Document:

ex1023.htm

Exhibit 10.23

 

 

 

 

 

 

 

 

 

 

FUTURE ELECTRONICS INCORPORATED

WORLDWIDE

AUTHORIZED DISTRIBUTOR

MARKET PRICE

AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

  

 

  

FUTURE ELECTRONICS INCORPORATED

WORLDWIPE

AUTHORIZED DISTRIBUTOR

MARKET PRICE

AGREEMENT

AUTHORIZED DISTRIBUTOR MARKET PRICE AGREEMENT

TABLE OF CONTENTS

	
SUBJECT

	
PAGE

	  	  
	
1 APPOINTMENT

	
1

	
2. RESPONSIBILITIES OF FUTURE

	
1

	
3. RESPONSIBILITIES OF SUPPLIER

	
2

	
4. ORDERS. DELIVERY, RESCHEDULING, CANCELLATION

	
3

	
5. PRICES

	
4

	
6. TERMS OF PAYMENT

	
5

	
7. RETURN OF PRODUCT

	
5

	
8. PRODUCT CHANGES

	
6

	
9. WARRANTY, COMPLIANCE WITH LAWS

	
7

	
10. INDEMNIFICATION

	
7

	
11. TERM AND TERMINATION

	
8

	
12. COOPERATIVE ADVERTISING

	
9

	
13. WAIVER

	
9

	
14. NOTICES

	
9

	
15. TRADEMARKS, TRADE NAMES

	
9

	
16. CONFIDENTIAL INFORMATION

	
9

	
17. SPECIAL PURCHASES

	
10

	
18. INVALIDITY OF PROVISIONS

	
10

	
19. CREDITS

	
10

	
20. CONSENT NOT UNREASONABLY WITHHELD

	
10

	
21. FORCE MAJEURE

	
10

	
22. RELATIONSHIP OF PARTIES

	
10

	
23. GENERAL

	
11

ATTACHMENT “A" - SCHEDULE OF LOCATIONS - WORLDWIDE

  

 

  

FUTURE ELECTRONICS INCORPORATED

WORLDWIDE

AUTHORIZED DISTRIBUTOR

MARKET PRICE

AGREEMENT

Agreement entered into as of the 18th day of March, 1999, by and between SURGE COMPONENTS INC. a corporation having its principal place of business at 1016 Grand Boulevard, Deer Park, NY 11729 (SUPPLIER) and FUTURE ELECTRONICS INCORPORATED, a corporation having its principal place of business at 237 Hymus Boulevard, Pointe Claire, Quebec, Canada H9R 5C7 (FUTURE).

In consideration of the mutual undertakings and agreements set forth in this Agreement and for other good and valuable consideration, receipt of which is hereby acknowledged. SUPPLIER and FUTURE ELECTRONICS INC. agree as follows:

	
1.

	
APPOINTMENT

SUPPLIER appoints FUTURE to serve during the Term (as defined in paragraph 11(a) of this Agreement) as a Worldwide Authorized Distributor of the Products, from the specific FUTURE locations described in SCHEDULE A, hereto attached and FUTURE accepts such appointment. The appointment of FUTURE is on a non-exclusive basis.

	
  

	
(a)

	
DEFINITION OF “PRODUCTS" The term "Products" shall mean all Products offered for sale by the SUPPLIER generally, as set forth and described in the SUPPLIERS then current published Distributor Price List. Products may be added the Distributor Price List or deleted therefrom by SUPPLIER upon thirty (30) calendar days prior written notice to FUTURE. Additional Products may be added to the Distributor Price List, but not approved for distributor stocking, by mutual agreement; between the parties.

	
  

	
(b)

	
DEFINITION OF “TERRITORY”. The term "Territory" shall mean specifically the geographic area is served by the locations described in Schedule A, hereto attached.

	
2.

	
RESPONSIBILITIES OF FUTURE

FUTURE shall use its reasonable best efforts, consistent with prudent business practice, and shall devote such time as may be reasonably necessary to conduct an aggressive selling program and to promote the sale, lease or other distribution of the Products within the specified Territory. Without limiting the generality of the foregoing:

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

1

  

	
  

	
(a)

	
INVENTORY. FUTURE shall use its reasonable best efforts, consistent with prudent business practice, to maintain a representative inventory of Products in reasonable sufficient quantities to provide reasonably adequate and timely delivery to customers purchasing SUPPLIER Products.

	
  

	
(b)

	
SALES AND MARKETING. FUTURE shaft maintain a competent and aggressive sales force to market and sell the Products.

