Document:

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                        CONFIDENTIAL TREATMENT REQUESTED

[*] Denotes information for which confidential treatment has been requested
pursuant to a confidential treatment request filed with the Securities and
Exchange Commission. Confidential portions omitted have been filed separately
with the Commission.

                                                                 Exhibit 10.14

                          INTRAWARE SERVICES AGREEMENT

         This SERVICES AGREEMENT is made and entered into to be effective as
of July 1, 1999 (the "Effective Date") between Sun Microsystems, Inc.
("Sun"), a Delaware corporation with offices at 901 San Antonio Road, Palo
Alto, CA 94303, and Intraware Inc., a Delaware corporation ("Intraware"),
with offices at 25 Orinda Way, Orinda California 94563.

         WHEREAS, Sun is in the business of developing and offering for sale
certain software products and related support services;

         WHEREAS, Intraware is in the business of developing and offering for
sale worldwide proactive software update and management services to and users
through its SubscribNet-Registered Trademark- service; and

         WHEREAS, Sun desires to obtain, and Intraware desires to provide,
worldwide subscriptions of Intraware's SubscribNet-Registered Trademark- to
Non-consumer Customers of Sun (as defined below):

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

                                    ARTICLE 1
                                   DEFINITIONS

         For purposes of this Agreement terms used and not otherwise defined
herein shall have the following meanings:

         "AGREEMENT" OR "THIS AGREEMENT" shall mean this Services Agreement and
the following attachments:

         Attachment A               Web Site General Terms

         Attachment B               User Registration and Privacy

         Attachment C               Escrow Agreement

         Attachment D               Trademark Guidelines

         "CHANNEL DISTRIBUTOR" shall mean any Sun authorized distributor or
reseller of Sun Products, or any Sun authorized distributor or reseller of Third
Party Products on behalf of Sun, other than Intraware, who has purchased a
license from Sun to sell such Sun and Third Party Products.

         "CONFIDENTIAL INFORMATION" shall mean this Agreement and all
information about Intraware Products and Sun Products, as well as Intraware and
Sun services, customers, strategy, research.

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development, methods of manufacture, trade secrets, business plans, finances,
personnel data, and other material or Information considered confidential by
either party. Confidential information also includes any third party
confidential information disclosed to either party under this Agreement.

         "END USERS" shall mean all Non-consumer Parties who have a Sun
maintenance subscription for their license to use Sun Products which they
acquired from Sun or a Channel Distributor, as well as all Non-consumer Parties
who obtain a maintenance subscription to Third Party Products for which they
currently own a license through Sun or a Channel Distributor.

         "EVENT OF DEFAULT" shall have the meaning contained in Section 9.1.

         "INTRAWARE CUSTOMER" shall mean any party who receives any product or
service directly or indirectly from Intraware or its non-Sun partners or who
becomes an Intraware Customer under Section 2.7.

         "INTRAWARE PRODUCTS" shall mean any Intraware software that
Intraware will use in connection with the Services, including, without
limitation, its SubscribNet-Registered Trademark- products, and any major and
minor updates or functional supersets to any such products to the extent such
products do not incorporate data received by Intraware in providing the
services, as defined below.

         "SUN CUSTOMER DATA" shall have the meaning set forth in Section 2.7.

         "SUN PRODUCTS" shall mean all current, commercially available software
products provided by Sun to Intraware and listed in the then-current
Sun-Netscape Alliance price books for the Territory (Price Books) excluding
Third Party Products as defined below. If at any time during the Term, Sun
sells, assigns or otherwise transfers its right to distribute directly or
through Channel Distributors any such products listed on the applicable Price
Books, such Sun products shall cease to be "Sun Products" under this Agreement.

         "SUN UPDATES" shall mean major and minor updates, if any, or any
functional supersets, to the Sun Products or to Third Party Products. "Major
Updates" involve additions of substantial functionality while "Minor Updates" do
not. Major Updates are designated by a change in the number to the left of the
decimal point of the number appearing after the product name while Minor Updates
are designated by a change in such number to the right of the decimal point.
Minor Updates shall also include bug patches and bug fixes as mutually agreed
upon. Sun is the sole determiner of the availability and designation of an
update as a Major or Minor Update. Major Updates exclude software releases which
are reasonably designated by Sun as new products. Where used herein, "Sun
Updates" shall mean Major Updates and Minor Updates interchangeably.

         "SUN WEB SITE" shall mean the collection of Local Language HTML
documents targeted at end users in the Territory and currently accessible by the
public via the Internet at the URL for the Sun-Netscape Alliance and/or at such
other URL or locations as Sun may designate. Sun's Web Site does not include any
future technologies or future uses of existing technologies which might embody a
collection of documents (other than HTML documents) on the Internet.

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         "NON-CONSUMER CUSTOMER / NON-CONSUMER PARTY" shall mean any party or
customer who licenses 10 or more copies and/or seats of a Sun client product, or
a purchaser of any other Sun Product.

         "SERVICES" shall mean the services to be provided by Intraware in
accordance with Article 2, Article 4.

         "SUBSCRIBNET" shall mean Intraware's software subscription update
service for Non-consumer Customers.

         "SUBSCRIBNET UPDATES" shall mean enhancements to SubscribNet.

         "SUBSCRIPTION" shall mean an offering by Sun of SubscribNet that
entitles End Users, upon entering into a maintenance agreement with Sun, to
receive Sun Updates for the number of users for which each such End User has
received a license to a Sun or Third Party Product.

         "TERRITORY" shall mean worldwide.

         "THIRD PARTY PRODUCTS" shall mean all third party vendor products
currently distributed by Sun, or by a Channel Distributor from the worldwide
price book for the Sun-Netscape Alliance, as of the Effective Date, which is
provided by Sun to Intraware under this Agreement. If at any time during the
Term, Sun sells, assigns, ceases selling or otherwise transfers its right to
distribute directly or through Channel Distributors products form any third
party vendor in the Price Books for the Sun-Netscape Alliance such vendor's
products shall cease to be "Third Party Products" under this Agreement.

                                    ARTICLE 2
                                    SERVICES

         2.1 GENERAL. Intraware shall perform the Services in accordance with
the terms and conditions set forth herein only for such Sun Products. Sun
reserves the right from time to time to exclude from the Services any particular
Sun Product, in each case upon consideration of such factors as the ease and
quality of electronic download or customer preferences. The Service will not be
disadvantaged, in terms of features, functionality and programming, as the
private label SubscribNet services that Intraware makes available to other
customers.

         2.2 [*] However, Sun reserves the right to for Sun or its strategic
third party working through the Sun-Netscape Alliance provide for itself
services similar to the Service.

         2.3 TERMS OF DISTRIBUTION. Sun and Intraware shall offer the
Subscription to End Users through Sun's maintenance agreement, and as soon as
practicable after the Effective Date such agreement will clearly state on behalf
of each party and for the benefit of Channel Distributors that maintenance
includes the SubscribNet service. End Users will be able to access the Services
through

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the Sun Web Site through a URL to be mutually agreed, however, the URL will
include a Sun domain for the Sun-Netscape Alliance. The Service may also be
accessed through other URLs on Sun's Web Site, URLs contained in email
notifications and/or through such other sites within Sun's Web Site as Sun
may specify from time to time. For reporting purposes, all traffic on the
site shall be considered to be Sun traffic, however, Intraware may use
aggregated traffic data for the purposes of this Agreement and as directed by
the Sun contact person identified at paragraph 16.12 below.

         2.4 SUBSCRIBNET UPDATES. [*] Such SubscribNet Updates will be
distributed in the same manner as the Services are distributed under this
Agreement.

         2.5 PERSONNEL. Each party shall provide adequate resources to assure
its performance under this Agreement. Towards this goal, the parties will
designate the resources set forth in this Section 2.5.

                  (A) SUN PERSONNEL. Sun will designate an Operations Program
Manager for the implementation of this Agreement and to insure the success of
the Services. Sun will further designate a marketing representative to approve
content and other marketing related issues.

                  (B) INTRAWARE PERSONNEL. Intraware will assign a dedicated
Operations Program Manager for the implementation of this Agreement and to
insure the success of the Services. Intraware will further assign a dedicated
marketing representative to approve content and other marketing related issues.

         2.6 MONTHLY REVIEWS. During the Initial Term, Sun and Intraware shall
meet to conduct monthly reviews at Intraware's and Sun's primary business
addresses in alternating order to discuss and adjust metrics and performance and
to coordinate management information systems or other operational processes
arising out of this Agreement. Each party will bear its own travel or other
costs associated with attending any such meetings. In any renewal Term, the
parties shall mutually agree upon the frequency and scope of periodic reviews.

         2.7      END USER DATA:

                  (A) Except as expressly provided in this subparagraph (A),
all customer data, including channel transaction data, added to the
Sun/SubscribNet Service or existing other data provided by Sun in connection
therewith on the date hereof will be considered Sun data ("Sun Customer
Data") and shall be solely owned by Sun, and [*]. If a Sun customer is also,
independently, an Intraware Customer, and requests that its account be
handled through Intraware, [*] such customer data shall be owned jointly by
Intraware and Sun. All such data shall constitute "Confidential Information"
and shall be subject to the end user and privacy guidelines set forth in
ATTACHMENT B.

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                  (B) Intraware will implement procedures reasonably acceptable
to Sun, and use reasonable commercial efforts, to distinguish channel
transaction data files between Sun Customers and Intraware Customers.

                  (C) [*]

         2.8 THIRD PARTIES. Notwithstanding anything in this Agreement to the
contrary, Intraware may perform Services hereunder for Third Party Products only
if and to the extent Sun is authorized to enable electronic download of Third
Party Products. The parties may mutually agree whether and the terms upon which
additional third party vendor products shall be added to the definition of
"Third Party Products" under this Agreement.

         2.9 CHANNEL DISTRIBUTORS. Notwithstanding anything in this Agreement to
the contrary, Sun's arrangements with its Channel Distributors may not permit
Intraware to electronically distribute Sun Products, in which case such
arrangement shall be excluded from the Services. In addition, Sun shall be
obligated to provide Intraware with information or access to Third Party data or
information hereunder only to the extent authorized by each Channel Distributor.

         2.10 END USERS. Should a Non-consumer Party obtain a license to a Third
Party Product through Sun or a Channel Distributor after the Effective Date, and
should such Non-consumer Party wish to acquire a maintenance subscription from
Sun or a Channel Distributor to receive the SubscribNet services, upon approval
by Intraware and receipt by Intraware of [*] (or such other percentage and terms
as the parties may agree) of the "net Subscription sales price" from Sun for
each such Non-consumer Party, such additional Non-consumer Party will become an
End User. "Net Subscription sales price" means the price indicated in an invoice
for any sale of a Sun Product, i.e., the gross sales price less applicable
discounts, but excluding rebates, if any.

         2.11 REPORTING/ACCESS. Sun will have full access to the systems data
records, and such records will be reasonably compatible with Sun systems.
Intraware will provide Sun with an online and flexible direct interface to this
data through a reporting tool.

                                    ARTICLE 3
                              TERM AND TERMINATION

         3.1 TERM. Unless sooner terminated in accordance with this Article or
Article 9 (Default), the term of this Agreement (the "Term") shall commence on
the Effective Date and shall continue for a period ending on September 30, 2000.

