Document:

<PAGE>   1
                         Nitsuko UK Reseller Agreement

                                                                    EXHIBIT 10.3

                               RESELLER AGREEMENT

         THIS Agreement is made the 9th day of August 1999

         BETWEEN:

         (1)      Nitsuko UK Limited, with a registered office of "Lyndhurst", 1
                  Cranmer Street, Long Eaton, Nottingham NG1O 1NJ ("Nitsuko")

         and

         (2)      Hugo International Ltd, 6 Waterside Drive, Langley, Slough,
                  Berkshire, SL3 6EZ

                  ("HUGO INT.")

         WHEREAS:

                  (A)      Nitsuko is the UK subsidiary of the Nitsuko
                           Corporation of Kawasaki, Japan.

                  (B)      Nitsuko is supplying keysystem and keysystem hybrid
                           Products through a reseller network into the UK
                           market.

                  (C)      Nitsuko wishes to appoint HUGO INT. as one of its
                           Exclusive Resellers (Telecommunication Specialists)
                           to market its Products to end-users.

         THE PARTIES AGREE as follows:

         1.       DEFINITIONS

                  "The Product(s)" means the DXE 24/32/96 and DXE 328 Hybrid
                  Keysystems & DXE 16 & 200 Dect Systems. This list may be added
                  to as required.

                                      -1-
<PAGE>   2
                         Nitsuko UK Reseller Agreement

         2.       GRANT OF RIGHTS

         2.1      Nitsuko grants HUGO INT. the right to market and distribute
                  the Product in the UK throughout the term of this Agreement.
                  This will also include the right to use, lease, sell, install
                  and maintain the Product.

         3.       NITSUKO'S OBLIGATIONS/DUTIES

         3.1      Nitsuko will only provide equipment that meets the
                  requirements of the UK Approval Authorities.

         3.2      Nitsuko will provide free of charge, reasonable technical
                  backup support, sales and technical training.

         3.3      If HUGO INT. wishes to maintain the Product Nitsuko will
                  provide Maintenance Spares at the agreed discount off the list
                  price.

         3.4      Out of Box failures will be replaced by Nitsuko at no charge.
                  Nitsuko will pay for return carriage.

         3.5      Nitsuko will maintain an appropriately staffed and adequately
                  trained engineering and technical support group in the UK.

         3.6      Nitsuko warrants its Products for 13 months from the invoice
                  date.

         3.7      Nitsuko will allow a maximum outstanding credit facility
                  of pound sterling 25,000. (SubjeCt to Credit Clearance)

         3.8      Nitsuko will provide suitable publicity and promotional
                  support material to HUGO LNT. This shall be up to a value of
                  2% of HUGO INT. Purchases, an initial pound sterling 2,000
                  will be made available from this fund for an initial start up
                  marketing campaign, this

         3.9      Nitsuko's transfer price to HUGO INT. will be based on the
                  following:

-        Keysystems - 45% off List Price.

-        Dect Systems - 40% off List Price.

                                      -2-
<PAGE>   3
                         Nitsuko UK Reseller Agreement

         3.10     Nitsuko will keep sales inventory of the Product in the UK. It
                  is planned to provide a three-day turnaround for orders, with
                  next day pick up for urgent items.

         4.       HUGO INT.'S OBLIGATIONS/DUTIES

         4.1      HUGO INT. shall use its reasonable endeavours to promote and
                  sell the Product.

         4.2      HUGO INT. has the option to provide maintenance support for
                  the Product.

         4.3      In order to assist in ensuring delivery from stock HUGO INT.
                  will be required to provide a 3-Month ahead sales forecast.
                  Nitsuko will use this information as the basis for its stock
                  ordering from Nitsuko Corporation.

         4.4      Payment is to be received by Nitsuko 40 day's following the
                  date of invoice. Agreed credit limits can only be amended on
                  agreement of the Managing Director of Nitsuko.

         5.       ORDERING AND DELIVERY

         5.1      Orders for the Products placed by HUGO INT. will be on
                  officially headed notepaper and must contain a valid order
                  number. Ordering will be subject to the terms and conditions
                  of this Agreement. For convenience HUGO INT. may use its
                  purchase documentation and Nitsuko may use its normal
                  sales/invoicing documentation but the terms and conditions of
                  this Agreement shall take precedence over any other Terms.

         5.2      Any order placed by HUGO INT. will be confirmed within 3
                  Working Days.

         6.       ACCEPTANCE/INSPECTION

         6.1      It is the responsibility of HUGO INT. to decide what
                  acceptance checks are required. All shortages or failures must
                  be notified in writing to Nitsuko within 10 Days of delivery.
                  Failure to meet this requirement may lead to Nitsuko
                  disclaiming responsibility.

                                      -3-
<PAGE>   4
                         Nitsuko UK Reseller Agreement

         7.       PRICES AND PAYMENT

         7.1      Prices for the Products are contained in the Official List
                  Price List. The transfer price to HUGO INT. will be based on
                  deducting from the List Price the Agreed Discount as stated in
                  Clause 3.9.

         7.2      Payment is to be received by Nitsuko 40 days following the
                  date of invoice. It is Nitsuko policy to suspend deliveries to
                  resellers who exceed their credit terms without prior
                  agreement.

         7.3      Title to the equipment ordered passes on clearance of funds.

         8.       WARRANTIES

         8.1      Nitsuko warrants that the Products will be new, of
                  merchantable quality, and that they will conform to their
                  description.

         8.2      Nitsuko warrants that the Products will be free from defects
                  in design, materials and workmanship for a period of thirteen
                  (13) months from the date of delivery.

         8.3      Nitsuko undertakes to replace or repair defective items at his
                  expense (including freight and insurance charges).

         8.5      In no event shall Nitsuko be liable for any incidental special
                  or consequential damages including loss of profits, arising
                  out of or in connection with this Agreement, the Product, or
                  replacement parts furnished hereunder.

