Document:

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                                                                    EXHIBIT 10.7

                         SOFTWARE DISTRIBUTION AGREEMENT

   This Software Distribution Agreement ("Agreement"), effective as of the 17th
day of March, 2003 (the "Effective Date"), is entered into by and between
Lindows, Inc., a Delaware corporation ("Supplier"), and Livin' On The Edge, Co.,
Ltd., a Japanese corporation ("Distributor").

                                    RECITALS

A. Distributor is in the business of licensing and distributing software
products in Japan, and desires to distribute Supplier's Product (as defined
below) in Japan.

B. Supplier is in the business of developing and licensing software products and
services, and desires to authorize Distributor to distribute the Product (as
defined below) in Japan. The parties agree as follows:

1.    DEFINITIONS

      (a) "Customer" shall mean an end-user who purchases the Product within the
Territory.

      (b) "Documentation" shall mean the end-user manuals relating to the
Software and services and related materials provided by Supplier to Distributor
hereunder.

      (c) "Product" Product shall mean the Software, services, and Documentation
listed on Exhibit "A" attached hereto, including any modifications,
improvements, alterations, translations, localizations, innovations, or changes
of any kind performed on the Software or Documentation by Distributor or agents,
sub-licensees, contractors, or employees of Distributor.

      (d) "Release Date" shall mean the earlier of (1) the actual date on which
Distributor first releases the Localized Product for sale, or (2) 60 days after
the Effective Date.

      (e) "Software" shall mean the computer program(s) listed in Exhibit A in
machine executable object code format.

      (f) "Territory" shall mean the Nation of Japan.

      (g) "Updates" shall mean versions of the Software, including version
patches, subsequently released to the public for the purpose of correcting
errors and fixing software bugs that Supplier generally makes available to its
customers free of charge. "Updates" does not include subsequent versions of the
Software that contain new features or functionality, or which are considered a
new software product.

2.    APPOINTMENT

      Supplier hereby appoints Distributor, and Distributor hereby accepts the
appointment, as Supplier's sole and exclusive distributor (subject to loss of
exclusivity discussed in Section 6) to distribute the Product to Customers in
the Territory. The period of this grant shall begin on the Release Date and
shall continue for 365 calendar days or until the termination of this Agreement.
This grant shall include the following permitted uses:

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                                                                    EXHIBIT 10.7

      (a) Copying the Software from the Golden Master into copies of CD Rom
disks and repackaging such Software for distribution for retail sale within the
Territory.

      (b) Distribution of the Product through retail locations within the
Territory or via electronic transfer through servers controlled and maintained
by Supplier, through an Internet domain address jointly chosen by Distributor
and Supplier.

      (c) Translating and localizing the English version of the Product into
appropriate Japanese language. Supplier reserves the sole and exclusive right to
terminate this Agreement in the event that the Product, as translated and
localized by the Distributor, does not satisfy Supplier's reasonable
requirements. Provided, however, that Supplier shall provide reasonable notice
to Distributor with regard to this subsection and Distributor shall have ten
(10) days to respond to such notice. Distributor shall have forty-five (45) days
after responding to the notice to satisfy such requirement(s).

      (d) Authorizing dealers to distribute the Product on behalf of
Distributor, provided said dealers distribute the Product consistent with the
limitations, terms, and conditions contained herein.

      (e) Sublicensing the Product to Customers pursuant to an end user license
agreement (the "End User Agreement") with terms consistent with the terms set
forth in Exhibit "B" attached hereto.

      (f) Using the Product for the purpose of providing customer support
services, demonstrations and marketing purposes.

3.    OBLIGATIONS OF DISTRIBUTOR

      (a) Diligence. Distributor shall use commercially reasonable efforts to
promote the marketing and distribution of the Product to realize the maximum
sales potential for the Product in the Territory. Except as expressly set forth
herein, Distributor shall be solely responsible for all costs and expenses
related to the advertising, marketing, promotion, and distribution of the
Product and for performing its obligations hereunder.

      (b) Repackaging. Any retail repackaging of the Product must be approved by
Supplier before the distribution of the Product in the Territory, provided,
however, that such approval shall not be unreasonably withheld.

      (c) Translation; Localization. Distributor shall translate or localize the
Product into the Japanese language, provided, however, that Supplier retains all
ownership rights in and to such translated/localized versions of the Product
(the "Localized Product"), subject to the termination provisions set forth in
Section 2(c), above. Distributor shall provide a copy of any and all publicly
released versions of the Product containing such translations/localizations
within five (5) days of the Release Date.

      (d) Product Support.

            (i) Distributor shall provide reasonable technical support to
Customers, including without limitation (x) maintaining trained and competent
technical and engineering support personnel for the Product who are sufficiently
knowledgeable with respect to the Product to answer Customer questions regarding
the use and operation of Product, (y) responding promptly to requests for
technical support from Customers, and (z) providing technical support services
to address and resolve Customers' support requests with respect to the Product.

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                                                                    EXHIBIT 10.7

            (ii) Distributor shall ensure that all Customer questions regarding
the use or operation of Product are initially addressed to and answered by
Distributor. Unless otherwise agreed in writing by Supplier, Distributor shall
not represent to any third party that Supplier is available to answer questions
from any Customer directly.

      (e) End User License. Prior to providing any Customer with any Software,
Distributor shall ensure that each Customer has read and agreed to the terms and
conditions of the End User Agreement contained in each Software unit .
Distributor shall not conduct, support, or permit, and shall not authorize any
third party to conduct, support, or permit, the copying, modification,
alteration, reverse engineering, disassembly or decompiling of the Product.

4.    OBLIGATIONS OF SUPPLIER

      (a) Product Support and Training. Supplier shall provide Distributor with
engineering and technical support for the Product, including providing
corrections or workarounds to correct defects, bugs, or errors in the Product.
In the event a critical defect is discovered, Supplier agrees to use best
efforts to correct the defect and provide such correction within fifteen (15)
calendar days after notice thereof. A critical defect is generally defined as
one which causes the Product not to function for which there is no known
workaround. Supplier shall maintain a telephone number and technicians to
receive calls from Distributor's technical staff for so long as Supplier has
technicians responding to product support calls, currently 8 a.m. to 6 p.m.
Pacific Standard Time (USA). Supplier shall also provide Distributor with a
pager number pursuant to which Supplier's technician shall respond within four
(4) hours to any page received from Distributor, twenty-four (24) hours a day
seven (7) days a week concerning problems and questions. Supplier shall respond
to email questions regarding product support and training sent by Distributor
within twenty-four (24) hours. Supplier shall also provide training with respect
to the use, reproduction, installation and distribution of the Software as
contemplated under the Agreement.

      (b) E-commerce transaction services and infrastructure. Supplier shall
provide Distributor with such e-commerce transaction services and infrastructure
necessary for the sale of the Product through any Internet web site through
which the parties agree to distribute the Product.

      (c) Marketing Support. Supplier shall provide Distributor with reasonable
marketing support, including providing reasonable quantities of Supplier's
advertising and promotional materials, pricing information and technical data
related to the Product. Supplier may also from time to time provide, at
Supplier's sole discretion, monetary support for certain marketing and
promotional activities involving the Product, such as exhibitions, conventions,
trade shows and advertisements.

      (d) Japanese Language Click-N-Run Warehouse Aisle. Within thirty (30) days
of the Effective Date of this Agreement, Supplier shall establish and maintain
an aisle within the Click-N-Run Warehouse containing references to software
applications which may be of interest to Japanese-speaking end-users. Supplier
exercises its sole and absolute discretion as to which software application
titles to place within the Japanese language aisle.

      (e) Software and Click-N-Run Memberships. Within fifteen (15) days of the
Effective Date of this Agreement, Supplier shall provide the following to
Distributor: (x) a golden master for the LindowsOS ;(y) a golden master for the
Click-N-Run Express; (z) the Click-N-Run Membership identification numbers for
the Click-N-Run Warehouse in the amount consistent with the number of
memberships ordered by Distributor as described in Section 6(a). In the event
that Distributor purchases additional memberships, or makes additional payment
pursuant to Section 6(a) below, Supplier shall provide the membership
identification numbers within ten (10) days of receipt of Distributor's payment
for such memberships.

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                                                                    EXHIBIT 10.7

      (f) Software Updates. Supplier shall make available to Distributor for
distribution any Updates to the Software within ten (10) days after release to
the public. Supplier shall deliver a golden master for each Update to
Distributor.

      (g) Post-termination Obligations. After the termination of this Agreement,
Supplier shall continue to provide Distributor with engineering and technical
support pursuant to Section 4(a) at no cost for one (1) year, and at an hourly
rate of $150 per hour thereafter. After the termination of this Agreement,
Supplier shall continue to provide warranty coverage to Customers of the Product
up to the expiration of the Customers' warranty period. Supplier shall further
continue to provide Click-N-Warehouse membership privileges for Customers up to
the expiration of such membership privileges.

5.    PRICE/PRICE CHANGE

      (a) Price. Distributor shall pay Supplier $50.00 ("Wholesale Price") for
each Product sold, less any discounts for volume purchases as described
hereinbelow. Distributor shall be entitled to a credit against future payments
to Supplier for any amounts previously paid to Supplier for Product that is
returned by Customers. Distributor shall maintain records of any and all
Customer returns, including the name, address, telephone number, and e-mail
address of the Customer returning the Product, the date of the return and reason
for the return. Distributor shall maintain such records for a period of one (1)
year after termination of this agreement and shall permit inspection and copying
of such records by Supplier upon ten (10) days notice by Supplier.

      (b) Price Discounts. Provided Distributor makes timely payment for minimum
purchases described hereinbelow, Distributor shall be entitled to a US $5.00 per
unit discount of the Wholesale Price for all purchases ("Discount Price").

      (c) Click-N-Run Memberships. For each Click-N-Run stand-alone membership
or membership renewal sold by Distributor through the e-commerce infrastructure
provided for in Section 4(b), Supplier shall pay Distributor, in regular monthly
intervals, the difference between full purchase price paid (less any processing
or transaction fees charged by third party ecommerce processors) and $45.00. All
Click-N-Run membership renewals or stand-alone memberships sold pursuant to this
Agreement shall be included in the Minimum Product Purchase amounts set forth in
Section 6(a).

      (d) Price Decreases. The parties may negotiate in good faith a discount to
the Price in order to allow Distributor to be competitive in obtaining certain
distribution accounts, such as accounts with OEMs.

      (e) Taxes. Prices do not include any Japanese taxes, including franchise,
sales and use taxes, if any. Distributor shall be solely responsible for payment
of any and all such taxes or obligations, including any fines, penalties, or
interest relating thereto.

6.    MINIMUM PURCHASE REQUIREMENT AND EXCLUSIVITY

      (a) In order to maintain Distributor's rights to exclusive distribution of
the Product as described hereinabove, and in order to obtain the Discount Price
for the Product, Distributor must make purchases of the minimum amounts of the
Product from Supplier as provided in the table below:

<TABLE>
<CAPTION>
A. MINIMUM PRODUCT PURCHASE      B. TOTAL PAYMENT        C. PAYMENT DUE DATE
---------------------------      ----------------        -------------------
<S>                              <C>                 <C>
1.             15,000 Units           $675,000       10 days from Effective Date
2.             20,000 Units           $900,000       180 days from Release Date
</TABLE>

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                                                                    EXHIBIT 10.7

      (b) In the event that Distributor has satisfied the minimum purchase
requirements described above, Supplier shall grant Distributor a U.S. $5.00
discount from the price set forth in Section 5(a) for any additional purchases
of the units.

