Exhibit 10.4 PURCHASE ORDER #H80133 UNISYS UNISYS Government System, Inc. 7455-J New Ridge Road Hanover, MD 21076 Division: PAO Buyer: 69 Date of Order: 98-11-13 Type of Order: Change Order Same Ship To Address Terms: Net 30 days Freight: Prepaid FOB: Destination Ship Via: See below This change order #2. Dated 11/13/98 is issued to : 1) Change requested delivery date to 2/28/99 for all items TSI letter as accepted by customer. All other terms and conditions remain unchanged. Item Vendor Part Number Delivery Date Quantity Unit Price 001 TSI-TCGS75 99-02098 Redundant CCSDS Gateway System Value for Line item 001 Contract: NAS5-96010 Rating: DOA7 002 TSI-RCGS75-MTS 99-02028 RCGS75 Monitoring & Test System Value for Line item 002 Contract: NAS5-96010 Rating: DOA7 Total Value of $1,581,204.00 Contract The following special provisions apply to all items on this purchase order: INSPECTION CODES: H Previous PO Value 1581204.00 Value of Change 0.00 Current PO Value 1581204.00 IMPORTANT SELLER NOTE: This order is subject to UNISYS specifications. If any discrepancies exist between UNISYS specifications and vendor specifications UNISYS specifications shall apply. Packing slip must accompany each delivery. SHOW P.O. NUMBER ON ALL PACKAGES AND DOCUMENTS. This is a rated order certified for national defense use, and you are required to follow all the provisions of the defense priorities and allocations system regulation (15 CFR Part 350). Items indicated on this purchase order are intended for ultimate use under government contract. PURCHASE ORDERS UNDER $500.00 REQUIRE NO WRITTEN ACKNOWLEDGEMENT TO UNISYS. Address all inquiries to: Buyer: Robert Fronczak Phone: 410-694-4300 SUBCONTRACT NUMBER: NAS5-96-010-027 BETWEEN UNISYS CORPORATION AND TSI TELSYS INC. UNDER PRIME CONTRACT NO. NAS5-96-010 FOR THE NASA SCIENTIFIC AND ENGINEERING WORKSTATION PROCUREMENT II ("SEWP II") PROGRAM Date: 7/1/1997 TABLE OF CONTENTS PAGE NUMBER Part I Subcontract Article I Scope 1 1.1 Products 1 1.2 Services 1 1.3 Product Family Category 1 1.4 Discount 1 1.5 Warranty 2 1.6 Extended Warranty/Maintenance 2 1.7 Purchase Orders 2 1.8 Discontinued Products 2 1.9 Technology Refreshment 2 Article II Subcontract Term 3 Article III Packaging, Shipment and Delivery 3 Article IV Invoices and Payment 3 4.1 Invoices 3 4.2 Payment 4 Article V Inspection and Acceptance 4 Article VI Federal Acquisition Regulations 4 6.1 Incorporation by Reference of Certain Federal Acquisition Regulation (FAR) Clauses 4 6.2 Subcontracts 4 Article VII Notices 4 Article VIII Order of Precedence 5 Part II: Schedules The below identified Schedules which are applicable to this Subcontract are incorporated herein. Schedule A: Product Discounts and Pricing Schedule B: Software/Firmware Schedule C: Packaging, Shipment and Delivery Attachment 1: Bar Code Labeling Procedures Schedule D: Inspection and Acceptance Schedule E: Warranty Attachment 1: Standard Commercial Warranty Procedures Schedule F: Extended Warranty/Maintenance and Repair Attachment 1: Extended Warranty/Maintenance Pricing and Plans Schedule G: Other Subcontractor Services Schedule H: Insurance Schedule I: Federal Acquisition Regulation Schedule J: Technical Specifications Schedule K: Subcontractor Representations and Certifications Schedule L: Special Requirements Part III: General Provisions - 1- SUBCONTRACT This subcontract, including all Schedules annexed hereto and any other documents incorporated herein by reference ("Subcontract") is made this 1st day of May, 1997, by and between Unisys Corporation, a Delaware corporation, with a place of business at 8008 Westpark Drive, McLean, VA 22102 ("Unisys"), and TSI TelSys Inc., a Maryland corporation, with its principal place of business at 7100 Columbia Gateway Drive, Columbia Maryland 21046 ("Subcontractor"), under Prime Contract No. NAS5-96-010 ("Prime Contract"), which has the program name of SEWP II ("Program"). PART I IN CONSIDERATION of the mutual covenants herein contained, and for other good and valuable consideration, the parties, intending to be legally bound by the provisions herein, agree as follows: ARTICLE I: SCOPE 1.1 PRODUCTS Products are defined as the hardware, software, firmware and documentation listed in Schedule A, including any acceptable new Product and/or acceptable replacement, substitute, enhancement, or add-on to an existing Product. Product(s) provided hereunder shall conform to the commercial item definition provided in FAR Part 2.101. Subcontractor must make available to Unisys any replacement, substitute, enhancement, add-on and/or new product within five (5) business days after its first commercial announcement. 1.2 SERVICES Services are defined as the Warranty and Maintenance of the Product(s) defined above. Services shall comply with the requirements of the Prime Contract and this Subcontract. Subcontractor's Warranty obligations are defined in Schedule E, and Subcontractor's Extended/Maintenance obligations are defined in Schedule F. 1.3 PRODUCT FAMILY CATEGORY Product Family Category is defined as a group of Products. Products will be grouped and/or classified into a Product Family Category or Product Family Categories. Individual Product items will be grouped into a single Product Family Category. Product Family Categories are identified in Schedule A. 1.4 DISCOUNT Discount is defined as a firm-fixed discount from the commercial list price. A Product Family Category will have a single Discount for the term of the Subcontract. Different Product Family Categories may have different discounts. Subcontractor will provide all Product grouped into a particular Product Family Category at the Discount associated with that Product Family Category. If in the course of this Subcontract, a Product's GSA Schedule price, as a percentage off its commercial list price, decreases, Subcontractor's Discount to Unisys shall also increase by the same change in percentage. The new Discount shall be effective on the same date as the new GSA Schedule price or change in GSA Schedule discount. At no time will the Discount be less than the GSA Schedule discount or that discount offered by Subcontractor to its most favored reseller. 1.5 WARRANTY Warranty is defined as the Subcontractor's standard commercial warranty, as modified in Schedule E of this Agreement. Subcontractor shall furnish a Product Warranty, for a period of one (1) year for all hardware Product(s), and, for a period of ninety (90) days for all software Product(s), in accordance with the terms of Schedule E and the Subcontractor's standard commercial warranty, incorporated herein as Schedule E, Attachment 1. Warranty shall be be provided at no additional cost and shall be included in the purchase price of the Product(s). 1.6 EXTENDED WARRANTY/MAINTENANCE Extended Warranty/Maintenance is defined as the terms presented in Schedule F and the Subcontractor's hardware and software maintenance plans, as detailed in Schedule F Attachment 1. As may be required from time to time by Unisys, Subcontractor shall provide Extended Warranty/Maintenance in accordance with the terms and pricing specified and incorporated herein as Schedule F. Unisys is under no obligation to purchase Extended Warranty/Maintenance or repair services from Subcontractor. 1.7 PURCHASE ORDERS This is an INDEFINITE DELIVERY/INDEFINITE QUANTITY type subcontract. During the Term of the Subcontract, Subcontractor agrees to furnish Unisys the Products and Services listed in the Schedules at the Discount(s) specified therein. No Product or Service is ordered for delivery by virtue of being listed in any Schedule hereto. All Products and Services to be purchased/licensed hereunder shall be made pursuant to purchase orders ("Purchase Orders") issued by Unisys to Subcontractor. The terms and conditions of this Subcontract shall control all orders released under the Program, irrespective of whether this Subcontract is referenced by the Purchase Order, and no terms or conditions on any invoice, form or acknowledgment of either party (other than specific delivery instructions consistent with the requirements herein) shall be of any force or effect, unless expressly agreed to in a separate writing by both parties. Purchase Orders and related instructions which are consistent with the terms of this Subcontract shall be accepted by Subcontractor. 1.8 DISCONTINUED PRODUCTS In order for Product to be replaced it must be discontinued by the manufacturer. The definition of "discontinued" also encompasses Product(s) still advertised by the Subcontractor as available but which can only be acquired by special order and therefore, which involves either a significant cost in excess of comparable market items or a prohibitive delay in availability. Subcontractor must provide Unisys with a notice, in writing, sixty (60) days in advance of Product discontinuance or "End-of- Life". 1.9 TECHNOLOGY REFRESHMENT A. Replacement, Substitution, Enhancement, and Add-On Products During the term of this Agreement, Subcontractor may propose replacement, substitution, enhancement or add-on products to any Product which is part of this Subcontract. Any such product must be offered to Unisys under the same Product Family Category, and with the same Discount, Warranty, Maintenance, and other terms and conditions as the Product for which it is being offered as a replacement, substitution, enhancement, or add-on. For each replacement, substitute, enhancement, or add-on product offered, Subcontractor shall provide documentation to support that the functionality and performance characteristics of the replacement, substitute, enhancement, or add-on product are equal to or greater than the functionality and performance characteristics of the Product for which the replacement, substitute, enhancement, or add-on product is offered. Those products which are acceptable to Unisys and the Government will be added to this Agreement through a unilateral subcontract modification. Unisys will have the final determination on any such product changes and such decisions shall not be subject to the Disputes provision of this Subcontract. Unisys acceptance is conditional on Government approval. B. New Products During the term of this Agreement, upon commercial announcement of new products that can be technically added to Products provided hereunder, Subcontractor shall offer all said products for addition to the Subcontract. Any such product must be offered to Unisys at the terms and conditions established in this Agreement. New Product will be assigned to a particular Product Family Category, and accorded the Discount and terms and conditions specified for that particular Category. Those products which are acceptable to Unisys and the Government will be added to this Agreement through a unilateral subcontract modification. Unisys will have the final determination on any such product changes, and such decisions shall not be subject to the Disputes provision of this Subcontract. Unisys acceptance is conditional on Government approval. ARTICLE II: SUBCONTRACT TERM The Term of this Subcontract shall commence on the effective date of the Prime Contract and terminate on November 12, 2000, unless sooner terminated in accordance with any provision of this Subcontract. The Prime Contract is a four year contract featuring a base year and three (3) one-year options. ARTICLE III: PACKAGING, SHIPMENT AND DELIVERY Products and Services specified in the Schedules shall be delivered/ provided by Subcontractor within the timeframe, and at the locations, specified on the Purchase Order, and in accordance with the requirements in Schedule C, PACKAGING, SHIPMENT AND DELIVERY. ARTICLE IV: INVOICES AND PAYMENT 4.1 INVOICES Subcontractor shall submit invoices for payment for the Products and Services accepted under this Subcontract by Unisys and/or the Government. Invoices for Products may be submitted after the date of delivery of such Products to the Government site. Invoices for Services shall be submitted on an annual basis in advance of the year for which such Services were rendered. All invoices shall provide the following information: (i) name and address of Subcontractor; (ii) invoice date; (iii) Prime Contract number, Subcontract number, Purchase Order number; (iv) Subcontract line item number(s), description, serial numbers, quantity and unit and extended price(s) of Products delivered or Services performed; (v) date(s) that Products were delivered or services rendered; (vi) shipping date(s) and bill of lading number(s); (vii) payment terms including any prompt payment discounts; (viii) name and address of Subcontractor official to whom payment is to be sent; (ix) name, title, phone number and mailing address of person to be notified in event of a defective invoice; (x) credits (if applicable); and (xi) any other information or documentation required by the Prime Contract or reasonably requested by Unisys. 