Document:

Cash Management Agreement

 Exhibit 10.22 
  
 CASH MANAGEMENT AGREEMENT 
  
 This CASH MANAGEMENT AGREEMENT (the “Agreement”) is entered into as of January 1, 2003 by and between AF Services, Inc., a Delaware corporation
(the “Manager”), and eCOST.com, Inc. a Delaware corporation (the “Company”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Company resells technology products; and 
  
 WHEREAS, the Company wishes to contract with a provider of financial management services, including cash management and administration service; and 
  
 WHEREAS, the Manager has the necessary personnel and expertise to perform cash management, administration, and other
financial services, and the Company wishes to engage the Manager to provide such services to the Company; and 
  
 WHEREAS, the Manager desires to provide such cash management and administration services to the Company under the terms and conditions hereinafter set
forth in exchange for the consideration hereinafter set forth; 
  

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 NOW, THEREFORE, for and in consideration of the promises and the obligations undertaken by the parties
pursuant hereto, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Manager and the Company hereby agree as follows: 
  
 ARTICLE I 
 ENGAGEMENT OF MANAGER; DUTIES OF MANAGER 
  

	 	1.1	Engagement. The Company hereby retains Manager to provide certain cash management and administration services, and other financial services, to the Company.

  

	 	1.2	Duties. 

  

	 	(a)	Manager. Manager hereby covenants and agrees that it shall, during the term of this Agreement, provide the cash management and administration services hereinafter specified,
as well as all services related or ancillary thereto, and attend to such additional matters as are herein set forth. Manager shall provide such cash management and administration services, and shall dedicate such personnel and technology resources
as may be required to fulfill the obligations of Manager hereunder and to keep the Company apprised of all such services so performed by Manager. 

  

	 	(b)	Company. The Company hereby covenants and agrees that it shall pay the Manager fees in accordance with the provisions of Article III. The Company further covenants and agrees
that it shall provide the Manager with all documents and information necessary for Manager to perform all required services, and all obligations related or ancillary thereto, pursuant to this Agreement. To the extent required, the Company shall
authorize the Manager to perform such actions as may be necessary for the performance of the services described herein. 

  

	 	1.3	 Services Provided. The Services to be performed by Manager pursuant hereto are those set forth in Article II, plus such other cash management or financial
services as may be agreed to from time to time by the parties. The Company retains the right to limit the scope and nature of the services provided by Manager hereunder. Limitation by the Company of the scope and nature of the Services to be 

  

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performed by Manager, other than in connection with determining the Monthly Fee to be changed by Manager as set forth in section 3.1, shall not affect the
compensation received by Manager hereunder. 

  

	 	1.4	Independent Contractors. The relationship of Manager and the Company established by this Agreement is that of independent contractors, and nothing contained in this Agreement
shall be construed to (i) constitute the parties as partners, joint venturers, co-owners or otherwise as participants in a joint or common undertaking; (ii) create the relationship of principal and agent between the parties; (iii) prevent Manager
from entering into any other business; or (iv) allow Manager to create or assume obligations on behalf of or in the name of the Company. All financial and other obligations of Manager associated with Manager’s business are the sole
responsibility of Manager. 

  
 ARTICLE II

 SERVICES 
  

	 	2.1	Manager hereby agrees to perform cash management, administration, and related financial services for the Company concerning such funds, accounts, obligations and other financial
arrangements of the Company as the Company may designate. Such services may include, but are not limited to: account administration; accounts payable; investment; loan administration; and record maintenance. 

  

	 	2.2	Account Administration Services. Manager shall administer such financial accounts as the Company shall designate. Such accounts shall be in the name of the Company, and
Manager shall have authority to execute transactions consistent with the approval guidelines, instructions and best interests of the Company. 

  

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	 	2.3	Investment Services. Manager shall invest funds of the Company in accordance with sound investment principles and consistent with any instructions received from the Company.

  

	 	2.4	Loan Administration Services. Manager shall, consistent with the approval guidelines, instructions and best interests of the Company, administer loans, credit lines and other
financing arrangements on behalf of the Company. 

  

	 	2.5	Record Maintenance Services. Manager shall create and maintain records of all transactions executed in performing services for the Company hereunder which are adequate to
satisfy all credit, reporting, legal and other obligations of the Company. 

  
 ARTICLE III 
 FEES 
  

	 	3.1	Fees. In consideration of the Services and obligations to be performed by the Manager pursuant to this Agreement, the Company shall pay to the Manager a fee for services
rendered, invoiced monthly (“Monthly Fee”), determined in accordance with the following procedures: 

  

	 	a)	Fees shall be determined for each six month period (“Fee Period”). 

  

	 	b)	The Company shall, not later than fifteen (15) days prior to the commencement of the next Fee Period, provide to the Manager all relevant information concerning the Company’s
projected business and activities for said Fee Period in accordance with Schedule 1 hereto. 

  

	 	c)	 Based on the information provided by the Company in accordance with Schedule 1, the Manager shall, not later than five (5) days after receipt of the information,
quote the Company a monthly fee for the services and obligations to be performed by Manager under this Agreement during the next Fee Period (“Quote”). Unless rejected by the Company not later than 

  

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three (3) days after receiving the Quote, the Quote shall become the Monthly Fee payable from the Company to the Manager the subsequent Fee Period.

  

	 	d)	If the Company rejects the Quote within three (3) days of receipt, the parties hereby agree that they will in good faith negotiate a modification of the Quote and/or the services to
be performed by Manager pursuant to this Agreement. If the parties reach an agreement, the agreed upon Quote shall become the Monthly Fee payable from the Company to the Manager for the agreed upon Services during the subsequent Fee Period.