      (c) In the event that Supplier fails to make payments to as described in
the table provided in Section 6(a), Distributor shall no longer be entitled to
the exclusive rights granted in Section 2, including subsections (a)-(f), above,
but shall be entitled to the non-exclusive right to distribute the Product as
described in Section 2, including subsections (a)-(f), above.

7.    PAYMENT TERMS

      (a) Payment Terms. All payments shall be in U.S. Dollars via certified
check or electronic wire transfer and shall be submitted together with an
accounting statement indicating all sales of the Product for such period.
Provided, however, that all payments made by Supplier to Distributor pursuant to
sales processed by Supplier under Section 7(b) shall be made in Japanese yen.

      (b) Payments for Sales Processed by Supplier. For all retail sales
occurring through the e-commerce infrastructure provided by Supplier and
discussed in Section 4(b), Customers shall make payments directly to Supplier or
Supplier's agent designated to process such ecommerce transactions. Supplier
shall provide Distributor an accounting of and reimbursement for all such sales
as follows:

            (i) Retail Sales of Minimum Product Purchases: For each retail sale
of Product purchased pursuant to any Minimum Product Purchase (as defined in
Column A(1), and (2), in Section 6(a), above) for which Distributor has made
timely payment pursuant to Section 6(a), above, Supplier shall pay Distributor,
in regular monthly intervals, the full purchase price paid by such Customers,
less any processing or transaction fees charged by third party ecommerce
processors.

            (ii) Retail Sales in Excess of the Minimum Product Purchases: For
each retail sale of Product to Customers which is a retail sale of Product
purchased in excess of any Minimum Product Purchase (as defined in Column A(1)
and (2) in Section 6(a), above), Supplier shall pay Distributor, in regular
monthly intervals, the difference, if any, between the full purchase price paid
by such Customers (less any processing or transaction fees charged by third
party e-commerce processors) and the Discount Price.

            (iii) Retail Sales for Non-Minimum Product Purchases: If the
Distributor does not timely purchase the Minimum Product Purchase Amounts set
forth in Columns A(1) and (2) of Section 6(a), Supplier shall pay Distributor,
in regular monthly intervals, the difference, if any, between the full purchase
price paid by Customers (less any processing or transaction fees charged by
third party e-commerce processors) and the Wholesale Price.

      (c) Payments for Sales Processed by Distributor. For all sales of the
Product to Customers, retail outlets, OEMs, or otherwise, which occur outside of
the e-commerce infrastructure provided for in Section 4(b), above, payments
shall be made to Distributor. For all such sales which, in combination with all
other sales by Distributor, are in excess of the Minimum Product Purchase (as
defined in Columns A(1) and (2) in Section 6(a), above) and for which
Distributor has made timely payment pursuant to Section 6(a), above, Distributor
shall pay Supplier, in regular monthly intervals, the Discount Price for each
unit sold. If the Distributor does not timely purchase the Minimum Product
Purchase Amounts set forth in Columns A(1) and (2) of Section 6(a), Distributor
shall pay Supplier, in regular monthly intervals, the Wholesale Price for each
unit sold. Distributor shall provide Supplier an accounting of all such sales at
regular monthly intervals.

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      (d) Notices. Distributor shall maintain an accounting and all records of
sales of the Product and shall notify Supplier in writing when it has sold
through the Minimum Product Purchase amounts set forth in Section 6(a), above

      (e) OEM Distribution. The parties are currently negotiating an agreement
pursuant to which Supplier shall grant Distributor the right to distribute the
Product to OEMs. In the event that the Parties execute such an agreement for OEM
distribution, all units sold pursuant to such agreement shall be included in the
minimum product purchase amounts set forth in Section 6(a).

      (f) Books and Records; Audit. Both parties shall maintain complete books,
records and accounts relevant to computation and accounting for amounts payable
under this Agreement. Each party agrees to allow an independent certified public
accountant the right to audit and examine such books, records and accounts
during normal business hours no more than once per year upon ten (10) days
notice at such examining party's expense, to verify the accuracy of the reports
and payments made under this Section 7.

8.    LIMITED WARRANTY

      (a) Limited Warranty. Subject to the provisions of this Section 8 below,
Supplier warrants that for a period of sixty (60) days ("Warranty Period") the
Software will conform to the specifications set forth in the Documentation,
manuals and any relevant data sheet or promotional literature provided by
Supplier. In the event that the Software fails to conform to such specifications
during the Warranty Period, Supplier shall use best efforts to repair and
correct such errors so that the Software conforms to such specifications.

      (b) Disclaimer of Warranties. EXCEPT AS EXPRESSLY PROVIDED IN SECTION 8(a)
ABOVE, SUPPLIER MAKES NO WARRANTIES OR CONDITIONS, EXPRESS, STATUTORY, IMPLIED,
OR OTHERWISE, AND SUPPLIER SPECIFICALLY DISCLAIMS THE IMPLIED WARRANTIES AND
CONDITIONS OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
NOTWITHSTANDING THE FOREGOING, SUPPLIER DOES NOT EXCLUDE LIABILITY TO THE EXTENT
THAT SUCH LIABILITY MAY NOT BE EXCLUDED OR LIMITED BY LAW.

      (c) Distributor Limitations. Except to the extent required by applicable
law, Distributor shall not grant to its Customers a warranty of greater scope or
protection than the warranty (including the limited remedy, exclusions, and
limitation of liability) set forth in this Section 8 and Section 13 below.

      (d) Customer Claims. Distributor shall ensure that all Customer claims for
warranty, repair, or replacement are addressed to Distributor and not to
Supplier.

9.    TERM AND TERMINATION

      (a) Term. This Agreement shall commence upon the Effective Date and
continue in full force and effect for a fixed term of twelve (12) months after
the Release Date, unless earlier terminated in accordance with the provisions of
this Agreement and shall be automatically renewed for an additional one (1) year
period unless either party provides written notice of its intention to terminate
this Agreement ninety (90) days prior to the expiration of this Agreement.
During the second year (renewal period) of this Agreement, Distributor shall be
entitled to nonexclusive distribution of the Product, and shall be entitled to
exclusive distribution rights as set forth herein only upon purchase of
additional Minimum Product Purchase amounts substantially identical to the
amounts, pricing, and payment timing set forth in Section 6(a). If a party is in
material breach of this Agreement and has failed to cure such material breach

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                                                                    EXHIBIT 10.7

within thirty (30) days after receiving written notice from the other party of
such material breach, the party not in breach may terminate this Agreement.
Distributor may also terminate this Agreement in accordance with Section 11(c).
Without limiting the foregoing, either party may terminate this Agreement
effective upon written notice to the other party stating such party's intention
to terminate, in the event the other party:

            (i) ceases to function as a going concern or to conduct operations
in the normal course of business;

            (ii) has a petition filed by or against it under any bankruptcy or
insolvency law which petition has not been dismissed or set aside within sixty
(60) days of its filing; or

            (iii) fails to perform any of its obligations under this Agreement
so as to be in default hereunder and fails to cure such default within thirty
(30) days after written notice of such default.

      (b) Customer Support. Distributor may continue to use the Product after
termination of this Agreement to provide customer support services set forth in
Section 3(d).

      (c) No Liability for Termination. Except as expressly required by law, in
the event of termination of this Agreement by either party in accordance with
any of the provisions of this Agreement, neither party shall be liable to the
other, because of such termination, for compensation, reimbursement or damages
on account of the loss of prospective profits or anticipated sales or on account
of expenditures, inventory, investments, leases or commitments in connection
with the business or goodwill of Supplier or Distributor. Termination shall not,
however, relieve either party of obligations incurred prior to the termination.

      (d) Survival. Distributor may sell Product existing in its inventory as of
the effective date of termination of this Agreement for a period of ninety (90)
days after the effective date of such termination ("Wind-Down Period"). During
the Wind-Down Period, the provisions of Sections 7 and 10 shall survive. In
addition to the provisions set forth in this Section 9(d), the following
provisions shall survive expiration or any termination of this Agreement:
Sections 4(g), 8, 9(b)-(e), 10, 11, 13, 15 and the last sentence in Section
12(b).

      (e) Return of Materials. All Product, trademarks, marks, trade names,
patents, copyrights, designs, drawings, formulas or other data, photographs,
samples, literature, and sales and promotional aids of every kind shall remain
the property of Supplier. Within thirty (30) days after the effective date of
termination of this Agreement, Distributor shall at Supplier's option destroy
all tangible items bearing, containing, or contained in, any of the foregoing,
in its possession or control and provide written certification of such
destruction, or prepare such tangible items for shipment to Supplier or
Supplier's designee, as Supplier may direct, at Supplier's expense. Distributor
shall not make or retain any copies of any Confidential Information (as defined
in Section 10, below) which may have been entrusted to it.

10.   CONFIDENTIALITY AND PROPRIETARY RIGHTS

      (a) Confidential Information. The term "Confidential Information" means
any information disclosed by one party to the other pursuant to this Agreement
that is in written, graphic, machine readable or other tangible form and is
marked "Confidential", "Proprietary" or in some other manner to indicate its
confidential nature. Confidential Information may also include oral information
disclosed by one party to the other pursuant to this Agreement, provided that
such information is designated as confidential at the time of disclosure and is
reduced to writing by the disclosing party within a

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                                                                    EXHIBIT 10.7

reasonable time (not to exceed 30 days) after its oral disclosure, and such
writing is marked in a manner to indicate its confidential nature and delivered
to the receiving party.

      (b) Confidentiality. Each party shall treat as confidential all
Confidential Information of the other party, shall not use such Confidential
Information except to exercise its rights and perform its obligations under this
Agreement herein, and shall not disclose such Confidential Information to any
third party. Without limiting the foregoing, each of the parties shall use at
least the same degree of care it uses to prevent the disclosure of its own
confidential information of like importance, to prevent the disclosure of
Confidential Information of the other party. Each party shall promptly notify
the other party of any actual or suspected misuse or unauthorized disclosure of
the other party's Confidential Information.

      (c) Exceptions. Confidential Information excludes information that: (i)
was in the public domain at the time it was disclosed or has become in the
public domain through no fault of the receiving party; (ii) was known to the
receiving party, without restriction, at the time of disclosure, as demonstrated
by files in existence at the time of disclosure; (iii) is disclosed with the
prior written approval of the disclosing party; (iv) was independently developed
by the receiving party without any use of the Confidential Information; (v)
becomes known to the receiving party, without restriction, from a source other
than the disclosing party, without breach of this Agreement, by the receiving
party; or (vi) is disclosed generally to third parties by the disclosing party
without restrictions similar to those contained in this Agreement. The receiving
party may disclose the other party's Confidential Information to the extent such
disclosure is required by order or requirement of a court, administrative
agency, or other governmental body, but only if the receiving party provides
prompt notice thereof to the disclosing party to enable the disclosing party to
seek a protective order or otherwise prevent or restrict such disclosure.

