Document:

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                                                                   EXHIBIT 10.37

                           OEM DISTRIBUTION AGREEMENT

                                     between

                         THE SANTA CRUZ OPERATION, INC.

     A Company Incorporated in the State of California in the United States

                                       and

                              CALDERA SYSTEMS, INC.

        A Company Incorporated in the State of Utah in the United States

                          Date of Issue: June 22, 2000
                                         -------------

                             Contract Number: 1X101

Note: This Agreement shall be deemed invalid unless executed by COMPANY within
thirty (30) days of the date of Issue.

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This Agreement is made and entered into on the date last executed by and between
The Santa Cruz Operation, Inc., a corporation of the State of California with
its principal place of business at 425 Encinal Street, Santa Cruz, California
95061 on behalf of it Tarantella Division ("TARANTELLA"), and Caldera Systems,
Inc. (hereinafter "OEM"), a company incorporated under the laws of the State of
Utah with its place of business at 240 West Center Street, Orem, Utah 84057.

WHEREAS, TARANTELLA is a licensor, manufacturer and distributor of TARANTELLA
software and related products and materials ("Licensed Product"),

WHEREAS, OEM is a reseller of computer products manufactured by or on behalf of
OEM, and possesses expertise in broad-based horizontal markets, and

WHEREAS, the parties are desirous of OEM's marketing of Licensed Products in
conjunction with substantial added value in the form of hardware and/or software
to its customers;

NOW, THEREFORE, the parties agree as follows:

1.   The terms and conditions set forth in this Agreement shall apply to the
     licensing and use of the Licensed Products and the sublicensing and
     distribution of OEM Products that become subject to this Agreement.

2.   Additional exhibit(s) may be added to this Agreement. Each such additional
     exhibit shall be considered part of this Agreement when executed by OEM and
     accepted by TARANTELLA. Any additional terms and conditions set forth in
     such exhibit shall apply.

3.   This Agreement and its exhibit(s) set forth the entire agreement and
     understanding between the parties as to the subject matter hereof. Neither
     of the parties shall be bound by any conditions, definitions, warranties,
     understandings or representations with respect to such subject matter other
     than as expressly provided herein or as duly set forth on or subsequent to
     the date of acceptance hereof in writing and signed by a proper and duly
     authorized representative of the party to be bound thereby. No provision
     appearing on any form originated by OEM shall be applicable unless such
     provision is expressly accepted in writing by an authorized representative
     of TARANTELLA.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized representatives.

OEM:                                    THE SANTA CRUZ OPERATION, INC.

By:                                     By:
   -------------------------               -------------------------

----------------------------            ----------------------------
(Title)                                 (Title)

----------------------------            ----------------------------
(Date)                                  (Date)

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                         TARANTELLA/Caldera Confidential
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1.   DEFINITIONS

     Each term defined in this Section is as follows unless the context in which
     the term is used expressly provides otherwise. The term "Section" refers to
     an identified section of this Agreement.

     a.   Bundled Products means the combination of the Licensed Products and
          OEM Products that OEM will market and sell as a combined product
          offering, or sales of Licensed Products on a stand-alone basis, but
          only in incidental quantities and in direct support of OEM's marketing
          and sales of the combined product offering.

     b.   "End User" means an entity who is not an affiliate of OEM's enterprise
          and acquires the Licensed Products for Internal Use. "End User" does
          not include an entity which resells, sells, licenses, rents or leases
          Licensed Products to other parties in the regular course of business.

     c.   "Expiration Date" means each date identified as such in the applicable
          exhibit that is made part of this Agreement.

     d.   "Golden Master" means master diskettes, master CD ROM or other media,
          containing the Licensed Products and master user documentation from
          which OEM may duplicate the TARANTELLA Products under this Agreement.

     e.   "Internal Use" means use in the regular course of business by the user
          who has licensed the software. "Internal Use" does not include resale,
          or the sale or lease of access to the Licensed Product for timesharing
          purposes.

     f.   "List Price" means the price for TARANTELLA Licensed Products listed
          in TARANTELLA's published price list excluding any discounts and/or
          negotiated changes.

     g.   "Marks" means TARANTELLA's trademarks, service marks, logos,
          designations and insignias.

     h.   "OEM Authorized Reseller" means an entity that acquires Licensed
          Products for resale from OEM.

     i.   "Licensed Products" means the TARANTELLA products and related products
          and materials identified in the applicable exhibit and made part of
          this Agreement that OEM is authorized to market and sell under this
          Agreement.

     j.   "Releases" shall mean changes or additions to the TARANTELLA Licensed
          Product, other than maintenance modifications, that improve functions,
          add new functions, or improve performance by changes in software
          design. A Release is denoted and designated by TARANTELLA by a change
          in the next to right-most digit in the complete product number.

     k.   "Subsidiary" means a corporation or other legal entity (i) the
          majority of whose shares or other securities entitled to vote for
          election of directors (or other managing authority) is now or
          hereafter controlled by such company either directly or indirectly; or
          (ii) the majority of the equity interest in which is now or hereafter
          owned and controlled by such company either directly or indirectly;
          but any such corporation or other legal entity shall be deemed to be a
          Subsidiary of such company only so long as such control or such
          ownership and control exists.

     l.   "Updates" shall mean changes or additions to Licensed Product which
          primarily include maintenance modifications. An Update is denoted and
          designated by TARANTELLA by a change in the right-most digit in the
          complete product number.

     m.   "Versions" shall mean any modifications to the Licensed Products that
          result from changes or additions that provide additional value and
          utility to the Licensed Products. A Version is denoted and designated
          by TARANTELLA by a change in the left-most digit in the complete
          product number.

2.   TERM

     The term of this Agreement will commence on the date it is executed by an
     authorized TARANTELLA signatory and, shall remain in effect for a one (1)
     year period (the `Initial Term"). Thereafter, this Agreement will
     automatically renew for subsequent one (1) year periods (the "Renewal
     Period") unless (i) the Agreement is terminated by either party pursuant to
     Section 11. of this Agreement, or (ii) either party terminates for
     convenience by sending the other notice thereof at least ninety (90)
     calendar days prior to the end of such Initial Term or the then current
     Renewal Period.

3.   APPOINTMENT AND RIGHTS

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     a.   Appointment. TARANTELLA appoints OEM as a TARANTELLA Authorized
          Original Equipment Manufacturer. This appointment is non-exclusive,
          with TARANTELLA reserving the right to appoint other TARANTELLA
          customers as TARANTELLA Authorized OEMs without restriction as to
          number and location.

     b.   Grant of Rights. TARANTELLA grants OEM a non-exclusive,
          non-transferable, worldwide license to market Licensed Products to (i)
          End Users acquiring OEM's Bundled Products for Internal Use and (ii)
          OEM Authorized Resellers acquiring OEM's Bundled Products solely for
          resale in the ordinary course of business. OEM agrees to offer
          Licensed Products for sale to End Users or OEM Authorized Resellers
          only as a part of a Bundled Product offering.

     c.   Reproduction/Installation License. OEM may reproduce the Licensed
          Product, using the Golden Master provided to OEM by TARANTELLA, only
          in accordance with the conditions contained in this Agreement and
          applicable exhibit(s) to this Agreement. OEM has no other right to
          reproduce any portion of the Licensed Product, unless expressly agreed
          in writing.

