<PAGE>

                                 EXHIBIT 10.25

                                      to

                                PHAMIS, INC.'s

                                 ANNUAL REPORT

                                      on

                                   FORM 10-K




"XXXXXXX" = omitted, confidential material, which material has been separately
filed with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

<PAGE>

                                 EXHIBIT 10.25
                             AMENDMENT NUMBER FOUR
                                       TO
                     TANDEM ALLIANCE AGREEMENT NUMBER 7467


     This Amendment (the "Amendment") to that certain Tandem Alliance Agreement
dated December 7, 1994 (the "Agreement"), is made and entered into by and
between Tandem Computers Incorporated, a Delaware corporation having its
principal place of business at 10435 North Tantau Avenue, Cupertino, California,
95014 ("Tandem") and PHAMIS, Incorporated, a Washington corporation having its
principle place of business at 1001 Fourth Avenue Plaza, Suite 1500, Seattle,
Washington, 98154-1144 ("PHAMIS").

                                    RECITALS

     WHEREAS, the Agreement and its related Exhibits and amendments are due to
expire on January 31, 1997, and

     WHEREAS, Tandem and PHAMIS wish to extend the Agreement, with the
modifications set forth in the attachments hereto, for an additional five-year
period,

     NOW, THEREFORE, in consideration of the mutual promises, obligations and
agreements herein, the parties hereby agree as follows:

     1. The current Exhibit B3, Mandatory Software Sublicensing Terms, shall be
deleted in its entirety and the attached Exhibit B3 substituted therefor.

     2. The current Exhibit B4 of the Agreement shall be deleted in its entirety
and the attached Schedule TA-SC and Exhibit B4 substituted therefor.

     3. Alliance Member selects Discount Level 6, which represents an annual
purchase level of $XXXXXX and a discount of XX% for Hardware and One-Time
License Charges and XX% for Monthly License Charges.

     4. A new Schedule TA-D, Alliance Member Hardware Product Services
Agreement, is hereby added.

     5. The new expiration date of the Agreement will be January 31, 2002.

     Other than as specifically stated above and in the attachments, all other
terms and conditions of the Agreement remain unchanged.

PHAMIS, INCORPORATED                TANDEM COMPUTERS INCORPORATED

By:  /s/ Frank T. Sample             By:  /s/ June R. Klein
    --------------------                  -----------------
Name:  Frank T. Sample               Name:  June R. Klein
       ----------------                     -------------

Title: President & CEO               Title: Region Controller
       ---------------                      -----------------

Date:  March 12, 1997                Effective Date:  February 1, 1997
       --------------                                 ----------------

                                                        Page 1 of 16
<PAGE>

                                   EXHIBIT B3

                     MANDATORY SOFTWARE SUBLICENSING TERMS

1. Grant. [Alliance Member] hereby grants Customer a non-transferable, non-
   -----
exclusive license, without right to sublicense, to use the software developed or
acquired by Tandem Computers Incorporated ("Tandem") and delivered to Customer
under this Sublicense Agreement ("Software"), exclusively on the Tandem computer
system owned, possessed and operated by Customer and specified in [Alliance
Member]'s invoice ("Designated System"). No source code or license to use source
code is provided hereunder. Software includes the programs delivered to
Customer, all related documentation and any update, revision, translation,
adaptation, modification, derivation or copy of the foregoing. Software does not
include software delivered to Customer with a shrink-wrap license. As to such
licenses, Customer agrees to be bound by the terms set forth therein, unless it
notifies [Alliance Member] of any objections and returns the software within 10
days of receipt thereof.

2. Use. Customer will use the Software only in its or its permitted users' own
   ---
internal business operations. Customer will not permit any other person to use
the Software, except to enter or retrieve information in the ordinary course of
processing transactions. If the Designated System becomes temporarily inoperable
due to natural disaster, accident or other cause beyond Customer's control,
Customer may use the Software on another Tandem computer until the Designated
System becomes operable. Customer may make two back-up copies of the Software
upon which it will reproduce all confidentiality and proprietary notices.
Customer will not otherwise copy, translate, modify, adapt, decompile,
disassemble or reverse engineer the Software.

3. Ownership. Title to the Software and all patents, copyrights, trademarks,
   ---------
mask works, circuit layout rights, design rights, trade secrets and other
proprietary rights in or related to the Software are and will remain the
exclusive property of Tandem or its licenser, whether or not specifically
recognized or perfected under the laws of the country where the Software is
located. Customer will not take any action that jeopardizes such proprietary
rights nor will it acquire any right in the Software, except the limited use
rights specified herein.

4. Confidentiality. The Software incorporates confidential and proprietary
   ---------------
information developed or acquired by Tandem. Customer will protect the
confidentiality of the Software and all such information with the same degree of
care as it employs to protect its own confidential and proprietary information,
but at least with a reasonable degree of care. Customer will not allow the
removal or defacement of any confidentiality or proprietary notice placed on the
Software, which notice will not constitute publication or otherwise impair the
Software's confidential nature. Tandem will protect the confidentiality of
Customer's confidential information with which it may come into contact with the
same degree of care as it employs to protect its own confidential and
proprietary information, but at least with a reasonable degree of care. Neither
party will have confidentiality obligations with respect to any confidential or
proprietary information incorporated which (i) was in its lawful possession
prior to receipt of such confidential information without any obligation to keep
it confidential, (ii) is later lawfully obtained by it from a third party under
no obligation of secrecy, (iii) is independently developed by it or (iv) is, or
later becomes, available to the public through no act or failure to act by it.
Neither party will disclose confidential information to any person, except to
those of its employees, agents or consultants who require access in the course
of its internal business. Before disclosure to such parties, Customer will state
in writing that such employees, agents or consultants expressly: (i) recognize
Tandem's or its licenser's confidential and proprietary rights in the Software,
(ii) agree to comply with the use, ownership, confidentiality and export control
restrictions applicable to the Software, and (iii) acknowledge Tandem's, its
licenser's and [Alliance Member]'s right to enforce these restrictions, in each
case in writing . The parties will be liable for non-compliance by their
respective agents and contractors to the same extent it would be liable for non-
compliance by its employees.

5. NO WARRANTIES; LIMITATION ON DAMAGES. THIS SUBLICENSE AGREEMENT DOES NOT
   ------------------------------------
INCLUDE ANY WARRANTIES, EXPRESS OR IMPLIED, BY OR ON BEHALF OF TANDEM OR ANY
ENTITY GRANTING TANDEM LICENSE RIGHTS TO THE SOFTWARE. IN NO EVENT WILL TANDEM
OR ITS LICENSER (A) BE LIABLE FOR ANY SPECIAL, PUNITIVE, MORAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES, WHETHER OR NOT FORESEEABLE, INCLUDING, BUT NOT LIMITED
TO, LOST PROFIT OR DATA OR (B) INCUR AGGREGATE LIABILITY IN ANY ACTION OR
PROCEEDING WHICH EXCEEDS THE TOTAL AMOUNT ACTUALLY PAID TO TANDEM BY ALLIANCE
MEMBER FOR THE SOFTWARE THAT DIRECTLY CAUSED THE DAMAGE.

6. Termination. This Tandem Software Sublicense Agreement may be terminated with
   -----------
30 days prior written notice upon violation by Customer of any terms or
conditions of this Tandem Software Sublicense Agreement. During the 30-day
notice period, Customer will immediately cease any and all activity which is in
violation of the Tandem Software Sublicense Agreement and may attempt to cure
such violation. In the event a cure is adequately effected, in Tandem's opinion,
no termination will occur as a result thereof. Notwithstanding the foregoing,
nothing in this Tandem Software Sublicense Agreement shall be construed to limit
or delay Tandem's rights to seek immediate injunctive relief for any breach or
violation hereof by Customer.