      (d) Proprietary Rights. Distributor agrees that Supplier retains all of
its right, title and interest in and to all patent rights, trademarks, trade
names, inventions, copyrights, know-how and trade secrets relating to the
Product, including modifications, translations, and/or localizations of the
Product performed by Distributor, or the product lines that include the Product,
and the design, manufacture, operation or service of the Product. To the extent
that the Product contains or incorporates intellectual property of parties other
than Supplier, Distributor agrees to respect such third party rights and abide
by any terms and conditions contingent upon grant and use of such rights, and
that such third parties retain any such rights, if applicable. The use by
Distributor of any of these property rights is authorized only for the purposes
herein set forth and upon termination of this Agreement for any reason such
authorization will cease, subject to Section 9(d). Distributor shall not (and
shall require that its Customers do not) remove, alter, cover or obfuscate any
copyright notices or other proprietary rights notices placed or embedded by
Supplier on or in any Product.

11.   PATENT/COPYRIGHT/TRADEMARK WARRANTY AND INDEMNIFICATION

      (a) Indemnity. Supplier represents and warrants that the Product or any
part thereof, and any of its patents, copyrights, trademarks, trade secrets or
other proprietary rights related thereto, do not violate or infringe any patent,
copyright, trademark, trade secret or other proprietary right of any third
party. Supplier shall defend and hold Distributor harmless against any loss,
liability or expense (including reasonable attorney's fees) paid to third
parties arising from any action, proceeding or claim brought or threatened
against Distributor alleging that the Product infringes any third party's
patent, copyright, trademark (provided Distributor adheres to the Branding
Guidelines provided by Supplier), trade secret or other intellectual property
right (an "Action"). Supplier will have sole control of any such Action or
settlement negotiations, and Supplier agrees to pay, subject to the limitations
hereinafter set forth, any final judgment entered against Distributor on such
issue in any such Action defended by Supplier. Distributor shall notify Supplier
promptly in writing of such Action, give Supplier authority to proceed as
contemplated herein, and give Supplier proper and full information and
assistance to settle

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                                                                    EXHIBIT 10.7

and/or defend any such Action. If it is adjudicatively determined, or if
Supplier believes, that the Product, or any part thereof, infringe any patent,
copyright or trademark (provided Distributor adheres to the Branding Guidelines
provided by Supplier), or if the sale or use of the Product, or any part
thereof, is, as a result, enjoined, then Supplier may, at its election, option,
and expense: (i) procure for Distributor the right under such patent, copyright
or trademark to sell or use, as appropriate, the Product or such part thereof;
(ii) modify the Product or part thereof; or (iii) cease distribution of the
Product, or part thereof, and refund any payments (including any minimum product
purchases under Section 6) paid by Distributor for such Product.

      (b) Modifications to Branding Guidelines. Supplier reserves the right to
modify the Branding guidelines from time to time, and shall give Distributor
notice of any such modifications. Within thirty (30) days of receipt of notice
of any modifications to the Branding guidelines, Distributor shall act to assure
that all Product, Product marketing materials or other promotional matter
complies with the Branding Guidelines. If at any time Distributor fails to
follow the Branding Guidelines, Lindows.com shall be relieved of any obligation
set forth in Section 10 relating to or resulting from such failure.

      (c) LINDOWS Trademarks. Notwithstanding the terms in Section 11(a), in the
event that any trademark or service mark containing the terms "Lindows" or
"LindowsOS" are held by a court to infringe upon the trademark or service mark
of a third party, the use of such trademarks or service marks are enjoined by a
court, or Supplier changes such trademarks or service marks in connection with a
third party infringement action, claim or dispute, Distributor shall have the
option to immediately terminate this Agreement and Supplier shall (i) indemnify
Distributor for all liability and costs in connection with such infringement
(including damages and reasonable attorneys fees) and (ii) shall also remunerate
Distributor for the difference between the amount of any advance payments paid
to Supplier under Section 6 and the amount of payments received from Customers
for Product purchased from Supplier by Distributor pursuant to such advance
payments.

12.   USE OF TRADEMARKS/TRADE NAMES

      (a) Trademarks. During the term of this Agreement, Distributor shall have
the right to indicate to the public that it is an authorized distributor of
Supplier's Product and to advertise such Product under the trademarks, marks,
and trade names of Supplier and in the promotion and distribution of the
Product; provided, however, that upon thirty (30) days prior written notice to
Distributor, Supplier may substitute alternative marks for any or all of such
Supplier's trademarks used by Distributor. All representations of Supplier's
trademarks that Distributor intends to use shall first be submitted to Supplier
for approval (which shall not be unreasonably withheld) of design, color and
other details or shall be exact copies of those used by Supplier. In addition,
Distributor shall fully comply with all reasonable guidelines, if any,
communicated by Supplier concerning the use of Supplier's trademarks.

      (b) Use. Distributor shall not alter or remove any of Supplier's
trademarks affixed to the Product by Supplier. Except as set forth in this
Section 12, nothing contained in this Agreement shall grant or shall be deemed
to grant to Distributor any right, title or interest in or to Supplier's
trademarks. All uses of Supplier's trademarks will inure solely to Supplier and
Distributor shall obtain no rights with respect to any of Supplier's trademarks,
other than the right to distribute Product as set forth herein, and Distributor
irrevocably assigns to Supplier all such right, title and interest, if any, in
any of Supplier's trademarks. At no time during or after the term of this
Agreement shall Distributor challenge or assist others to challenge Supplier's
trademarks (except to the extent expressly prohibited by applicable law) or the
registration thereof or attempt to register any trademarks, marks or trade names
confusingly similar to those of Supplier. Upon termination of this Agreement,
Distributor shall immediately cease to use all Supplier's trademarks (other than
for any remaining inventory to be sold during the "Wind Down Period").

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                                                                    EXHIBIT 10.7

13.   LIMITATION OF LIABILITY

      IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR LOST PROFITS, COST OF
PROCUREMENT OF SUBSTITUTE GOODS, OR ANY OTHER SPECIAL, RELIANCE, INCIDENTAL, OR
CONSEQUENTIAL DAMAGES, HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY WHETHER
BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE. THE FOREGOING
LIMITATIONS SHALL APPLY REGARDLESS OF WHETHER SUCH PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE
OF ANY LIMITED REMEDY STATED HEREIN. NEITHER PARTY'S LIABILITY ARISING OUT OF OR
RELATING TO THIS AGREEMENT SHALL EXCEED THE AGGREGATE AMOUNTS PAID BY
DISTRIBUTOR TO SUPPLIER HEREUNDER. NOTWITHSTANDING THE FOREGOING, THIS SECTION
13 SHALL NOT BE APPLICABLE WITH REGARD TO ANY BREACH OR LIABILITY UNDER SECTIONS
10 AND 11.

14.   COMPLIANCE WITH LAWS

      (a) Export Control. Distributor understands and acknowledges that Supplier
is subject to regulation by agencies of the United States Government, including,
but not limited to, the U.S. Department of Commerce, which prohibit export or
diversion of certain Product and technology to certain countries. Any and all
obligations of Supplier to provide the Product, as well as any other technical
information or assistance shall be subject in all respects to such United States
laws and regulations as shall from time to time govern the license and delivery
of technology and Product abroad by persons subject to the jurisdiction of the
United States, including the Export Administration Act of 1979, as amended, any
successor legislation, and the Export Administration Regulations issued by the
Department of Commerce, Bureau of Export Administration. Distributor agrees to
cooperate with Supplier including without limitation, providing required
documentation, in order to obtain export licenses or exemptions therefrom.
Distributor warrants that it will comply with the Export Administration
Regulations and other United States laws and regulations governing exports in
effect from time to time. Distributor further agrees not to resell Product to
any organization, public or private, which engages in the research or production
of military devices, armaments, or any instruments of warfare, including
biological, chemical and nuclear warfare.

      (b) Governmental Approvals. Distributor represents and warrants that it
has obtained all required approvals of the government within the Territory in
connection with this Agreement and that the provisions of this Agreement and the
rights and obligations of the parties hereunder, are enforceable under the laws
within the Territory. Supplier represents and warrants that it has obtained all
required approvals of the United States government in connection with this
Agreement and that the provisions of this Agreement and the rights and
obligations of the parties hereunder, are enforceable under the laws of the
United States of America.

15.   MISCELLANEOUS PROVISIONS

      (a) Independent Contractors. The relationship of Supplier and Distributor
established by this Agreement is that of independent contractors, and neither
party is an employee, agent, partner or joint venturer of the other.

      (b) Assignment. This Agreement will be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns;
provided, however, that neither party shall assign any of its rights,
obligations, or privileges (by operation of law or otherwise) hereunder without
the prior written consent of the other party.

                                                                         Page 10
<PAGE>
                                                                    EXHIBIT 10.7

      (c) Indemnity. Except for warranty claims for which Supplier is liable
under Section 8 and infringement claims covered by Section 11, Distributor
agrees to indemnify and hold Supplier harmless against any cost, loss, liability
or expense (including attorneys' fees) arising out of third party claims against
Supplier relating to Distributor's use and distribution of the Product.

      (d) No Implied Waivers. The failure of either party at any time to require
performance by the other of any provision hereof shall not affect the right of
such party to require performance at any time thereafter, nor shall the waiver
of either party of a breach of any provision hereof be taken or held to be a
waiver of a provision itself.

      (e) Severability. If any provision of this Agreement is held to be invalid
by a court of competent jurisdiction, then the remaining provisions will
nevertheless remain in full force and effect. The parties agree to renegotiate
in good faith those provisions so held to be invalid to be valid, enforceable
provisions which provisions shall reflect as closely as possible the original
intent of the parties, and further agree to be bound by the mutually agreed
substitute provision.

      (f) Force Majeure. Except for payment of monies, neither party shall be
liable for failure to fulfill its obligations under this Agreement or for delays
in delivery due to causes beyond its reasonable control, including, but not
limited to, acts of God, acts of terror, man-made or natural disasters,
earthquakes, fire, riots, flood, material shortages, strikes, delays in
transportation or inability to obtain labor or materials through its regular
sources. The time for performance of any such obligation shall be extended for
the time period lost by reason of the delay.

      (g) Conflicting Terms. The parties agree that the terms and conditions of
this Agreement shall prevail, notwithstanding contrary or additional terms, in
any purchase order, sales acknowledgment, confirmation or any other document
issued by either party effecting the purchase and/or sale of Product.

      (h) Headings. Headings of Sections herein are inserted for convenience of
reference only and shall not affect the construction or interpretation of this
Agreement.

      (i) Notice. Any notice required or permitted to be given under this
Agreement shall be delivered (i) by hand, (ii) by registered or certified mail,
postage prepaid, return receipt requested, to the address of the other party
first set forth above, or to such other address as a party may designate by
written notice in accordance with this Section 15(i), (iii) by overnight
courier, (iv) by email to an officer of such party or (v) by fax with confirming
letter mailed under the conditions described in (ii) above. Notice so given
shall be deemed effective when received, or if not received by reason of fault
of addressee, when delivered.

