Document:

<PAGE>

                                                                   EXHIBIT 10.13

[Logo of Ingram Micro]

                           INTERNET RESALE AGREEMENT
                           -------------------------

This Agreement ("Agreement") is by and between PeoplePC Inc. ("PeoplePC"), with
its principal place of business at 100 Pine Street, FL 11, San Francisco,
California 94111, and Ingram Micro Inc. ("Ingram") excluding its subsidiaries,
with its principal place of business at 1600 East St. Andrew Place, Santa Ana,
California 92705. This Agreement will include orders from PeoplePC's website for
shipment within the United States, excluding its Territories.

1.   PURPOSE

     The purpose of this Agreement is to provide the terms and conditions for
     the purchase and resale by PeoplePC and the sale by Ingram to PeoplePC of
     products described in Ingram's current comprehensive product listing,
     including any special Stock Keeping Units (SKUs) that have been established
     for PeoplePC ("Product"), excluding electronic software distribution (ESD),
     via PeoplePC's web page on the Internet, direct response television and
     direct mail.

2.   TERMS OF SALE

     A.   All Product sales will be subject to Ingram's standard Sales Terms and
     Conditions (see Exhibit F), as may be amended from time to time without
     notice at Ingram's sole discretion, published in its Comprehensive Catalog
     ("Catalog") at the time of purchase and are hereby incorporated by
     reference. Ingram's current terms and conditions can be found on its
     website www.ingrammicro.com. Should Ingram's Catalog provisions conflict
     with this Agreement, the provisions of this Agreement will prevail.

     B.   If authorization for resale is required by the publisher or
     manufacturer ("Vendor") of any Product, then Ingram will not be obligated
     to sell such Product to PeoplePC unless Ingram has received such required
     authorization. Ingram will make a reasonable effort to assist PeoplePC in
     obtaining Vendor authorizations as required. If any Vendor prohibits Ingram
     from selling a specific Product to PeoplePC, then Ingram reserves the right
     not to sell said Product to PeoplePC.

3.   VOLUME AND SERVICE LEVEL COMMITMENTS

     Both parties agree to perform in accordance with their respective
     obligations as specified in Exhibit A hereto. PeoplePC shall purchase from
     Ingram the entire quantity of Systems identified in its Forecast (Exhibit E
     hereto) and all additional Systems included in subsequent Forecast updates
     but only to the extent that Ingram has actually ordered such originally
     Forecast quantities and Ingram, after using commercially reasonable
     efforts, is not able to cancel or defer such orders.

4.   ORDERING

     A.   PeoplePC will compile, update and provide Ingram with Product order
     information. The Product order information will include the: (i) Product
     type(s), (ii) unit quantity, (iii) Ingram SKU number, (iv) PeoplePC current
     price, (v) PeoplePC purchase order number and (vi) correct shipping
     address.

     B.   Ingram will receive orders electronically via Ingram's InsideLine
     electronic ordering system only from those who have been identified as
     authorized PeoplePC personnel and can

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                                                                    Confidential

Confidential treatment has been requested with respect to the omitted portions
of this exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as [*]. A complete version of
this exhibit has been filed separately with the Securities and Exchange
Commission.
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                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

     provide the Ingram customer number and a PeoplePC purchase order number.
     Ingram will have no obligation to confirm the validity of any order placed
     or the authority of the person placing an order in this manner and assumes
     no liability for orders placed by unauthorized persons. PeoplePC will
     disclose its Ingram customer number only to its personnel with a need to
     know.

     C.   In the event PeoplePC transmits an order with pricing higher than
     Ingram's price to PeoplePC, Ingram will invoice PeoplePC at Ingram's lower
     price. In the event PeoplePC transmits an order with pricing lower than
     Ingram's price to PeoplePC, Ingram will notify PeoplePC to make the
     appropriate change and Ingram will invoice PeoplePC at Ingram's price.

     D.   Backordered items will be shipped automatically if the backorder is
     released within thirty (30) days of the original order date. Ingram will
     cancel all backorders greater than thirty (30) days unless otherwise
     notified by PeoplePC.

5.   DATA SYNCHRONIZATION

     Ingram will make Product information available electronically to PeoplePC
     via InsideLine. PeoplePC is responsible for accessing, downloading and
     updating Product information and performing regularly scheduled refreshes
     to ensure the accuracy of PeoplePC's pricing information.

6.   PRICING

     A.   System Pricing. Exhibit B includes pricing for specific personal
          --------------
     computer systems including a Central Processing Unit (CPU), installed
     software, monitor, keyboard, and mouse ("System"). Ingram will provide
     PeoplePC with ninety (90) days prior written notice of any System pricing
     increases. Ingram and PeoplePC agree to review System pricing quarterly.

     B.   For all Product not specifically identified in Exhibit B, pricing will
     be established as of the date of order.

7.   SHIPPING

     A.   All orders will be shipped FOB origin, via one of the UPS or Federal
     Express options listed below as indicated on PeoplePC's purchase order to
     Ingram. Each System shipped via UPS will be shipped standard ground freight
     with adult signature required for receipt. For each System shipped Ingram
     will charge and PeoplePC agrees to pay Ingram the shipping charges
     identified below.

<TABLE>
<CAPTION>
          --------------------------------------------------------------
               Carrier             Delivery Service         Charges
          --------------------------------------------------------------
                                                          (Per System)
          --------------------------------------------------------------
          <S>                      <C>                    <C>
                 UPS                Standard ground         [*]
          --------------------------------------------------------------
               UPS Blue                  2/nd/ Day          [*]
          --------------------------------------------------------------
           Federal Express               2/nd/ Day          [*]
          --------------------------------------------------------------
           Federal Express          Standard Overnight      [*]
          --------------------------------------------------------------
           Federal Express         Priority Overnight       [*]
          --------------------------------------------------------------
               UPS Red                  Overnight           [*]
          --------------------------------------------------------------
</TABLE>

     Ingram and PeoplePC agree to review the above shipping charges a minimum of
     ninety (90) days after the effective date of this Agreement. In the event a
     shipment is lost, stolen, or damaged prior to receipt by the addressee,
     Ingram will administer the claim with the carrier and will credit
     PeoplePC's account for the purchase price of the Product and associated
     shipping charges.

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     the Securities and Exchange Commission. Confidential treatment has been
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                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

     PeoplePC agrees to pay for any freight carrier charges for C.O.D. or any
     other special handling fees.

     B.   Packaging: All Products shipped directly to PeoplePC customers shall
          ---------
     be packaged with minimal reference to Ingram. Specifically, the packaging
     shall not display any Ingram trademark, service mark, logo, or trade name.
     PeoplePC shall provide all necessary bezels and labels as required to
     perform any desired customization of the Systems and boxes. If the carrier
     requires a return address, Ingram may use its warehouse address, without
     its company name, on such shipment. PeoplePC may utilize Ingram's limited
     customization of standard packing slips upon written request.