         9.       INDEMNITIES

                  Nitsuko shall indemnify HUGO INT. and its customers against:

                  (i)      Loss or damage to property; or

                  (ii)     Death or personal injury to persons;

                                      -4-
<PAGE>   5
                         Nitsuko UK Reseller Agreement

                           caused by any Product supplied to HUGO INT., or acts
                           or omissions of Nitsuko, its employees or
                           contractors. In the event of damage to property,
                           Nitsuko's liability shall be limited to the
                           replacement of the Product originally supplied.

         10.      TERM

                  The initial term of this Agreement shall be one (1) year. The
                  Agreement will be renewed by an exchange of letters on the
                  anniversary date. The Agreement can be terminated by either
                  party giving not less than two (3) months notice in writing.

         11.      TERMINATION

         11.1     This Agreement may be terminated by either party with
                  immediate effect in the event that the other goes into
                  liquidation or receivership or is unable to continue trading.

         11.2     This Agreement may also be terminated by either party in the
                  event that the other party commits a material breach of this
                  Agreement which has not been remedied within thirty (30) days
                  of notice having been given in writing to the defaulting party
                  stating the nature of such breach and that it is intended to
                  terminate this Agreement.

         12.      FORCE MAJEURE

                  Neither party shall be liable to the other for any delay or
                  failure to perform its obligations under this Agreement
                  resulting from war, armed conflict, civil disturbance, Act of
                  God, fire, explosion, accident, flood, industrial dispute or
                  any regulation, rule or act of or authorised by any Government
                  or Government agency or any other cause beyond the reasonable
                  control of the party in question.

         13.      ASSIGNMENT

                  Neither party shall assign or transfer its obligations under
                  this Agreement without the other party's prior written
                  approval. Nitsuko shall have the right to assign its
                  obligations under this Agreement to a subsidiary or affiliated
                  company.

                                      -5-
<PAGE>   6
                         Nitsuko UK Reseller Agreement

         14.      INDEPENDENT CONTRACTORS

                  Each party shall operate as an independent contractor and
                  neither party shall have the authority to bind the other,
                  contract on the other's behalf, or to create any obligation to
                  be performed by the other.

         15.      CONFIDENTIALITY

         15.1     Both during the term of this Agreement and for a period of two
                  (2) years following its expiry each party agrees to receive
                  and hold in confidence and use and cause to be used only for
                  the purposes permitted by this Agreement all information which
                  is disclosed to it by the other party.

         16.      ENTIRE AGREEMENT

                  This Agreement constitutes the entire Agreement between the
                  parties and shall supersede all prior representations,
                  agreements, undertakings and commitments between the parties.

         17.      MODIFICATIONS/AMENDMENTS

                  No variation or modification of this Agreement shall be valid
                  unless in writing and signed by authorised representatives of
                  the both parties.

         18.      NOTICES

                           The address for service of notices shall be:

                           For HUGO INT.:            Hugo International Ltd,
                                                     6 Waterside Drive
                                                     Langley
                                                     Slough
                                                     Berkshire
                                                     SL3 6EZ

                           Attention:                Mr. David Foden

                                      -6-
<PAGE>   7
                         Nitsuko UK Reseller Agreement

                           For Nitsuko:              Nitsuko UK Limited,
                                                     75. Swingbridge Road,
                                                     Loughborough,
                                                     Leics LEll 5JB

                           Attention:                Mr Douglas Lawes

         IN WITNESS WHEREOF the parties hereto have caused this Agreement to be
duly signed on their behalf.

                           /s/ Douglas Lawes 13/8/99
                           NITSUKO UK LIMITED
                           Managing Director

                          HUGO INTERNATIONAL COMMUNICATIONS LIMITED
                          Managing Director
                          /s/ David Foden

                                        INCLUDE ATTACHED LETTER AS CLARIFICATION

                                      -7-
<PAGE>   8
                         Nitsuko UK Reseller Agreement

Nitsuko UK Ltd.
75 Swingbridge Road
Loughborough
Leicestershire LE11 5JB

To:             David Foden                      Fax            01753-543131

Company         Hugo International Ltd

From:           Andrew Cooper                    Fax         (0) 1509 610206

Date            11th August 99                   Tel            01509 643114

Subject         Contract Clarifications          Ref

Pages           Including this page              1

Fax Message:

Dear David,

Further to our telephone conversation yesterday I have pleasure in clarifying
the following points;

-        MARKETING FUND

Nitsuko will fund marketing expenditure to the value of 2% of ALL sales on an
on-going basis. From this fund we are prepared to forward pound sterling 2,000
as an initial start up marketing payment for your launch material etc. The fund
is not capped in any way and based upon the levels of business discussed at our
recent meeting would soon become substantial.

-        START UP PACKAGES

Due to the size and nature of the agreement between Nitsuko and Dee Tee Wee this
enables us to offer these substantial reductions on starter kits, your
purchasing discount of 40% is not affected by these reductions. Therefore the
cost of such packages to you would be less your 40% discount, giving you the
opportunity to sell at increased margins should you so wish.

I trust I have been able to answer your questions, however, should you need any
further clarification please do not hesitate to contact me.

Yours Sincerely

Andrew Cooper
Sales Director
Nitsuko UK Limited

          Tel: 07000NITSUKO (648785) or 01509 643100 Fax: 01509 610206
                      Technical Support Tel: 01509 643111

                Email: sales@nitsuko.co.uk Web: www.nitsuko.co.uk

                                      -8-<PAGE>   1
                                                                    EXHIBIT 10.4

SIEMENS                             PURCHASE ORDER                        Page 1

Vendor Address                                  Please Deliver to:
HUGO INTERNATIONAL LIMITED                      SIEMENS COMMUNICATIONS LIMITED

6 WATERSIDE DRIVE LANGLEY BUS.PAR               TURNELLS MILL LANE
LANGLEY                                         WELLINGBOROUGH

SLOUGH                                          NN8 2RB
SL3 6EZ

VENDOR NUMBER:                    311319        Please Invoice To:
PURCHASE ORDER NUMBER:            7000016928    SIEMENS COMMUNICATIONS LIMITED
                                                    BRICKHILL STREET

DATE:                             05.07.1999    WILLEN LAKE
BUYER:                            JUNE RAYMOND  MILTON KEYNES
BUYER TEL:                        01933 444466  MK15 ODJ
SIEMENS ORDER NUMBER:                           ATTN A/C PAYABLE

                                                VAT REGISTRATION No. GB479985260

ENQUIRIES TO R. LIVINGSTON 01933 444184

DEAR SIRS,

WE HEREBY ASK YOU TO DELIVER THE FOLLOWING GOODS IN ACCORDANCE WITH OUR STANDARD
CONDITIONS OF PURCHASE.

