Document:

United States Securities and Exchange Commission EDGAR Filing

EXHIBIT 10.2

EMPLOYMENT AGREEMENT

Employment Agreement, dated as of September 8, 2007 (this “Agreement”), by and between Mr. Gary Stern, a resident of the State of FL (the “Executive”), and PC Universe, Inc.,  a Nevada corporation (the “Company”).

R E C I T A L S :

WHEREAS, the Company is a direct marketing reseller of a wide range of information technology products and services, including computer systems, software and peripheral equipment, networking communications and other products and accessories  (the “Business”).

WHEREAS, the Company is desirous of continuing to employ the Executive as its Chairman and a member of its Board of Directors, and the Executive desires to be employed by the Company in such position, upon the terms and provisions, and subject to the conditions, set forth in this Agreement.

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

1.

Employment; Term.  The Company shall employ the Executive, and the Executive shall accept employment by the Company, upon the terms and provisions, and subject to the conditions, of this Agreement.  The term of the Executive’s employment hereunder shall commence on and as of the date hereof on terms and conditions reasonably satisfactory to the Executive (the “Employment Date”).  The term of the Executive’s employment hereunder shall commence on the Employment Date and terminate on the fifth (5th) anniversary of the Employment Date (as the same may be extended in accordance with this Section 1 or terminated earlier as provided in this Agreement, the “Employment Term”)). This Agreement shall automatically renew for successive two (2) year periods following the initial five (5) year Employment Term and any extensions thereof, if applicable, unless either party provides written notice to the other party not less than ninety (90) days prior to the end of the then-existing Employment Term, that such party does not desire the Employment Term to automatically renew, in which event this Agreement shall terminate as of the last day of the then-existing Employment Term.  

2.

Position and Duties.

(a)

Position. The Company shall employ the Executive, and the Executive shall serve, as the Chairman of the Company and a member of the Board of Directors of the Company.  The Executive shall be responsible for overseeing the Company’s strategic 

relationships with manufacturers and distributors and setting the Company’s direction, subject to the ultimate authority of the Board of Directors of the Company. The Executive shall have such additional responsibilities or duties with respect to the Company. And its subsidiaries, and their respective operations, as may be determined and assigned to the Executive by the Board of Director of the Company, which responsibilities and duties shall generally be of a nature which may be assigned to the most senior executive of the Company. The Executive shall report directly to the Board of Directors of the Company.

(b)

Election to Board of Directors. During the Employment Term, the Company and its Board of Directors shall cause the Executive to be nominated to be elected as a director to the Company’s Board of Directors.

(c)

Other Boards of Director. Nothing in this Agreement shall prohibit the Executive from serving as an officer or director of any entity or business enterprise, or otherwise participating in educational, welfare, social, religious and civic organizations; provided, however, that during the Employment Term, the Executive shall not serve as a director or officer of any entity or business enterprise which engages in a business that competes directly with the Business.

(d)

Investments. Nothing in this Agreement shall prohibit the Executive from making any investments in the securities of any entity or business enterprise; provided, however, that during the Employment Term, the Executive shall not make any investments (other than “passive investments” as defined below) in the securities of any entity or business enterprise which engages in a business that competes directly with the Business.  An investment shall be considered a “passive investment” to the extent that such securities (i) are actively traded on a United States national securities exchange, on the NASDAQ National Market System or Small Cap Market System, on the OTC Bulletin Board, or on any foreign securities exchange, and (ii) represent, at the time such investment is made, less than five percent (5%) of the aggregate voting power of such entity or business enterprise.

(e)

Location. The Executive shall perform his duties at the Company’s office located at  504 N.W. 77th  Street, Boca Raton, Florida  33487.

3.

Base Salary; Signing Bonus. 

(a)

Base Salary. During the Employment Term, the Company shall pay to the Executive an annual salary of two hundred fourteen thousand five hundred dollars and no cents (US $214,500), as adjusted in accordance with Section 3(b) below (as adjusted, the “Base Salary”).  The Board of Directors, in its discretion, may increase (but not decrease) the Base Salary from time to time.  The Base Salary shall be payable in equal bi-weekly installments during any year of the Employment Term; provided, however, that such payments shall be subject to withholding for applicable taxes and any other amounts generally withheld from compensation paid to salaried senior executives of the Company.  

(b)

Annual Bonus.  For the duration of this Agreement, on each anniversary of the Employment Date, the Executive shall be entitled to receive an annual bonus in cash in an amount equal to 8% of EBITDA (the “Annual Bonus”); provided, that such 

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Annual Bonus shall not exceed two hundred thousand dollars ($200,000) in any year.  Such Annual Bonus shall be paid within thirty (30) days of each anniversary of the Employment Date. 

4.

Auto Allowance; Business Expenses.

(a)

Auto Allowance. During the Employment Period the Executive shall receive a car allowance equal to one thousand two hundred sixty dollars ($1260) per month (the “Auto Allowance”), which Auto Allowance shall increase at the rate of [$100] per month on each two year anniversary of this Agreement, including any renewals or extensions hereof.

(b)

Business Expense. The Company shall reimburse the Executive for all necessary and reasonable expenses actually incurred or paid by the Executive during the Employment Term in connection with the performance of the Executive’s duties and obligations to the Company in accordance with this Agreement, in accordance with the Company’s policies from time to time in effect.  Notwithstanding any Company policy to the contrary, in connection with the Executive’s business travel on behalf of the Company, the Executive shall be entitled to first class hotel accommodations and first class air travel for any flight that is greater than two (2) hours in duration.

5.

Benefits; Indemnification and D&O Insurance.

(a)

Certain Benefits. During the Employment Term, the Executive may (subject to applicable eligibility requirements) participate in such insurance and health and medical benefits as are generally made available to the senior executives of the Company pursuant to such plans as are from time to time maintained by the Company; provided, however, that the Company shall implement and maintain a health and medical plan as soon after the Employment Date as is reasonably practical and maintain such throughout the Employment Term.  The Executive acknowledges that his participation in any benefit plan may require the Executive’s co-payment of a periodic premium as a deduction from his salary. 

(b)

Vacation. During each full year of the Employment Term, the Executive shall be entitled to four (4) weeks of vacation.  The Executive shall take vacation at such time or times as the Executive desires based upon the then current business needs and activities of the Company.

(c)

Other Benefits. During the Employment Term, the Executive shall be entitled to receive such other benefits as may be provided to other senior executives of the Company, including participation in the Company’s 401(k) plan and stock option plan.

(d)

Indemnification. During the Employment Term, the Company shall indemnify the Executive and hold the Executive fully harmless from and against all claims, actions, suits, proceedings, liabilities, damages, fines, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) which may be incurred by the Executive in connection with the performance of his duties hereunder, to the fullest extent permitted by applicable law and to the extent no less than provided to any other senior executive officer of the Company.  In addition, on the Employment Date, the Company and the Executive shall enter into an indemnification agreement containing terms and provisions reasonably satisfactory to the 

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Executive.  During the Employment Term and for a period of three (3) years thereafter, the Company shall maintain in full force and effect (and pay all premiums which may be due in respect thereof) directors and officers liability insurance coverage which shall provide not less than two million dollars ($2,000,000) of coverage per occurrence and in the aggregate.

6.

Covenant Not to Solicit.

