Document:

Exhibit 10.33

 

	
   

  	
  *TEXT
  OMITTED AND FILED SEPARATELY

  
	
   

  	
  Confidential
  Treatment Requested

  
	
   

  	
  Under
  17 C.F.R. Section 200.80(B)(4), 200.83 and

  
	
   

  	
  240.24b-2

  

 

FedEx Contract No. 06-0636

 

PROFESSIONAL SERVICES AGREEMENT

 

THIS PROFESSIONAL SERVICES AGREEMENT (the “Agreement”)
is made and entered into as of the 29th day of August, 2005 (the “Effective
Date”), by and between FEDEX CORPORATE SERVICES,
INC. (“FedEx”), and TIME AMERICA, INC. (the
“Contractor”).

 

RECITALS

 

1.             FedEx
desires to engage Contractor to perform the services described in this
Agreement.

 

2.             Contractor
is willing and able to perform the services for FedEx in accordance with the
terms and conditions of this Agreement.

 

FOR AND IN CONSIDERATION of the mutual covenants
contained in this Agreement, FedEx and Contractor (the “Parties”) agree as
follows:

 

ARTICLE 1

SCOPE OF WORK

 

Section 1.01. Scope of Work.  In consideration of FedEx’s payments under
this Agreement, Contractor shall perform in accordance with the terms and
conditions of this Agreement the services described in Exhibit A (the “Services”).

 

Section 1.02. 
Orders by Affiliates.  Throughout
the Term of the Agreement (as defined in Article 2 herein) and any further
extensions thereof, if any, any Affiliate of FedEx shall have the right to make
purchases under this Agreement.  For
purposes of this provision, the term “Affiliate”
shall mean any entity that, directly or indirectly, controls, is controlled by
or is under common control with FedEx, where “control” is defined as the
ownership of at least fifty percent (50%) of the equity or beneficial interests
of such entity, but only for so long as such control exists.  In the event of default by an
Affiliate, Contractor shall look solely to the defaulting Affiliate when
pursuing any remedies and not to FedEx or any other non-defaulting Affiliate
whose rights under the Agreement shall continue uninterrupted in accordance
with the terms of this Agreement.

 

ARTICLE 2

TERM

 

Section 2.01. Term.

 

(a)           The term
of this Agreement (the “Term”) shall commence as of the date hereof and shall
expire when the Services are completed, which shall not be later than May 31,
2008 (the “Completion Date”).

 

*    Confidential
Treatment Requested

 

 

(b)           FedEx
shall have the unlimited right to terminate this Agreement before the
Completion Date by giving written notice to Contractor.  In such event, Contractor shall be entitled
only to portions of the Fee earned and Reimbursables actually incurred as of
the effective date of termination.

 

ARTICLE 3

COMPENSATION

 

Section 3.01. 
Contractor’s Fee.  For and in consideration of the Services
provided in accordance with this Agreement, FedEx shall pay to Contractor a fee
(the “Fee”) according to the schedule set forth in Exhibit B.  In no event shall the aggregate amount of
Fees payable by FedEx exceed the maximum amount specified in Exhibit B and
all Services outlined in Exhibit A shall be completed within such maximum
amount.

 

Section 3.02. 
Reimbursable Expenses.

 

(a)           In
addition to the Contractor’s Fee, FedEx shall reimburse Contractor for such
reasonable and necessary expenses (“Reimbursables”) incurred by Contractor in
the performance of the Services, up to the maximum reimbursable amount
specified in Exhibit B.  Any
expenses incurred by Contractor in excess of the maximum reimbursable amount
shall not be deemed Reimbursables, and no Reimbursables claimed will be payable
unless properly documented in accordance with Section 3.03.

 

(b)           Reimbursables
for travel must be authorized by FedEx in advance, and will be paid only in
accordance with FedEx’s consultant travel policy, a copy of which policy will
be provided to Contractor upon request.

 

Section 3.03. 
Invoices. 
Unless otherwise provided, Contractor’s Fee and Reimbursables shall be
payable within thirty (30) days of approval by FedEx of invoices rendered by
Contractor for Services performed during the preceding invoice period or within
forty-five (45) days of invoice date, whichever occurs first.  Each invoice shall be accompanied by full documentation
in support of the Fee and Reimbursables invoiced, as well as a time sheet
prepared by Contractor and containing a statement of the number of hours
expended by Contractor in the performance of the Services.  Each time sheet shall reference the Contract No. of
this Agreement.  FedEx shall pay the
invoiced amount, less any appropriate deductions, subject to the maximum
amounts specified in Exhibit B. 
Notwithstanding, no payment by FedEx shall be deemed an acceptance of
the Services, and FedEx shall have the right to recover any amounts previously
paid in error or to withhold monies from future payments as FedEx deems
necessary to protect itself against charges associated with Services not
performed in accordance with this Agreement.

 

Section 3.04. 
Payment of Taxes.

 

(a)           Except as
provided in Section 3.04(b) hereof, Contractor shall bill FedEx for,
and FedEx shall pay, any and all taxes, excises, duties and assessments
whatsoever (including interest and penalties) (“Tax” or if plural, “Taxes”)
arising out of the charge for the performance of the Services, in any manner
levied, assessed or imposed by any government or subdivision or agency thereof
having jurisdiction shall be the sole responsibility and liability of
FedEx.  Contractor and FedEx will cooperate
in good faith and take such reasonable actions as are practicable to minimize
or, if possible, eliminate any such Tax.

