Document:

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                                                                   Exhibit 10.16

[FIREPOND LOGO]

SIGNATURE PLUS SOFTWARE LICENSE AGREEMENT ("AGREEMENT")

This Agreement is made effective this 18th day of December, 1998 by and between
FirePond, Inc., a Minnesota corporation with offices at 1983 Premier Drive,
Mankato, Minnesota, 56001, ("FirePond"), and BCBSM, Inc., dba Blue Cross and
Blue Shield of Minnesota, a corporation having a place of business at 3535 Blue
Cross Road, St. Paul, Minnesota 55122, ("Licensee").

Whereas FirePond desires to grant Licensee and Licensee desires to accept from
FirePond, a license to use Signature Plus Software and the Signature Plus
ToolKit upon the terms and conditions hereinafter set forth. NOW, THEREFORE,
FirePond and Licensee agree as follows:

1. DEFINITIONS

   1.1. "Attachment(s)" means any writing that is specifically identified as
   attached to this Agreement and forming part of this Agreement and is signed
   by authorized representatives of both parties.

   1.2. "Documentation" means FirePond's standard documentation, which is
   delivered to Licensee under this Agreement, including FirePond's standard
   manuals, functional specifications, minimum hardware configuration required
   and third party software required.

   1.3. "Proprietary Information" means (i) with respect to FirePond, the
   Software, Tools and Documentation and any complete or partial copies thereof,
   the concepts, techniques, ideas and know-how in such programs, any
   third-party software licensed with or as part of the Software or Tools,
   benchmark results, and any other information identified or reasonably
   identifiable as confidential and proprietary information of FirePond or their
   licensors ("FirePond Proprietary Information"); and (ii) with respect to
   Licensee, information identified or reasonably identifiable as the
   confidential and proprietary information of Licensee ("Licensee Proprietary
   Information"), provided that, any part of the FirePond or Licensee
   Proprietary Information which: (a) is or becomes publicly available through
   no act or failure of the other party; or (b) was or is rightfully acquired by
   the other party from a source other than the disclosing party prior to
   receipt from the disclosing party; or (c) becomes independently available to
   the other party as a matter of right, shall be excluded.

   1.4. "Software" means all Signature Plus software including Signature Plus
   Sales (for laptops and/or desktops), Signature Plus Web (available via the
   Internet), and EBridge identified in the Documentation in machine-readable
   form licensed to Licensee hereunder, including all corrections,
   modifications, enhancements and updates to the Software.

   1.5. "Tools" means the Signature Plus ToolKit software identified in the
   Documentation in machine-readable form licensed to Licensee hereunder,
   including all corrections, modifications, enhancements and updates to the
   Software.

   1.6. "Use" means to load, execute, employ, utilize, store, or display the
   Software for the limited purpose of helping Licensee salespeople and
   customers learn about, sell and/or buy products or services manufactured,
   distributed or sold by Licensee and to load, execute, employ, utilize, store,
   or display Tools for the limited purpose of supporting the Software and to
   maintain, distribute and synchronize Licensee's data to be used in the
   Software.

   1.7. "Licensee" means those entities set forth in an Attachment "Licensee."

2. GRANT OF LICENSE

   2.1. Subject to the terms and conditions of this Agreement FirePond grants
   and Licensee accepts a non-exclusive, non-transferable license with rights to
   Use the Software, Documentation and other FirePond Proprietary Information
   provided by FirePond to Licensee and to sublicense the Software to the number
   of individuals identified in an Attachment who are authorized to Use the
   Signature Plus Sales version of the Software ("Named Users") and to allow
   access to the Software to the number of individuals identified in an
   Attachment as allowed access to the Signature Plus Web version of the
   Software ("Concurrent Users"). In order to sublicense the Software to Named
   Users, Licensee shall have in effect with such Named Users agreements
   sufficient to obligate such Named Users to terms substantially similar to the
   terms of Exhibit A. Licensee may transfer the Software from one Named User to
   another Named User provided the Software is promptly deleted by the Named
   User no longer using the Software and provided Licensee shall notify FirePond
   quarterly of such transfers.

   2.2. Subject to the terms and conditions of this Agreement FirePond grants
   and Licensee accepts a non-exclusive, non-transferable license with rights to
   Use the Tools at the sites identified in the Signature Plus License Fee
   Attachment ("Designated Site(s)"). Licensee may use the Tools on as many
   single computer stations as needed at the Designated Site. Licensee may
   transfer the Tools from one Designated Site to another Designated Site upon
   prior written notice to FirePond. The Tools must be promptly deleted in their
   entirety from the Designated Site no longer in use. Licensee may use a
   third-party certified by FirePond to Use the Tools on behalf of Licensee.

   2.3. Licensee shall maintain accurate records of all Named Users. Upon
   FirePond's request, Licensee shall provide FirePond with a copy of such
   records and executed agreements. In addition, FirePond shall have the right
   to inspect such records for compliance with the terms of this Agreement no
   more frequently than annually, during Licensee's normal business hours and
   upon reasonable advance notice. Licensee shall cooperate with FirePond to
   ensure that each Named User upholds the requirements imposed upon them
   through this Agreement or the agreement set forth in Exhibit A and will take
   reasonable steps to ensure that such Named Users comply with such terms and
   conditions. Licensee shall not be required to track Concurrent Users.
   Licensee agrees to notify FirePond immediately after gaining knowledge of the
   possession, use, disclosure or reproduction of Software or Tools by any
   person or other party not authorized to have the benefit of such possession,
   use, disclosure, or reproduction and to cooperate with FirePond and its
   representatives in any investigation of and litigation against such
   unauthorized use.

   2.4. Licensee may make one copy of the Software and Tools for archival
   purposes. Licensee may reproduce or copy any portion of the Documentation
   into machine-readable or printed form for its internal use and for
   distribution to Named Users. Licensee shall not remove any proprietary,
   copyright, trademark, or service mark legend from the Software, Tools,
   Documentation or FirePond Proprietary Information and shall include such
   legends on any complete or partial copies of the Software, Tools,
   Documentation or FirePond Proprietary Information.

3. FEES AND PAYMENT TERMS

   3.1. In consideration of the licenses granted hereunder, Licensee shall pay
   to FirePond license fees for the Software and Tools as set forth in
   Attachments. The amount of license fees shall be calculated based on the
   total number of Named Users for the Software, the total number of Concurrent
   Users accessing the Software, and the number of Designated Sites for Tools.
   As set forth in an Attachment, fees for Maintenance Services shall be paid
   annually in advance in an amount calculated as a percentage of the License
   Fees. FirePond and Licensee shall agree to any other services under a
   separate Services Agreement.

   3.2. Travel expenses and incidental expenses of FirePond shall be billed in
   accordance with the current Blue Cross and Blue Shield of Minnesota Per Diem
   Expense Allowance for Consultants Policy, a current copy of which is attached
   hereto as Attachment A. FirePond shall bill such fees and expenses monthly.

   3.3. Invoices are payable in full upon receipt of invoice. If the payment of
   such invoice(s) is subject to a good faith dispute between the parties, the
   project managers at FirePond and Licensee shall use their best efforts to
   expeditiously resolve the dispute. If the project managers are unable to
   resolve the dispute within fifteen (15) days, it shall be referred to a
   FirePond executive or his/her designee and a Licensee executive or his/her
   designee for mutual resolution. If the dispute is not resolved at the
   executive level within fifteen

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   (15) days, FirePond shall have the right to bring suit on an open account.
   All payments are to be made in U.S. dollars. Licensee shall pay a one and one
   half percent penalty per month retroactive to the invoice date for payment(s)
   received after thirty (30) days.

4. PROPRIETARY RIGHTS

   4.1. Licensee acknowledges ownership of and title in and to all intellectual
   property rights, including patent, trademark, service mark, copyright, and
   trade secret rights, in the FirePond Proprietary Information are and shall
   remain in FirePond and its respective licensors.

   4.2. Except as permitted in this Agreement, Licensee shall not copy,
   translate, disassemble, or decompile, nor create or attempt to create, by
   reverse engineering or otherwise the source code from the object code of the
   Software or Tools licensed hereunder or use it to create a derivative work,
   unless authorized in writing by FirePond.