      (j) Entire Agreement. This Agreement contains the entire understanding of
the parties with respect to the subject matter hereof and supersedes all prior
agreements relating thereto, written or oral, between the parties. Amendments to
this Agreement must be in writing, signed by the duly authorized officers of the
parties. This Agreement may be executed in counterparts and delivered by
facsimile, all of which shall together be effective as a single original.

      (k) Governing Law. This Agreement shall be governed by and construed under
the laws of the State of California, United States of America, without regard to
conflict of laws principles or the U.N. Convention on Contracts for the
International Sale of Goods. The parties consent to the jurisdiction of the
United States District Court for the Southern District of California for
purposes of any disputes arising out the their relationship.

                                                                         Page 11
<PAGE>
                                                                    EXHIBIT 10.7

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

SUPPLIER:                                   DISTRIBUTOR:

     LINDOWS.COM, INC.                           LIVIN' ON THE EDGE, CO., LTD.

By:  /s/ Kevin Carmony                      By:  /s/ Takafumi Horie
   -------------------------------             ---------------------------------

Name:  Kevin Carmony                        Name:  Takafumi Horie
     -----------------------------

Title:  President and COO                   Title:     President and CEO
      ----------------------------

                                                                         Page 12
<PAGE>
                                                                    EXHIBIT 10.7

                                    EXHIBIT A

SOFTWARE

LindowsOS Version 3.0 Membership Edition (both English and Japanese versions)
(Object Code) and any new versions including versions that contain new features
or functionality.

Click-N-Run Installation with pre-determined software applications (Object Code)

MEMBERSHIP SERVICES

One year free membership to "Click-N-Run" Warehouse, a service provided by
Lindows.com enabling users of LindowsOS to access and install software
applications provided by parties other than Provider, valued at $99.00 (United
States Dollars). Membership to "Click-N-Run" Warehouse does not include the
cost, if any, of the software which may be charged for the software provided by
such third parties.

DOCUMENTATION

                                                                        Page B-1<PAGE>
                                                                    EXHIBIT 10.8

                                            *** CERTAIN CONFIDENTIAL INFORMATION
                                            CONTAINED IN THIS DOCUMENT
                                            (INDICATED BY ASTERISKS) HAS BEEN
                                            OMITTED AND FILED SEPARATELY WITH
                                            THE SECURITIES AND EXCHANGE
                                            COMMISSION PURSUANT TO A REQUEST FOR
                                            CONFIDENTIAL TREATMENT UNDER 17
                                            C.F.R. SECTIONS 200.80(B)(4),
                                            200.803 AND 230.406

            STARSUITE SOFTWARE OEM LICENSE AND DISTRIBUTION AGREEMENT

      This StarSuite Software OEM License and Distribution Agreement
("Agreement") is made and entered into by and between Sun Microsystems, Inc., a
Delaware corporation, located at 4150 Network Circle, Santa Clara, California
95054 ("Sun") and Customer set forth below ("Customer"):

      Customer:         Lindows.com
      Address:          9333 Genesee Avenue, 3rd Floor
                        San Diego, California 92121
                        U.S.A.
      Tel:              858-587-6700
      Fax:              858-587-6700
      E-mail:           __________________________

WHEREAS, Sun designs, develops and markets office productivity software and
documentation.

WHEREAS, Customer desires to license from Sun the Software (as defined below)
and distribute the same on the terms and conditions herein.

IN CONSIDERATION of the mutual promises and covenants contained in this
Agreement and the Attachments attached hereto and incorporated herein, and for
other good and valuable consideration, receipt of which is hereby acknowledged,
the parties agree as follows:

This Agreement includes the terms and conditions set forth herein and the
following attachments (collectively, "Attachments"):

         ATTACHMENT 1               AGREEMENT DETAILS
         ATTACHMENT 2               END USER BINARY CODE LICENSE AGREEMENT

Notices as described in Section 12.8 ("Notices") shall be delivered to Customer
at the above address and to Sun at 4120 Network Circle, Bldg. 12, M/S:
SCA12-112, Santa Clara, CA 95054, Attention: Vice President, Software Sales,
with a copy to Sun Legal Dept. at 4140 Network Circle, Bldg. 14, M/S: SCA14-210
OEM & Technologies Legal Dept., Santa Clara, CA 95054. Royalty reports and
payments should be sent to the following address unless otherwise specified by
Sun in writing: Sun Microsystems, Inc., Software Royalty Accounting Group
--StarSuite, P.O. Box 10903, Palo Alto, CA 94303.

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

SUN MICROSYSTEMS, INC.                     CUSTOMER:  LINDOWS.COM

By:  /s/ Vineet Gupta                      By:  /s/ Kevin Carmony
   ---------------------------------          ---------------------------------

                                  Page 1 of 17
<PAGE>
                                                                    EXHIBIT 10.8

Name:  Vineet Gupta                        Name:  Kevin Carmony
     -------------------------------            -------------------------------
         (printed or typed)                            (printed or typed)

Title:  Worldwide Director                 Title:  President
      ------------------------------             ------------------------------

Date:    6-17-03                           Date:   5-28-03
     -------------------------------            -------------------------------

                                  Page 2 of 17
<PAGE>
                                                                    EXHIBIT 10.8

                          GENERAL TERMS AND CONDITIONS

1.0 DEFINITIONS

      1.1 "Binary Code License" or "BCL" means an End User license to use the
Software pursuant to the terms set forth in Attachment 2 ("End User Binary Code
License Agreement"). The BCL must be provided with each copy of the Software
distributed.

      1.2 "Confidential Information" means that information which Customer
and/or Sun desire to protect against unauthorized disclosure or use and which
the disclosing party designates as confidential (i) in writing, if communicated
in writing, or (ii) orally, prior to any oral disclosure of the Confidential
Information. The terms and conditions of this Agreement shall be considered
Confidential Information of Sun.

      1.3 "Customer Marketing Collateral" means all materials created by
Customer and used in connection with promoting or marketing Customer's Product,
including but not limited to, advertising, press releases, brochures, data
sheets, web pages, trade show and event materials, and ad pillars, in any
medium, including but not limited to print and online media.

      1.4 "Customer's Product(s)" means the hardware system(s), software and/or
components manufactured by or for Customer which have material value independent
from the Software, and incorporate or include the Software as an integral
element of Customer's hardware system, software or component, pre-installed from
Master Media.

      1.5 "Distributor" means an entity that distributes Customer's Products and
which is under a contractual obligation to Customer as set forth in this
Agreement, for example, a retail distributor.

      1.6 "Effective Date" shall have the meaning set forth in Section 3.1
("Term").

      1.7 "End User" means the person or entity to whom the BCL applies and to
whom Customer and/or Distributors furnish the Software for use with and as part
of Customer's Products for internal use and not for resale, marketing, or
leasing.

      1.8 "End User Documentation " means users' manuals, programmers' guides
and system guides which Sun may provide for use with the Software, and which are
specified in the Attachments hereto and/or the Price List.

      1.9 "Error" means any reproducible failure of the Software to perform its
intended functions or any material inaccuracies in the End User Documentation.

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

      1.11 "Installed Base" means Customer's pre-existing End User customers who
are already in possession of and using Customer's Product under a current and
valid license. Such installed Customer Products shall be referred to as
"Installed Systems."

      1.12 "Licensed Trademarks" means the StarSuite Logos, STARSUITE word mark,
and the Sun Logo depicted in the Trademark *rise Agreement entered into by
Customer and Sun, or such additional or replacement mark(s) as Sun may provide
under the Trademark License Agreement, and no other logo, mark or designation.

      1.13 "Master Media" means the Software delivered to Customer for the
purpose of mass duplication in accordance with Section 2.0 ("Binary License
Rights; Terms and Conditions") herein.

      1.14 "Price List" means the then-current, geographical, specific release
of the Sun Software OEM and Reseller License Fee and Royalty Schedule including
any subsequent price changes made by Sun pursuant to Section 4.4 ("Price
Changes").

      1.15 "Royalty Bearing Event" means the license, grant of right to use, or
other authorized transfer of the Software. There will be only one (1) Royalty
Bearing Event for each copy of the Software shipped.

                                  Page 3 of 17
<PAGE>
                                                                    EXHIBIT 10.8

      1.16 "Software" means the binary, machine-readable, executable code for
the Sun software product and End User Documentation listed in Attachment 1
("Agreement Details") hereto, and Updates or Error Corrections provided to
Customer, if any.

      1.17 "Sun Marketing Collateral" means all materials created by or for Sun
and used in connection with promoting or marketing Sun's Software, including but
not limited to, advertising, press releases, brochures, data sheets, web pages,
trade show and event materials, and ad pillars, in any medium, including but not
limited to print and online media.

      1.18 "Sun Trademarks" means the Licensed Trademarks and all iPlanet-,
Java-, Jini-, Solaris-, Sun-, and StarSuite-based names, marks, logos, trade
dress and other brand designations used by Sun and its related companies.

      1.19 "Tax" means sales, use, rental, receipt, personal property,
value-added, consumption, goods and services, or other tax which may be levied
or assessed in connection with this Agreement, excluding tax based on Sun's
income.

      1.20 "Territory" means the jurisdiction(s) where Customer may market,
advertise, and distribute Customer's Product containing the Software as set
forth in Attachment 1 ("Agreement Details"), and shall include no other
countries except Japan, the Peoples Republic of China (excluding Hong Kong),
Korea or Taiwan unless otherwise agreed by Sun in writing.

      1.21 "Technical Support Entitlement" means that Sun will provide to
Customer for inclusion with Customer's Product, a text file (e.g., "Read Me"
file), splash screen, dialogue box or other collateral that will entitle the End
User to technical assistance with the Software (End User questions about the
Software relating to specific, discrete issues such as installation, launch,
configuration, usability, etc.) within a specified timeframe. Sun may also
provide End User Software training.

      1.22 "Update" means a release of the Software, if any, which is designated
by Sun in its sole discretion as containing substantially only Error
Corrections, or minor new features, functionality and/or performance
enhancements. An Update is generally signified by a change of version
designation to the right of the decimal point, for example, version 6.0 to
version 6.1.

2.0   BINARY LICENSE RIGHTS; TERMS AND CONDITIONS

      2.1 Binary License Grant. Subject to and conditioned upon Customer's
compliance with the payment obligations, limitations and restrictions set forth
in this Agreement, with respect to Software, Sun grants to Customer a personal,
non-transferrable, and nonexclusive, royalty-bearing, limited right and license
as follows:

            (a) to make copies of the Software from Master Media, install those
copies in Customer's Products as part of the manufacturing process prior to
shipment, and distribute such copies as part of Customer's Products in
accordance with the terms of this Agreement;

            (b) to copy Software from Master Media onto separate packaged
product storage media such as CD-ROMs ("White-CD") and distribute for use with
Customer's Product one White-CD with each Customer's Product incorporating
Software installed from Master Media;

            (c) to the extent Updates are made available, to distribute
unbundled Updates to Customer's Installed Base for use only with Installed
Systems. Updates will be made available solely at Sun's discretion. Such
distributions, if any, must be made pursuant to an agreement with each End User
restricting use of the Update to Installed Systems.