4.   PRODUCTS AND PRICES

     a.   Eligible Products. OEM may market the Licensed Products specified inn
          Exhibit A to this Agreement. Except to the extent expressly provided
          otherwise in a Exhibit A, TARANTELLA reserves the right at any time to
          make changes to any Licensed Products, including without limitation
          changes which are required (i) for security, or (ii) to facilitate
          performance in accordance with specifications.

     b.   Modifications to Licensed Products. Except as otherwise agreed by the
          parties in writing, OEM may modify the Licensed Products only as
          provided for within TARANTELLA's standard installation procedure - for
          example by the addition of drivers, and only as required to create a
          hardware and/or software specific implementation as necessary for the
          operation of the Licensed Products on the OEM Products. Additional
          modification rights and/or restrictions may be included an exhibit(s)
          to this Agreement.

          Except as otherwise agreed by the parties in writing, OEM is also
          authorized to provide Licensed Products to End User customers of OEM
          for use solely on OEM hardware and/or software. An OEM representative
          shall provide assistance for installation of the software products if
          required.

          In the event OEM pre-installs the Licensed Products, OEM agrees not to
          alter the computer screen which will inform the End User, upon
          operating the OEM Products, of the TARANTELLA and third party
          copyright notices.

     c.   Pricing and Discounts. OEM may acquire Licensed Products under this
          Agreement at the prices included in TARANTELLA's published TARANTELLA
          price list (TARANTELLA price list is available at the TARANTELLA
          website located at: http://www.sco.com/pricing/tarantella.html), less
          the discount set forth in Exhibit A to this Agreement (or, as
          applicable, at the per unit price set forth in such applicable
          exhibit). Except to the extent expressly stated otherwise in Exhibit
          A, TARANTELLA reserves the right at any time to (i) add Licensed
          Products to, or delete Licensed Products from, the TARANTELLA list
          price and/or such applicable exhibit and/or, (ii) increase or decrease
          prices on the TARANTELLA's published price list. Product deletions and
          price changes become effective upon thirty (30) days' prior written
          notice to OEM. Orders requesting delivery after the effective date of
          a price increase will be charged at the increased price.

     d.   Taxes. Prices are exclusive of all applicable taxes. OEM agrees to pay
          all taxes associated with the marketing, sublicensing and delivery of
          Licensed Products ordered under this Agreement, including but not
          limited to sales, use, excise, added value and similar taxes and all
          customs, duties or governmental impositions, but excluding taxes on
          TARANTELLA's net income. Any tax or duty TARANTELLA may be required to
          collect or pay upon the marketing or delivery of the Licensed Products
          will be paid by OEM, and such sums shall be due and payable to
          TARANTELLA upon delivery. If OEM claims a tax exemption, OEM must
          provide TARANTELLA with valid tax exemption certificates.

     e.   Product Upgrades. OEM may purchase licenses to subsequent Updates,
          Releases and/or Versions of Licensed Products for purposes of revising
          licenses obtained for OEM's Internal Use and /or distribution by
          paying the then applicable fee(s).

5.   MARKETING AND SUPPORT

     a.   Use of Authorized OEM Title. OEM may refer to itself, in connection
          with exercising its rights under this Agreement, as a "TARANTELLA
          Authorized OEM," but solely in connection with marketing the Bundled

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          Products and only during the term of this Agreement.

     b.   Use of TARANTELLA Marks and Trade Names. OEM is authorized to use the
          TARANTELLA Marks applicable to Licensed Products acquired under this
          Agreement in connection with its marketing of Bundled Products, but
          only in accordance with current trademark and trade name usage laws
          and only during the term of this Agreement. Upon the Expiration Date
          or termination of this Agreement, OEM shall no longer publicize or
          advertise the fact that it is an authorized distributor for TARANTELLA
          and shall make no further use of TARANTELLA Marks except as permitted
          under the then current law. OEM agrees not to alter, erase or
          overprint any notice provided by TARANTELLA and not to attach any
          additional trademarks, except as included in Exhibit A, without the
          prior written consent of TARANTELLA or affix any TARANTELLA Marks to
          any non-Licensed Product.

     c.   End User Satisfaction. OEM shall maintain in force an agreement for
          technical support with TARANTELLA.

     d.   OEM Authorized Resellers. OEM agrees to inform each OEM Authorized
          Reseller that the TARANTELLA Software License Agreement governs the
          use of the Licensed Product before any OEM Bundled Products are
          provided to the OEM Authorized Reseller. If OEM should become aware of
          one of OEM's OEM Authorized Resellers or End Users violation of
          TARANTELLA's intellectual property and/or proprietary rights, OEM
          shall promptly notify the OEM's OEM Authorized Resellers or End Users
          of the violation and shall i) promptly notify TARANTELLA, ii) upon
          TARANTELLA's request, assign any rights of enforcement that OEM has
          with regard to such violation to the extent that such rights are
          reasonably necessary for TARANTELLA to protect its TARANTELLA's
          intellectual property and/or proprietary rights, and iii) cooperate
          with TARANTELLA in such enforcement.

     e.   Point of Sale Reports. When OEM reproduces Licensed Product for
          distribution, OEM will provide TARANTELLA, by no later than the tenth
          (10th) day of each calendar month, an estimate of the previous
          calendar month sales. This monthly sales estimate is to include, at a
          minimum, total units by product by geographic territory, as stipulated
          by TARANTELLA.

          For all sales of Licensed Product, OEM will provide TARANTELLA, by no
          later than thirty (30) days after the close of each calendar quarter,
          a final Point of Sale report for the previous calendar quarter. "Point
          of Sale Report" means, for purposes of this Agreement, a report
          provided by OEM to TARANTELLA which is in a TARANTELLA-agreed format
          which includes, among other things, (i) a list of Licensed Products
          sold, (ii) geographical destination for each such Licensed Product,
          containing, at a minimum, State/Province and country, (iii) the model
          numbers of the Licensed Products sold, and (iv) the amount of on-hand
          inventory of all Licensed Products by model number (including products
          listed in the POS Report and any other Licensed Products in inventory
          not otherwise included in the POS Report).

6.   PLACING ORDERS & TERMS OF PAYMENT

     a.   Placing Orders. OEM is authorized to place orders with TARANTELLA for
          Licensed Products through OEM's Corporate Headquarters. Additional
          ordering locations may be agreed, in writing, from time to time. Each
          purchase order received by TARANTELLA shall form a separate contract,
          into which the terms of this Agreement shall be included by reference.
          The terms of this Agreement shall apply to each such order as between
          the ordering and accepting parties, as legal entities; variations of
          such terms, may be agreed individually by those parties.