4.2 PAYMENT A. PRODUCTS AND SERVICES. Unisys shall pay Subcontractor for Products and Services net thirty (30) days after Government acceptance of the Product/Services, or upon receipt of a proper invoice from Subcontractor, whichever is later. ARTICLE V: INSPECTION AND ACCEPTANCE The Products and Services ordered hereunder shall not be accepted and no charges shall be paid unless and until the Products meet the standard of performance set forth in the Prime Contract and Schedule D, INSPECTION AND ACCEPTANCE, and are accepted by the Government. Products and Services will be accepted by Unisys on the date such Products and Services are accepted by the Government. Any Products or Services not accepted by the Government shall be rejected by Unisys. ARTICLE VI: FEDERAL ACQUISITION REGULATION 6.1 INCORPORATION BY REFERENCE OF CERTAIN FEDERAL ACQUISITION REGULATION (FAR) CLAUSES AND SUPPLEMENTS. The FAR and Government supplemental clauses set forth by citation in Schedule I hereto are incorporated by reference in this Subcontract with the same force and effect as though herein set forth in full text. 6.2 SUBCONTRACTS To the extent Unisys authorizes Subcontractor to provide any of the Products or Services by subcontracting with another person or entity, Subcontractor shall incorporate all required FAR and Government supplemental clauses which are incorporated herein by reference in any such subcontract. Subcontractor further covenants that it will impose this incorporation by reference obligation on all of its subcontractors. ARTICLE VII: NOTICES All notices contemplated herein shall be sent in writing to the other party by certified mail, return receipt requested, or by wire communications (E.G., telex, telefax, twx, etc.) to the following addresses, or to such other address as the party may, by written notice, designate to the other from time to time. UNISYS: COPY TO: Unisys Corporation Unisys Corporation 7455-J New Ridge Road 7455-J New Ridge Road Hanover, Maryland 21076 Hanover, Maryland 21076 Telephone: 410-684-2010 Telephone: 410-684-2010 Telefax: 410-684-2681 Telefax: 410-684-2681 Attn.: Robert Fronczak Attn.: Rebecca Prettyman Subcontract Manager Manager - Product Management SUBCONTRACTOR: COPY TO: TSI TelSys Incorporated TSI TelSys Incorporated 7100 Columbia Gateway Drive 7100 Columbia Gateway Drive Columbia, Maryland 21046 Columbia, Maryland 21046 Telephone: 410-872-3900 Telephone: 410-872-3900 Telefax: 410-872-3902 Telefax: 410-872-3902 Attn.: Edward O'Malley Attn: Clark Austin Director, Contracts Vice President, Sales ARTICLE VIII: ORDER OF PRECEDENCE Conflicting provisions of this Subcontract, if any, shall prevail in the following descending order of precedence: (i) Part II Schedules, except Schedule I; (ii) Part I; (iii) Part III; (iv) Specifications attached or incorporated by reference; (v) Schedule I of Part II. IN WITNESS WHEREOF, the parties have set their hands and seals to this Subcontract as of the date first above written. UNISYS CORPORATION TSI TELSYS INCORPORATED BY: _________________________ BY: __________________________ NAME: ROBERT FRONCZAK NAME JAMES R. CHESNEY TITLE: SUBCONTRACTS MANAGER TITLE: PRESIDENT DATE: _______________________ DATE: ________________________ A-1 PART II: SCHEDULES SCHEDULE A: PRODUCT PRODUCT DISCOUNTS AND PRICING Commercial GSA Product Family Unisys MODEL NUMBER DESCRIPTION LIST PRICE PRICE CATEGORY DISCOUNT ____________ ___________ __________ _____ ______________ ________ [Confidential portions omitted and filed with the Commission] [Headers Cont'd.] Hardware Software Software Extended Warranty 24 Hr. Warranty Warranty Upgrade Annual Cost Board Swap PERIOD PERIOD SERVICE(ANNUAL) SILVER GOLD PLATINUM [Confidential portions omitted and filed with the Commission] PROPRIETARY INFORMATION B- 1 SCHEDULE B: SOFTWARE/FIRMWARE (1) All Software Products shall comply with the Products published specifications, unless specifically stated below. (2) All Software Products provided hereunder shall be non- developmental, commercially available software. (3) LICENSE Subcontractor hereby grants to Unisys, a perpetual, irrevocable, world- wide, non-exclusive right to sublicense to the Software Products and the right to sublicense any later provided updates, improvements, additions, enhancements and modifications to the Software Products on the terms and conditions stated in this Subcontract. Software may be moved from one system/server to another with no restrictions other than its complete removal upon transfer. (4) NON-SUBCONTRACTOR-OWNED SOFTWARE. Subcontractor warrants that all Subcontractor-provided Software which it does not own has been procured by Subcontractor under a valid license from such person, corporation or entity as does own such Software and that Subcontractor is not currently in default under any such license, and that no additional licenses must be procured by Unisys or the Government from any third party or additional fees paid to any third party in order to use such Software or transfer such Software to the Government, except as are specifically set forth in Schedule A. C- 1 SCHEDULE C: PACKAGING, SHIPPING AND DELIVERY (1) DELIVERY SITE. The designated shipping address will be as specified on an individual Purchase Order basis. It is anticipated that all Product deliveries, excluding software updates and upgrades, will be to the end- user and address noted on the Purchase Order. Unisys receiving inspection will be accomplished at Subcontractor's facility, unless otherwise indicated. Products shall be delivered FOB Destination, inside delivery. (2) DELIVERY SCHEDULE. Unless otherwise specified below, the Subcontractor shall make its best efforts to deliver all Products within sixty (60) days of issuance of the Purchase Order. Customer requests for modifications to the commercial products will require an additional delivery term as mutually agreed upon between the parties. Services shall be delivered as stated in the Purchase Order requesting the applicable services. (3) PARTIAL SHIPMENTS A partial shipment is any order that does not include all items specified for delivery. Partial shipments will not be accepted unless authorized on the Purchase Order, or by the Buyer's Purchasing Manager prior to the time of delivery. Buyer reserves the right to return partial shipments to the Subcontractor, transportation charges collect. (4) PACKAGING AND MARKING Products shall be packaged, marked or otherwise prepared for delivery in accordance with best commercial practices. Material shall be packed for shipment to insure acceptance by common carrier and safe delivery at destination. Containers and closures shall comply with the Interstate Commerce Commission regulations, Uniform Freight Classification Rules, or regulations of other carriers as applicable to the mode of transportation. Markings shall indicate "NOT FOR OUTSIDE STORAGE." Packaging and packing shall provide protection during shipping and storage, and shall protect against shock and vibration encountered during shipping and handling. Subcontractor will provide a packing list with each delivery. At a minimum, the packing list will reference Unisys Purchase Order number, product description, product quantity, product part number and product serial number. (5) CARRIER Unisys reserves the right to direct the use of specific carriers or premium modes of transportation and arrange for direct billing of freight charges. In any such case Unisys shall be responsible for incremental freight charges in excess of general commodity carrier charges. However, if such Unisys direction is necessitated by Subcontractor's failure to perform in accordance with established schedules as addressed on purchase Orders, Subcontractor shall bear any resulting increase in transportation and packaging costs. D- 1 SCHEDULE D: INSPECTION AND ACCEPTANCE (1) FACTORY INSPECTION AND TEST All Products supplied to Unisys shall be subject to inspection and test by Subcontractor prior to delivery to ensure compliance with commercial practice and operation to stated specifications. (2) IDENTIFICATION/MARKING REQUIREMENTS All products (hardware, software and documentation) shall be clearly marked with part numbers. The markings of the top assembly level shall be visible without having to remove or disassemble any part of the assembly. The UL and FCC approval labels shall be clearly visible. The markings shall clearly reflect the current engineering level, including optional parts of the products. (3) MAINTENANCE, SERVICE AND PARTS Maintenance service and parts shall be furnished by Subcontractor at no additional charge during the test period unless such service and parts are required due to fault or negligence of Unisys. (4) SUBCONTRACTOR ASSISTANCE Unisys shall give Subcontractor notice of any problems with acceptance testing which involves Subcontractor's Products. Subcontractor shall provide reasonable assistance to Unisys, at no additional cost, to solve such acceptance testing problems caused by Subcontractor's products. (5) FINAL INSPECTION AND ACCEPTANCE All products shall be subject to inspection and acceptance upon receipt at customer site. In case any Products, or lot of Products, is defective in material or workmanship, or otherwise not in conformance with the requirements of Product's stated specifications, Unisys shall have the right either to reject it or require its correction. Any products which have been rejected or required to be corrected may be returned to and shall be replaced or corrected by and at the expense of the subcontractor, including transportation charges. If, after being requested by Unisys, the Subcontractor fails to promptly replace or correct any defective commodities within five (5) calendar days after receipt of the returned materials, Unisys may (I) by contract or otherwise, replace or correct such commodities and charge to Subcontractor all costs incurred by Unisys thereby, or (II) require a reduction in price which is equitable under the circumstances. Upon the completion of acceptance at the customer site, the product warranty period shall begin. E- 1 SCHEDULE E: WARRANTY (1) HARDWARE WARRANTY (A) BASIC HARDWARE WARRANTY The purchase of hardware includes a basic hardware warranty, which provides, at a minimum, the same basic warranty features the Subcontractor offers in connection with the sale of hardware either (a) on the commercial market, or (b) to the Seller's most favored purchasers. (1) Responsibilities of the Seller The Subcontractor shall provide warranty service, and parts. Warranty service does not include electrical work external to the equipment, the furnishing of supplies, and adding or removing accessories, attachments, or other devices. It does not include the repair of damage resulting from an accident, transportation between Government sites, neglect, misuse, failure of electrical power, air conditioning, humidity control, or causes other than ordinary use. Subcontractor sponsored alterations or attachments to the equipment shall be made only with the consent of the Government. (2) Level of Parts Replacement The level of replacement of worn or defective parts shall be consistent with the original manufacturer's design of the equipment. The Subcontractor has the responsibility for the repair or the replacement of all faulty hardware within the equipment. (3) Quality of Parts Only new standard parts, or parts equivalent to new parts in performance, shall be used in effecting warranty repairs. Parts which have been replaced shall become the property of the Subcontractor. (4) Field Engineering Changes The Subcontractor shall install all required field engineering changes within 30 days/best efforts (based on reasonable access to the place of performance) after the availability of the change. Concurrence of the Government shall be required prior to the installation of the field engineering changes and they shall be installed at no additional cost to the Government. These field engineering changes shall only take place during the warranty or maintenance period, unless the change affects the safety or reliability of the unit, as determined by Subcontractor. (B) NETWORK CLASS HARDWARE ADVANCE EXCHANGE Subcontractor shall make available to Unisys an advance exchange program under which Unisys/the end-user can contact the Subcontractor and request the next-day delivery of replacement hardware. The Subcontractor shall ship via the Overnight Express company of its choice. Product will be delivered to the Unisys/end-user site designated at the time of the request. Products will be delivered to the designated site FOB Destination, inside delivery. Unisys/end- user will take ownership of the replacement Product upon delivery at the designated site. Product will be returned to the vendor FOB Destination. Hardware Advance Exchange will be covered on a unit price monthly fee basis. All pricing offered will be firm through the full term of the SEWP II contract. Pricing for this advance exchange program is contained in Schedule A. (2) BASIC SOFTWARE WARRANTY The purchase of software/firmware includes a basic ninety (90) day software warranty, which provides, at a minimum, that the software/firmware delivery medium is free from defects. Other software/firmware functions, as listed below shall also be included in the basic ninety (90) day software warranty: (a) Software/Firmware Patches Software/firmware patches are modifications to the software/firmware which provide bug and security fixes. Software/Firmware patches shall be provided to all end-users at no additional cost beyond the initial cost of the software/firmware. This condition shall be in effect for the life of the contract. Software/firmware patches shall be provided to all end-users through the Subcontractors most efficient means at the time of the request, preferably through on- line access/the World Wide Web (WWW). (b) Technical Support Technical software support shall be available from the Subcontractor throughout the selected warranty period. Subcontractor shall provide a toll-free voice telephone hot-line. The voice hot- line will be manned 9 a.m. to 5 p.m. (Eastern Standard Time), Monday through Friday (excluding Government holidays). All other software/firmware warranty functions shall be provided in accordance with the Subcontractor's standard commercial warranty practices, presented in Attachment 1 to this Schedule E. (3) RETURN OF DEFECTIVE PRODUCT All defective Product shall be returned by Unisys to the vendor FOB Destination. Subcontractor shall return repaired/replaced product to the designated site FOB Destination, inside delivery. E- 2 SCHEDULE E ATTACHMENT 1 STANDARD COMMERCIAL WARRANTY PROCEDURES TSI TELSYS INC.'S LIMITED HARDWARE WARRANTY V6 3/17/97 TSI TelSys Inc.'s ("TELSYS") Warranty obligations are limited to the terms set forth below: 1. LIMITED WARRANTY. TELSYS warrants this hardware product against defects in materials and workmanship, under normal use and service, for a period of one (1) year from the date of receipt by the Purchaser. If the Purchaser discovers a defect within the warranty period, TELSYS will, at its discretion, repair the product with either new or refurbished replacement parts at no charge. If TELSYS is unable to restore the product to good working order, TELSYS will, at its option, replace or refund the purchase price of the product. All products that are replaced will become the property of TELSYS. Any replaced or repaired product is warranted for the remainder of the initial warranty period or ninety days, whichever is longer. TELSYS shall not be responsible for any software, firmware, information or memory data of the Purchaser contained in, stored on, or integrated with any products for system components returned to TELSYS pursuant to any warranty. 