Document:

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                                                                 EXHIBIT 10.22

                                                             EXECUTION VERSION

                     INTERACTIVE MARKETING AND SOFTWARE
                           DISTRIBUTION AGREEMENT

                  This interactive marketing and software distribution agreement
(this "Agreement") is made and entered into as of January 28, 2000 (the
"Effective Date") between America Online, Inc. ("AOL") and Netcentives Inc.
("Netcentives"). Each of Netcentives and AOL may be individually referred to
herein as a "Party," and Netcentives and AOL may be collectively referred to
herein as the "Parties." Each of Exhibits A, B and C hereto (collectively, the
"Exhibits") is hereby made part of this Agreement, and any reference to this
Agreement shall be deemed to include the Exhibits hereto.

                  1. Good Faith Negotiation. Promptly following the Effective
Date, the Parties shall in good faith negotiate the terms and conditions of the
Supplemental Agreements (as defined in Exhibit A), based upon the parameters set
forth in Exhibit A hereto, and shall attempt to execute the Supplemental
Agreements within the time frame set forth in the Exhibit A. The Parties shall
use commercially reasonable efforts to negotiate and execute the Supplemental
Agreements within twenty (20) business days following the Effective Date.

                  2.  Binding Nature. This Agreement, together with Exhibits
hereto (and the terms and conditions thereof), is intended to create a binding
agreement between the Parties and shall be binding on and enforceable against
the Parties in all respects.

                  3. Covenants. Netcentives shall permit AOL and its consultants
and professional advisors to conduct, and shall assist AOL and its consultants
and professional advisors in obtaining an understanding of Netcentives'
technology. Any meetings related thereto shall be conducted during normal
business hours, upon reasonable terms and conditions mutually agreed upon by AOL
and Netcentives and upon prior reasonable notice to Netcentives.

                  4. Grant to AOL Affiliates. Any of the rights granted to and
obligations of AOL under this Agreement may also be exercised or performed by
any AOL affiliate or subsidiary; provided that such AOL affiliate or subsidiary
agrees to be bound by all of the applicable provisions hereof governing such
exercise or performance.

                  5. No Joint Venture. Neither Party shall make any warranties
or representations, or assume or create any obligations, on the other Party's
behalf except as may be expressly permitted hereunder or in writing by such
other Party. Each Party shall be solely responsible for the actions of all its
respective employees, agents and representatives.

***CERTAIN INFORMATION IN THIS DOCUMENT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.
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                  6. Confidentiality. Without the express written consent of the
other Party hereto, neither Party nor any of its employees, officers, directors,
or agents shall disclose the existence of this Agreement, any of the terms
hereof, nor any other Confidential Information to any third party except: (i) as
required by law; or (ii) to such party's attorneys, accountants, other advisors,
officers, directors and equity holders, as applicable, in order to facilitate
the fulfillment of such Party's obligations hereunder; provided, however, that
any such third party agrees to be bound by the confidentiality provisions
hereof. Any publicity relating to this Agreement (including, without limitation,
the timing of any release of any such publicity) must be approved in advance by
both Parties (any such approval not to be unreasonably withheld or delayed). For
purposes of this Agreement, "Confidential Information" means any information
which is disclosed during the Disclosure Period (as defined below) and which is
or should be reasonably understood to be confidential or proprietary to the
disclosing Party (the "Discloser") (which such information may include without
limitation information concerning Discloser's business, products, services,
content, finances, subscribers, users, tools, source code, product designs and
plans, customer lists and other marketing and technical information and other
unpublished information). The Parties agree that confidential or proprietary
information conveyed in written or other tangible form shall be deemed
"Confidential Information" under this Agreement and/or any Supplemental
Agreement if it is so designated by Discloser by prominently marking it with a
"confidential," "proprietary" or similar legend. Information disclosed in other
than a tangible form shall be treated as Confidential Information if before its
disclosure Discloser advises Recipient that it will be disclosing Confidential
Information and within thirty (30) days after disclosure, Discloser summarizes
the Confidential Information in writing and, marks it "Confidential" and
delivers it to Recipient. Recipient shall make use of the Confidential
Information only for the purpose of discussing and evaluating the proposed
business relationship between the Parties set forth herein. Recipient's duty to
hold Confidential Information in confidence shall expire two (2) years after the
later of (i) the end of the Term (as defined in Section 17 of Exhibit A) and
(ii) any Supplemental Year as defined in the "Definitions" Section of Exhibit A
hereto. "Confidential Information" shall not include information (a) already
lawfully known to or independently developed by the receiving Party (without the
use of the Confidential Information of Discloser), (b) disclosed in published
materials, (c) generally known to the public, or (d) lawfully obtained from any
third party.

                  7. Representations and Warranties. Each Party represents and
warrants to the other Party that: (i) such Party has the full corporate right,
power and authority to enter into this Agreement and to perform the acts
required of it hereunder; (ii) the execution of this Agreement by such Party,
and the performance by such Party of its obligations and duties hereunder, do
not and will not violate any agreement to which such Party is a party or by
which it is otherwise bound; (iii) when executed and delivered by such Party,
this Agreement will constitute the legal, valid and binding obligation of such
Party, enforceable against such Party in accordance with its terms; and (iv)
such Party acknowledges that the other Party makes no representations,
warranties or agreements related to the subject matter hereof that are not
expressly provided for in this Agreement. In addition, Netcentives hereby
represents that it has full corporate right, power and authority (including,
without limitation, the approval of its Board of Directors) to issue the Common
Stock (as defined in Section 1 of Exhibit A) to AOL.

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                  8. Survival. Sections 6, 8, 9, 10 and 16 hereof, Sections
11(c), 11(d), 11(e), 11(g), 11(h), 19, 21, 22, 23, 27, 31, 32 and 34, and Part
10 of Exhibit A, and Sections 2, 3, 4, 8, 12, 13 and 18 of Exhibit C shall
survive termination of this Agreement in accordance with their respective terms.

                  9. Governing Law and Venue. This Agreement and the Exhibits
hereto shall be governed by, and construed in accordance with, the laws of the
State of New York. The Federal or state courts of the State of New York situated
in New York City shall be the venue for actions brought under this Agreement or
the Exhibits hereto, and each party hereby irrevocably consents to the exclusive
jurisdiction of such courts in such actions.

                  10. Fees and Expenses. Each Party shall be responsible for the
payment of its own costs and expenses, including attorneys' fees and expenses,
in connection with the negotiation and execution of this Agreement and the
Supplemental Agreements and the consummation of the transactions contemplated
hereby and thereby.

                  11. Entire Agreement. This Agreement and the Exhibits hereto
represent the entire agreement of the Parties with respect to the subject matter
hereof and supersede all prior and/or contemporaneous agreements and
understandings, written or oral between the parties with respect to the subject
matter hereof. This Agreement and/or any Exhibits hereto may be modified or
amended only by written agreement of AOL and Netcentives.

                  12. Waiver. Any of the provisions of this Agreement and the
Exhibits hereto may be waived by the party entitled to the benefit thereof.
Neither Party shall be deemed, by any act or omission, to have waived any of its
rights or remedies hereunder unless such waiver is in writing and signed by the
waiving party, and then only to the extent specifically set forth in such
writing. A waiver with reference to one event shall not be construed as
continuing or as a bar to or waiver of any right or remedy as to a subsequent
event.

                  13. No Third Party Beneficiaries. Nothing express or implied
in this Agreement or the Exhibits hereto is intended to confer, nor shall
anything herein confer, upon any person other than the parties and the
respective successors or assigns of the parties, any rights, remedies,
obligations or liabilities whatsoever.

                  14. Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which
together shall constitute one in the same instrument. The execution of this
Agreement may be evidenced by facsimile transmission of signatures, in which
case the Parties agree to exchange originally executed versions of this
Agreement promptly thereafter.

                  15.  Termination.

                       (a)  Termination for Bankruptcy/Insolvency.  Either
Party may terminate this Agreement immediately following written notice to the
other Party if the other Party (i) ceases to do business in the normal course,
(ii) becomes or is declared insolvent or bankrupt, (iii) is the subject of any
proceeding related to its liquidation or insolvency (whether voluntary or
involuntary) which is not dismissed within ninety (90) calendar days or (iv)
makes an assignment

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for the benefit of creditors.

                       (b) Termination for Breach.  Except as expressly
provided elsewhere in this Agreement, either Party may terminate this
Agreement at any time in the event of a material breach of the Agreement by
the other Party which remains uncured after thirty (30) days written notice
thereof to the other Party (or such shorter period as may be specified
elsewhere in this Agreement). Notwithstanding the foregoing, in the event of a
material breach of a provision that expressly requires action to be completed
within an express period shorter than thirty (30) days, either Party may
terminate this Agreement if the breach remains uncured after written notice
thereof to the other Party.

                  16.  Conflict.  In the event of any conflict between any of
the Exhibits, the terms and conditions of Exhibit A shall prevail.

                   [REMAINDER OF PAGE INTENTIONALLY BLANK]

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
Effective Date.

NETCENTIVES INC.                       AMERICA ONLINE, INC.

By: /s/ West Shell III                 By: /s/ David Colburn
   ____________________________           ____________________________
   Name: West Shell III                   Name: David Colburn
   Title: Chairman and CEO                Title: President, Business Affairs

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                                  EXHIBIT A

                     Terms of the Strategic Relationship

Definitions:       (a) AIM Client. The Win 32 version of the client software
                   (United States version 2.0) developed and distributed by
                   AOL, in executable, machine readable object code form, that
                   enables end-users to access and use the AIM Service.

                   (b) AIM Service. The standard, narrow-band AOL-branded
                   service, currently available through the Internet, that
                   enables end-users of such service to exchange, in real- time,
                   private, personalized messages with, and to monitor the
                   online status of, other end-users of such service through use
                   of the AIM Client, and any upgrades or enhancements thereto
                   during the Term, excluding: (i) such service(s) or similar
                   services available on the AOL Service; and (ii) any other
                   version of an AIM service which is materially different from
                   the standard narrow-band U.S. version of the AIM brand
                   service, by virtue of its branding, distribution,
                   functionality, Content or services, including, without
                   limitation, any co-branded version of the service or any
                   version distributed through or designed for any [ *** ]
                   platform or through any platform or device other than a
                   desktop personal computer (e.g., a service designed primarily
                   for distribution to a hand-held, wireless personal digital
                   assistant [ *** ].

                   (c) AOL Properties. The AOL Service, AOL.com, the CompuServe
                   Service, Netcenter, AIM Service, the ICQ Service, Digital
                   City, Spinner, Winamp, and MovieFone. Each of the foregoing
                   AOL Properties may be individually referred to herein as an
                   "AOL Property." AOL shall use good faith efforts to work with
                   Netcentives to encourage the use of Netcentives Loyalty
                   Network Infrastructure by AOL- affiliated interactive
                   properties other than the AOL Properties following the
                   Effective Date.

                   (d) AOL Rewards Program. The AOL- or AOL-

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THE OMITTED PORTIONS.

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                   affiliate-branded user loyalty program (i) developed and
                   managed by or on behalf of AOL but not co-branded with the
                   ClickRewards Program, (ii) supported or operated (in whole or
                   in part) by the Netcentives Loyalty Network Infrastructure
                   and (iii) created following the Effective Date for any and/or
                   all of the AOL Properties other than the ICQ Service.

                   (e) AOL Network. Any AOL Property and any other product or
                   service owned, operated or distributed by or through AOL or
                   any of its affiliates worldwide (and including those
                   properties excluded from the definitions of the AOL
                   Properties, pursuant to the Supplemental Agreements) (e.g.,
                   e-mail, yellow pages, etc.). It is understood and agreed that
                   the rights of Netcentives relate only to the AOL Properties
                   and not generally to the AOL Network.

                   (f) AOL Service. The standard U.S. version of the America
                   Online(R) brand service (whether delivered through a narrow-
                   band or broadband platform), specifically excluding (a)
                   AOL.com, Netcenter or any other AOL Interactive Site, (b) the
                   international versions of an America Online service (e.g.,
                   AOL Japan), (c) the CompuServe(R) brand service and any other
                   CompuServe products or services (d) "ICQ(TM)," "AOL
                   NetFind(TM)," "AOL Instant Messenger(TM)," "Digital City,"
                   "NetMail(TM)," "Electra", "Thrive", "Real Fans", "Love@AOL",
                   "Entertainment Asylum," "AOL Hometown," "My News" or any
                   similar independent product, service or property which may be
                   offered by, through or with the U.S. version of the America
                   Online(R) brand service, (e) any programming or Content area
                   offered by or through the U.S. version of the America
                   Online(R) brand service over which AOL does not exercise
                   complete operational control (including, without limitation,
                   Content areas controlled by other parties and member-created
                   Content areas), (f) any yellow pages, white pages,
                   classifieds or other search, directory or review services or
                   Content offered by or through the U.S. version of the America
                   Online(R) brand service, (g) any property, feature, product
                   or service which AOL or its affiliates may acquire subsequent
                   to the Effective Date and (h) any other version of an

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                   America Online service which is materially different from the
                   standard U.S. version of the America Online brand service, by
                   virtue of its branding, distribution, functionality, Content
                   or services, including, without limitation, any co-branded
                   version of the service or any version primarily distributed
                   through any [ *** ] platform or through any platform or
                   device other than a desktop personal computer.

                   (g) AOL.com. AOL's primary Internet-based Interactive Site
                   marketed under the "AOL.COM(TM)" brand, specifically
                   excluding (a) the AOL Service, (b) Netcenter, (c) any
                   international versions of such site, (d) "ICQ," "AOL
                   NetFind(TM)," "AOL Instant Messenger(TM)," "NetMail(TM),"
                   "AOL Hometown," "My News" or any similar independent product
                   or service offered by or through such site or any other AOL
                   Interactive Site, (e) any programming or Content area offered
                   by or through such site over which AOL does not exercise
                   complete operational control (including, without limitation,
                   Content areas controlled by other parties and member-created
                   Content areas), (f) any programming or Content area offered
                   by or through such site which was operated, maintained or
                   controlled by the former AOL Studios division (e.g.,
                   Electra), (g) any yellow pages, white pages, classifieds or
                   other search, directory or review services or Content offered
                   by or through such site or any other AOL Interactive Site,
                   (h) any property, feature, product or service which AOL or
                   its affiliates may acquire subsequent to the Effective Date
                   and (i) any other version of an America Online Interactive
                   Site which is materially different from AOL's primary
                   Internet-based Interactive Site marketed under the
                   "AOL.COM(TM)" brand, by virtue of its branding, distribution,
                   functionality, Content or services, including, without
                   limitation, any co- branded versions or any version
                   distributed through any [ *** ] platform or through any
                   platform or device other than a desktop personal computer.

                   (h) Bank Operations. Responsibility for and management of the
                   financial liability associated with the redemption of AOL
                   Rewards Program currency or any Customized AOL Rewards
                   Program currency. "Bank Operations" shall include any
                   software or technology

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                   required to operate, manage, maintain, distribute or support
                   the Bank Operations, or to provide interconnectivity between
                   the Bank Operations and the AOL Rewards Program or any
                   Customized AOL Rewards Program. For the avoidance of doubt,
                   "Bank Operations" shall not include the AOL Rewards Program
                   (or any Customized AOL Rewards Program) database and related
                   AOL software.

                   (i) Baseline Interactive Service. An entity offering either:
                   ***

                   (j) Broad Content or E-Commerce Aggregator. An interactive
                   site or service featuring a broad selection of aggregated
                   third party interactive content (or navigation thereto)
                   (e.g., an online service or search and directory service)
                   and/or marketing a broad selection of products or services
                   across numerous interactive commerce categories (e.g., an
                   online mall or other leading commerce site)

                   (k) Change of Control. (i) The consummation of a
                   reorganization, merger or consolidation or sale or other
                   disposition of substantially all of the assets of a party or
                   (ii) the acquisition by any individual, entity or group
                   (within the meaning of Section 13(d)(3) or 14(d)(2) of the
                   Securities Exchange Act of 1933, as amended) of beneficial
                   ownership (within the meaning of Rule 13d-3 promulgated under
                   such Act) of more than 50% of either (x) the then outstanding
                   shares of common stock of such party; or (y) the combined
                   voting power of the then outstanding voting securities of
                   such party entitled to vote generally in the election of
                   directors.

                   (l) ClickRewards Program. The consumer-based Rewards Program
                   operated by Netcentives and currently located at
                   www.clickrewards.com (or any successor Rewards Program
                   thereto).

                   (m) CompuServe Service. The standard, U.S. version of the
                   CompuServe brand service [ *** ], specifically excluding (a)
                   any international versions of such service, (b) any web-based
                   service including "compuserve.com", "cserve.com" and
                   "cs.com", or any similar product or service offered by or
                   through the U.S. version of the CompuServe brand service, (c)
                   Content areas owned, maintained or controlled by CompuServe
                   affiliates or any similar "sub-service," (d) any programming
                   or Content area offered by or through the U.S.

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                   version of the CompuServe brand service over which CompuServe
                   does not exercise complete or substantially complete
                   operational control (e.g., third-party Content areas), (e)
                   any yellow pages, white pages, classifieds or other search,
                   directory or review services or Content and (f) any
                   co-branded or private label branded version of the U.S.
                   version of the CompuServe brand service, (g) any version of
                   the U.S. version of the CompuServe brand service which offers
                   Content, distribution, services and/or functionality
                   materially different from the Content, distribution, services
                   and/or functionality associated with the standard,
                   narrow-band U.S. version of the CompuServe brand service,
                   including, without limitation, any version of such service
                   distributed through any platform or device other than a
                   desktop personal computer and (h) any property, feature,
                   product or service which CompuServe or its affiliates may
                   acquire subsequent to the Effective Date.

                   (n) Customized AOL Rewards Program. Any customized Rewards
                   Program, created by Netcentives in accordance with this
                   Agreement and the Supplemental Agreements for use by AOL on
                   any AOL Property, and into which AOL shall have the right,
                   but not the obligation, to opt any AOL Property from time to
                   time during the Term. Each Customized AOL Rewards Program
                   shall utilize (at the sole option of AOL) an AOL proprietary
                   currency (e.g., "Spinner Rewards Points") and shall be
                   powered by Netcentives. The terms and conditions set forth in
                   Sections 21 through 23 shall apply to any Customized AOL
                   Rewards Program.

                   (o) Customized ClickRewards Program. Any customized cul-de-
                   sac website Rewards Program co-branded with the Click Rewards
                   Program, created by Netcentives in accordance with the
                   Supplemental Agreements for use by AOL on any AOL Property
                   (e.g., the ICQ Click Rewards Program), and into which AOL
                   shall have the right, but not the obligation, to opt any AOL
                   Property from time to time during the Term. Each Customized
                   Click Rewards Program shall be co-branded

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                   with the Click Rewards currency and shall be powered by
                   Netcentives. The terms and conditions of maintaining an
                   Affiliated Program Site as set forth in Sections 24 through
                   28 shall apply to any Customized ClickRewards Program.

