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EXHIBIT 10.23  

 
 

EXECUTIVE EMPLOYMENT AGREEMENT    
  

    This EMPLOYMENT AGREEMENT ("Agreement") is executed as of the 19th day of September 2001, by and between KEVIN ELLIOTT, an individual ("Employee"), EN
POINTE TECHNOLOGIES SALES, INC., a Delaware corporation (the "Company"), with reference to the following facts: 

    A.  Employee
is an individual possessing unique management and executive talents of value to the Company. 

    B.  The
Company desires to engage Employee as the Senior Vice President of Sales of the Company, and Employee desires to accept such employment, all on the terms and
conditions set forth in this Agreement. 

AGREEMENT  

    In consideration of the foregoing recitals and of the covenants and agreements herein, the parties agree as follows: 

	1.
	Term. The Company hereby engages Employee to perform his new duties and render the services set forth in Section 2 for a
period commencing on September 17, 2001 (the "Start Date") and ending on the third anniversary of such date, (the "Employment Period") and Employee hereby accepts said employment and agrees to
perform such services during the Employment Period. Unless this Agreement is terminated pursuant to Section 4 or unless either party gives the other written notice to the contrary prior to
expiration date, this Agreement, together with any changes which have occurred during the employment period then expiring, shall automatically renew at the end of an Employment Period for an
additional one (1) year employment period.

	2.
	Duties.

	2.1.
	Senior Vice President of Sales: Performing executive work of importance to the Company, with the primary focus being the profitable
management and profitable growth of the Company. During the Employment Period, Employee shall devote his business time and attention to performing his duties as Senior Vice President of Sales of the
Company. He shall: 1) continue to build and supervise sales teams to profitably sell the company's products and services to customers of the Company; 2) manage the overall direction,
coordination, and evaluation of the Company's sales teams to achieve or exceed both the gross margin and gross revenue targets of the Company; 3) assist the Chief Operating Officer in
formulating and administering Company policies; 4) obtain profitable sales at the branches (including the headquarters branch) and virtual branches through supervision and direction of sales
management; 5) review and analyze the activities, costs, operations of the branches (including the headquarters branch) and virtual branches to define and to track their progress toward
achieving their goals and objectives; 6) carry out supervisory responsibilities in accordance with Company policies, and applicable laws; 7) interview, hire and train sales managers and
staff; 8) plan, assign and direct the work of sales managers and staff, appraise their performance, reward and discipline them, and address their complaints; 9) open new branches as
necessary; 10) submit all required documentation in a timely manner. The above description of duties in non-exhaustive. Employee shall work out of the Company's headquarters and
shall report to the Chief Operating Officer. 

Employee
recognizes that the Board of Directors of the Company may be required under its fiduciary duty to the Company and to its stockholders to eliminate the position of Senior Vice 

PAGE 1

 

President of Sales of this Company or to appoint a different person as such officer of this Company. The parties agree however, that any such elimination or replacement of Employee by the Company,
other than pursuant to Section 2.2 or Section 4.1 or 4.2.1 or 4.3.2 hereof, shall constitute a termination of Employee's employment hereunder by the Company without cause. 

	2.2.
	Change
of Control. Notwithstanding the terms of Section 2.1 above, if the Company or a significant portion thereof is sold or merged or undergoes a change of control
transaction (as defined in the form of Parent's Stock Option Agreement, a copy of which is attached hereto as Exhibit A), this Agreement shall survive consummation of such transaction and shall
continue in effect for the remainder of the Employment Period, but Employee shall serve as an officer of the entity which succeeds to the business or a substantial portion of the business of the
Company, and in such case shall bear a suitable title and perform the duties and functions of such office of such publicly traded or privately held successor, consistent with those customarily
performed by an officer of such a unit, division or entity comparable to the then business of the Company, unit, division or entity. Employee may be required to accept greater or lesser responsibility
by any successor, and agrees to fully cooperate and assist in any resulting transition for up to the remainder of the Employment Period; and any adjustments required of Employee to complete the
transition to any successor, unit, division or entity, shall not violate this Agreement so long as "good reason" does not arise under Sections 4.6.2(iii).

	2.3.
	Conflict
of Interest. Employee agrees that during the term of employment and for a period of eighteen (18) months thereafter, employee will not, directly or indirectly,
compete with the Company in any way, or usurp any Company opportunity in any way, nor will Employee act as an officer, director, employee, consultant, stockholder, lender or agent of any entity which
is engaged in any business in which the Company is now engaged or in which the Company becomes engaged during the term of employment. The Company is now engaged in the business of reselling computer
hardware, software and peripherals, primarily to corporate and governmental accounts, and in the business of selling computer systems consulting, help and maintenance services, also primarily to
corporate and governmental accounts. The company is not now engaged in the business of manufacturing computers or their primary components, nor is it now in the business of reselling computers to
non-end users. The Company may become engaged in the business of assembling computers from primary components manufactured by others and may become engaged in the business of catalog,
mail-order or internet sales. Employee also agrees that during the term of employment and for a period of eighteen (18) months thereafter, Employee will not, directly or indirectly,
whether on his own behalf or on behalf of another, offer employment or a consulting agreement to any Company employee, nor will Employee, nor Employee's employer, directly or indirectly, whether on
his own behalf or on behalf of another, actually employ or grant a consulting assignment to and Company employee. Employee also agrees that during the term of employment and for a period of eighteen
(18) months thereafter, Employee will not, directly or indirectly, whether on his own behalf or on behalf of another contact or solicit any of Company's clients to do business with any other
entity other than the Company. 

	3.
	Compensation. As compensation for his services to be performed hereunder, the Company shall provide Employee with the following
compensation and benefits:

	3.1.
	Base Salary. Employee's base salary shall be $190,000.00 per year, subject to an annual increase (if any) in the sole discretion of
the Board of Directors, payable in accordance with the Company's payroll practices as in effect from time to time, and subject to such withholding as is required by law. 

PAGE 2

 

	3.2.
	Bonus. A total Bonus potential of $170,000 per year, calculated as follows:

	3.2.1.
	Quarterly Revenue Bonus. Effective October 1, 2001, Employee shall be eligible to earn up
to $85,000 per year in bonuses based on Company's attainment of top line revenue during the following fiscal quarters: 

	Fiscal Quarter
	 	Top Line Revenue Must Exceed
	 	Bonus

	1st Quarter of Fiscal Year 2002	 	$	106,000,000.00	 	$	21,250.00
	2nd Quarter of Fiscal Year 2002	 	$	104,000,000.00	 	$	21,250.00
	3rd Quarter of Fiscal Year 2002	 	$	112,000,000.00	 	$	21,250.00
	4th Quarter of Fiscal Year 2002	 	$	117,000,000.00	 	$	21,250.00
	 	 	
	 	

	 	Totals	 	$	439,000,000.00	 	$	85,000.00

If
cumulative top-line revenue, without considering any bonus payments, is $439,000,000.00 through the one-year period of the bonus calculation, Employee receives the aggregate
$85,000 bonus less any bonus and/or draw previously received. Bonus is not guaranteed but, if earned, shall be payable 60 days after the end of each such quarter, except for any bonus payable
for the fourth quarter of fiscal 2001, which shall be payable 90 days after the end of such quarter. Bonus applicable to subsequent quarters, if any, shall be in the sole discretion of the
Board of Directors. If any bonus is declared or paid, it shall be subject to such withholding as is required by law. "Top line revenue" as the term is used in this Section 3.2.1, shall mean
top-line revenue from the core business of the Company excluding financial results from consolidation with, or any revenue from, or investments in, firstsource corp.,
SupplyAccess, Inc., enRamp Inc., or En Pointe Technologies Ventures, Inc., and other outside investments, and including any bonus payable under this Section 3.2, but also
excluding any "recaptures" resulting from any settlements of litigation matters regarding which charges have been previously recorded, or any "recaptures" resulting from re-categorization
of the Ontario facility, regarding which charges have been previously recorded, all calculated in accordance with generally accepted accounting principals. 