7. Export Controls. The confidential information of Tandem, and all related
   ---------------
technical documents and materials are subject to export controls under the U.S.
Export Administration Regulations and related U.S. laws. Customer will (i)
comply strictly with all legal requirements established under these controls,
(ii) cooperate fully with Tandem in any official or unofficial audit or
inspection that relates to these controls and (iii) not export, re-export,
divert, transfer or disclose, directly or indirectly, any Software, confidential
information of Tandem, or related technical documents and materials or any
direct product thereof to any country (or to any national or resident thereof)
which the U.S. Government determines from time to time is a country (or end-
user) to which such export, re-export, diversion, transfer, or disclosure is
restricted, without obtaining the prior written authorization of Tandem and the
applicable U.S. Government agency. If Customer is located outside the United
States, see Attachment A for the list of export-restricted countries.

8. Assignment; Enforcement. Customer may not assign, delegate or otherwise
   -----------------------
transfer the Software, this Sublicense Agreement or any of its rights or
obligations without Tandem's and [Alliance Member]'s prior approval. Any
assignment, delegation or transfer which violates the foregoing will be void. If
[Alliance Member] ceases to be Tandem's authorized value-added reseller for any
reason, then [Alliance Member]'s rights against Customer may be assigned to
Tandem or its designee. Customer hereby consents to any such assignment and, at
Tandem's request, will execute any instrument which may be required to perfect
the assignment. The provisions of this Sublicense Agreement are intended to
inure to the benefit of Tandem and its licenser. Tandem or its licenser has the
right to enforce these provisions directly against Customer, whether in
Tandem's, its licenser's or [Alliance Member]'s name, and Tandem and its
licenser accept this right.

                                                                Page 2 of 16
<PAGE>

                                 SCHEDULE TA-SC

                        ADDITIONAL TERMS AND CONDITIONS

A.  SPECIAL TERMS AND CONDITIONS APPLICABLE TO KAISER HOSPITALS:

  1. Tandem will act as the Project Manager on all sales to Kaiser Hospitals in
Northern California. Tandem Hardware purchases and Software Initial License Fees
for Kaiser Hospitals in Northern California will pass through Tandem.

  2. Tandem will use best efforts to encourage Kaiser Hospitals in Portland,
Oregon to purchase and license Tandem Products directly through Alliance Member
when such purchases and licenses are associated with Alliance Member's
Application Software. Alliance Member's then-current discounts will apply to
such orders.

B.  SERVICES PROVIDED FOR SUPPORT CHARGES:

  1. In consideration of payment of annual Support Charges, as noted in Exhibit
B4, Alliance Member will be entitled to receive Support Center Assistance
coverage on Current Products only for its Customers with Himalaya System
Software. Alliance Member will act as the focal point for Customer's calls for
service. If Alliance Member determines that the service is related to Tandem's
Software, corrective Service will be furnished to Alliance Member via Tandem or
the Tandem NonStop Support Center ("TNSC") and will include action to verify the
existence of a defect, determine the severity or impact of the defect, and
determine conditions under which the defect may recur. During such verification,
Tandem may request further information about the defect from Alliance Member.
After such information is provided to enable Tandem to duplicate or verify the
defect, Tandem will:

     a. for a Critical Defect (a defect is critical when Customer's application
is down or is at high risk, business functions cannot be conducted, or Customer
is experiencing continual failures or data corruption as a result of the
defect), provide Service via phone or fax from the TNSC 24 hours a day, 7 days a
week, excluding national holidays. Tandem will use commercially reasonable
efforts to provide a temporary solution of or workaround to the defect. Except
for workstation Software, Tandem will generally commence action during the
initial contact and provide on-site assistance to Alliance Member location when
deemed necessary by Tandem and Alliance Member, at Alliance Member's expense per
the terms of Section 4.3 of Schedule TA-B of the Agreement; or

     b. for a non-critical defect or any defect in workstation Software, provide
Service via phone from the TNSC between the hours of 8:00 a.m. to 5:00 p.m.,
Monday through Friday, excluding national holidays ("Standard Work-Shift
Hours"). Calls for non-critical defects or defects in workstation Software will
be accepted and logged at the time received, whether during or after Standard
Work-Shift Hours. Tandem will generally commence action during the initial
contact or within 4 Standard Work-Shift Hours for workstation Software. Tandem
will provide either the actions set forth in 1.a, above, or a statement that the
defect will be corrected in a future Release; or

     c. provide a statement to Alliance Member that the Licensed Product
operates as described in Tandem's current user documentation or that the defect
arises when such Product is used other than in a manner for which it was
designed.

  2. Prior to contacting Tandem for corrective Service for non-critical defects,
Alliance Member is responsible for:

     a. researching the Tandem database to determine if there is an interim
product modification ("IPM") that will address the problem;

     b. identifying, documenting and reporting each problem with a Supported
Product necessitating Service;

     c. supplying Tandem with all documentation and assistance necessary to
demonstrate and allow Tandem to diagnose the problem;

     d. promptly installing each solution to such problem provided by Tandem;

     e. designating an employee and an alternate who (i) will direct all
requests for information and maintenance to the TNSC, (ii) are familiar with and
able to perform diagnostic tests for operation of the Supported Products, and
(iii) will provide Tandem with assistance and information necessary to
demonstrate, diagnose and correct malfunctions.

     f. ensuring that Customers install and maintain a direct, dedicated
telephone line that does not pass through a switch before connecting to
Customer's System enabling Tandem to access the System to perform diagnostic
tests.

     g. ensuring that the Customer maintain the environment of and operate each
Product according to instructions furnished by the manufacturer.

  3. One copy of software media, Releases and updates to Releases, documentation
and updates to documentation via CD are provided to Alliance Member.

                                                                Page 3 of 16
<PAGE>

                                   EXHIBIT B4

                           HIMALAYA K DISCOUNT TERMS

The Exhibit B4 is effective from February 1, 1997 to January 31, 1998 only.

1. APPLICABILITY. This exhibit applies only to Tandem's Himalaya K Products
   -------------
listed in the Price Guide on the Effective Date. It excludes (a) Himalaya
Products currently identified by number K2, (b) NonStop Kernel Integrity FT and
S4000 Products, (c) Integrity NR Products (including Integrity NR workstations
and Servers), (d) Tandem Source Company Products, (e) Tandem Telecom Division
Products, (f) Atalla Products, (g) Network Products (h) NT products, (i) CLX/R
Products and (j) Products purchased under special promotional and trade-in
programs, and (k) Himalaya S Products("Excluded Products").

2. DISCOUNTS. Tandem grants the following Discounts to Alliance Member:
   ---------

   2.1 Certain Himalaya Products. Himalaya Products currently identified by
       -------------------------
numbers K11x will receive a XX% Discount. Himalaya Products currently identified
by number K12x and K2xx will receive a XX% Discount.

   2.2 Software Discounts. Software discounts apply only to One-time License
       ------------------
Charges (OLC) or Monthly License Charges (MLC).

   2.3 Himalaya K Products.
       -------------------

<TABLE>
<CAPTION>
                        Annual Product
Discount Level   Purchase Volume (U.S. Dollars)   Hardware & OLC Software     MLC Software
--------------   ------------------------------   -----------------------     ------------
<S>             <C>                                      <C>                      <C>
Level 1         less than $XXXX                          XX%                      XX%
Level 2         $XXXX - $XXXX                            XX%                      XX%
Level 3         $XXXX - $XXXX                            XX%                      XX%
Level 4         $XXXX - $XXXX                            XX%                      XX%
Level 5         $XXXX - $XXXX                            XX%                      XX%
Level 6         greater than $XXXX                       XX%                      XX%
</TABLE>

   2.4    Kaiser Sales.
          ------------

   2.4.1 Customer orders in which Alliance Member is the sales lead in licensing
Alliance Member Application Software to Kaiser California and Kaiser California
places orders for Tandem Products directly with Tandem for Systems on which
Kaiser California is operating Alliance Member's Application Software, Tandem
agrees to pay Alliance Member the difference between Alliance Member's discount
percentage and Kaiser California's earned discount.

   2.4.2 Payment to Alliance Member of the sum noted in 2.4.1, above, shall be
due 90 days from the original shipment date of the Tandem Products shipped to
Kaiser California, or within 30 days after Tandem has received payment from
Kaiser, whichever is sooner. Notwithstanding the above, in any case where
Alliance Member is the cause of Kaiser's failure to make timely payments to
Tandem for Tandem Products shipped to Kaiser California, payment to Alliance
Member shall be within 30 days after Tandem has received such delayed payment
from Kaiser.

