Document:

Branch County Federal Savings & Loan Association of Coldwater

Employment Agreement

              THIS AGREEMENT entered into this 20th day of March, 2002, by and between Branch
County Federal Savings & Loan Association of Coldwater and all of its subsidiaries and affiliated
corporations or associations, located at 375 North Willowbrook Road, Coldwater, Michigan 49036
(collectively referred to as the "Bank"), and John R. Schroll ("Executive").

              WHEREAS, the Executive is currently serving as President and Chief Executive Officer of the
Bank; and

              WHEREAS, the Bank has adopted a plan of conversion whereby the Bank will convert to
capital stock form as the subsidiary of a holding company (the "Holding Company"), subject to the
approval of the Bank's members and the Office of Thrift Supervision (the "Conversion"); and

              WHEREAS, the Board of Directors of the Bank believes it is in the best interests of the Bank to
enter into this Agreement with the Executive in order to assure continuity of management of the Bank
and to reinforce and encourage the continued attention and dedication of the Executive; and

              	WHEREAS, the Board of Directors of the Bank has approved and authorized the execution of
this Agreement with the Executive to take effect as stated in Section 7 hereof.

              NOW, THEREFORE, in consideration of the mutual covenants herein contained, and upon the
other terms and conditions hereinafter provided, the parties hereby agree as follows:

              1.       Employment; Duties.  During the term of this Agreement, which is effective as of the date
first written above (the "Commencement Date"), Executive shall serve in the capacity of President and
Chief Executive Officer of the Bank.  Executive shall perform services and discharge the duties of the
President and Chief Executive Officer of the Bank and perform such other reasonable services and
duties of an executive, professional or administrative nature as may from time to time be assigned to
him by the Board of Directors for the Bank (the "Board of Directors" or "Board") or the Executive
Committee of the Board.  The Executive hereby accepts such employment for the compensation and
upon the terms and conditions provided in this Agreement.  The Executive agrees to serve the Bank
faithfully and competently and to devote his full-time efforts to the promotion of the business of the
Bank and the affairs of the Bank, excepting his reasonable leave time, periods of illness and the like.

              2.       Service on the Board of Directors.  During the term of this Agreement, Executive will
continue to serve on the Board of Directors of the Bank as a director.  If at any time during the term of
this Agreement Executive shall fail to be re-elected to the Board of Directors, Executive shall have
"Good Reason" (as defined in Section 9(e) of this Agreement) to terminate his employment under this
Agreement and Executive shall have no further obligations under this Agreement.  Executive shall be
entitled to receive fees for serving as a member of the Board of Directors and as a member of any
committee of the Board of Directors in amounts equal to the other members of the Board of Directors
who do not serve as Chairman of the Board of Directors.  Board fees paid to Executive shall be in
addition to and not in lieu of any other remuneration provided under this Agreement.

              3.       Base Salary.  The Bank agrees to pay Executive during the Term of this Agreement (as
hereinafter defined in Section 7) a base salary at the rate of $119,000 per annum, payable in accordance

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with the customary payroll practices of the Bank; provided, however, that the rate of Executive's base
salary shall be reviewed by the Board of Directors not less often than annually, and Executive shall be
entitled to receive annual increases at such percentage or in such an amount, if any, as the Board of
Directors, in its sole discretion may decide.

              4.       Discretionary  Bonus.  Executive shall be entitled to receive an annual discretionary bonus in
an amount which is based on the bonus program maintained by the Bank pursuant to the terms and
conditions of the bonus program then in effect.  No other compensation provided for in this Agreement
shall be deemed a substitute for Executive's eligibility to receive bonuses when and as declared by the
Board of Directors or as provided for by any plan or program of the Bank.

              5.       Expenses.  During the term of this Agreement, Executive shall be entitled to receive prompt
reimbursement of all reasonable expenses incurred (in accordance with the policies and procedures of
the Bank) in performing services under this Agreement, provided that Executive properly accounts for
expenses in accordance with the policies of the Bank. 

              6.       Employee Benefits.

                            (a)       Participation in Employee Benefit Plans.  Executive shall participate, while employed
under the terms of this Agreement, in all employee benefit plans or arrangements on the same terms as
other senior management employees of the  Bank.

                            (b)       Fringe Benefits.  Executive shall be entitled to receive any benefits under any fringe
benefit plan or policy on the same terms as other senior management employees of the Bank.  Nothing
paid to Executive under any plan or arrangement presently in effect or made available in the future will
be deemed to be in lieu of base salary or other compensation to Executive under this Agreement.

                            (c)       Automobile, Cellular Phone Use, and Computer.  The Bank shall provide Executive
with, and Executive shall have the primary use of, an automobile owned by the Bank and the Bank
shall pay (or reimburse Executive) for all expenses of insurance, registration, operation and
maintenance of the automobile.  Executive shall comply with reasonable reporting and expense
limitations on the use of such automobile as the Board of Directors may establish from time to time,
and the Bank shall annually include on Executive's Form W-2 any amount attributable to Executive's
personal use of such automobile.  The Bank shall also provide Executive with the use of a cellular
phone and shall pay (or reimburse Executive) for all reasonable expenses related to the business use of
such phone.  The Bank shall also provide Executive with the use of a personal digital assistant or
similar device, and home, portable, and office computers and shall pay (or reimburse Executive) for all
reasonable expenses related to the business use of such computers or devices.

                            (d)       Paid Leave Time.  Executive shall be entitled to leave time in accordance with the
standard policies or practices of the Bank for senior management officers plus six days, but in no event
less than 36 days of leave time during each year of employment.  Executive shall take any leave in
excess of a two week period at a time mutually agreed upon between the Chairman of the Board of the
Bank and Executive.  Executive shall receive his base salary and other benefits during periods of leave.
Executive shall also be entitled to paid legal holidays in accordance with the policies of the Bank.  

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                            (e)       Conferences and Continuing Education.  The Executive shall be permitted to attend, at
his choice, all appropriate industry-wide and statewide savings institution conventions and professional
development meetings necessary to keep the Executive abreast of developments in the industry.
Executive shall be entitled to extend the attendance of one such meeting per year for a period not to
exceed four (4) days, and also the Saturday of the Annual Michigan League Convention.  All expenses
of attending such meetings, including the attendance by the Executive's spouse, shall be at the expense
of the Bank. 

              7.       Term of Agreement.  The term of this Agreement shall be for two (2) years, beginning on the
Commencement Date, unless terminated earlier in accordance with Section 9.  On the first anniversary
of the Commencement Date, and on each anniversary date thereafter, this Agreement shall be extended
for an additional one year term in addition to the then remaining term of employment under this
Agreement unless either party provides to the other party a written notice in accordance with Section
15 which states the clear intention of that party to not renew this Agreement.  Such a notice must be
sent to the other party no less than sixty (60) days prior to the date on which the term of employment
under this Agreement would otherwise be extended.  Notwithstanding the above, the term of this
Agreement shall not be automatically extended unless, prior thereto, the Board of Directors of the
Bank explicitly reviews and approves the extension.  

