Document:

ESCROW AGREEMENT

THIS  dated  for  reference  18th  day  of  August,  2000

AMONG:

MERLIN  SOFTWARE  TECHNOLOGIES  INTERNATIONAL,  INC., a corporation incorporated
under  the  laws  of  the  State  of  Nevada

(the  "Pledgor")

AND:

NARRAGANSETT  I,  L.P., a limited partnership formed under the laws of the State
of  Delaware

("Narragansett")

AND:

NARRAGANSETT  OFFSHORE  LTD.,  a  corporation incorporated under the laws of the
Cayman  Islands

("Narragansett  Offshore")

AND:

PEQUOT  SCOUT  FUND,  L.P.,  a  limited partnership formed under the laws of the
State  of  Delaware

("Pequot")

AND:

SDS  MERCHANT  FUND,  L.P.,  a  limited partnership formed under the laws of the
State  of  Delaware

("SDS")

(together  with  Narragansett,  Narragansett  Offshore,  Pequot  and  SDS,  the
"Holders")

AND:

<PAGE>

KANE  KESSLER,  P.C.,  Attorneys-at-Law, a professional corporation incorporated
under  the  laws of the State of New York, with an address at 1350 Avenue of the
Americas,  New  York,  N.Y.  10019

(herein  "Escrow  Agent")

WITNESSES  THAT  WHEREAS:

A.          Pursuant  to  a  Note  and  Warrant  Purchase Agreement, dated as of
August  18,  2000 (the "Purchase Agreement"), among the Pledgor, Merlin Software
Technologies  Inc.  (the "Subsidiary") and each of the Holders, the Holders have
agreed  to  purchase  from  the  Pledgor  up  to an aggregate of Two Million One
Hundred  Thousand  Dollars  ($2,100,000) principal amount of Series A 10% Senior
Secured  Convertible  Notes  (the  "Notes");

B.          Pursuant  to  the Purchase Agreement, the Pledgor has entered into a
Pledge  Agreement  of even date therewith providing for the pledge of all of the
Pledged  Stock  (as  hereinafter  defined),  to secure, among things, the prompt
payment  of  all  obligations  of  the  Pledgor  under  the  Notes;  and

C.          The  Pledgor  and  each  of the Holders desire to appoint the Escrow
Agent,  and  the  Escrow  Agent  has  agreed to act as escrow agent, to hold the
Pledged  Stock  in  accordance  with  the  terms  hereof;

THEREFORE,  in  consideration  of  the  mutual  covenants  and agreements herein
contained and other good and valuable consideration (the receipt and sufficiency
of  which  are  hereby acknowledged), the parties covenant and agree as follows:

1.     DEFINITIONS  AND  INTERPRETATION

1.1     Wherever  used in this Agreement, unless the context otherwise requires,
the  following  words  and  terms  will  have  the  meanings  shown:

(a)     "Agreement"  means  this  Escrow  Agreement;

(b)     "Event  of  Default"  has  the meaning assigned in the Pledge Agreement;

(c)     "First  Tranche  Closing"  has  the  meaning  assigned  in  the Purchase
Agreement;

(d)     "Pledged  Stock" means 7,986,665 fully paid and non-assessable shares of
common  stock  in  the  capital  of  the  Subsidiary;

(e)     "Secured  Obligations" has the meaning assigned in the Pledge Agreement;

(f)     "Securities" means the Pledged Stock and the Transfer Documents, and, if
the  Securities are sold upon the occurrence of and Event of Default pursuant to
and  in  compliance  with section 4 of the Pledge Agreement, the proceeds of the
sale  of  the  Securities  as  the  context  requires;  and

<PAGE>

(g)     "Transfer  Documents"  means stock transfer power of attorney forms with
respect  to  the  Pledged Stock, duly executed by the Pledgor in blank to permit
transfer  of  the  Pledged  Stock to the Holders or their respective nominee(s).

1.2     Any  capitalized term not defined herein shall have the meaning ascribed
thereto  in  the  Pledge  Agreement.

1.3     In  this  Agreement:

(a)     the headings have been inserted for convenience of reference only and in
no  way define, limit, or enlarge the scope or meaning of the provisions of this
Agreement;

(b)     all  references  to any party, whether a party to this Agreement or not,
will  be read with such changes in number and gender as the context or reference
requires;  and

(c)     when the context hereof makes it possible, the word "person" includes in
its  meaning  any  firm  and  any  body  corporate  or  politic.

2.     DEPOSIT  OF  SECURITIES

2.1     The  Pledgor  will  cause  the  Securities to be delivered to the Escrow
Agent for deposit in escrow with the Escrow Agent on the terms of this Agreement
on  the  First  Tranche  Closing.

3.     ESCROW  PROVISIONS

3.1     The  Pledgor  hereby  directs the Escrow Agent to retain the Securities,
and  not  to  do  or  cause  anything to be done to release the same from escrow
except  in  accordance  with  this  Agreement.  The  Escrow  Agent  accepts  its
responsibilities  hereunder  and  agrees  to perform them in accordance with the
terms  hereof.

