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Resolution No. 100171 2 3 4 5 6 7 6l 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 10,017 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A MUTUAL NONDISCLOSURE AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND FUJITSU NETWORK COMMUNICATIONS, INC. WHEREAS, the City of Vernon ("City") is a chartered municipal corporation of the State of California that owns and operates a system for the generation, purchase, transmission, distribution and sale of electric capacity and energy; and WHEREAS, the current Internet Services Network Monitoring and Management contract with Verizon Select Services has reached the end of its three (3) year term and the Fiber Optic Division of the Light & Power Department is negotiating a contract with Fujitsu Network Communications, Inc. ("Fujitsu") for the same services for a three (3) year term; and WHEREAS, the City and Fujitsu seek to obtain certain confidential or proprietary information from each other during the contract negotiation process; and WHEREAS, in order to exchange, review and use confidential information regarding pricing and the City's equipment requirements, location and topology for the purpose of facilitating a business relationship, and to preserve and protect the rights of each party during the exchange of information, the City and Fujitsu desire to enter into a mutual confidentiality agreement that preserves the confidentiality and protected status of the documents, materials, and information to be exchanged, retained and used; and WHEREAS, the City Council of the City of Vernon has 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 determined that, pursuant to the provisions of subsection (a) of Section 2.27 of the Vernon City Code, it is in the public interest and necessity to enter into an agreement with Fujitsu; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Mutual Nondisclosure Agreement with Fujitsu, a copy of which is attached hereto as Exhibit A and incorporated by reference. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro-Tem to execute said Agreement for, and on behalf of, the City of Vernon and the City Clerk, or Deputy City Clerk, is hereby authorized to attest thereto. SECTION 4: The City Council of the City of Vernon hereby directs the City Clerk, or her designee, to send a fully executed Agreement to Fujitsu Network Communications, Inc. Attn. Abraham Pucherib, VP Sales 2801 Telecom Parkway Richardson, Texas - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 5: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 13th day of July, 2009. ATTEST: b::,� �2 M NUELA GIRON, City Clerk Name: Hilario Gonzales Title: Mayor �sMa_prn-TPrT �' 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 10017, was duly adopted by the City Council of the City of Vernon at regular meeting of the City Council duly held on Monday, July 13, 2009, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. (SEAL) MANUELA GIRON, CAy Clerk - 4 - EXHIBIT A MUTUAL NONDISCLOSURE AGREEMENT THIS MUTUAL NONDISCLOSURE AGREEMENT (the "Agreement") is by and between Fujitsu Network Communications, Inc., ("FNC"), a California corporation with its principal place of business at 2801 Telecom Parkway, Richardson, Texas, Fax No. 972.479.2992 and City of Vernon ("City") with,a business address of4305 Santa Fe Avenue, Vernon, California 90058, Fax No. FNC qnd the City agree as follows: 1. Purpose. FNC and City anticipate exchanging information regarding FNC's products and services, including without limitation pricing, and City may disclose its equipment requirements, location and topology for the purpose of facilitating a business relationship (the "Purpose"). 2. Confidential Information. "Confidential Information" means information disclosed by either party (the "Discloser") to the other party (the "Recipient') in connection with the Purpose, even if before the Effective Date, or that, although not related to the Purpose, is nevertheless disclosed as a result of the parties' discussions in that regard, and that should reasonably have been understood by the Receiving Party because of legends or other markings, the circumstances of disclosure or the nature of the information itself, to be proprietary and confidential to the Discloser, an Affiliate of the Discloser or to a third party. The term "Affiliate" means any person or entity directly or indirectly controlling, controlled by, or under common control with a party. 3. Effective Date, Termination. The Effective Date of this Agreement is June 4, 2009. This Agreement terminates the earlier of three (3) years after the Effective Date or as terminated by either party upon not less than thirty-(30) days' prior, written notice to the other party. The obligations of Recipient with respect to Confidential Information received prior to termination will survive any termination of this Agreement for aperiod of three (3) years. 