	
  

	
(c)

	
ADVERTISING AND PROMOTION. FUTURE shall regularly advertise or otherwise promote the sale and distribution of the Products (including the establishment of promotional campaigns, advertising In trade journals and the like).

	
  

	
(d)

	
TRAINING PROGRAMS. FUTURE and its employees shall participate, when and to the extent SUPPLIER deems appropriate, in such training programs as may be offered from time to time by SUPPLIER.

	
  

	
(e)

	
REPORTS. FUTURE shall send to the SUPPLIER within thirty (3P) calendar days after the end of each calendar month, a report containing:

	
  

	
(i)

	
An inventory of the Products as of the end of such month,

	
  

	
(ii)

	
The quantities of all Products sold and specifying Customer Name, Product Part Number, and Resale Price.

	
3.

	
RESPONSIBILITIES OF SUPPLIES

SUPPLIER shall, at its cost and expense, cooperate with and assist FUTURE in performing its duties under this Agreement and shall utilize its reasonable best efforts to promote the sale and distribution of the Products. Without limiting the generality of the foregoing:

	
  

	
(a)

	
TRAINING. SUPPLIER shall provide FUTURE'S sales organization with what SUPPLIER considers all necessary and appropriate Product sales training, support and assistance.

	
  

	
(b)

	
LITERATURE. SUPPLIER shall furnish FUTURE with a reasonable supply of price lists, sales literature, books, catalogues and the like as SUPPLIER may prepare for national distribution and shall also provide FUTURE with such technical and sales support (including sales forecasting and planning assistance) as may be necessary to assist FUTURE in effectively carrying out its activities under this Agreement.

	
  

	
(c)

	
ADVERTISING AND PROMOTION. SUPPLIER shall use its reasonable best efforts to advertise the Products and shall take all reasonable steps to inform the public that FUTURE is an AUTHORIZED DISTRIBUTOR of the Products

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

2

  

and to encourage customers or potential customers for the Products to order the same from FUTURE.

	
  

	
(d)

	
QUALITY CONTROL SUPPLIER shall establish and maintain such quality control procedures, electrostatic discharge sensitivity procedures, testing of Products and other customary programs as are necessary to ensure that the Products, as manufactured and sold to FUTURE, are of the highest quality and reliability.

	
  

	
(e)

	
REFERRALS. SUPPLIER shall endeavor to refer customers and potential customers within the Territory to FUTURE's "Authorized Locations" for sale and service of quantities of the Products normally handled by distributors.

	
  

	
(f)

	
COMPLIANCE WITH LAWS. SUPPLIER shall take all necessary steps in order to ensure that the Products, as manufactured and sold to FUTURE, are in full compliance with all applicable laws, standards, codes and regulations, are duly marked and labeled and are suitable for resale or other distribution by FUTURE as contemplated hereby

	
4.

	
ORDERS, DELIVERY, RESCHEDULING CANCELLATION

	
  

	
(a)

	
ORDERS. Delivery of Products under this Agreement shall be !initiated by written or electronic purchase orders (or by telephonic orders) confirmed in writing by FUTURE within thirty (30) calendar days Such orders shall describe the Products ordered and the quantities thereof, shall request delivery dates, shall set forth prices and shall provide shipping instructions, where appropriate. SUPPLIER shall acknowledge each such order in writing at the earliest possible date, but in any event within fifteen (15) calendar days following receipt thereof. In such acceptance, SUPPLIER shall confirm the Requested Shipment Date or specify an Alternative Shipment Date ("Acknowledged Shipment Date") In no event shall the delivery date be in excess of six (6) weeks after the order is entered by FUTURE

	
  

	
(b)

	
METHOD OF SHIPPING. In the absence of specified instructions from FUTURE, the shipping and packaging method will be in the discretion of SUPPLIER. SUPPLER shall, consistent with sound business practice, select a method of shipping, and packaging which is suitable for the Product. In the event of any misdelivery by the Carrier, SUPPLIER shall assist FUTURE in tracing the shipment and obtaining delivery of the Products. The cost of shipping and risk of loss shall at all times be in accordance with sub-paragraphs 5(e) and 5(g) contained herein.

	
  

	
(c)

	
RESCHEDULING AND CANCELLATION. FUTURE may, prior to thirty (30) calendar days of the Acknowledged Shipment Date and with written notice at that time, reschedule the acknowledged Shipment Date of, or cancel, any order. NCNR Products may not be cancelled or rescheduled.

	
INITIAL:

	/s/  Ira Levy 	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

3

  

	
  

	
(d)

	
EARLY SHIPMENTS. if any products are delivered prior to the Acknowledged Shipment Date, FUTURE shall have the right in its discretion: to accept or reject any such delivery. If SUPPLIER is notified in writing of FUTURE's intention to return any such delivery, SUPPLIER shall promptly issue a Return Material Authorization.

