Sample Business Contracts

Letter of Understanding - I-Storm Inc. and Sun Microsystems Inc.

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                           Sun Microsystems CyberStore
                             Letter of Understanding

This Letter summarizes the mutual interest of I-Storm, Inc. ("ISTM") and Sun
Microsystems ("SUN") in exploring the possibility of forming a
distribution/reseller agreement to develop and operate a retail website under
the SUN name dedicated to selling SUN and compatible products to customers over
the Internet. This Letter of Understanding is strictly preliminary and is
intended primarily to establish a basis for possible future definitive
discussions. This Letter does not obligate either party to enter into a binding

Business Purpose: To explore the possibility of developing and operating an
Internet website ("CyberStore") dedicated to exclusively selling SUN and
compatible products to retail customers for profit.

Authorization to Proceed with Feasibility Study: By signing this Letter, and
subject to the execution of an appropriate Confidentiality Agreement, SUN
authorizes ISTM to begin a Feasibility Study at ISTM's sole expense to analyze
SUN'S current infrastructure and business processes as a basis for forming a
CyberStore enterprise dedicated to SUN products. The intent of this study is to
create a business case for managing and maintaining the SUN's online commerce in
an outsource model. This study does not obligate SUN to move forward on the
formation of a CyberStore enterprise or any other relationship, but is intended
to provide a framework for future discussions, if any. Sun may terminate this
Feasibility Study at any time without subjecting Sun to any liability

For I-Storm, Inc.                                For Sun Microsystems:

/S/ Steve Venuti                                 /S/ Bobbi Burns
----------------                                 ---------------

Title:  VP,GM                                    Title: Director, Web Commerce

12/7/98                                          12/4/98
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Date                                             Date