                   (p) Digital City. The standard U.S. version of Digital City's
                   local content offerings marketed under the Digital City(R)
                   brand name [ *** ], specifically excluding (a) the AOL
                   Service, AOL.com, Netcenter, or any other AOL Interactive
                   Site, (b) any international versions of such local content
                   offerings, (c) the CompuServe(R) brand service and any other
                   CompuServe products or services (d) "Driveway," "ICQ(TM),"
                   "AOL NetFind(TM)," "AOL Instant Messenger(TM)," "Digital
                   City," "NetMail(TM)," "Electra", "Thrive", "Real Fans",
                   "Love@AOL", "Entertainment Asylum," "AOL Hometown," "My News"
                   or any similar independent product, service or property which
                   may be offered by, through or with the standard narrow band
                   version of Digital City's local content offerings, (e) any
                   programming or Content area offered by or through such local
                   content offerings over which AOL does not exercise complete
                   operational control (including, without limitation, Content
                   areas controlled by other parties and member-created Content
                   areas), (f) any yellow pages, white pages, classifieds or
                   other search, directory or review services or Content offered
                   by or through such local content offerings, (g) any property,
                   feature, product or service which AOL or its affiliates may
                   acquire subsequent to the Effective Date, (h) any other
                   version of a Digital City local content offering which is
                   materially different from the narrow-band U.S. version of
                   Digital City's local content offerings marketed under the
                   Digital City(R) brand name, by virtue of its branding,
                   distribution, functionality, Content or services, including,
                   without limitation, any co-branded version of the offerings
                   or any version distributed through any broadband distribution
                   platform or through any platform or device other than a
                   desktop personal computer, and (i) Digital City-branded
                   offerings in any local area where such offerings are not
                   owned or operationally controlled by America Online, Inc. or
                   DCI

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                   (e.g., Chicago, Orlando, South Florida, and Hampton Roads).

                   (q) ICQ ClickRewards Program. The co-branded, customized,
                   cul-de-sac website version of the ClickRewards Program to be
                   offered by Netcentives exclusively on the ICQ Service, to be
                   promoted by AOL in accordance with Section 2 hereof and to be
                   developed in accordance with this Agreement and the
                   Supplemental Agreements.

                   (r) ICQ ClickRewards User. Any ICQ User who enrolls in the
                   ICQ ClickRewards Program through the ICQ Service.

                   (s) ICQ Service. The standard and generally available version
                   of the ICQ(TM) brand service, excluding any other version of
                   the ICQ Service, ICQ.com, or the ICQ Client that is
                   materially different from the standard version thereof, by
                   virtue of its branding, distribution, functionality, content
                   or services, including, without limitation, any co-branded
                   version of such service or product, or any version primarily
                   distributed through or designed for any [***] platform or
                   through any platform or device other than a desktop
                   personal computer (e.g., a service designed primarily for
                   distribution to a hand-held, wireless personal digital
                   assistant [***]). For purposes of this
                   definition, "ICQ Client" shall mean the client software,
                   device or functionality (e.g., browser technology)
                   developed and distributed by ICQ or an affiliate of ICQ
                   that enables ICQ users to access and use the ICQ Service.

                   (t) ICQ User. Any user of the ICQ Service.

                   (u) Interactive Service. An entity offering one or more of
                   the following: ***

                   (v) Internet Redemption Items and Communication Tools. (i)
                   Internet access (e.g., ISP service), broadband and wireless
                   internet connectivity services (e.g., wireless ISP service),
                   and any other paid-for AOL products or services to be agreed
                   upon from time to time by the

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                   Parties and (ii) consumer-based e-mail, instant messaging
                   service, chat service, message boards etc. (whether paid for
                   or not).

                   (w) License. A non-exclusive, worldwide license from
                   Netcentives to AOL and its affiliates during the Term and
                   thereafter, as expressly set forth herein: ***

                   Notwithstanding the foregoing, the License shall not permit
                   AOL or its affiliates to create a Rewards Program using
                   Netcentives' trademarks, trade names or service marks without
                   the prior written consent of Netcentives.

                   (x) Loyalty Network Infrastructure. (1) The Reward Broker
                   Software, (2) the Payment System Software, (3) the standard
                   promotion modules associated with the Reward Broker Software
                   and (4) any and all relevant APIs, tools or other
                   applications owned by Netcentives that are necessary for use
                   of the technology in clauses 1, 2, 3 and/or 4 of this Section
                   (including, without limitation, all modifications, upgrades
                   and updates that are generally available to all customers to
                   each of the technologies in clauses 1, 2, 3 and/or 4 of this
                   Section (collectively, the "Updates")), each of which shall
                   be customized as necessary by Netcentives for AOL and reward
                   program member use in accordance with the Rewards Program
                   Network Services, and as otherwise set forth herein and in
                   the Supplemental Agreements. "Loyalty Network Infrastructure"
                   shall not include (x) the AOL Rewards Program (or any
                   Customized AOL Rewards Program) database and the related AOL
                   software or (y) any AOL User Information or ICQ User
                   Information.

                   (y) Marketing Consulting Services. Netcentives marketing and
                   consulting services to be provided to AOL during the Term in
                   accordance with Section 9 hereof, including without
                   limitation: (1) online Rewards Program support area creation
                   and maintenance; (2) Rewards Program user interface
                   development and maintenance (e.g., creative design, online
                   production, development of look and feel); (3) technical
                   production and maintenance of such support area (e.g.,
                   formatting of data files and back-office support); and (4)
                   front-end merchant and partner Rewards Program account

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                   management assistance.

                   (z) Netcentives Redemption Items. Airline frequent flyer
                   miles and other rewards sourced from Netcentives' syndicated
                   Rewards Program catalog.

                   (aa) Netscape. Netscape Communications Corporation's primary
                   Internet-based Interactive Site marketed under the "Netscape
                   Netcenter(TM)" brand [***], specifically excluding (a) the
                   AOL Service, (b) AOL.com, (c) any international versions of
                   such site, (d) "ICQ," "AOL Netfind(TM)," "AOL Instant
                   Messenger(TM)," "NetMail(TM)," "AOL Hometown," "My News,"
                   "Digital City(TM)," or any similar independent product or
                   service offered by or through such site or any other AOL
                   Interactive Site, (e) any programming or Content area
                   offered by or through such site over which AOL does not
                   exercise complete operational control (including, without
                   limitation, Content areas controlled by other parties and
                   member-created Content areas), (f) any programming or
                   Content area offered by or through the U.S. version of the
                   America Online(R) brand service which was operated,
                   maintained or controlled by the former AOL Studios division
                   (e.g., Electra), (g) any yellow pages, white pages,
                   classifieds or other search, directory or review services
                   or Content offered by or through such site or any other AOL
                   Interactive Site, (h) any property, feature, product or
                   service which AOL or its affiliates may acquire subsequent
                   to the Effective Date and (i) any other version of an AOL
                   or Netscape Communications Corporation Interactive Site
                   which is materially different from Netscape Communications
                   Corporation's primary Internet-based Interactive Site
                   marketed under the "Netscape Netcenter(TM)" brand, by
                   virtue of its branding, distribution, functionality,
                   Content or services, including, without limitation, any co-
                   branded versions and any version primarily distributed
                   through any [***] platform or through any platform or
                   device other than a desktop personal computer (e.g. Custom
                   NetCenters built specifically for third parties).

[***]=CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

                                      -ix-
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                   (bb) Optional Services. (i) Front-end AOL Rewards Program
                   member customer service; (ii) diagnostic statistical analysis
                   of the AOL Rewards Program or any component thereof; (iii)
                   rewards program member database design and management; (iv)
                   direct marketing email and campaign management; and (v)
                   holding and managing the Bank Operations (or any other
                   currency handling obligations with respect to any AOL
                   Property other than the ICQ Service). For the avoidance of
                   doubt, all Optional Services are incremental to the Rewards
                   Program Network Services, and are not included in the
                   services for which AOL shall pay Netcentives the Transaction
                   Fees set forth herein.

                   (cc) Payment System Software. Netcentives' server software,
                   which currently resides at Netcentives data center (provided
                   that such residence may change from time to time pursuant to
                   the mutual written agreement of the Parties) and receives and
                   processes all promotional currency transfer requests from the
                   Reward Broker Software.

                   (dd) Qualified Interactive Service. An entity offering one or
                   more of the following: [ *** ]

                   (ee) Qualified Merchant. Any merchant (1) in the AOL Rewards
                   Program or any Customized AOL Rewards Program and/or (2)
                   actively solicited on an individual basis (e.g., not as part
                   of a mass mailing) by AOL or any AOL affiliate and
                   subsequently enrolled in the ICQ Click Rewards Program or any
                   Customized ClickRewards Program.

                   (ff) Reward Broker Sale. Following the Effective Date, the
                   license to (and/or installation by) any third party of the
                   Reward Broker Software (or the purchase by AOL or any of its
                   affiliates of a license to use the Rewards

[ *** ] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.
                                      -x-
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                   Broker Software on behalf of any third party).

                   (gg) Reward Broker Maintenance. Ongoing support of third
                   parties who have installed, and who use, the Reward Broker
                   Software following the Effective Date.

                   (hh) Reward Broker Software. Netcentives' client software,
                   which typically resides at the merchant site and is capable
                   of initiating promotional currency transfers in real time to
                   the Payment System Software.

                   (ii) Rewards Program. A currency-based incentives program in
                   which program members can earn and redeem currency from a
                   network of product and service providers.

                   (jj) Rewards Program Network Services. (i) Creation,
                   operation and/or support (other than as part of the Optional
                   Services) of a Rewards Program earning and redemption
                   infrastructure using Netcentives' Loyalty Network
                   Infrastructure; (ii) management of rewards currency
                   redemption transactions, (iii) fulfillment of
                   Netcentives-sourced rewards; (iv) limited risk management;
                   (v) customization of the Loyalty Network Infrastructure (as
                   used in connection with the AOL Rewards Program) for
                   infrastructure creation or development purposes, as
                   reasonably requested from time to time during the Term by
                   AOL, which such customization shall include, in addition to
                   those further services to be specified in the Supplemental
                   Agreements: any development required to port the Reward
                   Broker Software to up to five (5) operating systems not
                   currently supported as part of the Loyalty Network
                   Infrastructure (provided that such operating systems support
                   Sun Microsystems Java Development Kit, version 1.2 or higher)
                   and other customization required for integration to be
                   mutually agreed upon by the Parties; (vi) the provision of
                   general reports to AOL regarding the AOL Rewards Program, the
                   ICQ Click Rewards Program and (if applicable) any Customized
                   Click Rewards Program, the substance of which shall be
                   mutually agreed upon by the Parties; and (vii) the granting
                   to AOL of the License. For the avoidance of doubt, the
                   Transaction Fees to be paid by AOL to Netcentives pursuant to
                   Section 7 hereof shall cover all

                                      -xi-
<PAGE>

                   of the foregoing services (i.e., without additional payment
                   by AOL).

                   (kk) Service Revenue. *** Service Revenue shall be calculated
                   according to GAAP and as reported on Netcentives' financial
                   statements.

                   (ll) Supplemental Agreement. "Supplemental Agreement" shall
                   have the meaning set forth in Part 11 of this Exhibit.

                   (mm) Supplemental Year. The one year period following the
                   expiration of the Term or termination of this Agreement or
                   any Supplemental Agreement and (at the sole election of AOL)
                   any and each successive one year period thereafter.

                   (nn) Top Tier Partner. The first *** Qualified Merchants to
                   generate *** in revenue share payments to AOL under Section 5
                   of this Exhibit A in connection with any Subsequent Program
                   Election (as defined in Section 5 of this Exhibit A).

                   (oo) Transaction. Any transaction in which an AOL Rewards
                   Program member (or Customized AOL Rewards Program member)
                   earns or redeems the relevant program currency.

                   (pp) Transaction Fee Ratchet. The rate by which the
                   Transaction Fee Cap (as defined in Section 8 of this Exhibit
                   A) may be increased during each year of any Renewal Term or
                   Simple License Election, to be calculated as follows: *** For
                   the avoidance of doubt, once the Transaction Fee Cap has been
                   established, it will not be reset at a lower rate (unless
                   otherwise agreed upon by the Parties in writing).

Terms              1. Pursuant to the terms of the Restricted Stock Purchase
Part 1--              Agreement (as defined in Part 11 of this Exhibit),
Distribution of       Netcentives shall issue to AOL *** unregistered shares of
Click Rewards on      Netcentives' common stock (the "Common Equity Stock");
the ICQ Service;      provided that the shares of Common Stock shall be adjusted
Equity                for any splits, reverse splits, etc., occurring on or
                      after the Effective Date; provided, further, that
                      Netcentives shall

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                                     -xii-
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                   deliver the certificates representing such Common Stock as
                   soon as reasonably practicable following the execution of the
                   Restricted Stock Purchase Agreement. In consideration for the
                   delivery and execution of this Agreement by AOL, Netcentives
                   hereby agrees to execute and deliver the Restricted Stock
                   Purchase Agreement and the Common Stock to AOL. Netcentives
                   hereby acknowledges and agrees that its delivery of the stock
                   certificates evidencing the Common Stock to AOL is subject to
                   regulatory approval, and that for such reason, as of the
                   Effective Date, AOL has not received such stock certificates
                   from Netcentives. Netcentives agrees to (1) execute the
                   Restricted Stock Purchase Agreement within ten (10) days
                   following the Effective Date (provided that such agreement
                   shall reflect terms substantially similar to those terms set
                   forth in Section 1 and Section 44 of this Exhibit A) and (2)
                   deliver such Common Stock certificates to AOL as soon as
                   reasonably practicable after the Effective Date (the "Stock
                   Delivery Obligation"). The Parties acknowledge and agree that
                   in the event that Netcentives fails to comply with the Stock
                   Delivery Obligation, AOL shall have the right to seek
                   specific performance with respect to the performance of such
                   obligation by Netcentives. There will be no restrictions
                   imposed on AOL beyond those imposed or required by applicable
                   law. With respect to the Common Stock, AOL shall be granted
                   *** as further set forth in the Restricted Stock Purchase
                   Agreement (as defined in Section 45). In the event that the
                   Parties fail to execute the Restricted Stock Purchase
                   Agreement (which shall reflect the foregoing registration
                   obligation) within thirty (30) days following the Effective
                   Date, AOL shall have the right to terminate the Software
                   Exclusivity and/or the Program Exclusivity. Netcentives shall
                   comply with all of the reporting requirements of the
                   Securities and Exchange Act of 1934, as amended, and shall
                   comply with other public information reporting requirements
                   of the Securities and Exchange Commission which are
                   conditions to the availability of Rule 144 for the sale of
Promotion of       the Common Stock. Netcentives represents that none of its
Click Rewards      existing strategic investors has the right to anti-dilution
                   protection (e.g., full ratchet, weighted-average ratchet)..
                   In the event that Netcentives grants any existing or future
                   investor the right to any such anti-dilution protection,
                   Netcentives shall grant to AOL the same such rights.

***CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

                                     -xiii-
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                   2. ICQ shall prominently feature, offer and promote the ICQ
                   ClickRewards Program to ICQ members across the ICQ Service.
                   The initial implementation of such promotional requirement
                   shall include, where feasible, the following (and any future
                   implementation shall be consistent in terms of prominence
                   (e.g., in terms of size, location, appearance, frequency,
                   duration and the like) with the following):

                   (a) On the ICQ Service, the ClickRewards Program will be
                   "co-branded" during the Initial Term with the name
                   "ClickRewards" or any other Netcentives Mark agreed upon by
                   the Parties from time to time (the "ClickRewards Name").
                   "Co-branding" means that the ICQ Rewards Program will be
                   labeled and marketed during the Initial Term with the name
                   "ICQ ClickRewards" or such other name as ICQ and Netcentives
                   designate (the "ICQ Rewards Name"), and the ICQ ClickRewards
                   Program shall, where feasible and to the extent not
                   inconsistent with the ICQ Look and Feel, have a prominent tag
                   line such as "Powered by Netcentives" or "Provided by
                   Netcentives," and/or a Netcentives trademark, trade name or
                   logo (each, a "Netcentives Mark"). The ClickRewards tag line
                   and/or Netcentives Mark (the "Brandings") will be included
                   prominently in (and where feasible, will be placed within
                   reasonable proximity to the ICQ brandings in) the (A) areas
                   which provide information regarding the use of and enable ICQ
                   users to check account balances and other activities of the
                   ICQ ClickRewards Program (collectively, the "Support Area"),
                   and (B) other areas within the ICQ Service that relate
                   principally to the ICQ ClickRewards Program (the "Branded
                   Areas").

                   (b) The Brandings will also appear prominently in
                   advertising, promotional, public relations and marketing
                   material relating principally to the ICQ Click Rewards
                   Program. ICQ management will work with Netcentives' team to
                   create mutually agreed-upon new marketing initiatives for the
                   ICQ ClickRewards Program to be marketed to ICQ members (e.g.,
                   bonus ICQ ClickRewards points for referrals, creation of
                   offers targeted to an international user base (e.g.,
                   multilingual products and services, etc.).

                   (c) The name, design and "look and feel" of the Co-Branded
                   Areas will be determined by ICQ in its reasonable

                                     -xiv-
<PAGE>

                   discretion, upon consultation with Netcentives.

                   (d) The promotions on the ICQ Service will include other
                   prominent promotional placements related to the ICQ Click
                   Rewards Program to be mutually agreed upon by the Parties
                   within forty (45) days following the Effective Date. In the
                   event that the Parties cannot agree to such promotional
                   placements within such time period, the Parties will resolve
                   such dispute in accordance with the dispute resolution
                   provisions set forth in Part 10 hereof.

Revenue Share      Netcentives will have the ability to send communications and
                   promotions to ICQ ClickRewards Users solely in accordance
                   with (1) the user communication and solicitation restrictions
                   set forth in Sections 21 and 22 below and the Supplemental
                   Agreements and (2) AOL's and ICQ's standard privacy policies.
                   In the event that AOL or ICQ (as the case may be) amends its
                   respective privacy policy during the Term so as to prevent
                   third parties from communicating in any way with ICQ Click
                   Rewards Users (or any users of any Customized ClickRewards
                   Program into which AOL has opted any AOL Property), the
                   Parties agree to discuss in good faith a way to resolve such
                   issue. If the issue is not resolved in a reasonable period of
                   time, the Parties will submit such issue to the dispute
                   resolution provisions set forth in Part 10 of this Agreement.

