrees that this Agreement does not constitute any conveyance of any right,
title or interest in or to any Trademarks, except for the permitted uses
provided herein.

          7.3  Infringements. Distributor shall promptly notify MERANT if
               -------------
Distributor believes, or has been made aware, that there has been an
infringement or attempted infringement

                                       4
<PAGE>

of any MERANT Trademark, and shall assist MERANT at MERANT's expense in taking
such action against such infringement as MERANT, in its discretion, may elect.

     8.   Warranty.
          --------

          8.1  Warranty on Software. MERANT warrants that the MERANT Products
               --------------------
will conform in all material respects to their written Documentation at the time
of delivery to Distributor and for a period of thirty days (30) thereafter.
MERANT makes no warranty to the end-users of Distributor Applications, any such
warranty to be made and honored by Distributor alone. NO OTHER WARRANTY OR
CONDITION, EXPRESSED OR IMPLIED, INCLUDING WARRANTIES OR CONDITIONS RELATED TO
FITNESS FOR A PARTICULAR PURPOSE OR MERCHANTABILITY, IS GRANTED TO DISTRIBUTOR
OR ENDUSERS, AND ALL SUCH WARRANTIES AND CONDITIONS ARE EXPRESSLY EXCLUDED.

          8.2  Defective Software. Should the MERANT Products fail to meet the
               ------------------
warranty set forth above, MERANT will, at its sole option, repair or replace the
MERANT Products such that they conform to their Documentation. In the event such
options are not commercially practical, MERANT shall return any Advance Royalty
Payment specified under Section 3.3.

          8.3  Remedies. Sections 8 and 9 CONTAIN THE EXCLUSIVE
               --------
REPRESENTATIONS, WARRANTIES AND ASSOCIATED REMEDIES FOR ANY CLAIM ASSOCIATED
WITH THE PERFORMANCE OF THE MERANT PRODUCTS, REGARDLESS OF WHETHER SUCH CLAIM IS
MADE IN CONTRACT, TORT OR ON OTHER LEGAL THEORY.

      9.  Liability and Indemnification.
          -----------------------------

          9.1  Limitations on Liability. Distributor agrees that, regardless of
               ------------------------
the form of any claim, DISTRIBUTOR'S SOLE REMEDY AND MERANT'S SOLE OBLIGATION
SHALL BE GOVERNED BY THIS AGREEMENT, AND IN NO EVENT SHALL MERANT'S LIABILITY
EXCEED THE ROYALTIES ACTUALLY PAID FOR THE MERANT PRODUCT(S) THAT GAVE RISE TO
THE CLAIM DURING THE 12 MONTH PERIOD IMMEDIATELY PRECEDING THE CLAIM, PROVIDED
THAT THE ABOVE LIMITATION SHALL NOT APPLY TO CLAIMS FOR INFRINGEMENT PURSUANT TO
SECTION 9.3 OF THIS AGREEMENT. DISTRIBUTOR EXPRESSLY AGREES THAT IN NO EVENT
SHALL MERANT BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL OR SPECIAL DAMAGES
ARISING FROM SECTION 9.3, BREACH OF WARRANTY, BREACH OF CONTRACT, NEGLIGENCE, OR
ANY OTHER LEGAL THEORY, WHETHER IN TORT OR CONTRACT, EVEN IF MERANT HAS BEEN
APPRISED OF THE LIKELIHOOD OF SUCH DAMAGES OCCURRING, INCLUDING WITHOUT
LIMITATION DAMAGES FROM INTERRUPTION OF BUSINESS, LOSS OF PROFITS OR BUSINESS
OPPORTUNITIES, LOSS OF USE OF SOFTWARE, LOSS OF DATA, COST OF RECREATING DATA,
COST OF CAPITAL, COST OF ANY SUBSTITUTE SOFTWARE, OR LOSSES CAUSED BY DELAY.
MERANT shall not be responsible for any damages or

                                       5
<PAGE>

expenses resulting from alteration or unauthorized use of the MERANT Products,
or from unintended or unforeseen results obtained by Distributor resulting from
such use.

          9.2  Warranty Exclusions. Should any law under which this Agreement
               -------------------
is interpreted prohibit exclusion of certain conditions or warranties, the
required conditions or warranties shall be deemed included. The liability of
MERANT for any breach of such term, condition or warranty shall be limited, at
the option of MERANT, to any one or more of the following: (a) replacement of
the MERANT Products with functionally comparable software; (b) repair of the
MERANT Products to meet the required warranty or condition; (c) payment of the
cost of replacing the MERANT Products or of acquiring equivalent software; (d)
payment of the cost of having the MERANT Products repaired; or (e) a refund of
the royalties paid for the software giving rise to the claim.