      2.2 Binary License Terms and Conditions. Each distribution of the Software
by Customer or its Distributors to an End-User must be made pursuant to the
unmodified terms and conditions of the BCL, including the supplemental terms and
conditions relating to the Software. It is expressly acknowledged and agreed
that in the United States and in other jurisdictions where an enforceable
copyright protection covering the Software exists, such license may be a written
agreement on or accompanying the package containing the Software media that is
fully visible to the End-User before the package is opened, that the End-User
accepts by

                                  Page 4 of 17
<PAGE>
                                                                    EXHIBIT 10.8

opening the package and that complies with applicable law relating to agreements
of such type. In all other jurisdictions, such license must be a written
agreement signed by the End-User. Sun does not undertake to inform Customer of
the jurisdictions where such copyright protection exists. In the event the End
User, upon reading the BCL, elects to return the product as provided in the
product packaging, Customer will accept return of the Software and shall refund
the license fee to the End User.

      2.3 Distribution Agreements.

            (a) Prior to Customer furnishing any Software to any of its
Distributors, Customer shall obtain a signed agreement from its Distributors
substantially similar to the terms and conditions of this Agreement and
sufficient to allow protection of the intellectual property rights of Sun and
its licensors.

            (b) Customer shall use commercially reasonable efforts comparable to
those it uses for its own products to monitor and enforce any agreements with
Distributors and End Users of the Software entered into by Customer or its
Distributors, and Customer shall promptly inform and consult with Sun if
Customer becomes aware of any substantial non-compliance. If a Distributor or
End User fails to fulfill any of its material obligations with respect to the
Software under such agreement, Sun may, upon its election and in addition to any
other remedies that it may have, notify Customer in writing of such breach and
require Customer to terminate all the rights granted in such agreement with
respect to the Software by thirty (30) days written notice to such Distributor
or End User specifying the breach, unless the breach is remedied within such
thirty (30) day period. In the event that Customer fails to satisfy the
foregoing obligations with regard to the Software, subject to Section 8.0
("Limitation of Liability"), Customer shall be responsible for all reasonable
costs incurred by Sun, including without limitation, attorneys' fees, in
connection with such enforcement actions undertaken by Sun. In those
jurisdictions where Sun does not have standing to bring an action in its own
name or under the intellectual property laws of such jurisdiction, Customer
shall assign those rights to Sun reasonably necessary to allow Sun to bring an
action under any legal theory available to Customer.

      2.4 End User Documentation Distribution; Modification.

            (a) End User Documentation Distribution. Electronic documentation is
included with Software. Customer may reprint documentation included on Master
Media only.

            (b) Modification of End User Documentation. Customer may not modify
the End User Documentation.

      2.5 Trademarks, Logos and Product Designs; Proprietary Notices.

            (a) Customer may refer to Software by the associated Sun Trademarks
(but shall not use Suns stylization or logos except as otherwise provided in the
Trademark License Agreement that will be executed in conjunction with this
Agreement, provided that such reference is not misleading and complies with the
Sun Trademark and Logo Requirements, currently located at
http://www.sun.com/policies/trademarks. Customer shall not remove, alter, or add
to any Sun Trademarks, nor shall it co-logo Software.

            (b) As between Sun and Customer, Customer acknowledges and agrees
that Sun is the sole owner of the Sun Trademarks and all associated goodwill and
intellectual property rights. Customer further agrees that any use of Sun
Trademarks by Customer shall inure to the sole benefit of Sun. Customer agrees
not to: (i) challenge Sun's ownership, use of or the validity of the On
Trademarks; (ii) attempt or register any mark or logo identical or substantially
similar to any Sun Trademark; (iii) remove, alter or add to any of Sun
Trademark; (iv) incorporate any of Sun Trademarks into Customer's trademarks,
product names, service marks, company names, slogans, domain names or any other
similar designations for use on or in connection with any computer and/or
internet-related hardware, software, technologies or services or any other
products or services likely to cause confusion with or dilute the Sun
Trademarks; or (v) infringe any Sun Trademark or associated intellectual
property rights. If Customer acquires any rights in any Sun Trademarks by
operation of law or otherwise, it will immediately at no expense to Sun assign
such rights to Sun along with any associated goodwill, applications, and/or
registrations.

            (c) Customer is granted no right, title or license to, or interest
in, any Sun Trademarks or any name, mark, logo, trade dress or brand designation
of Sun and its related companies in this Agreement or

                                  Page 5 of 17
<PAGE>
                                                                    EXHIBIT 10.8

any Attachment to this Agreement. Customer agrees to enter into and comply with
a Trademark License Agreement that it will sign with Sun. The Trademark License
Agreement shall be considered a separate agreement and not part of the terms of
this Agreement. Customer shall use the STARSUITE word mark, the StarSuite Logos
and the Sun Logo in strict compliance with the terms and conditions of the
Trademark License Agreement.

            (d) Customer shall not delete, cover or alter, and shall maintain
Sun's trademarks, logos, proprietary rights notices and restrictive rights
legends included in and on the End User Documentation and Software. Customer
shall reproduce any proprietary rights notices of Sun and/or contributing third
parties contained in or on all copies of Software, End User Documentation,
packaging and related materials, in whole or in part, developed or made by
Customer or its Distributors. Customer shall submit its Customer Products
containing Software, End User Documentation or other materials licensed
hereunder to Sun for approval pursuant to this Section 2.5 ("Trademarks, Logos
and Product Designs; Proprietary Notices") prior to distribution, which approval
shall not be unreasonably withheld or delayed.

      2.6 Intended Purpose. The intended purpose of the Software is for use on,
and as an integral component of, Customer's Products. Customer's Product
packaging for the Software shall clearly indicate this intended purpose.
Customer shall market and distribute the Software only with Customer's Product
and directly or indirectly through Customer's Distributors to End Users only if
bundled with Customer's Product. Customer and Distributors shall not distribute
the Software on a stand-alone basis.

      2.7 Governmental Approvals. Customer shall, at its own expense, obtain and
arrange for the maintenance in full force and effect of all governmental
approvals, consents, licenses, authorizations, declarations, filings and
registrations as may be necessary for the performance of the terms and
conditions of the Agreement, including without limitation, fair trade approvals,
under all laws, regulations and other legal requirements within the
jurisdictions that Customer distributes the Software that apply to this
Agreement, including tax and foreign exchange legislation.

      2.8 No Other Rights. Except as expressly stated herein and in the
Attachment(s) hereto, no other license, right or interest is granted to Customer
for any other purpose.

3.0   TERM AND TERMINATION

      3.1 Term. This Agreement shall commence on: (i) the date of its execution
by Sun or (ii) where this Agreement will be void or Sun will be liable for a
penalty without an approval, registration, filing as referred to in Section 2.7
("Governmental Approvals"), or Sun obtaining the necessary US export license,
the date of such approval, registration, filing, or US export license, whichever
occurs later (the "Effective Date") and shall have an initial term of one (1)
year. Thereafter, this Agreement shall be automatically renewed for successive
one (1) year terms (with a maximum of two (2) subsequent terms), unless one
party notifies the other party in writing at least thirty (30) days before the
end of the then-current term stating that it wishes to terminate this Agreement;
whereupon, this Agreement shall terminate at the end of the then-current term.

      3.2 Termination. If either party fails to comply with any of the material
terms and conditions of this Agreement, the other party may terminate this
Agreement upon thirty (30) days written notice to the breaching party specifying
any such breach, unless the breach specified therein has been remedied within
such thirty (30) day period. In the event of Customer's breach, Sun may
terminate this Agreement in its entirety or as to any individual Software
product.

      3.3 Termination for Insolvency. Either party may terminate this Agreement
immediately in the event that the other party ceases to conduct its operations
in the normal course of business, files for or becomes the subject of a
bankruptcy petition, is placed in receivership, or attempts to assign this
Agreement to creditors or otherwise without prior written consent of the other
party.

      3.4 Effect of Termination.

            (a) For Breach by Customer: Upon expiration or termination of this
Agreement for breach by Customer, Customer shall discontinue issuing BCLs for
the Software, shall return all Software and Sun Confidential Information and all
copies thereof in its possession to Sun or destroy all Software and all

                                  Page 6 of 17
<PAGE>
                                                                    EXHIBIT 10.8

copies thereof in Customer's possession and certify in writing by an officer of
Customer that such Software and all copies thereof were so destroyed.

            (b) BCLs for the Software issued prior to the effective date of
termination shall continue in accordance with their terms and conditions.
Customer's obligation to pay royalties accrued prior to the termination of this
Agreement shall not terminate.

      3.5 No Liability For Termination. To the full extent allowed by any
applicable law except as expressly provided in this Agreement, Customer agrees
that it shall have no rights to damages or indemnification of any nature due to
any expiration or rightful termination of this Agreement by Sun pursuant to its
terms. The foregoing restriction shall include without limitation, commercial
severance pay whether by way of loss of future profits, expenditure for
promotion of the Software, payment for goodwill generated or other commitments
made in connection with the business contemplated by this Agreement or other
similar matters. Customer will not be entitled under local law or otherwise to
receive any payment from Sun, whether for actual, consequential, indirect,
special or incidental damages, costs or expenses, whether foreseeable or
unforeseeable, any right to which Customer hereby waives and disclaims. Customer
EXPRESSLY WAIVES AND RENOUNCES ANY CLAIM TO COMPENSATION OR INDEMNITIES FOR ANY
TERMINATION OF BUSINESS RELATIONSHIP BY A FOREIGN BUSINESS ENTITY, WHICH MAY
EXIST UNDER THE LAWS OF ANY APPLICABLE JURISDICTION.

      3.6 Survival. Rights and obligations under this Agreement which by their
nature should survive, will remain in effect after termination or expiration
hereof.

4.0   PAYMENTS; TAXES; ACTIVITY LEVEL

      4.1 Payment Terms. Except as otherwise specified in the Attachments
hereto, and in consideration of the rights granted to Customer hereunder,
Customer shall pay to Sun the royalties for each Royalty Bearing Event for the
applicable Software licensed or distributed by Customer on a quarterly basis
within thirty (30) days following the end of the preceding calendar quarter,
accompanied by a report pursuant to Section 5.1 ("Record Keeping") below.
Software license and royalty fees are set forth on the Sun Price List. To the
extent that Customer orders any Software or other products from Sun or Sun
invoices Customer for any royalties due, Customer shall pay any amounts due to
Sun within thirty (30) days from Sun's invoice date except for royalties, which
shall always be due within thirty (30) following the end of the preceding
calendar quarter. Sun's acceptance of this Agreement and any associated order(s)
does not imply Sun's approval of an open line of credit. Credit terms are
established by Sun based in part upon Customer's financial and payment records.
Sun reserves the right to place Customer on credit hold in the event Customer's
financial condition ceases to warrant the credit terms specified above.

      4.2 Taxes.

            (a) Subject to Section 4.2(b), all amounts payable by Customer under
this Agreement are exclusive of any Tax, levy or similar governmental charge
that may be assessed by any jurisdiction, whether based on gross revenue, the
delivery, possession or use of the Software, the execution or performance of
this Agreement or otherwise, except for net income, net worth or franchise taxes
assessed on Sun. If, under the local law, Customer is required to withhold any
Tax on such payments, then the amount of the payment actually remitted to Sun
will be net of all Taxes. Customer will promptly furnish Sun with the official
receipt of payment of these Taxes to the appropriate taxing authority. Customer
will pay all other Taxes, levies or similar governmental charges or provide Sun
with a certificate of exemption acceptable to the taxing authority.