WE REQUIRE AN ORDER ACKNOWLEDGMENT FOR THE FOLLOWING ITEMS:

<TABLE>
<CAPTION>
Item    Material Quantity    Description                   Delivery Date            Value GBP
                             Price GBP Per Unit

<S>     <C>                  <C>                           <C>                   <C>
10                           SUPPLY MAINTENANCE                 06.07.1999            120,000.00

         1 each                 120,000.00   1 each
</TABLE>

            SUPPLY MAINTENANCE FOR MARKS AND SPENCER SITES
            AGREEMENT NUMBER 8009694
            PERIOD 1/7/99 - 30/6/2000
            TO BE CHARGED ON A QUARTERLY BASIS

                                                   TOTAL ORDER VALUE: 120,000.00

GBP

DELIVERY TERMS:          001 PAID DELIVERED
PAYMENT TERMS:          Within 30 days Due net

PLEASE QUOTE OUR PURCHASE ORDER NUMBER, LINE ITEM NUMBER AND MATERIAL NUMBER ON
ALL INVOICES, ADVICE NOTES AND CORRESPONDENCE.

SIGNED FOR THE COMPANY /s/ T.J. Ball 7/7/99
                       --------------------
SUBJECT TO TERMS AND CONDITIONS PRINTED OVERLEAF
IMPORTANT PLEASE ACKNOWLEDGE RECEIPT OF THIS ORDER AND CONFIRM PRICE AND
DELIVERY
<PAGE>   2
                                                                    EXHIBIT 10.4

                     AGREEMENT FOR THE PROVISION OF SERVICE

         An Agreement between Siemens Communications Limited acting as a
management company for Siemens plc on whose behalf it enters into this Agreement
(Siemens) with principal places of business at:

Turnells Mill Lane                    and                   Brickhill Street
Wellingborough                                              Willen Lake
Northants                                                   Milton Keynes
NN8 2RB                                                     MK15 0DJ

Tel:  (01933) 225000                                        Tel:  (01908) 855000

and the Supplier whose company name is:                  HUGO INTERNATIONAL
                                                         6 WATERSIDE DRIVE
                                                         LANGLEY BUSINESS PARK
                                                         LANGLEY
                                                         SLOUGH
                                                         BERKS
                                                         SL3 6EZ

WHEREAS

A.       Siemens Communications Limited acting as a management company for
         Siemens plc on whose behalf it enters into this Agreement (Siemens) has
         entered into a contract with Marks and Spencer Plc of 47 Baker Street
         London W1A 1DN (the "Customer") for the maintenance of various
         equipment (the "Prime Contract") which includes the Equipment detailed
         in Schedule 1 to this Agreement.

B.       Siemens wishes to sub-contract part of its maintenance obligations to
         the Supplier.

C.       The Supplier is willing to act as sub-contractor to Siemens.

NOW THEREFORE THE PARTIES HEREBY ENTER INTO THIS AGREEMENT ON THE TERMS AND
CONDITIONS SET OUT HEREIN AND IN THE SCHEDULES HERETO:

Signed for and on behalf               Signed by:
     of Hugo International:

/s/ D.W. Foden
-------------------------
                                       /s/ P.D. Johnson
                                       ----------------------------------
                                       Authorized Signatory of
                                       Siemens Communications Limited
                                       a management company for
                                       Siemens plc

Name:      D.W. Foden                  Name:    P. D. Johnson
          -------------------------         ----------------------------------

Position:  Managing Director           Position: Commercial Manager
          -------------------------              ----------------------------

Date:       21/6/99                    Date:      12/07/99
     ------------------------------         ------------------------------

<PAGE>   3
                  INDEX

<TABLE>
<CAPTION>
<S>                   <C>     <C>
            Clause    1       Definitions
                      2       Scope
                      3       Relationship of the Parties
                      4       Duration
                      5       Operating Procedure
                      6       Change of Service
                      7       Charges and Payment
                      8       Licence
                      9       The Supplier's Obligations
                      10      The Supplier's Further Assurance
                      11      The Supplier's Liability
                      12      Siemens Liability
                      13      Insurance
                      14      Termination
                      15      Confidentiality and Intellectual Property Rights
                      16      Assignment
                      17      Sub-contractors
                      18      Year 2000
                      19      General Provisions

                              Schedule  1      The Equipment

                                        2      Service Level Agreement

                                        3      Charges and Duration
</TABLE>
<PAGE>   4
1.       DEFINITIONS

         For the purposes of this Agreement the following words or expressions
         shall have the meaning set out against them.

         (a)      "Agreement" means this agreement, its Appendices and any
                  documentation expressly incorporated herein, including any
                  amendments agreed between the parties in writing.

         (b)      "Schedule" means a schedule to this Agreement and shall
                  include any subsequent amendment, replacement or re-issue
                  thereof.

         (c)      "Call" means a call to the Supplier made in accordance with
                  Schedule 2.

         (d)      "Charges" means the charges detailed in Schedule 3.

         (e)      "Commencement Date" means the 1st July 1999.

         (f)      "Customer" means Marks and Spencer Plc of 47 Baker Street,
                  London, W1A 1DN.

         (g)      "Customer's Premises" means the Customer's premises in the
                  United Kingdom and the Republic of Ireland.

         (h)      "Equipment" means the equipment identified in Schedule 1.

         (i)      "Maintenance Cover Time" means the period of time that the
                  Equipment is covered by the Service as detailed in Schedule 2.

