Document:

ex102.htm

    
      
 

    EXHIBIT
      10.2

    
       

      U.S.
        Auto Parts Network, Inc.

      

      FORM
        OF SUPPLIERS’ AGREEMENT

      

      SELLER/SUPPLIER
        INFORMATION

      

      Name:
        _______________________________________Contact:
________________________

      Address:
        ____________________________________________________________________________

      City:
        __________________________________________________ State:
___________ Zip: _________

      

      Order
        Department Phone: ______________________ Contact:
_________________________________

      Fax
        Line
        Number: _____________________________ Contact:
________________________________

      Website
        Address: _____________________________ Contact:
________________________________

      Customer
        Service Phone: _______________________ Contact:
________________________________

      

      ORDER
        INFORMATION

      

      
        	
                I.

              	
                Products
                  include, but are not limited
                  to,                  ,
                  and other products as may be amended by the parties from time to
                  time.

              

      

      

      II.           Financial

      

      Pricing
        Base/ Discount Structure:

      Quote
        _____________

      Manufacturer
        Published Jobber_____________/ less

      Manufacturer
        Published WD_______________/
        less                     _

      Other______________

      

      The
        pricing will remain fixed for a
        minimum of six months with a minimum 60 day notice of change.  If a
        price decrease occurs, the lower price will be taken immediately and a credit
        will be issued from the supplier for the on hand inventory
        devaluation.

      

      Additional
        Discounts:

      a.
        Electronic Catalog Allowance____Bottom of Invoice/Off
        Invoice at line
        Item/File for
        Credit;Quarterly/Semi-Annual/Annual   

      b.
        Volume
        Discount_____________Bottom of Invoice/Off
        Invoice at line
        Item/File for
        Credit;Quarterly/Semi-Annual/Annual   

      c.
        Volume
        Rebate ______________
        Bottom of Invoice/Off Invoice at line Item/File for
        Credit;Quarterly/Semi-Annual/Annual   

      d.
        Warranty Allowance __________ Bottom of Invoice/Off
        Invoice at line
        Item/File for
        Credit;Quarterly/Semi-Annual/Annual   

      

      Payment
        Terms: Net 60 Days from the date of invoice; 5% discount if paid by
        electronic transfer within 15 days

      Prepaid
        Freight Program: __________
order value for Seller’s payment of shipping
        charges.

      

      III.           Term
        of Agreement

      

      12
        Months Commencing on
________, 2007 (“Effective Date”)

      

      IV.           Performance
        Requirements

      

      *Lead
        Time in Days for Stock Orders:  5-7
        days                                                                                                           

      *Fill
        rate for stock orders 92-95%

      Ship
        back orders 14 days

      Special
        Order/Drop shipProgram

      *Lead
        time for Special Orders: 1-3
        days                                                                           

      

      EDI/API
        capable

      Product
        UPC bar-coded

      Product
        data mapped to A.C.E.S. and/or A.A.I.A Standards

      Provide
        Material Safety Data Sheet for Products when applicable.

      Product
        Information provided in format per Exhibit B.

      (See
        Exhibit B for detailed requirements)

       

      

       

      

       

      ACCEPTANCE:

       

      By
        signing below, Buyer and Seller acknowledge and accept all terms and conditions
        of this Supply Agreement (“Agreement”), including Exhibit A and B attached
        hereto and incorporated herein, on the date set forth below.

       

      

      SELLER:

      ____________________________________                                                                                     US
        Auto Parts Network, Inc.

      

      

      BY:
        ________________________________                                                                                     By:
        ___________________________________

       

      Name
        ______________________________                                                                                     Name:
        ________________________________

       

      Title:
        _______________________________                                                                                     Title:
        _________________________________

       

      Date:
        ______________________________                                                                                     Date:
        ________________________________

       

      Contact
        For Notices

       

      U.S.
        Auto Parts Network,
        Inc.

       

      17150
        South Margay Avenue

       

      Carson,
        California 90746

       

      
        
                

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        OF SUPPLIERS’
AGREEMENT

      

      EXHIBIT
        A

      

      TERMS
        AND CONDITIONS

      
 

      
        1.  Purchase
          and Sale.

         

        1.1.  Products.  Seller
          shall supply Products as defined in the order information section of this
          Agreement (“Order Information”) to Buyer for Buyer’s use in connection with
          Buyer’s resale of auto parts through online or other distribution
          channels.

         

        1.2.  Appointment
          as Distributor.  Seller hereby appoints Buyer as a non-exclusive
          distributor of the Products anywhere in the world through online and other
          distribution channels.  Seller grants to Buyer a non-exclusive,
          royalty-free license to use Seller’s trademarks and logos (a) to sell,
          distribute, market, promote, service and support the Products through any
          promotional, advertising, or distribution channel, including but not limited
          to,
          Internet, print, television, radio and (b) to provide a link(s) to Seller’s
          website(s) from any websites owned and/or controlled by Buyer.