   4.3. In order to protect the rights of FirePond and Licensee in their
   respective Proprietary Information, FirePond and Licensee agree as follows:

   4.3.1. Neither party shall, without the other party's prior written consent,
   disclose, provide or make available any of the Proprietary Information of the
   other party in any form to any person, except to bona fide employees,
   officers, directors, or consultants or such party whose access is necessary
   to enable such party to exercise its rights hereunder. Each party agrees that
   prior to disclosing any Proprietary Information of the other party to any
   consultant, it will obtain from that consultant a written acknowledgement
   that such consultant will be bound by the same terms as specified in this
   Section 4.

   4.3.2. Licensee and FirePond acknowledge that any disclosure to third parties
   of Proprietary Information may cause immediate and irreparable harm to the
   owner of the disclosed Proprietary Information; therefore, each party agrees
   to take all reasonable steps and the same protective precautions to protect
   the Proprietary Information from disclosure to third parties as with its own
   proprietary and confidential information.

   4.4. Upon any termination hereunder, Licensee shall immediately cease Use of
   the Software, Tools, Documentation and other FirePond Proprietary Information
   and shall irretrievably delete and/or remove such items from all machines and
   media and return such Software, Tools, Documentation and Proprietary
   Information to FirePond within 30 days. Within 30 days after any termination,
   FirePond shall return the Licensee Proprietary Information to Licensee.

5. MAINTENANCE SERVICES

   Following expiration of the warranty period as defined in Section 7, Licensee
   shall purchase and FirePond shall provide Licensee the maintenance services
   identified in an Attachment.

6. INDEMNIFICATION

   6.1. Subject to Section 6.2, if one party promptly notifies the other party
   in writing of a third-party claim against it, the other party shall indemnify
   the notifying party against all claims, liabilities, and costs, including
   reasonable attorneys' fees reasonably incurred in the defense of any claim
   brought against the notifying party by third parties alleging that the
   notifying party's Use of the Software, Tools and Documentation or data or
   other information supplied by the other party infringes or misappropriates:
   (i) any United States patent; or (ii) a United States copyright; or (iii)
   trade secret rights, provided that, the notifying party promptly notifies the
   other party in writing of any such claim and the other party is permitted to
   control fully the defense and any settlement of such claim. The notifying
   party shall cooperate fully in the defense and may appear, at its own
   expense, through counsel reasonably acceptable to the other party. The other
   party may, in its sole discretion, settle any such claim on a basis requiring
   FirePond to substitute for the Software, Tools and Documentation alternative
   substantially equivalent non-infringing programs and supporting
   documentation. The other party alone shall be responsible for taking such
   actions which it determines are reasonably necessary or desirable in its sole
   discretion in connection with any infringement or alleged infringement by a
   third party of any portion of the Software, Tools and Documentation, provided
   that should the software, Tools, or Documentation as delivered by licensee
   become the subject of an infringement claim: Firepond at its sold expense
   either (i) procure for licensee the right to continue to use the Software,
   Tools, and Documentation as contemplated hereunder, or (ii) modify the
   Software, Tools, or Documentation to eliminate any infringement claim,
   provided that the Software and Tools' performance must remain the same as
   provided for in the specifications, or (iii) replace the Software and Tools
   with an equally suitable, compatible, and functionally equivalent
   non-infringing product at no additional charge to licensee. If none of these
   options are reasonably available to Firepond after executing its best efforts
   to implement such options, then Firepond shall accept return of the Software,
   Tools, and Documentation at Firepond's sole cost and expense and FirePond
   shall pay to Licensee up to $3,500,000 as liquidated damages, as amortized
   over five year useful life measured from the date of delivery..

   6.2. FirePond makes no representation with respect to the possibility of
   infringement if the claim of infringement is caused by: (1) Licensee's, Named
   User's or Concurrent User's misuse or modification of Software, Tools and/or
   Documentation; (2) Licensee's, Named User's or Concurrent User's failure to
   use corrections or enhancements made available by FirePond; (3) Licensee's,
   Named User's or Concurrent User's use of Software, Tools and/or Documentation
   in combination with any product or information not owned or developed by
   FirePond; or (4) Licensee's distribution, marketing or use for the benefit of
   third parties other than Named Users or Concurrent Users of Software, Tools
   and/or Documentation or distribution, marketing or use for the benefit of
   third parties.

   6.3. THE PROVISIONS OF THIS SECTION 6 STATE THE SOLE, EXCLUSIVE, AND ENTIRE
   LIABILITY OF FIREPOND AND ITS LICENSORS TO LICENSEE AND LICENSEE'S SOLE
   REMEDY WITH RESPECT TO THE INFRINGEMENT OF THIRD-PARTY INTELLECTUAL PROPERTY
   RIGHTS.

7. WARRANTY

   7.1. FirePond warrants that the Software and Tools will as delivered
   materially conform to the functional specifications contained in the
   Documentation and Exhibit B-2 ("Small Group Track") for 90 days following
   execution of this Agreement. Services to be provided by FirePond during the
   warranty period are those maintenance services identified in Section 5.
   FirePond also warrants that the Software and Tools as delivered will be
   materially free of all viruses, bombs and other self enacting devices that
   could impair the functionality of the Software or Tools.

   7.2. Should any component of the Software or Tools fail to conform materially
   to the functional specifications therefore during the warranty period,
   FirePond's sole obligation shall be, at FirePond's option, to correct the
   defect by bringing the performance of the Software or Tools into material
   compliance with the functional specifications or to replace the defective
   component.

   FirePond shall use reasonable commercial efforts to correct the defect by
   bringing the performance of the Software into material compliance with the
   functional specifications or to replace the defective component within thirty
   (30) days or such longer period as is reasonable in the circumstances where
   FirePond proceeds with all due diligence to cure such defect. In the event
   FirePond is unable to correct or replace such defect within the stated time
   period, Licensee shall refund the then present value of such Software to
   Licensee, as amortized over a five (5) year useful life measured from the
   date of delivery.

   7.3. FirePond does not warrant that the Software or Tools will operate
   uninterrupted nor that they will be free from minor defects or errors which
   do not materially affect such performance nor that the applications contained
   in the Software or Tools are designed to meet all Licensee's or Named Users'
   or Concurrent Users' business requirements. FirePond makes no representation
   or warranty as to the third-party software identified in the Documentation as
   required to operate the Software or Tools.

   7.4. FirePond represents and warrants to Licensee that: (i) the Software and
   Tools shall, as delivered: (a) operate correctly and consistently with dates
   and times before, during, and after the year 2000, and date and time ranges
   before, spanning, and after 0:00 hours on January 1, 2000, and in a

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   manner identical to that in which the Software and Tools operate with dates,
   times and date and time ranges prior to the year 2000; (b) utilize data
   structures (databases, data files, etc.) which accommodate and provide
   4-digit date century recognition; (c) operate in a manner which treats the
   year 2000 as the year immediately following the year 1999 to 2000 without
   material functional or data abnormality; and (d) manage and manipulate data
   involving the transition of dates from 1999 to 2000 without material
   functional or data abnormality; (ii) the Software and Tools as delivered will
   lose no material functionality with respect to the introduction of record
   containing dates falling on or after January 1, 2000 provided that all
   products (for example, hardware and software) used with the Software and
   Tools properly exchange accurate date data with the Software and Tools. The
   representations and warranties provided herein shall not be limited to, and
   shall survive for so long as maintenance services are purchased. FirePond
   shall be responsible for and shall indemnify Licensee from and against all
   losses and damages of any kind or nature incurred by Licensee up to the
   amount of license fees paid hereunder as a result of any breach of the
   foregoing representations and warranties.

   7.5. FIREPOND DISCLAIMS ALL OTHER WARRANTIES EXPRESS OR IMPLIED, INCLUDING
   WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
   A PARTICULAR PURPOSE EXCEPT TO THE EXTENT THAT ANY WARRANTIES IMPLIED BY LAW
   CANNOT BE VALIDLY WAIVED.