(a)

No Solicitation. The Executive shall not, during the Employment Term and the twelve (12) month period following the Employment Term (the “Restriction Period”), unless the employment of the Executive is terminated by the Company Without Cause (as hereinafter defined) or by the Executive for Good Reason (as such term is hereinafter defined), in either such instance the Restriction Period shall only continue for so long as the Company fully satisfies its obligations to the Executive under Section 11(d) or 11(e) hereof, as applicable, directly or indirectly, solicit, entice, persuade, induce or cause any employee, officer, manager, director, consultant, agent or independent contractor of the Company to terminate his, her or its employment, consultancy or other engagement by the Company to become employed by or engaged by any individual, entity, corporation, partnership, association, or other organization (collectively, “Person”) other than the Company, or approach any such employee, officer, manager, director, consultant, agent or independent contractor for any of the foregoing purposes, or authorize or assist in the taking of any of such actions by any Person; provided, however, that, notwithstanding anything to the contrary contained in the foregoing, the Executive shall be entitled to employ or otherwise utilize the services of his personal assistant in connection with any other business activity or enterprise in which the Executive engages or otherwise participates.  

(b)

Prohibited Actions. The Executive shall not, during the Restriction Period, directly or indirectly, solicit, entice, persuade, induce or cause:

(i)

any Person who is a customer of the Company at any time during the Restriction Period; or

(ii)

any lessee, vendor or supplier to, or any other Person who had or has a business relationship with, the Company at any time during the Restriction Period;

(the Persons referred to in items (i) and (ii) above, collectively, the “Prohibited Persons”) to enter into a business relationship with any other Person for the same or similar services, activities or goods that any such Prohibited Person purchased from, was engaged in with or provided to, the Company or to reduce or terminate such Prohibited Person’s business relationship with the Company; and the Executive shall not, directly or indirectly, approach any such Prohibited Person for any such purpose, or authorize or assist in the taking of any of such actions by any Person.

(c)

Terms. For purposes of this Section 6, the terms “employee”, “consultant”, “agent”, and “independent contractor” shall include any Persons with such status at any time during the one (1) month preceding any solicitation in question.

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7.

Non-Competition.  Except as otherwise provided in this Agreement, during the Employment Term and during the Restriction Period, unless the employment of the Executive is terminated by the Company Without Cause, or by the Executive for Good Reason, in either instance the Restriction period shall only continue for so long as the Company fully exercises its obligations under Section 11(d) or 11(e) hereof, as applicable, the Executive shall not, anywhere within the United States of America, directly or indirectly, alone or in association with any other Person, directly or indirectly, (i) acquire, or own in any manner, any interest in any Person that engages in the Business or that engages in any business, activity or enterprise that competes with any aspect of the Business, or (ii) be interested in (whether as an owner, director, officer, partner, member, lender, shareholder, vendor, consultant, employee, advisor, agent, independent contractor or otherwise), or otherwise participate in the management or operation of, any Person that engages in any business, activity or enterprise that competes with any aspect of the Business.

8.

Protection of Confidential Information.   The Executive acknowledges that prior to the date hereof the Executive has had access to, and during the course of the Executive’s employment hereunder will have access to, significant Confidential Information (as hereinafter defined).  During the Restriction Period, (i) the Executive shall maintain all Confidential Information in strict confidence and shall not disclose any Confidential Information to any other Person, except as necessary in connection with the performance of the Executive’s duties and obligations under this Agreement, and (ii) the Executive shall not use any Confidential Information for any purpose whatsoever except in connection with the performance of the Executive’s duties and obligations under this Agreement.  

For purposes of this Agreement, “Confidential Information” shall mean any and all information pertaining to the Company and the Business, whether such information is in written form or communicated orally, visually or otherwise, that is proprietary, non-public or relates to any trade secret, including, but not limited to, customer data, files, business secrets and business techniques.  Notwithstanding the foregoing, “”Confidential Information” shall not include information that (i) is or becomes generally available to, or known by, the public through no fault of the Executive, or (ii) is independently acquired or developed by the Executive without violating any of his obligations under this Agreement.

9.

Certain Additional Agreements.

(a)

Legitimate Interest. The Executive agrees that it is a legitimate interest of the Company and reasonable and necessary for the protection of the goodwill and business of the Company, which are valuable to the Company, that the Executive make the covenants contained in Section 6, Section 7 and Section 8 of this Agreement.

(b)

Fair and Reasonable. The parties acknowledge that (i) the type and periods of restriction imposed in the provisions of Section 6, Section 7 and Section 8 of this Agreement are fair and reasonable and are reasonably required to protect and maintain the proprietary and other legitimate business interests of the Company, as well as the goodwill associated with the Business conducted by the Company, (ii) the Business conducted by the Company [extends throughout the United States], and (iii) the time, scope, geographic area and 

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other provisions of Section 6, Section 7 and Section 8 of this Agreement have been specifically negotiated by sophisticated commercial parties represented by experienced legal counsel. 

(c)

Illegality. In the event that any covenant contained in this Agreement, including, without limitation, any covenant contained in Section 6, Section 7, or Section 8 of this Agreement shall be determined by any court of competent jurisdiction to be illegal, invalid or unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, (i) such covenant shall be interpreted to extend over the maximum period of time for which it may be legal, valid and enforceable, as applicable, and/or over the maximum geographical area as to which it may be legal, valid and enforceable, as applicable, and/or to the maximum extent in all other respects as to which it may be legal, valid and enforceable, as applicable, all as determined by such court making such determination, and (ii) in its reduced form, such covenant shall then be legal, valid and enforceable, as applicable, but such reduced form of covenant shall only apply with respect to the operation of such covenant in the particular jurisdiction in or for which such adjudication is made.  It is the intention of the parties that such covenants shall be enforceable to the maximum extent permitted by applicable law. 

10.

Specific Performance.  The Executive acknowledges that any breach or threatened breach of the covenants contained in Section 6, Section 7, Section 8 and Section 9 of this Agreement will cause the Company material and irreparable damage, the exact amount of which will be difficult to ascertain and that the remedies at law for any such breach or threatened breach will be inadequate.  Accordingly, the Executive agrees that the Company shall, in addition to all other available rights and remedies (including, but not limited to, seeking such damages as either of them can show it has sustained by reason of such breach), be entitled to specific performance and injunctive relief in respect of any breach or threatened breach of any of Section 6, Section 7, Section 8 and Section 9 of this Agreement, without being required to post bond or other security and without having to prove the inadequacy of the available remedies at law or irreparable harm.

11.

Termination.

(a)

Death.  In the event of the death of the Executive during the Employment Term, the Executive’s employment hereunder shall automatically terminate as of the date of death; provided, however, that the Executive’s estate or legal representative, as the case may be, shall be entitled to receive, and the Company shall pay the Executive’s estate or legal representative, as the case may be, (i) the Base Salary owing to the Executive hereunder through the date of death plus Base Salary for the remaining term of this Agreement plus the one (1) year period subsequent thereto and (ii) any business expenses which were properly reimbursable to the Executive pursuant to Section 4 hereof, through the date of termination.  The Executive shall be entitled to no further payment upon such termination.

(b)

Incapacity.  In the event of the Executive’s Incapacity (as hereinafter defined), the Company may, in its sole discretion, upon written notice to the Executive, terminate the Executive’s employment hereunder upon written notice to the Executive; provided, however, that the Executive or the Executive’s legal representative, as the case may be, shall be entitled to receive, and the Company shall pay the Executive or the 

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Executive’s legal representative, as the case may be, (i) the Base Salary owing to the Executive hereunder through the date the Executive receives written notice from the Company of his termination due to Incapacity plus Base Salary for the remaining term of this Agreement plus the two (2) year period subsequent thereto and (ii) any business expenses which were properly reimbursable to the Executive pursuant to Section 4 hereof through the date of termination.  The Executive shall be entitled to no further payment upon such termination. For purposes of this Agreement, “Incapacity” shall mean the Executive’s inability to perform his duties and obligations hereunder on account of illness or other impairment for six (6) consecutive months or such longer period as proscribed by applicable law.  