4. Restrictions on Disclosure and Use. Recipient may use the Confidential Information solely for the Purpose and will not disclose Confidential Information to any third party. Recipient may disclose the Confidential Information within its corporation only to those having a need to know for the Purpose and having an obligation to protect information as required by this Agreement. Recipient may disclose Confidential Information to an Affiliate or subcontractor which has a need to know for the Purpose and is subject to a written agreement, substantially in accordance with this Agreement, including obligations not to disclose Confidential information and not to use it other than for the Purpose. In no case will Recipient or an Affiliate or subcontractor of Recipient use the Confidential Information other than for the Purpose. City and FNC acknowledge and agree that the other party and/or its Affiliates develop, market and sell (and may develop, market and sell in the future) systems, software, components, devices, and/or other products similar or closely related in functionality to its own products. The parties acknowledge and agree that the inclusion or embodiment of ideas, concepts and techniques in information furnished by one party to the other party under this Agreement will not preclude the Recipient's independent development of products or generic requirements containing or embodying similar ideas, concepts or techniques, so long as Recipient complies with the obligations of this Agreement. 5. Care. Recipient will use the same degree of care in safeguarding the Confidential Information as it uses for its own confidential information of like importance, but no less than reasonable care. Upon discovery of any disclosure or misuse of Confidential Information, Recipient will promptly notify the Discloser and will act to prevent any further disclosure or misuse. 6. Exceptions. Recipient's obligations of confidentiality and restrictions on use will not apply to information that is: (i) known to Recipient before receipt from Discloser without obligations of confidentiality or restrictions on disclosure; (ii) generally available to the public (or becomes so) without the fault or negligence of Recipient; (iii) received by Recipient from a source other than Discloser without breach of an obligation of confidentiality owed to the Discloser, or (iv) independently developed by Recipient without any use of Discloser's Confidential Information. City of Vernon By: Name: _ Title; 7. Required Disclosures. Recipient is permitted to disclose Confidential information as required by law or regulation provided, however, that Recipient will (a) give Discloser written notice promptly upon receipt of a disclosure requirement and before the disclosure is made, (b) take reasonable actions and provide reasonable assistance to the Discloser to secure confidential treatment of the Confidential Information, and (c) disclose only such Confidential Information as is required. 8. Copies.. Recipient will make copies of the Confidential Information only as is necessary for the Purpose. Any copies will reproduce proprietary marking(s) included therein. 9. Return. All Confidential information will remain the property of Discloser, and Recipient will promptly return all copies and excerpts thereof to Discloser upon request, except that Recipient's legal counsel may retain a COPY, for use only as a record of the disclosure. Recipient may choose to destroy such copies and excerpts instead of returning them, with written notice to the Discloser. 10. Export Control. City may not export or re-export directly or indirectly any hardware, software (including source code), technology, or direct products of software or technology to any countries or nationals of any countries except in compliance with the U.S. Export Administration Regulations ("EAR"), as such regulations may change from time to time. Without limiting the generality of the foregoing, City may not, without an export license provided by the U.S. Commerce Department, or license exception provided under the EAR: (i) export or re-export or release software (including source code for the software) or technology to a national of a country in Country Groups D:1 or E, as the lists may change from time to time (see littp•//www access gpo goN,Ibis/ear/pdf/740spir pdf for the current lists of countries) or (ii) export to Country Groups D:1 or E the direct product of software or technology, if the foreign -produced direct product is subject to national security controls identified on the EAR's Commerce Control List. City's obligations under this Section survive the expiration or other termination of this Agreement. 11. Rights Not Granted. Nothing herein will be construed as granting to Recipient any rights, express or implied, in Discloser's Confidential Information, other thatr the right to use it for the Purpose of this Agreement. 12. Right to Disclose. Each party represents to the other that it has the right to disclose the Confidential Information to the other ga= and will indemnify and defend the other party from any claims 13. Entire Agreement. This is the entire agreement between the parties as to the subject matter hereof and supersedes any previous agreements, oral or written, as to its subject matter. It may be modified only by written agreement of the parties. 14. Assignment. This Agreement will not be assigned without written authorization of the other party. 15. Governing Law. This Agreement will be governed by the laws of the State of Texas without regard to its choice of law provisions. 