                  (A) If prior to the expiration of the Term, Sun, by written
notice to Intraware, elects to renew this Agreement for an additional term,
but the parties fail to mutually agree upon renewal after the initial Term,
then Intraware shall be obligated to continue to perform the Services for a
period of [*] after the expiration of the Term and Sun will pay Intraware [*]
of Sun's Subscription revenue of Sun Products covered during the period; and

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                  (B) If the parties agree on a renewal Term, the price for the
Services shall not exceed [*] of Sun's Subscription revenue over the
preceding Term.

         3.2      TERMINATION.

                  (A) For Convenience. This Agreement may be terminated by Sun
for convenience upon one hundred eighty (180) calendar days prior written notice
to Intraware, and in such event, Sun shall pay Intraware for the Services based
upon the pro rata portion of fees earned by Intraware through the effective date
of termination.

                  (B) WITH CAUSE. If this Agreement is terminated by Sun for
cause by reason of an Event of Default, as set forth in Article 9, Intraware
will pay to Sun on a pro-rate basis over the Term, the quarterly pre-payments
payable by Sun hereunder. Any termination, however, shall not relieve either
party from any obligations hereunder that survive termination under Section 16.3
hereof.

         3.3 TECHNOLOGY ESCROW. Intraware agrees that the entire source code for
SubscribNet and other Intraware Products, together with all related listings and
documentation, as it now exists or hereafter becomes available including, but
not limited to, the then current version(s) of such products being used by
Intraware in the performance of the Services, ("Escrow Materials") will be
deposited, maintained and updated at Sun's expense in escrow substantially in
the form of the Escrow Agreement attached hereto as ATTACHMENT C. Intraware
shall deposit the Escrow Materials within thirty (30) days of the Effective Date
or, in the case of updates to the Service, within thirty (30) days after
commercial release of such updates.

                                    ARTICLE 4
                            WEB SITE RESPONSIBILITIES

         4.1 TRADEMARKS AND BRANDING. A name using the format "[generic name ]
by SubscribNet, an authorized Sun-Netscape Alliance provider" will be mutually
agreed between the parties for use on the Sun/SubscribNet site and throughout
all communications and materials, including but not limited to marketing
materials and price lists. relating to the Services. All use of the SubscribNet
brand by Sun will be subject to mutually agreed to trademark guidelines provided
by Intraware to be attached in Attachment D, and all use of the "Sun" or Sun
owned or Netscape or Netscape owned trademarks will be subject to the Sun
Trademark & Logo usage Requirements provided by Sun at
http://www.sun.com/policies/trademarks for Sun and in accordance with Netscape's
current trademark guidelines. Intraware shall not independently use the Sun name
without Sun's prior written consent unless such use occurs in connection with
Intraware's advertising sales and promotional efforts on behalf of the Service
in accordance with the Sun Trademark & Logo Usage Requirements. The use of the
Sun name or brands will be subject to Sun's then-current design guidelines to be
provided by Sun.

         4.2 TECHNICAL SUPPORT. Intraware will provide technical support to Sun
to ensure that content is correctly received and displayed by Sun. Intraware
shall provide technical support services for the Service to Sun on a timely
basis, appoint a technical contact to whom Sun may

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address all technical questions relating to the Service, and use reasonable
commercial efforts to promptly remedy any material malfunctioning of the
Service. Intraware shall be solely responsible for the purchase,
implementation, maintenance and support of all software and hardware required
to fulfill its obligations under the Agreement.

         4.3 SERVICE IMPLEMENTATION. Intraware shall provide Services on the
Sun's web Site. All content supplied by Intraware for the Service will meet
specifications provided by Sun with regard to page size, loading speed and speed
of access to database driven content; provided that such obligations shall not
be materially more restrictive than the current features, unless the parties
otherwise mutually agree. Intraware shall be responsible for the production,
technology deployment, content programming, and creation of graphic user
interfaces of the Service; all in accordance with Sun's then-current guidelines.
The Service shall use substantially the same technology and advantages that
Intraware uses in its own proprietary SubscribNet service(s), if any, unless
otherwise mutually agreed by the parties. The Service shall not be disadvantaged
or suffer from inferior production, programming or performance relative to
Intraware's similar services, or any similar service that Intraware might make
available to, or operate on behalf of, third parties. The Service shall perform
substantially in accordance with the performance standards of its own
proprietary services, including, but not limited to, load time, timeliness of
content, and quality of programming. Intraware's obligation to produce the
Service, including production services, technology deployment and content
programming that meets or exceeds standards established by Intraware on
Intraware's Web Site or services (or any web site or services Intraware manages
for any third party) and general industry standards is a material obligation of
Intraware under this Agreement.

         4.4 LICENSE GRANT. During the Term, Intraware grants to Sun the
non-exclusive, worldwide and royalty-free right to store, display, perform, and
otherwise use the data, information, content or other intellectual property
provided by Intraware for use within the Service.

         4.5 WEB SITE GENERAL TERMS. The parties agree and accept the Web
Site General Terms provided herewith as ATTACHMENT A.

                                    ARTICLE 5
                                  PAYMENT TERMS

         5.1 PRICE. In consideration for the Services performed hereunder and
subject to the terms and conditions hereof, Sun shall pay Intraware [*] for
the Services.

         5.2 PAYMENT TERMS. Sun will pay [*] of the total amount due to
Intraware under this Agreement on a Sun fiscal year quarterly basis with any
remainder amount due to be paid in the final payment. All payments by Sun
will be forwarded within 30 days of Sun's receipt of the Intraware invoice
during the Term of this Agreement until all payments due to Intraware have
been made. Intraware may submit its invoice on the first day of each calendar
month which begins a Sun fiscal year quarter during the Term of this
Agreement. Payment shall be considered a pre-payment for Services to be
provided by Intraware during that Sun fiscal year quarter. All payments made
by Sun hereunder will be made by wire transfer to the bank

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specified by Intraware. A finance charge of one and one-half percent (1.5%) per
month, or the lawful limit if less, shall be assessed on all amounts that are
past due, and Intraware shall be responsible for collection costs if applicable.
Interest shall be calculated from the invoice due date to the date payment is
received.

         5.3 To the extent that Sun Products are added to the Price Books
after August 31, 1999, Sun shall pay to Intraware [*] of the Subscription
fees received by Sun for such Sun Product, not to exceed [*], which amount
shall be the total amount due to Intraware from Sun for the addition of Sun
Products as contemplated herein.

                                    ARTICLE 6
                          REPRESENTATIONS AND WARRANTY

         6.1 INTRAWARE'S REPRESENTATIONS AND WARRANTY. Intraware represents
and/or warrants to Sun, as appropriate as follows:

                  (A) NO RESTRICTIONS. Intraware represents that it is not under
any obligation or restriction which would in any way interfere with or be
inconsistent with its performance obligations under this Agreement.

                  (B) SERVICES. Intraware warrants that the Services, whether
performed by Intraware or subcontractors, shall be performed in a professional
and workmanlike manner, with all due skill and care, and will meet or exceed the
specifications set forth in the requirements of this Agreement and any
documentation provided by Intraware.

                  (C) INTRAWARE PRODUCTS. Intraware warrants that (i) the media
on which the Intraware Products are delivered will be free of defects in
material and workmanship, (ii) the Intraware Product(s) will function in
accordance with the specifications for the Intraware Product(s) in applicable
documentation, and (iii) any documentation provided with the Intraware
Product(s) shall be accurate in all material respects. This warranty will not
apply to Intraware Products that have been improperly installed or used in a
manner other than as authorized under this Agreement. Intraware does not warrant
that the Intraware Products will meet Sun's requirements except in accordance
with this Agreement, or that the Intraware Products will operate in the
combinations which Sun may select for users, or that the operation of the
Intraware Products or that all errors will be repaired. Any claim submitted
under this product warranty section must be submitted in writing to Intraware
within the warranty period. In the case of a breach of the warranties in this
subsection (C), Intraware shall repair or replace nonconforming, unsuitable or
inaccurate Intraware Product(s) or documentation within a reasonable period of
time (not to exceed ten (10) days) of receipt of written notice of such
condition.

                  (D) YEAR 2000. Intraware warrants that the current version of
the Intraware Products, including the SubscribNet software, contain
functionality, including the time-and-date-related code, needed for the December
31, 1999 to January 1, 2000 date change; provided the underlying operating
system of the host machine, and any non-Intraware-owned software provided with
or in the host machine or Product(s), also contain functionality, including the
time-and-date-

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related code, needed for the December 31, 1999 to January 1, 2000 date
change. The sole and exclusive remedy for any breach of this warranty is
repair or replacement of the affected Product(s), excluding any
non-Intraware-owned software or underlying operating system. This warranty is
null and void if Sun alters, modifies or misuses any portion of the
Product(s).

         In the case of a breach of the warranty described in this subsection
(D), Intraware shall use reasonable efforts to modify the Intraware Products
such that the Intraware Product(s) is Year 2000 Compliant. [*]

                  (E) THE WARRANTIES CONTAINED IN THIS ARTICLE 6 ARE THE ONLY
WARRANTIES GIVEN TO SUN IN CONNECTION WITH THIS AGREEMENT AND THE SERVICES
PERFORMED HEREUNDER. ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT
LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE ARE DISCLAIMED.

         6.2 SUN'S REPRESENTATIONS AND WARRANTY. Sun represents and/or warrants
to Intraware, as appropriate, as follows:

                  (A) USE OF USER INTERFACE. At no time during the term of the
Agreement, or at any time thereafter, will Sun copy, modify or otherwise utilize
the SubscribNet user Interface.

                  (B) NO RESTRICTIONS. Sun represents that, except as provided
in Sections 2.8 and 2.9, it is not under any obligation or restriction that
would in any way interfere with or be inconsistent with its performance
obligations under this Agreement.

                                    ARTICLE 7
                            CONFIDENTIAL INFORMATION

         7.1 Each party agrees not to use directly or indirectly or reproduce
the Confidential Information of the other for any purpose except for carrying
out the terms of this Agreement and agrees not to disclose the Confidential
Information of the other to any third parties except in accordance with this
Agreement.

         7.2 Each party agrees to use its best efforts to protect such
Confidential Information from disclosure to third parties. Disclosures of the
Confidential Information shall be restricted to the parties' employees who are
directly participating in the efforts covered by this Agreement, have a need to
know such Confidential Information and are bound by the provisions of this
Article 7, except that the parties may disclose Confidential Information to
Netscape Communications Corporation employees who directly participate in the
efforts covered by this Agreement and agree to be bound by the terms herein.

         7.3 The limitations on reproduction, disclosure, and use of the
Confidential Information shall lapse upon the occurrence of one of the
following:

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               (1) If such Confidential Information is publicly available or
later becomes publicly available other than through a breach of this
Agreement; or

               (2) If the disclosing party generally furnishes its
Confidential Information to a third party without similar confidentiality
restrictions on the third party's rights; or

               (3) If disclosure of such Confidential information is
compelled by court order or judicial or administrative process; or

               (4) If such Confidential Information is independently
developed by the receiving party subsequent to such disclosure without use of
Confidential Information disclosed hereunder; or

               (5) If such Confidential Information is lawfully obtained by
the receiving party from a third party without obligations of confidentiality.