  

	 	e)	If the parties are unable, despite their good faith efforts, to reach an agreement concerning the Quote, the Agreement shall terminate thirty days (30) after the earlier of the
close of the then-ending Fee Period or the date on which the Company elects to terminate the Agreement. 

  

	 	f)	The Monthly Fee for the then-ending Fee Period, or the appropriate pro rata portion thereof, shall apply during the period from the close of the then-ending Fee Period to the date
of termination. 

  

	 	3.2	Extraordinary Expenses. 

  

	 	(a)	 In addition, at the close of each Fee Period, the Company agrees to compensate the Manager for extraordinary costs or expenses reasonably incurred during the
then-ending Fee Period as a result of any significant discrepancy between the information provided by the Company to the Manager in connection with determining the Monthly Fee for the then-ending Fee Period, and the actual experience of the Company
and the Manager during said Fee Period (“Extraordinary Expenses”). The Manager shall, not later than ten (10) days prior to the close of a Fee Period, submit an accounting of Extraordinary Expenses incurred during 

  

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the then-ending Fee Period. The Company shall review such asserted Extraordinary Expenses and compensate Manager for the portion of such Extraordinary
Expenses that the Company agrees were reasonably incurred by Manager in performing services or obligations for the Company pursuant to this Agreement. 

  

	 	(b)	If the Manager disputes the amount of Extraordinary Expenses agreed to by the Company, Manager shall promptly bring any such dispute to the attention of the Company. Any dispute not
timely raised shall be deemed waived. The Manager may resort to the dispute resolution procedures set forth herein to resolve such dispute, which shall be Manager’s sole remedy hereunder. A dispute as to the amount of Extraordinary Expenses
shall not relieve the Company of its obligation to pay timely the agreed upon amount within thirty (30) days of the date of the relevant invoice, in accordance with Section 3.3. 

  

	 	3.3	Invoicing. The Manager shall invoice the Company for services rendered on a monthly basis. The invoice for the sixth month of any Fee Period shall include any Extraordinary
Expenses agreed to by the parties, as provided in section 3.2(a). The Manager's invoices shall be due and payable by the Company not later than thirty (30) days after the date of invoice. 

  

	 	3.4	All payments by the Company required under this Section shall be made by electronic funds transfer or other mutually acceptable means.  

  
 ARTICLE IV 
 PERFORMANCE 
  

	 	4.1	 Performance Standard. Manager shall perform the services to be rendered by Manager pursuant to this Agreement in a competent and timely fashion, in
accordance with sound financial and investment principles, and in compliance 

  

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with all applicable laws and regulations. In the event Manager engages third parties to perform one or more services under the supervision of Manager in
accordance with Section 4.2, Manager shall cause such third parties to deliver each such service in accordance with the standards set forth herein. 

  

	 	4.2	Assignment. Except to the extent expressly provided herein, neither party has the right to, directly or indirectly, in whole or in part, assign, delegate, convey or otherwise
transfer, whether voluntarily, involuntarily or by operation of law, its rights and obligations under this Agreement, except with the prior written approval of the other party. Any such prohibited action will be null and void.

  

	 	4.3	Force Majeure: 

  

	 	(a)	“Force Majeure” means any event or condition, not existing as of the date of this Agreement, not reasonably foreseeable as of such date and not reasonably within the
control of either party, which prevents in whole or in material part the performance by Manager of its obligations hereunder or which renders the performance of such obligations so difficult or costly as to make such performance commercially
unreasonable. Without limiting the foregoing, the following will constitute events or conditions of Force Majeure: acts of state or governmental action, riots, disturbance, war, strikes, lockouts, slowdowns, prolonged shortage of energy supplies,
epidemics, fire, flood, hurricane, typhoon, earthquake, lightning and explosion. 

  

	 	(b)	 Upon being affected by an event of Force Majeure and after notice to the Company, Manager will be released without any liability on its part from the performance of
its obligations under this Agreement, but only to the extent and only for the period that its performance of such obligations is prevented by the event of Force Majeure. Such notice must include a description of the nature of 

  

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the event of Force Majeure, its cause and possible consequences. Manager will promptly notify the Company of the termination of such event.

  

	 	(c)	The Company is relieved of its obligation to pay the Monthly Fee, and/or any pro rata portion thereof, during the period of the event of Force Majeure. The Company is entitled,
during the period of the event of Force Majeure, to contract or provide for the performance of the Services and obligations ordinarily performed by Manager hereunder. Upon notice of termination of the event of Force Majeure and reasonable assurances
from Manager that it can satisfy the performance standards imposed pursuant to this Agreement, the Company shall consent to Manager resuming performance of the Services and obligations hereunder. 

  

	 	(d)	Any dispute between the parties regarding an asserted event of Force Majeure is subject to the dispute resolution procedures set forth in section 6.1. Such dispute resolution
procedures shall be the sole remedy of either party hereunder. 

  
 ARTICLE V 
 TERM; TERMINATION 
  

	 	5.1	Term. This Agreement shall be effective for two years following the date hereof and, unless otherwise terminated as provided herein, shall automatically renew for a one-year
period on each anniversary date thereafter unless written notice of non-renewal is given by either party to the other at least sixty (60) days prior to such anniversary date. 