         

        1.3.  Purchase
          and Supply Obligations.  The purchase and supply of Products
          hereunder is not exclusive to either party.  Buyer is not required to
          purchase Products of any quantity or at any time.  If requested by
          Seller, Buyer shall provide to Seller a non-binding forecast of the quantity
          of
          Products that Buyer expects to order in the requested forecast period.
          Buyer
          shall order Products using its standard purchase order form, and Seller
          shall
          supply such Products in accordance with the terms of this Agreement, including,
          but not limited to, the performance requirement standards set forth in
          the Order
          Information (“Performance Requirement Standards”).  In the event of
          inconsistency or conflicts between the terms and conditions of this Agreement
          on
          one hand, and those appearing on the preprinted terms and conditions of
          any
          Buyer purchase order or any other purchase order, Seller’s acknowledgement,
          authorization, or other document that may be issued by Seller or Buyer
          with
          respect to the Products on the other hand, the terms and conditions of
          this
          Agreement will govern and control.  Furthermore, any new or additional
          terms, conditions or information appearing on or accompanying such documents
          shall be of no effect unless Seller and Buyer expressly agree otherwise
          in a
          separate signed amendment.  Buyer may cancel, in whole or in part, any
          purchase order for Products submitted hereunder, with at least five (5)
          days
          notice prior to the date of shipment of such order.

         

        1.4.  Performance
          Requirement Standards.  Buyer and Seller shall meet on a
          semi-annual basis to discuss whether changes to the Performance Requirements
          Standards are necessary, due to any changing business needs of
          Buyer.

         

        1.5.  Manufacturing
          Capacity.  Seller will maintain the labor, materials, and
          manufacturing capacity necessary to produce and fill Buyer’s orders for Products
          without delay.   In the event Seller’s manufacturing capacity is
          unable to fulfill the demand for the Products, Seller will prioritize shipments
          of the Products to Buyer over shipments to any other party.  Seller
          will make best efforts to continue to identify and implement ways to reduce
          manufacturing costs to obtain a lower selling price.

         

        1.6.  Shipping;
          Freight Terms.  Seller shall deliver Products to Buyer in
          accordance with Buyer’s instructions specified in the purchase
          order.  Title to all conforming Products and risk of loss and damage
          shall pass to Buyer upon delivery by Seller to the carrier selected by
          Buyer.  All Products will be shipped FCA (Free Carrier) [Named Place],
          unless Buyer instructs otherwise.  Title to and risk of loss for
          nonconforming Products shall remain with Seller.  Seller shall deliver
          all Products to Buyer free and clear of all liens and encumbrances or other
          defects in title. Any prepaid freight program will be set forth in the
          Order
          Information.

         

        1.7.  Packaging.  All
          Products shall be packaged, marked and otherwise prepared for shipment
          by Seller
          in suitable containers in accordance with sound commercial
          practices.  Seller shall mark on containers all necessary handling,
          loading and shipping instructions.  An itemized packing list shall be
          included with each shipment.

         

        1.8.  Delivery;Scheduling.  Seller
          shall deliver Products in accordance with the delivery schedules set forth
          in
          the applicable purchase order and the Performance Requirement
          Standards.  Time and place of delivery are of the essence in the
          performance of this Agreement.  If delivery cannot be made at the
          specified time and place, Seller shall promptly notify Buyer of the earliest
          possible date for conforming delivery.  Notwithstanding such notice,
          Seller’s failure to effect conforming delivery shall entitle Buyer to revoke any
          acceptance, to cancel a shipment without liability to Seller, to receive
          a full
          refund of any amount paid, to purchase substitute products elsewhere, to
          return
          at Seller’s risk and expense all or any part of a nonconforming delivery and to
          hold Seller accountable for any additional costs incurred.  Buyer’s
          receipt of acceptance of all or part of the nonconforming delivery shall
          not
          constitute a waiver of any claim, right or remedy Buyer has under this
          Agreement
          or under applicable law.

         

        1.9.  Discontinued
          Supply.  If, during the term of this Agreement, Seller intends to
          discontinue the manufacturing of any Product, Seller shall (a) provide
          Buyer
          with a written notice at least ninety (90) days prior to discontinuance
          (“Notice
          Period”) and (b) give Buyer an opportunity to purchase any and all units of the
          Product Seller will manufacture during the Notice Period.  Buyer may,
          at its sole discretion, return to Seller any units of the Product that
          Buyer
          possessed at the time of the discontinuance notice and remained unsold
          in
          Buyer’s inventory on the effective date of discontinuance.  Seller will refund
          all
          amounts paid by Buyer for such returned Products within thirty (30) calendar
          days after receipt of the returned Products.  Buyer will be
          responsible for the shipping costs.