2. RETURN PROCEDURES. To obtain service under this warranty within the established period, the Purchaser must: Call TELSYS Technical Service Support Operations at 1-888-849-CARE (2273) between 8 a.m. and 5 p.m. EST, Monday through Friday, excluding holidays. To insure that your product qualifies for return to factory warranty service, you will be asked to provide the model and serial number of your product, the date of original purchase, and the Purchaser's name, address, and phone number. Products returned to TELSYS' Technical Service Support Operations must be pre- authorized by TELSYS with a Return Material Authorization (RMA) number marked on the outside of the package, and sent prepaid, insured, and packaged appropriately for safe shipment. The repaired or replaced item will be shipped to the Purchaser at TELSYS' expense, not later than (90) ninety days after receipt by TELSYS. 3. APPLICABILITY. This warranty applies only to hardware products (including internal components) supplied by TELSYS that can be identified by the "TELSYS" trademark, trade name, or logo affixed to them. Any warranty on external third- party hardware (i.e., Sun Workstation) installed by TELSYS with this product is provided by the hardware vendor, not TELSYS. This warranty does not apply to damage caused by accident, abuse, misuse, improper installation or testing, misapplication, or service (including upgrades and expansions) performed by anyone who is not a TELSYS Authorized Service Provider or any other cause beyond the range of the intended use, or by fire, lightning, or other hazard; if the product has been modified without the written permission of TELSYS; if any TELSYS serial number has been removed or defaced; or if you cannot provide proof of original purchase as described above. 4. LIMITATIONS OF REMEDIES AND DAMAGES. IN NO EVENT WILL TELSYS, ITS PARENT OR SUBSIDIARIES OR ANY OF THE LICENSORS, DIRECTORS, OFFICERS, EMPLOYEES OR AFFILIATES OF ANY OF THE FOREGOING BE LIABLE TO THE PURCHASER FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT OR SPECIAL DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS INTERRUPTION, LOSS OF BUSINESS INFORMATION AND THE LIKE,) WHETHER FORESEEABLE OR UNFORESEEABLE, ARISING OUT OF THE USE OF OR INABILITY TO USE THE SOFTWARE OR ACCOMPANYING WRITTEN MATERIAL, REGARDLESS OF THE BASIS OF THE CLAIM AND EVEN IF TELSYS OR A TELSYS REPRESENTATIVE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. TELSYS'S LIABILITY TO THE PURCHASER FOR DIRECT DAMAGES FOR ANY CAUSE WHATSOEVER, AND REGARDLESS OF THE FORM OF THE ACTION, WILL BE LIMITED TO THE ACTUAL PURCHASE PAID FOR THE PRODUCT. Some states do not allow the exclusion or limitation of incidental or consequential damages or exclusion of implied warranties, so the above limitations or exclusions may not apply to the Purchaser. This warranty gives the Purchaser specific legal rights, and the Purchaser may also have other rights that vary from state to state. THE WARRANTY AND REMEDIES SET FORTH ABOVE ARE EXCLUSIVE AND IN LIEU OF ALL OTHERS, WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED. TELSYS SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED WARRANTIES, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. UNLESS MODIFIED IN WRITING AND SIGNED BY THE AUTHORIZED REPRESENTATIVES OF BOTH PARTIES, THIS WARRANTY IS UNDERSTOOD TO BE THE COMPLETE AND EXCLUSIVE WARRANTY BETWEEN THE PARTIES. NO TELSYS SALES REPRESENTATIVE, DEALER, RESELLER, AGENT OR EMPLOYEE IS AUTHORIZED TO MAKE ANY MODIFICATION, EXTENSION, OR ADDITION TO THIS WARRANTY UNLESS OTHERWISE ALLOWED BY THIS AGREEMENT. E- 3 TSI TelSys Inc.'s Software License V6 5/2/97 The enclosed computer program(s)("Software") is licensed, not sold, to you by TSI TelSys, Inc. ("TELSYS") for use only under the terms of this License, and TELSYS reserves any rights not expressly granted to the Licensee. The Licensee owns the disk(s) on which the Software is recorded or fixed, but TELSYS retains ownership of the Software itself. 1. LICENSE. This License allows the Licensee to: (a) Use one copy of the Software on a single computer at a time. To "use" the Software means that the Software is either loaded in the temporary memory (i.e. RAM) of a computer or installed on the permanent memory of a computer (i.e. hard disk, CD ROM, etc.) The Licensee may install the Software on a common storage device which is accessible by multiple computers, provided that if more computers have access to the common storage device than the number of licensed copies of the Software, you must have some Software mechanism which locks-out any concurrent users in excess of the number of licensed copies of the Software (an additional license is not needed for the one copy of Software installed on the common storage device accessed by multiple computers provided the number of licensed copies is not exceeded by the number of concurrent users.). (b) Make one copy of the Software in machine readable form solely for backup purposes. 2. PROPRIETARY MATERIAL AND RESTRICTIONS. "Proprietary Material" shall mean the Programs(s) in any form and the algorithms, technology and know- how embodied therein and all documentation, manuals and other material related thereto. Customer expressly acknowledges that the Proprietary Material is confidential and proprietary property of TELSYS and hereby agrees to receive and maintain it as it would its own confidential and proprietary material. Licensee shall not cause or permit disclosure of any Proprietary Material to any person other than the Licensee's employees and consultants whose responsibilities require access to such material without the prior written consent of TELSYS. The Software contains trade secrets in its human perceivable form and, to protect them, the Licensee may not REVERSE ENGINEER, DECOMPILE, DISASSEMBLE OR OTHERWISE REDUCE THE SOFTWARE TO ANY HUMAN PERCEIVABLE FORM. LICENSEE MAY NOT MODIFY, ADAPT, TRANSLATE, RENT, LEASE, LOAN OR CREATE DERIVATIVE WORKS BASED UPON THE SOFTWARE OR ANY PART THEREOF. 3. TERMINATION. This License is effective until terminated. This License will terminate immediately without notice from TELSYS or judicial resolution if Licensee fails to comply with any provision of this License. Upon such termination you must destroy the Software, all accompanying written materials and all copies thereof, and Sections 2, 5, 6, and 7 will survive any termination. 4. EXPORT LAW ASSURANCES. You agree that neither the Software nor any direct product thereof is being or will be shipped, transferred or reexported, directly or indirectly, into any country prohibited by the United States Export Administration Act and the regulations thereunder or will be used for any purpose prohibited by the Act. 5. LIMITED WARRANTY. TELSYS warrants that the Software programs (which include embedded third party software) licensed from it will perform in substantial conformance to the program specifications therefore for a period of one year from the date of receipt from TELSYS. TELSYS warrants the storage media containing Software against failure during the warranty period. No updates are provided. TELSYS' obligation hereunder shall be to replace any defective media with Software which substantially conforms to TELSYS' applicable published specifications or in the event that replacement is not possible, to refund the purchase price paid by the Licensee for any defective Software products. TELSYS makes no warranty that its Software products will work in combination with any hardware or applications Software products independently purchased by the Customer from third party vendors. THIS LIMITED WARRANTY IS THE ONLY WARRANTY PROVIDED BY TELSYS AND TELSYS EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, EITHER EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE WITH REGARD TO THE SOFTWARE AND ACCOMPANYING WRITTEN MATERIALS. Because some jurisdictions do not allow the exclusion or limitation of implied warranties, the above limitation may not apply to you. 6. LIMITATION OF REMEDIES AND DAMAGES. IN NO EVENT WILL TELSYS, ITS PARENT OR SUBSIDIARIES OR ANY OF THE LICENSORS, DIRECTORS, OFFICERS, EMPLOYEES OR AFFILIATES OF ANY OF THE FOREGOING BE LIABLE TO THE LICENSEE FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT OR SPECIAL DAMAGES WHATSOEVER(INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS INTERRUPTION, LOSS OF BUSINESS INFORMATION AND THE LIKE) WHETHER FORESEEABLE OR UNFORESEEABLE, ARISING OUT OF THE USE OF OR INABILITY TO USE THE SOFTWARE OR ACCOMPANYING WRITTEN MATERIAL, REGARDLESS OF THE BASIS OF THE CLAIM AND EVEN IF TELSYS OR A TELSYS REPRESENTATIVE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. TELSYS'S LIABILITY TO THE LICENSEE FOR DIRECT DAMAGES FOR ANY CAUSE WHATSOEVER, AND REGARDLESS OF THE FORM OF THE ACTION, WILL BE LIMITED TO THE ACTUAL PRICE PAID FOR THE LICENSE TO USE THE SOFTWARE. 7. U.S. GOVERNMENT RESTRICTED RIGHTS. This License will be construed under the laws of the State of Maryland, except for that body of law dealing with conflicts of law. If any provision of this License shall be held by a court of competent jurisdiction to be contrary to law, that provision will be enforced to the maximum extent permissible, and the remaining provision of this License will remain in full force and effect. If the Licensee is a U.S. Government user then the Software is provided with "RESTRICTED RIGHTS" as set forth in subparagraphs (c)(1) and (2) of the Commercial Computer Software-Restricted Rights clause at FAR 52.227-19 or subparagraph (c)(1)(ii) of the Rights in Technical Data and Computer Software clause at DFARS 252.227-7013, as applicable. F- 1 SCHEDULE F: EXTENDED WARRANTY/MAINTENANCE AND REPAIR (1) EXTENDED WARRANTY/MAINTENANCE (a) Option and Orders At any time during the Product Warranty period, Unisys may require Subcontractor to furnish extended warranty/maintenance services, for some or all of the Products purchased by Unisys pursuant to this Subcontract. This option to purchase these services shall be exercised from time to time by Unisys delivering to Subcontractor one or more written Purchase Orders. Each Purchase Order shall specify the following information: (1) the Products to be maintained; (2) the term of the Purchase Order (which may be for a single maintenance call or as long as the remaining term of this subcontract); (3) the prices for the maintenance services specified in the Purchase Order; and (4) such other information as Unisys and Subcontractor shall reasonably agree is necessary or desirable to further define the rights, liabilities, obligations and duties of the parties under each Purchase Order. Unisys may order maintenance Services provided a written Purchase Order is issued by Unisys. (b) Subcontractor shall provide an Extended Hardware Warranty that will consist of the following: (1) The Extended Hardware Warranty, shall provide coverage after the commercial warranty concludes. (2) If Extended Hardware Warranty is purchased for equipment for which the basic hardware warranty has previously expired, the Subcontractor is entitled to perform, at the then current hourly rates (provided in Attachment 1 to this Schedule F), within 15 days from the receipt of an order requesting Extended hardware Warranty, a pre-maintenance inspection in order to certify that, at the time that the Subcontractor commences Extended Hardware Coverage, the equipment meets current equipment specifications. If any equipment is not up to current Subcontractor revision levels by Subcontractor standards, Subcontractor shall submit an estimate, within the 15 day period, which shall detail the price of labor and parts required to bring that equipment up to the required Subcontractor's maintenance level. Unisys may choose to accept the Subcontractor's estimate and have the Subcontractor the upgrade. If Unisys chooses not to have the piece of equipment brought up to Subcontractor maintenance level, then Subcontractor is not obligated to maintain that piece of equipment. (2) EXTENDED WARRANTY/MAINTENANCE PRICING DISCOUNTS The pricing discounts for the maintenance services ordered by Unisys shall be specified in each Purchase Order based upon the level and type of maintenance services required and the applicable prices therefore as set forth in Schedule A. (3) EXTENDED WARRANTY/MAINTENANCE SERVICES OPTIONS Extended warranty/maintenance services for the Equipment shall be provided to keep such Equipment in, or restore such Equipment to, good working order and capable of performing in accordance with the Applicable specifications. Such support and maintenance shall be provided by subcontractor in accordance with the subcontractor's maintenance plans, as listed in Attachment 1 to this Schedule F. (4) RETURN OF DEFECTIVE EQUIPMENT All defective Product shall be returned by Unisys to the vendor FOB Destination. Subcontractor shall return repaired/replaced product to the designated site FOB Destination, inside delivery. (5) SOFTWARE MAINTENANCE AND SUPPORT Software support service shall be available for all software/firmware purchased under this contract. Software support shall be provided directly to the end-user. Subcontractor shall support all software, including modifications or revisions, for the full term of the contract, in accordance with the Subcontractor's standard commercial