3.2     The  Escrow  Agent  will  hold  the  Securities  in  escrow  and:

(a)     will  deliver  the Securities to the Pledgor when satisfactory evidence,
as  determined by the Escrow Agent in its sole discretion, has been presented to
the  Escrow  Agent  that  the  Notes have been paid in full, and all obligations
among the Pledgor and each of the Holders and of the Escrow Agent will thereupon
cease;  or

(b)     upon  the  receipt  of  notice  from all of the Holders that an Event of
Default  has  occurred,  will  deliver  the  Securities  to  the  Holders.

4.     THE  ESCROW  AGENT

4.1     The  obligations  of  the Escrow Agent are limited to those specifically
provided  in  this  Agreement  and  no other, and the Escrow Agent shall have no
liability  under,  and  no duty to inquire into the terms and provisions of, any
agreement  between  the parties hereto.  The Escrow Agent is acting hereunder as
an  accommodation  to  the  parties  hereto.  The duties of the Escrow Agent are
purely  ministerial  in nature, and it shall not incur any liability whatsoever,
except  for

<PAGE>

its  willful  misconduct or gross negligence.  The Escrow Agent may consult with
counsel  of its choice (which may be a member of its own firm), and shall not be
liable  for  following  the advice of such counsel.  The Escrow Agent may act on
the  advice  of counsel but will not be responsible for acting or failing to act
on  the  advice  of  counsel.

4.2     The  Holders  and  the  Pledgor jointly and severally covenant and agree
from  time to time and at all times hereafter well and truly to save, defend and
hold harmless and fully indemnify the Escrow Agent, its successors, and assigns,
from and against all loss, costs, charges, suits, demands, claims, damages, fees
and  expenses  (including reasonable attorney's fees and expenses either paid to
retained  attorneys  or  amounts  representing the fair value of legal services,
based  on  its  customary  billing  rates,  rendered to itself) which the Escrow
Agent,  its  successors  or  assigns  may  at  any time or times hereafter bear,
sustain,  suffer or be put unto for or by reason arising out of or in connection
with  the  performance  of  its obligations in accordance with the provisions of
this  Agreement  or  anything in any manner relating thereto or by reason of the
Escrow  Agent's  compliance with the terms hereof.  The foregoing indemnities in
this  Section  4.2  shall  survive the resignation or substitution of the Escrow
Agent  and  the  termination  of  this  Escrow  Agreement.

4.3     In  case  proceedings  should hereafter be taken in any court respecting
the  Securities,  the Escrow Agent will not be obliged to defend any such action
or  submit  its  rights to the court until it has been indemnified by other good
and  sufficient  security  in  addition  to  the  indemnity given in Section 4.2
against  its  costs  of  such  proceedings.

4.4     The  Escrow Agent will have no responsibility in respect of the physical
loss  of  the  Securities.

4.5     The  Escrow  Agent  will not be bound in any way by any contract between
the  parties  hereto  whether  or  not it has notice thereof or of its terms and
conditions  and  the only duty, liability and responsibility of the Escrow Agent
will  be  to  hold  the Securities as herein directed and to deliver the same to
such  persons  and  other  such  conditions as are herein set forth.  The Escrow
Agent will not be required to pass upon the sufficiency of any of the Securities
or  to  ascertain whether or not the person or persons who have executed, signed
or  otherwise  issued  or  authenticated the said documents have authority to so
execute,  sign  or authorize, issue or authenticate the said documents or any of
them,  or that they are the same persons named therein or otherwise to pass upon
any requirement of such instruments that may be essential of their validity, but
it  shall  be  sufficient  for  all purposes under this Agreement insofar as the
Escrow  Agent  is  concerned  that  the  said documents are deposited with it as
herein  specified by the parties executing this Agreement with the Escrow Agent.

4.6     The  Escrow  Agent shall not have any responsibility for the genuineness
or  validity of any document or other item deposited with it or of any signature
thereon  or  for  the  identity,  authority  or right of any person executing or
depositing  the  same  and shall not have any liability for acting in accordance
with  any  written  instructions or certificates given to it hereunder signed by
the  proper  parties.

4.7     In  no  event  will  the  Escrow  Agent  be  deemed  to have assumed any
liability  or  responsibility for the sufficiency, form and manner of making any
notice  or  demand  provided  for

<PAGE>

under  this  Agreement or of the identity of the persons executing the same, but
it  shall be sufficient if any writing purporting to be such a notice, demand or
protest  is served upon the Escrow Agent in any manner sufficient to bring it to
its  attention.

4.8     In  the event that the Securities are attached, garnished or levied upon
under any court order, or if the delivery of such property is stayed or enjoined
by  any court order or if any court order, judgment or decree is made or entered
affecting  such  property  or  affecting any act by the Escrow Agent, the Escrow
Agent  may,  in  its  sole  discretion,  obey and comply with all writs, orders,
judgments or decrees so entered or issued, whether with or without jurisdiction,
notwithstanding  any provision of this Agreement to the contrary.  If the Escrow
Agent obeys and complies with any such writs, order, judgment or decrees it will
not  be  liable  to  any  of  the parties hereto or to any other person, firm or
corporation  by  reason  of  such  compliance,  notwithstanding that such writs,
orders,  judgments  or decrees may be subsequently reversed, modified, annulled,
set  aside  or  vacated.