         (j)      "Service" means the services to be provided under this
                  Agreement.

2.       SCOPE

         (a)      The Supplier warrants that it shall provide the Service and
                  perform such other duties which are referred to in this
                  Agreement in respect of the Equipment as the Siemens
                  sub-contractor under the Prime Contract in accordance with
                  this Agreement and in consideration of the Charges.

         (b)      Any Service carried out by the Supplier which is not in
                  accordance with this Agreement, unless Siemens' prior
                  agreement in writing is obtained, shall be made good by the
                  Supplier at its own expense.

         (c)      The Service to be carried out shall be preventative and
                  corrective maintenance of the Equipment in accordance with the
                  Service Level Agreement set out in Schedule 2.
<PAGE>   5
         (d)      Siemens expressly reserves the right to:

                  (i)      add, delete or amend items of equipment to the scope
                           of this Agreement upon which the Service will be
                           performed; and

                  (ii)     add to, delete or amend the Customer's Premises
                           within the United Kingdom and the Republic of Ireland
                           in which Equipment is held and upon which the Service
                           is performed.

                  subject to payment of Charges in accordance with Schedule 3
                  or, if no Charge is provided for, a charge to be agreed by the
                  parties and paid in accordance with Schedule 3, and subject
                  further to the Supplier being given reasonable written notice
                  of any such additions, deletions or amendments.

         (e)      Where the Service provides for the replacement of items
                  (including parts) of Equipment then when replacement items are
                  fitted, these items become the property of the Customer.

         (f)      Save as provided in this Clause, the Supplier shall bear all
                  costs or expenses incurred in the provision of the Service,
                  including but not limited to:

                  (i)      the cost of obtaining and storing spare parts; and

                  (ii)     the costs associated with the Re-delivery of
                           Equipment (including packaging, transit and insurance
                           of Equipment until Re-delivery in an adequate sum
                           with a reputable insurance company). All risk of loss
                           and damage during such period shall be borne by the
                           Supplier.

         (g)      The Supplier shall make available for inspection the
                  Certificate of Insurance referred to above and evidence of
                  payment of premiums at the request of Siemens.

3.       RELATIONSHIP OF THE PARTIES

         (a)      Notwithstanding any degree of supervision exercised by Siemens
                  over the Supplier's personnel from time to time assigned to
                  provide the Service and perform the Supplier's other
                  obligations under this Agreement, such persons at all times
                  shall be deemed to be the employees of the Supplier and in no
                  circumstances shall the relationship of employer and employee
                  be deemed to arise between Siemens and the Supplier's
                  personnel whether by reason of the Transfer of Undertaking
                  (Protection of Employment) Regulations 1981 (as amended) or
                  otherwise. The Supplier shall indemnify and hold harmless
                  Siemens against any cost, claim or liability that Siemens may
                  suffer in respect of the Supplier's personnel or former
                  personnel who claim to have been transferred under the
                  Transfer of Undertaking (Protection of Employment) Regulations
                  1981 (as amended).

                                      -2-
<PAGE>   6
         (b)      Neither party is the agent of the other and neither party
                  shall have the authority to bind the other or to make any
                  contract in the name of the other party without that party's
                  prior written consent.

4.       DURATION

         This Agreement shall continue for the minimum term specified in
         Schedule 3, and shall renew automatically on an annual basis
         thereafter. Either party may terminate this Agreement on expiry of the
         minimum term or on expiry of any subsequent full year of service,
         subject to at least 90 days written notice to the other party, or in
         accordance with Clause 15.

5.       OPERATING PROCEDURE

         (a)      On initial arrival and final departure all employees, agents
                  or sub-contractors of the Supplier must book in and out of the
                  Customer's Premises in accordance with the Customer's security
                  requirements. The Supplier shall not use the Customer Premises
                  for any purpose other than that of carrying out the Service.

         (b)      The Supplier shall prevent all work people including those
                  employed by subcontractors from trespassing on any part of the
                  Customer's Premises which is not necessary for carrying out
                  the Service.

         (c)      The Supplier shall at its own cost provide, maintain and
                  remove all access equipment. The Supplier must ensure that
                  access equipment is safe, clean and secure for the due
                  performance of the Service.

         (d)      The Supplier shall be responsible for carefully cleaning all
                  areas where the Service has been provided upon completion, and
                  leaving the Customer's Premises in the same state as on
                  arrival.

         (e)      The Supplier shall obtain the approval of the Customer for the
                  proposed siting of materials, temporary rubbish, deposits and
                  temporary buildings.

         (f)      The Supplier shall undertake not to damage, interfere with or
                  vexatiously delay completion of work by other suppliers within
                  any of the Customer's Premises.

         (g)      All Services must be undertaken in compliance with the Health
                  and Safety at Work Act and the Customer's health and safety
                  requirements.

         (h)      No notice board will be permitted to be displayed externally
                  on the Customer's Premises.

                                      -3-
<PAGE>   7
6.       CHANGE OF SERVICE

         The Charges may be adjusted in the event that the scope of service
         provided for the Systems is changed by agreement, or any changes are
         made to the requirements of or on the instruction or request of, the
         Government, a regulatory authority, an emergency services organisation
         or any other competent administrative authority affecting the provision
         of the Service, or the System is no longer a current release, or the
         System is extended by the addition of further hardware or software. In
         any such event, the Charges may be amended immediately in accordance
         with the Supplier's then current charges.

7.       CHARGES AND PAYMENT

         (a)      Siemens shall pay the Charges for the Service in accordance
                  with Schedule 3 from the Commencement Date.

         (b)      Notwithstanding anything in this Agreement to the contrary,
                  payments due to the Supplier shall be payable by Siemens only
                  when such payments are paid to Siemens by the Customer under
                  the Prime Contract.

         (c)      The Charges are exclusive of all national and local taxes and
                  duties, which shall be added in accordance with prevailing
                  legislation.

         (d)      The Charges will be reviewed annually by the Supplier and
                  Siemens between September and December. Any changes shall be
                  agreed by the end of December of that year and shall become
                  effective from 1st July of the year following the review.