          9.3  Intellectual Property Right Infringement. MERANT shall, at its
               ----------------------------------------
cost, defend or, at its sole option, settle any claim or suit brought against
Distributor for infringement by an MERANT Product of a United States copyright,
patent, trademark or trade secret provided that Distributor (a) notifies MERANT
promptly in writing of any such claim or suit; (b) gives MERANT full information
and assistance in settling and/or defending the suit; and (c) gives MERANT full
authority and control of the defense and/or settlement of any such action.
MERANT shall not be liable for any costs or expenses incurred by Distributor (a)
without MERANT's prior written authorization; (b) for any claim that arises in
whole or in part from the use of non-MERANT products in Distributor Application;
(c) for any claim based on Distributor's modification of the MERANT Products; or
(d) from use of other ffim the latest or second most recent available version of
the MERANT Products. If the MERANT Products become subject to a claim of
infringement for which MERANT may become liable, MERANT may at its option (a)
obtain the right to continue using the MERANT Products; (b) replace or modify
the MERANT Products to make them non-infringing, so long as the replacement or
modification meets substantially similar specifications; or (c) terminate this
Agreement and refimd to Distributor the royalties paid under this Agreement.
EXCEPT FOR THESE REMEDIES, MERANT SHALL HAVE NO LIABILITY TO DISTRIBUTOR OR ITS
CUSTOMERS FOR COPYRIGHT, PATENT, TRADEMARK OR TRADE SECRET OR ANY OTHER CLAIM
ASSOCIATED WITH INFRINGEMENT OF A PROPRIETARY RIGHT, NOR ANY LIABILITY TO
DISTRIBUTOR OR ANY SUBLICENSEE FOR DIRECT, INDIRECT OR CONSEQUENTIAL DAMAGES
FROM INFRINGEMENT.

     10.  Term and Termination.
          --------------------

          10.1 Tenn. This Agreement shall have an initial term from the
               ----
Effective Date through the date specified on Schedule A and shall thereupon
terminate automatically. This Agreement may be renewed subsequently, however,
for any specified period of time upon mutual written consent of the parties.

          10.2 Termination for Cause. MERANT may terminate this Agreement if
               ---------------------
Distributor fails to make any payment, or provide any required reports, when
due, including but not limited to failure to timely pay the Minimum Annual
Guaranteed Royalty, and thereafter fails to make payment in full, or provide any
required reports, within ten (10) days of notice by MERANT of its intention to
terminate. In the event of such Termination by MERANT for

                                       6
<PAGE>

Cause, the unpaid portion of all Minimum Annual Guaranteed Royalties specified
in Schedule A shall be immediately due and payable.

          10.3 Termination by Either Party. Either party may terminate this
               ---------------------------
Agreement upon the happening of one of the following events if the other party
fails to cure the problem within thirty (30) days of notice of an intent to
cancel.

               a.   The other party materially breaches any warranty or other
                    term of this Agreement or fails to perform any material duty
                    required hereunder; or

               b.   The other party materially fails to comply with any legal
                    prerequisites, formalities, and/or government regulations.

          10.4 Effect of Termination. Distributor agrees that upon expiration
               ---------------------
or termination of this Agreement under this Section 10, MERANT is discharged
from any further obligations under this Agreement and Distributor's rights to
distribute and license the MERANT Products and to use MERANT's trade name and
trademarks shall cease as of the date of such expiration or termination except
as follows: Within forty five (45) days of the delivery by MERANT or receipt by
MERANT of a notice of termination at the end of any term or expiration, or
within ten (10) days after automatic termination or termination for cause,
Distributor shall: (1) return to MERANT all MERANT Product media, if any; and
(2) destroy all copies of the MERANT Products in whatever for-zn they exist,
including the deletion of all copies from any electronic memories or remove the
MERANT Products from all Distributor Applications not yet shipped.
Notwithstanding the foregoing, with respect to any Distributor Applications that
are in finished product form and that have been sold (with no return option) to
Distributor's dealers or distributors prior to the termination date, Distributor
may grant the approved license to use the MERANT Products to end-users of these
specific copies of the Distributor Applications; provided, however, that this
permission does not allow Distributor, after the date of termination, to fill
orders of dealers or distributors that have not been filled on the date of
termination or that are received after that date, or to grant additional
licenses to users who already have a license for the Distributor Application on
the date of termination. All licenses for Distributor Applications previously
given to end-users by or through Distributor, provided they were in accordance
with the terms of this Agreement, shall continue in effect after termination or
expiration of the Agreement. Distributor may not license any inventory of
Distributor Applications containing the MERANT Products after the termination
date without prior written consent of MERANT.