         

        1.10.  Stock
          Adjustment.  Within a reasonable time after each anniversary of
          the Agreement, Buyer may, at its sole discretion, return to Seller, with
          or
          without reason, any and all units of the Products that remain unsold in
          Buyer’s
          inventory on such anniversary of this Agreement.  Seller will refund
          all amounts paid by Buyer for such returned Products within thirty (30)
          calendar
          days after receipt of the returned Products.  Buyer will be
          responsible for the shipping costs.  

         

        1.11.  Inspection
          and Rejection.  Buyer may inspect and test all products at
          reasonable times before, during and after manufacture.  If any
          inspection or test is made on Seller’s premises, Seller shall provide reasonable
          facilities and assistance for the safety and convenience of Buyer’s inspectors
          in such manner as shall not unreasonably hinder or delay Seller’s
          performance.  All Products shall be received subject to Buyer’s
          inspection, testing, approval and acceptance at Buyer’s premises notwithstanding
          any inspection or testing at Seller’s premises or any prior payment for such
          Products.  Products rejected by Buyer as no conforming may be returned
          to Seller at Seller’s risk and expense.

         

        1.12.  Certificate
          of Origin.  Seller will certify to, and mark Products and
          packaging with, the country of origin, sufficient to satisfy the requirements
          of
          the customs authorities of the country of receipt and any other applicable
          law.  If Products are imported into the United States, Seller will
          provide Buyer with any documents required to prove importation and to transfer
          duty drawback rights to Buyer.

         

        1.13.  Other
          Obligations.  Where applicable, Seller will provide Buyer with
          safety information on the Products in the format specified in the Material
          Safety Data Sheet to be provided by Buyer.

         

        2.  Pricing;
          Payment.

         

        2.1.  Pricing.  The
          prices for the Products will be  those set forth in the Order
          Information and will remain fixed for a minimum of six (6) months from
          the
          Effective Date.  If, at any time thereafter, Seller plans to increase
          the prices, Seller must provide Buyer with written notice at least sixty
          (60)
          days prior to the effective date of such price increase.  The prices
          are inclusive of all packaging, but are exclusive of taxes (including,
          but not
          limited to, import duties) and shipping charges.  The shipping charges
          will be those set forth in the Order Information.  Seller warrants
          that the prices charged Buyer for the Products hereunder is as least as
          low as
          those currently being quoted by Seller to other resellers for the same
          Products
          and in like quantities.

         

        2.2.  Reseller
          Sales Tax Exemption.  If Buyer claims exemption from sales tax,
          Buyer will provide Seller with an applicable reseller sales tax exemption
          certificate(s).

         

        2.3.  Payment.  Payment
          terms will be net sixty (60) days from the date of
          invoice.   Buyer will be entitled to five percent (5%) discount
          if payment is made electronically within fifteen (15) days from the date
          of
          invoice.  Seller shall invoice Buyer within thirty (30) days after
          shipment of the applicable Products.

         

        3.  Warranty;
          Recordkeeping; Notification; Compliance with Law.

         

        3.1.  Products
          Warranty.  Seller represents and warrants that the Products shall:
          (a) conform to the specifications set forth in the applicable Product
          documentation; (b) be new, and not refurbished; (c) be free from
          defects in design, workmanship, materials and packaging; (d) be
          manufactured in a good, workmanlike manner; (e) be of good and merchantable
          quality, (f) be fit and sufficient for their intended use and for the
          purposes stated on any packaging, labeling or advertising; (g) be
          equivalent in materials, quality, fit, finish, workmanship, performance
          and
          design to any samples submitted to and approved by Buyer; (h) comply with
          all applicable laws, regulations, and applicable ISO standards and (i) be free and
          clear of all liens and encumbrances or other defects in title.  All
          express warranties provided under this Agreement are in addition to any
          other
          implied warranties and shall survive any delivery, inspections, acceptance,
          payment or resale of the Products and shall extend to Buyer and its
          customers.

         

        3.2.  Remedies
          for Breach of Warranty.  In addition to any other remedies
          available at law or in equity, if it is determined within ninety (90) days
          after
          the date of invoice that any Product delivered to Buyer does not conform
          to the
          foregoing warranties and/or other requirements set forth in a purchase
          order,
          Buyer may, at its option, require Seller (a) to deliver new replacement
          Product to Buyer no later than five (5) days after a notice of non conformance
          from Buyer or (b) refund or credit to Buyer any amount paid for such
          non-conforming Product within thirty (30) calendar days from the date of
          return
          of such Product to Seller.  Buyer will be responsible for charges for
          shipping non-conforming Products to Seller. Notwithstanding the foregoing,
          the
          remedies for breach of warranty expressly provided in this Section 3.2
          will not
          be available to non-conforming Products for which Buyer has taken the warranty
          allowance discount at the time of purchase.