                   3. (a) Netcentives shall pay AOL, on a quarterly basis, the
                   following share of the Service Revenues from the earning of
                   ICQ ClickRewards Program currency by ICQ ClickRewards Users
                   (collectively, "ICQ Service Revenues"): *** Each of the
                   percentages of the Service Revenues set forth above shall be
                   referred to herein as an "Service Revenue Share Percentage"
                   and collectively as the "Service Revenue Share Percentages").
                   ***

                   (b) In the event that, during the Term, AOL elects to enable
                   a Rewards Program for any AOL Property, AOL shall have the
                   unilateral right (but not the obligation) to opt such
                   property into the AOL Rewards Program, a Customized
                   ClickRewards Program or (provided that AOL complies with the
                   Software Exclusivity) an entirely separate Customized AOL
                   Rewards Program. In the event that AOL elects to opt any
                   other AOL Property into a Customized ClickRewards Program
                   (i.e., AOL elects to utilize

***CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
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                                      -xv-
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                   ClickRewards currency as the currency for the rewards program
                   on any such incremental AOL Property), (a) AOL will use
                   commercially reasonable efforts to promote such Customized
                   ClickRewards Program to users of such property on a basis
                   consistent with the promotional efforts of ICQ set forth in
                   this Agreement and (b) each registration of a member or user
                   of such other AOL Property for such Customized ClickRewards
                   Program (and the amount of Service Revenues generated by any
                   user or member on such incremental AOL Property in connection
                   with any such program) shall count towards the above
                   Registration Hurdles (and aggregate ICQ Service Revenues, as
                   the case may be). For example, in the event that AOL opts
                   Digital City into a Customized ClickRewards Program (the "DCI
                   Program"), and Five Million (5,000,000) Digital City users
                   register for the DCI Program and Ten Million (10,000,000) ICQ
                   Users have registered for the ICQ Click Rewards Program, then
                   AOL shall be entitled to receive at least *** of the
                   aggregate Service Revenues generated thereafter by ICQ
                   ClickRewards Users and DCI Program members.

Part 2 -           4. (a) In connection with any Reward Broker Sale, third party
Distribution of    merchants or companies (i) will agree to the standard terms
Loyalty Network    of the license from Netcentives to such third party to use
Infrastructure;    Reward Broker Fee Software and (ii) will pay Netcentives (or
Installation Fee   AOL shall have the right, but not the obligation, to pay
and Maintenance    Netcentives on any such third party merchant's or company's
Fee Revenue        behalf) a one-time fee for Reward Broker Software
Share              installation (the "Installation Fee"). As of the Effective
                   Date, this fee is currently priced at ***. Third party
                   merchants or companies shall also pay Netcentives an annual
                   fee for Reward Broker Maintenance (the "Maintenance Fee"),
                   which (as of the Effective Date) is currently priced at ***.
                   In no event shall the Installation Fee and/or the Maintenance
                   Fee charged to third parties participating in the AOL Rewards
                   Program, the ICQ Click Rewards Program or any Customized
                   ClickRewards Program be *** after the Effective Date;
                   provided, however, that Netcentives may from time to time
                   elect to discount or waive any such fees, for a non-material
                   percentage of the aggregate AOL Rewards Program, ICQ Click
                   Rewards Program and (if applicable) Customized Click Rewards
                   Program merchant partners. Netcentives shall have the right,
                   at its sole discretion, to change the rate

***CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
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                                     -vxi-
<PAGE>

                   card pricing of the Installation Fee or Maintenance Fee.

                   (b) ***

                   5. In the event that following installation or use of the
                   Reward Broker Software, any Qualified Merchant activates its
                   Reward Broker Software to participate in (or otherwise elects
                   to participate in) any other Rewards Program owned or
                   controlled by Netcentives (each, a "Subsequent Program
                   Election"), Netcentives shall pay AOL *** for each
                   Transaction where the member earns points at such merchant in
                   connection with any such other Rewards Program owned or
                   controlled by Netcentives; provided that such amount will be
                   paid as revenue from the Transaction, as recognized according
                   to GAAP and as reported on Netcentives' financial statements.
                   The amounts received by AOL under Paragraphs 4 and 5
                   (collectively, the "Software Distribution Revenue Share
                   Amount") shall not exceed a maximum of *** during the Term
                   (the "Software Distribution Revenue Share Cap"); provided,
                   however, that AOL shall receive no more than (a) *** under
                   Paragraphs 4 and 5 for each Top Tier Partner, or (b) ***
                   under Paragraphs 4 and 5 for any other AOL Rewards Program
                   partner; provided, further, that during the Initial Term, the
                   Software Distribution Revenue Share Amount paid under
                   Sections 4 and 5 hereof shall never exceed the Transaction
                   Fees paid by AOL to Netcentives under Section 7 hereof.

Part 3             6. Within thirty (30) days following the Effective Date, AOL
Establishment      shall pay Netcentives a one-time Rewards Program design and
of AOL Rewards     set-up fee in Custom the amount of *** (the "Design and
Custom Loyalty     Set-Up Fee"). Such Design Set-Up Fee shall include the basic
Program and        integration for any AOL Property that AOL elects to opt into
Consulting         the AOL Rewards Program, but shall not include the design and
Services           set-up fee for the development of an entirely new AOL Rewards
                   Program (i.e., other than the AOL Rewards Program). Basic
                   integration and customization for any AOL Property that AOL
                   elects to opt into any Customized ClickRewards Program shall
                   be covered by the Consulting Agreement and any payments by
                   AOL to Netcentives in connection therewith shall count
                   towards the Marketing Consulting Services Floor Amount. Such
                   Design and Set-Up Fee shall include the initial promotion
                   design, customizing program features (such as member sign-up
                   process) to work with existing programs, integration of the
                   Rewards Program for AOL Users existing

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THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
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                                     -xvii-
<PAGE>

                   on the Effective Date into the AOL Rewards Program, and other
                   services to be set forth in the technical specifications to
                   be agreed upon by the Parties with respect to the AOL Rewards
                   Program launch.

                   7. AOL shall pay the following Transaction fees ("Transaction
                   Fees") on a bi-monthly basis to Netcentives during the Term
                   (where the number of transactions is reset to zero at the end
                   of each 12-month period of the Term); ***. In the event that
                   the payment by AOL of the Transaction Fees on a bi-monthly
                   basis adversely affects AOL from an operational or
                   administrative standpoint, AOL shall have the right to pay
                   the Transaction Fees to Netcentives on a quarterly basis
                   during the remainder of the Term (upon thirty (30) days prior
                   written notice to Netcentives) (the "AOL Payment Adjustment
                   Right").

                   (i) *** per Transaction for each Transaction up to ***
                   Transactions.

                   (ii) *** per Transaction for each Transaction above ***
                   Transactions and below *** Transactions;

                   (iii) *** per Transaction for each Transaction above ***
                   Transactions and below *** Transactions; and

                   (iv) *** per Transaction for each Transaction above ***
                   Transactions.

                   The Transaction Fees shall cover the cost of the Rewards
                   Program Network Services solely for use by AOL and its
                   affiliates, but shall not include any Optional Services or
                   Marketing Consulting Services, nor any payments for ICQ Click
                   Rewards Program (or Customized Click Rewards Program)
                   currency. Each of the rates set forth above *** shall be
                   referred to herein as a "Transaction Fee Rate."

                   8. As part of the Transaction Fee arrangement set forth
                   above, AOL shall pay Netcentives on a prorated, bi-monthly
                   basis (subject to the AOL Payment Adjustment Right) and upon
                   the receipt of an appropriate invoice from Netcentives , no
                   less than *** in aggregate Transaction Fees during each year
                   of the Initial Term (the "Minimum Transaction Fee Amount");
                   provided, however, that AOL shall not be required to pay
                   Netcentives more than *** in aggregate

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                                    -xviii-
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                   Transaction Fees during any year of the Term or during any
                   Supplemental Year (the "Transaction Fee Cap") (as the same
                   may be increased pursuant to the Transaction Fee Ratchet
                   during any Renewal Term or any Simple License Election,
                   pursuant to the terms and conditions of this Exhibit A).

                   9. Provided that Netcentives satisfies certain performance
                   metrics to be agreed upon by the Parties in accordance with
                   Section 12 of this Exhibit A and the Supplemental Agreements,
                   AOL will pay to Netcentives a minimum of *** in the aggregate
                   during the Term for Marketing Consulting Services (the
                   "Marketing Consulting Services Floor Amount"), with a minimum
                   of *** of such amount to be paid during the first year of the
                   Term and a minimum of *** of such amount to be paid during
                   each of the second and third years of the Term (in each case,
                   on a prorated, bi-monthly basis (subject to the AOL Payment
                   Adjustment Right)); provided, however, that Netcentives shall
                   create a Marketing Consulting Services team, the composition
                   of which (i.e. junior, senior, etc.) will be subject to AOL's
                   approval (which will not be unreasonably withheld or delayed)
                   and which such team AOL will work with Netcentives to build
                   over time; provided, further, that in connection with such
                   Marketing Consulting Services, AOL shall pay Netcentives at
                   ***. AOL shall pay all reasonable, duly-documented,
                   out-of-pocket expenses incurred by Netcentives in connection
                   with such Marketing Consulting Services. For customization
                   services performed by Netcentives beyond those included in
                   the Rewards Program Network Services but non-technical in
                   nature, AOL shall pay Netcentives at *** and such payments
                   shall count towards the Marketing Consulting Services Floor
                   Amount. For customization services performed by Netcentives
                   beyond those included in the Rewards Program Network Services
                   that are technical in nature, AOL shall pay Netcentives at
                   *** and such payments shall not count towards the Netcentives
                   Marketing Consulting Services Floor Amount. For the avoidance
                   of doubt, the Marketing Consulting Services team would not
                   provide any of the technological customization services
                   discussed herein.

Part 4             10. AOL shall have the right (but not the obligation) to
Bank Operations    transition to Netcentives all or a portion of the Bank
and Database       Operations associated with all then-existing rewards points
                   in the AOL Rewards Program on terms to be negotiated and

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                                      -xix
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                   mutually agreed to by the Parties. In the event that, at any
                   time following the one (1) year anniversary of the Effective
                   Date, AOL determines (which such determination shall be in
                   AOL's sole discretion) to transition all or a portion of the
                   Bank Operations to any third party, AOL will provide
                   Netcentives with a right of first negotiation with respect to
                   maintaining all or such portion (as the case may be) of the
                   Bank Operations. During the twelve (12) month period
                   following the Effective Date, AOL will provide Netcentives
                   reasonable advance notice (not to be less than thirty (30)
                   days) of the transitioning of the Bank Operations to any
                   third party. In addition to the foregoing, AOL will explore
                   with Netcentives the possibility of transferring to
                   Netcentives responsibility for the AOL Rewards Program
                   database.

Part 5             11. (a) Term. Netcentives hereby grants AOL and its
License            affiliates with the License during the Term (and thereafter
                   as expressly set forth herein), and shall provide AOL any and
                   all Updates (and/or other updates or upgrades thereto)
                   developed by and/or distributed by or on behalf of
                   Netcentives during the Term. Other than as part of the
                   Transaction Fees set forth above, AOL shall not be required
                   to pay any licensing or similar fees in connection with or
                   related to the License or the right to receive any Updates.
                   In addition, the Parties hereby acknowledge and agree that no
                   member of or participant in the AOL Rewards Program, ICQ
                   Click Rewards Program and/or (if applicable) Customized
                   ClickRewards Program shall be required to pay any licensing
                   or similar fees (other than any Installation Fees and/or
                   Maintenance Fees to be paid by merchant partners) to
                   Netcentives in order (i) to use the Loyalty Network
                   Infrastructure, the Rewards Broker Software or any component
                   thereof, Upgrade thereto or other intellectual property right
                   of Netcentives licensed to AOL or any affiliate as part of
                   the License set forth herein, or (ii) to participate in the
                   AOL Rewards Program, any Customized AOL Rewards Program, the
                   ICQ ClickRewards Program or the Customized ClickRewards
                   Program. Nothing in this Agreement will preclude Netcentives
                   from charging any AOL Rewards Program, ICQ Click Rewards
                   Program, Customized AOL Rewards Program or Customized
                   ClickRewards Program member, merchant or partner any fees in
                   connection with the use of any Netcentives software that is
                   not necessary for participation in any such Rewards

                                      -xx-
<PAGE>

                   Program, provided, however, that no such software shall be
                   offered, sold or distributed on or through any AOL Property
                   without the express written consent of AOL. To the extent
                   reasonably practicable, Netcentives shall deliver any and all
                   software to be delivered hereunder and/or under the
                   Supplemental Agreements electronically.

                   (b) Renewal. In the event that AOL elects to extend this
                   Agreement to a Renewal Term, as set forth in Section 17
                   hereof, the terms and conditions of this Agreement and any
                   Supplemental Agreements shall remain in full force and effect
                   (except as otherwise agreed upon by the Parties and as set
                   forth below); provided, however, that:

                   (i) AOL shall continue to be subject to the Software
                   Distribution Revenue Share Cap, and Netcentives shall
                   continue to be subject to the Transaction Fee Cap (as
                   increased pursuant to the Transaction Fee Ratchet);

                   (ii) ICQ shall have the right (but not the obligation) to
                   continue the Program Exclusivity, to continue offering the
                   ICQ ClickRewards Program on a non-exclusive basis (the
                   "Non-Exclusive Continuation") or to terminate the ICQ
                   ClickRewards Program ("ClickRewards Termination"). In the
                   event that (A) ICQ continues the Program Exclusivity, the
                   Service Revenue sharing arrangement and AOL's promotional
                   obligations under Section 2 that existed during the Initial
                   Term shall continue in full force and effect, (B) ICQ
                   exercises the Non-Exclusive Continuation, each of the Service
                   Revenue Share Percentages shall be reduced by ***, or (C) ICQ
                   exercises the ClickRewards Termination, the Parties shall
                   enter into a wind-down arrangement with respect to the ICQ
                   ClickRewards Program to be set forth in the Supplemental
                   Agreements and the Service Revenue sharing arrangement shall
                   be ***. In the case of (B) above, the Parties shall mutually
                   agree, at the time of the election by AOL for a Non-Exclusive
                   Continuation, to a level of promotion of the ICQ Click
                   Rewards Program to be carried out by ICQ on the ICQ Service
                   during any such Non-Exclusive Continuation; provided,
                   however, that in the event that the Parties cannot agree to
                   such level of promotion within forty-five (45) days following
                   such election by AOL for a Non-Exclusive Continuation, the
                   Parties will submit such dispute to the Dispute Resolution
                   provisions set forth in Part 10 hereof. In the case of (C)

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                                     -xxi-
<PAGE>

                   above, the Parties hereby acknowledge and agree that neither
                   AOL nor ICQ shall have any of the obligations set forth in
                   Section 2 hereof and that Netcentives shall not have any of
                   the obligations set forth in Section 24 through 28 hereof;

                   (iii) AOL shall not be required to pay Netcentives any
                   minimum Marketing Consulting Fees or (unless AOL elects to
                   opt in an AOL Property to a separate Rewards Program operated
                   by Netcentives) , any further Design and Set-up Fee.

                   ***

                   ***

                   (e) Wind-Down Period. Within ninety (90) days following early
                   termination by Netcentives of this Agreement or any
                   Supplemental Agreement for cause (i.e., pursuant to Section
                   15 of the main text of this Agreement) or for an AOL Change
                   of Control Event pursuant to Section 18 hereof, Netcentives
                   shall have the right (but not the obligation), in addition to
                   any other rights under the this Agreement or any Supplemental
                   Agreement, to cause the Parties to enter into a wind-down
                   period, the terms of which shall be agreed upon pursuant to
                   the terms of the Supplemental Agreements.

                   ***

                   (g) Co-Development. Any works, including without limitation,
                   software or other copyrightable materials, as to which both
                   Parties (or their employees, contractors or agents) are joint
                   authors, and any patents as to which both Parties (or their
                   employees, contractors, or agents) are co-inventors
                   (collectively, the "Joint Work Product") shall be jointly
                   owned by the Parties (with each Party having the right to use
                   and exploit, or authorize the use or exploitation by others
                   of such Joint Work Product; provided that such use or
                   exploitation is not in breach of this Agreement), without an
                   obligation to obtain the consent of, or to account to, the
                   other Party and subject to Netcentives' and AOL's (or any AOL
                   affiliate's) respective proprietary rights in any underlying
                   software, works, or technology to the extent incorporated or
                   included in such Joint Work Product. Notwithstanding the
                   foregoing, to the extent that with respect to any
                   co-developed works created under this Agreement, the Parties
                   shall not constitute co-authors or co-

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                                     -xxii-
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                   inventors, and either Party owns such works or inventions as
                   a matter of law, , then the non-owning Party shall be deemed
                   by this reference to have a fully paid-up, royalty-free,
                   non-exclusive, non-transferable and worldwide license for the
                   Term to use, reproduce, distribute (directly and indirectly),
                   transmit, display, perform, sublicense and adapt such works
                   or inventions as set forth in this Agreement. Each Party
                   shall cooperate with the other Party in documenting and
                   perfecting all rights with respect to the Joint Work Product,
                   including executing any necessary assignments, applications
                   or other documentation with respect to the Joint Work
                   Product.

                   (h) API Support. Netcentives hereby warrants that for so long
                   as AOL or its affiliates have rights under the License,
                   Netcentives agrees that the Loyalty Network Infrastructure
                   (or any successor thereto) shall contain all functionality
                   reasonably necessary to support and use the APIs provided to
                   AOL or its affiliates by Netcentives, and agrees that no
                   modifications by Netcentives to the Loyalty Network
                   Infrastructure shall materially impair or degrade such
                   functionality. To the extent reasonably necessary for AOL to
                   modify, develop, add, delete or use any functionality or
                   features of the Loyalty Network Infrastructure, Payment
                   System Software or Rewards Broker Software in connection with
                   the development of any Additional Modifications pursuant to
                   Section 13(a)(iii) hereof, Netcentives shall provide to AOL
                   APIs to the Loyalty Network Infrastructure, Payment System
                   Software and/or Reward Broker Software (as applicable) so
                   that such Additional Modifications can interoperate with
                   (including use of the principal functions of) the Loyalty
                   Network Infrastructure, Payment System Software or Rewards
                   Broker Software; provided, however, that, to the extent that
                   such APIs are insufficient to enable such interoperability,
                   Netcentives shall modify, as promptly as commercially
                   reasonable, the APIs (to be paid by AOL in accordance with
                   the technical customization provisions of Section 9 hereof),
                   the Loyalty Network Infrastructure, Payment System Software
                   or Rewards Broker Software to enable such interoperability.
                   Netcentives shall own all additions and extensions to such
                   API (but not the Additional Modifications, which shall be
                   owned by AOL) and such additions and extensions shall form
                   part of the License granted by Netcentives to AOL and its
                   affiliates hereunder.

                                    -xxiii-
<PAGE>

                   (i) Other. The Parties will agree to negotiate in good faith
                   the other relevant terms of the License (e.g., terms relating
                   to AOL building and/or implementing a replacement loyalty
                   network infrastructure during a wind-down period using the
                   APIs related to the Loyalty Network Infrastructure) as part
                   of the Supplemental Agreements.

Part 6
***                12. ***

Part 7             13. (a)(i) Software Exclusivity.  During the Term, AOL and
Exclusivity;       its affiliates will not *** (collectively, the "Software
Cross-Promotion    Exclusivity") provided, however that the foregoing shall in
                   no way prevent AOL nor any AOL affiliate from providing any
                   user of the AOL Network with access on or through the AOL
                   Network (via any platform whatsoever, whether narrow-band,
                   broadband or otherwise) to the Loyalty Network
                   Infrastructure or Rewards Program of any third party. AOL
                   hereby represents that to the best of AOL's knowledge and
                   the knowledge of each of the AOL Properties (as the case
                   may be), as of the Effective Date, there are no existing
                   arrangements to which AOL is a party that would have a
                   material adverse effect on the Software Exclusivity.