	
5

	
PRICES

The prices for Products purchased under this Agreement shall be at negotiated market prices. Should FUTURE purchase any product at prices in SUPPLIER's published Distributor Price List, such prices subject to change upon thirty (30) calendar days prior written notice, the following shall apply:

	
  

	
(a)

	
PRICE INCREASES. Prior to the effective date of a price increase, FUTURE. may order Products before the price increase takes effect at the prior (lower) price. Furthermore, all Products ordered by FUTURE prior to notification or a price Increase are exempt from the increase land will be shipped and invoiced at the price in effect at the time of order placement.

	
  

	
(b)

	
PRICE DECREASES. In the event SUPPLIER decreases the price of any Product, FUTURE shall be entitled to a credit equal to the difference between the price paid for the Product by FUTURE (less any prior credits granted by SUPPLIER on such Products) and the new decreased price for the Product multiplied by the quantity of such Product in FUTURE'S inventory on the effective date of the decrease. Similar price adjustment, if appropriate, will also be made on all Products it transit to FUTURE on the effective date of the price decrease. In order to claim such credit, FUTURE shall submit to SUPPLIER, within forty-five (45) calendar days following the effective date of :such price decrease, a report of the Products subject to the price decrease and in FUTURE's inventory as of the effective date of the price decrease. All Products shipped after the effective date of any price decrease will be shipped and invoiced at the price in effect at the time of shipment. Credits will be applied to future purchases of SUPPLIER Product or to FUTURE's Accounts Receivable with SUPPLIEIR.

	
  

	
(c)

	
SHIP FROM STOCK AND DEBIT. In the event that it should become necessary, and on a by exception basis only, FUTURE shaft be permitted to sell Product to customers on a meet competition basis where FUTURE's current costs are not competitive enough for FUTURE to secure the orders. Upon receipt of the approval from the SUPPLIER, FUTURE shall be entitled to ship from stock a defined quantity and part number(s) to a specific customer at or below FUTURE's cost and issue a debit to the SUPPLIER for the difference between FUTURE'S current cost of the Product (less any prior credit granted by SUPPLIER on such Products) and the approved new cost issued by the SUPPLIER multiplied by the quantity of such Product shipped to the specific customer. In order to claim such credit, FUTURE shall submit to SUPPLIER within forty-five (45) calendar days after the sale took place, a debit note in conjunction with FUTURE'S monthly POS and Inventory Reports as specified

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

4

  

in Paragraph 2(e) Credits win be applied to future purchases of SUPPLIER Product or to FUTURE'S Accounts receivable with SUPPLIER

	
  

	
(d)

	
REPRESENTATION. SUPPLIER represents and warrants that the prices and discounts, if any, extended to FUTURE in connection with the Products comply with all applicable laws.

	
  

	
(e)

	
F.O.B. All prices are F.O.B. FUTLIPE's receiving facility.

	
  

	
(f)

	
SALES TAXES AND OTHER CHARGES. FUTURE will pay any and all applicable sales or use taxes pertaining to its purchase of the Products.

	
  

	
(g)

	
RISK OF LOSS. FUTURE shall assume all risk of loss and pay all costs of insurance far the Products upon SUPPLIER'S delivery thereof to the Common Carrier.

	
6.

	
TERMS OF PAYMENTS

SUPPLIER will invoice FUTURE upon or following shipment of each order: Such invoices shall be payable by FUTURE monthly following date of invoice. FUTURE shall be entitled to a two percent (2%) deduction on the net amount of payment when invoices dated the first (1st) through the fifteenth (15th) are paid within two (2) business days of the twenty-fifth (25th) day of the same month, and invoices dated the sixteenth (16th) through the end of the month are paid within two (2) business days of the tenth (10th) day of the following month. An invoice shall be deemed paid when the cheque is in the custody of the post office or an agreed upon courier service.

	
7.

	
RETURN OF PRODUCT

	
  

	
(a)

	
SEMI-ANNUAL ROTATION. After forty-five (45) calendar days following each period of six (6) consecutive months during the Term, FUTURE may return to SUPPLIER. for credit, a quantity of Products the value of ten percent (10%) of the net sales dollars invoiced by SUPPLIER to FUTURE for all Products purchased by FUTURE during the previous six (6) month period. Credit issued for such returned Products will be based upon the price paid by FUTURE, less any prior credits granted by SUPPLIER on the returned Product and applied against future purchases of Products from SUPPLIER. FUTURE may make such returns from one or more stocking location(s). The foregoing return privilege shall be subject to the following conditions:

	
  

	
(i)

	
The Products are returned in merchantable condition;

	
  

	
(ii)

	
Prior to returning any Products, FUTURE obtains a Return Material Authorization from SUPPLIER.

