U S WIRELESS CORP
10QSB, EX-10, 2000-11-13
RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT
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                                  EXHIBIT 10.94

This Consulting Services Agreement ("Agreement") is made between HEWLETT-PACKARD
COMPANY, a Delaware Corporation ("HP") and U.S. WIRELESS CORPORATION, a Delaware
corporation ("Customer"), as of July 27, 2000 ("Effective Date").

The purpose of this Agreement is to set forth the mutually  agreeable  terms and
conditions  under  which  HP  will  perform  Consulting   Services  and  provide
Deliverables to Customer according to one or more Statements of Work.


1.   DEFINITIONS

     a) "Consulting  Services"  (sometimes  referred to as the "Work") refers to
        such activities as analysis, design, planning, development,  consulting,
        implementation,  education, training and project management as described
        in each  individual  Statement  of Work.  Consulting  Services  may also
        include  other types of services  described  more  specifically  in each
        individual Statement of Work (as hereinafter defined).

     b) "Deliverables"  means the results of the Consulting Services provided by
        HP to Customer as described in each Statement of Work.  Unless otherwise
        agreed in the  Statement of Work or any ancillary  agreements  hereto or
        thereto,  the term  Deliverables  does not include custom hardware,  for
        which there is a separate agreement.

     c) "Software"  means  one  or  more  programs   (including  any  associated
        documentation) capable of operating on a controller,  processor or other
        hardware device.

     d) "Statement of Work" means a document  attached to this  Agreement  which
        describes a specific project,  engagement or assignment  ("Project") for
        which HP will provide  Consulting  Services to  Customer.  More than one
        Statement of Work may be attached to this Agreement from time to time.


2.   HP OBLIGATIONS

     a) HP will comply with the general  obligations  specified  below  together
        with any specific HP obligations  described in a Statement of Work, in a
        timely manner. HP will use reasonable  commercial efforts to perform the
        Consulting Services and provide the Deliverables  specifically described
        in one or more  Statements  of Work in  accordance  with the  terms  and
        conditions  of this  Agreement.  Customer  and HP will  sign a  separate
        Statement of Work for each Project that exceeds  $10,000,  which will be
        incorporated  by reference  into this  Agreement  upon  execution by the
        parties. Each Statement of Work will: (i) be made in writing in the form
        attached as Exhibit A, (ii)  incorporate  by reference  this  Agreement,
        (iii)  be  numbered  consecutively  on a  chronological  basis,  (iv) be
        executed by  authorized  representatives  of Customer and HP, and (v) be
        considered an individual agreement separate from all other Statements of
        Work.  Individual  Statements  of  Work  should  address  at  least  the
        following areas:

        1.  Project description

        2.  Price, payment and delivery schedules

        3.  Scope of Consulting Services

        4.  Acceptance criteria

        5.  Nature of Deliverables

        6.  Project coordination

     b) For all Projects  under a value of $10,000,  Customer's  purchase  order
        referencing  this Agreement will constitute the applicable  Statement of
        Work upon acceptance by HP.

     c) Unless otherwise  agreed,  Consulting  Services will be performed during
        HP's normal business hours.

     d) HP will use reasonable  commercial  efforts to provide the  Deliverables
        and perform the  Consulting  Services in  accordance  with the  delivery
        schedule specified in each Statement of Work.
<PAGE>
     e) HP  may  select  qualified  and  reputable   subcontractors  to  perform
        Consulting Services and/or provide Deliverables.  HP shall provide prior
        notification of all proposed subcontractors,  however, Customer reserves
        the right from time to time at its discretion,  to request that HP cease
        utilizing   or  not  retain  any   particular   company  or   individual
        subcontractor.  All subcontractors shall be required to agree in writing
        to the  terms and  conditions  stated  herein,  and  execute a  separate
        confidentiality  agreement.  With respect to subcontractors hired by HP,
        they shall be paid by HP. All  agreements  between  HP and  entities  or
        subcontractors  engaged by HP to perform any work or supply Deliverables
        in  connection  with a Statement of Work shall be in writing,  a copy of
        which shall be provided to Customer  with  financial  terms  redacted as
        deemed reasonably  necessary or desirable by HP. HP shall coordinate all
        Work to be performed,  testing,  inspections  and progress  reports with
        Customer  and  its  representatives  as  set  forth  in  the  applicable
        Statement of Work.

