Document:

exv10w1

 

EXHIBIT 10.1

[Name]

[Address]

Dear [First Name],

     As you are aware, CoSine Communications, Inc. (the “Company”) is exploring
strategic alternatives, including a possible merger, sale and/or dissolution of
the Company. We would appreciate your continued services during the Transition
Period (as defined below), and offer you certain compensation incentives in
exchange for your continued employment and agreement to execute a general
release of claims, as explained further below:

Employment Terms

	(a)	 	The Transition Period shall be from August 1, 2004 until the earlier of
(i) a Qualifying Termination, or (ii) December 31, 2004 (the “Transition
Period”).

	 	 	A “Qualifying Termination” means a termination by the Company of your
employment due to a job elimination or restructuring caused by a merger,
acquisition, divestiture, Company or unit shutdown, liquidation,
dissolution, departmental consolidation, technological change or similar
business reason (as determined by the compensation committee (the
“Committee”) of the Company’s board of directors in its sole discretion).
Notwithstanding the foregoing, a Qualifying Termination will not occur:
(i) if you do not enter into such non-compete, non-solicitation, or
non-disparagement agreement as the Committee may determine is necessary,
or fails to comply with any other requirement imposed by the Committee in
its sole discretion; (ii) if you are terminated for reasons described
above and your are offered employment by the Company or a successor in
interest to the Company at a location not more than thirty (30) miles from
your previous position, and the offered position has equal or greater base
pay and base hours as the employee’s position before the termination (as
determined by the Committee in its sole discretion), unless you accept
such employment and the Company or successor in interest to the Company
terminates your employment without cause within six months of such
acceptance; (iii) if you are terminated and are offered and accepts a
position providing services for the Company or for a successor in interest
to the Company; (iv) if you are terminated and are offered and becomes an
independent contractor with the Company or a successor in interest to the
Company, unless you are terminated as such an independent contractor
within six months of becoming such an independent contractor; (v) if you
are terminated for reasons related to your job performance or conduct (as
determined by the Committee in its sole discretion); or (f) if your die,
become disabled, retire or voluntarily resign your employment.

	(b)	 	During the Transition Period you will continue to be an at-will employee
of Company. Your employment relationship may be terminated at any time,
for any reason, with or without cause, with or without notice, at your
option or Company’s option.

	(c)	 	In addition to your normal base salary, you shall accrue a retention
bonus at a rate equal to 100% of your current hourly base salary (the
“Retention Bonus”) for every Company business day during the Transition
Period that you remain employed with the Company and are not on an unpaid
leave of absence or unpaid time off. Payment of the Retention Bonus, less
applicable withholdings, shall be made to you on a regular ongoing basis
in accordance with the regular payroll cycle. Upon the expiration of the
Transition Period, you shall also be entitled to receive a lump sum
payment (even if you are continued to be employed by the Company
thereafter) equal to (i) your annual base salary minus (ii) the aggregate
Retention Bonus actually paid to you during the Transition Period (the
“Severance Payment”). The Severance Payment will be subject to
applicable withholdings.

	(d)	 	If prior to the end of the Transition Period, you employment with the
Company is terminated as a result of a non-Qualifying Termination, you
will not receive any portion of the Severance Payment.

 

 

	(e)	 	If your employment with the Company is terminated at any time as a result
of a Qualifying Termination, you will also be deemed to have elected COBRA
coverage under the Company’s health plan, and the Company shall pay your
first twelve (12) months of COBRA premiums. These twelve (12) months of
coverage shall be counted against your total COBRA eligibility period.

	(f)	 	The retention and severance benefits contained herein are in lieu of and
supercede any benefits you may be entitled to under the Company’s
Severance Pay Plan.

	(g)	 	As further consideration for payment to you of the Retention Bonus and
Severance Payment, you agree to execute a general release of any and all
claims against Company upon the termination of your employment.