8. LIMITATION OF LIABILITY

   8.1. Subject to the limited warranty set forth in Section 7, Licensee's sole
   and exclusive remedies for any damages or loss in any way connected with the
   Software or Tools or services furnished by FirePond, whether due to
   FirePond's negligence or breach of any other duty, shall be, at FirePond's
   option: (i) replacement of the Software or Tools or performance of services;
   or (ii) return or credit of an appropriate portion of any payment made or to
   be made by Licensee with respect to the applicable portion of the Software or
   Tools or services. The foregoing limitation of liability does not apply to
   infringement of the property rights referred to in Section 6, or to personal
   injury or death caused solely by the gross negligence or willful misconduct
   of FirePond. With respect to damage to tangible property, FirePond will not
   be responsible in any amount in excess of the amount by which such damage is
   paid by FirePond's liability insurance.

   8.2. ANYTHING TO THE CONTRARY HEREIN NOTWITHSTANDING, UNDER NO CIR-CUMSTANCES
   SHALL FIREPOND AND ITS LICENSORS BE LIABLE TO LICENSEE OR ANY OTHER PERSON OR
   ENTITY FOR SPECIAL, INCIDENTAL, CON-SEQUENTIAL, OR INDIRECT DAMAGES, LOSS OF
   GOOD WILL OR BUSINESS PROFITS, WORK STOPPAGE, DATA LOSS, COMPUTER FAILURE OR
   MALFUNCTION, ANY AND ALL OTHER COMMERCIAL DAMAGES OR LOSS, OR EXEMPLARY OR
   PUNITIVE DAMAGES UNLESS SUCH DAMAGES OR LOSSES ARE DUE TO THE WILLFUL
   MISCONDUCT OF FIREPOND.

9. EFFECTIVE DATE, TERM AND TERMINATION

   9.1. This Agreement shall become effective upon execution by both parties and
   shall continue in effect unless the Agreement is terminated under the terms
   of Section 9.2 below.

   9.2. This Agreement and the license granted hereunder shall terminate upon
   the earliest to occur of the following: (i) thirty days after Licensee gives
   FirePond written notice of Licensee's desire to terminate this Agreement, for
   any reason, but only after payment of all License and Maintenance Fees then
   due and owing; (ii) thirty days after FirePond gives Licensee notice of
   Licensee's material breach of any provision of the Agreement (other than
   Licensee's breach of its obligations under Section 4 (Proprietary Rights ) or
   Section 11 (Assignment), which breach shall result in immediate termination),
   including more than thirty days delinquency in Licensee's payment of any
   money due hereunder, unless Licensee has cured such breach during such thirty
   day period; (iii) immediately if Licensee or FirePond files a petition for
   bankruptcy or insolvency, has an involuntary petition filed against it,
   commences an action providing for relief under bankruptcy laws, files for the
   appointment of a receiver, or is adjudicated a bankrupt concern.

   9.3. In the event of any termination hereunder, Licensee shall not be
   entitled to any refund of any payments made by Licensee except as otherwise
   provided in this Agreement.

   9.4. The following sections of this Agreement survive expiration or
   termination of this Agreement: Section 4 (Proprietary Rights), Section 6
   (Indemnification), Section 7.4 (Warranty Disclaimer), Section 8 (Limitation
   of Liability), Section 11.7 (Governing Law), and Section 13 (Export Control).

10. ASSIGNMENT

   Licensee may not, without FirePond's prior written consent, assign, delegate,
   sublicense, pledge, or otherwise transfer this Agreement, or any of its
   rights or obligations under this Agreement, or the Software, Tools or
   Documentation, to any party, except as set forth herein. Any permitted
   assignment of this Agreement shall provide that the provisions of this
   Agreement shall continue in full force and effect and that Licensee shall
   guaranty the performance of its assignee and shall remain liable for all
   obligations hereunder.

11. GENERAL

   11.1. Force Majeure. Neither FirePond nor Licensee shall be deemed to be in
   default of any provision of this Agreement for any failure in performance
   resulting from acts or events beyond the reasonable control of FirePond or
   Licensee.

   11.2. No Waiver. If either party should waive any breach of any provision of
   this Agreement, it shall not thereby be deemed to have waived any preceding
   or succeeding breach of the same or any other provision hereof.

   11.3. Severability. If any provision of this Agreement is held to be
   unenforceable, this Agreement shall be construed without such provision.

   11.4. Agreement Binding/Entire Agreement. This Agreement shall be binding
   upon and inure to the benefit of the parties hereto and their respective
   successors and permitted assigns. This Agreement and each Attachment hereto
   constitute the complete and exclusive statement of the agreement between
   FirePond and Licensee, and all previous representations, discussions, and
   writings are merged in, and superseded by, this Agreement. This Agreement may
   be modified only by a writing signed by both parties. This Agreement and each
   Attachment hereto shall prevail over any additional, conflicting, or
   inconsistent terms and conditions which may appear on any purchase order or
   other document furnished by Licensee to FirePond.

   11.5. Rights to Injunctive Relief. Both parties acknowledge that remedies at
   law may be inadequate to provide FirePond or Licensee with full compensation
   in the event of Licensee's material breach of Sections 2 (Grant of License),
   Section 4 (Proprietary Rights), Section 13 (Export Control), or FirePond's
   material breach of Section 4 with respect to Licensee's Proprietary
   Information, and that the non-breaching party shall therefore be entitled to
   seek injunctive relief in the event of any such material breach.

   11.6. Taxes and Duties. Licensee is responsible for all taxes concerning the
   Software and Tools, excluding taxes based on FirePond's income. If Licensee
   will sublicense Software to Named Users, Licensee shall submit a resale
   exemption certificate to FirePond. Licensee will self-asses use tax in the
   event Licensee does not sublicense Software or if Licensee provides Software
   to Named Users without consideration to Licensee.

   11.7. Governing Law. This Agreement shall be governed by and construed under
   the State of Minnesota law without reference to its conflicts of law
   principles. Any legal action or suit related to this agreement shall be
   brought exclusively in the courts of Minnesota. Both parties agree that the
   courts of Minnesota are a convenient forum for the resolution of disputes.

   11.8. Notices. All notices or reports which are required or may be given
   pursuant to this Agreement shall be in writing and shall be deemed duly given
   when delivered to the respective executive offices of FirePond and Licensee
   at the addresses first set forth above.

   11.9. Publicity. Neither party shall use the name of the other in publicity,
   advertising, or similar activity, without the prior written consent of the
   other.

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12. ARBITRATION

Except for the right of either party to apply to a court of competent
jurisdiction for a Temporary Restraining Order or other provisional remedy to
preserve the status quo or prevent irreparable harm pending the selection and
confirmation of a panel of arbitrators, and for the right of FirePond to bring
suit on an open account for any payments due FirePond hereunder, (after
expiration of the informal dispute resolution as identified in Section 3.3) any
controversy or claim arising out of or relating to this Agreement shall be
settled by arbitration in Minneapolis, Minnesota, in accordance with the
Commercial Arbitration Rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrators may be entered in any court
having jurisdiction thereof. Arbitration shall be conducted by a panel of three
members, FirePond and Licensee each selecting one member and the third member,
who shall be chairman, selected by agreement between the other two members. The
chairman shall be an attorney-at-law, and the other members shall have a
background or training in computer law, computer science, or marketing of
computer products. The arbitrators shall have the authority to grant injunctive
relief in a form substantially similar to that which would otherwise be granted
by a court of law.

13. EXPORT CONTROL

   13.1. Licensee shall comply with United States export rules and regulations
   as they relate to Software, Tools and Documentation. Without obtaining any
   necessary licenses, Licensee will not export or re-export outside the United
   States Software, Tools or Documentation, whether directly or indirectly, and
   will not cause, approve or otherwise intentionally facilitate others in so
   doing. Licensee shall indemnify FirePond against any claims, losses,
   liability, or damages suffered or incurred by FirePond arising out of or
   related to any violation by Licensee of any United States or any foreign laws
   or regulations relative to the Licensee or Named User use, export, or
   re-export of Software, Tools or Documentation to or within any country
   outside the United States. Licensee shall ensure that each Named User
   complies with United States export rules and regulations as they relate to
   Software.

   13.2. Licensee shall cooperate with FirePond to protect FirePond's
   intellectual property rights in foreign jurisdictions to which Software,
   Tools or Documentation are used or distributed as reasonably requested by
   FirePond.

   13.3. FirePond may require changes in the agreement set forth in Exhibit A
   from time to time or with respect to use in a particular country.