  

	 	5.2	Termination. 

  

	 	(a)	This Agreement shall be terminated upon the first to occur of the following events: 

  

	 	(i)	Upon the mutual agreement of the Company and Manager; 

  

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	 	(ii)	Upon thirty (30) days written notice from the Company to the Manager; 

  

	 	(iii)	Upon failure of the parties to reach agreement concerning the Monthly Fee, as set forth in section 3.1; 

  

	 	(iv)	Upon thirty (30) days written notice of non-payment from the Manager to the Company, unless the Company pays all overdue amounts, together with interest, within twenty-one (21) days
of such notice; or 

  

	 	(v)	Upon a finding by a mediator or arbitrator presiding in dispute resolution proceedings initiated pursuant to section 6.1 that a party hereto has breached any material term,
condition or covenant of this Agreement, together with due notice of intent to terminate from the non-breaching party to the breaching party, subject to the following cure period. Written notice of intent to terminate shall be sent to the breaching
party and the breaching party shall have fifteen (15) days following receipt of such notice to remedy the default. If the breach is not cured to the satisfaction of the non-breaching party within such fifteen (15) day period, the non-breaching party
may terminate this Agreement immediately by giving further notice to such effect to the breaching party. 

  

	 	(b)	If this Agreement terminates for any reason, with or without cause, such termination shall not affect, negate or obviate any obligation of either party to the other arising prior to
the date of such termination and any termination of this Agreement shall be without prejudice to any right, remedy or recourse to which the terminating party may be entitled under this Agreement or otherwise at law or in equity.

  

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	 	(c)	Upon receipt of notice of termination, the Manager shall promptly, but any event prior to termination, provide to the Company all data, records, files and other information, in
whatever format maintained, concerning cash management and administration functions performed for the Company by the Manager. The Manager shall provide such information and support and respond to all inquiries of the Company, necessary to allow the
Company to interpret and use all such data, records, files and information transmitted to the Company, so that the Company may provide for the performance of the services performed by the Manager pursuant to this Agreement. 

 
 ARTICLE VI 
 DISPUTE RESOLUTION; LIABILITY 
  

	 	6.1	Dispute Resolution. The parties agree that they will strive to resolve amicably any dispute arising under this Agreement. In the event the parties are unable to resolve a
dispute, either party may initiate dispute resolution proceedings. All disputes between the parties hereto shall be submitted to mediation or to arbitration, at the election of the party initiating the dispute resolution proceedings. The place of
any dispute resolution shall be in Torrance, CA. Any arbitration proceeding shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The decision of the mediator or arbitrator shall be final and
binding upon the parties, and the expense of the proceedings shall be shared equally between the parties unless the mediator or arbitrator determines otherwise. Judgment upon any award rendered by an arbitrator may be entered in the Superior Court
for Los Angeles County, CA. 

  

	 	6.2	 Limitation of Liability. Manager will not be liable to Company for special, indirect, consequential or punitive damages caused by, attributable to or arising
in 

  

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connection with the performance, nonperformance or delayed performance of the services contemplated by this Agreement, or any act or omission of Manager or
any person or entity acting on behalf of Manager, whether negligent or otherwise, including, without limitation, damages relating to loss of profit or business interruption, however such damages may be caused, except for such damages attributable to
Manager’s, or such other person's or entity's fraud, bad faith or willful misconduct. Manager will not be liable for any failure to perform or any delay in the performance of its obligations hereunder due to Force Majeure (as defined in section
4.3 above) or any cause beyond the reasonable control of the Manager. 

  

	 	6.3	Indemnification. Notwithstanding anything in subsection 6.2, the Manager agrees to indemnify the Company for all sums the Company become liable to pay any third party as a
result of any breach of this Agreement by Manager, or any negligent, grossly negligent, reckless, willful or intentional conduct of the Manager. 

  

ARTICLE VII 
 REQUESTS FOR
INFORMATION 
  

	 	7.1	Requests for Information. Manager shall provide to the Company any requested documents, records, data or information within thirty (30) business days after the receipt of a
written request therefor from the Company or its authorized representatives. In addition, upon reasonable notice from the Company, Manager shall provide authorized representatives of the Company access to the books and records maintained by Manager
that pertain to the Company. 

  

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 ARTICLE VIII 
 CONFIDENTIALITY 
  

	 	8.1	Confidentiality. Manager shall hold, and shall cause its employees, accountants, attorneys and other authorized representatives to hold, in confidence and shall otherwise not
disclose to anyone other than the Company and its accountants, attorneys and other authorized representatives, together with such other individuals or organizations as may from time to time be authorized in writing by the Company or as may otherwise
be required by law, all documents, records, data and information of the Company maintained by Manager pursuant to the terms of this Agreement or otherwise revealed to Manager in connection with its performance of this Agreement. Manager shall
promptly notify the Company of any subpoena or other request or demand made to the Manager seeking documents, records, data or information concerning the Company or the Services provided hereunder, and shall resist production of any such materials
consistent with its obligations pursuant to this section. 

  
 ARTICLE IX 
 NOTICES 
  

	 	9.1	Form. Any notice, consent, authorization, direction or other communication required or permitted to be given hereunder shall be in writing and shall be delivered either by
personal delivery or by telecopier or similar telecommunication device marked “Urgent,” and addressed as follows: 

  
 In the case of Manager, to it at: 
  
 AF Services, Inc. 
 2555 W. 190th Street 
 Torrance,
CA 90504 
  
 Attention: Simon Abuyounes 
  

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 In the case of the Company, to it at: 
  
 eCOST.com, Inc. 
 2555 W. 190th Street 
 Torrance, CA 90504 
  
 Attention:
Gary Guy 
  

	 	9.2	Delivery, Receipt, and Change of Address. Any notice, consent, authorization, direction or other communication as aforesaid shall be deemed to have been effectively delivered
and received, if sent by telecopier or similar telecommunications device, on the business day of such transmission or, if the transmission occurs after 5:00 p.m. (at the place of receipt) on the next business day (proof of transmission required) or,
if delivered, to have been delivered and received on the date of such delivery; provided, however, that if such date is not a business day, then it shall be deemed to have been delivered and received on the business day next following such delivery.
The failure of any party to mark “Urgent” on a delivery shall not negate the notice provided hereunder. Any party hereto may change its address for service by written notice given as aforesaid. 