     f) HP will  appoint a  representative  to  supervise  and  coordinate  HP's
        performance of Consulting  Services,  who will provide  professional and
        prompt liaison with Customer, have the necessary expertise and authority
        to commit HP, be  available  at all times,  as  reasonably  necessary in
        light  of  the  requirements  and  schedules  included  as  part  of the
        Statement of Work for a Project,  (or  designate  an alternate  with the
        same level of authority in the event of unavailability caused by illness
        or other valid reasons), and meet with the Customer's  representative at
        regular  intervals to be agreed upon to review  progress and resolve any
        issues  relating  to the  Consulting  Services or  Deliverables.  HP may
        change its  representative  at any time upon 30 days  written  notice to
        Customer.  Notwithstanding HP agrees not to change the representative if
        it shall  adversely  impact the  timely  performance  of the  Consulting
        Services,  unless  such  change is the result of a force  majuere  event
        including  termination or serious illness of the HP representative,  and
        Customer shall not be required to incur any additional costs as a result
        of this change.

g)       Except as provided herein or unless  otherwise agreed in a Statement of
         Work, HP is not responsible for providing  continuing  support services
         for any Deliverables.


3.   CUSTOMER OBLIGATIONS

     a) Customer  will  comply  with the  general  obligations  specified  below
        together with any specific Customer obligations described in a Statement
        of Work, in a timely manner.

     b) Customer  acknowledges  that HP's  ability  to  deliver  the  Consulting
        Services is dependent in part upon  Customer's  commercially  reasonable
        cooperation  with HP, as well as the  accuracy and  completeness  of any
        information  and data  Customer  provides  to HP which is  stated in the
        Statement of Work as critical to the Project. Therefore, Customer will:

        i.  Provide  HP  with  access  to,  and  use  of,   information,   data,
            documentation,  computer time, facilities,  working space and office
            services  commercially   reasonably  necessary,   in  light  of  the
            requirements and schedules included as part of the Statement of Work
            for a Project.

        ii. Appoint a  representative  who will provide  professional and prompt
            liaison  with HP, have the  necessary  expertise  and  authority  to
            commit Customer,  be available at all times, as reasonably necessary
            in light of the requirements  and schedules  included as part of the
            Statement  of Work for a  Project,  when HP's  personnel  are at the
            Customer's  site (or  designate an alternate  with the same level of
            authority in the event of unavailability  caused by illness or other
            valid  reasons),  and meet  with the HP  representative  at  regular
            intervals  to be agreed  upon to review  progress  and  resolve  any
            issues relating to the Consulting Services or Deliverables. Customer
            may  change  its  representative  at any time  upon 30 days  written
            notice to HP.  Notwithstanding  Customer  agrees  not to change  the
            representative  if it shall adversely impact the timely  performance
            of the  Consulting  Services,  unless such change is the result of a
            force  majuere event  including  termination  or serious  illness of
            Customer's representative, and HP shall not be required to incur any
            additional costs as a result of this change.

     c) Customer will be responsible for  maintaining an external  procedure for
        reconstruction  of lost or altered files, data or programs to the extent
        deemed necessary by Customer,  and for actually  reconstructing any such
        materials.

     d) Subject to the  specific  obligations  of HP under a Statement  of Work,
        Customer  will be  responsible,  upon  receipt from HP, and at all times
        thereafter,   for  the  supervision,   management  and  control  of  the
        Deliverables and any results obtained from the  Deliverables,  including
        without  limitation all responsibility for maintenance of proper machine
        configuration,  audit controls,  operating methods,  error detection and
        recovery procedures, back-up plans, security, insurance, maintenance and
        all  other   activities   necessary  to  enable   Customer  to  use  the
        Deliverables.
<PAGE>
     e) Except as  expressly  provided  in this  Agreement,  and  except for any
        equipment  supplied  by HP which HP  warrants  is Year  2000  compliant,
        Customer  has  sole   responsibility  to  ensure  that  its  information
        technology environment is Year 2000 compliant.  HP is not providing Year
        2000 services (for example, Year 2000 assessment, conversion or testing)
        under  this  Agreement.  Customer  acknowledges  that  HP  will  not  be
        responsible  for  failure  to  perform  Consulting  Services  or  supply
        Deliverables  under  this  Agreement,  if such  failure  is the  result,
        directly or  indirectly,  of the  inability of any products to correctly
        process, provide or receive date data (i.e.,  representations for month,
        day and year), and to properly  exchange date data with the Deliverables
        by HP under this Agreement.