          10.5 Survival of Certain Provisions. All requirements of
               ------------------------------
inderimification, payment, and terms related to use or protection of
intellectual property or confidential information, and provisions related to
venue and choice of laws, shall survive termination or expiration of this
Agreement.

     11.  No Agency, Representation or Joint Venture. It is expressly
          ------------------------------------------
understood that Distributor and MERANT are business entities independent of one
another. Neither the making of this Agreement nor the performance of any part of
its terms shall be construed to constitute Distributor as an agent or
representative of MERANT for any purpose. Nor shall this Agreement be deemed to
establish a joint venture or partnership.

                                       7
<PAGE>

     12.  Publicity and Press Releases. Upon execution of this Agreement,
          ----------------------------
Distributor grants MERANT the right to announce its relationship with
Distributor, including the announcement of any joint marketing product release,
upgrade, or modification thereof. MERANT agrees to place Distributor's copyright
notice on any and all press releases, publicity or marketing collateral that is
used in conjunction with an announcement of an MERANT Product and a Distributor
Application.

     13.  Force Maieure. Failure of MERANT or Distributor to perform
          -------------
obligations hereunder or a portion thereof if occasioned in whole or in
substantial part by any act of God, fire, explosion, perils of sea, flood, war,
or action of any governmental authority, shall excuse the non-performing party
from performing for the duration of such excusing event.

     14.  Assignment. The rights granted herein to Distributor are personal,
          ----------
nontransferable, and non-assignable in whole or in part without prior written
consent of MERANT, which consent shall not be unreasonably withheld. Assignment
shall be deemed to occur upon transfer of more than fifty percent of the equity
in Distributor within a period of twelve months. Notwithstanding the above,
Distributor may assign this Agreement in whole to any subsidiary, division, or
parent company of Distributor, provided MERANT is so notified in writing prior
to such transfer.

     15.  Headings. The headings contained in this Agreement are for
          --------
convenience only and should not be construed to limit or expand any terms
otherwise provided.

     16.  Notices. Any notice made in relation to this Agreement shall be sent
          -------
to the addresses set forth above, or such other address as the intended
recipient has previously designated by written notice. The notice shall be sent
by courier or overnight service, which requires signature for receipt, or by
facsimile the receipt of which is confirmed in writing.

     17.  Legal Review. It is acknowledged that this Agreement was initially
          ------------
prepared by MERANT. Both parties, however, have had an opportunity for legal
review of all terms. The parties therefore agree that, in interpreting any
issues which may- arise, any rules of construction related to who prepared the
Agreement shall be inapplicable, each party having contributed or having had the
opportunity to clarify any issue.

     18.  Partial Illegality. It is agreed that if any provision, or part of a
          ------------------
provision, of this Agreement is held to be invalid or unenforceable under any
applicable statute or rule of law, then the parties shall use their best efforts
to replace the invalid or unenforceable provision by a provision that, to the
extent permitted by applicable law, achieves the purposes intended under the
original provision and allows the parties the intended benefit of their bargain.
If it cannot be so reformed, it shall be omitted. The balance of this Agreement
shall remain valid and unchanged and in full force and effect.

     19.  Waiver of Compliance. Any failure by either party to enforce at any
          --------------------
time any term or condition under this Agreement shall not be considered a waiver
of that party's right thereafter to enforce each and every term and condition of
this Agreement.

                                       8
<PAGE>

     20.  Applicable Law. The parties agree that this Agreement shall be
          --------------
governed and construed by the laws of the state of California, and that no
conflict-of-laws provision shall be invoked to permit application of the laws of
any other state or jurisdiction.

     21.  Amendments.  All amendments to or changes in this Agreement must be
          ----------
memorialized in a writing executed by both parties.