   2.4.3 All Tandem Hardware purchases and Software license fees or charges for
Kaiser California that have been influenced by Alliance Member's Application
Package shall accumulate toward Alliance Member's Purchase Volumes.

   2.5 NSSQL Product. The following discounts will apply to MLCs purchased by
       -------------
PHAMIS for resale to its Customers, subject to the restrictions indicated in
Section 2, below:
<TABLE>
<CAPTION>

          TIME PERIOD            MLC DISCOUNT             # OF LICENSES
          <S>                        <C>                     <C>
          10/96 - 12/97              XX%                    XX
          1/98 - 12/98               XX%                    XX
          1/99 - 12/99               XX%                    XX
          1/2000 - 12/2000           XX%                    XX
          1/2001>            PHAMIS' then-current level     XX
                             of discount

</TABLE>

       The restrictions applicable to the above discounts are as
                                follows:

       2.5.1  The discounts may be applied only to NSSQL product for use on
Himalaya K platforms.

       2.5.2  The licenses Tandem will sell to PHAMIS during the time period at
the discounts designated above are limited to the number indicated in the column
entitled "# of Licenses." NSSQL product purchased in excess of the numbers
indicated above will be priced at Tandem's then-current List Price, less PHAMIS'
standard Alliance Member discounts applicable to such product.

       2.5.3  The above discounts are not available when the NSSQL product is to
be packaged with the PHAMIS Enterprise View(TM) product in a separate Tandem
system.

       2.5.4  The above discounts are not available when the NSSQL product is to
be installed on a new Tandem System; only PHAMIS' existing installations are
eligible.

       2.5.5  The above discounts are available only on NSSQL product that is
licensed on a per-system basis; user-based NSSQL will not be eligible for the
above discounts.

       The NSSQL discounts above will survive expiration of the Agreement or any
subsequent Alliance Member agreement executed by the parties.

       2.6 Remanufactured Products. For any Tandem Product classified and sold
           -----------------------
as remanufactured, Alliance Member will receive a XX% discount off of the United
States list price of new products during the term of the Agreement.

       2.7 Special DS25 Promotion. Alliance Member will receive a XX% discount
           ----------------------
off of the List Price of the software packages marketed as "DS25" during the
term of the Agreement.

                                                                Page 4 of 16
<PAGE>

3. SOFTWARE SUPPORT CHARGES. Support Charges (SCs) for Himalaya K Products
   ------------------------
System Software will be paid to Tandem on each anniversary date of the Effective
Date of the Agreement by Alliance Member as follows:

<TABLE>
<CAPTION>

         # of Systems Worldwide with       Annual
           Himalaya K Software          Fee to Tandem
        -----------------------------   ---------------
        <S>                              <C>
             X -  XX systems             $     X
            XX -  XX systems                XXXX
            XX -  XX systems               XXXXX
            XX -  XX systems               XXXXX
            XX - XXX systems               XXXXX
           XXX - XXX systems               XXXXX
                XXX+ systems               XXXXX
</TABLE>

4. PURCHASE VOLUME COMMITMENT.
   --------------------------

  4.1  Discount Level. Alliance Member has selected the Discount Level indicated
       --------------
on the signature page of this Amendment and commits to purchase 100% of the
applicable Purchase Volume during each 12-month period of the term of this
Schedule (each a "Period").

  4.2.  Determination of Purchase Volume. Alliance Member's Purchase Volume
        --------------------------------
during a Period shall be the sum of the U. S. List Prices of new Products and
the actual purchase prices of re-manufactured Hardware purchased during a
Period, less any credit for trade-in Products ("Cumulative Prices"). Although
Excluded Products do not receive Discounts, the Cumulative Prices of those
Products may be included in determining actual Purchase Volume, but only if the
trade-in or promotional program allows it for Excluded Products purchased under
such programs.

  4.3  Exceeding Discount Level. If Alliance Member's actual Purchase Volume
       ------------------------
during a Period exceeds the Purchase Volume required for the corresponding
Discount Level, Alliance Member will be assigned a new Discount Level and a
corresponding Purchase Volume and Discount for the remainder of the Period.

  4.4  Renegotiation of Discount Level. Before the end of a Period, the parties
       -------------------------------
will determine a new Discount Level for the next Period based on Alliance
Member's actual Purchase Volume for the preceding Period. If the parties extend
the initial or any subsequent term of the Agreement, then before the extended
term becomes effective they will determine a new Discount Level for such term
based on Alliance Member's actual Purchase Volume for the preceding term.

5.  CO-OP ACCOUNT. In addition to the discounts offered in Section 2, Tandem
    -------------
will credit 2% of the Discounted Price of all Hardware sales paid for by
Alliance Member into a cooperative account administered by Tandem or its agent
("Co-op Account"). The 2% Co-op Credit will only apply to Software for which a
One-time License Fee is charged and paid for by the Alliance Member. Tandem may
change its administrator at any time in its sole discretion. Neither this
Agreement nor the agreement between Tandem and its administrator is intended to
confer any third party beneficiary rights on Alliance Member. Co-op Account
credits may be used solely for approved activities described in Tandem's Co-op
Account guidelines ("Claims Administration Guide for Channel Partners"), product
education and the purchase or licensing of Tandem Products to use as sales/demo
equipment or development Systems, all of which enhance the marketability and/or
value of Application Packages. Credits must be used within 1 year of the date
first credited to the Co-op Account or they will expire. Any unapplied credits
in the Co-op Account at the termination or expiration of Schedule TA-B will also
expire, unless the parties renew this Schedule or enter into a new agreement
within 30 days. In that event, such credits will be applied in accordance with
the terms of the then current Co-op Guidelines.

6.  DISCOUNT MODIFICATIONS. With 60 days prior written notice, Tandem may alter
    ----------------------
any Discount as part of a programmatic change to Tandem Alliance Member
discounts in the following situations: (i) for Products manufactured by Tandem,
if Tandem reduces the List Price, provided that the new Discounted Price for
Hardware will not exceed its immediately preceding Discounted Price; (ii) for
Products acquired by Tandem from a third party, when Tandem determines that the
alteration is necessary or appropriate.

                                                                Page 5 of 16
<PAGE>

                                 SCHEDULE TA-D

              ALLIANCE MEMBER HARDWARE PRODUCT SERVICES AGREEMENT

                                    RECITALS

A. Alliance Member may wish to be the primary interface for the hardware
   maintenance of Tandem equipment ("Hardware") sold by Alliance Member to
   customers to whom it has sold Hardware in conjunction with Alliance Member's
   application(s) ("Customers").

B. Alliance Member may wish to engage Tandem as a subcontractor to provide
   maintenance services on Hardware to Customer(s) pursuant to a contract
   between Alliance Member and Customer(s).

C. Tandem wishes to provide such services on the terms and conditions contained
   herein.

                                   AGREEMENTS

Now, therefore, in the event Alliance Member elects to be the primary interface
as set forth in A, above, the parties agree as follows:

1. PROVISION OF MAINTENANCE SERVICES

   Tandem hereby authorizes Alliance Member to contract with Customers to
   provide maintenance for the Hardware. Alliance Member will not provide
   maintenance services for the Hardware except in accordance with the terms of
   this Agreement.

2. CONTRACT MANAGEMENT

   A. Contract Format. Alliance Member will provide such Hardware maintenance
      services to Customers, if at all, pursuant to a Hardware maintenance
      agreement ("Product Services Agreement") substantially in the form of
      Tandem's current end-user maintenance agreement, an example of which is
      attached hereto as Exhibit 1.

   B. Standard Agreements. Alliance Member will obtain an executed Product
      Services Agreement and Service Plan Order Form from each Customer desiring
      maintenance.