(c)

For Cause.  The Company shall have the right to terminate the Executive’s employment under this Agreement at any time for Cause (as hereinafter defined) upon written notice to the Executive.  In the event the Executive’s employment hereunder is terminated by the Company for Cause, or the Executive voluntarily terminates his employment with the Company prior to the end of the Employment Term upon ninety (90) days prior written notice from the Executive to the Company, the Executive shall be entitled to receive, and the Company shall pay the Executive, (i) the Base Salary owing to the Executive hereunder through the date of termination and (ii) any business expenses which were properly reimbursable to the Executive pursuant to Section 4 hereof through the date of termination.  The Executive shall be entitled to no further payment upon such termination.  The Executive acknowledges and agrees that each of the factors which comprise the definition of “Cause” constitutes, on an individual basis, adequate and sufficient grounds for termination of the Executive’s employment with the Company.  If the Executive voluntarily terminates his employment hereunder, it shall not be deemed a breach of this Agreement by the Executive or a violation of the Executive’s duties or obligations hereunder.

For purposes of this Agreement, “Cause” shall mean the occurrence of any of the following events:

(i)

any material breach of any covenant of the Executive contained in this Agreement, and the Executive’s failure to cure such breach within thirty (30) days of the Executive’s receipt of written notice with respect thereto;

(ii)

any conviction of the Executive of or no contest plea by the Executive to a felony; or 

(iii)

any illegal drug or illegal substance abuse, illegal drug or illegal substance addiction, or chronic addition to alcohol on the part of the Executive that renders the Executive unable to perform his duties as set forth in this Agreement, other than any drug use or use of medication prescribed by a doctor.

(d)

Without Cause.  The Company shall have the right to terminate the Executive’s employment hereunder without Cause at any time upon thirty (30) days prior written notice to the Executive.  If the Company terminates the Executive’s employment hereunder without Cause, the Executive shall be entitled to receive, and the Company shall pay the 

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Executive, in accordance with the Company’s regular payroll policy, (i) Base Salary owing to the Executive through date of termination plus Base Salary for the remaining term of this Agreement plus the two (2) year period subsequent thereto (the period for which Base Salary shall be owed to the Executive under this Section 11(d)(i) shall be referred to herein as the “Severance Period”) and (ii) any business expenses which were properly reimbursable to the Executive pursuant to Section 4 hereof through the date of termination; and (iv) during the Severance Period, the health, medical insurance and other benefits which are provided to the Executive in Section 5(a) hereunder.  In addition, if the Company terminates the Executive’s employment hereunder without Cause, any stock options granted by the Company to the Executive which have not vested or are not yet exercisable shall automatically vest and become immediately exercisable by the Executive commencing on the date of termination and for a period of five (5) years following the date of termination.

(e)

Good Reason.  The Executive shall be entitled to terminate his employment with the Company for Good Reason (as hereinafter defined) upon notice to the Company of his intent to so terminate within thirty (30) days after he has actual knowledge of the event giving rise to the notice and the Company fails to cure the condition specified in the Executive’s notice to the Company required to be provided by this Section 11(e) within thirty (30) days following such notice.  If the Executive terminates his employment pursuant to this Section 11(e), such termination shall be deemed to be a termination by the Company without Cause, with the same effect and affording to the Executive the same rights and benefits as otherwise provided in this Agreement upon a termination of the Executive’s employment by the Company without Cause as provided in Section 11(d) above.

For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following events:

(i)

the Executive is not retained as Chairman of the Company even if the Executive is allowed to continue in the employ of the Company; or

(ii)

the Company materially reduces the Executive’s duties and responsibilities hereunder; or

(iii)

the Executive is removed from his position as a member of the Board of Directors of the Company for any reason other than in connection with the Executive’s termination for Cause; or

(iv)

the Company fails to perform or observe any of its material obligations to the Executive under this Agreement including, without limitation, by failing to provide or cause the provision of, any compensation or benefits to the Executive that it is obligated to provide hereunder; or 

(v)

if the Company (i) consummates a merger, consolidation, sale of all or substantially all of its assets, or enters into a business combination whereby, following such transaction, the Company is not the surviving corporation, (ii) enters into a transaction or series of transactions with a person, group or entity resulting in the acquisition of fifty percent (50%) or more of the 

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then outstanding shares of Common Stock (or any other securities with voting rights attached thereto), (iii) effects a change in the majority of the Board of Directors of the Company, or (iv) enters into any recapitalization or similar transaction resulting in a change in fifty percent (50%) or more of the Common Stock (or any other securities with voting rights attached thereto).

12.

Miscellaneous.

(a)

Notices.  All notices, demands, consents, requests, instructions and other communications to be given or delivered or permitted under or by reason of the provisions of this Agreement or in connection with the transactions contemplated hereby shall be in writing and shall be deemed to be delivered and received by the intended recipient as follows:  (i) if personally delivered, on the business day of such delivery (as evidenced by the receipt of the personal delivery service), (ii) if mailed certified or registered mail return receipt requested, four (4) business days after being mailed, (iii) if delivered by overnight courier (with all charges having been prepaid), on the business day of such delivery (as evidenced by the receipt of the overnight courier service of recognized standing), or (iv) if delivered by facsimile transmission, on the business day of such delivery if sent by 5:00 p.m. in the time zone of the recipient, or if sent after that time, on the next succeeding business day (as evidenced by the printed confirmation of delivery generated by the sending party’s facsimile machine).  If any notice, demand, consent, request, instruction or other communication cannot be delivered because of a changed address of which no notice was given (in accordance with this Section 12(a)), or the refusal to accept same, the notice, demand, consent, request, instruction or other communication shall be deemed received on the second business day the notice is sent (as evidenced by a sworn affidavit of the sender).  All such notices, demands, consents, requests, instructions and other communications will be sent to the following addresses or facsimile numbers as applicable:  

If to the Company, to:

PC Universe, Inc.

Attn: 

504 NW 77th  Street

Boca Raton, Florida  33487

with a copy to:

Blank, Rome, LLP

Attn: Bruce C. Rosetto, Esq.

1200 Federal Highway

Suite 417

Boca Raton, Florida 33432

If to the Executive, to:

Gary Stern

[Address]

[Address]

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or to such other address as any party may specify by notice given to the other party in accordance with this Section 12(a).  

(b)

Amendment.  This Agreement may not be modified, amended, altered or supplemented, except by a written agreement executed by each of the parties hereto.  

(c)

Entire Agreement.  This Agreement contains the entire understanding and agreement of the parties relating to the subject matter hereof and supersedes all prior and/or contemporaneous understandings and agreements of any kind and nature (whether written or oral) among the parties with respect to such subject matter, all of which are merged herein. 

(d)

Waiver.  Any waiver by a party hereto of any breach of or failure to comply with any provision or condition of this Agreement by any other party hereto shall not be construed as, or constitute, a continuing waiver of such provision or condition, or a waiver of any other breach of, or failure to comply with, any other provision or condition of this Agreement, any such waiver to be limited to the specific matter and instance for which it is given.  No waiver of any such breach or failure or of any provision or condition of this Agreement shall be effective unless in a written instrument signed by the party granting the waiver and delivered to the other party hereto in the manner provided for hereunder in Section 12(a).  No failure or delay by any party to enforce or exercise its rights hereunder shall be deemed a waiver hereof, nor shall any single or partial exercise of any such right or any abandonment or discontinuance of steps to enforce such rights, preclude any other or further exercise thereof or the exercise of any other right.

13.

Governing Law; Jurisdiction.

(a)

Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida applicable to agreements made and to be performed in that state, without regard to any of its principles of conflicts of laws or other laws that would result in the application of the laws of another jurisdiction.  