   13.4 The Licensee acknowledges that the Statement of Direction is an
   expression of intent for further development for the health care industry.
   Licensee agrees that it has not relied on the potential development in
   executing this Agreement and further agrees that the availability of said
   development shall not affect Licensee's payment obligation of the license fee
   set forth in the License Fee Attachment.

14. ESCROW

FirePond warrants that the source code for the Software as it is or as it
becomes available, will be deposited in an escrow account maintained at Data
Securities International, Inc. (the "Escrow Agent"). FirePond will from time to
time deposit in an escrow account copies of all new releases of the source code
for the Software.

FirePond or FirePond's trustee in bankruptcy shall authorize the Escrow Agent to
make and release a copy of the source code to Licensee upon the occurrence of
any of the following events:

(a)   FirePond has ceased its ongoing business operations relating to the
      licensing of software; or
(b)   FirePond fails to carry out the material maintenance obligations imposed
      on it pursuant to this Agreement after reasonable opportunity has been
      provided to FirePond to perform such obligations; or
(c)   The existence of any one or more of the following circumstances, if
      uncorrected for more than ninety (90) days: (i) entry of an order of
      relief under Title 11 of the United States Code; the making by FirePond of
      the general assignment for the benefit of creditors; (ii) the appointment
      of a general receiver or trustee in the bankruptcy of FirePond's business
      or property; or (iii) action by FirePond under any state insolvency or
      similar law for the purpose of bankruptcy, reorganization or liquidation.
      The occurrence of the described events shall not constitute reason for the
      release of the source code if, within the specified ninety (90) day
      period, FirePond (including its receiver or trustee in bankruptcy)
      provides to Licensee's adequate assurances, reasonably acceptable to
      Licensee, of its continuing ability and willingness to fulfill all of its
      maintenance and support obligations.

In the event of release under this Agreement, Licensee agrees that it will treat
and preserve the source code of the Software as a trade secret of FirePond in
accordance with the same precautions adopted by Licensee to safeguard its own
trade secrets against unauthorized use and disclosure. Release under this
provision shall not extend Licensee any greater rights or lesser obligations
than are otherwise provided or imposed under this Agreement.

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have duly
executed this Agreement to become effective as of the date first above written.

BCBSM, INC., DBA BLUE CROSS AND BLUE SHIELD OF MINNESOTA

By:    /s/ John N. Ounjian              /s/ Timothy M. Peterson
   ------------------------------------------------------------

Name:  John N. Ounjian                  Timothy M. Peterson
     ----------------------------------------------------------

Title: CIO                              CFO
      ---------------------------------------------------------

Date:  12/18/98
     ----------------------------------------------------------

FIREPOND, INC.

By:    /s/ Klaus P. Besier
   ------------------------------------------------------------

Name:  Klaus P. Besier
     ----------------------------------------------------------

Title: CEO
      ---------------------------------------------------------

Date:  12/18/98
     ----------------------------------------------------------

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                                  Attachment A

                    Blue Cross and Blue Shield of Minnesota
                   Per Diem Expense Allowance for Consultants
                                January 1, 1998

Transportation
     *    Air Travel -- Reimbursement will be made for air fares purchased at
          coach rates. The consulting firm will make all reasonable efforts to
          purchase tickets at the lowest competitive market rate.

     *    Ground Transportation -- Reimbursement will be made for ground
          transportation not to exceed $40 per day.

Lodging
     *    Hotel -- Lodging will be paid at the per diem rate of $91.

Meals
     *    Meals -- Meal expense will be paid at the per diem rate of $38.

Other Expenses
     *    Reimbursement for any expenses other than Transportation, Lodging,
          and Meals will be the responsibility of the consultant unless
          otherwise specified in the contract.

BCBSM, Inc. reserves the right to request and receive receipts for any expenses
incurred by the contractor that pertains to this contract.

Note: Rates for lodging and meals are based on per diem allowances as published
in the Federal Register, Volume 62, #231 dated Tuesday, December 2, 1997 and
the U.S. Master Tax Guide.

SIGNATURES

IN WITNESS WHEREOF, the parties have signed this Attachment by their duly
authorized representatives.

BCBSM, Inc. dba Blue Cross and Blue Shield        FirePond, Inc.
of Minnesota

By: /s/ John N. Ounjian, /s/ T.M. Peterson        By: /s/ Klaus P. Besier

Name: John N. Ounjian, Timothy M. Peterson        Name: Klaus P. Besier

Title: CIO, CFO                                   Title: CEO

Date: 12/18/98                                    Date: 12/18/98

<PAGE>   6

[FIREPOND LOGO]

EXHIBIT A
SOFTWARE NAMED USER AGREEMENT

1. DELIVERY
Upon acceptance of these terms, Named User will be provided electronic media
containing Software, as ordered by Named User through Licensee.

2. GRANT OF LICENSE
Subject to becoming effective as set forth above, Named User is hereby granted a
non-exclusive, non-transferable right to use Software for the limited purpose of
helping Named User and Named User's customers learn about, sell and/or buy
products manufactured, distributed or sold by Licensee. Named User agrees that
Software shall be used exclusively by Named User's authorized employees and only
for the limited purpose set forth above. The electronic media and Software shall
remain the property of Licensee and/or its suppliers. All applicable rights in
patents, copyrights, trade secrets and other confidential and proprietary
information, trademarks, and any other intellectual property rights in Software
are and shall remain in Licensee and/or its suppliers. Named User is forbidden
from copying, transferring possession, using, or permitting others to copy,
possess or use the electronic media and/or Software for any purpose not
specifically authorized in this Agreement. Named User warrants that any
individuals authorized by Named User to access Software shall be bound by the
terms and conditions of this Agreement.

3. TERM OF AGREEMENT
The term of this Agreement shall commence upon execution of the Agreement and
shall continue until termination as provided herein.

4. SOFTWARE SUPPORT

   4.1 Warranty Disclaimer

   LICENSEE AND ITS SUPPLIERS MAKE AND NAMED USER RECEIVES NO REPRESENTATION,
   CONDITION OR WARRANTY, EXPRESS OR IMPLIED, IN ANY OTHER PROVISION OF THIS
   AGREEMENT OR COMMUNICATION WITH NAMED USERS WITH RESPECT TO SOFTWARE, AND
   LICENSEE AND ITS SUPPLIERS SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES
   WHETHER AS TO MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER
   MATTER. NAMED USER ASSUMES ALL RESPONSIBILITIES FOR THE SELECTION OF SOFTWARE
   TO ACHIEVE NAMED USER'S INTENDED RESULTS. LICENSEE AND ITS SUPPLIERS DO NOT
   WARRANT THAT SOFTWARE WILL MEET NAMED USER'S REQUIREMENTS OR THAT SOFTWARE
   WILL BE UNINTERRUPTED OR ERROR FREE.

4.2 LIMITATION OF LIABILITY EXCEPT AS PROVIDED BELOW
LICENSEE AND ITS SUPPLIERS SHALL HAVE NO LIABILITY FOR ANY INCIDENTAL, SPECIAL,
CONSEQUENTIAL OR EXEMPLARY DAMAGES OF ANY DESCRIPTION, INCLUDING, WITHOUT
LIMITATION, DAMAGES DIRECTLY OR INDIRECTLY ARISING OUT OF THE INSTALLATION,
REMOVAL, USE OR NON-USE OF SOFTWARE OR LOSS OF PROFITS, WHETHER ARISING OUT OF
WARRANTY OR CONTRACT, NEGLIGENCE, OR OTHER NON-INTENTIONAL TORT OR OTHERWISE.
UNDER NO CIRCUMSTANCES SHALL LICENSEE'S AND ITS SUPPLIERS' LIABILITY EXCEED THE
APPLICABLE LICENSE FEE PAID BY NAMED USER UNDER THIS AGREEMENT, REGARDLESS OF
THE FORM OF THE ACTION. NAMED USER EXPRESSLY AGREES THAT THE LIMITATIONS OF
INCIDENTAL, SPECIAL, CONSEQUENTIAL AND EXEMPLARY DAMAGES SET FORTH ABOVE ARE
AGREED ALLOCATIONS OF RISK, ARE REFLECTED IN THE FEES THAT HAVE BEEN AGREED TO
BETWEEN THE PARTIES HEREIN.