              8.       Noncompetition, Confidentiality and Non-Solicitation.

                            (a)       Executive shall devote his full time and attention to the performance of his employment
under this Agreement.  Upon any termination of Executive's employment hereunder (other than a
termination which occurs pursuant to Sections 9(a) or 9(e)), Executive agrees not to compete with the
Bank for a period of one (1) year following such termination in any county in which Executive's
normal business office is located or in which the Bank has an office or has filed an application for
regulatory approval to establish an office, determined as of the effective date of such termination,
except as agreed to pursuant to a resolution duly adopted by the Board of Directors.  Executive agrees
that during such period and within said counties, Executive shall not work for or advise, consult or
otherwise serve, directly or indirectly, or have a material financial interest in any entity whose business
is similar to or which materially competes with the business activities of the Bank.  Executive
represents and admits that in the event employment with the Bank is terminated, Executive's
experience and capabilities are such that Executive can obtain employment in a business engaged in
other lines and/or of a different nature than the Bank, and that injunctive relief enforcing this provision
will not prevent Executive from earning a livelihood.

                            (b)       Executive recognizes and acknowledges that the knowledge of customers, potential
customers, trade secrets, business strategies, financial data, costs, prices, other business marketing
information and business activities and plans of the Bank is a valuable, special and unique asset of the
business of the Bank.  Executive will not, during or after the term of his employment, disclose any
such information to any person, firm, corporation, or other entity for any reason or purpose whatsoever.
Notwithstanding the foregoing, Executive may disclose any knowledge of banking, financial and/or
economic principles, concepts or ideas which are not solely and exclusively derived from the business
plans and activities of the Bank.  Further, Executive may disclose information regarding the business
activities of the Bank to the OTS or other regulatory or judicial body pursuant to a formal regulatory
request or subpoena, and Executive also may disclose Bank information when such disclosure, in the
reasonable judgment of Executive, is in the best interest of the Bank and does not violate any law or

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regulation, including but not limited to disclosure to business or trade associations or industry
organizations of which Bank is a member or a participant. 

                            (c)       Executive shall be permitted to invest in entities which conduct business similar to that
of the Bank, solely as a passive or minority investor.

                            (d)       During the term of employment and for one year thereafter Executive will not (other
than on behalf of the Bank) directly or indirectly, offer employment to or employ any person for an
entity other than the Bank, who is employed by the Bank or was employed by the Bank within six
months of Executive's termination of employment.  Nothing in this Agreement, however, restricts
Executive from providing to a third party an oral or written recommendation for or an evaluation of an
employee of the Bank following the termination of that employee's employment with the Bank.

                            (e)       The parties hereto, recognizing that irreparable injury will result to the Bank in the
event of Executive's breach of any provision of this Section 8, agree that in the event of any such
breach by the Executive, the Bank will be entitled to preliminary and permanent injunctive relief of the
Executive, Executive's partners, agents, employees and all persons acting for or under  the direction of Executive.

              9.       Termination.

              Executive's employment under this Agreement shall be terminated upon any of the following
occurrences:

                            (a)       Death.  Executive's employment under this Agreement shall terminate upon his death.
Executive's estate shall be entitled to receive payments of base salary for sixty (60) days following
Executive's death and any other compensation accrued as of the date of death.  

                            (b)       Termination of Employment by the Board of Directors Without Cause.  In the event the
Board of Directors terminates Executive's employment without "Cause" (as defined in Section 9(d)),
Executive shall be entitled to his Base Salary (Section 3), Discretionary Bonus (Section 4), the transfer
to Executive of the ownership and title, without cost and free of all claims of Bank and liens, of the
automobile described in Section 6(c) (which shall be reported on Form 1099) provided that Executive
shall assume all vehicle fuel, insurance, maintenance and repair expense incurred after the date of the
transfer, and those employee benefits described in Sections 6(a) and 6(b), for the longer of:  the
remainder of the term of this Agreement, or twelve (12) months from the date the Bank provides notice
to the Executive.  Such notice shall be given as provided by Section 15.

                            (c)       Disability.

                                           (i)       If, as a result of Executive's incapacity, due to physical or mental illness
rendering him unable to perform the duties required of him under this
Agreement for a period of 90 days in a 120-day period, and within thirty (30)
days after written notice of potential termination is given, he shall not have
returned to the full-time performance of his duties, the Bank may terminate
Executive's employment for "Disability".  The determination of "incapacity due
to physical or mental illness" shall be made by a medical board certified
physician mutually acceptable to the Bank and Executive (or Executive's legal
representative, if one has been appointed), and if the parties cannot mutually
agree to the selection of a physician, then each party shall select a physician and

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the two physicians selected shall select a third physician who shall make this
determination.

                                          (ii)       During any period of disability, Executive shall receive benefits from the Bank's
disability insurance policy in lieu of his base salary after the waiting period has
been satisfied.  The Bank shall continue Executive's Base Salary during the
waiting period for the disability insurance. If the Executive's disability pay
during the first ninety (90) days is less than seventy percent (70%) of his Base
Salary, the Bank shall supplement such disability pay to a level not less than
seventy percent (70%) of his Base Salary.

                                          (iii)       To the extent consistent with the terms and conditions of such insurance plans,
the Bank shall cause to be continued life, medical, dental and disability
insurance coverages maintained by the Bank for other senior management
employees.  These coverages shall cease upon the earlier of:  (A) the date
Executive attains the normal age of retirement or the commencement of benefits
under the Bank's retirement plan, (B) the date of Executive's death or (C) the
termination of this Agreement.

                            (d)       Termination of Employment by the Board of Directors for Cause.  In the event
Executive's employment is terminated for "Cause," no continued payments or benefits shall be due
under this Agreement.  For purposes of this Agreement, termination for "Cause" shall be defined as
termination due to Executive's personal dishonesty, incompetence, willful misconduct, breach of
fiduciary duty involving personal profit, intentional failure to perform stated duties, or to follow one or
more specific written directives of the Board, reasonable in nature and scope, willful violation of any
law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order,
or material breach of any provision of this Agreement (which is not cured within thirty (30) days after
its occurrence and notice to Executive).  Any determination of "Cause" as defined by this Section 9(d)
shall be determined by a 2/3 vote of the Board of Directors, with Executive abstaining from voting on
the matter.

                            (e)       Termination by Executive.  

                            (i)       If this Agreement is terminated by Executive for "Good Reason," the Executive
shall be entitled to his Base Salary (Section 3), Discretionary Bonus (Section 4)
and those employee benefits described in Sections 6(a) and 6(b) for the
remainder of the term of this Agreement, if the Executive provides notice to the
Chairman of the Board of Directors specifying the facts and circumstances
surrounding his belief that "Good Reason" exists and if those matters are not
cured in thirty (30) days from the date of notice.  Such notice shall be given as
provided by Section 15.

                                   	For purposes of this Agreement, "Good Reason" shall be limited to the
occurrence of any of the following events which have not been consented to in
advance by Executive in writing: (A) if Executive would be required to move
his personal residence or perform his principal executive functions more than
twenty-five (25) miles from Executive's primary office as of the Commencement
Date; (B) if, in the organizational structure of the Bank, Executive would be
required to report to a person or persons other than the Board of Directors; (C) if

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the Bank should fail to maintain Executive's Base Salary (Section 3) or fail to
maintain employee benefit plans or arrangements generally comparable to those
in place at the Commencement Date, except to the extent that such reduction in
employee benefit plans is part of an overall adjustment in benefits for all
employees of the Bank and the Executive is otherwise compensated for such an
overall adjustment in an equitable manner; (D) if Executive would be assigned
substantial duties and responsibilities other than those normally associated with
his position as referenced in Section 1 of this Agreement; or (E) if Executive is
removed from or not re-elected to the Board of Directors.  The preceding events
shall only provide the basis for "Good Reason" if Executive provides notice of
them within one hundred twenty (120) days of the occurrence.