 

(b)           FedEx’s
obligations under Section 3.04(a) above shall not extend to any of
the following:

 

(1)           taxes
based upon, measured by or with respect to the net or gross income, items of
tax preference or minimum tax or excess profits, receipts, capital, franchise,
net worth or conduct of business or other similarly-based taxes of Contractor;
or

 

*    Confidential
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(2)           amounts
(including, but not limited to, interest and penalties) imposed on Contractor
that would not have been imposed but for the willful misconduct or gross
negligence of Contractor.

 

(c)           Contractor
shall provide FedEx with an invoice separately stating the amount of the
charges related to Services and Taxes. 
With respect to any Tax which FedEx has assumed responsibility for under
this Section 3.04, FedEx shall either (i) pay such Tax directly to
the taxing jurisdiction, if permitted by law, (ii) pay such Tax to
Contractor in accordance with the payment procedures agreed to by FedEx and
Contractor, or (iii) provide to Contractor an exemption certificate or
letter stating that the entire charge or some portion of the charge is exempt
from any such Tax.  If payment is made in
accordance with clause (ii) above, upon written request of FedEx and at
the expense of Contractor, Contractor shall provide FedEx with evidence that
the Tax has been remitted to the taxing jurisdiction.

 

(d)           If any Tax
for which FedEx has assumed the responsibility for payment pursuant to this Section 3.04
is levied, assessed or imposed upon Contractor, Contractor shall promptly give
FedEx notice of such levy, assessment or imposition of which it has notice,
whereupon FedEx shall promptly pay and discharge the same or, if permitted by
law, shall contest such liability before payment.  If Contractor fails to notify FedEx, FedEx
will be relieved of its indemnity obligation under this section with
respect to that Tax.

 

(e)           Upon the
written request and at the expense of FedEx, Contractor shall fully cooperate
with FedEx in contesting or protesting the validity or application of any such
Tax (including, but not limited to, permitting FedEx to proceed in Contractor’s
name if required or permitted by law, provided, in each case, that such contest
does not involve, or can be separated from, the contest of any Tax or issues
unrelated to the transactions described in this Agreement).  FedEx shall also have the right to
participate in any contest conducted by Contractor with respect to a Tax or
other charge indemnifiable under this Section 3.04, including without
limitation, the right to attend conferences with the taxing authority and the
right to review submissions to the taxing authority or any court to the extent
such contest does not involve, or can be separated from, the contest of any Tax
or issues unrelated to the transactions described in this Agreement.  In the event Contractor shall receive a
refund of all or any part of such Tax which FedEx has paid and discharged, the
amount of such refund shall promptly be remitted to FedEx by Contractor, less
any expenses of Contractor associated with contesting the validity or
application thereof, not previously reimbursed by FedEx.

 

Section 3.05.
Changes in Services and Compensation.

 

(a)           FedEx may
order extra work or make changes by altering, adding to, or deducting from the
Services by entering into a mutually acceptable amendment or change order (“Change
Order”) with Contractor.  Services
pursuant to a valid Change Order shall be performed subject to the conditions
of this Agreement may be amended by mutual agreement in the Change Order or
Amendment to this Agreement.

 

(b)           FedEx
also by written instruction to Contractor may propose changes in the Services
not involving extra cost and not inconsistent with the purposes of the Services
without execution of a Change Order, but otherwise, no extra Services shall be
done or changes made unless pursuant to a Change Order, and no claim for an
addition to the Fee, an increase in the Maximum Reimbursable Amount, or an
extension of the Completion Date shall be valid unless so ordered in a signed
Change Order.

 

(c)           Upon
receipt of any written request or proposal for changes from FedEx for changes
in the Services or for extra work which would affect the Fee, the Maximum
Reimbursable Amount or the Completion Date, as contemplated by Section 3.05(a)
above, Contractor shall submit a statement detailing Contractor’s proposal for
accomplishing the changes proposed by FedEx and the effect, if any, on the Fee,

 

 

*    Confidential
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the Maximum Reimbursable
Amount and the Completion Date.  If FedEx
accepts Contractor’s proposal, a Change Order shall be executed by the parties
to effectuate the Services, the Fee, Maximum Reimbursable Amount and Completion
Date, as agreed.

 

ARTICLE 4

CONFIDENTIALITY OF INFORMATION

 

Section 4.01. 
Confidentiality of Information.  Except
as otherwise provided in this Agreement, the use and disclosure by one party of
the other party’s Confidential Information shall be governed by and subject to
the terms and conditions of that certain Mutual Non-Disclosure Agreement
between the parties dated May 23, 2003 (the “MNDA”), which is incorporated
herein by reference. As used in this Agreement, the term “Confidential Information”
shall have the meaning ascribed to the term in the MNDA.  Moreover, if the Expiration Date of the MNDA
as stated in Section 5 therein is earlier than the Completion Date of this
Agreement, then the Expiration Date of the MNDA shall be extended to
coterminate with the term hereof, but the obligations of confidentiality shall
continue thereafter in accordance with the terms of the MNDA.

 

ARTICLE 5

OWNERSHIP OF MATERIALS

 

Section 5.01.        Ownership
of Materials.

 

(a)           All
software, computer programs, specifications, documentation, data and other
materials provided or contributed by FedEx in connection with this Agreement
and all modifications and enhancements thereto and derivatives thereof are and
shall remain the sole and exclusive property of FedEx, and Contractor shall
have no right to use or disclose same except solely to the extent permitted
hereunder for the benefit of FedEx.