5. RESTRICTIONS ON USE, CONFIDENTIALITY
To the maximum extent permitted by law, Named User agrees not to reverse
compile, disassemble, or otherwise reverse engineer Software or any portion
thereof. Named User further agrees not to disclose, reproduce, publish, release,
transfer, translate, copy or make available any portion of Software code or to
prepare or copy derivative or collective works based upon and/or containing any
portion of Software code. Named User agrees that all materials supplied under
this Agreement shall be kept in a secure place. Named User agrees to and shall
take appropriate action satisfactory to Licensee, by instruction, agreement or
otherwise, with any persons permitted access to Software to ensure continuous
confidentiality. All notices pertaining to use and ownership of the electronic
media and Software will be retained on the electronic media and Software in the
possession of Named User.

6. UNAUTHORIZED ACTS
Named User agrees to notify Licensee of the possession, use, knowledge,
disclosure or reproduction of any electronic media or Software made available to
Named User under this Agreement by any person, firm or organization not
authorized by this Agreement to have the benefit of such possession, use,
knowledge, disclosure or reproduction, and to cooperate with Licensee and its
representatives in any investigation of and litigation against such person, firm
or organization.

7. TERMINATION
Named User may terminate this Agreement without cause by giving Licensee thirty
(30) days written notice of termination. In the event of a material breach of
this Agreement which is not corrected, this Agreement may be terminated in the
following manner. The party complaining of the breach may terminate this
Agreement by serving written notice on the other party of its intention to
terminate the Agreement and stating the breach of the Agreement complained of,
whereupon the other party shall have a period of thirty (30) days to correct the
material breach; and in the event the breach is not corrected, the Agreement
shall stand terminated at the end of said thirty (30) days from service of the
notice. In the event the breach is corrected, the Agreement shall continue as if
no breach had occurred. If this Agreement is terminated at any time, Named User
shall cease use immediately of Software and shall promptly return or destroy all
Licensee originals and all materials related to Software and electronic media
received from Licensee and/or any other material furnished by Licensee to Named
User for use by Named User in connection with this Agreement, including any
modifications, and all supplementary or related program materials and
information, excluding normal printouts or handouts which have been distributed
to customers of Named User.

If for any reason the relationship between Licensee and its supplier of Software
or between Licensee and Named User is terminated, this Agreement will be
concurrently terminated, effective as of the relationship termination date.

8. GENERAL
This Agreement is entered into and shall be construed in accordance with the
laws of the State of Minnesota. This Agreement constitutes the entire agreement
between the parties and supersedes all other communications whether written or
oral. Neither the rights granted herein nor Software or copies thereof may be
licensed, assigned, or transferred by Named User. Any failure by Licensee to
terminate this Agreement for any particular cause shall not be interpreted as a
waiver of Licensee's right to subsequently cancel or terminate the Agreement for
a later similar reason. FirePond and other third-party suppliers of Licensee are
direct and intended third-party beneficiaries of this Agreement and may enforce
this Agreement directly against Named User.

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have duly
executed this Agreement.

Approved as to form:

BCBSM, INC., DBA BLUE CROSS AND BLUE SHIELD OF MINNESOTA

By:    /s/ John N. Ounjian              /s/ Timothy M. Peterson
   ------------------------------------------------------------

Name:  John N. Ounjian                  Timothy M. Peterson
     ----------------------------------------------------------

Title: CIO                              CFO
      ---------------------------------------------------------

Date:  12/18/98
     ----------------------------------------------------------

FIREPOND, INC.

By:    /s/ Klaus P. Besier
   ------------------------------------------------------------

Name:  Klaus P. Besier
     ----------------------------------------------------------

Title: CEO
      ---------------------------------------------------------

Date:  12/18/98
     ----------------------------------------------------------

<PAGE>   7
Exhibit B-1
Signature Plus Services Attachment

This services attachment is considered an Attachment and is governed by the
provisions of the Services Agreement (hereinafter Agreement) executed by CWC
and BCBSM, Inc. doing business as Blue Cross and Blue Shield of Minnesota (for
the purpose of this Attachment - Client).

_______________________________________________________All amounts in U.S.($)

SERVICES
Upon execution of this Attachment, working with Client, CWC will demonstrate
Signature Plus capabilities during a Proof of Concept project further
identified in the Signature Plus License Fee Attachment.

COMPENSATION TO CWC
CWC and Client agree that the consultants fees for the Proof of Concept shall be
a fixed fee of $225.00. CWC agrees that it will not bill Client for any
consultant fees in excess of this amount without prior written consent of
Client. During the term of this Attachment, as part of the fixed fee, CWC shall
provide, without additional charge, up to 40 hours per week of one person's
time for the Proof of Concept project identified herein.

TAXES AND DUTIES
All duties, taxes, and levies (excluding taxes based on CWC's net income) if
any, shall be borne by Client.

The fees and terms of this Attachment are valid until September 23, 1998. If
this Attachment is not signed by Client prior to that date, CWC may revise such
fees and terms.

Exhibit B-2
Small Tract Group

 . Producing preliminary quotes (i.e. street rate quotes for each of the small
  group products.

 . Generating an offer (from RAPS) for each of the small group products.

 . Providing tracking and status.

 . Storing and printing sales collateral material and forms.

 . Small group consultation.

SIGNATURES

IN WITNESS WHEREOF, the parties have signed this Attachment by their duly
authorized representatives.

BCBSM, Inc, dba Blue Cross and Blue         CWC Incorporation
Shield of Minnesota

By: /s/ John Ounjian /s/ T.M. Peterson      By: /s/ Klaus P. Besier

Name: John Ounjian, Timothy M. Peterson     Name: Klaus P. Besier

Title: Senior Vice President, CFO           Title: CEO

Date:  9/24/98, 9/24/98                     Date:  9/24/98
<PAGE>   8

[FIREPOND LOGO]

SIGNATURE PLUS LICENSE FEE ATTACHMENT

This License Fee Attachment is considered an Attachment and is governed by the
provisions of the Signature Plus Software License Agreement dated 12/8/98
(hereinafter Agreement) executed by FirePond, Inc. and BCBSM, Inc. dba Blue
Cross and Blue Shield of Minnesota (for the purpose of this Attachment -
Client).

                                                         All amounts in U.S. ($)
================================================================================

================================================================================
LICENSE FEES (SIGNATURE PLUS - ENTERPRISE)
================================================================================
For a fee of $[ *  *  * ], Client shall receive an Enterprise License, payable
as follows:
$[ *  *  * ] payable upon execution of this Attachment.
$[ *  *  * ] payable March 15, 1999.
$[ *  *  * ] payable June 1, 1999.
----------
$[ *  *  * ] total

Client will be invoiced for the above stated license fee upon execution of this
Attachment with the payment schedule above. The above fees are not subject to
offset for any reason, including any Finder's Fee Client may earn.
================================================================================

================================================================================
LICENSE FEES (SIGNATURE PLUS - TOOLKIT) - DESIGNATED SITE
--------------------------------------------------------------------------------
Signature Plus Toolkit - Eagan Campuses of BCBSM, Inc. (Included in
above license fees) ........................................................ NA
================================================================================

================================================================================
FINDER'S FEE
--------------------------------------------------------------------------------

If Client purchases, and FirePond receives payments as described above for an
Enterprise License, and if Client provides substantive Assistance in procuring
binding Signature Plus License Agreements with other Blue Cross Blue Shield
entities (other than those entities listed in Attachment Licensee), Client may
earn a finder's fee (as provided below). For purposes of this Agreement,
"Assistance" shall mean the substantive and documented introduction and
recommendation of FirePond and FirePond products by Client to other Blue Cross
Blue Shield entities, including serving as a reference account and providing
mutually agreed access to Client's installation for purposes of demonstrations
of FirePond's products. In the event Client provides such Assistance and
FirePond executes such agreements, FirePond shall pay Client a finder's fee as
follows:

o     For each Blue Cross Blue Shield entity entering binding qualifying license
      agreements within two (2) years after execution of this Agreement,
      FirePond shall pay Client a finder's fee equal to 15% of such Blue Cross
      Blue Shield entities' license fees during that period (excluding any
      implementation, maintenance or Service Fees).

o     For each Blue Cross Blue Shield entity entering binding qualifying license
      agreements after the first two (2) years following execution of this
      Agreement but before the beginning of the fourth year after execution of
      this Agreement, FirePond shall pay Client a finder's fee equal to 10% of
      such Blue Cross Blue Shield entities license fee during that period
      (excluding any implementation, maintenance or Service Fees).