                                          (ii)       If Executive terminates this Agreement because there has been a Change in
Control (as defined in Section 10) and if any of the events described in Sections
9(e)(i)(A)-(E) occur without the advance written consent of Executive, the
Executive shall be provided an amount equal to the maximum amount allowable
under Internal Revenue Code Section 280G without the imposition of the 20%
excise tax (concerning "excess parachute payments" to key employees), minus
one dollar.  Executive shall receive this amount either in a lump sum or in
installments, at Executive's option.  If Executive should elect installment
payments and die before all payments are made, then all further payments shall
be made to Executive's estate.

                                          (iii)       If Executive terminates this Agreement, other than for Good Reason and he
provides at least 60 days written notice to the Board of Directors, Executive
shall receive only the Base Salary, vested rights, and all employee benefits up to
Executive's termination date.

                            (f)       Termination Upon Mutual Agreement.  This Agreement can be terminated at any time
upon the mutual written consent of Executive and the Bank, acting through its Chairman of the Board.
Upon such termination, Executive's right to all compensation and benefits ceases.

              10.       Change in Control.

                          For purposes of this Agreement, a Change in Control of the Bank shall be deemed to have
occurred if and when:

                            (a)       there occurs a change in control of the Bank within the meaning of the Home
Owners Loan Act of 1933 or 12 C.F.R. Part 574; 

                            (b)       as a result of, or in connection with, any merger or other business combination,
sale of assets or contested election, wherein the persons who were non-employee
directors of the Bank before such transaction or event cease to constitute a
majority of the Board of Directors of the Bank or any successor to the Bank; 

                            (c)       the Bank transfers substantially all of its assets to another corporation or entity
which is not an affiliate of the Bank; or

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                            (d)       the Bank is merged or consolidated with another corporation or entity and, as a
result of such merger or consolidation, less than sixty percent (60%) of the
equity interest in the surviving or resulting corporation is owned by the former
shareholders or depositors of the Bank.

                            For purpose of Section 9(e) of this Agreement, a Change in Control shall not occur as a result
of a Conversion of the Bank from the mutual to stock form of organization or reorganization of the
Bank into the holding company or mutual holding company form of ownership ("Reorganization").
Upon any Conversion or Reorganization, the resulting entity or entities shall be subject to this
Agreement and the obligations of the Bank herein and further shall enter into agreements or
amendments hereto with Executive providing for at least the same benefits under this Agreement.

              11.       Successors and Assigns.

                            (a)       This Agreement shall inure to the benefit of and be binding upon any corporate or other
successor of the Bank which shall acquire, directly or indirectly, by merger, consolidation, purchase or
otherwise, all or substantially all of the assets of the Bank.

                            (b)       Since the Bank is contracting for the unique and personal skills of Executive, Executive
shall be precluded from assigning or delegating his rights or duties hereunder without first obtaining
the written consent of the Bank.

              12.       Amendments.  No amendments or additions to this Agreement shall be binding upon the
parties hereto unless made in writing and signed by both parties, except as herein otherwise specifically
provided.

              13.       Applicable Law.  This agreement shall be governed by all respects whether as to validity,
construction, capacity, performance or otherwise, by the laws of the State of Michigan, except to the
extent that Federal law shall be deemed to apply.

              14.       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.

              15.       Notices.  Any notices, requests, demands and other communications provided for or deemed
necessary by this Agreement shall be sufficient if set forth in writing and delivered in person or sent by
registered or certified mail, postage prepaid, to, in the case of Executive, the last address filed in
writing by Executive with the Bank, or, in the case of the Bank, to the Bank at its main office to the
attention of the Board of Directors.

              16.       Indemnification.  All indemnification provided under this Agreement shall be made in
conformity with 12 CFR § 359.5.  If any aspect of the following paragraph violates the requirements of
12 CFR § 359.5, the remaining provisions of the following paragraph shall be enforced to the extent
feasible.  

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              The Bank shall provide Executive (including his heirs, executors and administrators) with
coverage under a standard directors' and officers' liability insurance policy at its expense, or in lieu
thereof, shall indemnify Executive (and his heirs, executors and administrators) to the fullest extent
permitted under law and applicable regulation against all expenses and liabilities reasonably incurred
by him in connection with or arising out of any action, suit or proceeding in which he may be involved
by reason of his having been a director or officer of the Bank (whether or not he continues to be a
director or officer at the time of incurring such expenses or liabilities).   Such expenses and liabilities
may include, but are not limited to, judgment, court costs and attorneys' fees and the cost of reasonable
settlements.  The Bank shall pay such expenses and liabilities in advance of a final judicial decision
(hereinafter an "advancement of expenses"); provided, however, that, an advancement of expenses
incurred by Executive in his capacity as a director or executive officer of the Bank (and not in any
other capacity in which service was or is rendered by Executive  including, without limitation, services
to an employee benefit plan) shall be made only upon delivery to the Bank of an undertaking, by or on
behalf of Executive, to repay all amounts so advanced if it shall ultimately be determined by final
judicial decision from which there is no further right to appeal that Executive is not entitled to be
indemnified for such expenses under this Section 16 or otherwise. 

              17.       Entire Agreement.  This Agreement together with any understanding or modifications thereof
as may be agreed to in writing by the parties, shall constitute the entire agreement between the parties hereto.

              18.       Required Regulatory Provisions.

                            (a)       If Executive is suspended and/or temporarily prohibited from participating in the
conduct of the Bank's affairs by a notice served under Section 8(e)(3) or 8(g)(1) of the Federal Deposit
Insurance Act, 12 U.S.C. § 1818(e)(3) or (g)(1); the Bank's obligations under this contract shall be
suspended as of the date of service, unless stayed by appropriate proceedings.  If the charges in the
notice are dismissed, the Bank may in its discretion:  (i) pay Executive all or part of the compensation
withheld while its contract obligations were suspended; and (ii) reinstate (in whole or in part) any of its
obligations which were suspended.

                            (b)       If Executive is removed and/or permanently prohibited from participating in the conduct
of the Bank's affairs by an order issued under Section 8(e)(4) or 8(g)(1) of the Federal Deposit
Insurance Act, 12 U.S.C. § 1818(e)(4) or (g)(1), all obligations of the Bank under this contract shall
terminate as of the effective date of the order, but vested rights of the contracting parties shall not be
affected.

                            (c)       If the Bank is in default as defined in Section 3x(1) (12 USC 1813(x)(1)) of the Federal
Deposit Insurance Act, as amended by the Financial Institutions Reform, Recovery and Enforcement
Act of 1989, all obligations of the Bank under this Agreement shall terminate as of the date of default,
but this paragraph shall not affect any vested rights of the contracting parties.

                            (d)       All obligations under this Agreement shall be terminated, except to the extent
determined that continuation of the Agreement is necessary for the continued operation of the Bank:
(i) by the Director or his or her designee, at the time the Federal Deposit Insurance Corporation or the
Resolution Trust Corporation enters into an agreement to provide assistance to or on behalf of the
Bank under the authority contained in Section 13(c) of the Federal Deposit Insurance Act; or (ii) by the
Director or his or her designee at the time the Director or his or her designee approves a supervisory

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merger to resolve problems related to the operation of the Bank or when the Bank is determined by the
Director to be in an unsafe or unsound condition.  Any rights of the parties that have already vested,
however, shall not be affected by such action.

