Document:

<PAGE>

                                                                   Exhibit 10.13

                                     *** CERTAIN CONFIDENTIAL INFORMATION
                                     CONTAINED IN THIS DOCUMENT
                                     (INDICATED BY ASTERISKS) HAS BEEN
                                     OMITTED AND FILED SEPARATELY WITH
                                     THE SECURITIES AND EXCHANGE
                                     COMMISSION PURSUANT TO A REQUEST FOR
                                     CONFIDENTIAL TREATMENT UNDER 17
                                     C.F.R. SECTIONS 200.80(B)(4), 200.803
                                     AND 230.406

                   TERRITORIAL SOFTWARE DISTRIBUTION AGREEMENT

This Territorial Software Distribution Agreement ("Agreement"), effective as of
this 12 day of April, 2004 (the "Effective Date"), is entered into by and
between Lindows, Inc., a Delaware corporation ("Supplier"), and Questar Srl, an
Italian corporation ("Distributor").

                                    RECITALS

A.       Distributor is in the business of licensing and distributing software
products in Italy, and desires to distribute Supplier's Product (as defined
below) in Italy.

B.       Supplier is in the business of developing and licensing software
products and services, and desires to authorize Distributor to distribute the
Product (as defined below) in Italy.

The parties agree as follows:

1.       DEFINITIONS:

         (a)      "Branding Guidelines" means Lindows' proprietary trade names,
trade dress, service marks, trademarks, logos, and indicia of origin and other
distinctive branding features as specified in the Lindows Branding Guidelines
attached hereto as Exhibit "C."

         (b)      "Customer" shall mean retail and end user purchasers of the
Product within the Territory.

         (c)      "Documentation" shall mean the end-user manuals relating to
the Software and services and related materials provided by Supplier to
Distributor hereunder.

         (d)      "Gold Master" shall mean a master disk image of the Software
as made available for delivery to Licensee via electronic download at the
Builder website http://builder.lindows.com or any successor website thereto or
on CD-ROM or other media.

         (e)      "OEM Customer" shall mean computer builders, system
integrators of computers, and value-added resellers of computers pre-installing
LindowsOS on

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<PAGE>

complete computer systems actually within the Territory and who execute a valid
Builder Agreement located at [http://www.lindows.com/licenses] with Supplier.

         (f)      "Product" shall mean the Software and Documentation listed on
Exhibit "A" attached hereto, including any modifications, improvements,
alterations, translations, localization, innovations, or changes of any kind
performed on the Software or Documentation by Distributor.

         (g)      "Services" shall mean the services set forth in Exhibit "A"
attached hereto.

         (h)      "Software" shall mean the computer program(s) listed in
Exhibit "A" in machine executable object code format only.

         (i)      "Territory" shall mean the country of Italy.

2.       APPOINTMENT: In consideration of the ***, Supplier hereby appoints
Distributor, and Distributor hereby accepts the appointment, as Supplier's ***
distributor in the Territory for the Licensed Term (as defined in Section 9
below), to distribute Localized Product (as defined in Section 2(d) below) on CD
ROM disks and repackaged as set forth in Section 2(a) below directly to
Customers in the Territory. Subject to Section 2(j) below, the restrictions set
forth in Section (i) below, and the other terms and conditions of this
Agreement, Supplier hereby grants to Distributor a non-transferable, personal,
non-sublicensable except as expressly set forth in this Section below, without
the right to have Distributor's rights exercised on behalf of Distributor by a
third party, limited right and license in the Territory during the Licensed Term
of this Agreement to:

         (a)      Copy and install the Software portion of the Localized Product
(as defined in Section 2(d) below) in object code format only onto copies of CD
ROM disks and repackage such CD ROM disks and the Documentation portion of the
Localized Product (as defined in Section 2(d) below) and with an end user
license agreement (the "End User License Agreement") with terms substantially
the same as those set forth in Exhibit "B", both for distribution to Customers
for retail sale within the Territory.

         (b)      Distribute the Localized Product to Customers with and
pursuant to the End User License Agreement directly through Distributor's retail
locations and Distributor's online retail site within the Territory.

         (c)      Set up OEM Customers for the distribution of Software,
Documentation, and Localized Product pre-installed on the respective OEM
Customer's computer system products. Specifically this appointment shall be
non-exclusive, Supplier's OEM customers shall be entitled to sell computer
systems with the Software and/or Documentation installed within the Territory,
but Supplier will not engage in securing OEM Agreements within the Territory,
unless in coordination with, and with compensation to Distributor as provided
herein. Distributor shall distribute the Software, Documentation and Localized
Product only to OEM Customers who have executed a valid Builder Agreement with
Supplier, only for installation in the Territory by such OEM Customer on such
OEM Customer's computer systems, only for distribution pre-installed on such OEM
Customer's computer systems, and only for distribution to

                                       2

<PAGE>

Customers with and pursuant to the End User License Agreement. Such OEM
Customers may distribute the Localized Product, only as installed on such OEM
Customer's computer systems, outside of the Territory. However, neither
Distributor nor OEM Customer shall have any of the exclusive rights granted in
this Agreement with regard to the distribution of the Localized Product to end
users located outside of the Territory.

         (d)      Translate and localize the English version of the Product into
appropriate Italian language using the pre-existing translation applications
available to create a localized Product (the "Localized Product"). Supplier
reserves the right to terminate this Agreement in its sole and complete
discretion in the event that the Localized Product does not operate effectively
or provide all defined functions, or is not accurate. Any translation and
localization problems or defects which do not entail Software malfunctioning,
operating defects, or inaccuracies shall not be deemed as a failure of
Supplier's reasonable requirements and shall not justify the termination of this
agreement. Distributor shall have forty-five (45) days to cure to Supplier's
satisfaction after receiving written notification by registered letter of the
Supplier's intention to terminate this agreement which notification shall
contain a detailed description of the grounds and requirements which are deemed
not to be satisfied. Absent the above-mentioned notice and cure period, any
termination shall be void and to no effect.

         (e)      Sublicense to third party distributors in the Territory
Distributor's rights under Sections 2(b) and 2(e) only and to third party
retailers in the territory Distributor's rights under 2(b) only, both pursuant
to an agreement consistent with and substantially the same as this Agreement
(except such agreement shall not include the rights set forth in Sections 2(c)
and 2(d)).

         (f)      Sublicense the Localized Product to Customers pursuant to the
End User License Agreement.

         (g)      Use the Product internally solely for the purpose of providing
customer support services, demonstrations and marketing purposes.

         (h)      For clarity, Distributor's rights under Section 2(b) shall
include the right for Distributor to distribute downloadable versions of the
Localized Product on-line and via the Internet, using both Distributor's
facilities and hardware resources for e-commerce, and any services, facilities
and hardware resources supplied by third party retailers who are validly
sublicensed pursuant to Section 2(e). If deemed necessary by an any of the
parties, further terms and conditions or the material sale implementation
procedures shall be settled with a further agreement between the same parties,
which shall be executed within a reasonable amount of time after request in
writing from either party.

         (i)      Subject to Section 2(j) below, Distributor will not, and shall
ensure that any OEM Customer, distributor, retailer, Customer, or other third
party does not: (a) copy, reproduce, distribute or otherwise make available the
Software, Documentation, Product or Localized Product or any portion or element
of any of the foregoing except as and to the extent expressly authorized herein
and by Supplier; (b) translate, adapt, enhance, create derivative works of or
otherwise modify the Software, Documentation,

                                       3

<PAGE>

Product or Localized Product or any portion or element of any of the foregoing,
except as expressly set forth in Section 2(d) above, (c) decompile, disassemble
or reverse engineer (except as and to the extent permitted by applicable local
law), or extract ideas, algorithms, procedures, workflows or hierarchies from,
the Software, Documentation, Product or Localized Product or any portion or
element of any of the foregoing, (d) use the Software, Documentation, Product or
Localized Product or any portion or element of any of the foregoing to provide
facility management, service bureau or similar services to third parties; or (e)
reproduce or use in any manner (except solely as and to the extent expressly
authorized under Section 2 above), or remove, destroy, obscure or alter any
Lindows.com Branding Features or any related materials placed on or contained
within the Software, Documentation, or Product or any portion or element of any
of the foregoing. Distributor shall not, and shall not allow any other OEM
Customer, distributor, or retailer to, make any representation or warranty
binding on or purporting to bind Supplier, including but not limited to in
connection with the performance, condition, title, non-infringement,
merchantability, fitness for a particular purpose, system integration or data
accuracy of the Software, Documentation, Product or Localized Product or any
portion or element of any of the foregoing, and Distributor shall disclaim all
warranties implied by law and other warranties to the maximum extent permitted
by applicable law. Distributor shall comply strictly with all United States
import and export regulations (and any similar regulations in foreign countries)
and shall obtain all required licenses, approvals and/or other clearances to
export, re-export or import, as applicable, the Software, Documentation, Product
or Localized Product or any portion or element of any of the foregoing, and any
associated technical data, including, but not limited to, where a Software,
Documentation, Product or Localized Product or any portion or element of any of
the foregoing is installed on computer system.

         (j)      Certain software, or portions thereof, included in the
Software are distributed under the GNU General Public License ("GPL"), other
similar open source license agreements and other third party agreements which
contain terms that expand (or restrict) Distributor's and/or third parties'
rights to certain portions of the Software. The GPL and other similar open
source license agreements permit Distributor and/or third parties to copy,
modify, redistribute and have access to the source code of certain portions of
the Software. The GPL, other similar open source license agreements, other third
party agreements, on-line documentation, source code, and other information
about all such software programs are available at the website
www.lindows.com/licensing (http://www.lindows.com/licensing). To the extent the
GPL, other similar open source license agreements or other third party
agreements require Supplier to provide rights to the applicable portions of the
Software that are broader than the rights granted elsewhere in this Agreement,
then the GPL and/or other similar open source license agreements shall take
precedence over the rights and restrictions set forth in this Agreement. Nothing
in this Section 2(j) shall permit Distributor or any third party to use the
Lindows.com Branding Features in connection with exercising the rights granted
under the GPL, other similar open source license agreements or other third party
agreements.

3.       OBLIGATIONS OF DISTRIBUTOR:

         (a)      Diligence. Distributor shall use commercially reasonable
efforts to promote the marketing and distribution of the Product to realize the
maximum sales

                                       4

<PAGE>

potential for the Product in the Territory. Except as expressly set forth
herein, Distributor shall be solely responsible for all costs and expenses
related to the advertising, marketing, promotion, and distribution of the
Product and for performing its obligations hereunder.

         (b)      Repackaging. Any retail repackaging of the Product must be
approved by Supplier before the distribution of the Product in the Territory,
provided, however, that such approval shall not be unreasonably withheld.

         (c)      Translation; Localization. Distributor shall translate or
localize the Product into the Italian language as provided in Section 2(d),
provided, however, that Supplier retain and shall have all ownership rights in
and to the Software, Documentation, Product, and Localized Product. Distributor
understands and agrees that Supplier shall have the right, at its sole and
absolute discretion, to sell and distribute the Localized Product to end users
or OEM customers outside of the Territory. Distributor shall provide a copy of
any and all publicly released versions of the Localized Product ten (10) days
prior to the release of the Localized Product. Distributor shall use its best
efforts to release the first version of the Localized Product within three (3)
months of the Effective Date of this Agreement (the "Release Date").

         (d)      Product Support.

                  (i) Distributor shall provide reasonable technical support to
Customers, including without limitation, maintaining trained and competent
technical and engineering support personnel for the Localized Product who are
sufficiently knowledgeable with respect to the Localized Product to answer
Customer questions regarding the use and operation of Product, responding
promptly to requests for technical support from Customers, and providing
technical support services to address and resolve Customers' support requests
with respect to the Localized Product.

                  (ii) Distributor shall ensure that all Customer questions
regarding the use or operation of Localized Product are initially addressed to
and answered by Distributor. Unless otherwise agreed in writing by Supplier,
Distributor shall not represent to any third party that Supplier is available to
answer questions from any Customer directly.

         (f)      End User License. Prior to providing any Customer with any
Software, Distributor shall ensure that each Customer has read, and agreed to
the terms and conditions of, and validly executed the End User License Agreement
contained in each software unit. As set forth more fully in Section 2(i),
Distributor shall not conduct, support, or permit, and shall not authorize any
third party to conduct, support, or permit, the copying, modification,
alteration, reverse engineering, disassembly or decompiling of the Product.

4.       OBLIGATIONS OF SUPPLIER:

         (a)      Marketing Support. Supplier shall provide Distributor with
reasonable marketing support, including providing reasonable quantities of
Supplier's advertising and promotional materials, pricing information and
technical data related to the Product. Supplier may also from time to time
provide, at Supplier's sole discretion, monetary

                                       5

<PAGE>

support for certain marketing and promotional activities involving the Product,
such as exhibitions, conventions, trade shows, and advertisements.

         (b)      Software and Membership ID's. Within ten (10) days of the
Effective Date of this Agreement, Supplier shall provide the following to
Distributor: (i) a Gold Master for the LindowsOS (both OEM & Retail versions);
(ii) a Gold Master for the Click-N-Run Express; (iii) a Gold Master for the
Lindows Laptop Edition; and (iv) the product identification numbers for the
Services identified in Exhibit A, in the amount consistent with the number of
Services purchased by Distributor pursuant to the terms of Section 6(a) below.