4.9     The  Escrow  Agent  is  authorized and directed to disregard in its sole
discretion  any  and all notices and warnings which may be given to it by any of
the parties hereto or by any other person, firm, association or corporation.  It
will,  however,  obey  the  order,  judgment or decree of any court of competent
jurisdiction,  and  it is hereby authorized to comply with and obey such orders,
judgements  or decrees and in case of such compliance, it shall not be liable by
reason  thereof  to  any  of  the  parties  hereto or to any other person, firm,
association  or  corporation,  even  if  thereafter  any such order, judgment or
decree  may  be  reversed,  modified,  annulled,  set  aside  or  vacated.

4.10     If protest is made to any action contemplated by the Escrow Agent under
this  Agreement,  the Escrow Agent may continue to hold the Securities until the
right  to  the  documents  is  legally  determined  by  a  court  of  competent
jurisdiction  or  otherwise.

4.11     If  written  notice  of  protest  is  made by any of the Holders or the
Pledgor to the Escrow Agent to any action contemplated by the Escrow Agent under
this  Agreement,  and  such notice sets out reasons for such protest, the Escrow
Agent will be entitled to continue to hold the Securities until the right to the
documents  is  legally  determined  by  a  court  of  competent  jurisdiction or
otherwise.

4.12     This  Escrow  Agreement  may  be terminated at any time by and upon the
receipt  by  the  Escrow  Agent  of ten (10) days' written notice of termination
executed  by  the  Holders  and  the  Pledgor, directing the distribution of all
property  then  held  by  the  Escrow  Agent  under  and pursuant to this Escrow
Agreement.  In the event that a dispute arises in connection with the release of
the  Securities,  the  Escrow  Agent  shall  have the sole and absolute right to
resign in accordance with the provisions of this Section 4.12.  The Escrow Agent
may  resign and be discharged from its duties hereunder at any time by giving at
least ten (10) days' prior written notice of such resignation to the Holders and
Pledgor  and  specifying  a  date upon which such resignation shall take effect.
Upon receipt of such notice, a successor escrow agent shall jointly be appointed
by  the  Holders  and  Pledgor, such successor escrow agent to become the Escrow
Agent  hereunder  on  the  resignation  date  specified  in  such notice.  If no
successor  Escrow  Agent  is  appointed  prior to the date specified, the Escrow
Agent shall have the right at any time to deposit the Securities with a court of
competent  jurisdiction,  as  specified  in  Section  6.5  hereof,

<PAGE>

and the Escrow Agent shall have no further obligation with respect thereto.  The
Holders  and  Pledgor,  acting  jointly, may at any time substitute a new escrow
agent  by  giving  ten (10) days' notice thereof to the Escrow Agent then acting
and  paying  all fees and expenses of such Escrow Agent.  In the alternative, in
the  event of a dispute in relation to the release of the Securities, the Escrow
Agent  may  resign  fifteen  (15)  days  after  giving  written  notice  of such
resignation  to  the  parties  hereto  and  depositing  the  Securities  with an
appropriate  court,  as  specified  in  Section 6.5 hereof, and the Escrow Agent
shall have no further obligation with respect hereto or under this Agreement, in
any manner.  This Escrow Agreement shall automatically terminate if and when all
of  the Securities shall have been distributed by the Escrow Agent in accordance
with  the  terms  of  this  Escrow  Agreement.

4.13     Notwithstanding  anything  herein to the contrary, the Escrow Agent may
act  upon  any  written instructions given by the Pledgor and all of the Holders
jointly.

4.14     If  any  dispute should arise with respect to the ownership or right of
possession of the Securities, or should the Escrow Agent, in its sole judgement,
receive  conflicting  instructions with respect to the instructions contained in
this  Agreement  or  to  any distribution of the Securities, the Escrow Agent is
authorized  and  directed  to  retain  in  its  possession, without liability to
anyone,  all or any portion of the Securities until such dispute shall have been
settled  either  by  agreement  of  the  parties  concerned by filing of written
directions  signed  by the Holders and Pledgor to the Escrow Agent or by a final
decree,  but  the Escrow Agent shall be under no duty whatsoever to institute or
defend any such proceedings.  Notwithstanding anything to the contrary contained
herein,  in  the event of any dispute arising between any of the Holders and the
Pledgor  or between any other persons or between any of them with respect to the
Pledge Agreement, this Agreement or any matters arising thereto, or with respect
to  the  Pledged  Stock, the Escrow Agent may in its sole discretion deliver and
interplead  the  Securities  into court, as specified in Section 6.5 hereof, and
such  delivery  and  interpleading  will be an effective discharge to the Escrow
Agent.

4.15     The Escrow Agent shall be promptly reimbursed, jointly and severally by
the Holders and Pledgor, for reasonable expenses incurred by the Escrow Agent in
the performance of services pursuant to this Escrow Agreement including, but not
limited  to,  legal fees, including all fees and expenses incurred in connection
with  its  resignation  pursuant  to  Section  4.12.

4.16     The parties hereto hereby expressly agree, acknowledge and consent that
the  Escrow  Agent  has  served  as  legal  counsel for the Holders and shall be
permitted  to provide legal counsel to any and all parties to this Agreement, in
the  future,  notwithstanding the agreements set forth herein including, without
limitation,  any controversy or dispute arising out of this Escrow Agreement and
waive  any  claims  of  conflict  of  interest  relating  thereto.