  
 ARTICLE X 
 MISCELLANEOUS 
  

	 	10.1	 Further Assurances. Manager and the Company agree, upon the reasonable request of the other, to execute, acknowledge and deliver any and all such further
instruments, and to do and perform any and all such other acts as may be 

  

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necessary or appropriate in order to carry out the intent and purposes of this Agreement. 

  

	 	10.2	Waivers or Modifications. No waiver, modification or cancellation of any term or condition of this Agreement shall be effective unless executed in writing by the party to be
charged therewith. No written waiver shall excuse the performance of any act(s) other than those specifically referred to therein. A waiver of any breach by any party hereunder shall not constitute a waiver of any subsequent breach(es) by such party
hereunder. 

  

	 	10.3	Governing Law. This Agreement and the performance hereof will be construed and governed in accordance with the laws of the California, without regard to its choice of law
principles. The parties further agree that proper venue for any action filed to enforce an arbitration decision resulting from the dispute resolution procedures set forth in section 6.1 shall be in Los Angeles County, California.

  

	 	10.4	Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable, such provision will be fully severable and this Agreement will be construed
and enforced as if such illegal, invalid or unenforceable provision never comprised a part hereof; and the remaining provisions hereof will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision
or by its severance herefrom. Furthermore, in lieu of such illegal, invalid or unenforceable provision, there will be added automatically as part of this Agreement a provision as similar in its terms to such illegal, invalid or unenforceable
provision as may be possible and be legal, valid and enforceable. 

  

	 	10.5	 Entire Agreement. This Agreement constitutes the entire Agreement between the parties hereto pertaining to the subject matter hereof and supersedes all prior
agreements, understandings, negotiations and discussions, whether oral or written, of or by and between the parties hereto in respect of such subject matter and may 

  

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not be amended except by a written instrument hereafter signed by each of the parties hereto. 

  

	 	10.6	Binding Agreement. This Agreement is binding upon, and inures to the benefit of, the parties and their respective successors. Nothing in this Agreement, expressed or implied,
is intended to confer on any person, other than the parties or their respective successors, any rights, remedies or liabilities under this Agreement. 

  

	 	10.7	Counterparts. This Agreement may be executed in one or more counterparts, each of which when so executed shall be deemed an original, and such counterparts together shall
constitute one and the same instrument. 

  

	 	10.8	No Impairment of Rights. No delay or omission by either party hereto in exercising any right, power or privilege hereunder will impair such right, power or privilege, nor
will any single or partial exercise of any such right, power or privilege preclude any further exercise thereof or the exercise of any other right, power or privilege. 

  
 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as of the
day and year first above written. 
  

			
	 AF SERVICES, INC.

		
	 By:
	 	 /s/    SIMON ABUYOUNES

	 Name:
	 	 Simon Abuyounes

	 Title:
	 	 President

			
	
	 ECOST.COM, INC.

		
	 By:
	 	 /s/    GARY GUY

	 Name:
	 	 Gary Guy

	 Title:
	 	 President

  

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 Schedule 1 
  

The Company shall timely provide to the Manager, not later than fifteen (15) days prior to commencement of the subsequent Fee Period, all relevant
information concerning the Company’s projected business and activities for the subsequent Fee Period, including, but not limited to: 
  

	 	•	The number of Company cash accounts to be administered by Manager 

  

	 	•	The Company’s projected cash flows 

  

	 	•	Estimated personnel requirements 

  
 Monthly fees for cash management and accounts payable services for the Company for the six-month period January 1, 2003 to June 30, 2003 will be $2,800.00. 
  

			
	 AF SERVICES, INC.

		
	 By:
	 	 /s/    SIMON ABUYOUNES

	 Name:
	 	 Simon Abuyounes

	 Title:
	 	 President

			
	
	 ECOST.COM, INC.

		
	 By:
	 	 /s/    GARY GUY

	 Name:
	 	 Gary Guy

	 Title:
	 	 President

  

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 Schedule 1 
  

The Company shall timely provide to the Manager, not later than fifteen (15) days prior to commencement of the subsequent Fee Period, all relevant
information concerning the Company’s projected business and activities for the subsequent Fee Period, including, but not limited to: 
  

	 	•	The number of Company cash accounts to be administered by Manager 

	 	•	The Company’s projected cash flows 

	 	•	Estimated personnel requirements 

  
 Monthly fees for cash management and accounts payable services for the Company for the six-month period July 1, 2003 to December 31, 2003 will be
$1,300.00. 
  

			
	AF SERVICES, INC.
		
	By:	 	 /s/    SIMON ABUYOUNES

	 Name:
	 	Simon Abuyounes
	 Title:
	 	 President

  

			
	ECOST.COM, INC.
		
	By:	 	 /s/    GARY GUY

	 Name:
	 	Gary Guy
	 Title:
	 	 President

 Schedule 1 
  

The Company shall timely provide to the Manager, not later than fifteen (15) days prior to commencement of the subsequent Fee Period, all relevant
information concerning the Company’s projected business and activities for the subsequent Fee Period, including, but not limited to: 
  

	 	•	The number of Company cash accounts to be administered by Manager 

	 	•	The Company’s projected cash flows 

	 	•	Estimated personnel requirements 

  
 Monthly fees for cash management and accounts payable services for the Company for the six-month period January 1, 2004 to June 30, 2004 will be
$1,300.00. 
  

			
	AF SERVICES, INC.
		
	By:	 	 /s/    SIMON ABUYOUNES

	 Name:
	 	Simon Abuyounes
	 Title:
	 	 President

  

			
	ECOST.COM, INC.
		