                   (ii) Netcentives Rewards Program Exclusivity. During the Term
                   ***. For purposes of this Agreement, "Click Rewards Network"
                   shall mean the ClickRewards Program and any similar or
                   successor Rewards Program owned or controlled by Netcentives
                   (other than those programs which are co-branded with or
                   operated on behalf of any third party on a private label
                   basis, or any non-consumer-based solutions (e.g.,
                   employee-based rewards programs for individual entities).

                   (iii) Development of Proprietary Loyalty Network
                   Infrastructure by AOL; Implementation of Complementary
                   Functionality. For the avoidance of doubt, nothing in this
                   Agreement or the Supplemental Agreements shall prevent AOL or
                   any of its affiliates from developing a proprietary Rewards
                   Program or loyalty network infrastructure ("Proprietary
                   Infrastructure") during the Term, provided, that neither AOL
                   nor any AOL affiliate shall develop such Proprietary
                   Infrastructure using the Source Code or

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                                     -xxiv-
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                   Confidential Information of Netcentives; provided, further,
                   that AOL will provide Netcentives with reasonable advance
                   notice (not to be less than ***) of any public
                   implementation, use or distribution to its members or users
                   of any such Proprietary Infrastructure, which such
                   implementation, use or distribution shall not occur until
                   after the Initial Term. Netcentives shall have the right to
                   terminate this Agreement or any Supplemental Agreements in
                   the event that AOL's implementation, use or distribution of
                   the Proprietary Infrastructure occurs during any Renewal
                   Term. The Parties hereby acknowledge and agree that each of
                   the Software Exclusivity and Program Exclusivity does not
                   preclude, and in no way shall prevent, AOL or any of its
                   affiliates from implementing, using, promoting, marketing or
                   advertising on any AOL Property any feature or functionality
                   that complements the Loyalty Network Infrastructure (e.g., a
                   plug-in, etc.) developed by AOL or any AOL affiliate prior to
                   or after the Effective Date (e.g., the Bank Operations,
                   wallet-based rewards program member tracking, OpinionPlace,
                   etc.) (collectively, "Additional Modifications").

                   (iv) (a) To the best of its knowledge after due inquiry,
                   Netcentives hereby represents that AOL or its affiliates
                   shall have the right (at any time during the Term or in any
                   Supplemental Year in which the Software Exclusivity is in
                   full force and effect) to do any of the following, and ***.
                   In addition, in consideration for AOL's reliance on the
                   foregoing representation, Netcentives hereby warrants that in
                   the event that AOL conducts any of the foregoing activities
                   at any time during the Term (or in any Supplemental Year in
                   which the Software Exclusivity is in full force and effect),
                   and any such activity violates or breaches any such ***, that
                   Netcentives hereby releases and forever discharges AOL and
                   all of its affiliates, employees, agents, successors,
                   assigns, representatives, directors and officers, from and
                   against any and all actions, causes of action (in law or
                   equity), claims, suits, demands or other obligations or
                   liabilities of any nature whatsoever, whether known or
                   unknown, which Netcentives or any of its employees, agents,
                   successors, assigns, legal representatives, directors and
                   officers now have (i.e., as of the Effective Date), or may in
                   the future have, by reason of, or arising out of, or in
                   connection with, any of the foregoing activities (at any time
                   during the Term (or in any

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                                     -xxv-
<PAGE>

                   Supplemental Year in which the Software Exclusivity is in
                   full force and effect)).

                   (b) In the event that AOL elects (which such election shall
                   be in its sole discretion) to fulfill any redemption of the
                   AOL Rewards Program (or any Customized AOL Rewards Program)
                   currency through Netcentives for frequent flier miles of any
                   passenger airline, AOL shall pay Netcentives a reasonable
                   handling fee (e.g., ***) to be mutually agreed upon by the
                   Parties pursuant to the terms of the Supplemental Agreements.

                   (c) The Parties will (1) work together to source stand-alone
                   purchases of Partner Airline currency through Netcentives ***
                   to the extent permitted by applicable law, and other than in
                   connection with any AOL Marketing Agreement, work together to
                   ***.

                   14. Other than the ICQ ClickRewards Program, ICQ shall not
                   *** (subject to compliance by Netcentives with its material
                   obligations under this Agreement or the Supplemental
                   Agreements) (the "Program Exclusivity"). During any Renewal
                   Term, the status of Program Exclusivity shall be governed by
                   the terms of Section 11(b)(ii). In the event that ICQ
                   terminates the Program Exclusivity during the Term (as
                   permitted by the terms of this Agreement), Netcentives shall
                   no longer be subject to the terms of clause (C) of Section
                   13(a)(ii) of this Exhibit A.

                   15. During the Term, Netcentives shall promote AOL online on
                   its principal Interactive Site ( www.clickrewards.com, or any
                   successor Interactive Site) (the "ClickRewards Site"), by
                   placing a prominent "Try ICQ" feature or promotion of other
                   AOL products or services selected by AOL on the front page of
                   the Click Rewards Site in connection with ICQ Click Rewards
                   Program offers. In addition, Netcentives shall promote (i)
                   AOL as its preferred Interactive Service for the ClickRewards
                   Network and (ii) AOL and the AOL Rewards Program in its
                   corporate (i.e. Netcentives) marketing initiatives, as
                   mutually agreed upon by the Parties. AOL shall prominently
                   promote the AOL Rewards Program in a manner to be determined
                   by AOL following consultation with Netcentives.

Part 8             16. Should AOL decide to use Netcentives Reward Items in the
Use of             AOL Rewards
Netcentives

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                                     -xxvi-
<PAGE>

Reward Items       Program or any Customized AOL Rewards Program (which such
                   decision shall be in the sole discretion of AOL), AOL will
                   pay Netcentives (i) the lower of (a) *** or (b) *** to
                   include such miles in the AOL Rewards Program catalog, and
                   (ii) with respect to non-frequent-flyer Netcentives Reward
                   Items, the cost incurred by Netcentives in obtaining and
                   fulfilling such item plus the lower of (x) *** or (y) ***.

Part 9             17. The term of the Agreement shall be three (3) years (the
Other Terms        "Initial Term"), provided that, upon expiration of the
                   Initial Term, AOL shall have the right to renew the Agreement
                   for unlimited, successive, additional terms of two (2) years
                   each (each, a "Renewal Term," and together with the Initial
                   Term, collectively, the "Term").

                   18. (a) Change of Control - Netcentives. In the event of (i)
                   any Change of Control of Netcentives by any Interactive
                   Service, or by any other Rewards Program owned or controlled
                   by an Interactive Service, or (ii) in the event of any Change
                   of Control by Netcentives of a Rewards Program owned or
                   controlled by a Baseline Interactive Service ((i) and (ii)
                   collectively referred to as a "Netcentives Change of Control
                   Event"), AOL shall have the unilateral right to terminate
                   this Agreement and/or any Supplemental Agreement (the "AOL
                   COC Termination Right"); provided, however, that in the case
                   of clause (ii) above, in the event that, within a period of
                   *** days following such Change of Control, Netcentives
                   integrates the acquired or merged Rewards Program into the
                   Click Rewards Program (and/or any Customized ClickRewards
                   Program, as the case may be) or otherwise causes such
                   acquired or merged Rewards Program to comply with the terms
                   of Section 13(a)(ii) hereof, AOL shall not have the ability
                   to exercise such AOL COC Termination Right.

                   (b) Change of Control - AOL. In the event of a Change of
                   Control by AOL of a competitor of Netcentives (i.e., any
                   company the majority of whose revenues is generated by
                   currency-based rewards programs or setting up merchant-based
                   user loyalty networks, and provided that in no event shall
                   Time Warner, Inc. or any of its affiliates be deemed a
                   competitor of Netcentives for purposes of this Agreement or
                   the Supplemental Agreements) (an "AOL Change of Control
                   Event"), Netcentives shall have the unilateral right to
                   terminate this Agreement and/or any Supplemental

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                                   -xxvii-
<PAGE>

                   Agreement.

                   19. Each Party (the "IP Indemnifying Party") shall, at its
                   sole cost and expense, indemnify, hold harmless and defend
                   the other Party, and such other Party's officers, directors,
                   agents, affiliates, distributors, franchisees and employees
                   (the "IP Indemnified Party"), from any and all claims,
                   demands, liabilities, costs or expenses (including, without
                   limitation, reasonable attorney's fees) (collectively, the
                   "Liabilities") arising from or in connection with a
                   third-party claim that any of the software or other products,
                   services, Content (as defined in Exhibit B to this
                   Agreement), trademarks, trade names or service marks of such
                   IP Indemnifying Party infringes upon any patents, copyrights,
                   trade secrets, trademarks or other proprietary rights of such
                   third party. The IP Indemnifying Party shall pay any damages
                   (including costs and attorneys' fees) finally awarded against
                   the IP Indemnified Party by a court of competent jurisdiction
                   as a result of such claim (or pay any settlement of such
                   claim agreed to by the IP Indemnifying Party).

                   20. In the event that during the Term, (a) one (1) or more
                   infringement actions, claims or proceedings (each, a "Claim")
                   is or are brought against either Party concerning the Loyalty
                   Network Infrastructure (or any component thereof), or any
                   intellectual property rights related thereto (each, an
                   "Infringement Claim" and collectively, "Infringement Claims")
                   and (b) any such Infringement Claim or Infringement Claims
                   result(s) in or is reasonably likely to result in the
                   issuance of a preliminary or permanent injunction prohibiting
                   the promotion, distribution or use of any of the foregoing,
                   then Netcentives shall have the obligation to (as promptly as
                   reasonably possible):

                   (i) modify (at the sole cost and expense of Netcentives) the
                   software or other materials that are the subject of such
                   claim to perform their intended function without infringing
                   third party rights and without materially affecting the
                   functionality or performance of such software or other
                   materials, or

                   (ii) substitute non-infringing software or other materials
                   (at the sole cost and expense of Netcentives) that are the

                                    -xxviii-
<PAGE>

                   subject of such claim with items of materially comparable
                   functionality and performance, or

                   (iii) obtain a license (at the sole cost and expense of
                   Netcentives) permitting continued use of the software or
                   other materials by AOL that are the subject of such claim on
                   terms and conditions consistent with the rights granted to
                   AOL hereunder.

                   ***

                   21. During the Term of this Agreement and for a *** period
                   thereafter, Netcentives will not use the AOL Network
                   (including, without limitation, the e-mail network contained
                   therein) to solicit AOL Users (defined below) on behalf of
                   another Interactive Service. More generally, Netcentives will
                   not send unsolicited, commercial e-mail (i.e., "spam") or
                   other online communications through or into AOL's products or
                   services, absent a Prior Business Relationship. For purposes
                   of this Exhibit A, a "Prior Business Relationship" will mean
                   that the AOL User to whom commercial e-mail or other online
                   communication is being sent has voluntarily either (i)
                   engaged in a transaction with programs operated or controlled
                   by Netcentives or (ii) provided information to Netcentives
                   through a contest, registration, or other communication. Any
                   commercial e-mail or other online communications to AOL
                   Rewards Program members, ICQ Click Rewards Users, and/or (as
                   applicable) Customized ClickRewards Program members which are
                   otherwise permitted hereunder, will (a) include a prominent
                   and easy means to "opt-out" of receiving any future
                   commercial communications from Netcentives, and (b) shall
                   also be subject to AOL's then-standard restrictions on
                   distribution of bulk e-mail (e.g., related to the time and
                   manner in which such e-mail can be distributed through or
                   into the AOL product or service in question).

                   22. To the extent that Netcentives is permitted to
                   communicate with any users of the AOL Network ("AOL Users")
                   under this Agreement and/or the Supplemental Agreements, in
                   any such communications to AOL Users (including, without
                   limitation, e-mail solicitations), Netcentives will not
                   encourage AOL Users to take any action inconsistent with the
                   scope and purpose of this Agreement and the Supplemental
                   Agreements, including without limitation, the following
                   actions: (i) using an Interactive Site (as defined in

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                                     -xxix-
<PAGE>

                   the Supplemental Agreements) or Qualified Interactive Service
                   other than the AOL Properties for the redemption or earning
                   of rewards currency, (ii) using a rewards program other than
                   the AOL Rewards Program or the ICQ ClickRewards program;
                   (iii) bookmarking of Interactive Sites; or (iv) changing the
                   default home page on the AOL browser. Additionally, with
                   respect to such AOL User communications, in the event that
                   Netcentives encourages an AOL User to purchase products or
                   redeem rewards points through such communications,
                   Netcentives shall ensure that the AOL Properties are promoted
                   as the primary means through which the AOL User can do so.
                   Any communications permitted hereunder shall not be used by
                   Netcentives as a platform to sell, market, advertise or
                   promote any products or services other than those related to
                   the ICQ Click Rewards Program or (if applicable) any
                   Customized Click Rewards Program unless otherwise agreed upon
                   by AOL (such agreement not to be unreasonably withheld).
                   Notwithstanding the provisions of Sections 21 and 22 herein,
                   to the extent that an AOL User is also a member of another
                   Rewards Program owned or controlled by Netcentives or any
                   Netcentives affiliate, Netcentives shall be permitted to
                   communicate with such user via such other program in a manner
                   consistent with the privacy policy of such program; provided,
                   however, that in connection with any such communications,
                   Netcentives shall not target users of any AOL Property or the
                   AOL Network on behalf of or in relation to any other
                   Interactive Service.

                   23. Netcentives shall ensure that its collection, use and
                   disclosure of information obtained from AOL Users under this
                   Agreement or any Supplemental Agreement ("AOL User
                   Information") complies with (i) all applicable laws and
                   regulations, (ii) AOL's standard privacy policies (available
                   on the AOL Service at the keyword term "Privacy") and (iii)
                   ICQ's standard privacy policy, available at www.icq.com.
                   Netcentives will not disclose AOL User Information collected
                   hereunder to any third party in a manner that identifies AOL
                   Users as end users of an AOL product or service (or
                   identifies AOL User habits, traffic patterns, etc., either
                   individually or as a group) or use AOL User Information
                   collected under this Agreement or any Supplemental Agreement
                   to market another Interactive Service.

                                     -xxx-
<PAGE>

                   24. Netcentives shall create a specific customized area or
                   web site to be promoted and distributed by ICQ through which
                   Netcentives can market and complete transactions regarding
                   the ICQ Click Rewards Program (the "Affiliated Program
                   Site"). The Affiliated Program Site will contain only content
                   that is directly related to the ICQ Click Rewards Program,
                   and will not contain any products, services, programming or
                   other content of any Qualified Interactive Service (or any
                   Rewards Program thereof). The Affiliated Program Site will
                   incorporate an ICQ "look and feel" and ICQ-specific
                   functionality as mutually agreed upon in the Supplemental
                   Agreements. Netcentives will not promote, sell, offer or
                   otherwise distribute on the Affiliated Program Site any
                   products or services through auctions or clubs without the
                   prior written consent of AOL. Netcentives will review,
                   delete, edit, create, update and otherwise manage all content
                   available on or through the Affiliated Program Site (the
                   "Content Management Obligation") at its sole cost and expense
                   (provided, however, that AOL shall pay Netcentives for any
                   optional content management services requested by AOL (i.e.,
                   services beyond the services to be provided by Netcentives in
                   connection with the Content Management Obligation) as set
                   forth in the consulting agreement to be entered by the
                   Parties as part of the Supplemental Agreements), and in
                   accordance with the terms of the Supplemental Agreements.
                   Netcentives will ensure that the Affiliated Program Site does
                   not in any respect promote, advertise, market or distribute
                   the products, services or content of any Qualified
                   Interactive Service. Any AOL Property that AOL elects to opt
                   into any Customized ClickRewards Program shall be subject to
                   the same restrictions.

                   25. All sales of advertising inventory on Affiliated Program
                   Site will be subject to AOL's then-applicable advertising
                   policies (as disclosed by AOL to Netcentives or as otherwise
                   available online) and no sales of such advertising inventory
                   shall be made to any Qualified Interactive Service. In the
                   event that ICQ or AOL objects to the placement or nature of
                   any such advertisement, Netcentives shall promptly remove
                   such advertisement from the Affiliated Program Site. Any AOL
                   Property that AOL elects to opt into any Customized
                   ClickRewards Program shall be subject to the same
                   restrictions.

                   26. Netcentives will take commercially reasonable efforts to

                                     -xxxi-
<PAGE>

                   ensure that AOL traffic is either kept within the Affiliated
                   Program Site or channeled back into the AOL Network (e.g.,
                   through prominent availability of a "back" button, etc.), as
                   further set forth in the Supplemental Agreements. Any AOL
                   Property that AOL elects to any Customized ClickRewards
                   Program shall be subject to the same restrictions.

                   27. (a) AOL-Owned Data. During the Term and thereafter, AOL
                   shall own the e-mail address of any such ICQ Click Rewards
                   User (the "E-Mail Data"), [ *** ].

                   (b) ICQ Click Rewards User Profile Data. AOL shall own the
                   ICQ Click Rewards User profile data (e.g., demographic
                   information, behavioral information, etc.) collected on or
                   through the Affiliated Program Site (and/or any other
                   Affiliated Program Site that may be created by either of the
                   Parties from time to time in connection with this Agreement)
                   (collectively, the "User Profile Data"), [ *** ].

                                    -xxxii-

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                   (c) Jointly-Owned Data. During the Term and thereafter, the
                   Parties shall jointly own (i) the ICQ Click Rewards User
                   account balance data (and, if applicable, any Customized
                   Click Rewards Program user data) and (ii) any [ *** ] (the
                   "Mined Data," and together with the account balance data,
                   collectively referred to herein as the "Jointly-Owned Data");
                   provided, however, that each Party shall only use such
                   Jointly-Owned Data for its own internal business purposes and
                   shall not disclose any of such information (whether
                   individually or in the aggregate) to any third party;
                   provided, further, that Netcentives shall use such data in
                   accordance with the terms of Sections 21, 22 and 23 hereof.
                   AOL shall have the right to receive reports containing any
                   such Mined Data (or any portion thereof), so long as AOL pays
                   an amount to be agreed upon by the Parties for such Mined
                   Data. Any other rights of the Parties with respect to ICQ
                   Click Rewards User information following termination or
                   expiration of the Term shall be set forth in the Supplemental
                   Agreements.

                   (d) Mutual Non-Targeting Obligation. During the Term of this
                   Agreement and for a period of *** thereafter, Netcentives
                   shall not target AOL Users or ICQ Users on behalf of or in
                   relation to any Interactive Service or Rewards Program.
                   During the Term of this Agreement and for a period of ***
                   thereafter, AOL shall not target Click Rewards Program
                   members on behalf of or in relation to any Rewards Program
                   other than any Click Rewards Network Rewards Program.

                   28. Additional terms and conditions regarding the operation,
                   maintenance and distribution of the Affiliated Program Site
                   shall be set forth in the Supplemental Agreements.

                   29. In the event that following the Effective Date, either
                   Party effectuates a material change in its accounting
                   procedures (not required pursuant to any change in GAAP
                   occurring after the Effective Date) that adversely affects
                   the revenues to be received by the other Party under this
                   Agreement or any Supplemental Agreements, the Parties will
                   work together in good faith to make the adversely affected
                   Party whole, and if the Parties cannot agree to the method by
                   which (or the amount to which) the adversely affected party

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                                    -xxxiii-
<PAGE>

                   shall be made whole, such dispute shall be submitted to the
                   dispute resolution procedures of this Agreement.