practices. Software support shall consist of correction revisions through software patches, updates, upgrades, and modifications, and technical support for problem resolution. Unisys shall receive the initial customer call and provide initial technical analysis and problem resolution. If Unisys cannot resolve the situation, then Subcontractor support shall be contacted. (a) Extended Software/Firmware Warranty Subcontractor shall make available an Extended Software/Firmware Warranty. The purchase of Extended Software/Firmware Warranty provides, for a period from the date of purchase, at no additional charge, the end-user with all new releases, updates, upgrades, modifications and patches to the associated hardware. Subcontractor shall deliver all new releases, updates, upgrades, modifications and patches covered by the Extended Software Warranty directly to the end-users entitled to receive them. Other software/firmware warranty functions which are in accordance with the Subcontractor's standard commercial warranty/maintenance practices shall be included as part of the Extended Software/Firmware Warranty. All Software/Firmware Extended Warranty pricing shall be firm for the full term of the SEWP II contract. All Software/Firmware Extended Warranty pricing are contained herein as part of Schedule A. (b) Out-of Warranty Software/Firmware Upgrades Subcontractor shall make available Software/Firmware Upgrade pricing for end-users who elect not to have Software/Firmware covered by an extended warranty plan. Said upgrades shall comply with Subcontractor's standard commercial upgrade terms, as available to the general public. All currently available out- of warranty Software/Firmware Upgrade pricing are contained herein as part of Schedule A. (6) OUTSIDE OF WARRANTY REPAIRS Subcontractor shall accept and fulfill Repair Orders from Unisys on Products and Parts outside their warranty periods, according to the Subcontractor's then current price list for repair parts, labor and travel (if necessary). Subcontractor warrants the Product/Part repaired hereunder against defective material, workmanship and construction for a period of ninety (90) days from the date of shipment to Unisys/Customer. In the event that any repaired Product/Part fails within thirty (30) days after shipment, Sucontractor agrees to consider this repair "Defective Upon Arrival", and shall repair or replace the malfunctioning unit/part, at no charge, as soon as practical. Should the Subcontractor be unable to repair or replace the unit/part, it shall provide a full refund to Unisys, upon request. (7) CONTINUITY OF SERVICES Subcontractor agrees that all the Extended Warranty/Maintenance Services defined in this Schedule F shall remain available to Unisys' throughout the term of this Subcontract and any renewals thereof." (8) WARRANTY AND EXTENDED WARRANTY/MAINTENANCE POINT OF CONTACT All contact concerning Warranty and Extended Warranty/Maintenance issues and questions shall be made between the following individuals, or their designees, during the term of this Agreement. Formal notifications should be sent in writing to the other party by certified mail, return receipt requested, or by wire communications (E.G., telex, telefax, twx, etc.) to the following addresses, or to such other address as the party may, by written notice, designate to the other from time to time. UNISYS: COPY TO: Unisys Corporation Unisys Corporation 7455-J New Ridge Road 8008 Westpark Drive Hanover, Maryland 21076 McLean, Virginia 22102 Telephone: 410-684-2010 Telephone: 703-790-7733 Telefax: 410-684-2681 Telefax: 703-790-7825 Attn.: Dexter Berry Attn.: Gerald Cimarelli Customer Service Manager Major Accounts Manager SUBCONTRACTOR: COPY TO: TSI TelSys Incorporated TSI TelSys Incorporated 7100 Columbia Gateway Drive 7100 Columbia Gateway Drive Columbia, Maryland 21046 Columbia, Maryland 21046 Telephone: 410-872-3900 Telephone: 410-872-3900 Telefax: 410-872-3902 Telefax: 410-872-3902 Attn.: William Rohrs Attn.: Ed O'Malley VP, Manufacturing Director, Contracts F- 2 SCHEDULE F ATTACHMENT 1 EXTENDED WARRANTY/MAINTENANCE PRICING AND PLANS TSI TELSYS, INC. ("TSI TELSYS") EQUIPMENT MAINTENANCE, SOFTWARE MAINTENANCE, AND INSTALLATION PROGRAM TERMS AND CONDITIONS 1. SCOPE a. TSI TELSYS SHALL BE OBLIGATED TO PROVIDE INSTALLATION AND/OR MAINTENANCE FOR ALL EQUIPMENT AS MAY BE REQUESTED BY THE CUSTOMER DURING THE CONTRACT TERM OF THIS AGREEMENT. SERVICES WILL BE PROVIDED IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT. b. THE SYSTEM INSTALLATION, SILVER MAINTENANCE, GOLD MAINTENANCE, AND PLATINUM MAINTENANCE OPTIONS DESCRIBED HEREIN ARE FOR SERVICES RENDERED WITHIN THE CONTINENTAL UNITED STATES (CONUS). ADDITIONAL CHARGES FOR OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS) ARE STATED IN PARAGRAPH 7. c. THE SCOPE OF THIS AGREEMENT APPLIES TO INSTALLATION AND MAINTENANCE SERVICES ONLY. FOR PRODUCT REPAIR SERVICE PROGRAMS AND NON- CONTRACT MAINTENANCE SERVICES, CONTACT TSI TELSYS DIRECTLY. 2. TERM The initial term of this Agreement shall be a period of one (1) year from the effective date of maintenance service (not applicable to installation service). This Agreement will automatically renew for an additional one- year term unless the Customer provides written notice of cancellation thirty (30) days prior to the expiration of this Agreement. TSI may increase the maintenance charges hereunder at the renewal of a term, however the revised charges shall not exceed the then-current published TSI TelSys rates for the same level and type of support. 3. OBLIGATIONS OF TSI TELSYS a. TSI TELSYS WILL COMPLY WITH ALL REGULATIONS AND PROCEDURES IN EFFECT AT THE CUSTOMER SITE WHEN PROVIDING SERVICES UNDER THIS AGREEMENT. b. TSI TELSYS MAY USE NEW OR REFURBISHED REPLACEMENT PARTS WHICH OPERATE LIKE NEW PARTS IN EFFECTING REPAIRS. ALL PARTS WHICH HAVE BEEN REPLACED SHALL BECOME THE PROPERTY OF TSI TELSYS. c. TSI TELSYS WILL PROVIDE THE CUSTOMER WITH A SITE PREPARATION GUIDE AND CHECKLIST, AND WILL SCHEDULE INSTALLATION WITH THE CUSTOMER. 4. OBLIGATIONS OF CUSTOMER a. CUSTOMER PERSONNEL SHALL NOT PERFORM MAINTENANCE OR ATTEMPT REPAIRS TO EQUIPMENT WHILE SUCH EQUIPMENT IS UNDER MAINTENANCE WITH TSI TELSYS UNLESS PRIOR WRITTEN APPROVAL IS PROVIDED BY TSI TELSYS. b. THE CUSTOMER SHALL PERMIT ACCESS TO TSI TELSYS PERSONNEL TO THE EQUIPMENT WHICH REQUIRES MAINTENANCE OR INSTALLATION, SUBJECT TO REASONABLE SECURITY MEASURES. THE CUSTOMER SHALL SHIP THE EQUIPMENT BACK TO TELSYS AS NECESSARY AND IN ACCORDANCE WITH THIS AGREEMENT. c. IF SYSTEMS INSTALLATION SERVICE IS PURCHASED, THE CUSTOMER SHALL PREPARE THE SITE IN ACCORDANCE WITH THE SITE PREPARATION GUIDE PROVIDED BY TSI TELSYS AND FAX A COMPLETED SITE PREPARATION CHECKLIST TO THE TSI TELSYS SERVICE OPERATIONS CENTER PRIOR TO THE SCHEDULED INSTALLATION DATE, AND PROVIDE A SITE CONTACT FOR THE TSI TELSYS FIELD ENGINEER. d. THE CUSTOMER SHALL: (I) INSURE THAT THE EQUIPMENT IS INSTALLED IN A LOCATION WHICH MEETS THE ENVIRONMENTAL CONDITIONS CALLED FOR BY TSI TELSYS' PRODUCT SPECIFICATIONS; (II) MAINTAIN CURRENT BACKUPS OF TSI TELSYS SOFTWARE; (III) INSTALL ALL TSI TELSYS' SOFTWARE UPDATES WITHIN SIX MONTHS OF RECEIPT; AND (IV) LIMIT ACCESS TO ANY TSI TELSYS TECHNICAL INFORMATION TO CUSTOMER EMPLOYEES AND AGENTS WITH A SPECIFIC NEED RELATED TO USE OF THE SOFTWARE AND OTHER RELATED DOCUMENTATION PROVIDED BY TSI TELSYS. 5. AVAILABLE INSTALLATION AND REMEDIAL MAINTENANCE A. STANDARD SYSTEM INSTALLATION (SSI) SERVICE - PROVIDES FOR CONUS ON-SITE INSTALLATION OF A TSI TELSYS PRODUCT, MONDAY THROUGH FRIDAY, FROM 8 A.M. TO 5 P.M. EASTERN STANDARD TIME (EST). FEATURES OF SSI SERVICE ARE: (1) HARDWARE-UNPACK AND SET-UP IN RACK, SHELF, OR TABLE; (2) SOFTWARE-UNPACK MEDIA AND DOCUMENTATION, LOAD SOFTWARE, AND CONFIGURE AND INITIALIZE SOFTWARE TO COMPLY WITH PUBLISHED OPERATING STANDARDS AND MANUALS. THE CUSTOMER MUST ORDER THE STANDARD SYSTEM INSTALLATION SERVICE WHEN PURCHASING TSI TELSYS EQUIPMENT UNLESS A WRITTEN WAIVER IS REQUESTED BY THE CUSTOMER AND APPROVED BY TSI TELSYS. 6. MAINTENANCE a. Silver Maintenance (SM) Service - Provides for remedial maintenance and enhanced technical support for TSI TelSys products, Monday through Friday, from 8 a.m. to 5 p.m. (EST). Features of Silver Maintenance service are: (1) RETURN TO FACTORY REPAIR OF NON-FUNCTIONING EQUIPMENT - TSI TELSYS WILL SHIP THE REPAIRED EQUIPMENT BACK TO THE CUSTOMER WITHIN TEN (10) BUSINESS DAYS OF RECEIPT AT THE TSOC; (2) LABOR AND MATERIALS FOR THE REPAIR OF THE TELSYS PRODUCT AT THE TSOC; (3) TOLL-FREE NUMBER ACCESS NUMBER TO THE TSOC; (4) SYSTEM SOFTWARE BUG FIXES (PATCHES); (5) MODULE EXCHANGE (SUBJECT TO AVAILABILITY); (6) NOTIFICATION OF RELEASED ENGINEERING CHANGES. B. GOLD MAINTENANCE (GM) SERVICE - COMPRISES SILVER MAINTENANCE SERVICE PLUS THESE ADDITIONAL FEATURES FEATURES OF GOLD MAINTENANCE SERVICE ARE: (1) THE FEATURES OF SILVER MAINTENANCE PLUS; (2) REMOTE DIAGNOSTICS PERFORMED BY THE TSOC (SCHEDULED); (3) SYSTEM SOFTWARE UPDATES (E.G., A MINOR REVISION FROM VERSION 3.0 TO 3.1); (4) 24 HOUR MODULE EXCHANGE (SUBJECT TO AVAILABILITY); (5) HARDWARE UPDATES (6) PREPAID SHIPPING (CARRIER) CHARGES WITH A VALID RMA NUMBER FROM THE TSOC . C. FEATURES OF PLATINUM SERVICE ARE: (1) GOLD MAINTENANCE SERVICE PLUS THESE ADDITIONAL FEATURES; (2) TELSYS WILL SHIP THE REPAIRED OR A REPLACEMENT PART BACK THE NEXT BUSINESS DAY AFTER RECEIPT AT THE TSOC; (3) SYSTEM SOFTWARE UPGRADES (E.G., A MAJOR REVISION FROM VERSION 3.1 TO 4.0) WHICH INCLUDE NEW FEATURES AND OPTIONS IN ADDITION TO SYSTEM OPERATIONAL ENHANCEMENTS AND BUG FIXES; (4) ON-SITE MAINTENANCE SERVICE AT A CUSTOMER CONUS SITE. A QUALIFIED SERVICE TECHNICIAN WILL BE DISPATCHED TO THE CUSTOMER LOCATION WITHIN THE NEXT BUSINESS DAY PLUS REASONABLE PREPARATION AND TRAVEL TIME; (5) ALL TRAVEL CHARGES ASSOCIATED WITH ON-SITE CONUS SUPPORT (6) HARDWARE UPDATES PROVIDED AT REGULAR INTERVALS; (7) INSTALLATION OF PURCHASED TSI OPTIONS. NOTE: TSI TELSYS WILL, AT ITS SOLE DISCRETION, DETERMINE THE NECESSITY AND APPROPRIATENESS OF AN ON-SITE CALL VERSUS AN OFF-SITE REPAIR OF THE EQUIPMENT AT THE TSOC. SHOULD TSI TELSYS DETERMINE THAT AN ON-SITE CALL IS REQUIRED, IT ALONE WILL DECIDE ON THE DURATION AND QUANTITY OF ON-SITE MAINTENANCE CALLS NECESSARY TO REPAIR THE EQUIPMENT A. SOFTWARE SERVICE (SS) PROVIDES FOR REMEDIAL MAINTENANCE SUPPORT AND UPGRADES FOR TSI TELSYS' SOFTWARE PRODUCTS, MONDAY THROUGH FRIDAY, FROM 8 A.M. TO 5 P.M. (EST). FEATURES OF THE SOFTWARE SERVICE ARE: (1) SEMI-ANNUAL SYSTEM SOFTWARE UPGRADES; (2) SYSTEM SOFTWARE ENHANCEMENTS; (3) SYSTEM SOFTWARE BUG FIXES (PATCHES); (4) REMOTE DIAGNOSTICS VIA THE TSOC; (5) TOLL-FREE ACCESS TO THE TSOC. 7. COVERAGE AND ELIGIBILITY- EQUIPMENT MAINTENANCE a. TO BE ELIGIBLE FOR MAINTENANCE COVERAGE UNDER THIS AGREEMENT, THE EQUIPMENT MUST BE DETERMINED BY TSI TELSYS TO BE IN GOOD OPERATING CONDITION. IN ORDER TO DETERMINE THAT THE EQUIPMENT IS IN GOOD OPERATING CONDITION: (1) THE EQUIPMENT MUST PRESENTLY BE UNDER A TSI TELSYS WARRANTY OR MAINTENANCE AGREEMENT; (2) EQUIPMENT OUTSIDE OF A TSI TELSYS WARRANTY OR MAINTENANCE AGREEMENT MUST HAVE BEEN REPAIRED BY TSI TELSYS WITHIN NINETY (90) DAYS OF THE REQUEST FOR A TSI TELSYS DETERMINATION OF CONDITION; (3) IF THE EQUIPMENT IS OUTSIDE A TSI TELSYS WARRANTY OR MAINTENANCE AGREEMENT, IT MUST BE EXAMINED BY TSI TELSYS AND REPAIRED, IF NECESSARY, AT THE CUSTOMER'S EXPENSE PRIOR TO ISSUANCE OF A MAINTENANCE AGREEMENT. a. A WRITTEN MAINTENANCE ORDER SHALL BE THE ONLY BASIS FOR MAINTENANCE IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS MAINTENANCE AGREEMENT. TSI TELSYS WILL CONFIRM A MAINTENANCE ORDER BY PROVIDING THE CUSTOMER WITH A RETURN MATERIAL AUTHORIZATION (RMA) WITHIN TWENTY- FOUR (24) HOURS OF THE CUSTOMER'S REQUEST. ORDER RENEWALS WILL BE AUTOMATICALLY ACCEPTED FOR EQUIPMENT WHICH MAY HAVE BEEN DISCONTINUED FROM USE FOR TEMPORARY PERIODS OF TIME NOT LONGER THAN 120 CALENDAR DAYS. b. ALL WRITTEN CORRESPONDENCE FROM THE CUSTOMER SHALL BE DIRECTED TO THE TSOC. c. MAINTENANCE SERVICE SHALL COMMENCE ON A MUTUALLY AGREED DATE BETWEEN THE CUSTOMER AND THE TSOC, WHICH WILL BE SPECIFIED IN THE MAINTENANCE ORDER. MAINTENANCE ORDERS SHALL NOT BE MADE EFFECTIVE BEFORE THE EXPIRATION OF ANY APPLICABLE MAINTENANCE OR WARRANTY PERIODS. 8. TIME AND MATERIAL RATES FOR ON-SITE SERVICE (EQUIPMENT MAINTENANCE) Should the Customer request On-Site maintenance during the periods below, the following rates and conditions shall apply. a. CONUS Support TIME PERIOD RATE (1) REGULAR HOURS (8 A.M. TO 5 P.M. LOCAL* (2) AFTER HOURS (MONDAY THROUGH FRIDAY* (3) AFTER HOURS (SATURDAY, SUNDAY, HOLIDAYS* [*Confidential portions omitted and filed separately with the Commission] *ONLY APPLICABLE TO CUSTOMER REQUESTS UNDER THE SILVER AND GOLD SERVICE OPTIONS. THERE IS NO ADDITIONAL CHARGE FOR MAINTENANCE SERVICE DURING REGULAR HOURS FOR THE PLATINUM SERVICE OPTION. THERE SHALL BE A FOUR (4) HOUR MINIMUM CHARGE FOR ON-SITE SERVICE. A FULL HOUR SHALL BE CHARGED FOR ANY SIXTY (60) MINUTE PERIOD OR ANY FRACTION THEREOF. THE REGULAR AND AFTER HOUR RATES DO NOT INCLUDE REASONABLE AND ACTUAL TRAVEL EXPENSES WHICH SHALL BE CHARGED TO THE CUSTOMER FOR EACH ON-SITE SERVICE CALL. B. OCONUS SUPPORT SHOULD THE CUSTOMER REQUIRE THAT ON-SITE INSTALLATION AND/OR MAINTENANCE BE PERFORMED OCONUS, ADDITIONAL COSTS SHALL BE CHARGED TO THE CUSTOMER. SUCH CHARGES WILL BE LIMITED TO REASONABLE AND ACTUAL TRAVEL EXPENSES, INCLUDING TRAVEL COSTS, PER DIEM AND LODGING IF OVERNIGHT STAY IS NECESSARY. THESE EXPENSES WILL BE IN ADDITION TO THE HOURLY CHARGES DESCRIBED ABOVE FOR CONUS REGULAR AND AFTER HOURS SUPPORT. SUCH ADDITIONAL CHARGES WILL APPLY TO EACH ON-SITE MAINTENANCE REQUEST, AND IT WILL BE LIMITED TO ONE ROUND TRIP PER SERVICE CALL. 9. EQUIPMENT RETURN a. PRODUCTS RETURNED TO TSI TELSYS FOR MAINTENANCE MUST BE PRE- AUTHORIZED BY TSI TELSYS WITH AN RMA NUMBER MARKED ON THE OUTSIDE OF THE PACKAGE, AND SENT PRE-PAID, INSURED, AND PACKAGED APPROPRIATELY FOR SAFE SHIPMENT. THE CUSTOMER SHALL BE RESPONSIBLE FOR RISK OF LOSS OR DAMAGE TO THE EQUIPMENT UNTIL RECEIVED AND ACCEPTED AT THE TSOC. TSI TELSYS SHALL BE RESPONSIBLE FOR RISK OF LOSS OR DAMAGE UNTIL THE EQUIPMENT HAS BEEN RETURNED TO THE CUSTOMER. b. WHEN TSI TELSYS REMOVES EQUIPMENT FOR OFF-SITE REPAIR, IT SHALL BE RESPONSIBLE FOR ANY LOSS OR DAMAGE TO THE PRODUCT FROM THE TIME OF REMOVAL UNTIL THE TIME OF RETURN OF THE EQUIPMENT TO THE CUSTOMER. 