         (e)      The Supplier shall be deemed to have fully informed itself as
                  to the specification and general condition of the Equipment
                  and no increase in the Charges shall be permitted on the
                  grounds of misrepresentation of any matter relating to the
                  Equipment, the condition or specification of the Equipment or
                  the Customer's Premises proving to be different from that
                  anticipated.

         (f)      The Supplier shall pay rates of wages and observe hours and
                  conditions of labour not less favourable than the general
                  level of wages, hours and conditions for the trade or industry
                  in the district where the Service is carried out.

         (g)      The Supplier's Charges shall be deemed to include (but not be
                  limited to):

                  (i)      direct labour costs including all allowances, bonuses
                           and costs associated with fringe benefits, holidays
                           and sickness leave and all costs of advertising,
                           recruitment, interviews, introduction, obtaining and
                           renewal of qualifications, shift working, standby and
                           other pre- and post- employment expenses unless
                           otherwise stated herein;

                  (ii)     all costs of all taxes (with the exception of VAT)
                           and contributions raised by law, trade union contract
                           or regulations relating to or increased by the

                                      -4-
<PAGE>   8
                           payroll of the Supplier (for example workman's
                           compensation and old age benefits, welfare funds,
                           pensions, annuities and disability insurance);

                  (iii)    all costs of standard employee benefits of the
                           Supplier (for example sick leave with pay, retirement
                           funds, health and life assurance, any bonus
                           programmes, profits sharing schemes and share
                           purchase schemes);

                  (iv)     all costs of transport and travel to and from
                           locations at or from which Services shall be
                           provided;

                  (v)      other direct and indirect costs of the Supplier
                           including all contributions to overhead,
                           administration and profit;

                  (vi)     all costs associated with the provision, maintenance
                           and update of the Supplier's training obligations
                           necessary to perform the Services;

                  (vii)    all costs associated with the provision of personnel
                           supervision associated with this Agreement;

                  (viii)   all costs associated with the provision, maintenance
                           and replacement of the Supplier's hardware, software,
                           equipment, tools, consumables and all other equipment
                           associated with the provision of the Services;

                  (ix)     all costs associated with providing the Services as
                           set out within this Agreement, Monday to Friday,
                           09.00 to 17.00, statutory and public holidays
                           excluded;

                  (x)      all costs associated with fluctuations in labour
                           rates in respect of employees, sub-contractors or
                           Trade Unions negotiations;

                  (xi)     all costs associated with the provision of the
                           Supplier's personnel suitably trained and qualified
                           for the provision of the Services;

                  (xii)    all costs associated with the delivery and collection
                           of all equipment, materials and consumables;

                  (xiii)   any other costs for items not specifically mentioned
                           in or not specifically excluded from this Agreement.

8.       LICENCE

         Siemens is hereby licensed to use and to sub-licence any material
         supplied by the Supplier in order to perform the Prime Contract.

                                      -5-
<PAGE>   9
9.       THE SUPPLIER'S OBLIGATIONS

         (a)      The standard of the Service shall be in accordance with this
                  Agreement and to the extent that the standard of the Service
                  has not been specified in this Agreement, the Supplier shall
                  use good quality materials, techniques and standards and
                  provide the Service with the care, skill and diligence
                  required in accordance with best industry practice.

         (b)      Materials and workmanship in all respects shall conform to the
                  higher of any current British or EU standard or Code of
                  Practice that can be properly applied and/or any reasonable
                  standard agreed by the Customer and Siemens.

         (c)      If requested, the Supplier shall submit details of its policy
                  on quality assurance.

         (d)      As necessary to meet its obligations under this Agreement and
                  at its own expense the Supplier shall:

                  (i)      provide sufficient test equipment to the levels
                           recommended by the Equipment manufacturer;

                  (ii)     provide sufficient numbers of trained and qualified
                           field service engineers;

                  (iii)    maintain sufficient levels of dedicated spare parts
                           (including component parts, cables and whole units)
                           and ensure that any spare parts used in the Service
                           are compatible with existing components;

                  (iv)     use its reasonable endeavours to ensure that
                           engineers deployed in any country to provide the
                           Service are fluent in English and any other local
                           languages.

         (e)      The Supplier shall comply with the Customer's site procedures
                  and restrictions including but not limited to:

                  (i)      Equipment or materials held off site shall be
                           labelled in accordance with the Customer's
                           requirements;

                  (ii)     The Supplier shall keep full and accurate accounts
                           for the Service and shall maintain proper records of
                           wages paid and all invoices and other records of
                           materials and plant used and receipts for payments to
                           Subcontractors and make them available for inspection
                           on demand by Siemens for a minimum period of two
                           years after the date of final invoice.

                  (iii)    The Supplier shall check all invoices submitted to it
                           by sub-contractors and manufacturers to ensure that
                           the calculations therein and the content thereof are
                           correct before including the amount of such invoices
                           in any application to Siemens for payment.

                                      -6-
<PAGE>   10
                  (iv)     Any excess payments made by Siemens which could
                           reasonably have been prevented by such a check in
                           Clause 9(e)(iii) shall be reimbursed to Siemens.

                  (v)      When any sub-contractor is to be reimbursed on a
                           prime cost basis, the Supplier shall arrange for the
                           sub-contractor to maintain similar records for
                           inspection and checking by Siemens.

                  (vi)     The Supplier shall pass to Siemens the benefit of
                           discounts offered by its suppliers, manufacturers and
                           sub-contractors.

                  (vii)    The Supplier shall offer Siemens detailed financial
                           and operational proposals for savings resulting from
                           reduced problem rates for agreement between Siemens
                           and the Supplier.

                  (viii)   The Supplier shall not use the Customer's Premises
                           for any purpose other than that of carrying out the
                           Service.

                  (ix)     The Supplier shall comply with the Customer's
                           reasonable requirements regarding access for the
                           delivery and removal of goods and materials.

                  (x)      Save where otherwise provided in this Agreement, the
                           Supplier is responsible for taking delivery,
                           handling, storing and distributing all equipment,
                           materials and consumables necessary for carrying out
                           the Service.