o     For each Blue Cross Blue Shield entity entering binding qualifying license
      agreements after the first four (4) years after execution of this
      Agreement but before the beginning of the sixth year after execution of
      this Agreement, FirePond shall pay Client a finder's fee equal to 5% of
      such Blue Cross Blue Shield entities license fee during that period.
      (excluding any implementation, maintenance or Service Fees).

o     The finder's fee shall expire five (5) years from the date of Execution of
      this Agreement.
================================================================================

[ *  *  * ]  Confidential treatment has been requested for the bracketed
             portions. The confidential redacted portion has been filed
             separately with the Securities and Exchange Commission.
<PAGE>   9

[FIREPOND LOGO]

================================================================================
LIMITED SEMI EXCLUSIVE USE
--------------------------------------------------------------------------------
If Client purchases, and FirePond receives payments as described above for an
Enterprise License, and if Client provides substantive Assistance in procuring
binding Signature Plus License Agreements with other Blue Cross Blue Shield
entities (other than those entities listed in Attachment Licensee), FirePond
agrees that it shall not license, for use in Minnesota, to Health Partners,
Alliana, Health Systems of Minnesota, Preferred One or Medica doing business in
Minnesota for the period of December 18, 1998, to December 31, 2000. This
Limited Semi Exclusive Use License does not prohibit FirePond from using the
Software internally during such period, or from licensing the Software to third
parties other than Health Partners, Alliana, Health Systems of Minnesota,
Preferred One or Medica doing business inside and/or outside of Minnesota.
================================================================================

================================================================================
TAXES AND DUTIES
--------------------------------------------------------------------------------
All duties, taxes and levies (excluding taxes based on FirePond's net income),
if any, shall be borne by Client.
================================================================================
The fees and terms in this Attachment are valid until December 18, 1998. If
Client does not sign this Attachment prior to that date, FirePond may revise
such fees and terms.

================================================================================
SIGNATURES
--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the parties have signed this Attachment by their duly
authorized representatives.

BCBSM, INC. DBA BLUE CROSS AND BLUE                  FIREPOND, INC.
SHIELD OF MINNESOTA

By: /s/ John N. Ounjian   /s/ Timothy M. Peterson    By: /s/ Klaus P. Besier
   ----------------------------------------------       ------------------------

Name:   John N. Ounjian       Timothy M. Peterson    Name:   Klaus P. Besier
-------------------------------------------------         ----------------------

Title:  CIO                   CFO                    Title:  CEO
-------------------------------------------------          ---------------------

Date:   12/18/98                                     Date:   12/18/98
     --------------------------------------------         ----------------------

<PAGE>   10
[FIREPOND LOGO]

SIGNATURE PLUS MAINTENANCE ATTACHMENT

This maintenance attachment is considered an Attachment and is governed by the
provisions of the Software License Agreement (hereinafter Agreement) executed by
FirePond, Inc. and Licensee ("Licensee").
================================================================================
MAINTENANCE FEE                                           All amounts in U.S.($)
--------------------------------------------------------------------------------
PLATINUM MAINTENANCE (REQUIRED, 15% OF THE TOTAL LICENSE FEE FOR THE
SOFTWARE AND TOOLS) ................................................$[ *  *  * ]

Client may purchase maintenance in a prepaid one-year block at a rate of 15% of
the license fee. Client shall elect this option at the time of execution of the
applicable License option.

See chart below for definition of Silver, Gold and Platinum maintenance.

If Licensee decides to buy additional seats, FirePond will calculate the license
fee based on the percentages above and pro-rate to the end of the then-current
Licensee maintenance year.

Maintenance shall start at the end of the warranty period as identified in the
Signature Plus Software License Agreement.

================================================================================

================================================================================
RESPONSE LEVELS
--------------------------------------------------------------------------------
FirePond shall provide support via a FirePond technical support representative
to research questions and resolve issues for the four Licensee designated
contacts identified in the attached schedule from 8:00 a.m. to 5:00 p.m. Central
Time Monday through Friday (excluding FirePond holidays). This service will also
provide a means for the Licensee designated contacts to provide feedback to
FirePond on the Software and Tools.

Following is a definition of severity levels:

o     Critical: Software or Tools are non-operational.
o     High: A major function of the Software or Tools is unavailable.
o     Medium: The Software or Tools are in substantial non-conformance to the
      functional specifications in the Documentation.
o     Low: The Software or Tools substantially conform to the functional
      specifications in the Documentation but contain minor discrepancies.

Licensee identified problems shall be handled according to the following table.
================================================================================

-------------------------------------------------------------------------------
Severity          Silver                   Gold                  Platinum
--------  ----------------------  ----------------------  ----------------------
Critical  FirePond will use best  FirePond will use best  FirePond will use best
          efforts to respond to   efforts to respond to   efforts to respond to
          the Licensee contact    the Licensee contact    the Licensee contact
          within one business     within one business     within one business
          hour of notice and      hour of notice and      hour of notice and
          provide a fix plan      provide a fix plan      provide a fix plan
          within three business   within two business     within one business
          days.                   days                    day.
--------  ----------------------  ----------------------  ----------------------
High      FirePond will use best  FirePond will use best  FirePond will use best
          efforts to respond to   efforts to respond to   efforts to respond to
          the Licensee contact    the Licensee contact    the Licensee contact
          within four business    within four business    within four business
          hours of notice and     hours of notice and     hours of notice and
          provide a fix plan      provide a fix plan      provide a fix plan
          within four business    within three business   within two business
          days.                   days.                   days.
--------  ----------------------  ----------------------  ----------------------
Medium    FirePond will use best  FirePond will use best  FirePond will use best
          efforts to respond to   efforts to respond to   efforts to respond to
          the Licensee contact    the Licensee contact    the Licensee contact
          within one business     within one business     within one business
          day of notice and       day of notice and       day of notice and
          provide a fix plan      provide a fix plan      provide a fix plan
          within five business    within four business    within three business
          days.                   days.                   days.
--------  ----------------------  ----------------------  ----------------------
Low       FirePond will use best  FirePond will use best  FirePond will use best
          efforts to respond to   efforts to respond to   efforts to respond to
          the Licensee contact    the Licensee contact    the Licensee contact
          within two to five      within two to five      within two to five
          business days of        business days of        business days of
          notice and consider     notice and consider     notice and give
          for inclusion in the    for inclusion in the    priority consideration
          maintenance release.    maintenance release.    for inclusion in the
                                                          maintenance release.
-------------------------------------------------------------------------------

[ *  *  * ]  Confidential treatment has been requested for the bracketed
             portions. The confidential redacted portion has been filed
             separately with the Securities and Exchange Commission.
<PAGE>   11

[FIREPOND LOGO]

Maintenance includes issuance of upgrades as they become available from
FirePond. Upon issuance of an upgrade, FirePond shall provide the support
identified in this Attachment for the previous upgrade for a period of 12
months.

Maintenance service does not include the delivery of any software and associated
documentation which FirePond offers as separate products which have not been
licensed by Licensee.

Errors attributed to FirePond shall be those that are reproducible by FirePond
on unmodified FirePond software. FirePond will use reasonable efforts to work
with client to obtain corrections or workarounds to problems in third party
implementations/software.

FirePond shall use reasonable commercial efforts to correct the defect by
bringing the performance of the Software into material compliance with the
functional specifications or to replace the defective component within thirty
(30) days or such longer period as is reasonable in the circumstances where
FirePond proceeds with all due diligence to cure such defect. In the event
FirePond is unable to correct or replace such defect within the stated time
period, Licensee shall refund the then present value of such Software to
Licensee, as amortized over a five (5) year useful life measured from the date
of delivery.

All fix plan times begin when FirePond duplicates the problem.

FirePond shall have no obligation to support:

a.    altered, damaged or modified (except for standard modifications utilizing
      the standard software tools) software or any portion of the software
      incorporated with or into other software;

b.    Software problems caused by Licensee's negligence, abuse or
      misapplication, use of software other than as specified in FirePond's
      published and current documentation, or other causes beyond the control of
      FirePond;

c.    Software installed on or with any Computer Hardware, Operating System,
      GUI, or Database Management System that is not specified in the
      documentation covering the software.