5.       ***

6.       PRICE/PAYMENT:

         (a)      Per Unit License Fee. Pursuant to Section 2(a) above, for each
CD-ROM disk copied from the Gold Master, and for each Service purchased from
Supplier, Distributor shall pay a per-unit licensing fee to Supplier (the "Per
Unit License Fee"). During the Licensed Term (as defined in Section 9 below),
Distributor shall pay Supplier the Per Unit License Fee according to the
following schedule:

<TABLE>
<CAPTION>
           PRODUCT               PRICE
-----------------------------    -----
<S>                              <C>
LindowsOS (Retail Version)        ***

LindowsOS (OEM Version)           ***

LindowsOS (Developer Version)     ***

LindowsOffice with StarSuite      ***

LindowsLive (CD)                  ***

Lindows Laptop Edition            ***
</TABLE>

<TABLE>
<CAPTION>
           SERVICE               PRICE    MINIMUM UNITS PURCHASED
-----------------------------    -----    -----------------------
<S>                              <C>      <C>
LindowsPlus Membership            ***               ***

VirusSafe                         ***               ***

SurfSafe                          ***               ***
</TABLE>

                  All payments by Distributor to Supplier under this Section
6(a) shall be made in U.S. Dollars via certified check or electronic wire
transfer. Distributor shall provide Supplier, on a monthly basis, sales,
shipment, inventory, and other written or electronic reports relating to
Distributor's activities under this Agreement during the prior month. All
payments made by Distributor to Supplier shall be made within thirty (30) days
from the date Distributor ships Product from its manufacturing facility.

         (b)      ***

         (c)      Taxes. The prices set forth in Section 6(a) above do not
include any Italian taxes, including franchise, sales and use taxes, if any.
Distributor shall be solely responsible for payment of any and all such taxes or
obligations, including any fines, penalties, or interest relating thereto.
Notwithstanding the foregoing, any sum required under applicable tax laws to be
withheld by Distributor for account of Supplier from

                                       6

<PAGE>

payments due to Supplier, shall be withheld and shall be promptly paid by
Distributor to the appropriate tax authorities. Distributor shall furnish
Supplier official tax receipts or other appropriate evidence issued by tax
authorities sufficient to enable Supplier to file a claim for credit in respect
of any sum so withheld against its home country's income taxes.

         (d)      Product Identification Numbers. For all Services that
Distributor purchases during the Licensed Term pursuant to Section 6(a) above,
Supplier shall provide Distributor with the product identification numbers for
the corresponding Services within ten (10) days of receipt of Distributor's
payment for such Services.

         (e)      Books and Records; Audit. Both parties shall maintain complete
books, records and accounts relevant to computation and accounting for amounts
payable under this Agreement. Each party agrees to allow an independent
certified public accountant the right to audit and examine such books, records
and accounts during normal business hours no more than once per year upon ten
(10) days notice at such examining party's expense, to verify the accuracy of
the reports and payments made under this Section 6. In the event any such audit
reveals that a party has knowingly breached a material obligation hereunder,
then, in addition to such other remedies as such examining party may have, the
audited party shall pay or reimburse to the examining party the cost of such
audit.

7.       ***

8.       LIMITED WARRANTY:

         (a)      Limited Warranty. Subject to the provisions of this Section 8
below, Supplier warrants that for a period of sixty (60) days from the date
Distributor receives any Gold Master ("Warranty Period") the Software will
conform to the specifications expressly set forth in the Documentation provided
by Supplier. In the event that the Software fails to conform to such
specifications during the Warranty Period, Supplier shall use commercially
reasonable efforts to repair and correct such errors so that the Software
conforms to such specifications. The foregoing sentence shall be Supplier's
entire obligation and liability to Distributor and any other party, and
Distributor's and any other party's sole and exclusive remedy, under this
Agreement and in connection with the Software, Documentation, and Product for
any breach of the limited warranty provided in this Section.

         (b)      Disclaimer of Warranties. EXCEPT AS EXPRESSLY PROVIDED IN
SECTION 8(a) ABOVE, SUPPLIER MAKES NO WARRANTIES OR CONDITIONS, EXPRESS,
STATUTORY, IMPLIED, OR OTHERWISE, AND SUPPLIER SPECIFICALLY DISCLAIMS THE
IMPLIED WARRANTIES AND CONDITIONS OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE. NOTWITHSTANDING THE FOREGOING, SUPPLIER DOES NOT EXCLUDE
LIABILITY TO THE EXTENT THAT SUCH LIABILITY MAY NOT BE EXCLUDED OR LIMITED BY
LAW.

         (c)      Customer Claims. Distributor shall ensure that all Customer
claims for warranty, repair, or replacement are addressed to Distributor and not
to Supplier.

                                       7

<PAGE>

9.       TERM AND TERMINATION:

         (a)      Licensed Term. This Agreement shall commence upon the
Effective Date and continue in full force and effect for a *** ("Licensed
Term"), unless earlier terminated in accordance with the provisions of this
agreement. ***

         (b)      Breach. If a party is in material breach of this Agreement and
has failed to cure such material breach within thirty (30) days after receiving
written notice from the other party of such material breach, the party not in
breach may terminate this Agreement. Without limiting the foregoing, either
party may terminate this Agreement effective upon written notice to the other
party stating such party's intention to terminate, in the event the other party:
(i) ceases to function as a going concern or to conduct operations in the normal
course of business (ii) has a petition filed by or against it under any
bankruptcy or insolvency law which petition has not been dismissed or set aside
within sixty (60) days of its filing; or (iii) fails to perform any of its
obligations under this Agreement so as to be in default hereunder and fails to
cure such default within thirty (30) days after written notice of such default.

         (c)      Customer Support. Distributor may continue to use the Product
after termination of this Agreement to provide customer support services set
forth in Section 3(d) above, provided, however, that Distributor is not in
breach or default of payment, pursuant to Sections 5 and 6(a) above.

         (d)      No Liability for Termination. Except as expressly required by
law, in the event of termination of this Agreement by either party in accordance
with any of the provisions of this Agreement, neither party shall be liable to
the other, because of such termination, for compensation, reimbursement or
damages on account of the loss of prospective profits or anticipated sales or on
account of expenditures, inventory, investments, leases or commitments in
connection with the business or goodwill of Supplier or Distributor. Termination
shall not, however, relieve either party of obligations incurred prior to the
termination.

         (e)      Survival. The following provisions shall survive expiration or
any termination of this Agreement: Sections 8, 9(c)-(f), 10, 11, 13, 15 and the
last sentence in Section 12(b).

         (f)      Return of Materials. All Software, Documentation, Product,
trademarks, marks, trade names, patents, copyrights, designs, drawings, formulas
or other data, photographs, samples, literature, and sales and promotional aids
of every kind shall remain the property of Supplier. Within thirty (30) days
after the effective date of termination of this Agreement, Distributor shall at
Supplier's option destroy all tangible items bearing, containing, or contained
in, any of the foregoing, in its possession or control and provide written
certification of such destruction, or prepare such tangible items for shipment
to Supplier or Supplier's designee, as Supplier may direct, at Supplier's
expense. Distributor shall not make or retain any copies of any Confidential
Information (as defined in Section 10, below), which may have been entrusted to
it.

                                       8

<PAGE>

10.      CONFIDENTIALITY AND PROPRIETARY RIGHTS:

         (a)      Confidential Information. The term "Confidential Information"
shall mean any information disclosed by one party to the other party pursuant to
this Agreement or either party's activities hereunder, including, without
limitation, technical data, product design and development, sales information,
quantity and kind of products licensed, prices and methods of pricing, marketing
techniques and plans, product returns, unannounced products, product and process
information, and any other information which, if disclosed to others, might be
competitively detrimental to either party.

         (b)      Confidentiality. Each party shall treat as confidential all
Confidential Information of the other party, shall not use such Confidential
Information except to exercise its rights and perform its obligations under this
Agreement herein, and shall not disclose such Confidential Information to any
third party, except as expressly authorized in Section 10(c) below. Without
limiting the foregoing, each of the parties shall use at least the same degree
of care it uses to prevent the disclosure of its own confidential information of
like importance, to prevent the disclosure of Confidential Information of the
other party. Each party shall promptly notify the other party of any actual or
suspected misuse or unauthorized disclosure of the other party's Confidential
Information.

         (c)      Exceptions. Confidential Information excludes information
that: (i) was in the public domain at the time it was disclosed or has become in
the public domain through no fault of the receiving party; (ii) was known to the
receiving party, without restriction, at the time of disclosure, as demonstrated
by files in existence at the time of disclosure; (iii) is disclosed with the
prior written approval of the disclosing party; (iv) was independently developed
by the receiving party without any use of the Confidential Information; (v)
becomes known to the receiving party, without restriction, from a source other
than the disclosing party, without breach of this Agreement, by the receiving
party; or (vi) is disclosed generally to third parties by the disclosing party
without restrictions similar to those contained in this Agreement. The receiving
party may disclose the other party's Confidential Information to the extent such
disclosure is required by order or requirement of a court, administrative
agency, or other governmental body.

         (d)      Proprietary Rights. Distributor agrees that Supplier retains
all of its right, title and interest in and to all patent rights, trademarks,
trade names, inventions, copyrights, know-how and trade secrets relating to the
Product, including modifications, translations, and/or localization of the
Product performed by Distributor, or the product lines that include the Product,
and the design, manufacture, operation or service of the Product. To the extent
that the Product contains or incorporates intellectual property of parties other
than Supplier, Distributor agrees to respect such third party rights and abide
by any terms and conditions contingent upon grant and use of such rights, and
that such third parties retain any such rights, if applicable. The use by
Distributor of any of these property rights is authorized only for the purposes
herein set forth and upon termination of this Agreement for any reason such
authorization will cease, subject to Section 9 (d). Distributor shall not (and
shall require that its Customers do not) remove, alter, cover or obfuscate any
copyright notices or other proprietary rights notices placed or embedded by

                                       9

<PAGE>

Supplier on or in any Product. Distributor hereby irrevocably assigns and agrees
to assign to Supplier, without additional consideration, all right, title and
interest in and to the Localized Product, whether currently existing or created
or developed later, including, without limitation, all copyrights, trademarks,
trade secrets, patents, industrial rights and all other intellectual property
and proprietary rights related thereto, whether existing now or in the future,
effective immediately upon the inception, conception, creation or development
thereof. Distributor shall (a) disclose promptly to Supplier the Localized
Product and any new version thereof, and (b) whether during or after the term of
this Agreement, execute such written instruments and do such other acts as may
be necessary in the opinion of Supplier to obtain a patent, register a copyright
or otherwise evidence or enforce Supplier's rights in and to such Localized
Product (and Distributor hereby irrevocably appoints Supplier and any of its
officers as its attorney in fact to undertake such acts in its name). To the
extent, if any, that Distributor retains any right, title or interest in or to
the Localized Product, Distributor hereby grants to the Supplier a perpetual,
irrevocable, fully paid-up, transferable, sublicensable, worldwide right and
license (a) to use, reproduce, distribute, display and perform (whether publicly
or otherwise), prepare derivative works of and otherwise modify, make, sell,
offer to sell, import and otherwise use and exploit (and have others exercise
such rights on behalf of Supplier) all or any portion of such Localized Product,
in any form or media (now known or later developed); (b) to modify all or any
portion of such Localized Product, including, without limitation, the making of
additions to or deletions from such Localized Product, regardless of the medium
(now or hereafter known) into which such Localized Product may be modified and
regardless of the effect of such modifications on the integrity of such
Localized Product; and (c) to identify Distributor, or not to identify
Distributor, as one or more authors of or contributors to such Localized Product
or any portion thereof, whether or not such Localized Product or any portion
thereof have been modified. Distributor further waives any "moral" rights or
other rights with respect to attribution of authorship or integrity of such
Localized Product Distributor may have under any applicable law, whether under
copyright, trademark, unfair competition, defamation, right of privacy,
contract, tort or other legal theory.

11.      PATENT/COPYRIGHT/TRADEMARK WARRANTY AND INDEMNIFICATION

         (a)      Indemnity. Provided Distributor adheres to the Branding
Guidelines set forth by Supplier, Supplier represents and warrants that the
Product or any part thereof, does not violate or infringe any patent, copyright,
trademark, trade secret or other proprietary right of any third party. Supplier
agrees, at its own expense, to defend any third party claim, suit or proceeding
(collectively, "Action") brought against Distributor alleging the Product
infringes any patent, copyright, trademark, trade secret or other proprietary
right of Supplier in existence as of the Effective Date, subject to the
limitations hereinafter set forth. Supplier agrees to pay, subject to the
limitations hereinafter set forth, any final judgment entered against
Distributor on such issue in any such Action. Distributor shall notify Supplier
promptly in writing of such Action filed against Distributor and shall have the
right, but not the obligation, to participate in the defense of any such suit or
proceeding at Distributor's expense. Distributor will provide

                                       10

<PAGE>

the Supplier with proper and full information and its reasonable assistance in
the defense of any claim, suit or proceeding, at Supplier's expense. If it is
adjudicatively determined that the Product, or any part thereof, infringe any
patent, copyright or trademark, or if the sale or use of the Product, or any
part thereof, is, as a result, enjoined, or in the event of any pending or
threatened claim of infringement, then Supplier may, at its election, option,
and expense: (i) procure for Distributor the right under such patent, copyright
or trademark to sell or use, as appropriate, the Product or such part thereof;
(ii) modify the Product or part thereof; or (iii) cease distribution of the
Product, or part thereof, and refund any payments (including any minimum product
purchases under Section 6) paid by Distributor for such Product.