	
  

	
(iii)

	
Aluminum Electrolytic Caps have not been in FUTURE's inventory for more than eighteen (18) months

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

5

  

	
  

	
(b)

	
INITIAL STOCK ORDER. Within twelve (12) months following the date of this Agreement or the date of; any New Product is added hereunder, as the case may be, FUTURE may elect to return to SUPPLIER, for credit, any and all of such New Products in its inventory. Such return is subject to all of the conditions of paragraph (a), (i) and (ii) above.

	
  

	
(c)

	
NEW PRODUCTS. For purposes hereof, the term "New products" shall mean any and all Products:

	
  

	
(i)

	
Ordered by FUTURE under its initial stocking order, or

	
  

	
(ii)

	
Added to the Products listed on the Distributor Cost List and ordered within thirty (30) calendar days of the date of such addition.

	
8.

	
PRODUCT CHANGES

	
  

	
(a)

	
DISCONTINUANCE AND OBSOLESCENCE. SUPPLIER reserves the right to discontinue the manufacture or sale of, or otherwise render or treat as obsolete, any or all of the Products covered by this Agreement upon at least forty-five (45) calendar days prior written notice to FUTURE. FUTURE may, in its discretion, within sixty (60) calendar days following receipt of such notice, notify SUPPLIER in writing of its intention to return any or all Products so discontinued or rendered obsolete which remain in FUTURE's inventory and shall receive e credit for such Products equal to the price paid by FUTURE for the same provided that said Products are returned within forty-five (45) calendar days of the date of SUPPLIER's Return Material Authorization. SUPPLIER shall pay all freight and shipping charges in connection with any such returns. Returns of Products under this paragraph (a) shall not be counted as ''stock rotation” for purposes of computing the amount or Products returnable by FUTURE under paragraph 7(a).

	
  

	
(b)

	
FUTURE shall be granted the exclusive first right of refusal to purchase any or all product discontinued or made obsolete as per paragraph 8(e) above. This Includes all existing SUPPLIER inventory (including recent distributor returns) as well as FUTURE'S final lifetime buy at quantity levels which are mutually agreeable.

	
  

	
(c)

	
MODIFICATION OF PRODUCTS. SUPPLIER shall give FUTURE written notice of alt engineering modifications that will affect Products in FUTURE's inventory if such changes materially affect form, fit, or function. If these modifications preclude or materially limit FUTURE'S inventory from selling once the engineering modifications are implemented, SUPPLIER will work with FUTURE to move the affected inventory through resole or repurchase. If after the above efforts, affected Product still remains in FUTURE'S inventory, SUPPLIER agrees to replace it with upgraded Products. SUPPLIER shall pay all freight and shipping charges in connection with any such returns or replacements. FUTURE returns of Product under this paragraph (b) shall not

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

6

  

be counted as "stock rotation" for purposes of computing the amount of Products returnable by FUTURE cinder paragraph 7(a).

	
  

	
(d)

	
RETURN MATERIAL AUTHORIZATION. A Return Material Authorization shall be issued by SUPPLIER no later than fifteen (15) calendar days of any request for the same by FUTURE when required in connection with any legitimate return under this Agreement.

	
9.

	
WARRANTY, COMPLIANCE WITH LAWS

	
  

	
(a)

	
STANDARD WARRANTY. The Products shall be covered by SUPPLIER'S standard warranty terms and provisions, provided, however, that the warranty coverage shall be no less than the following:

	
  

	
(i)

	
The warranty period set forth therein shall run for one (1) year following FUTURE'S shipment of the Product to the customer;

	
  

	
(ii)

	
SUPPLIER shall extend such warranty directly to the customer as if such customer had purchased the Products directly from SUPPLIER.

	
  

	
(iii)

	
SUPPLIER shall warrant the Products against defects in material and workmanship under normal use and service, repair or replace at SUPPLIER's cost any defective Product (or issue a credit or refund, as the case may be, based on the purchase price paid therefor); and

	
  

	
(iv)

	
SUPPLIER shall pay (or refund the amount of) all freight and shipping charges for any defective Products returned under this paragraph.