                                    ARTICLE 8
                                 INDEMNIFICATION

         8.1 Each party (the "Indemnitor") will indemnify and hold harmless the
other party (the "Indemnitee") from and against (a) losses, damages, judgments,
settlements, attorney's fees, costs, and expenses which the Indemnitee may
sustain, incur, or be required to pay, arising out of or in connection with
claims for personal injury or damage to real or tangible property resulting from
negligent action or inaction of the Indemnitor or a person employed by the
Indemnitor in the performance of this Agreement; (b) a breach of any of the
representations and warranties made by either party hereunder; or (c) in the
case of Intraware, any third party claim arising from the Service; and (d) any
material, content, or any content to which a party can link, supplied by either
party in connection with this Agreement.

         8.2 INTELLECTUAL PROPERTY INDEMNITY:

                  8.2.1 INTRAWARE INDEMNITY. Intraware shall defend or settle,
at its option, any action brought against Sun to the extent it is based on a
claim that use, reproduction or distribution by Sun of the Intraware portion of
the Intraware Products furnished hereunder within the scope of a license granted
hereunder directly infringes any valid U.S. copyright, U.S. patent or U.S. trade
secret. Intraware shall also defend any action brought against Sun to the extent
that it is based on a claim that the Intraware trademark(s) Sun is permitted to
use hereunder directly infringes any valid United States trademark. Intraware
will pay resulting costs, damages and legal fees finally awarded against Sun in
such action which are attributable to such claim provided that Sun: (a) promptly
notifies Intraware in writing of any such claim and Intraware has sole control
of the defense and all related settlement negotiations; and (b) cooperates with
Intraware, at Intraware's expense, in defending or settling such claim.

     Should an Intraware Produce become, or be likely to become in Intraware's
opinion, the subject of infringement of such U.S. patent, copyright or trade
secret, Intraware may

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procure for Sun: (i) the right to continue using the same; or (ii) replace or
modify it to make it non-infringing. In the event that Intraware shall
reasonably determine that neither (i) nor (ii) above is commercially
practicable, Intraware may terminate the license for the infringing Intraware
Product and refund Sun for the fees that Sun has paid hereunder (excluding
the initial payment) up to [*]. Intraware shall have no obligation or
liability for, and Sun shall defend, indemnify and hold Intraware harmless
from and against any claim based upon: (a) use of other than the then
current, unaltered version of the Intraware Product, unless the infringing
portion is also in the then current, unaltered release; (b) use, operation or
combination of Intraware Products with non-Intraware programs, data,
equipment or documentation is such infringement would have been avoided but
for such use, operation or combination; (c) Sun's or its agent's activities
after Intraware has notified Sun that Intraware believes such activities may
result in such infringement; (d) compliance with Sun's designs,
specifications or instructions; (e) any modifications or marking of the
Intraware Products not specifically authorized in writing by Intraware; or
(f) third party software. The foregoing states the entire liability of
Intraware and the exclusive remedy of Sun with respect to infringement of any
intellectual property rights, whether under theory of warranty, indemnity or
otherwise.

                  8.2.2 SUN INDEMNITY. Sun shall defend or settle, at its
option, any action brought against Intraware to the extent it is based on a
claim that use, reproduction or distribution by Intraware of the Sun portion of
the Sun Products furnished hereunder within the scope of a license granted
hereunder directly infringes any valid U.S. copyright, U.S. patent or U.S. trade
secret. Sun will pay resulting costs, damages and legal fees finally awarded
against Intraware in such action which are attributable to such claim provided
that Intraware: (a) promptly (within twenty (20) days) notifies Sun in writing
of any such claim and Sun has sole control of the defense and all related
settlement negotiations; and (b) cooperates with Sun, at Sun's expense, in
defending or settling such claim.

     Should a Sun Product become, or be likely to become in Sun's opinion,
the subject of infringement of such U.S. patent, copyright or trade secret,
Sun may procure for Intraware: (i) the right to continue using the same; or
(ii) replace or modify it to make it non-infringing. In the event that Sun
shall reasonably determine that neither (i) nor (ii) above is commercially
practicable, Sun may terminate the license for the Infringing Sun Product and
pay Intraware an amount representing the fees that Sun has paid hereunder
(excluding the initial payment) up to [*]. Sun shall have no obligation or
liability for, and Intraware shall defend, indemnify and hold Sun harmless
from and against any claim based upon: (a) use of other than the then
current, unaltered version of the Sun Product, unless the infringing portion
is also in the then current, unaltered release; (b) use, operation or
combination of Sun Products with non-Sun programs, data, equipment or
documentation if such infringement would have been avoided but for such use,
operation or combination; (c) Intraware's or its agent's activities after Sun
has notified Intraware that Sun believes such activities may result in such
infringement; (d) compliance with Intraware's designs, specifications or
instructions; (e) any modifications or marking of the Sun Products not
specifically authorized in writing by Sun; or (f) third party software. The
foregoing states the entire liability of Sun and the exclusive remedy of
Intraware with respect to infringement of any intellectual property rights,
whether under theory of warranty, indemnity or otherwise.

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                  8.2.3 Neither party will have any liability to the other for
any claim of infringement in this Section 8.2 based on (i) the other party's
continued use or distribution, as the case may be, of a superseded product after
the indemnifying party has given reasonable notice and a reasonable opportunity
to update its use, or an altered release, except for such alteration(s) or
modification(s) which have been made by the indemnifying party or under the
indemnifying party's direction, if such infringement would have been avoided by
the use of a current, unaltered release of such product, or (ii) the
combination, operation, or use of any Services furnished under this Agreement
with programs or data not created by the indemnifying party if such infringement
would have been avoided by the use of the Services without such programs or
data.

                                    ARTICLE 9
                                     DEFAULT

         9.1 EVENT OF DEFAULT. An "Event of default" shall occur under any of
the following conditions:

                  (A) Either party fails to perform any material obligation to
be performed by it hereunder within thirty (30) days after written notice from
the other party that time for such performance has passed or, if no such time is
prescribed, within thirty (30) days after written notice from the other party.

                  (B) Either party becomes insolvent or unable to pay its debts
as they become due, makes an assignment for the benefit of creditors or files a
petition in any insolvency proceeding or in any bankruptcy, reorganization,
scheme of arrangement or reconstruction, or similar proceeding.

                  (C) A receiver, manager or liquidator is appointed for any of
a party's assets or a petition is filed in any insolvency, bankruptcy,
reorganization, scheme of arrangement, reconstruction or similar proceeding, and
such receiver, manager or liquidator is not discharged, or such petition is not
withdrawn, within ninety (90) days after such appointment or filing.

         9.2 REMEDY. If either party causes to occur an Event of Default as
specified in Section 9.1, then the non-defaulting party, at its option, shall
have the right to terminate this Agreement by written notice as provided in
Section 3 and pursue any other remedy hereunder or otherwise available to it at
law or in equity.

         9.3 COMPENSATION. The parties hereby expressly agree and acknowledge
that, except as provided in Section 3 and in this Section 9.3, termination of
this Agreement by either party shall not entitle it to any termination
compensation or to any payment in respect of any goodwill established by either
party during the Term or render Sun liable for damages on account of any loss of
prospective profits or on account of any expenditure, Investment or obligation
incurred or made by Intraware.

                                       -12-
<PAGE>

                                   ARTICLE 10
                             LIMITATION OF LIABILITY

         EXCEPT FOR A BREACH OF SECTION 7 (CONFIDENTIALITY), 8 (INDEMNIFICATION)
AND 11 (OWNERSHIP):

         (A) EACH PARTY'S LIABILITY FOR DIRECT DAMAGES UNDER THIS AGREEMENT
WILL IN NO EVENT EXCEED [*]; AND

         (B) NEITHER INTRAWARE NOR SUN WILL BE LIABLE FOR INDIRECT, INCIDENTAL
SPECIAL OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOST DATA OR
LOST PROFITS, HOWEVER, ARISING, EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES OR FOR ANY SIMILAR CLAIM AGAINST LICENSEE BY ANY OTHER PARTY.

                                   ARTICLE 11
                                    OWNERSHIP

         11.1 SUN OWNERSHIP. Intraware shall acquire no rights in and to the Sun
Products or the Sun Customer Data, and all ownership rights in and to the Sun
Products, Sun Customer Data and any marketing or customer data generated
hereunder shall remain with Sun or its licensors, as appropriate. Intraware
agrees that it shall not (i) sell, transfer or assign any of same or any rights
or interest therein, or (ii) create or suffer to exist any liens with respect to
the Sun Products or its programs or publications, except in accordance with this
Agreement or the specific instructions of Sun or its licensor hereunder or
statutory or common law liens resulting from Sun's failure to pay Intraware
invoices. Intraware acknowledges that Sun (or its licensor) is the owner of all
intellectual and proprietary rights in the Sun Products or its programs and
publications, including source and object code, copyrights and patents relating
to the Sun Products or its programs and publications, and that neither this
Agreement nor the Sun Products or its programs and publications, and that
neither this Agreement nor performance of the Services hereunder shall directly
or indirectly create in or for Intraware any right, title or interest therein,
other than in accordance with the statutory or common law liens referenced
above.

         11.2 INTRAWARE OWNERSHIP. Sun shall acquire no rights in and to the
Intraware Products or the Intraware Customer data, and all ownership rights in
and to such Intraware Product, shall remain with Intraware or its licensors, as
appropriate. Sun agrees that it shall not (i) sell, transfer or assign any of
same or any rights or interest therein, or (ii) create or suffer to exist any
liens with respect to the Intraware Products or its programs or publications,
except in accordance with this Agreement or the specific instructions of
Intraware or its licensor hereunder or statutory or common law liens resulting
from Intraware's failure to pay Sun invoices. Sun acknowledges that Intraware
(or its licensor) is the owner of all intellectual and proprietary rights in
such Intraware Product, including source and object code, copyrights and patents
relating to the Intraware Products or its programs and publications, and that
neither this Agreement nor performance of the Services hereunder shall directly
or indirectly create in or for Intraware any right, title or interest therein,
other than in accordance with the statutory or common law liens referenced
above.

                                       -13-
<PAGE>

                                   ARTICLE 12
                                    DISPUTES

         Should any dispute or differences arise from this Agreement or any
performance hereunder, the parties shall first attempt to arrive at an amicable
settlement, as follows. A party shall identify the existence of a dispute by
notifying the other party in writing. Upon such notice, the matter shall be
referred to a senior executive officer of each party whose responsibilities are
not in the profit center that is the subject of the dispute, for oral
presentations (with minimal written support such as briefing charts or summary
sheets). No outside counsel may appear during this informal process.

         If at the completion of such presentation such officers cannot resolve
this dispute within thirty days after escalation, then either party may seek any
available legal relief. This provision will not affect either party's right to
seek injunctive or other provisional relief at any time.

                                   ARTICLE 13
                                      TAXES

         All prices are in U.S. Dollars and are inclusive of any applicable
taxes. Intraware shall be responsible for filing all appropriate federal, state
and local tax forms related to payment for its Services under this Agreement.
Intraware shall be responsible for sales or use taxes which are due solely by
reason of Intraware's performance of Services hereunder other than taxes
assessed on Intraware's income. Each party shall cooperate with the other in
minimizing any applicable tax. In addition, each party shall reasonably
cooperate with the other in the event of a government audit.