4.   PRICE AND PAYMENT

     a) Prices for  Consulting  Services and  Deliverables  will be specified in
        each Statement of Work.  Prices contracted for in each Statement of Work
        are valid for the  period  stated in the  Statement  of Work.  Except as
        stated in the Statement of Work,  prices include all materials and labor
        expenses,  but do not include sales, use,  service,  value added or like
        taxes, or customs duties. Such taxes and duties,  when applicable,  will
        be added to HP's invoices.

     b) HP will issue invoices in accordance with the payment schedule specified
        in each Statement of Work.  Charges for travel  expenses may be invoiced
        separately.  All HP  personnel  shall comply with HP's policy for travel
        and  reimbursements for employees and contractors as attached in Exhibit
        C.  Customer  will  pay all  invoices  within  30 days  from the date of
        invoice,  except  where HP and  Customer  have  entered into a financing
        agreement,  in which case,  the terms and  conditions  of the  financing
        agreement shall be the  controlling  agreement and control all payments.
        Subject to the terms and conditions of any financing  agreement  between
        HP and  Customer,  HP may change  credit terms prior to each  individual
        Statement  of Work,  upon  reasonable  notice at any time when,  in HP's
        commercially   reasonable  opinion,   Customer's   financial  condition,
        previous payment record,  or the nature of Customer's  relationship with
        HP so warrants.

     c) Should  any  undisputed  invoiced  amount due to HP, in an amount of not
        less than $2,500,  remain unpaid after 60 days from the date of invoice,
        subject to the terms and conditions of any financing  agreement  between
        HP and Customer,  HP may terminate  this  Agreement  pursuant to Section
        13.b.2.


5.   CHANGE ORDERS

     a) "Change  Order"  means an  agreed  upon  change or  modification  to the
        Deliverables,   Consulting  Services  or  other  material  aspect  of  a
        Statement  of Work that  complies  with the  requirements  of Exhibit B.
        Requests by Customer  and  recommendations  by HP for Change  Orders are
        subject  to the  procedures  set forth in Exhibit B, and will be made in
        writing in the form attached to Exhibit B as Attachment B-1.

     b) The Change  Orders must be mutually  agreed by the parties in accordance
        with the procedures set forth in Exhibit B. Pending such  agreement,  HP
        will  continue to perform,  and be paid as if such Change  Order had not
        been requested or recommended,  unless the Customer requests HP to cease
        performance pending the acceptance of the Change Order, provided that if
        either  party  proposes  a Change  Order  which,  in the  other  party's
        judgment,  represents a material  change in the  Consulting  Services or
        Deliverables and such Change Order remains outstanding for 30 days or is
        rejected  by  Customer,  either  HP or  Customer  will have the right to
        terminate  the  affected  Statement of Work  pursuant to Section  13.b.2
        below.


6.   ACCEPTANCE

     a) HP will provide notice to Customer when the  Deliverables  are ready for
        acceptance  testing.  Acceptance  of  Deliverables  will  occur upon the
        earlier of: i) the date of the  successful  completion of the acceptance
        tests, in which the Deliverables conform in all material respects to the
        acceptance  criteria  specified in the applicable  Statement of Work; or
        ii) the date that Customer uses any substantial part of the Deliverables
        for any  purpose  other than  performing  acceptance  tests.  Consulting
        Services which do not include  acceptance  requirements will be accepted
        by Customer upon HP's performance of such Consulting Services.
<PAGE>
     b) In the event  that any  Deliverable  fails to  conform  in all  material
        respects  to  the  acceptance   criteria  specified  in  the  applicable
        Statement of Work, HP will have a reasonable time, subject to the timing
        requirements and schedules included as part of the Statement of Work for
        a Project,  to remedy such  non-conformance,  following  HP's receipt of
        written notice from Customer  specifying in reasonable detail the nature
        of such  non-conformance.  In the event  that HP is unable to remedy the
        non-conformance  within the applicable schedule:  i) Customer may accept
        the  Deliverable  without  warranty,  on an "AS IS" basis,  subject to a
        reasonable price adjustment;  or ii) Customer may return the Deliverable
        to HP and receive a refund of amounts paid to HP for the Deliverable.