          OEM may also utilize TARANTELLA's PartnerStore web based ordering
          facilities for the purchase of licenses for Licensed Products.
          TARANTELLA's PartnerStore terms and conditions are included in Exhibit
          B of this Agreement.

     b.   Acceptance of Orders. Orders, placed with TARANTELLA in accordance
          with the terms and conditions of this Agreement will be deemed
          accepted by TARANTELLA if not rejected within two working days of
          receipt by TARANTELLA. Orders requesting shipment more than ninety
          (90) days from the date of the order are subject to written acceptance
          by TARANTELLA. Should orders for Licensed Products exceed TARANTELLA's
          available inventory, TARANTELLA may, unless OEM has specifically
          indicated otherwise in its purchase order, accommodate OEM's order by
          allocating available inventory and making shipments on a basis
          TARANTELLA deems equitable, without liability to TARANTELLA on account
          of the method of allocation chosen or its implementation.

     c.   Cancellation of Orders. Orders accepted by TARANTELLA may be canceled
          without penalty by giving written

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          notice of cancellation to TARANTELLA at least fifteen (15) days prior
          to the scheduled shipment date. Orders canceled less than fifteen (15)
          days prior to the scheduled shipment date may be subject to a
          cancellation payment of fifteen percent (15%) of the invoice value of
          the canceled order. In no event may OEM cancel any order or any
          portion of an order after shipment.

     d.   Product Availability and Shipping Designations. TARANTELLA will use
          commercially reasonable efforts to fill OEM's orders for Licensed
          Products and meet OEM's request for shipment dates subject to product
          availability and consistent with TARANTELLA production and supply
          schedules. TARANTELLA will ship Licensed Products and bill OEM to
          agreed OEM "ship to" and "bill to" locations. OEM may change the "ship
          to" location at any time prior to the estimated shipment date;
          however, TARANTELLA may not be able to honor a notice, unless it is in
          writing and received at least fifteen (15) days prior to the estimated
          shipment date. The right to change "ship to" locations does not
          include any right to drop ship to customer sites. So long as
          TARANTELLA uses commercially reasonable efforts to fill OEM's orders,
          TARANTELLA will not be liable for any damages to OEM or to any third
          party for TARANTELLA's failure to fill any orders or for any delay in
          delivery or error in filling any orders for any reason whatsoever.

     e.   Obligation to Ship In Presence of Breach. Even in cases where
          TARANTELLA accepts a purchase order, TARANTELLA will not be obligated
          to ship Licensed Products if OEM is more than thirty (30) days in
          arrears on payments owing to TARANTELLA or if OEM is otherwise in
          material breach of this Agreement at the time of the scheduled
          shipment. This thirty (30) days delay period is only applicable to the
          first time OEM is in arrears in payment or is otherwise in material
          breach of this Agreement.

     f.   Delivery, Title & Risk of Loss. Licensed Products shipped hereunder
          shall be shipped FOB TARANTELLA's facility to the "ship to" location
          specified by OEM. Title to Licensed Products, exclusive of the rights
          retained under this Agreement in Marks, patents, copyrights, trade
          names, trade secrets and intellectual property, and all risk of loss
          will pass to OEM upon delivery at TARANTELLA's designated shipping
          facility.

     g.   Payment Terms: Subject to OEM maintaining a good payment record with
          TARANTELLA, with regard to each order for Licensed Product, TARANTELLA
          shall invoice OEM for such order no sooner than the day on which the
          corresponding shipment from TARANTELLA takes place, and OEM shall make
          payments to TARANTELLA in the currency specified on the invoice, or as
          otherwise agreed in writing. All payments under this AGREEMENT shall
          be sent to the address specified on the invoice within thirty (30)
          calendar days after receipt of such invoice. TARANTELLA reserves the
          right to set a credit limit for OEM.

          In the event OEM is granted the right, in an applicable exhibit, to
          reproduce the Licensed Product and to make payment after such
          reproduction, OEM shall submit payment for such Licensed Product sales
          at the time OEM provides TARANTELLA with its quarterly Point of Sales
          Report due no later than thirty (30) days after the close of each
          calendar quarter.

          Any amounts owing under this Agreement will be due and payable as
          indicated in any special terms and conditions stated in the applicable
          exhibit. Payment not received by TARANTELLA when due will accrue
          interest on an annual basis from the date due until paid of twelve
          (12%) per annum on any outstanding balance or the maximum legal rate
          allowed by law, whichever is less.

7.   INTELLECTUAL PROPERTY RIGHTS & INDEMNIFICATION

     a.   Licensed Products. Licensed Products acquired under this Agreement is
          made available to OEM to market only under the provisions of this
          Agreement. OEM shall distribute with each Licensed Product the End
          User License Agreement included by TARANTELLA in the Licensed Product
          package and included as Exhibit C to this Agreement.

     b.   Proprietary Nature of Licensed Products and Ownership. No title to or
          ownership of software acquired under this Agreement is transferred to
          OEM. Notwithstanding any provision of this Agreement to the contrary,
          OEM acknowledges TARANTELLA's representation that TARANTELLA, or the
          licensor through which TARANTELLA obtained the rights to distribute
          the Licensed Products, owns and retains all title and ownership of all
          intellectual property rights in the Licensed Products, including all
          software, firmware, copies of software, documentation and related
          materials which are acquired, produced or shipped by TARANTELLA under
          this Agreement. Such title and ownership by TARANTELLA extends to any
          Modifications to and derivative works from software acquired under
          this Agreement which include any portion of Licensed Product(s).
          TARANTELLA claims no ownership interest in any portion of such
          Modification(s) by OEM that do not include any portion of the Licensed
          Product. TARANTELLA does not transfer any portion of such title and

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          ownership, or any of the associated goodwill, to OEM, and this
          Agreement should not be construed to grant OEM any right or license,
          whether by implication, estoppel or otherwise, except as expressly
          provided. OEM agrees to be bound by and observe the obligations
          imposed on OEM under this Agreement with regard to the Licensed
          Products acquired under this Agreement. Except as set forth in this
          Agreement, or as may be permitted in writing by TARANTELLA, OEM agrees
          not to provide Licensed Products or any part or copies thereof to any
          third party without the prior written consent of TARANTELLA.

     c.   Licensed Product Infringement. TARANTELLA shall indemnify and hold OEM
          harmless from and against and defend any claim, suit or proceeding,
          and pay any settlement amounts or damages awarded by a court of final
          jurisdiction, arising out of claims filed by third parties that a
          Licensed Product infringes any copyright, patent, trade mark or other
          intellectual property right, provided that OEM promptly notifies
          TARANTELLA in writing of any such claim, suit or proceeding, and
          permits TARANTELLA to control the settlement or defense thereof. OEM
          has the option to be represented by Counsel at its own expense.

          If, pursuant to any such claim, a court of competent jurisdiction
          removes or restricts OEM's right to distribute Licensed Product,
          TARANTELLA shall, at its sole option (i) procure for OEM the right to
          continue to distribute Licensed Product; or (ii) modify Licensed
          Product, provided the functionality thereof is not substantially
          affected, so as to make it non-infringing; or, in the event that
          neither of these options is economically practical, (iii) require OEM,
          immediately upon written notice, to discontinue distribution of
          Licensed Product; in this event TARANTELLA will accept return, at
          TARANTELLA's direction and expense, of OEM's inventory of Licensed
          Product and will credit OEM the net amount received therefor. In
          addition, TARANTELLA shall have the right to exercise any of options
          (i) through (iii) at any time following receipt of notice of a claim
          of infringement of copyright or other proprietary right.

          TARANTELLA shall have no obligation under this section with respect to
          any claim of infringement of a proprietary right based upon any
          modification of Licensed Product by OEM or the combination, operation
          or use of Licensed Product with materials not supplied by TARANTELLA
          provided that it is such modification, combination, operation or use
          which caused the claimed infringement.