                   30. Following the Effective Date, the Parties shall issue a
                   joint press release, with terms to be mutually agreed by the
                   Parties, regarding this Agreement and the relationship
                   between the Parties established hereby. The Parties will
                   mutually agree on the appropriate timing of each such release
                   and other public announcements of the relationship during the
                   Term. Each Party agrees that it shall not issue any other
                   press release or make any public announcement regarding this
                   Agreement, except with the prior written consent of the other
                   Party or as required by law; provided, however, that each
                   Party shall be permitted, without the other Party's prior
                   consent, merely to list the other Party as one of its
                   industry partners and to repeat factual information or
                   statements contained in any mutually agreed-upon press
                   release. Also, Netcentives will be able to make any
                   announcements related to the Supplemental Agreement necessary
                   to meet all legal and regulatory disclosure requirements.

                   31. Neither Party shall make, publish, or otherwise
                   communicate, or cause to be made, published, or otherwise
                   communicated, any deleterious remarks whatsoever to any third
                   parties concerning the other Party or its affiliates,
                   directors, officers, employees or agents, including without
                   limitation, the other Party's products, services, business
                   projects, business capabilities, performance of duties and
                   services or financial position.

                   32. Netcentives will maintain complete, clear and accurate
                   records of all expenses, revenues and fees in connection with
                   the performance of the Supplemental Agreements. As long as
                   the Service Revenue sharing arrangement pursuant to Section 3
                   hereof is effective, Netcentives will provide AOL with
                   standard reports regarding the ICQ ClickRewards Program and
                   any Customized ClickRewards Program. *** For the sole purpose
                   of ensuring compliance with AOL's obligations under this
                   Agreement, Netcentives shall have the right to receive from
                   AOL reports regarding AOL's performance under the
                   Supplemental Agreements, which reports shall be substantially
                   similar to those provided to similarly situated partners.

                   33. AOL cannot acquire additional shares of Netcentives stock
                   on the open market without prior approval from Netcentives.

***CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

                                    -xxxiv-

<PAGE>

                   34. As further clarified in the Supplemental Agreements, each
                   Party will collect and pay and indemnify and hold the other
                   Party harmless from, any sales, use, excise, import or export
                   value added or similar tax or duty payable by such Party, as
                   well as any costs associated with the collection or
                   withholding thereof, including attorneys' fees.

                   35. The Parties hereby agree to negotiate in good faith
                   modifications to this Agreement (as part of the Supplemental
                   Agreements) to further limit the instances in which AOL shall
                   have the right to terminate this Agreement upon a Change of
                   Control of Netcentives by an Interactive Service, provided,
                   however, that the Parties also hereby agree to negotiate in
                   good faith additional protections to be provided by
                   Netcentives to AOL in the Supplemental Agreements to ensure
                   that any such Change of Control of Netcentives will not
                   negatively impact AOL (e.g., in terms of service levels,
                   leverage, etc.).

                                     -xxxv-
<PAGE>

Part 10            36. Management Committee. The Parties will act in good faith
Dispute            and use commercially reasonable efforts to promptly resolve
Resolution         any claim, dispute, claim, controversy or disagreement (each
                   a "Dispute") between the Parties or any of their respective
                   subsidiaries, affiliates, successors and assigns under or
                   related to this Agreement or any document executed pursuant
                   to this Agreement or any of the transactions contemplated
                   hereby. If the Parties cannot resolve the Dispute within such
                   time frame, the Dispute will be submitted to the Management
                   Committee for resolution. For ten (10) days following
                   submission of the Dispute to the Management Committee, the
                   Management Committee will have the exclusive right to resolve
                   such Dispute; provided further that the Management Committee
                   will have the final and exclusive right to resolve Disputes
                   arising from any provision of the Agreement which expressly
                   or implicitly provides for the Parties to reach mutual
                   agreement as to certain terms. If the Management Committee is
                   unable to amicably resolve the Dispute during the ten-day
                   period, then the Management Committee will consider in good
                   faith the possibility of retaining a third party mediator to
                   facilitate resolution of the Dispute. In the event the
                   Management Committee elects not to retain a mediator, the
                   dispute will be subject to the resolution mechanisms
                   described below. "Management Committee" will mean a committee
                   made up of a senior executive from each of the Parties for
                   the purpose of resolving Disputes under this Section 36 and
                   generally overseeing the relationship between the Parties
                   contemplated by this Agreement. Neither Party will seek, nor
                   will be entitled to seek, binding outside resolution of the
                   Dispute unless and until the Parties have been unable
                   amicably to resolve the Dispute as set forth in this Section
                   36 and then, only in compliance with the procedures set forth
                   in this Section 36.

                   37. Arbitration. Except for Disputes relating to issues of
                   (i) (A) proprietary rights, including but not limited to
                   intellectual property and confidentiality and (B) any
                   non-compliance with the terms and conditions of Section 27 of
                   this Exhibit (or any part thereof), with respect to which the
                   Parties shall have the right to seek injunctive relief in a
                   court of competent jurisdiction, to resolve such issues
                   through amicable resolution as set forth in Part 10 of this
                   Exhibit A, or to seek any other remedies under this Agreement
                   or applicable law) and (ii) any provision of the Agreement
                   which expressly or implicitly provides for the Parties to
                   reach mutual agreement as to certain

                                    -xxxvi-
<PAGE>

                   terms (which will be resolved by the Parties solely and
                   exclusively through amicable resolution as set forth in Part
                   10 of this Exhibit A), any Dispute not resolved by any of the
                   foregoing dispute resolution mechanisms (as applicable) will
                   be governed exclusively and finally by arbitration. Such
                   arbitration will be conducted by the American Arbitration
                   Association ("AAA") in New York City, New York and will be
                   initiated and conducted in accordance with the Commercial
                   Arbitration Rules ("Commercial Rules") of the AAA, including
                   the AAA Supplementary Procedures for Large Complex Commercial
                   Disputes ("Complex Procedures"), as such rules will be in
                   effect on the date of delivery of a demand for arbitration
                   ("Demand"), except to the extent that such rules are
                   inconsistent with the provisions set forth herein.
                   Notwithstanding the foregoing, the Parties may agree in good
                   faith that the Complex Procedures will not apply in order to
                   promote the efficient arbitration of Disputes where the
                   nature of the Dispute, including without limitation the
                   amount in controversy, does not justify the application of
                   such procedures.

                   38. Selection of Arbitrators. The arbitration panel will
                   consist of three arbitrators. Each Party will name an
                   arbitrator within ten (10) days after the delivery of the
                   Demand. The two arbitrators named by the Parties may have
                   prior relationships with the naming Party, which in a
                   judicial setting would be considered a conflict of interest.
                   The third arbitrator, selected by the first two, should be a
                   neutral participant, with no prior working relationship with
                   either Party. If the two arbitrators are unable to select a
                   third arbitrator within ten (10) days, a third neutral
                   arbitrator will be appointed by the AAA from the panel of
                   commercial arbitrators of any of the AAA Large and Complex
                   Resolution Programs. If a vacancy in the arbitration panel
                   occurs after the hearings have commenced, the remaining
                   arbitrator or arbitrators may not continue with the hearing
                   and determination of the controversy, unless the Parties
                   agree otherwise.

                   39. Governing Law. The Federal Arbitration Act, 9 U.S.C.
                   Secs. 1-16, and not state law, will govern the arbitrability
                   of all Disputes. The arbitrators will allow such discovery as
                   is appropriate to the purposes of arbitration in
                   accomplishing a fair, speedy and cost-effective resolution of
                   the Disputes. The arbitrators will reference the Federal
                   Rules of Civil Procedure then in effect in setting the scope
                   and timing of discovery. The Federal Rules of Evidence will
                   apply in total. The arbitrators

                                    -xxxvii-
<PAGE>

                   may enter a default decision against any Party who fails to
                   participate in the arbitration proceedings.

                   40. Arbitration Awards. The arbitrators will have the
                   authority to award compensatory damages only. Any award by
                   the arbitrators will be accompanied by a written opinion
                   setting forth the findings of fact and conclusions of law
                   relied upon in reaching the decision. The award rendered by
                   the arbitrators will be final, binding and non-appealable,
                   and judgment upon such award may be entered by any court of
                   competent jurisdiction. The Parties agree that the existence,
                   conduct and content of any arbitration will be kept
                   confidential and no Party will disclose to any person any
                   information about such arbitration, except as may be required
                   by law or by any governmental authority or for financial
                   reporting purposes in each Party's financial statements.

                   41. Fees. Each Party will pay the fees of its own attorneys,
                   expenses of witnesses and all other expenses and costs in
                   connection with the presentation of such Party's case
                   (collectively, "Attorneys' Fees"). The remaining costs of the
                   arbitration, including without limitation, fees of the
                   arbitrators, costs of records or transcripts and
                   administrative fees (collectively, "Arbitration Costs") will
                   be borneequally by the Parties. Notwithstanding the
                   foregoing, the arbitrators may modify the allocation of
                   Arbitration Costs and award Attorneys' Fees in those cases
                   where fairness dictates a different allocation of Arbitration
                   Costs between the Parties and an award of Attorneys' Fees to
                   the prevailing Party as determined by the arbitrators.

                   42. Non Arbitratable Disputes. Any Dispute that is not
                   subject to final resolution by the Management Committee or to
                   arbitration under this Part 10 or by law (collectively,
                   "Non-Arbitration Claims") will be brought in a court of
                   competent jurisdiction in the State of New York. Each Party
                   irrevocably consents to the exclusive jurisdiction of the
                   state courts of New York and the federal courts situated in
                   the State of New York, City of New York over any and all
                   Non-Arbitration Claims and any and all actions to enforce
                   such claims or to recover damages or other relief in
                   connection with such claims.

                                   -xxxviii-
<PAGE>

Part 11            43. Strategic Partnership Agreement to be entered into by AOL
Supplemental       and Netcentives, reflecting, inter alia, the terms of the
Agreements         strategic relationship described above. The parties may elect
                   to proceed with several shorter agreements (e.g., CLN
                   agreement, consulting agreement, etc.) that in the aggregate
                   reflect the entire strategic partnership, rather than one
                   long agreement as contemplated in the previous sentence.

                   44. Restricted Stock Purchase Agreement to be entered into by
                   AOL and Netcentives, reflecting, inter alia, the issuance of
                   the Common Stock to AOL and the granting to AOL each of the
                   rights set forth in Section 1 of this Exhibit A (including,
                   without limitation, ***

                   45. The Marketing Consulting Agreement to be entered into by
                   the Parties pursuant to Section 6 of this Exhibit A.

***CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

                                    -xxxix-
<PAGE>

                                    EXHIBIT B

                         Standard Online Commerce Terms

1.   AOL Network Distribution. Any promotions or advertisements purchased from
     or provided by AOL or ICQ will be used by Netcentives solely for its own
     benefit and will not be resold, traded, exchanged, bartered, brokered or
     otherwise offered to any third party.

2.   Provision of Other Content. In the event that AOL or any AOL affiliate
     notifies Netcentives that (i) as reasonably determined by AOL or such
     affiliate, any Content within the Affiliated Program Site violates AOL's
     then-standard Terms of Service (as set forth on the America Online(R)brand
     service at Keyword term "TOS"), for the AOL Service or any other AOL
     property through which the Affiliated Program Site is promoted, the terms
     of this Agreement or any other standard, written AOL policy or (ii) AOL
     reasonably objects to the inclusion of any Content within the Affiliated
     Program Site (other than any specific items of Content which may be
     expressly identified in this Agreement), then Netcentives will take
     commercially reasonable steps to block access by AOL Users to such Content
     using Netcentives' then-available technology. In the event that Netcentives
     cannot, through its commercially reasonable efforts, block access by AOL
     Users or ICQ Users to the Content in question, then Netcentives will
     provide AOL prompt written notice of such fact. AOL may then, at its
     option, restrict access from the AOL Network to the Content in question
     using technology available to AOL. Netcentives will cooperate with AOL's
     reasonable requests to the extent AOL elects to implement any such access
     restrictions.

3.   Contests. Netcentives will take all steps necessary to ensure that any
     contest, sweepstakes or similar promotion conducted or promoted by
     Netcentives (on its own or in conjunction with any third party) through the
     Affiliated Program Site (a "Contest") complies with all applicable federal,
     state and local laws and regulations.

4.   Navigation. Subject to the prior consent of Netcentives, which consent will
     not be unreasonably withheld, AOL will be entitled to establish
     navigational icons, links and pointers connecting the Affiliated Program
     Site (or portions thereof) with other content areas on or outside of the
     AOL Network. Additionally, in cases where an AOL User or ICQ User performs
     a search for ClickRewards through any search or navigational tool or
     mechanism that is accessible or available through the AOL Network (e.g.,
     Promotions, Keyword Search Terms, or any other promotions or navigational
     tools), AOL or ICQ (as the case may be) shall have the right to direct such
     AOL User to the Affiliated Program Site, or any other ClickRewards Network
     Interactive Site determined by AOL in its reasonable discretion.

5.   Disclaimers. Upon AOL's request, Netcentives agrees to include within the
     Affiliated Program Site a product disclaimer (the specific form and
     substance to be mutually agreed upon by the Parties) indicating that
     transactions are solely between the relevant merchant partner and AOL Users
     or ICQ Users (as the case may be).

6.   AOL Look and Feel. Netcentives acknowledges and agrees that AOL will own
     all right, title and interest in and to the elements of graphics, design,
     organization, presentation, layout, user interface, navigation and
     stylistic convention (including the digital implementations thereof) which
     are generally associated with online areas contained within the AOL
     Network, subject to Netcentives' ownership rights in any Netcentives
     trademarks or copyrighted material within the Affiliated Program Site.

7.   Management of the Affiliated Program Site. Netcentives will ensure that the
     Affiliated Program Site is current, accurate and well-organized at all
     times. Netcentives warrants that any (i) ClickRewards- or
     Netcentives-branded products and (ii) other Content provided by Netcentives
     or its affiliates in connection with the Affiliated Program Site
     (including, without limitation, any modifications, updates, enhancements or
     upgrades thereto) (collectively, "Licensed Content") : (i) will not
     infringe on or violate any copyright, trademark, patent or any other third
     party right, including without limitation, any music performance or other
     music-related rights; (ii) will not violate AOL's then-applicable Terms of
     Service for the AOL Service and any other AOL Property through which the
     Affiliated Program Site will be promoted or any other standard, written AOL
     policy; and (iii) will not violate any applicable law or regulation,
     including those relating to contests, sweepstakes or similar promotions.
     Netcentives shall not in any manner, including, without limitation in any
     Promotion, the Licensed Content or any promotional materials state or imply
     that AOL or any AOL affiliate
<PAGE>

     recommends or endorses Netcentives or Netcentives' Products (e.g., no
     statements that Netcentives is an "official" or "preferred" provider of
     products or services for AOL or its affiliates). AOL will have no
     obligations with respect to the products available on or through the
     Affiliated Program Site (other than AOL's or any AOL affiliate's own
     proprietary products and services offered by AOL or any of AOL's affiliates
     on the Affiliated Program Site), including, but not limited to, any duty to
     review or monitor any such products. AOL warrants that any Content provided
     by AOL or its affiliates on the AOL Rewards Program and/or any Customized
     AOL Rewards Program (including, without limitation, any modifications,
     updates, enhancements or upgrades thereto: (i) will not infringe on or
     violate any copyright, trademark, patent or any other third party right,
     including without limitation, any music performance or other music-related
     rights; (ii) will not violate AOL's then-applicable Terms of Service for
     the AOL Service and any other AOL Property through which the Affiliated
     Program Site will be promoted or any other standard, written AOL policy;
     and (iii) will not violate any applicable law or regulation, including
     those relating to contests, sweepstakes or similar promotions.

8.   Duty to Inform. Netcentives will promptly inform AOL of any information
     related to the Affiliated Program Site which could reasonably lead to a
     claim, demand, or liability of or against AOL and/or its affiliates by any
     third party.

9.   Customer Service. As between the Parties, it is the sole responsibility of
     Netcentives to provide customer service to persons or entities purchasing
     Products through the Affiliated Program Site ("Customers"). As between the
     Parties, Netcentives will bear full responsibility for all customer
     service, including without limitation, order processing, billing,
     fulfillment, shipment, collection and other customer service associated
     with any Products offered, sold or licensed through the Affiliated Program
     Site, and AOL will have no obligations whatsoever with respect thereto.
     Netcentives will generally respond to emails received from Customers , will
     handle all currency awards and redemption electronically and will generally
     process all such awards or redemption in accordance with the terms of the
     Supplemental Agreements. Netcentives will work with its merchant partners
     to ensure that all orders of Products are received, processed, fulfilled
     and delivered on a timely and professional basis. As between the Parties,
     Netcentives will bear all responsibility for compliance with federal, state
     and local laws in the event that products are out of stock or are no longer
     available at the time an order is received. Netcentives will also comply
     with the requirements of any federal, state or local consumer protection or
     disclosure law.

10.  Production Work. In the event that Netcentives requests AOL's production
     assistance in connection with (i) ongoing programming and maintenance
     related to the Affiliated Program Site, (ii) a redesign of or addition to
     the Affiliated Program Site (e.g., a change to an existing screen format or
     construction of a new custom form), (iii) production to modify work
     performed by a third party provider or (iv) any other type of production
     work, Netcentives will work with AOL to develop a detailed production plan
     for the requested production assistance (the "Production Plan"). Following
     receipt of the final Production Plan, AOL will notify of (i) AOL's
     availability to perform the requested production work, (ii) the proposed
     fee or fee structure for the requested production and maintenance work and
     (iii) the estimated development schedule for such work. To the extent the
     Parties reach agreement regarding implementation of the agreed-upon
     Production Plan, such agreement will be reflected in a separate work order
     signed by the Parties. To the extent Netcentives elects to retain a third
     party provider to perform any such production work, work produced by such
     third party provider must generally conform to AOL's standards & practices
     (as provided on the America Online brand service at Keyword term
     "styleguide"). The specific production resources which AOL allocates to any
     production work to be performed on behalf of Netcentives will be as
     determined by AOL in its sole discretion. With respect to any routine
     production, maintenance or related services which AOL reasonably determines
     are necessary (upon consultation with Netcentives) for AOL to perform in
     order to support the proper functioning and integration of the Affiliated
     Program Site ("Routine Services"), Netcentives will pay the then-standard
     fees charged by AOL for such Routine Services.

11.  Overhead Accounts. To the extent AOL has granted Netcentives any overhead
     accounts on the AOL Service, Netcentives will be responsible for the
     actions taken under or through its overhead accounts, which actions are
     subject to AOL's applicable Terms of Service and for any surcharges,
     including, without limitation, all premium charges, transaction charges,
     and any applicable communication surcharges incurred by any overhead
     Account issued to Netcentives, but Netcentives will not be liable for
     charges incurred by any overhead account relating to AOL's standard monthly
     usage fees and standard hourly charges, which charges AOL will bear. Upon
     the termination of this Agreement, all overhead accounts, related screen

                                       -2-
<PAGE>

     names and any associated usage credits or similar rights, will
     automatically terminate. AOL will have no liability for loss of any data or
     content related to the proper termination of any overhead account.