     c) Acceptance  will not be delayed for any minor  non-conformance  with the
        requirements  specified in any Statement of Work. Following  acceptance,
        HP will use reasonable  commercial efforts to correct in a timely manner
        any minor non-conformance that appears during acceptance testing.

     d) If  acceptance  testing is delayed  solely for reasons  attributable  to
        Customer,  acceptance  will be deemed to occur thirty (30) calendar days
        after written notice by HP that the  Deliverable is ready for acceptance
        testing.


7.   WARRANTIES

     a) HP  will  perform  Consulting  Services  in  accordance  with  generally
        recognized  commercial practices and standards.  HP will re-perform,  at
        its own cost, any Consulting  Services not performed in accordance  with
        the foregoing  warranty,  provided that HP receives notice from Customer
        within  30 days  after  such  Consulting  Services  were  performed  and
        accepted pursuant to Section 6 above.

     b) HP warrants that the Deliverables  will in all material respects conform
        to the acceptance criteria specified in the applicable Statement of Work
        for a period of six (6) months from the date of acceptance.

     c) HP  does  not  warrant  that  the  operation  of  Deliverables  will  be
        uninterrupted or error free or conform to any reliability or performance
        standards beyond those specified in the applicable  acceptance  criteria
        in the  Statement of Work.  HP also does not warrant  that  Deliverables
        will be  compatible  with future HP products or those of other  vendors,
        except as specifically stated or provided for in the Statement of Work.

     d) If HP receives  notice  during the  warranty  period of any  substantial
        non-conformance   with  the   acceptance   criteria   that  impairs  the
        functioning of a Deliverable, HP will correct such non-conformance or if
        Customer agrees in writing,  to provide a work-around which remedies the
        non-conformance.

     e) If HP is unable within a reasonable  time, in light of the  requirements
        and  schedules  included as part of the Statement of Work for a Project,
        to comply  with the  foregoing  obligations,  HP will  refund  the price
        stated in the  Statement of Work of the part rendered  unserviceable  by
        the defect not cured, upon prompt return of the affected  Deliverable to
        HP, and/or  delivery to HP of proof of the  destruction  of the affected
        Deliverable.

     f) The  warranties  provided in this Section 7 will not apply to defects or
        non-conformances  to the extent  the  defects  or  non-conformances  are
        caused by one of the following events:

        1.  Unauthorized,  improper  or inadequate maintenance or calibration by
            Customer or any third party.

        2.  Software, hardware, interfacing, or supplies not supplied by HP.

        3.  Unauthorized modification of Deliverables or any portion thereof.

        4.  Improper use or operation of Deliverables  or any portion thereof or
            Customer's  failure  to  comply  with  the  applicable environmental
            specification.

        5.  Improper  site  preparation  or  maintenance  by Customer or a third
            party.

     g) THE  ABOVE  WARRANTIES  ARE  EXCLUSIVE  AND NO OTHER  WARRANTY,  WHETHER
        WRITTEN OR ORAL,  IS  EXPRESSED OR  IMPLIED.  HP SPECIFICALLY  DISCLAIMS
        THE  IMPLIED  WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
        PURPOSE.

8.       LICENSES

     a)  Unless  otherwise agreed in writing,  when HP supplies  Customer with a
         Deliverable  that in whole or in part  consists of Software  (sometimes
         referred  to in  Sections 8 and 9 as a  "Software  Deliverable"),  such
         Software  Deliverable  will be supplied in object code form only,  with
         appropriate application program interfaces, when applicable, as defined
<PAGE>
         in a Statement of Work.  If specified in a Statement of Work,  HP shall
         grant Customer a  non-exclusive,  worldwide,  royalty-free,  perpetual,
         fully  paid  license to use source  code to the  extent  necessary  for
         Customer's use of the Deliverable in its ordinary business operations.