          THE ABOVE STATES THE ENTIRE LIABILITY OF TARANTELLA WITH RESPECT TO
          INFRINGEMENT OF PATENTS, COPYRIGHTS, TRADEMARKS OR ANY OTHER FORM OF
          INTELLECTUAL PROPERTY RIGHT BY ANY PRODUCT SUPPLIED BY TARANTELLA.

     d.   Product Tampering. OEM agrees not to de-compile, reverse engineer,
          reverse compile, modify or perform any similar type of operation on
          any object code software product, or firmware acquired under this
          Agreement, in any fashion or for any purpose whatsoever, without the
          prior written consent of TARANTELLA. In the event that applicable law
          does not allow a total prohibition of de-compiling, reverse
          engineering or reverse compiling, OEM agrees to request TARANTELLA to
          provide any required information and not to perform such acts if this
          information is made available. OEM also agrees that any such works are
          derivative works and as such are the sole and exclusive property of
          TARANTELLA or its licensor.

     e.   Confidential Information. The parties agree to protect, for a period
          of five (5) years after the date of first receipt (twenty (20) years
          in the case of source code), any Confidential Information, received
          from the other, from disclosure to anyone other than the OEM's
          employees or subcontractors, who have signed a nondisclosure agreement
          containing restrictions on disclosure substantially similar to those
          set forth herein, by use of the same degree of care as the OEM uses to
          protect its own information of a similar nature and importance, and,
          in no event, less than reasonable care. "Confidential Information"
          means the information and materials noticed or marked by TARANTELLA or
          OEM as confidential and proprietary; provided, however, that a party's
          source code need not be so marked "Confidential Information" does not
          include information that (i) is already known to the receiving party
          at the time it is disclosed and has not been obtained wrongfully, (ii)
          becomes publicly known without fault of the receiving party, (iii) is
          independently developed by the receiving party, (iv) is approved for
          release in writing by the disclosing party, (v) is disclosed without
          restriction by the disclosing party to a third party, or (vi) is
          disclosed pursuant to legal obligations beyond the control of the
          disclosing and receiving parties.

8.   WARRANTIES

     TARANTELLA WARRANTS THAT IT IS EMPOWERED TO GRANT THE RIGHTS GRANTED
     HEREIN. TARANTELLA FURTHER WARRANTS THAT THE LICENSED PRODUCT DOES NOT
     INFRINGE ANY COPYRIGHT, PATENT, TRADE MARK OR OTHER INTELLECTUAL PROPERTY
     RIGHT OF A THIRD

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     PARTY. TARANTELLA DOES NOT WARRANT THAT THE FUNCTION CONTAINED IN LICENSED
     PRODUCT WILL MEET OEM'S OR ANY USER'S REQUIREMENTS OR THAT ITS OPERATION
     WILL BE UNINTERRUPTED OR ERROR FREE. TARANTELLA WARRANTS THAT LICENSED
     PRODUCT SUBSTANTIALLY CONFORMS AND WILL PERFORM TO THE SPECIFICATIONS AND
     FUNCTIONAL DESCRIPTIONS CONTAINED IN THE PERTINENT DOCUMENTATION; AND THAT
     THE REPRODUCTION OF THE SOFTWARE ON THE MEDIA MATERIAL PROVIDED BY
     TARANTELLA IS CORRECT; AND THAT THE DOCUMENTATION IS CORRECTLY PRINTED TO
     TARANTELLA'S STANDARD AT THE TIME OF EXECUTION OF THIS AGREEMENT. PROVIDED
     OEM NOTIFIES TARANTELLA OF ANY NON-CONFORMANCE WITHIN NINETY (90) DAYS OF
     OEM'S RECEIPT OF LICENSED PRODUCT, TARANTELLA SHALL AT ITS SOLE DISCRETION
     EITHER 1) REPAIR NONCONFORMING LICENSED PRODUCT, 2) REPLACE THE
     NON-CONFORMING LICENSED PRODUCT, OR 3) ACCEPT RETURN OF SAME AND REFUND OR
     CREDIT ANY FEES PAID BY OEM FOR SUCH RETURNED LICENSED PRODUCT.

     TARANTELLA PROVIDES, TO END USERS ONLY, WARRANTIES FOR LICENSED PRODUCTS AS
     STATED IN THE TARANTELLA SOFTWARE LICENSE AGREEMENT WHICH ACCOMPANIES EACH
     LICENSED PRODUCT. ANY LICENSED PRODUCT WHICH IS DELIVERED IN PACKAGING
     CONTAINING A LICENSE AGREEMENT THAT INDICATES THAT THE LICENSOR IS OTHER
     THAN TARANTELLA, IS DEEMED TO BE PROVIDED BY TARANTELLA SOLELY ON AN "AS
     IS" BASIS, WITHOUT WARRANTY FROM TARANTELLA, AND IS WARRANTED BY THE NAMED
     LICENSOR SOLELY TO THE EXTENT THAT THE PACKAGING, OR ACCOMPANYING
     BREAK-THE-SEAL LICENSE AGREEMENT, IF ANY, EXPRESSLY STATES A WARRANTY.

     OEM IS NOT AUTHORIZED TO MAKE ANY WARRANTY COMMITMENT ON TARANTELLA'S
     BEHALF, WHETHER WRITTEN OR ORAL, OTHER THAN THOSE CONTAINED IN THE
     APPLICABLE STATEMENT OF LIMITED WARRANTY OR SOFTWARE LICENSE AGREEMENT.

9.   LIMITATION OF WARRANTIES

     EXCEPT AS OTHERWISE EXPRESSLY STATED HEREIN, OR IN AN APPLICABLE
     ATTACHMENT, TARANTELLA and ITS SUPPLIERS make no other representations or
     warranties, expressly or impliedly. By way of example but not of
     limitation, TARANTELLA and other developers make no representations or
     warranties of merchantability or fitness for any particular purpose, or
     that the use of any SOFTWARE PRODUCT will not infringe any patent,
     copyright or trademark.

10.  LIMITATION OF LIABILITY

     EXCEPT FOR BREACH OF THE WARRANTY OF TITLE, PRODUCT INFRINGEMENT OR
     CONFIDENTIAL INFORMATION NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY
     LOSS OF PROFITS, LOSS OF BUSINESS OR GOODWILL, LOSS OF USE OR OF DATA,
     INTERRUPTION OF BUSINESS, NOR FOR INDIRECT, SPECIAL, INCIDENTAL OR
     CONSEQUENTIAL DAMAGES OF ANY KIND UNDER OR ARISING OUT OF THIS AGREEMENT,
     HOWEVER CAUSED, WHETHER FOR BREACH OF WARRANTY, BREACH OR REPUDIATION OF
     CONTRACT, TORT NEGLIGENCE OR OTHERWISE EVEN IF ADVISED OF THE POSSIBILITY
     OF SUCH LOSS.

11.  TERMINATION

     a.   Termination for Cause. Either party may terminate this Agreement for
          the substantial breach by the other party of a material term. The
          terminating party will first give the other party written notice of
          the breach and a reasonable period of at least thirty (30) days in
          which to cure the alleged breach. If a cure is not achieved during the
          cure period, then the non-breaching party may terminate this Agreement
          upon written notice.

     b.   Termination by OEM. Except to the extent expressly provided otherwise
          in a particular exhibit, OEM may terminate this Agreement upon thirty
          (30) days' prior written notice to TARANTELLA if TARANTELLA amends the
          program requirements for Licensed Product contained in an exhibit to
          this Agreement and such amendment is not mutually agreed to by OEM and
          TARANTELLA.

     c.   Termination by TARANTELLA. TARANTELLA may terminate this Agreement if
          OEM fails to meet its payment obligations under this Agreement and
          this failure continues for thirty (30) days following receipt of
          written notice from TARANTELLA.