	(h)	 	Nothing in this Agreement is intended to create any rights to employment
or employee benefits except as expressly set forth in this Agreement.
This Agreement represents the entire agreement and understanding between
you and the Company concerning your transitional employment with the
Company. This Agreement may only be amended in writing by mutual
agreement of you and the Company. You agree that any and all
controversies, claims, or disputes with anyone (including the Company and
any employee, officer, director, shareholder or benefit plan of the
Company in their capacity as such or otherwise) arising out of, relating
to, or resulting from this agreement shall be subject to binding
arbitration under the arbitration rules set forth in California Code of
Civil Procedure Section 1280 through 1294.2, including Section 1283.05,
and pursuant to California law.

To accept the Agreement, please date and sign this letter and return it to the
Company. (An extra copy for your files is enclosed).

We appreciate your contribution in anticipation of and during the Transition
Period.

			
	Sincerely,
	 	I have read, understand and agree
to the terms set forth above.

CoSine Communications, Inc.                                                                             

By:                                                                             

Name:

Title:exv10w2

 

EXHIBIT 10.2

The “Statement of Work” (SOW) is part of the “Consulting Agreement” document
where all global contractual terms & conditions — which are common for each
project with this subcontractor — are determined. The Statement of Work is
determining all project specific items.

Statement of Work contract for IPSX-Software-Development – Phase II

entered under

the Software Support Outsourcing Agreement 001

Between

Cosine Communications, Inc Delaware Corporation organised under the laws of
USA, having its registered office at 1200 Bridge Parkway, CA 94065, herein
represented by Sachin Desai, Director, Engineering

And

Wipro Limited, a company organised under the laws of India, having its
registered office Dodda Kannelli, Sarjapur Road, Bangalore.

Where as on
May 30th 2003 CoSine Communications Inc (“CoSine”) and Wipro
Limited

(“Wipro”) have entered into a Software Support Outsourcing Agreement
(“Agreement”), where as under this Agreement, CoSine Communications and Wipro
are willing to conclude a Statement of Work contract, for the execution of a
project to be performed by Wipro, and the results of which have to be delivered
to CoSine Communications. It has been agreed that Wipro will perform the
project described below.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	1. INTRODUCTION
	 	 	1	 
	1.1 Product Description
	 	 	1	 
	1.2 Acronyms and naming conventions
	 	 	2	 
	1.2.1 Abbreviations
	 	 	2	 
	1.3 Contact persons
	 	 	3	 
	1.4 References
	 	 	3	 
	2. Project Description
	 	 	4	 
	2.1 Requirement References
	 	 	4	 
	2.2 Activity descriptions, deliverables and planning
	 	 	4	 
	2.2.1 Activities
	 	 	4	 
	2.2.2 Training
	 	 	4	 
	2.2.3 CoSine Deliverables
	 	 	4	 
	2.2.4 Wipro Deliverables
	 	 	5	 
	2.3 Resources
	 	 	5	 
	2.3.1 Wipro provided Resources
	 	 	5	 
	2.3.2 CoSine provided Resources
	 	 	5	 
	2.3.3 Additional resources to be provided by CoSine
	 	 	5	 
	2.3.4 Project Environment (to be provided by COSINE)
	 	 	6	 
	3. PROGRAM MANAGEMENT
	 	 	6	 
	3.1 Project Organisation
	 	 	6	 
	3.2 Reporting and monitoring
	 	 	6	 
	3.3 Customer escalation management
	 	 	7	 
	3.4 Patch fixes / Patch release management
	 	 	7	 
	3.5 Testing processes
	 	 	7	 
	3.6 Risk management
	 	 	7	 
	3.7 Best efforts
	 	 	7	 
	3.8 Escalation Management
	 	 	7	 
	4. FINANCIAL CONDITIONS
	 	 	8	 
	4.1 Payment plan
	 	 	8	 
	5. INTELLECTUAL PROPERTY
	 	 	10	 
	6. Others
	 	 	10	 
	7. SIGN-OFF PAGE
	 	 	11	 

 

 

1. INTRODUCTION

From the edge of the Service Provider network, CoSine’s IPSX Service Processing
Switches deliver scalable customized IP services that generate new revenue
streams while minimizing capital and operational costs.

CoSine’s IPSX Family marries switching, routing and computing capabilities with
a flexible operating system to deliver scalable customized IP services at multi
gigabit line rates from the edge of a Service Provider’s (SP’s) network.

