Exhibit 10.1
 
FORM OF
Logistics Agreement

THIS AGREEMENT (this “Agreement”) is made and entered into this ______ day of
_________ 20__ by and between TAG Industries, Inc. (“TAG” or the “Company”)
having its principal place of business at 102 NE 2nd Street, PMB 400, Boca
Raton, FL 33432-3908 U.S.A., and __________________________ ("Logistics
Provider" or “LP”) having its principal place of business at
_________________________________ (collectively, the “Parties”).

1.  
EXCLUSIVE RELATIONSHIP. Company and LP will share an exclusive relationship
related to the attached list of accounts (the “Accounts”) in __________ (the
“Territory”) for all lighting products (the “Products” or “Lighting Products”)
attached hereto as Exhibit A and Exhibit C. Any contemplated commercial
transaction related to the Accounts shall be performed jointly by the Parties.

With the exception of OEM Relationships who may do business in Territory as
defined in Section 12, during the term of this Agreement and without the prior
written consent of LP, the Company agrees not to, and agrees to cause its
affiliates and subsidiaries not to, execute other distribution agreements within
the Territory with individuals or entities different than LP, in connection with
the Accounts for the sale of the Products.

2.  
TERM. This Agreement commences as of the date first written above and continues
in effect for _______ (___) years from the date of this Agreement.  This
Agreement may be terminated at any time by mutual written consent. In the event
LP achieves the minimum volume levels outlined in Exhibit B, LP  will qualify
for an automatic renewal of ______ (____) years. Notwithstanding the forgoing,
TAG at its option may elect to not renew the Agreement in the event LP during
the term of the Agreement or any renewal thereto has not attained in at least
two (2) 12-month Minimum Yearly Volume Levels.

3.  
COMPANY SALES AND BRANDS. Company will sell the ClearLite® brand and direct
import business only through LP in the Territory, to any Account on the approved
list in Exhibit A, subject to the Parties mutual agreement on pricing and
programs.

In the event that the Company, its affiliates or subsidiaries sell Products
directly to the Accounts during the term of this Agreement, the Company shall
pay to LP an amount equal to ______ percent (___%) of the invoiced value of the
Products sold to the Accounts, or transferred by any legal title in default of
this clause.

The Company agrees to abstain from selling the Products to the agents,
distributors or factors of LP who carry out sales to the Accounts once the
Company receives notification from LP on the identification of such agency,
individuals or factors, following the notification, the Company shall pay to LP
the amounts described in the prior paragraph for the sales carried out in
contravention of this paragraph, as from the date on which the notification was
delivered by LP to the Company and until such sales cease.
 
 
1

--------------------------------------------------------------------------------

 
 
4.  
ACCOUNT CHANGES. Any changes to the Accounts and Territory listed on Exhibit A
shall require mutual approval in writing by the Parties.

CUSTOMER PURCHASES. All customer purchases will be placed directly with LP
subject to LP’s final approval(s). TAG will offer a defective allowance in lieu
of returns of _______ percent (___%).

5.  
COMPANY RESPONSIBILTIES.

a.  
Company will provide all the product sourcing, marketing strategies and Company
approved independent sales agencies.

b.  
All orders will be based on approved pricing provided to LP from TAG.

c.  
LP will place all orders with TAG using a Transferable Irrevocable Domestic
Letter of Credit (“LC” or the “Letter of Credit”) in US Dollars.

d.  
Upon receipt of an official order from LP, TAG will notify the factory within
__________ business of order receipt provided that: (1) the order has been
authorized and approved by both parties, (2) includes a Letter of Credit
approved by TAG, TAG’s bank, and the factory in US dollars. Then, the Product
will go into production.

e.  
Make available the services of a sales representative by personal visit, email,
fax, or telephone to provide Product information, merchandising and general
sales support as required by LP.

f.  
Provide LP with Product information, literature and sales materials (in
quantities agreed to by the Company and LP) designed to aid LP in the
introduction and sale of Products.

g.  
Share market intelligence, information, and reports that may assist LP in its
sales of the Products.