	3.2.2.
	Draw Against Quarterly Revenue Bonus. For the fiscal quarter, which begins on October 1,
2001 and ends on December 31, 2001, Employee shall be paid a draw against potential revenue bonus per the schedule shown below. Receipt of the draw is contingent upon continued employment
during the time period for which the draw applies. Thus, termination of employment during the draw period will result in the loss of any portion of the draw that was scheduled to be earned after the
date of termination. 

All
draw paid shall be "recoverable" against bonus earned by Employee. "Recoverable" is defined to mean that if, as of December 31, 2001, draw paid exceeds revenue (or pre-tax net
income) bonus earned for the above referenced fiscal quarter, then the negative bonus balance will be carried forward to
future fiscal quarters applied against any future bonuses earned until said negative balance has been erased in full. Alternately, "recoverable" shall also mean that if revenue bonus earned for the
above referenced 

PAGE 3

 

fiscal quarter exceeds draw paid, then revenue bonus paid shall be equal to revenue bonus earned less all draw paid. 

	Pay Date
	 	Draw

	10/07/01	 	$	7,084
	11/07/01	 	$	7,083
	12/07/01	 	$	7,083
	 	 	

	Total Draw Paid:	 	$	21,250

	3.2.3.
	Quarterly Pre-tax Net Income Bonus. Effective October 1, 2001, Employee shall
be eligible to earn up to $85,000 per year in bonuses based on Company's attainment of pre-tax net income during the following fiscal quarters: 

	Fiscal Quarter
	 	Pre-Tax Net Income Must Exceed
	 	Bonus

	1st Quarter of Fiscal Year 2002	 	$	650,000.00	 	$	21,250.00
	2nd Quarter of Fiscal Year 2002	 	$	750,000.00	 	$	21,250.00
	3rd Quarter of Fiscal Year 2002	 	$	1,100,000.00	 	$	21,250.00
	4th Quarter of Fiscal Year 2002	 	$	1,250,000.00	 	$	21,250.00
	 	Totals	 	$	3,750,000.00	 	$	85,000.00

If
cumulative pre-tax net income, without considering any bonus payments, is $3,750,000.00 through the one-year period of the bonus calculation, Employee receives the aggregate
$85,000 bonus less any bonus previously received. Bonus is not guaranteed but, if earned, shall be payable 60 days after the end of each such quarter, except for any bonus payable for the
fourth quarter of fiscal 2001, which shall be payable 90 days after the end of such quarter. Bonus applicable to subsequent quarters, if any, shall be in the sole discretion of the Board of
Directors. If any bonus is declared or paid, it shall be subject to such withholding as is required by law. "Pre-tax net income" as the term is used in this Section 3.2.3, shall
mean pre-tax income from the core business of the Company excluding financial results from consolidation with, or any revenue from, or investments in, firstsource corp.,
SupplyAccess, Inc., enRamp Inc., or En Pointe Technologies Ventures, Inc., and other outside investments, and including any bonus payable under this Section 3.2.3, but also
excluding any "recaptures" resulting from any settlements of litigation matters regarding which charges have been previously recorded, or any "recaptures" resulting from re-categorization
of the Ontario facility, regarding which charges have been previously recorded, all calculated in accordance with generally accepted accounting principals. 

All
bonuses are not guaranteed. Bonus applicable to subsequent periods, if any, shall be in sole discretion of the Board of Directors. If any bonus is declared or paid, it shall be such withholding as
is required by law. 

	3.3.
	Benefits.

	3.3.1.
	Vacation. Employee shall be entitled to vacation time as he has accrued each pay period since his
date of hire, less any vacation taken, as follows: (i) for years 1 to 5 since his date of first hire, 3.34 hours
accrued per pay period (24 pay periods per year), subject to 80 hours per year maximum; (ii) for years after 5 since his date of first hire, 5 hours accrued per pay period (24 pay
periods per year), subject to 120 hours per year maximum. In the event Employee does not use such vacation, he shall receive, upon termination of the Employment Period, vacation pay for all
unused vacation calculated as having accrued at the applicable base salary for each relevant period of his 

PAGE 4

 

employment.
However, Employee shall endeavor to take vacation time in the year in which it is allocated to him. 

	3.3.2.
	Business Expenses; Lodging. The Company shall reimburse Employee for all reasonable business
expenses incurred by Employee in the course of performing services for the Company and in compliance with procedures established from time to time by the Company. The Company shall reimburse Employee
for up to $1,200 per month for business lodging in the Los Angeles area.

	3.3.3.
	Other Benefits. Company shall provide Employee with such employment benefits as 401(k)
participation, automobile allowance, medical insurance and disability insurance, on the terms and to the extent generally provided by the Company to its senior executive employees. 401(k)
participation, medical insurance and disability insurance shall commence on first of the month following date of hire.

	3.3.4.
	Stock Options.

	3.3.4.1.
	Grant as Employee. The parent company of Company shall grant Employee incentive stock options
for 50,000 shares of parent company of Company, with the exercise price being the market price at close of trading on Employee's first hire date, and subject to the other terms of Parent's form of
stock option agreement, a copy of which is attached hereto as Exhibit A, except that vesting generally, shall be over four (4) years as follows: 25% vesting equally over six
(6) months from Employee's first hire date and the remaining 75% vests equally over the following fourteen (14) quarters, and except that "change of control" vesting shall not be
triggered by a "change in control". The issuance of the options is subject to stockholder approval of an amendment to Parent's 1996 Stock Incentive Plan and approval by Parent's Board of Directors
Compensation Committee; if there is no shareholder approval, any options in excess of those presently available under the unamended plan will be canceled. 

	3.3.5.
	Other Persons. The parties understand that other officers and employees may be afforded payments
and benefits and employment agreements which differ from those of Employee in this Agreement; but Employee's compensation and benefits shall be governed solely by the terms of this Agreement, which
shall supersede all prior understandings or agreements between the parties concerning terms and benefits of employment of Employee with the Company. Other officers or employees shall not become
entitled to any benefits under this Agreement. 

	4.
	Termination.

	4.1.
	Termination by Reason of Death or Disability. The Employment Period shall terminate upon the death or permanent disability (as
defined below) of Employee.

	4.2.
	Termination by Company.

	4.2.1.
	The
Company may terminate the Employment Period for "cause" by written notice to Employee.

	4.2.2.
	The
Company may terminate the Employment Period for any other reason, with or without cause, by written notice to Employee. 