     C.   Ingram will make its best efforts to ship Products within five (5)
     business days of PeoplePC's order. All orders properly transmitted and
     received after 2 p.m. Eastern Time, Monday through Friday will be
     considered received on the day following the date the order was transmitted
     to Ingram. Ingram shall not be liable for any failure or any delay in the
     delivery of any Products due to a cause or causes not reasonably within the
     control of Ingram including, without limitation, any delay caused by acts
     of God, acts of PeoplePC, acts of civil or military authorities, fires,
     strikes, floods, epidemics, governmental rules or regulations, wars, police
     actions, or embargoes. Ingram shall not be liable for any losses or
     damages, direct, indirect, special, consequential, incidental or otherwise
     (including but not limited to advertising expenditures by PeoplePC), that
     may arise out of Ingram's failure to meet delivery schedules.

     D.   Ingram shall provide PeoplePC with access to the date of shipment and
     tracking information for each shipment within one (1) day after such
     shipment of Products. Ingram shall instruct the chosen carrier that they
     shall only release Product to a physical person and only at the correct
     shipping address.

     E.   All shipments shall be made from one or more distribution centers in
     the following states: California, Illinois, Pennsylvania, and such other
     states as the parties may mutually agree upon from time to time.

8.   PAYMENT TERMS

     A.   Ingram will invoice PeoplePC or a financial institution designated by
     PeoplePC and approved by Ingram upon Product shipment and all invoices will
     be due and payable net five (5) days from invoice date. Notwithstanding the
     designated recipient of the invoices hereunder, PeoplePC will be completely
     and solely liable to Ingram for the proper payment of all invoices
     hereunder. Ingram will invoice PeoplePC via an Ingram approved electronic
     method. The extension of credit and net terms are subject to Ingram's
     approval and is contingent upon PeoplePC keeping its account current with
     Ingram. PeoplePC agrees to provide adequate financial information as
     required by Ingram's Credit Department. PeoplePC agrees that its payment to
     Ingram is not dependent upon PeoplePC's receipt of payment from its
     customers.

     B.   All shipment discrepancies resulting in a request for credit from
     PeoplePC must have documentation (see Exhibit C) and be communicated to
     Ingram's Credit Department within thirty (30) days of the date of invoice.
     PeoplePC will immediately request a return material authorization ("RMA")
     number for mis-shipped, overgoods, and canceled (shipped after written
     cancellation date) orders. Upon authorization, PeoplePC agrees to return
     Products to Ingram's designated warehouse, freight prepaid by PeoplePC, FOB
     destination. In the event the Product return is the result of an Ingram
     error, Ingram will arrange and pay for the return freight.

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                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

9.   RETURNS

     A.   PeoplePC must obtain a valid Return Material Authorization ("RMA")
     number from Ingram for all returns. As used herein, "Resalable Condition"
     shall mean Product that is without price tags, clean, undamaged, unused,
     unopened and complete in the manufacturer's original packaging. All
     Products returned must be in Resalable Condition. If Ingram receives a
     return without an RMA number it will be considered a refusal ("Refusal").
     For Refusals, Ingram will receive the Product, scan it into the database,
     and verify the condition of the Product by visible inspection. PeoplePC
     will be charged the following re-stocking fees for all Refusals.

<TABLE>
<CAPTION>
          --------------------------------------------------------
                     PRODUCT               RE-STOCKING FEE
          --------------------------------------------------------
          <S>                              <C>
                     Systems                   [*] each
          --------------------------------------------------------
               All other Product           [*]
          --------------------------------------------------------
</TABLE>

     B.   Systems Returns. For all Systems purchases Ingram will accept returns
          ---------------
     of non-defective Systems that are in Resalable Condition subject to a
     monthly returns rate maximum of [*] of the total value of all purchases
     during the previous Ingram fiscal month. PeoplePC will be assessed a re-
     stocking fee of [*] for each System returned.

     C.   Non-Systems Product Returns. Ingram may grant PeoplePC a RMA for
          ---------------------------
     Products purchased from Ingram, excluding Systems, within one hundred fifty
     (150) days of invoice date for credit against future purchases by PeoplePC;
     provided that the total purchase price of all such returns shall not exceed
     fifteen percent (15%) of all purchases during the ninety (90) days
     preceding the request to return the Products. Notwithstanding anything to
     the contrary, Ingram reserves the right not to authorize the return of
     Products which are: (i) no longer in production; (ii) being produced or
     published by a manufacturer or publisher which is insolvent, has declared
     bankruptcy, or will not accept returns from Ingram, or (iii) subject to
     more restrictive stock balancing policies issued by the Product's
     manufacturer or publisher. Ingram will make its best efforts to inform
     PeoplePC of any manufacturer or publisher changes to their returns policies
     via InsideLine. PeoplePC shall pay all costs and bear all risks of loss
     when returning Non-Systems Products to Ingram.  Non-Systems Configured
     Products may not be returned.

     D.   All Refusals received by Ingram that are not in Resalable Condition as
     determined by Ingram's visual inspection, at Ingram's reasonable sole
     discretion, will be re-shipped at PeoplePC's expense to either: (i) an
     address provided by PeoplePC within forty-eight (48) hours of Ingram's
     receipt of the Refusal; or (ii) PeoplePC's designated liquidator. In the
     event that PeoplePC has not provided Ingram with a valid ship to address
     for any Refusal as identified above, then PeoplePC agrees to relinquish all
     rights and title to Refusals that are not in Resalable Condition and grants
     permission to Ingram to liquidate Refusals without issuing credit to
     PeoplePC's account. PeoplePC also agrees to reverse debits for Refusals
     within ten (10) days of notification of the Refusal.

     E.   Defective/DOA Products: Subject to the manufacturer's or publisher's
          ----------------------
     warranty requirements and restrictions, Ingram may grant PeoplePC a RMA for
     defective Products purchased from Ingram for replacement or credit against
     future purchases by PeoplePC. All defective Products except for Configured
     Products, mass storage and branded memory Products for which Ingram has
     granted an RMA must be returned to Ingram within ninety (90) days of
     invoice date. Defective Configured Products, mass storage and branded
     memory Products must be returned to Ingram within thirty (30) days of
     invoice date. Ingram may return to PeoplePC, at PeoplePC's expense, any
     Products found not to be defective. Ingram reserves the right to require
     PeoplePC to return defective Products directly to the Products'
     manufacturer or publisher for

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     the Securities and Exchange Commission. Confidential treatment has been
     requested with respect to the omitted portions.
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                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

     replacement according to the manufacturer's or publisher's defective
     Products return policy. Ingram will pay ground-freight expenses for
     defective or DOA Products that are returned to Ingram. Ingram shall not be
     obligated to repair or replace Products rendered defective, in whole or in
     part, by causes external to the Products, including, but not limited to,
     catastrophe, power failure or transients, overvoltage on interface,
     environment extremes, improper use, maintenance and application of the
     Products or use of unauthorized parts.

     F.   In an effort to eliminate future reconciliation issues when a credit
     is granted, Ingram agrees to credit PeoplePC within thirty (30) days of
     claim approval and PeoplePC agrees to hold any deduction for thirty (30)
     days from the ship date of any return.

     G.   Damaged box or re-box service fees of thirty-five dollars ($35) per
     item and additional costs for packaging goods as applicable may also apply.