10. EQUIPMENT MOVEMENT Relocation of products to a site other than the site specified initially by Customer may affect the availability of service and will relieve TSI TelSys' obligation to provide On-Site service unless: a) Customer notifies TSI TelSys thirty (30) days prior to such relocation; b) TSI TelSys confirms that the relocation does not affect the availability of service; and c) Customer agrees to pay any adjustment of charges which may result from the relocation. Upon request of the Customer, TSI TelSys will supervise product relocation, including de-installation, crating, uncrating and reinstallation, or perform other associated services at the hourly rates denoted in Paragraph 7 of this Agreement. 11. LIMITATIONS TSI TelSys shall not be obligated under this Agreement to: a. SERVICE ANY PRODUCT THAT HAS BEEN DAMAGED, ABUSED, OVERUSED OR MISUSED AS DEFINED BY TSI TELSYS AND THROUGH NO FAULT OF TSI TELSYS; b. SERVICE ANY PRODUCT THAT HAS RECEIVED UNAUTHORIZED MODIFICATION, REPAIR OR SERVICE THAT IMPAIRS PERFORMANCE OR IMPEDES NORMAL SERVICE; c. PAINT OR REFINISH ANY PRODUCT FOR COSMETIC PURPOSES ONLY; d. REPAIR ANY DAMAGE OR MALFUNCTION CAUSED BY THE USE OF NON- TSI TELSYS EQUIPMENT; e. SERVICE ANY PRODUCT THAT HAS NOT RECEIVED THE REQUIRED USER MAINTENANCE AND CLEANING AT THE FREQUENCY AND AS PRESCRIBED IN THE USER MANUAL. f. PROVIDE OR REPLACE CONSUMABLE ITEMS USED WITH TSI EQUIPMENT (I.E. MAGNETIC MEDIA, LAMPS, ETC.) ANY SERVICE IDENTIFIED IN 10.A-E ABOVE AND PROVIDED BY TSI TELSYS AT THE CUSTOMER'S REQUEST SHALL BE CHARGED TO CUSTOMER AT TSI TELSYS' THEN CURRENT RATES FOR PARTS AND AT THE HOURLY RATES IN PARAGRAPH 7 FOR SERVICE. 12. WARRANTIES a. TSI TelSys warrants new and refurbished "as new" parts for the duration of this maintenance Agreement or ninety (90) days after installation, whichever is later. b. IN CONNECTION WITH THIS AGREEMENT, SERVICES RENDERED HEREUNDER AND PARTS SUPPLIED PURSUANT HERETO, TSI TELSYS MAKES NO WARRANTY, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF FITNESS FOR PARTICULAR PURPOSE OR OF MERCHANTABILITY. TSI TELSYS' SOLE OBLIGATION SHALL BE LIMITED TO TSI TELSYS' REASONABLE EFFORTS AT THE MAINTENANCE, REPAIR, OR REPLACEMENT OF ANY DEFECTIVE PRODUCT. Some states do not allow the exclusion of implied warranties, so the exclusion above may not apply to the Customer. 13. LIMITATION OF LIABILITIES TSI TELSYS AND/OR ITS REPRESENTATIVE'S LIABILITY UNDER OR ARISING OUT OF THIS AGREEMENT, WHETHER FOR BREACH OF CONTRACT, TORT, OR OTHERWISE SHALL BE LIMITED TO A REFUND OF THE PRO RATA ANNUAL MAINTENANCE CHARGES PAID, IF ANY, FOR THE ITEM OF PRODUCT INVOLVED IN THE CLAIM. IN NO EVENT WILL TSI TELSYS OR ITS REPRESENTATIVES BE LIABLE FOR ANY INDIRECT, SPECIAL ORCONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOSSESOF BUSINESSAND/OR PROFITS, WHETHER FORESEEABLE OR NOT, CAUSED BY ITS PRODUCT OR SERVICES RELATED THERETO. Some states do not allow the limitation or exclusion of liability forincidental or consequential damages, so the limitation above may not apply to the Customer. 14. BREACH OF CONTRACT AND REMEDIES Should Customer: (i) default in the payment of any sum of money due beyond the thirtieth (30th) day after the same is due; or (ii) default in the performance of any other of its obligations under this Agreement, which default continues for thirty (30) days after receipt by Customer of notice thereof from TSI TelSys; or (iii) permit any person other than a TSI TelSys authorized service technician to alter or change any TSI TelSys product without TSI TelSys' prior written consent, then in any such event TSI TelSys may at its option proceed with the following: (a) terminate this Agreement; and (b) convert any unpaid and/or future charges for any and all services rendered to Customer under this Agreement to TSI TelSys' then-current rates. The rights afforded TSI TelSys under this Paragraph 13 will not be deemed to be exclusive, but shall be in addition to any rights or remedies provided by law. 15. MISCELLANEOUS a. THIS AGREEMENT CONSTITUTES HE ENTIRE UNDERSTANDING BETWEEN THE CUSTOMER AND TSI TELSYS WITH RESPECT TO THE SUBJECT MATTER OF THE AGREEMENT AND MAY BE AMENDED OR MODIFIED ONLY BY WRITTEN AGREEMENT BETWEEN THE PARTIES. IN THE EVENT THAT THERE IS ANY VARIANCE BETWEEN THE TERMS OF THIS AGREEMENT AND THE CUSTOMER'S PURCHASE ORDER TERMS, THE TERMS AND CONDITIONS OF THIS AGREEMENT SHALL PREVAIL. b. IF ANY TERM OR PROVISION OF THIS AGREEMENT SHALL BE FOUND TO BE ILLEGAL OR UNENFORCEABLE, THEN, NOTWITHSTANDING, THIS AGREEMENT SHALL REMAIN IN FULL FORCE AND EFFECT, AND SUCH TERM OR PROVISION WILL BE STRICKEN, PROVIDED THAT IN SUCH EVENT THE PARTIES AGREE TO NEGOTIATE IN GOOD FAITH SUBSTITUTE ENFORCEABLE PROVISIONS MOST NEARLY REFLECT THE PARTIES ORIGINAL INTENT IN ENTERING INTO THIS AGREEMENT. c. THIS AGREEMENT SHALL BE BINDING ON THE PARTIES HERETO AND THEIR SUCCESSORS AND ASSIGNS, BUT IS NOT ASSIGNABLE BY CUSTOMER IN ANY PART WITHOUT THE PRIOR WRITTEN CONSENT OF TSI TELSYS, AND ANY ATTEMPTED ASSIGNMENT WITHOUT SUCH CONSENT SHALL BE NULL AND VOID. TSI TELSYS RESERVES THE RIGHT TO ASSIGN THE PERFORMANCE OF THIS AGREEMENT TO A QUALIFIED THIRD PARTY. d. THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF MARYLAND. e. NEITHER PARTY SHALL BE RESPONSIBLE TO THE OTHER FOR A DEFAULT, DELAY OR FAILURE TO PERFORM HEREUNDER IF SUCH DEFAULT, DELAY OR FAILURE TO PERFORM (INCLUDING, BUT NOT LIMITED TO, MEETING THE RESPONSE TIME REQUIREMENT OF THIS AGREEMENT) IS DUE TO ONE OR MORE CAUSES BEYOND ITS REASONABLE CONTROL INCLUDING, BUT NOT LIMITED TO, LABOR DISPUTES, CIVIL DISTURBANCES, EPIDEMICS, WAR, EMBARGOES, FIRE, ACTS OF GOD OR DEFAULT OF A COMMON CARRIER OR SUPPLIER. THIS SECTION SHALL NOT APPLY TO THE CUSTOMER'S OBLIGATION TO PAY THE FEE(S) SET FORTH IN THIS AGREEMENT. G- 1 SCHEDULE G: OTHER SUBCONTRACTOR SERVICES 1) TRAINING (a) Upon Unisys request, Subcontractor shall provide training,at the rates listed in Schedule A, to Unisys designated personnel in the theory, operations, installation and maintenance of the Products, including appropriate training manuals having logic diagrams and explaining the theory of operations. Such training shall be of 5 days duration at Unisys selected site for a maximum of 3 personnel, and shall be sufficient to enable those personnel to train other personnel of Unisys or its designee. (b) Upon Unisys request, Subcontractor shall provide training as recited in the preceding paragraph which is reasonably required by Unisys relating to changes in the Products and improvements thereof. H- 1 SCHEDULE H: INSURANCE RESERVED I- 1 SCHEDULE I: FEDERAL ACQUISITION REGULATION This Subcontract incorporates the following Federal Acquisition Regulation clauses and Government supplements thereto by reference, with the same force and effect as if they were given in full text. The obligations of the Contractor to the Government as provided in said clauses shall be deemed to be the obligations of Subcontractor to Unisys. Wherever appropriate to make the incorporated clauses applicable to this Subcontract, references in the incorporated clauses to the "Government" or the "Contracting Officer" shall be deemed to refer to or (where appropriate) to include Unisys, references to "Contractor" shall be deemed to refer to Subcontractor, and references to the "Contract" shall be deemed to refer to this Subcontract. With respect to any clause granting rights of any kind or nature in patents, licenses, copyrights or other proprietary data, Government property, audit rights, or where a right, act or obligation can only be performed by the Government (see Note 1 clauses), or where otherwise specified below, references to the Government shall not be deemed to grant any rights to Unisys other than as may be required to perfect the Government's rights as granted in such clause. NOTE 1: Designates clauses where rights and obligations flow directly to and from the Government. NOTE 2: Designates clauses applicable to subcontracts over $2,500. NOTE 3: Designates clauses applicable to subcontracts over $10,000. NOTE 4: Designates clauses applicable to subcontracts over $25,000. NOTE 5: Designates clauses applicable to subcontracts over $50,000. NOTE 6: Designates clauses applicable to subcontracts over $100,000. NOTE 7: Designates clauses applicable to subcontracts over $500,000. NOTE 8: Designates clauses applicable to subcontracts over $1,000,000. NOTE 9: Designates clauses applicable to subcontracts over $10,000,000. I- 1 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUES OR EXECUTIVE ORDERS - - COMMERCIAL ITEMS 52.212-5 (JAN 1996) MODIFIED (a) The Contractor agrees to comply with the following FAR clauses, which are incorporated in this contract by reference to implement provisions of law or executive order applicable to acquisitions of commercial items; (1) 52.222-3, Convict Labor (E.O. 11755); and (2) 52.233-3, Protest After Award (31 U.S.C 3553 and 40 U.S.C 759). (b) The Contractor agrees to comply with the FAR / FIRMR clauses in this paragraph (b) which the contracting officer has indicated as being incorporated in this contract by reference to implement provisions of law or executive orders applicable to acquisitions of commercial items or components. CLAUSES INCORPORATED BY REFERENCE FAR CLAUSES: CLAUSE NO. TITLE DATE 52.203-06 Restrictions on Subcontractor Sales to the JUL 1985 Government (Note 1) 52.203-10 Price or Fee Adjustment for Illegal or Improper SEP 1990 Activity 52.219-08 Utilization of Small Business Concerns and FEB 1990 Small Disadvantaged Business Concerns (Note 3: first tier only) 52.219-09 Small Business and Small Disadvantaged JAN 1991 Business Subcontracting Plan (Note 7: not applicable to small business.) 52.222-26 Equal Opportunity (Note 3; exclude par. (a)) APR 1984 52.222-35 Affirmative Action for Special Disabled and APR 1984 Vietnam Era Veterans (Note 3) 52.222-36 Affirmative Action for Handicapped Workers APR 1984 (Note 2) 52.222-37 Employment Reports on Special Disabled Veterans JAN 1988 and Veterans of the Vietnam Era (Note 3) 52.225-03 Buy American Act - Supplies JAN 1989 CLAUSE NO. TITLE DATE 52.225-09 Buy American Act - Trade Agreements Act - APR 1991 Balance of Payments Program 52.225-21 Buy American Act - North American Free Trade Agreement APR 1994 Implementation Act - Balance of Payments Program 52.247-64 Preference for Privately Owned U. S. - Flag Commercial APR 1984 Vessels FIRMR CLAUSES: CLAUSE NO. TITLE DATE 201-39.5202-3 Procurement Authority SEP 1991 (C) Comptroller General Examination of Record. The Contractor agrees to comply with the provisions of this paragraph (c) if this contract was awarded using other than sealed bid, is in excess of the simplified acquisition threshold, and does not contain the clause at 52.215-2, Audit and Records- Negotiation. (1) The Comptroller General of the United States, or an authorized representative of the comptroller General, shall have access to and right to examine any of the Contractor's directly pertinent records involving transactions related to this contract. (2) The Contractor shall make available at its offices at all reasonable times the records, materials, and other evidence for examination, audit, or reproduction, until 3 years after final payment under this contract or for any shorter period specified in FAR Subpart 4.7, Contractor Records Retention, of the other clauses of this contract. If this contract is completely or partially terminated, the records relating to the work terminated shall be made available for 3 years after any resulting final termination settlement. Records relating to appeals under the disputes clause or to litigation or the settlement of claims arising under or relating to this contract shall be made available until such appeals, litigation, or claims are finally resolved. (3) As used in this clause, records include books, documents, accounting procedures and practices, and other data, regardless of type and regardless of form. This does not require the Contractor to create or maintain any record that the Contractor does not maintain in the ordinary course of business or pursuant to a provision of law. (End of Provision) (D) CONTRACT TERMS AND CONDITIONS--COMMERCIAL ITEMS 52.212-4 (OCT 1995) A. Inspection/Acceptance. The Contractor shall only tender for acceptance those item that conform to the requirement of this contract. The Government reserves the right to inspect or test any supplies or services that have been tendered for acceptance. The Government may require repair or replacement of nonconforming supplies or reperformance of nonconforming services at no increase in contract price. The Government must exercise its post-acceptance rights (1) within a reasonable time after the defect was discovered or should have been discovered; and (2) before any substantial change occurs in the condition of the item, unless the change is due to the defect in th eitem. B. Assignment. The Contractor or its assignee's right to be paid amounts due as a result of performance of this contract, may be assigned to a bank, trust company, or other financing institution, including any Federal lending agency in accordance with the Assignment of Claims Act (31 U.S.C. 3727). C. Changes. Changes in the terms and conditions of this contract may be made only by written agreement of the parties. D. Disputes. The Prime Contractor's contract is subject to the Contract Disputes Acts of 1978, as amended (41 U.S.C. 601-613). Failure of the parties to this contract to reach agreement on any request for equitable adjustment, claim, appeal or action arising under