            (b) Notwithstanding Section 4.2(a), Customer may deduct from
payments any income tax or tax of a similar nature imposed by any non-United
States government ("government income tax") on the income of Sun from such
payment and actually paid by Customer for the account of Sun. In the event that
Customer deducts any such income tax from any such payment, Customer shall
furnish Sun with evidence acceptable to Sun and to the United States Government
to sufficiently establish that such government income tax has been paid for the
account of Sun.

                                  Page 7 of 17
<PAGE>
                                                                    EXHIBIT 10.8

            4.3 Updates. The fees specified in this Agreement are for the
then-current release of the Software and any Updates. It is within Sun's sole
discretion to release and/or distribute Updates to Customer. Sun shall have the
right, at its sole discretion and without incurring any liability to Customer,
to modify the Software or discontinue its development, manufacture, sale or
support and will provide Customer with sixty (60) days prior notice. Such change
shall not require Customer's approval.

            4.4 Price Changes. Sun reserves the right to change the Price List,
discount schedule and/or royalties for any Software at any time. In the event of
a price increase, Sun shall provide Customer with thirty (30) days prior notice.
Such change shall not require Customer's approval. If, during the term of this
Agreement, Sun decreases the royalty rate for any Software(s), all orders for
such Software(s) scheduled for shipment or in transit to Customer at the time of
such notice shall be adjusted to the decreased royalty rate.

            4.5 Customer's Products. Customer shall list in its revenue reports
to Sun pursuant to Section 5.0 ("Records; Audit Requirement; Forecast") of the
Agreement, Customer's Products shipped in conjunction or associated with the
Software hereunder.

5.0   RECORDS; AUDIT REQUIREMENTS; FORECAST

      5.1 Record Keeping. Customer shall maintain for a three (3) year period
revenue records sufficient to determine that Customer is in compliance with the
terms and conditions of this Agreement. Customer shall provide to Sun along with
any payments specified hereunder, quarterly revenue reports, in the English
language which shall include, at a minimum, the following information: (i) the
Names of Software products; (ii) Customer's Product names; (iii) the number of
units of each type of Customer's Product shipped with the Software; (iv) the
number of Customer's Product units forecasted to be shipped for the next six (6)
months; (v) the number of units of Customers Product that were returned to
Customer for the reporting period for which Customer is entitled to a credit;
and (vi) the royalty amounts due Sun. For any quarter in which no royalties are
paid, Licensee will submit a report so indicating, along with any of the
applicable above information. Royalty reports and payments should be sent to the
address set forth above unless otherwise indicated by Sun in writing.

      5.2 Audit Requirements. The following audit provision shall continue
throughout the term of this Agreement and shall survive the termination of this
Agreement insofar as applicable to obligations accrued prior to such
termination.

            (a) Right to Audit. Sun shall have the right to audit the records
and accounts of Customer required to be kept in accordance with this Agreement.
The auditor shall be adequately bound to keep confidential all Confidential
Information of Customer learned during the course of or pursuant to the audit.
Any such audit shall be performed only during Customer's normal business hours,
no more frequently than once per calendar year (but more frequently and at Sun's
discretion if irregularities are found), and shall be performed in such a manner
as to avoid unreasonable interference with Customer's business operations; and
the auditor shall be limited to reporting the adequacy of Customer's records and
accounts, including, but not limited to, whether Customer is in compliance with
the terns of this Agreement and the amount, if any, of underpayment or
overpayment of the amounts due Sun pursuant to this Agreement. Except as
expressly provided in Section 5.2(b) ("Errors In Payment"), Sun shall bear all
costs and expenses associated with the exercise of its right to audit.

            (b) Errors in Payment. In the event that any errors in payment shall
be determined, such errors shall be corrected by appropriate adjustment in
payment (plus interest at one and one-half percent (1-1/2%) per month or the
highest rate permitted by law) for the quarterly period during which the error
is discovered. In the event of underpayment of more than five percent (5%) of
the amount due for that period (i) Customer shall reimburse Sun for the
reasonable charges of the audit that identified the underpayments, and (ii) Sun
shall have the right to conduct additional audits, at its sole discretion; in
ninety (90) day intervals until Customer becomes fully compliant with the terms
and conditions of this Agreement.

                                  Page 8 of 17
<PAGE>
                                                                    EXHIBIT 10.8

6.0   CONFIDENTIAL INFORMATION

Customer may not disclose Sun's Confidential Information and may use it only for
purposes specifically contemplated in this Agreement. Sun will treat Customers
Confidential Information with the same degree of care as it does its own similar
information. The foregoing obligations do not apply to information which: (i) is
rightfully obtained by recipient without an obligation to maintain its
confidentiality; (ii) is or becomes generally known to the public through no act
or omission of recipient, or (iii) is independently developed by recipient
without use of the other party's Confidential Information. This Section 6.0
("Confidential Information") will not affect any other confidential disclosure
agreement between the parties.

7.0   WARRANTIES

      7.1 Customer's Limited Warranty: Sun warrants that for a period of ninety
(90) days from the date of delivery to Customer that the media on which the
Software is furnished will be free of defects in materials and workmanship under
normal use. Except for the foregoing, to the full extent allowed by applicable
law, the Software is provided "AS IS" and without warranty of any kind.
Customer's exclusive remedy and Sun's entire liability under this limited
warranty will be at Sun's option to repair or replace the defective media.

      7.2 Nuclear Applications. Software is not designed or intended for use in
the design, construction, operation or maintenance of any nuclear facility. SUN
DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY OF FITNESS FOR SUCH USES.

      7.3 No Other Warranties. UNLESS SPECIFIED IN THIS AGREEMENT, ALL EXPRESS
OR IMPLIED CONDITIONS, REPRESENTATIONS AND WARRANTIES, INCLUDING ANY IMPLIED
WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR
NON-INFRINGEMENT, ARE DISCLAIMED, EXCEPT TO THE EXTENT THAT SUCH DISCLAIMERS ARE
HELD TO BE LEGALLY INVALID.

8.0   LIMITATION OF LIABILITY

TO THE FULL EXTENT ALLOWED BY ANY APPLICABLE LAW, AND EXCEPT FOR OBLIGATIONS TO
DEFEND UNDER SECTION 9.0 ("INTELLECTUAL PROPERTY CLAIMS") OF THIS AGREEMENT,
EACH PARTY'S LIABILITY TO THE OTHER FOR CLAIMS RELATING TO THIS AGREEMENT,
WHETHER FOR BREACH OR IN TORT, SHALL BE LIMITED TO THE AMOUNT OF ACCRUED
ROYALTIES PAYABLE TO SUN FOR ALL COPIES LICENSED HEREUNDER FOR THE PARTICULAR
SOFTWARE GIVING RISE TO SUCH CLAIM, IF ANY. THE FOREGOING LIMITATION DOES ~T
REDUCE CUSTOMER'S OBLIGATION TO PAY SUN THE LICENSE FEES DUE AND OWING FOR THE
SOFTWARE. NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY INDIRECT, PUNITIVE,
SPECIAL, INCIDENTAL OR NSEQUENTIAL DAMAGES IN CONNECTION WITH OR ARISING OUT OF
THIS AGREEMENT (INCLUDING WITHOUT LIMITATION, LOSS OF PROFITS, USE, DATA, OR
OTHER ECONOMIC ADVANTAGE), HOWEVER IT ARISES, WHETHER FOR BREACH OF THIS
AGREEMENT, INCLUDING, BUT NOT LIMITED TO, BREACH OF WARRANTY, OR IN TORT, EVEN
IF THAT PARTY HAS BEEN PREVIOUSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGE, AND
WHETHER OR NOT SUCH DAMAGES ARE FORESEEABLE. THE FOREGOING LIMITATION OF
LIABILITY OF CUSTOMER TO SUN SHALL NOT APPLY IF CUSTOMER'S ACTIONS OR INACTION
RESULT IN THE UNAUTHORIZED DISCLOSURE, DISTRIBUTION OR USE OF THE SOFTWARE OR
SUN'S CONFIDENTIAL INFORMATION.

9.0   INTELLECTUAL PROPERTY CLAIMS

      9.1 Sun shall defend at its own expense and, in addition, shall indemnify
Customer from damages, liabilities, costs and expenses actually awarded against
Customer up to the amount stated in Section 8.0 ("Limitation of Liability"), as
a result of any final judgment against Customer in which it is determined that
the marketing or use of any Sun written code within the Software infringe Berne
Convention copyrights of third parties in any country where Sun has a
subsidiary. In the event Sun elects to avoid litigation relating to

                                  Page 9 of 17
<PAGE>
                                                                    EXHIBIT 10.8

the foregoing and settle any such claims, Sun will pay the settlement amount and
obtain a release as to all such claims against Customer.

      9.2 Customer shall defend at its expense without limitation and, in
addition, shall indemnify Sun from damages, liabilities, costs and expenses
actually awarded against Sun up to the amount stated in Section 8.0 ("Limitation
of Liability"), as a result of actions or omissions set forth in Section 9.5 (i)
through (iv). In the event Customer elects to avoid litigation relating to the
foregoing and settle any such claims, Customer will pay the settlement amount
and obtain a release as to all such claims against Sun.

      9.3 The indemnification obligations set forth in Sections 9.1 and 9.2
above shall be conditioned upon the indemnified party (i) notifying the
indemnifying party within thirty (30) days of notice of a claim of infringement;
(ii) providing full cooperation and assistance to the indemnifying party at the
indemnifying party's expense; and (iii) providing the indemnifying party full
authority to manage the defense or settlement of the claim.

      9.4 Should Software become or, in Sun's opinion, be likely to become the
subject of a claim of infringement for which indemnification obligations would
apply according to Section 9.1 above, Sun, at its option may (i) at no
additional cost to Customer, procure for Customer the right to continue to use
the Software, (ii) at no additional cost to Customer, replace or modify the
Software to make such Software non-infringing, provided that substantially
similar functionality and performance is obtained with the replacement or
modified Software, or (iii) if the right to continue to use cannot be procured
under commercially reasonable terms, or such Software cannot be replaced or
modified within a commercially reasonable time and at a commercially reasonable
expense, terminate the license to use such Software and refund to Customer over
five (5) years in equal monthly payments the amounts that Customer refunds to
its customers for such Software due to the claim of infringement, up to the
total amounts actually paid by Customer to Sun under this Agreement for such
Software. Sun's performance of (i), (ii) or (iii) above shall be Customer's sole
and exclusive remedies.

      9.5 Notwithstanding the foregoing, Sun shall have no obligation to
indemnify and defend Customer or to pay costs, damages or attorneys' fees for
any claim based upon (i) the combination, operation, or use by Customer of
Software with other equipment, code, programs or data not supplied by Sun if
such infringement would have been avoided but for the combination, operation or
use of the Software with other equipment, code, programs or data; or (ii) use by
Customer of other than the then-latest version of the Software, if such
infringement could have been avoided by the use of the latest version of the
Software and such latest version had been made available to Customer; or (iii)
modifications by Customer of the Software in the event such infringement is
caused by such modifications; or (iv) use by Customer outside the scope of the
granted license(s).