6.  
LP RESPONSBILITIES.

a.  
LP will perform all the logistics for activities related to fulfillment and
distribution including, without limitation, billing, shipping, Electronic Data
Interchange (EDI), and importing of product.

b.  
LP will be responsible for transportation, duty, etc. when importing these
products.

c.  
LP shall furnish Company with monthly statements indicating all sales-related
transactions during the preceding month and the extent of current inventory.
Such statements shall be delivered electronically no later than the seventh
(7th) day of each month in Microsoft Excel and PDF formats.

7.  
LETTER OF CREDIT DISCOUNT. LP will receive a ______ percent (___%) Discount for
the above mentioned Letter of Credit in US Dollars. As reflected in current
price sheets, it will be netted out from Net Freight On Board  (FOB shipping
point) Orient pricing and current authorized price quotes.

 
 
2

--------------------------------------------------------------------------------

 
 
8.  
PRICING AND PROGRAMS.

a.  
Any account pricing and programs will be approved by LP before they can be
considered official. All Accounts will require LP's approval for billing and
invoicing terms and programs.

b.  
Company has provided to LP “Net/Net/Net/Net pricing” (e.g. less marketing
programs and other customary allowances including freight, defective allowance,
discount for Letter of Credit, holdbacks and returns) that will allow LP to
accrue a ______ percent (___%) defective allowance in lieu of returns, based on
their customers invoice cost.

c.  
Currently, there have been no pricing protections offered from factories in the
lighting industry. In the event TAG receives price protection from a factory,
TAG will notify LP of such change.

d.  
Products will be ordered pursuant to purchase orders submitted to the Company by
LP. All such purchase orders shall be governed by the provisions of this
Agreement. The Company may discontinue the production or sale of any Product at
any time during the term of this Agreement with ______ (____) days prior notice
to the date on which the supply of any such Products will cease. Likewise, if
the Product to be discontinued does not have a substitute, the Minimum Volume
Levels will be reduced proportionally to the discontinued product; provided
however, that LP makes available a schedule of products to be purchased each and
every calendar year, so TAG understands the potential volume disruptions that
may occur in the future.

e.  
LP shall unilaterally establish its own resale prices and terms with respect to
the resale of Products.

f.  
Currently, TAG has no return privileges from the factory. Hence, TAG is unable
to offer them to LP unless mutually agreed and approved in writing.

9.  
LP MINIMUM VOLUME LEVELS. Minimum volume levels for LP are outlined in Exhibit
B.

LP is bound to comply with the aforementioned Minimum Volume Levels.
Notwithstanding the foregoing, if a non-compliance derives from an Act of God,
force majeure or any cause not directly attributable to LP (including lack of
raw materials and problems in the production of the Products ), the Minimum
Volume Levels will be reduced in the same amount of this non-compliance and they
will not be considered for computing the non-compliance percentage of the
correspondent period in terms of Section 2 of this Agreement.

10.  
ASSIGNABILITY. Neither this Agreement nor any interest herein may be assigned,
in whole or in part, by either Party without the prior written consent of the
other Party and any purported assignment made in violation of this Clause shall
be void; provided, however, that each Party hereto shall have the right to
assign this Agreement to any entity which, by way of: (i) merger, or (ii)
consolidation, or (iii) the acquisition of substantially all of the entire
business and assets of the assigning Party relating to the subject matter of
this Agreement, succeeds to the interest in the program of the assigning
Party.  Such consent shall not be unreasonably withheld, so long as such
assignment does not materially affect the nature and the scope of the rights and
benefits due the non-assigning Party under the terms of this Agreement.  The
assigning Party shall expressly require its assignee to assume all of the
assigning Party's obligations and liabilities under this Agreement.

 
 
3

--------------------------------------------------------------------------------

 
 
11.  
OEM RELATIONSHIPS. This Agreement does not include Original Equipment
Manufacturer (“OEM”) relationships unless mutually agreed upon in writing.

12.  
GOVERNING LAW AND JURISDICTION. Any claim or action under this Agreement shall
be governed and construed in accordance with the laws of the United States,
specifically the State of Florida, without reference to its conflicts of law
principles.  The United Nations Convention on Contracts for the International
Sale of Goods shall not apply to this Agreement.  In any action, dispute or
controversy arising either directly or indirectly, under or in connection with
this Agreement, the parties hereby consent and submit to binding arbitration
before the American Arbitration Association in Miami, Florida under its
expedited dispute resolution procedures under the Commercial Rules.