   C. Non-Standard Agreements. Any Product Services Agreement containing non-
      standard terms with respect to services to be provided will not be
      effective without the prior written consent of Tandem. Tandem's customer
      service organization will assist Alliance Member with the completion of
      any non-standard Amendment to be attached to a Product Services Agreement.
      Price quotations to Alliance Member protected for a period of time as
      outlined in the Alliance Member Agreement will not cause a Product
      Services Agreement to be construed as non-standard under this Section.
      Should Tandem discover that Alliance Member has offered any terms,
      services, or configurations to Customer different from Tandem's standards,
      Alliance Member will make, or cause to be made, any necessary corrections
      to the Product Services Agreement with Customer.

      IN ANY EVENT, TANDEM WILL NOT BE OBLIGATED IN ANY WAY AS A RESULT OF
      UNAPPROVED DEVIATIONS IN TERMS, SERVICES, OR CONFIGURATION WITH CUSTOMER
      OR NON-STANDARD PRICING TO ALLIANCE MEMBER.

   D. Contract Administration. Alliance Member will promptly supply Tandem with
      copies of all Product Services Agreements executed by Customers and copies
      of all notices pertinent to Tandem and received or sent by Alliance Member
      under such Product Services Agreements.

3. MAINTENANCE CHARGES

   A. Published Charges. The charges for maintenance services charged to
      Alliance Member will be Tandem's standard maintenance charges as published
      from time to time by Tandem less any discount as stated in Section 6,
      Payment, below. Tandem's currently published maintenance charges are found
      in the current version of Tandem's Product & Price Guide.

   B. Price Changes. Tandem agrees that it will provide Alliance Member with 120
      days prior written notice of any changes in Hardware maintenance charges.

4. ALLIANCE MEMBER'S RESPONSIBILITIES

   A. Initial Point of Contact. Alliance Member will be Customers' initial point
      of contact for supporting all Hardware being maintained pursuant to a
      Product Services Agreement with the service coverage elected by such
      Customers and agreed to by Alliance Member. Initial point of contact
      support will include all obligations of Alliance Member pursuant to
      Section 9 of the Alliance Member Agreement.

      Alliance Member will take all service requests from Customers is to
      distinguish software problems from hardware problems. Once categorized,
      all software application problems will be resolved by Alliance Member


                                                                Page 6 of 16
<PAGE>

      and all System-level software will be resolved by Alliance Member and
      Tandem in accordance with the Alliance Member Agreement. Hardware problems
      will be resolved by Tandem.

   B. Parts For Non-Tandem Equipment. If Tandem agrees to provide maintenance
      services on non-Tandem equipment, Alliance Member will be responsible for
      providing Tandem with all replacement parts required by Tandem to perform
      said maintenance. All non-Tandem replaced parts will become the property
      of Alliance Member.

   C. Collections and Billing. Alliance Member will bill and will be responsible
      for all collections from Customers. Alliance Member will pay Tandem for
      the Hardware maintenance services provided to Customers, regardless of
      Alliance Member's ability to collect such charges from Customers. All risk
      of non-collection will be the responsibility of Alliance Member.

   D. Service Marketing. Alliance Member will be responsible for training its
      personnel in the marketing of maintenance services, so that Alliance
      Member's personnel can explain the services and ensure that a Product
      Services Agreement is properly signed. Tandem will participate in the
      marketing of Product Services Agreements only in those cases where a non-
      standard support plan requires Tandem's expertise.

   E. Central Administrator. Alliance Member will assign a central administrator
      to act as the focal point for all issues that cannot be resolved at a
      lower level. Such administrator will have primary responsibility to ensure
      the effective coordination of the Hardware maintenance services.

5. TANDEM'S RESPONSIBILITIES

   A. Provision of Maintenance Services. Exhibit 1 to this Agreement is a sample
      of Tandem's current Product Services Agreement and Tandem's Service Plan
      Order Form. It may, from time to time, be modified by Tandem. Tandem will
      provide Alliance Member with at least 90 days notice of such modification.
      Such modifications are deemed to be included herewith in references to
      Exhibit 1.

      Subject to the limitations set forth in Exhibit 1, Tandem will provide all
      Hardware maintenance services described therein.

      Corrective maintenance requested by Customer will be provided by Tandem
      upon telephonic request by Alliance Member. Alliance Member will contact
      Tandem after initial determination has been made by Alliance Member that
      Tandem services are required to satisfy Alliance Member's obligations
      under the Product Services Agreement.

      In the event that Customer's System is down during non-standard coverage
      hours as specified by the Product Services Agreement and Service Plan
      Order Form, Tandem may provide corrective maintenance at the Alliance
      Member's request through the Tandem NonStop Support Center, on a time-and-
      materials basis.

      Tandem will schedule required preventive maintenance with Customer and
      will ensure that Alliance Member's technical support specialists are
      informed of the schedule. In addition, Tandem will promptly notify
      Alliance Member of maintenance issues if the Tandem NonStop Support Center
      is contacted automatically by the Hardware.

      Tandem will supply Customers with replacement parts in accordance with
      Alliance Member's Product Services Agreement with such Customers. Alliance
      Member will designate, in the Product Services Agreement, that all
      replaced parts will become the property of Tandem upon the exchange of
      such replaced parts with new, replaced, or exchanged parts.

      Tandem is responsible for furnishing replacement parts for Tandem
      equipment. Alliance Member is responsible for furnishing replacement parts
      for non-Tandem equipment as detailed in Section 4B above.

   B. Marketing and Contract Support Resources. Tandem will provide Alliance
      Member with some necessary sales tools, documentation and consultation so
      Alliance Member is equipped to market Hardware maintenance services and
      execute standard Product Services Agreements and Service Plan Order Forms
      with Customers.

      When approval of non-standard contracts is required from Tandem, Tandem
      will respond within a reasonable period of time, once all relevant
      information has been received by Tandem.

6. PAYMENT

   A. Contract Services. For up to $XXXXXX per year in maintenance revenue at
      list maintenance prices, Alliance Member will be entitled to a XX%
      discount off the Tandem Basic Monthly Maintenance Charges ("BMMC") for the
      Hardware and non-Tandem hardware covered under the Product Services
      Agreements.

      Tandem will review annually any discount to be provided to Alliance Member
      for Hardware maintenance services. At each annual review, if Alliance
      Member has produced over $XXXXXX in maintenance revenue at list
      maintenance prices, the discount will increase to XX% off the BMMC for
      that year for all hardware.

                                                                Page 7 of 16
<PAGE>

   B. Special Discounts. Discounts that Tandem offers to its commercial
      customers for such options as multiple-year contracts will be passed onto
      Alliance Member.

   C. Time-and-Materials Charges. Alliance Member will also pay Tandem 100% of
      all of Tandem's time-and-materials charges as well as any other charges
      that are in addition to the BMMC for services delivered by Tandem under
      any Product Services Agreements or otherwise as specified in Section 5,
      regardless of Alliance Member's ability to collect such charges from
      Customers.

   D. Invoices. Tandem will deliver to Alliance Member monthly, in advance, an
      invoice totaling all applicable BMMCs for each Product Services Agreement
      supplied by Alliance Member to Tandem pursuant to Section 2 hereof.
      Invoices for time-and-materials services will be rendered after completion
      of service.

      Invoices will be mailed to the address set forth in the first paragraph
      hereof for all services provided under this Agreement, or such other
      address as Alliance Member may provide to Tandem in writing. All such
      invoices will be due and payable 45 days after the date of such invoice.

7. CUSTOMER OPTIONS

   If Alliance Member, under its Alliance Member Agreement, has made a sale of
   an Application Computer System to a Customer already owning or leasing Tandem
   hardware, such Customer has the option to obtain its maintenance services on
   such hardware through a Product Services Agreement executed by Alliance
   Member and Customer.

   Alternatively, the Customer may choose to have all of its Tandem computer
   equipment maintained by Tandem, including those sold by Alliance Member, by
   executing a Product Services Agreement directly with Tandem.