The IPSX Family includes two switches: the 26-slot IPSX 9500 Service Processing
Switch and the 8-slot IPSX 3500 Service Processing Switch. Both IPSX switches
can be configured with any combination of CoSine’s dual-slot IP Service
Generators (IPSGs) to deliver CoSine’s full IP Services Suite from Virtual
Private Networks (VPNs) and firewall to URL filtering and Network Address
Translation (NAT).

CoSine has been working with Wipro since June 2003, where Wipro is contributing
to the sustenance and enhancement of IPSX software. Refer SoW version 1.1.

This statement of work (SOW) describes the details of ownership of TAC and QA
activities of IPSX 3500 & IPSX 9500 from Oct 2004- Dec 2005. There will be a
team of 6 people dedicated for TAC/QA activities during this period. From July
–Dec of 2005 6 people from the existing engineering team will move to the
TAC/QA team, making 12 team members between July 2005 – Dec 2005. The
engineering support between Oct 04 – June 05 is covered as a part of the
earlier SOW signed between Cosine and Wipro dated June 2004.

The scope of the project involves handling of TAC (24*7) and QA activities of
releases which are currently deployed in the field including bond, pasta and
saboo. TAC activities include – handling of customer calls/queries, reporting
technical problems, reproducing technical problems, releasing fixes/patch
builds to customers & RMA activities support. CoSine would be responsible for
the actual hardware (blades, cards etc.) deployment to the customers. QA
activities include – preparing test plans, black box testing of IPSX software
for patch releases to customers, reporting technical problems and verifying
fixes in the patch releases.

Hardware support activities are out of scope of CIDC & would continue to be
handled by Cosine staff. Wipro would not be responsible for any failure of
deliverables to the customers due to failure of hardware support. The migration
support of customers from IPSX to other platforms is also out of scope CIDC.
The customer reported problems in the following areas would not be handled by
CIDC.

	 	•	 	Drivers
	 
	 	•	 	All Hardware related support
	 
	 	•	 	HTTP proxy
	 
	 	•	 	Microcode
	 
	 	•	 	PFE
	 
	 	•	 	Safenet software & CoSine VPN client
	 
	 	•	 	Ingage CoSine Invision Software

Product Description

IPSX software can be classified into different domains.

	 	•	 	IPNOS-This is an OS infrastructure used by above modules. IPNOS
provides infrastructure for distributed processing.
	 
	 	•	 	Layer 2 – This includes support for various layer 2 technologies viz.
ATM, Frame Relay, PPP, L2TP, PPTP, PPPoE, PPPoEOATM. Layer 2 modules
include support for Bandwidth Manager, Radius client, DS3 port mapping
and virtual bridging.
	 
	 	•	 	Layer 3- This includes IP routing – RIP, ISIS, OSPF, BGP, MPLS
Control – RSVP, LDP, IP/MPLS forwarding, L3 VPN, SPF/NAT, Firewall
	 
	 	•	 	Security – This includes IKE, IPSec

1

 

	 	•	 	CLI and SNMP- The scope is OLD CLI and NEW CLI
	 
	 	•	 	Invision- Used to configure the physical elements on the network,
including IPSX switches, service blades and IPSG Service Generators and
to configure the service elements that make up the IP service for each
subscriber network.

Currently different software releases are in the field.

Major releases for maintenance are

	 	•	 	Bond
	 
	 	•	 	Pasta
	 
	 	•	 	Saboo

Bond and Pasta are very widely deployed release in the field. Saboo is
relatively new version, which is not yet widely deployed in the field.