16. Signatures. When the authorized representative of either party signs this Agreement, a copy, duplicate or facsimile of such signed agreement will have the same force and effect as one bearing an original signature. The parties do hereby execute this Agreement as of the Effective Date set forth above. Fujitsu Netwo ommunications, Inc. I By: Name: 'A ti -CL a � 6 L-_Lt & r L V' Title: /"Q�P S 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 July 16, 2009 Fujitsu Network Communications, Inc. Attn: Abraham Pucherib, VP Sales 2801 Telecom Parkway Richardson, TX 75082-3599 Re: Mutual Nondisclosure Agreement Dear Mr. Pucherib: Transmitted herewith is a fully executed agreement as referenced above, approved by City Council on July 13, 2009, through Resolution No. 10,017. If you have any questions regarding this matter, please call Mr. Donal O'Callaghan, at (323) 583-8811 ext. 834. iry truly yours, 1y roj. City Clerk NG:dj c: Donal O'Callaghan Purchasing Department Resolution No. 10,017. Agreement No. 09-099 E Ccfusivefy Industfiaf MUTUAL NONDISCLOSURE AGREEMENT THIS MUTUAL NONDISCLOSURE AGREEMENT (the "Agreement") is by and between Fujitsu Network Communications, Inc., ("FNC"), a California corporation with its principal place of business at 2801 Telecom Parkway, Richardson, Texas, Fax No. 972.479.2992 and City of Vernon ("City") with a business address of4305 Santa Fe Avenue, Vernon, California 90058, Fax No. FNC and the City agree as follows: 1. Purpose. FNC and City anticipate exchanging information regarding FNC's products and services, including without limitation pricing, and City may disclose its equipment requirements, location and topology for the purpose of facilitating a business relationship (the "Purpose"). 2. Confidential Information. "Confidential Information" means information disclosed by either party (the "Discloser") to the other party (the "Recipient") in connection with the Purpose, even if before the Effective Date, or that, although not related to the Purpose, is nevertheless disclosed as a result of the parties' discussions in that regard, and that should reasonably have been understood by the Receiving Party because of legends or other markings, the circumstances of disclosure or the nature ofthe information itself, to be proprietary and confidential to the Discloser, an Affiliate of the Discloser or to a third party. The term "Affiliate" means any person or entity directly or indirectly controlling, controlled by, or under common control with a party. 3. Effective Date, Termination. The Effective Date of this Agreement is June 4, 2009. This Agreement terminates the earlier of three (3) years after the Effective Date or as terminated by either party upon not less than thirty-(30) days' prior, written notice to the other party. The obligations of Recipient with respect to Confidential Information received prior to termination will survive any termination of this Agreement for aperiod of three (3) years. 4. Restrictions on Disclosure and Use. Recipient may use the Confidential Information solely for the Purpose and will not disclose Confidential Information to any third party. Recipient may disclose the Confidential Information within its corporation only to those having a need to know for the Purpose and having an obligation to protect information as required by this Agreement. Recipient may disclose Confidential Information to an Affiliate or subcontractor which has a need to know for the Purpose and is subject to a written agreement, substantially in accordance with this Agreement, including obligations not to disclose Confidential information and not to use it other than for the Purpose. In no case will Recipient or an Affiliate or subcontractor of Recipient use the Confidential Irnformation other than for tine Purpose. City and FNC acknowledge and agree that the other party and/or its Affiliates develop, market and sell (and may develop, market and sell in the future) systems, software, components, devices, and/or other products similar or closely related in functionality to its own products. The parties acknowledge and agree that the inclusion or embodiment of ideas, concepts and techniques in information furnished by one party to the other party under this Agreement will not preclude the Recipient's independent development of products or generic requirements containing or embodying similar ideas, concepts or techniques, so long as Recipient complies with the obligations of this Agreement. 5. Care. Recipient will use the same degree of care in safeguarding the Confidential Information as it uses for its own confidential information of like importance, but no less than reasonable care. Upon discovery of any disclosure or misuse of Confidential Information, Recipient will promptly notify the Discloser and will act to prevent any further disclosure or misuse. 6. Exceptions. Recipient's obligations of confidentiality and restrictions on use will not apply to information that is: (i) known to Recipient before receipt from Discloser without obligations of confidentiality or restrictions on disclosure; (ii) generally available to the public (or becomes so) without the fault or negligence of Recipient; (iii) received by Recipient from a source other than Discloser without breach of an obligation of confidentiality owed to the Discloser; or (iv) independently developed by Recipient without any use of Discloser's Confidential Information. City of Vernon Name: H-i 1 ari o Gonzales Title: 7. Required Disclosures. Recipient is permitted to disclose Confidential Information as required by law or regulation provided, however, that Recipient will (a) give Discloser written notice promptly upon receipt of a disclosure requirement and before the disclosure is made, (b) take reasonable actions and provide reasonable assistance to the Discloser to secure confidential treatment of the Confidential Information, and (c) disclose only such Confidential Information as is required. 