 

(b)           Except for
the Contractor Improvements (hereinafter defined), all software, computer
programs, specifications, documentation, reports, data and other materials
originated and prepared by Contractor for FedEx pursuant to this Agreement,
whether developed solely or jointly by employees of Contractor, or jointly by
one or more employees of Contractor with one or more employees of FedEx in the
performance of the work pursuant to this Agreement (collectively, the “Deliverables”),
shall be the sole and exclusive property of FedEx, free from any claim or
retention of rights thereto on the part of Contractor.  Upon the expiration or other termination of
this Agreement, Contractor shall deliver to FedEx all copies of any and all
Deliverables, including without limitation, as applicable, source codes and
documentation relating thereto.  Contractor
shall have no right to disclose or use any of such Deliverables for any purpose
whatsoever, and Contractor acknowledges that such Deliverables are proprietary
to FedEx, having been secretly developed for FedEx for its sole use.  Contractor hereby (i) assigns to FedEx
any right now held or hereafter acquired by Contractor in the Deliverables
including, but not limited to, any copyright, patent or other statutory or
common law protection and (ii) agrees to assist FedEx in every proper way,
at FedEx’s expense, to obtain and, from time to time, enforce any copyrights,
patents or other statutory or common law protections for the Deliverables,
including but not limited to, the execution of all documents necessary for
FedEx to apply for and obtain such copyrights, patents and other statutory or
common law protections and enforcing the same, together with any assignments
thereof to FedEx.  All computer programs
and documentation constituting part of the Deliverables originated and
developed by Contractor for FedEx under this Agreement are to be considered
works made for hire as that term is defined in Section 101 of the
Copyright Act (17 U.S.C., Section 101) and are the sole and exclusive
property of FedEx.

 

(c)           All
computer programs, products, documentation, and other materials developed and
owned by Contractor prior to commencement of this Agreement and furnished to
FedEx in the

 

*    Confidential
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performance of its
obligations hereunder are and shall remain the sole property of Contractor (the
“Pre-Existing Contractor Materials”). 
All modifications, enhancements and other improvements to the
Pre-Existing Contractor Materials which are developed by Contractor in
connection with its performance of the work under this Agreement (except for
any newly-developed standalone code, modules, interfaces, or other original
works of authorship which are part of the Deliverables), shall be owned solely
by Contractor (the “Contractor Improvements”).

 

(d)           Contractor
shall retain all ownership right, title and interest in and to all of
Contractor’s ideas, concepts, know-how, skills, methodologies, and techniques,
whether possessed by Contractor prior to the commencement of this Agreement or
developed or refined by Contractor during the course of performance by
Contractor of the work under this Agreement (collectively referred to as “Knowledge
Capital”); provided, however, Contractor’s Knowledge Capital shall not include (i) any
Confidential Information of FedEx; or (ii) any ideas, concepts, know-how,
skills, methodologies, or techniques which (A) are developed solely by
FedEx, or (B) are unique to FedEx or its applications (i.e., unique to a FedEx business rule such
that it is not capable of use and application by any other customer of
Contractor) and are first
developed (either solely by Contractor or jointly by Contractor and FedEx) as
part of the Deliverables [all of which items in clauses (i) and (ii) of
this subsection (d) shall be deemed to be Confidential Information of
FedEx and shall be subject to and protected by the provisions of Article 4
of the Agreement].  Nothing herein shall
be deemed to grant to Contractor any license or other right to or under any of
FedEx’s copyrights, patents, trade secrets, trademarks or other proprietary or
intellectual property.

 

(e)           Contractor
hereby grants to FedEx a non-transferable, non-exclusive, perpetual,
royalty-free, irrevocable, worldwide (subject to export restrictions for
Controlled Information) right and license to use, copy, modify, enhance, and
maintain (i) the Pre-Existing Contractor Materials and the Contractor
Improvements for FedEx’s internal purposes, and (ii) Contractor’s Knowledge
Capital as embodied in, or to the extent necessary for its use of, the
Pre-Existing Contractor Materials, the Contractor Improvements and/or the
Deliverables solely for FedEx’s internal purposes.  FedEx shall have the right to disclose the
Pre-Existing Contractor Materials and the Contractor Improvements to FedEx’s
Contractors, contractors and outsourcers who have a need to know, are not
competitors of the Contractor  and who
have executed a non-disclosure agreement with FedEx that provides no less
protection of the Contractor’s Confidential Information than the MNDA.  Notwithstanding anything in this Agreement to
the contrary, FedEx shall have no right to make for any third party or sell,
rent, assign, lease or maintain any Deliverable, Software or the Prototype.

 

(f)            Contractor
agrees that the obligations stated under this Article 5 shall survive the
expiration or earlier termination of this Agreement.

 

ARTICLE 6

INDEMNIFICATION

 

Section 6.01. 
Contractor’s Indemnification.  Contractor hereby releases and agrees to
indemnify and hold harmless FedEx, its officers, agents and employees from any
and all liabilities, damages, losses, expenses, demands, suits, or judgments,
including all attorneys’ fees, costs, and expenses incidental thereto, for
death of or injuries to any person and for the loss of, damage to or
destruction of any property in any manner arising out of the negligent or
intentional acts or omissions of Contractor, its agents, employees, or
subcontractors.  Contractor shall also
indemnify FedEx against any liability or payment in connection with federal,
state and local taxes or contributions imposed upon or required of FedEx under
unemployment insurance, social security, income tax and workers’ compensation
statutes with respect to Contractor’s Services.