     b)  Notwithstanding  the  foregoing,  HP may  include  in the  Deliverables
         certain general  programs,  routines,  or other  intellectual  property
         previously developed by HP. Upon Customer's acceptance of a Deliverable
         and  receipt  by HP of the  associated  payment  in full,  HP shall and
         hereby does grant Customer a  non-exclusive,  worldwide,  royalty-free,
         perpetual,  fully paid license to use such Deliverable,  including HP's
         pre-existing  copyrighted works or other intellectual  property rights,
         to the extent  necessary for Customer's  use of the  Deliverable in its
         ordinary  business  operations.  Customer shall be allowed to assign to
         its  "Affiliates,"  its  successors  in interest and its joint  venture
         partners  the right to use the  Deliverables,  subject  to the  license
         terms herein provided.  For the purposes hereof,  an "Affiliate"  shall
         mean any entity or company  (i) that  Customer  wholly-owns  or has the
         power to control or (ii) that controls Customer; or (iii) that is under
         the same control as Customer.  "Control"  shall mean ownership or power
         to exercise  control of fifty percent  (50%) or more of the  controlled
         entity's voting stock.

     c) Unless  otherwise  authorized  by HP,  Customer  may only make copies of
        Deliverables for archival purposes, or when copying is an essential step
        in the authorized use of a Software  Deliverable on a backup controller,
        processor or other hardware device.

     d) Customer  will label each copy of  Deliverables  made under  Section 8.c
        above with the copyright notice that appears on the original.

     e) Except as provided  herein or in a Statement of Work,  Customer will not
        market,  sublicense or otherwise  provide the original,  any part of the
        original,  any copy or partial copy, or any  derivative of a Deliverable
        to any third party.

     f) Except as provided in the Statement of Work, Customer's license does not
        include  the  right to  updates,  upgrades  or other  enhancements  to a
        Deliverable.

     g) Customer  will not  disassemble  or decompile  any Software  Deliverable
        without  HP's prior  written  consent.  Where  Customer has other rights
        under  statute,  Customer  will  provide  HP  with  reasonably  detailed
        information   regarding  any  intended   disassembly  or  decompilation.
        Customer will not decrypt any Software  Deliverable unless necessary for
        legitimate use of the Deliverable.

     h) HP may terminate  Customer's  license in any Deliverables for failure to
        comply with Section 8 of this  Agreement or, upon prior written  notice,
        for  failure  to pay  for  the  Deliverables.  However,  termination  of
        Customer's  license  for  failure  to  comply  with  Section  8 of  this
        Agreement shall occur only after HP has notified  Customer of Customer's
        failure to comply with Section 8 of this  Agreement  and given  Customer
        seventy-two  (72) hours after such notice to cure Customer's  failure to
        comply. In the event of termination of Customer's license, Customer will
        immediately  destroy or return to HP the  affected  Deliverable  and all
        partial or complete copies,  or provide  satisfactory  evidence of their
        destruction to HP.

     i) If  a  Statement  of  Work  requires  HP  to  incorporate  any  Customer
        intellectual  property  and  therefore  HP  requires  the  use of  same,
        Customer shall grant HP a non-exclusive, worldwide, royalty-free license
        to use and  copy  Customer's  pre-existing  copyrighted  works  or other
        intellectual property rights only to the extent Customer deems necessary
        for HP to perform its  obligations  under this  Agreement and a specific
        Statement of Work. Unless otherwise agreed,  the license shall terminate
        immediately  upon  completion of Consulting  Services as provided in the
        Statement  of  Work,   whereby,  HP  shall  return  all  copies  of  the
        copyrighted works or other intellectual property rights received.

9.   INTELLECTUAL PROPERTY  RIGHTS

     a) All copyrights and other intellectual  property rights existing prior to
        the  Effective  Date will  belong to the party that  owned  such  rights
        immediately prior to the Effective Date.

     b) Neither  party  will  gain by  virtue of this  Agreement  any  rights of
        ownership of copyrights, patents, trade secrets, trademarks or any other
        intellectual  property rights owned by the other, except for the license
        rights referenced in Section 8 above.
<PAGE>
     c) HP will own all copyrights, patents, trade secrets, trademarks and other
        intellectual property rights, title and interest in or pertaining to all
        Works   (including   computer   programs,   Deliverables   and  Software
        Deliverables) developed by HP for purposes of this Agreement.

     d)  Notwithstanding  anything  to  the  contrary  in  this  Agreement,  any
         invention developed through this Agreement which is specificly designed
         by  HP,  but  excluding  HP's  pre-existing  or  separately   developed
         Intellectual  Property, for the Customer's RadioCamera location system,
         its location network,  its use and/or its integration,  shall be and is
         solely owned by Customer.  In no event will HP be precluded  from using
         any non-tangible  ideas,  concepts,  know-how and techniques  developed
         under this Agreement.