(b)

Jurisdiction. Each of the parties unconditionally and irrevocably consents to the exclusive jurisdiction of the courts of the State of Florida located in Palm Beach County and the federal district court for the Southern District of Florida located in Palm Beach County with respect to any suit, action or proceeding arising out of or relating to this Agreement, and each of the parties hereby unconditionally and irrevocably waives any objection to venue in any such court or to assert that any such court is an inconvenient forum, and agrees that service of any summons, complaint, notice or other process relating to such suit, action or other proceeding may be effected in the manner provided in Section 13(a) a.  Each of the parties hereby unconditionally and irrevocably waives the right to a trial by jury in any such action, suit or other proceeding. 

14.

Binding Effect, No Assignment, etc.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective legal representatives, heirs, estate, successors and permitted assigns.  Neither this Agreement nor any right, interest or 

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obligation hereunder may be assigned by any party hereto without the prior written consent of the other party, and any attempt to do so shall be void and of no force and effect, except (i) assignments and transfers by operation of law and (ii) that the Company may assign any or all of its respective rights, interests and obligations hereunder to any purchaser of a majority of the issued and outstanding capital stock of the Company or a substantial part of the assets of the Company.  

15.

Third Parties.  Nothing herein is intended or shall be construed to confer upon or give to any Person, other than the parties hereto (or persons set forth in Section 14), any rights, privileges or remedies under or by reason of this Agreement.

16.

Headings.  The section headings contained in this Agreement  are inserted for reference purposes only and shall not affect in any way the meaning, construction or interpretation of this Agreement.  Any reference to the masculine, feminine, or neuter gender shall be a reference to such other gender as is appropriate.  References to the singular shall include the plural and vice versa.

17.

Counterparts.  This Agreement may be executed in two (2) or more counterparts (including by facsimile signature, which shall constitute a legal and valid signature), and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, and all of which, when taken together, shall constitute one and the same document.  This Agreement shall become effective when one or more counterparts, taken together, shall have been executed and delivered by all of the parties.  

[Signature Page Follows]

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

PC UNIVERSE, INC. 

By: /s/ Tom Livia

Name: Tom Livia

Title: President

/s/ Gary Stern

Gary Stern

-12-United States Securities and Exchange Commission EDGAR Filing

EXHIBIT 10.3

March 27, 2007 

Sierra Equity Group, LTD 

Attn: Alan David Goddard 

7700 Congress Avenue Suite 3207 

Boca Raton, FL 33487 

Re: Selling Agreement (the "Agreement") 

Dear Mr. Goddard: 

PC Universe Corporation, a Nevada corporation (the "Seller"), proposes to offer and sell (the "Offering"), to selected investors, upon the terms set forth herein and in the Subscription Agreement and the Confidential Private Placement Memorandum (which collectively, together with the attachments and exhibits thereto, is referred to as the "Offering Document"), Sierra Equity Group, LLC will use their best efforts to raise a minimum of $1,000,000 and a maximum of $2,500,000. In addition, warrants will accompany the offering and shall have a term of five years, and be in the form attached to the Offering Document (The common stock and warrants offered in this private placement are sometimes referred to hereafter as the "Offered Securities"). 

Sierra Equity Group, Inc. (the "Selling Agent") agrees to offer and sell, on a "best efforts basis,” the Offered Securities during the offering period described in the Offering Document (the "Offering Period"). Capitalized terms used and not otherwise defined herein shall have the respective meanings set forth in the Offering Document. It is intended that the offer, offer for sale and sale of the Offered Securities will be made only to "accredited investors" (as such term is defined in Rule 501(a) of Regulation D of the Securities Act of 1933, as amended (the "1933 Act") and will be exempt from the federal registration requirements of the 1933 Act, pursuant to Regulation D promulgated under Section 3(b) and/or Section 4(2), respectively, of the 1933 Act and will qualify for an exemption from registration under the applicable state securities laws and regulations. 

The Seller hereby confirms its agreement with Selling Agent as follows: 

1.

Offer and Sale of Offered Securities by Selling Agent; Compensation; Closing. 

1.1

On the basis of Selling Agent's representations, covenants and warranties, the Seller appoints Selling Agent as an agent of the Seller as of March 26, 2007 and ending on June 26, 2007 unless extended by the Seller for a period not to exceed an additional ninety (90) days ("Offering Termination Date"), to use Selling Agent's best efforts to offer and sell, on the terms and conditions set forth in this Agreement and in the Offering Document, subject only to Selling Agent's right to engage

participating broker-dealers pursuant to Section 2 hereof. The Selling Agent hereby accepts such appointment and agrees pursuant to the terms and conditions set forth herein and in the Offering Document to use its best efforts to offer and sell the Offered Securities as agent for the Seller during the period specified above, and to attempt to find suitable accredited purchasers for the Offered Securities acceptable to the Seller. 

1.2

The Company reserves the right, in its sole discretion to reject any subscription by any investor and to hold multiple Closings. At the Closing, the Company will cause to be issued to each investor whose Subscription Application and Agreement and funds have been accepted by the Company, the number of Offered Securities purchased by the investor. (The First Closing and any Additional Closing shall each be referred to herein as a "Closing" and the last of the Closings shall be referred to as the "Final Closing"). 

1.3

As compensation for the Selling Agent's services hereunder, the Seller shall pay to Selling Agent selling commissions ("Commission"), from the Offered Securities sold by the Selling Agent, consisting of 10% of the aggregate gross proceeds from said Offered Securities sold directly by the Selling Agent, and 3% for nonaccountable expenses on the gross proceeds of each raise, and the issuance of Warrants to Selling Agent for the purchase of up to 10% of the shares issuable under the Warrants issued to investors sold directly by Selling Agent in the Offering or its authorized agent at such Closing. Such Warrants shall be on the same strike price and terms as the Warrants sold directly by Selling Agent and all said warrants shall contain a cashless exercise provision. Said Commission shall be paid at each Closing and said Warrants shall be in the form and shall contain the provisions set forth in Offering Document including the same registration rights as Investors. Additionally, the Seller shall grant the Selling Agent up to 400,000 restricted shares of common stock of the Seller, pro rated based on the Maximum Offering Amount. This additional share grant shall also have the same registration rights that the investors receive. The Seller shall grant the Selling Agent up to $15,000 of legal fees, exclusive of the due diligence fee. 

At each Closing of the Offering, the Seller shall pay the Selling Agent its Commission relating to the sale of the Offered Securities that are subject of the Closing provided that the Seller or counsel for the Seller has received all documents, including but not limited to, an executed Subscription Agreement for each investor ("Subscription Documents") previously furnished to Selling Agent which the Selling Agent is required to deliver to the Seller or counsel for the Seller prior to Closing. All or any portion of such Commission may be re-allowed to Participating Broker-Dealers (as hereinafter defined). No Offered Securities shall be considered to have been sold by Selling Agent or any Participating Broker-Dealer selected by Selling Agent unless the purchaser is acceptable to the Seller, and no compensation will be payable with respect to any agreement for the purchase of Offered Securities if the Subscription Agreement therefore is not actually accepted by the Seller. Anything in this Agreement to the contrary notwithstanding, the Seller shall not be required to pay a Commission to Selling Agent and Selling Agent shall not be entitled to a Commission, pursuant to this Section 1.4 or any other provision, if to do so would cause the Seller to violate federal or 

state securities laws, regulations or rules or any other law applicable to the Offering. For purposes of clarity, the Selling Agent shall not be entitled to any Commission upon the future exercise of the Warrants sold as part of the Units. 

1.4

The Seller will pay all of its costs relating to the Offering contemplated hereby, including, without limitation, audit expenses, issuance costs and taxes, counsel fees for the preparation of the Offering Documents, filing fees and disbursements of counsel relating to the qualification of the Offered Securities under federal securities laws, and legal fees and expenses of counsel in connection with qualifying the Offered Securities under the state blue sky laws. To the extent required by law, the Seller shall qualify the Offered Securities for offer and sale in those jurisdictions designated by the Selling Agent and reasonably acceptable to the Seller. The Seller's counsel shall be responsible for state blue sky securities laws compliance by the Seller. 