8. CROSS-DEFAULT

   A default under the Alliance Member Agreement will be a default hereunder and
   a default hereunder will be a default under the Alliance Member Agreement.
   Under this Schedule, the following will be the events of default:

   A. If Alliance Member fails to pay any invoice for services rendered within
      the time period allowed, reasonable disputations excepted;

   B. If Alliance Member breaches any of its obligations under this Schedule and
      fails to remedy such breach to the satisfaction of Tandem within 30
      calendar days after Tandem notifies Alliance Member in writing of said
      breach.

   C. If Alliance Member ceases to conduct business in the normal course,
      becomes insolvent or bankrupt, enters into suspension of payments or
      moratorium, makes a general assignment for the benefit of creditors,
      admits in writing its inability to pay its debts as they mature, suffers
      or permits the appointment of a receiver for its business or assets, or
      avails itself of or becomes subject to any proceeding under any statute of
      any governing authority relating to insolvency or the protection of
      debtors.

9. TERM

   This Schedule will commence upon the date first written above and will
   continue as long as the Alliance Member Agreement is in effect.

10. AVAILABILITY OF REPLACEMENT PARTS

   Tandem warrants the availability of replacement parts for Tandem Hardware for
   3 years following the date of shipment of each Hardware product. Replacement
   parts may, at Tandem's option, include improved or modified parts. Parts may
   be newly manufactured, remanufactured, or used.

11. ENTIRE AGREEMENT

   This Agreement constitutes the entire agreement between Tandem and Alliance
   Member for the maintenance of Customer Hardware. There are no other
   agreements or understandings, oral or written, relating to such maintenance
   services by which the parties intend to be bound in connection with the
   Hardware.

                                                                Page 8 0f 16
<PAGE>

                                    Exhibit 1             Agreement No.
                                                                        ------
                         TANDEM COMPUTERS INCORPORATED
                              19191 VALLCO PARKWAY
                          CUPERTINO, CALIFORNIA 95014

                           PRODUCT SERVICES AGREEMENT

Name                                                                ("Customer")
     ---------------------------------------------------------------
Address

City                                              State        Zip
     --------------------------------------------       ------     -------------

hereby contracts for and TANDEM COMPUTERS INCORPORATED ("Tandem"), by its
acceptance and execution hereof, agrees to furnish hardware maintenance and/or
software support services for performance in the United States of America, in
accordance with the terms and conditions of this Agreement.

1. GENERAL TERMS AND CONDITIONS

1.1   DEFINITIONS

a. "Basic Monthly Maintenance Charge" or BMMC means the charge specified by
Tandem for Service of a Hardware product.

b. "Confidential Information" means the confidential and proprietary data or
information developed or acquired by either party and marked or clearly
designated in writing.

c. "Critical Defect." A defect is considered to be critical when Customer's
application is down or is at high risk, business functions cannot be conducted,
or Customer is experiencing continual failures or data corruption as a result of
the defect.

d. "Current Software" means any Software (excluding Software Tools) which is
contained in a Release for which Tandem has not provided Customer notification
of Service termination or for which the period of time specified in such
notification has not expired.

e. "Hardware" means any item(s) of computer and related equipment for which
Service is provided by Tandem under this Agreement.

f. "Monthly Service Charge" or MSC means the charge specified by Tandem for
Service of Software.

g. "Release" means a collection of Software product versions which is packaged
into a single entity and, as such, is made available by Tandem periodically to
its customers. A Release includes any enhancements or other changes made by
Tandem to those Software products. A Release may contain patches and bypasses
previously furnished to some customers.

h. "Service(s)" means Hardware maintenance and/or Software support service
provided by Tandem under this Agreement.

i. "Service Plan" means an optional Service plan offered by Tandem and selected
by Customer for specific Tandem products on a Service Plan Order Form.

j. "Software" means any item(s) of software for which Service is provided by
Tandem under this Agreement.

k. "Software Tool" means any item(s) of Software, developed or provided by
Tandem and used to standardize or simplify routines or functions, enhance
productivity, or assist in the maintenance of any product. Software Tools may
include metrics, routines, diagnostics, templates or other devices.

l. "Supported Product(s)" means any item of Hardware or Software for which
Service is provided by Tandem under this Agreement.

m. "System" means a collection of Hardware (excluding desktop and network
products) that is designed to operate as a functional unit.

1.2  EFFECTIVE DATE, TERM

Customer will have the right to acquire Services under this Agreement for an
initial term of 12 months and thereafter until this Agreement is terminated by
either party upon 90 days prior written notice to the other party, unless sooner
terminated as provided herein.

1.3 ORDERS, PRICES, PAYMENT TERMS, TAXES, AND TRANSPORTATION

a. Customer will order Service by submitting a Service Plan Order Form (example
attached) referencing this Agreement number (an "Order"). Orders are subject to
acceptance by Tandem.

b. Prices for Service will be as set forth in Tandem's Price Guide effective on
the date of an Order, less any applicable discount. Additional zone charges will
apply to desktop and network hardware located over 50 miles and Systems located
over 100 miles from a Tandem Service location. Service charges will not increase
for 12 months from the commencement date of such charges. Thereafter, Tandem may
increase or decrease Service charges, upon 90 days prior written notice.

c. Invoices for Service and any applicable surcharges will be issued beginning
on the Service commencement date specified in an Order and monthly in advance
thereafter unless otherwise specified on an Order. Customer will pay all
invoices, in full, within 30 days of the date of invoice.

d. Service furnished to Customer by Tandem which is beyond the scope of the
Service Plan selected by Customer or is due to Customer's failure to fulfill its
responsibilities under this Agreement will be invoiced to Customer on a time-
and-materials basis in accordance with Tandem's standard rates.

e. All quoted prices are exclusive of taxes. Customer agrees to pay any tax,
exclusive of any taxes based on Tandem's net income, resulting from this
Agreement.

1.4  CONFIDENTIALITY

a. The receiving party will keep all Confidential Information in confidence and
will not disclose any item of Confidential Information to any person other than
its employees, agents or  contractors who need to know the same in the
performance of their duties. The receiving party will protect and maintain the
confidentiality of all Confidential Information with the same degree of care as
it employs to protect its own Confidential Information, but at least with a
reasonable degree of care including requiring agents and contractors to sign a
non-disclosure agreement. The receiving party will be liable to the disclosing
party for any non-compliance by its agents or contractors to the same extent it
would be liable for non-compliance by its employees.

b. Customer recognizes that each item of Software (i) is considered by Tandem to
be a trade secret, (ii) is furnished by

                                                                Page 9 of 16
<PAGE>

Tandem to Customer in confidence, and (iii) contains proprietary and
Confidential Information, and that, accordingly, such Software constitutes
Confidential Information under this Section.

c. Confidential Information does not include any data or information which (i)
was in the receiving party's lawful possession prior to the submission thereof
by the disclosing party, (ii) is later lawfully obtained by the receiving party
from a third party under no obligation of secrecy, (iii) is independently
developed by the receiving party, or (iv) is, or later becomes, available to the
public through no act or failure to act by the receiving party.

1.5  WARRANTY

a. Hardware will meet the then-current specifications published by Tandem for
such Hardware provided that it has been continuously covered by Tandem Hardware
maintenance Service or inspected and certified by Tandem as eligible for
Service.

b. Service provided hereunder will be performed by qualified personnel in a
workmanlike manner.

1.6  WARRANTY EXCLUSION

a. THE WARRANTIES CONTAINED IN THIS AGREEMENT ARE EXCLUSIVE AND ARE IN LIEU OF
ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION,
ANY WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE.

b. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, TANDEM AND ITS SUPPLIERS DO
NOT WARRANT THAT NETWORK PRODUCTS WILL OPERATE IN ALL COMBINATIONS OF HARDWARE
AND SOFTWARE WHICH MAY BE SELECTED FOR USE BY CUSTOMER OR THAT LICENSED PRODUCTS
ARE ERROR-FREE OR THAT THEIR USE WILL BE UNINTERRUPTED.