                  (xi)     The Supplier shall not store oxyacetylene, propane,
                           gas cylinders or the like on the Customer's Premises.

                  (xii)    The Supplier is continually to keep the Customer's
                           Premises in the area of its work clean during the
                           progress of the Service. The Supplier shall remove
                           all dirt, rubbish, protective casings and superfluous
                           materials including that of its sub-contractors as
                           the Service proceeds and at completion. Rubbish shall
                           be disposed of in accordance with the Customer's
                           requirements and in accordance with statutes and
                           regulations for waste management.

                  (xiii)   The Supplier shall keep to a minimum the amount of
                           noise made on the Customer's Premises. Generators,
                           compressors and other noisy plant shall be muffled at
                           all times by means of silencers, screens and the
                           like.

                  (xiv)    Smoking within the curtilage of the Customer's
                           Premises, with the exception of designated smoking
                           areas, is strictly forbidden. The Customer or Siemens
                           may order offenders to leave the Customer's Premises
                           and not return without Siemens' permission.

                                      -7-
<PAGE>   11
                  (xv)     The Customer's catering facilities are not to be used
                           by the Supplier without obtaining the Customer's
                           permission. Any such permission granted is to be on
                           the conditions as stated by the Customer. Siemens or
                           the Customer may order offenders to leave the
                           Customer's Premises,

                  (xvi)    The Customer shall provide all electricity for the
                           Service carried out within the Customer's Premises.
                           The Supplier must acquaint itself with the
                           availability of electricity on the Customer's
                           Premises.

                  (xvii)   Materials obtained from the Customer's Premises shall
                           remain the property of the Customer or Siemens and
                           shall be placed in storage or disposed of in
                           accordance with Siemens' instructions.

                  (xviii)  Vehicles owned by the Supplier or its employees,
                           agents, or subcontractors may only be parked on the
                           Customer's Premises with the prior permission of the
                           Customer.

                  (xix)    The Customer shall be entitled to search and inspect
                           the contents of all the Supplier's vehicles, staff
                           and operatives visiting the Customer's Premises. The
                           Supplier shall bring this requirement to the
                           attention of its employees and all sub-contractors
                           who attend at the Customer's Premises.

                  (xx)     The Customer shall be entitled to search the bags or
                           other luggage of each operative at any time,.

                  (xxi)    Siemens reserves the right to make inspections upon
                           reasonable notice and carry out tests to ascertain
                           that the Supplier's obligations under this Agreement
                           are being fulfilled. Such inspections may be
                           conducted by Siemens or its agent. Any deficiencies
                           noted shall be corrected within 30 (thirty) days, or
                           such time that it is agreed with Siemens, of
                           receiving written notification or exceptionally, to
                           an agreed programme of Service, at the Supplier's
                           expense.

                  (xxii)   The Supplier's staff must provide proof of identity
                           at all times which must show the Supplier's Company
                           name, date of issue, the individuals name, signature
                           and passport size photograph.

                  (xxiii)  The Supplier's staff will conform with Siemens'
                           standards of dress and code of conduct at all times
                           while on the Customer's Premises.

                  (xxiv)   Prior to leaving the Customer's Premises after
                           completing a fix, the Supplier shall demonstrate to
                           the Customer or its agents that the relevant
                           Equipment is functioning properly;

                  (xxv)    In the event that further Calls have been logged in
                           respect of one of the Customer's Premises by the time
                           of arrival of the Supplier's engineer at

                                      -8-
<PAGE>   12
                           that premises, the engineer shall resolve all such
                           Calls within one visit, where practicable.

                  (xxvi)   The Suppler shall ensure that its engineers arrive at
                           the Customer for the removal of any of its employees
                           or agents from its Premises for reasonable cause,
                           including without Limitation, incompetence,
                           interference with the Customer's operations or
                           failure to observe safety standards, laws, codes or
                           regulations.

         (f)      By agreement of Marks & Spencer Voice services the Supplier
                  shall prepare a comprehensive inventory of all equipment of
                  the general type shown in Schedule 1 which is situated at or
                  used in the Customer's Premises (including details of
                  equipment type, model number, quantity and present condition)
                  and shall provide the same to Siemens within 6 months of the
                  Commencement Date. Thereafter, the Supplier shall use its best
                  endeavours to ensure that such inventory is kept up-to-date
                  and that copies of the same are provided to Siemens at least
                  once every 6 months during the term of this Agreement.

         (g)      The Supplier shall immediately inform Siemens if it becomes
                  aware that Equipment is being misused or abused by any person.

10.      THE SUPPLIER'S FURTHER ASSURANCE

         The Supplier agrees to execute all other documents, to provide all
         necessary assistance and to do all other things as may be required from
         time to time by Siemens under or pursuant to this Agreement

11.      THE SUPPLIER'S LIABILITY

         (a)      Subject to the limits set out in this Clause, the Supplier
                  agrees to indemnify Siemens against any damages, loss, costs,
                  claims, expenditure or other liability arising out of or
                  related to:

                  (i)      injury, or death to any person; or

                  (ii)     damage to property

                  resulting from any defect in workmanship, negligence or
                  willful misconduct of the Supplier or its employees, agents or
                  sub-contractors.

         (b)      For clarity and subject to the limits set out in this Clause,
                  the Supplier agrees to indemnify Siemens against any damages,
                  loss, costs, claims, expenditure or other liability arising
                  from any breach of the Prime Contract which results from any
                  failure by the Supplier to perform its obligations in
                  accordance with the Agreement.

                                      -9-
<PAGE>   13
         (c)      In case the Supplier by any act or omission referred to in
                  Sub-Clause 11(a) causes injury to or the death of any person,
                  then the Supplier's liability for such injury or death shall
                  be unlimited,

         (d)      In all other cases the Suppliers liability In respect of any
                  one event or series of connected events Is limited to pound
                  sterling 1,000,000 (one million pounds) provided that in no
                  event will the Supplier be liable for any indirect or
                  consequential loss or loss of business, profits, revenue or
                  anticipated savings.