 

*    Confidential
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Section 6.02. 
Infringement Indemnification.  Contractor, at its own expense, shall
indemnify, defend and hold harmless FedEx, its directors, officers, employees,
and agents (including their respective successors and assigns), against any
claims based on an allegation that any deliverables created by Contractor and
furnished to FedEx in the performance of the Services, or that the use by, or
sale, lease, or license to, FedEx of such deliverables delivered under this
Agreement, infringes any United States patent, copyright or other proprietary
right, and Contractor shall pay any royalties and other costs related to the settlement
of such claim, and the cost and damages, including attorneys’ fees, finally
awarded as a result of any suit based on such claim, provided FedEx promptly
notifies Contractor in writing of any such claim and gives Contractor authority
and such assistance and information as is available to FedEx for the defense of
such claim.  Any such assistance or
information which is furnished by FedEx at the written request of Contractor
shall be at Contractor’s expense. 
Notwithstanding, Contractor shall not consent to any injunction decree,
judgment, or settlement which would have the effect of imposing an obligation
on FedEx without FedEx’s prior written consent. This indemnity obligation of
the Contractor shall not apply to any infringement caused by: a) modifications
to any deliverable made by FedEx or anyone other than the Contractor unless
such modifications were authorized by the Contractor in writing; b) use of the
deliverables in combination with any product, software, information or
communications technology or other technology not furnished by the Contractor
hereunder or approved by the Contractor in writing; c) use of any deliverable
after notice from the Contractor that continued use may infringe  the intellectual property rights of others;
d) any use of any deliverables after receipt of notice of infringement; or e)
any infringement arising out of any information or requirement provided or
specified by FedEx.

 

Section 6.03.  Removal of Restrictions.  If any software, source codes, programming
documentation, or other materials furnished by Contractor in the performance of
this Agreement, or the use by, or sale, lease or license to, FedEx of any
software, source codes, programming documentation or other materials delivered
under this Agreement is enjoined as a result of a suit based on any claim of
infringement of any patent, copyright or other proprietary right, Contractor
shall promptly, at its option, but in no event later than thirty (30) days
after FedEx’s use of any materials is so enjoined, either (i) negotiate a
license or other agreement with the claimant so that the software, source
codes, programming documentation or other materials are no longer subject to
such injunction; (ii) modify such materials so that they become
non-infringing, provided such modification can be accomplished without
materially affecting the performance of the materials (which modification shall
further be subject to the prior approval of FedEx); (iii) replace the
infringing material with an equivalent non-infringing material of equal
performance, characteristic and quality, subject to the prior approval of
FedEx; or (iv) refund the Fee and Reimbursables paid by FedEx for the
materials so enjoined.

 

Section 6.04. 
Limitation of Liability.  EXCEPT FOR CLAIMS OF FRAUD, GROSS NEGLIGENCE,
WILLFUL MISCONDUCT OR WITH RESPECT TO A PARTY’S OBLIGATION OF CONFIDENTIALITY
OR INDEMNIFICATION AS PROVIDED IN THIS AGREEMENT, IN NO EVENT SHALL FEDEX OR
CONTRACTOR, AND THEIR RESPECTIVE AGENTS, REPRESENTATIVES, AND EMPLOYEES BE
LIABLE FOR (1) DAMAGES BASED UPON, ARISING OUT OF, RESULTING FROM OR IN
ANY WAY CONNECTED WITH THE PERFORMANCE OR BREACH OF THIS AGREEMENT, ANY
DELIVERABLE, OR OTHER ITEMS OR SERVICES IN AN AMOUNT IN EXCESS OF THE MAXIMUM
FEE PAID OR DUE TO BE PAID HEREUNDER OR (2) INCIDENTAL, SPECIAL OR
CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT LIMITATION, LOST REVENUES OR
PROFITS.  THE LIMITATIONS AND EXCLUSIONS
IN THIS PARAGRAPH SHALL APPLY TO ALL CLAIMS OF EVERY NATURE, KIND AND
DESCRIPTION WHETHER ARISING FROM BREACH OF CONTRACT, BREACH OF WARRANTY,
NEGLIGENCE OR OTHER TORT.

 

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ARTICLE 7

WARRANTIES

 

Section 7.01. 
Contractor’s Warranty.

 

(a)           With
respect to the Services, Contractor warrants to FedEx that:

 

(1)           it
shall perform the Services according to the terms and conditions of this
Agreement and in conformity with accepted standards of Contractor’s profession;

 

(2)           all
software, source codes, programming documentation and other materials furnished
to FedEx under this Agreement do not infringe upon or violate any patent,
copyright, trade secret, or any other proprietary right of any third-party;

 

(3)           all
materials furnished and Services performed by Contractor pursuant to this
Agreement shall conform to and perform in accordance with FedEx’s requirements
as specified in the SOW attached hereto as Exhibit A; and

 

(4)           all
materials furnished under this Agreement shall be free from defects in material
and workmanship under normal use and service when properly installed and
maintained.

 

(b)           Contractor
shall, at its option, repair or replace any Deliverable that fails to conform
to the requirements of this Agreement if Contractor receives notice of the
non-conformity from FedEx within ninety (90) days of its delivery by
Contractor, which notice shall contain a description of the nature of the
non-conformity sufficiently clear for the Contractor to identify the problems
alleged to exist and to reproduce any errors or failure of the
Deliverable.  In the event a Deliverable
is not capable of repair or replacement, then Contractor shall refund all fees
associated with such Deliverable. 
Contractor shall not be deemed or held to be obligated or accountable
upon or under any warranties or guaranties, express or implied, statutory, by
operation of law, or otherwise, in any manner or form, beyond the express
warranties set forth in this Article 7 and the remedy specified in this
sub-section shall be the exclusive remedy of FedEx for warranty issues. THE
PARTIES AGREE THAT ALL IMPLIED WARRANTIES ARE EXCLUDED FROM THIS AGREEMENT
INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

 

Section 7.01. 
Additional Warranties. 
In addition to the warranties set forth above, Contractor also warrants
and represents that it has legal title to transfer all materials sold to FedEx
pursuant to this Agreement, free and clear of any and all security interest,
liens, claims, charges or encumbrances of any nature whatsoever, together with
full power and lawful authority to deliver such materials to FedEx.