PAGE 5

 

	4.3.
	Termination by Employee.

	4.3.1.
	Employee
may terminate the Employment Period for "good reason" at any time by written notice to the Company.

	4.3.2.
	Employee
may terminate the Employment Period for any other reason by written notice to the Company. 

	4.4.
	Severance Pay.

	4.4.1.
	In
the event the Employment Period is terminated by the Company for any reason other than pursuant to Section 4.2.1 or 4.3.2 hereof or if
the Employment Period is terminated because of the death or disability of Employee pursuant to Section 4.1, upon the effectiveness of any such termination, the Company shall be obligated to pay
to Employee (or his executors, administrators or assigns, as the case may be) all unpaid salary, benefits and bonuses (if any) accrued through the date of effectiveness of such termination and, in
addition, a cash severance payment equal to six (6) months' total base salary, at the rates set forth herein, and such other benefits as may be required by law.

	4.4.2.
	In
the event the Employment Period is terminated by the Company pursuant to Section 4.2.1 hereof, the Employment Period is terminated by
Employee pursuant to Section 4.3.2 hereof, or the Employment Period is terminated by the Company or Employee for any reason after the first anniversary of the Start Date, the Company shall have
no obligation to pay any severance pay to Employee. The Company shall, however, be obligated to pay to Employee (or his executors, administrators or assigns, as the case may be) all unpaid salary,
benefits and bonuses (if any) accrued through the date of termination and shall provide such other benefits as may be required by law. 

	4.5.
	Termination Benefits. In the event of termination of the Employment Period pursuant to Section 6.2 or 6.3(a), the Company
shall provide Employee, Employee's spouse and children with such normal medical insurance, on the terms and to the extent generally provided by the Company to its executive employees of the level
comparable to Employee, for a period of one (1) year from the date of the termination of the Employment Period.

	4.6.
	Certain Definitions. For purposes of this Agreement:

	4.6.1.
	The
term "cause" shall mean those acts identified in Section 2924 of the California Labor Code, as that section exists on the date of this
Agreement, to wit, any willful breach of duty by the Employee in the course of his employment, or in case of his habitual neglect of his duty or continued incapacity to perform it

	4.6.2.
	The
term "good reason" shall mean the occurrence of one or more of the following events without the Employee's express written consent;
(i) removal of Employee from the position and responsibilities as set forth under Section 2 above; (ii) a material reduction by the Company in the kind or level of employee
benefits to which Employee is entitled immediately prior to such reduction with the result that Employee's overall benefit package is significantly reduced; or, (iii) any material breach by the
Company of any material provision of this Agreement which continues uncured for thirty (30) days following written notice thereof.

	4.6.3.
	The
term "permanent disability" shall mean Employee's incapacity due to physical or mental illness, which results in Employee being absent from
the performance of his duties with the Company on a full-time basis for a period of six (6) consecutive months. The existence or cessation of a physical or mental illness which
renders Employee absent from the performance of his duties on a full-time basis shall, if disputed by the Company 

PAGE 6

 

or
Employee, be conclusively determined by written opinions rendered by two qualified physicians, one selected by Employee and one selected by the Company. During the period of absence, but not beyond
the expiration of the Employment Period, Employee shall be deemed to be on disability leave of absence, with his compensation paid in full. During the period of such disability leave of absence, the
Board of Directors may designate an interim officer with the same title and responsibilities of Employee on such terms as it deems proper. 

	5.
	Employee Benefit Plans. Any employee benefit plans in which Employee may participate pursuant to the terms of this Agreement shall be
governed solely by the terms of the underlying plan documents and by applicable law, and nothing in this Agreement shall impair the Company's right to amend, modify, replace, and terminate any and all
such plans in its sole discretion as provided by law. This Agreement is for the sole benefit of Employee and the Company, and is not intended to create an employee benefit plan or to modify the terms
of any of the Company's existing plans.

	6.
	Miscellaneous.

	6.1.
	Arbitration/Governing Law. To the fullest extent permitted by law, any dispute, claim or controversy of any kind (including but not
limited to tort, contract and statute) arising under, in connection with, or relating to this Agreement or Employee's employment, shall be resolved exclusively by binding arbitration in Los Angeles
County, California in accordance with the commercial rules of the American Arbitration Association then in effect. The Company and Employee agree to waive any objection to personal jurisdiction or
venue in any forum located in Los Angeles County, California. No claim, lawsuit or action of any kind may be filed by either party to this Agreement except to compel arbitration or to enforce an
arbitration award; arbitration is the exclusive dispute resolution mechanism between the parties hereto. Judgment may be entered on the arbitrator's award in any court having Jurisdiction. The
validity, interpretation, effect and enforcement of this Agreement shall be governed by the laws of the State of California.

	6.2.
	Assignment. This Agreement shall inure to the benefit of and shall be binding upon the successors and the assigns of the Company,
and all such successors and assigns shall specifically assume this Agreement. Since this Agreement is based upon the unique abilities of, and the Company's personal confidence in Employee, Employee
shall have no right to assign this Agreement or any of his rights hereunder without the prior written consent of the Company.

	6.3.
	Severability. If any provision of this Agreement shall be found invalid, such findings shall not affect the validity of the other
provisions hereof and the invalid provisions shall be deemed to have been severed herefrom.

	6.4.
	Waiver of Breach. The waiver by any party of the breach of any provision of this Agreement by the other party or the failure of any
party to exercise any right granted to it hereunder shall not operate or be construed as the waiver of any subsequent breach by such other party nor the waiver of the right to exercise any such right.

	6.5.
	Entire Agreement. This instrument, together with the plans referred to in Section 5, contains the entire agreement of the
parties. It may not be changed orally but only by an agreement in writing signed by the parties.

	6.6.
	Notices. Any notice required or permitted to be given hereunder shall be in writing and may be personally served or sent by United
States mail, and shall be deemed to have been given when personally served or two days after having been deposited in the United States mail, registered or certified mail, return receipt requested,
with first-class postage prepaid and 

PAGE 7

 

properly
addressed as follows. For the purposes hereof, the addresses of the parties hereto (until notice of a change thereof is given as provided in this Section 8.6) shall be as follows: 

	

If to Employee:	
 	

Kevin Elliott
	

 	
 	

	

 	
 	

	

If to the Company:	
 	

En Pointe Technologies, Inc.

100 N. Sepulveda Blvd., 19th Floor

El Segundo, CA 90245

Attention: CEO

	6.7.
	Headings. The paragraph and subparagraph headings herein are for convenience only and shall not affect the construction hereof.

	6.8.
	Further Assurances. Each of the parties hereto shall, from time to time, and without charge to the other parties, take such
additional actions and execute, deliver and file such additional instruments as may be reasonably required to give effect to the transactions contemplated hereby.

	6.9.
	Attorneys' Fees. In the event any party hereto commences arbitration or legal action in connection with this Agreement, the
prevailing party shall be entitled to its attorneys' fees, costs and expenses reasonably incurred in such action, and the amount thereof shall be included in any judgment or award granted under
Section 8.1.

	6.10.
	Counterparts. This Agreement may be executed simultaneously in any number of counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same instrument.