12.  Merchant Certification Program. Netcentives will use commercially
     reasonable efforts to encourage its merchant partners to participate in any
     generally applicable "Certified Merchant" program operated by AOL or its
     authorized agents or contractors. Such program may require merchant
     participants on an ongoing basis to meet certain reasonable, generally
     applicable standards relating to provision of electronic commerce through
     the AOL Network (including, as a minimum, use of 40-bit SSL encryption and
     if requested by AOL, 128-bit encryption) and may also require the payment
     of certain reasonable certification fees to the applicable entity operating
     the program. Each Certified Merchant in good standing will be entitled to
     place on its affiliated Interactive Site an AOL designed and approved
     button promoting the merchant's status as an AOL Certified Merchant.

13.  Search Terms. To the extent this Agreement sets forth any mechanism by
     which the Affiliated Program Site will be promoted in connection with
     specified search terms requested by Netcentives to be used within any AOL
     product or service, Netcentives hereby represents and warrants that
     Netcentives has all consents, authorizations, approvals, licenses, permits
     or other rights necessary for Netcentives to use such specified search
     terms. Notwithstanding the foregoing, AOL shall have the right to suspend
     the use of any search term if AOL has reason to believe continued use may
     subject AOL to liability or other adverse consequences.

14.  Content. For purposes of this Exhibit B and this Agreement, "Content" shall
     mean text, images, video, audio (including, without limitation, music used
     in synchronism or timed relation with visual displays) and other data,
     products, advertisements, promotions, URLs, links, pointers and software,
     including any modifications, upgrades, updates, enhancements and related
     documentation.

                                      -3-
<PAGE>

                                    EXHIBIT C

                    Other Standard Legal Terms and Conditions

     1.   Promotional Materials/Press Releases. Each Party will submit to the
          other Party, for its prior written approval, which will not be
          unreasonably withheld or delayed, any marketing, advertising, or other
          promotional materials, excluding Press Releases, related to the
          Affiliated Program Site and/or referencing the other Party and/or its
          trade names, trademarks, and service marks (the "Promotional
          Materials"); provided, however, that either Party's use of screen
          shots of the Affiliated Program Site for promotional purposes shall be
          subject to the mutual agreement of the Parties; and provided, further,
          however, that, following the initial public announcement of the
          business relationship between the Parties in accordance with the
          approval and other requirements contained herein, either Party's
          subsequent factual reference to the existence of a business
          relationship between the Parties in Promotional Materials, will not
          require the approval of the other Party. Each Party will solicit and
          reasonably consider the views of the other Party in designing and
          implementing such Promotional Materials. Once approved, the
          Promotional Materials may be used by a Party and its affiliates for
          the purpose of promoting the Affiliated Program Site and the content
          contained therein and reused for such purpose until such approval is
          withdrawn with reasonable prior notice. In the event such approval is
          withdrawn, existing inventories of Promotional Materials may be
          depleted.

     2.   License. Netcentives hereby grants AOL a non-exclusive worldwide
          license to (a) market, distribute and promote the Click Rewards
          currency and (b) to market, license, distribute, reproduce, display,
          perform, transmit and promote any other Licensed Content, as defined
          in Exhibit B through such areas or features of the AOL Network as AOL
          deems appropriate. Netcentives acknowledges and agrees that the
          foregoing license permits AOL to distribute portions of the Licensed
          Content in synchronism or timed relation with visual displays prepared
          by Netcentives or AOL (e.g., as part of an AOL "slideshow"). In
          addition, AOL Users will have the right to access and use the
          Affiliated Program Site.

     3.   Trademark License. In designing and implementing any promotional
          materials and subject to the other provisions contained herein,
          Netcentives will be entitled to use the following trade names,
          trademarks, and service marks of AOL: the "America Online(R)" brand
          service, "AOL(TM)" service/software and AOL's triangle logo; and
          "ICQ(TM)", and AOL and its affiliates will be entitled to use the
          trade names, trademarks, and service marks of Netcentives for which
          Netcentives holds all rights necessary for use in connection with this
          Agreement (collectively, together with the AOL marks listed above, the
          "Marks"); provided that each Party: (i) does not create a unitary
          composite mark involving a Mark of the other Party without the prior
          written approval of such other Party; and (ii) displays symbols and
          notices clearly and sufficiently indicating the trademark status and
          ownership of the other Party's Marks in accordance with applicable
          trademark law and practice.

     4.   Ownership of Trademarks. Each Party acknowledges the ownership right
          of the other Party in the Marks of the other Party and agrees that all
          use of the other Party's Marks will inure to the benefit, and be on
          behalf, of the other Party. Each Party acknowledges that its
          utilization of the other Party's Marks will not create in it, nor will
          it represent it has, any right, title, or interest in or to such Marks
          other than the licenses expressly granted herein. Each Party agrees
          not to do anything contesting or impairing the trademark rights of the
          other Party.

     5.   Quality Standards. Each Party agrees that the nature and quality of
          its products and services supplied in connection with the other
          Party's Marks will conform to quality standards set by the other
          Party. Each Party agrees to supply the other Party, upon request, with
          a reasonable number of samples of any Materials publicly disseminated
          by such Party which utilize the other Party's Marks. Each Party will
          comply with all applicable laws, regulations, and customs and obtain
          any required government approvals pertaining to use of the other
          Party's marks.

     6.   Infringement Proceedings. Each Party agrees to promptly notify the
          other Party of any unauthorized use of the other Party's Marks of
          which it has actual knowledge. Each Party will have the sole right and
          discretion to bring proceedings alleging infringement of its Marks or
          unfair competition related thereto; provided, however, that each Party
          agrees to provide the other Party with its reasonable cooperation and
          assistance with respect to any such infringement proceedings.

     7.   Additional Restrictions Regarding Confidential Information. Each Party
          acknowledges that Confidential Information may be disclosed to the
          other Party during the course of this Agreement. Each Party agrees
          that it will take reasonable steps, at least substantially equivalent
          to the steps it takes to protect its own proprietary information,

                                      -ii-
<PAGE>

     during the term of this Agreement, and for a period of two years
     following expiration or termination of this Agreement, to prevent the
     duplication or disclosure of Confidential Information of the other Party,
     other than by or to its employees or agents who must have access to such
     Confidential Information to perform such Party's obligations hereunder,
     who will each agree to comply with this section. Notwithstanding the
     foregoing, either Party may issue a press release or other disclosure
     containing Confidential Information without the consent of the other
     Party, to the extent such disclosure is required by law, rule, regulation
     or government or court order. In such event, the disclosing Party will
     provide at least five (5) business days prior written notice of such
     proposed disclosure to the other Party. Further, in the event such
     disclosure is required of either Party under the laws, rules or
     regulations of the Securities and Exchange Commission or any other
     applicable governing body, such Party will (i) redact mutually agreed-
     upon portions of this Agreement to the fullest extent permitted under
     applicable laws, rules and regulations and (ii) submit a request to such
     governing body that such portions and other provisions of this Agreement
     receive confidential treatment under the laws, rules and regulations of
     the Securities and Exchange Commission or otherwise be held in the
     strictest confidence to the fullest extent permitted under the laws,
     rules or regulations of any other applicable governing body.

8.   Limitation of Liability; Disclaimer; Indemnification.

     8.1  Liability. UNDER NO CIRCUMSTANCES WILL EITHER PARTY BE LIABLE TO THE
          OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR
          EXEMPLARY DAMAGES (EVEN IF THAT PARTY HAS BEEN ADVISED OF THE
          POSSIBILITY OF SUCH DAMAGES), ARISING FROM BREACH OF THE AGREEMENT,
          THE SALE OF PRODUCTS AND SERVICES (INCLUDING, BUT NOT LIMITED TO, THE
          MARKETING CONSULTING SERVICES), THE LOYALTY NETWORK INFRASTRUCTURE,
          THE USE OR INABILITY TO USE THE AOL NETWORK, THE AOL SERVICE, AOL.COM
          OR THE AFFILIATED PROGRAM SITE, THE ICQ CLICKREWARDS PROGRAM, ANY
          CUSTOMIZED CLICK REWARDS PROGRAM, ANY CUSTOMIZED AOL REWARDS PROGRAM,
          THE AOL REWARDS PROGRAM,OR ARISING FROM ANY OTHER PROVISION OF THIS
          AGREEMENT, SUCH AS, BUT NOT LIMITED TO, LOSS OF REVENUE OR ANTICIPATED
          PROFITS OR LOST BUSINESS (COLLECTIVELY, "DISCLAIMED DAMAGES");
          PROVIDED THAT EACH PARTY WILL REMAIN LIABLE TO THE OTHER PARTY TO THE
          EXTENT ANY DISCLAIMED DAMAGES ARE CLAIMED BY A THIRD PARTY AND ARE
          SUBJECT TO INDEMNIFICATION PURSUANT TO SECTION 8.3. EXCEPT AS PROVIDED
          IN SECTION 8.3, (I) LIABILITY ARISING UNDER THIS AGREEMENT WILL BE
          LIMITED TO DIRECT, OBJECTIVELY MEASURABLE DAMAGES, AND (II) THE
          MAXIMUM LIABILITY OF ONE PARTY TO THE OTHER PARTY FOR ANY CLAIMS
          ARISING IN CONNECTION WITH THIS AGREEMENT WILL NOT EXCEED *** (EXCEPT
          WITH RESPECT TO THE NON-DELIVERY OF THE COMMON STOCK AND/OR THE
          FAILURE TO SIGN THE STOCK PURCHASE AGREEMENT, IN WHICH CASE ANY
          LIABILITY IN CONNECTION WITH ANY SUCH FAILURE SHALL BE LIMITED TO THE
          FAIR MARKET VALUE OF THE COMMON STOCK TO BE DELIVERED TO AOL BY
          NETCENTIVES HEREUNDER); PROVIDED THAT EACH PARTY WILL REMAIN LIABLE
          FOR THE AGGREGATE AMOUNT OF ANY PAYMENT OBLIGATIONS OWED TO THE OTHER
          PARTY PURSUANT TO THE AGREEMENT.

     8.2  No Additional Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THIS
          AGREEMENT, NEITHER PARTY MAKES ANY, AND EACH PARTY HEREBY SPECIFICALLY
          DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED,
          REGARDING THE AOL NETWORK, THE AOL SERVICE, AOL.COM, THE ICQ
          CLICKREWARDS PROGRAM, ANY CUSTOMIZED CLICK REWARDS PROGRAM, ANY
          CUSTOMIZED AOL REWARDS PROGRAM, THE AOL REWARDS PROGRAM, THE SALE OF
          PRODUCTS AND SERVICES (INCLUDING, WITHOUT LIMITATION, THE MARKETING
          CONSULTING SERVICES), THE LOYALTY NETWORK INFRASTRUCTURE, OR ANY
          AFFILIATED PROGRAM SITE, INCLUDING ANY IMPLIED WARRANTY OF
          MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND IMPLIED
          WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE.
          WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, AOL SPECIFICALLY
          DISCLAIMS ANY WARRANTY REGARDING THE PROFITABILITY OF THE AFFILIATED
          PROGRAM SITE.

     8.3  Indemnity. Either Party will defend, indemnify, save and hold harmless
          the other Party and the officers, directors, agents, affiliates,
          distributors, franchisees and employees of the other Party from any
          and all third party claims, demands, liabilities, costs or expenses,
          including reasonable attorneys' fees ("Liabilities"), resulting from
          the indemnifying Party's material breach of any duty, representation,
          or warranty of this Agreement.

     8.4  Claims. If a Party entitled to indemnification hereunder (the
          "Indemnified Party") becomes aware of any

     [***]=    CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
               SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
               REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                      -2-
<PAGE>

          matter it believes is indemnifiable hereunder involving any
          claim, action, suit, investigation, arbitration or other proceeding
          against the Indemnified Party by any third party (each an "Action"),
          the Indemnified Party will give the other Party (the "Indemnifying
          Party") prompt written notice of such Action. Such notice will (i)
          provide the basis on which indemnification is being asserted and (ii)
          be accompanied by copies of all relevant pleadings, demands, and other
          papers related to the Action and in the possession of the Indemnified
          Party. The Indemnifying Party will have a period of ten (10) days
          after delivery of such notice to respond. If the Indemnifying Party
          elects to defend the Action or does not respond within the requisite
          ten (10) day period, the Indemnifying Party will be obligated to
          defend the Action, at its own expense, and by counsel reasonably
          satisfactory to the Indemnified Party. The Indemnified Party will
          cooperate, at the expense of the Indemnifying Party, with the
          Indemnifying Party and its counsel in the defense and the Indemnified
          Party will have the right to participate fully, at its own expense, in
          the defense of such Action. If the Indemnifying Party responds within
          the required ten (10) day period and elects not to defend such Action,
          the Indemnified Party will be free, without prejudice to any of the
          Indemnified Party's rights hereunder, to compromise or defend (and
          control the defense of) such Action. In such case, the Indemnifying
          Party will cooperate, at its own expense, with the Indemnified Party
          and its counsel in the defense against such Action and the
          Indemnifying Party will have the right to participate fully, at its
          own expense, in the defense of such Action. Any compromise or
          settlement of an Action will require the prior written consent of both
          Parties hereunder, such consent not to be unreasonably withheld or
          delayed.

9.   Acknowledgment. AOL and Netcentives each acknowledges that the provisions
     of this Agreement were negotiated to reflect an informed, voluntary
     allocation between them of all risks (both known and unknown) associated
     with the transactions contemplated hereunder. The limitations and
     disclaimers related to warranties and liability contained in this Agreement
     are intended to limit the circumstances and extent of liability. The
     provisions of this Section 9 will be enforceable independent of and
     severable from any other enforceable or unenforceable provision of this
     Agreement.

10.  Excuse. Neither Party will be liable for, or be considered in breach of or
     default under this Agreement on account of, any delay or failure to perform
     as required by this Agreement as a result of any causes or conditions which
     are beyond such Party's reasonable control and which such Party is unable
     to overcome by the exercise of reasonable diligence.

11.  Independent Contractors. The Parties to this Agreement are independent
     contractors. Neither Party is an agent, representative or employee of the
     other Party. Neither Party will have any right, power or authority to enter
     into any agreement for or on behalf of, or incur any obligation or
     liability of, or to otherwise bind, the other Party. This Agreement will
     not be interpreted or construed to create an association, agency, joint
     venture or partnership between the Parties or to impose any liability
     attributable to such a relationship upon either Party.

12.  Notice. Any notice, approval, request, authorization, direction or other
     communication under this Agreement will be given in writing and will be
     deemed to have been delivered and given for all purposes (i) on the
     delivery date if delivered by electronic mail on the AOL Network (to
     screenname "AOLNotice@AOL.com" in the case of AOL) or by confirmed
     facsimile; (ii) on the delivery date if delivered personally to the Party
     to whom the same is directed; (iii) one business day after deposit with a
     commercial overnight carrier, with written verification of receipt; or (iv)
     five business days after the mailing date, whether or not actually
     received, if sent by U.S. mail, return receipt requested, postage and
     charges prepaid, or any other means of rapid mail delivery for which a
     receipt is available. In the case of AOL, such notice will be provided to
     both the Senior Vice President for Business Affairs (fax no. 703-265-1206)
     and the Deputy General Counsel (fax no. 703-265-1105), each at the address
     of AOL set forth in the first paragraph of this Agreement. In the case of
     Netcentives, such notice will be provided to the Executive Vice President,
     Management and Development (fax no. 415-538-1889).

13.  Return of Information. Upon the expiration or termination of this
     Agreement, each Party will, upon the written request of the other Party,
     return or destroy (at the option of the Party receiving the request) all
     confidential information, documents, manuals and other materials specified
     the other Party.

1.   Amendment. No change, amendment or modification of any provision of this
     Agreement will be valid unless set forth in a written instrument signed by
     the Party subject to enforcement of such amendment, and in the case of AOL,
     by an executive of at least the same standing to the executive who signed
     the Agreement.

2.   Further Assurances. Each Party will take such action (including, but not
     limited to, the execution, acknowledgment and delivery of documents) as may
     reasonably be requested by any other Party for the implementation or
     continuing performance of this Agreement.

                                      -3-
<PAGE>

3.   Assignment. Each of the Parties agrees that its rights and obligations
     under this Agreement may not be transferred or assigned directly or
     indirectly without the prior written consent of the other Party, and any
     such assignment made without such consent shall be void. Notwithstanding
     the foregoing, no consent shall be required for an assignment of this
     Agreement pursuant to a merger or sale of substantially all of the assets,
     or sale of all of the outstanding stock of either Party. This Agreement
     shall be binding upon and inure to the benefit of the Parties and their
     respective successors and assigns.

4.   Construction; Severability. In the event that any provision of this
     Agreement conflicts with the law under which this Agreement is to be
     construed or if any such provision is held invalid by a court with
     jurisdiction over the Parties to this Agreement, (i) such provision will be
     deemed to be restated to reflect as nearly as possible the original
     intentions of the Parties in accordance with applicable law, and (ii) the
     remaining terms, provisions, covenants and restrictions of this Agreement
     will remain in full force and effect.

5.   Remedies. Except where otherwise specified, the rights and remedies granted
     to a Party under this Agreement are cumulative and in addition to, and not
     in lieu of, any other rights or remedies which the Party may possess at law
     or in equity; provided that, in connection with any dispute hereunder,
     neither Party will be entitled to offset any amounts that it claims to be
     due and payable from the other Party against amounts otherwise payable by
     such Party to the other Party.

6.   Export Controls. Both Parties will adhere to all applicable laws,
     regulations and rules relating to the export of technical data and will not
     export or re-export any technical data, any products received from the
     other Party or the direct product of such technical data to any proscribed
     country listed in such applicable laws, regulations and rules unless
     properly authorized.

7.   Headings. The captions and headings used in this Agreement are inserted for
     convenience only and will not affect the meaning or interpretation of this
     Agreement.

                                      -4-<PAGE>

                                                                   Exhibit 10.13

[LOGO]

PROFILE TO OEM DISTRIBUTION AGREEMENT

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

This profile covers the details of your authorization to market IBM Product(s)
with Your Product(s) to your Distributors and End Users. Please let us know if
you have any questions or problems with our IBM Product(s).

By signing below, each of us agrees to the terms of the following (collectively
called the "Agreement"):

     1.  Profile
     2.  OEM Distribution Agreement
     3.  Applicable Attachments and Exhibits referred to in the OEM Distribution
         Agreement

This Agreement is the complete agreement regarding this relationship, and
replaces any prior oral or written communications between us. Once this
Agreement is signed, 1) any reproduction of this Agreement made by reliable
means (for example, photocopy or facsimile) is considered an original and 2) all
IBM Product(s) you order and services you perform under this Agreement are
subject to it.