4.17     The  Holders  and  Pledgor  shall  each  bear all of their own fees and
expenses  incurred  by  them  in resolving any dispute arising under this Escrow
Agreement.  The  Holders  and  Pledgor shall jointly and severally reimburse the
Escrow  Agent  for any costs incurred by the Escrow Agent in connection with any
dispute arising under this Agreement.  The Holders and Pledgor shall jointly and
severally  reimburse  the Escrow Agent for any costs incurred in the performance
of  its  duties  hereunder.

<PAGE>

5.     COUNTERPARTS

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

6.     GENERAL

6.1     Except  as  herein  otherwise  provided,  no  subsequent  alteration,
amendment, change or addition to this Agreement will be binding upon the parties
hereto  unless  reduced  to  writing  and  signed  by  the  parties.

6.2     This  Agreement  will  enure  to  the benefit of and be binding upon the
parties  and  their respective heirs, executors, administrators, successors, and
assigns.

6.3     The  parties  will execute and deliver all such further documents, do or
cause  to  be  done  all such further acts and things, and give all such further
assurances  as may be necessary to give full effect to the provisions and intent
of  this  Agreement.

6.4     This  Agreement  shall be governed by, and construed in accordance with,
the  laws  of  the state of New York applicable to contracts executed, and to be
fully  performed,  in  such  state.

6.5     Each party hereby expressly and irrevocably agrees and consents that any
suit,  action or proceeding arising out of or relating to this Agreement and the
transactions contemplated herein may be instituted in any state or federal court
sitting  in  the county of New York, state of New York, United States of America
and,  by  the  execution  and  delivery  of this Agreement, expressly waives any
objection that it may have now or hereafter to the laying of the venue or to the
jurisdiction  of  any  such  suit, action or proceeding, and irrevocably submits
generally  and unconditionally to the jurisdiction of any such court in any such
suit,  action  or  proceeding.

6.6     Any  notice  required or permitted to be given under this Agreement will
be  in  writing  and may be given by delivering, sending by electronic facsimile
transmission  or  other means of electronic communication capable of producing a
printed  copy,  or  sending  by prepaid registered mail posted in Canada and the
United States, the notice to the addresses set forth in the Pledge Agreement (or
to  such other address or facsimile number as any party may specify by notice in
writing to another party).  Any notice delivered or sent by electronic facsimile
transmission  or  other means of electronic communication capable of producing a
printed  copy  on  a  business  day  will  be  deemed  conclusively to have been
effectively  given  on the day the notice was delivered, or the transmission was
sent  successfully,  as  the case may be.  Any notice sent by prepaid registered
mail  will  be  deemed  conclusively to have been effectively given on the third
business day after posting; but if at the time of posting or between the time of
posting  and  the  third  business day thereafter there is a strike, lockout, or
other  labour  disturbance affecting postal service, then the notice will not be
effectively  given  until  actually  delivered.

6.7     Time  is  of  the  essence  of  this  Agreement.

<PAGE>

                                      - 9 -
6.8     Delivery  of  an executed copy of this Agreement by electronic facsimile
transmission  or  other means of electronic communication capable of producing a
printed  copy  will  be deemed to be execution and delivery of this Agreement on
the  date of such communication by the party so delivering such copy, subject to
delivery  of  an  originally  executed copy of this Agreement to the other party
hereto  within  two  weeks  of  the  date  of  delivery of the copy sent via the
electronic  communication.

6.9     It  is  understood  and agreed by the parties to this Agreement that the
only  duties  and  obligations of the Escrow Agent are those specifically stated
herein  and  no  other.

<PAGE>

IN  WITNESS  WHEREOF  the  parties have caused this Agreement to be executed and
delivered  as  of  the  date  first  above  written.

MERLIN  SOFTWARE  TECHNOLOGIES  INTERNATIONAL,  INC.

By:/s/ signed
   Authorised  Signatory

NARRAGANSETT  I,  L.P.

By:/s/ signed
   Joseph  L.  Dowling
   Managing  Member

NARRAGANSETT  OFFSHORE  LTD.
BY  LEO  HOLDING,  L.L.C.,  ITS  INVESTMENT  MANAGER

By:/s/ signed
   Name:  Joseph  L.  Dowling
   Title:  Managing  Member

PEQUOT  SCOUT  FUND,  L.P.
BY  PEQUOT  CAPITAL  MANAGEMENT,  INC.,  ITS  INVESTMENT  ADVISOR

By:/s/ signed
   Name:_________________________
   Title:  Chief  Accounting  Officer

SDS  MERCHANT  FUND,  L.P.
BY  SDS  CAPITAL  PARTNERS,  L.L.C.,  ITS  MANAGING  MEMBER

By:/s/ signed
   Name:  Steven  Derby
   Title:  Managing  Member

KANE  KESSLER,  P.C.