	By:	 	 /s/    GARY GUY

	 Name:
	 	Gary Guy
	 Title:
	 	 PresidentMerchandising Services Agreement

 Exhibit 10.23 
  
 MERCHANDISING 
 SERVICES AGREEMENT 
  
 This MERCHANDISING SERVICES
AGREEMENT (the “Agreement”) is entered into as of January 1, 2003, by and between The Mall Marketing, Inc., a Delaware corporation (“Merchandisor”) and eCOST.com, Inc. a Delaware corporation
(“Merchandisee”). 
  
 WHEREAS, the Merchandisor wishes
to perform such brand management and merchandising functions for the benefit of the Merchandisor; 
  
 NOW THEREFORE, in consideration of the promises and the mutual covenants and agreements contained herein, the parties hereto agree as follows: 

 
 ARTICLE I 
 MERCHANDISING SERVICES 
  
 1.1 Services. As consideration for the Merchandising Services Fees to be paid by Merchandisee under Article V of this Agreement, Merchandisor
hereby agrees to perform brand management and merchandising services for the “ eCOST.com” brand, including, but not limited to, identifying, designing and developing products; identifying, developing, and managing aspects of
relationships with manufacturers and vendors; developing, assembling and promoting a “eCOST.com” collection of eCOST.com and other merchandise (whether or not such products individually bear the Mark); and promoting the
“eCOST.com” brand, the Mark, and products bearing the Mark. 
  
 1.2 Exchange of Information. 
  
 a. Merchandisor shall timely provide Merchandisee all merchandising information concerning products, manufacturers, and vendors necessary to permit Merchandisee to order, purchase and market such products to
Merchandisee’s retail customers for the season for which such products are intended. Merchandisor shall, upon reasonable request by Merchandisee and from time to time at its discretion, provide Merchandisee merchandising 

  

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information regarding development of the “eCOST.com” collection, to permit Merchandisee to develop business plans and marketing strategies
and materials. 
  
 b. Merchandisee shall, upon
request from Merchandisor, and in any event not less frequently than quarterly, communicate to Merchandisor all relevant information concerning Merchandisee’s sales of “eCOST.com” merchandise, by product, and such other
information as Merchandisor shall require in connection with the brand management and merchandising services it performs for Merchandisee as set for in Section 3.1. 
  
 ARTICLE II 
 JOINT UNDERTAKINGS 
  
 2.1 Customer Loyalty
Programs. Merchandisee agrees that it will, upon reasonable request by Merchandisor, engage in programs developed by Merchandisor to promote customer loyalty to the “eCOST.com” brand. 
  
 2.2 Meetings. Merchandisor and Merchandisee shall meet from time to
time to discuss the promotion of the “eCOST.com” brand, the Mark and other aspects of the relationship between the parties. 
  
 ARTICLE III 
 MERCHANDISING
FEES 
  
 3.1 Fees. Merchandisee shall pay Merchandising
Fees (“Merchandising Fees”) in the amounts and in accordance with the procedures set forth in Schedule 1. 
  
 3.2 Payment Method. All payments by Merchandisee shall be made by account transfer or other mutually acceptable means. 
  
 ARTICLE IV 
 INDEMNIFICATION 
  
 4.1 Merchandisor hereby agrees to defend, indemnify and hold harmless Merchandisee and its directors, officers, agents and employees against any claims,
demands, causes of action, liabilities, damages, judgments, expenses (including costs and reasonable 

  

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attorneys’ fees) arising out of the use of the Mark by Merchandisee as authorized in the Agreement, provided that the Merchandisee complies with the
provisions of paragraph 2.1(b). 
  
 4.2 Neither party shall be
entitled to any consequential, incidental or indirect damages under this Agreement, including but not limited to loss of profits, damage to business, damage to business reputation or damage to business relations. Such limitation does not preclude
the recovery of such damages of any third party. 
  
 ARTICLE
V 
 TERM; TERMINATION 
  
 5.1 Term of Agreement. This term of this Agreement shall be two years, and shall automatically renew for a two-year period on each anniversary date
thereafter unless written notice of non-renewal is given by either party to the other at least one-hundred and twenty (120) days prior to such anniversary date. The provisions of Sections 4.1, 4.2, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7, 6.9, 6.11, and 6.12
shall survive the termination of this Agreement, except as otherwise specified in this Agreement. 
  
 5.2 Termination. 
  
 a. Default. Upon the occurrence of any one of the following events of default, the non-defaulting party shall have the option, on written
notice to the defaulting party, to terminate this Agreement, including any and all rights and obligations of both Merchandisor and Merchandisee hereunder, immediately upon the date specified in the notice: 
  
 (i) The transfer or attempted transfer by the defaulting
party, or any transaction the effect of which is to transfer, the license, rights, and privileges granted under this Agreement, or the right of control or right to the use thereof, other than as permitted under this Agreement; or 
  
 (ii) The cessation by the defaulting party of its business;
or 
  
 (iii) The insolvency of the defaulting
party; or 
  

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 (iv) The filing by or against the defaulting party of a voluntary or involuntary
insolvency petition in any applicable forum pursuant to any present or future insolvency law, which petition is consented to by the defaulting party or has not been dismissed within thirty (30) days after such filing; or 
  
 (v) The institution of any proceeding or arrangement by or
against the defaulting party relating to or in the nature of a bankruptcy, insolvency, or assignment for the benefit of creditors, which proceeding or arrangement is consented to by the defaulting party or is not dismissed or discontinued within
thirty (30) days after the institution of this proceeding or arrangement; or 
  
 (vi) The making of any assignment for the benefit of creditors or the appointment of a receiver of or for the defaulting party or of or for all or substantially all of the business, assets, or properties of the
defaulting party. 
  
 b. Termination after
Notice. 
  