 

ARTICLE 8

INSURANCE

 

Section 8.01. 
Contractor’s Insurance.  Contractor will, at its own expense, during
the Term of this Agreement, maintain adequate coverage to insure its
liabilities under this Agreement, including but not limited to, comprehensive
general liability, errors and omissions, fire and theft with extended coverage,
and valuable papers insurance, and fidelity bonds covering each of Contractor’s
employees.

 

*    Confidential
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ARTICLE 9

RIGHT OF AUDIT

 

Section 9.01. 
FedEx’s Right of Audit.  The Contractor shall keep full and accurate
records of all costs incurred and items billed in connection with this
Agreement, which records shall be open to audit by FedEx, or any authorized
representative of FedEx, during the course of this Agreement and until two (2) years
after expiration or earlier termination of this Agreement.

 

ARTICLE 10

INDEPENDENT CONTRACTOR RELATIONSHIP

 

Section 10.01. Independent Contractor
Relationship. The Parties intend that an independent contractor
relationship will be created under this Agreement.  FedEx is interested only in the final
performance of Contractor hereunder and the results achieved thereby, and shall
not exercise any control over the conduct of the Services or the means of performance
thereof.  The employees of Contractor
performing the Services shall throughout the Term of this Agreement be deemed
employees of Contractor for all purposes, and shall not be deemed to be
employees, servants, or agents of FedEx for any purpose.  Accordingly, with respect to Contractor’s
employees, Contractor shall have full responsibility for the collection and
payment of all federal, state, and local taxes or contributions imposed on
Contractor that are required pursuant to unemployment insurance, social
security, income taxes, and workers’ compensation statutes.  Contractor shall indemnify and hold harmless
FedEx from and against any liability (including taxes, interest, and penalties)
resulting from Contractor’s improper or incorrect tax reporting, withholding,
remitting, etc., or from Contractor’s failure to file, collect, report or pay
any of the above-mentioned employment taxes.

 

 

ARTICLE 11

COMPLIANCE WITH LAWS

 

Section 11.01.      Compliance with Laws.

 

(a)           Each party
agrees that it will comply with all applicable federal, state, and local laws,
regulations, and codes in the performance of this Agreement, including any
applicable laws regulating the export of Controlled Information.

 

(b)           Each party
agrees to indemnify, defend and hold harmless the other, its officers,
directors and employees from and against any and all claims, losses, demands,
actions, administrative proceedings, liabilities and judgments, including
reasonable attorneys’ fees and expenses, arising from its failure to comply
with the provisions of this Article 11.

 

ARTICLE 12

MISCELLANEOUS

 

Section 12.01. 
Other Vendors. 
Subject to FedEx obligations and restrictions imposed by the MNDA, FedEx
reserves the right to engage the services of such other contractors and
third-party vendors who are not competitors of the Contractor as FedEx deems
necessary, and provided that such other contractors and third-party vendors
agree to the terms of the MNDA, Contractor agrees to cooperate with any such
third parties and to comply with all reasonable requests by FedEx to coordinate
its activities with those of such other vendors.

 

*    Confidential
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Section 12.02.  Inspection.  Contractor agrees that, at all times during
the Term of this Agreement, FedEx shall have the right to make inspections of
the Services performed by Contractor under this Agreement.  Any inspection by FedEx shall be performed so
as not to unduly delay Contractor’s performance of the Services.

 

Section 12.03. 
Cooperation and Assumptions.  Notwithstanding any provision of this
Agreement to the contrary, Contractor’s performance of this Agreement in a
timely manner is subject to the reasonable cooperation of FedEx in providing
access to necessary resources, equipment, facilities, approvals and information
necessary for the Contractor to perform.

 

Section 12.04.      Use of FedEx’s Name.  Without FedEx’s prior written approval,
Contractor shall not (a) refer to its selection by FedEx in any
advertising, publicity release or sales presentation in such a manner as to
state or imply that any deliverables or Services provided hereunder are
endorsed or preferred by FedEx; (b) use the name, service marks, or
trademarks of FedEx or any of its Affiliates; nor (c) release any press
releases or other information revealing the existence of the Agreement or its
terms and conditions.  As used in this Section 12.04,
the term “FedEx” shall include, without limitation, FedEx Corporation and its
subsidiaries and affiliates, both direct and indirect.  Except as may be necessary to comply with any
reporting requirements under federal or state securities law, Contractor shall
not disclose any details of this Agreement to any party except as may be
authorized in writing by an authorized officer of FedEx.

 

Section 12.05.  Section Headings.  All section headings and captions used
in this Agreement are purely for convenience or reference only, and shall not
affect the interpretation of this Agreement.

 

Section 12.06.  Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, and the Parties
submit to the jurisdiction of any appropriate court within New York for
adjudication of disputes arising from this Agreement.

 

Section 12.07.  Excused Non-Performance.  Neither party shall be responsible for delays
or failures in performance resulting from acts beyond the control of such
party.  Such acts shall include but not
be limited to acts of God, strikes, lockouts, riots, acts of war, epidemics,
governmental regulations superimposed after the fact, fire, communication line
failures, power failures, earthquakes, or other disasters.

 

Section 12.08.  Assignment.  Neither this Agreement nor any other
obligations of Contractor under this Agreement shall be assignable or delegable
by Contractor without the prior written consent of FedEx.  This Agreement shall be binding upon and
inure to the benefit of the parties, their respective successors, assigns and
legal representatives.