         (b)      Modifications to Branding Guidelines. Supplier reserves the
right to modify the Branding Guidelines from time to time, and shall give
Distributor notice of any such modifications. Within ninety (90) days of receipt
of notice of any modifications to the Branding Guidelines, Distributor shall act
to assure that all Product, Product marketing materials or other promotional
matter complies with the Branding Guidelines. If at any time Distributor fails
to follow the Branding Guidelines, Supplier shall be relieved of any obligation
set forth in Section 10 relating to or resulting from such failure.

12.      USE OF TRADEMARKS/TRADE NAMES:

         (a)      Trademarks. During the term of this Agreement, Distributor
shall have the right to indicate to the public that it is an authorized
distributor of Supplier's Product and to advertise such Product under the
trademarks, marks, and trade names of Supplier and in the promotion and
distribution of the Product; provided, however, that upon thirty (30) days prior
written notice to Distributor, Supplier may substitute alternative marks for any
or all of such Supplier's trademarks used by Distributor. All representations of
Supplier's trademarks that Distributor intends to use shall first be submitted
to Supplier for approval (which shall not be unreasonably withheld) of design,
color and other details or shall be exact copies of those used by Supplier. In
addition, Distributor shall fully comply with all reasonable guidelines, if any,
communicated by Supplier concerning the use of Supplier's trademarks.

         (b)      Use. Distributor shall not alter or remove any of Supplier's
trademarks affixed to the Product by Supplier. Except as set forth in this
Section 12, nothing contained in this Agreement shall grant or shall be deemed
to grant to Distributor any right, title or interest in or to Supplier's
trademarks. All uses of Supplier's trademarks will inure solely to Supplier and
Distributor shall obtain no rights with respect to any of Supplier's trademarks,
other than the right to distribute Product as set forth herein, and Distributor
irrevocably assigns to Supplier all such right, title and interest, if any, in
any of Supplier's trademarks. At no time during or after the term of this
Agreement shall Distributor challenge or assist others to challenge Supplier's
trademarks (except to the extent expressly prohibited by applicable law) or the
registration thereof or attempt to register any trademarks, marks or trade names
confusingly similar to those of Supplier. Upon termination of this Agreement,
Distributor shall immediately cease to use all Supplier's trademarks (other than
for any remaining inventory to be sold during the "Wind Down Period").

                                       11

<PAGE>

13.      LIMITATION OF LIABILITY: EXCEPT FOR DISTRIBUTOR'S OBLIGATIONS UNDER
SECTION 15(C), IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR LOST PROFITS, COST
OF PROCUREMENT OF SUBSTITUTE GOODS, OR ANY OTHER SPECIAL, RELIANCE, INCIDENTAL,
OR CONSEQUENTIAL DAMAGES, HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY
WHETHER BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE. THE
FOREGOING LIMITATIONS SHALL APPLY REGARDLESS OF WHETHER SUCH PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING THE FAILURE OF
ESSENTIAL PURPOSE OF ANY LIMITED REMEDY STATED HEREIN. NEITHER PARTY'S LIABILITY
ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL EXCEED THE AGGREGATE AMOUNTS
PAID BY DISTRIBUTOR TO SUPPLIER HEREUNDER. NOTWITHSTANDING THE FOREGOING, THIS
SECTION 13 SHALL NOT BE APPLICABLE WITH REGARD TO ANY BREACH OR LIABILITY UNDER
SECTIONS 10 AND 11.

14.      COMPLIANCE WITH LAWS:

         (a)      Export Control. Distributor understands and acknowledges that
Supplier is subject to regulation by agencies of the United States Government,
including, but not limited to, the U.S. Department of Commerce, which prohibit
export or diversion of certain Product and technology to certain countries. Any
and all obligations of Supplier to provide the Product, as well as any other
technical information or assistance shall be subject in all respects to such
United States laws and regulations as shall from time to time govern the license
and delivery of technology and Product abroad by persons subject to the
jurisdiction of the United States, including the Export Administration Act of
1979, as amended, any successor legislation, and the Export Administration
Regulations issued by the Department of Commerce, Bureau of Export
Administration. Distributor agrees to cooperate with Supplier including without
limitation, providing required documentation, in order to obtain export licenses
or exemptions therefrom. Distributor warrants that it will comply with the
Export Administration Regulations and other United States laws and regulations
governing exports in effect from time to time. Distributor further agrees not to
resell Product to any organization, public or private, which engages in the
research or production of military devices, armaments, or any instruments of
warfare, including biological, chemical and nuclear warfare.

         (b)      Governmental Approvals. Distributor represents and warrants
that it has obtained all required approvals of the government within the
Territory in connection with this Agreement and that the provisions of this
Agreement and the rights and obligations of the parties hereunder, are
enforceable under the laws within the Territory. Supplier represents and
warrants that it has obtained all required approvals of the United States
government in connection with this Agreement and that the provisions of this
Agreement and the rights and obligations of the parties hereunder, are
enforceable under the laws of the United States of America.

15.      MISCELLANEOUS PROVISIONS:

                                       12

<PAGE>

         (a)      Independent Contractors. The relationship of Supplier and
Distributor established by this Agreement is that of independent contractors,
and neither party is an employee, agent, partner or joint venturer of the other.

         (b)      Assignment. This Agreement will be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns;
provided, however, that neither party shall assign any of its rights,
obligations, or privileges (by operation of law or otherwise) hereunder without
the prior written consent of the other party which consent shall not be withheld
unreasonably.

         (c)      Indemnity. Except for warranty claims for which Supplier is
liable under Section 8 and infringement claims covered by Section 11,
Distributor agrees to indemnify and hold Supplier harmless against any cost,
loss, liability or expense (including attorneys' fees) arising out of third
party claims against Supplier relating to Distributor's use and distribution of
the Product.

         (d)      No Implied Waivers. The failure of either party at any time to
require performance by the other of any provision hereof shall not affect the
right of such party to require performance at any time thereafter, nor shall the
waiver of either party of a breach of any provision hereof be taken or held to
be a waiver of a provision itself.

         (e)      Severability. If any provision of this Agreement is held to be
invalid by a court of competent jurisdiction, then the remaining provisions will
nevertheless remain in full force and effect. The parties agree to renegotiate
in good faith those provisions so held to be invalid to be valid, enforceable
provisions which provisions shall reflect as closely as possible the original
intent of the parties, and further agree to be bound by the mutually agreed
substitute provision.

         (f)      Force Majeure. Except for payment of monies, neither party
shall be liable for failure to fulfill its obligations under this Agreement or
for delays in delivery due to causes beyond its reasonable control, including,
but not limited to, acts of God(s), acts of terror, man-made or natural
disasters, earthquakes, fire, riots, flood, material shortages, strikes, delays
in transportation or inability to obtain labor or materials through its regular
sources. The time for performance of any such obligation shall be extended for
the time period lost by reason of the delay.

         (g)      Conflicting Terms. The parties agree that the terms and
conditions of this Agreement shall prevail, notwithstanding contrary or
additional terms, in any purchase order, sales acknowledgment, confirmation or
any other document issued by either party effecting the purchase and/or sale of
Product.

                                       13

<PAGE>

         (h)      Authority. The parties executing this Agreement on behalf of
Supplier and Distributor represent and warrant that they have the authority from
their respective governing bodies to enter into this Agreement and to bind their
respective companies to all the terms and conditions of this Agreement.

         (i)      English Language. English shall be used as the authoritative
text of this Agreement, regardless of the existence of counterparts translated
into another language, and all communications, arbitrations, and other
adjudications hereunder shall be made and conducted in English.

         (j)      Recitals. The parties agree that each and every recital of
this Agreement shall be a covenant and agreement as well as a recital of this
Agreement.

         (k)      Headings. Headings of paragraphs herein are inserted for
convenience of reference only and shall not affect the construction or
interpretation of this Agreement.

         (l)      Notice. Any notice required or permitted to be given under
this Agreement shall be delivered (i) by hand, (ii) by registered or certified
mail, postage prepaid, return receipt requested, to the address of the other
party provided immediately below, or to such other address as a party may
designate by written notice in accordance with this Section 15(i), (iii) by
overnight courier with proof of delivery, (iv) by email to an officer of such
party, with confirming return email, or (v) by fax with confirming letter mailed
under the conditions described in (ii) above.

                     "Supplier"
                              Lindows, Inc.
                              9333 Genessee Ave., Suite 300
                              San Diego, CA 92121
                              USA
                              FAX: +1 (858) 587-8095

                     "Distributor"
                              Questar Srl
                              Via Maglio del Lotto 2
                              24126 Bergamo BG
                              Italy
                              FAX: +39 (035) 420-1498

         (m)      Entire Agreement. This Agreement contains the entire
understanding of the parties with respect to the subject matter hereof and
supersedes all prior agreements relating thereto, written or oral, between the
parties. Amendments to this Agreement must be in writing, signed by the duly
authorized officers of the parties. This Agreement may be executed in
counterparts and delivered by facsimile, all of which shall together be
effective as a single original.

         (n)      Governing Law. This Agreement is to be construed in accordance
with and governed by the internal laws of the State of California (as permitted
by Section 1646.5 of the California Civil Code or any similar successor
provision) without giving effect to any choice of law rule that would cause the
application of the laws of any

                                       14

<PAGE>

jurisdiction other than the internal laws of the State of California to the
rights and duties of the parties. This Agreement shall not be governed by the
U.N. Convention on Contracts for the International Sale of Goods, the
application of which is expressly excluded. Nothing in this Agreement is
intended or will be construed to give any person (other than Licensor and
Licensee) any legal or equitable right, remedy or claim under this Agreement or
any provision hereof.

         (o)      Attorney's Fees. In the event a dispute arises regarding this
Agreement, the prevailing party shall be entitled to its reasonable attorney's
fees and expenses incurred in addition to any other relief to which it is
entitled.

         (p)      Further Assurances. Both parties agree to execute such
additional documents and perform such acts as are reasonably necessary to
effectuate the intent of this Agreement.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
effective as of the Effective Date.

"Supplier"                                 "Distributor"
LINDOWS, INC.                              QUESTAR SRL

By: /s/ Kevin Carmony                      By: /s/ David G. Orban
    ------------------------                   ----------------------------
Name: Kevin Carmony                        Name: David G. Orban

Title: Pres./COO                           Title: CEO

                                       15

<PAGE>

                                   EXHIBIT "A"

                                    "PRODUCT"

SOFTWARE - (IN OBJECT CODE FORM ONLY)

         LindowsOS (OEM Version)
         LindowsOS (Retail Version)
         LindowsOS (Developer Version)
         LindowsOffice with StarSuite
         LindowsLive (CD)
         Lindows Laptop Edition

SERVICES

         LindowsPlus Membership
         VirusSafe
         SurfSafe

DOCUMENTATION

                                       16

<PAGE>

                                    EXHIBIT B

                      LindowsOS End User License Agreement

BETWEEN LINDOWS, INC. ("LINDOWS") AND EITHER (1) A FAMILY END-USER ("FAMILY") --
AN INDIVIDUAL END-USER AGREEING TO A FAMILY EDITION LICENSE FOR PERSONAL USE AND
USE BY MEMBERS OF SUCH INDIVIDUAL'S HOUSEHOLD OR (2) A BUSINESS END-USER
("BUSINESS") AGREEING TO A BUSINESS EDITION LICENSE FOR AN AGREED UPON NUMBER OF
SEATS OR NUMBER OF SIMULTANEOUS USERS, BUT NOT BOTH. THE FAMILY OR THE BUSINESS
("YOU" OR "YOUR"), AS APPROPRIATE, AGREES TO CAREFULLY READ THIS LICENSE
AGREEMENT (THIS "AGREEMENT") BEFORE INSTALLING OR USING THE LINDOWSOS SOFTWARE
PRODUCT (INCLUDING ALL ACCOMPANYING DOCUMENTATION, ENHANCEMENTS, UPGRADES AND
EXTENSIONS THERETO "LINDOWSOS"). INSTALLING OR OTHERWISE USING THIS PRODUCT
INDICATES YOUR ACKNOWLEDGMENT THAT YOU HAVE READ THIS AGREEMENT AND AGREE TO BE
BOUND BY AND COMPLY WITH ITS TERMS. IF YOU DO NOT AGREE TO THIS AGREEMENT,
PROMPTLY RETURN LINDOWSOS (WITHOUT INSTALLING IT) TO PLACE OF PURCHASE AND ANY
MONEY YOU HAVE PAID FOR LINDOWSOS WILL BE RETURNED.

SELECTING THE "I ACCEPT THIS AGREEMENT" OPTION FURTHER CONFIRMS YOUR ACCEPTANCE
OF ALL TERMS CONTAINED IN THIS AGREEMENT.