 (i) This Agreement may be
terminated at any time by Merchandisor in the event that Merchandisee shall fail to perform any of the covenants and obligations herein contained following written notice of such failure delivered to Merchandisee by Merchandisor, stating the nature
and character thereof and allowing Merchandisee sixty (60) days to correct the failure. If the failure has not been corrected by Merchandisee within sixty (60) days, or, if such failure cannot reasonably be cured within sixty (60) days, efforts to
cure have not been initiated within sixty (60) days and diligently pursued to completion, Merchandisor may terminate this Agreement forthwith without the requirement of any additional notice to Merchandisee to that effect, and Merchandisee shall be
deemed in default. 
  
 (ii) This Agreement may be
terminated at any time by Merchandisee in the event that Merchandisor shall fail to perform any of the covenants and obligations herein contained following written notice of such failure delivered to Merchandisor by Merchandisee, stating the nature
and character thereof and allowing Merchandisor sixty (60) days to correct the failure. If the failure has not been corrected by Merchandisor within sixty (60) days, or, if such 

  

 4 

 
failure cannot reasonably be cured within sixty (60) days, efforts to cure have not been initiated within sixty (60) days and diligently pursued to
completion, Merchandisee may terminate this Agreement forthwith without the requirement of any additional notice to Merchandisor to that effect, and Merchandisor shall be deemed in default. 
  
 ARTICLE VI 
 MISCELLANEOUS 
  
 6.1 Transfer of Rights. Neither this Agreement nor any interest herein may be assigned, in whole or in part, by either party, without the written
consent of the other party. 
  
 6.2 Waiver. The failure of
either party to give notice of nonperformance or termination shall not constitute a waiver of the covenants, terms, or conditions herein, or of the rights of either party thereafter to enforce those covenants, terms, or conditions or to terminate
this Agreement upon any subsequent occurrence or date. 
  
 6.3
Remedies. In addition to the right to terminate this Agreement, each party shall have all other rights and remedies at law and in equity, including the right to injunctive relief and specific performance, for breach by the other party of the
terms and conditions of this Agreement. The parties agree that any dispute arising under this Agreement shall be resolved in accordance with the dispute resolution procedures set forth in Section 8.11. 
  
 6.4 After Termination Provisions with Respect to Such Matters as the Sale
of Inventory. 
  
 a. Upon the termination of
this Agreement, all of the rights of Merchandisee under this Agreement shall forthwith terminate and immediately revert to Merchandisor and Merchandisee shall immediately discontinue use of the Mark, except as provided in this section 6.4.

  
 6.5 Agency and Joint Venture. Neither this Agreement,
nor any transaction under or relating to this Agreement, shall be deemed to create any agency, representative, partnership or joint venture relationship between Merchandisor and Merchandisee. Neither party is authorized to act on behalf of or under
the authority of the other party. 
  

 5 

 6.6 Saleserning Law. This Agreement shall be Saleserned by the laws of the State of
California. 
  
 6.7 Confidentiality. 
  
 a. Any Merchandisor trade secrets or proprietary information
that are made available or become known to Merchandisee, including but not limited to trade secrets or proprietary information disclosed pursuant to paragraph 3.3, are to be treated as confidential, are to be used solely in connection with
Merchandisee's performance under the terms of this Agreement, and are not to be disclosed to any persons other than employees of Merchandisee who have a reasonable need for access thereto in connection with Merchandisee's performance of its duties
hereunder, except if such trade secrets or proprietary information become public knowledge through no fault of the Merchandisee or the Merchandisee is required to divulge the same by due process of law. Reasonable measures shall be taken to protect
the confidentiality of Merchandisor's trade secrets and proprietary information and any memoranda or papers containing trade secrets and proprietary information of Merchandisor that Merchandisee may receive in connection herewith are to be returned
to Merchandisor upon request. Merchandisee's obligations and duties under this paragraph shall survive any termination of this Agreement. 
  
 b. Any Merchandisee trade secrets or proprietary information that may from time to time be made available or become known to Merchandisor,
including but not limited to trade secrets or proprietary information disclosed pursuant to paragraph 3.3, are to be treated as confidential, are to be used solely in connection with Merchandisor's performance under the terms of this Agreement, and
are not to be disclosed to any persons other than employees of Merchandisor who have a reasonable need for access thereto in connection with Merchandisor's performance of its duties hereunder, except if such trade secrets or proprietary information
become public knowledge through no fault of the Merchandisor or the Merchandisor is required to divulge the same by due process of law. Reasonable measures shall be taken to protect the confidentiality of Merchandisee's trade secrets or proprietary
information and any memoranda or papers containing trade secrets or proprietary information of Merchandisee that Merchandisor 

  

 6 

 
may receive in connection herewith are to be returned to Merchandisor upon request. Merchandisor's obligations and duties under this paragraph shall survive
any termination of this Agreement. 
  
 6.8 Force Majeure.
Neither Merchandisor nor Merchandisee shall be held liable for any failure to comply with any of the terms of this Agreement when that failure is caused directly or indirectly by fire, strike, union or other labor problems, declared or undeclared
war, riots, insurrection, Salesernment restrictions or other acts, or other causes beyond the control of or without fault on the part of either of them; provided, however, that Merchandisee shall continue to be obligated to pay to Merchandisor any
and all amounts that it shall have duly become obligated to pay in accordance with the terms of this Agreement prior to the occurrence of an event of the type referred to herein, including without limitation Merchandising Services Fees which have
accrued to the date of the event of force majeure. Upon the occurrence of any event of the type referred to herein, the party affected thereby shall give prompt notice thereof to the other party, together with a description of the event and the
duration for which the party expects its ability to comply with the provisions of this Agreement to be affected thereby. The party affected shall thereafter devote its best efforts to remedy to the extent possible the condition giving rise to that
event and to resume performance of its obligations hereunder as promptly as possible. 
  