     H.   Ingram reserves the right to change its return policies at any time
     without notice to PeoplePC. Ingram will provide PeoplePC thirty (30) days
     prior written notification of any changes to its return policies applicable
     to the Systems listed in Exhibit B.

10.  MARKETING

     Ingram will make commercially reasonable efforts to obtain co-op or
     marketing funds from Vendors for PeoplePC.

11.  RECONCILIATION

     A.   Ingram and PeoplePC agree to reconcile any open accounts receivable
     balance on PeoplePC's account every ninety (90) days. In order to allow
     appropriate credits to be applied, Ingram requires that PeoplePC apply a
     thirty (30) day delay from the ship date of a return to Ingram in debiting
     Ingram. Claims must be submitted to Ingram in writing with the required
     documentation as set forth in Exhibit C. Ingram will issue credit memos
     within thirty (30) days of claim approval. The applicable documentation as
     set forth in Exhibit C must accompany PeoplePC's check(s) containing the
     deduction(s). Upon notification by Ingram, all denied claims require
     immediate payment by PeoplePC.

     B.   PeoplePC will complete all audits within sixty (60) days of the close
     of its fiscal year.  PeoplePC agrees to submit internal post audit claims
     to Ingram within thirty (30) days of completion of the audit. Ingram will
     have sixty (60) days to respond in writing to these claims prior to
     PeoplePC taking any deduction.

12.  SALES TAX

     PeoplePC will assume full responsibility for the collection of all sales
     tax and reporting to the appropriate authorities. PeoplePC agrees to
     defend, indemnify, and hold harmless Ingram from and against any and all
     damages and costs incurred that may result from inadequate collection and
     reporting of sales tax.

13.  RESALE ONLY/EXPORT

     All Products delivered to PeoplePC hereunder are for resale only and will
     not be used for the internal business purposes of PeoplePC, or any parent
     company, subsidiary or affiliate of PeoplePC. All Products delivered to
     PeoplePC hereunder are intended for use in the United

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                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

     States only. Shipment of the Products outside the United States is
     prohibited without the express written permission of Ingram.

14.  CONFIDENTIALITY

     A.   This Agreement is and contains confidential information, and as such
     will not be disclosed to any third party without the express written
     consent of both parties, except that PeoplePC may disclose this Agreement
     to potential investors in or acquirers of PeoplePC who have agreed in
     writing to obligations of confidentiality at least as restrictive as those
     contained in this Agreement. The parties agree to disclose the terms and
     conditions of this Agreement only to their respective personnel with a need
     to know.

     B.   For a period of two (2) years from the date of disclosure to the other
     party, both parties agree that they will not disclose to third parties the
     Confidential Information, as hereafter defined, of the other without the
     other party's prior written permission. Confidential Information shall mean
     all proprietary information and/or trade secrets regardless of the form in
     which it is transmitted, which (a) if disclosed in tangible form bears a
     legend indicating that it is confidential or proprietary; or (b) if
     disclosed orally or visually only, is identified as confidential or
     proprietary at the time of disclosure and is documented as such in writing
     and a non-confidential written summary of the disclosure is provided to the
     other party within thirty (30) days of the date of disclosure. Confidential
     Information will only be used by the parties in furtherance of this
     business relationship.

     C.   The foregoing obligations not to disclose Confidential Information
     shall not apply with respect to a party's Confidential Information that:
     (i) was in the possession of or known by the other party without an
     obligation of confidentiality prior to receipt from the disclosing party,
     (ii) is or becomes general public knowledge through no fault or acts of the
     other party; (iii) is or becomes lawfully available to the other party from
     a third party which, to the other party's knowledge, is not subject to an
     obligation of confidentiality; (iv) is independently developed by the other
     party without use of any Confidential Information; or (v) the other party
     is advised by counsel is required to be disclosed by any governmental
     agency or pursuant to any law, code or regulation, provided the disclosing
     party notifies the other party in writing as soon as it becomes aware of
     the disclosure requirement so as to afford the other party every
     opportunity to take whatever steps it deems necessary to protect the
     confidentiality of the information. In the event that PeoplePC determines
     that it must file this Agreement as an exhibit to any registration
     statement or report it files with the U.S. Securities and Exchange
     Commission (the "SEC"), PeoplePC will request confidential treatment for
     the filings, will permit Ingram to review and approve the portions of this
     Agreement for which confidential treatment is requested at least seventy-
     two (72) hours prior to the filing, and will permit Ingram to participate
     in any discussions it or its representatives may have with the SEC with
     respect to such request.

15.  NOTICES

     All notices and other communications relating to this Agreement or its
     terms will be in writing and mailed via first class United States Postal
     Service, certified or registered with return receipt requested, by courier
     that provides proof of delivery, or via facsimile. All notices so mailed
     will be deemed received two (2) days after postmark date and facsimiles
     will deemed received upon notification of successful transmission.

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                                                                    Confidential
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                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

16.  INDEMNIFICATION

     Ingram will pass through to PeoplePC any Vendor's contractual obligation to
     indemnify Ingram to the extent such Vendor has agreed that Ingram may pass
     it through to its resellers. Ingram will try to seek product liability,
     breach of warranty, and intellectual property infringement indemnification
     for PeoplePC from Toshiba, Compaq, Hewlett-Packard, and any other Vendors
     as mutually agreed upon, for the Systems of their manufacture sold by
     Ingram to PeoplePC hereunder and Ingram will make commercially reasonable
     efforts in our negotiations with these vendors to obtain such
     indemnification.

17.  CHOICE OF LAW

     This Agreement shall be deemed to have been executed and delivered in Santa
     Ana, California, and shall be construed, interpreted and enforced under and
     in accordance with the internal laws of the State of California, excluding
     its conflicts or choice of law rule or principles which might refer to the
     law of another jurisdiction.

18.  BINDING EFFECT/ASSIGNMENT

     This Agreement shall be binding upon and shall inure to the benefit of the
     parties hereto, and their respective representatives, successors and
     permitted assigns. Neither party may assign its rights and/or duties under
     this Agreement without the prior written consent of the other party given
     at the other party's sole option; except that Ingram may assign this
     Agreement to a subsidiary or affiliate upon notice to PeoplePC and either
     party may assign this Agreement upon notice to the other party upon the
     sale of all or substantially all of its assets due to a merger or
     acquisition. Any such prohibited assignment shall be void.

19.  HEADINGS

     This Agreement may be executed in any number of original counterparts, each
     of which when executed and delivered will be deemed to be an original and
     all of which taken together will constitute but one and the same
     instrument. Headings in this Agreement are included for convenience of
     reference only and will not constitute a part of this Agreement for any
     other purpose.

20.  INDEPENDENT PARTIES

     Nothing contained in this Agreement shall be deemed or construed to create
     a partnership or joint venture of or between PeoplePC and Ingram, or to
     create any other relationship between the parties other than that of
     independent contractors.