13.  
ATTORNEY'S FEES. In any arbitration or litigation brought under this Agreement
or relating to any alleged breach of this Agreement, the prevailing party shall
be entitled to recover, in addition to all damages suffered, its reasonable
attorneys' fees and costs.

14.  
FURTHER ASSURANCES. Each of the parties hereto, upon the reasonable request of
the other party, shall perform all acts and execute and deliver all documents as
may be reasonably necessary or appropriate to carry out the provisions and
intent of this Agreement.

15.  
TIME IS OF THE ESSENCE.  Time is of the essence with respect to all provisions
of this Agreement that specify a time for performance; provided, however, that
the foregoing shall not be construed to limit or deprive a party of the benefits
of any grace or use period allowed in this Agreement.

16.  
CIVIL LIABILITY. Each party hereto (in this capacity the “Liable Party”) shall
hold harmless and will indemnify the other party (in this capacity the
“Indemnified Party”) for any and all claims, actions, demands and generally any
claim against the Indemnified Party in connection with acts or omission by the
Liable Party, its representatives, officers, employees, workers, agents or
independent advisors. TAG shall also indemnify LP in any event of liability,
civil, criminal or otherwise, in connection with the Products or the
Intellectual Property associated to the Products.

 
 
4

--------------------------------------------------------------------------------

 

17.  
SEVERABILITY. The provisions of this Agreement shall be deemed severable and the
invalidity or unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.

18.  
COUNTERPARTS. This Agreement may be executed in counterparts, each of which
shall be deemed an original but all of which shall constitute one and the same
instrument.

19.  
CONFIDENTIALITY.  The parties shall not disclose to others or use, whether
directly or indirectly, any Confidential Information regarding the other party,
except (i) as in good faith deemed necessary by them to perform their duties
hereunder, (ii) to enforce any rights or defend any claims hereunder or under
any other agreement to which they are a party, provided that such disclosure is
relevant to the enforcement of such rights or defense of such claims and is only
disclosed in the formal proceedings related thereto, (iii) when required to do
so by a court of law, by any governmental agency having supervisory authority
over the business of the Parties or by any administrative or legislative body
(including a committee thereof) with jurisdiction to order any of them to
divulge, disclose or make accessible such information, provided that they shall
give prompt written notice to the other party of such requirement, disclose no
more information than is so required, and cooperate with any attempts by the
corresponding party to obtain a protective order or similar treatment, (iv) as
to such Confidential Information that shall have become public or known to the
general public in the Company's industry other than by any parties’ unauthorized
disclosure, or (v) to the parties' attorney and/or tax and financial advisors as
reasonably necessary or appropriate to advance tax, financial and other planning
(each an “Exempt Person”), provided, however, that any disclosure or use of
Confidential Information by an Exempt Person shall be deemed to be a breach of
this Section 20 by the parties. The parties  shall take all reasonable steps to
safeguard the Confidential Information and to protect it against disclosure,
misuse, espionage, loss and theft.  The parties understand and agree that they
shall acquire no rights to any such Confidential Information. “Confidential
Information” shall mean information about either parties’ Company, their
subsidiaries and affiliates, and their respective manufacturers, suppliers,
customers, and vendors that was learned by the parties during the course of this
Agreement, including, but not limited to, any proprietary knowledge, trade
secrets, data and databases, formulae, sales, financial, marketing, training and
technical information, factory, manufacturer, customer, supplier and vendor
lists, competitive strategies, computer programs and all papers, resumes, and
records (including computer records) of the documents containing such
Confidential Information.

20.  
NOTICES. For the purpose of this Agreement, notices and all other communications
provided for in this Agreement shall be in writing and shall be deemed to have
been duly given (1) on the date of delivery if delivered by hand, (2) on the
date of transmission, if delivered by confirmed facsimile, (3) on the first
business day following the date of deposit if delivered by guaranteed overnight
delivery service, or (4) on the fourth business day following the date delivered
or mailed by registered or certified mail, return receipt requested, postage
prepaid, addressed as follows:

 
 
5

--------------------------------------------------------------------------------

 
 
If to LP:
_____________________________________________________ 
Point of Contact:
________________________________________                                                                                        
Address
_____________________________________________________
_____________________________________________________
City, State/Province,
County                                                                 
_____________________________________________________
Tel:_______________________________________________                                                                                         
Fax:
______________________________________________                                                                                        

If to the Company:

TAG Industries, Inc.
Thomas J. Irvine
102 NE 2nd Street, Suite 400
Boca Raton, Florida 33432-3908 U.S.A.
Tel: (561) 544-6966
Fax: (561) 852-2322

21.  
NON-DISPARAGEMENT. Both parties agree they shall not, and shall not induce
others to, Disparage either party or its subsidiaries or affiliates or their
past and present officers, directors, employees or products. “Disparage” shall
mean making comments or statements to the press, either party or its
subsidiaries' or affiliates' employees or any individual or entity with whom
either party or its subsidiaries or affiliates has a business relationship which
would adversely affect in any manner (1) the business of either party or its
subsidiaries or affiliates (including any products or business plans or
prospects), or (2) the business reputation of either party or its subsidiaries
or affiliates, or any of their products, or their past or present officers,
directors or employees.

22.  
NON-SOLICITATION OF FACTORIES. Both parties agrees that, they will not, directly
or indirectly, solicit or attempt to solicit (i) any party who is a manufacturer
or supplier of any of them or their subsidiaries, who was a manufacturer or
supplier of them or its subsidiaries at any time during the twenty four (24)
month period immediately prior to the date the Agreement terminates or who is a
prospective manufacturer or supplier that has been identified and targeted by
any of them or their subsidiaries for the purpose of marketing, selling or
providing to any such party any services or products offered by or available
from the other party  or their subsidiaries, or (ii) any vendor to any of them
or any subsidiary to terminate, reduce or alter negatively its relationship with
them or any subsidiary or in any manner interfere with any agreement or contract
between such party or any subsidiary and such vendor.

 
 
6

--------------------------------------------------------------------------------

 
 
23.  
TRADEMARKS. During the term of the Agreement, TAG authorizes LP the use of its
trademarks but only for purposes of the promotion, sale and distribution of
Products within the Territory. LP shall clearly indicate, when used, that the
trademarks are registered by TAG. LP may also present itself as an authorized
distributorship of the Products.

a.  
Trademark registration. LP acknowledges that all trademarks, including all
commercial names, commercial advertisements, brands, logos, designs, patents,
copyrights, and any other intellectual property rights used or included in the
Products (described in exhibit D and hereinafter “Intellectual Property”) are
and shall remain the exclusive property of TAG. LP shall not acquire any title
to the Intellectual Property. TAG shall notify LP of any addition to exhibit D
of Intellectual Property. LP shall not file directly or indirectly any
application before any authority of any of the Intellectual Property described
in exhibit D.

24.  
LANGUAGE. This agreement is executed in ____________ and in English versions. In
any event of conflict between the two versions the English version shall
prevail.

25.  
ENTIRE AGREEMENT. This Agreement contains the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior
agreements, written or oral, with respect thereto. No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly set
forth in this Agreement.  This Agreement shall not be modified by any oral
representation made before or after the execution of this Agreement. All
modifications must be in writing and signed by the parties.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective duly authorized officers.

______________________________________
 
By:____________________________________
Name: ________________________________
Title: _________________________________
TAG INDUSTRIES, INC.
 
 
By:_________________________________
Name: Thomas J. Irvine
Title:  President & CEO

 
 
7

--------------------------------------------------------------------------------

 
 
EXHIBIT A

[EXCLUSIVE RELATIONSHIP FOR ATTACHED LIST OF ACCOUNTS BELOW IN TERRITORY]
 
 
 
8

--------------------------------------------------------------------------------

 

 
EXHIBIT B

[MINIMUM VOLUME LEVELS FOR LP]

TABLE 1
LP Minimum Volume Levels
YEARS 1, 2, 3, 4, and 5
(all figures below in US Dollars)
Year 1
Year 2
Year 3
$________________
$_______________
$________________

 
 
9

--------------------------------------------------------------------------------

 
 
EXHIBIT C

[EXCLUSIVE RELATIONSHIP FOR ATTACHED LIST OF LIGHTING PRODUCTS BELOW]

1.  
ClearLite branded products (per current price sheets)

 
 
10

--------------------------------------------------------------------------------

 
 
EXHIBIT D

[INTELLECTUAL PROPERTY]

[TRADEMARKS]

The following TAG trademarks include, but not limited to:

CLEARLITE
ARMORLITE
ARMORBULB

 
11