                                   ARTICLE 14
                                     EXPORT

         Intraware shall comply fully with all then current applicable laws,
rules and regulations relating to the export of technical data, including, but
not limited to any regulations of the United States Office of export
Administration and other applicable governmental agencies and Intraware
acknowledges that by virtue of certain security technology embedded in the Sun
Products, that export of such software may not be legal.

                                   ARTICLE 15
                             MARKETING AND PROMOTION

         15.1 MARKETING COLLATERAL. Reasonable amounts of marketing collateral
(i.e., pamphlets, brochures, and the like) associated with the SubscribNet
service will be made available to Sun.

         15.2 OUTBOUND MARKETING. All outbound marketing content including all
electronic communication with End Users who are not Intraware Customers will be
approved by Sun. The parties will mutually agree upon the guidelines for
marketing materials.

         15.3 SUN MARKETING EFFORTS. Sun will use reasonable commercial efforts
to communicate and disseminate the details of the SubscribNet program to its
sales force, customer service

                                       -14-
<PAGE>

representatives, technical support representatives, Channel Distributors,
third party partners and end user customers upon implementation, launch and
on an ongoing basis.

         15.4 JOINT PRESS RELEASE. Sun and Intraware will jointly issue a press
release describing Sun usage of Intraware SubscribNet service. Such release will
be issued within 7 days of execution of this Agreement or as soon thereafter as
possible. Sun will support the release with timely and reasonably scheduled
press and analyst calls.

         15.5 RESPONSE TIMES. Sun shall respond to Intraware requests for
approval of marketing materials within 24 hours during a business day or as soon
as practicable thereafter, or as otherwise agreed to by the parties, to ensure
timely delivery of such materials to End Users, taking into consideration the
importance of timeliness to the SubscribNet brand.

                                   ARTICLE 16
                                  MISCELLANEOUS

         16.1 ORDER OF PRIORITY. In the event of a conflict between this
Agreement, the Statement of Work and any outstanding agreements between Sun and
Intraware, the order of priority of this Agreement shall be as follows:
(a) this Agreement, and (b) other exhibits hereto.

         16.2 FORCE MAJEURE. Neither party shall be liable for delays in its
performance of this Agreement occasioned by strikes, fires, accidents, or by
other causes beyond its control. In the event of a stoppage or delay suffered by
Intraware resulting form any such cause, Intraware shall perform such parts of
the work as Intraware is capable of performing and shall resume full performance
of the Services as soon as is reasonably practicable.

         16.3 SURVIVAL. The provisions of Sections 2.7 (A) and (C), 3.2
(Termination), 9.2 and 93. (Default), and Articles 10 (Limitation Of Liability),
11 (Ownership), 13 (Taxes), and 16 (Miscellaneous) shall survive termination of
this Agreement. The provisions of Articles 6 (Representations and Warranty) and
8 (Indemnification) shall survive termination for a period of four years
thereafter. The provisions of Article 7 (Confidentiality) shall survive
termination of this Agreement for a period of five years thereafter.

         16.4 ASSIGNMENT. Neither party to this Agreement shall assign any
rights hereunder without the prior written consent of the other party, which
consent shall not be unreasonably withheld.

         16.5 SEVERANCE. In the event that any provision of this Agreement shall
be held by a court of law or other governmental agency to be void, voidable, or
unenforceable, the remaining portions hereof shall remain in full force and
effect.

         16.6 RELATIONSHIP. Intraware is an independent contractor and nothing
contained herein shall be construed to create any other relationship between the
parties. Nothing in this Agreement shall be construed to constitute either party
as the agent of the other party for any purpose whatsoever, and neither party
shall bind or attempt to bind the other party to any contract or the

                                       -15-
<PAGE>

performance of any other obligation, or represent to any third party that it
has the right to enter into any binding obligation on the other party's
behalf.

         16.7 GOVERNING LAW. All questions concerning the validity and operation
of this Agreement and performance of the obligations imposed upon the parties
hereunder shall be governed by the substantive laws of the State of California.
Jurisdiction and venue shall be in Santa Clara County or the Northern District
of California. Choice of law rules of any jurisdiction and the United National
Convention on Contracts for the International Sale of Goods will not apply.

         16.8 HEADINGS. The headings and titles to the Articles and Sections of
this Agreement are inserted for convenience only and shall not be deemed a part
hereof or affect the construction or interpretation of any provision hereof.

         16.9 REMEDIES. Unless otherwise expressly provided herein, the rights
and remedies hereunder are in addition to, and not in limitation of, other
rights and remedies available to the parties, and exercise of one right or
remedy shall not be deemed a waiver of any other right or remedy.

         16.10 NO AMENDMENT OR WAIVER. No amendment, modification, deletion,
addition or other change in this Agreement or any provision hereof, or waiver of
any right or remedy herein provided, shall be effective for any purpose unless
specifically set forth in a writing signed by the party to be bound thereby. No
Waiver of any right or remedy in respect of any occurrence or event on one
occasion shall be deemed a waiver of such right or remedy in respect of such
occurrence or event on any other occasion.

         16.11 ENTIRE AGREEMENT. This Agreement supersedes all other agreements,
oral or written, heretofore made with respect to the subject matter hereof and
the transactions contemplated hereby and, with the Attachments hereto, contains
the entire agreement of the parties.

         16.12 NOTICES. Notices and communications required or permitted to be
given under this Agreement shall be written in English and shall be addressed as
set forth below.

         If to Sun:

                  Sun Microsystems, Inc.
                  901 San Antonio Road, MS _____
                  Palo Alto, CA 94303-4900
                  Attention: TBD
                  Title:
                  Telephone:
                  Fax:

                  And to

                                       -16-
<PAGE>

                  Netscape Communications Corporation
                  501 E. Middlefield Road
                  Mountain View, CA 94043
                  Attention: Tony Weber
                  Title: Director
                  Telephone: 650/937-3095
                  Fax: 650-937-5421

         If to Intraware:

                  Intraware, Inc.
                  25 Orinda Way
                  Orinda CA 94563
                  Attention: Frost Prelow
                  Title: Vice President Business Development
                  Telephone: 925/253-6594
                  Fax: 925-253-4599

         Notice shall be sent by registered mail, postage prepaid, return
receipt requested, by reputable overnight courier, paid by the sender, or by
facsimile. The date of receipt shall be deemed to be the date on which such
notice was actually received. Each party shall promptly give the other party
written notice of any change of address or contract.

         16.13 COMPLYING WITH THE LAW. Intraware and Sun agree to comply fully
with all applicable federal, state and local laws.

         16.14 ATTORNEY'S FEES. The prevailing party in any dispute shall have
all court costs, expenses, reasonable attorneys' fees, and any other relief a
court orders paid by the other party.

         16.15 INSURANCE. Intraware, at its sole cost and expense, shall secure
and maintain adequate insurance coverage as is necessary, as a reasonable
prudent businessperson, for Intraware to bear all of its obligations under this
Agreement. On Sun's request, Intraware shall provide Sun with satisfactory
evidence of such insurance. Before any cancellation or material change in any
coverage, Intraware shall provide Sun with 30 days advance written notice.

         16.16 COUNTERPARTS. This Agreement may be executed in counterparts or
by facsimile, each of which shall be an original and all of which together with
constitute one and the same agreement.

                                       -17-
<PAGE>

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

                                            SUN MICROSYSTEMS, INC.

                                            By: /s/ Allen D. Page
                                                ------------------------------
                                                Print name:  Allen D. Page
                                                Print title:  V.P. Operations

                                            INTRAWARE INC.

                                            By: /s/ Donald M. Freed
                                                ------------------------------
                                                Print name:  Donald M. Freed
                                                Print title:  EVP/CFO

                                       -18-
<PAGE>

                                  ATTACHMENT A

                             WEB SITE GENERAL TERMS

UPTIME

         The Service will function substantially in accordance with the terms
set forth in this Agreement. In any given twenty-four hour period during the
Service Period, the Service shall have an uptime of at least 98% with industry
standard downtime for maintenance, provided that such downtime not occur at peak
traffic times. Intraware shall repair any malfunctions of the Service within a
reasonable period of time not to exceed (i) 2 days for material malfunctions of
the Service after written notice by any party of such condition, and (ii) 4 days
for any non-material malfunction of the Service after written notice by any
party of such condition or as otherwise agreed to by the parties.

MAIL TO LINK

        Notwithstanding the provisions below, Sun may in its discretion require
that the mail to link send certain help requests to Sun, as the parties shall
agree.

                                       A-1
<PAGE>

                                  ATTACHMENT B

                          USER REGISTRATION AND PRIVACY

I.       DEFINITIONS

         "Registration" means the portion of the registration that s maintained,
hosted, and controlled by Sun and applies to multiple services across.
Registration includes the assignment of a user name, password, and the
collection of core user profile data including but not limited to: First name,
Last name, Address, City, State, Country, Zip Code, Email Address, Age and
Gender.

         Sun Registration means any registration that is maintained, hosted, and
controlled by Sun and applies to Sun's Web Site. Sun Registration includes the
assignment of a user name, password, and the collection of core user profile
data including but not limited to: First name, Last name, Address, City, State,
Country, Zip Code, Email Address, Age and Gender.

II.      REGISTRATION PROCESS

         To the extent that Intraware desires to offer a registration process,
Intraware will be responsible for the implementation of the Service Registration
and the integration of the Service with Registration. The functionality, design,
and integration of the Service Registration process and Registration will be
subject to Sun's approval, terms and conditions as defined in this Agreement.
Such specifications, terms and conditions may be revised by Sun from time to
time upon 30 days prior notice to Intraware. Intraware will implement changes
within a 30 day period unless the parties mutually agreed otherwise. The point
of entry to the registration area from the Service shall be hosted and
controlled by Sun unless otherwise determined by Sun.

III.     REGISTRATION FEATURES

         The Service Registration area shall have a look and feel which is
consistent with the implementation of the registration process in other sections
of Sun's Web Site, Intraware shall not launch the Service Registration until Sun
has notified Intraware in writing that Sun has accepted Intraware's
implementation. Intraware shall manage site access using site access models, as
such site access models shall be determined by Sun from time to time upon notice
to Intraware. Sun shall transfer to Intraware all data necessary to provide site
access to registered users. Intraware will make commercially reasonable efforts
to implement such changes within a 30 day period.

IV.      DATA COLLECTED BY INTRAWARE DURING SERVICE REGISTRATION PROCESS

         Sun will determine the data to be collected in the Service Registration
process considering Intraware's recommendations and technical restrictions. Sun
reserves the right to change such data requirements from time to time. Intraware
will make best efforts to implement those changes within 5 working days unless
mutually agreed to otherwise. If Sun implements a loyalty program, Intraware
shall also offer end user loyalty selections as part of the Service Registration
process at

                                       B-1
<PAGE>

Sun's request. Intraware shall deliver to Sun data collected pursuant to such
loyalty programs in a format and timeframe as mutually agreed to by the
parties.