	6.11.
	Separate Counsel. The Company has been represented by counsel in the negotiation and execution of
this Agreement and has relied on such counsel with respect to any matter relating hereto. The Employee has been invited to have his own counsel review and negotiate this Agreement and Employee has
either obtained his own counsel or has elected not to obtain counsel. 

    IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the day and year first above written. 

	
"EMPLOYEE"	
 	

"COMPANY"
	 	 	 	 	 
	 	 	EN POINTE TECHNOLOGIES SALES, INC.,

a Delaware corporation
	

 	
 	

By:	
 	

 
	
	 	 	 	

	Kevin Elliott	 	Tom Scott, Chief Operating Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

PAGE 8

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EXHIBIT 10.24  

 
  Assignment and License Agreement    
  

    This Assignment and License Agreement (the "Agreement") is made and entered into as of September 21, 2001 (the "Effective Date") between
SupplyAccess, Inc. ("SupplyAccess") and En Pointe Technologies, Inc. ("En Pointe"). 

    WHEREAS,
SupplyAccess and En Pointe have entered into an Amended and Restated Information Technology Sourcing Agreement (the "IT Sourcing Agreement"), dated as of October 1,
1999; 

    WHEREAS,
SupplyAccess and En Pointe have entered into a Software License Amendment to the IT Sourcing Agreement (the "Software License"), also dated as of October 1, 1999; 

    WHEREAS,
the Parties desire to terminate the IT Sourcing Agreement and to transition certain services to En Pointe as set forth below; 

    WHEREAS,
En Pointe desires to purchase a license agreement to use the "AccessPointe" web site after August 15,2001; and 

    WHEREAS,
En Pointe desires to purchase certain hardware owned by SupplyAccess. 

    NOW,
THEREFORE, in consideration of the above premises and the covenants and agreements set forth herein, SupplyAccess and En Pointe (collectively, the "Parties") hereby agree as
follows: 

1.
Definitions 

1.1  Content means any and all text, graphics, data, and all other information and content that are displayed to individuals during their access and use
of the Web Site. Content may include, but is not limited to, images, photographs, illustrations, audio clips, video clips, product pricing, and product information. 

1.2
Confidential Information means all information, materials, documents, trade secrets, and financial reports given to a Party (the "Receiving Party")
that relate to the disclosing Party's (the Disclosing Party's) business, operations, or technical or financial information, including but not limited to, all customer lists, business processes and
methods, strategies, pricing information, data, computer models or codes (whether in source code, object code or any other form), computer processing and techniques, hardware and software
configurations, algorithms, concepts, specifications, know-how, techniques, patents (including both pending applications and issued patents), and copyrightable works that are disclosed,
directly or indirectly, by a Party, whether or not such information has been marked or identified as confidential or proprietary. Confidential Information does not include information which
(i) is or becomes generally available to the public other than as a result of an act or failure to act on the part of the Receiving Party as required or, in the case of disclosures, permitted
under this Agreement; (ii) was available to the Receiving Party on a non-confidential basis prior to its disclosure to the Receiving Party by the Disclosing Party;
(iii) becomes available to the Receiving Party on a non-confidential basis from a source other than the Disclosing Party, provided that such source is not bound by a confidentiality
agreement with the Disclosing Party known to the Receiving Party; or (iv) is independently developed by the Receiving Party without a breach of this Agreement. 

1.3
Customer Data means all data and information, either individual or aggregated, obtained or created by SupplyAccess that either identifies or can be
associated with an individual En Pointe End User or En Pointe. 

1.4
End Users means En Pointe's customers that purchase from En Pointe through or access information through the Web Site. 

1.5  En Pointe SAP Application Software means all enhancements, bug fixes, upgrades, modifications, customizations, derivative works related to the SAP
software (both object code and source code) licensed by En Pointe under the En Pointe SAP License used to run En Pointe's business (the "En Pointe SAP Licensed Software"), and copies thereof and
documentation therefor, and all information, 

 

methods, and processes and intellectual property contained therein and related thereto, created or developed by SupplyAccess, its agents or personnel, and third-party vendors in the form they exist as
of the Effective Date of this Agreement; the "Data Importer," namely the software in the form previously transferred by En Pointe to SupplyAccess that partially validates supplier data and maps such
data into a common format file to import into SAP; the En Pointe specific enhancements made to the Gentran
Software, the Clarify Software and the Vertex Software; and related pre-existing documentation and materials. This documentation shall include the following to the extent they existed
prior to the Effective Date and were or are in the possession or control of SupplyAccess: all software manuals; business requirements, functional designs and specifications, and project plans for all
projects and enhancements; SQL database diagrams and design flows; and a copy of the Production Control Log. 

1.6  Shared Applications means the portion of the En Pointe SAP Application Software that resides in software, applications, documentation, methods,
processes, materials, and intellectual property used by SupplyAccess outside of its obligations set forth in the IT Sourcing Agreement and excluding any En Pointe Confidential Information and
enhancements to the Clarify Software. 

1.7
Suppliers means those suppliers with whom En Pointe has an agreement to supply catalog information and products that may be ordered through the Web
Site. 

1.8  SupplyAccess Content means Content provided by SupplyAccess. 

2.  Termination of Prior Obligations and Transition Services

2.1
Transition Services. SupplyAccess agrees to provide to En Pointe those services as set forth in Exhibit "A" attached hereto and incorporated herein
(the "Transition Services"). While SupplyAccess will provide En Pointe with the Transition Services, as of the IT Sourcing Expiration Date (set forth in Section 2.2), En Pointe bears full
responsibility and liability for the operation and maintenance of the En Pointe SAP Application Software, the En Pointe SAP Licensed Software, and the assets listed in Exhibit B. 

2.2  Termination of IT Sourcing Agreement. Notwithstanding anything to the contrary in the IT Sourcing Agreement, the IT Sourcing Agreement is terminated
and the Term shall end at 11:59 p.m. PDT on the seventh (7th) day following the Effective Date of this Agreement (the "IT Sourcing Expiration Date"). Notwithstanding anything to the contrary in
the IT Sourcing Agreement, SupplyAccess shall have no obligation to provide Termination Transition Assistance, including all assistance set forth in Section 11.2 of the IT Sourcing Agreement,
unless specified under the terms and conditions of this Agreement. 

2.3
Termination of Software License. Notwithstanding anything to the contrary in the Software License, the Software License and the license granted
thereunder are terminated on the IT Sourcing Expiration Date. As of the IT Sourcing Expiration Date, En Pointe shall cease using the Licensed Programs in accordance with Section 5.2 of the
Software License. Notwithstanding the second provision of Section 5.2, En Pointe and En Pointe's customers shall have no right to continue to use the Licensed Programs after the IT Sourcing
Expiration Date. A copy of the Software License is attached hereto as Exhibit D. 