21.  TERM AND TERMINATION

     This Agreement will commence on the date of the last signature set forth
     below and will continue for a period of one (1) year. Either party may
     terminate this Agreement without cause, by giving ninety (90)  days advance
     written notice to the other party. Ingram may terminate this Agreement
     immediately for cause upon written notice which notice will include a ten
     (10) day opportunity to cure. This Agreement may be renewed for one-year
     terms by mutual written consent of the parties.

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                                              Ingram Micro Inc. Resale Agreement
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22.  ENTIRE AGREEMENT

     This Agreement (including any Exhibits and Addenda) constitutes the entire
     Agreement between the parties pertaining to the subject matter hereof, and
     will cancel, terminate, and supersede any and all previous agreements,
     proposals, representations, or statements, whether oral or written. The
     terms of this Agreement will supersede the terms of any purchase order
     issued by PeoplePC. Any modifications of this Agreement must be in writing
     and signed by an authorized representative of each party.

This Agreement will be effective as of the date of the last signature by the
authorized parties below.

"PeoplePC"                                   "Ingram"

By: /s/   Nick Grouf                         By: /s/ Mark Mahoney
    ------------------------------               ------------------------------
       (Officer of the Company)                     (Officer of the Company)

Name:     NICK GROUF                         Name:     MARK MAHONEY
      ----------------------------                 ----------------------------
         (Please print or type)                       (Please print or type)

Title:           CEO                         Title:       General Manager
       ---------------------------                  ---------------------------

Date:          7/29/99                       Date:             8/1/99
      ----------------------------                 ----------------------------

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     the Securities and Exchange Commission. Confidential treatment has been
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                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

                                   Exhibit A
             Volume and Service Level Commitments and Fee Schedule

1.   VOLUME AND FORECAST COMMITMENT

     In consideration for Ingram providing Products in accordance with the terms
     of this Agreement, PeoplePC agrees to make net purchases from Ingram in
     accordance with PeoplePC's rolling thirteen-week forecast ("Forecast") as
     specified herein subject to any additional Vendor restrictions and
     requirements. PeoplePC's initial Forecast is incorporated herein as Exhibit
     E hereto. PeoplePC shall provide Ingram with weekly written updates to the
     Forecast, which shall include PeoplePC's estimated requirements for the
     thirteenth week from the Forecast date. Any downward revisions in
     PeoplePC's Forecast for weeks included in the previous Forecasts will not
     relieve PeoplePC of its obligation to purchase the originally Forecast
     quantities, but only to the extent that Ingram has actually ordered such
     originally Forecast quantities and Ingram, after using commercially
     reasonable efforts, is not able to cancel or defer such orders. Ingram will
     rely on PeoplePC's Forecasts when ordering Product to fulfill PeoplePC's
     anticipated orders. PeoplePC's Forecasts shall include estimated quantities
     by region for use by Ingram in performing inventory management. Ingram
     reserves the right to revise PeoplePC's System pricing upon written
     notification if PeoplePC's total net purchases fall below fifty percent
     (50%) of PeoplePC's Forecast.

2.   INVENTORY MANAGEMENT

     Ingram will obtain a sufficient supply of Product to fulfill PeoplePC's
     Forecast. In the event Ingram does not have a sufficient supply of a
     particular System in stock to fill PeoplePC's orders, Ingram reserves the
     right to substitute another System identified in Exhibit B. In the event
     Ingram becomes aware of any anticipated shortages in material supply that
     may affect Ingram's ability to supply Product in accordance with PeoplePC's
     forecast, Ingram will make its best efforts to promptly notify PeoplePC of
     such anticipated shortages. Ingram will assign special SKUs for the Systems
     purchased by Ingram to fulfill PeoplePC's Forecast and PeoplePC's orders
     will have priority over other Ingram customer orders for those Systems.

3.   ORDER SHIPMENT COMMITMENT

     3.1  Ingram will use its best efforts to ship Products within five (5)
          business days of receipt by Ingram of PeoplePC's order. All orders
          properly transmitted and received after 2 p.m. Eastern Time, Monday
          through Friday will be considered received on the day following the
          date the order was transmitted to Ingram.

     3.2  If PeoplePC's actual orders in any single week exceed one hundred
          twenty percent (120%) of the Forecast quantity, Ingram reserves the
          right to revoke the five (5) day shipment obligation for orders in
          excess of one hundred twenty percent (120%) of the Forecast. PeoplePC
          shall provide Ingram with a minimum of three (3) weeks written notice
          prior to placing orders which will cause the total of all orders from
          PeoplePC to exceed one hundred twenty percent (120%) of the forecasted
          volume.

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                                              Ingram Micro Inc. Resale Agreement
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                                   EXHIBIT B

                                PeoplePC Pricing

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
     Components                       Toshiba                   HP Pavillion                         Compaq
----------------------------------------------------------------------------------------------------------------------
<S>                           <C>                            <C>                          <C>
Processor/Speed Chip            Intel 366 Celeron              AMD K6-2 400MHZ                  AMD K6-2 380MHZ
----------------------------------------------------------------------------------------------------------------------
Case Configuration                  Minitower                     Minitower                        Minitower
----------------------------------------------------------------------------------------------------------------------
Memory                                64mb                           64mb                             64mb
----------------------------------------------------------------------------------------------------------------------
Hard Drive                            6.0gb                         6.4gb                            8.0gb
----------------------------------------------------------------------------------------------------------------------
Floppy Drive                           Yes                           Yes                              Yes
----------------------------------------------------------------------------------------------------------------------
CD-ROM                                 40x                           32x                              32x
----------------------------------------------------------------------------------------------------------------------
Sound Card                       On Board Sound                      Yes                              Yes
----------------------------------------------------------------------------------------------------------------------
Video Card                             8mb                           4mb                              8mb
----------------------------------------------------------------------------------------------------------------------
Speakers                               N/A                           Yes                              Yes
----------------------------------------------------------------------------------------------------------------------
Fax Modem                         V.90 data/fax                    data/fax                      V.90 data/fax
----------------------------------------------------------------------------------------------------------------------
Operating System                     Win 98                         Win 98                           Win 98
----------------------------------------------------------------------------------------------------------------------
Software                            MS Works                       MS Works                         MS Works
----------------------------------------------------------------------------------------------------------------------
Mouse                               2 button                       2 button                         2 button
----------------------------------------------------------------------------------------------------------------------
Keyboard                             104 Key                       104 Key                          104 Key
----------------------------------------------------------------------------------------------------------------------
Warranty                          1 year depot                 1 yr parts only                  1 yr parts only
----------------------------------------------------------------------------------------------------------------------
Monitor                                15"                           15"                              15"
----------------------------------------------------------------------------------------------------------------------
Logo 1x1                               Yes                           Yes                              Yes
----------------------------------------------------------------------------------------------------------------------
Custom color bezel                     Yes                           Yes                  Logo - yes / Color Bezel TBD
----------------------------------------------------------------------------------------------------------------------
Load of Image                          Yes                           Yes                              Yes
----------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------
Toshiba                           PeoplePC Cost                    Freight
----------------------------------------------------------------------------------------------------------------------
Net 5                                  [*]                       UPS Ground                           [*]
----------------------------------------------------------------------------------------------------------------------
                                                                  UPS Blue                            [*]
----------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------
HP Pavillion                      PeoplePC Cost                   UPS Red                             [*]
----------------------------------------------------------------------------------------------------------------------
Net 5                                  [*]                      Fed Ex 2 day                          [*]
----------------------------------------------------------------------------------------------------------------------
                                                               Fed Ex Standard                        [*]
----------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------
Compaq                            PeoplePC Cost                Fed Ex Priority                        [*]
----------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------
Net 5                                  [*]
----------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------
                                      Returns*               Servicenet Warranty
----------------------------------------------------------------------------------------------------------------------
                                       [*]                      [*] per unit
----------------------------------------------------------------------------------------------------------------------
                              *excludes openbox & DOA
----------------------------------------------------------------------------------------------------------------------
</TABLE>