1. LICENSE.

1.1 License.

a. Family License: If You are a Family or Individual, You agree to the following
terms of this Section 1.1.a: LindowsOS is a modular operating system made up of
individual software components (each individual software component and all
accompanying documentation, enhancements, upgrades and extensions thereto are
referred to herein as "Software Program(s)") that were created either by Lindows
or various individuals and entities ("Third Parties"). Subject to the terms and
conditions of this Agreement, Lindows grants You a non-exclusive license to use
the object code form of LindowsOS for Your personal use in accordance with the
accompanying documentation. You may download and use LindowsOS on multiple
computers owned, leased or rented by You; provided, however, You and members of
Your Household (a "Household" consists of those individuals that currently
reside with You) are the only individuals with the right to use Your licensed
copy(ies) of LindowsOS. For example, if You have a desktop computer at home and
a laptop computer which You travel with, You may download a copy of LindowsOS on
both machines for the personal use of members of Your Household and You. You
agree that You are responsible for the members of Your Household's compliance
with the terms of this Agreement as though they were You and had agreed to all
terms and conditions herein. Except as otherwise expressly set forth herein, You
may not (and shall not allow any member of Your Household or any other Third
Party to) (i) remove any product identification or other notices; (ii) copy
LindowsOS (other than for back-up purposes, for Your personal use on Your
multiple machines as set forth in this Section 1.1.a, or for archival purposes);
(iii) provide, lease, lend, use for timesharing or service bureau purposes or
otherwise use or allow others to use LindowsOS to or for the benefit of Third
Parties, or (iv) modify LindowsOS or incorporate LindowsOS into or with other
software, except as may be provided for in this agreement.

b. Business License:If You are a Business, You agree to the following terms of
this Section 1.1.b: LindowsOS is a modular operating system made up of
individual software components (each individual software component and all
accompanying documentation, enhancements, upgrades and extensions thereto are
referred to herein as "Software Program(s)") that were created either by Lindows
or various individuals and entities ("Third Parties"). Subject to the terms and
conditions of this Agreement, Lindows grants You a non-exclusive license for
Your authorized users to use the object code form of LindowsOS for Your internal
business purposes on Business owned, rented or leased computers in accordance
with the accompanying documentation for: (1) solely up to the number of
Simultaneous Users purchased by You as set forth at
www.lindows.com/businesslicense, regardless of the number of Business owned,
rented or leased computers that You download LindowsOS on or (2) solely up to
the number of Seats purchased by You as set forth at
www.lindows.com/businesslicense. "Simultaneous Users" refers to authorized users
that may use LindowsOS at the same time. A "Seat" is a single computer
processing unit or "CPU" (including computers with redundant processing
systems), whether LindowsOS is installed directly on that CPU or is served from
a centralized server. Except as otherwise expressly set forth herein, You and
Your authorized users may not (and shall not allow any Third Party or any of
Your authorized users to) (i) remove any product identification or other
notices; (ii) copy LindowsOS (other than for back-up purposes, for use on
multiple Seats as set forth in this Section 1.1.b, or for archival purposes);
(iii) provide, lease, lend, use for timesharing or service bureau purposes or
otherwise use or allow others to use LindowsOS to or for the benefit of Third
Parties, or (iv) modify LindowsOS or incorporate LindowsOS into or with other
software, except as may be provided for in this agreement. You shall keep a
current record of the location of each copy of LindowsOS You make.

1.2 Third Party Agreements. Many of the Software Programs included in LindowsOS
are distributed under the terms of agreements with Third Parties ("Third Party
Agreements") which may expand or limit Your rights to use certain Software
Programs as set forth in Section 1.1. Certain Software Programs may be licensed
(or sublicensed) to You under the GNU General Public License and other similar
open source license agreements ("OSLAs") which, among other rights, permit You
to copy, modify and redistribute certain Software Programs, or portions thereof,
and have access to the source code of certain Software Programs, or portions
thereof. In addition, certain Software

                                       17

<PAGE>

Programs, or portions thereof, may be licensed (or sublicensed) to You under
terms stricter than those set forth in Section 1.1. Please review visit
www.lindows.com/licensing for the on-line documentation that accompanies certain
Software Programs, or portions thereof, for the applicable Third Party
Agreements. To the extent any Third Party Agreements require that Lindows
provide rights to use, copy or modify a Software Program that are broader than
the rights granted in Section 1.1, then such rights shall take precedence over
the rights and restrictions granted in this Agreement solely for such Software
Programs.

1.3 Violation of Licensing Terms. Any violation by You of the applicable license
terms set forth in Section 1.1 or Section 1.2, as appropriate, shall immediately
terminate Your license to use LindowsOS. If You do not agree to comply with and
be bound by the terms of the applicable license agreement(s), do not install,
distribute or otherwise use LindowsOS.

2. PROPRIETARY RIGHTS.

All right, title and interest in LindowsOS, including source code,
documentation, appearance, structure and organization, are held by Lindows
and/or its licensors and are protected by copyright and other laws. You may not
copy or otherwise use LindowsOS, in whole or in part, except as expressly
permitted in this Agreement. Title to LindowsOS, or to any copy, modification or
merged portion of any of the Software Programs, shall at all times remain with
Lindows and/or its licensors, subject to the terms of the applicable Third Party
Agreement(s) to the Software Programs under consideration.

3. TRADEMARKS

"Lindows.com" and "LindowsOS" are registered trademarks of Lindows.com, Inc.,
All Rights Reserved. "Linux" is a registered trademark of Linus Torvalds. All
other trademarks are the property of their respective owners. While certain
Third Party Agreements described in Section 1.2 may allow You to copy, modify
and distribute certain Software Programs, they do not permit You to distribute
the Software Programs utilizing Lindows.com's trademarks.

4. LIMITED WARRANTY.

IF LINDOWSOS WAS DISTRIBUTED TO YOU BY LINDOWS OR A LINDOWS AUTHORIZED
DISTRIBUTOR ON CD-ROM OR OTHER TANGIBLE STORAGE MEDIA, LINDOWS WARRANTS THAT THE
STORAGE MEDIA IN THIS PRODUCT WILL BE FREE FROM DEFECT IN MATERIALS AND
WORKMANSHIP UNDER NORMAL USE FOR A PERIOD OF THIRTY (30) DAYS FROM THE DATE THAT
YOU ACQUIRE IT. IF SUCH A DEFECT OCCURS, RETURN THE MEDIA TO LINDOWS AT,
LINDOWS.COM, INC., 9333 GENESEE AVE., SAN DIEGO, CA 92121, AND LINDOWS WILL
REPLACE IT FREE OF CHARGE. THIS REMEDY IS YOUR EXCLUSIVE REMEDY FOR BREACH OF
THIS WARRANTY.

EXCEPT WHERE SPECIFICALLY STATED OTHERWISE IN THIS AGREEMENT, LINDOWSOS,
INCLUDING WITHOUT LIMITATION EACH SOFTWARE PROGRAM, IS PROVIDED TO YOU ON AN "AS
IS" BASIS, WITHOUT ANY OTHER WARRANTIES OR CONDITIONS AND LINDOWS EXPRESSLY
DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO,
WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, OR THOSE ARISING BY LAW, STATUTE, USAGE OF TRADE, COURSE OF DEALING OR
OTHERWISE. ANY WARRANTY OR REMEDY PROVIDED UNDER THIS AGREEMENT EXTENDS ONLY TO
THE PARTY WHO PURCHASES A LICENSE TO LINDOWSOS FROM LINDOWS OR A LINDOWS
AUTHORIZED DISTRIBUTOR.

Some jurisdictions do not allow the exclusion of implied warranties, so the
above exclusion may not apply to You. You may have other rights which vary from
jurisdiction to jurisdiction.

5. LIMITATION OF LIABILITY.

THE ENTIRE RISK AS TO THE RESULTS AND PERFORMANCE OF LINDOWSOS IS ASSUMED BY
YOU. NEITHER LINDOWS NOR ITS APPOINTED DEALERS, SUPPLIERS OR LICENSEES SHALL
HAVE ANY LIABILITY TO YOU OR ANY OTHER PERSON OR ENTITY FOR ANY INDIRECT,
INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES WHATSOEVER, INCLUDING, BUT NOT
LIMITED TO, LOSS OF REVENUE OR PROFIT, LOST OR DAMAGED DATA OR OTHER COMMERCIAL
OR ECONOMIC LOSS, EVEN IF LINDOWS OR SUCH DEALER, SUPPLIER OR LICENSEE HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, OR THEY ARE FORESEEABLE. OUR MAXIMUM
AGGREGATE LIABILITY TO YOU AND THAT OF OUR DEALERS AND SUPPLIERS FOR DIRECT
DAMAGES SHALL NOT EXCEED THE AMOUNT PAID BY YOU FOR LINDOWSOS. THE LIMITATIONS
IN THIS SECTION SHALL APPLY WHETHER OR NOT THE ALLEGED BREACH OR DEFAULT IS A
BREACH OF A FUNDAMENTAL CONDITION OR TERM OR A FUNDAMENTAL BREACH.

Some jurisdictions do not allow the limitation or exclusion of liability for
incidental or consequential damage, so the above limitation may not apply to
You.

6. DISTRIBUTION.

If You are permitted to redistribute any Software Programs under an appropriate
OSLA, it is Your responsibility to comply with all export laws, rules and
regulations in the jurisdictions where the Software Programs are exported from,
exported to, or re-exported from time to time.

7. TERM.

                                       18

<PAGE>

This Agreement is effective until terminated. You may terminate this license at
any time by destroying all copies of LindowsOS. The Agreement will terminate
automatically if You fail to comply with any term or condition of the Agreement.
The provisions of Sections 1.2 (regarding OSLAs that remain in force) and 2 - 8,
shall survive termination.

8. GENERAL.

This Agreement, together with the Third Party Agreements, is the entire
agreement regarding Your use of LindowsOS, superseding any other agreement or
discussions, oral or written, and may not be changed except by a signed
agreement. Except as set forth in the appropriate OSLA, You may not assign Your
rights or obligations under this Agreement without the prior consent of Lindows.
This Agreement shall be governed by and construed in accordance with the laws of
the State of California, excluding that body of law applicable to choice of law
and excluding the United Nations Convention on Contracts for the International
Sale of Goods and any legislation implementing such Convention, if otherwise
applicable. The sole jurisdiction and venue for actions related to the subject
matter hereof shall be the state and federal courts located in San Diego County.
In any action to enforce this Agreement, the prevailing party shall be entitled
to costs and attorneys' fees. If any provision of this Agreement is declared by
a Court of competent jurisdiction to be invalid, illegal, or unenforceable, such
a provision shall be severed from the Agreement and the other provisions shall
remain in full force and effect. At no time shall a failure or delay in
enforcing any provisions, exercising any option or requiring performance, be
construed to be a waiver.

                                       19

<PAGE>

                                   EXHIBIT "C"

                           LINDOWS BRANDING GUIDELINES

BRANDING FEATURES

To be provided on request.

TRADEMARK NOTICES

The Branding Features are trademarks and service marks of Lindows. The Branding
Features shall be accompanied by the superscript "TM" or "(R)" symbol, as
specified by Lindows, which must appear to the immediate right of the Branding
Features. The footnote "LindowsOS is the trademark of Lindows, Inc." or "Lindows
is the trademark of Lindows, Inc.", as applicable, shall accompany each use of
the Branding Features (or, if a Branding Feature is used multiple times in a
document, screen or packaging, such notice shall accompany the first prominent
use in such document, screen or packaging).

USING THE BRANDING FEATURES

Distributor may only use the Branding Features as an indication that the
Software is being offered to end users via distribution pursuant to this
Agreement. Distributor may not use the Branding Features in such a way as to
suggest that the Branding Features may also apply to any hardware or software
other than the Software. When referring to Lindows, Inc., Distributor shall use
the name "Lindows." When referring to the Software, Licensee shall use the
trademark "LindowsOS."

SIZING AND PLACEMENT REQUIREMENTS

The digitized, machine-readable file for the artwork of the Branding Features
shall be delivered as provided above in this Exhibit C. Distributor shall not
alter this file or the Branding Features in any way, including, without
limitation, changing the color of any of the logos or artwork, separating any
words in the Branding Features from the remainder of the Branding Features or
replacing words with any other words.

Distributor shall not combine the Branding Features with any other feature,
including, without limitation, other marks, words, graphics, photos, slogans,
numbers, design features or symbols.

The Branding Features shall not be larger or more prominent than the trademark,
logo or any Distributor trade name that appears on the same packaging,
documentation, advertising or other materials. The Branding Features shall not
be smaller or less prominent than any name, trademark or logo of any third party
that appears on the same packaging, documentation, advertising or other
materials.

                                       20<PAGE>

                                                                   Exhibit 10.14

                                     *** CERTAIN CONFIDENTIAL INFORMATION
                                     CONTAINED IN THIS DOCUMENT
                                     (INDICATED BY ASTERISKS) HAS BEEN
                                     OMITTED AND FILED SEPARATELY WITH
                                     THE SECURITIES AND EXCHANGE
                                     COMMISSION PURSUANT TO A REQUEST FOR
                                     CONFIDENTIAL TREATMENT UNDER 17
                                     C.F.R. SECTIONS 200.80(B)(4), 200.803
                                     AND 230.406

                   TERRITORIAL SOFTWARE DISTRIBUTION AGREEMENT

This Territorial Software Distribution Agreement ("Agreement") is entered into
this 14th day of April, 2004 (the "Effective Date"), by and between Lindows,
Inc., a Delaware corporation ("Supplier") and livedoor Co., Ltd., a Japanese
corporation ("Distributor").