TAXES AND DUTIES
--------------------------------------------------------------------------------
All duties, taxes and levies (excluding taxes based on FirePond's net income),
if any, shall be borne by Licensee.
================================================================================

================================================================================
MAINENTANCE FEE RENEWAL
--------------------------------------------------------------------------------
The renewal fee for the maintenance shall be based on the total license fee for
the Software and Tools as identified in the Signature Plus License Fee
Attachment governed by and attached to the Software License Agreement executed
by FirePond and Licensee.

If payment is not made within thirty (30) days of the due date, support services
will be suspended until payment is received. If payment is not received by
FirePond, within 180 days of the due date, the support services will be
terminated. Licensee will be required to pay a reinstatement fee to reactivate
support. The cost to reactivate will be all maintenance fees in arrears.
--------------------------------------------------------------------------------

<PAGE>   12

[FIREPOND LOGO]

================================================================================
FEES AND PAYMENT TERMS
--------------------------------------------------------------------------------
The maintenance identified above is payable as follows:
$[ *  *  * ] payable upon expiration of the warranty period for the Software.
$[ *  *  * ] payable March 15, 1999.
$[ *  *  * ] payable June 1, 1999.
------------
$[ *  *  * ] total

For the initial first year, Licensee will be invoiced for the above stated
maintenance fee upon execution of this Attachment with the payment schedule
above, and annually in advance thereafter. Maintenance fees are subject to
change once during a calendar year upon sixty (60) days notice. This Attachment
shall automatically renew for subsequent one-year terms unless the Agreement is
terminated by sixty (60) days advance written notice prior to the end of the
current maintenance year. If after any period of non-maintenance under a
Signature Plus Maintenance Attachment, Licensee desires to re-establish
maintenance of the Software by FirePond, Licensee shall pay all maintenance at
current list prices calculated from the day maintenance was discontinued. To
stay in compliance with the Agreement, all past due amounts must be paid timely
in accordance with the terms of the Agreement.

Notwithstanding the foregoing, increases in annual maintenance over the initial
base year maintenance shall be limited to ten (10) percentage.

================================================================================

The fees and terms in this Attachment are valid until December 18, 1998. If this
Attachment is not signed by Licensee prior to that date, FirePond may revise
such fees and terms.

================================================================================
SIGNATURES
--------------------------------------------------------------------------------

BCBSM, INC. DBA BLUE CROSS AND BLUE                  FIREPOND, INC.
SHIELD OF MINNESOTA

By: /s/ John N. Ounjian   /s/ Timothy M. Peterson    By: /s/ Klaus P. Besier
   ----------------------------------------------       ------------------------

Name:   John N. Ounjian       Timothy M. Peterson    Name:   Klaus P. Besier
-------------------------------------------------         ----------------------

Title:  CIO                   CFO                    Title:  CEO
-------------------------------------------------          ---------------------

Date:   12/18/98                                     Date:   12/18/98
     --------------------------------------------         ----------------------

[ *  *  * ]  Confidential treatment has been requested for the bracketed
             portions. The confidential redacted portion has been filed
             separately with the Securities and Exchange Commission.
<PAGE>   13

                             "Licensee Attachment"

Affiliated Community Health Network, Inc.
Aspen Plus Health Network
Atrium Health Plan, Inc.
Aware Dental Services, LLC
Aware Integrated, Inc.
BCBSM, Inc.
BCBSM Foundation, Inc.
BCBSM Population Health, Inc.
Behavioral Health Services, Inc.
Capital Asset Care, Inc.
Care Delivery Management, Inc.
Comprehensive Managed Care, Inc.
Dakota Community Health Network, Inc.
Delta Dental Plan of Minnesota
Employer Provider Network, Inc.
First Integrated Exclusive Provider Organization
First Integrated Holding Company
First Plan of Minnesota
HMO Minnesota dba Blue Plus
MII, Inc.
MII Casualty, Incorporated
MII Life, Incorporated
MII Services, Inc.
Pharmacy Gold, Inc.
Prairie Community Health Network, Inc.
Prime Therapeutics, Inc.
River Bend Community Health Network, Inc.

IN WITNESS WHEREOF, the parties have so agreed:

BCBSM, Inc. dba Blue Cross and Blue Shield of Minnesota

By: /s/ John N. Ounjian, /s/ T.M. Peterson
Name: John N. Ounjian, Timothy M. Peterson
Title: CIO, CFO
Date: _____________________________________

CWC Incorporated

By: /s/ Klaus P. Besier
Name: Klaus P. Besier
Title: CEO
Date: 12/18/98

<PAGE>   14

[FIREPOND LOGO]

LICENSEE DESIGNATED CONTACTS

================================================================================
CONTACT #1
--------------------------------------------------------------------------------

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

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

Business Address:
                 ---------------------------------------------------------------

Business Phone:
               -----------------------------------------------------------------

Business Fax:
             -------------------------------------------------------------------

E-mail:
       -------------------------------------------------------------------------
================================================================================
CONTACT #2
--------------------------------------------------------------------------------

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

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

Business Address:
                 ---------------------------------------------------------------

Business Phone:
               -----------------------------------------------------------------

Business Fax:
             -------------------------------------------------------------------

E-mail:
       -------------------------------------------------------------------------
================================================================================
CONTACT #3
--------------------------------------------------------------------------------

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

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

Business Address:
                 ---------------------------------------------------------------

Business Phone:
               -----------------------------------------------------------------

Business Fax:
             -------------------------------------------------------------------

E-mail:
       -------------------------------------------------------------------------
================================================================================
CONTACT #4
--------------------------------------------------------------------------------

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

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

Business Address:
                 ---------------------------------------------------------------

Business Phone:
               -----------------------------------------------------------------

Business Fax:
             -------------------------------------------------------------------

E-mail:
       -------------------------------------------------------------------------

================================================================================<PAGE>   1

                                   CYRK, INC.

                        1993 EMPLOYEE STOCK PURCHASE PLAN

          Effective as of May 10, 1993, as amended as of May 8, 1997,
                  as further amended as of November 10, 1999.

l.   PURPOSE. The purpose of this Employee Stock Purchase Plan (the "PLAN") is
     to provide employees of Cyrk, Inc., a Delaware corporation (formerly, Cyrk
     International, Inc., and, hereinafter, the "COMPANY"), and its
     subsidiaries, who wish to become stockholders of the Company an opportunity
     to purchase Common Stock of the Company (the "SHARES"). The Plan is
     intended to qualify as an "employee stock purchase plan" within the meaning
     of Section 423 of the Internal Revenue Code of 1986, as amended (the
     "CODE").

2.   ELIGIBLE EMPLOYEES. Subject to provisions of Sections 7, 8 and 9 below, any
     individual who is in the full-time employment (as defined below) of the
     Company, or any of its subsidiaries (as defined in Section 424(f) of the
     Code) the employees of which are designated by the Board of Directors as
     eligible to participate in the Plan, is eligible to participate in any
     Offering of Shares (as defined in Section 3 below) made by the Company
     hereunder. Full-time employment shall include all employees whose customary
     employment is:

     (a)  in excess of 20 hours per week; and

     (b)  more than five months in the relevant calendar year.

3.   OFFERING DATES. From time to time the Company, by action of the Board of
     Directors, will grant rights to purchase Shares to employees eligible to
     participate in the Plan pursuant to one or more offerings (each of which is
     an "OFFERING") on a date or series of dates (each of which is an "OFFERING
     DATE") designated for this purpose by the Board of Directors.

4.   PRICES. The Price per share for each grant of rights hereunder shall be the
     lesser of:

     (a)  eighty-five percent (85%) of the fair market value of a Share on the
          Offering Date on which such right was granted; or

     (b)  eighty-five percent (85%) of the fair market value of a Share on the
          date such right is exercised. At its discretion, the Board of
          Directors may determine a higher price for a grant of rights.