________________________________________________________________________________
                                    Page 10
                                                                    Confidential

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

<PAGE>

                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

                                   EXHIBIT C

                     DOCUMENTATION REQUIREMENTS FOR DEBITS

Short Shipment/Mis-Shipment/Lost Shipment    Returns
-----------------------------------------    -------

Invoice number                               Ingram return authorization (RMA #)
Invoice date                                 Ingram part number(s)
Ingram part number(s)                        Product description
Product description                          Quantity per unit
Quantity short (per sku)                     Price per unit
Extended total                               Extended total

Pricing                                      Freight
-------                                      -------

Invoice number                               Invoice number
Invoice date                                 Invoice date
Ingram part number(s)                        Extended amount
Product description                          Comprehensive explanation for non-
Bill price vs. PO price (per sku)            payment
Extended total

Return Discrepancies
--------------------
Ingram return authorization (RMA #)
Ingram part number(s)
Product description
Quantity per unit
Price per unit
Extended total
Proof of Delivery
Shipper
Tracking Information

________________________________________________________________________________
                                    Page 11
                                                                    Confidential
<PAGE>

                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

                                   EXHIBIT D
                                   ---------

                    INGRAM MICRO STANDARD RETURN GUIDELINES
                    ---------------------------------------

Return guidelines:

1.   PeoplePC's account must be current and in good standing.

2.   An RMA number must be obtained from Ingram's Customer Service Department
     prior to shipping. PeoplePC will furnish Ingram with account name, account
     number, Ingram part number and Product description.

3.   RMA numbers for domestic returns are valid thirty (30) days from issuance.

4.   Stock balance Product must be in Resalable Condition (without price tags,
     clean, unopened, undamaged, unused and complete) and be in the
     manufacturer's original packaging. Credit will be issued for cost of
     Product in the amount of PeoplePC's most recent purchase or the current
     price, whichever is lower, and can be applied toward future purchases.

5.   Product will be shipped freight-prepaid.

6.   Shipping labels must be used on the cartons being returned. The RMA number
     must be written on the shipping label and the label placed on the carton.
     Addresses or RMA numbers must not be written on the outside of
     manufacturer's boxes.

7.   Multiple RMA numbers cannot be combined in one container. Defective and
     stock balance returns must be shipped separately. All price labels must be
     removed before shipping.

8.   PeoplePC must provide Ingram with a purchase order number and pay return
     freight for Product sent to, but not approved for return by, Ingram.

9.   PeoplePC agrees to reverse any debits for unauthorized returns within ten
     (10) days of notification from Ingram.

________________________________________________________________________________
                                    Page 12
                                                                    Confidential
<PAGE>

                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

                                   EXHIBIT E

                               PeoplePC Forecast

<TABLE>
<CAPTION>
----------------------------------------------------------------------------
Week       Date      West     Central    East     Total Systems  Cumulative
                                                                  Systems
----------------------------------------------------------------------------
<S>       <C>       <C>       <C>       <C>       <C>            <C>
  1       19-Jul      [*]       [*]       [*]           [*]          [*]
----------------------------------------------------------------------------
  2       26-Jul      [*]       [*]       [*]           [*]          [*]
----------------------------------------------------------------------------
  3       2-Aug       [*]       [*]       [*]           [*]          [*]
----------------------------------------------------------------------------
  4       9-Aug       [*]       [*]       [*]           [*]          [*]
----------------------------------------------------------------------------
  5       [*]         [*]       [*]       [*]           [*]          [*]
----------------------------------------------------------------------------
  6       [*]         [*]       [*]       [*]           [*]          [*]
----------------------------------------------------------------------------
  7       [*]         [*]       [*]       [*]           [*]          [*]
----------------------------------------------------------------------------
  8       [*]         [*]       [*]       [*]           [*]          [*]
----------------------------------------------------------------------------
  9       [*]         [*]       [*]       [*]           [*]          [*]
----------------------------------------------------------------------------
 10       [*]         [*]       [*]       [*]           [*]          [*]
----------------------------------------------------------------------------
 11       [*]         [*]       [*]       [*]           [*]          [*]
----------------------------------------------------------------------------
 12       [*]         [*]       [*]       [*]           [*]          [*]
----------------------------------------------------------------------------
 13       [*]         [*]       [*]       [*]           [*]          [*]
                    ------    ------    ------       -------
----------------------------------------------------------------------------
Total                 [*]       [*]       [*]           [*]
----------------------------------------------------------------------------
</TABLE>

________________________________________________________________________________
                                    Page 13
                                                                    Confidential

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

<PAGE>

                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

                                   EXHIBIT F

                Sales Terms and Conditions (as of July 19, 1999)

Ingram Micro Inc. ("Seller") agrees to supply and Purchaser agrees to purchase
products described in Seller's current comprehensive product listing, including
products which have been configured to Purchaser's specifications ("Configured
Products"), subject to these terms and conditions, which shall supersede any
terms and conditions on any purchase order form submitted to Seller by
Purchaser. All products, including Configured Products, are hereinafter referred
to as "Product" or "Products". These terms and conditions shall apply to all
Products purchased by Purchaser from Seller for delivery to an address (other
than a freight forwarder's address) within the United States, excluding its
Territories. Unbranded products purchased from Frameworks(TM) Total Integration
Services ("Frameworks(TM)") are not subject to these terms and conditions but
shall be subject to the Frameworks(TM) Sales Terms and Conditions.

1.   SHIPMENT AND DELIVERY

Delivery will be made F.O.B. origin, freight paid in accordance with Seller's
standard freight policy in effect at the time of shipment. Seller will comply
with all reasonable shipping and handling instructions received prior to
shipment. In the event Purchaser requests shipment not in accordance with
Seller's Standard Freight Policy, Purchaser will bear the cost of all freight
and handling. Seller may charge, and Purchaser shall pay, a special handling fee
for any shipment less than $300 in value. COD fees may also apply.

Purchaser shall examine all Products promptly upon receipt thereof. No later
than thirty (30) days after receipt, Purchaser shall notify Seller of all
claimed shortages or damaged Products or if rejection is intended, shall specify
all grounds therefor. Failure to give such notice shall be deemed an acceptance
of the Products as of the date of shipment.