                                                                    Page 8 of 11
                         TARANTELLA/Caldera Confidential
                             Agreement Number 1X101

<PAGE>   9

     d.   Insolvency, Assignment, or Bankruptcy. Either party may terminate this
          Agreement upon written notice to the other party if the other party
          (i) is not paying its debts as such debts generally become due, (ii)
          becomes insolvent, (iii) files or has filed against it a petition (or
          other document) under any Bankruptcy Law or similar law, which is
          unresolved within sixty (60) days of the filing of such petition (or
          document), (iv) proposes any dissolution, liquidation, composition,
          financial reorganization or recapitalization with creditors, (v) makes
          a general assignment or trust mortgage for the benefit of creditors,
          or (vi) if a receiver, trustee, custodian or similar agent is
          appointed or takes possession of any of its property or business.

     e.   Acceleration of Payment. Upon termination of this Agreement, the due
          dates of all outstanding invoices to OEM for Licensed Products will
          automatically be accelerated so that they become due and payable on
          the effective date of termination, even if longer terms had been
          provided previously.

     f.   Effect of Termination on Obligations. Termination of this Agreement
          will not affect any pre-termination obligations of either party under
          this Agreement, and any termination is without prejudice to the
          enforcement of any undischarged obligations existing at the time of
          termination. Regardless of any other provision of this Agreement,
          either party will not by reason of the termination of this Agreement
          be liable for compensation, reimbursement, or damages on account of
          the loss of prospective profits on anticipated sales, or on account of
          expenditures, investments, leases, or commitments in connection with
          the other's business or goodwill, or otherwise.

12.  GENERAL PROVISIONS

     a.   Force Majeure. If either party is prevented from performing any
          portion of this Agreement (except the payment of money) by causes
          beyond its control, including labor disputes, civil commotion, war,
          governmental regulations or controls, casualty, inability to obtain
          materials or services or acts of God, such defaulting party will be
          excused from performance for the period of the delay and for a
          reasonable time thereafter.

     b.   Governing Law and Jurisdiction. This Agreement shall be construed in
          accordance with and governed by the laws of the State of California,
          excluding that State's laws regarding conflict of laws and excluding
          the UN treaty on the international sale of goods.

          The state and federal courts located in the principal place of
          business of the party against whom the claim or action is initially
          commenced, shall have exclusive jurisdiction and venue over any
          dispute or claim arising out of this Agreement; both parties hereby
          consent to the jurisdiction of and venue in said courts.

     c.   Arbitration. The parties shall promptly negotiation in good faith a
          resolution of any and all disputes arising out of or in connection
          with the interpretation, performance or non performance, or
          termination of this Agreement.

          If within two months of the date on which one party sends to the other
          a letter describing the dispute no resolution of the dispute has been
          reached, either party may request that such dispute be resolved in
          accordance with the Arbitration Rules then in effect of the American
          Arbitration Association ("AAA"). Such Arbitration shall take place in
          the State of California and shall be conducted by one arbitrator which
          will be selected within the time limits established in accordance with
          the then existing Rules of the AAA. The award of the arbitrator shall
          be final and judgment may be entered thereon in any court of competent
          jurisdiction. The parties, their representatives other participants
          and the arbitrator shall hold the existence, content and results of
          the arbitration in confidence.

          In no event shall the arbitrators limit, expand or otherwise modify
          the terms of this Agreement or award exemplary or punitive damages or
          attorney's fees. Each party shall bear its own expenses of such
          arbitration (including attorney's fee) and an equal share of the
          relevant fees of the arbitrators and the fees of the AAA.

          Nothing in this clause shall be construed to preclude any party from
          seeking injunctive relief in order to protect its rights pending
          arbitration. A request by a party to a court for such injunctive
          relief shall not be deemed a waver of the obligation to arbitrate.

          The provision of this Section shall survive for five (5) years from
          the termination or expiration of this Agreement.

     d.   Survival of Terms. The provisions of this Agreement which by their
          nature extend beyond the applicable Expiration Date or other
          termination of this Agreement will survive and remain in effect until
          all obligations are satisfied.

                                                                    Page 9 of 11
                         TARANTELLA/Caldera Confidential
                             Agreement Number 1X101

<PAGE>   10

     e.   Waiver. No waiver of any right or remedy on one occasion by either
          party will be deemed a waiver of that right or remedy on any other
          occasion.

     f.   Superior Agreement. This Agreement will not be supplemented or
          modified by any course of dealing or usage of trade. Variance from or
          addition to the terms and conditions of this Agreement in any purchase
          order or other written notification from OEM (including but not
          limited to any specification of a price different than TARANTELLA's
          current list price, less the appropriate discount) will be of no
          effect, unless otherwise expressly provided in this Agreement.

     g.   Assignment. Neither party shall assign, this Agreement, in whole or in
          part, without the prior written consent of an authorized
          representative of the other, which consent shall not unreasonably be
          withheld, any right or interest under this Agreement (except moneys
          due or to become due) to any entity other than to i) its corporate
          parent, ii) a division or wholly or majority owned subsidiary or
          affiliate. Any attempted assignment without written consent will be
          null and void.

     h.   Notice. With the exception of quotes, purchase orders,
          acknowledgments, invoices and other usual and routine communications,
          all other notices or writings required or permitted under this
          Agreement, including but not limited to notices of default or breach,
          shall be signed by an authorized representative of the sender, sent to
          the respective individuals identified in this Agreement (which may be
          changed by written notice to the other), and shall be deemed to have
          been received i) when hand delivered to such individuals by a
          representative of the sender, or, ii) three (3) days after having been
          sent postage prepaid, by registered or certified first class mail,
          return receipt requested, or iii) when sent electronic transmission,
          with written confirmation by the method of transmission, or iv) one
          (1) day after deposit with an overnight carrier, with written
          verification of delivery.

     i.   Severability. If any term, provision, covenant or condition of this
          Agreement is held invalid or unenforceable for any reason, the
          remainder of the provisions will continue in full force and effect as
          if this Agreement had been executed with the invalid portion
          eliminated. The parties further agree to substitute for the invalid
          provision a valid provision which most closely approximates the intent
          and economic effect of the invalid provision.

     j.   Independent Contractors. Each party acknowledges that the parties to
          this Agreement are independent contractors and that it will not,
          except in accordance with this Agreement, represent itself as an agent
          or legal representative of the other.

     k.   Compliance with Laws. OEM represents and warrants that all consents of
          governmental officials necessary for this Agreement to become
          effective have been obtained, or will be obtained, before OEM places
          any orders under this Agreement. OEM will comply, at its own expense,
          with all statutes, regulations, rules, ordinances, and orders of any
          governmental body, department or agency which apply to or result from
          OEM's obligations under this Agreement. OEM agrees to not export
          Licensed Products, directly or indirectly, separately or as part of a
          system, without first obtaining proper authority to do so from the
          appropriate governmental agencies or entities, as may be required by
          law.

     l.   Government Rights. OEM agrees to identify, and require Authorized
          Resellers to identify, the Licensed Product provided under this
          Agreement in all proposals and agreements with the United States
          Government or any other contractor therefor; and include that
          statement that all Licensed Product is commercial computer software as
          defined in FAR 12.212, and has been developed exclusively at private
          expense. All technical data, or TARANTELLA commercial computer
          software/documentation is subject to the provisions of FAR 12.211 -
          "Technical Data", and FAR 12.212 - "Computer Software" respectively,
          or clauses providing TARANTELLA equivalent protections in DFARS or
          other agency specific regulations.