V.       DATA TRANSFER

         Intraware shall use commercially reasonable efforts to transfer all end
user data collected during the Service Registration process and data collected
by any other means, to Sun in real time data transfer, unless otherwise agreed
to by the parties. Sun reserves the right to request any information collected
during the Service Registration to be supplied in a Sun specified format and
timeframe. If Intraware collects information about users accessing the Service
in addition to information supplied by the users during the registration
process, such information shall be made available to Sun in a format and
timeframe as the parties shall mutually agree.

V.       DATA TRANSFER

         Intraware shall use commercially reasonable efforts to transfer all end
user data collected during the Service Registration process and data collected
by any other means, to Sun in real time data transfer, unless otherwise agreed
to by the parties. Sun reserves the right to request any information collected
during the Service Registration to be supplied in a Sun specified format and
timeframe. If Intraware collects information about users accessing the Service
in addition to information supplied by the users during the registration
process, such information shall be made available to Sun in a format and
timeframe as the parties shall mutually agree.

         VI.      WEB SITE CONSIDERATIONS

         All third party programs participating in the Service within shall
register users with when the user completes an order, if such user is not
already registered with. If a user is a registered member, Intraware shall
pre-populate relevant customer data fields in the customer order form based on
information in the database or seamlessly pass this information to the third
party provider.

         VII.     USE OF PERSONAL DATA

         Ownership and use of customer data shall be as set forth in the
Agreement. Intraware: (i) shall have the right to aggregate such data and
information and use such data and information and use such aggregated data only
for marketing and reporting pertaining to the SubscribNet service and
specifically not for sales solicitation of customers, except as required for
legal, audit or tax purposes; (ii) shall not disclose to any third party such
end user data and information without Sun's prior written approval; and (iii)
may use information collected about the users during registration or from any
other means ("End User Information") only for the purpose of marketing programs
to the users. The parties shall treat all data pertaining to the Service,
including without limitation Sun Customer Data and Intraware Customer Data, as
Confidential Information. Intraware may not disclose any non-Intraware customer
data to any third party such end user data and information without Sun's prior
written approval.

                                       B-2
<PAGE>

         It is a material obligation of this Agreement that Intraware shall
adhere to Sun's then-current privacy policy, set forth at
http://www.sun.com/privacy/ or at such other URL as Sun may designate from time
to time. The parties will cooperate to create guidelines for Intraware's
disclosure of aggregate statistical information concerning Service's
demographics and use to advertisers. Intraware shall not resell or disclose such
End User Information to any third party; provided however, that Intraware may
sell or disclose such End User Information to third parties upon prior notice to
and consent from such end users and written approval from Sun. If Sun determines
that Intraware or third party in contract with Intraware is not complying with
the terms of use of personal data published on Sun's Web Site for the
Sun-Netscape Alliance, or such other URL as Sun may determine from time to time,
Sun may terminate this Agreement upon written notice to Intraware if Intraware
is not in compliance within 5 days of written notice from Sun. After a given end
user has requested to be "unsubscribed" from the Service, Intraware will
terminate all Services unless otherwise specified by the user and discontinue
any use of the End User information associated with the given user. After the
termination or expiration of the Service Period, Intraware will transfer all
non-Intraware customer data, including Sun Customer Data, to Sun and destroy all
copies of that data.

                                       B-3
<PAGE>

                                  ATTACHMENT C

                                ESCROW AGREEMENT

         See Attached Pages.

                                       C-1
<PAGE>

                                  ATTACHMENT D

                              TRADEMARK GUIDELINES

                               See Attached Pages.

                                       D-1<PAGE>

                       CONFIDENTIAL TREATMENT REQUESTED

[*] Denotes information for which confidential treatment has been requested
pursuant to a confidential treatment request filed with the Securities and
Exchange Commission. Confidential portions omitted have been filed separately
with the Commission.

                                                                 Exhibit 10.15

                              SUN CHANNEL AGREEMENT

                                  MASTER TERMS

         THIS SUN CHANNEL AGREEMENT MASTER TERMS ("Master Terms"), is made as of
September 1, 1999 ("Effective Date") between Sun Microsystems, Inc., with its
address at 901 San Antonio Road, Palo Alto CA 94303 ("Sun"), and Intraware Inc.,
with its address at 25 Orinda Way, Orinda, CA 94563 ("Customer").

         The parties agree as follows:

1.       SCOPE OF AGREEMENT

         1.1 EXHIBITS AND SCHEDULES. These Master Terms describe the general
terms by which, Customer may purchase Product and Service from Sun. The specific
terms related to the purchase of Equipment, Software and Service are described
in the appropriate Product or Service Exhibits and Schedules (collectively
referred to as "Exhibits"). The Exhibit will specify whether Customer will
purchase Equipment and/or Service directly from Sun or a Sun authorized
reseller. Each Exhibit and these Master Terms together constitute a separate
agreement ("the Agreement"). Exhibits may be added or deleted from time to time
by the agreement of the parties, but Customer is only authorized to purchase
Product or Service hereunder to the extent that one or more applicable Exhibits
is executed and in force.

         1.2 ORDER OF PRECEDENCE. The provisions of any Exhibit will take
precedence over these Master Terms, to the extent that they are inconsistent.

2.       DEFINITIONS

         2.1 EQUIPMENT means the hardware components (may also be referred to as
"hardware") of Product and includes the media on which Software is pre-loaded.

         2.2 PRODUCT means any Equipment and Software delivered by Sun directly
or indirectly to Customer under the Agreement.

         2.3 SERVICE means any consulting, educational and support services
provided directly or indirectly to Customer under the Agreement.

         2.4 SOFTWARE means any binary software (and related documentation)
provided by Sun directly or indirectly to Customer under the Agreement.

3.       TERM AND TERMINATION

         3.1 TERM. These Master Terms commence on the Effective Date and will
continue until the expiration or termination of all Exhibits. Each Exhibit shall
detail the commencement date of the Exhibit ("Exhibit Effective Date").

<PAGE>

         3.2 TERMINATION AT WILL. Either party may terminate these Master Terms
and/or any Exhibits without cause, for any reason, on one hundred eighty (180)
days written notice to the other party.

         3.3 TERMINATION FOR CAUSE: Either party may terminate these Master
Terms and any or all Exhibits:

             (a) immediately, by written notice, upon material breach by the
other party of the Agreement, if such breach cannot be remedied;

             (b) by written notice, if the other party fails to cure any
material remediable breach of the Agreement within thirty (30) days of
receipt of written notice of such breach;

             (c) automatically if Customer ceases to do business in the
normal course, becomes or is declared insolvent or bankrupt, is the subject
of any proceeding relating to the liquidation or insolvency of Customer which
is not dismissed within ninety (90) days or makes an assignment for the
benefit of its creditors;

             (d) immediately by written notice if Customer undergoes any
material change in ownership or control (whether by way of voting or contract
rights or otherwise) or in its business, which change Sun considers material,
in the light of the fact that Customer has been appointed by Sun because of
its present financial, technical and managerial conditions.

         3.4 TERMINATION BY SUN. In addition to the general reasons set forth in
Sections 3.2 and 3.3 above, Sun may terminate these Master Terms and any or all
Exhibits, immediately by written notice if Customer:

             (a) breaches any Sun Software license;

             (b) breaches Section 5 (Confidential Information) of these
Master Terms;

             (c) breaches (or Sun reasonably believes Customer will breach)
the U.S. Export Administration Regulations, the U.S. Foreign Corrupt
Practices Act or similar laws or regulations of any other government; or

             (d) infringes or challenges the validity of any Sun copyright or
Sun Trademark (as defined herein.)

         3.5 CONSEQUENCES OF TERMINATION OR EXPIRATION. Upon any expiration or
termination of the Agreement (or all of them), the following will occur:

             (a) all outstanding invoices and amounts owing from Customer to
Sun will there upon become immediately due and payable;

             (b) Sun will have the right of first refusal to repurchase
Product in Customer's inventory at the lower of net invoice price or the then
fair market value, as may be adjusted for any amounts due but unpaid pursuant
to Section 3.5(a). If Sun desires to exercise this right, it will do so

                                       -2-
<PAGE>

by written notice. Except in the case of Sun's termination for material
breach, for a period of ninety (90) days from the date of termination or
expiration, Customer may sell and/or license under the terms of the Agreement
any inventory Sun elects not to repurchase;

             (c) Sun will have the right to cancel by written notice all or
part of any unfulfilled order previously accepted by Sun. To the extent that
Sun does not cancel any such order, the Agreement will continue to apply to
such order;

             (d) except as otherwise provided in sub-section 3.5(b), Customer
will immediately return all Sun property under Customer's control (including
without limitation all Sun confidential information, schematics, manuals,
Software and Sun business plans) and remove, cancel and/or cease to use the
Sun Trademarks, any signs or other advertising materials referring to Sun, or
Product or Service or to Customer as an authorized reseller of Sun; and

             (e) except as otherwise provided in sub-section 3.5(b), all
Customer's rights under the Agreement shall immediately cease and Customer
shall at no time in the future represent that it is an authorized reseller of
Sun or that it is in any way associated with Sun or Products.

         3.6 SURVIVAL. Rights and obligations under the Agreement which by their
nature should survive, will remain in effect after termination or expiration of
the Agreement. All provisions of these Master Terms shall continue to apply to
any Exhibit which by its terms survives termination of these Master Terms.

         3.7 NO LIABILITY FOR TERMINATION OR EXPIRATION. The right of
termination or expiration provided herein is absolute. Each party waives and
releases the other from any claim to compensation or indemnity related to the
permitted or lawful termination of the business relationship established under
the Agreement.

4.       COMMERCIAL TERMS

         4.1 Commercial terms for Customers who purchase Products or Services
from a Sun authorized reseller will be determined by Customer's agreement with
such reseller. This Section 4.1 applies only to Customers who purchase Products
or Services directly from Sun.

             (a) PRICES AND TAXES. Prices and fees for Product and Service
are [DDP excluding VAT (INCOTERMS 1990) or exclusive of all shipping and
insurance charges, and do not include sales tax or any other tax based upon the
value of Product and/or Service. Customer is responsible for payment of all such
charges and taxes. To the extent that Customer is required to withhold taxes
based upon Sun's income in any country, Customer will provide Sun with written
evidence of such withholding suitable for Sun to obtain a tax credit in the
United States.

             (b) PAYMENTS. If Customer satisfies Sun's credit requirements,
payment terms are net thirty (30) days from the date of Sun's invoice or
shipment whichever is the later. Otherwise terms are cash in advance of
delivery. Sun in its reasonable commercial judgment may place Customer on
credit hold, in which event, Sun will promptly inform Customer and may: (i)
with respect to Product purchases, delay or reschedule Customer orders, and
(ii) with respect to Service, discontinue delivery upon thirty (30) days'
written notice to Customer. Interest will accrue from the

                                       -3-
<PAGE>

date on which payment is due at the lesser of fifteen percent (15%) per annum
or the maximum rate permitted by applicable law. Customer will not be
required to pay the disputed portion of any invoice, pending resolution of
that dispute, provided that written notice of the dispute has been forwarded
to Sun in writing within (15) days of the date of that invoice.