 6.9 Invalidity. If any material term or provision of this Agreement shall be or become invalid under any applicable law, the validity of the remaining parts or provisions shall not be affected thereby. The
parties expressly agree that it is not their intention to violate any public policy, statutory or common laws; that if any sentence, paragraph, clause or combination of the same is in violation of any applicable law, such sentences, paragraphs,
clauses or combinations of the same shall be inoperative and the remainder of this Agreement shall remain binding upon the parties; provided, however, that in the event of invalidity of the paragraphs herein pertaining to Merchandising Services
Fees, Merchandisee shall be obligated to pay only that portion of Merchandising Services Fees which have accrued to the date of such invalidity. 
  

 7 

 6.10 Entire Agreement. This Agreement, which for the purpose hereof shall mean and include any and
all Exhibits hereto, contains the complete agreement between the parties in respect of the subject matter hereof, and any and all prior agreements relating to the subject matter hereof are superseded in their entirety hereby. Except as specifically
provided herein, this Agreement may not be amended or supplemented, nor any of the provisions hereof waived, except by an agreement in writing signed by Merchandisee and Merchandisor. 
  
 6.11 Dispute Resolution. Any disputes between the parties shall be decided by mediation or arbitration in Los
Angeles, California in accordance with the applicable rules of the American Arbitration Association. The decision of the mediator or arbitrator shall be final and binding upon the parties hereto, the expense of the dispute resolution shall be
paid as the mediator or arbitrator may determine. Judgment upon any award rendered by an arbitrator may be entered in any court having jurisdiction thereof. 
  
 6.12 Notices. All notices, certificates, requests, demands, claims, and other communications hereunder shall be given in writing and shall be
delivered personally (including by personal courier or delivery service) or sent by facsimile or by the registered or certified mail (return receipt requested), postage prepaid, to the Parties at the following address (or at such other addresses as
the shall be specified by like notice): 
  
 If to the
Merchandisor: 
 Mall Marketing, Inc. 
 2555 W. 190th Street 
 Torrance, California 90504 
 Attention:
Michael Ousley, President 
  
 If to Merchandisee:

 eCOST.com, Inc. 
 2555 W 190th Street 
 Torrance, CA 90504 
 Attention: Gary Guy, President 
  
 Any notice given by facsimile shall be effective when the appropriate facsimile answer back
is received. 
  

 8 

 6.13 Schedules. All Schedules to this Agreement shall be incorporated in and considered a part of
this Agreement. 
  
 6.14 Counterparts. This Agreement may
be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed by their authorized officers on the day and year above first written.

  

			
	Mall Marketing, Inc.
		
	By:	 	 /s/    MICHAEL OUSLEY

	 Title: Michael Ousley, President

	
	eCOST.com, Inc.
		
	By:	 	 /s/    GARY GUY

	 Title: Gary Guy, President

  

 9 

 Schedule 1 
  
 SERVICES AND FEES 
  
 Modeling and Mining: 
  
 Conduct analysis in support of vendor marketing program to include; forecasted opportunity/customer analysis (in terms of market sizing)/scoring of
candidates for call campaigns/back-end analytics for call and mail campaigns. Conduct “special assignments” for executives. Training of sales associates on purchased lead generation applications such as CI Technology Database from
Harte-Hanks. 
  
 Building of statistical models for planning/SAS skills for
analytics/Run sampling techniques for testing of catalog circulation and monitor control/test cells for catalog circulation analysis. 
  
 Circulation Management: Provide analytics and selection for all campaigns as they relate to eCOST.com. 
  
 Processes: Propose Direct marketing catalog schedule, direct mailing
strategies/customer segmentation/customer valuation/forecasting/budgeting by title/house file selection process/outside list selection processing/insuring files are delivered to mail house and onto catalog production facility. Utilize Unica tool for
segmentation/selection process. 
  
 Advertising/ Budgeting/Financial Tracking:

  
 Responsibilities include the following: Maintain the 12
month advertising budget/Monitor shopping engines (Bots) for activities/Negotiate, source and inventory paper for; catalog production/print/Work with Vendor Marketing to insure contracts are counted towards circulation budgets. Place ads in
magazines, monitor SKU analysis for addition/suppression activities. 
  

 10 

 CRM and Database Systems Activities: 
  
 Responsible for the following components: 
  

	
	1). Selection of Vendor for Overlay Data
	2). VPS Team (File cleansing/
	    Pre-qualifying prospects prior to sending
	    to sales). Score/Rank records
	3). Lead Generation/CRM Interface tied to
	    Enterprise and Strategic Partner/s
	    (Vendor Marketing) applications
	4). Catalog Circ. Input
	5). Systems/Technologies evaluation
	6). Direct the Scoring of Dbase
	7). Delivery of Lead Pool to Reps
	8). CRM Business User
	    Sign-off on requirements
	9). eProfiler Leads delivery
	10). Call Campaign Checks

  
 Merchandising Fees. In
consideration of the brand management and merchandising services performed by Merchandisor pursuant to this Agreement, Merchandisee shall pay to Merchandisor monthly Merchandising Fees of six thousand, seven hundred fifty-seven dollars and one cent
($6,757.01). 
  
 Payment. Not later than five (5) days
after the close of each month, Merchandisee shall provide to Merchandisor an invoice for the months fees. Merchandisee shall pay the Merchandising Fees for the month within thirty (30) days after the close of each month. 
  

			
	Mall Marketing, Inc.
		
	By:	 	 /s/    MICHAEL OUSLEY

	 Title: Michael Ousley, President

	
	eCOST.com, Inc.
		