2.4
Assignment and Transfer of the En Pointe SAP Application Software. SupplyAccess hereby sells, assigns, transfers, and immediately delivers to En
Pointe all right, title, ownership, and interest including copyright, goodwill, and other intellectual property rights (and including any continuation, extension or renewal rights) in and to the En
Pointe SAP Application Software. The En Pointe SAP Application Software specifically excludes the SupplyAccess SAP License (as defined in Section 2.5) and the software used by SupplyAccess to
run the AccessPointe Web Site. En Pointe hereby grants SupplyAccess a non-exclusive, unrestricted, perpetual, irrevocable, assignable, transferable, world-wide,
royalty-free license to operate, modify, sublicense, sell, display, create derivative works, and otherwise use in any and all manner the software, code, ideas, methodologies, trade
secrets, know-how, confidential information, processes, goodwill, and all other intellectual property and other proprietary 

2

 

rights in the Shared Applications. SupplyAccess will own all modifications and enhancements it makes to the Shared Applications following the Effective Date of this Agreement provided that,
notwithstanding this right, En Pointe shall own all right, title and interest in and to any modification, enhancements made to and derivatives made from the Shared Applications or the En Pointe SAP
Application Software either by En Pointe, its agents or personnel or by SupplyAccess, its agents or personnel during the course of SupplyAccess', its agents or personnel, performing work for En
Pointe. 

2.5
SAP Licenses.

    (a) Notwithstanding
anything to the contrary in this Agreement, each Party, prior to the Effective Date of this Agreement, has procured and retained its own license for
use of SAP software (the "En Pointe SAP License" or the "Supply Access SAP License," whichever is applicable), and each party will be solely responsible for the continuing obligations to maintain its
own SAP License. 

    (b) Immediately
upon execution of this Agreement, SupplyAccess shall deliver to En Pointe any software (both object and source code) that is in the possession or
control of Supply Access and licensed by En Pointe under the En Pointe SAP License or other license. 

2.6
Representations and Warranties:

    (a) To
the best of SupplyAccess' knowledge, aside from the En Pointe SAP License, SupplyAccess is the sole owner of all right, title, and interest in the En Pointe SAP
Application Software as it exists as of the Effective Date of this Agreement and, to the best of SupplyAccess' knowledge, no part of the En Pointe SAP Application Software violates or infringes upon
any common law or statutory rights of any person or entity including rights related to copyrights, patents, trade secrets, contractual rights, or trade secret rights; 

    (b) SupplyAccess
represents and warrants that it has not previously assigned, licensed or otherwise transferred any rights in the En Pointe SAP Application Software to
any other party; and 

    (c) SupplyAccess
warrants that, if applicable, it will assist En Pointe in acquiring and maintaining copyright protection upon, and confirming En Pointe's title to, the
En Pointe SAP Application Software and Shared Application and documentation, at En Pointe's expense. 

2.7  Ownership.

    (a) SupplyAccess
acknowledges and agrees that En Pointe is the sole and exclusive owner of all right, title and interest in and to the En Pointe SAP License, the En
Pointe SAP Application Software, by virtue of the assignment in Section 2.4, and to the Shared Applications, subject to the license right granted to SupplyAccess of the Shared Applications in
Section 2.4, including all enhancements and modifications thereto and derivatives thereof, as of the Effective Date of this Agreement, including, but not limited to, all materials, computer
software (in object and source code) content, script, programming code, technologies, "look and feel," data, or HTML script and any trade secrets, know-how, methodologies and processes and
any intellectual property rights associated therewith (collectively, "En Pointe Materials"). SupplyAccess also acknowledges and agrees that En Pointe is the sole and exclusive owner of all right,
title and interest in and to the trademark ACCESSPOINTE and any trademark applications or registrations or domain name registrations therefor, and any goodwill associated therewith. During the Term of
this Agreement, all goodwill arising out of SupplyAccess' use of any En Pointe trademarks will inure solely to the benefit of En Pointe. SupplyAccess agrees that, except as specifically authorized in
this Agreement, all intellectual property rights in the En Pointe Materials may only be exercised by En Pointe, including the rights to copy, reproduce, modify, transmit, create derivative works from,
and file patent applications based in whole or in part on the En Pointe Materials. SupplyAccess further acknowledges and agrees that the En Pointe SAP Application Software and the Shared Applications,
prior to and as of the Effective Date, do not infringe any intellectual 

3

 

property contained or embodied in the SupplyAccess Materials (as defined in Section 3.3) and that Supply Access waives any right to make such an infringement claim hereafter. 

    (b) Customer
Data. Notwithstanding anything to the contrary in this Agreement, En Pointe shall own all right, title and interest in and to all Customer Data regardless
of where such data resides, including, without limitation, all such data residing at or in connection with the Web Site. Except to the extent necessary for SupplyAccess to use and copy the Customer
Data to operate the Web Site, SupplyAccess shall have no right to use, copy, commercialize or distribute the Customer Data. 

3.
AccessPointe

3.1
Web Site. SupplyAccess will maintain the web site available on the World Wide Web portion of the Internet and located at the following URL (Uniform
Resource Locator): accesspointe.com (the "Web Site"). The Web Site is defined by the form and the functions of the web site located at accesspointe.com as of the Effective Date of this Agreement.
SupplyAccess' maintenance of the Web Site will include the services listed in Exhibit "E." 

3.2
License to use AccessPointe. Beginning on the day after the IT Sourcing Expiration Date, SupplyAccess hereby grants to En Pointe a limited,
exclusive license, solely for the remainder of the Term of this Agreement, to use the Web Site and the SupplyAccess Content incorporated therein, and to sublicense End Users to use the Web Site and
the SupplyAccess Content incorporated therein. 

3.3
Proprietary Rights of SupplyAccess. Except to the extent En Pointe owns exclusive rights in the En Pointe SAP Application Software, and owns the
Shared Applications and to the extent that SupplyAccess has a license right in the Shared Applications as set forth in Section 2.4 of this Agreement, SupplyAccess owns and retains all right,
title and interest in all rights and interest in the assets transferred prior to the Effective Date to SupplyAccess by En Pointe, including all enhancements and modifications to those assets, the Web
Site, and all of SupplyAccess' software, SupplyAccess SAP License, SupplyAccess' products and services, and SupplyAccess' other assets (the "SupplyAccess Assets"), including, but not limited, to all
materials, computer software (in object code and source code form), content, script, programming code, technologies, "look and feel," data (excluding En Pointe Customer Data), information or HTML
script developed, provided or collected by SupplyAccess, and any trade secrets, know-how, methodologies and processes related to the SupplyAccess Assets, and including all intellectual
property rights associated with any of the foregoing (collectively "SupplyAccess Materials"). During the Term of this Agreement, all goodwill arising out of En Pointe's use of any of SupplyAccess'
trademarks will inure solely to the benefit of SupplyAccess. En Pointe agrees that, except as specifically authorized in this Agreement, all intellectual property rights in the SupplyAccess Materials
may only be exercised by SupplyAccess, including the rights to copy, reproduce, modify, transmit, create derivative works from, and file patent applications based in whole or in part on the
SupplyAccess Materials. En Pointe further specifically agrees that it will not (a) reverse engineer any part of SupplyAccess Materials; (b) disassemble, decompile, or apply any procedure
or process to the SupplyAccess Materials or any software provided by SupplyAccess in order to ascertain, derive, and/or appropriate for any reason or purpose, the source code or source listings for
the SupplyAccess Materials or SupplyAccess software or any trade secret information or process contained in the SupplyAccess Materials; or (c) otherwise use any part of the SupplyAccess
Materials to compete with SupplyAccess. Notwithstanding anything to the contrary herein, En Pointe shall be free to use the En Pointe Materials and any part thereof to compete with SupplyAccess. 