                            (e)       Any payments made to Executive pursuant to this Agreement, or otherwise, are subject
to and conditioned upon compliance with 12 U.S.C. Section 1828(k), 12 C.F.R. Part 359 and 12 C.F.R.
Section 545.121 and any rules and regulations promulgated thereunder.

              19.       Arbitration.  	

                            (a)       In the event of dispute under this Agreement, the parties agree pursuant to MCLA
600.5001; MSA 27A.5001, et seq., to binding arbitration in accordance with the rules of the American
Arbitration Association ("AAA") in effect at the time a demand for arbitration of the dispute is made,
with the place of arbitration being Coldwater, Michigan.  The Bank shall pay all  expenses for
attorneys , fees and costs for both Bank and Executive, except as is otherwise determined by the
arbitrator. Executive shall be entitled to attorneys of his choosing, and Bank shall promptly pay, when
invoiced, for Executive's reasonable expenses for attorneys, fees and costs. The decision and award of
the arbitrator made under the AAA rules shall be exclusive, final and binding on all parties, their heirs,
representatives, affiliates, successors and assigns.  It is further agreed that any arbitration award may be
certified to the Branch County Circuit Court which shall render a judgment upon the award made
pursuant to said arbitration.  In the event Executive or the Bank shall require equitable relief prior to
the selection of an arbitrator to resolve the dispute, either party may seek temporary equitable relief
from any court having jurisdiction of the dispute, subject to any final relief awarded by the arbitrator.

                            (b)       Limited civil discovery shall be permitted for the production of documents and the
taking of depositions, provided, however, that no party is permitted to take the deposition of more than
three witnesses except by agreement of the other party or upon order of the arbitrator pursuant to the
motion of a party. Subject to the foregoing limitations, discovery shall be conducted in accordance
with the Michigan Court Rules with any enforcement issues resolved by the arbitrator.

                            (c)       The arbitration and all proceedings, discovery and any award of the arbitrator, are
confidential.  Neither the parties nor the arbitrator shall disclose any information gained during the
course of the arbitration to any person or entity who is not a party to the arbitration unless permitted by
law.  Attendance at the arbitration shall be limited to the parties, counsel and those called as witnesses. 

                            (d)       Executive and the Bank acknowledge that each has had the opportunity to consult with
counsel of choice before signing this Agreement, and Executive and the Bank each hereby knowingly
and voluntarily, without coercion, WAIVES ALL RIGHTS TO TRIAL BY JURY of all disputes
between them and instead agrees to binding arbitration.

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              IN WITNESS WHEREOF, the parties have executed this Agreement, effective as of the date
first written above.

              	THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY
BE ENFORCED BY THE PARTIES.

	ATTEST	BRANCH COUTNY FEDERAL SAVINGS &

   LOAN ASSOCIATION OF COLDWATER

 
	 
 
 	By:	 
 

		Its:	 
 

		JOHN R. SCHROLL ("Executive") 
  

 

	 		
	 
WitnessAgent Agreement

	

AGENT
AGREEMENT

          This AGENT Agreement (this
“Agreement”) is entered into as of January 17, 2002, by and between
MoreDirect, Inc., a Florida corporation (the “Company”), and AlphaNet
Solutions, Inc., a New Jersey corporation (the “AGENT”). 

RECITALS

          The Company operates an
internet-based, business-to-business electronic market place which enables
information technology buyers to efficiently source, evaluate, purchase and
track a wide variety of computer hardware, software and related technology
products (the “Products”) from the manufacturers of leading technology
wholesale distributors. The Company desires to engage the AGENT as a
non-exclusive AGENT to assist in the promotion and sale of Products to
prospective customers, and the AGENT has agreed to serve as a AGENT of the
Company, on the terms and subject to the conditions set forth in this Agreement. 

TERMS OF
AGREEMENT

          
NOW, THEREFORE, in
consideration of the mutual covenants contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows: 

     	
1.	 	
          Appointment as AGENT.  The Company hereby agrees to engage the AGENT to
          serve as its non-exclusive AGENT to promote and solicit orders for Products on
          behalf of the Company, and the AGENT hereby agrees to accept such engagement and
          perform such services, on the terms and subject to the conditions set forth in
          this Agreement.

          

     	2.	 	
          Term.  The initial term of this Agreement (the “Initial Term”)
          shall commence on the date set forth above (the “Commencement Date”)
          and shall expire on close of business on the one-year anniversary of such date,
          unless terminated prior thereto in accordance with the terms hereof. The term of
          this Agreement shall thereafter renew for successive one-year periods (each, an
          “Option Term”) unless either party shall provide written notice to the
          other party of its intention not to renew at least thirty (30) days prior to the
          end of the Initial Term or any Option Term. For purposes of this Agreement,
          “Term” shall mean the period beginning on the Commencement Date and
          ending upon the sooner of the last day of the Initial Term or any Option Term or
          the termination of the AGENT’s engagement hereunder for any reason.

          

     	
3.	 	
          Duties.  During the Term, the AGENT agrees to use its best efforts to
          promote and sell Products to customers on behalf of the Company. The AGENT shall
          at all times during the Term seek to enhance tie business interests of the
          Company by, among other things: (i) being conversant with the Products and
          knowledgeable about the business, operations and needs of customers, (ii)
          maintaining continuous contact with customers, (iii) ascertaining and
          communicating to the Company the needs and requirements of customers, (iv)
          assisting the Company in reasonably resolving any disputes that may arise with
          customers, and (v) otherwise providing the Company with such assistance relating
          to the sales to customers as may he reasonably requested by the Company from
          time to time. The AGENT shall perform its duties and responsibilities honestly,
          diligently, in good faith and to the best of its ability. The AGENT shall
          observe and comply with all of the rules, regulations, policies and procedures
          established by the Company from time to time arid all applicable laws, rules and
          regulations imposed by governmental and regulatory authorities from time to
          time.

          

     	
4.	 	
Compensation.

	 	     (a)
As full compensation for the services hereunder and in consideration of the covenants set
forth in Sections 9, 10 and 11 below, the Company shall pay to the AGENT a commission
(the “Commission”) based upon the Company’s AGENT Commission Policy (the
“Commission Policy”) as may be in effect from time to time. The Company’s
Commission Policy as in effect as of the date hereof is summarized on Exhibit Aannexed
hereto. The AGENT agrees and acknowledges that the Company shall have the right to change
its Commission Policy at any time in its sole discretion, provided,however,
that the Company shall provide the AGENT notice of any change in its Commission Policy at
least thirty (30) days prior to the effective date of any such change. Commissions shall
be payable monthly by the Company within thirty (30) days following the end of each
calendar month based upon sales invoiced by the Company during the immediately preceding
calendar month, but shall he subject to later adjustment in accordance with the Company’s
Commission Policy. The Company shall provide the AGENT at the time of payment of any
Commissions with a report setting forth the sales made to each customer on account of
which a Commission is payable which were invoiced by the Company during the applicable
calendar month and the Commission payable on account thereof.