         4.2 RECORDS AND AUDITS. During the term of the Agreement and for a
period of three (3) years thereafter, Customer will maintain accurate records as
necessary to verify compliance with the Agreement. Sun may audit these records
at any time after reasonable written notice to verify compliance. Sun will
conduct this audit through an independent auditor of Sun's choice ("Auditor"),
during Customer's normal business hours. Auditor will be bound to keep
confidential the details of the business affairs of Customer and to limit
disclosure of the audit results to only the sufficiency of the records,
including, whether Customer is in compliance with the terms of the Agreement and
the amount, if applicable, of any required additional payment or other payment
adjustment. Except as described below, Sun will bear all costs and expenses
associated with the exercise of its audit rights. Any errors in payments
identified will be corrected by Customer by appropriate adjustment in payment
for the quarterly period during which the error is discovered. In the event of
an underpayment of more than five percent (5%), Customer will reimburse Sun the
amount of the underpayment, the reasonable charges of the Auditor in performing
the audit that identified the underpayment, and interest on the overdue amount
at the maximum allowable interest rate from the date the obligation accrued.

5.       CONFIDENTIAL INFORMATION

         If either party desires that information provided to the other party
under the Agreement be held in confidence, that party will, prior to or at the
time of disclosure, identify the information in writing as confidential or
proprietary. The recipient may not disclose such confidential or proprietary
information, may use it only for purposes specifically contemplated in the
Agreement, and must treat it with the same degree of care as it does its own
similar information, but with no less than reasonable care. These obligations do
not apply to information which: a) is or becomes known by recipient without an
obligation to maintain its confidentiality; b) is or becomes generally known to
the public through no act or omission of recipient, or c) is independently
developed by recipient without use of confidential or proprietary information.
This section will not affect any other confidential disclosure agreement between
the parties.

6.       LIMITED WARRANTIES

     6.1 PRODUCT AND SERVICE WARRANTIES. Any warranties for Product and Service
will be specified in the Exhibit(s).

         6.2      YEAR 2000 WARRANTY.

                  (a) Sun warrants that specified versions of Product identified
on Sun's external Web site (url: www.sun.com/y2000/cpl.html) as being Year 2000
compliant ("Listed Product") will not produce errors in the processing of date
data related to the year change from December 31, 1999 to January 1, 2000. Date
representation, including leap years, will be accurate when Listed Product

                                       -4-
<PAGE>

are used in accordance with their accompanying documentation, provided that
all hardware and software products used in combination with Listed Product
properly exchange date data with them.

                  (b) In addition to the Listed Products, the warranty also
applies to the Products identified in Attachment A to the Software Exhibit
attached hereto.

                  (c) Versions of Product identified on Sun's external Web site
as not yet compliant, but which are scheduled to be made compliant, will become
Listed Product when remedial replacement parts, patches, software updates or
subsequent releases ("Y2K Fixes") are issued and properly installed.

                  (d) Other Product are not covered by these warranties.

                  (e) To the extent that Sun installs Y2K Fixes or performs
other Service under the Agreement for Customer, Sun respectively warrants that:

                         (i) upon installation of the Y2K Fixes, Product will
become Listed Product; and

                         (ii) Service performed on Listed Product will not
result in them ceasing to be Listed Product.

                  (f) Customer's sole and exclusive remedy for Sun's breach of
these warranties will be for Sun: (i) at Sun's expense, to use commercially
reasonable efforts to provide Customer promptly with equivalent Year 2000
compliant Product; or (ii) if (i) is commercially unreasonable, to refund to
Customer its net book value for non-compliant Listed Product.

         6.3 [*]

         6.4 DISCLAIMER OF WARRANTIES. UNLESS SPECIFIED IN THE AGREEMENT, OR IN
ANY EXHIBIT, ALL EXPRESS OR IMPLIED CONDITIONS, REPRESENTATIONS AND WARRANTIES,
INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE OR NON-INFRINGEMENT, ARE DISCLAIMED, EXCEPT TO THE EXTENT THAT SUCH
DISCLAIMERS ARE HELD TO BE LEGALLY INVALID.

7.       IMPORT AND EXPORT LAWS

         All Product, Service and technical data delivered under the Agreement
are subject to U.S. export control laws and may be subject to export or import
regulations in other countries. Customer agrees to comply strictly with all such
laws and regulations and acknowledges that it has the responsibility to obtain
such licenses to export, re-export or import as may be required after delivery
to Customer.

                                       -5-
<PAGE>

8.       NUCLEAR APPLICATIONS

         Customer acknowledges that Products are not designed or intended for
use in the design, construction, operation or maintenance of any nuclear
facility. Sun disclaims any express or implied warranty of fitness for such
uses.

9.       TRADEMARKS

         9.1 TRADEMARKS. "Sun Trademarks" means all names, marks, logos,
designs, trade dress and other brand designations used by Sun in connection with
Product and Service. Customer may refer to Product and Service by the associated
Sun Trademarks provided that such reference is not misleading and complies with
Sun's Trademark and Logo Policies. Customer may not remove or alter any Sun
Trademarks, nor may it co-logo Product. Customer agrees that any use of Sun
Trademarks by Customer will inure to the sole benefit of Sun or its licensors.
Customer agrees not to incorporate any Sun Trademarks into Customer's
trademarks, service marks, company names, internet addresses, domain names, or
any other similar designations.

         9.2 SPECIAL PROGRAM LOGOS. Customer may use the special program logo,
if any, applicable to Customer's appointment, as established in any Exhibit
(e.g. Authorized Reseller Logo) only: (a) as shown in the art work provided by
Sun; (b) in pre-sale marketing materials and advertising, but not on goods,
packaging, product labels, documentation or other materials distributed with
Product; (c) in a manner no more prominent than Customer's corporate name and
logo; and (d) otherwise in accordance with the then current Sun Trademark and
Logo Policies.

         9.3 USE OF CUSTOMER INFORMATION. Each party has the right to disclose
and publish the other party's name, address and profile information in
connection with it's Customer programs.

10.      INTELLECTUAL PROPERTY CLAIMS

         Sun will defend or settle at its option and expense any legal
proceeding brought against Customer, to the extent that it is based on a
claim that the use of Product (or the use of the replacement parts,
enhancements, maintenance releases, and patches ("Materials") provided to
Customer by Sun) directly infringe a [*], and will pay all damages and costs
awarded by a court of final appeal attributable to such claim, provided that
Customer: (a) gives written notice of the claim promptly to Sun; (b) gives
Sun sole control of the defense and settlement of the claim; (c) provides to
Sun all available information and assistance; and (d) has not compromised or
settled such claim. If any Product or Materials are found to infringe, or in
Sun's opinion are likely to be found to infringe, Sun may elect to: (a)
obtain for Customer the right to use such Product and/or Materials; (b)
replace or modify such Product and/or Materials so that they become
non-infringing; or if neither of these alternatives is reasonably available,
(c) remove such Product and/or Materials and refund Customer's net book value
for these Product and/or Materials. Sun has no obligation under this Section
10 for any claim which results from: (a) use of Product and/or Materials in
combination with any equipment, software or data not provided by Sun,
provided such infringement claim would have been avoided had the Product not
been used in combination with such equipment, software or data; (b) Sun's
compliance with designs or specifications of Customer; (c) modification of
Product and/or Materials; or (d) use of an allegedly infringing version

                                       -6-
<PAGE>

of any Product and/or Materials, if the alleged infringement could be avoided
by the use of a different version made available to Customer. THIS SECTION 10
STATES THE ENTIRE LIABILITY OF SUN AND EXCLUSIVE REMEDIES OF CUSTOMER FOR
CLAIMS OF INFRINGEMENT.

11.      LIMITATION OF LIABILITY

         11.1 Except for obligations under Section 10 (Intellectual Property
Claims), or Section 12 (Indemnity and Insurance) or breach of any applicable
license grant, and to the extent not prohibited by applicable law, each party's
aggregate liability to the other for claims relating to the Agreement, whether
for breach or in tort, will be [*].

         11.2 Neither party will be liable for any indirect, punitive, special,
incidental or consequential damage in connection with or arising out of the
Agreement (including loss of business, revenue, profits, use, data or other
economic advantage) however it arises, whether for breach or in tort, even if
that party has been previously advised of the possibility of such damage.

         11.3 Liability for damages will be limited and excluded even if any
exclusive remedy provided for in the Agreement fails of its essential purpose.

12.      INDEMNITY AND INSURANCE

         Except for claims arising under Section 10 (Intellectual Property
Claims), Customer will indemnify Sun and its suppliers from and against all
claims, liabilities, damages and costs (including legal fees and costs),
relating to (i) Customer's use or distribution of Product and Service under the
Agreement or (ii) any acts or omissions of Customer. Customer shall carry
liability insurance to protect Sun from all such claims, pay the premiums
therefor, and deliver to Sun, upon request, proof of such insurance (which shall
require thirty (30) days' written notice to Sun in event of modification or
termination).

13.      FORCE MAJEURE

         A party is not liable under the Agreement for non-performance caused by
events or conditions beyond that party's control, if the party makes reasonable
efforts to perform. This provision does not relieve either party of its
obligation to make payments then owing.

14.      WAIVER OR DELAY

         Any express waiver or failure to exercise promptly any right under the
Agreement will not create a continuing waiver or any expectation of
non-enforcement.

15.      ASSIGNMENTS

         Neither party may assign or otherwise transfer any of its rights or
obligations under the Agreement, without the prior written consent of the other
party, which consent shall not be unreasonably withheld, except that Sun may
assign its right to payment, assign the Agreement to an

                                       -7-
<PAGE>

affiliated company, or subcontract the delivery of Service or Product. If Sun
elects to subcontract Service or Product delivery, Sun will remain primarily
responsible for delivery.

16.      RELATIONSHIP OF THE PARTIES

         An Agreement is not intended to create a relationship such as a
partnership, franchise, joint venture, agency, or employment relationship.
Neither party may act in a manner which expresses or implies a relationship
other than that of independent contractor, nor bind the other party.

17.      NOTICES

         All written notices required by the Agreement must be delivered in
person or by means evidenced by a delivery receipt and will be effective upon
receipt.

18.      SEVERABILITY

         If any provision of the Agreement is held invalid by any law or
regulation of any government or by any court or arbitrator, such invalidity will
not affect the enforceability of any other provisions.

19.      GOVERNING LAW

         Disputes which cannot be settled amicably will be governed by the laws
of the US and the state of California. Choice of law rules of any jurisdiction
and the United Nations Convention on Contracts for the International Sale of
Goods will not apply.

20.      ENTIRE AGREEMENT

         20.1 An Agreement (which includes the applicable Exhibit) is the
parties' entire agreement relating to its subject matter. It supersedes all
prior or contemporaneous oral or written communications, proposals, conditions,
representations and warranties and prevails over any conflicting or additional
terms of any quote, order, acknowledgment, or other communication between the
parties relating to its subject matter.

         20.2 No modification to the Agreement will be binding, unless in
writing and signed by an authorized representative of each party.

                                       -8-
<PAGE>

         IN WITNESS WHEREOF, THE DULY AUTHORIZED REPRESENTATIVES OF THE PARTIES
HAVE EXECUTED THESE MASTER TERMS AS OF THE EFFECTIVE DATE.