	
  

	
(b)

	
COMPLIANCE WITH LAWS, Notwithstanding anything to the contrary contained by SUPPLIER'S standard warranty terms and provisions or elsewhere in this Agreement, SUPPLIER shall indemnify FUTURE against, and hold it harmless from, any cast, loss, damage or liability (including reasonable legal fees arising from or related to the failure of the Products, as manufactured and sold to FUTURE, to fully comply with all applicable laws, standards, codes, specifications and regulations or the failure of the Products to be suitable thereunder for resale or other distribution by FUTURE as contemplated by this Agreement. The warranty and indemnification provisions of this Agreement shall survive the termination hereof.

	
10.

	
INDEMNIFICATION

SUPPLIER will indemnify, defend and otherwise hold harmless, FUTURE, its affiliates and customers from all cost, loss, damage or liability arising from any proceeding (legal or equitable) or claim brought or asserted against FUTURE, its affiliates or customers, to the extent such proceeding or claim is based on an allegation that the Products, of any part thereof, or their distribution for use constitute an infringement of any, patent, copyright, trademark secret or violation of any legislation now or hereafter enacted, or like or similar claim, if FUTURE promptly notifies SUPPLIER of 'any such proceeding or claim after it becomes known to FUTURE end FUTURE provides all the assistance and cooperation to

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

7

  

SUPPLIER that is reasonably requested including the right of SUPPLIER to select and instruct legal counsel for the purposes of any defence of FUTURE within the meaning of this provision SUPPLIER shall not be liable to FUTURE under any provision of this paragraph to the extent that any claim is based upon;

	
(i)

	
a use for which the Product or part was not designated; or

	
(ii)

	
an alteration of the Product or part by FUTURE or a third party under FUTURE's direction and which alteration has caused the infringement action.

	
11

	
TERM AND TERMINATION

	
  

	
(a)

	
TERM. The initial effective period of this Agreement is for one (1) year commencing on the date initiated on page (1) one. At the expiration of such initial effective period or any extended period, this Agreement will automatically he renewed and extended indefinitely for additional periods of one (1) year unless either SUPPLIER or FUTURE shall give the other at least ninety (90) calendar days prior written notice of its intention not to have the Agreement so renewed.

	
  

	
(b)

	
TERMINATION FOR CIONVNIENCE. Either SUPPLIER or FUTURE may at any time terminate this Agreement with or without cause and solely for its own convenience by giving ninety (90) calendar days prior written notice to the other. Both SUPPLIER and FUTUR represent that they have considered the making of expenditures in preparing to perform under this Agreement, as well as the possible losses which might result in the event of any termination of the Agreement. In that regard, both parties acknowledge that neither party shall in any way be liable to the other for any loss, expense or damage (including special, consequential, or incidental. damages) by reason of any termination of this Agreement without cause,

	
  

	
(c)

	
RETURN OF INVENTORY. In the event SUPPLIER terminates this Agreement with or without cause or elects not to renew the same, SUPPLIER shall repurchase from FUTURE all unsold Products from FUTURE'S inventory at the price paid by FUTURE, less any prior credits granted by SUPPLIER on such Products. SUPPLIER shall pay all freight and shipping charges in connection with such repurchases.

In the event FUTURE terminates this Agreement with or without cause or elects not to renew same, SUPPLIER shall repurchase from FUTURE all unsold Products from FUTURE'S inventory at the same price as set forth in the paragraph (c) above less a five percent (5%) restocking charge. Aluminum Electrolytic Caps must not have been in FUTURE'S inventory for more than eighteen (18)_ months. FUTURE shall pay all freight and shipping charges in connection with such purchases. In the event of any termination, SUPPLIER

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

8

  

shall, if requested to do so by FUTURE, honor any open FUTURE purchase orders for customers of SUPPLIER Product then outstanding. Notwithstanding the foregoing SUPPLIER shall he required to accept only those Products which are in god merchantable condition. No termination of this Agreement shall affect any obligation of either party to pay amounts due to the other hereunder and all such payments shall be made when due

	
12.

	
COOPERATIVE ADVERTISING

To assist FUTURE in adverting and promoting the Products, SUPPLIER will accrue into a special cooperative advertising fund two percent (2%) of the net sales dollars invoiced to FUTURE in a consecutive twelve (12) month period. Amounts in such fund shall be used by FUTURE in connection with advertising: and other promotional efforts approved by both FUTURE and SUPPLIER. All unexpended funds for any calendar year in The SUPPLIER portion will automatically be carried forward into the next year.

	
13.

	
WAIVER

Except as otherwise herein expressly provided, the failure of SUPPLIER to enforce at any time or for any period of time the provisions of this Agreement shall not be construed to be a waiver of any such provisions or the right of SUPPLIER thereafter to enforce each and every such provision.

	
14.

	
NOTICES

Notices and other communications by either party under this Agreement shall be deemed given when deposited in the mail system as certified mail, postage prepaid, addressed as indicated on page (1) one.