 

Section 12.09.  Change of Control.  In addition to such other rights as FedEx may
have, FedEx shall have the right to immediately terminate this Agreement upon
any change in the majority ownership or voting control of the capital stock,
business, or assets of Contractor. 
Contractor shall promptly notify FedEx in writing of any such change in
control of the Contractor.

 

Section 12.10.  Further Assurances.  Each party agrees that it will take such
actions, provide such documents, do such things and provide such further
assurances as may reasonably be requested by the other party during the Term of
this Agreement.  Contractor agrees to
provide to FedEx, from time to time, any other financial information as FedEx
may reasonably request to determine Contractor’s ability to perform its
obligations under this Agreement.

 

Section 12.11.  Exhibits.  All exhibits described in this Agreement
shall be deemed to be incorporated in and made a part of this Agreement, except
that if there is any inconsistency between this Agreement and the provisions of
any exhibit the provisions of this Agreement shall control.  Terms used in an exhibit and

 

*    Confidential
Treatment Requested

 

 

also used in this Agreement shall have the same meaning in the exhibit
as in this Agreement.

 

Section 12.12.  Modification.  Except as otherwise provided, this Agreement
shall not be modified except by written agreement signed on behalf of FedEx and
the Contractor by their respective authorized officers.

 

Section 12.13.  Entire Agreement.  This Agreement supersedes all prior
understandings, representations, negotiations and correspondence between the
parties, constitutes the entire agreement between them with respect to the
matters described, and shall not be modified or affected by any course of
dealing, course of performance, or usage of trade.

 

Section 12.14.  Severability.  If any provision of this Agreement is held to
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall in no way be affected or impaired.

 

Section 12.15.  Waiver.  The failure of either party at any time to
require performance by the other of any provision of this Agreement shall in no
way affect that party’s right to enforce such provision, nor shall the waiver
by either party of any breach of any provision of this Agreement be taken or held
to be a waiver of any further breach of the same provision or any other
provision.

 

Section 12.16.  Survival.  The provisions of this Agreement which by
their nature extend beyond the expiration or earlier termination of the
Agreement will survive and remain in effect until all obligations are
satisfied.  Specifically, the Contractor’s
obligations to indemnify FedEx shall survive this Agreement.

 

Section 12.17.  Notices.  Notices given under this Agreement shall be
in writing and shall be deemed to have been given and delivered when received,
if sent by the United States Mail, certified or registered mail, with postage
prepaid and addressed, or sent by way of FedEx Express service:

 

	
  If to FedEx, to:

  	
   

  	
  Line Haul System
  Support

  
	
   

  	
   

  	
  FedEx Corporate
  Services, Inc.

  
	
   

  	
   

  	
  2955 Republican Drive,
  2nd Floor

  
	
   

  	
   

  	
  Memphis, Tennessee
  38118

  
	
   

  	
   

  	
  Attention: Managing
  Director - IT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Project &
  Engineering Support

  
	
   

  	
   

  	
  Federal Express
  Corporation

  
	
   

  	
   

  	
  3620 Hacks Cross Road
  Building B 2nd Floor

  
	
   

  	
   

  	
  Memphis, TN 38125

  
	
   

  	
   

  	
  Attention: Managing
  Director

  
	
   

  	
   

  	
   

  
	
  With copy to:

  	
   

  	
  Managing Director -
  Legal Technology Transactions

  
	
   

  	
   

  	
  FedEx Corporation

  
	
   

  	
   

  	
  3620 Hacks Cross Road -
  Building B, Third Floor

  
	
   

  	
   

  	
  Memphis, Tennessee
  38125

  
	
   

  	
   

  	
   

  
	
  and if to Contractor:

  	
   

  	
  Time America, Inc.

  
	
   

  	
   

  	
  8840 East Chaparral
  Road – Suite 100

  
	
   

  	
   

  	
  Scottsdale, Arizona
  85250

  
	
   

  	
   

  	
  Attn: Craig Smith, CFO

  

 

or to such other address provided to the other party by written
notification.

 

*    Confidential
Treatment Requested

 

 

Section 12.18.  Work at Site.  When working at any of FedEx’s sites,
Contractor, its agents, employees and subcontractors will comply with all
reasonable safety and security (including, without limitation, data security)
requirements of FedEx, including the wearing of identification badges on the
site and obtaining the prior consent of FedEx before connecting any hardware or
peripheral devices to the FedEx network. 
In addition, Contractor acknowledges that it has no expectation of
privacy while using FedEx’s information systems and equipment.  The foregoing exception shall not relieve
FedEx of any obligations under the MNDA.

 

Section 12.19.
Validity of Agreement.  This Agreement shall not be valid nor binding
upon FedEx unless it shall have been executed by an officer of FedEx and
approved by its Legal Department.

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed as of the day and year first above written.

 

 

	
  FEDEX:

  	
   

  	
  CONTRACTOR:

  
	
  FEDEX CORPORATE SERVICES, INC.