1.7  LIMITATION OF REMEDIES AND LIABILITY

a. FOR ANY MATERIAL BREACH OF SERVICE BY TANDEM, CUSTOMER'S REMEDY AND TANDEM'S
LIABILITY WILL BE LIMITED TO A REFUND OF THE RELATED SERVICE CHARGE PAID DURING
THE PERIOD OF BREACH, UP TO A MAXIMUM OF 12 MONTHS.

b. THE REMEDIES IN THIS AGREEMENT ARE CUSTOMER'S SOLE AND EXCLUSIVE REMEDIES. IN
NO EVENT WILL TANDEM OR ITS SUPPLIERS BE LIABLE TO CUSTOMER FOR SPECIAL,
INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING LOST PROFIT OR DATA.

1.8  TERMINATION FOR DEFAULT

Should either party fail to perform any of its obligations under this Agreement
for a period of 30 days after receipt of written notice of such failure, the
non-defaulting party will have the right to terminate this Agreement, or any
Service hereunder that is the subject of such default, immediately upon delivery
of written notice to the defaulting party of its election to do so. The
foregoing rights of termination are in addition to any other rights and remedies
that either party may have.

2. SERVICES

2.1  SERVICE PLANS

The Service Plans and options available for specific Products are described in a
Service Plan Order Form.

2.2  CUSTOMER RESPONSIBILITIES

Customer will:

a. (i) Provide peripheral cabling including fiber optics, (ii) provide adequate
workspace to enable Tandem to perform Services and space for continuous
operation of any diagnostic Software Tools, and (iii) permit Tandem to remove
Software Tools for any reason.

b. (i) Identify, document and report each problem with a Supported Product
necessitating Service, (ii) supply Tandem with all documentation and assistance
necessary to demonstrate and allow Tandem to diagnose the problem, and (iii) for
Software problems, promptly install each solution to such problem provided by
Tandem.

c. Undertake appropriate backup, removal and protection of any software
programs, databases and removable storage media. At Tandem's request, Customer
may be required to remove equipment, parts, accessories or attachments which are
not maintained under this Agreement prior to Service by Tandem.

d. Designate an employee and an alternate who (i) will direct all requests for
information and maintenance to the Tandem NonStop Support Center (TNSC), (ii)
are familiar with and able to perform diagnostic tests for operation of the
Supported Products, and (iii) will provide Tandem with assistance and
information necessary to demonstrate, diagnose and correct malfunctions.
Customer will be available during all Service actions.

e. Install and maintain a direct, dedicated telephone line that does not pass
through a switch before connecting to the System enabling Tandem to access the
System to perform diagnostic tests.

f. Maintain the environment of and operate each Supported Product according to
instructions furnished by the manufacturer.

g. Notify Tandem in writing at least 30 days before moving any Supported Product
or undertaking any reconfiguration of the Hardware.

2.3  SOFTWARE

a. Tandem will provide error correction and maintenance Service on Current
Software pursuant to the Software Service Plan selected by Customer at the
applicable charges for the Software referenced on an Order.

b. All Software (i) on a System, (ii) on all Systems at a Site, or (iii) on all
Systems electronically networked together must be under the same Service Plan.

c. User documentation and related materials for use in connection with Current
Software will be provided by Tandem under a  Service Plan, if applicable, or may
be acquired by Customer at Tandem's then-current charge. In either event, user
documentation and related materials become part of the Software.

d. Software Tools are provided "as is". Tandem may provide limited support of
Software Tools on an as-available basis.

2.4  SERVICE PLAN TERM AND CANCELLATION

a. Except as set forth herein, Service will commence on the date specified in an
Order. Unless specifically excluded in writing by Customer, any Tandem product
sold or licensed to Customer by Tandem or Tandem's authorized resellers that is
added to a System or group of Systems networked together for which Tandem is
providing Service hereunder, will automatically become a Supported Product under
the applicable Service Plan then in effect for the remainder of the term. The
service charges for such additional Supported Products will begin on the date
that any applicable warranty period expires or on the date of installation if no
warranty applies.

b. Service will continue (i) for 12 months from the Service effective date, (ii)
for 24 months if Customer selects a Premier24 or Flex12 Service Plan with the
EnhancePlan feature,

                                                                Page 10 of 16
<PAGE>

or (iii) for the term selected by Customer in accordance with 2.4.c below (the
"Minimum Term").

c. Customer may elect to receive a term discount on applicable service charges
in consideration for committing to have Hardware and/or Software maintained
under this Agreement for a specified minimum term. Supported Products receiving
a term discount are subject to a cancellation charge of up to 6 times the
monthly service charge applicable to the canceled Supported Product if the
cumulative effect of the cancellation reduces the total service charges due for
all Supported Products during any 12 month period by more than 10% of the total
service charges paid for the preceding 12 month period. Cancellation charges
will not apply if cancellation is due to an upgrade of the Tandem products or if
Customer is discontinuing the line of business for which the Tandem products are
used.

d. After the Minimum Term (i) Tandem may, upon 90 days prior written notice,
amend or modify a Service Plan effective on the date stated in such notice, and
(ii) Customer or Tandem may, upon 60 days prior written notice, terminate
Service. Customer's obligation to pay further applicable Service charges will
cease with respect to any or all Supported Products on date of termination.
Hardware Service options described in the Service Plan Order Form may be
terminated by Tandem or Customer upon 30 days prior written notice.

2.5  PRODUCT ELIGIBILITY

If Tandem determines that any product not currently maintained by Tandem is
ineligible for Service, Customer may request that Tandem upgrade or repair such
item to an acceptable condition at Tandem's time-and-materials rates, or
Customer may take other corrective actions satisfactory to Tandem.

2.6  SERVICE LIMITATION

a. Tandem's Service obligations hereunder will not apply to any Supported
Product if adjustment, repair, or parts replacement is required because of (i)
accident, neglect, misuse, failure of electric power, failure of Customer to
provide appropriate environmental conditions, relocation of hardware, or causes
other than ordinary use, (ii) repair or alteration, or attempted repair or
alteration, of any Supported Product by Customer or others, (iii) failure caused
by a product for which Tandem is not responsible, (iv) Customer's connection of
another machine or device to Hardware which makes Service impractical or which
has caused damage to such Hardware, or (v) damage or destruction caused by
natural or man-made acts or disasters.

b. Services do not include cosmetic repairs, refurbishment, furnishing
consumables, supplies or accessories, making accessory changes, or attaching
additional devices.

c. Tandem will not be required to provide Service for any item of Hardware on
which neither the current nor the immediately preceding release of Software has
been installed.

3. MISCELLANEOUS

3.1  FORCE MAJEURE

Except for Customer's obligation to make payments hereunder, a party is not
liable for non-performance of this Agreement if the non-performance is caused by
events or conditions beyond that party's control and the party gives prompt
notice and makes all reasonable efforts to perform.

3.2  ASSIGNMENT; RIGHT TO SUBCONTRACT

Neither party may assign this Agreement or any of its rights or obligations
without prior written consent from the other party, except that Tandem may
assign its rights to payment. In addition, Tandem may use subcontractors to
perform Services hereunder.

3.3  ESCALATION

Each party agrees that any dispute between the parties relating to this
Agreement will first be submitted in writing to a designated senior executive of
both Tandem and Customer who will meet and confer in an effort to resolve such
dispute. Any decisions of the executives will be final and binding on the
parties. In the event the executives are unable to resolve any dispute within 30
days after submission to them, either party may refer any dispute to a court of
final jurisdiction or, if both parties agree, to arbitration.

3.4  RELATIONSHIP OF THE PARTIES

The parties are independent contractors under this Agreement and no other
relationship is intended, including a partnership, franchise, joint venture,
agency, employer/employee, or master/servant relationship. Neither party shall
act in a manner which expresses or implies a relationship other than that of
independent contractor, nor bind the other party.

3.5  NOTICES

Any notice required to be given under this Agreement must be given in writing
and will be effective on receipt when delivered to the party at the address
stated on the first page of this Agreement, or to such other address as such
party may designate by written notice in accordance with the provisions of this
Section.

If to Tandem:  Attn.: Contracts Manager, Americas Division

If to Customer:  Signatory to this Agreement or as otherwise designated by
Customer in writing.