	 	     (b)
The AGENT agrees and acknowledges that all customers of the Company and all potential or
prospective customers identified by the Company, which is in either case, assigned by the
Company to the AGENT (each, a “Company Customer”) are and shall remain the sole
and exclusive property of the Company with respect to sales of hardware only. The AGENT
expressly understands and agrees that the Company may at any time in its sole discretion
reassign any Company Customer from one AGENT to another AGENT, or to the Company itself
with respect to sales of hardware only. Anything contained herein to the contrary
notwithstanding, AGENT shall retain exclusive rights to sell business advisory,
information technology and network services to its clients, and the Company shall not
itself, nor permit any of its other AGENTs, to sell such services to AGENT’s clients.

	 	     (c)
The Company shall have the sole and absolute right to establish sales prices, charges and
other terms and conditions governing the sale of the Products. No obligation, contractor
agreement shall be binding on the Company unless itis in writing and signed by a
duly authorized officer of the Company. The Company retains the right in its sole
discretion to accept, reject or modify army sales proposal, order or offer obtained by
the AGENT for the sale of Products. The AGENT shall not accept or approve any sales
proposal, order or offer or make any price quotations, delivery, performance or payment
promises, or product representations or warranties, without the Company’s prior
written approval. The Company shall retain the right to determine whether or not it will
furnish such prior written approval; however, if the Company does provide such prior
written approval, the Company will perform as promised. The Company has the right to make
allowances and/or adjustments in invoice amounts and to return some or all of the invoice
amounts to the customer. 

	 	     (d)
All invoices in connection with sales made by the AGENT shall be rendered by the Company
directly to the customer. The Company shall have the exclusive authority and
responsibility for collection of all amounts due from all customers. The AGENT shall upon
the request of the Company provide reasonable assistance in the collection of all amounts
due from customers. The AGENT shall hold in trust for and promptly forward to the Company
any amounts in any form which the AGENT may collect or receive from any customers of the
Company and hereby expressly waives any right of set-off or deduction which he may have
against any such amounts. 

	 	     (e)
The AGENT agrees that all purchase orders to be filled under this Agreement will be
issued by the AGENT’s customer directly to the Company. The Company will invoice the
AGENT’s customers directly and the AGENT agrees that all payments will be remitted
directly to the Company and all receivables from these invoices remain the property of
the Company; provided, however; that AGENT shall have the right to audit all such
invoices by the Company and remittances by AGENT’s customers to the Company; and
provided, further, that when requested by the AGENT, the AGENT shall have the right to
invoice AGENT’s customers itself, it being understood and agreed that the commission
structure negotiated by and between AGENT and the Company shall reflect the level of
support requited by the Company. 

     	
5.	 	
          Independent Contractor Status.  The relationship between the Company and
          the AGENT is and shall for all purposes be that of art independent contractor.
          The AGENT is not, and shall not be, and no employee, representative or agent of the AGENT is or shall be, an employee of the Company for any
          purpose whatsoever (including state and federal taxes and workers’
          compensation insurance) and the AGENT shall not, whether daring the Term or at
          any time thereafter, in any manner hold itself out to the public, or permit any
          employee, representative or agent, of the AGENT to hold himself or herself out
          to the public, as an employee of the Company. Except as set forth herein, the
          Company shall have no right to control or direct the details, manner or means by
          which the AGENT accomplishes the services to be performed hereunder. The AGENT
          shall establish its own working hours and other working conditions. Neither the
          AGENT nor any of its employees, agents or representatives shall receive any
          fringe benefits from the Company whatsoever, and the AGENT shall be responsible
          for all costs and expenses incurred by it and its employees, agents and
          representatives in connection with his Agreement. The Company will not, and the
          AGENT has requested that the Company not, withhold any monies for any state,
          local or federal taxing authorities from Commissions earned by AGENT pursuant to
          this Agreement. The Company shall prepare and file a Form 1099 with the Internal
          Revenue Service reporting the compensation paid to the AGENT and the AGENT shall
          be responsible for the payment of all withholdings, contributions and payroll
          taxes relating to its services. The parties specifically acknowledge that the
          AGENT may provide similar services for the benefit of other companies. The
          AGENT’s does not have any right, power or authority to enter into any
          contract or obligation, either express or implied, on behalf of, in the name of.
          or binding upon the Company, or to extend credit in the name or on behalf of the
          Company.

          

     	6.	 	
          Warranty.  THE AGENT ACKNOWLEDGES THAT THE PRODUCTS AND SERVICES ARE
          PROVIDED “AS IS,” WHICH MEANS THAT THE COMPANY SHALL PASS ALONG TO
          AGENT AND AGENT’S CUSTOMERS ONLY THE MANUFACTURER’S WARRANTIES ON ALL
          PRODUCTS/SERVICES SOLD BY AGENT TO THE FULLEST EXTENT PERMITTED BY LAW, THE
          COMPANY MAKES NO ADDITIONAL REPRESENTATION OR WARRANTY, OF ANY KIND, WHATSOEVER,
          WITH RESPECT TO THE PRODUCTS OR THE SERVICE OR THE CONTENT OF ANY OF THE
          COMPANY’S WEB SITES (EACH, A “WEBSITE”) OR THE FUNCTIONS,
          MATERIALS, OR INFORMATION MADE ACCESSIBLE BY ANY WEB SITE, FOR ANY PRODUCT OR
          SERVICES OR ANY HYPERTEXT LINKS TO THIRD PARTIES OR FOR ANY BREACH OF SECURITY
          ASSOCIATED WITH THE TRANSMISSION OF SENSITIVE INFORMATION THROUGH ANY WEB SITE
          OR ANY LINKED SITE. FURTHER, THE COMPANY AND ITS SUBSIDIARIES AND AFFILIATES
          DISCLAIM ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, WITHOUT LIMITATION
          NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THE
          COMPANY DOES NOT WARRANT THAT THE FUNCTIONS CONTAINED IN ANY WEB SITE OR THE
          PRODUCTS OR SERVICE, OR ANY MATERIAL OR CONTENT CONTAINED THEREIN, WILL BE
          UNINTERRUPTED OR ERROR FREE, THAT DEFECTS WILL BE CORRECTED. OR THAT ANY WEB
          SITE OR THE SERVER THAT MAKES IT AVAILABLE IS FREE OF VIRUSES OR HARMFUL
          COMPONENTS. NONE OF THE COMPANY OR ANY OF ITS SUBSIDIARIES OR AFFILIATES SHALL
          BE LIABLE FOR THE USE OF THE PRODUCTS, THE SERVICE OR ANY WEB SITE, INCLUDING,
          WITHOUT LIMITATION, THE CONTENT THEREOF AND ANY ERRORS CONTAINED THEREIN. 

          

          IN NO EVENT SHALL THE COMPANY, THE
AGENT OR ANY OF THEIR RESPECTIVE SUBSIDIARIES OR AFFILIATES BE LIABLE FOR ANY
INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF
OR IN ANY WAY RELATED TO THE USE, PERFORMANCE OR CONTENT OF THE PRODUCTS, THE
SERVICE OR ANY WEB SITE, WHETHER BASED ON ANY THEORY OF CONTRACT, TORT,
NEGLIGENCE, STRICT LIABILITY OR OTHERWISE, EVEN IF THE COMPANY HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES. BECAUSE SOME STATES AND JURISDICTIONS MAY
NOT ALLOW THE EXCLUSION OR LIMITATION OF LIABILITY FOR CONSEQUENTIAL OR
INCIDENTAL DAMAGES, THE ABOVE LIMITATION MAY NOT APPLY. 