8. Copies. Recipient will make copies of the Confidential Information only as is necessary for the Purpose. Any copies will reproduce proprietary marking(s) included therein. 9. Return. All Confidential Information will remain the property of Discloser, and Recipient will promptly return all copies and excerpts thereof to Discloser upon request, except that Recipient's legal counsel may retain a copy, for use only as a record of the disclosure. Recipient may choose to destroy such copies and excerpts instead of returning them, with written notice to the Discloser. r 10. Export Control. City may not export or re-export directly or indirectly any hardware, software (including source code), technology, or direct products of software or technology to any countries or nationals of any countries except in compliance with the U.S. Export Administration Regulations ("EAR"), as such regulations may change from time to time. Without limiting the generality of the foregoing, City may not, without an export license provided by the U.S. Commerce Department, or license exception provided under the EAR: (i) export or re-export or release software (including source code for the software) or technology to a national of a country in Country Groups D:1 or E, as the lists may change from time to time (see http://\v-xviv.access.,qpo.govibis/ear/pdf/740sl)ir.pdf for the current lists of countries) or (ii) export to Country Groups D:1 or E the direct product of software or technology, if the foreign -produced direct product is subject to national security controls identified on the EAR's Commerce Control List. City's obligations under this Section survive the expiration or other tennination of this Agreement. 11. Rights Not Granted. Nothing herein will be construed as granting to Recipient any rights, express or implied, in Discloser's Confidential Information, other than the right to use it for the Purpose ofthis Agreement. 12. Right to Disclose. Each party represents to the other that it has the right to disclose the Confidential Information to the other party and will indemnify and defend the other party from any claims 13. Entire Agreement. This is the entire agreement between the parties as to the subject matter hereof and supersedes any previous agreements, oral or written, as to its subject matter. It may be modified only by written agreement of the parties. 14. Assignment. This Agreement will not be assigned without written authorization of the other patty. 15. Governing Law. This Agreement will be governed by the laws of the State of Texas without regard to its choice of law provisions. 16. Signatures. When the authorized representative of either patty signs this Agreement, a copy, duplicate or facsimile of such signed agreement will have the same force and effect as one bearing an original signature. The parties do hereby execute this Agreement as of the Effective Date set forth above. Fujitsu Netwo k!Communications, Inc. By: G Xf ivul &msLt�) Name: ,A�/ct4 a, Title: ATTE UELA GI N, C1 y elerk AP OVED TO FORM: C' At V rney' RECEIVED �`� JUL 08 2009 OFFICECITY CLERWS DATE: July 7, 2009 TO: FROM: RE: Purpose: LIGHT & POWER Honorable Mayor and City Council f- Donal O'Callaghan, Director of Light & Power �w " 1 L�, ., V, (2/) APPROVED JUL 13 '09 CITY COUNCIL CITi' EILM' ' CJISTRIBUTION Mutual Nondisclosure Agreement By and Between City of Vernon and Fujitsu Network Communications, Inc. The Internet Services Network Monitoring and Management contract with Verizon Select Services has reached the end of its three term. The Fiber Optic Division of. Light & Power is in the process of negotiating a new agreement with Fujitsu Network Communications, Inc, for a new three years term for the same services. As part of the contract services engagement with Fujitsu, it is requested that a Mutual Nondisclosure Agreement by and between the City of Vernon and Fujitsu be entered into in order to exchange information regarding pricing and City's equipment requirement, location and topology for the purpose of facilitating a business relationship. Recommendation: It.is recommended that the City Council approve the enclosed mutual nondisclosure agreement to ensure the two parties can exchange information related to a new Internet Services Agreement. DO: an Attachments C: Eric Fresh Nelly Giron, (originals) Judy Lehr Ali Nour Project Control Document Control DATE: July 7, 2009 TO: Donal O'Callaghan, Director of Light & Power FROM: Ali Nour, Engineering Manager SUBJECT: Mutual Nondisclosure Agreement — By and Between City of Vernon and Fujitsu Network Communications Attached for your review, approval and submission to City Council is an amended Mutual Nondisclosure Agreement by and between City of Vernon and Fujitsu Network Communications. The City Attorney originally approved the agreement as to form, provided minor changes were made to the agreement. Fujitsu accepted our changes, signed and returned the attached nondisclosure agreement. At this time, I