<TABLE>

<S>                                                   <C>
Effective Date (last date signed):                    Duration:    Two (2) Years

Agreed to:                                            Agreed to:

Crossroads Software Inc.                              International Business Machines Corporation

By:      /s/ Scott Martin                             By:    /s/ Stephen Jones
   ---------------------------------------------         -----------------------------------------
             (authorized signature)                                (authorized signature)

Name:           Scott A. Martin                       Name:    Stephen E. Jones
     -------------------------------------------
                (type or print)

Title:   Senior VP, Sales, Services, Bus. Dev.        Title:   Contract Administrator
      ------------------------------------------

Date:    7/10/97                                      Date:    7/11/97
     -------------------------------------------           ---------------------------------------

OEM address:                                          IBM address:

Crossroads Software Inc                               International Business Machines Corporation
577 Airport Blvd., Ste 800                            11400 Burnet Road
Burlingame, CA 94010                                  Austin TX, 78758
                                                      Attn: OEM Software Contracts
                                                            Internal Zip 1725

NOTIFICATION ADDRESS:

OEM:                                                  IBM:

Crossroads Software Inc                               IBM Corporation
577 Airport Blvd., Ste 800                            11400 Burnet Road
Burlingame, CA 94010                                  Austin TX, 78758
Attn: Beth Dabagian                                   Attn: Austin Site Counsel
                                                            Internal Zip 9425

CUSTOMER NUMBER:                                     AGREEMENT NUMBER: AUS970272
</TABLE>

                                    Page 1
<PAGE>

                                  YOUR PRODUCTS
                                  -------------

Description of Your Product(s)
------------------------------

         Crossroads Interchange Server and Crossroads Connectors

1. Your Designated Ship to Locations:

         Crossroads Software Inc
         577 Airport Blvd., Ste 800
         Burlingame, CA 94010

                                    Page 2
<PAGE>

[LOGO]

OEM Distribution Agreement (Software Systems)

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

1.0   DEFINITIONS

      1.1   "Code" is a computer instruction in object code format.

      1.2   "Designated Locations" are any of your locations to which we ship
            IBM Product(s).

      1.3   "Distributors" are any business entities you use to distribute Your
            Product(s).

      1.4   "End User" is a party unaffiliated with you and who acquires IBM
            Product(s) from you for internal use, and not for redistribution.

      1.5   "IBM Product(s)" is the IBM Software Product(s) listed in the
            attached Exhibits.

      1.6   "Level 1 Service" shall mean the service provided in response to the
            initial phone call placed by an End User which identifies and
            documents an error in the IBM Product(s). This includes problem
            source identification assistance, problem analysis, problem
            resolution, installation planning information and preventive and
            corrective service information.

      1.7   "Level 2 Service" shall mean the service provided to analyze or
            reproduce the error or to determine that the error is not
            reproducible. This includes problem recreation and in-depth
            technical analysis.

      1.8   "Level 3 Service" is the service provided to the OEM that isolates
            the error to a component level of the IBM Product(s). A reasonable
            commercial effort is to be made to provide an error correction or
            circumvention or notification that no correction or circumvention is
            available.

      1.9   "Proof of Entitlement" is the confirmation from us to the End User
            of the levels of authorized use of the Product by the End User.

      1.10  "Restricted License" is a license to you, your Distributors and
            End-Users which prohibits the use of the IBM Product(s) except when
            used in conjunction with Your Product(s). The Exhibit will specify
            the IBM Product(s) for which a Restricted License applies.

      1.11  "Your Product(s)" is the software product described in the Profile
            which you market and distribute under your trademark(s) or service
            mark(s).

2.0   OUR RESPONSIBILITIES

      We agree to:

      2.1   provide you golden master copies for the IBM Product(s) listed in
            the Exhibit. We may make new releases of the IBM Product(s)
            available to you. Prices, terms and conditions for such new releases
            may vary.

      2.2   provide Level 3 Service during the time that such service is
            available to all other IBM customers of the IBM Product(s). Upon our
            request, you will provide a reasonable quantity of Your Product(s)
            to us at no charge in order to provide this service.

3.0   OUR MUTUAL REPRESENTATIONS

      3.1   IBM represents and warrants that they have the right to grant the
            license rights herein.

      Each of us agrees:

      3.2   that each of us is an independent contractor and neither of us is a
            legal representative or agent of the other.

      3.3   that each of us may independently develop or acquire materials which
            are competitive with each others product(s) or make similar
            arrangements with other parties. Each of us is free to establish our
            own prices and to enter into similar agreements with other parties.

      3.4   that failure by either of us to insist on strict performance or to
            exercise a right when entitled, does not prevent us from doing so at
            a later time, either in relation to that default or any subsequent
            one.

4.0   YOUR RESPONSIBILITIES

      You agree to:

      4.1   distribute the IBM Product(s) with an International Program License
            Agreement ("IPLA") containing terms legally sufficient to:

            i)    prohibit further copying and or transfer of the IBM Product(s)
                  by the End User; and

            ii)   prohibit reverse assembly, reverse compilation, or other
                  translation of an IBM Product(s); and

            iii)  notify the End User that the IBM Product(s) is copyrighted and
                  licensed (not sold) and that title to the IBM Product(s) is
                  not transferred; and

            iv)   notify the End User that the owner of the IBM Product(s),
                  "DISCLAIMS ALL WARRANTIES WITH RESPECT TO THE USE OF THE IBM
                  PRODUCT(S) INCLUDING (WITHOUT LIMITATION) ANY WARRANTIES OF
                  MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE;" and

            v)    notify the End User that the owner of the IBM Product(s)
                  liability is limited to the

                                    Page 1
<PAGE>

                  amount paid by the End User for the IBM Product(s); and

            vi)   when a Restricted License applies, prohibit the use of the IBM
                  Product(s) except when used in conjunction with Your
                  Product(s).

      4.2   provide Level 1 and Level 2 Service.

      4.3   make the greater of 7 or one-percent (1%) of your annual forecast as
            no charge copies of the IBM Product(s) to be used solely for
            demonstration purposes which must be so labeled. Additionally, we
            will specify in the Profile if you are authorized to make any other
            no charge copies for any other purposes. You agree not to make any
            unauthorized copies.

      4.4   return the golden master or copies to us when this Agreement ends.

      4.5   (1) have an agreement in place with each Distributor which will
            permit you to comply with your obligations under this Agreement, and
            (2) ensure that such Agreement is consistent with the terms of this
            Agreement.

      4.6   integrate IBM Product(s) only with Your Product(s) that are of
            comparable or higher value, and upon our written request, make
            available to us for our inspection and approval one copy of Your
            Product(s) and print materials which use the name of the IBM
            Product(s), both in finished form.

      4.7   retain records for each of the transactions for three (3) years.
            Records must include the number of IBM Product(s) sold, name of IBM
            Product(s), and model numbers thereof, sold and/or returned,
            including if IBM requests such information, your End Users reference
            number. You agree to provide a mutually agreed to representative
            with sufficient free and safe access to your facilities at a
            mutually convenient time for us to audit these records. We may
            conduct surveys of your Distributors with regard to our relationship
            under this Agreement. Audits shall be limited to only one per
            calendar year at IBM's expense.

      4.8   not assign your rights or delegate your obligations under this
            Agreement to any third party without our written consent except in
            connection with the sale of your business. Any attempt to do so is
            void.

      4.9   not make representations about the IBM Product(s) except as
            authorized by us in writing.

5.0   LICENSES (IBM TO YOU) AND YOUR OBLIGATIONS

      5.1   We give you a non-transferable license to replicate and distribute
            to End Users or your Distributors copies of the IBM Product(s) on
            Your Product(s). You are not authorized to distribute the IBM
            Product(s) alone. When a Restricted License applies, End Users may
            only use the IBM Product(s) in conjunction with Your Product(s). You
            shall not reverse assemble, reverse compile, sublicense, rent, lease
            or assign the IBM Product(s), or any copy thereof.

      5.2   We do not grant you rights to any derivative work with respect to
            IBM Product(s) or any other item we supply to you.

      5.3   You may provide one back-up copy of the IBM Product(s) with Your
            Product(s). This copy must be identified as the back-up copy allowed
            under the applicable license agreement.

6.0   INFORMATION EXCHANGE

      6.1   We mutually agree that all information exchanged between us is
            non-confidential, if either of us requires the exchange of
            confidential information it will be made under a signed
            confidentiality agreement.

7.0   CHANGES TO THIS AGREEMENT

      7.1   We may change prices for IBM Products by issuing a Revised Exhibit.
            We will give you sixty (60) days prior notice of any price increase.
            For all other changes to be valid, both of us must sign a written
            amendment.

8.0   FINANCIAL TERMS

      8.1   We will specify the charges and any minimum order requirements
            associated with the IBM Product(s) in the Exhibits and you shall pay
            in accordance to the terms and conditions of these attached
            Exhibits.

      8.2.  You shall provide IBM with an initial payment in accordance with the
            Exhibit for each IBM Product(s) that you distribute. This payment
            must be made before any IBM Product(s) are distributed. When the
            quantity associated with the initial order is exhausted, you may
            order additional IBM Product(s), subject to the minimum order
            quantity specified in the Exhibit, by submitting a purchase order to
            the address listed below.

            International Business Machines Corporation

                           Branch Office JWQ
                           Accounts Receivable
                           Internal Zip 306
                           150 Kettletown Road
                           Southbury, CT 06488

            You are responsible to ensure that sufficient quantities of the IBM
            Product(s) have been ordered to cover shipments of Your Product(s).
            You agree to provide IBM, upon written request, documentation
            detailing the quantity of IBM Product(s) distributed externally or
            installed internally during the term of this Agreement.

            Each such accounting shall include a statement summarizing for each
            country in which you or your authorized Distributors are authorized
            to sell the

                                    Page 2
<PAGE>

            IBM Product(s), the following: (i) the number of copies of the IBM
            Product(s) distributed externally or installed internally; (ii)
            total revenue for such IBM Product(s) so placed; and (iii) an
            explanation of how the payment was calculated.

      8.3   If your account becomes delinquent, (more than 45 days past due) we
            may revoke your license to copy or distribute IBM Product(s) until
            your account is current. You shall pay IBM's attorneys fees (both in
            house and outside) incurred in connection with collecting sums past
            due.

      8.4   You agree to: (1) provide us with valid reseller exemption
            documentation for each applicable taxing jurisdiction, otherwise we
            will charge you all applicable state and local taxes and duties and
            (2) notify, us promptly if this documentation is revoked or
            modified. You are liable for any claims or assessments resulting
            from any taxing jurisdiction in which your exemption is not
            recognized.

9.0   WARRANTY

      9.1   THE IBM PRODUCT(S) WE PROVIDE TO YOU PURSUANT TO THIS AGREEMENT ARE
            PROVIDED ON AN "AS IS" BASIS WITHOUT WARRANTY OF ANY KIND, EXPRESS
            OR IMPLIED, INCLUDING BUT NOT LIMITED TO, WARRANTY OF
            MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

10.0  LIMITATION OF LIABILITY

      10.1  EXCEPT FOR CLAIMS ARISING OUT OF SECTION 11.0, NEITHER PARTY IS
            LIABLE FOR ANY LOST REVENUE, LOST PROFITS, OR OTHER CONSEQUENTIAL,
            INCIDENTAL, OR PUNITIVE DAMAGES EVEN IF ADVISED IN ADVANCE OF THE
            POSSIBILITY OF SUCH DAMAGES

      10.2  Except for claims arising out of Section 11.2, our entire liability
            for claims in any way related to this Agreement shall be limited to
            the greater of the monies paid by you to us under this Agreement
            which caused the damage or one hundred thousand dollars ($100,000).
            This limitation is cumulative. The sum of multiple claims may not
            exceed this limit (excluding obligations under Section 11.0).

      10.3  The existence of multiple claims will not enlarge or extend this
            limitation. You agree to release us from all obligations, liability,
            claims, or demands in excess of the limitation.

11.0  PATENTS, COPYRIGHTS AND INDEMNIFICATIONS

      11.1  You agree, at your expense, to defend us against any claim against
            us based on your representations, omissions, or actions relating to
            this Agreement, Your Product(s) or your Code. You agree to pay all
            costs, damages and reasonable attorney's fees that a court finally
            awards as a result of such claim. To qualify for such defense and
            payment, we agree to 1) give you prompt written notice of any such
            claim and 2) allow you to control and fully cooperate with you in
            the defense of such claims and all related settlement negotiations.

      11.2  If a third party claims that an IBM Product we provide to you
            infringes that party's patent or copyright, we will defend you
            against that claim at our expense and pay all costs, damages, and
            attorney's fees that a court finally awards, provided that you:

            1.    promptly notify us in writing of the claim; and

            2.    allow us to control, and cooperate with us in, the defense and
            any related settlement negotiations.

            If such a claim is made or appears likely to be made, you agree to
            permit us to enable you to continue to use the IBM Product, or to
            modify it, or replace it with one that is at least functionally
            equivalent. If we determine that none of these alternatives is
            reasonably available, you agree to return the IBM Product to us on
            our written request. We will then give you a credit equal to the
            amount you paid us for the product, provided you have followed
            generally-accepted accounting principles.

            This is our entire obligation to you regarding any claim of
            infringement.

            Claims for which we are NOT Responsible

            We have no obligation regarding any claim based on any of the
            following:

            1.    anything you provide which is incorporated into an IBM
            Product;

            2.    your modification of an IBM Product, or a Program's use in
            other than its Specified Operating Environment;

            3.    the combination, operation, or use of a Product with other
            Products not provided by us as a system, or the combination,
            operation, or use of an IBM Product with any product, data, or
            apparatus that we did not provide; or

            4.    infringement by a non-IBM Product alone, as opposed to its
            combination with an IBM Product(s) we provide to you as a system.

      11.3  Title to our copyrights, patents, and any other intellectual
            property rights in the Code and IBM Product(s) documentation remain
            with us. Title to your copyrights, patents, and any other
            intellectual property rights in Your Products and documentation
            remain with you.

                                    Page 3
<PAGE>

12.0  TRADEMARKS, TRADE NAMES AND SERVICE MARKS

      12.1  This Agreement does not grant you any rights in any of IBM's
            trademarks, trade names or service marks. However, you may assert
            that Your Product(s) include the IBM Product(s).

13.0  TERMINATION

      13.1  Except as otherwise provided herein, either of us may terminate this
            Agreement for cause, if the cause has not been cured within thirty
            (30) days following written notice to the other party, and either
            party may terminate this Agreement without cause upon three months
            written notice.

      13.2  Upon termination of this Agreement you agree to immediately pay us
            all amounts due.

      13.3  The rights and obligations of this Agreement, expressively
            identified as Section 1,3,6,9,10,11,12,13,14, survive term in this
            Agreement and apply to respective successors and assignees.

14.0  GENERAL

      14.1  You shall have sole responsibility for the payment of all taxes and
            duties imposed by any governmental entity, and shall, at your own
            expense, comply with any governmental law, statute, ordinance,
            administrative order, rule or regulation relating to your duties
            under this Agreement and shall procure all licenses and approvals
            and pay all fees and other charges required by law thereby, as they
            pertain to your duties, obligations and performance under this
            Agreement. You are responsible to bear any personal property taxes
            assessable on the Products on or after delivery to the carrier at
            our ship-from location.

      14.2  You agree to comply with all of the export laws. You shall not, nor
            shall you authorize or permit your employees, agents or
            subcontractors to export or re-export any IBM information or
            materials to any country specified as a prohibited destination in
            applicable federal, state and local laws, regulations and
            ordinances, including the Regulations of the U.S. Department of
            Commerce and/or the U.S. State Department, without first obtaining
            any requisite U.S. government approval. For your information,
            current prohibited countries include Cuba, Iraq, Iran, Libya, North
            Korea, Yugoslavia, (Serbia, Montenegro).

      14.3  We may assign our rights or delegate our responsibilities under this
            Agreement.

      14.4  Any notice required or permitted to be given pursuant to this
            Agreement shall be considered given on the date of mailing if sent
            to the receiving party by first class mail, postage prepaid or
            facsimile, and addressed to the addresses set forth in the Profile.

      14.5  The laws of the State of New York and the Copyright and Patent Law
            of the United States of America govern this Agreement. Neither of us
            will bring a legal action against the other more than two years
            after the cause of action arose.

      14.6  The parties acknowledge that they have read this Agreement,
            understand it, and agree to be bound by its terms and conditions.

                                    Page 4
<PAGE>

                                   EXHIBIT TO
                         THE OEM DISTRIBUTION AGREEMENT
                                FOR IBM PRODUCTS
                                     PROFILE

                    MQSERIES VERSION 5 - RESTRICTED LICENSES
                    ----------------------------------------

SERVICE PROVIDED BY: CrossWorlds Software               EFFECTIVE DATE: 3-27-98
--------------------

This exhibit authorizes you to distribute this Products worldwide, with the
exception of the countries or geographic areas identified in the OEM
Distribution Agreement.

<TABLE>
<CAPTION>
                                                                                  SRP PRICE
PART #            DESCRIPTION                                                     IN U.S. DOLLARS
------            -----------                                                     ---------------
<S>               <C>                                                             <C>
04L2948           MQSeries V5 Capacity Unit for OS/2 Windows NT, HP UX, AIX            [*]
                                                        and Sun Solaris

THE FOLLOWING PRODUCTS ARE AVAILABLE FOR USE ONLY IN THE UNITED STATES
----------------------------------------------------------------------
04L2949           MQSeries V5 Capacity Unit Upgrade Protection with 5x9 Support        [*]
                  [*]

04L2950           MQSeries V5 Capacity Unit Upgrade Protection with 7x24 Support       [*]
                  [*]

THE FOLLOWING IS AVAILABLE ONLY OUTSIDE THE UNITED STATES
---------------------------------------------------------
04L2537           MQSeries V5 Capacity Unit Upgrade Protection                         [*]
                  [*]
</TABLE>

* Certain confidential information on this page has been omitted and filed
  separately with the Securities and Exchange Commission.
<PAGE>

                                   EXHIBIT TO
                         THE OEM DISTRIBUTION AGREEMENT
                                FOR IBM PRODUCTS
                                     PROFILE

                    MQSERIES VERSION 5 - RESTRICTED LICENSES
                    ----------------------------------------

SERVICES PROVIDED BY: CrossWorlds Software              EFFECTIVE DATE: 3-27-98
---------------------

TERMS AND CONDITIONS:
---------------------
-  Initial order will be [*] of [*] commitment volume.
-  Minimum subsequent order is [*],
-  Initial charges will be based upon a projection of [*] at a discount of [*]
   within the first year of the Agreement.
-  This Exhibit is an update to the 7/11/97 Exhibit for MQSeries V2.0, part
   number 30F6764, and upgrade Protection part number 30F6782. Initial order and
   minimum charges requirement have been fulfilled.
-  Upon completion of the first year of this agreement, both parties will
   promptly reconcile total payments based on the actual 12 month order volume.
   Any amount overpaid by you shall be credited to your account and we will
   invoice you for any amount underpaid.
-  The license granted to you is a "Restricted License" for the products listed
   above which means the products listed above can only be used in conjunction
   with your product "CrossWorlds Interchange Server and CrossWorlds
   Connectors".
-  The quantity of Capacity Units which must be purchased for each system is as
   follows: For Intel, OEM must purchase 2 capacity units for each Intel
   license. For Unix, OEM must purchase capacity units for each Unix license.
-  Capacity Unit Upgrade Protection with Support and Capacity Unit Upgrade
   Protection for a 2 year period and must be paid in advance for each capacity
   unit for each year in effect starting
-  Capacity Unit Upgrade Protection with Support and Capacity Unit Upgrade
   Protection must be purchased for all Capacity Units at an end user customer's
   enterprise.
-  Price changes do not affect licenses upgraded with Capacity Unit Upgrade
   Protection with Support and Capacity Unit Upgrade Protection.
-  Capacity Unit Upgrade Protection with Support and Capacity Unit Upgrade
   Protection with Support fees aggregate toward the revenue total of this
   exhibit.