By:/s/ signed
   Authorized SignatoryOEM Agreement

This OEM Agreement is dated October 16, 2000 and is by and between the following
Parties:

Caldera:     Caldera  Systems,  Inc.
             240  West  Center  Street
             Orem,  UT  84057

Tel.:    (801)  765-4999
Fax:     (801)  765-1313

OEM:     Merlin  Software  Technologies  Inc.
         6101  North  31st  Way
         Phoenix,  AZ  85016

Tel.:     602-625-9651
Fax:

and  is  for  the  following  Territory:
              North America

                              Terms and Conditions

     1.     Authorized  OEM.  Subject  to  the  terms  and  conditions  of  this
Agreement,  OEM  is an authorized original equipment manufacturer or value added
reseller  of  Caldera  with  respect to the Software as combined or bundled with
OEM's  Product  as  defined  below.

     2.     Software.  "Software"  shall mean the software product(s) identified
in  Appendix  A.  "Software" includes any packaging, documentation and materials
included  by  Caldera  with  the  Software provided to OEM under this Agreement.
Caldera  may  discontinue  any  of  the  Software  at  any time.  Caldera has no
obligation  to  make discontinued Software available to OEM, and may delete such
discontinued Software from Appendix A.  The Parties may add Software to Appendix
A  at  any  time  by mutual written agreement.  Such added Software shall become
"Software" governed by this Agreement.  Caldera has no obligation to localize or
translate  any  of  the Software or its documentation or other materials for the
Territory.

     3.     Caldera  Software,  Third Party Software and GPL Software.  Software
may  include  any  one  or more of the following:  Caldera Software, Third Party
Software,  and  GPL Software.  The license agreements and/or documentation which
accompany  a  Software  product  will identify the Caldera Software, Third Party
Software  and  GPL  Software  included  in  the  Software  product.

(a)     "Caldera  Software"  consists of the computer programs, databases and/or
other  works  of  authorship which are licensed or sublicensed by Caldera to the
Customer.  Such  license  or  sublicense  is  governed  by  a  license agreement
(included  in  or  with  the  Caldera Software) between Caldera Software and the
Customer.  Caldera  Software  and  all  rights

<PAGE>

to  use and copy Caldera Software are governed the applicable license agreement.
Nothing  in  this  OEM  Agreement gives OEM the right or authorization to use or
copy  any  Caldera  Software.  OEM and Customers are not entitled to any Caldera
Software  source  code  unless  such  source  code is included by Caldera in the
Software  and  the  license.

(b)     "Third  Party  Software"  consists  of  the computer programs, databases
and/or  works  of  authorship  which  are licensed or sublicensed by third party
licensors  to Customers.  Typically, such license or sublicense is governed by a
license  agreement  (included  in  or with the Software) between the third party
licensor  and the Customer.  Third Party Software and all rights to use and copy
Third  Party Software are governed the applicable license agreement.  Nothing in
this  OEM  Agreements  gives  OEM  the right or authorization to use or copy any
Third  Party  Software.  OEM  and  Customers are not entitled to any Third Party
Software  source  code  unless  such  source code is included by the third party
licensor  in  the  Third  Party  Software  and  the  license.

(c)     "GPL Software" consists of the computer programs, databases and/or works
of  authorship  distributed  by  Caldera under the terms of a GNU General Public
License.  The  GNU  General  Public  License  governs  the  GPL Software and the
copying, distribution and modification of the GPL Software.  With respect to GPL
Software, this Agreement is subject to the applicable version of the GNU General
Public  License.  A  copy  of  each applicable version of the GNU General Public
License is available from Caldera.  All GPL Software is provided "as is" without
any  warranty.  GPL  Software  source  code  will  be  available  to  Customers
consistent  with  the  requirements  of  the  applicable  GNU  Public  License.

(d)     Licensed,  Not  Sold.  Caldera  Software,  Third  Party Software and GPL
Software  are not sold, but are licensed or sublicensed.  In this Agreement, any
reference  to the purchase, sale or resale of a Software or to purchase, sell or
resell  Software  means,  with  respect  to the Caldera Software and Third Party
Software  in  such  Software,  a  purchase,  sale  or  resale  of the license or
sublicense  or  to  purchase,  sell  or  resell  the license or sublicense.  GPL
Software  licenses  and  sublicenses are free, but a fee for distribution (e.g.,
transferring  a  copy) may be charged by Caldera.  Therefore, in this Agreement,
any  reference  to the purchase, sale or resale of Software or to purchase, sell
or resell Software means, with respect to the GPL Software in such Software, the
payment  or  obligation  to  pay  for such distribution.  Ownership of copies of
Caldera  Software,  Third  Party  Software  or  GPL  Software is governed by the
applicable  license  agreement.

(e)     New Versions.  New versions of Software may be made available to Caldera
to  OEM  as  added  Software  under  Section  2  above.

(f)     Maintenance  Releases.  All  Software  maintenance  releases,  fixes,
patches,  work-around solutions, upgrades, and updates made available by Caldera
to  OEM  shall  be  deemed  part  of  the  Software.

     4.     OEM's  Product.  "OEM's  Product"  shall mean the hardware, software
and/or  other products identified in Appendix B attached hereto.  Appendix B may
also  includes  a

<PAGE>

description  of the manner in which OEM will combine or bundle the Software with
OEM's  Product  and  the  "value  added"  which  OEM  brings  to  the  Software.