3.4
Equitable Relief. The Parties acknowledge and agree that any breach by a Party of Section 2.4, 2.7 or 3.3, whether or not such default is
continuing, will cause irreparable damage to the other Party in an amount difficult to ascertain. Accordingly, in addition to any other relief to which the non-defaulting Party may be
entitled, at law or in equity, the non-defaulting Party shall be entitled to such equitable relief as may be ordered by any arbitrator or court of competent jurisdiction including, but not
limited to, an injunction restraining any violation of Section 2.4, 2.7 or 3.3, without the proof of actual 

4

 

damages. For a breach of Section 2.4, 2.7 or 3.3, the non-breaching Party shall, in addition to any other remedy, also be entitled to receive all compensation or profits derived or
received by the breaching Party in connection with any transaction constituting a breach of Section 2.4, 2.7 or 3.3 as determined by an arbitrator or court of competent jurisdiction. 

4.
Source Code Escrow.

4.1
At the time of execution of this Agreement, the Parties shall also enter into an escrow agreement in substantially the form attached hereto as Exhibit "C" with the mutually agreed upon third party
escrow agent referred to therein ("DSI") for the purpose of placing in escrow a copy of the source code for the Web Site (located at accesspointe.com) as of the Effective Date of this Agreement and
all updates thereto, and a diagram of the technical architecture needed to install and operate the Web Site, and a complete and detailed list of all hardware and software used by SupplyAccess to
operate and maintain the Web Site as of the Effective Date and all updates thereto (the "Deposit Materials") in the event of one of the following Release Conditions and under the conditions set forth
in Section 4.3. Notwithstanding anything to the contrary, this Agreement does not create any obligation for SupplyAccess to modify or enhance the Web Site. 

    (a) Release
Condition 1 is defined as the liquidation, dissolution or bankruptcy (voluntary or involuntary) of SupplyAccess, or the appointment of a receiver or trustee
in bankruptcy. 

    (b) Release
Condition 2 is defined as the sale of all or substantially all of SupplyAccess' assets and the loss or interruption of Availability (as defined in Exhibit
"E" hereto) in excess of (i) thirty-six (36) continual hours (including both Business Hours and non-Business Hours) or (ii) within a single calendar month,
sixteen (16) hours during Business Hours. 

    (c) Release
Condition 3 is defined as the loss or interruption of Availability in excess of (i) thirty-six (36) continual hours (including
both Business Hours and non-Business Hours) or (ii) within a single calendar month, sixteen (16) hours during Business Hours. 

    (d) Notwithstanding
anything to the contrary, each Release Condition is void if En Pointe has not paid SupplyAccess the $15,000 Monthly Fee owed by En Pointe to
SupplyAccess up to the date of occurrence of the relevant Release Condition. 

4.2
Escrow Responsibilities.

    (a) En
Pointe shall be responsible for establishing the source code escrow agreement and for the costs of the escrow account. 

    (b) Within
seven (7) of the Effective Date of this Agreement, SupplyAccess shall deliver to DSI (as set forth in Exhibit C) the Deposit Materials.
SupplyAccess will confirm in writing that such backup of the Web Site operates in the same manner as the Web Site operates on the Effective Date of this Agreement when configured in accordance with
the diagram of the technical architecture needed to install and operate the Web Site. 

4.3
Release License.

    The
Release License is defined as a limited, non-exclusive, non-transferable, worldwide license, beginning as of the date the first Release Condition occurs
and terminating upon the end of the Term to use and modify the Deposit Materials only to the extent necessary to allow En Pointe to make the Web Site available for use (a) internally by En
Pointe, and (b) by En Pointe's customers for the purchase of En Pointe's products through the Web Site. The Release License specifically prohibits the resale of a web site that incorporates or
uses the Deposit Materials, or reverse engineering of the Deposit Materials to create a separate web site. During any time that En Pointe has possession of the Deposit Materials, SupplyAccess
obligations under Section 3.1 of this Agreement shall be suspended (except that Supply Access will use its best efforts to fulfill its obligations under items 1 and 2 of 

5

 

Exhibit E during the Restoration Period defined below) and En Pointe's obligations under Section 5.3 shall be suspended. If a Release License is granted pursuant to Section 4.1(c)
and SupplyAccess restores the Availability of the Web Site within fourteen (14) calendar days of the release of the Deposit Materials to En Pointe (the "Restoration Period"), then
(a) that Release License will terminate; (b) En Pointe will cease using the Deposit Materials and return all copies of the Deposit Materials to DSI; (c) SupplyAccess will resume
providing the services set forth in Section 3.1; and (d) En Pointe's obligations under Section 5.3 shall resume. The Release License is further subject to the terms and conditions
set forth in Section 4.4. Notwithstanding anything to the contrary, the Release License will automatically terminate thirty (30) days after En Pointe's use of a website not hosted by
SupplyAccess in a live production environment. 

4.4  Exclusions on Release License. If granted, the Release License will be provided to En Pointe "as is" and without warranties or indemnifications of
any kind, is subject to definitions of terms as set forth in this Agreement and the limitations of Sections 3.3, 3.4, 5.7, 5.8 and 8 of this Agreement. En Pointe acknowledges and agrees that, other
than as specifically set forth herein, SupplyAccess shall have no obligation, responsibility, or liability for the installation, integration, or any other use of the Deposit Materials by En Pointe
however SupplyAccess will use is best efforts to assist En Pointe to install and integrate the software at SA' s normal charges per hour. THE RELEASE LICENSE EXCLUDES ALL
WARRANTIES AND INDEMNIFICATIONS, EITHER EXPRESS OR IMPLIED, AND SPECIFICALLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, NONINFRINGEMENT, AND FITNESS FOR A PARTICULAR PURPOSE. EXCEPT TO THE
EXTENT NECESSARY TO SATISFY ANY LIABILITY FOR THIRD PARTY CLAIMS UNDER SECTION 3.3, IN NO EVENT SHALL EITHER PARTY OR ANY OF THEIR RESPECTIVE AFFILIATES, PARTNERS, OFFICERS, EMPLOYEES, DIRECTORS,
AGENTS, CONTRACTORS, REPRESENTATIVES, SUCCESSORS OR ASSIGNS, AS SUCH, BE LIABLE TO THE OTHER IN CONNECTION WITH THE RELEASE LICENSE, WHETHER IN CONTRACT, WARRANTY, TORT (INCLUDING WITHOUT LIMITATION
NEGLIGENCE, PRODUCT LIABILITY, DUTY TO WARN, AND STRICT LIABILITY), ANY OTHER LEGAL AND EQUITABLE GROUNDS OR OTHERWISE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL
DAMAGES (INCLUDING, BUT NOT NECESSARILY LIMITED TO, LOSS OF PROFIT, REVENUE OR USE) ARISING OUT OF SUCH PARTY'S PERFORMANCE OR NONPERFORMANCE RELATED TO THE RELEASE LICENSE, BREACH OR DEFAULT UNDER
THE RELEASE LICENSE, OR THE USE OF, INABILITY TO USE OR RESULTS OF USE OF THE DEPOSIT MATERIALS, ANY MATERIALS OR OTHER ITEMS FURNISHED UNDER THE RELEASE LICENSE, EVEN IF THE PARTY HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES. IN ANY EVENT, EXCEPT TO THE EXTENT NECESSARY TO SATISFY ANY LIABILITY FOR CLAIMS UNDER SECTION 3.3, THE TOTAL CUMULATIVE LIABILITY OF EITHER PARTY OR ANY OF THEIR
THTRD-PARTY LICENSORS, AND THEIR RESPECTIVE AFFILIATES, PARTNERS, OFFICERS, EMPLOYEES, DIRECTORS, AGENTS, CONTRACTORS, REPRESENTATIVES, SUCCESSORS AND ASSIGNS, AS SUCH, TO THE OTHER PARTY OR ANY THIRD
PARTY UNDER OR IN CONNECTION WITH THIS RELEASE LICENSE, OR ANY GOODS OR SERVICES, SHALL NOT EXCEED $1,000.00. 