     22.  Extension of Rights. MERANT may, in its discretion, extend any of its
          -------------------
rights and obligations contained in this Agreement to MERANT plc (MERANT's
parent company) and/or any of MERANT plc's direct and indirect subsidiaries and
affiliates as though they were MERANT under this Agreement, but MERANT shall
continue to be liable in all respects for all obligations under the terms of
this Agreement for its own actions as well as those of MERANT plc and its direct
and indirect subsidiaries and affiliates.

     23.  Entire Agreement. This Agreement constitutes the entire agreement and
          ----------------
understanding between the parties on the subject matter herein, and supersedes
any and all prior agreements (written and oral) between the parties.

     MERANT and Distributor agree that they have read this Agreement, understand
it, and intend to be bound by its terms and conditions. Tle parties or their
authorized representatives signify their agreement and acceptance by their
signatures below on duplicate originals.

AGREED AND ACCEPTED:

MERANT Inc.                                     Desktalk Systems Inc.

By:  /s/ LEO MILLSTEIN                          By:  /s/ DAVID WOODALL
   __________________________                      _____________________________

Name:  Leo Millstein                            Name:  David Woodall
     ________________________                        ___________________________

Title:  VP, GENERAL COUNSEL                     Title:   CEO
      _______________________                         __________________________

Date:   July 19, 2000                           Date:   July 13, 2000
     ________________________                        ___________________________

                                       9
<PAGE>

                                  SCHEDULE A

                                 FEE SCHEDULE

1.   The Termination Date (Paragraph 10.1) is 11/15/02.

2.   For the purposes of this Schedule, the following provision shall apply in
     lieu of Sections 3.1 - 3.5: Unlimited Count Distribution Royalty Fee.  For
     the period beginning July 15, 2000 and ending November 15, 2002, MERANT
     grants Distributor a license to distribute an unlimited number of copies of
     MERANT Products listed in Schedule B that are embedded within the
     Distributor Applications defined in this Schedule A (the "Unlimited Count
     License"). In return Distributor shall pay MERANT an unlimited count
     distribution royalty equal to ***** (the "Unlimited Count Distribution
     Royalty Fee"). This Unlimited Count Distribution Royalty Fee is due and
     payable as follows: ***** on or before August 15, 2000 and ***** on
     or before November 15, 2001.

     No royalty reports shall be due for those MERANT Products licensed pursuant
     to the Unlimited Count License.

3    The Minimum Annual Support Fee is included as part of the Unlimited Count
     Distribution Royalty Fee.

4.   The software products developed by Distributor, or for which Distributor
     otherwise has distribution rights, that are products with which MERANT
     Products may be combined for creation of a Distributor Application are as
     follows:

<TABLE>
<CAPTION>
     ---------------------------------------------------------------------------------------------
     Application Name     Platforms      Royalty Rate Per     Royalty Rate Per      SupportNet per
                                             Period 1             Period 2              Period
     ---------------------------------------------------------------------------------------------
<S>                       <C>            <C>                  <C>                   <C>
         Trend(TM)        NT & Unix            *****                *****              included
     ---------------------------------------------------------------------------------------------
</TABLE>

6.   Notwithstanding the terms and conditions in Section 1.2 of the Agreement,
     the Distributor Applications may include "runtime" product versions;
     provided, however, that any reports/programs developed with such "runtime"
     product versions may not contain the MERANT Products.

7.   The terms of this Agreement will be held open for signing until July 15,
     2000.

                                                     Please initial acceptance:

                                                        /s/   DW
                                                     __________________________

                                                     __________________________

                                       10

__________
*****  Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

<PAGE>

                                  SCHEDULE B

                               MERANT PRODUCTS

MERANT Products shall include the English language version of the products
listed below. Distributor acknowledges that any other MERANT products, are not
included in the definition of MERANT Products and may not be distributed without
a separate agreement or written modification to this Agreement.

Workstation / Client based licenses of:

     DataDirect SequeLink* OEM JDBC client (both the strong encryption and no
     encryption version)

     DataDirect SequeLink* Server for all currently available platforms and
     databases excluding NWS (both the strong encryption and no encryption
     version)

Server based licenses of:

     DataDirect SequeLink* OEM JDBC client (both the strong encryption and no
     encryption version)

     DataDirect SequeLink* Server for all currently available platforms and
     databases excluding MVS (both the strong encryption and no encryption
     version)

*These products have two versions: one with security features that contain
strong (greater, than 64-bit key) encryption and one with security features
which contain no encryption. The versions with encryption are subject to the
authority of the U.S. Bureau of Export Administration ("BXA") and may only be
distributed outside the United States pursuant to a license from the BXA. Unless
otherwise noted on this Schedule B, the products licensed under this Agreement
are the versions with security features that contain no encryption, which may be
distributed outside of the United States without a license. MERANT agrees that
it shall provide reasonable assistance to Distributor to facilitate the
application for any such license to distribute the MERANT Products outside of
the United States.