         (e)      The Supplier shall not be liable for the failure to provide
                  the Service if the failure results from any force majeure
                  event (whether happening In the United Kingdom or elsewhere),
                  such as, but not limited to, Act of God, refusal of licence or
                  other Government act, fire, explosion, accident, lightning
                  damage, electromagnetic interference, radio interference,
                  industrial dispute, failure on the part of the Supplier's
                  supplier/s. or any cause beyond the Supplier's reasonable
                  control

12.      SIEMENS' LIABILITY

         (a)      In case Siemens by its negligence causes injury to or the
                  death of any person, then Siemens' liability for such injury
                  or death shall be unlimited.

         (b)      In all other cases, Siemens' liability in respect of any one
                  event or series of connected events shall not exceed the sum
                  of pound sterling 100,000 (one hundred thousand pounds),
                  provided that in no event will Siemens be liable for any
                  indirect or consequential loss or loss of business, profits,
                  revenue or anticipated savings.

13.      INSURANCE

         (a)      Without prejudice to its liability to indemnify Siemens, the
                  Supplier shall put in place and maintain such insurance with a
                  reputable insurance company as is necessary to cover the
                  potential liabilities set out in Clauses 2 and 12.

         (b)      The Supplier shall provide Siemens with a copy of its policy
                  and satisfactory evidence of the payment of premiums up to the
                  date of the request, if so requested by Siemens.

14.      TERMINATION

         (a)      If the Prime Contract is terminated or suspended for any
                  reason then Siemens will be entitled to terminate or to
                  suspend the Agreement, provided that Siemens gives notice of
                  termination or suspension to the Supplier equal to the period
                  of notice given by the Customer to Siemens, less one day.

         (b)      If either party is in breach of any obligation under the
                  Agreement and does not remedy that breach within 28 (twenty
                  eight) days after receipt of written notice

                                      -10-
<PAGE>   14
                  detailing the breach, the innocent party may immediately
                  terminate this Agreement or, at that party's option, suspend
                  performance of its obligations under the Agreement until the
                  breach is remedied.

         (c)      If either party becomes insolvent, commits an act of
                  bankruptcy or goes or is put into liquidation (other than
                  solely for amalgamation or reconstruction) or if a receiver is
                  appointed over all or any part of the party's business or
                  assets or if an administration order is made in respect of it,
                  then the other party may regard any such circumstance as
                  grounds for immediately terminating this Agreement without
                  notice.

         (d)      Without prejudice to any other provision of this Agreement,
                  this Agreement may be terminated by Siemens giving 90 days
                  prior written notice to the Supplier without incurring any
                  penalty for such termination.

         (e)      Should any party acquire or attempt to acquire an interest in
                  the shareholding of the Supplier or any associated company
                  actively involved in this Agreement which would represent a
                  substantial change in the shareholding of the Supplier, such
                  event shall be immediately notified to Siemens. Siemens may,
                  by reasonable notice, determine the employment of the Supplier
                  under this Agreement should such an acquisition be completed,
                  provided that such notice shall not be given unreasonably or
                  vexatiously.

         (f)      In the event of termination, Siemens total financial liability
                  shall be limited to any portion of the Charges which has
                  accrued prior to notification of breach.

         (g)      If termination is due to default by the Supplier, then Siemens
                  shall within 5 (five) days of termination be granted access to
                  spares, diagnostic materials and programs, technical advice
                  and training in order that Siemens may fulfil its obligations
                  under the Prime Contract.

         (h)      At the termination of this Agreement the Supplier shall
                  promptly return to Siemens all documents, records, media or
                  other property belonging to Siemens and all records containing
                  secret and/or confidential information of Siemens or of the
                  Customer which are in its possession and issued in connection
                  with this Agreement, together with all copies thereof.

15.      CONFIDENTIALITY AND INTELLECTUAL PROPERTY RIGHTS

         (a)      The parties agree not to disclose to any third party (other
                  than for the purposes of performing this Agreement), any
                  secret or confidential information or method of working
                  revealed by the other. Siemens' programs are expressly
                  declared to be secret and confidential information.

         (b)      The Supplier shall not take or authorise the taking of any
                  photographs for use in any publicity or advertising or publish
                  alone or in conjunction with any other

                                      -11-
<PAGE>   15
                  person or article, photographs or other illustrations relating
                  to the Service on the Customer's Premises nor shall it impart
                  to any publication, journal or newspaper or any radio or
                  television program any information relating to this Agreement.

         (c)      If requested by Siemens, the Supplier will obtain a written
                  undertaking not to reveal confidential information to any
                  person, firm, corporation, body or organisation from the
                  members of its staff entitled to know such confidential
                  information.

         (d)      The Supplier shall indemnify Siemens against liability, loss
                  and costs arising from infringement or alleged infringement by
                  Siemens or any other person of any patent, copyright, design
                  right (whether registered or not), trade mark, trade name or
                  other proprietary right by the provision of the Service.

         (e)      If any allegation of infringement of third party rights as
                  referred to in Sub-clause 15(d) is made or in Siemens' opinion
                  is likely to be made, Siemens may modify or replace items
                  supplied by the Supplier at the Supplier's expense so as to
                  avoid the infringement.

16.      ASSIGNMENT

         (a)      In the event that the Prime Contract is terminated for
                  whatever reason, (save where the termination occurs by reason
                  of Siemens having a winding up order made other than for the
                  purpose of amalgamation or reconstruction):

                  (i)      Siemens shall be entitled to assign the benefit of
                           this Agreement to the Customer upon terms that allow
                           the Supplier to make any reasonable objection to
                           further assignment thereof by the Customer; and

                  (ii)     the Customer shall be entitled to pay to the Supplier
                           any amounts due for Services executed whether before
                           or after the assignment, insofar as the same has not
                           been paid by Siemens.

         (b)      The Supplier may not assign this Agreement nor any obligation
                  or rights hereunder without the prior written consent of
                  Siemens.