     5.     OEM  License.  Subject to the terms and conditions of this Agreement
and  OEM's  compliance  therewith,  OEM is authorized and licensed to combine or
bundle  Software  into  or  with  OEM's Product and to distribute copies of such
combined  or  bundled  Software with OEM's Product to Customers in the Territory
only  (the "OEM License").  Copies of the Software may not be distributed by OEM
independent  of  OEM's  Product  or as a stand-alone product.  The entirety of a
Software  product  must  be  included  in  the  combination or bundle with OEM's
Product.  OEM's  rights  are limited to the Territory and are nonexclusive.  The
Territory is defined above.  Rights not expressly granted to OEM are reserved by
Caldera.  With  respect  to GPL Software, the restrictions of this Section 5 and
any  other  restrictions  of  this  Agreement  are subject to the applicable GNU
General  Public  License.

     6.     Customers.  "Customers" mean end user customers of OEM's Product who
use  the  Software  on,  in  or  in  conjunction  with  OEM's  Product.

     7.     End User Software Licenses.  To use the Software, each Customer must
first  accept  Caldera's then-current end-user license agreement.  A copy of the
end-user  license agreement is attached hereto as Appendix D will be provided by
Caldera  to OEM for distribution by OEM to Customers.  If a new form of end-user
license  agreement  is  adopted  by  Caldera,  a  copy  of such new form will be
provided  to  OEM  as  a replacement.  Caldera may change its end-user licensing
procedures.  Use  of the Software by a Customer will be governed by the end-user
license  agreement.  This  Section is subject to subsections (a), (b) and (c) of
Section  3  above.

     8.     Purchase  Orders.  OEM  will  purchase  the  applicable  Software
product(s)  from Caldera for distribution to Customers.  The applicable fees set
forth  in  Appendix  C.  To purchase Software products, OEM will submit purchase
orders to Caldera stating the quantity and type of Software product needed.  OEM
shall pay the applicable fees to Caldera within 30 days of the date of Caldera's
invoice.  Any other terms or conditions included by OEM with a purchase order or
other  document  that  are in addition to or different from or inconsistent with
the  terms and conditions of this Agreement shall be of no effect, unless agreed
to  by  Caldera  in  writing  in  each  case.

     9.     Fees  and  Discounts.  The discount to which OEM is entitled and the
discounted  fees  payable  by  OEM are set forth in Appendix C.  All payments to
Caldera  shall  be  made  in  U.S.  Dollars.  All  references in this Agreement,
including  the  Appendices,  to  $  to  dollars  shall  mean  U.S.  Dollars.

     10.     Updates  to  Software.  After a Customer receives OEM's Product and
the  Software,  if  the  Customer  receives an update, upgrade, enhancement, new
version  or  new  release  of,  or  to,  the  Software, OEM will pay Caldera the
discounted  fee  (as specified by Caldera) for the update, upgrade, enhancement,
new version or new release.  This payment shall be in addition to the discounted
fee  paid  for  the  original  Software  product.

<PAGE>

     11.     Late  Payments.  If  any  payment  is not made by OEM when due, OEM
shall  pay interest to Caldera at the rate of 1.5% per month or the highest rate
allowed by applicable law (whichever is less) until payment is received in full.

     12.     Quantity  and  Credit Limits.  Caldera may establish a credit limit
and/or  quantity  limit  for  OEM.  These  limits  may be revised at any time by
Caldera.  Caldera  has  no  obligation in excess of the credit limit or quantity
limit.  Caldera  may  at  any  time  require  payment  in  advance.

     13.     Termination  of  Software  Licenses.  Caldera  may  terminate  any
Software  license  for  which  payment  is  not received in full.  Such right to
terminate  does  not  apply  to  GPL  Software.

     14.     Costs  of  Collection.  OEM  shall  pay  Caldera  for all costs and
expenses  incurred  in  collecting  from OEM any amounts not paid when due or in
repossessing  Software,  including  reasonable  attorneys'  fees.

     15.     Taxes.  OEM  shall  pay  any sales, use, excise or other taxes, and
any  duties, tariffs, fees, and other government assessments that may be imposed
by  or  payable  to  any U.S., state, provincial, local, or foreign authority or
agency upon or relating to this Agreement or any of the licensing, distribution,
or  other  transactions  contemplated  herein.

     16.     Guarantees  and  Other Warranties.  Caldera may give a 30 day money
back  guarantee  to  Customers.  OEM  will honor this guarantee.  If Software is
returned or erased by a Customer for a refund in accordance with this guarantee,
then  OEM  will  make the refund to the Customer and Caldera shall refund to OEM
the  discounted  license  fee  paid  by  OEM  therefor.  OEM will be refunded by
Caldera  within  30  days  of  written notification by OEM to Caldera.  OEM will
cooperate  with Caldera in honoring any other written warranties made by Caldera
to Customers that are included in or with the Software license agreement or made
by  Caldera  in  advertisements  or  other  printed materials.  This may include
returns  for  refunds or replacements.  Guarantees and warranties are subject to
change  by  Caldera.  Caldera  has  no  obligation  under  outdated  or  expired
guarantees  or  warranties.  The  30  day  money  back  guarantee  and the other
warranties  referred  to  in  this  Section,  are  not given to OEM, but only to
Customers.