or relating to this contract shall be considered a dispute. The Subcontractor shall proceed diligently with performance of this contract, pending final resolution of any dispute arising under the contract. E. Definitions. The clause at FAR 52.202-1, Definitions, is incorporated herein by reference. F. Excusable Delays. The Contractor shall be liable for default unless nonperformance is caused by an occurrence beyond the reasonable control of the Contractor and without its fault or negligence such as, acts of God or the public enemy, acts of the Government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, unusually severe weather, and delays of common carriers. The Contractor shall notify the Contracting Officer in writing as soon as it is reasonably possible after the commencement of any excusable delay, setting forth the full particulars in connection therewith, shall remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to the Contracting Officer of the cessation of such occurrence. G. Patent Indemnity. The Contractor shall indemnify the Government and its officers, employees and agents against liability, including costs for actual or alleged direct or contributory infringement of, or inducement to infringe, any United States or foreign patent, trademark or copyright, arising out of the performance of this contract, provided the Contractor is reasonably notified of such claims and proceedings. H. Risk of loss. Unless the contract specifically provides otherwise, risk of loss or damage to the supplies provided under this contract shall remain with the Contractor until, and shall pass to the Government upon: (1) Delivery of the supplies to a carrier, if transportation is f.o.b. origin; or (2) Delivery of the supplies to the Government at the destination specified in the contract, if transportation is f.o.b. destination. a. Taxes. The contract price includes all applicable Federal, State, and local taxes and duties. b. Termination for the Government's convenience. The Government reserves the right to terminate this contract, or any part hereof, for its sole convenience. In the event of such termination, the Contractor shall immediately stop all work hereunder and shall immediately cause any and all of its suppliers and subcontractors to cease work. Subject to the terms of this contract, the Contractor shall be paid a percentage of the contract price reflecting the percentage of the work performed prior to the notice of termination, plus reasonable charge the contractor can demonstrate to the satisfaction of the Government using its standard record keeping system, have resulting from the termination. The contractor shall not be required to comply with the cost accounting standards or contract cost principles for this purpose. This paragraph does not give the Government any right to audit the contractor's records. The Contractor shall not be paid for any work performed or costs incurred which reasonably could have been avoided. c. Termination for cause. The Government may terminate this contract, or any part hereof, for cause in the event of any default by the Contractor, or if the Contractor fails to comply with any contract terms and conditions, or fails to provide the Government, upon request, with adequate assurance of future performance. In the event of termination for cause, the Government shall not be liable to the Contractor for any amount for supplies or services not accepted, and the Contractor shall be liable to the Government for any and all right and remedies provided by law. If it is determined that the Governmentimproperly terminated this contract for default, such termination shall be deemed a termination for convenience. d. Title. Unless specified elsewhere in this contract, title to items furnished under this contract shall pass to the Government upon acceptance, regardless of when or where the Government takes physical possession. e. Warranty. The Contractor warrants and implies that the items delivered hereunder are merchantable and fit for use for the particular purpose described in this contract. f. Limitation of liability. Except as otherwise provided by an express or implied warranty, the Contractor will not be liable to the Government for consequential damages resulting from any defect or deficiencies in accepted items. g. Compliance. The Contractor shall comply with all applicable Federal, State and local laws, executive order, rules and regulations applicable to its performance under this contract. h. Compliance with laws unique to Government contracts. The Contractor agrees to comply with 31 U.S.C. 1352 relating to limitations on the use of appropriated funds to influence certain Federal contracts; 18 U.S.C 431 relating to officials not to benefit; 40 U.S.C 327, et seq., Contract Work Hours and Safety Standards act; 41 U.S.C. 51-58, Anti-Kickback Act of 1986; 41 U.S.C. 251 related to whistle blower protections; and 49 U.S.C. 40118, Fly American. (End of Provision) SCHEDULE J: TECHNICAL SPECIFICATIONS RESERVED SCHEDULE K: SUBCONTRACTOR REPRESENTATIONS AND CERTIFICATIONS SCHEDULE L: SPECIAL REQUIREMENTS (1) PRIORITY RATING The Prime Contract has been given a priority rating of DOA7. Subcontractor agrees to follow the provisions of applicable Government regulations and orders in obtaining and providing Products and Services needed to fulfill this Subcontract. (2) SEWP BOWL HARDWARE SUPPORT At Prime contract award, upon request of the Government, Subcontractor shall supply to Unisys, at no cost, one set (hardware, software, firmware and cables) of the equipment offered by Subcontractor in response to the specifications of the base networking products. Said equipment shall remain at the SEWP BOWL for the duration of the contract, or until replaced by a Technology Refreshment upgrade. If Subcontractor submits to Unisys a Technology Refreshment proposal for a base networking product, Subcontractor will provide said replacement product to Unisys, at no cost, for the SEWP BOWL. Title for all product at the SEWP BOWL will remain with Subcontractor. (3) SEWP BOWL TECHNICAL SUPPORT Subcontractor shall provide to Unisys, in support of the SEWP BOWL, and at no expense, full technical support services including: (a) Hot-line support for all products available for purchase through the SEWP Ordering Guide. Hot-line support authorizations for the SEWP BOWL shall be available prior to contract award. (b) On-line access to bug and security patches. Access via the World Wide Web (WWW) is preferable. (c) Non-disclosure briefings on emerging technologies relevant to SEWP. (d) Hard copy of commercially available technical specifications for all base networking components, with documents for all products available on the SEWP Ordering Guide by request. (4) CUSTOMER SUPPORT SERVICES Subcontractor shall provide to Unisys, at no expense, the following customer support services: 1. Timely dispatch of up-to-date hard and soft copy price lists (both commercial and GSA) 2. Timely hard copy, at no charge, of all available technical specifications for any products available through the SEWP Ordering Guide (per customer's request) 3. Configuration analysis to determine the suitability, correctness and availability of Subcontractor's offerings to potential customer requirements. (5) PROMOTING THE CONTRACT Subcontractor shall assist the Unisys in promoting the SEWP II contract to all Federal Agencies during the life of the contract. Subcontractor agrees that the SEWP II contract shall be the Subcontractor's preferred vehicle for sales to the US Government. The Subcontractor's goals shall be to: (a) Make customers aware of the SEWP procurement vehicle. (b) Make customers aware of the products and services available on SEWP. (c) Assist customers in creating timely and accurate purchase orders. (6) NETWORKING UPGRADE STRATEGY Subcontractor shall, throughout the life of the Prime Contract, provide a viable upgrade approach, particularly when the upgrade requires the exchange of hardware or media. The approach should lend itself well to a migration strategy, as well as a cutover approach. (7) SEWP II EXCLUSIVITY Subcontractor agrees that Unisys will be the exclusive provider for Subcontractor's Products for the SEWP II program. This exclusivity will be inclusive of the twelve SEWP II prime contracts only. (8) YEAR 2000 COMPATIBILITY The products and services acquired under this Subcontract are required to include accurate processing of the date and date-related data (including but not limited to calculating, comparing and sequencing) by all hardware and software products delivered under this contract, individually and in combination, upon installation. This also includes the manipulation of data with dates prior to, through, and beyond January 1, 2000, and shall be transparent to the user. Hardware and software products provided under this contract shall, individually , and in combination, successfully transition into the Year 2000 with the correct system date, without human intervention, including leap year calculations. Such products shall also provide correct results when moving forward or backward in time across the Year 2000 or subsequent years. ATTACHMENT E BIDDER<O~>S REPRESENTATIONS AND CERTIFICATIONS (OVER $100,000) BIDDER CERTIFIES THAT HE WILL SUBMIT A SUPERSEDING BIDDER<O~>S REPRESENTATIONS AND CERTIFICATIONS WHENEVER THERE IS ANY CHANGE IN THE MATTERS COVERED BY THE REPRESENTATIONS AND CERTIFICATIONS. I. INFLUENCE CERTAIN FEDERAL TRANSACTIONS (52.203-11) (a) The definition and prohibitions contained in the clause, at FAR 52.203- 12, Limitation on Payments to Influence Certain Federal Transactions, included in this solicitation, are hereby incorporated by reference in paragraph (b) of this certification. (b) The offeror, by signing its offer, hereby certifies to the best of his or her knowledge and belief that on or after December 23, 1989,- (1) No Federal appropriated funds have been paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, and officer or employee of Congress, or an employee of a Member of Congress on his or her behalf in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan, or cooperative agreement; (2) If any funds other than Federal appropriated funds (including profit or fee received under a covered Federal transaction) have been paid, or will be paid, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress on his or her behalf in connection with this solicitation, the offeror shall complete and submit, with its offer, OMB standard form LLL, Disclosure of Lobbying Activities, to the Contracting Officer; and (3) He or she will include the language of this certification in all subcontract awards at any tier and require that all recipients of subcontract awards in excess of $100,000 shall certify and disclose accordingly. (c) Submission of this certification and disclosure is a prerequisite for making or entering into this contract imposed by section 1352, title 31, United States Code. Any person who makes an expenditure prohibited under this provision, or who fails to file or amend the disclosure form to be filed or amended by this provision, shall be subject to a civil penalty of not less than $10,000, and not more than $100,000, for each such failure. II. CERTIFICATION REGARDING DEBARMENT, SUSPENSION, PROPOSED DEBARMENT, AND OTHER RESPONSIBILITY MATTERS (52.209-5) (a)(1) The Offeror certifies, to the best of its knowledge and belief, that- (i) The Offeror and/or any of its Principals- (A) Are NOT presently debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by any Federal Agency; (B) Have NOT, (within a three-year period preceding this offer, been convicted of or had a civil judgment rendered against them for: commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, state or local) contract or subcontract; violation of Federal or state antitrust statutes relating to the submission of offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; and (C) Are NOT, (presently indicted for, or otherwise criminally or civilly charged by a governmental entity with, commission of any of the offenses enumerated in subdivision (a) (l) (1) (B) of this provision. (ii) The Offeror has (has not, (within a three-year period preceding this offer, had one or more contracts terminated for default by any Federal agency. (2) <O`>Principals,<O'> for the purposes of this certification, means officers; directors; changes; partners; and, persons having primary management or supervisory responsibilities within a business entity (e.g., general manager; plant manager; head of a subsidiary, division, or business segment, and similar positions). This certification concerns a matter within the jurisdiction of an agency of the United States and the making of a false, fictitious, or fraudulent certification may render the maker subject to prosecution under section 1001, title 18, United States Code. (b) The Offeror shall provide immediate written notice if, at any time prior to contract award, the Offeror learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. III. SMALL BUSINESS CONCERN REPRESENTATION (52.219-1) (a) Representation. Representation. The offeror represents and certifies as part of its offer that it is not a small business concern. (b) Definition. Small business concern, as used in this provision, means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria and size standards in this solicitation. IV. SMALL DISADVANTAGED BUSINESS CONCERN REPRESENTATION (52.219-2) (a) Representation. The offeror represents that it is not a small disadvantaged business concern. (b) Definitions. Asian Pacific Americans, as used in this provision, means United States citizens whose origins are in Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, the U.S. Trust Territory of the Pacific Islands (Republic of Palau), the Northern Mariana Islands, Laos, Kampuchea (Cambodia), Taiwan, Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, or the Federated States of Micronesia. Indian tribe, as used in this