Acronyms and naming conventions

Abbreviations

	 	 	 
	AMC

	 	Annual Maintenance Contract
	 
	 	 
	BDM

	 	Business Development Manager
	 
	 	 
	CIDC

	 	CoSine India Development Centre
	 
	 	 
	CQ

	 	ClearQuest
	 
	 	 
	ERD

	 	Engineering Requirement Document
	 
	 	 
	IPSG

	 	IP Service Generator
	 
	 	 
	IPSM

	 	IP Service Management blade
	 
	 	 
	PL

	 	Project Leader (Team Leader)
	 
	 	 
	PM

	 	Project Manager
	 
	 	 
	QA

	 	Quality Assurance
	 
	 	 
	RWC

	 	Redwood City (USA) – CoSine office
	 
	 	 
	TAC

	 	Technical Assistance Centre
	 
	 	 
	Veloci Q

	 	Quality Systems Manual (Wipro)

2

 

Contact persons

CoSine

Sachin Desai

Director — Engineering

Tel: ++1 650-637-2458

Email: sachin.desai@cosincom.com

WIPRO

Ramadurai Ramalingam.

Technical Manager

Tel: ++91/80/51195880

E-Mail: ramadurai.ram@wipro.com

Shivaji Hogale

Project Manager

Tel: ++++91/80/28520408 ext-81017

E-mail: shivaji.hogale@wipro.com

Timothy Burke

Senior Business Manager

Tel: +1 408-655-9316

E-mail: timothy.burke@wipro.com

References

	1.	 	Software Support Outsourcing agreement between CoSine and Wipro dated 30th
May 2003.
	 
	2.	 	OT SOW between CoSine and Wipro dated 30th July 2003
	 
	3.	 	Addendum to the Statement of Work contract for CoSine entered under the
Consulting Agreement
	 
	4.	 	SoW between CoSine and Wipro in June 2004 version 1.1

3

 

Project Description

Requirement References

Customer escalations would be recorded using bug tracking system & this would
form input for TAC, QA & sustenance activities. This includes records for
defects found at end-customer site and defects found in CoSine TAC/QA lab
during patch release testing.

Activity descriptions, deliverables and planning

Activities

In general following activities are indicated. Wipro shall contribute towards

	 	 	 	 	 
	Phase
	 	Activities
	 	Remarks

	TAC

	 	Handling customer issues
	 	Handling customer issues/queries reported by phone or email, 24x7 includes:
	 
	 	 	 	 
	

	 	 	 	-     logging the
issues/updates/analysis in a
“trouble ticketing” system/db
	 
	 	 	 	 
	

	 	 	 	-     providing troubleshooting
commands/scripts/strategies or
workarounds to customers
	 
	 	 	 	 
	

	 	 	 	-     providing regular updates to
customers
	 
	 	 	 	 
	

	 	 	 	-     reproducing technical problems
	 
	 	 	 	 
	

	 	 	 	-     verifying and releasing
fixes/patches to customers
including writing releases
notes and analysis documents
	 
	 	 	 	 
	QA

	 	Testing
	 	Preparing test plans, black box
testing of IPSX software for
patch releases to customers,
reporting technical problems
and verifying fixes in the
patch releases
	 
	 	 	 	 
	CM / IS team

	 	Build responsibilities
	 	CM team would be responsible for building patch releases.

Training

CoSine should provide adequate training for TAC & QA team members in all the
areas to TAC & QA activities self dependent & fully operational at CIDC. Any
other new training requirements, if any, will be decided after mutual
discussions. Wipro shall not be responsible for any non performance arising due
to lack of training from Cosine to Wipro.

CoSine Deliverables

	 	•	 	Infrastructure required for TAC & QA operations including IPSX
switches, third party hardware/Software tools & equipments for building,
testing & bug tracking of patch release to the customers
	 
	 	•	 	Licenses & AMC for software / hardware, third party tools to be used
in CIDC & RWC. The cost towards hardware / software licenses would be
borne by CoSine
	 
	 	•	 	Training on TAC, QA & Sustenance activities
	 
	 	•	 	TOI for CIDC engineering team ( IPSec client, MPLS VPNs, SPF, NAT,
Firewall & other untouched features)
	 
	 	•	 	Hardware builds & test environment support for CIDC operations from CoSine end
	 
	 	•	 	Transferring & ensuring build & test environment to CIDC is fully operational

4

 

	 	•	 	Transferring & ensuring build & test environment to CIDC is fully operational
	 
	 	•	 	Additional requirements that are mutually agreed upon

Wipro Deliverables

	 	•	 	Handling customer issues / queries pertaining to software releases made to the customer.
	 