______________________________________________________________________________

 Unless otherwise specified on this Schedule B, the MERANT Products licensed
 under this Agreement are limited to English language versions of the MERANT
 Products (i.e., Documentation, help files, and error messages are in English
 language form only).
______________________________________________________________________________
 MERIT Products outside of the United States

                                                     Please initial acceptance:

                                                        /s/  DW
                                                     __________________________

                                       11
<PAGE>

                                  SCHEDULE C

                                    SUPPORT

"SupportNet" support shall include toll free Answerline support between 8:30 AM
and 8:00 PM EST Mon-Fri, 24 hour emergency beeper service, World Wide Web forum
support, e-Mail as well as maintenance releases and new releases as they become
generally available. These services are provided pursuant to payment of the
Support Fees defined herein. Support services will be provided in MERANT's North
American support organization only.

                                       12
<PAGE>

                              Amendment Number 1
                       to Distributor License Agreement
                            Effective July 15, 2000
                                By and Between
                                  MERANT Inc.
                                      And
                            Desktalk Systems, Inc.

This Amendment I ("Amendment") dated July 15, 2000 ("Effective Date") by and
between MERANT Inc. ("MERANT") and Desktalk Systems, Inc. ("Distributor"),
hereby amends the above referenced Distributor License Agreement (the
"Agreement"). All capitalized terms used herein and not otherwise defined shall
have the meaning given them in the Agreement.

1.   The first sentence in Section 2.1 of the Agreement is hereby deleted in its
     entirety and is replaced as follows:

          "Subject to the terms and conditions of this Agreement, MERANT
          authorizes Distributor to distribute and sublicense the MERANT
          Products, directly or through Distributor's authorized channel
          partners, but only to the extent those Products are incorporated
          into or are part of permitted Distributor Applications."

2.   Section 7.2 of the Agreement is hereby amended by adding the following text
     after the first sentence in this Section:

          "Distributor further agrees that it shall require its authorized
          channel partners to use the Trademarks only to identify the MERANT
          Products or to identify the authorized support and warranty
          services described."

3.   The first sentence in Section 8.1 of the Agreement is hereby deleted in its
     entirety and is replaced as follows:

          "MERANT warrants that the MERANT Products will conform in all material
          respects to their written Documentation at the time of delivery to
          Distributor and for a period of ninety days (90) thereafter."

4.   Section 8.2 of the Agreement is hereby deleted in its entirety and is
     replaced as follows:

          "8.2 Defective Software. Should the MERANT Products fail to meet the
               ------------------
          warranty set forth above, MERANT will, at its sole option, repair or
          replace the MERANT Products such that they conform to their
          Documentation. In the event such options are not commercially
          practical, MERANT shall return any payments received under this
          Agreement."

5.   A New Section 8.4 is hereby added as follows:

                                       1
<PAGE>

          "8.4 Year 2000 MERANT warrants that the MERANT Products are Year 2000
          compliant, which means that such MERANT Products will operate
          correctly when the century changes from December 31, 1999 to January
          1, 2000 and thereafter, and continue to be used in the full manner for
          which it was licensed pursuant to this Agreement. The following
          limitations and disclaimers shall apply, however: (a) MERANT's Year
          2000 Statements are based upon commercially reasonable testing; (b)
          due to the inherent fallibility of all software and the inherently
          uneven quality of all data, MERANT does not warrant that MERANT's
          software products are ertor-free or will produce accurate results, (c)
          MERANT does not represent or warrant that any third party products
          will be Year 2000 compliant, nor does MERANT represent or warrant the
          interoperability of such third party products with any MERANT software
          product; and (d) MERANT makes no representations or warranties with
          respect to performance of MERANT's software products beyond the year
          2035.

               If the MERANT Products or any part thereof fail to conform to the
          warranty specified above, the sole and exclusive remedy available to
          Distributor shall, at MERANT's sole option and at no charge to
          Distributor, be either (a) the repair or replacement of the MERANT
          Products by MERANT within a reasonable period of time in order to make
          the MERANT Products Year 2000 compliant as specified above or (b) the
          upgrade of Distributor's version of the MERANT Products to a compliant
          version of the MERANT Products."