provision, means any Indian tribe, band, nation, or other organized group or community of Indians, including any Alaska Native Corporation as defined in 13 CFR 124.100 which is recognized as eligible for the special programs and services provided by the U.S. to Indians because of their status as Indians, or which is recognized as such by the State in which such tribe, band, nation, group, or community resides. Native Americans, as used in this provision, means American Indians, Eskimos, Aleuts, and Native Hawaiians. Native Hawaiian Organization, as used in this provision, means any community service organization serving Native Hawaiians in, and chartered as a not-for-profit organization by, the State of Hawaii, which is controlled by Native Hawaiians, and whose business activities will principally benefit such Native Hawaiians. Small business concern, as used in this provision, means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria and size standards in 13 CFR 121. Small disadvantaged business concern, as used in this provision, means a small business concern that (a) is at least 51 percent unconditionally owned by one or more individuals who are both socially and economically disadvantaged, or a publicly owned business having at least 51 percent of its stock unconditionally owned by one or more socially and economically disadvantaged individuals and (b) has its management and daily business controlled by one or more such individuals. This term also means a small business concern that is at least 51 percent unconditionally owned by an economically disadvantaged Indian tribe or Native Hawaiian Organization, or a publicly owned business having at least 51 percent of its stock unconditionally owned by one of these entities which has its management and daily business controlled by members of an economically disadvantaged Indian tribe or Native Hawaiian Organization, and which meets the requirements of 13 CFR part 124. Subcontinental Asian Americans, as used in this provision means United states citizens whose origins are in India, Pakistan, Bangladesh, Sri Lanka, Bhutan, or Nepal. (c) Qualified groups. The offeror shall presume that socially and economically disadvantaged individuals include Black American, Hispanic Americans, Native American, Asian-Pacific Americans, Subcontinent Asian Americans, and other individuals found to be qualified by SBA under 13 CFR 124. The offeror shall presume that socially and economically disadvantaged entities also include Indian tribes and Native Hawaiian Organizations. V. WOMEN-OWNED SMALL BUSINESS REPRESENTATIONS (52.219-3) (a) Representation. The offeror represents that it is not a women- owned small business concern. (b) Definitions. <O`>Small business concern,<O'> as used in this provision, means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria and size standards in 13 CFR 121. <O`>Women-owned,<O'> as used in this provision, means a small business that is at least 51 percent owned by a woman or women who are U.S. citizens and who also control and operate the business. VI. CERTIFICATION OF NONSEGREGATED FACILITIES (52.222-21) (a) <O`>Segregated facilities<O'>, as used in the provision, means any waiting rooms, work areas, rest rooms and wash rooms, restaurants and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees, that are segregated on the basis or race, color, religion, or national origin because of habit, local custom, or otherwise. (b) By the submission of this offer, the offeror certifies that it does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform their services at any location under its control where segregated facilities are maintained. The offeror agrees that a breach of this certification is a violation of the Equal Opportunity clause in the contract. (c) The offeror further agrees that (except where it has obtained identical certifications from proposed subcontractors for specific time periods) it will- (1) Obtain identical certifications from proposed subcontractors before the award of subcontracts under which the subcontractor will be subject to the Equal Opportunity clause: (2) Retain the certifications in the files: and (3) Forward the following notice to the proposed subcontractors except if the proposed subcontractors have submitted identical certifications for specific time periods): NOTICE TO PROSPECTIVE SUBCONTRACTORS OR REQUIREMENT FOR CERTIFICATIONS OF NONSEGREGATED FACILITIES A Certification of Nonsegregated Facilities must be submitted before the award of a subcontract under which the subcontractor will be subject to the Equal Opportunity clause. The certification may be submitted either for each subcontract or for all subcontracts during a period (i.e., quarterly, semiannually, or annually). VII. PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (52.222-22) The offeror represents that- (a) It has participated in a previous contract or subcontract subject either to the Equal Opportunity clause of this solicitation, the clause originally contained in Section 310 of Executive Order No. 10925, or the clause contained in Section 201 Executive Order No. 11114; (b) It has filed all required compliance reports; and (c) Representations indicating submission of required compliance reports, signed by proposed subcontractors, will be obtained before subcontract awards. VIII. AFFIRMATIVE ACTION COMPLIANCE (52.222-25) The offeror represents that (1) it has developed and has on file at each establishment, affirmative action programs required by the rules and regulations of the Secretary of Labor (41 CFR 60-1 and 60-2), (2) It has not previously had contracts subject to the written affirmative action programs requirement of the rules and regulations of the Secretary of Labor. IX. CLEAN AIR AND WATER CERTIFICATION (52.223-1) The offeror certifies that- (a) Any facility to be used in the performance of this proposed contract is not listed on the Environmental Protection Agency (EPA) List of Violating Facilities; (b) The offeror will immediately notify the Contracting Officer, before award, of the receipt of any communication from the Administrator, or a designee, of the EPA, indicating that any facility that the Offeror proposes to use for the performance of the contract is under consideration to be listed on the EPA list of Violating Facilities; and (c) The offeror will include a certification substantially the same as this certification, including this paragraph (c), in every nonexempt subcontract. X. REPRESENTATION OF LIMITED RIGHTS DATA AND RESTRICTED COMPUTER SOFTWARE (52.227-15) REPRESENTATION CONCERNING DATA RIGHTS Offeror has reviewed the requirements for the delivery of data or software and states (offeror check appropriate block)- Data proposed for fulfilling such requirements qualify as limited rights data or restricted computer software and are identified as follows: All Software on Schedule A <O`>Product Pricing Sheet<O'> XI. COST ACCOUNTING STANDARDS NOTICES AND CERTIFIACTION (52.230-1) Note: This notice does not apply to small business or foreign governments. This notice is in three parts, identified by Roman numerals 1 through III. XII. REPRESENTATION OF EXTENT OF TRANSPORTATION OF SUPPLIES BY SEA (252.247-7022) The clause at 252.247-7022, Transportation of Supplies by Sea, will be included in any contract resulting from this solicitation. The Offeror is required to indicate whether transportation by sea is anticipated under the resultant contract by checking the appropriate blank as follows: The Offeror represents that it does not anticipate that supplies, as defined in the clause at 252.247-7023, Transportation of Supplies by Sea, will be transported by sea in the performance of any contract or subcontract resulting from this solicitation. XIII. DISCLOSURE OF OWNERSHIP OR CONTROL GOVERNMENT OF A TERRORIST COUNTRY (252.209-7001) (a) Definitions. As used in this provision- (1) <O`>Government of a terrorist country<O'> includes the state and the government of a terrorist country, as well as any political subdivision agency, or instrumentally thereof. (2) <O`>Terrorist country<O'> means a country determined by the Secretary of State, under section 6(j) (1) (A) of the Export Administration Act of 1979 (50 U.S.C. App. 2405 (j)(I)(A), to be a country the government of which has repeatedly provided support for acts of international terrorism. As of the date of this provision, terrorist countries include: Cuba, Iran, Iraq, Libua, North Korea, Sudan, and Syria. (3) <O`>Significant interest<O'> means- (i) Ownership of or beneficial interest in 5 percent or more of the form<O~>s or subsidiary<O~>s securities. Beneficial interest included holding 5 percent or more of any class of the firm<O~>s securities in <O`>nominee share, <O`> <O`>street names,<O'> or some other method of holding securities that does not disclose the beneficial owner, (ii) Holding a management position in the firm, such as a director or officer. (iii) Ability to control or influence the election, appointment, or tenure of directors or officer in the firm; (iv) Ownership of 10 percent or more of the assets of a firm such as equipment, buildings, real estate, or other tangible assets of the firm; or (v) Holding 50 percent or more of the indebtedness of a firm. (b) Prohibition on award. In accordance with 10 U.S.C. 2327, no contract may be awarded to a firm or a subsidiary of a firm if the government of a terrorist country has a significant interest in the form or subsidiary, unless a waiver is granted by the Secretary of Defense. (c) Disclosure. If the government of a terrorist country has a significant interest in the Offeror or subsidiary of the Offeror, the Offeror shall disclose such interest in an attachment to its offer. If the offeror is a subsidiary, it shall also disclose any significant interest the government of a terrorist country has in any firm that owns or controls the subsidiary. The disclosure shall include- (1) Identification of each government holding a significant interest; and (2) A description of the significant interest hold by each government. XIV. ETHICS AND INTEGRITY CERTIFICATION Offeror certifies that, to his knowledge, no employee on Unisys related work has: 1) Offered or accepted any kickbacks as that term is defined in the Anti- kickback Enforcement Act of 1986; 2) Offered any Unisys employee anything of value including any gift or promotional item; 3) Entered into any collusive bidding arrangement for any requirement Unisys is attempting to buy; 4) Made any <O`>product substitution<O'> or failed to deliver products which meet or exceed the requirements of the Unisys contract; 5) Attempted to cause a Unisys employee to act in such a manner that would cause that employee to violate the Unisys Code of Ethical Conduct. BIDDER<O~>S SIGNATURE TSI TELSYS INC. Edward J. O<O~>Malley, Jr 6/20/97 PART III: GENERAL PROVISIONS DEFINITIONS As used in this Subcontract, the following terms shall have the following meanings: A. ACCEPTANCE DATE. "Acceptance Date" means the date on which the Government notifies Unisys that the Products or Services have been accepted by the Government. B. APPLICABLE SPECIFICATIONS. "Applicable Specifications" means the functional, performance and operational characteristics and other requirements of the Products as such are described in: (1) the Prime Contract, including the applicable Federal Information Processing Standards; (2) the descriptions and technical specifications contained in all documents comprising or referenced in this Subcontract, including Schedule J, STATEMENT OF WORK; and (3) the published technical specifications for the Products. C. DAY. "Day" means calendar day unless otherwise specified. D. EQUIPMENT. "Equipment" means the hardware and equipment products and features (including firmware, microcode, and parts) listed on Schedule A, EQUIPMENT. E. PRODUCTS. "Products" shall collectively refer to the Equipment, Software, documentation and technical data listed on Schedules A, B and C. F. SERVICES. "Services" means all services to be rendered by Subcontractor hereunder and as specified in Schedules F and G. G. SOFTWARE. "Software" means the licensed systems and programs including all related documentation and material pertaining to said systems or programs (including firmware and microcode), listed on Schedule B, SOFTWARE, including all corrections, improvements, enhancements, upgrades and updates thereto, and any supporting programs necessary for the proper functioning thereof. H. SYSTEM. "System" means a combination of Equipment and Software in a particular configuration and in strict accordance with the Applicable Specifications. 2. TERM OF PRIME CONTRACT Notwithstanding anything herein provided, this Subcontract (including any issued but unfilled Purchase Orders) may be terminated by Unisys in whole or in part in the event of termination, expiration or nonrenewal of the Prime Contract for any reason, including, but not limited to, a termination for convenience, default or termination pursuant to any provision of the Prime Contract or direction by the Government to terminate this Subcontract. Unisys shall give written notice to Subcontractor as promptly as practicable after receipt by Unisys of any notice, written or otherwise, of termination, expiration of or intent not to renew the Prime Contract. If this Subcontract is so terminated, Unisys shall not be liable for any Services performed by Subcontractor or Products tendered pursuant to this Subcontract after the date of Unisys first giving of any notice (oral or written) of termination of the Prime Contract and this Subcontract. 3. PURCHASE ORDERS A. PURCHASE ORDER COMPLETION. Except as specifically directed by Unisys, any Purchase Order issued during the Term of this Subcontract and not completed within that period shall be completed by Subcontractor within the time specified in the Purchase Order, and shall continue to be subject to the terms of this Subcontract. 