WHEREAS, Supplier and Distributor previously entered into a Software
Distribution Agreement dated March 17, 2003 (the "Previous Agreement"); and

WHEREAS, the Previous Agreement shall expire on August 29, 2004, and Supplier
and Distributor desire to enter into this Agreement to continue the relationship
of the parties, whereby Distributor shall remain Supplier's exclusive
distributor of the Product in the Territory during the Licensed Term; and

WHEREAS, Supplier and Distributor understand and agree that this Agreement shall
replace and supersede the Previous Agreement and all provisions thereof, and all
other agreements between the parties, written or oral.

NOW, THEREFORE, the parties hereby agree as follows:

1.       DEFINITIONS:

         (a)      "Branding Guidelines" means Lindows' proprietary trade names,
trade dress, service marks, trademarks, logos, and indicia of origin and other
distinctive branding features as specified in the Lindows Branding Guidelines
attached hereto as Exhibit "C."

         (b)      "Customer" shall mean retail and end user purchasers of the
Product within the Territory.

         (c)      "Documentation" shall mean the end user manuals relating to
the Software and services and related materials provided by Supplier to
Distributor hereunder.

                                       1

<PAGE>

         (d)      "Gold Master" shall mean a master disk image of the Software
as made available for delivery to Licensee via electronic download at the
Builder website http://www.lindows.com/builder or any successor website thereto
or on CD-ROM or other media.

         (e)      "OEM Customer" shall mean computer builders, system
integrators of computers, and value-added resellers of computers pre-installing
LindowsOS on complete computer systems actually within the Territory and who
execute a valid Builder Agreement located at http://www.lindows.com/licenses
with Supplier.

         (f)      "Product" shall mean the Software and Documentation listed on
Exhibit "A" attached hereto, including any modification, improvements,
alterations, translations, localizations, innovations, or changes of any kind
performed on the Software or Documentation by Distributor.

         (g)      "Services" shall mean the services set forth in Exhibit "A"
attached hereto.

         (h)      "Software" shall mean the computer program(s) listed in
Exhibit "A" in machine executable object code format only.

         (i)      "Territory" shall mean the Nation of Japan.

         (j)      "Update" shall mean versions of the Product, including version
patches, subsequently released to the public for the purpose of correcting
errors and fixing software bugs, which shall be given by Supplier to
Distributor, pursuant to the terms set forth in Section 6(c). "Updates" does not
include subsequent versions of the Product that contain new features or
functionality, or which are considered a new software product.

2.       APPOINTMENT: In consideration of the ***, Supplier hereby appoints
Distributor, and Distributor hereby accepts the appointment, as Supplier's ***
distributor in the Territory for the Licensed Term (as defined in Section 9
below) to distribute Localized Product (as defined in Section 2(d) below) on
CD-ROM disks and repackaged as set forth in Section 2(a) below directly to
Customers in the Territory. Subject to Section 2(j) below, the restrictions set
forth in Section (i) below, and the other terms and conditions of this
Agreement, Supplier hereby grants to Distributor a non-transferable, personal,
non-sublicensable, except as expressly set forth in this Section below, without
the right to have Distributor's rights exercised on behalf of Distributor by a
third party, limited right and license in the Territory during the Licensed Term
of this Agreement to:

         (a)      Copy and install the Software portion of the Localized Product
(as defined in Section 2(d) below) in object code format only onto copies of
CD-ROM disks and repackage such CD-ROM disks and the Documentation portion of
the Localized Product and with an end user license agreement (the "End User
License Agreement") with terms substantially the same as those set forth in
Exhibit "B," both for distribution to Customers for retail sale within the
Territory;

                                       2

<PAGE>

         (b)      Distribute the Localized Product to Customers with and
pursuant to the End User License Agreement directly through Distributor's retail
locations within the Territory and Distributor's online retail site within the
Territory.

         (c)      Set up OEM Customers for the distribution of Software,
Documentation and Localized Product pre-installed on the respective OEM
Customer's computer system products. Specifically this appointment shall be
non-exclusive, Supplier's OEM Customers shall be entitled to sell computer
systems with the Software and/or Documentation installed within the Territory,
but Supplier will not engage in securing OEM Agreements within the Territory,
unless in coordination with, and with compensation to Distributor as provided
herein. Distributor shall distribute the Software, Documentation and Localized
Product only to OEM Customers who have executed a valid Builder Agreement with
Supplier, only for installation in the Territory by such OEM Customer on such
OEM Customer's computer systems, only for distribution pre-installed on such OEM
Customer's computer systems within the Territory, and only for distribution to
Customers with and pursuant to the End User License Agreement.

         (d)      Translate and localize the English version of the Product into
appropriate Japanese language using the pre-existing translation applications
available to create a localized Product (the "Localized Product"). Supplier
reserves the right to terminate this Agreement in its sole and complete
discretion in the event that the Localized Product, does not operate effectively
or provide all defined functions, or is not accurate. Any translation and
localization problems or defects which do not entail Software malfunctioning,
operating defects, or inaccuracies shall not be deemed as a failure of
Supplier's reasonable requirements and shall not justify the termination of this
Agreement. Distributor shall have forty-five (45) days to cure to Supplier's
satisfaction after receiving written notification by registered letter of
Supplier's intention to terminate this Agreement, which notification shall
contain a detailed description of the grounds and requirements which are deemed
not to be satisfied. Absent the above-mentioned notice and cure period, any
termination shall be void and to not effect.

         (e)      Sublicense to third party distributors in the Territory
Distributor's rights under Sections 2(b) and 2(e) only, and to third party
retailers in the Territory Distributor's rights under Section 2(b) only, both
pursuant to an agreement consistent with and substantially the same as this
Agreement (except such agreement shall not include the rights set forth in
Sections 2(c), 2(d) and 2(f)).

         (f)      Sublicense the Localized Product to Customers pursuant to the
End User License Agreement.

         (g)      Use the Product internally solely for the purpose of providing
customer support services, demonstrations and marketing purposes.

         (h)      For clarity, Distributor's rights under Section 2(b) shall
include the right for Distributor to distribute downloadable versions of the
Localized Product on-line and via the Internet, using both Distributor's
facilities and hardware resources for e-

                                       3

<PAGE>

commerce, and any services, facilities and hardware resources supplied by third
party retailers who are validly sublicensed pursuant to Section 2(e). If deemed
necessary by any of the parties, further terms and conditions or the material
sale implementation procedures shall be settled with a further agreement between
the same parties, which shall be executed within a reasonable amount of time
after request in writing from either party.

         (i)      Subject to Section 2(j) below, Distributor shall not, and
shall ensure that any OEM Customer, distributor, retailer, Customer, or other
third party does not: (a) copy, reproduce, distribute or otherwise make
available the Software, Documentation, Product or Localized Product or any
portion or element of any of the foregoing except as and to the extent expressly
authorized herein and by Supplier; (b) translate, adapt, enhance, create
derivative works of or otherwise modify the Software, Documentation, Product or
Localized Product or any portion or element of any of the foregoing, except as
expressly set forth in Section 2(d) above, (c) decompile, disassemble or reverse
engineer (except as and to the extent permitted by applicable local law), or
extract ideas, algorithms, procedures, workflows or hierarchies from, the
Software, Documentation, Product or Localized Product or any portion or element
of any of the foregoing, (d) use the Software, Documentation, Product or
Localized Product or any portion or element of any of the foregoing to provide
facility management, service bureau or similar services to third parties; or (e)
reproduce or use in any manner (except solely as and to the extent expressly
authorized under Section 2 above), or remove, destroy, obscure or alter any
Lindows.com Branding Features or any related materials placed on or contained
within the Software, Documentation, or Product or any portion or element of any
of the foregoing. Distributor shall not, and shall not allow any other OEM
Customer, distributor, or retailer to, make any representation or warranty
binding on or purporting to bind Supplier, including but not limited to in
connection with the performance, condition, title, non-infringement,
merchantability, fitness for a particular purpose, system integration or data
accuracy of the Software, Documentation, Product or Localized Product or any
portion or element of any of the foregoing, and Distributor shall disclaim all
warranties implied by law and other warranties to the maximum extent permitted
by applicable law. Distributor shall comply strictly with all United States
import and export regulations (and any similar regulations in foreign countries)
and shall obtain all required licenses, approvals and/or other clearances to
export, re-export or import, as applicable, the Software, Documentation, Product
or Localized Product or any portion or element of any of the foregoing, and any
associated technical data, including, but not limited to, where a Software,
Documentation, Product or Localized Product or any portion or element of any of
the foregoing is installed on computer system.

         (j)      Certain software, or portions thereof, included in the
Software are distributed under the GNU General Public License ("GPL"), other
similar open source license agreements and other third party agreements which
contain terms that expand (or restrict) Distributor's and/or third parties'
rights to certain portions of the Software. The GPL and other similar open
source license agreements permit Distributor and/or third parties to copy,
modify, redistribute and have access to the source code of certain portions of
the Software. The GPL, other similar open source license agreements, other

                                       4

<PAGE>

third party agreements, on-line documentation, source code, and other
information about all such software programs are available at the website
http://www.lindows.com/licenses. To the extent the GPL, other similar open
source license agreements or other third party agreements require Supplier to
provide rights to the applicable portions of the Software that are broader than
the rights granted elsewhere in this Agreement, then the GPL and/or other
similar open source license agreements shall take precedence over the rights and
restrictions set forth in this Agreement. Nothing in this Section 2(j) shall
permit Distributor or any third party to use the Lindows.com Branding Features
in connection with exercising the rights granted under the GPL, other similar
open source license agreements or other third party agreements.

3.       OBLIGATIONS OF DISTRIBUTOR:

         (a)      Diligence. Distributor shall use commercially reasonable
efforts to promote the marketing and distribution of the Product to realize the
maximum sales potential for the Product in the Territory. Except as expressly
set forth herein, Distributor shall be solely responsible for all costs and
expenses related to the advertising, marketing, promotion, and distribution of
the Product and for performing its obligations hereunder.

         (b)      Repackaging. Any retail repackaging of the Product must be
approved by Supplier before the distribution of the Product in the Territory,
provided, however, that such approval shall not be unreasonably withheld.

         (c)      Translation; Localization. Distributor shall translate or
localize the Product into the Japanese language as provided in Section 2(d),
provided, however, that Supplier retain and shall have all ownership rights in
and to the Software, Documentation, Product, and Localized Product. Distributor
understands and agrees that Supplier shall have the right, at its sole and
absolute discretion, to sell and distribute the Localized Product to end users
or OEM customers outside of the Territory. Distributor shall provide a copy of
any and all publicly released versions of the Localized Product ten (10) days
prior to the release of the Localized Product.

         (d)      Product Support.

                  (i)      Distributor shall provide reasonable technical
support to Customers, including, without limitation: (a) maintaining trained and
competent technical and engineering support personnel for the Localized Product
who are sufficiently knowledgeable with respect to the Localized Product to
answer Customer questions regarding the use and operation of the Product, (b)
responding promptly to requests for technical support from Customers, and (c)
providing technical support services to address and resolve Customers' support
requests with respect to the Localized Product.

                  (ii)     Distributor shall ensure that all Customer questions
regarding the use or operation of the Localized Product are initially addressed
to and answered by Distributor. Unless otherwise agreed in writing by Supplier,
Distributor shall not

                                       5

<PAGE>

represent to any third party that Supplier is available to answer questions from
any Customer directly.

         (e)      End User License. Prior to providing any Customer with any
Software, Distributor shall ensure that each Customer has read and agreed to the
terms and conditions of, and validly executed, the End User License Agreement,
which shall be contained in each software unit. As set forth more fully in
Section 2(i), Distributor shall not conduct, support, or permit, and shall not
authorize any third party to conduct, support, or permit, the copying,
modification, alteration, reverse engineering, disassembly or decompiling of the
Product.

4.       OBLIGATIONS OF SUPPLIER:

         (a)      Marketing Support. Supplier shall provide Distributor with
reasonable marketing support, including providing reasonable quantities of
Supplier's advertising and promotional materials, pricing information and
technical data related to the Product. Supplier may also from time to time
provide, at Supplier's sole discretion, monetary support for certain marketing
and promotional activities involving the Product, such as exhibitions,
conventions, trade shows, and advertisements.

         (b)      Japanese Language CNR Warehouse Aisle. Supplier shall maintain
an aisle within the CNR Warehouse containing references to software applications
which may be of interest to Japanese-speaking end users, including, maintaining
bandwidth and infrastructure necessary to support such aisle. Supplier shall
exercise its sole and absolute discretion as to which software applications to
place within such Japanese language aisle.