     17.     Support.  OEM  shall  be  entitled  to  the  then-current  level of
support  provided  by  Caldera  under  its  Authorized  OEM  Program, including:

     (a)     Sales  Literature.  OEM  shall  receive an initial package of sales
literature  for  the  Software  at  no  charge.  Thereafter,  OEM  may  request
additional  and updated sales literature as reasonably needed.  Caldera reserves
the  right  to charge OEM a reasonable fee for such additional and updated sales
literature.

     (b)     Telephone Support.  Software telephone support will be available to
OEM  during  Caldera's  then-current  normal  telephone  support  hours.

     (c)     Software  Training.  OEM's  personnel  may attend Software training
courses offered by Caldera at Caldera's facilities as part of the Authorized OEM
Program.  OEM  shall  be  responsible  for  all  travel and other expense of its
personnel.

<PAGE>

18.     Obligations  of  OEM.  The  obligations  of  OEM  include the following:

     (a)     Defects  and  Complaints.  OEM shall inform Caldera of any Software
defects  of  Customer  complaints  which  come  to  the  attention  of  OEM.

     (b)     Cooperation.  If  Caldera desires to recall any Software from OEM's
Customer's  or  to  distribute  replacements,  maintenance  fixes or work-around
solutions  to  OEM's Customers, OEM shall provide all cooperation and assistance
reasonably  requested  by  Caldera.

     (c)     Warranties.  OEM  is  not  authorized  by  Caldera  to  make  any
guarantees  or  warranties  concerning the Software.  OEM is responsible for all
warranties,  representations and promises made by OEM to Customers.  Caldera has
no  responsibility  or  obligation  with  respect  thereto.

     (d)     Compliance  with  Laws.  OEM  shall  comply  with  the  laws of all
relevant  jurisdictions  in  the  Territory  and  OEM  will obtain all necessary
licenses  and  authorizations  from  the relevant governmental authorities to do
business and distribute Software in the Territory as provided in this Agreement.

     (e)     Notices.  OEM  shall  include  on  all  copies  of  the  Software
distributed  by OEM such copyright, trademark, and proprietary rights notices as
Caldera  may reasonably request.  At a minimum, OEM shall include on such copies
of  the  notices  found  on  the Software products and documentation provided by
Caldera  to  OEM.

     (f)     Export  Act.  OEM  hereby  warrants  and certifies that no Software
will be made available or exported by OEM to any country in contravention of any
law  or  regulation  of the United States or any of its agencies, including, but
not  limited  to, the Export Administration Act of 1979 and regulations relating
thereto.  This  Agreement  is  subject  to  such  laws  and  regulations.

     (g)     Indemnification.  OEM  shall indemnify Caldera against, and hold it
harmless  from,  any  claims  by third parties relating to OEM's Product and any
expenses,  judgments,  awards, settlements, attorneys' fees, and losses relating
to  such  claims.

     (h)     Modifications  and  Enhancements.  If  and  to  the  extent  that
modifications  or enhancements to GPL Software are made by or for OEM, then such
modifications  and  enhancements  shall  be:  (i) governed by the applicable GNU
General Public License and OEM shall comply therewith, and (ii) freely available
to  the  public.  Furthermore,  OEM  shall promptly give complete copies of such
modifications  and  enhancements  (including binary and source code) to Caldera,
and  Caldera  may  use,  copy,  distribute,  publish,  modify  and  enhance such
modifications  and  enhancements  and  authorize  others  to  do so, without any
obligation  to  OEM and without restriction other than any applicable provisions
of  the  applicable  GNU  General  Public  License.  If  and  to the extent that
modifications  or  enhancements to Caldera Software are made by or for OEM, then
such  modifications  and  enhancements  shall  be governed by and subject to any
restrictions  imposed  by  Caldera.  OEM  shall promptly give complete copies of
such  modifications  and  enhancements  (including  binary  and  source code) to
Caldera, and Caldera may use, copy, distribute, publish, modify and enhance such
modifications  and  enhancements  and  authorize  others  to  do so, without any
obligations  to  OEM  and  without  restriction.

<PAGE>

     19.     Termination.  Either  Party  may  terminate  this Agreement upon 30
days advance written notice to the other Party.  However, such termination shall
not  apply  to,  and  this Agreement shall continue to govern, Software products
purchased  or  issued prior to the date of termination and any disputes relating
to  such  purchased  or issued Software products.  Section 15 and Subsections 18
(f),  (g),  (h)  and  (i)  shall survive termination.  Amounts payable by OEM to
Caldera shall not be affected, reduced or negated by such termination, and shall
be paid by OEM immediately.  Upon termination of this Agreement, OEM shall cease
to  have any rights under Caldera's Authorized OEM Program, including Section 17
of  this  Agreement.

     20.     Standard  Warranty.  The  then-current warranties and guarantees of
Caldera  applicable  to  the  Software  and stated in the licensed agreements or
other  printed  materials  provided  by  Caldera  with the Software are the only
warranties  or  guarantees  made  by  Caldera  relating  to  the Software.  Such
warranties  and  guarantees are subject to any and all accompanying disclaimers,
limitations  and  other  terms.