4. PRICE AND PAYMENT A. ALL INCLUSIVE PRICE. The purchase price/license fee specified in the Schedules is an all-inclusive price for the Products and Services and includes all taxes (federal, state and local). There shall be no additional charges for Products or Services provided by Subcontractor, or for fulfillment of Subcontractor's obligations herein, unless expressly set forth in this Subcontract. 5. TITLE AND RISK OF LOSS A. TITLE. Title to Products purchased hereunder shall pass directly from Subcontractor to the Government on the date(s) of formal acceptance by the Government, regardless of when or where the Government takes physical possession, unless the Prime Contract or this Subcontract specifically provides for earlier passage of title. B. RISK OF LOSS. Subcontractor shall be responsible for all risk of loss or damage to the Products ordered hereunder until the Acceptance Date, unless such loss is caused by the fault or negligence of Unisys or the Government, and without contribution thereto by Subcontractor. 6. CONFIDENTIAL INFORMATION AND DISCLOSURE A. Any information which either party may disclose to the other party shall not be deemed to be confidential and shall be acquired free from any restriction, unless the information is proprietary to the disclosing party and, if it is disclosed in tangible form, the disclosing party marks such information as being confidential to it by marking such information as "Proprietary," "Restricted," or "Confidential." Any confidential information disclosed verbally will be identified as confidential at the time of disclosure and thereafter reduced to tangible form with a copy, prominently marked as aforesaid, delivered to the receiving party within ten (10) days of the verbal disclosure. When a writing contains both confidential and nonconfidential information, the disclosing party shall specifically note the information which is confidential. B. Each party shall exercise the same degree of care to avoid the publication or dissemination of the confidential information of the other party as it affords to its own confidential information of a similar nature which it desires not to be published or disseminated. Confidential information disclosed under this Subcontract shall only be used by the receiving party in the furtherance of this Subcontract or the performance of its obligations hereunder. C. The obligation of the parties not to disclose confidential information shall survive the termination or cancellation of this Subcontract. However, neither party shall be obligated to protect confidential information of the other party which: (1) is rightfully received by the receiving party from another party without restriction; (2) is known to or developed by the receiving party independently without use of the confidential information; (3) is or becomes generally known to the public by other than a breach of duty hereunder by the receiving party; (4) has been or is hereafter furnished to others without restriction on disclosure; or (5) is known or available to the receiving party by inspection or analysis of products available in the market. D. The obligation not to use or disclose said confidential information shall end five (5) years after the date of receipt of said confidential information, except with respect to any Software, for which the obligation shall continue until the occurrence of any of the events listed in Subparagraph C, above. Nothing contained herein shall be construed as preventing Unisys from sublicensing or marketing Software or documentation to the Government. Unisys shall be permitted to disclose confidential information to its affiliated entities, third parties and subcontractors for their use in the furtherance of the Program; provided, however, that such affiliated entities, third parties and subcontractors agree to protect such information to the extent provided herein. E. Unisys is authorized to incorporate Subcontractor- provided Proprietary Information in submissions to the Government provided such Proprietary Information bears an appropriate restrictive legend. 7. INDEPENDENT CONTRACTORS It is agreed that the relationship between the parties is that of independent contractors, and nothing contained in this Subcontract shall be construed or implied to create the relationship of partners, joint ventures, agent and principal, employer and employee, or any relationship other than that of independent contractors. At no time shall either party make any commitments or incur any charges or expenses for or in the name of the other party. 8. INFRINGEMENT INDEMNIFICATION A. Subcontractor agrees to indemnify and hold harmless Unisys and the Government from any claim, liability, damage or expense including but not limited to legal expenses of whatever kind for, or on account of, patent infringement, copyright infringement, misappropriation of trade secrets or violation of other proprietary rights in connection with or relating to the use, copying, reproduction, distribution, licensing or other disposition of any portion of the Products. Subcontractor agrees to defend or settle, at Subcontractor's expense, all suits or proceedings arising out of any of the foregoing; provided, however, that Unisys shall give Subcontractor prompt written notice of all suits or threats of suit and other such claims concerning patent or copyright infringement or misappropriation of trade secrets and other intellectual property against Unisys or the Government. Unisys, at its own expense, shall have the right to participate in Subcontractor's defense of any such action through Unisys own counsel. In the event that Subcontractor fails after notice, to adequately defend or settle under this Section, Unisys shall have the right of prosecuting and defending such action or actions and to collect such costs and expenses (including attorneys' fees) from Subcontractor and shall further have the right to charge Subcontractor with any and all awards, damages and court costs in such action or actions and to collect such awards, damages and court costs from Subcontractor. B. If the Products are held to be an infringement or misappropriation for which Unisys is indemnified by Subcontractor, and its use is enjoined, Subcontractor shall, at Subcontractor's option and expense, either: (1) procure for Unisys the right to continue using or reselling/sublicensing the Products, and for the Government the right to continue using the Products; or (2) replace or modify the Products in such a way that they shall not constitute an infringement or misappropriation, provided all Prime Contract and Subcontract specifications of performance are met. In the event Subcontractor is unable to secure such right of use for Unisys and the Government or to secure a suitable replacement product, Subcontractor shall indemnify Unisys and the Government for losses or damages sustained. Subcontractor shall not be liable under this Section if the Products have been modified by any of the indemnified parties and such modification is solely the cause of any such infringement or misappropriation unless such modifications were made in accordance with Subcontractor's instructions. 9. INDEMNIFICATIONS A. Each party (the "Indemnifying Party") shall hold harmless the other party from any claims of personal injury or property damage arising from any act or omission of the Indemnifying Party. B. In the event any price included in the Prime Contract is reduced or liquidated or other damages or credits are assessed against Unisys because of: (1) any violation by Subcontractor of any law, regulation or order required to be complied with hereunder; (2) any undisclosed failure on the part of Subcontractor to timely furnish any Product or Service required by the terms of this Subcontract or any other breach of this Subcontract by Subcontractor; (3) any failure on the part of Subcontractor to provide any certification, report or supporting information required hereunder; (4) any adverse finding against Subcontractor by the DCAA or other cognizant audit agency; (5) any false claim submitted by Subcontractor, or misrepresentation of fact or fraud by Subcontractor; then, and in that event, Subcontractor shall indemnify Unisys to the full extent of any damages, costs, credits or charges assessed by the Government against Unisys, which are due to the fault or failure to perform of Subcontractor, and not due to the fault or failure to perform of the Government or Unisys. 10. RELEASE OF INFORMATION Any Subcontractor news release, public announcement, advertisement or publicity concerning this Subcontract or the Prime Contract will be subject to prior written approval of Unisys. Subcontractor shall not disclose any information relating to this Subcontract to any person not authorized by Unisys or the Government to receive it. 11. SUBCONTRACTOR PERSONNEL Subcontractor shall be responsible for selecting and supervising personnel who are well qualified to perform the required services and for ensuring that such personnel comply with Unisys and Government security and Prime Contract requirements. Unisys may direct Subcontractor to remove any employee from an assignment to perform Services under this Subcontract for reasons of security or misconduct, or failure to perform in a manner reasonably acceptable to Unisys or the Government. 12. CONFLICT OF INTEREST Subcontractor agrees that it will not engage directly or indirectly either for itself, or with or for any other person or entity in any work or undertaking which shall conflict with or create any legal impediment against Subcontractor's performance of its obligations under this Subcontract and the rights and licenses granted to Unisys hereunder. Subcontractor represents that there is no such present conflict of interest nor any such legal impediment. 13. NOTICE OF DELAY. A. Time is of the essence in this Subcontract. B. Whenever any occurrence is delaying or threatens to delay Subcontractor's timely performance under this Subcontract, Subcontractor shall promptly give notice thereof, including all relevant information with respect thereto, to Unisys. 14. DISCLAIMER EXCEPT AS EXPRESSLY STATED HEREIN, NEITHER PARTY HAS MADE ANY WARRANTIES OR REPRESENTATIONS, EXPRESS OR IMPLIED BY OPERATION OF LAW OR OTHERWISE, CONCERNING THE PRODUCTS TO BE PROVIDED HEREUNDER, THE SCOPE OR DURATION OF ANY MARKETING EFFORT WHICH UNISYS MAY UNDERTAKE, OR THE SUCCESS OF ANY SUCH MARKETING EFFORT. NEITHER PARTY HAS RELIED ON ANY EXPRESS OR IMPLIED REPRESENTATION OF THE OTHER PARTY, WRITTEN OR ORAL, AS AN INDUCEMENT TO ENTERING INTO THIS AGREEMENT. 15. LIMITATION OF LIABILITY EXCEPT AS PROVIDED IN THE INDEMNIFICATION PROVISIONS OF THIS SUBCONTRACT, IN NO EVENT SHALL EITHER PARTY BE RESPONSIBLE OR LIABLE TO THE OTHER OR ANY THIRD PARTY FOR INDIRECT, SPECIAL, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR LOST PROFITS OR REVENUES OF THE OTHER OR ANY THIRD PARTY, EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. 16. STATUTE OF LIMITATIONS No party may commence an action under this Subcontract more than two (2) years after the occurrence of the event upon which such action is based, or, if the event upon which such action is based is not discoverable by the injured party when it has occurred, more than two (2) years after such default could, in the exercise of due diligence, have been discovered by such party; provided, however, if the Government commences any action under the Prime Contract against Unisys, which action directly or indirectly concerns this Subcontract, then this limitation does not apply. 17. ASSIGNMENT Subcontractor shall not assign or transfer its rights, interests or obligations under this Subcontract without the prior written consent of Unisys. Any unauthorized assignment or transfer shall be null and void, and Subcontractor shall remain liable to Unisys for full performance of its obligations hereunder. 18. CAPTION/HEADINGS The captions and headings of the articles, sections and paragraphs contained herein have been inserted for the convenience of the parties and shall not be construed as a part of or modifying any provisions of this Subcontract. 19. WAIVER The failure of either party to insist, in any one or more instances, upon the performance of any of the terms, covenants or conditions of this Subcontract or to exercise any right hereunder, shall not be construed as a waiver of the future performance of any such term, covenant or condition or the future exercise of such right. 20. GOVERNING LAW This Subcontract shall be construed, governed and interpreted in accordance with the laws, but not the rules relating to the choice of law, of the Commonwealth of Virginia, provided, however, that to the extent Federal common law of government contracts (I.E., decisions of federal courts or boards of contract appeals) exists on substantive matters requiring construction under this Subcontract, such Federal common law shall apply in lieu of state law. 21. SEVERABILITY If any provision of this Subcontract is held or determined to be invalid or unenforceable, the remaining provisions shall continue in full force and effect as if this Subcontract had been executed with the invalid provision eliminated. 22. SURVIVAL OF PROVISIONS In addition to the rights and obligations which survive as expressly provided for elsewhere in this Subcontract, the articles and provisions which by their nature should survive shall survive and continue after any termination or cancellation of this Subcontract. 23. ENTIRE AGREEMENT This Subcontract, together with the Schedules annexed hereto and the documents incorporated herein by reference, constitute the entire agreement between the parties with respect to the subject matter hereof and supersedes all previous proposals, negotiations, representations, commitments, writings, agreements and other communications, both oral and written, between the parties. This Subcontract may not be released, discharged, changed or modified except by an instrument in writing signed by a duly authorized representative of each of the parties.