SUN MICROSYSTEMS, INC.                      INTRAWARE

By:  /s/ Alton D. Page                      By:   /s/  Donald M. Freed
    -------------------------------------       ---------------------------

Name:    Alton D. Page                      Name:      Donald M. Freed
      --------------------------------             ---------------------------

Title:   VP Operations                      Title:   EVP/CFO
      --------------------------------             ---------------------------

Date:    8/31/99                            Date:    8/31/99
      --------------------------------             ---------------------------

<PAGE>

                                    EXHIBIT A

                                SOFTWARE PRODUCTS
                       DIRECT VALUE ADDED RESELLER (DVAR)

This SMI Software Exhibit ("Software Exhibit") between Sun Microsystems, Inc.
and Customer is an attachment to the Master Terms between Sun and Customer and
is effective as of the date of execution by Sun ("Exhibit Effective Date"). The
Master Terms are an integral part of this Software Exhibit and are incorporated
by reference herein.

1.       DEFINITIONS

         1.1 "BCL" means the Sun binary code license contained in Software or
related documentation.

         1.2 "Channel Web" means Sun's proprietary software channel information
system.

         1.3 "End User" means the entity licensed to use Software under a BCL.
If End User is a corporation or other entity, then, for license fee purposes,
"End User" includes each individual within such corporation or entity licensed
to use Software under the BCL.

         1.4 "Error" means any reproducible failure of Software to perform its
intended function or any significant inaccuracy in its related documentation.

         1.5 "Error Correction" means a modification, procedure, patch or
routine intended to correct the practical adverse effect of an Error.

         1.6      "Fees" means the fees set forth in the Price List.

         1.7 "Guide" means the Sun Channel Program Guide or Guides relating to
Software ordered under this Software Exhibit.

         1.8 "NFR Software" means Software designated on the Channel Web as "not
for resale" software.

         1.9 "Price List" means the applicable Sun Price List current at the
time of execution of this Software Exhibit and any subsequent price changes made
by Sun under Section 3.4 of this Software Exhibit.

         1.10 "Software", in addition to the definition in the Master Terms,
includes Error Corrections, upgrades, NFR Software and Subscription Kits.

         1.11 "Software Release" means a release of Software that is designated
by Sun in its sole discretion by a change in the digit(s) to the left of the
decimal point in the Software version number [(x).x.x].
<PAGE>

         1.12 "Subscription Kit" means tangible or electronically downloadable
materials designated in the Price List as a Sun Software Subscription Program
Product and delivered in kit form.

         1.13 "Territory" means the countries or geographic regions
identified in SCHEDULE 1 to this Software Exhibit.

         1.14 "Update" means a release of a Software that is designated by Sun
in its sole discretion by a change in the digit(s) to the right of the tenths
digit in the Software version number [x.x.(x)].

         1.15 "Upgrade" means Updates, Version Releases, or Software Releases
that Sun makes generally commercially available.

         1.16 "Version Release" means a release of a Software that is designated
by Sun in its sole discretion by a change in the tenths digit in the Software
version number [x.(x).x.]

2.       APPOINTMENT OF CUSTOMER

         2.1 APPOINTMENT. Sun appoints Customer as a nonexclusive "Authorized
Software Enterprise Partner" and grants Customer the nonexclusive and
nontransferable right to distribute Software to End Users in the Territory
identified in Schedule 1.

         2.2 SOFTWARE CATEGORIES. Sun will segregate the Software in three (3)
categories (Level I, Level II, and Level III), as provided in Attachment A.
Level I Software do not require product training and authorization of Customer
by Sun to sell such Software. Customer must be trained and authorized by Sun to
sell Level II and Level III Software to its end user customers. Customer agrees
to successfully complete and pass all training and authorization obligations for
Level II and Level III Software offered by Sun.

         2.3 GUIDE. The Guide sets forth additional terms and information
concerning special promotions and programs relating to the Sun Software Channel
Program. Customer may participate in the promotions and programs, provided that
Customer is in compliance with its other obligations under the Agreement, and
any other agreement with Sun or its affiliated companies, including payment and
reporting obligations. Certain Software as identified in the Guide, may only be
purchased from Sun Authorized Distributors. Customer will not advertise, sell,
lease, or ship Software outside the Territory without Sun's prior written
consent, which shall not be unreasonably withheld. Customer may not open
Software prior to delivery to End User. Sun has the right to change the Guide at
any time withhold notice. Changes to the Guide may be provided via the Channel
Web and Customer agrees to be bound by these changes. For Customers who do not
have regular access to the internet and Channel Web, printed copies of changes
to the Guide will be provided by Sun upon written request.

         2.4 OBLIGATIONS. Customer agrees to: (a) actively market and support
Software; (b) follow up on any leads provided by Sun (which will be considered
Sun Confidential Information); (c) ensure that the marketing and support efforts
for Software are conducted identified and trained personnel within Customer who
have knowledge of Software and meet the training requirements the Guide; (d)
provide Sun on a quarterly basis with relationship planning document as

                                       -2-
<PAGE>

described in the Guide; (e) provide Sun monthly "sales out" activity (including,
but not limited to, end user name and address, dollar volume, and type and
quantity of Software shipped; (f) submit a quarterly, non-binding forecast of
Customer's projected shipments for Software; and (g) not misrepresent Software
or make any representation or warranty inconsistent with the Master Terms, this
Software Exhibit or a BCL.

         2.5 ELECTRONIC DISTRIBUTION. Customer may electronically distribute any
Software appearing on Attachment A, excluding Software pending Sun approval for
electronic distribution in the following Level II and Level III Software
categories: ISP Services Product Speciality, Network Security Product
Speciality, Messaging Product Speciality, Application Server Product Speciality,
and Portal Services Product Speciality. Prior to any electronic distribution,
Customer shall: (a) manufacture a secure, electronic version of the Product in a
digital wrapper or "envelope"; (b) appropriate mechanisms to ensure that (i)
Customer can accurately secure and account for the number of electronic
downloads and (ii) electronic distribution occurs only as expressly set forth
herein and that such file transfer protocol (FTP), HTTP and/or SHTTP and/or
other agreed upon site shall not permit any other person or entity to download
or otherwise electronically access any Product except as expressly set forth
herein; and (c) institute systems to accrue payment hereunder for each copy of
Product prior to or contemporaneous with such distribution. Customer represents
and warrants that the secure wrapper oar "envelope" cannot be unlocked and the
Product installed until the End User has registered with, and obtained an
authorized password or key from Customer.

     2.6 LIMITED TERRITORY LICENSE. Customer may, on a case by case basis as
approved in advance in writing by Sun, and as part of its electronic
distribution service to U.S. end users, permit downloading to non-U.S.
subsidiaries or to other non-U.S. business sites in the European and
Intercontinental territories.

3.       COMMERCIAL TERMS

         3.1 REPORTING. Customer will provide to Sun a written [*] by the [*]
working day of each month that includes the [*] and other information
described in the Guide. Customer acknowledges that it will not receive
marketing funds unless it has met all point-of-sale requirements. In
addition, on the first business day of each calendar quarter, upon request
from Sun, Customer will provide Sun a [*] Customer will also provide a
completed relationship management document as described in the Guide. [*]

         3.2 RETURNS. Commencing on the Exhibit Effective Date, on a
quarterly basis Customer may request to return for credit, a quantity of
Software (other than NFR Software) the net Fees for which will not exceed [*]
of the cumulative net Fees for Software shipped to Customer during the
immediately preceding quarter. Before returning any Software, Customer must
obtain from Sun a "Return Material Authorization" (RMA). Customer must place
an offsetting order with Sun for Software of dollar value at least equal to
any credit issued hereunder. No more than [*] of all returned Software may be
in opened packages. Customer may not deduct the amount of any credit from
outstanding invoices. Customer will be responsible for paying

                                       -3-
<PAGE>

all freight and shipping charges for Software returned under this Section
3.3. Stock rotation is not available for discontinued Software.

         3.3 PAYMENTS. For all Software purchased under this Software Exhibit,
Customer will pay Sun an amount equal to the Fee, less the applicable discount
set forth in SCHEDULE 1.

         3.4 PRICE CHANGES. Sun reserves the right to change the Price List,
discounts and Fees for any Software [*]. Changes which result in decrease in
Fees will take effect [*]. In the event of a change which increase Fees, Sun
will provide Customer with [*] days prior written notice. If, during the term
of this Software Exhibit Sun decreases the Fee for any Software, Customer
will be entitled to a credit toward new orders for any Software placed within
[*] after announcement by Sun. This credit will be equal to the difference
between the new Fee and the Fee paid by Customer less any previous credit
provided, for the affected Software multiplied by the quantity of that
Software in Customer's inventory as of the date of the announcement. In order
to claim this credit Customer must, within [*] days of announcement of a
change which decreases Fees, supply Sun with a written report including: (a)
the identification of all affected Software which were in Customer's
inventory immediate prior to announcement of the decrease; (b) the net Fee
for this Software before and after the decrease and (c) other information as
Sun may reasonably request. Sun will issue the credit to Customer within
sixty (60) days from the date Sun receives the report. All orders for
Software scheduled for shipment or in transit to Customer at the time of the
announcement will be adjusted to the decreased Fee.

         3.5 DELIVERY AND TITLE. Software purchase orders will be submitted to
Sun by Customer under the terms of the Software Exhibit and subject to a minimum
of Five Thousand Dollars ($5,000) per order. Sun will delivery Software Ex
Works, Sun facilities. Customer assumes all risk of loss or damage upon delivery
of Software. Customer acknowledges that it does not take title to Software, with
the exception of media and printed materials, but rather licenses Software under
the terms of this Agreement.

         3.6 UPDATES, VERSION RELEASES AND SOFTWARE RELEASES. Fees are for the
Software releases current as of the Effective Date. Except as provided in
Section 4 of this Software Exhibit, Updates, Version Releases and Software
Releases may require additional payment and be subject to addition terms. Sun
may, without Customer's approval and without incurring any liability to
Customer, modify Software discontinue its manufacture, sale or support upon
thirty (30) days prior written notice to Customer.

4.       UPGRADES AND OBSOLESCENCE

          4.1 DIRECT PURCHASES ONLY. This Section 4 applies only to Customer's
purchase of Software directly from Sun.

         4.2 UPGRADES. Subject to the terms below, Customer may upgrade unopened
Software in its inventory before the date Sun commences shipment of a new
Upgrade ("Commencement Date"):

                                       -4-
<PAGE>

                  (a) Updates from the immediately proceeding Update version
will be provided to Customer at no charge.

                  (b) Upgrades to a Version Release or Software Release from the
immediately preceding Version Release or Software Release will be provided to
Customer at no charge unless Sun increases its Fees for the new release. If Sun
increases its Fees, the new release will be made available to Customer at the
incremental price difference between the original Fee paid by Customer and the
Fee for the new release.

                  (c) To receive Upgrades under this Section 4, Customer must
provide Sun with a written request for the Upgrade, obtain an RMA and return
to Sun all Software to be upgraded. Customer will pay all shipping charges
for returned Software and Upgrades ordered under this Section 4. Sun will
credit Customer with the total amount Customer paid for the returned Software
if the return is accompanied by a firm order for the immediate delivery of
Upgrades whose total payment amount at least equals that of the returned
Software. Customer is limited to [*] upgrade requests for each Update,
Version Release and Software Release. The first request must be received by
Sun within thirty (30) days of the Commencement Date and the second request
within ninety (90) days of the Commencement Date. If Customer fails to make
the requests within the time frame described, Customer will no longer have
the right to upgrade Software under this Section 4.