10.0  MAINTENANCE AND SUPPORT

Sun shall provide technical assistance (as provided in Section 1.21) to End
Users. Customer shall distribute the Technical Support Entitlement with
Customer's Product to End Users.

11.0  GOVERNMENT CONTRACTS

      11.1 U.S. Governments

            (a) If Software is being acquired by or on behalf of the U.S.
Government or by a U.S. Government prime contractor or subcontractor (at any
tier), then the Government's rights in Software and accompanying documentation
will be only as set forth in this Agreement; this is in accordance with 48 CFR
227.7201 through 227.7202-4 (for Department of Defense (DOD) acquisitions) and
with 48 CFR 2.101 and 12.212 (for non-DOD acquisitions). Customer is responsible
for ensuring that proper notice is given to all such third parties and that the
Software and technical data are properly marked. Customer shall indemnify Sun
for any claims or damages arising from any claim by the U.S. Government to more
than Restricted Rights in and to the Software product(s) resulting from
Customer's failure to provide a Restricted Rights legend as required herein. Any
failure by Sun to affix a Restricted Rights legend on the Software product(s)
shall not be deemed to constitute a waiver of any limitation on Customer's
rights imposed by this Agreement.

                                 Page 10 of 17
<PAGE>
                                                                    EXHIBIT 10.8

            (b) Under no circumstances shall Sun be obligated to comply with any
requirements imposed by the U.S. Government regarding submission of or the
request for exemption from submission of cost or pricing data or cost accounting
requirements for any distribution or license of Software that would require
compliance by Sun with U.S. Governmental requirements relating to cost or
pricing data or cost accounting requirements.

      11.2 Other Sovereign Governments

At its own cost and expense, Customer and its Distributors will take all
necessary steps in making proposals and agreements with sovereign governments
other than the U.S. Government which involve Software and End User Documentation
to ensure that Sun's proprietary rights in Software and End User Documentation
receive the reasonably necessary protection available from such foreign
governments for commercial computer software and related documentation developed
at private expense.

12.0  MISCELLANEOUS

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

      12.2 Severability. In the event that any part of this Agreement is held to
be unenforceable, in whole or in part, such holding will not affect the validity
of the other parts of this Agreement, unless Sun deems the unenforceable part to
be essential to this Agreement, in which case Sun may terminate this Agreement,
effective immediately upon notice to Customer.

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

      12.4 Governing Law. Any action related to this Agreement will be governed
by California law and controlling U.S. federal law. No choice of law rules of
any jurisdiction will apply.

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

      12.6 Assignment. Neither party may assign or otherwise transfer any of its
rights or obligations under this Agreement, without the prior written consent of
the other party, except that Sun may assign its right to payment and may assign
this Agreement to an affiliated company.

      12.7 Change of Control. In the event of the direct or indirect taking over
or assumption of control of Customer or of substantially all of its assets by
any government, governmental agency or other third party, Sun may terminate this
Agreement upon written notice to Customer.

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

      12.9 Waiver or Delay. Any express waiver or failure to exercise promptly
any right under this Agreement will not create a continuing waiver or any
expectation of non-enforcement. To be enforceable, a waiver must be in writing
and signed by the waiving party.

      12.10 No Rights in Third Parties. This Agreement is made for the benefit
of the parties hereto, and not for the benefit of any third parties unless
otherwise stated herein or agreed to by the parties.

      12.11 Counterparts. This Agreement may be executed in one or more
counterparts, each of which will be deemed an original, but all of which will
constitute but one and the same instrument.

                                 Page 11 of 17
<PAGE>
                                                                    EXHIBIT 10.8

      12.12 Headings. The headings and captions used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting
this Agreement.

      12.13 Construction. This Agreement has been negotiated by the parties
hereto and by their respective counsel. This Agreement will be fairly
interpreted in accordance with its terms and without any strict construction in
favor of or against either party. The original of this Agreement has been
written in English, and such version shall be the governing version of the
Agreement. To the extent allowed under applicable law, Customer waives any right
it may have, if any, under any law or regulation to have this Agreement written
in a language other than English.

      12.14 Orders. This Agreement does not constitute an order for Software,
but rather a commitment to order Software as set forth in the Attachments
hereto. Purchase orders for Software shall be submitted to Sun by Customer
pursuant to the terms of this Agreement. Any terms or conditions set forth on
any purchase order, check, or other document of Customer shall have no force or
effect whatsoever. Customer further acknowledges that it does not take title to
the Software, with the exception of the media, but rather licenses the Software
pursuant to the terms and conditions of this Agreement.

      12.15 Deliveries. Software and Documentation shall be delivered F.O.B.
Sun's designated shipping facility unless otherwise agreed to by the parties in
writing. Title to the Software media, but not to the Software and its associated
intellectual property rights, shall pass to Customer at that time. Sun may make
partial deliveries and such deliveries will not relieve Customer of its
obligation to accept the remainder of that order in whole or in part. Sun may
allocate Software to fairly accommodate orders received by Sun from all
customers at any time demand exceeds the available supply.

      12.16 Equitable Relief. Because the licenses granted under this Agreement
are personal and unique, and because Customer will have access to and become
acquainted with confidential and proprietary information of Sun, the
unauthorized use or disclosure of which would cause irreparable harm and
significant injury which would be difficult to ascertain and which would not be
compensable by damages alone, both parties agree that, in addition to any and
all legal remedies available to Sun for Customer's breach of this Agreement, Sun
shall be entitled to avail itself of actions against Customer and/or third
parties for seizure and injunctive relief. If an unauthorized use or disclosure
occurs, Customer will promptly notify Sun and take, at Customer's expense, all
steps which are necessary to recover the Software and to prevent its subsequent
unauthorized use or dissemination.

      12.17 Entire Agreement. This Agreement is the parties' entire agreement
relating to its subject matter. It supersedes all prior and contemporaneous oral
or written communications, proposals, conditions, representations and warranties
and prevails over any conflicting or additional terms of any quote, order,
acknowledgment, or other communication between the parties relating to its
subject matter during the term of this Agreement. No modification to this
Agreement will be binding, unless in writing and signed by an authorized
representative of each party.

                                 Page 12 of 17
<PAGE>
                                                                    EXHIBIT 10.8

                                  ATTACHMENT 1
                                AGREEMENT DETAILS

1. SOFTWARE PRODUCT VERSION & LANGUAGES: StarSuite software version 6.0 * in
English, German, French, Italian, Swedish, Spanish.

      *If and when Sun Makes a Portuguese edition of version 6.0 of the Software
generally commercially available, Customer may distribute such edition pursuant
to the terms of this Agreement. Customer understands and agrees that Sun is
under no obligation to make such a Portuguese edition available, and that Sun
may never make such and edition generally commercially available.

2. CUSTOMER'S PRODUCT(S) THAT WILL INCLUDE STARSUITE 6.0: Lindows OS [***],
Customer's Linux operating system.

3. DISTRIBUTION TERRITORY(S): THE STARSUITE SOFTWARE AND CUSTOMER MARKETING
COLLATERAL CONTAINING THE LICENSED TRADEMARKS MUST BE DISTRIBUTED OR MARKETED
SOLELY IN JAPAN, PRC (EXCLUDING HONG KONG), TAIWAN OR KOREA.

4. DISTRIBUTION TERRITORY LIMITATIONS: THE STARSUITE SOFTWARE AND CUSTOMER
MARKETING COLLATERAL CONTAINING THE LICENSED TRADEMARKS MUST BE DISTRIBUTED OR
MARKETED SOLELY IN JAPAN, PRC (EXCLUDING HONG KONG), TAIWAN OR KOREA. A SEPARATE
AND SPECIFIC PRODUCT ("STAROFFICE") IS AVAILABLE FOR DISTRIBUTION IN TERRITORIES
OUTSIDE OF THESE AREAS UNDER A SEPARATE AGREEMENT THROUGH THE STAROFFICE
BUSINESS GROUP.

5. SINGLE USER LICENSE AND END USER SUPPORT: Each StarSuite Software unit is a
single user license (please refer to the End User Binary Code License for more
detail). Each single user license includes a Technical Support Entitlement which
entitles the End User licensee to receive technical assistance as provided in
Section 1.21. Sun will provide technical assistance program details.

6. DISTRIBUTION OPTIONS: Customer is authorized to distribute Software via one
or more of the following models only

      A. SOFTWARE OEMS: Customer must market and distribute the Software, in
binary form, by bundling it with Customer's Product and reproducing the Software
on CDs that shall be distributed with Customer's Product. Customer (at its own
expense) must produce and distribute the CDs containing the StarSuite Software
as a value-add component of Customer's Product only, and shall not distribute
the StarSuite Software as a stand-alone product. Customer is prohibited from
distributing StarSuite Software as part of any publication of any kind (books,
magazines, etc.) without prior written permission from Sun. References to
Sun-approved CD producers are available upon request. Customer agrees to
distribute one (1) Technical Support Entitlement with each Software unit
distributed.

      B. HARDWARE OEM PRE-INSTALLS: Software shall be pre-installed on
Customer's Product, and a shortcut visible to End User will be placed on the
desktop upon initial activation and remain visible unless uninstalled by End
User. Customer may elect to include a CD containing the Software in binary form
for the sole purpose of providing a back-up CD to End User. Under this scenario,
separate instances of the Software (pre-install and on back-up CD) count as a
single unit for royalty calculation purposes. Customer will distribute one (1)
Technical Support Entitlement with each Software unit distributed.

      C. SUB-LICENSING TO HARDWARE MANUFACTURERS: Customer may resell Software
only to third party computer hardware manufacturers, and only if the Software is
bundled with Customer's Product. Customer must maintain accurate records of all
Software units distributed to third parties, and Customer will pay royalties for
such units based on Customer's current royalty rate as set forth in the Price
List. Customer is

                                 Page 13 of 17
<PAGE>
                                                                    EXHIBIT 10.8

responsible for ensuring that computer hardware manufacturers who obtain
Software from Customer for further distribution, fully comply with the trademark
usage standards set forth in Section 5 of the Trademark License Agreement, AND
pre-install Software as specified above in Section 6.B ("Hardware OEM
Pre-Installs"). Customer shall ensure that one (1) Technical Support Entitlement
is included with each Software unit distributed to sublicensees.

      D.    [***]

7. CUSTOMER TECHNICAL CONTACTS: [***]

8. CUSTOMER MARKETING CONTACT: [***]

9. ADDITIONAL CUSTOMER COMMITMENTS:

      i.    TRADEMARKS: Customer agrees to use the Sun Trademarks as specified
            in the Trademark License Agreement.

      ii.   REFERENCES AND PRESS QUOTE SUPPORT: Customer agrees to support and
            participate in a reasonable amount of Sun's press and marketing
            activities relating to this Agreement including, but not limited to,
            press releases, customer references, customer success stories, and
            customer quotes. Customer retains final approval of press releases,
            customer reference or success stories, and/or customer quotes.
            Notwithstanding the foregoing, Sun at its discretion may discuss
            this and other StarSuite OEM agreements with press and industry
            analysts.

10. CUSTOMER DELIVERABLES:

      A.    QUARTERLY REPORTS: Within thirty (30) days following each quarter
            end, Customer shall report to Sun the number of copies of Software
            (by platform) distributed by Customer in each country in the
            distribution Territory.