	 	•	 	Testing of patch releases to be given to the customer
	 
	 	•	 	As this contract is between CoSine & Wipro, Wipro will not be
responsible for any SLA issues that may arise with CoSine end customers
(service providers).
	 
	 	•	 	All bug fixes will be done on a best effort basis and Wipro would
not have any committed SLAs as a part of this program
	 
	 	•	 	Handling customer issues/queries as per the activities listed in section 2.2.1
	 
	 	•	 	RMA activities support

Resources

Wipro provided Resources

	 	 	 	 	 
	Resource
	 	Description
	 	Availability

	Human

	 	Six member TAC & QA team. One
consultant on ClearCase for
three months( 3 months
Offshore)
	 	Available
	 
	 	 	 	 
	Office setup

	 	Office space and desktop PCs
for each team member
	 	Available
	 
	 	 	 	 
	Lab

	 	Air Conditioned Lab space
	 	Additional Lab planning
for TAC & QA operations
to be done.
	 
	 	 	 	 
	VPN Setup

	 	Wipro will provide the Cosine
ODC access to Cosine
engineer. Cosine is OK with
employees to access the ODC
network remotely given that
the Cosine IP can be misused
as this is being access from
out side of the Wipro or
Cosine office premise
	 	CoSine Hardware engineer
can access CoSine ODC
(CIDC) network from
Wipro Mountain view
office in US. Seating
space will be charged to
Cosine

CoSine provided Resources

As part of the existing cooperation, Cosine has provided the required
infrastructure to carry out the sustenance activities. Wipro would ensure that
the resources would be optimally used and shared for TAC/QA activities on need
basis. The additional resources specific for the successful execution of TAC/QA
activities is provided in the subsequent section.

Additional resources to be provided by CoSine

Additional resources required in future can be discussed & mutually agreed
upon.

Cosine is also responsible for providing licenses & AMC for software /
hardware, third part tools to be used in CIDC & RWC

5

 

Project Environment (to be provided by COSINE)

QA Environment

IPSX Switches

Third party Hardware/Software Tools & Test equipments.

IPNOS software:

Invision Software;

Systems for execution of tests.

TAC Environment

IPSX Switches

Third party routers and switches

Bug tracking system

Call centre.

 

			
	PROGRAM MANAGEMENT
	 	Project Organisation

Reporting and monitoring

The PM and CIDC manager will monitor the project on a continuous basis and
provide a Project Status report to CoSine once a week. There will be a weekly
teleconference (if required) call to clarify any issues reported in status
report or otherwise. The status report will summarise the following details:

	 	•	 	Bug handling report
	 
	 	•	 	Any issues or risks requiring attention of CoSine

Any changes in the status report shall be mutually agreed.

6

 

Customer escalation management

TAC team would be responsible for handling customer escalation. Cosine
representative may be involved as when required. The priority of all the bugs
would be decided by TAC lead based on customer requirements.

Patch fixes / Patch release management

TAC team lead would be responsible for delivering patch fixes to the customer.

Testing processes

QA lead would define the schedule for testing of patch releases. QA team would
follow the existing QA processes.

Risk management

Any risks which will be identified as a part of this project will be jointly
reviewed and agreed by both Wipro and CoSine.

Best efforts

Wipro acknowledges and understands that Client’s end customers are dependent
upon Wipro to provide the services outlines in Section 2.2. Wipro and CoSine
agree to work together in good faith and to use best efforts to ensure that the
services are provided in conformance with this project plan. In the event that
CoSine’s end customers request to contract with Wipro directly for support
services described herein, CoSine’s and Wipro will meet and discuss whether
such requests can be accommodated. Any accommodation must be approved by both
parties. Cosine has communicated to its end customers that there will not be an
escalation point provided from Cosine in this SOW, and that best efforts will
be made from Wipro without the support of Cosine representation.

Escalation Management

This section defines the escalation process to be followed both by the CIDC
team and CoSine in case of need. If there is a need for onsite travel by a
Wipro engineer to the end customer location, it will be discussed and agreed
with on between Wipro and end customer. The cost for this onsite travel would
be paid for in advance by the end customer.
For any query from customers of CoSine, following is the escalation path.