6.   A New Section 8.5 is hereby added as follows:

          "8.5 MERANT hereby represents and war-rants to Distributor that MERANT
          has not incorporated into the MERANT Products any viruses, won-ns,
          bombs, traps, Trojan horses or other code designed to interrupt normal
          processing ("Illicit Code") and has used commercially reasonable and
          up-to-date methods to check for such Illicit Code prior to the
          delivery of the MERANT Products to Distributor."

7.   Section 9.3 of the Agreement is hereby deleted in its entirety and is
     replaced as follows:

          "9.3 Intellectual Property Right Infringement. MERANT shall, at its
               ----------------------------------------
          cost, defend or, at its sole option, settle any claim or suit brought
          against Distributor for infringement by an MERANT Product of any
          copyright, patent, trademark or trade secret provided that Distributor
          (a) notifies MERANT promptly in writing of any such claim or suit
          within a reasonable time after Distributor receives notice of the
          same; (b) gives MERANT full information and assistance in settling
          and/or defending the suit; and (c) gives MERANT full authority and
          control of the defense and/or settlement of any such action. MERANT
          shall not be liable for any costs or expenses incurred by Distributor
          (a) without MERANT's prior written authorization; (b) for any claim to
          the extent that arises from the use of nonMERANT products in
          Distributor Application; (c) for any claim based on

                                       2
<PAGE>

          Distributor's modification of the MERANT Products; or (d) from use of
          other than the latest or second most recent available version of the
          MERANT Products that is available to Distributor pursuant to this
          Agreement. If the MERANT Products become subject to a claim of
          infringement for which MERANT may become liable, MERANT may at its
          option (a) obtain the right to continue using the MERANT Products; (b)
          replace or modify the MERANT Products to make them non-infringing, so
          long as the replacement or modification meets substantially similar
          specifications; or (c) terminate this Agreement and refund to
          Distributor the royalties paid under this Agreement. EXCEPT FOR THESE
          REMEDIES, MERANT SHALL HAVE NO LIABILITY TO DISTRIBUTOR OR ITS
          CUSTOMERS FOR COPYRIGHT, PATENT, TRADEMARK OR TRADE SECRET OR ANY
          OTHER CLAIM ASSOCIATED WITH RIFRINGEMENT OF A PROPRIETARY RIGHT, NOR
          ANY LIABILITY TO DISTRIBUTOR OR ANY SUBLICENSEE FOR DIRECT, INDIRECT
          OR CONSEQUENTIAL DAMAGES FROM INFRINGEMENT."

8.   Section 10.2 of the Agreement is hereby deleted in its entirety and is
     replaced as follows:

          "10.2 Termination for Cause. MERANT may terminate this Agreement if
                ---------------------
          Distributor fails to make any payment, or provide any required
          reports, when due, including but not limited to failure to timely pay
          the Minimum Annual Guaranteed Royalty, and thereafter fails to make
          payment in full, or provide any required reports, within fifteen (15)
          days of notice by MERANT of its intention to terminate. In the event
          of such Termination by MERANT for Cause, the unpaid portion of all
          Minimum Annual Guaranteed Royalties specified in Schedule A shall be
          immediately due and payable."

9.   Section 10.4 of the Agreement is hereby amended by adding the following
     text to the end of the Section:

          "Notwithstanding the foregoing, Distributor may retain a copy of the
          MERANT Products for the sole purpose of providing support to licensed
          end-users of Distributor Applications."

10.  The last sentence in Section 14 of the Agreement is hereby deleted in its
     entirety and is replaced as follows:

          "Notwithstanding the above, Distributor may assign this Agreement in
          whole to any subsidiary, division, or parent company of Distributor,
          provided MERANT is so notified in writing."

11.  If there is a conflict between the Agreement and this Amendment, then this
     Amendment shall govern. Otherwise, the Agreement shall remain in full force
     and effect.

                                       3
<PAGE>

AGREED AND ACCEPTED:

MERANT Inc.                                     Desktalk Systems Inc.

By: /s/ LEO MILLSTEIN                           By: /s/ DAVID WOODALL
   ____________________________                    ____________________________

Name: Leo Millstein                             Name: David Woodall
     __________________________                      __________________________

Title: VP, General Counsel                      Title: CEO
      _________________________                       _________________________

Date: July 19, 2000                             Date: July 13, 2000
     __________________________                      __________________________

                                       4

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