     	
7.	 	
          Indemnification.  The Company and the AGENT shall indemnify, defend and
          hold each other and their respective officers, directors, shareholders,
          employees, representatives, agents, successors and assigns harmless from and
          against any and all claims, liabilities, actions, losses, costs, expenses
          (including attorneys’ fees and expenses) and damages arising from or
          relating to any action, or omission to act, of the other.

          

	
8.	 	
          Termination.  Notwithstanding  anything to the contrary contained in this Agreement,  the parties
                  shall have the right,  in  addition  to any other  rights and  remedies  which they may have,  to
                  terminate this Agreement and the engagement of the AGENT hereunder as follows:

	 	     (a)  Termination
Without Cause.  Either party may terminate this Agreement and the AGENT’s
engagement hereunder at any time upon thirty (30) days prior written notice to the other
party.

	 	     (b)  Termination
For Cause.  In the event that the Company or the AGENT (i) breaches any of
the terms or conditions of this Agreement and such breach is not cured (if curable)
within ten (10) days after written notice thereof is delivered to the other party, (ii)
commits any dishonest, fraudulent or willfully negligent act with respect to the other
party, (iii) is convicted of any misdemeanor involving dishonesty or moral turpitude or
any felony, or (iv) commits any act which injures or could reasonably be expected to
injure the reputation, business or business relationships of the other, then the
notifying party shall have the right to immediately terminate this Agreement and the
other party’s relationship with the notifying party hereunder by delivery of a
written notice to the other party of such termination. 

	 	     (c)  Payments
Upon Termination.  In the event that the Company shall terminate this
Agreement and the AGENT’s engagement hereunder other than pursuant to Section 8(b)
above, the Company shall pay the AGENT Commissions in accordance with the Company’s
then applicable Commission Policy on all sales made on or prior to the date of
termination and when as the same would have been payable but for such termination. In the
event that the Company rightfully terminates this Agreement pursuant to Section 8(b)
above, the Company shall not be obligated to pay any Commissions to the AGENT after the
date of termination except as may be otherwise agreed by the parties or determined by a
court of law.

     	
9.	 	
          Confidential Information.  The AGENT recognizes and acknowledges that its
          employees, representatives and agents will have access to certain confidential
          and proprietary information about the Company, its affiliates and parties with
          whom the Company does business (collectively the “Confidential
          Information”), (including, without limitation, trade and specifications,
          know-how, prices, suppliers, customers, costs, strategies, financial and
          business prospects) and that such information constitutes valuable, special and
          unique property of the Company. The AGENT acknowledges that the Confidential
          Information is and shall remain the exclusive property of the Company. The AGENT
          agrees that it will not, and will cause its employees, representatives and
          agents not to, at any time (whether during the Term or at any time thereafter)
          disclose the Confidential Information to anyone outside the parties to this
          Agreement, or utilize such Confidential Information for its or his own benefit
          or the benefit of any third parties without the prior written consent of the
          Company. The AGENT agrees that the foregoing restrictions shall apply whether or
          not such information is marked “Confidential”. The AGENT shall be
          responsible and liable for any breach of the provisions of this Section 9 by any
          employee, representative or agent of the AGENT. The Company acknowledges that
          the term “Confidential Information” shall not include information
          which (i) was known by the AGENT prior to disclosure by or on behalf of the
          Company, its affiliates or parties with whom the Company does business; (ii)
          becomes available to the AGENT from a source other than the Company, its
          affiliates or parties with whom the Company does business that is not bound by a
          duty of confidentiality to the Company, its affiliates or such other parties; or
          (iii) becomes generally available or known in the industry other than as a
          result of its disclosure by the AGENT or any of its employees, representatives
          or agents become legally obligated to disclose any Confidential Information
          other than to the Company, he or it will provide the Company with prompt notice
          thereof so that the Company may seek a protective order or other appropriate
          remedy and the AGENT will cooperate with and assist the Company in securing such
          protective order or other remedy. In the event that such protective order is not
          obtained, or that the Company waives compliance with the provisions of this
          Section to permit a particular disclosure, the AGENT, or its employee,
          representative or agent, as applicable, will furnish only that portion of the
          Confidential Information which he or it is legally required to disclose. The
          AGENT further agrees that all memoranda, disks, files, notes, records or other
          documents which contain Confidential Information, whether in electronic form or
          hard copy. and whether created by the AGENT or others, which come into the
          possession of the AGENT or an of its employees, agents or representatives, shall
          be and remain the exclusive property of the Company to be used by the AGENT only
          in the performance of its obligations hereunder, and shall be delivered by it to
          the Company together with any copies thereof upon the termination of this
          Agreement or at any other time upon the request of the Company. The AGENT also
          agrees to execute, and to cause its employees, representatives or agents to
          execute, such confidentiality agreements that the Board of Directors of the
          Company may adopt, and modify from time to time, as a standard form to be
          executed by AGENTs or representatives of the Company. Also, the Company
          recognizes and acknowledges that it will have access to
          certain confidential and proprietary information about the AGENT, its affiliates
          and parties with whom the AGENT does business (collectively, the “AGENT
          Confidential Information”) and that such information constitutes valuable,
          special and unique property of the AGENT. The Company acknowledges that the
          AGENT Confidential Information is and shall remain the exclusive property of the
          AGENT. The Company agrees that it will not at any time (whether during
          the Term or at any time thereafter) disclose the Confidential Information to
          anyone outside the AGENT, or utilize such Confidential Information for its own
          benefit or the benefit of any third parties without the prior written consent of
          the AGENT. The Company agrees that the foregoing restrictions shall apply
          whether or not such information is marked “Confidential”. The AGENT
          acknowledges that the [term “AGENT Confidential Information” shall not
          include information which (i) was known by the Company prior to disclosure by or
          on behalf of the AGENT, its affiliates or parties with whom the AGENT does
          business, (ii) becomes available to the Company from a source other than the
          AGENT its affiliates or parties with whom the AGENT does business that is not
          bound by a duty of confidentiality to the AGENT, its affiliates or such other
          parties, or (iii) becomes generally available or known in the industry other
          than as a result of its disclosure by the Company. In the event that the Company
          becomes legally obligated to disclose any AGENT Confidential Information other
          than to the AGENT, it will provide the AGENT with prompt notice thereof so that
          the AGENT may seek a protective order or other appropriate remedy and the
          Company will cooperate with and assist the AGENT in securing such protective
          order or other remedy. In the event that such protective order is not obtained,
          or that the AGENT waives compliance with the provisions of this Section to
          permit a particular disclosure, the Company will furnish only that portion of
          the AGENT Confidential Information which it is legally required to disclose. The
          Company further agrees that all memoranda, disks, files, notes, records or other
          documents which contain AGENT Confidential Information, whether in electronic
          form or hard copy, and whether created by the Company or others, which come into
          its possession, shall be and remain the exclusive property of the AGENT to be
          used by the Company only in the performance of its obligations hereunder, and
          shall be delivered by it to the AGENT together with any copies thereof upon the
          termination of this Agreement or at any other time upon the request of the
          AGENT. 

