CONDUCTUS INC
EX-10.38
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<TYPE>EX-10.38
<SEQUENCE>4
<FILENAME>j3619_ex10d38.htm
<DESCRIPTION>EX-10.38
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT 10.38</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Amendment 2 to the<br>

License Agreement<br>

Dated May 4, 1999<br>

Between<br>

General Dynamics Information Systems, Inc. (&#147;GDIS&#148;)<br>

and<br>

Conductus, Inc. (&#147;Conductus&#148;)</font></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Reserved Rights and Limitations

of Conductus</u> is amended to read as follows:</font></p>



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<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Bids

Separate From GDIS</u>. Conductus will not bid independently of GDIS on

Government Contracts which are (a) contracts for the delivery of hardware

(except as provided in Section 3.3.4); (b) offered for bidding directly to GDIS

by a government customer; (c) contracts for which GDIS can provide technical

competencies which Conductus does not possess; (d) contracts for which GDIS has

access to customer or application information which Conductus does not possess

or (e) contracts which would benefit from GDIS project management competencies

which Conductus does not possess.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Government

Contracts</u>. Notwithstanding the foregoing, Conductus may bid independently

of GDIS for Government Contracts which are for (a) Small Business Innovative

Research (&#147;SBIR&#148;) awards; (b) Category 6.1 solicitations as defined under DFAR

235.001; or (c) opportunities GDIS elects to pursue with a subcontractor other

than Conductus.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Special

Considerations</u>.&#160; GDIS will promptly

review all opportunities under Section 3.3.1 (a) for competitive pricing

purposes.&#160; GDIS may choose to allow

Conductus to bid directly on a given opportunity, particularly those involving

delivery of hardware for which GDIS provides no substantial contribution.&#160; In such a case, GDIS will indicate its preference

to bid within two business days after receipt of a written request from

Conductus.&#160; If Conductus receives a

contract for the delivery of hardware under this Section 3.3.3, it will pay

GDIS a royalty equal to a sixteen and two-thirds percent (16.67%) of the

purchase order or contract received from the customer.&#160; Payment of the royalty shall be due thirty

(30) days after Conductus receives payment for the hardware.</p>



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<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Conductus

Referral Rights</u>.&#160; Notwithstanding

any other provision of this Agreement, Conductus may bid separately on

Government Contracts that GDIS elects not to pursue.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties

hereto have caused this Amendment to be executed this 9th day of August, 2000.</font></p>



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<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

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  <td width="29%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:29.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CONDUCTUS,

  INC.</font></p>

  </td>

  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="59%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:59.22%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">GENERAL

  DYNAMICS</font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.04%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="top" style="padding:0in .7pt 0in .7pt;width:23.52%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="59%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:59.22%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Government

  Systems Corporation</font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.04%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="top" style="padding:0in .7pt 0in .7pt;width:23.52%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="59%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:59.22%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">General

  Dynamics Electronic Systems</font></p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.04%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="top" style="padding:0in .7pt 0in .7pt;width:23.52%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.08%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="51%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:51.14%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.04%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="23%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:23.52%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Ron

  Wilderink</font></p>

  </td>

  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.08%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="23%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:23.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Ed

  Reioux</font></p>

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  <td width="27%" valign="top" style="padding:0in .7pt 0in .7pt;width:27.84%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.04%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:23.52%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ron

  Wilderink</font></p>

  </td>

  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.08%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="51%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:51.14%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ed Reioux</font></p>

  </td>

 </tr>

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  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.04%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="top" style="padding:0in .7pt 0in .7pt;width:23.52%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VP Finance

  and CFO</font></p>

  </td>

  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.08%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="51%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:51.14%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sr.

  Subcontract Administrator</font></p>

  </td>

 </tr>

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  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.04%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="23%" valign="top" style="padding:0in .7pt 0in .7pt;width:23.52%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.08%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="51%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:51.14%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.04%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:</font></p>

  </td>

  <td width="23%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:23.52%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8/9/00</font></p>

  </td>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.08%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:</font></p>

  </td>

  <td width="23%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:23.3%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8/9/00</font></p>

  </td>

  <td width="27%" valign="top" style="padding:0in .7pt 0in .7pt;width:27.84%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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