request that the two original forms be signed by the City Administrator and attested by City Clerk per our recommendation fully described in the attached Staff Report. Should you need additional information, please let me know. ARN/ Attachments C: Project Control Document Control — Fiber Optics Division MUTUAL NONDISCLOSURE AGREEMENT THIS MUTUAL NONDISCLOSURE AGREEMENT (the "Agreement") is by and between Fujitsu Network Communications, Inc., ("FNC"), a California corporation with its principal place of business at 2801 Telecom Parkway, Richardson, Texas, Fax No. 972.479.2992 and City of Vernon ("City") with a business address of4305 Santa Fe Avenue, Vernon, California 90058, Fax No. FNC and the City agree as follows: 1. Purpose. FNC and City anticipate exchanging information regarding FNC's products and services, including without limitation pricing, and City may disclose its equipment requirements, location and topology for the purpose of facilitating a business relationship (the "Purpose"). 2. Confidential Information. "Confidential Information" means information disclosed by either party (the "Discloser") to the other party (the "Recipient') in connection with the Purpose, even if before the Effective Date, or that, although not related to the Purpose, is nevertheless disclosed as a result of the parties' discussions in that regard, and that should reasonably have been understood by the Receiving Party because of legends or other markings, the circumstances of disclosure or the nature of the information itself, to be proprietary and confidential to the Discloser, an Affiliate of the Discloser or to a third party. The term "Affiliate" means any person or entity directly or indirectly controlling, controlled by, or under common control with a party. 3. Effective Date, Termination. The Effective Date of this Agreement is June 4, 2009. This Agreement terminates the earlier of three (3) years after the Effective Date or as terminated by either party upon not less than thirty-(30) days' prior, written notice to the other party. The obligations of Recipient with respect to Confidential Information received prior to termination will survive any termination of this Agreement for aperiod of three (3) years. 4. Restrictions on Disclosure and Use. Recipient may use the Confidential Information solely for the Purpose and will not disclose Confidential Information to any third party. Recipient may disclose the Confidential Information within its corporation only to those having a need to know for the Purpose and having an obligation to protect information as required by this Agreement. Recipient may disclose Confidential Information to an Affiliate or subcontractor which has a need to know for the Purpose and is subject to a written agreement, substantially in accordance with this Agreement, including obligations not to disclose Confidential Information and not to use it other than for the Purpose. In no case will Recipient or an Affiliate or subcontractor of Recipient use the Confidential Information other than for the Purpose. City and FNC acknowledge and agree that the other party and/or its Affiliates develop, market and sell (and may develop, market and sell in the future) systems, software, components, devices, and/or other products similar or closely related in functionality to its own products. The parties acknowledge and agree that the inclusion or embodiment of ideas, concepts and techniques in information famished by one party to the other party under this Agreement will not preclude the Recipient's independent development of products or generic requirements containing or embodying similar ideas, concepts or techniques, so long as Recipient complies with the obligations of this Agreement. 5. Care. Recipient will use the same degree of care in safeguarding the Confidential Information as it uses for its own confidential information of like importance, but no less than reasonable care. Upon discovery of any disclosure or misuse of Confidential Information, Recipient will promptly notify the Discloser and will act to prevent any further disclosure or misuse. 6. Exceptions. Recipient's obligations of confidentiality and restrictions on use will not apply to information that is: (i) known to Recipient before receipt from Discloser without obligations of confidentiality or restrictions on disclosure; (ii) generally available to the public (or becomes so) without the fault or negligence of Recipient; (iii) received by Recipient from a source other than Discloser without breach of an obligation of confidentiality owed to the Discloser, or (iv) independently developed by Recipient without any use of Discloser's Confidential Information. City of Vernon By: Name: Title: 7. Required Disclosures. Recipient is permitted to disclose Confidential Information as required by law or regulation provided, however, that Recipient will (a) give Discloser written notice promptly upon receipt of a disclosure requirement and before the disclosure is made, (b) take reasonable actions and. provide reasonable assistance to the Discloser to secure confidential treatment of the Confidential Information, and (c) disclose only such Confidential Information as is required. 8. Copies. Recipient will make copies of the Confidential Information only as is necessary for the Purpose. Any copies will reproduce proprietary marking(s) included therein. 