  	
   

  	
  TIME AMERICA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Printed name:

  	
   

  	
   

  	
  Printed name:

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  
							

 

*    Confidential
Treatment Requested

 

 

Exhibit A

to that certain

Professional Services Agreement

between

FedEx Corporate Services, Inc.
(“FedEx”) and Time America, Inc. (“Contractor”)

 

STANDARD SERVICES PRICE LIST AND
DESCRIPTIONS

 

	
  MFG Part #

  	
   

  	
  DESCRIPTION

  	
   

  	
  COST

  
	
  68-50800

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  68-50800

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  68-32005

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  69-37400

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  68-37100

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  68-37200

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  68-37300

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  68-38000

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  68-37700

  	
   

  	
  [*]

  	
   

  	
  [*]

  

 

 

	
  SPECIFIC SERVICES

  	
   

  	
  DESCRIPTION

  
	
  [*]

  	
   

  	
  [*]

  
	
  [*]

  	
   

  	
  [*]

  
	
  [*]

  	
   

  	
  [*]

  
	
  [*]

  	
   

  	
  [*]

  
	
  [*]

  	
   

  	
  [*]

  
	
  [*]

  	
   

  	
  [*]

  
	
  [*]

  	
   

  	
  [*]

  

 

 

OTHER SERVICES

 

1.     Equipment
Installation – for the Equipment ordered under the Third Order described in
FedEx Amendment No. 06-0037-001 (dated August 29, 2005) shall be
provided at a cost of $112,700.00

 

2.     The
fee for other services such as custom software configuration shall be mutually
agreed on a per engagement basis pursuant to an amendment to this Agreement.

 

*    Confidential
Treatment Requested

 

 

Exhibit B

to that certain

Professional Services Agreement

between

FedEx Corporate Services, Inc.
(“FedEx”) and Time America, Inc. (“Contractor”)

 

INITIAL ORDER AND STATEMENT OF
WORK

 

In accordance with and subject to the terms of the Professional
Services Agreement dated August 29, 2005, Contractor agrees to perform the
following services on behalf of FedEx:

 

A.            SOFTWARE CUSTOMIZATION SERVICES (Fee - $87,000.00) – Within
ninety (90) days of the Agreement Effective Date, Contractor will configure the
Software to provide functional features that:

 

	
  [*]

  
	
  [*]

  
	
  [*]

  
	
  [*]

  
	
  [*]

  
	
  [*]

  
	
  [*]

  
	
  [*]

  
	
  [*]

  
	
  [*]

  
	
  [*]

  

 

A.            TRAINING
CLASSES – (Fee - $11,100.00)

 

	
  Description

  	
   

  	
  Unit

  	
   

  	
  Fee

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  

 

*    Confidential
Treatment Requested

 

 

Exhibit C

to that certain

Professional Services Agreement

between

FedEx Corporate Services, Inc.
(“FedEx”) and Time America, Inc. (“Contractor”)

 

INITIAL FEE, MAXIMUM REIMBURSABLE
AMOUNT

AND PAYMENT PROCEDURE

 

A.            FEE.  FedEx will pay the Contractor in current
funds for complete performance of the Services, subject to additions and
deductions by Change Order or as otherwise provided in the Agreement, a Fee
according to the schedule set forth below:

 

 

	
  MILESTONE

  	
   

  	
  DESCRIPTION

  	
   

  	
  FEE

  	
   

  
	
  1

  	
   

  	
  Within ten
  (10) business days of Agreement execution

  	
   

  	
  $

  	
  43,500.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Upon successful completion
  of pilot program based upon

  [*] units of Equipment

  acquired under Equipment Purchase, License and Services Agreement

  between the parties dated August      , 2005

  	
   

  	
  $

  	
  43,500.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Upon completion of
  Training Services

  	
   

  	
  $

  	
  11,100.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TOTAL FEES

  	
   

  	
  $

  	
  98,100.00

  	
   

  

 

In no event, however, shall the maximum amount of Fees
payable by FedEx under the Agreement exceed Ninety-Eight Thousand One Hundred
Dollars ($98,100.00) in the aggregate, unless otherwise mutually agreed to in
writing by the parties pursuant to a duly executed Change Order.

 

B.            FEE
PAYMENT PROCEDURE.  The
Fee is payable in accordance with the following procedure:

 

Subject to the provisions of Section 3.03 of the
Agreement, each applicable portion of the Fee shall be payable by FedEx after
receipt and acceptance by FedEx of the applicable corresponding deliverable
described in Exhibit A.

 

C.            MAXIMUM
REIMBURSABLE AMOUNT is $16,810.00.

 

D.            INVOICES
shall be submitted by the Contractor to the following address:

 

Line Haul System
Support

FedEx Corporate
Services, Inc.

2955 Republican
Drive, 2nd Floor

Memphis, Tennessee
38118

Attention:  Managing Director - IT

 

*    Confidential
Treatment Requested

 

 

Exhibit D

to that certain

Professional Services Agreement

between

FedEx Corporate Services, Inc. (“FedEx”) and Time America, Inc. (“Contractor”)

 

CHANGE ORDER FORM

 

Professional Services Agreement No. 06-0636

 

Change Order Date:
                                                         

 

	
  To Contractor:

  	
   

  	
  Time America, Inc.

  
	
   

  	
   

  	
  8840 East Chaparral Road – Suite 100

  
	
   

  	
   

  	
  Scottsdale, Arizona 85250

  
	
   

  	
   

  	
  Attn: Craig Smith, CFO

  

 

As provided in your Professional Services Agreement with FedEx
Corporate Services, Inc. dated as of August 29, 2005, the following
changes in the Services are made:

 

This Change Order when signed by the Parties will have the following
effect:

 

	
  a.

  	
   

  	
  Fee:

  	
   

  	
  (increase/decrease/NA)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  b.

  	
   

  	
  Maximum Reimbursable Amount:

  	
   

  	
  (increase/decrease/NA)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  c.

  	
   

  	
  Completion Date:

  	
   

  	
   

  

 

This Change Order in no other way alters the terms and conditions of
the Professional Services Agreement which are ratified and confirmed other than
as amended by this Change Order.

 

 

FEDEX CORPORATE SERVICES, INC.

 

 

By:

Printed Name:

Title:

Date:

 

 

TIME AMERICA, INC.