10.  INTELLECTUAL PROPERTY INDEMNITY

     a) HP will  defend or settle  any claim  against  Customer,  its  officers,
        directors,  employees,  affiliates,  successors  in  interest  and joint
        venture   partners   regarding  the  Consulting   Services   and/or  the
        Deliverables,   to  the  effect  that  HP,  its   services   and/or  the
        Deliverables  infringed  a patent,  utility  model,  industrial  design,
        copyright,  trade  secret,  mask work or trademark in the country  where
        such Deliverables are used or such Consulting Services are provided.

     b) The  indemnities  provided  in Section  10.a  above will apply  provided
        Customer  agrees to  promptly  notify HP in writing  of the  claim,  and
        Customer  agrees to  cooperate  with HP in and grants HP sole control of
        the defense or settlement, provided however that HP shall not enter into
        any settlement that adversely affects Customer's business operations and
        use of the  Deliverable,  or  obligates  Customer  to take any action or
        incur any expense without  Company's prior written consent,  and further
        provided that Customer shall, at Customer's  expense,  have the right to
        be represented by independent  counsel of its own choosing in connection
        with such claim.

     c) For  infringement  claims  covered  by this  Section  10,  HP  will  pay
        infringement  claim defense costs,  settlement amounts and court-awarded
        damages.  If such a claim regarding a Deliverable appears likely, HP, at
        its own cost, may modify the Deliverable,  procure any necessary license
        or replace it. If the parties determine that none of these  alternatives
        is reasonably  available,  HP will refund Customer's purchase price upon
        return of the  Deliverable if within one year of delivery.  If after the
        one year period, the refund of Customer's purchase price will be reduced
        by 20% per year.

     d) HP  has  no  obligation  for a claim of infringement, to the extent such
        infringement arises from:

        1.  HP's compliance with or use of Customer's  information,  technology,
            designs,    specifications   or   instructions,    including   those
            incorporated into any Statement of Work.

        2.  Modification  of  a  Deliverable  by  Customer  or  a  third   party
            consistent with the purposes for which the Deliverable was provided.

        3.  Use of a Deliverable in a way notindicated in a Statement of Work.

        4.  Use of a Deliverable with products not supplied by HP.

     e) This Section 10 states HP's entire  liability for claims of intellectual
        property infringement.

11.  CONFIDENTIAL INFORMATION

     This  Agreement  incorporates  by reference  the  Non-Disclosure  Agreement
     ("NDA")  between  Customer  and  HP.  If a  conflict  arises  between  this
     Agreement and the NDA, the NDA shall govern all matters of  confidentiality
     and this  Agreement  shall  govern  all other  matters.  Should  the NDA be
     terminated while this Agreement is in effect,  the NDA's  obligations shall
     survive  and shall  continue  to  govern  confidentiality  matters  of this
     Agreement.  HP  acknowledges  that all employees,  and  subcontractors  are
     required to execute an NDA before commencing any work for HP.
<PAGE>
12.  REMEDIES AND LIABILITIES

     a) The  remedies  in  this  Agreement  are  Customer's  sole  and exclusive
        remedies.

     b) To the extent HP is held legally  liable to Customer,  HP's liability is
        limited to:

        1. Payments  described in Sections 6, 7, and 10 above,  this Section 12,
           and Section 13.d below.

        2. Damages for bodily injury.

        3. Direct damages to tangible property up to a limit of U.S. $1,000,000.

        4. Other  direct damages for any claim based on a material breach of any
           other  term of this  Agreement,  up to a maximum of $1,000,000 or the
           amounts paid to HP under this Agreement, whichever is less.

     c) Notwithstanding  Section  12.b  above,  in  no  event  will  HP  or  its
        affiliates,  subcontractors  and  suppliers  be  liable  for  any of the
        following:

        1.  Actual  loss  or  direct  damage  that is not listed in Section 12.b
            above.

        2.  Damages for loss of data, or Software restoration.

        3.  Damages relating to Customer's procurement of substitute products or
            services (i.e., "cost of cover").

        4.  Incidental,  special or consequential  damages,  including  downtime
            costs or lost profits but  excluding  damages for bodily  injury and
            payments described in Section 10.c above.

     d) The Deliverables are not specifically designed, manufactured or intended
        for  sale  as  parts,   components  or  assemblies   for  the  planning,
        construction,  maintenance,  or direct operation of a nuclear  facility.
        Customer will be solely liable if any Deliverables purchased or licensed
        by Customer are used for these applications. Customer will indemnify and
        hold HP  harmless  from  all  loss,  damage,  expense  or  liability  in
        connection with such use.


13.  TERM AND TERMINATION

     a) This  Agreement will commence on the Effective Date and will continue in
        force  until  termination  according  to the  terms  of this  Agreement.
        Individual  Statements of Work will be effective  upon execution by both
        parties and will continue in force until both parties have fulfilled all
        of their Project  obligations,  or until the earlier termination of such
        Statement  of Work  according  to the  terms  of this  Agreement  or the
        Statement of Work.

     b) This  Agreement or an  individual  Statement  of Work may be  terminated
        immediately upon notice in writing:

        1.  By either  party if the other party is in material  breach of any of
            its obligations  hereunder and fails to remedy such breach within 30
            days of  receipt  of a  written  notice  by the  other  party  which
            specifies the material breach.

        2.  By either  party,  in the  absence of mutual  agreement  regarding a
            Change Order which  represents a material  change under Section 5.b,
            or if Customer fails to pay any sums due under this Agreement within
            the 60 day time period specified in Section 4.c.

        3.  By either party if the other party has a receiver  appointed,  or an
            assignee  for the  benefit  of  creditors,  or in the  event  of any
            insolvency or inability to pay debts as they become due by the other
            party, except as may be prohibited by applicable bankruptcy laws.

        c)  Either party may terminate  this Agreement for  convenience  upon 30
            days prior written  notice to the other party.  Any  termination  of
            this  Agreement  will not relieve  either  party of its  obligations
            under any Statement of Work in effect

     on  the  date  of  termination of this Agreement, unless otherwise mutually
agreed to in writing.

     d) Upon termination of any Statement of Work,  Customer will pay HP for all
        Work performed and charges and expenses incurred by HP up to the date of
        termination,  and  Customer  will receive all work in progress for which
        Customer  has  paid.  Should  the sum of such  amounts  be less than any
        advance payment received by HP, HP will refund the difference  within 30
        days of receipt of an invoice from Customer.
<PAGE>
     e) Sections 4, 7, 8, 9, 10 and 12 above, and Section 14 below, will survive
        termination of this Agreement.


14.  GENERAL

     a) Standard  Products.  This  Agreement does not cover standard HP hardware
        and  software   products   sold  or  licensed  to  Customer.   Any  such
        transactions  will be  governed by the terms of  Customer's  HP purchase
        agreement or, in the absence of a signed purchase agreement,  HP's Terms
        and Conditions of Sale and Service (Exhibit E16).

     b) Health and Safety.  HP and any of its  subcontractors  will, when at the
        Customer's  site,  conduct  their  activities  so that their  equipment,
        working  conditions  and methods are safe and without risk to health for
        their own and Customer's employees as well as for any other users of the
        Customer's site.

     c) Non-Restrictive  Relationship.  HP  may  provide  the  same  or  similar
        Consulting Services and Deliverables to other customers.

     d) No  Publicity.  Neither  party will  publicize  or disclose to any third
        party without the consent of the other party,  either the price or other
        terms of this  Agreement  or the fact of its  existence  and  execution,
        except as may be  necessary to comply with other  obligations  stated in
        this Agreement.