<PAGE>   2

          For purposes of this Plan, the term "fair market value" on any date
          means (i) the average (on that date) of the high and low prices of the
          Company's Common Stock on the principal national securities exchange
          on which the Common Stock is traded, if the Common Stock is then
          traded on a national securities exchange; or (ii) the last reported
          sale price (on that date) of the Common Stock on the NASDAQ National
          Market List, if the Common Stock is not then traded on a national
          securities exchange; or (iii) the average of the closing bid and asked
          prices last quoted (on that date) by an established quotation service
          for over-the-counter securities, if the Common Sock is not reported on
          the NASDAQ National Market List. If the Company's Common Stock is not
          publicly traded at the time right is granted under this Plan, "fair
          market value" shall mean the fair market value of the Common Stock as
          determined by the Administrator after taking into consideration all
          factors which it deems appropriate, including, without limitation,
          recent sale and offer prices of the Common Stock in private
          transactions negotiated at arm's length.

5.   EXERCISE OF RIGHTS AND METHOD OF PAYMENT.

     (a)  Rights granted under the Plan will be exercisable periodically on
          specified dates as determined by the Board of Directors.

     (b)  The method of payment for Shares purchased upon exercise or rights
          granted hereunder shall be through regular payroll deductions or by
          lump sum cash payment, or both, as determined by the Board of
          Directors. No interest shall be paid upon payroll deductions unless
          specifically provided for by the Board of Directors.

     (c)  Any payments received by the Company from a participating employee and
          not utilized for the purchase of Shares upon exercise of a right
          granted hereunder shall be promptly returned to such employee by the
          Company after termination of the right to which the payment relates.

6.   TERM OF RIGHTS. Rights granted on any Offering Date shall be exercisable
     upon the expiration of such period ("OFFERING PERIOD") as shall be
     determined by the Board of Directors when it authorizes the Offering,
     provided that such Offering Period shall in no event be longer than
     twenty-seven (27) months.

7.   SHARES SUBJECT TO THE PLAN. No more than 600,000 Shares may be sold
     pursuant to rights granted under the Plan; PROVIDED, HOWEVER, that
     appropriate adjustment shall be made in such number, in the number of
     Shares covered by outstanding rights granted hereunder, in the exercise
     price of the rights and in the maximum number of Shares which an employee
     may purchase (pursuant to Section 9 below) to give effect to any mergers,
     consolidations, reorganizations, recapitalizations, stock splits, stock
     dividends or other relevant changes in the capitalization of the Company
     occurring after the effective date of the Plan, provided that no fractional
     Shares shall be subject to a right and each right shall be adjusted
     downward to the nearest full Share. Any agreement of merger or
     consolidation will include provisions for

                                        2

<PAGE>   3

     protection of the then existing rights of participating employees under the
     Plan. Either authorized and unissued Shares or issued Shares heretofore or
     hereafter reacquired by the Company may be made subject to rights under the
     Plan. If for any reason any right under the Plan terminates in whole or in
     part, Shares subject to such terminated right may again be subjected to a
     right under the Plan.

8.   LIMITATIONS ON GRANTS.

     (a)  No employee shall be granted a right hereunder if such employee,
          immediately after the right is granted, would own stock or rights to
          purchase stock possessing five percent (5%) or more of the total
          combined voting power or value of all classes of stock of the Company,
          or of any subsidiary, computed in accordance with Sections 423(b)(3)
          and 424(d) of the Code.

     (b)  No employee shall be granted a right which permits his right to
          purchase shares under all employee stock purchase plans of the Company
          and its subsidiaries to accrue at a rate which exceeds twenty-five
          thousand dollars ($25,000) (or such other maximum as may be prescribed
          from time to time by the Code) of the fair market value of such Shares
          (determined at the time such right is granted) for each calendar year
          in which such right is outstanding at any time in accordance with the
          provisions of Section 423(b)(8) of the Code.

     (c)  No right granted to any participating employee under a single Offering
          shall cover more shares than may be purchased at an exercise price
          equal to 10% of the compensation payable to the employee during the
          Offering not taking into consideration any changes in the employee's
          rate of compensation after the date the employee elects to participate
          in the Offering, or such other percentage as determined by the Board
          of Directors from time to time.

9.   LIMIT ON PARTICIPATION. Participation in an Offering shall be limited to
     eligible employees who elect to participate in such Offering in the manner,
     and within the time limitation, established by the Board of Directors when
     it authorizes the offering.

10.  CANCELLATION OF ELECTION TO PARTICIPATE. An employee who has elected to
     participate in an Offering may, unless the employee has waived this
     cancellation right at the time of such election in a manner established by
     the Board of Directors, cancel such election as to all (but not part) of
     the rights granted under such Offering by giving written notice of such
     cancellation to the Company before the expiration of the Offering Period.
     Any amounts paid by the employee for the Shares or withheld for the
     purchase of Shares from the employee's compensation through payroll
     deductions shall be paid to the employee, without interest, upon such
     cancellation.

                                        3

<PAGE>   4

11.  TERMINATION OF EMPLOYMENT. Upon termination of employment for any reason,
     including the death of the employee, before the date on which any rights
     granted under the Plan are exercisable, all such rights shall immediately
     terminate and amounts paid by the employee for the Shares or withheld for
     the purchase of Shares from the employee's compensation through payroll
     deductions shall be paid to the employee or to the employee's estate,
     without interest.

12.  EMPLOYEE'S RIGHTS AS STOCKHOLDER. No participating employee shall have any
     rights as a stockholder in the Shares covered by a right granted hereunder
     until such rights has been exercised, full payment has been made for the
     corresponding Shares and the Share certificate is actually issued.

13.  RIGHTS NOT TRANSFERABLE. Rights under the Plan are not assignable or
     transferable by a participating employee and are exercisable only by the
     employee.

14.  LIMITS ON SALE OF STOCK PURCHASED UNDER THE PLAN. The Plan is intended to
     provide shares of Common Stock for investment and not for resale. The
     Company does not, however, intend to restrict or influence any employee in
     the conduct of his/her own affairs. An employee may, therefore, sell stock
     purchased under the Plan at any time the employee chooses, subject to
     compliance with any applicable Federal or state securities laws; provided,
     however, that because of certain Federal tax requirements, each employee
     agrees by entering the Plan, promptly to give the Company notice of any
     such stock disposed of within two years after the date of grant of the
     applicable right showing the number of such shares disposed of. THE
     EMPLOYEE ASSUMES THE RISK OF ANY MARKET FLUCTUATIONS IN THE PRICE OF THE
     STOCK.

15.  AMENDMENTS TO OR DISCONTINUANCE OF THE PLAN. The Board of Directors may at
     any time terminate or amend this Plan without notice and without further
     action on the part of stockholders of the Company, provided:

     (a)  that no such termination or amendment shall adversely affect the then
          existing rights of any participating employee;

     (b)  that any such amendment which:

          (i)   increases the number of Shares subject to the Plan (subject to
                the provisions of Section 7);

          (ii)  changes the class of persons eligible to participate under the
                Plan; or

          (iii) materially increases the benefits accruing to participants under
                the Plan shall be subject to approval of the stockholders of the
                Company.

                                        4

<PAGE>   5

16.  EFFECTIVE DATE AND APPROVALS. The Plan is being adopted by the Board of
     Directors on May 10, 1993 to become effective as of said date. The
     Company's obligation to offer, sell and deliver its Shares under the Plan
     is subject to the approval of its stockholders not later than May 10, 1994
     and of any governmental authority required in connection with the
     authorized issuance or sale of such Shares and is further subject to the
     Company receiving the opinion of its counsel that all applicable securities
     laws have been complied with.

17.  TERM OF PLAN. No rights shall be granted under the Plan after May 10, 2003.

18.  ADMINISTRATION OF THE PLAN. The Board of Directors or any committee or
     persons to whom it delegates its authority (the "ADMINISTRATOR") shall
     administer, interpret and apply all provisions of the Plan. The
     Administrator may waive such provisions of the Plan as it deems necessary
     to meet special circumstances not anticipated or covered expressly by the
     Plan. Nothing contained in this Section shall be deemed to authorize the
     Administrator to alter or administer the provisions of the Plan in a manner
     inconsistent with the provisions of Section 423 of the Code. No member of
     the Administrator shall be liable for any action or determination made in
     good faith with respect to the Plan or any right granted under it.

     Date approved by the Board
     of Directors of the Company:    May 10, 1993

     Date approved by the
     Stockholders of the Company:    May 10, 1993, as amended as of May 8, 1997,
                                     as further amended as of November 10, 1999

                                        5

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