5.       ***

6.       PRICE/PAYMENT:

         (a)      Per Unit License Fee. Pursuant to Section 2(a) above, for each
CD-ROM disk copied from the Gold Master, and for each Service purchased from
Supplier, Distributor shall pay a per-unit licensing fee to Supplier (the "Per
Unit License Fee"). During the Licensed Term (as defined in Section 9 below),
Distributor shall pay Supplier the Per Unit License Fee according to the
following schedule:

<TABLE>
<CAPTION>
           PRODUCT              PRICE
----------------------------    -----
<S>                             <C>
LindowsOS (Retail Version)       ***

LindowsOS (OEM Version)          ***

LindowsOffice with StarSuite     ***

LindowsLive (CD)                 ***

Lindows Laptop Edition           ***
</TABLE>

                                       6

<PAGE>

<TABLE>
<CAPTION>
        SERVICE           PRICE    MINIMUM UNITS PURCHASED
----------------------    -----    -----------------------
<S>                       <C>      <C>
LindowsPlus Membership     ***              ***

VirusSafe                  ***              ***
</TABLE>

                  Distributor shall purchase the number of minimum units of
services above, and thereafter, shall be able to purchase any number of units
without a minimum unit requirement. All payments by Distributor to Supplier
under this Section 6(a) shall be made in U.S. Dollars via certified check or
electronic wire transfer. Distributor shall provide Supplier, on a monthly
basis, sales, shipment, inventory, and other written or electronic reports
relating to Distributor's activities under this Agreement during the prior
month. All payments made by Distributor to Supplier shall be made within thirty
(30) days from the date of each monthly report.

         (b)      ***

         (c)      Updates. In the event Supplier makes available to the public,
any Updates for the Products listed in Section 6(a), Supplier shall give such
Updates to Distributor, free of charge, with the exception that no Updates shall
be given to Distributor after the expiration of the Licensed Term. Distributor
understands and agrees that Supplier shall not give any Updates for any of the
Products after the expiration of the Licensed Term. Distributor shall have the
right to distribute such Updates, pursuant to the license granted in Section 2
of this Agreement.

         (d)      Taxes. The prices set forth in Section 6(a) above do not
include any Japanese taxes, including franchise, sales and use taxes, if any.
Distributor shall be solely responsible for payment of any and all such taxes or
obligations, including any fines, penalties, or interest relating thereto.
Notwithstanding the foregoing, any sum required under applicable tax laws to be
withheld by Distributor for account of Supplier from payments due to Supplier,
shall be withheld and shall be promptly paid by Distributor to the appropriate
tax authorities. Distributor shall furnish Supplier official tax receipts or
other appropriate evidence issued by tax authorities sufficient to enable
Supplier to file a claim for credit in respect of any sum so withheld against
its home country's income taxes.

         (e)      Product Identification Numbers. For all Services that
Distributor purchases during the Licensed Term pursuant to Section 6(a) above,
Supplier shall provide Distributor with the product identification numbers for
the corresponding Services within ten (10) days of receipt of Distributor's
payment for such Services.

         (f)      Books and Records; Audit. Both parties shall maintain complete
books, records and accounts relevant to computation and accounting for amounts
payable under this Agreement. Each party agrees to allow an independent
certified public accountant the right to audit and examine such books, records
and accounts during normal business hours no more than once per year upon ten
(10) days notice at such examining party's expense, to verify the accuracy of
the reports and payments made under this Section 6. In

                                       7

<PAGE>

the event any such audit reveals that a party has knowingly breached a material
obligation hereunder, then, in addition to such other remedies as such examining
party may have, the audited party shall pay or reimburse to the examining party
the cost of such audit.

7.       REPLACEMENT OF THE PREVIOUS AGREEMENT:

         (a)      Distributor understands and agrees that the Previous Agreement
shall terminate on the Effective Date of this Agreement. Within ten (10) days of
the Effective Date of this Agreement, Distributor shall provide Supplier with a
full accounting of all Product in Distributor's inventory as of the Effective
Date. Any Product remaining in Distributor's inventory as of the Effective Date,
shall, at no charge to Distributor, become subject to the terms and conditions
of this Agreement. Any new Product copied by Distributor after the Effective
Date, and during the Licensed Term of this Agreement, shall be copied at the Per
Unit License Fee set forth in Section 6(a) above.

         (b)      Distributor understands and agrees that this Agreement shall
replace and supersede the Previous Agreement and all provisions thereof, and all
other agreements between the parties, written or oral. Distributor further
understands and agrees that the terms and conditions of this Agreement shall
prevail in the event of any discrepancy or conflict between this Agreement and
the Previous Agreement, unless otherwise agreed to in a document signed by each
of the parties hereto.

8.       LIMITED WARRANTY:

         (a)      Limited Warranty. Subject to the provisions of this Section 8,
Supplier warrants that for a period of sixty (60) days from the date Distributor
receives any Gold Master ("Warranty Period"), the Software will conform to the
specifications expressly set forth in the Documentation provided by Supplier. In
the event that the Software fails to conform to such specifications during the
Warranty Period, Supplier shall use commercially reasonable efforts to repair
and correct such errors so that the Software conforms to such specifications.

         (b)      Disclaimer of Warranties. EXCEPT AS EXPRESSLY PROVIDED IN
SECTION 8(a) ABOVE, SUPPLIER MAKES NO WARRANTIES OR CONDITIONS, EXPRESS,
STATUTORY, IMPLIED, OR OTHERWISE, AND SUPPLIER SPECIFICALLY DISCLAIMS THE
IMPLIED WARRANTIES AND CONDITIONS OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE. NOTWITHSTANDING THE FOREGOING, SUPPLIER DOES NOT EXCLUDE
LIABILITY TO THE EXTENT THAT SUCH LIABILITY MAY NOT BE EXCLUDED OR LIMITED BY
LAW.

         (c)      Customer Claims. Distributor shall ensure that all Customer
claims for warranty, repair, or replacement are addressed to Distributor and not
to Supplier.

9.       TERM AND TERMINATION:

                                       8

<PAGE>

         (a)      Licensed Term. This Agreement shall commence upon the
Effective Date and shall continue in full force and effect until *** ("Licensed
Term"), unless terminated earlier in accordance with the provisions of this
Agreement.

         (b)      Breach. If a party is in material breach of this Agreement and
has failed to cure such material breach within thirty (30) days after receiving
written notice from the other party of such material breach, the party not in
breach may terminate this Agreement. Without limiting the foregoing, either
party may terminate this Agreement effective upon written notice to the other
party stating such party's intention to terminate, in the event the other party:

                  (i)      ceases to function as a going concern or to conduct
operations in the normal course of business;

                  (ii)     has a petition filed by or against it under any
bankruptcy or insolvency law which petition has not been dismissed or set aside
within sixty (60) days of its filing; or

                  (iii)    fails to perform any of its obligations under this
Agreement so as to be in default hereunder and fails to cure such default within
thirty (30) days after receiving written notice of such default from the other
party.

         (c)      Customer Support. Distributor may continue to use the Product
after termination of this Agreement to provide customer support services as set
forth in Section 3(d) above, provided, however, that Distributor is not in
breach or default of payment, pursuant to Sections 5 and 6(a) above.

         (d)      No Liability for Termination. Except as expressly required by
law, in the event of termination of this Agreement by either party in accordance
with any of the provisions of this Agreement, neither party shall be liable to
the other, because of such termination, for compensation, reimbursement or
damages on account of the loss of prospective profits or anticipated sales or on
account of expenditures, inventory, investments, leases or commitments in
connection with the business or goodwill of Supplier or Distributor. Termination
shall not, however, relieve either party of obligations incurred prior to
termination.

         (e)      Survival. The following provisions shall survive expiration or
any termination of this Agreement: Sections 8, 9(c)-(f), 10, 11, 13, 15, and the
last sentence in Section 12(b).

         (f)      Return of Materials. All Software, Documentation, Product,
trademarks, marks, trade names, patents, copyrights, designs, drawings, formulas
or other data, photographs, samples, literature, and sales and promotional aids
of every kind shall remain the property of Supplier. Within thirty (30) days
after the effective date of termination of this Agreement, Distributor shall at
Supplier's option, destroy all tangible items bearing, containing, or contained
in, any of the foregoing, in its possession or

                                       9

<PAGE>

control and provide written certification of such destruction, or prepare such
tangible items for shipment to Supplier or Supplier's designee, as Supplier may
direct, at Supplier's expense. Distributor shall not make or retain any copies
of any Confidential Information (as defined in Section 10 below), which may have
been entrusted to it.

10.      CONFIDENTIALITY AND PROPRIETARY RIGHTS:

         (a)      Confidential Information. The term "Confidential Information"
shall mean any information disclosed by one party to the other party pursuant to
this Agreement or either party's activities hereunder, including, without
limitation, technical data, product design and development, sales information,
quantity and kind of products licensed, prices and methods of pricing, marketing
techniques and plans, product returns, unannounced products, product and process
information, and any other information which, if disclosed to others, might be
competitively detrimental to either party.

         (b)      Confidentiality. Each party shall treat as confidential all
Confidential Information of the other party, shall not use such Confidential
Information except to exercise its rights and perform its obligations under this
Agreement herein, and shall not disclose such Confidential Information to any
third party, except as expressly authorized in Section 10(c) below. Without
limiting the foregoing, each of the parties shall use at least the same degree
of care it uses to prevent the disclosure of its own Confidential Information of
like importance, to prevent the disclosure of Confidential Information of the
other party. Each party shall promptly notify the other party of any actual or
suspected misuse or unauthorized disclosure of the other party's Confidential
Information.

         (c)      Exceptions. Confidential Information excludes information
that: (i) was in the public domain at the time it was disclosed or has become in
the public domain through no fault of the receiving party; (ii) was known to the
receiving party, without restriction, at the time of disclosure, as demonstrated
by files in existence at the time of disclosure; (iii) is disclosed with the
prior written approval of the disclosing party; (iv) was independently developed
by the receiving party without any use of the Confidential Information; (v)
becomes known to the receiving party, without restriction, from a source other
than the disclosing party, without breach of this Agreement, by the receiving
party; or (vi) is disclosed generally to third parties by the disclosing party
without restrictions similar to those contained in this Agreement. The receiving
party may disclose the other party's Confidential Information to the extent such
disclosure is required by order or requirement of a court, administrative
agency, or other governmental body.

         (d)      Proprietary Rights. Distributor agrees that Supplier retains
all of its right, title and interest in and to all patent rights, trademarks,
trade names inventions, copyrights, know-how and trade secrets relating to the
Product, including modifications, translations, and/or localizations of the
Product performed by Distributor, or the product lines that include the Product,
and the design, manufacture, operation or service of the Product. To the extent
that the Product contains or incorporates intellectual property of parties other
than Supplier, Distributor agrees to respect such third party rights and abide

                                       10

<PAGE>

by any terms and conditions contingent upon grant and use of such rights, and
that such third parties retain any such rights, if applicable. The use by
Distributor of any of these property rights is authorized only for the purposes
herein set forth and upon termination of this Agreement for any reason such
authorization will cease, subject to Section 9(d). Distributor shall not (and
shall require that its Customers do not) remove, alter, cover or obfuscate any
copyright notices or other proprietary rights notices placed or embedded by
Supplier on or in any Product. Distributor hereby irrevocably assigns and agrees
to assign to Supplier, without additional consideration, all right, title and
interest in and to the Localized Product, whether currently existing or created
or developed later, including, without limitation, all copyrights, trademarks,
trade secrets, patents, industrial rights and all other intellectual property
and proprietary rights related thereto, whether existing now or in the future,
effective immediately upon the inception, conception, creation or development
thereof. Distributor shall (a) disclose promptly to Supplier the Localized
Product and any new version thereof, and (b) whether during or after the term of
this Agreement, execute such written instruments and do such other acts as may
be necessary in the opinion of Supplier to obtain a patent, register a copyright
or otherwise evidence or enforce Supplier's rights in and to such Localized
Product (and Distributor hereby irrevocably appoints Supplier and any of its
officers as its attorney in fact to undertake such acts in its name). To the
extent, if any, that Distributor retains any right, title or interest in or to
the Localized Product, Distributor hereby grants to the Supplier a perpetual,
irrevocable, fully paid-up, transferable, sublicensable, worldwide right and
license (a) to use, reproduce, distribute, display and perform (whether publicly
or otherwise), prepare derivative works of and otherwise modify, make, sell,
offer to sell, import and otherwise use and exploit (and have others exercise
such rights on behalf of Supplier) all or any portion of such Localized Product,
in any form or media (now known or later developed); (b) to modify all or any
portion of such Localized Product, including, without limitation, the making of
additions to or deletions from such Localized Product, regardless of the medium
(now or hereafter known) into which such Localized Product may be modified and
regardless of the effect of such modifications on the integrity of such
Localized Product; and (c) to identify Distributor, or not to identify
Distributor, as one or more authors of or contributors to such Localized Product
or any portion thereof, whether or not such Localized Product or any portion
thereof have been modified. Distributor further waives any "moral" rights or
other rights with respect to attribution of authorship or integrity of such
Localized Product Distributor may have under any applicable law, whether under
copyright, trademark, unfair competition, defamation, right of privacy,
contract, tort or other legal theory.