     m.   Records Examinations. In the event that TARANTELLA determines that
          there is a discrepancy between the quantities of Licensed Products
          obtained by OEM under this Agreement and the quantity of Licensed
          Products distributed, TARANTELLA shall notify OEM and OEM shall
          promptly investigate inform TARANTELLA of the results of such
          investigation. If OEM discovers such a discrepancy, OEM shall allow
          TARANTELLA to examine the records kept by OEM with regard to
          quantities of Licensed Products distributed or used by OEM. Any
          examination will be solely for the purpose of ensuring compliance with
          this Agreement. Any examination will be conducted only by an
          independent accounting firm, that has signed a nondisclosure agreement
          containing restrictions substantially similar to those set forth in
          this agreement and has been retained by TARANTELLA on other than a
          contingency fee basis, and will occur during regular business hours at
          OEM's offices and will not interfere unreasonably with OEM's business
          activities. Examinations will be made no more

                                                                   Page 10 of 11
                         TARANTELLA/Caldera Confidential
                             Agreement Number 1X101

<PAGE>   11

          frequently than once during the OEM's fiscal year and shall examine
          the period that includes the current and preceding OEM fiscal years.,
          and TARANTELLA will give OEM ten (10) days or more prior written
          notice of the date of the examination and the name of the entity who
          will be conducting the examination. All information obtained by the
          TARANTELLA examiner will be maintained confidential by TARANTELLA and
          such examiner, . The examiner will give OEM and TARANTELLA an
          examination report containing only the information necessary to
          indicate compliance or non-compliance with this Agreement. The cost of
          any such examination conducted by an independent accounting firm shall
          be borne by TARANTELLA, unless such examination reveals a payment
          shortfall in excess of five percent (5%) of amounts due hereunder in
          which case the cost of such examination shall be borne by OEM.

     n.   Headings. The headings provided in this Agreement are for convenience
          only and will not be used in interpreting or construing this
          Agreement.

                                                                   Page 11 of 11
                         TARANTELLA/Caldera Confidential
                             Agreement Number 1X101<PAGE>   1
                                                                  EXHIBIT 10.38

              AGREEMENT FOR LINUX PROFESSIONAL CONSULTING SERVICES

                                     BETWEEN

                         THE SANTA CRUZ OPERATION, INC.

                                       AND

                              CALDERA SYSTEMS, INC.

<PAGE>   2

              AGREEMENT FOR LINUX PROFESSIONAL CONSULTING SERVICES

This Agreement for Linux Professional Consulting Services ("Agreement") is made
and entered into as of the date of the last signature hereto ("Effective Date"),
by and between The Santa Cruz Operation, Inc. ("SCO"), a California corporation,
with offices at 425 Encinal Street, Santa Cruz, CA 95061 and Caldera Systems,
Inc. a Utah corporation, with offices at 240 West Center Street, Orem, UT 84057.

WHEREAS, the parties desire for SCO to provide Linux Professional Consulting
Services for CALDERA customers as requested by CALDERA, and agreed to by SCO;

NOW, THEREFORE, in consideration of the payments herein provided to be made and
the mutual promises, agreements and undertakings herein contained, the parties
mutually agree as follows:

1.0      DEFINITIONS

As used in this Agreement, terms shall have the meanings set forth below or as
specified in the sections in which they are used:

1.1      "Work Product" shall mean all programs, software, documentation or
         related materials created by SCO for CALDERA or any CALDERA customer or
         in the performance of Services.

1.2      "Deliverables" shall mean all other items delivered to CALDERA or any
         CALDERA customer in the performance of Services which are not included
         as part of Work Product and may be subject to the licensing
         restrictions set forth in Section 2.2 herein below.

1.3      "Services" shall mean SCO Linux Professional Services, SCO Professional
         Consulting Services, and/or any other services provided by SCO under
         this Agreement.

1.4      "Service Package" shall mean SCO Linux Audit Package or any other SCO
         Professional Consulting Services Packages provided by SCO under this
         Agreement.

2.0      SCOPE OF SERVICES

2.1      From time to time, CALDERA may enter into agreements with or make
         proposals to customers under circumstances where CALDERA may desire to
         include in such agreements or proposals services which can be performed
         by SCO. These services may include: (a) services which are
         subcontracted by CALDERA to SCO, (b) services which are sold by CALDERA
         to the customer and performed by SCO for the customer, and (c) services
         which are performed by SCO for CALDERA to assist CALDERA in the
         performance of its obligations or undertakings to the customers. Such
         services under (a), (b) or (c) may be provided by SCO as Services
         pursuant to this Agreement. Services shall be contracted for under this
         Agreement when CALDERA requests the Services and a validated written
         Task Order, as defined in Section 2.2 below, is in place for the
         Services. Certain Services may be in the form of a Service Package.

2.2      Any Services and payments rendered under this Agreement shall be
         pursuant to a validated written task order ("Task Order"), which at a
         minimum shall specify (1) the nature of the Services to be done; (2)
         the period over which Services in support of the task are to be
         rendered; (3) a description of any Work Product to be created where
         applicable and other Deliverables to be delivered by SCO, (4) the
         specifications and other requirements for any such

                                                                         Page 2
<PAGE>   3

         Work Product and other Deliverables, (5) the fee for the Services to be
         rendered (which fee shall include payment for the Work Product and
         other Deliverables); and (6) any travel and living expenses that may
         apply. To the extent any Deliverables contain intellectual property
         rights of SCO or its suppliers, appropriate licenses to use such
         Deliverables will be attached as part of the Task Order. CALDERA shall
         provide SCO with information appropriate for SCO to effectively perform
         the Services. A Task Order shall be considered validated and in place
         when signed by an authorized representative of each party. A sample of
         such Task Order is attached as Exhibit A hereto and made a part hereof.
         A Task Order may be modified to include additional agreed upon items,
         as long as such modification is done in writing and signed by both
         parties.

2.3      CALDERA understands and acknowledges that SCO may need to perform, on a
         case by case basis, an assessment to determine the feasibility of any
         particular job. SCO agrees to deliver Services based on availability
         and capability of SCO Professional Services staff, and reserves the
         right to decline work offered by CALDERA.

2.4      SCO shall devote such time, resources and personnel to the performance
         of Services as are necessary for a satisfactory performance.

2.5      If CALDERA customers request consulting services outside of the CALDERA
         product or service set, CALDERA may refer those customers to SCO, as
         CALDERA deems appropriate.

2.6      Both parties retain the right to contract for similar services with
         other businesses or individuals. This relationship and Agreement are
         non-exclusive.

2.7      The Services will be performed by competent and qualified
         representatives of SCO in a professional and timely manner. In the
         event SCO hires a contractor to perform its obligations under this
         Agreement, it shall enter into appropriate agreements with them,
         sufficient to enable the parties to comply with all the terms of this
         Agreement. SCO will exercise its commercial best efforts to provide
         Services, Work Product and other Deliverables in a manner and time
         requested by CALDERA to meet its obligations to CALDERA's customers,
         and as agreed to by SCO. The Work Product and other Deliverables will
         conform to their respective specifications and descriptions. SCO will
         promptly correct any defect or error that comes to its attention,
         pursuant to Section 12.0 herein.

3.0      INDEPENDENT CONTRACTOR STATUS

3.1      CALDERA shall not control the details, manner or means by which SCO
         performs the Services in any material respect.