         

        3.3.  Product
          Return Policy.  In addition to the remedies for breach of warranty
          as set forth in Section 3.2 above, for a period of ninety (90) days after
          the
          date of invoice, Buyer may return to Seller any Products for a full refund,
          with
          or without any reason, or whether such Products have been
          discontinued.  Seller will refund or credit to Buyer any amount paid
          for the returned Products within thirty (30) calendar days of receipt of
          such
          Products by Seller.

         

        3.4.  Representations
          Made In Packaging and Advertising.  Seller represents and warrants
          that all representations made by Seller in any packaging, labeling, advertising,
          or other marketing materials in connection with the Products shall be true
          and
          shall have been substantiated at the time that such representations are
          made.

         

        3.5.  Intellectual
          Property Warranty.  Seller represents and warrants that the
          Products do not and shall not infringe or misappropriate any rights in
          patents
          (including, but not limited to, design patents), copyrights, trade secrets,
          trademarks and service marks and any other intellectual property rights,
          and
          filed applications and registrations of the foregoing, in any country in
          the
          world (“Intellectual Property Rights”).  Seller shall notify Buyer in
          writing within five (5) business days after it has knowledge of any claim
          or
          allegation of infringement, misuse, dilution, misappropriation or other
          violation of any Intellectual Property Right in any way related to or affecting
          the Products.

         

        3.6.  Failure
          Analyses; Epidemic Failure.  In the event of any actual or
          suspected non-conformity, problem or defect with any Product, Seller shall
          cooperate with Buyer to perform failure analyses and take any necessary
          corrective action, in additional to any other remedies available to Buyer
          at law
          or in equity.  A non-conformity or defect becomes an “Epidemic
          Failure” of the Product, when a common defect cause as determined by failure
          analysis occurs in one percent or more of the units of Products delivered
          to
          Buyer’s customers during any thirty (30) days period and is traceable to a
          common root cause.  If an Epidemic Failure is declared by Buyer,
          Seller will immediately (a) dedicate sufficient resources to thoroughly
          investigate the cause of the Epidemic Failure and (b) perform root cause
          analysis and (c) implement corrective action.  Seller will be
          responsible for all costs associated with the resolution of the Epidemic
          Failure.

         

        3.7.  Inspection;
          Access.  Seller shall provide Buyer or a third party designee with
          such documentation and access to facilities and personnel specifically
          related
          to the Products as Buyer may reasonably request if necessary to comply
          with
          laws, regulations, or governing authorities.

         

        3.8.  Records.  Seller
          shall: (a) maintain traceability records for each Product, including, but
          not limited to, the lot number of each unit of Product; and (b) provide
          Buyer a copy of such records without charge upon Buyer’s request.

         

        3.9.  Required
          Notification.  Seller shall immediately notify Buyer as soon as it
          becomes aware of any: (a) defect or condition which renders or may render
          any Product ineffective or dangerous; (b) Product that is not in compliance
          with the warranties provided hereunder; (c) actual or anticipated breach or
          non-performance by Seller under the terms of this Agreement; or
          (d) regulatory or ISO inspections and/or other communications with
          regulatory or ISO authorities related to the Product.

         

        3.10.  Compliance
          with Laws.  Seller represents and warrants that: (a) the
          Products have been or shall be produced, packaged, tagged, labeled, packed,
          and
          shipped in compliance with the applicable requirements of federal, state
          and
          local laws, regulations, ordinances and administrative orders and rules
          of the
          United States, its territories and all other countries in which the Products
          is
          produced or delivered; (b) Seller and all of its affiliates, subsidiaries,
          subcontractors, suppliers and agents involved in the production or delivery
          of
          the Products have strictly adhered, and shall continue, throughout the
          term of
          any and all agreements to which Seller is a party, to strictly adhere,
          to all
          applicable federal, state and local laws, regulations and prohibitions
          of the
          United States, its territories and all countries in which the Products
          is
          produced or delivered with respect to the operation of their production
          facilities and their other business and labor practices, including, without
          limitation, all laws, regulations and prohibitions governing the working
          conditions, wages, hours and minimum age of the work force; and (c) the
          Products have not been and shall not be produced or manufactured, in whole
          or in
          part, by child labor or by convict or forced labor.  Seller shall
          provide Buyer with any guaranty of compliance with the foregoing in such
          form as
          Buyer may designate with respect to any Products.

         

        3.11.  Anti-Dumping.  Supplier
          represents and warrants that all sales of Products to Buyer shall be made
          at no
          less than fair value under the United States antidumping law and that no
          government has provided a countervailable subsidy for the Products actionable
          under U.S. law.  Supplier shall indemnify Buyer for (I) all
          antidumping and/or countervailing duties imposed on all the Products that
          is
          sold prior to the date of publication of the International Trade
          Administration's preliminary determination of sales at less than fair value
          or
          prior to the existence of countervailable subsidies and exported before
          the date
          of publication of the International Trade Administration's final determination
          of sales at less than fair value or the existence of countervailable subsidies
          and (II) any expenses (including reasonable attorneys' fees) and administrative
          costs incurred by Buyer in its participation in any United States antidumping
          or
          countervailable duty proceeding involving any Products.