 

 

By:

Printed Name:

Title:

Date:

 

*    Confidential
Treatment RequestedExhibit 10.34

 

	
   

  	
  *TEXT
  OMITTED AND FILED SEPARATELY

  
	
   

  	
  Confidential
  Treatment Requested

  
	
   

  	
  Under
  17 C.F.R. Section 200.80(B)(4), 200.83 and

  240.24b-2

  

 

FEDEX CONTRACT NO. 06-0636-001

 

AMENDMENT

 

THIS AMENDMENT, made
effective as of August 29, 2005 (the “Effective Date”), by and between FEDERAL EXPRESS CORPORATION (“Federal”) and TIME AMERICA, INC. (“Contractor”).

 

RECITALS

 

WHEREAS, FedEx Corporate
Services, Inc. and Contractor entered into a Professional Services
Agreement dated August 29, 2005, as amended (the “Agreement”); and

 

WHEREAS, Federal and
Contractor now desire to further amend the Agreement to allow for the
performance of additional services by Contractor on behalf of Federal.

 

FOR AND IN CONSIDERATION of
the mutual covenants contained in this Amendment, Federal and Contractor (the “parties”)
agree as follows:

 

1.                                       Additional Services and
Fees.

 

a.             Second Order

 

(1)                                  Upon Federal’s acceptance of the testing
of the first three (3) Equipment units acquired pursuant to FedEx Contract
No. 06-0037-001, Contractor agrees to perform, on behalf of Federal, the
additional services described in Exhibit A which is attached hereto and incorporated
herein by reference (the “Second Order Services”).

 

(2)                                  In exchange for performing the Second
Order Services, Contractor shall receive a fee which in no event shall exceed
the maximum amount of Thirteen Thousand Four Hundred Dollars ($13,400.00), plus
applicable taxes.

 

(3)                                  The amount for Reimbursables associated with
the Second Order Services shall be limited to a maximum of Five Thousand Three
Hundred Seventy-Five Dollars ($5,375.00)..

 

b.             Third Order

 

(1)                                  Upon Federal’s acceptance of the pilot
field test of the [*] units acquired pursuant to FedEx Contract No. 06-0037-001,
Contractor agrees to perform, on behalf of Federal, the additional services
described in Exhibit B which is attached hereto and incorporated
herein by reference (the “Third Order Services”)..

 

*  Confidential Treatment Requested

 

 

(2)                                  In exchange for performing the Third
Order Services, Contractor shall receive a fee which in no event shall exceed
the maximum amount of One Hundred Forty-Five Thousand Nine Hundred Dollars
($145,900.00), plus applicable taxes.

 

(3)                                  The amount for Reimbursables associated with
the Third Order Services shall be limited to a maximum of Eighteen Thousand
Five Hundred Eighty-Five Dollars ($18,585.00)..

 

2.                                       Miscellaneous.

 

a.                                       Except as otherwise provided in this
Amendment, all words and definitions used in this Amendment shall have the same
meaning in this Amendment as in the Agreement.

 

b.                                      Other than as provided in this Amendment, all
terms and provisions of the Agreement are hereby ratified and confirmed.

 

IN WITNESS WHEREOF, the
parties hereby execute this Amendment on the day and year first above written.

 

 

	
  FEDERAL
  EXPRESS CORPORATION

  	
  TIME
  AMERICA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
   

  	
   

  	
  BY:

  
	
   

  	
   

  	
   

  	
   

  
	
  PRINTED
  NAME:

  	
   

  	
   

  	
  PRINTED
  NAME:

  
	
   

  	
   

  	
   

  	
   

  
	
  TITLE:

  	
   

  	
   

  	
  TITLE:

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  	
  DATE:

  
							

 

*  Confidential Treatment Requested

 

 

Exhibit A

to the
certain

Amendment
No. 06-0036-001

between

FedEx
Corporate Services, Inc. (“FedEx”) and Time America, Inc. (“Contractor”)

 

SECOND
ORDER SERVICES AND FEES

 

In
accordance with and subject to the terms of the Professional Services Agreement
dated August 29, 2005, Contractor agrees to provide the following Services
only after acceptance by Federal of the testing of the * (*) units of Equipment
purchased under FedEx Contract No. 06-0037-001:

 

I.              FEES

 

	
  DESCRIPTION OF SERVICES

  	
   

  	
  QTY

  	
   

  	
  UNIT COST

  	
   

  	
  FEE

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  INITIAL
  ORDER / TOTAL FEE

  	
   

  	
  $

  	
  13,400.00

  	
   

  
									

 

II.            MAXIMUM REIMBURSABLE
AMOUNT is $5,375.00.

 

*  Confidential Treatment Requested

 

 

Exhibit B

to the
certain

Amendment
No. 06-0036-001

between

FedEx
Corporate Services, Inc. (“FedEx”) and Time America, Inc. (“Contractor”)

 

THIRD
ORDER SERVICES AND FEES

 

In
accordance with and subject to the terms of the Professional Services Agreement
dated August 29, 2005, Contractor agrees to provide the following Services
only after acceptance by Federal of the pilot field testing of the * (*) units
of Equipment purchased under FedEx Contract No. 06-0037-001:

 

I.              FEES

 

	
  DESCRIPTION OF SERVICES

  	
   

  	
  QTY

  	
   

  	
  UNIT COST

  	
   

  	
  FEE

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  SECOND
  ORDER / TOTAL FEE

  	
   

  	
  $

  	
  145,900.00

  	
   

  
									

 

II.            MAXIMUM REIMBURSABLE
AMOUNT is $,18,585.00.

 

*  Confidential Treatment Requested

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