     21.     Disclaimers.  CALDERA  MAKES  NO  WARRANTY  EXCEPT AS EXPRESSLY SET
FORTH IN THIS AGREEMENT.  ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR
A  PARTICULAR  PURPOSE  AND  NONINFRINGEMENT  ARE  DISCLAIMED  AND  EXCLUDED.

     22.     Sole and Exclusive Remedy.  THIS AGREEMENT DEFINES AND PROVIDES THE
SOLE  AND  EXCLUSIVE  REMEDY  OR  OEM  AND  THE  SOLE AND EXCLUSIVE LIABILITY OF
CALDERA.

     23.     Limitation  on  Liability.  IN  NO  EVENT SHALL CALDERA'S AGGREGATE
LIABILITY ARISING FROM OR RELATING TO THIS AGREEMENT OR THE SOFTWARE (REGARDLESS
OF  THE  FORM OF ACTION, WHETHER BY CONTRACT, WARRANTY, TORT, MALPRACTICE, FRAUD
AND/OR  OTHERWISE)  EXCEED  THE  AMOUNT  ACTUALLY PAID BY OEM TO CALDERA.  IN NO
EVENT  SHALL  CALDERA  BE  LIABLE  FOR  ANY  CONSEQUENTIAL,  SPECIAL,  INDIRECT,
INCIDENTAL  OR  PUNITIVE  DAMAGES,  EVEN  IF  CALDERA  HAS  BEEN  ADVISED OF THE
POSSIBILITY  OF  SUCH  DAMAGES.

     24.     Assignment  and  Successors.  This  Agreement  is not assignable or
transferable,  except  that  this  Agreement  may  be assigned or transferred by
Caldera  to  any  third  party  who  acquires  substantially  all  of  Caldera's
intellectual  property  in  and  to  the  Caldera  Software.

     25.     Government Law and Forum.  This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Utah and the
United  States  of America, specifically excluding the United Nations Convention
on  Contracts  for the International Sale of Goods, and without giving effect to
conflict  of  laws.  Any  litigation or arbitration between the Parties shall be
conducted  exclusively  in  the  state  of  Utah.

     26.     Entire  Agreement.  This Agreement (including its Appendices):  (i)
represents  the  entire  agreement  between  the Parties relating to the subject
matter  of this Agreement, (ii) supersedes all prior agreements, understandings,
representations  and  warranties  relating  to  the

<PAGE>

subject  matter  of  this  Agreement, and (iii) may only be amended, canceled or
rescinded  in  writing  and  signed  by  both  Parties.

     27.     Force  Majeure.  Except  for  obligations  to make payment, neither
Party  shall be deemed in breach of this Agreement for any failure to perform an
obligation  where  such  failure is caused by Acts of God or other circumstances
beyond  the  control  of  that  Party.

     28.     Waiver.  Any waiver under this Agreement must be in writing and any
waiver  of  one  event  shall not be construed as a waiver of subsequent events.

     29.     Attorney's  fees.  In  the  event  of any litigation or arbitration
between  the  Parties relating to this Agreement or the Software, the prevailing
Party  shall  be  entitled  to  recover  from  the  other  Party  all reasonable
attorneys'  fees  and other reasonable costs incurred by the prevailing Party in
connection  therewith.

     30.     Construction.  This  Agreement  represents  the wording selected by
the  Parties  to define their agreement and no rule of strict construction shall
apply against either Party.  This Agreement is written in, and shall be governed
by,  the  English  language.

     31.     Severability.  In  case any one or more of the provisions contained
herein  shall,  for any reason, be held to be invalid, illegal, or unenforceable
in  any  respect,  such  invalid, illegal or unenforceable provision(s) shall be
curtailed,  limited,  and  construed  to  the extent necessary (and only to such
extent)  to  remove such invalidity, illegality or unenforceability with respect
to  the  applicable  law  as it shall then be applied.  If it is not possible to
curtail,  limit  and/or  construe  such provisions to make them valid, legal and
enforceable,  then such provisions shall be severed from this Agreement, and the
other  provisions  of  this  Agreement  shall  not  be  affected  thereby.

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

AGREED  TO  AND  ACCEPTED  BY:

OEM:     Merlin  Software  Technologies  Inc.

By  (signature):     /s/  S.  Montgomery

Name  (print):       S.  MONTGOMERY

Title:               V.P.  SALES.

CALDERA  SYSTEMS,  INC.  ("Caldera")

By  (signature):    /s/ signed

Name  (print):      Alan Hansen

Title:              CFO

<PAGE>

                                   APPENDIX A
                                    SOFTWARE

                                  eDesktop 2.4
                                   eServer 2.3

<PAGE>

                                   APPENDIX B
                                  OEM'S PRODUCT

Describe  the manner in which OEM will combine or bundle the Software with OEM's
Product  and  the  "value  added"  which  OEM  brings  to  the  Software:

OEM will bundle applicable Caldera products with its PerfectBACKUP+ software and
not  sell  Caldera's  products  separately.

<PAGE>

                                   APPENDIX C
                               FEES AND DISCOUNTS

                           eDesktop 2.4 $13.50 (U.S.)
                            eServer 2.3 $40.00 (U.S.)

<PAGE>

                                   APPENDIX D
                           END USER LICENSE AGREEMENT

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