         

        4.  Confidential
          Information; Intellectual Property.

         

        4.1.  Confidential
          Information.

         

        a.  “Confidential
          Information” means any information, regardless of form, related to either
          party’s business, operations, products, development, research, or know-how,
          which is not yet part of the public domain, whether such information has
          been
          disclosed or discovered prior to or during the term of this
          Agreement.  However, Confidential Information does not include
          information which: (1) was in possession of the receiving party, as
          evidenced by written records, prior to receiving it from the disclosing
          party;
          or (2) is or becomes legally part of the public domain by acts other than
          those of the receiving party after receiving it from the disclosing party;
          (3) is or becomes legally available to the receiving party from a third
          party who did not acquire the information from the disclosing party under
          obligation of confidentiality; or (4) is required to be disclosed by law or
          regulation.

         

        b.  The
          receiving party agrees that it will (1) treat the Confidential Information
          as confidential and proprietary; (2) disclose the Confidential Information
          only to those of receiving party’s employees and agents who have a need to know
          such information and ensure that those people treat the Confidential Information
          in accordance with this Agreement; (3) not divulge, in whole or in part,
          the Confidential Information to any other third party without the prior
          written
          consent of the disclosing party; and (4) limit use of the Confidential
          Information consistent with the purposes contemplated by this
          Agreement.

         

        c.  Neither
          party shall disclose any information concerning this Agreement, the identity
          of
          the parties, or the relationship between the parties without the prior
          written
          approval of an authorized representative of the other party.

         

        4.2.  Tangible
          Property.  All tangible property (other than the Products)
          provided by Buyer or Seller (each an “Originating Party”) to the other party in
          connection with this Agreement shall remain the exclusive property of the
          Originating Party, and shall be returned to the Originating Party immediately
          upon conclusion of this Agreement, or as otherwise request by the Originating
          Party; provided, however, that Buyer shall own all tangible property (including,
          without limitation, all tools, dies, molds and patterns) paid for by
          Buyer.  Each party shall safely store the tangible property of the
          other party separately from its own property, shall plainly identify such
          property as the other party’s property and shall not use, in any other manner
          whatsoever, such property except in the performance of its obligations
          under
          this Agreement.

         

        4.3.  Patents,
          Inventions and Copyrights.  All inventions, improvements, or
          discoveries conceived or made by Seller, based at least in part on Buyer’s
          Confidential Information, shall be the exclusive property of Buyer, and
          Seller
          shall cooperate in assigning, and hereby does assign, all right, title,
          and
          interest therein to Buyer.  All copyrightable works developed by
          Seller, either alone or with others, under this Agreement are “works made for
          hire” and are hereby assigned to and shall belong exclusively to Buyer, and any
          and all copyright rights to such works, including the right to copy or
          reproduce
          the works, create further derivative works, file for copyright protection,
          and
          renew such rights, are hereby assigned to, and shall be the exclusive property
          of, Buyer.

         

        5.  Insurance;
          Indemnification and Limitation of Liability.

         

        5.1.  Insurance.  Buyer
          will require product liability insurance in the amount of $1,000,000 per
          occurrence with a $2,000,000 umbrella with Buyer (U.S. Auto Parts
          Network, Inc. and affiliates) named as additional
          insured.  Seller shall obtain and maintain, at its expense, a policy
          or policies of commercial general liability insurance covering liabilities
          relating to the Products, including, but not limited to, products and completed
          operations, with a broad form Seller's endorsement naming Buyer as the
          additional insured, in those amounts and with such companies as set forth
          in the
          Seller Information Guide and containing such other provisions satisfactory
          to
          Buyer.  All such policies shall provide that the coverage thereunder
          shall not be terminated without at least thirty (30) days prior written
          notice
          to Buyer.  Certificates of insurance evidencing such coverage shall be
          submitted in advance of or concurrent with the execution of this Agreement
          by
          Seller and upon each policy renewal.  Approval of any of Seller's
          insurance policies by Buyer shall not relieve Seller of any obligations
          contained herein, including, without limitation, Seller's indemnity obligations
          under Section 5.2 below, and claims in excess of Seller’s policy
          limits.  If at any time Seller does not provide Buyer with the
          certificates of insurance required hereunder or if, in Buyers’ opinion, such
          policies do not provide adequate protection for Buyer and Seller does not
          furnish evidence of acceptable coverage within fifteen (15) days after
          Buyer so
          notifies Seller, Buyer shall have the right to withhold making any payment
          which
          may be outstanding under this Agreement until evidence of acceptable coverage
          is
          provided.