11.      PATENT/COPYRIGHT/TRADEMARK WARRANTY AND INDEMNIFICATION:

         (a)      Indemnity. Provided Distributor adheres to the Branding
Guidelines set forth by Supplier, Supplier represents and warrants that the
Product or any part thereof, does not violate or infringe any patent, copyright,
trademark, trade secret or other proprietary right of any third party. Supplier
agrees, at its own expense, to defend any third party claim, suit or proceeding
(collectively, "Action") brought against Distributor alleging the Product
infringes any patent, copyright, trademark, trade secret or other

                                       11

<PAGE>

proprietary right of Supplier in existence as of the Effective Date, subject to
the limitations hereinafter set forth. Supplier agrees to pay, subject to the
limitations hereinafter set forth, any final judgment entered against
Distributor on such issue in any such Action. Distributor shall notify Supplier
promptly in writing of such Action filed against Distributor and shall have the
right, but not the obligation, to participate in the defense of any such suit or
proceeding at Distributor's expense. Distributor will provide the Supplier with
proper and full information and its reasonable assistance in the defense of any
claim, suit or proceeding, at Supplier's expense. If it is adjudicatively
determined that the Product, or any part thereof, infringes any patent,
copyright or trademark, or if the sale or use of the Product, or any part
thereof, is, as a result, enjoined, or in the event of any pending or threatened
claim or infringement, then Supplier may, at its election, option, and expense:
(i) procure for Distributor the right under such patent, copyright or trademark
to sell or use, as appropriate, the Product or such part thereof; (ii) modify
the Product or part thereof; or (iii) cease distribution of the Product, or part
thereof, and refund any payments including (x) any minimum product or services
purchases under Section 6 paid by Distributor for such Product/Service and (y) a
pro rata portion of any paid installment of the exclusive licensing fees that
became due under the schedule set forth in Section 5 within 90 days from the
date of such election/option to cease distribution of the Product (for example
if such election is made 30 days from the date an installment became due, then
Supplier shall refund two-thirds of such installment), and Distributor's
obligations to pay all remaining exclusive licensing fee installments shall be
terminated.

         (b)      Modifications to Branding Guidelines. Supplier reserves the
right to modify the Branding Guidelines from time to time, and shall give
Distributor notice of any such modifications. Within thirty (30) days of receipt
of notice of any modifications to the Branding Guidelines, Distributor shall act
to assure that all Product, Product marketing materials or other promotional
matter complies with the Branding Guidelines. If at any time Distributor fails
to follow the Branding Guidelines, Supplier shall be relieved of any obligation
set forth in Section 10 relating to or resulting from such failure.

12.      USE OF TRADEMARKS/TRADE NAMES:

         (a)      Trademarks. During the Licensed Term of this Agreement,
Distributor shall have the right to indicate to the public that it is an
authorized distributor of Supplier's Product and to advertise such Product under
the trademarks, marks, and trade names of Supplier and in the promotion and
distribution of the Product; provided, however, that upon thirty (30) days prior
written notice to Distributor, Supplier may substitute alternative marks for any
or all of such Supplier's trademarks used by Distributor. All representations of
Supplier's trademarks that Distributor intends to use shall first be submitted
to Supplier for approval (which shall not be unreasonably withheld) of design,
color and other details or shall be exact copies of those used by Supplier. In
addition, Distributor shall fully comply with all reasonable guidelines, if any,
communicated by Supplier concerning the use of Supplier's trademarks.

                                       12

<PAGE>

         (b)      Use. Distributor shall not alter or remove any of Supplier's
trademarks affixed to the Product by Supplier. Except as set forth in this
Section 12, nothing contained in this Agreement shall grant or shall be deemed
to grant to Distributor any right, title or interest in or to Supplier's
trademarks. All uses of Supplier's trademarks shall inure solely to the benefit
of Supplier and Distributor shall obtain no rights with respect to any of
Supplier's trademarks, other than the right to distribute Product as set forth
herein, and Distributor irrevocably assigns to Supplier all such right, title
and interest, if any, in any of Supplier's trademarks. At no time during or
after the term of this Agreement shall Distributor challenge or assist others to
challenge Supplier's trademarks (except to the extent expressly prohibited by
applicable law) or the registration thereof or attempt to register any
trademarks, marks or trade names confusingly similar to those of Supplier. Upon
termination of this Agreement, Distributor shall immediately cease to use all of
Supplier's trademarks.

13.      LIMITATION OF LIABILITY: EXCEPT FOR DISTRIBUTOR'S OBLIGATIONS UNDER
SECTION 15(C), IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR LOST PROFITS, COST
OF PROCUREMENT OF SUBSTITUTE GOODS, OR ANY OTHER SPECIAL, RELIANCE, INCIDENTAL,
OR CONSEQUENTIAL DAMAGES, HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY
WHETHER BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE. THE
FOREGOING LIMITATIONS SHALL APPLY REGARDLESS OF WHETHER SUCH PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING THE FAILURE
ESSENTIAL PURPOSE OF ANY LIMITED REMEDY STATED HEREIN. NEITHER PARTY'S LIABILITY
ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL EXCEED THE AGGREGATE AMOUNTS
PAID BY DISTRIBUTOR TO SUPPLIER HEREUNDER. NOTWITHSTANDING THE FOREGOING, THIS
SECTION 13 SHALL NOT BE APPLICABLE WITH REGARD TO ANY BREACH OR LIABILITY UNDER
SECTIONS 10 AND 11.

14.      COMPLIANCE WITH LAWS:

         (a)      Export Control. Distributor understands and acknowledges that
Supplier is subject to regulation by agencies of the United States Government,
including, but not limited to, the U.S. Department of Commerce, which prohibit
export or diversion of certain products and technology to certain countries. Any
and all obligations of Supplier to provide the Product, as well as any other
technical information or assistance shall be subject in all respects to such
United States laws and regulations as shall from time to time govern the license
and delivery of technology and products abroad by persons subject to the
jurisdiction of the United States, including the Export Administration Act of
1979, as amended, any successor litigation, and the Export Administration
Regulations issued by the Department of Commerce, Bureau of Export
Administration. Distributor agrees to cooperate with Supplier including, without
limitation, providing required documentation, in order to obtain export licenses
or exemptions therefrom. Distributor warrants that it shall comply with the
Export Administration Regulations and other United States laws and regulations
governing exports in effect from time to time.

                                       13

<PAGE>

Distributor further agrees not to resell Product to any organization, public or
private, which engages in the research or production of military devices,
armaments, or any instrument of warfare, including biological, chemical and
nuclear warfare.

         (b)      Governmental Approvals. Distributor represents and warrants
that it has obtained all required approvals of the government within the
Territory in connection with this Agreement and that the provisions of this
Agreement and the rights and obligations of the parties hereunder, are
enforceable under the laws within the Territory. Supplier represents and
warrants that it has obtained all required approvals of the United States
government in connection with this Agreement and that the provisions of this
Agreement and the rights and obligations of the parties hereunder, are
enforceable under the laws of the United States of America.

15.      MISCELLANEOUS PROVISIONS:

         (a)      Independent Contractors. The relationship of Supplier and
Distributor established by this Agreement is that of independent contractors,
and neither party is an employee, agent, partner or joint venturer of the other.

         (b)      Assignment. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns;
provided, however, that neither party shall assign any of its rights,
obligations, or privileges (by operation of law or otherwise) hereunder without
the prior written consent of the other party, which consent shall not be
withheld unreasonably.

         (c)      Indemnity. Except for warranty claims for which Supplier is
liable under Section 8 and infringement claims covered by Section 11,
Distributor agrees to indemnify and hold Supplier harmless against any cost,
loss, liability, or expense (including attorneys' fees) arising out of third
party claims against Supplier relating to Distributor's use and distribution of
the Product.

         (d)      No Implied Waivers. The failure of either party at any time to
require performance by the other of any provision hereof shall not affect the
right of such party to require performance at any time thereafter, nor shall the
waiver of either party of a breach of any provision hereof be taken or held to
be a waiver of a provision itself.

         (e)      Severability. If any provision of this Agreement is held to be
invalid by a court of competent jurisdiction, then the remaining provisions
shall nevertheless remain in full force and effect. The parties agree to
renegotiate in good faith those provisions so held to be invalid to be valid,
enforceable provisions which provisions shall reflect as closely as possible the
original intent of the parties, and further agree to be bound by the mutually
agreed substitute provision.

         (f)      Force Majeure. Except for payment of monies, neither party
shall be liable for failure to fulfill its obligations under this Agreement or
for delays in delivery due to causes beyond its reasonable control, including,
but not limited to, acts of God,

                                       14

<PAGE>

acts of terror, man-made or natural disasters, earthquakes, fire, riots, flood,
material shortages, strikes, delays in transportation or inability to obtain
labor or materials through its regular sources. The time for performance of any
such obligation shall be extended for the time period lost by reason of the
delay.

         (g)      Conflicting Terms. The parties agree that the terms and
conditions of this Agreement shall prevail, notwithstanding contrary or
additional terms, in any purchase order, sales acknowledgement, confirmation or
any other document issued by either party effecting the purchase and/or sale of
Product.

         (h)      Authority. The parties executing this Agreement on behalf of
Supplier and Distributor represent and warrant that they have the authority from
their respective governing bodies to enter into this Agreement and to bind their
respective companies to all the terms and conditions of this Agreement.

         (i)      English Language. English shall be used as the authoritative
text of this Agreement, regardless of the existence of counterparts translated
into another language, and all communications, arbitrations, and other
adjudications hereunder shall be made and conducted in English.

         (j)      Recitals. The parties agree that each and every recital of
this Agreement shall be a covenant and agreement as well as a recital of this
Agreement.

         (k)      Headings. Headings of Sections herein are inserted for
convenience of reference only and shall not affect the construction or
interpretation of this Agreement.

         (l)      Notice. Any notice required or permitted to be given under
this Agreement shall be delivered (i) by hand, (ii) by registered or certified
mail, postage prepaid, return receipt requested, to the address of the other
party provided immediately below, or to such other address as a party may
designate by written notice in accordance with this Section 15(i), (iii) by
overnight courier with proof of delivery, (iv) by email to an officer of such
party, with confirming return email, or (v) by fax with confirming letter mailed
under the conditions described in (ii) above.

                           "Supplier"
                                    Lindows, Inc.
                                    9333 Genessee Ave., Suite 300
                                    San Diego, CA 92121
                                    FAX: (858) 587-8095

                           "Distributor"
                                    livedoor Co., Ltd.
                                    Roppongi Hills 387, 6-10-1 Roppongi
                                    Hirato-ku, Tokyo, 106-6138, Japan
                                    FAX: 81-3-51213-2237

                                       15

<PAGE>

         (m)      Entire Agreement. This Agreement contains the entire
understanding of the parties with respect to the subject matter hereof and
supersedes all prior agreements relating thereto, written or oral, between the
parties. Amendments to this Agreement must be in writing and signed by the duly
authorized officers of the parties. This Agreement may be executed in
counterparts and delivered by facsimile, all of which shall together be
effective as a single original.

         (n)      Governing Law. This Agreement is to be construed in accordance
with and governed by the internal laws of the State of California (as permitted
by Section 1646.5 of the California Civil Code or any similar successor
provision) without giving effect to any choice of law rule that would cause the
application of the laws of any jurisdiction other than the internal laws of the
State of California to the rights and duties of the parties. This Agreement
shall not be governed by the U.N. Convention on Contracts for the International
Sale of Goods, the application of which is expressly excluded. Nothing in this
Agreement is intended or will be construed to give any person (other than
Licensor and Licensee) any legal or equitable right, remedy or claim under this
Agreement or any provision hereof.

         (o)      Attorney's Fees. In the event a dispute arises regarding this
Agreement, the prevailing party shall be entitled to its reasonable attorney's
fees and expenses incurred in addition to any other relief to which it is
entitled.

         (p)      Further Assurances. Both parties agree to execute such
additional documents and perform such acts as are reasonably necessary to
effectuate the intent of this Agreement.

                                       16

<PAGE>

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
effective as of the Effective Date.

"Supplier"                                "Distributor"
LINDOWS, INC.                             LIVEDOOR CO., LTD.

By: /s/ Kevin Carmony                     By: /s/ Horie Takafumi
---------------------------------         ----------------------------------

Name: Kevin Carmony                       Name: Horie Takafumi

Title: Pres./COO                          Title: President & CEO

                                       17

<PAGE>

                                   EXHIBIT "A"

                                    "PRODUCT"

SOFTWARE - (IN OBJECT CODE FORM ONLY)

         LindowsOS (OEM Version)
         LindowsOS (Retail Version)
         LindowsOffice with StarSuite
         LindowsLive (CD)
         Lindows Laptop Edition

SERVICES

         LindowsPlus Membership
         VirusSafe

DOCUMENTATION

                                       18

<PAGE>

                                   EXHIBIT "B"

                           END USER LICENSE AGREEMENT

LindowsOS End User License Agreement

BETWEEN LINDOWS, INC. ("LINDOWS") AND EITHER (1) A FAMILY END-USER ("FAMILY") --
AN INDIVIDUAL END-USER AGREEING TO A FAMILY EDITION LICENSE FOR PERSONAL USE AND
USE BY MEMBERS OF SUCH INDIVIDUAL'S HOUSEHOLD OR (2) A BUSINESS END-USER
("BUSINESS") AGREEING TO A BUSINESS EDITION LICENSE FOR AN AGREED UPON NUMBER OF
SEATS OR NUMBER OF SIMULTANEOUS USERS, BUT NOT BOTH. THE FAMILY OR THE BUSINESS
("YOU" OR "YOUR"), AS APPROPRIATE, AGREES TO CAREFULLY READ THIS LICENSE
AGREEMENT (THIS "AGREEMENT") BEFORE INSTALLING OR USING THE LINDOWSOS SOFTWARE
PRODUCT (INCLUDING ALL ACCOMPANYING DOCUMENTATION, ENHANCEMENTS, UPGRADES AND
EXTENSIONS THERETO "LINDOWSOS"). INSTALLING OR OTHERWISE USING THIS PRODUCT
INDICATES YOUR ACKNOWLEDGMENT THAT YOU HAVE READ THIS AGREEMENT AND AGREE TO BE
BOUND BY AND COMPLY WITH ITS TERMS. IF YOU DO NOT AGREE TO THIS AGREEMENT,
PROMPTLY RETURN LINDOWSOS (WITHOUT INSTALLING IT) TO PLACE OF PURCHASE AND ANY
MONEY YOU HAVE PAID FOR LINDOWSOS WILL BE RETURNED.