1.5

Once the Offered Securities are sold, or the Offering Period terminates, except as set forth in Section 8.1, the agency between the Seller and the Selling Agent shall terminate. The Selling Agent, on the basis of the representations and warranties herein contained, but subject to the terms and conditions herein set forth, accepts such appointment as the limited agent of the Seller and agrees to use its best efforts to find purchasers for the Offered Securities. 

1.6

Each Closing shall be held at the place of the Seller's choice in such time and date as Seller deems appropriate. 

1.7

The holders of the Offered Securities will be provided with piggyback registration rights with respect to the shares of common stock underlying the Warrants and the Common Stock. The Seller has agreed to file a "resale" registration statement with the Securities and Exchange Commission ("SEC") covering all shares (including all shares underlying warrants) issued in the transaction, on a date to be determined, provided, however that such determined date is not less than 180 days from the Final Closing. The Seller is obligated to maintain the effectiveness of the "resale" registration statement from the effective date through and until twelve(12) months after the effective date. In event the "resale" registration statement is not filed with the SEC on or prior to the determined date, the total number of shares of stock subscribed to in the Private Placement and covered by the registration statement for each named selling share holder shall be increased by two(2) percent per month (the "Penalty") for each month (or portion thereof) that the registration statement is not so filed, provided that the aggregate increase in such shares pursuant to this paragraph will in no event exceed twelve percent(12%). The Seller shall use its best efforts to have such "resale" registration statement declared effective by the SEC as soon as possible and shall respond to any SEC comments within 30 days from receiving such comments or shall otherwise be subject to the Penalty as described above. Notwithstanding the foregoing, the Penalty will be waived for any material event delays due to the S.E.C. or arising from any acquisitions conducted by the Seller. 

2.

Participating Broker-Dealers. The Seller hereby authorizes Selling Agent to engage other qualified broker-dealers (the "Participating Broker-Dealers") to assist the Selling Agent in the placement of the Offered Securities; provided that during all times that each such Participating Broker-Dealer shall offer and sell the Offered Securities, each such Participating Broker-Dealer shall be registered as a broker-dealer under the Securities Exchange Act of 1934 (the "1934 Act"), shall be a member in good standing of the National Association of Securities Dealers, Inc. ("NASD"), and shall be authorized to offer and sell the Offered Securities under the laws of the jurisdictions in which the Offered Securities will be offered and sold by such Participating Broker-Dealer. Any commissions, fees, or expenses payable to such Participating Broker-Dealers will be paid by the Selling Agent and not by the Seller. 

3.

Representations, Warranties and Covenants. 

3.1

The Seller represents, warrants and covenants to Selling Agent that, except as set forth in Schedule 3.1 hereof (and specifically identified as to which subsection the exception applies) or in the Offering Document: 

(a)

The Seller and each subsidiary is a corporation du1y formed and validly existing and in good standing under the laws of the jurisdiction of its incorporation as in effect on the date of this Agreement, with adequate power and authority to enter into and perform this Agreement and to own its property and to conduct its business as described in the Offering Document; and the Seller and each subsidiary is du1y qualified as a foreign corporation to transact business and is in good standing in each jurisdiction in which it owns or leases substantial properties or in which the conduct of its business requires such qualification except for such jurisdictions in which the failure to qualify in the aggregate wou1d not have material and adverse effect on the assets, liabilities, earnings, affairs, business or prospects of the Seller or any such subsidiary (a "Material Adverse Effect") and in which jurisdictions such failure may be cured without such Material Adverse Effects; the execution and delivery of this Agreement, Warrant, Registration Rights, Subscription Agreement and other transaction documents (collectively the "Transaction Documents") by the Seller has been duly and validly authorized and will not result in a breach of its Articles of Incorporation or Bylaws; and when executed and delivered by both parties hereto, this Agreement will be a valid and binding obligation of the Seller, assuming the due execution by the Selling Agent, enforceable in accordance with its terms (except to the extent that enforceability of the indemnification provisions may be limited under applicable securities laws and except as enforcement may be limited by bankruptcy, moratorium or other laws affecting creditors' rights or general principles of equity); and the execution and delivery of this Agreement, the consummation of the transactions herein contemplated and compliance with the terms of this Agreement by the Seller do not and will not conflict with or resu1t in a breach of any of the terms or provisions of, or constitute a defau1t under, any agreement or any applicable law, rule, regulation, judgment, order or decree of any government, government instrumentality or court, domestic or foreign, having 

jurisdiction over the Seller, to which the Seller is a party or by which it is bound; and does not otherwise conflict with any permit, license, authorization, franchise, commitment or with any agreement, loan, note indenture, mortgage, license, lease or other agreement; 

(b)

The Offering Document does not contain and will not contain, at any time between the date hereof and to and including the date of each Closing, any untrue statement of a material fact and does not omit nor during such period will omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; 

(c)

Except as is otherwise disclosed, there is no litigation or governmental proceeding pending or, to the best of its knowledge, threatened against or involving the property or business of the Seller or any subsidiary of the Seller that would result in a Material Adverse Effect or would otherwise adversely affects the validity or enforceability of this Agreement or Transaction Documents or Company's ability to consummate the Offering; 

(d)

Except as is otherwise disclosed, the Company is not in violation of any permit, the Articles of Incorporation or By Laws, no material defaults exist in the due performance and observance of any material obligation, term, covenant or condition of any agreement or instrument, license, note, indenture, loan agreement, mortgage, or other agreement to which the Seller or any subsidiary is a party or by which they are bound that would result in a Material Adverse Effect; 

(e)

The offer, offer for sale, and sale of the Offered Securities are not registered with the Securities and Exchange Commission (the "SEC") except as contemplated in the Offering Document. The Company's actions with respect to the offer, offer for sale and sale of the Offered Securities will be pursuant to the exemptions from the registration requirements of Section 5 of the 1933 Act provided by Section 4(2) thereof and/or by Regulation D thereunder. ; 

(f)

To the best of its knowledge and belief, assuming the offer, offer for sale and sale of the Offered Securities is made in compliance with the terms of the Offering Document, the applicable filings with the SEC and any applicable Blue Sky laws, and subject to the performance of the Selling Agent's obligations hereunder, the Seller will have complied in all material respects with the 1933 Act and with all state securities laws and regulations applicable to it in connection with the offer, offer for sale, and sale of the Offered Securities. The Seller has not taken and will not take any action in conflict with the 1933 Act or applicable state or foreign securities or Blue Sky laws, or which would make the exemption, qualification or registration pursuant to applicable federal or state securities or Blue Sky laws unavailable with respect to the offer, offer for sale and sale of the Offered Securities. The Seller and its officers, directors or partners are not subject to any disqualification, including but not limited to any judgment, decree, order or decision issued by the SEC, any state or foreign securities regulatory authority, 

any court of competent jurisdiction or the United States Postal Service. In offering the Offered Securities, the Seller will comply with all applicable federal, state or foreign securities laws, including the rules covering exemptions from registration; 

(g)

Subject to the performance of the Selling Agent's obligations hereunder, the Offered Securities, upon the payment there for and issuance thereof, will conform to all statements and descriptions in relation thereto contained in the Offering Document and will have the rights set forth in the Seller's Articles of Incorporation; 

(h)