         

        5.2.  Indemnification.

         

        a.  Seller
          shall indemnify, defend, and hold harmless BUYER, its affiliates and its
          subsidiaries and its and their respective present and former directors,
          officers, employees, representatives, licensees, distributors, agents,
          dealers,
          customers, independent contractors, and any person directly or indirectly
          involved in the distribution or sale of the Products  (each an
“Indemnified Party” and collectively, the "Indemnified Parties") from and
          against any and all damages, liabilities, losses, costs and expenses (including
          fees of attorneys and expert witnesses) incurred by any Indemnified Party
          in any
          claim, demand, action, lawsuit or proceeding, arising out of or in any
          way
          relating to any of the following (collectively, the “Claims”):

         

        (1)  infringement,
          misuse, dilution, misappropriation, or other violation of any Intellectual
          Property Right of a third party in any way relating to or affecting the
          Products
          for their intended use either as standalone products or in combination
          with
          other products;

         

        (2)  death
          of
          or injury to any person, damage to any property, or any other damage or
          loss, by
          whomsoever suffered, resulting or claimed to result in whole or in part
          from any
          latent or patent defect in the Products, including, without limitation
          improper
          construction, installation, repair, display, service or design of the Products,
          failure of the Products to comply with any specification or samples or
          with any
          express or implied warranties of Seller, or any claim of negligent and/or
          strict
          liability in tort relating to the Products;

         

        (3)  any
          violation of applicable laws and regulations by Seller (or its affiliates,
          subsidiaries, subcontractors, suppliers, or representatives) in the manufacture,
          possession, use or sale of the Products;

         

        (4)  the
          packaging, tagging, labeling, packing, shipping, and/ or delivery of the
          Products;

         

        (5)  failure
          to warn or to provide adequate warnings and/or instructions in the use,
          assembly, service or installation of the Products;

         

        (6)  the
          packaging, labeling or advertising claims made by Seller;

         

        (7)  the
          omission or commission of any act, lawful or unlawful, by Seller or its
          affiliates and/or their respective directors, officers or personnel, whether
          or
          not such act is within the scope of the authority or employment of such
          persons,
          including any violation of applicable laws and regulations;

         

        (8)  breach
          of
          any other representations, warranties or covenants of Seller set forth
          in this
          Agreement; or

         

        (9)  the
          assertion by a third party of a security interest, lien or other legal
          interest
          created by a factoring arrangement in any amount due Seller under an agreement
          to which Seller is a party.

         

        b.  Seller’s
          obligations to Buyer under this Section 5.2 are conditioned upon Buyer
          (1) promptly providing notice to Seller of any Claim; (2) permitting
          Seller’s counsel satisfactory to Buyer to assume the responsibility for the
          defense of such Claim; and (3) assisting Seller, at its expense, in defense
          of such Claim.  No delay on the part of Buyer in notifying Seller of
          the Claim shall relieve Seller from any obligation hereunder unless (and
          to the
          extent) Seller is materially prejudiced thereby.  Seller shall not
          compromise or settle any such Claim without Buyer’s prior
          consent.  Buyer may, at its election and at any time, take control of
          the defense and investigation of said Claim and retain counsel and other
          consultants, investigators and experts of its own choice to manage and
          defend
          any such Claim, at the cost and expense of Seller.

         

        5.3.  Limitation
          of Liability.  IN NO EVENT SHALL BUYER BE LIABLE TO SELLER,
          DIRECTLY OR INDIRECTLY, FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL
          OR
          EXEMPLARY DAMAGES, INCLUDING, BUT NOT LIMITED TO, DAMAGES FOR LOSS OF PROFITS,
          LOSS OF BUSINESS OPPORTUNITIES, GOODWILL, USE, DATA OR OTHER INTANGIBLE
          LOSSES
          (EVEN IF SELLER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), RESULTING
          FROM OR IN CONNECTION WITH THIS AGREEMENT.

         

        6.  Term;
          Termination of Agreement.  The initial term of this Agreement
          shall commence on the Effective Date and last for a period of time set
          forth in
          the Ordering Information and shall automatically renew for twelve (12)
          month
          renewal periods thereafter, unless Buyer delivers written notice of termination
          at least thirty (30) days prior to the end of the then current
          term.  Either party may terminate this Agreement with written notice
          if the other party fails to cure its material breach of this Agreement
          within
          thirty (30) days of its receipt of written notice from the other party
          of such
          breach.  Either party may immediately terminate the Agreement, and
          cancel without liability any outstanding purchase order, by giving written
          notice to the other party if the other party is insolvent or makes an assignment
          for the benefit of creditors.  Upon any expiration of the initial term
          or any renewal term of this Agreement, Buyer may, at their option, continue
          to
          purchase Products under the same terms as set forth in this Agreement until
          six
          (6) months after the expiration date, provided that the foregoing supply
          obligations shall not apply to any Product(s) that has been discontinued
          as
          described in Section 1.9.  All obligations which are by their
          nature continuing, including, without limitation, the obligations contained
          in
          Sections 3.8, 3.9, 4, 5, 6, 7 and 8 shall survive the expiration and/or
          termination of this Agreement.