	
15.

	
TRADEMARKS, TRADE NAMES

This Agreement shall not create, and SUPPLIER shall have no right in, or lo the use of, any trademark, trade name, logo, service mark or other mark, identification or name of FUTURE. FUTURE recognizes SUPPLIER's ownership of, and right to use, certain trademarks, trade games, logos and other marks and names and acknowledges that, except as herein set forth, FUTURE has no right in, or to use, any thereof. Notwithstanding the foregoing, FUTURE is hereby granted permission to refer to SUPPLIER's trademarks, trade names, logos and other marks and names for the purposes of identifying itself to the public as an AUTHORIZED DISTRIBUTOR of the Products end for advertising and otherwise prompting the resale, lease or servicing of any Products purchased under this Agreement, but subject always to SUPPLIER'S right to control or otherwise direct on instruct FUTURE with regard to the proper authorized use thereof.

	
16.

	
CONFIDENTIAL INFORMATION

SUPPLIER and FUTURE shall leach receive and maintain in confidence all proprietary information, track secrets or other know- belonging to the other

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

9

  

(including but not limited to knowledge of manufacturing or technical processes, financial and systems data and customer lists) provided that any such information, secrets or know-how is required by any law or governmental regulation or the decree of a court having competent jurisdiction or enters into the public domain without the act of the party obligated to maintain such confidentiality hereunder). Without limiting the foregoing, all bunks, documents, records and other material and information made known to the parties by each other are hereby designated as Confidential, Furthermore, SUPPLIER shad at all times retain the Copyright in SUPPLIER's works whether literary. artistic or otherwise, supplied to FUTURE

	
17.

	
SPECIAL PURCHASES

SUPPLIER and FUTURE may at any time during the Term enter into separate Agreements for the special purchase of other Products Including non-standard Products not set forth in SUPPLIER'S then current Published Distributor Price List and such Agreements shall be subject to all terms and conditions hereof unless inconsistent with the terms of such Special Agreement or otherwise agreed upon.

	
18.

	
INVALIDITY OF PROVISIONS

In the event that any term or provision of this Agreement than be deemed by a court of competent jurisdiction to be overly broad in scope, duration or area of applicability, the court considering the same shall have the power and is hereby authorized and directed to modify such term or provision to limit each scope, duration or area, or all of them, so that such term or provision is no longer overly broad and to enforce the same as so limited. Subject to this foregoing sentence, in the event any provision of this Agreement shall be held to be invalid or unenforceable for any reason, such invalidity or unenforceability shall attach only to such provision and shall not affect or render invalid or unenforceable any other provision of this Agreement.

	
19.

	
CREDITS

In the event FUTURE is entitled to a credit from SUPPLIER hereunder, the amount of such credit will be applied to the purchase of Product or FUTURE'S Accounts Receivable with SUPPLIER.

	
20.

	
CONSENT NOT UNREASONABLY WITHHELD

Whenever any consent, action or authorization is requested of SUPPLIER hereunder such consent, action or authorization will not be unreasonably withheld or delayed.

	
21.

	
FORCE MAJEURE

Nonperformance under this Agreement shall be excused, and neither party shall be liable for any loss, damage, penalty or expense, to the extent that such performance is rendered impossible or delayed by fire, flood, acts of God or the public enemy, acts of the Government, labour difficulties, riot, inability to obtain materials or any other cause where the failure to perform or delay is beyond the reasonable control of the nonperforming party and without the negligence of such party.

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

10

  

	
22.

	
RELATIONSHIP OF PARTIES

The relationship between the parties hereto shall be that of independent contractors, each being in full control of their own business. Under no circumstances shall either party have the right or authority to act or make any commitment on behalf of or bind the other or represent the other as its agent in any way

	
23.

	
GENERAL

(a) ENTIRE AGREEMENT. This Agreement, including SCHEDULE A, attached hereto, supersedes all prior communications or understandings between FUTURE and SUPPLIER and constitutes the entire agreement between the parties with respect to the matters covered herein. In the event of a conflict or inconsistency between the terms of this Agreement and those of any order, quotation, solicitation or other communication from one party to the other, the terms of this Agreement shall be controlling.

(b) AMENDMENT. This Agreement cannot be changed, modified or amended unless such change, modification or amendment is in writing and executed by the party against which the enforcement of such change, modification or amendment is sought.

(c) GOVERNING LAW This Agreement is made in, governed by, and shall be construed solely in accordance with, the internal laws of the State of New York.