2.   CREDIT AND PAYMENT TERMS

Purchaser shall furnish to Seller all financial information reasonably requested
by Seller from time to time for the purpose of establishing or continuing
Purchaser's credit limit, it being understood that Seller shall have the right
to decline to extend credit to Purchaser and to require that the applicable
purchase price be paid prior to shipment. Seller shall have the right from time
to time, without notice, to change or revoke Purchaser's credit limit on the
basis of changes in Seller's credit policies or Purchaser's financial condition
and/or payment record.

Payment terms for each shipment of Products shall be as stated on Seller's
invoice. A service charge of the lesser of one and one-half percent (1 1/2%) per
month or the maximum amount allowed by law will be charged on all past due
balances to defray Seller's costs of carrying such balance. Credit cards
(MasterCard, VISA and Discover Card) will only be accepted at the time of order
or purchase. Payment for all other orders must be made in accordance with the
terms in effect at the time the order was placed. Seller will not accept money
orders or travelers checks as payment unless they are made out in the exact
amount of an outstanding invoice. Payment of an invoice through multiple money
orders or travelers checks will not be accepted.

In the event Purchaser fails to make timely payment of any amount invoiced
hereunder, Seller shall have the right, in addition to any and all other rights
and remedies available to Seller, at law or in equity, to immediately revoke any
or all credit extended, to delay or cancel future deliveries and/or to reduce or
cancel any or all quantity discounts extended to Purchaser. Purchaser shall pay
all costs of collection, including reasonable attorneys' fees.

________________________________________________________________________________
                                    Page 14
                                                                    Confidential
<PAGE>

                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

                             EXHIBIT F (continued)

Any obligation of Seller under these terms and conditions to deliver Products on
credit terms shall terminate without notice if Purchaser files a voluntary
petition under a bankruptcy statute, or makes an assignment for the benefit of
creditors, or if an involuntary petition under a bankruptcy statute is filed
against Purchaser, or if a receiver or trustee is appointed to take possession
of the assets of Purchaser.

3.   TAXES

Purchaser shall bear applicable federal, state, municipal, and other government
taxes (such as sales, use, etc.). Unless otherwise specified, list prices do not
include such expenses, and they will appear, if applicable, as separate,
additional items on the invoice. Exemption certificates, valid in the place of
delivery, must be presented to Seller prior to shipment if they are to be
honored.

4.   WARRANTY

Product warranties, if any, are provided by the manufacturer or publisher of the
Products. Seller makes no warranties whatsoever. Seller's sole obligation (and
Purchaser's sole remedy) in the event of breach of any warranty shall be the
repair or replacement of defective Products.

IN NO EVENT SHALL SELLER BE LIABLE FOR ANY CONSEQUENTIAL DAMAGES OR DAMAGES OF
ANY KIND OR NATURE ALLEGED TO HAVE RESULTED FROM ANY BREACH OF WARRANTY. SELLER
DOES NOT WARRANT THE MERCHANTABILITY OF THE PRODUCTS OR THEIR FITNESS FOR ANY
PARTICULAR PURPOSE. SELLER MAKES NO WARRANTY, EXPRESS OR IMPLIED, OTHER THAN
THOSE SPECIFICALLY SET FORTH HEREIN.

5.   STOCK BALANCING

Purchaser must obtain a valid Return Material Authorization ("RMA") number from
Seller for all returns. Seller may grant Purchaser a RMA for Products purchased
from Seller within one hundred fifty (150) days of invoice date for credit
against future purchases by Purchaser; provided that the total purchase price of
all such returns shall not exceed fifteen percent (15%) of all purchases during
the ninety (90) days preceding the request to return the Products. All Products
returned must be in the manufacturer's original packaging and in resalable
condition (including, but not limited to, without price tags, clean, undamaged,
unused, unopened and complete). Notwithstanding anything to the contrary, Seller
reserves the right not to authorize the return of Products which are: (i) no
longer in production; (ii) being produced or published by a manufacturer or
publisher which is insolvent, has declared bankruptcy, or will not accept
returns from Seller; or (iii) subject to more restrictive stock balancing
policies issued by the Product's manufacturer or publisher. Purchaser shall pay
all costs and bear all risks of loss when returning Products to Seller.
Configured Products may not be stock balanced.

6.   DEFECTIVE RETURNS

Purchaser must obtain a valid Return Material Authorization ("RMA") number from
Seller for all returns. Subject to the manufacturer's or publisher's warranty
requirements and restrictions, Seller may grant Purchaser a RMA for defective
Products purchased from Seller for replacement

________________________________________________________________________________
                                    Page 15
                                                                    Confidential
<PAGE>

                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

                             EXHIBIT F (continued)

or credit against future purchases by Purchaser. All defective Products except
for Configured Products, mass storage and branded memory Products must be
returned to Seller within ninety (90) days of invoice date. Defective Configured
Products, mass storage and branded memory Products must be returned to Seller
within thirty (30) days of invoice date. Seller may return to Purchaser, at
Purchaser's expense, any Products found not to be defective. Seller reserves the
right to require Purchaser to return defective Products directly to the
Products' manufacturer or publisher for replacement according to the
manufacturer's or publisher's defective Products return policy.

Seller shall not be obligated to repair or replace Products rendered defective,
in whole or in part, by causes external to the Products, including, but not
limited to, catastrophe, power failure or transients, overvoltage on interface,
environment extremes, improper use, maintenance and application of the Products
or use of unauthorized parts.

7.   PATENT AND TRADEMARK INDEMNITY

SELLER SHALL HAVE NO DUTY TO DEFEND, INDEMNIFY, AND HOLD HARMLESS PURCHASER FROM
AND AGAINST ANY OR ALL DAMAGES AND COST INCURRED BY PURCHASER ARISING FROM THE
INFRINGEMENT OF PATENTS OR TRADEMARKS OR THE VIOLATION OF COPYRIGHTS BY
PRODUCTS.

NOTWITHSTANDING ANY OTHER TERMS OR CONDITIONS TO THE CONTRARY, SELLER'S
LIABILITY UNDER THIS SECTION SHALL NOT EXCEED THE PURCHASE PRICE OF THE
INFRINGING PRODUCT.