                  (d) For a period of [*] days after Sun discontinues
offering Software, Customer will have the right, shipping prepaid and
retaining all risk of loss, to return the unopened discontinued Software to
Sun. Sun will credit Customer with the total amount Customer paid for the
discontinued Software if the return is accompanied by a firm order for the
immediate delivery of other Software whose total payment amount at least
equals that of the returned Software.

5.       SUBSCRIPTION KITS

         5.1 DISTRIBUTION OF SUBSCRIPTION KITS. Sun grants to Customer a
non-transferable, nonexclusive, limited license to distribute Subscription Kits
within the Territory. "Subscription Kit" means tangible or electronically
downloadable materials for Licensed Products designated in the applicable Sun
price list as a Sun Software Subscription products and delivered in a kit form.
Subscription Kits contain (i) a certificate for the Sun Software Subscription
services entitling an End User to receive drop-shipments of upgrades for
Licensed Products directly from Sun; (ii) Sun Software Subscription services
program terms; (iii) End User registration and acceptance forms to be completed
and returned to Sun; and (iv) marketing collateral.

         5.2 RESTRICTIONS. Customer may not open any Subscription Kit prior to
delivery to End Users. Customer may not sell or distribute Subscription Kits
unless the End User has first provided satisfactory proof of its license for the
most current version of the Licensed Products. Proof of End User's current
license will be satisfied by the End User showing Customer copies of its license
or install disk, cover page of the install disk manual or other form of proof
satisfactory Sun that End User is licensed to the current version level.
Subscription Kits may be purchased only from Authorized Distributors or Sun.

                                       -5-
<PAGE>

         5.3 RETURNS. In the event an End User does not accept terms provided
in the Subscription Kit and elects within [*] days of purchase to return the
Subscription to Customer, Customer must accept return of the Subscription Kit
and refund the fees paid by End User. Customer may return, shipping prepaid,
to the Authorized Distributor from which the Subscription Kit was purchased,
the Subscription Kit returned by the End User for a refund of the fees paid
by Customer, provided, however, that: (i) the Subscription Kit was properly
returned to Customer by the End User within [*] days of its purchase; and
(ii) Customer requests and has received a Return Material Authorization
("RMA") number from the Authorized Distributor within five (5) business days
of the Subscription Kit's return by the End User to Customer.

         5.4 OTHER PROGRAMS. Any additional subscription offerings and
requirements are set forth in the Guide.

6.       NOT FOR RESALE SOFTWARE

         6.1 PURCHASE. As part of the Sun Software Channel Program, Customer may
obtain not-for-resale copies Licensed Products ("NFR Software"). Licensed
Products available as NFR Software are designated on the Channel Web and may be
ordered only from Authorized Distributors and Sun. Customer may use no more than
one (1) copy of each NFR Software at each Customer business location (including
field sales offices). Each location at which NFR Software is used must be
staffed with Customer employees who have met all applicable training, testing
and authorization requirements set forth in the Guide.

         6.2 LABELING AND USE. NFR Software must at all times clearly labeled
"Not For Resale Software" and may be used only for purposes of internal staff
training, presales support, customer demonstrations and Sun approved marketing.

         6.3 DESTRUCTION OF NFR SOFTWARE. Applicant must destroy NFR Software:
(i) upon notice that the NFR Software has been discontinued or is available as a
new revision release or (ii) if it is no longer being used on a regular basis by
Applicant for the purposes described in Section 6. To obtain new revision
releases of NFR Software, Applicant may provide Authorized Distributor or Sun
with written certification that the NFR Software has been destroyed.

         6.4 RESTRICTIONS. Applicant may not use the NFR Software development of
software programs; nor copy, resell or distribute the NFR Software to any third
party. In addition this Section 6, Applicant's use of NFR Software is further
subject to the terms of the BCL which accompanies the software.

7.       SUPPORT

         During the term of this Agreement, Customer will provide prospective
End Users with complete pre-sale support, and End Us with post-sale support as
provided in the Guide.

8.       SUN SOFTWARE CHANNEL PROGRAM WEB SITE

         Subject to the following, Sun will provide Customer with an account
login, password and the site URL for the Channel Web.

                                       -6-
<PAGE>

         8.1 USE OF WEB CONTENTS. Title to and ownership in all products,
including software products, documents and other program information contained
in the Channel Web ("Web Contents") will solely and exclusively be and remain in
Sun and its licensors. Customer may use Web Contents only for: (a) its internal
evaluation purposes and (b) at its primary business facility. If the software
products accessed as part of Web Contents contain third party code, Customer's
use of the products may be subject to additional terms. Customer is not
authorized to make any modifications or revisions to Web Contents nor distribute
Web Contents to any third party. Customer will indemnify Sun from all liability,
expense, and damage of any type arising from Customer's violation of this
Section 8.1.

         8.2 NO SUPPORT FOR WEB CONTENTS. Customer acknowledges that Sun is not
obligated to make any of Web Contents available as a final Sun product. Sun
retains the right to make any modifications or changes to Web Contents at any
time without prior notice to Customer. Web Contents are provided strictly on an
"AS IS" basis. Customer acknowledges that no support will be provided by Sun for
the software product(s) contained in the Web Contents.

9.       WARRANTIES AND DISCLAIMER

         Sun warrants that for a period of ninety (90) days from Customer's
receipt of Software provided under this Software Exhibit the media on which the
Software is furnished will be free of defects in materials and workmanship under
normal use. Customer's exclusive remedy and Sun's entire liability under this
limited warranty will be for to replace the Software media.

10.      ADDITIONAL LIMITATIONS

         IN NO EVENT WILL ANY ENTITY WORKING WITH SUN THE DEVELOPMENT AND SUPPLY
OF ANY LICENSED PRODUCT OR PART THEREOF BE LIABLE UNDER THIS AGREEMENT.

11.      TERM AND TERMINATION.

         This Software Exhibit will commence upon the Software Effective Date.
Unless earlier terminated as provided in the Master Terms, this Software Exhibit
will remain in effect until the date established in following schedule:

            EFFECTIVE DATE                            EXPIRATION DATE
            --------------                            ---------------
                                                      (OF THE FOLLOWING YEAR)
                                                      -----------------------
            July 1 - September 30                      September 30

            October 1 - December 31                    December 31

            January 1 - March 31                       March 31

            April 1 - June 30                          April 30

                                       -7-
<PAGE>

         IN WITNESS WHEREOF, the parties have authorized their representatives
to execute this Software Exhibit effective as of the Effective Date written
below.

SUN MICROSYSTEMS, INC.                        INTRAWARE, INC.

By:  /s/ Alton D. Page                        By:   /s/ Donald M. Freed
    --------------------------------------         ---------------------------

Name:    Alton D. Page                        Name:     Donald M. Freed
      -------------------------------               --------------------------
           (printed or typed)                          (printed or typed)

Title:   VP Operations                        Title:   EVP/CFO
       ------------------------------                -------------------------

Effective Date:    8/31/99                    Effective Date:  8/31/99
                ---------------------                         ----------------

<PAGE>

                                   SCHEDULE I

                               TO SOFTWARE EXHIBIT
                                     (DVAR)

1.       Territory:  United States and Canada

2.       Discount Schedule: Customer's discount for the Sun-Netscape Alliance
Software shall be [*] off the MSRP as set forth in the Sun-Netscape Alliance
Price List for the first [*] of revenue from fees. Customer's discount for
revenue in excess of [*] shall be [*] off the MSRP as set forth in the
Sun-Netscape Alliance Price List.

3.       Discretionary Rebates/Offset: If and to the extent Sun makes
available to its resellers a discretionary rebate program to which Customer,
as a Sun reseller would be entitled, then the rebate will not initiate until
it exceeds [*]. In the event Customer is entitled to such rebate, then Sun
will only be obligated to pay a rebate in the amount that exceeds [*].

4.       "Accumulated Savings" is calculated as [*] of MSRP, as set forth in
the Sun-Netscape Alliance Price List, of Products sold by Customer plus the
total of discretionary rebates forfeited by Customer at any point in time.
Accumulated Savings shall not exceed [*]. As of September 30, 2000, or
sooner, if terminated, if the Accumulated Savings is not equal to [*],
Customer will remit to Sun an amount equal to the difference between the
Accumulated Savings and [*], or the prorated portion thereof, within thirty
days from September 30, 2000 or the date of termination. This provision shall
survive termination of the Agreement.

5.       Co-op Accrual Program: Customer will accrue [*] Co-op funds on
Alliance Software net revenue sold, and be eligible to access Market
Development Funds pursuant to the Guide.

<PAGE>

                                  ATTACHMENT A

               ALLIANCE PRODUCTS - LEVEL I, LEVEL II AND LEVEL III

I.       LEVEL I ALLIANCE PRODUCTS(S)

                  Netscape Directory Server

                  Netscape Certificate Management System

                  Netscape Delegated Administrator

                  Netscape Meta-Directory

                  Netscape Directory for Secure E-Commerce

                  Netscape Process Manager

                  Netscape Calendar Server

                  Netscape Messaging Server

                  Netscape Messaging Server Hosting

                  Netscape Hosting Suite

                  Netscape Enterprise Server

                  Netscape FastTrack Server

                  Netscape SuiteSpot Standard

                  Netscape SuiteSpot Professional

II.      LEVEL II AFFIANCE PRODUCT(S)

                  ISP SERVICES PRODUCT SPECIALITY

                           Solaris ISP Server

                  NETWORK SECURITY PRODUCT SPECIALITY

                           SunScreen EFS

                           SunScreen SecureNet

                           SunScreen SKIP

                           SunScreen SPF-200

                  SUITESPOT PRODUCT SPECIALITY

                           Netscape SuiteSpot (Standard/Professional)
<PAGE>

III.     LEVEL III ALLIANCE PRODUCT(S)

                  MESSAGING PRODUCT SPECIALITY

                           Sun Internet Mad Server

                           Sun Calendar Server

                  APPLICATION SERVER PRODUCT SPECIALITY

                           Netscape Application Server

                           Netscape Application Builder

                           Netscape Extension Building

                           Netscape Extension for MQSeries

                           Netscape Extension for Tuxedo

                           Netscape Application Server for R/3

                           Netscape Application Server for CICS/MS

                           NetDynamics Application Server

                           NetDynamics PAC for COM

                           Net Dynamics PAC for SAP

                           NetDynamics PAC for PeopleSoft

                           NetDynamics PAC SDK

                           Net Dynamics Developer Studio

                  E-Commerce Product Speciality

                           Netscape BuyerXpert

                           Netscape MerchantXpert

                           Netscape SellerXpert

                           Netscape BillerXpert

                           Netscape PublisherXpert

                           Netscape TradingXpert

                           Netscape ECXpert

                           Netscape ECXpert Enterprise

                           Netscape ECXpert Extension for MQSeries

                           Netscape ECXpert Extension for Oracle Applications

                           Netscape ECXpert Extension for SAP R/3

                           Netscape ECXpert Mercator Authoring Tool

                                       -2-
<PAGE>

                           Netscape ECXpert SAP R/3 Authoring Tool

                  PORTAL SERVICES PRODUCT SPECIALITY

                           Custom Netcenter

                           I-Planet

                                       -3-

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