9. Return. All Confidential Information will remain the property of Discloser, and Recipient will promptly return all copies and excerpts thereof to Discloser upon request, except that Recipient's legal counsel may retain a copy, for use only as a record of the disclosure. Recipient may choose to destroy such copies and excerpts instead of returning them, with written notice to the Discloser. 10. Export Control. City may not export or re-export directly or indirectly any hardware, software (including source code), technology, or direct products of software or technology to any countries or nationals of any countries except in compliance with the U.S. Export Administration Regulations ("EAR"), as such regulations may change from time to time. Without limiting the generality of the foregoing, City may not, without an export license provided by the U.S. Commerce Department, or license exception provided under the EAR: (i) export or re-export or release software (including source code for the software) or technology to a national of a country in Country Groups D:I or E, as the lists may change from time to time (see http://www.access.gpo.gov/bis/ear/pelf/740spir.pdf for the current lists of countries) or (ii) export to Country Groups D:l or F the direct product of software or technology, if the Foreign -produced direct product is subject to national security controls identified on the EAR's Commerce Control List. City's obligations under this Section survive the ' expiration or other termination of this Agreement. 11. Rights Not Granted. Nothing herein will be construed as granting to Recipient any rights, express or implied, in Discloser's Confidential Information, other than the right to use it for the Purpose of this Agreement. 12. Right to Disclose. Each party represents to the other that it has the right to disclose the Confidential Information to the other party and will indemnify and defend the other party from any claims 13. Entire Agreement. This is the entire agreement between the parties as to the subject matter hereof and supersedes any previous agreements, oral or written, as to its subject matter. It may be modified only by written agreement of the parties. 14. Assignment. This Agreement will not be assigned without written authorization of the other party. 15. Governing Law. This Agreement will be governed by the laws of the State of Texas without regard to its.choice of law provisions. 16. Signatures. When the authorized representative of either party signs this Agreement, a copy, duplicate or facsimile of such signed agreement will have the same force and effect as one bearing an original signature. The patties do hereby execute this Agreement as of the Effective Date set forth above. Fujitsu Netwo Communications, Inc. By. Name: Ati".-CL 6L /CLtPr� Title: V16 rSQ�eS MUTUAL NONDISCLOSURE AGREEMENT THIS MUTUAL NONDISCLOSURE AGREEMENT (the "Agreement") is by and between Fujitsu Network Communications, inc., ("FNC"), a California corporation with its principal place of business at 2801 Telecom Parkway, Richardson, Texas, Fax No. 972.479.2992 and City of Vernon ("City") with a business address of4305 Santa Fe Avenue, Vernon, California 90058, Fax No. FNC and the City agree as follows: 1. Purpose. FNC and City anticipate exchanging information regarding FNC's products and services, including without limitation pricing, and City may disclose its equipment requirements, location and topology for the purpose of facilitating a business relationship (the "Purpose"). 2. Confidential Information. "Confidential Information" means information disclosed by either party (the "Discloser") to the other party (the "Recipient') in connection with the Purpose, even if before the Effective Date, or that, although not related to the Purpose, is nevertheless disclosed as a result of the parties' discussions in that regard, and that should reasonably have been understood by the Receiving Party because of legends or other markings, the circumstances of disclosure or the nature of the information itself, to be proprietary and confidential to the Discloser, an Affiliate of the Discloser or to a third party. The term "Affiliate" means any person or entity directly or indirectly controlling, controlled by, or under common control with a party. 3. Effective Date, Termination. The Effective Date of this Agreement is June 4, 2009. This Agreement terminates the earlier of three (3) years after the Effective Date or as terminated by either party upon not less than thirty-(30) days' prior, written notice to the other party. The obligations of Recipient with respect to Confidential Information received prior to termination will survive any termination of this Agreement for a period of three (3) years. 