To the best of the Seller's knowledge, the Seller has neither been engaged in, nor been the subject of, any of the actions or proceedings specified in subsection (a) of Rule 262 promulgated under Section 3(b) of the 1933 Act, or any substantially similar provisions under the securities laws of any state in which the Offered Securities are to be sold, such that no exemption from registration would be available for the offering of the Offered Securities by the Seller under applicable federal or state securities laws; 

(i)

The Seller will notify the Selling Agent immediately and confirm the notice in writing (i) of the issuance by the SEC or by any state attorney general or securities administrator of any order enjoining the sale of the Offered Securities or suspending the effectiveness of any qualification of the Offered Securities for sale or (ii) of the initiation of any proceedings for that purpose. The Seller will make every reasonable effort to prevent the issuance of any such order and, if any such order shall at any time be issued, to obtain the lifting thereof at the earliest possible moment; 

(j)

The audited and unaudited financial statements of the Seller (including the related notes) present fairly the financial position of the Seller and its subsidiaries at the dates indicated; said financial statements have been prepared in conformity with United States generally accepted accounting principles applied on a consistent basis, except as expressly qualified therein, and the audited financials are in conformity with Regulation S-X promulgated under the Act. The Seller has engaged independent auditors to audit the financial statements of Seller and the auditors are a registered public accounting firm; 

(k)

Except as set forth in the Offering Documents, the Seller does not have any subsidiaries and does not own any interest in any other corporation, partnership, joint venture or other entity; 

(1)

The Seller and its subsidiaries have not, directly or indirectly, at any time during their existence (i) made any unlawful contribution to any candidate for political office, or failed to disclose fully any contribution in violation of law, or (ii) made any payment to any federal, state or foreign governmental officer or official, or other person charged with similar public or quasi-public duties, other than 

payments required or permitted by the laws of the United States or any jurisdiction thereof; 

(m)

To the best of Seller's knowledge, the Seller and its subsidiaries have filed all necessary federal, state, local, foreign and other tax returns required to be filed by them and have paid all taxes shown as due thereon; the Seller and its subsidiaries have not been notified, either orally or in writing, that any state, local, federal or foreign taxing authority is conducting or intends to conduct an audit of any tax return or report filed by the Seller and its subsidiaries or concerning their business or properties; and the Seller has no knowledge of any tax deficiency which has been asserted or threatened against the Seller and any subsidiary which would materially and adversely affect the business, properties, financial condition, results of operations, liabilities or working capital of the Seller; 

(n)

The Seller and its subsidiaries make and keep accurate books and records and maintain internal accounting controls which provide reasonable assurance that (i) transactions are executed in accordance with management's authorization, (ii) transactions are recorded as necessary to permit preparation of its financial statements and to maintain accountability for its assets, (iii) access to their assets is permitted only in accordance with management's authorization, and (iv) the reported assets are compared with existing assets at reasonable intervals; 

(o)

There are no pre-emptive rights applicable to any of the Seller's outstanding securities, or granted by the Seller to any person or party; 

(p)

The capitalization of the Seller is as described in the Offering Documents and the Seller has outstanding no more than shares of its Common Stock as of the date hereof; all presently outstanding shares of the Seller's Common Stock are duly and validly authorized and issued, fully paid and non-assessable; the Seller has not contracted for the issuance of any additional equity securities other than as set forth herein or as contemplated or described in the Offering Document and no shares of any other classes of equity securities are issued and outstanding except as follows: outstanding options to purchase __________ shares of common stock and outstanding warrants to __________ shares of common stock; 

(q)

The Seller agrees that, for a period of Twenty months (24) months from the date hereof, it shall not solicit any offer to buy from or offer to sell to any person introduced to the Seller by the Selling Agent in connection with the Offering, any securities of the Seller or provide the name of any such person to any other securities broker or dealer or selling agent. In the event that the Seller or any of its affiliates, directly or indirectly, solicits, offers to buy from or offers to sell to any such person any such securities, or provides the name of any such person to any other securities broker or dealer or selling agent, and such person purchases such securities or purchases securities of the Seller from any other securities broker or dealer or selling agent, the Seller shall pay to the Selling Agent an amount equal to eight percent (8.0%) of the aggregate 

purchase price of the securities so purchased by such person and provide Seller with Warrants as set forth in this Agreement;

(s)

All securities to be issued in the Offering, including but not limited to the Common Stock, Warrants Shares or any other securities to be delivered pursuant to the Offering shall be validly issued, fully paid, and non-assessable upon issuance and shall not trigger any pre-emptive rights, participation rights or other rights to receive additional securities; 

(t)

No authorizations, consents or approvals are required from any third parties, government or regulatory agency in order to consummate the Offering; 

3.2

The Selling Agent represents and warrants to the Seller as follows: 

(a)

The Selling Agent is, has been and will be at all times during the Offering Period, a Delaware corporation duly organized and validly existing under the laws of the state of its incorporation, with all requisite power and authority to enter into and perform this Agreement; the execution and delivery of this Agreement by the Selling Agent has been duly and validly authorized; and when executed and delivered by the Seller, this Agreement will be a valid and binding obligation of the Selling Agent enforceable in accordance with its terms subject to: (i) due authorization, execution and delivery hereof by the Seller; (ii) the enforcement of remedies under applicable bankruptcy, insolvency and other laws affecting creditors' rights generally and moratorium laws from time to time in effect; (iii) general equitable principles which may limit the right to obtain the remedy of specific performance; and (iv) the public policy limitation on indemnification under the federal securities laws; 

(b)

The Selling Agent shall not offer or sell the Offered Securities in any state or states without the approval of the Seller and completion by the Seller of all, or any, Blue Sky filings for such states and shall not offer or sell the Offered Securities in any state or states in which it is not qualified or registered as a broker-dealer or authorized to engage in the brokerage business; and 

(c)

The Selling Agent is (i) a broker-dealer registered with the SEC pursuant to the 1934 Act, and no proceeding has been initiated to revoke such registration; (ii) a member in good standing of the NASD; and (iii) a broker-dealer registered with the securities authorities of each jurisdiction in which it is required to be registered in connection with the offers or sales of the Offered Securities, and all such offers or sales will be made only by individuals licensed as required by all applicable federal and state securities laws. The Selling Agent agrees to maintain each of the 

foregoing memberships and registrations in good standing throughout the Offering Period. 

(d)

Selling Agent has all rights, powers, authorities and licenses in order to enter into this agreement and doing so shall in no manner violate any law or the rights of third parties. 

4.

Sale and Delivery of Offered Securities. 

4.1

No sale of Offered Securities shall take place or be regarded as effective unless and until accepted by the Seller, such acceptance to occur at Closing, and the Seller reserves the right in its sole and absolute discretion to refuse to sell Offered Securities to any or all persons at any time. Selling Agent shall send to the Seller, with copies to counsel for the Seller, all acceptable executed Subscription Documents, promptly upon receipt of the same, subject to any reasonable delay occasioned by further inquiry as to a prospective purchaser's qualification or requests by the Seller or Selling Agent for further information from a prospective purchaser. The Seller shall notify Selling Agent as to whom to send the originals of such executed Subscription Documents and to whom to send copies. Selling Agent shall promptly send each such prospective purchaser's payment for his Offered Securities to the Seller. Subject to review by counsel for the Seller, the Seller shall notify Selling Agent whether such prospective purchaser will be accepted by the Seller at Closing within ten (10) business days after receipt of the executed subscription documents for each prospective purchaser of Offered Securities. For every prospective purchaser of Offered Securities whose subscription is rejected, the Seller will promptly return all of such prospective purchaser's executed Subscription Documents to Selling Agent for return to the prospective purchaser, and will return the funds received to such prospective purchaser without interest and without deduction. 

5.

Conditions to the Obligations of the Seller. 