          

     	
10.	 	
          Non-Solicitation of Customers.  The AGENT acknowledges that the Company
          engages in a competitive business, the AGENT’s services and
          responsibilities are unique in character and are of particular significance to
          the Company, and the AGENT’s relationship with the Company will place it
          in a position of confidence and trust with customers of the Company. The
          AGENT consequently agrees that it is reasonable and necessary for the protection
          of the Company and its goodwill and business that the AGENT makes the
          commitments set forth herein. The AGENT therefore agrees that during the Term
          and for a period of one (1) year thereafter (the ‘Restricted Period”),
          it will not attempt in any manner to solicit or sell to any Company Customer any
          Products of the type marketed or sold by the Company during the Term or any
          products substantially similar to or competitive with such Products; provided,
          however, this restriction shall in no way restrict AGENT from selling to or
          soliciting services business from any such Company Customers during the
          Restricted Period or otherwise, nor shall such restriction apply to sales to or
          solicitations by AGENT of clients or prospective clients not first introduced by
          Company to AGENT.

          

     	
11.	 	
          Non-Solicitation of Employees.  The AGENT and the Company agree that they
          will not during the Restricted Period, directly or indirectly, employ or permit
          any company or business directly or indirectly controlled by it to employ, any
          person who is, or at any time during the preceding twelve (12) month period, was
          an employee of the Company or the AGENT or any of their respective affiliates,
          or induce or persuade or seek to induce or persuade any such person to leave his
          employment with the Company or the AGENT or any of their respective affiliates.

          

     	
12.	 	
          Enforceability of Restrictive Covenants.  The AGENT and the Company hereby
          acknowledge that the restrictions on their activities contained in Sections 9,
          10 and 11 are necessary for the reasonable protection of the Company and the
          AGENT and are a material inducement to the Company and the AGENT entering into
          this Agreement. The AGENT and the Company further acknowledge that a breach of
          any such provisions would cause irreparable harm to the Company and the
          AGENT for which there is no adequate remedy at law. The AGENT and the Company
          agree that in the event of the breach of any provision contained in Sections 9,
          10 and 11 of this Agreement, the Company and the AGENT shall have the right, in
          addition to any other rights or remedies they may have, to seek injunctive
          relief without having to post bond or other security and without having to prove
          special damages or the inadequacy of the available remedies at law. The parties
          acknowledge that (a) the time, scope, geographic area and other provisions
          contained in Sections 9, 10 and 11 are reasonable and necessary to protect the
          goodwill and business of the Company and the AGENT, (b) as art internet-based
          business, the customers of the Company and the AGENT may be serviced from any
          location and accordingly it is reasonable that the covenants set forth herein
          are not limited by narrow geographic area, and (c) the restriction of the
          AGENT’s ability to solicit customers will not prevent it from conducting
          its business. If any covenant contained in Sections 9, 10 and 11 is held to be
          unenforceable by reason of the time, scope or geographic area covered thereby,
          such covenant shall be interpreted to extend the maximum time, scope or
          geographic area for which it may be enforced as determined by a court
          making such determination, and such covenant shall only apply in its reduced
          form of the operation of such covenant in the particular jurisdiction in which
          such adjudication is made in the event that the Company or the AGENT shall bring
          any action, suit or proceeding against one another for the enforcement of this
          Agreement, the calculation of the Restricted Period shall not include the period
          of time commencing with the filing of the action, suit or proceeding to enforce
          this Agreement through the date of the final judgment or final resolution
          (including all appeals, if any) of such action, suit or proceeding. The
          existence of any claim for cause of action by one party against the other or any
          of its affiliates predicated on this Agreement or otherwise shall not constitute
          a defense to the enforcement by either party of any provision of Sections 9, 10
          and 11.

          

     	13.	 	
          Conflict.   The parties hereto hereby represent and warrant to each other
          that the execution and delivery of this Agreement by it and the performance by
          it of its duties hereunder, shall not constitute a default, breach or violation
          of any understanding, contract or commitment, written or oral, express or
          implied, to which the such party is a party or to which it is or may be bound.
          The parties hereby agree to indemnify and hold each other harmless from and
          against any and all claims, losses, damages, liabilities, costs and expenses
          (including, without limitation, attorneys’ fees and expenses) incurred by
          the other in connection with any default, breach or violation by the other party
          of any such understanding, contract or commitment. 

          

     	
14.	 	
          Binding Effect.  This Agreement shall be binding upon and inure to the
          benefit of the parties hereto and their respective heirs, successors and
          assigns, except that neither party may assign any of us rights or delegate any
          of its duties hereunder and may not appoint any sub-representative or use any
          other independent sales agent to sell Products without the express prior written
          consent of the other party.

          

     	15.	 	
          Entire Agreement.  This Agreement constitutes the entire understanding of
          the parties and supersedes all prior agreements, understandings, arrangements,
          promises and commitments, whether written or oral, express or implied, relating
          to the subject matter hereof, and all such prior agreements, understandings,
          arrangements, promises and commitments are hereby canceled and terminated.

          

	
16.	 	
               Amendment.  This  Agreement  may not be  amended,  supplemented  or  modified in whole or in part
                  except by an instrument in writing  signed by the party or parties  against whom  enforcement  of
                  such amendment, supplement or modification is sought.

	
17.	 	
               Survival.  The  provisions  of Sections  4(a),  4(b),  4(d), 5, 6, 7, 8(c) and 9 through 25 shall
                  survive the termination or expiration of this Agreement

     	18.	 	Notices.  Any notice, request or other document required or permitted to
          be given under this Agreement shall he in writing and shall he deemed given (a)
          upon delivery, if delivered by hand, (b) three days after the date of deposit in
          the mail, postage prepaid, if mailed by U.S. certified or registered mail or (c)
 on the next business day, it sent by prepaid overnight courier
          service, in each case, addressed as follows: 

          

     		 	
                                    if to the AGENT, to the address

                                    set forth below its name on the signature page hereto.

                                    If to the Company, to:

                                    MoreDirect, Inc.

                                    7300 N. Federal Highway, Suite 200

                                    Boca Raton, FL 33487

                                    Attention:  President

     		 	Any
     party may change the address to which notice shall be sent by giving notice of
     such change of address to the other parties in the manner provided above.

     

     	19.	 	
          Waivers.  The failure or delay of any party to enforce any provision of
          this Agreement shall in no way affect the right of such party to enforce the
          same or any other provision of this Agreement. The waiver by any party of any
          breach of any provision of this Agreement shall not be construed as a waiver by
          such party of any succeeding breach of such provisions or a waiver by such party
          of a breach of any other provision. The granting of any consent or approval by
          any party in any one instance shall not he construed to waive or limit the need
          for such consent or approval in any other or subsequent instance.

          

     	20.	 	
          Governing Law.  This Agreement shall be construed in accordance with the
          laws of the State of Florida applicable to contracts executed and to be wholly
          performed within such State. The parties to this Agreement agree that any suit,
          action or proceeding arising out of or relating to this Agreement or any
          judgment entered by any court in respect thereof shall be brought in the
          courts of Palm Beach County, Florida or in the U.S. District Court for the
          Southern District of Florida. Each party hereby (a) irrevocably accepts the
          exclusive personal jurisdiction of such courts for the purpose of any action,
          suit or proceeding arising out of or relating to this Agreement, (b) irrevocably
          waives, to the fullest extent permitted by law, any objection which it may now
          or hereafter have to the laying of venue of any action, suit or proceeding
          arising out of or relating to this Agreement or any judgment entered by any
          court in respect thereof brought in such courts, and (c) irrevocably waives any
          claim that any action, suit or proceeding brought in any such court is brought
          in an inconvenient forum. Each party further agrees that service of process,
          summons, notice or document by U.S. registered mail in accordance with this
          Agreement shall be effective service of process for any action, suit or
          proceeding brought against a party in any such court of competent jurisdiction. 