      B.    CUSTOMER MARKETING COLLATERAL & PACKAGING SAMPLES: Customer shall
            provide to Sun all Customer Marketing Collateral samples and
            Customer Product packaging mock-ups for approval by Sun pursuant to
            the terms and conditions in the Trademark License Agreement to be
            signed by the parties in conjunction with this Agreement.

      C.    FINAL PRODUCT SAMPLES: If Customer's Product is packaged as a retail
            box, Customer shall deliver to Sun two (2) complete samples of each
            boxed Customer Product that includes the Software. Customer will
            deliver new boxed samples as new versions of Customer's Products are
            released. In the event that Customer's Product is not packaged as a
            retail box, then Customer must provide a screenshot of Customer's
            Product clearly showing the pre-installed Software icon on the
            desktop.

11. SUN DELIVERABLES.

      A.    MASTER MEDIA: Sun shall deliver Master Media to Customer following
            the Effective Date of this Agreement. Customer is authorized to
            distribute Software binaries duplicated from Master Media only.

      B.    ARTWORK/FORMAT: Sun shall make available to Customer the Licensed
            Trademarks (in .eps format) relating to the StarSuite Software
            following the Effective Date of this Agreement and the execution by
            both parties of the Trademark License Agreement to be signed by the
            parties in conjunction with this Agreement.

                                 Page 14 of 17
<PAGE>
                                                                    EXHIBIT 10.8

      C.    TECHNICAL SUPPORT ENTITLEMENT: Sun shall provide Technical Support
            Entitlement (at no cost) to Customer which must be distributed with
            Customer's Product to End Users via printed collateral, text file
            (e.g., "Read Me" file), splash screen, dialogue box, or other means
            pre-approved in writing by Sun.

                                 Page 15 of 17
<PAGE>
                                                                    EXHIBIT 10.8

                                  ATTACHMENT 2

                     END USER BINARY CODE LICENSE AGREEMENT

READ THE TERMS OF THIS AGREEMENT AND ANY PROVIDED SUPPLEMENTAL LICENSE TERMS
(COLLECTIVELY "AGREEMENT") CAREFULLY BEFORE OPENING THE SOFTWARE MEDIA PACKAGE.
BY OPENING THE SOFTWARE MEDIA PACKAGE, YOU AGREE TO THE TERMS OF THIS AGREEMENT.
IF YOU ARE ACCESSING THE SOFTWARE ELECTRONICALLY, INDICATE YOUR ACCEPTANCE OF
THESE TERMS BY SELECTING THE "ACCEPT" BUTTON AT THE END OF THIS AGREEMENT. IF
YOU DO NOT AGREE TO ALL THESE TERMS, PROMPTLY RETURN THE UNUSED SOFTWARE TO YOUR
PLACE OF PURCHASE FOR A REFUND OR, IF THE SOFTWARE IS ACCESSED ELECTRONICALLY,
SELECT THE "DECLINE" BUTTON AT THE END OF THIS AGREEMENT.

1. LICENSE TO USE. Sun grants you a non-exclusive and non-transferable license
for the internal use only of the accompanying software and documentation and any
error corrections provided by Sun (collectively "Software"), by the number of
users and the class of computer hardware for which the corresponding fee has
been paid.

2. RESTRICTIONS. Software is confidential and copyrighted. Title to Software and
all associated intellectual property rights is retained by Sun and/or its
licensors. Except as specifically authorized in any Supplemental License Terms,
you may not make copies of Software, other than a single copy of Software for
archival purposes. Unless enforcement is prohibited by applicable law, you may
not modify, decompile, or reverse engineer Software. You acknowledge that
Software is not designed, licensed or intended for use in the design,
construction, operation or maintenance of any nuclear facility. Sun disclaims
any express or implied warranty of fitness for such uses. No right, title or
interest in or to any trademark, service mark, logo or trade name of Sun or its
licensors is granted under this Agreement.

3. LIMITED WARRANTY. Sun warrants to you that for a period of ninety (90) days
from the date of purchase, as evidenced by a copy of the receipt, the media on
which Software is furnished (if any) will be free of defects in materials and
workmanship under normal use. Except for the foregoing, Software is provided "AS
IS". Your exclusive remedy and Sun's entire liability under this limited
warranty will be at Sun's option to replace Software media or refund the fee
paid for Software.

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

5. LIMITATION OF LIABILITY. TO THE EXTENT NOT PROHIBITED BY LAW, IN NO EVENT
WILL SUN OR ITS LICENSORS BE LIABLE FOR ANY LOST REVENUE, PROFIT OR DATA, OR FOR
SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES, HOWEVER CAUSED
REGARDLESS OF THE THEORY OF LIABILITY, ARISING OUT OF OR RELATED TO THE USE OF
OR INABILITY TO USE SOFTWARE, EVEN IF SUN HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES. In no event will Sun's liability to you, whether in contract, tort
(including negligence), or otherwise, exceed the amount paid by you for Software
under this Agreement. The foregoing limitations will apply even if the above
stated warranty fails of its essential purpose.

6. Termination. This Agreement is effective until terminated. You may terminate
this Agreement at any time by destroying all copies of Software. This Agreement
will terminate immediately without notice

                                 Page 16 of 17
<PAGE>
                                                                    EXHIBIT 10.8

from Sun if you fail to comply with any provision of this Agreement. Upon
Termination, you must destroy all copies of Software.

7. Export Regulations. All Software and technical data delivered under this
Agreement are subject to US export control laws and may be subject to export or
import regulations in other countries. You agree to comply strictly with all
such laws and regulations and acknowledge that you have the responsibility to
obtain such licenses to export, re-export, or import as may be required after
delivery to you.

8. U.S. Government Restricted Rights. If Software is being acquired by or on
behalf of the U.S. Government or by a U.S. Government prime contractor or
subcontractor (at any tier), then the Government's rights in Software and
accompanying documentation will be only as set forth in this Agreement; this is
in accordance with 48 CFR 227.7201 through 227.7202-4 (for Department of Defense
(DOD) acquisitions) and with 48 CFR 2.101 and 12.212 (for non-DOD acquisitions).

9 Governing Law. Any action related to this Agreement will be governed by
California law and controlling U.S. federal law. No choice of law rules of any
jurisdiction will apply.

10. Severability. If any provision of this Agreement is held to be
unenforceable, this Agreement will remain in effect with the provision omitted,
unless omission would frustrate the intent of the parties, in which case this
Agreement will immediately terminate.

11. Integration. This Agreement is the entire agreement between you and Sun
relating to its subject matter. It supersedes all prior or contemporaneous oral
or written communications, proposals, representations and warranties and
prevails over any conflicting or additional terms of any quote, order,
acknowledgment, or other communication between the parties relating to its
subject matter during the term of this Agreement. No modification of this
Agreement will be binding, unless in writing and signed by an authorized
representative of each party.

                STARSUITE, VERSION 6.0 SUPPLEMENTAL LICENSE TERMS

These supplemental license terms ("Supplemental Terms") add to or modify the
terms of the Binary Code License Agreement (collectively, the "Agreement").
Capitalized terms not defined in these Supplemental Terms shall have the same
meanings ascribed to them in the Agreement. These Supplemental Terms shall
supersede any inconsistent or conflicting terms in the Agreement, or in any
license contained within the Software.

1. SOFTWARE LICENSE TO USE. Subject to the terms and conditions of this
Agreement, Sun grants you a non-exclusive, nontransferable, limited license to
use up to five (5) complete and unmodified copies of the binary form of the
Software installed only on computers that you operate.

2. LINUX END USER LICENSE TO USE. Subject to the terms and conditions of this
Agreement, if you are a Linux operating system end user and you received the
Software as part of a Linux operating system bundle, Sun grants you a
non-exclusive and non-transferable license for the internal use only of the
accompanying unmodified binary form of the Software.

3. EDUCATIONAL INSTITUTION LICENSE TO USE. Subject to the terms and conditions
of this Agreement, if you are an educational institution, Sun grants you a
non-exclusive and non-transferable license for the internal use only of the
accompanying unmodified binary form of the Software. In this situation "internal
use" means that your enrolled students, faculty and staff may use the Software.

4. FONT SOFTWARE. The Software contains font software which generates typeface
designs ("Font Software"). You may not separate the Font Software from the
Software. You may not alter Font Software for the purpose of adding any
functionality which such Font Software did not have when delivered to you as

                                 Page 17 of 17
<PAGE>
                                                                    EXHIBIT 10.8

part of the Software. You may not embed Font Software into a document which is
distributed as a commercial product in exchange for a fee or other consideration
(For example, End-Users shall not embed Font Software into an electronic book
that is offered to the public for a fee).

5. TRADEMARKS AND LOGOS. You acknowledge and agree as between you and Sun that
Sun owns the SUN-based, STARSUITEbased, SOLARIS-based, JAVA-based, JINI-based,
FORTE-based, iPLANET-based brand designations (including without limitation
names, marks, logos and trade dress) ("Sun Marks"), and you agree to comply with
the Sun Trademark and Logo Usage Requirements currently located at
http://www.sun.com/policies/trademarks. Any use you make of the Sun Marks inures
to Sun's benefit. These Supplemental License Terms do not grant the right to use
any Sun logos or trade dress, and the Sun Trademark and Logo Usage Requirements
do not permit any use of any Sun logos or trade dress without written permission
or license from Sun.

6. SOURCE CODE. Software may contain source code that is provided solely for
reference purposes pursuant to the terms of this Agreement. Source code may not
be redistributed unless expressly provided for in this Agreement.

7. TERMINATION FOR INFRINGEMENT. Either party may terminate this Agreement
immediately should any Software become, or in either party's opinion be likely
to become, the subject of a claim of infringement of any intellectual property
right.

8. LIMITED WARRANTY. Any implied warranties on the Software are limited to 90
days. Some states do not allow limitations on duration of an implied warranty,
so the above may not apply to you. This limited warranty gives you specific
legal rights. You may have others, which vary from state to state.

9. LIMITATION OF LIABILITY. Some states do not allow the exclusion of incidental
or consequential damages, so some of the terms of Section 5, Limitation of
Liability, above may not be applicable to you.

10. JAVA TECHNOLOGY RESTRICTIONS. You may not modify the Java Platform Interface
("JPI", identified as classes contained within the "Java" package or any
subpackages of the "Java" package), by creating additional classes within the
JPI or otherwise causing the addition to or modification of the classes in the
JPI. In the event that you create an additional class and associated API(s)
which (i) extends the functionality of the Java platform, and (ii) is exposed to
third party software developers for the purpose of developing additional
software which invokes such additional API, you must promptly publish broadly an
accurate specification for such API for free use by all developers. You may not
create, or authorize your licensees to create, additional classes, interfaces,
or subpackages are in any way identified as "Java", "javax", "sun" or similar
convention as specified by Sun in any naming convention designation. Refer to
the appropriate version of the Java Runtime Environment binary code license
(currently located at http://www.java.sun.com/jdk/index.htm]) for the
availability of runtime code which may be distributed with Java applets and
applications.

For inquiries please contact: Sun Microsystems, Inc., 4150 Network Circle,
California 95054

                                 Page 18 of 17

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