4. Restrictions on Disclosure and Use. Recipient may use the Confidential Information solely for the Purpose and will not disclose Confidential Information to any third party. Recipient may disclose the Confidential Information within its corporation only to those having a need to know for the Purpose and having an obligation to protect information as required by this Agreement. Recipient may disclose Confidential Information to an Affiliate or subcontractor which has a need to know for the Purpose and is subject to a written agreement, substantially in accordance with this Agreement, including obligations not to disclose Confidential Information and not to use it other than for the Purpose. In no case will Recipient or an Affiliate or subcontractor of Recipient use the Confidential Information other than for the Purpose. City and FNC acknowledge and agree that the other party and/or its Affiliates develop, market and sell (and may develop, market and sell in the future) systems, software, components, devices, and/or other products similar or closely related in functionality to its own products. The parties acknowledge and agree that the inclusion or embodiment of ideas, concepts and techniques in information furnished by one party to the other party under this Agreement will not preclude the Recipient's independent development of products or generic requirements containing or embodying similar ideas, concepts or techniques, so long as Recipient complies with the obligations of this Agreement. 5. Care. Recipient will use the sarne degree of care in safeguarding the Confidential Information as it uses for its own confidential information of like importance, but no less than reasonable care. Upon discovery of any disclosure or misuse of Confidential Information, Recipient will promptly notify the Discloser and will act to prevent any further disclosure or misuse. 6. Exceptions. Recipient's obligations of confidentiality and restrictions on use will not apply to information that is: (i) known to Recipient before receipt from Discloser without obligations of confidentiality or restrictions on disclosure; (ii) generally available to the public (or becomes so) without the fault or negligence of Recipient; (iii) received by Recipient from a source other than Discloser without breach of an obligation of confidentiality owed to the Discloser; or (iv) independently developed by Recipient without any use of Discloser's Confidential Information. City of Vernon By: Name: Title: 7. Required Disclosures. Recipient is permitted to disclose Confidential Information as required by law or regulation provided, however, that Recipient will (a) give Discloser written notice promptly upon receipt of a disclosure requirement and before the disclosure is made, (b) take reasonable actions and provide reasonable assistance to the Discloser to secure confidential treatment of the Confidential Information, and (c) disclose only such Confidential Information as is required. 8. Copies. Recipient will make copies of the Confidential Information only as is necessary for the Purpose. Any copies will reproduce proprietary marking(s) included therein. 9. Return. All Confidential Information will remain the property of Discloser, and Recipient will promptly return all copies and excerpts thereof to Discloser upon request, except that Recipient's legal counsel may retain a copy, for use only as a record of the disclosure. Recipient may choose to destroy such copies and excerpts instead of returning them, with written notice to the Discloser. 10. Export Control. City may not export or re-export directly or indirectly any hardware, software (including source code), technology, or direct products of software or technology to any countries or nationals of any countries except in compliance with the U.S. Export Administration Regulations ("EAR"), as such regulations may change from time to time. Without limiting the generality of the foregoing, City may not, without an export license provided by the U.S. Commerce Department, or license exception provided under the EAR: (i) export or re-export or release software (including source code for the software) or technology to a national of a country in Country Groups D:1 or E, as the lists may change from time to time (see htip://www.access.gpo-gov/bisiearlpdf/740spir.pdf for the current lists of countries) or (ii) export to Country Groups DA or E the direct product of software or technology, if the foreign -produced direct product is subject to national security controls identified on the EAR's Commerce Control List. City's obligations under this Section survive the expiration or other termination of this Agreement. 11. Rights Not Granted. Nothing herein will be construed as granting to Recipient any rights, express or implied, in Discloser's Confidential Information, other than the right to use it for the Purpose of this Agreement. 12. Right to Disclose. Each party represents to the other that it has the right to disclose the Confidential Information to the other arty and will indemnify and defend the other party from any claims 13. Entire Agreement. This is the entire agreement between the parties as to the subject matter hereof and supersedes any previous agreements, oral or written, as to its subject matter. It may be modified only by written agreement of the parties. 14. Assignment. This Agreement will not be assigned without written authorization of the other party. 15. Governing Law. This Agreement will be governed by the laws of the State of Texas without regard to its choice of law provisions. 16. Signatures. When the authorized representative of either party signs this Agreement, a copy, duplicate or facsimile of such signed agreement will have the same force and effect as one bearing an original signature. The parties do hereby execute this Agreement as of the Effective Date set forth above. Fujitsu Netwo k!Communications, Inc. By: 6. ` Name: A 61-CL 4 eL A �U LGt e - t / Title: L/ , Qho