(d) ASSIGNMENT. Neither party shall have the right to assign this Agreement or any rights hereunder without the prior written consent of the other except that either party may make such an assignment to another corporation wholly-owned by or under common control with it. For purposes hereof, the term "assign" shall include, without limitation, a merger, sale of assets or business, or other transfer of control by operation of law or otherwise.

(e) AUTHOR1TY. Both parties represent and warrant to each other that they have the right and lawful authority to enter into this Agreement for the purposes herein and that there are no other outstanding agreements or obligations inconsistent with the terms and provisions hereof.

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

11

  

IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH ABOVE, THE ATTACHED SCHEDULE OF LOCATIONS A, HEREBY FORM AN INTEGRAL PART OF THIS CONTRACT AS IF FULLY HEREIN RECITED AT LENGTH

IN WITNESS WHEREOF, the parties have set their hand and seal,

	
ACCEPTED THIS:

	  	
AGREED THIS:

	  
	  	  	  	  	  
	
18th DAY OF March  , 1998

	  	
18th Day of March, 1998

	  
	  	  	  	  	  
	
DISTRIBUTOR:

	  	
SUPPLIER:

	  
	  	  	  	
SURGE COMPONENTS INC.

	  
	
FUTURE ELECTRONICS INC.

	  	/s/ Ira Levy	  
	  	  	  	  	  
	
/s/ Sam Abrams

	  	  	  
	  	  	  	  	  
	
BY:

	
Sam Abrams

	  	
BY:

	Ira Levy
	  	  	  	  	  
	
TITLE:

	
Executive Vice President

	  	
TITLE:

	CEO

 

  

12

  

Supplier and Distributor hereby agree that whenever the distributor announces the opening of a new branch location, supplier agrees that each new branch location shall automatically be franchised.

	  	
SCHEDULE "A”

	  	  
	  	
WORLDWIDE

	  	  
	  	
“America”

	  	  
	  	
"Asia"

	
City

	
Country

	  	  
	
Me1bourna

	
Australia

	
Sydney

	
Australia

	
Brisbane

	
Australia

	
Beijing

	
China

	
Chengdu

	
China

	
Guangzhou

	
China

	
Hong Kong

	
China

	
Hong Kong

	
China

	
Kowloon

	
China

	
Nanjing

	
China

	
Shanghai

	
Chine

	
Shenzhen

	
China

	
Wuhan

	
China

	
Bangalore

	
India

	
Mumbai

	
India

	
New Delhi

	
India

	
Tokyo

	
Japan

	
Seoul

	
Korea

	
Kula Lampur

	
Malaysia

	
Penang

	
Malaysia

	
Labuan

	
Malaysia

	
Christchurch

	
New Zeeland

	
Wellington

	
New Zealand

	
Makati City

	
Philippines

	
Singapore

	
Singapore

	
Taipei

	
Taiwan

	
Bangkok

	
Thailand

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

13

  

Supplier and Distributor hereby agree that whenever the distributor announces the opening of a new branch location, supplier agrees that each new branch location shall automatically be franchised.

	  	
SCHEDULE "A"

	  	  
	  	
WORLDWIDE

	  	  
	  	
"America"

	  	  
	  	
“Europe"

	
City

	
Country

	  	  
	
Holstebro

	
Denmark

	
Colnbrook

	
England

	
Birmingham

	
England

	
Bristol

	
England

	
Manchester

	
England

	
Espoo

	
Finland

	
Pads

	
France

	
Lyon

	
France

	
Rennes

	
France

	
Toulouse

	
France

	
Munich

	
Germany

	
Berlin

	
Germany

	
Dortmund

	
Germany

	
Erfurt

	
Germany

	
Frankfurt

	
Germany

	
Quickborn

	
Germany

	
Langenhagen

	
Germany

	
Stuttgart

	
Germany

	
Budapest

	
Hungary

	
Ennis

	
Ireland

	
Tel Aviv

	
Israel

	
Bologna

	
Italy

	
Milan

	
Italy

	
Padova

	
Italy

	
Breda

	
The Netherlands

	
Oslo

	
Norway

	
Trondheim

	
Norway

	
Warsaw

	
Poland

	
Clydebank

	
Scotland

	
Madrid

	
Spain

	
Stockholm

	
Sweden

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

14

  

Supplier and Distributor hereby agree that whenever the distributor announces the opening of a new branch location, supplier agrees that each new branch location shall automatically be franchised.

	  	
SCHEDULE "A”

	  	  
	  	
WORLDWIDE

	  	  
	  	
"America"

	
City

	
State/Province

	
Country

	  	  	  
	
Raleigh

	
N Carolina

	
U.S.A.

	
Charlotte

	
N. Carolina

	
U.S.A.