5.  Fees and Hardware Sale

5.1  Fee for Assignment and Transfer of the En Pointe SAP Application Software. En Pointe agrees to pay SupplyAccess one million, fifty thousand dollars
($1,050,000.00) as consideration for the assignment and transfer of the En Pointe SAP Application Software. En Pointe agrees to pay SupplyAccess three hundred thousand dollars ($300,000.00) in cash in
accordance with the provisions of Section 5.5. The balance of the fee for the assignment and transfer of the En Pointe SAP Application Software will be paid through the discharge and release by
En Pointe of SupplyAccess' remaining obligations under a 

6

 

Promissory Note dated October 1, 1999 (and amended on February 23, 2000) for En Pointe's benefit ("Promissory Note"). The Parties agree that the Promissory Note is paid in full and
SupplyAccess has no further obligation to pay En Pointe any amounts under or arising out of the Promissory Note. 

5.2
Initial License Fee. En Pointe agrees to pay SupplyAccess a one-time non-refundable license fee of one dollar ($1.00) (the
"Initial AccessPointe License Fee") for the License to use the AccessPointe Web Site. SupplyAccess acknowledges receipt of the payment of the Initial AccessPointe License Fee. 

5.3
Monthly Fees. Beginning October 1, 2001, and for the remainder of the Term of this Agreement, En Pointe agrees to pay SupplyAccess a monthly
fee of fifteen thousand dollars ($15,000.00), in advance, for use of the Web Site and the SupplyAccess Content incorporated therein. 

5.4
In consideration of the payment of seventy-five thousand dollars ($75,000.00) in cash in accordance with the provisions of Section 5.5, SupplyAccess irrevocably sells, conveys,
assigns, transfers and delivers to En Pointe all right, title and interest in and to the assets listed in Exhibit B hereto. 

5.5  Timing of One-Time Payments. The payments owed by En Pointe to SupplyAccess under Sections 5.1 and 5.4 (the "One-Time
Payments," namely $375,000.00) shall be made as follows: (a) twenty five percent (25%) of the total of the One-Time Payments (namely $93,750.00) will be paid by En Pointe to
SupplyAccess when SupplyAccess has deposited and verifies in writing to En Pointe that the Deposit Materials have been deposited with DSI; (b) an additional twenty five percent (25%) of the
total of the OneTime Payments (namely $93,750.00) will be paid by En Pointe to SupplyAccess on the seventh (7th) day following the Effective Date of this Agreement; and (c) the remainder of the
total of the One-Time Payments (namely $187,500.00) will be paid by En Pointe to SupplyAccess on the thirtieth (30th) day following the Effective Date of this Agreement. 

5.6
Payment Terms. All amounts payable monthly to SupplyAccess hereunder shall be paid in United States dollars within fifteen (15) calendar days
of the beginning of each the month. Interest at twelve percent (12%) per annum or 1.0% accruing monthly, or the highest rate permitted under applicable law, as appropriate, shall automatically become
due on all amounts not paid when due. In addition, SupplyAccess shall be entitled to recover all costs and expenses (including attorneys' fees) associated with the collection of all past due amounts. 

5.7  Taxes. En Pointe shall pay or reimburse SupplyAccess for all sales, use, property, transfer, privilege, excise, value added, gross receipts and all
other taxes and all duties and fees, whether international, national, state or local, however designated, which are levied or imposed by reason of the granting of licenses or the performance of
services by SupplyAccess under this Agreement; excluding, however, income taxes on profits which may be levied against SupplyAccess. SupplyAccess agrees to transfer any software pursuant to this
Agreement in any manner that En Pointe desires. 

5.8
Costs and Expenses. Except as otherwise specified in this Agreement, each Party will pay its own costs and expenses associated with undertaking its
activities under this Agreement. 

6.  Term and Termination

6.1
Term. The term of this Agreement shall commence as of the Effective Date and shall expire on the two (2) year anniversary of the Effective
Date, unless sooner terminated pursuant to this Agreement (the "Term"). 

6.2
Termination for Convenience. Following the first six (6) months of the Term of this Agreement, (a) En Pointe may terminate this
Agreement upon thirty (30) days written notice to SupplyAccess; and (b) SupplyAccess may terminate this Agreement upon ninety (90) days written notice to En Pointe. If
SupplyAccess terminates this Agreement within nine (9) months of the Effective Date, SupplyAccess may, at SupplyAccess' option and subject to Section 4 of this Agreement
(a) continue to provide the services for operating and maintaining the Web Site to En Pointe as set forth in this Agreement for an additional nine (9) months; or must (b) direct
the release of the Deposit Materials to En Pointe. Upon 

7

 

such release of the Deposit Materials to En Pointe, En Pointe will be granted a Release License with a Release License Expiration Date of eighteen (18) months from the Effective Date of this
Agreement. 

6.3
Termination for Cause. Either Party may terminate this Agreement by written notice to the other Party if the other Party breaches any material
provision of this Agreement and such breach is not cured within thirty (30) days after written notice thereof. 

6.4
Remedies. All rights and remedies of either Party under this Agreement and at law and in equity shall be cumulative and not mutually exclusive and
the exercise of one right or remedy shall not be deemed a waiver of any other right or remedy. Nothing contained in any provision of this Agreement shall he construed to limit or exclude any right or
remedy of either Party (arising on account of the breach or default by the other Party or otherwise) now or hereafter existing under any other provision of this Agreement, at law or in equity. 

6.5
Survival. Notwithstanding any termination of this Agreement, the following provisions shall survive: 2.4, 3.3, 3.4, 5.5, 5.6, 5.7, 5.8, 6.4, 6.5,
7.1, 7.3, and 8 (all subsections), and all obligations to pay past due amounts under this Agreement. 

7.  Disclaimer and Limitation of Liability

7.1  Disclaimer. SupplyAccess is providing the Web Site and the services associated with the Web Site "AS IS" with no warranties of any kind, express or
implied. NEITHER PARTY MAKES ANY WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AND SPECIFICALLY DISCLAIMS THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND
NON-INFRINGEMENT. 