     e) No Joint Venture; Employment Issues. Nothing contained in this Agreement
        will be construed as creating a joint  venture,  partnership,  agency or
        employment  relationship  between  the parties  hereto,  nor will either
        party have the right,  power or  authority to create any  obligation  or
        duty,  express  or  implied,  on behalf of the  other.  HP will  provide
        services  under this Agreement  solely as an independent  contractor and
        HP's  employees  will not be considered or deemed  employees of Customer
        for any purpose whatsoever.  HP shall assume full responsibility for its
        employees  and  shall  comply  with  all   applicable   laws   governing
        employment,  including  but not  limited to those  governing  employment
        discrimination   and   immigration,   and  shall  provide  all  required
        insurance, including but not limited to workers' compensation insurance.
        HP shall  indemnify and hold  Customer and its  officers,  directors and
        employees harmless from any and all losses,  claims, costs,  liabilities
        or expenses  arising from HP's  failure to comply with any  provision of
        this paragraph 14(e) as it relates to employment issues.

     f) No Assignment.  Except with respect to HP's rights  regarding the use of
        subcontractors,  and except as provided in this Agreement, neither party
        may  assign  any  rights or  obligations  under  this  Agreement  or any
        Statement of Work without the prior written consent of the other party.

     g) Export Administration  Regulations.  If Customer exports any Deliverable
        outside the country in which the  Deliverable  is delivered to Customer,
        Customer assumes  responsibility  for complying with applicable laws and
        regulations and for obtaining required export and import authorizations.
        Customer will not export or re-export any technical data in violation of
        U.S.  Export  Administration  regulations  or  other  applicable  export
        regulations.  If any Deliverable is required to be exported  outside the
        United States, HP assumes  responsibility  for complying with applicable
        laws and  regulations  and for  obtaining  required  export  and  import
        authorizations.  HP will not export or re-export any  technical  data in
        violation of U.S. Export Administration  regulations or other applicable
        export regulations.

     h) Force Majeure.  Neither  party will be liable for performance  delays or
        for non-performance due to causes beyond its reasonable control.

     i) Notices.  All notices  required under or regarding this Agreement or any
        individual  Statement of Work will be in writing and will be  considered
        given  upon   personal   delivery   of  a  written   notice  to  the  HP
        representative or Customer representative designated in the Statement of
        Work, or within five days of mailing,  postage prepaid and appropriately
        addressed.

     j) Waiver. Neither party's failure to exercise any of its rights under this
        Agreement  will  constitute or be deemed a waiver or forfeiture of those
        rights.

     k) Severability.  If any term or provision of this  Agreement is held to be
        illegal  or  unenforceable,   the  validity  or  enforceability  of  the
        remainder of this Agreement will not be affected.

     l) Exhibits.  The  following   documents  are attached  hereto as exhibits,
        the terms of which are incorporated by reference in their entirety:

        A   Statement of Work (and all subsequently executed Statements of Work)

<PAGE>
        B   Change Order Procedures

        C   Non-Disclosure Agreement

     m) Precedence.  In the event of  conflict  between the  provisions  of this
        Agreement and any attached  exhibit or Statement of Work, the provisions
        of this Agreement will to the extent of such conflict take precedence.

     n) Entire Agreement. This Agreement and its exhibits and Statements of Work
        constitute  the entire  agreement  between HP and Customer and supersede
        any  prior  or   contemporaneous   communications,   representations  or
        agreements between the parties,  whether oral or written,  regarding the
        subject  matter of this  Agreement.  Customer's  additional or different
        terms and  conditions  will not apply.  The terms and conditions of this
        Agreement  may  not be  changed  except  by an  amendment  signed  by an
        authorized representative of each party.

     o) Applicable Law; Venue; Dispute Resolution.  This Agreement is made under
        and will be construed in accordance  with the law of California  without
        giving  effect to that state's  choice of law rules.  All legal  actions
        arising under this Agreement shall be initiated and maintained in Contra
        Costa County,  California;  provided  however,  that such actions may be
        initiated and maintained in either state or federal court.

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<CAPTION>

<S>                                                             <C>
AGREED TO:                                                      AGREED TO:

Customer:    ___________________________________                HP:        ______________________________________



             Authorized Representative Signature                           Authorized Representative Signature

Name:                                                           Name:      Cheryl L. King

Title:                                                          Title:     Contracts Consultant


Address:     ______________________________________             Address:   Hewlett-Packard Company

             ______________________________________                        8000 Foothills Blvd., M/S 5520

             ______________________________________                        Roseville, CA  95747

             ______________________________________                        916-785-6755


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