3.2      SCO and CALDERA expressly intend and agree that SCO shall be an
         independent contractor and under no circumstances is SCO an employee,
         agent, partner or joint venturer of CALDERA.

3.3      Both parties agree and understand that notwithstanding the operation of
         Section 3.2 with respect to the relationship between the parties,
         neither party shall represent itself to third parties to be the agent,
         employee, partner or joint venturer of the other. Further, neither
         party shall make any statements on behalf of or otherwise purporting to
         bind the other in contract or otherwise.

                                                                         Page 3
<PAGE>   4

4.0      COMPENSATION AND EXPENSES

4.1      For those Services which are offered by SCO in the form of Service
         Packages, CALDERA will purchase Service Packages from SCO at a twenty
         percent (20%) discount based on SCO's then-current list price for such
         Service Packages.

4.2      Payment for all other Services outside of the Service Packages will be
         billed at SCO's then-standard rates, with discounts for long-term
         engagements (i.e. engagements three (3) days or longer), or as
         otherwise mutually agreed to between the parties. However, for
         engagements which are three (3) days or longer in duration, CALDERA
         shall pay SCO no less than a minimum of one-hundred fifty dollars
         ($150) per hour for each of its lowest level consultant or two hundred
         fifty dollars ($250) per hour for each of its highest level consultant,
         plus reasonable travel and living expenses for Services provided as
         described in this Section 4.2.

4.3      Notwithstanding the foregoing, the parties may negotiate fees or
         discounts in any given Task Order, and the fees and discounts agreed to
         in a Task Order shall govern the Services or Service Packages of that
         Task Order.

4.4      Payment terms for Services and Service Packages under this Section 4.0
         shall be net thirty (30) days from date of receipt of invoice.

5.0      MARKETING

         CALDERA intends to announce a professional consulting services offering
         to the public. As part of this announcement, the parties agree to
         jointly issue the joint press announcement to be mutually agreed by
         both parties. The parties will further be entitled to make separate
         announcements.

6.0      TRAINING

         By ______________, SCO and CALDERA will agree on a cross training
         program for CALDERA products with the intention of training SCO
         representatives performing Services under this Agreement and any
         related Task Orders to the levels of knowledge desired by CALDERA. The
         cross training program will be delivered jointly by SCO and CALDERA.
         Each party shall bear its own expenses. CALDERA shall have no
         obligation to disclose any trade secrets or information it elects to
         withhold. However, CALDERA agrees that it will disclose any appropriate
         or relevant information necessary to SCO to effectively perform the
         Services under this Agreement and any related Task Orders.

7.0      CONFIDENTIAL INFORMATION

7.1      Both parties shall retain in confidence all information of the other
         party, its business, its customers, or its suppliers as appropriate,
         transmitted to either party under this Agreement which has been
         identified as being confidential or which by the nature of the
         information (including but not limited to source code) or the
         circumstances surrounding the disclosure should be treated as
         confidential ("Confidential Information"). Both parties shall refrain
         from using or exploiting any Confidential Information for any purpose
         or activity other than those necessary to or contemplated by this
         Agreement. Neither party shall disclose or facilitate the disclosure of
         Confidential Information to any third party and shall not copy,
         duplicate, reproduce, distribute or otherwise disseminate Confidential
         Information except as necessary to or contemplated by this Agreement.
         Both parties understand and agree that Confidential

                                                                         Page 4
<PAGE>   5

         Information constitutes valuable business assets of the parties, and
         their suppliers as appropriate, and that any unauthorized use or
         disclosure may cause irreparable damage to the parties and their
         suppliers. Within ten (10) calendar days after termination of this
         Agreement for any reason, both parties shall return to the other or
         destroy all whole and partial copies of Confidential Information
         regardless of the form such Confidential Information may be in,
         including but not limited to, machine images, machine-readable or
         printed forms.

7.2      This Section 7.0 shall not apply or shall cease to apply to information
         supplied: (1) if it has come into the public domain without breach of
         confidence; (2) which was known without restriction of disclosure prior
         to its first receipt of the same; or (3) which is hereafter rightfully
         furnished by a third party without restriction on disclosure; or (4) is
         required to be disclosed pursuant to any statutory requirement or court
         order. In the event Confidential Information is required to be
         disclosed by any statutory requirement or court order, the party being
         requested to provide such Confidential Information shall promptly
         notify the other party in writing and, upon request, shall assist that
         party in obtaining a protective order and opposing such disclosure.

8.0      INTELLECTUAL PROPERTY

8.1      (a) Copyrights. The parties intend that for copyright purposes any Work
         Product produced or delivered by SCO to CALDERA or for CALDERA
         customers in the provision of Services under this Agreement shall be
         considered a "work made for hire" as this term is defined in 17 USC Sec
         101 and used in 201(b), i.e., CALDERA and/or CALDERA's customer shall
         be the author thereof and the owner of the copyrights thereto. To the
         extent that the Work Product is not within said definition, then all
         copyrights in and to the Work Product shall be owned by CALDERA and/or
         CALDERA's customer and are hereby assigned by SCO to CALDERA and/or
         CALDERA's customer, free and clear of any lien, license or other
         encumbrance.

         (b) Exceptions. Notwithstanding the foregoing, SCO does not assign to
         CALDERA or CALDERA's customer any SCO Know-How or SCO Tools. "SCO
         Know-How" includes but is not limited to the methods, concepts,
         know-how, techniques and processes proprietary to SCO that SCO may use
         in delivery of Services or Work Product. "SCO Tools" includes but is
         not limited to the computer code, software tools, objects, and
         subroutines that may be included by SCO in the delivery of Services or
         Work Product. However, to the extent Work Product contains or embodies
         any SCO Know-How or SCO Tools, SCO hereby grants to CALDERA and/or
         CALDERA's customer a non-exclusive, perpetual, irrevocable, worldwide,
         fully paid-up license to execute, reproduce, display, perform, modify,
         merge, distribute, and otherwise use such SCO Know-How or SCO Tools but
         only to the extent necessary to effectively use Work Product.

8.2      CALDERA shall provide Work Product, Services, and/or Service Packages
         to its customers on terms that are not in conflict with this Agreement
         and/or any related Task Orders.

9.0      INDEMNIFICATION

9.1      SCO shall indemnify, defend and hold CALDERA and CALDERA's customers
         harmless from any and all damages, liabilities, costs and expenses,
         including attorneys' fees, incurred as the result of any claims,
         judgments, or adjudications that Work Product created by SCO for
         CALDERA or CALDERA's customers infringes on any patent, copyright,
         trademark, trade secret or other intellectual property right, or
         privacy right or other right of any third party,

                                                                         Page 5
<PAGE>   6

         provided that: (i) CALDERA shall promptly notify SCO in writing of such
         claims; (ii) SCO shall have control of the defense of any such action
         and the negotiations for its settlement and compromise; and (iii)
         CALDERA shall have the right to retain, at its own expense, its own
         attorneys to defend its interests. Without prejudice to the above, if
         the Work Product becomes, or is likely to become the subject of any
         claim of violation of a third party's intellectual property rights, SCO
         at its own expense shall use reasonable commercial efforts, and in its
         sole discretion shall procure for CALDERA and CALDERA's customers: (a)
         the right to continue using the Work Product; (b) replace or modify the
         Work Product so that the Work Product becomes non-infringing while
         providing equivalent functionality and performance; or (c) SCO may
         refund to CALDERA amounts paid for the Work Product, Services, and
         Service Packages (including travel and living expenses).