3.6 ENTIRE AGREEMENT; GOVERNING LAW; MISCELLANEOUS

a. This Agreement is the parties' entire agreement relating to Services provided
hereunder. It supersedes all prior or contemporaneous oral or written
communications, proposals and representations with respect to its subject matter
and prevails over any conflicting or additional terms of any quote, Order,
acknowledgment or similar communications between the parties  during the term of
this Agreement. No modification to this Agreement will be binding, unless in
writing and signed by a duly authorized representative of each party.

b. This Agreement will be governed by and interpreted in accordance with the
laws of the State of California, excluding conflict of law rules and principles.

c. Any waiver of any provision of this Agreement, or a delay by either party in
the enforcement of any right hereunder, shall neither be construed as a
continuing waiver, nor create an  expectation of non-enforcement of that or any
other provision or right.

3.7  SURVIVAL

The terms and limitations, exclusions, and warranties contained in this
Agreement that by their sense and context are intended to survive the
performance thereof by either or both parties hereunder shall so survive the
completion of performance and termination of this Agreement, including without
limitation the confidentiality provisions and the making of any and all payments
due hereunder.

IN ACCORDANCE WITH SECTION 2.4 HEREIN, CUSTOMER HEREBY ELECTS A MINIMUM TERM FOR
SERVICE AS FOLLOWS:

     HARDWARE:   3 YEAR _______ OR 5 YEAR _______ TERM  DISCOUNT: _______%

                                                                Page 11 of 16
<PAGE>

     SOFTWARE: 3 YEAR _______ OR 5 YEAR _______ TERM  DISCOUNT: _______%

CUSTOMER HAS READ THIS AGREEMENT AND AGREES TO BE BOUND THEREBY.

Agreed to:                            Accepted by:


-----------------------------------   TANDEM COMPUTERS INCORPORATED
            (Customer)

By                                    By
  ---------------------------------     ----------------------------------


  ---------------------------------     ----------------------------------
            (Print Name)                            (Print Name)

Title                                 Title
     ------------------------------        -------------------------------

Date                                  Effective Date
     ------------------------------                 ----------------------

                                                             Page 12 of 16
<PAGE>

@Tandem
                 SERVICE PLAN ORDER FORM FOR HIMALAYA K SERIES

                                                   Agreement No.
                                                                ----------
Customer Name:                                     Tandem Quote No.
              ----------------------------------                   -------
                                                   Customer P.O. No.
                                                                    ------
Customer agrees to obtain and Tandem agrees to provide Service for Products at
the charges indicated on the attached quotation or purchase order under the
Service Plan selected herein, in accordance with the terms and conditions of the
above Agreement and the selected Service Plans and Options.

 NOTE: Not all Service Plans and Options are available for all Products or at
 all locations.

TANDEM SYSTEM NUMBER(S):  #            #   #          #   #
                           ------------ .   ---------- .   ------------

SOFTWARE SERVICE PLAN SELECTION:
-------------------------------

   BASIC PLANS:                    WARRANTY ENHANCEMENT: Yes  /  No (Circle One)

   _____ SELF SUPPORT              SERVICE COMMENCEMENT DATE:
   _____ SUPPORT CENTER ASSISTANCE _____ Date of Installation
   _____ CUSTOM AVAILABILITY       _____ Date of Warranty Expiration
                                   _____ Other _____/_____/_____

   OPTIONS: (available with Support Center Assistance only unless otherwise
             indicated)

   _____ MULTIPLE SYSTEM SUPPORT:
         Primary System(s):  #______________  #______________  #______________

   #______________

   _____ CRITICAL PROBLEM SUPPORT FOR WORKSTATION SOFTWARE (also available on
   Integrity Workstations under Self Support.)

HARDWARE SERVICE PLAN SELECTION:
-------------------------------

  BASIC PLANS:                                WARRANTY ENHANCEMENT:  Yes  /  No
                                                                    (Circle One)
   ______ PREMIER24: Price Cap ______ %       SERVICE COMMENCEMENT DATE:
   ______ FLEX12: ______ a.m. to ______ p.m.  _____ Date of Installation
   ______ BASE9                               _____ Date of Warranty Expiration
                                              _____ Other _____/_____/_____

  OPTIONS:

   ______ ACCELERATED RESPONSE: 2 hr. ___     _____ NO FAULT
                                4 hr. ---
   ______ BASE9 W/COOPERATIVE SERVICE         _____ OFF-HOURS PM/FCO
   ______ BUSINESS RECOVERY TOOL              _____ READY REVIEW
   ______ ENHANCEPLAN                         _____ REMOTE BYPASS
   ______ FLEX9 ____ a.m. to ____ p.m.        _____ TANDEM EXPRESS
   ______ OTHER (detail)_______________________________________________________

   PERIODIC SERVICE:                          EXTENDED COVERAGE:
   Schedule:                                  _____ hours per day  ______ a.m.
            -----------------------                             to ______ p.m.
                                              _____ Mon. thru Fri. _____  Sat.
                                                                   _____  Sun.

SERVICES AGREED TO BY:                     TITLE:
                      ------------------         ----------------------------
NAME (Please print):                       DATE:
                      ------------------         ----------------------------
-----------------------------------------------------------------------------
TANDEM INTERNAL USE ONLY:

Customer #               Discounts:   Site @       %   Volume @          %
          --------------                    -------            ---------
Term:   3   /   5 years @            %
                         -----------
Account Support Team (Sales and Service):
                                         ------------------------------------

                                                                Page 13 of 16
<PAGE>

                            SOFTWARE SERVICE PLANS

GENERAL PROVISIONS:

At any time during the Warranty Period of any Licensed Product, warranty Service
can be enhanced to the level of a Service Plan at the charges indicated in
Tandem's Price Guide. Corrective Service will be furnished via the Tandem
NonStop Support Center ("TNSC") and will include action to verify the existence
of a defect, determine the severity or impact of the defect, and determine
conditions under which the defect may recur. During such verification, Tandem
may request further information about the defect from Customer. After such
information is provided to enable Tandem to duplicate or verify the defect,
Tandem will, at its option:

 1. for a Critical Defect (as defined in the Agreement), commence action within
 the work-shift hours specified in the selected Service Plan using commercially
 reasonable efforts to provide a temporary solution of or workaround to the
 defect; or

 2. for a non-critical defect, commence action within the work-shift hours
 specified in the selected Service Plan to provide either the action set forth
 in 1. above or a statement that the defect will be corrected in a future
 Release; or

 3. provide a statement that the Licensed Product operates as described in
 Tandem's current user documentation or that the defect arises when such Product
 is used other than in a manner for which it was designed.

Prior to contacting Tandem for corrective Service for non-critical defects,
Customer is responsible for researching the Tandem database to determine if
there is an interim product modification ("IPM") that will address the problem.

Software media, Releases and updates to Releases, and documentation and updates
to documentation via CD are provided with each Service Plan.

SELF SUPPORT PLAN
-----------------

For a Critical Defect, Customer may request corrective Service via electronic
mail or fax to the TNSC between the hours of 8:00 a.m. to 5:00 p.m., Monday
through Friday, excluding national holidays. Except for workstation Software,
Tandem will commence action within 2 work-shift hours and provide on-site
assistance when deemed necessary by Tandem.

For a non-critical defect or any defect in workstation Software, Customer may
request Service via electronic mail to the TNSC between the hours of 8:00 a.m.
to 5:00 p.m., Monday through Friday, excluding national holidays.  Tandem will
commence action within 4 work-shift hours or within 8 work-shift hours for
workstation Software.

Problem support on a time and expense basis is not available under the Self
Support Plan.

SUPPORT CENTER ASSISTANCE PLAN  includes usage problem support through the TNSC
------------------------------
and:

For a Critical Defect, Customer may request corrective Service via phone or fax
to the TNSC 24 hours a day, 7 days a week, excluding national holidays. Except
for workstation Software, Tandem will generally commence action during the
initial contact and provide on-site assistance when deemed necessary by Tandem.

For a non-critical defect or any defect in workstation Software, Customer may
request Service via phone to the TNSC between the hours of 8:00 a.m. to 5:00
p.m., Monday through Friday, excluding national holidays. Tandem will generally
commence action during the initial contact or within 4 work-shift hours for
workstation Software.