17.      SUB-CONTRACTORS

         The Supplier shall not without the prior written consent of Siemens
         engage any subcontractor to perform all or any part of this Agreement.
         Such consent, if given, may be made conditional on a confidentiality
         agreement containing at minimum the obligations set out in Clause 9
         being signed between the sub-contractor and Siemens.

                                      -12-
<PAGE>   16
18.      YEAR 2000

         (a)      The Supplier warrants that, where applicable, the Service to
                  be provided by the Supplier includes any service to ensure
                  that the Equipment is fully compatible (without modification,
                  loss of performance, loss of use, or work or expense on the
                  part of Siemens) with changes to inputs, outputs, data or
                  other information in relation to dates arising in the year
                  2000 and beyond, taking account of the year 2000 being a leap
                  year.

         (b)      The provisions of this Condition shall survive the expiry of
                  this Agreement.

19.      GENERAL PROVISIONS

         (a)      Headings. The headings in this Agreement are inserted for
                  convenience only and shall not constitute a part of or be
                  referred to in interpreting this Agreement.

         (b)      Statutory Obligations. The Supplier shall comply with all
                  statutory requirements, regulations and bye-laws applicable to
                  the Service.

         (c)      Governing Law. This Agreement and any dispute or matter
                  arising under it shall be governed by the Laws of England and
                  the parties hereby agree to submit to the exclusive
                  jurisdiction of the English courts

         (d)      Waiver. No terms or conditions hereof shall be deemed waived
                  and no breach or default excused unless such waiver or excuse
                  shall be in writing and signed by the party issuing the same.

         (e)      Enforcement. In the event that any provisions of this
                  Agreement are declared unenforceable by a court (or other
                  body) of competent jurisdiction then this Agreement, with
                  respect to enforceable provisions shall survive any such
                  declaration unless it is agreed that such declaration
                  adversely effects the original intention of the parties, in
                  which instance this Agreement may be terminated forthwith by
                  written notice of either party.

         (f)      Notices. Any notices given under this Agreement shall be in
                  writing addressed to the parties at their respective addresses
                  set forth herein or such other address as may be notified from
                  time to time by either party to the other.

         (g)      Entire Agreement. This Agreement constitutes and expresses the
                  entire Agreement between the parties relating to all matters
                  herein referred to and shall supersede all previous
                  agreements, discussions, promises, representations and
                  understandings relative thereto, if any, between the parties
                  and the standard terms and conditions of service of the
                  Supplier shall not be of any force or effect.

                                      -13-
<PAGE>   17
SCHEDULE 2

THE SERVICE LEVEL AGREEMENT

THE SERVICE LEVEL:

a)       The maintenance cover time shall be 09.00 to 18.00, Monday to Friday,
         excluding public and statutory holidays.

b)       The fix time for equipment faults on Radios, Radio Repeaters and
         Collect by Car systems will be no more than five working days.

c)       Service level performance measurement shall commence from the date this
         agreement is signed.

THE OPERATING PROCEDURE:

a)       Stores will report all faults for fixed equipment via the M&S Help Desk
         for Windows system on 0171 268 5999.

b)       Faulty radios will continue to be returned to Hugo via the existing
         Parcelforce courier system.

c)       Calls will be received by the Siemens Managed Service Operation in
         Wellingborough and passed to Hugo for resolution.

d)       Hugo will supply a fault reference to Siemens and an estimated time of
         arrival for their engineer.

e)       Where appropriate, and with prior notice, temporary equipment will be
         loaned to the user whilst the installed equipment is removed from site
         for repair.

f)       Any escalation of outstanding faults will be managed between the
         relevant Service Managers.

PREVENTATIVE MAINTENANCE:

Upon reasonable notice to the store, Hugo will carry out preventative
maintenance of fixed and where necessary mobile equipment. This will include
full inspection of the equipment, operational testing and adjustments where
necessary to comply with its specification.

COSTS OF SERVICE:

The costs and payment terms are outlined in Schedule 3.

PERFORMANCE STATISTICS:

At the end of each calendar month, the supplier will provide information on the
performance of their service highlighting the number of faults received, the fix
time of the faults, identify any issues by exception of those faults handled.

REVIEW MEETINGS:

Formal meetings will be held each quarter to review the performance and measure
the response of the supplier to the agreed SLA's.

WARRANTY:

Any maintenance that has been carried out on equipment will be subject to a
three month warranty of the part(s), except where failure is due to willful
damage.
<PAGE>   18
SCHEDULE 3

CHARGES AND DURATION

1.       Introduction

         This Schedule defines the payments due to the Supplier for the
         performance of the Services

2.       Charges

         Siemens will pay the Supplier pound sterling 120,000.00 (One Hundred
         and Twenty Thousand Pounds) exclusive of Value Added Tax per annum for
         the Service.

3.       Payment Arrangements

                  (a)      The Supplier shall issue invoices for the Charges
                           quarterly in advance.

                  (b)      Invoices should be on the Supplier's headed paper and
                           contain the following (Where applicable):

                           (i)      the VAT number

                           (ii)     a unique invoice number

                           (iii)    the name of the person at the Customer's
                                    Premises requesting the goods/Services

                           (iv)     a description of the goods/service

                           (v)      the invoice amount split down net, VAT
                                    amount and gross amount

                           (vi)     a schedule of Charges broken down by job and
                                    store, or per unit of Equipment supported.

                  (c)      Invoices for the Charges shall be submitted to:

                           Siemens Communications Limited, Brickhill Street,
                           Willen Lake, Milton Keynes, MK15 ODJ and marked for
                           the attention of Accounts Payable.

                  (d)      Subject to clause 7 of the terms and conditions
                           payment of correctly submitted invoices subject to
                           deductions permitted under this Agreement, shall be
                           made within 30 (thirty) days of receipt of the
                           invoice save in the circumstance that the invoice is
                           the subject of a bona fide dispute.
<PAGE>   19
4.       Term

         This Agreement will run for a minimum term of 3 (three) years unless or
         until terminated in accordance with clause 14.

                                      -2-

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