	 	 	 	 	 	 	 
	Escalation
	 	Name
	 	Role
	 	E-Mail/Contact

	Level 0

	 	Santosh Jha
	 	TAC Lead
	 	Santosh.jha@wipro.com

Wipro Technologies,

Electronics city,

Bangalore-560100

(Mobile number:9845689924)
	 
	 	 	 	 	 	 
	Level 1

	 	Shivaji Hogale
	 	Project Manager
	 	Shivaji.hogale@wipro.com

Wipro Technologies,

Electronics city,

Bangalore-560100

(Mobile number:9845854309)
	 
	 	 	 	 	 	 
	Level 2

	 	Ramadurai Ram
	 	Technical Manager
	 	Ramdurai.ram@wipro.com

Wipro Technologies,

Electronics city,

Bangalore-560100

(Mobile number:9845162668)
	 
	 	 	 	 	 	 
	Level 3

	 	Davis chackunny
	 	Group Head
	 	Davis.chackunny@wipro.com

Wipro Technologies,

Electronics city,

Bangalore-560100

(Mobile number:9845027246)
	 
	 	 	 	 	 	 
	Level 4

	 	Subbu Pochinappeddi
	 	Vice President
	 	Subbu.pochinapeddi@wipro.com

Tel: 91-80-5732631

Level 5- A representative will be made available from Cosine on an as needed basis.

7

 

FINANCIAL CONDITIONS

Payment plan

Project Cost:

The total cost of the project is for the duration 1st October 2004 – 31st
December 2005 is USD 1087884 excluding AMC, Lab expansion charges & billing for
existing 23 people from sustenance team till June 2005 .

Entire Expenses for setting up TAC / QA operations & infrastructure would be
borne by Cosine.

The projected costs includes the following costs

	 	•	 	Manpower cost for TAC/QA support for 6 people from Oct 2004 – Dec 2005
	 
	 	•	 	Manpower cost for a 6 people sustenance team from July 2005- Dec
2005. The manpower cost for the 23 people sustenance team between
Oct2004-June2005 is covered as part of the Sustenance SOW
	 
	 	•	 	Lab expansion cost
	 
	 	•	 	Infrastructure costs for TAC and QA support

The project cost break is given below:

Monthly Recurring cost:

	 	 	 	 	 
	Offshore Services

	 	 	777150	 
	TOTAL — USD

	 	 	777150	 

Single Time Infrastructure investment cost:

	 	 	 	 	 
	AMC for the servers
	 	 	10000	 
	Lab Expansion for TAC & QA support including Cisco switch, benches,
racks/ Codex shipment
	 	 	20400	 
	Lab running cost(5% of Lab expansion cost)
	 	 	1020	 
	TAC- PBX, equipments setup & outgoing call expenses
	 	 	38700	 
	Expenses on additional Dell dimension machines (#20) purchase
	 	 	26000	 
	Expenses on additional Sun server machines(pSOS Build servers
server) (#2) purchase
	 	 	30000	 
	Backup tapes & Hard drive
	 	 	3300	 
	TOTAL — USD
	 	 	129420	 

8

 

Total project Cost:

	 	 	 	 	 
	Offshore Services
	 	 	777150	 
	AMC for the servers
	 	 	10000	 
	Lab Expansion for TAC & QA support including cisco switch, benches,
racks/ Codex shipment
	 	 	20400	 
	–Lab running cost(5% of Lab expansion cost)
	 	 	1020	 
	TAC- PBX, equipments setup & outgoing call expenses
	 	 	38700	 
	Expenses on additional Dell dimension machines (#20) purchase
	 	 	26000	 
	Expenses on additional Sun server machines(pSOS Build servers
server) (#2) purchase
	 	 	30000	 
	Backup tapes & Hard drive
	 	 	3300	 
	TOTAL — USD
	 	 	906570	 

Note1: The TAC & QA people will be billed 1.5 times the normal billing rate.

Note2: Outgoing call made by TAC / QA team will be charged on actual. Outgoing
call would be approximately around 2000 USD per month.

Note3: AMC for all additional servers will be charged once all the servers are
setup.