7.2
Indemnification. SupplyAccess shall defend and indemnify En Pointe, its officers, agents and employees from and against any and all claims,
liabilities, damages, costs and expenses (including, but not limited to, reasonable attorneys' fees) arising out of any third party claim (including, without limitation, any claims by a Solution
Provider Supplier or an End User) resulting from any breach of SupplyAccess' warranty that, to the best of SupplyAccess' knowledge, aside from the En Pointe SAP License, SupplyAccess is the sole owner
of all right, title, and interest in the En Pointe SAP Application Software. In claiming any indemnification hereunder, En Pointe shall promptly provide SupplyAccess with written notice of any claim
that En Pointe believes falls within the scope of this Section 7.2. En Pointe may, at its own expense, assist in the defense if it so chooses, provided that SupplyAccess shall control such
defense and all negotiations relative to the settlement of any such claim and further provided that any settlement intended to bind SupplyAccess shall not be final without SupplyAccess' written
consent, which shall not be unreasonably withheld. 

7.3  Limitation of Liability. AS TO THIS AGREEMENT AND THE OBLIGATIONS SET FORTH HEREIN, EXCEPT TO THE EXTENT NECESSARY TO SATISFY ANY LIABILITY FOR
CLAIMS UNDER SECTIONS 2.4, 2.7 AND 3.3, IN NO EVENT SHALL EITHER PARTY OR ANY OF THEIR RESPECTIVE AFFILIATES, PARTNERS, OFFICERS, EMPLOYEES, DIRECTORS, AGENTS, CONTRACTORS, REPRESENTATIVES, SUCCESSORS
OR ASSIGNS, AS SUCH, BE LIABLE TO THE OTHER, WHETHER IN CONTRACT, WARRANTY, TORT (INCLUDING WITHOUT LIMITATION NEGLIGENCE, PRODUCT LIABILITY, DUTY TO WARN, AND STRICT LIABILITY), ANY OTHER LEGAL AND
EQUITABLE GROUNDS OR OTHERWISE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT NECESSARILY LIMITED TO, LOSS OF PROFIT, REVENUE OR USE) ARISING
OUT OF SUCH PARTY'S PERFORMANCE OR NONPERFORMANCE OF THIS AGREEMENT, BREACH OR DEFAUL'I' UNDER THIS AGREEMENT, OR THE USE OF, INABILITY TO USE OR RESULTS OF USE OF THE WEB SITE, OR ANY
MATERIALS OR OTHER ITEMS FURNISHED UNDER THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN 

8

 

ANY EVENT, AS TO THIS AGREEMENT AND THE OBLIGATIONS SET FORTH HEREIN, EXCEPT TO THE EXTENT NECESSARY TO SATISFY ANY LIABILITY FOR CLAIMS UNDER SECTIONS 2.4, 2.7, 3.3 AND 5 (INCLUDING ALL SUBSECTIONS),
THE TOTAL CUMULATIVE LIABILITY OF EITHER PARTY OR ANY OF THEIR THIRD-PARTY LICENSORS, AND THEIR RESPECTIVE AFFILIATES, PARTNERS, OFFICERS, EMPLOYEES, DIRECTORS, AGENTS, CONTRACTORS, REPRESENTATIVES,
SUCCESSORS AND ASSIGNS, AS SUCH, TO THE OTHER PARTY OR ANY THIRD PARTY UNDER OR IN CONNECTION WITH THIS AGREEMENT, OR ANY GOODS OR SERVICES, SHALL NOT EXCEED THE TOTAL MONTHLY AMOUNT PAID TO
SUPPLYACCESS UNDER THIS AGREEMENT DURING THE CONSECUTIVE SIX (6) MONTH PERIOD IMMEDIATELY PRECEDING THE OCCURRENCE OF THE EVENT GIVING RISE TO SUCH LIABILITY. 

8.
Miscellaneous

8.1
Jurisdiction. This Agreement is made under and shall be construed in accordance with the law of the State of California, without reference to
conflict of laws principles, and both SupplyAccess and En Pointe consent to exclusive California State Court or California Federal Court jurisdiction and venue in Los Angeles County. 

8.2
Entire Agreement. This Agreement and any attached exhibits, and the Settlement Agreement dated September 21, 2001, constitute the entire
agreement between the Parties with respect to the subject matter hereof and supersedes all previous proposals, both oral and written. This Agreement may not be released, discharged, or modified except
by an instrument in writing signed by a duly authorized representative of each of the Parties. The terms of this Agreement shall prevail notwithstanding any variance with the terms and conditions or
any invoice or other such document submitted by SupplyAccess or En Pointe. En Pointe agrees that SupplyAccess is responsible only for providing the services and conveying the assets expressly set
forth in this Agreement, and SupplyAccess is not responsible for providing any other services or conveying any other property, except as set forth in a subsequent written agreement between the
Parties. 

8.3
Independent Contractors. The relationship of the Parties under this Agreement is that of independent contractors, and neither Party is an employee,
agent, partner, or joint venture of the other. 

8.4
Attorneys' Fees. In any action between the Parties to enforce any of the terms of this Agreement, the prevailing Party shall be entitled to recover
expenses, including reasonable attorneys' fees. 

8.5
Assignment. Except under a Permissible Assignment (defined below), neither Party may assign or transfer any of the rights or responsibilities set
forth herein, without the express written consent of the other Party, and any purported attempt to do so shall be deemed void. A Permissible Assignment is an assignment to an entity that (a) is
not a competitor of the other Party; and (b) either (i) directly or indirectly Controls, is Controlled by or is under common Control with that Party; or (ii) is a purchaser of all
or substantially all of the assets or shares of the assigning Party. "Control" shall be deemed to refer to the direct or indirect power (y) to vote 10% or more of the securities having ordinary
voting power for the election of directors of such entity or (z) to substantially direct or cause the direction of the management or policies of such entity, whether by contract or otherwise. 

8.6  Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, such
determination shall not affect the validity or enforceability of any other part or provision of this Agreement. 

8.7
Waiver. No waiver by any Party of any breach of any provision hereof shall constitute a waiver of any other breach of that or any other provision
hereof. 

8.8
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original instrument and all of which
together shall constitute the same instrument. 

9

 

8.9 Force Majeure. Except for the payment of fees, if the performance of any part of this Agreement by either Party is prevented, hindered, delayed or
otherwise made impracticable by reason of any flood, riot, fire, judicial or governmental action, labor disputes, act of God, or any other causes beyond the control of either Party, that Party shall
be excused from such to the extent that it is prevented, hindered or delayed by such causes. 

8.10  Headings. The section headings used herein are for reference and convenience only and shall not enter into the interpretation hereof. 

    IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first written above. 

Agreed
to and Accepted by: 

	SupplyAccess, Inc.	 	En Pointe Technologies, Inc.
	

By:	

 	
 	

By:	

 
	 	
 Authorized Representative	 	 	
 Authorized Representative
	

Name:	

 	
 	

Name:	

 
	 	
 Printed or Typed	 	 	
 Printed or Typed
	Title:	 	 	Title:	 
	 	
	 	 	

	Date:	 	 	Date:	 
	 	
	 	 	

	 	 	 	 	 
	 	 	 	 	 

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Assignment and License Agreement

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