         

        7.  Remedies;
          Dispute Resolution.  Termination of this Agreement, or the
          exercise of any other remedy, shall not be deemed to be an exclusive remedy,
          and
          shall be in addition to any other remedies available at law or in
          equity.  Upon termination or expiration of this Agreement, Seller
          shall, at Buyer’s option, be obligated to fulfill any open purchase
          orders.  In no event shall Buyer be required to purchase any Product
          after any termination of this Agreement due to Seller’s breach of this
          Agreement.  Seller consents to the personal and exclusive jurisdiction
          of the courts located within the county of Los Angeles, California for
          the
          resolution of any claim or dispute arising under or in connection with
          the
          Agreement.  The prevailing party in any dispute hereunder is entitled
          to recover reasonable legal fees and adjudication costs.  No failure
          or delay to enforce a provision shall be deemed a waiver thereof.

         

        8.  Other
          Representations and Warranties.  Each party hereby represents and
          warrants to the other party that: (a) the execution and delivery of and
          performance under this Agreement by such party does not, and will not,
          conflict
          with or violate any other agreement or obligations with third parties or
          any
          restrictions of any kind or any law to which it is bound or subject; and
          (b) it has the unrestricted right to disclose any information it submits to
          the other party, free of all claims of third parties, and that such disclosures
          do not breach or conflict with any confidentiality provisions of any agreement
          to which it is a party.

         

        9.  Miscellaneous.

         

        9.1.  Independent
          Contractor.  Seller is an independent contractor of Buyer, and
          neither party has the power to bind the other.

         

        9.2.  Assignment.  Seller
          shall not assign this Agreement or its obligations hereunder to any third
          party,
          whether voluntarily or involuntarily, without the express written consent
          of
          Buyer.  Buyer will be permitted to assign this Agreement without the
          consent of Seller to any entity who succeeds to Buyer by way of a merger,
          consolidation, reorganization or sale of all or substantially all of its
          assets.

         

        9.3.  Notices.  All
          requests, approvals, consents and notices must be in writing and will be
          effective as of the date sent and, unless otherwise specified in this Agreement,
          shall be sent as follows: (a) certified mail - return receipt requested;
          (b) a nationally recognized overnight delivery service that guarantees
          overnight delivery and requires the signature of recipient; or
          (c) facsimile, transmission confirmed, to the addresses and fax numbers
          indicated in this Agreement.

         

        9.4.  Governing
          Law; Entire Agreement.  This Agreement:  (a) is
          governed by the laws of California, without reference to its principles
          of
          conflicts of laws; (b) together with Exhibit A and B is the entire and
          exclusive set of terms and conditions for transactions made with respect
          to the
          Products; (c) may only be modified by a writing signed by both
          parties.

         

        9.5.  Severability;
          Remedies; Waiver.  In the event that any provision contained in
          this Agreement shall be held to be invalid, illegal or unenforceable in
          any
          respect, the validity, legality and enforceability of the remaining provisions
          contained herein shall not in any way be affected or impaired
          thereby.  The remedies contained herein are cumulative and in addition
          to any other remedies at law or in equity.  Buyer’s failure to
          enforce, or waiver of a breach of, any provision of this Agreement shall
          not
          constitute a waiver of any other breach hereof.

         

        9.6.  Force
          Majeure.  If a party’s performance is delayed because of war or
          similar unrest, fire, act of God or other similar cause that is beyond
          its
          control and which such party could not have reasonably prevented, such
          delay in
          performance shall not be considered a breach of this Agreement; provided
          however
          that if such delay continues for thirty (30) days or more, then: (a) Buyer
          may upon notice cancel all or any portion of its unfilled orders; and
          (b) Buyer may immediately terminate this Agreement.

         

        9.7.  Set-off.  Buyer
          and Seller acknowledge and agree that Buyer’s monetary obligations to Seller
          under this Agreement shall at all times be net of the indemnity obligations
          under Section 5.2 and any other monetary obligations owing by Seller to
          Buyer
          hereunder (collectively, "Seller's Monetary Obligations") and that any
          payment
          or advance made by Buyer to Seller hereunder while any Seller's Monetary
          Obligations are outstanding shall be deemed to be an overpayment to Seller
          to
          the extent of such outstanding Seller's Monetary Obligations and shall
          be
          subject to recoupment and/or set-off by Buyer.  Without limiting the
          foregoing, Buyer shall have the right, at all times, to deduct any Seller's
          Monetary Obligations from any amounts owed to Seller by Buyer, and to pay
          only
          the net sum due, if any.  Any Seller's Monetary Obligations that
          remain outstanding after any exercise by Buyer of its recoupment and/or
          set-off
          rights shall be paid by Seller promptly upon demand by Buyer.