Note 4: The existing SOW and this TAC/QA SOW invoices will be combined and
submitted quarterly starting Oct 2004.

     Assumption. Expenses mentioned in that above table are based on the
information/requirements available as on date. It may vary based on future
additional requirements. Once the project value as mentioned in the SOW is
exhausted, Wipro shall further provide any services only upon receipt of
approval for increased value from Cosine.

     Contingency:

It is envisaged that there could be additional expenditure to reasons beyond
the control of Wipro. These expenditures shall be discussed and mutually agreed
upon prior to their incurrence. These expenditures have a bearing on the
project cost, if and when they occur. Hence, a contingency amount (20%) may be
required if such additional expenditures are encountered. This is estimated to
be USD 181314. The total cost of the project including contingency is USD
1087884. The break-up is given in the table below:

	 	 	 
	Contingency

	 	181314 USD
	Total Project Cost (with contingency)

	 	1087884 USD

     The parties agree that the contingency balance shall be separately
maintained and treated as a deposit, and any expenditure that is applied
against the contingency shall be mutually agreed upon between the parties. At
the end of the project term, any unused portion of the contingency shall be
promptly refunded in full to Client.

The Client acknowledges and agrees that the services fees for the services in
excess of the estimated workload for the project (estimated workload is
understood to be approximately

9

 

forty-five (45) hours per person assigned to the project per week)shall be
calculated on the basis of the following rates:

USD 4100 (Till December 2004) & USD 4500 (from Jan 2005 to Dec 2005) for
software engineer per month for services performed out of India. For services
to be performed in USA for the software engineer per month would be USD 10,000
and 2000 USD per travel towards travel fare & Visa fees.

WIPRO will begin billing Cosine in October 2004, quarterly for both the
existing SOW and this TAC/QA SOW through December of 2005. The combined invoice
will be payable within in Net 15 days. Wipro acknowledges that the above
represents payment in advance by CoSine for services to be rendered by Wipro
during a specified service term. CoSine shall be entitled to a pro rata refund
of any unearned service fees from Wipro for any portion of the paid-up service
term during which Wipro does not actually provide the services. Any non receipt
of payment will be treated as a breach and Wipro has an option to terminate
immediately without any notice on the happening of such an event. In any case
of conflict between parties, this SOW will govern the agreement between Wipro
and Cosine.

     TAC / QA People Resource Plan:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Oct 04
	 	Nov 04
	 	Dec 04
	 	Jan 05
	 	Feb 05
	 	Mar 05
	 	Apr 05
	 	May 05
	 	Jun 05
	 	Jul 05
	 	Aug 05
	 	Sep 05
	 	Oct 05
	 	Nov 05
	 	Dec 05
	 	Total

	Offshore
	 	 	7	 	 	 	7	 	 	 	7	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	93	 
	Onsite
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 

     CIDC Engineering People Resource Plan:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Jul 05
	 	Aug 05
	 	Sep 05
	 	Oct 05
	 	Nov 05
	 	Dec 05
	 	Total

	Offshore
	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	36	 
	Onsite
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 

     INTELLECTUAL PROPERTY

All developed modules are the Intellectual Property of CoSine

     Others

Wipro shall be only obligated to provide services under this SOW upon the
following:

	a)	 	Completion of Effective training and knowledge transfer from Cosine
and Wipro.
	 
	b)	 	Set up of the Lab at Wipro premises by Cosine.
	 
	c)	 	Cosine ensuring that Cosine’s equipments are properly functioning and
adequately maintained.
	 
	d)	 	Any instructions /information requested by Wipro are processed and
confirmed by dedicated personnel from Cosine.

10

 

     SIGN-OFF PAGE

In witness whereof, the parties have caused this Statement of Work to be
executed by their duly authorised representatives, and entered into as of the
effective date set forth upon final execution by the last signatory hereto,

	 	 	 
	Wipro Limited

	 	CoSine Communications
	 
	 	 
	By: /s/
Tim Burke

	 	By: /s/ Terry Gibson
	Senior Business Manager

	 	CFO
	October 15, 2004
	 	October 14, 2004

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]