8.   LIMITATION OF LIABILITY

SELLER SHALL NOT BE LIABLE TO PURCHASER, PURCHASER'S CUSTOMERS, OR ANY OTHER
PARTY FOR ANY LOSS, DAMAGE, OR INJURY WHICH RESULTS FROM THE USE OR APPLICATION
BY PURCHASER, PURCHASER'S CUSTOMER, OR ANY OTHER PARTY OF, PRODUCTS DELIVERED TO
PURCHASER, UNLESS THE LOSS OR DAMAGE RESULTS DIRECTLY FROM THE INTENTIONALLY
TORTIOUS OR FRAUDULENT ACTS OR OMISSIONS OF SELLER. IN NO EVENT SHALL SELLER BE
LIABLE TO PURCHASER OR ANY OTHER PARTY FOR LOSS, DAMAGE, OR INJURY OF ANY KIND
OR NATURE ARISING OUT OF OR IN CONNECTION WITH THESE TERMS AND CONDITIONS, OR
ANY AGREEMENT INTO WHICH THEY ARE INCORPORATED, OR ANY PERFORMANCE OR
NONPERFORMANCE UNDER THESE TERMS AND CONDITIONS BY SELLER, ITS EMPLOYEES, AGENTS
OR SUBCONTRACTORS, IN EXCESS OF THE NET PURCHASE PRICE OF THE PRODUCTS ACTUALLY
DELIVERED TO AND PAID FOR BY PURCHASER HEREUNDER. IN NO EVENT SHALL SELLER BE
LIABLE TO PURCHASER OR ANY OTHER PARTY FOR INDIRECT, SPECIAL OR CONSEQUENTIAL
DAMAGES, INCLUDING, BUT NOT LIMITED TO LOSS OF GOOD WILL, LOSS OF ANTICIPATED
PROFITS, OR OTHER ECONOMIC LOSS ARISING OUT OF OR IN CONNECTION WITH SELLER'S
BREACH OF, OR FAILURE TO PERFORM IN ACCORDANCE WITH ANY OF THESE TERMS AND
CONDITIONS, OR THE FURNISHING, INSTALLATION, SERVICING, USE OR PERFORMANCE OF
ANY PRODUCTS SELLER SHALL PROVIDE HEREUNDER, EVEN

________________________________________________________________________________
                                    Page 16
                                                                    Confidential
<PAGE>

                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

                             EXHIBIT F (continued)

IF NOTIFICATION HAS BEEN GIVEN AS TO THE POSSIBILITY OF SUCH DAMAGES. PURCHASER
HEREBY EXPRESSLY WAIVES ANY AND ALL CLAIMS FOR SUCH DAMAGES. IN NO EVENT SHALL
SELLER HAVE ANY LIABILITY FOR ANY PRODUCTS USED FOR AVIATION, MEDICAL,
LIFESAVING, LIFE SUSTAINING OR NUCLEAR APPLICATIONS.

9.   RESALE ONLY

All Products delivered to Purchaser hereunder are for resale only.

10.  COMPLIANCE WITH U.S. EXPORT LAWS

The Products are sold to Purchaser for resale only in the United States,
excluding its Territories. In the event Purchaser delivers the Products to a
customer who may use the Products outside the United States, Purchaser
acknowledges, and shall advise its customer that the Products are controlled for
export by the U.S. Department of Commerce and that the Products may require
authorization prior to export from the United States or re-export. Purchaser
agrees that it will not export, re-export, or otherwise distribute Products, or
direct products thereof, in violation of any export control laws or regulations
of the United States. Purchaser warrants that it will not export or re-export
any Products with knowledge that they will be used in the design, development,
production, or use of chemical, biological, nuclear, or ballistic weapons, or in
a facility engaged in such activities, unless Purchaser has obtained prior
approval from the Department of Commerce. Purchaser further warrants that it
will not export or re-export, directly or indirectly, any Products to embargoed
countries, including, but not limited to, Cuba, Libya, North Korea, Iran, Iraq,
Sudan and Syria. Diversion of Products contrary to U.S. law is prohibited.

11.  MANUFACTURER AND PUBLISHER RESTRICTIONS

All Products delivered to Purchaser hereunder may have additional restrictions
on their use required by the manufacturer or publisher. Purchaser is solely
responsible for ensuring its adherence to any and all such restrictions or
requirements.

12.  CALIFORNIA LAW

These terms and conditions (and any agreement into which they are incorporated)
shall be interpreted in accordance with and governed by the laws of the State of
California and Seller and Purchaser hereby consent to the jurisdiction of the
California courts.

13.  NOTICES

All notices, requests, demands and other communications called for or
contemplated hereunder shall be in writing and shall be deemed to have been duly
given when delivered or two (2) days after mailing by U.S. certified or
registered first-class mail, prepaid, and addressed to the parties at their
principal place of business or at such other addresses as the parties may
designate by written notice.

________________________________________________________________________________
                                    Page 17
                                                                    Confidential
<PAGE>

                                              Ingram Micro Inc. Resale Agreement
--------------------------------------------------------------------------------

                             EXHIBIT F (continued)

14.  ASSIGNMENT

Purchaser shall not assign any order or any interest therein without the prior
written consent of Seller. Any such actual or attempted assignment without
Seller's written consent shall entitle Seller to cancel such order upon written
notice to Purchaser.

15.  SEVERABILITY

A judicial determination that any provision hereunder is invalid in whole or in
part shall not affect the enforceability of those provisions not found to be
invalid.

16.  CAPTIONS

The captions used herein are for reference purposes only and shall have no
effect upon the construction or interpretation of any provisions herein.

17.  GENERAL

These terms and conditions may be amended from time to time, without notice and
at Seller's sole discretion. Please consult the Ingram website at
www.ingrammicro.com for the most current version of these teams and conditions.

*Sales terms and conditions are subject to change.

________________________________________________________________________________
                                    Page 18
                                                                    Confidential<PAGE>

                                                                   EXHIBIT 10.14

                               Ingram Micro Inc.
                          1600 East St. Andrew Place
                          Santa Ana, California 92705

April 20, 2000

Nick Grouf
Chief Executive Officer
PeoplePC, Inc.
100 Pine Street, Floor 11
San Francisco, California 94111

Subject:  PeoplePC/Ford Alpha Roll-out

Dear Nick:

This Letter of Understanding ("LOU") is executed by and between Ingram Micro
Inc. ("Ingram") and PeoplePC, Inc. ("PeoplePC") as of the date set forth above.
This LOU sets forth the terms and conditions under which Ingram will sell
certain Hewlett-Packard ("H-P") computer systems and related products to
PeoplePC in connection with People PC's Hewlett-Packard product alpha roll-out
to Ford Motor Company ("Ford").  Ingram and PeoplePC agree as follows:

     1.  Products Sold.  Ingram will sell to PeoplePC the computer systems and
     products in the quantity and type specified on the purchase order issued
     from PeoplePC to Ingram and dated as of April 6, 2000, a copy of which is
     attached to this LOU as Attachment A (the "PO").  The computer systems and
     related products in the type and quantity specified on the PO are
     collectively referred to herein as the "Products."  Except to the extent
     permitted pursuant to Paragraph 2 below, the PO is noncancellable; no act
     or failure to act by Ford or any other party shall relieve PeoplePC of its
     obligation to buy the Products.

     2.  Delivery Date.  Ingram expects to take delivery of the Products from H-
     P no later than April 28, 2000.  Ingram shall have no obligation to deliver
     timely to PeoplePC any portion of the Products not timely delivered by H-P
     to Ingram.

     3.  Cost of Products.  Ingram shall sell the Products to PeoplePC, and
     People PC shall purchase the Products from Ingram, for an amount equal to
     [*].  As used in this LOU, [*].

     4.   Payment Terms.  PeoplePC is obligated hereby to remit payment in full
     to Ingram for all of the Products, whether or not the Products or any part
     thereof are sold to

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

<PAGE>

April 20, 2000
Page 2

     a PeoplePC customer. Payment for the Product(s) and any shipping, freight
     or storage or returned or refused Product charge, as the case may be, shall
     be due upon the earliest of the following: (i) five (5) days from the date
     Ingram provides PeoplePC with an invoice reflecting shipment of the
     Product(s) to a People PC customer(s), or five (5) days from the date
     Ingram provides an invoice reflecting such shipping, freight or storage or
     returned or refused product charge, as they case may be, or, (ii) in the
     case of the Products, May 28, 2000.