SELECTING THE "I ACCEPT THIS AGREEMENT" OPTION FURTHER CONFIRMS YOUR ACCEPTANCE
OF ALL TERMS CONTAINED IN THIS AGREEMENT.

1. LICENSE.

1.1 License.

a. Family License: If You are a Family or Individual, You agree to the following
terms of this Section 1.1.a: LindowsOS is a modular operating system made up of
individual software components (each individual software component and all
accompanying documentation, enhancements, upgrades and extensions thereto are
referred to herein as "Software Program(s)") that were created either by Lindows
or various individuals and entities ("Third Parties"). Subject to the terms and
conditions of this Agreement, Lindows grants You a non-exclusive license to use
the object code form of LindowsOS for Your personal use in accordance with the
accompanying documentation. You may download and use LindowsOS on multiple
computers owned, leased or rented by You; provided, however, You and members of
Your Household (a "Household" consists of those individuals that currently
reside with You) are the only individuals with the right to use Your licensed
copy(ies) of LindowsOS. For example, if You have a desktop computer at home and
a laptop computer which You travel with, You may download a copy of LindowsOS on
both machines for the personal use of members of Your Household and You. You
agree that You are responsible for the members of Your Household's compliance
with the terms of this Agreement as though they were You and had agreed to all
terms and conditions herein. Except as otherwise expressly set forth herein, You
may not (and shall not allow any member of Your Household or any other Third
Party to) (i) remove any product identification or other notices; (ii) copy
LindowsOS (other than for back-up purposes, for Your personal use on Your
multiple machines as set forth in this Section 1.1.a, or for archival purposes);
(iii) provide, lease, lend, use for timesharing or service bureau purposes or
otherwise use or allow others to use LindowsOS to or for the benefit of Third
Parties, or (iv) modify LindowsOS or incorporate LindowsOS into or with other
software, except as may be provided for in this agreement.

b. Business License: If You are a Business, You agree to the following terms of
this Section 1.1.b: LindowsOS is a modular operating system made up of
individual software components (each individual software component and all
accompanying documentation, enhancements, upgrades and extensions thereto are
referred to herein as "Software Program(s)") that were created either by Lindows
or various individuals and entities ("Third Parties"). Subject to the terms and
conditions of this Agreement, Lindows grants You a non-exclusive license for
Your authorized users to use the object code form of LindowsOS for Your internal
business purposes on Business owned, rented or leased computers in accordance
with the accompanying documentation for: (1) solely up to the number of
Simultaneous Users purchased by You as set forth at
www.lindows.com/businesslicense, regardless of the number of Business owned,
rented or leased computers that You download LindowsOS on or (2) solely up to
the number of Seats purchased by You as set forth at
www.lindows.com/businesslicense. "Simultaneous Users" refers to authorized users
that may use LindowsOS at the same time. A "Seat" is a single computer
processing unit or "CPU" (including computers with redundant processing
systems), whether LindowsOS is installed directly on that CPU or is served from
a centralized server. Except as otherwise expressly set forth herein, You and
Your authorized users may not (and shall not allow any Third Party or any of
Your authorized users to) (i) remove any product identification or other
notices; (ii) copy LindowsOS (other than for back-up purposes, for use on
multiple Seats as set forth in this Section 1.1.b, or for archival purposes);
(iii) provide, lease, lend, use for timesharing or service bureau purposes or
otherwise use or allow others to use LindowsOS to

                                       19

<PAGE>

or for the benefit of Third Parties, or (iv) modify LindowsOS or incorporate
LindowsOS into or with other software, except as may be provided for in this
agreement. You shall keep a current record of the location of each copy of
LindowsOS You make.

1.2 Third Party Agreements. Many of the Software Programs included in LindowsOS
are distributed under the terms of agreements with Third Parties ("Third Party
Agreements") which may expand or limit Your rights to use certain Software
Programs as set forth in Section 1.1. Certain Software Programs may be licensed
(or sublicensed) to You under the GNU General Public License and other similar
open source license agreements ("OSLAs") which, among other rights, permit You
to copy, modify and redistribute certain Software Programs, or portions thereof,
and have access to the source code of certain Software Programs, or portions
thereof. In addition, certain Software Programs, or portions thereof, may be
licensed (or sublicensed) to You under terms stricter than those set forth in
Section 1.1. Please review visit www.lindows.com/licensing for the on-line
documentation that accompanies certain Software Programs, or portions thereof,
for the applicable Third Party Agreements. To the extent any Third Party
Agreements require that Lindows provide rights to use, copy or modify a Software
Program that are broader than the rights granted in Section 1.1, then such
rights shall take precedence over the rights and restrictions granted in this
Agreement solely for such Software Programs.

1.3 Violation of Licensing Terms. Any violation by You of the applicable license
terms set forth in Section 1.1 or Section 1.2, as appropriate, shall immediately
terminate Your license to use LindowsOS. If You do not agree to comply with and
be bound by the terms of the applicable license agreement(s), do not install,
distribute or otherwise use LindowsOS.

2. PROPRIETARY RIGHTS.

All right, title and interest in LindowsOS, including source code,
documentation, appearance, structure and organization, are held by Lindows
and/or its licensors and are protected by copyright and other laws. You may not
copy or otherwise use LindowsOS, in whole or in part, except as expressly
permitted in this Agreement. Title to LindowsOS, or to any copy, modification or
merged portion of any of the Software Programs, shall at all times remain with
Lindows and/or its licensors, subject to the terms of the applicable Third Party
Agreement(s) to the Software Programs under consideration.

3. TRADEMARKS

"Lindows.com" and "LindowsOS" are registered trademarks of Lindows.com, Inc.,
All Rights Reserved. "Linux" is a registered trademark of Linus Torvalds. All
other trademarks are the property of their respective owners. While certain
Third Party Agreements described in Section 1.2 may allow You to copy, modify
and distribute certain Software Programs, they do not permit You to distribute
the Software Programs utilizing Lindows.com's trademarks.

4. LIMITED WARRANTY.

IF LINDOWSOS WAS DISTRIBUTED TO YOU BY LINDOWS OR A LINDOWS AUTHORIZED
DISTRIBUTOR ON CD-ROM OR OTHER TANGIBLE STORAGE MEDIA, LINDOWS WARRANTS THAT THE
STORAGE MEDIA IN THIS PRODUCT WILL BE FREE FROM DEFECT IN MATERIALS AND
WORKMANSHIP UNDER NORMAL USE FOR A PERIOD OF THIRTY (30) DAYS FROM THE DATE THAT
YOU ACQUIRE IT. IF SUCH A DEFECT OCCURS, RETURN THE MEDIA TO LINDOWS AT,
LINDOWS.COM, INC., 9333 GENESEE AVE., SAN DIEGO, CA 92121, AND LINDOWS WILL
REPLACE IT FREE OF CHARGE. THIS REMEDY IS YOUR EXCLUSIVE REMEDY FOR BREACH OF
THIS WARRANTY.

EXCEPT WHERE SPECIFICALLY STATED OTHERWISE IN THIS AGREEMENT, LINDOWSOS,
INCLUDING WITHOUT LIMITATION EACH SOFTWARE PROGRAM, IS PROVIDED TO YOU ON AN "AS
IS" BASIS, WITHOUT ANY OTHER WARRANTIES OR CONDITIONS AND LINDOWS EXPRESSLY
DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO,
WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, OR THOSE ARISING BY LAW, STATUTE, USAGE OF TRADE, COURSE OF DEALING OR
OTHERWISE. ANY WARRANTY OR REMEDY PROVIDED UNDER THIS AGREEMENT EXTENDS ONLY TO
THE PARTY WHO PURCHASES A LICENSE TO LINDOWSOS FROM LINDOWS OR A LINDOWS
AUTHORIZED DISTRIBUTOR.

Some jurisdictions do not allow the exclusion of implied warranties, so the
above exclusion may not apply to You. You may have other rights which vary from
jurisdiction to jurisdiction.

5. LIMITATION OF LIABILITY.

THE ENTIRE RISK AS TO THE RESULTS AND PERFORMANCE OF LINDOWSOS IS ASSUMED BY
YOU. NEITHER LINDOWS NOR ITS APPOINTED DEALERS, SUPPLIERS OR LICENSEES SHALL
HAVE ANY LIABILITY TO YOU OR ANY OTHER PERSON OR ENTITY FOR ANY INDIRECT,
INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES WHATSOEVER, INCLUDING, BUT NOT
LIMITED TO, LOSS OF REVENUE OR PROFIT, LOST OR DAMAGED DATA OR OTHER COMMERCIAL
OR ECONOMIC LOSS, EVEN IF LINDOWS OR SUCH DEALER, SUPPLIER OR LICENSEE HAS BEEN

                                       20

<PAGE>

ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, OR THEY ARE FORESEEABLE. OUR MAXIMUM
AGGREGATE LIABILITY TO YOU AND THAT OF OUR DEALERS AND SUPPLIERS FOR DIRECT
DAMAGES SHALL NOT EXCEED THE AMOUNT PAID BY YOU FOR LINDOWSOS. THE LIMITATIONS
IN THIS SECTION SHALL APPLY WHETHER OR NOT THE ALLEGED BREACH OR DEFAULT IS A
BREACH OF A FUNDAMENTAL CONDITION OR TERM OR A FUNDAMENTAL BREACH.

Some jurisdictions do not allow the limitation or exclusion of liability for
incidental or consequential damage, so the above limitation may not apply to
You.

6. DISTRIBUTION.

If You are permitted to redistribute any Software Programs under an appropriate
OSLA, it is Your responsibility to comply with all export laws, rules and
regulations in the jurisdictions where the Software Programs are exported from,
exported to, or re-exported from time to time.

7. TERM.

This Agreement is effective until terminated. You may terminate this license at
any time by destroying all copies of LindowsOS. The Agreement will terminate
automatically if You fail to comply with any term or condition of the Agreement.
The provisions of Sections 1.2 (regarding OSLAs that remain in force) and 2 - 8,
shall survive termination.

8. GENERAL.

This Agreement, together with the Third Party Agreements, is the entire
agreement regarding Your use of LindowsOS, superseding any other agreement or
discussions, oral or written, and may not be changed except by a signed
agreement. Except as set forth in the appropriate OSLA, You may not assign Your
rights or obligations under this Agreement without the prior consent of Lindows.
This Agreement shall be governed by and construed in accordance with the laws of
the State of California, excluding that body of law applicable to choice of law
and excluding the United Nations Convention on Contracts for the International
Sale of Goods and any legislation implementing such Convention, if otherwise
applicable. The sole jurisdiction and venue for actions related to the subject
matter hereof shall be the state and federal courts located in San Diego County.
In any action to enforce this Agreement, the prevailing party shall be entitled
to costs and attorneys' fees. If any provision of this Agreement is declared by
a Court of competent jurisdiction to be invalid, illegal, or unenforceable, such
a provision shall be severed from the Agreement and the other provisions shall
remain in full force and effect. At no time shall a failure or delay in
enforcing any provisions, exercising any option or requiring performance, be
construed to be a waiver.

                                       21

<PAGE>

                                   EXHIBIT "C"

                           LINDOWS BRANDING GUIDELINES

BRANDING FEATURES

To be provided on request.

TRADEMARK NOTICES

The Branding Features are trademarks and service marks of Lindows. The Branding
Features shall be accompanied by the superscript "TM" or "(R)" symbol, as
specified by Lindows, which must appear to the immediate right of the Branding
Features. The footnote "LindowsOS is the trademark of Lindows, Inc." or "Lindows
is the trademark of Lindows, Inc.", as applicable, shall accompany each use of
the Branding Features (or, if a Branding Feature is used multiple times in a
document, screen or packaging, such notice shall accompany the first prominent
use in such document, screen or packaging).

USING THE BRANDING FEATURES

Distributor may only use the Branding Features as an indication that the
Software is being offered to end users via distribution pursuant to this
Agreement. Distributor may not use the Branding Features in such a way as to
suggest that the Branding Features may also apply to any hardware or software
other than the Software. When referring to Lindows, Inc., Distributor shall use
the name "Lindows." When referring to the Software, Licensee shall use the
trademark "LindowsOS."

SIZING AND PLACEMENT REQUIREMENTS

The digitized, machine-readable file for the artwork of the Branding Features
shall be delivered as provided above in this Exhibit C. Distributor shall not
alter this file or the Branding Features in any way, including, without
limitation, changing the color of any of the logos or artwork, separating any
words in the Branding Features from the remainder of the Branding Features or
replacing words with any other words.

Distributor shall not combine the Branding Features with any other feature,
including, without limitation, other marks, words, graphics, photos, slogans,
numbers, design features or symbols.

The Branding Features shall not be larger or more prominent than the trademark,
logo or any Distributor trade name that appears on the same packaging,
documentation, advertising or other materials. The Branding Features shall not
be smaller or less prominent than any name, trademark or logo of any third party
that appears on the same packaging, documentation, advertising or other
materials.

                                       22

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