A service planning meeting will be provided at least once annually between
Tandem and Customer to discuss the current Service Plans and Customer's future
requirements.

CUSTOM AVAILABILITY PLAN  provides a guaranteed limit on unscheduled outages,
------------------------
subject to a separate Custom Availability Attachment.

MULTIPLE SYSTEMS SUPPORT OPTION (AVAILABLE ONLY IF SUPPORT CENTER ASSISTANCE
PLAN IS SELECTED) is designed for Customers with more than one System. "Multiple
System" means a System for which the Customer elects to receive support through
a Primary System. "Primary System" means each System that is not a Multiple
System. Customer must identify each Primary System and its corresponding
Multiple Systems.

Multiple Systems Support will be provided under the following conditions:

 .  The Primary System must be approved by Tandem per current policy and
   supported under Support Center Assistance;

 .  All Licensed Products on a Multiple System(s) must be licensed on the Primary
   System;

 .  Service on a Multiple System will be furnished through the identified Primary
   System;

 .  The Customer will reproduce on the identified Primary System any Multiple
   System problem requiring support;

 .  Customer's key contact for a Primary System will be responsible for working
   all problems with Tandem;

 .  Tandem will provide Releases and Release updates to a Primary System only,
   and Customer will distribute such Releases and Release updates to each
   designated Multiple System; and

 .  Service requested directly on a Multiple System will be provided at Tandem's
   published time and expense rates.

Tandem retains the right to refuse to provide Multiple System Support in cases
where the above conditions are not met.

                                                                  Page 14 of 16
<PAGE>

                       HARDWARE SERVICE PLANS AND OPTIONS

GENERAL PROVISIONS:

At any time during the Warranty Period of an item of Hardware, warranty  Service
can be enhanced to the level of any Service Plan at the charges indicated in
Tandem's Price Guide. If Customer requests corrective Service and Tandem
determines that the malfunction is not related to an item of Maintained
Hardware, Tandem may charge Customer for Service on a time and expenses basis.
Under all Hardware Service Plans, Tandem will:

 . Provide corrective or scheduled preventive Service during the Principal Period
of Maintenance ("PPM") specified in the Plan.

 . Log all Service requests and furnish telephone and/or on-line diagnostic
services from the Tandem NonStop Support Center ("TNSC") 24 hours per day, 7
days per week.

 . Unless Customer is receiving Cooperative Service, furnish all labor, parts,
materials, and on-site Service during the PPM as necessary to keep Maintained
Hardware operating substantially in accordance with applicable published
specifications. Replacement parts will be new or equivalent of new in
performance and replaced parts become the property of Tandem.

 . Install any mandatory field change order required for the safety or proper
operation of Maintained Hardware except that, under Cooperative Service, the
parts necessary for a mandatory field change order will be provided to Customer
for installation.

 . Provide an annual (i) equipment inventory of Maintained Hardware, and (ii)
planning meeting to discuss the current Service Plans and Customer's future
requirements.

PREMIER24 PLAN  Under the Premier24 Plan, the PPM is 24 hours per day, 7 days
--------------
per week. Tandem will provide coverage on national holidays for corrective
Service only. For Systems located within 50 miles of a Tandem service location,
Tandem will schedule a Support Engineer ("SE") for arrival on Site within 2
hours, as needed. For Network Products and desktop hardware located within 50
miles of a Tandem service location, Tandem will schedule an SE for arrival on
Site within 4 hours, as needed. The Premier24 Plan includes the following
features at no additional charge:

CALL RESERVE provides up to 3 hardware related Service calls per System per
------------
contract year, for up to 4 hours each, to be used at the Customer's discretion.
Certain  custom services such as T-Site and T-Move are excluded.  The Service
calls may be used consecutively for longer on-site assistance.

ENHANCEPLAN is an optional feature available only with a 24-month initial term
-----------
that enhances the standard warranty Service on applicable Maintained Hardware,
except desktop hardware and Network Products, to the Service Plan that will
apply to such hardware after the Warranty Period expires.

NO FAULT extends Service for repair of damage to hardware for certain causes
--------
other than ordinary use of the hardware such as: Customer spilling substances or
objects in or onto hardware; Customer operational error; Customer errors in
hardware configuration; Customer improperly attaching or using non-Tandem-
supplied equipment or parts; interruption of communication lines; or
fluctuations or failure of electrical current except where the fluctuation or
failure is caused by lightning or other natural causes. This feature may be
canceled by either party upon 30 days prior written notice.

PRICE CAP limits any increase in the total list Basic Monthly Maintenance Charge
---------
("BMMC") for a System to not more than a predetermined annual percentage
following the initial 12 month term. The applicable percentage for the first 12
month term is designated herein and may be adjusted by Tandem after each 12
month term.

READY REVIEW provides Tandem's "Guide to Business Recovery Planning" and annual
------------
consultation with Customer to discuss disaster preparedness.

TANDEM EXPRESS is an optional feature which provides access to databases for
--------------
support, marketing, Alliance and education information from a compact disc or
remotely from an online server.

FLEX12 PLAN  Under the Flex12 Plan, the PPM is 12 continuous hours per day as
-----------
selected by Customer between 6:00 a.m. and 9:00 p.m., local time, Monday through
Friday, excluding national holidays. At Customer request, Tandem will work
through a critical problem after PPM at no additional charge. Within 50 miles of
a Tandem Service location, Tandem will schedule an SE for arrival on Site within
4 PPM hours, as needed, for Systems and within 8 PPM hours, as needed, for
desktop hardware. The Flex12 Plan also includes Comprehensive Business Recovery
Tool, EnhancePlan and Tandem Express (as described under Premier24 Plan above).

BASE9 PLAN  Under the Base9 Plan, the PPM is from 8:00 a.m. to 5:00 p.m., local
----------
time, Monday through Friday, excluding national holidays. For hardware located
within 50 miles of a Tandem service location, Tandem will schedule an SE for
arrival on Site within 8 PPM hours, as needed.

SERVICE OPTIONS stated below may be purchased separately if not included in the
selected Plan:

ACCELERATED RESPONSE provides arrival on Site within 2 PPM hours for Network
--------------------
Products under the Premier24 Plan, within 2 PPM hours for the Flex12 Plan and
within 4 PPM hours for the Base9 Plan. Desktop hardware is excluded unless
otherwise specified.

COOPERATIVE SERVICE requires Customer to contact the TNSC via phone or system-
-------------------
to-system link for assistance in problem diagnosis. Tandem specialists will
guide Customer's focal point in problem diagnosis and, when necessary, ship
replacement parts, priority delivery, for Customer replacement. Customer is
responsible for (i) packaging hardware and parts to avoid damage in transit by
using the same packaging material in which the replacement unit was received by
Customer, (ii) shipping replaced hardware and parts to Tandem within 72 hours of
receipt of the replacement unit or part; and (iii) paying the return shipping
charge to Tandem's designated return facility and bearing the risk of loss until
the hardware or parts are received by Tandem. If Tandem does not receive the
replaced hardware and parts within 72 hours of receipt of the replacement unit
or part, Customer agrees to pay  the then current list price for the hardware or
parts.

EXTENDED COVERAGE extends the PPM to any time periods currently offered by
Tandem.

FLEX9 provides alternate PPM coverage for Base9 Plan customers beginning between
6 a.m. and 9 a.m..

HOLIDAY COVERAGE provides Service coverage during the PPM on all national
holidays.
<PAGE>

NO FAULT OR READY REVIEW as described under the Premier24 Plan.

OFF HOURS PM/FCO provides preventive Service and mandatory FCO installations
outside the PPM at a mutually agreed upon time excluding national holidays.

PERIODIC SERVICE provides a fixed schedule for Service based on the number of
units covered. The SE will repair units at a central site designated by Customer
rather than during the response time provided under the Service Plan.

REMOTE BYPASS provides that Tandem will dispatch an SE upon receipt of
Customer's Service request at the TNSC without first diagnosing the problem.
This option is not available for desktop hardware.