	
Nashville

	
Nashville

	
U S.A.

	  	  	  
	
Reno

	
Nevada

	
U.S.A.

	
Parsippany

	
New Jersey

	
U.S A.

	
Marlton

	
New Jersey

	
U.S.A.

	
Buffalo

	
New York

	
U.S.A.

	
Fishkill

	
New York

	
U.S.A.

	
Rochester

	
New York

	
U.S A.

	
Syracuse

	
New York

	
U.S.A.

	
Hauppauge

	
New York

	
U.S.A.

	
Mayfield Heights

	
Ohio

	
U.S.A.

	
Beavercreek

	
Ohio

	
U.S.A.

	
Tulsa

	
Oklahoma

	
U.S.A.

	
Portland

	
Oregon

	
U.S A.

	
Wexford

	
Pennsylvania

	
U.S.A.

	
Pittsburgh

	
Pennsylvania

	
U.S.A.

	
Richardson

	
Texas

	
U.S.A.

	
El Paso

	
Texas

	
U.S.A.

	
Houston

	
Texas

	
U.S.A.

	
Austin

	
Texas

	
U.S.A.

	
San Antonio

	
Texas

	
U.S.A.

	
Salt Lake City

	
Utah

	
U.S.A.

	
Charlottesville

	
Virginia

	
U.S.A.

	
Bothell

	
Washington

	
U S.A.

	
Brookefield

	
Wisconsin

	
U.S.A.

	
Campinas

	  	
Brazil

	
Jalisco

	  	
Mexico

	
Monterrey

	  	
Mexico

	
Ixcalli

	  	
Mexico

	
Xochinahuac

	  	
Mexico

	
Mayaguez

	  	
Puerto Rico

	
San Juan

	  	
Puerto Rico

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

  

15

  

Supplier and Distributor hereby agree that whenever the distributor announces the opening of a new branch location, supplier agrees that each new branch location shall automatically be franchised.

	  	
SCHEDULE “A”

	  	  
	  	
WORLDWIDE

	  	  
	  	
“America"

	
City

 

Montreal

Quebec City

Ottawa

Mississauga

Winnipeg

Calgary

Edmonton

Vancouver

Huntsville

Pheonix

Little Rock

Norcross

Texas Columbia

El Segundo

San Jose

Agoura Hills

San Diego

Irvine

Marin

Roseville

Maquilla

Santa Cruz

Ventura

Lakewood

Chesire

Altamonte Springs

Deerfield Beach

Fort Walton

Largo

Tallahassee

Norcross

Boise

Hoffman Estates

Indianapolis

Overland Park

Columbia

Bolton

Livonia

Grand Rapids

Eden Prone

St. Louis

	
State/Province

 

Quebec

Quebec

Ontario

Ontario

Manitoba

Alberta

Alberta

BC

Alabama

Arizona

Arkansas

Atlanta

Austin

California

California

California

California

California

California

California

California

California

California

Colorado

Connecticut

Florida

Florida

Florida

Florida

Florida

Georgia

Idaho

Illinois

Indiana

Kansas

Maryland

Mass.

Michigan

Michigan

Minnesota

Missouri

	
Country

 

Canada

Canada

Canada

Canada

Canada

Canada

Canada

Canada

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

U.S.A.

	
INITIAL:

	/s/  Ira Levy	  	
/s/ Sam Abrams

	  
	  	
SUPPLIER

	  	
FUTURE

	  

 

 

16Unassociated Document

Exhibit 10.24

 

ADDENDUM "A"

SUGE COMPONENTS

 

As per the provisions of the Distributor Agreement between SURGE COMPONENTS INC., and FUTURE ELECTRONICS, dated March 18, 1999 the Authorized Distributor Agreement between the above captioned parties is hereby amended as follows:

 

This addendum authorizes all FUTURE ELECTRONICS branches Worldwide to sell products manufactured by CHALLENGE ELECTRONCIS under the same terms and conditions of the Surge Components Agreement.

 

All other terms and conditions to the Distributor Agreement dated March 18, 1999, . between Surge Components Inc. and Future Electronics shall remain unchanged.

 

 

	FUTURE ELECTRONICS               	 	 	SURGE COMPONENTS INC.	 
	 	 	 	 	 
	 	 	 	 	 
	
By: /s/  Sam Abrams

	 	 	
/s/ Ira Levi

	 
	
Sam Abrams

	 	 	
Ira Levi

	 
	Printed Name 	 	 	Printed Name 	 
	
TITLE: Executive Vice President

	 	 	
Title : President

	 
	 
DATE:February 27, 2003

	 	 	Date: March 12, 2003

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]