9.2      Any standard SCO product licensed as part of Deliverables to CALDERA or
         any of CALDERA's customers under this Agreement, shall be provided in
         accordance with SCO's then-current standard end user license agreement.

10.0     TERMINATION

10.1     The term of this Agreement shall be for an initial one year period from
         the Effective Date. The Agreement shall continue thereafter until
         written notice to terminate is provided by either party. Termination
         shall not affect any validated Task Orders or the Services, Work
         Product or Deliverables of such validated Task Orders, and this
         Agreement shall in its entirety continue in effect with respect
         thereto.

10.2     This Agreement may be terminated during the initial term in accordance
         with the following provisions: (i) by the mutual consent of the parties
         hereto; or (ii) if a party has breached the terms of this Agreement,
         this Agreement may be terminated by the non-breaching party on ten (10)
         days prior written notice to the breaching party providing the
         breaching party has not cured the breach within the ten (10) day notice
         period.

10.3     Notwithstanding the foregoing, any validated Task Order which has not
         been completed upon termination of the Agreement for convenience, shall
         be completed by SCO and paid for by CALDERA, unless otherwise agreed by
         the parties.

10.4     (a) CALDERA may terminate the Services under any Task Order at any
         time. Upon receipt of notice of such termination, SCO will cease such
         Services and will deliver to CALDERA the Work Product and other
         Deliverables on an "as completed" and "as is" basis. SCO will be
         entitled to prorated compensation based on Services performed and/or
         Work Product created to the date of such notice of termination.
         Termination under this Section 10.5 shall not effect the continuation
         of other Task Orders or this Agreement.

         (b) In the event that all of the following occur: (a) a cancellation of
         Services by CALDERA, (b) a cancellation of CALDERA's contract or
         services by CALDERA's CUSTOMER that correspond to the cancelled
         Services, and (c) payment by CALDERA's CUSTOMER to CALDERA of a
         cancellation fee in addition to and beyond payment for Services, Work
         Product, or Deliverables, then CALDERA shall share the cancellation fee
         with SCO on a reasonable pro rata basis.

10.5     Sections 7, 8, 9, 10.3, 10.4, 11, 12 and 13 shall survive any
         termination of this Agreement.

                                                                         Page 6
<PAGE>   7

11.0     NOTICE

         Any notice required or permitted hereunder shall be in writing and sent
         to the address first written above or to such other addresses as the
         parties may from time to time specify, by United States Mail, First
         Class postage prepaid, by Federal Express, DHL or similar courier or by
         hand delivery.

12.0     LIMITATION OF LIABILITY

         NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY CONSEQUENTIAL,
         SPECIAL OR INDIRECT DAMAGES ARISING OUT OF THIS AGREEMENT. DUE TO THE
         NATURE OF OPEN SOURCE, AND AS PART OF A DEPLOYED SOLUTION, THERE MAY BE
         THIRD PARTY COMPONENTS PRESENT THAT ARE NOT COMPATIBLE WITH THE SCO
         WORK PRODUCT. THEREFORE, WHILE SCO AGREES TO PERFORM ALL WORK TO THE
         SPECIFICATIONS AGREED TO IN THE TASK ORDER, SCO CANNOT GUARANTEE THE
         PERFORMANCE OF WORK PRODUCT that IS used in conjunction with THIRD
         PARTY COMPONENTS OR COMPONENTS RELATED TO OPEN SOURCE. SCO AND CALDERA
         MAKE NO WARRANTY, EXPRESS, IMPLIED OR STATUTORY, NOT EXPRESSLY SET
         FORTH IN THIS AGREEMENT OR A TASK ORDER. SCO DISCLAIMS ANY IMPLIED OR
         STATUTORY WARRANTY OF, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR
         PURPOSE OF THE WORK PRODUCT, SERVICES, OR SERVICE PACKAGES CONTEMPLATED
         UNDER THIS AGREEMENT.

         SCO'S SOLE LIABILITY, AND CALDERA'S EXCLUSIVE REMEDY UNDER THIS
         AGREEMENT AND/OR ANY RELATED TASK ORDERS SHALL BE AS FOLLOWS: SCO MAY
         RE DO ANY WORK PRODUCT OR REPEAT ANY SERVICES OR SERVICE PACKAGES WHICH
         HAVE BEEN IMPROPERLY PERFORMED, OR, IN SCO'S SOLE DISCRETION, SCO MAY
         REFUND TO CALDERA ANY MONIES PAID FOR SUCH WORK PRODUCT, SERVICES OR
         SERVICE PACKAGES, INCLUDING TRAVEL AND LIVING EXPENSES DIRECTLY RELATED
         TO SAID WORK PRODUCT, SERVICES OR SERVICE PACKAGES.

         CALDERA HEREBY AGREES THAT THE LANGUAGE AND LIMITATIONS OF LIABILITY IN
         THIS SECTION 12.0 WILL BE INCORPORATED AND INCLUDED IN ALL AGREEMENTS
         WITH CALDERA'S CUSTOMERS.

13.0     MISCELLANEOUS

13.1     Both parties warrant that they have the unrestricted right, power, and
         authority to enter into this Agreement.

13.2     Except as otherwise expressly provided in this Agreement, the
         provisions hereof shall inure to the benefit of, and be binding upon,
         the successors and assigns of the parties hereto.

13.3     Neither party shall assign any rights or delegate any obligations
         hereunder without the prior written consent of the other.

13.4     This Agreement shall be governed by and construed in accordance with
         the laws of the State of Utah, as applied to agreements performed
         entirely within the State of Utah by domiciles thereof. In the event of
         any litigation between the parties, the litigation shall be conducted
         exclusively in state or federal court in Utah and such courts shall
         have exclusive jurisdiction and venue over any dispute arising out of
         this Agreement. SCO and CALDERA hereby consent to the jurisdiction and
         venue of such courts. If any provision of this Agreement is invalid
         under any applicable statute or rule of law, such invalidity shall not
         effect any other provision of this Agreement and the invalid provision
         shall be limited or construed as necessary to make it valid.

                                                                         Page 7
<PAGE>   8

13.5     This Agreement may be executed in counterparts, each of which shall be
         deemed to be an original, but all of which together shall constitute
         one and the same instrument.

13.6     The failure of either party hereto to enforce any right under this
         Agreement shall not be construed to be a waiver of that right, or of
         damages caused thereby or of any other rights under this Agreement.

13.7     This Agreement and the Exhibits hereto encompass the entire Agreement
         of the parties.

13.8     The terms of this Agreement may be modified only in a written
         instrument signed by SCO and CALDERA.

13.9     This Agreement has been negotiated by the parties hereto and their
         respective counsel. This Agreement will be fairly interpreted in
         accordance with its terms and without strict construction in favor of
         or against either party.

13.10    The persons signing below represent that they are duly authorized to
         execute this Agreement for and on behalf of the Party for whom they are
         signing.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date last set forth below.

THE SANTA CRUZ OPERATION, INC.                    CALDERA SYSTEMS, INC.

BY:                                               BY:
   ---------------------------                       --------------------------

NAME:                                             NAME:
     -------------------------                         ------------------------

TITLE:                                            TITLE:
      ------------------------                          -----------------------

DATE:                                             DATE:
    --------------------------                         ------------------------

                                                                         Page 8

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