     5.  Labels.  Ingram shall place labels provided by PeoplePC on the shipping
     containers of each Product before shipping the Product to PeoplePC's
     customer; provided that, PPC delivers all such labels in sufficient
     quantity to Ingram within five days following the date of this LOU.

     6.  Shipping and Freight Charges.  Ingram shall ship the Products to
     locations specified by PeoplePC within the United States, excluding Alaska
     and Hawaii.  Ingram shall ship the Products via UPS ground freight, unless
     another carrier is specified by PeoplePC in writing prior to shipment.
     Ingram shall invoice PeoplePC [*].

     7.  Storage Charges.  Ingram shall invoice PeoplePC for all Product
     remaining in Ingram's inventory on May 28, 2000 and PeoplePC shall pay to
     Ingram that amount within five days of receipt of the invoice.  In
     addition, PeoplePC shall pay a storage fee equal to [*] per month for each
     Product held by Ingram in its inventory for each month or part thereof
     following May 28, 2000.

     8.  Returned and Refused Products.  Ingram shall accept Product that is
     refused or that is returned to it by a PeoplePC customer, but People PC
     shall incur a returns handling fee of [*] per system and [*] per other
     Product unit for each such Product so refused or returned.  Ingram shall
     hold all such Product in inventory pending further instruction by PeoplePC.
     All such returned or refused Product held in Ingram's inventory shall be
     subject to the storage fee described in Paragraph 7 above. Ingram shall not
     be required to re-box a Product returned to it. Ingram shall have no
     obligation to repair or replace, or reimburse PeoplePC for, any Products
     that are found to be defective or not in accordance with specifications
     provided by H-P. PeoplePC shall return defective or non-conforming Products
     to H-P directly.

     9.  Terms of Sale.  The Products sold hereby are subject to Ingram's
     standard terms and conditions of sale as published on its website at
     www.ingrammicro.com.  However, to the extent that any of the terms and
     -------------------
     conditions of this LOU conflict with Ingram's standard terms and conditions
     of sale, the terms and conditions stated in this LOU shall control.  The PO
     shall be used to identify product type and quantity only and none of its
     terms shall affect the terms of sale as set forth herein or affect Ingram's
     standard terms and conditions of sale.

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

<PAGE>

April 20, 2000
Page 3

     10.  Reservation of Rights; No Waiver or Compromise.  Nothing in this LOU
     or the transaction contemplated hereby shall in any way limit or affect
     People PC or Ingram's rights under that certain Internet Resale Agreement
     between PeoplePC and Ingram dated as of August 1, 1999.  People PC and
     Ingram specifically reserves all of its rights and remedies under and in
     connection with the Internet Resale Agreement.  The parties acknowledge
     that any disputes with respect to the Internet Resale Agreement are not
     waived, compromised or otherwise affected by this LOU or the transaction
     contemplated hereby.

     11.  Entire Agreement.  This LOU and Ingram's standard terms and conditions
     of sale represent the entire agreement between Ingram Micro and PeoplePC
     concerning the subject matter of this transaction. This LOU supersedes all
     prior understandings and communications on the subject matter of this
     transaction, whether oral or written.  This LOU may only be modified by a
     writing executed by an authorized representative of Ingram Micro and of
     PeoplePC.

If PeoplePC is in full agreement with the terms and conditions stated herein,
please sign the enclosed copy of this letter and return it to me.

Yours sincerely,

/s/ Mark Mahoney
----------------
Mark Mahoney
Vice President

Accepted this 20th day of April 2000.

PeoplePC, Inc.

By:     /s/ Nick Grouf
    ----------------------
            Nick Grouf

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

<PAGE>

<TABLE>
<CAPTION>
                                                                    --------------------------------------------------------------
                     PEOPLE PC

             100 Pine Street Suite 1100

               San Francisco, CA 94111                              ---------------------------------------------------------------
                                                                       THIS NUMBER MUST APPEAR ON ALL INVOICES, PACKING SLIPS
          Phone: 415-732-4400 Fax: 415-837-3857                        AND SHIPPING DOCUMENTS PERTAINING TO THIS ORDER.

                 www.peoplepc.com                                      SHIP ACCORDING TO THE PERMANENT ROUTING
                                                                       INSTRUCTIONS ON FILE WITH YOUR COMNPANY. IF NOT ON FILE,
                                                                       CONTACT US AT (415)732-4400.
                                                                    ---------------------------------------------------------------
                                                                                         IMPORTANT DATES
                                                                    ---------------------------------------------------------------
                                                                      ORDER DATE  April 6, 2000        SHIP TO ARRIVE ON

                                                                    ---------------------------------------------------------------
                                                                                                       ----------------------------
                                                                                                          RESALE MERCHANDISE:
                                                                                                            []YES     []NO
-----------------------------------------------------------------------------------------------------------------------------------
                                                                     ORDER CANCELLED AS OF:               SHIP BACKORDERS:
                                                                                                            []YES     []NO
 SHIP VIA______________________   []COLLECT    []PREPAID

-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>         <C>                                                                    <C>             <C>
  QUANTITY    UNIT                                   DESCRIPTION                                  UNIT PRICE      TOTAL PRICE
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 930680 Desk Top Kit for Laptop                            $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 930651 - Omni book Premium (Laptop) F2027WT#ABA           $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 930652 - Omni book Ultimate (Laptop) F2028WT#ABA          $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 529544 - Desk top CPU - Basic                             $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 529543 - Desk top CPU - Basic Plus                        $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 529542 - Desk top CPU - Premium                           $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 529541 - Desk top CPU - Ultimate                          $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 117321 - Printer HPLJ1100AXI                              $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 117245 - Printer Office Jet T45XI                         $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 117273 - Printer Desk Jet 930C                            $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 117287 - Printer Desk Jet 610CL                           $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 368771 - S50 15" Monitor                                  $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 368774 - M70 17" Monitor                                  $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------
100                       Ingram SKU # 368773 - M90 19" Monitor                                  $  [*]          $   [*]
------------------------------------------------------------------------------------------------------------------------------------

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

------------------------------------------------------------------------------------------------------------------------------------
SPECIAL INSTRUCTIONS:                                                                  TOTAL                         [*]
                                                                                    ================================================

                                                                                      Order Placed By: Randy Allen

------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
   PEOPLEPC, INC.
---------------------------------------------------------                  ---------------------------------------------------------
 Typed or printed name of Vendor                                            Address of Vendor

    /s/ NICHOLAS A GROUF
---------------------------------------------------------                  ---------------------------------------------------------
 Signature of person signing for Vendor

           NICHOLAS A GROUF
---------------------------------------------------------                  ---------------------------------------------------------
 Typed or printed name of person signing                                    Date of signature of Vendor
</TABLE>

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

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