         

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

      Exhibit
        B

       

      Product
        Information

       

      

       

      Seller’s
        spreadsheet shall include columns with information under each heading completed
        for all parts/applications and is required in Excel spreadsheet format per
        example below:

       

      

       

      
        	 	 	 	
                ***
                  ONE APPLICATION PER LINE

              	 	 	 	 	 	 	 
	 	 	 	
                ***
                  MAKE, MODEL, YEAR, CYLINDER, LITER DATA SHOULD BE ACES
                  STANDARD

              	 	 
	 	
                Note:  One
                  application per record; one make, one model, year or year
                  range.

              	 	 	 	 	 	 
	 	
                Product
                  Information: Include marketing taglines and what's included in
                  the box and
                  warranty info aside from the usual specifications.

              	 	 
	 	
                Images:
                  JPEG files only, resized for the web, do not include large
                  files.

              	 	 	 	 	 	 	 
	 	
                Images
                  shall be identified and associated per record and shall match the
                  part
                  number of product.

                Ideally,
                  the identifier will be the part number. Pricing shall include Seller’s Map
                  price, Manufacturers Published Jobber price,

                 and
                  Buyer’s cost.

              
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Part
                  #

              	
                Part
                  Type / Category / Name

              	
                Description

              	
                Make

              	
                Model

              	 	
                Year
                  From

              	
                Year
                  To

              	
                Cylinder

              	
                Liter

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Notes/Features/Benefits

              	
                Dimensions
                  LxWxH

              	
                UPC

              	
                MAP

              	
                JOBBER

              	
                USAUTO 
                  PRICE

              	
                Image
                  NameEXHIBIT 10.1

 

AMENDMENT TO SERVICES AGREEMENT

 

This amendment (“Amendment”) dated as of May 18, 2007 is by and between Barington Capital Group, L.P., a New York limited partnership with an address at 888 Seventh Avenue, 17th Floor, New York, New York 10019 (“BCG”), and Dynabazaar, Inc., a Delaware corporation with an address at 888 Seventh Avenue, 17th Floor, New York, New York 10019 (the “Company”).

 

RECITALS:

 

WHEREAS, the Company and BCG are parties to that certain Services Agreement, dated as of December 17, 2004, as amended (the “Agreement”); 

 

WHEREAS, the Company is party to the Amended and Restated Agreement and Plan of Merger entered into as of February 26, 2007 by and among the Company, L Q Corporation, Inc., a Delaware corporation, and LQ Merger Corp., a Delaware corporation and a wholly-owned subsidiary of the Company (the “Merger Agreement”);

 

WHEREAS, the Company believes that it will have sufficient resources following the closing  (the “Closing”) of the transactions contemplated by the Merger Agreement such that it will no longer be required to receive the administrative services being performed by BCG on behalf of the Company following the Closing; and

 

WHEREAS, the Company and BCG desire to amend the Agreement as set forth herein to provide for the termination of such administrative services provided for under the Agreement following the Closing.

 

NOW, THEREFORE, in consideration of the mutual covenants expressed herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

	
             
 	
            1.
 	
            Immediately following the Closing, BCG shall no longer perform for the Company the services set forth in Section 1A of the Agreement and the Company shall no longer have any payment obligations to BCG under Section 3A of the Agreement. Following the Closing, at the Company’s expense, BCG shall transfer to representatives of the Company such books and records of the Company in its possession that the Company shall request.
 

 

	
             
 	
            2.
 	
            From time to time at the request of the Company, BCG may continue to perform the services set forth in Sections 1B and 1C of the Agreement.
 

 

	
             
 	
            3.
 	
            This Amendment shall be effective as of the date hereof. The Agreement, as amended by this Amendment, is in full force and effect and is hereby ratified and confirmed.
 

	
             
 	
            4.
 	
            This Amendment may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.
 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their authorized representative as of the date set forth above.

 

	
             
 	
             
 	
            BARINGTON CAPITAL GROUP, L.P.
 
	
             
 	
             
 	
            By:  LNA Capital Corp., General Partner
 

 

	
             
 	
            By:
 	
            /s/ James A. Mitarotonda
 
	
             
 	
            Name:
 	
            James A. Mitarotonda
 
	
             
 	
            Title:
 	
            Chairman
 

 

	
             
 	
             
 	
            DYNABAZAAR, INC. 
 

 

	
             
 	
            By:
 	
            /s/ Rory Cowan
 
	
             
 	
            Name:
 	
            Rory Cowan
 
	
             
 	
            Title:
 	
            Chairman
 

 

 

2

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