The obligations of the Seller hereunder are subject to the accuracy of Selling Agent's representations and warranties, to the observance and performance by Selling Agent of its obligations hereunder, and to the following further conditions (any of which may be waived in writing in whole or in part by the Seller): 

(a)

Selling Agent shall not have taken or failed to take any action at any time at or prior to Closing, which, in the opinion of the Seller or counsel for Seller, conflicts or would conflict with, or otherwise make unavailable, the exemption from registration requirements for the offer and sale of the Offered Securities under applicable securities laws and regulations. 

(b)

If any of the conditions specified in this Section 5 shall not have been fulfilled when and as required by this Agreement to be fulfilled, all the obligations of the Seller under this Agreement may be terminated in writing at any time at or prior to Closing, and any such termination shall be without liability to the parties, and further 

provided that the obligations under Section 7 and Section 9.1 shall nevertheless survive and continue thereafter. 

6.

Conditions of the Obligations of the Selling Agent. 

The obligations of the Selling Agent to act as agent hereunder, to find purchasers for the Offered Securities, and to attend and to deliver documents at Closing shall be subject to the fol1owing conditions: 

(a)

Between the date hereof and Closing, the Seller and its subsidiaries shall not have sustained any loss on account of fire, explosion, flood, accident, calamity or other cause, of such character as results in a Material Adverse Effect, whether or not such loss is covered by insurance. 

(b)

Between the date hereof and Closing, there shall be no material litigation instituted or threatened against the Seller or any subsidiary (other than as set forth in the Offering Document) and there shall be no material proceeding instituted or threatened before or by any federal or state commission, regulatory body or administrative agency or other governmental body, domestic or foreign, wherein an unfavorable ruling, decision or finding would materially adversely affect the business, franchises, licenses, permits, operations or financial condition or income of the Seller. 

(c)

Except as contemplated herein or as set forth in the Offering Document, during the period subsequent to the date hereof, and prior to Closing, the Seller and each subsidiary: (i) shall have conducted its business in the usual and ordinary manner as the same was being conducted on the date hereof, and (ii) except in the ordinary course of its business or transactions contemplated or disclosed to Sel1ing Agent (e.g., entering into agreements for fol1ow-on financing, which may include debt, security and a change in capital structure, the Seller and each subsidiary shall not have incurred any liabilities or obligations (direct or contingent), or disposed of any assets, or entered into any material transaction or suffered or experienced any substantially adverse change in its condition, financial or otherwise, or in its working capital position. At Closing, the capitalization of the Seller shall be substantially the same as set forth in the Offering Document. 

(d)

The authorization for the issuance and delivery of the Offered Securities and the Offering Document and related materials, and for the execution and delivery of this Agreement, and all other legal matters incident thereto, shall be reasonably satisfactory in all respects to counsel for Selling Agent. 

(e)

The representations and warranties of the Seller made in this Agreement or in any document or certificate delivered to the Sel1ing Agent pursuant hereto shall be true and correct on and as of the Closing with the same force and effect as though such representations and warranties have been made on and as of the Closing, and the Selling Agent shall have received a certificate, dated the Closing Date, to such effect executed by the Chairman of the Board or President of the Seller. 

(f)

The Seller shall have performed and complied in all material respects with all covenants, terms and agreements to be performed and complied with by the Seller on or before the Closing. 

(g)

The Seller shall have provided Certificates as the Selling Agent shall reasonably request. 

(h)

The Seller and its President shall provide certificates to the Selling Agent certifying that the proceeds of the Offering will be used in accordance with the uses designated in "Use of Proceeds" in the Offering Document. 

7.

Indemnification. 

7.1

The Seller agrees to indemnify and hold harmless Selling Agent and each person, if any, who controls Selling Agent within the meaning of the 1933 Act or the 1934 Act (together, the "Acts"), the Selling Agent's affiliated entities, partners, employees, legal counsel and agents (the "SA Indemnified Parties") against any losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements (and any and all actions, suits, proceedings and investigations in respect thereof and any and all legal and other costs, expenses and disbursements in giving testimony or furnishing documents in response to a subpoena or otherwise), joint or several, to which Selling Agent or such person may be subject, under the Acts or otherwise, including, without limitation, the costs, expenses and disbursements, as and when incurred, of investigating, preparing or defending any such action, suit, proceeding or investigation (whether or not in connection with litigation in which the Selling Agent is a party), directly or indirectly, caused by, relating to, based upon, arising out of, or in connection with (i) the violation or breach of any representation, warranty or covenant or agreement of the Seller set forth in this Agreement or in any instrument, document, agreement or certificate delivered by the Seller in connection herewith; (ii) any untrue statement or omission in the Offering Document or selling material, excluding any statement or omission relating to information contained in or omitted from the Offering Document or selling material in reliance upon, and in conformity with, information furnished to the Seller by Selling Agent or any Participating Broker-Dealer specifically for use in preparation of the Offering Document or selling material, as the case may be; (iii) any statement or omission relating to information provided by or on behalf of Seller in order to qualify or exempt the Offered Securities for sale in any jurisdiction; or (iv) the failure of the Seller to comply with the provisions of the Acts and the regulations thereunder, including Regulation D; and will reimburse the SA Indemnified Parties for any legal or other expenses reasonably incurred by the SA Indemnified Parties in connection with investigation of or defending against any such loss, claim, expense, damage, liability, (or actions in respect thereof); provided, however, that the Seller shall not be required to indemnify the SA Indemnified Parties for any payment made to any claimant in settlement of any suit or claim unless such payment is agreed to by the Seller (which agreement shall not be unreasonably withheld) or by a court having jurisdiction of the controversy. This indemnity agreement shall remain in full force and effect 

notwithstanding any investigation made by Selling Agent or on Selling Agent's behalf, shall survive consummation of the sale of the Offered Securities hereunder and shall be in addition to any liability which the Seller may otherwise have. Notwithstanding the foregoing, in no event shall the amount that the Seller is required to indemnify the Selling Agent's Indemnified Parties, exceed in the aggregate the monies received by the Selling Agent hereunder, except in the case of fraud on the part of the Seller. 

7.2

Selling Agent agrees to indemnify and hold harmless the Seller and each person, if any, who controls the Seller within the meaning of the Acts, Seller's affiliated entities, partners, employees, legal counsel and agents (the "Seller Indemnified Parties") against any losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements (and any and all actions, suits, proceedings and investigations in respect thereof and any and all legal and other costs, expenses and disbursements in giving testimony or furnishing documents in response to a subpoena or otherwise), joint or several to which the Seller or any such person may be subject, under the Acts or otherwise, insofar as such losses, claims, expenses, damages or liabilities (or actions in respect thereof) which (i) arise out of or are based upon any untrue statement or omission contained in the Offering Document in reliance upon, and in conformity with, information furnished to the Seller by Selling Agent or any Participating Broker-Dealer or either of them specifically for use in preparation of the Offering Document or selling material, as the case may; and will reimburse the Seller Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending against any such loss, claim, expense, damage, liability, (or actions in respect thereof); provided, however, that Selling Agent shall not be required to indemnify the Seller Indemnified Parties for any payment made to any claimant in settlement of any suit or claim unless such payment is approved by a court having jurisdiction over the controversy or Selling Agent agrees to such settlement (which agreement shall not be unreasonably withheld); and provided further that Selling Agent shall not be liable under this Section 7.2 for any losses, claims, expenses, damages or liabilities arising out of any act or failure to act on the part of any other person except Selling Agent, its partners, employees and agents (including registered representatives) or any Participating Broker Dealer. This indemnity agreement shall remain in full force and effect notwithstanding any investigation made by or on behalf of the Seller and shall survive consummation of the sale of the Offered Securities hereunder and the termination of this Agreement, and shall be in addition to any liability which Selling Agent may otherwise have. Notwithstanding the foregoing, in no event shall the amount that the Selling Agent is required to indemnify the Seller Indemnified Parties, except in the case of fraud on the part of the Selling Agent. 