	By:	 	 /s/    GARY GUY

	 Title: Gary Guy, President

  

 11 

 Schedule 1 
  
 SERVICES AND FEES 
  
 For the period July 1, 2003 to December 31, 2003 
  
 Modeling and Mining: 
  
 Conduct analysis in support of vendor marketing program to include; forecasted opportunity/customer analysis (in terms of market sizing)/scoring of
candidates for call campaigns/back-end analytics for call and mail campaigns. Conduct “special assignments” for executives. Training of sales associates on purchased lead generation applications such as CI Technology Database from
Harte-Hanks. 
  
 Building of statistical models for planning/SAS
skills for analytics/Run sampling techniques for testing of catalog circulation and monitor control/test cells for catalog circulation analysis. 
  
 Circulation Management: Provide analytics and selection for all campaigns as they relate to eCOST.com. 
  
 Processes: Propose Direct marketing catalog schedule, direct mailing
strategies/customer segmentation/customer valuation/forecasting/budgeting by title/house file selection process/outside list selection processing/insuring files are delivered to mail house and onto catalog production facility. Utilize Unica tool for
segmentation/selection process. 
  
 Advertising/ Budgeting/Financial Tracking:

  
 Responsibilities include the following: Maintain the 12
month advertising budget/Monitor shopping engines (Bots) for activities/Negotiate, source and inventory paper for; catalog production/print/Work with Vendor Marketing to insure contracts are counted towards circulation budgets. Place ads in
magazines, monitor SKU analysis for addition/suppression activities. 
  
 CRM
and Database Systems Activities: 
  
 Responsible for the following
components: 
  

	 	1.	Selection of Vendor for Overlay Data 

	 	2.	VPS Team (File cleansing/pre-qualifying prospects prior to sending to sales). Score/Rank records. 

	 	3.	Lead Generation/CRM Interface tied to Enterprise and Strategic Partner’s (Vendor marketing) applications 

	 	4.	Catalog Circ. Input 

	 	5.	Systems/Technologies evaluation 

	 	6.	Direct the Scoring of Dbase 

	 	7.	Delivery of Lead Pool to Reps 

	 	8.	CRM Business User Sign-off on requirements 

	 	9.	eProfiler Leads delivery 

	 	10.	Call Campaign Checks 

 Merchandising Fees. In consideration of the brand management and merchandising services performed
by Merchandisor pursuant to this Agreement, Merchandisee shall pay to Merchandisor monthly Merchandising Fees of nine thousand four hundred dollars ($9,400). 
  
 Payment. Not later than five (5) days after the close of each month, Merchandisee shall provide to Merchandisor an invoice for the months fees.
Merchandisee shall pay the Merchandising Fees for the month within thirty (30) days after the close of each month. 
  

			
	Mall Marketing, Inc.
		
	By:	 	 /s/    TODD SAVITch

	 Title: Todd Savitch, President

  

			
	eCOST.com, Inc.
		
	By:	 	 /s/    GARY GUY

	 Title: Gary Guy, President

 Schedule 1 
  
 SERVICES AND FEES 
  
 For the period January 1, 2004 to June 30, 2004 
  
 Modeling and Mining: 
  
 Conduct analysis in support of vendor marketing program to include; forecasted opportunity/customer analysis (in terms of market sizing)/scoring of
candidates for call campaigns/back-end analytics for call and mail campaigns. Conduct “special assignments” for executives. Training of sales associates on purchased lead generation applications such as CI Technology Database from
Harte-Hanks. 
  
 Building of statistical models for planning/SAS
skills for analytics/Run sampling techniques for testing of catalog circulation and monitor control/test cells for catalog circulation analysis. 
  
 Circulation Management: Provide analytics and selection for all campaigns as they relate to eCOST.com. 
  
 Processes: Propose Direct marketing catalog schedule, direct mailing
strategies/customer segmentation/customer valuation/forecasting/budgeting by title/house file selection process/outside list selection processing/insuring files are delivered to mail house and onto catalog production facility. Utilize Unica tool for
segmentation/selection process. 
  
 Advertising/ Budgeting/Financial Tracking:

  
 Responsibilities include the following: Maintain the 12
month advertising budget/Monitor shopping engines (Bots) for activities/Negotiate, source and inventory paper for; catalog production/print/Work with Vendor Marketing to insure contracts are counted towards circulation budgets. Place ads in
magazines, monitor SKU analysis for addition/suppression activities. 
  
 CRM
and Database Systems Activities: 
  
 Responsible for the following
components: 
  

	 	11.	Selection of Vendor for Overlay Data 

	 	12.	VPS Team (File cleansing/pre-qualifying prospects prior to sending to sales). Score/Rank records. 

	 	13.	Lead Generation/CRM Interface tied to Enterprise and Strategic Partner’s (Vendor marketing) applications 

	 	14.	Catalog Circ. Input 

	 	15.	Systems/Technologies evaluation 

	 	16.	Direct the Scoring of Dbase 

	 	17.	Delivery of Lead Pool to Reps 

	 	18.	CRM Business User Sign-off on requirements 

	 	19.	eProfiler Leads delivery 

	 	20.	Call Campaign Checks 

 Merchandising Fees. In consideration of the brand management and merchandising services performed
by Merchandisor pursuant to this Agreement, Merchandisee shall pay to Merchandisor monthly Merchandising Fees of nine thousand four hundred dollars ($9,400). 
  
 Payment. Not later than five (5) days after the close of each month, Merchandisee shall provide to Merchandisor an invoice for the months fees.
Merchandisee shall pay the Merchandising Fees for the month within thirty (30) days after the close of each month. 
  

			
	Mall Marketing, Inc.
		
	By:	 	 /s/    TODD SAVITCH

	 Title: Todd Savitch, President

  

			
	eCOST.com, Inc.
		
	By:	 	 /s/    GARY GUY

	 Title: Gary Guy, President

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