          

	21.	 	
               Severability.  If any term or  provision  of this  Agreement  shall be  determined  by a court of
                  competent  jurisdiction to be illegal,  invalid or  unenforceable  for any reason,  the remaining
                  provisions of this Agreement shall remain  enforceable and the invalid,  illegal or unenforceable
                  provisions shall be modified so as to be valid and enforceable and shall be enforced.

	22.	 	
               Section  Headings.  Section  headings are included in this Agreement for convenience of reference
                  only, and shall in no way affect the meaning or interpretation of this Agreement.

	23.	 	
               Counterparts.  This Agreement may be executed in two or more counterparts each of which shall
                  be deemed an original, but all of which taken together shall constitute one and the same
                  instrument.

     	
24.	 	
          Number of Days.  In computing the number of days for purposes of this
          Agreement, all days shall be counted, including Saturdays, Sundays and holidays,
          provided, however, if the final day of any lime period falls on a Saturday,
          Sunday or holiday on which federal banks in the United States are or may elect
          to be closed, then the final day should be deemed the next day which is not a
          Saturday, Sunday or such holiday. 

          

     	25.	 	
          Attorney’s Fees.  In any action brought to enforce any provision of
          Sections 9, 10. 11 or 12 of this Agreement, the prevailing party shall be
          entitled to recover reasonable attorneys’ fees and costs from the other
          party to the action or proceeding. For purposes of this Agreement, the
          “prevailing party” shall be deemed to be that party who obtains
          substantially the result sought, whether by settlement, mediation, judgment or
          otherwise, and “attorneys’ fees” shall include, without
          limitation, the actual attorneys’ fees incurred in retaining counsel for
          advice, negotiations, suit or other legal proceeding, including mediation and
          arbitration. 

          

          IN WITNESS WHEREOF, the
parties have executed this Agreement as of the day and year first written above. 

			MOREDIRECT, INC.

By: /s/ SCOTT MODIST
——————————————

Scott Modist
Vice President/CFO

			ALPHANET SOLUTIONS, INC.

By: /s/ VINCE TINEBRA
——————————————

Vince Tinebra
President & COO

EXHIBIT A

MOREDIRECT, INC.

AGENT COMMISSION
POLICY

          MoreDirect, Inc. (the
“Company”) shall pay a commission (the “Commission”)to
AlphaNet. a commission-based agent of the Company (“AGENT”), based on
the Gross Profits (as defined below) earned by the Company during each calendar
month on account of Commissionable Sales (as defined below) which result either
directly and exclusively from the AGENTs efforts or from the efforts of
the Agent’s assigned Company representative. For the purposes of this
agreement, Commissionable sales are defined as one of two distinct categories,
which will be subject to two different commission percentages as follows. 1)
Sales made by the Company to Commissionable Customers where the AGENT solicits
the order, initiates and prepares the quote. and secures the purchase order, the
AGENT’s commission shall be 15% (Fifteen Percent) of the Gross Profit, or
2) sales made by the Company to Commissionable Customers where the Company
assists in the quoting process or securing of the purchase order, the
AGENT’s commission shall be 5% (Five Percent) of the Gross Profit. 

For purposes hereof, (i) “Commissionable Customer”
shall mean and include any prospective customer identified by the AGENT which
has not previously been a customer of the Company through the AGENT (each, an
“AGENT Customer”); (ii) “Commissionable Sales” shall mean
sales of computer hardware, software and related technology products offered for
sale by the Company which are made to the “Agent Customer” and (iii)
“Gross Profits” on Commissionable Sales for any Calendar month shall
mean all amounts invoiced by the Company during such month on account of
Commissionable Sales made by AGENT less the sum of (a) any direct or indirect
costs incurred by the Company in connection with such sales (including, without
limitation, the cost of goods sold and any related shipping and handling
charges), (b) any sales returns, allowances or discounts with respect to
Commissionable Sales (whether such Commissionable Sales were made during that
month or any prior month), and (c) any taxes, duties or other fees payable by
the Company with respect to Commissionable Sales (whether such Commissionable
Sales were made during that month or any prior month. 

          In the event that: (i) the Company
is unable, for any reason, to collect all or any portion of the amount invoiced
on account of any Commissionable Sale, (ii) the Company deems it advisable in
its sole and absolute discretion to retrain from collecting all or any portion
of the amount invoiced on account of any Commissionable Sale, (iii) the Company
believes in its sole and absolute discretion that all or any portion of an
amount invoiced on account of any Commissionable Sale may be uncollectable or
otherwise credited or returned to the Commissionable Customer, or (iv) the
Company for any reason returns or otherwise credits to the Commissionable
Customer all or any portion of an amount invoiced on account of any
Commissionable Sale, and, with respect to any such invoiced amounts set forth in
clause (i) through (v) above, the, AGENT was previously
paid a Commission, then, at the Company’s election, the Company may either
set off the Commission paid on account of any such Commissionable Sales against
future Commissions earned hereunder or the AGENT shall promptly repay the
Commission paid on account of any such Commissionable Sales to the Company; it
being expressly understood and agreed that in no event shall AGENT’S
liability to Company for uncollected receivables, returns or credits exceed the
Commission actually paid by Company to AGENT in respect of the affected sale. 

     	21.	 	Severability.  
If any term or  provision  of this  Agreement  shall be  determined  by a court of
                  competent  jurisdiction to be illegal,  invalid or  unenforceable  for any reason,  the remaining
                  provisions of this Agreement shall remain  enforceable and the invalid,  illegal or unenforceable
                  provisions shall be modified so as to be valid and enforceable and shall he enforced.

     	22.	 	Headings.  
 Section  headings are included in this Agreement for convenience of reference
                  only, and shall in no way affect the meaning or interpretation of this Agreement.

     	23.	 	Counterparts.  
This Agreement may be executed in two or more counterparts each of which shall
                  he deemed an original, but all of which taken together shall constitute one and the same
                  instrument.

     	24.	 	
          Number of Days.  In computing the number of days for purposes of this
          Agreement, all days shall be counted, including Saturdays, Sundays and holidays,
          provided, however, if the final day of any lime period falls on a Saturday,
          Sunday or holiday on which federal banks in the United States are or may elect
          to be closed, then the final day should be deemed the next day which is not a
          Saturday, Sunday or such holiday. 

          

     	25.	 	
          Attorney’s Fees.  In any action brought to enforce any provision of
          Sections 9, 10. 11 or 12 of this Agreement, the prevailing party shall he
          entitled to recover reasonable attorneys’ fees and costs from the other
          party to the action or proceeding. For purposes of this Agreement, the
          “prevailing party” shall be deemed to be that party who obtains
          substantially the result sought, whether by settlement, mediation, judgment or
          otherwise, and “attorneys’ fees” shall include, without
          limitation, the actual attorneys’ fees incurred in retaining counsel for
          advice, negotiations, suit or other legal proceeding, including mediation and
          arbitration. 

          

          IN WITNESS WHEREOF, the
parties have executed this Agreement as of the day and year first written above. 

			MOREDIRECT, INC.

By: /s/ SCOTT MODIST
——————————————

Scott Modist
Vice President/CFO

			ALPHANET SOLUTIONS, INC.

By: /s/ VINCE TINEBRA
——————————————

Vince Tinebra
President & COO

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