7.3

The Indemnified Party shall notify the indemnifying party in writing promptly after the summons or other first legal process giving information of the nature of any and all claims which have been served upon the indemnified party. In case any action is brought against any indemnified party upon any such claim, the indemnifying party shall be entitled to participate at its own expense in the defense, or if it so elects, in accordance with arrangements satisfactory to any other indemnifying party 

or parties similarly notified, to assume the defense thereof, with counsel who shall be satisfactory to such indemnified party and other indemnified parties who are defendants in such action; and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof and the retaining of such counsel by the indemnifying party, the indemnifying party shall not be liable to such indemnified party under this Section 7 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof, other than the reasonable costs of investigation, unless the indemnified party shall have reasonably concluded that there are or may be defenses available to it which are different from or in addition to those available to the indemnifying party (in which case the indemnifying party shall not have the right to direct the defense of such action on behalf of the indemnified party), in any of which circumstances such expenses shall be borne by the indemnifying party. Notwithstanding anything to the contrary herein, the Seller shall not enter into any settlement unless the indemnifying party is provided with a full release, reasonably satisfactory to the indemnifying party, and the indemnifying party is not required to make any admission of wrongdoing. 

8.

Termination of Agreement. 

8.1

This Agreement shall terminate: 

(a)

If at any time after commencement of the Offering, any material condition of Seller's obligations hereunder shall not have been met or shall cease to be met and Selling Agent shall have given to the Seller notice of Selling Agent's desire to terminate this Agreement on account of the nonfulfillment of such condition; or 

(b)

If at any time after commencement of the Offering, any material condition of Selling Agent's obligations hereunder shall not have been met or shall cease to be met and Seller shall have given to the Selling Agent notice of Seller's desire to terminate this Agreement on account of the nonfulfillment of such condition; or 

(c)

At such time as all of the Offered Securities shall have been sold and the subscriptions therefor have been accepted or the Offering Termination Date has been reached, whichever shall first occur. 

Notwithstanding the termination of this Agreement in accordance with the foregoing provisions of this Section 8, the respective indemnities, covenants, agreements, representations, warranties and other statements of the Seller and Selling Agent set forth in or made pursuant to this Agreement will remain operative and in full force and effect. 

8.2.

If this Agreement is terminated pursuant to Section 8.1 (a) above, the Selling Agent shall have no liability to the Seller, and if this Agreement is terminated pursuant to Section 8.1 (b) or (c) above, the Seller shall have no liability to the Selling Agent. 

9.

Miscellaneous. 

9.1

Except as otherwise specifically provided in this Agreement or as may be otherwise agreed between the parties hereto, Selling Agent, on the one hand, and the Seller, on the other, shall each pay their respective expenses incident to this Agreement and the transactions contemplated hereby (including, without limitation, the fees and disbursements of their respective counsel), and no party to the Agreement shall have any liability for such expenses incurred by any other party. 

9.2

It is understood and agreed that Selling Agent's relationship to the Seller is that of an independent contractor and that nothing herein shall be construed to create a relationship of partners, affiliates, joint venturers or employer and employee between Selling Agent or either of them and the Seller. 

9.3

No rights or interests arising hereunder may be assigned except with the prior written consent of both the Seller and the Selling Agent. Subject to this limitation, this Agreement shall inure to the benefit and be binding upon Selling Agent and the Seller and their respective successors and assigns. This Agreement is intended to be and is for the sole and exclusive benefit of the parties hereto, and their respective successors and assigns and for the benefit of no other person. Except as provided in this Agreement, nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, other than the parties to it and their respective successors and assigns, any legal or equitable right, remedy or claim under or with respect to this Agreement or any of its provisions. No purchaser of Offered Securities shall be construed as a successor or assign merely by reason of such purchase. 

9.4

If any portion of this Agreement shall be held invalid or inoperative, then so far as is reasonable and possible: 

(a)

the remainder of this Agreement shall be considered valid and operative; and 

(b)

to the extent possible under applicable law, effect shall be given to the intent manifest by the portion held invalid or inoperative. 

9.5

This Agreement may be executed in a number of identical counterparts and by facsimile, each of which shall be deemed to be an original, but all of which constitute, collectively, one and the same Agreement; but, in making proof of this Agreement, it shall not be necessary to produce or account for more than one counterpart. 

9.6

This Agreement may not be modified or amended except by written agreement executed by each of the parties to this Agreement. 

9.7

Whenever the context so requires, the masculine shall include the feminine and neuter, and the singular shall include the plural, and conversely. The words "shall" and "will" and "agrees" are mandatory, "may" is permissive. 

9.8

The parties to this Agreement covenant and agree that they will execute any other and further instruments and documents which reasonably are or may become necessary or convenient to effectuate and carry out this Agreement. 

9.9

This Agreement (and the other documents and agreements referenced herein) contains the entire understanding between the parties and supersedes prior understandings or written or oral agreements between the parties with respect to the subject matter of this Agreement. 

9.10

This Agreement shall be construed and governed by the laws of the State of Florida. Each party hereby consents to any and all actions or controversies arising from this agreement shall be have venue in the exclusive jurisdiction of the state and federal courts located in Palm Beach County, Florida. Any terms and conditions of this Agreement which are inconsistent with the terms and conditions of the Offering Document, shall be modified to conform to the terms and conditions set forth in the Offering Document. 

9.11

All notices or communications, except as otherwise specifically provided, shall be in writing, and, if sent to any party, shall be mailed, delivered or telegraphed and confirmed to that party at the address set forth below: 

			
	If to the Seller: 

	                    

	PC Universe Corp 

504 N.W. 77th Street 

Boca Raton, FI33487 

Attention: Tom Livia 

	 
	 
	 

	With a copy contemporaneously 

	 
	by like means: 

Blank Rome LLP 

1200 Federal Highway, Suite 417

Boca Raton, FL 33432 

Attn: Bruce Rosetto 

	 
	 
	 

	If to Selling Agent, to: 

	 
	Sierra Equity Group, Inc. 

7700 Congress Avenue 

Suite 3207 

Boca Raton, FL 33487 

Attention: Alan Goddard 

9.12

All of the terms of this Agreement, including all representations, warranties, covenants and agreements of Selling Agent and the Seller, shall survive completion of the Offering for three years. 

9.13

Section titles or captions contained in this Agreement are inserted only as a matter of convenience and for reference. Those titles in no way define, limit, extend or describe the scope of this Agreement, or the intent of any provision of this Agreement. 

9.14

It is agreed that the seller shall grant the selling agent the right of first refusal for two equity raises following this raise. 

9.15

The seller agrees to engage an investor relations firm reasonably satisfactory to the placement agent upon successful completion of the Offering. And will use and escrow 12% of the gross proceeds of each close for the capital markets program. 

9.16

Seller agrees that the escrow agent/bank shall act as a neutral escrow agent until both the seller and selling agent execute the designated escrow agreement. 

If the foregoing correctly sets forth the understanding between us, please indicate acceptance by signing in the space provided below for that purpose and return to us a counterpart hereof so signed, whereupon this letter and Selling Agent's acceptance shall constitute a binding agreement between us. 

			
	                                                                           

	Very truly yours, 

	 
	 
	 

	 
	SELLER. 

	 
	 
	 

	 
	By:

	/s/ Thomas M. Livia

	 
	 
	Tom Livia President

The foregoing Selling Agreement for Seller is hereby accepted and agreed to as of the date first above written. 

SIERRA EQUITY GROUP, INC. 

As Selling Agent 

		
	By: 

	/s/ Alan Goddard

	 
	Alan David Goddard CEO

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