* Certain confidential information on this page has been omitted and filed
  separately with the Securities and Exchange Commission.
<PAGE>

IBM / OEM Program Agreement: AUS970272
Transaction Document Number 001

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

Thank you for doing business with IBM. This is a Transaction Document under the
IBM/OEM Program Agreement No. AUS970272 ("Base Agreement"). This Transaction
Document becomes effective when signed by both parties.

By signing below for our companies, each of us agrees to the terms of this
Transaction Document. Once signed, 1) both parties agree any reproduction of the
Agreement made by reliable means (for example, photocopy or facsimile) is an
original unless prohibited by local law and 2) all Programs within this
Transaction Document are subject to it.

Agreed to:                                     Agreed to:

International Business Machines Corporation    CrossWorlds Software, Inc.

By: /s/ Stephen E. Jones                       By: /s/ Barton Foster
   ---------------------------------              ----------------------------

Name:  Dominic Cavalucci                       Name:  Barton Foster
     -------------------------------                --------------------------

Title: OEM Software Contracts                  Title: Senior VP
      ------------------------------                 -------------------------

Date:  6/3/99                                  Date:  6/3/99
     -------------------------------                --------------------------

IBM Address:                                        CrossWorlds Software, Inc.

11400 Burnet Road                                   577 Airport Blvd., Ste. 800
Austin, TX 78758                                    Burlingame, CA 94010
Attn: Dominic Cavalucci
OEM Software Contracts
         Internal Zip 4106

                                    1 of 8
<PAGE>

IBM / OEM Program Agreement: AUS970272

Transaction Document Number 001

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

Thank you for doing business with IBM. This is a Transaction Document under the
IBM/OEM Program Agreement No. AUS970272 ("Base Agreement"). This Transaction
Document becomes effective when signed by both parties.

By signing below for our companies, each of us agrees to the terms of this
Transaction Document. Once signed, 1) both parties agree any reproduction of the
Agreement made by reliable means (for example, photocopy or facsimile) is an
original unless prohibited by local law and 2) all Programs within this
Transaction Document are subject to it.

Agreed to:                                       Agreed to:

International Business Machines Corporation      CrossWorlds Software, Inc.

By:   /s/Stephen E. Jones                  By:
   ------------------------------------       ----------------------------------

Name: Dominic Cavalucci                    Name:  Barton Foster
     ----------------------------------         --------------------------------

Title: OEM Software Contracts              Title: Senior VP
      ---------------------------------          -------------------------------

Date:    6/3/99                            Date:
     ----------------------------------         --------------------------------

IBM Address:                                    CrossWorlds Software, Inc.

11400 Burnet Road                               577 Airport Blvd., Ste. 800
Austin, TX 78758                                Burlingame, CA 94010
Attn: Dominic Cavalucci
OEM Software Contracts
      Internal Zip 4106

                                    1 of 8
<PAGE>

                          IBM/OEM Software Agreement
                        Transaction Document Number 001

                MQSERIES INTEGRATOR (MQSI) RESTRICTED LICENSES
                ----------------------------------------------

This exhibit authorizes you to distribute this product on a World Wide basis
with the exception of those geographic areas identified in the OEM Distribution
Agreement,

     1. MQSI Restricted License
        -----------------------
                                                                    OEM PRICE IN
PART #        DESCRIPTION                                             US DOLLARS
------        -----------                                             ----------
41L187        MQSeries Integrator Product Version 1.x and          Section 9 (b)
              Version 2,x, UNIX and NT Platforms

     2. Value-Add Components which must be Included In Offerings:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
                          Vendor                        Application Description
----------------------------------------------------------------------------------------
<S>                                              <C>
CrossWorlds Software Inc. (CrossWorlds)          The CrossWorlds InterChange Server

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

     3. Related Licensed Materials which must be included in Offerings: Related
     Licensed Materials (standard materials included with the product on golden
     master) will be included in your Offering in the appropriate languages and
     with the appropriate terms for the geographies in which It Will be
     distributed.

     4. Territory is World Wide, with the exception of US State Department
     specified prohibited countries which include Cuba, Iraq, Iran, Libya, North
     Korea, and Yugoslavia (Serbia-Montenegro).

     5. Term: The term of this Transaction Document will be two (2) years from
     the date signed by the last signatory hereto, and will be automatically
     renewed for an additional one (1) year term unless notice of termination is
     provided by either party at least thirty (30) days prior to such renewal
     date. However, in the event you do not purchase the minimum quantity
     specified in Section 9 (b), such renewal is contingent upon your and IBM's
     agreement to revised terms for the programs.

     6. License Agreement Requirement: You will include in your Offering(s) the
     International Program License Agreement in the appropriate languages and
     with the appropriate terms for the geographies in which it will be
     distributed,

     7. Technical Support: You or your Distributors will provide Level 1 Service
     and Level 2 Service to Customers. You will include with your Offerings a
     conspicuous description of Level 1 and Level 2 Services and the method and
     means the Customer shall use to contact your Level 1 and Level 2 Services,
     IBM will provide Level 3 Service to you at no additional charge during the
     time that such service Is available to all other IBM customers of the IBM
     Product.

     8. Coordinators: The following contract coordinators are authorized to
     receive notices under this Transaction Document and the Base Agreement:

                                    2 of 8
<PAGE>

     ---------------------------------------------------------------------------
                        For IBM                  For you:
     ---------------------------------------------------------------------------
     Name               Dominic Cavalucci        Director Alliances
     ---------------------------------------------------------------------------
     Company            IBM                      CrossWorlds Software Inc.
     ---------------------------------------------------------------------------
     Address            11400 Burnet Rd.         577 Airport Blvd, Suite 800
     ---------------------------------------------------------------------------
                        Internal Zip 4106
     ---------------------------------------------------------------------------
     City, ST           Austin, TX 78758         Burlingame CA 94010
     ---------------------------------------------------------------------------
     Telephone:         (512)823-8664            (650)685-9077
     ---------------------------------------------------------------------------
     Fax:               (512)823-8712            (650)685-1748
     ---------------------------------------------------------------------------

     9.   Royalty Calculation and Payment Requirements:

          a) CrossWorlds will pay IBM royalty payments on sales of CrossWorlds
          products bundled with MQSI as described in Section 2, [*] based on
          implementation schedules of Phase (1), (2)a, and (2)b. Definitions of
          [*] and Implementation Phases are listed below:

[*]

* Certain confidential information on this page has been omitted and filed
  separately with the Securities and Exchange Commission.

<PAGE>

[*]

     (b) The OEM discounts and prices offered in this Transaction Document are
     based on total SRP revenue volume commitment of [*] over a (2) year term.
     The [*] commitment is calculated on IBM's SRP's for MQSI product and for
     upgrade support for MQSI. IBM SRP for MQSI product for alt CrossWorlds
     offering regardless of end user customer, processor size or operating
     platform environments is [*].

     [*]

     [*]

     Your purchase order will contain the following information: purchase order
     number, product pad number, order quantity, a contact name and phone
     number. Your orders will be sent to:

     IBM Branch Office JWQ
     Accounts Receivable - Internal Zip 261
     150 Kettletown Road

* Certain confidential information on this page has been omitted and filed
  separately with the Securities and Exchange Commission.

                                   4 of 8
<PAGE>

     Southbury, CT 06488

     c) You will provide to IBM quarterly sales report-, for quarters ending
     3/31, 6/30, 9/30, and 12/31. The sales report and payment for any royalties
     owed for the quarter being reported are due to IBM within 30 days of the
     quarter end.

     10. Miscellaneous Terms/Conditions;

     a) IBM wilt deliver to CrossWorlds Golden Master(s) for the MQSI program
     product listed above by the 30th day after mutual execution of this
     Transaction Document.

     b) The license granted to you is a "Restricted License" for the products
     listed in Section 2, which means they can only be used in conjunction with
     your product "The CrossWorlds InterChange Server",

     c) Purchases of MQSI may not be aggregated with purchases of other IBM
     products for discount purposes.

     d) Both parties will promptly reconcile total payments based on the actual
     24 month order volume and the contribution of those payments to the SRP
     volume commitment. Any amount overpaid by you shall be credited to your
     account and we will invoice you for any amount underpaid.

     e) CrossWorlds has the option to inform IBM in writing their wish to
     increase the committed revenue volume (per the chart below) to take
     advantage of higher discount levels at any point during Phase I!. The new
     discount(s) will only take effect on new sales after the Increase in
     commitment volumes. No retroactive discounts Will be applied toward sales
     prior to the increase in commitment volumes.

     MQSI SRP Revenue Volume Commitment and Associated OEM Discount Levels over
     a 12-month period:

     SRP Commitment:   [*]   [*]    [*]      [*]      [*]     [*]    [*]    [*]

     [*]               [*]   [*]    [*]      [*]      [*]     [*]    [*]    [*]

     f) No product returns are allowed, in the case of customer returns for
     warranty/indemnity issues, CrossWorlds may distribute MQSI as part of a
     replacement or workaround without charge.

     g) CrossWorlds will provide a list of customer situations who should
     qualify for classification as Category (1) and (2) customers (reference
     Attachment{ of this Transaction Document) at Transaction Document signing.

     h) IBM commits to holding quarterly meeting of the joint IBM/CrossWorlds
     Design Council and to have the IBM Technical Coordinator for CrossWorlds
     present at such meetings. CrossWorlds commits to participating in IBM MQSI
     Quarterly Design Council meetings during the term of this Agreement. No
     other participants will attend the joint Design Council unless mutually
     agreed. Both party's Technical Coordinators shall discuss and review
     technical issues relating to (1) MQSI planned changes/enhancements which
     may relate to and/or impact the effectiveness and use of CrossWorlds
     products with MQSI and (2) CrossWorlds requests for IBM MQSI
     changes/enhancements. Both IBM and CrossWorlds will provide the designated
     Technical Coordinators for each party prior to the start of the first
     council meeting.

     i) Press Announcement requirements: IBM and CrossWorlds shall issue a joint
     press announcement and host a joint press event announcing this Transaction
     Document with the appropriate executives from both companies within 30 days
     of mutual execution of this Transaction Document.

     j) IBM AIM sales representatives will be compensated for the MQSI OEM Sales
     revenues of CrossWorlds Offerings.

* Certain confidential information on this page has been omitted and filed
  separately with the Securities and Exchange Commission.

                                    5 of 8
<PAGE>

     k) in the event of a conflict between this Transaction Document and the
     Base Agreement, this Transaction Document shall prevail.

     11. Upgrade Protection:

                                                                  PRICE IN
<TABLE>
<CAPTION>
PART #     DESCRIPTION                                            US DOLLARS
------     -----------                                            ----------
<S>        <C>                                                    <C>
41L1901    Annual Upgrade Protection Fee                          [*] of net price per year
           for MQSeries Integrator for NT and UNIX platforms
</TABLE>

     ('net price' refers to IBM OEM price as defined in this Transaction
     Document)

     - Upgrade Protection, purchased for an individual license over a one year
     period, will provide the purchaser with a new version or release when made
     generally available by IBM, at no additional cost to CrossWorlds. If the
     Upgrade Protection fee has been paid continuously since the original
     license was purchased. When Upgrade Protection has been purchased, OEM may
     upgrade the end user's license to the new version.

     - Upgrade Protection must be paid in advance for each license for each year
     in effect, beginning with the first quarterly accounting and payment as
     described in Section 5,2 of the Base Agreement. Each quarterly accounting
     and payment for new licenses in that quarter must have [*] added for the
     Upgrade Protection fees.

         12.  Amendments to Base Agreement:

The following amends the Base Agreement solely with respect to this Transaction
Document 001, and not with respect to any other Exhibits applicable to the Base
Agreement.

a)       The "Duration" on the profile sheet of the Base Agreement is hereby
         amended to read: "Duration: Two (2) years from mutual execution of
         IBM/OEM Software Agreement Transaction Document Number 001;
         automatically renewed for an additional one (1) year term unless notice
         of termination is provided by either party at least thirty (30) days
         prior to such renewal date".

b)       Section 2,1 of the Base Agreement is hereby amended to read: "provide
         you with golden master copies for the IBM Product(s) listed in an
         Exhibit or Transaction Document. We will make any generally available
         new releases and versions (i.e., those new releases and versions not
         specified in an Exhibit or Transaction Document) of such IBM Product
         available to you. Prices for such new releases and versions may vary.

c)       Section 4.3 of the Base Agreement is hereby amended to read' "make 100
         number of copies of the IBM Product(s) to be used solely for
         demonstration, support and evaluation of, and training on, development
         and testing, your Offering. Additionally, we will specify in the
         Profile if you are authorized to make any other no charge copies for
         any other purposes. You agree not to make any unauthorized copies.
         Provided a royalty has been already paid to IBM, there is no charge or
         royalty to you for distributions of the IBM Product(s) (i) with
         updates, upgrades, enhancements or new versions of Your Product(s) and
         (ii) as part of a replacement or workaround of your Offering due to
         warranty/indemnity issues."

d)       Section 4.8 of the Base Agreement is amended to read as follows: "not
         assign your rights or delegate your obligations under this Agreement to
         any third party without our written consent except to a successor in
         the event of a merger, acquisition or sale of assets, where such
         successor assumes in writing or by operation of law your obligations
         under this Agreement. Except for the foregoing, you may not assign this
         Agreement nor your rights or obligations hereunder to a third party
         without IBM's written consent and any attempt to do so is void".

e)       Section 5.1 of the Base Agreement is amended by inserting the phrase
         "(except as set forth in Section 4.8)" after the word
         "non-transferable".

* Certain confidential information on this page has been omitted and filed
  separately with the Securities and Exchange Commission.

                                    6 of 8
<PAGE>

f)       Section 7.1 of the Base Agreement is amended by deleting it and
         replacing it with the following' "7.1 If IBM increases the SRP for the
         IBM, Products, this will not change the SRP or discount level listed in
         the Transaction Document 001 during its term."

g)       Section 9.1 of the Base Agreement is amended to read as follows; "IBM
         warrants that for a period of 90 days following delivery of the golden
         master to you containing the IBM Product(s), the IBM Product(s) will
         perform in accordance with the functional specifications contained in
         the documentation for such IBM Product(s) and the golden master will be
         free of defects in materials and workmanship. IBM does not warrant that
         the IBM Product(S) will be error-free. Your exclusive remedy for any
         breach of the foregoing warranty will be for IBM to promptly either (as
         applicable), remedy such non-compliance or replace such golden master
         and permit you to distribute such remedy free of charge to your
         existing customers, IBM represents that when the IBM Product is used in
         the specified operating environment, it will conform to its
         specifications. If such specifications state that the IBM Product is
         '"Year 2000 Ready," such product when used in accordance with its
         associated documentation is capable of correctly processing, providing
         and/or receiving date data within and between the 20th and 21st
         centuries, provided that all other products (including hardware,
         software and firmware) used with the Program(s) properly exchange
         accurate date data with it. EXCEPT FOR THE FOREGOING, THE IBM
         PRODUCT(S) WE PROVIDE TO YOU PURSUANT TO THIS AGREEMENT ARE PROVIDED
         WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT
         LIMITED TO, WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
         PURPOSE."

h)       Section 11.2 of the Base Agreement is amended by (i) replacing the
         words "that party's" with "a", (ii) inserting the words "or trademark"
         immediately after the word "copyright" and (ii[) inserting the words
         "and your customers and other persons to whom you've distributed the
         IBM Product(s)" after the words "to enable you".

i)       Section 12.1 of the Base Agreement is amended to read as follows: "IBM
         hereby grants to you a nonexclusive, nontransferable (except as set
         forth in Section 4.8), royalty-free, worldwide right and license to use
         any IBM product logos or trademarks for the MQSeries product family in
         conjunction with your Offering pursuant to IBM's guidelines for such
         use. You will not remove any IBM trademarks or logos embedded in the
         IBM products. You may assert that your Offerings include the IBM
         products.

j)       Section 13.1 of the Base Agreement is amended by deleting the phrase ",
         and either party may terminate this Agreement without cause upon three
         months written notice, and adding the following "where 'cause' means a
         party's breach of a material term of this Agreement."

k)       The following is added to Section 14.3 of the Base Agreement' "The
         foregoing is subject to the provision that if we assign our rights or
         delegate our responsibilities under this Agreement to any entity which
         is not directly or indirectly controlling, controlled by or under
         common control with us, where 'control' means the ownership of 50% or
         more of the voting shares of the subject entity, you may terminate this
         Agreement upon written notice to us."

                                    7 of 8
<PAGE>

                                 ATTACHMENT I

[*]

[*]

[*]

[*]

* Certain confidential information on this page has been omitted and filed
  separately with the Securities and Exchange Commission.

                                    8 of 8
<PAGE>

                              [LETTERHEAD OF IBM]

February 8, 2000

Mr. Scott Takaoka
Cross Worlds Software, Inc.
577 Airport Blvd, Suite 800
Burlingame, CA 94010

SUBJECT: Amendment 01 to OEM DISTRIBUTION AGREEMENT NO. AUS970272

Dear Mr. Scott Takaoka,

     As a matter of clarification, the base Agreement in paragraph 7.1 requires
both parties to sign a written amendment to all changes excluding price changes.
Since we both wish to amend the Duration of this Agreement, please sign below
indicating your acceptance. Duration shall be amended to read as follows:

     Duration: The duration of this Agreement will be extended to
     June 3, 2001, and will be automatically renewed for an
     additional one (1) year term unless notice of termination is
     provided by either party at least thirty (30) days prior to such
     renewal date. However, in the event you do not purchase the
     minimum quantity specified in Section 9 (b), such renewal is
     contingent upon your and IBM's agreement to revised terms for
     the Programs.

     All exhibits attached to this Agreement shall remain in effect
     until changed or terminated via a sixty day written notice per
     paragraph 7.1 of this Agreement.

Once signed and completed, both parties agree any reproduction of this Extension
of OEM Distribution Agreement No. AUS970272 made by reliable means (for example,
photocopy or facsimile) is an original.

Please sign below if you concur to this contract extension and fax back to me.
If you do not concur, please indicate so below and return to me.

Sincerely,

                                           CrossWorlds Software, Inc.

/s/ Dominio Cavalucci  2/8/2000            /s/ Mark Kent        2/9/00
--------------------------------           -------------------  ------
     Signature           Date                  Signature         Date

Dominio Cavalucci                                Mark Kent
                                           -------------------
Contract Administrator                          Print Name
IBM Software Procurement, US
                                                 SVP & CFO
                                            -------------------
                                                   Title

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